24-569ORDINANCE NO. 24-569
AN ORDINANCE DIRECTING THE PUBLICATION OF NOTICE OF INTENTION TO ISSUE
$177,560,000 1N PRI-NCIPAL AMOUNT OF CERTIFICATES OF OBLIGATION OF THE CITY OF
DENTON FOR WATERWORKS AND WASTEWATER SYSTEM AND ELECTRIC SYSTEM
PROJECTS; AND PROVIDING AN EFFECTIVE DATE.
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 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 farther 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 is intended to satisfy the official intent requirements set forth in
section 1.150-2 of the rules and regulations of the United States Department of the Treasury.
SECTION 4. That this Ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this ordinance was made by ( UcU S and
Flea a- . The ordinance was passed and approved by the following vote a–u :II.
seconded by
Abstain Absent
Mayor Gerard Hudspeth:
Vicki Byrd, District 1 :
Brian Beck. District 2:
Paul Meltzer. District 3 :
Joe Holland, District 4:
Brandon Chase McGee, At Large Place 5 :
Chris Watts, At Large Place 6:
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Nay
PASSED AND APPROVED this the 2nd day of April, 2024.
GERARD HUDSPETH, MAYOR
ATTEST:
JESUS SALAZAR, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
MACK REINWAND. CITY ATTORNEY
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Susan Keller =3F=.IH::‘n v r mlal=SusanKelleredtpfdenton.cmIBY : Dar iona)2514+6H4ym'
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
NOTICE OF INTENTION
TO ISSUE CERTIFICATES OF OBLIGATION
OF THE CITY OF DENTON
(WATERWORKS AND 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 $177,560,000 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 waterworks and 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 June 4, 2024, in the City Council room at the Municipal Building (City Hal1), 215 E.
McKinney, Denton, Texas. In the event the City Council will be unable to meet at the Municipal Building
(City Hall) on June 4, 2024, 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, 2054, and the
estimated combined principal and interest required to pay such Certificates of Obligation to be authorized
on time and in full is $277,753,063.
The City has separately provided notice of its intention to also issue additional Certificates of
Obligation in the maximum principal amount of $84,770,000 for general government and solid waste
disposal system projects (the “General Government & Solid Waste Certificates of Obligation”). The
maximum interest rate for the General Government & Solid Waste Certificates of Obligation will not
exceed the maximum legal interest rate, the maximum maturity date for the General Government & Solid
Waste Certificates of Obligation is February 15, 2054, and the estimated combined principal and interest
required to pay the General Government & Solid Waste Certificates of Obligation to be authorized on time
and in full is $113,920,043.
The City currently has outstanding debt obligations secured by and payable from ad valorem taxes
(not including $663,075,000 principal amount of outstanding debt obligations the City has designated as
self-supporting debt) equal to $351,860,000 in principal amount and $464,843,469 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. Ordinance No. 24- designating
certain outstanding debt obligations of the City as self-supporting for purposes of Texas Local Government
Code, Subchapter C of Chapter 271 is available upon request to the City at the address noted above.
CITY OF DENTON, TEXAS
By: Jesus Salazar, City Secretary