Loading...
HomeMy WebLinkAboutORD 242 Authorizing the Issuance of Water System Revenue Refunding Bonds -----, I ~ l I r I. I ORDINANCE No. 242 15 ORDINANCE AUTHORIZING THE ISSITANCE OF $50,000 CITY OF WEST UNIVERSITY PLACE, TEXAS, WATER SYSTEJ..,1REVENUE REFUNDING BONDS, AND PROVIDING FOR THE PAYMENT THEREOF OUT OF THE REVENUES OF THE OITY'S WATER SYSTEM. ************* The City Commission of the City of West University Plaae, Texas, met in regular session at the Oity Hall within said City at 8 :00 P. M. on August 10, 1942, with the following mem'bers present, to wit: F. M. Mainous A. 1. Kerbow J. M. Dunningto n T. Wesley Woodard L. J. Martin Mayor Commissioner Commissioner Commissioner Commissioner constituting a quorum, when, among other proceedings, the fol- lowing business was transacted: Oommissiorer Kerbow introduced an Ordinance and moved its adoption. The Ordinance was read in full. The motion was seconded by Commissioner Woodard and carried by the following vote: Ayes - ~ommissioners Ker'tllow, Dunnington, Woodard, and Martin.. Noes - None. The Mayor announced that the Ordinance had been finally passed. The Ordinance thus adopted reads as follows: "ORDINANCE AUTHORIZING THE ISSUANCE OF $50,000 .CITY OF WEST. UNIVERSITY PLACE, TEXAS, WATER REVENUE REFUNDING BONDS AND PROVIDING FOR THE PAYMENT THEREOF OUR OF THE REVENUES OF THE CITY'S WATER SYSTEM. "WHEREAS, The Board of Commissioners of the City of West University Place, Texas, adopted an Ordinance on December 16, 1938, and thereafter amended on December 22, 1938, authorizing the issuance of $20,000 Oity of West University Place, Texas, Water Revenue Bohds, Series 1938, dated Decemher 15th, 1938, bearing interest at the rate of 4~ per annum, payable semi-annually, and maturing as follows: $4,000 on December 15, 1939. $5,000 in each of the years i.~40":;.~hrj))tlg1i 1946, .'both inclusive; $6,000 in each of the years 1947 and 1948; $7,000 in each of the years 1949 and 1950; $8,000 in the year 1951; $9,000 in the year 1952; $10,000 in each of the years of 1953 through 195;, both inclusive; $12,000 in each of the years 1956 and 1957, and $64,000 in the year 1958, with options of redemption as follows: , Bonds Nos. 151 to 200;' both inclusive, maturing on December 15, 1958, may be called for payment at 103~ per centum of the par value at any time on or after January 1, 1943, and prior to January 1, 1949; . ".; ,- .....,,~ 1:i UIlII [ :1 .H I JllljjT.' . II 1.; I LJ 6, and similarly at any time or times on or after January 1, 1949 and prior to January 1, 1951, to call said Bonds Nos. 151 to 200, both inclusive, at price of 103 per centum of the par value, ~o- gether with accrued interest; Bonds Nos. 66 to 200, both inclu- sive, may be called for payment at a price of 102 per centum of the par value with accrued interest at anytime on or after JanuaRY 1, 1951; and i~ I I I I ----' "WHEREAS, all of said bonds were issued, sold, and deliver- ed, and the same are now outstanding and unpaid except Bonds Nos. 1 to 14, both inclusive, which have heretofore been paid at maturity; and tf'WHEREAS, the owners and holders of J9;onds Nail. 151 to 200, " Doth inclusive, have agreed to ~urrender the same for exchange for the Refunding Bonds bearing a lower rate of interes.t, ,hereinafter described; and "WHEREAS, It will be to the mutual benefit of the. City of West University Place, Texas, and'the owners and holders of said . original bonds which are not'to~be refunded by the issuance of the hereinafter Refunding Bonds, hereinafter called the l1Unrefunded Bonds," to refund $50,000 principal amount of said bonds which be- come optional on or after January 1, 1943, thereby saving a sub- stantial amount in future, interest cost on said bonds and addiilgg to the security pledged for the payment of said Unrefunded Bonds; and "WHEREAS, the net revenues from the operations of the City's Water System have for the past several preceding years, been more than twice the amount of debt serv'ice requirements on the said proposed refunding bonds and the remaining unrefunded bonds as the debt service requirements will be after the proposed refunding has been completed; and .1 i . . I '1 I '--' ttWHEREAS, one of the principal reasons for retaining an option on said Bonds Nos. 151 to 200, both inclusive, was to permit the City to refund said Bonds at a lower interest rate and to shorten the maturities on saiq .bonds in order that the debt serVJice require- ments for the entire amount of water system revenue bonds out- standing would be made more equal and uniform: Therefore, - - , BE IT ORDAINED by the City Commission of the City of West University Place, Texas: 1. That the~Bonds of the City of=West University Place, Texa~, be issued in the principal amount of ~ifty Thousand Dollars ($50,000), to be known and designated as tfCITY OF V!EST UIUV.c;RSITY PLACE, TEXAS, WATER SYSTEM REVENUE REFUNDING BONDS, tI under and by virtue of the Constitution and Laws of the State of. Texas, and the nrovisions. of the Charter of the City of West University Place, Texas, for the purpose of refunding, cancelling, and in lieu of a like principal II I I ----' --j i -1 I J 1'1 amount of the Water Revenue .Bonds described in the preamble to this Ordinanc:e. II. Said bonds shall be dated August 15, 1942, shall be numbered from 1 to 50, both inclusive, shall be in the-denomination of One Thousand Dollars ($1,000) ea~h, aggregating $50,000, and shall become due and payable on the ~5th day of December during each of the years and in the respeC'ti ve amounts as shmm on the following schedule, to wit: Said Bonds shall bear interest at the rate of three per cent (31ol.'per annum, payable December 15, 1942 and semi-annually thereafter on the 15th day of June and December of each year until the principal sum is paid; the principal and interest on said bonds shall be payable in lawful money c5f the United States of America . upon presentation and surrender of bond or proper, coupon, at The City National Bank of Houston, Houston, Texas. IV. That each of said bonds shall be sig~ed by the Mayor and counter- signed by the City Seoretary, and the corporate seal of said City shall be impressed upon each of them. The facsimile signature of the Nl".ayor and City Se cretary may be lithographed, engraved or printed on the coupons attached to said bonds, and shall hawe the same effect as if they had been signed by said officers. v. That the form of said bonds shall be substantially as follows~ NO. $1,000. UNITED STATES OF AMERIOA STATE JJF TEXAS COU:r...1TY OF HARRIS CITY OF VIlEST. UNIVER$ITY PLACE, TEXAS WATER SYSTEM REVE1iJul!.: REIIDNDING BOND City of West University Place, in the County of Harris, in tIle I:! ::1: :.:.1 .:II 'Llr:Il:rliI'[ l 1111I IT. IT. . .1 . r. i.. _ . _ I.. _.1 ,:1 .8 State of Texas, for value received, hereby acknowledges itself indebted to and promises to pay to the bearer, or if' this bond be'registered as to principal, to the registered holder hereof, as hereinafter stated, on the fifteenth day of December, 19____, the sum of I I i~; ONE THOUSAND DOLLARS ($1,000) in lawful money of the United States of America, with interest thereon from date at the rate of 3~ per annum, payable on December 15, 1942, and semi-annually thereafter on June 15th and December 15th of each year, until the principal sum shall be paid, which interest is payable in lawful'money of the United States of America, upon the presentation and surrender of proper coupons as they severally become due, both principal and interest being payable at The City National Bank of Houston, in the City of Houston, State of Texas. This bond is subject to the condition and every holder hereof by accepting the same agrees with the ,obligor and every subsequent holder hereof that (a) the delivery of this 'bond to any trans1teree if not re- gistered if the last registered transfer be to bearer, shall west title in this bond and the interest repre- sented thereby in such transferee to the same extent for all purposes as would the delivery under like circum- stances of any negotiable instrument payable to bearer;' (b) the obligor and any agent of the obligor may treat the bearer of this bond, or if it be registered in the name of a holder, the registered holder of thi s bond, as the absolute owner hereof for all purposes and shall not be affected by any notice to the contrary; (c) the principal of and the interest on this bond will be paid, and this bond and each of the coupons appertain- ing thereto are tranSferable, free from and without re-. gard to equities between the obligor and the original or. any intermediate holder hereof or amy set-offs or cross- cla ims; and (d) the surrender to the obligor or any agent of the Obligor of this bond and of each of the coupons if not regis- tered, or if it be registered if the last registered transfer be to bearer, or the receipt of the registered holder for the ~r~ncipal hereof and interest hereon if this bond be registered in the name of a holder, shall be a good discharge to the obligor for the same. At the option of the holder this bond may be registered as to pr~ncip~l at the office of the City Sscretary in the City of West U-r Un1vers~ty Place, State of Texas, and'such registration noted here- on by the City Secretary, as Registrar. 'After such registration, .j i ..----, l I 19 upon delivery to the City Secretary of a written instrument of transfer, in the form approved by the Oity of West University Place, executed by the registered holder in person or by his attorney thereunto duly authorized, this bond may be trans- ferred, and such transfer shall be similarly noted thereon, and no tpansfer hereof shall be valid unless so made; but this bond may be discharged from registration by being in like manner transferred to bearer, and ~ereupoa transferability by delivery shall be restored, and this bond may again from time to time be registered to bearer as before. Ho su.ch registration shall affect the negotiability of the coupons appertaining hereto, which'shall continue to be transferable by delivery, merely, and shall remain payable to bearer. This bond is one of a series of bonds of like tenor and effect, except as to demomination and maturity, numbered 1 to 50, both inclusive, in the denomination of $1,000 each, aggregating, the sum of $50,000 issued by the Oity of West University Place, Texas, for the purpose of refunding, cancelling and in lieu of a like principal amount of the $200,000 City of West University Place, Texas, Water Revenue Bonds, Series 1938, dated December 15, 1938, in accordance with the Constitution and laws of the State of Texas, the provisions of the City Charter of said City, and pur- suant "bo an ordinance passed by the Board of Commissioners of the Oity duly recorded in the Minutes of the Board of Oommissioners. The date of this bond, in conformity with the ordinance above mentioned, is August 1.5, 1942. . This bond and the series of which it is a part constitute special obligations of the City of West University Place, Texas, and, together with the remaining unrefunded bonds of the Water Revenue Bonds described in the second' preceding paragraph, are payable from and secured by an exclusive first lien on and pledge of the revenues of the City's Water System, after deduction of reasonable operation and maintenance expenses. The holder hereof shall ~ever have the right bo demand pay- ment of this obligation out of any funds raised or to be raised by taxation. It is hereby certified 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 property done, have happened and have been per~or.med in regular and due time, form and manner re- quired by the Constitution and the laws of the State of Texas, and the ordinance hereinabi>ve mentioned, and that tlhihs series of revenueb~nds does not exceed any ~onstitutional or statutory limitations, and, that provision has been made for the payment of the principal and.interest of this bond and the series of which it is a part by irrevocably pledging the revenues of said water system of said City of West UniverSity Place. r::: m. II J L ._~ ~o IN TESTIMONYWHEREOF~ the Board of Oommissioners of the Ci. ty of West University Place, Texas, has caused the seal of said City I.J:,:.. to be hereon impressed and this bond to be signed by the Mayor of said City, countersigned by the City Seeretary and registered by the City Treasurer and has caused the annexed coupons to be signed by the fac-simile signature of the Mayor and the City Secretary. MAYOR, City of West University Place, Texas COUNTERSIGNED: City Secretary REGISTERED: City Treasurer VI. . The form of said coupons shall be substantially as follows: No. $ ON THE FIFTEENTH DAY OF ,19_ If !J the City of West University Flace, Texas, will pay to the bearer, from the revenues of the. City's Water System, after deduction of reasonable operation and maintenance expenses, at the office of The City National Bank of Houston, in the City of HOuston, Texas , the sum of . DOLLARS in lawful money of the Unmted States of.America, said sum being interest due that day on 11Ci ty of West Urii versi ty PlaC's, Texas, Water System Revenue Refun.ding BOhd" bearing the number hereon specified, dated August 15, 1942. 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. Bond No. . MAYOR City Secretary [] J --I ~ ____-L_.. . 21 VII. That substantially the fOllowing shall be printed on the back of each bond: OFFICE OF COMPTROLLER STATE OF TEXAS . . I, Hereby Certify that there is on file and of record in my office a cBrtificateof 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 said City of West University Place, Texas, payable from the revenues pledged to its payment by and in the ordinance authorizing same, and said bond has this day been registered by me. ' WITNESS MY HAND and seal of Office at Austin, Texas, this the day of , A. D.., 1942. COMPTROLLER OF PUBLIC ACOOUNTS of the State of T E X A S. VIII. The form of Registratioh Endorsement shall be substantially as follows: (No writing hereon except by the City Secretary of the City of West University Place, Texas ,as Registrar) . DATE OF REGIS- IN WHOSE NAME REGISTERED TRATION REGISTRAR City Secretary Oity Secretary City Secretary City'Secretary City Secretary City Secretary City Secretary Lr ,I..' 11 'TI[[lJI :] wu ... Ii.. u I L.LJ .2 . r. IX. In this ordinance the termtlsysten.J.tl shall inolude and mean .11~[. the Water System of said City, together with the oompleted project and any additions thereto and improvements and replaoements there- of. The term "Bonds" as used in this ordinana.e, except where a oontrary intention is clearly expressed, shall include and mean the Refunding Bonds herein authorized, and the outstanding unre- funded bonds of the Oity of West University Place, Texas, Water Revenue Bonds, Series 1938, of which, the bonds to be refunded by the issuanoe of the series herein authorized, are a part. It is expressly provided that the issuance of the Refunding BOnds here- in authorized shall not in any manner impair the payment or. security-of payment of the unrefund~d bonds of said 1938 s~ries, but both the Refunding Bonds and unrefunded bonds shall be on a parity and shall be payable from, and &eeured by, a pledge of, and lien on, the revenues of said Water System and any additions thereto and improvements and replacements thereof, in such a manner that no bond in either series ~hall have priority or preference over any other bond of said serie s. . x. The Board of Commissioners shall at all times while any of said bonds, or any interest thereon, are outstanding and unpaid, 10 charge and collect for servi~es rendered by said System rates suffi- cient to pay all maintenance, depreoiation, replaoement, better- ment, and interest oharges, and for interest and Sinking. Fund suffioient to pay the interest and prinoipal of said bonds as suoh principal and interest matures and acorues and any outstand- ing indebtedness against the system, as is required by Artiole 1113, 1925 Revised Civil Statutes of Texas and amendments thereto. For the benefit of the original purohaser, and for the benefit . of any and all subsequent holders of said bonds~ coupons, or any part thereof, and in addition to all other provisions and oonve- nants in the laws of the State. of Texas and in this ordinanoe, it is expressly stipulated: . A. RATES: The City shall fix and maintain rates and oollect charges for the facilities and services afforded by the System, whioh will provide revenues sufficient at all times: (f) To pay for all operations, maintenanoe, depreciation, -replacements and betterment charges of the System. (2) To establish and maintain the Bond Fund provided for the payment of the unrefunded bonds and further to establish and maintain the Refunding Bond Fund for the payment of the principal and interest on the bonds herein authoriz- ed. (3) To pay all outstanding indebtedness against the System, other than the bonds, as and when the same beoomes due. ..] '::~, . '" 'ir.t." -;. 23 -1 I Provided also 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 services and facilities of the System, payment of the reasonable value thereof shall be made by the City out of funds de- rived from sources other than the revenues and income of the System. B. USE OF REVENUES. The City will deposit as collected all revenues derived from the operation of the System into a separate account (herein called the "System Fundi') which shall be kept separate and apart from all other funds of the City. The System Fund shall be .administered as follows: . (lr~FUNDING BOND.;;;:;;;~";~~~--t~~.-~unds ~~ t1].:~- s;stem Fund, th~\\.' ! City shall pay into th_e Refunding Bond Fund. a su.m sufficient to pay the accrued in~erest on the outstanding bonds f~r a \ perfod of l8mqnths; and, in-addition thereto, a sum equal '\ 'to the amount ~f 'principal maturing 'in the next succeeding \ ! year; all of which accumulated funds are to be held ion trust \ in the Refunding Bond Fund and disbursed therefrom only ~or the purposes authorized by law. It is the intention of this I \ provision that the sums paid into the Refunding Bond Fund shall I be in excess of the immediate requi.rements for payme!1t of . I interest on the principal of the bonds, until there has been I accumulated in the Refunding Bond Fund, as a reserve for con- I tingencies, an amount sufficient to service the bonds for J '~18 months; and, in addition ,thereto, a sum equal to the // ~~*~l'~U~~~;~fu~~t~~g~~aTn:,e~~-~~f~iy~ for the purpose of paying interest on and principal of the borras, and for such other purposes as may be authorized by law, until all bonds have been retired. The moneys paid into the Refunding Bond Fund shall be deposited in a bank or banks and shall be continuously secur$d by a valid pledge to the City of direct obligations of the United States of America haVing an aggregate mar~et value, exclusive of accrued in- terest, at all times at least equal to such Bond Fund. The Refunding Bond Fund, at the option of the City, may be in- vested in such direct obligations of the United states of ~~rica, or as otherwise authorized and permitted by law, and deposited in escrow under an escrow agreement. If such funds, or parts thereof, are so invested.and deposited in escrow, the City shall have the right to have sold through the escrow agent, on the open market, a sufficient amount of such securities in order to meet its obligations of prin- cipal and interest in ,the event it does not have SUfficient funds uninvested on hand for such purpose. Under such cir- cumstances, the Mayor is hereby authorized, ordered and di- rected to give 15 days written'notice to the escrow'agent of the necessity to sell said securities, qr part of same, on the open market. As to such sale, the moneys resulting there- from shall belong to the Refunding Bond Fund shall be avail- able to pay such obligations of principal and interest. (2) SURPLUS. Any funds remaining in the System Fund after,pro- vision for the reasonable cost of operating and I~intaining the System and after paying the amounts required to be paid into the Bond Fund and Refunding Bond Fund, as above prov'ided, ,:~: 1. ~ ::..2 . .l.[ . :. I ~:ll !J:1l:J ~4 Jillill 11 : L. LJ I I' ,- ~ J ~l , i '25 XI. The Mayor, City Secretary and City Treasurer are hereby instructed and directed to do any and all things .necessary and/or convenient in reference to the installing and maintaining of a complete system of records and accounts pertaining to said System and to make the money~'available for the payment of said Revenue Bonds in the manner provided by Chapter 122, Acts of the Regular Session of the Forty-third Texas Legislatm.re, effective May 12, 1933. In accordance with the provisions of Article 1113, 1925 Revised Uivil Statutes of Texas, as amended, the fiscal year for the operation of such system shall be January 1st to D~cember 31st of each year. The remaining part of 1942 shall constitute a fractional part of a fiscal year. XII. The City further covenants by and through this ordinance as follows: (a) That the Revenue Bonds authorized hereunder shall be special obligations of the City, and the holder thereof shall never have the right to demand payment thereof out of funds raised 0r to be raised by taxation. (b) That it has the lawful power to pledge the Reve.nue supporting this issue of bonds and has lav~ully exercised said power under the Constitution and laws of the State of Texas, in- cluding power existing under Articles 1111 to 1118, both in- clusive, 1925 revised Civil Statutes of the State of Texas, with amendments thereto; that the bonds issued hereunder 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 issue. (c) That other than for the payment 'of the bonds herein provided for, the rents, revenues and income off the said Water System have not in any manner been pledged to the payment of any ,debt or obligation of the City, nor of said System. liiIII. The bonds thus authorized shall pass by delivery unless re- gistered as to ownership on the books of the City Secretary, as registrar, but after such registration of ownership duly noted on the bonds no transfer except on said books shall be valid unless the last registration shall be to bearer, and said bonds shall continue to be subject to registration and to transfer to bearer at the option of the holder. :xlIV. That the owners and holders of the bonds herein authorized shall be subrogated to all the rights and privileges had and possessed by the owners of the bonds which have been refunded by the issuance of this series, and the pledge of, and lien on, the net revenues of, the System Which the refunded bonds share with the unrefunded bonds ,of the 1938 series, shall attachr;andbe made 1 .J II '[::J[m. 'J I mr IT: J L I ~6 applicable to the refunding bonds herein authorized in all respects, as though the refunded bonds had not been exchanged for the're- funding bonds herein authorized. xv . The Mayor is hereby authorized to take and have charge of the record of said Refunding Bonds and of the bonds themselves and shall present the same to the Attorney General of Texas for approval and thereafter to have them registered by the Comptroller of Public Accounts of the State of Texas. The Comptroller shall not register any of said Refunding ljond s until a- like principal amount 01' the bonds to be refunded ha~e been surrendered to him for cancellation. Upon surrender and cancellation of the original bonds, the Comptroller is authorized to deliver a like principal ~ount of the Refunding Bonds herein authorized to the owners and holders surrendering their original bonds for cancellations. PASSED AND JfP PROVED this Oth day of August, 1942. . West University TEXAS ATTEST: ~~ City Secretary Il I 1 ~ o