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HomeMy WebLinkAboutOrdinance 88231 r ; r tig T s A t w ORDINANCE NO 25 ~~~ w.~ AN ORDINANCE PROVIDING FOR THE ISSUANCE OF WATER AND SEWER REVENUE BONDS OF THE CITY OF FORT WORTH IN THE AGGREGATE PRINCIPAL AMOUNT OF FOURTEEN MILLION DOLLARS ($14,000,000 00) TO BE ON A PARITY WITH CERTAIN OUT- STANDING BONDS OF THE CITY TO FINANCE THE IMPROVEMENT AND EXTENSION OF THE CITY'S COMBINED WATER AND SEWER SYSTEMS; PROVIDING FOR THE PAYMENT OF SUCH BONDS SOLELY FROM THE REVENUES OF THE CITi''S COMBINED WATER AND SEWER 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 REVENUES DERIVED THEREFROM, AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH WHEREAS, the City of Fort Worth (hereinafter referred to as City) has established, and for many years has main- tained and operated, and is now maintaining and operating its combined water and sewer systems (hereinafter referred to as the City Water and Sewer Systems) used or useful to obtain a supply of water for said City and its inhabitants to conserve, treat and dispose of such water, and collect, treat and dispose of sewage and waste, and WHEREAS, revenue bonds, each payable as to principal and interest and equally secured by a first lien on and pledge of the revenues of the City Water and Sewer Systems, after deduction of reasonable expenses of system operation and maintenance, have been heretofore authorized, issued and sold pursuant to ordinances duly passed and enacted by the City Council of the City of Fort Worth and in accordance with applicable provisions of the general laws of the State of Texas; and WHEREAS, each of the ordinances authorizing the pre- viously issued series of revenue bonds now outstanding provide certain conditions precedent to the City's right to issue further bonds on a parity therewith; and WHEREAS, upon due investigation the City Council has affirmatively found and concluded that all such conditions precedent to the issuance of the bonds herein authorized have been met and satisfied; and r ~ c , WHEREAS, it is deemed wise and expedient by the City Council of said City, in the exercise of the discretion re- posed in it by law, in particular Articles 1111 through 1118, V A T C S that the bonds herein authorized be issued and sold, in addition to the bonds heretofore issued and sold NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS ARTICLE I AUTHORIZATION AND DESCRIPTION OF BONDS Section 101 Bonds of the City shall be issued in the aggregate principal amount of Fourteen Million Dollars ($14,000,000 00) for the purpose of making permanent city improvements by improving and extending the City's combined water and sewer systems All of such bonds (hereinafter referred to as the "Bonds") shall constitute a single issue to be known as Water and Sewer Revenue Bonds, Series 114 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 holder or holders of 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, including particularly Articles 1111 to 1118, inclusive, of the 1925 Revised Civil Statutes of Texas, as amended Section 103 The Bonds shall be dated June 1, 1983, shall be in the denomination of Five Thousand Dollars ($5,000 00) each, shall be numbered from one (1) to two thousand eight hundred (2,800), both inclusive, and shall mature serially on March 1st of each year as follows YEAR AMOUNT YEAR AMOUNT 1985 300,000 1995 $ 600,000 .1986 300,000 1996 700,000 1987 300,000 1997 800,000 1988 400,000 1998 800,000 1989 400,000 1999 900,000 1990 400,000 2000 1,000,000 1991 500,000 2001 1,100,000 1992 500,000 2002 1,200,000 1993 500,000 2003 1,300,000 1994 600,000 2004 1,400,000 2 T fi r The Bonds shall be payable, with respect to both principal and interest, at the principal office of the Manufacturers Hanover Trust Company, New York, New York, in lawful money of the United States of America Section 104 The Bonds shall bear interest from their date at the rates per annum as follows maturities 1985 i~ 5~ % maturities 1995 ~ J`~(~ maturities 1986 % maturities 1996 ~~% maturities 1987 ~ (~, g'0 % maturities 1997 $.7~ maturities 1988 ~~~% maturities 1998 ~'.$ 7 maturities 1989 ~0 % maturities 1999 _ maturities 1990 ~O.S~ % maturities 2000 ~ o maturities 1991 ~•S0 % maturities 2001 =~ ~ maturities 1992 ~n~~% maturities. 2002 q Q2% maturities 1993 ~1~% maturities 2003 R 5n maturities 1994 _ ~~% maturities 2004 evidenced by coupons appertaining to each of the Bonds, payable March 1, 1984, and semiannually thereafter on Sep- tember 1 and March 1 of each year until the principal amount thereof shall be paid Section 105 The Bonds shall be payable to bearer, without privilege of registration Each of the Bonds shall be signed by the facsimile signature of the Mayor, approved as to form and legality by the facsimile signature of the City Attorney and attested by the facsimile signature of the City Secretary, and the corporate seal of the City of Fort Worth, Texas, shall be affixed to, printed, lithographed 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 Such facsimile signatures shall have the same effect as if manually placed on said Bonds and coupons Each successive holder of each 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 holders 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 acquired 3 absolute title thereto, free from any defense enforceable r 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 permitted (FORM OF BOND) NO $5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF TARRANT CITY OF FORT WORTH WATER AND SEWER REVENUE BOND SERIES 114 The City of Fort Worth (hereinafter called the City), a municipal corporation of the State of Texas, for value received, hereby promises to pay, solely from the revenues hereinafter referred to, to the bearer on March 1, the principal sum of FIVE THOUSAND DOLLARS ($5,000), and to pay, solely from said revenues, interest on said principal sum from the date of this Bond, at the rate of per centum ( %) per annum, semiannually, the first interest payment date being March 1, 1984, and each year thereafter on September 1 and March 1, until the City's obligation with respect to the payment of said principal sum shall be paid Interest payable at or before the date of maturity of this Bond will be paid only upon presentation and surrender of the annexed interest coupons as they severally mature Payment of the principal of and interest on this Bond, without collection charges to the owner or holder thereof, will be made at the principal office of the Manufacturers Hanover Trust Company in the Borough of Manhattan, City and State of New York, in lawful money of the United ,States of America 4 r ~ This Bond is one of a duly authorized issue of bonds of the Cit1~, known as its Water and Sewer Revenue Bonds, Series 114 (hereinafter called the "Bonds"), in the aggregate principal amount of Fourteen Million Dollars ($14,000,000.00), dated June 1, 1983, in the der.omination_ of Five Thousand Dollars ($5,000.00) each, and numbered from one (1} to two thousand eia,ht hundred (2,800). The Bonds are issued for making permanent city improvements by improving and extend- ing the City's combined water and sewer systems, and are payable from the Net Revenues derived by the City from the operation of the City's Water and Sewer Systems.- 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 pursuant to an ordinance passed by the City Council of the City on May 18, 1983, 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 of this issue, together with the revenue bonds previously issued, are secured equally and ratably by a pledge of the net revenues of such Systems. The Bonds maturing on or after March 1, 1994 are subject to redemption prior to their scheduled maturities in whole or in part, at the option of the City, on March 1, 1993, or on any interest payment date thereafter, for the principal amount thereof and accrued interest thereon to the date fixed for redemption. At least thirty days prior to the date fixed for any such redemption said City shall cause a written notice of such redemption to be published at least once in a financial publication published in The City of New 5 ~ L York, New York By the date fixed for any such redemption due provision shall be made with the paying agent for the payment of the principal amount of the bonds which are to be so redeemed and accrued interest thereon to the date fixed for redemption If such written notice of redemption is published and if due provision for such payment is made, all as provided above, the bonds which are to be so redeemed thereby automatically shall be redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right of the bearer to receive the redemption price from the paying agent out of the funds provided for such payment Each successive holder of this Bond, and each success- ive holder of each of the coupons hereto attached, is conclusively presumed to forego and renounce his equities in in favor of subsequent holders for value without notice, and to agree that this Bond and each of the coupons hereto 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 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 to any .such prior holder This Bond is issued pursuant to the Constitution and statutes of the State of Texas, including particularly Articles 1111 to 1118, inclusive, of the 1925 Revised Civil Statutes of Texas, as amended All acts, conditions and things required by the Constitution or statutes of the State of Texas to exist, be performed or happen precedent to or in the issuance of this Bond 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 6 s II . ~ r limit prescribed by the Constitution or statutes of said State In witness whereof, this Bond has been signed by the imprinted or lithographed facsimile signature of the Mayor of said City, attested by the imprinted or lithographed facsimile signature of the City Secretary, and approved as to form and legality by the imprinted or lithographed facsimile signature of the City Attorney, and the interest coupons attached hereto have been signed by the imprinted or lithographed facsimile signatures of the Mayor and City Secretary, and the official seal of said City has been duly affixed to, printed, lithographed or impressed on this Bond, which Bond is dated June 1, 1983 CITY OF FORT WORTH, TEXAS BY Mayor ATTEST City Secretary APPROVED AS TO FORM AND LEGALITY City Attorney The form of coupons attached to said Bonds shall be in substantially the following form (FORM OF INTEREST COUPON) NO On the 1st day of unless the Bond hereinafter mentioned shall have been called for previous redemption and payment thereof made or duly provided for, the City of Fort Worth, Texas, will pay to bearer, solely from those certain revenues referred to in the Borid herein- after mentioned, at the principal office of the Manufac- turers Hanover Trust Company, in The City of New York, New York, the amount specified hereon, being interest then due on its Water and Sewer Revenue Bonds, Series 114, dated June 1, 1983 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. Bond No 7 , 1' ATTEST CITY OF FORT WORTH, TEXAS BY Mayor City Secretary (FORM OF COMPTROLLER'S CERTIFICATE) OFFICE OF COMPTROLLER OF THE STATE OF TEXAS REGISTER NO 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 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 pay- ment by and in the ordinance authorizing same, and said bond has this day been registered by me Witness my hand and seal of office at Austin, Texas, this day of 1983 Comptroller of Public Accounts of the State of Texas Section 107 The Bonds herein authorized shall be pre- sented to the Attorney General of the State of Texas for examination and approval and to the Comptroller of Public Accounts for registration Upon registration of said Bonds, the Comptroller of Public Accounts (or a deputy designated in writing to act for the Comptroller) shall manually sign the Comptroller's certificate of registration prescribed herein to be printed on the back of each Bond, and the seal of the Comptroller shall be impressed, or printed, or litho- graphed on each of said Bonds Section 108 The Mayor and City Secretary are hereby authorized to execute said Bonds and to affix, impress, print or lithograph thereon the corporate seal of the City 8 s• The City Treasurer is hereby authorized to deliver said Bonds to the purchaser or purchasers to whom they may be sold by the City Council upon receipt of the purchase price to be paid by such purchaser or purchasers. Section 109. In addition to the BondG authorized by this ordinance, the City may issue bonds (hereinafter re- ferred to as Additional Bonds) payable from the Debt Service Fund hereinafter referred to and secured, equally and rata- bly 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 making ary payment reguired by Sections 404, 405 or 406 of this ordinance; (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 immediately preceding the time of issuance of the Additional Bonds shall be r_ot 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 then outstanding (including Issued Bonds as hereinafter defined) and the Additional Bonds about to be issued; provided that at such time as none of the Issued Bonds issued. prior to the issuance of the Series 111 (dated July 1, 1979) Bonds is outstanding, the requirement of this paragraph (c) shall be that the amount of the Net Revenues for the last preceding fiscal year immediately preceding the issuance of the Additional Bonds shall be not less than 150 of the average annual principal and interest payable in the future fiscal years with respect to the Bonds and Additional Bonds then outstanding (including Issued Bonds as hereinafter defined) and the Additional Bonds about to be issued; and (d) That the principal of the Additional Bonds shall be made payable on March 1 of the years in which such principal 9 is payable, and. that the interest on the Additional Bonds shall be made payable semiannually on March 1 and September 1 All Bonds issued in accordance with the provisions of this Section 109, as well as all of those issued pursuant to propositions heretofore or hereafter adopted by a majority of the resident, qualified electors of the City voting at an election held for that purpose, whether issued by virtue of this ordinance or by virtue of earlier or subsequent ordi- nances or resolutions, 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 indebt- edness, within the meaning of Article 1113 of the 1925 Revised Statutes of Texas, as amended ARTICLE II REDEMPTION OF BONDS BEFORE MATURITY Section 201 The .Bonds maturing on or after March 1, 1994 are subject to redemption prior to their scheduled maturities in whole or in part, at the option of the City, on March 1, 1993, or on any interest payment date thereafter, for the principal amount thereof and accrued interest thereon to the date fixed for redemption At least thirty days prior to the date fixed for any such redemption said City shall cause a written notice of such redemption to be published at least once in a financial publication pub- lished in The City of New York, New York By the date fixed for any such redemption due provision shall be made with the paying agent for the payment of the principal amount of the bonds which are to be so redeemed and accrued interest thereon to the date fixed for redemption Section 202 Nothing contained in this ordinance shall be construed to limit or affect the right of the City to purchase, with any moneys lawfully available for such pur- pose, any of the outstanding Bonds at a price less than the redemption price hereinbefore prescribed 10 Section 203 If such written notice of redemption is published and if due provision for such payment is made, all as provided above, the bonds which are to be so redeemed thereby automatically shall be redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right of the bearer to receive the redemption price from the paying agent out of the funds provided for such payment 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) All 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 Construc- tion Fund the City shall apply the sum of $6,000,000 00 to the payment of the cost of improving and extending the City Water System and $8,000,000 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 ARTICLE IV APPLICATION OF REVENUES 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 City and used or useful in the 11 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 Systems; (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, repairs and extensions necessary to enable the Systems to render efficient service, and every proper item of expense, but such repairs and extensions shall be limited to those which in the judgment of the City Council are necessary to keep the Systems in operation and to render adequate service to the City and the inhabitants thereof, or necessary to meet some physical accident or condition which would otherwise impair such Systems and the Revenues thereof; (3) the term "Revenues" shall mean the gross revenue and income derived by the City from the operation of the Systems; (4) the term "Net Revenues" shall mean the amount by which the aggregate of the Revenues received by the City in any year shall exceed the amount required to pay the Operating Expenses of such year; (5) the term "Issued Bonds" shall mean the Water and Sewer Revenue Bonds which have been heretofore issued by the City pursuant to the authority given by the propositions adopted at said elections held in the City on January 25, 1949, January 26, 1954, January 31, 1956, October 19, 1965 and February 7, 1978; and (6) the term "First Issue Bond Ordinance" shall mean the ordinance adopted by the City Council on April 20, 1949 authorizing the issuance of the initial issue of Issued Bonds Section 402 All Revenues (as defined in Section 401 of this ordinance) received or collected by the City or any of its officers or agencies shall be deposited by the City Treasurer, as promptly as possible after their receipt, in a 12 bank or banks authorized to act as depositary or depositar- ies of the City, and shall be held by such bank or banks in a special fund or account to be known as the "Water and Sewer Operating Fund" (hereinafter referred to as the Operating Fund), established by the First Issue Bond Ordi- nance Section 403 Subject only (1) to the right of the City tc pay from the Operating Fund moneys required for Operating Expenses as provided in Section 404 of this ordinance and (2) to the right of the City to expend moneys in the Opera- ting Fund in accordance with Section 406 of this ordinance, 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 ordi- nance), and this pledge shall be valid and binding from and after the earliest date (hereinafter referred to as the Issuance Date) upon which any bonds are issued pursuant to this ordinance Revenues, as received by the City, shall immediately be 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, or contract, or otherwise against the City, irrespective of whether such parties have notice of such lien Section 404 From the Operating Fund the City shall first pay Operating Expenses as such expenses become due and payable Section 405 (1) The Special Fund known as the "Water and Sewer Debt Service Fund" (hereinafter referred to as "Debt Service Fund") established by the First Issue Bond Ordinance shall be continued and maintained, and such Special Fund shall be divided into a "Current Account" and a "Reserve Account" as provided in the First Issue Bond Ordinance All moneys paid into such accounts as 13 hereinafter provided and as provided 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 Fund after payment of Operating Expenses then due and payable, pay (a) Into the Current Account of the Debt Service Fund (1) An amount equal to one-sixth (1/6) of the interest payable on the Bonds (including Issued Bonds and Additional Bonds) then outstanding on the interest payment date next ensuing, less the amount, if any, received as accrued interest from the purchasers of the Bonds and deposited to the credit of the Current Account and available for the purpose of paying said interest; and (2) An amount equal to one-twelfth (1/12)- of the principal of the Bonds (including Issued Bonds and Additional Bonds) then outstanding that will mature on the March 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 Account shall be as much as the aggregate amount of principal and interest that will become due and payable in the twelve months' period beginning on the March 2 next ensuing on the Bonds (including Issued Bonds and Additional Bonds) then outstanding, no payment need be made into the Reserve Account; and provided, further that no greater payment need be made into the Reserve Account than shall be neces- sary to make the amount in the Reserve Account equal to said aggregate amount of principal and interest (3) In addition to the amount required by the fore- going provisions of this section to be paid into the Current Account of the Debt Service Fund on or before the last day of the month in which any Bonds or Additional Bonds are delivered, the City shall pay into said account, on or be- fore 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 14 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 Bonds had been delivered one year before the principal date next ensuing (4) If for any reason the moneys in the Current Account or the Reserve Account of the Debt Service Fund, and actually available for the purpose of paying the principal 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 by the foregoing provisions of this section to be paid into such account up to such time, after deduct- ing, 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 account in each month thereafter until all such deficiencies shall have been made up (5) Whenever and for so long as the moneys in the Debt Service Fund are at least equal to the aggregate principal amount 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 The City Council has ascertained and hereby determines that there is more than twenty-five percentum of 15 the total amount of the Operating Expenses of the System for the twelve months' period ending on September 30, 1982 In the event that the moneys held in said account shall here- after be less than twenty-five percentum of the total amount of the Operating Expenses 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, March, June and September in each year, after making the payments for Operating Expenses required by Section 404 and the payments into the Current Account and Reserve 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 Revenues remaining in the Operating Fund, the sum of $29,000 or such larger sum as may hereafter be prescribed by the City Council, until the moneys held in the Operating Reserve Account shall be equal to twenty-five percentum of the total amount of the Operating Expenses of the Systems for the twelve months' 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 which event such further payments shall be made from time to time into said account as may be necessary in order to make the moneys therein equal to said total amount Moneys in said account may be used by the City for the purpose of making 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 Expenses required by Section 404 and the payments 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 lawful purpose Section 407 Moneys 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 principal of and 16. interest on the Bonds or Issued Bonds or Additional Bonds as such principal and interest fall due 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 with the payments mentioned in this section Section 408 Moneys on deposit to the credit of the Reserve Account of the Debt Service Fund or the Operation Reserve Account of the Operating Fund may, in the discretion of the City Council of the City, be invested in direct obli- gations 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 accru- ing 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 payment or transfer from such account ARTICLE 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 this ordinance and 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 duly observe any and all covenants, undertak- ings, stipulations and provisions contained herein or in the Bonds at any time outstanding hereunder Except as in this ordinance otherwise provided, such principal and interest 17 are payable solely from the Revenues derived from the Systems, which revenues are hereby pledged to the payment thereof in the manner and to the extent hereinabove particu- larly 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 maintain the Systems in good order and condition and will continuously 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 furnished by the Systems, so that the Reve- nues 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 which may become a charge upon the revenues of the Systems w Section 504 The City covenants tht 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 belong- ing to 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 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 18 5 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 ordi- nance 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 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 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 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 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 cove- nants and agrees that, so long as the Bonds or any of them are outstanding, it will not grant a franchise for the oper- ation 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 furnished by the Systems shall be equal and uniform, and no free service shall be allowed except for 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, payable from the Debt Service Fund, except in the manner and subject to the limitations prescribed by Section 109 of this ordinance 19 Section 509 Nothing contained in this ordinance shall be construed 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 City covenants that it will keep proper books cf account (separate from all other records and accounts) in which full and correct entries shall be made of all transactions relating to the Systems 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 will cause to be prepared a statement, certified by a competent and independent certified public accountant, showing in reason- able detail the revenues and expenses of the Systems during such fiscal 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 fiscal year in each of the separate funds or accounts mentioned in this ordinance, 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 pertaining to the 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 mailed to each of the original purchasers of the Bonds or the Additional Bonds who shall have requested it Section 511 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 Fund or the Operating Fund (other than money inves- ted. as hereinbefore provided) shall be adequately secured by United States Government bonds or other marketable securities elegible 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 States Government 20 :r .. i deposits, or as may be required by the applicable laws of the State of Texas ARTICLE VI MISCELLANEOUS PROVISIONS Section 601 In consideration of the purchase and ac- ceptance of the Bonds authorized to be issued hereunder by those who shall hold the same from time to time, this ordi- nance 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, protection and security of the holders of any and all such Bonds and coupons, all of which, regardless of the time or times of their issue or maturity, shall be of equal rank without preference, priority or distinction of any of the Bonds or coupons over any other thereof except as ex- pressly provided herein Section 602 Except as herein otherwise expressly pro- vided, 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 ordi- nance, or any covenant, condition or stipulation herein, this ordinance 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 the Bonds Section 603 In the event that any one or more of the provisions of this ordinance or propositions referred to herein shall for any reason be held to be illegal or invalid by a court of competent jurisdiction or be rendered inef- fective by Act of the Texas Legislature, such illegal, invalid or ineffective provision or proposition shall not affect any other provision of or proposition referred to in this ordinance, and this ordinance and the Bonds issued pursuant thereto shall be construed and enforced as if such 21 t illegal, invalid or ineffective provision or proposition had not been contained or referred to in this ordinance. Section 604. The City covenants to and with the pur- chasers of the Bonds that it will make no use of the proceeds of the Bonds at any time throughout the term of this issue of bonds which, if such use had been reasonably expected on the date of delivery of the Bonds to and payment for the Bonds by the purchasers, would have caused the Bonds to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations or rulings pertaining thereto; and by this covenant the City is obligated to comply with the requirements of the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City further covenants that the proceeds of the Bonds vaill not otherwise be used, directly or indirectly, so as to cause all or any part of the Bonds to be or become arbitrage bonds within the meaning of the aforesaid Section 103 (c) or any regulations or rulings pertaining thereto. Section 605. That said Series 114 Bonds are(~hereby sold and. shall be delivered to ~~ l~~if~,r I1 P,~.1;I~Lf~ ~<~S~ L fox the principal amount thereof and accrued interest to the date of delivery~~ Vi~~Z3 b~ Section 606. All ordinances and resolutions in con- flict herewith are hereby repealed insofar as they conflict herewith. Section 607. This ordinance shall take effect and be in full force and effect from and after the date of its passage. Section 608. That the City hereby confirms that it published notice of intention to issue the Series 114 Bonds once a week for two consecutive weeks in a newspaper of general circulation published in the City, with the first 22 '~ publication of said notice occurring at least fourteen days prior to the date hereof. Section 609. It is hereby officially found and deter- mined that the meeting at which this ordinance was passed was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Vernon's Texas Civil Statutes, Article 6252-17, as amended. Piayor of the City of Fort Worth, Texas ATTEST: a.ty ecretary of the City of Fort Worth, Texas APPROVED AS TO FORM AND LEGALT_TY: City Attorney of~~the City of Fort Worth, Texas ~. .. 23 :, k h F} r~ THE STATE OF TEXAS COUNTY OF TARRANT CITY OF FORT WORTH I, Ruth Alexander, City Secretary of the City of Fort Worth, in the State of Texas, do hereby certify that I have compared the attached and foregoing excerpt from the minutes of the regular, open, public meeting of the City Council of the City of Fort Worth, Texas, and of Ordinance No which was duly passed at said meeting, and that said copy is a true and correct copy of said excerpt and the whole of said ordinance In testimony whereof, I have set my hand and have here- unto affixed the seal of said City of Fort Worth, this 18th day of May, 1983 _ -- ,~ - P ~ .u/ ^~.,r' ~ _ `~~r `(SEAL) .,~ ~~ c ' ~" ~` ^, ~ ,. _+ ..,, ~. ~ k ^;, r„ _• .,. „~- ity Secretary of the City of Fort Worth, Texas II '~ WASTER FILE 1 -' CITY MANAGER l~~j ((,~/ ®~ R•RAItSPOR y1ATER ACCOUNTING•2 ~i~a~ ~~' J~~~'~ ~~s~~°~~,, ~~.~~~ qq ATQO~~U6LIC ~0lORKS• REFERENCE NUMBER SUBJECT Sale of $14.,.000,000' Water and PAGE. Sewer Revenue. Bonds 2 5/18/83 G-5630 I or.__.__ DMINISTRA7~ON-4 Bids for $14;000,000 Water and-.Sewer Revenue Bonds were received Wednesday, 83; at 10:00 A. M. May 18, 19 A summary of the average annual effective interest _ _ rates for the bids received is shown below: 1,~ Dean Witter. Reynolds Inc. 8.915482% 2. The First Boston Corp oration E.F. Hutton & Co., Inc. 8.9231% 3, Salomon Brothers. Inc & Associates 8..9645% 4. Merrill, Lynch. White. Weld Capital Markets Group 8.9738% 5. Prudential Bache Securities Inca 9.0400% 6 Underwood', Neuhaus- & Co., Inc.. -Mgr.. 9.027888% Recommendation It is recommended that: 1) The bonds be sold to the bidder offering the Towest interest cost, Dean Witter Reynolds, Inc., at an average. net effective rate. of 8.915482%; and, 2) The City Council adopt- Ordinance No ._ 8823sauthorizing the. issuance of $1.4,000,.000 in Water and Sewer Revenue Bonds.. APPROVED BYi `~ CITY COUNCIL MCM:.j c MAY lE 1°J83 Attachment City Secz4tazy of tke 'CatY, alf 8~; ~~le "~ SUBMITTED FOR'THE CITY MANAGER'S ~ ~~ DISPOSITION BY COUNCIL: PROCESSED BY ~ t7FFICE BY 7 •• _ APPROVED ORIGINATING Tlld Bailiff ~ OTHER (DESCRIBE) . DEPARTMENT HEAD• CITY SECRETAR`r i NTACT fIONAj,uf~FQjta~Ill~f EXt. s185ADOPTf D RDiNANC E (V0. ~ ~} ~ ~ -DATE CO .