1979-016 ORDINANCE NO
ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WHEREAS, the bonds hereinafter authorized were lawfully
and favorably voted at elections duly held in said City on
DECEMBER 18, 1973, and FEBRUARY 28, 1978, and
WHEREAS, OUt of the bonds voted at the election held on
DECEMBER 18, 1973, for such purpose, the following previously
have been assued and delivered
$5,500,000 out of a voted total of $6,000,000 for the
purpose of constructing and lmprovang streets
in said City, and provadlng drainage and
flood control facilities in connectaon there-
with, represented by the Bonds of Series
1974, part of the Bonds of Seraes 1976, and
part of the Bonds of Series 1977, and
WHEREAS, none of the bonds voted at the election held on
FEBRUARY 28, 1978, has been authorized, issued, or delivered,
and
WHEREAS, it as necessary and advasable to authorize, issue,
and deliver another anstallment or series of saad bonds, and
WHEREAS, the bonds hereinafter authorized and designated
were voted and are to be Issued and delavered pursuant to
Vernon's Articles 823 and 1175
THE CObNCIL OF THE CITY OF DENTON HEREBY ORDAINS
Section 1 That the saad City's bonds are hereby author-
lzed to be issued in the aggregate prlncapal amount of
$4,500,000, FOR THE PURPOSE OF PROVIDING $500,000 FOR CON-
STRUCTING AND IMPROVING STREETS IN SAID CITY, AND PROVIDING
DRaiNAGE AND FLOOD CONTROL FACILITIES IN CONNECTION THEREWITH,
$1,,815,000 FOR THE ACQUISITION OF PROPERTY AND MAKING IMPROVE-
MENTS FOR PUBLIC PURPOSES, TO-WIT CONSTRUCTING AND IMPROVING
STREETS IN SAID CITY AND PROVIDING DRAINAGE FACILITIES IN CON-
NECTION THEREWITH, $775,000 FOR THE ACQUISITION OF PROPERTY AND
MAKING IMPROVEMENTS FOR PUBLIC PURPOSES, TO-WIT PROVIDING
ADDITIONAL CITY PUBLIC LIBRARY FACILITIES, $880,000 FOR THE
ACQUISITION OF PROPERTY AND MAKING IMPROVEMENTS FOR PUBLIC
PURPOSES, TO-WIT PROVIDING ADDITIONAL CITY POLICE FACILITIES,
AND $530,000 FOR THE ACQUISITION OF PROPERTY AND ~%KING IM-
PROUEMENTS FOR PUBLIC PURPOSES, TO-WIT PROVIDING ADDITIONAL
CITY FIRE FIGHTING FACILITIES
Section 2 That said bonds shall be designated as the
"CITY OF DENTON GENERAL OBLIGATION BONDS, SERIES 1979"
Section 3 That sa~d bonds shall be dated MARCH 15, 1979,
shall be ~n the denomination of $5,000 each, shall be numbered
consecutively from one upward, and shall mature seraally on the
maturity date, an each of the years, and in the amounts, re-
spectively, as set forth in the following schedule
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MATURITY DATE MARCH 15
YEARS AMOUNTS YEARS AMOUNTS
1981 $225,000 1991 $225,000
1982 225,000 1992 225,000
1983 225,000 1993 225000
1984 225,000 1994 225 000
1985 225,000 1995 225 000
1986 225,000 1996 225 000
, 1987 225,000 1997 225 000
1988 225,000 1998 225 000
1989 225,000 1999 225,000
1990 225,000 2000 225,000
Section 4 That the bonds scheduled to mature during the
years, respectively, set forth below shall bear interest at the
following rates per annum
maturities 1981, ?,~ % maturities 1991 ~2o %
maturltles 1982 ~,~ % maturities 1992
matur~tles 1983 ~ % maturities 1993
matur~tles 1984 ~_~ % maturltles 1994 ~%
matur~tles 1985 g.2D % maturities 1995 ~, ~ %
maturities 1986 g.~g % maturltles 1996 .~_%
maturities 1987 ~f_% maturities 1997 .~%
maturltles 1988 ,~ {$ % maturities 1998 ~.~__~%
maturities 1989 _~% maturities 1999 .~%
maturities 1990 ~ ~,% maturities 2000
Sald interest shall be evldenced by lnterest coupons whlch shall
appertaln to said bonds, and whlch shall be payable in the manner
provided and on the dates stated ~n the FORM OF BOND set forth
in thls Ordinance
Sectlon 5 That said bonds and ~nterest coupons shall be
lssued, shall be payable, may be redeemed prior to thelr schedul-
ed maturities, shall have the characterlst~cs, and shall be slgn-
ed and executed (and said bonds shall be sealed), all as provided,
and in the manner lndicated, in the FORM OF BOND set forth in thls
Ordinance
Sectlon 6 That the form of Bald bonds, lncludlng the form
of Registration Certlflcate of the Comptroller of Public Accounts
of the State of Texas to be prlnted and endorsed on each of said
bon~s, and the form of the aforesald lnterest coupons whlch shall
appertaln and be attached inltlally to each of Bald bonds, shall
be, respectlvely, substantlally as follows
pRM OF BOND
NO $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
GENERAL OBLIGATION BOND
SERIES 1979
ON MARCH 15, , THE CITY OF DENTON, Denton County, Texas,
hereby promlses to pay to bearer hereof the principal amount of
FIVE THOUSAND DOLLARS
and to pay interest thereon, from date hereof, at the rate of %
per ann~, evidenced by interest coupons payable MARCH 15, 198~,
and semiannually thereafter while this bond is outstanding
THE PRINCIPAL of this bond and the interest coupons apper-
ta&nlng hereto shall be payable to bearer, in lawful money of the
Un~ted States of America, without exchange or collection charges
to the bearer, upon presentation and surrender of this bond or
proper interest coupon, at the following, which shall constitute
and be defined as the "Paying Agent" for this Series of Bonds
CITIBANK, N A , NEW YORK, NEW YORK,
OR, AT THE OPTION OF THE BEARER, AT
FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS
THIS BOND is one of a Series dated as of MARCH 15, 1979,
authorized, Issued, and delivered in the principal amount of
$4,500,000 FOR THE PURPOSE OF PROVIDING $500,000 FOR CON-
STRUCTING AND IMPROVING STREETS IN SAID CITY, AND PROVIDING
DRAINAGE AND FLOOD CONTROL FACILITIES IN CONNECTION THEREWITH,
$1,815,000 FOR THE ACQUISITION OF PROPERTY AND MAKING IMPROVE-
MENTS FOR PUBLIC PURPOSES, TO-WIT CONSTRUCTING AND IMPROVING
STREETS IN SAID CITY AND PROVIDING DRAINAGE FACILITIES IN CON-
NECTION THEREWITH, $775,000 FOR THE ACQUISITION OF PROPERTY AND
MAKING IMPROVEMENTS FOR PUBLIC PURPOSES, TO-WIT PROVIDING
ADDITIONAL CITY PUBLIC LIBRARY FACILITIES, $880,000 FOR THE
ACQUISITION OF PROPERTY AND MAKING IMPROVEMENTS FOR PUBLIC
PURPOSES, TO-WIT PROVIDING ADDITIONAL CITY POLICE FACILITIES,
AND $530,000 FOR THE ACQUISITION OF PROPERTY AND MAKING IM-
PROVEMENTS FOR PUBLIC PURPOSES, TO-WIT PROVIDING ADDITIONAL
CITY FIRE FIGHTING FACILITIES
ON MARCH 15, 1992,
or on any Interest payment date thereafter, any outstanding bonds
of this Series may be redeemed prior to their scheduled maturi-
ties, at the option of said City, in whole, or in part, for the
principal amount thereof and accrued interest thereon to the date
fixed for redemption At least thirty days prior to the date
fixed for any such redemption said City shall cause a written
notice of such redemption to be published at least once in a fi-
nancial publication publlshed in the City of New York, New York
By the date fixed for any such redemption due provision shall be
made with the "Paying Agent" for the payment of the principal
amount of the bonds which are to be so redeemed and accrued in-
terest thereon to the date fixed for redemption If such writ-
ten notice of redemption is published and if due provision for
such payment is made, all as provided above, the bonds 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 re-
garded 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
bond has been duly and validly voted, authorized, issued, and de-
livered, that all acts, conditions, and th~ngs required or proper
to be performed, exist, and be done precedent to or in the voting,
authorization, issuance, and delivery of this bond have been per-
formed, existed, and been done in accordance with law, that this
bond is a general obligation of sa~d City, issued on the full
faith and credit thereof, and that annual ad valorem taxes suffi-
cient to provide for the payment of the interest on and principal
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of thls bond, as such anterest comes due and such principal ma-
tures, have been levied and ordered to be levied against all tax-
able property an said City, and have been pledged irrevocably for
such payment, within the limit prescrabed by law
IN WITNESS WHEREOF, this bond and the interest coupons apper-
taining hereto have been signed with the facsamale signature of
the Mayor of saad City and countersigned with the facslmale signa-
ture of the City Secretary of saad City, and the offaclal seal of
saad City has been duly impressed, or placed in facsimile, on this
bond
XXXXXXXX XXXXXXXX
City Secretary Mayor
FORM OF REGISTRATION CERTIFICATE
COMPTROLLER'S REGISTRATION CERTIFICATE REGISTER NO
I hereby certify that this bond has been examaned, certl-
faed as to validity, and approved by the Attorney General of
the State of Texas, and that thas bond has been registered by
the Comptroller of Public Accounts of the State of Texas
Wltness my signature and seal this
XXXXXXXX
Comptroller of Public Acco~'nts of
the State of Texas
FORM OF INTEREST COUPON
NO
ON 15, ,
THE CITY OF DENTON, in Denton County, State of Texas,
promises to pay to bearer the amount shown on this anterest
ceupon, an lawful money of the United States of Ameraca, wath-
out exchange or collectaon charges to the bearer, unless due
provlsaon has been made for the redemptaon prior to scheduled
maturity of the bond to which this Interest coupon appertaans,
upon presentatIon and surrender of thas interest coupon, at
CITIBANK, N A , NEW YORK, NEW YORK,
OR, AT THE OPTION OF THE BEARER, AT
FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS,
sald amount beang anterest coming due that day on the bond,
bearlng the number herelnafter designated, of that issue of
CITY OF DENTON GENERAL OBLIGATION BONDS, SERIES 1979, DATED
MARCH 15, 1979
Bond No
xxxxxxxx xxxxxxxx
City Secretary Mayor
Section 7 That a special "Interest and Sinking Fund" is
hereby created solely for the benefit of saad bonds, and said
Interest and Slnklng Fund shall be established and maintained
by said City at an official deposatory bank of said Clty Sa~d
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 paylng the interest on and prlncapal of said bonds All ad
valorem taxes levaed and collected for and on account of sa~d
bonds shall be deposated, as collected, to the credit of said
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Interest and Slnklng Fund During each year while any of said
bonds or lnterest 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 suffi-
cient to raise and produce the money required to pay th interest
on said bonds as such interest comes due, and to provide and
maintaan a sinking fund adequate to pay the principal of such
bonds as such principal matures (but never less than 2% of the
original principal amount of said bonds as a sinking fund each
year), and said tax shall be based on the latest approved tax
rolls of saad City, wath full allowance being made for tax de-
linquencies 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 saad City for each year
while any of said bonds or interest coupons appertaining thereto
are outstanding and unpaid, and said tax shall be assessed and
collected each such year and deposited to the credit of the afore-
said Interest and Sinking Fund Said ad valorem taxes sufficient
to provade for the payment of the interest on and principal of
said bonds, as such Interest comes due and such principal matures,
are hereby pledged arrevocably for such payment, wathln the limit
prescribed by law
Section 8 That the Mayor of said City as hereby authorazed
to have control of said bonds and all necessary records and pro-
ceedlngs pertaining to said bonds pending their delivery and
their anvestlgatlon, 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 bonds, saad Comptroller of Public Accounts
(or a deputy designated an writing to act for saad Comptroller)
shall manually sagn the Comptroller's Regastratlon Certificate
printed and endorsed on each of said bonds, and the seal of saad
Comptroller shall be impressed, or placed in facsamlle, on each
of said bonds
Section 9 That the City covenants to and with the pur-
chaser of the bonds that it w~ll make no use of the proceeds
of the bonds at any time throughout the term of this issue of
bonds which, If such use had been reasonably expected on the
date of delavery of the bonds to and payment for the bonds by
the purchasers, would have caused the bonds to be arbitrage bonds
wathan the meanang of Section 103(c) of the Internal Revenue Code
of 1954, as amended, or any regulataons or rulings pertaanang
thereto, and by this covenant the City is obligated to comply
with the requirements of the aforesaid Section 103(c) and all
applicable and pertinent Department of the Treasury regulations
relating to arbitrage bonds The Caty further covenants that the
proceeds of the bonds will not otherwise be used directly or ln-
darectly so as to cause all or any part of the bonds to be or be-
come arbatrage bonds wathln the meaning of the aforesaid Sectaon
103(c), or any regulataons or rulangs pertaanlng thereto
Section 10 That the City Councal offaclally fends, de-
termines, and declares that saad bonds have been duly advertas-
ed for sale as required by the Home Rule Charter of said City,
that sealed bads have been received at a public sale of said
bonds held on March 6, 1979, that all of saad bonds are hereby
sold and shall b.e delivered to % syndicate m~naged or headed
being the be"st bidder at 'said public dale, for the principal
amount of said bonds, and accrued interest thereon to the date
of delivery, plus a premaum of $ -- ~--
-5-
Section 11 It ~s further found and determined that a
not~ce of sale for sa~d bonds as required by the Home Rule
Charter of sald C~ty was duly published on February 1, 1979,
in The Bond Buyer, New York, New York, which lsa natlonal
publication regularly and primarily carrying f~nanc~al news and
municipal bond sale notices, and on January 31, 1979, ~n the
Denton Record-Chronicle, which has been designated as the offi-
cial newspaper of the C~ty of Denton The form and substance
of sa~d Offlclal Not~ce of Sale, and the aforesaid publlcat~ons
thereof, are hereby approved and ratified ~n all respects by the
City Council
Section 12 That ~t ~s hereby officially found, determin-
ed, and declared that sa~d bonds have been sold at public sale
to the b~dder offering the lowest lnterest cost, after recelv-
lng sealed b~ds pursuant to an Official Not~ce of Sale and
Official Statement dated February 15, 1979, prepared and d~s-
tr~buted in connection wlth the sale of sa~d bonds Sa~d Off~-
clal Not~ce of Sale and Official Statement have been and are
hereby approved by the City Council It ~s further officially
found, determined, and declared that the statements and repre-
sentations contained in said Offlc~al Not~ce of Sale and Offi-
cial Statement are true and correct ~n all mater~al respects,
to the best knowledge and belief of the C~ty Council
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CERTIFICATE FOR
ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
We, the undersagned offacers of saad Caty, hereby certafy
as follows
1 The Caty Council of saad City convened ~n
REGULAR MEETING ON THE 6TH DAY OF MARCH, 1979,
at the Munacapal Bu~ldang (Caty Hall), ana the roll was called
of the duly constatuted officers and members of sa~d City
Council, to-war
Brooks Holt, Caty Secretary Joe M~tchell, Mayor
Ball Nash Mary Claude Gay, Mayor Pro Tem
Elanor Hughes D~ck Stewart
and all of saad persons were present, except the followang
absentees ~ ,
thus constatuting a qUorum whereupon, among other business,
the followang was transacted at saad Meeting a wratten
ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS
was duly ~ntroduced for the consideration of saad C~ty Council
and read an full It was then duly moved and seconded that
sa~d Ordinance be passed, and, after due d~scuss~on, sa~d mo-
tion, carrying w~th at the passage of saad Ordanance, prevaal-
ed and carried by the following vote
AYESAil members of saad C~ty Councal
shown present above voted "Aye"
NOESNone
2 That a true, full, and correct copy of the aforesaid
Ordanance passed at the Meetang described an the above and fore-
going paragraph as attached to and follows thas Certaf~cate,
that saad Ordanance has been duly recorded ~n saad Czty Counczl's
manures of sa~d Meetang, that the above and foregoing paragraph
Ks a true, full, and correct excerpt from saad C~ty Councai's
mznutes of saad Meetang pertaanang to the passage of saad Ordi-
nance, that the persons named an the above and foregoang para-
graph are the duly chosen, qualzfzed, and actzng offacers and
members of saad Czty Counczl as ~ndacatea therean, that each of
the offacers and members of said Caty Councal was duly and suffz-
caently notifzed officially and personally, an advance, of the
tame, place, and purpose of the aforesaid Meetzng, and that saad
Ordinance would be zntroduced and considered for passage at sa~d
Meeting, and each of saad offacers and members consented, zn ad-
vance, to the holdang of saad Meetang for such purpose, and that
sa~d Meeting was open to the publac, and public not~ce of the
t~e, place, and purpose of sazd meeting was gaven, all as re-
quzred by Vernon's Ann Czv St Artzcle 6252-17
3 That the Mayor of sazd Czty has approved, and hereby
approves, the aforesazd Ordinance, that the Mayor and the C~ty
Secretary of said C~ty have duly sagned saad Ordanance, and
that the Mayor and the Caty Secretary of s&ad Caty hereby de-
clare that thear sagn~ng of thzs Certafzcate shall constitute
the sagnang of the attached and followzng copy of sazd Ordinance
for all purposes
~~~h day of Ma~ _~_---
_~,/_- Mayor
(SEAL) ...................
We, the undersagned, beang respectzvely the Czty Attorney
and the Bond Attorneys of the Caty of Denton, Texas, hereby cer-
tzfy that we prepared and approved as to legalaty the attached
and following Ordanance prao~ to--passage a~.$foresa~d
Caty Attqrney
Bo~d~-Attorneys -