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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 -1- 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 -4- 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 -5- 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)