1961-013THE STATE OF TE~L~S
COUNTY OF DENTON
CITY OF DENTON
On th~s the ~ ~ day of June, 1961, the City Council
of the City of Denton, Texas, convened in ~ meeting, at the
regular meeting place, with the followmng members present, to-wit
Frank R. Barrow, Mayor,
Thomas E. Noel,
George F. Spuller,
Counc ilmen,
W F. Brooks,
G. Emery Taylor,
W. D. Buttrmll, City Secretary,
and with the following absent. ~~ ,
constituting a quorum, at which time the followzug proceedings were had
Councilman ~/O~Z introduced an ordinance
and moved that it be passed The motion was seconded by ~ounct~man
~ The motmon with it the of the ordinance
carrying
p~ssage
prevailed by the following vote
AYES Councf~men Noel, Spuller, Brooks and Taylor and
M~yor Barrow
NOES None
The ordinance as passed ms as follows
oRDINANCE NO.
BY THE CITY COUNCIL OF THE CITM OF D~TON, TEXAS,
PROVIDING FOR THE ISSUANCE OF CITY OF D~TON~ TEXAS~
R~.EOTRIC REVENUE BONDS~ SERIES lg61, IN THE AGGP~E-
GATE AMOUNT OF $~,200,000 00, BEARING INTEREST AT
THE RATES HEREINAFT---ER SET FORTH~ TO SECURE FUNDS
FOR THE PURPOSE OF INPROVING AND EXTENDING THE CITY'S
~,EC~IRIC LIGHT AND POWER SYST~, PRESCRIBING THE
FORM OF BOND, PLEDGING ~ REVENUES OF THE CITY'S
E~.ECTRIC LIGRT AND POWER SYST~4 TO THE PAYMENT OF
THE PRECIPAL OF AND INTEREST ON SAID BONDS, PRO-
VIDING FOR THE EXPENSE OF OPERATING SAID
MAKING 0ERTAIN COVENANTS OF TfiE CITY IN I~-~ERENCE
TO THE BONDS AND THE BOND FUND FROM WHICH S~ID
PRINCIPAL AND IlflEREST ARE TO BE PAID, PROVIDING
THAT THE HOLDER OR HOLDERS OF SAID B~NDS SH~LL
NEVER HAVE T~E RIGHT TO D~AND PAYMENT OF
OBLIGATIONS OUT OF ANY FUNDS RAISND OR TO BE RAIS-
ED BY TAXATION, AND REPEALING ALL ORDINANCES IN CON-
FLICT EEI~-%rlTH.
WHEREAS~ on October 12, 1954, the City Commission of the
City of Denton, Texas, passed an ordinance, as amended on November 2, 1954,
directing the issuance of $4,300,000 00 City of Denton, Texas, Electric
Revenue Bonds, Series 1954, dated November l, 1954, (hereznafter called
"Series 1954 Bonds"), and
WHEREAS, on May 17, 1955, the City Commmssion of the
City of Denton, Texas, passed an ordinance directing the issuance of
$1,350,000.00 City of Denton, Texas, Electric Revenue Bonds, Series 1955,
dated May l, 1955, (hereinafter called "Series 1955 Bonds'V), and
WHEREAS~ on November 8, 1955, the City Commmssion of
the City of Denton, Texas, passed an ordinance directing the mssuance of
$1,387,000 O0 City of Denton, Texas, Electric Revenue Bonds, Sermes B, 1955,
dated November l, 1955, (hereinafter called "Series B, 1955 Bonds"), and
WHEREAS~ said bonds above described and said authorizing
ordinances reserved to the City the right to issue Additional Parmty Revenue
Bonds, under the conditions set forth in Section 21 of said 1954 authorizing
erdinance, and
~EtEREAS, the conditions prescribed in Section 21 of said
1954 authorizing ordinance have been l~ulfllled and exist so that the City now
has authority under said Section to mssue the Addmtlonal Bonds herein
authorized, and
WHEREAS, the City Council has heretofore determined that
it is to the best interest of the City and of its citmzens that it issue
additional revenue bonds of said City for the purpose of mmprovmng and ex-
tending the City's Electric Light and Power System, and
WHEREAS~ pursuant to such determination, the Cmty Council
of the City of Denton, Texas, passed an ordmnance on January 7, 1960, calling
an election on the following proposition
"Shall the City Councml of the City of Denton,
Texas, be authorized to issue the bonds of said City in
the amount of $5,200,000.00, maturing sermally in such
installments as may be fixed by the Cmty Councml, 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 Electric Light and Power System, to be issued
mn accor~_e~uce with and secured in the menner provided in
Articles llll-lll8, both inclusive, of the Revised Civml
Statutes of Tex~s, 1925, as amended, each bond to be con-
dit~oned that the holder thereof sha&l 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 Electric Light
and Power System
Thirty years is estimated as the probable period
of useihalness of such improvements"
WHEREAS, the election held in said City on the BOth
day of January, 1960, a majority of the resident, qualified electors ownmng
taxable property in said City and who had duly rendered the same for tax-
ation voting at said election sustained the proposition to issue the bonds
hereinafter described by the following vote
"FOR THE ISSUANCE OF ELECTRIC LIGHT AND
POWER SYSTEM REVENUE BONDS" llS1 Votes~
"AGAINST THE ISSUANCE OF ELECTRIC LIGHT
AND POWER SYSTEM P~ENUE BONDS" 476 Votes~
as is reflected mn the election returns heretofore filed with the City
Secretary, and
WHEREAS, it is now necessary and proper that the City
Council proceed with the issuance of such revenue bonds,
THE COUNCIL OF THE CITY OF D~NTON HEBw~y ORDAINS
i That to provide funds for the purpose of improvmng
and extending the City's Electric Light and Power System, pursuant to the
Constitution and Statutes of the State of Texas, including partmcularly
Articles llll to lll8, both inclusive, of 1925 Revised Cmvil Statutes of
Texas, as amended, and the Charter of said City, there shall be mssued
"City of Denton, Texas, Electric Revenue Bonds, Series 1961", aggregating
Five Million T~o Hundred Thousand ($5,200,000 00) Dollars, numbered from
One (1) to Five Thousand T~o Hundred (5,200), both mnclusmve, of the de-
nomination of One Thousand ($1,000 00) Dollars each
2 That said bonds shall be dated January l, 1961,
and shall bear interest from May l, 1961, at the rates as follows
Bonds Nos i to ~, both mncl , y~ ~ per annum,
Bonds Nos. to " per mum,
Bonds Nos ~ to ~, " " per ~,
Bon~ Nos. ~ to ~" '~ ~ per ~,
Bonds Nos ~$ to ~, " " per ~,
~able November l, l~l, ~d semi-~u~ly thereafter on ~ 1st ~d
~ember 1st of each ye~, ~d sh~l bec~e due ~d payable seri~ly as follow
BO~S ~ES ~I~ DATES ~O~S
I to 15, both incl., November l, 196~ $ 15,000 00
16 to S0, " " November l, 1964, 15,000 00
31 to 85, " " November l, 1965, 55,000 00
86 to 155, " " November l, 1966, 70,000 O0
156 to 225, " " November l, 1967, 70,000 00
226 to ~00, " " November l, 1968, 75,000 00
B01 to B75, " " November l, 1969, 75,000 O0
S76 to 460, " " No.tuber l, 1970, 85~000 O0
461 to 545, " " November l, 19~, 85,0~ O0
5~ to 6~5, " " November l, 1972, 90,~0 00
6S6 to 730, " " November l, 1973, 95,000 00
7~1 to 825, " " November l, 1974, 95,000 00
826 to 925, " " November l, 1975, lO0,~0 00
926 to 10S0, " " No~er l, 1976, 105,000 O0
10~l to ll40, " " November l, 1977, llO, 000 00
ll41 to 1255, " " November l~ 1978, llS,000 O0
1256 to 1~75, " " November l, 1979, 120,000 00
1~76 to 1500, " " November l, 1980, 125,000 O0
1501 to 1625, " " November l, 1981, 125,000 O0
1626 to 1755, " " November l, 1982, 1SO,000 O0
1756 to 1890, " " Nov~ber l, 198B, 1SS,000 00
1891 to 20B5, " " No.tuber l, 1984, 145,000 00
20~6 to 2~90, " " November l, 1985, 355,~0 O0
2S91 to 2905, " " November l, 1986, 515,000 00
29~ to ~5, " " Nov~ber l, 1987, 540,000 00
~6 to 4005, " " November l~ 1988, 560,000 O0
4006 to 4590, " " November l, 1989, 585,000 O0
4591 to 5200, " " November l, 1990, 610,000 O0
~ ~t said bonds ~d coupons sh~l be p~able ~ law-
~ money of the United S~tes of ~erica at the Fi~t State ~k of ~nton,
~nton, Texas, or, at the option of the holder, at the Fi~t National ~
~ ~las, Eas, ~xas, with~t exch~ge or collection charges to the oEer
or holder thereof
4 ~ Bonds N~bers ~e ~ous~d ~irty ~e (1,OSl) to
Five ~ous~d ~ H~ed (5,200), both Eclusmve, the Cmty rese~es the
opti~ of c~l~g each such bond for rede~tion prmor to ~turity on ~y
interest ~ent ~te on ~d after November l, 1976, at p~ ~d accrued E-
terest to ~te so f~ed for redemption, plus the followm~ premiss if re-
deemed at the follo~g t~s
November l, 1976 or May l, 1977 -
November l~ 1977 or Nay l, 1978 -
November l, 1978 or May l, 1979
November l, 1~79 or May l, 1980 -
November l, 1980 or May l, l~81
There shall be no premium on such bonds whmch may be redeemed November l, 1981,
or on any interest payment date thereafter Thirty days' notice of such call
shall be given mn writing to the places of payment and notmce shall be pub-
lished in a financial publication published mn the City of New York, New York
Said notmce shall appear in said publication mn at least one issue, the date of
said issue being not less than thirty days prior to the date so fixed for re-
demption. If any such bond is called for redemptmon in said manner and if
funds sufficient to pay the redemption price shall have been duly placed mn
the banks of payment by the date fixed for redemption, it shall not thereafter
bear interest If fewer th-~u all of the optional bonds are called for re-
demption, they shall be called in their ~nverse numerical order
5 That each of samd bonds and interest coupons shall
be executed by the imprinted facsimmle signature of the Mayor and counter-
signed by the imprinted facsmmmle signature of the City Secretary, and the
corporate seal of the City of Denton, Texas, shall be impressed upon each of
said bonds Such facsimile signatures shall have the same effect as manual
s mgnatures
6 T hat said bonds shall constitute special obligatmons
of said City of Denton and each of said bonds shall contamn the provision that
the holder thereof shall never have the rmght to demand payment of said obli-
gation out of funds raied or to be raised by taxation
7 The form of said bonds shall be substantially as
follows
NO. $1,000 00
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF D~TON
CITY OF D~NTON
ELECTRIC REVENUE BOND
SW. RIES 1961
The City of Denton, mn the County of Denton, State of
Texas, a munmcipal corporation duly mncorporated under the laws of the State
of Texas, for value received, hereby acknowledges mtself mndebted to and
promises to pay to the bearer on the 1st day of November, 19 , the sum
of
ONE THOUSAND DOLLARS
in lawik~l money of the United States of America, with interest thereon from
May l, 1961, at the rate of ~.% per annum, evidenced by coupons payable
November l, 1961, and semi-annually thereafter on Nay 1st and November 1st
of each year, until the principal sum shall be pald~ which interest is pay-
able in lawful money of the United States of America, upon presentation and
surrender of proper coupons as they severally become due, both principal and
interest being payable at the First State Bank of Denton, Denton, Texas~
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
This bond ~s one of a series oF bonds of l~ke tenor and
effect, except as to number, interest rate, maturity and right of prior re-
demption, numbered One (1) to Five Thousand Two Hundred (5,200), both in-
clustve, of the denomination of One Thousand ($1,000 00) Dollars each, aggre-
gating Five Million Two Hundred Thousand (~5, 200, 000 00) Dollars, issued by
the City of Denton, Texas, for the purpose of improving and extending the
City's Electric Light and Power System, in accorM~uce with the Constitution
and laws of the State of Texas and the Charter of said City, and pursuant to
an ordinance passed by the City Council, duly recorded ~n the minutes of
said City Council
The date of this bond ~n conformity with the ordinance
above mentioned is January l, 1961
*(The City reserves the option of calling Bonds Numbers
One Thousand Thirty One (1,031) to F~ve Thousand Two Hundred (5,200), both
inclusive, of the issue of which th~s ~s one, for redemption prior to matur-
ity on any ~nterest payment date on and after November l, 1976, at par and
accrued lnterest~ plus the following premiums if redeemed at the following
times
November l, 1976 or Nay l, 1977 -
November l, 1977 or Nay l, 1978
November l, 1978 or Nay l, 1979 l~
November 1, 1979 or May 1, 1980 1~
November l, 1980 or Nay l, 1981
There shell be no premium on such bonds which may be redeemed November l,
1981, or on any interest payment date thereafter Thirty days' notice of
such call shell be given in writing to the places of payment and said notice
shal~l be published in a financial publication published in the City of New
York~ New York Said notice shall appear in said publication mu at least
one issue~ the date of said ~ssue bezug not less than thirty days prior to
the date so fixed for redemption If such bond is called for redemption in
said 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 interest If fewer than all of the optional
bonds are called for redemption~ they shall be called ~n their inverse
numerical order )
The City reserves the right to issue additional parity
revenue bonds for electric l~ght and power system, waterworks and sewer systeE
improvements and extensions~ under the conditions stated ~n the ordinance
authorizing this bond~ said bonds being payable from the same source as are
the Bonds of this issu% the Series B~ 1955 Bonds~ the Ser~es 1955 B~ds and
the Series 1954 Bonds and secured by the same revenues~ and shall be on a
parity with this issue of bc~ds, the Serzes B~ 1955 Bonds, the Ser~es 1955
Bonds and the Series 1954 Bonds
In the event the City later exercises the r~ght to
combine the operations of its electric light~ waterworks and sanitary sewer
systems reserved to it in Section 2S of the ordinance authorizing the Series
1954 Bonds, the bonds of this issue, the Series B, 1955 Bonds~ the Ser~es
1955 Bonds and the Series 1954 Bonds, together with any additional electric
light and power system revenue bonds subsequently issued and any revenue
bonds theretofore or thereafter issued for waterworks and sanitary sewer pur-
poses~ to the extent and in the mauner permitted by law at such time~ will
be payable from the revenues of the combined systems~ including all sxlditions,
extensions and ~mprovements thereafter made to sa~d combined systems
Each successive holder of this bond and each successive
holder of each of the coupons hereto attached, is conclusively presumed to
forego and renounce his equities in favor of subsequent holders for value
without notice, a~d to agree that this bond and each of the coupons hereto
attached, may be negotiated by delivery by ~ person having possession hereof,
howsoever such possession may have been acquired, and that any holder who shall
have taken this bond or auy of the coupons From any person for value and with-
out notice, thereby has ac~ired absolute title thereto, free from any defense~
enforceable against any prior holder and free from all equities and claims of
ownership of any such prior holder The City of Denton and its officials and
the paying agents hereinabove n~med shall not be affected by a~y notice to the
contrary
This bond and the series of which it ~s a part, together
w~th City of Denton, Texas, Electric Revenue Bonds, Series B, 1955, dated
November l, 1955, ~ssued in the amount of ~1,387,000 00, City of Denton,
Texas, E~ectric Revenue Bonds, Ser~es 1955, dated ~y l, 1955, issued in the
a~ount of $1,350,000 00, and City of Denton, Texas, Electric Revenue Bonds,
Series 1954, dated November l~ 1954, issued in the amount of $4,300,000 00,
constitute special obligations of the City of Denton, Texas, payable both as
to principal and interest from and secured by a first lien on ~ud pledge of
the net revenues of the City's Electric Light and Power System, and the
holder hereof shall never have the right to demand payment of this obligation
out of any Funds raised or to be raised by taxation
AND IT IS HEEEBY CERTIFIED AND RECITED that the issuance
of this bond and the series of which ~t is a part, is duly authorized by law
and by a majority c~ the resident, qualified electors owning taxable property
· n said City, and who have duly rendered the s~me for taxation, voting at an
election held for that purpose within said C~ty, that all acts, conditions
and things required to exist precedent to and in the issuance of this bond to
render the same lawi~l and valid have been properly done, have happened and
been performed in regular and due tzme, form and manner as required by the
Constitution and laws of the State of Texas, and the ordinance hereinabove
mentioned and that this series of revenue bonds does not exceed any consti-
tutional or statutory l~m~tations, and that provision has been made for the
payment of the principal and interest of this bond and the series of which
it is a part by irrevocably pledging to the payment thereof net revenues of
the Electric L~ght and Power System of the C~ty of Denton
IN TESTIMONY WHEREOF, the City Council of the C~ty of
Denton, Texas, has caused the seal of said City to be impressed hereon and
this bond and the annexed coupons to be executed by the facszm~le s~gnature
of the M~yor and countersigned by the facsmmile s~gnature of the City
Secretary
Mayor, City of Denton, Texas'
COUNTERSIGNED
City Secretary, City of Denton, Texas
*(This paragraph should be omitted from Bonds Nos I to 1030, both incl )
8 The form of said coupons shall be substantially as
follows
NO.
ON THE 1ST DAY OF
,, , 19
The City of Denton, Texas, out of the revenues specified
in the bond to which this coupon is attached, will pay to the bearer *(unless
the bond to which this coupon is attached shall have been called for previous
redemption as therein provided and provision for the redemptmon thereof made),
at the First State Bank of Denton, Denton, Texas, or, at the option of the
holder, at the First National Bank mu Dallas, Dallas, Texas, wmthout exchange
or collection charges to the owner or holder hereof, the sum of
.... ($ ) Dollars, mn lawl~l money of
the United States of America, said sum being __ months' interest due that
day on "City of Denton, Texas, Electric Revenue Bond, Series 1961", bearing
the number hereinafter specified, dated January 1, 1961 The holder hereof
shall never have the right to demaud payment of this obligation out of funds
raised or to be raised by taxation Bond No
City Secretary Mayor
*(This parenthetical expression shall be printed only in coupons maturing
May 1, 1977~ and subsequent )
9 The form of Comptroller's certificate, which shall
be printed on the back of each bond shall be substantially as follows
OFFICE OF COMPTROLLER
STATE OF TEXAS
I HEREBY CERTIFY that there is on file and of record ~n
m~ office a certificate of the Attorney General of the State of Texas to the
effect that this bond has been exammned by him as required by law, and that
he finds that it has been issued in conformity with the Constmtution and laws
of the State of Te~s~ and that ~t ~s a valid and binding special oblmgation
of the City of Denton~ Texas, payable from the revenues pledged to its payment
by smd in the ordinance authorizing same, and said bond has this day been
registered by me.
WITNESS MY HAND and seal of off~ce at Austin, Texas,
Comptroller of P~bl~c Accounts of the
State of Texas
l0 All of the covenants, provismons~ powers and con-
ditions contained in the ordinance passed on October 12, 1954~ as amended
November 2, 1954, authorizing the Series 1954 Bonds, securing such bonds,
shall secure said Sermes 1961 Bonds, and apply to and govern the rights of
the holders thereof, as fully and effectually and to the same extent and ~n
the same manner as if all of said covenants, provisions, powers and conditions
have been here fully set forth.
The said Series 1954 Bonds, the Series 1955 Bonds, the
Series B, 1955 Bonds and the Series 1961 Bonds shall be on a parity in all
respects so that no bond of any series shall be entitled to any preference
or ~riority over any bond of the other series
ll Without limiting the generality of the provisions of
Section l0 above, the City specmfically covenants~ as follows
A RATES. The City will charge and collect for services
rendered by the System rates sufficient to p~y all operating, m~lntenance,
depreciation, replacement and betterment expenses, and other costs deductible
in determining Net Revenues, and to pay the ~nterest on and principal of Bonds
and the Reserve Fund payments, as they becGme due Net Revenues mean the
gross revenues of the System less the expense of operation and maintenance,
including all salaries, labor, materials, repairs and extensions necessary
to render efficient service, provided, however, that only such repairs and
extensions, as in the Judgment of the City Council are necessary to keep the
System in operation and render adequate service, or such as m~ght be neces-
sexy to meet some physical accident, shall be deducted ~n determining Net
Revenues. No free service shall be allowed
B SYST~ FUND. All revenues received from the operation
of the System shall be deposited in this Fund, and shall first be expended to
pay all operation and maintenance expenses
C INTERWn~T AND RED--ION FUND (1) The C~ty ~s
presently making monthly deposits mu this Fund to the credit of the outstand-
ing bonds an amount equal to 1/6th of the next maturing sem~-annual zuterest
and 1/12th of the next maturing principal. These deposits shall be increased
to an amount necessary for the payment of maturing interest and principal on
these $5,200,000 00
(2) Bond Ordinances authorizing outstanding Electric
Revenue Bonds recite that the aggregate amount to be accumulated in the
Reserve Fund shall be $38?, 000 00, which amount was on deposit therein and
accruing thereto, on M~y l, 1961 The City deposited in the Reserve Fund
from available funds on Nay 9, 1961, the sum of $3?,620 00, as an additional
Reserve in anticipation of the issuance of these bonds This amount repre-
sents a monthly deposit of $4,180.00 from January lO, 1961, through
September 10, 1961 The same shall thereafter be supplemented on the 10th
d~y of each month, con~nencing October 10, 1961, by the amount of $4,180 00
until such time as the Reserve Fund totals $637,800 O0 Whenever Additional
Bonds are issued, the aggregate amount to be accumulated and maintained in
the Reserve Fund sBa!l be increased to an amount which will be not less than
~he m~xmmum principal and interest requirements on all bonds to be outstand-
ing after the issuance of said Additional Bonds
D EXTENSION AND IMPROV~2~ENT FUND Under existing
Bond Ordinances, the City is required, after the above requirements have
been met, to deposit in this Fund on or before the 10th d~y of ea~ month,
a sum equal to not less than 12~ of the gross revenues of the System during
the preceding month Monies in said Fund can be used only for the purpose
of paying the cost of extensions and improvements to the System, or to retire
prior to maturity Revenue Bonds outstanding against the System except that
to the extent that menies in the Interest and Redemption Fund and Reserve
Account are Insufficient therefor, said monies must be used for the payment
of maturing principal and interest on Bonds
E. EXCESS REVENUES Any revenues in excess of those
~equired to maintamn the Funds as above requmred may be used for the re-
demption of Bonds then eligible for prior redemption, or for the payment
of any lawfully issued subordinate lien bonds, or for extensions of the
System to the extent nor or hereafter permmtted by law, and mr, in the opinmor
of a competent and generally recognized engineer, such extensions will pro-
duce sufficient revenues to pay for their maintenance and operatmon and will
impose no additional expense on the then existing system, or for any other
lawful purpose
F. ADDITIONAL BONDS The City reserves the right to
issue Additional Bonds of equal dignity wroth the outstanding Bonds and these
$5,200,000.00 Bonds, under the followmug condmtmons
(1) Each of the Funds contains the amount of money then
r,equired to be on deposit therein,
(2) The Net Earnings of the System for any consecutmve
twelve months out of the fifteen months next preceding the date of the bonds
then to be issued, or for the fiscal year next preceding the d~te of the
bonds then to be issued, are equal to at least I 50 tames the combined prin-
cipal and interest requirements of all bonds to be outstanding after the
issuance of the Additional Bonds when such requirements are the greatest,
as such Net Earnings are shown by a report of a Certified Public Accountant,
(3) A certificate by an independent engineer or engineer-
lng firm of national reputation shows that the annual Net Earnings of the
System for each of the years from the date of such certificate until the
final maturity date of the last maturing bond will be equal to at least I 50
times the maximum ~mount required in any year to p~y principal of and inter-
est on all bonds to be outstanding after the mssuance of the Additional Bonds,
(4) That the proceeds of such bonds shall be used solely
for the making of improvements and extensions of the electric light, water-
works and sewer system which may be determined by the City Council to be
necessary and economically feasible,
(5) The Additional Bonds are made to mature on November l,
(6) The Additional Bonds previously shall have been
voted by the qualified property taxpaying voters of the City
G ACCOUNTS AND ~CCOUNTING REPORTS The City shall
keep proper books of records and accounts (separate and apart from all other
records and accounts of the Cmty) in whmch complete and correct entries shall
be m~ie of all transactions relating to the System, and shall have said books
audited once each fiscal year by an independent certified public accountant
H INSURANCE The City wall mamntain for the benefit
of the holders of the bonds insurance mn the amounts and of the kmnds which
are usually carried by private companmes operating smmilar properties
I COMBINED SYST~2~S In the event the City later obtains
statutory authority it may combine the operations of its Electric, Water and
Sewer Systems If and when such an event occurs these bonds, together wmth
~uy revenue bonds issued for water or sewer purposes then outstanding and any
~iditional revenue bonds thereafter issued for electric, water or sewer pur-
poses, will be payable from and secured by an mrrevocable pledge of and lien
on the revenues of such combined systems, provided, however, that the systems
will not be combined unless a report of an mudependent firm of certified
public accountants shows that the aggregate net revenues of the Electric,
Water and Sewer Systems for the precedmng fiscal year are not less than 1-3/4
times the maximum aggregate total amount of principal and mnterest to become
due in any future twelve-month period on all revenue obligatmons then out-
standing which were issued for electric, water and sewer purposes
l~ APPROVAL BY ATTORNEY GENERAL. This issue of bonds
and the record relating thereto shall be submitted to the Attorney General of
Texas~ for his approval~ and after he shall have approved the same~ they shall
be forwarded to the Comptroller of Public Accounts of the State of Texas, who
shall promptly register thom and he shall deliver the Bonds in accordance with
instructions to be given by the Nayor The Comptroller~ or a deputy designat-
ed in writing to act for the Comptroller~ shall ~auually sign the Comptroller's
certificate of registration prescribed heremu to be przuted on the back of
each bond, and the seal of said Comptroller shall be affixed to each of said
bonds
l~. The sale of the bonds herein authorized to
at a price of p~r and accrued Lnterest to date of delivery plus a premium of
~ ~/t~/~ ,.~0 , is hereby confirmed Delivery of such bonds shall be msde
to such p~rchaser as soon as may be after the passage of this ordinance upon
payment therefor in accor~?~uce with the terms of sale
14 All ordmuances and resolutions, and parts thereof
in conflict herewith are hereby expressly repesled insofar as they conflict
herewith
PASSED AND APPROV~his the ~day of June, 1961
i~yo~, City of 'lJenton~ Texas
ATTEST
City Secretary, C£ty of Denton," TeXas
APPROVED ~AS TO LF~ALITY ~r~J~o passage
~rit~torne~ C~t~y oT ~nton, Texas
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF D~TON
I, the undersigned, City Secretary of the City of Denton,
Texas, do hereby certify that the above and foregoing is a true and correct
copy of an ordinance (and o£ the mmnutes pertaiuing thereto) passed by the
City Council of the City of Denton, Texas, on the ~ d~y of June, 1961,
authorizing the issuance of $5,200,000 00 City of Denton, Texas, Electric
Revenue Bonds, Series 1961, whmch ordinance ms duly of record mn the minutes
of said City Council
EXECUTED UNDER MY HAND and seal of sazd City, this the
~ dray of June, 1961
CmtY SeCretary,~ Ciby- of 'Denton, Texas
(sm )
TO TH]~ HONORABLE CITY COUNCIL OF THE CITY 0I~ DIe'TON, TEXAS~
The bids having been opened and read by the fiscal agent
for the City and the tabulation thereof made and in compliance
with Section 9.0~ of the Oity 0hatter, I ~eoo~aend that the
bid made by Smith, Barney and Company, New York, and Associates
be accepted for the City of Denton electric revenue bonds,
Series 1961, in the aggregate amount of $5,200,000.
TO 0ERTIFY WHIOH, witness my hand this 13th day of June,
A D 1961.