HomeMy WebLinkAboutOrdinance 7919 �t 3y ORDINANCE VO. 7919
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF WATER
AND SEWER REVENUE BONDS OF THE CITY OF FORT WORTH
IN THE AGGREGATE PRINCIPAL AMOUNT OF SIX MILLION, FIVE
HUNDRED THOUSAND DOLLARS ($6, 500, 000 . 00) TO BE ON A
PARITY WITH CERTAIN OUTSTANDING BONDS OF THE CITY TO
FINANCE THE IMPROVEMENT AND EXTENSION OF THE CITY' S
WATER SYSTEM, IN THE AMOUNT OF $2 , 500 , 000. 00 , AND THE
IMPROVEMENT AND EXTENSION OF THE CITY' S SEWER SYSTEM,
IN THE AMOUNT OF $4, 000, 000; PROVIDING FOR THE PAYMENT
OF SUCH BONDS SOLELY FROM THE REVENUES OF THE CITY'S
COMBINED WATER AND SEWER SYSTEM; PLEDGING A PORTION OF
SUCH REVENUES TO SUCH PAYMENT; ENTERING INTO CERTAIN
COVENANTS AND AGREEMENTS WITH RESPECT TO THE OPERATION
OF SUCH SYSTEMS AND THE APPLICATION OF THE REVENUES
DERIVED THEREFROM; AND REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH.
WHEREAS, the City of Fort Worth (hereinafter referred
to as City) has established, and for many years has main-
tained and operated, and is now maintaining and operating
its water and sewer systems (hereinafter referred to as the
City Water and Sewer Systems) used or useful to obtain a
supply of water for said City and its inhabitants to conserve,
treat and dispose of such water, and collect, treat and
dispose of sewage and waste; and
WHEREAS, revenue bonds, each payable as to principal
and interest and equally secured by a first lien on and
pledge of the revenues of the City' s combined Water and
Sewer Systems , after deduction of reasonable expenses of
System operation and maintenance, have been heretofore
authorized, issued and sold pursuant to ordinances duly
passed and enacted by the City Council of the City of Fort
Worth and in accordance with applicable provisions of the
general laws of the State of Texas; and
[ATHEREAS, each of the ordinances authorizing the pre-
viously issued series of revenue bonds now outstanding
provide certain conditions precedent to the City ' s right to
issue further bonds on a parity therewith; and
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WHEREAS, upon due investigation the City Council has
affirmatively found and concluded that all such conditions
precedent to the issuance of the bonds herein authorized have
been met and satisfied; and
WHEREAS, at an election duly called and held in the City
on February 7, 1978 , a inajority of the qualified electors of
the City voting at such election voted in favor of proposi-
tions authorizing the issuance of Water and Sewer Revenue
Bonds; and
WHEREAS, the City Council has determined that a tabula-
tion correctly reflecting the amounts of revenue bonds so
authorized, the amounts being issued pursuant to this
ordinance is as follows :
Bonds Previously This Unissued
Authorized Issued Issue Balance
Election of February 7,
1978 :
Water System Improvements 20 ,000 , 000 - 2, 500 , 000 1 , 500 , 000
Sewer System Improvements 24 ,000 , 000 - 4, 000,000 20 , 000, 000
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 the bonds herein authorized be
issued and sold, in addition to the bonds heretofore issued
and sold.
k NOTA, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
II, THE CITY OF FORT WORTH, TEXAS:
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ARTICLE I
AUTHORIZATION AND DESCRIPTION OF BONDS
Section 101. Bonds of the City shall be issued in the
aggregate principal amount of Six Million, Five Hundred Thou-
sand Dollars ($6 , 500 , 000 . 00) for the purpose of making `
permanent city improvements by improving and extending the
water system of said City, in the amount of Two Million,
Five Hundred Thousand Dollars ($2 , 500, 000. 00) and by improving
and extending the sewer syster. of. said City, in the amount of
Four Million Dollars ($4 , 000, 000. 00) . 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 111. 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
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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 dated July 1, 1979,
shall be in the denomination of Five Thousand Dollars
($5 ,000. 00) each, shall be numbered from one (1) to one
thousand three hundred (1, 3001 , both inclusive, and shall
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Ij mature serially on March 1st of each year as follows:
YEAR AMOUNT YEAR AMOUNT
1981 $ 150,000 1993 $ 250, 000
1982 150 , 000 1494 275, 000
1983 150, 000 1995 300, 000
1984 150, 000 1996 300, 000
1985 150, 000 1997 325,000
1986 175,000 1998 350, 000
1987 175 , 000 1999 375, 000
1988 200, 000 2000 375 ,. 000
1989 200", 000 2001 400,000
1990 225,000 2002 425,000
1991 225, 000 2003 450,000
1992 250, 000 2004 475, 000
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The Bonds shall be
payable, with respect to both principal �
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and interest, at the principal office of the Manufacturers
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Hanover Trust Company, New York, New York, in lawful money
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I� of the United States of America.
Section 104. The Bonds shall bear interest from their
date at the rates per annum as follows :
maturities 1981 through 1989, 7.00 %
maturities 1990 through 5.60
maturities 1991 throucrh 1992► 5.25
maturities 1993 through 1994► 5.30
maturities 1995 through 1996► 5.40
maturities 1997 through 1998, 5.50 $
maturities 1999 through 2000, 5.60
maturities 2001 through 2002 , 5.70 %
maturities 2003 through 2004 ► 5.00 %
maturities through , %
evidenced by coupons appertaining to each of the Bonds ,
payable March 1, 1980, and semiannually thereafter on
September 1st and March 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 by the facsimile signature of 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. Such facsimile
signatures- shall have the same effect as if manually placed
on said Bonds and coupons . Each successive holder of each
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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 without notice, and to agfee 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 acquires? , 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 defense enforceable against
any prior holder and free from all equities and claims of
ownership of any such prior holder.
Section 106 . The Bands, 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:
(FORM OF BOND)
NO. $5, 000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF FORT WORTH
WATER AND SETATER REVENUE BOND
SERIES 111
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
I hereinafter referred to, to the bearer on March 1, ,
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the principal sum of FIVE THOUSAND DOLLARS ($5, 000) , and to I
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pay, solely from said revenues, interest on said principal
sum from the date of. this Bond, at the rate of
per centum %) per annum, semiannually, the first
interest payment date being Marchi 1, 1980, and each year
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thereafter on September 1 and March 1, until the City ' s
obligation with respect to the payment of said principal sum
shall be paid. 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 sever-
ally mature. Payment of the principal of and interest on
this Bond, without collection charges to the owner or holder
thereof, will be made at the principal office of the Manu-
facturers Hanover Trust Company in the Borough of Manhattan,
City and State of New York, in lawful money of the United
States of America.
This Bond is one of a duly authorized issue of bonds of
the City, known as its Water and Sewer Revenue Bonds, Series
111 (hereinafter called the "Bonds" ) , in the aggregate
principal amount of Six Million, Five Hundred Thousand
Dollars ($6 , 500, 000. 00) , dated July 1, 1979 , in the denomi-
nation of Five Thousand Dollars ($5, 000. 00) each, and num-
bered from one (1) to one thousand three hundred (1, 300) .
The Bonds are issued for making permanent city improvements
by improving and extending the water system of the City, in
the amount of Two Million, Five Hundred Thousand Dollars
($2,500, 000 . 00) and by improving and extending the sewer
system of the City, in the amount of Four Million Dollars
($4 ,000, 000. 00) , 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 tc 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 June 13, 1979, to which ordinance reference is
hereby made for amore 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
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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 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 .
On March 1, 1989, or on any interest payment date
thereafter, any outstanding bonds of the series of which
this bond is a part may be redeemed prior to their scheduled
maturities , at the option of said City, in whole or in part, l�
for the principal amount thereof and accrued interest thereon
to the date fixed for redemption. At least thirty days
prior to the date fixed for any such redemption said City
shall cause a written notice of such redemption to be pub-
lished at least once in a financial publication published in
the City of New York, New York. By the date fixed for any
such redemption due provision shall be made with the paying
agent for the payment of the principal amount of the bonds
which are to be so redeemed and accrued interest thereon
to the date fixed for redemption. If such written notice of
redemption is published and if due provision for such pay-
ment is made, all as provided above, the bonds which are to
be so redeemed thereby automatically shall be redeemed prior
to their scheduled maturities , and they shall not bear
interest after the date fixed for redemption, and they shall
not be regarded as being outstanding except for the right of
the bearer to receive the redemption price from the paying
agent out of the funds provided for such payment.
Each successive holder of. this Bond, and each success-
ive holder of each of the coupons hereto attached, is
conclusively presumed to forego and renounce his equities
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in favor of subsequent holders for value without notice,
and to agree that this Bond and each of the coupons hereto
attached may be negotiated by delivery by any person having
possession thereof, howsoever such possession may have been
acquired, and that any holder who shall have taken this Bond
or any of the coupons .from any person for value and without
notice thereby has acquired absolute title thereto, free
from any defenses enforceable against any prior holder and
free from all equities and claims of ownership 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. All acts , conditions and things re-
quired by the Constitution or statutes of the State of Texas
to exist, be performed or happen precedent to or in the
issuance of this Band 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 imprinted or facsimile signa-
ture of the City Secretary, and approved as to form and
legality by the imprinted or lithographed facsimile signa-
ture 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
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the official seal of said City has been duly affixed to,
printed, lithographed or impressed on this Bond, which Bond
is dated July 1 , 1979 .
i CITY OF FORT WORTHr TEXAS
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`= ATTEST: BY
Mayor
City Secretary
APPROVED AS TO FORM AND LEGALITY:
City Attorney
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The form of coupons attached to said Bonds shall be in
substantially the following form:
(FORM OF INTEREST COUPON)
NO. $
On the 1st day of ,' , unless the Bond
hereinafter mentioned shall have been called for previous j
redemption and payment thereof made or duly provided for,
the City of Fort Worth, Texas, will pay to bearer, solely
from those certain revenues referred to in the Bond herein-
after mentioned, at the principal office of the Manufacturers
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Hanover Trust Company, in the City of New York, New York,
the amount specified hereon, being interest then due on its
Water and Sewer Revenue Bonds, Series 111, dated July 1 ,
1979 . 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. Bond No.
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CITY OF FORT WORTH, TEXAS
BY
Mayor
C' ATTEST:
City Secretary
(FORM OF COMPTROLLER' S CERTIFICATE)
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OFFICE OF COMPTROLLER OF
REGISTER NO.
THE STATE OF TEXAS
I hereby certify that there is on file and of record in
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p my office a certificate of the Attorney General of the State
({ of Texas to the effect that this bond has been examined by
E him as required by law, and that he finds that it has been
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issued in conformity with the Constitution and laws of the
State of Texas and the Charter of said City, and that it is
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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 :game, and said bond
has this day been registered by me.
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Witness my hand and seal of office at Austin, Texas , I
this day of 1979 .
Comptroller of Public Accounts
of the State of Texas
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 reqistration prescribed
herein to be printed on the back of each Bond, and the seal
i 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
f!; authorized to execute said Bonds and to affix, impress , print
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or lithograph thereon the corporate seal of the City. The
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City Treasurer is hereby authorized to deliver said Bonds
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I to the purchaser or purchasers to whom they may be sold by
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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
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Fund hereinafter referred to and secured, equally and rata-
bly with the Bonds authorized by this ordinance, by a pledge
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of the Revenues of the Systems, but only upon the following
conditions:
(a) That the Additional Bonds shall be issued for the
�j purpose of improving or extending the Systems;
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(b) That at the time the Additional Bonds are issued,
the City shall not be in default in making any payment
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required by Sections 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 (including Issued
Bonds as hereinafter defined) and the Additional Bonds about
to be issued; provided that at such time as none of the
Issued Bonds issued prior to the issuance of the Bonds (the
Series 111 Bonds) is outstanding, the requirement of this
paragraph (c) shall be that the amount of the Net Revenues
for the last preceding fiscal year immediately preceding the
issuance of the Additional Bonds shall be not less than 150%
of the average annual principal and interest payable in the
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future fiscal years 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
k shall be made payable semiannually on March 1 and September 1.
All Bonds issued in accordance with the provisions of
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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 election held for that purpose, whether issued by virtue
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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 indebt-
edness , within the meaning of Article 1113 of the 1925
Revised Statutes of Texas, as amended.
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ARTICLE II
REDEMPTION OF BONDS BEFORE MATURITY
Section 201. On March 1, 1989, or on any interest
payment date thereafter, any outstanding bonds of the series
of which this bond is a part may be redeemed prior to their
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scheduled maturities , at the option of said City, in whole
or in part, .for the principal amount thereof and accrued
interest thereon to the date fixed for redemption. At least
thirty days prior to the date fixed for any such redemption
said City shall cause a written notice of such redemption to
be published at least once in a financial publication pub-
lished in the City of New York, New York. By the date fixed
" for any such redemption due provision shall be made with the
paying agent for the payment of the principal amount of the
(4 bonds which are to be so redeemed and accrued interest
thereon to the date fixed for redemption.
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
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redemption price hereinbefore prescribed.
Section 203 . If such written notice of redemption is
published and if due provision for such payment is made,
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all as provided above, the bonds which are to be so re-
Y deemed thereby automatically shall be redeemed prior to
their scheduled maturities, and they shall not bear interest
after the date fixed for redemption, and they shall not be
regarded as being outstanding except for the right of the
bearer to receive the redemption price from the paying agent
out of the funds provided for such. payment.
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ARTICLE III
APPLICATION OF PROCEEDS OF BONDS j
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
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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 depos-
ited with the City' s depositary or depositaries and shall be
subject to a lien and charge in favor of the holders of the
Bonds, and shall be held for the further security of such
holders until paid out as hereinafter provided.
Section 302. From the moneys credited to the Construc-
tion Fund the City shall apply the sum of $2 ,500, 000. 00 to
the payment of the cost of improving and extending the City
Hater System, and the sura of $4 ,000 , 000. 00 to the payment
of the cost of improving and extending the City Sewer System.
Section 303. The amount received by the City from the
purchasers of the Bonds as accrued interest, if any, shall
be paid by the City into the Current Account of the Debt
Service Fund hereinafter described.
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ARTICLE IV
APPLICATION OF REVENUES
Section 401. where used in this ordinance (1) the term i
"Systems" shall be deemed to include all properties of every
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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 g properties,
whether lying within or without the boundaries of the City, I
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, C
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 other-
wise impair such. Systems and the Revenues thereof; (3) the
term "Revenues" shall mean the gross revenue and income de-
rived by the City from the operation of the Systems; (4) the
term "Net Revenues" shall mean the amount by which the
aggregate of the Revenues received by the City in any year
shall exceed the amount required to pay the Operating
Expenses of such year; C5I the term "Issued Bonds" shall
mean the THater and Sewer Revenue Bonds which have been
heretofore issued by the City pursuant to the authority
given by the propositions adopted at said elections held in
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the City on January 25, 1949 , January 26 , 1954, January 31,
1956, and October 19, 1965; and (6) the term "First Issue
Bond Ordinance" shall mean the ordinance adopted by the City
Council on April 20, 1949 authorizing the issuance of the
initial issue of Issued Bonds.
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Section 402. All Revenues (as defined in Section 401
of this ordinance) received or collected by the City or any
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of its officers or agencies shall be deposited by the City
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Treasurer, as promptly as possible after their receipt, in a
1 bank or banks authorized to act as depositary or depositar-
ies of the City, and shall be held by such bank or banks in j
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a special fund or account to be known as the "Water and
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I� Sewer Operating Fund" (hereinafter referred to as the
Operating Fund) , established by the First Issue Bond Ordinance. i
Section 403. Subject only (1) to the right of the City
to pay from the Operating Fund moneys required for Operating
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Expenses as provided in Section 404 of this ordinance and
(2) to the right of the City to expend moneys in the Opera-
ting Fund in accordance with Section 406 of this ordinance,
all moneys paid or required by Section 402 to be paid into
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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 ordi-
nance) , and this pledge shall be valid and binding from and
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�I after the earliest date (hereinafter referred to as the
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Issuance Date) upon which any bonds are issued pursuant to
11 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
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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
Ordinance shall be continued and maintained, and such Special
Fund shall be divided into a "Current Account" and a "Reserve
Account" as provided in the First Issue Bond Ordinance. All
moneys paid into such accounts as hereinafter provided and
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+� as provided in the First Issue Bond Ordinance shall be de-
posited in one or more depositaries of the City as a Special j
Fund and shall be kept separate from all other moneys of the
City.
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(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 Citv shall, out
II of the moneys remaining in the Operating Fund after payment
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�I of Operating Expenses then due and payable, pay
! (a) Into the Current Account of the Debt
Service Fund:
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(1) An amount equal to one-sixth (1/6) I
of the interest payable on the Bonds i
(including Issued Bonds and Additional i
Bonds) then outstanding on the interest i
payment date next ensuing, less the
amount, if any, receivee as accrued
interest from the purchasers of the
Bonds and deposited to the credit of
the Current Account and available for the
purpose of paying said interest; and
(2) An amount equal to one-twelfth (1/12) of
the 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 (20%)
of said payments into the Current Account;
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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
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 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 fore-
going 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
1j Fund after the payment of. Operating Expenses then due and
t payable, an amount equal to the amounts , if any, which would
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have been theretofore paid, pursuant to said foregoing pro-
visions , into the Current Account with respect to said Bonds
or Additional Bonds (a) on account of interest, if said
Bonds or Additional Bonds had been delivered six months
before the interest payment date next ensuing, and (b) on
account of principal , if said Bonds or Additional Bonds had
1 been delivered one year before the principal 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 prin-
cipal 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
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!i section to be paid into such account up to such time, after
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j deducting, in the case of the Current Account, moneys
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previously applied to, or set aside and held by the City
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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) TVThenever and for so long as the moneys in the
{ Debt Service Fund are at least equal to the aggregate prin-
cipal amount of the Bonds and Issued Bonds and Additional
Bonds issued and unpaid, plus the amount of interest then
i
due and thereafter to become due on the Bonds and Issued
Bonds and Additional Bonds issued and unpaid, no further
i� payment need be made into the Debt Service Fund.
Section 406 . The special account in the Operating Fund
�kknown 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
$3 ,434 ,985 . 00 have been set aside in accordance with the
f
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 , 1978 . In the event that the moneys held in
said account shall hereafter be less than twenty-five per-
centum. of the total amount of the Operating Expenses of the
Systems for any twelve months ' period ending on the next
�c 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
i
18
1 Account and Reserve Account of the Debt Service Fund
1 reauired by Section 405 , set aside and pay into the Opera-
ting Reserve Account, out of any balance of the Revenues
remaining in the Operating Fund, the' sum of $29 , 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
E
amount of the Operating Expenses of the Systems for the
i
twelve months ' period ending on the next preceding September
30th, after which no further payment need be made into such
I�
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
y 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 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
I paving 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
saidcseur . All moneys in the Debt Service Fund shall be
P P _.
19
i
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
r
times to be a part of such account, and the interest accru-
ing 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 obli-
gations so purchased whenever it may be necessary so to do
i in order to provide moneys to meet any payment or transfer
from such account.
i
1
i
�I
i
20
ARTICLE V
I
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
i
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 duly observe any and all covenants , undertakings ,
stipulations and provisions contained herein or in the Bonds
at any time outstanding hereunder. Except as in this ordi-
nance otherwise provided, such principal and interest are
payable solely from the Revenues derived from the Systems ,
which revenues are hereby pledged to the payment thereof in
the manner and to the extent hereinabove particularly speci-
fied, and nothing in the Bonds or coupons or in this
ordinance shall be construed as pledginq the credit of the
City or as obligating the Citv, 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
Section 405 to be made to the Debt Service Fund and the
payments required by Section 406 to be made to the Operation
Reserve Account, and to pay any other indebtedness which may
become a charge upon the revenues of the Systems .
21
i
Section 504 . The City_ covenants tht it will at all
i times carry insurance in a responsible insurance company or `
icompanies authorized and p qualified under the laws of Texas
I
to assume the risk thereof, covering such properties belong- j
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
i� sewer systems. The proceeds of any and all such insurance
i
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
i
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
maintenance of the Systems, and the proceeds thereof shall
be applied to the replacement of the properties so sold or
disposed of, or shall be deposited to the credit of the
Operating Fund. The City may from time to time sell or lease
such other property forming part of. the Systems as it may de-
termine is not needed or serves no useful purpose in con-
nection with the maintenance and operation of the Systems.
22 C
s
�1
I I
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 their 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 Cseparate 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
1
the close of each fiscal year, the City will cause to be pre-
pared a statement, certified by a competent and independent
i.
I' 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
i'.
23
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 in-
formation as may be necessary to enable the holders of the
Bonds and the Additional Bonds to be fully informed as to
all matters pertaining to the financial operation and con-
dition 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 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 inves-
ted as hereinbefore provided) shall be adequately secured by
United States Government bonds or other marketable securities
elegible 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 quali-
fied as security for United States Government deposits, or
as may be required by the applicable laws of the State of
Texas .
24
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
benefit, protection and security of the holders of any and
all such Bands 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 ex-
pressly provided herein.
Section 602 . Except as herein otherwise expressly pro-
i
vided, nothing in this ordinance is intended or shall be
construed to confer upon any person, firm or corporation,
i
other than the holders of the Bonds , any right, remedy or
j claim, legal or equitable, under or by reason of this ordi-
nance, or any covenant, condition or stipulation herein,
I' this ordinance and all of its covenants, conditions and
stipulations being intended to be for the sole and exclusive
I
benefit of the holders from time to time of the Bonds.
Section 603 . In the event that any one or more of to
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
i other provision of or proposition referred to in this ordi-
nance, and this ordinance and the Bonds issued pursuant
jthereto shall be construed and enforced as if such illegal,
I
25
invalid 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 (c) 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 (c) 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 (c) or
any regulations or rulings pertaining thereto.
Section 605. That said Series 111 Bonds are hereby
sold and shall be delivered to MERRILL LYNCH WHITE WELD CAPITAL
MARKETS GROUP. Merrill Lynch , for the principal amount
Pierce, Fenner & Smith Inc.,
thereof and accrued interest to the date of delivery, plus a
premium of $ None
Section 605. All ordinances and resolutions in con-
flict 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 deter-
mined that the meeting at which this ordinance was passed
was open to the public, and public notice of the time, place
and purpose of said meeting was given, all as required by
26
Vernon ' s Texas Civil Statutes , Article 6252-17, as amended.
Mayor of the City of Fort Worth,
_ Texas
J
ATTEST:
:
Wil}~ Secretary of the City o
'Ferrt TKorth, Texas
ROVED AS TO FORM AND LEGALITY:
s
� ale-r�-
ity Attorney bf the City of
, Fort Worth, Texas
27
i
THE STATE OF TEXAS
COUNTY OF TARRANT
CITY OF FORT WORTH
I , Jack W. Green, City Secretary of the City of Fort
Worth, in the State of Texas , do hereby certify that I have
compared the attached and foregoing excerpt from the minutes
of the regular, open, public meeting of the City Council of
the City of Fort Worth, Texas , and of Ordinance No. 7919
which was duly passed at said meeting, and that said copy is
a true and correct copy of said excerpt and the whole of
said ordinance.
In testimony whereof, I have set my hand and have here-
unto affixed the seal of said City of Fort Worth, this
day of June, 1979 .
,CCi y Secretary of the City of
Fort Worth, Texas
i
SIGtiATURE IDENTIFICATION AND NO-LITIGATION CERTIFICATE
THE STATE OF TEXAS
COUNTY OF TARRANT
CITY OF FORT WORTH
We, the undersigned, hereby certify as follows:
(a) That this certificate is executed and delivered with reference to that issue of
CITY OF FORT WORTH WATER AND SEWER
REVENUE BONDS,
Series 111 , dated July ]., 1979 , in the principal amount of$6 , 500, 000.
(b) That we officially executed and signed said Bonds and the interest coupons attached thereto by
causing facsimiles of our manual signatures to be imprinted or lithographed on each of said Bonds and
interest coupons, and we hereby adopt said facsimile signatures as our own, respectively, and declare
that said facsimile signatures constitute our signatures the same as if we had manually signed each of
said Bonds and interest coupons.
(c) That said Bonds and interest coupons are substantially in the form, and have been duly ex-
ecuted and signed in the manner, prescribed in the order, resolution, or ordinance authorizing the issu-
ance of said Bonds and interest coupons.
(d) That at the time we so executed and signed said Bonds and interest coupons we were, and at
the time of executing this certificate we are, the duly chosen, qualified, and acting officers indicated
therein, and authorized to execute the same.
(e) That no litigation of any nature has been filed or is now pending to restrain or enjoin the issu-
ance or delivery of said Bonds or interest coupons, or which would affect the provision made for their
payment or security, or in any manner questioning the proceedings or authority concerning the issu-
ance of said Bonds and interest coupons, and that so far as we know and believe no such litigation is
threatened.
(f) That neither the corporate existence nor boundaries of said issuer is being contested, that no
litigation has been filed or is now pending which would affect the authority of the officers of said issuer
to issue, execute, and deliver said Bonds and interest coupons, and that no authority or proceedings for
the issuance of said Bonds and interest coupons have been repealed, revoked, or rescinded.
(g) That we have caused the official seal of said issuer to be impressed, or printed, or lithographed
on each of said Bonds; and said seal on said Bonds has been duly adopted as, and is hereby declared to
be, the official seal of said issuer.
EXECUTED and delivered this
MANUAL SIGNATURES OFFICIAL TITLES
M! or Cit of Fort Worth Texas
�9— City Secretary, City of Fort Worth,
.. .....\.... \............. ....... ............. ........... .. . . ..................::...................................
Telfa -----------------------------------------------------------------------------
........
Attorney, City of Fort Worth,
Texa
The signatures of the officers su9scribed above
are hereby certified to be true and genuine.
(BANK SEAL) ..........................................................................................
Bank
By....................................................................................
Authorized Officer
LAW OFFICES
McCall, Parkhurst & Horton
1400 Mercantile Bank Building
Dallas, Teas 75201
.� City of Fort Forth, Texas
IM Rbg►p$vH Mayor and Council Communication
tvARY
IERCHCRT DATE REFERENCE SUBJECT: Sale of $6,500,000 Grater and PAGE
BAILIFF NUMBER Sewer Revenue Bonds
6/13/79 G-4201 > °r _2_
IYITH
yATSON
BLA6 OLL
Bids for $6,500,000 Water and Sewer Revenue Bonds were received Wednesday, June
13, 1979, at 11:00 A.M. A summary of the average annual effective interest
rates for the bids received is shown below.
Gross Less Net Effective
Bidder Interest Cost Premium Interest Cost Interest Rate
Merrill Lynch White
Weld Capital Markets
Group $5,665,420.84 $ -0- $5,665,420.84 5.536242%
First City National
Bank of Houston 5,720,062.50 -0- 5,720,062.50 5.589638%
Bache Halsey Stuart
Shields, Inc. 5,721,520.83 390.00 5,721,130.83 5.5906%
Dean Witter Reynolds,
Inc. , Dallas, Texas 5,739,625.00 106.75 5,739,518.25 5.60865%
Underwood Neuhaus &
Co. , Inc. and
Associates 5,747,508.33 -0- 5,747,508.33 5.616458%
Salomon Brothers and
Associates 5,761,454.17 202.75 5,761,251.42 5.6298%
Smith Barney, Harris
Upham & Co., Inc. and
Associates 5,795,583.33 1,027.50 5,794,555.83 5.662432%
The First Boston
Corporation E. F.
Hutton & Company 5,835,491.67 60.25 5,835,431.42 5.7023%
John Nuveen & Co. ,
Inc. 5,888,650.00 25.00 5,888.625.00 5.7543%
s
DATA REFERENCE SUBJECT: Sale of $6,500 000 Water and PAGE
NUMBER >
Sewer Revenue Bonds 2 ,f 2
6/13179 G-4201
Recommendations
It is recommended that:
1. The City Council adopt the attached resolution approving the "Notice of
Sale and Bidding Instructions", "Official Bid Form" and 'Official Statement"
prepared in connection with the issuance of the $6,500,000 Water and Sewer
Revenue Bonds and the $38,975,000 General Purpose Bonds.
2. The bonds be sold to the bidder offering the lowest interest cost, Merrill
Lynch White Weld Capital Markets Group at an average net effective rate of
5.536242% and that the City Council adopt the attached Ordinance authorizing
the issuance and sale of $6,500,000 in Water and Sewer Revenue Bonds.
MCM:plg
SUBMITTED FOR THE DISPOSITIO Y COUNCIL: PROCESSED BY
CITY MANAGER'S APPROVED (� t/ L,
OFFICE BY: (J//-�.,�I
ADOPTS �! R CRIBS)
ORIGINATING � �
DEPARTMENT HEAD: t-����' °i i"� �. ! '�':. /- C CITY SECRETARY
M.C. Matspn
FOR ADDITIONAL INFORMATION
TE
M.C..C. Matson, Ext.. 6124
CONTACT:
d
PREPARED BY: FIRST SOUTHWEST COMPANY, 900 MERCANTILE BANK BUILDING, DALLAS, TEXAS 75201
TABULATION OF BIDS
RECEIVED AT SALE OF
111
old c ilunt �3, ,4�q C 1 I oo 14w1 CST
GROSS LESS NET EFFECTIVE
ACCOUNT MANAGER INTEREST COST PREMIUM INTEREST COST INTEREST RATE
�� �y'eu� �O - s;!o(o�t1Zo.8y S—.s'3e�Z✓o
Wsel S� �1•�e��S �Kc.. �?L/,S ZD,8'3 3�4D.o $
I S 7Z/, 130, 3-?
peace W c�he.r /�e�n c9��s ,Z'►�c �s,739�GZS� �l�l,7s �s' 7
7 S;797)11D?,379 5� 7,S'O,F.
t4s souk c
elamev� SrvfA S A'S so.tajLe5 h;Al SYS l 17
�7612�'l .y2 S.h2987
G,^ l ) ►x'17 15 ,�'Kc. $S Sr S 83-3
f455cxicc�es � �' r79ti,�S83 s��l�27
� utta►1 a- �f,83S,yc//,(07 GD.ZS �,83�Siy3l.yZ 5,70Z317o
LU, A. Vee,,ti.
,S 7S-Y 32