HomeMy WebLinkAboutORD 1063 - ORD Authorizing Issuance and sale of $1,700.000 General Obligation Bonds
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ORDINANCE NO. 1063
ORDINANCE AUTHORIZING ISSUANCE AND SALE OF $1,700,000
GENERAL OBLIGATION BONDS, SERIES 1976; LEVYING TAXES
TO PROVIDEFp~ ,PAJMENT THEREOF; APPROPRIATING $1,700,000
OF PROCEEDS OF,SALE'THEREOF FOR VARIOUS, PROJECTS; AND
CONTAINING ,OTHER PROVISIONS RELATING THERETO.
THE STATE OF TEXAS ' ,I '
COUNTY OF HARRIS 1
CITY OF WEST UNIVERSITY PLACE I
, WHEREAS, the bonds hereinafter authorized were duly and favorably
voted at an election held in the City of West University Place (the "City")
on the lOth day of February, 1976; and
WHEREAS, the City Commission has advertised for and received bids
for said bonds and now deems it advisable to issue, sell, and deliver said
bonds;
THEREFORE, BE IT ORDAINED' BY THE CITY COMMISSION OF THE CITY OF
WEST UNIVERSITY P~ACE" THAT: '
Section 1. Authorization to Issue Bonds. The City.s negotiable,
serial, coupon bonds to be designated City of West University Place, Texas,
General Obligation Bonds; Series 1976 (the "Bonds"), are hereby authorized
to be issued arid dellvered in the principal amount of>$l ,700,000 for thefol-
lowing public purposes:
(1) $860,000 for constructing permanent drainage
improvements for the City;
(2) $490,000 for constructing permanent street
improvements for the City; and
(3) $350,000 for improving land for park purposes
for the City.
Section 2. Aooroval of Sale. The Bonds are hereby sold and shall
be delivered to First City National Bank of Houston and Texas Bank and Trust
Company of Dallas for the par value thereof and accrued interest thereon to
date of delivery, plus a premium of $0.00; subject to the issuance ofunqualified
approving opinions as to the legality of the Bonds by the Attorney General of the
State of Texas and by Vinson, Elkins, Searls, Connally & Smith, bond attorneys
Houston, Texas. The City Commission hereby finds that the bonds' have been sold
at the best price obtainable.
Section 3. Date and Maturities of Bonds. The Bonds shall be dated
April 1, 1976, shall be numbered consecutively from 1 through 340, shall be in
the denomination of $5,000 each, and shall mature serially on April 1 of each
year from 1977 to 1993, both inclusive, in the principal amount of $100,00 per
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year. The Bonds maturing in 1992 and 1993:may be redeemed prior to their
scheduled maturities, at the option of the City, on the dates stated and
in the manner provided in the FORM OF BOND set forth in Section 6 of this
Ordinance.
Section 4. Interest Rates. The'Bonds shall bear interest at
the respective rates per annum set forth in the table below:
Maturity
1977
1978
1979 ' ,
,1980
1981
1982
1983
1984
1985
Rate Maturity Rate
5.25% 1986 4.60%
5.25% 1987 4.70%
5.25% 1988 4.80%
4.75% 1989 4.90%
4.00% 1990 5.00%
4. 1 0% 1991 5.00%
4.25% '1992 5.10%
4.40% 1993 5.25%
4.50%
Interest.payable on the Bonds shall be evidenced by interest coupons attached
to the Bonds and shall be payable on October 1,1976, and on April 1 and
October 1 in each year thereafter until maturity or redemption of the Bonds.
Section 5. Pavin<iA<ient. The PaYing Agent for the Bonds shall
be Fi rst Ci ty Nati ona 1 Bank of Houston, Houston; Texas, or such other enti ty
as may herea'fter be designated by the'City to make principal and interest
payments on the Bonds:
Section 5. Form of Bonds. The Bonds, the interest coupons ap-
pertaining thereto, and the registration certificate of the Comptroller of
Publ i c Accounts of the State of Texas shall be in substanti ally the followi ng
forms with such omissions, insertions and variations as may be necessary or
desirable and permitted by the terms of this. Ordinance. ' Lithographed or printed
facsimile signatures of the Mayor and the City Secretary shall be used to sign
or countersign the Bonds and coupons as indicated below, and the Ctty.s seal
shall be impressed or placed in facsimile on each,Bond.Said facsimile signa-
tures shall have the same effect as if each Bond and coupon had been signed
manually and in person, and the facsimile seal shall have the same effect as
iJ the City's official seal. had been impressed' thereon. The certificate of the
Comptroller' of Public Accounts of the State of Texas shall be manually signed
a$ provided in Section 16 of this Ordinance. The approving opinion of Vinson, ,
E~kins, Searls; Connally & Smith, bond attorneys, Houston, Texas, may be printed
on the back of the Bonds, over the certification of the City Secretary, which may
be executed in facsimile.
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FOR~ OF BOND:
$5,000
NO.
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF HARRIS
CITY OF WEST UNIVERSITY PLACE, TEXAS
GENERAL OBLIGATION BOND
, SERIES 1976
ON APRIL 1 ,19 , the CITY OF WEST UNIVERSITY PLACE (the "Ci ty") ,
in the County of Harris, State of Texas, promises to pay to bearer the prin-
cipal amount of
FIVE THOUSAND DOLLARS
an to pay interest thereon, from the date hereof, at the rate of 4.806536% per
annum, on October 1, 1976, and semi -annua lly thereafter on each Apri 1 1 and
October 1 of each year until maturity or redemption of this Bond. This Bond
and the interest coupons appertaining hereto shall be payable, without 'exchange
or collection charges ,to the bearer thereof , in coin or currency' whi ch is legal
tender for debts due in the United States of America, upon presentation and sur-
render of this Bond or said coupons as same become due, at FIRST CITY NATIONAL
BANK OF HOUST, Houston, Texas (the "payingagent").
THIS BOND is one of a series of negotiable coupon bonds, dated April 1,
1976, issued in the principal amount of $1,700,000 for the following public pur-
poses:
(1) $860,000 for the construction of permanent drainage
improvements for the City;
(2) $490,000 for the constructi on of permanent street
improvements for the City; and
(3) $350,000 for improving land for park purposes for
the City;
in accordance with Chapters 1 and 70f Title 22 and Chapter 6 of Title 103,
Revised Civil Statutes of Texas, as amended, and pursuant to an election held
within the City on February 10, 1976.
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ON APRIL 1, 1991, OR ON ANY INTEREST PAYMENT DATe THEREAFTER, the
outstanding Bonds of this series may be redeemed prior to their scheduled
maturities, at- the option of the City, in whole, or in part, in inverse numerical
order, for the principal amount thereof and accrued interest thereon to the date
fixed for redemption. At least, thirty days prior to the date fixed for any such~
redemption, the City shall cause a written notice of such redemption to be mailed
to the paying agent and published at least once in a financial publication of
general circulation in the United States of America. By the date fixed for any
such redemption, due provision shall be made with the paying agent for the pay-
ment of the required redemption price. If such written notice of redemption is
, publihsed and if due provision for such payment is made, all as provided above,
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the Bonds which are to be so redeemed shall no longer be regarded as being
outstandi ng except for the purpose of bei ng pa i d by the payi ng agent wi th !:il'
the funds provided for redemption, and the right of the bearers to collect
interest on such Bonds that would otherwise accrue after the redemption date ~ j
shall be terminated. L-J
IT IS HEREBY certified, recited, and covenanted that this Bond
has been duly and validly voted, authoriz~d, issued, and delivered; that
all acts, conditions, and things required or proper to be performed, exist,
,and be done precedent to or in the issuance and delivery of this Bond have
been performed, existed, and been done in accordance with law; and that an-
nual ad valorem taxes sufficient to provide for the payment of the interest
on and principal of this Bond, as such interest comes due and such principla
matures, have been levied and ordered to be levied against all taxable pro-
perty in the City and have been pledged for such payment within the limits
prescribed by law. '
IN-WITNESS WHEREOF; this Bond and the interest coupons appertaining
hereto have been signed with the facsimile signature of the Mayor of the..City
and countersigned with the facsimile signature of the City Secretary, and the
official seal of the City has been duly impressed, or placed in facsimile, on
this Bond, all as of the 1st day of April, 1976. '
, Mayor
CITY OF WEST UNIVERSITY PLACE,
TEXAS
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COUNTERSIGNED: '
City Secretary
CITY OF WEST UNIVERSITY PLACE,
TEXAS
( SEAL)
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FORM OF REGISTRATION CERTIFICATE:
COMPTROLLER'S REGISTRATION CERTIFICATE
REGISTER NO.
I hereby certi'fythat this Bond has been examined, certified as to
validity, and approved by the Attorney General of the State of Texas, and that
this Bond has been registered by the Comptroller: of Public Accounts of the State
of Texas. "
WITNESS my signature and seal this
(SEAL)
Comptroller-of' Public Accounts of
the State of Texas
FORM OF INTEREST COUPON:
NO.
$
, ON 1, 19 *
the CITY OF WEST UNIVERSITY PLACE, 'in the County of Harris, State of Texas,
promises to pay to bearer, jncoin or currency which is legal tender for debts
due i nthe Urii ted States 'of Arrieri c'a, wi thout, exchange or co 11 ecti on charges,
the sum of $ , upon presentation and surrender of this interest cou-
pon, at FIRST CITY NATIONAL BANK OF HOUSTON, Houston; Texas, said amount being
interest due that day on the Bond bearing the number hereinafter designated of
that issue of CITY OF WEST UNIVERSITY PLACE; TEXAS, GENERAL OBLIGATION BONDS,
SERIES; 1976, d~ted April' l~ 1~76: Bond No.
City Secretary
Mayor
*Coupons maturing after April 1,1991, shall contain the following additional
clause:
"unless the Bond to which this coupon appertains has been
called for prior redemption and due provision has been
made to redeem the same,"
Section 7. Greation of Funds. Two special funds or accounts to 'be
designated the "City of West University Place, Texas, General Obligation Bonds,
Series 1976, Construction Fund" (hereinafter called the IIConstruction Fundll) and
the"City of West University Place, Texas, General Obligation Bonds, Series 1976,
Interest and Sinking Fund" (hereinafter called the "Interest and Sinking Fund")
are hereby created and shall be established and maintained by the City at an offi-
cial depository bank of the City. Both such Funds shall be kept separate and a-
part from all other funds and accounts of the City. Bond proceeds deposited in
the Construction Fund shall be used only for payment of expenses incurred by the
City in connection with the issuance of the Bonds and for the purposes authorized
in Section 11 of this Ordinance. Bond proceeds deposited in the Interest and
Sinking Fund shall be used only for paying the interest on and principal of the
Bonds. All ad valorem taxes levied and collected for and on account of the Bonds
shall be deposited, as collected, to the credit of the Interest and Sinking Fund
and shall be used only for paying the interest on and principal of the Bonds.
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Section 8. Levy'of'Taxes. Duri.rig each year while any of the Bonds
or interest coupons appertaining thereto are outstanding and unpaid, the' City
Commission of the CitY shall compute and ascertain a rate and amount of ad
valorem tax which will be sufficient to raise and produce the money required
to pay the interest on the Bonds as such interest comes due and to provide
and maintain a sinkini;(fundadequate to pay the principalof the Bonds as such
principal maturesbut'neverless'than 2% of the original principal amount of
the Bonds as a sinking fund each year, and said tax shall be based on the latest
approved tax rolls of the City, with full allowance being made for tax delin-
quencies and the cost of tax collection. Said rate and~ amount of ad valorem
tax are hereby levied, and are hereby ordered to be levied, against all taxable
property in the City for each year while any of the Bonds or interest coupons
appertaining thereto'ore,'outstariding and unpaid; and said tax shall be assessed
and collected 'each such year and deposited to the credit of the Interest and Sink-
ing Fund. Said ad valorem taxes sufficient to provide for the payment of the
interest on' and principal of the Bonds, as'such interest comes due and such
principal matures, are hereby pledged for such payment within the limits prescribed
by law.
Section 9. · Investments and Earnings. Moneys deposited into the Interest
and Sinking Fund and"the Construction Fun'd may be 'invested or reinvest,ed in any
manner permitted under laws. of the State: of Texas:. . The City may provide for
such investment of such Funds by the officia:l' depOSitory ,bank of the Gity pur-
suant to any written depository contract heretofore or hereafter authorized by
City ordinance. All investments and any profits realized from or interest ac-
cruing,on such:investments shall belong to the Fund from which the moneys for
such inves,tments:were taken;':provided~ howeiver','that in the discretion of the
City Commission the profits realized from a.nd ihterestaccruirig on investments
made from the Construction Fund may be transferred to the Interest and Sinking
Fund. If any moneys are so invest~d, the City shall have the right to have
sold in the open market a sufficient amount of such investment to meet its obli-
gations in the event any fund does not have a sufficient uninvested balance on
hand to meet thei'obligatio'ns'payable out' of' such 'fund. Under such circumstances,
the City shall cause the sale of such investments in the open market. After such
sale the moneys resulting therefrom shall belong to the fund from which the
moneys for such inves'trrientswere'taken. The City shall no.tbe,responsible to
the holders of the Bonds :for' any loss arfsingout o.f the, sale of., any fnvestments.
Section 10. Accrued Interest and Premium. Immediately following de-
l.i very of the Bonds to the purchaser, thereof, the accrued i nteres t and premi um,
if any; shall be deposited in the,Inte~est ~rid Si~kin~Fund. .
Section '11. Aoorooriationof Bond Proceeds. Out of the proceeds
of sale of the Bonds, the following sums are hereby 'appropriated and ordered
to be deposited in the Construction Fund and used ,and expended for the following
indicated publi~ purpo~es,respectively, as .prdvided in Ordinance 'No. 1055
addpted on January 12, 1976, :calling the Bond election held in the City on
February 10, 1976:
(1), $860~OOO for constructing permanent 'drainage impr.ovements
, for the Gity; ,
(2) $490,000 for constructing permanent street improvements
. for the City; and '
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(3) $350,000 for improving',Hlands' for park purposes for
the City.",
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Secti on 12. ,No Arb'ftraqe. The City certiffes' that based upon a 11
facts, estimates andcirc'umstances now known or reasonably expected to be in
existence on the date the Bonds are delivered and paid for, t~e City reason~
ably expects that the proceeds of the Bonds will not be used in a manner that
would cause the Bonds or any portion of the Bonds to be an "arbitrage bond"
under Secti on 103 Cd)( 2) of the' Internal ' R~venue Code of 1954, as amended,
and the temporary and proposed regulati'ons heretofore prescribed thereunder,
includi~g, withoutlimitation~ Sect1o~s 1~103~13and 1.103-14 of'~heHproposed
regulations published in the Federal Reqister on May 3, 1973 and December, 3~
1975. Furthermore, all officers, employees and agents of the City are author-
ized ~nddirected to provide certifitat10ns offa~tsi esti~ate~ and circum-
stances which are material to the reasonable expectations of the City as of
the 'date the Bonds are delivered:and 'paid for~ a'nd any such certifications
may be relied upon by' counsel, by the owners or holders of the Bonds, or by
any person interested in the exemption of interest on the Bonds from Federal
income taxation. Moreover, the city covenant~,th~t it shall make such use of
the proceeds of the Bonds, regulate investments of proceeds of the Bonds, if
necessary, and take such other and further act40n as may be required so that
the Bonds shall not be' "arbitr'age bondsi'urider Section l03(d) 'of "the Internal
, Revenue Code of 1954, as amended, and regulations prescribed from time to'
ti me thereunder. .
Section 13. Mutilated.Lost~'Destroved or'Wro'iiofullv Taken Bonds',
, or Coupons. If the 'owner of, ~ny'Bo'n'd or interest coupon cla'ims, ,that it has
been mutilated" lost,destroye'd, ,or'wrongfillly taken, the City, i'ri conformity
with the applicable provisions o,fSection 8.405, Texas Business and Commerce
Code, and Article 7l5a~ Vernon's' Texas Civil Statutes, as present.1y existing
or as hereafter amended, may execute anew Bond or coupori'of like, tenor and
date to replace themutilate9, lost, destroyed, or wrongfully taken Bond or
coupon'." ,"
Section 14. CUSIPReoistration. The Mayor of the City may secure
the printing of identification numbers on the back of the Bonds through the
CUSIP Service' Bureau Division of Standard & Poors Corporation, New York, New
York., Neither the failure'to print suchCUSIP number on any Bond nor any er-
ror with respect thereto shall constitute cause for failure or refusal by the
purchaser thereof to accept delivery of or pay for the Bonds in accordance with
the terms of the sale thereof. All expenses in relation to the printing of
CUSIP numbers on the Bonds and the CUSIP Service Bureau charge shall be paid
by the City from the proceeds of the Bonds.
Section 15. Ordinance is Contract. In consideration, of the purchase
and acceptance of the Bonds, the provi si ons of thi s Ordi,nance shaH be' de~med
to be and shall constitute a contract between the City anrlthe holder-sof the
Bonds, and the covenants and agreements herein set forth to be performed on
behalf of the City shall be for the equal benefit, protection and security of
the holders of the Bonds and the interest coupons appertaining thereto, regard-
less of the time or times of their issue.
Section 16. Reqistration of Bonds. The Mayor of the City is hereby
authorized to have control of the Bonds and all necessary records and proceed-
ings pertaining to the Bonds pending their delivery and their investigation,
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examination, and approval by the Attorney ~eneral of the State of Texas and
their registration by the Comptroller of Publ ic Accounts of the State of II
Texas. Upon registration of the Bonds, the Comptroller of Public Accounts ! I
(or a deputy desig,nated: i.nwriting to act, for the Comptrpl1er):,shall manually W
sign the Comptroller1s-Reg'istrationCertHicate presCribed herein to be printed
and endorsed on each'Bonp; and thes,eal 'of ,the Comptroller 'shall be impressed,
or placed in facs'imi,l e,' on ,each",of the Bonds. '
, Section 17 ~ ' Supplemental Authorization~ The Mayor and other appro-
priate offi cers and ,.agents 'of'.the' Gity'are,hereby authorized and di rected to
do any and all things.' necessary or, convenief)t to ,carry out the provisions of this
ordinance. '
Section 18:. Captions for Convenience Only. The captions of the
sections of this Ordinance: have been inserted for conyenience and reference
only, and are not to be',considered a part ,hereof and shall not in any way modify
or restrict any of 'the 'terms or provisions hereof.
. Section' lQ~ ' Effective'Date. This Or:dimmce was read once, by the
Gi ty Commission ands,hall takeeffe,c,t 'imrne.clta,tely.
Section '20.' Open:Meetings Law. ,'It is' hereby officially found and
determined that a sufficient written notice of the date, hour, place and subject
of this meeting of the City Commission was posted at a place readi-ly accessible
and convenient to the general public in the City Hall for~the time required by
lawpr.eceding this meeting, 'allas required by the Open Meetings Law, Article
6252-17:, Vernon's Texas C;,'yi 1 Statutes, as amended; andthatthi s meeting has n
been open to, the p-ubli,c as r,equiredby,law,at'all.times during which this Ordi- I \
nance and the subject matter thereof has been discussed, considered and formally LJ
acted upon.' The City Commis.sion further ratifi es, approves and confi rms such
written notice and the contents and posting thereof.
PASSED, AUTHENTICATED, AND APPROVED this 8th day of April, 1976.
.. ~~ij/2#d~
' c~~~r OF .WEST UNIVERSITY PL CE,
, : TEXAS . ,
ATTEST:
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Ci t ,Secretary ",' ' ,', "
CITY: OFWESJUNIVERSITv' PLACE,
'TEXAS
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