1977-026ORDINANCE NO 77-A_~
ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM
REVENUE BONDS
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WHEREAS, the bonds
and favorably voted at
MAY 16, 1972, and
hereinafter authorized were lawfully
an election duly held in said City on
WHEREAS, out of the bonds voted at said election, the
following previously have been issued and delivered
$3,250,000 out of a voted total of $5,275,000, for
the purpose of improving and extending the
City's Waterworks System, represented by
part of the Series 1972 Bonds, and part of
the Series 1974 Bonds, and
$ 250,000 out of a voted total of $5,725,000, for
the purpose of improving and extending the
City's Sewer System, represented by part
of the Series 1972 Bonds, and part of the
Series 1974 Bonds, and
WHEREAS, the bonds hereinafter authorized and designated
were voted and are to be issued and delivered pursuant to
Vernon's Articles 1111 through 1118
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
Section 1 That the said City's bonds are hereby author-
ized to be issued in the aggregate principal amount of $500,000
for the purpose of providing $225,000 FOR IMPROVING ARID EXTEND-
ING THE CITY'S WATERWORKS SYSTEM, and providing $275,000 FOR
IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM
Section 2 That said bonds shall be designated as the
"CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES
1977"
Section 3 That said bonds shall be dated JUNE 15, 1977,
shall be in the denomination of $5,000 each, shall be number-
ed 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 DATE JULY 15
YEARS AMOUNTS YEARS
1980
$10,000
1987
1981
15,000
1988
1982
25,000
1989
1983
25,000
1990
1984
25,000
1991
1985
50,000
1992
1986
50,000
Section 4 That the bonds scheduled
years, respectively, set forth below shall
the following rates per annum
-1-
AMOUNTS
$50,000
50,000
50,000
50,000
50,000
50,000
to mature during the
bear interest at
maturities
1980
through
19_,
%
maturities
19
through
19
%
maturities
19
through
19_,
%
maturities
19
through
19_,
%
maturities
19
through
19
8
maturities
19
through
19
%
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, shall have the characteristics, and
shall be signed and executed (and said bonds shall be sealed),
all as provided, 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
form 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
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WATER AND SEWER SYSTEM REVENUE BOND
SERIES 1977
$5,000
ON JULY 15, 19 , THE CITY OF DENTON, 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
8 per annum, evidenced by interest coupons payable JANUARY
1-5,1978, and semiannually thereafter while this bond is out-
standing
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
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 JUNE 15, 1977,
authorized, issued, and delivered in the principal amount of
$500,000 for the purpose of providing $225,000 FOR IMPROVING
AND EXTENDING THE CITY'S WATERWORKS SYSTEM, and providing
$275,000 FOR IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM
-2-
IT IS HEREBY certified and covenanted that this bond 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 bond have been performed, existed, and been done
in accordance with law, that this bond is a special obligation,
and that the principal of and interest on this bond, together with
other revenue bonds of said City, are payable from, and secured
by a first lien 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 lien
on and pledge of, the aforesaid Net Revenues
THE HOLDER HEREOF shall never have the right to demand pay-
ment of this 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 signature of
the Mayor of said City and countersigned with the facsimile signa-
ture of the City Secretary of said City, and the official seal of
said 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 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 Public Accounts of
the State of Texas
FORM OF INTEREST COUPON
NO
ON 15, 19
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, upon presen-
tation 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,
said 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
1977, DATED JUNE 15, 1977 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
City Secretary
xxxxxxxx
Mayor
-3-
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
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) 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
1977 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, 1979, as will
be sufficient to pay the next maturing prin-
cipal of said Series 1977 Bonds
Section 9 That the Reserve Fund heretofore created for
the benefit of said Outstanding Bonds and all Additional Bonds
now contains money and investments equal to the sum of $497,804
in market value No additional deposits shall be required to
be made into the Reserve Fund as long as the money and invest-
ments therein are at least equal to the aggregate amount of
$497,804 in market value, but if and whenever the Reserve Fund
is reduced below said aggregate amount, deposits shall be made
into the Reserve Fund from the first available Net Revenues of
the City's Water and Sewer System (after the required deposits
have been made into the Interest and Sinking Fund) and contin-
ued until such time as the Reserve Fund has been restored to
said aggregate amount, and the City covenants to keep and main-
tain said aggregate amount in the Reserve Fund The Reserve
Fund shall be maintained, used, and may be invested, for the
benefit of the Outstanding Bonds, the Series 1977 Bonds, and
all Additional Bonds, in accordance with the procedures, as
herein modified and supplemented, set forth in the ordinances,
respectively, authorizing the Outstanding Bonds
Section 10 That the bonds authorized by this Ordinance
are and shall be special obligations of 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
-4-
Section 11 That the Mayor of said City is hereby authorized
to have control of said bonds and all necessary records and pro-
ceedings 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 in writing to act for said Comptroller)
shall manually sign the Comptroller's Registration Certificate
printed and endorsed on each of said bonds, and the seal of said
Comptroller shall be impressed, or placed in 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 this 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 pertaining
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 will 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 the sale of said bonds are required
as soon as possible and without delay for necessary and urgently
needed public, and public notice of the time, place, and purpose
of said meeting was given, all as required by Vernon's Ann
Civ St Article 6252-17
Section 14 That the City Council officially finds, deter-
mines, and declares that said 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 May 17, 1977, that all of said bonds are hereby sold
and shall be delivered to a syndicate managed or headed by
being the best bidder at said 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 Notice of Sale for said bonds was duly published on
April 13, 1977 in The Bond Buyer, New York, New York, which is
a national publication regularly and primarily carrying fi-
nancial news and municipal bond sale notices, and on April 11,
1977, in the Denton Record-Chronicle, which has been designat-
ed as the official newspaper of the City of Denton The form
and substance of said Official Notice of Sale, and the afore-
said publications thereof, are hereby approved and ratified
in all respects by the City Council
Section 16 That it is hereby officially found, determin-
ed, and declared that said bonds have been sold at public sale
to the bidder offering the lowest interest cost, after receiving
sealed bids pursuant to an Official Notice of Sale and Official
-5-
Statement dated May 3, 1977, prepared and distributed in connec-
tion with the sale of said bonds Said Official Notice 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 material respects, to the best knowledge and be-
lief of the City Council
-6-
GENERAL CERTIFICATE
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
We, the undersigned, hereby officially certify that we
are the Mayor and City Secretary, respectively, of said City,
and we further certify as follows
1 That said City is a duly incorporated Home Rule City,
having more than 5000 inhabitants, operating and existing under
the Constitution and laws of the State of Texas and the duly
adopted Home Rule Charter of said City, which Charter has not
been changed or amended since the passage of the ordinance au-
thorizing the issuance of the City of Denton General Obligation
Bonds, Series 1976,
2 That no litigation of any nature has ever been filed
pertaining to, affecting, or contesting (a) the election
which authorized the proposed City of Denton Water and Sewer
System Revenue Bonds, Series 1977, dated June 15, 1977, in
the principal amount of $500,000, (b) the issuance, delivery,
payment, security, or validity of said proposed bonds, (c) the
title of the present members and officers of the City Council
of said City to their respective offices., or (d) the validity
of the corporate existence or the Charter of said City
3 That none of the revenues or income of said City's
Water and Sewer System have been pledged or encumbered to the
payment of any debt or obligation of said City or said System,
except in connection with the aforesaid proposed Series 1977
Bonds, and the outstanding bonds of the following issues of
said City
Water and Sewer
Water and Sewer
Water and Sewer
Water and Sewer
Water and Sewer
Water and Sewer
Water and Sewer
System
System
System
System
System
System
System
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Bonds, Series 1960,
Bonds, Series 1962,
Bonds, series 1964,
Bonds, Series 1966,
Bonds, Series 1969,
Bonds, Series 1972,
Bonds, series 1974
4 That the Interest and Sinking Fund and the Reserve
Fund, created and maintained for the benefit of the outstand-
ing bonds listed above, in accordance with the ordinances,
respectively, authorizing their issuance, each contains the
amount now required to be on deposit therein, and the City is
not in default in any of the covenants contained in the afore-
said ordinances
SIGNED AND SEALED this the 17th day of May, 1977
City secretary
(SEAL)
Mayor
7-
~h a 110 9 7 - a(,
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 17TH DAY OF MAY, 1977,
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 Elinor Hughes, Mayor
Joe Mitchell Bill Nash
Richard Stewart Mary Claude Gay
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 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
AYES All 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 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 Civ 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
;SMIGD AND SEALED the 17th day of May, 1977
G0 nn L
City Secretary 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 prior tos_passage aforesaid
city At rney
Bond Attornevs
CQ,. d~ti c:-.-c v no . 7 7 -
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 17TH DAY OF MAY, 1977,
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 Elinor Hughes, Mayor
Joe Mitchell Bill Nash
Richard Stewart Mary Claude Gay
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 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:
AYES: All 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 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. Civ. 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.
SIGN D AND SEALED the 17th day of May, 1977.
City Secretary 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 prior to its passage as aforesaid.
y
G C,-/,V MlkriW~,, l P,~
s
ORDINANCE NO. 77-' I(o
ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM
REVENUE BONDS
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WHEREAS, the bonds
and favorably voted at
MAY 16, 1972; and
hereinafter authorized were lawfully
an election duly held in said City on
WHEREAS, out of the bonds voted at said election, the
following previously have been issued and delivered:
$3,250,000 out of a voted total of $5,275,000, for
the purpose of improving and extending the
City's Waterworks System, represented by
part of the Series 1972 Bonds, and part of
the Series 1974 Bonds, and
$ 250,000 out of a voted total of $5,725,000, for
the purpose of improving and extending the
City's Sewer System, represented by part
of the Series 1972 Bonds, and part of the
Series 1974 Bonds; and
WHEREAS, the bonds hereinafter authorized and designated
were voted and are to be issued and delivered pursuant to
Vernon's Articles 1111 through 1118.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
Section 1.That the said City's bonds are hereby author-
ized to be issued in the aggregate principal amount of $500,000
for the purpose of providing $225,000 FOR IMPROVING AND EXTEND-
ING THE CITY'S WATERWORKS SYSTEM, and providing $275,000 FOR
IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM.
Section 2. That said bonds shall be designated as the:
"CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES
1977".
Section 3. That said bonds shall be dated JUNE 15, 1977,
shall be in the denomination of $5,000 each, shall be number-
ed 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 DATE: JULY 15
YEARS
AMOUNTS
YEARS
AMOUNTS
1980
$10,000
1987
$50,000
1981
15,000
1988
50,000
1982
25,000
1989
50,000
1983
25,000
1990
50,000
1984
25,000
1991
50,000
1985
50,000
1992
50,000
1986
50,000
Section 4. That the bonds scheduled to mature during the
years, respectively, set forth below shall bear interest at
the following rates per annum:
-1-
maturities
1980
through
19
%
maturities
19
through
19
%
maturities
19
through
19
%
maturities
19
through
19
%
maturities
19
through
19
%
maturities
19
through
19
%
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, shall have the characteristics, and
shall be signed and executed (and said bonds shall be sealed),
all as provided, 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
form 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.
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WATER AND SEWER SYSTEM REVENUE BOND
SERIES 1977.
$5,000
ON JULY 15, 19 , THE CITY OF DENTON, 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 annum, evidenced by interest coupons payable JANUARY
15, 1978, and semiannually thereafter while this bond is out-
standing.
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:
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 JUNE 15, 1977,
authorized, issued, and delivered in the principal amount of
$500,000 for the purpose of providing $225,000 FOR IMPROVING
AND EXTENDING THE CITY'S WATERWORKS SYSTEM, and providing
$275,000 FOR IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM.
-2-
IT IS HEREBY certified and covenanted that this bond 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 bond have been performed, existed, and been done
in accordance with law; that this bond is a special obligation;
and that the principal of and interest on this bond, together with
other revenue bonds of said City, are payable from, and secured
by a first lien 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 lien
on and pledge of, the aforesaid Net Revenues.
THE HOLDER HEREOF shall never have the right to demand pay-
ment of this 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 signature of
the Mayor of said City and countersigned with the facsimile signa-
ture of the City Secretary of said City, and the official seal of
said 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 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 Public Accounts of
the State of Texas.
FORM OF INTEREST COUPON:
NO. $
ON 15, 19
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, upon presen-
tation 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,
said 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
1977, DATED JUNE 15, 1977. 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
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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.
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) 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
1977 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, 1979, as will
be sufficient to pay the next maturing prin-
cipal of said Series 1977 Bonds.
Section 9. That the Reserve Fund heretofore created for
the benefit of said Outstanding Bonds and all Additional Bonds
now contains money and investments equal to the sum of $497,804
in market value. No additional deposits shall be required to
be made into the Reserve Fund as long as the money and invest-
ments therein are at least equal to the aggregate amount of
$497,804 in market value; but if and whenever the Reserve Fund
is reduced below said aggregate amount, deposits shall be made
into the Reserve Fund from the first available Net Revenues of
the City's Water and Sewer System (after the required deposits
have been made into the Interest and Sinking Fund) and contin-
ued until such time as the Reserve Fund has been restored to
said aggregate amount; and the City covenants to keep and main-
tain said aggregate amount in the Reserve Fund. The Reserve
Fund shall be maintained, used, and may be invested, for the
benefit of the Outstanding Bonds, the Series 1977 Bonds, and
all Additional Bonds, in accordance with the procedures, as
herein modified and supplemented, set forth in the ordinances,
respectively, authorizing the Outstanding Bonds.
Section 10. That the bonds authorized by this Ordinance
are and shall be special obligations of 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.
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Section 11. That the.Mayor of said City is hereby authorized
to have control of said bonds and all necessary records and pro-
ceedings 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 in writing to act for said Comptroller)
shall manually sign the Comptroller's Registration Certificate
printed and endorsed on each of said bonds, and the seal of said
Comptroller shall be impressed, or placed in 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 this 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 pertaining
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 will 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 the sale of said bonds are required
as soon as possible and without delay for necessary and urgently
needed public, and public notice of the time, place, and purpose
of said meeting was given, all as required by Vernon's Ann.
Civ. St. Article 6252-17.
Section 14. That the City Council officially finds, deter-
mines, and declares that said 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 May 17, 1977; that all of said bonds are hereby sold
and shall be delivered to a syndicate managed or headed by
being'the best bidder at said 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 Notice of Sale for said bonds was duly published on
April 13, 1977 in The Bond Buyer, New York, New York, which is
a national publication regularly and primarily carrying fi-
nancial news and municipal bond sale notices, and on April 11,
1977, in the Denton Record-Chronicle, which has been designat-
ed as the official newspaper of the City of Denton. The form
and substance of said Official Notice of Sale, and the afore-
said publications thereof, are hereby approved and ratified
in all respects by the City Council.
Section 16. That it is hereby officially found, determin-
ed, and declared that said bonds have been sold at public sale
to the bidder offering the lowest interest cost, after receiving
sealed bids pursuant to an official Notice of Sale and official
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Statement dated May 3, 1977, prepared and distributed in connec-
tion with the sale of said bonds. Said Official Notice 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 ore true and
correct in all material respects, to the best knowledge and be-
lief of the City Council.
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GENERAL CERTIFICATE
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
We, the undersigned, hereby officially certify that we
are the Mayor and City Secretary, respectively, of said City,
and we further certify as follows:
1. That said City is a duly incorporated Home Rule City,
having more than 5000 inhabitants, operating and existing under
the Constitution and laws of the State of Texas and the duly
adopted Home Rule Charter of said City, which Charter has not
been changed or amended since the passage of the ordinance au-
thorizing the issuance of the City of Denton General Obligation
Bonds, Series 1976.
2. That no litigation of any nature has ever been filed
pertaining to, affecting, or contesting: (a) the election
which authorized the proposed City of Denton Water and Sewer
System Revenue Bonds, Series 1977, dated June 15, 1977, in
the principal amount of $500,000, (b) the issuance, delivery,
payment, security, or validity of said proposed bonds, (c) the
title of the present members and officers of the City Council
of said City to their respective offices., or (d) the validity
of the corporate existence or the Charter of said City.
3. That none of the revenues or income of said City's
Water and Sewer System have been pledged or encumbered to the
payment of any debt or obligation of said City or said System,
except in connection with the aforesaid proposed Series 1977
Bonds, and the outstanding bonds of the following issues of
said City:
Water and Sewer
Water and Sewer
Water and Sewer
Water and Sewer
Water and Sewer
Water and Sewer
Water and Sewer
System
System
System
System
System
System
System
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Bonds, Series 1960;
Bonds, Series 1962;
Bonds, Series 1964;
Bonds, Series 1966;
Bonds, Series 1969;
Bonds, Series 1972;
Bonds, Series 1974.
4. That the Interest and Sinking Fund and the Reserve
Fund, created and maintained for the benefit of the outstand-
ing bonds listed above, in accordance with the ordinances,
respectively, authorizing their issuance, each contains the
amount now required to be on deposit therein, and the City is
not in default in any of the covenants contained in the afore-
said ordinances.
SIGNED AND SEALED this
City Secretary
(SEAL)
the 17th day of May, 1977.
ge r4,-. _
Mayor