20-917ORDINANCE NO. 20-20-917
AN ORDINANCE
DiRECTnJG THE PUBLICATION OF NOTICE OF INTENTION TO ISSUE
$37, 120,000 1N PRINCIPAL AMOUNT OF CERTIFICATES OF OBLIGATION OF THE CITY OF
DENTON FOR WASTEWATER SYSTEM AND ELECTRIC SYSTEM PROJECTS;
AND PROVIDING FOR AN EFFECTIVE DATE
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WHEREAS, it is deemed necessary and advisable that the Notice of Intention to Issue Certificates
of Obligation be given as hereinafter provided; NOW, THEREFORE,
THE couNcn OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. That attached hereto is a form of "NOTICE OF INTENTION TO ISSUE
CERTIFICATES OF OBLIGATION OF THE CITY OF DENTON", the form and substance of which are
hereby adopted and approved, and made a part of this Ordinance for all purposes.
SECTION 2. That the City Secretary shall cause said NOTICE, in substantially the form attached
hereto, to be published once a week for two consecutive weeks in a newspaper of general circulation in the
City, with the date of the first publication to be at least forty-six (46) days before the date tentatively set for
the passage of the Ordinance authorizing the issuance of such Certificates of Obligation. And further that
the City Secretary shall cause said NOTICE, in substantially the form attached hereto, to be posted
continuously on the City’s Internet website for at least 45 days before the date tentatively set for the passage
of the Ordinance authorizing the issuance of the Certificates of Obligation.
SECTION 3. That this Ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this ordinance was made
The ordinance was passed and approved by the following wI' tIt '"d “''"d'd by?Ad %/
Mayor Chris Watts:
Gerard Hudspeth, District 1 :
Keely G. Briggs, District 2:
Jesse L. Davis, District 3 :
John Ryan, District 4:
Deb Armintor, At Large Place 5 :
Paul Meltzer, At Large Place 6:
Aye
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Nay Abstain Absent
PASSED AND APPROVED this the 16th day of June, 2020.
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ATTEST:
ROSA RIOS, CITY SECRETARY
af-IP:aRea
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
4arG;„„IBY:
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
NOTICE OF INTENTION
TO ISSUE CERTIFICATES OF OBLIGATION
OF THE CITY OF DENTON
(WASTEWATER SYSTEM AND ELECTRIC SYSTEM PROJECTS)
THE CITY OF DENTON, in Denton County, Texas, hereby gives notice of its intention to issue
CITY OF DENTON CERTIFICATES OF OBLIGATION, in accordance with the Certificate of Obligation
Act of 1971, as amended and codified, and other applicable laws, in the maximum principal amount of
$37, 120,000 for the purpose of paying all or a portion of the City’s contractual obligations incurred pursuant
to contracts for the purchase, construction and acquisition of certain real and personal property, to wit:
(a) acquisition of equipment for, and acquiring, constructing, installing and equipping additions,
extensions, renovations and improvements to, the City's wastewater system; and (b) acquisition of
equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and
improvements to, the City's electric light and power system; and also for the purpose of paying all or a
portion of the City’s contractual obligations for professional services, including engineers, architects,
attorneys, map makers, auditors, and financial advisors, in connection with said projects and said
Certificates of Obligation. The City proposes to provide for the payment of such Certificates of Obligation
from the levy and collection of ad valorem taxes in the City as provided by law, and from certain surplus
revenues (not to exceed $1,000 in aggregate amount) derived by the City from the ownership and operation
of the City’s Utility System (consisting of the City’s combined waterworks system, wastewater system and
electric light and power system). The City Council of the City tentatively proposes to authorize the issuance
of such Certificates of Obligation, in one or more series, at a meeting commencing at 6:30 p.m. on August 4,
2020, in the City Council room at the Municipal Building (City Hal1), 215 E. McKinney, Denton, Texas.
In the event that the City Council will be unable to meet at the Municipal Building (City Hall) on August 4,
2020, the City will post on its website, www.cityofdenton.com, information for persons to attend the
meeting by telephone, teleconference or other electronic means.
The maximum interest rate for such Certificates of Obligation will not exceed the maximum legal
interest rate, the maximum maturity date for such Certificates of Obligation is February 15, 2050, and the
estimated combined principal and interest required to pay such Certificates of Obligation to be authorized
on time and in full is $55,058,845.
The City has separately provided notice of its intention to also issue additional Certificates of
Obligation in the maximum principal amount of $27,250,000 for general government projects (the “General
Government Certificates of Obligation”). The maximum interest rate for the General Government
Certificates of Obligation will not exceed the maximum legal interest rate, the maximum maturity date for
the General Government Certificates of Obligation is February 15, 2050, and the estimated combined
principal and interest required to pay the General Government Certificates of Obligation to be authorized
on time and in full is $34,529,635.
The City currently has outstanding debt obligations secured by and payable from ad valorem taxes
(not including $490,012,468 principal amount of outstanding debt obligations the City has designated as
self-supporting debt) equal to $200,752,532 in principal amount and $261,398,297 in combined principal
and interest required to pay such outstanding debt obligations on time and in full. The City reasonably
expects to pay self-supporting debt obligations from revenue sources other than ad valorem taxes, provided,
however, that in the event such self-supporting revenue sources are insufficient to pay debt service, the City
is obligated to levy ad valorem taxes to pay such debt obligations. Additional information regarding self-
supporting debt obligations is available upon request to the City at the address noted above.
CITY OF DENTON, TEXAS
By: Rosa Rios, City Secretary