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HomeMy WebLinkAboutOrdinance 6627 ORDINANCE NO. AN ORDINANCE PROVIDING FOR THE ISSUANCE OF REVE- NUE BONDS OF THE CITY OF FORT WORTH IN THE AG- GREGATE PRINCIPAL AMOUNT OF SIX MILLION, THREE HUNDRED AND FIFTY THOUSAND DOLLARS ($6, 350, 000.00) TO FINANCE THE IMPROVEMENT AND EXTENSION OF THE CITY'S WATER SYSTEM; PROVIDING FOR THE PAYMENT OF SUCH BONDS SOLELY FROM THE REVENUES OF THE CITY'S WATER AND SEWER SYSTEMS; PLEDGING A POR- TION OF SUCH REVENUES TO SUCH PAYMENT; ENTERING INTO CERTAIN COVENANTS AND AGREEMENTS WITH RESPECT TO THE OPERATION OF SUCH SYSTEMS AND THE APPLICATION OF THE REVENUES DERIVED THERE- FROM; AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH. WHEREAS, the City of Fort Worth (hereinafter referred to as City) has established, and for many years has main- tained 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 c=ollection, treat- ment and disposal of sewage and waste; and, WHEREAS, at elections duly called and held in the City on January 25, 1949, January 26, 1954, January 31, 1956, and October 19, 1965, a majority of the qualified voters of the City voted in favor of propositions authorizing the is- suance of Water and Sewer Revenue Bonds; and, WHEREAS, the City has heretofore issued all of the bonds authorized by propositions submitted at the elections held on January 25, 1949, January 26, 1954, and January 31, 1956, said bonds in the aggregate principal amount of Fifty- one Million Dollars ($51,000, 000.00) having been issued pur- suant to ordinances duly passed by the City Council of said City, the first of said ordinances passed on April 20, 1949, being hereinafter referred to as the "First Issue Bond Ordinance"; and, WHEREAS, pursuant to ordinances heretofore duly passed, the City has issued Water and Sewer Revenue Bonds in the principal amount of Eleven Million, Six Hundred Thousand Dollars ($11,600, 000.00) out of the Twenty-three Million, Nine Hundred and Fifty Thousand Dollar ($23, 950,- 000.00) issue which was authorized by the proposition sub- mitted at the election held on October 19, 1965; and, WHEREAS, it was provided in Section 109 of the First Issue Bond Ordinance passed April 20, 1949, that the City of Fort Worth might issue additional bonds payable from the Debt Service Fund created by said ordinance, which bonds, when issued, would be secured equally and ratably with the bonds authorized by said ordinance of 1949; and, WHEREAS, the conditions prescribed in Section 109 of said ordinance of 1949 have been fulfilled and exist so that the City now has authority under said section to issue the additional bonds herein authorized; and, WHEREAS, it is deemed wise and expedient by the City Council of said City, in the exercise of the discretion re- posed in it by law, that Six Million, Three Hundred and Fifty Thousand Dollars ($6, 350,000.00) of the bonds authorized by the proposition submitted at said election held on October 19, 1965, be issued, in addition to the bonds heretofore issued and sold, for the purpose of making permanent city improve- ments by improving and extending the Waterworks System of said City, and that said bonds shall be issued as,- provided by this ordinance; and, WHEREAS, the following terms, where used in this ordinance, unless the context shall indicate another or dif- ferent meaning or intention, are to be construed and used and are intended to have meanings as follows: (1) "City Water System" and "City Sewer System" mean the systems described in the first paragraph of this ordinance. (2) "Bonds` shall mean the bonds described in Section 101 of this ordinance. (3) "Additional Bonds" shall mean the bonds hereafter issued as provided in Section 109 of this ordinance. (4) "Issued Bonds" shall mean the Issued Bonds described in Section 401 of this ordi- nance. (5) "Operating Expenses" shall mean Operating Expenses as defined in Section 401 of this ordi- nance. (6) "Revenues" and "Net Revenues" shall mean, respectively, Revenues and Net Revenues as de- fined in Section 401 of this ordinance. (7) "First Issue Bond Ordinance" shall mean the ordinance hereinbefore described, adopted by the City Council on April 20, 1949. (8) "Operating Fund" shall mean the fund de- scribed in Section 402 of this ordinance. (9) "Debt Service Fund" and "Current Account" and "Reserve Account" shall mean the Debt Service Fund, the Current Account and the Reserve Ac- count described in Section 405 of this ordinance. (10) "Operation Reserve Account" shall mean the Operation Reserve Account described in Section 406 of this ordinance. (11) "Issuance Date" shall mean the first day on which any of the Bonds are delivered. (12) "Year" or "Fiscal Year" shall mean the yearly period beginning October 1 in each year. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: ARTICLE I. AUTHORIZATION AND DESCRIPTION OF BONDS Section 101. Bonds of the City shall be issued in the aggregate principal amount of Six Million, Three Hun- dred and Fifty Thousand Dollars ($6, 350,000.00) for the pur- pose of making permanent city improvements by improving and extending the Waterworks System of said City. All of such bonds (hereinafter referred to as the Bonds) shall constitute a single issue to be known as Water and Sewer Revenue Bonds, Series 109. The Bonds shall be payable solely from the Net Revenues of the City's Water and Sewer Systems, as defined in Section 401 of this ordinance. The holder or holders of the Bonds shall never have the right to demand payment thereof out of any funds raised or to be raised by taxation. Section 102 . The Bonds are hereby authorized and shall be issued pursuant to the Constitution and Statutes of the State of Texas, including particularly Articles 1111 to 1118, inclusive, of the 1925 Revised Civil Statutes of Texas, as amended, and pursuant to Acts 1969 of the 61st Legislature. Section 103. The Bonds shall be one thousand, two hundred and seventy (1,270) in number, numbered from two thousand, three hundred and twenty-one (2, 321) to three thousand, five hundred and ninety (3, 590) , both inclusive, and of the denomination of Five Thousand Dollars ($5, 000.00) each, shall be dated March 1, 1972, and shall mature serially on March lst of each year, as follows: Year Amount 1973 $250, 000.00 1974 250,000.00 1975 250,000.00 1976 250, 000.00 1977 250, 000.00 1978 255, 000.00 1979 255,000.00 1980 255, 000.00 1981 255, 000.00 1982 255, 000.00 1983 255, 000.00 1984 255,000.00 1985 255, 000.00 1986 255,000.00 1987 255, 000.00 1988 255,000.00 1989 255,000.00 1990 255,000.00 1991 255, 000.00 1992 255,000.00 1993 255,000.00 1994 255, 000.00 1995 255, 000.00 1996 255,000.00 1997 255, 000.00 The Bonds shall be payable, with respect to both principal and interest, at the principal office of the Manufacturers Hanover Trust Company, in the Borough of Manhattan, City and State of New York, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts. Section 104. The Bonds shall bear interest from March 1, 1972, at the rates as follows: Bonds maturing 1973 to 1983, both incl., 5 .50/ per annum; Bonds maturing 1984 5.40% per annum; Bonds maturing 1985 4.50% per annum; Bonds maturing 1986 4.60% per annum; Bonds maturing 1987 4.70/ per annum; Bonds maturing 1988 to 1989, both incl. , 4.80/ per annum; Bonds maturing 1990 to 1992, both incl. , 4. 90/ per annum; Bonds maturing 1993 to 1994, both incl. , 5.00/ per annum; and Bonds maturing 1995 to 1997, both incl. , 3.50% per annum,r payable September 1, 1972, and semi-annually thereafter on March lst and September lst of each year until the princi- pal amount thereof shall be paid. Section 105. The Bonds shall be payable to bearer, without privilege of registration. Each of the Bonds shall be signed by the facsimile signature of the Mayor, approved as to form and legality by the facsimile signature of the City Attorney and attested manually by the City Secretary, and the corporate seal of the City of Fort Worth, Texas, shall be affixed to, printed, lithographed or impressed upon each of them. The facsimile signatures of the Mayor and City Secretary shall be lithographed or printed upon the cou- pons attached to said Bonds, and such facsimile signatures shall have the same effect as if manually placed on said Bonds and coupons. Each successive holder of each Bond, and each successive holder of each of the coupons attached to the Bonds, is conclusively presumed to forego and renounce his equities in favor of subsequent holders for value with- out notice, and to agree that such Bond and each of such cou- pons may be negotiated by delivery by any person having pos- session 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 defense 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 ordinance provided or permitted: Section 107. The Bonds herein authorized shall be presented to the Attorney General of the State of Texas for examination and approval and to the Comptroller of Public Accounts for registration. Upon registration of said Bonds, the Comptroller of Public Accounts (or a deputy designated in writing to act for the Comptroller) shall manually sign the Comptroller ' s certificate of registration prescribed herein to be printed on the back of each Bond, and the seal of the Comptroller shall be impressed, or printed, or litho- graphed on each of said Bonds. Section 108. The Mayor and City Secretary are hereby authorized to execute said Bonds and to affix, impress, print or lithograph thereon the corporate seal of the City. The City Treasurer is hereby authorized to deliver said Bonds to the purchaser or purchasers to Whom they may be sold by the City Council upon receipt of the purchase price to be paid by such purchaser or purchasers. Section 109. In addition to the Bonds authorized by this ordinance, the City may issue bonds (hereinafter re- ferred to as Additional Bonds) payable from the Debt Service Fund hereinafter referred to and secured, equally and rata- bly with the Bonds authorized by this ordinance, by a pledge of the Revenues of the Systems, but only upon the following conditions: (a) That the Additional Bonds shall be issued for the purpose of improving or extending the Systems; (b) That at the time the Additional Bonds are issued, the City shall not be in default in making any payment required by Section 404, 405 or 406 of this ordi- nance; (c) That the amount of the average annual Net Reve- nues of the Systems computed by dividing by two the Net Revenues for the two fiscal years immediately preceding the time of issuance of the Additional Bonds shall be not less than 150% of the maximum aggregate amount of principal and interest payable in any future fiscal year with respect to the Bonds and Additional Bonds then outstanding (including Issued Bonds as hereinafter defined) and the Additional Bonds about to be issued; and (d) That the principal of the Additional Bonds shall be made payable on March 1 of the years in which such principal is payable, and that the interest on the Addi- tional Bonds shall be made payable semi-annually on Septem- ber 1 and March 1. All Bonds issued in accordance with the provisions of this Section 109, 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 of this ordinance or by virtue of earlier or subsequent ordi- nances or resolutions, and whether issued at one time or from time to time, shall be deemed and treated as a single issue of bonds and as representing parts of the same indebtedness, within the meaning of Article 1113 of the 1925 Revised Stat- utes of Texas, as amended. ARTICLE II. REDEMPTION OF BONDS BEFORE MATURITY Section 201. The Bonds payable subsequent to March 1, 1987, shall be redeemable prior to their respective maturi- ties, at the option of the City, on March 1, 1987, or on any interest payment date subsequent to March 1, 1987, upon the following terms and conditions, viz. : (1) The Bonds called for redemption on any March 1 must include all of the Bonds then outstanding or must be the outstanding Bonds bearing the highest identifying numbers; (2) the redemption price shall be par and accrued interest to date of redemption; and (3) at least thirty days prior to the date upon which such redemption is to be made, a notice of intention to make such redemption, describing the Bonds to be redeemed, must be published at least once in a financial journal of national circulation published in the Borough of Manhattan, in the City and State of New York. Such option may be exercised by ordinance or resolution duly adopted by the City Council of the City. Section 202 . Nothing :contained in this ordinance shall be construed to limit or affect the right of the City to purchase, with any moneys lawfully available for such pur- pose, any of the outstanding Bonds at a price less than the redemption price hereinbefore prescribed. Section 203. Notice having been given by publication in the manner provided in Section 201, the Bonds called for redemption shall become due and payable on the redemption date designated in the notice at the redemption price de- termined, as provided in Section".201, and upon presentation and surrender- .thereof_at the= place_'of. pa�eht thereof, to- gether with- all_:dppurt6hant, coupons=:maturing-subsequent to the;:.redem1 tion-date - P ,_= such Bonds --shall -be shall -be paid� at the-"-re- - demption price aforesaid.. All interest- ristailments -repre- stinted_---by.- coupons .:which shall-have matured=on--or--prior.-to the._redemption' date:-shall continue to be payable to the-: --. bearers of;,such, coupons. . =-Interest on-any Bonds to-':be' re- - deemed---shall cease .to accrue from and --after-,the -redemption . date__specified .in _such-_notice :unless the City. defaults_=in. "= the,payment- of-Ithe_.redemption--price thereof:.` .- 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 prop- erties, whether lying within or without the boundaries of the City, and shall include all improvements, additions and extensions which may hereafter be made to said properties or Systems; (2) the term "Operating Expenses" shall mean the reasonable and proper expenses of operating and maintaining the Systems, including, without limiting the generality of the foregoing, expenditures for salaries, labor, materials, interest, repairs and extensions necessary to enable the Sys- tems 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 aggre- gate 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 Sixty- two Million, Six Hundred Thousand Dollars ($62,600,000.00) Water and Sewer Revenue Bonds which have been heretofore issued pursuant to the authority given by the propositions adopted at said elections held in the City on January 25, 1949, January 26, 1954, January 31, 1956, and October 19, 1965, and pursuant to the ordinances referred to in the preamble of this ordinance; and (6) the term "First Issue Bond Ordinance" shall mean the ordinance adopted by the City Council on April 20, 1949. Section 402 .. All Revenues (as defined in Section 401 of this ordinance) received or collected by the City or any of its officers or agencies shall be deposited by the City Treasurer, as promptly as possible after their receipt, in a bank or banks authorized to act as depositary or depos- itaries of the City, and shall be held by such bank or banks in a special fund or account to be known as the "Water and Sewer Operating Fund" (hereinafter referred to as the Operat- ing Fund) , established by the First Issue Bond Ordinance. Section 403. Subject only (1) to the right of the City to pay from the Operating Fund moneys required for Operating Expenses as provided in Section 404 of this ordi- nance and (2) to the right of the City to expend moneys in the Operating Fund in accordance with Section 406 of this ordinance, all moneys paid or required by Section: 402 to be paid into the Operating Fund are hereby pledged to secure the payment of the principal of, the redemption premium, if any, and interest on the Bonds (including Issued Bonds and Additional Bonds issued in accordance with Section 109 of this ordinance) , and this pledge shall be valid and bind- ing from and after the earliest date (hereinafter referred to as the Issuance Date) upon which any bonds are issued pursuant to this ordinance. Revenues, as received by the City, shall immediately be subject to the lien of this pledge without any physical delivery thereof or further act, and the lien of this pledge shall be valid and binding as against all parties 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 Ordi- nance. 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 depositaries of the City as a Special Fund and shall be kept separate from all other moneys of the City. (2) On or before the last day of the first month ending subsequent to the Issuance Date, and on or before the fifteenth day of each month thereafter, the City shall, out of the moneys remaining in the Operating Fund after payment of Operating Expenses then due and payable, pay (a) Into the Current Account of the Debt Service Fund: (1) An amount equal to one-sixth (1/6) of the interest payable on the Bonds (including Issued Bonds and Additional Bonds) then outstanding on the interest payment date next ensuing, less the- amount, heamount, if any, received as accrued in- terest from the purchasers of the Bonds and deposited to the credit of the Cur- rent Account and available for the pur- pose of paying said interest; and (2) An amount equal to one-twelfth (1/12) of the principal of the Bonds (including Issued Bonds and Additional Bonds) then outstanding that will mature on the March first next ensuing; and (b) Into the Reserve Account of the Debt Service Fund: An amount equal to twenty per cent (20%) of said payments into the Current Account; provided, however, that whenever and for so long as the amount in the Reserve Ac- count shall be as much as the aggregate amount of principal and interest that will become due and payable in the twelve months ' period beginning on the March 2 next ensuing on the Bonds (including Is- sued Bonds and Additional Bonds) then out- standing, no payment need be made into the Reserve Account; and provided, further, that no greater payment need be made into the Reserve Account than shall be neces- sary to make the amount in the Reserve Account equal to said aggregate amount �s of principal and interest. \` (3) In addition to the amount required by the foregoing provisions of this section to be paid into the Current Account of the Debt Service Fund on or before the last day of the month in which any Bonds or Additional Bonds are delivered, the City shall pay into said account, on or before said day, out of moneys remaining in the Operating Fund after the payment of Operating Expenses then due and payable, an amount equal to the amounts, if any, which would have been theretofore paid, pursuant to said forego- ing 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 pay- ment date next ensuing. (4) If for any reason the moneys in the Current Account or the Reserve Account of the Debt Service Fund, and actually available for the purpose of pay- ing the principal of or interest on the Bonds or the 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 Additional Bonds, the amount of the deficiency shall be added to the amount otherwise required to be paid from the Operating Fund into such deficient account in each month thereafter until all such deficiencies shall have been made up. (5) Whenever and for so long as the moneys in the Debt Service Fund are at least equal to the aggregate principal amount of the Bonds and Issued Bonds and Additional Bonds issued and unpaid, plus the amount of interest then due and thereafter to become due on the Bonds and Issued Bonds and Additional Bonds issued and un- paid, no further payment need be made into the Debt Service Fund. Section 406. The special account in the Operating Fund known as the "Operation Reserve Account" created by the First Issue Bond Ordinance shall be continued and main- tained. The City Council has ascertained and hereby de- termines that cash and investments amounting in the aggre- gate to $1,831, 070.00 have been set aside in accordance with the provisions of the First Issue Bond Ordinance and are now held in said account and that said sum is more than twenty-five percentum of the total amount of the Operating Expenses of the System for the twelve months ' period ending on September 30, 1971. 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 pre- ceding 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 re- quired by Section 404 and the payments into the Current Ac- count and Reserve Account of the Debt Service Fund required by Section 405, set aside and pay into the Operating Reserve Account, out of any balance of the Revenues remaining in the Operating Fund, the sum of $16,000.00 or such larger sum as may hereafter be prescribed by the City Council, until the moneys held in the Operating Reserve Account shall be equal to twenty-five percentum of the total amount of the Operating Expenses of the Systems for the twelve months ' period ending on the next preceding September 30th, after which no further payment need be made into such ac- count 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 Sec- tion 404 or Section 405 of this ordinance. Any surplus re- maining in the Operating Fund, after making the payments for Operating Expenses required by Section 404 and the pay- ments into the Current Account and Reserve Account of the Debt Service Fund required by Section 405 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 paying or making provision for paying the principal of and interest on the Bonds or Issued Bonds or Additional Bonds as such principal and interest fall due. Moneys in the Re- serve Account of the Debt Service Fund shall also be used by the City for said purpose whenever and to the extent that the moneys in the Current Account shall be insufficient for said purpose. All moneys in the Debt Service Fund shall be held by the City in trust, and they are hereby pledged to and charged with the payments mentioned in this section. Section 408. Moneys on deposit to the credit of the Reserve Account of the Debt Service Fund or the Opera- tion 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. Obligations so purchased as an investment of moneys in either of such accounts shall be deemed at all times to be a part of such account, and the interest accruing thereon and any profit realized from such investment shall be credited to such account, and any loss resulting from such investment shall be charged to such ac- count. The City shall sell at the best price obtainable any obligations so purchased whenever it may be necessary so to do in order to provide moneys to meet any payment or transfer from such account. ARTICLE V. PARTICULAR COVENANTS OF THE CITY Section 501. The City covenants and agrees that it will duly and punctually pay, or cause to be paid, the prin- cipal of all Bonds issued under this ordinance and the in- terest thereon, on the dates, at the place and .in the man- ner 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, under- takings, stipulations and provisions contained herein or in the Bonds at any time outstanding hereunder. Except as in this ordinance otherwise provided, such principal and in- terest are payable solely from the Revenues derived from the Systems, which revenues are hereby pledged to the pay- ment thereof in the manner and to the extend hereinabove particularly specified, and nothing in the Bonds or coupons or in this ordinance shall be construed as pledging the credit of the City or as obligating the City, directly or indirectly, or contingently, to levy a tax therefor. Section 502 . The City covenants that it will at all times maintain the Systems in good order and condition and will continuously operate the same, and will, from time to time, make all proper repairs, renewals and replacements. Section 503. The City covenants that it will at all times fix, establish and collect adequate rates and charges for the services furnished by the Systems, so that the Reve- nues derived therefrom will at all times be sufficient to provide funds for paying Operating Expenses as they become p r Ir�ak1ifg "the-' ,Jpb�y-iiCkits- -_?e�[ulr_ 6b�- due. and a�yab'_JL-:--and--for y Sect 4-GS -to'-be-­made= ,to: -th&-Debt`l`Ser -ite 7, Funda-' n6-'- the=-.' -�­ RaYfnehts vi^egia xe iby -S_bdt_Iori_--__406­ -tb, be'-ma_de'-_ to `the= Opera- 4 _ -tion----.R�a,-se-r.-ve��A6,cot:tht -_: ahWto--pay- ani 'o the' r 'ind,6b+_6&ie�'b_- m6a.-Y:be-t-60f&=A_- ch- 'arg6-u-P_o-h--thb- rb' 'Systelus-.- 504." The Cit &6veh6nt,,-g'-t'h'-a-:E-'- it all- insurance _a__-3�6-gpon:s- i- -bje`_ insuran=ce-:com- pang -or compahj& tuth zea- and"--qialifi:6d- un2elaws- s--- o_--assum'e the risk e-' r ebf'i -`cover-in g'­-suchi-proper- qing,' ties=b6l6h tb the_ '__S�r_S_tefas as are --,customarily-,- ir_isur'e'd _ , _ and.-aqain'SA_-­Io-i5S as'---are-- ciisto- mars y insured ' sga3nst Y--companies---engaged in- the, -operation of_V­a, te_ r_or' - sOwer systems. The proceeds of any and all such shall;' -to th insurance'-sh-All- -' - necessary, - I I e extent necessary, be 'applied the 1:`repair-and replacement ed of the damag property.- Section - 505-.- The City covenants thatf ,'so--long-as the__B6ndg or any of -'them, 8hal-I-be`outstanding and-except as in this=ordinance otherwi§-e--expres!ii-y-.Pe:Emitt6d,--it ,will th erwise -dispose of or ,encumber , the! Syste is-or'-'any-part tfie'r'dof; and w111- not--c'reate or permit,- -E6 -be cr' eate'd `any,charge -or-,!-,�ren- -''6n-t-h-e ,R,d-venu':e-s Of the- syg- f-drfis ia'n_kJ_-_ng_­eqt,a -1y= with ':or---pribr -to -the charge _�ot Iien ' on such`re=venues _-6f the--zB ond-s issued- unde'r ari-d- "secured-`b Y th--L§� drdinaince:' '_-`TM' me to time, seT1 dify -rn a-ch i n e fixtures; ` ix t tr es app a r a t u s 00 S, ihstrumEints 'red -b� _66Niab�le property acquired -i-t� Or- thdr irr-cOnhectibnwith thee'-S­y-stem'_i3,_ -or -anym-aterials use=d in, connection therewith, if the City -shall by resolution- of--itg, city Coun-c ILI 6e_­ shall bei construed --td-Crept re the=City to make any =pa zn ent except fro m- Revenues 'of the Systems or =-f-r-om=the';moneys raised -=by-tle�issixarice of- the-Bonds. -section=`510 ETThe==City -cov-enarits tl t =it will--keep proper baoks--'of -1accoun.t {separate=from=all other records and accouritsj- rri which full and cor-re'Or -Thal-1 be made_ of a1-1=tr-an acti oris r4elating -to thio Systems - -'_Such books s1�-a11 be`,open: .-to=-th6 nspeotion o-fall -"interested persons.' The Cit. =-further =covenants that not later than three months after the close of each fiscal year, the City will cause to be prepared a statement, certified by a competent and inde- pendent certified public accountant, showing in reasonable detail the revenues and expenses of the Systems during such fiscal year, the assets and liabilities of the Systems at the beginning and close of such fiscal year, the amounts on de- posit at the close of such fiscal year in each of the separate funds or accounts mentioned in this ordinance, and such other information as may be necessary to enable the holders of the Bonds and the Additional Bonds to be fully informed as to all matters pertaining to the financial operation and condi- tion of the Systems during such fiscal year. The City further covenants that it will cause a copy of such statement to be mailed to each of the original purchasers of the Bonds or the Additional Bonds and also to each holder of any of the Bonds or the Additional Bonds who shall have requested it. Section 511. The City covenants that, so long as the Bonds or any of them shall be outstanding, all deposits of money held in either the Construction Fund or the Debt ARTICLE VI. MISCELLANEOUS PROVISIONS Section 601. 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, protection and security of the holders of any and all such Bonds and coupons, all of which, regard- less of the time or times of their issue or maturity, shall be of equal rank without preference, priority or distinc- tion of any of the Bonds or coupons over any other thereof except as expressly provided herein. Section 602 . 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 ordi- nance, or any covenant, condition or stipulation herein, this ordinance and all of its covenants, conditions and stipulations being intended to be for the sole and exclusive benefit of the holders from time to time of the Bonds. Section 603. In the event that any one or more of the provisions of this ordinance or propositions referred to herein shall for any reason be held to be illegal or in- valid by a court of competent jurisdiction or be rendered ineffective by Act of the Legislature, such illegal, in- valid or ineffective provision or proposition shall not af- fect any other provision of or proposition referred to in this ordinance, and this ordinance and the Bonds issued pursuant thereto shall be construed and enforced as if such illegal, invalid or ineffective provision or proposition had not been contained or referred to in this ordinance. Section 604. The City hereby covenants that the pro- ceeds from the sale of the Bonds will be used as soon as practicable for the purpose for which the Bonds are issued; that such proceeds will not be invested in any securities or obligations except for the temporary period pending such use; and that such proceeds will not be used directly or indirectly so as to cause all or any part of the Bonds to be or become "arbitrage bonds" within the meaning of Sec- tion 103 (d) of the Internal Revenue Code of 1954, as amended, or any regulations or rulings prescribed or made pursuant thereto. 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 de- termined that the meeting at which this ordinance was passed was open to the public as required by law; and that public notice of the time, place and purpose of said meeting was given as required by Chapter 227, Acts of the 61st Legis- lature, Regular Session, 19690 `, ._.____-_-MAyor of the City of Fort Worth, Texas ATTEST- Ci y ecretary of the City of ort Worth, Texas APPROVED AS TO FORM AND LEGALITY: 10 L *Fil; lol I I � 1111 IE d r 1 _V4� City Attorney of the City of Fort Worth, Texas This Bond is one of a duly authorized issue of bonds of the City, known as its Water and Sewer Revenue Bonds, Series 109 (hereinafter called the Bonds) , in the aggregate principal amount of Six Million, Three Hundred and Fifty Thousand Dollars ($6, 350,000.00) , dated March 1, 1972, in the denomination of Five Thousand Dollars ($5,000.00) each, and numbered from two thousand, three hundred and twenty-one (2, 321) to three thousand, five hundred and ninety (3,590) . The Bonds are issued for the 'movement and extension of the City's Water System and are payable from the Net Revenues derived by the City from the operation. of the City's Water and Sewer Systems. The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. The Bonds are issued pursuant to an ordinance passed by the City Council of the City on February 9, 1972, to which ordinance reference is hereby made for a more specific description of the revenues charged with and pledged to the payment of the principal of and interest on the Bonds, and for a statement of the nature and extent of such security, of the rights of the bearers of the Bonds and of the annexed interest coupons with respect to such security, and of the agreements of the City with respect thereto, and for a statement of the conditions upon which obligations on a parity with this Bond may be issued. The Bonds of this issue, together with the revenue bonds previously issued, are secured equally and ratably by a pledge of the net revenues of such Systems. The Bonds payable subsequent to March 1, 1987, shall be redeemable prior to their respective maturities, at the option of the City, on March 1, 1987, or on any interest pay- ment date subsequent to March 1, 1987, upon the following terms and conditions, viz. : (1) The Bonds called for redemp- tion on any March 1 must include all of the Bonds then out- standing or must be the outstanding bonds bearing the highest identifying numbers; (2) the redemption price shall be par and accrued interest to date of redemption; and (3) at least thirty days prior to the date upon which such redemption is to be made, a notice of intention to make such redemption, describing the Bonds to be redeemed, must be published at least once in a financial journal of national circulation published in the Borough of Manhattan, in the City and State of New York. Each successive holder of this Bond, and each suc- cessive holder of each of the coupons hereto attached, is conclusively presumed to forego and renounce his equities in favor of subsequent holders for value without notice, and to agree that this Bond and each of the coupons hereto at- tached may be negotiated by delivery by any person having , possession thereof, howsoever such possession may have been acquired, and that any holder who shall have taken this Bond or any of the coupons from any person for value and without notice thereby has acquired absolute title thereto, free from any defenses enforceable against any prior holder and free from all equities and claims of ownership to any such prior holder. This Bond is issued pursuant to the Constitution and statutes of the State of Texas, including particularly Arti- cles 1111 to 1118, inclusive, of the 1925 Revised Civil Statutes of Texas, as amended, and Chapter 250, Acts 51st Legislature (1949) , as amended; pursuant to a proposition adopted by a majority of the resident, qualified electors of the City owning taxable property in the City and who had duly rendered the same for taxation, voting at an elec- tion held for that purpose on October 19, 1965 ; pursuant to Acts of the 61st Legislature (1969) ; 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 precedent to or in the issu- ance of this Bond exist, have been performed and have hap- pened, and the amount of this Bond, together with all other indebtedness of the City, does not exceed any limit pre- scribed by the Constitution or statutes of said State. IN WITNESS WHEREOF, this Bond has been signed by the imprinted or lithographed facsimile signature of the Mayor of said City, attested by the manual signature of the City Secretary, and approved as to form and legality by the im- printed or lithographed facsimile signature of the City Attorney, and the interest coupons attached hereto have been signed by the imprinted or lithographed facsimile signatures of the Mayor and City Secretary, and the official seal of said City has been duly affixed to, printed, lithographed or impressed on this Bond, which Bond is dated March 1, 1972 . ATTEST: CITY"OF FORT�WORTH, TEXAS .� BY City Secretary Mayor APPROVED AS TO FORM AND LEGALITY: City Attorney The form of coupons attached to said Bonds shall be in substantially the following form: Unless the Bond hereinafter mentioned shall have been called for previous redemption and payment thereof made or duly provided for, THE CITY OF FORT WORTH, TEXAS, will pay to BOND NO. bearer, solely from those certain revenues On the referred to in the Bond hereinafter men- 1st day of tioned, at the principal office of the Sept. , 19_ March, Manufacturers Hanover Trust Company, in the SERIES 109 City of New York, New York, the amount spec- $: ified hereon, being interest then due on its COUPON NO. Water and Sewer Revenue Bond, Series 109, dated March 1, 1972 . The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. CITY-OF FORT..'WORTH, TEXAS B Mayor ATTEST: City Secretary (Form of Comptroller 's Certificate) OFFICE OF COMPTROLLER § STATE OF TEXAS § I HEREBY CERTIFY that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that this bond has been ex- amined by him as required by law, and that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas and the Charter of said City, and that it is a valid and binding special obligation of said City of Fort Worth, Texas, payable from the revenues pledged to its payment by and in the ordinance authorizing same, and said bond has this day been registered by me. WITNESS my hand and seal of office at Austin, Texas, this the day of , A. D. 19 Comptroller of Public Accounts of the State of Texas City of Fort Worth, Texas Mayor and Council Communication DATE REFS ERCE SUBJECT: Sale of $6,350,000 PAGE NUM 2/9/72 Water and Sewer Revenue Bonds log 1 Bids for $6,350,000 Water and Sewer Revenue Bonds were received Wednesday, February 9, 1972 at 10 A.M. A summary of the average net effective interest rates for bids received is shown below. 1. Smith, Barney & Go., Inc;. . 4.6940% 2. Halsey' Stuart & Co. 4.7391% 3. Loeb, Rhoades & Co. 4.7393% 4. Weeden & Co. , Inc. 4.7631% 5. Wertheim & Co. and Kuhn, Loeb & Co. 4.7662% 6. Merrill Lynch, Pierce, Fenner & Smith, Inc. 4.7828% 7. Underwood, Neuhaus & Co. , Inc. 4.8167% 8. Donaldson, Lufkin & Jenrette, Lae, 4.8464% It is recommended that the bonds be sold to the bidder offering the lowest cost, Smith," Barney & Co. , Inc. and Associates at an average net effective rate of 4.6940% and that the City Council adopt ordinance number 6627 authorizing the issuance of $6,350,000 in Water and Sewer Revenue Bonds. RNL:mhg SUBMITTED BY: DISPOSITION OUNCIL: PROCESSED BY APPROVED ❑ OTHER (DESCRIBE) CITY SECRETARY DATE CITY MANAGER