HomeMy WebLinkAboutOrdinance 16140ORDINANCE NO ~'
AN ORDINANCE PROVIDING FOR THE ISSUANCE THE GENERAL
PURPOSE REFUNDING BONDS, SERIES 2004 OF THE CITY OF FORT
WORTH, TEXAS, IN THE AGGREGATE PRINCIPAL AMOUNT OF
$46;230 000• APPROVING THE EXECUTION OF A BOND PURCHASE
AGREEMENT AND AN ESCROW AGREEMENT AND ALL OTHER
INSTRUMENTS RELATED THERETO REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH, AND PROVIDING THAT THIS ORDINANCE
SHALL BE IN FORCE AND EFFECT FROM AND AFTER THE DATE OF ITS
PASSAGE.
WHEREAS, the City of Fort Worth (the City or the 'Issuer') desires to refund those
obligations described in Schedule I attached to this Ordinance (the 'Refunded Obligations ') to achieve
a debt service savings with respect to the Refunded Obligations, and
WHEREAS, the bonds hereinafter authorized to refund the Refunded Obligations are to be
issued and delivered pursuant to the laws of the State of Texas, including specifically Chapter 1207
Texas Government Code.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS.
1 That the bond or bonds of the City to be called General Purpose Refunding Bonds, Serves
2004 (the 'Bonds or the Series 2004 Bonds ') shall be issued under and by virtue of the Constitution
and laws of the State of Texas, including specifically Chapter 1207 Texas Government Code, and the
Charter of the City in the aggregate principal amount of $46,230 000) for the purpose of (i) refunding
the Refunded Obhgatlons, and (ii) paying the costs ofissuance associatedwith the issuance of the Series
2004 Bonds.
2 That the Series 2004 Bonds shall be dated October 1 2004 shall be in the denomination of
$5,000 each, or any integral multiple thereof, shall be numbered consecutively from R 1 upward, and
shall mature on the maturity date, in each of the years, and in the amounts, respectively as set forth
in the following schedule:
MATURITY DATE. MARCH 1
YEARS AMOUNTS ($~ YEARS AMOUNTS ($1
.2005 560 000 2013 4,310 000
2006 2014 4,340 000
2007 2015 4,370,000
2008 1,355,000 2016 4 410 000
2009 2,690 000 2017 3,065,000
2010 4,215,000 2018 2,360 000
2011 4,245,000 2019 2,400,000
2012 4,280 000 2020 2,445,000
2021 1 185,000
3 (a) That the City reserves the right to redeem the Series 2004 Bonds maturing on or after
March 1, 2015, in whole or m part, on September 1, 2014 or on any date thereafter, for the principal
amount thereof plus accrued interest thereon to the date fixed for redemption. The years of maturity
of the Series 2004 Bonds called for redemption at the option of the City prior to stated maturity shall
be selected by the City The Series 2004 Bonds or port7ons thereof redeemed within a maturity shall
be selected by lot or other method by the Paying Agent/Registrar (hereinafter defined) provcded, that
during any period in which ownership of the Bonds is determined only by a book entry at a securities
depository for the Series 2004 Bonds, if fewer than all of the Series 2004 Bonds of the same maturity
and bearing the same interest rate are to be redeemed, the particular Series 2004 Bonds of such maturity
and bearing such interest rate shall be selected in accordance with the arrangements between the City
and the securities depository
(b) The Bonds are not subject to mandatory sinking fund redemption prior to their scheduled
maturiries
(c) At least 30 days prior to the date fixed for any such redemption the City shall cause (i) a
written notice of such redemption to be deposited in the United States mail, first-class postage prepaid,
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addressed to each such registered owner at his address shown on the Registration Books (hereinafter
defined} of the Paying Agent/Registrar and (ii) notice of such redemption either to be published one
(1) time in or posted electronically on the website of a financial journal or publication of general
circulation in the United States of America or the State of Texas carrying as a regular feature notices
of municipal bonds called for redemption, proz~ded however that the failure to send, mail, or receive such
notice described in (i) above, or any defect therein or in the sending or mailing thereof, shall not affect
the validity or effectiveness of the proceedings for the redemption of any Series 2004 Bond, and it is
hereby specifically provided that the provision of notice described iri (ii) above shall be the only notice
actually required in connection with or as a prerequisite to the redemption of any Series 2004 Bonds.
By the date fixed for any such redemption, due provision shall be made with the Paying
Agent/Registrar for the payment of the required redemption price for the Series 2004 Bonds or the
portions thereof which are to be so redeemed, plus accrued interest thereon to the date fixed for
redemption. If such notice of redemption is given, and if due provision for such payment is made, all
as provided above, the Series 2004 Bonds or the pornons thereofwhich are to be so redeemed, thereby
automatically shall be redeemed prior to their scheduled maturities, and shall not bear interest after the
date fixed for their redemption, and shall not be regarded as being outstanding except for the right of
the registered owner to receive the redemption price plus accrued interest to the date fixed for
redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying
Agent/Registrar shall record in the Registration Books all such redemptions of principal of the Series
2004 Bonds or any portion thereof. If a portion of any Series 2004 Bond shall be redeemed a
substitute Series 2004 Bond or Series 2004 Bonds having the same maturity date, bearing interest at the
same rate, in any denomination or denominations in any integral multiple of $5 000 at the written
request of the registered owner, and in an aggregate principal amount equal to the unredeemed portion
thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the
expense of the City all as provided in this Ordinance. In addition to the foregoing, the City shall cause
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the Paying Agent/Registrar to give notice of any such redemption in the manner set forth in Section
5(h) hereof. The failure to cause such notice to be given, however, or any defect therein, shall not
affect the validity or effectiveness of such redemption.
4 That the Series 2004 Bonds scheduled to mature dunng the years, respectively set forth
below shall bear interest at the following rates per annum.
maturities 2005, 3 000%
maturities 2008, 3 000%
maturities 2009 4 000%
maturities 2010, 5.000%
maturities 2011, 5.000%
maturiries 2012, 5 000%
maturities 2013, 5 000%
maturities 2014 5 000%
maturities 2015, 5 000%
maturities 2016, 5 000%
maturities 2017 5.000%
maturities 2018, 5 000%
maturities 2019 5.000%
maturities 2020 5 000%
maturities 2021, 5 000%
Said interest shall be payable to the registered owner of any such Series 2004 Bond in the manner
provided and on the dates stated in the FORM OF BOND
5 (a) That the City shall keep or cause to be kept at the designated corporate trust office in
Minneapolis, Minnesota (the 'Designated Trust Office') of Wells Fargo Bank, N.A. (the 'Paying
Agent/Registrar') or such other bank, trust company financial institution, or other agency named m
accordance with the provisions of (g) below books or records of the registration and transfer of the
Series 2004 Bonds (the 'Registration Books ') and the City hereby appoints the Paying Agent/Registrar
as its registrar and transfer agent to keep such books or records and make such transfers and registra-
tions under such reasonable regulations as the City and the Paying Agent/Registrar may prescribe; and
the Paying Agent/Registrar shall make such transfers and registrations as herein provided. It shall be
the duty of the Paying Agent/Registrar to obtain from the registered owner and record in the Regis-
tration Books the address of such registered owner to which payments with respect to the Series 2004
Bonds shall be mailed, as herein provided. The City or rts designee shall have the nght to inspect the
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Registration Books during regular business hours of the Papirig Agent/Registrar, but otherwise the
Paying Agent/Registrar shall keep the Registration Books confidential and, unless otherwise required
bylaw shall not permit their inspection by any other entity Registration of each Series 2004 Bond may
be transferred in the Registration Books only upon presentation and surrender of such bond to the
Paying Agent/Registrar for transfer of registration and cancellation, together with proper written
instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying
Agent/Registrar, evidencing the assignment of such bond, or any portion thereof in any integral
multiple of $5,000 to the assignee or assignees thereof, and the nght of such assignee or assignees to
have such bond or any such portion thereof registered in the name of such assignee or assignees
Upon the assignment and transfer of any Series 2004 Bond or any portion thereof, a new substitute
bond or bonds shall be issued in exchange therefor in the manner herein provided.
(b) The entity in whose name any Series 2004 Bond shall be registered in the Registration
Books at any time shall. be treated as the absolute owner thereof for all purposes of this Ordinance,
whether or not such bond shall be overdue, and the City and the Paying Agent/Registrar shall not be
affected by any notice to the contrary and payment of, or on account of, the principal of, premium,
if any and interest on any such bond shall be made only to such registered owner All such payments
shall be valid and effectual to satisfy and discharge the habihty upon such bond to the extent of the sum
or sums so paid.
(c) The City hereby further appoints the Paying Agent/Registrar to act as the paying agent for
paying the principal of and interest on the Series 2004 Bonds, and to act as its agent to exchange or
replace Series 2004 Bonds, all as provided in this Ordinance. The Paying Agent/Registrar shall keep
proper records of all payments made by the City and the Paying Agent/Registrar with respect to the
Series 2004 Bonds, and of all exchanges thereof, and all replacements thereof, as provided in this
Ordinance.
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(d) Each Series 2004 Bond may be exchanged for fully registered bonds in the manner set forth
herein. Each Series 2004 Bond issued and delivered pursuant to this Ordinance, to the extent of the
unredeemed principal amount thereof, may upon surrender thereof at the Designated Trust Office of
the Paying Agent/Registrar, together with a written request therefor duly executed by the registered
owner or the assignee or assignees thereof, or its or their duly authorized attorneys or representatives,
with guarantee of signatures satisfactory to the Paying Agent/Registrar, at the option of the registered
owner or such assignee or assignees, as appropriate, be exchanged for fully registered bonds, without
interest coupons, in the form prescribed in the FORM OF BOND in any Authorized Denomination
(subject to the requirement hereinafter stated that each substitute bond shall have a single stated
maturity date) as requested in writing by such registered owner or such assignee or assignees, in an
aggregate principal amount equal to the unredeemed principal amount of any Series 2004 Bond or
Series 2004 Bonds so surrendered, and payable to the appropriate registered owner, assignee, or assign
ees, as the case may be. If a pornon of any Series 2004 Bond shall be redeemed prior to its scheduled
maturity as provided herein, a substitute bond or bonds having the same maturity date, bearing interest
at the same rate, in any Authorized Denomination at the request of the registered owner, and in an
aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered
owner upon surrender thereof for cancellation. If any Series 2004 Bond or pornon thereof is assigned
and transferred, each substitute bond issued in exchange therefor shall have the same principal maturity
date and bear interest at the same rate as the Series 2004 Bond for which it is being exchanged. Each
substitute bond shall bear a letter and/or number to dist7nguish it from each other Series 2004 Bond.
The Paying Agent/Registrar shall exchange or replace Series 2004 Bonds as provided herein, and each
fully registered bond or bonds delivered in exchange for or replacement of any Series 2004 Bond or
portion thereof as permitted or required by any provision of this Ordinance shall constitute one of the
Series 2004 Bonds for all purposes of this Ordinance, and may again be exchanged or replaced. It is
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specifically provided, however, that any Series 2004 Bond delivered in exchange for or replacement of
another Serves 2004 Bond prior to the first scheduled interest payment date on the Series 2004 Bonds
(as stated on the face thereo~ shall be dated the same date as such Series 2004 Bond, but each
subsritute bond so delivered on or after such first scheduled interest payment date shall be dated as of
the interest payment date preceding the date on which such substitute bond is delivered, unless such
substitute bond is delivered on an interest payment date, in which case it shall be dated as of such date
of delivery provided, however that if at the time of delivery of any substitute bond the interest on the
Series 2004 Bond for which rt is being exchanged has not been paid, then such substitute bond shall
be dated as of the date to which such interest has been paid in full. On each substitute bond issued in
exchange for or replacement of any Serves 2004 Bond or Serves 2004 Bonds issued under this
Ordinance there shall be printed thereon a Paying Agent/Registrar s Authentication Cernficate, in the
form hereinafter set forth m the FORM OF BOND (the Authentication Cernficate') An authorized
representative of the PayingAgent/Registrar shall, before the delivery of any such substitute bond, date
such substitute bond in the manner set forth above, and manually sign and date the Authentication
Certificate, and no such substitute bond shall be deemed to be issued or outstanding unless the
Authentication Certificate is so executed. The Paying Agent/Registrar promptly shall cancel all Series
2004 Bonds surrendered for exchange or replacement. No additional ordinances, orders, or resolut7ons
need be passed or adopted by the City Council or any other body or person so as to accomplish the
foregoing exchange or replacement of any Series 2004 Bond or pornon hereof, and the Paying
Agent/Registrar shall provide for the printing, execution, and delivery of the substitute bonds in the
manner prescribed herein. Pursuant to Chapter 1206, Texas Government Code, the duty of exchange
or replacement of any Series 2004 Bond as aforesaid is hereby imposed upon the Paying
Agent/Registrar, and, upon the execution of the Authentication Certificate, the exchanged or replaced
bond shall be valid, incontestable, and enforceable in the same manner and with the same effect as the
Series 2004 Bonds which originally were delivered pursuant to this Ordinance, approved by the
Attorney General, and registered by the Comptroller of Public Accounts Neither the City nor the
Paying Agent/Registrar shall be required (1) to issue, transfer, or exchange any bond during a period
beginning at the opening of business 30 days before the day of the first mailing of a notice of
redemption of bonds and ending at the close of business on the dap of such mailing, or (2) to transfer
or exchange any bond so selected for redemption in whole when such redemption is scheduled to
occur within 30 calendar days.
(e) All Series 2004 Bonds issued in exchange or replacement of any other Series 2004 Bond or
portion thereof (i) shall be issued m fully registered form, without interest coupons, with the principal
of and interest on such Series 2004 Bonds to be payable only to the registered owners thereof, (ii) may
be redeemed prior to their scheduled maturities, (iii) maybe transferred and assigned, (iv) may be ex
changed for other Series 2004 Bonds, (v) shall have the characteristics, (vi) shall be signed and sealed,
and (vii) the principal of and interest on the Series 2004 Bonds shall be payable, all as provided, and in
the manner required or indicated, in the FORM OF BOND
(fj The City shall pay the Paying Agent/Registrar s reasonable and customary fees and charges
for making transfers of Series 2004 Bonds, but the registered owner of any Series 2004 Bond requesting
such transfer shall pay any taxes or other governmental charges required to be paid with respect
thereto The registered owner of any Series 2004 Bond requesting any exchange shall pay the Paying
Agent/Registrar s reasonable and standard or customary fees and charges for exchangingany such bond
or portion thereof, together with any taxes or governmental charges required to be paid with respect
thereto all as a condition precedent to the exercise of such privilege of exchange, except, however, that
in the case of the exchange of an assigned and transferred bond or bonds or any portion or pornons
thereof in any integral multiple of $5,000 and in the case of the exchange of the unredeemed portion
of a Series 2004 Bond which has been redeemed in part prior to maturity as provided in this
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Ordinance, such fees and charges will be paid by the City In addition, the City hereby covenants with
the registered owners of the Series 2004 Bonds that rt will (i) pay the reasonable and standard or
customary fees and charges of the Paying Agent/Registrar for its services with respect to the payment
of the principal of and interest on the Serves 2004 Bonds, when due, and (ii) pay the fees and charges
of the Paying Agent/Registrar for services with respect to the transfer or registration of Serves 2004
Bonds solely to the extent above provided, and with respect to the exchange of Series 2004 Bonds
solely to the extent above provided.
(g) The City covenants with the registered owners of the Series 2004 Bonds that at all times
while the Series 2004 Bonds are outstanding the City will provide a competent and legally qualified
bank, trust company financial institution, or other agency to act as and perform the services of Paying
Agent/Registrar for the Series 2004 Bonds under this Ordinance, and that the Paying Agent/Registrar
will be one entity The City reserves the right to and may at its option, change the Paying
Agent/Registrar upon not less than 60 days written notice to the Paying Agent/Registrar In the event
that the entity at any time acting as Paying Agent/Registrar (or its successor by merger, acquisition, or
other method) should resign or otherwise cease to act as such, the City covenants that promptly it will
appoint a competent and legally qualified national or state banking institution which shall be a
corporation organized and doing business under the. laws of the United States of .America or of any
state, authorized under such laws to exercise trust powers, subject to supervision or examination by
federal or state authority and whose qualifications substantially are similar to the previous Paying
Agent/Registrar to act as Paying Agent/Registrar under this Ordinance. Upon any change in the
Paying Agent/Registrar, the previous Paying Agent/Registrar promptly shall transfer and deliver the
Registration Books (or a copy thereof) alongwith all other pertinent books and records relating to the
Series 2004 Bonds, to the new Paying Agent/Registrar designated and appointed by the City Upon
any change in the Paying Agent/Registrar, the City promptly will cause a written notice thereof to be
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sent by the new Paying Agent/Registrar to each registered owner of the Series 2004 Bonds, by United
States mail, first-class postage prepaid, which notice also shall give the address of the new Paying
Agent/Registrar By accepting the position and performing as such, each Paying Agent/Registrar shall
be deemed to have agreed to the provisions of this Ordinance, and a cernfied copy of this Ordinance
shall be delivered to each Paying Agent/Registrar
(h) (i) In addition to the manner of providing notice of redemption of Series 2004
Bonds as set forth m this Ordinance, the Paying Agent/Registrar shall give notice of redemption of
Series 2004 Bonds by United States mail, first-class postage prepaid,. at least thirty (30) days prior to a
redemption date to each NRMSIR (as defined in Section 13 hereo~ and the SID (as defined in Section
13 hereo~ In addition, in the event of a redemption caused by an advance refunding of the Series
2004 Bonds, the Paying Agent/Registrar shall send a second notice of redemption to the persons
specified in the immediately preceding sentence at least thirty (30) days but not more than ninety (90)
days prior to the actual redemption date. Any notice sent to the NRMSIRs or the SID shall be sent
so that they are received at least two (2) days prior to the general mailing or publication date of such
notice. The Paying Agent/Registrar shall also send a notice of redemption to the owner of any Series
2004 Bond who has not sent the Series 2004 Bonds in for redemption sixty (60) days after the
redemption date.
(ii) Each redemption notice, whether required m the FORM OF BOND or otherwise by
this Ordinance, shall contain a description of the Series 2004 Bonds to be redeemed, including the
complete name of the Series 2004 Bonds, the series, the date of issue, the interest rate, the maturity
date, the CUSIP number, if any the amounts called for redemption, the publication and mailing date
for the notice, the date of redemption, the redemption price, the name of the Paying Agent/Registrar
and the address at which the Series 2004 Bond may be redeemed, including a contact person and
telephone number
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(iii) All redemption payments made by the PayingAgent/Registrar to the registered owners
of the Series 2004 Bonds shall include CUSIP numbers relating to each amount paid to such registered
owner
6. That the form of all Series 2004 Bonds, including the form of the Comptroller s Registration
Certificate to accompany the Series 2004 Bonds on the initial delivery thereof, the form of the
Authentication Certificate, and the Form of Assignment to be punted on each of the Series 2004
Bonds, shall be, respectively substantially as set forth in Exhibit A to this Ordinance, with such
appropriate vanat7ons, omissions, or insertions as are permitted or required by this Ordinance and the
Bond Purchase Agreement.
7 (a) That a special fund or account, to be designated the City of Fort Worth, Texas General
Purpose RefundingBonds Series 2004 Interest and Redemption Fund (the Interest and Redemption
Fund') is hereby created and shall be established and maintained by the City The Interest and
Redemption Fund shall be kept separate and apart from all other funds and accounts of the City and
shall be used only for paying the interest on and principal of the Series 2004 Bonds. All taxes levied
and collected for and on account of the Series 2004 Bonds shall be deposited, as collected, to the
credit of the Interest and Redemption Fund. During each year while any of the Serves 2004 Bonds is
outstanding and unpaid, the City Council of the City shall compute and ascertain the rate and amount
of ad valorem tax, based on the latest approved tax rolls of the City with full allowances being made
for tax delinquencies and costs of tax collections, which will be sufficient to raise and produce the
money required to pay the interest on the Series 2004 Bonds as such interest comes due, and to provide
a sinking fund to pay the principal (including mandatory sinking fund redemption payments, if any) of
the Series 2004 Bonds as such principal matures, but never less than 2% of the outstanding principal
amount of the Series 2004 Bonds as a sinking fund each year Said rate and amount of ad valorem tax
is hereby ordered to be levied and is hereby levied against all taxable property in the City for each year
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while any of the Series 2004 Bonds is outstanding and unpaid, and saad ad valorem tax shall be assessed
and collected each such year and deposited to the credit of the Interest and Redemption Fund. Said
ad valorem taxes necessary to pay the interest on and principal of the Serves 2004 Bonds, as such
interest comes due, and such principal matures or comes due through operation of the mandatory
sinking fund redemption, if any as provided m the FORM OF BOND are hereby pledged for such
purpose, within the limit prescribed bylaw There is hereby appropriated from the City s general fund
moneys sufficient to pay debt service on the Series 2004 Bonds due and payable on March 1 2005
(b) Chapter 1208, Texas Government Code, applies to the issuance of the Series 2004 Bonds
and the pledge of ad valorem taxes made under Section 7(a) of this Ordinance, and such pledge is
therefore valid, effective, and perfected. If Texas law is amended at any time while the Serves 2004
Bonds are outstanding and unpaid such that the pledge of ad valorem taxes made by the City under
Section 7(a) of this Ordinance is to be subject to the filing requirements of Chapter 9 Texas Business
& Commerce Code, then in order to preserve to the registered owners of the Series 2004 Bonds the
perfection of the security interest in said pledge, the City agrees to take such measures as rt determines
are reasonable and necessary under Texas law to comply with the applicable provisions of Chapter 9
Texas Business & Commerce Code and enable a filing to perfect the security interest in sand pledge to
occur
8. (a) That in the event any outstanding Series 2004 Bond is damaged, mutilated, lost, stolen,
or destroyed, the Paying Agent/Registrar shall cause to be panted, executed, and delivered, a new bond
of the same pancipal amount, matuaty and interest rate, as the damaged, mutilated, lost, stolen, or
destroyed Series 2004 Bond, in replacement for such Series 2004 Bond in the manner hereinafter pro-
vided.
(b) Application for replacement of damaged, mutilated, lost, stolen, or destroyed Series 2004
Bonds shall be made to the Paying AgentjRegistrar In every case of loss, theft, or destruction of a
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Series 2004 Bond, the applicant for a replacement bond shall furnish to the City and to the Paying
Agent/Registrar such security or indemnity as maybe required by them to save each of them harmless
from any loss or damage with respect thereto Also in every case of loss, theft, or destruction of a
Series 2004 Bond, the applicant shall furnish to the City and to the Paying Agent/Registrar evidence
to their satisfaction of the loss, theft, or destruction of such Series 2004 Bond, as the case maybe. In
every case of damage or mutilation of a Series 2004 Bond, the applicant shall surrender to the Paying
Agent/Registrar for cancellation the Series 2004 Bond so damaged or mutilated.
(c) Notwithstanding the foregoing provisions of this Section, in the event any such Series 2004
Bond shall have matured, and no default has occurred which is then continuing in the payment of the
principal of, redemption premium, if any or interest on the Series 2004 Bond, the City may authorize
the payment of the same (without surrender thereof except in the case of a damaged or mutilated Series
2004 Bond) instead of issuing a replacement Series 2004 Bond, provided security or indemnity is fur
niched as above provided in this Section.
(d) Prior to the issuance of any replacement bond, the Paying Agent/Registrar shall charge the
owner of such Series 2004 Bond with all legal, punting, and other expenses in connection therewith.
Every replacement bond issued pursuant to the provisions of this Section by virtue of the fact that any
Series 2004 Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the City
whether or not the lost, stolen, or destroyed Series 2004 Bond shall be found at any time, or be
enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and
proportionately with any and all other Series 2004 Bonds duly issued under this Ordinance.
(e) In accordance with Chapter 1206, Texas Government Code, this Section of this Ordinance
shall constitute authority for the issuance of any such replacement bond without necessity of further
action by the governing body of the City or any other body or person, and the duty of the replacement
of such bonds is hereby authorized and imposed upon the Paying Agent/Registrar, subject to the
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conditions imposed by this Section 8 of this Ordinance, and the Paying Agent/Registrar shall
authenticate and deliver such bonds in the form and manner and with the effect, as provided in Section
5(d) of this Ordinance for Series 2004 Bonds issued in exchange for other Series 2004 Bonds.
9 That the Mayor, the Interim City Manager, any Assistant City Manager, the City Secretary
or the Director of Finance of the City and all other officers, employees, and agents of the City and
each of them, shall be and they are hereby expressly authorized, empowered, and directed from time
to time and at any time to do and perform all such acts and things and to execute, acknowledge, and
deliver in the name and under the seal and on behalf of the City all such instruments, whether or not
herein mentioned, as maybe necessary or desirable in order to carry out the terms and provisions of
this Ordinance, the Series 2004 Bonds, the Bond Purchase Agreement, the offering documents
prepared in connection with the sale of the Serves 2004 Bonds, the refunding of the Refunded
Obligations, or the Escrow Agreement described in Section 17 hereof In case any officer whose
signature appears on any Series 2004 Bond shall cease to be such officer before the delivery of such
Series 2004 Bond, such signature shall nevertheless be valid and sufficient for all purposes the same as
if he or she had remained in office until such delivery The Interim City Manager of the City or the
designee thereof is hereby authorized to have control of the Series 2004 Bonds and all necessary
records and proceedings pertaining to the Series 2004 Bonds pending their delivery and their
investigation, examination and approval by the Attorney General of the State of Texas, and their
registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the
Serves 2004 Bonds, said Comptroller of Public Accounts (or a deputy designated in wntxng to act for
said Comptroller) shall manually sign the Comptroller s Registrarion Certificate accompanyingthe Series
2004 Bonds, and the seal of said Comptroller shall be impressed, or placed in facsimile, on each such
certificate.
10 (a) That rt is hereby found and determined to be in the best interests of the City for the
Series 2004 Bonds to be issued under this Ordinance to be sold through a negotiated sale pursuant to
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the procedures set forth herein. The sale of the Series 2004 Bonds to Morgan Stanley & Co
Incorporated, as senior managing underwater for a syndicate of investment banking firms (the
Underwriters') fisted in the 'Bond Purchase Agreement between the City and the Underwaters, is
hereby authorized. The Bond Purchase Agreement, which shall set forth the terms of the sale of the
Sexes 2004 Bonds to the Underwaters, in substantially the form attached to this Ordinance as Exhibit
B is hereby accepted, approved and authorized to be delivered in executed form to the Underwriters
The Inteam City Manager, acting for and on behalf of the City is authorized to enter into and carry
out the Bond Purchase Agreement with the Underwriters The Series 2004 Bonds shall be sold to the
Underwriters at such price, and subject to such terms and conditions as set forth in the Bond Purchase
Agreement.
(b) The Interim City Manager and the Director of Finance are authoazed and directed to
provide for and oversee the preparation of a preliminary and final official statement in connection with
the issuance of the Series 2004 Bonds, and to approve such preliminary and final official statement and
deem such preliminary official statement final in compliance with the Rule (as defined in Section 13
hereo~ and to provide rt to the Underwriters of the Sexes 2004 Bonds in compliance with the Rule.
11 That the Issuer covenants to take any action to assure, or refrain from any action which
would adversely affect, the treatment of the Series 2004 Bonds as obligations described in section 103
of the Internal Revenue Code of 1986 (the Code') the interest on which is not includable in the
gross income of the holder for purposes of federal income taxation. In furtherance thereof, the
Issuer covenants as follows.
(a) to take any action to assure that no more than 10 percent of the proceeds of
the Series 2004 Bonds or the projects refinanced therewith (less amounts deposited to a reserve
fund, if any) are used for any private business use as defined in section 141(b) (6) of the Code
or, if more than 10 percent of the proceeds are so used, that amounts, whether or not received
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by the Issuer, with respect to such private business use, do not, under the terms of this
Ordinance or any underlying arrangement, directly or indirectly secure or provide for the
payment of more than 10 percent of the debt service on the Series 2004 Bonds, in contra-
vention of section 141(b) (2) of the Code;
(b) to take any action to assure that in the event that the private business use
described in subsection (a) hereof exceeds 5 percent of the proceeds of the Series 2004 Bonds
or the protects refinanced therewith (less amounts deposited into a reserve fund, if any) then
the amount in excess of 5 percent is used fora private business use which is related and not
disproportionate within the meaning of section 141 (b) (3) of the Code, to the governmental
use;
(c) to take any action to assure that no amount which is greater than the lesser of
$5 000 000 or 5 percent of the proceeds of the Series 2004 Bonds (less amounts deposited into
a reserve fund, if any) is directly or indirectly used to finance loans to persons, other than state
or local governmental units, in contravention of section 141(c) of the Code;
(d) to refrain from taking any action which would otherwise result in the Series
2004 Bonds being treated as private activity bonds within the meaning of section 141(b) of
the Code;
(e) to refrain from taking any action that would result in the Series 2004 Bonds
being federally guaranteed within the meaning of section 149(b) of the Code;
(~ to refrain from using any portion of the proceeds of the Series 2004 Bonds,
directly or indirectly to acquire or to replace funds which were used, directly or indirectly to
acquire investment property (as defined in section 148(b)(2) of the Code) which produces a
materially higher yield over the term of the Series 2004 Bonds, other than investment property
16-
~ 7.
acquired with
(1) proceeds of the Series 2004 Bonds invested for a reasonable temporary
period of 30 days or less, in the case of advance refunding bonds, or for a period of 90
days or less, in the case of current refunding bonds, until such proceeds are needed for
the purpose for which the Series 2004 Bonds are issued,
(2) amounts invested in a bona fide debt service fund, within the meaning
of section 1 148-1(b) of the Treasury Regulations, and
(3) amounts deposited in any reasonably required reserve or replacement
fund to the extent such amounts do not exceed 10 percent of the proceeds of the
Series 2004 Bonds,
(~ to otherwise restrict the use of the proceeds of the Series 2004 Borids or
amounts treated as proceeds of the Series 2004 Bonds, as maybe necessary so that the Series
2004 Bonds do not otherwise contravene the requirements of section 148 of the Code (relating
to arbitrage) and, to the extent applicable, section 149(d) of the Code (relating to advance
refundings) and
(h) to pay to the United States of America at least once during each five year penod
(beginning on the date of delivery of the Serves 2004 Bonds) an amount that is at least equal to
90 percent of the 'Excess Earnings within the meaning of section 1480 of the Code and to
1
pay to the United States of .America, not later than 60 days after the Series 2004 Bonds have
been paid in full, 100 percent of the amount then required to be paid as a result of Excess
Earnings under section 1480 of the Code.
For purposes of the foregoing clauses (a) and (b) above, the Issuer understands that the term
proceeds includes disposition proceeds as defined in the Treasury Regulations and, in the case of
a refunding bond, transferred proceeds (if any) and proceeds of the refunded bonds expended prior
1~
to the date of the issuance of the Series 2004 Bonds It is the understanding of the Issuer that the
covenants contained herein are intended to assure compliance with the Code and any regulations or
rulings promulgated by the U.S. Department of the Treasury pursuant thereto In the event that
regulations or rulings axe hereafter promulgated which modify or expand provisions of the Code, as
applicable to the Series 2004 Bonds, the Issuer will not be required to comply with any covenant
contained herein to the extent that such failure to comply m the opinion of nationally recognized bond
counsel, will not adversely affect the exemption from federal income taxation of interest on the Serves
2004 Bonds under section 103 of the Code. In the event that regulations or rulings are hereafter
promulgated which impose additional requirements which are applicable to the Serves 2004 Bonds, the
Issuer agrees to comply with the additional requirements to the extent necessary in the opinion of
nationally-recognized bond counsel, to preserve the exemption from federal income taxation of interest
on the Series 2004 Bonds under section 103 of the Code. In furtherance of the foregoing, the Mayor,
the Interim City Manager, any Assistant City Manager, and the Director of Finance may execute any
cernficates or other reports required by the Code and to make such elections, on behalf of the City
which may be permitted by the Code as are consistent with the purpose for the issuance of the Serves
2004 Bonds.
In order to facilitate compliance with the above clause (h), a 'Rebate Fund is hereby
established by the City for the sole benefit ofthe United States of America, and such Rebate Fund shall
not be subject to the claim of any other person, including without limitation the registered owners of
the Series 2004 Bonds. The Rebate Fund is established for the additional purpose of compliance with
section 148 of the Code.
12. That the Issuer covenants that the property financed with the proceeds of the Refunded
Obligations will not be sold or otherwise disposed in a transaction resulting m the receipt by the Issuer
is-
of cash or other compensation, unless the Issuer obtains an opinion of nationally recognized bond
counsel substantially to the effect that such sale or other disposition will not adversely affect the tax
exempt status of the Series 2004 Bonds or the Refunded Obligations. For purposes of this Section,
the portion of the property comprising personal property and disposed of in the ordinary course of
business shall not be treated as a transaction resulting in the receipt of cash or other compensation.
For purposes of this Section, the Issuer shall not be obligated to comply with this covenant if it obtains
an opinion of nationally recognized bond counsel to the effect that such failure to comply will not
adversely affect the excludability for federal income tax purposes from gross income of the interest.
13 (a) D~nat~on.r That as used in this Section, the following terms have the meanings ascribed
to such terms below
MSRB" means the Municipal Securities Rulemaking Board.
NRMSIR means each person whom the SEC or its staff has determined to be a
nationally recognized municipal securities information repository within the meaning of the Rule from
time to time.
Mule means SEC Rule 15c2 12, as amended from time to time.
SEC' means the United States Securities and Exchange Commission.
SID" means any person designated by the State of Texas or an authorized department,
officer, or agency thereof as, and determined by the SEC or its staff to be, a state information
depository within the meaning of the Rule from time to time.
(b) Annual Beportr (i) The City shall provide annually to each NRMSIR and any SID within
six months after the end of each fiscal year ending in or after 2004 financial information and operating
data with respect to the City of the general type included in the final Official Statement authorized by
Section 10 of this Ordinance, being the information described in Exhibit C hereto Any financial
statements so to be provided shall be (1) prepared in accordance with the accounting principles
described in Exhibit C hereto or such other accounting principles as the City may be required to
19-
~~~=
employ from time to time pursuant to state law or regulation, and (2) audited, if the City commissions
an audit of such statements and the audit is completed within the period during which they must be
provided. If the audit of such financial statements is not complete within such period, then the City
shall provide unaudited financial statements by the required time, and shall provide audited financial
statements for the applicable fiscal year to each NRMSIR and any SID when and if the audit report
on such statements becomes available.
(ii) If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change
(and of the date of the new fiscal year end) prior to the next date by which the City otherwise would
be required to provide financial information and operating data pursuant to this Section. The financial
information and operating data to be provided pursuant to this Section maybe set forth in full in one
or more documents or may be included by specific reference to any document (including an official
statement or other offering document, if it is available from the MSRB) that theretofore has been
provided to each NRMSIR and any SID or filed with the SEC.
(c) Material EventNotace.r The City shall notify any SID and either each NRMSIR or the MSRB
in a timely manner, of any of the following events with respect to the Series 2004 Bonds, if such event
is material within the meaning of the federal securities laws
1 Principal and interest payment delinquencies,
2. Non-payment related defaults,
3 Unscheduled draws on debt service reserves reflecting financial difficulties,
4 Unscheduled draws on credit enhancements reflecting financial difficulties,
5 Substitution of credit or liquidity providers, or their failure to perform,
6. Adverse tax opinions or events affecting the tax-exempt status of the Series
2004 Bonds,
7 Modifications to rights of holders of the Series 2004 Bonds,
8. Series 2004 Bond calls,
9 Defeasances,
10 Release, substitution, or sale of property securing repayment of the Series 2004
Bonds, and
11 Rating changes
The City shall notify any SID and either each NRMSIR or the MSRB in a timely manner, of any failure
ao-
by the City to provide financial information or operating data in accordance with subsection (b) of this
Section by the time required by such subsection.
(d) L.zmatatzons Disclaimers, and Amendments (i) The City shall be obligated to observe and
perform the covenants specified in this Section for so long as, but only for so long as, the City remains
an obligated person with respect to the Series 2004 Bonds within the meaning of the Rule, except
that the City in any event will give notice of any deposit made in accordance with this Ordinance or
applicable law that causes any Serves 2004 Bond no longer to be outstanding
(ii) The provisions of this Section are for the sole benefit of the holders and beneficial owners
of the Series 2004 Bonds, and nothing in this Section, express or implied, shall give any benefit or any
legal or equitable right, remedy or claim hereunder to any other person. The City undertakes to
provide only the financial information, operating data, financial statements, and notices which rt has
expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any
other information that maybe relevant or material to a complete presentation of the City s financial
results, condition, or prospects or to update any information provided in accordance with this Section
or otherwise, except as expressly provided herein. The City does not make any representation or
warranty concerning such information or its usefulness to a decision to invest in or sell Series 2004
Bonds at any future date.
(iii) UNDER NO CIRCUMSTANCES SHALL THECITYBELIABLETOTHEHOLDER
OR BENEFICIAL OWNER OF ANY SERIES 2004 BOND OR ANY OTHER PERSON IN
CONTRACT OR TORT FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY
BREACH BY THE CITY WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART OF
ANY COVENANT SPECIFIED IN THIS SECTION BUT EVERY RIGHT AND REMEDY OF
ANY SUCH PERSON IN CONTRACT OR TORT FOR OR ON ACCOUNT OF ANY SUCH
BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC
21
PERFORMANCE.
(iv) No default by the City in observing or performing rts obligations under this Section shall
comprise a breach of or default under this Ordinance for purposes of any other provision of this
Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the
duties of the City under federal and state securities laws
(v) The provisions of this Section maybe amended by the City from time to time to adapt to
changed circumstances that arse from a change in legal requirements, a change in law or a change in
the identity nature, status, or type of operations of the City but only if (1) the provisions of this
Section, as so amended, would have permitted an underwriter to purchase or sell Series 2004 Bonds
in the primary offering of the Series 2004 Bonds in compliance with the Rule, taking into account any
amendments or interpretations of the Rule since such offering as well as such changed circumstances
and (2) either (a) the holders of a maJority in aggregate principal amount (or any greater amount
required by any other provision of this Ordinance that authorizes such an amendment) of the
outstanding Series 2004 Bonds consent to such amendment or (b) a person that is unaffiliated with the
City (such as nationally recognized bond counsel) determines that such amendment will not materially
impair the interest of the holders and beneficial owners of the Series 2004 Bonds. If the City so
amends the provisions of this Section, rt shall include with any amended financial information or
operating data next provided in accordance with subsection (b) of this Section an explanation, in
narrative form, of the reason for the amendment and of the impact of any change in the type of
financial information or operating data so provided. The City may also amend or repeal the provisions
of this continuing disclosure agreement if the SEC amends or repeals the applicable provision of the
Rule or a court of final Jurisdiction enters Judgment that such provisions of the Rule are invalid, but
only if and to the extent that the provisions of this sentence would not prevent an underwriter from
lawfully purchasing or selling Series 2004 Bonds in the primary offering of the Serves 2004 Bonds
14 That the Series 2004 Bonds initially shall be issued and delivered in such manner that
22
no physical distribution of the Series 2004 Bonds will be made to the public, and The Depository Trust
Company ("DTC") New York, New York, initially will act as depository for the Series 2004 Bonds
DTC has represented that rt is a limited purpose trust company incorporated under the laws of the
State of New York, a member of the Federal Reserve System, a clearing corporation within the
meaning of the New York Uniform Commercial Code, and a clearing agency registered under Section
17A of the Securities Exchange Act of 1934 as amended, and the City accepts, but in noway verifies,
such representations. The definitive Series 2004 Bonds delivered to the Underwriters shall be registered
in the name of CEDE & CO the nominee of DTC. It is expected that DTC will hold the Series 2004
Bonds on behalf of the Underwriters and their participants So long as each Series 2004 Bond is
registered in the name of CEDE & CO the Paying Agent/Registrar shall treat and deal with DTC the
same in all respects as if rt were the actual and beneficial owner thereof. It is expected that DTC will
maintain abook-entry system which will identify ownership of the Series 2004 Bonds in integral
amounts of $5,000 with transfers of ownership being effected on the records of DTC and its
parncipants pursuant to rules and regulations established by them, and that the Series 2004 Bonds
initially deposited with DTC shall be immobilized and not be further exchanged for substitute Series
2004 Bonds except as hereinafter provided. The City is not responsible or liable for any functions of
DTC, will not be responsible for paying any fees or charges with respect to its services, will not be
responsible or liable for maintaining, supervising, or reviewing the records of DTC or its participants,
or protecting any interests or rights of the beneficial owners of the Series 2004 Bonds It shall be the
duty of the DTC Participants, as defined in the Official Statement herein approved, to make all
arrangements with DTC to establish this book-entry system, the beneficial ownership of the Series 2004
Bonds, and the method of paying the fees and charges of DTC. The City does not represent, nor does
rt in any way covenant that the initial book-entry system established with DTC will be maintained in
23-
the future. Notwithstanding the initial establishment of the foregoing book-entry system with DTC,
if for any reason any of the originally delivered Series 2004 Bonds is duly filed with the Paying
Agent/Registrar with proper request for transfer and substitution, as provided for in this Ordinance,
substitute Series 2004 Bonds will be duly delivered as provided in this Ordinance, and there will be no
assurance or representation that any book-entry system will be maintained for such Series 2004 Bonds
In connection with the initial establishment of the foregoing book-entry system with DTC, the City
heretofore has executed a 'Blanket Letter of Representations prepared by DTC in order to implement
the book-entry system described above.
15. (a) Defeased Bonds That any Series 2004 Bond and the interest thereon shall be deemed to
be paid, retired and no longer outstanding (a 'Defeased Bond") within the meaning of this Ordinance,
except to the extent provided in subsection (d) of this Section, when payment of the principal of such
Series 2004 Bond, plus interest thereon to the due date (whether such due date be by reason of maturity
or otherwise) either (i) shall have been made or caused to be made in accordance with the terms
thereof, or (ii) shall have been provided for on or before such due date by irrevocably depositing with
or making available to the Paying Agent/Registrar in accordance with an escrow agreement or other
instrument (the Future Escrow Agreement') for such payment (1) lawful money of the United States
of America sufficient to make such payment or (2) Defeasance Securities that mature as to principal
and interest in such amounts and at such times as will insure the availability without reinvestment, of
sufficient money to provide for such payment, and when proper arrangements have been made by the
Issuer with the Paying Agent/Registrar for the payment of its services until all Defeased Bonds shall
have become due and payable. At such time as a Series 2004 Bond shall be deemed to be a Defeased
Bond hereunder, as aforesaid, such Series 2004 Bond and the interest thereon shall no longer be
secured by payable from, or entitled to the benefits of, the ad valorem taxes herein levied and pledged
24-
as provided in this Ordinance, and such principal and interest shall be payable solely from such money
or Defeasance Securities Notwithstanding any other provision of this Ordinance to the contrary rt is
hereby provided that any determination not to redeem Defeased Bonds that is made in conjunction
with the payment arrangements specified in subsection 15(a)(i) or (ii) shall not be irrevocable;provzded
that, in the proceedings providing for such payment arrangements, the Issuer (1) expressly reserves the
nght to call the Defeased Bonds for redemption, (2) gives notice of the reservation of that right to the
owners of the Defeased Bonds immediately following the making of the payment arrangements, and
(3) directs that notice of the reservation be included in any redemption notices that rt authorizes.
(b) Investment zn Defeasance Secuntzes Any moneys so deposited with the Paying
Agent/Registrar may at the written direction of the Issuer be invested in Defeasance Securities,
maturing in the amounts and times as hereinbefore set forth, and all income from such Defeasance
Securib.es received by the Paying Agent/Registrar that is not required for the payment of the Defeased
Bonds and interest thereon, with respect to which such money has been so deposited, shall be turned
over to the Issuer, or deposited as directed in writing by the Issuer Any Future Escrow Agreement
pursuant to which the money and/or Defeasance Securities are held for the payment of Defeased
Bonds may contain provisions permitting the investment or reinvestment of such moneys in
Defeasance Securities or the substitution of other Defeasance Securities upon the satisfaction of the
requirements specified in subsection 15(a)(i) or (ii) All income from such Defeasance Securities
received by the Paying Agent/Registrar which is not required for the payment of the Defeased Bonds,
with respect to which such money has been so deposited, shall be remitted to the Issuer or deposited
as directed in wasting by the Issuer
(c) Defeasance Secuntzes Defined. The term 'Defeasance Securities means (i) direct,
noncallable obligations of the United States of America, including obligations that are unconditionally
guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality
25-
of the United States of America, including obligations that are unconditionally guaranteed or insured
by the agency or instrumentality and that, on the date of the purchase thereof are rated as to
investment quality by a nationally recognized investment rating firm not less than AAA or its
equivalent, and (iii) noncallable obligations of a state or an agency or a county municipality or other
political subdivision of a state that have been refunded and that, on the date on the date the governing
body of the Issuer adopts or approves the proceedings authorizing the financial arrangements are rated
as to investment quality by a nationally recognized investment rating firm not less than AAA or its
equivalent.
(d) Paying Agent/Registrar Services Until all Defeased Bonds shall have become due and
payable, the Paying Agent/Registrar shall perform the services of Paying Agent/Registrar for such
Defeased Bonds the same as if they had not been defeased, and the Issuer shall make proper
arrangements to provide and pay for such services as required by this Ordinance.
(e) Selection of Bonds forDefeasance. In the event that the Issuer elects to defease less than all
of the principal amount of Series 2004 Bonds of a maturity the Paying Agent/Registrar shall select, or
cause to be selected, such amount of Series 2004 Bonds by such random method as it deems fair and
appropriate.
16. That the City hereby finds that the issuance of the Series 2004 Bonds for the purpose of
refunding the Refunded Obligations to realize a net present value savings is a public purpose. The
refunding of the Refunded Obligations will produce a net present value savings of $2,321,727 69 and
a gross savings of $3,459 065.38. In addition, the City hereby determines that the Refunded Obligations
shall be called for redemption on the redemption date or dates set forth in Schedule I, at the applicable
redemption price to the date fixed for redemption as provided in Schedule I. The Interim City
Manager or the designee thereof shall take such actions as are necessary to cause the required notice
of redemption to be given in accordance with the terms of each ordinance for the Refunded
2G-
Obligations called for redemption.
17 That the Interim City Manager of the City is hereby authorized and directed to execute,
the City Secretary is authorized to attest, and the City Attorney is authorized to approve as to form,
on behalf of the City the Escrow Agreement covering the use of the moneys to be deposited in
accordance with the terms thereof, for the benefit of the holders of the Refunded Obligations being
retired with the proceeds from the sale of the Series 2004 Bonds, between the City and the escrow
agent named therein, m substantially the form attached to this Ordinance as Exhibit D
18. That the proceeds from the sale of the Series 2004 Bonds shall be used in the manner
described in a letter of instructions executed on behalf of the City by the City s financial advisor The
foregoing notwithstanding, proceeds representing accrued interest on the Series 2004 Bonds shall be
deposited to the credit of the Interest and Redemption Fund and proceeds representing premium on
the Series 2004 Bonds shall be used in a manner consistent with the provisions of Section 1201 029
Texas Government Code.
19 That for all purposes of this Ordinance, unless the context requires otherwise, all
references to designated Sections and other subdivisions are to the Sections and other subdivisions of
this Ordinance. The words herein 'hereof' and 'hereunder" and other words of similar import
refer to this Ordinance as awhole and not to any particular Section or other subdivision. Exceptwhere
the context otherwise requires, terms defined in this Ordinance to impart the singular number shall be
considered to include the plural number and vice versa. References to any named person means that
party and its successors and assigns. References to any constitutional, statutory or regulatory provision
means such provision as it exists on the date this Ordinance is adopted by the City and any future
amendments thereto or successor provisions thereof Any reference to the payment of principal in this
Ordinance shall be deemed to include the payment of any mandatory sinking fund redemption
payments as described herein. Any reference to 'FORM OF BOND shall refer to the form of the
27
Series 2004 Bonds set forth in Exhibit A to this Ordinance. The titles and headings of the Sections and
subsections of this Ordinance have been inserted for convenience of reference only and are not to be
considered a part hereof and shall not in any way modify or restrict any of the terms or provisions
hereof The findings set forth in the preamble to this Ordinance are hereby incorporated into the body
of this Ordinance and made a part hereof for all purposes.
20 That all ordinances and resolutions or parts thereof in conflict herewith are hereby
repealed.
21 That in accordance with the provisions of Section 1201 028, Texas Government Code, this
Ordinance shall be effective immediately upon rts adoption by the City Council.
22. That rt is hereby officially found and determined that the meeting at which this Ordinance
was passed was open to the public, and public notice of the time, place and purpose of said meeting
was given, all as required by Chapter 551 Texas Government Code, as amended.
ADOPTED this September 28, 2004
Mayor, City of Fort Worth, T
ATTEST
City Secretary
City of Fort Worth, Texas i
;~
a ,.-
APP VED AS TO FORM AND LEGALITY `°"
~ ~,
City Attorney " ~?
City of Fort Worth, exas
zs-
SCHEDULE I
CITY OF FORT WORTH, TEXAS GENERAL PURPOSE BONDS, SERIES 1996,
dated January 15, 1996, all obligations maturing on March 1 in each of the years 2008
through 2016, inclusive, in the following principal amounts
2008 $1,375,000
2009 $1,375,000
2010 $1,375,000
2011 $1,375 000
2012 $1,375,000
2013 $1,375,000
2014 $1,375,000
2015 $1,375,000
2016 $1,375,000
aggregating $12,375,000 in principal amount; the obligations maturing on and after
March 1, 2008 shall be redeemed prior to maturity on March 1 2006.
CITY OF FORT WORTH, TEXAS GENERAL PURPOSE BONDS, SERIES 1997
dated April 1 1997 all obligations maturing on March 1 in each of the pears 2009
through 2013, inclusive, 2015 and 2017 m the following principal amounts.
2009 $750 000
2010 $750,000
2011 $750,000
2012 $750 000
2013 $ 750 000
2015 $1,500,000
2017 $1,500 000
aggregating $6,750 000 m principal amount; the obhgabons maturing on and after
March 1, 2009 shall be redeemed prior to maturity on March 1, 2007
CITY OF FORT WORTH, TEXAS GENERAL PURPOSE BONDS, SERIES 1999
dated July 15, 1999 all obligations maturing on March 1 in each of the pears 2010
through 2017 inclusive, 2019 and 2020 in the following principal amounts
2010 $1,500 000
2011 $1,500,000
2012 $1,500,000
2013 $1,500 000
2014 $1,500,000
2015 $1,500 000
2016 $1,500 000
2017 $1,500 000
2019 $3 000 000
2020 $1,500 000
aggregating $16,500 000 in principal amount; the obligations maturing on and after
March 1, 2010 shall be redeemed prior to maturity on March 1 2007
CITY OF FORT WORTH, TEXAS COMBINATION TAX AND REVENUE
CERTIFICATES OF OBLIGATION SERIES 2001A, dated July 15, 2001, all
obligations maturing on March 1 in each of the years 2009 through 2020 inclusive, in
the following principal amounts
2009 $660 000 2015 $900 000
2010 $700 000 2016 $950 000
2011 $735,000 2017 $1,000 000
2012 $775,000 2018 $1,055,000
2013 $815,000 2019 $1,170,000
2014 $855,000 2020 $1,230 000
aggregating $11 955,000 in principal amount; the obligations maturing on and after
March 1 2009 shall be redeemed prior to maturity on March 1 2006.
The redemption price for all of the obligations described above redeemed prior to their scheduled
maturities is par plus accrued interest to the date fixed for redemption.
-~,m~...~.~..., F
EXHIBIT A
FORM OF BOND
NO $
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTIES OF TARRANT AND DENTON
CITY OF FORT WORTH, TEXAS
GENERAL PURPOSE REFUNDING BOND
SERIES 2004
MATURITY DATE INTEREST RATE ORIGINAL ISSUE DATE CUSIP
October 1, 2004
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF FORT WORTH,
TEXAS (the 'Issuer") being a political subdivision of the State of Texas, hereby promises to pay to
or to the registered assignee hereof (either being hereinafter
called the registered owner") the principal amount of
DOLLARS
and to pay interest thereon, from the Original Issue Date specified above, to the maturity date specified
above, or the date of its redemption prior to scheduled maturity at the rate of interest per annum
specified above, with said interest being payable on March 1 2005, and semiannually on each
September 1 and March 1 thereafter; except that if the Paying Agent/Registrar s Authentication Certif
icate appearing on the face of this Bond is dated later than March 1, 2005, such interest is payable semi
annually on each September 1 and March 1 following such date.
THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the
United States of America, without exchange or collection charges. The principal of this Bond shall be
paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or
redemption prior to maturity at the designated corporate trust office in Minneapolis, Minnesota (the
'Designated Trust Office') of Wells Fargo Bank, N.A., which is the 'Paying Agent/Registrar for this
Bond. The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the
registered owner hereof as shown by the 'Registration Books kept by the Paying Agent/Registrar at
the close of business on the 15th day of the month next preceding such interest payment date by
check, dated as of such interest payment date, drawn by the Paying Agent/Registrar on, and payable
solely from, funds of the Issuer required to be on deposit with the Paying Agent/Registrar for such
purpose as hereinafter provided, and such check shall be sent by the Paying Agent/Registrar by United
States mail, first-class postage prepaid, on each such interest payment date, to the registered owner
hereof at its address as it appears on the Registration Books kept by the Paying Agent/Registrar, as
hereinafter described. Any accrued interest due at maturity or upon redemption of this Bond prior to
maturity as provided herein shall be paid to the registered owner upon presentation and surrender of
this Bond for redemption and payment at the Designated Trust Office of the Paying Agent/Registrar
The Issuer covenants with the registered owner of this Bond that no later than each principal payment
and/or interest payment date for this Bond it will make available to the Paying Agent/Registrar from
the 'Interest and Redemption Fund as defined by the ordinance authorizing the Bonds (the
Ordinance') the amounts required to provide for the payment, in immediately available funds, of all
principal of and interest on the Bonds, when due.
IN THE EVENT OF A NON PAYMENT of interest on a scheduled payment date, and for
30 days thereafter, a new record date for such interest payment (a Special Record Date') will be
established by the Paying Agent/Registrar, if and when funds for the payment of such interest have
been received from the Issuer Notice of the Special Record Date and of the scheduled payment date
of the past due interest ("Special Payment Date which shall be 15 days after the Special Record Date)
shall be sent at least five business days prior to the Special Record Date by United States mail, first-class
postage prepaid, to the address of each registered owner of a Bond appearing on the registration books
of the Paying Agent/Registrar at the close of business on the last business dap next preceding the date
of mailing of such notice.
IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday
Sunday a legal holiday or a day on which banking institutions m the city where the Designated Trust
Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then
the date for such payment shall be the next succeeding day which is not such a Saturday Sunday legal
holiday or day on which banking institutions are authorized to close, and payment on such date shall
have the same force and effect as if made on the original date payment was due. Notwithstanding the
foregoing, during any period in which ownership of the Bonds is determined only by a book entry at
a securities depository for the Bonds, any payment to the securities depository or its nominee or
registered assigns, shall be made in accordance with existing arrangements between the Issuer and the
securities depository
THIS BOND is one of a Series of Bonds of like tenor and effect except as to number, principal
amount, interest rate, maturity and option of redemption, authorized in accordance with the Constitu
tion and laws of the State of Texas in the principal amount of $46,230 000 for the following purposes,
to-wit: to refund the 'Refunded Obligations (as such term is defined in the Ordinance) and to pay the
costs incurred in connection with the issuance of the Bonds. All Bonds of this Series are issuable solely
as fully registered bonds, without interest coupons, in the denomination of any integral multiple of
$5 000 (an Authorized Denomination')
ON SEPTEMBER 1 2014 or on any date thereafter, the Bonds of this Series maturing on
March 1, 2015 and thereafter may be redeemed prior to their scheduled maturities, at the option of the
Issuer, in whole, or in part, at par and accrued interest to the date fixed for redemption. The years of
maturity of the Bonds called for redemption at the option of the City prior to stated maturity shall be
selected by the City The Bonds or portions thereof redeemed within a maturity shall be selected by
lot or other method by the Paying Agent/Registrar; provided, that during any period m which ownership
of the Bonds is determined only by a book entry at a securities depository for the Bonds, if fewer than
all of the Bonds of the same maturity and bearing the same interest rate are to be redeemed, the
particular Bonds of such maturity and bearing such interest rate shall be selected in accordance with
the arrangements between the Issuer and the securities depository
AT LEAST 30 days prior to the date fixed for any such redemption (a) a written notice of such
redemption shall be given to the registered owner of each Bond or a portion thereof being called for
redemption by depositing such notice in the United States mail, first-class postage prepaid, addressed
to each such registered owner at his address shown on the Registration Books of the Paying
Agent/Registrar and (b) notice of such redemption either shall be published one (1) time in or posted
electronically on the website of a financial journal or publication of general circulation in the United
States of America or the State of Texas carrying as a regular feature notices of municipal bonds called
for redemption, provided, however, that the failure to send, mail, or receive such notice described in
(a) above, or any defect therein or in the sending or mailing thereof, shall not affect the validity or
effectiveness of the proceedings for the redemption of any Bond, and the Ordinance provides that the
provision of notice as described in (b) above shall be the only notice actually required in connection
with or as a prerequisite to the redemption of any Bond. By the date fixed for any such redemption
due provision shall be made by the Issuer with the Paying Agent/Registrar for the payment of the
required redemption price for this Bond or the portion hereof which is to be so redeemed, plus
accrued interest thereon to the date fixed for redemption. If such notice of redemption is given, and
if due provision for such payment is made, all as provided above, this Bond, or the portion hereof
which is to be so redeemed, thereby automatically shall be redeemed prior to its scheduled maturity
and shall not bear interest after the date fixed for its redemption, and shall not be regarded as being
outstanding except for the right of the registered owner to receive the redemption price plus accrued
interest to the date fixed for redemption from the Paying Agent/Registrar out of the funds provided
for such payment. The Paying Agent/Registrar shall record in the Registration Books all such
redemptions of principal of this Bond or any portion hereof. If a pornon of any Bond shall be
redeemed a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate,
in any Authorized Denomination, at the written request of the registered owner, and in aggregate
principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon
the surrender thereof for cancellation, at the expense of the Issuer, all as provided in the Ordinance.
AS PROVIDED IN THE ORDINANCE, this Bond, or any unredeemed portion hereof, map
at the request of the registered owner or the assignee or assignees hereof, be assigned, transferred, and
exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons,
payable to the appropriate registered owner, assignee, or assignees, as the case may be, having the same
maturity date, and bearing interest at the same rate, in any Authorized Denomination as requested m
writing by the appropriate registered owner, assignee, or assignees, as the case maybe, upon surrender
of this Bond to the Paying Agent/Registrar at its Designated Trust Office for cancellation, all in
accordance with the form and procedures set forth in the Ordinance. Among other requirements for
such assignment and transfer, this Bond must be presented and surrendered to the Paying Agent/Reg-
istrar, together with proper instruments of assignment, in form and with guarantee of signatures
satisfactory to the Paying Agent/Registrar, evidencing assignment of this Bond or any portion or
portions hereof in any integral multiple of $5,000 to the assignee or assignees in whose name or names
this Bond or any such portion or portions hereof is or are to be transferred and registered. The form
of Assignment printed or endorsed on this Bond maybe executed by the registered owner to evidence
the assignment hereof, but such method is not exclusive, and other instruments of assignment
sarisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Bond or any
portion or pornons hereof from time to time by the registered owner The one requesting such
exchange shall pay the PayingAgent/Registrar's reasonable standard or customary fees and charges for
exchanging any Bond or portion thereof The foregoing notwithstanding, in the case of the exchange
of a portion of a Bond which has been redeemed prior to maturity as provided herein, and in the case
of the exchange of an assigned and transferred Bond or Bonds or any portion or portions thereof, such
fees and charges of the Paying Agent/Registrar will be paid by the Tssuer In any circumstance, any
taxes or governmental charges required to be paid with respect thereto shall be paid by the one request
trig such assignment, transfer, or exchange as a condition precedent to the exercise of such privilege.
In any circumstance, neither the Issuer nor the Paying Agent/Registrar shall be required (1) to make
any transfer or exchange during a period beginning at the opening of business 30 days before the day
of the first mailing of a notice of redemption of bonds and ending at the close of business on the day
of such mailing, or (2) to transfer or exchange any Bonds so selected for redemption when such
redemption is scheduled to occur within 30 calendar days
WHENEVER the beneficial ownership of this Bond is determined by a book entry at a
securities depository for the Bonds, the foregoing requirements of holding, delivering or transferring
this Bond shall be modified to require the appropriate person or entity to meet the requirements of the
securities depository as to registering or transferring the book entry to produce the same effect.
IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the Issuer, resigns,
or otherwise ceases to act as such, the Issuer has covenanted in the Ordinance that it promptly will
appoint a competent and legally qualified substitute therefor, and promptly will cause written notice
thereof to be mailed to the registered owners of the Bonds
IT IS HEREBY CERTIFIED AND RECITED that the issuance of this Bond, and the series
of which rt is a part, is duly authorized by law• that all acts, conditions and things required to be done
precedent to and in the issuance of this series of bonds, and of this Bond, have been properly done
and performed and have happened in regular and due time, form and manner as required by law• that
sufficient and proper provision for the levy and collection of taxes has been made, which, when
collected, shall be appropriated exclusively to the payment of this Bond and the series of which rt is a
part; and that the total indebtedness of the City of Fort Worth, Texas, including the entire series of
bonds of which this is one, does not exceed any constitutional, statutory or charter limitation.
BY BECOMING the registered owner of this Bond, the registered owner thereby
acknowledges all of the terms and promsions of the Ordinance, agrees to be bound by such terms and
provisions, acknowledges that the Ordinance is duly recorded and available for inspection in the official
minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of
this Bond and the Ordinance constitute a contract between each registered owner hereof and the
Issuer
IN WITNESS WHEREOF this Bond has been signed with the manual or facsimile signature
of the Mayor or Mayor Pro-Tem of said City attested with the manual or facsimile signature of the City
Secretary and approved as to form and legality with the manual or facsimile signature of the City
Attorney and the official seal of said City has been duly affixed to or impressed, or placed in facsimile,
on this Bond.
ATTEST
City Secretary Mayor
APPROVED AS TO FORM AND LEGALITY
x~x (SEAL)
City Attorney
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby cernfied that this Bond has been issued under the provisions of the proceedings
adopted by the Issuer as described in the text of this Bond, and that this Bond has been issued in
conversion of and exchange for or replacement of a bond, bonds, or a pornon of a bond or bonds of
an issue which originally was approved by the Attorney General of the State of Texas and registered
by the Comptroller of Public Accounts of the State of Texas
Dated.
WELLS FARGO BANK, N.A.,
Paying Agent/Registrar
By
Authorized Representative
FORM OF ASSIGNMENT
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
Please insert Social Security or Taxpayer
Identification Number of Transferee
(Please print or typewrite name and address, including
zip code of Transferee)
the within Bond and all rights thereunder, and hereby
irrevocably constitutes and appoints
attorney to register the transfer of the within Bond on the
books kept for registration thereof, with full power of
substitution in the premises.
Dated.
Signature Guaranteed.
NOTICE. Signature(s) must be guaranteed by
a member firm of the New York Stock
Exchange or a commercial bank or trust
company
NOTICE. The signature above must
correspond with the name of the Registered
Owner as rt appears upon the front of this
Bond in every particular, without alteration or
enlargement or any change whatsoever
FORM OF COMPTROLLERS CERTIFICATE (ATTACHED TO
THE BONDS UPON INITLAL DELIVERY THEREOF)
OFFICE OF COMPTROLLER
STATE OF TEXAS
REGISTER NO
I hereby certify that there is on file and of record in my office a cernficate of the Attorney
General of the State of Texas to the effect that this Bond has been examined by him as required by law
and that he finds that it has been issued in conformity with the Constitution and laws of the State of
Texas, and that rt es a valid and binding obligation of the City of Fort Worth, Texas, payable m the
manner provided 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 Austen, Texas
Comptroller of Public Accounts
of the State of Texas
(SEAL)
NOTE TO PRINTER.
*¶not to be on bond
The printer of the Series 2004 Bonds es hereby authorized to print on the Series 2004 Bonds (i) the
form of bond counsel's opinion relating to the Series 2004 Bonds, and (ii) an appropriate statement of
insurance furnished by a municipal bond insurance company providing municipal bond insurance, if
any covering all or any part of the Series 2004 Bonds
EXHIBIT B
Bond Purchase Agreement
Exhibit C
to
Ordinance
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 13 of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided annually
m accordance with such Section are as specified (and included in the Appendix or under the headings
of the Official Statement referred to) below
The information of the general type included in tables 1 through 6, inclusive, and 8 through 15,
inclusive.
Appendix B to the Official Statement, Excerpts from the Annual Financial Report of the
City of Fort Worth, Texas for the Fiscal Year Ended September 30, 2003
Accounting Principles
The accounting principles referred to in such Section are the accounting principles described
in the notes to the annual financial report referred to above.
EXHIBIT D
Escrow Agreement
THE STATE OF TEXAS
COUNTIES OF TARRANT AND DENTON
CITY OF FORT WORTH
I, Marty Hendrix, City Secretary of the City of Fort Worth, in the State of Texas, do hereby
certify that I have compared the attached and foregoing excerpt from the minutes of the regular, open,
public meeting of the Ci Council of the City of Fort Worth, Texas held on September 28, 2004 and
of Ordinance No j which was duly passed at said meeting, and that said copy is a true and
correct copy of said excerpt and the whole of said Ordinance.
In testimony whereof, I have set my hand and have hereunto affixed the seal of said City of
Fort Worth, this 28th day of September, 2004
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