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HomeMy WebLinkAboutOrdinance 3031 JRDINANCE NO. AN ORDINANCE PROVIDING FOR THE ISSUANCE OF REVENUE BONDS OF THE CITY OF FORT WORTH IN THE AGGREGATE PRINCIPAL AMOUNT OF THREE MILLION, ONE HUNDRED THOUSAND DOLLARS ($3,100,000.00), IN ADDITION TO FOUR INSTALLMENTS AGGREGATING FOURTEEN MILLION, NINE HUNDRED THOUSAND DOLLARS ($14,900,000.00) OF REVENUE BONDS HERETOFORE ISSUED AND SOLD OUT OF AN AUTHORIZED ISSUE OF EIGHTEEN MILLION DOLLARS ($18,000,000.00), TO FINANCE THE IM- PROVEMENT, EXTENSION AND 4flARGEMENT CF THE CITY'S WATER AND SEWER SYSTEMS; PROVIDING FOR THE PAYMENT OF SUCH BONDS SOLELY FROM THE REVENUES OF SUCH SYSTEMS; PLEDGING A PORTION OF SUCH REVENUES TO SUCH PAYMENT; ENTERING INTO CERTAIN COVENANTS AND AGREEMENTS WITH RESPECT TO THE OPERATION OF SUCH SYSTEMS AND THE APPLICATION OF THE REVENUES DERIVED '1WGFROM; AND REPEAL- ING ALL ORDINANCES IN CONFLICT HEREWITH. WHEREAS, the City of Fort Worth (hereinafter referred to as City) has established, and for many years has maintained and operated, and is now maintaining and operating, a system (hereinafter referred to as the City Water System) used or useful to obtain a supply of water for said City and its inhabitants and to conserve, treat and dispose of such water, and also a system (hereinafter referred to as the City Sewer System) used or useful for the collection, treatment and disposal of sewage and waste; and, WHEREAS, at an election duly called and held in the City on Jan- uary 25, 1949, a majority of the qualified voters of the City voted in favor of each of the following two propositions: PROPOSITION NO. 1 Shall the City of Fort Worth, Texas, through its City Council, issue its negotiable coupon bonds in the principal sum of Twelve Million, Four Hundred Thousand Dollars ($12,- 400,000.00) for the purpose of improving, extending and en- larging the Waterworks System of said City, said bonds to be issued at one time or in installments from time to time as the City Council shall determine, the bonds of each in- stallment being payable serially as may be determined by the City Council, so that the last maturing bonds shall be- come payable within forty (40) years from the date thereof, and bearing interest at a rate not to exceed four per cent (4%) per annum from the date thereof, payable semi-annually, and to provide for the payment of principal and interest on said bonds by pledging the net revenues from the opera- tion of the Waterworks System of said City, or in the event that the City Council be authorized to issue Sewer System revenue bonds as submitted in Proposition No. 2, to be se- cured additionally by a pledge of the net revenues from the operation of said Sewer System? PROPOSITION NO. 2 Shall the City of Fort Worth, Texas, through its City Council, issue its negotiable coupon bonds in the rincipal sum of Five Million, Six Hundred Thousand Dollars ($5,600,000.00) for the purpose of improving, extending and enlarging the ex- isting Sever System of said City, said bonds to be issued at one time or in installments from time to time as the City Counoil shall determine, the bonds of each installment being payable serially as may be determined by the City Council, so that the last maturing bonds shall become payable within forty (40) years from the date thereof, and bearing interest at a rate not to exceed four per cent (4%) per annum from the date thereof, payable semi-annually, and to provide for the payment of principal and interest on said bonds by pledging the net revenues from the operation of the Sewer System of said City, or in the event that the City Council be authorized to issue Waterworks System revenue bonds as submitted in Propo- sition No. 1, to be secured additionally by a pledge of the net revenues from the operation of said Waterworks System?; and, WHEREAS, the ordinance calling said election provided that if both propositions were duly approved at said election, the City Council could, at its option, combine the Twelve Million, Four Hundred Thousand Dollars ($12,400,000.00) Waterworks System Revenue Bonds and the Five Million, Six Hundred Thousand Dollars ($5,600,000.00) Sewer System Revenue Bonds into one issue and pledge the Net Revenues from the operation of both the Waterworks System and the Sewer System to the payment of the principal of and the interest on said entire issue of bonds; and, WHERFM, the City Council of the City of Fort Worth, Texas, by ordinance duly adopted on the 20th day of April, 1949, did authorize the issuance of Two Million Dollars ($2,000,000.00) of Water and Sewer Revenue Bonds combined in one issue, said bonds being numbered from one (1) to two thousand (2,000), both inclusive; and the said City Council, by ordinance duly adopted on the 14th day of September, 1949, did authorize the issu- ance of Two Million, Six Hundred and Fifty Thousand Dollars ($2,650,000.00) of Water and Sewer Revenue Bonds combined in one issue, said bonds being 'numbered from two thousand and one (2,001) to forty-six hundred and fifty (4,650), both inclusive; and the said City Council, by ordinance duly adopted on the 28th day of February, 1951, which ordinance was amended on required in any of the provisions of said ordinances authorizing the is- suance of Two Million Dollars ($2,000,000.00) Water and Sewer Revenue Bonds, adopted the 20th day of April, 1949, and authorizing the issuance of Two Million, Six Hundred and Fifty Thousand Dollars ($2,650,000.00) Water and Sewer Revenue Bonds, adopted the 14th day of September, 1949, and authorizing the issuance of Six Million Dollars ($6,000,000.00) Water and Sever Revenue Bonds, adopted the 28th day of February, 1951, which ordinance was amended the 7th day of March, 1951, and authorizing the is- suance of Four Million, Two Hundred and Fifty Thousand Dollars ($4,250,- 000.00) Water and Sever Revenue Bonds, adopted the 27th day of February, 1952; that the amount of the average annual Net Revenues of the Systems computed by dividing by two the Net Revenues for the two fiscal years im- mediately preceding the time of issuance of the additional bonds is far in excess of 150% of the maximum aggregate amount of principal and interest payable in any future fiscal year with respect to the bonds now outstand- ing and the additional bonds now proposed to be issued; and that the prin- cipal of the additional bonds shall be made payable on March let of the years in which such principal is payable, and the interest on the addi- tional bonds shall be made payable semi-annually on September let and March lot of each year, respectively; and, WHEREAS, Four Million, Three Hundred Thousand Dollars ($4,300,000.00) of said bonds authorized by said ordinances adopted on April 20, 1949, September 14, 1949, February 28, 1951, which ordinance was amended on March 7, 1951, and February 27, 1952, were issued for the purpose of im- proving, extending and enlarging the City Sewer System and Ten Million, Six Hundred Thousand Dollars ($10,600,000.00) of said bonds authorized by said ordinances were issued for the purpose of improving, extending and enlarging the City Water System; and, WHEREAS, it is deemed wise and expedient by the City Council of the City of Fort Worth, Texas, in the exercise of the discretion reposed in it by law, that Three Million, One Hundred Thousand Dollars ($3,100,000.00) of said bonds, in addition to the Fourteen Million, Rine Hundred Thousand Dollars ($14,900,000.00) of said bonds heretofore issued and sold out of the authorized issue of Eighteen Million Dollars ($18,000,000.00), be issued in bonds at this time, said bonds to be issued being a part of Series 80, designated "Water and Sever Revenue Bonds"; and, WHEREAS, the following terms, where used in this ordinance, un- less the context shall indicate another or different meaning or intention, are to be construed and used and are intended to have meanings as follows: (1) "City Water System" and "City Sever System" — mean the systems described in the first para- graph of this ordinance. (2) "Bonds" shall mean the bonds described in Section 101 of this ordinance. (3) "Additional Bonds" shall mean the bonds here- after 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 ordinance. (6) "Revenues" and "Net Revenues" shall mean, respectively, Revenues and Net Revenues as defined in Section 401 of this ordinance. (7) "First Issue Bond Ordinance" shall mean the ordinance hereinbefore described adopted by the City Council on April 20, 1;49. (8) 'Operating Fund" shall mean the fund described in Section 402 of this ordinance. (9) "Debt Service Fund" and "Current Accoupt" and "Reserve Account" shall mean the Debt Service Fund, the Current Account and the Reserve Ac- count described in Section 405 of this ordinance. (10) 'Operation Reserve Account" shall mean the Operation Reserve Account described in Section 406 of this ordinance. (11) "Issuance Date" shall mean the first day on which any of the Bonds are delivered. (12) "Year" or "Fiscal Year" shall mean the yearly period beginning October 1 in each year. NOW, 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, being a part of the bonds re- ferred to in Proposition No. 1 adopted at the election held January 25, 1949, shall be issued at this time in the aggregate principal amount of One Million, Eight Hundred Thousand Dollars ($1,800,000.00) for the pur- pose of improving, extending and enlarging the City Water System, and bonds of the City, being a part of the bonds referred to in Proposition No. 2 adopted at the election held as aforesaid, shall be issued at this time in the aggregate principal amount of One Million, Three Hundred Thou- sand Dollars ($1,300,000.00) for the purpose of improving, extending and enlarging the City Sever System. All of such bonds (hereinafter referred to as the Bonds) shall constitute a single issue, be a part of Water and Sever Revenue Bonds, Series 80, and be in addition to the Fourteen Million, Nine Hundred Thousand Dollars ($14,900,000.00) of said Bonds heretofore issued out of the Eighteen Million Dollars ($18,000,000.00) in Bonds au- thorized to be issued at the said election held on January 25, 1949. The Bonds shall be payable solely from the Net Revenues of the Systems, as defined in Section 401 of this ordinance. The credit of the City shall not be pledged for the payment of the Bonds. The holder or holders of the Bonds shall never have the right to demand 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, includ- ing particularly Articles 1111 to 1118, inclusive, of the 1925 Revised Civil Statutes of Texas, as amended. Section 103. The Bonds shall be thirty-one hundred (3,100) in num- ber, numbered from fourteen thousand, nine hundred and one (14,901) to eighteen thousand (18,000), inclusive, and of the denomination of One Thou- sand Dollars ($1,000.00) each, shall be dated March 1, 1953, and shall ma- ture serially in numerical order on March lot of each year, as follows: Year Amount Bond Numbers 1954 $124,000.00 14,901 to 15,024 1955 124,000.00 15,025 to 15,148 1956 124,000.00 15,149 to 15,272 1957 124,000.00 15,273 to 15,396 1958 124,000.00 15,397 to 15,520 1959 124,000.00 15,521 to 15,644 1960 124,000.00 15,645 to 15,768 1961 124,000.00 15,769 to 15,892 1962 124,000.00 15,893 to 16,016 1963 124,000.00 16,017 to 16,140 1964 124,000.00 1A,141 to 16,264 1965 124,000.00 16,265 to 16,388 1966 124,000.00 16,389 to 16,512 1967 124,000.00 16,513 to 16,636 1968 124,000.00 16,637 to 16,760 1969 124,000.00 16,761 to 16,884 1970 124,000.00 16,885 to 17,008 1971 124,000.00 17,009 to 17,132 1972 124,000.00 17,133 to 17,256 1973 124,000.00 17,257 to 17,380 1974 124,000.00 17,381 to 17,5x4 1975 124,000.00 17,505 to 17,628 1976 124,000.00 17,629 to 17,752 1977 124,000.00 17,753 to 17,876 1978 124,000.00 17,877 to 18,000 The interest on each Bond shall be payable semi-annually on September lot and March lot of each year until the City's obligation with respect to the payment of the principal sum thereof shall be discharged. The Bonds shall be payable, with respect to both principal and interest, at the principal office of The Hanover Bank, in the Borough of Manhattan, City and State of New York, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts. The Bonds which mature subsequent to March 1, 1961, shall be redeemable prior to their respective maturities, as provided in Article II of this ordinance. Section 104. The Bonds numbered from fourteen thousand, nine hundred and one (14,901) to fifteen thousand, three hundred and ninety-six (15,396), inclusive, shall bear interest at the rate of four per centum (4%) per annum; the Bonds numbered from fifteen thousand, three hundred and ninety-seven (15,397) to fifteen thousand, eight hundred and ninety-two (15,892), inclusive, shall bear interest at the rate of two and one-half per centum (22-%) per annum; the Bonds numbered from fifteen thousand, eight hundred and ninety- three (15,893) to sixteen thousand, two hundred and sixty-four (16,264), inclusive, shall bear interest at the rate of two and one-quarter per centum (2 ) per annum; the Bonds numbered from sixteen thousand, two hundred and sixty-five (16,265) to seventeen thousand, one hundred and thirty-two (17,132), inclusive,- shall bear interest at the rate of two and one-half per centum (2W per annum; and the Bonds numbered from seventeen thousand, one hun- dred and thirty-three (17,133) to eighteen thousand (18,000), inclusive, shall bear interest at the rate of two and three-quarters per centum (2-3/4%) per annum. Section 105. The Bonds shall be payable to bearer, without privi- lege of registration. They shall be signed by the Mayor of the City and shall be attested by the City Secretary. The corporate seal of the City shall be affixed to or impressed upon each Bond. The interest coupons representing interest payable on the Bonds shall bear the facsimile sig- natures of the Mayor and City Secretary. Each successive holder of each Bond, and each successive holder of each of the coupons attached to the Bonds, is conclusively presumed to forego and renounce his equities in favor of subsequent holders for value without notice, and to agree that such Bond and each of such coupons may be negotiated by delivery by any person having possession thereof, howsoever such possession may have been acquired, and that any holder who shall have taken such Bond or any of such coupons from any person for value and without notice thereby has acquired absolute title thereto, free from any defenses enforceable against any prior holder and free from all equities and claims of ownership of any such prior holder. Section 106. The Bonds, the interest coupons to be attached to the Bonds, and the certificate of the Comptroller of Public Accounts of the State of Texas, and the 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 ordi- nance provided or permitted: (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 80 $1,000 $1,000 The City of Fort Worth (hereinafter called the City), a municipal corporation of the State of Texas, for value received, hereby promises to pay, solely from the revenues hereinafter referred to, to the bearer on March 1, 19 , the principal sum of ONE THOUSAND DOLLARS ($1,000), and to pay, solely from said revenues, interest on said principal sum from the date of this Bond, at the rate of per centum ( %) per annum, semi-annually on September 1 and March 1 of each year, until the City's obligation with respect to the payment of said principal sum shall be discharged. So much of said interest as shall be payable at or before the date of maturity of this Bond expressed herein will be paid only upon presentation and surrender of the annexed interest coupons as they severally mature, and so much of said interest as shall be payable after said date of maturity will be paid to the bearer of this Bond. Payment of the principal of and interest on this Bond will be made at the principal office of The Hanover Bank, in the Borough of Manhattan, City and State of New York, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts. This Bond is one of a duly authorized issue of coupon bonds of the City, known as its Water and Sewer Revenue Bonds, Series 80 (herein- after called the Bonds), limited to the aggregate principal amount of Three Million, One Hundred Thousand Dollars ($3,100,000.00), dated March 1, 1953, maturing serially on March 1 in various years, and numbered from 14,901 to 18,000, in the order of their maturity. The Bonds are issued or to be issued for the improvement, extension and enlargement of the City's Water System and the improvement, extension and enlargement of the City's Sewer System, and the Bonds are payable from the Net Revenues de- rived by the City from the operation of such Systems. The credit of the City is not pledged to the payment of the Bonds, and the holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. The Bonds are issued or to be issued from time to time under and pursuant to and equally and ratably secured by an ordinance entitled. "An ordinance providing for the issuance of revenue bonds of the City of Fort Worth in the aggregate principal amount of Three Million, One Hundred Thousand Dollars ($3,100,000.00), in addition to four installments aggregating Fourteen Million, Nine Hun- dred Thousand Dollars ($x14,900,000.00) of revenue bonds heretofore issued and sold out of an authorized issue of Eighteen Million Dollars ($1$,- 000,000.00), to finance the improvement, extension and enlargement of the City's Water and Sewer Systems; providing for the payment of such bonds solely from the revenues of such Systems; pledging a portion of such reve- nues to such payment; entering into certain covenants 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," adopted by the City Council of the City on February 1$ , 1953, to which ordinance reference is hereby made for a more specific description of the revenues charged with and pledged to the payment of the principal of and interest on the Bonds, and for a statement of the nature and extent of such security, of the rights of the bearers of the Bonds and of the an- nexed interest coupons with respect to such security, and of the agreements of the City with respect thereto, and for a statement of the conditions upon which obligations on a parity with this Bond may be issued. The Bonds payable subsequent to March 1, 1961, shall be redeemable prior to their respective maturities, at the option of the City, on March 1, 1961, or on March 1 of any year subsequent to 1961, 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 redemp- tion price shall be par and accrued interest to date of redemption, plus a premimfor each Bond redeemed, of the following respective amounts in the following respective years: 1961, $25.00; 1962, $22.50; 1963, $20.00; 1964, $17.50, 1965, $15.00; 1966, $12.50; 1967, $10.00; 1968, $7.50; 1969, $5.00; 1970, $2.50; and without premium if redeemed after 1970; and (3) at least thirty days prior to the date upon which such redemption is to be made, a notice of intention to make such redemption, describing the Bonds to be redeemed, must be published at least once in a newspaper printed in the English language and published and of general circulation in the City of Fort Worth, in the State of Texas, and must be published at least once in a financial Journal published in the Borough of Manhattan, in the City and State of New York. 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 subsequent holders for value with- out notice, and to agree that this Bond and each of the coupons hereto attached may be negotiated by delivery by any person having possession thereof, howsoever such possession may have been acquired, and that any holder who shall have taken this Bond or any of the coupons from any person for value and without notice thereby has acquired absolute title thereto, free from any defenses enforceable against any prior holder and free from all equities and claims of ownership of any such prior holder. This Bond is issued pursuant to the Constitution and statutes of the State of Texas, including particularly Articles 1111 to 1118, in- clusive, of the 1925 Revised Civil Statutes of Texas, as amended, and pur- suant to propositions authorizing the encumbering of the income derived by the City from the operation of the City's Water System and the City's Sever System to provide for the payment of the $18,000,000.00 principal amount of bonds (of which the $3,100,000.00 principal amount of Series 80 Bonds above described are a part), adopted by a majority of the resident, qualified electors of the City owning taxable property in the City, and who had duly rendered the same for taxation, voting at an election held for that purpose on January 25, 1949, and pursuant to the above mentioned ordinance. All acts, conditions and things required by the Constitution or statutes of the State of Texas to exist, be performed or happen prece- dent to or in the issuance of this Bond exist, have been performed and have happened; and the amount of this Bond, together with all other in- debtedness of the City, does not exceed any limit prescribed by the Consti- tution or statutes of said State. IN WITNESS WHEREOF, the City has caused this Bond to be signed by its Mayor and attested by its City Secretary, and has caused the seal of the City to be hereunto affixed or impressed hereon, and coupons for the interest payable prior to or at the maturity of this Bond, bearing the fac- simile signatures of said Mayor and City Secretary, to be attached hereto, all as of the first day of March, 1953. CITY OF FORT WORTH, TEXAS BY Mayor ATTEST: City cre (Form of coupons representing interest payable on or before March 1, 1961) The City of Fort Worth, Texas, will pay to bearer, solely from those certain revenues referred to in the Bond On the hereinafter mentioned, at the principal office of The Han- first day of over Bank, in the City of New York, New York, the sum of Sept., 19 March, Dollars ($ ), being N0. - $ interest then due on its Water and Sever Revenue Bond, SERIES 80 Series 80, dated March 1, 1953• The holder hereof shall BOND NO. never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. Mayor ATTEST: City Secretary (Form of coupons representing interest payable subsequent to March 1, 1961) Unless the Bond hereinafter mentioned shall have been called for previous redemption and payment thereof made or duly provided for, the City of Fort Worth, Texas, will pay On the first day of to bearer, solely from those certain revenues referred to Sept., 19 in the Bond hereinafter mentioned, at the principal office March, of The Hanover Bank, in the City of New York, New York, the N0. - $ sum of Dollars ($ ), SERIES 80 being interest then due on its Water and Sever Revenue Bond, BOND N0. Series 80, dated March 1, 1953• 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. OFF- ATTEST: City8ecretary (Fora 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 ef- fect that this bond has been examined by him as required by law, and that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas and the Charter of said City, and that it is a valid and binding special obligation of said City of Fort Worth, Texas, payable from the revenues pledged to its payment by and in the ordinance authorizing same, and said bond has this day been registered by me. WITNESS my hand and seal of office at Austin, Texas, this the day of , A. D. 19 Comptroller of Public ccoun s of the State of Texas (Form of City Attorney's Certificate) The within bond is hereby approved as to form and legality. City rney Section 107. After the Bonds have been executed by the Mayor and City Secretary in accordance with their terms, they shall be presented to the Attorney General of the State of Texas for examination and approval. After the Bonds have been approved by the Attorney General, they shall be registered by the Comptroller of Public Accounts of the State of Texas in the manner provided by law. The Bonds shall not be issued until they have been so approved and so registered. Section 108. The Mayor and City Secretary are hereby authorized to execute said Bonds and to impress thereon the corporate seal of the City. The City Treasurer is hereby authorized to deliver said Bonds to the purchaser or purchasers to whom they may be sold by the City Council upon receipt of the purchase price to be paid by such purchaser or pur- chasers. Section 109. In addition to the Bonds authorized by this ordi- nance, 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, extending or enlarging the Systems; (b) That at the time the Additional Bonds are issued, the City shall not be in default in malting any payment required by Section 404, 405 or 406 of this ordinance; (c) That the amount of the average annual Net Revenues of the Systems computed by dividing by two the Net Revenues for the two fiscal years immediately preceding the time of 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 herein- after defined) and the Additional Bonds about to be issued; and (d) That the principal of the Additional Bonds shall be made pay- able 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. Provided, however, that with the exception of Additional Bonds to be issued pursuant to the propositions set forth in the preamble of this ordinance, adopted by the qualified voters of the City at an elec- tion held on January 25, 1949, no Additional Bonds shall be issued unless and until the City shall have been authorized by law to issue them. All Bonds issued pursuant to said propositions, whether issued by virtue of this ordinance or by virtue of earlier or subsequent ordinances or reso- lutions, 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. REDFMPTION OF BONDS BEFORE MATURITY Section 201, The Bonds payable subsequent to larch 1, 1961, shall be redeemable prior to their respective maturities, at the option of the City, on March 1, 1961, or on March 1 of any year subsequent to 1961, 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 re- demption, plus a premium for each Bond redeemed, of the following respec- tive amounts in the following respective years: 1961, $25.00; 1962, $22.50; 1963, $20,00; 1964, $17.50; 1965, $15.00; 1966, $12.50; 1967, $10.00; 1968, $7.50; 1969, $5.00; 1970, $2.50; and without premium if redeemed after 1970; 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 redemp- tion, describing the Bonds to be redeemed, must be published at least once in a newspaper printed in the English language and published and of general circulation in the City of Fort Worth, in the State of Texas, and must be published at least once in a financial Journal published in the Borough of Manhattan, in the City and State of New York. Such option may be exer- cised by ordinance or resolution duly adopted by the City Council of the City. Section 202. Nothing contained in this ordinance shall be con- strued to limit or affect the right of the City to purchase, with any moneys lawfully available for such purpose, any of the outstanding Bonds at a price less than the redemption price hereinbefore prescribed. Section 203. Notice having been given by publication in the manner provided in Section 201, the Bonds called for redFmption shall become due and payable on the redemption date designated in the notice at the redemp- tion 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 aforesaid. All interest in- stallments represented by coupons which shall have matured on or prior to the redemption date shall continue to be payable to the bearers of such coupons. Interest on any Bonds to be redeemed shall cease to accrue from and after the redemption date specified in such notice unless the City defaults in the payment of the redemption price thereof. Section 204. All Bonds redeemed prior to maturity under the pro- visions of this ordinance, together with the unmatit red coupons, if any, shall be cancelled and incinerated by the City Treasurer forthwith, and a certificate showing the destruction of such Bonds or coupons shall be filed in the office of the City Treasurer. ARTICLE III. APPLICATION OF PROCEEDS OF BONDS Section 301. All moneys received by the City in payment for the Bonds, exclusive of accrued interest, shall be, credited to a special fund, which is hereby created and which shall be 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 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 pro- vided. Section 302. From the moneys credited to the Construction Fund the City shall apply the sum of $1,800,000.00 to the payment of the cost of improving, extending and enlarging the City Water System and the sum of $1,300,000.00 to the payment of the cost of improving, extending and enlarging the City Sewer System. Section 303. The amount received by the City from the purchasers of the Bonds as accrued interest, if any, shall be paid by the City into the Current Account of the Debt Service Fund hereinafter described. ARTICLE IV. APPLICATION OF REVENUES Section 401. Where used in this ordinance (1) the term "Systems" shall be deemed to include all properties of every nature owned or used by the City and used or useful in the operation of the City Water System or the City Sewer System, including real estate, personal and intangible properties, whether lying within or without the boundaries of the City, and shall include all improvements, additions and extensions which may hereafter be mads 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 exten- sions 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 Sys- tems and the Revenues thereof; (3) the term "Revenues" shall mean the gross revenue and income derived by the City from the operation of the Systems; (4) the term "Net Revenues" shall mean the amount by which the aggregate of the Revenues received by the City in any year shall exceed the amount required to pay the Operating Expenses of such year; (5) the term "Issued Bonds" shall mean the $2,000,000.00 Water and Sewer Revenue Bonds dated March 1, 1949, issued pursuant to the ordinance entitled "An ordinance providing for the issuance of revenue bonds of the City of Fort Worth in the aggregate principal amount of Two Million Dollars ($2,000,- 000.00) to finance the improvement, extension and enlargement of the City's Water and Sewer Systems; providing for the payment of such bonds solely from the revenues of such Systems; pledging a portion of such revenues to such payment; entering into certain covenants and agreements with respect to the operation of such Systems and the application of the revenues de- rived therefrom; and repealing all ordinances in conflict herewith," adopted by the City Council on April 20, 1949, the $2,650,000.00 Water and Sewer Revenue Bonds dated September 1, 1949, issued pursuant to the ordinance entitled "An ordinance providing for the issuance of revenue bonds of the City of Fort Worth in the aggregate principal amount of Two Million, Six Hundred and Fifty Thousand Dollars ($2,650,000.00), in addi- tion to an installment of Two Million Dollars ($2,000,000.00) of revenue bonds heretofore issued and sold out of an authorized issue of Eighteen Million Dollars ($18,000,000.00), to finance the improvement, extension and enlargement of the City's Water and Sewer Systems; providing for the payment of such bonds solely from the revenues of such Systems; pledging a portion of such revenues to such payment; entering into certain cove- nants and agreements with respect to the operation of such Systems and the application of the revenues derived therefrom; and repealing all ordinances in conflict herewith," adopted by the City Council on September 14, 1949, the $6,000,000.00 Water and Sewer Revenue Bonds dated March 1, 1951, is- sued pursuant to the ordinance entitled "An ordinance providing for the issuance of revenue bonds of the City of Fort Worth in the aggregate prin- cipal amount of Six Million Dollars ($6,000,000.00), in addition to two installments aggregating Four Million, Six Hundred and Fifty Thousand Dol- lars ($4,650,000.00) of revenue bonds heretofore issued and sold out of an authorized issue of Eighteen Million Dollars ($18,000,000.00), to finance the improvement, extension and enlargement of the City's Water and Sewer Systems; providing for the payment of such bonds solely from the revenues of such Systems; pledging a portion of such revenues to such payment; en- tering 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," adopted by the City Council on February 28, 1951, which ordinance was emended on March 7, 1951, and the $4,250,000.00 Water and Sever Revenue Bonds dated March 1, 1952, is- sued pursuant to the ordinance entitled "An ordinance providing for the issuance of revenue bonds of the City of Fort Worth in the aggregate principal amount of Four Million, Two Hundred and Fifty Thousand Dollars ($4,250,000-00), in addition to three installments aggregating Ten Million, Six Hundred and Fifty Thousand Dollars ($10,650,000.00) of revenue bonds heretofore issued and sold out of an authorized issue of Eighteen Million Dollars ($18,000,000.00), to finance the improvement, extension and enlarge- ment of the City's Water and Sever Systems; providing for the payment of 0 such bonds solely from the revenues of such Systems; pledging a portion of such revenues to such payment; entering into certain covenants and agree- ments with respect to the operation of such Systems and the application of the revenues derived therefrom; and repealing all ordinances in conflict herewith," adopted by the City Council on February 27, 1952; and (6) the term "First Issue Bond Ordinance" shall mean the ordinance adopted by the City Council on April 20, 1949. Section 402. All Revenues (as defined in Section 401 of this or- dinance) received or collected by the City or any of its officers or agen- cies 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 Sever 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 pro- vided 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 in- to the Operating Fund are hereby pledged to secure the payment of the principal of, the redemption premium, if any, and interest on the Bonds (including Issued Bonds and Additional Bonds issued in accordance with Section 109 of this ordinance), and this pledge shall be valid and bind- ing from and after the earliest date (hereinafter referred to as the Issu- ance Date) upon which any Bonds are issued pursuant to this ordinance, Revenues, as received by the City, shall 1— diately 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 par- ties 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 Sever Debt Service Fund" (hereinafter referred to as "Debt Service Fund") es- tablished by the First Issue Bond Ordinance shall be continued and main- tained, and such Special Fund shall be divided into a "Current Account" and a "Reserve Account" as provided in the First Issue Bond Ordinance. All moneys paid into.such-accounts as hereinafter provided and as provided in the First Issue Bond Ordinance shall be deposited in one or more de- positaries of the City as a Special Fund and shall be kept separate from all other moneys of the City. (2) On or before the last day of the first month ending subsequent to the Issuance Date, and on or before the fifteenth day of each month thereafter., the City shall, out of the moneys remaining in the Operating Fund after payment of Operating Expenses then due and payable, pay (a) Into the Current Account of the Debt Service Fund: (1) An amount equal to one-sixth (1/6) of the interest payable on the Bonds (including Issued Bonds and Additional Bonds) then outstanding on the interest payment date next ensuing, less the amount, if any, re- ceived as accrued interest from the pur- chasers of the Bonds and deposited to the credit of the Current Account and avail- able for the purpose of paying said inter- est; and (2) An amount equal to one-twelfth (112) of the principal of the Bonds (including Is- sued Bonds and Additional Bonds) then out- standing that will mature on the March first next ensuing; and (b) Into the Reserve Account of the Debt Service Fund: An amount equal to twenty per cent (20%) of said payments into the Current Account; provided, however, that whenever and for so long as the amount in the Reserve Account shall be as much as the aggregate amount of principal and interest that will become due and payable in the twelve months' period beginning on the March 2 next ensuing on the Bonds (including Issued Bonds and Additional Bonds) then outstanding, no payment need be made into the Reserve Account; and provided, further, that no greater payment need be made into the Reserve Account than shall be neces- sary to make the amount in the Reserve Ac- count -equal to said aggregate amount of prin- cipal 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 before said day, out of moneys remaining in the Operating Fund after the payment of Operating Expenses then due and payable, an amount equal to the amounts, if any, which would have been theretofore paid, pursuant to said foregoing provisions, into the Current Account with respect to said Bonds or Additional Bonds (a) on account of interest, if said Bonds or Additional Bonds had been delivered six months before the interest 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 Ac- count or the Reserve Account of the Debt Service Fund, and actually avail- able for the purpose of paying the principal of or interest on the Bonds or the Issued Bonds or the Additional Bonds, shall at any time be less than the total amount required by the foregoing provisions of this section to be paid into such account up to such time, after deducting, in the case of the Current Account, moneys previously applied to, or set aside and held by the City for, the payment of matured Bonds or Issued Bonds or Additional Bonds and matured coupons appurtenant to Bonds or the Issued Bonds or Ad- ditional 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 spycial account in the Operating Fund known as the "Operation Reserve Account" created by the First Issue Bond Ordinance shall be continued and maintained. The City Council has ascertained and hereby determines that moneys amounting in the aggregate to $377,452.80 have been set aside in accordance with the provisions of the First Issue Bond Ordinance and are now held in said account and that said sum is more than twenty-five percentum of the total amount of the Operating Expenses of the Systems for the twelve months' period ending on September 30, 1952• In the event that the moneys held in said account shall hereafter be less than twenty-five percentum of the total amount of the Operating Expenses of the Systems for any twelve months' period ending on the next preceding September 30th, the City shall, on or before the last days of December, March, June and September in each year, after making the payments for Operating Expenses required by Section 404 and the payments into the Cur- rent Account and Reserve Account of the Debt Service Fund required by Sec- tion 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 gx- penses of the Systems for the twelve months' period ending on the next pre- ceding 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 payments into the Operati,on___ Reserve Account required by this section, may be used by the City for any lawful purpose. Section 407. Moneys in the Current Account of the Debt Service Fund shall be used by the City for the purpose of paying or making provision ' for paying the principal of and interest on the Bonds or Issued Bonds or Additional Bonds as such principal and interest fall due. Moneys in the Reserve Account of the Debt Service Fund shall also be used by the City for said purpose whenever and to the extent that the moneys in the Current Ac- 'daunt shall be insufficient for said purpose. All moneys in the Debt Service Fund shall be held by the City in trust, and they are hereby pledged to and charged with the payments mentioned in this section. Section 408. Moneys on deposit to the credit of the Reserve Account of the Debt Service Fund or the Operation Reserve Account of the Operating Fund may, in the discretion of the City Council of the City, be invested in direct obligations of, or obligations the principal and interest of which are unconditionally guaranteed by, the United States Government. Obliga. tions 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 in. terest accruing thereon and any profit realized from such investment shall be credited to such account, and any loss resulting from such investment shall be charged to such account. The City shall sell at the best price obtainable any obligations so purchased whenever it may be necessary so to do in order to provide moneys to meet any payment or transfer from such account. ARTICLE V. PARTICULAR COVENANTS OF THE CITY Section 501. The City covenants and agrees that it will duly and punctually pay, or cause to be paid, the principal of all Bonds issued under this ordinance and the interest thereon, on the dates, at the place and in the manner set forth in such Bonds and in the coupons thereto ap- pertaining, and that it will faithfully do and perform and at all times fully observe any and all covenants, undertakings, stipulations and pro- visions contained herein or in the Bonds at any time outstanding hereunder. Except as in this ordinance otherwise provided, such principal and inter- est are payable solely from the Revenues derived from the Systems, which Revenues are hereby pledged to the payment thereof in the manner and to the extent hereinabove particularly specified, and nothing in the Bonds or coupons or in this ordinance shall be construed as pledging the credit of the City or as obligating the City, directly or indirectly, or contin- gently, to levy a tax therefor. Section 502. The City covenants that it will at all times main- tain the Systems in good working order and condition and will continuously operate the same, and Brill, 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 fur- nished by the Systems, so that the Revenues derived therefrom will at all times be sufficient to provide funds for paying Operating Expenses as they become due and payable and for making the payments required by Sec- tion 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 Sys- tems. 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 belonging to the Systems as are customarily insured, and against loss or damage from such causes as are customarily insured against, by companies engaged in the operation of water or sewer systems. The proceeds of any and all such insurance shall, to the extent necessary, be applied to the repair and replacement of the damaged property. Section 505. The City covenants that, so long as the Bonds or any of them shall be outstanding and except as in this ordinance otherwise expressly permitted, it will not sell, lease or otherwise dispose of or encumber Ithe Systems or any part thereof, and will not create or permit to be created any charge or lien on the Revenues of the Systems ranking equally with or prior to the charge or lien on such Revenues of the Bonds issued under and secured by this ordinance. The City may, however, from time to time, sell any machinery, fixtures, apparatus, tools, instruments or other movable property acquired by it in connection with the Systems, or any materials used in connection therewith, if the City shall by reso- lution 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 determine is not needed or serves no useful purpose in connection with the maintenance and operation of the Systems. The pro- ceeds of any such sale shall be deposited to the credit of the Debt Service Fund, and the rentals from any such lease shall be deposited to the credit of the Operating Fund. Section 506. So far as it legally may, the City covenants and agrees that, so long as the Bonds or any of them are outstanding, it will not grant a franchise for the operation of any competing water system or sewer system. Section 507. The City covenants and agrees that, so long as the Bonds or any of them are outstanding, the rates charged for services fur- nished by'the Systems shall be equal and uniform, and no free service shall be allowed except for City public schools or buildings and institu- tions operated by the City. Section 508. The City covenants and agrees that, so long as the Bonds or any of them are outstanding, it will not issue Additional Bonds, payable from the Debt Service Fund, except in the manner and subject to the limitations prescribed by Section 109 of this ordinance. Section 509. Nothing contained in this ordinance shall be con- strued 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 Sys- tems. Such books shall be open to the inspection of all interested per- sons. The City further covenants that not later than three months after the close of each fiscal year, the City will cause to be prepared a state- ment, certified by a competent and independent certified public accountant, showing in reasonable detail the revenues and expenses of the Systems dur- ing such fiscal year, the assets and liabilities of the Systems at the be- ginning 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 folly informed as to all matters pertaining to the financial operation and condition of the Systems during such fiscal year. The City further covenants that it will cause a copy of such statement to be mailed to each of the original pur- chasers of the Bonds or the Additional Bonds and also to each holder of any of the Bonds or the Additional Bonds who shall have requested it. Section 511. The City covenants that, so long as the Bonds or any of them shall be outstanding, all deposits of money held in either the Construction Fund or the Debt Service Fund or the Operating Fund (other than money invested as hereinbefore provided) shall be adequately secured by United States Government bonds or other marketable securities eligible as security for the deposit of trust funds under regulations of the Board of Governors of the Federal Reserve System, or by indemnity bonds of indemnity companies qualified as security for United States Gov- ernment deposits, or as may be required by the applicable lava of the State of Texas. ARTICLE VI. MISCELLANEOUS PROVISIONS Section 601. If a coupon appertaining to any of the Bonds shall in any way, before, at or after maturity, be transferred or pledged sepa- rate and apart from the Bond to which it appertains, such coupon shall not, unless acccmpanied by such Bond, be entitled, in case of default hereunder, to any benefit of or from this ordinance, except after prior payment in full of the principal of all Bonds and of all coupons not so transferred or pledged. If the time for the payment of any coupon apper- taining to any of the Bonds shall be directly or indirectly extended, or the extension thereof shall be assented to by the City, or the City shall be a party to or approve of any arrangement for such extension by purchas- ing such coupons or in any other manner, then, anything in this ordinance contained to the contrary notwithstanding, such coupon so extended shall not be entitled, in case of default hereunder, to any benefit of or from this ordinance, except after prior payment in full of all Bonds outstand- ing hereunder and of all such coupons as shall not have been so extended. Section 602. In consideration of the purchase and acceptance of the Bonds authorized to be issued hereunder by those who shall hold the same from time to time, this ordinance shall be deemed to be and shall constitute a contract between the City and the holders from time to time of such Bonds; and the covenants and agreements herein set forth to be performed on behalf of the City shall be for the equal benefit, protec- tion 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 603. Except as herein otherwise expressly provided, nothing in this ordinance is intended or shall be construed to confer upon any person, firm or corporation, other than the holders of the Bonds, any right, remedy or claim, legal or equitable, under or by reason of this ordinance, or any covenant, condition or stipulation herein, this ordinance and all of its covenants, conditions and stipulations being in- tended to be for the sole and exclusive benefit of the holders from time to time of the Bonds. Section 604. In the event that any one or more of the provisions of this ordinance stall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this ordinance, and this ordinance and the Bonds issued pursuant thereto shall be construed and enforced as if such illegal or invalid provision or provisions had not been contained in this ordinance. Section 605. All ordinances and resolutions in conflict herewith are hereby repealed in so far as they conflict here`rith. Section 606. This ordinance shall take effect and be in full force . and effect from and after the date of its passage. Mayor of the City of Fort Worth, Texas ATTEST: City Secretary of the City- of Fort Worth, Texas APPROVED AS TO FORM AND LEGALITY: City Attorney of the City of Fort Worth, Texas the 7th day of March, 1951, did authorize the issuance of Six Million Dol- lars ($6,000,000.00) of Water and Sewer Revenue Bonds combined in one is- sue, said bonds being numbered from forty-six hundred and fifty-one (4,651) to ten thousand, six hundred and fifty (10,650), both inclusive; and the said City Council, by ordinance duly adopted on the 27th day of February, 1952, did authorize the issuance of Four Million, Two Hundred and Fifty Thousand Dollars ($4,250,000.00) of Water and Sewer Revenue Bonds combined in one issue, said bonds being numbered from ten thousand, six hundred and fifty-one (10,651) to fourteen thousand, nine hundred (1$,900), both in- clusive; and it was provided in all of the ordinances authorizing the is- suance of said bonds that the City of Fort Worth might issue additional bonds payable from the Debt Service Fund created by the first ordinance and secured, equally and ratably with the bonds authorized by said ordi- nances, by a pledge of the Revenues of the Systems, conditioned, however, that the additional bonds shall be issued for the purpose of improving, extending or enlarging the Systems; that at the time the additional bonds are issued, the City shall not be in default in making any payment re- quired by any provisions of said ordinances; that the amount of the average annual Net Revenues of the Systems computed by dividing by two the Net Revenues for the two fiscal years immediately preceding the time of is- suance of the additional bonds shall be not less than 150% of the maximum, aggregate amount of principal and interest payable in any future fiscal year with respect to the bonds and additional bonds then outstanding and the additional bonds about to be issued; and that the principal of the additional bonds shall be made payable on March 1st of the years in which such principal is payable, and the interest on the additional bonds shall be made payable semi-annually on September lst and March 1st; and, WHEREAS, the City Council has found and determined that the reve- nue bonds now proposed to be issued shall be for the purpose of improv- ing, extending or enlarging such City Water and Sewer Systems; that the City is not now, and has not been, in default in the payment of any sum