HomeMy WebLinkAboutOrdinance 4051 ORDINANCE NO.
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF REVENUE BONDS OF
THE CITY OF FORT WORTH IN THE AGGREGATE PRINCIPAL AMOUNT OF
ONE MILLION, EIGHT HUNDRED AND FIFTY THOUSAND DOLLARS ($1,-
850,000.00), IN ADDITION TO TWO INSTALLMENTS OF REVENUE BONDS
AGGREGATING SEVEN MILLION, TWO HUNDRED AND FIFTY THOUSAND
DOLLARS (7,250,000.00) HERETOFORE ISSUED AND SOLD OUT OF AN
AUTHORIZED ISSUE OF EIGHTEEN MILLION DOLLARS ($18,000,000.00),
AND IN ADDITION TO FIVE INSTALLMENTS OF REVENUE BONDS AGGRE-
GATING FOURTEEN MILLION, TWO HUNDRED AND FIFTY THOUSAND DOL-
LARS ($1+,250,000.00) HERETOFORE ISSUED AND SOLD OUT OF AN
AUTHORIZED ISSUE OF FIFTEEN MILLION DOLLARS ($15,000,000.00)
AND EIGHTEEN MILLION DOLLARS ($18,000,000.00) OF REVENUE BONDS
PREVIOUSLY AUTHORIZED AND ISSUED, TO FINANCE THE IMPROVEMENT
AND EXTENSION OF THE CITY'S WATER AND SEWER SYSTEMS; PROVIDING
FOR THE PAYMENT OF SUCH BONDS SOLELY FROM THE REVEbUES OF SUCH
SYSTEMS; PLEDGING A PORTION OF SUCH REVENUES TO SUCH PAYMENT;
ENTERING INTO CERTAIN COVENANTS AND AGREEMENTS WITH RESPECT TO
THE OPERATION OF SUCH SYSTEMS AND THE APPLICATION OF THE REVE-
NUES DERIVED THE1=ROM; AND REPEALING ALL ORDINANCES IN CONFLICT
HEREWITH.
`vEEREAS, the City of Fort Worth (hereinafter referred to as City)
has established, and for many years has maintained and operated, and is now
maintaining and operating a system (hereinafter referred to as the City Water
System) used or useful to obtain a supply of water for said City and its in-
habitants and to conserve, treat and dispose of such water, and also a system
(hereinafter referred to as the City Sewer System) used or useful for the
collection, treatment and disposal of sewage and waste; and,
WHEREAS, at an election duly called and held in the City on January
25, 1949, a majority of the qualified voters of the City voted in favor of
each of the following propositions:
PROPOSITION NO. 1
Shall the City of Fort Worth, Texas, through its City Coun-
cil, issue its negotiable coupon bonds in the principal sum of
Twelve Million, Four Hundred Thousand Dollars ($12,400,000.00)
for the purpose of improving, extending and enlarging the -Water-
works System of said City, said bonds to be issued at one time
or in installments from time to time as the City Council shall
determine, the bonds of each installment being payable serially
as may be determined by the City Council, so that the last ma-
turing bonds shall become payable within forty (40) years from
the date .thereof, and bearing interest at a rate not to exceed
four per cent (4%) per annum from the date thereof, payable semi-
annually, and to provide for the payment of principal and inter-
est on said bonds by pledging the net revenues from the opera-
tion of the Waterworks System of said City, or in the event that
the City Council be authorized to issue Sewer System revenue
bonds as submitted in Proposition No. 2, to be secured addi-
tionally by a pledge of the net revenues from the operation of
said Sewer System?
PROPOSITION NO® 2
Shall the City of Fort Worth, Texas, through its City Coun-
c Tl, issue its negotiable coupon bonds in the principal sum of
Five Million, Six Hundred Thousand Dollars ($51,600,000.00) for
the -Pur-Pose of improving, extending and enlarging the existing
Sewer System of said City, said bonds to be issued at one time
or in installments from time to time as the City Council shall
aeteri'al-ne, the bonds of each installment being payable serially
as may be determined by the City Cc-Luncil, so that the last ma-
turing bonds shall become payable within forty (40) years from
the date thereof, and bearing interest at a rate not to exceed
four per cant (4�) per annum from the date thereof, payable semi-
annually, and to provide for the payment of principal and inter-
est on said bonds by pledging the net revenues from the operation
of the Sewer System of said City, or in the event that the City
Council be a:athorized to issue aiaterworks System revenue bonds
as submitted in Proposition No® 1, to be secured additionally
by a pledge of the net revenues from the operation of said Water-
works System?;
and.
v=EAS, the ordinance calling said election provided that if both
propositions were duly approved at said election, the City Council could,
at its option, combine the T�,7elve Million, Four Hundred Thousand Dollars
($12,400,000.o0) Waterworks System Revenue Bonds and the Five Mill-Lon, Six
Hundred Thousand Dollars (.'`0'5,000,000.00) Sewer system Revenue Bonds into
one issue and pledge the Net Revenues from the operation of both the Water-
v7orks System and the Sewer System to the payment of the principal of and
X
the interest on said entire issue of bonds; and,
T
oFEE21 a majority of the resident; qualified electors of the City
o,,Tning taxable property in the City, and -vf.lo had d.,-f-,y rendered same for
ta_sation, voting at an election held- for that purpose on January 26, 1954s
voted in favor of each of the two following propositions:
PROPOSITION NO. 1
Shall the City of Fort Worth, Texas, through its City Coun-
cil, issue its negotiable coupon bonds in the principal sum
of Ten Million Dollars in addition to bonds
of the aggregate principaj- amount of Twelve Million, Four Hun-
dred Thousand Dollars ($12,4o0,000.00) heretofore issued by
the City pursuant to a proposition adopted by a iTajcrit-y vote
of the quialified. electors of the City at a special election
held- on January 27, 1-949, for the vulriDose of improving, ex-
tending and enlarging the Wrateri,,,orks System of said City,
said 'bonds to be issued at one time or in installments from
time to time as the City Coliancil shall determine, the bonds
of each installment being payable serially as may be determined
by the City Council, so that the last maturing bonds shall be-
come payable within forty (40) years from the date thereof, and
bearing interest at a rate not to exceed .our and one-half per
cent (4-1 210) per annum from the date thereof, payable semi-
annually, and to provide for the payment of principal and inter-
est on said bonds by pledging the net revenues from the operation
of the WateinTorhs System. of said City, or in the event that the
City Council be au.-thorized to issue Sewer System revenue bonds as
submitted in Proposition No. 2, to be secured additionally by a
pledge of the net revenues from the operation of said Sewer System?
PROPOSITIOINT NO. 2
Shall the City of FortTIorh
I t� , �TI
exas, through its City Council,
issue its negotiable *coupon bonds in the principal sum of Five
Million Dollars ($5,000,000.00"��' in addition to bonds of he
aggregate principal amount of Five Million, Six Hundred Thousand
Dollars ($5,600,000.00) heretofore issued by the City pursuant to
a -proposition adopted by a majority vote of the e qualified electors
'i f
of the Cityat a special election held on January 25,
1� 1949, for
the purpose of im:Iproving, extending and enlarging the existing
Sewer System of said City, said bonds to be issued atone time or
in installments from time to time as the City Council shall a e-
termine, the bonds of each installment being payable serially as
may be determined by the City Council, so that the last maturing
bonds shall become payable within forty (1,L0) years from the date
thereof, and bearing interest at a rate not to exceed four and one-
hal per cent (4 1/2,4�) per a-=Lun from the date thereof, payable
If __L
semi-annually, and to provide for the -payment of principal and
interest on said bonds b-y pledging the net revenues from the opera-
tion of the Sewer System of said City, or in trio event that the
City Council be authorized to issue System revenue bonds
as submitted in Proposition No. 1 , to be secured additionally by
a pledge of the net revenues from the operation of said Waterworks
System?;
and,
1.,THEHREAS, the ordinance calling said election provided that if both
propositions were duly approved at said election, the City Cc-LuIcil cou
ldl
at t its option, combine the Ten Million Dollars ($10,000,000400) T'Tatez-,Torks
System. Revenue Bonds and the Five Million Dollars ($.,,,000,000.00) Sewer Sys-
tem Revenue Bonds into one issue and pledge the lNet, Revenues from the opera-
tion of both the Waterworks System and the Sewer System to the payment of
the principal of and the interest on said entire issue of bonds; and,
TNEE-Ra-IS, a majority of the resident, qualified electors of the City
owning taxable property in the City, and who had duly rendered same for taxa-
tion, vot-ing at an election held for that y at purpose on Januar31
C;' 1956, voted
in favor of each of the two following propositions:
PROPOSITION NO. 1
Shall 'the City of Fort Worth, Texas, through its City Coun-
cil, issue its negotiable coupon bonds in the principal s-mr. of
Sever-teen Million Dollars 017,000,000.00), in addition to bonds
of the aggregate principal amount of T�Tenty--L;wo Million, Four
Hundred Thousand Dollars ($22,400'000.00) heretofore authorized
by the City pursuant to propositions adopted by a majority vote
Ij
of the qualified electors of the City at special elections held
on January 25, !949, and January 26, 1954, respectively, for the
purpose of improving and extending the Waterworks System of said
City, said bonds to be issued at one time or in installments from
time to time as the City Council shall determine, the bonds of
each installment being payable serially as may be determined by
the City Council, so that the last maturing bonds shall become
payable within forty (40) years from the date thereof, and bearing
interest at a rate not to exceed four and one-half per cent
(4-1/2f) per annum. from the date thereof, payable semi-annually,
and to provide for the payment of principal and interest on said
bonds by pledging the net revenues from the operation of the
Waterworks System of said City, or in the event that the City
Council be authorized to issue Sewer System revenue bonds as sub-
mitted in Proposition No. 2; to be secured additionally by a pledge
of the net revenues from the operation of said Sewer System?
PROPOSITION NO. 2
Shall the City of Fort Worth, Texas, through its City Coun-
cil, issue its negotiable coupon bonds in the principal sum of
One Nillion Dollars Q1,000,000.00), in addition to bonds of the
aggregate principal amount of Ten Hillion, Six Hundred Thousand
Dollars 010,600,00mo) heretofore authorized by the City pur-
suant to propositions adopted by a majority vote of the qualified
electors of the City at special elections held on January 25, 1949,
and January 26, 1954, respectively, for the purpose of improving
and extending the existing Sewer E7stem of said City, said bonds to
be issued at one time or in installments from tine to time as the
City Council shall determine, the bonds of each installrent, being
payable serially, as may be determined by the City Council, so that
the last maturing bonds shall become payable within forty (4o) years
from the date thereof., and bearing interest at a rate not to exceed
four and one-half per cent (4-1/2if) per annum from the date thereof,
payable semi-ennually, and to provide for the payment of principal
and interest on said bonds by pledging the net revenues from the
operation of the Sewer System of said City, or in the event that
the City Council be authorized to issue Waterworks System revenue
bonds as submitted in Proposition No. 1, to be secured additionally
by a pledge of the net revenues from the operation of said Water-
works System?;
arid,
WHEREAS, the ordinance calling said election provided that if both
propositions were duly approved at said election', the City Council could,
at its option, combine the Seventeen Million Dollars 017,000,000.004) Water-
works System Revenue Bonds and the One hfilion Dollars Sewer
System Revenue Bonds into one issue and pledge the Net Revenues from the
operation of both the Waterworks System and the Sewer System to the payment
of the principal of and the interest on said entire issue of bonds; and,
WHEREAS, the City has heretofore issued all of the bonds authorized
by the two propositions submitted at said election held on January 25, !949,
and said bonds were issued pursuant to (1) an ordinance adopted on April 20;
194% Lich is herein referred to as "First Issue Bond Ordinance and (2)
an ordinance adopted on September 14, 1949, and (3) an ordinance adopted
on February 28, 1951, as amended by an ordinance adopted on March 7, 1951;
and (4) an ordinance adopted on February 27, 1952, and (5) an ordinance
adopted on February 18, 1953; and,
,v-
11EREAS, the City has heretofore issued bonds of the aggregate prin-
cipal amount of Fourteen Million, !we Hundred and Fifty Thousand Dollars
($14,250,000.00) authorized by the two propositions submitted at said elec-
tion held on January 26, 1954, and said bonds were issued pursuant to (1)
an ordinance adopted on ,March 10, 1954, and (2) an ordinance adopted on
February 23, 1955, and (3) an ordinance adopted on February 29, 1956, and
(4) an ordinance adopted on February 27, 1957, and (5) an ordinance adopted
on February 28, 1958, and the bonds so issued comprise all of the Ten Million
Dollars ($10,000,000.00) of bonds referred to in Proposition No. 1 and Four
Million, Two Hundred and Fifty Thousand Dollars ($4,250,000.00) of the bonds
referred to in Proposition No. 2 submitted at said election, and the remainder
of the bonds referred to in said Proposition are proposed to be issued pur-
suant to an ordinance to be adopted on February Q 1959; and,
WEERZAS, the City has heretofore issued bonds of the aggregate prin-
cipal amount of Seven Million, Tvn Hundred and Fifty Thousand Dollars ( -'$T
250,000.00) authorized by Proposition No. 1 submitted at said election on
07anuary 31, 1956, and said bonds were issued pursuant to (1) an ordinance
adopted on February 27, 1957; and (2) an ordinance adopted on February 28,
1958, and the remainder of the bonds referred to in Proposition No. 1 have
not as yet been issued and none of the bonds referred to in Proposition No,
2 have as yet been issued; and,
WHERE!E, it was provided in all of said ordinances authorizing the
issuance of said bonds pursuant to the authority granted by a majority of
the resident, qValified electors of the City owning taxable property in the
City, and who had duly rendered same for taxation, voting at said elections
held for that purpose on January 25, 1949, January 26, 1954, and January 31,
1956, that the City of Fort Worth might issue additional bonds payable from
the Debt Service Fund created by the First Issue Bond Ordinance and secured,
equally and ratably with the bonds authorized by said ordinances, by a pledge
of the Revenues of the Systems in the event the City shall have been au-
thorized by law to issue them and conditioned
(a) That -the additional bonds shall be issued for the
purpose of improving, extending or enlarging the Systems,
(b) That at the time the additional bonds are issued,
the City shall not be in default in making any payment re-
quired by Section 404, 405 or 405 of each of said ordinances;
(c) That the amount of the average annual Net Revenues
of the Systems computed by dividing by two the Net Revenues
for the two fiscal years irmnediately preceding the time of is-
suance of the additional bonds shall be not less than 150 of
the maximum aggregate amount of principal and interest payable
in any future fiscal year with respect to the bonds and addi-
tional bonds then outstanding (including issued bonds as here-
inafter defined) and the additional bonds about to be issued; and
(d) That the principal of the additional bonds shall be
made payable on March lst of the years in which such principal
is payable, and that the interest on the additional bonds shall
be made payable semi-annually on September lst and March lst;
and,
1r=REAS, the City Council has found and determined that (1) the
Water and Sewer Revenue Bonds authorized by this ordinance shall be for
the purpose of improving or extending such City eater and Sewer Systems;
and (2) the City is not now and has not been in default in the making of any
payment required by any of said ordinances, -.and (3) the amount of the average
annual Net Revenues of the City Water System and the City Sewer System com-
puted by dividing by two the Net Revenues for the two fiscal years immediate-
ly preceding the time of issuance of the additional bonds now proposed to
be issued is far in excess of 150%o of the maximum aggregate amount of prin-
cipal and interest payable in any future fiscal year with respect to the
bonds now outstanding and the additional bonds now proposed to be issued,
and (4) the principal of the additional bonds authorized by this .ordinance
shall be made payable on March lst of the years in which such principal is
payable, and the interest on such additional bonds shall be made payable
semi-annually on September ist and March ist of each year, respectively;
and,
WHEREAS, it is deemed vise and ex.pedient by the City Council of said
City, in the exercise of the discretion reposed in it by law, that One Mil-
lion, Eight Hundred and Fifty Thousand Dollars ($1,850,000.00) of said bonds
authorized by Proposition No. 1 and Proposition No. 2 submitted at said elec-
tion held on January 31, 1956; be issued, in addition to said bonds hereto-
fore issued and sold, for the purpose of iqproving and extending the City's
Water and Sewer Systems, and that said bonds shall be issued as provided by
this ordinance; and;
,,,EEREAS, the following terms, where used in this ordinance, unless
the context shall indicate another or different meaning or intention, are
to be construed and used and are intended to have meanings as follows:
(1) "City Water System" and "CitySever System" mean
the systems described in the first paragraph of this ordi-
nance,
(2) "Bonds" shall mean the bonds described in Section 101
of this ordinance.
i N "Additional Additional Bonds" shall mean the bonds hereafter is-
sued as provided in Section 109 of this ordinance.
(4) "Issued Bonds" shall mean the Issued Bonds described
in section 401 of this ordinance.
(5) "Operating E:,cpensesl� shall mean Operating Expenses as
defined in Section 401 of this ordinance.
(6) "Revenues" and "Net Revenues" shall mean, respectively,
Revenues and Net Revenues as defined in Section 401 of this
ordinance.
(7) "First issue Bond Ordinance" shall mean the ordinance
hereinbefore described, adopted by the City Council on April
20, 1949.
(8) "Operating Fund" shall mean the fund described in Sec-
tion 402 of this ordinance.
(9) "Debt Service Fund" and "Current Account" and "Reserve
Account" shall mean the Debt Service Fund, the Current Account
and the Reserve Account described in Section 405 of this ordi-
nance.
(10) "Operation Reserve Account" shall mean the Operation
Reserve-Account described in Section 406 of this ordinance.
(11) "Issuance Date" shall mean the first day on which any
of the Bonds are delivered,
"Year"
t1 PI
�12� �.�..ar or Fiscal. year shall mean the ;yearly period
beginni ig Gctd1ber.1 i n each year.
NOW,
Bu T f47 JRDAI.TM_,D By THE CITY COLl?CIL OF � CITY OF FORT BET
ARTICLE I.
'I011 AND D SCRIPT11-01"T OF BONDS
Section 101. Bonds of the City, being a part of the bonds referred
to in Proposition No. I S',_fbmitted at said election held on January 31, 1956,
set forth in the preamble of this ordinance, shall be issued at this time
in the aggregate principal amount of One Million, Six Hund-red Thousand
lars Q1,600;000.00) for the purpose of improving and extending the City
Water System, and bonds of the City, being a part of the bonds 2eferred to
in Proposition No. 2 submitted at said election held on January 31, 1956,
set forth in the preamble of this ordinance, shall be issued at this time in
the aggregate principal amount of Two Hundred and Fifty Thousand Dollars
($250,000.00) for the purpose of improving and extending the City Sewer Sys-
tem. All of such bonds (hereinafter referred to as the Bonds) shall consti-
tute a single issue to be 1,uno?,i11 as Jater and Sewer Revenue Bonds, Series 90.
The Bonds shall be payable solely from the Net Revenues of the City's Water
and Sewer Systems, as defined in Section 401 of this ordinance. The credit
O% the City shall not be pledged for the payment of the Bonds. The holder
or holders of the Bonds shall never have the right to demand pa,--f.,lent thereof
out of any funds raised or to be raised by taxation.
Section 102. The Bonds are hereby authorized and shall be issued pur-
suant to the Constitution and statutes of the State of Texas, including par-
ticularly Articles Ull to 1118, inclusive, of the 1925 Revised Civ ilStatutes
OI Te., m
.as, as amended.
Section 103. The Bonds shall be eighteen hundred and fifty (1,8)0)
in number, numbered from seven thousand, two hundred and fifty-one (7,251)
to nine thousand, one hundred (9,100), inclusive, and of the denomination of
One Thousand Dollars Q!
UP 1000-00) each, shall be dated March 1. 1959, and
shall mature serially in numerical order on March 1St of each year, as follows:
Year Amount Bond Numbers
l96o $10�000.00 V251 to 7,26o
iq6i 30,000.00 7,26i to 7,290
2-962 50,000-00 7,291 to 7,34o
1963 70,000-00 7,341 to 7;4l0
1964 70,000-00 Tki to 7,48o
1965 80;000.00 T481 to 7,56o
1966 80;000.00 7,561 to TWO
(CONTINUED)
Year Amount Bond Numbers
1967 $80,000.00 7,641 to 7,720
1968 80,000.00 7,721 to 7,800
1969 80,000.00 7,801 to 7,880
1970 80,000.00 7,881 to 7,960
1971 80,000.00 7;961 to 8,040
1972 80,000.00 8,01 to 8,120
1973 80,000.00 8,121 to 8,200
1974 80,000.00 8,201 to 8,280
1975 80,000.00 8,281 to 8,360
1976 80,000.00 8,361 to 8,440
1977 80,000.00 8,441 to 8,520
1978 80,000.00 8,521 to 8,600
1979 80,000.00 8.601 to 8,680
1980 80,000.00 8,681 to 8,760
1981 80,000.00 8,761 to 8,840
1982 80,000.00 8;84i to 8,920
1983 90,000.00 8;921 to 9,010
1984 90,000.00 9,011 to 9,100
The interest on each Bond shall be payable semi-annually on September lst
and March lst of each year until the City's obligation with respect to the
payment of the principal sum thereof shall be discharged. The Bonds shall
be payable, with respect to both principal and interest, at the principal
office of The Hanover Bank, in the Borough of Manhattan, City and State of
New York, in such coin or currency of the United States of America as at
the time of payment shall be legal tender for the payment of public and pri-
vate debts. The Bonds which mature subsequent to March 1, 1970, shall be
redeemable prior to their respective maturities, as provided in Article IT
of this ordinance.
Section 104. The Bonds numbered from seven thousand, two hundred and
fifty-one (7,251) to seven thousand, four hundred and eighty (7,480), inclusive,
shall bear interest at the rate of four and one-half per centum (4-1/25) per
annum; the Bonds numbered from seven thousand, four hundred and eighty-one
(7,481) to seven thousand, six hundred and forty (7,640), inclusive, shall
bear interest at the rate of three per centum. 0%) per annum; the Bonds num-
bered from seven thousand, six hundred and forty-one (7,641) to eight thousand,
three hundred and sixty (8,360), inclusive, shall bear interest at the rate of
three and one-quarter per centum (3-1/4%) per annum; and the Bonds numbered
from eight thousand, three hundred and sixty-one (8,361) to nine thousand, one
hundred (9,100), inclusive, shall bear interest at the rate of three and forty-
hundredths per centum (3.40%) per annum.
LO
Section 3 5. The Bonds shal 1 be payable to bearer, without privilege
of registration. Each of the Bonds shall be signed by the facsimile signa-
ture of the Idayor, approved as to form and legality by the facsimile signa-
ture of the City Attorney and attested manually by the City Secretary, and
the corporate seal of the City of Fort Worth, Texas, shall be affixed to
or impressed upon each of them. The facsimile signatures of the Mayor and
City Secretary shall be lithographed or -printed. upon the coupons attached
to said. Bonds, and such facsimile signatures shall have the same effect as
if manually placed on said. Bonds and coupons. Each successive holder of
each Bona, and each successive holaer of each of the coupons attached to
the Bonds, is conclusively presumed to forego and renounce his equities in
Favor of subsequent holders for value without notice, and to agree that such
Bona and each of such coupons may be negotiated by delivery by any person
having possession thereof, howsoever such possession may have been acquired,
and that any holaer who shall have taken such Bona- or any of such coupons
from any person for value and without notice 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.
Section 106. The Bonds, the interest coupons to be attached to the
Bonds, and the certificate of the Comptroller of Public Accounts of the
State of Texas, and the certificate of the City Attorney to be endorsed on
the Bonds shall be in substantially the following forms, respectively,, with
the proper insertions, substitutions and variations as in this ordinance
provided or permit-1-lea:
section 107- After the Bonds have been executed by the Layer and
City Secretary in accordance with their terms, they shall be presented to
the Attorney General of the State of Te:,as for examination and approval.
After the Bonds have been approved by the Attorney General, they shall be
registered by the Comptroller of Public Accojo,,,t,,s of -,-,he State of Texas in
the manner provided by law. The Bonds shall not be issued until they have
been so approved and so registered.
Section 108. The 1,1aycr and City Secretary are hereby authorized to
execute said Bonds and to impress thereon the corporate sea, of the Cit>
The City Treasurer is hereby authorized to deliver. said Bonds to the pur-
chaser or purchasers to w7ia to they may be sold by the City Council upon re-
ceipt of the purchase price to be paid by such purchaser or purchasers,
Section 109. in addition to the Bonds authorized by this ordinance,
the City may issue bonds (hereinafter referred to as Additional Bonds) pay-
able from the Debt Service Fund hereinafter referred to and secured, equally
and ratably with the Bonds authorized by this ordinance, by a pledge of the
Revenues of the Systems, but only upon the following conditions:
(a) That the Additional Bonds shall be issued for the purpose
of improving or extending the Systems;
(b) That at the time the Additional Bonds are issued, the City
shall not be in default in mahinany Ijayne-at -required by section 404, 4q--
or 406 of this ordinance;
(c) Toat the amount of the average annual Het Revenues of the
Systems Computed by dividing by two the Net for the two fiscal
years immediately preceding the time of issuance of the Additional Bonds
shall be not less than 15DO of the maximum aggregate amount of principal ana
interest payable in any future fiscal year with respect to the Bonds and.
Additional Bonds when outstandinE (including issued Bonds as hereinafter de-
fined) and the Additional Bonds about to be issued; and
(d) That the principal of the Additional BvTlds shall be made pay-
able on larch 1 of the years in which such principal is payable, and that
the interest on the Additional 3onds shall be made payable semi-annually on
September 1 and March 1.
ALL Bonds issued in acccrLance with the provisions of this Section
10 j 2aw..d pursuant o the propositions set forth.th _n the preamble of this
ordinance, as well G3„s all of .i.C,.,.,,1.. issued pursuant to propositions resident,
. hereto-
fore
G �: •G^
tmo�. o hereafter adoptedd ?y a majo_ ?v� o the . . s_ de �, y 'µ�?sied electors
of the Cit o:'v,_,a:_. t, taxable property n the City, and bdiii;.+ have dV.,;.ly readers,
the same for taxation, V`o.._ng >.`,Ltt an election i.le.... for that st pu r^pose, vhi e u„°,M:
issued by virtue+'1 e of this ordinance L.'.e r 'F,ev virtue. of' eas-]. uC}',�+.e�nt
��"^ r wizbse�'�.
ordinances or resolutions, and whether Issued C'w(a vni .,..me or fr+'}!it time to
v.'...lT!:e ;ahG..1,.l be deemed .a,:t1d treated as a single.....'e isSi.`se of bonds and as repre-
senting
of the 1925 Revised sed S:.c<<t''`:.' mss'. of Texas, s amended.
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represented by t.:.{,'E:'j-.o _s c'','3 au1a_..l ha-,/-c,, matured on -.,:tr "prior to the ...ti.d`vmp-
'R
t_�.oa:. date shall continue .,,o be payable to the lea. u .; C2 si;,.c:.s coupons. in-
terest
_ne Ees L on any aonds to be redeemed >acl7 cease to accrue Crm ,:d after >
le
,:_t..d�e.. ption date specified in S,.7ch notice unless the u...ty defaults .,n the
payment of the redemption price thereof.
it?E'.c..ion 204. „'.-t,l Bonds redeemed prior to maturity under the provi-
sions `anima: this ordinance, zc;Ur"tA..e with the Gi..M1„red ,...iLzi�a'(`Jns, if any, :.l..u',!--,-
cer-
tificate i.at showing t.x G destruction of a4<.ch B'i'7nds or coupons shall l r e filed in
the office of she City Treasurer.
�K
ARTICLE III.
APPLICATION OF PROCEEDS OF BONDS
Section 301. All moneys received by the City in payment for the
Bonds, exclusive of accrued interest, shall be credited to a special fund,
which is hereby created and which shall be known as the "Water and Sewer
System Construction Fund" (hereinafter referred to as the Construction
Fund). A11 moneys credited to the Construction Fund shall be deposited
with the City's depositary or depositaries and shall be subject to a lien
and charge in favor of the holders of the Bonds, and shall be held for the
further security of such holders until paid out as hereinafter provided.
Section 302. -From the moneys credited to the Construction Fund-the
City shall apply the sum of $11600,000.00 to the payment of the cost of im-
proving and extending the City Water System and the sum of $250,000.00 to
the payment of the cost of improving and extending the City Sewer System.
Section 303. The amount received by the City from the purchasers
of the Bonds as accrued interest, if any, shall be paid by the City into
the Current Account of the Debt Service Fund hereinafter described.
of the City, and shall be held by such ban ior banks in a :le. �a_ .�et r
account to be IaacTra a4 the c.uu and ?ewer Operating Fund"
referred to as the Operating c ing ✓{und) established shed 1' the First issue Bond
Section ion 403. S1.i.b''., c w only
W to the right g it• o f the City to pay from
the Operating Fumd moneys required. for Operating E:-.penses as provided in
Section 404 of this ordinance and (2) .o the right of the City to expend
moneys in. the Operating Fund n accordance yce t _ ?: Section 406 '7f this ordinance,
u,.-.-. Tio.C?...us y,a.:aCL or .,y,.0u1,rt'Cb by x:....,C,_+.J_.. , .rte to be 3c:td 1.iCto v:1U Operating
Fund are hereby pledged to secure the payment of the principal of, the re-
demption
_,C . ,1 .o premium, if any, and interest'est on she Bonds (including?ng -.ss-'.',.e Bonds
and Additional Bondsissued n accordance with Section 09 of this O1d"!r`nce),
and this pl edge shall be valid d `nd binding from and after she earliest date
(hereinafter referred o as `.ahe issuance Date) upon which any Bonds are
is-
suedpursuant to this ordinance. Revenues, ;:a,`-, received by she City, shall
immediately be subject _r' ? lien of this pledge without any physical de
de-
livery u� thereof or _...rt1'?.el act, and the lien of this a_''_G'Qi.ve shall be valid
e
and binding asagainst '' parties >at?`ing claims 4 C: any kind in tort, or con-
tract,
: li:'-
t;Y'wC w, o. otherwise against the City, irrespective espC-'ct,..ve of w-hether such parties
have notice of such lien.
Section 404. From the Operating k',.a.nG'>.. the City shall first
pay operat-
ing Expenses 2s such e:,,pa. rev recce due and payable.
Section 405. w d Special Fund niO ,?r as the rea4e1" and Sewer Debt
Service Fund" (hereinafter referred to as "Debt Service Fund") established
by the First
3.r t i.a +.e Bond Ordinance shall be continued and maintained, n
such Special Fund shall !2e divided into ,.a t f'u_rc..,.ttC'C.{.1l^_t" and Fes. "Reserve
Account" ca s provided in the First st m,s e Bond Ordinance. All moneys paid
into such accounts as hereinafter Provided and a provided in ,:he First is-
sue acid Ordinance shall I be deposited in one or more depositaries of the
City as a Special Fundc:•.nd. shall be kept separate s'r"Ctnt all ^ther moneys
the e C at.'i:,yr
O. 4:. beforethe ,Ji ..::y oM- the first month end-
ing
,„Ct®'
each month thereafter, the City shall, out of the moneys remaining in the
then O r,_::_t.C�.t.._: �� �
� Fund after 1lJv,,}'_i2'�.'.>..� �l_: Operating due. and payable,_. y
(a) into the Current cc l:.n U of the Debt Service
Fund:
(11) An amount equal to ane-sinth (116) of tie in-
terest Dayable on the Bonds �Qncluding issued
Bonds and Additional Bonds) then outstanving
on the interest payment 11enLa :,a e next ensuing, ,ness
the amount, if any, received as accrued
est from the purchasers of the Bonds and deposited
to the credit of the Currant Account and available
for he purpose of paying gsaid interest; n -.
1 G) i7.n amount = ,ual to one-twelfth (1/12) othe prin-
cipal
1 i:4—
i
cpau of the Bonds (including issued Bonds n:,_ Ad-
ditional
am
_�
d t_��..a Bonds) then outstanding, ,.1at ,;,ijj mature
fes,`"� ,--,!a ;"a c.1.L firs next ensuing; and
(b) into the Reserve Account o,,. ,,;die Debt Service ice FGnd :
in amount equal to twenty Der cant
a
of said
payments into the Current Account; ma
that and for so long as the amount
in the Reserve t shall be as much as the ag-
E ga i.�'..'. amount of
principal a ..d interest that will
.i_ll
become due and payable in the twelve _;%oi?Ms A -,er.;
:tis
beginning on the ..'3ku_�,.,J:?. 2 'i:mow- ensuing on the Bonds
(Including
q .m"!�c ...d _ g is�,�ewig Bonds and Additional Bonds) then
outstanding, no ,-,,�; .?.eal•.� ne ed e made intc the Re-
serve ve .__:coo.i ; and provided, _ x. te that no great-
er payment ym need be made .to the Reserve a e Clan .
than shall be necessary to make the amount in .,ESC; Re-
serve Accou
eer $eiucou w al to saidaggregate amou:.:rt; of prin-
cipal
"`43.S S.'`1. ..edU.f.;..on kc .._.�., aul;,ozat required by the ..L^rego„.,
provisions e_h this si:;.'c 1 't,on ,,o be paid into the Current Account. ^ the ,,,
3ervice Fund e1 o . before the _ ash; day of the a
Additional Bonds are delivered,
the City shall pay ...t., s<,_.t. account, .;n or
before e ...aid day, Out of moneys remaining in the Operating Fund after the hP
payment t,}',:_'' r�.''..:�Ci.. wi..� .✓,.,.._._t...wi tom;...n doe and payable, an amount req
ual to the
amounts,s if any,y a;.;..t.. .vCr''l;',l d have been theretofore raid, pursuant- i o said.
foregoing provisions, into the C'r_r».a.`.^4< respect to said Bonds
or Additional Bonds (a) on acco-,ant of interest, if said Bonds or Additional
Bonds had be;e1-, delivered ed s i i months,lhs before the interesttih payment S..u'�e� date
_
..
ensuing, �
i "_a l.��. - ?.G.. �,�.�) on account i'rw principal, if said .��.�onU.s .... Additional Bonds
.had been
deliveredone year befo_t. the "a.n4."pcMF,. pavi'Su1''t uYc. .e 'iC':i'G ;'nMi.c,.:t,,
if for n.y reason he moneys . e Current Ac
Coin 'r or ti2n.„ R ese `y <''C i i.i of the Debt Service Fund,, ,nd actually avail-
wC~ve s.C';'_ t.r ..V purpose o,j. payingtie principal of or interestthe "`C
or the i'.usu:e,.C.E 1C.?w.ds or ,,he Additional Bonds, sx.:.;+.'l at any .,r.me be less than
the total amount required by the foregoing provisions of this section o sue
paid into such account up leo'' such time, after deducting, iin' the case of the
Current Account; moneys previously c;.pp....ied to, or sot aside and held by the
City for, he paym.ent of matured ;o nds or issued Bonds or Additional Bonds
and matured coupons appurtenant u to Bonds or the issued Bonds or Additional
Bonds, the aaotl: of the deficiency shall be aided u
o ix? - �02�L otherwise
required to be paid from -ii1" Operating Fund into suchdeficient account in
each %1'4)nth thereafter until u,.-... SL''.ch deficiencies shall have been made up,
's i 1 .v`ene—\r`r and for so long as the moneys �t the Debt
Service Fund d are a,1 ._:....u.st ^.:Clu=al to ...w a oo^- U,.�.,..,.ate p.:._,_nc.a..pa_i d1,ri`Jirei.7t 1 :"a..^-
! a
Bonds and Issued Bonds and Additional .t,Vnds issued and unpaid, pus the
amount of interest then due and thereafter to become ue on he Bonds and
Issued Bonds and Additional diti ona Bonds issued and unpaid, n.o further payment revel
be made into he Desc. Service Fund.
nd.
Section 406m The special account in the Operating 'L1n ;,znov.. as 1`
"Operation Ai".se L%e Account" created t:.'.C2 b,"ya he First issue Bond Ordinance shall
be ccntinaed antirtain4..ine he City Council has ascertained 4L'1Ld hereby
determines dna t cash and inve,3ta:1,^'nts amounting ing __ the aggregate a""'7_'C-"' o ate $544,469.4-7-
have been Sail as:'LC%_e 1_n accordance with the 'tA.�}rovis off. the First Issue
.C`...a
Bond Ordinance ;:,:tnd are now i7E-',ld in said account and that said sum is li`tJre
than uu:w ,v -{_ e percentum.um. o the total amount of the Operating D:�.-D:nses o
the Systems for _ie twelve d_xon.,'__:s' period ending ng o September 30, 05 in
he event that e moneys he'tit in said account al'?al hereafter be less than
twenty-five re :ent t:: of the total amount of the Operating Expenses- � _.�u._ %1f the
v � 'w 1T
Systems 1C%� canys.`a'�< J.... i.iod"l.l: „8 pG' a..od ending on t;;`:a :n=:,..:-v p:L'ect..Uw1ng September
yj:..th; the City sho, .1, Loin, or before the last days o... De cC.m.t c:: 1.°»ia>.,:"ch, ju ne
and September in C'.'cach year, after
making the payments for Operating Expenses
required by Section 404 C`I..,..td the payments into theCurrent Ac
Cauaiand Re-
serve Account of he Debt Se in e Fund required by Section 4
0;, set aside
and pay into the Operating
Reserve Account, out on any balance S,7.G. the reve-
nues
. e',re^nes remaining in he Operating Fund, the s1" of $16,000.00, or such
larger g,"..i.
a= as m.`..,y llereaf ter be prescribed by ..,.i'e City Council, until the moneys
held in the Operating Reserve Account shall be equal to twenty-five per-
centum. of the total amzunt of the Operating :2:.panses of the Systems for the
11.^7e..ve mo_,ytn.S period ending on the next preceding September 30th, af1;:r
tr`h':.t.x_ no .mur'G''ler payment _ ee:u_ be made into such ==}.:cou,Lt, k7.n^,_t"..SS the nGne,;✓s
therein shall e1'-:i..e less than such total amount, in ihn.l.:,i7 event sucli furt.«iC:.'Pr
� a
gJ�J ..�. ..� , tuea..... from w_.A 'v__:1_., lov time_.ee ,_»:o e.:a1d account :,:;.y l:tt`t;f ..... neces-
sary
.. ..,; iJ;..r in order r to ma'—os thc-:; moneys therein equal to .,,c;.aL o-s- :.w. C'S.m.lv1,I„at .
in said account .,AA;.n.s be _.:,._ by the City for the purpose of <,.0 bwJ,...:� an,,- pay-
ments
�.y
?. wV: rCC. ieGby ti _ .h, _ ,, r .?Gz404 2i . 't_ _. w 4C5 ,. this
ordinance. Any
surplus yalus w"_ t,as_1_ Ag in the Operating sa:a ng J,L::etC , after making the payments fox,
Operating E.>—er,.Ses required..ed Say, Section ='0 and the payments into e_S1e Current
...ent
Account u.ia.d Reserve Account of the Debt Service Fund required by Section 405
d.;.ld the payments into .la_1'e Operation Reserve s<v...'v..s._u _e:,Icsred by this section,
used - ,,� _..,- ., � _
�i,;,v uau _le Willy _0. any 'a a 'J u_ -purpose.
Section 407. . a% ey in th Current
. meeL Account .m the Debt Seice Fund
shall be used ba; the City rtC1r the purpose of paying o .....43K.I:i I.,.. r-..o.is.._;.)_.. .l s...,.
paying the princiDal of and interest on the Bonds or issued BCti:.t._s or Addi-
tional 3onds as such r _ c awp and interest ._w_l Eje, Ways y in the Reserve
Account C.,f the Debt Service
_. _.>..u_ shall ..o_..,..,o be used y the v-tjfi...s. said
jJ?,.a;y o s e r .+,..1,,e t s...re ,.,ana. to the extent that the moneys in the Current Account
..>.,. .... for said _ `.a' a y..., All moneys ....,_ the Debt ut....,„ 4;.,w,w.. Fund
shall be held by the City y w_,,. trust,, st, _n b_ y are hereby - e e to an(fl,
charged v_ t...,.l..h the payments s :-lamb M._...e,a.. ...n this section,
Section 408. Moneys on deposit to the credit of the Reserve nccount.
of the Debt Service Fund or the Claration Reserve Account of the Qeratinz
:.he discretion of the City Council of the City, Cr; invested
ri
wm direct u C."bJ_..4gC"i u.:_k`1,__s of, or obligations ✓........ principaland interest ofwhich
are unconditionally guaranteed by, ,.he United States Government.e.a.n..xent..m O:?_._,:4_ga tioi`,s
so purchased as a77 investment of 1 in either of such accounts shall be
deemed at all l G....t1ae, to be
part of such account,J, ,.,..e,d the interest ac u..g
thereon_>,.on c}....d any profit realized from a.;.u.h investment .a....<_....... be credited to
such accounz, and any loss resulting from such >_,.,„w?atr-tee L shall ?5 charged
,c ae a he best -,p-rice, z)bt�-�I,fuaa,-, �i, ob-
it e c ssa— s o o do n orde,
iga.11. as so iDurchaseJi 7,,haaeve t -,ay ba -i e
,c)--,-Ovida inioneys ss to -any c,,-- t,.r-�nsfe-r fro:n, such G..,...vu;.!
ARTICLE V.
PAR,
Tl=,d',_R CO-,T, F" =E CITY
section 501. The City covenants and agrees that it will duly and
punctually pay, or cause to be paid, the principal of all Bonds issued
under this ordinance and the interest thereon, on the dates, at the place
and, --n ''lie manaer set forth in such Bonds and in the coupons thereto apper-
taining, and that it will faithfully do and perform and at all times fully
observe any and all covenants, undertakings, stipulations and provisions
contained herein or in the Bonds at any time outstanding hereunder. Excep-�;
as in this ordinance otherwise provided, such principal and interest are pay-
able solely from the Revenues derived from the Systems, which Revenues are
hereby pledged to the payment thereof in the manner and to the extent here-
inabove particularly specified, and nothing in the Bonds or coupons or in
this ordinance shall be construed as pledging the credit of the City or as
obligating the City, directly Or indirectly, or contingently, to levy a tax
there`.or,
Section 502. The City covenants that it will at all times maintain
Wiz_e Systems in good working order and condition and will continuously operate
the same, and will, from time to time, nuke all Proper re,L)airs,
and replacements.
Section 503. The City covenants that it will at all times fin, es-
tablish and collect adequate rates and charges for the servicesfurnished
by the Systems, so that the Revenues derived therefrom will at all times be
sufficient to provide funds for paying Operating Expenses as they become due
and payable and for making the Payments required by Section 405 to be made
to the Debt Service Fund and the payments required by Section 406 to be made
to the Operation Reserve Account, and to pay any other indebtedness
may become a charge upon the Revenues of the 3yatems.
Section 504. The City covenants that it will at all times carry in-
surance in a responsible insurance tanY Or companies authorized and quali-
fied under the laws a
f to assume the risk thereof, covering such 12ol-
erties belonging tc the Systems as are customarily insured, and against loss
or damage from such causes as are customarily insured against, by companies
engaged in the operation of water or sewer systems. The proceeds of any
and all such insurance shall, to the extent necessary, be applied to the
repair and replacement of the damaged property.
Section 505. The City covenants that, so long as the Bonds or any
of them shall be outstanding and except as in this ordinance otherwise ex-
pressly permitted, it will not sell, lease or otherwise dispose of or en-
cumber the Systems or any part thereof, and will not create or permit to be
created any charge or lien on the Revenues of the Systems ranking equally
with or prior to the charge or lien on such Revenues of the Bonds issued
under and secured by this ordinance. The City may, however, from time to
time, sell any machinery, fixtures, apparatus, tools, instruments or other
movable property acquired by it in connection with the Systems, or any ma-
terials used in connection therewith, if the City shall by resolution of its
City Council determine that such articles are no longer needed or are no
longer useful in connection with the construction or operation and mainte-
nance of the Systems, and the proceeds thereof shall be applied to the re-
placement of the properties so sold or disposed of, or shall be deposited
to the credit of the Operating Fund. The City may from time to time sell
or lease such other property forming part of the Systems as it may determine
is not needed or serves no useful purpose in connection with the maintenance
and operation of the Systems. The proceeds of any such sale shall be de-
posited to the credit of the Debt Service Fund, and the rentals from any such
lease shall be deposited to the credit of the Operating Fund.
Section 506. So far as it legally may, the City covenants and agrees
that, so long as the Bonds or any of them are outstanding, it will not grant
a franchise for the operation of any competing water system or sewer system.
Section 507. The City covenants and agrees that, so long as the
Bonds or any of them are outstanding, the rates charged for services fur-
nished by the Systems shall be equal and uniform, and no free service shall
be allowed except for City public schools or buildings and institutions
operated by the City.
Section 508. The City covenants and agrees that, so long as the
Bonds or any of them are outstanding, it will not issue Additional Bonds,
able for the purpose of paying the principa! of or interest on the Bonds
or the issued Bonds or the Additional Bonds, shall at any time be less than
the total amount required b7 --ne foregoing provisions of this section to be
paid into such account up to such time, after deducting, in the case of the
Current Account, :moneys previously applied to, or set aside and held by the
City for, the payment of matured Bonds or issued Bonds or Additional Bonds
and matured coupons appurtenant to Bonds or the issued Bonds or Additional
Bonds, the amount of the deficiency shall be added to the amount otherwise
required to be paid from the Operating Fund into such deficient acco-,='-_ in
each month thereafter until all such deficiencies shall have been made up.
C5) ',Tnenever and for so long as the moneys in the Debt
Service Fund are at !,east to the aggregate principal amount c the
Bonds and Issued Bonds and Additional Bonds issued and unpaid, plus the
amount of interest then due and thereafter to become due on the Bonds and
issued Bonds and Additional Bonds issued and unpaid, no further payment need
be made into the Debt Service Fund.
Section 406. The special account in the Operating Fund hno-,,,T_a as the
"Operation Reserve Account" created by the First Issue Bond Ordinance shall
be continued and maintained. The City Council has ascertained and hereby
determines that cash and investments amounting in the aggregate to Q44;4G9A,_
have been set aside in accordance with the provisions of the First issue
Bond Ordinance and are now held in said account and that said sum is more
than twenty-five percentum, of the total amount of the Operating :1,:penses of
the Systems for the twelve mon-,-,hs' -,Period ending on September 30, 1958as in
the event that the moneys held in said account shall hereafter e less than
twenty-five percentum. of the total amount of the Operating E=penses of the
Systems for any twelve months' period ending on the next preceding September
30th, the City shall, on or before the last days of December, 1,11a_rch, j'�,Ine
and September in each year, after making the payments fo ,,a -:pense ,
r oDe:. E�� _ z
required by Section 404 and the payments into the Current Account nM, Re-
serve Account of the Debt Service Fund required by Section 405, set aside
and pay into the Operating Reserve Account, out of any balance of the reve-
nues remaining in the Operating Firnd, the sudn, of $16,000.00, or such larzer
sum as may hereof ter be prescribed by the City Council, until the moneys
held in the Operating Reserve Account shall be equal to twenty-five per
-
centum of the total amcunt of the Operati_-,aE; E:Lpe-nses of the Systems for the
twelve months' period ending on the next preceding September 30th, after
,_io further payment need be made into such account un7eSS the moneys
therein shall become less than such total ama-,:nt, w_.._ event such further
payments shall be made from time to time into said account as may be neces-
sary in order to make the moneys therein equal to said total amount. Honeys
in said account may be used by the City for the purpose of any pay-
tents required by either Section 404 or Section 405 of this ordinance. An
surplus remaining in the Operating Fund, after making the payments for
Operating Expenses regairea by Section ana the pay�asnts into the Current
Account and Reserve Account of the Debt Service Fund required by Section 405
and the payments into the Operation Reserve Account required by this section.,
may be used by the City for any purpose.
Section 407. Koneys in the Current Account of the Debt Service Fund
shall be used by the City for the purpose of paying or making provision for
paying the jrinciDal of and interest cn the Bonds or issued Bonds or Addi-
tional 3onds as such principal and interest fall due. Moneys in the Haserve
Account of the Debt Service sal-71- also be used by the City for said
puri:)ose '�,-,Iaenev,er and to the exteno that the moneys in the Current Account
S�-all be insufficient for said Du..,.poae, All mcneyz in the Debt Service Fund
shall be held by the City in trust, and they are hereby pledged to and
charged with the ]�P_-yc-,eats mentioned in this section,
section 408. Moneys on deposit to the credit of the Reserve account
of the Debt Service Fund or the Veration Reserve Account of the Operating
Fund may, in the discretion of the City Council of the City, be invested
in direct obligations of, on obligations the Drinci-_cal and interest of
are unconditionally guaranteed by, the United States Government. Obligations
so -,cuxautas,�,J, as an investment of moneys in either of such accounts sh !I be
deemed at all times to be a part of such account, and the interest accruing
thereon and any profit realized from such investment be credited to,
such account, and any loss resulting from such investment shall be charged
u C d: .a 1:1^.:1�'e l:to .nee :iyr pa .m4D a orl._u.:.s er f v : —, c .: a
',r
ARTICLE V.
CO_V_Z_171,�M1,_'_�'TS OF C!
Section 501. The City covenants and agrees that it will duly and
Punctually pay-, or cause to be paid, the principal of all Bonds issued
under this ordinance and the interest thereon, an the dates, at the place
and in the manner set forth in such Bonds and in the coupons thereto apper-
taining, and that it will faithfully do and perform and at all times fully
observe any and all covenants, undertakings, stipulations and provisions
contained herein or in the Bonds at any time outstanding hereunder. E }yam ap,�
as in this ordinance otherwise provided, such principal and interest are pay-
able solely from the Revenues derived from the Systems, which Revenues are
hereby pledged to the payment thereof in the manner and to the extent here-
inabove particularly specified, and nothing in the Bonds '*:Cr coupons or in
this ordinance shall be construed as pledging the creait of the City or as
obligating the City, directly or indirectly, or contingently, to levy a tax
therefor.
Section 502. The City covenants that it will at all times maintain
tAle Systems in good ',,,_r1:1ng order and condition and will continuously operate
the same, and will, from time to time; Ma' z_�e all PrcPe:� repair s, rene-,Tals
and replacements.
Section 503. The City covenants that it will at all times fix, es-
tablish and collect adequate rates and charges for the services furnished
by the Systems, so that the Revenues derived therefrom will at all times be
sufficient to provide funds for paying Operating Ecloenses as they become cTui
and payable and for making the paymEnts required by Section 405 o be made
to the Debt Service Fund and the payments required by Section 406 to be made
to the Operation Reserve Account, and to pay any other inde`otednecs
may become a charge upon the Revenues of the . ystairn.s.
Section 504. The City covenants that it will at all times carry in-
surance in a responsible insurance company or companies authorized and quali-
fied under the laws of Texas to assume the a.isk thereof, covering such 2rop-
arties belonging tc the Systems as are customarily insured, and against loss
or damage from such causes as are customarily insured against, by companies
engaged in the operation of water ;r sewer s st.'.i`! �a.`1 proceeds
r �%
a !he ;�r GSC::,,.C�ti.s v.... any
and all such insurance sK.ta.,i..l to the extent necessary, be applied to the
repair aA;,d. replacement of the damaged property,
an,,,-
of them shall e outstanding aav except as in this ordinance otherwise ;-!:' -
pre..%s..:y permitted, it will l 1C+G sell, ,case or otheruise dispose of or en-
cumber
-:umbe.'. `he Systems or any part thereof, and ,,li l not create or permit i �o f e
s�i,
created any charge or lien on the Revenues o.k, Systems u n `ilg equally
with A. o.L. prior to the chargeio1,._ lien +'oa.i.w� such Revenues ae..Ak es w`_.. the 34o.nds issued
under and secured by this C::'u_ina ce.. The Cit ray, however, from ime to
time, sell any machinery, fixtures, apparatus, tools, instruments on other
11mo7able property acquired by it in connection with heG �`�'ms or any ma
4e _.,al s used _:1`! connection therewith, if the City shall by resolution of its
City Council determine that such articles cz,.:"l-'. no ng''? needed or are no
longer ?Asc,''ul it connection with she construction.io or operation a4z,a mainte-
nance
,t.. nt -nance of the Systems and he proceeds ds thergar shall he applied t
re-
placement of the properties so said or disposed of, or >.:.,ll be deposited
o the C*._..G'dit of the Operating Fund. The
43..uGJ nay w...,om time to w....'.Ae sell
43r lease such other property tad ......... g part :.J.:., the Systems s ,.;:s it may e d er_.i
ne
is of needed or scw.t:"\'es no useful purpose in connection with
the maintenance
de-
posited to the C'.wet;..::.'t o... he Deill; Service F,,,1-- and the rentals
hawse shall be deposited to the credit of the Operating
Section 506. So far as it legally_u ?tA=^w,f the City covenants and ,.-�„u-�ees
that, so long as the Bonds Ger any of them are outstanding, will not
grant
a franchise f.(`...' the operation of any competing ,,T tela system or sewer system,
Section 507. The City coTae .r._<::.7 and agrees that, w o long as the
Bonds or any of them are outstanding, the rates charged
fur-
nished ,t the Systems shall be eq'•.i"?.•' and uniform, u„„._+a, no _.}1"ee service shal
be allowed except for City public schools or building! and institutions
operated City.
that,Section 508. The City covenants and agrees
so ., as 4=k J.
Bonds ,....0 any of them are cutstanding, it will not issue Additional
Bonds,
.x'"ayeble from the Debt Service nL.;.C" except in .,_1.c manner and subject 'i:=,^.,
the limitations prescribed by 9ectfon 109 of this ordinance.
Section 509. contained in this ordinance shall be construed
to require the ``it,� to any payment except from the Revenues of ..,he
Systems,C-ms o_ from the moneys railed by the issuance dance ._f the Bonds.
Section 510. Tie City covenants that it will keep proper books of
Correct all relaNng tc the y
stams
Such books shall be o2an to the inspaction of all interested persons. The
City further covenants that nom later than three months after .,he close of
..:I.{."..sz, fiscal year, the City oil! cause to ,..:e prepared .,.. statement, certified
xDy -a cc -pttaa..r and .,_._..de .._..,.,....,.. certified pLtil..__..a accountant, showing _._`.'_ rea-
sonable
_ea-bon :.__e detail i the revenues a em..ues and �s.,_mases of the Systems wems u'.r__ng such fiscal
year, -v;;W,M assets <.n,._ l.ic,.._,_..;...:..t ie z of ux1e Systems at the beginning and close
of such fiscal year, the amounts on deposit at the close of such fiscal
year in each of the separate funds or accounts mentioned in this ordinance,,
and such other information u.Lat.......A_ s may be necessary to enable
Bonds and the radd^...._.o.,[.al Bv%4`?d,U o be fully w4,.7.....'..ia:��.tef, as to ,.„__l matters per-
taining
er-t a a_?tg .t.. the financial operation and condition of the Systems during.i_ng ,.`,h
fiscal ,year. The City further covenants that it will cause e a copy of ,_ ;.ch
c�.
e^ each the original purchasers ofthe Bonds G'..
the Additional iSt..=.o �.nC'A.+..... B4�.F.ds and also to L`at..h holder de o any o.. theBondsw..J. the Ad-
ditional tiV..,.al Bs..'.-"ds .wyt. shall have a,,:J'r„_F:w ve`., it-
Section
_w w
of them shall be outstanding, all deposits of money held in either the Con-
struction Fund or the Debt Service _ or the Operating Fund (other than
money,,.y _,,.nvesie as z?e...1«i_n..1'efor e provided) ...?!.U.___..,... be adequately secured SYVi,.
United States Government bon s or other marketable securities eligible as
Governors
security
e w .___U„i for the deposit osi of trust s it u.J_ds underregulations- of the Board d oar.
ld'o a'w:....._:o rJ of the Federal":;l :.it. se,.. a e System, indemnity bonds
,"t.. c f indemnity
companies aJa __wted a: security for United „tCGaGovernment L
=p1 ss r r or
as >u,T.y be required e✓,e y the pp lf wa.1--.e laws we e.k.ti. ...:.e State of
Te,,:-». m
ART1011 A.
Section 601. if c:. coupon appertaining to any of v.»::' .uW::::(:f.v al...wUl_._. ,.,,.ti.
_..'vy ""Y; before, at or after maturity, be transferreE or pledged separate
and apart from the Bond to ,.`iii ch it _!p._(J.,.». 1..::..»..`s, such coupon s__iE,l.l not,a un-l vu accompanied by s,..:c_. Bond, be entitled, in case of default v .1e i>unC'.'.e.M'3
to any benefit of or from this ordinance, except after prior
U
men-L in
fl;.J.l of the principal of ..,.w•' Bonds and of all coupons not so transferred of
pledged. If t,h`_- ui_.z... for the lwe%.0 i1a.m u o1 v..i.l,v1 coupon appertaining zo C;..ly v,k..
u»"!.', Bonds shall be directly C.. indirectly Mended, Jr t.s';m a uens1.V'``e there-of
shall be assented to by the City, or the City shall be a party to or approve
of any arrangement for such extension by purchasing such co-m:)ons or in any
other manner, Chan, anything in this ordinance contained to the contrary
notwithstanding, such coupon so extended shall not be entitled, in case of
default hareunder, to any benefit of or from this ordinance, except after
prior payment in _U .. of all Bonds outstanding hereunder and of all such
coupons as sh-a-'LL no-3 have been se extended.
Section 502. in consideration of the purchase and acceptance of the
Bonds authorized to be issued hereunder bj.; those ,,fho shall hold the :aarlo,
J
_''!'.o.!'! time to `1.i1':ie, this rv_..",,.,....:wnce ...,..-...11 be deemed to be and shall constitute
C..J...,t?'c-.,CU between the City .:.nG+. 4 .'wG-' >?.OG.el'".S _..ro'ii, l+iI124 to umd.tIlu of such Bonds;
and the c.Jve-i`?r.n.s and agreements herein se"'fu forth to be p^Y'fC:m"I?zGd o1'. behalf
`
of the Us_'uVr shall ine for the equal benefit, protection and security of the
holders of .�''i,n and all such 4:`xoz`::ds co-L-;"tel-?....,3 all Lry..3_ which, regardless'•••...�ess o.m
the time or times of their issue or
maturity, shall be of equal _rs,a..,... "d__l,hvu
priority v.3.. distinction of any +`,.+_a the Bonds or coupons ove... ...n
other thereof e��icept as expressly provided herein.
Section 603. Except as herein se a s.l.S1 e .i provided, nothing
in this ordinance is intended or shall be cvaau»- ewto confer upon any <:
L-
si;, firm o corporation, other t`»..._.__ the holders of the Bonds;; 'M'`xy right,
remedy or claim, legal or equitable, under or by reason of this ordinance,,
or ,/' covenant, condition o.. stipulation herein,. v.........;a ordinance and a...,»a. o-6'
its covenants, conditions and stipulations being intended to be for the sole
and exclusive benefit of the holders from time to time of the Bonds.
Section 604. In the event that any one or more of the provisions of
this ordinance shall for any reason be held to be illegal or invalid, such
illegality or invalidity shall not affect any other provision of this ordi-
nance, and this ordinance and the Bonds issued pursuant thereto shall be
construed and enforced as if such illegal or invalid provision or provisions
had not been contained in this ordinance.
Section 605. All ordinances and resolutions in conflict herewith are
hereby repealed in so far as they conflict herewith.
Section 0506. This ordinance shall take effect and be in full force
and effect from and after the date of its passage.
Mayor of the City of Fort Worth, Texas
i
ATTES, :
I'
ty ecretary of the City of
Fort Worth, Texas
APPROVED AS TO FORM AND LEGALITY:
City Attorney of the City of
Fort Worth, Texas
(Form of Bond)
Tito 1"To.
UNITED STATES OF AMERICA
ST ATE, OF T=AS
COUNTY OF TARRANT
CITY OF FORT WORTTH
WATER AND SEWER REVENUE BOND
SERIES 90
$1,00,0 $1;000
The City of Fort Worth (hereinafter called the City); a municipal
corporation of the State of Texas, for value received, hereby promises to
Day, solely from the revenues hereinafter referred to, to the bearer on
March 11 19 the principal sum of ONE THOUSAND DOLLARS ($1,000), and
to pay, solely from said revenues, interest on said principal sum from the
date of this Bond, at the rate of per centum
C %) per annum, semi-annually on September I and larch 1 of each year,
until the City's obligation with respect to the payment of said principal
sum shall be discharged® So much of said interest as shall be payable at
or before the date of maturity of this Bond expressed herein will be paid
only upon presentation and surrender of the annexed interest coupons as
they severally mature, and so mach of said interest as shall be payable after
said date of maturity will be paid to the bearen of this Bond® Payment of
the principal of and interest on this Bond will be made at the principal
office of The Hanover Bank, in the Borough of Manhattan, City and State of
New York, in such coin or currency of the United States of America as at the
time of payment shall be legal tender for the payment of public and private
debts®
This Bond is one of a duly authorized issue of coupon bonds of the
City, known as its Water and Sewer Revenue Bonds, Series 90 (hereinafter
called the Bonds), limited to the aggregate principal amount of One Million,
Eight Hundred and Fifty Thousand Dollars ($1,850,000-00), dated larch 1,
1959, maturing serially on larch 1 in various years, and numbered from 7,251
to 9,100, in the order of their maturity� The Bonds are issued or to be is-
sued for the improvement and e:Lten)sion of the City's Water System and the
improvement and extension of the City's Sewer System, and the Bonds are pay-
'1 the II'' derived �: ,sty C= y=from the e nn e_ .y ,.`i'-� '" the e
u..r:"Lly. from la,kl.'. Net •„1..��`,,:.e1'vt..a 4i f �' City �•i.1 ia,.. �..�.�J.,C tr.i.�....:a.,. Q.., u�.-
Ct ' _. w v ..c .me he City _.. not �A^lC'.l..L,N...ed too
...e L,� � v`J%L'�� �,® Sewer�:".� ;J,_.�w:...wa.. 1. •.�.�.:,' •�.. lr,�b .L wu
rightthe payment of the Bonds, and the holder hereof shall never have the
to vtCaalr-.nd va;ytlu'i`?."t; of this A iS i W. out of any funds raised or to be raised
`
t" , ,
by C,c`2,�'>�: sOnw T';4 B�...a.Uis are issued or "Gc, be issued from time to time ',.'.!2der
and pursuant to cz.`?d Gq;.'.C=,ly and ratably secured by an o?'Gi.1.icsnce entitled
"in ordinance 1 rGv3 4 ing or the issuance of revenue bonds of he City of
+o7G 'iluCuain
GAC aggregate principal caGGiam CrC1�. iF'l 4 cn, Eight
aglt1 .
mi rCd.
and Fifty Thousand Dollars 01,350,000-00), in addition to v installments
of revenue.entre 'vends aggregating Seven hi uyio , Two Hli_u C real and Fifty Thousand
is-
sue of Eighteen Million n .Jo.1._l a s Q13,000,000.00). ,i.:i'd in addition to five
installments of revenue bonds aggregating Fourteen Killion, Two Hundred and
Fifty housand Dollars (,"1 02;0,CCC.C'C') heretofore re i buedr and sold out of
an authorized issue of Fifteen Million Dollars 015,000,000.00) and Eighteen
t1?.._l„_o'n Dollars X418 00'0,000.0 1 1 revenue fan? previously authorized .,._
Cl 4� 1" t 1 c^ �Gva v Q b 1
issued,d, t.r finance the improvement and extension of he City's 4'u`cs.ter° a.1 i,
;Sevres Systems; providing for the payment of such a.C"nds solely from he reve-
nues
a'Uve -1_'_es of such Systems; pledging a portion o1 such revenues to '.:iuch payment;
entering into certain covenants c2J agreements with respect ' t _.ceP operation
of such Systems and the application of the revenues derived therefrom; and
repealing all C:^rQ?naw":ces in conflict herewith,4 adopted by '.',he City Council
of 4'ie City J% `an February 27, 190-0, o which. ordinance reference is hereby
L•CEe for iv more specific description of t,v,.c^,. revenues charged with ai`'_u pL=a^dgei,
to the payment?, of the principal o cudd interest � Bonds, dor :.
S' J .P. .C` iii lr...G J`J_%QS, aaa:.b .L a;
statement.:.ntf o.I. the nature and extent o such security, 'a,^,. the rights of the
bearers of the Bonds and of the vwn_.texed interest coupons with respect to
such S(:".:7:L`ity, and of .he agreements of he City with respect thereto, C,11d
u
statement fo_ � ,
E.J
_ c".. ow� v.�iC�., .�✓!�C.zw r_..o`ris up.:,« ,u h...ed.: obligations on GL parity with
u1.z
'ulz'_...0 BiC;.<:d may be iss?;;.C'ite 'i!S,M v?o?.1ds of a,!;.:.s ?_tise;eu and .,.......:Ca the $39,500,000-00
of Fonds previously issued and the $750,000.00 of i...."..uc..d
ly with the isu,-.:1+..,e of the aC)._ds of his issue, all issued C-'d vC finance the
improvement and extension o,1. the City's
'via-+....b and Sewer Systems, C4.L'e secured
aq ca.A.1.y and ratably by a pledge of the net revenues of such Systems.
'y�.i e i4lV ^ payable subsequent to 1tier...h 1y 1>)'O, shall at'.ie rQ:..I-G-.e.Ce..ni1zi.]_e
prior o their respective I:.a'u'...i,a.i LFies at ifh���`.. Qe Vion L1f the C....ty, on la cid
970 . on h.-,r,.h 1 of s:z,ny year subsequent o 1970, upon the following
terms and conditions, viz. : (1) The Bonds called for redemption on any
Aarc A _.. must include all of the BCtt_ds w,..v..n outstanding or must the�e t..o
LU lx^
sta7. din Bonds bearing he highest identifying numbers; (2) the redemption
price shall be ,_ • and accrued r 7:,.....QS i, to date of redemption, ?u., a __'_'w.•
follow-
ing respective i.;_vt years: 19 70, y"�'-i e'tV.s 1971, $22-50; 1972, 120.00; 1973;
$17-50; 1974, $15-00; 1975, °u 50; 1976, $10-00; 1977, $7.50; 1978,1^ $ai.00
1979,9. ic' r ..,iw__ without premium i.. _'F'dQe.._ed after 19719 wL1.cw. (3) least
thirty y �ays prior to the date upon which such redemption G':...ptiE_rn a_ to �.,}'`..' made,
notice of _nt:.:T'si._GC;r!t to .'.;7.`3._ (' su...,., redemption, describing the Bonds UQ be re-
deemed,
Q-deet_:sed must be published ,,,t least once in a newspaper seer pri._ve in the English
language age _nd published and of general circulation in the City of Fort Worth,
in the State of Teas` ;::`1d must be at least once in a financial
journal published;alaed _._t the Borough Q _� w E w..._. _ City � _ o
..'�.cs,_.,..i..�.s;:, �cL Gl:�.e ....�' wwi...,. State int`.' _5•
York.
.
Each successive holder Qat .....is Bond, ai?.'u each successive holder of
each. of the coupons hereto attached, is conclusively Dresui ed to forego and
_. :Qu;c- his equities in favor of a1hse aLent holders n� ' value without
notice, and o agree that this Bond and each of the coupons hereto tt.:.ched
may be negotiated by delivery by any person having possession thereof, how-
si,.+e`.;eC such possession _....-,y have ''Qeen acquired, :'.:?u ,r1.G., ...i..:a.y holder ,#!" (r s..>G.11
_iv ay 1Ei wi Bona LM any of the coupons from any person for
without E7."ice AGti=e thereby has acquired absolute Lto %it!e thereto, free from any
defenses enforceable against any prior holder c1nd ,Frew' :n:Com all equities
and claims o1. ownership o ..,,_.ty such h prior holder.
This B.^n;' is issued w vw.uao h Constitution ;nlstatutes Q_ the
State of Texas, including particularly Articles !III to 1118, inclusive,
of the l ✓25 Revised Civil l :etattZt.. s of Te, "f'', as a:me d gid, Chapter 24 3 Acts
51st Legislature (1949); C.G1a ser 250, Acts M e l; Legislature (1949) as
amended by Chapter 23, Acts 52nd Legislature 0951), and pursuant to propo-
sitions authorizing the encumbering of the income derived by the City fraim
the operation of the City's Water System and the City's Sewer System to
provide for the payment of the $18,000,000.00 principal amount of bonds (Of
which the $1,850,000.00 principal am,ount of Series 90 above described are
a part), adopted by a majority of the resident, qualified electors of the
City owning taxable property in the City, and who !ad duly rendered the same
for taxation, votinS at an election held for that purpose on january 319 1956,
and pursuant to the above mentioned ordinance. All acts, conditions and
things required by the Constitution or statutes of the State of Texas to eN-
ist: be performed or happen precedent to or in the issuance of this Bona
exist, have been performed and have happened; and the amount of this Bond,
together with all other indebtedness of the City, does not exceed any iimit
prescribed by the Constitution on statutes of said State.
!N TESTII)101�Tl `o-EER OF, the City of Fort Worth, in the State of Tenas"
has executed this 3ond by causing it to be signed by the facsimile signature
of the lkyor of the City and attested manually by the City 3acretary and
approved as to form and legality by the facsimile s ignature of the City At-
torney, with the sea! of the City thereunto duly affined or impresscd, and
has caused the annexed interest coupons to be -_ecuted with the facsimile
signatures of the Mayor and City Secretary, and has caused this Bond to be
dated the first day of hArch, n. D- 1959�
CITY OF FORT WORTH, TEHAS
BY
ATTEST.
__Aity Secretary
(Form of coupons representing interest payable
on or before March 1, _9"0)
The City of Fort Worth, Texas, will pay to bearer,
solely from those certain revenues referred to in the
On the
Bond hereinafter mentioned, at the principal office of first day of
The Hanover Bank, ..,.. the City i1 w:>:L New York, New York, Sept., ......;w .�...
1'l-t,rc1a
the sum of Dollars
being interest then due on its Water
SERIES 9P
and Sewer Revenue Bond, Series 90 dated Mf.`.rch. Vim, 19jq. rr�� ;^�,
B �Aw1 1�To.�
The holder er .'3r e''o shalt never r ? ave the right to demand
C d
payment of this obligation out of any funds raised or
to be raised by taxation.
s."`,rod
12TEST:
a
City Secretary
(Foxm af co ons re-present.ing int-arest, ja-,,,Fable
sul-,�sealaenl,- t-Ic 2,larclal 1, 1970)"
Uln--'Less 3ond -',- c-rcinaaftler mentliicne,5 shall '-'--a-,,F,,a
-teen called for -'Dreviouls ..Ude. p'.,. and ]-payment 'thereof
L"1;5a)a,e o-r auly p-rcn-L-led for; t-Ine City cf -Fort-,
On the
Tel7l3s. -,,-ill -pa-,,- -'u-o "o-aina- solely frorra -'--hoz,7:- certa-L-1 v ciay of
- -, i. -—
rc-iso'.Y,aes re--��'--rred to in the Bc-laa he--rei-aafler m-entionec", Se` :,,1-1.: 19
a4- "l-, "I- l4arch;
E; c.-Il-c-e o-f T--e Hanover -.',-n tllae
Cfl-y of �7�ew 7 r
!,,T_-V,7 York, the sura,
1)C)113,r lbei-ncl, -inter-
:51 DM ll'�Clll
Series 90, dat-led llarch 1 21- h. Id
95-'. The "=7 er i e re c f
shall never 'h,.ave -- e right to demand p a :e In, -- -
,,,h t C,fL '-Iais
o'bl-*Lgatlli,,D:a oit cf. any funds raised or '3c, b-- raised
bj-'.
,,ITTEST
(Form of Comptroller's Certificate)
OFFICE OF COMPTROLLER §
STATE OF TEXAS
I HE=Y CEBTIFY that there is on file 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 required by law, and that he
finds that it has been issued in conformity with the Constitution and laws
of the State of Texas and the Charter of said City, and that it is a valid
and binding special obligation of said City of Fort Worth, Texas, payable
from the revenues pledged to its payment by and in the ordinance authoriz-
ing same, and said bond has this day been registered by me.
WITNESS my hand and seal of office at Austin, Texas, this the
day of , A. D. 19
Comptroller of Public Accounts
of the State of Texas
(Form of City Attorney's Certificate)
The within bond is hereby approved as to form and legality.
City Attorney