Loading...
HomeMy WebLinkAboutOrdinance No. 69�6 q ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS THE STATE OF TEXAS COUNTY OF DENTON CITY OF THE COLONY WHEREAS, the bonds hereinafer authorized were lawfully and favorably voted at an election duly held in said City on April 7, 1979; and WHEREAS, none of the general obligation bonds voted at said election has been authorized, issued or delivered; and WHEREAS, it is necessary and advisable to authorize, issue and deliver an installment or series of said bonds; and WHEREAS, the bonds hereinafter authorized and designated were voted and are to be issued and delivered pursuant to Art. 1175, V.A.T.C.S. THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY: Section 1. That said City's bonds are hereby authorized to be issued in the aggregate prinicpal amount of $805,000, for the purpose of providing $480,000 for constructing and Permanently equipping fire stations and the acquisition of sites therefor; $155,000 for acquiring and improving lands for park purposes; $25,000 for constructing an animal shelter; and $145,000 for constructing and improving streets in said City. !Section 2. That said bonds shall be designated as the ICITY OF THE COLONY, TEXAS GENERAL OBLIGATION BONDS, SERIES 1979. Section 3. That said bonds shall be dated August 1, 1979, shall be in the denomination of $5,000 each, shall be numbered consecutively from one upward, and shall mature serially on the maturity date, in each of the years, and in the amounts, respectively, as set forth in the following schedule: MATURITY DATE: AUGUST 1 YEARS AMOUNTS YEARS AMOUNTS 1981 $15,000 1994 $30,000 1982 15,000 1995 35,000 1983 15,000 1996 35,000 1984 15,000 1997 35,000 1985 15,000 1998 40,000 1986 20,000 1999 45,000 1987 20,000 2000 45,000 1988 20,000 2001 50,000 1989 20,000 2002 50,000 1990 25,000 2003 55,000 1991 25,000 2004 60,000 1992 25,000 2005 65,000 1993 30,000 Section 4. That the bonds scheduled to mature during the years, respectively, set forth below shall bear interest at the following rates per annum: maturities 1981 through 19 % maturities 19 through 19 % maturities 19 through 19 % maturities 19 through 19 % maturities 19 through 19 % maturities 19 through 19 % maturities 19 through 19 % maturities 19 through 19 8 maturities 19 through 19 % maturities 19 through 19 % maturities 19 through 19 % maturities 19 through 19 % maturities 19_ through 19_, % (Said interest shall be evidenced by interest coupons which shall appertain to said bonds, and which shall be payable in the manner provided and on the dates stated in the FORM OF BOND set forth in this Orinance. Section 5. That said bonds and interest coupons shall be issued, shall be payable, may be redeemed prior to their scheduled maturities, shall have the characteristics, and shall be signed and executed (and said bonds shall be sealed), all as provided, and in the manner indicated, in the FORM OF BOND set forth in this Ordinance. Section 6. That the form of said bonds, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of said bonds, and the form of the aforesaid interest coupons which shall appertain and be attached initially to each of said bonds, shall be, respectively, substantially as follows: NO. FORM OF BOND UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF THE COLONY, TEXAS GENERAL OBLIGATION BOND SERIES 1979 $5,000 ON AUGUST 1, , THE CITY OF THE COLONY, COUNTY OF DENTON, STATE OF TEXAS, hereby promises to pay to bearer hereof the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from date hereof, at the rate Df % per annum, evidenced by interest coupons payable Dn February 1, 1980, and semiannually. thereafter while this Dond is outstanding. THE PRINCIPAL of this bond and the interest coupons appertaining hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this bond or proper interest coupon, at the following, which shall constitute and be defined as the paying agent for this Series of bonds: MERCANTILE NATIONAL BANK AT DALLAS, DALLAS, TEXAS THIS BOND is one of a Series dated as of August 1, 1979, authorized, issued and delivered in the principal amount of $805,000, for the purpose of providing $480,000 for construct- ing and permanently equipping fire stations and the acquisition of sites therefor; $155,000 for acquiring and improving lands for park purposes; $25,000 for constructing an animal shelter; and $145,000 for constructing and improving streets in said City. i NO. FORM OF INTEREST COUPON ON I THE CITY OF THE COLONY, COUNTY OF DENTON, STATE OF TEXAS, promises to pay to bearer hereof the amount shown on this !interest coupon, in lawful money of the United States of America, without exchange or collection charges to the bearer hereof, unless due provision has been made for the redemption prior to scheduled maturity of the bonds to which the interest coupon appertains, upon presentation and surrender of this interest coupon, at the MERCANTILE NATIONAL BANK AT DALLAS, DALLAS, TEXAS, said amount being interest coming due that day on the bond, bearing the number hereinafter designated, of that issue of CITY OF THE COLONY, TEXAS GENERAL OBLIGATION BONDS, SERIES 1979, dated August 1, 1979. Bond No. xxxxx City Secretary xxxxx Mayor Section 7. That a special "Interest and Sinking Fund" is hereby created solely for the benefit of said bonds, and said Interest and Sinking Fund shall be established and maintained by said City at an official depository bank of said City. Said Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of said City, and shall be used only for paying the interest on and principal of said bonds. All ad valorem taxes levied and collected for and on account of said bonds shall be deposited, as collected, to the credit of said Interest and Sinking Fund. During each year while any of said bonds or interest coupons appertaining thereto are outstanding and unpaid, the governing body of said City shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise and produce the money required to pay the interest of said bonds as such interest comes due, and to provide and maintain a sinking fund adequate to pay the principal of such bonds as such principal matures (but never less than 2% of the original amount of said bonds as a sinking fund each year); and said tax shall be based on the latest approved tax rolls of said City, with full allowance being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in said City for each year while any of said bonds or interest coupons appertaining thereto are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of said bonds, as such interest comes due and such principal matures, are hereby pledged irrevocably for such payment, within the limit prescribed by law. Section 8. That the Mayor of said City is hereby authorized to ha -)e control of said bonds and all necessary records and proceedings pertaining to said bonds pending their delivery and their investigation, examination, and approval by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas. Upon registraton of said bonds, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate printed and endorsed on each of said bonds, and the seal of said Comptroller shall be placed in facsimile, on each of said bonds. ON AUGUST 1, 1994, or on any interest payment date thereafter, any outstanding bonds of this Series may be lredeemed prior to their scheduled maturities, at the option of said City, in whole, or in part, for the principal amount thereof and accrued interest thereon to the date fixed for redemption. At least thirty days prior to the date fixed ifor any such redemption said City shall cause a written notice of such redemption to be published at least once in a financial publication published in the City of New York, New York. By the date fixed for any such redemption due provision shall be made with the Paying Agent for the payment of the principal amount of the bonds which are to be so redeemed 'and accrued interest thereon to the date fixed for redemption. If such written notice of redemption is published and if due provision for such payment is made, all as provided above, the bonds which are to be so redeemed thereby automatically shall be redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right of the bearer to receive the redemption price from the Paying Agent out of the funds provided for such payment. IT IS HEREBY certified, recited and covenanted that this bond has been duly and validly voted, authorized, issued and delivered; that all acts, conditions and things required or proper to be performed, exist, and be done precedent to or in the voting, authorizaton, issuance and delivery of this bond have been performed, existed, and been done in accordance with law; that this bond is a general obligation of said City,issued on the full faith and credit thereof; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this bond, as such interest comes due and such prinicpal matures, have been levied and ordered to be levied against all taxable property in said City, and have been pledged irrevocably for such payment, within the limited prescribed by law. IT WITNESS WHEREOF, this bond and the interest coupons apppertaining hereto have been signed with the facsimile signature of the Mayor of said City and countersigned with the facsimile signature of the City Secretary of said City, and the official seal of said City has been duly impressed, or placed in facsimile, on this bond. xxxxx xxxxx City Secretary Mayor FORM OF REGISTRATION CERTIFICATE COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this bond has been registered by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this Comptroller of Public Accounts of the State of Texas Section 9. That the City covenants to and with the ,purchasers of the bonds that it will make no use of the proceeds of the bonds at any time throughout the term of this issue of bonds which, if such use had been reasonably expected on the date of delivery of the bonds to and payment for the bonds by the purchasers, would have caused the bonds to be arbitrage bonds within the meaning of Section 103(c) (�lof the Internal Revenue Code of 1954, as amended, or any regulations or rulings pertaining thereto; and by this covenant the City is obligated to comply with the requirements of the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City further covenants that the proceeds of the bonds will not otherwise be used directly or indirectly so as to cause all or any part of the bonds to be or become arbitrage bonds within the meaning of the aforesaid Section 103(c), or any regulations or ruling pertaining thereto. Section 9. That it is hereby officially found and determined that a case of emergency or urgent public necessity exists which requires the holding of the meeting at which this Ordinance is passed, such emergency or urgent public necessity being that the proceeds from the sale of said bonds are required as soon as possible and without delay for necessary and urgently needed public improvements; and that said meeting was open to the public, and public notice of the time, place, and purpose of said meeting was given, all as required by Vernon's Ann. Civ. St. Article 6252-17, as amended. Section 10. That said bonds are hereby sold and shall ibe delivered to for cash for the par value thereof and accrued interest thereon to the date of delivery, plus a premium of $ It is hereby officially found, determined and declared that said purchaser is the highest and best bidder for said bonds and that said bonds have been sold at public sale to the bidder offering the lowest net interest cost after receiving bids pursuant to an Official Notice of Sale and Official Statement, dated July 16, 1979, prepared and distributed in connection with the sale of the bonds. Said Official Notice of Sale and Official Statement have been and are hereby approved by the City Council. It is further officially found, determined and declared that the statements and representations contained in said Official Notice of Sale and Official Statement are true and correct in all material respects, to the best knowledge and belief of the City -ouncil.