1979-084 ORDINANCE NO 79-~
ORDINANCE AUTHORIZING THE ISSUANC~ OF CERTIFICATES OF OBLIGATION
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-
lnafter 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 Obligation
(hereinafter sometimes called "Certificates") are hereby author-
lzed to be Issued in the aggregate principal amount of $275,000,
FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE CITY'S CON-
TRACTUAL OBLIGATIONS INCURRED PURSUANT TO CONTRACTS FOR THE
CONSTRUCTION OF A CENTRAL FIRE STATION IN THE CITY, AND PAYING
ALL OR A PORTION OF THE CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL
SERVICES OF ENGINEERING, ARCHITECTS, ATTORNEYS, AND FINANCIAL
ADVISORS IN CONNECTION WITH SUCH CENTRAL FIRE STATION AND
CERTIFICATES OF OBLIGATION
Section 2 That said Certificates shall be designated
as the CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES
1979-A
Section 3 That said Certificates shall be dated
DECEMBER 1, 1979, 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 JUNE 1
YEARS AMOUNTS
1990 $25,000
1991 25,000
1992 25,000
1993 25,000
1994 25,000
1995 25,000
1996 50,000
1997 75,000
Section 4 That said CertIficates shall bear interest
at the rate of 7 875% per annum, evidenced by interest coupons
which shall appertain to said Certificates, and which shall
be payable in the manner provided and on the dates stated in
the FORM OF CERTIFICATE set forth in this Ordinance
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
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Sectaon 6 That the form of saad Certaflcates, includ-
ing the form of Regastrataon Certa~lcate of the Comptroller
of Publac Accounts of the State of Texas to be printed and
endorsed on each of saad Certaflcates, and the form of the
aforesaad anterest coupons which shall appertaan and be at-
tached lnatlalty to each of said Certaflcates, shall be,
respectavely, substantaally as follows
FORM OF CERTIFICATE
NO $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
CERTIFICATE OF OBLIGATION
SERIES 1979 - A
ON JUNE 1, 19__, THE CITY OF DENTON, IN DENTON COUNTY,
TEXAS, hereby promases to pay to bearer the prancapal amount of
FIVE THOUSAND DOLLARS ,,
and to pay anterest thereon, from date hereof, at the rate of
7 875% per annum, evadenced by anterest coupons payable
DECEMBER 1, 1980, ~nd semaannually uher~after whale this Certa-
facate ls outstanding
THE PRINCIPAL of thas Certlfacate and the interest coupons
appertaaning hereto shall be payable to bearer, in lawful money
of the Unated States of Ameraca, wathout exchange or collectaon
charges to the bearer, upon presentataon and surrender of this
Certificate or proper interest coupon, at the followang, which
shall constitute and be defaned as the "Paying Agent" for thas
Seraes of Certaflcates
FIRST STATE BANK,
DENTON, TEXAS
THIS CERTIFICATE as one of a Seraes dated as of DECE~4BER 1,
1979, authorazed, assued, and delavered in the principal amount
of $275,000 FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE
CITY'S CONTRACTUAL OBLIGATIONS INCURRED PURSUANT TO CONTRACTS
FOR THE CONSTRUCTION OF A CENTRAL FIRE STATION IN THE CITY, AND
PAYING ALL OR A PORTION OF THE CONTRACTUAL OBLIGATIONS FOR PRO-
FESSIONAL SERVICES OF ENGINEERING, ARCHITECTS, ATTORNEYS, AND
FINANCIAL ADVISORS IN CONNECTION WITH SUCH CENTRAL FIRE STATION
AND CERTIFICATES OF OBLIGATION
THE OUTSTANDING CERTIFICATES of this Seraes may be re-
deemed praor to their scheduled maturatles, at the option of
said City, in whole, or in part, on any date, for the principal
amount thereof and accrued interest thereon to the date fixed
for redemptaon At least fifteen (15) days prior to the date
faxed for any such redemption said City shall cause a written
notice of such redemptaon to be given to the "Paying Agent"
By ~he date faxed for any such redemptaon due provlsaon shall
be made wath the "Paying Agent" for the payment of the principal
amount of the Certificates whach are to be so redeemed and ac-
crued interest thereon to the date fixed for redemptaon If
such written notace of redemptaon is given and if due provision
for such payment is made, all as provided above, the Certlfacates
whach are to be so redeemed thereby automatically shall be re-
deemed 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
Certzflcate 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 interest
on and principal of this Certificate, as such interest comes due
and such principal matures, have been levied and ordered 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 additionally 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 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 C~ty's Revenue Bonds (now or hereafter
outstanding) which are payable from Net Revenues of the
City's Electric Light and Power System
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, ahd the
official seal of said City has been duly Impressed, or placed
in facsimile, on this Certificate
xxxxxxxx xxxxxxx
City Secretary Mayor
FORM OF REGISTRATION CERTIFICATE
COMPTROLLER'S REGISTRATION CERTIFICATE REGISTER NO
I hereby certlfy that this Certificate of Obligation has
beeh examined, certlfled as to validity, and approved by the
Attorney General of the State of Texas, and that this Certi-
ficate of Obllgatlon has been registered by the Comptroller
of Public Accounts of the State of Texas
Wltness my s~gnature and seal th~s
XXXXXXXX
Comptroller of Public Accounts of
the State of Texas
FORM OF INTEREST COUPON
NO $
ON 1, 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
provision has been made for the redemption prior to schedul-
ed maturity of the Certlflcate to which this Interest coupon
appertains, upon presentation and surrender of this interest
coupon, at
FIRST STATE BANK,
DENTON, TEXAS,
said amount beang anterest comang due that day on the Certa-
facate, bearing the number hereinafter desagnated, of that
assue of CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES
1979-A, DATED DECEMBER 1, 1979 Certlfacate No
xxxxxxxxx xxxxxxx
City Secretary Mayor
Section 7 That a special "Interest and Sankang Fund" as
hereby created solely for the benefat of said Certlfacates, and
saad Interest and S&nkang Fund shall be established and main-
taaned by saad City at an offacaal deposatory bank of said Caty
Saad Interest and Sankang Fund shall be kept separate and apart
from all other funds and accounts of saad Caty, and shall be
used only for paying the interest on and prancapal of sa~d Cer-
taf~cates Ail ad valorem taxes levaed and collected for and
on account of saad Certafacates shall be deposated, as collect-
ed, to the credit of saad Interest and Sankang Fund Durang
each year whale any of sa~d Certafacates or anterest coupons
appertaining thereto are outstandang and unpaad, the governing
body of said Caty shall compute and ascertain a rate and amount
of ad valorem tax whach wall be suff~caent to raase and produce
the money required to pay the anterest on saad Certificates as
such interest comes due, and to provade and maintain a sanklng
fund adequate to pay the prlncapal of such Certlfacates as such
prlnoapal matures (but never less than 2% of the orlganal pran-
capal amount of saad Cert~facates as a sankang fund each year),
and saad tax shall be based on the latest approved tax rolls of
sa~d Caty, with full allowance beang made for tax dellnquencaes
and the cost of tax collectaon Saad rate and amount of ad
valorem tax as hereby levaed, and as hereby ordered to be levaed,
against all taxable property an saad Caty for each year whale
any of saad Cert~facates or ~nterest coupons appertalnang there-
to are outstandang and unpaad, and saad tax shall be assessed
and collected each such year and deposited to the credat of the
aforesaad Interest and Sank~ng Fund Saad ad valorem taxes
suffac~ent to provade for the payment of the anterest on and
pranc~pal of sa~d Certificates, as such anterest comes due and
such principal matures, are hereby pledged arrevocably for such
payr~ent, w~thin the l~mlt prescrabed by law
Section 8 Sa~d Certaflcates addat~onally shall be pay-
able from and secured by the surplus revenues derived by the C~ty
from the ownership and operation of the C~ty's Electrac Llght and
Power System remaanang after payment of all operation and malnten-
ance expenses thereof, and all debt servace (Refarement Fund), Re-
serve Fund, Contingencies Fund, Improvement Fund, and other require-
ments, payments, and deposits requared ~n connection wath the
Caty's Revenue Bonds (now or hereafter outstanding) which are pay-
able from Net Revenues of the Caty's Electrac Light and Power System
The C~ty shall deposat such surplus revenues and the ad valorem
taxes levaed pursuant to Sectaon 7 hereof to the credat of the
Interest and Sank~ng Fund created pursuant to Sectaon 7 ~n an
amount suffac~ent to pay the pr~ncapal of and anterest on saad
Certificates, and af surplus revenues are actually on deposat
· n the Interest and Sanklng Fund ~n advance of the tame when ad
valorem taxes are scheduled to be lev~ed for any year, then the
amount of taxes whach otherwase would have been required to be
levaed pursuant to Section 7 may be reduced to the extent and
by the amount of the surplus revenues then on deposit an the
Interest and Sank~ng Fund
Sectaon 9 That the Mayor of sa~d Caty ~s hereby author-
· zed to have control of saad Certificates and all necessary
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records and proceedangs pertaanang to saad Certafacates pend-
ing thear delavery and thear anvestagatlon, examination, and
approval by the Attorney General of the State of Texas, and
thear regastratlon by the Comptroller of Public Accounts of
the State of Texas Upon regastrataon of saad Certafacates,
said Comptroller of Publac Accounts (or a deputy designated
in wr~tang to act for saad Comptroller) shall manually s~gn
the Comptroller's Reg~strataon Certaflcate pranted and endors-
ed on each of sa~d Certafacatess, and the seal of sa~d Comptroller
shall be ampressed, or placed an facsamale, on each of sald
Certafacates
Sectaon 10 That the C~ty covenants to and wlth the pur-
chaser of ~he Certafacates that at w~ll make no use of the pro-
ceeds of the Certafacates at any tame throughout the term of
thas ~ssue of Cert~facates which, ~f such use had been reason-
ably expected on the date of delavery of the Certaflcates to
and_payraent for the Certlfacates by the purchaser, would have
caused the Cert~facates to be arbitrage bonds wath~n the mean-
lng of Sectaon 103(c) of the Internal Revenue Code of 1954, as
amended, or any regulataons or rulings pertaanlng thereto, and
by th~s covenant the Caty as obligated to comply w~th the re-
quirements of the aforesaad Section 103(c) and all applicable
and pertanent Department of the Treasury regulataons relatang
to arbatrage bonds The C~ty further covenants that the pro-
ceeds of the Cert~facates wall not otherwise be used darectly
or ~nd~rectly so as to cause all or any part of the Certafacates
to be or become arbatrage bonds w~th~n the meanang of the afore-
sa~d Sectaon 103(c), or any regulations or rulings pertaan~ng
thereto
Section 11 That ~t is hereby offaclally found and deter-
m~ned and declared that a case of emergency or urgent public
necessary exists which requires the holding of the meeting at
which thas Ordanance as passed, such emergency or urgent publac
necessary being that the proceeds from the sale of sa~d Certa-
facates are requared as soon as possible and without delay for
necessary and urgently needed publac ~mprovements, and that
sa~d meetang was open to the public, and public not~ce of the
t~me, place, and purpose of said meetang was given, all as re-
quired by Vernon's Ann C~v St Article 6252-17
Sectaon 12 That sa~d Certificates are hereby sold and
shall be delavered to F~rst Southwest Company for cash for
the par value thereof and any accrued ~nterest to date of de-
livery, and any such accrued ~nterest shall be deposited into
the Interest and S~nking Fund
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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 6th DAY OF NOVEMBER, 1979, at the Municipal
Building (City Hall), and the roll was called of the duly
constituted officers and members of sa~d City Council,
to-wit
Brooks Holt, City Secretary Bill Nash, Mayor
Roland Vela Dick Stewart
Ray Stephens Bud Henstey
and all of said persons were present, except the following
absentees ,
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 sa~d 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
AYESAll 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 sa~d 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 Clv St Article 6252-17
3 That the Mayor of said City has approved, and hereby
approves, the aforesaid Ordinance, that 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 constltute
the signing of the attached and following copy of said Ordinance
for all purposes
AN~the 6th day of ve 979
We'" Clty Secretary
(SEAL)