HomeMy WebLinkAboutOrdinance 3597 ORDINANCE NO. +rY 7
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF REVENUE BONDS OF
THE CITY OF FORT WORTH IN THE AGGREGATE PRINCIPAL AMOUNT OF
ONE MILLION, NINE HUNDRED AND FIFTY THOUSAND DOLLARS ($1,-
950,000.00), IN ADDITION TO THREE INSTALLMENTS OF REVENUE
BONDS AGGREGATING ELEVEN MILLION, FIVE HUNDRED THOUSAND DOL-
LARS ($11,500,000.00) HERETOFORE ISSUED AND SOLD OUT OF AN
AUTHORIZED ISSUE OF FIFTEEN MILLION DOLLARS ($15,000,000.00)
AND IN ADDITION TO EIGHTEEN MILLION DOLLARS ($18,000,000.00)
OF REVENUE BONDS PREVIOUSLY AUTHORIZED AND ISSUED, TO FINANCE
THE IMPROVEMENT AND EXTENSION OF THE CITY'S WATER AND SEWER
SYSTEMS; PROVIDING FOR THE PAYMENT OF SUCH BONDS SOLELY FROM
THE REVENUES OF SUCH SYSTEMS; PLEDGING A PORTION OF SUCH
REVENUES TO SUCH PAYMENT; ENTERING INTO CERTAIN COVENANTS
AND AGREEMENTS WITH RESPECT TO THE OPERATION OF SUCH SYSTEMS
AND THE APPLICATION OF THE REVENUES DERIVED THEREFROM; AND
REPEALING ALL ORDINANCES IN CONFLICT HEREWITH.
WHEREAS, the City of Fort Worth (hereinafter referred to as City)
has established, and for many years has maintained and operated, and is
now maintaining and operating a system (hereinafter referred to as the
City Slater System) used or useful to obtain a supply of water for said City
and its inhabitants and to conserve, treat and dispose of such water, and
also a system (hereinafter referred to as the City Sewer System) used or
useful for the collection, treatment and disposal of sewage and waste; and,
WHEREAS, at an election duly called and held in the City on January
25, 1949, a majority of the qualified voters of the City voted in favor of
each of the following two propositions:
PROPOSITION NO. 1
Shall the City of Fort Worth, Texas, through its City Coun-
cil, issue its negotiable coupon bonds in the principal sum of
Twelve Million, Four Hundred Thousand Dollars ($12,400,000.00)
for the purpose of improving, extending and enlarging the Water-
works System of said City, said bonds to be issued at one time
or in installments from time to time as the City Council shall
determine, the bonds of each installment being payable serially
as may be determined by the City Council, so that the last ma-
turing bonds shall become payable within forty (40) years from
the date thereof, and bearing interest at a rate not to exceed
four per cent (4%) per annum from the date thereof, payable semi-
annually, and to provide for the payment of principal and in-
terest on said bonds by pledging the net revenues from the opera-
tion of the Waterworks System of said City, or in the event that
the City Council be authorized to issue Sewer System revenue
bonds as submitted in Proposition No. 2, to be secured addi-
tionally by a pledge of the net revenues from the operation of
said Sewer System?
PROPOSITION NO. 2
Shall the City of Fort Worth, Texas, through its City Coun-
cil, issue its negotiable coupon bonds in the principal sum of
Five Million, Six Hundred Thousand Dollars ($5,60o,0o0.00) for
the purpose of improving, extending and enlarging the existing
Sewer System of said City, said bonds to be issued at one time
or in installments from time to time as the City Council shall
determine, the bonds of each installment being payable serially
as may be determined by the City Council, so that the last ma-
turing bonds shall become payable within forty (40) years from
the date thereof, and bearing interest at a rate not to exceed
four per cent (4%) per annum from the date thereof, payable
semi-annually, and to provide for the payment of principal and
interest on said bonds by pledging the net revenues from the
operation of the Sewer System of said City, or in the event
that the City Council be authorized to issue Waterworks System
revenue bonds as submitted in Proposition No. 1, to be secured
additionally by a pledge of the net revenues from the operation
of said Waterworks System?;
and,
WHEREAS, the ordinance calling said election provided that if both
propositions were duly approved at said election, the City Council could,
at its option, combine the Twelve Million, Four Hundred Thousand Dollars
($12,400,000.00) Waterworks System Revenue Bonds and the Five Million, Six
Hundred Thousand Dollars ($5,600,000.00) Sewer System Revenue Bonds into
one issue and pledge the Net Revenues from the operation of both the Water-
works System and the Sewer System to the payment of the principal of and
the interest on said entire issue of bonds; and,
WHEREAS, the City Council of the City of Fort Worth, Texas, by ordi-
nance duly adopted on the 20th day of April, 1949, did authorize the issu-
ance of Two Million Dollars ($2,000,000.00) of Water and Sewer Revenue Bonds
combined in one issue, said bonds being numbered from one (1) to two thou-
sand (2,000), both inclusive; and the said City Council, by ordinance duly
adopted on the 14th day of September, 1949, did authorize the issuance of
Two Million, Six Hundred and Fifty Thousand Dollars ($2,650,000.00) of Water
and Sewer Revenue Bonds combined in one issue, said bonds being numbered
from two thousand and one (2,001) to forty-six hundred and fifty (4,650),
both inclusive; and the said City Council, by ordinance duly adopted on the
28th day of February, 1951, which ordinance was amended on the 7th day of
March, 1951, did authorize the issuance of Six Million Dollars ($6,000,000.0o)
of Water and Sewer Revenue Bonds combined in one issue, said bonds being num-
bered from forty-six hundred and fifty-one (4,651) to ten thousand, six hun-
dred and fifty (10,650). both inclusive; and the said City Council, by ordi-
nance duly adopted on the 27th day of February, 1952, did authorize the issu-
ance of Four Million, Two Hundred and Fifty Thousand Dollars ($4,250,000.00)
of Water and Sewer Revenue Bonds combined in one issue, said bonds being
numbered from ten thousand, six hundred and fifty-one (10,651) to fourteen
thousand, nine hundred (14,9oo), both inclusive; and the said City Council,
by ordinance duly adopted on the 18th day of February, 1953, did authorize
the issuance of Three Million, One Hundred Thousand Dollars ($3,100,000.00)
of Water and Sewer Revenue Bonds combined in one issue, said bonds being
numbered from fourteen thousand, nine hundred and one (14,901) to eighteen
thousand (18,000), both inclusive; and,
WHEREAS, it was provided in all of the ordinances authorizing the
issuance of said bonds pursuant to the authority granted by a majority of
the resident, qualified electors of the City owning taxable property in the
City, and who had duly rendered same for taxation, voting at an election
held for that purpose on January 25, 1949, that the City of Fort Worth might
issue additional bonds payable from the Debt Service Fund created by the
First Issue Bond Ordinance and secured, equally and ratably with the bonds
authorized by said ordinances, by a pledge of the Revenues of the Systems
in the event the City shall have been authorized by law to issue them and
conditioned
(a) That the additional bonds shall be issued for the
purpose of improving, extending or enlarging the Systems;
(b) That at the time the additional bonds are issued,
the City shall not be in default in making any payment re-
quired by Section 404, 405 or 406 of each of said ordinances;
(c) That the amount of the average annual Net Revenues
of the Systems computed by dividing by two the Net Revenues
for the two fiscal years immediately preceding the time of
issuance of the additional bonds shall be not less than 150%
of the maximum aggregate amount of principal and interest
payable in any future fiscal year with respect to the bonds
and additional bonds then outstanding (including issued bonds
as hereinafter defined) and the additional bonds about to be
issued; and
(d) That the principal of the additional bonds shall be
made payable on March let of the years in which such principal is
payable, and that the interest on the additional bonds shall be
made payable semi-annually on September let and March let;
and,
WHEREAS, a majority of the resident, qualified electors of the City
owning taxable property in the City, and who'had duly rendered same for
taxation, voting at an election held for that purpose on January 26, 1954,
voted in favor of each of the two following propositions:
PROPOSITION NO. l
Shall the City of Fort Worth, Texas, through its City Coun-
cil, issue its negotiable coupon bonds in the principal sum
of Ten Million Dollars ($10,000,000.00), in addition to bonds
of the aggregate principal amount of Twelve Million, Four Hun-
dred Thousand Dollars ($12,1+00,000.00) heretofore issued by
the City pursuant to a proposition adopted by a majority vote
of the qualified electors of the City at a special election
held on January 25, 1949, for the purpose of improving, ex-
tending and enlarging the Waterworks System of said City,
said bonds to be issued at one time or in installments from
time to time as the City Council shall determine, the bonds
of each installment being payable serially as may be determined
by the City Council, so that the last maturing bonds shall .
_,,become payable within forty (40) years from the date thereof,
and bearing interest at a rate not to exceed four and one-half
per cent (4-1/2%) per annum from the date thereof, payable semi-
annually, and to provide for the payment of principal and inter-
est on said bonds by pledging the net revenues from the opera-
tion of the Waterworks System of said City, or in the event
that the City Council be authorized to issue Sewer System
revenue bonds as submitted in Proposition No. 2, to be secured
additionally by a pledge of the net revenues from the operation
of said Sewer System?
PROPOSITION NO. 2
Shall the City of Fort Worth, Texas, through its City Coun-
cil, issue its negotiable coupon bonds in the principal sum of
Five Million Dollars ($5,000,000.00), in addition to bonds of
the aggregate principal amount of Five Million, Six Hundred
Thousand Dollars ($5,600,000.00) heretofore issued by the City
pursuant to a proposition adopted by a majority vote of the
qualified electors of the City at a special election held on
January 25, 1949, for the purpose of improving, extending and
enlarging the existing Sewer System of said City, said bonds
to be issued at one time or in installments from time to time
as the City Council shall determine, the bonds of each install-
ment being payable serially as may be determined by the City
Council, so that the last maturing bonds shall become payable
within forty (40) years from the date thereof, and bearing in-
terest at a rate not to exceed four and one-half per cent
(4-1/2%) per annum from the date thereof, payable semi-annually,
and to provide for the payment of principal and interest on
said bonds by pledging the net revenues from the operation of
the Sewer System of said City, or in the event that the City
Council be authorized to issue Waterworks System revenue bonds
as submitted in Proposition No. 1, to be secured additionally
by a pledge of the net revenues from the operation of said
Waterworks Systeml'
and,
WHEREAS, the ordinance calling said election provided that if both
propositions were duly approved at said election, the City Council could,
at its option, combine the Ten Million Dollars ($10,000,000.00) Waterworks
System Revenue Bonds and the Five Million Dollars ($5,000,000.00) Sewer
System Revenue Bonds into one issue and pledge the Net Revenues from the
operation of both the Waterworks System and the Sewer System to the payment
of the principal of and the interest on said entire issue of bonds; and,
WHEREAS, the City Council of the City of Fort Worth, Texas, by ordi-
nance duly adopted on the loth day of March, 1954, did authorize the issu-
ance of Three Million Dollars ($3,000,000.00) of Water and Sewer Revenue
Bonds combined in one issue, said bonds being numbered from one (1) to three
thousand (3,000). both inclusive; and the said City Council, by ordinance
duly adopted on the 23rd day of February, 1955, did authorize the issuance
of Three Million, Five Hundred Thousand Dollars ($3,500,000.00) of Water
and Sewer Revenue Bonds combined in one issue, said bonds being numbered
from three thousand and one (3,001) to sixty-five hundred (6,500), both in-
clusive; and the said City Council, by ordinance duly adopted on the 29th
day of February, 1956, did authorize the issuance of Five Million Dollars
($5,000,000.00) of Water and Sewer Revenue Bonds combined in one issue, said
bonds being numbered from sixty-five hundred and one (6,501) to eleven thou-
sand, five hundred (11,500), both inclusive; and,
WHEREAS, it was provided in all of the said ordinances authorizing
the issuance of said bonds pursuant to the authority granted by a majority
of the resident, qualified electors of the City owning taxable property in
the City, and who had duly rendered same for taxation, voting at an election
held for that purpose on January 26, 1954, that the City of Fort Worth might
issue additional bonds payable from the Debt Service Fund created by the
First Issue Bond Ordinance and secured, equally and ratably with the bonds
authorized by said ordinances, by a pledge of the Revenues of the Systems
in the event the City shall have been authorized by law to issue them and
conditioned
v
(a) That the additional bonds shall be issued for the pur-
pose of improving, extending or enlarging the Systems;
(b) That at the time the additional bonds are issued, the
City shell not be in default in making any payment required
by Section 404, 405 or 406 of each of said ordinances;
(c) That the amount of the average annual Net Revenues
of the Systems computed by dividing by two the Net Revenues
for the two fiscal years immediately preceding the time of
issuance of the additional bonds shall be not less than
150% of the maximum aggregate amount of principal and interest
payable in any future fiscal year with respect to the bonds
and additional bonds then outstanding (including issued bonds
as hereinafter defined) and the additional bonds about to be
issued; and
(d) That the principal of the additional bonds shall be
made payable on March 1st of the years in which such principal
is payable, and that the interest on the additional bonds shall
be made payable semi-annually on September 1st and March 1st;
and,
WHEREAS, the City Council has found and determined that the revenue
bonds now proposed to be issued shall be for the purpose of improving or
extending such City Water and Sewer Systems; that the City is not now, and
has not been, in default in the payment of any swn required in any of the
provisions of said ordinances authorizing the issuance of Two Million Dol-
lars ($2,000,000.00) Water and Sewer Revenue Bonds, adopted the 20th day
of April, 1949, and authorizing the issuance of Two Million, Six Hundred
and Fifty Thousand Dollars ($2,650,000.00) Water and Sewer Revenue Bonds,
adopted the 14th day of September, 1949, and authorizing the issuance of
Six Million Dollars ($6,000,000.00) Water and Sewer Revenue Bonds, adopted
the 28th day of February, 1951, which ordinance was amended the 7th day of
March, 1951, and authorizing the issuance of Four Million, Two Hundred and
Fifty Thousand Dollars ($4,250,000.00) Water and Sewer Revenue Bonds,
adopted the 27th day of February, 1952, and authorizing the issuance of
Three Million, One Hundred Thousand Dollars ($3,100,000.00) Water and Sewer
Revenue Bonds, adopted the 18th day of February, 1953, and authorizing
the issuance of Three Million Dollars ($3,000,000.00) Water and Sewer Reve-
nue Bonds, adopted the loth day of March, 1954, and authorizing the issu-
ance of Three Million, Five Hundred Thousand Dollars ($3,500,000.00) Water
and Sewer Revenue Bonds, adopted the 23rd day of February, 1955, and au-
thorizing the issuance of Five Million Dollars ($5,000,000.00) Water and
Sewer Revenue Bonds, adopted the 29th day of February, 1956; that the amount
of the average annual Net Revenues of the Systems computed by dividing by
two the Net Revenues for the two fiscal years immediately preceding the time
of issuance of the additional bonds is far in excess of 150% of the maximum
aggregate amount of principal and interest payable in any future fiscal year
with respect to the bonds now outstanding and the additional bonds now pro-
posed to be issued; and that the principal of the additional bonds shall be
made payable on March lst of the years in which such principal is payable,
and the interest on the additional bonds shall be made payable semi-annually
on September let and March let of each year, respectively; and,
WHEREAS, Eight Million, 0ne Hundred and Fifty Thousand Dollars
($8,150,000.00) of said bonds authorized by said ordinances adopted on
April 20, 1949, September 14, 1949, February 28, 1951, which ordinance was
amended on March 7, 1951, February 27, 1952, February 18, 1953, March 10,
1954, February 23, 1955, and February 29, 1956, were issued for the purpose
of improving, extending and enlarging the City Sewer System and Twenty-one
Million, Three Hundred and Fifty Thousand Dollars ($21,350,000.00) of said
bonds authorized by said ordinances were issued for the purpose of improving,
extending and enlarging the City Water System; and,
WHEREAS, it is deemed wise and expedient by the City Council of the
City of Fort Worth, Texas, in the exercise of the discretion reposed in it
by law, that One Million, Nine Hundred and Fifty Thousand Dollars ($1,950,-
000.00) of said bonds out of the issue of Fifteen Million Dollars ($15,000,-
000.00) authorized by a vote of the qualified voters of the City of Fort Worth
in the election held on January 26, 1954, in addition to the Eleven Million,
Five Hundred Thousand Dollars ($11,500,000.00) of said bonds heretofore is-
sued and sold out of said authorized issue of Fifteen Million Dollars ($15,-
000,000.00) and in addition to the Eighteen Million Dollars ($18,OOo,000.o0)
of said bonds heretofore issued and sold pursuant to ordinances authorized
by a majority of the resident, qualified electors of the City owning taxable
property in the City, and who had duly rendered the same for taxation, vot-
ing at an election held for that purpose on the 25th day of January, 1949,
be issued in bonds at this time, said bonds to be issued being a part of
Series 86, designated "Water and Sewer Revenue Bonds"; and,
WHEREAS, the following terms, where used in this ordinance, unless
the context shall indicate another or different meaning or intention, are
to be construed and used and are intended to have meanings as follows:
(1) "City Water System" and "City Sewer System" mean
the systems described in the first paragraph of
this ordinance.
(2) "Bonds" shall mean the bonds described in Section
101 of this ordinance.
(3) "Additional Bonds" shall mean the bonds hereafter
issued as provided in Section 109 of this ordinance.
(4) "Issued Bonds" shall mean the Issued Bonds described
in Section 401 of this ordinance.
(5) 'Operating Expenses" shall mean Operating Expenses
as defined in Section 401 of this ordinance.
(6) "Revenues" and "Net Revenues" shall mean, respective-
ly, Revenues and Net Revenues as defined in Section
401 of this ordinance.
(7) "First Issue Bond Ordinance" shall mean the ordinance
hereinbefore described, adopted by the City Council
on April 20, 1949.
-(8) "Operating Fund" shall mean the fund described in Sec-
tion 402 of this ordinance.
(9) "Debt Service Fund" and "Current Account" and "Reserve
Account" shall mean the Debt Service Fund, the Current
Account and the Reserve Account described in Section 405
of this ordinance.
(10) 'Operation Reserve Account" shall mean the Operation
Reserve Account described in Section 406 of this ordi-
nance.
(11) "Issuance Date" shall mean the first day on which any
of the Bonds are delivered.
(12) "Year" or "Fiscal Year" shall mean the yearly period
beginning October 1 in each year.
NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS:
ARTICLE I.
AUTHORIZATION AND DESCRIPTION OF BONDS
Section 101. Bonds of the City, being a part of the bonds referred
to in Proposition No. 1 submitted at said election held on January 26, 1954,
set forth in the preamble of this ordinance, shall be issued at this time
in the aggregate principal amount of One Million, Fifty Thousand Dollars
($1,050,000.00) for the purpose of improving and extending the City Water
System, and bonds of the City, being a part of the bonds referred to in
Proposition No. 2 submitted at said election held on January 26, 1954, set
forth in the preamble of this ordinance, shall be issued at this time in the
aggregate principal amount of Nine Hundred Thousand Dollars ($900,000.00)
for the purpose of improving and extending the City Sewer System. All of
such bonds (hereinafter referred to as the Bonds) shall constitute a single
issue to be known as Water and Sewer Revenue Bonds, Series 86. The Bonds
shall be payable solely from the Net Revenues of the Systems, as defined in
Section 401 of this ordinance. The credit of the City shall not be pledged
for the payment of the Bonds. The holder or holders of the Bonds shall never
have the right to demand payment thereof out of any funds raised or to be
raised by taxation.
Section 102. The Bonds are hereby authorized and shall be issued
pursuant to the Constitution and statutes of the State of Texas, including
particularly Articles 1111 to 1118, inclusive, of the 1925 Revised Civil
Statutes of Texas, as amended.
Section 103. The Bonds shall be nineteen hundred and fifty (1,950)
in number, numbered from eleven thousand, five hundred and one (21,501) to
thirteen thousand, fmur hundred and fifty (13,450). inclusive, and of the de-
nomination of One Thousand Dollars ($1,000.00) each, shall be dated March 1,
1957, and shall mature serially in numerical order on March 1st of each year,
as follows:
Year Amount Bond Numbers
1958 $78,000.00 11,501 to 11,578
1959 78,000.00 11,579 to 11,656
196o 78,000.00 11,657 to 11,734
1961 78,000.00 11,735 to 11,812
1962 78,000.00 11,813 to 11,890
1963 78,000.00 11,891 to 11,968
1964 78,000.00 11,969 to 12,046
199665 78,000.00 12,o47 to 12,124
78,000.00 12,125 to 12,202
1967 78,000.00 12,203 to 12,280
1968 78,000.00 12,281 to 12,358
1969 78,000.00 12,359 to 12,436
1970 78,000.00 12,437 to 12,514
1971 78,000.00 12,515 to 12,592
1972 78,000.00 12,593 to 12,670
1973 78,000.00 12,671 to 12,748
1974 78,000.00 12,749 to 12,826
1975 78,000.00 12,827 to 12,904
1976 78,000.00 12,905 to 12,982
1977 78,000.00 12,983 to 13,060
1978 78,000.00 13,o61 to 13,138
1979 78,000.00 13,139 to 13,216
1980 78,000.00 13,217 to 13,294
1981 78,000.00 13,295 to 13,372
1982 78,000.00 13,373 to 13,450
The interest on each Bond shall be payable semi-annually on September 1st
and March 1st of each year until the City's obligation with respect to the
payment of the principal sum thereof shall be discharged. The Bonds shall
be payable, with respect to both principal and interest, at the principal
office of The Hanover Bank, in the Borough of Manhattan, City and State of
New York, in such coin or currency of the United States of America, as at
the time of payment shall be legal tender for the payment of public and pri-
vate debts. The Bonds which mature subsequent to March 1, 1968, shall be re-
deemable prior to their respective maturities, as provided in Article II of
this ordinance.
Section 104. The Bonds numbered from eleven thousand, five hundred
and one (11,501) to eleven thousand, nine hundred and sixty-eight (11,968),
inclusive, shall bear interest at the rate of four and fifty hundredths per
centum (4.50%) per annum; the Bonds numbered from eleven thousand, nine hun-
dred and pixty?nine (11,969) to twelve thousand and forty-six (12,046), in-
clusive, shall bear interest at the rate of three and fifty hundredths per
centum (3.50%) per annum; the Bonds numbered from twelve thousand and forty-
seven (12,047) to twelve thousand, three hundred and fifty-eight (12,358)., in-
clusive, shall bear interest at the rate of three and ten-hundredths per centum
(3.10%) per annum; the Bonds numbered from twelve thousand, three hundred
and fifty-nine (12,359) to twelve thousand, nine hundred and four (12,904),
inclusive, shall bear interest at the rate of three and twenty-five-hundredths
per centum (3.25%) per annum; and the Bonds numbered from twelve thousand,
nine hundred and five (12,905) to thirteen thousand, four hundred and fifty
(13,450), inclusive, shall bear interest at the rate of three and thirty-
hundredths per centum (3.30%) per annum.
Section 105. The Bonds shall be payable to bearer, without privilege
of registration. They shall be signed by the Mayor of the City, attested
by the City Secretary, and approved as to form and legality by the City
Attorney. The corporate seal of the City shall be affixed to or impressed
upon each Bond. The interest coupons representing interest payable on the
Bonds shall bear the facsimile signatures of the Mayor and City Secretary.
Each successive holder of each Bond, and each successive holder of each of
the coupons attached to the Bonds, is conclusively presumed to forego and re-
nounce his equities in favor of subsequent holders for value without notice,
and to agree that such Bond and each of such coupons may be negotiated by
delivery by any person having possession thereof, howsoever such possession
may have been acquired, and that any holder who shall have taken such Bond
or any of such coupons from any person for value and without notice thereby
has acquired absolute title thereto, free from any defenses enforceable
against any prior holder and free from all equities and claims of ownership
of'any such prior holder.
Section 106. The Bonds, the interest coupons to be attached to the
Bonds, and the certificate of the Comptroller of Public Accounts of the
State of Texas, and the certificate of the City Attorney to be endorsed on
the Bonds shall be in substantially the following forms, respectively, with
the proper insertions, substitutions and variations as in this ordinance pro-
vided or permitted;
Section 107. After the Bonds have been executed by the Mayor and
City Secretary in accordance with their terms, they shall be presented
to the Attorney General of the State of Texas for examination and approval.
After the Bonds have been approved by the Attorney General, they shall be
registered by the Comptroller of Public Accounts of the State of Texas
in the manner provided by law. The Bonds shall not be issued until they
have been so approved and so registered.
Section 108. The Mayor and City Secretary are hereby authorized to
execute said Bonds and to impress thereon the corporate seal of the City.
The City Treasurer is hereby authorized to deliver said Bonds to the pur-
chaser or purchasers to whom they may be sold by the City Council upon re-
ceipt of the purchase price to be paid by such purchaser or purchasers.
Section 109. In addition to the Bonds authorized by this ordinance,
the City may issue bonds (hereinafter referred to as Additional Bonds)
payable from the Debt Service Fund hereinafter referred to and secured,
equally and ratably with the Bonds authorized by this ordinance, by a pledge
of the Revenues of the Systems, but only upon the following conditions:
(a) That the Additional Bonds shall be issued for the purpose
of improving or extending the Systems;
(b) That at the time the Additional Bonds are issued, the City
shall not be in default in making any payment required by Section 404, 405
or 406 of this ordinance;
(c) That the amount of the average annual Net Revenues of the
Systems computed by dividing by two the Net Revenues for the two fiscal
years immediately preceding the time of issuance of the Additional Bonds
shall be not less than 150% of the maximum aggregate amount of principal
and interest payable in any future fiscal year with respect to the Bonds and
Additional Bonds then outstanding (including Issued Bonds as hereinafter
defined) and the Additional Bonds about to be issued, and
(d) That the principal of the Additional Bonds shall be made pay-
able on March 1 of the years in which such principal is payable, and that
the interest on the Additional Bonds shall be made payable semi-annually
on September 1 and March 1.
All Bonds issued in accordance with the provisions of this Section
109 and pursuant to the propositions set forth in the preamble of this
ordinance, as well as all of those issued pursuant to propositions hereto-
fore or hereafter adopted by a majority of the resident, qualified electors
of the City owning taxable property in the City, and who have duly rendered
the same for taxation, voting at an election held for that purpose, whether
issued by virtue of this ordinance or by virtue of earlier or subsequent
ordinances or resolutions, and whether issued at one time or from time to
time, shall be deemed and treated as a single issue of bonds and as repre-
senting parts of the same indebtedness, within the meaning of Article 1113
of the 1925 Revised Statutes of Texas, as amended.
ARTICLE II.
REDEMPTION OF BONDS BEFORE MATURITY
Section 201. The Bonds payable subsequent to March 1, 1968, shall
be redeemable prior to their respective maturities, at the option of the
City, on March 1, 1968, or on March 1 of any year subsequent to 1968, upon
the following terms and conditions, viz.: (1) The Bonds called for re-
demption on any March 1 must include all of the Bonds then outstanding or
must be the outstanding Bonds bearing the highest identifying numbers; (2)
the redemption price shall be par and accrued interest to date of redemp-
tion, plus a premium for each bond redeemed, of the following respective
amounts in the following respective years: 1968, $25.00; 1969, $22.50;
1970, $20.00; 1971, $17.50; 1972, $15.00; 1973, $12.50; 1974, $10.00; 1975,
$7.50; 1976, $5.00; 1977, $2.50; and without premium if redeemed after 1977;
and (3) at least thirty days prior to the date upon which such redemption
is to be made, a notice of intention to make such redemption, describing
the Bonds to be redeemed, must be published at least once in a newspaper
printed in the English language and published and of general circulation
in the City of Fort Worth, in the State of Texas, and must be published at
least once in a financial ,journal published in the Borough of Manhattan,
in the City and State of New York. Such option may be exercised by ordinance
or resolution duly adopted by the City Council of the City.
Section 202. Nothing contained in this ordinance shall be construed
to limit or affect the right of the City to purchase, with any moneys law-
fully available for such purpose, any of the outstanding Bonds at a price
less than the redemption price hereinbefore prescribed.
Section 203. Notice having been given by publication in the manner
provided in Section 201, the Bonds called for redemption shall become due
and payable on the redemption date designated in the notice at the redemp-
tion price determined, as provided in Section 201, and upon presentation
and surrender thereof at the place of payment thereof, together with all
appurtenant coupons maturing subsequent to the redemption date, such Bonds
shall be paid at the redemption price aforesaid. All interest installments
represented by coupons which shall have matured on or prior to the redemption
date shall continue to be payable to the bearers of such coupons. Interest
on any Bonds to be redeemed shall cease to accrue from and after the re-
demption date specified in such notice unless the City defaults in the pay.
ment of the redemption price thereof.
Section 204. All Bonds. redeemed prior to maturity under the pro-
visions of this ordinance, together with the unmatured coupons, if any,
shall be cancelled and incinerated by the City Treasurer forthwith, and a
certificate showing the destruction of such Bonds or coupons shall be filed
in the office of the City Treasurer.
ARTICLE III.
APPLICATION OF PROCMS OF BONDS
Section 301. All moneys received by the City in payment for the
Bonds, exclusive of accrued interest, shall be credited to a special fluid,
which is hereby created and which shall be known as the "Water and Sewer
System. Construction Fund" (hereinafter referred to as the Construction
Fund). All moneys credited to the Construction Fund shall be deposited
with the City's depositary or depositaries and shall be subject to a lien
and charge in favor of the holders of the Bonds, and shall be held for the
further security of such holders until paid out as hereinafter provided.
Section 302. From the moneys credited to the Construction Fund
the City shall apply the sum of $1,050,000.00 to the payment of the cost
of improving and extending the City Water System and the sum of $900,000,00
to the payment of the cost of improving and extending the City Sever System.
Section 303. The amount received by the City from the purchasers
of the Bonds as accrued interest, if any, shall be paid by the City into
the Current Account-of the Debt Service Fund hereinafter described.
ARTICLR IV.
APPLICATION CP RF7VPNUwS
Section 401. Where used in this ordinance (1) the term "Systems"
shall be deemed to include all properties of every nature owned or used
by the City and used or useful in the operation of the City Water System
or the City Sewer System, including real estate, personal and intangible
properties, whether lying within or without the boundaries of the City,
and shall include all improvements, additions and extensions which may
hereafter be made to said properties or Systems; (2) the term "Operating
Expenses" shall mean the reasonable and proper expenses of operating and
maintaining the Systems, including, without limiting the generality of the
foregoing, expenditures for salaries, labor, materials, interest, repairs
and extensions necessary to enable the Systems to render efficient service,
and every proper item of expense, but such repairs and extensions shall be
limited to those which in the ,judgment of the City Council are necessary
to keep the Systems in operation and to render adequate service to the City
and the inhabitants thereof, or necessary to meet some physical accident or
condition which would otherwise impair such Systems and the Revenues thereof;
(3) the term "Revenues" shall mean the gross revenue and income derived by
the City from the operation of the Systems; (4) the term "Net Revenues" shall
mean the amount by which the aggregate of the Revenues received by the City
in any year shall exceed the amount required to pay the Operating Expenses
of such year; (5) the term "Issued Bonds" shall mean the $2,000,000.00 Water
and Sewer Revenue Bonds dated March 1, 1949, issued pursuant to the ordinance
entitled "An ordinance providing for the issuance of revenue bonds of the City
of Fort Worth in the aggregate principal amount of Two Million Dollars ($2,-
000,000.00) to finance the improvement, extension and enlargement of the City's
Water and Sewer Systems; providing for the payment of such bonds solely from
the revenues of such Systems; pledging a portion of such revenues to such pay-
ment; entering into certain covenants and agreements with respect to the opera-
tion of such Systems and the application of the revenues derived therefrom;
and repealing all ordinances in conflict herewith," adopted by the City Council
on April 20, 1949, the $2,650,000.00 Water and Sewer Revenue Bonds dated
September 1, 1949, issued pursuant to the ordinance entitled "An ordinance
providing for the issuance of revenue bonds of the City of Fort Worth in
the aggregate principal amount of Two Million, Six Hundred and Fifty Thou-
sand Dollars ($2,650,000.00), in addition to an installment of Two Million
Dollars ($2,000,000.00) of revenue bonds heretofore issued and sold out of
an authorized issue of Eighteen Million Dollars ($18,000,000.00), to finance
the improvement, extension and enlargement of the City's Water and Sewer
Systems; providing for the payment of such bonds solely from the revenues
of such Systems; pledging a portion of such revenues to such payment; enter-
ing into certain covenants and agreements with respect to the operation of
such Systems and the application of the revenues derived therefrom; and re-
pealing all ordinances in conflict herewith," adopted by the City Council
on September 14, 1949, the $6,000,000.00 Water and Sewer Revenue Bonds dated
March 1, 1951, issued pursuant to the ordinance entitled "An ordinance pro-
viding for the issuance of revenue bonds of the City of Fort Worth in the
aggregate principal amount of Six Million Dollars ($6,000,000.00), in addi-
tion to two installments aggregating Four Million, Six Hundred and Fifty
Thousand Dollars ($4,650,000.00) of revenue bonds heretofore issued and sold
out of an authorized issue of Eighteen Million Dollars ($18,000,000.00), to
finance the improvement, extension and enlargement of the City's Water and
Sewer Systems; providing for the payment of such bonds solely from the reve-
nues of such Systems; pledging a portion of such revenues to such payment;
entering into certain covenants and agreements with respect to the operation
of such Systems and the application of the revenues derived therefrom; and
repealing all ordinances in conflict herewith," adopted by the City Council
on February 28, 1951, which ordinance was amended on March 7, 1951, the
$4,250,000.00 Water and Sewer Revenue Bonds dated March 1, 1952, issued pur-
suant to the ordinance entitled "An ordinance providing for the issuance of
revenue bonds of the City of Fort Worth in the aggregate principal amount of
Four Million, Two Hundred and Fifty Thousand Dollars ($4,250,000.00), in addi-
tion to three installments aggregating Ten Million, Six hundred and Fifty Thou-
sand Dollars ($10,650,000.00) of revenue bonds heretofore issued and sold
out of an authorized issue of Eighteen Million Dollars ($18,000,000.00), to
finance the improvement, extension and enlargement-of the City's Water and
Sewer Systems; providing for the payment of such bonds solely from the reve-
nues of such Systems; pledging a portion of such revenues to such payment;
entering into certain covenants and agreements with respect to the operation
of such Systems and the application of the revenues derived therefrom; and
repealing all ordinances in conflict herewith," adopted by the City Council
on February 27, 1952, the $3,100,000.00 Water and Sewer Revenue Bonds dated
March 1, 1953, issued pursuant to the ordinance entitled "An ordinance pro-
viding for the issuance of revenue bonds of the City of Fort Worth in the ag-
gregate principal amount of Three Million, One Hundred Thousand Dollars
($3,100,000.00), in addition to four installments aggregating Fourteen Mil-
lion, Nine Hundred Thousand Dollars ($14,900,000.00) of revenue bonds hereto-
fore issued and sold out of an authorized issue of Eighteen Million Dollars
($18,000,000.00), to finance the improvement, extension and enlargement of
the City's Water and Sewer Systems; providing for the payment of such bonds
solely from the revenues of such Systems; pledging a portion of such revenues
to such payment; entering into certain covenants and agreements with respect
to the operation of such Systems and the application of the revenues derived
therefrom; and repealing all ordinances in conflict herewith," adopted by
the City Council on February 18, 1953, the $3,000,000.00 Water and Sewer Reve-
nue Bonds dated March 1, 1954, issued pursuant to the ordinance entitled "An
ordinance providing for the issuance of revenue bonds of the City of Fort
Worth in the aggregate principal amount of Three Million Dollars ($3,000,-
000.00) out of an authorized issue of Fifteen Million Dollars ($15,000,000.00),
in addition to Eighteen Million Dollars ($18,000,000.00) of revenue bonds
previously authorized and issued, to finance the improvement, extension and
enlargement of the City's Water and Sewer Systems; providing for the payment
of such bonds solely from the revenues of such Systems; pledging a portion
of such revenues to such payment; entering into certain covenants and agree-
ments with respect to the operation of such Systems and the application of the
revenues derived therefrom; and repealing all ordinances in conflict herewith,"
adopted by the City Council on March 10, 1954, the $3,500,000.00 Water and
Sewer Revenue Bonds dated March 1, 1955, issued pursuant to the ordinance
entitled "An ordinance providing for the issuance of revenue bonds of the
City of Fort Worth in the aggregate principal amount of Three Million, Five
Hundred Thousand Dollars ($3,500,000.00), in addition to an installment of
Three Million Dollarsjf($3,000,000.00) of revenue bonds heretofore issued and
sold out of an authorized issue of Fifteen Million Dollars ($15,000,000.00)
and in addition to Eighteen Million Dollars ($18,000,000.00) of revenue bonds
previously authorized and issued, to finance the improvement, extension and
enlargement of the City's Water and Sewer Systems; providing for the payment
of such bonds solely from the revenues of such Systems; pledging a portion
of such revenues to such payment; entering into certain covenants and agree-
ments with respect to the operation of such Systems and the application of
the revenues derived therefrom; and repealing all ordinances in conflict
herewith," adopted by the City Council on February 23, 1955, and the $5,-
000,000.00 Water and Sewer Revenue Bonds dated March 1, 1956, issued pursuant
to the ordinance entitled "An ordinance providing for the issuance of revenue
bonds of the City of Fort Worth in the aggregate principal amount of Five
Million Dollars ($5,000,000.00), in addition to two installments of revenue
bonds aggregating Six Million, Five Hundred Thousand Dollars ($6,500,000.00)
heretofore issued and sold out of an authorized issue of Fifteen Million Dol-
lars ($15,000,000.00) and in addition to Eighteen Million Dollars ($18,000,-
000.00) of revenue bonds previously authorized and issued, to finance the im-
provement and extension of the City's Water and Sewer Systems; providing for
the payment of such bonds solely from the revenues of such Systems; pledging
a portion of such revenues to such payment; entering into certain covenants
and agreements with respect to the operation of such Systems and the applica-
tion of the revenues derived therefrom; and repealing all ordinances. in con-
flict herewith," adopted by the City Council on February 29, 1956; and (6)
the term "First Issue Bond Ordinance" shall mean the ordinance adopted by
the City Council on April 20, 1949.
Section 402. All Revenues (as defined in Section 401 of this ordi-
nance) received or collected by the City or any of its officers or agencies
shall be deposited by the City Treasurer, as promptly as possible after
their receipt, in a bank or banks authorized to act as depositary. or deposi-
taries of the City, and shall be held by such bank or banks in a special
fund or account to be known as the "Water and Sewer Operating Fund" (here-
inafter referred to as the Operating Fund), established by the First Issue
Bond Ordinance.
Section 403. Subject only (1) to the right of the City to pay from
the Operating Fund moneys required for Operating Expenses as provided in
Section 404 of this ordinance and (2) to the right of the City to expend
moneys in the Operating Fund in accordance with Section 406 of this ordi-
nance, all moneys paid or required by Section 402 to be paid into the Operat-
ing Fund are hereby pledged to secure the payment of the principal of,
the redemption premium, if any, and interest on the Bonds (including Is-
sued Bonds and Additional Bonds issued in accordance with Section 109 of
this ordinance), and this pledge shall be valid and binding from and after
the earliest date (hereinafter referred to as the Issuance Date) upon
which any Bonds are issued pursuant to this ordinance. Revenues, as re-
ceived by the City, shall immediately be subject to the lien of this pledge
without any physical delivery thereof or further act, and the lien of this
pledge shall be valid and binding as against all parties having claims of
any kind in tort, or contract, or otherwise against the City, irrespective
of whether such parties have notice of such lien.
Section 404. From the Operating Fund the City shall first pay
Operating Expenses as such expenses become due and payable.
Section 405- (1) The Special Fund known as the "Water and Sewer Debt
Service Fund" (hereinafter referred to as "Debt Service Fund") established
by the First Issue Bond Ordinance shall be continued and maintained, and
such Special Fund shall be divided into a "Current Account" and a "Reserve
Account" as provided in the First Issue Bond Ordinance. All moneys paid
into such accounts as hereinafter provided and as provided in the First Is-
sue Bond Ordinance shall be deposited in one or more depositaries of the
City as a Special Fund and shall be kept separate from all other moneys of
the City.
(2) On or before the last day of the first month end-
ing subsequent to the Issuance Date, and on or before the fifteenth day of
each month thereafter, the City shall, out of the moneys remaining in the
Operating Fund after payment of Operating Expenses then due and payable, pay
(a) Into the Current Account of the Debt Service Fund:
(1) An amount equal to one-sixth (1/6) of the in-
terest payable on the Bonds (including Issued
Bonds and Additional Bonds) then outstanding
on the interest payment date next ensuing, less
the amount, if any, received as accrued inter-
est from the purchasers of the Bonds and deposited
to the credit of the Current Account and available
for the purpose of paying said interest; and
(2) An amount equal to one-twelfth (1/12) of the
principal of the Bonds (including Issued Bonds
and Additional Bonds) then outstanding that will
mature on the March first next ensuing; and
(b) Into the Reserve Account of the Debt Service Fund:
An amount equal to twenty per cent (20%) of said
payments into the Current Account; provided, how-
ever, that whenever and for so long as the amount
in the Reserve Account shall be as much as the ag-
gregate amount of principal and interest that will
become due and payable in the twelve months` period
beginning on the March 2 next ensuing on the Bonds
(including Issued Bonds and Additional Bonds) then
outstanding, no payment need be made into the Re-
serve Account; and provided, further, that no great-
er payment need be made into the Reserve Account
than shall be necessary to make the amount in the Re-
serve Account equal to said aggregate amount of prin-
cipal and interest.
(3) In addition to the amount required by the foregoing
provisions of this section to be paid into the Current Account of the Debt
Service Fund on or before the last day of the month in which any Bonds or
Additional Bonds are delivered, the City shall pay into said account, on or
before said day, out of moneys remaining in the Operating Fund after the
payment of Operating Expenses then due and payable, an amount equal to the
amounts, if any, which would have been theretofore paid, pursuant to said
foregoing provisions, into the Current Account with respect to said Bonds
or Additional Bonds (a) on account of interest, if said Bonds or Additional
Bonds had been delivered six months before the interest payment date next
ensuing, and (b) on account of principal, if said Bonds or Additional Bonds
had been delivered one year before the principal payment date next ensuing.
(4) If for any reason the moneys in the Current Ac-
count or the Reserve Account of the Debt Service Fund, and actually avail-
able for the purpose of paying the principal of or interest on the Bonds
or the Issued Bonds or the Additional Bonds, shall at any time be less than
the total amount required by the foregoing provisions of this section to be
paid into such account up to such time, after deducting, in the case of the
Current Account, moneys previously applied to, or set aside and held by the
City for, the payment of matured Bonds or Issued Bonds or Additional Bonds
and matured coupons appurtenant to Bonds or the Issued Bonds or Additional
Bonds, the amount of the deficiency shall be added to the amount otherwise
required to be paid from the Operating Fund into such deficient account
in each month thereafter until all such deficiencies shall have been made up,.
(5) Whenever and for so long as the moneys in the
Debt Service Fund are at least equal to the aggregate principal amount of
the Bonds and Issued Bonds and Additional Bonds issued and unpaid, plus
the amount of interest then due and thereafter to become due on the Bonds
and Issued Bonds and Additional Bonds issued and unpaid, no further payment
need be 'made into the Debt Service Fund.
Section 406. The special account in the Operating Fund known as
the "Operation Reserve Account" created by the First Issue Bond Ordinance
shall be continued and maintained. The City Council has ascertained and
hereby determines that cash and investments amounting in the aggregate to
$461,535.01 have been set aside in accordance with the provisions of the
First Issue Bond Ordinance and are now held in said account and that said
sum is more than twenty-five percentum of the total amount of the Operating
Expenses of the Systems for the twelve months' period ending on September
30, 1956. In the event that the moneys held in said account shall hereafter
be less than twenty-five percentum of the total amount of the Operating Ex-
penses of the Systems for any twelve months' period ending on the next pre-
ceding September 30th, the City shall, on or before the last days of Decem-
ber, March, June and September in each year, after making the payments for
Operating Expenses required by Section 404 and the payments into the Current
Account and Reserve Account of the Debt Service Fund required by Section 405,
set aside and pay into the Operating Reserve Account, out of any balance
of the revenues remaining in the Operating Fund, the sum of $16,000.00,
or such larger sum as may hereafter be prescribed by the City Council,
until the moneys held in the Operating Reserve Account shall be equal to
twenty-five percentum of the total amount of the Operating Expenses of the
Systems for the twelve months' period ending on the next preceding September
30th, after which no further payment need be made into such account unless
the moneys therein shall become less than such total amount, in which event
such further payments shall be made from time to time into said account as
may be necessary in order to make the moneys therein equal to said total
amount. Moneys in said account may be used by the City for the purpose of
making any payments required by either Section 404 or Section 405 of this
ordinance. Any surplus remaining in the Operating Fund, after making the pay-
ments for Operating Expenses required by Section. 404 and the payments into
the Current Account and Reserve Account of the Debt Service Fund required by
Section 405 and the payments into the Operation Reserve Account required by
this section, may be used by the City for any lawful purpose.
W Section 407. Moneys in the Current Account of the Debt Service Fund
shall be used by the City for the purpose of paying or making provision for
paying the principal of and interest on the Bonds or Issued Bonds or Addi-
tional Bonds as such principal and interest fall due. Moneys in the Reserve
Account of the Debt Service Fund shall also be used by the City for said pur-
pose whenever and to the extent that the moneys in the Current Account shall
be insufficient for said purpose. All moneys in the Debt Service Fund shall
be held by the City in trust, and they are hereby pledged to and charged
with the payments mentioned in this section.
Section 408. Moneys on deposit to the credit of the Reserve Account
of the Debt Service Fund or the Operation Reserve Account of the Operating
Fund may, in the discretion of the City Council of the City, be invested
in direct obligations of, or obligations the principal and interest of which
are unconditionally guaranteed by, the United States Government. Obligations
so purchased as an investment of moneys in either of such accounts shall be
deemed at all times to be a part of such account, and the interest accruing
thereon and any profit realized from such investment shall be credited to
such account, and any loss resulting from such investment shall be charged
to such account. The City shall sell at the best price obtainable any obli-
gations so purchased whenever it may be necessary so to do in order to pro-
vide moneys to meet any payment or transfer from such account.
ARTICLE V.
PARTICULAR COVENANTS OF THE CITY
Section 501. The City covenants and agrees that it will duly and
punctually pay, or cause to be paid, the principal of all Bonds issued un-
der this ordinance and the interest thereon, on the dates, at the place
and in the manner set forth in such Bonds and in the coupons thereto ap-
pertaining, and that it will faithfully do and perform and at all times
fully observe any and all covenants, undertakings, stipulations and provi-
sions contained herein or in the Bonds at any time outstanding hereunder.
Except as in this ordinance otherwise provided, such principal and interest
are payable solely from the Revenues derived from the Systems, which Reve-
nues are hereby pledged to the payment thereof in the manner and to the ex-
tent hereinabove particularly specified, and nothing in the Bonds or coupons
or in this ordinance shall be construed as pledging the credit of the City
or as obligating the City, directly or indirectly, or contingently, to levy
a tax therefor.
Section 502. The City covenants that it will at all times maintain
the Systems in good working order and condition and will continuously operate
the same, and will, from time to time, make all proper repairs, renewals and
replacements.
Section 503. The City covenants that it will at all times fix, es-
tablish and collect adequate rates and charges for the services furnished by
the Systems, so that the Revenues derived therefrom will at all times be
sufficient to provide fluids for paying Operating Expenses as they become
due and payable and for making the payments required by Section 405 to be
made to the Debt Service Fund and the payments required by Section 406 to
be made to the Operation Reserve Account, and to pay any other indebtedness
which may become a charge upon the Revenues of the Systems.
Section 504. The City covenants that it will at all times carry in-
surance in a responsible insurance company or companies authorized and quali-
fied under the laws of Texas to assume the risk thereof, covering such prop-
erties belonging to the Systems as are customarily insured, and against lass
i
or damage from such causes as are customarily insured against, by companies
engaged in the operation of water or sewer systems. The proceeds of any
and all such insurance shall, to the extent necessary, be applied to the re-
pair and replacement of the damaged property.
Section 505. The City covenants that, so long as the Bonds or any
of them shall be outstanding and except as in this ordinance otherwise ex-
pressly permitted, it will not sell, lease or otherwise dispose of or en-
cumber the Systems or any part thereof, and will not create or permit to be
created any charge or lien on the Revenues of the Systems ranking equally
with or prior to the charge or lien on such Revenues of the Bonds issued
under and secured by this ordinance. The City may, however, from time to
time, sell any machinery, fixtures, apparatus, tools, instruments or other
movable property acquired by it in connection with the Systems, or any ma-
terials used in connection therewith, if the City shall by resolution of its
City Council determine that such articles are no longer needed or are no
longer useful in connection with the construction or operation and maintenance
of the Systems, and the proceeds thereof shall be applied to the replacement
of the properties so sold or disposed of, or shall be deposited to the credit
of the Operating Fund. The City may from time to time sell or lease such
other property forming part of the Systems as it may determine is not needed
or serves no useful purpose in connection with the maintenance and operation
of the Systems. The proceeds of any such sale shall be deposited to the
credit of the Debt Service Fund, and the rentals from any such lease shall
be deposited to the credit of the Operating Fund.
Section 506. So fax as it legally may, the City covenants and agrees
that, so long as the Bonds or any of them are outstanding, it will not
grant a franchise for the operation of any competing water system or sewer
system.
Section 507. The City covenants and agrees that, so long as the
Bonds or any of them are outstanding, the rates charged for services fur-
nished by the Systems shall be equal and uniform, and no free service shall
be allowed except for City public schools or buildings and institutions
operated by the City.
w
Section 508. The City covenants and agrees that, so long as the
Bonds or any of them are outstanding, it will not issue Additional Bonds,
payable from the Debt Service Fund, except in the manner and subject to
the limitations prescribed by Section 109 of this ordinance.
Section 509. Nothing contained in this ordinance shall be construed
to require the City to make any payment except from the Revenues of the
Systems or from the moneys raised by the issuance of the Bonds.
Section 510. The City covenants that it will keep proper books of
account (separate from all other records and accounts) in which full and
correct entries shall be made of all transactions relating to the Systems.
Such books shall be open to the inspection of all interested persons. The
City further covenants that not later than three months after the close of
each fiscal year, the City will cause to be prepared a statement, certified
by a competent and independent certified public accountant, showing in rea-
sonable detail the revenues and expenses of the Systems during such fiscal
year, the assets and liabilities of the Systems at the beginning and close
of such fiscal year, the amounts on deposit at the close of such fiscal
year in each of the separate funds or accounts mentioned in this ordinance,
and such other information as may be necessary to enable the holders of
the Bonds and the Additional Bonds to be fully informed as to all matters
pertaining to the financial operation and condition of the Systems during
such fiscal year. The City further covenants that it will cause a copy
of such statement to be mailed to each of the original purchasers of the
Bonds or the Additional Bonds and also to each holder of any of the Bonds
or the Additional Bonds who shall have requested it.
Section 511. The City covenants that, so long as the Bonds or any
of them shall be outstanding, all deposits of money held in either the Con-
struction Fund or the Debt Service Fund or the Operating Fund (other than
money invested as hereinbefore provided) shall be adequately secured by
United States Government bonds or other marketable securities eligible as
security for the deposit of trust Hands under regulations of the Board of
Governors of the Federal Reserve System, or by indemnity bonds of indemnity
companies qualified as security for United States Government deposits, or
as may be required by the applicable laws of the State of Texas.
ARTICLE VI.
MISCELLANEOUS PROVISIONS
Section 601. If a coupon appertaining to any of the Bonds shall in
any way, before, at or after maturity, be transferred or pledged separate
and apart from the Bond to which it appertains, such coupon shall not, un-
less accompanied by such Bond, be entitled, in case of default hereunder,
to any benefit of or from this ordinance, except after prior payment in
full of the principal of all Bonds and of all coupons not so transferred
or pledged. If the time for the payment of any coupon appertaining to any
of the Bonds shall be directly or indirectly extended, or the extension
thereof shall be assented to by the City, or the City shall be a party to
or approve of any arrangement for such extension by purchasing such coupons
or in any other manner, then, anything in this ordinance contained to the
contrary notwithstanding, such coupon so extended shall not be entitled,
in case of default hereunder, to any benefit of or from this ordinance, ex-
cept after prior payment in full of all Bonds outstanding hereunder and of
all such coupons as shall not have been so extended.
Section 602. In consideration of the purchase and acceptance of the
Bonds authorized to be issued hereunder by those who shall hold the same
from time to time, this ordinance shall be deemed to be and shall constitute
a contract between the City and the holders from time to time of such Bonds;
and the covenants and agreements herein set forth to be performed on behalf
of the City shall be for the equal benefit, protection and security of the
holders of any and all such Bonds and coupons, all of which, regardless of
the time or times of their issue or maturity, shall be of equal rank without
preference, priority or distinction of any of the Bonds or coupons over any
other thereof except as expressly provided herein.
Section 603. Except as herein otherwise expressly provided, nothing
in this ordinance is intended or shall be construed to confer upon any per-
son, firm or corporation, other than the holders of the Bonds, any right,
remedy or claim, legal or equitable, under or by reason of this ordinance,
or any covenant, condition or stipulation herein, this ordinance and all of
its covenants, conditions and stipulations being intended to be for the sole
and exclusive benefit of the holders from time to time of the Bonds.
Section 604. In the event that any one or more of the provisions
of this ordinance shall for any reason be held to be illegal or invalid,
such illegality or invalidity shall not affect any other provision of this
ordinance, and this ordinance and the Bonds issued pursuant thereto shall
be construed and enforced as if such illegal or invalid provision or provi-
sions had not been contained in this ordinance.
Section 605. All ordinances and resolutions in conflict herewith
are hereby repealed in so far as they conflict herewith.
Section 606. This ordinance shall take effect and be in full force
and effect from and after the date of its passage.
ZMayoraPtheCjyj Fort north,
Texas
ATTES S :
r �
C tyF ecretary of the City of
ort Worth, Texas
APPROVED ASS TO FORM AND LEGALITY:
City Attorney of the City of
Fort 'Worth, Texas
(Form of Bond)
No. No.
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF FORT WORTH
WATER AND SEWER REVENUE BOND
SERIES 86
$1,000 $1,000
The City of Fort Worth (hereinafter called the City), a municipal
corporation of the State of Texas, for value received, hereby promises to
pay, solely from the revenues hereinafter referred to, to the bearer on
March 1, 19 , the principal sum of ONE THOUSAND DOLLARS ($1,000), and
to pay, solely from said revenues, interest on said principal sum from the
date of this Bond, at the rate of per centum
( %) per annum, semi-annually on September 1 and March 1 of each year,
until the City's obligation with respect to the payment of said principal
sum shall be discharged. So much of said interest as shall be payable at
or before the date of maturity of this Bond expressed herein will be paid
only upon presentation and surrender of the annexed interest coupons as they
severally mature, and so much of said interest as shall be payable after said
date of maturity will be paid to the bearer of this Bond. Payment of the
principal of and interest on this Bond will be made at the principal office
of The Hanover Bank, in the Borough of Manhattan, City and State of New
York, in such coin or currency of the United States of America as at the time
of payment shall be legal tender for the payment of public and private debts.
This Bond is one of a duly authorized issue of coupon bonds of the
City, known as its Water and Sewer Revenue Bonds, Series 86 (hereinafter
called the Bonds), limited to the aggregate principal amount of One Million,
Nine Hundred and Fifty Thousand Dollars ($1,950,000.00), dated March 1, 1957,
maturing serially on March 1 in various years, and numbered from 11,501 to
13,E+50, in the order of their maturity. The Bonds are issued or to be issued
for the improvement and extension of the City's Water System and the improve-
ment and extension of the City's Sewer System, and the Bonds are payable from
the Net Revenues derived by the City from the operation of such Systems. The
credit of the City is not pledged to the payment of the Bonds, and the holder
hereof shall never have the right to demand payment of this obligation out
of any funds raised or to be raised by taxation. The Bonds are issued or
to be issued from time to time under and pursuant to and equally and ratably
secured by an ordinance entitled "An ordinance providing for the issuance
of revenue bonds of the City of Fort Worth in the aggregate principal amount
of One Million, Nine Hundred and Fifty Thousand Dollars ($1,950,000.00),
in addition to three installments of revenue bonds aggregating Eleven Mil-
lion, Five Hundred Thousand Dollars ($11,500,000.00) heretofore issued and
sold out of an authorized issue of Fifteen Million Dollars ($15,000,000.00)
and in addition to Eighteen Million Dollars ($18,000,000.00) of revenue bonds
previously authorized and issued, to finance the improvement and extension
of the City's Water and Sever Systems; providing for the payment of such
bonds solely from the revenues of such Systems; pledging a portion of such
revenues to such payment; entering into certain covenants and agreements with
respect to the operation of such Systems and the application of the revenues
derived therefrom; and repealing all ordinances in conflict herewith," adopted
by the City Council of the City on Val-fi lamg 97, to Which
ordinance reference is hereby made for a more specific description of the
revenues charged with and pledged to the payment of the principal of and in-
terest on the Bonds, and for a statement of the nature and extent of such
security, of the rights of the bearers of the Bonds and of the annexed inter-
est coupons with respect to such security, and of the agreements of the City
with respect thereto, and for a statement of the conditions upon which ob-
ligation on a parity with this Bond may be issued.
The Bonds payable subsequent to March 1, 1968, shall be redeemable
prior to their respective maturities, at the option of the City, on March
11 1968, or on March 1 of any year subsequent to 1968, upon the following
terms and conditions, viz.: (1) The Bonds called for redemption on any
March 1 must include all of the Bonds then outstanding or must be the out-
standing Bonds bearing the highest identifying numbers; (2) the redemption
price shall be par and accrued interest to date of redemption, plus a premium
for each Bond redeemed, of the following respective amounts in the following
respective years: 1968, $25.00; 1969, $22.50; 1970, $20.00; 1971, $17.50;
1972, $15•00; 1973, $12.50; 1974, $10.00; 1975, $7.50; 1976, $5•00; 1977, $2.50;
and without premium if redeemed after 1977; and (3) at least thirty days
prior to the date upon which such redemption is to be made, a notice of in-
tention to make such redemption, describing the Bonds to be redeemed, must
be published at least once in a newspaper printed in the English language
and published and of general circulation in the City of Fort Worth, in the
State of Texas, and must be published at least once in a financial journal
published in the Borough of Manhattan, in the City and State of New York.
Each successive holder of this Bond, and each successive holder of
each of the coupons hereto attached, is conclusively presumed to forego
and renounce his equities in favor of subsequent holders for value without
notice, and to agree that this Bond and each of the coupons hereto attached
may be negotiated by delivery by any person having possession thereof, how-
soever such possession may have been acquired, and that any holder who shall
have taken this Bond or any of the coupons from any person for value and
without notice thereby has acquired absolute title thereto, free from any
defenses enforceable against any prior holder and free from all equities
and claims of ownership of any such prior holder.
This Bond is issued pursuant to the Constitution and statutes of
the State of Texas, including particularly Articles 1111 to 1118, inclusive,
of the 1925 Revised Civil Statutes of Texas, as amended, Chapter 249, Acts
51st Legislature (1949); Chapter 250, Acts 51st Legislature (1949), as
amended by Chapter 23, Acts 52nd Legislature (1951), and pursuant to propo-
sitions authorizing the encumbering of the income derived by the City from
the operation of the City's Water System and the City's Sewer System to pro-
vide for the payment of the $15,000,000.00 principal amount of bonds (of
which the $1,950,000.00 principal amount of Series 86 above described are a
part), adopted by a majority of the resident, qualified electors of the City
owning taxable property in the City, and who had duly rendered the same for
taxation, voting at an election held for that purpose on January 26, 1954,
and pursuant to the above mentioned ordinance. All acts, conditions and
things required by the Constitution or statutes of the State of Texas to
exist, be performed or happen precedent to or in the issuance of this Bond
exist, have been performed and have happened; and the amount of this Bond,
together with all other indebtedness of the City, does not exceed any limit
prescribed by the Constitution or statutes of said State.
IN WITNESS WHEREOF, the City has caused this Bond to be signed by
its Mayor and attested by its City Secretary, and has caused the seal of
the City to be hereunto affixed or impressed hereon, and coupons for the
interest payable prior to or at the maturity of this Bond, bearing the fac-
simile signatures of said Mayor and City Secretary, to be attached hereto,
all as of the first day of March, 1957•
CITY CF FORT WORTH, TEXAS
BY
r
ATTEST:
City Secretary
(Form of coupons representing interest payable
on or before March 1, 1968)
The City of Fort Worth, Texas, will pay to bearer,
solely from those certain revenues referred to in the
On the
Bond hereinafter mentioned, at the principal office of first day of
The Hanover Bank, in the City of New York, New York, Sept., 19
March,
the sum of Dollars ($ ),
NO. - $
being interest then due on its Water and Sewer Revenue
SERIES 86
Bond, Series 86, dated March 1, 1957. The holder here-
BOND NO.
of shall never have the right to demand payment of this
obligation out of any funds raised or to be raised by
taxation.
r
ATTEST:
City Secretary
(Form of coupons representing interest payable
subsequent to March 1, 1968)
Unless the Bond hereinafter mentioned shall have
been called for previous redemption and payment there-
of made or duly provided for, the City of Fort Worth,
On the
Texas, will pay to bearer, solely from those certain first day of
revenues referred to in the Bond hereinafter mentioned, Sept., 19
March,
at the principal office of The Hanover Bank, in the
N0. - $
City of New York, New York, the sum of
nms 86
Dollars ($ ), being interest then due on its
BOND NO.
Water and Sewer Revenue Bond, Series 86, dated March 1,
1957. The holder hereof shall never have the right to
demand payment of this obligation out of any funds raised
or to be raised by taxation.
Mayor
ATTEST:
City Secretary
(Form of Comptroller's Certificate)
OFFICE OF COMPTROLLER §
STATE OF TEXAS §
I HEREBY CERTIFY that there is on file and of record in my office
a certificate of the Attorney General of the State of Texas to the effect
that this bond has been examined by him as required by law, and that he
finds that it has been issued in conformity with the Constitution and laws
of the State of Texas and the Charter of said City, and that it is a valid
and binding special obligation of said City of Fort Worth, Texas, payable
from the revenues pledged to its payment by and in the ordinance authoriz-
ing same, and said bond has this day been registered by me.
WITNESS my hand and seal of office at Austin, Texas, this the
day of , A. D. 19
Comptroller of Public Accounts
of the State of Texas
(Form of City Attorney's Certificate)
The within bond is hereby approved as to form and legality.
City Attorney