1979-077 O INANCE NO 79-?7
ORDINANCE AUTHORIZING THE ISSUANCE OF CERTIFICATES OF OBLIGATION
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WHEREAS, Vernon's Artacle 2368a 1 permits the Czty to
lssue and sell for cash the Certafacates of Oblzgatzon here-
anafter authormzed, and
WHEREAS, the Czty has duly caused not&ce of ats zntentaon
to zssue the Certafacates of Oblagatzon hereanafter authorzzed
to be published at the t~mes and an the manner required by
Vernon's Arta¢le 2368a 1, and no petztaon has been faled pro-
testing the assuance thereof
THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
Sectaon 1 That the sazd C~ty's Certafacates of Oblaga-
taon (hereinafter sometimes called "Certzfacates") are hereby
authorazed to be assued zn the aggregate prancapal amount of
$1710,000, FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE
CITY'S CONTRACTUAL OBLIGATIONS INCURRED PURSUANT TO CONTRACTS
FOR IMPROVEMENTS TO THE CITY'S MUNICIPAL AIRPORT, INCLUDING
THE PAVING AND REPAVING OF RUNWAYS, AND PAYING ALL OR A POR-
TION OF THE CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL SERVICES
OF ENGINEERING, ARCHITECTS, ATTORNEYS, AND FINANCIAL ADVISORS
IN CONNECTION WITH SUCH AIRPORT IMPROVEMENTS AND CERTIFICATES
OF OBLIGATION
Sectaon 2 That saad Cert~facates shall be desagnated
as the CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES
1979
Section 3 That saad Certafacates shall be dated
OCTOBER 1, 1979, shall be an the denomanataon of $5,000 each,
shall be numbered consecutively from one upward, and shall
mature serzally on the maturaty date, an each of the years,
and in the amounts, respectzvely, as set forth an the follow-
· ng schedule
MATURITY DATES JANUARY 1
YEARS AMOUNTS
1990 $10,000
1991 20,000
1992 20,000
1993 20,000
1994 25,000
1995 25,000
1996 25,000
1997 25,000
Section 4 That saad Certafacates shall bear anterest
at the rate of 6 75 % per annum, evidenced by anterest coupons
whzch shall appertain to saad Cert~facates, and whzch shall
be payable an the manner provaded and on the dates stated an
the FORM OF CERTIFICATE set forth an thas Ordanance
Sectaon 5 That saad Certafacates and znterest coupons
shall be assued, shall be payable, may be redeemed praor to
their scheduled maturaties, shall have the characterastacs,
and shall be sagned and executed (and saad Cert~facates shall
be sealed), all as provzded, and in the manner andacated, an
the FORM OF CERTIFICATE set forth an thas Ordznance
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Section 6 That the form of sa~d Certificates, ~nclud-
lng the form of Reg~st:at~on 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 ~nterest coupons which shall appertain and be at-
tached · nit~ally to each of sa~d Certificates, shall be,
respectively, substantially as follows
FOP~ OF CERTIFICATE
NO $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
CERTIFICATE OF OBLIGATION
SERIES 1979
ON JANUARY 1, 19__, THE CITY OF DENTON, ~n DENTON COUNTY,
TEXAS, hereby promises to pay to bearer the principal amount of
FIVE THOUSAND DOLLARS
and to pay ~nterest thereon, from date hereof, at the rate of
----- per annum, evidenced by ~nterest coupons payable
JANUARY 1, 1981, and semiannually thereafter wh~le th~s Certi-
ficate · s outstanding
THE PRINCIPAL of th~s Certificate and the ~nterest coupons
appertaining hereto shall be payable to bearer, ~n lawful money
of the Un, ted States of America, w~thout exchange or collection
charges to the bearer, upon presentation and surrender of this
Certificate or proper ~nterest coupon, at the following, which
shall constitute and be defined as the "Paying Agent" for thls
Series of Certificates
FIRST STATE BANK,
DENTON, TEXAS
THIS CERTIFICATE is one of a Serles dated as of OCTOBER 1,
1979, authorized, ~ssued, and delivered ~n the principal amount
of $170,000 FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE
CITY'S CONTRACTUAL OBLIGATIONS INCURRED PURSUANT TO CONTRACTS
FOR IMPROVEMENTS TO THE CITY'S MUNICIPAL AIRPORT, INCLUDING
THE PAYING AND REPAVING OF RUNWAYS, AND PAYING ALL OR A POR-
TION OF THE CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL SERVICES
OF ENGINEERING, ARCHITECTS, ATTORNEYS, AND FINANCIAL ADVISORS
IN CONNECTION WITH SUCH AIRPORT IMPROVEMENTS AND CERTIFICATES
OF OBLIGATION
THE OUTSTANDING CERTIFICATES of thls Ser~es may be redeem-
ed prior to their scheduled maturities, at the option of sa~d
C~ty, ~n whole, or ~n part, on any date, for the principal
amount thereof and accrued ~nterest thereon to the date f~xed
for redemtp~on On, or prior to, the date f~xed for any such
redemption sa~d C~ty shall cause a written not~ce of such re-
demption to be g~ven to the "Paylng Agent" By the date f~xed
for any such redemption due provision shall be made w~th the
"Paying Agent" for the payment of the prlnc~pal amount of the
Cert~f~oates which are to be so redeemed and accrued ~nterest
thereon to the date f~xed for redemption If such written no-
t~ce of redemption ~s g~ven and if due provision for such pay-
ment · s made, all as provided above, the Certificates which
are to be so redeemed thereby automatically shall be redeemed
prlor to their scheduled matur~tles, and they shall not bear
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~ /
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
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 addition-
ally secured by and payable from the surplus revenues derived
by the City from the ownership and operation of the City's
Municipal Airport remaining after payment of all operation and
maintenance expenses thereof, and all debt service, reserve,
and other requirements in connection with any revenue bonds
hereafter issued by the City to be payable from Net Revenues
of the City's Municipal Airport
IN WITNESS WHEREOF, this Certificate and the interest
coupons appertaining hereto have been signed with the facsimile
signature of the Mayor of said C1ty and countersigned with the
facsimile signature of the City Secretary of sa~d City, ahd the
official seal of said City has been duly ~mpressed, or placed
in facsimile, on this Certificate
xxxxxxxx xxxxxxx
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 th~s Certi-
ficate of Obligation has been registered by the Comptroller
of Public Accounts of the State of Texas
Witness my signature and seal thls
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 Certificate to which this interest coupon
appertains, upon presentation and surrender of this interest
coupon, at
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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
1979, DATED OCTOBER 1, 1979 Certificate No
xxxxxxxxx xxxxxxx
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 funds and accounts of said City, and shall be
used only for paying the Interest on and principal of said Cer-
tificates Ail 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
bod~ 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 Municipal
Airport remaining after payment of all operation and mainten-
ance expenses thereof, and all debt service reserve, and other
requirements in connection with any revenue bonds hereafter
issued by the City to be payable from Net Revenues of the City's
Municipal Airport The City shall deposit such surplus rev-
enues 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 prln-
clPal of and interest on said Certificates, and if surplus
revenues are actually on deposit in the Interest and Sinking
Fund in advance of the time when ad valorem taxes are scheduled
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 Sink-
lng Fund
Section 9 That the Mayor of said City is hereby author-
lzed to have control of said Certificates and all necessary
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~g 77
records and proceedings pertaining to said Certificates pend-
lnglthelr delivery and their investigation, examination, and
approval by the Attorney General of the State of Texas, and
thelr 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 Certlflcatess, 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
an~ pa!anent for the Certificates by the purchaser, would have
caused the Certificates to be arbitrage bonds within the mean-
lng 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 Clv St Article 6252-17
Section 12 That said Certificates are hereby sold and
shall be delivered to First Southwest Company for cash for
the par value thereof and any accrued interest to date of de-
livery, and any such accrued interest shall be deposited into
the Interest and Sinking Fund
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HERE PASTE THE NOTICE BY
PUBLICATION CUT FROM PAPER -
1N THF MATTI; R ()!~ THE
AFFIDAVIT OF I'UBi 1SHI~ R TO
PUBLICATION Ok I EGAI NOTI( E
F;h d th~
19__
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 25TH DAY OF SEPTEMBER, 1979,
at the Municipal Building (City Hall), and the roll was called
of ~he 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 person~.were present, except the following
absentees /~A~ , ,
thus constituting a q~6ru~ WhWreupon, 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~Ail 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 offlcers and
members of sa~d City Council as ~ndlcated 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
sa~d 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 C1ty
Secretary of said City have duly signed sa~d 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 sa~d Ordinance
for all purposes
25th day of September, 1979
~/ - City Secretary
(SEAL)