HomeMy WebLinkAboutOrdinance 12546~_
ORDINANCE NO . /~ Jr /~
ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF
CITY OF FORT WORTH, TEXAS WATER AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE BONDS, SERIES 1996;
AND ORDAINING OTHER MATTERS RELATED THERETO
THE STATE OF TEXAS
COUNTIES OF TARR.ANT AND DENTON
CITY OF FORT WORTH
WHEREAS, the City adopted an ordinance on October 17, 1989
(the "Subordinate Lien Revenue Bond Ordinance") authorizing the
issuance of City of Fort Worth, Texas Water and Sewer System
Subordinate Lien Revenue Bonds, Series 1989, in the aggregate
principal amount of $33,300,000 (the "Series 1989 Subordinate Lien
Obligations"); and
WHEREAS, the City reserved the right in the Subordinate Lien
Revenue Bond Ordinance to issue obligations payable from a lien on
the "Pledged Revenues" of the combined Water and Sewer System on a
parity with the Series 1989 Subordinate Lien Obligations; and
WHEREAS, pursuant to such reservation of authority, the City
heretofore has issued its City of Fort Worth, Texas Water and Sewer
System Subordinate Lien Revenue Bonds, Series 1991, in the
aggregate principal amount of $16,155,000 (the "Series 1991
Subordinate Lien Obligations"), its City of Fort Worth, Texas Water
and Sewer System Subordinate Lien Revenue Bonds, Series 1992, in
the aggregate principal amount of $12,000,000 (the "Series 1992
Subordinate Lien Obligations"), and its City of Fort Worth, Texas
Water and Sewer System Subordinate Lien Revenue Bonds, Series 1995,
in the aggregate principal amount of $18,880,000 (the "Series 1995
Subordinate Lien Obligations"); and
WHEREAS, the liens on and pledges of the Pledged Revenues
securing the Previously Issued Parity Bonds and the line of credit
issued by the Bank are superior to the lien on and pledge of the
Pledged Revenues securing the Previously Issued Subordinate Lien
Obligations; and
WHEREAS, the City deems it necessary and advisable to issue
bonds on a parity with the Previously Issued Subordinate Lien
Obligations;
WHEREAS, the bonds hereinafter authorized are to be issued and
delivered pursuant to Vernon's Annotated Texas Civil Statutes,
Articles 1111 to 1118, inclusive, as amended, and other applicable
laws, for the purpose of extending and improving the City's
combined Water and Sewer System; and
WHEREAS, a notice of intention to issue the bonds hereinafter
authorized was published in accordance with law, in the Fort Worth
Star-Telegram on May 17, 1996 and May 24, 1996; and
WHEREAS, no petition seeking a referendum on the question of
the issuance of the bonds hereinafter authorized was presented to
the City Secretary; and
WHEREAS, the Texas Water Development Board has committed to
purchase the bonds hereinafter authorized pursuant to Subchapter J
of Chapter 15, Texas Water Code
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS
Section 1. BONDS AUTHORIZED. That the City's bonds (the
"Obligations") are hereby authorized to be issued in the aggregate
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principal amount of $17,120,000 for the purpose of extending and
improving the City's combined water and sewer system, to-wit:.
extending. and improving the Village Creek Wastewater Treatment
Plant and the West Fork Wastewater Treatment Plant; and other
improvements to the sewer system. The Obligations shall be
designated as the "City of Fort Worth, Texas Water and Sewer System
Subordinate Lien Revenue Bonds, Series 1996".
Section 2 DATE AND MATURITIES. That the Obligations shall
be dated June 1, 1996, shall be in the denomination of $5,000 each,
or any integral multiple thereof, shall be numbered consecutively
from R-1 upward, and shall mature on the maturity date, in each. of
the years, and in the amounts, respectively, as set forth in the
following schedule:
MATURITY DATE: MARCH 1
AGGREGATE AGGREGATE
~$~ PRINCIPAL
AMOUNTS.
~g$,g PRINCIPAL
AMOUNTS
1997 $250,000 2007 $ 855,000
1998 $6].5,000 2008 $ 890,000
1999 $635,000 2009 $ 930,000
2000 $655,000 2010 $ 975,000
2001 $680,000 2011 $1,015,000
2002 $705,000 2012 $1,060,000
2003 $730,000 2013 $1,110,000
2004 $760,000 2014 $1,160,000
2005 $790,000 2015 $1,215,000
2006 $820,000 2016 $1,270,000
The Texas Water Development Board ("TWDB") will purchase the
Obligations in the manner described in Section 27 of this
Ordinance.
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Section 3. RIGHT OF PRIOR REDEMPTION. The City reserves the
right to redeem the Obligations on March 1, 2006, or on any date
thereafter, in whole or in part, and if in part, in inverse order
of maturity, for the principal amount thereof and accrued interest
thereon to the date fixed for redemption, and without premium.
At least 30 days prior to the date fixed for any such
redemption a written notice of such redemption shall be given to
the registered owner of each Obligation or a portion thereof being
called for redemption by depositing such notice in the United
States mail, postage prepaid, addressed to each such registered
owner at his address shown on the registration books of the Paying
Agent/Registrar. By the date fixed for any such redemption due
provision shall be made by the City with. the Paying Agent/Registrar
for the payment of the required redemption price for the
Obligations or the portions thereof which are to be so redeemed,
plus accrued interest thereon to the date fixed for redemption If
such written notice of redemption is given, and if due provision
for such payment is made, all as provided above, the Obligations,
or the portions thereof which 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
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in the Registration Books all such redemptions of principal of the
Obligations or any portion thereof. If a portion of any Obligation
shall be redeemed a substitute Obligation or Obligations 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
Section 4. INTEREST. That the Obligations shall bear
interest at the following rates per annum:
maturities
maturities
maturities
maturities
maturities
maturities
maturities
maturities
maturities
maturities
1997, 2.850%
1998, 3.200%
1999, 3 400%
2000, 3.600%
2001, 3.700%
2002, 3.800%
2003, 3.900%
2004, 4 000%
2005, 4.100%
2006, 4 200%
maturities 2007, 4 300%
maturities 2008, 4.400%
maturities 2009, 4 500%
maturities 2010, 4 600%
maturities 2011, 4 650%
maturities 2012, 4.700%
maturities 2013, 4 750%
maturities 2014, 4.800%
maturities 2015, 4 850%
maturities 2016, 4 850%
Said interest shall be payable to the registered owner of any such
Obligation in the manner provided and on the dates stated in the
FORM OF BOND set forth in this Ordinance.
Section 5. (a) The City shall keep or cause to be kept at the
corporate trust office in Dallas, Texas (the "Designated Trust
Office") of Texas Commerce Bank National Association, or such other
bank, trust company, financial institution, or other agency named
in accordance with the provisions of (g) of this Section hereof
(the "Paying Agent/Registrar") books or records of the registration
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and transfer of the Obligations (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 registrations under such reasonable regulations as
the City and 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
Registration Books the address to which payments with respect to
the Obligations owned by any such registered owner thereof shall be
mailed as herein provided. The City or its designee shall have the
right to inspect the Registration Books during regular business
hours of the Paying Agent/Registrar at its Designated Trust Office,
but otherwise the Paying Agent/Registrar shall keep the Regis-
tration Books confidential and, unless otherwise required by law,
shall not permit their inspection by any other entity.
Registration of each Obligation may be transferred in the Registra-
tion Books only upon presentation and surrender thereof to the
Paying Agent/Registrar at its Designated Trust Office 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 thereof, or any portion thereof in any integral multiple
of $5,000, to the assignee or assignees thereof, and the right of
such assignee or assignees to have the Obligation or any such
portion thereof registered in the name of such assignee or assign-
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ees . Upon the assignment and transfer of any Obligation 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 Obligation shall be regis-
tered 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 liability 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 Obligations, and to act as its agent to
exchange or replace Obligations, 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 Obligations, and of all exchanges of such bonds, and
all replacements of such bonds, as provided in this Ordinance.
(d) Each Obligation may be exchanged for fully registered
bonds in the manner set forth herein Each bond issued and
• delivered pursuant to this Ordinance, to the extent of the unpaid
or unredeemed principal amount thereof, may, upon surrender of such
bond at the Designated Trust Office of the Paying Agent/Registrar,
_g_
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 set
forth in this Ordinance, in the denomination of $5,000, or any
integral multiple of $5,000 (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 unpaid or unredeemed principal amount of any Obligation or
Obligations so surrendered, and payable to the appropriate
registered owner, assignee, or assignees, as the case may be. If
a portion of any Obligation 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 the denomination or denominations of any integral multiple of
$5,000 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 Obligation or portion thereof is assigned and
transferred, each bond issued in exchange therefor shall have the
same principal maturity date and bear interest at the same rate as
the bond for which it is being exchanged. Each substitute bond
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shall bear a letter and/or number to distinguish it from each other
bond The Paying Agent/Registrar shall exchange or replace
Obligations as provided herein, and each fully registered bond or
bonds delivered in exchange for or replacement of any Obligation or
portion thereof as permitted or required by any provision of this
Ordinance shall constitute one of the Obligation for all purposes
of this Ordinance, and may again be exchanged or replaced. It is
specifically provided, however, that any Obligation delivered in
exchange for or replacement of another Obligation prior to the
first scheduled interest payment date on the Obligations (as stated
on the face thereof) shall be dated the same date as such
Obligation, but each substitute 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 Obligation for
which it 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 Obligation issued under this Ordinance there
shall be printed thereon a Paying Agent/Registrar's Authentication
Certificate, in the form hereinafter set forth. An authorized
representative of the Paying Agent/Registrar shall, before the
delivery of any such substitute bond, date such substitute bond in
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the manner set forth above, and manually sign and date such
Certificate, and no such substitute bond shall be deemed to be
issued or outstanding unless such Certificate is so executed. The
Paying Agent/Registrar promptly shall cancel all Obligations
surrendered for exchange or replacement. No additional ordinances,
orders, or resolutions need be passed or adopted by the City
Council or any other body or person so as to accomplish the fore-
going exchange or replacement of any Obligation or portion thereof,
and the Paying Agent/Registrar shall provide for the printing,
execution, and delivery of the substitute bonds in the manner
prescribed herein, and said bonds shall be of type composition
printed on paper with lithographed or steel engraved borders of
customary weight and strength. Pursuant to Article 717k-6,
V.A T.C S., and particularly Section 6 thereof, the duty of
exchange or replacement of any Obligations as aforesaid is hereby
imposed upon the Paying Agent/Registrar, and, upon the execution of
the above-described Paying Agent/Registrar's Authentication
Certificate, the exchanged or replaced bond shall be valid,
incontestable, and enforceable in the same manner and with the same
effect as the Obligations 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 busi-
ness 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
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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 Obligations issued in exchange or replacement of any
other Obligation or portion thereof (i) shall be issued in fully
registered form, without interest coupons, with the principal of
and interest on such Obligations to be payable only to the regis-
tered owners thereof, (ii) may be redeemed prior to their scheduled
maturities, (iii) may be transferred and assigned, (iv) may be ex-
changed for other Obligations, (v) shall have the characteristics,
(vi) shall be signed and sealed, and (vii) the principal of and
interest on the Obligations shall be payable, all as provided, and
in the manner required or indicated, in the FORM OF BOND set forth
in this Ordinance.
__ The Paying Agent/Registrar shall complete the "Date of
Delivery" on each installment of Obligations initially delivered to
the TWDB, upon the satisfaction of the conditions described in
Section 27 of this Ordinance
(f) The City shall pay the Paying Agent/Registrar's
reasonable and customary fees and charges for making transfers of
Obligations, but the registered owner of any Obligation requesting
such transfer shall pay any taxes or other governmental charges
required to be paid with respect thereto The registered owner of
any Obligation requesting any exchange shall pay the Paying
Agent/Registrar's reasonable and standard or customary fees and
charges for exchanging any such bond or portion thereof, together
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i
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 portions thereof in any integral multiple of $5,000, and
in the case of the exchange of a portion the unredeemed portion of
an Obligation which has been redeemed in part prior to maturity, as
provided in this Ordinance, such fees and charges will be paid by
the City. In addition, the City hereby covenants with the
registered owners of the Obligations that it 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 Obligations, when due, and (ii)
pay the fees and charges of the Paying Agent/Registrar for services
with respect to the transfer or registration of Obligations solely
to the extent above provided, and with respect to the exchange of
Obligations solely to the extent above provided
(g) The City covenants with the registered owners of the
Obligations that at all times while the Obligations are outstanding
the City will provide a competent and legally qualified bank or
trust company to act as and perform the services of Paying
Agent/Registrar for the Obligations 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
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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), along with all other
pertinent books and records relating to the Obligations, 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 sent by the new Paying
Agent/Registrar to each registered owner of the Obligations, by
United States mail, 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 certified copy of this Ordinance shall be delivered to each
Paying Agent/Registrar.
Section 6 The form of all Obligations, including the form of
the Paying Agent/Registrar's Certificate, the Form of Assignment,
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and the form of the Comptroller's Registration Certificate to
accompany the Obligations on the initial delivery thereof, shall
be, respectively, substantially as follows, with such appropriate
variations, omissions, or insertions as are permitted or required
by this Ordinance:
NO $
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTIES OF TARRANT AND DENTON
CITY OF FORT WORTH, TEXAS
WATER AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE BOND
SERIES 1996
MATURITY DATE INTEREST RATE DATE OF DELIVERY CUSIP
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF FORT WORTH,
TEXAS (the "Issuer"), hereby promises to pay to
or to the registered assignee hereof
(either being hereinafter called the "registered owner") the
principal amount of
and to pay interest thereon, from the date of delivery of this Bond
specified above, to the date of its scheduled maturity 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, 1997, and semiannually on each September 1 and
March 1 thereafter, except that if the Paying Agent/Registrar's
Authentication Certificate appearing on the face of this Bond is
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dated later than March 1, 1996, such interest is payable
semiannually on each September 1 and March 1 following such date.
THE TERMS AND PROVISIONS of this Bond are continued on the
reverse side hereof and shall for all purposes have the same effect
as though fully set forth at this place.
*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 upon the date fixed for its redemption prior to
maturity, at the corporate trust office in Dallas, Texas (the
"Designated Trust Office") of Texas Commerce Bank National
Association, 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 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 herein-
after provided; and such check shall be sent by the Paying
Agent/Registrar by United States mail, 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. The foregoing
notwithstanding, so long as the Texas Water Development Board is
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the registered owner of 100 in aggregate principal amount of the
Bonds then outstanding, payment of principal and interest on the
Bonds shall be made thereto by wire transfer, at no expense to the
Texas Water Development Board. The Issuer covenants with the
registered owner of this Bond that no later than each principal
payment date and interest payment date for this Bond it will make
available to the Paying Agent/Registrar the amounts required to
provide for the payment, in immediately available funds, of all
principal of and interest on the Bonds, when due.
*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 in 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
*THIS BOND is one of a series of bonds, dated June 1, 1996 of
like tenor and effect except as to number, principal amount,
interest rate, maturity and right of prior redemption, aggregating
Seventeen Million One Hundred Twenty Thousand Dollars ($17,120,000)
(herein sometimes called the "Bonds"), issued for the purpose of
extending and improving the Issuer's combined water and sewer
system, to-wit. extending and improving the Village Creek
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Wastewater Treatment Plant and the West Fork Wastewater Treatment
Plant; and other improvements to the sewer system.
*THE OUTSTANDING BONDS of this Series may be redeemed prior
to their scheduled maturities, at the option of the Issuer, in
whole, or in part, and if in part, in inverse order of maturity, on
March 1, 2006, or on any date thereafter, for the principal amount
thereof and accrued interest thereon to the date fixed for
redemption, and without premium
*AT LEAST 30 days prior to the date fixed for any such redemp-
tion 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,
postage prepaid, addressed to each such registered owner at his
address shown on the Registration Books of the Paying
._ Agent/Registrar. 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 written 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
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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 portion of any Bond shall be redeemed a substitute Bond or
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
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 authorizing the Bonds (the "Ordinance").
*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 As provided in the Ordinance,
this Bond, or any unredeemed portion hereof, may, 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 denomination or denominations in any integral
multiple of $5,000 as requested in writing by the appropriate
registered owner, assignee, or assignees, as the case may be, upon
surrender of this Bond to the Paying Agent/Registrar at its
Designated Trust Office for cancellation, all in accordance with
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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/Registrar, 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 may be executed
by the registered owner to evidence the assignment hereof, but such
method is not exclusive, and other instruments of assignment
satisfactory to the Paying Agent/Registrar may be used to evidence
the assignment of this Bond or any portion or portions hereof from
._ time to time by the registered owner The one requesting such
exchange shall pay the Paying Agent/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 Issuer. In any circumstance, any taxes or
governmental charges required to be paid with respect thereto shall
be paid by the one requesting such assignment, transfer, or
exchange as a condition precedent to the exercise of such
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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
*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,
whose qualifications substantially are similar to the previous
Paying Agent/Registrar it is replacing, and promptly will cause
written notice thereof to be mailed to the registered owners of the
Bonds
*BY BECOMING the registered owner of this Bond, the registered
owner thereby acknowledges all of the terms and provisions 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 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
*THE ISSUER has reserved the right, subject to the
restrictions stated, and adopted by reference, in the Ordinance, to
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issue (1) Prior Lien Obligations (as defined in the Ordinance)
secured by a lien on and pledge of the Pledged Revenues (as defined
in the Ordinance) superior to such lien and pledge securing the
Bonds, and (2) additional parity revenue bonds which also may be
made payable from, and secured by a lien on and pledge of, the
Pledged Revenues securing the Bonds.
*THE REGISTERED OWNER HEREOF shall never have the right to
demand payment of this obligation out of any funds raised or to be
raised by taxation, or from any source whatsoever other than the
aforesaid Pledged Revenues.
IT IS HEREBY certified and covenanted that this Bond has been
duly and validly authorized, issued and delivered; that all acts,
conditions and things required or proper to be performed, exist and
be done precedent to or in the authorization, issuance and delivery
of this Bond have been performed, existed and been done in
accordance with law; that this Bond is a special obligation; and
that the principal of and interest on this Bond, together with
other bonds of the Issuer now or hereafter outstanding on a parity
therewith, are payable from, and secured by a lien on and pledge
of, the Pledged Revenues (as defined in the Ordinance), and which
include the Net Revenues of the Issuer's combined Water and Sewer
System; however, the lien on and pledge of the Pledged Revenues
shall be junior and subordinate to the Prior Lien Obligations (as
defined in the Ordinance), which consist of the Prior Lien Bonds
(as defined in the Ordinance) and any System Obligations (as
defined in the Ordinance).
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IN WITNESS WHEREOF, this Bond has been signed with the
imprinted or lithographed facsimile signature of the Mayor of said
City, attested by the imprinted or lithographed facsimile signature
of the City Secretary, and approved as to form and legality by the
imprinted or lithographed facsimile signature of the City Attorney,
and the official seal of said City has been duly affixed to,
printed, lithographed or impressed on this Bond.
CITY OF FORT WORTH, TEXAS
By
Mayor
ATTEST:
City Secretary
(SEAL )
APPROVED AS TO FORM AND LEGALITY:
City Attorney
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FORM OF PAYING AGENT/REGTS'1'R_AR'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Bond has been issued
under the provisions of the Ordinance described on the face
of this Bond; and that this Bond has been issued in exchange
for or replacement of a bond, bonds, or a portion 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
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)
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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 it
appears upon the front of this
Bond in every particular,
without alteration or enlarge-
ment or any change whatsoever
** (FORM OF COMPTROLLER'S CERTIFICATE ATTACHED TO
THE BONDS UPON INITIAL DELIVERY THEREOF)
OFFICE OF COMPTROLLER
REGISTER NO.
STATE OF TEXAS
I hereby certify that there is on file and of record in my
office a certificate of the Attorney General of the State of Texas
to the effect that this Bond has been examined by him as required
by law, and that he finds that it has been issued in conformity
with the Constitution and laws of the State of Texas, and that it
is a valid and binding special obligation of the City of Fort
Worth, Texas, payable in the manner provided by and in the
ordinance authorizing same, and said Bond has this day been
registered by me.
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WITNESS MY HAND and seal of office at Austin, Texas
Comptroller of Public Accounts of
the State of Texas
(SEAL )
NOTE TO PRINTER:
*¶s to be on reverse side of bond
**¶ not to be on bond
Section 7 DEFINITIONS. That the definitions set forth in
the Master Ordinance are hereby incorporated by reference and made
a part hereof for all purposes. In addition, as used in this Ordi-
nance, the following terms shall have the meanings set forth below,
unless the text hereof specifically indicates otherwise
(a) The term "Additional Obligations" shall mean the revenue
bonds, notes or other obligations which the City reserves the right
__ to issue in the future on a parity with the Previously Issued
Subordinate Lien Obligations and the Obligations, as provided in
this Ordinance
(b) The term "Master Ordinance" shall have the same meaning
given said term in the preamble to this Ordinance.
(c) The term "MSRB" means the Municipal Securities Rulemaking
Board.
(d) The term "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.
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(e) The term "Obligations" shall mean the City of Fort Worth,
Texas Water and Sewer System Subordinate Lien Revenue Bonds, Series
1996, authorized by this Ordinance.
(f) The term "Previously Issued Subordinate Lien Obligations"
shall have the same meaning given said term in the preamble to this
Ordinance
(g) The term "Prior Lien Bonds" shall mean the Previously
Issued Parity Bonds and any bonds hereafter issued on a parity
therewith pursuant to the terms of the Master Ordinance.
(h) The term "Prior Lien Obligations" shall mean the Prior
Lien Bonds and any System Obligations.
(i) The term "Required Reserve Amount" shall mean, with
respect to Subordinate Lien Obligations, an amount equal to the
greater of (i) 50% of the average Annual Debt Service Requirements
of the Subordinate Lien Obligations then Outstanding or (ii) 37.5%
of the Annual Debt Service Requirements. of the Subordinate Lien
Obligations to be Outstanding in the Year during which such Annual
Debt Service Requirements are scheduled to be the greatest.
(j) The term "Rule" means SEC Rule 15c2-12, as amended from
time to time.
(k) The term "SEC" means the United States Securities and
Exchange Commission.
(1) The term "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
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time.
(m) The term "Subordinate Lien Obligations" shall mean the
Obligations, the Previously Issued Subordinate Lien Obligations,
and any Additional Obligations.
(n) The term "Subordinate Lien Revenue Bond Ordinance" shall
have the same meaning given said term in the preamble to the
Ordinance.
(o) The term "System" shall mean and include the City's
combined existing water and sewer system, together with all future
extensions, improvements, enlargements, and additions thereto, and
all replacements thereof; provided that, notwithstanding the
foregoing, and to the extent now or hereafter authorized or
permitted by law, the term System shall not include any water or
sewer facilities which are declared by the City not to be a part of
the System and which are acquired or constructed by the City with
the proceeds from the issuance of "Special Facilities Bonds", which
are hereby defined as being special revenue obligations of the City
which are not secured by or payable from the Pledged Revenues as
defined herein, but which are secured by and payable solely from
special contract revenues or payments received from any other legal
entity in connection with such facilities; and such revenues or
payments shall not be considered as or constitute Gross Revenues of
the System, unless and to the extent otherwise provided in the
ordinance or ordinances authorizing the issuance of such "Special
Facilities Bonds"
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(k) The term "System Obligations" shall mean the line of
credit securing the Series A Notes (as defined in the preamble to
this Ordinance); and any obligations of the City hereafter issued
or incurred by the City secured by a lien on and pledge of the
Pledged Revenues superior to the Previously Issued Subordinate Lien
Obligations and the Obligations but subordinate to the Prior Lien
Bonds.
(p) The term "TWDB" shall mean the Texas Water Development
Board, or any successor agency thereto.
(q) The term "year" shall mean the regular fiscal year used
by the City in connection with the operation of the System, which
may be any twelve consecutive months period established by the
City.
Section 8. MASTER ORDINANCE. That the provisions of the
Master Ordinance are hereby incorporated by reference; and by
approving this Ordinance and by issuing the commitment to purchase
the Obligations as described in the preamble to this Ordinance,
TWDB shall be deemed to have accepted such provisions and such
provisions shall apply and govern the Previously Issued Subordinate
Lien Obligations, the Obligations, and any Additional Obligations
hereafter issued on a parity therewith.
Section 9. PLEDGE. That the Subordinate Lien Obligations are
and shall be secured by and payable from a lien on and pledge of
the Pledged Revenues; provided, however, that said lien on and
pledge of the Pledged Revenues shall be junior and subordinate to
the lien on and pledge of the Pledged Revenues to the Prior Lien
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Obligations. In addition, the Pledged Revenues are further pledged
to the establishment and maintenance of the Debt Service Fund and
the Subordinate Lien Reserve Fund as hereinafter provided. The
Subordinate Lien Obligations are and will be secured by and payable
only from the Pledged Revenues in the manner described above, and
are not secured by or payable from a mortgage or deed of trust on
any properties, whether real, personal, or mixed, constituting the
System.
Section 10. DEBT SERVICE FUND. That for the sole purpose of
paying the principal of and interest on all Subordinate Lien
Obligations, as the same come due, there has been created, and
established and maintained on the books of the City, the Debt
Service Fund. Monies in said Fund shall be maintained at an
official depository bank of the City.
__ Section 11 RESERVE FUND. That there has been created, and
established and maintained on the books of the City, a separate
fund to be entitled the "City of Fort Worth, Texas Water and Sewer
System Revenue Bonds Subordinate Lien Reserve Fund" (hereinafter
called the "Subordinate Lien Reserve Fund"). Monies in said Fund
shall be used solely for the purpose of retiring the last of any
Subordinate Lien Obligations as they become due or paying principal
of and interest on any Subordinate Lien Obligations when and to the
extent the amounts in the Debt Service Fund are insufficient for
such purpose. Monies in said Fund shall be maintained at an
official depository bank of the City.
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Section 12. PROJECT FUND. (a) That there is hereby created,
established and maintained on the books of the City, a separate
fund to be entitled the "City of Fort Worth, Texas Water and Sewer
System Series 1996 Subordinate Lien Revenue Bonds Project Fund"
(hereinafter called the "Project Fund"). Monies in said Fund shall
be maintained at an official depository bank of the City.
(b) Except as otherwise provided in Section 15 hereof, the
proceeds of each installment delivery of the Obligations to the
purchaser shall be deposited into the Project Fund and used by the
City for payment of the costs of extending and improving the
System, and the payment of costs associated therewith, including
any costs for engineering, financing, financial consultation,
administrative, auditing and legal expenses
(c) Any surplus proceeds, including the investment earnings
derived from the investment of monies on deposit in the Project
Fund, from the Obligations remaining on deposit in the Project Fund
after completing the improvements and extensions to the System and
upon the completion of the final accounting as described in Section
22 (c) hereof, shall be transferred to the Debt Service Fund to
redeem, in inverse order of maturity, the Obligations owned by
TWDB The foregoing notwithstanding, it is further provided,
however, that any interest earnings on monies on deposit in the
Project Fund which are required to be rebated to the United States
of America pursuant to Section 25 hereof in order to prevent the
Obligations from being arbitrage bonds shall be transferred to the
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"Rebate Fund" hereinafter established and shall not be considered
as interest earnings for' purposes of this .subsection.
(d) The moneys held in said Project Fund shall be held by the
Paying Agent/Registrar and disbursed in accordance with the terms
of the "Special SRF Escrow Agreement", a copy of which in
substantially the form attached to this Ordinance is hereby
approved.
Section 13. DEPOSITS OF PLEDGED REVENUES; INVESTMENTS (a)
That the Pledged Revenues shall be deposited in the Debt Service
Fund and the Subordinate Lien Reserve Fund when and as required by
this Ordinance.
(b) That money in either the Debt Service Fund, the
Subordinate Lien Reserve Fund or the Project Fund may, at the
option of the City, be invested in Eligible Investments; provided
__ that all such deposits and investments shall have a par value (or
market value when less than par) exclusive of accrued interest at
all times at least equal to the amount of money credited to such
Funds, and shall be made in such manner that the money required to
be expended from any Fund will be available at the proper time or
times. Money in the Subordinate Lien Reserve Fund shall not be
invested in securities maturing later than the final maturity of
the Subordinate Lien Obligations secured thereby. Such investments
shall be valued in terms of current market value as of the last day
of each year, except that direct obligations of the United States
(State and Local Government Series) in book-entry form shall be
continuously valued at their par or face principal amount. Such
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investments shall be sold promptly when necessary to prevent any
default in connection with any Subordinate Lien Obligations.
Section 14. FUNDS SECURED. That money in all such Funds, to
the extent not invested, shall be secured in the manner prescribed
by law for securing funds of the City.
Section 15. DEBT SERVICE REQUIREMENTS. (a) That promptly
after the delivery of any installment of the Obligations the City
shall cause to be deposited to the credit of the Debt Service Fund
any accrued interest received from the sale and delivery thereof,
and any such deposit shall be used to pay part of the interest next
coming due on the Obligations.
(b) That in addition to all amounts heretofore required to be
deposited to the credit of the Debt Service Fund, the City shall
transfer from the Pledged Revenues and deposit to the credit of the
Debt Service Fund the amounts, at the times, as follows•
(1) such amounts, deposited in approximately equal
monthly installments on or before the 25th day of each month
hereafter, commencing with the month during which the
Obligations are delivered, or the month thereafter if delivery
is made after the 25th day thereof, as will be sufficient,
together with other amounts, if any, then on hand in the Debt
Service Fund and available for such purpose, to pay the
interest scheduled to accrue and come due on the Obligations
on the next succeeding interest payment date; and
(2) such amounts, deposited in approximately equal
monthly installments on or before the 25th day of each month
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hereafter, commencing with the month during which the
Obligations are delivered, or the month thereafter if delivery
is made after the 25th day thereof, as will be sufficient,
together with other amounts, if any, then on hand in the Debt
Service Fund and available for such purpose, to pay the
principal scheduled to mature and come due on the Obligations
on the next succeeding principal payment date.
SECTION 16. RESERVE REQUIREMENTS. That the City covenants,
subject to the covenants set forth in Section 25 hereof relating to
the tax-exempt status of the Obligations, that the Subordinate Lien
Reserve Fund shall be maintained in an amount no less than the
Required Reserve Amount applicable to the outstanding Previously
Issued Subordinate Lien Obligations, Obligations and Additional
Obligations, to be funded in the manner described below. On or
before the 25th day of each month hereafter, commencing on the 25th
day of the month of the initial delivery of the Obligations, or, if
the initial delivery of any of the Obligations occurs on or after
the 25th day of such month, on the 25th day of the month next
succeeding such initial delivery, there shall be deposited into the
Subordinate Lien Reserve Fund, 1/60th of the Required Reserve
Amount, until the Subordinate Lien Reserve Fund contains the Re-
quired Reserve Amount When and so Long as the money and invest-
ments in the Subordinate Lien Reserve Fund are not less than the
Required Reserve Amount, no deposits need be made to the credit of
the Subordinate Lien Reserve Fund. When and if the Subordinate
Lien Reserve Fund at any time contains less than the Required
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Reserve Amaunt due to any cause or condition other than the
issuance of Additional Obligations, then, subject and subordinate
to making the required deposits to the credit of the Debt Service
Fund, such deficiency shall be made up as soon as possible from the
next available Pledged Revenues, or from any other sources
available for such purpose. The City may, at its option, withdraw
and use for any lawful purpose, all surplus in the Subordinate Lien
Reserve Fund over the Required Amount. The City hereby covenants
that from available moneys it shall deposit to the credit of the
Subordinate Lien Reserve Fund such as is necessary to maintain the
Subordinate Lien Reserve Fund in an amount equal to the Required
Reserve Amount For purposes of this Section 16, "Required
Reserve Amount" shall have the same meaning given said term in the
Master Ordinance, substituting "Subordinate Lien Obligations" for
"Parity Obligations"
Section 17. DEFICIENCIES; EXCESS PLEDGED RE~IENUES. (a) That
if on any occasion there shall not be sufficient Pledged Revenues
to make the required deposits into the Debt Service Fund and the
Subordinate Lien Reserve Fund, then such deficiency shall be made
up as soon as possible from the next available Pledged Revenues, or
from any other sources available for such purpose..
(b) That, subject to making the required deposits to the
credit of the Debt Service Fund and the Subordinate Lien Reserve
Fund when and as required by this Ordinance, or any ordinance
authorizing the issuance of Additional Obligations, the excess
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Pledged Revenues may be used by the City for any lawful purpose not
inconsistent with the City's Charter.
Section 18. PAYMENT. That on or before March 1, 1996, and
semiannually on or before each September I and March 1 thereafter
while any of the Previously Issued Subordinate Lien Obligations,
the Obligations or Additional Obligations are outstanding and
unpaid, the City shall make available to the Paying Agent/Registrar
therefor, out of the Debt Service Fund (and the Subordinate Lien
Reserve Fund, if necessary) money sufficient to pay such interest
on and such principal of the Previously Issued Subordinate Lien
Obligations, the Obligations (if necessary) and Additional
Obligations as shall become due and mature on such dates, respec-
tively, at maturity or by redemption prior to maturity. The Paying
Agent/Registrar shall destroy all paid Obligations and furnish the
__ City with an appropriate certificate of cancellation or destruc-
tion
Section 19 FINAL DEPOSITS; GOVERNMENT OBLIGATIONS (a)
That any Subordinate Lien Obligation shall be deemed to be paid,
retired and no longer outstanding within the meaning of this
Ordinance when payment of the principal of, redemption premium, if
any, on such Subordinate Lien Obligation, plus interest thereon to
the due date thereof (whether such due date be by reason of
maturity, upon redemption, or otherwise) either (i) shall have been
made or caused to be made in accordance with the terms thereof
(including the giving of any required notice of redemption), or
(ii) shall have been provided for by irrevocably depositing with,
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or making available to, a paying agent (or escrow agent) therefor,
in trust and irrevocably set aside exclusively for such payment,
(1) money sufficient to make such payment or (2) Government
Obligations, as hereinafter defined in this Section, certified by
an independent public accounting firm of national reputation, to
mature as to principal and interest in such amounts and at such
times as will insure the availability, without reinvestment, of
sufficient money to make such payment, and all necessary and proper
fees, compensation, and expenses of such paying agent pertaining to
the Subordinate Lien Obligations with respect to which such deposit
is made shall have been paid or the payment thereof provided for to
the satisfaction of such paying agent. At such time as a
Subordinate Lien Obligation shall be deemed to be paid hereunder,
as aforesaid, it shall no longer be secured by or entitled to the
benefit of this Ordinance or a lien on and pledge of the Pledged
Revenues, and shall be entitled to payment solely from such money
or Government Obligations
(b) That any moneys so deposited with a paying agent may, at
the direction of the City, also be invested in Government
Obligations, maturing in the amounts and times as hereinbefore set
forth, and all income from all Government Obligations in the hands
of the paying agent pursuant to this Section which is not required
for the payment of the Subordinate Lien Obligations, the redemption
premium, if any, and interest thereon, with respect to which such
money has been so deposited, shall be remitted to the City.
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(c) That the City covenants that no deposit will be made or
accepted under clause (a)(ii) of this Section and no use made of
any such deposit which would cause such Subordinate Lien
Obligations to be treated as arbitrage bonds within the meaning of
section 148 of the Code
(d) That for the purpose of this Section, the term
"Government Obligations" shall mean direct obligations of the
United States of America, including obligations the principal of
and interest on which are unconditionally guaranteed by the United
States of America.
(e) That notwithstanding any other provisions of this
Ordinance, all money or Government Obligations set aside and held
in trust pursuant to the provisions of this Section for the payment
of Previously Issued Subordinate Lien Obligations, Obligations and
__ Additional Obligations, the redemption premium, if any, and
interest thereon, shall be applied to and used for the payment of
such Previously Issued Subordinate Lien Obligations, Obligations
and Additional Obligations, the redemption premium, if any, and
interest thereon.
Section 20. ADDITIONAL OBLIGATIONS (a) That the City shall
have the right and power at any time and from time to time and in
one or more series or issues, to authorize, issue, and deliver
Prior Lien Obligations, in the manner and for the purposes
described in the Master Ordinance.
(b) That the City shall have the right and power at any time
and from time to time and in one or more series or issues, to
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authorize, issue and deliver Additional Obligations, in accordance
with law, in any amounts, for purposes of extending, improving or
repairing the System or for the purpose of refunding of any
Previously Issued Subordinate Lien Obligations, Obligations,
Additional Obligations or other obligations of the City incurred in
connection with the ownership or operation of the System Such
Additional Obligations, if and when authorized, issued and
delivered in accordance with this Ordinance, shall be secured by
and made payable equally and ratably on a parity with the
Previously Issued Subordinate Lien Obligations, and the Obliga-
tions, and all other outstanding Additional Obligations, from a
lien on and pledge of the Pledged Revenues.
(c) That the Debt Service Fund and the Subordinate Lien
Reserve Fund established by this Ordinance shall secure and be used
to pay all Additional Obligations as well as the Previously Issued
Subordinate Lien Obligations and the Obligations However, each
ordinance under which Additional Obligations are issued shall
provide and require that, in addition to the amounts required by
the provisions of this Ordinance and the provisions of any other
ordinance or ordinances authorizing Additional Obligations to be
deposited to the credit of the Debt Service Fund, the City shall
deposit to the credit of the Debt Service Fund at least such
amounts as are required for the payment of all principal of and
interest on said Additional Obligations then being issued, as the
same come due; and that the aggregate amount to be accumulated and
maintained in the Subordinate Lien Reserve Fund shall be increased
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(if and to the extent necessary) to an amount not less than the
average annual principal and interest requirements of all
Previously Issued Subordinate Lien Obligations, Obligations and
Additional Obligations which will be outstanding after the issuance
and delivery of the then proposed Additional Obligations; and that
the required additional amount shall be so accumulated by the
deposit in the Subordinate Lien Reserve Fund of all or any part of
said required additional amount in cash immediately after the
delivery of the then proposed Additional Obligations, or, at the
option of the City, by the deposit of said required additional
amount (or any balance of said required additional amount not
deposited in cash as permitted above) in monthly installments, made
on or before the 25th day of each month following the delivery of
the then proposed Additional Obligations, of not less than 1/60 of
said required additional amount (or 1/60 of the balance of said
requited additional amount not deposited in cash as permitted
above) .
(d) That all calculations of average annual principal and
interest requirements made pursuant to this Section shall be made
as of and from the date of the Additional Obligations then proposed
to be issued.
Section 21. FURTHER REQUIREMENTS FOR ADDITIONAL OBLIGATIONS.
That Additional Obligations shall be issued only in accordance with
this Ordinance, but notwithstanding any provisions of this
Ordinance to the contrary, no installment, Series or issue of
Additional Obligations shall be issued or delivered unless:
-40-
(a) The Mayor and the City Secretary of the City sign a
written certificate to the effect that the City is not in default
as to any covenant, condition or obligation in connection with all
outstanding Prior Lien Obligations, Previously Issued Subordinate
Lien Obligations, Obligations and Additional Obligations, and the
ordinances authorizing same, and that the Debt Service Fund and the
Subordinate Lien Reserve Fund each contains the amount then
required to be therein.
(b) An independent certified public accountant, or
independent firm of certified public accountants, signs a written
certificate to the effect that, during either the next preceding
year, or any twelve consecutive calendar month period ending not
more than ninety days prior to the date of the then proposed
Additional Obligations, the Net Revenues were, in the opinion
thereof, at least equal to (1) 1.25 ,times the average annual
principal and interest requirements and (2) 1 1 times the principal
and interest requirements for the year during which such
requirements are scheduled to be the greatest (each computed on a
fiscal year basis), of all Prior Lien Obligations, Previously
Issued Subordinate Lien Obligations, Obligations and Additional
Obligations to be outstanding after the issuance of the then
proposed Additional Obligations, reasonably anticipated to be paid
from the Pledged Revenues.
Section 22. GENERAL COVENANTS. That the City further
covenants and agrees that in accordance with and to the extent
required or permitted by law:
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(a) FURTHER ENCUMBRANCE. It, while the Previously Issued
Subordinate Lien Obligations, the Obligations or any Additional
Obligations are outstanding and unpaid, will not additionally
encumber the Pledged Revenues in any manner, except in the manner
permitted by the Master Ordinance with respect to obligations of
the City with a lien on and pledge of the Pledged Revenues superior
to that securing the Subordinate Lien Obligations and except as
permitted in this Ordinance in connection with Additional
Obligations, unless said encumbrance is made junior and subordinate
in all respects to the liens, pledges, covenants and agreements of
this Ordinance; but the right of the City to issue revenue bonds
payable from a lien on the Pledged Revenues junior and subordinate
in all respects to the Previously Issued Subordinate Lien
Obligations, the Obligations and any Additional Obligations is
specifically recognized and retained.
(b) AUDITS. For so long as the State of Texas owns any of
the Subordinate Lien Obligations, the City shall mail a copy of the
audit required by the Master Ordinance to the TWDB In addition,
monthly operating statements for the System shall be delivered to
the TWDB as long as the State of Texas owns any of the Subordinate
Lien Obligations, and the monthly operating statement shall be in
such detail as requested by the Development Fund Manager of the
TWDB until this requirement is waived by said Development Fund
Manager
(c) FINAL ACCOUNTING. The City shall render a final
accounting to the TWDB in reference to the total cost incurred by
-42-
the City for improvements and extensions to the System which were
financed by the issuance of the Obligations, together with a copy
of "as built" plans of such improvements and extensions upon
completion
(d) COMPLIANCE WITH THE TEXAS WATER DEVELOPMENT BOARD'S RULES
AND REGULATIONS The City covenants to comply with the rules and
regulations of the TWDB, and to maintain insurance on the System in
such amount as may be required by TWDB.
Section 23. AMENDMENT OF ORDINANCE. (a) That the owners of
Previously Issued Subordinate Lien Obligations, the Obligations and
Additional Obligations aggregating in principal amount 51% of the
aggregate principal amount of then outstanding Previously Issued
Subordinate Lien Obligations, the Obligations and Additional
Obligations shall have the right from time to time to approve any
amendment to this Ordinance which may be deemed necessary or
desirable by the City, provided, however, that without the consent
of the owners of all of the Previously Issued Subordinate Lien
Obligations, the Obligations and Additional Obligations at the time
outstanding, nothing herein contained shall permit or be construed
to permit the amendment of the terms and conditions in this
Ordinance or in the Previously Issued Subordinate Lien Obligations,
the Obligations or Additional Obligations so as to:
(1) Make any change in the maturity of the outstanding
Previously Issued Subordinate Lien Obligations, the
Obligations or Additional Obligations;
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(2) Reduce the rate of interest borne by any of the
outstanding Previously Issued Subordinate Lien
Obligations, Obligations or Additional Obligations;
(3) Reduce the amount of the principal payable on the
outstanding Previously Issued Subordinate Lien
Obligations, Obligations or Additional Obligations,
(4) Modify the terms of payment of principal of or interest
on the outstanding Previously Issued Subordinate Lien
Obligations, Obligations or Additional Obligations, or
impose any conditions with respect to such payment;
(5) .Affect the rights of the owners of less than all of the
Previously Issued Subordinate Lien Obligations,
Obligations and Additional Obligations then outstanding;
(6) Affect the rights of the owners of the Prior Lien
___ Obligations;
(7) Change the minimum percentage of the principal amount of
Previously Issued Subordinate Lien Obligations,
Obligations and Additional Obligations necessary for
consent to such amendment
(b) That if at any time the City shall desire to amend the
Ordinance under this Section, the City shall cause notice of the
proposed amendment to be published in a financial newspaper or
journal published in The City of New York, New York, once during
each calendar week for at least two successive calendar weeks.
Such notice shall briefly set forth the nature of the proposed
amendment and shall state that a copy thereof is on file at the
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principal office of the Paying Agent/Registrar for inspection by
all holders of Prior Lien Obligations, Previously Issued
Subordinate Lien Obligations, Obligations and Additional
Obligations. Such publication is not required, however, if notice
in writing is given to each holder of Prior Lien Obligations,
Previously Issued Subordinate Lien Obligations, Obligations and
Additional Obligations.
(c) That whenever at any time not less than thirty days, and
within one year, from the date of the first publication of said
notice or other service of written notice the City shall receive an
instrument or instruments executed by the owners of at least 51~ in
aggregate principal amount of all Previously Issued Subordinate
Lien Obligations, Obligations and Additional Obligations then out-
standing, which instrument or instruments shall refer to the
proposed amendment described in said notice and which specifically
consent to and approve such amendment in substantially the form of
the copy thereof on file with the Paying Agent/Registrar, the City
Council may pass the amendatory ordinance in substantially the same
form.
(d} That upon the passage of any amendatory ordinance
pursuant to the provisions of this Section, this Ordinance shall be
deemed to be amended in accordance with such amendatory ordinance,
and the respective rights, duties and obligations under this
Ordinance of the City and all the owners of then outstanding
Previously Issued Subordinate Lien Obligations, Obligations and
Additional Obligations and all future Additional Obligations shall
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thereafter be determined, exercised and enforced hereunder, subject
in all respects to such amendments.
(e) That any consent given by the owner of a Previously
Issued Subordinate Lien Obligation, Obligation or Additional
Obligation pursuant to the provisions of this Section shall be
irrevocable for a period of six months from the date of the first
publication of the notice provided for in this Section, and shall
be conclusive and binding upon all future owners of the same
Previously Issued Subordinate Lien Obligation, Obligation or
Additional Obligation during such period. Such consent may be
revoked at any time after six months from the date of the first
publication of such notice by the owner who gave such consent, or
by a successor in title, by filing notice thereof with the Paying
Agent/Registrar and the City, but such revocation shall not be
effective if the owners of 51% in aggregate principal amount of the
then outstanding Previously Issued Subordinate Lien Obligations,
Obligations and Additional Obligations as in this Section defined
have, prior to the attempted revocation, consented to and approved
the amendment.
(f) That for the purpose of this Section, the ownership of
Previously Issued Subordinate Lien Obligations, Obligations or
Additional Obligations shall be as shown by the registration books
of the registrar therefor
(g) The foregoing provisions of this Section notwithstanding,
the City by action of the City Council may amend this Ordinance for
any one or more of the following purposes
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(1•) To add to the covenants and agreements of the City
in this Ordinance contained, other covenants and agreements
thereafter to be observed, grant additional rights or remedies
to bondholders or to surrender, restrict or limit any right or
power herein reserved to or conferred upon the City;
(2) To make such provisions for the purpose of curing
any ambiguity, or curing, correcting or supplementing any
defective provision contained in this Ordinance, or in regard
to clarifying matters or questions arising under this
Ordinance, as are necessary or desirable and not contrary to
or inconsistent with this Ordinance and which shall not
adversely affect the interests of the owners of the Prior Lien
Obligations, the Obligations or Additional Obligations;
(3) To modify any of the provisions of this Ordinance in
any other respect whatever, provided that (i) such
modification shall be, and be expressed to be, effective only
after all Obligations and each series of Additional
Obligations outstanding at the date of the adoption of such
modification shall cease to be outstanding, and (ii) such
modification shall be specifically referred to in the text of
all Additional Obligations issued after the date of the
adoption of such modification.
Section 24 DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED
BONDS (a) REPLACEMENT BONDS. In the event any outstanding
Obligation is damaged, mutilated, lost, stolen, or destroyed, the
Paying Agent/Registrar shall cause to be printed, executed, and
delivered, a new bond of the same principal amount, maturity, and
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interest rate, as the damaged, mutilated, lost, stolen, or
destroyed Obligation, in replacement for such Obligation in the
manner hereinafter provided.
(b) APPLICATION FOR REPLACEMENT BONDS. Application for
replacement of damaged, mutilated, lost, stolen, or destroyed
Obligations shall be made to the Paying Agent/Registrar In every
case of loss, theft, or destruction of an Obligation, the applicant
for a replacement bond shall furnish to the City and to the Paying
Agent/Registrar such security or indemnity as may be 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 an Obligation, the applicant shall furnish to the
City and to the Paying Agent/Registrar evidence to their satis-
faction of the loss, theft, or destruction of such Obligation, as
._ the case may be. In every case of damage or mutilation of an
Obligation, the applicant shall surrender to the Paying
Agent/Registrar for cancellation the Obligation so damaged or muti-
lated
(c) NO DEFAULT OCCURRED. Notwithstanding the foregoing
provisions of this Section, in the event any such damaged,
mutilated, lost, stolen or destroyed Obligation 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
Obligation, the City may authorize the payment of the same (without
surrender thereof except in the case of a damaged or mutilated
Obligation) instead of. issuing a replacement Obligation, provided
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security or indemnity is furnished as above provided in this
Section
(d) CHARGE FOR ISSUING REPLACEMENT BONDS. Prior to the
issuance of any replacement bond, the Paying Agent/Registrar shall
charge the owner of such Obligation with all legal, printing, and
other expenses in connection therewith. Every replacement bond
issued pursuant to the provisions of this Section by virtue of the
fact that any Obligation is lost, stolen, or destroyed shall
constitute a contractual obligation of the City whether or not the
lost, stolen, or destroyed Obligation 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 Obligations duly issued under this Ordinance.
(e) AUTHORITY FOR ISSUING REPLACEMENT BONDS. In accordance
with Section 6 of Art. 717k-6, V A.T.C.S., 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, 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 Obligations issued in exchange for other Obliga-
tions.
Section 25. TAX COVENANTS The Issuer covenants to take any
action to assure, or refrain from any action which would adversely
affect, the treatment of the Obligations as obligations described
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in section 103 of 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 Obligations (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 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 Obligations, in
contravention 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 Obligations (less
amounts deposited into a reserve fund, if any) then the amount
in excess of 5 percent is used for a "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 Obligations (less amounts deposited into a
reserve fund, if any) is directly or indirectly used to
finance loans to persons, other than state or local
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governmental units, in contravention of section 141(c) of the
Code;
(d) to refrain from taking any action which would
otherwise result in the Obligations 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 Obligations being "federally guaranteed" within the
meaning of section 149(b) of the Code;
(f) to refrain from using any portion of the proceeds of
the Obligations, 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 Obligations, other than investment property
acquired with --
(1) proceeds of the Obligations invested for a
reasonable temporary period of 3 years or less until such
proceeds are needed for the purpose for which the
Obligations 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 Obligations;
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(g) to otherwise restrict the use of the proceeds of the
Obligations or amounts treated as proceeds of the Obligations,
as may be necessary, so that the Obligations 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 period (beginning on the date of
delivery of the Obligations) an amount that is at least equal
to 90 percent of the "Excess Earnings", within the meaning of
section 148 (f) of the Code and to pay to the United States of
America, not later than 60 days after the Obligations have
been paid in full, 100 percent of the amount then required to
be paid as a result of Excess Earnings under section 148 (f) 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 to the date of the issuance of
the 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 are hereafter promulgated which modify or
expand provisions of the Code, as applicable to the Bonds, the
Issuer will not be required to comply with any covenant contained
-52-
herein to the extent that such failure to comply, in the opinion of
nationally-recognized bond counsel, will not adversely affect the
exemption from federal income taxation of interest on the 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 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 Bonds
under section 103 of the Code. In furtherance of the foregoing,
the Mayor, the City Manager, any Assistant City Manager, and the
Director of Fiscal Services may execute any certificates 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 Bonds. In order to
facilitate compliance with the above clause (h), a "Rebate Fund" is
hereby established by the City for the sole benefit of the 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 Bonds. The Rebate Fund is established for
the additional purpose of compliance with section 148 of the Code.
Furthermore, the Issuer will take all reasonable actions
specified in any written instructions provided to the Issuer by
TWDB to assure that the interest on said bonds, or any bonds issued
to refund said bonds, shall be excludable from the gross income of
the holders there for federal income tax purposes.
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Section 26. APPROVAL AND REGISTRATION OF BONDS. That the
proper officials of the City are hereby authorized to have control
of the Obligations and all necessary records and proceedings
pertaining to the Obligations 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
Obligations, said Comptroller of Public Accounts (or a deputy
designated in writing to act for said Comptroller) shall manually
sign the Comptroller's Registration Certificate accompanying the
Obligations, and the seal of said Comptroller shall be impressed,
or placed in facsimile, on each such certificate
Section 27 SALE. (a) The Obligations are hereby sold to
TWDB for the price of par. The Obligations may be delivered to
-~ TWDB in accordance with the schedule set forth in Section 2 of this
Ordinance, and paid for in whole, or in installments at such times
as shall be approved by the City Manager, provided none of the
Obligations shall be so delivered without the City's receiving full
payment therefor. The Obligations initially delivered shall be
registered in the name of the Texas Water Development Board.
(b) The City hereby authorizes the City Manager to approve
and execute such documents necessary to effect the delivery of the
Obligations, including, without limitation, any agreements,
instruments or documents to obtain a municipal bond insurance
policy from Financial Security Assurance, Inc. ("FSA"). The City
authorizes the printing on the Obligations of any statement of
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insurance provided by FSA in connection with the issuance of said
insurance policy.
(c) The Paying Agent/Registrar shall complete the "Date of
Delivery" on each Obligation delivered to TWDB as provided in
Section 5(e) of this Ordinance, and interest on the Obligations so
delivered shall commence from such date.
(d) It is the intent of the parties to the sale of the
Obligations that if TWDB ever determines to sell all or a part of
the Obligations, it shall notify the City at least 60 days prior to
the sale of the Obligations of the decision to so sell the
Obligations.
(e) To the extent that the provisions of this Ordinance are
inconsistent or conflict with the provisions of the ordinances
authorizing the Previously Issued Subordinate Lien Obligations,, the
provisions of this Ordinance shall control, and by issuing its
commitment to purchase the Obligations, TWDB shall be deemed to
have consented to the applicability of such provisions set forth in
this Ordinance to the Subordinate Lien Obligations.
Section 28. COMPLIANCE WITH RULE 15c2-12. (a) Annual
Reports. (i) The City shall provide annually to each NRMSIR and
any SID, within six months after the end of each fiscal year as
described in subsection (e) of this Section, financial information
and operating data with respect to the City of the general type
included in the final Application submitted to TWDB. Any financial
statements to be so provided shall be (1) prepared in accordance
-55-
with the accounting principles described in subsection (e) of this
Section, or such other accounting principles as the City may be
required to employ from time to time thereafter 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 within such
period 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 become 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 City agrees to provide financial
information and operating data of a nature consistent with that
provided by the City in connection with the issuance of Additional
Priority Obligations to which the Rule applies. The financial
information and operating data to be provided pursuant to this
Section may be 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.
-56-
(b) Material Event Notices. 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 Obligations, 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 Obligations;
7. Modifications to rights of holders of the
Obligations;
8. Obligation calls;
9. Defeasances;
10. Release, substitution, or sale of property securing
repayment of the Obligations; and
11. Rating changes.
The City shall notify any SID and either each NRMSIR or the MSRB,
in a timely manner, of any failure by the City to provide financial
information or operating data in accordance with subsection (a) of
this Section by the time required by such subsection.
-57-
(c) Limitations, Disclaimers, and Amendments. (i) The City
shall be obligated to observe and perform the covenants specified
in this Article for so long as, but only for so long as, the City
remains an "obligated person" with respect to the Obligations
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 Obligations no longer to be
outstanding.
(ii) The provisions of this Section are for the sole benefit
of the registered owners and beneficial owners of the Obligations
and the beneficial owners of TWDB's bonds under the Rule, 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 it has expressly agreed to provide pursuant to this Section
and does .not hereby undertake to provide any other information that
may be relevant or material to a complete presentation of the
City's financial results, condition, or prospects or hereby
undertake 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 Obligations at any future date.
(iii) UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE
REGISTERED OWNER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER
-58-
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 ARTICLE, 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 PERFORMANCE.
(iv) No default by the City in observing or performing its
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 may be amended by the City
from time to time to adapt to changed circumstances that arise 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 Obligations in
the primary offering of the Obligations 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 registered owners 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
-59-
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t
the outstanding Obligations consent to such amendment or (b) a
person that is unaffiliated with the City (such as nationally
recognized bond counsel) determined that such amendment will not
materially impair the interest of the registered owners and
beneficial owners of the Obligations. If the City so amends the
provisions of this Section, it shall include with any amended
financial information or operating data next provided in accordance
with subsection (a) 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 Obligations in the primary offering of the Obligations.
Section 29. IMMEDIATE EFFECT. That this Ordinance shall be
effective immediately from and after its passage in accordance with
the provisions of Section 2 of Chapter 25 of the Charter of the
City, and it is accordingly so ordained.
-60-
,~:
ADOPTED this 11th day of June, 1996.
ATTEST:
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City Secretary
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Mayor
APPROVED AS TO FORM AND LEGALITY:
City Attorney
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-61-
City of Fort Worth Texas
Mayor and Council Communication
DATE R$FERENC$ NUMBER LOG NAME PAG$
06/11 /96 **G-X1494 13SALE 1 of 1
sUBJECT ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF CITY OF FORT WORTH,
TEXAS WATER AND SEWER SYSTEM SUBORDINATE LIEN REVENUE BONDS, SERIES
1996
RECOMMENDATION
It is recommended the City Council adopt the attached ordinance authorizing the issuance and
sale of 517,120,000 in Water and Sewer System subordinate lien revenue bonds to the Texas
Water Development Board
DISCUSSION
On January 23, 1996, City Council approved M&C G-11382 authorizing the filing of an
application with the Texas Water Development Board (TWDB) for a loan under the State
Revolving Loan Program On May 14, 1996, City Council approved M&C G-11476 directing
publication of a notice of intention to issue up to 517,120,000 in bonds The proceeds of this
loan will be used by the Water and Sewer Department in the construction of improvements to
the wastewater collection and treatment systems, specifically for the West Fork Collector
(Contracts 2 and 3) and the Village Creek Digester Gas Upgrade The interest rate on this loan
will be approximately 1 % lower than market rates, resulting in annual savings of approximately
5171,200
The City currently has four loans outstanding to the TWDB
ISSUE ORIGINAL AMOUNT OUTSTANDING 5/1 /96
Series 1989 5 33,300,000 5 26,500,000
Series 1991 16,155,000 14,700,000
Series 1992 12,000,000 10,800,000
' Series 1995 18,880,000 18,880,000
TOTAL 5 70,880,000
FISCAL INFORMATION/CERTIFICATION
The Director of Fiscal Services certifies that funding for the annual debt service payments on this
loan will be available in the operating budget, as appropriated, in the Water and Sewer Fund
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
Charles Boswell 8511 APPROVED
Originating Department Head: CITY
CoUNC~~
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Jim Keyes 8518 (from)
~~ 11 1996
For Additional Information •
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Jim Keyes 8518 t
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