1980-028ORDINANCE NO 80-9
ORDINANCE AUTHORIZING THE ISSUANCE OF CERTIFICATES OF OBLIGATIONS
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WHEREAS, Vernon's Article 2368a 1 permits the City to
issue and sell for cash the Certificates of Obligation here-
inafter authorized, and
WHEREAS, the City has duly caused notice of its intention
to issue the Certificates of Obligation hereinafter authorized
to be published at the times and in the manner required by
Vernon's Article 2368a 1, and no petition has been filed pro-
testing the issuance thereof
THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
Section 1 That the said City's Certificates of Obliga-
tion (hereinafter sometimes called "Certificates") are hereby
authorized to be issued in the aggregate principal amount of
$250,000, FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE
CITY'S CONTRACTUAL OBLIGATIONS TO BE INCURRED PURSUANT TO CON-
TRACTS FOR THE EXPANSION OF THE LIBRARY IN THE CITY, AND PAY-
ING ALL OR A PORTION OF THE CONTRACTUAL OBLIGATIONS FOR PRO-
FESSIONAL SERVICES OF ENGINEERING, ARCHITECTS, ATTORNEYS, AND
FINANCIAL ADVISORS IN CONNECTION WITH SUCH LIBRARY AND CERTI-
FICATES OF OBLIGATION
Section 2 That said Certificates shall be designated
as the CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES
1980
Section 3 That said Certificates shall be dated APRIL
15, 1980, shall be in the denomination of $5,000 each, shall
be numbered consecutively from one upward, and shall mature
serially on the maturity date, in each of the years, and in
the amounts, respectively, as set forth in the following
schedule
MATURITY DATES APRIL 15
YEARS AMOUNTS
1986
$25,000
198'7
25,000
1988
25,000
1989
25,000
1990
25,000
1991
25,000
1992
25,000
1993
25,000
1994
25,000
1995
25,000
Section 4, That said Certificates shall bear interest
as follows from April 15, 1980, to April 15, 1981, at the
rate of 9,90 % per annum, cZ*)z*~xx3cfkxxxlKStiAxxxiewftx*&xi&
Uxx*dkxj4k&xRaAftxgj&xnxxx~xx$cxae*xR x and from April 15, 19 81,
to maturity or redemption at the rate of 10 00% per annum
Said interest shall be evidenced by interest coupons which
shall appertain to said Certificates, and which shall be pay-
able in the manner provided and on the dates stated in the
FORM OF CERTIFICATE set forth in this Ordinance
-1-
Section 5 That said Certificates and interest coupons
shall be issued, shall be payable, may be redeemed prior to
their scheduled maturities, shall have the characteristics,
and shall be signed and executed (and said Certificates shall
be sealed), all as provided, and in the manner indicated, in
the FORM OF CERTIFICATE set forth in this Ordinance
Section 6 That the form of said Certificates, includ-
ing the form of Registration Certificate of the Comptroller
of Public Accounts of the State of Texas to be printed and
endorsed on each of said Certificates, and the form of the
aforesaid interest coupons which shall appertain and be at-
tached initially to each of said Certificates, shall be, re-
spectively, substantially as follows
FORM OF CERTIFICATE
NO
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
CERTIFICATE OF OBLIGATION
SERIES 1980
$5,000
ON APRIL 15, 19_, THE CITY OF DENTON, in Denton County,
Texas, hereby promises to pay to bearer the principal amount of
FIVE THOUSAND DOLLARS
and to pay interest thereon as follows from April 15, 1980,
to April 15, 1981, at the rate of % per annum, from
April 15, 1981, to April 15, 19 , at the rate of % per
annum, and from April 15, 19 , to maturity or redemp ~t on at
the rate of 8 per annum, evidenced by interest coupons
payable APRIL 15, 1981, and semiannually thereafter while
this Certificate is outstanding
THE PRINCIPAL of this Certificate and the interest coupons
appertaining hereto shall be payable to bearer, in lawful money
of the United States of America, without exchange or collection
charges to the bearer, upon presentation and surrender of this
Certificate or proper interest coupon, at the following, which
shall constitute and be defined as the "Paying Agent" for this
Series of Certificates
FIRST STATE BANK,
DENTON, TEXAS
THIS CERTIFICATE is one of a Series dated as of APRIL 15,
1980, authorized, issued, and delivered in the principal amount
of $250,000 FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE
CITY'S CONTRACTUAL OBLIGATIONS TO BE INCURRED PURSUANT TO CON-
TRACTS FOR THE EXPANSION OF THE LIBRARY IN THE CITY, AND PAY-
INGIALL OR A PORTION OF THE CONTRACTUAL OBLIGATIONS FOR PRO-
FESSIONAL SERVICES OF ENGINEERING, ARCHITECTS, ATTORNEYS, AND
FINANCIAL ADVISORS IN CONNECTION WITH SUCH LIBRARY AND CERTI-
FICATES OF OBLIGATION
THE OUTSTANDING CERTIFICATES of this Series may be re-
deemed prior to their scheduled maturities, at the option of
said City, in whole, or in part, on any date, for the princi-
pallamount thereof and accrued interest thereon to the date
fixed for redemption At least fifteen (15) days prior to the
date fixed for any such redemption said City shall cause a
-2-
written notice of such redemption to be given to the "Paying
Agent" By the date fixed for any such redemption due provi-
sion shall be made with the "Paying Agent" for the payment of
the principal amount of the Certificates which are to be so
redeemed and accrued interest thereon to the date fixed for re-
demption If such written notice of redemption and if due
provision for such payment is made, all as provided above, the
Certificates which are to be so redeemed thereby automatically
shall be redeemed prior to their scheduled maturities, and they
shall not bear interest after the date fixed for redemption,
and they shall not be regarded as being outstanding except for
the right of the bearer to receive the redemption price from
the "Paying Agent" out of the funds provided for such payment
IT IS HEREBY certified, recited, and covenanted that this
Certificate has been duly and validly authorized, issued, and
delivered, that all acts, conditions, and things required or
proper to be performed, exist, and be done precedent to or in
the authorization, issuance, and delivery of this Certificate
have been performed, existed, and been done in accordance with
law, that this Certificate is a general obligation of said City,
issued on the full faith and credit thereof, and that annual ad
valorem taxes sufficient to provide for the payment of the in-
terest on and principal of this Certificate, as such interest
comes due and such principal matures, have been levied and or-
dered to be levied against all taxable property in said City,
and have been pledged irrevocably for such payment, within the
limit prescribed by law, and that this Certificate is addition-
ally secured by and payable from the surplus revenues derived
by the City from the ownership and operation of the City's
Electric Light and Power System remaining after payment of
W all operation and maintenance expenses thereof, and all
debt service (Retirement Fund), Reserve Fund, Contingencies
Fund, Improvement Fund, and other requirements, payments, and
deposits required in connection with the City's Revenue Bonds
(now or hereafter outstanding) which are payable from Net
Revenues of the City's Electric Light and Power System, and
(ii) payment of the principal of and interest on the City of
Denton Certificates of Obligation, Series 1979-A, dated
December 1, 1979, and other requirements, payments, and de-
posits required in connection with the City's Certificates of
Obligation, Series 1979-A
IN WITNESS WHEREOF, this Certificate and the interest
coupons appertaining hereto have been signed with the facsimile
signature of the Mayor of said City and countersigned with the
facsimile signature of the City Secretary of said City, and the
official seal of said City has been duly impressed, or palced
in facsimile, on this Certificate
xxxxxxxx xxxxxxxx
City Secretary Mayor
FORM OF REGISTRATION CERTIFICATE
COMPTROLLER'S REGISTRATION CERTIFICATE REGISTER NO
I hereby certify that this Certificate of Obligation has
been examined, certified as to validity, and approved by the
Attorney General of the State of Texas, and that this Certi-
ficate of Obligation has been registered by the Comptroller
of Public Accounts of the State of Texas
Witness my signature and seal this
xxxxxxxx
Comptroller o Public Accounts of
the State of Texas
-3-
FORM OF INTEREST COUPON
NO
ON 15, 19_,
THE CITY OF DENTON, in Denton County, Texas, promises
to pay to bearer the amount shown on this interest coupon,
in lawful money of the United States of America, without
exchange or collection charges to the bearer, unless due pro-
vision has been made for the redemption prior to scheduled
maturity of the Certificate to which this interest coupon
appertains, upon presentation and surrender of this interest
coupon, at
FIRST STATE BANK,
DENTON, TEXAS,
said amount being interest coming due that day on the Certi-
ficate, bearing the number hereinafter designated, of that
issue of CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES
1980, DATED APRIL 15, 1980 Certificate No
xxxxxxxx xxxxxxxx
City Secretary Mayor
Section 7 That a special "Interest and Sinking Fund" is
hereby created solely for the benefit of said Certificates, and
said Interest and Sinking Fund shall be established and main-
tained by said City at an official depository bank of said City
Said Interest and Sinking Fund shall be kept separate and apart
from all other fynds and accounts of said City, and shall be
used only for paying the interest on and principal of said Cer-
tificates All ad valorem taxes levied and collected for and
on account of said Certificates shall be deposited, as collect-
ed, to the credit of said interest and Sinking Fund During
each year while any of said Certificates or interest coupons
appertaining thereto are outstanding and unpaid, the governing
body of said City shall compute and ascertain a rate and amount
of ad valorem tax which will be sufficient to raise and produce
the money required to pay the interest on said Certificates as
such interest comes due, and to provide and maintain a sinking
fund adequate to pay the principal of such Certificates as such
principal matures (but never less than 2% of the original prin-
cipal amount of said Certificates as a sinking fund each year),
and said tax shall be based on the latest approved tax rolls of
said City, with full allowance being made for tax delinquencies
and the cost of tax collection Said rate and amount of ad
valorem tax is hereby levied, and is hereby ordered to be levied,
against all taxable property in said City for each year while
any of said Certificates or interest coupons appertaining there-
to are outstanding and unpaid, and said tax shall be assessed
and collected each such year and deposited to the credit of the
aforesaid Interest and Sinking Fund Said ad valorem taxes
sufficient to provide for the payment of the interest on and
principal of said Certificates, as such interest comes due and
such principal matures, are hereby pledged irrevocably for such
payment, within the limit prescribed by law
Section 8 Said Certificates additionally shall be pay-
able from and secured by the surplus revenues derived by the
City from the ownership and operation of the City's Electric
Light and Power System remaining after payment of (i) all
operation and maintenance expenses thereof, and all debt ser-
vice (Retirement Fund), Reserve Fund, Contingencies Fund, Im-
provement Fund, and other requirements, payments, and deposits
-4-
required in connection with the City's Revenue Bonds (now or
hereafter outstanding) which are payable from Net Revenues of
the City's Electric Light and Power System, and (ii) payment
of the principal of and interest on the City of Denton Certi-
ficates of Obligation, Series 1979-A, dated December 1, 1979,
and other requirements, payments, and deposits required in
connection with the City's Certificates of Obligation, Series
1979-A The City shall deposit such surplus revenues and the
ad valorem taxes levied pursuant to Section 7 hereof to the
credit of the Interest and Sinking Fund created pursuant to
Section 7 in an amount sufficient to pay the principal of and
interest on the Certificates herein authorized, and if surplus
revenues are actually on deposit in the Interest and Sinking
Fund in advance of the time when ad valorem taxes are schedul-
ed to be levied for any year, then the amount of taxes which
otherwise would have been required to be levied pursuant to
Section 7 may be reduced to the extent and by the amount of
the surplus revenues then on deposit in the Interest and
Sinking Fund
Section 9 That the Mayor of said City is hereby author-
ized to have control of said Certificates and all necessary
records and proceedings pertaining to said Certificates pend-
ing their delivery and their investigation, examination, and
approval by the Attorney General of the State of Texas, and
their registration by the Comptroller of Public Accounts of
the State of Texas Upon registration of said Certificates,
said Comptroller of Public Accounts (or a deputy designated
in writing to act for said Comptroller) shall manually sign
the Comptroller's Registration Certificate printed and endors-
ed on each of said Certificatess, and the seal of said Comptroller
shall be impressed, or placed in facsimile, on each of said
Certificates
Section 10 That the City covenants to and with the pur-
chaser of the Certificates that it will make no use of the pro-
ceeds of the Certificates at any time throughout the term of
this issue of Certificates which, if such use had been reason-
ably expected on the date of delivery of the Certificates to
and payment for the Certificates by the purchaser, would have
cau8ed the Certificates to be arbitrage bonds within the mean-
ing of Section 103(c) of the Internal Revenue Code of 1954, as
amended, or any regulations or rulings pertaining thereto, and
by this covenant the City is obligated to comply with the re-
quirements of the aforesaid Section 103(c) and all applicable
and pertinent Department of the Treasury regulations relating
to arbitrage bonds The City further covenants that the pro-
ceeds of the Certificates will not otherwise be used directly
or indirectly so as to cause all or any part of the Certificates
to be or become arbitrage bonds within the meaning of the afore-
said Section 103(c), or any regulations or rulings pertaining
thereto
Section 11 That it is hereby officially found and deter-
mined and declared that a case of emergency or urgent public
necessity exists which requires the holding of the meeting at
which this Ordinance is passed, such emergency or urgent public
necessity being that the proceeds from the sale of said Certi-
ficates are required as soon as possible and without delay for
necessary and urgently needed public improvements, and that
said meeting was open to the public, and public notice of the
time, place, and purpose of said meeting was given, all as re-
quired by Vernon's Ann Civ St Article 6252-17
-5-
Section 12 That said Certificates are hereby sold and
shall be delivered to First State Bank of Denton Denton Texas
for cash for the par value thereof and any accrued interest to
date of delivery, and any such accrued interest shall be de-
posited into the interest and Sinking Fund
-6-
CERTIFICATE FOR
ORDINANCE AUTHORIZING THE ISSUANCE OF CERTIFICATES OF OBLIGATION
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
We, the undersigned officers of said City, hereby certify
as follows
1 The City Council of said City convened in
REGULAR MEETING ON THE 1ST DAY OF APRIL, 1980,
at the Municipal Building (City Hall), and the roll was call-
ed of the duly constituted officers and members of said City
Council, to-wit
Brooks Holt, City Secretary Bill Nash, Mayor
Roland Vela Dick Stewart
Ray Stephens Bud Hensley
and all of said persons were present, except the following
absentees Ray Stephens
thus constituting a
quorum Whereupon, among other business,
the following was transacted at said Meeting a written
ORDINANCE AUTHORIZING THE ISSUANCE OF CERTIFICATES OF OBLIGATION
was duly introduced for the consideration of said City Council
and read in full It was then duly moved and seconded that
said Ordinance be passed, and, after due discussion, said mo-
tion, carrying with it the passage of said Ordinance, prevail-
ed and carried by the following vote
AYES All members of said City Council
shown present above voted "Aye"
NOES None
2 That a true, full, and correct copy of the aforesaid
Ordinance passed at the Meeting described in the above and fore-
going paragraph is attached to and follows this Certificate,
that said Ordinance has been duly recorded in said City Council's
minutes of said Meeting, that the above and foregoing paragraph
is a true, full, and correct excerpt from said City Council's
minutes of said Meeting pertaining to the passage of said Ordi-
nance, that the persons named in the above and foregoing para-
graph are the duly chosen, qualified, and acting officers and
members of said City Council as indicated therein, that each of
the officers and members of said City Council was duly and suffi-
ciently notified officially and personally, in advance, of the
time, place, and purpose of the aforesaid Meeting, and that said
Ordinance would be introduced and considered for passage at said
Meeting, and each of said officers and members consented, in ad-
vance, to the holding of said Meeting for such purpose, and that
said Meeting was open to the public, and public notice of the
time,, place, and purpose of said meeting was given, all as re-
quired by Vernon's Ann Civ St Article 6252-17
3 That the Mayor of said City has approved, and hereby
approves, the aforesaid Ordinance, tnat the mayor and the City
Secretary of said City have duly signed said Ordinance, and
that the Mayor and the City Secretary of said City hereby de-
clare that their signing of this Certificate shall constitute
the signing of the attached and following copy of said Ordinance
for all purposes
NED AND SEALED the 1st day o pril, 1980
City ec- tary Mayor
(SEAL)
8u )2?