1972-015 ORDINANCE NO 72-15
ORDINANCE AUTHORIZING THE ISSUANCE OF ELECTRIC REVENUE BONDS
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WHEREAS, the bonds hereznafter authorized were duly and
favorably voted, as required by the Constztutzon and laws of the
State of Texas, at an election held in said City on the 9th day of
December, 1967, and
WHEREAS, out of the $15,000,000 Electrzc Revenue Bonds
voted at said election, $4,500,000 thereof have been zssued and
delzvered, being all of Serzes 1968, and Series 1970, and
WHEREAS, the bonds hereznafter authorized are to be
xssued and delivered pursuant to Vernon's Artzcles 1111 through
1118, and the Home Rule Charter of sazd Czty
THE COUNCIL C~ THE CITY OF DENTON HEREBY ORDAINS
Section 1 That said C~ty's bonds, to be designated
the "CITY OF DENTON ELECTRIC REVENUE BONDS, SERIES 1972~" are
hereby authorzzed to be issued and delivered zn the prznclpal
amount of 86,000,000, FOR THE PURPOSE OF IMPROVING AND EXTENDING
THE CITY'S ELECTRIC LIGHT AND POWER SYSTEM,
Sectzon 2 That said bonds shall be dated MAY 1,
1972, shall be in the denominatzon of $5,000 EACH, shall be num-
bered consecutzvely from 1 THROUGH 1200, and shall mature serially
on NOVEMBER 1 in each of the years, and zn the amounts, respect-
ively, as set forth in the followzng schedule
,,YE, ARS AMOUNTS, YEARS AMOUNTS YEARS AMOUNTS,
1973 $240,000 1982 $240,000 1990 ~240,000
1974 240,000 1983 240,000 1991 240,000
1975 240,000 1984 240,000 1992 240,000
1976 240,000 1985 240,000 1993 240,000
1977 240,000 1986 240,000 1994 240,000
1978 240,000 1987 240,000 1995 240,000
1979 240,000 1988 240,000 1996 240,000
1980 240,000 1989 240,000 1997 240,000
1981 240,000
Said bonds may be redeemed prior to their scheduled maturitzes,
at the option of said City, on the dates stated, and in the man-
ner provided, in the FORM OF BOND set forth zn this Ordznance
Section 3 That the bonds scheduled to mature during
the years, respectively, set forth below shall bear znterest from
their date, until maturity or redemption, at the followzng rates
per annum
maturities 1973 through 1982, 6 0%
maturities 1983, 5 90%
maturities 1984, 4 754
maturities 1985, 4 904
maturities 1986, 5 0%
maturities 1987 through 1988, 5 104
maturities 1989 through 1990, 5 204
maturities 1991 through 1993, 5 25%
maturities 1994 through 1997, 4 0%
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Said interest shall be evidenced by interest coupons which shall
appertain to said bonds, and which shall be payable on the dates
stated in the FORM OF BOND set forth in this Ordznance
Section 4 That said bonds and interest coupons shall
be payable, shall have the characteristics, and shall be signed
and executed (and said bonds shall be sealed), all as provided,
and in the manner indicated, in the FORM OF BOND set forth in this
Ordinance
Section 5 That the form of said bonds, including the
form of Registrat~on Certlflcate 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 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 ELECTRIC REVENUE BOND
SERIES 1972
ON NOVEMBER 1, 19__, the CITY OF DENTON, in the County
of Denton, State of Texas, promises to pay to bearer the principal
amount of
FIVE THOUSAND DOLLARS
and to pay interest thereon, from the date hereof, at the rate of
% per annum, evidenced by ~nterest coupons payable NOVEMBER 1,
~ and semi-annually thereafter on each MAY 1 and NOVEMBER 1
while this bond zs outstanding The principal of this bond and
tbs interest coupons appertazning 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 interest coupon, at the FIRST STATE BANK OF
DENTON, DENTON, TEXAS, or, at the option of the bearer, at the
FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS, which places shall be
the paying agents for this Series of bonds
THIS BOND is one of a Series of bonds dated MAY 1,
1972, issued in the principal amount of $6,000,000, FOR THE PURPOSE
OF IMPROVING AND EXTENDING THE CITY'S ELECTRIC LIGHT AND POWER
SYSTEM°
ON NOVEMBER 1, 1987, OR ON ANY INTEREST PAYMENT DATE
THEREAFTER, any outstanding bonds of this Serzes may be redeemed
prior to their scheduled maturities, at the optzon 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
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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 financial publication publzshed in the City of New York,
New York By the date fixed for any such redemption due provision
shall be made with the paying agents for the payment of the princi-
pal amount of the bonds which are to be so ~edeemed and accrued
interest thereon to the date fixed for redemption If such written
notice of redemption is published and if due provision for such pay-
ment 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 regarded as being
outstanding except for the purpose of being paid by the paying
agents with the funds so provided for such payment
IT IS HEREBY certified, recited, and covenanted that
this bond has been duly and validly issued and delivered, that all
acts, conditions, and things required or proper to be performed,
exist, and be done precedent to or in the issuance and delivery of
this bond have been performed, existed, and been done in accordance
with law, and that the interest on and principal of this bond, end
the Series of which it is ~ part, together with other outstanding
electric revenue bonds of said,City, are secured by and payable
from a first lien on and pledge of the Net Revenues of the City's
Electric Light and Power System
SAID CITY has reserved the right, suboect to the
restrictions adopted by reference in the Ordinance authorizing
this Series of bonds, to issue additzonal parity revenue bonds
which also may be secured by and made payable from a first lien
on and pledge of the Net Revenues of sazd City's Electric Light
and Power System
FURTHER, SAID CITY has reserved the right, subject to
the restrictions 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 secured by and
made payable from a first lien on and pledge of the Net Revenues
of said ~ombined Electric Light, Waterworks, and Sanitary Sewer
Systems
THE HOLDER HEREOF shall never have the right to demand
payment of this obligation out of any funds raised or to be razsed
by taxation
IN WITNESS WHEREOF, th~s bond and the interest coupons
appertaining hereto have been signed with the facsimile signature
of the Mayor of sa~d City and countersigned with the facsimile
signature of the City Secretary of said City, and the official seal
of said City has been duly impressed, or placed in facslmile, on
this bond
XXXXXXXX XXXXXXXX
City Secretary, City of Denton Mayor, City of Denton
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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
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 this interest coupon,
in lawful money of the United States of America, without exchange
or collection charges to the bearer, unless due provision has been
made for the redemptzon prior to maturity of the bond to which this
interest coupon appertains, upon presentation and surrender of thzs
interest coupon, at the FIRST STATE BANK OF DENTON, DENTON, TEXAS,
or, at the option of the bearer, at the FIRST NATIONAL BANK IN
DALLAS, DALLAS, TEXAS, said amount being interest due that day on
the bond, bearing the number hereinafter designated, of that issue
of CITY OF DENTON ELECTRIC REVENUE BONDS, SERIES 1972, DATED
MAY 1, 1972 The holder hereof shall never have the rzght
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 6 That the term "Outstanding Bonds, as used
herein, shall mean the outstanding bonds of the following issues
of said City.
Electric Revenue Bonds Series 1954,
authorized by ordinance dated October 12, 1954,
Electric Revenue Bonds. Ser~es 1955,
authorzzed by ordinance dated May 15, 1955,
Electric Revenue Bonds. Series B, 1955,
authorized by ordinance dated November 8, 1955,
Electric Revenue Bonds. Series 1961,
authorized by ordinance dated June 13, 1961,
Electric Revenue Bonds Series 1965,
authorized by ordinance dated January 19, 1965,
Electric Revenue Bonds Series 1968,
authorized by ordinance dated January 23, 1968
Electric Revenue Bonds Ser~es 1970,
authorized by ordinance dated September 22, 1970
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\The Series 1972 Bonds authorized hereby are parity '~dditzonal
Bonds" as defined and permitted in Section 22 of the aforesaid
ordinance dated October 12, 1954, and Sections 11 through 29 of
said ordinance dated October 12, 1954, are adopted by reference
and shall be applicable to said Series 1972 Bonds for all pur-
poses, except to the extent hereinafter speczfically modzfted and
supplemented The Series 1972 Bonds and the Outstandzng Bonds are
and shall be equally and ratably secured by and payable from a
first lien on and pledge of the Net Revenues of said City's Electric
Light and Power System, and all of said oblzgatzons shall be on a
parity and of equal dzgnity in all respects
Section 7 That, in addition to all other amounts re-
quired by the ordinances, respectively, authorizing the issuance
of the Outstanding Bonds, there shall be deposited into the Inter-
est and Redemption Fund, created for the benefit of sazd Outstand-
ing Bonds and all Additional Bonds, the followzng
(a) such amounts, zn equal monthly installments,
made on or before the 10th day of each month hereafter,
as will be sufficient to pay the interest scheduled to
come due on said Series 1972 Bonds on the next interest
payment date, and
(b) such amounts, in equal monthly installments,
made on or before the 10th day of each month, commenc-
ing November 10, 1972, as will be sufficient to pay the
next maturing principal of sazd Series 1972 Bonds
Section 8 That, in addition to all other amounts re-
quired by the ordinances, respectively, authorzzzng the issuance
of the Outstanding Bonds, there shall be deposited znto the Reserve
Account in the Interest and Redemptzon Fund, created for the bene-
fit of said Outstanding Bonds and all Addztional Bonds, on or be-
fore the 10th day of each month hereafter, the sum of at least
$7,320 until the aggregate amount of $1,805,200 shall have been
accumulated in said Reserve Account Thereafter sazd aggregate
amount shall be maintained therezn, for the benefit of the Out-
standing Bonds, the Series 1972 Bonds, and all Addztional Bonds,
in accordance with the procedures, as herein modified and supple-
mented, set forth in the ordinances authorzzing the Outstanding
Bonds
Section 9 That said bonds 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 oblzgatzons out of
any funds raised or to be raised by taxation
Section 10 That the Mayor of said City is hereby
authorized to have control of said bonds and all necessary records
and proceedings pertaining to sazd bonds pendzng their delzvery
and their investigatzon, examinatzon, and approval by the Attorney
General of the State of Texas, and thezr registration by the
Comptroller of Public Accounts of the State of Texas Upon regzs-
tration of said bonds, said Comptroller of Public Accounts (or a
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~deputy designated in writing to act for said Comptr~ller) shall
manually sign the Comptroller's Registration Certif:.cate printed
and endorsed on each of said bonds, and the seal of said
Comptroller shall be impressed, or placed in facsim~.le, on each
of said bonds
Section 11 That the proceeds of the Ser~.es 1972 Bonds
shall be used solely for making zmprovements and ex~:enszons of
the City's Electric Light and Power System which ha'me been de-
termined by the City Council to be necessary and ec~nomzcally
feasible
Section 12 That the City hereby covenan:s that the
proceeds from the sale of the bonds will be used as soon as
practicable for the purpose for whzch the bonds are issued, that
such proceeds will not be invested in any securitze or oblz-
gations except for the temporary perzod pending suc use, and
that such proceeds will not be used directly or znd rectly so as
to cause all or any part of the bonds to be or becone "arbitrage
bonds" within the meaning of Section 103(d) of the nternal
Revenue Code of 1954, as amended, or any regulatzon or rulmngs
prescribed or made pursuant thereto
Section 13 That it ms hereby offmciallM found and de-
termined that a case of emergency or urgent public necessity
exists which requires the holding of the meetzng aG which this
Ordinance is passed, such emergency or urgent public necesszty
being that the proceeds from the sale of the bonds/are required
as soon as possible and without delay for necessar' and urgently
needed public improvements, and that samd meeting as open to
the public, and publmc notice of the time, place, nd purpose
of said meeting was given, all as required by Vern n's Ann
Civ St Article 6252-17
Section 14. That the City Council offic~ally finds,
determines, and declares that said bonds have been duly advertis-
ed for sale as requmred by the Home Rule Charter oJ said City,
that sealed bids have been recemved at a public sale of said bonds
held on April 25, 1972, that all of said bonds are hereby sold
and shall be delivered to a syndmcate mmnaged or headed by
A. G. Becket & Co., Inc., being the best bidder at said public
sale, for the principal amount of said bonds, and ~ccrued in-
terest thereon to the date of delivery, plus a pre~ium of
$4~9.63
Section 15. It is further found and det,~rmined that
the Official Notice of Sale for said bonds was dul', published on
March 2], 1972, in the Bond Buyer, New York, New Yi~rk, which ms
a national publmcation regularly and primarily car~ytng financial
news and municipal bond sale notzces, and on March 21, 1972, in
the "Denton Record-Chronicle", which has been desii~nated as the
official newspaper of the City of Denton The for~ and substance
of said Official Notice of Sale, and the aforesaid publications
thereof, are hereby approved and ratified in all r~spects by the
City Council.
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CERTIFICATE FOR
ORDINANCE AUTHORIZING THE ISSUANCE OF ELECTRIC RE~NUE BONDS
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
We, the undersigned officers of said City, her,~by certify
as follows
1. The City Council ~ said City convened in
REGULAR MEETING ON THE 25TH DAY OF APRIL, [972,
at the Municipal Building, and the roll was called ~)f the duly
constituted officers and members of said City Council, to-wit
Brooks Holt, City Secretary Bmll Neu, Mayor
Hugh M. Ayer Tom D Jester, Ir
R. L. (Bob) Chambers Harold L Ramey
and all of said persons were present, except the fo[low~ng
absentees .. . ,
thus constituting a quorum Whereupon, among other business,
the following was transacted at said Meeting a written
ORDINANCE AUTHORIZING THE ISSUANCE OF ELECTRIC RE~NUE BONDS
was duly introduced for the consideration of samd City Council
and read in full It was then duly moved and seconded that said
Ordinance be passed, and, after due dmscussmon, saz[ motion,
carrying with it the passage of said Ordinance, pre ,ailed and
carried by the following vote
AYES All 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 descrmbed mn the ab)ye and fore-
going paragraph is attached to and follows this Certzficate,
that said Ordinance has been duly recorded mn said 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 cf said Ordz-
nance, that the persons named in the above and foregomng paragraph
are the duly chosen, qualified, and acting offlcer~ and members of
said City Council as indicated therein, that each cf the offmcers
and members of said City Council was duly and suffJ.ctently noti-
fied officially and personally, in advance, of the time, place,
and purpose of the aforesald Meetmng, and that saz~ Ordmnance
w~ld be introduced and considered for passage at ~ald Meetmng,
and each of said officers and members consented, ir. advance, to
the holding of said Meeting for such purpose, and that said Meet-
ing was open to the publlc, and publmc notice of t[.e time, place,
and purpose of said meeting was gmven, all as requJ.red by Vernon's
Ann. Civ St Article 6252-17.
3. That the ~ayor of said City has approved and hereby
approves, the aforesaid Ordmnance, that the Mayor ~nd the City
Secretary of samd City have duly smgned said Ordmn~nce, and that
the Mayor and the City Secretary of said Czty herel~y declare that
their smgning of this Certificate shall constitute the sign%ng of
the attached and following copy of sa~d Ordznance !or ali pur-
poses.
SIGNED AND SEALED the 25th day of April, 1972
~ Mayor
(SEAL) .......................................................
We, the underszgned, bezng respectively the C~ty Attorney
and the Bond Attorneys of the Czty of Denton, Texa~, hereby cer-
tify that we prepared and approved as to legalmty 2he attached
and following Ordz~ance prior to mts~ppa~s~ ~esaid
Bond ~ttorneys