1974-026 ORDINANCE NO 74-26
ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM
REVENUE BONDS
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WHEREAS, the bonds hereinafter authorized were lawfully
and favorably voted at an election duly held ~n sald City on
MAY 16, 1972, and
WHEREAS, out of the bonds voted at sa~d electlon, the
following previously have been issued and delivered
$1,400,000 out of a voted total of $5,275,000, for
the purpose of lmprovlng and extending the
C~ty's Waterworks System, represented by
part of the Serles 1972, and
$ 100,000 out of a voted total of $5,725,000, for
the purpose of ~mprov~ng and extending the
City's Sewer System, represented by part
of the Ser~es 1972, and
WHEREAS, the bonds hereinafter authorized and designated
were voted and are to be ~ssued and delivered pursuant to
Vernon's Articles 1111 through 1118
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
Section 1 That the sa~d C~ty's bonds are hereby author-
· zed to be ~ssued ~n the aggregate principal amount of $2,000,000,
for the purpose of providing $1,850,000 FOR IMPROVING AND EXTEND-
ING THE CITY'S WATERWORKS SYSTEM, and providing $150,000 FOR
IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM
Section 2 That sa~d bonds shall be designated as the
"CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES
1974"
Section 3 That said bonds shall be dated JULY 15, 1974,
shall be ~n 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 an the amounts,
respectively, as set forth ~n the following schedule
MATURITY DATE JULY 15
YEARS AMOUNTS YEARS AMOUNTS
1976 $ 50,000 1988 $100,000
1977 50,000 1989 100,000
1978 75,000 1990 100,000
1979 75,000 1991 100,000
1980 75,000 1992 100,000
1981 75,000 1993 100,000
1982 75,000 1994 100,000
1983 75,000 1995 100,000
1984 75,000 1996 100,000
1985 75,000 1997 100,000
1986 100,000 1998 100,000
1987 100,000
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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 1981, 6 50%
matur~tles 1982 through 1986, 5 60%
maturltles 1987 through 1988, 5 80%
maturities 1989 through 1990, 6 00%
maturities 1991 through 1994, 6 20%
maturities 1995 through 1998; 6 25%
Sa~d ~nterest shall be evidenced by ~nterest coupons which shall
appertain to sa~d bonds, and which shall be payable in the manner
p~ov~ded and on the dates stated ~n the FORM OF BOND set forth
in th~s 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, ~n the FORM OF BOND set forth ~n th~s
Ordinance
Sectlon 6 That the form of sald 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 lnterest coupons which shall
appertain and be attached lnlt~ally to each of sa~d 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 1974
ON JULY 15, 19~, THE CITY OF DENTON, TEXAS,
hereby promises to pay to bearer hereof the prlnc~pal amount of
FIVE THOUSAND DOLLARS
and to pay ~nterest thereon, from date hereof, at the rate of %
per annum, evidenced by ~nterest coupons payable JANUARY 15, 1975,
and seml-annually thereafter while th~s bond is outstanding
THE PRINCIPAL of thls bond and the ~nterest coupons apper-
taining hereto shall be payable to bearer, in lawful money of the
Un~ted 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 Ks one of a Serles dated as of JULY 15, 1974,
authorized, ~ssued, and dellvered ~n the principal amount of
$2,000,000 for the purpose of providing $1,850,000 FOR IMPROV-
ING AND EXTENDING THE CITY'S WATERWORKS SYSTEM, and providing
$150,000 FOR IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM
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ON JULY 15, 1989,
or on any interest payment date thereafter, any outstanding bonds
of thas Seraes may be redeemed praor to thear scheduled matura-
taes, at the option of said City, an whole, or an part, for the
principal amount thereof and accrued interest thereon to the date
fixed for redemptlon At least thirty days prior to the date
faxed for any such redemptaon saad Caty shall cause a wratten
not~ce of such redemption to be publashed at least once
nanc~al publlcataon published an the Caty of New York, New York
By the date f~xed for any such redemption due provlsaon shall be
made with the "Paying Agent" for the payment of the pranclpal
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 notate of redemptaon ~s publashed and af due prov~saon for
such payment as made, all as provaded above, the bonds whach are
to be so redeemed thereby automatacally shall be redeemed praor
to their scheduled maturltaes, and they shall not bear anterest
after the date f~xed for redemptaon, and they shall not be re-
garded as being outstanding except for the r~ght of the bearer to
receive the redemption prace from the "Paying Agent" out of the
funds provided for such payment
IT IS HEREBY cert~faed and covenanted that this bond has been
duly and validly authorized, assued, and dellvered, that all acts,
conditions, and th~ngs required or proper to be performed, ex~st,
and be done precedent to or ~n the authorlzataon, ~ssuance, and
delivery of this bond have been performed, existed, and been done
· n accordance w~th law, that this bond ~s a specaal obl~gataon,
and that the principal of and anterest on this bond, together wath
other revenue bonds of sa~d Caty, are payable from, and secured
by a first l~en on and pledge of, the Net Revenues of said Clty's
Waterworks and Sewer System
SAID CITY has reserved the right, subject to the restr~ctaons
stated, and adopted by reference, ~n the Ordlnance authorizing
%h~s Ser~es of bonds, to issue addltaonal parity revenue bonds
which also may be made payable from, and secured by a farst laen
on and pledge of, the aforesaid Net Revenues
THE HOLDER HEREOF shall never have the raght to demand pay-
ment of th~s obligation out of any funds raised or to be raased
by taxation
IN WITNESS WHEREOF, th~s bond and the interest coupons apper-
taining hereto have been s~gned w~th the facslmale sagnature of
the Mayor of said City and countersigned w~th the facsimile s~gna-
ture of the C~ty Secretary of saad C~ty, and the official seal of
said City has been duly ~mpressed, or placed an facsimile, on th~s
bond
xxxxxxxx
xxxxxxxx ....
City Secretary Mayor
FORM OF REGISTRATION CERTIFICATE
COMPTROLLER'S REGISTRATION CERTIFICATE REGISTER NO
I hereby certify that th~s bond has been examaned, certl-
faed 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 the County of Denton, State of Texas,
promises to pay to bearer the amount shown on this interest
coupon, ~n 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 th~s ~nterest coupon appertains,
upon presentation and surrender of th~s Interest coupon, at
FIRST NATIONAL CITY BANK, NEW YORK, NEW YORK,
dR, AT THE OPTION OF THE BEARER, AT
FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS
sald amount being ~nterest coming due that day on the bond,
bearing the number hereinafter designated, of that ~ssue of
CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES
1974, DATED JULY 15, 1974 The holder hereof shall never
have the r~ght 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 ~n this Ordinance, shall mean all of sa~d C~ty's pres-
ently outstanding bonds which are payable from, and secured by a
first l~en on and pledge of, the Net Revenues of sa~d C~ty's
Waterworks and Sewer System
(b) That the bonds authorized hereby are parity "Additional
Bonds" as defined ~n the ordlnance passed on July 12, 1960,
authorizing the ~ssuance, sale, and delivery of sa~d C~ty's
Water and Sewer System Revenue Bonds, Series 1960
(¢) That Sections 9 through 25 of sa~d ordinance are hereby
adopted by reference and shall be applicable to the bonds au-
thorized to be ~ssued by th~s Ordinance for all purposes, except
to the extent hereinafter specifically modified and supplemented
The bonds authorized to be ~ssued by this Ordinance and the Out-
standing Bonds are and shall be on a parity and of equal d~gnlty
in all respects, and are and shall be payable from, and secured
by a first l~en on and pledge of, the Net Revenues of sa~d
C~ty's Waterworks and Sewer System
Section 8 That, ~n addition to all other amounts requir-
ed by the ordinances, respectively, authorizing the Outstanding
Bonds, there shall be deposlted into the Interest and Slnklng
Fund (created for the beneflt of said Outstanding Bonds and all
Additional Bonds) the following
(a) such amounts, ~n equal monthly ~nstallments,
made on or before the last day of each month
hereafter, as will be sufflclent to pay the
interest scheduled to come due on sa~d Series
1974 Bonds on the next ~nterest payment date,
and
(b) such amounts, ~n equal monthly ~nstallments,
made on or before the last day of each month
hereafter, commencing in July, 1975, as w~ll
be sufficient to pay the next maturing prin-
cipal of said Ser~es 1974 Bonds
-4-
Section 9 That the Reserve Fund heretofore created for
the benefit of said Outstanding Bonds and all Add~taonal Bonds
now contains money and anvestments not less than the sum of
$387,581 in market value On or before the last day of each
month hereafter, an addltaonal amount of at least $925 shall
be deposited Into the Reserve Fund from the pledged Net Revenues
until an aggregate amount of money and investments at least equal
to $444,000 in market value has been accumulated in the Reserve
Fund Thereafter, 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
$444,000 in market value, but if and whenever the Reserve Fund
ls reduced below said aggregate amount, deposits shall be made
into the Reserve Fund from the f~rst avaalable Net Revenues of
the City's Water and Sewer System (after the required deposits
have been made into the Interest and Sinking Fund) and continued
until such time as the Reserve Fund has been restored to said
aggregate amount, and the C~ty covenants to keep and maintain
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 1974 Bonds, and all Addi-
tional Bonds, in accordance with the procedures, as here~n modi-
fied and supplemented, set forth an the ordinances, respectively,
authorizing the Outstanding Bonds
Section 10 That the bonds authorized by th~s 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
Section 11 That the Mayor of said C~ty is hereby authorized
to have control of said bonds and all necessary records and pro-
ceed~ngs 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 saad bonds, sa~d Comptroller of Public Accounts
(or a deputy designated in writing to act for said Comptroller)
shall manually sign the Comptroller's Registration Certificate
prlnted 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 at will make no use of the proceeds
of the bonds at any time throughout the term of this ~ssue of
bonds which, if such use had been reasonably expected on the
date of delavery 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 KS obligated to comply
wl~h the requirements of the aforesaid Section 103(d) and all
applicable and pertanent Department of the Treasury regulataons
relating to arbatrage 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 Sectaon
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
exasts which requires the holding of the meeting at which thas
Ordinance is passed, such emergency or urgent public necessity
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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 public notice of the time, place, and purpose
of sald meeting was g~ven, all as required by Vernon's Ann
C~v St Article 6252-17
Section 14 That the City Council officially finds, deter-
manes, and declares that sald bonds have been duly advertlsed
for sale as required by the Home Rule Charter of said City, that
sealed bids have been received at a publlc 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
~xas Commerce Bank N A ~Houston, Texas ,
being the best bidder at said public sale, for the principal
amount of sa~d bonds, and accrued ~nterest thereon to the date
of delivery, plus a premium of $ -0-
Section 15 It is further found and determined that the
Official Notice of Sale for sald bonds was duly published on
May 25, 1974, ~n The Bond Buyer, New York, New York, which ~s
a national publication regularly and primarily carrying
nanclal 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 said Offlclal Notlce of Sale, and the afore-
sald publications thereof, are hereby approved and ratified
· n all respects by the City Council
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CERTIFICATE FOR
ORDINANCE AUTBORIZING TIlE 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.Th~ City Council of sa~d City convened in
SPECIAL MEETING ON THE 25TH DAY OF JUNE, 1974,
at the Munlclpal Building (City Hall), and the roll was called
of the duly constituted officers and members of said C~ty Council,
to-w~t
Brooks Holt, City Secretary Bill Neu, Mayor
Morris K~bler Tom D Jester, Jr
Mrs. Lllllan 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 WATER AND SEWER SYSTEM
REVENUE BONDS
was duly introduced for the consideration of said C~ty Council
and read ~n full It was then duly moved and seconded that sa~d
Ordlnance be passed, and, after due d~scusslon, said motion,
carrying with ~t the passage of said Ordinance, prevailed and
carrled by the following vote
AYESAll members of said Clty 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 ~n said C~ty Council's
minutes of said Meeting, that the above and foregoing paragraph
is a true, full, and correct excerpt from said City Council's
mlnutes of said Meetlng pertaining to the passage of said 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 Councll as lndlcated there~n, that each of the officers
and members of said C~ty 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 sa~d officers and members consented, an advance, to
the holding of sa~d Meeting for such purpose, and that said Meet-
lng was open to the publlc, and public not~ce of the t~me, place,
and purpose of said Meeting was given, all as required by Vernon's
Ann. C~v. St Article 6252-17
3. That the Mayor of said City has approved, and hereby ap-
proves, the aforesaid Ordinance, that the Mayor and the City Secre-
tary of sa~d City have duly signed sa~d Ordinance, and that the
Mayor and the City Secretary of sa~d City hereby declare that their
s~gnlng of this Certificate 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
~C~ty-Sec~eta~y ayor
(SEAL) ........................................................
We, the undersigned, being respectively the C~ty 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~~ ~oresald
. City~A~o~n~y ~ /
Bond Attorneys
'-"~ >~ MCCALL,PARKHURST & HORTON
June 25, 1974
Honorable Mayor and Council of
the City of Denton
Denton, Texas
Gentlemen
C~ty of Denton Water and Sewer System
Revenue Bonds, Series 1974, $2,000,000
In compliance w~th Section 9 02 and Section 9 04
of the City Charter of the City of Denton, you are ad-
vised 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
w~th the bonds to bear interest at t rates therein' spec
fled, with such bidder to pay par and accrued interest to
date of delivery for sald bonds, plus a premium of $ - o - ,
~s the lowest and best bid received, and we recommend that
it be accepted
We further certify that we have examined the ordinance
presently placed before the Mayor and Council for the pur-
pose of authorlzlng the ~ssuance of sa~d bonds, and, ~n our
pinion, the sa~d proposed bond ordinance ~s legal, and the
bonds to be issued thereunder will be valid and b~nd~ng
oblIgations of the City, payable from the Net Revenues of
the City's Water and Sewer System
Respectfully,
McCALL, PARKHURST & HORTON