HomeMy WebLinkAboutOrdinance 7812 ORDINANCE NO. 7812
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF FOUR
HUNDRED FIFTEEN THOUSAND DOLLARS ($415, 000) OF
CITY OF FORT WORTH REFUNDING BONDS, SERIES 1978A,
BEARING INTEREST AT THE RATES HEREINAFTER SET FORTH,
AND PROVIDING FOR THE LEVY, ASSESSMENT AND
COLLECTION OF A TAX SUFFICIENT TO PAY THE INTEREST
ON SAID BONDS AND TO CREATE A SINKING FUND FOR THE
REDEMPTION THEREOF AT MATURITY; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING
THAT THIS ORDINANCE SHALL BE IN FORCE AND EFFECT
FROM AND AFTER THE DATE OF ITS PASSAGE
WHEREAS, the City Council of the City of Fort Worth, Texas,
heretofore passed Ordinances authorizing the issuance of the
following Bonds of said City:
City of Fort Worth General Purpose Bonds, Series
1976A, dated March 1, 1976 , bearing interest at
the rates of 6 .25%, 5.90%, 5.35%, 5.50%, 5.70%,
5 .80%, 5.90%, 6 .00% and 4.25% per annum, authorized
by Ordinance No. 7303 on February 23, 1976, in the
principal amount of $9, 000, 000; and
City of Fort Worth Sanitary Sewer System and
Sewage Disposal Plant Bonds , Series 1976B, dated
March 1, 1976 , bearing interest at the rates of
6 .25%, 5.90%, 5.35%, 5.50%, 5.70%, 5.80%, 5.90%,
6 .00% and 4.25% per annum, authorized by
Ordinance No. 7304 on February 23 , 1976 , in the
principal amount of $11, 000, 000; and
WHEREAS, the City is authorized to refund said bonds in
accordance with the provisions of Vernon's Annotated Civil
Statutes, Article 717k-3 ; and
WHEREAS, the City has determined to refund the following
bonds out of said Series 1976A Bonds and Series 1976B Bonds now
outstanding:
Out of the General Purpose Bonds , Series 1976A:
Bonds Numbers 1645 through 1656 in the principal
amount of $5, 000 each, aggregating $60, 000,
maturing on March 1, 1999;
Out of the Sanitary Sewer System and Sewage
Disposal Plant Bonds, Series _1976B:
Bonds Numbers 1937 through 2024 in the
principal amount of $5, 000 each, aggregating
$440, 000, maturing on March 1, 1999; and
WHEREAS , the owner of the above bonds has consented to the
refunding of the bonds to be refunded hereunder and will present the
bonds being refunded in exchange for the bonds herein authorized; and
WHEREAS , the refunding of said bonds will result in
a saving of both principal and interest;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL
OF THE CITY OF FORT WORTH, TEXAS :
SECTION 1.
That the bonds of said City to be called "City of
Fort Worth Refunding Bonds , Series 1978A" be issued under and
by virtue of the Constitution and laws of the State of Texas,
and the Charter of said City, for the purpose of refunding
$500, 000 of the Bonds described in the third "WHEREAS " of the
preamble of this Ordinance.
SECTION 2.
That said bonds shall be numbered from 1 through 83,
of the denomination of $5, 000 each, aggregating $415, 000.
SECTION 3.
That said bonds shall be dated September 1, 1978, and
shall become due and payable serially as follows :
BONDS NUMBERS MATURITY DATES AMOUNTS
1 through 13 March 1, 1979 $ 65, 000
14 through 23 March 1, 1980 $ 50, 000
24 through 33 March 1, 1981 $ 50, 000
34 through 43 March 1, 1982 $ 50, 000
44 through 53 March 1, 1983 $ 50, 000
54 through 63 March 1, 1984 $ 50, 000
64 through 73 March 1, 1985 $ 50, 000
74 through 83 March 1, 1986 $ 50, 000
SECTION 4.
That said bonds shall bear interest from their date
at the rate of 4 3/4/ per annum, payable March 1, 1979 and semi-
annually thereafter on March 1 and September 1, of each year.
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SECTION 5.
That the principal of and interest on said bonds
shall be payable upon presentation and surrender of proper bond
or interest coupon at the Manufacturers Hanover Trust Company,
in the Borough of Manhattan, City and State of New York.
SECTION 6 .
That each of said bonds shall be executed for and on
behalf of the City of Fort Worth, Texas, by the facsimile
signature of the Mayor, approved as to form and legality by the
facsimile signature of the City Attorney, and attested manually
by the City Secretary, with the seal of the City duly affixed
to, . or impressed, or printed, or lithographed thereon, and the
interest coupons shall be executed with the lithographed or
printed facsimile signatures of the Mayor and City Secretary of
the City of Fort Worth, Texas, and such facsimile signatures
shall have the same effect as if manually placed on said bonds
and coupons .
SECTION 7.
That the form of said bonds shall be substantially as
follows :
NO. UNITED STATES OF AMERICA $5, 000.00
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF FORT WORTH
REFUNDING BOND
SERIES 1978A
The City of Fort Worth, in the County of Tarrant, State
of Texas, a municipal corporation duly incorporated under the laws
of the State of Texas, for value received, hereby promises to pay
to the bearer hereof., on the lst day of March, 19 the sum of
FIVE THOUSAND DOLLARS
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in lawful money of the United States of America, with interest
thereon from date hereof at the rate of 4 3/4% per annum, evidenced
by coupons payable March 1, 1979, and semi-annually thereafter on
March 1 and September 1, of each year, both principal and interest
payable upon presentation and surrender of bond or proper coupon
at the Manufacturers Hanover Trust Company, in the Borough of
Manhattan, City and State of New York, and the City of Fort Worth,
Texas, is hereby held and firmly bound, and its faith and credit
and all taxable property in said City are hereby pledged for the
prompt payment of the principal of this bond at maturity and the
interest thereon as it accrues .
This bond is one of a series of eighty-three (83) bonds of
like tenor and effect, except as to number and maturity, numbered
from one (1) to eighty-three (83) , both inclusive, of the denomina-
tion of Five Thousand Dollars ($5, 000.00) each, aggregating Four
Hundred Fifteen Thousand Dollars ($415, 000) , issued for the purpose
of refunding outstanding Bonds of said City, under and by virtue
of 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 of the City of Fort Worth, Texas, which ordinance is duly
of record in the minutes of said City Council.
The date of this bond in conformity with the ordinance
above mentioned is September 1, 1978.
In addition to all other rights, the holders of this
series of bonds shall be subrogated to all pertinent and necessary
rights of the holders of the obligations being refunded thereby.
And it is hereby certified that the issuance of this
bond, and the series of which it is a part, is duly authorized by
law; that all acts , conditions and things required to be done
precedent to and in the issuance of this series of bonds, and of
this bond, have been properly done and performed and have happened
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in regular and due time, form and manner as required by law;
that sufficient and proper provision for the levy and collection
of taxes has been made, which, when collected, shall be appro-
priated exclusively to the payment of this bond and the series
of which it is a part, and to the payment of the interest
coupons hereto annexed as the same shall become due; and that
the total indebtedness of said City of Fort Worth, Texas,
including the entire series of bonds of which this is one, does
not exceed any constitutional, statutory or charter limitation.
In witness whereof, this bond has been signed by the
printed or lithographed facsimile signature of the Mayor of
said City, attested by the manual signature of the City Secretary
and approved as to form and legality by the printed or lithographed
facsimile signature of the City Attorney, and the interest coupons
attached hereto have been signed by the printed or lithographed
facsimile signatures of the Mayor and City Secretary, and the
official seal of said City has been duly affixed to, or impressed,
or printed, or lithographed on this bond.
CITY OF FORT WORTH, TEXAS
By
Mayor
ATTEST :
City Secretary
APPROVED AS TO FORM AND LEGALITY:
City Attorney
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SECTION 8.
That the proceeds from all taxes collected for and on
account of this series of bonds shall be credited to a "Series
1978A Interest and Redemption Fund" which is hereby created and
shall be established in the City' s Official Depository, for the
purpose of paying the interest as it accrues and to provide a
sinking fund for the purpose of paying each installment of
principal as it becomes due; that for each year hereafter while
any of said bonds , or interest thereon, are outstanding and unpaid,
there shall be computed and ascertained, at the time other taxes
are levied, the rate of tax based on the latest approved rolls of
said City as will be requisite and sufficient to make, raise and
produce in each of said years a fund to pay the interest on said
bonds and to provide a sinking fund sufficient to pay the principal
as it matures, or at least 2% of the principal as a sinking fund,
whichever is greater, full allowances being made for delinquencies
and costs of collection; that a tax at the rate as hereinabove
determined is hereby ordered to be levied and is hereby levied
against all of the taxable property in said City for each year while
any of said bonds, or interest coupons , are outstanding and unpaid;
that the said tax each year shall be assessed and collected and
placed in the Interest and Redemption Fund. Said ad valorem taxes
necessary to pay the interest on and principal of said bonds, as
such interest comes due, and such principal matures, are hereby
pledged irrevocably for such purpose, within the limit prescribed
by law; and the City Treasurer shall honor checks, drafts or
warrants against said fund for the purpose of paying the interest
maturing and principal of said bonds and for no other purpose.
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SECTION 9.
That the proper proportionate part of the Interest
and Redemption Fund originally established for the obligations
being refunded, together with the proper proportionate part of
all taxes heretofore levied and now in the process of collection
for the benefit of said obligations being refunded, are hereby
appropriated, and shall be transferred immediately to the
Series 1978A Interest and Redemption Fund created herein.
SECTION 10.
That for the interest scheduled to come due on the
Bonds herein authorized on March 1, 1979, there is hereby
appropriated from City funds lawfully available for such purpose
a sufficient amount of money to pay said interest.
SECTION 11.
That the Bonds herein authorized shall be presented
to the Attorney General of the State of Texas for examination
and approval and to the Comptroller of Public Accounts for
registration. Upon registration of said Bonds , the Comptroller
of Public Accounts (or a deputy designated in writing to act for
the Comptroller) shall manually sign the Comptroller' s certificate
of registration prescribed herein to be printed on the back of
each Bond, and the seal of the Comptroller shall be impressed, or
imprinted, or lithographed on each of said Bonds.
SECTION 12.
That the Comptroller of Public Accounts of the State of
Texas is hereby authorized and directed to deliver said Bonds to
the holder of the obligations being refunded thereby, in exchange ' '
for, and upon surrender and cancellation of, the bonds specified
in the third "WHEREAS " of the preamble of this Ordinance, in the
aggregate principal amount of $500, 000.00 provided that all current
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and unmatured interest coupons are attached to each of said
obligations surrendered for exchange. Said exchange shall be
made in one delivery.
SECTION 13.
That in addition to all other rights, the holders of
this series of Bonds shall be subrogated to all pertinent and
necessary rights of the holders of the obligations being refunded.
SECTION 14.
That all ordinances and resolutions or parts thereof in
conflict herewith are hereby repealed.
SECTION 15.
That this ordinance shall take effect and be in full
force and effect from and after the date of its passage, and it
is so ordained.
SECTION 16 .
That it is 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 issuance
of the proposed bonds is needed in order to refund certain
outstanding bonds of said City, and it is required that it be
done immediately; 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 Annotated Civil Statutes
Article 6252-17.
ATTEST: Mayor of the City of Fort Worth
Texas
City Secretary of the City of
Fort Worth, Texas
AP OVED S FO^ AND LEGALITY:
t � .
ity Atto eythe City of Fort
Worth, Texas
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That the form of coupons to be attached to said bonds
shall be substantially as follows :
NO. $
ON 19 ,
THE CITY OF FORT WORTH, TARRANT COUNTY, TEXAS
promises to pay to bearer the amount shown on this interest coupon,
in lawful money of the United States of America, without exchange
or collection charges to the bearer, upon presentation and surrender
of this interest coupon, at the Manufacturers Hanover Trust Company,
in the Borough of Manhattan, City and State of New York, said amount
being interest coming due that day on the bond, bearing the number
hereinafter designated, of that issue of CITY OF FORT WORTH REFUNDING
BONDS, SERIES 1978A, DATED September 1, 1978. Bond No.
City Secretary Mayor
That substantially the following certificate shall be
printed on the back of each bond:
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
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MATSON City
Cit 1of Fort Worth
o t 9 Gx
s
HERCHERT
BAILIFF Mayor and Council Communication
SMITH
IVORY DATE REFERENCE suB.IECT: Refunding Bonds PAGE
NUMBER
soewso
9/26/78 G-3945 1o 2
On March 1, 1976, the City issued General Obligation General Purpose Bonds and
Sanitary Sewer System and Sewage Disposal Plant Bonds with various maturities
and interest coupons. The owner (The Fort Worth National Bank) of certain of
these bonds has offered to work with the City in refunding these bonds to reduce
the principal amount outstanding and reduce interest costs.
The owner has $60,000 of the General Purpose Bonds and $440,000 of the Sanitary
Sewer System and Sewage Disposal Bonds, all maturing March 1 , 1999, and having a
4-1/4% interest coupon, as shown in the following schedule:
Debt Service on $500,000 - 4-1/4% Bonds Due 3-1-99
Principal Interest Total
1979 $ 0 $ 21,250.00 $ 21,250000
1980 0 21,250°00 21,250000
1981 0 21,250.00 21,250000
1982 0 219250000 21,250000
1983 0 21,250000 21,250.00
1984 0 21,250000 21 ,250°00
1985 0 21,250000 21 ,250000
1986 0 21,250000 21,250.00
1987 0 21,250000 21,250°00
1988 0 21,250.00 21 ,250000
1989 0 21,250000 21,250000
1990 0 21,250000 21 ,250000
1991 0 21 ,250.00 21,250000
1992 0 21,250.00 21,250°00
1993 0 21,250000 21,250000
1994 0 21,250.00 21,250000
1995 0 21,250000 21,250.00
1996 0 21,250°00 21,250.00
1997 0 21,250°00 21,250.00
1998 0 21 ,250000 21 ,250.00
1999 500,000.00 10,625.00 510,625.00
$500,000.00 $435 ,625°00 $935 ,625.00
The owner will exchange these outstanding bonds for a new series of bonds in the
face amount of $415,000 with 4-3/4% coupons, maturing annually through 1986, as
shown in the following schedule:
DATE REFS ERCE SUBJECT: Refunding Bonds PAGE
NUM
9/26/78 G-3945 2 a( 2
Debt Service on Proposed $415,000 Bonds @ 4-3j4%
Dated 9-1-78
Principal interest Total
March 1, 1979 $ 65,000.00 $ 18,168075 $ 83,168075
March 1, 1980 50,000.00 15,437050 65,437050
March 1, 1981 50,000000 13,062050 63 ,062050
March 1, 1982 50,000.00 10,687050 60,687050
March 1, 1983 50,000.00 3,312050 58,312050
March 1, 1984 50,000.00 5,937050 55,937050
March 1, 1985 509000.00 .3,562050 53 ,562050
March 1, 1986 50,000.00 l,187050 51 ,187050
$415,000.00 $ 76,356025 $491,356025
The effect to the City will be a reduction in principal of $85,000 and a
reduction in interest costs of $359,2680750
All expenses related to the refunding will be paid by The Fort Worth National
Bank, including obtaining the Purchasers Opinion from McCall , Parkhurst, and
Horton, Attorneys.
Recommendations
It is recommended that:
1a The City Council approve the negotiated refunding in the amount of
$415,000; and
20 The City Council adopt the attached ordinance authorizing the issuance
of $415,000 of refunding bonds.
MCM:ia
Attachment
SUBMITTED BY: DISPOSITIOp( BY COUNCIL: PROCES
SE
APPROVED ❑ OTHER (DESCRIBE)
7 1q7
( •�� ` Clj SECRETARY
�•1 DATE
CITY MANAGER / - �(-7�