1978-009 ORDINANCE NO 78-9
ORDINANCE AUTHORIZING THE ISSSANCE OF CERTIFICATES OF OBLIGATION
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WHEREAS, Vernon's Article 2368a 1 permats the Caty to
assue and sell for cash the Cert~facates of Oblagataon here-
anafter authorazed, and
WHEREAS, the Caty has duly caused notace of ars ~ntent~on
to assue the Cert~facates of Oblagat~on hereinafter authorazed
to be publashed at the tames and an the manner requared by
Vernon's Article 2368a 1, and no petataon has been faled pro-
testang the assuance thereof
THEReFORe, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
Section 1 That the saad Caty's Cert~facates of Oblaga-
taon (hereanafter sometames called "Certafacates") are hereby
authorazed to be ~ssued an the aggregate prancapal amount of
$125,000, FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE
CITY'S CONTRACTUAL OBLIGATIONS INCURRED PURSUANT TO CONTRACTS
FOR OFF-STREET PARKING FACILITIES, TO BE AVAILABLE TO THE
GENERAL PUBLIC, ON LAND OWNED BY THE CITY AND NOW KNOWN AS
"WILLIAMS SQUARE" (FORMERLY "TRADE SQUARE"), AND PAYING ALL
OR A PORTION OF THE CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL
SERVICES OF ENGINEERING, ARCHITECTS, ATTORNEYS, AND FINANCIAL
ADVISORS IN CONNECTION WITH SUCH OFF-STREET PARKING FACILITIES
AND CERTIFICATES OF OBLIGATION
Sectaon 2 That saad Cert~facates shall be desagnated
as the CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES
1978
Section 3 That saad Certafacates shall be dated MARCH 1,
1978, shall be an the denomanataon of $5,000 each, shall be
numbered consecutavely from one upward, and shall mature sera-
ally on the maturaty date, an each of the years, and an the
amounts, respectively, as set forth an the followang schedule
MATURITY DATE MARCH 1
YEARS AMOUNTS
1980 $ 5 000
1981 5 000
1982 10 000
1983 10 000
1984 10 000
1985 10 000
1986 10 000
1987 10 000
1988 15 000
1989 15 000
1990 25 000
Section 4 That saad Cert~facates shall bear anterest
at the rate of 5 50% per annum, evadenced by anterest coupons
which shall appertalr to saad bonds, and which shall be pay-
able an the manner provaded and on the dates stated an the
FORM OF CERTIFICATE set forth an thas Ordanance
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Section 5 That saad Certafacates and anterest coupons
shall be assued, shall be parable, may be redeemed praor to
thear scheduled maturat~es, shall have the characterastacs,
and shall be s~gned and executed (and saad Certifacates shall
be sealed), all as provaded, and an the manner andacated, an
the FORM OF CERTIFICATE set forth an thas Ordanance
Sectaon 6 That the form of saad Certificates, ancludlng
the form of Regastrataon Certafacate of the Comptroller of
Publac Accounts of the State of Texas to be pranted and endors-
ed on each of saad Certificates, and the form of the aforesaad
anterest coupons whach shall appertaan and be attached anataally
to each of saad Certafacates, shall be, respectavely, substan-
taally 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 1978
ON MARCH 1, 19 , THE CITY OF DENTON, an DENTON COUNTY,
TEXAS, hereby promases to pay to bearer the pr~ncapal amount of
FIVE THObSAND DOLLARS
and to pay ~nterest thereon, from date hereof, at the rate of
5 50% per annum, evidenced by anterest coupons payable MARCH 1,
1979, and semaannually thereafter wh~le th~s Certificate as
outstanding
THE PRINCIPAL of thas Certafacate and the ~nterest coupons
appertainang hereto shall be payable to bearer, ~n lawful money
of the Un~ted States of Ameraca, wathout exchange or collectaon
charges to the bearer, upon presentataon and surrender of th~s
Certaf~cate or proper ~nterest coupon, at the following, whach
shall constatute and be defaned as the "Paying Agent" for thas
Ser~es of Certafacates
FIRST STATE BANK,
DENTON, TEXAS
THIS CERTIFICATE as one of a Seraes dated as of MARCH 1,
1978, authorized, assued, and delavered an the prancapal amount
of $125,000 FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE
CITY'S CONTRACTUAL OBLIGATIONS INCURRED PURSSANT TO CONTRACTS
FOR OFF-STREET PARKING FACILITIES, TO BE AVAILABLE TO THE
GENERAL PUBLIC, ON LAND OWNED BY THE CITY AND NOW KNOWN AS
"WILLIAMS SQUARE" (FORMERLY "TRADE SQUARE"), AND PAYING ALL
OR A PORTION OF THE CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL
SERVICES OF ENGINEERING, ARCHITECTS, ATTORNEYS, AND FINANCIAL
ADVISORS IN CONNECTION WITH SUCH OFF-STREET PARKING FACILITIES
AND CERTIFICATES OF OBLIGATION
THE OUTSTANDING CERTIFICATES of thas Ser~es may be redeem-
ed prior to thear scheduled maturataes, at the optaon of saad
Caty, an whole, or an part, on any date, for the principal
amount thereof and accrued anterest thereon to the date faxed
for redemption On, or praor to, the date faxed for any such
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redemption said City shall cause a written notice of such re-
demption to be given to the "Paying Agent" 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
Certificates which are to be so redeemed and accrued interest
thereon to the date fixed for redemption If such written no-
t~ce of redemption is given and if due provision for such pay-
ment is made, all as provided above, the Certlflcates 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 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 th~ngs required or
proper to be performed, ex~st, 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 fa~th 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 revenues of the City's com-
bined Waterworks and Sewer System remaining after payment of all
operation and maintenance expenses thereof, and all debt ser-
vice, reserve, and other requirements in connection with all of
the City's revenue bonds (now or hereafter outstanding) which
are payable from all or any part of the Net Revenues of the
City's combined Waterworks and Sewer System
IN WITNESS WHEREOF, this Certificate and the interest cou-
pons 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, and the
official seal of said City has been duly impressed, or placed
in facsimile, on this CertIficate
xxxxxxxx xxxxxxxx
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 this Certifi-
cate of Obligation has been registered by the Comptroller of
Public Accounts of the State of Texas
Witness my signature and seal th~s
XXXXXXXX
Comptroller of Public Accounts of
the State of Texas
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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 thzs znterest coupon,
an lawful money of the Unzted States of Amerzca, w~thout ex-
change or collection charges to the bearer, unless due provz-
szon has been made for the redemption przor to scheduled ma-
turzty of the Certlfzcate to which th~s znterest coupon apper-
tains, upon presentation and surrender of th~s znterest coupon,
at
FIRST STATE BANK,
DENTON, TEXAS,
said amount being znterest comzng due that day on the Cert~fl-
cate, bearing the number hereinafter deszgnated, of that ~ssue
of CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES 1978,
DATED MARCH 1, 1978 Certificate No
xxxxxxxx xxxxxxxx
Czty Secretary Mayor
Section 7 That a speczal "Interest and Sznk~ng Fund" is
hereby created solely for the benefit of said Certzfzcates, and
said Interest and Sznk~ng Fund shall be establzshed and ma~n-
rained by sazd Czty at an official deposztory bank of sa~d C~ty
Saad Interest and Sznk~ng Fund shall be kept separate and apart
from all other funds and accounts of sazd C~ty, and shall be
used only for payzng the znterest on and principal of sazd Cer-
t~fzcates Ail ad valorem taxes levied and collected for and
on account of sazd Certificates shall be deposzted, as collect-
ed, to the credzt of said Interest and S~nkzng Fund Durzng
each year whzle any of said Certificates or znterest coupons
appertaining thereto are outstandzng and unpaid, the governzng
body of sazd C~ty shall compute and ascertazn a rate and amount
of ad valorem tax which wztl be suff~czent to razse and produce
the money required to pay the znterest on sazd Certzfzcates as
such znterest comes due, and to provide and ma~ntazn a sznk~ng
fund adequate to pay the pr~nczpat of such Certzfzcates as such
pr~nozpal matures (but never less than 2% of the original pr~n-
czpal amount of sazd Certzf~cates as a s~nk~ng fund each year),
and sazd tax shall be based on the latest approved tax rolls of
said C~ty, w~th full allowance bezng made for tax delznquenczes
and the cost of tax collectzon Sa~d rate and amount of ad
valorem tax zs hereby lev~ed, and zs hereby ordered to be levzed,
against all taxable property zn sazd Czty for each year whlle
any of samd Certzfzcates or znterest coupons appertaining there-
to are outstandang and unpazd, and sazd tax shall be assessed
and collected each such year and deposzted to the credit of the
aforesaid Interest and Sznkzng Fund Sa~d ad valorem taxes
sufficient to provzde for the payment of the lnterest on and
principal of sa~d Certificates, as such ~nterest comes due and
such principal matures, are hereby pledged zrrevocably for such
payment, wzth~n the t~m~t prescrlbed by law
Section 8 Sazd Certzfzcates addmtmonally shall be payable
from and secured by the revenues of the Czty's combined Water-
work~ and Sewer System remaznzng after payment of all operation
and mazntenance expenses thereof, and all debt service, reserve,
and other requirements zn connectzon wmth all of the C~ty's
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revenue bonds (now or hereafter outstanding) which are pay-
able from all or any part of the Net Revenues of the City's
combined Waterworks and Sewer System, with the aforesaid re-
maining revenues being hereinafter called "Surplus Revenues"
The City shall deposit Surplus Revenues 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 principal 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 ex-
tent and by the amount of the Surplus Revenues then on deposit
in the Interest and Sinking Fund
Section 9 That the Mayor of said City is hereby author-
lzed to have control of said Certificates and all necessary
records and proceedings pertaining to said Certificates pend-
Ing 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 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 Certiflcatess, 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 t~me 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
and payment 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 accrued interest to date of delivery,
and such accrued interest shall be deposited Into the Interest
and Sinking 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 21ST DAY OF FEBRUARY, 1978,
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 Ellnor Hughes, Mayor
Bill Nash Dick Stewart
Joe Mitchell Mary Claude Gay
and all of said pe~sons~were present, except the following
absentees ~ ,
thus constituting a quorum Whereupon, among other business,
the following was transacted at said Meetlng 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-
tzon, carrying with it the passage of said Ordinance, prevail-
ed and carried by the following vote
AYES Ail members of sa~d C~ty Council shown
present above voted "Aye", except for B~ll Nash
NOES Bzll, Nas,h
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
mlnutes of said Meetlng, that the above and foregoing paragraph
is a true, full, and correct excerpt from said City Council's
minutes of said Meeting pertalnmng to the passage of said Ordi-
nance, that the persons named zn the above and foregoing para-
graph are the duly chosen, qualifled, and acting officers and
mer0bers of sazd Cmty Council as indicated therein, that each of
the officers and members of said Czty Council was duly and suffi-
ciently notified officially and personally, in advance, of the
tzme, place, and purpose of the aforesaid Meetzng, and that said
Ordinance would be introduced and considered for passage at said
Meeting, and each of said offzcers and members consented, 1n 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 sa~d meeting was gzven, 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 sa~d Ordinance, and
that the Mayor and the City Secretary of said City hereby de-
clare that their signing of thzs Certificate shall constitute
the signing of the attached and followmng copy of said Ordinance
for all purposes
/~D SEALED the 21st day of February, 1978
g v City Becretary Mayor
(SEAL) .........................
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 prlo~~sage as aforesald~________
City Atto~ey
Bond A%torneys