HomeMy WebLinkAboutOrdinance 6677 ORDINANCE NO.
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF THREE
MILLION DOLLARS ($3,000,000.00) OF TRANSPORTATION
SYSTEM BONDS, SERIES 1972D, OF THE CITY OF FORT
WORTH, TEXAS, BEARING INTEREST AT THE RATES HERE-
INAFTER SET FORTH, AND PROVIDING FOR THE LEVY,
ASSESSMENT AND COLLECTION OF A TAX SUFFICIENT TO
PAY THE INTEREST ON SAID BONDS AND TO CREATE A
SINKING FUND FOR THE REDEMPTION THEREOF AT MA-
TURITY; REPEALING ALL ORDINANCES IN CONFLICT
HEREWITH; AND PROVIDING THAT THIS ORDINANCE
SHALL BE IN FORCE AND EFFECT FROM AND AFTER THE
DATE OF ITS PASSAGE.
WHEREAS, it is deemed advisable and to the best in-
terest of the City of Fort Worth that certain improvement
bonds authorized at an election previously held in said City
be issued and sold at this time, the date of election, the
amount of bonds authorized thereat, purpose, and the amount
of bonds now to be sold being as follows:
DATE OF AMOUNT
ELECTION AUTHORIZED PURPOSE OF BONDS AMOUNT BEING OFFERED
April 11, $3,000,000 Transportation $3,000,000
1972 System
NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
SECTION 1.
That the bonds of said City to be called "Transporta-
tion System Bonds, Series 1972D, " be issued under and by
virtue of the Constitution and laws of the State of Texas
and the Charter of said City for the following purpose, to
wit: for the �egttimab6 municipal purpose of acquiring,
equipping and improving the physical equipment and personal
property of the Fort Worth Transit Company, a private cor-
poration, and acquiring the necessary lands therefor, which
bonds aggregate in principal amount the sum of Three Million
Dollars ($3,000,000.00) .
SECTION 2.
That said bonds shall be numbered from one (1) to six
hundred (600) , both inclusive, of the denomination of Five
Thousand Dollars ($5,000.00) each, aggregating Three Million
Dollars ($3,000,000.00) .
SECTION 3.
That said bonds shall be dated June 1, 1972, and shall
become due and payable serially as follows:
Bond Numbers Maturity Dates Amounts
1 to 40, both incl. June 1, 1973 $200,000.00
41 to 80, both incl. June 1, 1974 200,000.00
81 to 120, both incl. June 1, 1975 200,000.00
121 to 160, both incl. June 1, 1976 200,000.00
161 to 200, both incl. June 1, 1977 200,000.00
201 to 240, both incl. June 1, 1978 200,000.00
241 to 280, both incl. June 1, 1979 200,000.00
281 to 320, both incl. June 1, 1980 200,000.00
321 to 360, both incl. June 1, 1981 200,000.00
361 to 400, both incl. June 1, 1982 200,000.00
401 to 440, both incl. June 1, 1983 200,000.00
441 to 480, both incl. June 1, 1984 200,000.00
481 to 520, both incl. June 1, 1985 200,000.00
521 to 560, both incl. June 1, 1986 200,000.00
561 to 600, both incl. June 1, 1987 200,000.00
SECTION 4.
That said bonds shall bear interest at the rates as
follows:
Bonds Nos. 1 to 80, both incl., 5.50% per annum;
Bonds Nos. 81 to 120, both incl., 3.80% per annum;
Bonds Nos. 121 to 160, both incl., 3.50% per annum
Bonds Nos. 161 to 200, both incl., 3.60% per annum;
Bonds Nos. 201 to 240, both incl., 3.70% per annum;
Bonds Nos. 241 to 280, both incl., 3.80% per annum;
Bonds Nos. 281 to 320, both incl., 3.90•� per annum;
Bonds Nos. 321 to 360, both incl., 4.00% per annum;
Bonds Nos. 361 to 400, both incl., 4.10% per annum;
Bonds Nos. 401 to 440, both incl., 4.20% per annum;
Bonds Nos. 441 to 480, both incl., 4.30% per annum;
Bonds Nos. 481 to 520, both incl., 4.40% per annum;
Bonds Nos. 521 to 560, both Incl., 4.50% per annum; and
Bonds Nos. 561 to 600, both Incl., 4.60% per annum,
payable December 1, 1972, and semi-annually thereafter on
June 1st and December 1st of each year.
SECTION 5.
That the principal of and interest on said bonds shall
be payable upon presentation and surrender of bond or proper
coupons at the Manufacturers Hanover Trust Company, in the
Borough of Manhattan, City and State of New York.
SECTION 6.
That each of said bonds shall be executed for and on
behalf of the City of Fort Worth, Texas, by the facsimile
signature of the Mayor, approved as to form and legality by
the facsimile signature of the City Attorney, and attested
manually by the City Secretary, with the seal of the City
thereon duly affixed to, or impressed, or printed or litho-
graphed, and the interest coupons shall be executed with the
lithographed or printed facsimile signatures of the Mayor
and City Secretary of the City of Fort Worth, Texas, and
such facsimile signatures shall have the same effect as if
manually placed on said bonds and coupons.
SECTION 7.
That the form of said bonds shall be substantially as
follows:
SECTION 8.
That the proceeds from all taxes collected for and on
account of this series of bonds shall be credited to an
Interest and Redemption Fund for the purpose of paying the
interest as it accrues and to provide a sinking fund for
the purpose of paying each installment of principal as it
becomes due; that for each year hereafter while any of said
bonds, or interest thereon, are outstanding and unpaid, there
shall be computed and ascertained, at the time other taxes
are levied, the rate of tax based on the latest approved
rolls of said City as will be requisite and sufficient to
make, raise and produce in each of said years a fund to pay
the interest on said bonds and to provide a sinking fund suf-
ficient to pay the principal as it matures, or at least 2%
of the principal as a sinking fund, whichever is greater,
full allowances being made for delinquencies and costs of
collection; that a tax at the rate as hereinabove determined
is hereby ordered to be levied and is hereby levied against
all of the taxable property in said City for each year while
any of said bonds, or interest thereon, are outstanding and
unpaid; that the said tax each year shall be assessed and
collected and placed in the Interest and Redemption Fund;
and that the City Treasurer shall honor warrants against said
fund for the purpose of paying the interest maturing and prin-
cipal of said bonds and for no other purpose.
SECTION 9.
That to pay the interest scheduled to mature on Decem-
ber 1, 1972, there is hereby appropriated the sum of Sixty-
three Thousand, Four Hundred Dollars ($63,400.00) from
funds of the City available for such purpose; and that the
money thus appropriated shall be used for no other purpose
than to pay said interest.
SECTION 10.
That the bonds herein authorized shall be presented to
the Attorney General of the State of Texas for examination
and approval and to the Comptroller of Public Accounts for
registration; that 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 that the seal of
the Comptroller shall be affixed to, or impressed, or printed
or lithographed on each of said bonds.
SECTION 11.
That the sale of the bonds herein authorized, together
with the bonds authorized by Ordinance No. 6678, to Chemical
Bank, of New York, New York, at a price of par and accrued
interest to date of delivery, is hereby confirmed; and that
delivery of such bonds shall be made to such purchaser as
soon as may be after the passage of this ordinance upon pay-
ment therefor in accordance with the terms of sale.
SECTION 12.
That the City hereby covenants that the proceeds from
the sale of the bonds will be used as soon as practicable
for the purpose for which the bonds are issued; that such
proceeds will not be invested in any securities or obligations
except for the temporary period pending such use; and that
such proceeds will not be used directly or indirectly so as
to cause all or any part of the bonds to be or become "arbi-
trage bonds" within the meaning of Section 103 (d) of the
Internal Revenue Code of 1954, as amended, or any regula-
tions or rulings prescribed or made pursuant thereto.
SECTION 13.
That all ordinances and resolutions or parts thereof
in conflict 1werewith are hereby repealed.
SECTION 14.
That this ordinance shall take effect and be in full
force and effect from and after the date of its passage, and
it is so ordained.
SECTION 15.
It is hereby officially found and determined that the
meeting at which this ordinance was passed was open to the
public as required by law, and that public notice of the
time, place and purpose of said meeting was given as required
by Chapter 227, Acts of the 61st Legislature, Regular Ses-
sion, 1969.
Mayor of the City of Fort Worth,
Texas
ATTEST:
City Secretary of the City
of Fort Worth, Texas
APPROVED AS TO FORM AND LEGALITY-
City Attorney of the City of
Fort Worth, Texas
NO. UNITED STATES OF AMERICA $5,000.00
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF FORT WORTH
TRANSPORTATION SYSTEM BOND
SERIES 1972D
The City of Fort Worth, in the County of Tarrant, State
of Texas, a municipal corporation duly incorporated under the
laws of the State of Texas, for value received, hereby promises
to pay to the bearer hereof, on the 1st day of June, 19
the sum of
FIVE THOUSAND DOLLARS
in lawful money of the United States of America, with interest
thereon from date hereof at the rate of % per annum,
evidenced by coupons payable December litl972, and semi-
annually thereafter on June 1st and December 1st of each
year, both principal and interest payable upon presentation
and surrender of bond or proper coupon at the Manufacturers
Hanover Trust Company, in the Borough of Manhattan, City and
State of New York, and the City of Fort Worth, Texas, is
hereby held and firmly bound, and its faith and credit and
all taxable property in said City are hereby pledged for the
prompt payment of the principal of this bond at maturity and
the interest thereon as it accrues.
This bond is one of a series of six hundred (600) bonds
of like tenor and effect, except as to number, interest rate
and maturity, numbered from one (1) to six hundred (600) ,
both inclusive, of the denomination of Five Thousand Dollars
($5,000.00) each, aggregating Three Million Dollars ($3,000,000.00) ,
issued for the legitimate municipal purpose of acquiring,
equipping and improving the physical equipment and personal
property of the Fort Worth Transit Company, a private cor-
poration, and acquiring the necessary lands therefor, under
and by virtue of the Constitution and laws of the State of
Texas and the Charter of said City, and pursuant to an ordi-
nance passed by the City Council of the City of Fort Worth,
Texas, which ordinance is duly of record in the Minutes of
said City Council.
The date of this bond in conformity with the ordinance
above mentioned is June 1, 1972.
AND IT IS HEREBY CERTIFIED AND RECITED that the issu-
ance of this bond, and the series of which it is a part, is
duly authorized by law and by a vote of the resident, quali-
fied electors who own taxable property in said City and who
had duly rendered the same for taxation in the City of Fort
Worth, Texas, voting at an election held for that purpose
within said City on April 11, 1972; that all acts, condi-
tions and things required to be done precedent to and in
the issuance of this series of bonds, and of this bond,
have been properly dene and performed and have happened in
regular and due time, form and manner as required by law;
that sufficient and proper provision for the levy and col-
lection of taxes has been made, which, when collected, shall
be appropriated exclusively to the payment of this bond and
the series of which it is a part, and to the payment of the
interest coupons hereto annexed as the same shall become
due; and that the total indebtedness of said City of Fort
Worth, Texas, including the entire series of bonds of which
this is one, does not exceed any constitutional, statutory
or charter limitation.
IN WITNESS WHEREOF, this bond has been signed by the
printed or lithographed facsimile signature of the Mayor
of said City, attested by the manual signature of the City
Secretary, and approved as to form and legality by the printed
or lithographed facsimile signature of the City Attorney, and
the interest coupons attached hereto have been signed by the
printed or lithographed facsimile signatures of the Mayor
and City Secretary, and the official seal of said City has
been duly affixed to, or impressed, or printed or lithographed
on this bond.
CITY OF FORT WORTH, TEXAS
BY
ATTEST: Mayor
City Secretary
APPROVED AS TO FORM AND LEGALITY:
City Attorney
That the form of coupons to be attached to said bonds
shall be substantially as follows:
THE CITY OF FORT WORTH, TEXAS, promises
to pay to bearer at the Manufacturers BOND NO.
Hanover Trust Company, in the City of On the
1st day of
New York, New York, the amount speci-
Dec., 19 _
fied hereon for interest due that day June,
on its Transportation System Bond, SERIES 1972D
Series 1972D, dated June 1, 1972.
COUPON NO.
CITY OF FORT WORTH, TEXAS
BY
Mayor
ATTEST:
City Secretary
That substantially the following certificate shall be
printed on the back of each bond:
OFFICE OF COMPTROLLER
STATE OF TEXAS
I HEREBY CERTIFY that there is on file and of record in
my office a certificate of the Attorney General of the State
of Texas to the 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 obligation upon said City of Fort worth,
Texas, and said bond has this day been registered by me.
WITNESS my hand and seal of office at Austin, Texas,
this the day of , A. D. 19
Comptroller of Public Accounts
of the State of Texas
41& �'7
City of Fort Worth, Texas
LINE //�f and
Q/� (g�
DOBBS Mayor �i/n�LA/ Council Communication
r.RAHAkf �y
DATE REFERENCE SUBJECT: Sale of $4,265,000 General PAGE
NUMBE5/24/72 G-1986 Obligation Bonds Iof 1
Bids for $4,265,000 General Obligation Bonds were received Wednesday, May 24,
1972, at 10 A.M. A summary of the average net effective interest rate for
bids received is shown below.
Chemical Bank 4.198786%
Banc Northwest 4.20618 %
Harris Trust and Savings 4.2205 %
First National City Bank 4.2443 %
Continental Illinois National Bank 4.24590
Fort Worth National Bank 4.2542 %
Halsey Stuart and Company 4.26065 %
Wortheim and Company, Inc. 4.26472 %
Smith Barney & Company 4.266035%
Mercantile Trust Company 4.2790 7
First National Bank of Chicago 4.28190 %
Salomon Brothers and Associates 4.28381 %
Philadelphia National Bank 4.29633 %
Kidder, Peabody & Company 4.3146 %
Morgan Guaranty Trust 4.35183 %
It is recommended that the bonds be sold to the bidder offering the lowest
interest cost, Chemical Bank,at an average net effective rate of 4.198786%,
and that the City Council adopt Ordinance Number 6677 authorizing the is-
suance of $3,0003,000 Transportation System Bonds, and Ordinance Number 6678
authorizing the issuance of $1,265,000 Refunding Bonds.
RNL:mhg
SUBMITTED BY: DISPOSITIO_ N JP-COUNCIL: I PRO ES/SEED BY
El OTHER (DESCRIBE) X/Zd
\ CITY SECRETARY
DATE
CITY MANAGER
City of Dort Worth, Texas
Mayor. and Council Communication
DATE REFERENCE SUBJECT: PAGE
NUMBER Printing Bonds
5/24/72 7-871 1 of 1
Bids for printing 853 wing style bonds were mailed to six companies. The
following bids were received May 18, 1972.
Charge Per
Base Bid Interest Change
Steck Warlick Company $1,141.00 $12.50
Northern Bank Note Company $1,293.00 $25.00
Northern Bank Note Company also submitted a proposal for printing book style
bonds at a cost of $887 plus $15.00 for each interest change. This proposal
does not meet the specifications.
The bid for the purchase of the bonds requires 26 interest changes. Steck-
Warlick Company has the lowest bid for printing bonds, computed as follows:
853 bonds $1,141.00
26 Interest Changes @ $12.50 325.00
$1,466.00
It .is recommended that a contract for printing bonds be awarded to the Steck-
Warlick Company on its bid of $1,466.00, f.o.b. Fort Worth National Bank.
RNL:mhg
SUBMITTED BY: DISPOSITION BY COUNCIL: PROCESSED BY
0 APPROVED 0 OTHER (DESCRIBE)
CITY SECRETARY
DATE
CITY MANAGER `