20-916ORDINANCE NO. 20-20-916
AN ORDINANCE
DIRECTING THE PUBLICATION OF NOTICE OF INTENTION TO ISSUE
$27,250,000 1N PRINCIPAL AMOUNT OF CERTIFICATES OF OBLIGATION
OF THE CITY OF DENTON FOR GENERAL GOVERNMENT 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 COUNCIL OF THE CITY OF DENTON HEREBY ORDArNS:
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.
T h e o r d iII :: =1 : 1:11np:11 :fdP::ra :hI :oTedJ nbayn =e v;:ls; I::: : t e [ a = D : d seconded '' M-@' ’
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:
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Nay Abstain Absent
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PASSED AND APPROVED this the 16th day of June, 2020.
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ATTEST:
ROSA RIOS, CITY SECRETARY BIll
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APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
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THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
NOTICE OF INTENTION
TO ISSUE CERTIFICATES OF OBLIGATION
OF THE CITY OF DENTON
(GENERAL GOVERNMENT 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
$27,250,000 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 vehicles and equipment for the fire, police, building inspections, community improvement
services, animal services, streets and traffic control, facilities management, and parks and recreation
departments; (b) acquiring, constructing, installing and equipping additions, extensions, renovations and
improvements to existing fire stations; (c) acquiring, constructing, reconstructing, renovating, installing and
equipping a municipal government building for municipal development services and other municipal
administrative purposes, and the acquisition of land and interests in land and properties therefor;
(d) acquiring, constructing, reconstructing, renovating, installing and equipping municipal parks;
(e) acquiring land and building for facility for homeless and indigent shelter and services; 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 $34,529,635.
The City has separately provided notice of its intention to also issue additional Certificates of
Obligation in the maximum principal amount of $37, 120,000 for wastewater system and electric system
projects (the “Utility System Certificates of Obligation”). The maximum interest rate for the Utility System
Certificates of Obligation will not exceed the maximum legal interest rate, the maximum maturity date for
the Utility System Certificates of Obligation is February 15, 2050, and the estimated combined principal
and interest required to pay the Utility System Certificates of Obligation to be authorized on time and in
full is $55,058,845.
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