HomeMy WebLinkAboutORD 541 - ORD Amending ORD Authoring Issuance $ 85000, Water Revenue Refunding Bonds
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ORDINANCE NO. ~4l
AN ORDINANCE AMENDING AN ORDINANCE AUTHORIZING THE
ISSUANCE CF EIGHTY FIVE THOUSAND ($85,000.00) DOLLARS
WATER REVENUE REF UNDING BONDS; PRESCRIBING THE TERrvrs
AND CONDITIONS THERECF; RESERVING THE RIGHT TO ISSUE TO
THE EXTENT PERMITTED BY LAW, ADDITIONAL BONDS UPON
CERTAIN CONDITIONS; AND MAKING PROVISION FOR THE PAYMENT
OF PRINCIPAL AND INTEREST ON SUCH BONDS
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WHEREAS, the City Commission of the City of West University
Place, Texas, passed an ordinance on the lOth day of November, 1950,
authorizing the issuance of Eighty Five Thousand ($85,000.00) Dollars Water
Revenue Refunding Bonds; and
WHEREA.S, Section 20 of said ordinance should be amended;
Therefore
BE IT ORDAINED by the City Commission of the City of West
University Place, Texas:
That Section 20 of the ordinance adopted by this City Commi~sion
on the 10th day of November, 1950, authorizing the issuance of Eighty Five
Thousand ($85,000.00) Dollars Water Revenue Refunding Bonds, be, and it is
hereby, amended, so that^itOshall hereafter read and be as follows:
Section 20! ADDITIONAL BONDS: When all of the Ten Thousand
($10,000.00) Dollars Water Revenue Refunding Bonds, dated August 15, 1942,
now outstanding, have been retired and none of said bonds remains outstand-
ing, the City reserves the right hereafter, to the extent permitted by law,
to issue additional bonds. As above stated, the Eighty Five Thousand
t$85,ooo.00) Dollars of bonds directed by this ordinance to be issued shall
be called ltBondsU and the additional bonds shall be called "Additional
Bondslt. The Additional Bonds, when issued, may be secured by and payable
from 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
ordinance, and 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. It is prOVided, however, that none of the Additional Bonds
shall be issued unless:
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(a) Each of the Funds created by this ordinance contains the
amounts of money then required to be on deposit therein.
(b) The Net Earnings of the System for each of the two (a)
twelve (12) calendar months periods next preceding the adoption of an
ordinance authorizing the issuance of Additional Bonds shall have been
at least one and one-half (1-1/2) times the maximum debt service require-
ments coming due in any calendar year on the bonds of this issue then out-
standing, and such proposed Additional Bonds, as such Net Earnings are
shown by a report by an independent public accountant. The term 'tNet
Earnings" as used in this Section 20 shall mean the gross revenues after
deducting expenses of operation and maintenance, but not deducting expen-
ditures which, under standard accounting, practice, should be charged to
capital expenditures.
(c) A competent independent engineer certifies in writing his
op~n~on as to the annual expenses and income and net ear~ings of th~ System
throughout the life of the Bonds, and the Additional Bonds, and such opinion
shows that the average annual Net Earnings from the System will be at least
one and one-half (1-1/2) times the average annual requirements for the pay-
ment of principal and interest on the outstanding Bonds, and the Additional
Bonds.
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(d) The Additional Bonds. are made to mature on December 15th in
each of the years in which th~are scheduled to mature.
Nothing in this ordinance, however, shall be construed to prevent
the issuance of bonds payable from the revenues of the System other than the
Bonds and the Additional Bonds specified in this ordinance, so long as the
lien of such other bonds on the revenues of the System is made junior and
subordinate in all respects to the Bonds, and Additional Bonds, as provided by
Chapter 249, 51st Legislature, Regular Session, 1949."
That, except as hereinabove amended, said bond ordinance
adopted on the lOth day of November,~m950, shall remain in full foree
and effect.
PASSED AND APPROVED this 29th day of December. 1950.
Mayor,
Unive sity
ATrEST:
City Secretary, Ci
University Pla
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