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1979-015 ORDINANCE NO 79- /~ ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM REVENUE BONDS THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WHEREAS, the bonds hereanafter authorazed were lawfully and favorably voted at an electaon duly held in saad City on MAY 16, 1972, and WHEREAS, out of the bonds voted at saad electaon, the followang previously have been assued and delavered $3,475,000 out of a voted total of $5,275,000, for the purpose of improving and extendang the Caty's Waterworks System, represented by part of the Seraes 1972 Bonds, part of the Seraes 1974 Bonds, and part of the Ser~es 1977 Bonds, and $ 525,000 out of a voted total of $5,725,000, for the purpose of ~mprov~ng and extendang the C~ty's Sewer System, represented by part of the Ser~es 1972 Bonds, part of the Series 1974 Bonds, and part of the Seraes 1977 Bonds, and WHEREAS, the bonds hereanafter authorazed and desagnated were voted and are to be assued and delivered pursuant to Vernon's Artacles 1111 through 1118 THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS Sectaon 1 That the saad Caty's bonds are hereby author- · zed to be assued an the aggregate prancapal amount of $4,000,000 for the purpose of provadang $1,000,000 FOR IMPROVING AND EX- TENDING THE CITY'S WATERWORKS SYSTEM, and provadang $3,000,000 FOR IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM Sectaon 2 That saad bonds shall be designated as the "CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 197,9" Sectaon 3 That saad bonds shall be dated MARCH 15, 1979, sh~ll be in the denom~nataon of $5,000 each, shall be number- ed ¢onsecutavely from one upward, and shall mature seraally on the maturaty date, an each of the years, and an the amounts, respectavely, as set forth ~n the followang schedule MATURITY DATE JULY 15 ~ YEARS AMOUNTS YEARS AMOUNTS 1981 $100,000 1991 $225,000 1982 100,000 1992 225,000 1983 100,000 1993 225,000 1984 100,000 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 -1- 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 ~.7~ % maturities 1991, $ ~ % maturities 1982 ~ ~g % maturities 1992, 3'Fm % maturities 1983 ~_~% maturities 1993, -~,F~ % maturities 1984 A.75 % maturities 1994, ~F~ % maturities 1985 ~]'75% maturities 1995, ~,~ % maturities 1986 & 7~% maturities 1996,~.&o % maturities 1987 ~.7C % maturities 1997, ?-~--% maturities 1988 ~j~_% maturities 1998, ~.75 % maturities 1989 ~% maturities 1999, _~_% maturities 1990 ~- ~ % maturities 2000, ~?~ % Said interest shall be evidenced by interest coupons which shall appertain to said bonds, and which shall be payable in the manner provided and on the dates stated in the FORM OF BOND set forth in this Ordinance Section 5 That said bonds and interest coupons shall be issued, shall be payable, may be redeemed prior to their schedul- ed maturities, shall have the characteristics, and shall be sign- ed and executed (and said bonds shall be sealed), all as provid- ed, and in the manner Indicated, in the FORM OF BOND set forth in this Ordinance Section 6 That the form of said bonds, including the forI~ of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of said bonds, and the form of the aforesaid interest cou- pons which shall appertain and be attached initially to each of said bonds, shall be, respectively, substantially as follows FORM OF BOND NO $5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BOND SERIES 1979 ON JULY 15, , THE CITY OF DENTON, in Denton County, Texas, hereby promises 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 annu/n, evidenced by ~nterest coupons payable JULY 15, ~ and semiannually thereafter while this bond is outstand- THE PRINCIPAL of this bond and the interest coupons apper- taining 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 bond or proper interest coupon, at the following, which shall constitute and be defined as the "Paying Agent" for this Series of Bonds -2- CITIBANK, N A , NEW YORK, NEW YORK, OR, AT THE OPTION OF THE BEARER, AT FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS THIS BOND lS one of a Series dated as of MARCH 15, 1979, authorized, issued, and delivered in the principal amount of $4,000,000 for the purpose of providing $1,000,000 FOR IMPROV- ING AND EXTENDING THE CITY'S WATERWORKS SYSTEM, and providing $3,000,000 FOR IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM ON JULY 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 notlce of such redemptlon to be published at least once in a fl- nanclal publlcatlon publlshed in the City of New York, New York By the date fixed for any such redemption due provision shall be made with the "Paylng Agent" for the payment of the prlnclpal amount of the bonds which are to be so redeemed and accrued ~n- terest thereon to the date fixed for redemption If such writ- ten notice of redemption is published and ~f 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 thelr 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 and covenanted that this bond has been duly and valldly authorized, lssued, and delivered, that all acts, condltions, and things requlred or proper to be performed, exist, and be done precedent to or ~n the authorization, issuance, and delivery of this bond have been performed, exlsted, and been done an accordance with law, that th~s bond is a special obligation, and that the prlnclpal of and ~nterest on this bond, together with other revenue bonds of sald C~ty, are payable from, and secured by a flrst llen on and pledge of, the Net Revenues of said City's Waterworks and Sewer System SAID CITY has reserved the right, subject to the restrictions stated, and adopted by reference, in the Ordinance authorizing this Series of bonds, to issue additional parity revenue bonds which also may be made payable from, and secured by a first l~en on and pledge of, the aforesaid Net Revenues THE HOLDER HEREOF shall never have the right to demand pay- ment of th~s obligation out of any funds raised or to be raised by taxation IN WITNESS WHEREOF, this bond and the interest coupons apper- taining hereto have been signed with the facsimile s~gnature of the Mayor of said City and countersigned with the facsimile signa- ture of the City Secretary of sa~d City, and the official seal of said City has been duly lmpressed, or placed ~n facsimile, on this bond xxxxxxxx xxxxxxxx City Secretary Mayor -3- FORM OF REGISTRATION CERTIFICATE COMPTROLLER'S REGISTRATION CERTIFICATE REGISTER NO I hereby certify that this bond has been examined, certi- fied as to validity, and approved by the Attorney General of the State of Texas, and that this bond has been registered by the Comptroller of Public Accounts of the State of Texas Witness my signature and seal this XXXXXXXX Comptroller of PUbl~'c Accounts of the State of Texas FORM OF INTEREST COUPON NO $ ON 15, , THE CITY OF DENTON, in the County of Denton, State of Texas, promises to pay to bearer the amount shown on this interest coupon, in lawful money of the United States of America, with- out exchange or collection charges to the bearer, unless due provision has been made for the redemption prior to scheduled maturity of the bond to which this interest coupon appertains, upon presentation and surrender of this 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 being interest coming due that day on the bond, bearing the number hereinafter designated, of that issue of CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1979, DATED MARCH 15, 1979 The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation Bond No XXXXXXXX XXXXXXXX City Secretary Mayor Section 7 (a) That the term "Outstanding Bonds," as herein- after used in this Ordinance, shall mean all of said City's pres- ently outstanding bonds which are payable from, and secured by a first lien on and pledge of, the Net Revenues of said City's Waterworks and Sewer System (b) That the bonds authorized hereby are parity "Additional Bonds" as defined in the ordinance passed on July 12, 1960, authorizing the issuance, sale, and delivery of said City's Water and Sewer System Revenue Bonds, Series 1960 (c) That Sections 9 through 25 of said ordinance are hereby adopted by reference and shall be applicable to the bonds au- thorized to be issued by this Ordinance for all purposes, except to the extent hereinafter specifically modified and supplemented The bonds authorized to be issued by this Ordinance and the Out- standing Bonds are and shall be on a parity and of equal dignity in all respects, and are and shall be payable from, and secured by a first lien on and pledge of, the Net Revenues of said City's Waterworks and Sewer System -4- -/5 Section 8 That, in addition to all other amounts requir- ed by the ordinances, respectively, authorizing the Outstanding Bonds, there shall be deposited into the Interest and Sinking Fund (created for the benefit of said Outstanding Bonds and all Additional Bonds), from the Net Revenues of the System, the following (a) such amounts, in equal monthly installments, made on or before the last day of each month hereafter, as will be sufficient to pay the interest scheduled to come due on said Series 1979 Bonds on the next interest payment date, and (b) such amounts, in equal monthly installments, made on or before the last day of each month hereafter, commencing in July, 1980, as will be sufficient to pay the next maturing prin- cipal of sald Series 1979 Bonds Section 9 That the Reserve Fund heretofore created for the benefit of the Outstanding Bonds and all Additional Bonds now contains money and investments not less than the amount of $522,000 in market value On or before the last day of each month hereafter there shall be deposited into the Reserve Fund such amounts, in equal monthly installments, as will cause the Reserve Fund to contain, within five years after the date of the Series 1979 Bonds, an amount of money and investments equal in market value to the average annual principal and interest re- quirements on the Outstanding Bonds and the Series 1979 Bonds (the "Reserve Required Amount") Thereafter, no additional de- posits shall be made Into the Reserve Fund as long as the money and investments therein are equal to the Reserve Required Amount, but If and whenever the Reserve Fund is reduced below the Reserve Required Amount, a monthly deposit shall be made, on or before the last day of each month thereafter, into the Reserve Fund from Net Revenues Of the System (after the required deposits have been made into the Interest and Sinking Fund), in an amount equal to 1/60th of the Reserve Required Amount, until such time as the Reserve Fund has been restored to the Reserve Required Amount, and the City covenants to keep and maintain the Reserve Requlrea Amount in the Reserve Fund in the manner described above The Reserve Fund shall be maintained, used, and may be invested, for the benefit of the Bonds and all Additional Bonds, in accordance with the procedures, as herein modified and supplemented, set forth in the ordinances, respectively, authorizing the Outstand- ing Bonds It is provided, however, that if and whenever, due to investment income or otherwise, the Reserve Fund contains an amount in excess of the Reserve Required Amount, such excess shall be deposited Immediately to the credit of the Revenue Fund Sectlon 10 That the bonds authorized by this Ordinance are and shall be special obligations ot said City, and the holder or holders thereof shall never have the right to demand payment of said obligations out of any funds raised or to be raised by taxation Section 11 That the Mayor of said City Ks hereby author- lzed to have control of said bonds and all necessary records and proceedings pertaining to said bonds pending 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 bonds, said Comptroller of Public Accounts (or a deputy designated an writing to act for said Comgtroller) shall manually sign the Comptroller's Registration -5- 74 -~ 5 Certificate printed and endorsed on each of said bonds, and the seal of said Comptroller shall be impressed, or placed an facsimile, on each of said bonds Section 12 That the City covenants to and with the pur- chaser of the bonds that it will make no use of the proceeds of the bonds at any time throughout the term of th~s issue of bonds which, if such use had been reasonably expected on the date of delivery of the bonds to and payment for the bonds by the purchasers, would have caused the bonds to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations or rulings pertalnlng 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 City further covenants that the proceeds of the bonds wall not otherwise be used directly or in- directly so as to cause all or any part of the bonds to be or be- come arbitrage bonds within the meaning of the aforesaid Section 103(c), or any regulations or rulings pertaining thereto Section 13 That it is hereby officially found and deter- mined 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 tke sale of said bonds 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 not~ce of the t~me, place, and purpose of sa~d meeting was given, all as required by Vernon's Ann C~v St Article 6252-17 Section 14 That the City Council officially f~nds, deter- m~nes, and declares that sa~d bonds have been duly advertised for sale as required by the Home Rule Charter of said City, that sealed bids have been received at a public sale of said bonds held on March 6, 1979, that all of sa~d bonds are hereby sold and s. hall be delivered to a syndicate managed or he~aded being the Best bidder at ~aid public sale,'for the prIncipal amount of said bonds, and accrued interest thereon to the date of delivery, plus a premium of $ Section 15 It is further found and determined that the Official Not~ce of Sale for said bonds was duly published on February 1, 1979 in The Bond Buyer, New York, New York, which Ks a national publication regularly and primarily carrying nanclal news and municipal bond sale notices, and on January 31, 1979, in the Denton Record-Chronicle, which has been designated as the offlclal newspaper of the City of Denton The form and substance of said Official Not~ce of Sale, and the aforesaid publlcatlons thereof, are hereby approved and ratified in all respects by the City Council Section 16 That it Ks hereby officially found, determin- ed, and declared that said bonds have been sold at public sale to the bidder offering the lowest lntelest cost, after receiving sealed bids pursuant to an Official Notice of Sale and Official Statement dated February 15, 1979, prepared and distributed an connection with the sale of said bonds Sa~d Official Not~ce of Sale and Official Statement have been and are hereby approved by the City Council It is further officially found, determined, and declared that the statements and representations contained in said Official Notice of Sale and Official Statement are true and correct in all materlal respects, to the best knowledge and belief of the City Council CERTIFICATE FOR ORDINANCE AUTHORIZING ThE ISSUANCE OF WATER AND SEWER SYSTEM REVENUE BONDS 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 MARCH, 1979, at the Municipal Building (City Hall), and the roll was called of the duly constituted officers and members of said City Council, to-wit Brooks Holt, City Secretary Joe Mitchell, Mayor Bill Nash Mary Claude Gay, Mayor Pro Tem Ellnor Hughes Dick Stewart and all of saldpersons were present, except the following absentees .f~..~_.~ , thus constltUfing a q~orum Whereupon, among other business, the following was transacted at said Meeting a written ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM REVENUE BONDS 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 AYESAil members of said City Council shown present above voted "Aye" NOESNone 2 That a true, full, and correct copy of the aforesaid Ordinance passed at the Meeting described in the above and fore- golng 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 sa~d Ordl- 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 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 constitute the signing of the attached and following copy of said Ordinance for all purposes SIGNED AND SEALED the 6th day of March, 1979 We, the undersigned, being respectively the City Attorney and the Bond Attorneys of the City of Denton, Texas, hereby cer- tify that we prepared and approved as to legality the attached and following Ordinance prlor,t~s passage a~ aforesaid ~ - Clt~ At~. ney