HomeMy WebLinkAboutOrdinance 3171 ORDINANCE NO. a 17
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 ADDI-
TION TO EIGHTEEN MILLION DOLLARS ($18,000,000.00) OF REVENUE
BONDS PREVIOUSLY AUTHORIZED AND ISSUED, TO FINANCE THE IM-
PROVEMENT, EXTENSION AND ENLARGEMENT OF THE CITY'S WATER AND
SEWER SYSTEMS; PROVIDING FOR THE PAYMENT OF SUCH BONDS SOLE-
LY FROM THE REVENUES OF SUCH SYSTEMS; PLEDGING A PORTION OF
SUCH REVENUES TO SUCH PAYMENT; ENTERING INTO CERTAIN COVE-
NANTS AND AGREEMENTS WITH RESPECT TO THE OPERATION OF SUCH
SYSTEMS AND TEE APPLICATION OF THE REVENUES DERIVED THERE-
FROM; 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 Water 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 Jan-
uary 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
Council, issue its negotiable coupon bonds in the principal
sum of Twelve Million, Four Hundred Thousand Dollars ($12,-
40010(>0.00) for the purpose of improving, extending and en-
larging 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 in-
stallment being payable serially as may be determined by
the City Council, so that the last maturing bonds shall be-
come 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 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 se-
cured 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
Council, issue its negotiable coupon bonds in the principal
sum of Five Million, Six Hundred Thousand Dollars ($5,600,-
000.00) for the purpose of improving, extending and enlarging
the existing Sewer System of said City, said bonds to be is-
r �
sued at one time or in installments from time to time as
the City Council shall determine, the bonds of each in-
stallment being payable serially as may be determined by
the City Council, so that the last maturing bonds shall be-
come payable within forty (40) years from the date thereof,
and bearing interest at a rate not to exceed tour 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 addi-
tionally 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
($12,4w,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 or-
dinance duly adopted on the 20th day of April., 1949, did authorize the
issuance 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
thousand (2,000), both inclusive; and the said City Council, by ordinance
duly adopted on the 14th day of September, 1949, did authorize the issu-
ance 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,-
000,000.00) of Water and Sewer Revenue Bonds combined in one issue, said
bonds being numbered from forty-six hundred and fifty-one (4,651) to ten
thousand, six hundred and fifty (10,650), both inclusive; and the said City
Council, by ordinance duly adopted on the 27th day of February, 1952, did
authorize the issuance of Four Million, Two Hundred and Fifty Thousand Dol-
lars ($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 (14,900), both inclusive; and
the said City Council, by ordinance duly adopted on the 18th day of Febru-
ary, 1953, did authorize the issuance of Three Million, One Hundred Thou-
sand 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 authorizin& 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 elec-
tion 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 ordinance and secured, equally and ratably with the bonds au-
thorized 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 con-
ditioned
(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 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 in-
terest 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 lst of the years in which such
principal is payable, and that the interest on the addi-
tional bonds shall be made payable semi-annually on Septem-
ber lst and March 1st;
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. 1
Shall the City of Fort Worth, Texas, through its City
Council, issue its negotiable coupon bonds in the princi-
pal sum of Ten Million Dollars ($10,000,000.00), in addi-
tion to bonds of the aggregate principal amount of Twelve
Million, Four Hundred Thousand Dollars ($12,4o0,0oo.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 Waterworks System of said City, said bonds to be is-
sued at one time or in installments from time to time as
the City Council shall determine, the bonds of each in-
stallment 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 there-
of, and bearing interest at a rate not to exceed four and
one-half per cent (4z96) 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 Waterworks System of
said City, or in the event that the City Council be au-
thorized to issue Sever 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
Council, 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 ($5,6o0,000.00) heretofore issued
by the City pursuant to a proposition adopted by a majority
vote of the qualified electors of the City at a special elec-
tion held on January 251 1949, for the purpose of improving,
extending and enlarging the existing Sewer System of said
City, said bonds to be issued at one time or in installments
from time to time as the City Council shall determine, the
bonds of each installment being payable serially as may be
determined by the City Council, so that the last maturing
bonds shall become payable within forty (40) years from the
date thereof, and bearing interest at a rate not to exceed
four and one-half per cent (4-?'$) per annum from the date
thereof, payable semi-manually, and to provide for the pay-
ment 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 au-
thorized to issue Waterworks System revenue bonds as sub-
mitted 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 City Council has found and determined that the revenue
bonds now proposed to be issued shall be for the purpose of improving, ex-
tending or enlarging such City Water and Sewer Systems; that the City is
not now, and has not been, in default in the payment of any sum required
in any of the provisions of said ordinances authorizing the issuance of Two
Million Dollars ($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 issu-
ance 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 Hun-
dred 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; 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 proposed 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 lst and March lst of each year, respectively;
and,
WHEREAS, Five Million, Six Hundred Thousand Dollars ($5,600,000.00)
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, and February 18, 1953, were issued for the pur-
pose of improving, extending and enlarging the City Sewer System and Twelve
Million, Four Hundred Thousand Dollars ($12,400,000.00) of said bonds au-
thorized by said ordinances were issued for the purpose of improving, ex-
tending 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 Three Million Dollars ($3,000,000.00) 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 Eighteen Million Dollars ($18,000,-
000.00) 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, voting at an election held for that purpose on the 25th day of
January, 1949, be issued in bonds at this time, said bands to be issued be-
ing 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
Section 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 Opera-
tion Reserve Account described in Section 406. of
this ordinance.
(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:
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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 Two Million Dollars ($2,000,000.00)
for the purpose of improving, extending and enlarging the City Water Sys-
tem, and bonds of the City, being a part of the bonds referred to in Propo-
sition 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 ag-
gregate principal amount of One Million Dollars ($1,000,000.00) for the
purpose of improving, extending and enlarging 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 de-
fined 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 three thousand (3,000) in number,
numbered from one (1) to three thousand (3,000), inclusive, and of the de-
nomination of One Thousand Dollars ($1,000.00) each, shall be dated March 1,
1954, and shall mature serially in numerical order on March 1st of each
year, as follows:
Year Amount Bond Numbers
1955 $120,000.00 1 to 120
1956 120,000.00 121 to 240
1957 120,000.00 241 to 36o
1958 120,000.00 361 to 480
1959 120,000.00 481 to boo
1960 120,000.00 601 to 720
1961 120,000.00 721 to 84o
1962 120,000.00 841 to 960
1963 120,000.00 961 to 1,o8o
1964 120,000.00 1,o81 to 1,200
1965 120,000.00 1,201 to 1,320
1966 120,000.00 1,321 to 1,440
1967 120,000.00 1,441 to 1,56o
1968 120,000.00 1,561 to 1,68o
1969 120,000.00 1,681 to 1,800
1970 120,000.00 1,8ol to 1,920
1971 120,000.00 1,921 to 2,04o
1972 120,000.00 2,041 to 2,160
1973 120,000.00 2,161 to 2,280
1974 120,000.00 2,281 to 2,400
1975 120,000.00 2,401 to 2,520
1976 120,000.00 2,521 to 2,64o
1977 120,000.00 2,641 to 2,76o
1978 120,000.00 2,761 to 2,880
1979 120,000.00 2,881 to 3,000
The interest on each Bond shall be payable semi-annually on September 1st
and March lst 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
private debts. The Bonds which mature subsequent to March 1, 1965, shall
be redeemable prior to their respective maturities, as provided in Article
II of this ordinance.
Section 104. The Bonds numbered from one (1) to seven hundred and
twenty (720), inclusive, shall bear interest at the rate of four and one-
half per centum (4-1/2%) per annum; the Bonds numbered from seven hundred
and twenty-one (721) to twelve hundred (1,200), inclusive, shall bear in-
terest at the rate of one and one-half per centum (1-1/P-%) per annum; the
Bonds numbered from twelve hundred and one (ls20l) to eighteen hundred
(1,800), inclusive, shall bear interest at the rate of one and three-
quarters per centum (1-3/4%) per annum; and the Bonds numbered from eighteen
hundred and one (1,801) to three thousand (3,000), inclusive, shall bear in-
terest at the rate of two per centum (2%) per annum.
Section 105. The Bonds shall be payable to bearer, without privi-
lege of registration. They shall be signed by the Mayor of the City and
shall be attested by the City Secretary. 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 signa-
tures 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 renounce 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 they
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
provided 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 purchaser or purchasers to whom they may be sold by the City Council
upon receipt of the purchase price to be paid by such purchaser or pur-
chasers.
Section 109. In addition to the Bonds authorized by this ordinance,
the City may issue bonds (herein fter 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, 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 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
payable 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 or-
dinance, as well as all of those issued pursuant to propositions heretofore
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, 1965, shall
be redeemable prior to their respective maturities, at the option of the
City, on March 1, 1965, or on March 1 of any year subsequent to 1965, 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 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,
plus a premium for each bond redeemed, of the following respective amounts
in the following respective years: 1965, $25,00; 1966, $22.50; 1967, $20.00;
1968, $17.50; 1969, $15.00; 1970, $12.50; 1971, $10.00; 1972, $7.50; 1973,
$5.00; 1974, $2.50; and without premium if redeemed after 1974; 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 reso-
lution 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 redemp-
tion date shall continue to be payable to the bearers of such coupons. In-
terest on any Bonds to be redeemed shall cease 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 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 PROCEEDS 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 fund,
which is hereby created and which shall be ]mown as the "Water and Sewer
System Construction Fund" (hereinafter referred to as the Construction Fond).
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 $2,000,000.00 to the payment of the cost of
improving, extending and enlarging the City Water System and the sum of
$1,000,000.00 to the payment of the cost of improving, extending and enlarg-
ing the City Sewer 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.
ARTICLE IV.
APPLICATION OF REVENUES
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, re-
pairs 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 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 Two Million Dollars ($2,000,000.00) to finance the improvement, exten-
sion and enlargement of the City's Water and Sewer Systems; providing for
the payment of such bonds solely from the revenues of such Systems; pledg-
ing a portion of such revenues to such payment; entering into certain cove-
nants 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 April 20, 1949, the
$2,650,000.00 Water and Sewer Revenue Bonds dated September 1, 1949, is-
sued pursuant to the ordinance entitled "An ordinance providing for the
issuance of revenue bonds of the City of Fort Worth in the aggregate prin-
cipal amount of Two Million, Six Hundred and Fifty Thousand 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 improve-
ment, extension and enlargement of the City's Water and Sewer Systems; pro-
viding for the payment of such bonds solely from the revenues of such Sys-
tems; pledging a portion of such revenues to such payment; entering into
certain covenants and agreements with respect to the operation of such Sys-
tems and the application of the revenues derived therefrom; and repealing
all ordinances in conflict herewith," adopted by the City Council on Sep-
tember 14, 1949, the $6,000,00o.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
revenues of such Systems; pledging a portion of such revenues to such pay-
ment; entering into certain covenants and agreements with respect to the
operation of such Systems and the application of the revenues derived there-
from; 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
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 Four Million, Two Hundred and Fifty Thousand Dollars ($4,250,000.00), in
addition to three installments aggregating Ten Million, Six Hundred and Fifty
Thousand 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 Sever 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
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, and the $3,100,000.00 Water and
Sewer Revenue Bonds dated March 1, 1953, 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, One
Hundred Thousand Dollars ($3,100,000.00), in addition to four installments
aggregating Fourteen Million, Nine Hundred Thousand Dollars ($14,900,000.00)
of revenue bonds heretofore issued and sold out of an authorized issue of
Eighteen Million Dollars ($18,000,000.00), to finance the improvement, ex-
tension 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 ordi-
nances in conflict herewith," adopted by the City Council on February 18,
1953; 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 ordinance,
all moneys paid or required by Section 402 to be paid into the operating
Fund are hereby pledged to secure the payment of the principal of, the re-
demption premium, if any, and interest on the Bonds (including Issued 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 is-
sued pursuant to this ordinance. Revenues, as received by the City, shall
immediately be subject to the lien of this pledge without any physical de-
livery 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 par-
ties 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") estab-
lished by the First Issue Bond Ordinance shall be continued and maintained,
and such Special Fund shall be divided into a "Current Account" and a "Re-
serve Account" as provided in the First Issue Bond Ordinance. All moneys
paid into such accounts as hereinafter provided and as provided in the
First Issue 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
interest payable on the Bonds (including
Issued Bonds and Additional Bonds) then
outstanding on the interest payment date
next ensuing, less the amount, if any, re-
ceived as accrued interest from the pur-
chasers 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 Is-
sued Bonds and Additional Bonds) then out-
standing 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, however, that whenever and for
so long as the amount in the Reserve Account
shall be as much as the aggregate 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 Reserve Account; and provided,
further, that no greater payment need be made
into the Reserve Account than shall be neces-
sary to make the amount in. the Reserve Account
equal to said aggregate amount of principal and
interest.
(3) In addition to the amount required by the forego-
ing 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 Ad-
ditional Bonds had been delivered six months before the interest payment
date next ensuing, and (b) on account of principal, if said Bonds or Addi-
tional 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 Ad-
ditional 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 moneys amounting in the aggregate to $393,801.23
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, 1953.
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 Expenses
of the Systems for any twelve months' period ending on the next preceding
September 30th, the City shall, on or before the last days of December,
March, June and September in each year, after making the payments for Operat-
ing 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 Ex-
penses 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 Sec-
tion 404 or Section 405 of this ordinance. .Any surplus remaining in the
Operating Fund, after making the payments for Operating Expenses required
by Section 404 and the payments into the Current Account and Reserve Ac-
count 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.
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 provi-
sion for paying the principal of and interest on the Bonds or Issued Bonds
or Additional 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 purpose whenever and to the extent that the moneys in the Current Ac-
count 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 shell
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 obligations so purchased whenever it may be necessary so to
do in order to provide 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
under 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 pro-
visions contained herein or in the Bonds at any time outstanding hereunder.
Except as in this ordinance otherwise provided, such principal and inter-
est are payable solely from the Revenues derived from the Systems, which
Revenues are hereby pledged to the payment thereof in the manner and to
the extent 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 contin-
gently, to levy a tax therefor.
Section 502. The City covenants that it will at all times main-
tain 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,
establish and collect adequate rates and charges for the services fur-
nished by the Systems, so that the Revenues derived therefrom will at all
times be sufficient to provide funds 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 in-
debtedness which may become a charge upon the Revenues of the Systems.
Section 504. The City covenants that it will at all times carry
insurance in a responsible insurance company or companies authorized and
qualified under the laws of Texas to assume the risk thereof, covering such
properties belonging to the Systems as are customarily insured, and against
loss or damage from such causes as are customarily insured against, by com-
r
f
parries 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 repair 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
expressly permitted, it will not sell, lease or otherwise dispose of or
encumber 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 materials used in connection therewith, if the City shall by reso-
lution 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 pro-
ceeds 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 Fluid.
Section 506. So far 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.
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 con-
strued 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 Sys-
tems. 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, certi-
fied by a competent and independent certified public accountant, showing
in reasonable 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 Sys-
tems 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 pur-
chasers 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 funds 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.
ti
ARTICLE VI.
NQSCELLANEOUS 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 there-
of shall be assented to by the City, or the City shall be a party to or ap-
prove of any arrangement for such extension by purchasing such coupons or
in any other manner, then, anything in this ordinance contained to the con-
trary notwithstanding, such coupon so extended shall not be entitled, in
case of default hereunder, to any benefit of or from this ordinance, except
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 con-
stitute 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 per-
formed 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 pro-
visions 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.
Mayor of the City of Fort Worth,
Texas
ATTEST:
City Secretary of the City of
Fort Worth, Texas
APPROVED AS TO FORM AND LEGALITY:
City Attorney of tbe 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
smRms 86
$1,00o $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 prin-
cipal sum shall be discharged. So much of said interest as shall be pay-
able 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. Pay-
ment of the principal of and interest on this Bond will, be made at the prin-
cipal 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 Three Mil-
lion Dollars ($3,000,000.00), dated March 1, 1954, maturing serially on
March 1 in various years, and numbered from 1 to 3,000, in the order of
their maturity. The Bonds are issued or to be issued for the improvement,
extension and enlargement of the City's Water System and the improvement,
extension and enlargement of the City's Sewer System, and the Bonds are pay-
able 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 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 agreements with respect to the operation of such Systems and the ap-
plication of the revenues derived therefrom; and repealing all ordinances
in conflict herewith," adopted by the City Council of the City on March 10,
1954, to which ordinance reference is hereby made for a more specific de-
scription of the revenues charged with and pledged to the payment of the
principal of and interest 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 interest coupons with respect to such security, and of the
agreements of the City with respect thereto, and for a statement of the con-
ditions upon which obligations on a parity with this Bond may be issued.
The Bonds payable subsequent to March 1, 1965, shall be redeemable
prior to their respective maturities, at the option of the City, on March
1, 1965, or on March 1 of any year subsequent to 1965, 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: 1965, $25.00; 1966, $22.50; 1967, $20.00;
1968, $17.50; 1969, $15.00; 1970, $12.50; 1971, $10.00; 1972, $7.50; 1973,
$5.00; 1974, $2.50; and without premium if redeemed after 1974; 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.
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, and pursuant to
propositions 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 provide for the payment of the $15,000,000.00 principal amount of bonds
(of which the $3,000,000.00 principal amount of Series 86 Bonds above de-
scribed are a part), adopted by a majority of the resident, qualified elec-
tors of the City owning taxable property in the City, and who had duly ren-
dered the same for taxation, voting at an election held for that purpose
on January 26, 1954, and pursuant to the above mentioned ordinance. All
acts, conditions and things required by the Constitution or statutes of the
State of Texas to exist, be performed or happen precedent to or in the is-
suance of this Bond exist, have been performed and have happened; and the
amount of this Bond, together with all other indebtedness of the City,
does not exceed any limit prescribed by the Constitution or statutes of
said State.
IN WITNESS WHEREOF, the City has caused this Bond to be signed by
its Mayor and attested by its City Secretary, and has caused the seal of
the City to be hereunto affixed or impressed hereon, and coupons for the
interest payable prior to or at the maturity of this Band, bearing the
facsimile signatures of said Mayor and City Secretary, to be attached
hereto, all as of the first day of March, 1954.
CITY OF FORT WORTH, TEXAS
BY
ray Jr
ATTEST:
City Secretary
I
(Form of coupons representing interest payable
on or before March 1, 1965)
The City of Fort Worth, Texas, will pay to bearer,
solely from those certain revenues referred to in the Bond
On the
hereinafter mentioned, at the principal office of The first day of
Hanover Bank, in the City of New York, New York, the sum Sept., 19
March,
of Dollars ($ ), being
N0. - $
interest then due on its Water and Sewer Revenue Bond,
SERIES 86
Series 86, dated March 1, 1954. The holder hereof shall
BOND NO.
never have the right to demand payment of this obligation
out of any funds raised or to be raised by taxation.
ATTEST:
City Secretary
(Form of coupons representing interest payable
subsequent to March 1, 1965)
Unless the Bond hereinafter mentioned shall have been
called for previous redemption and payment thereof made or
duly provided for, the City of Fort Worth, Texas, will pay On the
first day of
to bearer, solely from those certain revenues referred to
Sept., 19 in the Bond hereinafter mentioned, at the principal office March,
of The Hanover Bank, in the City of New York, New York, the NO. - $
sum of Dollars ($ ), being SERIES 86
interest then due on its Water and Sewer Revenue Bond, BOND NO.
Series 86, dated March 1, 1954. 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 A toraey
ORDINANCE
No
Title
Date
Filed. Day of-
-9 -�
City Secretary