1974-027 ORDINANCE NO 74-27
THE ISSUANCE OF ELECTRIC REVENUE BONDS
bonds hereinafter authorized were lawfully
at an election duly held ~n said C~ty on
the $15,000,000 Electric Revenue Bonds voted
$10,500,000 thereof have been lssued and de-
Ser~es 1968, Series 1970, and Ser~es 1972,
bonds hereinafter authorized and designated
to be ~ssued and delivered pursuant to
1111 through 1118
CITY OF DE~TON HEREBY ORDAINS
the said C~ty's bonds are hereby au-
~ssued ~n the aggregate principal amount of
PURPOSE OF IMPROVING AND EXTENDING THE
LIGHT AND POWER SYSTEM
said bonds shall be designated as the
ELECTRIC REVENUE BONDS, SERIES 1974"
sa~d bonds shall be dated JULY 1, 1974,
denomination of $5,000 each, shall be numbered
one upward, and shall mature serially on the
each of the years, and an the amounts, respec-
in the following schedule
MATURITY DATE NOVEMBER 1
YEARS AMOUNTS
1976 $50,000
1977 50,000
1978 50,000
1979 50,000
1980 50,000
1981 50,000
1982 50,000
1983 50,000
1984 50,000
1985 75,000
1986 75,000
1987 75,000
1988 75 000
1989 75 000
1990 75 000
1991 75000
1992 75,000
1993 75,000
1994 75,000
1995 75~000
1996 75,000
1997 75,000
1998 75,000
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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 1976 through 1987, 7 00%
maturities 1988 6 25%
maturities 1989 6 00%
maturities 1990 6 10%
~matur~t~es 1991 6 20%
maturities 1992 6 30%
maturities 1993 6 40%
maturities 1994 6 50%
maturities 1995 6 60%
maturities 1996 6 70%
maturities 1997 through 1998, 5 00%
Said ~nterest shall be evldenced by ~nterest coupons which shall
appertaln to sa~d bonds, and which shall be payable ~n the manner
provided and on the dates stated in the FORM OF BOND set forth
an this Ordinance
Section 5 That sa~d bonds and ~nterest coupons shall be
lssued, shall be payable, may be redeemed prior to their schedul-
ed maturities, shall have the characteristics, and shall be slgn-
ed and executed (and sald bonds shall be sealed), all as provided,
and in the manner indicated, ~n the FORM OF BOND set forth ~n th~s
Ordinance
Section 6 That the form of sa~d bonds, ~nclud~ng the form
of Reglstratlon 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 ~nterest coupons which shall
appertain and be attached initially to each of sa~d bonds, shall
be, respectlvely, substantlally as follows
FORM OF BOND
NO $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON ELECTRIC REVENUE BOND
SERIES 1974
ON NOVEMBER 1, 19 , THE CITY OF DENTON, TEXAS,
hereby promises to pay ~-6 bearer hereof the principal amount of
FIVE THOUSAND DOLLARS
and to pay lnterest thereon, from date hereof, at the rate of __%
per annum, evidenced by ~nterest cour ~ns payable MAY 1, 1975,
and sem~-annually thereafter wh~le th~s bond is outstanding
THE PRINCIPAL of th~s bond and the interest coupons apper-
taining hereto shall be payable to bearer, ~n lawful money of the
United States of Amerlca, w~thout exchange or collectlon charges
to the bearer, upon presentation and surrender of th~s bond or
proper lnterest coupon, at the following, which shall constltute
and be defined as the "Paying Agent" for this Series of Bonds
FIRST STATE BANK OF DENTON, DENTON, TEXAS,
OR, AT THE OPTION OF THE BEARER, AT
FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS
THIS BOND ls one of a Serles dated as of JULY 1, 1974,
authorized, ~ssued, and delivered ~n the principal amount of
$1,500,000 FOR THE PURPOSE OF IMPROVING AND EXTENDING THE
CITY'S ELECTRIC LIGHT AND POWER SYSTEM
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ON NOVEMBER 1, 1989,
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
nan¢lal publication published 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
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 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
1n accordance with law, that this bond is a special obligation,
and that the principal of and ~nterest 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
Electric Light and Power 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
FURTHER, SAID CITY has reserved the right, subject to the
restrlctlons referred to in the Ordinance authorizing this
Series of bonds, to combine the operation of its Electric Light,
Waterworks, and Sanitary Sewer Systems, in which event this
Series of bonds and other revenue bonds of the City may be se-
cured by and made payable from a first lien on and pledge of the
Net Revenues of said combined Electric L~ght, Waterworks, and
Sanitary Sewer Systems
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
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FORM OF INTEREST COUPON
NO $
ON 1, 19 ,
THE CITY OF DENTON, in the County of Denton, State of Texas,
promises to pay to bearer the amount shown on th~s lnterest
coupon, in lawful money of the Un~ted 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 th~s ~nterest coupon appertains,
upon presentatlon and surrender of th~s ~nterest coupon, at
FIRST STATE BANK OF DENTON, DENTON, TEXAS,
OR, AT THE OPTION OF THE BEARER, AT
FIRST NATIONAL BANK IN DALLAS, DALLAS. TEXAS,
sa~d amount being ~nterest coming due that day on the bond,
bearing the number hereinafter designated, of that lssue of
CITY OF DENTON ELECTRIC REVENUE BONDS, SERIES 1974, DATED
JULY 1j 1974 The holder hereof shall never have the r~ght
to demand payment of th~s obligation out of any funds raised
or to be raised by taxation Bond No
xxxxxxxx xxxxxxxx
City Secretary Mayor
Sectaon 7 (a) That the term "Outstanding Bonds," as herein-
after used an thas Ordanance, shall mean all of sa~d C~ty's pres-
ently outstandang bonds which are payable from, and secured by a
f~rst laen on and pledge of, the Net Revenues of saad Caty's
Electric Light and Power System
(b) That the bonds authorazed hereby are parity "Add~taonal
Bonds" as defined ~n the ordinance passed on October 12, 1954
authorizing the ~ssuance, sale, and delivery of saad Caty's
Electric Revenue Bonds, Ser~es 1954
(C) That Sections ll through 29 of said ordinance are hereby
adopted by reference and shall be applicable to the bonds au-
thorazed to be assued by th~s Ordanance for all purposes, except
to the extent hereanafter specifically modified and supplemented
The bonds authorazed to be ~ssued by th~s Ordinance and the Out-
standang Bonds are and shall be on a parity and of equal d~gn~ty
an all respects, and are and shall be payable from, and secured
by a f~rst l~en on and pledge of, the Net Revenues of said
C~ty's Electrae Laght and Power System
Section 8 That, ~n addition to all other amounts requir-
ed by the ordinances, respectively, authoraz~ng the Outstanding
Bonds, there shall be deposated ~nto the Interest and Redemption
Fund (created for the benefit of sa~d Outstanding Bonds and all
Addataonal Bonds) the following
(a) such amounts, in approximately equal monthly lnstall-
ments, deposited on or before the 10th day of each
month hereafter, as wlll be sufficient to pay the ln-
terest scheduled to come due on the bonds authorized by
th~s Ordinance on the next ~nterest payment date, and
(b) such amounts, an approxamately equal monthly install-
ments, deposited on or before the 10th day of each
month hereafter, commencing on or before November 10, 1975,
as wall be sufflclent to pay the next maturing prin-
cipal of the bonds authorized by th~s Ordinance
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Section 9 That there shall be deposited into the Reserve
Account in the Interest and Redemption Iund, created for the
benefit of said Outstanding Bonds and all Additional Bonds, the
following amounts, at the following times
(a) on or before July 10, 1974, and on or before the
10th day of each month thereafter, to and includ-
ing Aprll 10, 1977, the sum of at least $9,950, and
(b) on or before May 10, 1977, and on or before the
10th day of each month thereafter, the sum of at
least $2,850, until the aggregate amount of
$1,880,000 shall have been accumulated in said
Reserve Account
Thereafter said aggregate amount of $1,880,000 shall be maintain-
ed an sa~d Reserve Account, for the benefit of the Outstanding
Bonds, the Series 1974 Bonds, and all Additional Bonds, in accor-
dance with the procedures as herein modified and supplemented,
set forth in the ordinances authorizing the Outstanding Bonds
The deposits required by this Section are cumulative of, and
include, all deposits required to be made into said Reserve
Account by all ordinances authorizing the Outstanding Bonds
Section 10 That the bonds authorized by this Ordinance are
and shall be special obligations of said C~ty, 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 C~ty is hereby authorized
to have control of said bonds and all necessary records and pro-
ceedlngs 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
w~thln 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 is 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 will 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 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 improvements, and that said meeting was open to
the public, and publlc not~ce of the time, place, and purpose
of said meetlng was g~ven, all as required by Vernon's Ann
Clv St Article 6252-17
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Section 14 That the proceeds of the Series 1974 Bonds
shall be used solely for making ~mprovements and extensions of
the City's Electrlc Llght and Power System which have been de-
termined by the C~ty Council to be necessary and economically
feasible
Section 15 That the City Council officially finds, de-
termlnes, and declares that sa~d bonds have been duly advertis-
ed for sale as required by the Home Rule Charter of said C~ty,
that sealed b~ds have been received at a public sale of said
bonds held on June 25, 1974, that all of said bonds are hereby
sold and shall be delivered to a syndicate managed or headed
by Underwood~ Neuhaus & Co , Inc ,
being the best bldder at sa~d public sale, for the principal
amount of sa~d bonds, and accrued ~nterest thereon to the date
of delivery, plus a premium of $ -0-
Sectlon 16 It ~s further found and determlned that the
Off~clal Not~ce of Sale for sa~d bonds was duly published on
May 23, 1974, in The Bond Buyer, New York, New York, which is
a national publication regularly and primarily carrying
nanc~al news and municipal bond sale notices, and on May 23,
1974, ~n the Denton Record-Chronicle, which has been designat-
ed as the official newspaper of the City of Denton The form
and substance of sa~d Offlclal Not~ce of Sale, and the afore-
sa~d publications thereof, are hereby approved and ratified
· n all respects by the City Council
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CERTIFICATE FOR
ORDINANCE AUTHORIZING THE ISSUANCE OF ELECTRIC 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
SPECIAL MEETING ON THE 25TH DAY OF JUNE, 1974,
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 Bill Neu, Mayor
Morris K~bler Tom D. Jester, Jr
Mrs Lilllan Miller George Schneider
and all of said persons were present, except the following
absentees Miller and Jester ,
thus constituting a quorum Whereupon, among other business,
the followlng was transacted at said Meeting a written
ORDINANCE AUTHORIZING THE ISSUANCE OF ELECTRIC REVENUE BONDS
was duly lntroduced for the cons~deratlon of sald City Council
and read in full. It was then duly moved and seconded that said
Ordinance be passed, and, after due discussion, said motion,
carrying with it the passage of said Ordinance, prevailed 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-
going paragraph is attached to and follows this Certificate,
that said Ordinance has been duly recorded in sald 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
m~nutes of sa~d Meeting pertaining to the passage of sa~d Ordi-
nance, that the persons named in the above and foregoing paragraph
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 sufficiently noti-
fied officially and personally, in advance, of the time, place,
and purpose of the aforesaid Meeting, and that said Ordinance
would be lntroduced and considered for passage at said Meeting,
and each of said officers and members consented, in advance, to
the holdlng of said Meeting for such purpose, and that said Meet-
lng was open to the 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
3. That the Mayor of said C~ty has approved, and hereby ap-
proves, the aforesaid Ordinance, that the Mayor and the City Secre-
tary of said City have duly signed said Ordinance, and that the
Mayor and the Clty Secretary of said City hereby declare that their
signing of this Certlflcate shall constitute the signing of the
attached and following copy of said Ordinance for all purposes
SIGNED AND SEALED the 25th day of June, 1974
(SEAL) ........................................................
We, the undersigned, being respectively the City Attorney
and the Bond Attorneys of the C~ty of Denton, Texas, hereby cer-
tify that we prepared and approved as to legality the attached
and following Ordinance prior to ~ts Da~a~e as.aforesaid
Ci~Wy A~tor~ey
Bofid A%torneys
LAW OFFICES
CALL,PARKHURST & HORTON
,Juno 25~ 1974
Honorable Mayor and Council of
the City of Denton
Denton, Texas
Gentlemen
City of Denton Electric Revenue Bonds,
Series 1974, $1,500,000
In compliance with Section 9 02 and Section 9 04 of
the City Charter of the City of Denton, you are advised
that the bids for the captioned issue of bonds have been
tabulated and that we find that the bid of a syndicate
managed or headed by the following
with the bonds to bear interest at the rates therein spe~l-
fled, with such bidder to pay par and accrued interest to
date of delivery for said bonds, plus a premium of $ ~-o-- ,
is the lowest and best bid received, and we recommend that
· t be accepted
We further certify that we have examined the ordinance
presently placed before the Mayor and Council for the pur-
pose of autorlzlng the issuance of said bonds, and, in our
opinion, the said proposed bond ordinance is legal, and the
bonds to be ~ssued thereunder wall be valid and binding
obligations of the City, payable from the Net Revenues of
the City's Electric Llght and Power System
Respectfully,
McCALL, PARKHURST & HORTON
Paul B Horton