HomeMy WebLinkAboutOrdinance 2674 ORDINANCE NO.
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF HE'VENUE BONDS
OF THE CITY OF FORT WORTH IN THE AGGREGATE PRINCIPAL
AMOUNT OF TWO MILLION DOLLARS ($2,000,000.00) TO FINA14CE.
THE IMPROVEE O!T, EXTENSION AND ENLARGE1021T OF THE CITYTS
WATER AND Sri^7ER SYSTEMS; PROVIDING FOR THE PAYMENT OF
SUCH BONDS SOLELY FROM THE REVNZJUES OF SUCH SYSTEMS;
PLEDGING A PORTION OF SUCH REVENUES TO SUCH PAYMENT; EN-
TERING INTO CERTAIN COVENANTS AND AGR&U4ENTS WITH RESPECT
TO THE OPERATION OF SUCH SYSTEMS AND THa APPLICATION OF
THE REVENUES DERIVED THEREFROM; AND REPEALING ALL ORDI-
NANCES IN ODNFLICT HEREWITH.
WHERF,AS, the City of Fort Worth (hereinafter referred to as City)
has established, and for many years has maintained and operated, and is
now maintaining and operating, a system (hereinafter referred to as the
City Water System) used or useful to obtain a supply of water for said
City and its inhabitants and to conserve, treat and dispose of such water,
and also a system (hereinafter referred to as the City Sewer System) used
or useful for the collection, treatment and disposal of sewage and waste;
and,
WHEREAS, the City Council has determined that it is necessary to im-
prove, extend and enlarge both the City Water System and the City Sewer
System (which systems are sometimes hereinafter referred to collectively
as the Systems) and that it will be necessary to expend at this time not
less than $1,7OO,000.00 for the improvement, extension and enlargement
of the City Water System and not less than $300,000.00 for the improvement,
extension and enlargement of the City Sewer System, and the City Council
deems it advisable to raise the sums required for such purposes by the
issuance of bonds, as hereinafter provided, which shall not be a debt of
the City, but shall be payable solely from the net income derived from the
operation of the Systems and shall be secured by a pledge of such net in-
come; and,
Y•IHEREAS, the City has not mortgaged or encumbered either of the Sys-
tems or the income derived therefrom to secure or provide for the payment
of any bonds, warrants or other obligations or indebtedness of the City
now outstanding or unpaid, and the bonds authorized by this ordinance will
be a first charge upon the net income of the Systems; and,
WHEREAS, at an election duly called and held in the City on January
25, 1949, a majority of the qualified voters of the City voted in favor
of each of the following two propositions:
PROPOSITION NO. 1
Shall the City of Fort Worth, Texas, through its City Council,
issue its negotiable coupon bonds in the principal sum of Twelve
Million, Four Hundred Thousand Dollars ($12,400,000.00) for the
purpose of improving, extending and enlarging the Waterworks
System of said City, *aid bonds to be issued at one time or in
installments from time to time as the City Council shall de-
termine, the bonds of each installment being payable serially
as may be determined'by the City Council, so that the last ma-
taring bonds shall become payable within forty (40) years from
the date thereof, and bearing interest at a rate not to exceed .
four per cent (4%) per annum from the date thereof, payable
semi-annually, and to provide for the payment of principal and
interest on said bonds by pledging the net revenues from the
operation of the Waterworks System of said City, or in the
event that the City Council be authorized to issue Sewer System
revenue bonds as submitted in Proposition No. 2, to be secured
additionally by a pledge of the net revenues from the operation
of said Sewer System?
PROPOSITION NO. 2
Shall the City of Fort Worth, Texas, through its City Coun-
cil, issue its negotiable coupon bonds in the principal sum
of Five Million, Six Hundred Thousand Dollars (05,600,000.00)
for the purpose of improving, extending and enlarging the ex-
isting Sewer System of said City, said bonds to be issued at
one time or in installments from time to time as the City Coun-
cil shall determine, the bonds of each installment being pay-
able serially as may be q,etermined by the City Council, so
that the last maturing bonds shall become payable within forty
(40) years from the date thereof, and bearing interest at a
rate not to exceed four per cent (4%) per annum from the date
thereof, payable semi-annually, and to provide for the payment
of principal and interest on said bonds by pledging the net
revenues from the operation of the Sewer System of said City,
or in the event that the City Council be authorized to issue
Waterworks System revenue bonds as submitted in Proposition
No. 1, to be secured additionally by a pledge of the net reve-
nues from the operation of said Waterworks System?;
and,
WHEREAS, the bonds authorized by this ordinance are a part of the
bonds of the aggregate principal amount of $18,000,000.00 referred to in
such propositions; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS:
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ARTICLE I
AUTHORIZATION AND DESCRIPTION OF BONDS
Section 101. Bonds of the City, being a part of the bonds referred
to in Proposition No. 1 set forth in the preamble of this ordinance, shall
be isaued'at this time in the aggregate principal amount of $1,700,000.00
for the purpose of improving, extending and enlarging the City Water Sys—
tem, and bonds of the City, being a part of the bonds referred to in
Proposition No. 2 set forth in the preamble of this ordinance, shall be
issued at this time in the aggregate principal amount of $300,000.00 for
the purpose of improving, extending and enlarging the City'Sewer System.
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 80,
The Bonds shall be payable solely from the Net Revenues of the Systems,
as defined 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
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 two thousand in number, numbered•
from 1 to 2,000, inclusive, and of the denomination of $1,000.00 each,
shall be dated March 1, 1949, and shall mature serially in numerical
order on March lst of each year as follows:
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Year Amount Bond Numbers
1951 5,000 1 to 5
1952 10,000 6 to 15
1953 20,000 16 to 35
1954 30,000 36 to 65
1955 40,000 66 to 105
1956 50,000 106 to 155
1957 60,000 156 to 215
1958 70,000 216 to 285
1959 80,000 286 to 365
1960 90,000 366 to 455
1961 95,000 456 to 550
196 95,E 646 to 740
1963 95,
1964 100,000 741 to 840
1965 105,000 841 to 945
1966 : 105,000 946 to 1,050
1967 110,000 1,051 to'1,160
1968 110,000 1,161 to 1,270
1969 115,000 1,271 to 1,385
1970 115,000 1,386 to 1,500
1971 120,000 1,501 to 1,620
1972 125,000 1,621 to 1,745
1973 125,000 1,746 to 1,870
1974 130,000 1,871 to 2,000
The interest on each Bond shall be payable semi-annually on March 1 and
September 1 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 & Trpst 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 mature sub-
sequent to March 1, 1959, shall be redeemable prior to their respective
maturities, as provided in Article II of this ordinance.
Section 104. The Bonds numbered from 1 to 245 , inclusive, shall
bear interest at the rate of two and one-quarter
per eentum ( A �) per annum, and the Bonds numbered from
946 to 2,000, inclusive, shall bear interest at the rate of
two and one-half per eentum ( 2} per
annume
Section 105. The Bonds shall be payable to bearer, without privilege
of registration. They shall be signed by the Mayor of the City and shall
be attested by the City Secretary. The corporate seal of the City shall
be affixed to or impressed upon each Bond. The interest coupons represent—
ing interest payable on the Bonds shall bear the facsimile signatures of
the Mayor and City Secretary. 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 sub—
sequent 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 absolute
title thereto, free from any defenses enforceable against any prior holder
and free from all equities and claims of ownership of any such prior holder.
Section 106. The Bonds, the interest coupons to be attached to the
Bonds, and the certificate of the Comptroller of Public Accounts of the
State of Texas 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:
a
(Form of Bond)
No. No.
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF FORT WORTH
WATER AND SEWER RLVFTIUE BOND
SERIES 80
9$1,000 $1,000
The City of Fort Worth (hereinafter called the City), a municipal
corporation of the State of Texas, for value received, hereby promises
to pay, solely from the revenues hereinafter referred to, to the bearer
on March 1, 19 , the principal sum of ONE THOUSAND DOLLARS ($1,000),
and to pay, solely from said revenues, interest on said principal sum
from the date of this Bond, at the rate of
per centum ( 2) per annum, semi-annually on March 1 and Septem-
ber 1 of each year, until the City's obligation with respect to the pay-
meat of said principal sum shall be discharged. 'So much of said interest
as shall be payable'at or before the date of maturity of this Bond ey,-
pressed herein will be paid only upon presentation and surrender of the
annexed interest coupons as they severally mature, and so much of said in-
terest 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 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.
This Bond is one of a duly authorized issue of coupon bonds of the
City, known as its Water and Sewer Revenue Bonds, Series 80 (hereinafter
called the Bonds), limited to the aggregate principal amount of 52,000,-
000.00, dated March 1, 1949, maturing serially on March 1 in various years,
and numbered from 1 to 2,000, in the order of their maturity. The Bonds
are issued or to be issued for the improvement, extension and enlargement
of the City's Water System and the improvement, extension and enlargement
of the City's 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 "An ordinance providing for the issuance
of revenue bonds of the City of Fort Worth in the aggregate principal
amount of Two Million,Dollare ($2,000,000.00) 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 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," adopted by the City Council of the City
on April 20, 1949, to which ordinance reference is hereby made for a more
specific description of the revenues charged with and pledged to the pay-
ment of the principal of and interest on the Bonds, and for a statement
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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 se-
curity, 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 March 1, 1959, are redeemable prior
to their respective maturities, at the option of the City, on March 12
1959, or on March 1 of any year subsequent to 1959, upon the following
terms and conditions, viz.: (1) The Bonds called for redemption on any
"1
March 1 must include all of the Bonds then outstanding or must be the out-
standing Bonds bearing the highest identifying numbers; (2) the redemp-
tion price shall be par and accrued interest to date fixed for such re-
demption, plus a premium for each Bond redeemed, of the following respective
amounts in the following respective years: 1959, $37.50; 1960, $35.00;
1961, $32.50; 1962, 330.00; 1963, $27.50; 1964, $25.00; 1965, $22.50;
1966, $20.00; 1967, $17.50; 1968, $15.00; 1969, $12.50; 1970, 410.00;
1971, $7.50; 1972, $5.00; 1973, $2.50; and (3) at least thirty days prior
to the date upon which such, redemption is to be made, a notice of inten-
tion to make such redemption, describing the Bonds to be redeemed, must
be published at least once in a newspaper printed in the English language
and published and of general circulation in the City of Fort Worth, 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 New York,
Each successive holder of this Bond, and each successive holder of
each of the coupons hereto attached, is conclusively presumed to forego
and renounce his equities in favor of subsequent holders for value without
notice, and to agree that this Bond and each of the coupons hereto at-
tached may be negotiated by delivery by any person having possession there-
of, 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 of 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, and pursuant to.
propositions authorizing the encumbering of the income derived by the City
from the operation of the Cityts Water System and the Cityts Sewer System
to provide for the payment of the Bonds, adopted by a majority 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 elec-
tion held for that purpose on January 25, 1949, and pursuant to the above
mentioned ordinance. 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 iseuance 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 limit prescribed
by the Constitution or statutes of said State.
IN WITNESS WHEREDF, 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, 1949.
CITY OF FORT WORTH, TEXAS
BY
Mayor
ATTEST:
City Secretary
4'�
(Form of coupons representing interest payable
on or before March 1, 1959)
The City of Fort Worth, a municipal corporation
of the State of Texas, will pay to bearer, solely
from those certain revenues referred to in the Bond
hereinafter mentioned, at the principal office of
Central Hanover Bank & Trust Company, in the Borough On the
of Manhattan, City and State of New York, the sum first day of
of Dollars March, 19 _
September,
in such coin or currency of the
United States of America as at the time of payment $
N0.
thereof shall be legal tender for the payment of
SERIKS 80
public and private debts, being six months' in-
terest then due on its Water and Sewer Revenue Bondy No.
Series 80, dated March 1, 1949, and numbered r
The holder hereof shall never have the right to de-
mand payment of this obligation out of any funds
raised or to be raised by taxation.
e Mayor
ATTEST:
City Secretary
! C>
(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 there-
of made or duly provided for, the City of Fort Worth,
a municipal corporation of the State of Texas, will
pay to bearer, solely from those certain revenues
referred to in the Bond hereinafter mentioned, at On the
the principal office of Central Hanover Bank & Trust first day of
Company, in the Borough of Manhattan, City and State March, 19 _
September,
of New York, the sum of
Dollars in such coin or currency of -T---
NO.
the United States of America as at the time of pay-
SERIES BO
ment thereof shall be legal tender for the payment
No.
of public and private debts, being six months= In-
terest then due on its Water and Sewer Revenue Bond,
Series 80, dated March 1, 1949, and numbered .
The holder hereof shall never have the right to de-
mand payment of this obligation out of any funds
raised or to be raised by taxation.
f
Mayor
ATTEST:
City Secretary
!I
(Form of Comptrollers Certificate)
OFFICE OF COMPTROLLER Q
STATE OF TEXAS 0
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 him as required by law, and
that he finds that it has been issued in conformity with the Constitu—
tion and laws of the State of Texas and the Charter of said City, and
that it is a valid and binding special obligation of said City of Fort
Worth, Texas, payable from the revenues pledged to its payment by and
in the ordinance authorizing same, and said bond has this day been regis—
tered by me.
WITNESS my hand and seal of office at Austin, Texas, this the
day of , A. D. 19 •
Comptroller of Public Accounts
of the State of Texas
I`L
Section 107. After the Bonds have been executed by the Mayor and
City Secretary in accordance with their terms, they shall be presented
to the Attorney General of- the State of Texas for examination and ap-
proval. After 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. The 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 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 pur-
chaserse
Section 109. In addition to the Bonds authorized by this ordinance,
the City may issue bonds (hereinafter referred to as Additional Bonds)
payable from the Debt Service Fund created by this ordinance 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 condi-
tions:
(a) That the Additional Bonds shall be issued for the purpose of
improving, extending or enlarging the Systems;
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(b) That at the time the Additional Bonds.are issued, the City shall
not be in default in making any payment required by Section 404, 405 or
406 of this ordinance;
(c) That the amount of the average annual Net Revenues of the Systems
a
computed by dividing by two the Net Revenues for the two fiscal years im-
mediately preceding the time of issuance of the Additional Bonds shall be
not less than 150% of the maximum aggregate amount of principal and inter-
est payable in any future fiscal year with respect to the Bonds and Addi-
tional Bands then outstanding and the Additional Bonds about to be issued;
and
�t,
(d) That the principal of the Additional Bonds shall be made pay—
able on March 1 of the years in which such principal is payable, and that
the interest on the Additional Bonds shall be made payable semi—annually
on March 1 and September 1.
Provided, however, that with the exception of Additional Bonds to
be issued pursuant to the propositions set forth in the preamble of this
ordinance, adopted by the qualified voters of the City at an election
held on January 25, 1949, no Additional Bonds shall be issued unless and
until the City shall have been authorised by law to issue them. All
Bonds issued pursuant to said propositions, whether issued by virtue of
this ordinance or by virtue of subsequent ordinances 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
indebtedness, within the meaning of ArUele 1113 of the 1925 Revised
Statutes of Texas, as amended,
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ARTICLE II
REDEMPTION OF BONDS BEFORE MATURITY
Section 201. The Bonds payable subsequent to March 19 1959, 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, via.: (1) The Bonds called for
redemption on any March 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 to date of rem
demption, plus a premium for each Bond redeemed, of the following respec—
tive amounts in the following respective years: 1959, $37.50; 1960s
$35.00; 1961, $32.50;, 1962, $30.00; 1963, $27.50; 1964, $25.00; 196?,
622.50; 1966, $20.00; 1967, $17.50; 1968, $15900; 1969, $12.50; 1970,
$10.00; 1971, $7.50; 1972, $5.00; 1973, $2.50; 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,
must be published at least once in a newspaper printed in the English
language and published and of general circulation in the City of Fort
Worth, 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 New York. Such option may be exercised by ordinance or resolu—
tion duly adopted by the City Council of the City.
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 purpose, any of the outstanding Bonds at a
price lose than the redemption price horoinbefore prescribed.
Section 20g* Notice having been given by publication in the manner
provided in Section 201, the Bonds called for redemption shall become due
and payable on the redemption date designated in the notice at the redemp-
tion price determined, as provided in Section 201, and upon presentation
and surrender thereof at the place of payment thereof, together with all
appurtenant coupons maturing subsequent to the redemption date, such Bonds
shall be paid at the redemption price aforesaid. All interest install,
ments represented by coupons which shall have matured on or prior to the
redemption date shall continue to be payable to the bearers of such coupons.
Interest on any Bonds to be redeemed shall cease to accrue from and after
the redemption date specified in such notice unless the City defaults in
the payment of the redemption price thereof,
Section 204. All Bonds redeemed prior to maturity under the provi-
sions of this ordinance, together with the unmatured coupons, if any,
shall be cancelled and incinerated by the City Treasurer forthwith, 'and
a certificate showing the destruction of such Bonds or coupons shall be
filed in the office of the City Treasurer,
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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 Construction Fund the
City shall apply the sum of .{$lo700s000.00 to the payment of the cost•of
improving, extending and enlarging the City Water System and the sum of
$300,000.00 to the payment of the cost of improving, extending and enlarg-
ing 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 created by Section 405 of
this ordinance.
1'1
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 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 wean 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 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; and (4)
the term "Net Revenues" shall mean the portion of the Revenues which is
not required to pay Operating &Venses.
Section 402. All Revenues (as defined in Section 401 of this ordi-
nance) received or collected by the City or any of its officers or agen-
cies shall be deposited by the City Treasurer, as promptly as possible
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 known as the "Water and Sewer Operating Fund"
(hereinafter referred to as the operating Fund).
16
Section 403• Subject 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 the City to expend
moneys in the Operating Raid in accordance with Section 406 of this ordi-
nance, all moneys paid or required by Section 402 to be paid into the
Operating Fand are hereby pledged to secure the payment of the principal
of, the redemption premium, if any, and interest on the Bonds (including
Additional Bonds issued in accordance with Section 109 of this ordinance),
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,physi-
cal 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 Fluid the City shall first pay
Operating Expenses as such expenses become due and payable.
Section 405. (1) There is hereby created a special fund to be known
as the "Water and Sewer Debt Service Fund" (hereinafter referred to as
Debt Service Fund), which shall be divided into a "Current Account" and
a "Reserve Account." All moneys paid into such accounts as hereinafter
provided 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 end-
ing 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 pay-
able, pay
(a) Into the Current Account of the Debt Service Fond:
(1) An amount equal to one-sixth (1/6) of the
interest payable on the Bonds (including
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
(including Additional 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 Ad-
ditional Bonds) then outstanding that will
mature on the March first next ensuing; and
(b) Into the Reserve Account of the Debt Service Funds
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 Ac-
count shall be as much as the aggregate
amount of principal and interest that will
become due and payable in the twelve monthsf
period beginning on the March 2 next en-
suing on the Bonds (including Additional
Bonds) then outstanding, no payment need
be made into the Reserve Account; and pro-
vided, further, that no greater payment
need be made into the Reserve Account than
shall be necessary 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 foregoing
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 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 Ad-
ditional Bonds had been delivered six months before the interest payment
LO
date next ensuing, and (b) on account of principal, if said Bonds or Ad-
ditional Bonds had been delivered one year before the principal payment
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 Additional Bonds, shall at any time be less than the total amount rs.
quired by the foregoing provisions of this section to be paid into such
account up to such time, after deducting, in the case of the Current Ac-
count, moneys previously applied to, or set aside and held by the City
for, the payment of matured Bonds or Additional Bonds and matured coupons
appurtenant to 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 Additional Bonds issued and unpaid, plus the amount of interest
then due and thereafter to become due on the Bonds and Additional Bonds
issued and unpaid, no further payment need be made into the Debt Service
Fund.
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Section 406. There is hereby created a special account in the
Operating Fund to be known as the "Operation Reserve Account." On or be-
fore 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, the City shall set aside and pay
into the Operating Reserve Account, out of any balance of the Revenues re-
maining in the Operating Fund, the sum of $16,000.00, or such larger sum
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as may hereafter be prescribed by the City Council, until there shall be
accumulated in the Operation Reserve Account a sum which shall be equal
to twenty—five per centum 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 ac—
count 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 Sec—
tion 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 Rind
shall be used by the City for the purpose of paying or making provision
for paying the principal of and interest on the 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 Accountof 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 ac-
counts 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 invest-
ment 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,
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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 ap-
pertaining, and that it will faithfully do and perform and at all times
fully observe any and all covenants, undertakings, stipulations and pro-
visions contained herein or in the Bonds at any time outstanding hereunder.
Except as in this ordinance• otherwise provided, such principal and inter
eat 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 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 con-
tingently, to levy a tax therefor*
Section 502. The City covenants that it will at all times maintain
the Systems in good working 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, es-
tablish and collect adequate sates and charges for the services furnished
by the Systems, so that the Revenues derived therefrom will at all times
be sufficient to provide funds for paying Operating Expenses as they be-
come 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 in-
debtedness which may become a charge upon the Revenues of the Systems.
4
Section 504. The City covenants that it will at all times carry in-
surance 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,
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 per..
mitted$ 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 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 replace-
ment of the properties so sold or disposed of,'or shall be deposited to
the credit of the Revenue 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 mainte-
nance 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 Revenue Fund.
Section 506. So far as it legally may, the City covenants and agrees
that, so long as the Bonds or any of them are outstanding, it will not
grant a franchise for the operation of any competing water system or sewer
system.
w Section 507. The City covenants -and agrees that, so long as the
Bonds or any of them are outstanding, the rates charged for services fur-
nished by the Systems shall be equal and uniform, and no free service
shall be allowed except for City public schools or buildings and 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' Serviee Fund, except in the manner and subjeeb to
the limitations prescribed by Section 109 of this ordinance.
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 510a The City covenants that it will keep proper books of
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, cer-
tified by a competent and independent certified public accountant, showing
in reasonable 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 created by 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 mat-
ters pertaining to the financial operation and condition of the Systems
during such fiscal year. The City further covenants that.it will cause a
f!�
copy of such statement to be mailed 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 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 Mund (other
than money invested as hersinbefore provided) shall be adequately 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 In•-
demnity Companies qualified as security for United States Government de-
posits, or as may be "required by the applicable laws of the State of Texas
ARTICLE 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 separate
and apart from the Bond to which it appertains, such coupon shall not,
unless accompanied by such Bond, 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 appertaining 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 party to
or approve of any arrangemant for such extension by purchasing 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 outstanding hereunder and
of all such coupon, 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 same
from time to time, this ordinance shall be deemed to be and shall consti-
tute 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 se-
curity 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 expressly provided herein. .
Section 603. 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
h8
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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 its covenants, conditions and stipulations being intended
to be for the sole and exclusive benefit of the holders from time to time
of the Bonds,
Section 604. In the event that any one or more of the provisions
of this ordinance shall for any reason be held to be illegal or invalid,
such illegality or invalidity shall not affect any other provision of
this 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 affect and be in full force
and effect from and after the date of its passage.
Mayor of the City of Fort Worth,
Texas
4ty,
retary of the City
Fort Worth, Texas
APPROVED AS TO FORM AND LEGALITYs
City Attorney of� of
Fort Worth, Texas
I, B. S. Birdsong, City Secretary of the City of Port north, Texas, do hereby
certify that the above and foregoing Ordinance No. 2674 was adopted by the
City Council of the City of Part Worth, Texas, in re&lar session April 20th, 1949•
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