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1972-058 ORDINANCE NO 72-~ ORDINANCE AUTHORIZING THE ISSUANCE OF CERTIFICATES OF OBLIGATION THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WHEREAS, the Certificates of Obligation authorized by this Ordinance are to be issued, sold, and delIvered pursuant to Vernon's Article 2368a 1 THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS, Section 1 That the said City's Certificates of Obli- gation (hereinafter sometimes called "Certificates") are hereby authorIzed to be issued in the aggregate principal amount of $985,000, FOR THE PURPOSE OF PAYING CONTRACTUAL OBLIGATIONS IN- CUR_RED FOR THE PURCHASE OF LAND NEEDED FOR FLOOD CONTROL AND STORM WATER DRAINAGE IMPROVEMENTS, SUCH LAND BEING DESCRIBED AS FOLLOWS four tracts aggregating approximately 204 288 acres out of the Melsenhelmer Survey, Abstract No 810, Denton County, Texas, and three tracts aggregating approxlmately 85 214 acres out of the Beaumont Survey, Abstract No 31, Denton County, Texas, constituting a contiguous area of land containing approximately 289 502 acres Section 2 That said Certificates shall be designated as the CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES 1972 Section 3 That sa~d Certificates shall be dated DECEMBER 15, 1972, shall be an the denomination of $100,000 each, except Certificate No 1 for $85,000, shall be numbered consecutlvely from one upward, and shall mature serially on the maturity date, in each of the years, and in the amounts, respect- l~ely, as set forth in the following schedule MATURITY DATE DECEMBER 15 YEARS AMOUNTS 1982 $ 85,000 1983 100,000 1984 100,000 1985 100,000 1986 100,000 1987 100,000 1988 100,000 1989 100,000 1990 100,000 1991 100,000 Section 4 That the Certificates shall bear interest at the rate of 4-1/2% per annum to DECEMBER 15, 1973, and at the rate of 7% per annum thereafter, evidenced by interest coupons which shall appertain to said Certificates, and which shall be payable an the manner provided and on the dates stated an the FORM OF CERTIFICATE set forth in this Ordlnance Section 5 That sa~d Certificates and interest coupons shall be ~ssued, shall be payable, may be redeemed prior to their s~heduled maturities, shall have the characterlstlcs, and shall -1- be signed and executed (and said Certificates shall be sealed), all as provided, and in the manner indicated, an the FORM OF CERTIFICATE set forth an this Ordinance Sectaon 6 That the form of said Certificates, cludlng the form of Registration Certificate of the Comptroller of Publac Accounts of the State of Texas to be printed and en- dorsed on each of sa~d Certificates, and the form of the afore- sa~d anterest coupons which shall appertain and be attached initially to each of sa~d Certificates, shall be, respectively, substantially as follows FORM OF CERTIFICATE NO $ UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON CERTIFICATE OF OBLIGATION SERIES 1972 ON DECEMBER 15, 19 , THE CITY OF DENTON, DENTON COUNTY, TEXAS, hereby promlse~--to pay to bearer hereof the pr~ncapal amount of THOUSAND DOLLARS and to pay ~nterest thereon, from date hereof, at the rate of 4-1/2% per annum to DECEMBER 15, 1973, and at the rate of 7% per annum thereafter, evidenced by interest coupons payable DECEMBER 15, 1973, and semi-annually thereafter whale thas Cert~facate is outstandang THE PRINCIPAL of this Certificate and the interest coupons appertaining hereto shall be payable to bearer, in law- ful money of the Un~ted States of America, without exchange or collectaon charges to the bearer, upon presentation and surren- der of this Certafacate or proper ~nterest coupon, at the follow- lng, whach shall constitute and be defaned as the "Paying Agent" for th~s Series of Certificates FIRST STATE BANK, DENTON, TEXAS THIS CERTIFICATE as one of a Series dated as of DECEMBER 15, 1972, authorlzed, ~ssued, and delivered in the prin- cipal amount of $985,000 FOR THE PURPOSE OF PAYING CONTRACTUAL OBLIGATIONS INCURRED FOR THE PURCHASE OF LAND NEEDED FOR FLOOD CONTROL AND STORM WATER DRAINAGE IMPROVEMENTS, SUCH LAND BEING DESCRIBED AS FOLLOWS four tracts aggregating approximately 204 288 acres out of the Me~senhe~mer Survey, Abstract No 810, Denton County, Texas, and three tracts aggregating approximately 85 214 acres out of the Beaumont Survey, Abstract No 31, Denton County, Texas, constituting a contiguous area of land containing approximately 289 502 acres ANY OUTSTANDING CERTIFICATES of this Series may be redeemed prior to their scheduled maturities, on any date, at the option of sa~d City, ~n whole, or ~n part, for the prlnca- pal amount thereof and accrued ~nterest thereon to the date -2- fixed for redemption At least thirty days prior to the date fixed for any such redemption said C~ty shall cause a written notice of such redemption to be delivered to the Paying Agent, and by the date fixed for any such redemption due provision shall be made with the "Paying Agent" for the payment of the prlnc~pal amount of the Certificates which are to be so redeemed and ac- crued lnterest thereon to the date fixed for redemption If such written notice of redemption is delivered and if due pro- vision for such payment is made, all as provided above, the Certificates which are to be so redeemed thereby automatically shall be redeemed prior to their scheduled maturities, and they shall not bear ~nterest after the date f~xed for redemption, and they shall not be regarded 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 Certificate has been duly and validly authorized, ~ssued, and de- livered, that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authori- zation, issuance, and delivery of th~s Certificate have been per- formed, existed, and been done in accordance with law, that th~s Certificate is a general obligation of said City, issued on the full faith and credit thereof, and that annual ad valorem taxes sufficient to provide for the payment of the interest on and prin- cipal of this Certificate, as such ~nterest comes due and such principal matures, have been lev~ed and ordered to be lev~ed against all taxable property in said City, and have been pledged irrevocably for such payment, within the limit prescribed by law IN WITNESS WHEREOF, th~s Certificate and the interest coupons appertaining hereto have been signed with the facsimile signature of the Mayor of sa~d City and countersigned w~th the facsimile signature of the City Secretary of said City, and the official seal of said City has been duly ~mpressed, or placed in facsimile, on this Certificate xxxxxxxx xxxxxxxx City Secretary Mayor FORM OF REGISTRATION CERTIFICATE COMPTROLLER'S REGISTRATION CERTIFICATE REGISTER NO I hereby certify that this Certificate of Obligation has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this Certificate of Obligation 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 DENTON COUNTY, TEXAS, promises to pay to bearer the amount shown on this interest -3- coupon, in 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 Certificate to which this Interest coupon apper- tains, upon presentation and surrender of this interest coupon, at FIRST STATE BANK, DENTON, TEXAS, said amount being interest coming due that day on the Certlf~cate, bearing the number hereinafter designated, of that issue of CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES 1972, DATED DECEMBER 15, 1972, Certificate No xxxxxyxx xxxxxxxx City Secretary Mayor Section 7 That a special "Interest and Sinking Fund" is hereby created solely for the benefit of said Certlflcates, and sa~d Interest and Sinking Fund shall be established and maln- tanned by said City at an official depository bank of said City Sa~d Interest and Slnklng Fund shall be kept separate and apart from all other funds and accounts of said City, and shall be used only for paying the ~nterest on and principal of said Certificates All ad valorem taxes levied and collected for and on account of sa~d Certificates shall be deposlted, as collected, to the credit of said Interest and Sinking Fund During each year while any of said Certificates or lnterest coupons appertaining thereto are outstandlng and unpaid, the governing body of said City shall com- pute and ascertaln a rate and amount of ad valorem tax which will be sufficient to raise and produce the money required to pay the Interest on sa~d Certlflcates as such interest comes due, and to provide and malntaln a s~nklng fund adequate to pay the principal of such Certificates as such principal matures (but never less than 2% of the orlglnal prlnclpal amount of said Certificates as a sink- lng fund each year), and said tax shall be based on the latest approved tax rolls of said City, with full allowance being made for tax delinquencies and the cost of tax collection Said rate and amount of ad valorem tax is hereby levied, and is hereby or- dered to be levied, against all taxable property in said City for each year while any of said Certificates or interest coupons apper- taining thereto are outstanding and unpaid, and sald tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Slnklng Fund Said ad valorem taxes sufflc~ent to provide for the payment of the interest on and prin- cipal of said Certificates, as such interest comes due and such principal matures, are hereby pledged irrevocably for such payment, w~th~n the l~m~t prescrlbed by law Section 8 That the Mayor of said City is hereby au- thorlzed to have control of said Certificates and all necessary records and proceedings pertaining to said Certificates pending their dellvery and their investigation, examination, and approval by--the Attorney General of the State of Texas, and their regis- tratlon by the Comptroller of Public Accounts of the State of Texas Upon registration of said Certificates, 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 sald Certlflcates, and t~e seal of sa~d Comptroller shall be ~mpressed, or placed in fac- sim~le, on each of said Certificates Section 9 That the City covenants to and with the purchasers of the Certlflcates that it will make no use of the proceeds of the Certificates at any time throughout the term of th~s ~ssue of Certificates which, if such use had been reasonably -4- expected on the date of delivery of the Certificates to and payment for the Certificates by the purchasers, would have caused the Cert~flcates to be arbitrage bonds w~thln the mean- lng of Section 103(d) of the Internal Revenue Code of 1954, as amended, or any regulations or rullngs pertaining thereto, and by th~s covenant the C~ty ~s obligated to comply with the re- quirements of the aforesald Section 103(d) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds The City further covenants the the proceeds of the Certlflcates wall not otherwise be used d~rectly or an- directly so as to cause all or any part of the Certificates to be or become arbltrage bonds w~thln the meaning of the afore- said Sectlon 103(d), or any regulations or rulings perta~nlng thereto Section 10 That it is hereby officially found and de- termined that a case of emergency or urgent public necessity exists which requires the holding of the meeting at which th~s Ordinance ~s passed, such emergency or urgent public necessity being that the proceeds from the sale of sa~d Certificates are required as soon as possible and w~thout delay for necessary and urgently needed public ~mprovements, and that sa~d meeting was open to the public, and public not~ce of the t~me, place, and purpose of sa~d meeting was g~ven, all as required by Vernon's Ann C~v St Article 6252-17 Section 11 That sa~d Certificates are hereby sold and shall be delivered to for cash for the par value thereof and accrued interest thereon to date of dellvery -5- GENERAL CERTIFICATE THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON We, the undersigned officers of said City, hereby cer- tify as follows 1 That this certificate is executed for and on be- half of said City with reference to the issuance of the proposed CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES 1972, DATED DECEMBER 15, 1972, in the principal amount of $985,000 2 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 authorizing the issuance of the most recently dated, issued, and outstanding bonds of said City shown on "Exhibit A," which is attached to this certificate 3 That no litigation of any nature has ever been filed pertaining to, affecting, questioning, or contesting (a) the ordinance which authorized said City's proposed Cer- tificates described in paragraph 1 of this certificate, (b) the issuance, execution, delivery, payment, security, or validity of said proposed Certificates, {c) the authority of the governing body and the officers of said City to issue, ex- ecute, and deliver said Certificates, (d) the validity of the corporate existence of said City, (e) the current Tax Roils of said City, or (f) the Home Rule Charter of said City, and that no litigation is pending pertaining to, affecting, questioning, or contesting the current boundaries of said City 4 That attached to this certificate and marked "Ex- hibit A" is a true, full, and correct schedule and statement of the aforesaid proposed CertifIcates, and of all presently out- standing tax indebtedness of said City 5 That the currently effective ad valorem Tax Rolls of said City are those for the year 1972, being the most recent- ly approved Tax Rolls of said City, that said City has caused the taxable property in said City to be assessed as required by law, that the Board of Equalization of said City has equalized and approved the valuation of taxable property in said City for said year, that the Tax Assessor of said City has duly verified the aforesaid Tax Rolls, and said Board of Equalization has flnally approved the same, and that the assessed value of tax- able property in said City for said year, according to the afore- said Tax Rolls, as delivered to the C~ty Secretary of said City and ~lnally _approved and recorded by the governing body of said City, lS $_~j~J_~ SIGNED AND SEALED the 19th day of December, 1972 ~/~ty~Secretary ~Mayor (SEAL) "EXHIBIT A" Certifloates of Obligation, Series 1972, dated 12/15/72, to be outstanding in the principal amount of $985,000, bearing inter- est, and maturing as set forth in the Ordinance authorizing sa~d Certificates General Obligation Bonds, Series 1960, dated 7/15/60, now out- standing in the principal amount of $325,000, bearing interest, and maturing in the amounts on July 15 of the years, as follows 3-3/4% 25M-73/78 3 85% 25M-79/85 Street Improvement Bonds, Series 1962, dated 3/15/62, now out- standing in the principal amount of $300,000, bearing interest, and maturing ~n the amounts on March 15 of the years, as follows 2-3/4% 20M-73/74, 3% 20M-75/78, 3-1/8% 20M-79/83, 3 20% 20M-84/87 General Obligation Bonds, Ser~es 1963, dated 3/15/63, now out- standing in the principal amount of $320,000, bearing interest, and maturing in the amounts on March 15 of the years, as follows 3% 20M-73/80, 3.20% 20M-81/86, 2-1/4% 20M-87/88 Civic Center Warrants, Series 1963, dated 4/15/63, now outstand- ing in the principal amount of $135,000, bearing interest, and maturing in the amounts on April 15 of the years, as follows 2 85% 35M-73, 40M-74/76 General Obligation Bonds, Series 1964, dated 7/15/64, now out- standing in the principal amount of $615,000, bearing interest, and maturing in the amounts on July 15 of the years, as follows 3% 65M-73/75, 3 10% 65M-76/78, 3 15% 60M-79, 55M-80, 3.20% 55M-81/82 Park Improvement Bonds, Series 1964, dated 7/15/64, now outstand- ing in the principal amount of $120,000, bearing interest, and maturing in the amounts on July 15 of the years, as follows 3% 10M-73/75, 3 10% 10M-76/78, 3 15% 15M-79/80, 3 20% 15M-81/82 General Obligation Bonds, Series 1966~ dated 1/15/66, now out- standing in the principal amount of $840,000, bearing interest, and maturing in the amounts on January 15 of the years, as follows 3 80% 60M-73/73/76, 3-3/4% 60M-77/82, 3-1/2% 60M-83/86 General Obligation Bonds, Series 1967, dated 11/15/67, now out- standing in the principal amount of $510,000, bearing ~nterest, and maturing ~n the amounts on May 15 of the years, as follows 4-1/4% 30M-73/89 GeNeral Obligation Bonds, Series 1968, dated 2/1/68, now out- standing in the principal amount of $825,000, bearing ~nterest, and maturing ~n the amounts on February 1 of the years, as follows 5% 50M-73/74, 4-1/8% 50M-75, 4% 50M-76/78, 4 10% 50M-79/80, 4 20% 50M-81/82, 4-1/4% 50M-83, 4 30% 50M-84/87, 75M-88 General Obligation Bonds, Ser~es 1969, dated 4/15/69, now out- s~andlng in the prlnc~pal amount of $1,105,000, bearing ~nter- est, and maturing ~n the amounts on April 15 of the years, as follows 6-1/2% 60M-73 4 60% 60M-74/75, 4 70% 60M-76/77, 4-3/4% 60M-78 4 80% 60M-79 4 90% 60M-80 65M-81, 5% 70M-82/84, 5 10% 70M-85/87, 5 20% 70M-88/89 General Obllgat~on Bonds, Series 1970, dated 9/15/70, now out- standing in the principal amount of $950,000, bearing interest, and maturing ~n the amounts on April 15 of the years, as follows 7% 50M-73/75, 6% 50M-76, 5-1/4% 50M-77/$1, 5-1/2% 50M-82/83, 5 65% 50M-84, 5 80% 50M-85, 5.90% 50M-86, 6% 50M-87, 6 10% 50M-88, 6 20% 50M-89/90, 5% 50M-91 Airport Improvement Warrants, Series 1966, dated 12/1/66, now outstanding ~n the prlnc~pal amount of $85,000, bearing inter- est, and maturing in the amounts on December 1 of the years, as follows 4-1/2% 8M-73, 9M-74/75, 10M-76/78, 11M-79, 12M-80, 6M-81 CERTIFICATE FOR ORDINANCE AUTHORIZING THE ISSUANCE OF CERTIFICATES OF OBLIGATION 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 C~ty convened ~n REGULAR MEETING ON THE 19TH DAY OF DECEMBER, 1972, at Ithe Municipal Bulldlng (City Hall), and the roll was called of the duly constituted officers and members of said C~ty Council, to-wit Brooks Holt, City Secretary Blll Neu, Mayor Tom D Jester, Jr Harold L Ramey Morr~s K~bler George Schneider and all of sa~d persons were present, except the following absentees , thus constituting a quorum Whereupon, among other bus~ness, the following was transacted at said Meeting a written ORDINANCE AUTHORIZING THE ISSUANCE OF CERTIFICATES OF OBLIGATION was duly introduced for the consideration of said C~ty Council and read in full It was then duly moved and seconded that sa~d Ordinance be passed, and, after due discussion, said motion, carrying with ~t the passage of sa~d Ordinance, prevailed and carried by the following vote AYESAll 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 ~n the above and fore- going paragraph ls attached to and follows th~s Certificate, that said Ordinance has been duly recorded ~n sa~d 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 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 sa~d City Council was duly and sufficiently not~- fled 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, a~d each of said officers and members consented, in advance, to the holding of sa~d Meeting for such purpose, and that sa~d Meet- lng was open to the public, and public notice of the t~me, place, and purpose of sa~d 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 approves, the aforesaid Ordinance, that the Mayor and the City Secretary of sa~d City have duly s~gned sa~d Ordinance, and that the Mayor and the C~ty Secretary of said City hereby declare that their s~gn~ng of this Certlf~cate shall constltute the signing of the attached and following copy of said Ordinance for all pur- poses SIG ND SEALED the 19th day of Dece~, er, 1972 ' Mayor (SEAL) .................................................... I, the undersigned C~ty Attorney of the City of Denton, Texas, hereby certify that I approved as to legality the attached and following Ordinance prior to Its ~g~a~orTsald ' ' Clt~ttorney ~