HomeMy WebLinkAboutOrdinance 2851 ORDINANCE NO. G` 1
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF REVENUE BONDS
OF THE CITY OF FORT WORTH IN THE AGGREGATE 'PRINCIPAL
AMOUNT OF SIS: MILLION DOLLARS ($63000,000.00)3 IN ADDI-
TION TO 'ILIO INSTALLMENTS AGGREGATING YOUR MILLION, SIS
HRS AND FIFTY THOUSAND DOLLARS ($4,6503000-00) OF
REVENUE BONDS HERETOFORE ISSUED AND SOLD OUT OF AN AU-
THORIZED ISSUE OF EIGHTEEN MILLION DOLLARS ($18,0002000Q00).,
TO FINANCE THE I1TROVEMENT, >EXTENSION AMD ENLARGEMENT
OF THE CITY'S WATER AND SEWER SYSTEMS; PROVIDING FOR THE
PAYMENT OF SUCH BONDS SOLELY FROM THE REVENUES 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 SYSTEMB AND THE`'
APPLICATION OF THE REVENUES DERIVED THEREFROM; AND RE-
PEALING ALL 'ORDINANCES IN CONFLICT HEREWITH,o
WHEREAS, the City of Fort North (hereinafter referred to as Cite)
has established, and for many Years has maintained and operated, and is
now maintaining and ;operating, a system (hereinafter referred to as the
City Niter System) used or useful to obtain ,a supply of eater for-said.
City and its inhabitants and to conserve,- treat and dispose of such waterp
and also a system (hereinafter referred to as the City ,Sever ,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 Jan-
uary 25, 1949, a majority of the qualified voters of the City voted in
favor of each of the following two propositions:
PROPOSITION NO m ;].
Shall the City= of `Fort worth, Texas, through its City
Council, issue its negotiable coupon hands in the principal
sum of Twelve billion, ;Four Hundred Thousand Dollars (112,-
400,000.00)
1.1,-400,000 00) for the purpose of improvi ng, extending and eat=
Arging the waterworks System 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 in-
stallment being; payable serially as may be determined by
the Cite 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 four per cent
0%) 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 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 se-
cured 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, thro oh its ;City
Councili issue its negotiable coupon bonds in the principal
sin of ''give Million, Six Hundred Thousand :Dollars ($5.,600,-
000.00)
$5,600,-000.00) for the purpose of improving, extending and enlarg-
ing 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 determine, the bonds of each' in--
sta gent 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 four per cent
(4 )
per an-trim from the date thereof, payable semi-annually.,
and to provide for the payment ;of principal al a-rid 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 reve-
nue bonds as submitted in Proposition No. 1, to be secured
additionally by a pledge of the net revenues from the opera-
tion of said Waterworks System?;
and.,
'ATHEREAS, the ordinance calling said election provided that if Moth
propositions were duly approved at said election, the City Council could,
at its option, combine the Twelve Million, Four Hundred Thousand Dollars
($12,400,000.00) Waterworks System Revenue Bonds and the Five million,
Six Hundred 'Thousand Dollars ($52600,000.00) Seger System Revenue Bonds
into one issue and pledge the Net Revenues from the operation of "Doth
the Waterworks System and the Sewer System to the payment of the princi-
pal of and the interest on said entire issue of bonds; and,
WHEREAS,REAS, the Cite Council of the City of Fort Worth, Texas, by
ordinance duly adopted on the 20th day of April, 1.949, did authorize the
issuance of Two Million Dollars ($2,0002000.00) of 14ater and Seger Reve-
nue Bonds combined in one issue, said bonds being numbered from one (1)
to two thousand (2,000), both inclusive; and the said City Council, by
ordinance duly adopted on the 14th day of September, 1949, did authorize
the issuance of Two 'illion, Six :hundred and Fifty Thousand Dollars
($2.76502000.00) of hater and Sewer Revenue Bonds combined in one issue,
said bonds being nuirbered from two thousand and one (21001) to forty-six
hundred and fifty (41650), both inclusive; and it was provided in both
of said ordinances that the City of Foal, Worth might issue additional
bards payable from the Debt Service Fund created by the first ordinance
and secured, equally and ratably with the bonds authorized by said,ordi-
nances,, by a pledge of the Revenues of the Systems, conditioned, however,
that the additional bonds shall be issued for the purpose of improving,
extending or enlarging the Systems; -haat at the time the additional bonds
are issued, the Cite shall not be in default in making any paayrnent re-
quired
e-quired by- any provisions of said ordinances; 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 immediately preceding the time
of issuance 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 additional bonds these outstand-
ing and the additional bonds about to be issued; and that the principal
of the additional bonds shall be made payable on March lst of the years
in which such principal is ,payable, and the interest on the additional
bonds shall be :jade payable semi.-annually on September lst and JtiJarch lst;
and,
WHEREAS, the City Council has found and determined that the reve-
nue bonds now proposed to be issued shall be for the purpose of improv-
ing, extending or enlarging such City Water and Seger Systems that the
City- is not now, and has not been, in default in the patent of any sum
required in any of the provisions of said ordinances authorising the is-
suance of Two Million Dollars (�2,000,000,00) Water and 'Sewer Revenue
Bonds;, adopted the 2.Oth day of April, 1949, and authorizing the issuance
of Two Million, Sias hundred and Fifty Thousand Dollars 02,050,000,00)
Water and Sewer Revenue Bonds, adopted the 14th day of September,, 1949;
that theamountof the average annual Net Revenues of the Systems com-
puted by dividing by two the Net Revenues for the two fiscal years im-
mediately preceding the time of issuance of the additional bonds is far
in excess of 15 of the ma i.miva aggregate amount of principsl and hater-
est payable in any future fiscal. year. with respect to the bonds now out-
standing and the additional bonds now proposed to be issued; and that the
principal of the additional bonds shall be made payable on Larch lst
Of the years in which such principal is payable, and the interest on the
additional bonds shall be ina.de payable semi-annually on 'September lst
and Larch lst of each year, respectively; and,
WHEREAS, Five Hundred and Fifty Thousand Dollars ($550,000 ;00)
of said bonds authorized by said ordinances adopted on .April 20� 194.9,
and September 14, 1949, were issued for the purpose of improving, ex
tending and enlarging the City Sewer System and Four PLillion, One Hundred
Thousand Dollars ($4.,100,000,00) of said bonds authorized by said ordi-
nances were
rdi-nances -were issued for the purpose of improving, extending and enlarging
the City Water System; and,
WHEREAS, it is deemed wise and expedient by the City Council of
the City of Fort Worth, Texas, in the exercise of the discretion reposed
in it by law, that Six 11illion Dollars (jp6,000,000m00) of said bonds, in
addition to the Four Million, Six Hundred and Fifty Thousand Dollars
($4,650,000.00) of said bonds heretofore issued and sold out of the au-
thorized issue of Eighteen Million Dollars ($15,000,000.00), be issued
in bands at this time, said bonds to be issued being a part of Series 50,
designated "Water and Sewer Revenue Bonds"; and,
WHEREAS, the following teras, 1-here used in this ordinance, un-
less 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 ="City Sewer System"
mean the systems described in the first para-
graph of this ordinance
(2) "Bonds" shall mean the bonds described in
Section 101 of this ordinance
(3) ":Additional Bonds" shall .wean the bonds here-
after issued as provided in Section 109 of
this ordinance.
(4) "Issued Bonds" shall mean the Issued Bonds
described in Section 401 of this ordinance;
(5) 1e0perating Expenses" shall mean Operating
.Expenses as defined in Section 4 I of this
ordinance
(6) "Revenues" and "Net Revenues') shall mean, respec-
tively, Revenues and Net Revenaes as defined in
Section 401 of this ordinance.
(7) "First Issue Bond Ordinance" shall mean the ordi-
nance hereinbefore described, adopted by the
City Council on April 20, 1949.
(8) "Operating Fund" shall mean the fund described
in Secticn 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 Ac-
count 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.
(12) "Year" or "Fiscal Year's shall mean the yearly
period beginning March l in each year.
NOTiv, THEREFORE,
BE IT ORDAINS BY THE CITY COINCIL OF THIS CITY OF FORT WORTH, TEXAS;
C
ARTICLE I,
AUTHORIZATION AND DESCRIPTION OF BONDS
Section 101. Bonds of the City, being a part of the bands re-
ferred to .in Proposition No, 1 at the election held January 25, 19492
shall be issued at thistimein the aggregate principal amount of Three
Million, Five Hundred Thousand Dollars 03,500,000.00) for the purpose
of improving,, extending and enlarging the City Water System, and bounds
of the Citi-, being a part of the bonds referred to in Proposition No. 2
at the election held as aforesaid, shall be issued at this time in the
aggregate principal amount of Two Million, Five Hundred Thousand Dollars
($29;002000, 00) for the purpose of improving, extending and enlarging the
City Seger System, All of such bonds (hereinafter: referred to as the
Bonds) shall constitute a single issue, be a part of Water and Sewer
Revenue Bonds, Series SO, and be in addition to the Four Million, Six
?hundred and Fifty- Thousand Dollars 042650,000.00) of said Bonds hereto-
fore issued out of the Eighteen Million Dollars ($18,0002000,*00) in Bonds
authorized to be issued at the said election held on January 25, 1949,
The Bonds shall be payable solely from the Net ,Revenues ,of the Systems,
as defused. in Section 401 of this ordinance, The credit of the City shall
not be pledged for the payment of the Bonds, The holder or holders o
the Bonds shall never have the right to demand payment thereof out of
any funds raised or to be raised by taxation.
Section 102, The Bonds are hereby authorized and shall be issued
pursuant to the Constitution and statutes of the State of Texas, includ-
ing particularly Articles 1111 to 11152 inclusive, of the 1925 Revised
Civil Statutes c:f Te.-,as, as amended.
Section_103. The Bonds shall be six thousand (6,000) in number,
numbered from- forty-six hundred and fifty-one (4,651) to ten thousand,
six hundred and fifty (10,650), inclusive, and of the denomination of one
Thousand Dollars ($1,000.00) each, shall., be dated March 1, 1951, and
shall mature serially in numerical order on March lst of each year, as
follows:
Section 105. The Bonds shad be payable to bearer, without privi-
lege of registration. They shall be signed by the payor of the City and
shall be attested by the City Secretary. The corporate seal of the Cite
shall be affixed to or impressed upon each Bond. The interest coupons
representing interest payable on the Bonds shall 'Dear the facsimile sig-
natures of the ItiTayor and City ,Secretary. Each successive holder of eaca
Bond, and each successive holder of each of the coupons attached to the
Bonds, is conclusively presumed to forego and renounce his equities in
favor of subsequent molders for value: without notice, and to agree that
such Bond 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 holder who shall have taken such Bond or any of
such coupons from any person for value and without notice thereby has ac-
quired absolute title thereto, free from any defenses enforceable against
any prior holder and free from all equities and clai m.s 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 to be endorsed on the Bonds shall be in substantially
the folloidng forms, respectively, Toth the proper insertions, substitu-
tions and variations as in this ordinance provided or permitted:
Section 107 . After the Bonds have been executed by the M47or and
City Secretary in accordance with their teras, they shall be presented to
the Attorney General of the State of Texas for examination and approval.
Al'te'r the Bonds have been approved by the Attorney General, they shall
be registered by the Comptroller of Public Accounts of the 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 Tie Mayor and City Secretary are hereby authorized
to execute said Bonds and to impress thereon the corporate seal of the
City,, The City Treasurer is hereby= authorized to deliver said Bonds to
the purchaser o8 purchasers to whom they may be sold by the City Council
upon receipt of the purchase price to be paid by such purchaser of pur-
chasers,
Section 109.. In addition to the Bonds authorized by this ordi-
nance, the City may issue bonds (hereinafter referred to as Additional
Bonds) payable 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
imorovin;,, extending or enlarging the Systems;
A That at the time the Additional Bonds are issued, the City
shall not he in default in reaming any payment required by Section 40A,
405 or 406 of this ordinance;
(c) That the amount of the average annual Net Revenues of the
Systems computed by dividinE by two the Net Revenues for the two fiscal
years immediately preceding the time of issuance of the Additional Bonds
shall be not Less than 1502 of the maximum aggregate amount of principal
and interest sayable in any future .fiscal year with respect to the Bonds
and.. Additional Bonds then outstanding (including Issued Bonds as herein-
after
erein -alter defined) and the Additional Bonds about to be issued; and
(d) That the principal of the Additional Bonds shall be made pay-
able on Liar chL 1 of the years in which such principal is payable and that
the interest on the Additional Sonds shall be made payable sem-annually
on Septerrioer 1 and March 14
Provided, however, that with the exception of Additional Bonds
to be issued pursuant to the propositions set forth in the preamble o
this ordinance, adopted by the qualified voters of the City at an elec-
tion held on January 25, 1949, no Additional Bonds shall be issued unless
and until the City shall have been authorized by law to issue them„ All
Bonds issued pursuant to said propositions, whether issued by virtue of
this ordinance or by virtue of earlier° or subsequent ordinances or reso-
lutions, and whether issued at one time or from time to time, shall be
deemed and treated as a single issue of bonds and as representing parts
of the same indebtedness, within the meaning of Article 1113 of the 1925
Revised ,Statutes of Texas, as amended,
ARTICLE II.
EDaM'iION OF BONDS BEFORE MATUARI`I`Y
Section 201,, The Fonds payable subsequent to Harch 1, 1979, shall
be redeemable prior to their respective maturities, at the option of the
City, on March 1, 1959, or on March 1 of any year subsequent to 1959,
upon the following terms and conditions, viz.- (1) The Bands called for
redemption on any TVILarch 1 must include all of the Bonds then outstanding
or must be the outstanding Bonds bearing the highest identifying numbers;
(2) the redemption price shall be par and accrued interest todateof re-
demption, plus a premiiun for each Bond redeemed, of the following respec—
tive amounts in the following respective years; 1959, �25A00; 1960,
,022.50; 1961, X20#00; 1962, $1750; 1963, X15.00, 1964, $12..50; 19652
t'10.00; 1966, $7.50, 1967, $5.00; 19652 $2.50; and without premium if re-
deemed after 1968; and (3) at least thirty days prior to the date upon
which such redemption is to be made, a notice of intention to make such
redemption. describing the Bonds to be redeemed, rust be published at
least once in a newspaper printed in the English language and published,
and of general circulation in the City of Fort North, in the State of
Texas, and must be published at least once in a financial journal pub-
lished in the Borough of Manhattan, in the City and ,State of New York,
Such option may be exercised by ordinance or resolution duly adopted by
the Cite Council of the City.
Section 202. Nothing contained in this ordinance shall be con-
strued to limit or affect the right of the City to purchase, witn any
moneys lawfully available for such purpose, any of the outstanding Bonds
at a price less than the redemption price hereinbefore prescribed.
,Section 203. Notice having been given by publication in the
manner prcvided in Section 201, the Bonds called for redemption shall be-
come due and parable on the redemption date designated in the notice at
the redemption price determined, as provided in Section 201, and upon
presentation and surrender thereof at the place of paKJmient thereof,, to®
gether with all appurtenant coupons maturing; subsequent to the redemption
date, such Bonds shall be paid at the redemption price aforesaid, All
interest installments represented by coupons which shall: have matured on
or prier to the redemption date shall continue to be parable to the bearers
of such coupons. interest on any Bonds to be redeemed shall cease to ac—
crue from and after the redemption date specified in such notice unless
theCitydefaults in the payment of the redemption price thereof.
Section. 204. All Bonds redeemed prior to maturity under the pro—
visions of this ordinance, together with the uiT atured coupons, if any,,
shall be cancelled and incinerated by the City 'treasurer forthwith, and
a certificate showing the destnaction of such Bonds or coupons shall be
filed in the office of the City treasurer..
ARTICLE III
APPLICATION OF PROCEMS OF BONDS
Section 301. All moneys received by the Cite in payment for the
Bonds, exclusive of accrued interest, shall be credited to a speci
ARTICLE, IV,
APPLICATTON- OF nEV MUES
Section 401, Where used in this ordinance (1) the term "Systems"
shall be deemed to include all properties of every nature owned or used
by the Cite and used or useful in the operation of the City Water System
or the City Sewer System, including real estate, personal and intangible
properties, whether lying within or without the boundaries of the City,
and shall include all improvements, additions and extensions which may
hereafter be made to said properties or Syste:ms; (2) the term. "Operating
Expenses" shall mean the reasonable and proper expenses of operating and
maintaining the Systems, including, without limiting the generality of
the foregoing, expenditures for salaries, labor, materials, interest, re-
pairs and extensions necessary to enable the Systems to render efficient
service, and every proper item of expense, but such repairs and :exten-
sions -shall be limited to those ?,thich in the judgment of the City Council
are necessary to keep the Systems in operation and to resider adequate
service to the City and the inhabitants thereof, or necessary to meet
some physical accident or condition which would otherwise impair such Sys-
terns and the Revenues thereof; (3) the term "Revenues" shall wean the
gross revenue and income derived by the City from the operation;of the
Systems; (4) the terra "Net Revenues"" shalt mean the amount by which the
aggregate of the .Revenues received by the City in any year small exceed
the amount required to pay the Operating Expenses of such year; (5) the
tern "Issued Bonds"" shall_ mean the p2,000,000,00 Grater and Serer Revenue
Bonds dated March 1, 1949, issued pursuant to the ordinance entitled "",fin
ordinance providing for the issuance of revenue bonds of the City of Port
Worth in the aggregate principal amount of Two Million Dollars ( .-
OOO,OOO.0O) to finance the improvement, extension and enlargement of the
City's Water and Sewer Systems; providing for the payment of such bonds
solely from the revenues of such Systems; pledging a portion of such reve-
nues to such payment; entering into certain covenants and agreements
with respect to the operation of such Systems and the application of the
revenues derived therefrom; and repealing all ordinancesin conflict
herewith," adopted by the City Council. on April 20, 1949, and the �2,-
650,000.00 Water
,-650,000.00 'Water and Sewer Revenue Bonds dated September 1. 1949, is-
sued pursuant to the ordinance entitled "An ordinance providing for the
issuance of revenue bonds of the City of Fort North in the aggregate
principal amount of Two Killion, Six Hundred and Fifty Thousand Dollars
($2,650,,000.00), in addition to an installment of Two 11il.lion Dollars
(z�2,000,000.00) of revenue bonds heretofore issued and sold out of an
authorized issue of Eighteen i��:llion Dollars ($18,000,000 ,00).- to finance
the improvement, extension and enlargement of the City's Water and Serer
Systems; providing for the payment of such bonds solely ;from the revenues
of such Systems; pledging a portion of such revenues to such payment; en-
tering into certain covenants and agreements with respect to the opera-
tion of such Systems and the application of the revenues derived there-
from; and repealing all ordinances in conflict herewith,ate adopted by the
City Council on September 14, 1949; and (6) the tern "First Issue Bond
Ordinance" shall, mean the ordinance adopted by the City Council on April
203 1949..
Section 402. All Revenues (as defined in Section 401 of this or-
dinance) received or collected by the City or any of its officers or
agencies shall be deposited by the City Treasurer, as promptly as possi-
ble after their receipt, in a bank or banks authorized to act as depositary
or depositaries of the City, and shall be held by such bank or banks in a
special fund or account to be knot,m as the "Water and Sewer Operating
Fund" (hereinafter referred to as the Operating -0 d), ;established by the
First Issue Bond ordinance,-
Section 403, Sif0 ect only (1) to the right of the City to pay from
the operating Fund moneys required for Operating Expenses as provided in
Section 404 of this ordinance and (2) to the right of t`te City to expend
moneys in the Operating Fund in accordance with Section 406 of this ordi-
nance, all moneys paid or required by Section 402 to be paid into the
Operating Fund are hereby pledged to secure the payment of the principal
of, the redemption premium, if any, and interest on the Bonds (including
Issued Bonds and Additional Bonds issued in accordance with Section 109
of this orclinshce,, and this pledge shall be valid and binding from and
after the earliest date (hereinafter referred to as the Issuance Date)
upon irhich any Bards are issued pursuant to this ordinance. Revenues,
as received by the City, shall immediately by subject to the lien of
this pledge without any physical delivery thereof or further act,, and the
lien of this pledge shall be valid and binding as against all parties
having claims of any kind. in tort, o2 contract, or otherwise against the
City, irrespective of whether such parties have notice of such lien;.
Section 104, From the Operating Fund the City shall first pay
Operating menses as such exnen.ses become due and payable .
Section 405 (l) The Special Fund known as the "Waster and Sewer
Debt Service Fundq, (hereinafter referred to as "Debt Service d") es-
tablished by -the First Issue Bond Ordinance shall be continued and main-
tained,, and. such Special Funa shall be divided into a o'Current AccounVl
and a "Reserve Account" as provided in the First Issue Bond ordinance
All moneys paid into such accounts as hereinafter provided and as pro-
vided in the First Issue Bond Ordinance shall be deposited in one or .more
depositaries of the City as a ,Special Fund and shall be kept ;separate
from all other moneys of the City,
(2) On or before the last day of the first month
ending subsequent to the Issuance Date, and on or before the fifteenth
day of each month thereafter, the City shall, out of the moneys remaining
in the Operating :hind after payment of Operating Expenses then due and
pa,-z,,-able., pay
(a) Into the Current Account of the Debt Service Fund,
(l) An amount equal to one-sixth (1/6) of the
interest payable on the Brands (including
Issued Bonds and Addition2l Fonds) thea
outstanding ars the interest payment date
next: ensuing, :Less the amount if any, re-
ceived as accrued interest From the pur-
chasers of the Bonds and deposited to the
credit of the Current Account and avail-
able :for the purpose of paying said inter-
est;
nter-est, and
(2) An amount equal to one-twelfth (1/12) of
the ;principal of the Bonds (including, Is-
sued Bonds and. Additional Bonds) then out-
standing that will mature on the RAarch
first next ensuing; and
(b) into the Reserve Account of the ]debt Service Fund;
An amount equal to twenty per cent (20%)
of said payments into the Current Account;
provided, however, that whenever and for
so long as the amount in the Reserve Accoant .
sta.11 be as much as the aggregate amount of
principal and interest that will become due
and payable in the twelve months t period
beginning on the March 2 ner:t ensuing on the
Bonds (including Issued Bonds and Additional.
Bond;) then outstanding, no payment need be
made into the Reserve Account; and provided
further, that no greater payment need be rude
into the Reserve Account than shall be neces-
sary to make the amount in the Reserve Ac-
count equal to said aggregate amount 'of prin-
cipal
rin-cipal and interest.
(3) in addition to the a count required by the fore-
going provisions of this section to be paid into the Current Account of
the Debt ,Service Fond on or before the last day of the Month in which any
:Bonds or Additional 'fonds are delivered, the City shat.l pair into said
account, on or before said day, out of moneys remaining in the Operating
Fund after the payment of Operating Expenses then due and payable, an
amount equal to the amounts, if any, which would have been theretofore
paid, pursuant to said foregoing provisions, into the Current Account
with respect to said Bonds or Additional. Bonds (a) on account of interest,
if said Bonds or Additional Bonds had been delivered six months before
the interest payment date next ensuing, and (b) on account of principal,
if said Bonds or Additional Bunds had been delivered one year before the
principal payment date next ensuing.,
V.
(`+) if for any reason the moneys in the Current Ac-
count or the Reserve Account of the debt Service Fund, and actually avail-
able for the purpose of paying the principal of or interest on the Bonds
or the Issued Bonds or the Additional Bonds, small_ at any time be les;
than the total amount required by the foregoing; provisions of this sec-
tion to be paid into such account up to such time, after deductinS, 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 natured coupons appurtenant to Bonds or
the Issued Bonds or Additional Bonds, the amount of the deficiency shall
be added to the amount other,vais.a required to be paid from the Operating
Fund into such deficient account in each month thereafter until all such
deficiencies shall have been made ups
(5) Whenever and for so long as the moneys in the:
Debt Service Fund are at least equal to the aggregate principal mount
of 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 known as
the "Operation Reserve Account" created by the First Issue Bond. Ordinance
shall. be continued and maintained. On or befog e the last daps of Decem-
ber, March, June and September in each year, after making thepayments
for. Operating H::penses required by Section 404 and the payments into the
Current account and Reserve Account of the Debt Service Fund required by
Section 405, the City shall set aside and pay into the Operating reserve
Account, out of any balance of the revenues remaining in the Operating
Fund, the sum of *16,000.00, or such larger sum, as may hereafter be pre-
scribed by the City Council, until there shall be accumulated in the
Operation Reserve ,Account a suns which shall be equal to twenty-five per
centum of the total amount of the Operating, expenses of the Systems for
the twelve months f period ending; on the next preceding ,September 30th;,
after, which no further payment need be made into such account unless the
moneys therein shall become less than such total amount, in whish event
such Further payments shall be made From time to time into saipd account
as may be necessary in order to make the moneys tinerein equal to said
total amount. 11vloneys in said account may be used by the City ;for the
purpose of ma�:ing any payments required by either Section 404 or Section
405 of this ordinance. Any surplus remaining in the Operating Fund,
after making the payments for Operating menses required by Section 40
and the payments into the Current Account and Reserve Account of the .Debt
Service Fund required by Section 405 and the pau-ments into the Operation
Reserve Account required by this section, may be used by the City for
any lawful purpose.
Section 4.07. I.Ioneys in the Current Account of the Debt Service
Fund shall be used by the City for the purpose of paying; or taking pro-
vision for paying the principal of and interest on the Bonds or Issued
Bonds or Additional Bonds as such principal and interest fall cue.
Moneys in the Reserve Account of the Debt Service Fund shall also be used
by the City for said purpose whenever ,and to the extent that the moneys
in the Current Account shall be insufficient for said. purpose. All
moneys in the Debt Service Fund shall be held by the City in trust,
and they are hereby pledged to and charged faith the pa5nuents mentioned
in this section,
Section 408. IJloneys on deposit to the credit of the Reserve Ac-
count of the Debt Service FLind or the Operation Reserve Account of the
Operating Fund may, in the discretion of the City Council of the City,
be invested in direct obligations of, or obligations the principal and
interest of which are unconditionally guaranteed by, the United States
Government. Obligations so purchased as an investment of moneys in
either of such accounts shall be deemed at all times to be a part of such
account, and the interest accruing thereon and any profit realized from
such investment shall be credited to such account, and any loss resulting
from such investment shall be charged to such account, The City shall
sell at the best price obtainable any obligations so purchased whenever
it may be necessary so to do in order to provide moneys to meet any pay—
,rent or transfer from such account
A.LTICLE V,..
PARTICULAR COVENANTS OF THE 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 thisordinanceand the interest thereon, on the dates, at the
place and in the manner set forth in such Bonds and in the coupons
thereto appertaining, 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. Except as in this ordinance otherwise provided, such princi-
pal and interest are payable solely from the Revenues derived from the
Systems, which Reverses are hero-by pledged to the payment thereof in
the manner and to the extent hereinabove 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 therefor.
Section 502, The City covenants that it will at all times main-
tain the Systems in good working order and condition and will continuous-
ly operate the same, and will, from time to time. make all proper repairs,
renewals and replacements.
Section 503, The City- covenants that it will at all times fix,
establish and collect adequate rates and charges for the services fur-
nished 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 Sec-
tion 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 which may become a charge upon the Revenues of
the Systems..
Section 504, The City covenants that it will at all times carry
insurance in a responsible insurance .company or companies authorized and
qualified under the laws of Texas to assume the risk thereof, covering
such properties belonging; to the Systems as are customarily insured, and
against loss or damage from such causes as are customarily insured
against, bar companies engaged in the operation of water or surer 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
expressly permitted, it will not sell, lease or otherwise dispose of or
encumber 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 materials used in connection therewith, if the City shall by reso—
lution of its City Council Bete=-lne that such articles are no longer
weeded or are no longer useful in connection with the construction or
operation and maintenance of the Systems, and the proceeds thereof shall
be applied to the replacement 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 fora.ing 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 pro—
ceeds of any such sale shall be deposited 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 thein are outstanding, it
will not grant a franchise for the operation of any competing water sys—
tem or surer system.
Section. 507, The City covenants and agrees that, so long as the
Bonds or any of there are outstanding, the rates charged for services fur-
nished by
ur-=niched`by the Systems shall be equal and uniform, and no free service
shall be allowed except for City public schools or buildings and institu-
tions 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,
payable from the Debt Service Fund, except in the manner and subject to
the limitationsprescribed by Section 100of this ordinance.
Section 509$. Nothing contained in this ordinance shall be con-
strued to require the City to make any payment except from the Revenues
of the Systems or from the moneys raised by the issuance of the Bonds.
Section 510. The Cite- covenants that it -ill beep proper books
of account (separate from all of-1Mr records and accounts) in which full
and correct ,entries shall be nude of all transactions relating to the Sys-
terns. Such books shall be open to the inspection of all interested persons,
The City further covenants that not later than three months after the close
of each fiscal year, the City � ill cause to be prepared a statement, certi-
fied by a competent and independent certified public accountant, showing in
reasonable detail the revenues and expenses of the Systems dur r2; such fis�-
cal year, the assets and liabilities of the Systems at the beginning and
close of such fiscal year, the amounts on deposit at the ,close of such fis-
al year in each of the separate funds or accounts mentioned in this ordi-
nance, and such other information as may be necessary to enable' the holders
of the Bonds and the additional Bonds to be fully informed as to all matters
per°taininaV to tho financial operation and condition of the Systems during
such fiscal_ year. The City further covenants that it will cause a copy,of
such statement to be Trailed to each of the original purchasers of the Bonds
or the :additional Bonds and also to each holder of any of the'Bonds or the
Additional Bonds who shall have requested it
Section 514 The City covenants that, so long as the Bonds or
any of them shall be outstanding, all deposits of money held in either
the Construction Fund or the Debt Service Fuad or the Operating Fund
(other than money invested as hereinbefore provided) shall beadequately
secured by United States Government bonds or other marketable securities
eligible as security for the deposit of trust funds under regulations of
the Board of Governors of the Federal Reserve System, or by indemnity
bonds of indemnity companies qualified as security for United ,Mates Gov-
ernment deposits, or as may be required by the applicable laws of the
Stag of Texas,
ATICLE VI.
MISCELLANEOUS PROVISIONS
Section 601, If a coupon appertaining to any of the Bonds shall
in any way, before, at or after maturity, be transferred or pledged sepa-
rate and apart from the Bond to which it appertains, such coupon shall
not, unless accompanied by such Bona, be entitled, in case of default
hereunder, to any benefit of or from this ordinance, except after prior
payment in full of the principal of all Bonds and of all coupons not so
transferred or pledged. if the time for the payment of any coupon apper-
taining to any of the Bonds shall be directly or indirectly extended, or
the extension thereof shall be assented to by the City, or the City shall
be a panty to or approve of any arrangene--rst for such extension by purchas-
ing such coupons or in any other manner, then, anything in this ordinance
contained to the contrary notwithstanding, such coupon so extended shall
not be entitled, in case of default hereunder, to any benefit of or from
this ordinance, except after prior payment in full of all Bonds outstand-
ing hereunder and of all such coupons as shall not have been so extended,
Section 602. In consideration of the purchase and acceptance of
the Bonds authorized to be issued hereunder by those who shall hold the
sante from time to time, this ordinance shall be deemed to be and shall
constitute a contract between the City and the holders from time to time
of such ,Bonds, and the covenants and agreements herein set forth to be
performed on behalf of the City shall be for the equal, benefit, protec-
tion and security of the holders of any and all such Bonds and coupons,
all of which, regardless of the time or tisnes of their issue or maturity,
shah be of equal rank without preference, priority or distinction of
any of the Bonds or coupons over any other thereof except as expressly
provided herein.
:Section 603,E Except as herein otherwise expressly provided,
nothing in this ordinance is intended or shall be construed to confer upon
any person, firm or corporation, other than the holders of the Bonds, any
right, -remedy or claim, legal or equitable, under or by reason of this
ordinance, or any covenant, condition or stipulation herein, this ordi-
nance and all of its covenants, conditions and stipulations being intended
to be for the sole and exclusive benefit of the holders from time to time
of tha 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 ordinance, 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 606,. '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
ATTEST:
City .Secretary of the City of
Fort Worth, Texas
APPROVED AS TO FORM AND LEGALITY:
City Attorney of the City of
Fort Worth, Texas
Year Amount Bond Numbers
1952 $150,000100 4,651 to 4,800
1953 150,000.00 4,801 to 42950
1954 150,000.00 41951 to 51100
1955 1502000.00 51101 to 52250
1956 1503000.00 5,251 to 5,400
1957 1502000.00 5,401 to 5,550
1958 150,000,00 51551 to 52700
1959 150,000.00 5,701 to 51850
1960 2002000.00 5,851 to 6,050
1961 200,000.00 6,051 to 62250
1962 200,000.00 6,251 to 6,450
1963 2009000.00 62451 to 61650
1964 250,000.00 61651 to 6,900
1965 250,000.00 6,901 to 7,150
1966 250,000.00 7,151 to 71400
1967 285,000.00 7,401 to 7,685
1968 3402000.00 79686 to 89025
1969 375,000.00 81026 to 81400
1970 375,000.00 8,401 to 8,775
1971 375,000.00 8,776 to 9,150
1972 375,000.00 9451 to 9,525
1973 375,000.00 92526 to 9,900
1974 375,000.00 91901 to 102275
1975 375,000.00 103276 to 10,650
The interest on each Bond shall be payable semi-annually on September 1st
and March lst of each year until the Cityts 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 Central Hanover Bank & Trust Company, 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. The Bonds which ma-
ture subsequent to March 1, 1959, shall be redeemable prior to their re-
spective maturities, as provided in Article II of this ordinance.
Section 104. The Bonds numbered from forty-six hundred and fifty-
one (4,651) to fifty-eight hundred and fifty (5450), inclusive, shall bear
interest at the rate of four per centum (4%) per annum; the Bonds numbered
from fifty-eight hundred and fifty-one (5,851) to seventy-sax hundred and
eighty-five (71685), inclusive, shall bear interest at the rate of one and
six-tenths per centum (1.6%) per annum; and the Bonds numbered from seventy-
six hundred and eighty-six (7,686) to ten thousand, six hundred and fifty
(10,650), inclusive, shall bear interest at the rate of one and five-
tenths per centum (1.5%) per annum.
(Form of Bond)
No® No.
UNITED STATES OF AMERICA
STATE OF TITAS
COUtitTY. OF TAR.R.A vT
CITY OF FOr1.T WORTH
WATER AND SEWER REVENUE BOND
SERIES 80
1,000 11,000
The City of Fort Worth (hereinafter called the City), a municipal
corporation of the Stats of Texas, for value received, hereby promises
to pay, solely from the revenues hereinafter referred to, to the bearer
on March 1, 19 , the principal sum. of ONE THOUSAND DOLLARS 011000),
and to pay, solely from said revenues, interest on said principal suer
from the date of this Bond., at the rate of
per centum. ( Q per aiu an, semi-annually on September 1. and March
1 of each year, until the City's obligation with respect to the payment
of said principal sura shall be discharged. So much of said interest as
shall be payable at or before the date of maturity of this Bond expressed
herein mill be paid only upon presentation and surrender of the annexed
interest coupons as they severally mature, and so much of said interest
as shall be payable after said date of maturity will be paid to the bearer
of this Bond. Payment of the principal of and interest on this Bond will
be made at the principal office of the Central Hanover Bank & Trust Com-
pany, 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 boards of
the City, known as its eater and Sewer Revenue Bonds, Series 80 (herein-
after called. the Bonds), limited to the aggregate principal amount of
Six Million Dollars (;x;6,000,000.00), dated March 1, 1951, maturing' serially
on ,March 1 in various years, and numbered from 4,651 to 10,650, in the
order of their maturity® The Bonds are issued or to be issued for the
improve e t, -extension and enlargement of the City is 'Water System and
the improvement, extension and enlargement of the Cityfs Sewer System,
and the Bonds are payable from the Net Revenues derived by the City from
the operation of such Systems. The credit of the City is not pledged to
the payment of the Bonds, and the holder hereof shall never have the
right to demand payment of this obligation out of any funds raised or to
be raised by taxation. The Bonds are issued or to be issued from time to
time under and pursuant to and equally and ratably secured by an ordinance
entitled e$Ari ordinance providing for the issuance of revenue bonds of
the City of Fort Worth in the aggregate principal a2nount of Six T�Tillic�n
Dollars (�'i6,0002000.00), in addition to two installments aggregating
Four Million, Six Hundred and Fifty Thousand Dollars W419650,OOO.QO) of
revenue bonds heretofore issued and sold out of an authorized issue of
;eighteen idllion .Dollars ( IG18,000,000.00), to finance the i nprovement,
extension and enlargement of the City's Water and Sewer Systems; provid—
ing for the payment of such bonds solely from the revenues of such Sys—
tems; pledging a. eartion of such revenues to such payment; entering into
certain covenants and agreements with respect, to the operation of such
Systems and the application of tLe revenues derived therefrom; and repeal—
ing all ordinances -in conflict herewith." adopted by the City Council of
the City on February 28, 1951, to which ordinance reference is hereby
made for a more ,specific description of the revenues charged with and
pledged to the payment of the principal of and interest on the Bonds, and
for a statement of the nature and extent of such security, of the-rights
of the bearers of the Bonds and of the annexed interest coupons with
respect to such security-, and of the agreements of the City With respect
thereto, .and for a statement of the conditions upon which obligations on
a parity with this Bond may be issued,
The Bonds payable subsequent to Yarch 1, 1959, :*shall be redeem-
able prior to their 'respective maturities, at the option of the City, on
March 1, 1959, or on I-larch 1 of any year subsequent to 1959,-coon the fol-
lowing terms and conditions, viz.: (1) The Bonds called for redemption
on any Larch 1 must include all of the Bonds then outstanding or must be
the outstanding Bonds bearing the highest identifying m=bers (2) the re-
demption price shall be par and accrued interest to date of redemption,
plias a premium for each Bond redeemed, of the following respective amounts
in the following respective years- 1959, 425,00; 1960, w22.50; 1961"
320.00; 1962, $17.50; 19633 X15.00; 10/64, 412.50; 1965, . 10.00; 1966,
$7.50; 1967, $5.00; 19682 $2.50; and without prem.um if redeemed after
1968; and (3) at least thirty days prior to the date upon which such re-
demption is to be made, a notice of intention to male such redemption,
describing the Bonds to be redeemed, must be published at least once in
a newspaper printed in the Fnglish language and published and of general
circulation in the City of Fort Jorth, in the State of Texas, and must be
published at least once in a financial journal published in the Borough
of Manhattan, in the City and ,State of 11ew York,
Each successive holder of this Bond, and each successive holder
of each of the coupons hereto attached, is conclusively presuied to fore-
go and renounce has equities in favor of subseoluent holders for value
without notice, and to agree that this Fond and each of the coupons here-
to attached may be negotiated by delivery- by any person having possession
thereof, howsoever such possession may have been acquired, and that any
holder who shall have taken this Bond or any of the coupons from any per-
son 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 bolder.
This Bond is issued pursuant to the Constitution and statutes of
the State of Texas, including particularly Articles 11.1.1 to 11.1`8, in-
clusive, of the 1925 Revised Civil Statutes of Texas, as amendedA and
pursuant to propositions authorizing the encumbering of the ?roorae de-
rived by the City from the operation of the Cityl s Water System and the
City's Sewer System to provide for the payment, of the 418,,000,000,.00
principal amount of bonds (of Vnich the 6pOOO2000.00 principal amount
of Series 80 Bonds above described are a part), adopted by a majorit
of the resident, qualified electors of the City owning taxable property
in the City, and who had duly rendered the same for taxation, voting at
an election held for that purpose on January 25, 1949, and pursuant to
the above mentioned ordinance. All acts, conditions and thins required
by the Constitution or statutes of the State of Texas to exist, be per-
formed or happen precedent to or in the issuance of this Bond exist,,
have been performed and have happened; and the amount of this Bond, to-
gether with all other indebtedness of the City, does not exceed any limit
prescribed by the Constitution or statutes of said State
IST 1"JI-`1N SS 14HERECF, the City has caused this Bond to be signed
by its Mayor and attested by its City Secretary, and has caused the seal
of the City to be hereunto affixed or impressed hereon., and coupons for
the interest payable prior to or at the maturity of this Bond., bearing
the facsimile signatures of said Mayor and City Secretary, to be attached
hereto, all as of. the first day of March, 1951.
CITY OF FORT ATO TH, TE' as
BY
Mayor
ATTEST:
CRT'e" retary
(Form of coupons representing interest parable
on or before March 1, 1959)
The Cita of Fort Worth, Texas, will pay to bearer,
solely from those certain revenues referred to in the Band.
On the
hereinafter mentioned, at the principal office of the Cen- first 'day of
tral Hanover Bank & Trust Company, in the City of New York, Sept., 19
Marcia,
New -York, the sura. of Dollars
( ), being interest then due on its 1,,,ater and. Sewer
SERIES ES SO
Revenue Bond, Series 80, dated March 1, 1951. The holder
hereof.shall never have the right to demand payment of" BOND NO
this obligation out of any funds raised or to be raised
by taxation,
Mayor
ATTEST:
City Secretary
(Form of coupons representing interest payable
subsequent to March 1, 1959)
Unless the Bond hereinafter mentioned shall have
been called for previous redemption and payment thereof
mads or duly provided for, the City of Fort Worth, Texas,
will pay to bearer, solely from those certain revenues On the
first day of
referred to in the Bond hereinafter mentioned, at the
Sept., 19_
principal office of the Central Hanover Bank & Trust March,
Company, in the City of New York,, New York, the sum of NO . � — $
Dollars {$ }, SERIES 80
being interest then due on its Water and Sewer Revenue BOND NO®
Bond, Series 805 dated March 1, 1951. The holder hereof
shall -never have the right to demand payment of this
obligation out of any funds raised or to be raised by
taxation.
Mayor
ATTEST:
'City Secretary
(Form of Comptrollerts Certificate)
OFFICE OF CO?,T'TROLLER
STATE OF TEXAS
I HEREBY CERTIFY that there is on file and of record in my office
a certificate of the Attorney General of the State of Texas to the ef-
fect that this bond has been examined by hire as required by law, and
that he finds that it has been issued in conformity with the Constitu9-
tion and laws of the State of Texas and the Charters of said Catera and
that it is a valid and binding special obligations of said City of Fort
Worth, Texas, payable from the revenues pledged to its payment by and
in the ordinance authorizing same, and said bond has this day been regis-
tered by
egis-tered'by me.
I%'I`NESS my hand and seal of office at Austin., Texas, this the
day of , A* Do 19
Comptroller of-Public Aecou7 is
of the State of Texas