HomeMy WebLinkAboutOrdinance 3316 ORDINANCE N0. ie f
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF REVENUE BONDS OF
THE CITY OF FORT WORTH IN THE AGGREGATE PRINCIPAL AMOUNT OF
THREE MILLION, FIVE HUNDRED THOUSAND DOLLARS ($3,500,000.00),
IN ADDITION TO AN INSTALLMENT OF THREE MILLION DOLLARS ($3,-
000,000.00) OF REVENUE BONDS HERETOFORE ISSUED AND SOLD OUT
OF AN AUTHORIZED ISSUE OF FIFTEEN MILLION DOLLARS ($15,000,-
000.00) AND IN ADDITION TO EIGHTEEN MILLION DOLLARS ($18,000,-
000.00) OF REVENUE BONDS PREVIOUSLY AUTHORIZED AND ISSUED,
TO FINANCE THE IMPROVEMENT, EXTENSION AND ENLARGEMENT OF THE
CITY'S WATER AND SEWER SYSTEMS; PROVIDING FOR THE PAYMENT OF
SUCH BONDS SOLELY FROM THE REVENUES OF SUCH SYSTEMS; PLEDGING
A PORTION OF SUCH REVENUES TO SUCH PAYMENT; ENTERING INTO CER-
TAIN COVENANTS AND AGREEMENTS WITH RESPECT TO THE OPERATION
OF SUCH SYSTEMS AND THE APPLICATION OF THE REVENUES DERIVED
THEREFROM; AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH.
WHEREAS, the City of Fort Worth (hereinafter referred to as City) has
established, and for many years has maintained and operated, and is now
maintaimi.ng 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 in-
habitants and to conserve, treat and dispose of such water, and also a sys-
tem (hereinafter referred to as the City Sewer System) used or useful for
the collection, treatment and disposal of sewage and waste; and,
WHEREAS, at an election duly called and held in the City on January
25, 1949, a majority of the qualified voters of the City voted in favor of
each of the following two propositions:
PROPOSITION NO. 1
Shall the City of Fort Worth, Texas, through its City Coun-
cil, issue its negotiable coupon bonds in the principal sum of
Twelve Million, Four Hundred Thousand Dollars ($12,400,000.00)
for the purpose of improving, extending and enlarging the Water-
works System of said City, said bonds to be issued at one time
or in installments from time to time as the City Council shall
determine, the bonds of each installment being payable serially
as may be determined by the City Council, so that the last ma-
turing bonds shall become payable within forty (40) years from
the date thereof, and bearing interest at a rate not to exceed
four per cent (4%) per annum from the date thereof, payable semi-
annually, and to provide for the payment of principal and in-
terest on said bonds by pledging the net revenues from the opera-
tion of the Waterworks System of said City, or in the event that
the City Council be authorized to issue Sever System revenue
bonds as submitted in Proposition No. 2, to be secured addition-
ally by a pledge of the net revenues from the operation of said
Sewer System?
PROPOSITION NO. 2
Shall the City of Fort Worth, Texas, through its City Coun-
cil, issue its negotiable coupon bonds in the principal sum of
Five Million, Six Hundred Thousand Dollars ($5,600,000.00) for
the purpose of improving, extending and enlarging the existing
Sewer System of said City, said bonds to be issued at one time
or in installments from time to time as the City Council shall
determine, the bonds of each installment being payable serially
as may be determined by the City Council, so that the last matur-
ing bonds shall become payable within forty (40) years from the
date thereof, and bearing interest at a rate not to exceed four
per cent (4%) per annum from the date thereof, payable semi-
annually, and to provide for the payment of principal and inter-
est on said bonds by pledging the net revenues from the operation
of the Sewer System of said City, or in the event that the City
Council be authorized to issue Waterworks System revenue bonds
as submitted in Proposition No. 1, to be secured additionally by
a pledge of the net revenues from the operation of said Water-
works System?;
and,
WHEREAS, the ordinance calling said election provided that if both
propositions were duly approved at said election, the City Council could, at
its option, combine the Twelve Million, Four Hundred Thousand Dollars ($12,-
400,000.00) Waterworks System Revenue Bonds and the Five Million, Six Hun-
Bred Thousand Dollars ($5,600,000.00) Sewer System Revenue Bonds into one
issue and pledge the Net Revenues from the operation of both the Waterworks
System and the Sewer System to the payment of the principal of and the in-
terest on said entire issue of bonds; and,
WHEREAS, the City Council of the City of Fort Worth, Texas, by ordinance
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 com-
bined 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 issuance of Two Mil-
lion, 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 in-
clusive; 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 Mil-
lion, Two Hundred and Fifty Thousand Dollars ($4,250,000.00) of Water and
Sewer Revenue Bonds combined in one issue, said bonds being numbered from
ten thousand, six hundred and fifty-one (10,651) to fourteen thousand, nine
hundred (14,9o0), both inclusive; and the said City Council, by ordinance
duly adopted on the 18th day of February, 1953, did authorize the issuance
of Three Million, One Hundred Thousand Dollars ($3,100,000.00) of Water and
Sewer Revenue Bonds combined in one issue, said bonds being numbered from
fourteen thousand, nine hundred and one (14,901) to eighteen thousand (18,000),
both inclusive; and,
WHEREAS, it was provided in all of the ordinances authorizing the is-
suance of said bonds pursuant to the authority granted by a majority of the
resident, qualified electors of the City owning taxable property in the City,
and who had duly rendered same for taxation, voting at an election held for
that purpose on January 25, 1949, that the City of Fort Worth might issue
additional bonds payable from the Debt Service Fund created by the first ordi-
nance and secured, equally and ratably with the bonds authorized by said ordi-
nances, by a pledge of the Revenues of the Systems in the event the City
shall have been authorized by law to issue them and conditioned
(a) That the additional bonds shall be issued for the pur-
pose 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 is-
suance 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 addi-
tional bonds then outstanding (including issued bonds as herein-
after defined) and the additional bonds about to be issued; and
(d) That the principal of the additional bonds shall be made
payable on March let of the years in which such principal is pay-
able, and that the interest on the additional bonds shall be
made payable semi-annually on September 1st and March let;
and,
WHEREAS, a majority of the resident, qualified electors of the City
owning taxable property in the City, and who had duly rendered same for
taxation, voting at an election held for that purpose on January 26, 1954,
voted in favor of each of the two following propositions:
PROPOSITION NO. 1
Shall the City of Fort Worth, Texas, through its City Coun-
cil, issue its negotiable coupon bonds in the principal sum
of Ten Million Dollars ($10,000,000.00), in addition to bonds
of the aggregate principal amount of Twelve Million, Four Hun-
dred Thousand Dollars ($12,400,000.00) heretofore issued by the
City pursuant to a proposition adopted by a majority vote of
the qualified electors of the City at a special election held
on January 25, 1949, for the purpose of improving, extending
and enlarging the Waterworks System of said City, said bonds to
be issued at one time or in installments from time to time as
the City Council shall determine, the bonds of each installment
being payable serially as may be determined by the City Council,
so that the last maturing bonds shall become payable within
forty (40) years from the date thereof, and bearing interest at
a rate not to exceed four and one-half per cent (4-1/2%) per an-
num from the date thereof, payable semi-annually, and to provide
for the payment of principal and interest on said bonds by pledg-
ing the net revenues from the operation of the Waterworks System
of said City, or in the event that the City Council be authorized
to issue Sewer System revenue bonds as submitted in Proposition
No. 2, to be secured additionally by a pledge of the net revenues
from the operation of said Sewer System?
PROPOSITION NO. 2
Shall the City of Fort Worth, Texas, through its City Coun-
cil, issue its negotiable coupon bonds in the principal sum of
Five Million Dollars ($5,000,000.00), in addition to bonds of
the aggregate principal amount of Five Million, Six Hundred Thou-
sand Dollars ($5,600,o00.00) heretofore issued by the City pur-
suant to a proposition adopted by a majority vote of the quali-
fied electors of the City at a special election held on January
25, 1949, for the purpose of improving, extending and enlarging
the existing Sewer System of said City, said bonds to be issued
at one time or in installments from time to time as the City Coun-
cil 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 ex-
ceed four and one-half per cent (4-1/2%) per annum from the date
thereof, payable semi-annually, and to provide for the payment
of principal and interest on said bonds by pledging the net reve-
nues 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. 11 to be se-
cured additionally by a pledge of the net revenues from the opera-
tion 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 Ten Million Dollars ($10,000,000.00) Waterworks
System Revenue Bonds and the Five Million Dollars ($5,000,000.00) Sewer Sys-
tem Revenue Bonds into one issue and pledge the Net Revenues from the opera-
tion of both the Waterworks System and the Sewer System to the payment of
the principal of and the interest on said entire issue of bonds; and,
WHEREAS, the City Council of the City of Fort Worth, Texas, by ordi-
nance duly adopted on the loth day of March, 1954, did authorize the is-
suance of Three Million Dollars ($3,000,000.00) of Water and Sewer Revenue
Bonds combined in one issue, said bonds being numbered from one (1) to three
thousand (3,000), both inclusive; and,
WHEREAS, it was provided in said ordinance authorizing the issuance of
said bonds pursuant to the authority granted by a majority of the resident,
qualified electors of the City owning taxable property in the City, and who
had duly rendered same for taxation, voting at an election held for that pur-
pose on January 26, 1954, 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 authorized by said ordinance,
by a pledge of the Revenues of the Systems in the event the City shall have
been authorized by law to issue them and conditioned
(a) That the additional bonds shall be issued for the pur-
pose 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 issu-
ance 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 lst of the years in which such principal is
payable, and that the interest on the additional bonds shall be
made payable semi-annually on September 1st and March lst;
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 issuance
of Sias Million Dollars ($6,000,000.00) Water and Sewer Revenue Bonds, adopted
the 28th day of February, 1951, which ordinance was amended the 7th day of
March, 1951, and authorizing the issuance of Four Million, Two Hundred and
Fifty Thousand Dollars ($4,250,000.00) Water and Sewer Revenue Bonds, adopted
the 27th day of February, 1952, and authorizing the issuance of Three Million,
One Hundred Thousand Dollars ($3,100,000.00) Water and Sewer Revenue Bonds,
adopted the 18th day of February, 1953, and authorizing the issuance of
Three Million Dollars ($3,000,000.00) Water and Sever Revenue Bonds, adopted
the loth day of March, 1954; that the amount of the average annual Net Reve-
nues of the Systems computed by dividing by two the Net Revenues for the two
fiscal years I diately 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 1st of
the years in which such principal is payable, and the interest on the ad-
ditional bonds shall be made payable semi-annually on September lst and
March 1st of each year, respectively; and,
WHEREAS, Six Million, Six Hundred Thousand Dollars ($6,600,000.00) of
said bonds authorized by said ordinances adopted on April 20, 1949, Septem-
ber 14, 1949, February 28, 1951, which ordinance was amended on March 7,
1951, February 27, 1952, February 18, 1953, and March 10, 1954, were issued
for the purpose of improving, extending and enlarging the City Sewer System
and Fourteen Million, Four Hundred Thousand Dollars ($14,400,000.o0)of said
bonds authorized by said ordinances were issued for the purpose of improving,
extending and enlarging the City Water System; and,
WHEREAS, it is deemed wise and expedient by the City Council of the
City of Fort Worth, Texas, in the exercise of the discretion reposed in it
by law, that Three Million, Five Hundred Thousand Dollars ($3,500,000.00) of
said bonds out of the issue of Fifteen Million Dollars ($15,000,000.00) au-
thorized 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 Three Million Dol-
lars ($3,000,000.00) of said bonds heretofore issued and sold out of said
authorized issue of Fifteen Million Dollars ($15,000,000.00) and 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 resi-
dent, 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 bonds to be issued being a part of Series 86, designated "Water
and Sewer Revenue Bonds"; and,
WHEREAS, the following terms, where used in this ordinance, unless the
context shall indicate another or different meaning or intention, are to be
construed and used and are intended to have meanings as follows:
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, Seven Hundred and Fifty
Thousand Dollars ($2,750,000.00) for the purpose of improving, extending
and enlarging the City Water System, and bonds of the City, being a part of
the bonds referred to in Proposition No. 2 submitted at said election held
on January 26, 1954, set forth in the preamble of this ordinance, shall be
issued at this time in the aggregate principal amount of Seven Hundred and
Fifty Thousand Dollars ($750,000.00) 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 defined in Section 401 of this ordinance.
The credit of the City shall not be pledged for the payment of the Bonds.
The holder or holders of the Bonds shall never have the right to demand pay-
ment thereof out of any funds raised or to be raised by taxation.
Section 102. The Bonds are hereby authorized and shall be issued pur-
suant to the Constitution and statutes of the State of Texas, including par-
ticularly Articles 1111 to 1118, inclusive, of the 1925 Revised Civil Stat-
utes of Texas, as amended.
Section 103. The Bonds shall be thirty-five hundred (3,500) in number,
numbered from three thousand and one (3,001) to sixty-five hundred (6,500),
inclusive, and of the denomination of One Thousand Dollars ($1,000.00) each,
shall be dated March 1, 1955, and shall mature serially in numerical order on
March 1st of each year, as follows:
Year Amount Bond Numbers
1956 $140,000.00 3,001 to 3,140
1957 14o,000.00 3,141 to 3,280
1958 140,000.00 3,281 to 3,420
1959 14o,000.00 3,421 to 3,56o
1960 140,000.00 3,561 to 3,700
1961 140,o00.0o 3,701 to 3,840
1962 140,000.00 3,841 to 3,980
1963 140,000.00 3,981 to 4,120
1964 14o,000.00 4,121 to 4,26o
1965 140,000.00 4,261 to 4,400
1966 140,000.00 4,401 to 4,54o
1967 140,000.00 4,541 to 4,68o
1968 14o,000.00 4,681 to 4,82o
1969 14o,000.00 4,821 to 4,96o
1970 140,000.00 4,961 to 5,100
1971 140,000.00 5,101 to 5,240
1972 14o,000.00 5,241 to 5,380
1973 140,000.00 5,381 to 5,520
1974 140,000.00 5,521 to 5,66o
1975 14o,000.00 5,661 to 5,800
1976 140,000.00 5,801 to 5,940
1977 140,000.00 5,941 to 6,o8o
1978 140,000.00 6,081 to 6;220
1979 14o,000.00 6,221 to 6,360
1980 140,000.00 6,361 to 6,500
The interest on each Bond shall be payable semi-annually on September lst
and March 1st of each year until the City's obligation with respect to the
payment of the principal sum thereof shall be discharged. The Bonds shall
be payable, with respect to both principal and interest, at the principal
office of The Hanover Bank, in the Borough of Manhattan, City and State of
New York, in such coin or currency of the United States of America as at
the time of payment shall be legal tender for the payment of public and pri-
vate debts. The Bonds which mature subsequent to March 1, 1966, shall be
redeemable prior to their respective maturities, as provided in Article II
of this ordinance.
Section 104. The Bonds numbered from three thousand and one (3,001)
to thirty-five hundred and sixty (3,560), inclusive, shall bear interest at
the rate of four and one-half per centum (4-1/2%) per annum; the Bonds num-
bered from thirty-five hundred and sixty-one (3,561) to forty-four hundred
(4,400), inclusive, shall bear interest at the rate of one and ninety-hun-
dredths per centum (1.90%) per annum; the Bonds numbered from forty-four
hundred and one (4,401) to forty-eight hundred and twenty (4,820), inclusive,
shall bear interest at the rate of two per centum (2%) per annum; the Bonds
numbered from forty-eight hundred and twenty-one (4,821) to fifty-three
hundred and eighty (5,380), inclusive, shall bear interest at the rate of
two and ten-hundredths per centum (2.10%) per annum; and the Bonds numbered
from fifty-three hundred and eighty-one (5,381) to sixty-five hundred (6,500),
inclusive, shall bear interest at the rate of two and one-quarter per centum
(2-1/4$) per annu-.
Section 105. The Bonds shall be payable to bearer, without privilege
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 represent-
ing interest payable on the Bonds shall bear the facsimile signatures of
the Mayor and City Secretary. Each successive holder of each Bond, and each.
successive holder of each of the coupons attached to the Bonds, is conclusive-
ly presumed to forego and renounce his equities in favor of subsequent hold-
ers 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 there-
of, howsoever such possession may have been acquired, and that any holder
who shall have taken such Bond or any of su4* coupons from any person for
value and without notice thereby has acquired absolute title thereto, free
from any defenses enforceable against any prior holder and free from all
equities and claims of ownership of any such prior holder.
Section 106. The Bonds, the interest coupons to be attached to the
Bonds, and the certificate of the Comptroller of Public Accounts of the State
of Texas, and the certificate of the City Attorney to be endorsed on the
Bonds shall be in substantially the following forms, respectively, with the
proper insertions, substitutions and variations as in this ordinance 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 regis-
tered 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 exe-
cute 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 purchasers.
Section 109. In addition to the Bonds authorized by this ordinance,
the City may issue bonds (hereinafter referred to as Additional Bonds) pay-
able 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 im-
mediately 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 in-
terest on the Additional Bonds shall be made payable semi-annually on Septem-
ber 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 ordi-
nance, 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, 1966, shall
be redeemable prior to their respective maturities, at the option of the
City, on March 1, 1966, or on March 1 of any year subsequent to 1966, 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: 1966, $25.00; 1967, $22.50; 1968, $20.00;
1969, $17.50; 1970, $15.00; 1971, $12.50; 1972, $10.00; 1973, $7.50; 1974,
$5.00; 1975, $2.50; and without premium if redeemed after 1975; and (3) at
least thirty days prior to the date upon which such redemption is to be
made, a notice of intention to make such redemption, describing the Bonds
to be redeemed, must be published at least once in a newspaper printed in
the English language and published and of general circulation in the City of
Fort Worth, in the State of Texas, and must be published at least once in a
financial journal published in the Borough of Manhattan, in the City and
State of New York. Such option may be exercised by ordinance or resolution
duly adopted by the City Council of the City.
Section 202. Nothing contained in this ordinance shall be construed
to limit or affect the right of the City to purchase, with any moneys law-
fully available for such purpose, any of the outstanding Bonds at a price
less than the redemption price hereinbefore prescribed.
Section 203. Notice having been given by publication in the manner
provided in Section 201, the Bonds called for redemption shall become due and
payable on the redemption date designated in the notice at the redemption
price determined, as provided in Section 201, and upon presentation and sur-
render thereof at the place of payment thereof, together with all appurte-
nant coupons maturing subsequent to the redemption date, such Bonds shall be
paid at the redemption price aforesaid. All interest installments represented
by coupons which shall have matured on or prior to the redemption date shall
continue to be payable to the bearers of such coupons. Interest on any
Bonds to be redeemed shall cease to accrue from and after the redemption date
specified in such notice unless the City defaults in the payment of the re-
demption price thereof.
Section 204. All Bonds redeemed prior to maturity under the provisions
of this ordinance, together with the unmatured coupons, if any, shall be can-
celled 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 Down as the "Water and Sewer System
Construction Fund" (hereinafter referred to as the Construction Fund.). All
moneys credited to the Construction Fund shall be deposited with the City's
depositary or depositaries and shall be subject to a lien and charge in
favor of the holders of the Bonds, and shall be held for the further security
of such holders until paid out as hereinafter provided.
Section 302. From the moneys credited to the Construction Fund the City
shall apply the sum of $2,750,000.00 to the payment of the cost of improv-
ing, extending and enlarging the City Water System and the sum of $750,000.00
to the payment of the cost of improving, extending and enlarging 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 in-
clude all improvements, additions and extensions which may hereafter be made
to said properties or Systems; (2) the term "Operating Expenses" shall mean
the reasonable and proper expenses of operating and maintaining the Systems,
including, without limiting the generality of the foregoing, expenditures
for salaries, labor, materials, interest, repairs and extensions necessary
to enable the Systems to render efficient service, and every proper item
of expense, but such repairs and extensions shall be limited to those which
in the judgment of the City Council are necessary to keep the Systems in
operation and to render adequate service to the City and the inhabitants
thereof, or necessary to meet some physical accident or condition which
would otherwise impair such Systems and the Revenues thereof; (3) the term
"Revenues" shall mean the gross revenue and income derived by the City from
the operation of the Systems; (4) the term "Net Revenues" shall mean the
amount by which the aggregate of the Revenues received by the City in any
year shall exceed the amount required to pay the Operating Expenses of such
year; (5) the term "Issued Bonds" shall mean the $2,000,000.00 Water and
Sewer Revenue Bonds dated March 1, 1949, issued pursuant to the ordinance
entitled "An ordinance providing for the issuance of revenue bonds of the
City of Fort Worth in the aggregate principal amount of Two Million Dollars
($2,000,000.00) to finance the improvement, extension and enlargement of
the City's Water and Sewer Systems; providing for the payment of such bonds
solely from the revenues of such Systems; pledging a portion of such revenues
to such payment; entering into certain covenants and; agreements with respect
to the operation of such Systems and the application of the revenues derived
therefrom; and repealing all ordinances in conflict herewith," adapted by
the City Council on April 20, 1949, the $2,650,000.00 Water and Sewer Reve-
nue Bonds dated September 1, 1949, issued pursuant to the ordinance entitled
"An ordinance providing for the issuance of revenue bonds of the City of
Fort Worth in the aggregate principal amount of Two Million, Six Hundred
and Fifty 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 improvement, extension and enlargement of the City's
Water and Sewer Systems; providing for the payment of such bonds solely from
the revenues of such Systems; pledging a portion of such revenues to such
payment; entering into certain covenants and agreements with respect to the
operation of such Systems and the application of the revenues derived there-
from; and repealing all ordinances in conflict herewith," adopted by the
City Council on September 14, 1949, the $6,000,000.00 Water and Sever Revenue
Bonds dated March 1, 1951, 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 Six Million Dollars ($6,000,000.00)1
in addition 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 ($182000,000.00),
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 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-
went; 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 27, 1952, the $3,100,000.00 Water and Sewer Reve-
nue 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 aggregat-
ing Fourteen Million, Nine Hundred Thousand Dollars ($14,900,000.00) of reve-
nue bonds heretofore issued and sold out of an authorized issue of Eighteen
Million Dollars ($18,000,000.00), to finance the improvement, extension and
enlargement of the City's Water and Sewer Systems; providing for the payment
of such bonds solely from the revenues of such Systems; pledging a portion
of such revenues to such payment; entering into certain covenants and agree-
ments with respect to the operation of such Systems and the application of
the revenues derived therefrom; and repealing all ordinances in conflict here-
with," adopted by the City Council on February 18, 1953, and the $3,000,000.00
Water and Sewer Revenue Bonds dated March 1, 1954, issued pursuant to the
ordinance entitled "An ordinance providing for the issuance of revenue bonds
of the City of Fort Worth in the aggregate principal amount of Three Million
Dollars ($3,000,000.00) out of an authorized issue of Fifteen Million Dollars
($15,000,000.00), in addition to Eighteen Million Dollars ($18,000,000.00)
of revenue bonds previously authorized and issued, to finance the improvement,
extension and enlargement of the City's Water and Sewer Systems; providing
for the payment of such bonds solely from the revenues of such Systems; 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 March 10, 1954; 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
shell 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 con-
tract, or otherwise against the City, irrespective of whether such parties
have notice of such lien.
Section 404. From the operating Fund the City shall first pay Operat-
ing Expenses as such expenses become due and payable.
Section 405. (1) The Special Fund known as the "Water and Sewer Debt
Service Fund" (hereinafter referred to as "Debt Service Fund") established
by the First Issue Bond Ordinance shall be continued and maintained, and
such Special Fund shall -be divided into a "Current Account" and a "Reserve
Account" as provided in the First Issue Bond Ordinance. All moneys paid
into such accounts as hereinafter provided and as provided in the First
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 ending
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 Operat-
ing 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,
received as accrued interest from the purchasers
of the Bonds and deposited to the credit of the
Current Account and available for the purpose of
paying said interest; and
(2) An amount equal to one-twelfth (1/12) of the prin-
cipal of the Bonds (including Issued Bonds and
Additional Bonds) then outstanding that will mature
on the March first next ensuing; and
(b) Into the Reserve Account of the Debt Service Fund:
An amount equal to twenty per cent (20%) of said
payments into the Current Account; provided, how-
ever, that whenever and for so long as the amount
in the Reserve Account shall be as much as the ag-
gregate amount of principal and interest that will
become due and payable in the twelve months' period
beginning on the March 2 next ensuing on the Bonds
(including Issued Bonds and Additional Bonds) then
outstanding, no payment need be made into the Re-
serve Account; and provided, further, that no greater
payment need be made into the Reserve Account than
shall be necessary 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 foregoing
provisions of this section to be paid into the Current Account of the Debt
Service Fund on or before the last day of the month in which any Bonds or
Additional Bonds are delivered, the City shall pay into said account, on or
before said day, out of moneys remaining in the Operating Fund after the pay-
ment of Operating Expenses then due and payable, an amount equal to the
amounts, if any, which would have been theretofore paid, pursuant to said
foregoing provisions, into the Current Account with respect to said Bonds
or Additional Bonds (a) on account of interest, if said Bonds or Additional
Bonds had been delivered six months before the interest payment date next
ensuing, and (b) on account of principal, if said Bonds or Additional Bonds
had been delivered one year before the principal payment date next ensuing.
(4) If for any reason the moneys in the Current Account
or the Reserve Account of the Debt Service Fund, and actually available
for the purpose of paying the principal of or interest on the Bonds or
the Issued Bonds or the Additional Bonds, shall at any time be less than
the total amount required by the foregoing provisions of this section to be
paid into such account up to such time, after deducting, in the case of the
Current Account, moneys previously applied to, or set aside and held by the
City for, the payment of matured Bonds or Issued Bonds or Additional Bonds
and matured coupons appurtenant to Bonds or the Issued Bonds or Additional
Bonds, the amount of the deficiency shall be added to the amount otherwise
required to be paid from the Operating Fund into such deficient account in
each month thereafter until all such deficiencies shall have been made up.
(5) Whenever and for so long as the moneys in the Debt
Service Fund are at least equal to the aggregate principal amount of the
Bonds and Issued Bonds and Additional Bonds issued and unpaid, plus the
amount of interest then due and thereafter to become due on`the Bonds and
Issued Bonds and Additional Bonds issued and unpaid, no further payment need
be made into the Debt Service Fund.
Section 406. The special account in the Operating Fund known as the
"Operation Reserve Account" created by the First Issue Bond Ordinance shall
be continued and maintained. The City Council has ascertained and hereby
determines that cash and investments amounting in the aggregate to $446,415.44
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, 1954.
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
Operating Expenses required by Section 404 and the payments into the Current
Account and Reserve Account of the Debt Service Fund required by Section 405,
set aside and pay into the Operating Reserve Account, out of any balance of
the revenues remaining in the Operating Fund, the sum of $ Q,00 ,
or such larger sum as may hereafter be prescribed by the City Council, un-
til the moneys held in the Operating Reserve Account shall be equal to
twenty-five percentum of the total amount of the Operating Expenses of the
Systems for the twelve months' period ending on the next preceding September
30th, after which no further payment need be made into such account unless
the moneys therein shall become less than such total amount, in which event
such further payments shall be made from time to time into said account as
may be necessary in order to make the moneys therein equal to said total
amount. Moneys in said account may be used by the City for the purpose of
making any payments required by either Section 404 or Section 405 of this
ordinance. Any surplus remaining in the Operating Fund, after making the
payments for Operating Expenses required by Section 404 and the payments in-
to the Current Account and Reserve Account of the Debt Service Fund required
by Section 405 and the payments into the Operation Reserve Account required
by this section, may be used by the City for any lawful purpose.
Section 407. Moneys in the Current Account of the Debt Service Fund
shall be used by the City for the purpose of paying or making provision
for paying the principal of and interest on the Bonds or Issued Bonds or
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 shall
be deemed at all times to be a part of such account, and the interest ac-
cruing 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 appertaining,
and that it will faithfully do and perform and at all times fully observe
any and all covenants, undertakings, stipulations and provisions contained
herein or in the Bonds at any time outstanding hereunder. Except as in
this ordinance otherwise provided, such principal and interest are payable
solely from the Revenues derived from the Systems, which 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 ordi-
nance shall be construed as pledging the credit of the City or as obligating
the City, directly or indirectly, or contingently, to levy a tax therefor.
Section 502. The City covenants that it will at all times maintain
the Systems in good working order and condition and will continuously operate
the same, and will, from time to time, make all proper repairs, renewals and
replacements.
Section 503. The City covenants that it will at all times fix, estab-
lish and collect adequate rates and charges for the services furnished by
the Systems, so that the Revenues derived therefrom will at all times be
sufficient to provide funds for paying Operating Expenses as they become
due and payable and for taking the payments required by Section 405 to be
made to the Debt Service Fund and the payments required by Section 406 to
be made to the Operation Reserve Account, and to pay any other indebtedness
which may become a charge upon the Revenues of the Systems.
Section 504. The City covenants that it will at all times carry in-
surance in a responsible insurance company or companies authorized and quali-
fied under the laws of Texas to assume the risk thereof, covering such prop-
erties belonging to the Systems as are customarily insured, and against loss
or damage from such causes as are customarily insured against, by companies
engaged in the operation of water or sewer systems. The proceeds of any
and all such insurance shall, to the extent necessary, be applied to the
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 express-
ly 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 resolution of its City
Council determine that such articles are no longer needed or are no longer
useful A connection with the construction or operation and maintenance of
the Systems, and the proceeds thereof shall be applied to the replacement
of the properties so sold or disposed of, or shall be deposited to the credit
of the Operating Fund. The City may from time to time sell or lease such
other property forming part of the Systems as it may determine is not needed
or serves no useful purpose in connection with the maintenance and operation
of the Systems. The proceeds of any such sale shall be deposited to the
credit of the Debt Service Fund, and the rentals from any such lease shall
be deposited to the credit of the Operating Fund.
Section 506. So 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 furnished
by the Systems shall be equal and uniform, and no free service shall be al-
lowed except for City public schools or buildings and institutions operated
by the City.
Section 50B. 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 limita-
tions prescribed by Section 109 of this ordinance.
Section 509. Nothing contained in this ordinance shall be construed
to require the City to make any payment except from the Revenues of the
Systems or from the moneys raised by the issuance of the Bonds.
Section 510. The City covenants that it will keep proper books of
account (separate from all other records and accounts) in which full and
correct entries shall be made of all transactions relating to the Systems.
Such books shall be open to the inspection of all interested persons. The
City further covenants that not later than three months after the close of
each fiscal year, the City will cause to be prepared a statement, certified
by a competent and independent certified public accountant, showing in rea-
sonable detail the revenues and expenses of the Systems during such fiscal
year, the assets and liabilities of the Systems at the beginning and close
of such fiscal year, the amounts on deposit at the close of such fiscal
year in each of the separate funds or accounts mentioned in this ordinance,
and such other information as may be necessary to enable the holders of
the Bonds and the Additional Bonds to be fully informed as to all matters
pertaining to the financial operation and condition of the Systems during
such fiscal year. The City further covenants that it will cause a copy of
such statement to be mailed to each of the original purchasers of the Bonds
or the Additional Bonds and also to each holder of any of the Bonds or the
Additional Bonds who shall have requested it.
Section 511. The City covenants that, so long as the Bonds or any of
them shall be outstanding, all deposits of money held in either the Con-
struction Fund or the Debt Service Fund or the Operating Fund (other than
money invested as hereinbefore provided) shall be adequately secured by
United States Government bonds or other marketable securities eligible as
security for the deposit of trust 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.
a
ARTICLE VI.
MISCELLANEOUS PROVISIONS
Section E01. 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 constitute
a contract between the City and the holders from time to time of such Bonds;
and the covenants and agreements herein set forth to be performed on behalf
of the City shall be for the equal benefit, protection and security of the
holders of any and all such Bonds and coupons, all of which, regardless of
the time or times of their issue or maturity, shall be of equal rank with-
out 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 person,
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
a
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 &A. 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 ordi-
nance, and this ordinance and the Bonds issued pursuant thereto shall be
construed and enforced as if such illegal or invalid provision or provisions
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:
RYEA
City Attorney of the City of
Fort Worth, Texas
(Form of Bond)
No. No.
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF FORT WORTH
WATER AND SEWER REVENUE BOND
SERIES 86
U,Ooo $1,000
The City of Fort Worth (hereinafter called the City), a municipal cor-
poration of the State of Texas, for value received, hereby promises to pay,
solely from the revenues hereinafter referred to, to the bearer on March 1,
19 , the principal sum of ONE THOUSAND DOLLARS ($1,000), and to pay,
solely from said revenues, interest on said principal sum from the date of
this Bond, at the rate of per centum
( %) per annum, semi-annually on September 1 and March 1 of each year,
until the City's obligation with respect to the payment of said principal sum
shall be discharged. So much of said interest as shall be payable at or be-
fore the date of maturity of this Bond expressed herein will be paid only
upon presentation and surrender of the annexed interest coupons as they
severally mature, and so much of said interest as shall be payable after said
date of maturity will be paid to the bearer of this Bond. Payment of the
principal of and interest on this Bond will be made at the principal office
of The Hanover Bank, in the Borough of Manhattan, City and State of New York,
in such coin or currency of the United States of America as at the time of
payment shall be legal tender for the payment of public and private debts.
This Bond is one of a duly authorized issue of coupon bonds of the City,
known as its Water and Sewer Revenue Bonds, Series 86 (hereinafter called the
Bonds), limited to the aggregate principal amount of Three Million, Five Hun-
dred Thousand Dollars ($3,500,000.00), dated March 1, 1955, maturing serially
on March 1 in various years, and numbered from 3,001 to 6,500, 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, ex-
tension and enlargement of the City's Sewer System, and the Bonds are payable
from the Net Revenues derived by the City from the operation of such Systems.
The credit of the City is not pledged to the payment of the Bonds, and the
holder hereof shall never have the right to demand payment of this obliga-
tion 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 princi-
pal amount of Three Million, Five Hundred Thousand Dollars ($3,500,000.00),
in addition to an installment of Three Million Dollars ($3,000,000.00) of
revenue bonds heretofore issued and sold out of an authorized issue of Fif-
teen Million Dollars ($15,000,000.00) and in addition to Eighteen Million
Dollars ($18,000,000.00) of revenue bonds previously authorized and issued,
to finance the improvement, extension and enlargement of the City's Water
and 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 there-
from; and repealing all ordinances in conflict herewith," adopted by the
City Council of the City on February 23 , 1955, to which ordi-
nance reference is hereby made for a more specific description of the reve-
nues 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 cou-
pons with respect to such security, and of the agreements of the City with
respect thereto, and for a statement of the conditions upon which obligations
on a parity with this Bond may be issued.
The Bonds payable subsequent to March 1, 1966, shall be redeemable prior
to their respective maturities, at the option of the City, on March 1, 1966,
or on March 1 of any year subsequent to 1966, upon the following terms and
conditions, viz.: (1) The Bonds called for redemption on any March 1 must
include all of the Bonds then outstanding or must be the outstanding Bonds
bearing the highest identifying numbers; (2) the redemption price shall be
par and accrued interest to date of redemption, plus a premium for each Bond
redeemed, of the following respective amounts in the following respective
years: 1966, $25.00; 1967, $22-50; 1968, $20.00; 1969, $17.50; 1970, $15.00;
1971, $12.50; 1972, $10.00; 1973, $7.50; 1974, $5.00; 1975, $2.50; and with-
out premium if redeemed after 1975; 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.
Rach successive holder of this Bond, and each successive holder of each
of the coupons hereto attached, is conclusively presumed to forego and re-
nounce 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, howsoever
such possession may have been acquired, and that any holder who shall have
taken this Bond or any of the coupons from any person for value and without
notice thereby has acquired absolute title thereto, free from any defenses
enforceable against any prior holder and free from all equities and claims
of ownership of any such prior holder.
This Bond is issued pursuant to the Constitution and statutes of the
State of Texas, including particularly Articles 1111 to 1118, inclusive,
of the 1925 Revised Civil Statutes of Texas, as amended, Chapter 249, Acts
51st Legislature (1949); and Chapter 250, Acts 51st Legislature (1949), as
amended by Chapter 23, Acts 52ad Legislature (1951), and pursuant to propo-
sitions authorizing the encumbering of the income derived by the City from
the operation of the City's Water System and the City's Sewer System to pro-
vide for the payment of the $15,000,000.00 principal amount of bonds (of
which the $3,500,000.00 principal amount of Series 86 Bonds above described
are a part), adopted by a majority of the resident, qualified electors of
the City owning taxable property in the City, and who had duly rendered the
same for taxation, voting at an election held for that purpose on January 26,
1954, and pursuant to the above mentioned ordinance. All acts, conditions
and things required by the Constitution or statutes of the State of Texas to
exist, be performed or happen precedent to or in the issuance of this Bond
exist, have been performed and have happened; and the amount of this Bond,
together with all other indebtedness of the City, does not exceed any limit
prescribed by the Constitution or statutes of said State.
IN WITNESS WHEREOF, the City has caused this Bond to be signed by its
Mayor and attested by its City Secretary, and has caused the seal of the
City to be hereunto affixed or impressed hereon, and coupons for the interest
payable prior to or at the maturity of this Bond, bearing the facsimile sig-
natures of said Mayor and City Secretary, to be attached hereto, all as of
the first day of March, 1955-
CITY OF FORT WORTH, TEXAS
BY
— TPlAyor
ATTEST:
City Secretary
(Form of coupons representing interest payable
on or before March 1, 1966)
The City of Fort Worth, Texas, will pay to bearer,
solely from those certain revenues referred to in the Bond
On the
hereinafter mentioned, at the principal office of The Hanover first day of
Bank, in the City of New York, New York, the sum of Sept., 19
March,
Dollars ($ ), being
NO. - $
interest then due on its Water and Sewer Revenue Bond,
SERIES 86
Series 86, dated March 1, 1955. 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.
r
ATTEST:
City Secretary
(Form of coupons representing interest payable
subsequent to March 1, 1966)
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 in
Sept., 19
the Bond hereinafter mentioned, at the principal office of March,
The Hanover Bank, in the City of New York, New York, the sum NO. - $
of Dollars ($ ), being SERIES 86
interest then due on its Water and Sewer Revenue Bond, BOND NO.
Series 86, dated March 1, 1955• 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.
r
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 authorizing
same, and said bond has this day been registered by me.
WITNESS my hand and seal of office at Austin, Texas, this the
day of , A. D. 19
Comptroller of Public Accounts
of the State of Texas
(Form of City Attorney's Certificate)
The within bond is hereby approved as to form and legality.
City Attorney
a
(1) "City Water System" and 'City Sever System" mean the
systems described in the first paragraph of this ordi-
nance.
(2) "Bonds" shall mean the bonds described in Section 101
of this ordinance.
(3) "Additional Bonds" shall mean the bonds hereafter is-
sued 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, respectively,
Revenues and Net Revenues as defined in Section 401 of
this ordinance.
(7) "First Issue Bond Ordinance" shall mean the ordinance
hereinbefore described, adopted by the City Council
on April 20, 1949.
(8) "Operating Fund" shall mean the fund described in Sec-
tion 402 of this ordinance.
(9) "Debt Service Fund" and "Current Account" and "Reserve
Account" shall mean the Debt Service Fund, the Current
Account and the Reserve Account described in Section 405
of this ordinance.
(10) "Operation Reserve Account" shall mean the Operation
Reserve Account described in Section 406 of this ordi-
nance.
(11) "Issuance Date" shall mean the first day on which any
of the Bonds are delivered.
(12) "Year" or "Fiscal Year" shall mean the yearly period be-
ginning October 1 in each year.
NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS:
ORDINANCE
No
Title `i
f l
r�
Adopted(--`/
Filed ` ' — Day of
19
. C
} 3
City Seetary
P.O.No.9713-T