HomeMy WebLinkAboutOrdinance 6438 ORDINANCE NO. �'
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF REVE-
NUE BONDS OF THE CITY OF FORT WORTH IN THE AG-
GREGATE PRINCIPAL AMOUNT OF SEVEN MILLION, SIX
HUNDRED THOUSAND DOLLARS ($7,600,000.00) 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 POR-
TION 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.
WHEREAS, the City of Fort Worth (hereinafter referred
to as City) has established, and for many years has main-
twined and operated, and is now maintaining and operating a
system (hereinafter referred to as the City Water System)
used or useful to obtain a supply of water for said City and
its inhabitants and to conserve, treat and dispose of such
water, and also a system (hereinafter referred to as the City
Sewer System) used or useful for the collection, treatment
and disposal of sewage and waste; and,
WHEREAS, at elections duly called and held in the City
on January 25, 1949, January 26, 1954, January 31,, 1956, and
October 19,, 1965, a majority of the qualified voters of the
City voted in favor of propositions authorizing the issuance
of Water and Sewer Revenue Bonds;. and,
WHEREAS, the City has heretofore issued all of the bonds
authorized by propositions submitted at the elections held on
January 25, 1949, January 26, 1954, and January 31, 1956, said
bonds in the aggregate ,principal amount of Fifty-one Million
Dollars ($51,000,000.00) having been issued pursuant to ordi-
that said bonds shall be issued as provided by this ordi-
nancel and,
WHEREAS, the following terms, where used in this ordi-
nance, unless the context shall indicate another or different
meaning or intention, are to be construed and used and are
intended to have meanings as follows:
(1) "City Water System" and "City Sewer
System" mean the systems described in the
first paragraph of this ordinance.
(2) "Bonds" shall mean the bonds described
in Section 101 of this ordinance.
(3) "Additional Bonds" shall mean the bonds
hereafter issued as provided in Section 109 of
this ordinance.
(4) "Issued Bonds" shall mean the issued
Bonds described in Section 401 of this ordi-
nance.
(5) "Operating Expenses" shall mean Operating
Expenses as defined in Section 401 of this ordi-
nance.
(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 Ac-
count 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, THRREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TE)CAS:
ARTICLE I.
AUTHORIZATION AND DESCRIPTION OF BONDS
Section 101. Bonds of the City shall be issued in the
aggregate principal amount of Seven Million, Six Hundred
Thousand Dollars ($7,600,000.00) for the purpose of making
permanent city improvements by improving and extending the
Waterworks System of said City. All of such bonds (herein-
after 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, and pursuant to Acts 1969 of the 61st Legislature.
Section 103. The Bonds shall be one thousand, five hun-
ared and twenty (1,520) in number, numbered from eight hundred
and one (601) to two thousand, three hundred and twenty (2,320) ,
both inclusive, and of the denomination of Five Thousand Dol-
lars ($5,000.00) each, shall be dated March 1, 1971, and shall
mature serially on March lst of each year, as follows:
Year Amount
1972 $300,000.00
1973 300,000.00
1974 300,000.00
1975 300,000.00
1976 300,000.00
1977 305,000.00
1978 305,000,00
1979 305,000.00
1980 305,000.00
1981 305,000..00
1982 305,000.00
1983 305,000.00
1984 305,000.00
1985 305,000.00
1986 305,000.00
1987 305,000.00
1988 305,000.00
1989 305,000.00
1990 305,000.00
1991 305,000.00
1992 305,000.00
1993 305,000.00
1994 305,000.00
1995 305,000.00
1996 305,000.00
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 Bands shall bear interest from
March 1, 1971, at the rates as follows:
Bonds maturing 1972 to 1980, both incl., 6.00% per annum;
Bonds maturing 1981 5.10% per annum;
Bonds maturing 1982 4.25% per annum;
Bonds maturing 1983 4.40% per annum;
Bonds maturing 1984 4.501% per annum;
Bonds maturing 1985 4.60' per annum;
Bonds maturing 1986 4.70% per annum;
Bonds maturing 1987 4.80°1. per annum;
Bonds maturing 1988 4.90% per annum;
Bonds maturing 1989 to 1992, both incl., 5.00% per annum; and
Bonds maturing 1993 to 1996, both incl., 4.00% per annum,
payable September 1, 1971, and semi-annually thereafter on
March lst and September lst 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 Secre-
tary shall be lithographed or printed upon the coupons at-
tached 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 suc-
cessive holder of each of the coupons attached to the Bonds,
is conclusively presumed to forego and renounce his equities
in favor of subsequent holders for value without notice, and
to agree that such Bond and each of such coupons may be nego-
tiated 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 ac-
quired absolute title thereto, free from any defense enforce-
able 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. 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. -LJpon 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 litho-
graphed 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 he 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 con-
ditions:
(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 payment
required by Section 404, 405 or 406 of this ordinance;
(c) 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 immediately preceding the
time of issuance of the Additional Bonds shall be not less
than 150% of the maximum aggregate amount of principal and
interest payable in any future fiscal year with respect to
the Bonds and Additional Bonds then outstanding (including
Issued Bonds as hereinafter defined) and the Additional Bonds
about to be issued; and
(d) That the principal of the Additional Bonds
shall be made payable on March 1 of the years in which such
principal is payable, and that the interest on the Additional
Bonds shall be made payable semi-annually on September 1 and
March 1.
All Bonds issued in accordance with the provisions of
this Section 109, as well as all of those issued pursuant to
prqpositions heretofore or hereafter adopted by a majority
of the resident, qualified electors of the City 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 representing parts of the same indebtedness, with-
in 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,
1986, shall be redeemable prior to their respective maturi-
ties, at the option of the City, on March 1, 1986, or on
March 1 of any year subsequent to 1986, upon the following
terms and conditions, viz. : (1) The Bonds called for re-
demption on any March 1 must include all of the Bonds then
outstanding or must be the outstanding Bonds bearing the
highest identifying numbers; (2) the redemption price shall
be par and accrued interest to date of redemption; and (3)
at least thirty days prior to the date upon which such re-
demption is to be made, a notice of intention to make such
redemption, describing the Bonds to be redeemed, must be pub-
lisped at least once in a financial journal of national circu-
lation published in the Borough of Manhattan, in the City and
State of New York. Such option may be exercised by, ordinance
or resolution duly adopted by the City Council of the City.
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 pur-
pose, 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 de-
termined, as provided in Section 201, and upon presentation
and surrender thereof at the place of payment thereof, to-
gether with all appurtenant coupons maturing subsequent to
the redemption date, such Bonds shall be paid at the redemp-
tion price aforesaid. All interest installments represented
by coupons which shall have matured on or prior to the re-
demption 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
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 Construc-
tion Fund" (hereinafter referred to as the Construction Fund) .
All money's credited to the Construction Fund shall be deposited
with the city's depositary or depositaries and shall be sub-
ject 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 Construc-
tion Fund the City shall apply the sum of $7,600,000.00 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 useful in
the operation of the City Water System or the City Sewer Sys-
tem, including real estate, personal and intangible proper-
ties, whether lying within or without the boundaries of the
City, and shall include all improvements, additions and exten-
sions which may hereafter be made to said properties or Sys-
tems; (2) the term "Operating Expenses" shall mean the reason-
able and proper expenses of operating and maintaining the Sys-
tems, including, without limiting the generality of the fore-
going, 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 physi-
cal 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-five Million Dollars
($55,000,000.00) Water and Sewer Revenue Bonds which have
been heretofore issued pursuant to the authority given by the
propositions adopted at said elections held in the City on
January 25, 1949, January 26, 1954, January 31, 1956, and
October 19, 1965, and pursuant to the ordinances referred 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 depositaries
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 referred 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 binding as against all parties hav-
ing claims of any kind in tort, or contract, 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 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 Ordi-
nance 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 de-
posited 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 interest
payment date next ensuing, less the
amount, if any, received as accrued in-
terest from the purchasers of the Bonds
and deposited to the credit of the Cur-
rent Account and available for the pur-
pose of paying said interest; and
(2) An amount equal to one-twelfth (1/12) of
the principal 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 (201%)
of said payments into the Current Account;
provided, however, that whenever and for
so long as the amount in the Reserve Ac-
count 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 en-
suing on the Bonds (including Issued Bonds
and Additional Bonds) then outstanding, no
payment need be made into the Reserve Ac-
count; and provided, further, that no
greater payment need be made into the Re-
serve 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 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 money's 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 tbis.,,,,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 mao*
tured 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 $1,426,581.72
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, 1970. In the
event that the moneys held in said account shall hereafter be
less than twenty-five percentum of the total amount of the
Operating Expenses of the Systems for any twelve months'
period ending on the next preceding September 30th, the City
shall, on or before the last days of December, March, June and
September in each year, after making the payments for Operat-
ing Expenses required by Section 404 and the payments into
the Current Account and Reserve Account of the Debt Service
Fund required by Section 405, set aside and pay into the Operat-
ing Reserve Account, out of any balance of the Revenues remain-
ing in the Operating Fund, the sum of $16,000.00, or such
larger sum as may hereafter be prescribed by the City Council,
until the moneys held in the operating Reserve Account shall
be equal to twenty-five percentum of the total amount of the
Operating Expenses of the Systems for the twelve months2
period ending on the next preceding September 30th, after
which no further payment need be made into such account un-
less 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 Sec-
tion 405 of this ordinance. Any surplus remaining in the
Operating Fund, after making the payments for Operating Ex-
penses required by Section 404 and the payments into the Cur-
rent Account and Reserve Account of the Debt Service Fund re-
quired by, Section 405 and the payments into the Operation Re-
serve 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 in-
terest 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 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 obli-
gations 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, stipula-
tions and provisions contained herein or in the Bonds at any
time outstanding hereunder. Except as in this ordinance other-
wise 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 bereinabove particularly specified, and nothing
in the Bonds or coupons or in this ordinance shall be con-
strued 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 order and condition and
will continuously operate the same, and will, from time to
time, make all proper repairs, renewals and replacements.
Section 503. The City covenants that it will at all
times fix, establish and collect adequate rates and charges
for the services furnished by the Systems, so that the Reve-
nues derived therefrom will at all times be sufficient to
provide funds for paying Operating Expenses as they become
due and payableAnd for making the ,payment required by Sec-
tdon, 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 insurance in a responsible insurance company, or
companies authorized, and qualified under the laws, of Texas
to assume I the risX, thereof_ coverin such properties, belonging
to the,,,Sy'stems, 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 sys-
tems. 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 5050, The City covenants that, so long as the
Bonds or Any of them shall be outstanding and except as in
this ordinance otherwise,pxpressly 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, Systlems 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 propertyac-
quired by it in connection with the Systems, or any materials
used in connection therewith, if the City shall by resolution
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 money's 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 reasonable detail the revenues
and expenses of the Systems during such fiscal year, the as-
sets 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 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 bolder 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 invested as
bereinbefore provided) shall be adequately secured by
United States Government bonds or other marketable securi-
ties 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.
ARTICLE VI.
MISCELLANEOUS PROVISIONS
Section 601. In consideration of the purchase and ac-
ceptahoe of the Bonds authorized to be issued hereunder by
those who shall hold the same from time to time, this ordi-
nance 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 without preference, priority or distinction of any of
the Bonds or coupons over any other thereof except as express-
ly provided herein.
Section 602. Except as herein otherwise expressly pro-
vided, 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 ordi-
nancel or any covenant, condition or stipulation herein, this
ordinance and all of its covenants, conditions and stipula-
tions being intended to be for the sole and exclusive benefit
of the holders from time to time of the Bonds.
Section 603. In the event that any one or more of the
provisions of this ordinance or propositions referred to
herein shall for any reason be held to be illegal or invalid
by a court of competent jurisdiction or be rendered ineffective
by Act of the Legislature, such illegal, invalid or ineffective
provision or proposition sball not affect any other provision
of or proposition referred to in this ordinance, and this or-
dinance and the Bonds issued pursuant thereto shall be con-
strued and enforced as if such illegal, invalid or ineffective
provision or proposition had not been contained or referred
to in this ordinance.
Section 604. The City hereby covenants that the pro-
ceeds from the sale of the Bonds will be used as soon as
practicable for the purpose for which the Bonds are issued;
that such proceeds will not be invested in any securities or
obligations except for the temporary period pending such use;
and that such proceeds will not be used directly or indirectly
so as to cause all or any part of the Bonds to be or become
"arbitrage bonds" within the meaning of Section 103 (d) of
the Internal Revenue Code of 1954, as amended, or any regula-
tions or rulings prescribed or made pursuant thereto.
Section 605. All ordinances and resolutions in conflict
herewith are hereby repealed insofar as they conflict here-
with.
Section 606. This ordinance shall take effect and be
in full force and effect from and after the date of its pas-
sage.
Section 607. it is hereby officially found and determined
that the meeting at which this ordinance was passed was open
to the public as required by law; and that public notice of
the time, place and purpose of said meeting was given as re-
quired by Chapter 227, Acts of the 61st Legislature, Regular
Session, 19698
Mayes the City of Fort Worth,
Texas
ATTEST
Ci y cre'tary of the City of
ort Worth, Texas
APPROVED AS TO FORM AND LEGALITY:
° ii
01 0? 11110
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 re-
ceived, 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, semi-annually, the first in-
terest payment date being September 1, 1971, and each year
thereafter on March 1 and September 1, until the city's obli-
gation 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 presentation
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 aggregate
principal amount of Seven Million, Six Hundred Thousand Dol-
lars ($7,600,000.00) , dated March 1, 1971, in the denomination
of Five Thousand Dollars ($5,000.00) each, and numbered from
eight hundred and one (801) to two thousand, three hundred
and twenty (2,320) . 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 obligation 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 24, 1971, to which ordinance reference
is hereby made for a more specific description of the revenues
charged with and pledged to the payment of the principal of
and interest on the Bonds, and for a statement of the nature
and extent of such security, of the rights of the bearers of
the Bonds and of the annexed interest coupons with respect to
such security, and of the agreements of the City- with respect
thereto, and for a statement of the conditions upon which ob-
ligations on a parity with this Bond may be issued. The Bonds
of this issue, together with the revenue bonds previously is-
sued, are secured equally and ratably by a pledge of the net
revenues of such Systems.
The Bonds payable subsequent to March 1, 1986, shall be
redeemable prior to their respective maturities, at the op-
tion of the City, on March 1, 1986, or on March 1 of any year
subsequent to 1986, upon the following terms and conditions,
viz.: (1) The Bonds called for redemption on any March 1
must include all of the Bonds then outstanding or must be
the outstanding bonds bearing the highest identifying numbers;
(2) the redemption price shall be par and accrued interest
to date of redemption; and (3) at least thirty days prior to
the date upon which such redemption is to be made, a notice
of intention to make such redemption, describing the Bonds
to be redeemed, must be published at least once in a financial
journal of national circulation 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 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 there-
by has acquired absolute title thereto, free from any defenses
enforceable against any prior holder and free from all equi-
ties 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; pursuant to a proposition 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, 19657 pursuant to Acts of the 61st
Legislature (1969) ; and pursuant to the above mentioned ordi-
nance. All acts, conditions and things required by the con-
stitution or statutes of the State of Texas to exist, be per-
formed 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 Consti-
tution or statutes of said State.
IN WITNESS WHEREOF, this Bond has been signed by the
imprinted or lithographed facsimile signature of the Mayor
of said City, attested by the manual signature of the City
Secretary, and approved as to form and legality by the im-
printed or lithographed facsimile signature of the City
Attorney, and the interest coupons attached hereto have been
signed by the imprinted or lithographed facsimile signatures
of the Mayor and City Secretary, and the official seal of
said City has been duly affixed to, printed, lithographed or
impressed on this Bond, which Bond is dated March 1, 1971.
CITY OF FORT WORTH, TEKAS
ATTEST:
BY
Mayor
City, Secretary,
APPROVED AS TO FORM AND LEGALITY:
City Attorney
The form of coupons attached to said bonds shall be
in substantially- the following form:
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
BOND NO.
bearer, solely, from those certain revenues
On the
referred to in the Bond hereinafter men- lst day of
tioned, at the principal office of the Sept., 19
March,
Manufacturers Hanover Trust Company, in the
SERIES 109
City, of New York, New York, the amount speci- $ ---
fied hereon, being interest then due on its COUPON NO.
Water and Sewer Revenue Bond, Series 109,
dated March 1, 1971. The bolder hereof shall
never have the right to demand payment of
this obligation out of any funds raised or to
be raised by taxation.
CITY OF FORT WORTH, TEXAS
By
Mayor
ATTEST:
City Secretary
(Form of Comptroller's Certificate)
OFFICE OF COMPTROLLER §
STATE OF TMS §
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 pay-
ment 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