HomeMy WebLinkAboutOrdinance 4395 ORDIDANcE NO. 4395
AUTHORIZING THE ISSUANCE OF $2,250,000.00 CITY OF
FORT WORTH AIRPORT REVENUE B010S, SERIES 1960-A,
BEARING INTEREST AT THE RATES HEREIN PRESCRIBED,
MATURIPIG SERIALLY, FOR THE PUPPOSE OF PROVIDING
FUNDS TO ACQUIRE THE IMPROVEMENTS CONSTRUCTED BY
FORT WORTH AIR TERMINAL, INC. ON LANDS OWNED BY
THE CITY FOR AIRPORT PURPOSES, AND TO MAKE FURTHER
IMPROVEMENTS 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 SUPPLEMFMT SUCH INCOME TO
ASSURE EFFICIENT OPERATION OF SAID SYSTEM; PROVID-
ING THAT SAID BONES SHALL NOT B3 PAID OUT OF FUNDS
DERIVED FROM TAXATION; ORDAINING OTHER PROVISIONS
RELATING TO THE SUBJECT; AND DECLARING AN EMERGENCY.
WHEREAS, the City of Fort Worth (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 heretofore by ordinance passed
November 9, 1960, authorized the issuance of $2,750,000.00 City of Fort Worth
Airport Revenue Bonds, Series 1960, to refund certain outstanding airport
revenue bonds and to provide funds 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 by Chapter 225, Acts 1957, 55th Legislature
(carried forward as Article 1269J-5 Vernon Annotated Civil Statutes of Texas),
and as authorized by Chapter 13, Acts 1959, 56th Legislature Second Called
Session (carried forward as Article 1269h-2, Vernon Annotated Civil Statutes
of Texas); and
WHEREAS, as contemplated by said ordinance, the City deems
it advisable that the second installment of Revenue Bonds (as defined in said
ordinance) be issued to provide further funds to acquire the improvements con-
structed by Fort Worth Air Terminal, Inc. on said above mentioned city owned
property and to further improve its airport or airports as authorized by said
above cited laws of the State of Texas; and
WHEREAS, said bonds when issued shall be payable from the
Gross Revenues of the Airport System and shall, in all things be on a parity
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and of equal dignity with said Series 1960 Airport Revenue Bonds, above
described;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH:
1. Authorization of Bonds. 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 the revenue bonds of the City of Fort Worth, in the aggregate
amount of Two Million Two Hundred Fifty Thousand ($2,250,000.00) Dollars shall
be issued.
2. Designation - Denomination - Serial Numbers - Interest
Rates: That such bonds to be known as City of Fort Worth Airport Revenue
Bonds, Series 1960-A, (hereinafter called the "Revenue Bonds"), be issued
pursuant to the Constitution and laws of the State 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 Two Hundred Fifty (2,250), both inclusive, in the debomi-
nation of One Thousand ($1,000.00) Dollars each, aggregating Two Million Two
Hundred Fifty Thousand ($2,250,000.00) Dollars, bearing interest payable
April 1, 1961, and semi-annual3y thereafter on October 1 and April 1 of each
year at rates as follows:
Bonds Nos. 1 to both incl., .57a o % per annum;
Bonds Nos. yG/ to % per annum;
Bonds Nos. _Zf L to Agso, " ,20 per annum;
Bonds Nos. to , % per ennum;
Bonds Nos. to , " if r% 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, 1968, $ 50,000.00
51 to 100, " October 1, 1969, 50,000.00
101 to 150, " ItOctober 1, 1970, 50,000.00
151 to 210, " to October 1, 1971, 60,00o.00
211 to 270, " it October 1, 1972, 6o,000.00
271 to 330, " October 1, 1973, 60,00o.00
331 to 390, October 1, 1974, 60,Oo0.o0
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BONUS NUMBERS MATURITY DATES AMOUNTS
391 to 460, both Incl., October 1, 1975, $ 70,000.00
461 to 480, " October t, 1976, 20,000.00
481 to 535, October 1, 1977, 55,000•00
536 to 615, October 1, 1978, 80,000.00
616 to 705, October 1, 1979, 90,000.00
706 to 785, October 1, 1980, 80,000,00
786 to 805, " October 1983, 20,000.00
806 to 845, October 1: 1984, 4o,000.00
846 to 1030, " October 1, 1985, 185,000.00
1031 to 1235, " October 2, 1986, 205,000.00
1236 to 1435, " October 1, 1987, 200,000.00
1436 to 1655, " October 1, 19882 220,000.00
1656 to 1880, October 1, 1989, 225,000.00
1881 to 2250, October 1, 1990, 370,000.00
Each Revenue Bond, at the option of the holder, shall 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 accor-
dance with the provisions for registration printed on the beck 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 payable
in lawful money of the United States of America at The First National Bank of
Fort Worth, in the City of Fort Worth, Texas, (herein defined as the "Bank of
Payment") without exchange or collection charges to the owner or 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 redemption prior
to maturity, the extent and effect of such option being as follows:
Revenue Bonds maturing on and prior to October 1, 1975
shell contain no option of redemption prior to maturity.
In Bonds Numbers 461 to 2250, 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 place of payment and notice shall be publish-
ed in the City of New York, New York. Said notice shall appear in said publi-
cation in at least one issue, the date of said issue being not less then sixty
days prior to the date so fixed for redemption. If any such bond is called
for redemption in said manner and if funds sufficient to pay the redemption
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price shall have been duly placed in the bank of payment by the date fixed for
redemption, it shall not thereafter beer interest. If fewer than all of the
optional bonds are called for redemption, they shall be called in their in-
verse 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 manually by the City Secretary and the corporate seal of the
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 such facsimile signatures
shall have the same effect as if manually placed on said bonds and coupons.
7. Special Obligations: The Revenue Bonds shall con-
stitute special obligations of the City of Fort Worth and each of the bonds
shall contain a provision stating that the holder thereof shall never have
the right to demand payment of said obligation out of funds raised or to be
raised by taxation. The City shall not 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-A
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, and operating under its Home Rule Charter, for value received
hereby acknowledges itself indebted to and promises to pay solely out of the
revenues hereinafter specified, to bearer, or, if this bond be registered,
to the registered holder hereof, on the 1st day of October, 19 , (or
earlier as hereinafter referred to) (Note 1 to printer) the principal sum of
ONE THOUSAND DOLLARS
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in lawful money of the United States of America, (Note 2 to printer) with
interest thereon from date hereof at the rate of
( �i) 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
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 System as defined
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 regis-
tration of ownership.
This bond is one of a series of bonds (defined in the
Bond Ordinance as "City of Fort Worth Airport ]%venue Bonds, Series 1960-A")
of like tenor and effect except as to serial number, maturity date, interest
rate, and option of redemption, numbered One (1) to Two Thousand Two Hundred
Fifty (2,250), both inclusive, of the denomination of One Thousand ($1,000.00)
Dollars each, aggregating Two Million Two Hundred Fifty Thousand ($2,250,000.00)
Dollars, issued by the City of Fort Worth, Texas, 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
Cystem") in accordance with the Constitution and laws of the State of Texas
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and the Charter of said City and pursuant to the Bond Ordinance passed by the
City Council, duly recorded in the minutes of the City Council.
(Note 3 to Printer)
(The City reserves the right to redeem this bond prior
to maturity on October 1, 1975, or on any interest payment date thereafter,
at a price of per and accrued interest to date so fixed for redemption. Sixty
days' notice of such call is to be given in writing to the place of payment
and said notice is to be published in a financial publication 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 the date so fixed for redemption. If such bond is called for re-
demption in said manner and if funds sufficient to pay the redemption price
shall have been duly placed in the bank of payment by the date fixed for re-
demption, it shall not thereafter beer interest. If fewer than all of the
optional bonds are called for redemption, they shall be 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 one
are special obligations of the City of Fort Worth, and together with City of
Fort Worth Airport Revenue Bonds, Series 1960, are 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
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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
with the bonds of this Series 1960-A and Series 1960, above mentioned 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 limi-
tations set forth in the Bond Ordinance.
AND IT IS HEREBY CERTIFIED AND RECITED that the issuance
of this bond and the series of which it i! a part is duly authorized by law,
including Chapter 43, Acts of the 53rd Legislature, First Called Session, 19514,
as amended, and Chapter 13, Acts 1959, 56th Legislature, Second Called Session,
and the Charter of the City; that all acts, conditions 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 re-
quired 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 pro-
vision 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 WHEREOF 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.
APPROVED AS TO FORM AND LEGALITY:
City Attorney, City of Fort Worth,
Texas.
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(To be printed on back of each bond)
PROV15IONS FOR REGISTRATION
(No writing to be placed hereon exjept
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 below, and this bond roay 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) months' interest due that day on City of Fort Worth
Airport Revenue Bond, Series 1960-A, bearing the number hereinafter speci-
fied, 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 GO , both incl., S oa % per annum;
Bonds Nos. yG/ to C#S , " ��0 per annum;
Bonds Nos. g to g 7 5 o , " „z o$ per annum;
Bonds Nos. to , " $ per annum;
Bonds Nos. to , " % per annum.
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 sesl of office at Austinp Texas,
Comptroller o Public Accounts of the
State of Texas.
(SEAL)
11. Approval by Attorney General and its Effect.
Registratiodt That the Mayor shall be authorized to take glad have charge of
all necessary records penning 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 Geenerai 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 sold
Comptroller shall be affixed to each of said bonds.
12. Definitions: For all purposes, unless at the speci-
fied point of use a different meaning is clearly indicated the following
definitions of terms are applicable to-wit:
"Revenue Bonds" means the $2,750,000.00 City of Fort
Worth Airport Revenue Bonds, Series 1960, authorized in the ordinance
passed November 9, 1960, and the $2,250,000.00 of bonds authorized by
this ordinance;
"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 Section 20 hereof;
"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
property or property used for airport purposes heretofore or here-
after acquired and used in connection with any joint operating
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agreement or contract with a municipal or other public corporation
for the creation and operation of an Interregional Airport 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 Hell of the City of Fort Worth, at Fort Worth,
Texas;
"City" means the City of Fort Worth, acting in its
corporate capacity;
"City (buncil" 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 utiliz-
ed 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 obli-
gations for interest payments and principal repayment on the bonds
or other instruments of indebtedness created to finance the improve-
ment which is the subject of the lease. Without limiting the gen-
erality of the foregoing, unless especially delimited, "Gross
Revenues" will include all of the income from the ownership and
operation of the Airports System including landing fees and charges,
ground rental, space rentals in buildings, charges of every character
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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 utilization of the Airports
System and the making of all currently needed repairs and shall in-
clude an operating reserve in an amount certified by the Director of
Aviation of the System as the reasonable amount necessary for one
month's cost of operation and maintenance of the Airports System.
"Operating Expenses" shall not include any allowance for depreciation,
or renewals or replacements of capital assets of the System;
"Municipal Airport Fund" means the special fund here-
tofore created pursuant to Article 46d-11, Vernon's Revised Civil
Statutes of Texas, 1925, as amended, into which the revenues obtain-
ed 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
for the payment of the Revenue Bonds and any Additional Bonds which may be
issued in accordance with Section 20 hereof, 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, eetab-
lash, maintain and collect such rates, fees, rentals and other charges for
the use of the services and facilities of the Airports 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 hereinafter
required to be established, and (3) which, together with the proceeds of the
ad valorem tax levied in Section 15 hereof, will pay all Operating Expenses
of the System. The rates, fees, rentals and other charges in effect at the
time of the sale and delivery of the Revenue Bonds will not be changed so as
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to reduce the aggregate yield from such rates, fees, rentals and charges unless
and until a report shall have been filed with the City by an independent firm
of Certified Public Accountants, based on the experience record of the Air-
ports System, demonstrating that such change can be made without impairing any
of the City's obligations hereunder.
15. Pledge to Payment of Operating Expenses: The Gross
Revenues remaining after provision has been made for the payments required by
Section 17 of this Ordinance and Section 17 of the ordinance passed November
9, 1960, 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 such 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 Hundred ($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, provided, 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: All receipts from the owner-
ship and operation of the Airports System, included within the definition of
Gross Revenues, promptly after coming into the possession of the City or its
employees shall be deposited in the "Gross Revenue Account", created by the
ordinance passed November 9, 1960. All proceeds from the collection of the
tax levied under the provisions of Section 15 of this ordinance shall be de-
posited as collected in the "Airport Special Tax Account", created by said
ordinance passed November 9, 1960.
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 Bonds, and Additional
Bonds, if any, outstanding hereunder.
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The moneys in the Airport Special Tax Account, together
with any moneys remaining in the Gross Revenue Account after proper appli-
cation thereof to the payments into the Interest and Redemption Fund, shall
be used to pay Operating Expenses of the System.
17. Interest and Redemption Fund: It shall be the duty
of the City, on or before the lgth day of each month, to transfer from the
Gross Revenue Account to the Bond Fund the following amounts:
(a) A sum in equal installments sufficient to pay the
amount of interest scheduled to mature on the Revenue Bonds on the
next and each succeeding semi-annual interest payment date and be-
ginning on the 19th 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 maturity date; and
(b) Such amount to the credit of the Reserve Account
as shall be equal to 20% 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, and said or-
dinance passed November 9, 1960, provided that whenever said Reserve
Account is reduced below such amount, such payments shall be resumed
and continued until such amount has been restored. The Reserve Account
is hereby irrevocably pledged for the purpose of and shall be used
solely to pay principal of and interest on the Revenue Bonds falling
due at any time when there is not sufficient 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, Whenever Additional Bonds are issued, the aggre-
gate amount to be maintained 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 Addition-
al Bonds then outstanding and the Additional bbnds then proposed to
be issued.
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18. Investment of Funds: Money in the Reserve Account
may be invested in direct obligations of or obligations guranteed by the
United States. No investments shall be made in such obligations maturing
beyond the final maturity date of the Revenue Bonds. Any obligations in
which money is so invested shall be kept in trust by the City, and a suffi-
cient amount thereof shall be promptly sold and the proceeds of sale applied
to the making of payments required to be made from the Reserve Account, when-
ever such payments are necessary to be made and to the extent money in the
Reserve Account may be insufficient to make such payment.
19. Municipal Airport Fund Balances: Money remaining
in the Gross Ibvenue Account at the close of business on September 30 of any
year after making adequate provision for the funds prescribed and after taking
care of all other legal obligations, if aror, against the Municipal Airport
Fund and after retaining therein an amount certified by the Director of
Aviation of the System as sufficient to pay estimated expenses of Operation
for a period of two months (including the amount in the Operating reserve),
may be utilized by the City for any one or more of the following:
(a) capital improvements to the Airports System;
(b) purchase or redemption of the Revenue Bonds
prior to scheduled maturity;
(c) payment into the Interest and Redemption Fund
or the Reserve Account;
(d) payment of principal of and interest on any
general obligation bonds issued by the City
for airport purposes.
20. Additional Bonds: The City reserves the right to
issue Additional Bonds 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
Independent Certified Public Accountants a certificate showing that
the average of the Gross Revenues of the Airports System during the
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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 outstanding, plus
the average annual principal and interest requirements of the Addi-
tional Bonds then proposed to be issued; provided that in calculat-
ing 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 certify-
ing that the Gross Revenues of the Airports System during the fiscal
year immediately preceding the date of the Additional Bonds, together
with the average annual Gross Revenues estimated to be derived from
the operations of the enlargements, extensions 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 Additional Bonds which may then
be 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 re-
quirement of the final year of maturity of these bonds, any Addition-
al 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.
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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:
(a) That while any of the Revenue Bonds or Additional
Bonds or interest thereon are outstanding and unpaid the City will
continue to operate and maintein the Airports System within the fonds
pledged 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;
(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;
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(d) That the City has been duly created and is operst-
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, Additional
Bonds, or any of them, or any interest thereon, are outstanding and
unpaid;
(g) That the City has not created nor will it create
any obligation 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;
(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;
(3) That the City will maintain airport zoning sub-
stantially as is provided in the present zoning ordinance unless and
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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-
ingsor 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 provisions
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,
and at the end of each five year period thereafter;
(1) That the City will not dispose of any of the
properties constituting the Airports System unless and until such
property has been declared by the City to be surplus and no longer
needed for the proper operation of the Airports System. The proceeds
from the sale of such improvements will be deposited in the Gross
Revenue Account;
(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
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close of each fiscal year. Such report shall include a certificate
of the City Engineer as to satisfactory condition, or as to generally
satisfactory conditions with such exceptions as he shall deem appro-
priate. 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 arty 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 after the close of each fiscal year by an independent Certified
Public Accountant or firm of Certified Public Accountants, and a report of
such audit 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.
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:
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(a) A balance sheet as of the end of such fiscal
year, including a statement of the cash balances and list of securi-
ties, if any, to the credit of the Municipal Airport Fund, including
the accounts 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 any, 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 sub-
sequently 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 pert 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
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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 then 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;
(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.
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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
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 imposed by said
Ordinance No. 4294, or as may be hereafter conferred or imposed by the City
Council by amendment thereto.
28. Ordinance to Constitute Contract: That the pro-
visions of this ordinance shall constitute a contract between the City and
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the holder or holders from time to time of the Revenue Bonds and after the
issuance of any of said bonds.
29. Delivery of Bonds: After registration by the
Comptroller, the bonds herein authorized 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 necessary or convenient to effect delivery of said
bonds to the purchaser or purchasers thereof.
30. Sale of Bonds: The sale of said bonds to rJie syn d"cate.
Aedde.d h� JOA, JV"Veeiv "� Go. at a price of par and accrued in-
terest to date of delivery, plus a premium of $ —o - , being the
highest and best bid, is hereby in all things ratified and confirmed, and
the officials, employees and agents of the City are authorized and directed
to take such actions and execute such instruments and documents as may be
necessary to make prompt delivery of said bonds to the purchasers and receive
the proceeds thereof for the benefit of the City.
31. 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 18th day of November, 1960.
2co L m 2?z
Mayor, City of Fort Worth, Texas.
ATTEST:
City Secretary, City of Fort Worth,
Texas.
APPROVED AS TO FORM AND LEGALITY�:�
City Attorney.
PASSED November 18, 1960.
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