1974-024 ORDINANCE NO 74-24
THE ISSUANCE OF GENERAL OBLIGATION
STREET IMPROVEMENT BONDS
hereinafter authorized were lawfully
an election duly held in sa~d C~ty on
the bonds voted at sa~d elect~on has been
or delivered, and
necessary and advisable to authorize, ~ssue,
~nstallment or series of sa~d bonds, and
bonds hereinafter authorized and deslgnated
be issued and delivered pursuant to
and 1175
CITY OF DENTON HEREBY ORDAINS
the sa~d C~ty's bonds are hereby au-
~n the aggregate principal amount of
PURPOSE OF CONSTRUCTING AND IMPROVING STREETS
PROVIDING DRAINAGE AND FLOOD CONTROL FACILI-
THEREWITH
sa~d bonds shall be deslgnated as the
GENERAL OBLIGATION STREET IMPROVEMENT BONDS,
said bonds shall be dated JULY 15, 1974,
denomination of $5,000 each, shall be numbered
one upward, and shall mature serially on the
eaoh of the years, and ~n the amounts, respec-
~n the following schedule
MATURITY DATE JULY 15
yEARS AMOUNTS
1976 $ 75,000
1977 75,000
1978 75,000
1979 75,000
1980 100,000
1981 100 000
1982 100 000
1983 100000
1984 100000
1985 100~000
1986 100,000
1987 100 000
1988 100,000
1989 100,000
1990 100,000
1991 100,000
1992 100,000
1993 100,000
1994 100,000
-1-
Section 4 That the bonds scheduled to maturo during the
years, respectively, set forth below shall bear interest at the
following rates per annum
maturities 1976 through 1979, 7 25%
maturities 1980 through 1982, 5 25%
maturities 1983, 5 30%
maturities 1984 through 1985, 5 40%
maturities 1986, 5 50%
matur~tles 1987 through 1988, 5 60%
maturities 1989 through 1990, 5 70%
matur~tles 1991, 5 80%
maturltles 1992, 5 90%
maturltles 1993 through 1994, 6 00%
Said interest shall be evidenced by interest coupons which shall
appertaln to sald bonds, and which shall be payable in the manner
provided and on the dates stated ~n the FORM OF BOND set forth
· n th~s Ordinance
Section 5 That said bonds and interest coupons shall be
lssued, shall be payable, may be redeemed prior to their schedul-
ed matur~tles, shall have the characteristics, and shall be sign-
ed and executed (and sa~d bonds shall be sealed), all as provided,
and ~n the manner ~nd~cated, in the FORM OF BOND set forth an th~s
Ordinance
Section 6 That the form of sa~d bonds, including the form
of Reglstrat~on 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 ~nterest coupons which shall
appertain and be attached initially to each of sa~d bonds, shall
be, respectlvely, substantially as follows
FORM OF BOND
NO $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
GENERAL OBLIGATION
STREET IMPROVEMENT BOND
SERIES 1974
ON JULY 15, 19 , THE CITY OF DENTON, Denton County, Texas,
hereby promises to p~ay to bearer hereof the principal 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, 1~/75,
and sem~-annually thereafter while th~s bond ~s outstanding
THE PRINCIPAL of thls bond and the ~nterest coupons apper-
ta~nlng hereto shall be payable to bearer, ~n lawful money of the
Un~ted States of America, wlthout exchange or collection charges
tO the bearer, upon presentation and surrender of th~s bond or
proper lnterest coupon, at the following, which shall constitute
and be defined as the "Paying Agent" for this Ser~es of Bonds
FIRST NATIONAL CITY BANK, NEW YORK, NEW YORK,
OR, AT THE OPTION OF THE BEARER, AT
FIRST NATIONAL BANK IN DALLAS, DALLAS, TE¥~S
THIS BOND ~S one of a Series dated as of JULY 15, 1974,
authorized, ~ssued, and delivered ~n the principal amount of
$1,800,000 FOR THE PURPOSE OF CONSTRUCTING AND IMPROVING STREETS
IN SAID CITY, AND PROVIDING DRAINAGE AND FLOOD CONTROL FACILI-
TIES IN CONNECTION THEREWITH
-2-
ON JULY 15, 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
nancial 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, recited, and covenanted that this
bond has been duly and validly voted, authorized, issued, and de-
livered, that all acts, conditions, and things required or proper
to be performed, exist, and be done precedent to or In the voting,
authorization, issuance, and delivery of this bond have been per-
formed, existed, and been done in accordance with law, that this
bond is a general obligation 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 against all tax-
able property in said City, and have been pledged irrevocably for
such payment, within the limit prescribed by law
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
~ity 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 signature and seal this
XXXXXXXX
comptroller of Public AccoUnts of
the State of Texas
-3-
FORM OF INTEREST COUPON
NO $
ON 15, 19__,
THE CITY OF DENTON, an Denton County, State of Texas,
promises to pay to bearer the amount shown on this interest
coupon, in lawful money of the Un~ted States of America, with-
out exchange or collection charges to the bearer, unless due
provaslon has been made for the redemption prlor to scheduled
maturity of the bond to which th~s interest coupon appertalns,
upon presentation and surrender of th~s interest 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,
saad amount being interest coming due that day on the bond,
bearing the number hereinafter designated, of that issue of
CITY OF DENTON GENERAL OBLIGATION STREET IMPROVEMENT BONDS,
SERIES 1974, DATED JULY 15, 1974
Bond No
xxxxxxxx xxxxxxxx
City Secretary Mayor
Section 7 That a specaal "Interest and Sanklng Fund" is
hereby created solely for the benefit of said bonds, and said
Interest and Sankang Fund shall be established and maintained
by saad C~ty at an official depository bank of saad City Said
Interest and Sankang Fund shall be kept separate and apart from
all other funds and accounts of sa~d C~ty, and shall be used only
for paying the Interest on and principal of said bonds All ad
valorem taxes levied and collected for and on account of said
bonds shall be deposited, as collected, to the credat of saad
Interest and Sinking Fund During each year while any of said
bonds or anterest coupons appertaining thereto are outstanding
and unpaad, the governing body of said Caty shall compute and
ascertain a rate and amount of ad valorem tax which will be suffa-
cient to raise and produce the money required to pay th interest
on said bonds as such interest comes due, and to provide and
maintain a sinking fund adequate to pay the prancapal of such
bonds as such prancipal matures (but never less than 2% of the
oraginal principal a/nount of said bonds as a sinking fund each
year), and saad tax shall be based on the latest approved tax
rolls of saad City, with full allowance beang made for tax de-
linquencies and the cost of tax collection Said rate and amount
of ad valorem tax as hereby lev~ed, and is hereby ordered to be
levied, against all taxable property in said City for each year
while any of said bonds or anterest coupons appertaining thereto
are outstanding and unpaid, and said tax shall be assessed and
collected each such year and deposited to the credit of the afore-
said Interest and Sinking Fund Sa~d ad valorem taxes sufficient
to provide for the payment of the interest on and principal of
said bonds, as such anterest comes due and such principal matures,
are hereby pledged arrevocably for such payment, w~thln the limit
prescribed by law
Section 8 That the Mayor of sa=d City ~s hereby authorized
to have control of said bonds and all necessary records and pro-
ceedings pertaining to said bonds pending thelr delivery and
their lnvestlgatlon, examination, and approval by the Attorney
General of the State of Texas, and their registration by the
Comptroller of Publlc Accounts of the State of Texas Upon
-4-
registration of sa~d 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 sa~d bonds
Section 9 That the City covenants to and w~th 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 ~ssue 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 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 directly or
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 10 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 public notice of the time, place, and purpose
of said meeting was given, all as required by Vernon's Ann
Clv St Article 6252-17
Section 11 That the City Council officially finds, de-
termines, and declares that said bonds have been duly advertis-
ed for sale as required by the Home Rule Charter of sald City,
that sealed blds have been received at a public sale of sa~d
bonds held on June 25, 1974, that all of sa~d bonds are hereby
sold and shall be delivered to a syndicate managed or headed
by ReDubli~ National Bank of Dallas. Dallas. Texas ,
being %he 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 $ -0-
Section 12 It ls further found and determined that the
Official Not~ce of Sale for said 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
nanclal news and municipal bond sale notices, and on May 23,
1974, 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
-5-
CERTIFICATE FOR
ORDINANCE AUTHORIZING TEE ISSUANCE OF GENERAL OBLIGATION
STREET IMPROVEMENT BONDS
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
We, the undersigned officers of sa~d City, hereby certify
as follows
1 The Caty Council of saad City convened an
SPECIAL MEETING ON THE 25TH DAY OF JUNE, 1974,
at the Munaclpal Bualdang (C~ty Hall), and the roll was called
of the duly constatuted officers and members of said City Council,
to-wit
Brooks Holt, City Secretary Bill Neu, Mayor
Morris Klbler Tom D Jester, Jr
Mrs Lalllan Miller George Schneider
and all of sa~d persons were present, except the following
absentees ~11~ ~d ,7~r '
thus constatuting a quorum Whereupon, among other business,
the following was transacted at saad Meeting a wratten
ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION
STREET IMPROVEMENT BONDS
was duly introduced for the consideration of saad City Council
and read in full It was then duly moved and seconded that saad
Ordinance be passed, and, after due dlscussaon, said motaon,
carryang with it the passage of said Ordinance, prevailed and
carried by the followang vote
AYESAil members of saad City Council
shown present above voted "Aye"
NOESNone
2 That a true, full, and correct copy of the aforesaad
Ordinance passed at the Meeting descrabed an the above and fore-
goang paragraph as attached to and follows thas Certlf~cate,
that saad Ordanance has been duly recorded in saad Clty Council's
minutes of said Meetang, that the above and foregoang paragraph
is a true, full, and correct excerpt from saad City Council's
minutes of saad Meetang pertaanlng to the passage of said Ordi-
nance; that the persons named ~n the above and foregoang paragraph
are the duly chosen, qualaf~ed, and acting offacers and members of
saad Caty Council as indicated therein, that each of the officers
and members of said City Council was duly and sufflcaently notl-
faed offacaally and personally, an advance, of the time, place,
and purpose of the aforesaid Meeting, and that sa~d Ordanance
would be introduced and consldered for passage at sald Meetlng,
and each of saad officers and members consented, in advance, to
the holding of said Meetang for such purpose, and that sa~d Meet-
ing was open to the public, and public notace of the tame, 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 sa~d City has approved, and hereby ap-
proves, the aforesaid Ordanance, that the Mayor and the C~ty Secre-
tary of saad City have duly sagned said Ordinance, and that the
Mayor and the Clty Secretary of saad City hereby declare that their
slgnlng of this Certaflcate shall constitute the signing of the
attached and followlng copy of said Ordinance for all purposes
SIGNED AND SEALED the 2§th day of June, 1974
~ - City Secretary Mayor
(SEAL) ........................................................
We, the undersigned, belng respectively the City Attorney
and the Bond Attorneys of the City of Denton, Texas, hereby cer-
tlfy that we prepared and approved as to legalaty the attached
and following Ordlnance prior to 1ts pa. sa~ge as aforesaid
Ci~ Attorney
Bond Attorneys
LAW OFFICES
MCCALL PARKHURST ~ HORTON
14OO JVJERCANT]LE BANK BUILDING
June 25, 1974
Honorable Mayor and Council of
the City of Denton
Denton, Texas
Gentlemen
City of Denton General Obligation Street
Improvement Bonds, Series 1974, $1,800,000
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 ~ssue of bonds have been
tabulated and that we find that the b~d of a syndicate
managed or headed by the following
with the bonds to bear interest at t~e rates therein'speci-
fied, with such bidder to pay par and accrued interest to
date of delivery for said bonds, plus a premium of $ - ~-- ,
is 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 authorizing the issuance of said bonds, and, in our
opinion, the said proposed bond ordinance is legal, and the
bonds to be issued thereunder w~ll be valid and binding
obligations of the City payable from ad valorem taxes with-
in the llmlt prescribed by law
Respectfully,
McCALL, PARKHURST & HORTON
Paul B Hortoh