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HomeMy WebLinkAboutOrdinance 0371 <f i¡ II :¡ n ¡i J I! !I I' I II II Ii ¡I ,I II !! ¡; I¡ !¡ ;1 il Ii I; H I' ï! " 'I a ORDINANCE NO. 371 ORDINANCE AUTHORIZING ISSUANCE OF $5,275,000 "CITY OF NORTH RICHLAND HILLS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1971~" DATED SEPTEMBER 1~ 1971 THE STATE OF TEXAS I I COUNrY OF TARRANl' I I CITY OF NORTH RICHLAND HILLS I \> " d Ii r h " Ü Ii 'í 11 11 ;; ON THIS, the 31st day of August, 1971, the City Council of the City of North Richland Hills, Texas, convened in special session at the regular meeting place thereof in the City Hall, the meeting being open to the public and notice of said meeting, giving the date, place and subject thereof, having been posted as prescribed by Article 6252-17, Section 3A, V.A.T.C.S., there being present and in attendance the following members, to wit: n H :1 c, h I¡ Ii i! ¡¡ ;¡ H ,. .' ;¡ .' " ¡; MARION L. MASSEY W. N. RATCLIFF MOmtX:SX)tlXX~U: J. R. HUBBARD W. F. POLSTER DICK FARAM J. F. CATO TOM E. NEWMA N CHARLES L. OWE N Mayor Ii II II !I ¡' ,I il Ii ' Ii II ~ ~ ~ ¡ h Ii II II ïj q ti [i " ) ) ) ) ) ) ) Councilmen and with the following absent: ~ i R. \{ ÙM/\-i~j) constituting a quorum; and among other proceedings had by said City Council were the following: , :1 i' i, Ii ¡! !! ¡¡ I, Ii ,I o II d II II Ii Ii " 1\ II d Ii if (, II I; ~¡ ¡¡ The Mayor introduced a proposed ordinance. The ordinance was read in full. Councilman ·~O\.-S.IC ~ made a motion that any rule requiring an ordinance to be read more than one time or at more than one meeting be suspended and that the ordinance be passed finally. Councilman t--Jt=2Lù MA-N seconded the motion and, the question being called for, the motion, carrying with it the adoption of the ordinance, carried by the following vote: Ratcliff AYES: Councilmen R1Xttnä, I". _A, Polster, Fa ram , Cato, Newman, and Owen. ;1 ,! NOES: None. ¡; The Mayor announced that the ordinance had been finally " d ¡ ¡¡ Ii " Ii Ii 11 Ii H q ¡¡ Ii II " ¡¡ I! passed. The ORDINAR::E is as follows: ¡¡ 'Ì Î ¡¡ 'î 'I Ii AN ORDINANCE by the City Council of the City of North Richland Hills, Texas, authorizing the issuance of $5,275,000 "CITY OF NORTH RICHLAND HILLS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1971," dated September 1, 1971, for the purpose of making permanent public improvements, to wit: $3,450,000 to purchase or build, improve, enlarge, extend and repair a Waterworks System and appurtenances thereto for said City, and $ 1,825,000 to purchase or build, improve, enlarge, extend and repair a Sanitary Sewer System and appurtenances thereto for said City, as authorized by the General Laws of the State of Texas, particularly Article 1111 et seq., 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 pay- ment of the principal of and interest on said bonds; enacting provisions incident and relating to the subject and purpose of this ordinance; and declaring an emergency. WHEREAS, at an election held on the 25th day of March, 1969, propositions were submitted as to whether this governing body would be authorized to issue bonds for the purpose of making permanent public improvements, to wit: $4,480,000 to purchase or build, improve, enlarge, extend and repair a Waterworks System and appurtenances thereto for said City; and $2,370,000 to purchase or build, improve, enlarge, extend and repair a Sanitary Sewer System and appurtenances thereto for said City; and it was provided in the propositions submitted at the election that all of the aforesaid bonds would be secured by a pledge of the net revenues from the operation of the City's combined Water- works and Sanitary Sewer System; and WHEREAS, it is now proper to provide for the issuance of a portion of said bonds in the amount hereinafter set forth, the City reserving the right to issue the remainder of the voted bonds at such time as the proceeds thereof are needed to accom- plish the voted purposes; now, therefore, BE IT ORDAINED BY THE CITY COUN:;IL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: SECTION l: Authorization - Principal Amount - Designation.¡ That in order to borrow the sum of FIVE MILLION TWO HUNDRED SEVENl'~- FIVE THOUSAND DOLLARS ($5,275,000) for the purpose of making permanent public improvements, to wit: $ 3.450,000 to purchase or build, improve, enlarge, extend and repair a Waterworks System and appurtenances thereto for said City, and $ l.825.000 to PROVIDED, HOWEVER, that the City of North Richland Hills reserves the right to redeem bonds maturing in each of the years 1992 through 2001 of said series, in whole or any part thereof, on September 1, 1991, and on any interest payment date thereafter through March 1, 1996, at the price of par, accrued interest plus a premium equal to 1/8 of 1% of the principal amount of the bond for each six-months period that a bond is called for redemp- tion prior to its regularly scheduled maturity; the City further reserves the right to redeem bonds maturing in each of the years 1997 through 2001 of said series, in whole or any part thereof, on September 1, 1996, or on any interest payment date thereafter, at the price of par plus accrued interest to the date fixed for redemption; PROVIDED, FURTHER, as to either of said options, at least thirty (30) days prior to any interest payment date upon which any of said bonds are to be redeemed, notice of redemption, signed by the City Secretary (specifying the serial numbers and amount of bonds to be redeemed) shall have been filed with AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, Chicago, Illinois, and THE FORT WORTH NATIONAL BANK, Fort Worth, Texas (the paying agents named in each of said bonds); and should any bond or bonds not be presented for redemption pursuant to such notice, the same shall cease to bear interest from and after the date so fixed for redemption. SECTION 3: Interest. That said bonds shäll bear inter- est from date to maturity at the rate of SEVEN PER CENTUM (7%) per annum, such interest to be evidenced by proper coupons attached to each of said bonds; and said interest shall be pay- able on March 1, 1972, and semiannually thereafter on September 1 and March 1 in each year. SECTION 4: Place of Payment. 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 AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, Chicago, Illinois, or, at the option of the 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. The seal of said City may be impressed on each of said bonds or, in the alter- native, a facsimile of such seal may be printed on said bond~. The bonds and interest coupons appurtenant thereto may be exe- cuted 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. purchase or build, improve, enlarge, extend and repair a Sani- tary Sewer System and appurtenances thereto for said City, the City Council of the City of North Richland Hills, Texas, pur- suant to the General Laws of the State of Texas, particularly Article 1111 et seq., 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 1971," aggregating the sum of FIVE MILLION TWO HUNDRED SEVENTY- FIVE THOUSAND DOLLARS ($5,275,000), 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 - Option. Said bonds shall be dated September l, 1971; shall be numbered con- secutively from One (l) through One Thousand Fifty-Five (1,055); shall each be in denomination of Five Thousand Dollars ($5,000); and shall become due and payable serially on September 1 in each of the years in accordance with the following schedule: BOND NUMBERS (All Inclusive) MATURITY AMOUNl' 1 to 16 1977 $ 80,000 17 to 34 1978 90,000 35 to 53 1979 95,000 54 to 73 1980 100,000 74 to 95 1981 110,000 96 to ll8 1982 115,000 119 to 143 1983 125,000 l44 to 170 1984 135,000 171 to 199 1985 145,000 200 to 230 1986 155,000 231 to 263 1987 165,000 264 to 298 1988 175,000 299 to 336 1989 190,000 337 to 376 1990 200,000 377 to 419 1991 215,000 420 to 465 1992 230,000 466 to 514 1993 245,000 515 to 567 1994 265,000 568 to 623 1995 280,000 624 to 683 1996 300,000 684 to 748 1997 325,000 749 to 817 1998 345,000 818 to 891 1999 370,000 892 to 970 2000 395,000 971 to 1055 200l 425,000 II II II 'j , SECTION 6: Form of Bonds. That the form of said bonds shall be substantially as follows: II II II I NO. UNITED STATES OF AMERICA $5,000 STATE OF TEXAS I 'I r COUNTY OF TARRA NT CITY OF OORTH RICHLAND HILLS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BOND, SERIES 1971 Ii II II II II II II II ! I: ! I The CITY OF NORTH RICHLAND HILLS, a municipal corporation of the State of Texas, acknowledges itself indebted to and FOR VALUE RECEIVED hereby promises to pay to bearer, as hereinafter stated, the sum of FIVE THOUSAND DOLLARS ($5,000), in lawful money of the United States of America on the FIRST DAY OF SEPTEMBER, , with interest thereon from the date hereof to maturity at the rate of SEVEN PER CENTUM ( 7 %) per annum, payable on March 1, 1972, and semiannually thereafter on September 1 and March 1 in each year, and interest falling due on or prior to maturity hereof is payable only upon presentation and surrender of the interest coupons hereto attached as they severally become due. II II II Ii II II I BOTH PRINCIPAL of and interest on this bond are hereby made payable at the AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, Chicago, Illinois, or, at the option of the holder, at THE FORT WORTH NATIONAL BANK, Fort Worth, Texas, without exchange or collection charges to the owner or holder, and said City of North Richland Hills, Texas, is hereby held and firmly bound to apply the pledged appropriated revenues of its combined Water- works and Sanitary Sewer System to the prompt payment of prin- cipal of and interest on this bond at maturity and to pay said principal and interest as they mature. i I J :\ THIS BOND is one of a series of bonds of like tenor and effect, except as to number, interest rate, right of prior redemption and maturity, aggregating in amount of FIVE MILLION TWO HUNDRED SEVENTY-FIVE THOUSAND DOLLARS ($5,275,000), numbered consecutively from One (1) through One Thousand Fifty-Five (l,055), each in denomination of Five Thousand Dollars ($5,000), issued for the purpose of making permanent public improvements, to wit: to purchase or build, improve, enlarge, extend and repair a Waterworks and Sanitary Sewer System and appurtenances thereto for said City, in accordance with the Constitution and laws of the State of Texas, particularly Article llll et seq., 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. II f! Ii II Ii ! :1 I ! ¡ I II j I I 'i lì Ii II 1\ 11 II ~ ~ í! 'I 'I J ~ ~ ~ ~ II II ~ I I .j AS SPECIFIED in the ordinance hereinabove mentioned, the City reserves the right to redeem bonds maturing in each of the years 1992 through 200l of this series, in whole or any part thereof, on September l, 1991, and on any interest payment date thereafter through March 1, 1996, at the price of par, accrued interest plus a premium equal to 1/8 of 1% of the principal amount of the bond for each six-months period that a bond is called for redemption prior to its regularly scheduled maturity; the City further reserves the right to redeem bonds maturing in each of the years 1997 through 200l of this series, in whole or any part thereof, on September 1, 1996, or on any interest payment date thereafter, at the price of par plus accrued interest to the date fixed for redemption; PROVIDED, HOWEVER, as to either of said options, at least thirty (30) days prior to any interest payment date upon which any of said bonds are to be redeemed, 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 AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, Chicago, Illinois, and THE FORT WORTH NATIONAL BANK, Fort Worth, Texas; and should any bond or bonds not be presented for redemp- tion pursuant to such notice, the same shall cease to bear interest from and after the date so fixed for redemption. THE DATE of this bond in conformity with the ordinance above mentioned is September 1, 1971. THIS BOND and the series of which it is a part constitute special obligations of the City of North Richland Hills, Texas, and are payable solely from and equally secured by a first lien on and pledge of the net revenues of the City's combined Water- works and Sanitary Sewer System. THE CITY expressly reserves the right to issue further and additional bond obligations in all things on a parity with the bonds of this series and 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, limitations, conditions and restrictions relating thereto which are set out and contained in the ordinance authorizing this series of bonds and to which ordinance reference is hereby made for more complete and full particulars. THE HOLDER hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. I ~ ij Ii " ~ II II II I 1 , q ~ II ~ 11 I . ~ t I " ~ l I I, l ¡ I I ~ r II ¡¡ ,I h " II I' ~ I ~ ¡ ij I I Ii II II I ¡ 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 limitations; 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 Rich1and Hills, Texas. p 1/ I, II II !~ 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 facs~i1e signatures of the Mayor and City Secretary of said City, as of the 1st day of September, 1971. I I II II Mayor, City of North Rich1and Hills, Texas COUNTERS IGNED: City Secretary, City of North Rich1and Hills, Texas I I II II Ii .I \ Ii II 'I II !I II i ! I I I I' I ,I I II I' II Ii I! II I!, I Ii I,i I Ii ;\ II I! ! I ·1 ! SECTION 7: Coupon Form. The form of said interest coupons shall be substantially as follows: ON THE FIRST DAY OF , $ NO. *(unless the bond to which this coupon pertains has been properly called for redemption in accordance with its terms,) the City of North Richland Hills, a municipal corporation of the State of Texas, hereby promises to pay to bearer, 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 taxa- tion), and in lawful money of the United States of America, without exchange or collection charges to the owner or holder, at the AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, Chicago, Illinois, or, at the option of the holder, at THE FORT WORTH NATIONAL BANK, Fort Worth, Texas, the sum of DOLLARS ($ ), said sum being months' interest due that day on "CITY OF NJRTH RICHLAND HILLS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BOND, SERIES 1971," dated September l, 1971. Bond No. City Secretary Mayor *NOTE TO PRINTER: The expression in parentheses to be included only in coupons maturing March l, 1992, and ,subsequent, pertain- ing to optional bonds maturing in the years 1992 through 200l. i II ·1 I, ., I I I II ,I II !I II II SECTION 8: Form of Comptroller's Certificate. Sub- stantially the following shall be printed on the back of each bond: I, II II Ii II I: ¡\ '" j II 'I ! I OFFICE OF COMPTROLLER x X I REGISTER NO. STATE OF TEXAS I HEREBY CERTIFY that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that this bond has been examined by him as required by law, and that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas, and that it is a valid and binding special obligation of the City of 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. '( II il I, II II II II Ii "I II II II .I I WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas, Comptroller of Public Accounts of the State of Texas ì II I! I SECTION 9: Definitions. For all purposes of this ordi- nance and in particular for clarity with respect to the issuançe of the bonds herein authorized and the pledge and appropriatiop 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, exten- sions, replacements and improvements in anywise appertaining thereto, whether situated within or without the limits of said City. ,! i II I I 11 i ¡ I \ ì (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 con- dition which would otherwise impair the security of any bonds payable from and secured by a lien on the net revenues of the System shall be deducted in determining "net revenues". I I! II .I /I I' ,! I' 'I II Ii I! 'í II i.:- II 'II Ii I I II ,I J \1 II \\ (c) The term "bonds" shall mean the $5,275,000 revenue bonds authorized by this ordinance. I! ¡I II ¡Iî ! i !I (d) The term "additional bonds" shall mean the additional parity revenue bonds which the City reserves the right to issue under Section 19 hereof. I J I! I i t I I ! ¡ II t !I I' r ,I II II I' ¡I II !I Ii Ij I' II I !, 'I II II II 'I II II I· II I ! I \; 'I h II Ii .' it (e) The "term "fiscal year" shall mean the twelve-month period ending September 30 of each year. (f) The term "bonds similarly secured" shall mean all bonds issued by the City which are secured by and payable from a first lien on and pledge of the net revenues of the System. SECTION 10: Pledge. All of the net revenues of the System, with the exception of those in excess of the amounts required to establish and maintain the Funds as hereinafter provided, are hereby irrevocably pledged for the payment of the bonds similarly secured and the interest thereon, and it is hereby ordained that such bonds and the interest thereon shall constitute a first lien upon said net revenues. SECTION ll: Rates and Charges. The City covenants and agrees with the holders of the bonds similarly secured that: (a) It will at all times charge and collect for services rendered by the System rates sufficient to pay all operating, maintenance, depreciation, replace- ment and betterment expenses, and other costs deductible in determining "net revenues" as herein defined and to pay the interest on and principal of the bonds similarly secured and to establish and maintain the Funds as hereinafter provided; and (b) If additional bonds are issued, or if the System should become legally liable for any other indebtedness, the City will fix and maintain rates and collect charges for the services of the System sufficient to discharge such indebtedness. SECTION l2: Fund from the operation of the other funds of the City. Funds are hereby created: Designations. All revenues derived System shall be kept separate from To that end the following special (a) City of North Richland Hills Waterworks and Sewer System Fundi, hereinafter called "System Fund". This Fund shall be kept in the City's depository bank. II I, ,J II !! II n II II :1 II q 'I Ii II I It II ! I, II Ii II II (b) City of North Richland 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 Trustee of the pledged revenues, and shall be used to pay principal of and interest on the bonds s~i1ar1y secured when and as the same shall become due and payable. II II !I I¡ , !' ! I II 'I (c) City of North Richland Hills Waterworks and Sewer System Revenue Bond Reserve Fund, here- inafter 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. II II f¡ ! ~ il II Î ¡ SECTION l3: System Fund. All revenues of every nature received through 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 there- from upon approval of the City Council. All revenues of the System not actually required to pay expenses and costs incurred as permitted by this Section shall be appropriated and used for the purposes and in the order of precedence hereinafter set forth. II I, H r ·1 I Ii Ii I I! II I, II !¡ !' ,! ¡¡ ¡' II I' II II íI H II . ì I ,I il í! II II II II II I' !I I' Ii ¡¡ I' II II iI \I Ii , I I r Ii n II II 11 It r ,I :1 p II SECTION 14: Interest and Sinking Fund. Immediately upon the issuance and delivery of the bonds herein authorized, the amount received from the purchasers of the bonds as interest accrued thereon to the date of delivery shall be deposited in the Interest and Sinking Fund. At such time as the System is acquired, the City shall commence monthly deposits into said Fund, such deposits to be made on or before the l5th day of each month and to be in an amount sufficient to accumulate the full amount required to meet the interest payment due March 1, 1972. On the l5th day of March, 1972, and on or before the 15th day of each month thereafter, the City shall deposit in said Fund an amount of money not less than one-sixth (1/6) of the next semi- annual installment of interest. In addition, commencing on the l5th day of September, 1976, and on or before the l5th day of each month thereafter, the City shall deposit in said Interest and Sinking Fund an amount of money not less than one-twelfth (1/12) of the next annual principal maturity. Said monthly deposits shall continue to be made until such time as the amounts on deposit in the Interest and Sinking Fund and in the Reserve Fund are equat to the amount of the outstanding indebtedness which said Funds were established to pay by the provisions of Sections l2(b) and l2(c) hereof. Any proceeds of the bonds found not to be required for the purchase or building of the System shall also be placed in said Fund, which shall reduce by such amount the sums which would otherwise be required to be placed therein from the revenues of the System. SECTION 15: Reserve Fund. It is the City's purpose and intent and the City hereby covenants that it will provide for the accumulation of and, when accumulated, will thereafter con- tinuously maintain in the Reserve Fund an amount not less than the average annual principal and interest requirements of all bonds secured by a first lien on and pledge of the net revenues Ii " ;1 II ¡ I II II II II II II II f I II II 1\ Ii r I II II II II II " Ii !I Ii i! I II 'I !¡ I' II ¡I Ii ¡ I, I II II 11 ¡¡ II II Ii ï I, II ¡. ;! I; I; 11 r ,I II :1 i II I; Ii ,I ¡ II of the System. When fully accumulated in accordance herewith, no further payments need be made into the Reserve Fund, except that whenever said Fund is reduced below such amount, monthly deposits shall be resumed as herein specified and continued until such time as the Fund has been fully restored. Money in the Reserve Fund may be, at the option of the City, invested or re- invested from time to time in direct obligations of or obliga- tions 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 securities of any of the kinds hereinabove specified, such obligations or securities 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 escrow in THE FORT WORTH NATIONAL BANK , Fort Worth , Texas, and shall be promptly sold and the proceeds 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. The amount to be accumulated and maintained in said Reserve Fund upon issuance of this series of bonds is hereby determined to be $457,500.00. To that end the City shall deposit the sum of $7,625.00 in the Reserve Fund on or before the l5th day of September, 1971, or on or before the 15th day of the month following the delivery of the bonds, whichever shall last occur, and on or before the 15th day of each month thereafter, until·· such time as said Fund shall total not less than $457,500.00, as aforesaid. In the event said Fund is reduced below that amount, monthly deposits shall be resumed and made on or before the l5th day of each month at the rate of not less than $7,625.00. SECTION l6: Deficiencies in Funds. 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 revenues of 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 l7: Excess Revenues. Any revenues in excess of those required to fully establish and maintain the Funds herein provided may be used for the redemption of bonds similarly se- cured, or may be transferred to the general fund of the City and used for any lawfu~~urpose. P ,! II I I 'I I i i L 'I I I J. II, I d I· t ji I I , I II I! ¡I II I SECTION l8: Security of Funds. All 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 of public funds, and such Funds shall be used only for the purposes permitted by this ordinance. SECTION 19: Issuance of Additional Parity Bonds. In addition to the right to issue bonds of inferior lien as author- ized by the laws of this State, the City reserves the right hereafter to issue additional parity bonds. The additional bonds when issued shall be payable from and secured by a first lien on and pledge of the net revenues of the System in the same manner and to the same extent as are the bonds authorized by this ordi- nance, and the bonds similarly secured 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 by this ordinance. (b) That each of the Funds created by this ordinance contains the amount of money then required to be on deposit therein. I, , (c) The net earnings of the System for (1) any consecutive 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 l.30 times the principal and interest requirements of all bonds similarly secured (after giving effect to the issu- ance of the proposed additional bonds) for the year when such requirements are the greatest, as such net earnings are shown by a report by a Certified Public Accountant. The term "net earnings" as used in this Section 19 shall mean the gross revenues after de- ducting the expense of operation and maintenance, but not deducting depreciation or expenditures which, under standard accounting practice, should be charged to capital expenditures. , , ¡ -I II I I I I II II II 'I II ,I II II II II Ii II II <- II II U Ii ¡, II 'I II II I, Ii II II ,I II II II II ¡I (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 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 addi- tional bonds as same mature. /1 :\' ¡ I! I I II II II II ¡, II II ìl I. II II II I. I! Ii II 1\ II II II II ,I I' II I! l' II Ii ¡I I (f) The ordinance authorizing 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 month from the date of the passage of the ordinance authorizing the issuance of the proposed additional bonds. 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 revenue 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 effect to the issuance of the proposed refunding bonds (and shall not give effect to the bonds being refunded following their can- cellation 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. \\ I, ,I i! Ii II II I! II II II 'I Ii II '1 ! Ii II 1'1 I I Ii j\ .j ¡¡ il1 I¡ 'I II Ii I Ii 1\ SECTION 2l: Records - Accounts - Accounting Reports. The City hereby covenants and agrees that so long as any of the bonds similarly secured or any interest thereon remain outstand- ing and unpaid, it will keep and maintain a proper and complete system of records and accounts pertaining to the operation 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 in Article ll13, 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 all such records, accounts and data relating thereto, and to inspect the System and all properties comprising same. The City further agrees that within 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; I I ~ ij h II il I ! 1 ~ ,I ~ II I" II ~ II II ~ " " 'I II U 'I II Ii I' II U ~ " 'i Ii II !, r ~ ~ 'I I, II II ,I I' ~ ~ ~ ~ H " ~ ~ 11 ~ ~ J ~I " ij 11 II ,I " I I I ~ II II I, I' J ~ ~ ~ ~ ~ II !! II II j1 " ¡¡ ~ ~ ~ I' ~ U (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 recommen- dations 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 prop- erties, 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. 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 fur- nish a copy of an operating and income statement in reasonable detail covering such period to any bondholder 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 con- tents 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 or Reserve Fund, or (b) defaults in the obser- vance or performance of any other of the covenants, conditions or obligations set forth in any ordinance authorizing the issu- ance of bonds similarly secured, the following remedies shall be available: I n II II ~ ij II il ~ II II .¡ f ,I ~ ,I II II h !I 1.1 ¡ Ii II ~ Ii I' II ~ I f I, " II ~ q ¡I! I ~ u ~ ~ II " II ,0 " U ~ I' ~ " H II I'i. ! il h ~ u ij h ~ II ~ I, " Ii " i¡ II r d p ij II I I n Ii II ~ q I, " " ~ ~ II I' II (l) The holder or holders of any of the bonds similarly secured 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 the bond ordinance. (2) 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 remedies 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. The City hereby further covenants as follows: (a) That it has the lawful power to pledge the revenues supporting this issue of bonds and has law- fully exercised said power under the Constitution and laws of the State of Texas, including said power existing under Articles 1lll through lll8, 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 bonds herein authorized, the rents, revenues and income 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 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 por- tion 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 certified 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 ~~quiring bonds for redemption) I' ,I 1\ II 1 I I 'I I Ii ¡i ,( 'I I¡ II Ii I' I' II í! !I i¡ Ii Ii h Ii ! ,ì ., Ii Ii II I ,i ¡¡ !í II ;1 II I: II II II Ii ,I !I II II Ii II ¡ íl ¡ II Ii q Ii ·1 I, II ~ ! " II II I, il II Ii f! íl II II " Ii Ii II 11 ¡¡ H I' ii II " I I d /;j II II I, II 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 prior to their regularly scheduled maturity by purchase in the open market or by exer- cise 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 effi- cient service to the inhabitants of the City. (d) That no free service of the System shall be allowed, and should the City or any of its agencies or instrumentalities make use of the ser- vices 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 systems 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 revenues, and the holders thereof shall never have the right to demand payment thereof out of funds raised or to be raised by taxa tion. 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 Uniform Commercial Code. SECTION 26: Mayor To Have Charge 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 Attor- ney General, registration by the Comptroller of Public Accounts, and delivery to the purchasers thereof. SECTION 27: Confirmation Of Sale. The sale of the bonds herein authorized to FIRST SOUTHWEST COMPANY and RAUSCHER PIERCE SECURITIES CORPORATION at the price of par plus accrued interest to date of delivery plus a premium of $ -0- is hereby confirmed and delivery of said bonds shall be made to said purchaser as soon as may be after the adoption of this ordinance, upon payment therefor in accordance with the terms of sale. II ¡: II 'I¡ 'I I Ii Ii 'I SECTION 28: Printed Legal Opinion On Bonds. The pur- chasers' obligation to accept delivery of the bonds herein authorized is subject to their being furnished a final opinion of Messrs. Dumas, Huguenin and Boothman, 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 appro- priate certificate pertaining thereto, executed by facsimile signature of the City Secretary, is hereby approved and authorized I ¡ Ii i1 II II :1 fJ " 11 11 Ii II II Ii II Ii II II !I ¡¡ II ., II II 'I I I I! II ¡ I ! I I Ii ~ 1 d II I¡ ¡ ! ¡ Ii I ! ! ¡'I Ii II Ii II II il II ¡¡ ¡ I , '1 II I' I SECTION 29: Emergency. That the public importance of this measure and the fact that it is to the best interest of the City to provide funds for the purposes set forth hereinabove at the earliest possible date constitute and create an emergency and an urgent public necessity, requiring that any rule providing for ordinances to be read more than one time or at more than one meeting of the City Council be suspended, and requiring that this ordinance be passed and take effect as an emergency measure, and any such rule or provision is accordingly suspended and this ordi- nance is passed as an emergency measure, and shall take effect and be in full force from and after its passage. PASSED AN> APPROVED, t~s th~e. /3,/" st ,;y of ¡:"r' 1971. /i I~/~{>;\ ~I!ÎI¡Jµ~, M/yo~ ;({}ty ofCL~t)l~Utf~ . ., ls Texas ATTEST:j ../,/ ¿ ~, /7 , : f' J) (V.~(~./· '-~ ~>--- 'ctty Secct'etar , City of North Richland Hills, Texas ~ (City Seal) APPROVED AS TO LEGALITY: L 7ß/~ C~~ttorney. City of North Rich1and Hills, Texas '¡ I, II II II ¡! ¡; Ii il :1 II \ . ~ .