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HomeMy WebLinkAboutOrdinance 6798 ORDINANCE NO. AN ORDINANCE PROVIDING FOR THE ISSUANCE OF FOUR MILLION, THREE HUNDRED THOUSAND DOLLARS ($4,300,- 000.00) OF SANITARY SEWER SYSTEM AND SEWAGE DIS- POSAL PLANT BONDS, SERIES 1973B, OF THE CITY OF FORT WORTH, TEXAS, BEARING INTEREST AT THE RATES HEREINAFTER SET FORTH, AND PROVIDING FOR THE LEVY, ASSESSMENT AND COLLECTION OF A TAX SUFFICIENT TO PAY THE INTEREST ON SAID BONDS AND TO CREATE A SINKING FUND FOR THE REDEMPTION THEREOF AT MA- TURITY; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING THAT THIS ORDINANCE SHALL BE IN FORCE AND EFFECT FROM AND AFTER THE DATE OF ITS PASSAGE. WHEREAS, it is deemed advisable and to the best inter- est of the City of Fort Worth that certain improvement bonds authorized at an election previously held in said City be sold at this time, the date of the election, amount of bonds authorized thereat, purpose, amount of bonds previous- ly sold, and the amount now to be sold being as follows: DATE OF AMOUNT AMOUNT PREVIOUSLY AMOUNT NOW ELECTION AUTHORIZED PURPOSE SOLD OFFERED Sept. 8, 1970 $9,500,000 Sanitary -- $4,300,000 Sewer System and Sewage Disposal Plant NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That the bonds of said City to be called "Sanitary Sewer System and Sewage Disposal Plant Bonds, Series 1973B," be issued under and by virtue of the Constitution and laws of the State of Texas, and the Charter of said City, for the fol- lowing purpose, to wit: for the purpose of making permanent city improvements by improving, extending and enlarging the sanitary sewer system and sewage disposal plants of said City and acquiring the necessary lands therefor, which bonds aggregate in principal amount the sum of Four Million, Three Hundred Thousand Dollars ($4,300,000.00) . SECTION 2. That said bonds shall be numbered from one (1) to eight hundred and sixty (860) , both inclusive, of the denomination of Five Thousand Dollars ($5,000.00) each, aggregating Four Million, Three Hundred Thousand Dollars ($4,300,000.00) . SECTION 3. That said bonds shall be dated March 1, 1973, and shall become due and payable serially as follows: Bond Numbers Maturity Dates Amounts 1 to 34, both incl. March 1, 1974 $170,000.00 35 to 68, both incl. March 1, 1975 170,000.00 69 to 102, both incl. March 1, 1976 170,000.00 103 to 136, both incl. March 1, 1977 170,000.00 137 to 170, both incl. March 1, 1978 170,000.00 171 to 204, both incl. March 1, 1979 170,000.00 205 to 238, both incl. March 1, 1980 170,000.00 239 to 272, both incl. March 1, 1981 170,000.00 273 to 306, both incl. March 1, 1982 170,000.00 307 to 340, both incl. March 1, 1983 170,000.00 341 to 374, both incl. March 1, 1984 170,000.00 375 to 408, both incl. March 1, 1985 170,000.00 409 to 442, both incl. March 1, 1986 170,000.00 443 to 476, both incl. March 1, 1987 170,000.00 477 to 510, both incl. March 1, 1988 170,000.00 511 to 545, both incl. March 1, 1989 175,000.00 546 to 580, both incl. March 1, 1990 175,000.00 581 to 615, both incl. March 1, 1991 175,000.00 616 to 650, both incl. March 1, 1992 175,000.00 651 to 685, both incl. March 1, 1993 175,000.00 686 to 720, both incl. March 1, 1994 175,000.00 721 to 755, both incl. March 1, 1995 175,000.00 756 to 790, both incl. March 1, 1996 175,000.00 791 to 825, both incl. March 1, 1997 175,000.00 826 to 860, both incl. March 1, 1998 175,000.00 SECTION 4. That the bonds payable subsequent to March 1, 1988, shall be redeemable prior to their respective maturities, at the option of the City, on March 1, 1988, or on any interest payment date subsequent to March 1, 1988, 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 outstanding bonds bearing the highest identifying numbers; (2) the redemption price shall be par and accrued interest to date of redemption; 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 pub- lished at least once in a financial journal of national circu- lation 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 of Fort Worth. Nothing contained in this ordinance shall be con- strued to limit or affect the right of the City to purchase, with any moneys lawfully available for such purpose, any of the outstanding bonds at a price less than the redemption price hereinbefore prescribed. Notice having been given by publi- cation in the manner provided herein, the bonds called for redemption shall become due and payable on the redemption date designated in the notice at the redemption price deter- mined, as provided herein, 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 afore- said. 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. in- terest on any bonds to be redeemed shall bease to accrue from and after the redemption date specified in such notice unless the City defaults in the payment of the redemption price thereof. SECTION 5. That said bonds shall bear interest at the rates as follows: Bonds Nos. 1 to 340, both incl., 6.00% per annum; Bonds Nos. 341 to 374, both incl., 4.625% per annum; Bonds Nos. 375 to 408, both incl., 4.401% per annum; Bonds Nos. 409 to 442, both incl., 4.50% per annum; Bonds Nos. 443 to 476, both incl., 4.60•1 per annum; Bonds Nos. 477 to 510, both incl., 4.70% per annum; Bonds Nos. 511 to 545, both incl., 4.80•% per annum; Bonds Nos. 546 to 615, both incl., 4.90% per annum; Bonds Nos. 616 to 685, both incl., 5.00% per annum; and Bonds Nos. 686 to 860, both incl., 4.00% per annum, payable September 1, 1973, and semi-annually thereafter on March 1st and September 1st of each year. SECTION 6. That the principal of and interest on said bonds shall be payable upon presentation and surrender of bond or proper coupons at the Manufacturers Hanover Trust Company, in the Borough of Manhattan, City and State of New York. SECTION 7. That each of said bonds shall be executed for and on be- half of the City of Fort Worth, Texas, by the facsimile signa- ture of the Mayor, approved as to form and legality by the facsimile signature of the City Attorney, and attested man- ually by the City Secretary, with the seal of the City there- on duly affixed to, or impressed, or printed, or lithographed, and the interest coupons shall be executed with the litho- graphed or printed facsimile signatures of the Mayor and City Secretary of the City of Fort Worth, Texas, and such facsimile signatures shall have the same effect as if man- ually placed on said bonds and coupons. SECTION 8. That the form of said bonds shall be substantially as follows: NO. UNITED STATES OF AMERICA $5,000.00 STATE OF TEXAS COUNTY OF TARRANT CITY OF FORT WORTH SANITARY SEWER SYSTEM AND SEWAGE DISPOSAL PLANT BOND SERIES 1973B The City of Fort Worth, in the County of Tarrant, State of Texas, a municipal corporation duly incorporated under the laws of the State of Texas, for value received, hereby promises to pay to the bearer hereof, on the 1st day of March, 19 _, the sum of FIVE THOUSAND DOLLARS in lawful money of the United States of America, with inter- est thereon from date hereof at the rate of �% per annum, evidenced by coupons payable September 1, 1973, and semi-annually thereafter on March 1st and September 1st of each year, both principal and interest payable upon presenta- tion and surrender of bond or proper coupon at the Manufac- turers Hanover Trust Company, in the Borough of Manhattan, City and State of New York, and the City of Fort Worth, Texas, is hereby held and firmly bound, and its faith and credit and all taxable property in said City are hereby pledged for the prompt payment of the principal of this bond at maturity and the interest thereon as it accrues. This bond is one of a series of eight hundred and sixty (860) bonds of like tenor and effect, except as to number, interest rate, maturity, and right of prior redemption, num- bered from one (1) to eight hundred and sixty (860) , both inclusive, of the denomination of Five Thousand Dollars ($5,000.00) each, aggregating Four Million, Three Hundred Thousand Dollars ($4,300,000.00) , issued for the purpose of making permanent city improvements by improving, extending and enlarging the sanitary sewer system and sewage disposal plants of said City and acquiring the necessary lands there- for, under and by virtue of the Constitution and laws of the State of Texas and the Charter of said City, and pursuant to an ordinance passed by the City Council of the City of Fort Worth, Texas, which ordinance is duly of record in the Minutes of said City Council. The bonds payable subsequent to March 1, 1988, shall be redeemable prior to their respective maturities, at the op- tion of the City, on March 1, 1988, or on any interest pay- ment date subsequent to March 1, 1988, upon the following terms and conditions, viz.: (1) The bonds called for redemp- tion on any March 1 must include all of the bonds then out- standing or must be the outstanding bonds bearing the high- est identifying numbers; (2) the redemption price shall be par and accrued interest to date of redemption; and (3) at least thirty days prior to the date upon which such redemp- tion is to be made, a notice of intention to make such re- demption, describing the bonds to be redeemed, must be pub- lished at least once in a financial journal of national circu- lation published in the Borough of Manhattan, in the City and State of New York. The date of this bond in conformity with the ordinance above mentioned is March 1, 1973. AND IT IS HEREBY CERTIFIED AND RECITED that the issuance of this bond, and the series of which it is a part, is duly authorized by law and by a vote of the resident, qualified electors who own taxable property in said City and who had duly rendered the same for taxation in the City of Fort Worth, Texas, voting at an election held for that purpose within said City on September 8, 1970; that all acts, conditions and things required to be done precedent to and in the issu- ance of this series of bonds, and of this bond, have been properly done and performed and have happened in regular and due time, form and manner as required by law; that sufficient and proper provision for the levy and collection of taxes has been made, which, when collected, shall be appropriated exclusively to the payment of this bond and the series of which it is a part, and to the payment of the interest coupons hereto annexed as the same shall become due; and that the total indebtedness of said City of Fort Worth, Texas, includ- ing the entire series of bonds of which this is one, does not exceed any constitutional, statutory or charter limita- tion. IN WITNESS WHEREOF, this bond has been signed by the printed or lithographed facsimile signature of the Mayor of said City, attested by the manual signature of the City Secretary, and approved as to form and legality by the printed or lithographed facsimile signature of the City Attorney, and the interest coupons attached hereto have been signed by the printed or lithographed facsimile signatures of the Mayor and City Secretary, and the official seal of said City has been duly affixed to, or impressed, or printed or lithographed on this bond. CITY OF FORT WORTH, TEXAS BY Mayor ATTEST: City Secretary APPROVED AS TO FORM AND LEGALITY: City Attorney That substantially the following certificate shall be printed on the back of each bond: OFFICE OF COMPTROLLER STATE OF TEXAS I HEREBY CERTIFY that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that this bond has been examined by him as required by law, and that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas and the Charter of said City, and that it is a valid and binding obligation upon said City of Fort Worth, Texas, and said bond has this day been registered by me. WITNESS my hand and seal of office, at Austin, Texas, this the day of , A. D. 1973. Comptroller of Public Accounts of the State of Texas SECTION 9. That the proceeds from all taxes collected for and on account of this series of bonds shall be credited to an Interest and Redemption Fund for the purpose of paying the interest as it accrues and to provide a sinking fund for the purpose of paying each installment of principal as it becomes due; that for each year hereafter while any of said bonds, or interest thereon, are outstanding and unpaid, there shall be computed and ascertained, at the time other taxes are levied, the rate of tax based on the latest approved rolls of said City as will be requisite and sufficient to make, raise and produce in each of said years a fund to pay the interest on said bonds and to provide a sinking fund sufficient to pay the principal as it matures, or at least 2% of the principal as a sinking fund, whichever is greater, full allowances being made for delinquencies and costs of collection; that a tax at the rate as hereinabove determined is hereby ordered to be levied and is hereby levied against all of the taxable property in said City for each year while any of said bonds or interest thereon, are outstanding and unpaid; that the said tax each year shall be assessed and collected and placed in the Interest and Redemption Fund; and that the City Treas- urer shall honor warrants against said fund for the purpose of paying the interest maturing and principal of said bonds and for no other purpose. SECTION 10. That to pay the interest scheduled to mature on Septem- ber 1, 1973, there is hereby appropriated the sum of One Hun- dred Nine Thousand, Four Hundred Twenty-six and 25/100 Dollars ($109,426.25) from funds of the City available for such pur- pose; and that the money thus appropriated shall be used for no other purpose than to pay said interest. SECTION 11. That the bonds herein authorized shall be presented to the Attorney General of the State of Texas for examination and approval and to the Comptroller of Public Accounts for registration; that upon registration of said bonds, the Comptroller of Public Accounts (or a deputy designated in writing to act for the Comptroller) shall manually sign the Comptroller's certificate of registration prescribed herein to be printed on the back of each bond; and that the seal of the Comptroller shall be affixed to, or impressed, or printed, or lithographed on each of said bonds. SECTION 12. That the sale of the bonds herein authorized, together with the bonds authorized by Ordinance No. 6797, to First National Bank in Dallas and Associates at a price of par and accrued interest to date of delivery, plus a premium of $827.50, is hereby confirmed; and that delivery of such bonds shall be made to such purchasers as soon as may be after the passage of this ordinance upon payment therefor in accordance with the terms of sale. SECTION 13. That the City covenants to and with the purchasers of the bonds that it will make no use of the proceeds of the bonds at any time throughout the term of this issue of bonds which, if such use had been reasonably expected on the date of de- livery of the bonds to and payment for the bonds by the pur- chasers, would have caused the bonds to be arbitrage bonds within the meaning of Section 103 (d) of the Internal Revenue Code of 1954, as amended, or any regulations or rulings per- taining thereto; and by this covenant the City is obligated to comply with the requirements of the aforesaid Section 103 (d) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. That the City further covenants that the proceeds of the bonds will not otherwise be used, directly or indirectly, so as to cause all or any part of the bonds to be or become arbitrage bonds within the meaning of the aforesaid Section 103 (d) or any regulations or rulings pertaining thereto. SECTION 14. That all ordinances and resolutions or parts thereof in conflict herewith are hereby repealed. SECTION 15. That this ordinance shall take effect and be in full force and effect from and after the date of its passage, and it is so ordained. SECTION 16. It is hereby officially found and determined that the meeting at which this ordinance was passed was open to the public as required by law, and that public notice of the time, place and purpose of said meeting was given as required by Chapter 227, Acts of the 61st Legislature, Regular Session, 1969. �,M or of the City of Fort Worth, Texas ATTES . Ci y S cretary of the City of ort Worth, Texas APPRO AS TO FORM AND LEGALITY- City Attorney of the City of Fort Worth, Texas That the form of coupons to be attached to said bonds shall be substantially as follows: Unless the bond hereinafter mentioned shall have been called for previous redemp- tion and payment thereof made or duly pro- vided for, THE CITY OF FORT WORTH, TEXAS, promises BOND NO. to pay to bearer at the Manufacturers On the lst day of Hanover Trust Company, in the City of Sept., 19 — New York, New York, the amount specified March, hereon for interest due that day on its SERIES 1973B Sanitary Sewer System and Sewage Disposal COUPON NO. Plant Bond, Series 1973B, dated March 1, 1973. CITY OF FORT WORTH, TEXAS BY Mayor ATTEST: City Secretary f<f � UNE City of Fort Worth, Texas DOBBS .Mayor and Council Communication GRAHAM Ra d Ba DATE REFERENCE SUBJECT: Sale of $9,800,000 General PAGE NUMBER Obligation Bonds 1 2/14/73 G�2145 1 Of Bids for $9,800,000 General Obligation Bonds were received Wednesday, February 14, 1973, at 10 a.m. A summary of the average net effective interest rates is shown below. 1. First National Bank in Dallas 4.70577 2. First National Bank, Chicago 4.71767 3. Smith Barney & Co. 4.74420 4. Continental Illinois Bank & Trust 4.74462 5. First National Bank, Fort Worth 4.7476 6. Republic National Bank, Dallas 4.7487 7. First National City, Merrill-Lynch 4.7546 8. Kidder Peabody 4.7609 9. Chase Manhattan Bank 4.7629 10. Chemical Bank 4.7651 11. Halsey-Stuart & Co. 4.7712 12. Dillon Read and Co. 4.7790 13. Texas Commerce Bank, Houston 4.7958 14. Morgan Guaranty Trust Co. 4.8230 It is recommended that the bonds be sold to the bidder offering the lowest interest cost, First National Bank in Dallas, Texas, at an average net effective rate of 4.70577, and that the City Council adopt Ordinance No. 6797, authorizing the issuance of $5,500,000 General Purpose Bonds and Ordinance No. 6798 authorizing the issuance of $4,300,000 Sanitary Sewer System and Sewage Disposal Plant Bonds. RNL:ms SUBMITTED BY: DISPOSITION BY COUNCIL: PROCESSED BY —_2 APPROVED [I OTHER (DESCRIBE) Adopted Ordinance No. 6797 authorizing issuance CITY SECRETARY� , , � t'Ordinance No_ 6' 98 authar»;ng: issuance of DATE CITY MANAGER $4,300,000 Sanitary Sewer System and Sewage \ 3 lsposa an on s