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Home My WebLink AboutOrdinance 7305 ORDINANCE NO. AN ORDINANCE PROVIDING FOR THE ISSUANCE OF REVE- NUE BONDS OF THE CITY OF FORT WORTH IN THE AGGRE- GATE PRINCIPAL AMOUNT OF THREE MILLION, SIX HUN- DRED THOUSAND DOLLARS ($3,600,000.00) 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 PORTION OF SUCH REVE- NUES TO SUCH PAYMENT; ENTERING INTO CERTAIN COVE- NANTS AND AGREEMENTS WITH RESPECT TO THE OPERATION OF SUCH SYSTEMS AND THE APPLICATION OF THE REVE- NUES 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 use- ful to obtain a supply of water for said City and its inhabi- tants 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, ;anuary 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- Dol Tgza (t2T'000'000'00) pg&Tua pesu Teaneq brizengz -P -po. 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(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 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- ceunt 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 Three Million, Six Hundred Thou- sand Dollars ($3,600,000.00) for the purpose of making perma- nent city improvements by improving and extending the Water- works System 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, and pursuant to Acts 1969 of the 61st Legislature. Section 103. The Bonds shall be seven hundred and twenty (720) in number, numbered from four thousand and seventy-one (4,071) to four thousand, seven hundred and ninety (4,790) , both inclusive, and of the denomination of Five Thou- sand Dollars ($5,000.00) each, shall be dated March 1, 1976, and shall mature serially on March 1st of each year, as fol- lows: Year Amount 1977 $140,000.00 1978 140,000.00 1979 140,000.00 1980 140,000.00 1981 140,000.00 1982 140,000.00 1983 140,000.00 1984 140,000.00 1985 140,000„00 1986 140,000.00 1987 140,000.00 1988 140,000.00 1989 140,000.00 1990 140,000.00 1991 140,000.00 1992 140,000.00 1993 1401000.00 1994 140,000.00 1995 1401000.00 1996 1401000.00 1997 160,000.00 1998 160,000.00 1999 160,000.00 2000 160,000.00 2001 160,000.00 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, 1976, at the rates as follows: Bonds maturing 1977 to 1989, both incl., 6.50% per annum; Bonds maturing 1990 5.75% per annum; Bonds maturing 1991 5,801% per annum; Bonds maturing 1992 6.00% per annui%; Bonds maturing 1993 6.10% per annum; Bonds maturing 1994 6.20% per annum; Bonds maturing 1995 6.25% per annum; Bonds maturing 1996 to 1997, both incl., 6.30'/ per annum; Bonds maturing 1998 6.40°/ per annum; Bonds maturing 1999 to 2001, both incl., 4.50% per annum; payable September 1, 1976, 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, with- out 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 af- fixed 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 ef- fect 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 sub- sequent holders for value without notice, and to agree that such Bond and each of such coupons may be negotiated by de- livery by any person having possession thereof, howeoever 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 abso- lute title thereto, free from any defense enforceable against any prior holder and free from all equities and claims of owner- ship of any such prior holder. Section 106. The Bonds, the interest coupons to be at- tached 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 pre- sented 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 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 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) 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 issued, the City shall not be in default in making any payment re- quired by Section 404, 405 or 406 of this ordinance; (c) That the amount of the average annual Net Reve- nues of the Systems computed by dividing by two the Net Reve- nues 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 inter- est 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 Bomds issued in accordance with the provisions of this Section 109, 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 voting at an elec- tion 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, 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, 1991, shall be redeemable prior to their respective maturi- ties, at the option of the City, on March 1, 1991, or on any interest payment date subsequent to March 1, 1991, 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 bepublished at least once in a financial journal of national circulation pub- lished in the Borough of Manhattan, in the City and State of New York. Such option may be exercised by ordinance or reso- lution duly adopted by the City Council of the City. Section 202. Nothing contained in this ordinance shall be construed to limit or affect the right of the City to pur- chase, with any moneys lawfully available for such purpose, any of the outstanding Bonds at a price less than the redemp- tion 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 surrender thereof at the place of payment thereof, together with all appurtenant coupons maturing subsequent to the redemption date, such Bonds shall be paid at the redemption price afore- said. 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. In- terest on any Bonds to be redeemed shall cease to accrue from and after the redemption date specified in such notice unless the City defaults in the payment of the redemption price thereof. 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 cred- ited to a special fund, which is hereby created and which shall be known 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 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 $3,600,000.00 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 System, including real estate, personal and intangible properties, whether lying within or without the boundaries of the City, and shall include all improvements, additions and extensions which may hereafter be made to said properties or Systems; (2) the term "Operating Expenses" shall mean the reasonable and proper expenses of operating and maintaining the Systems, including, without limiting the generality of the foregoing, expenditures for salaries, labor, materials, interest, re- pairs and extensions necessary to enable the Systems to render efficient service, and every proper item of expense, but such repairs and extensions shall be limited to those which in the judgment of the City Council are necessary to keep the Systems in operation and to render adequate service to the City and the inhabitants thereof, or necessary to meet some physical accident or condition which would otherwise impair such Systems and the Revenues thereof; (3) the term "Revenues" shall mean the gross revenue and income derived by the City from the operation of the Systems; (4) the term "Net Revenues" shall mean the amount by which the aggregate of the Revenues received by the City in any year shall exceed the amount re- quired to pay the operating Expenses of such year; (5) the term "Issued Bonds" shall mean the Seventy-one Million, Three Hundred and Fifty Thousand Dollars ($71,350,000) Water and Sewer Revenue Bonds which have been heretofore issued pur- suant 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 pur- suant to the ordinances referred to in the preamble of this ordinance; and (6) the term "First Issue Band 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 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 redemption premium, if any, and interest on the Bonds (including Issued Bonds and Additional Bonds is- sued 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 sub- ject 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 having 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 pay- ment 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 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 ensuing on the Bonds (including Is- sued Bonds and Additional Bonds) then out- standing, no payment need be made into the Reserve Account; and provided, further, that no greater payment need be made into the Reserve Account than shall be neces- sary to make the amount in the Reserve Account equal to said aggregate amount of principal and interest. (3) In addition to the amount required by the 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 be- fore 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, in- to the Current Account with respect to said Bonds or Addi- tional 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 pre- viously 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 main- tained. The City Council has ascertained and hereby de- termines that cash and investments amounting in the aggregate to $2,160,828.00 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, 1975. 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 pay- ments into the Current Account and Reserve Account of the Debt service Fund required by Section 405, set aside and pay into the operating Reserve Account, out of any balance of the Revenues remaining in the Operating Fund, the sum of $16,000.00 or such larger sum as may hereafter be prescribed by the City Council, until the moneys held in the Operating Reserve Account shall be equal to twenty-five percentum of the total amount of the Operating 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 into the Current Account and Reserve Account of the Debt Service Fund required by Section 405 and the pay- ments 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 Re- serve 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 prin- cipal of all Bonds issued under this ordinance and the in- terest thereon, on the dates, at the place and in the manner set forth in such Bonds and in the coupons thereto appertain- ing, and that it will faithfully do and perform and at all times duly observe any and all covenants, undertakings, stipu- lations 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 reve- nues are hereby pledged to the payment thereof in the manner and to the extent hereinabove particularly specified, and nothing in the Bonds or coupons or in this ordinance shall be construed as pledging the credit of the City or as obligating the City, directly or indirectly, or 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 payable and for making the payments required by Sec- tion 405 to be made to the Debt Service Fund and the pay- ments 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 the risk thereof, covering such properties belong- ing 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 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 ordi- nance. 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 in connection with the construction or operation and mainte- nance of the Systems, and the proceeds thereof shall be ap- plied to the replacement of the properties so sold or dis- posed of, or shall be deposited to the credit of the operat- ing Fund. The City may from time to time sell or lease such other property forming part of the Systems as it may de- termine is not needed or serves no useful purpose in con- nection 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 cove- nants and agrees that, so long as the Bonds or any of them are outstanding, it will not grant a franchise for the oper- ation 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 allowed except for buildings and institutions operated by the City. Section 508. The City covenants and agrees that, so long as the Bonds or any of them are outstanding, it will not issue Additional Bonds, payable from the Debt Service Fund, except in the manner and subject to the limitations prescribed by Section 109 of this ordinance. Section 509. Nothing contained in this ordinance shall be 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 pre- pared 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 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 per- taining to the financial operation and condition of the Sys- tems during such fiscal year. The City further covenants that it will cause a copy of such statement to be mailed to each of the original purchasers of the Bonds or the Additional Bonds and also to each holder of any of the Bonds or the Ad- ditional 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 here- inbefore provided) shall be adequately secured by United States Government bonds or other marketable securities eli- gible as security for the deposit of trust funds under regu- lations of the Board of Governors of the Federal Reserve Sys- tem, 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- ceptance 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 ben- efit, protection and security of the holders of any and all such Bonds and coupons, all of which, regardless of the time or times of their issue or maturity, shall be of equal rank without preference, priority or distinction of any of the Bonds or coupons over any other thereof except as expressly provided herein. Section 602. Except as herein otherwise expressly pro- vided, nothing in this ordinance is intended or shall be con- strued 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 covenants, conditions and stipulations being intended to be for the sole and exclusive benefit of the hold- ers 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 inef- fective by Act of the Legislature, such illegal, invalid or ineffective provision or proposition shall not affect any other provision of or proposition referred to in this ordi- nance, and this ordinance and the Bonds issued pursuant there- to shall be construed and enforced as if such illegal, in- valid or ineffective provision or proposition had not been contained or referred to in this ordinance. Section 604. The City covenants to and with the pur- chasers of the Bonds that it will make no use of the proceeds of the Bonds at any time throughout the term of this issue of bonds which, if such use had been reasonably expected on the date of delivery of the Bonds to and payment for the Bonds by the purchasers, would have caused the Bonds to be arbitrage bonds within the meaning of Section 103(d) of the Internal Revenue code of 1954, as amended, or any regulations or rulings pertaining thereto; and by this covenant the city is obligated to comply with the requirements of the aforesaid Section 103(d) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City further covenants that the proceeds of the Bonds will not otherwise 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 the aforesaid Section 103(d) or any regulations or rulings pertaining thereto. Section 605. All ordinances and resolutions in conflict herewith are hereby repealed insofar 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. Section 607. It is hereby officially found and de- termined 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 required by Article 6252-17, Vernon's Texas Civil Statutes, as amended. Mayor of the City of Fort Worth, Texas ATTEST! City Secretary of the City of Fort Worth, Texas APPROVED AS TO FORM AND LEGA TY: 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 here- inafter referred to, to the bearer on March 1, , 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, 1976, 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 ma- turity 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 Three million, six Hundred Thousand Dol- lars ($3,600,000.00) , dated March 1, 1976, in the denomina- tion of Five Thousand Dollars ($5,000.00) each, and numbered from four thousand seventy-one (4,071) to four thousand, seven hundred and ninety (4,790) . The Bonds are issued for the im- provement 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 23, 1976, to which ordi- nance 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 condi- tions 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 secured equally and ratably by a pledge of the net revenues of such Systems. The Bonds payable subsequent to March 1, 1991, shall be redeemable prior to their respective maturities, at the option of the City, on March 1, 1991, or on any interest payment date subsequent to March 1, 1991, upon the following terms and conditions, viz.: (1) The Bonds called for redemption on any March 1 must include all of the Bonds then outstanting or must be the outstanding bonds bearing the highest identify- ing numbers; (2) the redemption price shall be par and ac- crued 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 successive holder of each of the coupons hereto attached, is conclusively presumed to forego and renounce his equities in favor of subse- quent 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 abso- lute title thereto, free from any defenses enforceable against any prior holder and free from all equities and claims of owner- ship 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, 1965; 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 Constitution 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 At- torney, 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 im- pressed on this Bond, which Bond is dated March 1, 19760 CITY OF FORT WORTH, TEXAS 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 bearer, solely from those certain revenues BOND NO. referred to in the Bond hereinafter mentioned, On the 1st day of at the principal office of the Manufacturers Sept., Hanover Trust Company, in the City of New March, York, New York, the amount specified hereon, SERIES 109 being interest then due on its water and COUPON NO. Sewer Revenue Bond, Series 109, dated March 1, 1976. 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. CITY OF FORT WORTH, TEXAS BY Mayor ATTEST: City Secretary (Form of comptroller's Certificate) OFFICE OF COMPTROLLER § STATE OF TEXAS § I HEREBY CERTIFY that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that this bond has been examined by him as required by law, and that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas and the Charter of said city, and that it is a valid and binding special obligation of said City of Fort Worth, Texas, payable from the revenues pledged to its payment by and in the ordinancle 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. 1976. Comptroller of Public Accounts of the State of Texas I" City of Fort Worth, Texas LINE �J] BAILIFF Mayor and Council Communication GRAHAM DATE REFERENCE SUBJECT: Sale of $3,600,000 Water and PAGE ROBINBON NUMBER 2/25/76 G--2983 Sewer Revenue Bonds 1 of 1 Bids for $3,600,000 Water and Sewer Revenue Bonds were received Wednesday, February 25, 1976, at 10:00 A.M. A summary of the average net effective interest rates for bids received is shown below: 1. Smith Barney, Harris Upham & Co. 5.8494% 2. Underwood Neuhaus & Co. 5.921527% 3. Salomon Brothers 5.9884% 4. White Weld & Co. 5.988682% 5. Bache, Halsey Stuart, Inc. 5.9937% 6. Merrill Lynch, Pierce, Fenner & Smith 6.0070% It is recommended that the bonds be sold to the bidder offering the lowest interest cost, Smith Barney, Harris Upham & Co. at an average net effective rate of 5.8494%, and that the City Council adopt Ordinance No. 7304 authoriz- ing the issuance of $3,600,000 in Water and Sewer Revenue Bonds. RNL:ms SUBMITTED BY: DISPOSITION COUNCIL: PROCESSES BY P4PPROVED ❑ OTHER (DESCRIBE) � r Cr SECRETARY DATE CITY MANAGER --2s:7 s=161