1960-028TH~ STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
On this the 12th day of July, 1960, the Cmty Councml
of the City of Denton, Texas, convened ~n Regular meeting, at the regula~
meetmng place, with the following members present, to-w~t
Frank R Barrow, M~yor,
Thomas E Noel,
George F Spuller,
Councilmen,
W F Brooks,
G. Emery Taylor,
W D Buttrmll, Cmty Secretary,
and wzth the followzng absent -~-~o~ ~, ~40£L--! CA) F~ ~oo1¢ ~ ,
const~tutzng a quorum, at which t~me the following proceedings were had
Councilman ~'-~o~-- mntroduced an ordinance
and made a motion that it be passed The motion wa~ seconded by Counczlman
~O~-~ ~ The motion carrying w~th it the passage of the ordinance
prevazled by the following vote
AYES Councilmen ~ Spuller, Brooks and Taylor and
Mayor Barrow
NOES None.
The ordinance as passed is as follows
ORD ANC NO
BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
PROVIDING FOR THE ISSUANCE OF CITY OF DER~ON, TEXAS~
WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1960,
IN THE AGGREGATE AMOUNT OF $1,700,000 00, BEARING
INTEREST AT THE RATES HEREINAFTER SET FORTH, TO SECURE
FUNDS F~ THE PURPOSE OF PAYING OFF AND RETIRING
~810,000 O0 OF THE CITY'S OUTSTANDING WATER AND SEWER
REVENUE BONDS AND $890,000 OO FOR THE PURPOSE OF IM-
PROVING, AND EXTENDING THE CITY'S WATERWOREB AND SEWER
SYSTEM, PRESCRIBING THE t'ORM OF BOND, PLEDGING THE
REVENUES OF THE CITY'S WATERWORKS AND SEWER SYSTEM TO
THE PAYI~NT OF THE PRINCIPAL OF AND INTEREST ON SAID
BONDS, PROVIDING FOR THE EXPENSE O~ OPERATING SAID
SYSTEM, MAKING CERTAIN COVENAlflB OF TEE CITY IN REFER-
ENCE TO THE BONDS AND THE BOND FUND FROM WHICH SAID
PRINCIPAL AND INTEREST ARE TO BE PAID, PROVIDING THAT
THE HOLDER OR HOLDERS OF SAID BONDS SHALL NEVER HAVE
THE RIGHT TO DEMAND PAYMFNT OF SAID OBLIGATIONS OUT
OF ANY FUNDS RAISED OR TO BE RAISED BY TAXATION, AND
REPEALING ALL ORDINANCES IN CONFLICT HERLWITH
WHEREA~, there are outstanding and unpaid certain bonds
of the City of Denton, Texas~ constmtuting legal~ outstanding snd unpaid
obligatmons of the City's Waterworks and Sewer System, more particularly
described as follows
City of Denton~ Texas, Water and Sewer Revenue
Bonds, Series 1946, dated November l~ 1946, ormginally
issued ~n the amount of $1,225,000 00~ bearing mnterest
at the rate of 2-3/4% per annum~ now outstanding mn the
amount of $812,000 00~ maturing serially throughout the
years 1960 to 1976, both ~nclusive .......... $812~000 00,
and
WHEREAS, said bonds were approved by the Attorney General
of the State of Texas~ were registered by the Comptroller of the State of
Texas and sold snd delivered in accordance wit~ law, and
WHEREAS~ it is considered to be to the best mnterest of
the Czty that $2,000.00 of said outstanding bonds be pamd in cash, and
WHEREAS, $810,000 O0 of the bonds hereinafter authorized
are issued for the purpose of providmng funds, which together wmth other
available funds, are sufficzent to pay and retire a lmke prmnc~pal amount of
the above described outstanding bonds in the manner authorized by Chapter 541,
Acts 1949, 51st Legislature of Texas~ as amended by Chapter 377~ Acts 1955,
54th Legislature, and
WHEREAS, as required by sa~d Acts the optional bonds of
the issue above described have been duly called for redemption in the manner
provided in the ordinance authorizing their issuance and as provided in each
of said bonds, and
WHEREAS, the City Council of the C~ty of Denton~ Texas~
has determined that it ~s to the best interest of the C~ty and of ~ts c~tmzens
that it issue revenue bonds of said City to mmprove and extend the City's
Waterworks and Sewer System, and
WHEREAS, pursuant to such determinatmon~ the City Council
of the City of Denton, Texas~ passed an ordinance on the 7th day of January,
1960, calling an election on several propositions, ~ncluding the followmng
PROPOSITION NO
"Shall the City Council of the City of Denton,
Texas, be authorized to issue the bonds of said City
the amouilt of $1,600,000 00, maturing serially in such
installments as may be fixed by the City Council, the
maximum maturity being not more than Forty (40) years
from their date, bearing interest at a rate not to exceed
5]~_-~ per annum, for the purpose of improving and extending
the City's Waterworks System, to be Issued in accordance
with and secured in the manner provided in Articles llll-
lll8, both inclusive, of the Revised Civil Statutes of
Texas, 1925, as amended, each bond to be conditioned that
the holder thereof shall never have the right to demand
payment of said obligations out of funds raised or to be
raised by taxation, secured by a pledge of the net revenues
from the operation of the City's Waterworks and £~ewer oystem
Thirty years ~s estimated as the probable per~od
of usefulness of such improvements
PROPOSITION NO 4
"Shall the City Council of the City of Denton,
Texas, be authorized to issue the bonds of sa~d City in
the amount of $2,600,000 00, maturing serially in such in-
stallments as may be fixed by the City Council, the maxi-
mum maturity being not more than Forty (40) years from
their date, bearing ~nterest at a rate not to exceed 5~
per annum, for the purpose of improving and extending the
City's Sewer System, to be issued in accordance with and
secured in the manner provided in Articles llll-llla, both
inclusive, of the Revised C~vll Statutes of Texas, 1925,
as amended, each bond to be conditioned that the holder
thereof shall never have the right to demand payment of
said obligations out of funds raised or to be raised by
taxation, secured by a pledge of then et revenues from the
operation of the City's Waterworks and ~ewer System
Thirty years ~s estimated as the probable period
of useiulness of such improvements"
~ and
WHEREAS, at the election held in said City on the 30th
day of January, 1960, a majority of the resident, qualified electors owning
taxable property in said City, and who had duly rendered the same for tax-
atlon, voting at said election, sustained the propositions to issue said
bonds hereinafter described by the following
PROPOS ITION NO
"FOR THE ISSUANCF OF WATEgWOEK~ IMPROVEMENT
AND EXTER~ION REVENUE BONDS" 1152 Votas
"AGAINST THE ISSUANCE OF WATERWORKS IMPROVE-
MENT AND EXTENSION RF~NU~ BONDS" 431 Votas
PROPOS ITION NO 4
"FOR THE ISSUANCE OF SE~ER IMPROVEME~2 AND
EXTENSION REVENUE BONDS" 1175 Votes,
"AGAINST THE ISSUANCE OF SEWF2~ IMPROVEMENT
AND EXTENSION REVENUE BONDS" 420 Votes,
as is reflected in the elect~on returns heretofore fmled w~th the C~ty
Secretary, and
WHEREAS~ at thins t~-me mt ~s considered proper to sell
One M~ll~on Seven Hundred Thousand ($1,700,000 00) Dollars of bonds, to-wit
$810,000.00 for the purpose of ret~ring a like amount of outstanding Water-
works and Sewer Revenue Bonds, $155,000 O0 for the purpose of improving and
extending the City's Waterworks System and $735,000 O0 for the purpose of
improving and extending the C~ty's Sewer System, reserving the right to the
City to sell all or any part of the remaining authorized $1,445,000 O0 of
bonds for improving and extending the waterworks system and $1,865,000 00
of bonds for improving and extending the sewer system~ ell to be considered
when ~ssued as a part of the same series of mndebtedness ~nsofar as llens
and r~ghts are considered, and
WHEREAS~ it ~s considered to be to the best interest of
the C~ty that sa~d bonds be authorized ~n one issue secured by a f~rst l~en
on and pledge of the net revenues from the operatmon of the City's Waterworks
and Sewer System, and
WHEREAS, it is now necessary and proper that the Cmty
Ceuncll proceed w~th the issuance of such revenue bonds,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
i That to provide f~nds for the purpose of retzrmng
$810, O00 O0 of outstanding Waterworks and Sewer Revenue Bonds, and mmprov~ng
a~d extending the C~ty's Waterworks and Sewar System, pursuant to the Con-
stitut~on and Statutes of ~he State of Texas~ znclud~ng particularly Articles
llll to lllS, both inclusive, 1925 Rewsed C~vml .~ tatutes of Texas, as amended
Chapter 163, Acts of the Regular Session of the ~orty Second Legzslature,
as amended~ and Chapter 541~ Acts 1949, 51st Legislature of Texas, as amended
by Chapter 377, Acts 1955~ 54th Legislature of Texas, there shall be issued
"Clty of Denton, Texas, Water and Sewer System Revenue Bonds, Ser~es 1960",
aggregating One Mill~on Seven Hundred Thousand ($1,?00,000 00) Dollars,
numbered One (1) to One Thousand Seven Hundred (1,700), bath inclusive, of
the denomination of One Thousand (~l, O00 00) Dollars each
2 That sa~d bonds shall be dated July 15, 1960, and
shall bear interest at the rates as follows
~ ~ p~r annuill,
Bonds Nos i to~Q~--, both zncl , ~ per annum,
Bonds Nos
Bonds Nos ~ to~__, " " ~ .~ per annum,
Bonds Nos to , " " per annum,
Bonds Nos. ~ to ~., $ per annum,
p~yable J~nuary 15, 1961, and semi-annually thereafter on July 15th and
January 15th of each year, princzpal of and interest on sazd bonds shall be
payable in lawful money of the Unzted States upon presentatzon and surrender
of bond or proper coupon at The First National City Bank of New York, New York
New York, or, at the optzon of the holder, st the First National Benk zn
Dallas, Dallas, Texas, without exchange or collectzon charges to the owner
or holder thereof, and they shall mature as follows
BONDS NUNBERS NATURITY DATES A~OUR~
i to 10, both lncl , July 15, 1962, $ lO,000 00
ll to 20, " " July 15, 196~, lO, O00 O0
21 to ~0, " " July 15, 1964, lO, O00 O0
~l to 40, " " July 15, 1965, lO, O00 O0
41 to 80, " " July 15, 1966, 40,000 O0
81 to 120, " " July 15, 1967, 40,000 O0
121 to 160, " " July 15, 1968, hO,000 O0
161 to 205, " " July 15, 1969, 45.000 O0
206 to 250, " " July 15, 1970, 45.000 O0
251 to 295, " " July 15, 1971, 45~000 O0
296 to ~5, " " July 15, 1972, 50.000 O0
~6 to ~95, " " July 15, 197~, 50.000 O0
~96 to 450, " " July 15, 1974, 55.000 O0
451 to 505, " " July 15, 1975, 55.000 O0
506 to 565, " " July 15, 1976, 60,000 O0
566 to 625, " " July 15, 1977, 60,000 O0
626 to 6~0, " " July 15, 1978, 65,000 O0
691 to 755, " " July 15, 1979, 65,000 O0
756 to 825, " " July 15, 1980, 70,000 OO
826 to 895, .... July 15, 1981, ?0,000 OO
896 to 970, " " July 15, 1982, 75,000 O0
971 to 1045, " " July 15, 198B, 75,000 O0
1046 to 1125, " " July 15, 1984, 80,000 O0
1126 to 1210, " " July l~, 1985, 85,000 00
1211 to l~O0~ " " July 15, 1986, 90,000 O0
l~O1 to 1~95, " " July 15, 1987, 95,000 O0
1~96 to 1495~ " " July 15, 1988, lO0, O00 O0
1496 to 1595~ " " July 15, 1989, 100,000 O0
1596 to 1700, " " July 15, 1990, 105,000 O0
3 In Bonds Numbers Five Hundred Six (506) to One
Thousand Seven Hundred (1~700), both ~ncluslve, the C~ty reserves the option
of calling each such bond for redemption prior to maturity on any ~nterest
payment date on and after July 15, 1975, at par and accrued interest to date
so f~xed for redemption~ plus ~ premium of 2~!~, such premium to be reduced
on July 15~ 1976 to 2~ with a further reduction of 1/2 of l~ on July 15th
of each year through July 15~ 1979 There shall be no premium on such bonds
which may be redeemed July 15, 1980~ or on any interest payment date there-
after Thirty days' notice of such call shall be g~ven in writing to the
places of payment and notice shall be published in the C~ty of New York~
New York Said not,ce shall appear in sa~d publication ~n at least one
~ssue~ the date of said issue being not less than thirty days prior to the
date so fixed for redemption If any such bond is called for redemption ~n
sa~d manner and if funds sufficient to pay the redemption price shall have
been duly placed in the banks of payment by the date fixed for redemption, it
shall not thereafter bear ~nterest If fewer than all of the optional bonds
are called for redemption~ they shall be called by lot
4 That each of said bonds and interest coupons shall
be executed by the imprinted facsimile s~gnature of the Mayor and counterszgn.
ed by the ~mpr~nted facsimile signature of the C~ty Secretary and the cor-
porate seal of the C~ty of Denton~ Texas~ shall be ~mpressed upon each of
sald bonds Such facszmile signatures shall have the same effect as manual
signatures
5 That sa~d bonds shall constitute special oblzgat~ons
of said City of Denton and each of sa~d bonds shall contain the provision
that the holder thereof shall never have the r~ght to demand payment of sa~d
obligation out of funds raised or to be r~ised by taxation
6 The form of said bonds shall be substsnt~llyao
follows
NO $1,000 00
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WATER AND SEWER SYSTEM REVENUE BOND
SERIES 1960
The City of Denton~ in the County of Denton, State of
Texas~ a municipal corporation duly ~ncorporated under the laws of the State
of Texas~ for value rece~ved~ hereby acknowledges ~tself mndebted to and
promises to pay to the bearer hereof on the 15th day of July, 19 .... , the
sum of
ONE THOUSAND DOLLARS
in lawful money of the United States of America~ w~th ~nterest thereon from
date hereof at the rate of ( %) per cent per
annum~ evidenced by coupons payable January 15, 1961~ and semi-annually there-
after on July 15th and January 15th of each year, untml the prmncmpal sum
sDall be paid~ which interest is payable in lawful money of the Un~ted States
of Amermca~ upon presentation and surrender of proper coupons as they severally
become due, both principal and mnte~est bemng payable at The Fmrst N~tmona]
C~ty Bank of New York, New York, New York, or, at the option of the holder, at
the First Natmonal Bank in Dallas, Dallas, Texas, wmthout exchange or collect~o
charges to the owner or holder hereol
Thms bond ms one of ~ sar~es of bond~ o~ lmke tenor and
effect, except as to number, interest rate, maturmty and r~ght of przor
dempt~on~ numbered One (1) to One Thousand Seven Hundred (1,700)~ both ~n-
cluslve~ of the denomination of One Thousand ($1,000 00) Dollars esch~ aggre-
gating One Mmllmon Seven Hundred Thousand ($1~700,000 00) Dollars,mssued by the
Cmty of Denton~ Texas, for the purpose of ret~rmng '~810~O00 O0 of outstanding
~aterworks and Sewer Revenue Bonds~ and ~mproving and extending the Cmty'o
Waterworks and Sewer System~ mn accordance wmth the Constmtutmon and laws of
the State of Texas and the Charter of ~amd C~ty, and pursuant to an ordmnanca
passed by the C~ty Councml of the Cmty o~ Denton, Texas, duly recorded mn tha
mznutes of samd City Council
The date of this bond in confo~mmty wmth the ordmnance
above mentmoned io July 15~ 1960
*(Bonds numbered Fmve Hundred (506) to One Thousand Seven
~undred (1~700)~ both inclusive, of the issue of which th~ ms one, may be re-
deemed prmor to maturmty at the option of the C~ty on the 15th day of July~
or on any interest payment date thereafter, at a pr!ce of par and accrued
~nterest to date so fixed for redempt~on~ plus a premium of 2~ such premium
to be reduced on July 15, 1976, to 2~ with a iurther reduction of 1/2 el 1%
on July 15th of each year through July 15, 1979 There shall be no premium
on such bonds which may be redeemed July 13~ 1980, or on any interest payment
date thereafter Thirty days notice of such call is to be given ~n writing to
the places of payment and said not~ce ~s to be published ~n a linancial publ~-
cation published ~n the C~ty of New York, New York Sa~d notice shall appear
zn said publication ~n at least one ~ssue, the date of sazd issue being not
less than thirty days pr~or to the date so f~xed for redemption If such
bond is called for redemptzon in sa~d manner and ~f funds suif~czent to pay
the redemption price shall have been duly placed in the banks of payment by
the date f~xed for redemptzon, zt shall not thereafter bear interest If
fewer than all of the optional bonds are called ior redempt~on~ they shall
be called by lot )
The City reserves the rzght to zssue addit~onal parity
revenue bonds (including the $1~45,000 O0 Waterworks Improvement and Ex-
tension Revenue Bonds and the $1~865,000 O0 Sewer Improvement and Extension
Revenue Bonds authorized at the elect~on held on January 30, 1960~ not being
~ssued at this time) for waterworks and sewer ~mprovements and extensions,
under the conditions stated in the ordinance authorizing this issue of bonds,
paysble from the same source as are the Bonds of th~s issue
This bond and the ser~es of which ~t zs a part, con-
stitute specmal obligations of the C~ty of Denton, Texas, payable both as
to principal and interest from and secured by a first l~en on and pledge of
the net revenues of the City's Waterworks and Sewer System, and the holder
hereof shall never have the r~ght to demand payment of th~s obligation out
of any funds raised or to be razsed by taxation
Each successive holder of this bond and each successive
holder of each of the coupons hereto attached, is concluszvely presumed to
forego and renounce h~s equities in favor of subsequent holders for value
w~thout not~ce, and to agree that this bond and each of the coupons hereto
attached, may be negotiated by delivery by any person hav~ng possession
hereof, howsoever such possession may have been acquired, and that any holder
who shall have taken this bond or any of the coupons from any person for
value and without notic% thereby has acquired absolute title thereto, free
from any defenses enforceable against any prior holder and free from all
equities and claims of ownership of any such prior holder The C~ty of
Denton and its officials and the paying agent here~nabove named shall not
be affected by any notice to the contrary
AND IT IS HEREBY CERTIFIED AND RECITED that the iszuance
of this bond and the series of which it ~s a part, ~s duly authorized by law
and by a majority of the resident, qualified electors owning taxable property
· n said Czty~ and who have duly rendered the same for taxation, voting at
an election held for that purpose within s~d C~ty, that all acts, conditions
and things required to exist precedent to and in the issuance of th~$ bond
to render the same lawful and valid have been properly done, have happened
and been performed ~n regular and due t~me, form and manner as required by
the Constitution and laws of the State of Texas, and the ordinance herein-
above mentioned,that this ser~es of revenue bonds does not exceed any con-
st~tutlonal, statutory or charter l~mitations, and that provision has been
made for the payment of the principal of and interest on th~s bond and the
series of which it ~s a part by irrevocably pledging to the payment thereof
net revenues of the Waterworks and Sewer System of the C~ty of Denton
IN TESTIMONY WHEREOF, the City Council of the City of
Denton~ Texas~ has caused the seal of said City to be ~mpressed hereon and
this bond and the annexed coupons to be executed by the facsimile signature
of the Mayor of said C~ty and countersigned by the facsimile s~gnature of the
Czty Secretary
Mayor, C~ty of Denton, Texas
COUNTERSIGNED
C~tySecretary, City of Denton, Texas
· (Th~s paragraph should be ommtted from Bonds Nos I to 505, both incl )
7 The form of said coupon shall be substantmally as
follows
ON THE 15TH DAY OF
The City of Denton, Texas, out of revenues specified in
the bond to which this coupon ~s attached, w~ll pay to besrer *(unless the
bond to which this coupon is attached shall have been called for previous
redemption as therein provided and prov~s~on for the redemption thereof made),
at The F~rst National City Bank of New York, New York, New York, or, at the
option of the holder~ at the First National Bank in Dallas, Dallas, Texas,
without exchange or collection charges to the owner or holder hereof, the
sum of ($ .) Dollars in lawful
money of the United States of Amermca, samd sum being months' ~ntere~t
due that day on "City of Denton, Texas, Water and Sewer System Revenue Bond,
Series 1960"~ bearing the number hereinafter specified, dated July 15~ 1960
The holder hereof shall never have the rmght to demand payment of this oblm-
gation out of funds ramsed or to be raised by taxation Bond No
City Secretary Mayor
*(Thms parenthetical expression should be prmnted only ~n coupons maturing
January 15, 1976, and subsequent)
8 The form of Comptroller's cert~I~cate~ whmch shall
be printed on the back of each bond shall be substantmally as follows
OFFICE OF COMPTROLLER
STATE OF TEXAS
I HEREBY CERTIFY that there is on f~le and of record in
my office a certificate of the Attorney General of the State of Texas to the
effect that this bond has been examined by him as requmred by law, and that
he fznds that it has been issued ~n conformmty wmth the Constmtutmon and l~w~
of the State of Texas and the Charter of samd Cmty, and that it ~s a valid
and binding special obligation of the Czty of Denton, Texas, payable from the
revenues pledged to ~ts payment by and in the ordmnsnce authorizing same, and
said bond has this day been registered by me
WITNESS MY HAND and seal of ofimce at Aust~n~ Texas~
Comptroller of Publmc Accounts of the
StaTe of Texas
(SEAL)
9 DEFINITIONS (a) The term "SYSTEM", as used in this
Ordinance shall mean the City's complete Water and Sewer ~ystem, ~ncludmng
all present and future extensions, enlargements, 8dditmons, replacements and
mmprovements thereto
(b) The term "NET REVENUE~", as used in this Ordinance
~hall mean the gross revenues of the Syotem, less the expense of oDeration
and maintenance, includlng all salaries, labor, materials, repairs and ex-
tensions necessary to render effmcient servmce, provided, however, that only
such repairs and extenslons~ as in the judgment of the City Council, reason-
ably and famrly exercised, as are necessary to keep the System mn operatmon
and render adequate servmce to the City and the inhabitants thereof, or such
as might be necessary to meet some physmcal accident or condmtzon which
would otherwise impamr the Bonds authorized by this 0rdmnance and the Addi-
tional Bonds permitted to be ~ssued under Section 19 hereof, shall be deducted
mn determining "Net Revenues"
(c) The term "BONDS" shall mean the $1,700,000 OO oi
Bonds authorized by th~s Ordinance
(d) The term "ADDITIONAL BONDS" means the addmtmonal
bonds which the Cmty reserves the rmght to mssue under Section 19 hereof
l0 PLEDGE The Net Revenues of the ~ystem in the amount
required to establish and maintain the funds as hereinafter provided are
hereby mrrevocably pledged for the payment of the Bonds, and of the Additional
Bonds, mf issued under the conditions and ~n the manner specifmed mn this
Ordinance, and the interest thereon, and mt is hereby ordained that the Bonds,
and the Additional Bonds, if so issued, and the ~nterest thereon shall con-
statute a f~rst and prmor l~en upon samd Net Revenues~ subject only to the
payment of the $810,000 O0 City of Denton W~terworks and Sewer System Revenue
Bonds, dated November l, 1946~ and interest thereon, money for which has been
deposited with the Treasurer of the State of Texas mn an amount sufficient
to pay said bonds and the interest to accrue thereon to maturity, or the date
fixed for prmor redemption, whichever is the earlier, and suffmcment to pay
any and all premiums due thereon
ll RATES The City covenants and agrees with the
holders of the Bonds and the Additional Bonds ~f and when zssued
(a) That it w~ll at all t~mes charge and collect for
services rendered by the System rates suffmcient to pay all operating and
maintenance expense, and other costs deductible in determmnmng "N~t Revenues"
ss heremn defmned and to produce each fiscal year net revenues in an amount
not less than one and thirty-hundredths (1 30) t~mes the amounts required to
pay the prmncipal of and mnterest on the Bonds, and the Reserve ~und payments,
az they become due,
(b) If Additional Bonds are ~ssued, the City shall to the
extent required f~x and maintain additmonal rates and collect charges for the
services of the System which wmll produce each f~scal year "Net Revenues" in
an amount not less than one and thirty-hundredths (1 30) tmmes the amounts re-
quired to pay the principal of and interest on the Bonds and the Addmtlonal
Bonds, and the Reserve Fund payments, as they become due,
(c) If the System should become legally l~able for any
other mndebtedness, the Cmty shall fmx and ma~ntamn additional rates and
collect charges for the services of the System sufficient to provide for the
payment thereof
12 I~JNDS All revenues dermved from the operatmon of the
System shall be kept separate from other lunds of the C~ty/ To that end, the
followmng special funds are hereby created
(a) City of Denton Water and Sewer System Revenue Fund,
heremnafter called "Revenue Fund", which shall be kept mn the City's deposztory
b~nk,
(b) Cmty of Denton ~ter and Sewer System Revenue Bond
Interest and Sinkmng ~und, heremnafter called "Interest and Smnkmng Fund",
which shall be kept mn the Cmty's deposmtory bank,
(c) City of Denton Wster and Sewer %ystem Revenue Bond
~eserve Fund, hereinafter calle~ '~eserve Fund", which shall be kept mn the
Cmty's depository bank
13 REVENUE FUND All revenue~ of every nature received
from the sale of water or through the operation of the ~ystem shall be deposit.
ed from day to day as collected into the Revenue Fund, and tl~ reasonable and
proper expense~ of operating and malntsmn~ng the System, including salarla~,
labor and materials shall be paid thereir~m upon approval el fha C~ty Council
~evenues of the System not actually required to pay expenses and costs
curred as permitted by this Section shall be deposited in the other Funds
created by this Ordinance, each of which shall hava pr±ormty ~hereto mn t~e
order in which they are treated in the following sections
14 INTEREST AND 5INKING FUND On July il, 1960, and
on the last day of each month thereafter, the Cmty shall depos it into thc
Interest and Sinkmng Fund an amount of money not lass than one-sixth (1/6th)
of the next maturing interest, and on July ~1, 1961, and on the last day of
each month thereafter, the City shall deposmt into the Interest and Slnkmng
Fund an amount of money not less than one-twelfth (1/12th) of the next matur-
ing principal The amount received from the purchaser~ of the bonds as in-
terest accrued thereon to the date of delivery shall be placed in the Interest
and Sinking Fund, whmch shall reduce by such amount tha sums which would other.
wise be required to be placed into the Interest and Sinking Fund from the
revenues oi the ~ystem The Interest and 'mnk~ng Fund shall be used to pay
the principal of and interest on the Bonds and any Additmonal Bonds, when
issued
15 RESERVE FUND On or before July 31, 1960, and on or
before the last day of each month thereafter, the]e shall be deposited mn the
Reserve Fund the amount of $1,8j5 O0 untml the amount of cash and Investment~
mn samd Fund is $110, O10 O0 Whenever sa~d Reserve Fund ms reduced below
that amount, payments mnto the Fund shall be resumed and continued untml suc~
time as the Fund has been restored to the sum of $]10,010 O0 The Reserve
Fund shall be used to pay principal of or mnterest on the Bonds and Additmonal
Bonds, when issued, falling due at any t~me when there is not suffmclent ~)ney
available in the Interest and Slnkmng Fund ior such purpose Monies mn the
Reserve Fund may, upon order of the Cmty Council, be ~nYested in direct obli-
gations of, or oblmgations the prlncmpal of and mnterest on which are
unconditmonally guaranteed by, the Unmted States Government, and to the
extent permmtted by law~ Federal Intermedmate Credmt Banks, Federal Land
Banks~ Federal Natmonal Mortgage Asso~latmon~ Federal Home Loan Banks or
Banks for Cooperatives~ which shall mature, or whmch shall be subsect to re-
demption by the holder thereof at the optmon of such holder, not later than
ten years after the dates of investment To the extent that the Reserve Fund
ms so invested~ the Czty shall, when necessary~ l~qumdate on the open market a
suffmcment amount of samd oblmgatmons in order to meet any requmrements upon
the Reserve Fund an the event and to the extent t[~at there are not suffmcment
unmnvested monmes on hand mn the Reserve Fund ior such purpose In computmng
the assets in the Reserve Fund, the mnvestments theremn shall be valued every
six months at cost, current market value~ or at the applicable redemptmon
price, whichever ms lower Any oblmgatmons mn whmch money ms so ~nvested
shall be kept in escrow in the bank mn whmch the Reserve Fund i~ kept, and
shall be promptly sold and the proceeds of sale applmed to the maSmng of pay-
ments required to be made from the Reserve Fund~ whenever such payments are
necessary to be made under this Section The deposits mnto this Fund shall be
subordinate to those required to be made mnto the Interest and Sinkmng Fund
Whenever Additional ~nds are mssued~ the aggregate amount to be accumulated
and maintained mn the Reserve Fund shall be mncreased to an amount whmch wzll
be not less than the average annual requmrement for the payment of prmncmpal
and interest on all bonds to be outstandmng after the mssuance of samd Addi-
tional Bonds Such increased amount shall be accumulated by equal monthly
deposmts in not to exceed f~ve years and one month after the date of the
Additmonal Bonds
16 DEFICIENCIES IN FUNDS If mn any month the Cmty shall
fa~l to pay into the Interest and S~nking Fund and the Reserve Fund the full
amounts above stlpulated~ amounts equmvalent to such defmc~encmes shall bc set
apart and pamd into sa~d Funds from the first avamlable and unallocated revenue~
of the following month or months~ and such payments shall be ~n additmon ta~ the
amounts here~nabove provided to be otherwise pamd mnto ~azd Funds during such
month or months To the extent necessary, the Cmty shall increase the rates
and charges for services of the System to make up such deficiency
17 EXCESS REVENUES Any revenues in excess of those
required to establish and maintain the Funds as above required may be used
for the redemption of Bonds or Addztzonal Bonds, the purchase of Bonds or
Addztional Bonds at not exceeding the market value thereof, or ior any other
purpose now or hereafter permitted by law
18 SECURITY FOR FUNDS All funds created by thzs
Ordinance shall be secured in the manner and to the fullest extent permitted
by law for the securzty of public funds,and such funds shall be used only for
the purposes permitted in thzs Ordinance
19 ADDITIONAL BONDS (a) The City reserves the r!ght
to issue additional bonds payable from revenues of the System As above pro-
vided~ the $1,700,000 O0 of Bonds dzrected by thzs Ordinance to be zssued shal
be called "Bonds", and the additzonal bonds shall be called "Addztzonal Bonds"
The Addzt~onal Bonds~ when zssued~ shall be secured by and payable from a
first lien on and pledge of the Net Revenues of the System~ in the same manner
and to the same extent as are the Bonds authorized by thzs Ordinance~ and the
Bonds and the Additional Bonds shall in all respects be of equal d~gn~ty
The Additzonal Bonds may be zssued zn one or more ~nstallments The prov~szon
of thzs Ordinance relating to Additional Bonds pertain only to Add~tzonal
Bonds permztted by this Section 19~ and do not relate to ounior lzen bonds
(b) It ~s provided, however, that none o~ the Additional
Bonds shall be ~ssued unless
(1) The Interest and Slnkmng Fund and the Reserve Fund
each contains the amount of money then required to be on deposmt there~n,
(2) The Net Earnings for any consecutmve twelve months
out of the fmfteen months next precedmng~ or Ior the fzscal year next preced-
mng~ the date of the Additional Bonds, were equal to at least one and thmrty-
hundredths (1 30) times the combined pr~ncmpal and mnterest requzrements, and
Reserve requmrements mf any~ of all bonds to be outstandmng after the mss~anct
of the Additional Bonds~ for the year when such requirements are the greates%
as such Net Earnings are shown by a report oi a certmfmed publmc accountant
The term "Net Earnings", as used here~n, shall mean the gross revenues aiter
deducting disbursements for operation and maintenance, but not deductmng ex-
penditures which, under standard accounting practice, ~hould be charged to
capital expenditures,
(3) The Addltmonal Bonds are made to mature July 15 of
each of the years in which they are scheduled to mature,
(4) The C~ty i~ not in default ~n any of the covenants
contained in this Ordinance
20 MAINTENANCE AND OPERATION INSURANCE The C~ty
shall maintain the System mn good condltmon and operate the same in an effm-
cient manner and at a reasonable cost So long as any of the Bonds or Addm-
tlonat Bonds are outstanding, the City agrees to mazntamn znsurance for the
benefit of the holder or holders of the bonds, on the System of a kmnd and ~n
an amount which usually would be carried by private companies engaged ~n a
s~m~lar type of bus~ness Nothing mn this Ordinance shall be construed as
requiring the C~ty to expend any fund~ which are derived from sources other
than the operation of the System, but nothing herein shall be construed as
preventing the City from doing so
21 ACCOUNTS The City shall keep proper books of racord
and accounts (separate from all other records and accounts of the C~ty) in
whmch complete and correct entries shall be made of all transactzons relatxng
to the System, and shall have saxd books audited once each fmscal year by an
~ndependent certified public accountant The fmscal year for the System shall
coincide wlth the fiscal year fmxed by the Cmty Charter
22 ACCOUNTING REPORTS W~thln nmnety days after the
close of each f~scal year hereaiter, the City wmll furnish to Fmrst Southwest
Company, Dallas, Texas, and to ,
(wmthout cost) a signed or certified copy of a report by an mndcpendent car-
tifzed public accountant covering tl~ next preceding fmscal year showing the
following mnformat~on
(a) Income and ~xpense ~tatement,
(b) Balance Sheet a~ of the end of the f~scal year,
(c) Accountant's comment regarding the manner in which
the Czty has complied wzth the requirements of this Ordznance and hzs
recommendations, zf any, for any changes o7 zmprovements in the operation
of the System,
(d) Llst oi insurance policies ~n force at the end of
the year, showing, as to each policy, tho rzsk covered, the name of the
insurer, and the expzration date,
(e) The number of propertle~ connected with the water
and sewer system and the total zncome from each sa~d system for the year,
(f) The number of unmetered customers of the water system
at the end of the year,
(g) The approximate number of gallons of water flowzng
into the water system of the City and the number oi gallons sold during the
year
23 SPECIAL COVENANTS The Czty lurther covenants so
follows
(a) That it has lawful power to pledge the revenues
supportzng this zssue of bonds and has lawfully exercised said power under
the Constitutzon and laws of the State of Texas, includzng said power exist~
lng under Articles llll-lll8, both incluszve, Revised Czvzl Statutes of the
State of Texas, wzth amendments thereto, that the Bonds zssued hereunder~ and
the Addztional Bonds when zssued, shall be ratably secured by said pledge of
income, in such manner that one bond shall have no preference over any other
bond,
(b) The City covenants and represents that other than for
the payment of the bonds herein authorzzed the rents, revenues and zncome of
the System have not zn any manner been pledged to the payment of any debt or
obligation of the City or of the System,
(c) That so long as any of said bonds remain outstanding,
the City will not sell or encumber the System or any substantial part thereof~i
and that, with the exception of the Additzonal Bonds expressly permitted by
tHzs Ordznance to be issued, zt wzll not encumber the revenues thereof unles~
such encumbrance zs made junior and subordinate to all of the proviszons of
th~s Ordinance,
(d) That no free servmce of the System shall be allowed
and should the Czty or any of its agencies or mnstrumentalatzes make use of
the services and facalities of the System payment of the reasonable value
thereof shall be made by the C~ty out of funds from sources other than the
revenues and income of the System,
(e) To the extent that mt legally may, the Cmty further
covenants and agrees that, so long as any of the Bonds or Additional Bonds
or any anterest thereon are outstanding, no franchise shall be granted for
the anstallatlon or operation of any competang water system or sewer system,
that the Caty wmll prohmbit the operation of any such ~ystem other than those
owned by the City, and the operation of any such system by any one other than
this City as hereby prohibited
24 IEBPECTION Any holder or holders of Bonds or
Additional Bonds have the right at all reasonable tames to anspect the System
and all records, accounts and data of the Czty relatmng thereto
25 REMEDIES In addltmon to all the raghts and remedmes
provided by law, the City further covenants and agrees that an the event of
default in the payment of principal or anterest on any of the bonds when due,
or at falls to make the payments as required to be made znto the Funds created
by this Ordinance, or defaults mn the observance or performance of any othe~
of the covenants, conditions, or oblmgatmons set forth mn thms Ordinance, the
holder or holders of any of the bonds shall be entitled to a writ of mandamus
or other appropriate order issued by a court of proper Ourasdactmon compellang
and requarlng the Cmty and the officials thereof to observe and perform any
covenant, obligation or condltmon prescrzbed in this Ordanance No delay or
omlssmon to exercm~e any right or power accrumng upon any default shall impa~
any such right or power or shall be construed to be a waaver of any such
fault or acquaescense theremn~ and every such right and power may be exerczsed
from t~me to time and as often as may be deemed expedment The specific
remedmes herein provaded shall be cumulatmve of all otnar exastmng remedaes
and the specafmcations of such remedmes shall not be deemed to be cxcluszva
26 BONDS ARE SPECIAL OBLIGATIONS The Bonds are spec~a!
obligations of the C~ty, payable from the pledged revenues and the holder
thereof shall never have the right to demand payment thereof out of funds
raised or to be raised by taxation
27 APPROVAL BY ATT(~N]JY GENERAL Tb~s ~ssue of bonds
and the record relatzng thereto shall be submitted to the Attorney General of
Texas, for h~s approval~ and after he shall have appzoved the same, they shall
be forwarded to the Comptroller of Publzc Bccount% of tle State of Texas, who
shall promptly register them and he shall deliver the Bonds in accordance w~th
~nstructlons to be g~ven by the Mayor The Comptroller, or a deputy designat-
ed in wr~tmng to act for the Comptroller, shall manually s~gn the Comptroller'~
certificate of registration prescribed herein to be printed on the back of
each bond, and the seal of sa~d Comptroller shall be affixed to each of said
bonds
28. SALE OF BONDS Thc One Million ~even Hundred
Thousand ($1,700,000 00) Dollars of Bond~ authorized by thzs Ordznance are
hereby awarded to, and shall be sold and d~l~vcred to
, fo~ thc prmce of par and accrued interest
to date of delivery, plus a premium of $
29 CONSTRUCTION FUND Proceeds iron~ the sale of E_ght
Hmndred Ninety Thousand ($890,000 00) Dollars of Bonds will be deposited ~nto
the C~ty of Denton Water and Sewer Syotem Construction Fund and shall be
bursed only for the purposes for which %a~d bonds ~.ere voted, and upon ap-
proval by the C~ty's Consulting Engineer Menses ~n th~ Construction Fungi
nmy, upon order of the C~ty Council, be ~nvested in direct obl~gatzons
or obligations the principal of and ~ntera~t on which are unconditionally
guaranteed by, the United States Governmen%, and to the extent permitted by
law, Federal Intermediate Credit Banks, Federal Land Banks, Federal National
Mortgage Association, Federal Home Loan Banks or Banks for Cooperatives,
which shall mature no later than one year aiter their dates of ~nvestment
30 REDEMPTION OF OUTSTANDING BONDS Proceeds from the
sale of E~ght Hundred Ten ~ousand ($810,000 00) Dollar° oi Bonds shall be
deposited in the Office of the State Treasurer of Texas, together with other
funds of the Cmty available for such purpose, to be used and applied ss
authorized and dzrected by Chapter 541~ Acts 1949, 51st Legmslature, as
amended by Chapter 377, Acts 1955~ 54th Legmslature The officers, agents
and employees of the C±ty are hereby authozmzed and dmrected to take such
actions and execute such instruments as may be necessary o~ expedment to
effect the deposit of funds wmth samd State Treasurer mn an amount suffzclent
to provide for the redempt~on~ payment and cancellatmon of a l~ke pr~ncmpal
amount of C~ty of Denton Waterworks and Sewer System Revenue Bonds, dated
November l, 1946, all of which emther mature on or before November l, 1961,
or become optional for prior redemptmon November l, 1961, and which optmonal
bonds have been called for redemption on ssmd date and proper notzce g~ven
as required by the ordinance authorizmng the mssuance of samd bones
31 All ordmnances and resolut~ons~ and parts thereof
· n conflict herewith are hereby expressly repealed znsofar as they conflzct
herewith
the l th day
Mayor~ City of Denton, Texas
S~6~tary,~r~ty-$~ Denton, Texas
~iQty AttS~ney/Cmty of Denton, Texas
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
I, the undersigned, C~ty Secretary of the C~ty of Denton,
Texas, do hereby certify that the above and foregoing is a true and correct
copy of an ordinance (and of the minutes pertaining thereto) passed by the
City Council of the C~ty of Denton, Texas, on the 12tb day of July, 1960,
authorizing the issuance of $1,700,000 O0 Czty of Denton, Texas, Water and
Sewer System Revenue Bonds, Ser~es 1960, which ordinance ~s duly of record
in the minutes of said C~ty Council
EXECU~D UNDER MY HAND and seal of sa~d C~ty, th~s the
day of July, 1960.
C~ty Secretary, City of Denton, Texas
(SEAL)