HomeMy WebLinkAboutOrdinance 4392 ORDINANCE No. 4392
UTHORIZING THE ISSUANCE OF $2,750,000.00 CITY
OF FORT WORTH AIRPORT REVENUE BONDS, SrHIES 1960,
BEARING INTEREST AT THE RATES HEREIN PRESCRIBED,
MATURING SERIALLY, FOR TES =OSE OF PROVIDING FOR
THE REFUNDING OF OUTSTANDING AIRPORT REVENUE BONDS
AND PROVIDING FUNDS TO ACQUIRE THE IMPROVEMENTS CON-
STRUCTED BY FORT WORTH AIR TERMINAL, INC. ON LANDS
OWELD BY THE CITY FOR AIRPORT PURPOSES, AND TO MAKE
FURTHER Iiv1PROVEMENTS TO THE CITY'S AIRPORT SYSTEM;
PLEDGING THE AIRPORT REVENUES AS DESIGNATED HEREIN
TO THE PAYMENT OF SAID BONDS; LEVYING A TAX NOT TO
EXCEED 5¢ ON THE ONE HUNDRED DOLLARS OF ASSESSED
VALUATION OF TAXABLE PROPERTY TO SUPPLEMENT SUCH IN-
COME TO ASSURE EFFICIENT OPERATION OF SAID SYSTEM,
PROVIDING THATSA ID BONDS SHALL NOT BE PAID OUT OF
FUNDS DERIVED FROM TAXATION; ORDAINING OTHER PRO-
VISIONS RELATING TO THE SUBJECT; AND DECLARING AN
EMERGENCY.
WHEREAS, the City of Fort ,forth (hereinafter called
"City") is operating under its Home Rule Charter and has a population of
more than 200,000 according to the last preceding Federal Census and owns
land acquired for airport purposes, a part of which is leased to Fort Worth
Air Terminal, Inc., an airport operating Corporation; and
WHEREAS, the City has determined to issue its airport
revenue bonds to acquire the improvements constructed by said operating
corporation on such land and to further improve its airport or airports, as
authorized .by Chapter 43 Acts of the 53rd Legislature, First Called Session,
1954, as amended dy Chapter 225, Acts 1957, 55th Legislature (carried forward
as Article 1269,E-5 Vernons Annotated Civil Statutes of Texas, and as authoriz-
ed by Chapter 13, Acts .1959, 56th Legislature Second Called Session (carried
forward as Article 1269h-2, Vernons Annotated Civil Statutes of Texas); and
WHEREAS, the City heretofore under authority of said
Chapter 43, supra, on the 9th day of May, 1958, passed an-ordinance authoriz-
ing the issuance of the following described bonds, all of which are .outstand-
ing and unpaid:
City of Fort Worth Airport Revenue Bonds, Series
1958, dated April 1, 1958, numbered One (1) to One Thousand
Eight Hundred Fifty (1,-850), both inclusive, of the denomi-
nation of One Thousand ($1,000.00) Dollars each, aggregating
One Million Eight Hundred Fifty Thousand ($1,850,000.00)
Dollars, bearing interest payable October 1, 1958, and semi-
annually thereafter on April 1 and October 1 of each year at
rates as follows:
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Bonds Nos. 1 to 50, both incl.
April 1, 1958 to 1.pril 1, 1961 - 50 ptr annum;
April 1, 1961 to maturity dates- 4% per annum.
Bonds Nos. 51 to 420, both Incl.
April 1, 1958 to April 1, 1961 - 5% per annum:
Alril 1, 1961 to maturity dates - 41 per annum.
Bonds Nos. 421 to 730, both Incl.
April 1, 1958 to April 1, 1961 - 5% per annum;
April 1, 1961 to maturity dates per annum.
Bonds Nos. 731 to 18502 both incl.
April 1, 1958 to April 1, 1961 - 5% per annum;
April 1, 1961 to maturity dates - 4-3/11% per annum,
and maturing serially on April lst in each of the years 1966
to 1985, both inclusive.
and
WHEREAS, it is deemed advisable by the City that said
above described bonds should be refunded so as to facilitate the financing
of the acquisition of said improvements and the further improvement of its
airport or airports; and
NHERr1AS, the holders of said bond, have consented to the
refunding thereof and have agreed to accept in exchange therefor a like prin-
cipal amount of thy: bonds hereinafter authorized;
K1 IT ORDA INLD BY M CITY COUNCIL OF PE C I12Y OP
FORT WORTH:
1. Authorization of Bonds. That to refund the outstz3nd-
ing airport revenue 'tones of the City and to provide funds to acquire tho'. im-
provements con:;tructed by Fort :forth Air Terminal, Inc. on lands owned by the
City for airport purposes and for the further improvement of the City's
Airports System the revenue bonds of the City of Fort Worth, in the aggregate
amount of Two Million Seven Hundred Fifty Thousand ($2,750,000.00) Dollars be
l..eued.
2. Designation - Denomination - Serial Numbers - 7:ntc>reat
Ratss: That such bonds to be, known as City of Fort ?north Airport Revenue
Bonds, Series 1960, (hereinafter •sl.lf:d the `Revt.iv,e> Bonds"), be it.--sued pur-
suant to the Constitutic.n and law: of the St,,,!V� of Texas, including the
provisions of Chapter 43, Acts 53rd Legislature, First Called Session, 1954,
as amended, and by Chapter 13, Acts 1959, 56th Legislature, Second Called
Session, and the Charter of said City, and that they be numbered from One
(1) to Two Thousand Seven Hundred Fifty (2,750), both inclusive, in the
denomination of One Thousand ($1,000.00) Dollars each, aggregating Two
Million Seven Hundred Fifty Thousand ($2)750,000.00) Dollars, bearing
interest payable April 1, 1961, and semi-annually thereafter on October 1
and April 1 of each year at rates as follows:
Bonds Nos. 1 to 50, both incl., 4� per annum;
Bonds Nos. 51 to 420, " 4� per annum;
Bonds Nos. 421 to 730, " 4-3/4% per annum:
Bonds Nos. 731 to 2750, " " 5% per annum.
3. Date - Maturities - Registration: The Revenue Bonds
shall be dated October 1, 1960, and shall become due and payable serially as
follows:
BONDS NUMBERS MATURITY DATES AMOUNTS
1 to 50, both Incl., October 1, 1965, $ 50,000.00
51 to 100, " October 11 1966) 50,000.00
lol to 160, October 1, 1967,
161 to 220, October 11 1968, 60,000.00
221 to 280, " October 1, 1969, 60,000.0O
281 to 350, " October 1, 1970, 70,000.00
351 to 420, October 1, 1971, 70,000.00
421 to 490, October 1, 1972, 70,000.00
491 to 570, October 1, 1973, 80,000.00
571 to 650, October 1, 1974, 80,000.00
651 to 730, " " October 1, 1975, 80,000.00
731 to 870, October 1, 1976, 140,000.00
871 to 985, October 1, 1977, 115,000.00
986 to 1085, " October 1, 1978, 100,000.00
1086 to 1185, " " October 1, 1979, 100,000.00
1186 to 1295, " " October 1, 1980, 110,000.00
1296 to 1495, " " October 1, 1981, 200,000.00
1496 to 1715, " October 1, 1982, 220,000.00
1716 to 1915, " October 1, 1983, 200,000.00
1916 to 2115, " October 1, 1984, 200,000.00
2116 to 2180, October 1, 1985, 65,000.00
2181 to 2235, " " October 1, 1986, 55,000.00
2236 to 2305, October 1, 1987, 70,000.00
2306 to 2375, October 1, 1988, 70,000.00
2376 to 2450, October 1, 1989, 75,000.00
2451 to 2750, " October 1, 1990, 300,000.00
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Each Revenue Bond, at the option of the holder, sh.,:ll
be registerable as to principal only on the books of the City, kept in the
City Hall at Fort Worth, Texas, by the City Secretary as Bond Registrar,
in accordance with the provisions for registration printed on the back of
each of the Revenue. Bonds.
4. Medium and Place of Payment: The Revenue Bonds and
the coupons representing obligations to pay interest thereon shall be pay-
able in lawful money of the United State:; of America at The First National
Bank of Fort !orth, in the City of Fort orth, Texas, (herein defined as
the "Bank of Payment") without exchange or collection charges to the owner
cr holder of such bonds and coupons.
5. Option of Redemption: In certain of the Revenue
Bonds designated in this Section 5 the City reserves the option of re-
demption prior to maturity, the extent and effect of such option being as
follows:
Revenue Bonds maturing on and prior to October 1, 1975
shall contain no option of redemption prior to maturity.
In Bonds Numbers 731 to 2750 both inclusive, the
City reserves the option of calling each such bond for redemption prior to
maturity on any interest payment date on and after October 1, 1975, at par
and accrued interest to date so fixed for redemption. Sixty days' notice
of such call shall be given in writing to the pl,-ce of payment and notice
shall be published in the City of New York, New York. Said notice shall
appear in said publication in at least one issue, the date of said issue
being not less than sixty days prior to tLc� date so fixed for redemption.
If any such bond is called for redemption in at�id manner and if funds suffi-
cient to pay the redemption price shall have been duly placed in the bank of
payment by the date fixed for redemption, it shall not thereafter bear in-
terest. If fewer than all of the optional bonds are called for redemption,
they shall be called in their inverse numerical order.
6. Method of Executing Bonds and Coupons: Each of the
Revenue Bonds shall be signed by the facsimile signature of the Mayor and
countersigned manaally by the City Secretary and the corporate seal of the
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City of Fort Worth, Texas, shall be impressed upon each of them. The fac-
simile signatures of the Mayor and City Secretary shall be lithographed or
printed upon the coupons attached to said bonds and euch facsimile signa-
tures shall have the same effect as if manually placed on said bonds and
coupons.
7. Special Obligaiticns: The Revenue Bonds shall con-
stitute special obligations of the Ci'ry of Fort florth and each of the bonds
shall cont3in a provision stating that the holder thereof shall never have
the right to demand payment of said gbligation out of funds raised or to be
raised by taxation. The Ci;;y shall rot be precluded by any provision of
this ordinance from using any other funds which may be used lawfully for
the purpose in paying the principal of or interest on the Revenue Bonds.
8. Form of Bonds: The form of the Revenue Bonds shall
be substantially as follows:
NO. $1,000.00
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF FORT WORTH
AIRPORT REVENUE BOND
SERIES 1960
The Ci+,y of Fort Worth, in the County of Tarrant, State
of Texas, a municipal core,)ration duly incorporated under the laws of the
State of Texas, and operating under its Home Rule Charter, for value receive
hereby acknowledges itself indebted to and promises to pay solely out of
the revenues hereinafter specified, to bearer, or, if this bond be registere
to the registered holder hereof, on the lst day of October, 19 , (or
earlier as hereinafter referred to) (Note 1 to printer) the principal sum o
ONE THOUSAND DOLLARS
in lawful money of the United States of America, (Note 2 to printer) with
interest thereon from date hereof at the rate of
( fo) per cent per annum, payable April 1, 1961, and semi-annually there
after on October 1 and April 1 of each year until the principal sum shall be
paid, which interest is payable in lawful money of the United States of
America, and interest falling due on or prior to maturity is payable only
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upon presentation and surrender of proper interest coupons hereto attached
as they severally become due, both principal and interest being payable at
The First National Bank of Fort Worth, in the City of Fort Worth, Texas,
(hereinafter called the "Bank of Payment") without exchange or collection
charges to the owner or holder hereof, and the City of Fort Worth is hereby
held and firmly bound to apply the revenues of its Airport E�rstem as defin-
ed and as prescribed in the ordinance (hereinafter called the "Bond
Ordinance") authorizing this bond and the issue of which it is a part to
the payment of such principal and interest as they mature.
This bond may be registered as to principal alone in
accordance with the provisions printed on the back of this bond and subject
to the terms and conditions set forth in the Bond Ordinance. This bond and
interest coupons attached hereto are made negotiable by law and are trans-
ferable by delivery and nothing contained in this bond or in the Bond
Ordinance shall affect or impair negotiability except the limitations
incident to registration of ownership.
This bond is one of a series of bonds (defined in the
Bond Ordinance as "City of Fort Worth Airport Revenue Bonds, Series 1960")
of like tenor and effect except as to serial number, maturity date, inter-
est rate, and option of redemption, numbered One (1) to Two Thousand Seven
Hundred Fifty (2,750), both inclusive, of the denomination of One Thousand
($1,000.00) Dollars each, aggregating Two Million Seven Hundred Fifty
Thousand ($2,750,000.00) Dollars, issued by the City of Fort Worth, Texas,
for the purpose of refunding the outstanding airport revenue bonds of the
City and to provide funds to acquire the improvements constructed by Fort
Worth Air Terminal, Inc. on lands owned by the City for airport purposes
and for the further improvement of the City's Airports System, (defined in
the Bond Ordinance and herein as the "Airports System") in accordance with
the Constitution and laws of the State of Texas and the Charter of said Cit
and pursuant to the Bond Ordinance passed by the City Council, duly recorde"
in the minutes of the City Council.
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(Note 3 to Printer)
(The City reserves the right to redeem this bond prior
to maturity en October 1, 1975, or on :any interest payment date thereafter,
at a price of per :end accrued interest to date so fixed for redemption.
:ix_ty days' notice of sin h call is to be given in writing to the place of
payment and said notice is to be publis;heQ in a financial publication
published in the Cite of Nev York, New York. Said notice shall appear in
said publication in .at least one issue, the date of said issue being not les,
than sixty days prior to the date so fixed for redemption. If such bond is
called for redemption in said manner and if funds sufficient to pay the re-
demption price shall have been duly placed in the bank of payment by the
date fixed for redemption, it shall not thereafter bear interest. If fewer
than all of the optional bonds are called foe redemption, they shall b=
called in their inverse numerical order.)
The date of this bond in conformity with the Bond
Ordinance is October 1, 1960.
The holder hereof shall never have the right to demand
payment of this obligation out of any funds raised or to be raised by tax-
ation, but the City is not precluded by the Bond Ordinance, or by this pro-
vision, from utilizing; any funds which may be lawfully used for the purpose
of making such payment.
This bond and the series of which it is a part is and
are secured by the obligation of the City to make the payments of principal
and of interest from Gross Revenues to be derived by the City from the
operation of its Airports System which have been pledged to the payment
thereof to the extent and in the manner prescribed in the Bond Ordinance.
This bond and all bonds of the series of which it is ont_
are special obligations of the City of Fort Worth, secured equally without
priority of any one bond over the other by a pledge of the Gross Revenues of
the City's Airports system as defined in such ordinance. In the Bond
Ordinance and herein the City reserves the right to issue at one time or
from time to time additional revenue bonds which will participate equally
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with the bonds of this Series 1960 in the pledge of said revenues, provided
that all such additional bonds are issued in strict accordance with and
subject to the conditions, covenants and limitations set forth in the Bond
Ordinance.
AND IT IS I3EREBY CERTIFIED AND RECITED that the issu-
ance of this bond and the series of which it is a part is duly authorized
by law, including Chapter 43, Acts of the 53rd Legislature, First Called
Session, 1954, as amended, and Chapter 13, Acts 1959, 56th Legislature,
Second Called Session, and the Charter of the City; that all acts, con-
ditions and things required to have been done and to exist preceding and
in the issuance of this bond and to render the same lawful and valid, have
been properly done, have happened and been performed and do exist in regular
and due time, form and manner, as required by the Constitution and laws of
the state of Texas, the Charter of the City and the Bond Ordinance, and
that this series of Revenue Bonds does not exceed any constitutional,
statutory, or charter limitations, and that provision has been made for the
payment of the principal of and the interest on this bond and the series
of which it is a part, by irrevocably pledging to the payment thereof, the
Gross Revenues to be received from the operation of the City's Airports
System to the extent and in the manner prescribed hereinabove and in the
Bond Ordinance,
IN TESTIMONY MiEREOF the City Council of the City of
Fort Worth, Texas, has caused the seal of said City to be impressed hereon
and this bond to be signed by the facsimile signature of the Mayor of the
City and countersigned manually by the City Secretary, and has caused the
annexed coupons to be signed by the facsimile signatures of the Mayor and
City Secretary as of the date of this bond.
Mayor, City of Fort Worth, Texas.
COUNTERSIGNED:
City Secretary, City of Fort Worth,
Texas.
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• (To be printed on back of each bond)
PROVISIONS FOR REGISTRATION
(No writing to be placed hereon except
by Bond Registrar)
This bond may be registered as to principal alone on the
books of the City kept by the City Secretary, as Bond Registrar, in his
office in the City Hall in Fort Worth, Texas, upon presentation hereof to
the Bond Registrar who shall make notation of such registration in the
registration blank belor:, and this bond may thereafter be transferred only
upon a duly executed assignment of the registered owner or his attorney in
such form as shall be satisfactory to the Bond Registrar, such transfer to
be made on such books and endorsed hereon by the Bond Registrar. Such
transfer may be to bearer and thereafter transferability by delivery shall
be restored but this bond shall again be subject to successive registrations
and transfers as before. The principal of this bond, if registered, unless
registered to bearer, shall be payable only to or upon the order of the
registered owner or his legal representative. Notwithstanding the regis-
tration of this bond as to principal alone the coupons shall remain payable
to bearer and shall continue to be transferable by delivery.
DATE OF REGISTRATION NAME OF REGISTERED OWNER SIGNATURE OF BOND
REGISTRAR
9. Form of Coupons: The form of said coupons shall be
substantially as follows:
NO. $
ON THE 1ST DAY OF
, 19_The City of Fort Worth, Texas, out of the revenues
specified in the bond to which this coupon is attached, will pay to the
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bearer (unless the bond to which this coupon is attached shall have been
called for prior redemption and provision for payment thereof made as pro-
vided therein) (Note 1 to Printer) at The First National Bank of Fort Worth,
in the City of Fort Worth, Texas, without exchange or collection charges
to the owner or holder hereof, the sum of -
( } Dollars in lawful money of the United States of America,
said sum being six (6) montbs' interest due that day on City of Fort Worth
Airport Revenue Bond, Series 1960, bearing the number hereinafter specified,
dated October 1, 1960. The holder hereof shall never have the right to
demand payment of this obligation out of funds raised or to be raised by
taxation. Bond No.
City Secretary Mayor.
(Notes to Printer -
Note No. 1 - This parenthetical expression is to be omitted from all bonds
and coupons maturing on October 1, 1975 and prior thereto.
Note No. 2 - Interest rates effective for the respective bonds are as follows:
Bonds Nos. 1 to 50, both incl., 4L% per annum;
Bonds Nos. 51 to 420) " 4z% per annum;
Bonds Nos. 421 to . 730., �� 4-3/4% per annum;
Bonds Nos. 731 to 2750, 5% per annurp.
Note No. 3 - This parenthetical paragraph is to be inserted in all bonds
maturing on and after October 1, 1976.
10. Form of Comptroller's Certificate: The form of
Certificate of the Comptroller of Public Accounts of the State of Texas to
be printed on the back of each bond shall be substantially as follows:
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 that it is a valid and binding special obligation
of the 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 registered by me.
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WITNESS MY HAND and seal of office at Austin, Texas,
Comptroller of Public Accounts of the
State of Texas.
(SEAL)
11. Approval by Attorney General and its Effect.
Registration: That the Mayor shall be authorized to take and have charge
of all necessary records pending investigation by the Attorney General, and
shall take and have charge and control of the bonds herein authorized pend-
ing their approval by the Attorney General and registration by the
Comptroller of Public Accounts. 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 said Comptroller shall be affixed to each of said bonds.
12. Definitions: For all purposes of the Ordinance
unless at the specified point of use a different meaning is clearly in-
dicated the following definitions of terms are applicable to-wit:
"Revenue Bonds" means the City of Fort Worth Airport
Revenue Bonds, Series 1960, authorized in the Ordinance and the
$2,250,000.00 of bonds which the City reserves the right to issue
later, in one or more installments, in all things on a parity with
the bonds of the first installment but not exceeding in the aggre-
gate the sum of $5,000,000.00;
"Additional Bonds" means revenue bonds in excess of
$5,000,000.00, if any, which may be issued by the City under the
terms and restrictions prescribed in the Ordinance;
"Airports System" or "System" means the Greater
Fort Worth International Airport, (sometimes referred to as
"Amon Carter Field"), Meacham Field, and any other real property
heretofore or hereafter acquired or operated by the City of Fort
Worth for airport purposes, together with any additions or improve-
ments thereto or changes therein which the City hereafter makes or
authorizes and shall also mean and include any airport or airport
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property or property used for airport purposes heretofore or here-
after acquired and used in connection with any joint operating
agreement or contract with a municipal or other public corporation
for the creation and operation of an Interregional kirport or Air-
ports;
"Bank of Payment" means The First National Bank of
Fort Worth, Fort Worth, Texas;
"Bond Ordinance" or "Ordinance" means the ordinance
(and all ordinances amendatory thereof and supplemental thereto)
authorizing the issuance of the Revenue Bonds;
"Bond Registrar" means the City Secretary, whose
office is in the City Hall of the City of Fort Worth, at Fort Worth,
Texas;
"City" means the City of Fort Worth, acting in its
corporate capacity;
"City Council" means the governing body of the City
of Fort Worth;
"Gross Revenues" means the total revenues received
by the City from its Airports System and its operations from whatever
source derived, excluding any rentals (except for ground rentals)
from net rent leases now in existence or which may be executed in the
future wherein the lease consideration is pledged or otherwise uti-
lized to finance the construction of buildings or facilities for
lessee-tenants of the City or acquisition of additional lands or
facilities, but only for such time and to such extent in each case
as the rentals reserved in the lease and any extension or renewal
thereof (other than ground rent) are required to be deposited in a
separate interest and redemption fund or other fund in order to meet
the City's obligations for interest payments and principal repayment
on the bonds or other instruments of indebtedness created to finance
the improvement which is the subject of the lease. Without limiting
the generality of the foregoing, unless especially delimited, "Gross
Revenues" will include all of the income from the ownership and
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operation of the Airports a ystem including landin,r, fee-s and charges,
ground rental, space rentals in buildings, charges of every
character made to concessionaires, and all fees received by the
City on account of the operation of limousines or other conveyances
to and from the airports;
"Operating Expenses" means expenditures necessary
for the efficient operation, maintenance and utili-ation of the Air-
ports _,ystem and the making of all currently needed repairs and
shall include an operating reserve in an amount certified by the
Director of Aviation of the System as the reasonable amount neces-
sary for one month's cost of operation and maintenance of the Air-
ports Oystem. "Operating Expenses" shall not include any allowance
for depreciation, or rewals or replacements of capital assets of the
System.
"Municipal Airport Fund" means the special fund
heretofore created pursuant to Article 46d-11, Vernon's Revised
Civil Statutes of Texas, 1925, as amended, into which the revenues
obtained by the City of Fort Worth from the ownership control and
operation of the Airports system are deposited as received.
13. Pledge of Revenues: All of the Gross Revenues of
the Airports System are hereby irrevocably pledged in an amount sufficient
tor the payment of the Revenue Bonds and any Additional Bonds which may be
issued in accordance with the Ordinance, and the interest thereon, and it
is hereby ordained that the Revenue Bonds and any Additional Bonds, and
the interest thereon shall constitute a first claim upon said Gross Revenues.
14. Rates: The City covenants that it will fix, estab-
lish, maintain and collect such rates, fees, rentals and other charges for
the use of the services and facilities of the Airport6 System, as will pro-
vide revenues and income in an amount each fiscal year sufficient (1) to
pay the principal of and interest on the Revenue Bonds and any Additional
Bonds, if issued, as such principal and interest matures and becomes due in
each fiscal year, (2) to provide and maintain the debt service reserve
:inefter required to be established, and (3) which, together with the
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proceeds of the ad valo:cem tax levied in ::action 15 hereof, will pay all
Operating Expenses of t'�e System. The rates, fees, rentals and other
charges in effect at thf, time of the sale and delivery of the Revenue Bonds
will not be changed so as to reduce the aggregate yield from such rates,
fees, rentals and charg,:s unless and until a report shall have been filed
with the City by an independent fjrm cif Certified Public Accountants, based
on the experience record of the Airports System, demonstrating that such
change can be made without impairing airy of the City's obligations hereunder.
15. Pledge to Payment of Operating Expenses: The Gross
Revenues remaining after provision has '.7een made for the payments required
by Section 17 of this Ordinance shall be used for and are hereby pledged to
the payment of Operating Expenses of the Airports System. In addition to
such pledge of revenues to the payment of Operating Expenses, and as a
supplement to said pledge of revenues to ouch use, there is hereby levied
and pledged to the payment of such Operating Expenses an ad valorem tax of
not exceeding Five (50) Cents on each One :iundred ($100.00) Dollars of
assessed valuation of taxable property in the City. A tax at not exceeding
said rate, or so much thereof as may be required to assure the efficient
operation and maintenance of the Airports System, shall be annually assessed
and collected and the proceeds thereof applied solely to such purpose, pro-
vided, the tax thus to be assessed and collected in any year shall be at
such rate (not to exceed 50 on each $100.00 of assessed valuation) as will
make, raise and produce a sum sufficient to supply the difference between
the amount required to pay Operating Expenses in the next fiscal year, as
estimated in the City's annual Budget and the amount estimated by said
Budget to be available for such purpose from revenues and income of the
System.
16. Municipal Airport Fund: There are hereby created
two (2) separate accounts in the Municipal Airport Fund designated "Gross
Revenue Account" and "Airport Special Tax Account". All receipts from the
ownership and operation of the Airports zystem, included within the defini-
tion of Gross Revenues, promptly after coming into the possession of the
City or its employees shall be deposited in the "Gross Revenue Account".
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All proceeds from the collection of the tax levied under the provisions of
Section 15 of this Ordinance shall be deposited as collected in the "Air-
port especial Tax Account".
The moneys in the Gross Revenue Account shall be applied
as hereinafter provided and pending such application, shall be subject to
a lien and charge in favor of the holders of the Revenue Bands, and Addi-
tional Bonds, if any, outstanding hereunder.
The moneys in the Airport Special Tax kcount, together
with any moneys remaining in the Gross Revenue Account after proper appli-
cation thereof to the payments into the Interest aac Redemption Fund, shall
be used to pay Operating Expenses of the Sys -am..
17• Interest oral Redem_ 'llon ?und: I. special fund is
hereby created and designated "City of Fort 4icrth Airport Revenue Bonds
Interest and Rederption Fund" (hereinafter called "Bond Fund"). Tcare is
hereby created in the Bond Fund an account to be known as "Reserve Account".
It shall be the duty of the City, on or before the 15th
day of each month, to transfer from the Gross Revenue Account to the Bond
Fund the following amounts:
(a) A sum equal to not less than one-sixth of the
amount of interest scheduled to mature on the Revenue Bonds on the
next semi-annual interest payment date and beginning on the 15th day
of October , 1964, such an amount as shall be equal to not
less than one-twelfth (1/12) of the amount of principal of the Revenue
Bonds maturing on the next principal mat+rity date; and
(b) such amount to the credit of the Reserve Account
as shall be equal to 2010 of the sum transferred under clause (a) above,
until there shall have been accumulated therein an amount of money not
less than the average annual principal and interest requirements for
all outstanding bonds issued pursuant to this ordinance, provided that
whenever said Reserve Account is reduced below such amount, such pay-
ments shall be resumed and continued until such amount has been restor-
ed. The Reserve Account is hereby irrevocably pledged for the purpose
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of and shall be used solely to pay principal of and interest on
the Revenue Bonds falli.ng due at any time when there is not suffi-
cient money in the Bond Fund. The duty to make any transfers into
this Account shall be subordinate to the duty to make the transfers
into the Bond Fund, if at any time there is insufficient money in
the Gross Revenue Account to make both such payments in full. When-
ever Additional Bonds are issued, the aggregate amount to be main-
tained in the Reserve Account shall be increased to an amount not
less than an amount equivalent to the average annual principal and
interest requirements of the Revenue Bonds, any ,aCditional Bonds then
outstonding and the AdCi ional Bonds they "croposed to be issued.
18. In,estment of Funr:< : M:;ney �.n the Reserve Account
may be invertec in direct cbligations of or rl".arnn't^ed !:y the
United Stafes. No trvetmert shall be made in such obl_ga' cna r-_itxr;.ng
beyond `l;e `iial maturity date of the Revenue Bonds. An;;, obl-_*F;ati.c.ns in
which : or_a;%r is so invested shall be kept in trust by the City, and a suffi-
cient amount thereof shall be promptly sold and the proceede of sale ap-?lied
to the making of payments required to be made from the Reserve Account,
whenever sue'a payments are necessary to be mada and to the e.:,ter_t moneey
in the Reserve Account may be insufficient to rake such ra-:part.
19. Municipal Airport Fund Balance^: TY?on•?y remaining
in the Gross Revenue Account at the close of business on September 30 of any
year after malki.,ag adequate provision for the funds prescribed and sft�r
taking care of c11 other legal obligations, i" any, against tie ?Municipal
Airport fund and after retai._ing therein an amount certified by the Director
of Avia-lo , c,f. the System as s:zfficient to pay estimated exneL:;c„ of (7pera-
ticr. ='c,r c i,?rind of two month,, (including tr.e mount in th Op rat: ,
reserve), mnt, ^e utilized by thie City for G c.ne or more (-�f :he fc.loain.g:
(a) cap_tal improvements to the Airporto System;
(b) purc'iase or redemption of the Revenue Bonds prior
to scheduled maturity;
(c) payment into the Interest and £edemrtion Fund or
the Reserve Account;
(d) payment of principal of and interest o.a any gen-
eral obligation bonds issued by ue C'.t? for
airport purposes.
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20. Additional Bonds: The City reserves the right to
issue Revenue Bonds in a total amount of $5,000,000.00, including the bonds
authorized by this ordinance and further reserves the right to issue Addi-
tional Bonds in excess of said $5,000,000.00 payable from and secured by a
pledge of the Gross Revenues of the Airports System in accordance with the
Constitution and laws of the State of Texas and under its Home Rule Charter
powers, provided that the conditions imposed by this Section are met, to-wit:
(a) That the City shall not at the time be in default as
to any covenant, condition or obligation prescribed herein;
(b) That the City shall have procured from a firm of In-
dependent Certified Public Accountants a certificate showing that
the average of the Gross Revenues of the Airports System during
the two fiscal years immediately preceding the date of delivery of
the Additional Bonds are equal to a minimum of two and one-half
times the average annual principal and interest requirements of
the Revenue Bonds and any Additional Bonds which may then be out-
standing, plus the average annual principal and interest require-
ments of the Additional Bonds then proposed to be issued; provided
that in calculating such average annual requirements the amount of
the Reserve Account may be deducted from the principal requirement
of the final year of maturity of the Revenue Bonds, any Additional
Bonds then outstanding, and the Additional Bonds proposed to be
issued;
(c) That the City shall have procured from a firm of
recognized Engineers and Financial Consultants a certificate cer-
tifying that the Gross Revenues of the Airports System during the
3.^cA. -gar immediately preceding the date of the Additional Bonds,
'.ogeth9r with the average annual Gross Revenues estimated to be
derived from the operations of the enlargements, extension and
improvements of the Airports System to be constructed or acquired
with the proceeds of the Additional Bonds proposed to be issued,
are equal to a minimum of two and one-half times the average annual
principal and interest requirements of the Revenue Bonds, any
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Additional Bonds which may then Ve outstanding, and the Additional
Bonds then proposed to be issued; provided, that in calculating such
average annual requirements the amount of the Reserve Account may be
deducted from the principal requirement of the final year of maturity
of these bonds, any Additional Bonds which may then be outstanding,
and the Additional Bonds proposed to be issued;
(d) That the principal and interest shall be schedul-
ed to mature at times corresponding to the months of maturity there-
of scheduled for the bonds authorized by this ordinance;
(e) That the requirements of the laws of the State and
of the Charter of the City have been fully complied with as to issu-
ance, approval and delivery of the Additional Bonds,
21. Other Covenants: The City makes these covenants
for the benefit of the owners and holders of the Revenue Bonds and any
Additional Bonds, if issued, viz:
�s) Trot while any of the Reve,a_ie cones or t_dditionel
Bonds or interest thereon are outstanding and unpaid the City will
continue to operate and maintain the Airports System within the funds
pledgee thereto and will not cause or suffer such curtailment of the
general use of the Airports System as will interfere with the prompt
performance of all of the City's obligations and covenants; and that
the Gross Revenues from any investment in other airport properties
will immediately be subjected to the pledge securing the Revenue
Bonds and any Additional Bonds then outstanding;
(b) That it will duly and punctually pay or cause to
be paid out of the pledged revenues the principal of all of the Revenue
Bonds and Additional Bonds and interest thereon on the dates and at
the places and in the manner mentioned in such bonds and in the coupons
thereto appertaining, according to the true intent and meaning thereof,
and that it will faithfully do and perform, and at all times fully
observe any and all covenants, undertakings and provisions contained
herein or in any of said Bonds;
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(c) That it will not directly or indirectly extend
or assent to the extension of the time of payment of any of the
coupons or claims for interest in respect of any of said bonds by
purchase or funding of such coupons or claims for interest or by
any other arrangement, except under circumstances that if the time
for payment of any such coupons or claims for interest shall be ex-
tended, such coupons or claims for interest shall not be entitled,
in case of any default hereunder to the benefits of the Interest
and Redemption Fund, except subject to the prior payment of the prin-
cipal of all of the said bonds then outstanding and of such portion
of the interest thereon as shall not be represented by such extended
coupons or claims for interest;
(d) That the City has been duly created and is operat-
ing under the laws of the State of Texas and its Home Rule Charter
and has lawful authority to issue the Revenue Bonds and to perform
all covenants and obligations undertaken;
(e) That for the protection of the Municipal Airport
Fund the City will cause to be carried or provided, comprehensive
insurance to the extent of its reasonable value on all insurable
property of the Airports System, and within reasonable and customary
limits liability and property damage insurance;
(f) That the City will duly observe and comply with
all valid requirements of all Governmental authorities relative to
the operation of the Airports System and will maintain and operate
with prudence its general facilities while the Revenue Bonds, Addi-
tional Bonds, or any of them, or any interest thereon, are outstand-
ing ad unpaid;
(g) That the City has not created nor will it create
ary o'tligation against the Gross Revenues which is or can be superior
to or of equal rank with the pledge of Gross Revenues securing the
Revenue Bonds, other than Additional Bonds when issued subject to the
restrictions contained herein, which may be secured by a pledge of
Gross Revenues of equal rank with the pledge securing the Revenue Bonds;
- 19 -
(h) That while any of the Revenue Bonds or Additional
Bonds or interest thereon are outstanding and unpaid the City will
not supply space, services or privileges, without making commensurate
charges therefor, except to the extent actually required and shown to
be required under applicable statutes to supply such space, privi-
leges and services to the Federal Government;
(i) That the City warrants that all of the land con-
tained in the Airports System as now comprehended was acquired from
private owners, and that the City now owns and has good title thereto;
(J) That the City will maintain airport zoning sub-
stantially as is provided in the present zoning ordinance unless and
until some lesser airport zoning protection might become acceptable
under Civil Aeronautics Administration Recommended Standards;
(k) That no contract under which the City will grant
privileges or provide services or space in the Airport Terminal Build-
ings or Airport Terminal Areas (except contracts which provide for a
fixed minimum rental or a percentage of the gross income, whichever
Is larger) shall be for a term exceeding five (5) years unless (1)
they be negotiated on a net rent basis, or (2) they contain previsions
for the renegotiation of the amount of rental payment without limit
at intervals of not more than five years beginning with the date of
any such contract. No contract which provides for a fixed minimum
rental or a percentage of the gross income, whichever is larger, shall
be for a term exceeding ten (10) years, unless it contains provision
for the renegotiation of the fixed minimum rental or of the percentage
of the gross income without limit at the end of the initial ten years,
anc, at the end of each five year period thereafter;
(1) That the City will not dispose of cny of the
properties constituting the Airports System unless ar.:• i-MV 1 such
property has been declared by the City to be surplus and rc lamer
needed for the proper operation of the Airports �r a*�, ":ne proceeds
from the sale of such improvements will be dApooiced tv the Oross
Revenue Account;
- 20 -
(m) (1) That competent personnel for the Airports
System will be employed to administer it in accordance with sound
business principles;
(2) That the City will keep the facilities in good
condition, and will make all needed repairs, renewals, replacements,
extensions and improvements, including non-recurring and periodic
items of maintenance;
(3) That the City Engineer will make an inspection
of the System after the close of each fiscal year, and will prepare
a report as to the condition of the physical facilities thereof and
submit same to the City Manager within thirty (30) days after the close
of each fiscal year. Such report shall include a certificate of the
City Engineer as to satisfactory condition, or as to generally satis-
factory conditions with such exceptions as he shall deem appropriate.
A copy of such report shall be furnished to any bondholder upon written
request and any bondholder may inspect the System at reasonable times
and under reasonable conditions.
(n) That any amounts received as awards as a result of
the taking of all or any part of the Airports System by the lawful
exercise of eminent domain,, if and to the extent that such right can
be exercised against such property of the City, will be placed in the
Municipal Airport Fund.
22. Accounting Records: The City shall cause to be in-
stalled and kept proper records and accounts as provided in this ordinance,
separate from all other records and accounts of the City, in which complete
and correct entries shall be made of all fiscal and financial transactions
relating to the Airports System, such records and accounting shall conform
as nearly as possible to the method of accounting instituted and enforced
in the Department of Finance of the City. The City shall cause an audit to
be made eft-er the close of each fisce.l year by an independent Certified
P,*1!.c Accoi.-n.an*, or firm of Certified Public Accountants, and a report of
such aud .t to be prepared which may be published as a section of the over-
all City audit report or separately therefrom, at the option of the City.
- 21 -
23. Accounting Reports: Within one hundred twenty
(120) days after the close of each fiscal year while any of the Revenue
Bonds or Additional Bonds or interest thereon are outstanding and unpaid,
the City will cause to be mailed one copy each of such audit report to the
Bank of Payment and to the original purchasers of the Revenue Bonds, and
will keep available for examination copies of such current audit report at
the office of the Director of Aviation and the City Secretary. A copy of
the current audit report will be mailed by the City to any subsequent bond-
holder and to the Municipal Advisory Council, Austin, Texas, upon request.
Each such audit report shall include the following:
(a) A balance sheet as of the end of such fiscal year,
including a statement of the cash balances and list of securities, if
any, to the credit of the Municipal Airport Fund, including the ac-
counts created within such Fund, the Interest and Redemption Fund,
and the Reserve Account separately as an account within the Interest
and Redemption Fund;
(b) A detailed statement of the income and expendi-
tures for account of the Airports System for such year, including
statements of the beginning balances, income credited to, expendi-
tures charged against, and ending balances of the Municipal Airport
Fund, the Interest and Redemption Fund, and the Reserve Account, in-
cluding interfund transfers, if any, as herein authorized;
(c) A list of the insurance policies in force at the
end of the fiscal year on the Airports System properties, setting out
as to each policy the amount thereof, the risk covered, the name of
the insurer, and the policy's expiration date;
(d) A statement that the securities specified therefor
have been on deposit as security for the money in the several Funds
prescribed throughout the fiscal year, and a list of the securities,
if an,, in which the reserve portion has been invested;
(e) A certificate by the auditor making said report
that in his opinion the City is not in default as to compliance with
any of the covenants made in this ordinance or any ordinance
- 22 -
subsequently passed authorizing the issuance of other or Additional
Bonds as permitted by this ordinance.
24. Issuance of Refunding Bonds: If it shall be found
desirable to refund part of the Revenue Bonds or Additional Bonds under the
provisions of any law then applicable, such bonds may be refunded (with the
consent of the holders thereof, unless the bonds so refunded are then
optional for redemption and provision for the call and redemption thereof is
duly made) and the refunding revenue bonds so issued shall enjoy complete
equality with the portion of the Revenue Bonds or Additional Bonds which is
not refunded, and the refunding revenue bonds in like principal amount shall
continue to enjoy in all respects the right to security under this ordinance
enjoyed by the bonds refunded thereby, provided, however, that if any of the
bonds are refunded in such manner as to require an increased amount of money
for the payment of principal and interest in any year prior to the maturity
of any of the bonds not then being refunded, then such portion of the bonds
may not be refunded without the consent of the holders of the unrefunded
portion of the bonds maturing during and after the year in which the amount
required for payment of principal and interest is so increased.
25• Remedies in Event of Default: In addition to all
the rights and remedies provided by the laws of the State of Texas, the City
covenants and agrees particularly that in the event the City (a) defaults in
the payment of principal of or interest on any of the Revenue Bonds or
Additional Bonds when due, (b) fails to cause to be made the transfers to
Funds required, or (c) defaults in the observance or performance of any of
its covenants, conditions or obligations, the following among other remedies
shall be available-
(1) The holders of not less than 25% of the bonds
shall be entitled to a writ of mandamus issued by a court of proper
,jurisdiction compelling and requiring the City Council and other offi-
cers of the City to observe and perform any covenants, obligations
or condition prescribed in the ordinance authorizing any such bonds;
and in the event the default involves the failure to pay interest or
principal, or both, when due, the holder of any bond shall be entitled
to seek such relief;
- 23 -
(2) No delay or omission to exercise any right or
power accruing upon any default shall impair any such power or right
or shall be construed to be a waiver of any such default or acquies-
cence therein, and every such right and power may be exercised from
time to time and as often as may be deemed expedient.
The specific remedies herein provided shall be cumulative of all other ex-
isting remedies and the specification of such shall not be deemed to be ex-
clusive.
26. Sale, Lease or other Encumbrance of System: The
City hereby covenants, binds and obligates itself not to sell, mortgage or
in any manner dispose of the Airports System, its properties or any part
thereof, including any and all extensions and improvements thereof, and it
acknowledges and accepts restraint from doing so until the Revenue Bonds and
Additional Bonds shall have been paid in full as to both principal and inter-
est at maturity or under the provisions hereof relating to their redemption
prior to maturity, or until other arrangements have been made for continuance
of payment of principal and interest then outstanding for the full retirement
thereof; provided, however, that (a) this covenant shall not be construed
to prevent the disposal by the City of property which in its judgment has
become inexpedient to use in connection with the Airports System because of
obsolescence or otherwise, and (b) this covenant and the express covenant
of the City to continue to operate and maintain the Airports System in accor-
dance with the provisions of Section 21(a) hereof shall not be construed to
prevent the City entering into a joint operating agreement or otherwise con-
tracting with a municipal or other public corporation for the creation and
operation of an Interregional International Airport or Airports at Amon
Carter Field or elsewhere, but the execution of any such joint operating
agreement or other contract shall not relieve the City of any of its obli-
gations or undertakings hereunder, unless proper and lawful provision is
made for the complete assumption of such obligations and undertakings by
such municipal or other public corporation.
27. Aviation Board: During the time any of the Revenue
Bonds or any Additional Bonds issued hereunder are outstanding and unpaid
the management and control of the Airports System shall be vested in the
Aviation Board established by Ordinance No. 4294, passed by the City Council
- 24 -
of the City of Fort Worth and which Board shall have all of the powers,
rights and duties in the operation of said System as are conferred or im-
posed by said Ordinance No. 4294, or as may be hereafter conferred or
imposed by the City Council by amendment thereto.
28. Appropriation of Particular Funds: Concurrently
with the delivery of the First Installment of Revenue Bonds there shall be
transferred from the Reserve Fund created for the Series 1958 Revenue Bonds
and deposited in the Reserve Account created by this ordinance all moneys
and investments contained in said Series 1958 Revenue Bond Reserve Fund,
and any balance remaining at that time in the Interest and Redemption Fund
created for said Series 1956 Revenue Bonds shall be transferred to the Bond
Fund established by this ordinance.
29. Ordinance to Constitute Contract: That the pro-
visions of this ordinance shall constitute a contract between the City and
the holder or holders from time to time of the Revenue Bonds and after the
issuance of any of said bonds.
30. Delivery of Bonds: After registration by the
Comptroller, Revenue Bonds Numbers One (1) to One Thousand Eight Hundred
Fifty (1,850), both inclusive, aggregating $1,850,000,00 shall be delivered
by him to the holders, or to their order, upon surrender to him of a like
principal amount of City of Fort Worth, Texas, Airport Revenue Bonds, Series
1958, dated April 1, 1958, and Revenue Bonds Numbers One Thousand Eight
Hundred Fifty One (1,851) to Two Thousand Seven Hundred Fifty (2,750), both
inclusive, shall be delivered to the City, or its designee, for delivery to
the proper purchaser or purchasers thereof. The Mayor, City Secretary and
City Treasurer are authorized and directed to do any and all things neces-
sary or convenient to effect delivery of said bonds to the purchaser or pur-
chasers thereof.
31. Sale of Bonds: Bonds Nos. 1851 to 2750, both in-
clusive, are hereby sold at a price of par and accrued interest to White,
Weld and Company, Chicago, Illinois, Dittmar and Company, San Antonio, Texas,
Russ and Company, San Antonio, Texas, and Rauscher, Pierce and Company,
Dallas, Texas.
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32. Emergency: The fact that the City of Fort Worth
is in great need of funds for enlarging, extending, repairing and improving
its Airports System creates an urgency and an emergency, for the immediate
preservation of public health, peace and safety and requires that this
ordinance shall take effect immediately upon and after its passage, and
It is accordingly so ordained.
PASSED AND APPROVED this 9th day of November
196o.
Mayor, City of Fort Worth, Texas.
ATTES
Ci y jecretary, City of Fort Worth,
Texas.
APPROVED AS TO FORM:
City Attorney.
PASSED November 9th 1960.
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CITY OF FORT WORTHemr. ceaklthftr.
TEXAS 4%e.
OFFICE OF THE CITY MANAGER Communication to Mayor and Council No. GO-141
November 9, 1960
r
Honorahle Mayor and
Members of the City Council Re: Ordinance Authorizing
City of Fort Worth Issuance of $2,750,000
Airport Revenue Bonds
Mrs. McKnight and Gentlemen:
Attached hereto is an ordinance authorizing the issuance of airport
revenue bonds totalling $2,750,000, which will be used to refund air-
port revenue bonds presently outstanding totalling $1,850,000, and
provides "incentive bonds" in the amount of $900,000. The proceeds
from the "incentive bonds" will be available to the City for expendi-
tures related to buying out the interests of The Fort Worth Air Terminal
Corporation in the Fort Worth airports system and will make such airport
improvements as approved by the Aviation Board and City Council .
It is necessary that the City Council adopt this ordinance at the Nov-
ember 9th Council meeting in order to finalize this portion of the
planned issuance of $5,000,000 in airport revenue bonds.
Res ec f Ily submitte ,
L. P. Cookingham
City Manager.
LPC:rA
CITY OF FORT WORTH, TEXAS
HE S p,%SENTZTTO THE CITY jNCIL
ER OF TUTS IL&C-C-
WAS PRESEN A U V 9 IncQ.-.-�--
AND WAS APPROVFJ
C itl arY