HomeMy WebLinkAboutOrdinance 0837
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AN ORDINANCE by the City Council of the City of
North Richland Hills, Texas, authorizing the
issuance of $2,400,000 "CITY OF NORTH RICHLAND
HILLS, TEXAS, WATERWORKS AND SEWER SYSTEM
REVENUE BONDS, SERIES 1980", dated September 1,
1980, to provide funds for improving and
extending the City·s Waterworks and Sanitary Sewer
System, to wit: extensions and improvements to
water distribution lines and facilities, as
authorized by the General Laws of the State of
Texas, particularly Articles 1111 et seq. and 2368a,
V.A.T.C.S.; prescribing the form of the bonds and
the form of the interest coupons; pledging the net
revenues of the City's combined Waterworks and
Sanitary Sewer System to the payment of the principal
of and interest on said bonds; enacting provisions
incident and related to the subject and purpose of
this ordi.nance; and providing an effective date.
WHEREAS, the City Council of the City of North Richland
Hills, Texas, has determined that revenue bonds in the aggregate
principal amount of $2,400,000 should be issued to provide funds
for improving and extending the City's Waterworks and Sanitary
Sewer System, to wit: extensions and improvements to water dis-
tribution lines and facilities, which bonds, together with the
City's outstanding and unpaid revenue bonds (hereinafter defined
and identified in Section 9, and referred to, as the "previously
issued bonds") shall be payable from and secured by a first lien
on and pledge of the net revenues of the City's combined Waterworks
and Sanitary Sewer System; and
WHEREAS, noti.ce of this Council's intention to issue said
revenue bonds (stating the date, time and place the Council
proposed to pass the ordinance authorizing the issuance of
such bonds, the purpose for issuing the same, the maximum amount
proposed to be issued, the maximum interest rate the bonds are
to bear and the maximum maturity date thereof) has been published
in , a newspaper published
and having general circulation in the City of North Rich1and
Hills, Texas, on , 1980 and ,
1980, the date of the first publication being at least fourteen----
(14) days prior to the date stated therein for the passage of
this ordinance; and
WHEREAS, no written petition has been filed with the City
Secretary or any other official of the City requesting that the
question of the issuance of the bonds herein authorized be sub-
mitted to a referendum vote; and
WHEREAS, this Council hereby finds and determines that such
revenue bonds can be issued on a parity with and equally secured
in the same manner as the previously issued bonds in that (i) the
City is not now in default as to any covenant, condition or
obligation prescribed in the ordinances authorizing the iSS1lance
of the previously issued bonds, (ii) each of the Funds creat2d
and established for the payment and security of the previously
issued bonds contains the amount of money now required to be on
deposit therein; (iii) the net earnings of the City's Waterworks
and Sanitary Sewer System for any consecutive twelve months out
of the fifteen IDonths next preceding the date of the bonds herein
authorized or for the fiscal year next preceding the date of the
bonds herein authorized, are equal to at least 1.30 times the
principal and interest requirements of all the previously issued
bonds and the bonds herein authorized to be issued for the year
when such requirements are the greatest, as shown by a report of
Certified Public Accountant, (iv) the bonds herein authorized to
be issued shall mature on September 1 in each of theyears in
which they are scheduled to mature, (v) this ordinance makes pro-
vision for the accumulation in the Interest and Sinking Fund of
---
amounts sufficient to pay the principal of and interest on the
bonds herein authorized to be issued; and (vi) this ordinance
makes provision for the amount to be accumulated and maintained
in the Reserve Fund to be equal to not less than the average
annual requirements for the payment of principal of and interest
on all bonds to be secured by a first lien on and pledge of the
net revenues of the City's Waterworks and Sanitary Sewer System,
after giving effect to the issuance of the bonds herein authorized
to be issued, and any additional Reserve Fund amount thus required
shall be accumulated within not more than five years and one month
from the date of passage of this ordinance; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH
RICHLAND HILLS, TEXAS:
SECTION 1: Authorization - Principal Amount - Designation.
That in order to borrow the sum of TWO MILLION FOUR HUNDRED
THOUSAND DOLIáRS ($2,400,000) for the purpose of providing funds
for improving and extending the City's Waterworks and Sanitary
Sewer System, to wit: extensions and improvements to water dis-
tribution lines and facilities, the City Council of the City of
North Richland Hills, Texas, pursuant to the General Laws of the
State of Texas, particularly Articles 1111 et seq. and 2368a,
V.A.T.C.S., has determined that there shall be issued and there
is hereby ordered to be issued a series of coupon bonds, to be
designated "CITY OF NORTH RICHLAND HILLS, TEXAS, WATERWORKS AND
SEWER SYSTEM REVENUE BONDS, SERIES 1980", in the aggregate princi-
pal amount of TWO MILLION FOUR HUNDRED THOUSAND DOLLARS
($2,400,000), which bonds, together with the outstanding and
unpaid previously issued bonds, shall be payable as to both
principal and interest solely from and equally secured by a first
lien on and pledge of the net revenues of the City's combined
Waterworks and Sanitary Sewer System
SECTION 2: Date - Numbers - Maturity - Interest Rates - Option.
That said bonds snarr-bé dated -September 1, 1980; shall be numbered
consecutively from One (1) through Four Hundred Eighty (480); shall
each be in the denomination of Five Thousand Dollars ($5,000); and
shall become due and payable serially on September 1 in each of the
years and bear interest at the per annum rates in accordance with
the following schedule:
BOND NUMBERS INTEREST
(All Inclusive) MATURITY AHOUNT RATE
1 to 6 1981 $ 30,000 %
7 to 13 1982 35,000 10
14 to 20 1983 35,000 %
21 to 28 1984 40,000 %
29 to 37 1985 45,000 crt
/0
38 to 47 1986 50,000 --i~
48 to 58 1987 55,000 %
59 to 70 1988 60,000 %
71 to 83 1989 65,000 %
84 to 98 1990 75,000 10
99 to 115 1991 85,000 ------a-:
/0
116 to 133 1992 90,000 %
134 to 154 1993 105,000 %
155 to 175 1994 105,000 10
176 to 199 1995 120,000 %
200 to 225 1996 130,000 %
226 to 253 1997 140,000 %
254 to 284 1998 155,000 %
285 to 318 1999 170,000 %
319 to 355 2000 185,000 %
356 to 395 2001 200,000 %
396 to 437 2002 210,000 %
L.-38 to 480 2003 215,000 %
PROVIDED, HOtiEVER, that the City of North Richland Hills,
Texas reserves the right to redeem the bonds of this series
maturing on September 1, 1992, and subsequent, in whole or any
part thereof, on September 1, 1991, or on any interest payment
date thereafter, at the price of par and accrued interest to the
date fixed for redemption; PROVIDED, FL~THER, that at least thirty
(30) days prior to a date any of said bonds are to be redeemed, a
notice of redemption, signed by the City Secretary (specifying the
serial numbers and amount of bonds to be redeemed), shall have
been filed with THE FORT WORTH NATIONAL BANK, Fort Worth, Texas
(the paying agent named in each of said bonds); and if the City
shall have made available by the redemption date an amount
sufficient to pay the bonds called for redemption, any bond or
bonds not presented for redemption pursuant to such notice
shall cease to bear interest from and after the date so
fixed for redemption.
SECTION 3: Interest. That said bonds shall bear
interest from date to mãturity, or the redemption thereof in
accordance with the terms prescribed therefor, at the per
annum rates shown above, such interest to be evidenced by
proper coupons attached to each of said bonds, and said
interest shall be payable on March 1, 1981, and semiannually
thereafter on September 1 and March 1 in each year.
SECTION 4: Place of Payment. That both principal of
and interest on this issue of bonds shall be payable in
lawful money of the United States of America, without exchange
or collection charges to the owner or holder, at THE FORT_WORTH
NATIONAL BANK, Fort Worth, Texas, upon presentation and
surrender of bonds or proper coupons.
SECTION 5: Execution of Bonds and Coupons. That the
seal or-saidCity-may be impressed on each of said bonds, or
in the alterative, a facsimile of such seal may be printed
on the said bonds. The bonds and interest coupons appurtenant
thereto may be executed by the imprinted facsimile signatures
of the Mayor and City Secretary of the City and execution in
such manner shall have the same effect as if such bonds and
coupons had been signed by the Mayor and City Secretary in
person by their manual signatures. Inasmuch as such bonds
are required to be registered by the Comptroller of Public
Accounts for the State of Texas, only his signature (or that
of a deputy designated in writing to act for the Comptroller)
shall be required to be manually subscribed to such bonds in
connection with his registration certificate to appear
thereon, as hereinafter provided; all in accordance with
the provisions of Article 717j-l, V.A.T.C.S.
SECTION 6: Form of Bonds. That the form of said
bonds shall be substantially as follows:
NO.
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF NORTH RICHLAND HILLS, TEXAS,
WATERWORKS AND SEWER SYSTEM REVENUE BOND,
SERIES 1980
$5,000
FOR VALUE RECEIVED, the City of North Richland Hills, a
municipal corporation of the State of Texas, hereby acknowledges
itself indebted to and promises to pay to bearer, as hereinafter
stated, on the FIRST DAY OF SEPTEMBER, , the sum of
FIVE THOUSAND DOLLARS
($5,000), in lawful money of the United States of America,
with interest thereon from the date hereof to maturity, or the
redemption hereof in accordance with the terms prescribed
therefor, at the rate of PER CENTUM
( %) per annum, such interest being payable on March 1, 1981,
and semiannually thereafter on September 1 and March 1 in each
year and evidenced by interest coupons attached hereto.
BOTH PRINCIPAL AND INTEREST are payable only upon
presentation and surrender of this bond and the interest
coupons hereto attached as the same severally become due at
THE FORT WORTH NATIONAL BANK, Fort Worth, Texas, without
exchange or collection charges to the owner or holder, and
the bearer of this bond and the appurtenant coupons shall be
deemed the absolute owner thereof for purposes of receiving
payment and all other purposes, and neither the City nor the
aforementioned place of payment shall be affected by any
notice to the contrary.
THIS BOND is one of a series of bonds, dated September 1,
1980, numbered consecutively from One (1) through Four Hundred
Eighty (480); each in the denomination of Five Thousand
Dollars ($5,000), aggregating in principal amount TWO MILLION
FOUR HUNDRED THOUSAND DOLLARS ($2,400,000), issued to provide
funds for improving and extending the City's Waterworks and
Sanitary Sewer System, to wit: extensions and improvements to
water distribution lines and facilities, in accordance with
the Constitution and laws of the State of Texas, particularly
Articles 1111 et seq. and 2368a, V.A.T.C.S., and pursuant to
an ordinance passed by the City Council of the City of
North Richland Hills, Te~as, and duly recorded in the Minutes
of said City Council.
THE BO~~S OF SAID SERIES maturing September 1, 1992, and
subsequent, may be redeemed prior to their scheduled maturity
at the option of the City, in whole or any part thereof, on
September 1, 1991, or on any interest payment date thereafter
at the price of par and accrued interest to the date of
redemption; PROVIDED, HOWEVER, that at least thirty (30)
days prior to a date any of said bonds are to be redeemed, a
notice of redemption, signed by the Cit:y Secretary (specifying
the serial nuD1bers and amount of bonds to be redeemed),
shall have been filed with THE FORT WORTH NATIONAL BANK, Fort
Worth, Texas; and if the City shall have made available by
the redemption date an amount sufficient to pay the bonds
called for redemption, any bond or bonds not presented for
redemption pursuant to such notice shall cease to bear
interest from and after the date so fixed for redemption.
THIS BOND and the series of which it is a part constitute
special obligations of the City of North Richland Hills, Texas,
and, together with the outstanding and unpaid previously
issued bonds(identified and defined in the ordinance authorizing
this series of bonds), are pa.yable from and secured by a
first lien on and pledge of the net revenues of the City's
combined Waterworks and Sanitary Sewer System; and for a more
caoplete explanation and statement of the revenues pledged to
the payment and security of this bond and the series of which
it is one, reference is hereby made to the ordinance authorizing
the issuance of this series of bonds.
THE CITY expressly reserves the right to issue further
and additional special obligations in all things on a
parity with the outstanding and unpaid previously issued
bonds and the bonds of this series, payable solely from and
equally secured by a first lien on and pledge of the net
revenues of the City's combined Waterworks and Sanitary
Sewer System; PROVIDED, HOWEVER, that any and all such
additional bonds may be so issued only in accordance with
and subject to the covenants, conditions, limitations and
restrictions relating thereto which are set out and contained
in the ordinance authorizing this series and reference to
said ordinance is hereby made for more complete and full
particulars.
THE HOLDER hereof shall never have the right to d~and
payment of this obligation out of any funds raised or to be
raised by taxation.
AND IT IS HEREBY CERTIFIED AND RECITED that the issuance
of this bond, and the series of which it is a part is duly
authorized by law; that all acts, conditions and things
required to exist and to be done precedent to and in the
issuance of this bond to render the same lawful and valid
have been properly done, have happened and have been performed
in regular and due time, form and manner as required by the
Constitution and laws of the State of Texas and the ordinance
hereinabove mentioned; that this series of revenue bonds does
not exceed any constitutional or statutory limitation;
and that provision has been made for the payment of the
principal of and interest on this bond and the series of
which it is a part by irrevocably pledging the net revenues
of said combined Waterworks and Sanitary Sewer System of the
City of North Richland Hills, Texas, as hereinabove recited.
IN TESTIMONY WHEREOF, the City Council of the City of
North Richland Hills, Texas, in accordance with the provisions
of Article 7l7j-l, V.A.T.C.S., has caused the seal of said
City to be impressed or a facsimile thereof to be printed
hereon, and this bond and its appurtenant coupons to be
executed with the imprinted facsimile signatures of the
Mayor and City Secretary of said City.
Mayor, City of North Rich1and
Hills, Texas
COUNTERSIGNED:
City Secretary, City of North
Richland Hills, Texas
SECTION 7: Coupon Form. That the form of said interest
coupons shall be substantially as follows:
NO.
ON THE FIRST DAY OF
$
*(unless the bond to which this coupon pertains has been
called for redemption in accordance with its terms,) the
CITY OF NORTH RICHLAND HILLS, a municipal corporation in the
County of Tarrant, State of Texas, hereby promises to pay to
bearer the amount shown hereon, out of funds specified in
the bond to which this coupon is attached (without right to
demand payment out of any funds raised or to be raised by
taxation), in lawful money of the United States of America,
upon presentation and surrender of this coupon, at THE FORT
WORTH NATIONAL BANK, Fort Worth, Texa.s, without exchange or
collection charges, said amount being interest due that day
on "CITY OF NORTH RICHLAND HILLS, TEXAS, WATERWORKS AND
SEWER SYSTEM REVENUE BOND, SERIES 1980", dated September 1, 1980.
Bond No.
City Secretary
Mayor
7(NOTE TO PRINTER: The expression in parenthesis to be included
only in coupons IDaturing March 1, 1992, and subsequent, per-
taining to optional bonds maturing in the years 1992 through 2003.
SECTION 8: Form of Comptroller's Certificate. That
substantially the following shall be printed on the back of
each bond:
OFFICE OF COMPTROLLER
STATE OF TEXAS
§
§
§
REGISTER NO.
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 North Rich1and Hills, Texas,
payable from the revenues pledged to its payment by and in
the ordinance authorizing same, and said bond has this day
been registered by me.
WITNESS MY HAND AND SEAL OF OFFICE, at Austin, Texas,
Comptroller of Public Accounts
of the State of Texas
SECTION 9: Definitions. For all purposes of this ordinance
and in particular for clarity with respect to the issuance of the
bonds herein authorized and the pledge and appropriation of
revenues therefor, the following definitions are provided:
(a) The term "System" shall mean the City's
combined Waterworks and Sanitary Sewer System, including
all present and future additions, extensions, replacements
and improvements in anywise appertaining thereto, whether
situated within or without the limits of said City.
(b) The term "net revenues" shall mean the gross
revenues of the System less the expense of operation and
maintenance, including all salaries, labor, materials,
repairs and extensions necessary to render efficient
service, provided, however, that only such repairs and
extensions as, in the judgment of the City Council
reasonably and fairly exercised, are necessary to keep
the System in operation and render adequate service to the
City and the inhabitants thereof, or such as might be
necessary to meet some physical accident or condition
which would otherwise impair the security of any bonds
payable from and secured by a lien on the net revenues
of the Sl,stem shall be deducting in determining "net
revenues I .
(c) The term "bonds" shall mean the $2,400,000
revenue bonds authorized by this ordinance.
(d) The term "additional bonds" shall mean the
additional parity revenue bonds issued in accordance
with the terms and conditions prescribed under Section 19
hereof.
Ce) The term "bonds similarly secured" shall mean
the previously issued bonds, the bonds and additional
bonds, if payable from and secured by a first lien on
and pledge of the net revenues of the System.
(f) The term "previously issued bonds" shall mean
the outstanding and unpaid bonds know'Il as "CITY OF
NORTH RICHLAND HILLS, TEXAS, WATERWORKS AND SEWER SYSTEM
REVENUE BONDS", to wit:
SERIES 1971, dated September 1, 1971, originally
issued in the aggregate principal amount of
$5,275,000; and
SERIES 1978, dated June 1, 1978, originally issued
in the aggregate principal amount of $3,500,000.
(g) The term "fiscal year" shall mean the twelve-
month period ending Sept~Œber 30th of each year.
SEÇTION 10: Pled~_. That the City hereby covenants
and agrees that all of the net revenues of the System with,
the exception of those in excess of the amounts required to
establish and maintain the special Funds created for the pay-
ment and security of the bonds similarly secured, are hereby
irrevocably pledged for the payment of the previously issued
bonds, the bonds and additional bonds, if issued, and the
interest thereon, and it is hereby ordained that the previously
issued bonds, the bonds and additional bonds, if issued, and
the interest thereon shall constitute a first lien upon the
net revenues of the System.
SECTION 11: Rates and Char~es. That the City hereby
covenants and agrees with the holders of the bonds and the
previously issued bonds as follows:
(a) That it will at all times charge and collect
for services afforded by the System rates sufficient to
pay all operating, maintenance, depreciation, replacement
and betterment expenses, and other costs incurred in the
maintenance and operation of the System and to pay the
interest on and principal of the previously issued bonds
and the bonds and to establish and maintain the special
Funds created for the payment and security of bonds
similarly secured.
(b) That if additional bonds are issued, or if the
System should become legally liable for any other indebted-
ness, the City will fix and maintain rates and collect
charges for the services of the System sufficient to
discharge such indebtedness.
SECTION 12: Fund Designations. That the City hereby
reaffirms its covenant with' the holders of the previously issued
bonds and agrees with the holders of the bonds that all revenues
derived from the operation of the System shall be kept separate
from other funds of the City. To that end the fol1m.¡ing spec.ial
Funds heretofore created and established are hereby reaffirmed,
to wit:
(a) City of North Richland Hills Waterworks and
Sewer System Fund, hereinafter called "System Fund".
This Fund shall be kept in the City's depository bank.
(b) City of North Rich1and Hills Waterworks and
Sewer System Revenue Bond Interest and Sinking Fund,
hereinafter called "Interest and Sinking Fund". This
Fund shall be deposited with the City's depository
bank, as ~tee of the pledged revenues, and shall be
used to pay principal of and interest on the bonds
similarly secured when and as the same shall become due
and payable.
(c) City of North Rich1and Hills Waterworks and
Sewer System Revenue Bond Reserve Fund, hereinafter called
"Reserve Fund". This Fund shall be deposited with THE
FORT WORTH NATIONAL BANK, Fort Worth, Texas, Trustee, and
shall be used to pay principal of and interest on the
bonds similarly secured falling due at any time when there
is not sufficient money available in the Interest and
Sinking Fund.
SECTION 13: System Fund. That the City hereby reaffirms
its covenant and agrees that all revenues of every nature received
from the operation of the System shall be deposited from day to
day as collected into the System Fund, and the reasonable and
proper expenses of operating and maintaining the System as set
forth in Section 9(b) hereof shall be paid therefrom upon approval
of the City Council. All revenues of the System not actually
required to pay maintenance and operating expenses and costs
incurred shall be appropriated and used for the purposes and in
the order of precedence hereinafter set forth.
SECTION 14: Interest and Sinking Fund. That, in addition
to the monthly deposits required to be made to the Interest and
Sinking Fund for the payment of prinéipàl of and interest on the
previously issued bonds, the City hereby agrees and covenants to
deposit in said Fund from the net revenues of the System in the
System Fund the following amounts to pay the annual debt ser~ice
requirements of the bonds as the same becomes due, to wit:
Beginning on or before November 15, 1980 and on Qr.
before the 15th day of each following month to and including
February 15, 1981, an amount equal to not less than the sum
of (i) one~fourth (1/4) of the installment of interest to
become due on the bonds on March 1, 1981 and (ii) one-tenth
(1/10) of the principal payment to become due on the bonds
on September 1, 1981; on or before March 15, 1981 and on or
before the 15th day of each following month, to and including
August 15, 1981, an amount equal to not less than the sum of
(i) one-sixth (1/6) of the installment of interest and (ii)
one-tenth (1/10) of the principal payment to become due on
the bonds on September 1, 1981; and theræfter, on or before
September 15, 1981, and on or before the 15th day of each
following month, an amount equal to not less than the sum of
(i) one-sixth (1/6) of the next semiannual installment of
interest and (ii) one-twelfth (1/12) of the next annual
principal payment to become due on the bonds.
The monthly deposits to the Interest and Sinking Fund for
the payment of principal and interest on the bonds shall continue
to be made as hereinabove provided until such time as (i) the total
amount on deposit in the Interest and Sinking Fund and Reserve
Fund is equal to the amount required to pay all outstanding
indebtedness (principal and interest) for which said Funds were
created and established (Section l2[b] and Section l2[c]) or (ii)
the bonds are no longer outstanding, i.e., fully paid as to
principal and interest or refunded.
Accrued interest and premium, if any, received from the
purchaser of the bonds, as well as any proceeds of the bonds
not required to improve and extend" the System for which
the bonds are being issued, shall be deposited to the Interest
and Sinking Fund, and may be taken into consideration and reduce
the amount of the monthly deposits hereinabove provided which
would otherwise be required to be deposited in the Interest
and Sinking Fund from the net revenues of the System.
SECTION 15: Reserve Fund. That the City hereby reaffirms
its covenant to the holders of the previously issued bonds and
agrees with the holders of the bonds that it will provide for
the accumulation of, and when accumulated, will thereafter con-
tinuously maintain in the Reserve Fund an amount equal to not
less than the average annual principal and interest requirements
of bonds similarly secured.
1 \
Under the prov~s~ons of the or~inahces authorizìng the
issuance of the previously issued bonds, the total amount required
to be accumulated in the Reserve Fund is $694,200 and there is
currently on deposit in said Fund the sum of $652,172. That,
by reason of the issuance of the bonds, the total amount to be
accumulated and maintained in the ~eserve Fund is hereby increased
to an amount equal to not less than' $ (which sum is
equal to not less than the average annual principal and interest
requirements of the previously issued bonds now outstanding and
the bonds); and beginning on or before the 15th day of November,
1980, and on or before the 15th day of each following month,
monthly deposits in an amount equal to not less than $
shall be made to the Reserve Fund until the amount of cash and
investments in said Fund totals not less than $ When
the total amount now required to be deposited in the Reserve Fund
has been fully accumulated, said monthly payments to said Fund
may be terminated; provided, hmvever, should the amount on
deposit in said Fund be reduced below $ , after the
same has been accumulated, monthly deposits in an amount equal
to not less than $ shall be resumed and continued to
be made on or before the 15th day of each month until the amount
required to be deposited therein has been fully restored.
Money in the Reserve Fund may be, at the option of the City,
invested or reinvested from time to time in direct obligations of
or obligations the principal and interest of which are guaranteed
by the United States of America, or invested in direct obligations
of or participation certificates guaranteed by the Federal
Intermediate Credit Banks, Federal Land Banks, Federal National
Mortgage Association, Federal Home Loan Banks, Banks for
Cooperatives, and in certificates of deposit of any bank or trust
company the deposits of which are fully secured by a pledge of
the securities of any of the kinds hereinabove specifi.ed, such
obligations or securities to mat.ure in not more than ten years
from the date of such investment or not later than the final
maturity of the bonds outstanding for which the Reserve Fund is
established, whichever is shorter. Any obligations in which money
is so invested shall be kept in escrow in THE FORT WORTH NATIONAL
BANK, Fort Worth, Texas, and shall be promptly sold and the pro-
ceeds of sale applied to the making of payments required to be
made from the Reserve Fund whenever such payments are necessary
to be made under the provisions of Section l2(c). The deposits
into this Fund shall be subordinate to those required to be
made into the Interest and Sinking Fund.
SECTION 16: Deficiencies in Funds. That if in any month
the City shall, for any reason, fail to pay into the Interest and
Sinking Fund and Reserve Fund the full amounts above stipulated,
amounts equivalent to such deficiencies shall be set apart and paid
into said Funds from the first available and unallocated net rev~s
of the System in the following month or months and such payments
shall be in addition to the amounts hereinabove provided to be
otherwise paid into said Funds during such month or months.
SECTION 17: Excess Revenues. That any revenues in excess
of those requìred to fully establish and maintain the special
Funds created for the payment and security of the bonds similarly
secured may be used for the redemption of bonds similarly secured,
or may be transferred to the general fund of the City and used
for general or special purposes.
. SE~TION 18: Secur~tl of.Funds: That all money~ ~eposited
~n spec1al Funds for wh1cn th1s ord1nance makes prov1s10n (except
any portions thereof as may be at any time properly invested)
shall be secured in the manner and to the fullest extent required
by the laws of Texas for the security of public funds, and moneys
on deposit in such Funds shall be used only for the purposes per-
mitted by this ordinance.
·
SECTION 19: Issuance of Additional Parity Bonds. That
in addition to the right to issue bonds of inferior lien as
authorized by the laws of this State,! the City reserves the
right hereafter to issue additional parity bonds. The additional
bonds when issued shall be payab~e frbm and secured by a first
lien on and pledge of the net revenue~ of the System in the same
manner and to the same extent as are the previously issued bonds
and the bonds, and the previously issued bonds, the bonds and
the additional bonds shall in all respects be of equal dignity.
The additional bonds may be issued in one or more installments,
provided, however, that none shall be issued unless and until
the following conditions have been met:
(a) The City is not then in default as to any
covenant, condition or obligation prescribed in an
ordinance authorizing the issuance of the outstanding
bonds similarly secured.
(b) Each of the Funds created and established for
the payment and security of the bonds similarly secured
contain the amount of money then required to be on deposit
therein.
(c) The net earnings of the System for (1) any con-
secutive twelve months out of the fifteen months next
preceding the date of the additional bonds or (2) the fiscal
year next preceding the date of the additional bonds are
equal to at least 1.30 times the principal and interest
requirements of all bonds similarly secured (after giving
effect to the issuance of the proposed additional bonds)
for the year when such requirements are the greatest, as
such net earnings are shown by a report of a Certified
Public Accountant. The term "net earnings" as used in
this Section 19 shall mean the gross revenues after deducting
the expense of operation and maintenance, but not deducting
depreciation or expenditures which, under standard accounting
practice, should be charged to capital expenditures.
(d) The additional bonds are made to mature on
September 1 in each of the years in which they are
scheduled to mature.
(e) The ordinance authorizing the issuance of the
additional bonds Drovides for the accumulation in the
Interest and Sinking Fund of amounts sufficient to pay
the principal of and interest on such additional bonds
as same mature.
(f) The ordinance authorizing the issuance of the
additional bonds provides that the amount to be acc~~ulated
and maintained in the Reserve Fund shall be in an amount
not less than the average annual requirement for the payment
of principal of and interest on all bonds to be secured by
a first lien on and pledge of the net revenues of the System
after giving effect to the issuance of the proposed additional
bonds, and provides that any additional Reserve Fund amount
which may thus be required shall be accumulated within not
more than five years and one month fram the date of the
passage of the ordinance authorizing the issuance of the
proposed additional bonds.
The bonds similarly secured may be refunded (pursuant
to any law then available) upon such terms and conditions as
the governing body of the City may deem to the best interest
of the City and its inhabitants, and if less than all such
outstanding revenues bonds are refunded, the proposed refunding
bonds shall be considered as "additional bonds" under the
provisions of this Section and the report required in subdivision
(c) shall give 8ffect to the issuance of the proposed refunding
bonds (and shall not give effect to the bonds being refunded
following their cancellation or provision being made for
their payment).
SECTION 20: Maintenance and Operation - Insurance. The
City shall maintain the System in good condition and operate
the same in an efficient manner and at reasonable cost. So
long as any of the bonds similarly secured are outstanding,
the City agrees to maintain insurance for the benefit of the
holder or holders of the bonds on the System of a kind and
in an amount which usually would be carried by private
companies engaged in a similar type of business. Nothing in
this ordinance shall be construed as requiring the City to
expend any funds which are derived from sources other than
the operation of the System, but nothing herein shall be
construed as preventing the City from doing so.
SECTION 21: Records - Accounts - Accounting Reports. The
City hereby covenants and agrees that so long as any or-the
bonds similarly secured or any interest thereon remain
outstanding or unpaid, it will keep and maintain a proper
and complete system of records and accounts pertaining to
the opera.tion of the System (separate and apart from all
other records and accounts) in which complete and correct
entries shall be made of all transactions relating to said
System, as provided by Article 1113, V.A.T.C.S., and that
the holder or holders of any of such bonds, or any duly
authorized agent or agents of such holders, shall have the
right at all reasonable times to inspect the System and all
properties comprising same. The City further agrees that wi thin_
ninety (90) days following the close of each fiscal year,
it will cause an audit of such books and accounts to be made
by an independent firm of Certified Public Accountants. Each
such audit, in addition to whatever other matters may be
thought proper by the Accountant, shall particularly include
the following:
(a) A detailed statement of the income and expenditures
of the System for such fiscal year;
(b) A balance sheet as of the end of such fiscal year;
(c) The Accountant's comments regarding the manner in
which the City has carried out the requirements of this
ordinance and his recommendations for any changes or ~provements
in the operation,records and accounts of the System.
(d) A list of the insurance policies in force at the
end of the fiscal year on the System properties, setting out
as to each policy the amount thereof, the risk covered, the
name of the insurer and the policy's expiration date.
(e) A list of the securities which have been on deposit
as security for the money in the Interest and Sinking Fund
throughout the fiscal year, a list of the securities, if
any, in which the Reserve Fund has been invested, and a
statement of the manner in which money in the System Fund
has been secured in such fiscal year;
(f) The number of properties connected with the System.
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Expenses incurred in making the audits above referred
to are to be regarded as maintenance and operating expenses
and paid as such. Copies of the aforesaid annual audit
shall be immediately furnished to the Executive Director of
the Municipal Advisory Council of Texas at his office in
Austin, Texas, and to the original holders of the bonds and
any subsequent holder at his request. At the close of the
first six months' period of each fiscal year, the City Secretary
is hereby directed to furnish a copy of an operating and income
statement in reasonable detail covering such period to any bond-
holder upon his request therefor received not more than thirty (30)
days after the close of said six months' period. Any
bondholder shall have the right to discuss with the Accountant
making the annual audit the contents thereof and to ask for
such additional information as he may reasonably require.
SECTION 22: Remedies in Event of Default. In addition
to all the rights and remedies provided by the laws of the
State of Texas, the City covenants and agrees particularly
that in the event the City (a) defaults in payments to be
made to the Interest and Sinking Fund and Reserve Fund as
required by this ordinance, or (b) defaults in the observance
or performance of any other of the covenants, conditions or
obligations set forth in this ordinance, the holder or
holders of any of the bonds shall be entitled to a writ of
mandamus issued by a court of proper jurisdiction compelling
and requiring the City Council and other officers of the
City to observe and perform any covenant, condition or
obligation prescribed in this bond ordinance.
No delay or omission to exercise any right or power
accruing upon any default shall impair any such right or
power, or shall be construed to be a waiver of any such
default or acquiescence therein, and every such right and
power may be exercised from time to time and as often as may
be deemed expedient. The specific remedy herein provided
shall be cumulative of all other existing remedies and the
specification of such remedies shall not be deemed to be
exclusive.
SECTION 23: Special Covenants. That the City hereby
further covenants as tõllows:
(a) That it has the lawful power to pledge the
revenues supporting this issue of bonds and has lawfully
exercised said power under the Constitution and laws of
the State of Texas, including said power existing under
Articles 1111 et seq., V.A.T.C.S.; that the bonds similarly
secured shall be ratably secured under said pledge of
income in such manner that one bond shall have no
preference over any other bond of said issues;
(b) That other than for the payment of the previously
issued bonds and the bonds herein authorized, the net
revenues of the System have not in any manner been
pledged to the payment of any debt or obligation of the
City or of the System;
(c) That, so long as any of the bonds similarly secured
remain outstanding, the City will not sell or encumber
the System or any substantial part thereof, and that with the
exception of additional parity bonds expressly perIDitted by
this ordinance to be issued, it will not encumber the net
revenues of the System unless such encumbrance is made
junior and subordinate to the provisions of this ordinance;
provided, however, the City may dispose of any portion of the
System located within the corporate limits of any other
municipality or municipalities under the following conditions:
(1) the sale price for such portion of the System (as certi-
fied by a registered professional engineer employed by the
City of North Richland Hills) is not less than the then
appraised value of the portion being sold, and in addition to
the sale price, the purchaser pays or makes provision for the
payment of any penalties and added expenses that occur in such
acquisition (including the cost of acquiring for redemption
bonds similarly secured or other obligations issued by the
City to acquire such properties) and (2) the amount received
by the City as the sale price is applied (or provision is
made to apply) by such City to the payment and cancellation
of bonds similarly secured or other obligations issued by
the City to acquire such properties prior to their regularly
scheduled maturity by purchase in the open market or by
exercise of the prepayment option, and (3) the governing
body of the City finds that portion of the System to be
sold is not required for the rendition of efficient service
to the inhabitants of the City.
(d) That no free services of the System shall be
allowed, and should the City or any of its agents of
instrumentalities make use of the services and facilities
of the System, payment of the reasonable value thereof
shall be made by the City out of funds from sources
other than the revenues and income of the System;
(e) To the extent that it legally may, the City
further covenants and agrees that, so long as any of
the bonds similarly secured or any interest thereon,
are outstanding, no franchise shall be granted for the
installation or operation of any waterworks or sewer
system other than those owned by the City, and the operation
of any such system by anyone other than the City is hereby
prohibited.
SECTION 24: Bonds are Special Obligations. The bonds
are special Obrigatiôns of the City payable - from the pledged
net revenues, and the holders thereof shall never have the
ri~ht to demand payment thereof out of funds raised or to be
ra~sed by taxation.
SECTION 25: Bonds as Negotiable Instruments. Each of
the bonds herein authorized shall be deemed and construed to
be a "security", and as such a negotiable instrument, within
the meaning of Article 8 of the UniforID Commercial Code.
SECTION 26: ~ayor to Have Charg~ of Records and Bonds. The
Mayor of the City of North Richland Hills shall be and he is
hereby authorized to take and have charge of all necessary
orders and records pending investigation by the Attorney
General of the State of Texas, and shall take and have
charge and control of the bonds herein authorized pending
their approval by the Attorney General, their registration
by the Comptroller of Public Accounts and delivery to the
purchasers thereof.
SECTION 27: Confirmation of Sale. That the sale of
the bonds herein authorized to
at the price of par and accrued interest to the date of
delivery, plus a premium of $ , is hereby confirmed.
Delivery of said bonds shall be made to said purchaser as
soon as IDay be after the adoption of this ordinance, upon
payment therefor in accordance with the terms of sale.
SECTION 28: Printed Legal Opinion on Bonds. The purchasers'
obligation to accept delivery of the bonds herein authorized
is subject to their being furnished a final opinion of
Messrs. Dumas, Huguenin, Boothman and Morrow, Attorneys,
Dallas, Texas, approving such bonds as to their validity,
said opinion to be dated and delivered as of the date of
delivery and payment for such bonds. Printing of a true and
correct copy of said opinion on the reverse side of each of
such bonds with appropriate certificate pertaining thereto
executed by the facsimile signature of the City Secretary is
hereby approved and authorized.
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SECTION 29: No-Arbitrage. The City hereby certifies
and covenants that the proceeds of the bonds are needed at
this time to finance the costs of capital improvements
planned by the City; based on current facts, estimates and
circumstances, it is reasonably expected final disbursement
of the bond proceeds will occur within three years from the
date of the receipt thereof by the City; it is not reasonably
expected that the proceeds of the bonds or moneys deposited
in the special Funds referred to therein for the payment and
security of the bonds will be used or invested in a manner
that would cause the bonds to be "arbitrage bonds" within
the meaning of Section 103(c) of the Internal Revenue Code
of 1954, as amended, or any regulations or published rulings
pertaining thereto; and save and except for the special
Funds referred to herein, no other funds or accounts have
been established or pledged for the payment of the bonds.
Proper officers of the City charged with the responsibility
in the issuance of the bonds are hereby authorized and
directed to make, execute and deliver certifications as to
facts, estimates and circumstances in existence as of the date
of issue of the bonds and stating whether there are any other
facts, estimates or circumstances which would materially
change the City's current expectations, and the covenants
herein made and certifications herein authorized are for the
benefit of the holders of the bonds and coupons appertaining
thereto and may be relied upon by the bondholders and bond
counsel for the City.
SECTION 30: CUSIP Numbers. That CUSIP numbers may be
printeà on the bonds herein authorized. It is expressly pro-
vided, however, that the presence or absence of CUSIP numbers
on the bonds shall be of no significance or effect as regards
the legality thereof and neither the City nor attorneys approving
said bonds as to legality are to be held responsible for CUSIP
numbers incorrectly printed on the bonds.
SECTION 31: Official Statement. That, in reference to the
Official Statement prepared in the intital offering and sale
of the bonds herein authorized by the City, the City Council
ratifies and confirms its prior approval of the form and content
thereof and hereby approves the form and content of any addendas,
supplements or amendments thereto; the use of such Official State-
ment in the reoffering of the bonds by the above named purchaser(s)
is hereby approved and authorized; and proper officials of the
City are hereby authorized and directed to execute and deliver a
certificate pertaining to said Official Statement as prescribed
therein, dated as of the date of payment for and delivery of
the bonds.
SECTION 32: Ratification of Notice of Intention to Issue Bonds.
That the acts of the City Secretary in causing the "Notice of
Intention to Issue City of North Richland Hills, Texas, Revenue
Bonds" to be published in the
referred to in the preamble herèõf, are hereby ratified, confirmed
and approved.
SECTION 33: Effective Date. That this ordinance shall take
effect immediately and be in full force and effect from and after
the date of its passage and it is so ordained.
PASSED AND APPROVED, thiS~he 8 . day ~Of September, 1980.
(L; "
y , City õ North Rich1and Hills,
Texa s
ATTEST:
~~~ YJ?~
Ci Secretary, '~(; of North
R· land Hills, Texas
APPROVED AS TO LEGALITY:
(City Seal)
City Attorney, City of North Richland
Hills, Texas
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'MINUTES PERTAINING TO AN ORDINANCE AUTHORIZ¡NG THE ¡SSUANCE
OF $2,400,000 "CITY OF NORTH RICHLAND HILLS, TEXAS,
WATER\'¡ORKS AND SEWER SYSTEM REVE!'rUE BONDS, SERIES 1980"
DATED SEPTEMBER 1, 1980
COUNTY OF TARRANT
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THE STATE OF TEXAS
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il ON THIS, the 8th day of September, 1980, the City Council
:Iof t1:e City of North Rich1ar;d Hills, Texas, cc:mvened ~n regular
¡sess~on at the regular meet~ng place thereof ~n the C~ty Hall,
¡!the.meeting b:ing open to t1:e public and notice of said meeting
'lihaV~ng been g~ven as prescr~bed by Article 6252-17, Section 3A,
!V.A.T.C.S., with the following members being present and in
iI' attendance, to wit:
¡DICK FARAM
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MAYOR
DAVE FREEMAN )
JIM KEIDh\ )
SHARYL GROVES )
JAMES T. "JIM" WOOD, JR. )
J. C. HUBBARD )
WILEY G. THOMAS, JR. )
ROBERT P. "BOB" BRADY )
MAYOR PRO TEM
COUNCILMEMBERS
\, and with the following absent: Jim Kenna ,
¡\constituting a quorum; and among other business considered at said
¡",meeting, an ordinance was submitted to the City Council for
passage and adoption. such ordinance being entitled as follows:
Ii "AN ORDINANCE by the City Council of the City of
¡I North Rich1and Hills, Texas, authorizing the
!i issuance of $2,400,000 'CITY OF NORTH RICHLAND
¡I HILLS, TEXAS. WATERWORKS AND SEWER SYSTEM
11 REVENUE BONDS, SERIES 1980", dated September 1,
\ 1980, to provide funds for improving and
I extending the City's Waterworks and Sanitary Sewer
I System. to wit: extensions and improvements to
¡ water distribution lines and facilities, as
I authorized by the General Laws of the State of
! Texas, particularly Articles llll et seq. and 2368a.
¡I V .A. T . C. S.; prescribing the form of the bonds and
Ii the form of the interest coupons; pledging the net
q revenues of the City's combined Waterworks and
Ii Sanitary Sewer System to the payment of the principal
d of and interest on said bonds; enacting provisions
:: incident and related to the subject and purpose of
¡; this ordinance; and providing an effective date."
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" The ordinance was read in full. Thereupon, Thomas
i~made a motion that any rule requiring ordinances to be read more
i than one time or at more than one meeting be suspended and that
(. said ordinance be finally passed and adopted on first reading. The
::motion was seconded by' ~ood and carried by the following
vote:
AYES: Councilmembers Freeman. Konn~, Groves, Wood, Hubbard,
Thomas and Brady.
NOES: None.
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The Presiding Officer then declared the ordinance finally
. passed and adopted.
MINUTES APPROVED, this the 8th day of September, 1980.
/s/ Dick Faram
Mayor, City of North Richland
Hills, Texas
ATTEST:
/s/ Jeanette Moore
City Secretary, City of North
Richland Hills, Texas
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ORDINANCE by the City Council of the City of
North Rich1and Hills, Texas, authorizing the
issuance of $2,400,000 "CITY OF NORTH RICHLAND
HILLS, TEXAS, WATERWORKS AND SEWER SYSTEM
REVENUE BONDS, SERIES 1980", dated September 1, '
1980, to provide funds for tmproving and
extending the City's Waterworks and Sanitary Sewer
System, to wit: extensions and tmprovements to
water distribution lines and facilities, as
authorized by the General Laws of the State of
Texas, particularly Articles 1111 et seq. and 2368a,
V.A.T.C.S.; prescribing the form of the bonds and
the form of the interest coupons; pledging the net
revenues of the City's combined Waterworks and
Sanitary Sewer System to the payment of the principal
of and interest on said bonds; enacting provisions
incident and related to the subject and purpose of
this ordinance; and providing an effective date.
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¡ WHEREAS, the City ~ouncil of the City of North Richland
;Hi11s, Texas, has determined that revenue bonds in the aggregate
¡principal amount of $2,400,000 should be issued to provide funds
¡for improving and extending the City's Waterworks and Sanitary
¡Sewer System, to wit: extensions and tmprovements to water dis-
¡tribution lines and facilities, which bonds, together with the
¡City's outstanding and unpaid revenue bonds (hereinafter defined
land identified in Section 9, and referred to, as the "previously
¡issued bonds") shall be payable from and secured by a first lien
Ion 'and pledge of the net revenues of the City's combined Waterworks
¡and Sanitary Sewer System; and
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, WHL~~, notice of this Council's intention to issue said
¡revenue bonds (stating the date, ttme and place the Council
¡proposed to pass the ordinance authorizing the issuance of
!such bonds, the purpose for issuing the same, the maximum amount
!proposed to be issued, the max~ interest rate the bonds are
'/ to bear and the maximum maturity date thereof) has been published
in the FORT WORTH STAR TELEGRAM , a newspaper published
and having general circulation in the City of North Richland
Hills, Texas, on August 15 , 1980 and Au~ust 22
:1980, the date of the first publication being at least fourteen
I (14) days prior to the date stated therein for the passage of
this ordinance; and
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! WHEREAS, no written petition has been filed with the City
!Secretary or any other official of the City requesting that the
¡question of the issuance of the bonds herein authorized be sub-
Ii mi tted to a referendum vote; and
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I, , 'WHEREAS, this Council hereby finds and determines that such
i:reven~e bonds can be issued on a parity with and equally secured
! in the same manner as the previously issued bonds in that (i) the
¡'City is not now in default as to any covenant, condition or
¡ obligation prescribed in the ordinances authorizing the issuance
l: of the previously issued bonds, (ii) each of the Funds created
!,and established for the paJ~ent and security of the previously
¡ issued bonds contains the amount of money now required to be on
I. deposit therein; (iii) the net earnings of the City's Waterworks
and Sanitary Sewer System for any consecutive twelve months out
of the fifteen IDonths next preceding the date of the bonds herein
authorized or for the fiscal year next preceding the date of the
bonds herein authorized, are equal to at least 1.30 times the
principal and interest requirements of all the previously issued
bonds and the bonds herein authorized to be issued for the year
when such requirements are the greatest, as shown by a report of
Certified Public Accountant, (iv) the bonds herein authorized to
be issued shall mature on September 1 in each of theyears in
which they are scheduled to IDa ture" (v) this ordinance makes pro-
, vision for the accumulation in the Interest and Sinking Fund of
....--
_,__ ,...~.__...~_ .....__. _, _ '_'T ",~_..,__..~_._ ,__ '_'~' ,,-._~
: amounts sufficient to pay the principal of and interest on the
bonds herein authorized to be issued; and (vi) this ordinance
¡makes provision for the amount to be accumulated and maintained
¡'in the Reserve Fund to be equal to not less than the average
¡annual requirements for the payment of principal of and interest
¡on all bonds to be secured by a first lien on and pledge of the
¡net revenues of the City's Waterworks and Sanitary Sewer System,
¡after giving effect to the issuance of the bonds herein authorized
¡¡to be issued, and any additional Reserve Fund amount thus required
¡ishall be accumulated within not more than five years and one month
¡¡from the date of passage of this ordinance; now, therefore, .
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¡il BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH
:RICHLAND HILLS, TEXAS:
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¡i SECTION 1: Authorization - Principal Amount - Designation.
That in order to borrow the sum of TWO MILLION FOù~ HUNDRED
; THOUSAND DOLLARS ($2,400,000) for the purpose of providing funds
,; for improving and extending the City's Waterworks and Sani tary
¡[:sewer System, to wit: extensions and improvements to water dis-
(:tribution lines and facilities, the City Council of the City of
i!North Richland Hills, Texas, pursuant to the General Laws of the
¡¡State of Texas, particularly Articles 1111 et seq. and 2368a,
HV.A.T.C.S., has determined that there shall be issued and there
"is hereby ordered to be issued a series of coupon bonds, to be _
Ii designated "CITY OF NORTH RICHLAND HILLS, ~EXAS, WATERWORKS A~ .
¡Ii SEWER SYSTEM REVENUE BONDS, SERIES 1980", ~n the aggregate pr~nc~-
¡pal amount of TWO MILLION FOUR HUNDRED THOUSAND DOLLARS
Ii ($2,400,000), which bonds, together with the outstanding and
I¡ uripaid previously issued bonds, shall be payable as to both
¡principal and interest solely fram and equally secured by a first
¡ lien on. and pledge of the net revenues of the City's combined
¡Waterworks and Sanitary Sewer System
Ii SECTION 2: Date - Numbers - Maturity - Interest Rates - Option.
. That said bonds shall be dated September 1, 19~0; shall be numbered
'1 consecutively fram One (1) through Four Hundred Eighty (480); shall
¡each be in the denomination of Five Thousand Dollars ($5,000); and
; shall become due and payable serially on September 1 in each of the
!years and bear interest at the per annum rates in accordance with
I; the following schedule:
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J . BOND NUMBERS
·1 (All Inclusive)
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1
7
14
21
29
38
48
59
71
84
99
1-16
134
155
176
200
226
254
285
319
356
396
438
MATURITY
INTEREST
RATE
AMOUNT
to 6
to 13
to 20
to 28
to 37
to 47
to 58
to 70
to 83
to 98
to 115
to 133
to 154
to 175
to 199
to 225
to 2~3
to 284
to 318
to 355
to 395
to 437
to 480
1981 .
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
$ 30,000
35,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
75,000
85,000
90,000
105,000
105,000
120,000
130,000
140,000
155,000
170,000
185,000
200,000
210,000
215,000
9.80 %
9.80 %
9 .80 %
9.80 %
9.80 %
9.80 %
9.80 %
9 . 80 io
9.80 %
9 %
.80
%
8.75
O %
8.0
8.15 %
8 %
.30
8.50 %
8.75 %
9.00 %
9.10 %
9.25 %
9.40 %
9.50 %
9.50 %
9.50 %
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PROVIDED, HOWEVER I that the City of North Richland Hills, ".
Texas reserves the right to redeem the bonds of this series
maturing on September 1, 1992, and subsequent, in whole or any
part thereof, on September 1, 1991, or on any interest payment
date thereafter, at the price of par and accrued interest to the
date fixed for redemption; PROVIDED, FURTHER, that at least thirty
(30) days prior to a date any of said bonds are to be redeemed, a
notice of redemption, signed by the City Secretary (specifying the
serial numbers and amount of bonds to be redeemed), shall have
been filed with THE FORT WORTH NATIONAL BANK, Fort Worth, Texas
(the paying agent named in each of said bonds); and if the City
shall have made available by the redemption date an amount
sufficient to pay the bonds called for redemption, any bond or
bonds not presented for redemption pursuant to such notice
shall cease to bear interest from and after the date so
fixed for redemption.
SECTION 3: Interest. That said bonds shall bear
interest from date to maturity, or the redemption thereof in
accordance with the terms prescribed therefor, at the per
annum rates shown above, such interest to be evidenced by
proper coupons attached to each of said bonds, and said
interest shall be payable on March 1, 1981, and semiannually
thereafter on September 1 and March 1 in each year.
SECTION 4: Place of Payment. That both principal of
and interest on this issue of bonds shall be payable in
lawful money of the United States of America, without exchange
or collection charges to the owner or holder, at THE FORT__~70RTH
NATIONAL BJU~. Fort Worth, Texas, upon presentation and
surrender of bonds or proper coupons.
SECTION 5: Execution of Bonds and Coupons. That the
seal of said City may be impressed on each of said bonds, or
in the alterative, a facsimile of such seal IDay be printed
on the said bonds. The bonds and interest coupons appurtenant
thereto may be executed by the imprinted facsimile signatures
'of the Mayor and City Secretary of the City and execution in
such manner shall have the same effect as if such bonds and
coupons had been signed by the Mayor and City Secretary in
person by their manual signatures. Inasmuch as such bonds
are required to be registered by the Comptroller of Public
Accounts for the State of Texas, only his signature (or that
of a deputy designated in writing to act for the Comptroller)
shall be required to be manually subscribed to such bonds in
connection with his registration certificate to appear
thereon, as hereinafter provided; all in accordance with
the provisions of Article 7l7j-l, V.A.T.C.S.
SECTION 6: Form of Bonds. That the form of said
Jonds shall be substantially as follows:
~O.
UNITED STATES OF AMERICA
STATE OF TEXAS
$5,000
COUNTY OF TARRANT
CITY OF NORTH RICHLAND HILLS, TEXAS,
WATERWORKS Al"ID SEWER SYSTEM REVENUE BOND,
SERIES 1980
FOR VALUE RECEIVED, the City of North Rich1and Hills, a
unicipal corporation of the State of Texas, hereby acknowledges
tself indebted"to and promises to pay to bearer, as hereinafter
tated, on the FIRST DAY OF SEPTEMBER,' , the sum of
FIVE THOUSAND DOLLARS
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I: ($5,000), in lawful money of the United States of America,
¡ with interest thereon from the date hereof to maturity, or the
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¡ redemption hereof in accordance with the terms prescribed
~I therefor, at the rate of PER CENTUM
( %) per annum, such interest being payable on March 1, 1981,
I and semiannually thereafter on September 1 and March 1 in each
year and evidenced by interest Coupons attached hereto.
,i BOTH PRINCIPAL AND INTEREST are payable only upon
/'I!i presentation and surrender of this bond and the interest
coupons hereto attached as the same severally become due at
;1 THE FORT WORTH NATIONAL BANK, Fort Worth, Texas, without
.1: exchange or collection charges to the owner or holder, and
II the b~ar~r o~ tris bond andh the ~p~urtenant couPfns shall be
,/ deeme t eda Sl01 uthe owner t ereo dor ~uhrposehs 0C. receivinhg
~¡ payment an a ot er purposes, an ne~t er t e ~ty nor t e
:! aforementioned place of payment shall be affected by any
notièe to the contrary.
THIS BOND is one of a series of bonds, dated September 1,
1980, numbered consecutively from One (1) through Four Hundred
Eighty (480); each in the denomination of Five Thousand
Dollars ($5,000), aggregating in principal amount TWO MILLION
FOUR HUNDRED THOUSAND DOLLARS ($2,400,000), issued to provide
I funds for improving and extending the City's Waterworks and
Sanitary Sewer System, to wit: extensions and improvements to
water distribution lines and facilities, in accordance with
the Constitution and laws of the State of Texas, particularly
Articles 1111 et seq. and 2368a, V.A.T.C.S., and pursuant to
an ordinance passed by the City Council of the City of
North Rich1and Hills, Texas, and duly recorded in the Minutes
of said City Council.
THE BONDS OF SAID SERIES maturing September 1, 1992, and
subsequent, may be redeemed prior to their scheduled maturity
at the option of the City, in whole or any part thereof, on
September 1, 1991, or on any interest payment date thereafter
:' at the price of par and accrued interes t to the date of
redemption; PROVIDED, HOWEVER, that at least thirty (30)
days prior to a date any of said bonds are to be redeemed, a
notice of redemption, signed by the City Secretary (specifying
the serial numbers and amount of bonds to be redeemed),
·sha1l have been filed with THE FORT WORTH NATIONAL BANK, Fort
Worth, Texas; and if the City ~hal1 have made available by
. the redemption date an amount sufficient to pay the bonds
called for redemption, any bond or bonds not presented for
redemption pursuant to such notice shall cease to bear
interest from and after the date so fixed for redemption.
THIS BOND and the series of which it is a part constitute
:specia1 obligations of the City of North Richland Hills, Texas,
:and, together with the outstanding and unpaid previously
,issued bonds(identified and defined in the ordinance authorizing
!this series of bonds), are payable from and secured by a
firs~ lien on and pledge of the net revenues of the City's
combined Waterworks and Sanitary Sewer System; and for a more
cŒDplete explanation and statement of the revenues pledged to
the payment and security of this bond and the series of which
it is one, reference is hereby made to the ordinance authorizing
the issuance of this series of bonds.
THE CITY expressly reserves the right to issue further
and additional special obligations in all things on a
parity with the outstanding an~ unpaid previously issued
~onds and the bonds of this series, payable solely from and
equally secured by a first lien on and pledge of the net
~evenues of the City's combined Waterworks and Sanitary
;ewer System; PROVIDED, HOWEVER, that any and all such
idditional bonds may be so issued only in accordance with
ind subject to the covenants, conditions, limitations and
~estrictions relating thereto which are set out and contained
~n the ordinance authorizing this series and reference to
¡aid ordinance is hereby made for more complete and full
larticu1ars.
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I· THE HOLDER hereof shall never have the right to demand
o payment of this.obligation out of any funds raised or to be
~ raised by taxat~on.
I AND IT IS HEREBY CERTIFIED AND RECITED that the issuance
11 of this bond, and the series of which it is a part is duly
~. "I" authorized by law; that all acts I conditions and things
required to exist and to be done precedent to and in the
I I issuance of this bond to render the same lawful and valid
',I":,, have been properly done, have happened and have been performed
in regular and due time, form and manner as required by the
t.!; Constitution and laws of the State of Texas and the ordinance
hereinabove mentioned; that this series of revenue bonds does
i not exceed any constitutional or statutory limitation;
.: and :that provision has been made for the payment of the
. I principal of and interest on this bond and the series of
Ii which it is a part by irrevocably pledging the net revenues
Ii of said combined Waterworks and Sanitary Sewer System of the
'I: City of North Rich1and Hills, Texas, as hereinabove recited.
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IN TESTIMONY WHEREOF, the City Council of the City of
North Richland Hills, Texas, in accordance with the provisions
of Article 7l7j-1, V.A.T.C.S., has caused the seal of said
City to be impressed or a facsimile thereof to be printed
hereon, and this bond and its appurtenant coupons to be
executed with the imprinted facsimile signatures of the
Mayor and City Secretary of said City.
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Mayor, City of North Richland
Hills, Texas
City Secretary, City of North
Richland Hills, Texas
SECTION 7: Coupon Form. That the form of said interest
coupons shall be substantially as follows:
NO.
ON THE FIRST DAY OF
$
*(unless the bond to which this coupon pertains has been
called for redemption in accordance with its terms,) the
CITY OF NORTH RICHLAND HILLS, a municipal corporation in the
County of Tarrant, State of Texas, hereby promises to pay to
: bearer the amount shown hereon, out of funds specified in
¡'ii',' the bond to which this coupon is attached (without right to
demand payment out of any funds raised or to be raised by
I: taxation), in lawful money of the United States of America,
upon pre~entation and surrender of this coupon, at THE FORT
,: WORTH NATIONAL BANK, Fort Worth, Texas, without exchange or
collection charges, said amount being interest due that day
on "CITY OF NORTH RICHLAND HILLS, TEXAS, WATERWORKS AND
SEWER SYSTEM REVENUE BOND, SERIES 1980", dated September 1, 1980.
Bond No.
City Secretary
Mayor
~"NOTE TO PRINTER: The expression in parenthesis to be included
only in coupons maturing March I, 1992, and subsequent, per-
taining to optional bonds maturing in the years 1992 through 2003.
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SECTION 8: Form of Comptroller's Certificate. That
substantially the following shall be printed on the back of
each bond:
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OFFICE OF COMPTROLLER
STATE OF TEXAS
REGISTER NO.
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Ii I HEREBY CERTIFY that there is on file and of record in
II my office a certificate of the Attorney General of the State
I: 'of Texas to the effect that this bond has been examined by
II 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 North Richland Hills, Texas,
payable from the revenues pledged to its payment by and in
the ordinance authorizing same, and said bond has this day
been registered by me.
WITNESS MY HAND AND SEAL OF OFFICE, at Austin, Texas,
Comptroller of Public Accounts
of the State of Texas
SECTION 9: Definitions. For all purposes of this ordinance
and in .particular for clarity with respect to the issuance of the
bonds herein authorized and the pledge and appropriation of
revenues therefor, the following definitions are provided:
(a) The term "System" shall mean the City's
combined Waterworks and Sanitary Sewer System, including
all present and future additions, extensions, replacements
and improvements in anywise appertaining thereto, whether
situated within or without the limits of said City.
(b) The term "net revenues" shall mean the gross
revenues of the System less the expense of operation and
maintenance, including all salaries, labor, materials,
repairs and extensions necessary to render efficient
service, provided, howeveT, that only, such repairs and
extensions as, in the judgment of the City Council
reasonably and fairly exercised, are necessary to keep
the System in operation and render adequate service to the
City and the inhabitants thereof, or such as might be
necessary to meet some physical accident or condition
which would otherwise impair the security of any bonds
payable from and secured by a lien on the net revenues
of the S¡:stem shall be deducting in determining "net
revenues ' .
(c) The term "bonds" shall mean the $2,400,000
revenue bonds authorized by this ordinance.
(d) The term "additional bonds!' shall mean the
additional parity revenue bonds issued in accordance
with the ~erms and conditions prescribed under Section 19
hereof.
(e) The term "bonds similarly secured!! shall mean
the previously issued bonds, the bonds and additional
bonds, if payable from and secured by a first lien on
and pledge of the net revenues of the System.
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(f) The term "previously issued bonds" shall mean
the outstanding and unpaid bonds known as "CITY OF
NORTH RICHLÞ.ND HILLS, TEXAS, WATERWORKS AND SEWER SYSTEM
REVENuE BONDS", to wit:
SERIES 1971, dated September 1, 1971, originally
issued in the aggregate principal amount of
$5,275,000; and
SERIES 1978, dated June 1, 1978, originally issued
in the aggregate principal amount of $3,500,000.
(g) The term "fiscal year" shall mean the twelve-
month period ending September 30th of each year.
SECTION 10: P1ed~e. That the City hereby covenants
¡ and agrees that all of the net revenues of the System with,
! the exception of those in excess of the amounts required to
,!' establish and maintain the special Funds created for the pay-
I ment and security of the bonds similarly secured, are hereby
Ii¡ i.' irrevocably pledged for the payment of the previously issued
! ¡ bonds, the bonds and additional bonds, if issued, and the
~ ! interest thereon, and it is hereby ordained that the previously
issued bonds, the bonds and additional bonds, if issued, and
the interest thereon shall constitute a first lien upon the
net revenues of the System.
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',. SECTION 11; Rates and Charges. That the City hereby
, covenants and agrees with the holders of the bonds and the
1 previously issued bonds as follows:
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(a) That it will at all times charge and collect
for services afforded by the System rates sufficient to
pay all operating, maintenance, depreciation, replacement
and betterment expenses, and other costs incurred in the
maintenance and operation of the System and to pay the
interest on and principal of the .previously issued bonds
and the bonds and to establish and maintain the special
Funds created for the payment and security of bonds
similarly secured.
(b) That if additional bonds are issued, or if the
System should become legally liable fcr any other indebted-
ness, the City will fix and maintain rates and collect
charges for the services of the System sufficient to
discharge such indebtedness.
SECTION 12: Fund Designations. That the City hereby
reaffirms its covenant with the holders of the previously issued
bonds and agrees with the holders of the bonds that all revenues
derived from the operation of the System shall be kept separate
from other funds of the City. To that end the following special
Funds heretofore created and established are hereby reaffirmed,
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(a) City of North Richland Hills Waterworks and
Sewer System Fund, hereinafter called "System Fund".
This Fund shall be kept in the City's depository bank.
(b) City of North Rich1and Hills Waterworks and
Sewer System Revenue Bond Interest and SinkinR Fund,
hereinafter called "Interest and Sinking Fund'. This
Fund shall be áeposited with the C~ty's depository
bank, as ~tee of the pledged revenues, and shall be
used to pay pri~cipal of and interest on the bonds
similarly secured when and as the same shall become due
and payable.
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(c) City of North Rich1and Hills Waterworks and
Sewer System Revenue Bond Reserve Fund, hereinafter ~alled
"Reserve Fund". This Fund shall be deposited with THE
FORT WORTH NATIONAL BANK, Fort Worth, Texas, Trustee, and
shall be used to pay principal of and interest on the
bonds similarly secured falling due at any time when there
is not sufficient money available in the Interest and
Sinking Fund.
SECTION 13: System Fund. That the City hereby reaffirms
¡its covenant and agrees that all revenues of every nature received
;from the operation of the System shall be deposited from day to
¡day as collected into the System Fund, and the reasonable and
~roper expenses of operating and maintaining the System as set
£orth in Section 9(b) hereof shall be paid therefrom upon approval
bf the City Council. All revenues of the System not actually
required to pay maintenance and operating expenses and costs
încurred shall be appropriated and used for the purposes and in
the order of precedence hereinafter set forth.
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SECTION 14: Interest and Sinking Fund. That, in addition
:0 the monthly deposits required to be made to the Interest and
;inking Fund for the paymént of prinéipà1 of and interest on the
,revious1y issued bonds, the City hereby agrees and covenants to
!eposit in said Fund from the net revenues of the System in the
;ystem Fund the following amounts to pay the annual debt se~ice
requirements of the bonds as the same becames due. to wit:
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Beginning on or before November 15, 1980 and on ex.
before the 15th day of each following month to and including
February 15, 1981, an amount equal to not less than the sum
of (i) one-fourth (1/4) of the installment of interest to
become due on the bonds on March 1, 1981 and (ii) one-tenth
, (1/10) of the principal payment to become due on the bonds
on September 1, 1981; on or before March 15, 1981 and on or.
before the 15th day of each following month, to and including
August 15, 1981, an amount equal to not less than the sum of
(i) one-sixth (1/6) of the installment of interest and (ii)
one-tenth (1/10) of the principal payment to become due on
the bonds on September 1, 1981; and thereafter, on or before
September 15, 1981, and on or before the 15th day of each
following month, an amount equal to not less than the sum of
(i) one-sLxth (1/6) of the next semiannual installment of
interest and (ii) one-twelf~h (1/12) of the next annual
principal pa}-.nent to become due on the bonds.
The monthly deposits to the Interest and Sinking Fund for
,e payment of principal and interest on the bonds shall continue
be made as hereinabove provided until such time as (i) the total
ount on deposit in the Interest and Sinking Fund and Reserve
nd is equal to the amount required to pay all outstanding
1ebtedness (principal and interest) for which said Funds were
~ated and established (Section l2[b] and Section 12[cJ) or (ii)
= bonds are no longer outstanding. i.e.. fully paid as to
incipa1 and interest or refunded.
Accrued interest and premium, if any, received from the
~chaser of the bonds, as well as any proceeds of the bonds
required to improve and extend' the System for which
~ bonds are being issued, shall be deposited to the Interest
. Sinking Fund, and may be taken into consideration and reduce
~ amount of the monthly deposits hereinabove provided which
,ld otherwise be required to be deposited in the Interest
Sinking Fund from the net revenues of the System.
SECTION 15: Reserve Fund. That the City hereby reaffirms
covenant to the holders of the previously issued bonds and
ees with the holders of the bonds that it will provide for
accumulation of, and when accumulated, will thereafter con-
~ously maintain in the Reserve Fund an amount equal to not
s than the average annual principal and interest requirements
)onds similarly secured.
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S Under the provisions o~ the ordinances authorizing the .
: issuance of the previously ~ssued bond~, the total amount re~u~red
'-to be accumulated in the Reserve Fu?d ~s $694,200 and there ~s
;~ currently on deposit in said Fund tne sum of $652,172. That,
.~.; by reason of the issuance of the bonds, the total amount to be
~! accumulated and maintained in the Rese~e Fund is h~reby increased
~..t to an amount equal to not less than S 9::;7 ,266: 00. (wh~ch s~ is
W equal to not less than t~e aver~ge annual pr~nc~pal and 7nterest
~ requirements of the prev~ously ~ssued bonds now outstand~ng and
~ the bonds); and beginning on or before the 15th day of November,
ç 1980, and on or before the 15th day of each following month,
~ monthly deposits in an amount equal t~ not less than $5,085.00
~ shall be made to the Reserve Fund untll the amount of cash and
I. inves tments in said Fund totals not less than $ 957,266.00. When
; the total amount now required to be deposited in the Reserve Fund
~ has been fully accumulated, said monthly payments to said Fund
!,,~ may be terminated; provided, however, should the amount on
deposit in said Fund be reduced below $ 957 ,266.0,0 after the
same has been accumulated, monthly deposits in an amount equal
to not less than $ 7,625.00 shall be resumed and continued to
be made on or before the 15th day of each month until the amount
required to be deposited therein has been fully restored. .
Money in the Reserve Fund may be, at the option of the City,
invested or reinvested fram time to time in direct obligations of
or obligations the principal and interest of which are guaranteed
by the United States of America, or invested in direct obligations
of or participation certificates guaranteed by the Federal
Intermediate Credit Banks, Federal Land Banks, Federal National
Mortgage Association, Federal Home Loan Banks, Banks for
Cooperatives, and in certificates of deposit of any bank or trust
company the deposits of which are fully secured by a pledge of
the securities of any of the kinds hereinabove specified, such
obligations ors~ities to mature in not more than ten years
from the date of such investment or not later than the final
maturity of the bonds outstanding for which the Reserve Fund is
established, whichever is shorter. Any obligations in which money
is so invested shall be kept in escrOvl in THE FORT WORTH NATIONAL
BANK, Fort Worth, Texas, and shall be pramptly sold and the pro-
ceeds of sale applied to the making of payments required to be
made fram the Reserve Fund whenever such payments are necessary
to be made under the provisions of Section l2(c). The deposits
into this Fund shall be subordinate to those required to be
made into the Interest and Sinking Fund.
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SECTION 16: Deficiencies in Funds. That if in any month
the City shall, for any reason, rail to pay into the Interest and
Sinking Fund and Reserve Fund the full amounts above stipulated,
amounts equivalent to such deficiencies shall be set apart and paid
into said Funds from the first available and unallocated net revenues I
of the System in the following month or months and such payments
shall be in addition to the amounts hereinabove provided to be
otherwise paid into said Funds during such month or months.
SECTION 17: Excess Revenues. That any revenues in excess
of those required to fully establish and maintain the special
Funds created for the payment and security of the bonds similarl~
secured may be used for the redemption of bonds similarly secured,
or may be transferred to the general fund of the City and used
for general or special purposes.
SECTION 18: Security of Funds. That all moneys deposited
in special Funds for which this ordinance makes provision (except
any portions thereof as may be at any time properly invested)
shall be secured in the manner and to the fullest extent required
by the laws of Texas for the security qf public funds, and moneys
on deposit in such Funds shall be used only for the purposes per-
mitted by this ordinance.
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SECTION 19: Issu~nce of Additional Parity Bonds. That
in addition to the right to issue bonds of inferior lien as
authorized by the laws of this State, the City reserves the
right hereafter to issue additio~a1 parity bonds. The add~tiona1
bonds when issued shall be payab.~e from and secured by a f~rst
lien on and pledge of the net revenues of the System in the same
manner and to the same extent as are the previously issued bonds
and the bonds, and the previously issued bonds, the bonds and
the additional bonds shall in all respects be of equal dignity.
The additional bonds may be issued in one or more installments,
provided, however, that none shall be issued unless and until
the following conditions have been met:
(a) The City is not then in default as to any
covenant, condition or obligation prescribed in an
ordinance authorizing the issuance of the outstanding
bonds similarly secured.
(b) Each of the Funds created and established for
the payment and security of the bonds s~i1ar1y secured
contain the amount of money then required to be on deposit
therein.
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(c) The net earnings of the System for (1) any con-
secutive twelve months out of the fifteen months next
preceding the date of the additional bonds or (2) the fiscal
year next preceding the date of the additional bonds are
equal to at least 1.30 times the principal and interest
requirements of all bonds similarly secured (after giving
effect to the issuance of the proposed additional bonds)
f~r the year when such requirements are the greatest, as
such net earnings are shown b~ a report of a Certified
Public Accountant. The term 'net earnings" as used in
this Section 19 shall mean the gross revenues after deducting
the expense of operation and maintenance, but not deducting
depreciation or expenditures which, under standard accounting
practice, should be charged to capital expenditures.
Cd) The additional bonds are made to mature on
September 1 in each of the years in which they are
scheduled to mature.
(e) The ordinance authorizing the issuance of the
additional bonds provides for the accumulation in the
Interest and Sinking Fund of amounts sufficient to pay
the principal of and interest on such additional bonds
as same mature.
(f) The ordinance au:horizing the issuance of the
additional bonds provides that the amount to be accumulated
and maintained in the Reserve Fund shall be in an amount
not less than the average annual requirement for the payment
of principal of and interest on all bonds to be secured by
a first lien on and pledge of the net revenues of the System
after giving effect to the issuance of the proposed additional
bonds, and provides that any additional Reserve Fund amount
which may thus be required shall be accumulated within not
more than five years and one IDonth from the date of the
passage of the ordinance authorizing the issuance of the
proposed additional bonds.
The bonds similarly secured may be refunded (pursuant
to any law then available) ~pon such terms and condi~ions as
the governing body o~ the.C1ty may de~ to the best 1nterest
~f the City and its 1nhab1tants, and 1f less than all sU:h .
Jutstanding revenues bonds are refunded, the proposed rerund1ng
.:>onds shall be considered as "additional bonds" under the
provisions of this Section and the report required in subdivision
{c) shall give ~ffect to the issuance of the proposed refunding
~onds (and shall not give effect to the bonds being refunded
following their cancellation or provision being made for
their payment).
SECTION 20: Maintenance and Operation - Insurance. The
:ity shall maintain the System in good condition and operate
the same in an efficient manner and at reasonable cost. So
long as any of the bo~ds ~im~lar1y secured are outs~anding,
,the City agrees to ma1nta1n 1nsurance for the benef1t of the
~older or holders of the bonds on the System of a kind and
'in an amount which usually would be carried by private
companies engaged in a similar type of business. Nothing in
~his ordinance shall be construed as requiring the City to
~pend any funds which are derived from sources other than
-the operation of the System, but nothing herein shall be
Ifonstrued as preventing the City from doing so.
,_ SECTION 21: Records - Accounts - Accounting Reports. The
City hereby covenants and agrees that so long as any of the
~onds similarly secured or any interest thereon remain
~. utstanding or unpaid, it will keep and maintain a proper
~nd complete system of records and accounts pertaining to
~he operation of the System (separate and apart from all
~ther records and accounts) in which complete and correct
,~ntries shall be made of all transactions relating to said
=System, as provided by Article 1113, V.A.T.C.S., and that
xhe holder or holders of any of such bonds, or any duly
~uthorized agent or agents of such holders, shall have the
~ight at all reasonable times to inspect the System and all
.,;properties comprising same. The City further agrees that witbin__
}ninety (90) days following the close of each fiscal year,
fit wil~ cause an au~it of such.b~oks and. accounts to be made
]by an 1ndependent f1rm of Cert1f1ed Pub11c Accountants. Each
~such audit, in addition to whatever other matters may be
tthought proper by the Accountant, shall particularly include
¡the following:
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ì (a) A detailed statement of the income and expenditures
:of the System for such fiscal year;
,i (b) A balance sheet as of the end of such fiscal year;
, (c) The Accountant's comments regarding the manner in
~which the City has carried out the requirements of this
¡ordinance· and his recommendations for any changes or improvements
;in the operation, records and accounts of the System.
(d) A list of the insurance policies in force at the
~end of the fiscal year on the System properties, setting out
[as to each policy the amount thereof, the risk covered, the
¡name of the insurer and the policy's expiration date.
f (e) A list of the securities which have been on deposit
Jas security for the money in the Interest and Sinking Fund
throughout the fiscal year, a list of the securities, if
any, in which the Reserve Fund has been invested, and a
,statement of the manner in which money in the System Fund
¡has been secured in such fiscal year;
(f) The number of properties connected with the System.
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, Expenses incurred in ~king the audits abo~e referred
~o are to be recarded as ma~ntenance and operat~ng expenses
~nd paid as such. Copies of the aforesaid annual audit
'hall be immediately furnish:d to the Execut~ve Di~ect~r of
~he Municipal Advisory Counc~l of Texas at h~s off~ce ~n
1ustin Texas and to the original holders of the bonds and
~ny subsequent holder at his request. At the close of the
~irst six months' period of each fiscal year, the City Secretary
~s hereby directed to furnis~ a copy. of an opera~ing and income
~tatement in reasonable deta~l cover~ng such per~od to any bond-
~older upon his request therefor received not more than thirty (30)
1days after the close of said six months' period. Any
~ondholder shall have the right to discuss with the Accountant
:Jbaking the annual audit the contents thereof and to ask for
:~uch additional information as he may reasonably require.
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SECTION 22: Remedies in Event of Default. In addition
,,~to all the rights and remedies provided by the laws of the
l~State of Texas, the City covenants and agrees particularly
~·that in the event the City (a) defaults in payments to be
;imade to the Interest and Sinking Fund and Reserve Fund as
required by this ordinance, or (b) defaults in the observance
,or performance of any other of the covenants, conditions or
~ob1igations set forth in this ordinance, the holder or
bolders of any of the bonds shall be entitled to a writ of
~andamus issued by a court of proper jurisdiction compelling
)~and requiring the City Council and other officers of the
tCity to observe and perform any covenant, condition or
obligation prescribed in this bond ordinance.
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NQ delay or omission to exercise any right or power
accruing upon any default shall impair any such right or
power, or shall be construed to be a waiver of any such
default or acquiescence therein, and every such right and
power may be exercised from time to time and as often as may
be deemed expedient. The specific remedy herein provided
shall be cumulative of all other existing remedies and the
,specification of such remedies shall not be deemed to be
; exclusive.
SECTION 23: Special Covenants. ,That the City hereby
further covenants as follows:
(a) That it has the lawful power to pledge the
revenues supporting this. ;.s sue of bonds and has lawfully
exercised said power under the Constitution and laws of
the State of Texas, including said power existing under
Articles 1111 et seq., V.A.T.C.S.; that the bonds similarly
secured shall be ratably secured under said pledge of
income in such manner that one bond shall have no
preference over any other bond of said issues;
(b) That other than for the payment of the previously
issued bonds and the bonds herein authorized, the net
revenues of the System have not in any manner been
pledged to the payment of any debt or obligation of the
City or of the System;
(c) That, so long as any of the bonds similarly secured
remain outstanding, the City will not sell or encumber
the System or any substantial part thereof, and that with the
exception of additional parity bonds expressly permitted by
this ordinance to be issued, it will not encumber the net
revenues of the System unless such encumbrance is made
junior and subordinate to the provisions of this ordinance;
provided, however, the City may dispose of any portion of the
System located within the corporate limits of any other
municipality or municipalities under the following conditions:
(~) the sale price for such portion of the System (as certi-
f:ed by a registered professional engineer employed by the
C~ty of North Richland Hills) is not less than the then
appraised value of the portion being sold, and i~ ~ddition to
the sale price, the purchaser pays or makes prov~s~on for the
payment of any pena~ties and added expe~s7s that occur i~ such
acquisition (inc1ud~ng the cost of acqu~r~ng for redempt~on
bonds similarly secured or other obligations issued by the
City to acquire such properties) and (2) the amount received
by the City as the sale price is applied (or provision is
made to apply) by such City to the payment and cancellation
of bonds similarly secured or other obligations issued by
the City to acquire such properties prior to their regularly
scheduled maturity by purchase in the open market or by
exercise of the prepayment option, and (3) the governing
body of the City finds that portion of the System to be
sold is not required for the rendition of efficient service
to the inhabitants of the City.
(d) That no free services of the System shall be
allowed, and should the City or any of its agents of
instrumentalities make use of the services and facilities
of the System, payment of the reasonable value thereof
shall be made by the City out of funds from sources
other than the revenues and income of the System;
(e) To the extent that it legally may, the City
further covenants and agrees that, so long as any of
the bonds similarly secured or any interest thereon,
are outstanding, no franchise shall be granted for the
ins"tallation or operation of any waterworks or sewer
system other than those owned by the City, and the operation
of any such system by anyone other than the City is hereby
prohibited.
SECTION 24: Bonds are Special Obligations. The bonds
are special obligations of the City payable from the pledged
bet revenues, and the holders thereof shall never have the
~i~ht to demand.paymen~ thereof out of funds raised or to be
ra~sed by taxat~on.
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¡ SECTION 25: Bonds as Negotiable Instruments. Each of
~he bonds herein authorized shall be deemed and construed to
be a "security", and as such a negotiable instrument, within
~he meaning of Article 8 of the UniforD Commercial Code.
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SECTION 26: Mayor to Have Charge of Records and Bonds.
Mayor of the City of North Richland Hills shall be and he is
hereby authorized to take and have charge of all necessary
brders and records pending investigation by the Attorney
General of the State of Texas, and shall take and have
:charge and control of the bonds herein authorized pending
their approval by the Attorney General, their registration
þy the Comptroller of Public Accounts and delivery to the
purchasers thereof.
The
SECTION 27: Confirmation of Sale. That the sale of
:the bonds herein authorized to Underwood, ~qeuhaus & Co., and
. As sociates
at the price of par and accrued interest to the date of
delivery, plus a premium of $ -0- , is hereby confirmed.
pelivery of said bonds shall be made to said purchaser as
soon as may be after the adoption of this ordinance, upon
~ayment therefor in accordance with the terms of sale.
¡ SECTION 28: Printed Legal Opinion on Bonds. The purchasers'
t~bligation to accept delivery of the bonds herein authorized
\~s subject to their being furnished a final opinion of
Messrs. Dumas, Huguenin, Boothman and Morrow, Attorneys,
Dallas, Texas, approving such bonds as tq their validity,
,said opinion to be dated and delivered as of the date of
,delivery and payment for such bonds. Printing of a true and
¡correct copy of said opinion on the reverse side of each of
tsuch bonds with appropriate certificate pertaining thereto
~executed by the facsimile signature of the City Secretary is
hereby approved and authorized.
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SECTION 29: No-Arbitrag~. The City hereby certifies
ts that the Proceeas of the bonds are needed at
covenan f . 1·
~s time to finance the costs 0 cap~ta Dnprov7IDents
~nned bv the City; based onlcurrent fadc~~, elstd7IDbates and
cumsta~ces, it is reasonab y ~pe:te ~~na ~s ursement
'. the bond proceeds will occur w~th~n th~ee.years from the
'te of the receipt thereof by the C~ty; ~t ~s not reasonably
ected that the proceeds of the bond~ or moneys deposited
the special Funds referred to there~n for the payment and
curity of the bonds will be used or invested in a manner
at would cause the bonds to be "arbitrage bonds" within
e meaning of Section 103(c) of the Internal Revenue Code
~ 1954, as amended, or any regulations or published rulings
trtaining thereto; and save and except for the special
~ds referred to herein, no other funds or accounts have
~een established or pledged for the payment of the bonds.
~oper officers of the City charged with the responsibility
.~ the issuance of the bonds are hereby authorized and
Jirected to make, execute and deliver certifications as to
~acts estimates and circumstances in existence as of the date
Sf is~ue of the bonds and stating whether there are any other
~acts, estimates or circumstances ~hich would materially
~hange the City's current expectat~ons, and the covenants
ierein made and certifications herein authorized are for the
)enefit of the holders of the bonds and coupons appertaining
:hereto and may be relied upon by the bondholders and bond
·'Þounsel for the City.
SECTION 30: CUSIP Numbers. That CUSIP numbers may be
irintep on the bonds herein authorized. It is expressly pro-
ided, however, that the presence or absence of CUSIP numbers
n the bonds shall be of no significance or effect as regards
"the legality thereof and neither the City nor attorneys approving
'said bonds as to legality are to be held responsible for CUSIP ,
~umbers incorrectly printed on the bonds.
" SECTION 31: Official Statement. That, in reference to the
:Official Statement prepared in the intital offering and sale
of the bonds herein authorized by the City, the City Council
ratifies and confirms its prior approval of the form and content
,thereof and hereby approves the form and content of anyaddendas,
'supplements or amendments thereto; the use of such Official State-
ment in the reoffering of the bonds by the above named purchaser(s)
, is hereby approved and authorized; and proper officials of the
, City are hereby authorized and directed to execute and deliver a
certificate pertaining to said Official Statement as prescribed
therein, dated as of the date of payment for and delivery of
the bonds.
SECTION 32: Ratification of Notice of Intention to Issue Bonds.
That t~e acts of the City Secretary in causing the "Notice of
Inten~~on to Issu7 City. of North Richland Hills, Texas, Revenue
Bonds to be.publ~shed ~n the Fort Worth St~r Tp'PE~~m ,
referred to ~n the preamble hereof, are hereby ratified, confirmed
an~ approved.
SECTION 33: Effective Date. That this ordinance shall take
effect immediately and be in full force and effect from and after
the date of its passage and it is so ordained.
PASSED AND APPROVED, this the 8th day of September, 1980.
/s/ Dick Faram
Mayor, City of North Richland Hills,
T exa s
ATTEST:
I,
Isl Jeanette Moore
City Secretary, City of North
Richland Hills, Texas
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APPROVED AS TO LEGALITY:
Is I Rex McEntire
City Attorney, City of North Richland
Hills, Texas
(City Seal)
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CERTIFICATE OF CITY SECRETARY
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~ iE STATE OF TEXAS
:t!
~)U~TY OF TARRANT
'~WT, .
.' .
~TY OF NORTH RICHLÞ.ND HILLS
§
§
§
§
§
I, the undersigned, City Secretary of the City of North
·chland Hills, Texas, DO HEREBY CERTIFY that the above and
oregoing is a true and correct copy of an ordinance authorizing
, he issuance of $2,400,000 "CITY OF NORTH RICHLAND HILLS, TEXAS,
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TERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1980", dated
eptember 1, 1980 (and Minutes pertaining to its adoption), passed
. nd adopted by the City Council of said City on the 8th day of
eptember, 1980, and which ordinance appears of record in the
·nutes of said City Council.
I FURTHER CERTIFY that the said ordinance was passed at a
eeting open to the public and notice of said meeting was given
'n advance thereof in such manner as to be in compliance with
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- the provisions of Article 6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name officially
,
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:! .an affixed the seal of said City, this the 8th day of September,
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1 1980.
~~-...;/h -' ~~
y Secretary, City of North
ichland Hills, Texas
(City Seal)
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REPORT OF CERTIFIED. PUBLIC ACCOUNTANT
'·'·~OU~'tTI OF
Tarrant
§
§
§
'HE STATE OF TEXAS
:1~·
.. r, the undersigned, a CERTIFIED PUBLIC ACCOUNTANT, DO
tEREBY ~~KE THE FOLLOWING REPORT:
ø
. 1. That the total gross revenues, operation and maintenance
~.,'..' ~~ense~ and nset earsnintgs frfomththce.OtPeraftN~oo~thOfR~hchelWa~dterwH;olrlkss I
~ ~Q SanltarV ewer ys em 0 e ~ y 0 ~ ,
texas for the fiscal year ending September 30, 1979 are as follows:!
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Operation and
Maintenance Expenses
Net
Earnings
$1,692,228
$1,270,616
2. That the net earnings (gross revenues after deducting
pense of operation and maintenance, but not deducting expendi-
rtures which, under standard accounting practice, should be charged
\to capital expenditures) of the City's combined Waterworks and
Sanitary Sewer System for the fiscal year ending September 30,
1979 are equal to at least 1.30 times the principal and interest
require:=ents of the outstanding and unpaid "CITY OF NORTH RICHLAND
HILLS TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES
1971'.', ¿ated September 1, 1971, "CITY OF NORTH RICHLAND HILLS"
TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1978",
dated June 1, 1978 and the proposed "CITY OF NORTH RICHLAND HILLS,
TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1980",
dated September 1, 1980, for the year when such requirements are
the greatest.
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.¡-' ...i¡)'WZ ~O. ~8~~BSCRIBED BEFORE ME, this the fL#o day of
~/~J ß~L I
~otary Public, ~/J.~~ t/ County, 'I
t/ Texas ,/J
My Commission Expires: ~A";g ~/9';f/
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(Notary Seal)
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