1976-013 ORDINANCE NO 76
ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WHERF~S, the bonds hereinafter authorized were lawfully
and favorably voted at elections duly held in said City on
DECEMBER 18, 1973, and OCTOBER 7, 1975, and
WHEREAS, out of the bonds voted at the election held on
DECEMBFR 18, 1973, for such purpose, the following previously
have been issued and delivered
$1,800,000 out of a voted total of $6,000,000 for the
purpose of constructing and improving streets
· n sald C~ty, and provid~ng drainage and
flood control faell~tles ~n connection there-
w~th, represented by the bonds of Series 1974,
and
WHEREAS, none of the bonds voted at the elect~on held on
OCTOBER 7, 1975, has been authorized, issued, or delivered, and
WHEREAS, it is necessary and advisable to authorize, issue,
and deliver an installment or ser~es of sa~d bonds, and
WHEREAS, the bonds hereinafter authorized and designated
were voted and are to be issued and delivered pursuant to Vernon's
Articles 823, 1175, and 6081f
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
Section 1 That the said Clty's bonds are hereby authoriz-
ed to be issued in the aggregate principal amount of $2,500,000,
FOR THE PURPOSE OF PROVIDING $1,500,000 FOR CONSTRUCTING AND IM-
PROVING STREETS IN SAID CITY, AND PROVIDING DRAINAGE AND FLOOD
CONTROL FACILITIES IN CONNECTION THEREWITH, AND 91,000,000 FOR
PURCHASING AND IMPROVING LANDS FOR PARK PURPOSES
Section 2 That said bonds shall be designated as the
"CITY OF DENTON GENERAL OBLIGATION BONDS, SERIES 1976"
Section 3 That sa~d bonds shall be dated APRIL 15, 1976,
shall be ~n the denomination of $5,000 each, shall be numbered
consecutively from one upward, and shall mature serially on the
maturity date, in each of the years, and in the amounts, respec-
tively, as set forth an the following schedule
MATURITY DATE JULY 15
YEARS AMOUNTS YEARS AMOUNTS
1978 S125,000 1988 $125,000
1979 125~000 1989 125 000
1980 125,000 1990 125 000
1981 125 000 1991 125 000
1982 125,000 1992 150 000
1983 125 000 1993 150 000
1984 125 000 1994 150 000
1985 125 000 1995 150 000
1986 125 000 1996 150 000
1987 125 000
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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 1978 through 1981, 6 50 %
maturities 1982 5 10 %
maturities 1983 through 1984, 4 50 %
maturities 1985 4.60 %
maturities 1986 4 70 %
maturities 1987 4 80 %
maturities 1988 4 90 %
maturities 1989 through 1990, 5 00 %
maturities 1991 5 20 %
maturities 1992 5 30 %
maturities 1993 through 1995, 5 40 %
maturities 1996 4.50 %
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 date~ 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 s~gn-
ed and executed (and said bonds shall be sealed), all as provided,
and in the manner indicated, in the FORM OF BOND set forth in th~s
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 sa~d
bonds, and the form of the aforesaid Interest coupons 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
GENERAL OBLIGATION BOND
SERIES 1976
ON JULY 15, 19 , THE CITY OF DENTON, Denton County, Texas,
hereby promises to-day 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 ~nterest coupons payable JANUARY 15, 1977,
and semiannually thereafter while th~s bond Ks outstanding
THE PRINCIPAL of this bond and the interest coupons apper-
raining 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 ~nterest coupon, at the following, which shall constitute
and be defined as the "Paying Agent" for this Series of Bonds
FIRST NATIONAL CITY BANK, 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 APRIL 15, 1976,
authorl?ed, issued, and delivered in the principal amount of
$2,500,000 FOR THF PURPOqE OF PROVIDING $1,500,000 FOR CONSTRUCT-
ING AND IMPROVING STRFET~ IN SAID CITY, AND PROVIDING DRAINAGE
AND FLOOD CONqROL FACILITIES IN CONNFCTION THFRFWITH, AND
$1,000,000 FOR PURCHASING AND IMPROVING LANDS FOR PARK PURPOSES
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ON JULY 15, 1991,
or on any interest payment date thereafter, any outstanding bonds
of this Serles may be redeemed prior to their scheduled maturi-
ties, at the option of said City, an 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
f~xed for any such redemption said City shall cause a written
notice of such redemption to be published at least once ~n a
nanclal publication published ~n the City of New York, New York
By the date fixed for any such redemption due provls~on shall be
made with the "Paylng 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 f~xed for redemption If such wr~t-
ten notice of redemption ~s 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 thelr scheduled maturltles, 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 r~ght 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 th~s
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, ex~st, and be done precedent to or in the voting,
authorization, issuance, and delivery of thls bond have been per-
formed, existed, and been done in accordance with law, that thls
bond lsa general obllgatlon of said 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
of this bond, as such interest comes due and such principal ma-
tures, have been levied and ordered to be levied agalnst all tax-
able property ~n sa~d City, and have been pledged ~rrevocably for
such payment, wlth~n the llmlt prescribed by law
IN WITNESS WHEREOF, th~s bond and the ~nterest coupons apper-
taining hereto have been s~gned wlth the facslmlle 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
sa~d C~ty 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 certlfy 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 s~gnature and seal th~s
xxxxxxxx
Comptroller of Public Accounts of
the State of Texas
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FORM OF INTEREST COUPON
NO
ON 15, 19
THE CITY OF DENTON, in Denton County, State of Texas,
promises to pay to bearer the amount shown on th~s interest
coupon, in lawful money of the United States of America, w~th-
out exchange or collectlon charges to the bearer, unless due
provision has been made for the redemption prlor to scheduled
maturlty of the bond to which thls ~nterest coupon appertains,
upon presentation and surrender of th~s ~nterest coupon, at
FIRST NATIONAL CITY BANK, NEW YORK, NEW YORK,
OR, AT THE OPTION OF THE BEARER, AT
FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS,
said amount being ~nterest coming due that day on the bond,
bearlng the number hereinafter designated, of that ~ssue of
CITY OF DENTON GENERAL OBLIGATION BONDS, SERIES 1976, DATED
APRIL 15, 1976
Bond No
XXXXXXXX XX~XXX~X
City ~ecretary ......... ~ayor
Section 7 That a special "Interest and Sinking Fund" ~s
hereby created solely for the benefat of sa~d bonds, and sa~d
Interest and Slnkang Fund shall be establashed and ma~ntalned
by sa~d Clty at an offlclal depository bank of sa~d C~ty Sa~d
Interest and S~nk~ng Fund shall be kept separate and apart from
all other funds and accounts of said C~ty, and shall be used only
for paying the ~nterest on and prancapal of sa~d bonds All ad
valorem taxes lev~ed and collected for and on account of sa~d
bonds shall be deposited, as collected, to the credat of sa~d
Interest and S~nklng Fund During each year wh~le any of sa~d
bonds or ~nterest coupons apperta~nang thereto are outstanding
and unpaid, the governing body of saad Caty shall compute and
ascertain a rate and amount of ad valorem tax which wall be suffi-
cient to ralse and produce the money requared to pay th ~nterest
on sa~d bonds as such ~nterest comes due, and to provide and
maintain a s~nk~ng fund adequate to pay the principal of such
bonds as such principal matures (but never less than 2% of the
orlganal pr~ncapal amount of sa~d bonds as a sinking fund each
year), and sa~d tax shall be based on the latest approved tax
rolls of saad C~ty, wath full allowance being made for tax de-
linquencies and the cost of tax collection Sald rate and amount
of ad valorem tax as hereby levaed, and as hereby ordered to be
levaed, agaanst all taxable property an sa~d Caty for each year
wh~le any of sa~d bonds or interest coupons apperta~nang thereto
are outstanding and unpaad, and saad tax shall be assessed and
collected each such year and deposited to the credit of the afore-
sa~d Interest and Sinking Fund Said ad valorem taxes sufficient
to provide for the payment of the ~nterest on and pranc~pal of
said bonds, as such interest comes due and such principal matures,
are hereby pledged ~rrevocably for such payment, wathan the l~m~t
prescrabed by law
Section 8 That the Mayor of said Caty ~s hereby authorazed
to have control of saad bonds and all necessary records and pro-
ceed~ngs perta~nang to sa~d bonds pending their delivery and
their ~nvest~gat~on, examination, and approval by the Attorney
General of the State of Texas, and thear regastrat~on by the
Comptroller of Public Accounts of the State of Texas Upon
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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 facslm~le, on each
of said bonds
Section 9 That the C~ty covenants to and with the pur-
chaser of the bonds that ~t 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(d) of the Internal Revenue Code
of 1954, as amended, or any regulations or rulings pertaining
thereto, and by this covenant the City ~s obligated to comply
with the requirements of the aforesaid Section 103(d) and all
applicable and pertinent Department of the Treasury regulations
relating to arbitrage bonds The City further covenants that the
proceeds of the bonds w~ll not otherwise be used d~rectly 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(d), or any regulations or rulings pertaln~ng thereto
Section 10 That the Clty Council officially finds, de-
termines, and declares that sa~d bonds have been duly advertis-
ed for sale as required by the Home Rule Charter of sa~d C~ty,
that sealed bids have been received at a public sale of sa~d
bonds held on April 6, 1976, that all of said bonds are hereby
sold and shall be delivered to a syndicate managed or headed
by Republic National Bank of Dallas, Dallas, Texas, being the
best bidder at sald public sale, for the principal amount of
said bonds, and accrued interest thereon to the date of delivery
Section 11 It is further found and determined that a no-
t~ce of sale for sa~d bonds as required by the Home Rule Charter
of sa~d City was duly published on February 26, 1976, in The
Bond Buyer, New York, New York, which is a national publication
regularly and primarily carrying financial news and municipal
bond sale notices, and on February 26, 1976, in the Denton
Record-Chronicle, which has been deslgnated as the official news-
paper of the C~ty of Denton The form and substance of sa~d
Official Notice of Sale, and the aforesaid publications thereof,
are hereby approved and ratified in all respects by the City
Council
Section 12 That it is hereby officially found, determin-
ed, and declared that sa~d bonds have been sold at public sale
to the bidder offering the lowest interest cost, after receiving
sealed bids pursuant to an Official Not~ce of Sale and Official
Statement dated March 23, 1976, prepared and distributed ~n
connection with the sale of said bonds Sald 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 Not~ce of Sale and Official Statement are true
and correct in all mater~al respects, to the best knowledqe and
belief of the City Council
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