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1978
PRELIMINARY OFFICIAL STATBMFN' T DATED MARCII I, 1978 NEW ISSUE i ~ ! / Y i ~ F } .fit F ..'y E l In the oplnlon of C+:unael, Intere-11 on the Bondi is exempt from 0 present federal income faxes under ex(stlns sfafutes, regulatlons, ridings and court deelslons, as nfore fully set forth under "Tax Exemption" herein. z° W.!« $29 000,0000* os CITY OF DENTON 'TEXAS 2 Electrll~' System„ Revenue Refunding fonds, Sewl0~ 1978 g The Bonds ire WAS Issued by the city or Denton, Texas, to provide moneys which will b6 4ftidefit to refund the City's $16,902,000 Outstanding Electric Revenue Bonds. The Bonds are payable from Net Retenuts of the City's Elociric tight and power System (a, defined in the Ordinance authorlr.Ing (ssuancq of,the Oortds). og§ 1 1 Dated- March IS, 1978 Dues December to as shown below. cc I ~s a Principal and interest (December 1, 1978 and each June 1 and December I thereafter) am payable at the option of the holden at First National Bank In Dallas, Dallas, Texas or at First State Bank, Denton, Texas. The p ion to willaberity desYrabod'h~ t bonds in} e1 p~n1~lll~s~; s3onds are subject to redemption ~y9 W BYO z AM T 1TY SCHEDULE o for u 1 ~ A l lr, ,.;i l ri r .L z ICCCUed ifllEf C6l l~ i)C~ BaC~) a The Bonds are offered for delivery whelt, as and if Issued and received by theU» titfr+ ,I&M kubjW161t 9 the unqualinod iap¢foval.orlho Atlor qq++:.0eneral or the State o(Jexas.•ol,of Norton Meuts.,McCall, palkbfrtsldt: , IA ounjel, Dallas, Texan (whose approving oplrsion will be r)ri E u ad ,,~y~pn,o r respect to atbitra a b( Messrs, Dewey, tlallantiae, Bushby, Palr:,er do Woa~ N v k p) f 01% Counsel to the City (which will also be printed on the Bonds). Certain legal matters will be passed.ur the Underwriters by Messrs, Dewey, Ballantine, Bushby, Palmer do Wood, New York, New York, Counsel to the i tsnderwriters. It is expected that the Bonds will be available fordelivery In New York City on or about Match.,,. 2 1978. , 75 r.NOs trt~ t/,Y1~/'/II 2 Goldman, Sachet & Co,`r!/,',t,u, s, 1c, Ir1~,1 ~61r1on,6 kleacI18 ~I. nc Stephens, hic, *Subject to change, , f CITY OF DENTON, TEXAS try N t' GH CITY.sC0VNCl4: f E g 4 jt kRi.tiv AL ~r (11 14 ~ .r /117/ t~ J1 1 i r~ '~1(f~r ~1. i~, S... r~ 1 1 ri. y~(.. E ' JOE MITC {ELL......,,, Mayor Pro?'em councilman 1~' $ BILL, NASH ,rr.,.r....,.. RICHARD ST S~~ ...Councilman ' A D13 bAY. ~t,,,. Name P9000 Chris Hartung rty ~anagcr Jack Owen Assistant City Manag; r King Cole Assistant City Manager William H. Bryant Dlroctor or Finance R. E Nelson Dirertor Of Utilities Bolgoks Holt Cir, :iecrcrary P,tul Isharn City AVorney , F rgiVStyl, ~ N $ fb l McCALL, PARKHURST do HORTON, Dillaf, Texas' Bond ~ ounscl DEWEYi BALLANTINF.r;BUSHByo,,,+ !,m; t ; r PALMERrdE f .L r, i i WOOD, fieW1Ydrk;;Ncw1Y40k1 Sped &I Tax Counsel Tq~Tbolclty" ~14(; ALE7ti~ClVC?R yf s C~ A{yy~`,~~~~}}}1~~~,,,'dC CbMPA1VY i a., .t; rig 1 t ~ , t t , a f rt I <,;1 ~ 1 . r e 'f 91 r~~k N ( i .L11. 1 AUYlt0~51 i. ~t 6' 1...,,,. 7!' i., f 1, ~ f 11L , I ' r t i rl ~,i Y , .r~,Y/ !r, ,f rir r, fif i'.!N ' t!I 'f" i r .;i'. it•. 1 t 1 :1 ~t , ! , , i , 1 ;r 1 1 Ali I ~.I { i't,t'1 1 t .~~:,~i ~ X11.! I,ii; r „„~~i t..,tr, r,,nir,l"•;1;1~) ti-,]!t!',I,r.~; ,r.,.!~1n;,lr,t'~"i~.~'%il'iR,k{•1i,f,(f.r,, l~~, ,~r,Il,tl ills! "i~~J'7 r'C 71 ti7r!:'NIY~,fl i.~ >rINANCIAL'ADVISORS HC1'1 FIRST SOUTHWEST COMPANY Merc ntile 1 snk Building,~;palias, Us 73201 i ` [vo t(10 110 A The price and other terms respecting the offering and sale of the Hoods may be thanged from time to time by the Underwriters after such Bonds are released for salt, end such Bonds may be offered and sold at peces other than the initial offering price Including sates to dealers who may All the Bonds Into Investment accounts. In connection with the offerlne ? the Bonds, the Underwriters may over-allot or effect transactions which stabilize or maintain the market price of the Bonds at a level above that which mlghl otherwise prevail In the open market. Such stabilizing, If commenced, may be discontinued at any time, This Official Statement is submitted in connection with the sale of secarltics as'referred to herein and may not be ref,roduced or be used, in whole or la part, for any other purpose, The delivery of this Official statement at any time does not Imply that information herein is correct as of any time subsequent to its datr. No dealer, salesman or any other person has been authorized by the City to give any Information or to mokn any representation other than as contained in this Official Statement in connection with the offering described herein and, if given or made, such other Information or representation mutt not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offcf of any securities other than those described on the cover page or an offer to sell or a solicitatlon of an offer to buy in any jurisdiction in which it is unlawful for such person-to made such offer, solicitation or sale. TABLE OF CONTENTS Vast INTRODUCTION 4' REFUNDING PLAN 4 SOURCE AND APPLICATION Of FUNDS.......... 5 THE CITY . . 5 AUTHORITY AND SECsiRIrY FOR BONDS 5 DESCRIPTION OF BONDS ..........................i..... 8 SCHEDULE OF DEBT SERVICE . 9 Tim SYSTEM.......... 10 SUMMARY OF CERTAIN PROVISIONS OF THE ORDINANCE 16 ABSENCE OF LITIGATION AS To REFUNDINO BONDS 25 ELIGIBILITY AS INYtiil'MENT$ 25 UNDERWRITING 26 TAX F.XEMPTION 26 LEGAL MA`rTERS............................ 27 VERIFICATION OF MATHEMATICAL COMPUTATIONS r................... 27 MISCELLANEOUS 27 APPENDIX A FINANCIAL STATEMENTS OF THE CITY APPENDIX B CITY`S ECONOMIC BACKGROUND APPENDIX C FORM OF LEGAL OPINION OF MESSRS. MCCA! L, P.AR1:kURST A! ItOF.TUN APPENDIX D- FORM OF LEGAL OPfr '1N OF MESSRS. DE%%';), PWANrINv, PLSIIBY, PALMER St WOOD APPENDIX E POWER SALLS CONTRACT . 2 ~ f Ile 4MY r ~ r e (THIS PAGE I. EFT BLANK INTENTIONALLY) its. is Jr.• ii1.J. '-0~d ! Gt d,.•fJrt _ r.e„tfAt , fn~ , .~fr•,r,i,: t/ li ur+i.! rr,iar:•uxr: rri) ;rr; tfi rtib! r~ rr I ~sfrr. r(} ~ r r~~: f ~t I? . r t r r fr ,t 't t r R ,,..i~ ! ✓n J h ,yJ 3 CITY OF DENTON# TEXAS Civic Center AS E. McKinney Street Denton, Xcias 16201 Telephone 817/382-9601 „ OFFICIAL STATEMENT f0241 to $29,0b0,000* '3!,' ,`talk; " It'T [ III' i?;~ ' dill bENTtON TEXA1 Electric System Revenue Refunding Bondy, Series 1978 INTPF)DUCTION This Official Statement, including the cover page, of the city of Denton, Taxes (the ' City t) furnishes information Oth respect to the City, its Electric . Light and Power System . (ehe,PSyWm"); 'and the $29,000,0006 principal amount of City of Denton Electric System Revco" Refunding Bonds, Series 1978 (the r The Bonds will be issued pursuant to an ordinance adopted by the CityCounsei of the City of Denton on The date of this Official Statement (the "Ordinanoc"), which also provides for the Of g ce, by supplemental rdinance, of additional bonds of different sera , r nki g e) h, $ a per~1X wit1, i~ie qp except with respect to the sped At" Retirement Fund" created for the sole I; ,Ai ikohbe %`9 un~q~ ihe` ~rms and subjxt le the conditions set forth id the Otd'datlce And describMLIhef#n (tho' '!~r!a 31~p>iO , he City has issued, under the provisions of a Bond Ordit,ance, da~ed'%cej ~r'1;;'154, and ordinance supplemental thereto, nii a series of its Electric Revenue Bolds In tht`fggregal ,;itri;abal amount 528,22 24,000, f w h Ipdh bond} in fit a gre$atq principal eMouot of;;til902j(i~013pi a qurqn Iy oytt4jnding 11, rE1, 76 r. .f I(1 9. it !•1 . rtr Jvi r i , S1,389,OOOSeries 1934 ! ; . UW F... 461,000 Series 19$3 30,000 Serld 1968 301,000 Series: B, 1959 2,S701J0Q Series 1970 t' .,oo a ~1`4,060,lis 1961 ,rl r,r 3 ,,:3 -41 t r {.n 4,e~0M0,WU3fti21i'l"9 2 tll ~ 'r{ I If ,ri'?f J3J1-~',r;~ ;Ii T:^fR^' 'f-. ,3!hl~ ::it (f', f.r r[![li li,. 11,4000S8619741i,~1 The City is refunding the O,tstandirg Bonds througgh the Issuance of the Bonds, Tile City has de(ermitied that it 1. 116 IN Wit Ihtestit'to"teNhb tbd'OutstahdI9g` 116ndsId otder'1o400'14 ?elegie and diachAtge'oT'the'llehs;!~led~s`a`nd'EddcrtaAts bfthe'dfdinatiCrbl"'diJthorFr~ti'f"tha~Oilh,iYlrfdih"gBoiidSr°','~r' None of the OutstandimilydtidsVSill'bE'cit'ite'd'fo'i fddhptio'd 6HV td their scheduled maturity, 'Ii .!'1 !`t l! E.r. 1lr. .'!L $7 t r ,.'r:., :1 "'.)V REFUNQINC. PLAN ,~":11 flf'I )3 t;ph{ rf. , Tbeprocoedi whI tbd csworthofsoo8ill oct`ofnnahiiigreApen~J1','usldlrwtitrngdIgourit idifde "'ilia t to the Reserve Fund arrl the Contingeaey Fund established pun4ant to the Orditiisrii~; deli i held brink` National Bank In Pallas, Dallas, Texas (the "Escrow Agent") In %n escrow recount (the "Escrow Fund") and used to pur,"na4e S.,..„,.,... principal amount of direct obligations of the United hStifttF,`'WArAt~ 13 ePecAlly iesued,.by'tbf Qepsriment of.Treaaury, *reau of,Public;Debt is book fatty forts (the!Ttederal Seairitles"), ,1 he. fe6ral Securities will mature, at such tlmes and .yield; intereat In suth amounts that pr y,,•t irJift 11/ •Subject to change. w l li V; 93 4 sufficient moneys will be available fr6fif th'g' pjQHiig'`prihcfpel drld interest thereof to pay, when d;u, the principal of and Interest on the Outstanding Bonds. S'ich maturing principal or and Interest on the Federal Securities will not be availatle to pay the Bonds. ; Under an escrow agreement to be dated the date of d.-livery of the Bonds (the 1"Ekebw Aareemenit') between the City and the Escrow Agent, the Escrow Agent will hold and adminlster the Escrar Furtd Arid will apply the maturing principal 'of and Interest on the Federal Securities to payments of principal of and Interest on the Outstanding Bonds. Since all payments of principal and interest or, the Outstanding BondR will thereafter be provided for by the Escrow Agreement, liens, pledges and covenants of the Outstandimd Bonds will, pursuant to applicable law, automalicl'ify" Wminate and be discharged and released. SOIIRCE AND APPLICATIQN QF 'a ,'7NDS The proceeds from the sale of the how$: SDURCEOFFUNDY. Principal Amount of Bonds S t sLess Origlnal Purchase DisEouit... ; ~Gro"BONProogedsm.~1..7.:..I,..,,:...a.;.,,r;,,l.t..t,:.,,,. ir$ N; 5 1 J . i, ilV,~1' Less Undbrtyriters'~Disoount:Iri.d,....o;...:.E.:.,.t;l.lsl,:~.:a Total Aval I able Fm 0.4 r .l.,.. `.................1.6.,.,.i{l',. iA.l,....: P rC itri y off. f{dtp al,$ecu it ti: , f. SU1, S~~tO " ~~[j ~{~e~f U d'{ ~ a~ i~ it i II RU Il.ril ~ E I', 1, {`7l r' It lr A~ .IBS i 1 E~ Er', .."1 1 I ail r' -1 .-r } i1 r'r a t E,ri ~ f r I f . 1 n li r rr5 r,t' i1' . > H 1 I t a. ~t I rI f t.~ ~i , , t.. r f.f post lti ohtiniency fund City in~ lnclu~ing fees 61, legal, Rn ihci'~~'~j r oeY, trl}ftl'9 else{ow ling pay Rq agent services, computation and miscellaneous expenses o~ i'suana ofr duds' and des(gn, acquisitl9P and p~rnJgistrfpon or Escrow Fund. I,e,IP 1~?P ;td, ft1rl,lrrt THE CITY The City gf,h4t0.*'IS thp.„GQunty Seat for Denton County, cpd, Is,located:Within 38 miles of both downtown DaI1Re and to fk,KW,orth.gnd I$ miles from the Dallas-Fort Worth Regional Airport. The City operates Its electric system as a separate utility; 1 yfl') a II. ; hl Ill ~Ift 'Ir, tr,if ^rE1 iF rxr!~i , i .,}l trr{rn 1 !it) •r+1 2~,+k~rE+Ila:rt ~!i ! } :7 A }~rtY,I't iI4!fr1l~.bY n rty,4rMAmb Ny„GPynF4.Iho.mern'bstcaf w*b;ar.9 00;t04 lot twinear, staggef l,tSrr ?{r 4f, ft►r4hsr n,~4r,4?a4ifttt. feffii.4A th,4+GitY, A44, Al~v4ftd! $tlo,.tpi: QrJisial stt;l."ri 14; The Bonas are being Issued under the authority of Vernon's Ann. Tex, Civ. St, Article I IISm12 (the "Act") and the Ordigance, copies of which fnig be' bb(AfAd frbfit the City or the Underwriters. Terms used in;thils'Al"relp~{tim"ll ,RrtMG,~+ ¢lpMpfiigQS~ ~4:, m 1p, kbo Qr&Ano,,,S4e;l'Summary pf:.Certain qp( ft rd tl ,r~1 r':1 U~~s,f1'Ur) ,I~r1I'I„1,.1 !r'id > -SiRi}. ) ;f,rl1'IC tr"I ~1L ~EI Q.w 9 rte r t':, s . i.': 1•:-r, r,! (J a .f, r.vra: ~ •,.PI r:~I '!,.C~ u. lid' i ~1 . 1~ - ft iS ~h~A~t ~~4}~f ~~~f tAI ~ ~ ~7 ~'?cCl i I9 S7rr~r~'.r I. ~~I~f1 I,~ {f{.,1 'is ik',I.IfIIS i, ~~1 ~i~rll l .I t.'a^rr ~.1ti it ,114TM Bondsj- inj ~ the, Int6rest4,bddp6hI; it ettaihift,thoreto;► aYe'saauted,101) kAd frdm` Ott Irrevocable lirif Iien upon add pledge'of the Plbdged P.even*d as defined in We Ordihktft,'which lodudtf Initially the Net Revenues of the City's Electric Light and Power System and may, In the ruture, at the option of the City, ieclude other resources.,.,r,l..; r F t , o- A. 1. , h Serra 4978 Wtirement Fund `,r+ . " he Ordinance piovidea for the establishment at the Firs'. National Bank in Dallas, Dallas, Texas, as trul ra and escrow agents and as & paying agent for the Bonds, fad accounted for stpvuor and spanfror" all oil p; furls of the City, a,sepstawk (tusl.and escrow fund to bf,rntitlod the f'City of iknton >caocttic Rev nun Ro;,triding Bonds. Series,, 1978 Retirement Fund"; (hereI1101er, called the ."Retirement Fprtd").;,The Resfretnent Fund shall be used solely for the purpose of payl:ly the principal of and interest on the Bonds a$ thb seme'roature and came &P,, or on redeMption prior to mlturity,lat the option of the City, and shall constitute a sp6clai sinking fund Or the Bonds; Concurrcntly,wjth.or as $0011 as praatlcable after delivery of the Bonds, the City, shall eater into a tryst and escrow agree,o1 Pt with tho:first N&OQool Bank In 15a14a (hereinafter talled the "Series 1978 Retirement Trust Agreerlirx)i;').wh'rch.shsll Novie,,M ror;thc paymont of th'e principal of and Interest'on ithe Bands ea tht,sapiq QQtt'ltdae,;aiwd- the Infifilrnent:In Uoverrimenl Obligations of certain money deposited, to the credit bf the,,er,~PIVQl•, Fund by the City; CitlbankeN,A1, Now York, New_York will be a part,Y to the Series 19)Wtetlt4 roof trust Agreemep} far the spiv pprpo;%4 of supplying certain Government Qbdilations as so Invotmenr fyzl't9 Retiremerit Fund, The City shall Y. depbs)ts to tbo credit of the Retlrett4dt.Fund as pr?t',ded in theOfdinawr if Additionai f3QNl rughete#f,cr falntd, separate .tpec{al,invented' Piretnens furptW,(slmller,to eiUtir,emew. Fund) may or may not be establisbed, at tha optign.of tha, fray, for the spOjl henej~t 9 tech A044:0,l~altd;,at,a paying agent therer(ok, but.the Retirement Fu(►d ii r-rfml:4. soleb"fo r the bane j,lhd.sowroy of the 091 41, It pt4vidod, how'ew, that all Bonds and, Additiorl;d.,floods shard 1:0.oquruly.ryi4 rp ably~yr umd by, and paysb ftp►n.t)4e Pledged Recent.--k deposited to the credit of thePleftgd RsvsouAl;.tlndrwithgot preforettge or prlorltyj and the Bonds ttre tntftied to an exclusive claim on the PoIlreraent Fatal onty alter the dep,;alts have boon mado therein as provided in this Ordinance. Undcr the ON l.aGO@ I►nd the" 1178 Retirement Trust AliowsgVf,tbe city iw 1 1 Wrq to, ~aver,pprgh d~r )tl 11f~ I e I t pq by D n r 1~,19u~, ~I , • J cl' a (o(~ Y3rny` `ti¢q'iA~ p 4 ~n a; "at rates- exam of ti's ~t r !t`SA~P,, y R,4;~9A s, kilo a, 4P~3.v►'4 r f1F rai,u I , y a first Uen og s♦9 Gpvgrpr)oni lr to {t!I A7 l.3'yitt47 Y~ ll, 711 r ~ -0 ;i It i6` ven~nt~, 1141 i",iiit'11•e.fl`;•t ri!fl I itrX11,iii;1. (l tUlrf?ri•t 1 5{ Or if I 'tin r ° it i i 1lL1 t1S~ J l ~4nan ° N, es t,tt~~i ' 4yi u 1.o.C the Pity +vr1 eat' eR R UAt.matn(a n a`aq s?lf 1, , 1' 1~,r .,4 I sal fl;Fn (es,,a!►d,Af,~S ot,.4 uw, f1 a ~R 0~ 0 isl 1'?>tfRl(it as~a~a n~ lacy 1S pr0uc4 1v~t~ ~'If~ l~ aY,i6 s'u,`a'~rE pP~f'1l,~rr 9,~4 ruD f,flpl'v19 rR a'Y,1"~s.'4Z1 pu+ 9!;' 4t?~Na RS ~!}'4.,,F~F~? Xt;„ a .past "yNllt s iii st17'tt~s~!!y ia~SSgrf ~ ~f ! ~'.'•REI,~w ~~~~~{~{t ) ai' ra ~i7 lip,, ()),tho~amount,roquires.to be depositpd orthe~Clydinanc~e to the, ctodit of the Retirement F4,4,~ r 7 t7~1~; r ,r j -..:1 I~l+i f ! t ~.~t,,~• I't,.i;_, •3:~, r~~ the somunt, if any, required 1o be deposited 6~ ihl brdingdt! 8r'Ofdl6a dk uthorldNi'the lssu:trxe of Additional Bonds to the credit of any other special lnvftted retirement fund or funds (similar to the Retirement Fund) for any outstanding Additlonal Bonds from PledgW Ite*dA6e0d'lW P) ; .",Pledged Revenup%: Fund durlnjl-$uth,yearr plus ,I , ; rf ,'i ran- Willo r °!t •'trrr st~1)'tf~'6'~.,i;tagb 4p~"el'~JNdN~>lf`!'Hd (hfb7bbt'h&(nitlAtent~"bf`ah'ilien t5~'t'ata~c',lg"r~rlrlctoit'tl I>andt, 3C b y hl~f~, bYb j~ayable'111reBt1~ Crbth the Pied ed ll;evehnts' i'ir'nJ drld fb~ whith''riti's I$i ""'')ri~~sf~'ie21~~1~'ZnkT A1d'~rIh~11d~'`(l1".h0 MI'fEtA6A't'FtY~~H)'~dd t~et4'Cri:aitd rriid'f3sldbliih~ 6y''a~f '`"b`rdindN~'b11(Ktirizlh~tl f t~saa~ce'tilAif~ItitiaAl il,tl l,,'~'I tr'i a, I o I,' pt ,rf1r.H114 (IV, }"y'0 r' '~~'r ti) t~7, t, I l,~li ra rri tti ?I, isit! 0414) amounts sufficiont'to provide for the.depusits'requf rbd by Sections 18 and 119 of tho Ordinance to be trade to the credit 6f tho•Contingoncyt Fund aril the Improt ement Fund, wblcheyet of (i) or (ii) Is the obteri ~ 71~.~jlr ,f ) J ~{'J'~! rl tr ):I Pr rt ytl r~, (,ICI) L.`1 ?!Ir ?U tUti t r rt'.: 71 ,dr, fl ds r ?i5~i. IJ. ~ti l~t +~'):,lv ~f a, }~I~P+9~~tif~?ni, 1, ,(,r.'z UI. 1;x!7 ,'fJ .1, FSl {J}r) 7t~, {Q (C~J(l~1;G f39G ,•l'I ~'.!,(;i P`{ /f ir.11 i Jri}r'1'11 ,7'J C![i. Subject to the conditions and limitations set forth In the Ordinance., the City has reserved .tarn right under the Ordinance to Issue, in accordance with law, at ant time and for any lawful purpose, Additlonfil Bonds which nre payable from and secured by a first lien -trr, the fledged Revenues, c, 'Subject to change, 7V IPMA`771-~~M f ! ♦ „ ~ ! L.J. P - ` ~tesrhe Rued I. r :~i~u1y711,1r r <<, ~ i I ril l'le. ' thb Ordldirce'providei foi the establishment of the Reserve Fund; solely rot ti>a farther iocurity and bertfit bf the Bondi And Any Additional honJi which"ore payable from and it mred by a first Ikn on and pioJge 6rthe Plddged Rfvtnut;i. 'rm Reserve Fund may be used solely rot the purpose of (i) finally retiring the list of the Bonds add k'Ay o'utstariding'A Iditional 86nds, ohd (ii) pomit principal of acid idterest'on my Bonds of Additional Bonds whhn and to thv- extent the amounts'ln the Rclirement'Fund,`anyspocial fund created to piny' any Additional Bonds,, the improvement Fund, and Cortingency Fudd are insufficient for such purpose. The Ordinance provides thatprorriptly afterthedelivatry of the Bonds theCity shall coast to be depoilted to the credit the Reserve Fund, from flroceeds from the sale and delivery of the, Bonds', the amount of S2,250,000 (the `+Itescrve P.cqulred Amount" PWhtn and so long astht fnoiky Ind lovestrhen(s In th'e' Reserve Fund'dre not leis In market value than the Reserve" Ragaired -Amount' no deposits need bb medd WIN credit of the Reserve Pdhd: but when 0d if the Reserve Fund at any time contsids less thap'thd Reserve Requlred'Amdunt; thin; subject and subotdinitt to makirfg the required depoela to tWeredil'o(thl Retlrtiheht Fund itld itny diposits'tirpayrtienti Ntiuired to pty any Additl&sl Bondi, thdCity shall transfer from Piedgtd RtAii0es ind delfosit't6 tbe'croditof the Re:erJe Fund, semianbualt,y on`or before the 0th day of each May and`,et l Noventbefi a iam'egdal to 1/10th,of the, Reserve Regalred Amount, until the Reserrre Puftd is: r4to4fru the Reserve Requlred Amount: The City ipecitkaily eovenYnti that It Will? betwad the 20t1:'Mnd Mili'de)i of each May and or each N&edtbrr of each ydari deposlt to the'eredit br tw Revehlfi N0 Wl jut)1ul-1st the3keservli Furdd over tH Rese'rve'Required Artoanfto bd used solely foil haying ieltrtnt 6pt'1jj(?tA od'~Aainfenariod ekpeNsls of ifle Sy>ttefri'y;, , 11 ; I', )'I f, ,,:';ill CJ.l.1 bbdnja YJ I 3fIiNJ J b ihfl wy Frind it .r. 7, 7 ~ {1j n ri1111 i!°I1 f ) ~ tree ({/r {Ir r!•riN~r I~I'5. ,;7f11 "Otlffitn6'~r6 A Viii` /d p"t'fjl atA2f ha 40 f t ebdnds i I '(~tt °`tiE iii , to' t~ Qe sil tCtl b'cridlt of tf i' eitli" c F Ad;`rrliiti >t f 0e i' delli~ ors , it it d tUM Y{!{~2,~, : Nd depoills` Bird ' 1it+ trioe b lh ' r'etl; bf t6b Cc~atitl~+Nt ilk' "IoH till' 'ei anxsunt of money and investments therein arcs i leabt oqual inmain it value to SM 000(the "Co Required Amount"). If and when the amount in the Contingency Fund Is reduced or depleted tQ,lfN,Fh/AIhA rn erycy Required Amoptst, then, s~ ¢elect q,&Ln st/ rqina te to rpakfr~g }he required ec it tp t credit of t e 3?t,tent t' kund tb6 edUtlonlf ded(,464 the eeki a fdld from '0sd I&P. lWh ll' 13a`ecr't :tefrf'rot t ' pp ~dd g n x b ioln` 'ff I {it b y4A,'p,'btfide4 `titdt gfi~ /ey{rf~od ~ ~`uaigri"l ie h k g/i' 0 rititi tfsl'( °fbf'I~I±tK' during a y One fiscal yta(, The City specrflCalyo e~bvbba' i that It IN A +4&~A t 2 'ahd Hih' dgysro/ each May atsd o" Leh Nb4ertthef or t tieh'yrear poch td thb Wdit'of the: Remus Fdrid all surplus to IN Contingency Fund over the Contingency Required Amount, to be used soialyrot,paying dnrrenl ,!',1'ii !i~ ibilf lfla;i'>7~!71 ~~i e; i i,n1l 'i I'lll Ii 3i?),TI'i "AI t'1 eh llllr IN?1 ~iYlh~, ',,.r f.~~.bte~9l.~p~ {I! i'i Fief I ai;il~f~ li li7'lilh~,'11Jf1~,!~ill+i 'l fl J, lUl li.+ll) I ill:1l~,'I°1'~Si ~ijl 41 lilted) The Ordinance provides that during each year, subject and.sabordinatetd making the rbquirod deposlts lA 04 61!1ii R,Ih9 R9RitSS114~~1.FNtt~t My f~W43 t.4R ePymft!ti r~9u,irCd }O pB,,FF' gAy:A ij{~rlel Ponds, the #ie1SSY4 Fytrfl +A4 4 A9)i ocy,~}ltd fGo ~',?,kd 1e, yve t7, aJl,~.p f,R rd°l9ldel ° !},to the fsR 44 4 Qf~ ~flirr9~£~>±{l}F4-Gop9i'`If~g>4~fSt~4Sl'P l4~Ru h fA!i3114~;,9 4t#f!dJ,l Oross Revenues of r e Systern, which term Is detig;A,lq ~4,Pla,}})9 1$63 FYe4 $lkp~,4149, YfEfm,lRf>tucW year, after deducting from such Gross Revenues an amount equal to I11e current expenses of operate on and 1 rnointenartd ref thb Syttcfi for such year whkh are directly. kttributabib'to (i) all fuel Hosts related to,ths prciductiori'of electrto`etterphy'the Uy'and/or (ii),thl fUchxse of eltxtrsoenergytftilhe 01y;Additional tycess Pledgaf Revenues way,' alt the option of the City Council, be deposited to t s credit of the Improvement Fund as po1'mitted by Section 20(b) of the Ordinance, but no such addfIdA dgjfb t h f3 _!i' t 1~~ t',rfis r 4 l; a ~t,lr 1i ~!7 In~1i;r? ! iii 10ltl ,,id ,i10 h; of i n NI' ! t!1 :Y75 I s ;UFn i i J:'. , I1: r Y'll fiii.l i' rS aU,al 1.1 1, i.:,t'I 7;11 hr! R7li rd ltl 1, r!" iJ.17-i r' t.!i, r-t !d s 'ate i,~( till ~'!Ul t/ 1t Ninrl i j•,t `h.e 7' r. `w F 177', t r > 4ir,otDlR$CR1PT1ON.OFliBONQ$r At I PI411 P# The Bonds will bear laterest at the rates &AA WHI Mluf4 on the date and In the amount, subject to requirements rot mandatory o e P.}oni~Byl ogp,9,3il GgYftr $y,,~t l}t4149JRF1 Statement. Interest on the Bonds will be payable on m r 6 and sem -annua y t erE tier' on no 10 and Aaomber l of each year. Principal, interest and redemption premium, if any, are payable, at th1 option of the holder, at First National Bank In Dallas, Dallas, Texas or First Stat4 Bank, Denton, Texas. The Bonds will be issued only as coupon bondilfildenomination(V 5,000 each:" optional Redemption ProvlAoa The Bonds shall be redeemable, at the option of the City on or after June 1, 1003 6 a whole or In part on any interest payment date, at per plus accrued Interest to the redemption date, Mandatory Redemptioo Provision The Bonds are subject to mandatory redemption, and shall be redeemed prior to maturity on lot or other customary 5method, at par and accrued Interest -o yredemption date, In acxordimcebwi with pthe follo ing schedule: PdWF11 'rP~ AoorM ~ Yeu i, .1.H111.1.11r1a...rlal.ralrlr,a..r.lllla.ra.111a la la salsa 1. r..r l.a rr ll.r..l r1'r `I 19B5 $ _ 198b .ra l,l ll.............. 11 .,•.1..a1,11.1..1111.....U... 11. r.a..a.Ia Hll u.aal.l. U.a.a ...rl~1 a .Il..l..llu..lla..lla.a I.Ilf.l.l..rn..l.n.l.uu.n..l.l.. u.f.ulrl 1981 I"ll ...I........ I. 1. l:. 1. 1...r.r........r...111,1..1.11...1.... rl. a l ..L.I.I..,.IL...HLI.~............I..~..L........Il.a.a~a......~........... .r.... 1989. I99o ...1..1 1..............1.......1......1.1.......1. }.............I......... 1991 I..1.1......1 ....11.,:........1......1.......1..............1.11..1..11..r1...... 1992.1...1...1..........11. 1...1 1..1......1.111...........1....1.... 1..1 1.1........1., t 1997 .......................................r.................,...................a.......a..I...;•`.;`~ 1994 ..............:..1..................................1...................1......................... 1995.1.. ..10.......II...I..aIIIII. N,I 149b , . yy~ .1.1.1 ...........n.,.nH(.Ia.inaa au1.1.1........... /(RK W .,........11.....r1..........-I....:..II......1..1......;.....1 ...................1......,....!`\.r ~ - 19.98y~............I.II I...,.. 1.............. 1 .I................... 1~19 y~/ ...........................1...........1111........1. I..........1...... 1..1... 1 LII.a1..I,JRY1 ~ , rMMY.'iv ..L.......IN1..1 ...........:..1..... 1......1.1...II......I.I...... 1...... I........... I,I.. YI) r. 20)l ..I.1.....IH1....1..1..1.....a......11..aU.n.l.naal.a uu11. 1 ........................1~ 'I 202 I... I.....lu•••.....nll•............... ....1......... 4...1.1. I........nl..... I..r .1.....1( y 2M3 ..I .....................................I I ...i.I....1.I.1..........,I1. 1..... 1..I ......I.. 5r1.'.. 2004 ..................1 ..1 ...I ...1.1.....1...........1.......411 .1 4144..........1.....4 I ly" 2005 .....i .........11.....I..I.I ..I.1 I... LI1, I.. i..1 .I,.1..... I... L.11.. 11 .1II1.I 2/~,/,/{~/~( 1l~1 ~ ~M .11...11•...11..1.1•II1..•11...11.11 •111 11 .1 I.I.I ll.l...f.11..1.11..•....••1.111..1.111 1 , I...II.1............H......11..1.1.II...1...I IIL....II.I I.II..........I..I r...l.1..., 2001 r il! Y? I r ECIIEDULE ($F" IEP`lr SERVICE RNUIREMENTS CITY OP DENTON E ectrIt s st r e!rs Rer'~nue RetundlnR Bode; S~r1e~ `i97A " Ynr Wing Pr{acipd t Note latereN ~ ' 1978 S % s 1979,' 1980 1981 1982 3 i 4. r; f` 1984., 1985 .r ~ r,.,, t .e;,c~ ,+•r- rr:~, 1986 rr 1987 r' 1988 S 1484 ' 1990 f~l 1991 ..~;Y~F.U,r 1992 1992 } 1994 r 1995 ,..a,•1~~,' .1996 1947 1448 2000 r H r( 201" 2002 2002 _ 2004 2005 , r M' r 2006 2007 9 „ °'fiHE SYSTEM ~ . ill J. 1 ) I ~l a filie c ay oC betl~brl has titivri6d°shd o etai$d' Iu' VlecCri "Ligg~~i 04d Polvrr $y~te~n iq' ~~Pro irit~{eta seventy years without, interruption. During this time the"~ysteni has ex*dcnebd a heady` gaOwth In customers and output, requiring periodic additions to plant and distribution foclliliel. Prcunt facilities are valued at 544,994,726 less aceumulated'depreciatl0n of $17,667,170. Service arts ThoSystem,, provides clcctlic service to 15,167 customers locet~d In the City. The City has covenanted that it will not operate, and will not grant any franchise or permit the acquisition, construction, or operation of, any electric energy distribution facilities which would be In competition with the electric sysitm, and. to the extent that It'legally may,+the City will prohibit any such competing radlitlls,l Cuslorpersf In The vent06 Electric System sold 450,928,000 KWH of Eleotrfc Vnerthe to 1o ng tabulatio shows .~e aver* number of customers from 1975 through 1977, and }he a~tfa'ge Charge per kilowatt oil("ICWH"} > } 1973 1914' 3,'t `Av€RAos NuMOR OF CUSTOMERS '777"T it Residential 11,030 U-61581 12,445 Commercial and Industrial ....~;.L;t.:,r.tl.isai.: 2,038 2,254 2,410 Other.,,,.,,,„•.,r,;,r„t,.~ •,r,r......... 312 fotl►I,~+,stomers::,:., 'ST h ~ 1011.4 13,341 1412 567 AvERAGs COA149 PER KWH (cents per KWH) Residenr'+v! 'i,U9 3,68 21 4 >r it All Oiht.ti.{1J vi i.l ( ' '..,...n.u..t.,i,.. .....•.tir..i.',5...1.{....•... 2.05 2.10 0.52 . , i S{ysterW? .Ajes,of energy, t1r K , top5igcip';4'customer classes ~or•},97~ t11r4N$~ (~71j ~ 'er~v 41 a c XWH SoM C f t ~a GI Ve I f ~'rti ! ii rt't f , -wt ti YeuF~ *71y ' H7S ' N1s l ResWential . 105,203 112,701 IA9SI1r >.ill CoshM;6ecl4l and Induttrial............r.{'.F..,J.... I........... 216,168: 248,156, 295,011 ftherSF~lt,:,,.,,,,.,. A P'........... ij:y 3141 12I.964 v I Total Sales .~i . ,i:L.. 402,416 419,176 4$0,928 1 1 f°N1,?Qi 1?~~);(U tfei,~awl! ~(xV,~li. qr n'il~ it 'e7 %d 4'! .~4f .{L•Jr{ ~M addidonl;(4'~Jviding eW614icnergy (8r customers 16 tho City, the City ~t;~a I "whof ate lutes of electrical energy to Bra:ot and other cities, aggregating 62,314,743, 64,274,239 ahrl ~9,1314,30~ kWu6ting j 1913, 1976 And 1971, respectively. The revenues received for such safes duri the sanle'ptildds` arc $1`15',493, 5700,02 ind Sb60,S65;'rdspectlvely `~~p, !„~.''3 i•; tr ~rl ,;,i,,l~,t~ ~g:rr~~I. t A ,7 Ir ,r ~ I~ >'rnol~v i rya,! Iy f~! ~~Y 1J7rU i i ar hf A tNi9 10 .i r, r wit" The following chary provides 11foem4o"";for-c61e4dar y,%ar 1917 for the system's ten largest cus rA efii, In tqr is of h peak Oemt«tdl:ind anngal Sevenues, Thew customers taken toget¢eS repiesent 20 ~96;0~ tliq, t9t~ elect revbitue~ Uo~' .;lee ' PF,NT" ELE,CT911C SYSTEM_ LARGEST POWER CUSTOMERS it" Pril IM Ahna1 Crtroaw D,*-*W KW 'Rot" I ir.7, r,'fl"' ~ r North Texas State Unlvercity,:,.3, ,iIol..,,,,;,,,,,,,„~„ 115,015. 521558,76$ Texas Womans' Unlversity 5;009 172,781 Acme Brick Company, .............................................................1 2.9087 360,1524,•n.•~~u 'I , 1 tpn, rStatq ST1"',wt,, ,I...~1,. ! Al , {P1N11 f, 1. 1 l .2'24;, ; . 12761~Tj VIc~g~ ulpme>! Moore 1. I,r ~ 1 .rri-2r 41 Moore Susineas ~orms, Inc, ; 3 , Emconite Division of Amerace.... I,Oi4 l'3'1334 I' Morrison 826 121,960 Westgata Nofpitai,; a 786 111,423 Flow Memorial Hospital ...................~,,.il,,,..:,J.a l r .118 „108,098 ,sf l l F'' ! l', " _ WATISTW4 pATA . j I - ' Ytu E.~It! 6yrtwatr 30, .'t i,~.(1 ' l 1, r-M [,Strr.'S l.l~ r;.ty7 ti', 1 i 1.1A1.i, 7 ~,.YA.411 Sales of KW.13: v t r ,;.r r Residesstisi,f,,, l,.,.... i,l........ „ 13319511296. 112g~00,$8 105,202,684:r 106,2Y,511 Co,nmercial and Industrial 2 016,833 2 S6 7 16 W L31,315,273 r J , ,,f 428,968 149, $6,987 38113 0603 , ,1 7 3,784 4,3f2,..1 ~ 56,016`1ir6~ ► ; 1,«;.. 8 Wer (resale) S9_ , 514.302: 64214239 14,239 623147,45 14.745 122 7,i' To rAL BILLINO 49~ 3_ 9 70 3 444 4 8S 20 2 2 Loss and Una 4k4~~4 13,669,069 18,229,747 24,636,240 27,8861949 Total KWHpYystema,r.; 41 019 38 519 21 ! 96 Loss and UneCCPytA,tf3.0796 3.7596 S,I 3.4146 Average Mohlbly; IU`.'.11 F j ,<t't it+rrltd-JA Residential l;, 1.11So1i,al L-", 'I1,030u,r, i 10,830 Comm.rcial adJ II1Sdt1~I~!,t1 ;It_1.,t~ ,,~41t, 2.038)3+r1;: 1829 Total .6'1 wa..,4t'A4.tt, t 14,833.. , 13184! 4,13,068 .-1 12,679 Peak Day Power Requirement,,,... 112,000 106,000 106,000 103,000 Prfsent' Plfn Ca l~crtry 1 J i:r;e 9 urJ'nyt a z ~'n rii 1 dl rt'urr,I 1S6+~~rF1j Ji ~61~ P0f, ;'rf,~¢' 7;10 i,u-ll3e. ~,~6,580 !~~tJ!l1V~'k (jg11if!81.~'fs{~~~[ 7~r {.I(,f.l.tlilfjli1411,~.ri7J7"1(~r~l r,:~Y,r{~,rl'j'~ltt7~f.Jfl)','J~ ^10 g,~S~IIU(1 r"J(t-7 "1., tl!~ t!'N f'J.171 P,ff1:7'11 .fl~1 (~9llliJ lrit tl~l bV, erbl ?S I Average Monthly KWH per Customer.. 2,406.,;,,i:yr1,2,4 3.,- k;,, t.r'2,43,7„t»1 ; {%r~tJlO Bill per Customer.,.,. $ 89.89 S 71,17 S $6.81 S 42.54 Revenue per KWH.,. S ,0373 $ .0298 $ .0234 $ .0181 RettdenNa! Catronrta; Average Monthly KWH per Customer„ 897 oil ?95 816 Bill per Customer $ 37,90 S 29.91 S 24:31 S 19.15 R;tnue Per KWH S ,0423 $ 10368 3 G:310 $ .0242 11 ;n M11STICAL DATA (C 416M4) IM 1976 9f75 1974 Commercial and Indusrriab AVejage Monthly KWji perlCustomer.. 10201 10,654 11,292 11,450 Bill per`Customer...r. $358.33 $268.09 $231.29 $177.70 Reverr per KWH $ .0351 $ .0270 $ .0205 S .0155 Gross Income: 883 S 2 S7 Residential mss S 5,660,433 $ . 4,145,394. S 3,25102,051 Commercial and Industrial, . 10,363,040 7,792,387 5,656,377 3,900,264 Municipal and Street Lighting 790,527. 539,277 268,138 ',245,664 Other....,..... i 894,273 927,955 336,671 •501.265 j; 17,708,273 13 3.405,013 S 9,513.069 $ 7,219,244 ELECTRIC RATES RMDENTIAL ' (F.fkctlrESeptessfei.~ 175) ' Motifs of 1~sy "Wo~af Onattn: Firs[ 50'KH f3.15(~vinimum) Next 75 KWH 0W P" KW*H , , Nelr1, .~S KAYj~ .0341 per KWH Nexi SW KvVii 0256 per I:W14 Note: When usage exceeds 7G0 KWH per month, billing is rendered at a fixed cost of 54.40, plus all KWH ® $0.0275 per KWIWMo~ebof Naessbe. ttroraf AMeil: ' First 50 KWH $3,13 (Minimum) Next 75 KWH ` .0409 per KW H Next 75 MW ` r .0301 per KWH Ail additional i .0256 per KWH Fad Adjustment Clan"' 10 All charges of the taet monthly rate willbf increased or ddS0.0122 per KWH for each whole $0.01 per KWH by which, the average cost o(fael and in the uti4ty'.0 electric gener~ting plants plus the cost or purchased energy during the calendar month next preceding the billing month is above or below $0.01 per KWH. Such average cost is determined based on the sum of net KWH generatgll4.Shfity;i{ plyo4saafl) the KWP purchased during each said month The colt of purchased energy does not iriclu~e demand c~targes tr i','renlel chargK for i~INtltie's foE ~iurchaeod ,Qb+~ d , r, . 12 Projected !1.0143 and Resoarees e i The projected loads and resources of the Sys'om for the period 1978 through 1987 are presented in the following chart. , , . FORECASTED PEAK LOADS AND RESOURCES (IN MEGAWATTS) Net Ittsime Peck La/s Rewrtcee Mer{li 1961 13` 179 24 1978 179 16 1979 150 179 8 1981......... 4. 162 192(1) -58 46% 1982 .....'r.,...,........ 1 187 74 267(2) 281(l) 34 . 1983.........., 201 281 24 ..1984 201 1985 217 28f 234 281 N.A. 1986 . . . 35 3 N.A. 1987. 253 6() (1) Commanche Peak participation 13A MW in 1981, 13.4 MW in 1983 (2) Reflects participation in Gibbon Creek, 75 MW 1,: 1982 (3) TMPA unit scheduled in 10 year capital improvement p!an (,Denton share 75 MW) Sammary of Operations The following table stimmarizei the operating results of the System for the jt-.rs ended September 30, 1966 thro4 49)1. year Fdi Net AtaOe St}te for DtW SWke ~ 70, Rnem Etpene_ 1966 $ 3,072,862 S 1,291,00 $1,781,212 1967 3,167,)A3 ,1,468,37 1,698,650 1968 3,289,834 1,579,949 1,709,896 1%9' 4,001,273 1,730,508 2,270,765 1970 4,591,880 2,102,430 2,489,450 1971 5,0}4,960 2,252,483 2,782177 , E . 1972 5,661,266 2,495,1 l 1 3,166,155, 1913 6,479,095 3,406,265 3,W2,830 1974 7,416,123 3,946,751 3,469,372 1975 9,763,787 6,476,667 3,287,120 i, 1976 ,;13,669,854 9,6151637 4,054,217 1977 1',942,9)6 ' 12,613,316' 5,269,660 Coverago and Fond Z3al~blea a a , . ~s 1917 to+tbc Jebt The ratio cf the Net k6enub o~ t it System for the fsca! year ended Scptemb~r 3tf, service requirements of the System AI, fuels fiscal yeAf wni 3.81 to one, The ratio of thhe Net kevenue of the tanding System for The same fiscal year tq'` `P1998 Is 4.59 to one. The amount atrFebruary 1, 1978 In tthesReserve Bonds for the fiscal years 197b thr~, Fund under the ordinances pursuant which the Outstanding Bonds were Issued was $2,156,5779 and the interest and sinking fund payments to be made therefrom on !!.it next interest payment date under such ordinances was $731,668. , 13 1 r t Prodgctim Facilities and Intercoosectlou Arraeti neat Present productiofn facillities'of the"System c5nsist or ten generating units described as follows: ' Naas Plate Type Noo(Volts KW Diesel 3 12,635 Steam Turbine 5 Unit 1 12,6, §0 r lJgi 2 12 (j'ait 4 ti,161 f Unit 3 83 10 186,580 Denton's Electric Utility System is connected to the following other systems: Texas Power i& Ligkt - 1 -69,000 volt circuit - 2 - 138,000 volt circuits (1979) Brazos Electric Corperative - I 138,000 volt circuit,' i - 69,000 volt circuit' Irk' City ,is a member of the texas interconnection System, an intra-state network or sii.malor intesldr•owned`and four public 'syst'ems, and. of the Eiectric Reliability Count4i of Texas ~ERCtO1), the regional Reliability Coordinating Organization for. Electric Power §ystems in Texas. The City has securod additional capacity throulu its membership in'the Texas Municipal Power Pool, 'which includes the cities of gryan, dailand,'Greenvi&'and benion, each of which has its own production, tiansmission`and distribution facilities; The Texas Municipal Power Pobl,contract provides that each member city shall provide, through its own facilities 6r through firm power'contracts, a capability at least IA greater than its pro*tod system peak load for each future year. The method of l0 projection is uniform fo: tl1 members, and the costs of 1'00# facilities nocessary to provide adequate ties b6iwmn the members arc shared"by all the participants. By 1 1. ;ill, the resetbe capaeityof their respective systems, the cities can opera(e aPeI, w''th considerably less inita11' rsserve slower supply', thiteby effecting substantial investment arn3 operlting ecopomies. Other advantages include an adequate and dependable source of power during periods'orindividual emergency and maintenance of power during periods of scheduled unit maintenance. The Sy #m currently pl~ rchases ceppioxim'ately `4096 of it eloctr~caltistu.+rgy a4b,fements floM the C{ty 11 of Garland at a lcssrr pima ihxn It would OAt to generale the same energ} ivithln the System. There is nil j assurance this arrangement will continue. PUIUt'! Setrke' Itegnjrlnuhts ` The electric generating facilities of the System could be expanded to supply its electric power tequirenxnts through 1987, altbopgl a report prepared by,manvgement vgi~sultants on behalf of tbp City concbJda iltat it,would 6,t t;lwoopotnlc to do so.:rwttr, the $ystftn`s genrating facilities arp,norY,fueiod by natural gas, and the Texa; Railroad, Cgmmis:i9n in t9 ~6 issued an or3er that silk electric generating plaats,iA the State mast on or before ,January Ii 19$I and on. or before Janary,l,,14 S redu their consuinpilon q natural gas,by 10% and 2596, respectively below their 1974 or 1413 level of usago, w4lcheger was grater. A recent study completed by Black arid Veatch (the City's electric engineering consultants) concludes that the 3 largest steam upits, could be converted,for 100% operation using #2 diesel fuel;at a cost or, 5400,000. In order tg feet late rrquir nenta of the texu Ail' ion, ordcf..an tP proviso tot additional generating capacity, the City, together with three o6cri ''texas cities, Bryan, Garland, and 14 Lye, a Greenville, organized the Texas Municipal Power Ageocy,to develop an electrid energy generating syttcfd capal? in the needs of, the four 'Uea through 1986, A atajQr. pall, of this system Inv Ives the le of. ni?. 8 t , St.. development of a 400 megawatt lignite fuelod steam electric generating plant and the acquisition O9' (ignite strip mine and related facilities adjacent to the plant. The total cost of this project is estimated at approximA61y $786'million; and the Agency has to date issued $50 million dollars principal amount of its revenue bonds to finance the initial stages of the project. If tut Agency completesfthe project, each of the four cities will be required, under a power purchase contract atr`eady entered into, to purchase from the Agency all its electrical energy requirement in excess of the amount by the generating 1.6lities owned by'it.on September 1, supplied solely, with certain exceptions, , 1076, and by 60~ ties in which the generation of electrical energy is incidental to solid wits disposal. The consideration` fob such energy in the case of each of the four cities is its share of the Aget[q'i cysts, including debt service, based on such city's proportionate share of the total electrical energy requirc&lents of all four cities, whictiln th'e' City's case (s 20.34%. Each of the cities has guaranteed their proportionate share of the Agency's bonds. The cost to each of the cities would be increased by its increased share of operating tie facility (other than debt service) in the,event ooe or mote Qf the cities fails tojiyv up to its obUgatiogs under ains the purchase contract. The contract, which is Included as Appendix E to this Official Slate ent, a naval provisions for; Im' 6Kg othet ii A&, the approval of future ttiojects of the Ag'tncy by the pp on of the Agency's power. output in, the event of sh?rtage. of budgeting and operations, and allocati The Agency's facility, which is now in the initial stages of construction, is in Grimes County. In late 1977 therimes County Taxpayers Associationt ,though the t'~ounty Attorney and on behalf of the State of oilrts etta kin the vahddy of the A$cocy e~ Its bonds on Texas, initiated a IiUgatioti is the, Texas 04;6" eo"nstitutional,'ggd statutory stq' Ms a'4d ~iddid P'jilljF'a fac Cld the V'iUdity'of its bonds on the grduitd thpt the Agency's, a<ut6oriiin act"one did pot ri#t stir, tutory rfgytti8men6: lnat coiTrt town to the Age4e'y' gg the C'b rt 1,4 li" o i1 , faYO?, and on January 26, 1M,'an gppeaf'w'ars argued in the te,kU tivnl Court o[ Ap' 1s Civil Appeals rendered judgement and filed its opinion under date of March 2, 1978, finding there "was no error in the judgement of the trial court and that the judgement or said court be in alk,things affirmed; and further, that the retators, jointly and severally, pay all cbsts,nncurred by reason of the, appeal.; The same association initiated an action in the U.S. District Court for the Southern Miriift of 1<'exe4 (He~~ ion Dnvis'ion) against the Agency, and the'Adminjstratorlehd the tct o R~t=111~1 Adminis 816r of the National inYkgmental protection Agency; alleging failure to,., comply with licies of t e National Envir'onmcntel Protection Agency „ While no prediction can be madp' as to the outcomi" f ary partlcutar legal action, the City'Attoroey'of tkf City of Denton believes that, meritorious defenses pre available to sustain and confirm ludgemdcnls of the e r , ,t e 9 l A l !V Y tna{ courl`a>tid„ap$y11a(e eoifdorje", an l h favotkble qutcoitie towtaril,`t li gene;( #k !t`t ° s r , ' N~ , shoo not tvr{; t [woo d romote. In aadiuon, said cou'nset s of the opinion dial', eiiein if the Ag~(icy pr have no contractual obligation in respect of the Agency other than to contribute its atlocabl'e 20:3a1b pb a`nn (averaging approximately $725,000 per year through 2011), of the debt service on the Agen£y4sptgtj >4 $50 million dollars of revenue bonds rcfe-red to above. ~,.r Jq 3~i.>:~7 r~; (t'{•t E,t Ja! {y.%4 :a,. J'ri''. 7'-, , ' ' :13bnd Cbtlnstsl fot'ihe l:itj~ of Denton Is'tif ttiei'dpinion that'iich i3ty ta`rfot bbGgatbd Ukde'r the Powt? sates` Cbntrric3t'TivitN'the' Jtge'ntj t6 `0iij'*d:r'thi{i'1ts altocebk10.34%` ftioof the`aebt'servU ytla e'i`d ,lllion of 66nds!A thp'evEiit 41sE A96-0t14 , isWe'10616hal regini#ctncnti' k the A'grncy`s S50 rrt bonds td cd6plete'ilie Pi61&i'o'rIothdr*lsC failiido' wnsttucttb6 facility'6atd'provndi w,tbtrewm. $ond Lounsel.'foi the' City U DihtdnI also ls'of the opinion that, ir'tha APcrlty' should1 ba th'eld`Invslid,'or Is otfitf*ise'unable to complete the project, the font'cides have the lip aiJtbornty,'tii6uld theji desire; t'd pro46d`ditectly (K c0cert`tc finance th'edtvelopnitnt b; tht'facitiiy't,bw being de ilo* by M'Ageocy.In any event, he management consultants report ppreviously referred to concludes that the power that would otl,eie be'jiuiclfasetl front th! Agfn{otlki be 4{u4cbtsed liocn'An a)tiKna.te loufce'of electrieel'energy. is r SUMMARY OF CERTAIN- PFOVIS10NS OF THE ORDINANCE There follows a summary of pertain provision; of the Ordinance. It does not purport, to be complete and, for a full statement of all matters of fact relating to the Bonds and the rights end obligations of the holders thereof, reference should be made to the Ordinance. thfigltbas , The term "Additional Bonds" means the additional bonds payable from and secuted by a first lien on the Pledged Revenues permitted in the Ordinance to be authorized in the future, The teens "Electric Light and Power System" and "System" mean the City's a istirg electric light and power systera, together with all future extensions, improvements, calargements, a additions thereib; kid all replaienitrlts thereof; provided that, 66twithstanding the fotegoing, and to the exmnt now or hereafter authorized of permitted by law, the term R+~ tttdt shall not mean "any electric light and power facilities of any kind ('including any electric pi generaii` ,,'ynd transmission facilities) which are declar.'.d not to be'a part of the System and which are acquired or caastructed by the City with the proceeds from the issuance of on , "Special Facilities Bonds", which are hereby defined as being spaial revenueobtigad id rite City which are not Bonds or Additional Bonds secured by and payable from a first lien on and Pledge of the Pledged Revenues, as hereinafter defined, but which are secured by and payable from' eny other liens on and pledges of any revenues, soi or payments, including; but not limited to, (i) special contract revenues or payments received froth any other legal entity in connection with such facilities and/or (ll) a lien on and pledge of the Pledged Revenues junior and subordinate in all respects to the lien and pledge in favor 6f the Bonds and Additional Bonds; and such special contract revenues or payments shall not be considered as or constitute Gross Revenues of the System, unless to the extent otherwise provided in the o}dinance or ordinances authorizing uie issuance of sdch "Special Facili ics Bonds". The terns "Gross Revenues of the City's Electric Light and Power System" and "Gross Revenues" mean all revenues; income, and receipts of every nature derived or received by the City from the operation and ownership of the System, including the interest income from the investment or deposit of money in any Fund created by this Ordinance, excepting only the Retirement Fund. The terms "Net Revenues of the City's Electric Light and Power System". arej "Net Revenues" mean all Gross Revenues `after deducting and paying the current expenses of operation and maintenance rt the Systemtineluding all'sataries, labor, materials, repairs, and'extenslons necessity to render efficient serviice, provided, however, that only such iepairs and extensions, as in the judgment 'of the City Council, reasonably i<nd fairly exercised by tho adoption of appropriate resolutions, are necessity to keep the.System in operation and render adegtitte w4ce tb said City and the inhabitants thereof, or such`as might be doctpary' td meet some physical accident 6t tj rhdition which would otherwise Impair the Bondi or'Additional Bonds; shall be'deducted in determining "Net Revenues Depreo`a}ion shall never be considered as in'expease of operation and maintenance. The term "Pledged Revenues" means the Net Revenues, plus (1)'any additional revenues, lncAftte, i"pis)di 6&1 resdtirai,'inchtding,'withVrtlimitation, any gtants,donations, ar incoriie"receided or to be rocelVed froth the Unites Sta`tes~overnrrient, tit a`ny Outer pUblib Or lriVitt sourctl; whethei pursuant to ab'aigr&ntent dr otlrerJJise; whlclt in the future May, at'th'e"optlob of the City, pledged to flit pa'YAcr t bf+ the Bonds or Additional goads The terns +'year" meahi the repiat fiscal ylkr used by the City in connection with the operation of the System, which may be any twelve consecutive months period established by the City. 16 r •_1 r , _ n .i .nom r ~ • Pledge of Revenues The Bonds and any Additional fonds, ad~ the interest coupons appertaining thereto, are secured by an revocable first lien 'on'atid pledge of the Pledged Rev~6ues. (Section 8.) Revomue Fund The Ordinance provides for the establishment and maintenance on the books of the City of a special fund C 'Revenue Fund"), to be accounted for separate and apart from all other funds of the City to which all Gross Revenues of the System are to be credited immediately upon receipt, unless otherwise provided in the ordinance. All current expenses of operation and maintenance of the System are payable as a first charge against the Revenue Fund. (Section 9.) Pledged Revenups,Fund For the purpose of paying the principal of and interest on the Bonds and any Additional ond , as tthe he same come due, and to provide the source for other payments and deposits, the Ordinance provides establishment and maintenance of a separate fund ("Pledged Revenues Fund"). (Section 16.) Series 1978 Redd vent Fund The Ordinance provides for the establishment at the First Naonal Bank agent for the Bonds, and accounted fortseparate andlapart f om all trustee and escrow agent, and as a paying 8 B other funds of the City, a separate trust and escrow fund to beentitled the "City of Denton Electric Revenue Refunding Bonds Series 1978 Retirement Fund" (hereinafter called ~ a ntemiS t on the Fund"). The Retirement Fund shall be used solely for the purpose of paying the principal the same mature and oome. due, or on redemption prior to maturity, at the option of the City. and shall constitute a special sick ng fund for the Bonds. Concurrently with or as soon as practicable after delivery of the Bonds the City shall enter Into a trust and escrow agreement with the First National Bank in Dallas (hereinafter called the "Series 1978 Retirement Trust Agreement") which shall provide for the payment of the principal of and interest on the Bonds as the same,conic due, and the investment in Government Obligations of certain money deposited to the credit of the Retirement Fund by the Citp,Citibank, N.A., New York, New York will'- a a party to the Series 1978 Retirement Trust Agreement for the sole purpose of supplying certain Government Obligations as an investment for the Retirement Fund. The City shall make deposits to the credit of the Retirement Fund as provided in the Ordinance. If Additional Bonds are hereafter issued, separate special invested retirement funds (similar to the Retirement Fupd) may or may not be established, at the option of the City, for the special benefit of such Additional Bonds at apaying o amt therefor, but the Retirement Fund is created solely for the benefit aid security of the Bonds, l however, that all Bonds and Additional Bonds shall be equally and ratably secured by and payable,from the Pledged Revenues deposited to tht credit of the Pledged Revenue Fund, without preference or priority, and the Bonds ate entitled loan exclusive claim on the Retirement Fund only after the deposits have been made therein as provided in this Ordins nce. Under the ordinance and the "1979 Retirement Trust Agreement" the City will be required to have purchased and deposited in the Retirement Fund by December I, 1995, $17,500,0000 in principal amount of Government Obligations bearing interest at rates in excess of the highest rate borne by the Bonds, and all Bonds will be secured ratably by a first lien on such Government Obligations. Reserve Fund The Ordinance provides for the c'stablishment of Oe "Reserve Fund", solely for toe further security and benefi, of the Ponds and any Additional Bonds which are payable from and securedby a first lien on and pledge of thq Pledged Revcnllea, The Reserve Fund,tnay be used solel ncifot of pr'F ► s~(Pn a~finally Rrortins ~s or the last of the Bonds and any Additional Bonds and (ii paying p pal f P 4. Reventies Additional goods when and tolue eaten he a oun~ nthe ►mp(oY~ement fund, and Contingency Fund are any other speci ,at fund created_ pay Addition insufficient for such purpose, , *Subject to change. 17 The Ordinance provides that promptly alter the delivery of the the city shall cause to be deposited to the' credit of the Reserve Fund, from proceeds from the sale and delivery of the Bonds, the amount of 52,250,000, "(the "Reserve Required Amount"). When and so long as the motley and investments In the Reserve Fund are not less in market value than the Reserve Requited Amount no deposits need be made to the credit of the Reserve Fund; but when and if the Reserve Fund at any time contains kim then the Reserve Required Amount, then, subject and subordinate to making the required deposits to the s tedit of the Retirement Fund and any deposits or payments required for any Additional Bonds, the City sl all transfer from Pledged Revenues and deposit to ibe credit of the Reserve Fund, semiannually on or bekre the 25th day of each May and each November, a sum equal to .1/10th of the Reserve Required Amount, until the Reserve Fund is restored to the" Reserve Required Amount. The City specifically covenants that ij will, bctweesi the 20th and 2Sth days of each January andlof each July of each year, deposit to the credit of the Revenue Fund all surplus in the Reserve Fund over the Reserve Required Amount. (Sections) I and 17.) Contingency Fund Tho Ordinance provided for tlx creation and maintenance o.fa separate fund ("Contingency Fund"). to be used solely for the purpose of paying the costs of unexpected or extraordinary repairs or replacements of the System for which System funds sre not otherwise available, and principal of and interest on any Bonds or Additional Bonds, when and to the extent the amount ire tli~•, Pledged Revenues Fund, the Retirement Fund, any other special fund created to pay Additions! Bonds, and i&- Improvement Fund are insufficient for such purpose. (Sections 12 and 18.) Iraprorement k~and f The Ordinance provides for the creation and maintenance on the books of the City, a separate fund (the "Improvement Fund"), to be used solely for the purpose of paying the costs of improvements, enlargements, extensions, a4diti6ns, or other capital expenditures „related to the System, or for paying unexpected or extraordinary eapenses of operation and malntenance,of thee ystem for which System funds are not otherwise available, or for paying principal of and interest on any Bonds or, r Additional Bonds, when and to the extent the amount in the Pledged Revenues Fund, the Retirement Pund, and any other special fund created for the payment of Additional Bonds are insufficient for such purpose. The Ordinance provides that during each year, subject and subordinate to making ti, required deposits to the credit of the Retirement Fund, any other deposits or payments rquire for anr Additior~aLBonds, the Reserve Fund, and the Contingency Fund from Pledged Revenues, the City steal) be required to deposit to the' credit of the Improvement Fund fr'om' Pledged Revenues an amount'"equal to 8% of the "Adjusted Gross Revenues of the System", which term is }iereby def4nod to ~t teen the following: the Gross Revenues of the System for such year aftet deducting from such Gross Revenues an amount equal to the current expenses of operation and maintenance of the Syst;m for such.year,*hkh art directly attributable to (i) all fuel costs related to the production of electric energy by the City and/or (ii) the purchase of electric energy by the City. (Sections 13 and 19.) D~osit},o[ f'ledgesl Rereanes; la~esttpeAt,gti' Funds The Ordinanca requires deposits of Pledged: Revenues to be made into the Retirement Fund, the Reserve Fund, the Contingency, Fund `and'the, lmptovernent`Funrl created under the Ordinance: The Ordinance also provides that mono in any fund established pursuant to the Ordinance (excepting the Retirement Fund, which shall be invested only in Government obligations) may, at the'option of the City, be placed irl'time deposits or certificates of deposit se zvd by, or invested in, direct obligations of the United States of America, obligations guaranteed or ivurod by the United States which in the Opinion of the Attorney General of the United States are backed by its full faith and credit or represent its general obligations, or indirect obligations of the United States of America; including evidences of indebtedness ;,sued, insured, or guaranteed by, gavernmcntal agencies Such investment; will be valu4<1 by,the City in 16 k terms of current marktt value as of the 20th day of November of each yeat, All interest and irtuome derived from such deposits, and investments will be iminediately credited to, and any losses immediately debited to, the fu:td from which the deposit or investment sins made, and surplusts in any fund shall or may be disposed of In the manner provided in the Ordinance l.rth respect to such fund. Such investments are to be sold promptly when necessary to prevent any default in connection with the Bonds or Additional Bonds. (Section 14.) Security of Funds The Ordinance proviL:s that money in in funds created under it, to the extent nAL invested,'is to be secured in the manner prescribed by law }or securing funds of the City. (Section li.) Debt setrlie, ttequtrenumts The Ordinance provides that promptly after the delivery of the Bonds the City will cau to be deposited to the credit of the Pledged Revenues Fund any accrued interest received from the sale and delivery ofthe Bbnds.,ln Addition, the'City will tranifet from'Pledged Revenues'in the Pledged Revenues fund and depoett to the credit of the Retirem2nt Fund ion of before the I st day of December, 1978 and semiannually on'or before the 1sfday's"of each June 'anil q* December thereafter, such amounts as then will cause to be on deposit to the credit of the Retir'emMt firnd: (i) money and/or (ii) par or principal amount of Government Obligations owned by tl•e City maturing not later than November 15, 2007, and bearing interest at rates exceeding the highest rate oorne by the Bonds, aggregating the amount, respectively, on each date, respectively, shown on the schedule set forth In the Ordinance: Said schedule is intended to set forth the full aggregate amounts which are required to provide for the payment and redemption of theprincipi l of a'rw interest on the Bonds as the same mature and come due. However, it is'anticipated that the interest income from the investment'of money In the Retirement Fund In (lavernment Obligations will reduce the amounts which otherwise would 'be required to be deposited from the Pledged Revenues Fund InOrder`to cause the Retirement Fund to contain the required aggregate amount on each required date as shown in said schedule. beficlendes; Ezcess'Pledged Reitstim The Ordinance provides that if on any occasion there are not sufficient Pledged Revenues to make the required deposits into any of the funds referred to above, such deficiency will be made ,up as soon as possible from the next available Pledged Revenues, or from any other sources available for such purpose, and that, subject to making (on a timely basis) the required deposits to such funds, any excess Pledged Revenues may be used for any lawful purpose: (Section 20.), Payment of Bonds The Ordinance provides that on or before December 1 1978, and semi-annually on or before each Juna I and December I thereafter while any of the Bolds kart 'butsti<tidingiatkd unpald, the C14t),41 mkki available to the paying ageoAs therefor; out of the Retirement Fund, any,other spoal fund treated for the payment of•any Additlofal'bonds, 'the' Pledged Revenues Fund, or"from the Improvement Fund, the Contingency Fund, or tlA Reserve Fund, if necessary, money sufficient to pay such interest on and such lmncipal of the Bonds as will, then accrue or mature, The' paying agent; will destroy all paid Bonds and the coupons appertaining' thereto, aryl furnish the City with an appropriate certificate of'caocellation or dbttuction: (Section 21.) Final Deposit!; Goveramentai Obligations " lie Ordinance providet that shy Bond of Additional Bond will be deemed to be paid, retired, and no longer outstanding when payment of the principal of and redemption premium, if any, on such Bond or 19 f r 'fi't Additional Bond, Plui interest thereon to the due date` thereof (whether such due date be by reason of maturity, upon redemption, or otherwtx) either (i) shall have beep made'or caused to be made in accordance with the terms thereof (including the giving of anyrrequired nonce of redemption), or (ii) shall have been provided, for by irrevocably dpposit;ng with, or making availabi % to, a paying agent therefor, in trust and irrevo_+ably set aside exclusively for tiuch payment, money sufficient to make such payment or Government Obligations (as hereinafter defined) certified by an indri)endent publip accounting firm of national reputation to mature; as to principal and iaietest in such aatounts and at s44times as will, insure the availability, without reinveste~ent, of sufficient money to mike arch payment, and, in each apse, ail oeccwry and proper foea, campencati~o, and expenses of pucb pa ng ayien; pertau}►ng tp the_ Bonds and Additional Bonds and with respect to q such deposit is made shall gave beee paid or the payniipn thereof provided for to the satisfacttort of rich haying agent. At such time as a Band or Addttional load is deemed to be paid bueurider, a~ ar~sStd, it.vnlt no longerbe secured b of endtleid td the btAtlltti of ttie Ordinance or a lien on end plodge of tlr: liiedgid Revenues, and shall be' "Ie itied tie ~aymeat Solely,irdm such money or Government tiObllgitions. ("Govement Qbligatians': "For thisprpose meS¢s'dttoct,obligatioos of the Unit , Scales of meric>i; inclu li g' obligations the pnrc'ip'a) of Sad interest on which art unconditionally guaranteed by th+s United States of America, which may i+2 in book-entry fdrm and which are non-callable by the Obligatirn.) Any moneys 'so 'deposited with a paying agent may at the direction of the Cny also be'tiivested in Government Obligations, maturing in the amount and times as hereinbefore set forth, and all income from. all Government Obligations in the hand,- of the paying agent pursuant to this Section which is not requia'ed for the payment of the Bonds and Additional Bonds,' the redemption premium, If any, and Interest thereon, with respect to which such •noney has been so deposited, will be turned over to the City or deposited as directed by the City. Additl6aal Bonds r Pursuant to the Ordinance, the City has the right to authorize, Issue, and deliver; in one or mote series 11 or issues, additional bonds ("Add?Ional Bonds") which may be payable from a first lien on the' Pledged Revenues. Any such Additional Bonds will be'payable' from and setiired by an irrevocable first lien on the Pledged' Revenues, equally and ratably on a parity with the Bonds and'atl other outstanding Additional Bonds. Ali Additional Bonds must be scheduled to be paid or mature'on becembe`r 1 of the s'iri which such ~dncipal is'icbedutbd to be paid or mature, and all interest thereby must bt payabte'on June 1 and December 1. (Sectio'n 23) 7hb Ordinance provides that Additional Bonds mail be issued only in t oz'orda+•oe with the Ordinante' and law, in any amounts, for any lawful purpose, including the refunding of aiy Bonds or Additional Sondi.' No Additional Bond; shall be issued or delivered amless: l(a) Tht Mayor and the City Sxretary of the City sign a written certificateto tby effect that the O y is not in default as to any covenant, condition, or obligation in connection with all outstanding tds and .A,dditi,onal Bonds., apd the ordinances authorizing same, and that Fhp Retirement Fun:, any spptia~ W6} for, }ho, K4tic4m' en) af, any Additional Bends; a the Reserve Fynd each contains oe amount thea required to be therein. (b) An lndependent certified public accountant, of 'Atpendent firm of certified public accountants, signs a written certificatt to the effect that, during either the next preceding year, or ihq twelve consocative calendar month period ending not more than ninety days prior to the passage of the ordinance authorizing the issuance of the then ptoposed Additional Bonds, tboPledged Revenues were, In his,or its opigion: , l~t (1) at least 54,500,000, if the ordinatlob authorizing the Issuinoe'of any Additional Bondi passed before September 30, 1978, which is the end of the next 6omplete fiscal year of the City,i or, 20 womb i- (2) if tht ordinance authorizing the issuance of any Additional Bonds is passed after ti September 30, 1916, at least equal to 1.4 times the aggregate of the following amounts: < , name, to the credit of the {i} the amount'actually deposited, as required by the Ordi Retirement Fund front Pledged Revenues it the Pledged Revenues Fund during such yeir or twelve month period, plus iii) the amount, if any, Actually deposited, at required by any ordinance or bidinanixs authorizing "the isiuagce'of Additional Bonds, to the'crodit of any'othei special invested retirgment fund or funds (similar to the Retirement Fund) for any outstanding Additi0 reel Bonds from Pledged Revenues in the Pledged Revenues l=urid during such' year or twelve :ronth ptflod, puts `(iii) the average annual rrncipnl.and interest requiremints of all Additional Bondi, if aqy, to be outstanding after the Jehvery of t'ne' then propo Additionalotids, whtch'are rayablc, , directly from tlie:Pledged'Revenues' Fund andlor which no `'specral invrdted retirement fund, (similar.to the; Retirement Fund ha3 barf'created and est~blishod b;i an ordinance authorizing theissuance'of Additional Bondi. Each Ordinance authorizing the issuance of Additional Bonds is required to increase the Reserve Fund to provide an adequate debt service reserve for all Bonds and Additional Bonds. (Section 24.) Certain Coreaants In the Ordinance the City further covenants and agrees that: Performance The City will faithrully perform at all times any and all covenants, undertakings, stipulations, and provision. contained in the Ordinance and each ordinance authorizing the issuance of Additional Bonds,'atid in each and every Bkvd end Additional Bond; that it will promptly pay or cause to b^ paid the principal ot'and interest on every Bond and Additional Bond, on the dates and in the places and manner prescribed in wh resolutions and Bonds and Additional Bonds; and that it will, at the Limes and in the manner. prescribed, deposit or cause to be deposited the amounts required to be deposited into the Retirement Fund, any other fund or account establisbfd for any Additional Bonds, the Reserve Fund, and the Contingency Fund, a^d any holder of the Bonds, ,r Additional E6& may quire the city, its orrdils and employees, to carry out, respect, or enforce the covenants and obligations' of the Ordinance and any ordinance authorizing the issuance of Additional Bonds, by all legal and equitable means, including specifically, but without limitation, the us and filing of mandamus proceedings, in any court of competent jurisdittion, against the City, its officials, end employees. (Section 25..) City's Legal AutAor(ry horde rule cit of the Slated ' 'The City is a'du)y created and existing y f Teiiac, and is duly'authorized under the laws of the State of Texas to create and lssue the"Bonds; that all actlon on t,t part for the cteatioh and issaaned"of the Bonds has been duly and effectiVely'takers, and thAt"the Bonds iii 6t hands of the holders and owiAeri thtteof are and will be valid and cnfoiciable'obligatitini ~f the City in accoidance with iheir'lcrms. (Section 25.1 Tltlr The City has oe will obtain lawful title to the lards, buildings, and facilities constituting the Syster,r it will defend such'title or'right against all clairhs for the benefit of the holders and owners of the Bonds and Addil'ona, Bonds; and it is lawfully qualified to pledge the Pledged Revenues to the payment 'of t& Bonds ind r %li, onal Bonds tn. the manner provided iq the,Ordinance and has lawfully exercised such rights. (Section 25.), 21 1 The City will pay and discharge on a timt.y basis 61 taxes, assessments; and governmental charges, if any, which shall be lawfully imposed upon it or the,Cyste'n; it will pay all law O claims for reAts, toyaltics, labor, materials, and suppliwo which if unpaid might by !aw become a lien or charge on the System prior to or interfering with the lien of the ibnds and any Additional Bonds; ahd it, will riot create or suffer to exist any lien or charge which mighibi cOAI be: prior to or lnierfere with, the lien of the Bonds ahd Additional Bonds, or do or'suffer any flatter or thing wheriby such lien 'mlght or could be impaired; provided, bowcver, tliat no such tax, assessment, charge, or claim 'All be required to be`pald so long as its validity 13 being contested in gctd f6t1i by the City. (Sogdot .25.) :!ttrafldn~ojihe'Syr[tm'', _ , While the Bonds c. any Additional Bonds are outstanding and unpaid, the bt; will cause the System to be continuously and efficiently operated and maintained in good working order and at a reasonable cost. (Section 25.) Fuirher En%t+lnbratrce S. 1.:_ WhiIG 4.1; Bonds or any Additional Bonds are outstanding and unpaid, the City will.not further encumber the' i ledgad Revenues in any manner, except by liens or encumbrances junior and subordinate to the tien of the Bonds and any Additional Bonds provided for in the Ordinarim (Section 25.) Safe of Propprry I Bonds or any AdditionalBonds are outstanding and unPaf c e Y m owill not sell, f a signs convey, ale thi mortgage, or,in ac~y manner transfer title to, or lease or r otherwise dispoof the System or any ~8aaf t r3eal or substantial part thereof; provided that fhe Ctty may make any disposition it doe em of Y Y personal property, mact:nery, fixtures, or equipment, when it has made, arrangements to replace, it or provide a substitute therefor, unless the City Council determines by resolution that no such replacement or substitute Is necessary. (Section 25.) Insurance It will carry or cause to be carried, with a responsible insurance company or companies, such insurance as is, ususily carried by corporations and other business entities operating like properties and engaged in, sirriilar,dtvites, f~ubllc liability &4 property damage insurance shall be carried unless the City Attorney gives a written opinion to the effect that the City is not liabte for claims which would be protedod by such insurance. The City shall not be required to carry insurance on construction work if a contractor therefor responsible for such work and is required to carry appropriate insurance. All the City's insurance policies will be open to the inspection of the owners or holders of the Bonds, and Additional Bonds arid, their representiewh at' all reasonable times. The City Witt snake due proof of loss in respect of any insure ao in full directly to the all thThe necessary or desirable to cause the insuring companies to make pay for to' such proceeds of insurance, together with any other funds necessary a + ~h~t if such proceeds purpose, wilollbe used and roalr the property damaged or replace the property art {asuftidietrt for such'purer, any such &sdrance proceed', pertaining to the System will be' used: f; St f, , (i) fgr the redunption of all Bonds pnd, Addttsojlal,~Bonds tlteq outstao nd rtyleemabl bears tQ,' the proportion that the total outstanding principal of a,ach bond.outatagdin8 a the total outstanding principal of all such bonds outstanding and redeemable, or (ii) if none of the outstanding Bondi or Additional Bonds is then redeemable, for the purchase tin ` the open market and retirement of each series and issue of Bonds and Additional Bondi then outstwA tf¢, irk thk prdportion th'arthe total outstanding principal amount of each striel ar lssue, 22 t4 thereof bears to the total outstanding principal amount of all such series and issues, to the extent practicable; provided that the purchase price for any bond shall not exceed its redemption price on the first date upon which it becomes subject to redemption; and (iii) any such insurance proceeds remaining will be deposited to a special and separate trust fund, at an official depository of the City, to be designated the "Insurance Account", Fending the redemption or purchase, of bonds as atoresa►d.,ot the availability of funds suf'~eit;ot with such proceeds to make the repairs Pr replacements, Whichever of said CYents occ9l first, The annual audit required by the Ordinance will contain a list of all such atiutance policies carried, together with a statement as to whether or not all insuranm premiums upon such policies have bpen paid., (Suction 25.) Rare' Coti`tiur;ut ' The City Council of the City will fix, establish, maintain, and collect such rates, charges, hod fees for the use and availability of the System at all times as are necessary to produce Gross Revenues spfficient, together with any other Pledged Revenues, (1) to pay all current operation an,: maintenance expsnses of the System, anfi (2) piodua4'an amount of Pledged Revenues each year at'least equal to'(i) 1.4 times the aggregate of the following amounts: (1) the amount requireJ to be deposited by this Ordinance to the credit of the Retirement "und during such year, plus (2) the amount, if any, required to be'deposited by any ordinance of ordinance`! authoriiln g the issuance of Additional Bonds' to the°crodit' of any other special invested "Mireinent fund of funds (similar to the Retirement Fund) for any outstanding Additional Bonds froth Pledged Revenues in lhd Pledged Revenues Fund during such year, plus (3) the average annual principal and interest requirements of all ibon outstanding Additional Bonds, if any, wh0i are payable directly from the Pledged Revenues Fi,ril and for which no special invested retirement fund (similar to the Retirement Fund) has been creded and established by an ordinance authorizing the issuance of Additional Bonds, or (ii) atrounts sufficient lo provide for the depWts required by Sr'-Aions III rod 19 bCt`eof to be trade to the credit 'of the 'Contingency Fund and the' lntuproveatent Fund,'Whichev~r0 o' di)'is the''greater. (Section 2$.) Nb Cot"Pead6ft i , L[ iL~ r rL.. i • ill i1 U 3 1r ~hhe 'City '*11i t;,,t operate, and will not grant any tranchise or permit, for the a~.quuisuton, consirgct~~to;, operation o $ any local electrical energy distribution facilities which would be in competition with the 5y stem. anrf,,tq.the extent that, it legally may, the City vYill prohibit any such competing facilities. , p eepi.♦d <j1 ri rl ,F, ' 't7.:': ,1ldi 7`- i, •rfd. [!~7 ?'i The City will keep proper books of records and account In which full, true, and correct entries will be made of all dealings, activities, an t transactions relating to.the Syltem, the Pledged, Revenues, and all Funds; created pursuant to this Ordinance %md any resolutions authorizing the issuance of Additional Bonds; and all book%''docisrnents, and vouchers teleflag'thereto shall 'at 'tilt iia'sbnabfe tithes WAade available for inspection upon request of 'any bondholdei."(S&aion 25.),' Audfra , . After, the close of each year.while auy of the Bonds or Additional Bonds are outstanding, an audit will be made of the City ?rooks and accounts for such year relating to the System and the Pledged Revenues by an `.3 t a, e. ~~.......a' ..eta': s _ ~.'~c.- { v. 'V independent certif od public accountant or an independent firm of certified public adcountents, and as won as such audit has been completed and inide'availabie (6the City, a copy'orsuch audit for the preceding year shall be mailed to the Municipal Advisory Council of Texas and to any bondholders who shall id rcquest in ,writing. Such annual audit reports shall be open to the inspection of the owners or holders of the Bcnds and Additional Bonds and their agents and representatives at all reasonable times. (Section 25.) Govtrnnitatal Agenctts' The Cliy'wil[ comply with allof the terms"and conditions of any and''all franchises, permits, and ogreementa applicable to the Systel~ and the Bonds or Additional Bondi cnieted into between the City and ah goVtrnnkntal agency, and the (;ity will take e!I'actloe'necessary'to'enforce`sti[d terms and conditions; and 'the Cny wilt obtain and keep rti full force and :[feet Ali franchises, permits, dnd 'other' re~uirc enis accessary with respect to the acquisition, consifuclion, operation,' and 16intenance of th'e''$ystem'. (Section 25.) Arbtrtd~t t!K' City will Make no use of the proceeds of the Bonds at any time throughout the term of the Bonds whkh, tf such use had been reasonably expected on ttte date of delivery o(the Bonds to aid payment for the 13ond by, tfie purchasers, would have caused the; Bonds to be arbitrage roads within the meaning of 0030) of t Internal Revenue Code of 11954, as amended, Of any regulations, or rulings pertaining the 0. The procewaof ''kW Bonds will not otherwise be used directly or indire~stly'so as to cause,all of any part of the Bonds to be or become arbitrage bonds within the meaning of the aforesaid Section `103(c), or any regulations pertaining tbereton. (Section 25.) AweWme4l o!' Ordlnaoce ~t6 Ordinance may &e'gmended by .thetCity,upon the approval of the holders of the Bonds and Additional , Bonds pggSe sting 31% "ncipal amount, of the aggregate principal amount of then ' 'ng nds and; Additional Bonds, provided, however, that no 'such amendment may, outstands Bo (1)' Make any change in the date of maturity `of the outstanding Bonds 'of"Add;tional Bonds; (2) Reduce the rate of interest bone by any of the outstanding Bonds of Additional Bonds: ('Reducq.the amount of the . , principal payable on the outstandi hg Bonds or A& 0m al Seeds; (4) Modify' the terms of payment of mr~cipai of or iritefesroin the outstanding Bonds bt Additicnal Bonds, or impose any conditions with respect to such payment, 01 Affect the ri ghts of holders gf1less,then all of the Bonds fnd, i.be Additional Bolds; or ~ (6) Change the minitnum pErcmtagtt'of the owincipat amount of Bonds and Addit6w Bonds noeessary for donsent to such anterdirient. The City will cause notice of any proposed amendment to be published in a fi,an ial newsNW, or journal published in The city of Ne1iVY6tif NdW Ydrk, bhbd3dilrsllg+ dach calendar week for at least two rucopyocessivrlwdar weSks Oefty fa ling jt+rth tb patutc oti the, pt,oposedtendmestt aii statigg that a e ef ; thereof is'oo~n isle at t~e nc►pa} oft~cf pf }>ae.Paying Ageob t.}r tbp Bo, rid Additional Bonds for inspection by all,holders of Bondi, cad, AOditiuttal„Bonds Such ppbycatioa isootrogstired, however, if notic4 in writing B giver 3o each LoW;r;of Bonds,aad Adfljtionat t}onds.:, ,i ouCycf at ally time pot ler,4 than thirty days, eod,wtth rt one year, From t, t@'date of, the furl publication,of sald ngtict ft other ^set~~-e of written notice, t1 C,~lty,receivcs ao ins}rument or (nsttument}, eltecuted by holders of the r lquirod principal amount, referring to the proposed amendment described in said notice and specifically couseotingto opd.ppproving such amendment in substantially the form of the copy thereof on':,le, the City may adopt the Amendatory resolution in substantially the same farm. Upon any such adoption of an amerxiatory resolution, the 24 ' J^ ~ f.r .tt J1 4 resole+iua being amended wilt de teemed to be &mend++d in ILO prdance. with such satundatory sesoluI ion, and the respective rig`. duties and obligations of the City Arad s{{ the holden of then outstanding' Blinds and IS, Additional Bonds and all future Additional Bonds "will tiro ealter delertrticed,'exercisa3, Andf enforxd hereunder, subject in all respects to Each amendment; Any such consent given by a bondholder will be ittevo able for a period of six months from the date of the first publication of the notice (and shalt be conclusive aid binding upon all future holders of the same bond during such period), but it may be revoked at any J ~t~te sits; s su nax sdt .n title byefltg the first notice publication of such notice by the 1}olda who avc such ~c pt, or by rindpaat 1 mount of thereof' with the Ctty and with the Paying Agents, unless ils sI j1dets pf S i % in aggregate p , the then outstanding Bonds and Additional Bond} as in t Ls Sean &lined:bam prior to the ilte pted revocation, 4.3wented to and approved the amendment, For the purpose of effecting an amendment in the mi nner described herein, satisfactory evrde toe of the holding of Bonds or Additional Bonds by any boadholde, and the amount and numbers of such 1 otitis and provided by affidavit of the person slain ling to be t4i Additional Bonds, and the date of such holding, may ~ . benkei, o any bth6 ts;torY such holder, or by a certificate eze,u(W by'any trust 1 ~tnpanY bark wherevci Miuaied 'showing that "It' the date therein men oned`such r eirspn' had an deposit with :.uch trust cotnpany, bank, banker, or other depoMtory, the BoMl or Additional Bonds describW,in such certificate. The City tnayconclusively assume that suss. ownership o mtinues until wriiten notice to the contrar,t is teried upor. the City. (Section ?bJ Procews of Sale , the sate Th.- Ordinance provides that promptly after the d slivery of the Bonds a{, of the ptococof fr9at and deliver) thereof will be deposited in First National lank in Dallas, Dallas, Texas, which is a b ink, where !ry accrued the principal of and interest are' payable on all the Our 66ding Bonds; cr,dsuch proes di, Eel sa interest on the Bonds required in the, Ordinance to btli p sQbsited to the ~reait'-6f tM Pledged keva iuat FuM, will be used fair the purpose of refunding, diischataing;4 Y ic'tiring all orthe Outstanding Bonds, lbr funding the Reserve Fund and the Contiagency fund, and far s tying thecosu,attd expel of issupncc or the Bond- By a Msolu:ion of the City Council of even date with t, i:Ordinance, the City has authorized the a ;ecution of t National foregoing ank in Dates he "E= a "Special Escro* Fund Agreement betwaeu the C ly d of a First Doer Agent providing for the deposit with the Escrgw' gent , , p q. . disposition bf accrual interest, the in festnient of part` ~iaFd prods, the daytrient of all t~o4ts ai d expenses of issuance of the Bonds, and other matters relating I the trpw.ctigr.. (Section 30 ) ABSENCE OF LITIGATION A S TO REFUNDING BONDS, r•.. ^ i the Official There' is no litigation pending, o'r to the knawY ~ge of the OitY, th rive o>q.' Yg Y of sibs oc; of the City, a., tho.title of the officers of the ity to thw, ce~Da the Bonds, or the poxet and authority of the Cliy to issue a Bonds, or the power and authority olibe City to fin, charge and collect. rates for the services of the Sj item a: provided in the Ordinance 1 { EI.tGIBILM AS VESTMEN'T'S i The Bonds are legal and lutho.i~'ed f tdvesttne}tts, . banks sALltfi(! `hank. trust , , building ,Y and loasi'assiiciatioris,!>l~in~~! Ad ldar'associationi; Tits Fati 'odirt niei. ~idu anes; sad tail6s; a'nd for ff distrittl, 04 btliz~'lioLtic~lUhdivisi) s or pu%c the sinking funds of cities, WWM, Vilfagel;'rbunties, icli i agencies bf the state of Texas. The Bonds also tit eligib t6 iecuth de, ' its d my 0bl"wfuAd" or the State of Texei or any, political subdivision'ot public ageltc if the' State ut Texas, And are lavrfu1 ..i's'ufriCierit security ter'the'deposits to thb`extent'of their tflatyet v1 jde; 066 Worfnpanied by BAY, iuimttli d oou attached tb the Bonds. ~S t i Il h t UNDERWRITING The Bonds are being puechakd by i!n: Underwriters f,-whom doldman, Sachs & Co,; Dillon, Read do Co. Inc. add Stephens,' Inca are acting as Manager, The Underwriting Agreement provides that ill of the Bonds will be purchased by the respective Underwriters thereof if any are purchased; The City has direed to Indemnify the Underwriters'against certain liabilities relating to this Official Statement as 'more clearly described in the Underwriting Agreement. The Underwriters may offer and sell Bonds to certaid dealers (including dealers depositing Bonds into investrttent trusts) and others at prices lower than the public offering prices stated an the cdVer page hereof. The compensation payable to the Underwriters is set forth under VSource and Application of Funds" TAX EXEMPTION, In the opinlgh of McCall, Parkhurst dr. honors; Dallas, TFxa , Bond Counsel 1u the City, In" 'rest on the Bonds is'athspt frompresen(Piderat income taxes,ilnder 0xisting statutes, regblatiq'ns; ruljn a rld coytt decisions, except that such firm's s not requedted to opine with retipect'to'the`aatos of the > orSda under Section 103(c) of the Internal evenyo Cqc d rQ ulpiotr~ pn~ rulinggqq pSrtaj I jo "arbitrage bonds", and therefore has expr~eWd i ~ dpin bit with ¢CCl 11 ~e B h'd'Ctdi~itfel iv~l I rely upon the opinion of Special TAx Counsel to the Cjty', describod in the following'paragraphi to tht'effect'that the Bonds`ilre not !'arbitrage bond.? Within the meaning of Section 10(c) of the Internal Revenue Code and regulations and rulings thereunder, %i The City will issue itsoertlflcatd,to'the effect War on the basis of the facts; ettiinates'and circbntsfHnctt in existence on the date of delivftbf the'BOtlds 169 dbt'tkptleted thittliepi&eids'ortht Bdtidi vin W used in a manner that would cause the Bonds to be "arbitrage bonds" under Section 103(c) of the Internal Revenue Code. Iii the opinion of Messrs. Ddot(Ballldiilii lushby, Palmer dt Wood, New York, New y,Q4, 40#1 I'A&PPgil ,t.%lbp,gity),b? llfi f114ir,F>1rSS►~i944j.Wt Af Of ig '.ino,1b;,fr9YiS~+;.Qf such Sortj.ficPl£,4t {M Ysr+tt;t on,4rAxandar 4s.nl.dt,cQmwlpr.vresr{a1~ matbelnattctLegmp~t~toor, l s~ ~ timaiF~,>m~: ~lro~ru;'{9os ~,o,x~ cis tly. t9r1 ; JA ~,vsh 119' bjtra~4,C4 #C 1ts.aPt {ply the Srst r{A,Wtlich arpl~4f,~tgfi'34n { 1:44 {c) of {hf.tnlfrnal; fyen0 of 19~41A4 9ri)*P4I and nppN01e '14rcP,4y1 y; Am" Ail onal tag5.4ppgrl:l~ FRAfly,iop~l~ygi,.tllo 090d4,01,PO,~ alblifPgf,bogdA. 1►+ftld9f (~44Yr41~R4:tpAl n4,111~{1f1",IIFY4,6o~441o,llSfsr f)SF4l1PQ..ANA ~1?ke N4rfA~M~4iP, 4r~ In9Pltic3 .60 reprt tl2MmAd4l~, ?4.aa- 4ilfa6~es ;n f t4. drAR Qf Op propose gP1d11PA pf 'PSC11~T.t{X ~v~Diwl CO the Clty ib attaC Od hereto a! Appendl~}„p. >?tr-I,e?!1:Sia7 e„ ant 6-; d b~.1Z4~S'!~~,#ff,~(t!g;4q~~.pyi1,►f,,u~frP,fll~ri.at.qq,,~ubf..iFAIIAI QIIt1PP1,i1ti4P.diiio49tSn.,~►9opipionof ~peclal Tax Counsel to the City, the amount of such orlginat Issue discount representrl3ntyreet op the Bonds excludable from the income of the holders thereof for Federal income lax purposes to the same extent as interest thereup,rpprWploo by,cppVns, except as set forth In the following sentence. It is likely thhat,{i; amount or the original Issue discount will be amortized for Federal Income tax purposes ratably over the thirty year term of the bonds. Any gain arising out of the sale, exchange, or mandatory or optional redemption prior'td'thb'lin'al huh{unity of the Bonds In 2007, including the gain representing the66uhC'`bf unaccrurd discount, will be subject to Federal income tax. Purchasers of the Bonds should codsultthefr tiwrt tax counsel. A draft of the proposed opinion of Bond Counsel is attached hereto as Appendix C. Reference should be made to sold drafts of the Proposed Opinion or Bond Counsel and Special Tax Counsel to the City for tha full contents thereof. 25 LEGAL MATTERS UsA matters incident to the authorization, issuance and We of the Bonds atesubjec# to the unqualified approval of the Attorney General of tho State of Texts and of Messrs, McCall, Dallas, Tcxa;, Bond Counsel, whose lpp P611hwrst A Horton. opinion will be. delivered with the Bonds, A draft of said approving opinion is attached hereto as Appendix C. Messrs. McCall, Parkhurst & I10rion were not requested to participate, and did not take part in the preparation of the official statement, and such firm has not assumed any responsibility with respect thereto or undertaken independently to verify any of the information contained herein, except that, in its capacity as Bond Counsel such firm has reviewed the Information under the captiorns "Refunding Sources and Application of Funds",. ;'Authority and Socurity, for, Bonds"', "Description ; of Bongs", _ "Summary of Certain • Provisions' of the Ordinsnce", J" Tax Exptnption7, "Eligibility as Investments" and "Legal Matters" in the Official Statement. No person is entitled to rely upon such firm's limited participation as an Utiumptilairl responsibility for, or an expression of opinion of any kind with regard to, the &gcuracy or compji4e ess of, lc al alter wt C Y other inforinuion uonteineo pprc}j. Certain 8 , 'News ) be aise'd ' Iuppn for }h4, nderW,ntets bj; Messrs. Dewey, Balfantinc, Opshby`, Palmer A ~.,0, New. York, Counsel {o tf~e Oridcrwrrten. "~Ar;>io01 F' n,yAT4EM4'lr~ c~:± t ~TigN~ :.Th0 accuracy of the mathemaUCal oomputstions'with tesp&I to amounts of tea Federal Securities to the adequacy of the maturi nti'ptinciF,t! any, on the City's Outstanding Bonds pa, and of the mathe th principal coorand Interest mputations sundrting the c nclusi th, if Special Tax Counsel with reference to "arbitrage bonds" (noted above) will pp be verified othe he by y Alleexandexander Ar Grant 4CompaQy, sxrtifeo,pAblic,accougtpnia.,$»Sn,veyificaUOo, of otaftwticol computolipnr{ will be bawd oA tnrormAtion pt+ppRi~d, oy_the ,City, thrpugb, tha: FjnlWcial ~4dviaorj, 3 , , 1e'1?'Jlnl t ! t: ('}~;J l ]J~.' t;fizri rir,a,+r 11;,116" Yi'Mi ELANROVS r; If 11.!!; q13{Ill r. f: S! rl. i'Jfl) rf n, il + a.rJ hl a„hrnb'~~tffot3~uorr, ~~;e~~~~,a ~~a ~'vaernrr'~r tha `cnytarb act roi'ch4h ihb br~in~nb'~ ruthorE~fti~ the isswiilde' hf the Baildrr,-,,l}d heith'dt this Offiefal Stktb-WM h6f 1&V ftd*ertisehtenl' cif th`d boirdi is`to be c6hstFtipd as'a ~bnfil'cl .~tth the`p4tchdsetil Ott(~iv I#oiids s'tfte tend#encN exekPpfi'ittld sGhS'n#t}iEi'dontdned hoeltt er thb Act; the Ord`~tia?icVl,' Ssnd`btltEr dd~tihibtits re}Edfed ib hfrNfi''do i90t utpoN'to be torti~ltte at'illriSol►t1'drlhb~Yfo4isloiiitbrNflcRdt~ctt>H'Mts,lAdtefirrElf~?eWdIdb(d ndde'f6flkNdddir ttlt`s,'wlitc6`vill Wfutnlihdd by Q City* the OddeMIII'e~f'6OW y" (of /drlhlt'ififolfi'CfiD6:''Aby'si~f~fndhf! itiidC id this omeral §tbred'fc}tt thimini'ri iltdts'6'f bf+ftildlti r afe f)htetEd,F,ihb'#het 'af idf dx tftitly Yb'iddAtifitd, are intended merely is such and not as representations of `The CityCotidcil of the Ci'ty'bf Dehtrin Irtif "Ippt'oved thin Ohltfal ~tlleihty+lt by drdtnr'AtE`brleld City edutlcil'passEd bri Mitch 1978. fill Ir r! [r r. Cri`Y of 13Ei~1dN;'fs xAS' .131 .1 f III i PAP? KSki41 T l r tf r 'r, 0 ,t"(ry~rCre{4ry 'r r 31.Frt.1~A!F„Iluattas r . , j. Ir fE J r.3 1 r r°_I ~ r i f ~ IU l "I l: i '"jowl .3 l, I 1 .YC-'i 1 r, Y`,, ry It 1. .i,, j 1", 7r j: rq:Lrl ,I, li•I 1 fill t . APPENDIX t i s (1 ;f CITY 9F DENTONo TEXAS rJr t r ,..r F J.'~ . r ~.•1 1 i t p. ~ -r f; I r S ?77, , r. t.' HNA , ~~rr NCAL srAT if , •3 ,f i ~ , I(,.:s tt',jr i?NT3 ( 1(s+ ~l0 ,trl t,'•, i~' ; r t, ,rr :,f f F, ~ ~ r r r, r ; !115CAV YEAWENDED§&T .c ECs iCtF'J'+JS Srff}() rj3l~Jaf fr -AArt IEhf~ER 4~6~I:~ 7 #=(.r +1'p lJ.,~lY,~rltr"+ J(AI)~i,f(t}r~ri'l'j fi~'~{~~{4,~..: J•.~I~~'J r•Ir ii r ~1;}%s~ r!~)rJ}a 7Ct 1`~,•t f r~•~~':• !E .J ~fI?'(r;r J{IU'a ie C .Jl~,ti J?j r rJ• ryr);'j:y 1.j j rf Jif{ i 1s5. i~+ la.REPO,&op Urri suPUBUCIA&OUNTANUit,t1~ "C "JI I' fJnJ; !c};)~V'1 FC[ ~rt kl ~i:! V.I .~.~3(f +:'i # e~'~}. ii3'J :!'r. JI' l:!I ~QJI CY? •~C{ fr 1 rir{'; r !'3 (I ll.t U'rJ'J~ IJ!i JJy 1;y Ii:'~l: ' f ' D .f t) CCr:l: I,rl J n t a+r, fc rr t krr , +..t1) R f'01 JriJ {Jns (.J ra cj CiU s'; rtl 00 13 a IJ'err {!ir;-.i 1, :sA 1 ?:J 10 )j rl J, ~}ilJ.'} C:J? 'rC)flt)r~ iJ_! j + ; Flr~ ~:b ~Lj,S(FJ:) (I'),t ri "t ,fS J [,J Ix JJJY rf ~ -.t J i 11 e~ri'f , yon')p11 r a:v"oll r r,qI of "f r rn ,r+; f s ltl ? 'Jf;S'tCf h(1 IrLLr rll~)frclf"tJI:) ~l( ~}9}r,rk -.t :-b r4"d rLYJ~,q yrtl;gr,1U',r>F: !JIII ilf ?1)J?tft (11)"fir ~ 1t4JJ~f ' iiJ JsJt~ Ff !t.lt.l tr., '.•fflh'~rJ,f, 9r, in,frr,)f:fC3, Ct:f'.IFJ;IFt=~ .fJ.! ,rhfr':t"! eFI.J r'u ~3rF.,tx~r !!({;i '1+a? 1rJf~~r~~~ .';,?).;rl+,r, '!It{i of J: Jt',rl '.~r}5 J J F_ r +f.'.~ I"1 1.J E+f .t ;7'il It li: f'~ I Jr. Jr( , 1 al Ct Jfi ~i,i -•!rr l,•b Lil;ia 2.1 E ~J(11 'Ira Irofaltltrr_ra w+r1.! xn rarFlf~ ,~Jrte Ett€) a 0ffj ~rO.1cil !Jr!_f fn'rrt,Jft. !!.,,,nr;r:1 1'. t'! s51Lt J1Q uj; ,rirlt.J„r rtr{ 1 ~Irtf,~J,rJ;r 1J:iiJ t n irf rrs~art►'t .rJ :~tft uxx~ JtI C 2+, i x`) rrfl 'i J, ,;f t { f x.! r ~J1,- rf r t r .~r1n) J J.► ~ 1 ► ral:rrx'z nnJ jrf•.4,a 0,011 rm; If',y;f +.1,,FIJJ' r.IJU"IY•'f f:11Ea ir) f?r,tj~i{1C1 ' fJ;fJr Prtt; 't r,1 Rf1U.1Jr:'M 1:r,f;,r1[,r~i1 rFf .;nx.rll r:rf3 Lrl: fct,i~ J,Jrr,i~y ,r <rIP lr} F:1)I(af~'t girl'! l1rrJ: t1I ~!::,Irrrts {t~s,ii kllrft4 yrtl ofcO :irrAF(I •r of frJ~r, rirrlifr~'cfi 1,f~~Jrtr~ t"af{II,")Jr!of Lj 111"' 'J:r <,r,uJJS (CT,'r„F•+'; ii;rJrr r ,irr,'JO'usa"t . %'r,:;1 .1Jr;, )~'~.},erra:i r rtes 'Al l Aiexender grant INTERNATIONAL FIRM ALEXANOER GRANT TAN9LEY WITT CEp?Ifll6 OUtL10 t COMPANY ACCOUNTANTS NT9 Honorable Mayor and City Council City of Denton, Texas We have examined the financial statements of the various funds and account groups of the City of Denton, Texas for the year ended September,30;.1977 as listed in the fore- -going table of contents, We have also examined those financial statements for the year ended September 30, 1978 listed in the table of contents, Our examinations were made in accordance with generally accepted auditing staurlards, and accordingly considered accounting nerecords cessary a in the such ciother rcum- ing procedures as we the stances. stances. The net carrying value oihe electric system utility plant in service was inor9&,*,ett,t9 the,.,9pprrAsed replacement value, as determined by independent consulting engineers values September 3( , 1987 C(NQt~ ,A~,'•~ t i' p9, Rep;Z0#g.., ,i1 spp ee in excess of cost and the charging of annual depreciation of $283,168 of such excess value ~iroGly to System''Zquity, iathe2 than to expense, is not in coaforait; with generally accepted accountinto print p~.8l9;;Yr►illtd athe~~appf'At► !ti'tY.al,u~ea sirs exc@as of cost not en recorded, the Uti).ity plant in Sbrvice RITSystem Equity shown in the Electric System Funds would be reduced y $2,01 ;909 and $2,303,089 at September 30, 1977 and 1978, respectively. As 4iecU6904 in Note Ej thn City is a co-party defendant in an'iction which could require it to honor its guarantee ol,'aer- tain bonds `issued by the 'texas Municipal Power Agency, The ulti uato outcome of this lawsuit cannot be determined, and no provision for any liability that may result has been made in the accompanying financial statements. In our opinion, except for the effects on the financial statements of the Electric System Fund of the matter described in t1so second preceding paragraph and subject to the effects, 18 the any, on the 1977 financiab statements of the resolution of litgation describedto the first preceding paragraph, the afore- mentioned financial statements present fairly the financial position of the various funds and account groups of the City of Denton, Texas at September 30, 1977 and at September 30, 1978 and the results of th9ir operations and the changes in financial position of the Enterprise Funds for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis, A4 ONE MAIN PLACE DALLAS, TX 76250 1214)1480100 Our examinations were made primarily for the purpose of formulating, the opinion stated in,th~ preceding paragraph. The supplemental information as set for h in the foregoing table of contents, although not considered necessary for a fair presentation of financial position, results of operations or changes in financial position is presented as supplemental infor- mation andhae,,,b.een subjected to the audit procedures applied #n the examination of the basic financial statements. In our op nliQQp, the ,auppleme 4al `information is fairly stated in all ipati'i al respapxs in r9lation to tho basic financial ctatecents tak6n as a whole, Th ~ ~ t~:e sta 'st ti~'sticc' 'al , data oa,p.;tg ~ es 96 through , 101 1 han ,b*e-li summarized from City records by City employees and wag. POtk'"i0-,i3. ;-4je9ted to;tlk4,audit pr,9cpdures applied in the egam#nation,of the ~fbajs4 financial atatepeeto. Accordingly, we do not express an 90 oeipion on such information. OA Dallas, Texas October 31, 1977 _ K .~~iy'~tru.e`d '+'7111 i.ra . uf~~r~t,f.. ,fay ^;~~~Xs' I~➢+,°;, .`tt ,:71f1(,S~l,Q~?,i';f ili:~~F3.{~ i;i?F:,S}:~; ~1lis>~~.i~is V3 City of Denton, Texas COMBINED BALANCE SHEET - ALL FUNDS September 301977 `Spbcial Debt " Cu'pital ASSETS Gederal Revenue `8ervibe ' Pt'b~e`tita fund kdAds ~W r r Cash Equit~► `inn pdoled"cash' 3g, 413 $387, 309 $166,,501 $3, 641, 749 T1m6~ dej*-sits' Od , , , ,4boi+ued ibtbf+~6~t t i,2f,388 Oi0 Y3'921 RedaiVahles i. kit o r: t.,.381j-834%. 130(9171.1 i r' _ > 6byy`911 Due from other funds 321,233 4fi~63 f , r,.,, 627 ` Inventories _ f809 Presmid expenses eta ;Gas ~ - _ Restrickeo assets property,... plant and:: equipment -net Investment in Other Amoun of future require. _ iaento for. retirement of general debt Ai►ount available for debt service $742,480 $031,368 $187,617 $4,8910290 i A4t V, -4 } k Wa or and antra- Trust Electric ewer';' governmental and r + ' ' ~'Genbral System' System' , $eivice Agency General "fixed Fvaii' 1E11 nh> de d.r- 'debt ' " assets $ $ - $ - $181,886 $ _ 036 26,821 - t _ 3, s~0; `mi 5,807 r 22t''' 1 ` ' _ r u l , - 79p307 166,433 97j419 101400585 - 476l768 370856 41226 553 - ' - yy1 4780821 - - „ r~ -f sr. ;r 3 c~nt.k; F r t rsf, - 8p629,759 1, 351,151 27t327$556 11$876,359 100639016 - - i ?~O~i258t 582 1080075 ra ~;:7}%~ t fat 1 I'v _ 1 ! (i % cr u fb lao5ct l wi 31 11 a3 ~r't. c7 .Z 111.1 z ! cr 1 CI `.S tom""' Y}°el 0 $411525j132 $11313120951 $20262,835 $181,886 f 121024,0P01,~ r2)58 582 ^-,~;1 ~(Sti~! 1(11 fs it £11;)trt},~'f')pp'1 CJ,1t!~+d'ff' 7virSl t+ttr, t'illr',r to bin r{i r;+rrs,lJra1[1'tr C') t}f.'1..>(},~'+. o.Gr: 0 +'Y "M.;M.,wvry'..hmY r... w+'.. ..nrti rirq. xw.. n..;n iYpewsr..+:".rv A•5 ,l. p, City of Denton, Texas COMBINED BALANCE SHEET - ALL FUNDS (CONTINUED) September 30, 1977 LIABILITIES, RESERVES, CONTRIBUTIONS,FUND ~gneral BALANCES ,AND General S11 pecial' D0t}t Cap"ta,1 e,YQnue S rI d $ Pro ject9 RETAINED EARNINGS Ftind _ nds lti Funds' Deficit' r position in pooled cash $ Accounts payable and $ 14,003 $ - $ accrues! payroil 197, 546 311 -Liabilities payable got 281, s. from restricted assets , Deposits Accrued Lone, Star Gas payments Rebate payable to cu @4~o,mere ' OVA 'debt Due to Other„ funds 69$288 393,157 c as 7 Reserves 388,278 3,803 't fit t.nrea~~,xed increment uti in yaluat!~{ A . Yneervice t- ~ vestment--' ' , Sri, C' 0 Q' i) St3 r - - #~+e~Atagener S on ~1 e:'F.f°,~e)i,, ? fc P,,` Ct ef',Ir Sf 7 f"r't:,£f°8 0*64 Coptribu tionsr by munioi- pail.ty and governmental agencies Contributions in aid of - - - construction Retained earnings Rind balances 89, 388 8_7, 081 18~ #617 2 504, 597 $742t480 $531,365 $167,517 $4,891,290 A-b Water and Intra- Trust Electric Sewer governmental. and General System System Service Agency General fixed _ Fund Fund Funds Fund debt assets $ 3, 61'Y 043' $ 727' 01 2~~ 8 ' ` s $ $ r 103330759 56,318 !89x.18'' ~$1;~66 ' 1 588'A81 354, 449 191Tci, 212 478, 821.,. 205,677 16, 902, 000 6;4 , 0Qf 4,000 401,788 18;~6?~t Cit +.4► n2~8'~~c~~;i t,~. 61 73j()4ff "r,.' c~~8t•~'~$ !>~!Et~~'rc~".Yuc,<~~~ 280 ,I1V',`, 1 l,264 0 600 - €_..1),1!i'lii01ll:)ff!t 11o j'i'Sao 2Q 288,582 e!. ~rs j ti.~ i~S.._ 2, 7~1; 412 - +_~fTt3. P+,4 bafa'~ - 16'1`; 2d8' . 2; x'84; 9'~ - - - 7,865,780- ..(12,866) 615,396 $410525,132 $13 312,951 $202629835 $1810886 $120024,000 $20,258,582 . rfl'?i:I`.711`.ftt Y~i~~ it,! ,~j','t'y'1_~ff~ 17 J. ')'lii =J`,.➢!)s'1 ~llj,~,~IfJ~7L1(i'1'.}!i ',}1~3 City of Denton, Texas General Fund BALANCE SHEET September 30, 1977 and 1976 AS$ET$ 1977 1978,. Equity in Del"'nqun pooled cash (Note B) $ 39,413 $211,042 t taxes,rece%vable (Nqt,$ q),. ~367i0@3 3 Misellaneous acoounts receiva 1e' net a,0ig7S of allowance for 4pb IT accq}~n# of ~,,f• $10, 000 in 1977 and $IT in I9~6 Due from other funds ) ,771 26,$39 Prepaid insurance 32211,233 25,218 $7420480 51, 5~8 µ 000 {1 MiLITIE00 RESER rANL1 FUND B ,yt d; .v 00ot S,01!Im , I Ba S ! Ott: Accounts"payable _ 1'44ON'l5 $ b 'r0 Accrued payroll and payroll taxes 152,871 117,900 Due to other funds 69,288 701489 Total liabilities M 266,834 20 " Reserve for encumbrances 19j215 7j924 'B Wdervo for delinquent taxes 367,083 338,615 Fund balance ro M ,$g S 261,512 !~Hr?f3'SilSSiv 0(}() tSO,S(~' c!$Fi,l~3l~? c; l: fl,Sils~,S? .[t~,~IF:R£! ~:£d.%~'~',,Il2 , n+...,..r.e.,.w.r,...:...,.,.., .r h..,.....:6w+.s+w.:.. ..+r.....;...,.mw,o .,..,...,,r.:,...ww,«...,rts, p..,..,.nwn.r ..,w,.... ~..www... The accompanying notes are an integral part of this statement. City og DQuton, Texas G04,gr 11 ;rand. STATP44W. 0$ :REV E$„ANp, T xvARa► EXPEN61tiJAES AND $NCUMBI LACES Years en'd'ed 6eptember 90,"1917 and 196 Revised budget Actual Actual 1977 1977 1976 denuis ev General property taxes 1 8i @ 4 ~p 1 48.,. 9 3af Current 8 I394inquen 80 00 72,97 t 9 090 :i , $ IjIenalties and I26,98I D, It Other revenues Other taxes 1, 371, 281 1$401p760 112950824 Fees from rovenue- producing facilities 8359750 832,983 802,830 Fines and fees 2670450 302,842 239,700 Licenses and permits 46,186 57,3$4 440747 Miscellanaaus 2,4,8231 250)m 522 2652009 7(300 89 , so AV- , 700480910 Transfers from other $ 68, funds (Note 0) l 8 7 811 l 1994 537 1 Expenditures and encumbrances Salap es and wages 3,8909927 3,8&4,490 3,608,427 Supplies 426,136 4331107 3910726 Maintenance 5739993 818;415 631,028 Services 840989 840,753 7381902 Sundry l4, 586 150623 $0169 Capital outlay 71,933 108,752 1191851 Nondopartmental expenditures 1080821 168,572 124,780 Insurance 61 690 64 089 37 918 1310, BUT EXCESS (DEFICIT) OF REVENUES AND TRANSFERS OVER EXPENDITURES AND ENCUMBRANCES $ 123,324 $ 620856 $ (3110681) Thb' act6*j n[yih tzOtb 'are' ohf3 'teg~aly p~it't h'iW'%TWt' r ~1t4' City 61 Dedtoh ' TOX&S General Fund STATEMENT 'b C~tAN(3L~S ~N F1lN ' SA .AKC ' Years ended September 30,.1977, and, 1973 1977 1976 $ , Balance at beginning of year $269512 338019q Excess (deficit) of revenue and 1 ti" "frini,fees over6*penditu>ag ill .1 - s a4 d 6? 868 (31X` 681) 01,,h8tlmbranceel -~r--~ $'"'26~ 512 $89,368 ' $alaA~e.at en~1' ! l:0 0 I "A J% P, k (,(1.j x111'1 K+ i31,t11tif:Y~,is;' (31.r ti S "1;1;1) ~1, CJk t' 1'1t , r'a.i 1tjlI11`<' ri `:i'~ R~ Il t, w " ~ bfl +f t, IT !t$(s1J!Ir. tsi!NI q ;jj, 1'1' 111 Li Jil'i t r0tegrallPaxt,.9f ;thil>4~teentc►1 P,4ojpPa~lyA#jg .ft9 pp, f ,e A40 City of Denton, Texas General Fund , STATEMENT OF BUDGETED AND ACTUAL REVENUES'!AND TRANSFERS Year ended September 30, 1977 Revised Actual budget Actual prior year TAXES " , t . 'i, t Current $1,4568981 $1,450,848 .959V307 (,Delinquent :50, 000 72,978 59, 090 ''Pepalties and interest 19 000 280,580 ( .18 433 $9I 0 *A 0AUa IP83$ 450 OTHER TAXES sale " 41,175, 000 10197,0962 , 1,160;112 TtYr 'hchise -(14he C, is Jllg t°.1 l1 ) };ic1il! c.110 0f(%r Gas 00)01:4`' .76, 880 76, 880 .(c' , r `.47 j 487 s,l~¢NOhise - rGeri@>ral !(k' , ti l ~ ?:r~•,• ~ •e,~i'sF,i7 Telephone ~Cd'. 600051 600061 340037 34ixed bevsrAge 160 350 =181875 r. ; . 18p304 Hotel occupancy tax 43 000 8j tf'47 . 9292 •f s)1~684 (k; f1 , S. 1. 3w) 41 ; l 1, 750 d , 1;'193; 5 FEES FROM REVSWE- PRODUCING FACILITIES ':tx) i'J..t Y :7 [r tTLIGarbage chsYge13 - 000,E 098 s residentldl: 0()[:420; 000 "(4061430 o.1 .,.t 402;511 81'1'a Garbage o1M8eet - 000 ,0 ue' comperoUlt, S 001Q45, 000 337•j8917 s-0) %329j149 mm in d]~ ` t(.)0 000. 1l, 9S4 1 cr: a , 9,~7'I3 008,00metery i"OI, owilt1,000 1;c6 J10-233 a 01, 6Mmuni ty lbkfildi:ng [ro'011 ~!I~nu1 !4111 frjtc. 8M) rent ".,i1' 006. 9,000 i+c,c2f9b7.rj .4;7,1114087 X420 AIt'ppoort IP6G,1;t~6 00011t 600 r~"~11(120°813(P,)nr.F141,1473 r:)F ddrbage p6ftltY (fr't( J20750 ;~18o3601,',% 'i t, 121812 80 S olal picicu service 20500< i,~}:,i,? 12;961'1 ~,.4 404 t l it l`eatiofic~pYrd}~ m r c 00 ,~4 OM z316Sla activity tee _ 32j000 M PINES AND FEES Corporation Court 250,000 284,646 2200492 Animal pound d,200 61328 9,293 Automobile pound 4,400 60814 4,438 Court cost service fee 650 871 1j279 Police funeral escort and guard fees X71400 3~,M --nuflau A•11 t City. of Denton Texas General Fund STATEMENT OF,BUDGETED'AND ACTUAL REVENUES~AND TRANSFERS (CONTINUED) Year ended September 30, 1977 Revised Actual budget Actual prior year LICENSES AND PERMITS Zoning permits and petitions $ ' 3,600 $ 4,500 $ 6;450 Tax 8leatr certcifiandegtes~ph'itabidg 2x.750 3,18: 2, 6?2 licenses 40-200 4x 458 30125 vital statistics 40500 51229 , 50377 Suilding permits, 13,1500 20g326 9j592 Miscellaneous permits 1,500 1y345 tLoA'ding zan9e'k ; ti .3', 500 2; 202 c,., 095 Gar bags r ermi is 120500 i :l{3; 739 - : t ci 12; 238 `EaBeiaent ' i'1 " 250 .260 , >.t,r,1 250 IWAvation of-Mits 385 404;,f : t tfa-.322 hWtAd and beAY.:jp6rmits it 3 ¢ id ;licena~e4' 3. ! r," i ` 5OD 170 685 30 MISCELLANEOUS Parking meter receipts 3,000 4,,944, _ I.14j674 ? ?Ele'otric inal,ectidns r, 3000 5,•340 f 2x 860 Plumbing inspections 0$000 14.413. 4448 .;Coil ty fire~randi:ii fwo (5f000 2,804 )•,•t 5,830 < `Sttfeet cuts€o! , i i ~.r '.52,000 551,,87?, .,p: r i:, 62,462 I A Redts and ca teessions 0 ,,6;; , F4, 800 4;000 L-j , t ; .4y 800 Matchint funds 119,031 ;r109427Yf 1 r~w101*,406 ` iGadoline taXti+gfund COO,!, 500 465 ; A:1, s 908 t.5Ut ddellanewlg ttfidome ,280 000 33x 089 j »..3.36, 052 s13ald of reNde,befgs 0,Ct,21,000 25;87 ,t! 22; 361 t> OWe and fdd0,61 grants 00 ,S' - Ott 7 L crr'alil I <J., 2 ' 008 4 C. t~ ,.F~t,:; t;tr~ }inL,:vf eft^1.(i+' Eli.? ~i.; f~ '`1} _•~f'll'~!}i' j',l{f C)J A-12 i -7 '17- 777,T77T 77 4 City, Of, Dent9A,'1 T0UW General VVW~ BTATEISENT'OF BUDOV`lgp ONTIICU D) gEVENU$$ AND 7R~►NSFE~iB' Year ended September 30, 1977 Revised Actual budget Ac~tua~l~ Rrior year TRANSFERS FR0M OTHER FUNDS System Fund Electric Sy s t Administrative 461952 $ 456,96. $ 41,988 t t,r services -ui $ giliQg7 ;z tReturn on nst: 855 168 J. 1 11 4, investtiaelnt r g.75,339 L~,aWater and Sowpr t, 1 i,, ! jil „~v> ,1 System Fund, f Administr;Ltive , 152p323 139,033 6 01 Return on net it rr:it. investment r , , ;n air;r [7 Trust Alridw ~S8 ~E:o"0 Hickory CroVX Park (lk.cb. 333 301 ~,[rc=."a1 s~t'' 31g 4Fy.', Bvenlle 6h~►ldng 869 t t t 1, ' t $6 ILQ 699 $6,194, 6.57i 5 `$5, 209) 098 FF t } cj tti: ,ti j. ` q Ff, 47L 7 ,t"L S.~ } a( I Cr !.9 ira'Il ~,t e•f;=:,,f c£~,l ,T' ,irL3sr~i t1}c(F.:t OPV L arte ttr t:l ~i ITII r ~ t}! 8 0i! V r, 4 A613 s , City o!"Dentda' ! reaas, Genezsl fl!'hd~-~? STATEW ' 61' APpk6P 1A1`tbRB AM' EkP `1VbITURES AND ENC fBftAtYCE3 Year ended Sept'ember' 30, 1977 Expenditures Expenditures Revised and and a opriations encumbranQea ncumbrances k GENERAL GOVERNMENT _ rior'year Salaries and wages 'PPYies $ x 141,128 $ I41 808', r 10; 1'70 10, 087 686 n Maitenance 14 SBrbiees r 280 205 30j 532 u r $1~ 112 Sundry `''1220712 116;212 : n 7 825 106,392 Capital outlay 1,111 8853 '1`}3 ~5j881 Insurance 728 10%256f 366 F.?„r> tl 'I f,YP..k., -r3'jtf' 138 -)v_._ 304, ri,,.i>~1 8,063 ~~~3'~'pARTIlENT- Jsrr rra ~tr~~~r~x ~ Salaries and wages 82 03' trrsrit~,n} r 8u¢pilee , 6 82, 320~rru"j jerrty 618 Maintenance .f or 8~ g08 ~ rr I ~1 s68 ~ ~fo?(r),t ~i 8, 432 elf Go i)'r+ 3 7803a )S.(a1gV111510 Sundr' 170974 38 O78 '~alii l' dutIjLy),r 4j 250)P 21517 '915 9eq 4r 409 4j501 560 IT4 491 COMMUNITY DEVELOPMENT Salaries and wages 256 829 supplies , 2840882 263242 Maintenance 15,962 18,171 r Services 8,394 9,224 16,073 B, 688 Sundry 21j340 23j600 11485 4 170934 Capital outlay lr 684 284 Insurance 730 4,301 3 515 -1 1 7 70 CIVIL DEFENSE Salaries Supplies and wages 27p740 270137 23,814 Maintenance It581 3pOS3 1'640 1156? Services 2, 908 3#386 1, 875 3j348 Sundry y 10 3r 0 16 Capital outlay 10 Insurance 828 1,588 1,676 833 445 r , ~+37"'8Z0 "3Z"I~Zg A44 , I r t . -i.'.. t n . . 1,:, it +t .f' ~ •i f City~o`i Denton'; Texas!" General Fund o STATEMENT OF?AppROpRIATIONSf~ NU p ENDITURE8' AND' ENCUHBRANCEB , year 'ended Septewber 30, 1977 Expenditures Expenditures and Revised and encumbrances appropriations encumbrances prior year FINANCE ADMINISTRATION g1;844 $ 5],478 $ 148,467 Salaries and wages $ ,.'854 631 390 Supplies lOg lOB.r. y t .190 Nai~ltenance 1o801 Services 1,791 10878 lg r ~ . 1 Sundry 18 385 171 t''CtanpA{iStraai ncoe utl];ay ~ ,z'~r r } R f •i , 200.- 158 : , . 1n8 4 ---4g, 211 r ,r TAX, p$$ARTHFNT 'f 7 ,sari 48903 0t ' aliries and Vla~Bs 001.591 49,761 S > r 33` r IQ) 564 ,tv~l0 c,o11as3► 6300 ~I~a tenance t:, 8'359 20981 „1AfWS1.0jGl5 't~~4e~vices a y. -.t ;P"I 16 18 f.s~,17r~c 1 'Sundry + Wt. I ~t:450 414=,,~, 1,,.; )_~.if;•211 frFlnA{urgnce ri,c; N 6g8. _-VM --gam Ca s aY outnkyt 0'r , I 335 529 30 YtW-114,Y-riJio12 b09- pROCESSI W , € I Gt-galarjea and'Wafes 88 , 517 89,150 x'7731/#80 O t-0 1290 5, 385,' s P +t ~f 0it79 [ t"Suppliee IN F,S , I. Or t) S ' 380 537 1)~ '1 14589 N,. Maintenance' f •,3193 199 92,128 J14256 s Services t., Ca.- 2900 3,122 5 U,6 ~i, Ancout M! `s~. atl p ~i~Z ~ 1 r: tt11')11'Jrd SANITATION - `00MUTION , 017tOE i 649 309,405 ;.t OQ9t-~5?0 Salaries and wades 1581451-r•~.f r w i 166] X80 154, 510 97,146 ; t 82,634 r t? 6u plies t 4, 900 pp } Services enance =,r, : s 70, 925 65,745 •i •j'88i467 Services 150 10 r,-,r~•,~-~~:ffi 91 sundry , Y 8,146 50 809 178 ? t;at tan ou t1A~►. Insurance --m8 Z,7 7 " g31 Z9 ,A. r s r City,~o! Denton; Texaes Generale Furtd, STATEMENT OF' APPROPRIATIONS ?AND EXPENDITURES AND'ENCUwBRANCES (CONTINUED): Year ended September 30, 1977 Expenditures Expenditures and Revised and encumbrances appropriations encumbrances prior year SANITATION - DISPOSAL Salaries and wages $ 46180 $ 450033 $ 37y877 Supplies 59170 4o324 5,133 E+ Maintenance 40,585 50,842 32-268 Services t +!301 050 31, 564 18,104 Capital outlay. - - ,,,+;325 r.If Insurance <,c t+{,310 ~250t )r.) V o,,192 1UP on K • K a:..ti POLICE Salaries and wages 9L25,.p72~/5~ 9Q4(QQ2~,jg529.r t,x66, 747 L:%0Sp~pliee tdt Q-k. V61/ .,850 v:V &J!2fi ,~).t-.WsJ20 Ct•Mpintenancer'L ()040; 150 4 1938 .qt.t 0000 urn-sprvices ? a; rwl630982 63,910.a~~f,.xr i~~~084 ;I.klpbt<rance t801iN '1~V; 45 12,517 f6j309 1 Sundry 01 ) [ 1, 918 1, 918 ~'.°xt~rz; . t74 J j 'Capital outlay t~ 31055 21930 ;0,r(r,,f:1~ej,j V330~ C!" Tro,1170 RIGHT-OF-STAY 13, lq.$; r, r ;',:;!'12y ¢Q Salaries and wages 13t244 r~ {S1xPl~iies t ~s; tt, a450 , k40.$~s , 3t :::tr's~43 e:%MpAntenance,F, M040 1,234 K:na )ctq,,P141 QP,,Services ti C<; 1205 179 r ri r~ 2 rti.t rl58 44 a , tSµwir y s r t, 4a r~ s , I; 16 24 a f r 1.04 ihurance I ,t; ooo s W5 60.0r.rt; r, ~il• s" 1 Z- a 100 490 loom r,=~1t.144JADU PURCHASING Salaries and wages 30t248 V0 01010:4$ (Y'%sifPPlies i,~ ~t t s 2, 715 2,.771 r=~ Maibtenance t , r~.,, t rr'.. r 0260 204 + , ,±x 108 k.:S#ti*ices ijw? 5,'805 5, 829 6,:284 V )'Sohdry t (:o 15 24 + . r 2 E + insurance a f!; 3 is ! tJ 00W) - 39 M :fo I r... ` . %A•Ib N w l . . . City of Dentonj: Texas General 'Fund STATEMENT OF APPROPRIATIONS, AND ROENDITURES`AND;ENCUMBRANCLS (CONTINUED) Year 'ended September 30, 1977 Expenditures Expenditures and Revised and encumbrances aEpropriations encumbrances prior year BILLING AND COLLECTING J Salaries and wages $ .192j424 $ 195j,259;=$ .1790609 Supplies .38;700 43 735 Maintenance: 4r 144 4'35;065 .,Services ;.i t 9`370 9 807 4,843 Sundry X136 ' 11467 138 ,,,Capital outlay,, t r X 't x..:410 409 :tl1v 1 r.J }2 077 077 . Insurance l%V630 ~19569 > ~rtr •ttr~s870 ACCOUNTING <:itr +:Iy,. ,a~hf Pft,]Aries ands vcageat: z4281917 27~811,ks ? ,c ~7~ i39 lip , C e IZ2,r220 21066 Q;M&Xatenance tts:.88e o!: e3 J+• z c:..ftt,2~258 s ~ ,i.,t€tt tet;s120 i 'Serv.ftes t,;V , icj4 001p953 1p907 ; •1 4~3 Capital outlay 0W 150 100 1tlnaurance ,~;3 # ukJiJ _ 2 f.r,, PERSONNEL Salaries and wages 36,101 29r-70WL Supplies 30863 30950 4;508 Pta tttenance o:r8,16d 3Q?;.1843 : `sz;c~ I12 ~9I`IS ~k:~ 44 Se ''ices i,":c , N S,V39 6,352 ' ~t Cr r t 4 .C<I l72 hot}•anCe Ci3iJ,1•S 2 wl.e~,8i: ~+t7rtr.s,, fYt z et# OVILIiital-. outlay, ji : (*1 %289 S S 68.i --t~790-255 1, 289 ~ ~ , t r s ; 294 ctft %0 1611,E;f S:c}R,rr #f;J_#t, TRAFFIC CONTROLIP';1 "+t~ h 2'A1S•St WS&Xi&ie9 and"'ga' 64 831 530606 51 324 Supplies 4 107 ' 4137 Maintenance 25948 ~2T,p881'#1,, r, 3,850 iSek•~Lce9 <,,t,f E,'8~`838 r 28y872; t'ciapita] autieEy;,, s 11183 gy484 t tt8,004 I!;xhsbrance 0Q ',873 1' 873 24x369 1'i f xR f:,~: 873 e '.tr a#'+t..? 7 # C' iifi~r.~~.}.. 11'il p_'..--- -f _ :'f•!{' 'l tf c'.l1f A617 City,oi Denton,, Texas? General 'Fund STATBbIENT OF APPROPRIATIONS, AND, 71PENDITURES!AND jENCUMBRANCES (CONTINUED},,'',. year'ended-Septembar'30, 1977 Expenditures Expenditures and Revised and encumbrances appropriations encumbrances prior year FIRE - i Salaries and wages $ '875;145 $ 873,•458 $ 802,-441 Supplies !1!2091944 20,954 18;837 ?:,Maintenance.. 1120;095 210091 21,038 % :Services `.37041 340830 26,x263 Sundry i?: 16 33 3 Capital outlay t;)11, 446 110669 x,r 4,0288 :"4-082 Insurance I 01;<.;7408 70203 TA ~f- STREET AND BRIDGE El(Y )")A ($0&les and :1ta968 172j304 260}946ira,, ),268,>344, rt<Suolies ►Q O~24 MO 210094 a ji .401,289 t);Idaintenance - 281, 860 288,2i4 -)'ioj) fxl2e4,Ob0 ese"icea s}+> 401)UO 2069731 :j'1'6ft691 {'Sundry ty [ 500 ,44" r i u t tc~n0 - Capital outlay 600 1, 887 z t, 20; 691 903 "1Yn fFanc i 1 Tautzli .?8 072 23,288 d _ PARKS'';?- ADMINISTRATION I01 101 ;(AND PARKS C,el 6?.C F:o1iIt self{t~i+ 1,;, Salaries ahd wages 1188, 392 184o816 v Sri f.:,r177,, Q22 tai t. Ptlppliea !'r 328 210536 % F443;641 ~ rirr27 181 ui Maintenance- 25,615 24,667 " , I ??~37405 34p107 + oo F Ui A18 I Services 1': idry ~~►fi ; s : c EV A10 188 227 Capital 139283 130487 10,318 Insurance 4p967 4 93a~st) v a`~ O1, 23Lc IKC { "-d9S;Y'AFJU Z84i"J32rir, 2840o= rk, it , f: t J 'A %01 i PAAKR~- SWIMMING; 1a00L ; rSalaries and .tlages c40,=303 19, S96 21y 806 , 823 ((Su pollee :1, I r'H 3, 888 3,870 Gi s, r, , 3; 8211 Maintenance i.: %,,S, 220 2,907 "u $e0Vjbds 1'.C~' ~Z: raj 534 2j713 21174 Capital outlay 800 329 Insurance 433 452 197 32'01 All 54'3 31,759 A'48 ,F x . W C1tq'~6f Delit6h texas' General FUrnd STA~`~1~I~T'df''APPIl6PE~IA7'I0~15~f`A~fi RkfiRN~Y'~'t1~tRS„At~b'~NC'(f1~t~A'NC~S ~CON`Ct Ro$p} Year"ended September 30, 1977 Expenditures Expenditures and Revised and encumbrances appropriations encumbrances prior year PARKS - RECREATION Salaries and wages $ 72,226 $ 77,870 $ 54!11209 Supplies 17j502 20i223 11; 716 1[aihtena"dce :$;'860 2 738, ' • 1 566 Services 64 752 78 643 ' 59' 937 ,'apital outla 1~'1114 1~ 174 ' , , '953 Z'rneiirance 0' 251 218; t: .,I t 223 "I~8"6S5 "J2 : I" LIBRARY t9 tli,} f fs t }'t:I r.f Salaries and wages 120,152 117408 t i " 1104, 648 'f lies i YA {11 0t18001- -jr-p y . ~a79,188 ~T i ~}ance ST (rill i "t,8.~ 7$4 1, 5A9 Serv ces 30 33 27' .0~11 a! ib•,ya c. i9004 159 588 -1 t4a.", Ij420 464 TH"T" --1750559 1580M AIRPORT Supplies ISO 72 165 Maintenance 3,451 20173 1,687 Services 5,300 50150 11293 Sundry 300 230 132 Capital outlay 2,000 340942 50349 Insurance 1723 I j708 1 048 A,19 City.4 i`De,eton, TOXAP General Fund STATF,MM OF, APPROPMATION4i AAP IMPEN)DITUM ANN XNCUYBRAKCj$ (CONTINUED): Year ended September ,30, 1977 Expenditures Expenditures and Revised and encumbrances appropriations encumbrances prior year NONDEPARTMENTAL EXPENDITURES City-county, health unit services $ 52, i00 $ 570064 . , $ . 5)., 450 'rater-agegcy: r council )2,551 10,23Z10# 090 3.5,,742 State grant: r _ - 5y330 y 0,, p of , debts :aAd,i°t, ti:., ¢3 miscellaneous 19600 47,461 21,924 Contribution to ri 3.yamber oaf: VI! 1' J. , r,?4'I s-gr.,1 e; i (+a t , t? OommQrce~,,,c~ , {M # 570 4,6,~4 t 3 8~4 85 5`~+ '~~nsat . E wl Yi , I 167 i.1 lout, tsc#~ r;k. Ili"() CIL $50'RO701,75 $6, 131)8Q,Ir1r;.$0iMol719 r3~` ~'t1 ."ii..ti`_ ~.r_.rr. "~ti.•f Lrc3iS I k,ijt P ~ i~) ?`s f, F ~~ta': :>E# (.oo {~irii,ra dt;3tyra'? e's0,.f RGi: f V , 1 o~ Iwslip. n1 AQ0 City: Ofr Dgnton, Toxas; General Fund ; ~ STATERME OP=: APPMOPRIATION,9, AI(D :E,X,pErTDI7VRE$,AND; NCUMBj;ANCEB (CONTINUED) Year ended September :30, 1977 Expenditures Expenditures and Revised and encumbrances appropriations encumbrances prior year NuNDEPARTMENTAL I EXPENDITURES City-county health t unit services $ 1 52` 100 Inter agency; $ 579064 $ 6i; 450 council F 120851 State granter ' 10, 23E ; . 10#.990 5,0330 , Bg -dbbt6 :sLAis,:)~ E5r,7~2 miscellaneous 10800 47,461 21,924 Contribution to t: .,Chamber 9#; . t t , s I , is CommercQ; f; t u 1442 =570 ~46 -4585 r R~ ~ I ~4 S E'ci , .C [r, 01 $5►~~,T,,s.',/6 $6, 1310 $Q11 ) t$'Si GBQ#?.79 t r -J 8 $I If A+20 THIS PAGE LEFT BLANK ZNTV~ITIONglo T.,: ,7 K iSPi ,:k F Csi) i 1 ;,~1 ti '1GiYI) f;t+f o C. J. t :E2tY,C, z.Ctlr.~r.Kd r9Rtt.~~~~.1.aft (v J; L~Er. d ~C;'ty;f:r i7 _st+~ +~yX.. '1 fit ~J,I f'3:1 A: fi, t~ff~~ ~h ~"I fi !a ~I; Z,{J~f!! fTf: ':'1 aw '.;)~2}fl '?ff .~.'(11r!'~IGiU"i `.)IS 'ir (j"{• i i A•1i City of Denton, Texas Special Revenuo Funds BALANCE !SHEETS September 30, 1977 Total ASSETS (Memo) Cash $387$09 Time deposits and accrued interest 2$86 Due from other funds 4,753 Grants and entitlements receivable (?tote A) 1362917 $531,365 AND M(D BALANCE Deficit position In pooled cash (Note B) $ 171003 Accounts piyable 48,974 Accrued payroll and payroll taxes 10337 Due to other funds 3933 ,1155,71 , Reserve for encumbranceb 3,803 Fund balance 679091 $531,365 The accompanying notes are an integral part of this statement. A•22 y~:rr r i'. .Rr c+ r: , Human Miscellaneous Criminal Revenue Services special justice Grant Sharing Pro edt Revenue Funds $ _ $370886 $ $161o356 ,953 41498 _ 265 r 61387 i23,330 712W $10,885 $495,169 $7,455`.4! ih s $17,,856, +r' J' r: _i)~. 9Nt ;71~` r[y f i1'fF., Lr ri,'J i ,[i3 j'Ui4a'4.f ,t.-;.zLt ,:_;r!',✓~,'e rS i,^~,t,~~ $ 9,548 tEi$~ )5 $70455 l+rn$ ~exL+'•n, nN -r _ -°q ;~'A9;767 207 1,337 - 393J57 V'441 924 w:Srri f c2,498 - ~_tr1+ly~Db"r,+r < <; i 2'50'0747 $10,885 +'''}'$4950169 !:~ai~`$T.~.4Sb; )i: tit^,~t oi617,a56; x'f . 't :t i i 11~✓ :t i i i ti i a ta,i ~ifj~,j,1r a21;`,.:0 vfso°vL. titre,,, - ( S ii t tt, li.,,3„ ~~J .~u.~'; `f~fY "[lr.~,t~l ~f ~I '•i I 1E•;r~ Ctiii, ,Of: '[~:rfrv.:')1c;)~ t1; r)'li~Li'''i ,;,i rlUaiJ)17,}iit i:l111 ~~U .i '1LSt~ i,f+'i ;~'J~(i..l' +)1; +'~L; %sJ11S~4 `;!71 ~"'~~Il llt~i!30~:/+~ )[l § 4M, 4 City of Denton, Texas Special Revenue Funds STATEMENTS OF CHANGES IN FUND BALANCE Year e,ded September 30, 1977 Total Criminal (Mem _..~o) 17 1 Hal _ Justice 'Grant ance at October 1, `1978: $285x , F ; 309 , Additions , . ; State'-grants ,158 Contribution from municipality 81979 380325• Con,.ribution from civic oritanizations ~f McKOhna3Wust distribution 1) 871 I,i4rAry `fines and me o isle 1$'990 Rente.l fees - Civil D Tense 1! 37l airplane Defensive driving course fee.s 258 _ Federal revenue distribution 4►265 Interest income c~tat 6130 236 26 0ol Deductions r. aeia`"jkye8 and wages 'Juppp~1~ ies , .481757 'lei Sal MalNtenknee 4l852, 1, 321 Carces 227 _ P UV IOutlay _ 850695 l TyrAnsfer to General 07,459 173 Fund X32 301 Tra?r~ifo•:.}p Debt Seri+_I'ce"Und f', i1)00 ~`4 ,C l ion to city- Minty it, heath agencies Civil DefQ,hse airplane ex 162; 780 Defonsive driving,course expenses 846 4o755 JB3Z-5 Balance at September 30, 1977 $ 670091 $ The accompanying notes are an ante ral g part of this statement. fA-24 r )111110 T40 Human Miscellaneous Traffic Revenue Artirecession Services Special Safety Grant Sharing Assistance Pro Oct ReVenue,Funds ! $253,973 $ r.; s 21 033 _ - 280 Boo - - _ ,t;! qtr,' •,L979 - - ~ ~ . .,1' 571 - f!('r. Il ,7 l,! 1'.1 ' 1'il i'flt 2j. ~.'t ('14~a3 - 258 - - 4t265 - 607j 289 51947 - - 25j810 191 - - 833;0'$ $73 21,033 6,138 13,755 56~ 21962 „ _ 68,871 - 140051 158 ; 403 - 198 10, a 58 - 332;301 - - - 750000 - 202j750 - - - 846 49755 WIT" - B -Im •2'3. sof Ie; d'lI $ - 50, 747 $ - $ - $16t344 memo" . A•23 City of Denton, Texa3 Special Revenue Funds DETAIL to MISCELLANEOUS SPECIAL REVENUE 1UND8 BALANCE Year ended September 301 1977 L1ons.Club Park Project $ 407 NcOnna Park 'Fund' 80188 nidilttlowler Library4und 60243 Clyde Wright Memorial Fund 6 Civil Defense Airplane Fund 261 Defensive Driving ,Course Fund 163 NTSUCStudent Recreation Fund 125 Denton Tennis Fund 10 Denton Garden Council Fund - 10 Denton insurance•Agents CTiwe-Fund - 48 Biegntennial Organization Fund 1.0407 $16,344 trii' 4'si3i7 r YSC iii R~ .r2, A•36 City,,09,, Dentanr, TkQARP Gegerajl ,~,btY Ser,v,~~e end , PA FAACk: $eptegbgr .40, ,1977j and x.9,78 ASSETS 1977 ~,1 Time,; deposits~ aqQ .accrued intejrQet,,..) 1 0 ,457 'J47 , 617 $ $0 ` 38 t it ,I+~~? rY e , '~t':i . i ?t; [ f ~ r rr ~ Y.1 1 < rr17 Aa 7 .~Y t,.. :f. t ir.t y 7{t, ~Yy >/1 ~1,, p X;`.Y ]'>a rorj;jIi I),/Wi i ~2i i~j1 3,1111 tY'Ef7}. .y.: FUND BATANCE Fund balance tiu {'rx'~.t'a' $387F. xT. $281;,438 11.1 Yf 1 tf c 80A% tv oI y Is~j~ .1~ 1 ii SI, q )f1GifA brau'~ f A,n City'o3' Denoh ` Tdxae G8nOe al 'Debt 9ervic4 Ftiiid' STATEMENT OF RE`lENUE,'1 'E* 7'ftJW9b AND FUND BALANCE Years efi'a6 Se t m~er 3b, '4077 'Acid 1976 - 1977 - 1976 Revenue .,Budgeted portion.of taxes ~ co leot~d , Int"Afeet e+4rn4d .on investmert~r' "f t,$,. 825'270 $1, 039709' j Transfer from revenue sharin 5000 g ' ""'7 789, 000 ,T75T0 1t~100 n ~c+ T,'I3TTRI Expenditures Bonds retired 5619000 6100000 Interest 503,411 Paying agent fees X692 3`$87 605 UFS , Ek&,q ~~(bEFICIT) OF 88,~$NUE _nVER r.,l r . u t E'A'PENDITURES ( 222, 921) 182, 028 Fund balance at beginning of year 2800438 _ 1111 410 Fund balance at end of year $ 1670517 $ 28Q,438 ~'~'~""~'~c'd~Pa`b~'~i~g' `~bot~~C~ ale'` ~►"nj `!~t`egr~'i' pxn~~:,~f;a~~'i~`'l~~`el~`e~en~' 11.E r;~j IS"'pAd9 LEFT BLANK INTENTIONALLY 'J'Ac,~st} Ui', r: .:~)s,l~r nfr, ~r~r ~rf:f:, ~)Is'P A•39 City of Denton, Texas Capital Projects Funds BALANCE SHEETS September 30, 1977 Parks and ASSETS Total Recreation ` (memo)- Bond Fund Cash $3,541,749 $1,071,867 Time deposits and accrued interest 130921 868 Due from other funds 627,809 Grant reimbursements receivable 330,162 Street Assessments receivable, less allowance for uncollectible accounts of $93,636 177l649 t:~<i of 9 fl e,x:i $4tr ~lls2i$,0 $1,072,835 LIABILITIRS, RESERVES AND MD BALANCE Accounts payable $ 258,281 $ 88,846 sae to other funds -405 47.221 --459,g86 ► 502 , Reserve for encumbrances 10381,191 170,233 Fund balance 2,5041597 'i731770 $4,691,290- $100720835 The accompanying notes are an integral part of this statem9nt, .r, perks Street Community YTBU Street Dove Yop►aedt Impra~iem~nt Development Special Assessment Gran't ' rid Bond blind' Grant Fund Fro Jec is Fund Fund $ 7 738' ` $2'1'i3 4 5'4' $ 120879 $~7 513 , $226~$98 2,302 , ,55Qq~ 11 4421,3,83,. 1080230. r ' ,0,,¢51 239`i 331 ; 90, 82$ ,1_35 177,649 $297,163 $2`" t p''; 489 $211 937 g f~ i 4 4 f t:., f?I i,•i: $:771, 13 4 333 "ice °w._..- I ; sr t! { ! • f i c. ~ f----•~ $ 58,656 $ `130i b97 $,3 _ > gar y~ ,nE 3~ Sdf~ 4f Tj•~333 LV, 184 9,~(i , , d26 940;178 201 755 .~7;'J fJ d`.[r~'IT i•?i t 'f i,', f,1 a i~16,'Y ~ _ 666 .00 - 6W' 14 8 0 3 . i $Lg ;YB : _ $2ri t' 9~f1 9 $211,937 $87v513 t,n 0442,333 c k. ~.f=.. ,333 i f. f f IU aIf ~i~ <4 f},k'~lT~,C,j1;,1.1„)P. k•9! City of Denton, Texas Capital Projects Funds 3TATEMEM OF CHANGES IN FUND BALANCE Year ended September 30, 1977 Total Parks and; ,Recreation , Mem Bon__d Fund Balance at October 1, 1976 $2`,396,$26., $ 93452 W tions '`Proceeds from sale of bonds" 3 800,b0o., Interest and miscellaneous 1570105 84,876` Contribution by North Texas Ptate University 64,500 transfer from Street Assessment nd ,~'y 1; 19, 089,, ; ~'rp.asfer from PA'A""and Recresation`' 7: -.Bond Fund Grant revenue 400;000 w. 382 182 86 79 Deductions Streets, curbs and gutters 2,1870373 Pur hase of land agd right, Y".. 74 TP4 +r Iding,:,tapd. impkovement n 3 di quipment 865 ~d issuance 14'ai s and ,g ~ s1T~ ' miscellaneous Transfsr to street, Improvement S`~8,l~ 7 .$14 , ! Fund s t~ a , 19 088 Trans , fifer to hark development (lrant ' - 19 _M Balance at September 30, 1977 $2,504,897 $ 773,770 The accompanying notes are an integral part of this statement. A•~Z 70117 NTSU Park Street Community Special ,'Street Development Improvement Development Projects Assessment Grant Fund Bond Fund Grant Tend Fund.. Fund $ - 51,182,274 $ $ $ - 2,200,oo0 + 67,606 = 51534 .19i089 1 - - 641500 190089 + ! 1600 239,334 - 142 828 639,334 142p821 ;i ~.ra+~„w r , Y W~20177,421 3 x+32,737 i~A898$~ ~,3i)18~021~a1 't r,,•:> z+:' r ti , 498, 668 108,880 !.I 7, li3:. td,' . l r,?s 'tJ li f. f:ry.:1 r'3 _+r .'11 - k { • + s; ► 20,663 ''F r t d,.. ; ,r ! ; . w 19;089 • !i`r"U+' ;7"i!"fin: ~?i1F'-f;{7 a;. r~ ~ +i.' ~f:~~ 149,828 )'r~78,j . $ 160,666 $1,6180148 $ - $ 520013 $ - I'! `.T'Trl" !n 1" !'r!'SraI!?t't!_'~! 3 ~r,t.l! ~ Pr~ni 1rn.f x rtl. r1OX, a'! i f!U', to , Cit1'0f Denton, Texas Electric System Fund BALANCE SHEET September 30, 1977 and 1976 ASSETS 1977 1976 CURRENT-ASSETS Operating -Fund wance Accounts receivable (lesw allo 1977, $300;825 - 1976 for uncollectible accounts) (Note A) 313441,9$5 $ 2,483,315 Due from other funds 790'367 3800$9 Inventory of fuel (Note A) 11140,585 556,234 Prepaid expenses 437,858 13,718 Dbfbrred cost"on 'Lone Star Gas (Note F) Retroactive, tate adjustment - 478,821 Take or pay deficiency - 112340062 Rebate receivable from Lone-Star s';, ;r1 Gas (Note F) _ 308o,816 4 O" r ~ E 1 , i :t E RESTRICTED ASSsT G. , . ~ Revenue Bond Debt Service Fund (Note C) Cash 11232,251 458 Time deposits and adcrued~ltterest 10t.,t241216 1,51$,080 Due from Ele6tei6t0perat1dgr,rudd T C, 310,734 - Revonue Bond Construction Fund Cash 098, 1301 236,828 wt. s5 840,762 Time deposits and accrued interest 92,231 581,572 Due from other-.Electrid System Funds 80,218 Revenue Bond Reserve Fund (Note C) ocapb1 : 194,487 Time deposits and accrued interest 1,923,835 1,968,789 System extension-and improvement ~'.ftpt ty'"in pool0ot -O "sti (No;t#B,Af*dd C) 't Z,,' - 77 t, '447 14 1 1 UTILITY PLANT INC l4f~tVWICE tNote A) `~t r J81 is t r :'<<r 0;326 LIM Od"J'ans~t , N~prodaction and ,..r. .p - 291 ,329 291;329 E eotrio pi4JA distribu- tion facilities (less accumulated deppreciation and amortization of ~1 670170 - 1977; $x8,333,408 - ruction in ,73$1730 ,18,6880055 Cons7 25 proceQS Mt ~ 1 , 1 , INVESTMENT IN INTRAGOVERNMENTAL SERVICE FUNDS - AT COST _ 1800747 3050296 $4105250132 $390201,688 The accompanying notes are an irktegral part of this statement$ A•34 LIABILITIig ~ANB'S7~$~'I~M 'QUITS 071 1976 CURRENT LIABILITIES (payable from Operating Fund) t. f Defici'position in''pooled cash (Note B) $ 3,617,043 21445,451 Accounts payable 1,227,438 1,234,444 Accrued payroll and vacation pay 1060321 35 771 Du7 to ;r~eatric~q anti other funds 401 'y ; o de 'it ' d 93 340 n! p 197 212 '169406 Ac~~??xde, tone S ,r payment (Note F) R,troactive a e,adjustment 47'g;g21 i,' $@ ,gr:paY ,Q ,14,1noy - 1' 29'4 062 Rebate payable to customers (Note F) 205 677 L!ABI~ ' IFS.t;+PAYABLJ~' Ft O~R6TRICTED ASSETS Revggp ,B4nd Debi " e }ce Fund rt 1 Rtynh' o bonds VA within one =r,n f r;tf, I 44 sod A 2 000 I dt }inters ~',:)~,1v, '3dY, jd8 atrlk?-8 0948 RevA end Cott a on Fund t aat f r ' X84 f p Y A ull e a ab ~ d" d 1, f r ' 79 5 0 !1 430080 l0 280 ~i$tper f *A','(j ;r vr! ru' ~ LONCr'Y' .~~T (Note t'Ci~ nrr,i.Fr r'i•~'~t-3b Revgpue n13s pa~+gl ,0 xaluaive of ma.t'ufr~ be-due wit n' no year r1 o00 c<~8, i) 4 u 1.6r., IMP f; ~:rfN>°,r1F ''ryfltal;'1~St,jC) SYST oQ i Jai tr , t~ 'V a , P [ t ; l a" e l ij f[ Res A$ F ~ k!4nue boAP686ingencies ij'lwiovo ' 1,049,780 1?4 sy, ~e~a xt ~ ip,q,appd;;improvement 2,88b,441 Un.e H din ret let iii v'a'luation of utklity-plant in-service (Note A) 2 019 909 2 303 069 CO'ntributions in aid of construction 161,203 124,944 Retained earnings 7 968!780 7 308 7'35 F6 0 a;~ 14p588-OW COMMITMENTS AND CONTINGENCIES (Note E) _ 1 n rr.. t r, t t: ; ,i ri j °t t:~ 1 •i r; q I r.•t <.Y 1 rr i Jl 1. ~ •1 ~c : a41~) 528 S YA21 :~89~ 241y 686 rAl35 s , City of Denton, Texas Electric System Fuld STATEMEn OF OPERATIONS YQars ended September 30j l977 and;1978 . 1977. IDCOJIIe EiCustomexs Sales (Notes A and C) Intragovetneiental 16,id2,6`3 , Resale power, income 758;lf9 12'71f,b(~ ; Other 5Q$`2$4', g88t~ 0 ''l 5$2 Expenses d ' If ~y~ 85 2 Salaries and wages Fuel 1,057,507 99,1') 571 Supplies 3 ,1,07 g 389 67 Maintenance 033 },A+Ir u ranch( l,:,o 7 inistfi~ iY ,,services ; ea ~rlf~ •l, all ervices 456,9 4 1: rlsyc jad debt ,tr~t3 , t uttnary r'ti t7~(~ uO p. ~ ' jil(~ el~ Tl c• ( Operating income nefore depreciation <,~lqD~ 'eg atip (N in 803 X95 j'f . 31f~ 9 1 P, ?gg Operating' income Interest income 319841354 2'767,854 1~~>> B dnterAt _ 23~4 ?03 4 APO( ees ~NC~IHE l~=+,sr= ,vc,°a,;rft 1, n ~g] ;c.i ~ 111~)k~{:1:,~~ tli;i{~ {l,li? t' '1,1 /f71;~)f.lfl.`~~fl~~,~J)lV~~ ~~'il(g'' ~L(f,'•i "!rill 0+5%r flI1: t1 ,l: f.^aIC11 jrC~ra_ v It, 1.e/i [l Thw: patky j jig: {~htp :.,r °r> , '1 tot r $ aro an integral part of this Statement, 46 i 1 THIS PAGE LEFT BLANK INTENTIONALLY ' 1i_, if ot.I j 1 i ttA 1io ;-wi i 'rif t ~.~'i ~')~,:aC o.~ ~fLi r~~~'fy {'%'{~1 ,f'(.~'~~j(. Cii~ t:. ~r ):'}'1 .IS t ffl ~VJ i"i L~[ ,ti"I``LL E1 iv1, a`i f: "f .A ~.tll Ijdi~Jl~i fE'r.[J Y: ;,fl ~r~ sJ_: k M'7 -7 i City.-of Dehton, Tex!a Electric System Fund STATEMENT OF (RANGES IN SY$TIN EQUITY Years ended SepCembtr 30, 1877 and 1976 Reserves avenue x ens on _~,contin enoiet.~ and u 12 iravement Balance at beginning of year $1,9680789 $1,768,971 $2>885 447 > $1,600,949 Additions Transfers from Operating Fund 149,533 1990818 2,213,534 ,233 Contributions by 1,869 customers Net income Transfer from ` - reserve for extension improvement for additions to utility plant in service (Note C) r ti 2,"'~I'33~ T Deductions haduotion equal to extension and improvements made during the year from current revenues (trans- fer'to retained earnings) Amortization: of 483,804 3840735 unrealized thore- ment (Note A) Transfer to 'General r - Fund (Note D) _ Transfer to resorve - foe extension and improvement - Transfer to reserve r - for revenue bond contingencies r r r Balance at end of year X2,118,322 $1,988,789 $4,818,177 2 M 447 The accompanying notes are an 'in ~gg~Al part of this etato"At. . '77 IT- i , ,;;a;, , . :;•~!Uoalribrltiana •,l Unrvw•ized inorement in aid 1977 in valuation of oonatr>aotion Rot..,~, od ea rni n ge_ $22303,069 $2,886,227+ $1240944 $126,600';.$7 ,300,733 $70444,031 t ~ • r~rita„ t_1 t:. i r' .'I ,;!T.;, .`i;lr~ rL', rli,~i~ hi~.1., r - 360289 (1065R) 3,f 30393j476 ,rr~il,p' r{~- ar#.fi.#• 1:r.'.~rri,t el:,izt;l: .,,1 2,158,627 ~'t3 'wl±itrl( (I~ it duty; 011";i3t. ;fr.j i;,rJf 4 :furl ifll) f" ril?,`i tr ax!.'t Ita ~rro~, 'to9461"804''z~ tr,'344 738 r ~V J 4t. Ij, i. 1 f Y t . s.r ~ t trfi ~ itr; C. • ~ halt j ;Faa~~ !V'i'~l,J~ ! aa,. ) a+ ~ fftf: i7rl:~ft 'r,,l i !.t,tU t11 j-'11Ut r.l!iiafl ~~i l..l t. F. (a. ~ E'r{i~), t r`ct+ ~ `3'tty lf}f ~►cf"~a lrr , r r,ra! o Lira @ 3 Yuta e;fl 0j [ 1 t; „ .=ssi;~rr ~ I,r'Wei l t'f'ilf9il t) .,Y Yta9 ~rir. ~ : ~~tCafaf.tS ;Cf <aIUY,) 1ti'>mletsrrl'r~ ~a~+rf nr;~ M )'+r+kt/a f1l?JJfrt:fr') rlf,)'S't ,iicfr +Jr '•ir~.i:)trtf!i t! f,lrf "I tj k f" / r I f. t', ~j l'ti l7 4~r r { it Par f } } J;-1 i' >':'rr<f~,, ~arrsf1~~8 811,607 tft, (+t,! f)) 0'2~ X34 r, " dd'o0133 II X) (``a f. t'z tb }14t :7 611,a $20019,909 $2,3039069 $161,?,03 $124,944 $70988,760 $7,306,73lf 4. j9 , t r ' 1. City of Denton, Texa3 Electric System Fund STATEMENT OF CHANGES IN FINANCIAL POSITION Years ended September,30` 1977 and 1976 1977 1976 3ourcee o! workinp° capital From operations Net income $ 303930476 $ 20168,627 Charge not requiring working capital Depreciation , 1,050 803 1,0, 2_1 522 t "Worki~ d capital provided from operations 4,444,079 30180,149 Repayment of Investment in Motor Pool Fund 1240549 Contributions from customers and developers Z~8 259 ti 4 ,f @imbur a a~gtgfor cost of fixed (1, 856} }:et~eete@~'~di+~i lfo oi - „~„7~,981 3~"~'f8 Applications of working capital Additions to utility plant in service 924,883 1,221,674 Reduction of long•tepa debt 1,044,000 1,0320000 Transfer` to General RUnd return on net investment (Note p) 856,168 811,607 Net changq_ In roetrtotod assets , and liabilltles pAynbie from restricted assets 1 521 200 7 731 ,fix F# ~,Oi) t 8 (DuRgAss) IN ~Nf1 GAPITAI, 259)836 (899,434) cqp$ t 1; (Oo rloit) it beginning dW year 1 10? 046) 487,812) tMQ ing cg.4tj..,(defio t) at end y8ari e i f,,lr, -rl . a $(1 C fl~,`; A•4b , , , City Of, Dent0h, Texas' , El.ebtric' Sybtein7 pund± STATEMEWVOUCHANGTS' IN'F'INANCIAW!POSIT TORi (C0TINUED) Xeare~ ended September ~ 30i 1977 and 1976 1977 1976 Changes in components of working capital ` "Irlbkokse (dAbrdaee) in durrebt.. assets 11 count6'~reoeiV&ble a + $ 350 $ 337j427 Idventbiy784 , of{ fuel 784 33 1 - ~ ~ 17~~491 Prepaid expenses 94 138 (141661) Due frbtii.'other fundAf~, , ' 41208 38j099 "~Dpferr6d,cbAt 6n LoitVatar Gas deficiently pa)nout (768`j241)r' i +11 234'{062 Rebate' i4cblVable f~A #;`6he Star-'tFAd~'iti ~308,b~1,8 ~:i,r,,r~,i, (IncreasW''dboksase in kWtrent ~,",,.w rs-,0AiabilitiU,za r,>>r3 C'E, 7::rr, r! i,~r t ici,, r~t•r ash. (11111;592) 276 0(5(893, j80q; Accrued .Ooun_~$ pa~►roll and vaoatlan 70 (70,860) (8,946) Due to restricted aped,otheir _ funds (308 428)1 Customers' de oaIt (27~809)a,t>i`}(9;918) t r tr`;.'. N`..Retlat$ 44yktbl _.to customers (20$)677)' Ace ued Lons stir Gas h t r , t i~t f P yro~Fid~;)t r _74611241 , ~().42 4 062 INCRWAU (bECREASS) IN WOUING CAPITAL $ 2590836 $ (6490434) s The accompanying notes are an integral part of this statement. '~t•1l 1 C1ty-:of, Deaton,'+Texas , Bl.ectric., 8ystam, Fundy OTATERINTi OF!BUV'OXTX,'Ai ANA'ACTUAVR9ygNUB year, 'endet+iSeptoaber,30i !1977, r Revised Actual budget daet Actual prior year Customer sales residential $ 8,488 Customer aales 1000 $ 6,880,433, $ 4r148;394 ,;CQA~tABrCiel ,:r. •1,i::r-e~ Pop l.tles , t, 10j341,00010;383,040„~. ,7x,792,387 Acsa9C«~ to-dawn 120,000 i o; 147, 268. r r, i 143, 881 rental ,:r f„ ,,'r 32 000„ Yotragovernmentai sales ► 3l,x932-~ 30,043 6-tpo.td pod high'epy,;. k' 4471 090,-:, r $$4i, 684, i )ci382, 990 lighting}~?9~~+~ Resale power $~~A x ,(,tr,•~?4~4i1.),,,:r,)F; 126,244 i►ICQAiet; 600 000 WOW .r. 700,682 09.4690, .0[i on),'.04-ArgAd; off accounts 1 200 5 199 Roconnection fees P11-680o 0 p3b2(,r<r,,i„s2f176 111scelianeoa;4 97 00 House moves ' 78, X81' F i~l,: 180,46 8 0, JwLA-d (Oys~., ' TT } 0 J t4w6~ ( ~ P li'ii) 5' ~ ~ JJl;rt 1 b,tf:/-Ja lr2sy' i,7033,rjrI+J:264:841 Z. 6V) ;17"4' 18,000 17,942,176 r, A3°889854 r (Ad#uotpent (8(•?C,o"eroihl(~hA.fi~.6 Interest( , ~,;r,-.>rf•.F~.~ ra.vunue) A 264 841) ~J.~i' Cr Si~ [',,'k) 'trap, wto !)<)U'l-)f)A $17,708. $.j3,406,013 (Jf:t.,C~J()j ? d£B,Gc": FI'I ('r:(Sr~:3fi',`3!]} ;(ritiiFi':i ( !f}:,,,~.~.>>r_ P, u'kdI Io J'I;,q (~;1~) x3111 trG €1F ga,7ryr, alt, f';nn"lnic,~,:>r, 6611 m42 -r ,Ito:=',CI I°":CitY,WDenton'r,Uxas Electric System Fund ='Ia~=,>ti3:%;;9 tI~L. 1110 ;111"~t;>at<~~~, -~0 1, STATEMM'40F, APP90pR7ATIONS'rAA'U`t&#PZNDITURES, ENCUMBRANCES AND TRANSFERS 5~~1 f17,, '1 'i1Cf).7 i{':• ~?'.it i;t,S . Year ended September 30, x977 Expenditures Ei(penditures, and Ite'vised . { rpncumbrances encuwbrancee appropriations and transfers -prior oar ELECTRIC PRODUCTION Salaries and wages $ 5:$,698 $ 506r913 3''.} 491',383 c~Eguplies ;1520171. Maintenance 108576 185,907:1,. " '-85,295 58,769 Fuel 10,936,383 0 998,07311 ;m 7;3099508 11,242,038"5','ti~. r x1,139}6S7r , trif,~r23 1018 Insurance 1080931 1099791 -r;l'1r<ei 4',852 Sundry 74 t,137 Capital outlay 54,098 11 215 17, 872 Tr-,ffl,L;dj')%'Jj tit L27;785 T~b'L0,8~f'.,C~i!~-.•,rG1v•7`,,.: ELBCTR.IC DISTRIBUTION ,:o ,f; AND USTERINO V10 801aries add I t< N +1'~',;,tilAges r,lf:f~ 527,686 w:1 542-E654,, If.t<k1;4011,578 8u plies fir 22,29'1, 22 01i,.% 1"'ibc,18 901 t `x1 r; enanco's t,tilt, . 101,90d'` 12?r961 108,911 3er"vices 21,8 2 33$014 14,701 )oK,Ititfthce KF,t , i' =j1 17,721,E , vw , \'!P? 17,'146 12,047 i Su~ti= 500 107 10754 Capital outlay 292 92`9... 299 $90 430 S78 ~I~f,l,i ,_thl')Sf~iW'1dCt') PRO RATA SHARE OF - ,rr'trlr;ua,tr iat,QlbITY ADMINIST.RA4 irCr'~ •rf,1•r ] TION EXPENSE tit €;,~)?rrr.'t1` Salaries and y~niY.rf1 :or:ratl {N!7t:,c A,aqs ( f."' , `1)9, 1) 114050 111,798 F;na 1,98,010 Suppllex 3,305 3,426~4%11CJ1rA 695 (P188NR,:dtenancW84.t~,,,t} 2,695 2a1lf!f)nvclxfs 1 867 derotces 1950280 1930038 er"'I Pg53"' 181 Mundty 30445 11030 ln,fwr'3~ 7714 Insurance 762 s::?b7;o n•irxlti,i '487 (700 dap'ital 0*110 "Pa) 1 880 1 45?~nnr~~~vr~l~ltt.4~,30. {i)Sc:! (it8t , 9f~ f ,~nr.'fi'cTn To-,7 4 1 p r,' j ! 119'('1 1'> 'll;7 111)1 tf.'1l:i~ 01 C F, V) . , k n X43 riEWWW ry kp {•i ty Of Denton, Texas ;jLtectric-Syeter}, Fund STATEMENT OF Ap})ROPRIATIONS AND EXPEN61TURE&, ENCLWaiiAOICES WAND -,TRAi/3FER8 (CONtINUED), Year ended September 309 1977 Expenditures, Expo sad uxres +~r r ,Revised encumbrances enC►xmbrancas d,:+~,'„rl.,,•,, i. !'~proDriatione' and tra----- rio.r ear: NOND~EPARTMEN EXPENDITURES f -Reserve. FuAJ1I Sr1 i' ? : c d re ui rem y cit1t,, 01,Intor'est add;, 5917b0 s 1,,( ' f i 3r.r,r t rrgc~emptLoll, i t r,, k.:re'I iransfersremdht r , 11, 867, l1 867,227 T 1;898;808 General F inch 10 r i• Admxntstrgq Gt r ~iV f F!? 1..:.w s ~,~~~,~~r~~'i~~ is61 t Sl'ia ~ 11; .r Fit 'r,~,.. •r ser4iCE9 466,952 458968 R(~d,u)ra ?!m _ . 106.3 t) 417 ~t. Y. , r ~sl ~ list; 1*6~ t ryry vet'm~et 8760339 $56' 18tir.r ~r i1iF,' Q~.r1 ~ x 811,$07 Bad debt esa r ; 1 130,210 1200120 e,;a,248 889 I t1v,Wndry t V~r, 10 965 r±'s,rf {'(lfi r j 71,12. 317,167,583 < 180852,438 16N B13 ,801 Pays, _ iy fS ~(r ,'s;:~ (~sr~;, ~-r..r.""~~'Z' s' } r ,~.~F,r,~rt: rr~~.tlr1..1., MUM ~ tErt'11s To COMMERCIAL BASIS . ~ Encumbrances - x,prior year s~ r s; , C.,': Tr,tnhfers to 126;889'zl,J~ tT47t%205 bond paying W6 1 PIX3 ~Cr7'r W 0 , vonta t-,>> • i r; 1~ - ,C~Apitalized4'~ t; 'r' ' t: (1,887,227) 7) •(l'j956,308) 1 expenditurog ` (1287 `i' • ; V,t;?xarnsiers to,o t,:t► s s ,880)irt1{i. 588) ! !S', v General rqn<4 r- tftr ~.r ! ,)v r f% t, lift return on,net '0for,l iWl-, t investment 3 f0fia;°s,iaul 607) ~~e~~•;Eddtim5raacdti.?~L~1~._.,. ~.tr>',~}~r._._.. current year (1580486) (128,$86) Vacation pay accrual ..60 77. ...r_._.... M41 120873,318 $ 9 615,1837 Y 1 N~ $y. t'^» r i %Id'PAGE LEFT S FBI iU ~ : J 1 ~ r . Ertl f:'t It i.: 'J t7"B i {7'I " rtl "l 1.3J"I i;,:r tf Y 'o1" ' er<2 k C.~ Iirfll t'):';;; f?ii P: F 1- tr f~, r'f 1T is i 'i(;i~A;F;<; rfl:~S11,<,,~ !Jt1 i; hali'~ ~31lf t;zf...T k ~ir3ll,nte~:a,l€, F,I) 1t1r:1~')Ei~9t} 't+)1t;`N Jt,L>"~<zr.~t1 I'.!f l~5'E;,F3 1dS is.t;~,# (ks { 1 3 _ce,r klrijfJ7r!IfJF,.f i'.f~} k ~Q.4 t.~1 f, i { I ~ 1;C t. f L f:r!)'1E~Si~) c ski r' l b(Ic4#3{3f'.f nttf~~f? ftssif„Cfiti?t,r~;,E, tf;w U rl, f i ~:{2 cif td{~F; S :4ov f f~f' 7 e v _ ra;~,~n'Iq 11k r;o.t.ic~if'tlatxY) y, ttr, ?'llV t ff0', t.t.'4.Y~~.~...._.,_ lp?rV) 'I'f 1r1~,r..,Jf;I ,.try; lv t-tj"cj f1:.1poj4iJ 1111 iO'1n ,l trt.~rns,yJli;r~~yA srtT 'A~13 ~~R T -7 TT City of Denton, Texas Water and Sewer System Fund BALANCE SHEET September 30, 1977 and 1976 ASSETS 1977 1978 CURRENT ASSETS Operating Fund Miscellaneous accounts receivable $ 50807 $ 10,501 'g Due from restricted and other funds 1880433 220820 Prepaid expenses and deposits 41228 34033 176 4"66 360154 RESTRICTED ASSETS Revenue Bond Debt Service Fund (Note C) Cash , ~ „ ~-~~~9 105, 685 Time deposits e &1e~c644c(~ 'orestt t t ;i.)01 87,129 Due from grater and Sewer System Operating Fund 1630325 Revenue Bond Construction Fund z" Cash 578,189 780068 Time deposits and accrued i, interest 420540 88,907 Revenue Bond Reserve Fund (Note C) Cash 185,929 - Time deposits and accrued interest 330j659 480,018 3510151 819j707 UTILITY PLANT IN SERVICE (Note A) Land and land right$;` 223,896 2380217 Mater utility plant (less accumulated depreo'+ation of $3372 - 1977; $4,174,931 - 1976)0499$ 8,218,201 8,3790114 Sewer utility p~Ant (less accumulated ddepreciation.il $3,715,183 - 2977; 30498,308 - 2978) 20807,938 207630869 Water :rights '(180a accumulated depre- ciation of $120 031 - 1977; $116,029 9761 130,033 1350035 Construction in process 496 293 206j308 1 i ! IT95760350 11 722 -0M , INVESTMENT IN INTRAGOVERNMENTAL SERVICE: FUNDS - AT COST 108,975 2431786 $1303129951 $129822,060 The accompanying notcJ are an integral part of this statement, -A•16 f r LIABILITIES AND SYSTEM EQUITY 1977 1976 CURRE$T?L aBIY~TTtE3~'(payable frow Operating Fund) f Deficit position in pooled cash C (Note B) $ 727,021;] $ 816]947 Acccufs'tCS' pay'6ible t~ , 7,110,-.11.1 1 e,,;1 8, 703 1Abchiod payxrol,l, "and vacation pay ! ~,48raQ3; n ; ;123, lt2 ReVehtte bond6'-'0ayable within one '1 1 , rci [v r, , rt„q~Ar} 209,046 ,.192601 Due t" rbstritite'd~`~Td other funds 196 087 37.861 F -7; ISH;~TI C1 lf~f3 1'J.<: !1 f ,!?t'Cl ,''1~1iW hill; "11 `r,~1iJ' LIABILITIES PAYABLE (FROM RESTRICTRD r~~ C,acCc, ASON A,CR 1:AIQ6 H E UD 11 A11 121' 1106hlfe Bond` DBbt^ 4ervice Fund 0':MVenue bdf ft,-jial+able mithJri one U1 r'r.r ' ear 1480988 127.,19 . 01`Adolrued icit'83~0t 87Y87a~laj,,r'zu;61,k4 Yc0 ~.8on " Qd~ftruotijn FOnd tint , :,tYr~ rlalJts:: hnai t, k, r, 20;371 11j388 - Due to other Waor and Sewer :r. System Funds a oar, ncl.; 20 ~48~ti 22 t' a7 C, Joy sWvj(10 LONG-TERi1 DEBT (Note C) R.,ltide 1 d lix -exclusive jp1c,>nt ta. 6, JAM; I~~ithin one Year 6,2300000 500860000 >i ~(YUr c'AE•' Icy, ~ :d17,(1`)✓7T '1`l11 $Y$~CERU.ITX _ . Reserve for revenue bond contingencies 516,888 480,018 Contributions from municipal or other government units 2,781,412 2,647,422 Contributions in aid of construction 2,2$4,927 20188,984 Retained earnings (Accumulated deficit) 12 F,66) 17 769 ' 81:10308951 $12,1322,060 1ti"fL`:.1..1f.,I rf111r 1o 1'rP,(j vr; f.Ofi; ~ ~f(~f♦i~riif~vw ~ 1-17 Cfty of Denton, Texas Water and Sewer System Fund STATEMENT OF OPERATIONS Yearn ended September 30, 1977 and 1979 Income (Notes A and C) ifat8r e~ le6 Customex'h $1 814 .''`Intrago,iornaidntal 1.4?rr. $1;488406 Sewer service charges 8177.747, Otti'er ; 61361 891,$49 l,ri, ; ~ E4 U 0 Expenses Salaries and wages 849,331 8379831 Supplies Maintenance 264,998 232,;319,1,. t,nr, 3 ,,;r341$,24V1;,,; 2490332 Administrative services sorvice0 1 1140321 x:;9,91100 r :,Iasuranee A V6' V') r~~,840 Bad dIbt and 6ndry exp1Jnsos lpit,'r''J A Q A. 08 1 x 'S65'~v+~ hail; `CY;~f.:r'4 .'t~Atl ,i t4J 'l3 iDY01 income before ` ~ 8010077 838,711 Depreciation (Note A) 848.301 53-1.1766 Operating income 284,7% 308,945 Interes' income. i'' 'r,3{' > J"{ .~~a tltr~ t-ri)y;fri fir ')1 i.<'!1,~') !1 !x.671.. a Q4 "raf,lp ,1.'` ';,o 11111,7734 t r f rt , Cif++~ ,'„5~,s'1 090,oCl; i! Bond interest and tees 318_; 638 0251630 P NET INCOME $ 13,948 $ 5000a,4 ; ~~j. t~i i)f'.a f; ~S~., 1)~1~ a.'.!r'1r(;,,;pllkfCl(,I') [i(l l.,ar raa aeF } 'tr:,tf7l, "~D Ir':Eft.+fritrr~ ter«'~'} :~ri[p,~~~,rrJttJll^') !f~t+»t i t 6 i'ItOf..11J1~1. f,'i rI (ra1~ ''C) (.?::ax1!ib lfri.{ur~'i~p.p~•y f i,1 3 E d - X~,1) tf~' F;J+ti to^i r;a btrr~i .-The'accompanying,.notes are an integral part of this statement. A48 POOR- A 4 r ~ ' i , p ~ 111r; TH I O PAGE LEFT BLAk" W" T&' Np{4Y 'I!f J f.Yd '2 ! i'"j N(ri tlel r t)J J U1,t i.'rStlts a ;'N'i'r'• }ilit; Vil, 1 10,1 'J tUs~ j Sll roll f fl Y!I'1ti ,4Ci i7f~~,1 a1; !31it1t.lt;e1 •J;JJf'~:i.)!i}.:. F3~if:~ '~fl :t'ffi/~ .{1;I,{~il(I,~ !(~r r1'lli }.,,~asjrJlf 4fl.f'JfSl;ljl~'I(i'1'J}9 /1iJ'i' . i City of Denton, Texas Water and Sewer System Fund STATEMENT OF CHANCES IN SYSTEM EgUITy Years ended September 30, 1977 and 1976 Reserve for revenue bond contingencies Balance at beginning of year $480,018 $4459686 Addi,t ions Transfers from Operating Fund 380870 34,332 Contributions by developers and others for,wa er an4.$gwer,t,~t; system 11 p0i1~ffiekts' Contributions by customer!; for water and sewer taps and extereions Federal grant receipts Net Income ` Deductions Traboter to General Fund - return on not investment (Note D) Transfer'. to reserve for revenue bond contingencies Balance at end of year $516,588 $4800018 The accompanying notes are an integral part of this statement. 'A ,~o 77.7 TI 1.k Contributions Retained earnings Edun C pa an otheF! (Accumulated overn l~ i In aid of construction deficit) 11 ,r e:rt~~f7T'.''.:34 c> ntt~'t $2y64'710422 '1$2 j647, j422 $,211859984 $1,799,469 $ 171 758 j.$208,075 ;Jfr f i{"rt71:" ;,~fY,1'1 ~aj~•'f't 7qf! r,,y'ir.?EJ r J kgas'. i rK. f f 7C t~'t.t, ~ i firm°i'a'C!'fi{ ~qf3Jnf.(Y2:~ ;+ihi;j'3le'~` - 9$.~~~~.•f„,rlrr~lrr~l~r8.$r~~'k rnc~2 J~,c; k;'AJ!icr7 - i ~:?,IQ3kf)90 I:rC'{!. i.401 3&,'i,sbc150o054 fno~z2 ~slcls~v~rca ~tJi.C,ic~r::k5 Ur~r, UUO, OUu ,:tla:o!~ tsut,r~•,r:s•z 1t>: s:,snr,Etr3>I I~'C 1st 3rrnrsit'~°~nx 'iv J~sorav.Fr$08,038 36 570 34 332 ! z; tr;r,~ its tAy0•,v lc s ncs k3s:at qqA 4 $3 751 412 $4',647,422 $2,2841827f :$~1,8,934.ic~(12p868}' ~.$bL,7,759 V ~~~~rrr~y ~WIrIW~ "Zoo, M1401-Nrrp! to nu2Jaufsr,3i Itslsic>I Iatsff3 ffs7 ~ncrU (0 "elatr1;•sT kSf'O,e~4~ Jwmrr)?:fsvrsj Jun ❑ ) IQ 0zrg.j:)n.t Jj-q M0,11 t41Jf;Yr;rk <t,,iJiliclsil t,,rL ~EcU, F.p{~ ~JnP~r hhJni•tJs~~~.f ~~E (.~~/IdtiJ:~kfi) :a;.~A:•iSIJNI (SI•.'1,Oi~f) ~;£;1,lEE ,.IA'fI~{A:l ,3fJ~f310W . IF; (J k7 r3Vb) !f?Jir~f'i Sj11~7{'stsl fiU41~) (nC! tFA~'r_c ~._7 's t:tr~ 3c, afsiusri:i9ci ?0 t,cl<r Jf. (J k;st't ifs) [rJ~({r, }ni~EsoW z.. City of Denton, Texas Mater and Sewer System Fund STATEMENT OF CHANOES IN FINANCIAL POSITION Years ended September 30, 1977 and 1978 f ,---17 1978. 1koces of" 4'eking. capital _ from operations ` "r~)' et 'In, dillb "~~~94~i1 wya Charge not requiring working $ 5.0;064 capital Depreciation 51 53lj 7 Working capital provided - from opera`•tions 5520248 581,820 Contributions frdtd', 6uBtomerd:x9hd't' develo ers (z 'Feder a f E 88, 973 M386086 g:'ant re_reipte. _103,990, (Net did6gsa in < Vstrtcted aedbt'g, and liabilities payable frow restricted assets 321,732 Issuance of revenue bonds 5000000 UP Ayment of investment in motor Pool Fund 114.791 T' Appi ca ions oP working ca.pitai ,rlfddib"i~6Kie4~~q~rLtflit „der c i F~laKt iKt ,t~;~.,s~, SSt• ~'!%1,"t ~'!tt5t' S~ 500 227 96 long-term debt TTinsf6t to General Fund return "3E "'32 ' oh net 14vpAtment 2090038 Net increase in restricted assets and liabilities payable from restricted assets 403 838 - 8 0 5 INCREASE (DECREASE) IN ' WORKING CAPITAL 131,135 (1400048) Working capital (deficit) at beginning of year (11143 110) ) 0 3 064) Working capital (deficit) at end of year> $(IjO11,975) $(1;143,110) Ci.ty,'ot ,Dention t ';Texas ; water and:-Power "Sys to% Fund„ SWEMENT ,O0~q]KAK¢8$; IN(1Y1,NANC1M P.0317`1011,Ft(CONTINUED) Years @z}dgdeptea~ber,; 30, x,87 a~tc~ r 1978 1977 1976 Changes in comronents of working oapital Increase (decrease) in current assets c s.! k. 9 Accounts 1receivable, $ (4,6004- , •;8,925 Dud from restricted and r, Other, funds 143,813, .,.;5,126 Prep a 14,expeaseso ) , r; .1~.1~9~3 t. r 1Q 83) 4 boa 140:3 Uu# , t># (iO~1, ~i-#:, (Increase),~decrease tp6current 1 k; t r~ S Irv Cgt ! , .+7 ,1 r' g,lliabilitAgs 000.%' ',W0 f i' r, } s #t Defiptt pgsition in pooled ! ,.3ivJ tt, S caeh6iNgte B) 188#926 'c',i G10i123) Fr'1111 AccogggappayableC)ofj Sf roill.~d88nr~; rrtlJ~i9$1, c"~ .rc ;;Accr116i1kg6~ `411 gno,-ypftion pay (20,058) (7,046) Revenue bonds payable within $13,0r3a• one year t, (16;44!) c q;-0, jP j'43o fil to'c Due tobether funder) et't 158 190) ft..t861) # t:#c~ E t".; %u ~u ( Of)U 4f 1s 1 -10 m m0) J3J '40 1wwF' U8 , W JORKJXO CAPLTAao, Cf t3ir 1 `t 46) Oi'(E,#', !:F38 t# 00 i"i fall N-0 000 Cis; r r.ikw 18- t'•F;C , i)n , 5 lJi: C ,1 T S (Ji~tti OT ...w„•.."_..,,... It,it,•rr>r.;h'~ ~i) i':Jr'~,n3`-srr~f:h Wq nE P'ooiJrkcf,E•rl:roi (i)i1#i7 t'P.or) wDi.J•_>u"1J?'11w,1 to {t1{t)A 1F~)),..•_J 1f11r;'`Jl~; 11, ,•(t 4e I The accompanying notes are an integral part of this statement. A-3! City"Sf ~DOAt'ofI 'aTAXdd Wite~ and BA~rer s stes ftlid i (0 a vY' I I~A~'$s[14f~'t' { 1OFCIU66ftft "Attu VACr fjAi; } itkyll;v8 Er ► Year ~~i"ded 8apteidbe~`130, t' 1t977 , r°~ Revised Actual budkot Aatnal prior WATER ,r r I f:, art^'4'f:r, rf i•.f,~ > r:s 1tk.rt1 Customer sales - 950,000,,+$-!131z982( :$t: 820 035 Customer sales - terry t , eommerat s 18 ; <=1.1 740000 s sapeHa~.i-es ~ "t x 1 0 834,882 f0 62't•043 r: Tatra 35,000 - ,{;47,604(v)- 1 310561 go-verfiken' fi:f 350000 58 617 Tapping teen - water r 38,023 Sale of scrap material I firrr309500 . 48~.~88 ran34,348 Miscellaneous incom6. 70000 Interest b 'fooq at 51872lrclr.tl74s598 rtal t i (r;";$atel.) for Ma9el 67 8t1tI 68 848 9,000 (a !);r16 ~089rc, 70787 I 8R18l in confitkubtion f ~ r'•t(na7~; rr r~ I : (r) b,tj (4t1,vS) 1t"-'~ SEWER nldJ tw tr[cttYt.q cbaad £~unryY3fT U0846 i~15a~r1+) •xcr~-wta ~rnbB I.? . ; 483,001)"f" A '14989036 011(I 350)940 commercial 351, `0 0 354 556 273 883 (ac a g teed - sews 1111 TAU) i2~~~~'~ 1 11 i We}e~iteio>b~t 17,bb jaa7 0X4 X9.0 ,8$6 Iptr$99verAM04ta1, 822 10, 649 Sewer lees - :other pities 111000 90882 80070 Sewer fees - industrial water 000 M451 84 03 ' - TWW $207050500 216719758 2,390,734 Adjustments to commercial basis Contributions in aid of construction (98,973) (72,866 Interest revenue. 67 804) 88 848 INCOME $2,5040981 $2,255,220 art+;;r,)irtt t(IJ X(, P,rr,y Ira•tgoJitt tit u-rr: LAt)jurs ;rkyirru{mr~13!jr~ crSt` A454 L1 Jul I (I A 'X1 13 i`,7l.S't ,C ,,Ot1Ae,AtoiAjj T0X4kv, Plater and Sewer System Fund T, 1 11U5's'i'If', ''t(1 of F l' i t" k C, T U k5 i :t S1 J's Cf / i`d `3 t'.+i':e, 'u'Y T. 5 S SWAT 'ENCUUBMNCE'S ANDTRANS? abS 'iSE?!" .(~F: 13;3;^;, lr1!~? ~>•,:.:,~7~s .tf•~'f Year ended September 300 1977 Expenditures Expenditures, and "p r 3 ra enC "!prancee encumbrances ! 1 , yisuS} r , r appropriate oits " diid" tyansiers prior-yet $a fries and wago' c $ '180,192, r , $ 158,048 15 ~Q28 , , r +i t rt:, t}R9 i. to 93,651 ea ~ , , 1 , ,,•.;:Y1z..~P3 I Ra- tlenance 18197Q ; , t 180416 1r$,Q2$ ap,roduction power 1$2,10,4,+,f 204,358 i:'Se riCes J,r V tiS 52,41$. F~ 51,94911.1 lrlo (r:4. s 5 r:.L~pital outlays bl( J' _ 8028A) F 11,337 002 7, 100, 7 1210 " >In0tirikrice ,£:i,'';c,t'"~ 2 `fir. --4150631 t wasA,DISTRIRUTION 2:it1i1"1'IUr~'sT~T ; i!C,t7 AND 94TERINc1 t,r11 r l~xfe~: 8alarios and 194 !S3 203,099 , 'tr~10,478 8 Co *.A oe I,a , t, , 2. Do ~ r, X71 742 r r 12 , 04 2 Supplies t a~ 1210?A,S .t leLt; MaSup metrance r 120 i 4 40 1200098 'jhrirwj )1%;880 U3 8 220472 ~y.,i.1,0b206. ' c:% tiS0.I`ndry ViCeB ~isE#l8 `2 54409. `0 tiftf, ~;-rE1t111~ 25 (F: Su r.•s (3Bi Insurance outlltp 83,e4L9.18 "'73t 187 '1 n110-a t ri r;f~ff 183 ,t, insuran nce t t t SEWAGE TREATMENT AND DISPOSAL 8";E "J71ttY;3(1X3 Salaries and z3 t i iJ K r~r, r1' ` wagges 189,491 177,851ji ir,l,r~aa¢~738 Supplies 30,2¢5 $.rfi~l~ etrrl.nJsA 3!,801 3;t01hintenance tc:.t 39#052,a,aej 440U.1.xgr•r11 37,722 production power 124,143 13,8A91) t;U `'`rrr,T':;T 102j373 4,221- +1 OXA, ~ )v rr i ,4eyices .w 'Capital outlay 88005 80390,rs1~ J-.1rrc1?i~, Insurance 2,048 2 4 cc r,t,:T,u`I I ~ 191 zk"I Pi f~ {'1bflwp f~i:~Et ~ftI,QF`3 000g<< >r.ra~i~ ~ 1111t,r,1i 14 0 11, K' F City of Denton, Texas Wati4r' an'd' 86*6r` Sya tea Rind STATEMENT; OF APPROPRI AI'IppNS AND EXPENDITURES, St~f.BttANb~'8' ANb '~SA~ISP'SRS COtf'f'fNC1E Year ended September 30, 1977 Expenditures, Expendi endures Revised encumbrances encumbrances akKgyiations -60 transfers prior ear_ C SEWAGE COLLECTION S ;Salaries and wages 182,540 $ 180,82,/ ''(''f ? , $ ' 2"b0;40' Nu dies' P € 13414' 12~T76 btaihtenance , ; ~ , 8i, 981 59,359 600933 r: ~'8ervices 23,247~` 17 8tlridi+y t,, = tss 1,000 0891 141 201 a .:r~.,x rtn 1.I is<)'l96 idipi'ta1 outlay" ',try 53,618' 27`25 " Ihs~itrance Ae, ,l ri' )rrt 1' 2 429 `338;i;`' ~62 ° 471405 2320 f7 z, PRO RATA. SHARE OF. UTILITY ADOINISTRA- TION EXPENDITURES 01r1j I tlt'i "ill, (DIVA Salaries and bite°rJrrf~E•, PV] OSt~agoa 40j042 &nb11@s V) S 4 t 984 r t y368 t 0 C405iienaance3f~t) [ tOt,1 t t".$ervieQ 81$ 857 fixn lr10 t1,74599 48,017 ;fl Sundry 46,858 iv'3iy285 r r Xt1hur&1108 i "i 4 %%Olr.itr? 91 spool outl'ttYTi`' 8Q +4 747 =sjf) Jnij;,,n1 12 5 vb NONDEPARTMENTAL EXPENDITURES JA?,(, Ic'slo Transfers to tnb,tf; AdninistfttlV@ firl i t't i}r C1~{il(: s@rvi derif±c 155 11 ~ 152,323 t}130 023 t'3t S! [Return dfift3e't'j ,651111 nYestoihhV' ~o°; rug t =.,rtbrr'ci 1 04hterest and(?1;tf; jl20Ay038 7uo t +sEs; f 'exedPmptior 'p duiroman t la'tt~d;,ir~:.-- sundry 638,458 6380456 Sad debt dxpenoe 259000 40 206 $2,588,527 2t817,725 2,408,740 =A-S6 ' I' / , Clay of gent9n, r~xas, ;Water, and, $e'wer Sys erqnd, VATEWENT OF APPp $ AT QN AND EXPENDITURES, ENCUMBRANCES AND R~NSP ks (CONTINUED) Year ended'$eptemi er'30, 1977 Expenditures E;:. onditures, and Revised encumbrances encumb~rar~ceQ appropriations and transfer priox,ye~r ADJUSTM1ENTS 7'0 cp*mx crAL BASIS Encumbrance.q prior yea,,:, 2,Qtl`. Debt service requiremep~p Capitalized.,, t t r, expenditures- Transfer to trt>' .`t;i.~e' °reurn 0nVnet`'~, # tr,tt>u4 E s;1. a,a investment - (208,034) Enc"Oranc@s current year (21860) (33,167) Vacation pay accrual 18,678 8, 9 r C`2XPEA [Oi.f'iit;r<° $1,703,9 4 ~11 ( I t ~~ir t hh J is !in' c k: i ( ( , :d I .~'.[f~ I;f ('1 i:fi '1'll i°,3! s.sll ;jfv'4F7i;((>r5( Q!i'., ALS1 'k Y Ofy~ of, `)Mfgh Ir es Iut!~ :,gbvbktAi6ht3 l° `5er,Vi'ce``FV i's ~~,,1`; I, Y. ``j1✓r'l.i)~j Or p,ppJ {~i0 lf~4vC.,, t fi.. r eptembex 30, 1977 Total Working Motor ASSETS (Memo) Capital Pool 'Jt4dL # ih poSYe$'cestt (Note B) $ 598,036 $ Time deposits and 1.598 j 03 3 1. 61,;; accrued interest 260821 r.l tt r:~ ,AgcgRnts,. receiya le„ 222 222~t 11,~rrj tnv6ntories (No d) 476p768 4761768""' 3' ` ft`l' ~m othe • r j 6,, { 97t419 970 e insur .nc I 553 553', , z t f..! , ij!s►: ~ito ' f: P '_r-rro 1 f ags-r!. Total current 'V) ,c assets I,199 " 819 574. bdli (1'-1')024j857 00, C0 Doq ! - r Tcrr PO ,:'.(r)tO-x d t grr~~~.i;cr.rn~. ~~1l'' x • lau~t `~:6hhLuiate`~' t.tyS t 2.:88,?O1 51,~~';+tlx„' 317,588 deprecsiQtion . . .a... 305 685) (1 (10,053) ) _()28It 2883201 g032 005 `He $ 2, 262, 855, . $607,02.2 $ I, 655, 813 The accompanying notes are an integral part ot;this statement, A=SR I, I -`r Ivy W, r .,t r~ ~x 41 j. .a 40 'j LIABILITIES,IiINOSTED CAPITAL AND?TRETAINED ":Total Working Motor EARNINGS (Memo) Capi~tal~ Pool 777 7 'Y CURRENT LIABILITIES Deficit pohiti6kf in pooled c103h ($qt'e B) '$,(',.,2821,806 $282, 806 Accsounts OAyhbl'ebt A p ..r r~ ial a~ r( ~ 3(t; 1T'~iii', I ti L~iri `.1 r•r; J„l.Y accrued &'to'll e,nd ycatio a t,' _99,815 99,615 ilue, "tb" otht& farads.. "r r 218 - 218 Total current t;YI, ;rt1 ~rl~tr(10 AM') ties 382,839 382,621J'tr i1,)1-td')218 INVESTED CAPITAL''( !triv)altjLV Investmenti}+tf <<Eleotria)"Cr(4 rf-JIvIVIVA System 1) Of,, i 1800747 ;1801;-747 " wplu 1100. ® (b t@ `)f(J/})tOfi1JRY*'3 rt (~flCl $ o~ t t',`(5 1080 975 -108,975 - I'Oontributed assets (General and Specia} ')nt(Yn! aztxt t-):,;Ci Revenue! i~4t~d'~ C 974,878 J.z~c,I XR974 878 f),11ODil 11)[00 RETAINED FJARMa ; f v t c: natrr~ t. zu!> ~irh i C a:) kR, (ACCUMULATED DEFICIT)` ` 6151196 `A)1(6~' t3g1)I rk+ rt'BgQi :f $ 1 j'6$P 1 3 CSb . s. ~'.t.' A~, 262, 835 $6070022 s. _ _.....w . .r' •~(i)Rt!, '[j e.l1~1 ~(lb t',d''4~ I I'S "r~.~•'.I~It~ ~Efi !fl Si k,taJV!'1 bI11~,S;filit((~0~+:;)R Uli'it A-S4 77 F rrm f i City of Denton, Texaec Intragovernmental Service Funds STATEMENTS OF ;OPERAT.101VS Year ended September 30, 1977 Total Workingp vv , - i ] t .?i~.. f f Er Memo` O RQ tor,. . _ Cap t a l _4_001"'i Chargee't'b other funds $1,5280952 $10270,297 $238,655 Less cost of material Beginning inventory 4670298 11t 467,-,298,-; Pur:'hases, '!w. ' ";",1 046 ~3011„ 1, Q 6 01 51 Lees ending inventory 47617681?cr.r: del I 36 An ~.A ~ ~ E~l l 1233 0 6 001 Operating expenses 8 lalaries and ;A(agets, ; s F r 182, 776 19 r z !I92, ?,''76 Su lies 6j717 6o717 Maintenance 100425 1Q,0425 t Services 0,356 1 rr:,,2P~3-60r:,r r,r,::E Tnsance arlc.'totihe v5: ,48I 4~3G0 4,12A9 nr~ru~ Depreciati~~n (Note' A) 2g~r~; ° v 1~~ 85 n~,r2t Ivc54 01 F:iPt8+)I , E,tt Operating income es{-,r, b~9a~,i•rr;o~ mtp1 i (loss). h ~,~rs (b 603 ryi ~ ,nt~ t~ t:3~r ~7 pmr r, Other income Y Miscellaneous income 5$714 ,Qa ':9n s& t►Y7 ,~;1a:'~ !i'~ 1'nI`;3}' kez,or,~brA de ,off _,j? 9fi ('~t=~~(•~'~'r <1~31~'.iUaF;7"~7r.) equipment 97 t'llP,tArPPt $ SSO,~'q ,0.673 - 8.673 ....,,_.;P NET INCOME- $,,•.."81881 $ 111 $ 80770 i The accompanying notes are an integral part of this statement, 1 A60 :'7 7 City. of Aentony Texas'.'; Intragovernmentekl' Servicer Funds STATEMENTS'Or CN¢NGE8..IN tIXVVSTED CAPITAL AND RE'TAINEDiEARNINGS Year ended,September 30, 1977 CHANGES IN !NVESTED CAPITAL Total Working Motor (Memo) Capital Pool t Invested" capital at October 1, 1976 $115V20008 $2890722 $1,232,286 Additional investment by Ge'nery,VFund 139377 Jo 1J, ~r,t~}r.{,aq z~sr+.JCs Repayment of Investodent to ElecvtV, Fund 124,549 124,849 Water and Sewer Fund 134;791 - 134 791 Working Capital Fund 11,445 113 73 Invested capital at Sopte;~ber 30, 1077 $1,2640800 $289,722 $ 9740878 CHANGES IN RETAINED EARNINGS Total Working Motor Memo _Caapital Pool Retained earnings (aceu."lated detio'~t) at October 1, 1976 $ 608,815 $(65,432) $ 6710947 Net income _ 84881 111 8„770 Retained earnings (accumulated deficit) at .September 30, 1977 $ 615096 $(65p321) $ 680,717 ThsI'adob6panq'ih~ 'hotbW Are;odnj stn'tsgralt~Otrt'fot it1ii1C(dt1kt0Went} k61 -77 CityZ,df Oe'ntoa'j Texas i- Tfust, and: Agency', Fund', ,lt fi r,~ k ;,f r ~MO .,,PAIROLL t2t t "BALARCE6SH91T;;>; ;'4:~ Sent'e~nbe~~30,.,1977;: ~ ~ ~,-,•r ASSETS J Cue_h_ i'S' LIABILITIES FICA' likes payable v i I t',r $149j841 . Other payables 32,045 v ~ S'i C1 .fi if iJ,•lJ r'rr fCf i ~~n`1 ,'S"7,Fi'l~;~?S( ItY01, ft'1' tE'( f~nn`4 r~' ~rEt; 's rr t''1C~1~rt~t,,, 't ~.i r(a . (~~{C!~.• { \17C f ifJt rrximr-) :cre+,', K;,?Y(v>1d,{ ti;31!IA"f`ut.€f ''✓.f ~:it,f~'Aif;) s0joff, A,ic'ik f.tjiillflt,+s ~/tlfllt:)~33i , G awl E1fif'.C +I :~~1+: 1, (s 1' is C I 1 F:~i ft 111`3 r; J t)i+111 f: I~Sfi VI\1,Clttrj iIF; t'i3 )X, (,fir'L`~e.if: UC1:)XdliHlU;o~if:) )C i;fd OE T,hw.1h?co0p.any;lne AotOA;;Pr*Ap, tTktOffrdls,pikrtf+A1' e,ti1iplip. ilxl~llpR4j.1. A-62 F City of Denton; Texas r. STATIMEN , OF. UENERAL: DEBT, September.30,,>>19M and, 1976 1977 1976 Amounts available and to be provided for retirement of general debt Available 3n'General Debt Service , $ 167,517 $ 280,:438 Future requirements 11856,483 9 3,.04;0@2 $12 024 , ,OOQ $9,88b,,00 ~u it ;1 r : 0 i General debt r GenerAX).PbligatXon bonds 'ands , t Kwarrants payable $121024,000 $9,885,000 STATEKENT OF CHANGES IN FUTURE REQ1,!!hRME'NTS.' t ,ax's A7.EC(C) ~fs'S!"ffjj17 ~e/Q ts~ C~V{o,~~.~tt G~t)k.l A./V 8li1apbe3 Ftt begiuning of yeatt.'Yov , f $ 9,304,5M,,$7;;.576,590 General obiigatioh bomle issued cdUping,ithe year,r tu, vc I ,r: 3,000,004.,,/;R.;;6¢.p,000 4aox~.A~t~ ~t`i,1Acr~:ua~)t ti ~mvurit< E ~ t w available in Genera Debt M.„.85~i"Cg 112,921 (162,028) Bonds and warrants retired during the year 581,000) (6100000) Balance at and of year $11,858,483 $9,304,562 Th''~eco`m'aaiq`i'gibte~ `~tj©''}ts Y~terar1`pat' `tff 'lrtiid"idC$t emer4C}:i" A+63, i d City Of Denton; Texas STATEMENT OF CHANGES IN OENERAL`YlUD ASSETS Septembers' 30, ' 1977 October 1, September 30, 1976 Additions 1977 GENERAL FIXED ASSETS Land $ 2 450 200 ~Wildihg 1,864943 $ .123 259 r $2b?3459 8tteets: , 110232o464 90, 839 Ili 855, 782 Equipment and other lr, 843, 103., 13 075; 567 Construction work in 12h`9, 007 649, 314 1,848, 321 process 835,621 , (1-r~16 8) 705 453 $17,682,l35A-$2j576;347,!l $20'l .258;,582 tr'eJlf INVESTMENT IN GENERAL FIXED ASSETS From pi`S0bd):j67-<s' 3t1 'I ~ ;iX~.€, ggeeneral obli ation h40" ti g $12, 847, 207 from current $2 167,10$149 t r =isetrchWe,l'~' , l'o , 74, 312 1`rom cO tributions 1► 7d7, 491,', 3c, 95,,274, .l; 802jl08 and special (lC~~) iiblvdhue~ l1'1b1i?P'. ;,I~fhs! fiC1# 1N'a1ldU _3 LL ? ~313 ' $17,682# 2351,n.$2f ;570; 3471;, $2r0, 258 t'lf88 ) I a~r5`.E ~ ~~.r''~'.1 ~S;'1 fi'':Pi~ ht ~jrtJ}, (10 ie}'' 1fEil .{1l,': Yr E,..~t^f f S ;'(Y r , 1 t: Th_Q,, accompanyIng note r,~re an,r~4 ,tear i,. rt , ~ !i1~},1 x: "5~ tirr A:(,, .a - City o'i 'Denton, Texas NOTES TO MIANCIAL STA`CEMLNTS September 30; 1917 and 1976 A - SUMMARY OF ACCOUNTING POLICIES The accounting policies' of the City of riehton conform to generally accepted ,accp 1nting principles applicable to govern- mental' the Poll wing is'a summir•i'of the significant poliriee consi'stently'atplied in the pregarAticn of'the accoda'paiiiying fin'ahb,iai stat6mehts. Bases' of ~AcbouUltin'g"' The acorual' basis"EOf''abcOU^L~idg" is follbwbd by'.all funds other than Wdg'bta'ry' funds 'Obv'6 ~a'1; "Sped iat Revenue and Debt Service FVftds}y~'1ivhi6 ut•iiftd` thh' modified ac'crual' basis of accounting, The ~na`ulnt#i?~hce thethba"6f1'A'ce6uh"tin`q id"Wi6d fo`r'all funds' f& tkv, -hbdi-d' , " kdbavi,t A`ir'9! Ne ding b ' thb 'Ci't'y'+k' budget] 'far' e 'tb'r`itiAlf'r"e ti'~1rg,'~ the~,~fifcumb Whdb' hietbbdxof accounting`YS not used in the Enterprise and Intragovernme+stal Service Funds ~ Inv fito 'idbL=. ^jr, I h-,, 0't .l,i c lc?e 1; Cdi O ,S'iG'''.L (t _ zpo biE iiy"f InVetftb~ibb t:b"Ii !-ftf,x tilb►ari?Y b'f slr~pli6h hdd 'fu61-a'hd, are' valuhd7`a~.lno.Vi~~~'a,~'e'fage bo~ft;<,~,~ "a,21',•1tt_ ~ {7t~:~. .J ~i':}L'jiJut'~fl~' fi': ~fft ~'i, 71L>.,r 'a Ji:., l~r f! i.. il5 k F?t •'r. r Included in accounts r6i;eivable in the Electric System Fund are -'atibbWtAP dUfb 461) 0A0e' 'Arfdf beWer'? i fer`Vicbs ° provided b'y' the wate~1P~h~ ~s'ew~~a'~;d~~ ~~a-ga`rbag~ ser"~+'ic~aR''prbVidedb ° th'9'~ tltilit Y'ebBivaltles s`tr9'tll''oal~tibd3 b 'fhb ° .%r. $16'b'teib '8ydtW`Vend- .'(faai li'teftb 4boc+ nt'txg sfid ' eb 1b'ado fprob dGF'e61.1 Eabh fift O 14thri s its ~,d*n r<tib"h of tho`: 06v9hubs •alfd` t1b'bsesx:ifo~+ftlibee` ~dL~GG;;tb . ' ' , . Revenues are recognized on the basis of monthly cycle billings to customers for services provided. As a'irooult of this byCl'p billing method, the City accrues unbilled service at the end of any' Yihoal 'Pk i'bd With' rbWpbbt to 4b~Vibel'pebv dtd but not billed at guch1'dit0VF,,' The amount 'b'f<unb lied- rece):vaVles auouht d t¢ ap iobkilaatViy,'$1,~67a 000' ethd'$888f0O0I-ati8epteiibor $0, 1D77 hd 198~i r~8q~e'dtiJel~r.t r, ur>r!; Fixed Assets Utility plant in service and equipment on the tntragovernmental Se4'Vieerl'~:Kds arb'recordeW at 'boat or market. valuh at date of '~dbh•tjibutiofi,b ; Depreoiation hoe been, provided ti+:oing the, straight- lir sl methodo,in *#nbunts, suffiaiont tb relatb =ttjoi lost of assets Woperatiohs oVer their{,estialatedluaeful.rlfv,a, r; A-65 K. 11 1 ' ?;d. X17 .YI,y 1r t.`~1 16i '.1 tr, CitY of ;Denton, Tq*,qs . NOTES TO FINA)jCjAL,.ST4TJEMENTS (CONTINUXD) September 30, 1977 and 1976 A - SUMMARY OF; ACCOUNTING FOL,IC198 ,(Continued) , Dur• hg the, year;; enOd Peptopber , ~0, the.. ne'z capkying value o.i. the , elgctric sy to utt i yr. ant,) n, eF v,i Gg was increased by $4,$5 ,4~8 o tie; appk, ed ep~acemenx less depreciation as determined by' independent consultink engineers. The appraisal increment is being, 09,r,tixed, 4t , an annual rate of $283,168 and is charged directly-to ''V1~3':gaZ.~, .e¢ ,ilicre~eet; i.PiYaluat),4i~y''rra>COmp.9ne t;9i 00, SyaxQm, ,>~quty,, eb,;.~~~ tion expense, r: The; rj'4,9T0,41g; 911 .apl?ra.• , pd .Y#tIpe.o 01 191$Ce~ia),o# 4opt,.~4~4a thp.~ a~$~g~.~.:fofr u9 99r. ,$f Q1 $~3;9.~1,9.i t ,YBr~ qu~,x.}',Qr; ;hp rtQ ? :ye~xpeP~ in, .con#,4#'41,~t 3?S_9,0,eral y, rtcppp, F.$, a.9~~VN9~~ Yrin,d*JVs.,Jf'i'!'ie: ~1i :1 It'!fp'r'1'lr 'I'1 _r rll tH,i, 'S`c!1'1 j:`-'ij:''~ ..11~~ 11 .'z` 1f •.1 :~F1 Prior to October 1, 1970, contributions to water and.,,laR9'.4rsvrri systems by developers had not been recorded as assets-bq-the- ~ Citya',tn TA%1 al yPtb141 4PP 10898, Rn rtt~r.1,QA1,`F-9t ,~s; ~Ai3vr1 t balanCQ sheet 40 net inc9me (depxt~q a~ p)rgi, ri at$M, n~,v Sewer System Vuhd is not known, Assets contridted subsequent ,to September 30, 1970 have been recorded and! a;s;~SRg>~epYer ciated.' _ blr16 rtj1~,.(% A) rrt ~,ldsvi 1a~,v ,.t,tuoaa )s, fit bohiltarri Gene a~i ,PP#'AhaQ-00.tArAi,;eFS>~`4~edrop *jCps.RdLWgQs)11 in t i-0 9 4i1J1D9gj*)C,;F,9ySa ~AkPA,,gAP4104 of Af lFlhdpl~ rti~ at ti4f70'V rp ,P+xl~8u.4~~V-044',AT OO Ao o.ta.0ed.; trrPof ~ n)ti thfb 900. ' ~#,~ied4 p P3~9~. 'oS~Aa P11 ASS-04-4.1,1r J103 91A pr SQR.tr ,~1~Ss!•9ri~► a3'9d r'.494rSte~rc~ ;8$94t'A~ :~1~4e~~ ~s1~4A1~,~ :1►~~::~ait:~ ~f~~~;,'rq value at the time received, Kq, l~preq t dpi h&i~, X►.ee. ~+;Py,4Y dRf~ on general fixed assets. ~~!;rl t ! 1 t~ f:)'~a y 1 II f 11oll 'to i, E--J..rf (,lf't sr C, ~:flA Lll,'",;7','r '~''rti +".lIJlr9';'!i1f p"Porlyla 7 4tie41,19 !i ali .1) )v()rr F F") • t -Io t)t1r~ milt Jr. a~.tvra b,,Jl1c111r1 v,+:rl.rriw'. v)V') off` t,att~r+m oltffld l the .~.itY~ a:eo0xdpr~'4+)+e3~9Qr•~~'4~1, prt~P9~'rkY~ t~►XQe i~.a.'xtl ~',9A~'~ •sin<,r,; ~fbic~hl. kl~,ash,Q4:xPps.iY40pjjfor;, p.1Li'pRe.L,,4# +AccouAtAhijX,typ tr: tarxae,"a~,x~,~'.9c9r~3a.1lQ.~instl~e.Rt1~iYri t9k~e~.•J~9~Q~vp~i~t.;iii►~,,>an;~;s; asset, but offsets these amounts' nt with a relatp~i, 3',g84+`,yp, fpr, r7 j uncollected taxes, Revenue Sharing Revenue frlrt )rrrr r~~~ w0riT oel3 rr< '1i1.)Arc{1opi F),91ti ra~tv't,ir u! tnrt[i; v.S1.1tiU It<) ~q~,ther~i~Yi .tar po~,icYa t4)res9rd: ,a 11+) PgYSWl~t~rrRr:otlt 9f~e, d11tt;>tie~ I J,>pont, rperiol;:within,'ohe ~yegr)40 ithe oxfiont) praeti<;a~tXp.,,•r pur,ilt~ ;1977, the .ending; datl4:.of: the antitlemoatN period :ovms,Ahangedr t 3. from June 30 toy Septembers 30►)t Con>sequehtly,•r`ths tine.lr:payment 'A•66 • City of, Denton;, Texas NOTES TO, FINANCIAL STATEMENTS' (CONTINUED) Septekbolr 30, 1977 and 1976 A - SUMMARY OF ACCOUNTING POLICIES (Continued) for the entitlement period ending September 30, 1977, Wfl,ch was received in October 1977, has been i accrued, resulting ;in five entitlement payments being recorded in1the'fiscalryear 1977, lit . , . t B - EQUITY OR,DEFI6IT•PO,SITIOD(=1,Ns'POOLEf)-CASH ;;i+ ..U:;i4A;rJ,l1: .i.~ tt":Jlt' ?1 V'.~~p [Jr~ '.YJ.°~! The operating cash of certain funds, as noted below, is pooled into one bank account not identified with any particular, fund e The accounting records for each fund roflect an equity 'or " (deffioit)i,pos2tion in, the.pooled,cash, ekt September ;30ras-,follows: (t1 lJS~t,n+c; r~ ",d il~'itl hrr,a ,h410 z:0fil n€ t>°J:f.le.ags,P, wl i:lttt,ltlrPf: FV~d .?±D'rrl':,r1K~J u.)!lSil'+1(!!t;(-''19.77 ;'IU.,tr1';'x,.1976 iJ: '!!;(,i lJ:✓i+t !l,] ~I'i. ' r~r ~•t E39 y.413u~ (i 114+i S:tl ir~IJ'J Gener8l'r xidv r tsal l,:,eu r , tt, 3,,i~ 11104 2ui Electric System Fund , 9ec.,4114PI Operating account (3)617043} (2,446,451) Systems Extension and tiotlgPigbco1q hr;A Ira' zsr, I(iprovement. Fund Mater,_i&nCSsvcBrr, 1Sy*.teq,!Fllndril fi-inom d_.i3t' to r_cE, jesi oill nO rrt;rOpena'tingrracpouut to Jrrrtor,ii; tir , brsu'i(7?,T Q31,) caii (0161g47. J1 ~Tfo1t+klti ~,4sApi.t,e11 Fl~gda ,yrs~'1:;,►r;m .f. ift c(283 806),q e*223i'A32::I Motor Pool Fond 598,036 804f18Jrq Criminal Justice Wring Fund (01548) 61 526 " Highway 86fety Cram` AlAd r aiiuo>:,A o~32A.oSt Human Services Project Fund (7 456)`__-_.~._ 3nJ 'to , Jrit,cia;as uV X~a s"! ,rotJ n rr r. t_JT'i:ar f rte IiJID aril ~aJSJ rsrri f a&u! .fart Jartor,Jt; r~jr ;t~r$'~ i6081J63,A$bob-330i878nI frctfC,nttq 10 Jne+m~nq ~,arfJ '1'0 Jrs~r;:,titJ Jar Itofrr(rr r~,r~!nixi:m }rlrh,',r,ati !S1'tQsy ~',f '.allt ~i11TU1'lr:fi'~UCJ i' Ilraf VIES 170 F;'J'11.1 O 7r, t3 C - LON04901 D88f1f)i rsl 'ta 10 J c~iJ;~n t rrt .jr; t ?rrat h , u ad l t r,i srl:, trr Unfit;vtt y~,num inrlt'Jf'3 rJr.. )011 ~t ~r,"ri1 'f t ct,nr,~! As of7'90t4Ab9r 30j't}1917r t'th'd (?i'iy!`ttY'~D~tiid~i'r ilieN ~'Herdf 'df~ll~ a~ tion seiIRTIiWnddland r`aaziF'af[tb°r6'y, tibr & di'M dt" 1910 4`000.` f31 These >iditiad}'V6tfign 'f Ja4s 916102 halij/t 'i roaf9~fi vii4oaf~te throes `f,10971 89 f A116~1.14o€ 6rft8)pc gisB C' d IN ~paga$181a4l1Wy a4 -IF annually &VraW(F7#dnNitf1r'i`t~6`8 8S`6rli~ ;,,6 iY`'n~' l' Uae,r:rr rsra JeA irl hnnllAialsm fir, 3,Glnl~u~nrl~:,as (A of 3111,fiv,is ta'ff,yty•,;jJqs As oflStlpffiaid r130pJ'1977'r t b'r'dity+~s do*~l~btfil'o~ eYV fitfQ-'if8f+ilCl bonds o0ffrdt8Rairigr`WrI$J1TJ948f 005 0TH6ov f airsil 6 pR!Ab18 Aflftusiiy througfi111989~a r'JIr1 6t:ds isr' a libl6'~I~ml'ftfin lti"fir V1 a~teArrr1~'!~(iry.. fns amoudWranIltill tf*wax d to~7.d s4~ aff6300`-'0 6v#!~i fib of the ordinance authorizing"the electric revenue bonds are as follows; A667 r S City of D6nton1,11T6xas NOTES Tn FINANCIAL' STATEMENTS (CONTINUED) September 30, 1977 and 1976 C - LONG-TERM DEBT (Continued) Rates The Gity wili,chtirge-and collect for`servi''ces readored by tho-systdm rates,suffidi6nt to pay: '(a) all operating, maintenance, depreciation, replacement and betterment expenses, and other costs deductible in determining "net revenues," and (b) to pay the interest on and principal of the bonds, and the R6s6rif6 .`fired rpaSr*dntd' r A9 ahoy t become due. No free service shall be allowed. Syeteim'Fdnd V?'s'a'd z' 'tlt< ! v1"t 1Jfr r lip., 'rc,ti,l e."akli rrevend$s received frord,the fooeratiold of the ayetent EiMIh±) i be deposited in this fund, s:;d shall first be expended to all",' pay #ora tions WrWmaintenance expenses. 'Any amounts remainin i d after establishment of the following fuddo fd rthe 4olldwiit'g order may be used for any'rlavfdI purpose. bn,~~ 9a a'~ 31,1J3,)JA (<~l,r"~t.S) {E:~rJ,CEu,>M} #nl,u',;,tt ;~r~ki~rt:~c~t~ Interest and Redemption br:r: f:c,t „ Tx3 r:;lr-lit.^{r V1' `t t j'. ! f?!V£f:5;"Jtl:']'Jl)'1C~,`rI On the last day of each month, th6jCVty,~4hall,depd'sitttin-:-this it(UP,fift the f1t6*1eA 6')Fund, an amount of:Uonopaio.tiJlesetr,than tK6Fftd1F4ta pif f Fof tfie next maturing IAtor`'edtJandrpridoipsl pa}llot,08 bf:0 Bea bof,l Iooh joJoY, 49 e e. (P;C~r ,J:,1leul- lrrt ts,ttrr'3 ReW.ve Account M 1)rtrl hello yjolf.i: ~nvrr,~ ~1t `"-Zcut' ~?rlr1l ;1;?~tf>~t eta'? ~ V'1'~c. !li:r!!1)it Ths "Ci-fy"lihall mainUia `iii the reserve 'account, of .the 1nt6rgAtCand~1RodftU0h Rind, an amount not less than the maximum annual rogdirement'for the payment of principal iAnd"1ntT3WT on any `bon'ds outstanding. The reserve account .1ha11 be used to pay tlAe principal of or inter j0(,op,A49;)r~>,1 J Fonds if there is not sufficient money availab a in the "gga1 qj;d j9r giA4h p4rposp f; -,X0qiQA ,fin i t e r@ ,frye(} ggPu~}~ ~ fsi9p droq#?r,<3~f, e1~~cr~;S~vQ4~rr~~r:~nrl~i t~ e~rtb~n~~l~tedf!~a~cxi 'JFS~?ri's' g x Q9 Agc-lip, ea. ig .A, f rPP@ f 9, Oz. th4(:~nS~ ~rlr.'xri i orttyyppnance. i~h i d! ene 190 '414 ~ s lk!! ;4,R,sge, f;-1tfj4 ;;aei;rrr, aggregate amount aacumu aan maintained in the v,f RruARfi ~t4+t a An jAypgoge tootjj6j%\ r9*egt~t 4 th Yt,n 1 - V %P4ytp 4 - VPF n9 ~+A i1%g144rrA0t esri@IR4~i f gn ,4 e 9 tto .b~(4ufi~s,fc r t stp.PIAM.44or..4t!P, miquag"I.4f (Aa to Q!~'tbop#,r:r ,s 4 rtc>~s;f a ! c; f3 ''1'iti V bJ:ocI ~111',1ISYFa.1 aI I'.>t))f !,l:!1 ,t!711'SC?ti:IJl~''111f'i111ti'1C, 91!J 1 i A~68 77 r 4 Y°, 01, C1 F: 0f :Denton,, Texas. , NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30,. 1977, and 1976 C - LONG-TERM DEBT (Continued) increased amount shall be accumulated by equal monthly deposits. over .a period,not to exceed :..live years ;and ono month iafter the ;date of•.the ,additional; bonds. , j Extension and Improvement Fund Un_der,•.t.he,9xiAti,ng•.bRUd ordiQ~noes,' ~t~e•1CitYrisrequll'e$, . ; of t.en rtiho above xequirecagnt9'..baYR t.4een me.t, t0 ~c1ePQB# iu this $un :>4n,4r ,bo.fore~ithq #dVW•,daY:,R ~.Ra.4h ~lQnth: PRS~Frp!.,. r,., equ4.1 ,tR,.ni4t,:les». thaq'r,l?~-I~2~~of the groe8, ~eVeRues Qtr:tbe ~ r system (,duringttkhe,-.pre.Feding ,moilth, be uAo.dr,only for.tI vt;(~l), p&yiagr;theIgoa~rof~R~t~T1$~9i1~ (4~Ar4ft~f °tci improvements to the system; (2) retiring) prior to mAturity,arr, revenue bonds outstanding; or (3) payment of maturing prin- cipal'and interest on bonds outstanding if monies in the other funds are nit sufficient. Monies in this account may beti,avestsediinr,eimilarF.obiigatiorAito those ~,QUItheIresgryq !3: y AadQ1111t tif) Y.1SSU:) '10r!Jo brrn jeyktiw) yv •7;iirfl[I~3,r(Ska.XQ 1>rrf; lo riafie W hitn ,b,twII"4b i:r: aEswi'+",Ia s ya;,•7' i, PP 0 r~Kt1'#3~i~, rid ~ipt~,~,oi,ea#1t#r~'~tnder. Jnrlc~rrr, rrtr '"r,~rrrr*~rra•t J^~r,•' •tan~ ir,irl , J%:o'roirrf bar,; ;`.d`Irglan.tts; a;?; ~s1~ r,l t,u7l,rr}:a•t ?rruc~t~e ~>,t~?3 If,LDEaaOY~c~iSc~#riYBAp ~hPrzC~~Y~~sbA~i,~;4L~~.®f~Y+,fiAaR~Q~I,.~A~Lt rrr, to pay into the Interest and (tpgelSPto~~F'upg,~gn#gpeig6t u and ike 6vement Fund the lull amounts required, amounts equivalent to such deficiencies shall be set apartfigp¢ pgAoi,,r~ into these funds from' the first available and unallocated re9egl~asn.Qt ~hot~~OllOw~tigJ iiQpl~~yeaJtc4x yeariu)•: ~wrr9yp-j #bobn}r:cc~ cod Jwz'Z .r.r 4!1? tirr3a bnrrl WIr?1 nd la~~IJ~t~u,tr scl 44 Add1ti0o4l8P0btmx YnA ,a. r~naj?x crrrrcrrsaJn.tsrt W-,c no3Ji.•1•xto tl.a of ebasi;An#vroitol ~Mj is Jn3mrfP11dGJP9 n9ilr, f,nul stri? ro, No additiooairr¢ebt2shal~rabe-iissuedubydt s:cgl9~trip7bYAxQ~ 1101 Fund, unless, among other things, all the above funds con- tain the amount o money required to ball depooltwtberet *)in3 and certain financial ratios relating"t'o'""d bt-660ft-1e"AYE -met. ,trl1 r2-t S C>t,?ah Ltrtri~I ~rtE;l rtin~rsr riar;+ fry r;~f, frRl ~rlt rrCf Adiseb forthrin-iNotq B:tabovd) thetCity 4sjnotodeproo1ted;;tUe.r transfers to the gxteugignta il~Iby o ,ameAtopLAdxi AtImpparAt9;r account but has commingled t a mon es in its operting cash pool which is used, in part, to pay general operatjagf y.r.r ;,~,.>y expensoso This practice is at variance with the electric revenue.%bon&ardAaagaoiwb1v& roquixexitblejxPuyitA.i) 94ypod)rr[' oriiyx t~rt dxtlsoe~Ae S~,C:i t#~$t e~9Sat~i.GAy4teR►;~AXr.p~,XN@ID~r; o;ri.thlli.r{.} re;,,Yenue~bonde;4 !,rfl' {trriinrJ:3lrr, ~t3ntxt ti.r (r0 JP,)•sjtr~? nrrf; ic.7 A;W i City 6f-;D6`nt.' Wj1 TSka'9" NOTES To FINANCIAL' sTATE<d -rs (ooN'Pmso) 3epteaber 301 1977 and' 1976 C - LONG-TERM DE9T (Continued) During Auguat land ~3eptembet of 19771, tWCity inadvertantly' ` failed to make the =required traddfers to the' Interest and Redemption Fund. This amount was subsequently paid in October. r= ~ ~ < < ~ ~ , As of - bopteihbdr`30,,' 1977;i'tho"City Thad *ater and waver 'revodu-61 serial ,bdAda~*piyablo'of $6,686j000; 1+Theadtbonds ar'o pa'yabldt annually =iti vaziying 'amdunts `:thrd%1#, 199Vfrd%, rdveneieb 1,61 tNe' wat60land fj*Wer syst6*v irfWost-•i8 04yabid semiadnuaiiyflw-- rateat°;rhtrginkk from ,3 0%l-16 6s 5% Vt"The 4ajor1prOVINione!of -the ordinahdd authorising ! the watoO Wand 4awetf "revenue bonds t arer .,c+ + a$tflSlltf~irsi) r~~ 'irli'r.,~ °d fl 1. 'rC)43`.r !i'fl~i(c; 31t3 C.P "?1lS;t^'}J:J'rCltRt I -t1t rq ?rr3'ru r,:•: 10 3t)~~~ s~r~ (f;l ;l~,itlfirll:9r'31.rr~ r&J od t'Lill evr+-( Rates (1) J°r x':`))rif ~fll~.lt,1r'"; .1 r1' <Eikod E7r1 tr.!.1'rti3af!! tll''!; G11~'. ".~Pl 1.'171U ,I 1, i?tlil fl! J-jot. )rt llil.t *vAiTtt .ne Osty~°aillr'dhirge-Ahd odIloot )ratde ,su9fioiontItb operating and xaintenanco,o*penses, and other casts doddotible in determining "not revenues," as defined and to a r ' produce each fiscal year net revenues in an autoont nl ~'1 lA> ftb_! _ , d:) t~ tilres.the amount required t_g pay the pprincipal of and interest on b~6d i f~ ntheYRaserbe l F Ad?pK$Ailutd~ K49the'`)bedo%8Fdae,11 NO t0466 hJV1cerrbh'd11Abbt'd111lwbd1 brie Ji1.r)'19i1I1 Ndl Wit.i ~Fn o1 aItrlromnr ,b'J7~urri)-% tr Uornr; I)Wt -wlJ 1)isiri .1 w:1ruov0111fliI ).~rrr, $PV~~tr~i g'Llhdtxsrtr 1~~ :,tJ rlirir. a~,2:s:r.+i:J}.3eb rl:~tr2, 03 lrralsvlu~:~, ' 31*,~77r!!St7{cr~u bn:) ~lciatir:vr turd rsd~ rollbnu3 ~~2~.)riJ r,iri) All revenues rece104 UoNgthe(Q#&tI6&A'0Vthe•)dt0tomgshAIIf)', be deposited in this fund, and s Gall Hrst be expended.to pay all operation and maintenance expenses, Any aate¢iISIPP4-10eg In this fund after establishment of the following funds is the folleM►'in~tbtaof:yeal b+~ lubod%lbrdnf~C iral~rfal ~pu#pogi t r,f)i c} .(0,31`.1 47VC'd1. jo I1 )tj li 11J 'i°A 1 4IfCirit.' i9-lr)o ,1)rIU-I Intereat`44d)NialingaFund o1 l•l,,itirptri v)isoia `to tioueir, urri 00 (e ? u 74rr.i.ri:I v•r ~Ir)iIr"f J1.1 ,rsrii)] nkc3 t)o 1., it; On the last day of each month, the City shill deposit in this fuftdt6r)hkouutl-ofomoney n6t')ledb than)thd pro'rrstar, part of~tho nekV1U1itUr4ng1iht0ebt'-Aud) ,f.1hclpalnpllySeftt3 eilt) cri i rts; ni; r:i rlr+r., „1ntjn'rig0 P01 rit 1;3~nom• c3rl., b!DIV0ratrfo?) rrr1 Jrrr.l ?n!!o•»r. Resprve lutdtrtlu(10 lurrrnx~I y) ; rs) 1rrrl rif !•t if, riw JuIx, ji-1.1"ll.tifi Ofi. rtfiw a3111,i"rr"t :Sr: i)i +sa)l:~i;rct r,1r17 1j4,(jQ(IY,- ThebOtty'3*hft1V1rlA-i11tAili1 in3thu~)Reser~e~F~ndr)otfi` xsobnb)notlloss thab'lth ~a(►i!?a b ayiSutl<1~rodui$~a~he~►tlfo#1the pr**nt of1Ptirioi0 pal hnd interost on all bonds outstanding, The Raxsorbe~lfundl% A40 T n, City of Denton, Texas, NOTES To FINANCIAL STAI;EMENTS (CONTINUED) September, 301, 1977 and, 1976 C - LOX0-TERM DEBT (Continued) shall be used to pay principal of or interest on the bonds due at.anyrtide *hen there is not sufficient money availab'se'in the IntereSt and Sinking Fund for such purpose. Monies in: the Reserve Fund may be1invested indirect obligatVins'of tile, United States goverment or other investments specified by the bond ordinance. Whenever additional bonds are ',saved, the aggregate amount to be accumulated and maintained in the Reserve Fund shall be increased~to`equal%the no* average annual requirement. Such increase shall be accumulated by equal monthly deposits over a period not to exceed five years. and one month after the date of the additional bonds, Deficiectcits, in Iftods Ig 4irk any month', the :City shall fail totpayiinto the Interest~ and:•SinkingtFund ,and~the Reserve+Fundrthe full amounts required, rawaats',equivdleAt,,to gU,oh(.defioioncios Shallbe :;set 1apArt ana ¢atdUnto ,said Ituadezfroxcthe.4 irlgt :avaiiabie sand.unalloosbQd 1 retrelnugc'of~itbp4olloviag-month, 4rAbohths, t To :the extent decessar yj.tithe t:Gity, shall oinerease.rith'o ~ rates 'and .charges ~ for , so:evtees obathelsystem to;.+make;',upr:auchideficiency,Ii t r. ~i, n (i 1 1 ✓°.t'. ray .nY r! b:~u.rsJ ct;r1 l,t,'3 .~:Ct..,t;lrf, .f.1vl'1 J t ~ul;~ eriJ =ti i. t,. 1. Additional Dbbt.k 0110 t ; --i %a) 1(jg7 Y ' ftf3'i J;ii;{ i`.i; y 1 ) :3f~C:, (1C,1> }<1{1"YJ tStlr itll Na~additsoaalctboddst:she►i1~3becin~.ed:•byt t.hAcW!►tdx`~►ddl:$dvror:.~,,,- Systb> Mrid unless am6nj# oy*:,r ~thiags; 1,11rc,tv,theaiat*Vo3 fdnds tcdntain tt;hd~ k~asgaunt t tpf : mtanpYr~ogtislred ktb`ytbe ~dif tdellos it E1cr 1 t)ftherein tlihdl,certaidbfinaneikVtittigd,rdlatingIto debtlcoveroge aroCm6ty 1( i?'1~Cl litiliv! :tldj:£SIti!`t' SL;1i1(fi !'3:t,1J;'!{3;1~i it11 1C1 .111U ;{ttt.''I.(; ;•'J11.t]'i:~^i',f 3s:17iJ;'„~,; i`%-ii,7 t,:i•t During )Augµst~ Rnd -Sbpteitbe'ruof.,1977, the City; inadyertaatiy 1.1Mailed td makerbthe requiredttran$for ~t0';the iIntexebtfekndr Sinking Fund. This amount was subsequsutlyopaid -intOotobert.1 ~,13U "A t 'i ?!.Jtif, .r31 +7j) titJ{ :1 J, (_!iJ ,,ji :1;., ) ! },~if'. (r-~ D - TRANSF'ER:OY)EJ;CESS_1REVENtJBB-440M THE :UTILITY-SYSTENJFUNDS ITO)THRc•OENERALkF'LtNDr).k'3 s,idt to 1j:wfti l.t: 1r,4 etl")', X46) t.:tit IlQ`):.3/".) C:?rtfa}1nrf~i~i3 IEts l:uri~~. 1~1:-fiJf:J~~E1 !'ij1:1 "rw41 }1 „i1:i~"J w 'iiliP,tJ;~l The'1Cityua~,~krt~r~tllotrbYtra~tslers~Afll.fexoess :revenues" Hof lihAr utilityf6litems to the-j0efteral,5 undi;ini:9n;amount aot7to.,~; 1zk'? exceed lsix.)percent Ofith@l'.tdet,,iavei%lhont'lt:in,the~utility ,t,:ts, systems. The City Attorney has defined and.laterpreted,tthe;,rt i A•71 y City of Dd'ntdri ' ,Teka's YOTES TO FINANCIAL STATEMENTS '(CONPINUSD) September 30r 1017 and 1976-` D - TRANSFER OF EXCESS REVENUES FROM("E ' uTILity SYMU' PUNOS TO THE GENERAL FUND (Continued) { meaning of"'!excess revenues" and "net investment," In 1976s the transfer from the water and-sewer:aybtoM was limited to four percant of I<net 'inves tmedti" and, inW1977 no transfer. • , ~ f, . - ~ , r was made COMMITMENTS AND CONTINGZNCIES2~ , 1 r Litigation r2 l3(I(,,t r . liZ.,1 f.t _1'! j U a,1 f. Wi i s d. s, The City is a party to a Power Sales Contract as more fully described under "A reement with Texas MuniOi sil.Powei*~Aasend~),~t (TMPA) below. The oun y orney or r moo gun P insltituted an 'acticinyion~belialf dl tthe vltate,of Texas}, which; 3 ? 06ng,othdrs.thingaj;)seepstto,'~deolarek;thd statutorpur."int tO rthidh #TWA *as tdrd''di4d undons til0t•ionlalt . td 9ppOint,i,redeivelr. t iong ns s!tnd4$tr► i, ad ce'Nnding o`i~ -carto iwofur0s AId(by; the boo~ COM coisipaesl City'jaridtpth'erleaitiedito:r1MPA~?rt.Th lAistt>~ia~;(Zdiurtijh&a'6fitered a summary judg ont girl FJfaVor*of; --TOkhand the r(jity-f jh6wover, j vthe case is on appeal in the Court of Civil Appeals, TMPA has issued approximately $50,000,000 of bonds to acquire 18nd; riinerel~ i- rights,and begin construction. Tho,City has guarAnteed`AjPP ,ratolyi 10';000:000'rOf,rthqdbbadseiosUedla,tlne:ths,,Iettenbith,eboaae is tot I" , the'MPA e 2 'iti~d r,4 biN$ ' sett ad~itniss~vbraktl7, tobTD~'slt, LL could FpQsbI. bl,ycddhtilhule Ethd;)rpt:ojeo ~ derc* ds lved~tthe Loilld organisratidnt~ cAltbtdativelyi be some presently indeterminable value of TUPA assets 'Whichsrr could be offset against liabilities arising out of;.the guarantee, Cong64uettly1lrneith0 thi gdtv6mt~~of.,the3litigatioh,j.%ho:,ult -t mate llability~stoxthAlCitq-jrPifisany,1)notiithe fditdefto be affected is , presenOly t dbtermlfiAble ~.,irr.a 1: Y., 3 ns,,C>n r iii" `.;:rttfi (!W Afl i2 In addition to the litigation described Above, the "ity is one T t) of id1tVInK*641(dofOiddaltts`_!Ah ~c pY'odtldt'-d bi'i3ty. c'as8,3ardiAidg from the death of an inw%te of the Cit s ail.J"Tho~► t 'eolte d9lmage9 claimed by the plaintiff fro~oall defendants exceed theiCityte,jinsurance;covbrago...~by"iapP City believes thatsitV hasJabnultbsrlot, do100ses avsil4blg31A4ty that tntkQ~JrcadA,nthd)(?it?~dvliabi11tyr!pill aoV4xgeed'.ite))x,1, insutindolcovarAg6,IM,; lowl.3-16 P.11 ,stsna3> v~t't s)ri3° moiPv A•72 City of•,Denton, Texaa NOTES TO ]FINANCIAL STATbMENTS (CONTINUED).' September 300- 1977 and 1576 E - COMMITMENTS AND CONTINGENCIES (Continued) Agreement with Texas Municipal Power Agency. During September-1978, the.-City;, along with the cities of ' , Bryan r!, (ireanvi 11.e. and. Grtrlaud', Texas_ (collectively referred:. to as The Pl,ttes)y~,ente,red :into' a rPowar Sales Contract with. the ,Texas Muntcipikt~Power: Agenoy,~(Agency),, a mllnicippl;. •i corporation and political subdivision of.Ythe State.of Texas.,; Under the terms of the agreement, the Agency, which was created through concurrent ordinances of 'Cho Cities; and which is governed by a Board of Directors consisting of eighty,-,meant rs.y, two, appoirAt.od•,.by,; the •gove,rriirig ,body, 01P ,-bitch city.,•1,ggrees to,~construct, og;:apg4lre,''elert3ric generator, cir+:,; plants ,to supply ;energy"anti power •to; The Cities,fpr-,,a period of not Iess,Ethan''35 years,.r;a:The [Oities rhaveagr.eed purchase,,aAL,their, futurd poW'er.,.hnd "onertyn regUlremblats in Jr', excess,co'frzthe„amount'JYtltlr.gonerat'8d ,,by:rthoiiS,systeidd Our`k f (;t)c)r, redtly; in.roxistenpei frog ;the.(AgenQy ati,or ce4410t$ndoct.to' coverti,~i,(a).,.tlhest~;ae~C>~.ting a4erra;~thelQyotero snd~(b);rthe'.i3,,, retirement of any debt incurred by ,t11e1 gganoy:•:r~: In t,he, Qvoat,, that revenues are i6sufficient to cover all costs and 'retire the, ...outst'aindingt,.dobtttr,eJt'ohl:.oftiTha tO#ies;t.hag iguaranta'ed. a °a 1,l'1 portion! ot,,.t,te.,,unpaid:debt,!badedp generally;-t.;upon; its .pro wllrc! rata n~tf~reisgf:r.ttte., o tergyi de;liveredito'conguuers' in'rthe,prior.r. ope'rating, yearr~v'A# sttoh t;iaeras gill) ot,ithe: dutstandingi.de.bt.-) of the4genpyr1s; retired, aan;d IKe rAge;1cy,J,,'s:%dU$0lvod ".each jr, City`;Wlll46:f entiitiled;tolpp; ttndivl'ded'rinteypst, ittrtha>-lrirj prop erty,4iased,tupon:fitsi pxo';_rata~, share 0f riotal-ipAyments:ruj,;j', attibrlrl cirwlaii t%JC1',: C'~!:r[ JI rs, ho'llwi o.P }'~~!`i,{r1 elrY(7~ ,;1',s' 11 Dgtd'nt 1971 f1rtherIgendy, idsued'approxieiateigl$60j000,000 of rI r b~rnd8'toibegn"construcbiottrof+a i-igr"the<rtoai+iaeled~'genAl+ati.ng plant'witich'lisC:expeate'd to'~•be'op'eratio'na1'~itti~~lA82t! 'Yttis ` i Anticipated -'that iVie',tote I -coo tif1oit(tHe A04U1FitiOn 6fN1h4 lignite-tand the ,pJ)h sical Jfdcil4tids wLll!lbd <its excess 'of'.- , $6040000.,000;~.-;%qr,s~, iG %5Qj 'Ire 11s,s;,r1 •tr':r ~ .n la9r,r rt:[ic: 31;,1,.,, :dal f,b_11f,tcrrl; ~~a~,.is:+'i3 1s ,sli, 1MW ;quci~rs rS+tlirr ,fllfra,CWUi3,[<' Accrued 1VadA ti'M',skltd,Sick I Lee.Ve f,>rr'-i'ra7 o6 17 i tirrnv t i3 i f'r t,rf! ,':''e`rr L rtsl~ sr:+;nl of J 21:q The City allows employees to accumulate unused t,.catiotl (up to forty days) and sick leave (without limits Vpon termina- tion, any accumulated vacation time will be paid'rtW tWY311 employee, Generally, sick leave is not paid upon termination but will be/ paid only updw illness; while,,.WtWdsploy! of th'd' City it 1'Vursumnt-46, FgBnax'a11y rmLdo''60'tdd acodttnE'idg liriftoiplea °i' ~qnl;f7_') V,oJ 44 t.?'! 'Z'jM .1 ri '.~X1 r`•k1 ~i l.`i lid (fir; 1irr Ce V'iil 1 .r3'.lC,i4)"51'k aA13 City of Denton; TBXas NOTES TO FINANCIAL STATEM&tTS (CONTINUED) September 301 1977 and 1978 E - COMMITMENTS AND CONTINGENCIES (Continued) amounts paid for vacation and sick pay are expensed when paid except, for enterprise and intragovernmental service fuhde whdre vacation pay 1si accrued.!" :The•'dollar, aazdUht !of Unused and lunaccrued wacatidh 'and,'sick':leave'at ~curront p`dy,rktos ! totaled "approximately $1250000 and'$950,000; respedtively, at September 30j 1977., t : { F - LANE ' STAR GAS' During'Bdptepber 1977];:,,the,City,rbiiterdd;Elato,a' new•gas,rsalod/r- i, contracti.with -Lone -Stair +Gas Company, (Lone'rStar)`0 ,The-<atgrce,' T menbir which 9providea~ fon' gas thro!jgh 19$1+;. ie 'dontingeht+ upon approva l (by T the :Texas Rai 1roA:d Commission'. ',The trcontra'ct~ ':i L, requires lthat ithe, City estimate.+its; future' use )and "proirides 1,:~ penalSiee if: a'otRa"' us~'ge,401,lless,rtt~pn'~75~ ut:the,reistlmate jj-I) The Citlr~rhas .'also.raercpd stoa:retroaotlivel)K payoth'e>inoreaae'd c'r price rWpe(difIs& in,'thw Moil &ntesfoto foe' 'ill=tgas,rYederiWed .rrx. subseque-dr` td Aprklr`1a14 1977.'tzi bo:3,1'tts;,v,i J &)h IIA 40 lravrr.~.t r This 'X .L) _"t irrtfl .;'lYr1~1 f Ifi '~'s`10J tl~ jIl^)ZUt~ ~U:3{IE X1:1; .t'1:!i1!3arrx :1t;' 1 Pursuant tc rove, ioris:'of1,the, fo1&(f oht~'adti,aV.0Lone i4ione~dsiaiBta'r+had ! ~laadio<,{~ q seeertedttake #or . P ~aCe ` `P defioi,dltoieshe,~iN~tra ' tp, y eXcess- oti $2,j200,,000 1for, calbdd45~'~~yeers°~297dr'reridrl978. ~'f~~iby~t>eii'eve8r,th$ap:deti~;o oienoiesit*lbe,:Advalid,:and had' 1lod duiV.to. diva:1payjdeint1r to made pursyant,Jtd the :aisdr(loti.Joft approhima`telyl"$30$1,1000, t r;') returndd:o-j,0onddrronVly twith, si'gningkthW inew,fgadr-salba;.lconjo'!q tract, Lone Star agreed to refund all payments made under tt.e~,ta o,or.faxy.rp Q.visiaaa',oxt.tthe,~ald gQntract,;Wai4*Ntho' 04ty, m . :i0atu'A ;hits agxe9 ,to re.i. pd to :cus.komer6,a port~9R +nf„therlr.u defiolo6cy provious ly lpasned tAroughj kThese,,re leases r arq ill: i q con tingeut,,upon,ap rova1 of,r.thernow lgas,:salee :con tract~w,s'If°it r, the contraot,ris i riot oLpprovedi tho.01tyscouldipe lassessed ;24 t) additional take or pay penalty for 1977 of approxima,toly,or.,,t.P $40000,0000 which along with the differences asserted for 1975 and 1976 Would be passed through 30 rCUP0400, 0400,46 t -)A paid to Lone btar. . , 11 f_1 [I' .)i ,r f,"1 f;', ~!.)F.f,11 'ltl i!!'}i':lfJ J.) .`,t1'7V il)gf e A, o I! 1, V)i;) f)l~'i` t;rr } ~loglj ~ I I11 J. F t;rr,rr,t t rr, ')vtu;:%,i ~{r1i •l,rtr; (a rr,ir r:''t~1 t13 a - PENSION PLANS i t; r;i C.i i v1 "re'.t J rrrr111: 11.v Jie~%I?~if!1! '3:.r„ '~rr~ ~ tr«t J rn!'~Efr1f!:'r'?? r10fL! ~}f..',9faR :,t .17f'!'1,~ h':F.~"r ~ritc,- 'i rr 1 The Otty,rpartioipates,in:n-pension pia,a spono*VQ4,by thew 1110 Taxu i Nuaiaip}L Aotirenout.:hye,tem i! t kTh4,sPAAn itfl ,s t4Q.4t.ri4%4-11 ~5 tory plan, covering substantially all City employees except firemen, r~l•74 v i City of Denton 'T'exas NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, !977 and 1976 - PENSION PLANS (Continued) The City's policy is to fund pension costs accrued. The actuarially computed value of vested benefits of the plan as of December 31, 1976s did not exceed assets of the fund. Total pension expense, which includes amortization of prior service costs over 20 years, for the year ended September 30 was as folt.ows t 1977 1976 OQneral Fund ~1Q 000 $ 84 000 Electric Fund,.t,i~+';fillr;"1'+`~b;ti.itl 4$'00 33;000 Water and Sewer Fund 28,000 14,004 Working` Capital Fund 71000 82000 $1800000 $1380000 j The f irelson are coVored,, Mdse.' the Ytremon's Relief and Retire- sent , Vlihof the City,. e plan is a contilbutgry plan with the City~i portion total s~ig approii'mately 08000 aad $65,000 during 1077 and 1978, II is the,0ity'n policy to fund pension costs accrued which include amortization of prior service costs over 30; years, The aotuarially computed value of rested bens- fits of the plan as of December 31, 1976 did not exceed the assets of the fund 1A 73 ,i .r {i{ f} £ ('VI" " GAGE LEFT BLANK INTENTIONALLY,., , ;t a ..a t~ Ci{I!?~~~ ~:l{{y%s' ~)ifft"i 1 ~'+a(eic. :r1IY'i '.l'f~f=~'t' CIl~(1r?, ('r{,'t(14`s !)7711": .r:S;wtf(! }ttli~`.{1:Yi M np.•nY..P~•T.]rt v.i w..a.. ...~)v~PT "J'Y 7, ,LSD P~tl `,i :5 k~!D ci~f3"J..!'t'f~~:{ f1f{~ ~ifi it ~_~9"[1i `J+~1 ';9"t Fl tif3tli ~r rjrf' l)tJ (1~c; f.~ I+.f3 Ati f'v?, ti't S"; V~ ~IA;.i'',Y.i~'1 f~t'O; 'd1Lt ,(1~3 f1 U.(.1 ',EUCI t'~`Lft,) ;Ffi,!' tf}frrr.;)%f hr!:il Cl.J ~1,3.~(.~.'~r i✓'V~I~1 ~~i~;f '?t '1 Vr {iF;l~ iG.t Il rz{ -t £:r e:'•/'f'li% (41, o £;63L 4. -f!?[Jf'r~l f~:).[f{i,' d>!ltt'L'.)`-.?fi :£C:h') •'sltl-')w.( i•,,}~.',i i f,.' .'iJiJ'i f (~'~f[Jl~ai Uii :J '-c +f f,!',G i~il „t '.11i `3t'*~• l`Lh"}'~' 1,~F. '..~"lt} .;,43 A '1b APPENDIX 8 CITY'S EONO C OACKGROUND VALUAT ION AND DEBT INFORMATION (As of Frbrvery I, 19711 1976 Full Taxable Value Estima"tcd $452,232,038 1977 Assessed Valuation (60% of Estimated F!dl Taxable Value) $271,339,;00. Total General Obligitiop Debt 5 I1,964,b00 417,488 Less: Interest and Sinking Fund NET DEBT 4.39% Ratio Total Debt to '1917 Assessed Valuation Ratio Net Debt to 1977 Assessed Valuation: ,.t , 4.23% 'I* gttlmatoo ro L1~~t14~1 47900 ni. i.. p'tr Ce'pita"Ai'delsed V~eluanon'-`~~~,G64.tfb Per Capita Total Debt,-7 $248.52 Per Capita Nett debt 523o, Area - 33.2 Square bfiaes f Noce 1: pursuant to authority petrgi~tc¢ by Section I-b, Article VIII of the State Const4ug9'ptyvhkh became effective January I, 1973, tha„Citytyas granted an exemption of,$6pW of assessed v4mit0a to property owners over 65 years of age, Th3 vstlue of properties exempted, $9;089,440, has been dedueted, from the assessed valuation as shown gbov4,..: r: i Note 2: The Legislature pursuant to a constitutional amendment and Article 7150h, YA7CS, mandates an additional properly tax exernptivn for disabled veterans or the surviving spouse or children of a deceased veteran who died whilem?OyPtdoy IP;tWi p foF p9 TACmii 1I;~P~ from taxation applies to either real or personal property with tht amount of assessed valuation exempt ranging from $1,500 to $3,000, dependent 1[ n t t, amount of disability of whether the exemption is applicable to survivin6 spouse or children. This FSl 6n ` by the City, thal,~he reduction in ssygo valuation has nod, yteded $391,880. ,r "1( 1144 ,A,II t,,'am'i nap=&V'i! Note 3: The above statement does not include S6,583,000 Water and Sews Systont Revenue Bonds, nor $16,902,000 T31W64 Revenue ~Ribiids;.ds these; Bondi Wr$tiiifbb% solely from thObt revenue of the respective system, IAW m and Sinklttj6d and' RescrlVd'Pdddlo the creditof tRitWafcr and Sewer SYstem, as of Februafy 1°,1918, amRuHtUldS280,820 and 5525;630; respectively. Intet"i Sinking Fund and Reserve Fund tcl the credit of th'~ Elbcfric System, a!?oT f~ebr`ti2ry 1, 1978, ami to 573'1,668 and $2,156,577, respectively', tip tit i}al~iF tU ~'lLl rA (mot. 1;7n It )il7tit, vye~l, ='.7'fill tl'7'+fl)7a1T1~' T3ri 7 7, 77, i TAX DATA (Year fa1IK sgttab" 30) AD VJWA" TAN RATE 1wereal Tolal Tax /WWII Geaent slatla0 Tax ('Areal %TeW Year Valralwas food r.FrM $ate ('011edlons 9Ardk4ia 1969.70 $ 71,866,297 $0.6501 $0.8499 $1.50 93,70% 97.62% 1970.71 76,608,456 .6333 .8667 1.50 95.78 99.42 1971.72 83,132,253 .8285 .8715 1.70 95.49 97.93 1912.73 95,155,723 .9044 .7956 1.70 95,65 97.42 1973.74 102,222,840 .8960 .8040 00 96.54 98.47 1974.75 112,158,726 .8978 .8022 IN 95.46 98.03 1975-70, 124,327,113 8174 .8826 1.70 95.05 97.86 1976.71 136,540.625 1.0938 .6862 1.78 95.23 99.43 1977.78 271,339,2290 .7728 .4672 1.24 In process of coltectiot *Increased Basis of Assessment from 40% to 60% of Adual. Taxes arc due October I and Dome delinquent after January 31. Split payments are permitted: first half by December 31; second half Y Iv;arch 3! 1 bisc9anf! any o allowed. Charges for penalty and interes; arp ipade as,fotloy, , 1 1 blertN Paa~q ~ I < laterest 1?eYNy February I !i% 2% August 1 315% Mateh I , ,I'I1 1 1 ' 59~ 'Votlthbb6l 4 %`:-'i l i•~ to 6%,, s "bc rii t - 1t55ti ttil3etl ~.49i9G 1~4dy t 1 f J rM s, tVavtahbe't 1 t S, 8%'.. . June l 21496 8% December) 59,% 3z.:8% July 1 3 % 9% January 1 F % 8% r, 1 ill i./ 1 s ,tint ► s i c 14A1a~ .,1 Y" J f'J i',s. I:r7i 4s, F1,r I fH 1, ,l , t ,%Wtmber30, Valved" Faade/t3Ad Valaalloaa ci,i •917}1 El1~1+:: G 7bU'/,' tl.1 t: )(~14 QQ1k111,? df :NJ 11 1(~J f~1p?y'//lyyUyy~~l fl'. VI~tr6:lq pJ tgra{ !F r'?) 'r'. 1 1 Ili ire- 11,91A,J frtU'kt f :11 ~t2 ~j(y~pq,297i rMlf'~~I/W~(V~:7~r aF'}f1 V./I~~~ t 'X ~-(fi.l)1y 7(Jli 14971;1 jai liozoJ rtl 076,608,436),j34 l,qo b1,93IM?, 1,+'9,3161 ll ;'IIN~ '..lt7_`i •'a'{ 1 ,r; A- t,r1972:fr1t.r"J i;;„" $512;253 rl,' :Z66860UQ r 7..92 ri1 1973 +,n ; ,xrsfl I ~ ir9.4rtSS.723i, ,relf. 6,158,0001' OAT 1 . : ! 1974 102,222,840 7,575,000 7,41 a 1975 112,158,726 71187,000 6,40 1976 124,327,113 10,195,000 8.20 1977 136,540,625 120024,000 8.81 1978• 271,339,229t~ 11,904,000 4.39 *As of February 1, 1978, ''increased Basis of Assessment from 40% to 60% of Actual. B8 r 1977 AS$FrWO,;YAF. UATION CLAS41FISED t;~ x it, i i 1917 Aew~+e1 R or Fell Vale Adoe REAL PROPERTY: (Residential and business land and $213,135,760 73.90% buildings) PERSONAI: Merchandise inventories, business 40,140,54 14.29 furniture and fixtures, and banks 10,593,764 3.79 Automobiles 16,948482 6`04 Mobile homes and aircraft $284,820,320 1t`0.00 % Less: Old age exemptioes {0,089,440) (3.24) 391 880 Disabled veterans 5271,339 200 96.62 96 1977/78 Net Taxable Value f TAX,RTE 414IITATIbN All taxable property,within the City Is subject. to the assessment, levy and collection by p City of a; continuing, direct annual ad valorem tax sufQ;ient to provide for the payment of principal of and, i0cffslt Asti all types of tax obligations of the City within the limits prescribed b I law. Article X I, Sectlon 5, of the Texar Constitution is applicable to the City of ~y n rt,.~gd,ijmjtg Its Mh'mum ad valorem tax rate to $2.S0 per 5100 assessed valuation (for all city purposea . he City operates under a Home Rule Charter which adopts this ,Consitullonal'provislons. J MUNJCI?A~,.,$AXFS TAX 0 a, (EttesW April t, i96!) Munsc~pgl k, Its sixes are remittcdlto the it htb'niMy'by ;ht' ~ tate CompitrAerl ti~yr deductidn of a j 29 service fit. f foItowiing colhl iiodf' ire'{ise t am u'nt t~c IYO by the City 'O thb yedrsl Indiatm. 9 11 ra r. 9601 ) - F9)elydtlltet t1 r 1; I I e AI Veloree { 1 f ToW ~dendrr ,,1. Colkcid ,t; ,"Q I Ter Rate Pereta Veer 1969 S 559,693 51f:924b1i 50,7788 $14.40 '1,: I' . ! 1970 r 607,716 52.89 7933 1971 { 711,871 507 .8363 1972 778,333 4$.12 .8180 8564 19.68' I'' 1 1973 875,564 .50.38 20.81 1974 926,080 33.29 .9059 1975 I(1,100,932't.:t~lt~ r;S268•"1:~r~? .9924 221.39 5,28 1976 1,194,335 56.66 1977, 1,254,452 ;X$1.88 ,9234 76,19 i~ i i rr USTIMATED OVERLAPPING F'UNDED'bL-*Wr'IIAYA$LE'FttOM Aq VALOREM TAXES (Am of Febroar7 1, H7al ;r ! To, O+erlaHtaa Fwld Food SOMAS" _ Debt A»Ikebte Dept City of Denton $11,904,000 100.0096. $11,904,000 Denton l0ependent School District 4,112,775 78.44% 7 148,061 Denton County 1,723,000 29.17% 501,183 70TALOVERLAPPINa FUNDED DEBT $19,$55,244 Ratio Overlapping Funded Debt to Assessed Valuation 7.21% Ratio Overlapping Funded Debt to Estimated Full Taxable Value 4.32% Per Capita Overlapping Debt - $408.23 TAX RATES - OVERLAPPING SUBDIVISIONS 1971 1976 1975 1471 1"j IM s loll IM City of Denton -"IIjt2}itlSR1j781i 70„1$1.70 $1.70 31.70 $1.70 $1.50 Denton Independent School District sf 2.' 2.00 2.03 1.00 1.99 1.99 DehtohC6uhty-i x,93 .95 . Stat'obr'Te>1a3 ~ 1.. [,R~ ~ ~ ~ mat 10' , 131 '~"fi'1l 'r A7-'] ' •117 fr, '.271 -!'.32 ~~ut!si r. ~'d~'trr1VA PA'LCt~ + )WE (i. 1, ~ 1.E ! 1 r„r)ri ✓;9 'tll~;`,I I .ti^ .a~~ C; ~l~i! !i. .r~V 31~R. ati:7 i .Ji l.~r„ Iir,~~E~+~ 11'vriN Vlr'{~rirh %.7)7>IYI *p) ~t l [ Toste►k facile ANCOW Now of ToiPlryer Y i. I Y'Nfrtorte o~ 1'r ti[y~ t f I Auto" ehutia iMuA I ~Il tii; 9rl!l~~13V Gerle1~,1 T00Phgp f,CoTPany Teieprlorle yt~lity ; 1.98% I i ~wi Ili. I i )',Ei~r r -t i 2 1 rr(i f b'0 '1 7 ~S, nI Rmo 1~1 1 ~°4J 1,97 ,g46 1.46- Fen n Crawford Building Corporation Shopping Center 3,104,400 1.14 Denton County National Bank * ,,,O Bank I • 2,780,960 1.02 Moore Burin s Forms, Inc: r,, r I.r. Businns F'r}S 07nufacturer 2,676,090 ` b.99 J. NciihA ayzor NA 'k ~ I Commercial Property and 2,650,850 0.98 <ap 1 ! i I),, Office B4i4n$ Lone S 1213as Company , tr Gas Utility (e. 2,004,900 10.74 Acme i3r ,Company brick Manufpctl!rdr 10797,430 , , 0.66 Vl~.tgale '9spita! HcApital 1,628,340 0.60 ToTAy, u! ?r W I V,? e 31 35 ,.13,120 11. 54% E INTERWr AND SINKING FUND MANAGEMENT INDEX I r r , Genera b~ligation Debt Serv4oe Requirements for tax Year Ending Septe6'kor 30, 1978 t i,30.512 Interest and Sinking Fund, All General Obligation Issues, September 30, 1977 $ 167,517 1977/78 Interest and Sinking Fund Tax Levy 0 93% Collection 1,204,312 1,371.82 Ettimated Surplus S 118,317 ~■1■■atltttt~ 3f"t,fi ESTIMATED!ASSESSED,VALUATIONS I.i! I (13asr1 a 60% at Emlastd run Vd") 1978 r $2951760,~ QQ 322ONR000 1979 19W...... 351,392,000 1951....1. 383,017,000 1982.......................................... 417,489,000 AUTIIORIZED BUT UNI$SUED GENERAL ()BLIGATIO\1 3ONDS Dolt Amount bwel Uahsur4 Purpose Artlacltt4 _ Autwlid TtDsit Baltoct Street Improvement 12.18.73 S 6,000 (N $5,500,000 $ 500,000 Streetimlltovbtncnt 2.28-78 1,815,000 --0°- ' 1,815,000 ~ LibXary Bo ds 2.28.78 775,000 --0- 5775,000 Police&Ct~itirs2.28.78 880,000 =4 880 Fire Fighting 2.28-78 530000 IMa'l , --0 s l o 000 $4 50a- ODb sl9 1,1,;,1 f 71 E,t'df ;y )rlT WATER AND SEWER SYSTEM OPERATING STATEMENT =,i ti ! ll l+f'f/ lfiri ti'n't ll l )s, tlalCn r ~~1.~ 11~ ~A _-flscd Ynt Fetid II 111 i 'IF 1 :Jllt4fj. Se$t*b t30, GWtsa►er3Q Stpte"trA " r ,l' eaaee30, Septevab"30 . ' e3 19" IM 1910 1974 . ~..1973,..~ lien e I Ji[l~Y71 ':,ft rtl..)J17~~1t11n :(,(lti , I 1 il .,il tail l•'.r µ l 1 k rX" t tocome sIS72,7MS••• s2,323,868••'' 51,886; 61! t 1 N,41)XT1 ~h14f 741 f! 3177b1 1703.90. i 1,416,309 ercf t 'tr 11. ° t,,l l ,1 --7-4 etpente - Net Available for Debt Service ,..1 f 868,881 S 907,359 ,,I.S,t7, ,0,101,; OM.654. A, µ1rS~%% I P)1, 3 Water Customers 12,327 12,013 11,591 l 11,636 11,251 11033 Serer Customers 11,831 11,496 10,981 10,753 10,641 10,433 '.I I e..) 'q V1, fir Y:e111 r()I/ $Water and sewer rates increased, eff'4c~i e„Jpl~!,119174. "Water and sewer rates increased,, effectiveyNoyem~r 1975. ***Water and sewer rates increases, effective June 1977. lvi,;n,bpt 4cq lu~:~'u+nr;•1 ,H 1978.1 8 „ r , , „ r . AVCra ,.&SA yAl P,dI i?;C1p4tf , I t~ fst RCquir to, t Ir t ! n S 44'11`t~ r R!f Gr p r~er ge R 4,lff. FA~F. 9'30u , et InfR1 .g t} t r . r ~s ,'1' ra•11, i.9 1~ AIfyr fSuirii 9~f .1978. rtt;ttlt Ix4~ t ~r~11rs „ Silt' rtr±F s . 1.2es 4 ~3. I _Rai all ovete of Mitxfin;lm equi emenls by -30- 1 Net ~lncorrf ,..,,,,.....,,,.,,•y.~r;r•:.,fY?.7r, t Water and Sewer System Revenue Bonds Outstanding..... : $6,585,000 Interest and Sinking Fund, 2.1.78 S 280,820 Reserve Fund, ,,,,,,,,,,,,11.io,~r.."A.tt;i:;..(lW.A..Ita.t-1.1.;.,.......................,,..,.. $ )25,630 t. It I,, 7'. I;? rtsFl :hill- ~I! .i;,31 .•:i~ ~ ~l'~ ~'J Jr.<i , II I''. t,l~ 7». k;;,a, t+. ` .f t'. +(E I r' •I 1jj,. , :I lI:I.1<„_, 1'. 'a tii6„(I r frU~1 II t,ll )Sfl) U3 t(113r7 f~ tl911//I et.II _Y'. r,)l Ili Iii nn ee i -7.T--17-7 ti AUTHORIZED WATER?AND SEWER REVENUE BONDS pale Ammar Iword . L+o d Porpu Aatborlefd, AWlwrized ToDste balm$ 1 Water 5.101 $ 5,275,000 $3,475.000 51,800,000 Sewer 3.16-72' ' 5,723,000 $25,000 3,2200_,OOp 511,000,000 $4,000,000 $7,000,000 MONTHLY WATER RATES Effectlrr JurA 21, 1477 RESIDENTIAL USERS l■slde C'kr umits _ Orlslde Cilr LJmIrs First 2,000 gallons $3.25 (Minimum) 2000 of Inside City Liim;ts Rats j Nutt; ; 18,000 gallons 651xr 1,000 gallons ; NextX30,000 gallons , .$I ter 1,000$414441, All Over 50,000 galion3 ,50 , er 1,000 gallons I, EI?fiflj1,11;^i`zflrr~sifff.51.1If 1^,(1el tI"e,11 COMMERCIAL AND INDUSTRIAL USERS fv .:,a, , 1 1d! l 1.l j 14 n{ Ooaa of Lleks 4'P! F.Tt'j Ql r.-p1 4"~l i+e~t First 2,000 gallons $1.00 (Minimum) 2004, or Inside city limits Rate Next 18.00 gallons ..65 por 1,00 N01 '30,000 gallons ° .SS per 1,000golloos All Ove 50,000 gallons .50 pet 1,400 gallons it , MONTHLY SEWER RATES Pfitectlie~Jriae'4't;tr! (Roi l q' EderGM loipd6iir ` Re>ideotloi Comuertid ud todrNrld `t ! Ertl ~ i,~ 1 , ~ir3 2,000gallons $2.73(Mini mut~ij altdrly,r' SS00~MinlMtlm) ' 15,000 gallons '.Q per 1,000 gallod3 1 ext` 't '48,M) aflonr h ""41 or ,0t10 WWI Nex 5 1 34000 galloAl 32 peY 1,000 atlon f4Y " S(3,000~bu~ss 32 '~,OOt't~islld~is ..(Maximum Charge). {L J`S !7✓ } 1f t!r .~7?'/ c.I i~ , T' 3 >~!,!7 ) cx .'Y .e_ ~!.'f 1. f(} J1, .-,rl .1 '1 ~ }tV if WATER AND SEWER SYSTEM I Water Supply. Present municipal supply is obtained from both surface and undergru'ind sources. The City has previously acquired conservation storage rights in nearby Garza-Little Elm Reservoir which was constructed by the U.S. Corps of Engineers. This reservoir contains a total of 436,000 acre feet of conservation storage. The City of Denton holds rights to 21,000 acre feet or the storage, with the balance being held b? the City of Dallas, The State of Texas het issued a permit to the City or Denton allowing an % 01 r > -7 , r average daily witbdra*41 of approximately 10 million gallons. Rem. studies of the reservoir indicate that tyen' during a c66041 dtoYgbt period the City of, Denton's portion of the total storsgd:will produce approximately 5 niitllon flaltorm per day. Although surface water ptovide;: tht major parti oft (d al requirements, the City has an underground source consisting of nine dap wells drilled into the Trinity Sand Group, comprising the Paluxy and Travis Peak bands:,.The maximum estimated production which can be obtained from these wells is 5 million gallons per day, and the average daily production is estimated to 1?e 2,5 million gallons per day, Future Water Supply. Long range plans of the City of Dallas to provide an adequate supply ofwatei in the future provides for the construction and development of the Aubrey Reservoir In Denton County, located immediately above the present Garza-Little 'Elm Reservoir on the Elm Fork of the Trinity River. The proposal site of the Aubrey Reservoir is located in Denton County, adjacent to the City of Dentoii, and it has been determined that the most economical solution to the water supply needs of both cities in this particular area regaires the maximum utilization of the existing supply in Garza-Little Elm Reservoir, to be followed by coordinated denlopment of the Aubrey Reservoir, including an exchange of storage between the two cities. Ao;ordingly, by contract dated November 19,1962, the City of Denton enteml Into an agreement with j the City of Dallas which provides, in part: That at such lime as Dontort's,aycfage annual yvitlydrawal from Garza-Littip Elrn Reservoir exceeds the safe yield provided by its pfpsent storage Sight (see first paragraph in,t4is $fVtion) it will pay Dallas at the rate of 2lht: per 1,000 gallons for any such excess water so withurawn. 2. That Dallas shall be obligated to sell tfie bty 6Vb'efi1,4n6t'ro6-x'6kd'art fin iugkqtiiciik equal to an average annual raN, of 13,000,000 gallons per day at tire, establsh~ pries of 2441 per 1,000 ' greEabl!'to't}Se goberning gallons through the y ae 1980; subject to an extenslori ii trrlle iii6t 1', bodies f both citf s iJ :,Pli°r7 {.'i"i!{!"if'I~ tU 1.+'a C) al'!{ ~'1 S~3tI` ) 1`,'Fi!S•,,) iii t1 ,fmu I- 41~ 9:u 3, That the two cities will cooperate In financing aid~Wfi fubtioro?-(hd Oro'p&M`Aubfey Reservoir when required; the City of Denton to pay not In excess of 26% of the construction cost and the sty 6f Dallas not lets thslstlOrWatdr to bd stored In the rest rvoteiball be proratad'bA the bdsls of each city's assumed portion of total construction costs when the reservoir Is constwed >J r g;Ygoepeo,pf ibe64brey,Rf4s~ar 11,}ne'uoe i>! DaUps; r}r►d ? ton;t, P+►B Qatfge Water Studies, and it is anticipated that conslructloq a itai} fa ~i+y,tvi begirt,prjPr,tQ,}9>~Q,;,s04.trad negoSlaSl.9114, 4 underway between the two cities, as sponsors, and the U.S. Government iCorps of Engineers), for construction? Ar,,!1of JS,r floyojr l;t,is A40 ,pate¢ tb.4 PrQlicl Yf►lJ:bo.S4Ps1ru 4tl4fttl+ S~ by Stu ~.4v.sC4ment for the storage odwaters, as well as municipal and industrial water storage. Costs allocable to water storage rights to be acquired by the cities ,gt4 Fui f¢4t1y fAi4!1 a4 apPrPJ4im;tgfy;SlS,QpQ,OpQ~ tq,ae due and repayable over a 50-year period following completion of the project. Estimated safe yield of the reservoir has been calculated at 131,0N0, 8a,119'o pgr,4(ay4P1%Y4JlP~4,0940J,Salon , '1 bgotitled to.Kogeivgup to 21,000,000 gallons per day, Thb amount, plus a safe ylel of 3,000.000 gallons per day robe oblrryed front the present storage fights in Garza-Little Elm Resenblr, will be sufftc(enl t9 M fe{rah; ~tit1;~'NIIR1FSed< 1(Srt needs through the year 7000 SSfA! !%,.{'Jf~l nl << Ri119 i:foi f1.?:? l~.;yJ c briq pw)17 71 'T:,,I Water Usage (4f '1 A1ers;1 Mmlimip }1 At for idii M!{twA Jr DOI 1966 4,130 000 $$,548,000 1972 7,164,413 I ~•,l 17,100 1967 4,701(066 11,254,200 + 1:73 ' 4,536,901 ` 12,175004 ' ' 196g' b ,Obtl ~'9 4 1 bid t 74 6,822,060 12,61 4110 1969 ,S6d,~f8 R,%7J~4~S,f10tl,.. to?S 7215,587 13,350;060 1970 6,485,522 1),725,700 1976 7,264,000 14,080,000 1971 6,808,151 15,052,800 1977 7,923,000 14,119,000 I 777 i The City owns and operate` an activated sludge type wastewater treatrgeat facility: The first elcrrtynt of this plant (vAth a capatity of 2 MoD) was placed IA'operation in 1961. A 4 MOD addition was completed indput is operation during 1971., THE CITY , Location ~ , Denton is the County Scat of Denton County, located at the apex of the Dallal-Fort Worth-Denton indu;trial triangle. The City covers an area of 33,2 square miles and is located only 38 miles from downtown Dallas, and 35 miles from Fort Wvrth. Economy Dention is In the midst of a rich agricultural and livestock area. Thb hub city of Texas' noW "Land of Lakes" region; which'provides Denton and nelghborin'g cities with abundant water for municipal, industrial and rlcrFstiona) pufposEa € it~It i€ ° ) t1".€~€j£€'J ~'•'d1.~ ,iQll ~ n(1~~ 11 l i!.d ~~i-. i., ie h4me, rof tI vt{t4ito lnd'<fSa1 i~t}frfsjs ry , . 71 ',I . , The site of lire Nation's first underground Control Center of the Office oC 'merge) fanning and 4.ftIRC10GGY>1.ti.~dl;Ckfgi►1QM4~IizatiORu .En€ ~s~~_f,,, a ~t€_€~r;. ~',r ;lir'r.yrf:€~ ~,'t ~sts si.rit f a }n.LY fie, r}1;')}lai! :Y 1'a i ~tl 7t.' ~X9 fil Vl One;of 1ha Itpy cit6 in11te ocoa4mlca1ly aignifioaut Dallas Sundard: Metropolitaa'Ateaj s:+z Economic Rocking l7enlott`i'tbONsli diveisiNd`ecbtt6'tttjri`s'fefiictti!d In'the'i able annifal inc~rn ' eY'ih'tli!`s~hold, Est_iiAatldit $130579'E1'itor tied'withlh8•Stato'KvLbF'~Ebf~~13`1f7." , t 1. tir_ ~ 5!f'.t :.,a t 1'4U')j :.[.7?;11" •~!1 ~ ~1 ::;~J finis. i. f.;L J,~A • , 4.x1 r ~r nJy,i l~c's liHlU Dmntod County, Efteclivb!Stiylttg Incornti foi,1976 t6falM app}b3trrhle't ~ S ff e1y' S39y~b;000 `,I)tAtWCObhtyYrete 14616`f6r 1916totalod $319;824,ODD. ~i of I' , :1'~'.. ,.~J :r f,1~4!'i~l~,' ~;Itltff:iL' i )+>~•'.~ia~ lvi€i le, t€4St'.>I'~. r.7 `3fita'tiii:? iA il,i, t'l;it (i) S= . .I~:.~ 1 LCD i~(1vEr 92:5'df lioil~dholdtl Hgd'Na4h"iiftidm i'fi i'>lets{'~'f~slO,t)Ob'ih{14i1a~1711 tw 1~. t,'.~, ,r,~r~~ r3,n1 qtr( ~ir~tri~~l.l,~v !~1 fuk11;-111,;1€.li`!;e(~a ~iVTtS.>~}~1ai 5o~11 )1Vr a), 9!~'a •lCl ~'.NU 1'f11 f>.f 1.-~it~ t4 ikbi, f,1Q~1, i° 'JZ [Al7,lUf11iC!•~!q'1PbpiilaifA' V~il~s°.1 li,-1! Al. t;Sa 'Ill)f 1"e1 i'A f't1II 11W„I. 1! t~ tat ? p."a It Denton has noted a consistent population increase and a steady economic growth in the last three decades. Populatit'itt at tlfe 1940 Cent of was 11,191... at the 1950 Ctr'64 it vjas 21;3?~ ; at the 1960 Census it was 26,844 ..'.`And at the IOU Census it was 39,874. The 141$9 estimate is X7,900. " The Cny's eaFenI toyrar~, p Sop rug4 on Texas' ecogQ4niF, lacer Is gµrj1?y* partly so, the steady InPuences of $olfrn'rnFntal acttytty,%y~hicP ipetydes the year•hy Y4?~t QxPansl4R 9f two Statysupported universities, ,A¢ partly because 011~ such envjrq?mcntai factolo,gs ttF lgcation^i q ric agricWt4ral region, /.1 Ci ~.1,{ 'n if i•'a .'1 rti+ ',€ri ~'.i.fli 1'] 134 sorho oil and gfs production in the northwest section of Denton Cowity,'its inclu0n is the Dallas-Fort Womb Mdtoplex, Its proximity to throe of Te4111a" largest reservoirs (Lsko Texom4 bdng oaiy 40 miles from Denton), its excellent highway and transportation facilities, its mild climate, $Ad the less tangible but infloetttiil aspects of social, cultural and educa;idnal advantages that have prompted prof4ssioaal or "white collar" workers to choose Canton si a place of residence. Industry and Business , A total of s5 diversified manufacturing plants are located in the City. home of the largest are as follows: lumber"or, COMPu(r Product Emplo}eat FIRMS EMPLOYING 200 oil MORE Moore Business Forms, Inc. Business forms, sales books, ac, 655 Vittor Equipment Company Wcldin$ and, cutting equipment and - , pr4ssustvplvca 125 Russell-Newman Manufsciuring Company Womens and girls lingerie 350 School Bass f'Is p, ~:.IQ tfn,f~ nP, fq 'I pi : l r r' f Fta►As EMPLOING.100 TO I" r 1 f3 la•,t ,f1 '.:.1 1 IL.,'`I 7 rl) ,Ia' ii i •.,~3 rt r rata, a;. x90.+ Acme Brick Company i( IBock andtile; Emeonite Multi-color plastic parts Ig5 iTrinity lndustrics' .,:iti-Arj Fig LPCifueltanks 130 ri; i ti , t t. i Morrison Iglii4ng Cgnipany i t 0 8lout and cornmeal products ! "125, TurbCRefrigerat;n ce/ mpany Ice-makingmachinel l~100' to FiRMs EMPLOYING 50 fC099 7 , yj yifitl!. [~]~1 , i LI; ! '.yN '1(S, ~5rr♦:,..;.r. rnl•t:}~"ri ~1t11 ~~71 ' tJGaIL~' 'r •dchrc~e~' r har;i .7i antl s+,illt~f i Transport Systems, Inc. Trailers .4•i4'I 90nt,i+. b0 Ohio Rubber Moldad plastic parts k.,fti l lr; tg:t,1 Jsgoa Construct;on Company Asphaltic concrete ~~~'c( rtlCtrecnt:3iadtCoolpsny,~::, {„i !.t .Packag3gl>tstddislribdtl¢at ,,,+t ri i~rt.N 3f~) A'Jtllil )Y7 fi; alhl k. i:: i- l'7~ %i f~•','i t, t1i!lt.[L i. t'+li }i't (+~r b',IrG rJ,'}1 .r. ,;1 t;11 ti/1 Totai+l#boc( force employed by Denton;milnufacturers eXcee6j',500; Total miual manufacturing payroll Is estimated in excess of $21,500,000. q 17 ;'.,i .f } s..: 1 ":'t!; r1i19`1! li Ii <,7 iJIJ 4:•,. US ( 'p; ~r ;+ri't t, ri~l t, ,lrrr~?!d f. rt ns It Sixtedn no* snduoalpynta helve *a located w the City'6f Denton duringthe past tea years, With itho devdopnient! of the indtopofitali area, during, the •1970's~ espdclally!the'Dal)as-FortiWt rth: Regional `AirW,litiisupectco that 0,lnton's industrial~grctivt iviltaoteldrate sigdifcantlyl,P] lrt~,i;si natal t, r(r.rn,(t 1c Ea,f, Moore Business Forms, an international company, headquarters their Southern Division out of Denton. The Southern Division consists of 16 states from Texas to the Eastern Seaboard. Moors Bssin* lrr a a4a~.~ 1 b 1 t ,,FOJIA3 i ,t ~ ' , 1, t n lfe ~lfp Y E S! f 4 f 0, P ; ,A9R►P9?K 4 if k1n4JA ,world. dfl Fkn13 tM, ~9 'Q 4, t 1` e}}vv, . t r F441440' a J IAOAIe.foc4•, he new faculty is located on Interstate xlig way 3 Manufacturing and production figOic>. acekgk}fpd,in,a separate structure containing 143,000 square feet, Mglor gut C1+t Q►Jip Y cdTnQlft ,4: 4R►t;.atc loge„~?k tlu(Ing 1466 t4 Tci9cate~ lyeriton from S ~ a a ran~daco. A 60,000 squarafoot addttro,n to shops and o iico6r1rpc4)ioy,ilgh FomplciS In a"4 00 1squaie-16`trb +~a na Inetce Aanu~aauien nd d ei~a ion~o ~whokialeQcosmettics~a4 rsons t!aB+9 i ~i:...r Acme Brick Company doubted Its production capacity in late 1965 artd Is now tht Most modern. automated brick-making operation iii the Southwest..Aedw prdduces in extxsi o (.70 grtiltioa bricks'[nnually. "Morrison Milling Company peoduoea Peaceniaker Flour and CotnmeYl primarily, which is'distributed world-wide. Most of the grain used is grown in Denton County, Emconite opened for business in 1962 and is now one of the largest manufacturen'of metal plated plastics in the country, USA. Manufacturing Company is rated as one of the top 20 lingerie manufacturer in the Turbo Refrigerating Company began operations during 1965, and is now the world's ,largest manufacturer of industrial self-contained ice-makers. Jostens, of Owatonna, Michigan, completed construction during 1969 &j new 36,006 s4uare-foot building. The new plant employs in exce'si of 200 Otsdns in the manufacture sqd, distribution of school class rings. J, Peterbuilt Division of Paccar Corp. fiefs scheduled construction of their new plont'di180 ti el V land in Denton for July 1, 1978. Subject to amendment for technology the new plant'*ill employ 800 persdns in a 30,000 sq. R, building assembling 12 diesel 'trucks' I*r day. Forum Plastics has scheduled eonstrUctidn of its dew plant on five acres of land in Denton far March, 1978: Their plans include employmbnt of more than' 150 people in t1v3500M 9q: nr*plant rnaAdfacturing molded plastic parts. kr;4r;,r U:) sr "+;,'syi,]sv T,r11!}'~' ~Trinlty Industries com le q PUr1; rid ~,~;tr3s~r'i 1 .eri°'r durlgg,1969. p ;A.IIfW,, .+g441e-foot building in 001j,0gd,r y,fAit4r,addilions lWvW&l Future iDenton is most favorably lolated trithip 58 miles of two major cities and isr O!M'$Wally; a Ott of the Dallas-Fort Worth Metroplex. This area comprises a market which is growing at a rate three times the aatlonal average, Dentoe. Is fart becoming an integral lmrt,o( thli dynbtnic industrial contpldx;;,1' Cplil~d?,I.'1 17 r-',is:Y { Ir,h:q,?~ :i i{rr7rt4 A plentiful supply of skilled labor is available to industry to the Denton area Total labor fora in Detitorr,~ ~urtty,i} aDpfdxi<hatoly:41i35p.; with approximately+'34,?50 prfkatly,'e pled : for an 'u my:vyhtenUpetoantage~llf:oaly 3,99J<;,Theta°are h4n principal industrial districtsTe )v Dartop Industrial Park and Rayxor Induilrlttt P#4k both of.whieh have4ocesi to tnore rhea adetiuate rail and highway facilities, and all nocessory ,,.,tiller. l9 !OU rit,1elIi0 r!7 tI I7,e II,oII } I;; l tl 1, rf,,.'a,'~ hIM'O iE110] IA.~, rJ),'I1 110.1 >(1) 7!;`~ r If .r~i J"qOt/ •Agrlndtgre(JA bl~ic4~ n, ] 9rf1 r» cr;x~] mint a~ltld ~i ]u r n°:,, r i+~r.l r rl!'c ,r r3 r~;,tr,+) ),,+n °'13~ift`br~ Ce'y3li~i }s dNe"of t8d'iito"f~ ifiVe~sil~$d ii Ftdu~tb't•e~tldllntltb'~d I'exAs: ch Wi't~j'snil'tYYpp; r'a'n)rtirig ftb~r"riblock ~o~esihsenldyIdahi;'ii{td bdd'!:'a rr( jn'4AidEti~lttIs'ahid6f eeat'drfordWrilflWrit l'dg afld ilvii(6ck'rJ&lr1g:''1 I,,,ri r; 1, , 1 ' Principal cops are cotton a rn, wheat, oats, hay, grain sorghums and, peanuts Dairy cattle, beef atife, l~iee¢, h¢g , cAlekEn} tinq ur Cdys corliribute'a subetar~llgl and ~1e Iy f~icfit ever~'yeoi to If t farrtl~r rld iiv'est k men"of ihb`iuh'tl 1n`c+ortle frot{`6fI l~ ri`~ufrrutte t(dd ttdestb kroiodu'z.4;#era'ge~;n'exce9; of"$31`514' Ado agn~isY ;8110 The Texas Agricultural Experiment Station, Sub-Station No. 6, located about five miles rArthvrest of Iknlan, is contributing to the prosperity of not rally the farmers in Denton County, but to farmers ail'ova Tom, through experiMents In imail grain research'rkork, crop rotatioa, pastures, eWl building; contouring and plant disease. 51,400,000 Underground Control Center Denton is the i,ite of the first Underground Control Center to be built by the federal Government in the United States. This eenie` vas completed at a cost of S2,400,M0. It consists of 4n sbo' - ground "frangible" building, for entrance and exit during normal operations, and a two-story undergro fortress, 142 feet wide and 172 feet long. The structure has its own water well, in infirmary, first aid station, and communications headquarters. Site for the structure is about three miles east of Denton. The huge underground center serves Region 5 Headquarters for the Office of Civil and Defense Mobilits.fon and is designed to resist nucleatabtast and radiation. Region S consists of Texas, Oklahoma, Arkansas, Louisiana and New Mexico. i In tlme'of emergency the new renter will b6use the, administrative personnel of f4,0D) federal employees in Dallas and Fort' Wetih: Tn tha? evint'of`a'nit'Wal emergency the center would serGe a the coordinating and directing point for the activities of some 235,000 civilian employees of the federal overnmeni. tt ~1i1'h3dse 200 persohiroh a jay-te-day basis, or SW on a 30-dfiy, emergency+; liuO)W "tip Cis. E E'~ The control center employi s} tu)I I~ rte people witfi'an annual payrop ik extes's';df*00,t)dl. '`rirfatlan lI x 1i1E cl is ;~q ~,:,,f•.:;:. Denton Is located only 18 miles northeast of the Dallas-Fort Worth Regional Airport. This new facility began operations in January, 1974. It is the largest airport In the United 5tath.`sd h largdst'ifi1 Id l r . t< f- and reprenots an investment, in excers.of $700,000,000."") ll. ii.p; eq7 II ;e P-, ti[J:">> 1;! 'Ill 9'11,1 I1.It h !y T I•, Dontonis the local point in the new. loterslato Highway System {U.S. 35-8 an4 U S.'33-W). UtS 3S•E connects Denton with Dallas, and U.S, 33-W ties to Fort Worth. .TAe sasb.aed west:sWfons.cif.tbs U,S.,:lateriteto 3S.farm:par1.of a vaiil.rtctwork sht bogin4 at the Canadian border on the north and traverses the entire United States, to t:pd,ttb4 [yfcxice/I border on„the south. North from Denton the highway connects with Oklahoma City and thonce through the Midwest. (?j C~'"' 1 :~Ci7S,l 4'.i::; 7~yiltt: %717tiy (.11 fYli a~`'l rill il' i~1 SC'• S ir!I,i1:3A1) ~ ~ r1'Lf7i`: T. '~Il:I . !I,',f~Jl"I :;Railltansportatlort, isliraished by throo..railroad~..-7r-,Snatit';l't, Tgss.and FACifio, .and..Missogti! Kansas-Toss,, bps.lrapsportptipri by Contio~ntsl Trallways, :a.Motor freight by: twill`; truck lipes., Jr o3 (Z:i "+f.;Fl ~ fP.lt~i 9~1y~ li t`II i :ilil'Jl r!, J1: R!'. i"t1iL.ft ilf I'1'-7 ,`nil I' L', '.I1t~f=1 l: i1 uT .3 .~:!,'ri.i :•Cl Educallon 1, (r. ill YlE tJ 1r'F '!r ti Denton is the home of North Texas State University, founded to 1890, and Texas Woman's University, founded in 1901. alu 1 , The two colleges have a combined enrollment of approximately 25,755 students, and more then 1.000 faculty members, More than 16,000 (Spring, 1978) students pro enrolled In co-odocational North Texas State University, This university has a larger enrollment than Southern Methodist University at Dallas, Texas Christian University in Fort Worth, or Rice Institute at Houston. Texas Woman's Unfv.rs;ty has an enrollment of 8,739. 'E•f1 North Texas State University campuk comprises a land area of Mort !h;jn 34 acres and sixty-nine buildings valued In 'excess of $62,000,000, The Univorfily embram saYtn geadetak unirs of colkget gad In 45 ssboo)sr, areas. and offers Bachelor's degrees in 66 fklds and Master's degrags to If 3 areas. Doctoral programs are Texas Woman's University, a State-supporta7 institution of bigher learning, bat completed an extensive buylding program, emphasized by three .,tgh•rlse structures. These are a 14-story office and classroom portion of the College of Education (opened In 1968), a 11-story dormilory Cesigned to house 640 students (completed in 1967), and a 24-story dormitory designed to house 707 students (completed in the fall, 1969). Academic components are embodied in eight schools. Science research programs are conducted in chemistry, biology, physics, np;rition, toxthcs, bone microradiology and other related fields. Over 400 Denton citizens hold earned Doctoral degrees. Denton has an outstanding Public School System, accredited by the Southern Assoclation of Colleges and Secondary Schools and Accreditation Division of the Texas Education Agency. Approximately 69% pf the graduates of Denton Iiigh Schoo) go on to college: The Denton school syp:m offs.'rs accelosa# programs in such courses as S.M.S.O. Math and P.S.S.C. Physics. A few of the vocational training courses available JR, Public schools era agriculture, ,bomernaking, distributive education,, industrial education, mechar~jFal draw»tg, t)ooitwpr}c, ctcr~¢7~ , of t e,lfaegltY,~.o d Mastef`f: , desras 9 }Ilnet~44drn~gte~y ¢ „i~ggtle~i{_inljool~torertctpfsopa Num lxr oC junior high schiioEs 2 children Number of senior high schools I Pupil to teacher ratio:g Averapkl{ulcqts W 04ssr 24.1 par~ ,i: r, .~,4;i M, > hemi~otyr Average number of hlg~t sctool }4igltS~hool 1 graduates 225 1976 Enrollnilnt $If,VQ0,094.f)atlf4tp State sersgott, Construction began in 1958 on the SI I,WOXO Denton Stme, School, wl!$, the first phaae;o! the construction being completed in July, 1960, at which time the first group of students was admitlod. fhe s&vnd'pfiaid'+das eorhplttod Ih 1963.r11 'IS bne of AhvIrl a's nioit modern end'progreisive educational institutions, rljtr, I; t P;~ 6 1-4 j ...11'1, It tl ' ' This Statt4tipfportrd oducatidnel institutiorl for mentally fcUrdtd Texas fesix'tnts it located oA'a 200• We site pkld for by'bdd'toh Citiiens, 1 , , 1 r ~ ,c., • 1, , Present facilities include 47 (including outreach dorms) dormitories which ac-- 1i18a stbadmu, $ buildirlB "s for o mend a e more than >rhysieally'hstldicapplxl~eflildrttt'lvith b riapadty of 600, 'and a 32-beQ acute hospit`al'with sd~porting'facillt'iel Arch as Xiray; 1&WAt6ry dental,,tna phumaceutlcal; In adrlitloA to tbesd buildings, there is a modern administration building, an academic building, a large laundry, a maintenans shop and a warehouse. ii 1.yi;A: The School has a staff of 1,761, with an annual payroll In excess of $13,728,948, i Theta arc five banks in the City First Denton County National Bank, established 1692. , First State Bank, established 1912 University State Bank, established 1963 . , Westcrn National Bank, established 1963... Citize j9' Natidnal Bank, cstehlished 1976:' "Jl r;'•,- ? t; _rt (!ii{{fJ~lf hf,; ~j , I :'!ill 1, 'i , IJ ;,.j B•12 r`, , . a '1'c,• ~.v&'. Sri, hr Combined bank deposits r r.i I r I J 1 1966 SO, 44,167 1972 $114,161,4 9 I 1967 58,32V,'61' ' 1973 126,209,608 1968 r ; 70,41 19j 31,018,000 1 1969 72,84 197$ . , 140,7470770 19~6 1 11671 13,982 „ p 1970 ~ 93,54 , F9? 1971 98,05b * 1977 1,006,073 Two savings and loan associations had Combined year-end de; #:ts as follows 1966 $25,337,991; 1912' ! $33,692,053 1 1967 26,654,055; 1973 163,584,046 1968 29,09249931 1974 66,202,425 1969 32,371,0401 1975; n? 69,310,598 1970 r. 38,262,559; 19261 r 84,238,471 1971 40,441,640; 1977x.1; 94,168,257 >~ecrtltlti~n , ~ ~ ` t . ~ F~,a:.tf iES" r~f!t.l rl,t : ia'rby Garz'i-little Elm Reservoir, one of north Texas' largest lakes, is.one of Texas most popular f recreation areas. The Gaeta Reservoir has a shore line of 183 miles located entirely In Denton County, In 1973, Garza Reservoir attracted over 3,OW,000 visitors to its shores. The upper reaches of Garza. Little Elm are only about 3 miles out of the Denton City Limits, while the dam is 15 miles from downtown i Denton. Grapevine Reservoir, another large body of water created by theU.S. Army Corps of Englntets, is ' located In Denton and Tarrant Counties. 7/. dam is 13 milts from Denton. Parks and recreational areas abound on the shores of both Garza and Grapevine reservoirs. Tare City or Denton has a 422-acre parksite on the Garza Reservoir, and this area is being fully developed at the present time. Boating, fishing, hunting, swimming and all water sports are the favorite recreational pastimes at both reservoirs, which, because of this area's favorable climate, are s., use the year round. ;B• 17 , 711 GROHTH INDICES yen f ` Bd PeraiNa lls Gaf'£ i WaJe t' , u Portal Meter t, r > slam T e R s 1961 S 8,335.000 80 v , rE . r , 1 1962 r 9,035 110394 8 411,118 1 8,426,072 9,"N 113 f , t 91500 120380 450,427 1963 11,054,869 9,4¢„ Q Ib¢, 9,954 13,659 543,088 1964 9,533,287 9,6 0 9,2435 10,047 14,589 594,691 1965 14,340,069 91980 9,495 10,073 15,600 622,337 1966 13.1 P90710,193 9,541 10,570 , 1711,90 43,618 1967 18,8~~,62~ 10,301 §,75'0 10,759 18,403 864,618 1968 150910,010 10,602 9,950 10,814 19,86S 963,348 1969 150704,677 10,147 ` 1 6 it4' R 101909 21,]24 r 1056,676 1970 18,105,423 10,748 1 10,117'' ' 11,047 22,530 1,102,187 1971 27,446,705 10,660` 101542 " 11,325 23,698 101350764 1972 25,550,863 10,954 11,433 11,837 28,419 1,390,570 1973 24,037,860 1,1'14 11,251'' 12,227 30,288 2,121,377 1974 .c 12,498,521 11,416'' 11592" 12,673 32,503 1,646,295 1975 18,306,334 11,755 11,755 13,061 33,094 1,704,744 1976 12,142,334 11,745 12,077 14,117 32,252 r , ulx d~r~~ 1977 22,244,075 14t416 12,232 14,,833 36,~07 2 1' o l i'yJ ( I uii:, .f1.~ 4! it ~s1 ~3171f Ir '~fln r ilEir} , ,1x'6,513 f.' !'J a ri ~inY'.l ~1. G',t ,1hJ rl D{~ r':1 l .I,, r F ~I~r}"t,) I Ji, •F£ ,'YJ a;~ ~ 4JSU{El r1 ICI klE r)I~Fr L~Y~ I£I I(J,f 17' t 'ialfh r-4 J}j~7 it b'flp: i) 11,~J~'t• f£u 1.!?1!V'u c,ovltY a)? larl f ,.Fi ;It ,111I0: .;ti, A 1 tli) i,£JI't,(l Ito er t Ctj Vol! h;4) I 1,) (1'.'I { , f,f 11~f J 13}l. ~U 4Ur✓7J•l iEii 7 ~I r',: S J o:Y )-,;.II llt tY lJ 7Y',:!i r1r:'u)IJ;'ut,Cl6V I~::)j 4 j e'I lr,.'~'y'Y!Y. ICY ~l;i!Illfr, YG;ti, .5i bat. CII,YIFiii,rl)jh'11':11.1Y!4'7Il ,{!t;i~cIv11,+i i;Iai1t.~Il;ijl:Ei1 Rtl,'~t1'ifIL'~.~tJl1>L !irlfil,~rtl .1-n ti!rl 7r~'J: 'St{I 3~u r➢~,. ,fr3~.S111',) .'~'I,E!!.I YF~ 2'1'17:; I,il{f Ir A~~ 1 y9 •11,31; 1! [t~1rl'}['J'1 18.14 777 77 r~T t Combined bank deposits 1966 { $531344,267 1972 " l114;rSi,439 r 1967", '.r .,,"`t 58,32{',dl>C i973`.' 126,209,608 74t4l~ 19 4 J31,01B,t?GO { 1968 3 , 6; t q r .:d 1969 72,8.41 14 ~ 140.'1;1,,770 1970 93,54~,d 19 6 16118051962 1971 98,956!36, 19`!7 175,006,077 Two savings and loan associations hadC4mbined year-end deposits as rollows { + f ; i{ 525,331966 7,991; 1972 $53,692,053 1467 26,654,055, 1973, 63,584,046 1968 29,042,993: 1974 66,202,425 1969..+~ 32,371M0i 1975.69.310,548 1970 38,262,53,9; 1976 84,238,471 { 1971 . 40,441,640; 1971 e,, r E { 94,168,257 Recre$`tldn Sr('f fE~f3 f,j ]IEtI ta1,JS ~i'{ learby tittle Elm Reservoir, one of North Texas~ ' largest likes, is one o(Texas' most popular ra,reatign areas, The Garza Reservoir has a shore line of 183 miles located entirely in Denton County. In 1973, Garza Reservoir attracted over 3,000,01)0 visitors to its shores, The upper reaches of Garza- x ~ Little Elm are Only about 3 miles east of the Denton City Limits, while the dam is 15 miles from downtown 4 Denton. i Grapevine Reservoir, another large body of water created by the, U.S. Army Corps of Engineers, Is >r located in Denton and Tarrant Counties. The dam is 23 miles from Denton. Parks and recreational areas ahjund on the shores of both Garza and Grapevine reservoirs. The City of Denton has a 422-acre parksite on the Garza Reservoir, and this area is being fully developed at the present time. Boating, tubing, hunting,' swimming and all water sports are Abe favorite recreational pastimes at both reservoirs, which, because of this area's favorable climate, are in use the year n,und. I I i ,4 { i I i ;8.13 , APPENDIX C LAW O►1'IC[S WCALL.,PARKHURST HORTON 1100 MEACANTILC DANK OUILDINO MOpiT M mitAkk PAUL I MOMM4 DALLAS,TEXAS 75201 JOMM D. MCCALL 118*1.10421 MoMi r, 1.kW11 MILLAKO 1AKKMUKIT 11101.11101 11TCK Y. TANI MLA COOP 04110 0101 CLAKINCC M. CROW/ 11101.10111 KOT M 10146W A ICMAEO Ii. 1t NINA 6. CMAKM KO1OISM l y I i A:",111 I V9 -11 ✓ I ; h V t, W, 1 1 ' 1 . 1 . 1 )/,,-1 ;t l l l I j C•I l f'~'P I'1'i1 (THIS PAGE LEFT BLANK INTENTIQNALLY1 APPENDIX C I LAW OFFICES Ms CALL, PARKHURST SL HORTON 1400 MCRCANTILC 15ANA SUiLOINO 0409NY M. MCCALL ►AVLi MORT001 DALLAS,TEXAB 76801 1001000, MCCALLI1t11•H1ti 0t00tI1t t. LAW'S MILLARO ►IRhMU IUt 000/1/111 /1TIA M. TAUT MuCOOtel"A0-9501 CIAMINCt t. CHOW[ 11101.11111 NOT M►OINeeTt RICMARe C. ►OeteR e. CMA\li■ e0e0114 { /if i r a 1 I 4. 77 77 r, f d APPENDIX D f FORM OF LEGAL OPINION OF MESSRS. DFAWEV,' BALLANTINE, BUSHBY9 PALMER & WOOD (To be supplied) ~`!1;lV[tlfYi;t1 0".1 Wf 11111.11 to 'i'oiI; ai D-1 4 t I i (THIS PAGE LEFT BLANK IN 'I'.NTIONALLY) APPENDIX E CONFORMED COtV 1 e POWER SALES CON .TACT BETWEEN TEXAS MUNICIPAL POWEK '.:AGENCY AND CITY OF BRY.A►N, TEXAS f CITY OF DENTONj1 TEXAS r } + CITY OF GARLAND;txTBX~A3 CITY OF GREENVILLEpTEXASi , 11 _7 },~u , ,+IE~-.+~SI r!r.i; ii,7r11•,:nii{ }'i i', :,'r Dated: Scptcmbrr 1976 .fir.;[ ~i ~r TABLE OF CONTFF!VU Section 1: Term of Contract...............,.... Section 2 Definitions. 1 Section 3: Sale and Purchase of Power and Energy........... , , • , , , • , • , • • , , • • , , • • 3 Section 4: Performance of Certain Services . . • . 4 Section S: Delivery of P?wertarl frn5' y, , . , ..I.) ' i,. i , ! , r 5 Section 6: Annual System Budget , • , 5 Section 7; Rates and Charges. . , . , /..y' a;./' : } . . . . . 6 Section 8: Meter Readings and Payment of Bills......... • . . . • , • • , 7 Section 9: Meter TMing, 00' Bit*g? Adjusi'jfi f nt. 'e, f I , Al."',' c;.. ; ` , . 7 Seaton 10: Payments to Constitute Operating Fspenses of City System.... 7 Section 17: City Rate Covenant........... f.(V . . . . 7 Section 12: Covenants of the Agency . . . . . . 7 1 _ l i Section 13: Project Approw,4( ~hd~ Wts oC d(L-Y II i t I o when a Project Is not Approved . . . . • , 8 Section 14: Debt Service Gu'arAiA;:Opd(a'tidg` k(d r C l R) T1 V" Maintenance Expenses !o Section !S: Remedies in '~4 R' tay t~ ~'•i A51 A t, ) . t ] {;10 Section 16: lie-crtation of Agency...:... . • . . 12 Section '17, Payment EU Likil '1nd del1nAJeti'cjj:1,1Si f:). . 10l YJ L), 12 Section 18: Power times Contracts... , , . • 13 Section 19: Continuation of Services..... • • , , , , . , 13 Section 20: City Not to .581: its Electric S}'stem. , . . . . 13 Section 21: Assignment of Rights of a CSty. , • 13 Section 22: Dissolution of the Agency.. 13 Section 23: Force Majeure. , , 13 Section 24: Insurance. 14 Section 21: Reports.. 14 Section 26: Records and Accounts.. • , , . 14 Section 27; Access 14 Sectloit 28: Governmental Rates, Regulations and Laws . . . . . . : . 14 Section 29: Easements, . • , , • 15 Section 30: Cancellation of Prior Contract . . • 15 Section 31, Notices. . . . • • 15 Section 32: Severability. 15 Section 33: Contracts to be Separate...... . . , , 15 Exhibit A . 17 ScheduleB r;"aS..t...~.I,~.~:~~}•,.,I;ai~.l . . . . . , . . . , . 19 1?.2 r:, P,QWFlJ SAI.FS ~O+NTRACI . XA MUIV>~PIPA,r,r W SAGE a:.rr AND CICTY, QP BRYAN, TEXAS CITV OF I ENTON, TEXAS' CITY OF GARLAND, TEXAS CITY OF GREENVILLE, TEXAS This Gantract,,nQeS14 in ' to, as pf the Ist day of Seplflmber, 1976, by,4pd betw"n the Texas Municipal Power Agency, a municipal corporation and political subdivision of the State of Texai,' and the City of Bryan, the City of Denton,'the City of Garland, and the City of Greenville, Texas each of which' cities is, a tunicipal corporation of the State'of Tetras and a' home iule city (herein coliectiveiy called, "Cities" or Individually called "City") WITrt 3sh'4 }t r VltytittEAS; sac t~ya~s ~fetA'for an'{tronomr 1 11 1. it a1, reliable'source; of Pov+er'agd?ner to ruee4 p ,MM Ac'man of }fs c)rstom0rs' i~ id' h'a's dete~ iilnril to purchase such P4er ' 4~ erg"f'roc e AgetScy; av d $ . • , i =.5'VitaPpes, 4e;Agency pFoposes.tQ "struct oR,,"qui(e ejectrlc gcnCKpl ng P10nSb And:ttutsu scion I; ea -of ieivqutra ownenhlp,inteegsts,Oxrein,,and to purchase or,othe(wlse oMala Powee Sod, Wily for the purpm of supplying Power And Energy to..esob'City:and othsrs;.Aad, i is WHEREAS, each City desires to purchase, and the Agency desires to sell Power and Buerly on the tbi4iiii Yha toffeikI614 96 set(orih'J ,J19woIITvomFox, ip CPOslop, (auon rt th6,myWO, 44004ings; herein coWlaed~ he Agency eAAc~ Mty, agree as-(oQows f r:' +.✓;f' Seition It Tem of Coal d. This Contract shall become rive ythe, del ygry to the A (rey '6l' the ids' of ~tw+i~tlaejit "bdids `$ubJa~t !aklffbs pFovi Ira aons'. K and l' r f, tibia ntidct a1~7i it 'z?iri id eA'k€ fdr''a ri6d'di~ tiil~t< ~ 1 #j'af~+ 'fr ftt " tot 6F 8hk, ~u6ft ~ir~~ af[ { e ue~r~ ¢t t~se,~~~n~ shbil it~4e bean t~a(~ (bf ~r6~on to~'pi~c~ pr<yttieii~trhali`~'a°4_bfk~t thbdo~i;hct~ever isla~tr. „ r 1 . , ,17.ap ,-1 !7x111 z:}i y1 1O 1A9a1 ~).'3 f91 ~J"-rUf,1 J[i; YI I I )Si N:II['t, 1 ,.31i ~2 ~1 x:17. l~ i (f, ,I: 4iJ E Sctcilo~i 3p"~e~nitl~tt~''As J>rai'he~e~ti' 110-i,1;4 0.1 Lr,t It1,11 l:!lflhiu rrr YM ,(4,r 1. hi) ~Iwd4, ;I.~jf " §!;.r#f ~i;pEfW 444,45410 Ihf 01x4l~494J tvretilt >+l~tr essiop, 4573,yt♦apgendtd orsopme~tta t~erecofe1,64ih {81~alHlf•,t$4iA(.Ei4S6'175~,844,;11As atpe►x!i}t9rY ti►etegt (b) "Agency" shall mean the Tcxm Municipal Power Age&y as ereWed arid e%tAb-lashed (puesuant (p the Act b ►ro ordinan a .A ~t sr1:~r,t Y f r. ,t,ln 01100,41 01. gAYlrfP004q,,4f N ggfmEtcl,os sP. rw. ,,,l,r:(c)1AgntW $yett* CwOlihell nitild) wlih Ves*)to it CoitttdG~ YEAp;lffnd'ttS lhb'e>itdni'ttid? paid or to be paid from the proceeds of Bonds or other funds legally availab'x to the"A~elttt)+;'y!i + aid t`x ns4?,Pf S~tF„ R4pcy:4h4S a;f pfd 4r 1(tour(ed.c)~ting.:uch Coutr'M:YW, ar;4 at eibcable to }he, 5.~}.~t4~r. eiitli.At. i~ fig: i~a ppyirant,a4111Sypp~l'tKiag:itrta MFir►tcAarice ~.watfa .a t3.8 _Tn r the System, all costs, charges, and rkp~rse°s`of cplacefitenftl ii'd renewals of the System and all taxes, assessmcnu or other governmental ch;vged I4w(4lly ilgiposeu on Agency or on the revenues of V,e System or payments In lieu thga4 nd the de it or payment of any and all amounts which the Age& r may now and hereafter berom6 odh~'a1~d io d rt tn1to Ar Find or ~afy from revenues of the System, b) law, contract, or any Bend Resolution. fie' , (d) "Annual System Budget" shall'mcan,•withrretlec! tb"a Contract Year, the budget of the Agency prepared in accordance with, Sestioa r? S1 ereq~ f9r suc~, Contract Year or, In the case of an amended Annual System Budget, for the remainder of such bntrsct`Year. (e) "Approved Project" shall mean a Project which has been approved pursuant to Section 13 of this Contract. The term does`'n6t t nclude' Piojects 'whldf may be approved after the Agency is recreated pursuant to Section 16 of this co„tract. (t) Bonds" 601 me h ail bond3 ilrf' A by the Agency' pursuant 16 the 116nd Resolution'.' ' (g) "Bond Resolution shall ratan the resolution authorizing the Issuance of the !*Texas Municipal Power Agency Revenue Bonds, Series 1976,". and any; resolution subsequently adopted by the Agency which authorizes the issuance of Bonds, including refunding Bonds, on"a panty witte the said Series 1976 Bonds. Subject to the provisions of paragraphs (e) End (f) of Section 14, In either of the events that (1) a City disapproves a Projecl (pvrs4yt,to,Spction 13 hereof) and elects Option One or (1I) the Agency is recreated pursuant to gectton chereof and entities other than all of the Cities 4f B in1 De'1ton' Garla drand Greenville cpntratt with the ATenc tprovide moneys f " to '"^i l• 1 I J ~ ; ) WI .1 a the Pay~ eni y ohh a1~o f the'a enc~~ oblr~a~onls thereafter issuco sha~l'goiybe`o9ia parity with, the Series' 016 Bons, 86d. such'ob 194do ns, d any, shall not be deemed tc bave lien issued ptir pan[ to the Bond Resolution. (h)'1A"Contract,Year't.i,ihati than line 6stat y6ar'of-1he AgeneYas fyorhn tirhe to !63ic der`ediidid by %Ile Agency; pr6vld4 however; the first Codttact Wit of tht'Agcnty shall begin on the eCectivf date ttf' this Contract and shall ehd on'th"e last 40'61! the f►stal yeai'd the'Agihcy-i thin which this Con'trki becomes effective. together with Interest thereon, andred-m Sono premiums, Indebtedn,SF%.,as dr4W to 00 P,. )nd Resolution, p ms, it any. (J) "Debt Seft-6" pr,"Debt,S Nke'Requirefnents"'shall 6WA, with respect W na pet,od, the net aggregate of the amounts required tci be paid during said period on xtty 'Debts'outstahdin j`a! ibei sama shall become due. i} /2 i„ } 1~ u,( !}~):I~1 1 .,?ri t it rll'. } X i 71}, 1~1 1~ l:~t ~ AEI}l. t, ) `r~eye)oPment,t;ro ~t •:f al~ ilteait 9rty o'?p.~ of4 t 4 lawn M rc a! re ement ' PIS s. °F A~ Iloins 4 Jt'4 j ~cyct ge~ gat f°eti! Y a ge ig P' 41 9l v W by 4h4 _p9pyf apd which C r r , z7 r7 , ~~,Ff J ti ! ! t i, _ 4 l r , e! f i read Q,,.,Sfc r.n~ p ;ar9 r J84 Qg :fie e~ f flit)! , ,,p ' e1 3 ~o~elopmen];a'f work to detbr'mf~te "W~ether' ady w~rl< sliAqq~f p!!'~~i~ ~ of )f ~ legal, and Anarcial ct dies in connection with the 'ta`nrin'y'de ~ (31A '4`f,.it.Vnff4i°ii~. P g, opment or uti nation o~ (+dsver resources, of {iii) any purpose far which proceeds of Bonds be exPe4f,ed u,4f~ , the F, , ~ 1, Fxpt a k. ~ Project. The Agency may issue Bonds (in a separate: series or corn ned with Bons bciaiIssued for bther'pur~fthf to ptbVtdc'itt'tids'i'of k'tkwitoairient Pi'o cct'ilhoAr'bbrripl~aticZawit>a t~it'~SrQV1"sioni f6r the isaUett ~bf %!#dtMs as Itet'for~fY'In fhb BBtild' K'doltltib , bUt tjto'-`afV~1)bt 'thd Ctr~ies~ pntStj'A`ntt tof Section 13 hereof, shall not be required, ,,'.,;i(I)iMnergy'lshall ratan kitowau-hours (kwh)1(";jc;r,v1,' ,,.=.,t ,1} r,,..>rri ['f if, n(t6ityt!s11net 51f ~ ~ Lrno,"}~~~ff,eea hbF! 1n plus I' Ianl ~ ii'. '.d} 1 Chlj "fQe2' igfteeh+ lyor 1 o'ada shafl''theil a ergy recelvei from 1,9140;;*lul Xn,5toy" (WiYAred IP, otk"" At As points 61(liklivay dudn(( the Wod antler 4051,d~f4~qMtl It "t'4111{.!1 (!t) "Operating ind Malntb4hca Ex*h ea" lhell rn'e ri all`aiipehie ltkurteb IA the to ta[~it')Irid' . btalnttaslr 'ot tht+ Syit(e6t''aAC`itre'JI'getl6y1'whkh'at'o'~fr6(se~fyi'kcouiilid, t'ou'ch''°pt se dn~ i. E:4 ti, generally accepted accounting principles. Such ter=n' doer not include depreciation of obsolescence chargoi'of reserves therefor, interest charges and charges for the payment of principal, of amortization, of i!lt atbr other i4debted6m of the A&4icy. ) ! Points of fkliveiry" steal' mcan'the poiAts' bn the System of, or `available to the Agency, as set foil 1n Fxhihit A, as amended from lime to'titt s by the Agency -Snd the Cily toncenttW, at Which made available io a filly pursuant to this Contract•' pgwer;p a Lnergy a1 , rp) "Tower',' shall mean kilowatts (kw), (q) "Project" shall mean one or more of the following; (1) any prnwer generating facUity (or igt~,pst therein) to be constructed or acquired by the Agency as well as fu,.:.nerefof and any trans- mission facility rcquirtd to corm,tct or lnterccnnec+ "su,:h gencialing facility with a' City or others, or {i!) any addition or Improvement to a power generatf.ig facility which is then owned, in whole or in part, by the Agency, or (III) any contact right to purchase or receive a power supply or transmission { capacity, (a) by the Inaking of a prepayment of capital costs which are associated with the supply or capacity so purchased, or (b) the execution of a take or pay contract hayIng duration cS mire that. 10 years; including any renewals thereof, or (c) the execution of a contract to purchase power Ore:gy 1 (eithei or_bath) on an all, requirements, basis. The term does not Include any lacifity finanA with the proceeds of,*clal Contract Obligations as permitted under and defined in,tfic from Reso)ution. (r) "Rated Capacity" shall mean the maximum load expreksed in net kilowatts (kw) that a generating so,irce (as identified In the dclinilion of Project) is capable of supplying urAtr prid operating rdddittobi ,hall rilean the Agency's interest in all properties (owne,Jf or operated by Qr 0,6 behalf a[ the q$e Y) wttlch are fjnanvo, .ln 14vhoEe 4r Ip Pat?, throp8~.thc l artCf,pf obligations ~y too Age11cY f'>f• proyf¢ Pr9*14 Sygtpm A;Y¢lopm9J gid,Feli?tjj t DS!~~<<PS r,fS'~,~`e1~Rmepl RSQj4, .Prja4,jo )hf.,ll(ne, gnp.t?f,'She1C~~~dEsapPK4v. s pro) "t Nn eF uhf p(oyi~la,te,9~,Secpo "0 r~c>• ,QptiQn944ndef pAragra,~fl) VP4 !3he tee dR0 IPq4d,,¢PY cgntrfc proxloing s4rvjcgs or,_eowWAI arxf ~inerBYr Fi;f+er.or l~o0. Th4,l°j4ial,Syalem ,ip,.~(el;t 9l~ +!h SYVeM q N termE .90t,il~lYiff.llle,Agegxf,i141mcit;Nt',in~ t cillty financ ~ i, of proceeds of (i) Special Contract Obligations Issued by ffiCAgtr)Cy„as Pergtifted urt~ier l9d, deigpt In the Bond Resolution or (ii) bonds issued to finance ant Projec( whic,+s is not approvuf by all of eit 'Cities if a Cliy de Citits Which' bistfppe6ve 'a` Prhjett'elecf` O~tioii On! 'uHdcf <rctioh 13. ft~ "ISYstetit T~evejoprt~a.t,andt,`ftfliat~y i'xptgditufes; ~Ieirr ,~pseE efpp~ndi~v~4sr w c!~ ,t se} Agency determines, u) derpruden[LUlrty praettctes; sfiotcl be`exp,n edor aver period nl flare ,Of (I) transmission and ro idled facilities to increase the reliability of the delivery of Power and Energy by the Agency or (ii) tl,e exploration for, development of•orrifte lic4ullsIOA of-it prder (u,pSovitle,fdel;(9r,.ge{terating;,facjliliea yrfaich,afq ftot,,theft:owpedEOr,,the;;ptpCgss of gonsGUrtlQn EPr,andi9n,)tehallf of the, r48gllcYot4r1.(i1t),{fQPI[saffpj Smepts,_wa jcatjops,.tQ,ap e.)Ohg,gentrpt,ing,fsgi)itY, (9)`:nfsl IP.:whoJ;,Pr;;ln park by ~1tC 4gS1tsY, pr !+4r13r~wn1trustEOp,kY, h) 00, rlre„04riO Eto,inclcpfP Av, f #1Vs.,7ap*i1Y€,9f rtlsch, gS+wntins fsu4f ty, fiwhioppo, ifpf.f* which are to be pijd,(rR?ls-ihS pfSlc6Rds,J4 , 4~0(W .qf iA~vtoi ,>;h ii rbt►;c9n4~rtdip,ilAB~f?pSP~ (u) iUnilorrP System of Accogqn~ts'"jappd ! otiEer ac~ountin~ methods and,terminol~ contained ctfi' reS`erred to This $ecGon "ur eYsetvltere' id t I c &a( t rt~iafis'~a~r"c8i4ntir3 r' ci lea, m th l% kind terminology followed and construed, as nearly as practicable, in conformity I'tw"the,(JtliloiMlIeystem 9f A,cc?ouots for,Qass A and Class R Putrlic'Utilities and Utensets acid accounting rules add regulations thereune ; prescribed by the Federal Power Commission for privately owned power companWit4hich are subject to its jurisdiction and engaged in bustnexit comparable to the business c,( tltf Agency, as i7tyCrtdel frA IIrNe to kir$a, 07 such e3h'fY`l~slertti'~'l'tHay be' ec4dwed'tiy aii~ rte ifAE~lly ~~ncy k { }}'1r1'',I J ~~".J "i ~ Iii r +}w' l.~ i ~.ri,tai.; 7 'i fti Y ~ 1E t,!e• 11Y<S~ ~ t'1 'f 1 t. 1.4 Soelloa 31158Ia Wo Pdmbm of Power and Eatrp$ VI (a) Each City during r,he time this Section is Lyptlcabld ehallt t" 'i r ,,,It (1) Purchase and rccll;f frpp' ~f~ Agency ill Pp)wcr. and ,Et1eftty,Whifh, Ij, fhf ll,require for the operation of its electric system irt,c,xcess of the amount* mount (I~ supplied by any gentratiott and FMS dd. '-'R.~!Y•Y~ 3T";'~. ~'~{t py.,t nalx ~Ii Zn~, J' a } ~Y 9~ C'YOe v; ^TT y,4,j~ v f transmisslon facilities owned by it on the effective date of this Contract, Including generat;ng.t}rt tfihsntlsslon facilities tinder construction on sueb date, and ImprovfraeR-'e.Gr a><lan~~gge,oft getterrltofI t/cilittet which Increase the Rated Capacity of same so Ioag SA :04 kKr4*M 4gktd*y pol t4 ,4 4 twcS4a Yea oat[~Ft Xr r! doCs.4at,oxcefid 1p9~ q( the 'I's Rated ~'npfcItyy at the beglt<n~rt9 14 Il ..,-Of Aufh,P,~flf+d, po, Od.t6 Pitlei;and the Agency. spay, Ip ~''(tt~n}h•wat~e such iU tirftiir' abd 1 (il) supplied from any generadP4 y Qrirriarily fe;le41rarl ant1 the , ; ~ rucii~n o 161y one of which Is Incidental to the disposal of .olld waste that Is htreaftar conttrved `ard owned 6y one or more of the Cities, together with any transmission facilities that a'rt+ rlecessilly'tor th'e ffansmial,lon of Plower and Energy therefrom) and, (2) Blnds Ijoelf tq pay for all Power and t?g)'rgyArchase4 or otherwise acquired 6y it from p The hsency pursuant tq this SecOon said payment to be m.-de at the rates ano charges,established .pptYUaat,tp rS,~4~gn,1 of shls ion{rect. „ ~ ~ ; `tY,e' ('~egoingl'¢ #,63s16ns `tit lh osnbsectloi (a) Chill haVe''hd ipplichtioli 16'thi! pUtMM or 1,, e' change' pf Pd'1Ve't or t?n.r y fi)' oh an'erriew'geney, miintenance, or stand-by basis br (11) on the b01 of ettihbrrilC dispaj.h't>Klween the' Cities ahd Bratbs Electric Potter Ccbperative, ihC Mrrr♦ Qr~ Anij on "'Of ritbrd'ot luth entitles or (111) under't}h! exis'lki pooling'agriemeht'be= Win thl Cidea r nd' 8AUos and future 'pooling agreements among' the ft tegoing artd otherst a110 or a rty'Combinstloh thereof, and the Agency. : ~,1,1~1 li j'r~1i1 a ' . i I {y .,1 l I C 1! 1 (b) 1n the event that the Agency Is not able to supply the Power and gnergy required or, to quested under Its power sales contracts, it shall allocate, its available Power and Energy vr Jonti~ly klp6ng Ac citici pro,,Uta In ki6idake"with thelr respective Net Energy'for Load'duf fng the 66disppnding' mbath"of the l 4cedingl d6niract Year uniess a kJvernrhental ageni:y Iires"i Vifferent llocitlon arid' (ti) tither er pUr`bhasers it inay ' by contract. The 4 ' m shall d 1 1 sc ale tff'bd plmaded b ' g y ivote' ti bfe•t ido i of th6 i6hu4lt1A.'by' pti bthiliMse 66,Nwet ohd EhCii ' 'tcy reed tb Mdd ~b'lrtYMuir'd}nent~"b'f~'¢dsveYliples"Cbnt~abti:'~i1'ttnglEhb'~trt~d the'A'gcney~is un'abta'td"idp~¢Iy ~'atVe'w~ acrd Bhee4y'iegaired tir'requesttd`under 14 ~owbe tdles t'otstrdcts,''to tha0n'all6ctti6h'of P6wat;andf r is tribd : th6biith Vrihill'beft*imltted (db'r(ag''siich'plfridtl)i'tb ¢iltcMW 6n*iucli arft6"es of 4~bOr rhd Ei 11f ii ae'!i}e`tibE tuiiptted by tha ilgt'aey 116 t 1YI I'vlt 1-1 i; Ilr llof ow. ✓J !1>1il) (1,7Ur 1 I; rsnc{ 1 P' fi • ~I~'1~ 1, i .nli )f)I ilf l W,Tbo, PM.,41514414, 1*4 *00P 00pt apply 1.19 s;4yl City, 919m, ~roiafle; 14P,egOOvt,dOIO fA"Ity, isa roves a Pr~oect u er the provlslon of ton 13 `i1) elects tl Onei n sa11 the tl' ` l ¢l~Yt1~ Se(ibn'' a` fly E' a 'Cit'y ilki, `'disAppiaet' frb~t eefilon 'Itivp. j U 411 ,1 nl lwr 1 '.,l iii , •~n..ltr i 1.1t 1.rt1.f f(i1'.J lLih fvj TJ'!)17~t il!I, I /li 1 i'1 :!!Y✓!.,h 'lit) 1'c,~~7~I ~i'IIII:i .oflf 'f~l,y l,ni r.) ,fl •t ~.A`1 I,1 I".~~. r 1.'._II:411 E'1 r~Il'ri~oa:6i ~'ei~Artbanta ~.~~~.Pi~~'3't:>>I ~ 'll,✓ ,l'1~ tY 1!11 t 'i_l' C. itt J Jr'ff"1';~~~ :111 t" "(a)' Ia slddMMI tp thill' delivi'ry'(* PbWti: end Ebftgy "Ild ihdit And ilt 'Orfblmg*d oe ell'" Ind kdW. V kicldeht therdtd,14he'Alt neylogrtxl'that; lo'lir!'e'xtet4~' riot Od&rlfed'rsdA(Ild' dt"at''a' ctsniililererieetldf atiy'othet t ecdar & thli 6iltract:'It, tv1ll elthif ¢etforns dr''caVO1tb' be" derfol•htld; in'{ritlpru~feht' attd bEsineminAl)ltiianner; tht folktwing lehiki' aSficeihing'lhb'lia{t!t'felaled~~ctf~ittel' dtihe'+Ar,'th'eCidetand'MherS, 64il''M't+KNduf c'omMnetlohr d',nch"bdrita; P~ I'1 J,l: f~,~frJ 1 r ..!i' 1 l1 lilfJl !1 ,tl~~i ~I t' L I'li1 j1 fj m'(ptehensEv~ grinlt4 I'qrl 1sown4j an✓1 d) osr1 goad It I}ranert~lsa~n tlierpo to r atwa [a it) .yyw 1 rIJF n~'~ '111 e: I 'I' i! IP" 1 r i J I f .I,'1)r{ III4#' °~J9? f1 1! eY f; ~fi if l)!II 7 fit , Il 1t. 111 N..'1 i ,'i;i. 1[ rl', I: 11lt lit tlit 1, I,N1111 ! J'S~il'H!'ri1 t, it „)start,,{Z) undcrtyt;e'or tootdinsitelardlrhbnltor'ihe'd&!jr;ltbnsttWIon Ai;aibocre11tir11of~)NM f1P;f fIP 411`t, i li'h+,'j ll'irw,P tkiiI, ofeI 1'1) frlil'r!"I it, I Plt t' I'1t''1I ',f11 r'1 111), IAAIll,, t-alt q is~ 11 (T;1ff!: Ili) cfll; 1/) 'Kill u,'l~:!t' 11li: rl 111 , i) tl~l• ('.'!'r l'!If't f: l~l'Ill.lf ',•IIS It, r , f ~ Q. .1~RFI + E~ tl fsr)~ ;4r.~RoQFI~jn#e,.N#d PtP,414r,,t~h,q Sic . "q ¢1spAkhing: 9 '4M,FR ind try the Sys{'ent and the systems of the Cities and other entitles (to the extent permitted by contract) to which such systems are Intet+cortnldtad,)purtbdnt to+tcubt~e}a d?agrt<errtatl(~ be- twe"(hl.Citlei,the Agency and anyQlWeldllp,Ir'vi; %;7'ill 1',11-t~1',I(1!:IfIgIll, I'i0il,fIl (I;) ? ilr~l f 1 JYl,llnU9 t• , (4)' prUv>'de' tfcEBh'dEi~,gt''ahcl' Nhlsi a11d'c064 se6(Qltto' i'tid If 1t) I~}Il l: f7'/llbl'11",)'1 '~Itl. 't!t IY;It'lJt'l~ 1) If1U1I;J1G Odl )'.1 /rj,Y9 Ili 11(')1c({ '1())'X i) PU 14 i"1l1,.!,'10 '311) -t 7 7- '9 `a Cit;; from time !o t(m!, ahail determine to CS) such other scrvices'as the Agency an i bp'tlhpt-~fHaleandneCII (b) City hereby binds Itself to pay for iI cost of the services that are to be provided by the A n' I,i'suaht to Subsectjoi.'(a)' o, this' Section'4,' such paynti:ht tb bE madf at the rittes a'nd charges j~lhdursv`ailt to Sktiori 7`rif'thli COS1rr8cl. Section St Delivery of Power and Energy. (a) t The Power,. and Energy; (o, bn (urnishe4 under, lh)a, Contract shp(l, be alternating eWrrent, sixty,(6Q) hertz, three-phase, subiect.to condillons of 4eiiv4ry and me urr~ept u hereinafter provided, (b) The Points of Delivery, delivery voltage and other conditions of service shall be In accordance with the service specifications set forth In Exhibit A eftaa:ed to this Cowed, as amended by the Agency end the concerned City from tim- to time, I'li I I'M i,,.;1,,; (c) nd City shall,make and pay for all connections between its facilities and tho System owned by or available to the Agency at the Points of Delivery. The City shall install, own and!tualntala any necessary substation equipment at the Points of Delivery from the System of or available to the Agency and shall Install, owrn and maintain switching and protective equlphtent of odeguate'dtsign Bird sufficient 1 AcIty beyond such Points of Delivery to enable the City, to take and use the Power and Energy ~;~p11116AM"this Ccn1IAk*l(hclUt h'afarl~'tb`tht Sysrbin. Ti 'the'e'vtht that thb Pbines,& Delivery set forth in Exhibit Aare 6&'66 th'e City's'efectirlc'system;'lhE Cit~lhall'arr rI fdo irlfighisssibn of Pyuer anQ Prier told under this Conlrect to III system, in5ludia,t the lnstiallatlon aril l, of . t tit:.. I', s any ?aci~i! oil q~Qu re for to inIeceitvp s,ic~, po~lr ahd Energy Irit~d Its s~ fern,. ` . i:) 1F~. 1.) t , 1 E>ycepl, as other ise agreed} mett{in~ 4goip{n~ent shall be furrhphe~ ins}1 1 frillinlained b t}~ eri 't'each 1'otryt p~ 6try to the Cily a! IN lo* vo119je sj~ of'the irana}ot n)ag fgwprr4nf ~i ~1 9 7 i, r 1 1 1 C' U 1 r,,r r U , f, it " 1 1 preni o{s a~iust~t is ~qr low v~i~ta a sl y or,jei~o~e fne~~ri"A s{i41 , a s spFC~t~ ed inat z I r fh rer,d rra, r, r r, ~e„ I' a ~xIbi of !s o t'triaBr~y the pres /f,t 'Jt,p lli '{t~l~rt _J d> 5p6! '~rii 1~1 Ali ~llli-'4Ett N• Vr ,'n 7{.i~ r t t ,r ,'i I'.S1 fE t Jt'l Jr' f} , r -i/ t ~iectfeYtt6tr'AeMfai S~t~m•ard~t, ,~r~'l,,''~, a z ,l~l, t t ~i,,!, ~,r,:.~r jai rl.L ~ r i •,i , s!!1<I { !rl i (i t. 1 i Y'.1 li : r I, I,I I I I'll! r r , rll'-.~ , ['i; J lilt t Vi t.lr J i, 'J(~i ,li tY. tit $Yiie By5!ir<tJl4 filRs y ~>i Be, s a pre w a or ~ ,to e , t >a . lR1.•~fP 4~ Bch Cpritrapre lpafwn,~R l P E r r c b n n !f' l 'f h I, ft xtee:r. 'A°n . , t f { ve c, J yf ff?liQt~to Mfr Pt~Sfl,tl4 I P~I~I<4t ors ftil44$it lqoq, and applica6Sc to such C~ontryc ; Wf , /,1py4l, , I A:'~ tt account forecasts, whirh shall ~e fu'r'nished by eac tty to the gtncy at feast one hurldrt twor!ty (12,0) days prior to, tho btgitiningvf iiICgntract Year, p(,thA monthly peak Itwerignd Energy tS44IItSAlOlnt3.~4[i>eli{t~d_~tOrkOr9b}StilttdCrQQlt~lhb,!ABertey',duririg sitch.';~~sck~yPAr,lr.{, III ; I i I') 4~r r 1,tll jk , i1ny t,,rrs ~ir~ A1 v+! t 'Jn 1,» [vitl') in r+r 1r', , !i1 r. 1tr i t1 m n o t e CS 'f~ t o e c not ~ ;a ~ thlriX No days~ 4p,ir,., x! n Irr Q' pronning of sucW~drifral ear, shelf adopt an Annun gystim ucge,t cpr s}~cntraet Year and the rates and charges for Power and Energy to be Pornlshed and the servAs to be prmed P, *11 t 4Q 9 ~f to d d t nnd charges c e Y Or l u ">e>E,RI,>;4,if~!lOPk~,~Y.t 111i0i►4 RFS' ,fA Year rfr ~n9~i3 5}' j F to de ivered o the Cities. rovided, however, the Annual System Bu¢gel (pri,t Off4, r . shaft be prepared, considered, adopted and delivered In the manner which the Agenev deems best. 9l1t 11• `'rt Ilt li:r!', nil 'f t tij{.P t I ,Ittt1!' " i v;~.+ illl!I to t 'JIVj ~ lhe, tl„17V VI t ~ ) 11Xf.cf1 ,!fiet in F any, t~frlp sr ~t~C seer te}Piign~l til St ~ fl f t.1 S { r,rf a , , 'r , o' ,~~h1R' Cats 4 44 ~l~' s, ec(fp~ ~4 of lsi,y ti (fir r,t Q i e!! a t~E#' t fiilt~lt tsbiq n1~P4 $ f{?'e bnYtitoc~e " ntFtF~ YF Marl ~ete~I l4Fi $4c ,4''nl'~,Y~i~l, J'fN Kett r ,1 t,rrr. J,, n , i. „ , c o! I'¢ i41n,.! n91.„ ~Yt tQOtt 040 or {Muc;e} f rS 14) } I!~r!!t1t tam w ~l R4 Srea 5r . ,f . A ! r sr r , aaet~.Qr;?°ut~4 4"'Q11°l~ Pr(I ~",?F~' (h9 ~e=;fy F Pcf.~so'Sa,kYfl,"54~ such %nfVt Year or any part thereof s greater or ass t an the emoun 6Y~ower an ergy w h the E•1 , y P". 7777 , ~ Agtncv. ~yrm~ttyi ai the.tlme Of adoption of, the Annual SY~tem during such Contract Year, then the Agency may Prepare an amended amended Annurl Bud 5 s! YC4 Annual jd Sys,hgvetem,b¢ptt delivered Y em budget shell be timely adopted b the Alen fydgcf. The ri „ the by cY and transmllted to the Cities (d) in the evens a Oudgeq ror,,lfte tnp ip f. f has gal been ; , opted 0, P1 ~befor4 tint day of the Contract Year, the total amour bI gc cdafar the ^ be the lolsi amount of the temporary budget too such purposes for the , T ear t 1 temlbrery budget shat) be effective only until t (uch O tune as a the ensuMuining g, ContrCpnt''act Year, he and Cpproved, permanent budget has been finally adopted The chief adinlnistr$tive o9ieer'd the'Agency shall be responsible for tht'allochliln for expenditure of the tole! antoi,>St of the tetnpora'ry birdjet until 'N Ormantht~budge( is adopted'itnd h'ototfj $tclioa 78 Rates and C hargesr (a), The rates and charges of the Agency to the Cities for Power and p supplied shall be eer : gy and for services 9t story, and r , t~~, ~tt13( and ceasonagle, end be b or pSOvidtng the,,seivice ,witr,.fcrp, c to. , upon`th he t'pst of provliding Jh9 Power 44A,>~uer y r. relo or: Cha:gt is bpsod an fg) 'ad t9' ue(e 9 d tat;er 3 1c1nS Into cprjs(deratlon: rbt eceived) In eiech Co ether ear mot2:y$ revery a'njl~ Iq ntract Yo' a ' P Y o'r make' p~ovislon for pay '~n'i1 M, , !(?~t { When E (isr ing u4 Sysfern hedtify' fj; ~t ft ' fir" of btr ctQr pFdp Sa In ty4ablfab A e new t ~ 1 y h ly writ In no ice't•a / , 1.:, , , „ It hargel as "dfcrmfn 'u~ er OWer'a'RU tn V` 1 i f, 7't,. .,f[t ~f0~oses f,Q~.~6~~~~15~ ai CW~a~ r4i ~ rajaq fdr than 120 days fro( nLAma 1 ng of the notice !o each City. a1i su Except iie sean (orth sue "t; ` wltlc~r 's aiR rnot on a Eh t¢ as provided In paragraph (c) hereof rt Is r 'to + r if the Agency shall be eifectivt mated slmujtane~trsfy) . _ no charge or adjustment in any rate or charge made by an objecilop to such adjustmenttlnaa ra~ and charstlbdo austro , yy~iec.Pl++.iiy ggYeROIn&rbody,;enters oe fi.ed aith Gee chic( ad infslrativt 6Mdbt bathe' 'Agtti!ej6'rd(yy~of`stSC6`te5ot~tldninande Ina? th'att 30 dar etftctl~Ie'`date of 1r0 p~8sed" ' tb'F d t~ tlbw ratt cl~ial e,11 ~Ver'i( sti esRy ' a' EeE' 1, a oF +jr'a Jtl d lU 6l iat6 n o' ~o!f ~hhFge;tlib' MFctIVd~h~ `d06 ' iiih<"Ihb chrgd~ Lt 'n')MedY 10 t P ~ 'ndih , dhe t~'so tKd die u9„r~ • , r,: ~ , E f ,,bb(ti iji the foivl"n will bb (I)',e.`Cidta+' trlay+ jtifht~y , ttleEN -an' independent, lionsuh6nl got 'eonsultahll fo' ~rlpard a rate ev+ltration' and tchedule of mqde w, n 3Q calendarP~ gjed'reta'1r►d dtatgea,r'tleietifil Ig P~Qqfbt ltoi~`'o I ys,,of tFtie 6~in~ of en objection I*ovldcd It"kh joint " ;lit ih~eg 00", iG~YI'lridepe`ndEhf Sarr>ep+t ~il'`slie f be ~t fy by thr assg~e of a t i F,fl' f r, r ~i, 1• I c 1„ I,. °'In r;j f f~o cAy r~Clcrta t .l ! f l S l+ r' t f i S I r7v+,r.~ f, , , rephtl .r Y r1 kr;Hi ! i,h'i` (2)tp the btl the lrf9~~ ' f f , I,, , E ,1 1Y City t'tit eortsfder tlbe' brin f t , ~ hdc~flt tbtisitftatlfirhalf be Ybbtnl f 1 f t r tfEd"t4 ethe' A jenLj Mdd' tit ',rf I~~ E ~ 1t ~f he IndepFndent CO snltant Is approve t H !t i,, r ~'~Nd t e' ies`ihb`'ell''1~'eecjlJe''a' d by ri• Agli 1#1'tio t ltkAjtl ( r s' ofJfe"~~# q artl Igovtrnln iiiSi"' u ,lea t the r'#rittpfo 'ite~bYf b~fliotYn~'d~~t a p~oUd ot''k~i it ent re'acylt ts~n't~ the a i bect6 ha' t iYi ihe ' ft tnj cbnaUi~e'dt tfi' ,.Y rt hfa'ahd ( A er~h CY3 ~t ~bJ)eved.~ B enlydfci4 at~fA~ trio d'thvl~ ' J, ~I IJ ,t -~;foi ~i>>n 1 r r ,it„9p~illallbh to Ih hdt era dn~~ ~~ek t¢cept that Ih+ ~3}e4' i YJ. 0, i or f.~ e r o A rt (e) 77 -IMW71-- Thil Board of Diroctors of the Agency'- my thange of adjust any rate or charge for power and Energy or for servi ►s.tupplied by it to a City] .if such Board determines tbg, (1) on lmcrgency'ealsts and (ii); tht tmergency adjustment meets the efiler'ra establ shod In paragtr►pb ;(a) of this Section, -The;eradrgencyindjustrnrnt shall be effective for a' period of 1$0 day#,(unless the notice horn the Agency specifies a lesser period) and shall b ~ effective 30 dayr, after the mailing of 66ttee '16 the Clttei (s1 'of Which notldes 'shah be 'mt jlbd `slM,t,Jtancodsly). 4sa, r4et4ss Section 9: blefer Rcadingr and Payment of Bills. The Agency shall read meters of to be read and bill the City for Power and Energy furnished under this Contract at monthly tntervah. It shall also bill each 'aty' monthly for services rendered pursuant to Section 4 of+iW Contract: Sgclloq 91 _ ~e~ r TeSlln pad,~diin d~4kf~Inl, thg,4gency ~ha11 ~•st~nd cial:bata {hat}ers pi t) I. r I , i a I!r L U• r l I. l~r~lve el/a47~sqI•, mtlets (Q ICSSE ~~dr fa~! ir~l~d4YyC°[~AI!rt~Rq;wit accpr?lc gt~jl .5dt of ~inO Wryl (41s r.r„ ! lNL r,, i r • 1 1 months, br such other intervals ~s.tbe }parties agree he i!$en~y~ah 1 g11fo rriakeaQr ca4serfa,~ mace special meter tests at any time at A C:ty's request. The costs of a1~ tests sh'ati~ ~c borne 4:'y the Agency, provided, however, that it any special meter test made at a City's request shall disclose that the meters nre recording accurately, the requesting City shall reimburso the Agency for the cost of such test. Mrtcrs t4glslettd not mbre tha&`'iS of `I °!a AM-d or belblv'nordial shall be deerhed to bo aeturate. The reading+ n any peter yvhich shal; hpv bcyp disclosed by tysf So be inectprate sh it bf cor- ttcd.ffor~j,k>o bcginr)#ng i4f F;mpn},Y L tlig~od lmmctliatgly tpre~edjng tn4 ~1 t dur,1 ,41o t e;lgts Fjer made i} accprdagce with' the pc,4c~ntage of,Inac5u/acy fo4,Qd. by kus tes,t# provided, that no coclectlop jQ be frt dS„fgrJ$ lo $cr~liod ~glcsj 0' Ag rl` and „City ir♦voI ¢~i Energy ds,' , 4d d4R n: , suc I. :nuiually,8fr a hereto.,'$h.pWd,pn.y me er.!Ai, t yt' ter 66 , Powq a over pgtios{ f 1 , 9j °r:. ,vjtal~ ~fqX bill n 14 Pt' awl host F" ya the A4c Y ~4~ba Rf , I! a~ ,an 401 , I h ipfprmktigar~Ye ~?~1S1, he Asgcy,;t~ Y yy aA~ng or tf~, sa,thaj,th,G,41typ.tSFf4 ent4tiv~ Spey,sS4(„at.sU0,mem the time of'any meter tz *-PT reading or test. Jr111 1. ! r.l 11' .r ! + a ,1 rJ!r I (f71 SrotY ~o 'lsa)nt~Ejrta fo Constilafe atld4 1~t~~sea of Ctir fi~sterh. Ftac4r C`jty d obllg~t~gn t I I r 1 rl r s r a! 1 fir 1 ri i t M)kc th' pp ymcntj uA~c this Zrohlr ct Nit { corisfiiul0 9n` ApuI efcpdiis oC i tl&tric 'sy~tr Eac City h~ll ~t l6und Ad ' ya~ble''so1'cl~l i6A Ike' laveittie's%T, nd rece 's' sch i )eclc `sy`sfell nl 1 t rt ! t. }}+s J y~' ~ bbl; a d`d make ryc~i a nferSts tf d 0 atl d 6tr Mae tcc' Aytn,,f , nl,l,rf5bcirnA fd pf t, I I I f!1':q (4 rl J rr 'dyi»J ,::fl ; t 1 'at%'ect shad be nctdiidi'tJonaj i'.1~rY ~ ^I 1!,'i ~ t. !J 17. ~i s1; jr. 1'. viJ~a,l :1 i•.,, L~l:~. ~JI ~+'r J. '`.;t fa. ~3't !1.'•i' {1. :e,tt r, ~'1't;, (l~~i.~t,' i {.,t 0~ aini in and lie f raga t}p~ c~rarges Sfrtlon 11: C11ltrle Cosen!n+ Efch Cit all establish n i 1!111^^,r f ♦ irl +•t ;11.1) It, 1 1 fL'ri rfN N dd t IT" tiiC e~cctrie t;Me bt its elFF, iple'cytf m w fc s off plddd~e~ reYeggea aYel~ su tele t, i4$ethe r, 7t e,"~ i r ! r 1 !f ti+ till )F~~ Ike 1 r. ,.rt r i3 fl ! p, watt] other Jcvcn66 aiva<'fit a lo~uc ctec~ is s sir aljd avalfabtG e~~cCr(c tyt s ~esglyes to enab~e.It r }r r f ~r II'S'. t 11 If r r rt J I,~II t fd y5a}~ t`o,& Agency, ~'eit riue, fh11 mqun s a~ a $ such t r u>; ,fir this P,ntrad, Uction .121 CovenOls of The Agtrscyi,wl rA, t., t rJs . ! ii;, r.r (a) 'After 1140,ati'ifyidg'the Potve!`nd"d L~ii.`r~y re#icmdnts of Ai atidi;,'tis'siich'requircd:ents ale+"t'sthGllsh~d`f?o'>Si'`llnie jtr iliitE; aF~dt'fh~ ~cgtaitetrrdn(i 6f dthi:t'ovDe° ~Ureh`A4; th+ SAgCncy`.tht !'3'6'''°~~`'~`°''t";tifhsi',rid'a1~`3~1'pit,sP`bvter''nHd~pF.~~k~g'y"'~Saitab~clfif4h the t Syste' d'ol' which 'tbi4ASfri6J' h"b,,,(ga1sd 1Y Cd itr'kdi''ld 'purch'ase'''$t' b~hd~w~ifZ' A ulid, Alad which is in excess of the requirements of all Cities and '61hE[ pblar?t' Odrehis n$1 U0d,tlie't6dkt economIc&4Y advantaged s terms and r;onelitionis.obtaipble, to ie extent that It may le ally Po . rr,ik. J'O prt!~I'111~Iit. "'J. 1. 'It~r S[I'i if" !I'. t ! •',:blr,rr!.':.!, +f,) 5f 1 r (.4): The 'AgAncy;shaU1,)F:, o m"able dtlladnca to.o-o-•ldo a constant and unlaterrupttd'tsupply of Powor,ando,Energy,hereunder, It the.sunply of Power and laner$y shs l fail, or ba Interrupted, tx become. defective by'reason of force majeure. as hereinafter pruvir'sd; the Agency,ball:not be liable !therefdr or for damages caused ftreby , - ! li9 Y i r';i L:..,1 C i rP •i. .,4j,u .:r r a . rid 'r . yr Tile Agency shall diligently enforce and take ill reasonable steps, actlons and proceedings necessary for the enforcement of, all wrmt,r covenants and provisions of any powct, safes comraees, rl'be lgeocy shall hot' i lchd tkts Contrlct without Artt biving secured tb6 pdot written content of all Meat but no imendmons shall be made in Section' 14 ex. Salton-16 of , this Nntract, r, il l.'+, , i..i ~~;lill,~ 1 1,'.•:', fl' ':'n it 3•I r All; (d) The Agency' covegant;, 0nq Rgrpes,tls t Ft yyil} toper~th {ftq~n4a~9 ttttij ;QnjtP¢e,Jts,System.oc :ause the same to be operated, r alnralned and managed in an eftlent and economical manner, can- sistent with sound utility practice and in accordance with standards normally used by utilities owning like' Oroperttei.' (e) The Aktncy covenants that it will not make; tz .chanp In any Bond Rwlutton; so,,syq. to create additional Funds (t-xccpt those now established by Article V of the resolution authorizing the I ticq of the Series 1x1,76 Bond%~ wito?ut the ap rgval 4f uc1+, rhaus by $ov ruing body of eaF t , n r `s a'f ea~ AA,, bb i!s a Ili"tfi6iaEn'o n~f're S~ pa to`' dt,~SMirifated 'bf aynlaIn fn*'thi b nd ~uhd; !}ese b'~Ji4d'oii'thb'CQn~lrig' Fdiu~ Eton t~'$ ' lrev]ASIA" the f solution eyiftorj iniha' Sees l9'16 Bone, Mihout such ep' roval. F11 1 SmIo t 13, Protect Approval aad Willits of Cldes when a Pro)CCt is W Apprl odi f; , (a)' gzi;ept'as't¢ dry' uh Lignitd ~lujnbe't' Cttl6 ,(hete>? ''dppt'6vW it a lsro)l ikw to t'hb 1esuarlce' 'nH~ teje; or' >londs' I tb oVfda nt4ney'1oi' ei+~h Piojlthe itgeol s~'~`'''lir~~►it' i!' written"ru{U e' tb 606h, Cit)1'is req;F.I' d by thb' ptovislorot bill paragraph" (b) ol'tht `r++.~~f Sn 'If' a` rbj6tt :rah bedn Approved putrrtft{nt tb p;rarttph (c) of this Secdckt,. (h4'Agltic'y mad tjieEeaftei slue, sell adlouver Nohda in order ?o u11y 'provldt ltln'l such projectlnclfidiitg'1011, 61 n, to'nsttuctfon;' Y1rid'tbes'~l M of hilt t IN'eoijtri" ircjal t'l6h;"~t''tb theet'any`r!4{iC 4M`btif a ne M:f 'riot, ed+ dih ~suitiia tl; rllb lot e't'd'dal~t hi or bv~etrlin bl~c'ecesi'e 'fddgMen ' oethkWa ty lbs's~ Y Y j p1 (b) A written notlte r,4 the Agency's intention to provide funds (thro,igh the lssuanca: of Bonds) elf Q Or is FrT' a 1icpn al gc yI descn i 1 JT pe 01 E 'i'therjute min, 1 l lT% j 1+ 1~ pp~~ t r I t~ ,p ~i rJ i IE ro n !a( II,' aapfcW of t(taahst1on td'1jlJioe sell altd t statement e e, t att J , 11 I +J 1r +:J VI V17• U 1, r.( 1 G . ri , , i f, 7. ,y n, QP"f°4 it Q f TW~ertsSp 7of the,,N i;,1,1 ,W) , I5; nEar~Cpl yr eask1on p te . , , m ff lJ f' of ;~d i. sfor thji eSpj60 days a ter rccejpt such no 1ce,'eac~ „~y, )"llal~ve{ pg~rtcy written notice of Its approved or disapproval of the Project. It a City fails ro' gave the Alen eyl such written notice within such 60-day period, then said City shalt be deemed to have approved the Projcct. ~,;qir.(' , t r I fir nr t it r i" il'Ir.l v 4 Ir r! 1 trfr 11 • f[. 3 1 ) 't t arrilr ~ roYed ~~ec14 Orp4e t ~~sJ fc1 ' t+ of e u~ea rlrli ha~dt,rapQ€°iY, t~t Dfevjckil y A Ar i4 1 J , f 1 r d J„ 1 J).I r A 1 p 1'it /age tn1y,pr e t tb' suanrle sate ~140 cfeftvry 41 f provide ~uc t~rct 'Yf It ri rtr r,r f 1 X' i n!' It r ke" 1. i • q J uti< ~h, t t s~p1~et e As, all give asuf rwritten notice whfch r ! theditlc ' approed 'roj'e~t"end" h1ch" of tie e1 'i! iapprdve~'rt~e Protect. Any of the Cities who approved the Project may then give the Agency written notice of its or their desire that the design and construction of the Project b0corhnicneed;' and,tif, the rAboney de- fr4in4a,t 9t,tjlf p(ojl;gtl 3 41.0 Il lS >o' pr." l%,y h S e,'jsskAn~f,1, IoJ5 jsr4 411 IVY 9,f, such I) s, b~' t~#hf~t '4Y',1"hj4 r ~f4 ~i PPr~°YS ! 4 ,npr(4~pc!E s li,49, !C14* ~ 14hjIf ,4P1 ?Y1;Af~kei r~1iP,'! Sraer~R4p'tY .lflatrj~,~11 pf}~Stne,.tsf4ar}eS,itAi4. f1,deltivfrYr Qir,QP4t,r~~~c(t itt~Qs{ srpliJSJ~s,Ktl~ec,{h4,CrotllR9cSsuff:,l~PtIR1t,~Iie,oS,4Wj~~'r~l41 ,FftfA h (itpafr~t9pR,T.~ R'.t Est S,~Pf~ F ,'I S , , . . rf ,1 Ili r/ ) ul .I IF u ,i•j, 'iil u'1~.7i?rr.:i,i: lilI rV!NV , ~dj 1f oily ~dy approva a rpro)ect, glen wit n i le time Ipeciged jn pvragrap~t (c~, auc~ '45tdt AWI,'by st-resolulibn:drt drdlntice1doNed by its"govdrhing body, Icke(whfdh!6f thi Mbwln vpdoal shall IM(6 Its taturb tew0dnsibititlos'u9tr thlO'Cotitruct.'IC tlte'C`ity disaipprovirig`®'Wbjetl Wreu6det fails t6 timely demmuni6ate'to the Agency is to thi election.of °an optidn utidw,theip F lsldnli of thle Section, It shalt be conclusively presumed that Option Two has beeit'etlciedy:k) ~~~.,ro t ,ol -,o- &110 (1) option One, - . , Wp Each iletl be t'ntttw, 40, 'scfiidulc and'receq bp 'an! its°ow ecc'nant, the same proportion of the available Power and Energy from the System as iii het n,Qy fot Load relates to the tof~' ~ne78y ~0f; ~ Si,,oi all thFt~itift for the. ro~rrfspo rli~if rnQnth, of the completix' Contract ear nr""xf~ preceedtg the eftc.hv elate of th6 0 (1on.' (b) As cpns~dFpj19,n for sOch P9wjr, and 1'64' , ~W the right to' purchase ihq same Bach Wily t afr~ti c)as~ manih, pay tp t1 a AiencX Its Poportigpats share of the, i,?t?#if ,r Sy;lem Cos~tqual lO, th,5 Kacenlage of alt{ s N1et nergy .qr, Load4o( lfte Nil Lnergy to, Load of all llic for tr%.ontract•Ycar next preceding t f effective date of the opt{'r (c) Each' City's obilgatltih'y under Section' 14 bf this 'Contract shalt be equal to i:,e ' ~CfeeKt~$e iS calcuiatid Otflo' file prece>Eding Untence' i (2), Option Two: t (a) During the balance of the term of this Contract afterNe efte lY6 }Oats of .'Ihe ,4ptjon, the amount of Power and Energy required by the City exec sting the option!, 4o 14 purchased under Section 3 of this Contract shall be limited. Suc i,ty shill, in each cat• endar month, take or pay for in amount of Power and Ene4 a ,JaFto the imbunt of ( Qo,`Y.4r,rynd i~ncf$Ylpu~~~a dally, sugh ~itY,(lgp!:ticc,,fi,Agen5Y:durjn;lthglcOrrc);pondin$,rQonth of lire !2 Consccptlver n?ynt4 3 ,pcri, prfcCding tp calendfr p}opth o~ tb~ 4~e(~ of d,a~g 1. , f Ihp csfra;c of tie, optlpn such other amo nt o l qp q gild iI as py,tt'om 10 r 1; " t,Itpe to Sime agreed upon, by 'III th Agency an¢ the o ficr Caress; 89d thf Agency ha11 00, 10 Qqf ,W ;cqto. prQNje yrYI ~0~1 I }f?°Gr~y R efcfsf such a~nou, and t• i~l. 1 ~ 11, G) f t r L, i, i 1 i. t(he City shall be «1ie,ved of its obligation to purchase a ofr. / rfquIlel-of frgqm tttg Agency. The Power and Energy furnished to such City shall be blff by the Agedc t ll at rates and cbsI ii from tlmb to'time)kdopted pursuanf to 5cdWO'of thist dniract. t,r 1 , r ,•+'M 'eakutation .c4, tite,1trr iting~ City's objgatfon,,i,ndet Sictioh 14', of -this ~Coatract - shall .,II~assdmi stkh Clty't Nst RrI for Load l:dr,the pdrpdses of, Bald 'esilulationi its equal to such City's Net Energy for Load in the completed ContiI Yeir next preoeding'the e9cctive A' Sill il/ n'data the 60tloni ~l1y(.{.r U[~))~t,Ili i~! rl,:(, 1(,~~y 1. yri i,il(~ 1-, , { r iI , ,1 I fdI i Y t 1 cr 1 r 1 , 1. n r`,iTf )~~S7.tL~,V FPSF.~(I 4flf(}. apt},Carl )1 Ii., .11, r;~1'Jr rJ .r riJ ifr t.;l i!, r' sr{ a rl', i. I)1'Ill~t l( a`;,-,(1''1'B"e'iFSIV~~'Y(ife'iby',„o~tl•6td'1'llatl''iii'c~''~r~`l'U'ot`•tlti'`C~tn~i'6c+t"YE'a'f"`~vfdh~'a~i It~lor?p,t~3t>f,113p,days,after ihp;d+te.a.Gity.disapproves a,Prolestl a~ permitted in,parolraph (c) l n I r 5 I r r P !'.1 .'~1 L~, n t tar; I fi till h' 11,~ nr' }f~J F' Y~3.1 N Y_r flip ill ~1 t 1Y '31,1 1. , }ill; L~ t r 1 he 1 j(Y kc~edule pow~~ e b IWT'~y tu c~ o quta es ~d~ r~,gtntenanclo, an~~ ^1 IUf{0$}Cf$ChCICb. ~r fiF u, rt 'V r Et_fi >fn)r ! f ~O f 1 11, , I[I nl r r; td ii.{ (tll ..17, t (i Y Jlf, 1','J1 , (,~lhfl~4Jil,PPr~1Yc#l.P.~ro3SOt) 149dflp,aglAPh~~dl~a) or PPt4 ptt ~ UP ,9, 1! III! Qara r ~h r~~ gb? 1 4i~p ~ ,P~Ypb1f, 1 fff ~i,IeS,Prli"r, 4 }cr.~AsYPo}y,Sr'Po 4:n~fg?As ~ 4„sivR 0 I Af Mfr ,YtlY,ltgIlly4 ,CiIty4. ~I.iP tPP,Sies Wlatli~IU.S 3 f 4lf„ ft v41~'; r, imp ~r,t.fFeS~Yg+~%s14;p IS ~>f F.f;er,R1,,OPUAii ,1gn9,:by<iiiI ?ty,) r,tt I] i4),:TOe CilY- whch (eXPOfev',an, COOP) wifslia.4ttJAi par,agr?.ph (d),shaIL W !thereafter t, ,~5~F4t~S~aI1Q PFalpve,+~ '~fpPQsovc:IlnY~lubssiluegO.lPr4focts,l,t't , r ~,E,.1,~ f~~ ,rs; 'r, ,1 ,,:,,1 eels t, .I,.i (I..Irt Ir 1^r- ~'t 70 t ) f,l . Ir Vif 91r~I eft ' 1)U' tl r li A ~ .f!, J' 1 1 rl 1 ( r ~:1 II r~nt in ip. fa)-. 11 ( Arttoua'duE itur :'n~tt~ls olhir thanY( he C1 es s a be. akin ~pjo ~cfo 1 / rt ! t 1. chlating the amount due from the Cities. J 1 S,1 11 f, r, f"r . 1,311111 t I I , ;'1)1 III ('i) f; ~tty; Oak dt,}gpkI4Y10 4 f41°f1 Si?d4`a, Pf+fRr :PPh l ~o.~,~ thl;: St'tt~on, ~l MpylkkelcNllcf rr o1~ tjcrirlafE(o(1 and ppprgyf )t~'~ ~'ro act, r,2,Y~ S r Oil 1~ (j C 1 ,'ri the'Ageitck,and,thch of th6 0fits'Iepftdvr'Ithe"r0004ildarrib F} l l ' i (2) In order to pay a pro rats part of expenses incurred (including Debt Setvice),since the Project .t as ai,:lpproved, th t City agrees to assume or, pay such amount as may the determined by the Agency and the C'itles. §ectfoa 1t gfebt, Serrif~e,~'narantee, OpEnting ait'l Malnli ttine~:z=r~l~.' , (a)h In any,instnnce witere, the amount of moneon de,oosit to the Bond Fund (created by the Bond Rcsofution3 js not the ft,.l amount then required 6''N A deposit 1h'ettiA,'without g3v,ng consideration to transfe`s tnad~ frotn gther,`Aar' the Revenue Ound 6i from 13'ond proefeds'(provided that transfers may be'mad4 from the Res r've'F'und to the Borid Fund for not more than twa' (2) cogsectiO calendar 6,%nfhs) each City shed tie'obligated to matke'a'Oii ment'the aggregate amoudt'of which'shill be the supounts that are noceisary to establish or•reestabitsh the amount•thea rewired, under the terms of the Bond Resolution, to be on deposit in the Bond, Fpttd, ,t a„ e~r•Y4, Fund, and the Coptipg"cy Fund. Tha percentage share of the payment to be made by cac City shall initially be as follows: City of Bryan, Texas: 2~{.~1396 City of Denton; Texas: " .1,20.34% 1 City of Garland, Tesas 41.ti696 Ply of preenville, Texas; 4.~tlgo t x4epf; as, syt •forth In'Section l J6I eoclt petcentage shAro,, of the 0'a ment lo, b'' fpa4 by each each' Uact Peat: Such W usfmEht'~~hal!. be''mede by City sht}ii be' adjusted' t, the be Wing` of 6n SptSufatingt the hefceniaje'"telatjonish(p• that each'Clty'i'Nit'i nee~y for load foi the Cbntioct Year irnmedia{el}l prccedi~ig"the Contract' beat in which the ad)us'tme'dt` is being maQei>car'`to' the tots hggregalcc Net Ener y fort 064 of art l Cltle: fo`'cucft ConL-.t l' Year, and the ``;u'm M the adjusted percenlage4'ship f ~1 IflQprt~' !'?'l, ! ~ KI i. ;~.r 71 Y fl , i , i1 '71 U ,,t Y.., t i'' i ' i l: •d:~~. ,,,,,Tharpaymenis required to bo-made to s;ld Bond !Fund, Reserve Fund cw Contingency Fund (any s otse or all .of suck Funds) shad: be paid by, the Cities in the percentage, shales determinedr above and such pilymenis shaft be mado direct to,thq cumodiad4 the tespoctivo Funds as established in the dond Resolution. Poch City, u&-onditlonally coveaanis,the payment.will be made, if required,+In the amount { and in the manner prescribed. The provisions of this covenant are for the benelft and protection of the Agency, the Cities and the owners and holder` of Bondi, It being recognized that the holden of such Bonds shall be third-party beneficiaries of this covenant, and It js!uNdefstW by'the'con!Acf hg`p rties ttu I,11t~ P'~f~`~s5~ °,.°4dt,h~f,~d w~l;~gre5 tdhR P'trf¢~# o~.ds,spf,ditjed uM?n tlti~ covenant. I'll (b) 1 in any lninka,-6upt that oetasioned by:thd failute of o City'er other ptsiver' dYCft' Y tb pay the amount it is requited to pay for the purchase of Power and Energy, ha which the M1& 4 ifitAgency re insufficient to pad O~eratin~ Arid Maintenance e~cpenses or :her sexpensef (xcepttie~sg for which r~ Wslon'`1s'tsla'cYe Ed f+t;thj itph ereOf) paytfilcdto stead be ~ald td thhe Agen.~ by t e In the percentage share determined under paragraph (a) of this Section 14. assumm t te)')W'Ae#is' fi6kr, p6~646' With,thil'ippi'b4al 6rf` &H A&64 06, t~i OtA maa'y Ofirh'awilabilifyy~'fbeAe bblfgatidfi"t '4n'aki'~'p" Vnis'titideirIikCs 5e t1 b1 with rep*ho''I5eV(L%, f the Agede'y'In6uPtef $rib'e to"ili'beFbi:tirfg` a ~wrVt+r plitctiascr,' bite this saC shalt 69t dlkfiaFg~ lth'W 1(ability of those who wets obligated when such Debt% dic`e'idcUJlVM'(who'shill'tertsaln`sed6derifjr't able). >>t'r (d)'=iri ihe4vinr the Agency 1s held to bs in default tf ter tht, pfovis?ddi ~Of the 8641kesofgdon (by reason of the Inadequacy of paythents''fet(Git`e'd tb be"trode, by thet'Cities' tin&r'ihe' 0tdVisloiis of t is Contract), the Cities shallpe the dffjult,~y milking ~aym~~~te in the same propofl)on~ !el provided i 'jfaagtkpft ta) of this Seciid . (e) in the event a City disapprtves a Projcect under $cc%ton 13j or if Crt elects to with- ' drilk frdon'trait A#'Hd y:GndiY 52c[Ebh fti,'tltl~i('iralr"Cu' "shall hh d"bsi'td'tie o611g Pecf 'tri3f~i)~are;! graph (a) of this Section with respect to Bonds thereloford llsue a 'I(pdtr'th'erea ter (s'stibd 4o i'u~ly provide funds for each Prgjeft;CRS!conteotplacod by the #..,1.oed senientp,o( SoWA3(1)1 and In I-,. ' 1~•,fr., a addition, 10 a City elects option one,, then all of such Cities shell be obligated under parar,mph (A) of this, s1cctiort with respect to Bonds thereafter issued for Development Projects dckribed In ctsuse (i) of thd'definitioo 61 that tern: If a City'clects Optlon~Two;ihen eli of such Cities shall also be'obligat6d udder paragraph (a) of this Se:tion'wirh respect to Bonds Acreafter Issued for Develbpment Projects and for System Development and Reliability Esrrwndituru."und Bonds Issued for Prbjectsrthereafter ApProyN, I: Jr end In cons'.deration of the payments to be made by the Cities under ibis Contract (including those under this cdon) tho'Age,R.~; agrees to ust: its best eftcris to deliver Powet and Energy from projects, to such'Oities, undei the term,. of this Contract, and such payments by the Cities shall be in considetation for the Agency't agreer.,ent to deliver such Power ar:d Energy; but the failure of .the A jency'to comply with such agreement shall not relieva any City of its obligations under paragraph (a) it (d) of this Section, which obligations shall be unconditional and absolute. y ~cti~ti 1,6'sd lb'd flew entity 'a'siuni~i prlmirj f 8'enc lr'the tvcht N. A " Is teCrealbd tinder ding (es drsttnguish'ed 601A the foe's t`o rate sfiare o r f the l)ebts'of t(,c t. enVy'thih 6'ut'sleh lftbilli~' rp coatfodto4f a be*, sysleA (not i'inanced 6rlder~'Ihe Bond r(esolution) with ieipect to projects thereafter apQrgvtdl t}iefl t?+e flew Why 'rhrtli'thcte,'01d be Included Iri'the calculation 'of the pfrcentage thilk G( the payrnent' jo' be', made' und;ti S~rag`re~ilia~ of il~ls'Siktlod, Mrlthel pputp)se bf 'detE7mtn1nj' Suds prlri}a'fy' llab'Iity; but'In'ho,event'sjtalt hd'Citiet of Bryiri; lbehtoh,- dertnblllt end Oirlarid berelieved of the obligation eatN its"assunied (by' lire eAccUdbii `'hereof) `Wclolleclively pay'the eritW'arhbunt (based upon the peretntag'; of Net Energy) for; Load) ,nqu,ired;to be, pald. under, paragraph (a) of this Section with respect to oil Bonds theretofore or ihereafter Issued without regard to such new.entity. Section it it keetedles In ;G~enl oi' tit' touAl., (a)' (I) rf any City (Ails or defaults in meeting the' ter Fns,' conditlohs and covenants at this contract folhtr thAit'ra detablt 1'n ¢aym'tht fot''whlch!lJe0vtslott is' inadt lOubiwion (b) of'thlt SeFtiouj AAA %A 'derablt'Et3ht3uno9 16t a` (tetidd d It da''7 s; the' A'ge'ncy shall 'gM iWce `dn' tho' rhadnt? L-60 t2rhpfil6d b~ Section 31 %f this'(,oniiAo' ild btles:,TW&1`0169'01j' ihal(Prone the dote d'& { r errs u' r rrtailiby'-6f 6A'n&kff h0f A period of all t1:y's t(t ctrre`thci defa lt 1 Q? Ir, a city. ~oiip. to movi py' p"m, creina ter callgd a dofaut' in, Ca m,grrt) ifl the Agency tat is 'reqpi n et brr made und'r t~c pE~ rsIpnsgg' this Contort, ands~ deau)t'~1 r~aym►Rpt eqn- 1 Q~'C f16r4 tlnues' ~or per fiijetn ( $ e h he del4ult n a(I' trc'; In 'he B maft l fe nriiadr al Q b oph 1~11 f ,[r') r4n~,fa1 111i'7 , 1 ffot t o, Ale'( 9J tU J i~ r ch nq!llce Ba ri e p t q(1, ifty, OR Jays to FlA r t o 101 amount ~hSp .t#u333~ tg )he ~ er,~yr itQ$ttE r ' SIi Ir :fil'~ (.f,1 t' r f r,. N al iV i119f!{,1 d. with (nierost 1bgWri, is hererhlaflcr provrccd, r.,{„~~ (3) If the City does not cure Its default within such period of thirty (30) days, then, so song as 1 such City remains in Jcfauh, and In addition to dny,gt)KrlI01sA1e4h4 40M, ~V.Ppdgq tI 4'er9ntract and at law and in equity, the Agency may terminate all set f to such City. Additionally In the eV"ent of'defaislt in pA;,Mlltit; lhE"'Ate'dcy'rAAy thd1g6,Y6 afi'd eblliii fjotir•suW &q*1ch taldhNe Month ~~it''Ami►tlt,t'whieh'iHC Agbn2y'r(elefhjihe3' I be'ih'e}'differikV b 1*6ih''wW 1W'A'jin'q W'U"Id fjAM rdtel4d fe6rh dt4h' C14y'&b'der thla'Cbritiac#;' [oy Pbide'r ~iid Encf{ Ad 0 4a<`ts luksh.id Ah de7wtt 4 tit'such "City,'fia'd'sitc6'Clty't►oi` bc'ittalif'tldtaGti; ~ntT'idb"nt4i ht, jf aH "1(hick'`tf18'~l'~!?ic `i'!c`c~lil from sales of such Power and Energy and strvices to the other tiff At''ofath;`"tlthC?'dr''bdtli: ftminatlon of sorvica hereunder al s!S :tNi reduce or' ehahgt. the obligation of the defatrlthig'City under thdotheeptoVislbnlofthis Ccntrvxi / x!i ;It.f• ':l, r'~!'a ! .ash t'~ ) r,'~ ,,~tirr +}r q ! ~r5' hrs b(f[~ 11t4ti I tib)11 if `tt,eoAg6 I t fails bF dtirfitt,il! In ,it tc'enng~ ibis tetnit, i`dhtdnrdns seed it f onfja t, ei<'Fe t tit3 ff{airf td 6sh asdt{h6jt k! It e'nts'e' to h bon taht hn6,u Inj l li~~li tk S6c'tloH~ j2'(b , ah t,6016 l I f~ P. slih5JAau 1 bN It co#rEirt3bf' {I, ~ t>fi't~oivbr! efld' bi ` Ciityte 6Y;,t5' Jd~s"efttr'`a `Cttj.° ~(tcn`'dtAulf` Itfthd m~Ar1' dt"bc~htMt ate` In Section 31 of this Contract, then such City shall have all of the rights and rem~ittid'}jifd4l' it I Yr', pq4 I9„4g4tty, Sxcepf that in,no evoAt shell any Af,lba qilks.be rslifvad of 14s obligation, spcciiled In 4!41,14. : Tie IpcjiYCry o(Avail oblq, Pow,or and Xnotgy I Ps. provld0I: (n .t61s Contfact,phall be i ministerial duty of the Agency. B•13 , t . F i .r~ ! j~ 'a 1. r~I Seed" 163 Re•creatio s of Agesey. Each City and the Agency recognize that pufsusot to the Act the ; oon,urrent ordinanom by which the Cities created the Agen y reserved the right to the goverping body, of each'of.thq Cities to Mil with the Nher,Citics to provide for there-creaWn d the Agency by thp, addition andApletion; either or both; of a' public entity, As defined in said Act, go kog ~s.tbere is no, impairment of_obligation of any:exluing obligations, 91 the Agency ~ , , : t Each City covenants and agrees that it will not join with any of the other entilies to recr'eAte 'the' Agency'so as to delete ono or more enritles'unless' (t) the then dut'standing Nbts of "the Agr:rtcy hnve' been ~ oald or , prWslon made for their` payment under Artlcle' XC of the ROM Resolutlod. or (2) the Holdert of at least, 60% `ot the principal smov t of the Bonds then- otrtstandingi approve the conrurrcht ordinance proposed° for adoption by the Cities;, or (3)+ the withdrawing entity' contracts And agrees lb' continue to pay a fixed perdentage, (as determined by the Board) of the Ann'aal System Costs • (including the Debt Sarvkb Requirements 'on the theta . oirtstanding Debts of the Agency),4ufing the limgpur~h i?pbt} fe!naln,quist~nd~n$. Sugh pgfcRnl ge 4 all be Axed by,calculajjng '1j a pegerltAgc ,f+al++ii4nship .gf ,the .withdraw(tig ep4ltY s Net energy , pe Loa 6 fins' thq Cont~ac4 Year jn wbifh lh, fifp, Cage tYas,th4 hi~hcst) 1>fars to the tgtcl aglre~atp jet knergy for ,dad of alt, 'dqa. (dur1ns ju~'h~Cpntrrlct Y, ar)..The lghliga{iq~ For~tarncd (p ft~op~ ~4, p`~t o fie; entity c>'in~ wl~4T w,;~4hp1,l rgM41>1 u»affcSteSt,Ynlill,th,4„~ort¢srlxrmlttcd'to bel,issufd,by~' $ccliop,14 e),,have,bce,n qai ego, rutlfe4,INo,. lt,Q4rsws!„#h~t).. IfJWIIt' until Fuch,indgbte ncsg b4; been palC and at,suf tijne thls,Cror~jrcct~ s tq pjt d aw g ens i sb~l~ Iftjn)njtj 11 p..l 4RB~, b,,t ~Y~,; , . , .,r,, 7, Frorh; and a4et' hoticb' is gisen' I& the>Ageky, bf thetntenf 6f ari, entity to withdraw froht thb' Atdney; !so'edditio,ial,Bonds bf,the,Aaendjr shall be issbrtd'f&rJ'nltv''Proje<ct wbl*ilnvoi tVsny' additional payments by or guarantee of the Debt Servl~c ,f~~o III by spc , v~~th~~t 1101P entity. Eacb City cRvcnsni4 And agrccr; that It wil!, no jglrl, with "Y Af the, Rtltar ep'yii4s toerepte the ~84nFY M lq,?dd pot ttr,.ss19rs4 enilii4f,NAlc4s,,fJ.t,.lbe;tkSnlRUt+L' nd+ltg Pots'o#;.k11W(Ar'y lrwl bees! paid.,q' prP,vl~n 11ltid4 fot,. Wl" PaYt> N t'l 0ei. A'X'Ji~ XI 4!f ,lhq Qop4 Rs~s Mj0'A 9 1P Ak Halelers.af at, ke4t O%of j1.te,p(fn0PAI'A'mRgn);ot,tbz,.~Ws'9f lh4AVWY Ott! 041 '`>n AWPNI, the concurrent ordinance proposed >j~ adgpt~,sss by; thq.;(zties ,~G,;(3~ ;;ntity, bs pg ~p,►tlmly, either fas, approved b~+ tide A>;trtc~ tpel set forO in !ne rconcur~ent ordinance} is Jmes thenmatiry ~a6d3tY (rrlhp.ymcrtt of or pip rat9 sj+alc of th i) tits ofi else' Aged kh shal4 dj ,inch ~ er the liAbilft of t G e d6i ed w6En sr h t bta rorr at ;ixved t 1 4emalnl il,fijy~p6 t)' b i'd! t e' r li o " roJia' tfoi('' ~c a°nd'" ►m tYte: itet"ko' a ii yFtl"of "tTie fe it ildbr' d'f" i~e ~d~ ~iu`~~ is18' ';C~ liS ~Edr (ii '`~~gt o ` 1~' f ~ oAl#cd ~ri,'~f"y1 "~ith` li', oElr 1 i( f I if, 2 +I 1 +I f. t hi t'~tovtl~'' dyjn rik ol'lian ~ysI m c s Ftfr p bloc~}' }tlc Elr~ ~ rov d afte{r't~e ~e i~ ~ab~tt o~ the Agency. II'I nl i(i tits r', ~',t~ ,Ii~Y,lt w fe',}!=i t`!1 , ?I }I!,1'.~ ~V ;fliE~l ,d/`If, ,`L'J,) yfu7;1 Irr,:1 ,Ci Maria 1,11i :I~it: f,l7s ril '..'i Il',-,t'~?I Ili I ~,nl li di ~ ' rt t,h,rSlc~lb~~'17i'l'sj~YdeAf`D~~+ 1'1ti't~"i~sid dblfntjlinc~y.';''; rl ',~o,~ t ~i,~rlo „ nd rl'F~r,,u~pi l,t, a,."_) dSnr iq ">jd~~a f?r, Arr rrlui ✓11[i 1~7~[~! ,r1J r l ~r ~1~ ' , c ,:11 t L I~nr~,~(a .1~,FhpifYelrt~~~~!4„~ity,~#rj3,jf~,p!#1~4,►!►Y W9SnfflRr~~l~4.~3~1rhFfe{C fReClftCd~~lAlere~t~gR, s,9S,1011ij(lpeRS,a'f?QUOshAlk,a4~flt.9,fl! t ill#1A19f fFPwsCC>Mt„~~1,~~°l~,PfS~A►)ita?~~Ira7S,ihG;,St!~!p~1u9h, p±tY lfA4,4ff~~ !ff ,4~4tjQ,uPUjP,9ld„ill.f}t4,44~,E a :sr1c)±,in# ji1 4tPlSr# Pf4c,C n8if4E (t;00944jqut l~'')MggP o4u , p&l f:Pl~,Yrfm'M tfN4'#Mquoloyp A4191wIt the0pq,'4ugh 9cAon tp be.ir)ftjiVio 10, a~44!!t(,R~44~P,etfAt~.Wli~4'~~lh,~~ ~~,,I;,, ,~Ei ,,l .1,;,,, i,;~ ,.,~.,;~t ~ , , lk:ij(by Al1''pAyAWnts'requlred,t0!be rdade.by tha Cideslundel' the terms of this Contract shall b1 due and payable within th€rty (30) days following the date the kgeacy redders1he biil,,and the Cole' 3 lY' hP~,A~ 41 fight P.,ll utA~,~!1f,44NPnl4Al ;f r cHug4p~cl lAga~4r}4, aJ#~ pAY,nlf91 PP,*6,,SC;jion; l¢,(#) of r,4~ , , ~1 4~~,!~~p1!P~I $sScm~~rRst~ +llc!.~Ff ~lljtri 41A13t4,1P pa,Y41f~1.tobo,f$AdtrIAtp (M,[ipttid, t e. f !)P,~s'lfP Pr; !1 ~PPf?~"}},4AFY,~'yn~ bY.4~'Y~ ROB, P IA o~ 4t13i!°i~#ii,F' s ~~br °S ,D# 'erlt,4lid ieGYtity o !r3Pb41° pt"•~~rndei fd'lcN,~Jws dAflr1c51 o f ~o FebR11!tign)r w 10, }~~.U ,Q9A~~~~~~t,ti it ilfll. ,~IIdf1 S,;tl ~,1 ~~f1 7f P,'l ~;LCIi (II..~ :~+I r.' f!5irl ,1'!„'1111'r~,~7'~{' ~1 3r. CI'n'1'iH~ 1l1 ,1~ I, {c)IShas'b?if'dispirle'aa betweth ahx' C(ty' and tliIt gene "arise rA' Co''t",sMfiee th'! Agency is iii corhpllantsf rLlth its co~edetrts'ea'cootatneb'keYeist,IL-Mr, ity shalt rltretlihtl0j:be' 6bilf0tfd 1.::~,~l, •,o,1t y)ai, Ir,ui_+t+trr~rr F!•lq y i (1) to awake the pil r"Ots ptovided by paragraph (a) of Section 14 hereof and '(2)'to p.y tueh IiAodhi 'bf the"'Anduhl Systeut''t:osts dt' may 'dot be to dispute, oendill the itkNutlob of such dispute, provided a City may elect to pay all such Annual System Coats, hkluding all dish W sundu l IA.)I►.e zY4p;,e„¢ispu cd W911r l r1lnu;<~ " ~yt'vai Cqptp,lf,paid.by a city,tlip ume r<~~1,4f plescd in escrow in an interest bearing recount 6y the Altitcy pending 'resolution o1 the dispute, bull poly; Ole principal amount thereof shalt be returned to the City, If the City elects not to pay the amount In dispute and the dispute is resolved against such City, the amount ultimately found.tp,ba dokQ plua interest at 100r annum, (calculttSe¢ from the date the same was orlonally due), shall bo pald by thg City within 1 11 15 des gfrtho rrsolutiot pf 'rite controversy. Attorneys' tees shall,assesKd ~l ootitt cons. Srktieti 'lg.' Powei ~'+Ova Coatrrcb. The Agency, may provide Power end Energy 'and services pursuant'to a power sab_q contract; upon such terms as may be approved by the governing body of thb Agency and', except Ices provided by Seetl6n;12(%), the Cities., • . . , , t~ f!i',. : . ~r J 1't i f I . I I fir . X17 ~i I:" +1 tIl ~9i Coot)au>te~on 4t Services. A t ty', +un1'es~, ~t' eltFts L an option ugde(,*t{oa' 13 pr withdraws under gectlon Ib~, shall )'rave the rghl to the contigued ppeerforr{tar}fe ,ot tt~err9fti pro- vided under the provisions of this Contract for the useful life' ' 'the System by giving wnttn notice td tWAgell at least 3 years,prioe to the'schedoted termination of this C63trad (etl4pech fled In Section 1) provided that if such terminal Is occasioned by; making provision tot the paym~ t RRI the Ikpts of thq ~ sency, tfie tpl jPay be given withlil"dasof wct provisign,being ~i9d~h tp ata t,9ljygaotintc D@y!'~$ oportlopatq,~fiaro .;i u $yk'' - elm, rj J i~i 1 f 1311 i t 1 i. kedil '20! Ctly Not to Sell Ils'Elel System. fth City covenants thit during the%irm o thin Contract (or the extensions thereof) It will not sell or otherwise dispose of its clecWc utility distsibuildn system In whglil substnglially, p, a wk'p Io any entity gther than an,assignco under ~ectipp T+1t Of this ~onuill + d, H,t, a carp o acb,rIn a signeer only fvyith th,et w„nlten~cpnstsnt Will ~+~SnEI',,~~ 4iI Cfgn; 'i1' Sfc►IaFt'rlii'A1bi{iuir'i~f+t 'M' F311W ot; i'Cttj:r`A ~Csit)r 44iay „~is)(gn liil►' fit' its W}hu vndel thI6 C6hU*t"WVn6t'fi t' IllJ; if orm1w br1d' 3Erb1b 1~dw~, but~ do rye' 8r otn~r''dldpoalt tdi"sba11're~levieloth'City 6f Ire'obilgatibnY'IOndet'fhli'Conttklf''tt J1i lddiril th'e`601jilttdti16 ftdil ~,%iis'10;'f1'~d;14 to Inng ^as any Bonds are outstanding. t.,,01, liccclion; 22t Dissolutlol of the Agessey, At such pime'rs the Debts of the'Apwy haw been pald or provisioas'made therefor purtuant coArtlcle Xi of the Bond Reeolutiori, and the Ageocy.is diisoW, tiachTity who,*a not.ntiade tin tiWlon undet-Becticir l3 orIwithdrit" Qnder+Seclloa,lVsbalt bb entitled to an undivided Interest In ill properties of the Agency in proportion to the artteunt paid WC1:3 Agency under this Contract. j1 SI!•,pi ri I'. (tl!S; i'i/S.JJI '1.Jfi 'E i'7%~ kill/ ~ 1]+!^.'Of1t .t 1114!1'11/. {•.f74 i{111r7"I~/t a}j feUi~l?!'. rt i:r l t';,"i nl is rf. ..i, ..rate (a)"Il tb'r''~t~'y~' Oil°fdfCb' 4~a~eiltZ'"'Anylbfi.A~+'lidltl~' hlrefb't~ikli bd"tbnder'~=`afnabk'd, Whiftlf ct ~n p3itt; tb`chfftj~dtit'its}bblf$hlVIMi dndor tnli' MW the rkI4 to''lhAke, We `O~yhiehll 4F 4WR'`d'l61W6'.W6 tE MI11,61,0 y'i ill Ove ll "d tht fulf'pArtle6ieNlatifiugh 'teasb;t"!'(r~"ii411tn~~t'h~~, :~ttjrnti In"'r`bAs'os1e rtYm'e'''`afte~ the accurren~~+'df lNe'ddent'`rt'~au(e+ re~i~d'bn;'~the'bbllRti!.:~t t+~ ~Vi "g1vHg'Ituch klelld;of as it is affected by such "foreff majeuril shalt be s spiciald dunn;, the santinuar ce of tbi let bility ihen ctainied'bb't for tics Aon b't'' rlod, 'akd' such''pitly thJ11 cr.+- ,sor'tsrrifi6 ~at'Cvb'tcWe st; Ihabitlty'with -61( reisbnkblit t is~riNt 'i"Ife'Ordi"'f~~+'thA~eh~` a! lt}~ (oy~ fi'e<rf~',i 31~ to iti'" Of C38df Arlke'a;'ldcktwts;'tir'eahE'r lAcYubttiel ii[st>ir f!'rict'ds; 'ri ti'bj'tfi . 1{c'eneM~+, of sirs"dP tl'aif any' Will rbf the' (3nt+eth!'.red:''of' Ito of '!`ei'id 61 ant'''i~ it i~tk di authatky, insurrections, lots, cpidemles, landslides;' Ilghintn5, `~Ea'Fth'~da1tlli,l ~iia 1iit itia!'tf; i3b)n1f, floods, washouts, drou htil arrests, restraints of ggover m nt d ' 1 , civil dlsvtr ilees, e,tp1 s, Pol; ~h t~, on Ili sue}6N mltcli liteakage oF-rcc[ttlltt''1o'daiili; }necliln r~; ~pioiinfd"'1dl~~Yo s' accouril Oil hicable,46teferittihit~I~I'Mihlh tkk'WntrI'of thl+'p'dfi~ Flrrlmltl`g''III .r tf y; Ills pndentond 8nd'► a thdt'thb'klittlelnenY of'stf{kat~ jhdlotk'ou all, bettr21 6N1lfi d'i 13e of the party having the difficulty, and that the rbSii>,' ttttldtrcnidnt' tft~r''afiy Hick e`` 'h3owr4"`dig ! 6 J~15 11 i i y= , ealnedI with ail; reasan.ahio dispatch shall not require the settlement of Virikes and lockouts by ji ceding,:o,,the demand,ol,tha opposing; pariics,,Ahen, such sotttemfnt, is, uniIii;vorable, to it in the judttrRCnl,crt the party having the diftku[ty, (b) Nodith le shalj W:Acove table from`the Agency b'r, the' ities by'reoenn of th; causes above tnenlfonca. ' , Settlon 24t insur'aeee. t , IC I I . If i f tfh'e' Ncncy shall niahilaln, or cause to bitgintalned In force lot the lunAt ~ 11ie gn .1~c" yy auc!t insurance with tespect to the System as sha11 be' reasonably `avaUayjc and as ti usuelry c'attiei) b~ munkipal electric ntilides cons,ItWing and operating generating :amt tt•%nimisslon facilities. but, In the 'case ; of = nuclear 'generating f acilitfes, not less than will satisfy the requirements of iweral and stale law and the Nuclear Regulatory C'onimisston'regulatlotts and-such other lnsuranco,a$ 13 usually car~Efd by, rnunlclRal electric utilities owning like j i;cip, lies. Provided, ~howe per, irr ~E,~ry event, the r1genc~ shat rnalnlajn, or ca k~'to ~ mamtaliieo, Iq force, (nsurince In duck INi'6''s 9nd agojnst such risks d's"tequircdby t4ie 66h'b gCoutign. i (b) I The Agency 'will secure and ntaintain' adequate fidelity insurance or bonds on all officers pad e:rployees handling or: resposible for funds of the Agency: z, f(, , fic ' fhe" oitio~• ici d`ctr'to`t r8cure"arid riialntain Intuy'an'c aith'res'pF4f fd itejoHt T6 I r ,i= , , .Ih , c , r , 1' r a ems' ~e 'Vl true j"i pr iCC{ h•' dees} { the~~re4olStbn, oKe11' tiei~bt If `thd toile ' icffd 'l't~° ~4a a `t obtains and maintains tho lhsurance required for, the,=beeOtiof,hWowners:of the, Joint rPrnject, bs then interest,may appetirt i i . tj . I=< t'fh'd'I~oeftC`Y' Y'~estabflsh'a~?d crfal s"sOci'al (wid (of'the"tlUiposd of protidi6g'a'$It fn3ilyd:lt~e [unit, Anlou'nts (o b, de0b4itid' 1i dt eredlted'fo 1U' fund' in' a fiy'Conirac''feat OW( tb4 af49(4t4t9d;,l,4! pti ~PF(M,ling;~ntfJlc~1;~s1~fr'~t4'.1TQ thy ilt4~yPklhrlt {I1oD~f4i@Il.d4P49d.11t,such It►c „it lsafStir,ku,~ l111P41F1 maY==xhe~in~,4tS .1tl in~Vrg5t!t, cuttti , s,dc~r1 1lr,,th4 00.40rly) f l~~lP )he.,fFt',4t:,4~lh4,!!f11Cyl4t h Rd;jA ~uctl~tft1...:1ffe,(9cA 4rg9unt o5,ppP OPrl314.0%xi'aric4,POhI msy be reduced: rt t)i,*t SectloniM Reperta:,The=Agth%*r will prepare, aad hsuo;lb edeN Citya 11e,following reports far oach fiseal;year>,(t) RnAncial and opdtaa, g'slater»ent>iclating to the System; (ii) status of constructiur ,for eich fac+['.~fy,6anstituting,th!'System doting codstrdction; had (iii) shalysis ofroperaliorta relating (16 the systex vp"1-fw -,Fit '0 111 ~I~:nt rl t 11~ -d'.r f7 ;i,'i. r1 l~r O III. (,.T,,I=(/n, Section 261 Records and Accounts. The Agency' All keep accurate records and accounts 'of the System and of the transaetlons relating to each facility constituting; tWSytt+nitailivelf4i bf he ,9Ff rocp 0 heaAsmfy,41! ,94=otdgr}ce AthI,lthF:Vn49,;M Pyq;gk-,ofiA4S9~1P, ~Nhi~!';shPil. jgclude . fPr c)9~VII'1 t.LN(k,,o,jn 4*4jf Oy b),ltla Iiif44f:fiSas4r~,safi~t,C4lt4r4cSrYea"Olit'Apila .P t ,ttNc~ 4tS4,u!1~g,Aild ll~ l{n4.4aSi1R7f 9~1t4'AteAf~~ja~9ling (a,1h~ ~Y'Rpu.,l~ith fft c,41=~ I ~f~, P, r `4,i, ~9 jar, Nb;eci,19,rpn,#nnlla{<iaVd~E,Iby Ar1,~1 lStr5QA4Slf:S~rlified publi4 ,95cQun1191),,~►1F°.PY~JR~ReC, llyfhpal FRdti(Rha~,IbIsep :Py, t4SAgffcy,}P,e;4b +Ci1I 111fr1.~ I~r III 1,1illrirr, I111 11, V7'r) ` 11-!'.~2 71 i~ r~'r li II Ji'~ I r,~ vcc'Y9 :r ,y~„Acce, ' 19F11',~!tY,1kP91~ I , ,,111M 4 Y,° [A4rSOla'- . aSCeti ,t¢ f ar►!1►!e aPY ice lill d;f ,°f919~1 Ate 4nFY~an¢IIt4E1iP~il9ia4Y,fA'~txrY 41~1hQ~Ys~fml,ThS,ABeY,a4_d.each , i 1,}Ys' $~Yn„t Inotllfi A 610 1114„ellSeft~}1G;~g~Fr4MA.Pf 09i,Q!b~f 41i;IfaeRRahi4itEr►14s,fQRi hp P,4itPRiF RE f i t It;pg % t,,TPYi4 fa9')hl I re?djn8 rgr.!prji9!?q PeF~Orm`ng ~Rtk,lrCjdgnlal,.ta dtlrvwrey ,~Sr$Y,,r4,Sprlehc~I~(fy~dcl.I„LI,~,_i lhfi, P'r'r r , r, III,',fl ll '17 i! r 1,:,, J.1 r. r/ ;1 ~(i if1.' i,,I'-l. ~,I=, 11, Y111 l'1 X1.1 H 71:,r rf ifl QYtI!il FftP~i a~sAr~i {t919ito ~?j!~. ,}!rA,,IT~e„~Q~INiRS►I,the4t.fb;"subjeat.to all 4,,, j4ljgt,9 ir9W?IlaPp!lifa~t4,,lhelcQ, 9}:ProrhNjt~S bY;.thc 1'rtlted:Statas oE.A»utlcp, ° fat YY f , 10#41 01~ pr APY 4theF:,~, YtFrlrti'nIR~ ~Y, 445nfYIhaving'j4Vyl.14 fioictlan or any ~hPr~~ r.rl, „ , t r, a r8 a ,,l:~l rMlt1 t. X16 ,r Ji!; I .,E~t 3'r a;: ,i tn~ I ~Y Pfd tfFf4l 3t'I}jY° QR:- ji,~'FK Fo,4 , Rpy,1 Of±~.a r1' l1u 77 I , Section 291 IF.asetsteots: Each City agrees that the ASOCY or its agent shall (when petmitted by eklsting"ea~ement) have full access to such Caserntati or over any easements, righwkway or, property held by such City If, and to the exte,tt, requlW by thd'Agcncy for an¢ and all pdrposes!regJlrbd for the System or any Project thereof. . i Section 30: Cancellation of Prior Contract. In connection with the issunltce of $10,625,000 TEXAS MUNICIPAL PawER AoENCY REVENUE BONUS, SERIES 1973, the Cities and the Agency have heretofore ent6led Intb'a `c'ont1ract' which Is incorporated in an Instrument entitled, "Contract for Develop- ment of Fuel Resources, Planning Electric Generatlo,; Facilities and Performing Certain Duties," which contract was dated September 15, 1973; that such contract provided certain payments would be made by each City to the Agency for the payment of debt service on the aforesaid Series 1975 bgn~s and maintenance and operating expenses of the Agency. The parties agree that upon 'n,ti ell- ctive r ate' of this Contract and the cancellation of said bonds, the prior contract shall be cancelled in Its entirety and no payments shall continue to be made th,~'•under for any purpcxe, said, this Contract s~jll supcrcede such prior contract in every respsct. Section 313 Notices. Any notice, request, demand, statement or bill provided for In this Con- tract shall be In writing and shall be considered to have been duly delivered when sent by registered or certified mail, addressed as folfcY4,1644s"Another address has been designated, In writing, by the party entitled to receive same: Agency; Texlu Municipal Power Agency City of Bryan 1111 Bosque Boulevard P. O. Box 1000 Waco,'iexas 76710 Bryar, Texas 77801 Attention: l?xecutive Director Attentioh: City-Manager Cit `bf t;r'terive P. Box 1049 Oreenville, Texas Attention: City Manager `r City of iknIon Civic Buil'ling fh~nca~1T~.,~i,7~20.1 r•~i Att~3}liq+,6ty~ Manager City of Gat,and P. O. Box 401889 „ I Garland, Texas 75040 t e~aJj Attention; City Manager Section' ....s Severabtlily. The parties hereto agree that if any of the provisions of this Contract should contravene or be held Invalid under the laws of, the State M~Tilfis,f t'ddh 6d6lraven tion:'br invalidity shall not Invalidate the whole Contract but It shall be con1Ir,"4,#g I*gh not containing that particular provision, and the rights and obligation3 of the parties shall be construed and In force accordingly. ~fei=nrsti!~ Ili:) Section 33: Contracts to be Separi;°. This instrument embodies four separate contracts between the Agency and daeh Citf. Termination ui a Wt,".ontract shall not affect the others. n;t! rta3 rh 11.17 tts>ti.~ i 1 1 IN WITNESS ,WNEAEOP, the parties hereto have caused this Contract to be executed In their cor- potate,names aI►S~ (r corporvte seals affixed, all by tf,e proper ot8cer duly muthod W thercunto, ns'of the day and eer first bereinsWve written. TF.xAs MUNICIPAL POWER AOENCY By .......~s~ ,.t?ucX.YOATN (SEAL) ` ATr'~sT: ..................5......ry Secretary 'I of Bryan, Teams (SEAL)y: /S/ t,LOYD.OYCE 1 '~7 Ire •.1 1 . y .r ..,.r r~ ATTEST: . i By'........:.A/JOF • E. EVANS................................ $eerefay, I ,!V i of r ri : i City of Denton, Teams (SEAL) fay: /a./..ELINOR.HUGHES . ATTEST: I : <I" Mayor BY: ~ L Aty6M 116fit tirClo det is ' City of Oarlsnd, Texas (SEAL) By:...•.../f/ CHARLES 0. CLACK ATTEST:' Mayor 1A11 .i;i{ .il,dpi~r,r ;~a 1i r,1,;x,1! +.r.~1r•~ 7.{I ,ifi4~'f,.~rl7;i a(. ,rail r;' By4il'il.'..:~~~a:i At.9mWATSO ' rfi !lj 11';i !,Ikl l,i, f i ii ~1 r`"CYayr Strrl'ela~,, ~ rl .~ii .r~ City of OrePnville 17~(SEAL) l!fey: 1.. c /a/iJOHN f RIFPIK , ATTESTI Hdyor By: /a/ IRENE WILSON City Clerk UIB 77,77,7777777 EXHIBIT A POINTS OF DELIVERY krrynsst , . I, Bryan Plant: Facilities included are as follows: (a) 138 KV lines (b) 200 MVA, 138/69 KV autotransformer (c) associated breakers, bus work,'sWittht3,'etc. 2. Nall Substation: Facilities Included are: (a) 138 KV lines (b) 200 MVA 138/69 autotransformer (c) 450 MVA, 345/138 KV autotransformer (d) 345 KV lines (e) associated breakers, bu! work, switches, etc.. 3. South East Bryan Substatioa: Facilities included are as follows: t , (a) 138 Mines (h) 200 MVA, 138/69 KV autotransformer (c) associated breakers, bus work, _'AWItcbcs,•,etc, - r !f r,' ; ra j llJr'at~'~ai , 1. Denton Plant: Facilittes Included are as follows: (a) 138 KV lines (b) associated breakers, bus work, switcbelt, etc. 2. Nonh Denton Substation: Facilities included are as follows: (a) 138 KV lines (b) 450 MVA, 345/138 KV autotransfotmer (c) associated breakers, bus work, switches, etc. Gadaod: 1. Apollo Substation: Facilities Included are as follows: (a) 138 KV interconnection with TP&L (b) associated breakers, bus work, switches, etc. 2. Oates Substation: Facilities included are as follows: (a) 138 KV Interconnectlons with TP&L (b) 450 MVA 345/138 KV autotransformer (c) 345 KV iinc6 (d) associated breakers, bus works, switches, etc, F-19 "'7577 3. Ben Davis Substation Facilities included are as follows: p, l t r (a) 450 MVA, 345/138 KV auto( ransiorrr.er (b) 345 KV lines (c) associated breakers, bus work, Mfltches, etc. 4. McCree Substation Facilities included are as follows: (a) 450 MVA, 345/138 KV autotrans(ormer (b) 345 KV lines (c) associated breakers, bus work, switcbea, etc. Greenville: 1, Steam Plant Facilities included are as follows: (a) 138 KV line j (b) 75 MVA, 138/69 KV autotrahstorrnet (c) associated breakers, bus work, switches, etc. 2. Diesel Plant r , Facilities included are as follows: (a) 138 KV line (b) 75 MVA, 138/69 KV autotrar>sforfner (c) associated breakers, bus work, switches, etc. •.r:~~cs,~t •t.` %.Fi. Eel t~o2 ir,; 1 i.l i-;rn 1!::.;.':I1 'l:~1 r;i I r i ! h. l3f ~ •`6 r.4'r ~~2(j SCHEIDULE S RATES AND CHARGES (l) RATES FOR POWER AND ENERGY 't'he rates to be charged by the Agency for Power and Energy furnished to the Cities shall consist of a demand charge sad energy charge. These charges shall be based on cost of service to the degree that is practical. The costs used in developing cost of service rates shall be based on accounting entries as outlined in the Federal Power Commission's Uniform System of Accounts. The rates for demand charges shall be established to recover costs that are related to Debt R Service, (includ ng coverage ratios), other ordinarily predictable stable Operating and Maintenance. r Expenses and such other reasonable fixed costs as these costs relate to plant and transmission capacities utilized. The demand charges shall be based on the above listed costs in proportion to total KW that the Agency has evaiiabls. Proper consideration shall be given in the demand charges for such factors or coincident peak demands, diversity factors, load factors, etc. of the Cities, Energy charges shall be based on fuel rusts, operating personnel costs, variable Operating and Maintenance Expenses, postage stamp type transmission losses, station service energy, and other such reasonable variable costs as these costs relate to enemy provided to Cities. The rate making methods used to develop these demand and energy charges shall be consistent with standard utility wholesale rate making procedures. These methods shall be applied as appropriate to the System. { It is recognize9 that these rates shall be developed in a reasonably equivalent manner as •lmilar wholesale power suppliers, State Utility Commission guld6nea, and FPC rate regulations as applied to like power systems. III 1 (2) RATES FOR SERVICES PROVIDED TO ALL CITIES Vartrjs services shall be provided to all Cities as directed by the Board of Directors and will be paid for by the Cities at a rate per kilowatt-hour which shall be established from time to time by the Board of Directors. Each City's share of such charges shall be that portion of Phe total represented by the ratio of his share of the net energy for load to the total net energy for load of all of the Cities. Billingr will be made In advance on estimates of loads and paid evenly throughout the year. (3) RATES FOR SPECIAL SERVICES PROVIDED TO A SPECIFIC CITY Special services may be provided to a member from time to time at 'tfs request of a City, Reimbursement for these services will be mad.' at cost by the City receiving the services. E•21 N PRELIMINARY ORICIAL STATEMENT DATED MARCII 10 1978 ~-9SUE i f ) i l l In rho opinion of Counsel, interest OR the Bonds Is exempt from all present federal Income taxes under exI ring statutes, h1uladons, rulings and court decisions, as store fully set forth under "Tax Exemption" herein. a $291000,ODU* CITY OF DENTON; 'TEXAS r Electric Systgm.~ Revenue Refunding Bonds, Series' 1978' ` ~i The Bond4 ite'beirlg Issued by the City of Denton, Texas, to provide moneys which will bd k6ff9cteiit to refund the City's $16,902,o00 Outstanding Electric Revenue Bonds. The Bonds are payable from Net Revenues of i d the City's Electric 1.i81tt and Pgwer System (as defined in the Ordinance authorizIn ~ 8 iasur}ncp gLtlte •Donds). Dated: March 15, 1478 w Duet December It as shown below. N S Principal and interest (December 1, 1978 and each June 1 and December I thereafter) are payable at the option of the holder at First National Bank in Dallas, Dallas, Texas or at First State Bank, Denton, Texas. The Bonds will be Issued only as coupon bonds 19 ~ e~ rho i 1 n r prior to maturity as described herein. l ~k.~3~ ~i >Q4 $ S'l.a~° Bonds are subject to redemption z b V IT S11 HEDULE ~lll I~ 17 V f :'I+C: 01 1i 'rf ~'.':V/ ' :fri f''V't f 1 t nfrl l~' 116Ir7ri~ ~t': W {f , ZN~ i i r V (Accrual iR~rest Eon tib i~~cld) ~ ftrrvu`) kr,~pN _ r,;f ,,~_I,,tl ,~'1)!Ss'1)!! ~l~il;iiii.'•iE•.°I i l?l~lf i€ The Bonds are offered for delivery when, as and if issued and received NY the'l) ndg41ties, 41nd iubjw to, I an the unggmllfipdfaIWrival or.the.Attorney-General of the State of Tetras;.ogd,af,Messrs.•McCai1, parkbutstdc Horton LL £ , fllggOount;l, Dallas, Texas (whose approving opinion will be r I ~Q respect to arbltra ii t se of Messrs. Dewey, f3allantine, Btishb Palmergc Wood, aw t York N;ew Yorrk Sjwit/' 01 Counsel to the City (which will also be printed on the Bonds). Certain legal matters will be passed ~upon for the a Up., ;rwriter by Messrs, Dewey, Ballantine, Bushby, Palmer & Wood, New York, New York, Counsel to the . Underwriter. It is expected thto the Bonds will be available for delivery In New York City on or about March , 1978. n~~ i~G1f;'Ilfi~ .11~)ll.,}t g$ Goldman, Sachs & Coo (,3 11,0 Dillon, S I ~ to it Ir f ;efe°;'1 I Read & . Inc.' Stephcns, Inc. Dated: . , 1918 'Subject to change. <T.,I B .~>i~I.Y ~s~ T~4F ~ Ye' ~-~J .i01 ltif~.,F~ ?6.'{~!a! 1 ti`s s;p', r4 CITY OF DENTON, TEXAS t CITY CQVNC14 ~lyo[ JOE MITCHEI l........... Maycr Pro•Tem Coun man BILL NASH.. , ...,.s. .............Councilman RICH ARDISTEWART t a:, r.Cbuncilman 1 MARY G~LAUDB OAY :...s...... `r I .................:.........'..,Couriutv40tt1kA' A1'INIS7CtA7`1VE OE`F~C1 R5 Nome Paula r : sr , s 1 `g Chris Hartung 6tY Manager Jack Owen Assistant City Manager King Cole Assistant City Manager William H, Bryant Director of Finance R. E. Nelson Director of Utilities Brooks Holt City Secretary Pool Isham City Attorney ANT iNSUL.T McCALL, PARKHURST & HORTON, Dallas$ Texas .....Bond Counsel DEWBYj~BALLANTIIV,,.BIISIIBYb.:'~;-:II pedal `rax Cbunsel To The City PALMER4 WOOD, 14ew:Ydrk{ New .+S c s itbk Air. XANDEVORANf&'COMP'ANY I Aud s n, f , r. 1 1. ~iY. . n ~ FINANCIAL ADVISORS FIRST SOUTHWEST COMPANY.ar} i?l+=lli c Sltt}[YII It)a Mercantile San 8 ilding,~Dafts, xas 75201 The Price and other terms respecting the offering' aOwl' sale of the Bonds may be chanted from time to time by the Underwriters after such Bonds are released for sate, and such Bonds may be offered and sold at prime other than the initial offering price, Including sales to dealers who may sell thx Bonds Into lovestment accounts. In connection with the offering of the Blads, the Underwriters may ores-allot or effect transactions which stabilize of maintain the market price of the Bonds at a level above that which might otherwise prevail In the open market. Such stabhWng, If commenced, may be dascontiaued at any time. This Official Statement is submitted in connection with the safe of securities as referred to herein and may not be reproduced or be used, In whole or In part, for any oth-.r purpose. The delivery of this Official Statement at any time does not imply that information herein is correct as of any time sub"uent`to its date. k No dealer, salesman or any other person has been asithoriitd by the City to give any information or to make ' any represent`aG'4 other than as contained in this OFGcial $tat-ment in connection with the offering described herein and, if given or made, such other Information or 4rert;qtation must not be relied upon as having been authorized by any`of the foregoing, This OfAcial Statemeo does not constitute an offer of any Securities other than those described on the cover page or an offer to sell or a solicitation of an offer to buy in any jurisdiction in wthich ii is unlawful for such person to make such offer, solicitation or sale. TABLE OF CONTENTS a e INTtS00t1C71QN 1Z1FUNDIN0 SOURCE FLAN 4 t A~w`r~PPLICA't'1~ OP J'UNDS , ' 4 THtt GTY , J c:, ; r , AUTHORITY A k? SECURITY FOR 1 ..I. BONDS ' ' S , 6 It. AksadpTION .r.: , SCHEISUL9 OF DEBT SERVICE THE SYSTEM , , q Sr..rr .:h SUMMARY CERTAIF PstO ! u:i..1 9 OF LMGAT YISlONS OP THE OADINAh",E., IO r A I 16 AASENCE i .~l AS 70 R6FUNfNNO @ONDS; " ELt OlalLtTy AS INyE 25 STMENTl. . . UNDERWRITINO..., + . ,.....::r i 25 26 EXEMPTION ...i,............................. :'.i. TAX t~ MAtratt 26LEOA l^r. a .,i.....,Vr ! 1.rf.Il VXRIFICATIONOF . ' 1+............... :~ArHEMATiCAL COMP ~ r ~(7. {►'1t5CELLLANpOU E"rATlON9 ~ ......ra .F., ~7' T ~ If1~ u.~H../111. (rf~iNNY N...p fin I r 1. I n/•rr APPENDIX A ( .:1...... i+i.n.6n...:....~:....u..nt.. ny........ l....... 27 FINANCIAL STATEMENTS OF THE CITY APPENoix B Clry's ECONOMIC BACKUROUND, APPENDIX C - DORM OF LEGAL OPINION OF MESSRS. MCCALL, PAAKHURST do MORTON } APPENDIX D - FORM OF LEGAL OPINION, OP. M6sSRs. DEYVgy, BALLANUNE, 8"AHBY, PALMER Rte ,WOOD APPENDIX E POW¢R SALES CONTRACT 2 "i, t fftcient moneys will be available frbri the ptitdrf Phm~~ing incipa< of andf in lerest on the Fede 31 Bond. principal of and interest ailtheable to Ous pay 6U ay (begBondss Securities will not be available ery of Under an escrow agreement to bedtedahce do ~1 Ae of gent wil{ holdtand aaBonds dminisltr the Escrow Agreement") and between the City and the Escrow Agent will apply the maturing principal of and interest on the Federal e~and interest on thts of principal Of and Outstanding Bonds interest on the Outstanding Bonds, Since all yhtedts nt pr p will thereafter be provided for by the Escrow Agreements {lens, pledges and covenants of the Outstanding Bonds will, pursuant to applicable law, automatically terminate and be discharged and released. SOURCE AND APPLICATI,~ N? OFttF~}NDS The roceeds from the sale of the onds wtl~ •be applied as (oilows: SOURCE OF FUKns: r, , } I $ Principal Amount of Bonds Less Original Purchase Discount S Gross Bond Discount , . „ Nu• ;i . ' ; S Less Undtrw,riters' ''I I „ ' f 'Total 'Available Fu nds 1 f p IxI 'iii 1 J~pgLjtC~j1~$Tl r l~ • n~ ~a1 $ecurittes r E } s t ~51f~1 `I ~ert ~f~,,•It ~t Ir a.7 I~'~ 1 •l~ 11 ~ii~ 1t i , , J ° r 1 f 1 • y .ri1 rr1, }~i ~ra`UyE,rCY~r rid . t ~i.r~ • 71 • F. r1~31~`[lS'll ra4tln~t ~Y ~l~l~d rr~~ }tip. II, rt:! ,f I .,r,r~tl~ Yet Sit 'L i ° ?t(:= ' i 1f , . :Fit, ap P1 . fir' }~.,;.,ttlr ;lY~ 11 ,1:i1 t r r I r, Hof eg %r, ,T N, Paylog ,~.~.-r-j j1L 1~'r ; till a ~r I4 l e d tlv , tr r t`he ~it an~ inclining t}ets'tior ~eg~a1, fitiancf ` 11Y, n` , SQ ~onds ecd design, aggent rvices, computation and miscellanMus expenses of ssuartce• of r { if agent fe ser by Y p nd ~ q. lsi } on of Escrow Fund. acqu is~tl4(► 'rti t+rJ1j'. THE CITY r,t,i .yir l,G~Lt,G Is locsted Seat of The City 444t!{gfIYG1 Kb41 ndyIs miles from the Dallas-Fort Wor 8 onal Airrport The both 'downtown Dallps,t;gd,F,4. V , operates its electric system as . ,eparate utility. .h. pf4 dlit_7Et t~.(o[,tW4y~91- 5bar fad t ;4 a i t elW#.'.a i ~rMtYwCPirfl:~ (lIC ItlSftlbciw.of ~h►" T =o4.APP4o!d':a.lo this Ascitl Stet~mcpt~, } ~hA ttyiis g4vefJt~ by.A Yerrnt itaggeff ,4$r `.f4,~><fSh4F ~ r~r• aliQ CO~c ~n~aa t~4,Gtty,. $tau~►rx ~Q,g.$QnD ms (the The Bonds are being of which f i be b,fdtrfedf fr69fi he City or the St. Artid.e 11 Terms used "ACV') and the Ordinance, P ned fA, them iA ,{hk,grdtpanso, See r"StlMMary 4f Certain b in>rflP.pB#4 pff B i i it th~s,tii5~S11ati9nl~aXe{ f.~ ~ - I t• • ~ 1 .:l r, r , - A lR,v~s~Q tQf thq,Qrd~lion v. i err „ 1 „u i l r 'The Bonds, Ind he3 d OkId b4d the Pledged lRevtn es`ad def{ned to the Ordirta'ndt, h ch ildude` irrevocable first lien ropon 110 P 8 the City's Electric Light and Power System and may, in the future, at the initially he Net Revenues of op'Ion of the City, include other resources. S c-~..■ssss~ v} Series 1976 Retirement Fund Tbs Ordinance provides for the establichment at the First Nationai Bank In Dallas, Dallas, Icsss, as trustee And escrow agent, end as a paying agen for the Bonds, and accounted for separate and apart from all other finds of the City, a separate trust and escrow fund to be entitled the !'City of Denton Electric Revenue Refunding Bonds Series 1978 Retirement FurI (hereinafter called the "Retirement Fund"). The Retirement Fund shall be used solely for the purpose of paying the principal of and Interest On the Bonds as the some mature and come due, or on redemption prior to maturity, at the option of the, City, and.shall constitute a special sinking fund for the Bonds: Concurrently with or as soon es 1440cable after djlivery of the Bonds the City shall enter into a trust and escrow agreement with tho First National Bank In Dallas (hercinafter called the 1'Series 1978 Retire menl'Trust Agreement") which shall provide for thepaymgnt of the principal of and interest on the;horde as the same come due, and,the inv;:ament.io,Jovernment Obligatiras'of certain money depositbd.to tho-,, tedit of the Retirement. Fyod by Abet; Sy, Citibank, MA., New Yurk, New Y ork will be a party to the Series 1918 Retirement Trust Agreement for thq sole pprpose,of supplying certain Voyprnment Obligations as.aq investmeot for the.Retiroment Fund. The, City ahall,ma.ltq deposits to the credit of the Retirement Fund as provided in the Ordinance. If /additional Ponds Pro he-ceaftgr Issutd,'separate special invested retirement funds (similar; to the Retirement Fund) igay, pr may not be established, at the option .of the, City, fit the aerial benoftt of such Additional,,Oondr,,at a, paying agent the!efot but the. Retirement Fund Is crestted solely for,the benefit And security ortbe Bond;, It 4 provided, however, that all Bonds and Additional Bonds shall be equally end ratably secured,byand payabl,• fcolg the Pledged Revenues depositeJ to the credit of the,Pledged Revenue Fund, without prefergncq or. priority, an, the Bonds are entitled to an exclusive claim on the Retirement Find only after the deposits have been made therein as provided In this Ordinance. Under the Ordinance and the "1978 Retirement Trust Agreeplepf't;cbq h' f Ctt} will bt ~jegyire~ to, avf P rc ~ end 019, itt}l tlit ~istl~e t l Fund by Pgft?¢frl},,1985 Sh?~ e i)4~,PrIn91Q,,~ q oyn ,g~ 111 ~roms4~ 4~4 At i R~~n}eri fit rains Es! y cess of, oli gpgt{~r e,b tlQ ~y tAS An a, ?1~~ P 9n~a a 4 f a u~et (84b )j R lest °p&k, oVft!! 1 p 7.~PrFri~~Tl'~" a1+1~ SPA}flr?.:7 1 tl_I) N Te fl r'• I i,. _a. iildi,.i ! ~:i?. ,n. frt- . r1 , p ~ll}°" p4o toes flta Ib~ 4ty, ,ao nft~ 9r I ,y frity vftl q, b~~sir, matgtain 'arj3d cQll t sych' r t ar s atfd f ;6' t s 9e n a,v' bat t + he $ t 1 " t It 4e rk 4et 1A j t , Sb , 1 ylere owes ',X i gd4C . rg ftYfnPo! u 'iftF~t}~~e e r )sI Within Pl'f'r 1, 9 i.a ~u rs~!iito ~ti sr n rte n't' ~t~ S a p{~ ~f, ffrajj!!p1r F1 'teq 1 pE4`54~,.~RY~r'~,t °r pp ,Q u A a o nt q led$ odF 'vc I;Il ' f~luP11 n?ol ~~$:a$ tfa4jl :41,3 a Qtl.Qf wip'.~trioe f I -1, ik (1) the amount required. to be depook, by the0rdI $no to the credit of Ahs R.etiroment Fund during such yeor' plds -..,1 'r, :~r t.--j 111, 1 - 31 ,,r "'it ` i , r, , ~t.. III (2) the amount, if any, required to be deposited Dy a4 b? 16rit'e'br'dtdinkn'cel'alr(h'otiifng the issuance of Additional Bonds to the credit of any other special invested retirement fund or funds (similar to the Retiremiht Fund) for any outstanding Additional Bonds from Pledgild ae3en6ts161ha 31 ,,Pledged, Revenues Fund during such ycarrplus 1 tt trt)"th~e alverigea8ni~# prltiefpal add if~te~est teq"uirerhdnts ofaN (heA"outs(hddrrt~`Addilional Bonds, ifistiy, t4hl~jt'aVZ pajable'~irEctly'fIIthe Plfd' td s eVchdei' F~uifii'add foi tvhlrh'd6ttodil "lnvt'sf&~ ~reilrbrnbni TusSd' fslitiilat' (13'1th6 kbtllehi2fi4~ydIred''tiWn't'rea(b! arid'bsf'dbhihdd li'`An a~ otdtnihrre'kittAbritin~thd'fd33ito6'of`Ad~it(dtfel 8bfids'; N 1/'.a J ].iL'I J,i [ef Ch, 17+i1 i1't. Y"J x'",:r~ l.iL♦ 1"a l} co (ii) amounts sufficient to provide for the deposit s'rcquirtd by Sec{ions 18 and 19 of the Ordinance to be trade tdthe credit of theContingoncy Fund and the Improvement Fund, whichevar,of(i) or (li) is the greoleet 4 7 At .i d` ,i', t] 6 9l ru.; , , j -.r.j a 1I•; !It tr. :e(: i a'-i 1 r ~ i'~ 4 11i1Q1 A0#P1 ')b;. 0-r' I- 111110 y{i 11, 1 ;J+ L`q?a.f !I )tt IJ.'! . ,,1 7 y; a' l,:t Subject to the c)nditions and limitatlons set forth In the Ordinance, the City hag reserved the right under the Ordinance to issue, in accordance with law, at any time and for any lawful purpose, Additional floods which aye Nyable from and secured by a first lien on the Pledged Revenues. "Subject to change, 6 Reserve Fund Thb Ordlnance provides for the establishment of the Reserve Fund; solely for the further security and l benefit of the Bond! and anp'Addltional Bonds which ife payable from and secured by a first lien on and pledge of thb Pledged Revenues; The Reserve Fund'may be used soldy foth r acid of and infinally terest on any the last of tht Bonds and any outstanding Additional Bonds,' and (II) paying p land Bonds or Additional Bonds when and to the extent the amounts in the Retirement Fund, any special created to pay' any Additional Bonds, the Improvement Fund, and Contingency Fund are insufficient for such purpose, The Ordinance provides that promptly after the dellvery of tree Bonds the City shall cause to be deposited to the credit of the Reserve Fund; from proceeds from the Stie and delivery of the Bonds, the Amount of $2,250,000 (the'{Piswe Required Amount").'•H W and ab long as the money and investments in the'Resl Fund are dot less in market value than the Reser"' Required 'Amount no deposits need be ni to the credit of the Reserve Furd; but when a6d if the Reserve Fund at anytime contains less than tbd the'er Reateve Rct ulted Afriount; then; subject'and aubordinAtk to tr a~n g the required ditpi its (o theCity shred it of ter Rollrctitent Fudd dnd any deposits or payMenis tequired to pay Y Additi6lal fr6m. Pledged Aeveitud Add deposit to the efedit of the Reserve Fund, sermandualtr on or before the 25th dAv of each May and'each Novembers a $unl equal to 1 jl0th'of the Reserve Required Amount, until the c Rttierve' Fund il'restordd to the Reserve Re§ulred Amounts 'rho City speiilicalfy covutrlnts that it will, 6611 the 206 and 256'dayi of each May And of each November of Groh veal, dAoslt to the*crbdit'bf the Rever iA Flied all safptds in the tteservb Fund over the Iteserve' R'equi t'd' ArAount, to' W used solely rot paying 'WWI: operatio:'ahd inain{onadoa expenses of the Systetd;- ; ell ~3 eu to.>`~ e cetstinge Fa Ov4d~a'thal'Q1d ptt~3 artei "j~sd delivle~ ~t°tc dtas' ibiy`shall«' d~'~~ the The 'pltd`t'~to~t'ce ~r n t to c3F;o tditg Ai lbs de~oiftfd tb,'tc,€ddit It the'oi{#i gtbd t1's~~to thej4`~t'dtth~CF ontt'r1g~n of t "Cilittl~igenc~ aiinl tl`~''3f3b,ooa tV'dd~~oslls trdc~ amount of money and investments therein ,re at least equal in tl,irket value to 5250,0o0 (the Required Amount"). If and when the amouni the Contingency fund is reduced or %t~th.f f r iftc lred Conti ~a Requir~ Arno nt then, ect an %*Fo mateto y % nt R the l?o; , } F P d pajr elf dditfgnatB~~af 'hQ N"$ uCl~'s, itetf e~rrent`pdnrl' rt i `g, '~j ' reAt t# , bbi, R de ivi from b E u } tbd$ed Ited~h' ea sue' reduetl}t bepil~ a1~11 rea(b18d o~Sl eel eel h ts ' d b foi 1 a~em f'it pelt tiAY6ldg fSsiitv yy~~ IOt Aitt~t b'T ia{bd fof' ` i f ih 'y+'h'fk al' Jch f , e r h } t' RA ~ ognti qa1 y p~ovid~d'i~ C't't;' r '1~'is t requfreitd~~ di0 ~l , ur}i?ose during any one fiscal year. The it 1`hs i a venue y ~ tlC'iMCeily coVt'~ai1 s i',i,~ : IN Pdrid it surplus , epoa 1 days'oPeach°MUy &W ,or each Novombeto f esioh yizr,`d It t6 thkct in the Contingency Fund over the Contingency Required Amount, to be used solely for -paying 60rrent F, t l (,e 3r)li ;}i1 fir. 1, it L,i fl.) t sty PpsrNtip$ atld,~4►~t~!PASe,txp~fi~A o~ ~4 $Y lt} i rfefl it i 1itJ;' 1 i35{ '1; 11 S 1L~"!,' SiMPFP1elR?~4S~P~a'.,i'! i •r 1' i'I,!r f{ rll,li~ 4:It1, !r)!.'1, ^I The Ordinance provides that during tech year, subjec{ tdd srlbordlneW td making the a4 4iFcd d~dpsWts t p OP., Rµir tq1, N!'dr any depPgtu or pay.~s4ptf t q}i~red,tP pay 9Ry , 5149 , g , h4 cr4dit,P/fA) od R v es a Ott s a rpquird t de Ei, t, the the f~Sr9C i uP54,PAdtbq,~o4tJ4~Pc? F,Vr!$,ffool,P ;v f, e+* P 9f p djystgil Oross , F~ 1 4f Ilti;': mPrAY4,rPJt1,lF9 Go10R S'~Fo~4f3 P9 fi^Z ~u t '1"4 i f t $y1}4(~ ~R(frl year Revenues of t e System, which term is defigfq,tA Q?!!,}hA,SA E ,f, ~tP after deducting from such Orws Revenues an amount equal tote current expenses or operrtion and erii fab► the yeir which at* d!rWly ittributable to (I) crass 11'related to the val matdtenrnoi of the Systirim `attd/ot (0) h p6t0iiiii or Wood; cnerlgy lfy tir City -Addi excess Pledged blt eiterpi Y Rea Rcvenur. may, at the option of the City Council, be deposited to the credit of ti;e Improvement Fund as permitted by section 20(b) of the Ordinance, but no such add ItNNWdrpds NI tl!~ !'eqU fed. 3 DESCRIPTION OF BONDS, The Bonds 0AII bear interest at the rates and WWII mature ion the date and In the amount, subject to requirements for m ►ndatory tudem~tion t o t cover he Bonds will be r,yable on 0e6em6err~; 19 8 and rem nuafiyfe 9f aRdiOf 1 ale Statement. Interest on December t of each year. Principal, interest and redemption premium, if any, are payable, at the option of the holder, at First National Bank in Dallas, Dallas, Texas or First State Bank, Denton only as coupon bonds '1n'denominatioM of $goo each. ' • exxs. The Bonds will be issued Optional Redemption Provision The Bonds shall be redeemable, at the option of the City on or arter lune I, 1993 is a whole or In part on any Interest payment date, at par plus accruad interest to the redemption date,• Mandators, Redemption Provision The Bonds are subject to mandatory redemption, and shalt be redeemed Qrior to maturity on December I, E465, and annually on December I of each year thereafter, and chosen fof fedemption b lot or cthedu estomary method, at par and accrued interest to redemption date, in accordance with the folowin 8 War 1985..." ..,or 1987 .......................................r....../..r...r......r.r...,..rtM'I 1986 f 1 989............................... ................}.~4, - /.rr l/r 1•rr.r.•rr•rr/.•I/•/.r••r•rrr•rr//•r./r.........~..//•r /r r. •Irr.r)• .'r.r• .Ir•r/r••........./r.•,•/•r r••••rr•/rl•//•rr E992, ..........................................:art i 1993...................................................... .................................................................../...r..... '1 1995 r....................., 1997 - 1995... - 1995 / Itkvi 2001 2002 ................/....................4•'' --2003 2004 .aY: r - .r... . 2005 ..r.............,. yrA'~• 2003. - 2007 K ' 14" •11'x' 8 J SCHEDULE OF Ugl SERVICE REQUIREMENTS CITY OF DENTON Electric System RtrenUF Refundlnj B-)nds; Series 1976 Interest Year rAdlaj Principal Ralf lateral Total 1978 S % S 1979 1980 1981 1982 1:.-: t? 19$3: . 1984` 1985 , 1986 1987 1988 I .1991, , r 102, 199) 1994 1995 1996 1991 , 1498 1999 2000 2001 2002 2001 I k 2004 200$ ; 2006 2007 9 THE SYSTEM The ears wi h wned and'operaled it! se Electric'Light and Powcj gyFteiri 10~`}iFptoximeiely vtnty years without hout interruperruption. During this time the ystdAn has experlehced' a steridy` giowtli In customers and output, requiring periodic additions to plant and distribution facilititj. Present facilities are valued at 544,994,726 less accumulated dEpreclation of $17,667,170, Service Area The System provides 4iNtric service to 15,167 customers located in the City, The City has covenanted that it will not operate, and will not grant any franchise or permit the acquisition, construction, or operation of, aiy electric energy distribution facilities which would be in competition with the electric system, and, to the extent !hat it legally IhV ' the City will 1 rohibit any such competing facilities. .r Customers f In 19571 4he Denton Electric System sold 450,928,000 KWH of Electric finer following tabulati %n'sho ~s the average number of customers from 1975 through 1,977 and the av rag{e chajt a pe kilowatt by u (i KW14")" t3~ Yev ~ 'AHE*AGE NUMBER OF CUSTOMERS t97f t~~_-a _ .00 Residential. , i 11,030 11;$87 12,445 Coctmercial and 1 jdustrial r 2,038 2,2$4 20410 pfr,'t., r " X73 312 Total C slomers... 13,341 24 15,167 AVERAGE Ckitbg Nit KWH (cents per KWH) Residential hIIOthe r;, v 3.05 3.68 ,1A5 2.70 i t114 SysterjLSo's'Ye f ~f fir{ •1. , 'rFa.~ r.r ,r r; ±41 ~1 p ener~gyrr) KW , to pfi4 O customer classes fq 9 44to;~ 1p7~fr,f i. e~ ~ ' lM.r 1', 1{:, h'~. i al t{tx'a SOtI 9i 1a fit, ,'t ' ^r.. •1!t 1 rf!':, r r Residential........................................................... 105,203 112,701 133,931'r ! i' Comrnerclal and Industrial.......... i..,,,, , 276,168. }3 S _ 4thCf ' ` , 288,156, 245,011 # r ..................d,':,r,;,...., r 21x105 18,3191 Tofel gales -1,21960; 't " " L 40:,476 419,176 - 430$928 t N'1 addition d'r,fayldirg el"¢Q,'ti~ energy for customera in the City the City ;ai1~ ii w6olesiaje'satesiof tl 1 energy t.. bratos and other cities, aggregating 62,314,145, 64,274,239 abd 59",§ 14,502 kWt16Nhj 19 976 and 1977, respectively, The revenues received for such salts Burin the saMtJ*tidds'4ere $lifb $3, $700,$112 find $660,56rS trispectively,'''t.'' .Nttiq ;Ir;t) ..._i a 3rJ} ?f - -t ~ try6{ }k I 1° 1(~h ` .1 _ yr} ,1 10 .T."._ t The following chart provides infcrmation,for cakodar year 1977 for the System's ten largest curtomerws ms of boch a "ra Mk emend and annual revenues. These customers taken together represent i. , in tqr 9.396 of the 19Y7 rlectri ues from sales. . pENTON.tLECTRIC S'l3TE11f LARGEST POWER CUSTOMERS 1917Feek 1917A,uo14 ' Co,rtooier DeetN KW RaewH 15.0 `11 42084768 North Texas State University . , Texas Womans' Universlty........................................................ 5,009 772,761 Acme Brick Company.,. ............2,907 360,124 , Denton State School . , , . , , 2x242 276,557 Victor ~gpipment........... 0 92 26b,4 0 404 Moore Business Forms, Inca ! IEmconite, Division of Amerece 1,019 173,539 Morrison Milling Co, 826 121,960 Westgate IHospit........ ,.,r,. W 111,423 Flow Mrr,forial Hospital., 04100.04.'% 518 ; 108,098 11, STATISTICAL DATA, Yea EM44 Sntecber 30, ,],~I tS{.0~ (i''..fi 1971 1176^ 1 s 1914 1741 Sales Re KW1i. y t•.,t ,s Resid identi ,i 133,911 296 . 112,700,788 . I03. i,. i202j6 684,1 „ i ttl.r,.. 106,250,511 Commercial and industrial 295 016,03 288,126.1 99 276,167.91 1 A 997 I'll ,784 O,bQ3 3~7 7 425,12411112" 561 70 800 Muhlcf al Ad' So4i b 0h ' i A"191178 Other (resale) 39,514,502 64.274.239 62,314,745 122,530 & 8 94~ , 57,488 4 , Q2 TOTAL BILLING 4 3 7 97 471387,306 Loss and UnaFcoun~~{l , ,,v............• 15,669,069 18,229,747 24,636,240 27,886,949 Total KWH 4P,............ 509.376,042 488,6!7,033 75~_ 51308 211 % Loss and Unaccot1,41&d,,u....... 3.01% 3.15% 5.19% 5.44% ? s. Average Monthly , ;j Residentiafi ,....d...raL„6.,.... . 12,445.. 101117 11,030 10,850 Commercial and IndaetMal fii,, :S 2.4[0 204 2.038 ? 1,829 Total .r.ti 14,854 03,841 13,068. 12,619 Peak Day Power Requirement.. 112,GW 106,000 106,00`1 105,000 Prfsenl Plan Cap;~city 186,580 ~~4,58Q 184,,SE<0 16,580 0,111 p , t n 1 1t ~t141Y~k,V1,~t4tr14,Biliip'g.(,t',I~' ;:~jl, NiR9+ et~r;, Dfl! iflo6 I ij, i Average Monthly K .VII per Customer.. 2,406 o , 2,432 ' ? '2+33Q Bill P:r Customer..... $ 89.89 S 71.87 $ 56.81 S 42,54 Revenue per KWH... $ .0373 S .0298 S .0234 $ .0181 Reildrnllal Cuatonrtrr Average Monthly KWII per Customer.. 897 811 793 816 Bill per Customer S 37.90 S 29,81 S 2437 S 19.75 i Revenue per KWH S .0423 S .0368 S 0,310 S .0242 it STATISTICAL DATA (Costtog) Comnrrrclal and Industrial Avetage Monthly KWN Per Customer,. 10,201 Bill PerCjustomer !0,654 11,292 11,450 Revenue rKWH. $358,33 $288.09 $231,29 $177.70 Pe $ .0351 $ .0170 $ .0205 $ .0155 Grote Income: Residential , J S 5,660,433 S 41145,394 $ 3,251,863 ,512,051 Commercial and Industrial;,,,,,,,,,,,,,,,, Municipal and Street Lighting 10~7y0,S27 7,192,381 3,656,377 $ 3,900,264 Other .....,r . . 539,277 268,138 245,664 r l X894.273 _ 927.433 t 17 70 273 13 405 013 3 6 67 5011265 j 9___ s -1 ~1069 L 7?a4_ 1 ELECTRIC RATES WIDENUAL - i lEhecu~.SeeTlin6e~':', Is*isI ~,,•;~,t„1. . ! DaeOu W „ ' ift l+?~ r ~ ;Cl7~ti 4 d1 'I; lJ, 1'1 fCt ! First Sb K1~H Next 775IKW!H~•f~(I~i'rilmum 0409 Mtt j1t+tjtIJHt rr.;;rl;l;ar f ?f; err ,~i •„i= 1 u.} ~580KW 1 . 82 Pe , W Note; When usa a exceeds 700 KWH per month, billin is rendered at a tined Co KWH 6 $0.0275 per'~` 8 1~ u st of 54.40, plus all ll r: d+1?1~.r r.; { 111om11ber lluoYjh Alq, ' r,. First 30 K W11 Next 73KWN~ $3.Is(Minlmuln) Next 7$ KWH ` - .0409 per K WH All ad,Atiohal +-1 .0301 petKWl1 J.~, .0256 per KWlt Fuel Adjustment Clao~~'~'~ All charges of the n,et.monthly rate will be increased or dtxroaud'$0,0122 Ixt Oil $0,01 Per KWII by wblclt the KWH for each whole Average ICU of to CI Pled In the utiUty's a 1rlc generating plants plus The cost of purchased energy during the calendar month next preceding the billing month Is above or below $0.01 per KWI I. Such average cost Is determined based on the sum or net KWII nera i the K W11 p F a.soqdurjng each pad month. The colt of Y urchasQd en~rgy doei o fot puFchfi'~Cd 1 P 9 (l~,F!}p~ J rtcilu demandlY c ar ee w4r r'rT?nl'el ch~~pLi i' fr. • g J 1 !r. rr JI 1 'if Y < J. t r art, I 'I ' 1. I'A ,'311 [,,I 1•'it7il 'r, i; 1, •,I -~i rf '.y1'1,',1 ~,:rljl ,S1 Sri, r ~ ! ~ ! I; r., , . 1 ,:ykl ,,`I r) • fi . .v 1 r'. ,I ; r' 111 At' ! o I t1 r J I':tll lr t i,t ',71 f' , i ~ ~,I , ittr !2 t• Projected Loads and Resources The projected loads and resources of the System fer the perlnd 1978 through 1987 arc presented in the following chart. FORECASTED PEAK LOADS AND RESOURCES ON MECAWATFS} Net Reeer.e Lo~ie Rtwa!re+ Mesti~l~} Ptak 120 179 24 1918 135 179 16 1979,,,........... 150 179 8 1980...d,....t., r.....,. 162 192{1) 58 1981 r 174 267(2) 46 1982.....,....; , 167 2810) 3 201 281 24 19$3 1984 217 281 N.A. 1985 234 281 N.A. 1986 L ` 253 356(3) N.A. 1987 L.'' r f' . (1) Commanche Peak participation 13A MW in.1981, 13,4 MW In 1983 (2) Reflects participation in Gibbon Crock, 75 MW in 1982• (3) TMPA unit6scheduled in 10 year capital improvement plan (Denton share 75 MW) Summary of `Ofhr11198il; t tember 301 , V ~tmmarizes the operating results of the System for they ~ f 9, 1966 throng 4 {i• a i; ~'E t F ~7, '±4'; YNr )Il r}+";'i l %I 1~ ,.i! .`i(~ . Net I r ~ ! i t ~ i f rl ~ , Ended ~ fa ~~t' . y Se caber 30, Rernue _ERpetne 1966 S 3,072,862 $ 1,291,650 1,648 650 1961 3,167,9 3 ,,,1.-1,4488373 , 1968 30289,834 11579,948 1,109,886 11969- 4,001,273 11730,508 2,270,165',l' 20102,430 2,489A50,r` r; ,A 1970 4,591,880 2,252,483 217112 II } i .;1,i 1971 5,034,960 2,495,111 3,166,155 , t till, .1912 5,6610266 3,406,265 3,072,830 1973 6,479,095 3,469,372 1974 7,41.6,123 3,946,751 1975 9,763,787 6,476,667 3,287,116 ,,w~:i~ •"~+'~1916~`flEI„19,61~,Gj7 4,054,211 i t rrd . 5 269,6W 1477 17'942$16 r r'12,673,3161I 7 t~ rr CoYel~!'iind F'dtld 13ian~en' e t r`n tf : i} ri , , rr . a7..:,Y E: r rr,9,1' i"he ratio of tfia et tte cm foof the r such f scal ycartwa1"191 to4o o'. The ifln of ~~+e~~et~ enue of the service requirements of the Sy system for Olt same, 1 caul year through 1998 is annual 4,59 to one. Thanamount atrFebruary 1, 1919 in thesReserve ucd was 10, Bonds for he y were Fund ^~ndte nki ordinances pursuant to which nc t i t"" payment $6.577, er such payments to be ma'eetherefromtan Bonds Interest ordinances was Wi,668. U Production Facilities sad Inttreon"ll Arrangemeets Present production facilities' of the System consist of ten generating units described as follows: Type Nam" Pill N~,orUQ, C~~ citr KW Diesel 5 12,635 Steam Turbine 5 Unit t 12,650 Unit 2 POW. Unit 3 2'2,000 Unit a 6f iQ Unit S ..65.493 10 iit6,380. Denton's Electric Utility System is connected to the following other systems: Texas Power Light 1 671004 volt Circuit 2 1380000 yglt circuits (1979) l§raios1Eioct is Coope'r'etlvll 138,606 soli ilrl --*,[360 volt ciicuit'i ' ~he ~iiy is a tri"ber of the Texas tote fgnneottgn System, in inlra-stiite network of slay major investor-owned and four public syit~;~ t is, itpd oE~t 2 I tic Ike lablit o'urici! f Texas` RCO th t7bbiQ~i ill ` ylt ~i!'ty'> rpittafinr.. {r~ lion'jro'rbV`l "e c lsrgw~c~t t tnb fn' T'ei i(s Cyr ~'bai `1~~ fed addifio l.rgc tyltl4rQu is ~tsm1 [ll its iba~exl n cip` 'l I g Sf, *liich inci4du the nti ao f ryaA1 syr~itrt~fi Gteep►•{ el?nd pJy(~y~1 taco"of ilil ft fi fs ~~v(t pt d ( loli; irilionijsfor ,gn'y( distntiu~ C I,, f^u 1`h1d►~rf+~' 1 cbn'ri~t pfvidc i~i'f; ach'' xr' b~}tcit~ sl~aij pr'ovlde, thro~h i(sj f r' J it 1 own faciliti~!''~r ihriq h do ~otver~bitilY fs, d clpy 1, ~1' etiil'1 greater thin hs'prb)octcd system peak oar for e4chr fu re T me f Qa o Pion is unifa't fo 11 member' and the is of 'tfI , d tipto tiestbe[w flit b rb'p be{,i ~d'b~el[ tl~e partcips 'i ~~biErve f A! Z, r t!I !s ' ire t itf~ i! ~d'blt i c'g 'sbr ~y1 with coniild r bl i ' 1 st'alle`rejri%e power sli' fy, ihefeb`''66oknj Oulsstaitfal trer<~ryie l'r~h~b In:` ` p ay„"~ advantages Include ea adq'-eta and dependable source of power durin 9 "dividvat ono' Otto g periods of l'e erriei'tfggetcy'ai{d maintenitno of pelver, durin* periods ~f scheduled unit maintenance, rrl r }r n , r r r 1 J ! I 7rAi Syein' ctli feniSy ~grbases a ronimatbl 'olsits tlectrieal the, rgy 7 r{~!(emenif from lhb 1 cYari s a ips r `r'f hd i1 ' Tlitr g I 4, a ri ll , ~yqP111 d E st to $enfr# a thy $amo b eioy i~ithlnii' tpt Sy:te GI6`6b, .1 ll.rllj I{1.1 .tn . •)i r~ast~lagcf tb~ 2<rf{in ri yie:i'~;y~ n`lid a , r ~ d:r ti r _ r_f ) I11,!t, , rlo :.1 I! i r if J11 ~ I t. ri ,I ~ultird 5errfee'1lei~frth'i`eklj , ..t,:: !•<<, ~r t ~ r . ~rl, , „ . ~ ~ ~ , . The electric generating facilities of the System could' Ibe! expanded tc supply its electric power (54uJrer~nl4,thfP.wsb 19B,1i 4ltbouglj a,f.SF.h, P,{SP#SOd,byIMOP+tgfInelit mptIlt"tf oR tKhAl(, Ol' ibp City cq e1}tdei, 6111 It w'Jui,~ faHq~tttics9 09 OPT ~p4ff, the Systfpp; s genggipg f4e411tiSA;ArP now fluflo by n44HfA1 gPs4 ~►Ad t►re Tt1r,44 Rallre4¢,C9.gi►pI±4194 ~4 ~Q7 'sly 00 40 0(ov Ao 011 fleet~icggnpraling plag41 tie ~tal1?,niy:<f 9'1 Vt bS~ux9,J,anN41y~~R 1~1i1 4Pd 914.Pf~fAfk 1. 44rX,,{, 1~(1~ r,qQ `e lhejt' co>fsutnpt{q~, p~ opt,a/al #is byJA and, , risprgtlvety, below ih01r( 73 le f 4 i e r tat d ~4 of ~ Y,clq ut je, chFt r wal,1 fAt~r,,A f9~l~ 4 Y Pq',p ;eted,4y, g,T > ,4 vegtcjti (a►f Cjty' ~trlo engiQtec~ ~ontult4Rtt) cAgelud, tbal 1►1►4 largest [loam gaits Sul 9f Co!trert foe Id696 9Peta{lq~ u)in~ /t diesel ruFl `et .e ipsti 0SQQ,000, ! ~ t .I 'til r' r \j i iitl~ X19 tr~~,~ .f II '!S 't.l~, f, i , , I,. I 1,• ':a lry,arftAS,19 >P4et thr rcgtiitFpltn:; ot 11se W54$ ~'t0(OlwJ,t mif#jvn gfdf! and,tp provi0f for additional generating capacity, the City, together with three other Texas cities, Bryan, darland snd 14 f Greenville, organized the Texas Municipal Power Agency to develop an electric Onergy feria lting systint capable of in"ting the, needs of the, four cities through 1986, A T olr, part of this sy}tcm involvFs the development of a 400 megawatt lfgnfte fueled steam electric generating plant and the acquisition of a lignite strip mina and related facilities adjacent to the plant. The total cost of this project is estimated at approxfmaittily $786'million; W I Agency has to date issued $50 million dollars princlpal amount of its revenue bonds to finance the initial stages of the project. If the Agency completes the project, each of the four cities will be required, under i wor purchase contract already entered into, to purchase from the Agency all its electrical energy requlre'me~st in excess of the amount!iu'pplied solely, with certain exceptions, by the generating facilities owned by it on, September 1, i47d, and by , ei1.tfes in which the generation of electrical energy is incidental to solid waste disposal. The conslderauo i of such energy in the case of each M the four cities is its share of the Agericy'a sts, including debt service, on such city'r proportionate Oare of the total electrica, energy requirements or all four cities, which In' the City's case Is 20.34%. Each of the cities has guaranteed their proportionate share of the Agency's bonds. The cost to each of the citko would be incroaf+ed by its increased share of operating the facility (other than debt service) in the oven'4 one.ot more o: the cities, fails to Jige up tP iSs obGgatlons user the purchase contract. The contract, which is included as Appendix E to this Official Statement, contains provisions for, among other things, the approval or future prrojbcts of the Agency by the cities, joint approval of budgeting, alJ opefgtlgpp, pnd allocation pf, tti4 fh, ofgcy's power, output inthe event ofrsflprtage. The Agency's facility, which is now in tfie, initial sta es f conatrugi li n, is in Grimes Cou t Y. n late R 4 1 1! r r r r 1 i } q 1 19~ 7 l e Grirops Cou~it~ 1 ax Aygqrs Astdclk6on !thtouJili t q ouAly Altornexxrnd on' half of the S alto of. l~exas, irtit a lr rga4lo>~ in th! r f, eYa3 cos tartgkin t !I vahdit Crthe Y~iric~ its 'n4~ o n Y !tf -n r i 'r r ~,r r 1~, , anc><!adt! tlo i I ~t c rf h ! itf bpi~d,l bpi t jl u F n y utioraf'f!rn si~}ut..7c se, WE 1 r, J z s,}~i t,eegaulonzin ~oR Mot sYaibf¢r t'uynf;' !1+!1 i', If t'r h4 _ r y, r iIF~Y'..f, rrJ7 1"" , (ab as of u l l e Teic1!! 1'Court b lSp~tS. Th ' 0', , arW ors larlbdt;+ 2 1 7 , f~" wl Civil Appeals tend rsd judgement and filed its opinion under date of March 2, 1978, finding there was hu etrojr, in }hq judge men f tfle trig court,cad lift tlty ud cjnept of id eourl)jej a///1f t ~it ~ f r; and 1, • , i, r- t f ' t r fffff~~~~~ 777 r 1 t furih; thane rota ii, o nt'I r a~ rovers h,y fls1<i f~+b}irt,~ t o ~'4 r S'11 P i 1RJ I(2 i~Y7. ;Ui?t rl, t1 .r ) b7 ~ ! ! !i't.Ui i .pr~^A .'.l)J .1 Ch'r 11 br U ! J I zi, r r!!; r~ n n k r,. 1 r ~i i!nu i ,7t i! ,a ! i , nra !r l tit rf uY1 H~7 rx t ~str~tof~'fx ' f u~ rvfefv a t A e c , a d fil'ls't ~ andp ~ na] ' n 7 ~g .1 , 9 .~l~ $ !1 f s Y Jr,'J1 41r ,4!,. r o1m f o a1., , env ro } e o }r ? 5;~~' r f~?4~ ~ai91`d4, i~,mD,Y (r . ur h es ,i,~~t~si~gt<r~l ~-n~itP~►!>'4nt~1 ~;Y~~~f~~~?S~!~y~~7i2t~i~ Gillgl] I7 P.r 7~ 91~.i l.: "r~!!G11"~f{`J!l llaf.9t(;Up).~i. hrv `~I rri',fi(?`iiil tpr.~~4. .f.r fib rr'il IlT 1r i):fr ' }'!tt.r~~z.r J. While no prediction can be made as to ilie outcome ot+any particular tea action, the City At€orney or , tip it Pf t7ertto bell vet t t 4ntoriop~ of€nsei+pr s4vailabie to rusts a d~Qnfrm jud em nts of the r~ , 1, 11 r e ! Y f~' I t 1 rqq C11 fib f i. ~+w 1 ' t n rif,1 J ! tr actirti a►~d 1 e c feret a,'a avorpblel ¢uS~oskg~yaf ~Igen-i~nd C~it 1Q~eis~r 11 1 It flip II111JI t!F J 5 f7al U) [ r 1 G ~Irtt t 7 ° I r remote. tin addition, sad counsef'is o~the opiAijn ihll, even i the AaiO s ou l no Dfcv~il, t ee 1 X woo d have no contractual obligation In respect of the Agency other than't'o'coh f SC R alfoca~te 20.3496 bri(ort (averaging approxlroately $725,000 per year through 2011), of the debt service A JtAe, e44jWy'119 t4.0 in~ $50 million dollars of revenue bonds referred to above. wrid Cod ael, rot't4 J1Clfy'bf t)er1'(dArl'srdf ~l~a b~1h1tiR thet `such t~ity 1'~ `>S-ot'ollri#1 d 44dffthe P&di Sr1`dil'CbA[nc~t"wiiti Yhb A#bk~ to,'~ay~' o?6`tHit1'16i diw6blb~~20.349(f'(~irtSol'`'bf't}iddebf~tierVl2c J ('edult'e#fibtiti'dn'i~ A`g ~iC~++~'fx50 Ntiltidtirbf SQtld~`1~i th ` 'Il~Cth! WOO N bWW (d ltibe;`kadltldhal 666 ''tn'b'bAiplcte the I'rdjec! of ot~E~drf ' ~aifs'to cah'sf l`## t`'thd facl~lity dhd')i'roifide oW thb" froHt.'dohd ~lnlrb'n!'llisd 11~ of"tfit( 6"pYAibh''ihiiY,'iif!theged sl+dutd be Wd'ihshNd, o'i fi atii1ltel'b thd`Cit'~+ ~C th'e,F,~sib,' ~iE4b1d tb eo'rtief the rb~ ec=t 'th6 fo11ti''chilel w4eli!i`e'tei 4h`'Ai(V,)ttidl►ld the'j+ d~she; fd ptodEfd`ifi ~ctljl fn`eohcElt td' i~isi'tldi'tfie~f" ldolh'w"bf tl6liciEity"A' Wf iti'g clthl¢6dbj/t , Ai 1n anyed event¢, the management consultanti report ppreviously referred to concludes that the power that would ~t5 ib' tiq'pu~cHask frofif'the'A'glheyYs+blild hi u4chaiEi! fferh'' n'litbPis"lie"ybb~le'hf i IaitiliFi<f Fae 1.. If ) hl! l ll'd „f aHflf. ti!I tfh9 1.f r {1 A t a 11- iJ J - SUMMARY OF CERTAIN PROVISIONS, OF THE ORQINANCE There follows a summary of certain provisions _9f the Qrdinanoe• It does not ur and, for a full statement of all matters of fact relating to the Bonds and the rights ndd obligations of tye holders thereof, reference should be made to the Ordinance. Definition) . The term "Additional Bonds" means the additional bonds payable from and secured by a first lien on the Pledged Revenues permitted In the Ordinance to be outhorlted In the future, The terms "Electric Light and Power Syu.,m"and "System" mean the City's existing electric light ar►d power system, together with all future extensions, improvements, enlargements, anJ ddbitiohl theretb; !t~{d 01'replacemints thaleor; provided that; notwithstanding the foregoing, and to the extent now or beteafter adthoiized'or permitted by easy, the term Systen shall not ihean'any electric light and power facilities o(any kind (Including'any blectric power generatidg'and traiisrhisslon facilities) which are declared not to be a part of the System and which are acquired or constructed by the City with the p oceeda from t11~ Issuance of "Special Facilities Bonds", which are hereby defined as being special revenueQblijle(l6'iieof't~ietlh(Which are not, Bondi 61 Additional BdAds secuMd by and payable from A first lien on and Pledge of the Pledged Revenuet as hereinafter defined; but which are'secb'red by ahd payable from any other liens on and pledges of any tlvanued, YoutM or pdyfienta. IntludIng, but not limited to, (I) specialctatract revenues or psymenis received frord any other legal entity In connection tvlth such` ()Ties and/or'(li) alien on and pledge a tttt Pledged ~ Riven uts Johlot'ttnd subprdinxte'in all respects lien wgd'plcdge io furor 6( the Bonds and Additional Ilohds and stiob special contract revenues; or 1 ..lists shall not be considered as or constitute Gross RdvenM'bf the Avstem unless to'the*tent otMN%w!so (trovided to thq ordinance. gr ordination aulh6Nzing IN luuanedof sdchii'Spocial Facilities Aomhl' w; i-nj , y'Ji') 't ,I:n,,:ft y u ' ✓ f `si't tf I. ,.J°[{'ir ~,~fi :l[f: ~l;1 f, 1::' I 1n .;if;'i'~ ,r~~4 i r,:1 Vii" ,ir f, r: E~ ,.J l"J:~1 r The terms t'Orbbs Revetues of ahelCity's 8leclric Light and Power tSystem`l'tinl/ "Gross Reveeµes" mt>aii ail ret3eniles;'lnZottiei tidd rebolpta,of, evFlry'hilurb'derlved do ledelvedby.the 0k1rom{the"oprrat'idd and 004herahip'bf the "10mi latNdin j tbeinta*A Ih66I:na (roln the Inviestwtat dF deposit o(tbottey'{n ads r Farad 6*ite&bythTs Ordlnitttc vtc4tIAj, hey the Ratlrement Fund,'-'') + r;•r✓,yf, 911. .irt!!'N Ft", ?':'f J, 11 .7.iti• b~U •;ti1 .1 }.'i; .Yl 'CIE f:•r, „ 11;!'srra1: SI i![r1r r 1~ [ r This terms t.'Net Revenues of the City's FJON io Light and Power System"., an ONes Revenues", men ill Oross Revenbes'aildi deductidg'&Ad paying the`clrrrent ex0eenses or operation and maintenance of the System Includin j all kalarlesr labor; rhaictials, fepltlts;'add exteasions necessary to rtridO t(ficleat servieb; p06vided, howevei, that'dnly such lfpalrs'and tsxlens?eras,' ad In'theludgme'nt `of the City Council, reasonably And fairly exercised:by thb adoption - df, approoklit'r6bluil6ns 'are necessiiry to keep the 5yitem ld oberstlon hnd render adequate tbrvice t6 said City and the fnhabliants therebr, or such'ai might be decaeary toftneet some physical occident dF 6Aditloti which would dthetwheltnpalr the Bonds or'Additional Bondi; shall be'dedueted Ih ditlrmihl8g nNet Rivehtiea"l Depreciation shall haver be considered as an expense of 00eration and maintenances ; ~ l t: ~-I { ; > rr:nr tw l 3 }:lUIl7r°-i) rfl:),, no riid f;o is vl:l~i[;t The term "Pledged Revenues" means (1) the Net Revenues, plus ,tt (2)'any`gdditi`dial re4}hiled,lnddthe, reeeiptii, ol'bihEr` iesoUrces,including, WHhblfl limiaatlo», ally'~tatf{tt, donellon'a; 6i l:fcdl g'toeeivbd br io bd' eceIvM frbdi i~il hltdd Sdted dovtr h**M, b'r'S'fty ' tit 'fit ublic'dr' Sflva b'ab r ; tiehethettwi tiant tp ah ~~reertte~t oli ~th'ett4isC,'1~lifth ffl th!!~!i~rb f+tti~, wo tlKwAc pty p edged t 't7td' a ihleht'ot'the Bat♦ds' . od Additlonal fonds ' f ' Tlie ietin'`~y~!'Ar'''tftbahe lh'o`ftigulaf Bi At gear ir'fb~by WdtjIdebAd~etlbrr'>Zfth't}te 6nerntl6h 6r the System, which may be any twelve consecutive months period established by the City." 16 r~ Pledge of Revenues it rla(oif~ thereto, are secured by an The Bonds and any Additiunaof the P1EdgcdtRcve uesu Section B.) B irrevocable first lien on Rhd pledge Revenue Fund special The Ordinance provides for the establishment separate mand maintenance on the and apart from all o he rfunds of the City to which all fund ("Revenue Fund") , to be accounted Gross Revenues of the System are to be credited immediately upon receipt, unless otherwise providWrithe ordinance. All current expcnses.of operation and maintenance of the System are payable as a first charge against the Revenue Fund. (Section 9.) the ;pledged lterenues FUnd the Bonds ovinds nterest on ionai For the e, purpose of paying the the sourcepfor other ;payments and depositsn he U di)natnce provides as or the same come due, a nd 1 P fund ("Pledged Revenues Fund"). (Section 10.) eatablishmcnt and maintenaacx'of a separate , Serle1'1,910 ftetlreimerti Von . ; n Dallas, last Texas The Ordinance , and as a pthe estabbihment At the First Naonal Book aying ,ge t for the Bonds, and accounted foriseparate Andlapart from all trustee and escrow agent, p other funds of the City, a separeta tr?+ Fund~'h erelnaftetr, llhed~'tha "RetirementWFund")• The Rerundidg Bonds Series 1975 Retirement la the rinc I of and intetest on the Bonds as Ret'srtaocht Fund shall be use 90fely for the purpose of opas maturity, thAt tbq option' of tbt City, astd shall tine?time .mtaturb and come du(h•.dt on Adams. l6 Psi d' delivery Of constitute a specie) sidt{ngnter into ahtrust na and urtfvv pgeoet *itb'Of As at with then F<<R ~Natiotul lean iv~ of t the Bonds the City shat) a ment of std rust me cwmetdue ha ~he shall i tru~me t in Doti rstment (hereinafter ~o(d heinte "Sedes 19? de ReBond$ tirement the principal 11 Obtigatl 1 of costa l money ° will 130 a; pant ho Series 11974 R4 tom"t'Trust AgrOOMC4 01 the spkapurpose Or Ncw,Ygrkv New YoriK for supplying certain dit o the RetiremeatiFund as prov ded in the o* a nce 1f Add ionai Bonds areal w er s ued deposits to the coedit t issued" ssparata, special invested :.t'eticemant.tudds,ial bc4 f14Q~ h`Additiaad ForWsastt.; paY~g ascot Dot be that on b at o ogtm of the, City, spec able from the sccured by t d Pa, yt is from th proidoed; ho v r, that tA Ror4s sent fund created solely 0onds shall be equally -~nd cat bly security however, shat ail l deposited and Addittional Its have bean made Plods Fun tedBonds a"OUe s deposited t% lthe usire~claim otn the Retremen Fu d only after the posts a priority, and Revenue the Bonds arc i,d "tilled t an c lhetiut as provided in this Orde ~ tchased sands Ordinance in tfi~ R t4remeAt~ Fund tbyrusmbee~~t198S~ City 00 .be:.rog pr to have pu $17 500,0094 in principal amount of Government Obligations bearing interes!,at'retes in excess of the highest rate borne by the Bonds, and all Bonds will be secured ratably by 8'firsl lien on such Government Obligations. a , Reserve Fund he „ „f~k!erv olely u (or bheYf4rthcr security sl _le f 4 ¢~~i 1. 's lien on and T,kQtdinance provides fcr lheitlaa ishme4t w of ~lp t n seC red . Z rt f4•,1, t(tin ~gd,k1C9f~1~ R~ the,$gnds andY Add ,qai,Bond i yf4 P sib f e :d td it.evgnHc , a Re, rye F~Ut1~ '40" lY fqr ~h9.;Pt#r[~ o. ~1 r3Y fi nds or the pkdgs~ef 04 , tl n•r~x pr4ip+t~ 6f ,aqd,ltFr& o~ ~ ast of jiae_ , p~RJ 4 , ny , 14 4,01- list' Additional l Bonds %hen and to the extent the antounti the id n4mcv r~~~ endd, Ilic ~~i it XeFycnd afire AnyA 4r;'P ia) fund, created to P?Y Add¢ional B0A v ,h., P r, insufficient l'or such pyrrofe,;; 'x 1,_A Ilk 'Subject to change. 17 The Ordinance provides that promptly after the delivery of the Bonds the City shall cause to be deposited to the credit of tht Reserve. Puad; from proceeds from the sale and &livery of the Bonds, the amount of $2,25W,OW0, (the "Reserve Respired Amount"). When and so long as the money and investments in the Reserve Fund are not less in market value than the Reserve Required Amount no deposits need be made to the credit of the Reserve Fund, but when and if the Reserve Fund at any time contains less than the Reserve Required Amount, then, subject and subordinate to making the •equired deposits to the credit of the Retirement Fund and any deposits or payments required for any Additional Bonds, the City shatl transfer from Pledged Revenues and depos t to the credit of the Reserve Fund, semia.: nually on or before the 251h day of each,May and each, November, a sum equal to 1110th of the Reserve Regyirod Amouql, until the Reserve Fund Is restorol to the Restrve Required; Agtount,,N,City specifically coyerjan s t t will. between the 20th and 25th days of each January and of each 7uly of each year, deposit to the c redit~o fie Revenue Fund all surplus in the Reserve Fund over the Reserve Required Amounl.. (Sectlpps,11, sand ,17.) Coritlnjency Fund ~ Ip rie ar,vides for the Freatton and,rinaintenance of a separpte fund ("Conlingency fund"), to bo us solely fqf t o purpgsF of peyin$ the cos;p of unexpegtccl or 4xtraordinarr 'repairs or replacelnpnt; of At y'torn fos wlalgl Sviter 1`Nnds Grego} gthgrwlse tivai a~~e; end pnrlcip4i of arn3 interest Additional Bonds, when spa to the extcni the amount (n thp;its~edged Re'vea44 P' nd, tote RttiFerrgint Fund, any other special fund created to pay Additional Bonds, and the improvement Fund are Insufficient for iucF, purpose (Sections 12 and Ig.) iqt tov'm 'Fund i , u:r)'~i i' r., E -,+~i~ 1 7,t1<J t;; t 7;1'2 11 t', i"}'. i , The Ordinance provides for the creation and maintenance on the books of the Crt , a se "f mprpyfinenl. Ftj R5 )h P r Q~ In t e y pare.efund {the n¢"t ; ,bF NFad,#41elYf pose,o Y..,$ ;ti q~E1 of lm~provfinents.enlargetg4nO 44oe lggso 1*4000$9a 9lr„ Cher, ikpp~ {lu..~tf„relR Fp~43 ~ilFYi}M, 4{,l ~igR,pptx gntraof¢g►ttry ex it~ci 0 o r 1 n d (eq f ➢ t r gr ''°f M,. ~,49 M 411 4 ~f yF S 9 hick t u e a) E~~~'f,+4xfil.4b or 9 f. ~4r r m (ps 1 44 ~o ppYl ~ stag Pn'#~i{i4'4st 9i4 any 8an1 3 o~ or ~ ditwna l pods when 9 1 x,444 n~ 1 , 9,4n ,tf,► q 4r 4FF ~F , 11, , tlremJ6J dr:~n9 any ai1Fr~st~l1l,lu~ cf4~414r~e P.aY~let~~.;4f,A►uvna(~O{!~ art ~ntyt~rifto,S,34c14p1!f f -d :li7liw ~ 11 t)~{,;? 171 Ei lEri~2 7 +(:I))t37 I -te eL'~ The Ordinance provides that during each year, subject and subordinate to making the r Jequired eposrts to the credit of the Retirement Fund, any other deposits or payments _~quiihal be g~, n r~ J1 Reserve Fund, and the Cppgtinggency Fund from Pledged Revenues, the'Cttyf~requlr 6 dew li'toe tt'edit of the Irtipfove t!itf' 1"ddd'frb}N`pl dgtx1 R'eVrnu lA'''em ula'1`dQud~4d' gVdf Od 'Adi1r► dGross kiveht irof the System"'-whrch'terrii Is hert6 deflned td 'roearl'te h ` fotlowing,' the Grosse Kvvenb ;s of the System for such year gftet dodµcting from such Gross Revenues an amount equal to the current expenses of operation and mainten dco of the Svslfm for such.year which aN directly attributable to (i) all fuel costs related to the production of elecxrie energy by the City and/or (i1) the purchase of electric energy by the City, (Sections l3 and 19.) >1 H 1 1 n,N4 , , ~ ;"C i Ira i . 1 PrP~l44,.p~fdgSd~ReVepuef. InYestmen4„qf `ugds n + The Ordi,ianC6 requlres deposits of Pledged1ReVenues to be made into sire Relirpmdn:, Fsted; the ReseFva Fund, the Codtingency-Fund 4ndI the+imptbvbment' Furld cleated undee the Ordinanoo,iTbq Ordinance alto ptovides-thai mohey.ln any fund established persuint to thb Ordinance (escepUng the Retlromeht Piirtd, which shall bit invested only in Government obligations) may; at the option of the Cjly, bq pl"'id time ddposiu or certificates of ¢eposil'securgd by,-br invaRd in, direct obligations of,the Uqitod States of America, obligations guaranteed or insured by the United States which' to- the Opinion of thb Aticney Central of the United States are backed by its full faith and credit or represent Its general oblig-.ions, or indirect obligations of the United States of America; including evideacea of,ln4medness issued, ipsurad, 4~ q4frP,41 t by gtlvo ferue4t41 P#Fpclof, Slych inrtttmep ill v v aN by,oo,lily in ~ tlr ;s. ,1+,!p'1tY.71 ,ri r, h. i, +,1n 1~~,; 1 : n•, ,r ..'.f.,. t r, t terms of current market value eato the s will boo immediately ely Uc4iS~ to, spy lolski immediately debited to from such deposits. and rn w the fund from which the deposit or investment wad made, and surpluses in any fund shall or may be disposed or in the manner provided in the Ordinance with respect to such fund Such investmaits are to be sold promptly when necessary to prevent any default in connection with the Bonds sir Additional Bonds' (Section 14.) Security of Funds The Ordinance provides that money in all funds created under it, to the went not invested, is to be s,ecurcd'in the manner prescribed by law for 'securirgfunds of the City. (Section )S.) Debt'Servlfe Itequitemtnfa' The Ordinance provides that promptly after the delivery of the ponda the city,wjq cause, to be deposited to the credit oath Pledged Revenues Fund an ccrued interest received from the sale and delivery of the Sorlds. In additionthe City, wwill transfer from 2~jed Revenues in the Pledged ReveddZj Fuhd and 64* before the, lit day of oeccmbet, 1418 and "semiannually deposit'~o the credit of the Retireirien't'Fund, 00.60 before t he s1'days' of each Juhd and to December thereafter, such amounts as thlit`will pause to be od p sit to'thl Ct~dli `61"t4 RettsenS'en1 Ff09 : , (i) money and/or (ii) par or principal amount of Government Obligations owned by the City maiprieg not, r:{pr than November 1 S, 2007, and bearing interest at rates exceeding the highest rate borne by the Bonds, f,. r.~ ill .,-~~~ii.14 r f. i't,! t, C.li . ?nbunt,"r6iptctiVely, tlp Cec~ ~jfo;'}~fpecttbety, h01vn riN t 'khodulelt~i fo?th to the fg"g reoeling tbt'a ~ Or Me" ; Suld'schtdul f is lnterl~lddto ~t fo'rth the full a'g~teielst amovdl: whidt;a'fe 04ul ' to pibyldd'f~t d came Ye" ilia pp" a"yrrttri'tand'rpcmpti'Qtt'of the`P4 pal `of e1wintdf est hj{ ilte~o6'di'd3 the s tnd'tt5'a{ kid NoW4*1' it if'~diticipal~Ci it tti thteltdst 1',ls otb~ErM fi~otlie'~° titrt~d IM lf6tl`dc onited lro Ci6vieih'rfl rtl Obligatimns wii(reld c 41 the ar~t~ nls, , . the Pledged Revenues Fund I'd litde!`td'caifi L i6 itetiretritrit dnd t `cord`s ' e~UlPed air' gltttf arhrJdiit on each equired date a sho',n in said ute C~ ~i{6[ ItY X4`7'. 1)i 1 ~fil c Jqt ~ ',1 j~ i, ~ "lip t 7I I; t 7t r r 71', rf ..l!fi A i ~ ll ficli 1~oVl~ ea 1 ) h'1! ,-;u ! ! a n J,'J pi Plea }~l r: 7Z ir), ;?b9.6,0 an Ptor ~ PR (E,oq goY P~@si4n theffl 9 p ti f 4 Q1 P i9 4Y.c(lHfs>4 m#<lia. 9 required deposits into any ore p, tiflds te~~fgoQ t9 bc?YyF44. P islenPy,w}jl,by,m l4f pps.spo!ta1.P Irom tfie next available Pledged Revenues, or from any other sources available for such purpose, end that, subject to making (dn a timely basis) the roquifed deposits tb such funds, shy excess Pledged Revenues may be used for any lawful qurpost: (Section 10 ) ,'~1~, eh ) ,iii r_ .rs~ 11 1 .7 '1 fr1 Payment of Bonds ! The Ordinance provides that on or before December 1 1478, and aemi•annually ion or before nYach June I and December 1 thereafter while any of the Bo6ds`a}~outstdiddthg acid idpaid; available to tha payiA$ agents tweror, Out of the Retiremdnt Fund, any,other apgcial fund treated for the po moot or,aAy Additional Bonds, the' Pledged Revehuearpnnd,lor from the Impfovemont Fund, the Contingency>Fund! ot,the Reserve Fundi,if rvtctdaary,'moaey sufficient to pay.such interest on sod such principal df the B appertainin Bonds is will ihch aoctu0 or mature. The paying agents will destroy all paid Bonds and N eoupoAs g' thereto;, and, furnish the, City *ith an 1dppropriate certificate of+ canatlationl bt dditfuctloe~ Flaal D*%Itl; Governmental Obligations . 1 ' 1hebtainante'pf6vldtt ltiat gb'y%gond di•'Additibh'at`Bmnd'*' lfi bd detrKed {m'be paldjetfted; and fid longer outstanding when payment of the principal of and redemption premium, if any, on such Bond or 19 Additional Bond, plus interest thereon to the due date thereof (whether such due date be by reason of maturity, upois redemption, or'ot aerwise) either (i) shall have been made or caused to be made in accordance with the terry;; thcrtof (including the giving of any,required notice of redemption), or (ii) shall have been provided for bj irrevocably depositing with; or making available to, a paying agent therefor, in trust and irrevocably set aside exclusively for such payment, money sufficient to make Fisch payment or Government Obligations (as hereinafter de,aned) certified by an Independent public accounting firm of national reputation to mature as to principal and interest in such amounts and at such'timrs as will insure the availability, without reinvestment, of sufficient money to make such payment, and, In each case, all necessary and proper tees, compensation, and eiipenses o! such paying yam t pertalpIing tp the Bogdt a'nd Add#ional Bonds and with respect to which such deposit Is made shall have been paid or the p8ymerlt tli roof rovided for to the katisfsction of _sucb paying agent. At such time as a Bond or Additioial 99n 'is ' ict ed to be paid hereunder, as iforesald, it will no longer be !ecurfd 6y or entit)old t' the btn0ts of the'Ordinance or a lien on nd pie ge of t e Pledged Revenues, and shall ,bo csltitl, to payiilEnt solely* frdni' such money or overnment dbligatiops, (,Government Obligations lpr this purpose me4i dlrec!'obtigations of the sited States of America; including oallgAllons tbe-Odri ipal of and irterebs'on which Ara unconditionally guaranteed by the United States of Americe,'which may"be in book464ry faint and whicli are non-callable by the OblIption)Any moneys's3 deposise~ with' a pAyinB agent may At the direction of thit dty 9,14 be iavtsic& in Government Obligations, maturing in the amount and times as herciinbefore set forth, and all income from all Government Obligations in The hands of the paying agent pursuant to this Section whIACSIt'hdt r "ui?cd` for the payment of the Bonds aiid Additiortia) Botlds,`•tht rbdeMptiori oftmiurh, if wily, and f►;eeieat tlvtreon, with respect to which such money t;es been so deposited, will be turned over to the City or deposited as directed by the City, ,J 1,_ . i ~ (!~'i I ~pf iii 1 A/dltrdtsal Bond7...'i jr7 ` Pu 11061! (o thn 0idii hhce, the CH hies the H ht to nuthorrxe Iside slAd deliver IA brit bt Mote' rie!' o} 16sut~; additloAal 6bads.("Additipn'k1 $ti ds'~) riifb'May '4yabk'f'r~M li'lfr;t 116-dh the Piedjod e I:Auc A~ such'Ad' die h r Bonds 11 Y paabrE Irbni anduMd Iiy ttri Itl act bll>' lit`st lith brt th i?I~~aT o~etl ey, bgdaft F~I(abl o3i b . .1 W" h'v Bari s} dt 6W~v4 tstitddiiij A"dditf lie Bbddi.:'AlAddHlo `al ' 6l df, h1`dWoii'I bd Ui 'iv it' su h yp~lileip ) Q3l~'ysc td iott td bo' aid Cdr iitAl t'e,' lid all'ir,"{cf >j tlyrtytlti BMW C ' 3i~a rb `dd' JGi{!~' 'a'Ad D crnbdr`1 ~($Va,'di 3 1 fJ 5i,4f I i f, T7 i xJ .~r fl is~Z, lt~,' i r 1h;.l fll~~i 1~}~rl ha C)FdinAnot pfovtdo't lfiift'AdditidhAl`Bond!"itfd}t tie' IfM4 bnlyi fn'Ac2biddn4 wRK'th'c'drdinyncd' and law, in any amounts, far any lawful purpose, including the refunding of 9iiy9dnds of Additfohal Bondi: ` No Additional Bonds shall be issued or dellvered unless: tl MAYVr #nd, the, City $epr4iory of 00,C ty 618q a w 'tten certil`icaty to tpg e Cit s p41, ip ¢e(a 1t es to an ,c a t►1?{, cond'tl n , atj n }.o J~,9utst,igding; Y (a) 7h 4qa` of ds~ RdQy 9o p'n n 4i ori9 lame' i9 cPneayr a with al rat lh~t the sand h. i ,09 .4 I fl cfiA.. h, 7 g , ! d thtjl a Reilfeff 51#4 6Ad,Aoy sp~Flft~ fund.or f4}ir ii►fn3 pf.e(tY,A0itioitAl Bc4,dti flo04f, K,rv4 fy9'* ~fll 44atuinsatle„ amount then required to therein. (b) An Independent cert,8od public accountant, or Independent firm of certified public accountants, signs a written cenincate to the effect that, during either the next preceding year, or end o lwclva.consecutlve calendar month period ending not more than alaetydays prior to the passage or the ordlaance authorizing the, issuance of Of tbeo proposed A"llonal Bonds, tba P1odg4d Revenges *erg(, In hlvor,i s opirlloAt }j I I { ^ "'I (i)'ktleas(gi,s(s0,000,ifthed>'dinhhE4authorizlnjgtheli'suAnre'oft+dyAddiil6halN6dhis passed before September 30, 1918, which Is the end or the nest complete fiscal year'0;r(k City,) or, 20 E the tirdinancc authot;ang the issuance of any Additional Bonds s passed after (2) if at feast equal to 1.4 times the aggregate of tho Nitowin/ amounts; 30 he the amount actually deposited, as required by the Ordinance, to the credit of the Retirement Fund from Ptedgai Revenues in the Pledged Revenues Fund during 'such Year or twelve month periai, plus the amount, if any, actually deposited, as required by any ordinance of ordinances (ii) vuthorizing the issuance of Additional Bonds, to the credit of any other spxlal invested retitpment fpod u, funds (similar to the Retirement Fund) for any outstanding Additional Bonds from Pledged Revenues In thu Pledged Revenues fund during such yeat'ot twelve month rind plus (aid theveto G anit4l prinetial tad interest requsrs Hants of all Additional Bonds, if any, to be.9ut4Esndins after t e delivery of the titan ptopo Additiott1i 4onds, which Are payable direSCly rrom the 'la~gged Revenue~,Fund acid for which no spfcEai invested ritircmeni fun4 (sigljlar to the Retireme Fund) has been treated and, cftabblished by an ordsnancc`authgr zing the jssnttgce of Additional Bonds. Each Ordinance authorizing' the issuance of Additional Bonds is required to increase the Reserve Fund to providq an ,adequutg deb,} tergire reserve, for all,8onds and pidditignat Ponds, (Section 24.) Ct'rtatnt~orgnanls n the Orditlaoce the City further covenants and agrees that. . Performance ulations, The City will tn the Ordinance at all ordinance authoruing the issuance of Add,ititoaal Bon&t laid r Pronsi ens contained In the ~inancx and e d ro i r . e r .P} Y i Y 9 ~!iuse , fo ry r vfrY, ~4nd Arid ~~d ~it 40 0 e ~ c p toct,. a 4f and i e spa a . , such., ite;wi3n or► d. vS y.9gl1d,AOd ti nrl 94 R4 )hy. es' d 4 , t?4,rifli. A ptci"'Q i trittes3t bS a , i h ~(1' t s an )p tin ,f~ Y lc i~ rglgJpt*A VW,gR d>4, !!d:~,_ Woa1 P4'l ; Fn~E.95, 6~?Y r eE,,~ f,4i_lt►f , d iFt~ en,R Fu nX Al 4r u,nt4 u t s tQ R' u4trt Q. Ry dfpo;•it, 4>re p, eppE red ltl r ii 4 , ~4~ P1,41 f4~?.Ar,Q #<bfbisa~,F4t@nY5P 41,an t eiFi Ph }4. c~p'.?4fi.~n?PSOYsI.t?,S 43±Y.hply?H #t ~ Qlif" n. s,., a respect, or enforce th~ covenants and ohlrg~ons of the rNance e d it.), pr ink gotl+,oS~ iPB, } issuance of Additional Bonds, by all legal and equitable means, Including `pccifically,n ua attns uthi Clat} Us , th ,4)f And rl4k...pf ma>EdgtP s proFCi it?tia, n , X, }.R .F mlx:.sA ► v i 4 s fy, 2 a, o lid.anj 01pploYeCer ( :Ps►, .,4J. , 1. ,,1 City's Legal Authority `T}s'e'Cii~is~`du'IyirtakMande><lstinghonie'rule'eilyofth'al)dcif~5ntire'~ttp'ah(a a~thttizedunder the ance of th`e'Sthti! r t Etas !d Eteilte' t Ibv a thd'9~6ds; a thk nd`thi<f iW Abridi In the hands of ik h6lde`is and i 'co o~ (heBOjiiis a bden duty ahd tITebtrvtipp'taken, owHCf4'thefeof'It dhc!14;i U vaiid'i'nd enfoicea4ila'abllgati6ndot the City in accord:once with iheVierms. (Section 25) , TJlf~,, it .+yl '_~,ri f i,ES /+ifi U~J ~I 3 J~ J,4 ~,t+' The City; has or will obtain lawful thle to the lanais, buifdirigs, and facilitin'constiluting the System; It will defend suA iitlk &11 fight Igafnst alt t'sithi for tha benefit bf the hold►rs Ind tn'nerit of the Blinds and Additional B-Nnds; and it is lawfully qualif eA to pledge the Pledged Revenues to the bayme%vof the Bonds Ar►O. Add tignz>l .B04s, in,lho.mann4r provWcd;tt), the Af¢i9a1 4;and has fei~fplly exycised such tights. .,:j i 21 liens The City will pay and discharge on a timely basis all taxes, assessments, and gavernmental charges, if any, which shall be lawfully imposed upon it or the System; it will pay all lawful claims for rota, royalties, labor, materials, end, supplies which if unpaid might by law become a lien or charge on the System prior to or interfering with the lien of the Bonds and any Additional Bonds, and it *111 rot create orsuffer'to exist any lien or charge which might or could be prior to, or interfere with, the lien of the Bonds And Additional Bonds, or do or suffer any matter or thing'whereby such lien might or could be Impaired; provided, howevet, that no such tax, assessment, charge, or claim 'will be required to be paid so long as Its validity It being 'Masied in good faith by the City. (Section 25) dpor'awmri f de'S'y3rern' While the Bonds or any Additional Bonds are outstanding and unpaid, the City will cause the System j to be continuously and efficiently operated and maintained in good working order and at a reasop±sble, cost,, (Section 25.) I ii i I fr Vi f f Falr~itf ~'ncuhiAtrf~icf ' I +i fiJ7,;;P/7nJ.i J;tl6. II r.C~- 1+'a 1 l i % l!4te.th4 ~P443,Pr.,Any,Addationa1 -0onds a~p.Au4sl4rt4t48 +nd unpaid, the City will not. furthFt encumber the Pledged Revenues in any manner, except by liens or encumbrances junior 464 subordinate to the lien of the Bonds and any Additional Bonds provided for in the Ordinance. (Section 25.) Sole of Property f ! ; t, sW 1~i4,t 4 9t Rf finY A iti4Jlill~8 a3p 41 1 a p/14l NAI~, the,~t3y will gut 4fll, convey, n?<Q~tila$4, of I;e i<fY,{7!t'!4fs 9' Pj Pt4•Qr AtllfF+!!3e diFA0si9.t Systest► qr $PY s~8t!If ic@nt or aS~bPMn~►A1i ;th4~fd?~t.135A. 9d,EtMSlhP,, II ml}yet?}gketinyEla1?9fWo4i<de4rlts.n4PfsklY,Pf±sny,tq)or persoaal'property, inachinery, fixtures, or oquipmen)i,whcp,it.h4R mgdf'1rtogp8!'letttAlsq repj;%,it or provide a substitute therefor, unless the City Council determines by resolution that no such replacement or sUb,iltdtb is RVS)'~f .~i i7J ll4 ~r~t ~'jt J1" 1, If"i 'fl l'l'; . Al lnlUrdllyV'.f 1 i7f, ~It 317 tt :e`- eL ~ il,7flN t , .~I'ti lu:'{ 'A~~ r) 1ii ~4 t"" [I tJII,. ft will carry or cause to be carried, with `iiesbo~t'l6fiettsutiici~eb`hip'enS ~ar`bipit;tf, #ul h7ni 6iance a~..#~~•4~~lA~lyWri tITT, r#99g}~,f,gSl,ut S 4N SF~~fy>~t~t~}ifs,PRS~AtJl~,11 4.pj9 AtApoFrts' i(I, s'f~lEar<c~Y~tst~lc,bpbtt#4,¢p/APf,4a9~fyl!>sbla.ia~,~,cra~J~ai f,b}y,4ttor[iCY. glues a wruten op Mon. to the a ect that the luy s not Ilia a or c alms which woul'd~be prote4ted py,4yck~ Insurance. The City'ihall not bee required to carry insurance on construction work if a contractor therefor is responsible for such work and is required to carry appropriate insurance. All the City's 14ur4ace pglScl44 will be open to the Inspection of the owners or holders o,f the Bondstcad Additional l,Bondi anol their repPosepfatives'af'ali tea#tlna(ile't~rtled ' I1 {rl~i; F%i 11~',7~1lii s lif ! Hrirr flit f i Th' r6ty'A Mite d`uh'prroor'df lass'ln'i'es'kt"be AAA Insliteii'lbsA or' 6amage and do'e11 tht66 necessary or desirable to cause the Insuring companies to rr.ake paymat in full directly to the City. Thy proceeds of Insurance, together with any other funds necessary and available for such purpos:, will be used tot repair the property danteged or rdplaee the properly destroyed; exetjrt that if such proows and other funds are inluffidlent for such'pureoift shy such;insdtanoo prdeeMS pertaining to ti>c Symm will be'used;'A tmN -'I I ,art i4ph +.l NP itP?, ~t?11~1It I ~h!'Dl ~+1,, {irrf, , ,t~~,f9s,,4be tPUoli, fl,3~,,opgdp fnd Add#l~M~~n~~ {hen oyts}-odil►g an,~~m;ihlf~j the proportion that the total outstlnding prigdpni prAAcp lid ppµlpgding pqd fp0:e altia,bcar; tq, i11 total outstanding prlncf ral of all such bonds outstanding and redeemable, or (ii) if none of the outstanding Bonds or Additional Bonds is then redeemable, for the ppurchase'8'n the open:mltrkw and retirerficht of ehcb°settee and issuo of "Bonds and Additional+$onds then buislandiNde irl At proportion that tht total outstanding principal amount df eatgs'.'Kterkl'iirt istuel 22 I f .F r thereof bears to the total outstanding principal amount of all such series and issus, to the extent practicable, provided that the purchase price for any bond studs not txced Its redemption price on the first data upon which it becomes subject to redemption;` and . (iii) any such insuran ~pih eed`yetno ningd eign~ted~hed`'In uranco tAccount ratpcnd ~ogcuccds at an official r depository e or purchase of bonds as aforesaid, or the availability of EWnds sufficient with s p redemption to mako,the repairs or replacements, v,;h chever of said events occurs first, The annual audit required by the Ordinance will contain a list of all such insurance policies carried, together with a statement as to whether or not all Insurance prr.miums upon such polieiss have boop paid. (Section 25.) Rate' C0enonr rates, The City Council of the Sy will t all "Irricshas aare neecessaa ollprduce Gross, Revenuesn uffici trt, the use and availability of the System a at a together with any todu ~gsmRoootrof,Pledged Revdnu0' d9cti, year dt`leasttoqual to {i) 1 ''Braila the r.SI System; knd (2) 0 fr ~f , t,:,.. , aggregoie'of thb following anibttetsi' ' ' ' r w (1) the amount required to be deposited by this Ordinance to the credit of the Retirement fund during such year, plus I'(2)'"the`bllrn66al11,-'If of y, tZgtilred to 'bode pdaitetl 6y ls~~ otdirtatSt?e or otdinanceii a4thOrizing the 'istuist" of A'dditW41 flbt+dd to tit" todif, b` liray'Oitt''a~Mat"itivesidd fetirih*nt Wd O'NOJI' `id t (simllaP tdthe RetlrEii'I l F>3 fo?'#~j~eStaist[>{di4~ A4dtioi~ita rBbrids frdtri Pla1$e~ It~eWetiii I 11 f ,,tlrti.,r f. '1- Ple~$6d Revehit'tM ftin~'ddtln'$ stlclt yeit3, R ftlui Addti IF "1. .1 and Interest requiromonts.'. of a ft# rl N . t;1 ll+f{1 I'Vl lit ~'i Jl i 7'.,!.E~9 t'. S'!d rllu V+J 71f ) 7It! k¢?tild ~U}I, r.}f if the any which are pev b'o dirrectly from the Plledaed Revenues 1Fu od ah no sitc6ai Bonds, oaol i , Add~1itabtished.tly a'ce': Invested retirement fund (slmilltr to the Retirep. '(7menQ,pt1 M Fund' has been created and u 11J lil 1 arl pp,,T~,~II~i7117L') 1++1..1t+ ' , d n^re apihar~ ink th~l4;a~ sit(r1 i r~ ,h tlib di II iititti;3tits'suffclCnt't p t'~irthe r tr,F d,'`IW'61 t 71dr 0) (r ~tirida av~n~t eredit' ''bf t`'}'Co`ntin~~nc~ and' a~nd'~h°,l*~~„ t; t r~r ~cF l~b~~, C ~t 1 T• 1 rin:l, 1 {r.t,atr71 r, l1'_ Nd t~l~Idetrtl0ff~ , JI' . ,s , , y,,1 it u itaoin, cpi'tFug' tOn or The'City„wE} ilt not operate; and wilt not grant any franchise or pent, Qr, E,@ . IF operation of, any loct<l cle 'rical energy distribution facilities which wou be to competition with the t t rq iblt ~~Y }Su~~.COp??fting taclljt►fl'l catcp} that it 14~y~1y. mart t~► ,c►ty ,Y ll: p h . ,1, „J he City will keep proper books of rccotd+ and account .irt, which tu`r, ttut, apd e+srroct srstr}ts will All credo of all dealin to this Ordinance and any resolut otns authorizsinaithe ithe o i ddii onet Ponds; and all Rew created purwant t 'ail MA dvhilebtc for rates bb ~Qt relaiitt t't6edttb''titt'alf at >teasbn`able v,' books; docuhtents: itld vouchtrs $ F !t r .tl ✓ h bondhb(dit'(SBctloli 25) I 'i ' I,, lnsptctianU~S1N regtleat'Of a y~ i,f, I „ - I 1"'l, ljt, I i n, t, ,r . n tl Ilil ~4Nd,, After Jt f4y books W is ounu fof such year relating to the System and the plod god Mvrwes by an be mado of the 23 ---------'tea twwt Went ccrtitiW pubk accvunkans or an indopen0tnt firm e, vvitiIied public accountants, and as r,,on as w;,h audit has boca compfirod and, made availatstss to the a copy of such audit for the preceding year ,halt be nwikJ to the Slunk ipal Advisory Council of Tcsas and to any bondholders who shall so requett in *Fit I11S. such annual audit reports shall be open to the inspection of the owners or holders of the Bonds and ,additional Bonds and their agents and representatives at all reasonable times. (Section 25.) Gwrrnmenral Agencies The City wili comply v,itb a1! of the terms and conditions of,any'and all franchises, permits, and Agree tints applicable to the SyRenis and ltv Soo& or Addkianal Bonds entered into between the City and any governtnental ageyxy, and the tl sty Rate a?i sctrost aacettsary 't0 enforce Paid term's and conditions; fora sold affect ill franc I and then stY illaoplW to IsirW the eta# ja fnfl coastr0dId6,"opeecti't. permits, and other r ulre'stteitts, necessa Wit. r cgrisnition, and MAIntenarice bf 'the System. (Section 23") Arblr a=,r CU r3l) rtlake no use of the No.. "It tit the Don& at anytime throughout the term of the 601~a wh lyr a held been reasonatd} 1111 Ohl tw1 the data of delivery of the A,~ttrlt to and payment for the y ti purl ssers,,would tiat't CANt+•{ kht 1ltlntl► W N ribllfag0 M*ltklt *014 the, mooning of ccf e~ pf 11) Internal Key, '40 l';v 01104, 44 amakAtkti, of AD farEulali0nt 0 rtlfln$l P0141 j laser 'c' a pi s of the Uonds will not otborw~leo be usal ttirdctly or ttdlr4l{y W alb to Cause, all Pr illy {sari of the Bonds to be or Uaume arbitrage bonds within the meaning of the aforesold SNIInn I DS(c), ut idly regulations pertaining thercton. (Section 25.) Afneitibrrsent 'ot Otdinonce " ~A brdtaanee MR 6e AlTiend bYr tqe Cl(y. 40A t1}, i ptQJ~a) "f lie ~lQ0deft, of thr'Soa4s aid Ad gn~tl $and4 sgafekating 4196 n prist4ipal,gmourtt of t je s)=gref;ntp prii110pal, afnount Qf tM~+ oule,t ndtn$ 4nd~ a1t1d; Addiupt~Rj goods, ptovM, Iloweyct, that; no such, pincrtdment day; t r . . Make dtty change In the date %)f mfiturity `8f the outstandirtig Bondy dt IAA dit166AI Bonds-' e,(2): Reduvo the rate of interest borne by any of the outstanding Ponds st Additional Bonds;: , ~3~ "l e~pct~"t a krito`ynt yfl"lbe Prick ipal ptsygl~~ o'n fief o t a; 04_It no~r, A#dongtl 'p a1` ~ .~0>~, (4) Modifj"LM' fermi bf'payrtitlit`of 'pirinciphl'of,& in'tdreet dri ihi odisCd,Ming* Bonds' or Additional Bonds, or impose any conditions with respect to such pa Men'; ~~IYLlii.l:/tip. JilplClf;'.r Tf1l1ltIItI3't ii)Y.i'i (5) Affec+ the rights of, holders of less than all of the Ponds and tae Additional Ponds; or ' (6) Change the minimum pcrceritoge'of the principal amount of ojoisds and Additional Bonds nccetsary for oon~,ent to such amendment" i! The City will cause notice of any proposed amendment to be published in a financki newspaper or journal published in The City of NeW Ybtk,, NdW Ydrk, +ohl:e duritlg' each calendar week for at least two successive ca(cndsr,-tg", briefly sgting,fo;th,the nature of tbo proposed ttmendw.2mt and st4ting,that a ' Copythefcof 4 pn file at Ithf pri4ip4) o(fscy 1 the Payirig Agrtts for the Bonds and A.41 Iona] Bonds (fir rnspaetiorl tyaljl holders of aonQt,and Aody44t4ai Bonds. Such py4licsrtjoo isnot roquired, bov :vet, if notio4 A„writsp8,118~'F4 to eeftk bol4pr u( gads,Rpd Ad~Ft~onPl, Pond#, ,Wbencvor at Arty time qot kstt tbon lhlrly ~oY~S P4'1i3~Shi!1,oE!e yf~ fron?.t}te;clar4:o~ titq firs{'putt{icati4.n 4f said nRfice,or other fuvioo,of writ.4A 11p~f 9~,She,r y focSiyegqQ r }ltyrltt:rtt yr Iry4co 5rst#,, cukal by, hoikl;rs.gf.th; regviro plip441 Atnol+At, referring to the proposed amendment dcscribod In sold notice said specifically consenJjp&lo and,oppntyll►g such arnendmenl in substantltlly the form of the copy thereof on file, the City may adopt the amt Astory resolution in substa,ttially the sa.ne forma Upon any such adoption of an amendatory resolution, the 24 bss~" City in enad all ccordance~vith'uc>n,end` t°by rc'olut;on, an the holders of then outslanndifi end ds an resolut'on being aiitrnded will be dam10 o[ the amended the r«pective rights, duties, and obligations amondmsent,t thereafter be determ Additional Betids an all l rfutture Additional hereunder, su j iod of six monihr from the date of ect Any such consent given by a bondholder will be;rreviceable for a per on Ill future holders of the same the first notice but it meat shall be conclusive and binding, or by e ,e lePr11 be revoked at any ti `ne after six smonths uccessoruin t ttca e filing of by the first publication Of the bond during ' l amount of publication of such notice by Agents, units the holders of 5196 in aggga ~ thereof with the City and will, the Payiog outslandinlg Bonds and Additional Bonds as it this Section dcfined.havt, prior toshe attempt the then roved the amendment- revocation, consented to and app, ory evidence of the titin, fact, the purpose of effecting an amendment inch ma and the abed h and numsbers of such Bonds and older rovided by affidavit of the person c For laiming to be holding of Bonds or Additional Bonds by any , hgnk:►: c; any other depositM Additional Bonds, and the date of such holding, may be,V n lied on depositaith such,tru3► such holder, or bX a cerl'ificAte'excwtited by any trust eo entiompanYbank st or ds r Additional Bo>yds described lrt such rtiiVY, 662 1`4 whert'vof situated s~owilig'that'a( thy date therein' ned'{ucb per', b bank, banker; br other 'ae~o 4 ? , the 13 coilclusivtl ``assur4iE {fiat sdch ownors}i;p continl!CS tlritil writud aoict t the Cbritoat;s` ttd cbtnpany.ma , The Jtlty y upon 1ht (Section 60 h sA~ Proceeds of Sale whero after The Ordinance provides that Promptly NatioeaI deliver or the Bonds Bank in Dallas, allas` Texas Pwhso ch q at n' ed in First lid such kroeeeds; cis ~t '1 and delivery tbcreof will be d~posited ori' aurVd, lhd priecrysal of and Interest ate pay 'able on alt the Oudt:pol diti~sittdto t4sSonde ~ct- s;,a i it utA ndin Bands, (o'~'~indin~ OW It • ~o+~ds required id'ihe Ordltt~~ance to Da b'bt the t?lbdg lnteret discharglog, ahd rot;ring all op + g }a Bonds. th costs an : us<. ;asuance PI will be uxd roi' ibe pir OW of tcfunding,undr and for paying t the ity bas aukborixed the execution of "Escrow tb4 >epelvc.Fupd, pnd tljp CPntipge4. Y >e r ntenti' betaetn tho City and First ' National Bang In Dallas* athe the Ay a ,solution of the City Counct10 f even date with the Ordinance, g P the fore o[ g Proce<d}' a-NSp6cial Escrbv4 Fun3'Ag ee s ds, thi paYntcot of alb Fliers and expenses for the deposit with tha >0 ar oA eat of all o[ gent pcbvtd}n L,, , On 30 ) A t lnvt ,,ent<~tion a~ accr+i td Interest', e stment of part f aib' plots et matt er},Fetaling 1Q the traPa4c4iQR (fit r Pl issustit ,Q( the B. O$ and oth „ ABSENCE OF LITiGA[lON AS TO I2EFUNDiNG ~~Suostioniitg`the official ihrealened, q he k'riowScdge'of the Ctty, live offs, or the validity of the There is lid Litigation 'pending, of fo t city to ex;st Th of the City, or the true yf 1110 Pfficcri of the th r pet ity, and he !hi it of the City to issue the Bonds. or the power sOr nancety oftbaC ity to 1 Bonds, or the power rovidcd in the Ordinance. v., . ` fix, charge and collect rates !ur the services of the Systcrt as 1 ELIGIBILITY AS INVESTMENTS Tbt Bonds are legal and auth°tited idvBStMents for bank's, savings banks, crust cobdroP ton , I pub! C lions, Irisutance cdrn n'ds fiduciaries, and ttu'10hi ,and flit cbuntios; {chdbl district!; of other politia su end lose"assbciAiibns, savings did loan associ sts df anypublie ttihds'df the Stal6 theslnkirfg funds orcitles,'tbwns,'Villalei, tlbt'K ti encYbf the Seatc'lit I'eKas, Ind ~lfe tawral xstd ioiii ie agedties'of thli state df T0811. The BortYs alsb ate eligible to secure duos d Y bttma(ii?~,c0i' tns , , t an !liltsl srlbllivislail of p Market Vnlde' whe;i n'c itnicd by of Texali'O Y Pb thb'trxttnt'bi'thiit , i r t ~ secnrlty fo1'tbd"desits tb !S a UNDERWRI'f INC The Bonds are being purchases by the Underwriters for whom Goldman, Sachs & Co., Dillon, Read & Co. Inc. and Stephens, Inc, are acting as Managers. The Underwriting Agreement provides that all of the Bonds will be purchased by the respective Underwriters thereof if any are purchased. The City has agreed to indemnify the Underwriters against certain liabilities relating to this Official Statement as more clearly described in the Underwriting Agreement. I The Underwriters may offer and sell Bonds to certain dealers (including dealers depositing Bonds into investment trusts) and others at prices lower than the public offering prices stated on the cover page hereof. The compensation payable to the Underwriters Is sit forth tinder "Source and Applicatlon of Funds". TAX EXEMPTION Ih the opinion of McCall; Parkhurst &_Horton, Dallas, T;xii, B66d Counsel to tPiCity, Interest on the Borids ii titiript froi (present Podgy ral lncotnc~takes under existlog statuits, rc$ulatiQns; Finings uad court decisions, except that such firm was not requested to opine with tispect to the iti iiii of the 13cQs under Section 103(c) of the Internal {~cvtngyiC a ~i r gu jony~ard; wings rka}'pin ~o "arbitrage bonds and therefore has expfests' (18 dpihidn VA I t~bretd. Bbkd Ctbh{tlcl iltWly upon the opinion of j Special Tax Counsel to the City'; described io the' following paragraph, to the effect'that the Bonds ire not "arbitrage bonds'. within the me2ning of section 193(e) of the Internal Revenue Code and regulations and j rulings thereunder, The City will issatl Itsrertifi~Ate, to the effect that on the basis of the'(acts,tstimdtes Md.circomstancts in existence on the dat• of delivOyatbe Bonds it is AN 6xpd W thittit Odcebds'6f tho'Btlt ds will be used in a manner that would cause the Bonds to be "arbitrage bonds" under Section 103(0) of the Internal Revenue Code. In the opinion of Messrs. M'biff Ba1Id6tinat6u3hby, Palmer & Wood, New York, New York, Specipi Tax, Counsel to. lhf City, ,b9,e0 ,on their examination, of, the law ar,d thfir,mview 4f such certificate artd 41 v;ryficatjon by glfaandcr Grxnl &,Corrip>}py of cer4ai,q rnathematio4d,p'mputatioos, the fast,s,; fstjmates,and, circu tstancgs.ar4. #pfIjici9Akly.#Rt fggh; it such norBrbjtragc,trCrl{(iFatc, to satisfy the Sfj4erja which ?ff.rj4 4llry ,in4f(,Sec{106.10)(c) o(lhf,lrllcrpah Rfvrnue Coda of 19 4A !srricWed and I appbc!aIf ?'f.48ANrY,Regyl>ytron#i iCg.:sl+Pp9f~,tha~9sl~sl.~n,chi.ll~.~Qn~a~~l~,np>;.,~~rb~t~age,4~ad~, FPftbek t44y Ftatf,tbg4 n4, fyR,attff3,hpYS 54!p4 to, tkir, ftti+ti44P,!AhjS2lfi!?de~ti4iFai !3b f, qt irwrfo (bs rcpr,SS4Qtatjons.rPpd4 in,#ai o aril!tragf pSrijftCfit5• 4iraja Qf the prQPRF~,PWnio4 Pf>SpSRi TaxCopusr to the City as'attach!d hereto as Appcndi#,p i ' r r, 7 t,~,~° ~9.".~#, gCf,~li~ RQE~ .by,thf•.~;~Pf ~;fi14r#.?S, ~ ~#tbFlf 0t?fll A(igh~!'ss;w disc~;;.Mt,1r.,!bg oplpion of Special Tax Counsel to the City, the amount of such n4inal issue discount; r¢prcmn)a,jnli;,tepk, mi. the Bonds excludable from the income of the holders thereof for Federal income talc purposes to the same extent as lntcrest thereon repre#enled,by coupons, except as set forth in the following sentence. It is like)) that ille j amount of the original issue discount will be amortized for Federal income tax purposes ratably over the thirty year term of the B,,.ids. Any gain arising out of the sale, exchange, or mandatory or optional redemption prior to'the wat maturity of the Bonds In 2007, including the gain representing the larnfint lif unacerued disrouni, will be subject to Federal income tax. Purchasers of the Bonds should consult th-!ir owtl tax counsel. A, draft of the proposed opinion of Bond Counsel is arlached hereto as Appendix C. Wen.-rice should be made to said drafts of the Proposed OGinion of Bond Counsel and Special Tax Counsel to the City for :tit full contents thereof i I 26 r w ~i. LEGAL MATTERS Legal matters incident to the authorization, issuance and sale of the Bonds arc subject to the unqualified approval of the Attorney General of the State of Texas and of Messrs, McCall, Parkhurst Ilc Horto^• Dallas. Texas, Bond Counsel, whose approving opinion will be delivered with the Bonds. A draft of said approving opinion is attached hereto as Appendix C. Messrs. McCall, Parkhurst do Horton were not requested to participate, and did not take part in the preparation of the Official Statemert, and such firm has not assumed any responsibility with respect thercto or undertaken independently to verify any of the Information contained herein, except that, in its capacity as Bond Counsel such firm has reviewed the information under the captions "Refuno;ab Sourcvs and Application of Funds", "Authority ^nd Security for Bonds", "Description of Bonds", "Summary of Certain Erovisions of the Ordinance", "Taa.Exemption' , "Eligibility as Investments" and "Legal Matters" In the Official Statement. No person Is entitled to rely upon such firm's limited participation as an assumption of responsibility for, or an expression of opinion of any kind with rFgard to, the apcurapy or completeness of any other infprtnation contained, herein. Certain legal tnatters will be passed upon for the Vndeiwrhers by (Messrs. Dewey, Bailaatine, Bushby, Palmer, ec Wood, blew Yo`rli, New York, Counsel to tfle Undeiw6tere, V>RIFICAi`1bN 0)c,h1A'If1IfATCC. C(?hSfi'U1hA[~IS The accuracy of the mathematical computations orith respect to the adequacy of the maturingptincipal amounts of tjte Federal Securities to' pay; when' due; the principal of and interest and redemption promluM, If any, on the City's Outstanding Bonds and of the mathematical computations supporting the conclusion'oi Special Tax Counsel with reference to "arbitrage bonds" (noted above) will be verified by Alexander Grant A Company, cyrtified. pyblic,naountants. Such verifN,~tiva of malhematicsi computations a►ill be bgssd on information sul,pW by -the City. through the Fin"411.Advlsprs.. ; ~ rO'('.Q The tuthoritatiotls, agreeniehts' and covenanisi bf the bty'are'sA forth in the Otdininct authorizing the imusitda,of thi Bohds,'fid neither this Off dal Stlterntht nor any AdvertisemInt of the bonds is to be cOna'Nbd si'a contiiiet with the purchaseri of the Bcdcls., The references, excetpts and summaries contained hereln'of the Act, thi OrdinWt,'and`bther ddcumrnts'referrel tb herein do not purport`to be complete et'steriiants of the O'Woons of such`docurneriti, and referrim should bra imade to'ittcli''dodumtdls, ihich Grill be'futnished by thti City,?? the Uddei iteril 006e' ' (lest; for furthtf infoi•tnatioh.'Any,'sta imoti inide III chi ~fneisl St6fe"nfe~tt fnrolvlati`dialtdh'adi bpflifoh 6r of a fli;;ates, w4ober brtloi awsily to identified, are intended merely as such and not as representations of fact.'' )The City 600 NSF tbt Cf y'oi: Dtht6h h' ippedved this Official Stiteinenf by Ordinintce`bf t id City Couhcil'pbsdd on`Mirth ;,11978: 'J At-&V: CfrY oP'VENTb?+: TEXAS I , aQRQQXs H04-r EUNOR HuGllis Cl+~ SScrefary "fay'Pr, `27 A.. t I 6 APPENDIX A . Ire ~r~~rl7~~ ~ t 1' , : ~ t ; . E'1 { 1t (1 ` {11i N TtFN, 1 Vx A'k, tINANCIAL STATEMMIS'" - . I ' r 1 t , j i . ! , , N.: l l l t , r A s 7 , 4 ~ d • -i i + ?-RACAL YtEA91NDED SkPTEM6ER J• ! , 30, 19'17'' .c i z:rr~~)~ a :+c~ }4, "'srki;;•rrti~~ ~rrC.Y tJ;lr, jr) REPORTS OF ttRIlPlSQfPtlBUCFA'.'LOUNTANft 1 tr 1 ' r.+y •sYr rJtt; I:V"r"? c7r ,irrz•.tcf iITfJi1 •.a f.+ i:;!.; t tit .j it y+fl ri r)~_`d is +y~.1 'I i>(1 ij'~ X• 'f. 'W''.t f)J) ,:4 11ti'S;~ 'tl ~~.a t'•.. ''E f) '1^i A ,~li rlti F'jn r) 1: "s t_ijpif, (J •,a i X rjsri.v (lfr:'rt.r`.~,tt.~ uri f.3~tj, ~(:_r1iAlJli)(,j, .r1 •F(J117t.4) °r .l 1t '.Y7,ri •Jr ~ .~t;.,~ I;;. ~!!f'"l.f:'7(~1(}7'31; (.i)I'rs; ff9')t~f c!Jfi Y it c(j nu!. r, r 1• t ,crrri o 't ,t},t ~j~ii r~~t :r'•Ji ' { ! ~ ~ I :,f rr;8 _I 1, lti'1 (rt!clatt tcc+Jtr: 1+l III ( ( f•'Y;• cf,ifi'.5 lilt 13I it F?)7 I,;'; `.j(I1 if;, 1FJS~ Ic,tJ.f i,l"'t flf, t iC! f 1j Vi e( l lli, 'f ,rOf' T e j J1 ~rlojil!;10 lu3•;rualxi rt.i -~~t`~(9i:rfu rrt.R tirtJ, :'Jt!+11r,f,fgc) (1+3+I1 , ~''r,~UF~f~Y ",l1 grit rl.~. ~r J12.fci 31't(f~ 1f~,'Y Jflt 'IUi ilrijlJr~ €li',~'1!, r,+ " ? ' 11`f3 ~(;fiF cf."'+s•!;'~ yr. r. of Irl frh '1 r r ~ , ~t. 7~J: Yj.i_3'1~1; ~1IR'I'ci• j,~ i S.ifl '~~~r:l4Uf[I{Y'3 i-+Lr',1}!,f f tj!f.-J?.f e',ftgJ !i r?t) I i `A-' I Alexander Grant LIAII01IID FUILIC ACCOUNTANTS INTlNNATIONAL FIRM ! ALEXANDER ORANT TANSLEY WIMT 110nat'ahla Mayor and City Council City of Denton, Texas I We have examined the financial statements of the various funds and account groups of the City of Denton, Texas for the year ended September 30, 1977 as listed in the fcre- going table of contents, We have also examined those financial statements for the year ended September 30, 1976 listed in the table of contents. Our examinations were made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circum- stances, The net car ying vaiue of the electric system utility plant in service wa$ fnot;$ageo, to be appr}'aised replacement value, as dete~rmtotp by independent eonoLiting engineers at September 30, 1967 (NO a 4) 6; 1 m in excess of cost and he cliarstIng q, p ofoannualodepreciationVofueB $983,188 of such J140e0 ue directly to System than to expense, ti iltlk An conformit with Equity, rather accounting pill elp1 i, ad the rAisal ;valve ally accepted cost not bead reetlld d, the Utt Plant in ServiceeandeSystem Equity shown I V c 5ketem Fund would be reduced by stia, 019, 909 ,3t 1 p . t d6 t pt ember 30, 1977 and 1978, respact4OW is IscNssed in Note E, the City is a co-party defendant in an c~# h}h could fIquire it to honor its guarantee of car- tain 11 SU s s4 lot lie Ta us municipal power Agency. The ulti~- moreanutiVA lawsuit cannot be determined, and no provision yy l' sty that may result h ' financial 0 tfiento6 as been made in the accompanying In our opinion, except for the effects on the financial statements of the Slectric System Fund of the matter described In the second preceding paragraph, and subject to they effects, if any, on the 1977 financial statements of the resolution of the litigation described in the first preceding paragraph, the afore- mentioned financial statements present fairly the financial position of the various funds and account groups of the City of Denton, Texas, at September 30, 1977 and at September 30, 1976 and the results of their operations and the changes in financial position ot,the Enterprise Funds for the years than ended, in conformity with generally accepted accounting principles applied on a consistent basis. AA2 ONE MAIN PLACE DALLA$, TX 15250 (214) 7480100 Oui^ exitpAingi ~~►11a wope mado primarily for the purpose of fomulating the opintop Mated In thp,preceding paragraph. The supplemental information As set forth in the foregoing table of contents, although not considered necessary for a fair presentation of financial position, results of operations or changes to financial position is presented as supplemental infor- mation and bas been subjected to the audit procedures applied In the examination of the basic financial statements. In our opinion, the.,supplemOntaitinformation is fairly stated in all material respects in relaon to the basic financial statements taken as awhole. The statistical data: on pages 96 through 101. . hav been summarized from City records by City employees and was not sub Aegted t,i t# o audit procedures applied in the examination;. of the 4a,e c financial statemept.o. Accordingly, we do not express an,,, ( 4p pion on such information. Dallas, Texas i't' , , rJt;It;~~,, t•'` October 31, 1977 ~tl ,Fi u ( t f i? } r! 1 r , t~ 1 t. t (f.; t"l :rt (7 Y i i d+ l' , f City of Denton, Texas COMBINED BALANCE. SHEET - ALL FUNDS September 30 1977 General' ' Special Debt Capital General Revenue Service Projects ASSETS Fund rands Fund Funds Cash $ - $387,309 $168,601 $3,5410749 V Equity iw pdiolod Cash' 39,'413; Time deposits and accrued it~teiest i + 2;188 1,Oi0 .13;981 Receivables z het ' 381;`834 1399171 % 11 t 567E 911 Due from other funds 321, 233 4,753 ' +82}1}809 Inventories - - - - Prepaid expezkses' - - - Defer~bd c bt: on Loas L Star'•,Gasti - Restrict e0 assets - - - Property, plant and equipment - net Investment in other funds - - - - Amount of future require- ments for retirement of general debt - - - - Amount available for debt service - - - - $742,480 $531,365 $187,517 $4,691,290 i i r A11 t. Water and Intra- 'c'ruet Electric Sewer governmental and General system System Service Agency General fixed Fund Fund Funds Fund debt assets $ $ - v - $1811.886 $ - $ - 5?8, 036 - - 26, 821 3, 501 31807 i 22S'. - 3', . ` - 79, 307 166,433 97;419 - lj l40, 585 - 476,768 37,856 4g226 553 478 821 w JS IClI t,:. - 8,6290759 11351,151 27, 327, 556 11, 678, 359 1, 063, 018 - - 't r f^'2,b, ~~J58 R 582 jJ. 108'975 - ~ w w 1.470 11~7 $41,52511132 $13113129951 $2g2629835 $181,886 f12!024,000 . aa':`'258 582 bl;. rt# ttrlvt.aaciflJs!r~~ l:cri ,r ,v%) rler~ ` S~rtlfi?fi'3 )f`rfllt;tttS1 2 Qr f S'. rK: wt 1.1 { i ( ('1 1'1? {'.+3k: {.~ti Y'y [7 H fi'; tiff Ir`, nrr A-5 City of Denton, Texas COMBINED BALANCE SHEET - ALL FUNDS (CONTINUED) September 30, 1977 LIABILITIES, RESERVES, General CONTRIBUTIONS, FUND Special Debt Capital BALANCES AND General Revenue Service Projects RETAINED EARNINGS Fund Funds Fund Funds Deficit position in pooled cash $ - $ 1'7, 003 $ - $ Accounts payable and L. _ 258 281 accrued payroll 197,546 50,311 Liabilities payable from restricted _ assets Deposits ' - r -Accrued Lone: Star Gas payments Rebate payable to customers 9onded debt g,•! Due to other. funds 690 288 393,157 Reserves 386,278 30803 r Unrealized increment in valuat pqp utility p alit h _ service r - Investment` ~y'o`t6r { ~ 1.,n . _ ~ . dunc Ves` nt ih generial A... N.W.., fixed asseta 1. Contributions by munici- pality and governmental r agencies r Cohtributions in aid of _ construction - r Retained earnings Fund balances 8903r68 67,091 167,51 7 2t504,597 $742,480 $531,365 $167,517 $4,691,290 A-6 Water and Yntra- Trust Electric Sewer governmental and General System System Service Agency General fixed Fund Fund _ Funds Fund debt assets $ 31619; 043 $ 727, 021 $ 262t806 1,333,759 56,18 99x$18 X81,8$6, - i 1,50$41 354,449 197j212 , Le 1 t:,64 478,821 2050677 g,924 31 QQr2 24, 300 - 160902,000 614 0 ,9 401,768 1 6 731499 5 $ - r i l (illVt e ) L 2,019,909 - - 2Q,~258, 582 2;?1 ,"412 r _ _ >rs, t ka, _ - r r - r r 7,965f`780, (12, 860) 615,396 r _ $410525,132 $13,3129951 $2,262,835 $1810886 $12,024,000 $20,258,582 A-! 1. tom" City of Denton, Texas General Fund BALANCE SHEET September 30, 1977 and 1976 ASSETS 1977 1976 Equity in pooled caoh (Rote B) $ 390413 $211,042 387,463 336875 Delinquent taxes receivablq (No,Lq, A) Miscellaneous accounts reccivable'(net of allowance for d9,lb Sul acQynta Of $39 sio,000 in 1977 and$V,b00 in' 1979) 321,'23? 251216 Due from other funds _.tti. prepaid insurance $792,480 $5919518: Lit, ~A$„ RESERVA?;AND FUND B [C)1 ~L1TXF~, ~I I Accounts payable Accrued payroll and payroll taxes 152,871 117,900 690286 70,489 Due to other funds Total liabilities 2660834 22~0,4d~ r-~y 19,215 70924 Reserve for encumbrances 3670063 3360675 R~~erve for delinquent taxes ~g ~g ~Y 26, S',2 Fund balauce The accompanying notes are an integral part of this statea►ent. A•P City of DoPtgp,., Texas Generai .4nd STATFEt OF ES,.AND;$3:' ; EXPENDITURES ^ND ENCUNB'ANCE3 Years ended September 30, 1977 and 1976 Revised Actual Actual midget 1977 1976 - 1977 1--- Revonues Ganeral property taxes $10456 , 991 950, 89$ 909,.097 Current 50, c00 72, 978. F 5a:, p~0 t Delinquent i 1 `penalties and I90000 8, 58 Pv. j int~erest~ $ I I , Other 19371,281 19401,760 10295,824 revenues other taxes 983 802,830 Fees from revenue- 8350700 882332,,842 239,700 producing fc ilities 267,450 44,747 Fined and fees 46,185 ;.7,384 265 809 Licenses and permits 246 231 0 5 Miscellaneous 1 81811 1 7960780 1 583,258 Transfers from other llllvv ~e~b ~i~~ funds (Note D) B, Expenditures and 3,608,427 encumbrances 8890,92? 39884,490 391,726 Salaries and wages 425,136 433,107 581,028 Supplies 573,993 6180415 '!38,902 Maintenanco 840,939 840,723 8,169 services 14,586 16,823 119,851 sundry 71,233 108,752 Capital outlay 1240780 ? Nondepartmental, 108,821 166,572 37 918 expenditures 811680 64,089 Insurance B-1 EXCESS (DEFICIT) OF REVENUES AND TRANSFERS OVER $ (311,681) E"ENDITURES AND 324 $ 620856 ENCUMBRANCES $ 123, ih 'lt~tl d'` Ar'e i _e_`}'e~l $a t -thijj`jdtkt;a~ted~ l' ThV1'1Lftb1►0nY A'-9' t~''` . AA City '6f r" O Putid hi, ~ ca's " GeneIhl dpf{A'NrE~`'`t8~lNBY BAANC`: Years ended September 30, 197.71and 1976 1077 1976 $26,812 $ 338 193, Balance at beginning of year Excess (defic}t) of revenue and. trAnsfers ovjz+ ~5~perldituils ~Kc~ ' ' (12,866 ,s Y (31~,; 681) einciimbrancee r------ $89 368 Y' r '26, 512 jcs At en4 Of .Yeart (oil 1, '•:V t t '..i}fit lr.,_,1 f)Il{i ,'a•)1,,1 i°. ).)ff'.T {1I"l L rl'.t <t~ i+ 1 { E'r ! t7'f S r f ` r`f'1 f.'1'i° i ru r 0 f1AA Y t C Zrr ~ `f,. ~ f ry7~ 'p t,i 61 c~~~;lsilz~7t ii p"n Q a 1' ~0;1ift,=i1 "trxir~t7rir,r~ "Y .t u i 1 f7 r1 If O Q0 i !!~:/!11.111,: (~1 'iO .gV.341..'3 r r•t t't' ( M 'C,~~T`~)~TiSi~llt.lf`)''4ir t r n,.t.teg>rala party o! ;xh~~,sat~~aenx► Arlo City of Denton;: Texas General. Fund STATEMENT:OF'BUDGETED: AND ACTUAL gREVENUEB AND TRAN©FERS,; Year ended September 30, 1977 r Revived Actual budget Actual prior year TA XES Current $104569991 $10450,848 959;307 Delinquent 50, 000 72,978 , . !690090 Penalties and interest r.: 19 000 28,580 t r r , , ;,],80..$33 175570-40 OTHER TAXES ! •Sales i,; •i,. tIV-1750 000 1,197,962. ; ;1,180;112 `'~Franehirae -Lone ,~r+~ ,,•t,.; , '!0 gtar Gas C6': .760 880 78, 880 ,i'47487 r„FrgKChise -46hd al , Tolephone (Cd 600(+!',l 600051 3r , 540037 "'Mixed bevergO16; 450 19 6753 jr304 Hotel occupancy tax 43j000 . Pi. J11471.192, 15'884 71 231 y 7-G FEES FROM REVENUE- PRODUCING FACILITIES UtOJ N, R r t't ~1~: ? ,F 4 a Barba&e ctieirgLB - c.:+(i , s r{; ;,r i -r : t „ r , i • ; r; 0 residential6 t <04,900000 ~ X405;439 ; t n, •.402 511 t• , ;Garbage Ctfa&gerg o r..rrr~t,~:,~~q~ •.c ~;t:ir.i,^rsut~ ,comnerciV21 0 WWA451 000 3370$97 ='j 129049 t !I i4 $*Lmming ~Qt}~i7r^ 000tr90000 110964E,lc,~ 1:q4,173 008,4emetery foko>All, 0orlC11)000 P110 Aa".- 0, E.ror, inr11233 aft ,066zfmunity%bAJildiLhg !E',0jfr ff o:F~ne,3 } sitri~.ti,1a 800 rent :tit 000 20000 bni2f907s;j w1f(I 87 Alrport +'1801 c +'r'-Cr 1~1t 500 l1_:11~ 473 t,:W G0bage pciAlty W M1 120 750 s 5, 350) +3 i 'it '1 12 612 800 0 vial pickup u service 20 500 a3rir 4 )2;981'i t),2 r: • r20404 activity fee 32 000 43,242 31 688 835$ 7w -8544 # VOO Buzo "Jo FINES AND FEES ` Corporatior Court 250,000 284,646 220,492 Animal pound 60200 5,328 9,293 Automobile pound 40400 80814 4,438 Court coat service fee 650 871 10279 Police funeral escort and guard fees 6 200 6 183 4 ?190 s _a Ali City of Deatoni ! Texas General Fund , STATIOIVT OF BUDGETED' 'AND ACTUAL RVENURS ~AND'inNspgRS + r. (CONTINUED), Year ended September 300 1977 Revised Actual r bud#et' Actual_ prior year LICENSES AND PERMITS +Zotling permits A114 r, ::titidns € t'<? $1w),130600 $ 4,500 3 6; 450 Tak `certificates 120 750 30+100,, + 21,672 ,`SXeu'tt+ic and'$lWiVidg ! „ 1 , t r licenses 4,200 4,458 3,125 vital statistics 41500 50229 01 5;,377- ~guildittg peftit,4 t , 1 1301500 29,326 "9"59l `s Miscellaneous permits 12 500 1y345 t+iarl1807 ~'€LoAding`zondg',,N ts€ U100 2,201) i,:~ •.ci:+1,095 Garbage permits 120500 s,l&i 139 tap t lf:12; 338 kUdemont 1(70,x:;{ 250 250~.t~.~gR,f:rY 250 149x6avation &Ymits c< ~ 1 385 454--i:.wj6 })ox.222 4-flfi,rid and, bedY:lpi6ftits 000 C.1, s>J l~trr"cti)~:aU laTo1~ i 8`ffil;licend4d";lO',.I. ;B r:1bI ADD 1 68 42' D F :~{W313it ilU51'f all :4 MISCELLANEOUS ~,~z~ 1.11'JA'3 ~!z:~u raft's ParkAng taster recoipts 30000 - 4,!;344ra r)T¢tr! tr3ti8 ! i Ind'diric indodoMns wo, (3~900 5,;340 n~)f> teat 21860 Plumbing inspections 91000 11,13: s}r:~! r.4f 44(3 (11cot(fty fireVedoerC oooll-5),000 2,800vVwtuon; 5,830 e7stoeet cuts3.8("11 000,6 56;872; prr)rrm,62',462 a: 08(trits and c6ftessions 000 1 30 800 4100Q vioj4nt4;800 Matching funds 119,02~( 100#127YftnuriQly 408 VIGAdoline twifefund f) 0 tf: 500 465 jnrs c 908 F Wtddelleneotto 46(fome oor, AS, 060 33j089 t 7aq-80, 052 s)Sald of refxW,tta[gs 0,3~ 81",000 45,16721(1 age,cr 284381 kf6tgte and fdd4'r,&l grantsOOt ,S - , )tv zrr •a E{ 1r,10"2w08 2`48"s`231 r, 72$1' r70-206,110 8W)'If; StS,E~• 000,St ~1~4 tit~ll,n ?:3311 (lilt, ?Illy, 13 Fi?Sfi".J, G01:, ( ) L•rzr)~!r isnriril. i0:1 I. tff:,a 001, 1. f)rrt)aq ol1(fr.)rrolJill f?S,I i,8 W, t) )CVt+3F lsa5 i~r;so) 1,ro-)e fta7 ~r))ai ~):~ftc~1 ?I r) t IN. IZ w Clt1' 0f S►p4 ZNn, Texas Ilet`orill Nod A' 1`l I1sN'r OF HUAOra,a) 0, AOTAL RF•VWQKBa AIM TPANSFERB. E ONTI NUVID) Year ended September 30, 1077 Revised Actual budget _ r Actual prior year TRAN YRRS9; F1~.!N OTHER YUNDS $lootric System Fund Administrative ; 917 088 servicesi $ 46$+852 $ 4560968 $ Return on net •ti r s investment 1 (1 ; 8751 839 8550168 811,607 .Water and.Se"r 'system rund.. s . y Administi'stive serViol) 94 0, 155, 851 152p323 1390033 Return on net 206,009 investment #;,,'Trast Fund. ~1~~ ~ t 1$1 . it Hickory cr'epk Park 1;; 0 r Revenue sha!'inii 910 869 332 301 .f r, I ' , r, 4 k t, 16, ,699 $0,194,657 $5,288,098 l{ $61 J • f t i %f E: j > , ' % . 44 Tr 7. 1 ~ 4 c b , l .e _ 5 rr of (_tsn ~'4f W~ f) R.~ fj ~l4. i)~1 e-. rep fC i{.•'i ~W . 'AWA City bf Denton, Texas General lUnd STATjN9NtO1'' APPRbPAIATiOHS AND EXPEND11UR3 S AND tl(CUM18RANCES Year ended September 30, 1977 Expenditures Expenditures and Revised and encumbrancos appropriations encumbrances prior ar GENERAL GOVERNMENT r ; , r Salaries and wages $ 141,126 $ 1411806 $ 122,686 supplies '100170 10,067 140401 Maintenance 28,205 30,532 210112 Services 122o712 1-16,212 1060 372 Sundry 71525 8 , 853 15 881 Capital outlay 1,111 1, 256 10 566 Insurance 7j287 7130 4` 5j063 3I8rI0B 318,030 " 277t101 L£OAL JAPtiRTMENT Salaries and wages 82,603 82,320,: :.71,618 'Bu~Splie9 ".6,530 A 1j8566,032 Maintenance r 908 'J80s 1,1510 Services f 17,710 17,274 38,078 Sundr 2,67'8 21517 918 Capith outlay' 4j250! 41869 49501 Il~sMxgpce -~,Y 407 491 -II3 . 1290145 COKWUNITY DEVELOPMENT Salaries and wages 256,829 254,682 2630242 Supplies 15,952 18,171 18,073 Maintenance 8,394 90224 8,588 Services 21,340 23,600 17,964 E` Sundry 1, 485 1, 694 284 r Capital outlay 684 730 40361 Insurance uubp 818 _ M 13 2 In 3 CIVIL DEFENSE Salaries ani wages 27,740 27,137 230P14 Supplies 10581 10640 1,387 Maintenance 31053 30386 1,875 Services 2,908 3,020 30349 Sundry 10 18 1 Capital outlay 10500 1,588 1,878 Insurance 828 833 448 37t 1320 1328 A•14 city of Denton,; Z~xas= , General' °Fund, STATEMENT OF `APPROPRIATIONS'AND rE1pENDITURSg 'A (CONTINUED) ENCURBRANC'ES Ye4e ended September 30, 1977: RAvibed Expenditures Expenditures urea and a ropriat~ozjs, encumbrances encumbrances FINANCE ADMINISTRATION Prior year ' Salarie s and wagbs , . Supplies $ 81;644 'Haititenance, 654 $ 51,476 ;46,467 ~'Se~61CCa ! "108 631 t e «390 Sundry ' 4801 106 ,•,1 x,190 tit'ca ital outlay 16 1,791 r;1.878 piance r 200 156jtrr f l r ~~''388 .t 118 3,5 171 T AX, DBpARTMENT r ' 8alltries and r; Wa~Aa t' . - r~;J y"I 4` Bu' 11ee 50,17? t r r; Ft 4a dteaance,i y W r: 110; 300 4g, 761 1 "40i 903 ''''S8lvlces i'I•:,;;r r+':';350 ,181,',riJr iIn8,941 undry t (I., 3i 339 564 =.c,,,t . 11000 nCe , ~5 t~i~!<t 16 2, 81 ,.F.'t.,l0jay,~ r nbfira a i ~al outl~E3t 1 ; I" -j 450 18 E85r 3305 1 , - y~zs~ 211 bA~A'~ ~~'~Z3'd' ..529 pROCESSIft! jR ties audl*a es c ; + f,t11; Supplies 1111.91 S6, 517 ntenance"7 Ob0Si290 89,1!10 f1I1Ij080 Services r 1, 380 5, 385).,r ,;,,1,r gj g79 [ f 93 199 537 'Capital nceu 2' 900 92,126 v +~76 258 tlrtfi, t,! - 3,122: Iru.$j A04 S'Z 5 0ANI~'ATION - C!0 ~ 73 ! -00.1aries `~'TION 8Ubuppplies and't~es 837; 849 30~9f q0b "'Ifaintenance"~p 'A 84' , 310 1~, M +j 200; a70 Services t s !)ia! 800 97, 481 : rr r. 156`380 r~ Sundt r.I 70, 925 , 146 8aj'634 ISIM's, ova ttl { . r , 150 63, 745 l'r 681 787 Insurance s, 1j10 rtlt rrt a,T 91 8 743 8,1 98 5,178 332 6 0 1; -m A•f3 a,--- City of Denton, Texas General'.Fund STATEMENT Or! APPROPRIATION CO": DI'1.ORS8 :ANDEMCUMBRWIS Year ended September 30, 1:77 Expenditures Expenditures and Revised and encumbrances a ppropriatiorie'.:Qncumbrances prior ear SANITATION - DISPOSAL 461780 $ ~•45,033 ,37j877 t 5133 Salaries and 'Wag-6s g, 370 49324 288 Supplies r. 40,585 50, 842: j3t'268 C3~'lrtaintenance 30'050 31,584 18,104 8p~yices _ 325 I Capital outln 310 92 Insurance -fig (f ;;h Icy'', tip;{. `POLICE 888, 7!17 salaries and wages 925,125 942s520, 7r 120 Supplies 1. +t,;, C'r 83'?830 t?f,r40)150 4 ,938 i#1000 t t bigiintenance t 83s910 r, 0 j,084 83 982 r,-. ,cpsvices 4 s,. 12,517 180309 54 5 rt nce X11,918 1,9'!9 C0 <<,,b"r4 r12 930 1•r930 [ S Sununlr iry t t:,,43,055 t Capital outlay romijoi r s~? to~i RIGHT-OF-WAY 13, 244 13,14ka i"~ 12p'#Q,s~ Salaries and wages t,. ;~~y50 1,1234 ,,t r::t3 X43 uPi S~1Yiplies r` i?R W 040 s I ~iif rt;841 ~vMaintanance;,+, 179 ,a2 ,r tjij:'~58 ices .t 205 2 Ser : ,18 24 owl- s 535 st~~ it:5 q2L 11 s.f,illf~urance ~:r , ;~,nx:•i i PURCHASING g0, 248 etas ,CIA ' 6~~,7$ Salaries and wages ( p7.b:t: a<~x ~r.,2~3'dl ;"Supplies ,c?C)E: (D i) ,Q15 ' j204 ~ ~1.[rac rr108 t~.<,}liT►'tenance'i ,+~<'.I 3~80 g, 829~~tir;ir,•9a X204 pi}!} 5;'805 t,~.~89rvices <ttt ,~t~ ;.,,•,tv•t~~. 3 Vi4jtlidry 15 24 Insurance i}.t r 'JS)tSu.a ►O ) ms's BBi u<11 31il" ,A.16 City of Denton' Texas Goileral Fund W!Y TRMINT OF AMOPRIATIONS AVD' EXPENDITURES (AND +ENCUKBRANCE9 (CONTINUED) 1) Yaar endd"d September 301: 1977 Expenditures Expenditures and Revisedo - and encumbrances appropriations encumbrances prior year BILIANO AND COLLECTING 289 $ l?9,809 341nriee and wages $ -192j424 $ 198,43259 35,605 supplies r r ;.38,700 r 4 843 Maintenance 1,4J44 41485 Services J 9;370 9,807 11;367 Sundry 136 138 ? E5 ,,,capital outlay, ,1. t .:410 4,99 2;077 Insurance w -'V, x530 1,589 t {tE I,rr{870 ACCOUNTIN4 ;18,917 127-,511i; , t 27,139 8ala~ies andt~v~agee: . 2 +220 2,066 21268 supplies t C"2 1 i rl c1 .i r12~ 1 MAintenanee 1, i r it 4~ ~ 1,953 1,001 1, 83 'se~rVt~cesf,. AsJ4 .nr 0^1•141 Capital outlay c,,. 150 Inpurance ~I' t. , --,g4 3I°II PXRFJb '1NEL 36,141 r, v Ci8,~563 1 + J A 29X02 Salaries and wages 31863 0950 ?2,1 f7 4'; 808 supplies N 63". r. r s, 1r:1l;? 44 Maintenance 112 6, 352 [fl 1 9;179 Services ; t5; 939 J z! .li e w r .155 l;f' ' Jlk t 2 t.tt I'm ance ,y0 , fi'? lip ,l>i' a. i J r,' 292 Capital outlay' t l 41X289 1; 289 --735 --xs8 ~ ' : r rl$ i r95'. , f" 1 TRAFFIC CON'T'ROL Q . 54,'891 630606 51, 324 ~+~gA1`airiee and..tvii~ee` 3 650 Supplies 260948 n9V SODV°`F~W8 28~'8'12' ftaizitenance t11;+; r>t F:cf;g;(638 e'8;.494^rl e'it 004 s"~C fto aal l +1,+183 11550 . ! J24~ 359 t' outlaTy 1873 873 C, ),I': ! tan ~,3.. 7 f,'Yna~tt Dance °.1Ey , _,T,"g$Z3.,18 ..-98"EII , , 1,~ r ^s; r e 001 rl,tJl.lr tr.~ i'Jt,'7 r!'y~. !'rrrti'1'1~51~ fjl( r N-17 City of Denton;- Texas General rFund STATEUMT 0F`APPR0PRIA'f1 ~ NTIAND ENCUMBRANCVS % l year 'ende'd September ; 30 1977 Expenditures Expenditures encumbrances Rev.4 5ed and ;a ro iations ;encumbrances prior Year FIRE '8759 ,145 $ 8731458 $ 802,441 •rSalaries and:v'ages $ 120,844 200954 ,18;837 '.Supplies j20i9 21,081 .21;038 r. Maintenance :3?,'741 34,830 26,253 33 , 3 Services 11,668 ??388 Sundry 448 082 208 .Capital outlay 7 203 0Insurance i ST'j'IET AND BRIDGE 1272r354 28Q;846 ,661,344 ,_;S~1aies and zftges t S 21 891 :~i. ~1;~269 Mtpplies i5;o0 tu.24,j 785 2889 214 Y W r'14640000 k.~ liNintenance 281, 860 206,131 , 16Ay 691 v o(t ! f241,~110 41;.,,, l r. cc~rwy s g~vicos t 500 . a0 691 1 867 ,sundry 600 9 Sun 321 (,Capital outlay x072 ,--,7328--- ~,Icance X~. . A1yAINISTRATION n(ANp PARKS ('1188j392 104,810 •)Dsl f:rc•k?7,A22 Salaries and gages 93f328 21, 536 r~ t~13;841 applies r 36, 818 24P667 21.481 Maintenance „171,205 341 107.; M) to 02$4318 227 Services 188 Y- 13,`A10263 13,487 10,316 S ~ P: Capital 4 9321li ~'.cr'3 O',gS1r 1Auto Insurance it, i., ~ ail fi { r: ~ rrt.~,~.j~'►~~~ ti,',. 11'808 PARIA;`;- 9MINUt+N0, POOL ;)x20003 19,596 1,161k).aries and;ltages 30 8,75 3410 623 etsupplias t ; ,3, 220 2j907 ,yin a8; 829 S Maintenance F, 2j713 20 329 3 a V1 800 1977 Capital outt1y453 4523 51 Insurance ~ Ana tier tbn t 3 Texaa' City of' 04noVal'F Ad 'ANU' ~Httild~iA!►~1C~ ' Yosv ended 8ebtehib6r 30;~~ 1977 Expenditures Expenditurew and Revi9e& -and encumbrances appropriations encumbrances prior year pABalariesCand wages $ 72,226 $ 77,878 fii~ sup 17j502 20,223 111716 1~aihtonaece 2,`860 2107138 r it 886 Services 61;4114 71,174 S9'83? 953 ut1A'}~ . u l "CA.pilal 4 Y'teiallCe 251 18f F, t 1 r ; '.223 LIBRARY Salaries and wages 120,152 1170608 104, 548 " c',,Bi ,1 ,19 166 ~ ~ 'lie x'00 9 s 1,892 754 ;i tt-~~pince aC, Or) t SF1, 298 27,017 services 0hj583 270198 70 17 ►1 buti~~',c~; ,-D'US . 1,420 464 ---ry8 AIRPORT supplies 31451 190 72 166 Maintenance 2J73 1,687 6,300 50150 1,293 Services 340 230 137 Sundry Capital outl;+.y 20000 34,943 5,149 11 ~ ~ ~a Insurance , A; M City: Ai, DptoA, ° TOXa(J; General, Fpod STATEWENT° OFr APPROPRIATION$.i' ~.X A Di ~'N~"11bl NQ s (C01!TINVEO) Year ended September 30,.:19'7.-. Expenditures Expenditures and Revised and encumbrances appropr),ations encumbrances prior year NONDEPARTMENTAL I ;z 6XpENDITURES•, Vity-county: health , 450 unit ser,yices $ 52, l00 $ 57,064 FA ,enter-agency, council 1 120 551 100 232 ~;101000 State grant: # - 5, 330 25,:742 t O~'j3acj-debts ;AAd,tit~ fr, I8'(;I miscellaneous 11800 47,461 21,924 i,':te'rt3 # Contribution to el,hamber :Q t:... i 11. CommercilR.1 ;I tt; ~),42,~~70 48+/,.4~~8(~/5 j _10j -6,44 t s F?Cj# 15'r V 4()£ v f rp I.rt'trs.t $5>i_57,p"$75 $6, 131;8Q11u$00t779 f~,ns ,gin. r;#, T i f~ ..f, i 1, 1y &I V k.t•`A r Eli t. , 000; , .1 sC f W" ON, 4E11-f J' S'hf, L , r'•sr (40, 1 W,f. e A-20 ti THIS PAGE LEFT BUkn, TI~NALLY; f{:` t .t ls.'i'.I lt- t A•21 Y n i y' 4"• ^'L" a ,'w 1M city of Denton* 'texas Special Revenue ponds 811BFTS BALANCE Septimber 30, 1977 V Total Memo ASSETS $387,30$ 2,388 Cash 4,753 Time deposits and accrued interest 13~17 Due from other funds Grants and entitlements receivable (Note A) - $531,385 y,,, r uY li7' LIAB116 i AND mND BALANCE $ 17,003 Deficit position in pooled cash (Note B) 48,974 1 337 Accounts PSYdble taxes 393 157 Accrued payroll and payroll Due to other funds i.' 3,803 Reserve for encumbrances 6 91 Fund balance $631,385 integral part of this atatet:ent The . accompanying noteb are an n•n '.r r , r is 77 r. . , ~ _ ! ! . ` is t 1 I F + S, a, i 11') Ei.' i„ Human Miscellaneous WM0101 Revenue Services special Justiua. f el t Sharing Proj6dt - t RevOnue Funde:,r $ $370p953 $ - :~18 X3581 I,ix?. 888 - , ,t r.1~ 600: k s 4j4Q8 t r JJ•<I~Z55 i!orJfit ITt3 6,a 123,330 712001 $10,9Hb 414959169 $7y455 I 1~,8 8.,, [Pit Lill, r 3f16t Y11: %1;a: ,1'~ ~,~a7 .,,'i!;<.•~ ~qrl i G'ru ~ t..t,,,,r i rf t1r'M ,i:(il .1~>i itita~'I.1:'if+ ~ti~t~,•f~',•t !t'•.l ;E,:~"i $ 90548 S£1$,,aS - $71456 n,-48767 207 1,337 - - - 39315?7r~Ar ne~Jt7t~: 1, 1V~OaD 441:924 • :S 2,498 r *,50.t, 147 •j 1i_I s [fa6',.3~3,;~y Ef)f;;,SEll E. f,rt[r'J .~li [t11~~,;J s)1 7~i~ ~nn'x't' $10,885 r.at~ $495,189 t~l Fs e 1~~ru,ifxr., ~t[r; f cE ~i s ~,8n~33 c,~3 f I'l' (:G`~ , E' c°J'_1f".$C~`:J [11,1': t:ll ExlJ`JF) r,fj`W't t.011 r Ir!f1~1i1 i? QI rflf [xJm3J,{rah J:: z):rnrcIW? IA.jJ City of Denton, Texas Special Revenue Funds STATEMENTS. OF CHANGES IN FUND BALANCE year ended September 30, 1977 Total Criminal (Memo) Justice Grant $2650304 $ - Balance at-.October 1, 1976: Additions t 88,158 38,328 r State giants 11979 Contribution from munibipality contribution from ciVL"`%!, 1, 5?1 organizations 1!,990 McKenna'"" Wust distributi'60 14,90 LibrArv..<lines and me,r,ials Kentai fees Civil Defense 258 " nirp:.ane 49265 Defensive driving course fees 813,238 _ Federal revenue distribution 28 001 ~ interest income , L IM peat/ t,ione z , 7 757 Sal rtes and wages 4{,` 4,852 1,321 Supplies I~Qlt•,`., 927 1 173 Maititenf~nce 850095 services ; t t 1611450 Capitr4p outlay - ...3~ , 301 " 'Transfer to General Fund aoa Tra 78, r.rii~fe~ "t0 f, Debt Service"Fund h to city4:040ty ion 750 fat COe"~agencies 846 Civil Defense airplane expen~os~ _ Defensive driving course expenses Balance at september 300 1977 $ 671091 $ The accompanying notes are an integral part of this statements 1A14 Mwo Human miscellaneous Trot ho yevspU0 Antirecession servicos special $ra~"Mt Assistance ! Pro Dot; Revenue Winds $253,973 $ $111331 qn I1It'i "!l36 k j- .^r, .ti.=j (f'J 28,800 7.'1'079 w _ 1. iU 1r',?t'.t 1 a,p990 14,171 r r r 2 58 40265 6070289 51947 r ~I'03'3 25,810 H 191 7ro-4 8';73'8 'Z$~S{f0 21, 033 8,138 13j755 569 2p962 r w r 227 r 690871 - 14,051 r • 1$8, ,103 - 198 10, 858 r 332,301 - " - 7 5 0 000 r ' r I 2020750 u 848 4 753 r r - ' 'ra $ 50,747 $ - $ $16,344 r.......r.~■ .ter... r~r "r""`~ A•13 r City of Denton, Texas Special Revenue Funds DETAIL OF MISCELLANEOUS SPECIAL REVENUE FUNDS BALANCE Year ended September 30, 1977 s ilk "Lions Olub Park ProJect $ s °,407 McKenfiA Park Fund Eetil Fowler Library a 243 , Fund 6 243 Clyde Wright Memorial Fund 8 Civil Defense Airplane Fund 261 Defensive Drividg,C4urse Fund - fj,663 NTSU tStudent Recreation Fund - 126 Denton Tennis Fund 10 Denton Garden Council Fund 10 Denton Insurance-Agents Crime-Fund 46 Bicentennial Organization Fund 10407 $16,344 o; i J 4!1 1 111 f" f 0 (14) Fly tt~ 101p 'W'r, .A•16 Ilk CltrY,.41, D04tgn,: Texas GOgq#'a, .bt ser a ,Hind j $.eDtor4bgr ;1977, ~8`i ASSETS ! 1977 1 C44hff f r4r f :>i .r ! "y~r~r t• t rl Jf yY 4~ { fiivle; depoeita aqd ~a,qcrued inte~~et 1 Q ~ .4 41+ r' ~ ' 11 iSf CfsJ fF;1 ,°r r 38 ' J?~ r t'._ . T`,4 sI (I" °r' F'UP1U BATaANCE Fund balance '10 $280,438 9' i v 01 qqxj 0.41'r8 f, 1 lei 1' altdJ • r ;~u l rtr! C,~~,~I ! t;,, r,1~ f .,rf [ s4rs'~ lo 10 fjrlf) tt+e:, 4FP a !.Y~~Bt 1~~ ~11,~ a ►A,r J ~ t~, '!F r PAATP~~,Qt,~F A•~i Pig t of pentn ! Texas'' Gend l Debit Ser;0 a 'Fund' STATEMENT OF REVENUE,` T&0tgbjYU)tt8 AND FUND BALANCE ~ . years e6de'd 6e'¢tdd"Iir 161,11077 'aAd 1976 t' 1977 1976 Rever►de- - egeted port 9n.o! taxes 85,911 $1,039?09 eate ~5 192 75 000 `:Intde3t d jndd on investmdnts' 76 000 ~'rans~er from revenue sharing _,88,~gjg gxBnndditures 561,000 610,000 Bonds retired 503,411 367,208 interest 691 805 "~77BI3 paying agent lees ;l p r,,Wl rW'Vi EM7sT2 rt ~;,Ls.~ is; Eik&SJ ~&FYCYT) OF REVENUE OVER (112,921) 182,028 EXPENUITURE8 2~ 8O 938 118 ,410 Fund balance at beginning of year - , 167,517 $ 280,438 Fund balance at end of year $ i 1;kg;r~~c'O~i(iaA~~.ag~ A-28 r , ` j THIS `Adi LUT BLANK INTENTIONALLY A-29 r City of Denton, To-sas Capital Projects Fsjnds BALANCE SHEETS September 30, 1977 lll''' 2~a Parks and ASSETS Total Recreation (Menlo) Bond Fund i Cash E ' 1749 867 $1'071, Time deposits and accrued interest $3x8130921 968 88 Due from other funds 827,809 Grant reimbursements receivable 330,162 _ Street ascOesments receivable, less allowance for uncollectible accounts of $93,638 177,849 _ $1,072,836 WAMUTIES, REST Z.yES t AND FUND BAV NCE Accounts payable $ 268,281 $ 68,946 Due to niher funds 547.221 Reserve for encumbrances 1,381,191 170,233 Fund balance 2:6____04,897 77 , $4,691,290 $1,012,835 The accompanying motes are an integral part of this statement, A-)b Stroot_ Community NTSU Street Virk9 Dev01600dt ` lmpro4i' bdt Development Special Assessment ud Bond Yhftid' Grant Fund Projects Fund Fund fltr., $7s ° M3 ,$22 ;698 $ 73~ $2;12, 3020 $ 12, 878 % $ ^ O,F35 51 3 108,$2$ ICI! 1.; ~ r r , f, !{Q 1 r!14t 30 23 ) t~i`hj . ,t!i F r YJ15 1 r' I' !Ili t f- go i •t.~ 1 , 17Z, 649 2''1~~/9F;489 $211,937 $87 613"'$142,333 $29fF1$3 $ ► l;11 ,Si -7(i rr;'~ I'U 1:'/1 j,'i i:Fi~ 'F tl si. f;-1! $ 68~ 'B bg $ '1 O,1S98 G? f I -j-333 `$40`~b8 201 755 itrs1 w 8~;'~2 ~i s ,f (?<.+tn°~w t. 3 ~~nt i 1 J" t 1.% .a a W1 r:rd ~{'~"'r}' 12 V i Y 1 J'J v ~~`2"1'T~ F 1'+ 1;'4 S (M`t«} 160,666 VA8,148 w 19 w __$211f937 $87j513 t't` J442, 933 d 1ff:l!lr'+.112~rF SS!!.~ jC) ~'1B?~ li;`1'~}!)~f1~ fl f: ~r'Ji➢ S'"71<yIL ~Idx'(,f116f((ttiie'a,rfl tr4~•I1 iT City Of Denton, Texas Capital Projects Funds STATEMENTS OF CHANGES IN FUND BALANCE Year ended September 30, 1977 Total: Parks,4n4 Me Recxegtgn Son ''n Sa,lar,.ee at Ontoper 1, 1976 $ 9340? ~d~ tions ; Proceeds from sale of bonds, 30000;010 80 1606, ; Interest and miscellaneous 167 106 Contribution by North Texas ' 64;878 Vptate University 64,800 ransfer from Street Assessment ~•~Vnd Transfer Irvin PAA and Recreation' ,',19,089,.. ...Bond Fuild ° 400; 000 Grant rewanue 382 182 Deductions Streets, curbs and gutters x,187,373 Pur base of land a d right 4 y~ ~ 4,870374 F; Pp ding, lapq. ira~povement~ an c: t quipment r gb d issuance"ho`s'ts and Q~t4P2 61 4 } miscellaneous Transfer to Street Improvements 0`l +~~'7 Fund Transfer to i~lk~evelopme:•', Giant It 4 r t 0 00. 40...: Q w.,... ....w...._....w.. a..r 1102 Balance at September 30, 1977 $2,6041.897 $ 773t 770 The accompanying notes are an integral part of this statement. A.R NTSU Park Street Community SpeWial Street,'i Development Improvement Development Prejeots Asgessment'. Grant Fund Bond Fund Grant Fund _ Fund Fund ttr $ - $114620279 t_ t 91.200,000 670808 l5i834 t„ i101089 X84,600 „ - - 190089 ,;+,si 239 334 142o828 - - 639',334 21289,095 14 W g 828 70tO341 t r. f ;r_ri) I.tlii'I •'~FF'~ ! tr.l. i ~ r .r j• ( r r rJ121177,421 9)952 i x', (132,737 b28#9981 l ,ti+>181021r!•f "3 r,,wc { „ , 478, 888 108, 880 alto, f4i~~~, ,Sx 1.? r!+'r'J~t f. '.1a'i J'Jr .f iFF :.~J1.~lFi~•r~ r~ra f`7. 4 - - 201,663 , ! 3-'.t "trt ~ a !•s t ~:~a:J !i , X11 [:~t l ♦~'S, l.L.f~, r '~)!lt pl a!'w'11; }.r12 < 1 i.~(;^`, Fr ti( - #f~iii?h'~')"7!t!'iJ jl fl!i-Iff,ct :•Ir,e}i.t nul~.-~ •j~~t r s a t.. •an i~28 ri ' a"DT''% l $ 160,666 $1,118,148 $ - 52 013 - .+trr ;~~:Jr•~~f>~,~ •!~r„I~l ~r'Jl.~xsr! J f i ~ rrrr~r r~~r ~ nt'ri°tc!t,i.t;irF Jilt.ply :ri~Fi°!°~I?3 ,I ir!l t,nX, ooI 11:1 ;~;•tq~al> f;i;(1 W,r?il , i1~; l)E.:1 a;;~' r c1i,• (t;l~'(,' 1 111 rl't1 j',i uf 7r, !!p ~ t l LS i. 1 , 'i tt l .S. i t t, 1, 0i-.I I'/%ii fill ~J7lY ~;`~rfJf ti1,t_' 111~jIalrOrlU11 fy(i'► l , Yi y 3 'I r ) ,t. Chtl'o: Denton,' Texas Electric System Fund BALANCE SHEET September 30, 1977 and 1976 ASSETS 1977 .1976 ~ ft CURRENT ASSETS ! Operating -Fund r 3 Acoounts receivable Siesstnltowance, of $3210872 - 1977; $3800825 1976 ..for unaollectible accounts) Due from other funds (Note.A3 $.3,$~90307 $ 2'438,099 Inventory of fuel (Note A) 1,140,367 358,234 ti O,;37l858 13,718 Prepaid expenses { s Dbf~li~red cosy do .Lone Star Gas ' (Note F) 478 821 RetroactiV6,t~ate adjustment 478p8 2l Take or pay deficiency Rebate receivable from Lone..Star i.1i+oIQI 518 Gas (Note 3TH7,0 0 ~7 ,"5 MTRI~TED ASSETSr.(1 Revenue Bond Debt Service Fund (Note C) 11232,261 458 Cash 310;734 216 • 1-0510,000 Time deposits and accruWi4t9rest t.. M - Due from Eleotvta.tOperatingarund I Revenue Bond Construction Fun18Or 238,828 K48,762 11 Cash Time deposits and accrued interest 92'231 581,572 81,218 Due from other-.Electric `Iystem Funds v Itl , wt Revenue Bond Reserve Fund (Note C) 194,487 (3CAghJ - Time deposits and accrued interest 19923,E35 11068,789 System extension-and improvement 77, s r 447 ~2d~ltY in p(~~~®S~3pasli (Not$!i Bt~n`d C) t~',7se .62 ; ' Flo V 4818, 1?, i11')aIoa[ Y UTILITY PLAN INHOME 'Note A) 291' 329 " '291;329 t~'A'id A''d land Y~i"J'lft~fi"` Electric plant production and distribu- tion facilities (less accumulated do reciation and amortization of 1978667,170 - 1977; $16,333,408 - 25,758,730 2g,g8$,055 Construction in process 1WM$2797t3 497 ~ 73?M 63252 6 INVESTMENT IN INTRAGOVERNMENTAL 180,747 ~ 303,,, 298, SERVICE FUNDS - AT COST $41,525,132 $3909010806 The accompanying notes are,an in,,gg ~ 1 part of this statemert. . 5 T' i S S I' 1 S Z LIAUILIT-`$ ANDrSfifim EQUiTir 1977 197e CURRENT LIABILITIES (payable from operating Fund) Deficit'position A' pooled cash (Note S) $ 30817,043 $ 2,445,451 Accounts payable 10227,438 1,234 444 Accrued payroll and vacat;off Q ,y cYg 06,321 3x50 r :,101,x"8$ r -,`93,340 ~q$d other fu 197 $1l 189,406 t p t A payment (Note c Td i4 g ' T,ti , Act. ve ; e~ ijust.raent _ &4 062 . 000, ',4r tP 4 ' i , snot' - Rebate payab ble to 'customers (Mote F) a$ LIABI'Jd PAYASL Fr to TRICTED ASSETS S "d Rev 4 ,d 4nd Deb t,.. o ce Fund l .a~ within one R bonds 10044 3$ t)1042 tOOO A 3063~a Af ..sfirt, i> > i:v','~~3 r ,r '3 0 948 0~ ore ' Rev S`nd inte Cgnaon Fund 7905 t,r1,280 43 06 her f A 11 g payab 0 v'rtr,itlc, - cs•iu9c,r! ;,n~ra~,r~t ;.eril:lt:ro!SU L0NG-4E6'6k"A1 (Noi'ogdO Yxclusive of i Rev2gej sasdue-w t cone year T;VU39000 ma t t'dd,ovS ;,'t ,!G',t: t: SYST Rea \i'0 t~1S C " f1i,J322r~1n~'$t;789 F t Unue boba''tHlIngenales ' 2 ,185 447 FQ •s ~e xt p I a~x d improvement Unre `~iwd`nrement°ii'~iauation of 2,019,909 2,303,069 uti•lity°-plant in-service (Note A) 203 124,844 Contributions in aid of construction 161 7 961,203 7 124 944 Retained earnings 0,31"0 880$8 COMMITMENTS AND CONTINGENCIES (Note E) - " Jrr,r~t,JrtJs: ;:iris "ta J"Acl IWT;A,<#ini r,s $41}325i132lrr$39}201,686 ;35 -y, r, zn 1l. P City of Denton, Texas Electric System Fund STATEMENT OF OPERATIONS Yeara.,ended Septemtpr 30, 1977.and 1978 , 1977 1976 t Ino•ome ,I. r Electrickoy, sales (Notes A ana.C) )Custom(ir ~'`i206$3 '~12;A'lf'{'s0,6 Intrag6v0friidntal 76~,,d88r 8b0 2'24 80 ~$66O 5' 2 Resale. vw@r income her ' ' '4057013 Fxpedses Salaries and wages 100570607 991$71 Fuel 3$ '(3 ~;7,1t1 ±gz„~' Supplies ! Maintenance 1. t( ;11~2 s isxF§!liY4;'services 456,9 n 2 G $8 t. ervicee l~laal rEC,?~ t Ilc S E!u b r Jai i ad debt"j)a 1 , 14 Sundry Operating income before depreciation 5,034,,967, 1118' 3? '1., ,,,Z „t' L 0 ~~b~f I'f.~,~lT 1r',y IlV.,•,{ 001) ~INFF?Oat 'Roo Operating income 30984,354 21787,854 Interest income 234j703 4 tc~,1 4$219AW 3;034;595 074 6ft" E,xt, B14c} gter$Cct ITO,@@B , 1 +:•+f+~~--t»{~~f, -•tJf!yw ~-"La 3r, !'(.Y.l=lJ + I,T '1lfE i,lS~lh3-Irl~t U, 0 t (A l t U ) w!„ •tj S-`:'S i:+_) f (JI nr?J + ;w+; Tltc~ T.! (!i :rt~~[ t~irlf):3rua'.' ('.~~(~)i., 1.?~~ ~~il~,', 1 s;a(t~.Ei'Xf•') ~r''112f1;~`?~1 ;"C)J (lit",/, ir) ~ 1Thlfta'ccompany~aglpoto6 are an integral part of this statement. 46 I 1 l Olt 'mc ,i a i THIS PAGE LEFT BLANK INTENTIONALLY lot, 'o ?tlrr'a'Jtl'~ ir;+'t~i ticti !r.~231E!r.r [+tf1j, tLl'71'a: t'If:;r ~ 1 ~Itr~3 ~rt1I1•~vt,'7 '[t~ ,.)li`;SI'r ~LJ~ fr.. ~il ll(.:.~ I[~~1 •~~~ri 1: U~{ '•i r~l Irk Ct.. 'l: r, !aiE 1 f'C TTA c. City of Debton Te Electric System Fund i STATEMENT OF CHANGES IN SYSTEM EQUITY Years ended September 30, 1977 and 1976 Reserves 1 Revenue Extension _ bond contingencies _ and im rovemenntt_ M7 1976 1977 Balance at beginning of year $1,9680789 $107685971 $2,8851447 $1,600,949 Additions Transfers from operating Fund 1490533 1990818 21213,334 10669,233 Contributions by customers - - - Net income - - ' Transfer from reserve for extension and' improvement for additions to utility plant in service (Note C) 199,8111 2~•y)11_5 1C w ,rneauct ions 'teduction equal to extension and improvements made during the year from current revenues (trans- fer to retained earnings) - - 4830804 384,735 Amortization of unrealized incre- ment (Note A) - - ' Transfer to General Fund (Note D) - - Transfer to reserve for extension and improvement - - ' Transfer to reserve for revenue bond contingencies w r 493j 07IVV Balance at end of year $2,118,322 $1,968,789 $4,615,1'!+' $2,885,447 bwmmwwftma~ - -ter...-..4M......wrr...w The accompanying notes are an in11ral part of this statemoiat. ` yr t } 2' N 'S naa r sCotitribdtidne' Unrealized inorement in aid in valuation of construction _ Retained earning 977 1977 1977 1975 $2,303,069 $2,5861227 $1240944 $126,600„ $7,306,733 $79444,031 :,tai :~s,'r~;~t~;, ,~~•t'i '.I1 ~Fill r; J 38,259 (11656) _ r - 33934476 2,15Q1627 E It'd e;,iA'I rA, '48 804 364 735x ~.~•...........r• 390Z59" "t~, 5 S , H'OC' ;3 Ulu f ~3 S tC ~ S Jts3,c~t rl~Iritt~tr ics lit -.ft;.Aq of enr,,laif~,A i1(7t}~!f:Ci,1 000,1-t0,F ,1•sll.t~•'I (>1~t!'~, 1r ,'':;it;+i) l~1 '(•zi~'.F:'L`i il';~c~ tlf~CSC'l~,a.i:~ ~U to.1i~➢~) 1f, .;alc;.~!'J;iJ ,tars FtU J _ r f l;i, C'C8 t'1t1~' 1 t , J} -19~d~~fa 11IjI ?1's'JPd,i'Y ` 48 811,607 ' 3,. dB~;~33 lf,14 01 % 18 31213's"s 80 1650 $2,019,909 $2,303,069 $161,203 $124,944 $7,965,780 !703060735 gwwmsmx~ A•39 i;t 1. City of DentoA, Texas Electric System Fund STATEMENT OF CHANGES t?1 FINANCI,IL POSITION Years ended September,30),4977 and 1976 1977 1976 Sources of working capital From operations Net income $ 30393,176 $ 2115816,17 Charge not requiring working capital Depreciation 1,0501603 11021,522 riorking capital provided from operations 40444,079 3,180,1.49 Repayment of investment in Motor Pool Fund 124,549 Contributions from customers and developers 36.259 (1,656) i 5 S;(tQ1mburgq"%t;for cost of fixed s',iP , j:ia$flet@Itnat4~~; ,for ~ '@?Fa~ `power,:= _ Pooi M 74 985 ~lc,w,.7 73,253,478 Applications of working capital Additions to utility plant in service 924,683 102210574 Reductfpr.-of long-term debt 10044,000 11032,060 Transfer to General Fund - return on net investment (Note D) 855,168 811,607 Net changq„ in restricted assets- and liabilities payable from restricted assets 1 52211 -200 837 731 :T `s-`~,i, -I~~ PE (DECRZASE) IN RKINO CAPITAL 289,836 (6490434) rr}}g c$v.~;t~~ s(deficit) at beiinning o year _Cl 107 046) 4b7 612) Fgr ing cap#t4A ((deficit) at end h;~~; {P year A•40 City ,Li Dt htl ob,` TeXAS"+ Electric System Fund STATEMENT,'0F',CHANGES' I.WF'INANCIAI8-1POSITION (CONTINUED) Years`• ended sept6mber 39j A977 and 1976 1977 1978 _ Changes in components of working capital r If1L(CeAse (decrease) in current, assets 337;427 1'Accounts reodi'Vable $ 878,670 '$-1337;427 Inventidry. of fuel 784 351 ill 491 Prepaid expenses 24 ~ 138 (14881) Due frori'other funds''' 411208 38;099 .r Deferre'd''cost on LOna"Sihr Gas deficiency payment (755)241) 1)234;062 Rebate` Vdceibable ff6A. 1.6he " ' Star-bid", 308 516 " tW (Increase)Ldecrease in dilrrbnt. PU 6L ' t 11tV6, ~eficit0}46ion in0I109e'.( t[F),' , I t 't. (11171,592) (893,296) Ac.count4 plty, ble 70006 s (51' 806) Accrued paYrolf and vacation (700550) (80949) Due to restricted a0,.,o,ther,.. (308 420(88821) funds Customars' deposits (27808), f (8;918) t 3:, .~~~yath`I►Y.~b _..to customers (205~677)a . t'a iSrr Accrued, one Star Gas ~'Es) ;ttt.i;~~ycAeh~sc5(y' 785241 ) 112 41062) INCREASE (DECREASE) IN WORKING CAPITAL $ 259,836 $ (649,434) The accompanying notes are an integral part of this statement, A-41 City; of, Denton °t.Texas Llectric~ System Fund: 9TATEMS"i OF tBOOSTED ~ ANDi AWML'~ REVENUE 't :Year,' ended, September +30, 1977. Revised Actual budget Actual prior year customer sales - residential $ 80482-1040 4 4088014337 $,4-j1M394 Customer sales - e1t6)F.a, ! _.cosw~ercial 10,341,000 ,jOi383j04O 7y792,387 i Penpltiev t se's, 120,000 t, o 147,258: • 143,681 , Dus to-dawn ren4l ~~iges r! 32,000 31,932,~ 30,043 Intragovernmentai sales 047,1000,, , 584,584 f R ,082,990 Btxeet~-pnd h1ghNfty,; lighting :,.10,.Q.9~ J ft, 174,411, f,,, ,yr 128,244 Resale power ,iriCQp►Q,; 8000 000 680 j k,05, , e 700, 582 04.110at 0-o on icbotool. off accounts 11200 5,199 20081 Reconnection fees affVi409 ni Miscellaneous 971000 76,g1Jtlxrlr,tS0455 19) House moves 11t fu J 1 O. 1 ~o 708;Mi,?FJWP05 013 olptpi'obt 1)001 C ,),td,234-17p3n.r«- iv,r,264;941 lloljn> )rr,, 1,rfa I.[r-1Y fr?fra•ta,) A (0 $17,415,000 17,942;70 X,;A3,8892854 bag b@s J7 i'S:f ? a'E u't X1100 ( A,ijuutpent tPjtilt B()L) abnul (81;oaeroial{.,8.;1 aJkor ~b ' •(;°f,Jrls~ Into res~(r@tyupupj 4841) F3.3x"7' 'tf,li; )n~a l h a17,)4f, illo, 1, 1 111%,i,0V $17,708,►R7.•3;t~.~.~3~405,013 ]1,0-r3 {r{:r .r~r~) ~ 7E:f,E3f,c; ,illlT~tA7 ,:ZY,3:~SICa~T I .1f' `Hill. ir' )o fit., o*tf. t- ltOf! iIFI',,IU;S~A~f)7'If; -)A A•42 1 ? f.;3 T r1Cf I W)Q lo br1City 36f Denton j- 1'4xas Electric System Fund 9TAT81imror APPROPRIATIONS (AND EXPENDITURES, ENCUMBRANCES AND TRANSFERS . 11..' 1. Ali; .r . i''? •z , ';1.( Year ended September 30, 1977 t Expenditures Expenditures, and r' ' Revised :!_encumbrances encumbrances appropriations and transfers rior ear. ELECTRIC PRODUCTION r ; OVA II Salaries and wages $ 518,698 $ 508,910 i .491?,383 ! i$i~ppiiea < 152,171 <129,530 1").85,295 Maintenance 108,576 85,9071;, 55,769 Fuel 10,3369363 9,998,073t~=<< 7;399,598 E"rSatoicee 1122429QSS (1, 13916571111',', i. ;vP x•-230016 Insurance 108,931 109,791 r ,'r r„54',852 Sundry 704 ►;r37; [ f:•r ~c: a't Capital outlay 54,098 it 215.11111::#,r 17J872 120b2b;gou X1,123 '`8127$785 ELECTRIC DISTRIBUTION riv r,, lf rrfi AND METBRING -o j '100,88ilsrien aiV4,1 , infam1pov r,(~at8, ik e8 (1~1I't;i 827, 686 s',oc' i 542i934') i6t,h 4017,578 x-Supl>lee `_ti_f' .r t! r. _ 22'297 22.073 ,L~~16,9Q1 I of enancs- F j'~ r: 101 900 T' E r' F- 127,961 1000911 rvices 21080---* 33,914 14,701 ~cr8,lttafy>E~ince EsCt , 17,72Di'lI VW , J8 17,74$ 12,947 Sundry 500 107 1g,754 Capital outlay 292 9IS 299,.8~.9~.0~ 430 878 10044064501, V7 1.670, PRO RATA SHARE OF a(UTILITY ADMINISTRAH TION EXPENSE „I,r.4 l,rrclr! Salaries and 'if) 1, '1WA9e's (CaS, 7th8.1 ) 114,850 1110798 ~ 1+3r,;~,98,6to Su ;lies 30305 3,42b~~ t J r~ t 11113-,695 (ts?~t: IfN hrtenanc(6188, C,WI.1) 2,695 2j741 H)ii,;rjv) 1,557 Services 195,280 193,038 7 rt7ilf33',181 1 f,'trrsr,~) 7,714 Sundry 3,445 '31036 Insurance 762 1167 ~ r1 rn i r, 467 d0ftal oAf Y u:~ 111880 11430 ~G,Vi~ l~1Vj"L/4rriri'iT(Tr;j1~G0a,vJ4 (~FtN,t3'.,'f) (I:,H3',8c:I) rr:;+r ~rr~'r',ua A-43 r..r. City of Denton, Tekis Electric System Fund STATEMENT OF APPROPRIATIONS AND EXPENDITURES, ENCUMBRANCES, AND TRANSFERS (CONTINu4D) Year ended September 30, 1977 Expenditures Expenditures, and Revised encumbrances encumbrances appropriations land transfers prior year 04 NONDEPARTMtNTAL EXPENDITURES r ,Reserve,: Fund' .requirement $ _ $ .59; 700 .Interest and redemption+' t+ `requiremoaits+ (1,867,227 t „ 11, 867, 227 ,189661608 .Transfers to 's , E ► ► General Fund Adminieitf4-4i i ! rl;, , c ..,l tive3'.1,iI! tl',Cf' I services 466,952 4580968 4171098 Return on net in. 47%111.'!'1;314 0011 vestment 875033$ 855,1$81(1 IV 607 f , Bad debt e9p*r%ao r; 1300210 1209120 e !248, 699 J oe,Sundry 313 3.3 0,448,:)sir,,n'3-4331 dl;'.,','i $17,167,593.;,;1 16,652,438 (12181(1,$01 t ti j r; [1 i:: ( c , t - C ! ! r i r i I t13: 7 Al oori11ENTS T4 c d s ; f fi ° COMMERCIAL BASIS Encumbrances - prior year i?8+;888 i; <or, `x!'27;205 , Transfers to bond paying ut ",Eagents F t?L, i t( I Lt (10867,227) (11e56,308) :+~(Capitallzed=:►- r: ,r(~`f; 11 expenditureq <; i,Q;) (11 287, 88Q)., rr 1 rr , ,OA$i 588) ti+! ,Trminsfexs too tj Oxi~ o-:"',lv•,r,3 ! 1 C , v Genera ound t* return on net t investmeat;Git +rritl, t {855,,~i $)r£, ance 807) current year (1580486) (128,868) Vacation pay accrual 60,773 - A-44 $121673,318 $ 9,615,637 .I}t IL:p it i• _ f . s r~ 'I' YS PAOB LEFT B40 INTcwTIOYA C,i :IT r:1j 1 (+~liJ'' t'!I:'r~.'. LIftC+;l 4S;i`jtS3 I)^'~1'J'?'.?S k fill ~;J'.'lS~;,fl rl;ill')' ~ f!) (1TiF f2 r. S'I.' d~, ~ I r3 S' ~ ?n}:~i'r [>)'1rI !Ir'r+ trlrl3,i 1)':tt1;~ I .f )U '1'ft6;'i~ !ft,f'S'V k !W) N,fS;~ 1E!!,lFf S l)r,j 1,1 s!),J;.I,!,:)ft f~i i,jq '(?tf u 'I.rw~;rP t C, nfSi is,t l ),I r) !b r7"f(;':1fi f,-fl ,f.i;t;Ihj iJ C1;~lt i'•'f,t } s?fi ~i 1'1 -10'31; V^' G ;0 i',.f;t i:r!T,Of,'( {tlCtif IiS0tr,'.11G f; f?{' tjt,) f;(!S,tlf?~ F'. '.`JClfr7r; llf fl<!t,J iIFY)%'IIo) ~11'..If;i'111i)~'. T~ttl,) ~,)i? 't'3L!I t)i'.I`;'>.111I fIG '.1'1:}, Hfl?I7fl !~II.t.Vilib~l(,^r! 17Q °:~!'~'1' A-45 P r i '!T^1 5i. , . v City of Denton, Texas Water and Sewer System Fund BALANCE SHEET September 30, 1977 and 1976 ASSETS 1477 1976 CURRENT ASSETS Operating Fund Miscellaneous accounts receivable $ 51807 $ 10,501 Due from restricted and other funds 166,433 220620 Prepaid expenses and deposits 4 226 ' J RESTRICTED ASSETS Revenue Bond Debt Service Fund (Note C) Cash 50,K09 105,585 Time depositW,Wd,tklcci'l d, ,d AVe es 'AII 87,129 Due from Water and Sewer System OperChing Fund 163,325 - Revenue Bond Construction Fund Cash 578,189 780068 Time deposits and accrued interest 42,540 68,907 Revenue Bond Reserve Fund (Note C) Cash 185,929 Time deposits and accrued interest 330 858 1801010 10351PI51 !819J07 UTILITY PLANT IN SERVICE (Note A) Land and land rights 223,896 238,217 Water utility plant (less accumulated depreciation of $4,499,372 - 1977; $4,1740931 - 1976) 80218,201 813790114 Sewer utility plant (less accumulated depreciation of $3,715,165 - 1977; $31498,308 . 1976) 2,60709!e 207630669 Water rights (less accumulated depre- ciation of $120 031 - 1977; $115,029 • 19761 130,033 135,035 Construction in process 496p293 206 398 INVRSTMENT IN INTRA00VERNMENTAL SERVICE FUNDS • AT COST 1089975 2430766 $13,312,951 $1208220060 The accompanying notes are an integral part of this statoment. 'A•<6 n. r Ala. 17 Fs t;x~,l ,~?CS1f7'sC~ ~1<, •r1 f." tts . 71 LIABILITIES AND SYSTEM EQUITY 19,77 1976 CURRENT,LIAB,ILITIES'(payable from Operating Fund) Deficit position in pooled cash ` (Note B) 8 727,021! $ 918;947 :Accounts! payable 7,110 8,703 Ab"cruad pay"U, Ahd vacation pay 49i"2Q8 C.rf~,23,152 Rejieniue bonds` n.i'yable within one ; , ! , , t r s•,r• tc.+r tgear 209,045 192 641 ,bdb, (tb': rsstridtedj Arid other funds 190,057 37j861 r r r r r LIABILITIES PAYABLE,FROM RESTRICTED Rdvoh,ia Bond''Delit%'Service Fund " t.r;ERdvebue bdhda.'&vable witliirs one ,v;I ci F!01 ,10%ar i t.r1' 145,955 127,399 od•~Addrued int'drOt 67)878 t~_>>~i:rtu<86,314 fWv@n'u@ YBon(f~~" brsr3 l) ti ~rugtion Fund 20rg71 11 568 Due to other Water and Sewer System Funds +--j0q,,F24b),0 22 362 i ~(~',iiOF 3~'C,.IJ~~ rst•=~~,ri't ;1,iii,rt~+qC1 LONG-TERM DEBT (Note C) R#V,Oh,.~?.bonds `1S1i leV- exclusive In1 16f. aik itriti6iTatf6rwiihin one 60230,000 60086,000 rear ~ ~t~sY t,rr~i t ~77:9rr1 t,w)P s $16,588 480,018 Resere for tributionfrom revenue munibond cipal t org other Con government unite 2r751t412 2,847,422 . Contributions in Od of construction 2,284,927 20185,954 Retained earnings (accumulated deficit) ,0400051 _ 17,759 153 $13,3121951 $121822,060 1J7(i3i! ~Ila>' ta1l ! !i't :~'1f1(( t t,'f,~s1i3! tiG Wi'!S: 't~i~~ill: A4, City of Denton, Texas Water and Sewer System Fund STATEMENT OF OPERATIONS Years ended September 30, 1977 and 1976 iJ , , , 1977 1976 Income (Notes A and Water sales CllstOm@1~s $1,614);167r~ $1;48$;408 ,,IIntragoVor-ruA 'ntal 66,708, r x: 28°,023 Sewer service charges 817;747rzl 881)847 Other 6,361 - ..,,7~.8~LL944 17504,E i p'2 Expenses Salaries and wages 649,331 537,,831 Supplies ? i tc:;i'r4 ;'136;$38 fr'f :108;547' L. Maintenance 254,995 232-1319,t raf, r -341y249 !:,)-i 246j33P. Power Administrative services 15 ,823r af1139, 033 f.±.. Settvices t A . , t 1 1142 3'?.1 1109 ;.J1' insurance 0 16y91811 i +u'1 .y$40 Bad debt and sundry expenses +rtl,!'i fta a:~r• r 91 1100•t 1,~4_4,.i:.498 Opererin`gg income before el'r+IF`i 1::~9 r:;t k".. tlop~'e''ialion 8019077 838,711 Depreciation (Note A) 548,301 5311 operating income 2540776 3060945 Interest income 67 804 ~c:.,f~>tr $ 64~@rsl lit 593 t11C"'ti: tJ'}rf r't?fri# 1)0.1R;t:,if Bond interest and fees 316,635 326,539 NK' INCOME $ 5,945 $ 50,054 ~ i , l ~ l , l 1 i . i , j j i; _ ' 1 E i : ; 1 ' ! t i ' . ~ ' y r • r J l . 1 tl <!'?3'J .4 ~f O t 4°~)<<. r^172 tzlf id,ta'~t3~,rlErr. r,:'tl ~flt~i,13E1.1'~ftt,~`~ Cr~, Itt irf+ rla ~ilCSi,1.'.~'F'J t,. f r. ryc•'t: r',IrtYJtjell ! ~jit 1'~r~t ~S'))1,~li;tli._rt1 '"tUffVi/1 C! ~7f)Ci~fr'`ftt The accompanying notes are an integral part of this statement. A-49 :^E THIS PAGE LEFT BLANK MT6tZOMiLX c➢'1f,7~5„'t --,f'lff !fi'i21 Cl~ 'iL~?fll:'1'd' Jl" •r~ e'~,~F f.`1,~. o l A•¢9 - s City of Denton, Texas Wator and Sewer System Fund STATEMENT OF CHANGES IN SYSTEM EQUITY Years ended September 30, 1977 and 1976 Reserve for revenue bond contingencies 1977 L976 Balance at beginning of year $480,018 $445,686 Additions Transfers from Operating Fund 38,570 34,332 Contributions by developers and others for.w~ate, eynd sgwear ; system impr0~'e~i~i~ts.: ; Contributions by customers for water and sewer taps and extensions Federal grant receipts Net income 6,376 34,352 Deductions Tranafer to 4eneral Fund - return on net investment (Note A) - 'transfer to reserve for revenue bond contingencies Balance at end of year $516,588 $4800018 The accompanying notes are an integnI part of this statement. `A=DO i , Contributions Retained earnings ytunI~an outer ; (Accumulated overnmental units In aid of construction deficit) ' i$T1_ 1977 1976 $2,847,0`422 $2j647,0422 $20f.a5,954 $1,789,469 $ 171769 $208,075 - 313,829, - i.,Wo 054 LVV, wVV r VV.0Y/tiL. )J `)/*•Y t 1! -1r, / 04 rill)7~ q M(.~ t~if•.. li;ae,~I,L Jt{)J ~l!•l ~t:„~t I COO, 00c, 2ku acr :i~ir~wt>', ?.a Mj;;,. "3 1~4 1.. - 300570 34,332 t. t q...0 ("A 36,570 240 370 ir,j,t(7j:~ ~irixti'rG°u CPC, ~.;E,r,t?~~,.2 rt Xr.~ll $2 751 412 $2,847,422 $212840927 .$"~11,85~~994 fit$(12j8$6) i$k1T~759 1+~L o, t'tok.) CSC( 't7Y't"`.7' n"lfr}v'f - ,rlit`~i !r I•ait!.~r") C11 'i"~~t'rlrl"!•f y,s;(} ~1ttS m 1rY'1t;~JC°ar,lA Jr+li ikt= p,4t',t3 9iri~t ~ritJ r:~y,l ) r 1 1tli~ t,( J:r1~ 9'^_ i:1 (:'1•t'f.:411`~il(f} i~si;'i;,`i)V:I (010. 011 1r ! J r t,il~~t~) 1~; 1q/; ar) tA.1ow A WI o :4)1 fill 1;4,)(! tclf7,l.t _ (OJ Ct'.t 1 (r `0E , t 1O, ~:,ft City of Denton, Texas Water and Sewer System Fund STATEMENT OF CHANGES IN FINANCIAL POSITION Years ended September 30, 1977 and 1976 1977 1976, Sources of working capital From operations Net income Charge not requiring working capital Depreciation 546,301 531,768 Working capital provided from operations 552,246 581,820 Contributions frond' d'ustomerd `it hd" developers 980973 +f 386j485 lgr .ant receipts 1030990 - FederaY, Net dedreise in restricted assets' and liabilities payable from 321j732 restricted assets Issuance of revenue bonds 500,000 ?'+t.ARdpaynent of investment in - Rotor Pool Fund "1'1396` ""i~'1$ #goo 7 X 1 L f. 1 AppXica~tione `o! yr -Aing capita ,.m .y.a...,....r.serY.~~.~.~, ..,.r,~_,~,.;,~r r.,-:. ri560'227 96i,045 d~ 0 Reduction .01 long-term debt 320 , 0 Transfer to General Fund - return 206,038 on net investment Net inorease in restricted assets and liabilities payable from restricted assets 403,838 INCREASE (DECREASE) IN WORKING CAPITAL 131,135 (140,046) Working capital (deficit) at beginning of year 1,143,110) (1,003,084) Working capital (deficit) at end of year $(1,O11,975) $(1,143,110) City of Denton, Teas Water and Sewer System Fund STATEMENT OF CHANgEF IN. FINANCIAL POSITION, (CONTINUED) Years ended September 30, 1077 an4 1976 1977 1976 Changes in components of working capital increase (decrease) in current assets ACcounW receivable , $ (4,094); $ 8,925 Due from restricted and other, funds :cr ti; 143181Sv :.b,126 Prepaid expenses`1 _...~.,1 193 l~Q 483) . ateUr3l'Z ~3fb68 (Increase.), decrease in=,current "liabil3 ties l;rl?, Deficit, position in pooled i= cas1](Ogte S) rte r)lo 149092Q l~,,{~1Sy 23) j! AccoV9Ss~•payable(jjO ~I ,ar:!1r$03~~,; rtilsiQ81 ,Accrg96 gAyrol1 AA0,,V"#tion t pay (26,056) (7,1146) Revenue bonds payable within s rr,la one year (161444) i 314 6 Due toogther funde1)j,,,,A 1158,160n:,I.t 3 8~1) ~l" t'~r~i, (DECRUMi IN 1 1•0.01 IRAN IHG CApI 'A1+, 131~120.,s *i fit 4.f';. 0'S0 . M i"IP,i i'a -,AJ1E 10 t.(;'~ , ii:?F, , , i 1'i i+ Pty. ':iiC t`•, i (%li)?3,'.il.? (F:~',ht..') fl[,71.t`at!'f lr.(tU';~ '1'.~ The accompanying notes are an integral part of this statement$ sr A+l3 fit, City df Dentofi~ "Texas Water and Sewer System Fund STA'TEMSNTC OP %UD09TED AND ACT'UAL' AEN8NU8 Year >33ided September 30,!'1077 Actual Revised prior budaet, Actual year WATER Customer sales 4esidentigl." $ 950,000;,/$, .49 IiO82,- 820,035 Customer sales Aommercihl'-,' 740t000 634,582 627,043 p~fifalies t,, 35,000 .:"47,804'. 310561 ' Inlragoverh~6ntai 35,000 56,817 28,023 Tapping fees - water 37,500 48 460 39,328 Sale of scrap material j;,500 ; '"'788 s 't•,I1140348 Miscellaneous income 70000 11740596 Interest i s (c,c:n al nog 1 1%17 804 { t 't 88,848 t``'~ra$ef>for ire aiet 90000 C; Ib~089r 7,767 t ~Aidf in confitiuetion 12 000 ,a r; s 23' 861~~''a A 11,103 ar,t 26,000 IIr-18271059!i`l 712,54 SEWER r~ irtJ i:w 5[tik .`ttc~ ~:k,trcti 3rnc2f H i FCufitomer WWI) lt;+ay or,u (lo~zLi identfll•,8P I>.., 453000011all '1420,1`036 ou(t 350,940 commerciai5y~ QQ0 354 656 273,853 apppp tag fees - sever i 48.61`j=)"t`)) 't~ 111896 V0 a CteA~ioiz~a~ 17,400'01gk-) 0441150 10,649 ...-IntragovernmeAt.al,,.,, - 822 - Sewer fees - other oities 110000 91882 8,070 Sewer fees - industrial water 30,000 27 451 28o984 -~s`0a - 8$4;192 $2t705,500 2j6711158 2, 398, 734 am.wwq..W~ Ad3ustments to commercial basis Contributions in aid of construction (98,973) (720866) Interest revenue (67s804) 68 848) INCOME $2,5040981 $20255,220 A~SA ..~,it I- r r fi 't Cit'y.of Denton, Tex ^ as Water and Sewer System Fund STATEMEM ENCU AND 91F MB tANC IA TO TRANSFERSENDITURES, Year ended September 30, 1977 Expenditures Expenditures, and Beyise~ {let{c1prances encumbrances appropriations and tr`anslers prior year WATER %PRODUCTION, r t is ! r.. $alaries and wages $ 160,19,2: ; $ 158,048 $ 15 9 8 d supplies a. 94,913 93,851 85.,2.$9 i i ifaiptenance 1:..,i 18#970,, 18,418 , 110$03 (I Production power 182,194,-, .1 2040358 .139,028 rSe~v~ ces t 52,41,8 51,949;,, t t 43y45 ~y t'Apital outlay.; , 8,28A , 11,337 .,818822 'Ih Ott' nCB 7109 I , 2 8 6,046 5241,08 ,631 545 OZ+ ;.It,;; tiIA WATER DISTRIBUTION l ri i, t ,,t•. i'F11111z ti AND METERING Salaries and sf; evagoo 4;E0t01 194,632,+;),,q-, 203,099 ;..~,„X100478 IS4; Supplies 1h f? 22,0741s:, 120042 x. +ilr ~,t cn7*,742 4;t,)oMaintenance 1200440, t; 12$0098 j 2;860 i::fts,BeYvices Co i 8 tF1 . 1$050:4-),; 22,472 ivsr$,206 1tj Sundry 2Q9 25 r,81 Capital outlxy.83020,(; 730187 I Insurance , t; 3 8 3 1 r~;ls t a.9.,.8~.5,4 409 ti SEWAGE TREATMENT AND DISPOSAL Salaries and wages 189)491 177,851,a ; r ,,w,135,;738 Supplies 360255 310601 t.Yf, Maintenance s;s'i:, 39,052.{I, 1 440211,1., 37,722 Production power 124,143 13.6,-,89.1 f, 411; . s~ 107,304 8f,o 4eryices 41221- 4x67.0, .,i 2,273 Capital outlay 80005 8,39U,r t , ,A,02I Insurance 1 048 2 4 cfl 1 191 833 385"215 ~Eojm ,It. 1', V iE111UiP. I~tS Ui Et I N 0 0 1.4 Ili 'j; t~k:Fi • F , X11 t,.. 11'r C'. 1 r•1~f1 1 s.!i, t~`ih, :r. A-0 City of Donton, Texas Water and Sewer Systeih Fund STATEMENT OF APPROPRIATIONS AND EXPENDITURES, ENCUMBRANCES AND TRANSFERS (CONTINUED) Year ended September 30, 1977 Expenditures Expenditures, and Revised encumbrances encumbrances appropriations And transfers prior year SEWAGE COLLECTION Salaries and wages $ 18,540 $ 180,824 100)4635 $up1.13es` r' 13,414 12;776 8•1981 Wittenance 59$58', 609933 68;534 Services 231247,.-'': 17,991 140176 100001, .Sundry 63616 279250 dapi'tal outlay' , t, 47 405 nsUrance 3.369, 2 9641, ~ 2429 13 LL -338;x'' 302,730 PRO RATA SHARE OF UTILITY ADNINISTRA- T ION EXPENDITURES Salaries and 1110 x 1) waes C. 0 t:39,601'," , 1"{ 400042 f ,39o282 f, t 984 921 # 6%pplies 1,285'0 ,s 9$intenance 818 i 557 i a ;a 589 Services 48, 0761 i1 • 46g858 81', 285 sundry ib 91 t: t ,I'dburance ,131 i t; r 30t} ` 248 , i, t r, s a 1 9 ' dip tal outi'dy' 7447 125 NONDEPARTMENTAL " C f } EXPENDITURES Transfers to f'10eneral Fuud .Y', t r, i AdministfattOb servioe'd:155,651 152,323 ' t39, 033 Return drSineC'J t,::~ +-t~`, inwasthiehd - t - 206'038 t'-'u hterrAest and 'C; 1 f!.~ ._redomp.lod ;re-' 4uirement and sundry 638,456 638,456 632,950 Bad debt expense 25,000 30 131 0 WWW $20586,527 2,617,725 204080740 A-56 City of Denton, Texas Water and Sewer System Fund STATENEUUMBRANCESRAND'T'R~NSP99SD(CONTINUED) Es Year ended September 30, 1977 Expenditures Expenditures, and Revised encumbrances oncµm~rances appropriations and transfers ._Rrior',y ADJUSNENTS TO P0NMERCIAL BASIS Encumbrances.,, ; prior year,-;, $ 20`,003. ;27,55 Debt service requirements (838,456) Capitalized (31190 86) X14"bbl) expenditures Transfer to r ~r.rs oral Fpad re urn on net3 (206,038) investment Encumbrances current year (20860) (33,167) Vacation pay _ 18,878 accrual t. ' <1XPEN' 6' $1,70319,04, L, ii i7 f7 I'7 ti7 ( i (6'.?t 1 f t t p A~51 City of `D'e'mon,' 'Texa`s' Intragovernmiantal Service Funds BALN~, SA`8. September 30,.1977 f ASSETS Working Motor A88ETS (Memo) Ca_ltaI Pool CUARENT 4888TS (Note B) $ 5980036 $ - $ §p8036 Time deposits and ' t: accrued interest 26,821 qcounts receiyapiQ 222 222 ' Inventories (No~~ .d) 476v768 476p768` e j m, othex } ci • ; 970419 9?, 4f8 " repDaid fnsurgn.c 553 S53I' ' { Total current assets 1;1991819 574 ~~rr rrrt~•ru n•r fft';rilt~rs`rul. P~ I Note fi i:u f r; 2, 368, 701 510 ~ , 317p588 1A a-ecamulate .14r.;. --depreciation,o , , (1' 305 685) (19 0) (X 288 6»2) $ 2,262,838 $607902? $ 1,6551813 The accompanying notes are an integral part of this statement. A~SA LIABILITIES, INVESTED CAPITAL AND RETAINED Total Working Motor EARNINGS (Memo) Capital Pool CURRENT LIABILITIES Deficit posit;io3i in pooled cash (Note BY $r 282, 806 $282j806 $ jinie,• Accounts accrued ,pk. bll and vacation 99j815 99, 815 ,:;;t 218 - 218 ti funds ~tb of er Diie :.,,i Total current 4iaufl'ities ~~~'s 382,839 382,621 218 Cf'i,i) ;f i INVESTED CAPITAL11 Investments lbj ; (Slectria' -1' , 0`; Syaten► V"d, k 001" 180t747 180',t747' • t5 tQ add t , ~,ta a en~Stb s c.~ gi"1c~dS~_t.t'~'~__108~978 108,976 14 Contributed assets , ; (General and Spect Revenue( fft h4i) 97_10 878 9 --I$ Z64 0 0OU zsv 0 rzz 'f;fUJtlX 'LJf1lC) RETAINED EARYIN ! <61 arr, .,ni 2Uu'ait1 t! e~t,Tf1 (ACCUMULATED DEFICIT) _ 6150396 011165;021)t,,' 4„2, 262,835 $607,022 $ 'V#Z55;16`13 s}{iS.'J~1;J tl!'{111;lJft-',',11; ?1 A•59 City of Denton, Texas Intragovernmental Service Funds STATEMENTS OF OPERATIONS Year ended September 30, 1977 Total Working Motor. (Memo) Capital ~Pool Charges to b*ciier funds $115280952 $1,270,297 $2580855 Less cost of material Beginning inventory 4871298 467<,298 Purchases 1 04 1 0 8 101: 3l ! 1#513S399, Less ending inventory 4769768 47 M 1 036 631 492,321 3;60 ! x$65 Operating expenses •i+ salaries and wages. 1921776 , =1920•77,8 - supplies 8,717 61717 - Maintenance 101425 10,42 services 201356 ,f X0,356 r. Insurance Depreciation~(Note r A) ~ ' ti} 283 135-1,.*: ~5 fee 4.48'19 Operating income (lose). 8, . (5j603) e:i 7 79 it Other income Miscellaneous income 51714,7X1kt~:3 00von salo;:Ox,,t•rjftde of, ?.10 11ITIII equipment 97 - 97 „Yn.te~reat o;` :f.673 - 81673 NET INCOME $ 8,881 $ 111 $ 81770 The accompanying notes are an integral part of this statement. A•60 City of Denton, Texas Intragovernmental Service Funds STATEMENTS OF CHANGES IN INVESTED CAPITAL AND RETAINED EARNINGS Year ended September 30, 1977 CHANGES IN INVESTED CAPITAL Total Working Motor (Memo) Capital Pool Invested capital at October 1, 1976 $10522,008 $2894722 $19232,286 Additional investment by i7jener'a1: Fund 13,377 - 13,377./ Repayment of investment to -Elect-ric Fund 1249549 - 124,549 Water and Sewer Fund 134,791 - 1340791 Working Capital Fund 11 445 - 11,445 Invested capital at, September 30, 1977 $1,264,600 $289,722 $ 974,878 CHANGES IN RETAINED EARNINGS Total Working Motor (Memo) Capital Pool Retained earnings (accumulated deficit) at October 1, 1976 $ 608,515 $(65,432) $ 671j947 Not income 89881 ill 89770 Retained earnings (accumulated deficit) at September 30, 1977 $ 615,396 $(65,321) $ 680,717 Th'V''addcft0any`ing nott~W'a e~ 'an =ihtdgrali ~arV csi this,`statdttenVX A,bl City of Denton} Texas' Trust and Agency Fund, PAYROLL FUND ' BALANCE SHEET September 30, 1977 ASSET'S Cash $1810886 LIABILITIES FICA' tMKes payable $149j841 Other payables 32,045 u4 + , . i Iti " $181)888 i F. J ltd P,') R 1 a s 1 h T o r ! d' t ;','i (r ' ;d3 C!Yf L•l ~;1^t1LI i; l li it ( `i.: i' 1. ~ , T,htej,AFC.c FP$LnyIng'APt,$A,,Rred-AP-, WOff'Ak p9Wt1W skin ,#AAtoxentr~,f A-62 City of Denton, Texas: STAT&YI..NT OF 0$NERAL DEBT 09ptember 30,-1977 and 1076 1977 1976 Amounts available and to be provided 5 for retir4ment of general debt Available in General Debt Service Fund $ 1670517 $ 280,438 Future requirements 11,8561483 9,304;582 $120024,000 $9,,5$5,000 General debt GeneraX) obligatXon bonds and c payable $9,585,000 $12,024,000 STATEMENT OF CHANGES IN FUTURE REQUIREMENT €r:,~>tit>,,'t <'.lt,Cr3f,c> tii,~~, cr 1977 :1976 _ BA1411ce;at beginnArig of year R i $ 91304,562 $7,576,590 General obligation bonds issued ,dup1ag. the year,- ri 3,000,000 2,5001000 Doorpane t(i,pcr,eawp);,IA ~amqunt available in General Debt "85Y"W66",'Fund ° 112 921 (162,o2a) Bonds and warrants retired during the year (561,000) (610000) Balance at end of year $11,856,483 $90304,562 Thj~' ~`~~oe~ianj►`in`g ~iate~~'Are''e'ti''i'~`to~lrar~`pat't`'t~if '~h"ia 'B`tllbbMbrit:;~' A-0 City of Denton,` Texas STATEMENT OF CHANGES IN GENERAL FIXED ASSETS September 30, 1977 October 1, September 30, 1976 Additions 1977 GENERAL FIXED ASSETS Land $ 21450, 200 $ 123t259 $ 215730459 Building 1,864p943 90, 839 1, 955, 782 Streets 11, 232, 464 1', 843, 103 '13,0751567 Equipment and other improvements 1, 299, 007 649p314 1,948, 321 Construction work in process 835,621 (130,168) 705,453 $17,682,235 ' $2, 576j347 $20,258j582 INVESTMENT IN GENERAL FIXED ASSETS From preeeedd o i. J?, << f general obligation bo'nda $121807,207 $2,1671105 $14,974,312 From current revenues 1,707,491 95,274 1;8021765'. From contributions and special revenues 3,167, 537 313,&68 3,481y1505 $17,682,235 $2~)576j347 $201258;882' The, Apcp.ppany.jpg noteA;,ara8 gip.. Apt8$rnl,.Pa 't; 4 1~ ~l~;$ xF4~~'►tr. A•64 J" w . . 5 E{r r T T,P a k City of Denton, Texas NOTES TO FigAkIAL STATEMENTS September 30, 1977 and 1976 A _ SUMMARY OF ACCOUNTING POLICIES The accounting policies of the City of Denton conform to generally accepted accounting principles applicable to govern- preparation ofgtheicant , mental units.` The following is atsummary policies Consistently applied accompanying financial statements. Bases of Accounting The accrual basil "bf accountings i~ than blidgetaty funds {General,p cial1Revenue'and'DebtsService Fiifida) of akeouhtingcis,used fo'ir'alj Jundstfdr• Thee fo•r' 'p}•e~ia~'in'~~efi~,ncumra4iok _ j fiaethb~''oft&unti16 t, ng~ ief'riot i3' I ' e5t used in the Enterprise and Intragovernmental Service` Winds 1 Inventories aY Sj, ° i;,9 r. . Ij b lies and fuol afid" are Inver tbrie6s b6DISistr Orimarily ofti ~~n valued a't tnoi~fhS average colt'. ` ACCtiunto` ReeeiVable' ~ ' Included in accounts receivable in the Electric System the are"a~iot~hts due ''for v~atetl` and~'sewer gerVice%F ovided' bF• xatejJ1ifib Sewtoe) t6n`d, aHd" gai~ba p'' sevvlce6~ "fided by' the Ge~her~ic .SYsteti`,'~n~t~brfAbilirt&torccOunti'ngV'anddcbilebt Elect ` a'' r ,Vehitee , , ~ ~ - , proc8di~~oe~j.' c Eaoh 'fund' YeCO~it1s itsr own pbrtio' of tt_ `~if8 `tii~lbe~' "ffdsh°"ith~8e' t►CCOIffiL6 , j ,1_ (I't r. ` ` r5, ~f1:l;c I} ngs Revenues are recognized serv ces on the basis of monthly provided. As a 0mltcofJhis1eyc16 billing customers for the with' rbgpecte'touse~Vice' end of libcal thek,ibah City any U'bh p at suoh''date'. `Th'e amount of unbilled receivables amounted to a rbxi%ately'$i'; 672 j 000` and $8881,000 at September 30, 1977 and 1976#`' respeatidely.s Fixed ~Assets Utility plant in service and e'~gCfficrtm~rke the vAiueat~dateeof 1 jjbht f, Fur~ds~' ~,rol recbicaeo 'ti~ititg! 'buti+oh'," ~pr6oiation hits been,,pi'ovided Using I<the•,atsraight- lis. o-' aeationanoVbruxhe°ir,,estiidhted~sef6l) IWO40 W %inj)bssAt's to. o%1ex A-65 , 01' 1 City of Denton, Texas NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 1977 and 1976 A - SUMbLARY OF ACCOUNTING POLICIES (Continued) During the year ended September 30, 19670 the net carrying value of the electric. System Utility plant in service was, increased by $4,851,468 to tbOp A,p7raibed, replacement value less depreciation as determined by independent consulting engineers. The appraisal increment is being amortized at an annual rate of $283,158 and Ili charged dirgctiy to Unrealized Increment in :Y4U1tt,',on,'.,a component of the System equity, and, is„pot,. inc;uled.In the annual deprecta tion e?~pense, The; re,co;dl ng,gf fpprai4ed.values in P.4at sno; t e c e $ ps..of n oP a u exco , ~1al'g1 g .¢epfi ciatJon of censgo ,4 vaiup• dir,ePt.iY to, W. n t~l@; System iuity raiAor,, fko $y J~ 9.icp.n a l~;not,,in confer itYiL4 g4ppecal Y acce o, c4unti° pripoip.i9s, pte ac og Prior to October I, 1970, contributions to water and power,;; systems by developers had not been recorded as assets by the City, f: T!he ; aAWi~nt ,off thpRAi.assQts~ and.,.ter etf c t balance sheet and not income de p o on t'hp' j Sewer System Fund is not known, Aasetscontril)uted Water subsequent t o Seepptember 30, 1970 have been recorded and arp,.t ing civpre ciat. Geaepai, f;J d' a " ° ; ! E t 'r ~ r,•: in th0; a era )PKt'chaeed:,,are,,xec9.rd~d.4s expQn~f,;ure~ C A DoCiaX,ReYenup„a~ :spit&)„ o,~eots o!'08 W at t~s, of i pu3'Pha!ao•l r Sao. aQ8!@t$, &1'e, caps t¢lized at o t ''N ttkoJgeo;0Ya°l:, fixed acs tq, c e in,,, b;#-i9rip9r are., recorded, tp g 4ckrfL,1 AP'VPUr atriair cop'trt- value at the time received. No,,deprACigtign;has Peon pr9vtdeo on general fixed assets, OPert Y Ta r, k: Revenue The City, records, rpyopoe from, propox tY taxes to. t he Year. in wbiat;,the casb.is,receiyed►+.t .k'o~',~p.uxPf?e6,,~f a~;~.oun.tc~ttility, :tbe; 04ty, -record, dgltnquenb, proll,er~Y,.; taxep receivable„ae an asset, but offsets these amounts with a related. reserve fpr,`i uncollected taxes, Revenue Sharing Revenue 1 taf'IPLA';JV+1' F; 'Y 1 CI X It t U Ityi F1 Li JftEzp,~~`iij;'3 frS, pop enter ~fi'Aoi_.9lre, e,n.tit ie.. i 'ment p iud~ y,'n,Cone xith IYypar rto ;the ext ent) prokatic bl7 { 18.7.7 y,, the jetlding: date.of, the antltlemanti period wanC changed-! I from Juno 30 to. Soptembior...30,,,,{}onsequently the •finalr;payment ,A,66 7777777 City of. Dep011019xws NOTES TO' FINANCIAL` STATEMENTS` (MNTINUED) September 30, 1977 and 1976 ' A SUMMARy Oy ACCOUNTING POLICIES (Continued) which d ending September 300 1977 for the entitlement peril was been accrued resulting in was received in October 1977, five entitlemont payments being recorded in the fiscal year 1977. B - EQUITY OR DEFICIT•POSITIOX,IN POOLED CASK ' is pooled The operating cash of certain funds, ar, noted belowl is fund. into one bank account riot identified with any particular The accounting records for Baled,.cund ashrat lSeptember u30yasrfcllowss (deficitY position in~ th8.poo k,tut t1 3 r>i ,rx t"' t,,sr,~ 19781.1 -1 , Fund tr, lz~i r., 39 .413s-r$ ,:i_211,04Z~ Gpneraclr Fund Electric System FVnd operating account (31617,043) (2, 445, 451) no k:tq v::y Systelis Extension and 4~ 818,177 x;888, `147 Improvement i'Und i, F1aP,f~ 1'i (f,;f~ Jc4';I' t,tiJ Water and,Sevrer ';3yste1k Fund y„ 918,x.47)- i,ac~count a„ ~28~808) ft (~~13,8322) Orabingo }y .otor :Capital FVnd, .31;.i 1r 598,036 8045, 64+'Z64 : ;toor Pool end ant Fund (9,548) Criminal justice Grant t~ Highway Safety Grant Fun (7t455) Services PrOJect Fund Human , .yi ry:;•rz .s J11 ,648~753,r$s, s330je76r<< ilj ~ t!. {,/t1 JCI(f lfi t{Ly1 Y 7 i, rr iSL :i,' i al's f i t•1 ' t t ,r'T , IZ! {!I f'. IEt f c 1, l . , J r <l 1, f, _111 t '.~r i(.)lf C IANG~4ERM DE . 1977 tf' DetifdHha~l''g~iieral dtsf ~a- the,City' ' 6f"$12"024'.0006 As of`9eWMber 30 mounts tion serial bonds and warrailt+ outtt~ndift varying These bonds' "d1 *01f'ant8 az~b' pay f,.. hEeise4t"i~' pdyable setdi~ f19 r c. . throuBh s ri 01 annualla9t rates r>#nEin$`ff'bY ' ~,ni . r,r 1 b;~d bieetf'ic rbveitde' def~ial -!19770 `4h6 `Cjtyl able dtilllually As of ~56ptei&der 30, ~j944 000` Th48e`;bbAds1'&06 p4~► bonds od0tiffdid ~fY41 atadi'i'f(',ry- . t> sl~E~t~sfs~'~aya~bYe' , aBem~~.'~'~Ap~~,joi~ ";~ovl8fb'Hd ~ c througfl f499$ ~f~6'ddT'?8596'Jto 4.896• of . the electric revena:e bonds are as of the ordinance authorizing follows @ A667 r777. City ofr Denton;^Tbkhe r NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 1977 and 1976 ; C - LONGTERM DEBT (Continued) Rates The City will charge and collect for services rendered by the system rates sufficient to pay: (a) ail operating, maintenance, depreciation, replacemgnt and betterment expenses, and other costs deductible in determining "net revenues," and (b) to pay the interest on and principal of the bonds, and the Reserve' Fu`hd tpagnlents'; , us 'they become due. No free service shall be allowed. System Fund `to INj-i i f=t13t'1 'fri.lJj f~:~fr)'10i r'1Tr.r ~ltd.,<11 i4+r! ;~--1;A111feventWe received from[,the 1 eratioh of the 'systea(.!sheiIL: be deposited in this fund, and shall first be expended to r o maintenance expenses, 'Any amounts emaining n'thenlundaafter establishment of the following fud'd$ id.'theefolldwitfg order may be used for any [:la fdl" '=+r.' purpose. ~ Ittlt.`~, 4 i4 I~nte~r~'est Jand Redemption t t F On the last day of each month, thi CCi'ty- shall *deposit in':thiis fsndp 1i6bi the 1646h'%1'6;Fund, an amount of •honuy.s ot'iless jhan thb,"15r6 lVeita part Fof the next maturing iidter'est 'and 'principal pa~i~g'nt•ji~z t~,sjt'i 3 hn= tq 111>.`z:,> J~Iti;r. fs tn'yi"~ Rese'r:va Account The'"City "shall maintain-in the reserve raccoun~t of the Int#PQdtfandQRedittIdn F4nd, an amount not less than the maximum annual requirement for the payment of principal and Miresf on`aay°66 ds'outstanding. The reserve account shall be used to pay the principal of or intergqs to bonds if there is not sufficient money available iin$tihee`''"r`~ 44:r,e$x.::and,Re4emptlon-Fund, for 8it qh purposoF, NoniQS. In, the roe@ije+ afo9ou4 1 14AYi upP4z,4r¢p ; cf;.thp ,City ,CRu4oi~~ , r ,1 00 ig$tiW of;t4Q1. 80 pr~udA$,Ti,:'ii~ io~he.ri est~s.Pt~S$,eP@4i.flQdlpY.~,~h@~t?4nc~ ~ . ordinance. 9Whenev9t:a4dl,fopa koA4s,,Are,, sued tho c aggregate account to be' accumulated and maintained }in the Tq.$$rve,,Agg,q;4t .$4$k1, bef. ,~lo;°$gedr~o 44 ,$mQ44t~t ,'~hla '.wl;ll , [i~t,l~A,t ~r~~@.~§ ~~An tgp:tavQ~R88 ~6~3ua~tre #.rQQ~eq~l~g~'r~~+~c, c:l:rt~~~ .8tYg4 nZ 9~,•P~,nG~p~~,~$~'.,fate,~A9 ~Qn:_~~~.bo,.idslto,be.f.Qu~~,tr,,;~; P4~~}~!6.~g~er,~4s i,~$uan~,,4fri4~~~~io6a,lt~bo, 517, ?:'~'5~9~Irt rs li ;y!t i r'7; '.1'if iiE?fiCua •,llljl~ijrl~r,,~'it`.vfl~ft NYC{j II.~11,1LQt~[ 3t~- dartr~~tttfy•tr~ .'~rft 'io ;irF t,>:l C1} A,68 City o9,,DgAton,{1exa'e. NOTES TO FINANCIAL STATEMENTS '(CONTINUED) September 30, 1977 and 1976 C -LONG-TERbS DEBT (Continued) increased amount shall be accumulated by equal monthly deposits over a period not to exceed five years and one month after the date of the additional bonds. Extension and Improvement Fund Under t,he.existtng•bond ordinances, :thq;CIty is-reggjred, after the, above rep;uirements+have b9on met, ;to.dopostt.Ain this fund Qn - or+• be•(gre +,the lOt,h .day - ot. eooh, month 0 A sµ~ egyaI toFaot less than~.1$_1/2% of,;th@ gross;,revenues of„thee; Bye tefllcdui!iclgi'Ghe pr.ece+ding;mos►th,o Monie~e3s,in said.;yltd~can: be useda,ovity f.ora.);,All) spay.iag,Ahe3cost A:Qf.1extenotops 4130w,4 improvements to they system; (2) retiring, prior to aAturtty, , j revenue bonds outstanding; or (3) payment of maturing prin- cipal and interest on bonds outstanding if monies in the other funds are not sufficient. Monies in this account may beiluveskediin similar,.obllga.t_onaito thosp;:.oflithe tresgrye tt!' .s`-C, (Ii C 9;? li "r'»'.'1St11 4.)'1'37 lJ'q'• `r3i}1i 1f7'}~~f'. 13 Defioi@Aclee.ii►ICI iC} j? +',~3: L; E t1i11; 'i i) .1,1 If. tn(:any,(ffjgcgjtye%r rho lCl~y.lsd~l~t, +t4r aAY x6sgAB~ EfB~~. to pay into the Interest and (tedogptIoi),IFV pds 1gn t~E~si94s and Improvement Fund the full amounts required, amounts equivalent to such deficiencies shall be set 'apurtjgn4 pAAd,,I), into these funds from the first available and rnallocated reYl~nuee.~6QfF.the:,f01).Q>wit3Sifls$als•Yeal~a4r Yea~s~~',r •<jiin~~,b-r~ f f h Oi f)9~)ti'~•~k' F'.S.f+ i.i,('e C:)fi1, ~t)•l1~ i~, 1 1'-'t t1 'k.iuLl'tE.i..r ,rl Add ti0llal DBbt..,, ;t ~~r,f.~r ~,tttd}tl,.t,, r,+, t•s•; ,:~~s3:1fs:r~ 5:,. 111 atinul ';~Lif ,'oj f of oL;t ire 3r~ ~trtaxldr,3 ~ . ,17r tsnui r E ~i No additlonglu¢ebtiohs1111be-rtssitedluy((t o;: ElQCtrig",$yetets. iio Fund, unless, among other things, 6.11 of the above funds con- tain the amount of money required to be :on ,,depAialt,.tl~erei4: +;~7 and certain financial ratios relating- to'det;t .ebverA"gd are det. i '.~t~l ilf i f. s• -,fi ; 1 'fe i r"} Ad'',set forth•in-!Note B{abovej the!City has nat:)deposited; the transfers to the Extsnsiqu[at}d:Inp overregt }~tnd<ip~a:separRLe. account but hav com;lingled the monies in its operating cash pool which is t.ded, in part, to pay general operatingi expenses. This practice is at variance with the electric revenue,rbon$ at~dinauceiwhich-.required3 tb:B: monRyt to ber utaed only] lQrjextens lort► a~, tb~t el.ectrldr. ~sYetem= ox;: payment , ofr° tfke:;,~ r r~ i a,., is r. f•°: r 1 revenue iw4daa 1-iriT ;~ntL+n r,, f 11r,~ L ,t t: IT A-69 City 6f-06nt6n1;1 ~T6ka's' 4'; NOTES TO' FINANCIAL 3TATE EMS (COW'INUft) SepteoWr 30, 1977 aAd 1978 ' C - LONG-TERM DEBT (Continued) During August and September of 1877, the City inadvertently. failed to make the required transfers to the Interest and Redemption Fund. This amount was subsequently paid in October. As of $epit-Vaber $b; 1977,''the City had water and eewer'revenue' serial ' bonds' payable 'of $8; 885; 000;? Thesd l bonds~''atre payablld ' annually',in vMi ying amoudts -thro1U$fi 1998' from,'rovetue lo'f the' water` wild aewdr';System7'? Interest iii ~dyabla semiadfiually tdt ~ rates'rbalgink-ifrom j3s0%116 The'kajor,prdViaions'of•the ordinahdd huthorixing`ithd water Jand rcowerlrevenue b6fdsilare as, f//l16*8v (1j 'fo.t"Iq !ilil J t f.-l',d'n "'L) I. C'13) C1j c~ f3 ::Y~IVtt"(':I'S1 tlL"1Cj {C12'=+i]f:f 3o f11'+f,'~1t!# c• `1 '=-7, t1 !.i?f?1=IFIiffi i,F3FtCr H!1l1S>'~rrY Rates f`f1J f;1 7 f. ..i<~"f t1. r~1?tl'"1 f'`'^. 3 ;1'? <Ilfll;!9 !f i+ i. .'i ~)"?I k7li li/.rf 1':1 ~~ttl j~itfl~'~'ir; :ti11J !Jl e'"1l.fll_;,; ~l1'esJ'li-I~L+? -;'1t3 r?l?(i:i~ 'I'_'!IJCs The City=Millidh&Vg6F1dd cdlleotJratedusulfioientitb -payfall°-t{ operating and maintenance expenses, and other costs deddotible In" determining "net revenues," as defined, and to produce each fiscal year "net revenues" in an amount n~~~$BAd !I'.'30 i a times the amount required pay the principal of and interest on I fidb, , liddrtheMs#tie, gftd'pk**intd~ 1Lf+'Ith6y Ib6ootiiel'duA.'J T No fi~d6'9er~icb`'bha1lxbe~alit~N$d'$ r:nrt ~<<.,11,~It -'1~ f4f,; ,,t {ar 'ri jf'llft,.hj f:; ,t7 ~211~~7 -i ~J!Tl!"11y 1jU~ '?f}! ~11f i.li jStyCa tt'f CI!C•~ E;,, k: RevbAfild J a llrff: ~'JJ'-;i .'j')] i•t4, j{f;>li~ 1?.T "GnI) hrjf4 ''31(i£11i'vil; i.-','Ji1 EUI) 11tvV ;-,brf03 t.:c.':rJjj 03111 All revenues recelVeid Von), thexopbiitiaAw61A theldystw?shaIVp- be deposited in this fund, and shall first be expended to pay all operation, and maintenance expenses. Any amd¢pielreaainlh# in this fund after establishment of the following funds in the f61ldW1ng16*Jd Wlea ?be'~ufBAtiNfBr dnyXldarf~113pu poeblitltlr rig flv) 0 1110 '7YO;1r, ~1f13 o IIx 4'r.;'jfixffl 7'fi.lo rjf!onr; ig:".lffllJ ,fifali Interbst3kidt8inkih IFund of fI' i'll+j ,'r ltaflols to lj'S filCj'1'S+'t ~Ita 11M) -1 n I'i;`L)-70..) f°?l o id1131},_ 4'j '.,0) 1 ~J:L(Jfl1;1 On the last day of each month, the City shall deposit in th".a fundI ah;SAount!~of, moneq not-)leas than th* pro rata, part of'•:hA nektIeaturIng'ihteiebt°and) pr ihcipal!paymeht' 1 , F+'71 t.t+ +1f:i f•'11 f?ff l;a i'.} "~F:7 tj iU'. f! ).rf1 !~I?S;',l fl{ f l':'f` (,r) ell. Ili yam' r Reserve F<sndt 1 I l,~li "i 1'i!I ,l Y$,( S, 1 J f. It J f; I' f r' 1 f' 1 The, Ci`ty4halVmaintai,fi►in the>ReserV6'++r~ndf'aah!,anotrntinot}leam thair'it:►b') a►e~?a'~~~ a"f~fiuxl~ 1~9uirefheRl for# the yaye~ntf 0 it p3'iribi~ pal and interest on all bonds outstanding, The Rohetiro/)7Und)'1 A40 b }r ] V::. 1P~ 1,7~7 K7777777 I c`fty ax: Penton,; {Te:cng, NOTES PTO FINANCIAL STATNMENTS. (CONTINUED) September 30, 1977 and 1976 C - LANG-TERM DEBT (Continued) shall be used to pay principal of or interest on the bonds due at any time when there is not sufficient money available in the interest and Sinking Fund for such purpose, Monies in the Reserve Fund may be invested indirect obligations of the United States government or other investments specified by the bond ordinance. Wherever additional bonds are issued, the aggregate amount to be accumulated and maintainod in the Reserve Fund shall be increased;td"equal the new average annuitl requirement, Such increase ,hall be accumulated by equil monthly deposits over a period not to exceed five years' and ona month after the date of the additional bonds. X! J. ~ '..'111, " a'J la'.I )'I !i. 1-. ~5. i f 1 t Deficiedcies=ia !Fu,t1d9n :IYIE.I{>:i 'Sid ~ ,:'~TiJ }I, f, fif,,'e r •_tE ;r r ~,t.~: Iiiin)any,month',theCity shall fail Ito pay: into: the. Interests: and :!Sinking • Fund land ~.the : Reserve f Fund rthe , full , amounts required, amounts%equivatle,Igt, to Vohcdefioisnciew shall be<set apart!~_and paldlintg, s4id ifunds-efrorA(,the c,ftret :available. and-unallocatel revenue '~,of•itt{e following, month 4r, imoaths. To ;the extent necessaryj,fithe City shall (Ancreasd.~,thecrates ;And, charges fo.r,`.. servtees,oftithq isysteta to,malka' uptsuchideficiencyi 1 :`.tom; 1 Jf? 'iE f ,7 L Additional Dbbt~r ..4 AO'I!jrou )t 3. I3l .j.;'i, No1additidnal:~borids fAhall:be=-issUed(by~4hd WaterctfidI60"r ) Syst1flITFugd unless' amdng.othdr thingoot gllrot )thee above fifnds•Icdnfiain`)th6l-alsounts of jmoAeyzrequirod ito< be%on fdepgsit therein;44nof,cettairt[4inan6iX1 ratiod:-rAlating:to debt ;coverage are+mef~ IsrP$e..~".I., Afj1~'1 to °)IfIJ, Ik1f.II!tc-ri~~d)1 1 'ffj~3'. r•:!'3 't 11 P ,j _J17, o d ) 3 +y 11$() i I is r. •r .r: i_ i 1 ial s~ t 3 t~ I3 f. t~ r t WtinrAugustiandi..Sbptenberkof.j3977,j the City iinadyartantly, ) h3 )fallbd td makef)ths required,transfert t0'_Ith6f lateregt l dndf.. Sinking Fund. This amount was subsequEritly paid: -In!October. j D - TRANSFER .OF sEXCESS REVENUES :FROM THE, UTILITY SYSTEM FUNDS ,,TO)THEEGENERAL'P"(D, Thdj CitV;,:C4a*.4tor it Ilows, trailsfets of ('!excess :revenues" of',the' utilitytsyitems to the.:General !Fundt;in+,anittmourtt not=jto,, ! + I' fr,,l+ exceed isix1percent 0lthe.'ldeicr,itlvedlteretlt!llin the utility systems. The City Attorney has defined and, into rpreted Ithe?oj.. A-24 I City of -Deatorit :Texa's'' NOTES TO PrNAYCIAL STATEMENTS '(CONTINUED) September 30, 1977 and 1976 D - TRANSFER OF EXCESS REVENUES FROM THE UTILITY SYSTEM FUNDS TO THE GENERAL FUND (Continved) meaning of "excess revenues" and "net investment." In 1976, the transfer from the water and sewer system was limited to four percent of "net investment," and in 1977 no transfer was made. E - 00MM I74ENTS AND CONT INGM-4C IES Litigation The City is a party to a Power Sales Contract as more fully described under "Agreement with Texas Mu_ nieipalJPowee Agon011,, (TMPA) below. The County Attorney or Grimes county has inatituted an"actiont--on behalf df±the _Staterbf,Texas,':which, , among other. ithingsii fseeks!to''declarelahe statutetpursuant(It* *hich,4WA-was~drdated undonstitdtionaljj~ td 9ppdintta°:redeiver t6 dissdlve=TKPA acid }atfeot :payitent 'of cits fdutAtatidIng obligaK tions and Ito compel a.refunding, of fcertain(Idnds,.p'aida.by~the City?and other Veit Log! to TMIsker.,The Di'dtrict_#C6urt.~has-,entered a summary judgment >irt ;fayo~r.' of !TMPA ,7 and the - City f±however j ,vhe case is on appeal in the Court of Civil Appeals. TMPA has issued approximately $50,000,000 of bonds to acquire land, sinexallw rights and begin construction. The City has guaranteed approxi- mately;$lO}OQQ;000'e'of~: the,,b6nde~issuedi 4.;,In.~the::euentitbei.ease is settled 4unfavdrably to TWA, ,,th*(ctties forming the'jTKPA<,,J " could,r posiibly dontihue.ithe-jpro3eatlunder(ai.di fereattitorm of) organizationt~ (Alterdativeiyllif TMPA(vadididealved~,tithere,iwauld be some presently indeterminable value of TMPA assets which)•rr; could be offset against liabilities arising out of the guarantee. Consequefttly'jFneithbr thib *M6mel'-of the) litigation;<, the;ulti~t mate liability,~to Ith6ICity f,:jifsjany,t notothe funds to be Inffbeted In addition to the litigation described above, the City is one of four -nameddefendants:ifi a:prodddtiliability case'arizing from the death of an inmate of the City~JailJt'1he aggregate damages claimed by the plaintiff from all defendants exceed the'City's insurance aovbrage by approximatbly:$500j0OQ }'The City believes that it;hasza;-nuaber4 of, .deidnses avai1gble1and,: that Irkii6yocadej!;thbICity! 9.1liabilityi4ill not-exeeed its :r. insuftnbwcoveragb.f>rtr A-72 r ,i City of Denton,. Texas NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 1977 and le76 E - COMMITMENTS AND CONTINGENCIES (Continued) Agreement with Texas Municipal power_Ag_ena During September 1976, the City, along with the cities of Bryan,.Greenville and Garland, Texas (collectively referred to as The ,Cities), entered into a Power Sales Contract with the Texas Municipal Power Agency-(Agency), a municipal corporation and political subdivision of the State of Texas Under the terms of the agreement, the Agency, which was created through concurrent ordinances of The Cities and which is governed by a Board of Directors consisting of eight members two appointed by _the gnvernlag -body of,segeh city, agrees to construct oracquire ''eleetCitas ric jbneraaoperiod plants to supply energy power and of not, less than 35 years. The Citdes'havv agreed to purchase alV,their future power and 'energy-,re,7uirements in excess., of the amount ,not generated _by;.their systeQts cull-,'X rently. In existence fiche the..Agency. at prices intended to cover:. , ,(su); _the- 4erating costs of the, system and .(b) ,the retirement of any debt incurred by ,the Agency., In the,,ovent that revenues are insufftoient to cover all costs and retire the, outstanding debt,j each of- The Ciici►es. has guaranteed a . portion of.A he unpaid,debt;based, generally,-upon its pro rata shays of the, energy, delivered to. 'consumers in the prior operating. year.-. At such ,time. ;as all 'of tho outs tanding.-idetit, of thei,Agenpy is retired., ;arid ,.the, Agency. is .dissolved; oath ; , City will, be: entitled to an undivided: interest n!thQ-)r E property.. based upon its pro 'rata share at ftotal payments During1977 the Agehoy issued a0proxiniAt8lyf$50j000,000 'of-! bonds' to,begirt construction-, of ka lignite~coa.l-fuel.edr'generating plant which 4d oxpecte'd to.be operational in 1982, It is'' anticipated that the total cost-'forithe'acquisition of the lignite and the physical facilities will be in excess of $50000000000. Accrued Vadatiot and,Sick LoaVel } F The City allows employees to accumulate unused vacation (up to forty days) and sick leavyo (without limit). Upon termina- tion, any accumulated vacation time will be paid 't6 th44 ' l le: I`i 0 employee. Generally, sick leave is not paid upon termination but will, be' paid'only. ulpdh illness ahile,.id thale*Mplny df thb' City'; ` p~►Y`suatst ftor~~neVally ~ ttdcepted'ucaount i~,tg priaoi'pies ~'a ;AJ1 City of -,Ddnton,`~Ukas NOTES TO FINANCIAL STATEMENTS (00t(TItnl O . ' September 30,• 1977 arid. 1978 E - COMMITMENTS AND CONTINGENCIES (Continued) amounts paid for vacation and sick pay are expensed when paid except for 'enterprise and intragovernmentai service funds whore vacation pay-id accrued. .The `dolldr amount,ofe uhused -1 and unaccrued vacation`and"sick-leave at current pay rates totaled approximately $125,000 and $950,000, respedtively, at September 30' 1977, ' F . LONE-STAR GAS I r' i1 is f! f1 7 ' f f~ ~ 3 l . 1, 1•" ` I ~ o l( s During September 1977,, the~City,entered into a' new gas sales contractwith Lone~Star•Gas• CompanyI (Lone'-Star),.' -The agree'.`, ment•, which (providesI for' gas through 1981-,,:is contingent updn k approval; by'thu.Texas,Railroad Cbtamission, T'The cbntra'ct;,ui !c, requires lthat the,'City estimate,,itsF future useI:and 'provides j.,s penalties if, a:otua11 usa'ge:(id loses than 76%-ofo the 1e13 tiMata~. The City, Kas,'al'so.,a®;revd ito;,retecactively pay, the inceeaded ~.'I price,spe'c'i'fied ini'the' noWl dontraot' for 'a1S13 gas received .F, ' ' subsequent td Apr11' 1'f' 1977:0 ulu w k Jlioi '.!°(3 . ~-l III), r: ic.;p:J r l f~ ll'j This, c6n tract. traplaces -a"previdlte',contract (WIth,,91milar rterm►.1. Pursuant to provisiOds•`oflit,he'old♦,bohtfadt'j,,Lono,iStarw had : iwj asserted.take or-pay =dofloidneies tiKl excess of: $2,11800,000 jfora ca'leddaZ }years '1976 and:1878. XThey=Olty ~be1i'eves'rth$sal iieftw e. ehaienIto01be.=iAvalld.,and1had filed duib-to have,,;payOnts j(, c1 de pursuant- .td thu>°ai sdrtiori loft approki"telyi~$308 000 returned:: t ;Condurrently with ei'gning+ the` 'near :gas sakes scour: t.~ tract, Lone Star agreed to refund all payments made under thQc:t;ite,43' Rqy: Pr~vlsl4no. ;lthef,4ld cgntr;~ct.lsnd,tha. City4irq s,-:iq~t.urtb its. ra_repd{.to x lytld to cue.toalexn: _a;IpoxtIgn at)3tho,,'4 , defiolenoY Pxev oua9iy, Da~a~ed:tprQUgh.t iThe,ae,;xeleases ,nret)t..f t contingent r,upon rsppr4,va,1, ;off the,;,now ~gea, sa;l,as .,c4ntract:~~~:If r, r; the cant raat Ao Inot, altProved j ith9 :Olty :c.:Jl,d'(Pei assessed 140, i 9 additional take or pay penalty for 1977 of approxi.ma~ely,ow. $4,000,000, which along with the differences asserted for 1976 and 1976 would be passed, through Ito f,0,U0tQRerA.,as paid to Lone btar. _ !)f 11; of:Y ".['i!if- r`f ~ !1 "'!(i~ ~;j ~1'~..ri 'L (f C)IIE1;7~ r}'F r":~ :)!r', fii7r1 4{~~f;17 ',~"1 ra`3 Q1 G - PENSION PW,NS f.,? "'0 ! I i v "ili rloi ~ o.v is +a r.fr rrr, , ; ~ ,tl~,! l The City,participatos In n pension plan sponsored by the ,!-f Tsx4s(Municip4l Retirement, 4ystemi;t !Bhe:lP1A11)44.4, lcontrigtk-r; tory plan, covering substantially all City employees except firemen. IA•74 City of Denton, Texan NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 1977 and 1976 G _ PENSION PLANS (Continued) The City's policy irs to fund pension costs accrued. The actuarially computed value of vested benefits of the plan as of December 31, 1976s did not exceed assets of the fund. Total pension expenso, which includes amortization of prior service costs over 20 years, for the year ended September 30 was as follows; 1977 1979 General Fund .11 Electric Fund' , $1 000 $ 840000 000 t t l ? t ;!6,°00000 33 14,,000 Mater and Sewer Fund 7,000 5,000 Working Capital Fund $180,000 $138,000 The firemen are covered under the Firomen's Relief and Retire- ment Plan of the City, The plan is a contributory plan with the City's portion totaling approximately $28,300 and;#651000 during 1977 and 1976. It is the City's policy to fund pension costa accrued which include amortization of prior ~a. tce costs over 30 years, The actuarially computed value of v..U&04 bene- fits of the plan ac of December 31, 1076 did not exceed the assets of the fund. A•75 ^ a i f. is ~ !1 . ,1 A 1 ~r l 1: r'r [ Y 11 1 ~ i f t a ~ `l 1 1. Iel , r- Sl 1 r #PAGE LEFT BLANK INTENTIONALL i OF Q,0 IJ I UQ,01F J- y^ ~ Iriit!"~ )'fh~r% liffl: ! 3jF;W jf, r hyi... l~r ra f t)'fAf4 b'SJ; .T)ti"~`r~w x21(1 I°. r' i } fr 1; }11)J. F'f1 ~9 I~iEt~t f7) t.(f7t 1~ q q VV(If %'i rCl ').'f'J "[.1 "I G'.L.'[f~ I.j 11 fl.i fA.s' ~'1.Qi`?Ir ~)~).1; r~f•! f{:}1-Pi Y! ~'}'i :~'~'?J, i:: r~•'f ^ t)dpv t)'J t I F ! Oc 20 OA %:j Eel %e i t?IIIJ [)i7 try A•76 r .s?PENDIX B CrfY'S ECfJNbMYC'0ACWGROUND VALUATION AND DEBT INFORMATION (As of F&WrY t, trra) $452,232,03$' 1976 Ulf, Taxable ya►lue - Estimaked $271,319,24 1977, ssessed Valuatioq (60% 04 Estimated Ful}, taxable Value) ' ~ 5 l l,9(14 Total eneral Obliga4ioi! Debt 41]l~A~; Less• Int~4rest and S'pls;ing Fund NETr1~E T. 5 ~~rYib Ratio YoW N 'toryO? AssessedIValuation'..... • 14.2S5b Ratio Net Debt to 1977 Assessed Valuation.",.,... r 7r,fl ' •Pfai l~ j r. r_'r 4!tl <,J 99 "'tirrlmo go It , , 94! it a'pitat"A'is~bestdI r(luation Per Capita Total Pebt ; $248.52 Per CapitA Ne`t Nbt 52o.su' Area 33.2 Square Iv}~les 1 1';orc 1: Pursuapt to authort y Xrigi~tf4 by Section 1•b, Article Vill of Ibe State Constilutiopl twhich became effective J+tnpary 1, 1973, thi,('ity, bas granted an exemption or s6Am of assessed vaiNy4oa to property.ow aers over 65 years or ago. Ths vOue of properties exempted, $9A89Mo, has been deductgd from the US.Oised valuation as shown gbgyc, / { <<f t Nare 2: The Legislature pursuant to a constitutional amendment and Article 7150), VATCS, mandates an additional property tax exemption for disabled veterans or the surviti3nfr ouzo children of@ to deceased veteran who died whIIa,fO'yf,d9~y JP1tkf Ar oir>'9ar, P,4'Fe/"PIiP from 51,500 to either real or personal property~w th the amount or assessed valuation exempt ranpi $1,000, dependent' n 't amount ordisability or whether the exemption is appikaible to a surviiviS391,8"80. or children. It Is by the City,th4l,}he reduction in ,,tW,"d valuation has WAOW eanhar u!,Y o'(11,6<'uk Norr 3: The above statement does not include $6,585,000 Wei- Rnd Sewer System Revenue Bonds, nor $16,902,000 ElWrio R, venueloi6dii ris then Bonds'ard p, jab% solely from the i*t revenue of the respective system. Int!ltst and SinUn"y 1F'dnd and Reserv'd Fluid to the credit Ion et~Wate}ri knid eSm System, as of FebraaFy 1,11+18, ambUbt6d to 5280,820 and 5$2$;630; respect' y Fund and Reserve Fund td' 14 r redit of ft Etdctric System, ae for ebrUary 1, 1916, amoubit f al $731,668 and 52,156,577, respectivelvr. (00) WY, lord ?D1,01 111 t 1e rA 14111 L`f1 :1 aril rlk''.riil ,.ill l~, I,~irt i)i U~ 111!711 ,'r , frrr'7N f. L. />>il.{{ Ir')71,71)fi1 oil '1• TAX DATA (Year Fi/iq Se"ttiber 311) ' lee'},dt1V~IQREa~f;T~1~#t4TE, S latered A Total Tat Assessed General Slaklnj Tat 16 corrtat %Total Year Yalustwas Fred, ~FWW Rile, Collealons Coneetbns 1969.70 S 71,668,297 $0.6501 $0.8499 S1.50 93170% 97.62% 1970-71 76,608,456 .6333 .8667 1.50 95,78 99.42 1971.72 83,132,253 .8285 .8715 1.70 9.49 97.93 1972.73 95,155,723 ,9044 ,7956 1,70 95.65 97.42 11 197 102,222,840 .8 60 ,80,40 1.70 96.54 48.47 1971 75 112,158,726 .8978 18022 1.70 96:56 48.03 91. 6, 124,327,113 .8174 .8826 1.70 45,05 97,6 1976.77 136,540,625 1.0938 .6862 1.78 9S.23 99.43 19771•78 271,339,229' .7728 .4672 1.24 Inproceuofcollecliolt,: Increased Basis of Assessment from 40% to 60% of Actual. Ta;;.a are due October I and *otpe delingyept,4 i~r ,I nugr 3It,t plit payments are permitted: first half by December 31; second hpllf+~y 11~arch,31, b" k"ounts are: iip allgwed. Charges for penalty and interests 0 rgade as ,fohoyvs.'' latertsr Pena 1] Interest Prosily February I 44% 2% August 1 3!4% 8% MitCh'11._, !r X1`1 99ti1 5%, d seemberl o.4-.%, 896 Oci6601 „CA = "8% Novei6boI r.SIV _ 8%. June I N% 9% December '1 5l6%,j' 8% July l 3 % 8% January 1 6 % 8% 1 i/,f ,'I•, 1, ~„'~Vj,. 11,E 1(Y.. ,;aE i. ..Il Z.ii 1 ii!... _ i~1 f 2 }i~lllfS?ill Yl t (rh✓,f ~t11 i'!>71G!.:P111 O~~ t,•.. i. A"q Lo el ft{!1 141/ i1 3i'Ih tl :'I fie~i 1 1' J 11 I '11J I~ S , .l N~ ..11 iV :7 . 1t .S/p(~~k.441o Ti~l,'1' xl r , in <<:1 (t' ~161e~f.. IA ekFd I✓J, I: it `'iGwq`G.b. I l~! IdTAbe Seyteokr30, Vahotksa Funded Debi Yalrallons ,rf`i`1H ,.'7 11131E/r IE;. (lf,%1.1,1' '1 i ~•Ifr. 3'I I{ Ji ?JI rt1 1 1 11970 i r', c ~I ' ;r S R1,.8 ,297 ~,-'ll d1 ..6.283,000:, ~l 8,74% 1 i I,76y, ,456., zst t -[6,9931./0/yy(1yy~ 1 „9,.061 ~ il'Il:•'if {1~14'%I)fii97~':1111.Y~,:..7'i:'~;$3rIZ~S3,.".t, Elf>r,~.~VIVA6..NVl'1,b ~i?i 792 a ;I Ik. A 147 .'.:1u1. ,%'r{ I (,93rISS,725,, t:, ,Ib,iSi,0001ta,,'u 6.41 . I; I_ , 1974 102,222,940 70575,000 1Al t 1975 112,158,726 7,187,000 6.40 1976 124,3270113 10,195,o00 8.20 1977 136,540,625 12,024,000 8,81 197P0 21.339,229" 11,904,000 4.39 *As of February 1, 1978. "Increased Basis of Assessment from 40% to 60% of Actual, 8+1 1977;ASSESSED VALUATION -r,CI ASSIFIEp t #77 Aaeeaaed %of Fen Vdratio„ Taxable Valve REAL PROPERTY: (Residential &Ad business land and buildings) 5213,135,760 75.00% PERSONAL: Merchandise inventories, business furniture and fixtures, and banks 40,140,514 14.29 Automobiles i0,503,764 3.73+ Mobile homes and aircraft 16,94$,482 6.04 $280,820,520 100.00% Less: Old age exemptiolis (9,089,440) t (3.24) Disabled veterans (391,8801 (0.141 1977/78 Net Taxable Value $271,339,200 96.62 % f t'TARATE*I NIITATiON ; All taxable property within the City is subject to the assessment, levy and collection by-Op.City, of's' continuing, direct annual ad valorem tax sufficient tQ provide for the payment or principal of and interest ? all types of tax obligations of the city within the limits prescribed bylaw. Article X f, Section 5, of the Texas Constitution is applicable to the City of P'~njq~ attd limits iwts.ncimum ad valorem tax rate to $2.50 per $100 assessed valuation (for all city purposes).'fhc CiIty operates under a Home Rule Charter which adopu the Consitutional provisions. MUN]QPPA SALES TAX (Ef drove April 1, 1%9) z Municl)r41414 Axes are remitted torth~ P*t riionO, byllii~tate Com j5troljer,11 "1r aeddc ion of a" , service t,'q. t'he tullowing coili6lo'ns 'ere the et am6unt refeld by the City fbr years 16dic tld 9i o! lwaleriof ii! r "•I'v' alendu Total Rlorel „ AQ Valwer Veer Collected ax r Tae Sate Per a a 1969 S 5590693 51;51296 ' $0.7788 $14.40 1970 607,716 52.89 .7933 r t A.Z4 1971 711,871 150. 31 f. if .8:63 fir'' it.BS` 1972 ` 778,333 48,12 i' .8180 ' ii973 875,564 50.38 .8564 19.6$' 1974 926,080 53.29 .9059 20.81 1975 r(A ,000,932 (.>i xi rr t182A.),,)~r trt !r t.8924 A t 1 'I 21.39 1976 1,194,335 56,66 .9632 25.28 J977? '"11254 452 19234 19 3 l•'; l•.~ljl?t',h~Y,'.i~`'t1~'if1!r~.,1=rf.1i1711i.., 1~7tlf'J /F f1;~~lrr~l~.~~~rt •)I) , 4 ESTIMATED OVERLOPINO t''IJNDED bWf 'PAYA`BtE FROM ASS VALOREM TAXES tAa at F+rnur i, Mill Tacit Ch" W-1-1 Sardhlda Dck ApekaMv Dek City of Denton $11,904,000 100,00% 5111904,009 Denton IndeFir dent School District 9,112,175 78,44% 7,148,061 Denton Couoty 1,723,000 29.17% $03,!83 TOTALOVERLOPINGFUNDED DEBT S[0,555,244 Ratio Overlapping Funded Debt to Assessed Valuation 7.21% Ratio Ovyrlapping Funded Deb(to ~siimated Full Taxable Value... 4.32% P4r,Ca'pita Overlapping Debt - $408.25 TAX RATES - OVERLAPPING SUBDIVISIONS ' 1977 1976 1975 1974 197): Im 1»1 ire City of Denton Sl!t2 1 >ifr%;78 $1'70 r 51.70 $1.70 $1.70 $1.70 $1.50 Denton Independent School District l.5 2.00 1.9 2.00 2.05 2.00 1.99 1.99 De'ntacduntlt° b7 x.95 X95 x.95' ,93 95 - .93 195 .10' 12 ate ofTbxas f7 r 17 .it 21 32 .37- TOP t& 'CAJ(f'lt1'LR 14 or TauMe Ta:ark y dud" yarueke NaneorTaapyee Enre •r . hh Qepe(AI.TeIFPhQ" Co Qa►1~ Tee p ,pne ~lulny , so r i 98% £~q ' u~pt>~enkgmp~ri~, , V}ledilntiipren~ <inu~eftuSSra, 1 J,$f ~8 d 1 .47 First U bBank` 13aak ta:Awford Building Corporation Shopping Center 3,104,400 1A 4 Menton County National Hank ...,,,t.+ Bank 2,780,960 i,02 Moore,l8usine~s Forms, lnc;' Bueiness Form Manufacturer 2,676,090 ; 0.99 New( on kiiywr CommercW property and 2,650,830 0.98 OfficeBollclin$. rys, k•~.t iral Lone S~~ QH company Gas Utility i . 2,004,990 4;; 0.74 Acme Brkk;Company Brick Manursgtltrer ; ; F 1,797,430 i 0.66 Wettgatq ~$pspital R Hospital F F s i .628,340 r 0.60 ToTA~,-, $31,313,110 11.54% INTEREST AND SINKING FUND MANAGE141ENT INDEX '10 P Genera`'661igation Debt Service Requirements for tax Year Ending Septembef 130, 1978 $1.~~3,512 Interest and Sinking Fund, All General Obligation Issues, September 30, 1977 S 167,517 1977/18 Interest and Sinking Fume Tax Lets! 95%Collection 112;4,312 1,371,829 Estimated Surplus,,,,,,,,,,,, , c $ 113,317 > i t i r + ESTiMATED' ASSESSED VALUATIONS' I Bud as an of F.ttlmotd Folf Ytlrre) QQ ~QQ 1979....r 1 .............r.... 1322;318,W0 1980..:,,., , 351,342,Q00 i9al ...r 383,01 7,000 198 417,489,000 AUTHORIZED BUT PN14SUFP G£NE$~f. OBLIGATION BONDS Due Amoost I met Uolmod Porpse AstbMn4 : Avdwl if To nil if Holoxe Street Improvement 12.18.73 S 6,000,000 $5,500.000 S 500,000 Street lmprovimicht 2.28.78 1,815,000 - 0 1,815,000 Library Bonds 2.28.78 775.000 --0- 775,000 Police Ftcihti4s 2.28.78 880,006 =-0-- 880.006 Fire Fighting 2.28.78 530 000 ` --0-- ' 530 WO 110,000 ow 000 $4,50: WATER ANp SEWER SYSTEM OPERATING STATEMENT Ffsnl Yeu Fde1 _ _ SepteoJtr 30, SWtmber 30, Squoibe 30, S41AAe0,' SWembet 3% September 30, 1977 1476 1973 1974 173 1972 f ; , ~ I I p ; --rte r ~ I r-+t?-+•~'- , -c~-r+at- - ~-*-r-1 1e00,rt Si.Slz,7as••• f:,J2J,i4Bie"'ti Ei6,361 51, 133)1 L74tI4N! 11,577,201 peeper (astome or Dtbt Smice-....... SS I11 11 a1 S 1907'034 S1t760 ; 90,654 54- ! `11,251 f 3 1103) Saar C„uomers 11,637 11,4% 10,961 10,753 10,641 10,433 411.1. i'rr ? f flfl'/++11 !Water and sewer Crates increased, ~r(Fctlisverlltl2r,}l9 . **Water and sewer rates increase, efrective N%erip i97S. *"Water and sewer rates increased, effective June 1977. 1q f,h9rj 'kt ~fl~ ~r{?Y'I:P,IP~ I ff !}{ri. +,Si Aver, {e pgN)4P„ttP 1,1 SEtRequirf opts,1918.1 8 !rfrlrt,. r rr 1,'~rrw );t 454,861l tm CoverPga p /1;i(or~18e Rcgp~£~'f,<►t}~Y 9.r3~0-~7T, el Inporni an's'~Anr, 1.91 1't M14F~ ~f dpal and, ~AjFr]ji~ f,9uirQ9 304 $ 1976 , .l{),,.I~ e~ t ,y; rr, I, ,l•; $ lip Coi e o MMaximum ulftments b 7 Net 111Gm4 , , , 1.28 Time 8 W y ? ,....3 ,1 ru I1VI' 1 Water and Sewer System Revenue Bonds Outstanding , $6,585,000 Interest and Sinking Fund, 2.1.78.. $ 280,820 Reserve Fund, 2.1.78 ..................u.tl.r~, S ,.I.l+t.1i,............................... $ 525,630 11 /ll. {,'11!.}!1'!$+$1 ',117+tiJI11Sfl tC II J i!.yf': Ilr1U p:, Jr'Vr 1. l w7!)+C9✓)'r{ 111, 1,101 rl'rfn ..fr-t..SI ,.1 1i"',,1 ~,j -'I i!?!'. r,11 Ill-tr~, i!},I 1r' .t .{nrilJyY~ k. fl i'~1 .t,1, tA: i Irr !1. t. ii;il .,'h"~ 'r'j f' ) 1111 '!i7 l!71;L;I .,`L{i..1 pal d1i./ ,Y'~1,'il''i`'1 '1 1, i ~1 ✓6 M,I vi oN tl '•i:f r, 11 I' :It'1f1 f 1 ) 7r' i 1< (!41}1,. !j ~'1. h,'tl Irali'.<<1 I /I!~ i~.' [rl!) -.`I el"i If I I IfI 'I' 111 f I I., i': I J.f1 -,[f t: A }{~'r7j , p1tt ~ W 1 fir? AUTHORIZED WATER=AND SEWER REVENUE BONDS prrpose ~rwjj~rl~ A~zed To Dove Bslsoct Water 5.16-`!2 $ 5,275,000 53,475,000$10100,000 Sewer 5.16-112 5,725,000 325, 5~200y000 SI1,000,000 $4,000,00 57,000,000 . ' ~''l4tl)IVTIIii.Y WA'fEk RAT~S F.Rectl+e Jane 21, 19'f7 RESIDENTIAL USERS laswe Chl Limits Ortside ClIJ tmip First, 2,000 gallons $3.25 (Minimum) 200%of :nside City Limits Rats Next 18,000 gallons .65 per 1,000 gallons Next "30 000 gallons,;„ .S per 1,000 gpflpns ; All Over `50,000 gallons .50 per 1,000 gallons ` ilfll,". )11t'S'i(II/I COMMERCIAL AND INDUSTRIAL USERS to4de Ciro owsNe a NY Ursib 4h t First 2,000 gallons $5.00 (Minimum) 20096 off nside City Limits Rate Next i. 18,000gallons .65perl,QWgallons• Next 30,000 gallons ~ ',55 per 1,000 gallons All Over 50000 gallons .50per1,400gallons MONTHLY SEWER RATES Ei~ectl~e~`Jtl'se 4f, l~'TT ~ d 116iei on"A ater'CoaisM jtW, n _ Resldes4lal Commercial art ladow lal First ( 2,000 gallons' $2.73 (Minlmurt~? tst' ,606 j ion ' SS.OdklNinifrirrti) e>l1 5,000 gallons 42 pet 1000 7V pe, allbdd ,V611 gslid~'s''{ .41 or 1,000 galldn's Neii 3,000 gallons .32 per 1,000 gallons i 9~'v hallo ' 92 'l,uoo galfa~is (Maximum Charge), „ t sj . rf t ,r WATER AND SEWER SYS'T'EM Water Supply. Present municipal supp!y is obtained from both surface and underg!"Ad sources. The City has previoust; dcquired conservation storage rights in nearby OarJa•Little Elm Reservoir which was constructed by the U.S. Corpt of Engineers. 'this reservoir contains a totsl of 435,000 acre feet of conservation storage, The City of Denton holds rights to 21,000 acre feet of the storage, with the balance being held by the City of Dallas, The State or Texas has Issued a permit to aw city or Denton allowing to 6.6 s, ,~~r WO-M Plasmas -7 ' r average daily Withdrawal of approximately 10 million geflohs. Recent studies of the reservoir indicate that teen' during a critical deought period the City of Denton'i:portlod'of the total storage:vrill produce approximately 5 million gallons per day. Although surface water pt6vides-ft majwparsro4,,total requirements, the City has an underground source consisting of nine deep wells drilled Into the Trinity Sand Group, comprising the Paluxy and Travis Peak's and%,4M maximum estimated production which can be obtained from these wells is 5 million gallons per day, and the average daily production is estimated p: Z million gallons per day. Future Water Supply. Long range plans of the City of Dallas to provide in adequate zuppiyof water in the future provides for the construction and development of the Aubrey Reservoir In Denton County, I?sated fmmediatefy"above the present Gilrza-Litilt`Elrit Reservoir on thd'Elm Fork bf ibb Trinit} River. The proposed site of the Aubrey Reservoir is located in Denton County, adjacent to the dly of Writo'n, and it has been determined that the most economieel solution to the water supply needs of both cities in this particular are, quires the maximum utilization of the existing supply in Garza-Little Elm Reservoir, to ire foildw6d 1 ccortlinatod development of the Aubrey Reservoir, Including an exchange of storage between the two cities. ,Accordingly, by contract dated November 19,1962. the City of Denton entered into an agreemtnt with the City of Dallas which provides, in part: l,; That at s tch {Ime ap Denton,'a average, annual withdrawal from Gams-Li;tle Elm Rwrvoir exceeds the safe yit d provided by its prf}an,sto fe84 right (see filet paragraph its this sectign) it will pay Dallas at the rats of 2'd¢ per 1,000 gallons for any such excess water so withdrawn. 2, That Dallas shall be obligated to sell tfse biq 6fbihtdn'hbt to excc+ed ad annualia nount'equel to an average annual rate of 13,000,000 g411OM per day at the, established price of 21h¢ per 1,000 gallons through the year 1980; subject to an extensldn'of t me mutually agreeable to'lhe governing bodieq ~f bothlcities. , . i t ,r r~i 4 , ~fJ~7 IS ~ u,~yt.~ 79; 7lfl'. ) !•i!ifiV r r ~ '.'i aka ,.1 •t, ' ( l 3. That the two cities will cooPei05,e 10 financing and to4ttubtion of the proposed Asbfo Reservoir when required; the City of Denton to pay not in excess of 26% of the construction cost and the City 6f Dallas not foss titan 7496 Water to W stored ih the reservoir shall bd proratedia the basis of each city's assumed portion of total cdr orudion costs when the reservoir is construc+ed. y.6) , t ,i l ; Qevflopent of the qubrey,e',tryojr3a,include R,9aUPsr9Ad A~Jtton'} f94g RADBe Wltre; Studies, and it is anticipated that coiistructioi of lQis,fac}lityy+ijl bygip;POT: tp,Ik4Qt...CPetfact,ne$otiotipas.0.n underway between the two citin, as sponsors, and the U.S. Government (Corps of Engineers), for eonstructiott o(tLo.reaervoj f, f t j+, IM4i Ipate~ tine ProjN11 wiil.bo,y4P>I WO on4ffnancep_by 00 PRY. menl for the storage of floodwaters, as we~l as municipal and industrial water storage, Costs allocabit to water storage rights to be acquired by the cities afa•currg9tl { (i{natcll pl approrjmatcly S,1 ;,QOO.OgO, to be due and repayable over a 50-year period followin, completion of the project, Estimated safe yield of the reservoir has been calculated at 8 i,l)gQ,l)QQ galiQoq pfr ay, of rylaicll,},g}grrnt, RsI n W.os+l4, p otjtJod lO teocive up to 21,000,000 gallons per day, This amount, plus a safe yield of 5,000,000 gallons per day to be obtained from At present storage rights In Garza.Lll le Eon Reservoir, %-111 be sufJictmi fo,Aef(r~,q s~yls,4ar{0tatr~ »'a{qri needs through the year 1000 Water Usage 7?t (r. rt.~.4x408/1 t elf ; };~NMy fr . i`f air r bay rr . c,•' , 41 d4- 4,13x,000 ,548,000 1972 7,164,413 i4,117,log t ! 1966, 1961 '1` 140700* ~ 015000 49W 6,636;901 0;1rS,pow 4 6,84'1,dbtl ` 1` ,6)a o { yket pp,,,,~~,~,l .r1 star-r„p ,t,i rl / ,(y~yr, ,~1 y' t ,t'; r'~•,t r, , rµ r~rii 19bh ~'a. Ssb6,41g ~f~r4Y3,0U1 ~9~3 ~,~1 ~,L6L 1,.1 ~,1M7 1970 6,483,57! 13,725,700 1976 7,264,000 14,080,000 1971 6,808,131 13,052,800 1977 7,923,000 14,119,000 0.7 . The City owns and operates an activated sludge type wastewater treatment laeility. The first element of this plant (with a capacity of 2 MOD) was placed in operation in 1964. A 4 MOD addition was completed W put in operation during 1971. THE CITY "lion Denton is the County Seat of Denton County, located at the apex of the Dallas- "Fort Worth- Denton industrial trir.ngle. The City covers an area of 33.2 square miles and js located only 38 miles from downtown Dallas, And 36 miles from Fort Worth. Economy Dention is . In the midst of a rich agricultural and livestock area. The hub utyof Texas' new "I:ahd orLskee, region, *hich providh Denton and neighboring cities with abundant water for municipal, industrial and tecreatienal.purposes.' ,One of the threp,,.rrlejAr univer4ity censers in Te s M rolhc, ho0c ofIve'rsified akdystrial intact{t¢ ' The site or the Nation's first underground Control Center or the Office of"Errmergency `Pf: oin6 and Offtoclot, Civif,arld Defense Mobilia:atlon :(rt , 1011 1 1 t;+ rs; . 1~ ~ t r , .One cribs key cytio in, the, economically significant Dallas Standard Metropolitaa'ArW Economic Banking j'WntdnV Mond divefsifiduedb,inlfly ia'fenect:eb' In"ttfe'ahdabte anndaf inobrne`pfe 6"W, estimated it Sl3,579'as' dornp'afed'with'lhe Stele 14ibge bf 3! ,I 17," f, +,n er,.[, Dentod Cbtifit 's EffcclOt 'BJ h IAC6rhd fo l'1976 lot'a 'fod a ~foMirha~eli534W,600 . r°' { I. ft ;P)f M fhRf',i ~l' ti16 ffi q!~iiilR t ~ FI 11 f~ f; beht6hk0(thty'Vreieil'sale W 1916 totaled $319,824,000, !u^, ~i'-I, Ci{1.; )e1~11~ 91~ r +(~f,ll rl~t i i)'!~/Ilv ifF~~ 11411 I, 1.I , la lit 7! r1'k 5t tJ'.rJ over 92.546'~f hou~e~elds hb'd'CSIA"lltcethbr iM' 8~ccs!'~Y SI0,00b llt 6kil 'Ai<, I Cj 1>11~ l 0J(1,) i` 7f11,i t b~~nChle1` ah~ {,~j PU lpYi [~alfb'n` U ~y afOls j Denton has noted a consistent populatior. Increase and a steady economic growth in the last three decades. Population atthe1940Cert~i~lplYwas11,192r..,stthe1950Ce1j 1itwss21t37; stthet~60Census A it was 26,944 , , end at the 1970' Census W was 39,874. The 1019 estimate is 4),900. f0 t 1, r II ' rr,i r' 0f The City„s p:fenfton tow r~ ~ fop rugo n Texas' ecoggptlf la~4er Is 4ltrjbp}e partly, to the steady influences of $Ri~jQMFntal 1~ yityrW iclt Inc des the year•hyAyjsf, xpansi QA„p~ t, a two St ~4•supported universities, P1r 1~r beeau}o;RCagch env of mental factor 8i it8 ~cation,l c~ a`rict} Eyral region, A. 4 (dl(},,~r,il,bl (1(f),t.i!,{r,`iPl ftf% .i f-• .r~ a r i~k)vl~.rl <NIFf{rf ~ I1 I fI I some oil and gals production in the northwest sgcdon of Denton Covaty, its inclusion in tkc.Dallas-Fort Worth JActroplex, its proximity to three of Te4ae largest rcterYbirs (Lake Texorna being only.40 miles from Denton), its excellent highway and transportation fecilitles, Its mild climate, and the less tangible but intldentild aspects of social, chltural add educational advantages that hove prompted professional or "white collar" workers to choose Denton as it place of residence. ? f . 'Industry and Business # A total of SS diversified manufacturing plants are located in the City, Some of the ldrgest'dre`9s follows: Nrmtxr'of Company Prodxl roploym FIRMS )rMPLOY!N021 1Olt MORE , r : Moore Business Forms, Inc. Business forms, safes books, etc. Yictof FquipmentCompany Weldipg and cutting equipment apd I PiEssur4v~l`i , 74,,. ~ Itussell•Newman Manufacturing Company W{omens and jgirls lingerie 8350 .i r,.loSlfn~~, jflC h3 1a $ch9o~,Fiae~rjn$4 ,I•tii 'r h45 t tll r',FtmEMPLOXtNO IOOTO199,ifi n: , !rJ, +':1 J119lCftd,'. 1, ! r'IIft 7, I 1 dl Acme Brick Company .(rb 1 Brick and tile;!, :1 fir. i90;wo Emconite Multi-color plastic parts 185 ,,i,.F,,1 iTrinitylddustrid> 4) ir.+: LPG fuel tanks r~,ur130 0MorrisonMillingCompany,ii Flour and cornmeal products ,~7s125 ' Ir. Turbo RefrigerslingCompany Ice-making machines ?I,EC•, •;irrr,'11100 FIRMS EMPLOYING SO To 99 ,I,~i Iar'~{Oil it~dldCBr$htc~fd,~ ~1 Lf1„'I su I I •+l ,t Transport System3, Inc. Trailers 9t)''`` Ohio Rubber Molded plastic parts 60 Jagoe Construction Company Asphaltic concrete (6~6,!;nl ,r,tl,, It,ftreenGiadtcompany }iI ,a (1a,)'I,.:PackiWnganddistribUtioii r;,i Io,ifn 'i .::!;13*50 t.!J art,IJt 'i)741 ,r1P7 It; )i"t,l!j !r ('h~j t:1;'I~ 1 )i r7q!'3ai73(J 1;J1`': liri( lie, i.iI11Ji TotaLl}bor, force employed by DMfon mgn4fapturers 4*oeods-3,500: Total aiifual manufacturing payroll is estimated in excess of $21,500,400. r,l „):;1 ';t,rl1 i ;11~ t ^x?c Ir~i:lit] s`h ni i.II tL 11; 1,1 :,1dulfir,e t- f,,: ,n6ixteda new,induplrial pis nts, hLie been looaloO )v the CitYW Denton during the Pali ten years, LWltb I the,deveiopment, of the,inottopoktara srla during the 1970si dipMaily'the' Dagas-Fort iWorth_ Reglonal Alrpgrt,!it is expected,that Denton's Iadustrlal'grdwth'*ill acWdrate sipt'>tcdntiyt'11 w,%4 R ;iw'1 ,epl i W '(t1.3r9 i711 Ilk tl,]J: .!1N1h a) Moore Business Forms, an international company, headquarters their Southern Division out of Denton. The Southern Division consists of 16 states from Texas to the Eastern Seaboard. Moons St wn* 9g 41~o Rf a lIe4.t}rlj}P.TIP10, pO ~f ®mtt pnA lrlistt pvmp~py 9f 01F,ki9d,isl ihp,world, ya E$ ,,~hftxum ~4trtfl?4St4A11~ iA ~~r!~'~ ~s!►rlrtfu ~~~1#in~ 1~~~~Aa ~ 4pUilfg f4ft.,Tile 1 not acrftty Is Wated on nlerstate 1416 way 0.1 anuticturing and production fl4wA,alehgi#pd,jp,a separate structure contsining 143,000 square feet. . ' '{i)~t.'3 (I i! 1~C 3~ ],i , rffl Vi l ,J? ttf lJ ~ ~ 1 Ctl l!'i'l rice ,qtr ,i, J If,; I t'1 ~Y7 FF14~9yyipp~~, frt prey F,91f~ ,,r!r,;,J4ar~yo9j, u ►ng.9l~nR.~~ c#oc!!ui f`aj r(from fail Francisco. A' 60,Ob6 squaro- oot adds ion to chops e1, o pat}taF tyccp~I gt~ fom ~t,$ in a'40 000 r(IMr!, tAl "eeuildtnl.9.P,CP I me~ru•Cec(ur~eQentl iirIbu~Ion Oi w o i~etCOrPpl" (4t y~"l r r100s squ re !E U t9~9 Acute Brick Company doubled Its production capacity in late 1965 and Is now the most modern, automated brick-making operation in the Southwest: Acme produces in excess of 70 trillion bricks'Lnnuallr. MorrisonlMilling Company produces Peacemaker Flour fnd Cornmeal primarily, which Is'distributed world-wide. Most of the grain used is grown in Denton' County.. . Emconlle opened for business in 1962 and is now one of the largest rtanufaclurirs of metal platdd plastics in the country. Russell-Newman Manufacturing Company is rated as one of the top 20 lingerie manufacturer in the USA. Turbo Refrigerating Company began operations during 1965, and is. now the world's largest manufacturer of Industrial self-contained ice-makers. J9sten's, of Oiratonna, Michisah, completed construction during 1969 on anew 36,008 s6uar"oot building. The new plant employs in exce'ss'ot 200 persons in the manufacture acid distrib-ition of school class rings. . Otterbuilt Division of Paccar Corp..ha3lichtduled construction of their new piant oti 80 acres of land in Denton for July I, 1978, Subject to amendment fcr technology the new plant will employ 800 persons in a 300,000 sq. ft. building assembling 12 diesel "trucks I*r day. Forum Plastics has scheduled construction of its new plant on five acres of land in Denton for March, 1197&-Their plans include employmont of more than 150 people in the 35,000 sq. ft, plant manufacturing molded plastic parts. • n-• t s + .:s r rl I 'f ;Trinity Industries completed a new;,?4,0 ~`gy4ro-foot building in 1968 and r,l,ade,furtiltr.addition% during 1969. i Indugrlal Future , Denton Is most favorably I :cited within 38 milds of two major cities and is, offiiciatly, a part of the Dallys-Fort Worth Metroptex. This area comprises a market which is growing at a rate three times the ;,oalionol average. Dertor. is fast becoming an integhl part of this dynkmic btdustrial complex: I A plentiful supply of skilled labor is available to industry in the Denton area. Total labor force in Roatoa;: CoumyAq :appf'oximately 414 A; with approximately 39,750 presently employed for an luoomploytnerttwpereentaga of only '3,996q•Thete ere No principal industrial dirt kVi J: Denton Industrial Paris and Raytor Industrial Park : i ..both of which have aeooss to more thkn adequate,raif and htghwdy facilities, and all nwasary utiliIlea. 14! l~i l,r; `tt:i . 1:.11 zl' rl!~,I, ~i 1 r l l .AgrkV Wre,&` ryr ,,rrr t i1 r;f . r • 1 ti ',dr )rtrf; i ;i~l `Iehf6d CduntJ Is oria or tho ffi&' diVeisifdd Iii 1111 Ure'coilnlies In Te,iad With' soil t "d~ees fahffi`d,g ftbm'ti:~ black Eo•dap'ian'dy'ioabf; a4ttl'~Add s'o(t; `a`rtc~`~tS WSt1•{'iii~~ah ideal canter fof'dit%~ri~0~tdfdrr4iltf~ 1 !~,1 ft0177:'tM)',~ I,trb ~.1~°111.,! .;.1'}tf 'I?(. f: 1 ; •r f:' i it aHif liv~t;~rk rllslrl~: Principal crcns are sotto co4rn, wheat, oRtsr oqqy, g i1n,sorghums and ppeeamts. Da~ry cattle, beef attk; sha'd'; h¢g ChfCkena k}I~i![FC~s t d►ribGt! a s~bsiar~tlal and ~ten~y il►cofnt aver'sr t~ i'o f tlrrrtirfr id 1ivt~tbCk' 6'-ofthe` lou~L,~7, r c i't ,1 i . x I 7 r ,UU1 t'O.,P I ~•.rt' t o F i ~ t r i 1: t. r~k ltn flr~tri`ttr'dtla 1(Vtt' 1t`¢~od52tif'bk'11`e~'~~t'xctr;ll,si!bdordgY I B+10 The •fexas Agricultural Experiment Station, Sub-Station No, 6, located about five miles nortbwest of Denton; is contributing to the prosperity of hot only the farmets In Denton Counly, but lo'farmers all over Texan, through experiments in imall grain iosearcif work, crbp rotation, paitures,' soil building; contouring and plant disease. 'j, . 52,400,000 Underground Cobtrol Center r " beaten Ii'the rile of the f rp~ Underground Contfol Centelto he built by the' ~edt'r'al C3ovtrnmenl IA the United $falei.' This tente(' was'011nipleted at• a cost'of S2,400,000; ` ''it eondsts`of slit aboi•e grourid''frangible+' buildi'no, for infiance ina 011 during Norm, operations; and a two-story udderground fortreis', 142 feet wide And 172 feet lodg• The strumure his its own water' an infirmary, first aid station, and communications, headjuarters• Site for the structure Is about three miles east of Denton. Th'c' hu'c `underground gentet's iii' kilplon 5'1-10dgosrtars fof 'the OfNe;of'Civil' apd defense ~tobifiz6~ib'n a'n l is dsi$ned'iq ros~st nixglea bast and radiation t~egloh S c4~tsisls'of `faxes, Oklaho:~la'; stkarisbs,' i outs ada and thew M61, 14'104 of ern'eraency else n6W ceo(ef will ihb it' the 8'dmi7istratl4eftrionoel of 16,000 '&deral employees in Dallas and Fori'Wbeth: yrti the' e4sin('t<f'h'naflolial s3dierge'ncy thecerittr tvoutd sfrv!'aa the coordinating and directing polrt for tbs activities of some 235,000 civilian employees of the fgderei ovcrnmenl:'!t'will ~dds~ 200 persons ois.a'i{a j~•to-day bans, or 500 on a 30-dgy, r~ler~enCy "bdttotse~-6'~" j MIS, The control center employs O,full-time people with an annual ppvroll ~ v bf,00,000. 1 't4'finsportatlon r. Denton is located only 19 miles northeast of the Dallas-Fort Worth Regional Airport. This new facility began operations in January, 1974. It Is the largest rirporl In theUnitcd Sietii;'secohd largeafi~n''ttir `wds~d end represents an Investment in excess of $700,000,000,' x . n:!".~, genWn~.latto,toc+l point,inItlw now fntrromp. iighway5ysteon (U.S. 35-JE amt V.S• 35,W) U,S,)>,B a connects Denton with Dallas, and U.S. 33-W ties to Fort Worth. ~r I'M Mash and, wey Wligo,gf,tb9 41r5 :irltcnt4ta 3btarm:part af,a V,41.%~rrark5 thal.bWoliit the Canadian border on the north and traverses the entire United States, to IMA at 04, Mexical! bor. of, q t-thq south..North from Denton the highway connects with Oklahoma City and thence through the Midwest, i I'J7+,'i J., ~u IV -l~L i.t R r",to 11 lfl n<,ti i U5 1Ey; rV ya,f,uf 7~.a) lr f, ; 'J. r;, (th:;:; 1;.~ ~,F,Rsd transportation, isjo;A} W bY,Ihtev reprpE¢j -+,,:&sint~.:Fk xo~s?s aN.P*46o, .end;N14sourit KansasrTexas,, 4;buiv iosportstign by Ccntlneatal 7railti♦,stye;; , pyptoy,frtight bY,lwfjye lt!.ck bnpof !-P,. i), !,,.I f.. ~1f4 N.l t1 ,d1~N,,~lyl,t is lYf ll ,b fi+x ~~;+~fJ TI {7 ~a•1J['IS; (f: J>.,'~, Education; r. h T' . •„f , Denton is the home of North Texas State University, founded in 1890, end Texas Woman's University, founded in 1901. The two colleges have a combined tnrollmxnt of approximately 25,7$5 students, and more thief ?;0ca 1A4Ulty,memherb,'i,",{r,;'a ,~~!!.~1 long 1. Y1:1. ti i.,,,~`!'if1 I~llt t'~)',-1 . r.A•'? '+il~ ii .',1t•A; Nt1 trifle is it. f.`I .'CJ ♦ '1 ('1t.J>4+C:i P. fIJl:tf.)t 7t~(i f~l,. f iti'j fin ..i''A'l~!,,Si u1>; f. More thar. 16,000 (Spring, 1978) students pro wrollod.in eo-educational North TOO$ State 01versity, Thli university has a target enrollment than Southern Methodist University at Dallas, Texas; Christian University In Fort Worth, or [lice Institute at Houston, Texas Woman's University hurt an enrollment of 8,739. i .B• 11 i.; MAIM North Texas State University campus comprise a land area of more than 350 acres and sixty-nine buildings valued in e'" of 562,000,000.=Tho Unl►r gty ombracts seven pademic units of codes" sad schools, and offers Bache).or's degrees in 66 fields and Mester's degrees in 113 .areas, Doctoral programs are '1,, 11 Ll in 0 areas. Texas -Woman's University, a State-supported insthtutlon ofrhigher! iarnlRg,.bar=comploled,Aq extepplye,b4lidlnp, propaCj''~,Frgp AYq1:by, ,tbrcl 41~ ripe, ~rtycty . .1 Tbtw Oro s 14-Atory flIce and classroom portion of the ollege o uq@}ioq (opf ne~ !n 19 t f~ M1to(X dVrtpltgXy desfg4ed tp gy's~,g4Q students (completed in 1967), and a 24 sMrydormrtory 6eslg~:edt~lt0 Ilse 761 sludt a i (completed n l e all, 1969). Acadgmip„ compon;n4 are embo. ed In eight schools q! e" to ea(ch„prpgrp sire cogduFted In cheml fry,; biojpsy, phYt<ICs, q"utiitipn, tcxtika, one rnlcro,~digl6jyy an , ot5er, rclsted field' 6Vefr[14 VD. ' 7rl.•'I J(t(zensiJn.~~old .i eaM46: ,o'c,~„e. , r 11'1 :f. rII'i~ I entonctoral degrees. tf nt n ha rEn ou~st~r~ginq Py{bltp school Sys}egt, gep[o~itt py the puthern Assoc;ptign of Colleges an¢,$ecor ,1hpols,0; 6ocr`fd(tg0iorf p , i t}io, :~f the Fxgi S4uc4}ins t~gency, Apprgsirrtate1y~9s ~o p A+ ~J t, L the graduates ot~ Denton Igb 'School ge on io college. The' beotott, jchi'P~ sys(Orpr PP4f acpele~~t,fd programs In such courses as S.M.S.O. Meth and P.S.S.C. Physics. A tae' of the, vocational training courses >}gailabic:In public scbogls are;pgrip hype, ppme~ kigg, istributiyq education, indulirlsl education, nlec~aslieei,drRW,ing, W.44a! 4r ~ eipl.:~l '~14f„4114 f!!cH~l~' aIlteT~11pTO, ~H!?l~er~P,KcJeme!nt8ryysehpoj~,., r r, .,urr $ rqr tlme►}ll!t,scFigglfote~oep}rope) Number of ~unior high schools 2 children Number of senior high schools I Pupil to teacher ratio: Avergg Ftvdorlt4 Per Slasproo t 2ti ale enl4ry 24a Average number of high school J iiIST Schoof 20:1 graduates 213 1976 Enrollment I lilt A 1,lit t ,11 [,i 4i'j,iY r1, x,1 ;c1jAA~,490. f4enln~tpt~scg~~ zf~~; Construction began in 11038 on the, $11,000;000 Nfil6d` State school, with the first'phms of the construction being completed In July, 1960, at which time the first group of students was admittci . The =bxond'p}iatd~vlas dorhbloto+j tit 1963"It'is tine of Alneriea's Most modern Lind 'progreitirv oducitional Institutions, f{I1r--r>'t ;1r1-~ ir] 'i) 'iii .flair gLii ~:r~ ,l,ir IF:. In. •}(t ,ii:r:'❑r>'., h7bltStAle-itsoported edoestidnal InstitutfoA Tdemenfally rebthv 6d Tents tetidenu it located t+6'a 2W 1 f6f't1y10lS1i10~1'~itbtddt, '•~~?s7. t,~x 1~~.! :,,~~i _ ,~I~ >,n1~rhsl'~rnri+l ~r~1 ; i~b; 1 n,'it,,~,;? kofe'-sitcod 1gilIIA .1.lf 1)"~ I1 J.rf 1'li tl;l. '~j hrlh ti~~f~ {i t!' rr /~ft!ll it MI~{l~ rJrl li : i'ld;~ il.,.il~ f~1a'r 7r Present facllitiex include 47 (including outreach dorms) dormitories which accommodate more !han filg3 sti,ddnts, S 6uFJirfgs'for physitdlly'hoAdicvpped-bhildrtb'tvkli ks,Apacity of 600,'and r'3!•btlld'acute ho3piiai'wlth suf+pot leg ficilitidt duch as X,;rsy,1ib6rit6ty ddltal,,ahd pharmaautkrlAn addilioA to thedd buildings, there is n modan odministratlon building, an academic building, a large laundry, a malatenanee shop and a warehouse, rart~a •t,L a vrixl',n,rJ 'rra~lr,'~trrI 'I llnI, n,rtl,l~ 1 i.rr: i,rricL`.i 'tctt;l,eI.I)I rft:1L, The School has it staff of 1,761, wi:h an annual payro!l' excess of Sl3,73.R,948. 4TIl,~lgg l~' : Il,;II t)rIG ,2lfl ll)IIJr r .1 ,LS /t)}L (111 Rr/)!1 r.~ll ~4 3r4'Iftli lli1'I. ! d'lrll"J Thera are five banks In the City , . , First Denton County National Bank, established 1892,v. vFirst Slate Bank, t:slabllshcd 1912 , University State, Bank, established 1963 Western National Bank, esublishtd1961(lit CitiztnSNational 'Batik,, embllshed,1976:51,:eI-~ilI '');')Ir'.11,',,r-Ie IklJl7ry 8.; r'II .i. riLr.i 1C Y7io'l;'ltl l ileifJ ill 171y!Il.lr i'vP~' J1171llili,.,lrii rr,q ;lt I'. r'.1 rJill')I;L4 '!Ili Jq}JIl~~IIl I}Y (fir: fl 'c; rl i'1'Ni(r i r'r~f 41 ?r,r31 I'i r~r'dbt1 JI, 7lilfrPrO its !iV?.1117 ~.1 r 0.12 Combined bank depositx 110 0 1966 " $53,344,267 1972 $114,161,439 1967 58,321,61$ 1973' r 126,209,608 1968 70,413 0 191~4,,,, ,1)1,015,000 'lit; 72,$4; 19 140,747,770 1970 93 541P49 1976 ~ 167,803,982 1971 r 98,0Sd,36~ 190 175,006,073 f f Two sao'ingslin[4loan assbcls'tlom had: ioMbirad year end deposit; as fol. . n' i r , i f}, i a~ 1966 s $23,3)7,991; 1472 , $33,692,053 1967 26,6S4,Q3'~ 1971,~.~s~ 63,3$4,046 1968 29,092,992 r 1974 ' e , 66,202,425 I ~ 1969 32,371,0,40f 1975; ,64,310,598 1970 38,2617559 i 1976;k, 84,238,471 f; 94,168,257 i47! r r 40,441,640' 197 70 i,, f lr• ' r . ' ri .s• r_;r 'f Wearby Garcallittic Elm Reservoir, one of North Texas' largest lakes, is one of Texas' most popular recreation treas. The Barra Reservoir has a shore line of 183 H:es located entirely in Denton Crrunty. I In 1973, Garza Rwrvoir attracted over 3,OW,000 visitors to its shores. The upper reaches of Garza- Little Elm are only about 3 miles cast of the Denton City I imtu, while the dam is IS miles from downtown Denton. i f Grapevine Reservoir, another large body of water created Ey the U.S. Army Corps of Engineers, is located in Denton and Tarrant Counties. Ine dam is 23 miles from Denton, Parks and recreational areas abound on the shores orboth Garza and Grapevine reservoirs.1he Ch'y of Denton has r 422•scre parksite on the Garza Reservoir, and this area is being fully developed at Uae py t: ient d me. i Boating, fishing, hunting, swimming and all water sports are the favorite recreational p7sstimee at beW. reservoirs, which, bowsase of this area's favorable climate, are In use the year round. j r t ,8.13 5 f Own i I 'k GROWTH INDICES Year Permits Me1S 1 hittfrl ~frecn Yele hosesRccelph 1961 S 6,333,000 81900 414;' 9133 11,394 $ 411,118 1962 8,426,072 0,100. t, t 91300 12,$80 ` : 430,427 15'63 11,054,969 9,'4 , 9,t 9,954 13,659 $43,088 1964 9,333,287 9,630 9;245 10,047 14,389 $94,691 1965 14,340,064 9,980 9,493 10,073 1$,600 622,357 1966 IIIP81207 l0,1 Q3 ,,q.5,41 j,0,576 171100. Of 3.618 1967 19. 59,623 lxf,) 1 9,750 '-1'6t7$0 18,403 $64,618 1 X68 15,910,010 10,602 99950 10,814 19,863 963,348 1969 ' 15,104,677 10,741 11914'r ' 100909 71,324 11056,676 1470 18,103,423 10,709. 'a V11,047 ,!2,530 1,102,16? 1971 27,446,705 10,860, + IOM2 11,325 13,898 1,133,764 } 1972 23,550,863 10,959'' 11.'03'~` ' 111837 28,419 1,390,570 1973 24,037,860 11,1141 110'251" - 12,227 30,288 21111,577 1974 12,498,531 11,41611`592,' 1,673 32,303 1,646,295 1973 18,3060334 11,755 11,733 13,061 33,094 1,70 ,1J..4 1976 12,142,331 11,745 10,077 14,111 32,252 1E,, 1917 22,244,075 14,416 12,232 14,835 36,07 1,46,313 114 s 'tt'A . I, 11 v,'i i ::i rat', li 3:{1J.'h' .✓~l # .fir 1 T ;.I 'd ! S r is i, , ;;.';i , 141; P:, ! ~ ♦ V f ''~Ji la r,l 'i Yf"~ 1'.1~.t "1 J~~,', `r, ' r~ ) Y(fl Ar r1r a~i,, ~.,t'}t~,, .1 ,li i, IFS! ,i 1!•14 APPENDIX C LAW OMCCS M o CALL, PARKHU RST & HORTON 1400 MEACANTILC DANK BUILOINO Molly M. MCCALL ►AuL 9. MORTON DALLAS,TCXAS 75201 J411M 0, MCCALL )1091.1941) ROEERT T. L1W11 MICkANd ►ARKRURST 1100 -Mll PETER M. TART AALA Co0L 14 718.9501 CLAR9NOE It, GROOVE 11101.19171 ROT M. ►O1M1iTT R ICMARO C, PORTER CMAki.96 KOED10M 11 ~~1 il )111; e~l i B 1: d~ ~I I I J 3 in R ALVA r JTMS PAGE LEFT BLANK INTENTIONALLY) i s , 1 a i I I APPENDIX D I FORM OF LEGAL OPINION OF MESSRS. DEWEVj BALLANTINE, BUSHBY; PALMER & WOOD j (To be supplied) I r f11.':J!!v T✓; A,Ifi1S;t 1011 jriI!i+ I • UI k ~ 71 -7 -7~7777 7" :r"l?"',`. F if;~ ,e. id td, ..s E.' ~t~ :"~'•iia''44? IP,~t ~ Itl'f~i~}~ (THIS PAGE LEFT BLANK INTL, NTIONAUNI 1 tF Imo'lip, ~~r i APPENDIX E CONFORMED COPY POWER SALES CON'T'RACT BET WBEN TEXAS MUNICIPAL POWER A.GEN•C.Y,' ` 7 T",y 1 4 (1 i t. AND / CITY OF BRYAN$ TEXAS CITY OF DENTON,i.TEXAS + CITY OF GARLAND.4. TEXAS r C'I`Y OF GREENVILLEJEXAS . : I a ~~sR l'A1(10'i 1 !kt1 V) DAtcd, Scpteinbcr 1, 1976 I k 79 it!ar !~:i: TABLE OF CONTENTS Section 1: Term of Contract... ! Section 2: Wriltlons. . . Section 3: Sale and Purchase of Power and Energy . , , , . , , , , , , . 3 Section 4: Performanco of Certain Services. 4 Section 3: Delivery of Pgwef„and "';r s .1 . i, 11 ' ' R Section 6: Annual System Budget S Section 7: Rates and Charges. , ........ew..1. 4- t,') .j.. } :-'4 . b Section 8. Meter Readings and Payment of Bills . . . . . . . . . . . . . . . . 7 Section 9: Meth Tedt(pk 9p4,Bilft 441*tJh4pl. 1 e" r4 41 .i:.j.',d .i. j « e' j' 41"', ("t . 7 Section 10: Payments to Constitute Operating Exponses of City System . . . 7 Section II. City Rain Covenant........... I,A . . . 7 Section 12: Covenants of the Agency. . . . 7 Section 13: Project Approvat ittdf Rlwts Mid 51 I I ' I ( ) , e I 1 ' ) when a Project Is not Approved 8 Section 14: Debt Service ddarAte`e';l ppefati1j.. arfd ` V, j A( ( ) T1 j ) Maintenance Expenses... . to Section IS: Remedies In ?v,O(p[ [hfaplts ~ j A. I 11 Sectlon 16: Recreation of Agency. 12 Serdon 17: Payment Ii4rpdttI tlstid ikdn Jen'e ! 1. it a:~ i C i.13;) 12 Section 1S: Power S31es Contracts...... 13 Section 19r Continuation of Services,. 13 Section 20: City Not to Sell its Electric System... 13 Section 21: Assignment of Rights of a City, 13 Section 21: Dissolution of the Agency..... 13 Section 23: Force Majeuro. . , . 13 Seci'un 24: Insurance . 14 Section 25: Reports . 14 .Sectlon 261 Records and Accounts...... . 14 Section 27: Access. ' . . 14 Section 28: Governmental Rates, Regulations and Lana............ 14 1 Section 24: Easements......... , , 1S ;ration 30: Cencelletkm of Prior Contract. . 1S Section 31: Nodces. 1S .sedan 32: Sevcrabiiity...... , . IS Section 33: Contracts to be Separate. IS Exhibit A ~,,;)no~il,> farf,~.1... IWIM POWER SAL", CO*I'IRA("1 t r AND CiTY OF BRYAN, TEXAS O 1 DEIgpN; TEXAS CITY OF GARLAND, TEXAS CITY OF GREENVILLE, TEXAS This Contrept, o}ad4„4nd,4!ltecpd,.Intas 91 the,laE,day of,.Sfptfmberr, ,1976, by,,,Rpd Aetwcsn the Texas Municipal Power Agency, a municipal corporation and political subdivision of the State 61;Texaii' and the City of Bryan, the City of Denton, the City of Garlahd, and the City of Greenville, Texas-each of which' cities ie a tbunicipal corporation ofithd State'offTekas and a'home Me city (herelri collecaivtly called)"Cities"''or lhdividually celled ``City"). ':j ' 411:-j , d 1 , 1, ~(9 f 'i r,, r +I Pr7 1f it i r, l'f ;,I ! I i„ 'i'1 r c 1t+trN~4'ti$~tl: r ,tWORREAS', eac pity # rued for qn ecgporhical, F#llabie soprce, o(r 'ow r arjd iera '(d meek rr 1 rl+ i f, fr r I, f~, 'i t~±e' growiQgr deman s of fa cusiom~4rs qd, his determined to purchase such l~owlr if j, #erSy ~rogl the Agency; and ,~rl INI-104AS, .t#ac,Ateticy; pxaposcs, P c4:nstruct o r1Aulfe el do ggrwatinf plonts 11:14 transmission 11nev% to, K44cA_0WPv4hlp,litmitts dhersltt,,,arA to purchase,or.:othersvlsa obtala Power and $Aft* for fife purpoae,of,supplying Po tror and 1311ergy to each.City and others; and, (,l!% ..,ill !s WHEREAS, each iCit desires to purchase, and the Agenq desires to sell Power andlEnemy on ,Ir ~ 1~ r r' I rrrr, rr,r? U r ~r l' b! t i t the tt ~ l ind t6Hd1t16A1 fitiOn'det foi'tl1;1 ~R6R8Ft?ltat 1D ;cOAsidf[atigtt ;Pf thR jMutu~l} vndattakings. ?iurtin containedj': the Agency .rr 804 ilcli ity.4gret:aafoUQW$:r,a irr t,q ,i,i;t, !,!1'1 r, i. t'll,,Il e ;r{ tr i jr,".,,!; ' k1IJ 7CJfr}7 11f fi>• 'rfu:'•R NecNQn tt Term of Cont his Contract shall becom effective upon the deliyi; ~ to the r r r, l, A icy '6( tlie'oi bs Qf ihF l~ti it' ei' ~f "Bands ($u eel !o. r~ the ro41&hj , ot /6, apns $ Rid S , 11. r t + a 1 • e r: I r t I, is 11i '(1 W r I, iredf, th,s`t"d'triki sh Ii si t e6C f0 &:jWddd'3t t~rc)ITivt (93j ~ytf trdnf daub erso!!'bt''4jiitll''':i(,c time a(s' 10 l'e" 13eb~ ~f t`~e, Isha11 W ,1 bt n a,d' ~dtis rb O~bkrd; sycI., It ~ i pA~ihl a ' Hsif 1ia~ bfjt {tiadd} hic Z4t s I E . 7'.. fr1 4 ii?!!IS'~'LiIU '1~1 311 ,'1{lrl 1!'9J pry?~iii'IY. f1 'lhl fill lr flNri /5~.1(:r 17 f' J'I'h r~ I. +'>[~1:'{I.t ~,{Sf. .~1.~a~tl I r r t 1 + rllfl (I ~il 17 .!1"~t f1, ii'~1 7~1~ +'~il:r1 fill. {I,I) irr ,?7 ~7'r Lr7'I ' ' ~ecd¢ri 21'tl~(~~n~iY~n~:.4s d~ed~hereln! .I 'l l'l { r{r ( (f 11N 1 J I'Ir! ry "r. ~'.ili:l '•;Ln r1 ' 1111 ~r,i,ll ,I .Ll t J~'1 I I iJii:..'1 (ll~r ~"?~9~~m#~ ~'H#ptfi,~4G, ~st#,q[. thG b3rd,~.:4glslAtvro,,Regular tiesslal►, x973, y u~er►cied or suYpplemet'1fJ~,4>~1;~4t~,fi' Rbgi~{~1;.~,e8fi~a HT,S,, ,r SBN~4s.5fsflo~' 197sr;latid,ah laWa.,at~CRdEt4ty.thef.4Q~ bX al t CIlcio. ujr, l ',ri t"r! Ir rl, 14e l 1,,.i r l r1"?i1':~./. (b) "Agency" shall mean the Texas Municipal POW0 Agerky as Etdated and eWablisbed (pdtsuant to,the AcOiby,:Foncturrfrtuord3,nan els,Ip.qoQt4d.bXt 4 ~R!efPi!! ibf'¢if~,.4f 4 CdS,4~~of,{O s}yFfyssor, ,,IJ+,Ic),Iti'Agnu41 Sylytem Goeta`l'ihial stkat(j with YtspzsCf(to't! Conu~t~Y>Edt'j'dnd'ftl'ihd"eiilent'` paid or to be paid from the proceeds U Bonds or other funds legally' available to the"A$'04 Hall "Ns pmjFl mm"HQ~ItoR,t~'gr~py14;~J~ip;p; Ma:pitym~n~ sll(Kablis Ti-,9 C 71 F, the System, all costs, charges, and dx~Eri i oti elepiacefn'entia 10Yknewals of the System and all taxes, assessments or other governmental charges 1t<wiuiiy;irpposed on Agency or on the revenues of the 4stem or payments in lieu thereof, nd the e , it or pc ment of an and all amounts which the Agency may now and hereafter becom6 6611 9s1td to, =t in)o 7rij fad of ~zl'y from revenues of the System, by laws contract, or any Bond Resolution, (I (d) "Annual System Budget" shall 'mcarf,► ith rtlpect W4 Contract Year, the budget of ;he Agency prepared in accordance with, SeStion,.¢s4ercd4 fq~,sut:~,nlract Year or, In the case of an amended Annual System Budget, for the remaindder of such on Tact car, (e) "Approved Project" shall mean a Project which has been approved pursuant to Section 13 of this Contract. The term doef 'n6t t kidde I p oJecta 4likh' rrfay be approved after the Agency is recreated pursuant to Section 16 of this contract. if,' Dodd Resolutloh' (f y '"gortlis" shall Mean atI bonds fsstied by the Agetley 61tlrsUaitt't0 (g) rBond Resolution'.' shall mean the'resolution Authorizing the Issuance of the ?'Texas Municipal ?*wee Agency Revenue Bondi, Series 197,5," and any, resolutiod subsequently adopttd by the Agency which authorizes the Issuance of Borids; including refunding Bonds,' on'a parity with tho said Series 1976 Bonds. Subject to the provisions of paragraphs (e) and (f) of Section 14, in either of the events that (1) a City disapproves a Project <purFuapI tp Section 13 hereof) and elects Option One or (11) the Agency is recreated pursuant to ~ect~on teehereof and entities other than all of the Cities ,f ar~an, De ton, darlapad and Grtegvilfe contract with the Agency to provide mgneys f9 'I the aY' cnt or a` y obhSigaq of the Agenc~; pbl!~atroHp, iheteatita, Issued shall 061 ae one parity withl be SeNs 14 6 9and~, and such obiigbuons, ,t any, shall not be deemeW to have bb nissutcl,puquan; to the Bond Resolution, i ~(h) "Cdnlract',Ytae'r•%hill rnean'the`fistat yearof IWAgency Uff(oft time 16 tlttie deleintlecd by the Ageftcy; provtded,,hhwever tht first Codtfsct Ycirof tht Agcricy'shall begin on this aectivt date of this Contract and shall end od the last 'day of the fislal year"oil the Ageracy'* ithin which this Contract' becomes effective. ,Ire '(+'7',1 r I.,!~. >'V l=t<~ {t ~ r.l ii . x'1;!11 ; :'J1~! tllr '4'l;rl r,1 r"L 1 S,; E li`:t: aft i) "Debts" shall mean Bonds and Subordinatal lndebtWnes},,as daed lry &4 Bend KewlulJr togcther with Interest thes.on, and redemption premiums, if any, S'IhtSt>3mico" or,"Debt 5e»9crt' Relgttiremeht'r">shall thea'y,wlth'respect Woli1~ period, the net aggregate of the amounts required to be paid during said period on aNy `Nbts -outstanding so the Barrie (hall become due. t t IY[,it Y'• f '~cYJQpme~7t rq t I 4a y Ircoo ~5trla owing: (i) «p replcem ntt, i f`F f i{rl -61 7,1ry1 7 U fill T (.J 1 la l 1 ~r I~r4~ 1 i ear F ~.+rap) ad ~Y 1,he, , i $~+FYr d. wI orv~rr fieat~'MI t4 AFIf, in Sent f1,1141"c, t~"g faerlj Y. ° ~le~ 1n; w Q1c 1 ,9t it ` p , J J1$}tt{a~~ desQnF~'!~jto ( to eF~ltt heel rllinafY (1'~Yr ~ 91C La1 nl, JL ~ f3.1 II'. ( [ ~1 t a e l0 ftF egaello hron wank d elcrer an woe i P1rPy ,u4in,! ,efr{ le evef ment ar uti tzation e1 , and financial studies In connection with the ann n ~ d resouP;es, or (lil) any purpose for which proceeds of Bonds TIty, bc}c~ rp p)led,,t~,q~A(;.~ ; ►¢~~,¢it~spt a Project. The Agency may Issue Bonds (in a separate series or combined wit Bonds erng asued for Wher rposbs(o pedvide fdhda'for'a D`eYtlo~Woj Pro ect'uf1oA''c~rhpl3arlcZ'ivith'tlie' Sr 46ni f6f the fa'sUktiNe?btt l 66h si'YGt `tdhN'in;,f6ij Btfhd' aelbltlti8 , bhlt''tlta' a &lal"b[ tha' Cti~1 ~ n) (d Section 13 hereof, shall not be required. rll,r tr.; ri ~::r jrl . ,1 I'll ~i lr. i '7Qt L1~{ f7A„11 r i (1)tt'8adrgy't,shallrptaa lilowslt-hogfs (kwh) (rn) ' "~1et~'E{ne`!g~ tv'Ur"Lita'i~"''th`a1)'{Nii~Afi~ ri`l~'11j~at'deih6~gy' geE`lation"iiu's' 17 .~ier'recelvec~t it,41n,,4}tiSr ,,4►it►ua:, n4t6Y; dellvaro I0oPt1iM At lbe poiats ioCMlivefy daft tbo-pedod•tioder f scoff Aqn,. tt h) >j lr,li ir; 'ttli ,^~t -1,nu! v lflo ? ,f e)8 1- eh iVhl'! r!t rn t,l;,rt pet <,t 1 if"'i (6) VOfterating ind Mslriteriahce Flxpeni 1 olitill fnlrari'rll e~pthf I' mid ~A'ihi,6` Wa It 'an'd" hwfitmaidii'Of t 4,0yidem' utd,tits Atetibyi *h;* i& ~fbde'rlyl ~Wec~Vlnt~difer jar'cCi"tr'u'r' 1: 4 -77 ' '.t i a generally accepted Accounting principles. Such term' doe's not include depreciation or obsoleseme cM46 dr rtstr~ts' therefor, interest charges and charges for the payment of principal, of antortization, of 1E(66'd or othti lndebtedness of'ibe Agency. ' (Q) "Poln~s'Pf belt%en'" shall mead the pofnts ohit'he System, oft'dr 41able to the Agency, as st{ forlb 1 x'yibrlt'At as amended from thee I t Me bf & Agency and the My dokt"rntd, et which .,t Power Ac~vner~y" aft mide Available to`~ City pt(r3uant to tf<ls Coni'tacl,. (p) "Power" shall mean kilowatts (kw,).,. t e,, (q) "Project" shall mean one or more the following! (t) any power generating, facility (of interest the{Ain) to be constructed or acquit: i by the Agency as well as fuel therefor and any trans- mEssion facility r4dblreld tti'connkt, r jnteronaect such, gen'efiatirig facility with a Cft'y 'or'athers, or (11) any addition br ImproVement tfi a poW'ct generating facility which It then owned,, in'wholi or In part, by the Agency, or /III) any contract right to purchase or rceei4 a, power":;tlj~ply'tirVrAnsrnlssian capacity (a) by! the matting of a prepayment of capital costs which are asloc1eSe9 with t" supply or ' capacity so purchased, or (bJ the. executjon Qf a take or pay contract having a 44t on 0, more, than 10 years, including any,renewals thereofrrz't (e) the exe4.n of a contra ct to purchase PoKe(eithsr,pr,both) cop art all teFoes not IncIvde fns #acj(1ly knamced with the rthre y300 I~F.so~utfgn. pr+occcds7 of`Specia) ,Contrnc# Obligatior}s as, pcrm!tted, µndFr, and de incd ,in (r) "Rated Capacity" shall mean the maximsm toad expressed In net kilowatts (kw) that a generating source (as Edeutitied in the geRpition of Pru)cct) Is capable of supplying under food operating I ~ (s)~ystgrti', shall -meanthe Agcocy's interest In ,a#1 propert~tp (oWne,dl or coeralf4 by or, ,o4 behalf of the Agency) which are Gnpnced, in„wholt'gr It} p!.att, thtpugh the Issltpnce of obligations by ,:C.Agcncy for,pproyfo Projcgls, Syptem,ggvelopmcgt e!'d,;#~tl!khlhfY gf?eR4i,1!'res(`eio?a}4n:4 RxojEcl ,lPf(4,SP,!kf;tl4tF;Rn9, Pf,i414PiAC41 iA4Ppt,Qp~~ Pk,-~'r,°I4 trknSlFl~ (hf, (p's lanP?4~ !'a9 :4ffnF and , gPtlP9,:4A9 .4~dCX, W?ragrr h~ (fl) "Pt (or, prpVJ0jhS, 44gices„or, ed*pr and 1~nergY, flthec or both, ,T44 tgtttal S)qe f} hereaY dCp~ 'ltnl rhS $ysteitl4 ),1,,r;Th4 ternl,,d~a, *,110Fl.~t.,thC_ABf9cy°a,,jA#fF, t. in„ei#y fac)I#ty, An raCed..yvith : 'f proceeds of (l) Special Contract Obligations issued by the fllss4cy, perµritle<# ufrcjrar'ogl dfn4~ In the Bond Resolution or (ii) bonds Issued to finance any Project which Is not approved by all of, t)rb 'Cities if a c1ii Nor Cities Which' diseppdoJl+>t` Ptojlet eiecC "Opirolt tan! utidtr $ectioh 13. •.JI I; i, '4 :'t) ~ ,7 1 ~ ''1 1 0; , ~ f ~ ~ y Y t i''i~I 1.., I r , ~ . •r„ ! f ! 1t) ' $ysieeveloptttjt ,a flipbdity ox a~#{ es,. rls t ejtpe~tdrt rrs ~vllirc4 t l ! ~ 1 •1. , pet. t 7 y.,1 r 1 a !I! 1 t J( I f Agency pct rmintj, I pn~e. piWent'utrlity practtccs, s)touf1y~ r!~ 6e expen ed o f g}ven pe od o 16i (1) transmission and related facilities to Increase the reliability of the delivery of Power and Energy by plies the Agency or (ii) the exploration for, development of, wAb*Ao01sI tar ofla fvtfslbply*U ?Q,~C~r~r)o,.P,SOK~t~ f~ej,ifof, 6CttAfabl'is,f~~#i},ie} +yfyich,:P,f9 pP4,th4P,tFN.~,34f,~Sht~.prQg~ss o< gapstrucui~n,,f„s;' n~ bah?lf P1:the:Agt~vyr,or (iil),repeifs,:rapla;;menis,arrrna sauoaa.to~~A fi%i{tigg gelne(p(Ip8 fagiJity, (9 n ~ Itt,ltyho#f..or; inn p.af~,by jjrl Aggr*y,Qr µn¢cr,tSQStslruslioRrby^K) W'.hlflirRFq~~S1IBhSd,;to,ninc~.OapQ,,.tho, ~aiff~,Ca1!pcitYt,Rf f.4!cll,g~gfe~8,(AEiiyly, ~hrsXpORr;ituta which are ts+ be psfd frpm the p(ACtiRd>'„pt,9lscle~.of1~011dlf >ih~ll;,M..xc4'g5#Sr~lP,s<1~gfEPrpjeu is ods and, termtnolpfy contained "L'-:.or ri Sy 'tem of Accgtfnts" end 11 o;hcr acTunfin meth .'f 'i, :I i , I ! r ~ f ft }}'>d 1 .I,tj l,tll J'!, 3< < U:N /kii Tjn ~ teftrred tb' in' tf Sectrfin or cise+vtierf hit is coafract mean 'ar<codntrn pr1 i~ csRl4' "thQds and terminology followed and construed, as nearly as practicable, in conforrtlft}f rIA the'Urli~o~ni System of:A,coounRS for,CeiassA and Class S Publlo'.UGiitles 6ndUttnsees add accouniin'g'rules, add regulations thereunder prescribed by the Federal Power Commission for prlvately owned power compitylos Which are, subject to its jurisdiction anJ engaged In business compareSlpp to_the busint s of the Agency, as milt cd fr6H (IM6 to iirf k,"dt itich'brh'fl''tylslem ,as`ihff~ be`Ye44ir'dd W ifJ r~ r(Alsly'ig ncy. .ir.1.r ! 1 ! , ,71 c. b t,'.'~t?fill 1,, °)1!'1 '!111 1,4) }„[fir, t+1 Hr r i 1 (Ii Jr k3ectlovk 3; $ale on # Purchase of Power, bad Energy,,, n 'o r > I r ; l - , r, • 17 t t ,t l! rn r,r +?i (a) Each City during the lime this Sectio.. is applicabld AIllr t"" ~ ' !r . r sr) ,t, t (I ) Purchase and recluse frApM OthF Agency„ all rqp er astd En frgy vhEcjx it„>jh#li,requIre for l the operation of its electrld svatro In excess of the amount (f) supplied 4 any generation end ' Fry >r n trtussmisslon facilities owned by it on the effective date pf ;chit, Contract, including general)PS Poo, ttaltsmisslon facilities, finder constrtrctlon on spch date, and JIMPrOWMAts or eztgntl4~? seriq facilities which increase the Rated Capacity of same sp_{w► 4 the ioaretlse 40048 mnY. valAd, , t~(g,3pcC~siXe 9ft :Xe,~f3 do4s not,px a 1~`y4 gt,che aalnde,RatI I Gap~clty at tti4 bw rsning Of, lu , per{gd, oyi4pd the Opts a~~, t ie Agency IN wflt~nlw lye Such. 10 l~aIt~ end (il) supplied from any genera~gri frifiuly pfu~arijy fulik lror ;yid t, eopistt e'tl i r .o 1~dn~ of which is lnddentaE to the disposal o[ solid wsste that is lierevfter constructs end o' 6y on t or more of the Cities, together with any transmission fahilitltts"th 4`4 necessbly'for' thb Unnsailssll of Polf4et ahd Energy tberefroml and . ! (2) ,$ivd, itso)t to ply )'or, tell Pgwgr arid, Energy patchocd, for odvrwl# ecyuirO by it Nin the :Agency pursuant,(o tbi} Sect€op 3, said payment to be. ~nadQ, at the ra:ea t[pd charges esta~lrs11a1, put{lltAnt tq S"L Ipr,,fof ~hjs C, lrgch, , , I „ 'h'b'fgtee,j glpibili loft ofth(s,Sub3ehtloii'!'(A)"sliAll'haJd'no applkitlon (41 thb ~4tahase"or e chtI,ge o!f Poker or ~ nerg}~ (1) dn'nd emOigent j~, 'ktalnte'nance, br stani basis be (ii) on the sid of ecorleb,ic dlspsl; h bciwb'ed the Cstl'bs and Brazos' I1ee& Power cc,6~ tetlve, Is-~, T~41) ,-0 C'itegytih elf bAhd rep 11 f~n i ng gtc€et)neitaeamhong th iifotti l g~ana'ot "iI ert,*ebli,r 'be at+y'Combination thereof,'t:nd the Agency. r ,1, ; 111 f111GYr'lrl i6l!. i)~~.,I t'r'Iftrlr Pp )•)"'~E ~~i t(('. .i,.,"'~~i'1 ~lftli"~, ,.r'~i'i1 In IC'J' ~J.~ (b) In t e event th, the Ajr C 11 not able to supply {]t t en the" Power and 'Encr y required or, rp quested rider its powfr sales contracts, it sbal! allocate Its available Power and Energy monthly iolong `the (1) Cities 'ro tats, in btcoraatlce' viih 'their 'rds'pt` .-(ve diet Energy for i'..mad rduring the cbrtespgndinj tltorith'ot the rfct~difi~ C'oritrdtt Year uhlesafd''~avltrlrrsental a.g 4nty t--,Id lred,e'diftcrtnt I otYtibh' idd''(►i)'.iuher pbyver )iisrChalEFc fti mays bd ¢tdv9ddd' ffy contru~. 'I he A' nc~ ~ha1C'dEvrite Halti'eltiotts'tb'kNeicgwiltioh- by'¢ii'rcliaSe'dr'bth'dh4lit" the' poiver'~ta Ehtffi tWAd to inM I~'I biretfie(Sfr:'Y lts'pdivehiles'b ndalctd: nui?ng[ ihbfperldd th~i"Ageticy'Rr 46616ft'oQpplq 00*0 t1d Imeity i1c4dalred t,06' AW"uh&r lh"okr'asllea t*YActts, so that iin AII&Ibh' of P&O ablil r ls'tnad ;;ihd'dtii?s shkil`be'ptrmittWrtdntfng dUchl tirlbdyt'tb pdrettW bnit,"6 R afNouAfs of f► g t l ) i f r e! and EdeFgy'e)'1Fb'Hbt kuiplled bthe'AEe(cyr. r ' 1 'ii ir!f'+Er /i ti.r it l~fl'l N }'!'llr i /1f1 ! I 11l f T 1 it :r r 4 ifE ( I 1 .r i fi rS~ ~ f 'JI ( ri[ F. l f ha prggisigog Qf Rhin Sayop ¢o,nV4 apply t4 gnY,C►fy irtxrs acid ~tfler the tRca)ve,d#tt Crty. P-T sap roves Projpct ugtr the provision of Sr lion 1,3 Sri (11 ~ elms Optio One n r shall the II 'r ) I' '1 ir1l1 sl a( ~ ICI ' : ,~r rir~ l ~ rJJ r ~ / 6o 1t~ n p lf C ~flll'T!710 f, iYJ f• rl, Pr! ! ir.N JI of 7.i r t,rli ..r 5'tTttft liti r, J.1, '~{t St!~4YItl~i b,i:, Y:1t~1f[ irl IJ ell~ti i'{ ' Ili {l'. j4 i%t 0l[1 'i1 d'J r( ±'rl,"1, ~'r!,) ~)ti['Sr 11(l r, /d!I 1. rrkl„11 S t. ?gK,pR "Oft 4.CK*.rAi Ala.?u JIll tut 1 ~ (i!f i,~: i7 e'(t)An'ddditW'tb (bhkllvt?il pill aitd EMfg heretiit'de ind the"pertb'rnsarice'bf' f`acti~ Arid aclibtsit'itlCidetlt lhetltb; the'''Atlnc~''~gteef< t!tar~'tr,~thb ~itteM4' s{bt tic dkd' 'rstlehr'to'tS o a, j bttnAlUnrb'df1'itiy'blih'!r Wil thls Cbdttact;'it!'*nJ dthl ktfilltini bi!'calrlse' Cb''tf@"perftitthltl, in,410re}ddntrtitQ eNdnctrlticer?tts'a4~ner; tht'folldwltig de~viceY' cdllClrttir►g th6''1rit2~Teli~ted~'ictlvitieli bt'0►)`~A8~k9,'tr c C~tle~i'rusd'bthet4, iii rV~[ "as +~dtltfui' cAlntiirltfEOiia 'Gf'a6ch'p~1ti61:`"-1 nl ,~It TI"~,a~/ ~ J~ [ (I' rl l t V l Ir7411 1(;11 ! if r(i.lilfr(,, Ill), ( (,ITI f Itf iUl r' 1[I(1 in l r 1 ogmpre nsvo P~anniti~ or )tower and netgy pQ¢ t o (»risntl~}t~+rf ►er tp Atli l}Ur tr) ~Q.~,~' nlC u; 1,77 uat; , ..m., 11 d, t I~ I! r,, r f r 71 (.4rr^'I,~ Ulf r tF! / o~flitilft ) 6 'I IrE ! r;lrl t el',, _lr fill l~ rl~ rit :[u r'f (7) !undetttke or rcootdinate and! shbnitor uhe' ecist$n;i ebnui`trrtion And ropera'tW iofr YAM I'1i.7 t "i1 '~/I [r7lirf, Yir1 4?i.!t; l'.Sill {~>h[fa l"Tel I~i1f1'I f~~.tYil) 'J ['s ir. Jlt!{ ':'it ib l~; jjj>") 7~r'r i`1. 1, (1+ 0 / "ru(.ill 'fill ' S [rl{~Ir, fl1!ir !,E! v1 I I I ll IT, Ie'r 711 ~'p4'61't a14.'~ g,4r,A~xilir~!er tld~inpp~l~4rrt~ Qgongpplc fl~lAll!cl►1Qit~,~9y1ti€ add 6trjy he S)lstesfi and t e systems of the Cit es and other entitles (to the extent permitted by cottttila) to whkh such . 4stems are Intetconttitdted,%purs'OAnt to✓Isub"whIsgrdetttefit(s) be- twetn the Cities, the Artney and airy utherentilyi l) [r (4)''P1 %4dltict'ouhtlt , ind'etrii'!~€&lllof~l s'ek4foifa;i a6 {Jllrt [ t t'Iif, iloall~i'lli7 fills '(~i t)'.'°t7[;2 I) Ir'!Yif,7 1rs r~7'~1.'1 "1'I ti+Ae/! irl,r '3 i'r !'l~%l•b'17"I'~ 4.;t. 77 1 1, (9)'such`other serviets'at the Ageney`alid a City, from time td Ilene, shall cktermine to I bb'ir }iJu riate 5nd tte..4ssar) (b) City hereby binds itself to pay for the cost of the services that are to be proioided by the A$c'ri 17,.trftlant to Subsection (a)'of ttiis'Seclioh d, Sikh payment to be ma4d al the rates Ad charges 1 eisCarbhshtd riuriuantito 5&666 T-31 thl5 CoMriel.' Section S: Delivery of Power and lgaergy. (a),The. .Power,an, _VA;rgylto be furnished tMder,tNs.(t ipntmct, shaUj, t alterniiting ggrrent, sixty .(00) 11oz; three-phasq,,sµbjoct,to,corutitions of det(vt, and measurement as 4,4e}narterprovided. (b) The Points of Delivery, delivery voltage and Wer conditions of service shall be in Accordanx with the service specifications sl:t forth in Exhibit A attached to this Contract. as amended by the Agency and the concerned City from time to time. , ,,;i., , ,;;.a i~ (c) The Cityshall'niake sad phy for all Connections between itt facilidet .md the System owned by or available to the Agency st he Points of Delivery. The city shall Install, own and Maintain apy necessa•y substation equipment at the Points of Delivery from the System of or avaitable to the Agency and shall install, own and maintain switching and protective equipinentof adequate design ahd sufficient capacit beyond such Points, of Delivery to enable the Cityl to take and use the Power and Energy s5ippli tUdaf'iAyi t''nWii t4(thdi,'t*wisrfI'is"tu Systi4ii TA''ino ~~eNt"tha't'tht Points ~f Delivery set forth in tkhibit 'A' af! rt&'66' the City s e`lcdric s'ys'tem, the Cit} shati alydnj i'fcVtrahsrrsisston of P er and Fner old under this Contact to ils system, in Eliding thj' tnttallatir~ri an)I m~fir~tenance of :'r y',in p' its s ste 81'r C, 4l 6s'j~e'uireiot'i~ >lifrc of such Pow r4ndtiic t :7pp !iryl~q~l~. !I'1l~1!i J,11:u it , ~i IS7c i~ 1 I1 's. li,~,.7'~1 4d)i~cit~st+ as olerWi.;e , a rid, metering et)4Epptenr~ shall be turriiinsiltc and Q~ jainb Ir, I I 7bl !(At'r tt (l " r E l, i li 'I lr ~ b tie d' tncy of each' pi wgr~ t t~tt Cjsty e he ~4 V66, a sj of ie tran#~nti Ing f4trip nfa '2 ~ ~I 1 1' 1}:. . b Ad 1 f )rl 7 y 1 1 7 1 1 t rl 1 1 11. ! Eoc~(e ~n rF ogs fustrri1t ji foli low 61 ~~ye 'slde or {,e~ oft meibrrn s~al~ a as ;pecffted ~n sa f!~ ♦ t IF ! f 1 J, !ti I 1 s1 t' r ~ 7 CI_ I• t A 4 as o erw l4e~f,rgf3y' the s ! ibi pa 1 7t,,; .~.17,R1 .l,Ifpl~t u..•r,_k..II Ij,..J '.f i J,~.Sit", 7., '!'41 ~I t3y ~,1 ,''l illsl~ii!) .i, _ ,i',5f1{ '.Lt r~'~i.i ,;?f Ir7kY ✓',Y'i _ t:{ .'1 I:g~~,~6t'~A1deWU Syst~iM'Btid~t''. Sri , IIIt'. (+I .7 I '1t1,~ .if~}}:f 't tl i, ~t.~! -.1. 'iI fi!III i~SI.Z 11 ell lYI la 1 ,v to17 sly ~ eilu;S to bq.PSepr4~ an Anny91 $ysttry► BudgeErat ~yair nirtp{y ~.'1 ori. I z i~~ ~'fl7 CI~~Cfi lyf Pe~. ~TI~r stPfi,PR SR. tht;,ikfg kPi~~ 9.~.I94c~!.i~4RtraC4f,XSafIwh+GhL,;h~11,1E tq fwc (pf A,"M faf!!?4i 9st~ " t FS"1 io.I revopye's,,itl,. e o,(,4t . h S1. tl s tRib'? a.PP N to,ism ~{►q}► iI,SYstern ,Go541 91 s mild appticabEa to sue C~ontryc4,XS~ c►a'.,Av,4 i~`ist'f!, BArr~>i9t{)~l}t11,,pE o,! j A, 1 t s~ ►tst~ account forecasts, which shall 1e furnished by each Ctily to the Agency ateast one hundred! twogty t(120) ciay6l~;Oor ~R,tlae.beginltingof xol; t Conttact,Yesr,►it.ORW..ithty.peak Pawor,and FAergy tKqulrtlnflttsi;4st17tQtcdt,Uy b4,oblattk~11:(r003,the~AgenoY~dvrlAg 6QCb.;~~tlrastyQAr1lI ,l '111f rl li 1'+t 19') 1 I1i17 , i n,'r~ (16 tr, ' +It,}7~i) lr1 17f'tl 74 tlll`If sue Ift'r iF r.Ilt'N ( t'It 1 A; ';'I y t. if Sb~~ ~l or f4'Si? rPEiPp PPY ~S'~Ei~mfnlF y(i,e ~4tisy', tWn t Fj` m Budget th~~xy,(c ~ days tCBCt pI!!'~ a 46>eif r'vt car. shaado Ianflnua Sl rn el ryr k`C q1 pr ior to he ginning o P Y g 5`i Year and the rates and charges for Pivver and Energy to be furnished and the servi,41 to bo prmed Q$!( 'B,rtt1c 1^n9,t]1Ca frial?4;AbAlf SFit}s,Bt'F~9F Al F,li, r~1}i!4sfiJ.IeSY:4tellir~ dgei diAl ;arid charges to be delivered to the Cities, Prcf lded: however, the Annual System Buggyf (pr (r firs~A4A*tsYear shall be prepared, considered, adopted and delivered In the manner which the Agency` deems best. 5!iI ~ ~I "I I,J Kit ! ( IY ! J n i II 117; wt t I,tJ } 'I'tl . any tie qr to tinig~sicr t{~e g4,optioq o~„ Shyfipua) $y} et In If A~ ! Yr ~sq!S4;ti)~►,S►I1, ~tfi~ 1 x~thls,fctipft:~jat~e A4el'FYl,4sitt?Pto,; ihpl~tU!!'4~ii'!; a Plies k_ for yyl~lc~ ~psh nt4Vraf 511 (9, A4i.1 P the flit t a i AIrr ,•iy p~rt,irle cR a b avenues Qr 9 . , 4 1v t fit 5 r 3 n th UI SIC Oita 9 f K hues i e 7 ~?wi,i X1.5 41 ~f If „ ~fln , ft VIM 1 i i, F f f~ , pftih , 4, J Mp flil I Ystem u1~~{~~~1 Yr; enl>?4"f~:4',r Oar, f~ l~^' f, E!cly I, F,~l I. A4f4tCY:1~g~Def4' ~OIr filY~t,4"'ttQg such ohlrtict Mar or any ))art thereof 14 greater of loan than the amou bl power an~Energy w~skh the Agency estimated at ag time oI adoption of the Annual,System Btogti, wt?uld have,bt:en delivered during such Contract Year, then the Agency may prepare an amended Mn,g4l $y~ter#ti Budgej,, The amended Annual System Budget shall be timely adopted by the Agency end transmitted to 'the Cities. (d) In the evert a budget for the ensuing Contract, Year has not been adopted on or before Ilic first day of the Contract Year, the total amount budgeted for„the preceel1q Coprrayt car sb911, be the total amoor,t of the temporary budget for ouch purposes for the lnsuing Contract Year, The temporary budget shall be effective only unlit such t 'me as a permanent budget has been finally adopted and approved. The chief administrative officer of &e Agency shall be risponsible for the allocation' for expenditure of 'the total 'amours of the :cmpctary budget 'until a permanent budget' Ti r idopted and Opptoved: Section 71 !fates and Charges: (a) The rates and char] es bf the Agency to tt.e Cities for Power and Energy and for services supplied shall be: (I) non-discr`,migatory. and pop, (2),Jkl; agd ieasonf;+Ie, and be ba d u th t t, rovidin „h er NO,F.ner to providing tbyc, service w,ikh tespgct, to which, }he; raga, or, Fba rV. is based, end f ; ti ' (3) adequate (a Rer takin$ into wgs1ldera6q{ other moneys; 4ecay~d of an iicipa. d to I0, s) to receivad) In each Contract Year to pay or inalte provI io >~or paying Annul em Ctosls. lf~ 6!'~ tl r1' St yr't f {,:',ir:" c a Fr ! CIO r> 01 r t tr'! h~ }ten `he r dt bfrectors ro eb } tal;TIs a nEw r8t o c~tr{sgf, as'c4r~rmitte u der ~ r y! 1 i:'ri t 1 ti7 li+ , Irl ii ! II 1 E 1 e 1 E p C c i c>, t it of see to esta is}i t ~{p ar E ark fot; Sbd~a~ l'~,tri a etcft tidy x~rr'!I frste t1a !:7 it r a, ys t is r -4.1F I!.y rl 1t..a f 'Ifil~ 1 e a i I xltafl fit he'l older erS~ energy or or services (setting tUrlb sut eharge on a car#elt (Ali than 120 days from the mailing of the notice to each City, `al suet{ nofI er; fo 16-Mai~e sintultaneobsfyS. Except as provided in paragraph (c) hereof, no charge or adjustment in any rate or charge made by the Agency shall be effective if any City, by resolution or orAipwge,,gt, isc, goy;rftJr,&t ~lyt ,meters an objection to such adjustment In a rate and charge by causing to be filed with the chit( aelmloistrative ohirer of the'Agency'~a'rby'of'suEh~re6ldtidn"cif ordidtin2e ino~e' 4h'an 3f}8ys ~Sribf (a tliel stlesl3 ett&Oe 'date-bf I the &60W''new"rate` orr't6ar`ge''Th" the been[ a `City f'r~tef(' ft bbjektlort to' t yl llio>+gt'dr`'idjtf~~ltif"tn a Yite'oft hhiogd,'t}ie' eftlct'iv8"date df"tfte'ditge o}{ACjdstment' half * 0. r ,irr! ~i2fs1 tpbh'ed'fiendlht';'the tcso~bdi 'tI•.. :61 thil disputt iri thi ollowing manic!.` { 1.1, _ f 'Af'.1 1rW1 ;r. _ ,1!' !.l ah) ~ ~rl l~~t'rdiu' ,.1 I .i. ~.a E, nr. , l ty (I) The 'Ot Willilay' jointly aelkir an'r lndependent;'ronsuhf d''oe 6n'sulfahis' (ol 'prlpate' a rate evaluation' anri,'txhedule of proposed rlitet `md cbatges ' provided If Mich joi, t'telettim is r I cling of an objection (ev~de e, Ibr the I ssa$e of a { e4f mado within calendar el ys,of tt~e { f r .o t s resO~yUiFh o in I4W!'tide end6nt cnnspjiari~'stia h6 11ofndb t B 6ajdot~l~ti ctot„ I r d ! l fll al~ ! gel Ir 'I. II Iii J t , . a 1 V (t:' { r , l I bt' the" IdBeHdejtt''cbds b1tirifI $halli be 'Jb6ti tt'ed fd'tNE"AgenL~ `acid ~`de~t' "(2)"the' itport City The &,tslderalion; aftd i,:; {i ^i i.{ t flap irl; J>4 l~, c_lr :11"i 4f+i1 E{il Ir 1 / .LI ' rf fl (3) It i e report 4f She lndeponder>t consultant Is upprovO by the overnlq,, ieg qt the '"AgAid''ini'M'' [Iles,{tht same sha]i b. cfieeiivt"as yf t o dell ~rl ~ndlly utgcsled the )A~ett y l ou~lr YT She dd)t mitts t dV`a baled or' a{i iii r ritent tegfTt' m#ii t' (S day} 1 after the rFcIlpt of yht 'report bI'a~6c {nd h ent''tbnl~il'teni th n !iyi~ `&I t hnd'tt.e ir' r s~all`i•ac' h ve all of the IIghtd,t~medie's at'law' an in' u~ty exce` t th°f in rtieht'thail nti, g9 "T li 1tie r!1 v d'bf it!''i~PIigatlost'to tht hoi'ders'o~ lidnds wn el Seckn` 13 "or 1 ` `oY ildi font ec , ;a!I P{; III Jh 'jL7'1!~.1 !r,t.~t11 ;f¢f!' d{ lltl} r. !r' '..r ~.1! i r'L1; 1> :1 -OW; ra ar`y~~ ' r e' 1 i' (o) The Iitxtrd U Directors of the.'Agency' may change tlr adjust any rate or charge for Power and Energy or for services supplied by it to a City, if such Board dttermlees, thA! (1) &A tirtirgency exists and A.A);tht emergency adjustment n1<cts the cxlteria established Its paragraph ,(a) of this Sectioa, The cmergeacy adjustment shall be effective for a' period rrf:.160,days- (unless the notice from the Agency specifies a lesser period) and shall be effective 30 dxyR after the mailing of i 1, notice to, the' C'ities' (all 'of which notice's sh'slf bi mailed s1rhultancotfsly). t ' ' " Section g: Meter Readings and Payment of Bills. The Agency shall read nteters or cpus4 Metots to be read and bill the City for Power and Energy furnished under tics ContrALt at monthly fnt'.rvals. It shall also bill etch City'modthly for services rendered pursuant to SMIon 4 of this Contract' Sectlo'' 9 1►Kele1'Iing'pu~ Blllia Adfustme f,.'Tf~ Ageccy rhdt teal and c~llbratp ;nglejs gr r , 1 of eatiselrpeler; fp be,tested end stltl~,rtfd)r)cq~tpyrtsar) wi't ace rt; star}clardl' t inRe`n+ldlsl ei4e 22' f~' * ; O f months, or such othFr mtelvals as thQ, partleA' ast, e,! socy.Oill it W' make'or Cause to be made special meter tests at any time at s Cityks'reyuest. Tific costs of ale tests shall ~e bonne"by £he Agency, provided, however, that if any special meter test made at a Oty's request shall disclose that the meters are recording accurately, the requesting City shall reimburse, the Agency for the cost of such test. Meters registered not morn- thaft•'A of I abdwior belt* northal shall be deemed to be's' Karate. The {eadings pp Any, meter yvhich ,stall have been, diwctQsed by test to be, Inaccurate, spa?l be cor- rected rqm the beOnning 9t the rhpnin y billing p~►1kx immedlniefy preceding the,' 1.ilhng pe,igd during y high t+ie ik~ is are, madam ac rdancs, with thel pelcent-►ge of i,naccujasv, found_.bX such pest, provided, (hot no eorrectiRit 1;t 1 be ltl ~4: fol,s i~nR r iseftt~d Pules; the: Ag ,,Fy and i~t ir♦vglvpq mutualfy.7$ri. thcrelo ,Sltpltld any rn,etcr Oil, (Q i:g:stce the Z ower an4 Energy delivered siring such p f..P(~ilure.hali fob bjhl$•>t3urpo)ec gstlptalby theenfY and tbu r tty. fryps,tf4Q,r?pst I )1 or R4)4, tl8n 8tsa lal~le,J pe A e~ Yahal)~knopfyllt D ity~lt+r,er,u~)r }}le,Ctty ~o be sgl3ficd 'r)m!`a~IS4 'ttt3y hel,prFsept ArrFrq~h,!e~ef I e time of any meter rcadtn o tEvst~'il5`A ih9 (lily ar &AVO, reading Of test, ,5,, !i'.t Itr 7, I!: ,'I 1 -r1il~,ri1 "1 rl.!'lI~ Jl 1, n. '1 9f. T'.d.'. r, il'.1 y.f ]r.F"5i .iy~1i•{'Ji 1 1 i t: f {y Sd oa d 'pa)nitnt' to VUtlst11ke )Pr o~lk kir,ows of In 5yslchs >aach it'd ;~blt~f~tiQn t0 o h r ' r 1, i 1 ' 'I. f, 1 n~akc c ayntcnt>< t#udcr' thn txantt 't fia {constitute an' i>pi t to expens 'ot i ! itloctrtc sy fel~1 ..1 i' it I ) ,d t Il, «j, / f " ( 1 r '1 ! t i r a utilct'soc~~ ram the r 'ven3e§ ~ tech pi~s o ! gfi e)ectrtc tysfetti. EacT+'ltty sh ll fit nd'an P Y f e I t Ji rr r rt) 6. 1 ,ir t tlud 4 u~"this meinRSnd obligated ld ~nA}e stich'pu rtteu~', ~iid thi bbLgali n to make iholyh~' c 't!1 J f I .'f' ~ ' tl• iir Ct!.a 1! t , ,r It ( !1 tt `li ! 'k'.t c'phlri+ct ahal~ bbbr~ciotidtiibs dt ~ .,i,, 1'_ Section Ut 'City Rs14 Crovenantr Each Oy Oiall establish, maintainFand 1leFt )'ales tltd charges i`u r I fC ' 5 I ,Sf tf~i t tfie, s4rt•iet'of its elect Jlc sytlghi ~vhictt afitsI produce tcvenues at fe6st SUFAcie t, tq~ethfr i i„ iri r 1 •~rr u' 1 1 f fly J 1a" i 7 1 111 rJ I , 1- ,1 I ! t ,le 1,' 1 ,tli o, tevenucs gYUi,?<le to`uctt eicctrk ~ystem d available e~gclrte systctt /ese~)+es, to tsZab!)t (o pay t'o tfte`Apenc~bcR due;lall'amqunis,~lsya~le b1y± such I'Viindp'r;tfii4 Cgsitracf, ccfloi% IIS,Cbvensfals of the'Agfrxypn't it,r," t;r'J l,1ir it 1 !~J . t ('a)`'AftWfilst`'satisfyiHg the'PoWtr`a'riittErieY r0#14tnielifs oi• the 6tle3, gis EUl h'requir~Mtfili and 'tstabliahed'r~ohi ItlMd to 1ifi'r; ah'd the rci ul?e W of'bthbr `powe'r pdtchdtcid; the: A96cp th'ali ii♦s~d i{t!l' 6cti'cff6ditr tti` ttigrltct'A'nd'tdisp&k' bf~l3tif alld'all SUiQ1tYs P6wcr itid' herfty' 4ahble' 1'i'fit ti1G'rlyti;:ntr'e,7 whleh 'Ihr~'~Agtn'cy''is'obli sled by"dohtra4618 pbechase'`ar' ctheivviSC,`'ah~ultd,•' aEitl which is In excess of the requirements of all Cities and 'i6tljcl l'awcr ~iatcfilsjrb, `ta¢oA''()tif'tbdit emuomicolir iadvantags~oy tfrnu,and, eooditlon obtainable, totth"- extent that it ria)olepllyl do F~. (b), Th; Agency.sboll,ttlt► reasonablt dtligonila to provides cohstia and vttintenupttxi'aupply of Vowerand Energtr,hereunder. If the supply of Pown and Eve(V shall fail, or be fnterrupted, tor become defecllvq by rmon of, (qxe tnajeufe as bereinafter,prgvIO-od, the Agency 4011 not be liable'tberefor or for dAmagat Giulia! thereby, ! ,i ;f n'r•f l ,f,t i t ; F ; ,i r t,,, ii' ii .r I v'" u' ! i 1 A ~Il 7- "Tr -TIT II (e) The Agency shall dillgantly enforce and take all rmonable strpe, actions and proceedings new "ary Ow the catkotnent of all 'terms,` covenants and previsions of any power sales` contracts/ The Age(ky shall hot ahiend this CxctrwY vrithobt first having stewed the pi~or written consent of all Cities; but no amendm knt shall be made Its Section 14 or Section 16 of 1hia.Gontract. r • ' , (d) The Agency covenants and agrees that, it will operate, me, twin pn4 reanage,its $ystetn'o cause the same to be operated, maintained and managed In an eMclent and ecort<,mlcal manner, con- sistent with sound utility practice turd In accordance with standards normally used by utilities owning like p 'ropordcsfr , (e) Ile Agency covenants that it will not make a change inrany Soad ResolQtion so• ss tQ create t,dditional Funds (except those now established by Article V of the resolution authorizing the itasuxnce of the .l e'eries 1976. Bonds) wit out the a rqval of §uch chant es by th4 governing body , c', . , , ' . i 1 a.t S pF , t ed 1 in the are"alrn~i re~ir~i~d to'' pai~'~ito ac` i;thvYat epyh U I, ttity, foe 0 any, chaagv .bo. WO e iris b('nieintaiiteA In't'h W' d Vu J,1 Nnd `b? th<;'C~SnlFdgen y F*atld, >tbepl ee'p ovid!$` ul';the' tesollilion au.&11zing the SEr~fs 197E $et ds, without sw i approval. Sectlos 131 Prtrject 'Apprrovol and Rights of Citiea whom a Project is not Apyroredt , ta)~ ><cc~.'as ~ +an LI~n1te 1~~thbet` bde; (perOyII C ' Optovu¢ ii' 'A` Pru~eci) prior kb ~e Issu0ce shib 3aje of 'Bonds lu provide shoncy tot etch Projtti f, he, `Agency $hl( 'suE+mlt ' a wti ten rtoGee to each Ctrl :as t° uicfd by rite provixlt is 61'pm~agraph Eby 'of'tht Section It a' ~r jia hii Merit' d'ppriive~i'"' rtok { Itb' p4rspaph '(c ' of this 5ec'tfort, 'tho Aaencli may tjte¢eattdr 3 privlde (}Ms for Well 1P(ujcct, fss>Ic;'sci! add'`deltdir'tsatid n"or~t l.? f~ili a 'fnclW the' esl ~ Ii 1 nstt c►lo►t; srid tho' ~1aC1Ng b('-sx'[lie ln`edin Oro #1 o rior4;'t>r to mat'' a'}srequlrtifil t'of.III tludit f't E nt d"rot ,3y'}}tfli'~E'a e y 1~A ifs ' Vr1'!yji` n 'til tfrpd~Iiatents{ e~a ualty~lotybi ~ " 2~dr+Fke~ F,y in~+ahuicZ; orb 1di~~i sl'sxt~t'y a': t3vk~ri~ip~ PSibtiC'~ieCiksitj~, , lal : (b) vtiitic a notice of the Agcney's Intention to provide funds (through the issuance of Bonds) Mgr ~4rgjrn bha~l see~a t $e Slt~l P;' lY9 the tt t~ S f~ 1 an ut<ca °t for 11 tlj yt of the .cons qon a d (e+.{1s of a":)rb ect and sfactnent totbo c#I~E t 1 ;a oi. /F 1 1'~)J,iiA r , I*ii open)"' Pf A~epey' tine PrQ~cct s pecfss~r+ fot,the enc, lq In t its co,Inlimy 47 ` piion lire 't r+K 'P9t[xctl and ~toh~~ca r ieq l )J-41, t4+ etbej~~ w 1 s R~t = lxn r: c uls ia~Ftril 'tliihlt~ ~i>b de`Y s ;a['er r ecoi Pt' a such ' not 41 ~c5c t I ~t" t §.Y,,; jJ 7F Afr1~a y1 written nntke of its approval'or disapproval of the Project. It a City fails'io gv `{be Agency such wdttcn notice within s.tch 60-da;r period, th;n said City shall be deemed to have approved the Project. t Ia , ••t 1NGS1)f(, i' Ix~i a 1 1 I R"'111'7, f ,c) if a of t~,e,r! ea (w I~Savo ~p~rq~,c a1 pSwtouS~~! ~A~ 4mvirpit`s) '~pproye, ~tQj4'~,4 ihe~ tftr~ cat ma;~ r old ►vt the Iss'suanee cafe end S{e i( Tiofldq lq rovide such Prgiec If i, .r!: r, . r. rl,., pl a rl a r , t r J a ur,e bs` moil btt►ct Cdi~ti sou di. i~grpve ttl hen tAgr cp alail give ar~t'sp€~i'tiy , ,A~oo yy f 11 1sr'oJoe~t and wyleh"p tfte Iitlrs ii Pr, r14 e I written nutiix vrhiclit'v( u6e "fpprov~ectthe Project Any of the Cities who appoved the Project may then the Agency written notice of i1i or their desire III the deegn end construction of the Projcdtl e'i, ~trricnct~; and, lf: the es.g<xtcy de- tF(!> t954~Mt:00 P4)~`'Os, Oil Itsgtblr. I~ !t)q prod iwitlt 4bv.44s'44r+rf, #c 1 51, pSii~99 ,e rl such oru s.,bbt,ttie„sty wh10! )ailgrjl4> ppprpvq'ttul~h, PAf jg,~~ sh~f ,a,~r, rf;,q rq tWAh(r!. Opi0Y;,41, being ' {+r.. c Ii Yt.tha~ h~wll~~ PK ,ems, wii11. tno„ ssuagctt~ "Ie ,;.Adl,,44IivFrYs c4 •tn<,>;uA Proeetl.~ h f•, +iRi4n it~,l~F fi oitjcs yrtcler Sh ',~=A(#In9cls'u,01! ()ptropl, rte„oS,~Pt~gn 7Wo. s,i.4t (only ~parasr Ltf? ! thsoj c, p {d)'i~fi'td "qty` cfiearNriiJee'a 61,rc "then ~Niitrln 6 1 time 'sp"t cd 1n''paiagiapjt (c)1, such city shallt byl v retui(utibn (w rvdinasco *dopted by W''gr)vdtittm) bodY,`e:lki which 6f Yhb foh",ing aptlonl %ball'gcverwItat tutus t'rspansibllitiis'undo thiiY'otitrut:,.lt the City' disipprI lf,Projet( ;n8tetrrtdcr foils 0141 C'arrtmudcata'to tint Agency ns to the electin» of 'an op6orr omdtr the'provlaidsra ' 4 this Section, it shall be conclusively presumed that Option Two has bdr+t +necled: * : a oar: rr ' 1:• t4 71 rt 'del hr } F d 777 a r t~ .F J" o (1) option One: (a) tr tl Pity shall be enlisted to, schedule and receive, each month for Its uW q acCOtrnt, the same proportion of the available Power and o nergy a Cst~e e f 11 if toir~tC baVr'pe m r. for load relates io the total Nei ncrgy for 1.a30 a , .4. °f , F, {~,!4 $ t lhC`opt{on. of the completed Contract Near next preceedtng the, effeerive dale of ' the (b) As considerarior for such hVwer, and l'nergy, and~hare of 1i;c Ann Jame, eac~s City, shall,, each ,mc-11th, pay to the Agcney its pr rtionate eam tar $y~lem Cosh quill to the peicentage of its Net Energy for 1 nad,ef, theetnergy Eroad of all Cities for ttse Contract,yeat next prccccdiny the cffcctlve dat<<u( the option,, (t) l?ech' City's obligation under Section 14 of this Contract shall be egtiial to the p2'rc;etllAge As caleuls(ted under the precclding sentence. J 14, 1 (2)()plion Two: (a) During the balance of the term of this Contract after the er# lye, 41' , of the option, the amount of power and Energy required by the City exer Is rsitall' ineacliocal- purchased under Section 3 of this Contract shall be limited. SUA endar month, take or pay for an amount of Power and Energy' equip to the' atm;u'nt ' t rp wer, ,p~n2 d, coEnn,ertc*yUpurchased, h~ bCity froln thq,Apncy,durjng the o,nrespondin8 o f t~e Month Qq rlod psfccd,ng the 'calendar tpoiith, qt tb'e effetllvp data tr~c montfi R pc„~ J ftum { h r amount oPower, and Enerpv as may 4 , of'' 14 ekCrCise or tie opunn, jr each ` t0c to time q-¢rf4Cd Upon,y the = 9 A$cncy an thf of er CitVs';iand th% Agency t,Ita41 .t~erBY jo e~crs~ rif su.,h an oust, a 1on~es, be ,~cfjNirec1 topraY4dS, ?tn1, Pq(ir~r in id the CSty shale be relieved of its e. elation to purchase a 1 of 'stp rftqutrements f ri tft, t,k; Agency. The Power and Energy futnishCcl to yuchuraiuattt (disraim 1 of ibis C6t1gract t !~.~,ter rate:? atsd "ohargt~s of trotn•flmb~ to'tlmC~ hdopted p Me .'cakulation1of,the, limiting Cl ty's'obllgatE6a'.1.(sck- r c+y.)h 14 s4'this. Contyact sMdl tio,:.H 0;lil%Wm6 ittich City't; Net Ritergy fOALklid fdr,thi- f,titf►dsas.rA, said ca'tutations-6 fgt!at:10 ~tbch City's Piet 'E ndrgy for [load in the completed r, ontreet `letir next pti&ding'the efflcd Ad r r ,I~ +,i l,uh ,r,datd of +,Ixt Option: r uN l ~:Iv ,JAM day'of (1W Cohiiadt 'fiear W. ~T5'~'1id''etf4fitiVb 1'ete''`~t t}td"optE'8n'sH'a1C' e' tf 'i. nrorr",,~t~thQaA, 90 days. after, tht:okte a,City, clisaj~provos a,Pr)ject, As pcrm{ttcdJnItWtag apA (e} flight t4 scQ ;jc, #ta' er „mod'+tp4 iip' is subj4 ~Lto .outaf;cs (or r 'amtcnancc' an(I, tea' Clt`1 pitlapsph,(d) (1) or (3) '1hS, 4n , l' i ~c Y,ujCet) (undf,i a o s c(rpq 1j (~whjct3, di4~#4pltt, P,it , ht., s d AnL; Prtyfy6l~',I~S(e pf`:alyc o~u,11f►her.nsty;T,o er >td, n~ bra X p CdSi) ice; all Fl14es pftec the dcii~Ypfy t9, r1 ' ii; .u 4 ~ ~ ~ ~ u It C'tf ~ f ~Ch1,t a,so ApPI ~ 1f0~: (F~i. 4r'mR~eRv~}I~b1e#or .F c_, , Y ) n o the 4 oC, O ti n poF by si,;Z ty, t , e, ~'p~~Yfi,~R44 e' rS~Se, f ,9(,41.ijc,City .WW,.exjetcifes,tan; opti0tl, puriuant;to, paragraph '(d) sl,sit; ttot'thereafter f1 h 10 J~: ri;'r t~ IJ 1 f' i 1 , .~rti,c,at)llFd,lo approve,,pr djsapproyi~ pviy lubscquent,prniccts., , nr'1 f,,~I 61es ~`,s hall ,tpkl' ~':n1 1tt14 i:{ it ~ir than the, ' ' r+ (~)'''p'rttul`irita dub rroni crillties'other 4riur,(k cal- i c0iiiing the amount due from the Cities, Jill siono it njay,khctcafj4f " t' , r d S~jcct u .l~r pafrnJp~ttp} nt t61> ref};t~fleR`a ~'tty Say, )~sa~pto.Yt A { t rd a,trat .the r'o~cl ~ Snti1#fdr { , F ~u , .re roka, f,~tfl, ac(igti; ar, I ~ .'F ~ 1 ~ ; ~ ~ ' ' (1) the Aged *y and each of hho OtIts approve the' revoi-vt it, ahd' s Irll EW 'NUM 7M 7`77 1 Y '1. ~ i 1 V 1 . j (2) in order to pay a pro rata part of expenses incurred (including Debt Sen,W6)'sioco the Project,was disapprovedt the 00 tiorces to r,ssume or pay such amount,as may b^ determined tij the Agency atu 't1,c titles. St.-doo, II nest Service Caarrnteet' 4kirsiing end Maintenance Expenses. (a) In any.instance where the amount of money on deposit In the Bond rand (created by the Bond Resolution) Is not the full amount then required to be on deposit therein, withI glving consideration to trpnsfer? made frorn %)thk^r than the Revenue Fund or frI Boiid proctI (piovlded that tramfers may be madq'from the Rvs4rve Fund to the Bond Fund for ndt more than two (2) conaocutivt ea.lendar months) ,etrch'C'tty "shall be' obligated to make' a payment the aggregate aretunt of! whIclt' shall be the wruwnts ti)rt are nectsiary, to estatbsh or reestAblish the amount then required, under the terms of the Bond Resolution, to be on daposil. in the, Borid,,Fund, ,the,RescrY4 Fund,,and the :'onungei;:y Fund. The percetttese share of the payment to be made by taut City shall initially be as follows City of lttyan, Texas:.... y tpA' 20.34% City of [lctiton '['trials. . 07'.66% City of Citr),~rid; j'exas: ' y41 City of fren~;I1e, Texas: , tssCt~t.' s'k}'(brtlt; it SAktion [i3(cl)!''suth peteentage'shire of iha payment t6 lie r{iadt by each City,Atill Ii6 a luslfd tit`the;be$inning b[ etch I6nk(acr'Wnr''SuI adjustment shal1.bq'Made by Sali;Okling th,- pcj,Centa1ettdatiQnship that each Ctit'ye'tdet E zierg'y' t'or [,-oa8 for the Contract Year imificdiatefy preculipg t t C~4tltract YI in "wh'sch the adju-.tment' Is being' male" h6 to the total jt to"a tt EneiJ~y f~,f lot's of e1I l^Itles fi>r such Cnnirtul'Year, rhd the'turt ~i+~ tote adjusted percY'ni.~se{ :flair 1r ' lf;4 .15.! ~H 1. } F ~ r: t ~ Ai Tf>,;plrtrlcnis'nrgAiI to tie, made to said Bqm Pond, A.eat ive Fund Of Conting.*y Fund (any one; o,t WI Io [ such J;ttn~l,.sh, ,bo pafd,bytthe r 1krs in.tbe ped:ehtage shares dttetrtlt Bbove 9110 surlt )rpytix tts shall ht "Jrar'A d1reci io,thq tttstodiatt of 140! yespectivb Funds scstablisfud in tht Bond Rtaolution. PII City upcundlf omtlly coVenanta the payment will be mode, if-requlred,i in .the 'amount and In tt,e nlaimer prt:scribcd. The pro%isions of this covenant are for the berteftt and {xotectu n of the Agency. the Cities and t'ic owners and` holdeis cf Bands, it being recognized that (lie holders of Such Winds shill be thlyd-patty beneficiaries of this covenant, and it is iii dlrg6od by the"crnt"rncfing'pittties g tfla~ t Yurellascriof'povdi ba# end v,ill1ttgrec to(bf purSh#%,, o(,,"Js gpdii?c,r)ed upgq :trip coveiumt. r r (b), In, tiny instaitoe; 0Xcepl thit2r aSiontd tty.ti',~ (attute of h City brother poWJ(pt+rchasct'to pay the amount it is required to pay for the purchase of powt r W Energy, In which the funits of the',Aft y ro Insyfflcknt to pan Opetstiq mid Yaintenanix expenses or ~th;r,ex sey fexrept thuap for which 6i;rar, 7 j r5 pen 1 kAr1vii%if' made in fih'fa'I hercbO pa ~Air+~is i;hall be paid (o i'he Agency,bY the C~tir-o ly,,the { perccniage shara determined II paragraph (a) of this Scction 14. ' ty1'eb► jffiWi r''purchai F' I~►ith''tht'~ i +'t1i'o'foildthe'Agenty and 'Ihe 660 trla'y assume, fiiimtikj! Ilai,{l;( '!GY th'e-'bt~l)gatidi`to'nit~ke'~ta} °enls`~uhifdrtthls Scrdon'~Jjfi t0'spec't to beb 61 the .01 A~;tic'y lned&d pri6t 16` I',e beeoifilitg`a Lxawer pu&ha-tr; but the tam» >;h'all nof'ditcharge Wii? ilAility° of those who t+cre obligated %rhen isucfi'DAts i4~eri~ tiSrU'rrlc~'(~4hoIshatl tetitain 'secoAdatlty'fliblr). s` (d)' irk ncc0tv",n-;;the AI is held 0 WOO ,.Ietatflt under the provtsOO of the Aiinii Resolution (by reason of ft inadequacy cd paytiterlts''let)lilt'td14 tchie'da,bylth$ CitiCi;'trhder'!h~ tIIi of this Contract), the 01;cs s11all F4're the dclault by, -tspkltfg pay►rtpgls In the saute propry0ort al provided fn``{faregra'pfi, of fftis 5ecl'son. (e) In the evvnt a City disapproves a Project LI ect~on 13, are if a City titells to th- dr' 4W fedihv), & Aj~k' 6ndil &c4lGn i ln; "tWl eaA of ''ah,4lf fliriiinu! t+i` fiF obt3g'm tira. rgraph (a) of Oils S~xtion with teipeo to Bonds Ih!'ltt414%,44 il'nd f~drt~04irtk ter (.tsueii. to fully' provide funds (°r each VrgjAr tk (as contWplolol by'iA0 r,econol sentence; Ali. .ScIAI 13(01 and In I'~ 12 ad'bitloh, it a City eletts opdoa ()nt,, then all of such titles shail.bt obligated undt!r'paragraph, (a) of thfs getiltitf with reiptcl to Bonds thtweafterissued for Development Projects dtkribed in clause (f) of thct'definitlon bf that' term If a City'O..4 is Up+,icn' Two,' then all of Su~ ! ides shalt atsc V obligated under parearaph (a) of this Section with tespect to Bohds,thcieaftar Issued for lhlvt}tyirnent Projects rnd for System Development and Reliability Expenditures 'and Bonds Issued fof Projects' thereafter approved. E For and in consld(uation of the payments to be made by the Cities under Ihls Contract (including !host under This Section) the Agency airtes to use its best efforts to deliver Power and Energy from Projects; to such Cities, under the terms of this Contracts and such payments by the C tees.shall be in consideration for the Agency's agieeroetr) to deliver such Power and Energy; but the failure of the ,jetxy'to Comply with such agreement s4a11 not relieve any City of its obligations tinder paragraph (a) or (d) of this Secdon, which obligations shall be unconditional and absolute. (f)''xn the Event itt Ageltcy'I's tecrGatedIunder'Sertie:Y'l6'so the new cn`trty asL;M7 i pritna' ligbil,ty fe'r,a pro-raltl share ut the bcbts of'thb~ Agenty'then outstanding (as, disitngtiisKod froth, the ec( cientloti61 a ties gys'et't (not 5>•.:lnced uiKler the Bone( Resolutibn)'wtth resr; to ptojxis Oierc3fteii ap,peovM then Ilse ht.w chtity shdl#'thertafter`'bc Includ:•d iii the chlculatlod r;f the pcrcefttagc,sha~e'U thZ payment to 1'se ni.tde nnuer'pirag~a~11''(ay 6f `ih13'Sectlon, for the purpose of detttniining'tuck` firtm;ty liability; but in riu evens shall th s'of E3'tydn, beht4n, Uteenviiie and (IdrfAnd be rEliEvtd of the obligation each nas'a,,st`lmed`(by'iWeiieMon hercot) eij'r:olltetivtly Oisy4d'tintiri arnounl (based upon the pereenlagoof el FmrgyJgr;!toad)'required lto.be,,paid, urde( ,part,gr'aph,(;) tttls Sxctlon.with respect to )ill Bonds tl.rrulof ite pr thereafter.isaucd Avithout regard to such new, ntiry, Section 13: Iternedfes in Evenf bt befaofi. E' (e) '(1) '}f eny City (eiis'dt! defriu}ts In hittth:g tild'ietms;'condiddtis'aM covenants of this ri+6tract [81hOr tliih' i defa' }h r(A`f dy'rne'ni tdY WhIeN j0vfs^ott' I3 rnsde IA fubs'eett~{ , (b) 6f ~tb}s Setrion) and Oclt lkaUlt16hiIitfit~' (+ir ~fr~d`tr1 Jt~s""iftIAgeticj*`tMil' gnu cloches (fin the' JiMi6kill tonJ tekhplijHd by Sel IoM 51'1 bf thlsttuMraEt)'tn'14l[~t#'f;itlts''M defdU tAllCiiy shalt trktkk 1+c dati16 lilt r r' halsle a behotl of :30 i$s id,oirc'tT+ "defaul[ { { I a rNhttirfg tSUE(r n5titr iIt1yy tll ( •ren 01cr.,5111fd A ~ffau)IU 31~• ra me~j .1!p Niel Agenq r t;.` { i.. f stn Orly fauns 1o FIV~,iG zany {~,YTe h r f j + k r (~h r4, M ~ dq 01. tlliti es or' tilrecr7 p`! o fsf do tun;et lht, t f>'44o, l e the vact, tic ` !!„t, rn ~t'a: Qaym ntf tin. „ ~P QA' te'm later r f I. ',f~o 11! ! C fl, ` rj- T!'+dtr#1r i ~`Lf~ ) ~q•I' T vllC Gy ¢4jtQn 3 o lhf~ or► ~ t IQ, Icq. h4 I r~ y[ n' sty shajjI'o I;K f 1'°,. a matftn>) rll l 1 fl Ir r,l r, , r , , t"1 , t. i(, {1 8 e:~! ri , ill 1 e.Ti I 3 e (t<!i aqun# ~`1gh d~ t}t tjri+e nR4rt~Y to$etht( s}lc i(t:ce, ~Sa aerl of 1) JOY t1 aril to 1 i ~t. ~~t 11L >'IW h i 1 1'1 Wilt , ,r rtl ! r 1i rteresi htreon, as iiet iclnftcr. otit ed. r, r:'{.h. + tr (;t) It 11w City does not cure is default within such period of twirl `(30) days, rhtn, so long as such City remains in default, and in O&Oon to an)r,4lt}{rt,dl$l+,is,)vj►icb,~1 AJ~SYhi?d,vund4't tjtE~IfrSrttract and ut law and In equity, the Agency may P:rtninaterall st-rvlc<o to such City. Additionally, In Ole Went"fTf liefe'ult'fd' iay4tieliY, th6'Athcy rn3yY`thafg4 Yo '41s'd WWI front' ilueh°'CW sac-h •i:eleft'da'e month tfie"Inl~ttht irhkh~tts~'Aftnty'defil tnet'ta' b`trdh'ai`diff6tA bs;evNeli what'tW Ab:ncy* U1d bola rc~`eCY~tii'frorrtaG'~h'CI'f~ ~ft'ddr'this'I~rrfttac4;'!dt~F'~4~.~'n•14d1wne~~ytaHd~~ri~}t+et'lu~n(sfye~~an~~7lJeFiEa ;`Alc'tfie 'Jti ch"c `pE lJyt tit'~I>rFr~}'L4ty,'Fiad'31t 'Cllj~'6nf'l rsti'ih"dll"rlbl±;'in'tl''tAd"Jli1",,,alS; If' Il 'h from sales of such Power and Energy and services to the other Cit1es,"sir"'b1lttFa, `eI{h`!t 'dr Ixflh Ttriniration of servia N eusider shall tot redate or'chattige,the obligation 4f tf+e defaulting, City under lh4dthCdi+tovisl~n~CY'.'IhfsCortratt: d J S~ , (1 '1!I r~`/'1r I 1 t13f, / r r ! r t, f: 4'~ lCi: ~'r t (l+y' H ltr~` Ageh_t~~.y_~''t,,Is' n+ dcidults'In ~letsti ~,+e ehrte, Fiihdlud j ' aYdd 16 -&O' i' fit[' 04 vi''J ''A t"rlridtAnl brid' u infiri`ti spt ,i 1cflilfa t' i4eilft' fts lWfnnh1' 10 03~~`ttca diiC~fifd`jt~fijtltee'' o4 priS Of tei<ty oof }'oiv%'ri tihd' Ct ldi' y 'e+ ttl'idl4ib&'itj''sdk't1bH f f(lr tt~A lt4cytt[e~at't!;'dhl,riue is r tt' !•h~o<y 14 ~ddys'"bfier ~Cffjr' h~s ~i+k)~'(hi?''11~c,d~y~ rtGl~i~b''c,~'~tcwt'tiird(il(~iA''tlio nianrlct' tb~►'tern~htfed I I Sccllort 31 of iN% Contrast, then such City slit:ll have all of the rights and rent'edlti!`~lrbvldcvd I w, Aro In equity, ~ &cep{ t4At,in no,tvt'n4`,rhali atty,ofAlO Citit:s he Xtilevtd of l(s ubUption apociiled In ti)Iprt r 14,, dt.jltjcry pt p fAilaolc Pvw,ar "10 tTW(gy as. prQvided,Ili this . conttaxt, shall bt t m isttrlal daty'of the Aber,cy, f?•j3 1 i wMi &NMn #da Rc.crnsttotn of Agesty: Each City and the Agency tccognile that pursuant to the Act the; concurrent ordinams:by which the Cities created the Agency mic ved. the fight to the,, Sgvccaing WY U oub. of the t3N `t^a )oin':with We other Cities. to provide tot the re-crertkwt, of the Aracy by :t>te aeAillon and Oklion, eitber or both, of a' public'enilty, as defined in said Act, so long ¢s there, Is n!o' Irttpairmtnt of obligation of any exlsGng obligations of the Agency, ^ 1) JI , , P.ach City covenants and agrees that it will not join with any of the other vntities to recr'dati'the, Agency so as to d'' 6 one or more entities unitss' (1) the then outsianding Debi% of the Agency have' been paid or. , ,ovlslon made for their' paymenr under Artide' XI 4 the Ilond Resolution or f2) the Holderx of at (cyst; 60% 'of the s principal amount of the Bonds ihtn outstanding approve the `tokutrent ordinance proposed for adoption by the Critics, or, (3)- the withdriMag entity' contracts dnd agrees to continue to pay a'fixed percentage (as determined, by the Board) of the Annual System Costs (including the Debt Senice Requirements 'oa de then outstanding, Dch1s,91 th ,fteAFy) during the Limo such Debts rtrnain,outstanding. Such Atfcgnla a shall 6o fixed by ealcgialf ra the, Qet;egtagt telaiipnship,gl' the w,thdraWing entity's Net, )~nerg) Or, Load, ~ urim ihq Contract 1`e«i lt1 rhich stitch Pfrc4Ptaga,)vaa {hg hl$hea;1 nears !a Ih4,iotpl ag;t~.ate NeS nrsrgy for,Lotid c+f ,a1!• fit'ses,(during,such,CQQttst,t:Yga(!. 7t~e.pruga4ion contained la l~cGPn ia, ps tQ: ihy enliiY, ki!?g to withor w, shall rchtain,unaftcctcd >nul the Bonds permitted to be, issued 6y: 4 ectioh,lq(e) have,beep pat3 agQ reltrC~i., Wo,wit1drawpl all bd effect{vq Unt, 41 such indcbtec{ness ,ha}, f?ecu pale); 844 at sucl! time thia,Contr¢Ftr as tQ.,~utth withdraw,nit enttty,,ahalI terminate, Froth` and after, notice' is given' to the, Age kV hf - the'.inttnl 61 `8r1 'entity to' Wilidrsw (rontAhe Asencyr tto additional Bodift bt the "ASendg'sh'all he Issued, for.b nei IPeolect whicti'Invuivet'any additional payments by or guarantee of the Debt R•ervfte ANgiremenls~by such vvjthdjawinf a±tiry, i tsgh.,City Cgtf Palits And ngrges that ;t, will sol,)cl,n,wN 0 any of the Ot4ef.,c061113 tlo ntireate the +'6tLiY i►?,fs.t4 add Qr)S ar,rg4t4.fnfitic};.titll4 ti, )..thattb4R IDulatagditt8•Ilfbla 4(4f 4" YAAry'ti, 1,r1 BQ44.4, pxv" ".MAOO (x4AAft p3}~acts~(,,tnilet",ktldq XI OVA D60 RWh4,1611 nP.u f) Ae {,~14gts,0l,alilePStr4g9kofllte~f'~?pk~ a1~ni4unR)~;tit',,)k¢,t~Pl..thf,~P,C1~Y.thfngyy;ttptdagt,Ypptgv!t, the concurrent ordinance pr°posed^. lrl sad?P lart,bi 1: 'deb Q(' p~jtyi MP9,11004 .fxvrisi4 either (as a prov by the enb( pod t tot' n the ci,ttcur ent r orAlnany t) , (1{) a-some$ t rimer ,I abtlity Dtffrts fhe Ai}e ( Mich sha! r't~e 'aA Ac rt tdr y sl s are oiftK b o♦ ° , ' dis't?i ~jv twe llibll~t tt ' 'obill a) ~ fl, ti, lh"''i lits't'ti e~'tdr A1t=;'itt~t+ Fh ,'irl tt;naint y<r~ttir.lu~y to ,Ccttol4 34C am tt'~~ as to tQbli httn to id tusu 'n e f tf f e'o6tt ti'Fd ot tltf vritb tt~~lt'a~!`of"le fey~adtr tit a ~lfitu~S ~yte)~i,~~t~,~~or act a~ex~~ ~r fe t~, 'tb''t?it'Jay&A'oft 'tin`hil s~stem ct~3ts for p !lec lv ub 1~)irbv~d af+tbr rile ~t Ereaaon' of i ~7fi r`i l.' .!,till, I', : -.i `;t ti i'i nil'l iJ' the, Agency. L., fr I" ,l , la li)I N I J . J l i i~iL, d !1 i l(,'. l.? 111 1, ,117 ,,°f Stcrtiriii' 17t PaSit►eat n~ Ditti'6►td C~ellatjtteFcf'. :fl+. fit Vftf~rn,t P 111 L I~,Y}. 11 1J1"-: tit 111;8 !'<trtl,~aS.,lP,fihffXfP4;~st,~~4tYll?~4. ~i?,fTl9t)4f 9~} PeX~"fll{~~~fh~,llmyherp!?,ilfid~4~Ftr illlt~f'~1~9A, ~Q£t~ ~'f41ASiac~,~ ~1°~!},~l~f,aS~fl~4,pt t)°R (P1f1Af.4~'n.p~'(~'fi3t, 1►er;,9npum;~rPm t)!e, 4rtite,such~ p~ P t, g l+EAt l 4;rln f}d1,,~ogdr~Ae,6pgcy..~~.4~►a !~~St ,f , ng~(w e. da¢at! y, Oq fIffim!? 41 t f PAIMW aS Oi; 4094 0% t nO f . ret est tliereonr, 444 00911 O be 4Qf4t wtenl itt, a tkrtrq PeteAi j4[Is cd40, i t Ili'' I• r ^ , i r/^~1 ,t ! ' ',ill, (b) Alt payf onwirdqulred to'be made by rho (Ados!utArt the terms of this Cotliratt %h&11W duo and payable wfdfio thirty (30) days following this date the Agency,rertders'the bill, said the Citks' ShNI Pay 9 Igbt of sefldson)rill 4r ;cqugjq(I fn,"Ark31 RpY P YM PI uadc,•h Sectyl, j,0(s) or !4, fir? P~.~ !?111i.~fist,em,~ #i► ~~licfi,' A.~t)tr1 ~glq§ d~1P RpYP)e4LI,io be rll~df 'ta ti'le' theraSs!'p,~'~r~d r4 ,~+~f~rl,tjntil}~Y,~,yq~ t'Y,~?X~RQ~ xtiRS4futio9_Rr ~:R~('~ki1!.f1,et'~t~paitf~, lo; 'T sXme'lt,¢~Q °s4!S iY:° tTvhcrdl~~~Se~1;4n4t~btcdrlcis, P' 4;~~1(~,~4t Rho? fi„ 'Ni t?)t 414". ~faiur~~P ~rl.;l', yi'I S,t s; r tit 'a:i)s.v++..I1 t.,.ll .'tti n +1't >>r 11hottW iv'iliSOAti'as,Wkde'n'^anyl City: attd,ifit'Agtnoi' Ari4e''6 Vol Wliethft lht' A~kc,4 4 V5 Id bbl PIltnc* Mth its covotimAtsclus contained 'hrtetrr, ^ Nkb, C;ty shalt nlvEtihttio i bey' 6h13ttdtid ,v;n,, f. `.,r1 lii rt:,t, fr' 9t• nllt H-14 RIM ! (I) to rnake'the, payments provided by paragrsph (a) of Section 14 hereof and (2) to pay such dmbdht !bf `th'e'' MOW - System Costs is may r'not be' In dispute pehd'inl' thb ilcWtitloh ' of "such ~ dispute, provldcd a CSty may elect to pay all such Annual Systedi Cddss, McIddlAi My dlspiitW afilboirif. tfi the A.V;nt,b,disputed ,RM94qt,O( Agiyuaf $WM Cg;ts 1$ Paid,0 a City,th4 Same hall, ~ p}sled In escrow in on interest bearing account by the Agency pending resolution of the dspute, bye ,o ply 144 principal amount thereof shall be returned to the City. If the City elects not to ply the amount in dispute ~ and the dispute is resolved agairmt such City, the amount ultimately found to be duq phis Interest at 10% Per arnum (calculated from tile, date the same was originally due) shp)) be paid by the City within 15 days ut the resolution of the controversy. Attotgeys' fees shall be assessed at court cua~. Section 18.' Power Sales Contracts.: The Agency, may provide Power and Energy and services puixuant'to s power sales contract, upon such tienns as may be approved by the governing body of thb Agency and, except as provided by Section 12(s), the Cities. 4"tloo 19l Coetieyedor of `Services. A` Clty, ;units; Wclefts:an o tion ;under 1§iictI'On" 13 of J withdraws udder Sectic Iii, allot) lisve the right j6 the continued a li.!'ipsip•t ! . urvl s pro- vided under the provisions of this Contract for the useful Iife 'ot to System b; g~rit►g written hotica to'thd'lAgeney at least S years pdbr to the scheduled termination of this CoAira&(a sped- J fled in Section 1) provided that if sue h terrninadoh, is occesloned by making pran'.sfon fot, the I paymcrjt;q( the Debtsof the Agency, the notice mgy,be given within 90 da s,.qf such prevision being { metier t~ 4~y s'x.(!Q,9y'ga~fd f° 4?nNf; Eiayip ~r► pop~ttloaat4.shFe o,;he' ARnut,lYs!sy, Se 1414, 201 City Not Id Sell Its Elmile System. FAch City covenants that during the'term of this Contract (or the extensions tbcreof) It will not sell or otherwise dispose tit its electric utility distribution syflem li{ whole of sobstantislty M a u{hole fpsr+ny entity other 4hap an &s lgne. under $ccxipp ?tt pf this ~untract Od, It?,lbe ~aso.c,~'sycfi an'tsfilg'~S4 pPiy wit the ` ern cgn;pn~ 4f *4,!k4f!ic op 3ectlblt~'~21i'ASslgrt»tVf1 "6f'lt gMs 61 Y!Citj;r l~`rCtity'4h~y"aalfpti'iny 'bf st! 'ri w!at4Eet' this Nh&ikt'rd'~n6iAWi6tiO;!;f'Ormittbd b'y"kpoabii U4, but'wiije fit 61wif,aii $Itit ~'"ibill ralcvi itcit` Clt j+"at !ts"iobllafitfhYt`dndbt 41ti!' Corittct' `(l nciiid~ dg`the" 6tii~glddti?r'tI rester l4aM14s' 10, 11 Ad'I 4 S so long as aty Bonds are outstanding 11 ,Sec)Ion 12s Diasolgitfaa" of the Agtsicy, .tit such tlw! bs the Nbts of the-ASOW have bed pald or proid►inas made therefor,purtdant to A,rticle,Xl of the Bond Resolutions and the,A8ency;4 dp'Ati(ved, RetioXtyI, who,llas;not mitde On 'election eutidee Sootion 13 oriwldA!kwo tinda,Sealoa,l6'tliail;bin entitled to 1n undiVded fna;rert In the propertles of the Agency in proportlois to the'amourt paid to'the Agency under this Contract. !ii f,, il,i'1 J'14 (:?IY yf, r. ij.rl :1: 3r.q. ,~I 1. )'A!. :'il')1.'fl s!.i fib, t7:, L. 1`J'7',:{ •P. f. ,'a J"` on MIForm blojerweo! U t'1! ir ' t '(a►)'! If tit"gn'y tF.tti'pir S~f'"fbs~b' niaJeiite"dn~' F,!''tt!e l+trt)eA' h'eretb ishatl `be ''r~,ndtr2d 'unalire, wh6lly° o"t°Ih 7C; t$ eitwolit'fts'ohtfki lohi undce'thiij Cohtr'1bt,'otlirir' !r'ah` th2'obldtlon'i►f N de's tit M1Ake'thc p~aytid~.ht±E't'nn!'d'ui►Jesitfit lclh4s"df't}iiitCohGeef,`'th0h'iF;such'ai`ihe11'gi~e'notite at♦dthdtu"IF'#s'ar13r~le~d!tsf'bt~h rEiasosy's'Ir♦''~Milfn ot>!fEr'~laft~r ~v1t ir~~'#~fb'ei»ilibfe'~nid'3iftl'r the occurrened"dr'11W o4Ent "u'16A Will l''bn;`'tR6'WI 6 soh` hf thb' p ;r{ rr"glvjh'g`i,ti'shrnoticr, "td fir as It is affeated by surh "fl ee majeure," sllall be si.spendfd duringg, ~ , conflfu Lee Over Inabilit then clA MM,~ Nil for no kiligd' ~iod 'akd'suth`paHy ahall4nJe'ado t t 1naMRty with'alt 06imlibli dspitch: &.'Ur•ld 416fa'6)eke'►'el Odd,,Arikest'Mk 'outl; dr1iti%.Ij i (6tj9at nisidrb'enc~es,'>~ct;'bf't"nb lic'e'dc "tar Ott dr ~hiorfs~'o( any klhd bf the! flevtftf>nein`"ot'"til'e' U'tilt'ed'SlaYr<s"'dlri'iit`thd`g''ale ot`"Cnrt1j 160. 4 a*11 6t,1hfitliri authority, insurrecdon:i, rio!s, epidemics, landslides<;'•fighir i'd;' arfhgt;ak6i; 69,' hurriCitn`ee,' ~ttrEAlt, floods, washouts, droughts, arrests, restraints of governm nt grid topic, clsif disturf~o~stKxs, ex osions, breakage 1ok1on: i'iteftt `tn'daig; i~taC~titraiy,' ~Flfs A"`'tfP~ttl~IFilc'yc,t t3thtdlt'ikf~lis'rt~ tn~bls , oq secouny'of art iblher ftiiLde'~btrblsohlibt~i'~iti+iil tfi~'ctt~itrb("of th~'~i#ffy' ~liilnil'n'$'~dt~ f ifit~~It~ s mriderstood wid 1104 thsttltb'atlalefhenti of stflkiii aihd (ocSc'It►ifs''sliatl'be e'tltlidly ivfihtis 'Ab leFf~ 'E of the party having the difikulty, and that the 4164 reyulrErtienf' thlt` a~s'jr AE'tiFc 'fi 4jeG H " h1fi''(st ` I 1 Mimi fe"-dicd witb,all reasonable dispatch shall not require the settlement q( strikes and lockouts by ,accc(jipg .fq firs, cremand, of, thq opposing parties when such witientent Is unfavorable, to it in the judgrocrit of the party haying the difficulty, i (li) No damage shalt' be rt -~ovciAle from lho' Agrney, br the Citie by reason of the causes above mentton'cd. Strtlon 24, Insurance. ' (a), `fhe Agency shall maintain, or cause to be maintained in force for the benefit of t6c'Ag4ncy, uch insurance `with respect to the Syfcm as shall be reasonably available and as is usuaily'carrjed by municipal electric utilities constructing and operating generating and transmission facilities but, in the case of nuclear generating facilities, not less than will satisfy the requirements of federal and state law and the Nuclear Regulatory Comntls,lon `regulations and such other insurance as is usually carded by ryuniCipa' electric utilities owning like properties Proviged, howe err in~arny event, the Agency shall maintain, or Cause to he maintained, in force, insurance n such amounts and agaitrst such or as rc 'UlreJ bey the liottd Rcwtution. (b) - The Agency will secure and maintsin'adeyuate fidelity insurance or bonds on'all officers ,and employees handlipg or responsible for funds of the Agency. (c?' thd"oblj ttor►'~r'ercunder to peci Ire ind matn(a n insurance with','respbct }o a joitit'~project as &flned' III ~ht Wohd'Ressolultoal shall'be'tnet rf'"tlie'tntjly actirig''a. the manajcr of the Mni Project obtain, and rtiaintaiiis the insurance required for the beecfit i of ; all :o'vners or the taint, Project, as thOt interest may tpVar, `fhe''Agen, y ettalbrlsh 'a{,d crrat ' a sptci'al fund rot tpa eurpos` got providihi a self in'&rWe'(ithd.`AMo,iSt's to'ticdeposited lA''oi`trMMd`i&'such"fuY4i#`ir1 'anjr'Contra.t' ear'sh'a1t ,k q) nF",, 9t9l 4°t ac, Qpcr#ltng. ~.Iaintpgapce xpcn'Sf#'-,Tp the wi; th8t.1ii5'gl dart d Ojn such Sf<!i+,ih6rr~fSlr su4 fnP,4i !ilaY i?fvF'F1n1 1>s;nlescr>?et2t $e4N1k'.deliged In the Aq,Sesalu) ('I°Arr ~ j e yat tt,o.,lht,~{ttQyRl; he144,ipJ~lf~?!lftlyd~ the 4fe,pf,app,44'Prtato i~►surartc, PQtieEes may be rtuced. bis:q Sttdon+ZSt R►pOtis.' Tha,AgEney vill,prepdre and itmilib erttN City Cho folloar'tdg reports for each Sst:al year,, (S) finbiteial and opetating'ktateroerg•telating to thoSystem; (ii) itatusof cons'lruction for 'tech `f lcility.cbrntituting, the System during calstnlction; and' 00 analysis. of operations relating tQthoSyslema„, r7 ri•!t'}ey j n' ,df it ) ~;0", I'.j .J) Uri .r_r , . Seciloo 26; Reconls and Accounts. The Agency will keep accurate records and accounts of the 5ysteitt and of the trastartctions relating th each facility constituting the' Sysleitit ai 1ko:1 tis 6f the aP4Sar4qti~, PR, 4be /~$ei!1fY ,its aQcotd#nCe n th, fh~„un44.rg? !5yst541jof AINounts, clt,,shall. Include lrftllf'its,rlYtth~,pea,ha1151rc ,tWSitfiY.(I Qi,d#Ys,fifS4t,cfase,,or each,Gk'ntracl;Ye~lr0jho AgeNY s??~l~,cgNaei~u b rec d a sets. d ti, a tf?4..Is8 y10sling,to,the,SYatept With Fef ~tl,14 $tlS I `ji~f4@r tlt ,f}lbjeeh'#°.ran~:$A4Nal,rapt'it,by JU),i;0p;pc4cnt cinik, PUNIC t ~ScQ9nta~~.~,~9pY,Q lf?tc jS4E~,,~V't4i4t~~,iik~it,phdl,b~,;KePt,~aY~1c. Agency fP,~eh Cjty~~l, J I , ~y j e ve so able access tq "amino, any apd '1 „ Stycl `tilt .j>7t ~ccc sl, a¢h t s j~11 at a1j m a, }l:r , ff# i 1?Qt` a,rfco~d~~!?1 1 Ft: tf►cY sn~}~ Q,,cp nc any;fActllty qf4h~ ,Sysivirt, T q.AgepcY,and.each ~ tE~',Im iYa 4het o.hef 0~'O S tJ41aritt A 4 e. Prfmi4Sa~,p~ e) ~}bef #t,e11 reafRnablei limas ;lots the " rp F qt? r pair qg ~S r rttpvinA !a~'tljtiesr, r}adjr)g n?elprs,tti?~ perfprrtting work, incidental.ta delivery ttprrficeipl r>Y ,awer aQ,di ~~~rgy~urnls~erj j►erep{lder --t , IL'' I ~fr~ uI o >r 'E:he o tract ;h ll be suN'evt, tP all fed r V ` J. R P 1 Y ~b f~e~~, a~ ~adopp„ 91o,140 applicable, tl►ertl4t as pron)Plgaled by,* united btatcs of Arnerica, ~tAw. ,Iftw'tgf,sR~'Y~•'t~er g)oyefplq?' kal M>fry or agerlq having iaiafµt jurisdisrion or_rny IIP~P~~:,4fY44~gtAt~Ye 9"r~ageney,~~~;r9nY,tpt, ~te!p.. , . t~ i r ! Its ■I~ X111 ~ S"llcot'291 Emerrientsl Each City agrees that the Apency or its agent shall (when permitted by e%isting la'sentent) have full access to such easements or over any casements, right-of-way or property held by such City if, and to the extent, required by the'Agencyfor any i,nd ari ptirposes'requirtd for the System or any Project thereof. Section 30: Cancellation of Nor Contract. In connection with the k uance of $10,62.5,000 FERI, MUNICIPAL PowER AGENcv' REVENUE BONDS, SERIES 1975, the Cities and the Agency have heretofore entered into'a contract' which is incorporated in an instrument entitled, "Contract for Develop- ment of Fuel Resources, Planning Electric Generation Facilities and Perfnrrning Certain Duties;" which contract was dated September 15, 1975; that such contract provided certain payments would be made by each City to the Agency for the payment of debt service on the aforesaid Series 1975 bonds apd maintenance and operating expenses or the Agency. The parties agree that upon the effective date of this Contract and the cancellation of said bonds, the prior contract shall be cancelled In its entirety and no payments shall continue to be made thereunder for any purposq and this Contract shill supcrcede such prior contract in every respect. Section 31t Notices. Any notice, request, demand, statement or bill provided1 for in this Con- tract shall be in writing and shall be considered to have been duly delivered when sent by registered or certified mail, addressed as follows, unless' 2n'other address has been designated, in writing, by the party entitled to receive same: Agene} Texas Munkippal Power Agency City of Bryan 7111 Bosque Boulcvarri P. O. Box 1000 Waco, Texas 76710 Bryan, Texas 77801 Attention: Executive Director Attention; City Manager City `bi VrW411?e P. O. Box 1049 Greenville, Texas Attention: City Manager i.,: s2s City of Denton ' Civic Building Drnt~atTc~$4»720.1, :;sr Att5Q qp:,,qty Manager r > City of Garland P. O: Box 401989 r , . I Garland, Texas 75046 Attention: City Manager r r t , f, Section 31t Severabilily. The parties hereto agree that if any of the provisions of this Contract should contravene or be held Invalid under the laws of the State 'of 4ifiti tdch c' otitraventirtt f6r invalidity shalt not Invalidate the whole Contract but It shall be conktrM4,M J*gh not containing that particular provision, and the rights and obligations of the parties shall be construed and in force accordingly. Section 331 Contracts to be Separate. This Instrument embodies four separate contracts between the Agency and wh City. Terrhination of oni!'Contracl shall not affect the others, g.17 IN WITNESS WHEeEOP, the parties hereto havo caused this ConlrBct to be executed In their cor- porate names and their corporate seals affixed, all by the proper ofl{cer duly Authorized thtreunto, as of the day and year W hereinabove written. TEX1S MUNICIPAL I'oWER AGENCY BY':...... /S/ C. B. DUCKWORTH L (SEAL) AMST, By: !a «t WHITE Secretary City of Bryan, Texas (SEAL) 'D /I/ JILOYD JOYCE j ATTEST: I Mayor BY:......::. /s/ Zoe E..EvANS.:...... [ Crry.serrf(ary r,7 „ A j r + City Uf Denton, Texas -,sal .!i ~ ,if (SEAL) By: /S/ ELINOR HuriHES ATTEST: aBy: A tROO)tt hlbt T I t~Clrv Seciiio+y+"t' City of Garland, Texas I+ E ,;x,11 i0 ,9 . G. CLACK (SEAL) BY /.a./..CHARLES. if„,th ATTEST: Mayor B ~10ALarn WATSON,II1 11 ' C16 Secretary City of Greenville -r.r,,4,r f q.7y, °r~( r) r11:aI,`ti ( i r,is+" i 1 `l„ 7 (SEAL) By; /s/ ~oNN T1 OFcPrIN ATYSST: Mayor By: ....../I/ IRENE WILSON City Clerk h•iR 18'dipB11T A fi'Q7J~[f),OV DEL1VERX ' Bryan: ' I. ttryAn Plant: Facilities included are as follows: (a) 138 KV lines (b) 200 hIVA, 138/69 KV autotransformer (c) associated breakers, bus u ork,' switches, etc. 2. Nall Substation: Facilities incb!;:ed are: (a) 138 KV lines (b) 200 MVA 138/69 autotransformer (c) 450 MVA, 345/138 KV autotransformer (d) 345 KV lines (e) associated breakers, bus work, switrl#4s, etc. f 3. South East Bryan Substation: Facilities Included are as follows: a'i I r i l y (a) 138 Mines (b) 200 WA, 138/69 KV autotransformer (c) associMod breakers, bus work, swjt.',bcs, etc. Uealon, 1. Dcaton Plant; Facilities included are as follows: (a) 138 KV lines (b) associated breakers, bus wort, switches, eta 2. North Denton Substation: Facilities Included are as follows: (a) 138 KV lines (b) 450 WA, 345/138 KV autotransformer (c) associated breakers, bus work, switches, etc. 1 Garlaodt 1. Apollo Substation: Facilities Included are as follows: (a) 138 KV Interconnection with TP&L (b) associated breakers, bus work, switches, tic. 2. Oates Substation: Facilities Included are as follows: (a) 138 KV Interconnecttons, with TP&L (b) 450 MVA 345/118 KV autotransformer (e) 345 KV lines (d) associated breakers, bus works, switches, etc. H-19 3 13cn Davis Substation Facilities Included are as follows: , (a) 450 MVA, 345/138 KV autotransfotmer (b) 345 KV lines (c) associated breakers, bus work, switches, etc. 4. McCrea Substation Facilities included are as follows: (a) 450 MVA, 345/138 KV autotrAlsformcr (b) 343 KV lines (e) associated breakers, bus work, switches, etc. Greenville: 1. Steam Plant Facilitles Included are as follows: (a) 138 KV line (b) 75 MVA, 138/69 KV autotranstoiincf (c) associated breakers, bus work, switches, etc, 2. Diesel Plant Facilities Included are as follows: (a) 138 K.V line (b) 75 MVA, 138/69 KV autbtransf6mI 1 (c) woclated breakers, bus work, switches, etc. 1111`4 'r e'.; ri t r 1 r r 1 , jP ; e. t,t LAG lL3ifla~!'tt I SCHEDULE B RATES AND CIIARGES (1) RATES FOR POWER AND ENERGY The rates to be ci,arged by the Agency for Power and Energy furnished to the Cities shall consist of & demand charge and energy chcFge, Thcse charges shalt be based on cost of service to the degree that is practical. The costs used in dcvelopin, cost of service rates shall he based on accounting entries as outlined in the Federal Power Commission's Uniform System of AccQUnIs, The rates for demand charges shall be established to recover costs that arc related to Debt Service, (including coverage ratios), other ordinarily predictable stable Operating and Maintenance Expenses anti such other reasonable fixed costs as these costs relate to plant and transm{rsiosi capacities utilized, The demand charges shall be based on the above listed costs in proportion to toW W that the Agency has available. Proper consideration shall be given in &c demand charges for such factors or coincident peak demands, diversity factors, toad factors, etc. of the Cities. Energy charges shall be based on fuel costs, operating personnel cosh, variably Operating and Maintenance Expenses, postage stamp qPe transmission losses, station service energy, and other such reasonable variable costs as these costs relate to energy provided to Cities. The rate making methods used to develop these demand and energy charges shall be consi:eamt with standard utility wholesale rate making procedures. These, methods shall be applied as appropriate to the System. it is recognize that these rates shall be developed in a rcasonAbly equivalent manr:r as similar wholesale pow:, suppliers, Stag Utility Cutnmission guidelines, and FPC rate regulations as applied to like power systems. (Z) RAT0 FOR SERVICES PROVIDED TO ALL CITIES i Various services rhali be provided to all Cities as dirwted by the Board of Directors and will be paid !or by the Cities at a rate per kilowatt-hour which shall be established ftm time to tirrie by the board of Directors. Each City's share of such charges shall be that ponlon of the total typwtitod by the ratio of his share of the net energy for load to the total net energy for loid of all of the (Alt+, Billings will be made: in advance on estimates of loads and paid evenly throuEhme, the year, (S) RATES FOR SPECIAL SERVICES PROVIDED TO A SKCIFIC CITY Specia! services may be provided to a member from time to time at the request of a (Ity. Reimbursement for these services will be made at cost by the City receiving the services. it E-2 I ~r■ar~tt~t+~~tttr~.t~'16~tt'~,I~W~1~