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HomeMy WebLinkAboutOrdinance 5732 ORDINANCE NO. AN ORDINANCE PROVIDING FOR THE ISSUANCE OF REVENUE BONDS OF THE CITY OF FORT WORTH IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION DOLLARS ($1,000,- 000.00) TO FINANCE THE IMPROVEMENT AND EXTENSION OF THE CITY`S WATER SYSTEM; PROVIDING FOR THE PAYMENT OF SUCH BONDS SOLELY FROM THE REVENUES OF THE CITY'S WATER AND SEWER SYSTEMS; PLEDGING A PORTION OF SUCH REVENUES TO SUCH PAYMENT; ENTER- ING INTO CERTAIN COVENANTS AND AGREEMENTS WITH RESPECT TO THE OPERATION OF SUCH SYSTEMS AND THE APPLICATION OF THE REVENUES DERIVED THEREFROM; AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH. WHEREAS, the City of Fort Worth (hereinafter referred to as City) has established, and for many years has maintained and operated, and is now maintaining and operating a system (hereinafter referred to as the City Water System) used or useful to obtain a supply of water for said City and its in- habitants and to conserve, treat and dispose of such water, and also a system (hereinafter referred to as the City Sewer System) used or useful for the collection, treatment and dis- posal of sewage and waste; and, WHEREAS, at elections duly called and held in the City on January 25, 1949, January 26, 1954, and January 31, 1956, a majority of the qualified voters of the City voted in favor of propositions authorizing the issuance of Water and Sewer Revenue Bonds in the aggregate principal amount of Fifty-one Million Dollars ($51,000,000.00) ; and, WHEREAS, the City has heretofore issued all of the bonds authorized by propositions submitted at said elections, said bonds having been issued pursuant to ordinances duly passed by the City Council of said City, the first of said ordinances passed on April 20, 1949, being hereinafter referred to as the "First Issue Bond Ordinance"; and, WHEREAS, at an election duly called and held in the City on October 19, 1965, a majority of the qualified voters of the City voted in favor of the proposition authorizing the issuance of Water and Sewer Revenue Bonds in the prin- cipal sum of Twenty-three Million, Nine Hundred and Fifty Thousand Dollars ($23,950,000.00) , in addition to the bonds in the aggregate principal amount of Fifty-one Million Dol- lars ($51,000,000.00) heretofore authorized and issued; and, WHEREAS, it was provided in Section 109 of the First Issue Bond Ordinance passed April 20, 1949, that the City of Fort Worth might issue additional bonds payable from the Debt Service Fund created by said ordinance, which bonds, when issued, would be secured equally and ratably with the bonds authorized by said ordinance of 1949; and, WHEREAS, the conditions prescribed in Section 109 of said ordinance of 1949 have been fulfilled and exist so that the City now has authority under said section to issue the additional bonds herein authorized; and, WHEREAS, it is deemed wise and expedient by the City Council of said City, in the exercise of the discretion re- posed in it by law, that One Million Dollars ($1,000,000.00) of Water and Sewer Revenue Bonds out of Twenty-three Million, Nine Hundred and Fifty Thousand Dollars ($23,950,000.00) authorized at said election held on October 19, 1965, be is- sued, in addition to the bonds heretofore issued and sold, for the purpose of making permanent city improvements by im- proving and extending the Waterworks System of said City, and that said bonds shall be issued as provided by this ordinance; and, WHEREAS, the following terms, where used in this or- dinance, unless the context shall indicate another or dif- ferent meaning or intention, are to be construed and used and are intended to have meanings as follows: (1) "City Water System" and "City Sewer System" mean the systems described in the first paragraph of this ordinance. (2) "Bonds" shall mean the bonds described in Section 101 of this ordinance. (3) "Additional Bonds" shall mean the bonds hereafter issued as provided in Section 109 of this ordinance. (4) "Issued Bonds" shall mean the Issued Bonds described in Section 401 of this ordinance. (5) "Operating Expenses" shall mean Operating Expenses as defined in Section 401 of this or- dinance. (6) "Revenues" and "Net Revenues" shall mean, respectively, Revenues and Net Revenues as de- fined 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 de- scribed in Section 402 of this ordinance. (9) "Debt Service Fund" and "Current Account" and "Reserve Account" shall mean the Debt Service Fund, the Current Account and the Reserve Account described in Section 405 of this ordinance. (10) "Operation Reserve Account" shall mean the Operation Reserve Account described in Section 406 of this ordinance. (11) "Issuance Date" shall mean the first day on which any of the Bonds are delivered. (12) "Year" or "Fiscal Year" shall mean the yearly period beginning October 1 in each year. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: ARTICLE I. AUTHORIZATION AND DESCRIPTION OF BONDS Section 101. Bonds of the City shall be issued in the aggregate principal amount of One Million Dollars ($1,000,000.00) for the purpose of making permanent city improvements by improving and extending the Waterworks Sys- tem of said City. 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 109. The Bonds shall be payable solely from the Net Revenues of the City's Water and Sewer Systems, as defined in Section 401 of this ordinance. The holder or holders of the Bonds shall never have the right to demand payment thereof out of any funds raised or to be raised by taxation. Section 102. The Bonds are hereby authorized and shall be issued pursuant to the Constitution and Statutes of the State of Texas, including particularly Articles 1111 to 1118, inclusive, of the 1925 Revised Civil Statutes of Texas, as amended. Section 103. The Bonds shall be two hundred (200) in number, numbered from one (1) to two hundred (200) , both inclusive, and of the denomination► of Five Thousand Dollars ($5,000.00) each, shall be dated March 1, 1967, and shall mature serially on March 1st of each year, as follows: YEAR AMOUNT 1968 $40,000.00 1969 40,000.00 1970 40,000.00 1971 40,000.00 1972 40,000.00 1973 40,000.00 1974 40,000.00 1975 40,000.00 1976 40,000.00 1977 40,000.00 1978 40,000.00 1979 40,000.00 1980 40,000.00 1981 40,000.00 1982 40,000.00 1983 40,000.00 1984 40,000.00 1985 40,000.00 1986 40,000.00 1987 40,000.00 1988 40,000.00 1989 40,000.00 1990 40,000.00 1991 40,000.00 1992 40,000.00 The Bonds shall be payable, with respect to both principal and interest, at the principal office of the Manufacturers Hanover Trust Company, 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. Section 104. The Bonds shall bear interest from March 1, 1967, at the rates as follows: Bonds maturing 1968 to 1973, both incl., 4-1/2% per annum; Bonds maturing 1974 to 1978, both incl. , 3-1/41/ per annum; Bonds maturing 1979 to 1982, both incl. , 3.40 % per annum; Bonds maturing 1983 to 1986, both incl. , 3-1/2% per annum; and Bonds maturing 1987 to 1992, both incl. , 3.60 % per annum, payable September 1, 1967, and semi-annually thereafter on March 1st and September 1st of each year until the principal amount thereof shall be paid. Section 105. The Bonds shall be payable to bearer, without privilege of registration. Each of the Bonds shall be signed by the facsimile signature of the Mayor, approved as to form and legality by the facsimile signature of the City Attorney and attested manually by the City Secretary, and the corporate seal of the City of Fort Worth, Texas, shall be affixed to, printed, lithographed or 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. Each successive holder of each Bond, and each successive holder of each of the coupons attached to the Bonds, is conclusively presumed to forego and renounce his equities in favor of subsequent holders for value with- out notice, and to agree that such Bond and each of such coupons may be negotiated by delivery by any person having possession thereof, howsoever such possession may have been acquired, and that any holder who shall have taken such Bond or any of such coupons from any person for value and without notice thereby has acquired absolute title thereto, free from any defenses enforceable against any prior holder and free from all equities and claims of ownership of any such prior holder. Section 106. The Bonds, the interest coupons to be attached to the Bonds, and the certificate of the Comptroller of Public Accounts of the State of Texas, and the certifi- cate 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. The Bonds herein authorized shall be presented to the Attorney General of the State of Texas for examination and approval and to the Comptroller of Public Accounts for registration. 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 the Comptroller shall be impressed, or printed, or lithographed on each of said Bonds. Section 108. The Mayor and City Secretary are hereby authorized to execute said Bonds and to affix, impress, print or lithograph 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 re- ferred to as Additional Bonds) payable from the Debt Service Fund hereinafter referred to and secured, equally and ratably with the Bonds authorized by this ordinance, by a pledge of the Revenues of the Systems, but only upon the following conditions: (a) That the Additional Bonds shall be issued for the purpose of improving or extending the Systems; (b) That at the time the Additional Bonds are is- sued, the City shall not be in default in making any pay- ment required by Section 404, 405 or 406 of this ordinance; (c) That the amount of the average annual Net Revenues of the Systems computed by dividing by two the Net Revenues for the two fiscal years immediately preceding the time of issuance of the Additional Bonds shall be not less than 150% of the maximum aggregate amount of principal and interest payable in any future fiscal year with respect to the Bonds and Additional Bonds then outstanding (in- cluding Issued Bonds as hereinafter defined) and the Ad- ditional Bonds about to be issued; and (d) That the principal of the Additional Bonds shall be made payable on March 1 of the years in which such principal is payable, and that the interest on the Addi- tional 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 proposition referred to in the preamble of this ordinance, as well as all of those issued pursuant to propositions heretofore or here- after 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 vir- tue 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 representing 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, 1982, shall be redeemable prior to their respective maturities, at the option of the City, on March 1, 1982, or on March 1 of any year subsequent to 1982, 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: 1982, $125.00; 1983, $112.50; 1984, $100.00; 1985, $87.50; 1986, $75.00; 1987, $62.50; 1988, $50.00; 1989, $37 .507 1990, $25.00; and 1991, $12.50; 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 exer- cised by ordinance or resolution duly adopted by the City Coun- cil 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 lawfully 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 publica- tion in the manner provided in Section 201, the Bonds called for redemption shall become due and payable on the redemp- tion date designated in the notice at the redemption price determined, as provided in Section 201, and upon presenta- tion and surrender thereof at the place of payment there- of, together with all appurtenant coupons maturing subse- quent 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 re- deemed shall cease to accrue from and after the redemption date specified in such notice unless the City defaults in the payment of the redemption price thereof. ARTICLE III. APPLICATION OF PROCEEDS OF BONDS Section 301. All moneys received by the City in pay- ment for the Bonds, exclusive of accrued interest, shall be credited to a special fund, which is hereby created and which shall be known as the "Water and Sewer System Con- struction Fund" (hereinafter referred to as the Construc- tion Fund) . All moneys credited to the Construction Fund shall be deposited with the City's depositary or deposi- taries 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 herein- after provided. Section 302. From the moneys credited to the Con- struction Fund the City shall apply the sum of $1,000,000.00 to the payment of the cost of improving and extending the City Water 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 use- ful in the operation of the City Water System or the City Sewer System, including real estate, personal and intangible properties, whether lying within or without the boundaries of the City, and shall include all improvements, additions and extensions which may hereafter be made to said proper- ties 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 inhabit- ants 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 re- quired to pay the Operating Expenses of such year; (5) the term "Issued Bonds" shall mean the Fifty-one Million Dollars ($51,000,000.00) Water and Sewer Revenue Bonds which have been heretofore issued pursuant to the au- thority given by the propositions adopted at said elections held in the City on January 25, 1949, January 26, 1954, and January 31, 1956, and pursuant to the ordinances re- ferred to in the preamble of this ordinance; 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 ordinance) received or collected by the City or any of its officers or agencies shall be deposited by the City Treasurer, as promptly as possible after their receipt, in a bank or banks authorized to act as depositary or de- positaries 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" (hereinafter 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 ordi- nance 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 redemption 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 re- ferred to as the Issuance Date) upon which any bonds are issued pursuant to this ordinance. Revenues, as received by the City, shall immediately be subject to the lien of this pledge without any physical delivery thereof or further act, and the lien of this pledge shall be valid and bind- ing as against all parties having claims of any kind in tort, or contract, or otherwise against the City, irrespec- tive of whether such parties have notice of such lien. Section 404. From the Operating Fund the City shall first pay Operating Expenses as such expenses become due and payable. Section 405. (1) The Special Fund known as the "Water and Sewer Debt Service Fund" (hereinafter referred to as "Debt Service Fund") established by the First Issue Bond Ordinance shall be continued and maintained, and such Special Fund shall be divided into a "Current Account" and a "Reserve Account" as provided in the First Issue Bond Ordinance. All moneys paid into such accounts as herein- after 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 Operating Fund after payment of Operating Expenses then due and payable, pay (a) Into the Current Account of the Debt Service Fund: (1) An amount equal to one-sixth (1/6) of the interest payable on the Bonds (including Issued Bonds and Additional Bonds) then outstanding on the inter- est payment date next ensuing, less the amount, if any, received as ac- crued interest from the purchasers of the Bonds and deposited to the credit of the Current Account and available for the purpose of paying said inter- est; and (2) An amount equal to one-twelfth (1/12) of the principal of the Bonds (includ- ing 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 Cur- rent Account; provided, however, that whenever and for so long as the amount in the Reserve Account shall be as much as the aggregate amount of principal and interest that will become due and payable in the twelve months' period beginning on the March 2 next ensuing on the Bonds (including Issued Bonds and Additional Bonds) then outstanding, no payment need be made into the Reserve Account; and provided, further, that no greater payment need be made into the Reserve Account than shall be necessary to make the amount in the Reserve Account equal to said aggregate amount of prin- cipal and interest. (3) In addition to the amount required by the foregoing provisions of this section to be paid into the Current Account of the Debt Service Fund on or before the last day of the month in which any Bonds or Additional Bonds are delivered, the City shall pay into said account, on or before said day, out of moneys remain- ing in the Operating Fund after the payment of Operating Expenses then due and payable, an amount equal to the amounts, if any, which would have been theretofore paid, pursuant to said foregoing provisions, into the Current Account with respect to said Bonds or Additional Bonds (a) on account of interest, if said Bonds or Additional Bonds had been delivered six months before the interest pay- ment 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 pay- ing the principal of or interest on the Bonds or the Is- sued Bonds or the Additional Bonds, shall at any time be less than the total amount required by the foregoing pro- visions of this section to be paid into such account up to such time, after deducting, in the case of the Current Ac- count, 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 other- wise 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 main- tained. The City Council has ascertained and hereby de- termines that cash and investments amounting in the aggre- gate to $1,034,081.00 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 System for the twelve months' period ending on September 30, 1966. 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 re- quired by Section 405, set aside and pay into the Operating Reserve Account, out of any balance of the Revenues re- maining in the Operating Fund, the sum of $16,000.00, or such larger sum as may hereafter be prescribed by the City Council, until the moneys held in the Operating Re- serve 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 be- come 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 pay- ments 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 into the Current Account and Reserve Account of the Debt Service Fund required by Section 405 and the payments into the Operation Reserve Ac- count 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 Account shall be insufficient for said purpose. All moneys in the Debt Service Fund shall be held by the City in trust, and they are hereby pledged to and charged with the payments men- tioned 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 discre- tion of the City Council of the City, be invested in direct obligations of, or obligations the principal and interest of which are unconditionally guaranteed by, the United States Government. Obligations so purchased as an investment of moneys in either of such accounts shall be deemed at all times to be a part of such account, and the interest accruing thereon and any profit realized from such investment shall be credited to such account, and any loss resulting from such investment shall be charged to such account. The City shall sell at the best price obtainable any 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 herein- above particularly specified, and nothing in the Bonds or coupons or in this ordinance shall be construed as pledg- ing 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 order and condition and will continuously operate the same, and will, from time to time, make all proper repairs, renewals and replace- ments. Section 503. The City covenants that it will at all times fix, establish 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 making the payments re- quired 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 indebted- ness which may become a charge upon the revenues of the Systems. Section 504. The City covenants that it will at all times carry insurance in a responsible insurance com- pany or companies authorized and qualified under the laws of Texas to assume the risk thereof, covering such proper- ties belonging to the Systems as are customarily insured, and against loss or damage from such causes as are cus- tomarily 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 prop- erty. Section 505. The City covenants that, so long as the Bonds or any of them shall be outstanding and except as in this ordinance otherwise expressly permitted, it will not sell, lease or otherwise dispose of or encumber the Systems or any part thereof, and will not create or permit to be created any charge or lien on the Revenues of the Systems ranking equally with or prior to the charge or lien on such Revenues of the Bonds issued under and secured by this ordinance. The City may, however, from time to time, sell any machinery, fixtures, apparatus, tools, instru- ments or other movable property acquired by it in con- nection with the Systems, or any materials used in con- nection therewith, if the City shall by resolution of its City Council determine that such articles are no longer needed or are no longer useful in connection with the con- struction 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 de- posited to the credit of the Operating Fund. The City may from time to time sell or lease such other property form- ing part of the Systems as it may determine is not needed or serves no useful purpose in connection with the mainte- nance 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 lonq 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 sys- tem. 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 allowed except for City public schools or buildings and institu- tions operated by the City. Section 508. The City covenants and agrees that, so long as the Bonds or any of them are outstanding, it will not issue Additional Bonds, payable from the Debt Service Fund, except in the manner and subject to the limi- tations prescribed by Section 109 of this ordinance. Section 509. Nothing contained in this ordinance shall be construed to require the City to make any pay- ment 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 accountsy 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 compe- tent and independent certified public accountant, showing in reasonable detail the revenues and expenses of the Sys- tems 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 Addi- tional Bonds to be fully informed as to all matters per- taining 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 Construction Fund or the Debt Service Fund or the Operating Fund (other than money in- vested as hereinbefore provided) shall be adequately se- cured 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 Govern- ment deposits, or as may be required by the applicable laws of the State of Texas. ARTICLE VI. MISCELLANEOUS PROVISIONS Section 601. If a coupon appertaining to any of the Bonds shall in any way, before, at or after maturity, be transferred or pledged separate and apart from the Bond to which it appertains, such coupon shall not, unless ac- companied by such Bond, be entitled, in case of default hereunder, to any benefit of or from this ordinance, except after prior payment in full of the principal of all Bonds and of all coupons not so transferred or pledged. If the time for the payment of any coupon appertaining to any of the Bonds shall be directly or indirectly extended, or the extension thereof shall be assented to by the City, or the City shall be a party to or approve of any arrangement for such extension by purchasing such coupons or in any other manner, then, anything in this ordinance contained to the contrary notwithstanding, such coupon so extended shall not be entitled, in case of default hereunder, to any benefit of or from this ordinance, 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 Ik the equal benefit, protection and security of the holders of any and all such Bonds and coupons, all of which, re- gardless of the time or times of their issue or maturity, shall be of equal rank without preference, priority or dis- tinction 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 or- dinance, or any covenant, condition or stipulation herein, this ordinance and all of its covenants, conditions and stipulations being intended to be for the sole and ex- clusive benefit of the holders from time to time of the Bonds. Section 604. In the event that any one or more of the provisions of this ordinance shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this ordinance, and this ordinance and the Bonds issued pursuant thereto shall be construed and enforced as if such illegal or in- valid provision or provisions had not been contained in this ordinance. Section 605. All ordinances and resolutions in con- flict herewith are hereby repealed in so far as they con- flict 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 �A'S�TOz ORM AND LEGALITY: �,� ` J y�/G� ' 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 109 $5,000 $5,000 The City of Fort Worth (hereinafter called the City) , a municipal corporation of the State of Texas, for value received, hereby promises to pay, solely from the revenues hereinafter referred to, to the bearer on March 1, 19 the principal sum of FIVE THOUSAND DOLLARS ($5,000) , 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, seam-annually, the first in- terest payment date being September 1, 1967, and each year thereafter on March 1 and September 1, until the City's obligation with respect to the payment of said principal sum shall be discharged. Interest payable at or before the date of maturity of this Bond will be paid only upon presen- tation and surrender of the annexed interest coupons as they severally mature. Payment of the principal of and interest on this Bond will be made at the principal office of the Manufacturers Hanover Trust Company 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 bonds of the City, known as its Water and Sewer Revenue Bonds, Series 109 (hereinafter called the Bonds) , in the aggre- gate principal amount of one Million Dollars ($1,000,000.00) , dated March 1, 1967, in the denomination of Five Thousand Dollars ($5,000.00) each, and numbered from one (1) to two hundred (200) . The Bonds are issued for the improvement and extension of the City's Water System and are payable from the Net Revenues derived by the City from the operation of the City's Water and Sewer Systems. 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 pursuant to an ordinance passed by the City Council of the City on February 14, 1967, to which ordinance reference is hereby made for a more specific de- scription of the revenues charged with and pledged to the payment of the principal of and interest on the Bonds, and for a statement of the nature and extent of such security, of the rights of the bearers of the Bonds and of the an- nexed interest coupons with respect to such security, and of the agreements of the City with respect thereto, and for a statement of the conditions upon which obligations on a parity with this Bond may be issued. The Bonds of this issue, together with the revenue bonds previously issued, are se- cured equally and ratably by a pledge of the net revenues of such Systems. The Bonds payable subsequent to March 1, 1982, shall be redeemable prior to their respective maturities, at the option of the City, on March 1, 1982, or on March 1 of any year subsequent to 1982, upon the following terms and conditions, viz. : (1) The Bonds called for redemption on any March 1 must include all of the Bonds then out- standing or must be the outstanding bonds bearing the high- est identifying numbers; (2) the redemption price shall be par and accrued interest to date of redemption, plus a premium for each Bond redeemed, of the following respective amounts in the following respective years: 1982, $125.00; 1983, $112.50; 1984, $100.00; 1985, $87.50; 1986, $75.00; 1987, $62.50; 1988, $50.00; 1989, $37.50; 1990, $25.00; and 1991, $12.50; 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 gen- eral circulation in the City of Fort Worth, in the State of Texas, and must be published at least once in a financial journal published in the Borough of Manhattan, in the City and State of New York. Each successive holder of this Bond, and each succes- sive holder of each of the coupons hereto attached, is con- clusively presumed to forego and renounce his equities in favor of subsequent holders for value without notice, and to agree that this Bond and each of the coupons hereto at- tached 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 to any such prior holder. This Bond is issued pursuant to the Constitution and statutes of the State of Texas, including particularly Articles 1111 to 1118, inclusive, of the 1925 Revised Civil Statutes of Texas, as amended, and Chapter 250, Acts 51st Legislature (1949) , as amended, and pursuant to a proposi- tion 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 October 19, 1965, and pursuant to the above mentioned ordinance. All acts, con- ditions 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 stat- utes of said State. IN WITNESS WHEREOF, this Bond has been signed by the imprinted or lithographed facsimile signature of the Mayor of said City, countersigned by the manual signature of the City Secretary, and approved as to form and legality by the imprinted or lithographed facsimile signature of the City Attorney, and the interest coupons attached hereto have been signed by the imprinted or lithographed facsimile sig- natures of the Mayor and City Secretary, and the official seal of said City has been duly affixed to, printed, litho- graphed or impressed on this Bond, which Bond is dated March 1, 1967. CITY OF FORT WORTH, TEXAS BY Mayor ATTEST: City Secretary APPROVED AS TO FORM AND LEGALITY: City Attor_ne-y (Form of coupons representing interest payable on or before March 1, 1982) The City of Fort Worth, Texas, will pay to bearer, solely from those certain revenues re- ferred to in the Bond hereinafter mentioned, at On the first day of the principal office of the Manufacturers Hanover Sept. , 19_ Trust Company, in the City of New York, New York, March, the sum of Dollars NO. - $ ($ ) , being interest then due on its Water SERIES 109 and Sewer Revenue Bond, Series 109, dated March 1, BOND NO. 1967. The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. Mayor ATTEST: City Secretary (Form of coupons representing interest payable subsequent to March 1, 1982) 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 to bearer, On the solely from those certain revenues referred to first day of in the Bond hereinafter mentioned, at the prin- Sept. , 19 _ March, cipal office of the Manufacturers Hanover Trust NO. - $ Company, in the City of New York, New York, SERIES 109 the sum of Dollars BOND NO. ($ ) , being interest then due on its Water and Sewer Revenue Bond, Series 109, dated March 1, 1967. The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. Mayor ATTEST: City Secretary (Form of Comptroller's Certificate) OFFICE OF COMPTROLLER § STATE OF TEXAS § I HEREBY CERTIFY that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that this bond has been ex- amined 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 ORDINANCE No. 7c�3 Q Title T Adopted -�2 Final Adoption Published Filed nay of lg City Secretary