HomeMy WebLinkAboutOrdinance 4469 OFFICIAL RECORD
CITY SECRETARY
ORDINANCE �d. '� �9 FT. WORTH, TEX.
AUTHORIZING THE ISSUANCE OF $1,000,000.00 CITY OF
FORT WORTH AIRPORT REVENUE BONDS, SERIFS 1961,
BEARING INTEREST AT THE RATES HEREIN PRESCRIBED,
MATURING SERIALLY, FOR THE PURPOSE OF PROVIDING
FUNDS TO MAKE IMPROVEMENTS TO THE CITY'S AIRPORT
SYSTEM; PLEDGING THE AIRPORT REVENUES AS DESIGNATED
HEREIN TO THE PAYMENT OF SAID BONDS; LEVYING A TAX
NOT TO EXCEED 5¢ ON THE ONE HUNDRED DOLLARS OF
ASSESSED VALUATION OF TAXABLE PROPERTY TO SUPPLEMENT
SUCH INCOME TO ASSURE EFFICIENT OPERATION OF SAID
SYSTEM; PROVIDING THAT SAID BONDS SHALL NOT BE PAID
OUT OF FUNDS DERIVED FROM TAXATION; ORDAINING OTHER
PROVISIONS RELATING TO THE SUBJECT; AND DECLARING
AN EMERGENCY.
WHEREAS, the City of Fort Worth (hereinafter called
"City") operating under its Home Rule Charter and having a population of
more than 200,000 according to the last preceding Federal Census owned
land acquired for airport purposes, part of which was leased to an airport-
operating corporation that had constructed certain improvements thereon
which have been acquired by the City; and
WHEREAS, the City has heretofore by ordinances passed
November 9, 1960, and November 18, 1960, authorized the issuance of
$5,000,000.00 City of Fort Worth Airport Revenue Bonds, to-wit; Series
1960 in the amount of $2,750,000.00 and Series 1960-A, in the amount of
$2,250,000.00, (collectively herein called "Revenue Bonds"), to refund
certain outstanding airport revenue bonds and to provide funds to acquire
the improvements constructed by said operating corporation on such land
and to further improve its airport or airports, as authorized by Chapter
43 Acts of the 53rd Legislature, First Called Session, 1954, as amended
by Chapter 225, Acts 1957, 55th Legislature (carried forward as Article
1269J-5 Vernons Annotated Civil Statutes of Texas), and as authorized by
Chapter 13, Acts 1959, 56th Legislature Second Called Session (carried
forward as Article 1269h-2, Vernons Annotated Civil Statutes of Texas); and
WHEREAS, as contemplated by said ordinances, the City
deems it advisable that Additional Bonds (as defined in said ordinances)
be issued to provide funds to further improve its airport or airports as
authorized by said above cited laws of the State of Texas; and
WHEREAS, said bonds when issued shall be payable from
the Gross Revenues of the Airport System and shall, in all things be on a
- 1 -
parity and of equal dignity with said Series 1960 and said Series 1960-A
Airport Revenue Bonds, above described;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH:
1. Authorization of Bonds. To provide funds for the
further improvement of the City's Airports System the revenue bonds of the
City of Fort Worth, in the aggregate amount cf One Million ($1,000,000.00)
Dollars shall be issued.
2. Designation - Denomination - Serial Numbers -
Interest Rates: That such bonds to be known as City of Fort Worth Airport
Revenue Bonds, Series 1961, (hereinafter called the "Bonds"), be issued
pursuant to the Constitution and laws of the State of Texas, including the
provisions of Chapter 43, Acts 53rd Legislature, First Called Session,1954,
as amended, and by Chapter 13, Acts 1959, 56th Legislature, Second Called
Session, and the Charter of said City, and that they be numbered from One
(1) to One Thousand (1,000), both inclusive, in the denomination of One
Thousand ($1,000.00) Dollars each, aggregating One Million ($1,000,000.00)
Dollars; bearing interest payable October 1, 3.961, and semi-annually there-
after on April 1 and October 1 of each year at rates as follows:
Bonds Nos. 1 to ,!/ , both Incl., S.c� % per annum;
Bonds Nos. 1� to ff�r , " �,�,r,% per annum;
Bonds Nos. -`L 1- to f 5 , y e.% per annum;
Bonds Nos. Lc L_ to / r •y�% per annum;
Bonds Nos. to , % per annum.
3. Date - Maturities Registration: Said Bonds shall
be dated April 1, 1961, and shall become due and payable serially as follows:
BONDS NUMBERS MATURITY DATES AMOUNTS
1 to 25, both incl., October 1, 1965, $25,000.00
26 to 50, " October 1, 1966, 25,000.00
51 to 75, October 1, 1967, 25,000.00
76 to 105, " October 1, 1968, 30,000.00
lo6 to 135, " October 1, 1969, 30,000.00
136 to 165, " October 1, 1970, 30,000.00
166 to 195, October 1, 1971, 30,000.00
196 to 225, October 1, 1972, 30,000.00
226 to 26o, October 1, 1973, 35,000.00
261 to 295, " October 1, 1974, 35,000.00
296 to 330, October 1, 1975, 35,000.00
331 to 365, October 1, 1976, 35,000.00
366 to 400, October 1, 1977, 35,000.00
4ol to 435, October 1, 1978, 35,000.00
436 to 470, " October 1, 1979, 35,000.00
- 2 -
471 to 515, both Incl., October 1, 1980, $ 45,000.00
516 to 56o, October 1, 1981, 45,000.00
561 to 605, October 1, 1982s 45,000.00
6o6 to 650, October 1, 1983, 45,000.00
651 to 695, October 1, 1984, 45,000.00
696 to 740, October 1, 1985, 45,000.00
741 to 785, October 1, 1986, 45,000.00
786 to 830, October 1, 1987, 45,000.00
831 to 875, " October 1, 1988, 45,000.00
876 to 920, " October 11 1989, 45,000.00
921 t;, 1000, October 1, 19900 80,000.00
Each Bond, at the option of the holder, shall be
registerable as to principal only on the books of the City, kept in the
City Hall at Fort Worth, Texas, by the City Secretary as Bond Registrar,
in accordance with the provisions for registration printed on the back of
each of the Bonds.
4. Medium and Place of Payment: The Bonds and the
coupons representing obligations to pay interest thereon shall be payable
in lawful money of the United States of America at The First National Bank
of Fort Worth, in the City of Fort Worth, Texas, (herein defined as the
"Bank of Payment") without exchange or collection charges to the owner or
holder of such bonds and coupons.
5. Option of Redemption: In certain of the Bonds
designated in this Section 5 the City reserves the option of redemption
prior to maturity, the extent and effect of such option being as follows:
Bonds maturing on and prior to October 1, 1975 shall
contain no option of redemption prior to maturity.
In Bonds Numbers 331 to 1000, both inclusive, the City
reserves the option of calling each such bond for redemption prior to matur-
ity on any interest payment date on and after October 1, 1975, at par and
accrued interest to date so fixed for redemption. Sixty days' notice of
such call shall be given in writing to the place of payment and notice shall
be published in the City of New York, New York. Said notice shall appear
in said publication in at least one issue, the date of said issue being
not less than sixty days prior to the date so fixed for redemption. If any
such bond is called for redemption in said manner and if funds sufficient
to pay the redemption price shall have been duly placed in the bank of
payment by the date fixed for redemption, it shall not thereafter bear
- 3 -
interest. If fewer than all of the optional bonds are called for redemption,
they shall be called in their inverse numerical order.
6. Method of Executing Bonds and Coupons: Each of the
Bonds shall be signed by the facsimile signature of the Mayor and counter-
signed manually by the City Secretary and the corporate seal of the City of
Fort Worth, Texas, shall be impressed upon each of them. The facsimile
signatures of the Mayor and City Secretary shall be lithographed or printed
upon the coupons attached to said bonds and such facsimile signatures shall
have the same effect as if manually placed on said bonds and coupons.
7. Special Obligations: The Bonds shall constitute
special obligations of the City of Fort Worth and each of the bonds shall
contain a provision stating that the holder thereof shall never have the
right to demand payment of said obligation out of funds raised or to be
raised by taxation. The City shall not be precluded by any provision of
this ordinance from using any other funds which may be used lawfully for
the purpose in paying the principal of or interest on the Bonds.
8. Form of Bonds: The form of the Bonds shall be
substantially as follows:
NO. $1,000.00
UNITED STATES OF AMERICA
STATE OF TFXAS
COUNTY OF TARRANT
CITY OF FORT WORTH
AIRPORT REVENUE BOND
SERIES 1961
The City of Fort Worth, in the County of Tarrant, State
of Texas, a municipal corporation duly incorporated under the laws of the
State of Texas, and operating under its Home Rule Charter, for value re-
ceived, hereby acknowledges itself indebted to and promises to pay solely
out of the revenues hereinafter specified, to bearer, or, if this rond be
registered, to the registered holder hereof, on the lst day of October,
19—, (or earlier as hereinafter referred to) (Note 1 to printer) the
principal sum of
ONE THOUSAND DOLLARS
in lawful money of the United States of America, (Note 2 to printer) with
interest thereon from date hereof at the rate of
- 4 -
( ,) per cent per annum, payable October 1, 1961, and semi-annually
thereafter on April 1 and October 1 of each year until the principal sum
shall be paid, which interest is payable in lawful money of the United
States of America, and interest falling due on or prior to maturity is pay-
able only upon presentation and surrender of proper interest coupons hereto
attached as they severally become due, both principal and interest being
payable at The First National Bank of Fort Worth, in the City of Fort Worth,
Texas, (hereinafter called the "Bank of Payment") without exchange or
collection charges to the owner or holder hereof, and the City of Fort Worth
is hereby held and firmly bound to apply the revenues of its Airport System
as defined and as prescribed in the ordinance passed November 9, 1960,
authorizing the City of Fort Worth Airport Revenue Bonds, Series 1960 and
in the ordinance authorizing this bond and the issue of which it is a part
to the payment of such principal and interest as they mature.
This bond may be registered as to principal alone in
accordance with the provisions printed on the back of this bond and subject
to the terms and conditions set forth in the authorizing ordinance. This
bond and interest coupons attached hereto are made negotiable by law and
are transferable by delivery and nothing contained in this bond or in said
ordinance shall affect or impair negotiability except the limitations in-
cident to registration of ownership.
This bond is one of a series of bonds of like tenor
and effect except as to serial number, maturity date, interest rate, and
option of redemption, numbered One (1) to One Thousand (1,000), both in-
clusive, of the denomination of One Thousand ($1,000.00) Dollars each,
aggregating One Million ($1,000,000.00) Dollars, issued by the City of
Fort Worth, Texas, to provide funds for the further improvement of the
City's Airports System, in accordance with the Constitution and lairs of
the State of Texas, and the Charter of said City and pursuant to an
ordinance passed by the City Council, duly recorded in the minutes of the
City Council.
(Note 3 to Printer)
i
(The City reserves the right to redeem this bond prior
to maturity on October 1. 1975, or on any interest payment date thereafter,
at a price of par and accrued interest to date so fixed for redemption.
3ixty days' notice of such call is to be given in writing to the place of
payment and said notice is to be published in a financial publication pub-
i.jshed in the City of New York, New York. Said notice shall appear in said
publication in at least one issue, the date of said issue being not less
than sixty days prior to the date so fixed for redemption. If such bond is
called for redemption in said manner and if funds sufficient to pay the
redemption price shall have been duly placed in the bank of payment by the
date fixed for redemption, it shall not thereafter bear interest. If fewer
than all of the optional bonds are called for redemption, they shall be
called in their inverse numerical order.)
The date of this bond in conformity with the 73on-1
Ordinance is _,'vpr_!1 1, 1961.
The holder hereof shall never have the right to demand
payment of this obligation out of any funds raised or to be raised by tax-
aticn, but the City is not precluded by this provision, from uLilizin,, any
unds which may be lawfully used for the purpose of makin�, such payment.
This bond and. the series of which it is a part is and
are secured by the obligation of the City to make the payments of principal
and of interest from Gross Revenues to be derived by the City Crow the
operation of its Airports System which have een pled;�ed. to the payment
thereof to the extent and in the manner prescribed in the ordinance authoriz-
ing the issuance thereof.
This bond and all bonds of the series of which it is
one are special obligations of the City of Port Worth, and together with.
City of Fort Worth Airport Revenue Bond.s, Series 1960, and Series 10160-A
are secured equally without priority of any one bond over the other by a
pledge of the Gross Revenues of the City's Airports System as defined in
the authorizing ordinance. The Ci�y reserves the right to issue at one
time or from time to time additional revenue bonds which will participate
equally with the bonds of this Series 1961, the Series 1960 and the Serilco
1960-A above mentioned in the pledge of said revenues, provided that all
such additional bonds are issued in strict accordance with and subject to the
conditions, covenants and limitations set forth in the authorizing ordinance.
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,
including Chapter 43: Acts of the 53rd Legislature, First Called Session,
1954, as amended, and Chapter 13, Acts 1959, 56th Legislature, Second Called
Session, and the Charter of the City; that all acts, conditions and things
required to have been done and to exist preceding and in the issuance of
this bond and to render the same lawful and valid, have been properly done,
have happened and been performed and do exist in regular and due time, form
and manner, as required by the Constitution and laws cf the State of Texas
and the Charter of the City, and that this series of Bonds does not exceed
any constitutional, statutory, or charter limitations, and that provision
has been made for the payment of the principal of and the interest on this
bond and the series of which it is a part, by irrevocably pledging to the
payment thereof, the Gross Revenues to be received from the operation of the
City's Airports System to the extent and in the manner hereinabove prescribed.
IN TESTIMONY 141MREOF the City Council of the City of
Fort Worth, Texas, has caused the seal of said City to be impressed hereon
and this bond to be signed by the facsimile signature of the Mayor of the
City and countersigned manually by the City Secretary, and has caused the
annexed coupons to be signed by the facsimile signatures of the Mayor and
City Secretary as of the date of this bond.
Mayor, City of Fort Worth, Texas.
COUNTERSIGNED:
City Secretary, City of Fort Worth,
Texas.
APPROVED AS TO FORM AND LEGALITY:
City Attorney, City of Fort Worth,
Texas.
- 7 -
;- PASSED AND APPROVED this a" day of �,
q96�1'
o , Ci ort Worth,
ATTEST
C'ty ,cretary, City of Fort Worth,
Texas.
APPROVED ASASr TO FORM AND LEGALITY:
City Attorney.
PASSED .Z , 1961.
- 25 -
(To be printed on back of each bond)
PROVISIONS FOR REGISTRATION
(No writing to be 'placed hereon except
by Bond Registrar)
This bond may be registered as to principal alone on
the books of the City kept by the City Secretary, as Bond Registrar, in his
office in the City Hall in Fort Worth, Texas, upon presentation hereof to
the Bond Registrar who shall make notation of such registration in the
registration blank below, and this bond may thereafter be transferred only
upon a duly executed assignment of the registered owner or his attorney in
such form as shall be satisfactory to the Bond Registrar, such transfer to
be made on such books and endorsed hereon by the Bond Registrar. Such
transfer may be to bearer and thereafter transferability by delivery shall
be restored but this bond shall again be subject to successive registrations
and transfers as before. The principal of this bond, if registered, unless
registered to bearer, shall be payable only to or upon the order of the
registered owner or his legal representative. Notwithstanding the regis-
tration of this bond as to principal alone the coupons shall remain payable
to bearer and shall continue to be transferable by delivery.
DATE OF REGISTRATION NAME OF REGISTERED OWNER SIGNATURE OF BOND
REGISTRAR
9. Form of Coupons; The form of said coupons shall be
substantially as follows;
N0, $
ON THE 1ST DAY OF
, 19
The City of Fort Worth, Texas, out of the revenues
specified in the bond to which this coupon is attached, will pay to the
- 8 -
bearer (unless the bond to v,"itch this oDu-non is attached shall have been
called for prior redemption and provision for payment thereof made as pro-
vided therein) (Note I to Printer) at The First National Bank of Fort Worth,
in the City of Fort Worth, Texas, without exchange or collection charges
to the owner or holder hereof, the sum of
) Dollars in lawful money of the United States of Amer_'ca,
said sun being six (6) months' interest due that day on City of Fort Worth
Airport Revenue Bond, Series 1961, bearing the number hereinafter specified,
dated April 1, 1961. The holder hereof shall never have the right to demand
payment of this obligation out of funds raised or to be raised by taxation.
Bond No.
-City Secretary Mayor.
(Notes to Printer -
Note No. 1 - This parenthetical expression is to be omitted from all bonds
and coupons maturing on October 1, 1975 and prior thereto.
Note No. 2 - Interest rates effective for the respective bonds are as follows!
Bonds Nos. I to both inel., % per annum,
Bonds Nos. /
to ;9 af
per annum;
Bonds Nos. *0/ to cl
4k,07 o per annum",
Bonds Nos. to nim
per am
Bonds Nos. to per annun.
Note No. 3 - This parenthetical par^,graph is to be inserted in all bolacls
maturing on and after October 1, 1;76.
10. Form of Comptroller's Certificate: The farm of
Certificate of the Comptroller of Public f.ccounts of the State of Texas to
be printed on the back of each bond shall be substantially as follows:
OFFICE OF COMPTROLLER
STATE OF TZ-X,^_'
I HEREBY CERTIFY that there is on file and of record in
my office a certificate of the Attorney General of the State of Texas to the
effect that this bond has been examined by him as required by law, and that
he finds that it has been issued in conformity with the Constitution and
laws of the State of Texas, and that it is a valid and binding special obli-
gation of the City of Fort Uorth, Texas, payable from the revenues pledged
to its payment by and in the ordinance authorizing same, and said bond has
this day been registered by me.
9
WITNESS MY SAND and seal of office at Austin, Texas,
Comptroller of Public Accounts of the
State of Texas.
(SEAL)
11. Approval by Attorney General and its Effect.
Registration: That the Mayor shall be authorized to take and have charge
of all necessary records pending investigation by the Attorney General,
and shall take and have charge and control of the bonds herein authorized
pending their approval by the Attorney General. and registration by the
Comptroller'of Public Accounts., Upon registration of said bonds, the
Comptroller of Public Accounts (or a deputy designated in writing to act
for the Comptroller) shall manually sign the Comptroller's certificate of
registration prescribed herein to be printed on the back of each bond, and
the seal of said Comptroller shall be affixed to each of said bonds.
12. Definitions: For all purposes, unless at the
specified point of use a different meaning is clearly indicated the follow-
ing definitions of terms are applicable to-wit:
"Revenue Bonds"means the $2,750,000.00 City of Fort
Worth Airport Revenue Bonds, Series 1960, authorized in the ordinance
passed November 9, 1960, and the $2,250,000.00 of bonds authorized
by ordinance passed November 18, 1960, aggregating $5,000,000.00;
"Additional Bonds" means revenue bonds in excess of
$5,000,000.00, if any, which may be issued by the City under the
terms and restrictions prescribed in Section 20 hereof;
"Airports System" or "System" means the Greater
Fort Worth International Airport, (sometimes referred to as
"Amon Carter Field"), Meacham Field, and any other real property
heretofore or hereafter acquired or operated by the City of Fort
Worth for airport purposes, together with any additions or improve-
ments thereto or changes therein which the City hereafter makes or
authorizes and shall also mean and include any airport or airport
property or property used for airport purposes heretofore or here-
after acquired and used in connection with any ,joint operating
- 10 -
agreement or contract with a municipal or other public corporation
for the creation and operation of an Interregional Airport or Air-
ports;
"Bank of Payment" means The First National Bank of
Fort Worth, Fort Worth, Texas;
"Bond Registrar" means the City Secretary, whose
office is in the City of the City of Fort Worth, at Fort Worth,
Texas;
"City" means the City of Fort Worth, acting in its
corporate capacity;
"City Council" means the governing body of the City
of Fort Worth;
"Gross Revenues" means the total revenues received
by the City from its Airports System and its operations from what-
ever source derived, excluding any rentals (except for ground ren-
tals) from net rent leases now in existence or which may be execut-
ed in the future wherein the lease consideration is pledged or
otherwise utilized to finance the construction of buildings or
facilities for lessee-tenants of the City or acquisition of add.i-
tional lands or facilities, but only for such time and to such ex-
tent in each case as the rentals reserved in the lease and any
extension or renewal thereof (other than ground rent) are required to
be deposited in a separate interest and redemption fund or other
fund in order to meet the City's obligations for interest payments
and principal repayment on the bonds or other instruments of in-
debtedness created to finance the improvement which is the subject
of the lease. Without limiting the generality of the foregoing,
unless especially delimited, "Gross Revenues" will include all of
the income from the ownership and operation of the Airports System
including landing fees and charges, ground rental, space rentals in
buildings, charges of every character made to concessionaires, and
all fees received by the City on account of the operation of limou-
sines or other conveyances to and from the airports;
- 11 -
"Operating Expenses" means expenditures necessary
for the efficient operation, maint enance and utilization of the Air-
ports System and the making of all currently needed repairs and
shall include an operating reserve in an amount certified by the
Director of Aviation of the System as the reasonable amount neces-
sary for one month's cost of operation and maintenance of the Air-
ports System. "Operating Expenses" shall not include any allowance
for depreciation, or renewals or replacements of capital assets of
the System;
"Municipal Airport Fund" means the special fund
heretofore created pursuant to Article 46d-11, Vernon's Revised
Civil Statutes of Texas, 1925, as amended, into which the revenues
obtained by the City of Fort Worth from the ownership control and
operation of the Airports System are deposited as received.
13. Pledge of Revenues: All of the Gross Revenues of
the Airports System are hereby irrevocably pledged in an amoiint sufficient
for the payment of the outstanding Airport Revenue Bonds,the bonds
authorized by this ordinance and any Additional Bonds which may be issued
in accordance with Section 20 hereof, and the interest thereon, and it is
hereby ordained that said bonds and any Additional Bonds, and the interest
thereon shall constitute a first claim upon said Gross Revenues.
14. Rates: The City covenants that it will fix,
establish, maintain and collect such rates, fees, rentals and other
charges for the use of the services and facilities of the Airports System,
as will provide revenues and income in an amount each fiscal year suffi-
cient (1) to pay the principal of and interest on the Revenue Bonds, the
bonds authorized by this ordinance and any Additional Bonds, if issued,
as such principal and interest matures and becomes due in each fiscal
year, (2) to provide and maintain the debt service reserve hereinafter
required to be established, and (3) which, together with the proceeds of
the ad valorem tax levied in Section 15 hereof, will pay all Operating
Expenses of the System. The rates, fees, rentals and other charges in
effect at the time of the sale and delivery of the Bonds will not be
changed so as to reduce the aggregate yield from such rates, fees,
- 12 -
rentals and charges unless and until a report shall have been filed with
the City by an independent firm of Certified Public Accountants, based on
the experience record of the Airports System, demonstrating that such
change can be made without impairing any of the City's Obligations here-
under.
15. Pledge to Payment of Operating Expenses: The
Gross Revenues remaining after provision has been made for the payments
required by Section 17 of this Ordinance and Section 17 of the ordinances
passed November 9, 1960, and November 18, 1960, shall be used for and are
hereby pledged to the payment of Operating Expenses of the Airports System.
In addition to such pledge of revenues to the payment of Operating Expenses
and as a supplement to said pledge of revenues to such use, there is here-
by levied and pledged to the payment of such Operating Expenses an ad
valorem tax of not exceeding Five (50) Cents on each One Hundred ($100.00)
Dollars of assessed valuation of taxable property in the City. A tax at
not exceeding said rate, or so much thereof as may be required to assure
the efficient operation and maintenance of the Airports System, shall be
annually assessed and collected and the proceeds thereof applied solely
to such purpose, provided, the tax thus to be assessed and collected in
any year shall be at such rate (not to exceed 50 on each $100.00 of
assessed valuation) as will make, raise and produce a sum sufficient to
supply the difference between the amount required to pay Operating Ex-
penses in the next :Fiscal year, as estimated in the City's annual Budget
and the amount estimated by said Budget to be available for such purpose
from revenues and income of the System.
16. Municipal Airport Fund: All receipts from the
ownership and operation of the Airports System, included within the
definition of Gross Revenues, promptly after coming into the possession
of the City or its employees shall be deposited in the "Gross Revenue
Account", created by the ordinance passed November 9, 1960. All proceeds
from the collection of the tax levied under the provisions of Section 15
of this ordinance shall be deposited as collected in the "Airport Special
Tax Account", created by said ordinance passed November 9, 1960.
- 13 -
The moneys in the Gross, Revenue Account shall be, ap-
plied as hereinafter provided and pending such application, shall be sub-
ject to a lien and charge in favor of the holders of the Revenue Bonds,
the bonds herein authorized and any Additional Bonds to be. outstanding
hereunder.
The moneys in the Airport Special Tax Account, toCether
with any moneys remaining in the Gross Revenue Account after proper appli-
cation thereof to the payments into the Interest and Redemption Fund, shall
be used to pay Operating Expenses of the System.
17. Interest and Redemption Fund: It shall be the duty
of the City, on or before the 15th day of each month, to transfer from the
Gross Revenue Account to the Bond Fund the followin(T amounts:
(a) In addition to the sums required by the ordinances
passed November 9, 1960, and November 18, 1960, to be deposited in
the Bond Fund, a sum in equal installments sufficient to pay the
amount of interest scheduled to mature on the Bonds on the next and
each succeeding semi-annual interest payment date and. beginning on
the 15th day of October, 'o
1.,,64, such an amount as shall be equal to
not less than one-twelfth (1/12) of the amount of principal of the
Bonds maturing on the next principal maturity date; and
(b) Such sum to the credit of the Reserve Account
as shall be equal to 20% of the sum transferred. under clause (a)
above, until there shall have been accl�ulated therein ar, amount of
money equal to not less than the average annual principal and inter-
est requirements for all bonds issued pursuant to this ordinance,
said ordinance passed November 9, 1960, and said ordinance passed
November 1.8, 1960, provided that whenever said Reserve Account is
reduced below such amount, such payments shall be resuined and con-
tinued until such amount has been restored. The Reserve Account
is hereby irrevocably pledged for the purpose of and shall be used.
solely to pay principal of and interest on the bonds issued by this
ordinance and the Revenue Boads falling due at any time when there
is not sufficient money in the Bond Fund for such purpose. The d,,,ty
- 14 -
to make any transfers into this Account shall be subordinate to
the duty to make the transfers into the Bond Fund, if at any time
there is insufficient money in the Gross Revenue Account to make
both such payments in full. Whenever any Additional Bonds are
issued, the aggregate amount to be maintained in the Reserve Account
shall be increased to an amount not less than an amount equivalent to
the average annual principal and interest requirements of the Revenue
Bonds, any Additional Bonds then outstanding and the Additional
Bonds then proposed to be issued.
18. Investment of Funds: Money in the Reserve
Account may be invested in direct obligations of or obligations guaranteed
by the United States. No investments shall be made in such obligations
maturing beyond the final maturity date of the Revenue Bonds or the bonds
herein authorized. Any obligations in which money is so invested shall
be kept in trust by the City, and a sufficient amount thereof shall be
promptly sold and the proceeds of sale applied to the making of payments
required to be made from the Reserve Account, whenever such payments are
necessary to be made and to the extent money in the Reserve Account may
be insufficient to make such payment.
19. Municipal Airport Fund Balances: Money remaining
in the Gross Revenue Account at the close of business on September 30 of
any year after making adequate provision for the funds prescribed and after
taking care of all other legal obligations, if any, against the Municipal
Airport Fund and after retaining therein an amount certified by the Director
of Aviation of the System as sufficient to pay estimated expenses of
Operation for a period of two months (including the amount in the Operating
reserve), may be utilized by the City for any one or more of the following:
(a) capital improvements to the Airports System;
(b) purchase or redemption of airport revenue bonds
prior to scheduled maturity;
(c) payment into the Interest and Redemption Fund
or the Reserve Account;
(d) payment of principal of and interest on any
general obligation bonds issued by the City
for airport purposes.
- 15 -
20. Additional Bonds: The City reserves the right to
issue Additional Bonds payable from and secured by a pledge of the Gross
Revenues of the Airports System in accordance with the Constitution and
laws of the State of Texas and under its Home Rule Charter powers, pro-
vided that the conditions imposed by this Section are met, to-wit:
(a) That the City shall not at the time be in default
as to any covenant, condition or obligation prescribed herein;
(b) That the City shall have procured from a firm
of Independent Certified Public Accountants a certificate showing
that the average of the Gross Revenues of the Airports System dur-
ing the two fiscal years immediately preceding the date of delivery
of the Additional Bonds are equal to a minimum of two and one-half
times the average annual principal and interest requirements of the
Revenue Bonds and any Additional Bonds which may then be outstand-
ing, plus the average annual principal and interest requirements
of the Additional Bonds then proposed to be issued; provided that
in calculating such average annual requirements the amount of the
Reserve Account may be deducted from the principal requirement of
the final year of maturity of the Revenue Bonds, any Additional
Bonds then outstanding, and the Additional Bonds proposed to be
issued;
(c) That the City shall have procured from a firm
of recognized Engineers and Financial Consultants a certificate
certifying that the Gross Revenues of the Airports System during
the fiscal year immediately preceding the date of the Additional
Bonds, together with the average annual Gross Revenues estimated
to be; derived from the operations of the enlargements, extensions
and improvements of the Airports System to be constructed or ac-
quired with the proceeds of the Additional Bonds proposed to be
issued, are equal to a minimum of two and one-half times the average
annual principal and interest requirements of the Revenue Bonds,
any Additional Bonds which may then be outstanding, and the Additi(n
al Bonds then proposed to be issued; provided, that in calculatin.,
- 16 -
such average annual requirements the amount of the Reserve Account
may be deducted from the principal requirement of the final year
of maturity of the Revenue Bonds, any Additional Bonds which may
then be outstanding, and the Additional Bonds then proposed to be
issued;
(d) That the principal and interest shall be
scheduled to mature at times corresponding to the months of matur-
ity thereof scheduled for the bonds authorized by this ordinance;
(e) That the requirements of the laws of the State
and of the Charter of the City have been fully complied with as
to issuance, approval and delivery of the Additional Bonds.
21. Other Covenants: The City makes these covenants
for the benefit of the owners and holders of the Revenue Bonds and any
Additional Bonds, if issued, viz:
(a) That while any of the Revenue Bonds or Addition-
al Bonds or interest thereon are outstanding and unpaid the City
will continue to operate and maintain the Airports System within
the funds pledged thereto and will not cause or suffer such cur-
tailment of the general use of the Airports System as will interfere
with the prompt performance of all of the City's obligations and
covenants; and that the Gross Revenues from any investment in
other airport properties will immediately be subjected to the
pledge securing the Revenue Bonds and any Additional Bonds then
outstanding;
(b) That it will duly and punctually pay or cause
to be paid out of the pledged revenues the principal of all of the
Revenue Bonds and Additional Bonds and interest thereon on the dates
and at the places and in the manner mentioned in such bonds and in
the coupons thereto appertaining, according to the true intent and
meaning thereof, and that it will faithfully do and perform, and
at all times fully observe any and all covenants, undertakings
and provisions contained herein or in any of said Bonds;
- 17 -
(c) That it will not directly or indirectly extend
or assent to the extension of the time of payment of any of the
coupons or claims for interest in respect of any of said bonds by
purchase or funding of such coupons or claims for interest or by
any other arrangement, except under circumstances that if the time
for payment of any such coupons or claims for interest shall be ex-
tended, such coupons or claims for interest shall not be entitled,
in case of any default hereunder to the benefits of the Interest
and Redemption Fund, except subject to the prior payment of the
principal of all of the said bonds then outstanding and of such
portion of the interest thereon as shall not be represented by such
extended coupons or claims for interest;
(d) That the City has been duly created and is
operating under the laws of the State of Texas and its Home Rule
Charter and has lawful authority to issue the Revenue Bonds and
to perform all covenants and obligations undertaken,•
(e) That for the protection of the Municipal Airport
Fund the City will cause to be carried or provided, comprehensive
insurance to the extent of its reasonable value on all insurable
property of the Airports System, and within reasonable and cus-
tomary limits liability and property damage insurance;
(f) That the City will duly observe and comply with
all valid requirements of all Governmental authorities relative to
the operation of the Airports System and will maintain and operate
with prudence its general facilities while the Revenue Bonds,
Additional Bonds, or any of them, or any interest thereon, are
outstanding and unpaid;
(g) That the City has not created nor will it
create any obligation against the Gross Revenues which is or can
be superior to or of equal rani: with the pledge of Gross Revenues
securing the Revenue Bonds, other than Additional Bonds when issued
subject to the restrictions contained herein, which may be secured
by a pledge of Gross Revenues of equal rank with the pledge secur-
ing the Revenue Bonds;
- 18 -
(h) That while any of the Revenue Bonds'or Additional
Bonds or interest thereon are outstanding and unpaid the City will
not supply space, services or privileges, without making commensurate
charges therefor, except to the extent actually required and shown
to be required under applicable statutes to supply such space, privi-
leges and services to the Federal Government;
(i) That the City warrants that all of the land con-
tained in the Airports System as now comprehended was acquired from
private owners, and that the City now owns and has good title thereto;
W That the City will maintain airport zoning sub-
stantially as is provided in the present zoning ordinance unless and
until some lesser airport zoning protection might become acceptable
under Civil Aeronautics Administration Recommended Standards;
(k) That no contract under which the City will grant
privileges or provide services or space in the Airport Terminal
Buildings or Airport Terminal Areas (except contracts which provide
for a fixed minimum rental or a percentage of the gross income,
whichever is larger) shall be for a term exceeding five (5) years
unless (1) they be negotiated on a net rent basis, or (2) they con-
tain provisions for the renegotiation of the amount of rental pay-
ment without limit at intervals of not more than five years beginning
with the date of any such contract. No contract which provides for
a fixed minimum rental or a percentage of the gross income, which-
ever is larger, shall be for a term exceeding ten (10) years, unless
it contains provision for the renegotiation of the fixed minimum
rental or of the percentage of the gross income without limit at the
end of the initial ten years, and at the end of each five year period
thereafter;
(1) That the City will not dispose of any of the
properties constituting the Airports System unless and until such
property has been declared by the City to be surplus and no longer
needed for the proper operation of the Airports System. The proceeds
from the sale of such improvements will be deposited in the Gross
Revenue Account;
- lq -
(m) (1) That competent personnel for the Airports
System will be employed to administer it in accordance with sound
business principles,
(2) That the City will keep the facilities in good
condition, and will make all needed repairs, renewals, replacements,
extensions and improvements, including non-recurring and periodic
items of maintenance;
(3) That the City Engineer will make an inspection
of the System after the close of each fiscal year, and will prepare
a report as to the condition of the physical facilities thereof and
submit same to the City Manager within thirty (30) days after the
close of each fiscal year. Such report shall include a certificate
of the City Engineer as to satisfactory condition, or as to generally
satisfactory conditions with such exceptions as he shall deem appro-
priate. A copy of such report shall be furnished to any bondholder
upon written request and any bondholder may inspect the System at
reasonable times and under reasonable conditions.
(n) That any amounts received as awards as a result
of the taking of all or any part of the Airports System by the lawful
exercise of eminent domain, if and to the extent that such right can
be exercised against such property of the City, will be placed in the
Municipal Airport Fund.
22. Accounting Records: The City shall cause to be
installed and kept proper records and accounts as provided in this ordinasice,
separate from all other records and accounts of the City, in which com-
plete and correct entries shall be made of all fiscal and financial trans-
actions relating to the Airports System, such records and accounting shall
conform as nearly as possible to the method of accounting instituted and
enforced in the Department of Finance of the City. The City shall cause
an audit to be made after the close of each fiscal year by an independent
Certified Public Accountant or firm of Certified Public Accountants, andf4r
a report of such audit to be prepared which may be published as a section
of the overall City audit report or separately therefrom, at the option
of the City.
- 20
23. Accounting Reports: Within one hundred twenty
(120) days after the close of each fiscal year while any of the Revenue
Bonds or Additional Bonds or interest thereon are outstanding and unpaid,
the City will cause to be mailed one copy each of such audit report to the
Bank of Payment and to the original purchasers of the Revenue Bonds, and
will keep available for examination copies of such current audit report at
the office of the Director of Aviation and the City Secretary. A copy of
the current audit report will be mailed by the City to any subsequent bond-
holder and to the Municipal Advisory Council, Austin, Texas, upon request.
F,a.ch such audit report shall include the following:
(a) A balance sheet as of the end of such fiscal
year, including a statement of the cash balances and list of securi-
ties, if any, to the credit of the Municipal Airport Fund, including
the accounts created within such Fund, the Interest and Redemption
Fund, and the Reserve Account separately as an account within the
Interest and Redemption Fund;
(b) A detailed statement of the income and expendi-
tures for account of the Airports System for such year, including
statements of the beginning balances, income credited to, expendi-
tures charged against, and ending balances of the Municipal Airport
Fund, the Interest and Redemption Fund; and the Reserve Account, in-
cluding interfund transfers, if any, as herein. authorized;
(c) A list of the insurance policies in force at the
end of the fiscal year on the Airports System properties, setting out
as to each policy the amount thereof, the risk covered, the name of
the insurer, and the policy's expiration date;
(d) A statement that the securities specified therefor
have been on deposit as security for the money in the several Funds
prescribed throughout the fiscal year, and a list of the securities,
if any, in which the reserve portion has been invested;
(e) A certificate by the auditor making said report
that in his opinion the City is not in default as to compliance with
any of the covenants made in this ordinance or any ordinance
- 21 -
subsequently passed authorizing the issuance of other or Additional
Bonds as permitted by this ordinance.
24. Issuance of Refunding Bonds: If it shall be found
desirable to refund part of the Revenue Bonds or Additional Bonds under the
provisions of any law then applicable, such bonds may be refunded (with the
consent of the holders thereof, unless the bonds so refunded are then
optional for redemption and provision for the call and redemption thereof
is duly made) and the refunding revenue bonds so issued shall enjoy com-
plete equality with the portion of the Revenue Bonds or Additional Bonds
which is not refunded, and the refunding revenue bonds in like principal
amount shall continue to enjoy in all respects the right to security under
this ordinance enjoyed by the bonds refunded thereby, provided, however,
that if any of the bonds are refunded in such manner as to require an in-
creased amount of money for the payment of principal and interest in any
year prior to the maturity of any of the bonds not then being refunded,
then such portion of the bonds may not be refunded without the consent
of the holders -)f the unrefunded portion of the bonds maturing during and
after the year in which the amount required for payment of principal and
interest is so increased.
25. Remedies in Event of Default: In addition to all
the rights and remedies provided by the laws of the State of Texas, the
City covenants and agrees particularly that in the event the City (a) de-
faults in the payment of principal of or interest on any of the Revenue
Bonds or Additional Bonds when due, (b) fails to cause to be made the
transfers to Finds required, or (c) defaults in the observance or per-
formance of any of its covenants, conditions or obligations, the follow-
ing among other remedies shall be available:
(1) The holders of not less than 25% of the bonds
shall be entitled to a writ of mandamus issued by a court of proper
jurisdiction compelling and requiring the City Council and other
officers of the City to observe and perform any covenants, obli-
gations or condition prescribed in the ordinance authorizing any
such bonds; and in the event the default involves the failure to
pay interest or principal, or both, when due, the holder of any
bond shall be entitled to seek such relief;
- 22 -
(2) No delay or omission to exercise any right or
power accruing upon any default shall impair any such power or
right or shall be construed to be a waiver of any such default
or acquiescence therein, and every such right and power may be
exercised from time to time and as often as may be deemed expedient.
The specific remedies herein provided shall be cumulative of all other
existing remedies and the specification of such shall not be deemed to
be exclusive.
26. Sale, Lease or other Encumbrance of System:
The City hereby covenants,binda and obligates itself not to sell, mortgage
or in any manner dispose of the Airports System, its properties or any
part thereof, including any and all extensions and improvements thereof,
and it acknowledges and accepts restraint from doing so until the Revenue
Bonds and Additional Bonds shall have been paid in full as to both prin-
cipal and interest at maturity or under the provisions hereof relating to
their redemption prior to maturity, or until other arrangements have been
made for continuance of payment of principal and interest then outstanding
for the full retirement thereof; provided, however, that (a) this covenant
shall not be construed to prevent the disposal by the City of property
which in its judgment has become inexpedient to use in connection with
the Airports System because of obsolescence or otherwise, and (b) this
covenant and the express covenant of the City to continue to operate and
maintain the Airports System in accordance with the provisions of Section
21(a) hereof shall not be construed to prevent the City entering into a
joint operating agreement or otherwise contracting with a municipal or
other public corporation for the creation and operation of an Interregion-
al International Airport or Airports at Amon Carter Field or elsewhere,
but the execution of any such joint operating agreement or other contract
shall not relieve the City of any of its obligations or undertakings
hereunder, unless proper and lawful provision is made for the complete
assumption of such obligations and undertakings by such municipal or
other public corporation.
- 23 -
27. Aviation Board: During the time any of the
Revenue Bonds or any Additional Bonds issued hereunder are outstanding
and unpaid the management and control of the Airports System shall be -
vested in the Aviation Board established by Ordinance No. 4294, passed by
the City Council of the City of Fort Wo-th and which Board shall have all
of the powers, rights and duties in the operation of said System as are
conferred or imposed by said Ordinance iQo. 4294, or as may be hereafter
conferred or imposed by the City Council by amendment thereto.
28. Ordinance to Constitute Contract: That the pro-
visions of this ordinance shall constitute a contract between the City and
the holder or holders from time to time of the Revenue Bonds or of the
Additional Bonds and after the issuance of any of said bonds.
29. Delivery of Bonds: After registration by the
Comptroller, the bonds herein authorized shall be delivered to the City,
or its designee, for delivery to the proper purchaser or purchasers
thereof. The Mayor, City Secretary and City Treasurer are authorized and
directed to do any and all things necessary or convenient to effect
delivery of said bonds to the purchaser or purchasers thereof.
30. Sale of Bonds: The sale of said bonds to
�-t�/. Ea�C/✓.nn��. . �.'c' 7^- C@ C�-GCHI. %���c1�lr-t'.�LG��'_
at a price of par and accrued interest to date of delivery, plus a premium
of $ --�'e , being the highest and best bid, is hereby in all things
ratified and confirmed, and the officials, employees and agents of the
City are authorized and directed to take such actions and execute such
instruments and documents as may be necessary to make prompt delivery of
said bonds to the purchasers and receive the proceeds thereof for the
benefit of the City.
31. Emergency. The fact that the City of Fort Worth
is in great need of fluids for enlarging, extending, repairing and improving
its Airports System creates an urgency and an emergency, for the immediate
preservation of public health, peace and safety and requires that this
ordinance shall take effect immediately upon and after its passage, and
it is accordingly so ordained.
- 24 -