Ord 48-90 7/23/1990 0I ,4
CERTIFICATE FOR ORDINANCE
THE STATE OF TEXAS
COUNTY OF WICHITA
CITY OF WICHITA FALLS
We, the undersigned officers of the City Council of said City, hereby
certify as follows:
1. The City Council of said City convened in SPECIAL MEETING ON
THE 23RD DAY OF JULY, 1990, at the regular designated meeting place, and
the roll was called of the duly constituted officers and members of said City
Council, to-wit:
Michael Lam, Mayor David Farabee
Donald Kirkham, Mayor Pro-Tern Paul Hughes
City Clerk, Wilma J. Thomas J. W. Martin
Angus Thompson Charles Thomas
and all of said persons were present, except the following absentees: None, thus
constituting a quorum. Whereupon, among other business the following was
transacted at said Meeting: a written
ORDINANCE AUTHORIZING THE ISSUANCE AND
SALE OF CITY OF WICHITA FALLS, TEXAS WATER
AND SEWER SUBORDINATE LIEN REVENUE
BONDS, SERIES 1990-A; CITY OF WICHITA FALLS,
TEXAS WATER AND SEWER SUBORDINATE LIEN
REVENUE BONDS, SERIES 1990-B; AND CITY OF
WICHITA FALLS, TEXAS WATER AND SEWER
SUBORDINATE LIEN REVENUE BONDS, SERIES
1990-C; THE EXECUTION OF A PAYING
AGENT/REGISTRAR AGREEMENT; AND
AUTHORIZING OTHER MATTERS RELATED
THERETO.
was duly introduced for the consideration of said City Council and read in full.
It was then duly moved and seconded that said Ordinance be passed; and, after
due discussion, said motion, carrying with it the passage of said Ordinance,
prevailed and carried by the following vote:
AYES: All City Council members present above voted
"Aye."
NOES; None.
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2. That a true, full, and correct copy of the aforesaid Ordinance passed
at the Meeting described in the above and foregoing paragraph is attached to
and follows this Certificate; that said Ordinance has been duly recorded in said
Board's minutes of said Meeting; that the above and foregoing paragraph is a
true, full, and correct excerpt from said Board's minutes of said Meeting
pertaining to the passage of said Ordinance; that the persons named in the
above and foregoing paragraph are the duly chosen, qualified, and acting offi-
cers and members of said City Council as indicated therein; that each of the
officers and members of said City Council was duly and sufficiently notified
officially and personally, in advance, of the time, place, and purpose of the
aforesaid Meeting, and that said Ordinance would be introduced and considered
for passage at said Meeting, and each of said officers and members consented,
in advance, to the holding of said Meeting for such purpose; and that said
Meeting was open to the public, and public notice of the time, place, and
purpose of said Meeting was given all as required by Vernon's Ann. Civ. St.
Article 6252-17.
3. That the ordinance has not been modified, amended or repealed and
is in full force and effect on and as of the date hereof.
SIGNED AND SEALED
A 74a��` / el_
City Clerk Mayor
(SEAL)
ORDINANCE NO. VI—fd
ORDINANCE AUTHORIZING THE ISSUANCE AND
SALE OF CITY OF WICHITA FALLS, TEXAS WATER
AND SEWER SUBORDINATE LIEN REVENUE
BONDS, SERIES 1990-A; CITY OF WICHITA FALLS,
TEXAS WATER AND SEWER SUBORDINATE LIEN
REVENUE BONDS, SERIES 1990-B; AND CITY OF
WICHITA FALLS, TEXAS WATER AND SEWER
SUBORDINATE LIEN REVENUE BONDS, SERIES
1990-C; THE EXECUTION OF A PAYING
AGENT/REGISTRAR AGREEMENT; AND
AUTHORIZING OTHER MATTERS RELATED
THERETO.
THE STATE OF TEXAS •
COUNTY OF WICHITA
CITY OF WICHITA FALLS .
WHEREAS, the City of Wichita Falls, Texas (the "City" or the "Issuer")
has outstanding the following utilities system revenue bonds (hereinafter defined
as the "1986 Priority Bonds"), to-wit:
City of Wichita Falls, Texas Water and Sewer Refunding Revenue Bonds,
Series 1986, dated July 1, 1986, currently outstanding in the aggregate
principal amount of $22,835,000; and
WHEREAS, the 1986 Priority Bonds are secured by a first lien on the
'Pledged Revenues' pursuant to the ordinance passed July 1, 1986 authorizing
their issuance (thy "Priority Bond Ordinance"); and
WHEREAS, the Priority Bond Ordinance authorizes the Issuer to issue
its subordinate lien revenue bonds for the purpose of paying the cost of "Capital
Improvements" to the City's Water and Sewer System; and
WHEREAS, the requirements for the issuance of the bonds herein
authorized as "Subordinate Lien Bonds" pursuant to the Priority Bond Ordinance
have been satisfied; and
WHEREAS, the bonds hereinafter authorized are to be issued and
delivered pursuant to Articles 1111 through 1118 V.A.T.C.S. for the purpose of
providing money for capital extensions, improvements, and additions to the City's
Water and Sewer System; and
WHEREAS, the City Council of the Issuer has heretofore on the 3rd day
of July, 1990 adopted a resolution authorizing and directing notice of its
intention to issue the revenue bonds herein authorized to be issued, pursuant to
Article 2368a, V.A.T.C.S. and Chapter 252 of the Local Government Code; and
WHEREAS, said notice was published as required by said Article 2368 in
the "Wichita Falls Record News", which is a newspaper of general circulation in
the City, in its issues of July 5, 1990 and July 12, 1990; and
WHEREAS, the City received no petition from the qualified electors of
tY P q
the City protesting the issuance of such revenue bonds; and
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
WICHITA FALLS, TEXAS:
Section 1. AUTHORIZATION OF BONDS. That three series of the
City's bonds are hereby authorized to be issued in the aggregate principal
amount of $26,210,000 for the purpose of providing funds for Capital
Improvements to the City's combined Water and Sewer System. One series of
bonds shall be issued in the aggregate principal amount of $24,180,000 and shall
be designated as the "City of Wichita Falls, Texas Water and Sewer Subordinate
Lien Revenue Bonds, Series 1990-A" (the "Series 1990-A Bonds"). One series of
bonds shall be issued in the aggregate principal amount of $1,490,000 and shall
be designated as the "City of Wichita Falls, Texas Water and Sewer Subordinate
Lien Revenue Bonds, Series 1990-B" (the "Series 1990-B Bonds"). One series of
bonds shall be issued in the aggregate principal amount of $540,000 and shall be
designated as the "City of Wichita Falls, Texas Water and Sewer Subordinate
Lien Revenue Bonds, Series 1990-C" (the "Series 1990-C Bonds"). That the
Bonds of each series shall be issued, shall be payable, shall and may be
redeemed prior to their scheduled maturities, shall have the characteristics, and
shall be signed and executed (and the Bonds shall be sealed), all as provided,
and in the manner indicated, in the FORM OF BONDS set forth in Section 6
of this Ordinance.
Section 2. DATE AND MATURITIES. That the Bonds of each series
shall be dated July 1, 1990, shall be in the denomination of $5,000, or any inte-
gral multiple thereof, shall be numbered consecutively from one upward, and
shall mature on August 1 in each of the years, and in the amounts, respectively,
unless redeemed prior to maturity as required or permitted in the Form of
Bonds set forth in Section 6 of this Ordinance, as set forth in the following
schedule:
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SERIES 1990-A BONDS
YEARS AMOUNTS YEARS AMOUNTS
1993 $ 300,000 2003 $ 515,000
1994 315,000 2004 545,000
1995 335,000 2005 575,000
1996 350,000 2006 610,000
1997 380,000 2007 640,000
1998 390,000 2008 3,120,000
1999 415,000 2009 3,300,000
2000 440,000 2010 3,465,000
2001 465,000 2011 3,665,000
2002 485,000 2012 3,870,000
SERIES 1990-B BONDS
YEARS AMOUNTS YEARS AMOUNTS
1993 $ 35,000 2003 $ 75,000
1994 35,000 2004 80,000
1995 40,000 2005 85,000
1996 45,000 2006 90,000
1997 45,000 2007 100,000
1998 50,000 2008 100,000
1999 55,000 2009 100,000
2000 60,000 2010 110,000
2001 65,000 2011 120,000
2002 70,000 2012 130,000
SERIES 1990-C BONDS
YEARS AMOUNTS YEARS AMOUNTS
1993 $ 15,000 2003 $ 25,000
1994 15,000 2004 25,000
1995 15,000 2005 30,000
1996 15,000 2006 30,000
1997 15,000 2007 30,000
1998 20,000 2008 35,000
1999 20,000 2009 40,000
2000 20,000 2010 45,000
2001 20,000 2011 50,000
2002 25,000 2012 50,000
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Section 3. RIGHT OF PRIOR REDEMPTION. (a) That the City
reserves the right to redeem the Bonds of each series in whole, or in part, on
August 1, 1999, or on any date thereafter, at a redemption price equal to the
principal amount of such Bonds called for redemption, plus accrued interest thereon
to the date fixed for redemption:
(b) At least 30 days prior to the date fixed for any such redemption a
written notice of such redemption shall be given to the registered owner of each
Bond or a portion thereof being called for redemption by depositing such notice
in the United States Mail, postage prepaid, addressed to each such registered owner
at his address shown on the Registration Books (hereinafter defined) of the Pay-
ing Agent/Registrar (hereinafter defined). By the date fixed for any such
redemption due provision shall be made by the City with the Paying
Agent/Registrar for the payment of the required redemption price for the Bonds
or the portions thereof which are to be so redeemed, plus accrued interest thereon
to the date fixed for redemption. If such written notice of redemption is given, and
if due provision for such payment is made, all as provided above, the Bonds, or the
portions thereof which are to be so redeemed, thereby automatically shall be
redeemed prior to their scheduled maturities, and shall not bear interest after the
date fixed for their redemption, and shall not be regarded as being outstanding
except for the right of the registered owner to receive the redemption price plus
accrued interest to the date fixed for redemption from the Paying Agent/Registrar
out of the funds provided for such payment. The Paying Agent/Registrar shall
record in the Registration Books all such redemptions of principal of the Bonds or
any portion thereof. If a portion of any Bond shall be redeemed, a substitute Bond
or Bonds having the same maturity date, bearing interest at the same rate, in any
denomination or denominations in any integral multiple of $5,000 at the written
request of the registered owner, and in an aggregate principal amount equal to the
unredeemed portion thereof, will be issued to the registered owner upon the
surrender thereof for cancellation, at the expense of the City, all as provided in this
Ordinance. The Bonds or portions to be redeemed within a maturity shall be
selected by lot by the Paying Agent/Registrar. The City shall give written notice
to the Paying Agent/Registrar of any such redemption of Bonds and of the
maturities to be redeemed at least 60 calendar days (or such shorter period as is
acceptable to the Paying Agent/Registrar) prior to such redemption.
Section 4. INTEREST. That the Series 1990-A Bonds shall bear interest
at the rate of 5.50% per annum, the Series 1990-B Bonds shall bear interest at the
rate of 7.72% per annum and the Series 1990-C Bonds shall bear interest at the
rate of 7.17% per annum. Said Bonds shall bear interest from the dates and be
registered owner of any such Bond in the manner provided and on
payable to the regi y p
the dates stated in the FORM OF BONDS set forth in this Ordinance.
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Section 5. CHARACTERISTICS OF THE BONDS. Registration, Transfer,
Conversion and Exchange: Authentication. (a) The City shall keep or cause to be
kept at the principal corporate trust office of NCNB Texas National Bank, in Fort
Worth, Texas (the "Paying Agent/Registrar") books or records for the registration
of the transfer, conversion and exchange of the Bonds (the "Registration Books"),
and the City hereby appoints the Paying Agent/Registrar as its registrar and transfer
agent to keep such books or records and make such registrations of transfers,
conversions and exchanges under such reasonable regulations as the City and Paying
Agent/Registrar may prescribe; and the Paying Agent/Registrar shall make such
registrations, transfers, conversions and exchanges as herein provided. The Paying
Agent/Registrar shall obtain and record in the Registration Books the address of
the registered owner of each Bond to which payments with respect to the Bonds
shall be mailed, as herein provided; but it shall be the duty of each registered
owner to notify the Paying Agent/Registrar in writing of the address to which
payments shall be mailed, and such interest payments shall not be mailed unless
such notice has been given. The City shall have the right to inspect the Regis-
tration Books during regular business hours of the Paying Agent/Registrar, but
otherwise the Paying Agent/Registrar shall keep the Registration Books confiden-
tial and, unless otherwise required by law, shall not permit their inspection by any
other entity. The City shall pay the Paying Agent/Registrar's standard or customary
fees and charges for making such registration, transfer, conversion, exchange and
delivery of a substitute Bond or Bonds. Registration of assignments, transfers,
conversions and exchanges of Bonds shall be made in the manner provided and
with the effect stated in the FORM OF BOND set forth in this Ordinance. Each
substitute Bond of each series shall bear a letter and/or number to distinguish it
from each other Bond of such series.
Except as provided in (c) below, an authorized representative of the Paying
Agent/ Registrar shall, before the delivery of any such Bond, date and manually
sign the Paying Agent/Registrar's Authentication Certificate, and no such Bond shall
be deemed to be issued or outstanding unless such Certificate is so executed. The
Paying Agent/Registrar promptly shall cancel all paid Bonds and Bonds surrendered
for conversion and exchange. No additional ordinances, orders, or resolutions need
be passed or adopted by the governing body of the City or any other body or
person so as to accomplish the foregoing conversion and exchange of any Bond or
portion thereof, and the Paying Agent/ Registrar shall provide for the printing,
execution, and delivery of the substitute Bonds in the manner prescribed herein,
and said Bonds shall be of type composition printed on paper with lithographed or
steel engraved borders of customary weight and strength. Pursuant to Vernon's
Ann. Tex. Civ. St. Art. 717k-6, and particularly Section 6 thereof, the duty of
conversion and exchange of Bonds as aforesaid is hereby imposed upon the Paying
Agent/Registrar, and, upon the execution of said Certificate, the converted and
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exchanged Bond shall be valid, incontestable, and enforceable in the same manner
and with the same effect as the Bonds which initially were issued and delivered
pursuant to this Ordinance, approved by the Attorney General, and registered by
the Comptroller of Public Accounts.
The Paying Agent/Registrar shall complete the Delivery Certificate on each
Bond initially delivered to the Texas Water Development Board, upon satisfaction
of the conditions described in Section 29 of this Ordinance.
(b) Payment of Bonds and Interest. The City hereby further appoints the
Paying Agent/Registrar to act as the paying agent for paying the principal of and
interest on the Bonds, all as provided in this Ordinance. The Paying Agent/
Registrar shall keep proper records of all payments made by the City and the
Paying Agent/Registrar with respect to the Bonds.
(c) In General. The Bonds of each series (i) shall be issued in fully
registered form, without interest coupons, with the principal of and interest on such
Bonds to be payable only to the registered owners thereof, (ii) may be redeemed
prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may
be converted and exchanged for other Bonds of the same series, (v) shall have the
characteristics, (vi) shall be signed, sealed, executed and authenticated, (vii) the
principal of and interest on the Bonds shall be payable, and (viii) shall be
administered and the Paying Agent/Registrar and the City shall have certain duties
and responsibilities with respect to the Bonds, all as provided, and in the manner
and to the effect as required or indicated, in the FORM OF BONDS set forth in
this Ordinance. The Bonds initially issued and delivered pursuant to this Ordinance
are not required to be, and shall not be, authenticated by the Paying Agent/Regis-
trar, but on each substitute Bond issued in conversion of and exchange for any
Bond or Bonds issued under this Ordinance the Paying Agent/Registrar shall
execute the PAYING AGENT/ REGISTRAR'S AUTHENTICATION CERTIF-
ICATE, in the form set forth in the FORM OF BONDS.
(d) Substitute Paying Agent/Registrar. The City covenants with the
registered owners of the Bonds that at all times while the Bonds are outstanding
the City will provide a competent and legally qualified bank, trust company, finan-
cial institution, or other agency to act as and perform the services of Paying
Agent/Registrar for the Bonds under this Ordinance, and that the Paying
Agent/Registrar will be one entity. The City reserves the right to, and may, at its
option, change the Paying Agent/Registrar upon not less than 120 days written
notice to the Paying Agent/ Registrar, to be effective not later than 60 days prior
to the next principal or interest payment date after such notice. In the event that
the entity at any time acting as Paying Agent/Registrar (or its successor by merger,
acquisition, or other method) should resign or otherwise cease to act as such, the
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City covenants that promptly it will appoint a competent and legally qualified bank,
trust company, financial institution, or other agency to act as Paying Agent/Registrar
under this Ordinance. Upon any change in the Paying Agent/Registrar, the
previous Paying Agent/Registrar promptly shall transfer and deliver the Registration
Books (or a copy thereof), along with all other pertinent books and records relat-
ing to the Bonds, to the new Paying Agent/Registrar designated and appointed by
the City. Upon any change in the Paying Agent/Registrar, the City promptly will
cause a written notice thereof to be sent by the new Paying Agent/Registrar to each
registered owner of the Bonds, by United States Mail, first-class postage prepaid,
which notice also shall give the address of the new Paying Agent/Registrar. By
accepting the position and performing as such, each Paying Agent/Registrar shall
be deemed to have agreed to the provisions of this Ordinance, and a certified
copy of this Ordinance shall be delivered to each Paying Agent/Registrar.
Section 6. FORMS OF SERIES 1990-A, SERIES 1990-B AND SERIES
1990-C BONDS, RESPECTIVELY. That the forms of all Bonds, including the
form of the Paying Agent/Registrar's Certificate, the form of Assignment, the form
of Delivery Certificate, and the form of the Comptroller's Registration Certificate
to be attached only to the Bonds initially issued and delivered pursuant to this
Ordinance , shall be, respectively, substantially as provided in this Section, with such
appropriate variations, omissions, or insertions as are permitted or required by this
Ordinance. Provisions relating to the Series 1990-A Bonds are designated with a
single asterisk (*), those relating to the Series 1990-B Bonds are designated with
a double asterisk (**) and those relating to the Series 1990-C Bonds are designated
with a triple asterisk (***).
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FORM OF BONDS
* FORM OF SERIES 1990-A BOND:
[NO. $
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF WICHITA
CITY OF WICHITA FALLS, TEXAS
WATER AND SEWER SUBORDINATE LIEN REVENUE BOND
SERIES 1990-A
MATURITY DATE INTEREST RATE DATE OF SERIES CUSIP NO.
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF
WICHITA FALLS, IN WICHITA COUNTY, TEXAS (the "Issuer"), hereby
promises to pay to , or
to the registered assignee hereof (either being hereinafter called the "registered
owner") the principal amount of
and to pay interest thereon from the date of delivery of this Bond to the initial
purchaser as shown below in the Delivery Certificate, on February 1, 1991 and
semiannually on each August 1 and February 1 thereafter to the maturity date
specified above, or the date of redemption prior to maturity, at the interest rate
per annum specified above; except that if this Bond is required to be authenti-
cated and the date of its authentication is later than the first Record Date, such
principal amount shall bear interest from the interest payment date next preced-
ing the date of authentication, unless such date of authentication is after any
Record Date but on or before the next following interest payment date, in which
case such principal amount shall bear interest from such next following interest
payment date; provided, however, that if on the date of authentication hereof the
interest on the Bond or Bonds, if any, for which this Bond is being exchanged or
converted from is due but has not been paid, then this Bond shall bear interest
from the date to which such interest has been paid in full or if no interest has been
paid from the date of delivery.]
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** FORM OF SERIES 1990-B BOND:
[NO. $
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF WICHITA
CITY OF WICHITA FALLS, TEXAS
WATER AND SEWER SUBORDINATE LIEN REVENUE BOND
SERIES 1990-B
MATURITY DATE INTEREST RATE DATE OF SERIES CUSIP NO.
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF
WICHITA FALLS, IN WICHITA COUNTY, TEXAS (the "Issuer"), hereby
promises to pay to , or
to the registered assignee hereof (either being hereinafter called the "registered
owner") the principal amount of
and to pay interest thereon from the date of delivery of this Bond to the initial
purchaser as shown below in the Delivery Certificate, on February 1, 1991 and •
semiannually on each August 1 and February 1 thereafter to the maturity date
specified above, or the date of redemption prior to maturity, at the interest rate
per annum specified above; except that if this Bond is required to be authenti-
cated and the date of its authentication is later than the first Record Date, such
principal amount shall bear interest from the interest payment date next preced-
ing the date of authentication, unless such date of authentication is after any
Record Date but on or before the next following interest payment date, in which
case such principal amount shall bear interest from such next following interest
payment date; provided, however, that if on the date of authentication hereof the
interest on the Bond or Bonds, if any, for which this Bond is being exchanged or
converted from is due but has not been paid, then this Bond shall bear interest
from the date to which such interest has been paid in full or if no interest has
been paid from the date of delivery.]
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*** FORM OF SERIES 1990-C BOND:
[NO. $
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF WICHITA
CITY OF WICHITA FALLS, TEXAS
WATER AND SEWER SUBORDINATE LIEN REVENUE BOND
SERIES 1990-C
MATURITY DATE INTEREST RATE DATE OF SERIES CUSIP NO.
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF
WICHITA FALLS, IN WICHITA COUNTY, TEXAS (the "Issuer"), hereby
promises to pay to , or
to the registered assignee hereof (either being hereinafter called the ("registered
owner") the principal amount of
and to pay interest thereon from the date of delivery of this Bond to the initial
purchaser as shown below in the Delivery Certificate, on February 1, 1991 and
semiannually on each August 1 and February 1 thereafter to the maturity date
specified above, or the date of redemption prior to maturity, at the interest rate
per annum specified above; except that if this Bond is required to be authenti-
cated and the date of its authentication is later than the first Record Date, such
principal amount shall bear interest from the interest payment date next preced-
ing the date of authentication, unless such date of authentication is after any
Record Date but on or before the next following interest payment date, in which
case such principal amount shall bear interest from such next following interest
payment date; provided, however, that if on the date of authentication hereof the
interest on the Bond or Bonds, if any, for which this Bond is being exchanged or
converted from is due but has not been paid, then this Bond shall bear interest
from the date to which such interest has been paid in full or if no interest has been
paid from the date of delivery.]
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THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful
money of the United States of America, without exchange or collection charges.
The principal of this Bond shall be paid to the registered owner hereof upon
presentation and surrender of this Bond at maturity or upon the date fixed for its
redemption prior to maturity, at the principal corporate trust office of the NCNB
Texas National Bank, in Fort Worth, Texas, which is the "Paying Agent/Registrar"
for this Bond. The payment of interest on this Bond shall be made by the Paying
Agent/Registrar to the registered owner hereof on each interest payment date by
check, dated as of such interest payment date, drawn by the Paying Agent/Regis-
trar on, and payable solely from, funds of the Issuer required by the ordinance
authorizing the issuance of this Bond (the "Bond Ordinance") to be on deposit with
the Paying Agent/Registrar for such purpose as hereinafter provided; and such
check or draft shall be sent by the Paying Agent/ Registrar by United States mail,
first-class postage prepaid, on each such interest payment date, to the registered
owner hereof, at its address as it appeared on the fifteenth day of the month next
preceding each such date (the "Record Date") on the Registration Books kept by
the Paying Agent/ Registrar, as hereinafter described. Any accrued interest due at
maturity or upon the redemption of this Bond prior to maturity as provided herein
shall be paid to the registered owner upon presentation and surrender of this Bond
for redemption and payment at the principal corporate trust office of the Paying
Agent/Registrar. The Issuer covenants with the registered owner of this Bond that
on or before each principal payment date, interest payment date, and accrued
interest payment date for this Bond it will make available to the Paying
Agent/Registrar, from the "Debt Service Fund" created by the Bond Ordinance, the
amounts required to provide for the payment, in immediately available funds, of all
principal of and interest on the Bonds, when due.
IF THE DATE for the payment of the principal of or interest on this Bond
shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions
in the City where the principal corporate trust office of the Paying Agent/Registrar
is located are authorized by law or executive order to close, or the United States
Postal Service is not open for business, then the date for such payment shall be the
next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on
which banking institutions are authorized to close, or the United States Postal
Service is not open for business; and payment on such date shall have the same
force and effect as if made on the original date payment was due.
*[THIS BOND is one of a series of bonds of like tenor and effect except
as to number, principal amount, interest rate, maturity, and right of prior
redemption, aggregating $24,180,000 (herein sometimes called the "Bonds"), issued
for the purpose of improving and extending the Issuer's combined Water and Sewer
System.]
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**[THIS BOND is one of a series of bonds of like tenor and effect except
as to number, principal amount, interest rate, maturity, and right of prior
redemption, aggregating $1,490,000 (herein sometimes called the "Bonds"), issued
for the purpose of improving and extending the Issuer's combined Water and Sewer
System].
***[THIS BOND is one of a series of bonds of like tenor and effect except
as to number, principal amount, interest rate, maturity, and right of prior
redemption, aggregating $540,000 (herein sometimes called the "Bonds"), issued
for the purpose of improving and extending the Issuer's combined Water and Sewer
System].
THE OUTSTANDING BONDS may be redeemed prior to their scheduled
maturities, at the option of the Issuer, in whole, or in part on August 1, 1999, or
on any date thereafter, at a redemption price equal to the principal amount of the
Bonds called for redemption, plus accrued interest thereon to the date fixed for
redemption. The years of maturity of the Bonds called for such redemption shall
be selected by the Issuer. The Bonds or portions thereof redeemed within a
maturity shall be selected by lot by the Paying Agent/Registrar (provided that a
portion of a Bond may be redeemed only in an integral multiple of $5,000).
AT LEAST 30 days prior to the date fixed for any such redemption a
written notice of such redemption shall be given to the registered owner of each
Bond or a portion thereof being called for redemption by depositing such notice
in the United States Mail, postage prepaid, addressed to each such registered
owner at his address shown on the Registration Books of the Paying
Agent/Registrar. By the date fixed for any such redemption due provision shall
be made by the Issuer with the Paying Agent/Registrar for the payment of the
required redemption price for this Bond or the portion hereof which is to be so
redeemed, plus accrued interest thereon to the date fixed for redemption. If such
written notice of redemption is given, and if due provision for such payment is
made, all as provided above, this Bond, or the portion hereof which is to be so
redeemed, thereby automatically shall be redeemed prior to its scheduled matur-
ity, and shall not bear or accrue interest after the date fixed for its redemption, and
shall not be regarded as being outstanding except for the right of the registered
owner to receive the redemption price plus accrued interest to the date fixed for
redemption from the Paying Agent/Registrar out of the funds provided for such
payment. The Paying Agent/Registrar shall record in the Registration Books all
such redemptions of the principal amount of this Bond or any portion hereof. If
a portion of any Bond shall be redeemed a substitute Bond or Bonds having the
same maturity date, bearing interest at the same rate, in any denomination or
denominations in any integral multiple of $5,000 at the written request of the
registered owner, and in an aggregate principal amount equal to the unredeemed
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portion thereof, will be issued to the registered owner upon the surrender thereof
for cancellation, at the expense of the Issuer, all as provided in the Bond
Ordinance.
ALL BONDS OF THIS SERIES are issuable solely as fully registered Bonds,
without interest coupons, in the denomination of any integral multiple of$5,000. As
provided in the Bond Ordinance, this Bond may, at the request of the registered
owner or the assignee or assignees hereof, be assigned, transferred, converted into
and exchanged for a like aggregate amount of fully registered Bonds, without
interest coupons, payable to the appropriate registered owner, assignee or assignees,
as the case may be, having any authorized denomination or denominations as
requested in writing by the appropriate registered owner, assignee or assignees, as
the case may be, upon surrender of this Bond to the Paying Agent/Registrar for
cancellation, all in accordance with the form and procedures set forth in the Bond
Ordinance. Among other requirements for such assignment and transfer, this Bond
must be presented and surrendered to the Paying Agent/Registrar, together with
proper instruments of assignment, in form and with guarantee of signatures satis-
factory to the Paying Agent/Registrar, evidencing assignment of this Bond or any
portion or portions hereof in any authorized denomination to the assignee or
assignees in whose name or names this Bond or any such portion or portions
hereof is or are to be registered. The form of Assignment printed or endorsed on
this Bond may be executed by the registered owner to evidence the assignment
hereof, but such method is not exclusive, and other instruments of assignment
satisfactory to the Paying Agent/Registrar may be used to evidence the assignment
of this Bond or any portion or portions hereof from time to time by the registered
owner. The one requesting such conversion and exchange shall pay the Paying
Agent/Registrar's reasonable standard or customary fees and charges for convert-
ing and exchanging any Bond or portion thereof. In any circumstance, any taxes
or governmental charges required to be paid with respect thereto shall be paid by
the one requesting such assignment, transfer, conversion or exchange, as a condi-
tion precedent to the exercise of such privilege. The foregoing notwithstanding,
in the case of the conversion and exchange of an assigned and transferred Bond
or Bonds or any portion or portions thereof, such fees and charges of the Paying
Agent/Registrar will be paid by the Issuer. The Paying Agent/Registrar shall not
be required to make any such transfer, conversion or exchange (i) during the period
commencing with the close of business on any Record Date and ending with the
opening of business on the next following principal or interest payment date, or (ii)
with respect to any Bond or any portion thereof called for redemption prior to
maturity, within 45 days prior to its redemption date; provided, however, such
limitation of transfer shall not be applicable to an exchange by the Registered
Owner of an unredeemed balance of a Bond called for redemption in part.
13
IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by
the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted
in the Bond Ordinance that it promptly will appoint a competent and legally
qualified substitute therefor, whose qualifications substantially are similar to the
previous Paying Agent/Registrar it is replacing, and promptly will cause written
notice thereof to be mailed to the registered owners of the Bonds.
BY BECOMING the registered owner of this Bond, the registered owner
thereby acknowledges all of the terms and provisions of the Bond Ordinance,
agrees to be bound by such terms and provisions, acknowledges that the Bond
Ordinance is duly recorded and available for inspection in the official minutes and
records of the Issuer, and agrees that the terms and provisions of this Bond and
the Bond Ordinance constitute a contract between each registered owner hereof
and the Issuer.
THE BONDS, together with the other bonds of the Series of which this
bond is one and the issuer's Water and Sewer Subordinate Lien Revenue Bonds
Series *[1990-B and 1990-C] **[1990-A and 1990-C] ***[1990-A and 1990-B], are
special obligations of the Issuer payable solely from and equally secured by a lien
on and pledge of the "Pledged Revenues" (as such term is defined in the Bond
Ordinance) of the Issuer's combined Water and Sewer System. Such lien and
pledge, however, being subordinate to the lien and pledge securing the Issuer's
"Priority Bonds," (as defined in the Bond Ordinance) now outstanding or hereafter
issued.
*[THE ISSUER has reserved the right, subject to the restrictions stated,
and adopted by reference, in the Bond Ordinance authorizing the Bonds, to issue
additional Priority Bonds which may be made payable from, and secured by a first
lien on and pledge of, the aforesaid Pledged Revenues and funds and to issue
additional bonds on a parity with the bonds of this Series and with the issuer's
Water and Sewer Subordinate Lien Revenue Bonds, Series 1990-B and 1990-C
being issued concurrently herewith. For a more complete description and identi-
fication of the revenues and funds pledged to the payment of the Bonds, and other
obligations of the Issuer secured by and payable from the same source or sources
as the Bonds, reference is hereby made to the Bond Ordinance.]
**[THE ISSUER has reserved the right, subject to the restrictions stated,
and adopted by reference, in the Bond Ordinance authorizing the Bonds, to issue
additional Priority Bonds which may be made payable from, and secured by a first
lien on and pledge of, the aforesaid Pledged Revenues and funds and to issue
additional bonds on a parity with the bonds of this Series and with the issuer's
Water and Sewer Subordinate Lien Revenue Bonds, Series 1990-A and 1990-C
being issued concurrently herewith. For a more complete description and identi-
14
fication of the revenues and funds pledged to the payment of the Bonds, and other
obligations of the Issuer secured by and payable from the same source or sources
as the Bonds, reference is hereby made to the Bond Ordinance.]
***[THE ISSUER has reserved the right, subject to the restrictions stated,
and adopted by reference, in the Bond Ordinance authorizing the Bonds, to issue
additional Priority Bonds which may be made payable from, and secured by a first
lien on and pledge of, the aforesaid Pledged Revenues and funds and to issue
additional bonds on a parity with the bonds of this Series and with the issuer's
Water and Sewer Subordinate Lien Revenue Bonds, Series 1990-A and 1990-B
being issued concurrently herewith. For a more complete description and identi-
fication of the revenues and funds pledged to the payment of the Bonds, and other
obligations of the Issuer secured by and payable from the same source or sources
as the Bonds, reference is hereby made to the Bond Ordinance.]
THE REGISTERED OWNER HEREOF shall never have the right to
demand payment of this obligation out of any funds raised or to be raised by
taxation.
IT IS HEREBY certified and covenanted that this Bond has been duly and
validly authorized, issued and delivered; and that all acts, conditions and things
required or proper to be performed, exist and be done precedent to or in the
authorization, issuance and delivery of this Bond have been performed, existed and
been done in accordance with law.
IN WITNESS WHEREOF, this Bond has been signed with the imprinted
or lithographed facsimile signature of the Mayor of said Issuer, attested by the
imprinted or lithographed facsimile signature of the City Clerk, and the official
seal of said Issuer has been duly affixed to, printed, lithographed or impressed on
this Bond.
CITY 1�• HITA F 1 A6 •
.Atirr
Mayor
ATTEST:
i
A .101.ism_._I
City Clerk
(SEAL)
15
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION
CERTIFICATE
(To be executed if this Bond is not accompanied by an
•
executed Registration Certificate of the Comptroller
of Public Accounts of the State of Texas)
It is hereby certified that this Bond has been issued under the provisions of
the Bond Ordinance described on the face of this Bond; and that this Bond has
been issued in exchange for or replacement of a bond, bonds, or a portion of a
bond or bonds of an issue which originally was approved by the Attorney General
of the State of Texas and registered by the Comptroller of Public Accounts of the
State of Texas.
Date of Authentication NCNB Texas National Bank,
in Fort Worth, Texas
Paying Agent/Registrar
By
Authorized Signatory
FORM OF DELIVERY CERTIFICATE
DELIVERY CERTIFICATE
THIS BOND was delivered to the initial purchaser hereof on
FORM OF ASSIGNMENT
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto
Please insert Social Security or
Taxpayer Identification Number of Transferee
/ /
16
(Please print or typewrite name and address, including zip code of
Transferee)
the within Bond and all rights thereunder, and hereby
irrevocably constitutes and appoints
attorney to register the transfer of the within Bond on the books kept
for registration thereof, with full power of substitution in the premises.
Dated:
Signature Guaranteed:
NOTICE: Signature(s) must NOTICE: The signature above
be guaranteed by a member must correspond with the name
firm of the New York Stock of the Registered Owner as it
Exchange or a commercial appears upon the front of this
bank or trust company. Bond in every particular, with-
out alteration or enlargement
or any change whatsoever.
FORM OF COMPTROLLER'S REGISTRATION CERTIFICATE
OFFICE OF COMPTROLLER:
REGISTER NO.
STATE OF TEXAS:
I hereby certify that 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
Comptroller of Public Accounts of
the State of Texas
(SEAL)
17
J ,
Section 7. DEFINITIONS. That, as used in this Ordinance, the following
terms shall have the meanings set forth below, unless the text hereof specifically
indicates otherwise:
(a) The term "Accountant" shall mean a nationally recognized independent
certified public accountant, or an independent firm of certified public acccountants.
(b) The term "Additional Bonds" shall mean the additional revenue bonds
on a parity with the Bonds which the City reserves the right to issue in the future,
as provided in this Ordinance.
(c) The term "Average Annual Principal and Interest Requirements" means
that amount equal to the average annual principal and interest requirements
(including amortization installments) of all Priority Bonds and Subordinate Lien
Bonds outstanding. With respect to Priority Bonds or Subordinate Lien Bonds that
bear interest at a rate which is not established at the time of issuance at a single
numerical rate for each maturity of such series, Average Annual Principal and
Interest Requirements shall be calculated by (i) assuming that the interest rate for
every 12-month period on such bonds is equal to the rate of interest reported in
the most recently published edition of The Bond Buyer (or its successor) at the
time of calculation as the Revenue Bond Index or, if such Revenue Bond Index is
no longer being maintained by The Bond Buyer (or its successor) at the time of
calculation, such interest rate shall be assumed to be 80% of the rate of interest
then being paid on United States Treasury Obligations of like maturity, and (ii) that
the principal of such bonds is amortized such that annual debt service is substan-
tially level over the remaining stated life of the bonds.
(d) The term "Bonds" shall mean "City of Wichita Falls, Texas Water and
Sewer Subordinate Lien Revenue Bonds, Series 1990-A, Series 1990-B, and Series
1990-C."
(e) The term "Capital Additions" shall mean a reservoir or an interest
therein, a water treatment plant or an interest therein and a wastewater treatment
plant or an interest therein and associated transmission facilities with respect to
each and any combination thereof, which shall become a part of the System.
(f) The term "Capital Improvements" shall mean any capital extensions,
improvements and additions to the System other than Capital Additions.
(g) The term "City" or "Issuer" shall mean the City of Wichita Falls, in
Wichita County, Texas.
18
r
• •
It
(h) The term "Credit Obligation" shall mean, to the extent permitted by
law, any obligation of the City under a contract, lease, installment sales agreement,
or other instrument, with another entity to make payments out of revenues of the
System for power, energy, water or other property, services or commodities for the
benefit of the System, on a basis that such must be paid for whether or not the
same are made available, furnished or received and whether or not the entity
selling such services or commodities is amortizing its capital costs with such
payments.
(i) The term "Engineer of Record" shall mean the independent engineer
or firm at the time employed by the City to perform and carry out the duties
imposed on such engineer or firm by this Ordinance and having a favorable
reputation nationally for skill and experience in the engineering of water and sewer
systems of comparable size and character as those forming parts of the System.
(j) The term "Gross Revenues" shall mean all revenues, income, and
receipts of every nature derived or received by the City from the operation and
ownership of the System (other than grants, contributions in aid of construction,
and meter deposits and amounts received pursuant to the Water Supply Contract
between the City and West Texas Utilities dated January 1, 1977), including the
interest income from the investment or deposit of money in any Fund created by
the Priority Bond Ordinance, or maintained by the City in connection with the
System.
(k) The term "Net Revenues of the City's Combined Water and Sewer
System", and "Net Revenues" shall mean all Gross Revenues less Operating
Expenses.
(1) The term 1986 Priority Bonds shall have the meaning given in the
recitals to this Ordinance.
(m) The term "Operating Expenses" shall mean the expenses of operation
and maintenance of the System, 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, reasonably and fairly
exercised by the passage of appropriate ordinances, are necessary to render
adequate service, or such as might be necessary to meet some physical accident
or condition which would otherwise impair the Priority Bonds or Subordinate Lien
Bonds. Operating Expenses shall include the purchase of electric power, water and
sewer services as received from other entities and the expenses related thereto, and,
to the extent permitted by law, Operating Expenses may include payments made
on or in respect of Credit Obligations. Depreciation, and payments from the
19
System Fund to other funds established in this Ordinance, shall never be considered
as expenses of operation and maintenance.
(n) The term "Paying Agent/Registrar" shall mean the financial institution
specified in Section 5(a) hereof, or its herein permitted successors and assigns;
(o) The term "Pledged Revenues" shall mean
(1) the Net Revenues, plus
(2) any additional revenues, income, receipts, or other
resources, including, without limitation, any grants, donations, or
income received or to be received from the United States
Government, or any other public or private source, whether pursuant
to an agreement or otherwise, which hereafter are pledged to the
payment of the Bonds, and Additional Bonds.
(p) The term "Priority Bonds" shall mean 1986 Priority Bonds and any
Additional Priority Bonds, as defined in the Priority Bond Ordinance.
(q) The term Priority Bond Ordinance shall have the meaning given in the
recitals to this Ordinance.
(r) The term "Prudent Utility Practice" shall mean any of the practices,
methods and acts, in the exercise of reasonable judgment, in the light of the facts,
including but not limited to the practices, methods and acts engaged in or approved
by a significant portion of the public utility industry prior thereto, known at the
time the decision was made, would have been expected to accomplish the desired
result at the lowest reasonable cost consistent with reliability, safety and expedition.
It is recognized that Prudent Utility Practice is not intended to be limited to the
optimum practice, method or act at the exclusion of all others, but rather is a
spectrum of possible practices, methods or acts which could have been expected to
accomplish the desired result at the lowest reasonable cost consistent with reliability,
safety and expedition. In the case of any facility included in the System which is
owned in common with one or more other entities, the term "Prudent Utility
Practice", as applied to such facility, shall have the meaning set forth in the
agreement governing the operation of such facility.
(s) The term "Subordinate Lien Bonds" shall mean the Bonds and any
Additional Bonds.
(t) The term "Subordinated Obligations" shall mean any bonds, notes, or
other obligations issued pursuant to law payable in whole or in part from the
20
Pledged Revenues and subordinate to the Priority Bonds and the Bonds and any
Additional Bonds.
(u) The term "System" shall mean and include the City's existing combined
waterworks system and sewer system, together with all future extensions, improve-
ments, enlargements, and additions thereto, and all replacements thereof; provided
that, notwithstanding the foregoing, and to the extent now or hereafter authorized
or permitted by law, the term System shall not include any water or sewer facilities
which are declared by the City not to be a part of the System and which are
hereafter acquired or constructed by the City with the proceeds from the issuance
of "Special Facilities Bonds", which are hereby defined as being special revenue
obligations of the City which are not secured by or payable from the Pledged Reve-
nues, but which are secured by and payable solely from special contract revenues
or payments received from the System, any other legal entity, or any combination
thereof, in connection with such facilities; and such revenues or payments shall not
be considered as or constitute Gross Revenues of the System, unless and to the
extent otherwise provided in the ordinance or ordinances authorizing the issuance
of such "Special Facilities Bonds".
(v) The term "Value of Investment Securities" and words of like import
shall mean the amortized value thereof, provided, however, that all United States
of America, United States Treasury Obligations--State and Local Government Series
shall be valued at par and those obligations which are redeemable at the option of
the holder shall be valued at the price at which such obligations are then
redeemable. The computations made under this paragraph shall include accrued
interest on the investment securities paid as a part of the purchase price thereof
and not collected. For the purposes of this definition "amortized value", when used
with respect to a security purchased at par means the purchase price of such
security and when used with respect to a security purchased at a premium above
or discount below par, means as of any subsequent date of valuation, the value
obtained by dividing the total premium or discount by the number of interest
payment dates remaining to maturity on any such security after such purchase and
by multiplying the amount as calculated by the number of interest payment dates
having passed since the date of purchase and (i) in the case of a security purchased
at a premium, by deducting the product thus obtained from the purchase price, and
(ii) in the case of a security purchased at a discount, by adding the product thus
obtained to the purchase price.
(w) The term "Year" shall mean the regular fiscal year used by the City in
connection with the operation of the System, which may be any twelve consecutive
months period established by the City.
21
Section 8. PLEDGE. Subject only to the lien and pledge securing the
Priority Bonds, the Bonds and any Additional Bonds are and shall be secured by
and payable from a lien on and pledge of the Pledged Revenues including such
revenues within the System Fund and the funds created in the Priority Bond
Ordinance; and the Pledged Revenues are further pledged to the establishment and
maintenance of the Debt Service Fund and the Reserve Fund as hereinafter pro-
vided. The Bonds and any Additional Bonds are and will be secured by and
payable only from the Pledged Revenues, and are not secured by or payable from
a mortgage or deed of trust on any properties, whether real, personal, or mixed,
constituting the System.
Section 9. SYSTEM FUND. All Gross Revenues are to be credited to
the System Fund immediately upon receipt, except as otherwise provided herein.
All current Operating Expenses shall be paid from such Gross Revenues credited
to the System Fund as a first charge against same. Before making any deposits
hereinafter required to be made from the System Fund, the City shall retain in the
System Fund at all times an amount at least equal to one-sixth of the amount
budgeted for the then current fiscal year for the current Operating Expenses.
Section 10. DEBT SERVICE FUND. (a) That for the sole purpose of
paying the principal amount of, premium, if any, and interest on all Priority Bonds
and Subordinate Lien Bonds, including the Bonds, as the same come due, there
was created on the books of the City a separate fund to be entitled the "City of
Wichita Falls, Texas Water and Sewer Revenue Bonds Debt Service Fund" (here-
inafter called the "Debt Service Fund"). Monies in said Fund shall be deposited
and maintained in an official depository bank of the City.
(b) That within the Debt Service Fund there was established the Capitalized
Interest Account. The proceeds of Priority Bonds and Subordinate Lien Bonds
representing Capitalized Interest may be deposited into the Capitalized Interest
Account. On or before the day next preceding any interest payment date of bonds
for which any interest has been capitalized, the City shall use the monies in the
Capitalized Interest Account to pay such interest to the extent of the amounts
therein representing such capitalized interest.
Section 11. RESERVE FUND. That there was created on the books of
the City a separate fund to be entitled the "City of Wichita Falls, Texas Water
and Sewer Revenue Bonds Reserve Fund" (hereinafter called the "Reserve Fund").
Monies in said Fund shall be used solely for the purpose of retiring the last of any
Priority Bonds or Subordinate Lien Bonds, including the Bonds, as they become due
or paying principal of and interest on any Priority Bonds or Subordinate Lien
Bonds, including the Bonds, when and to the extent the amounts in the Debt
Service Fund are insufficient for such purpose. The Reserve Fund shall be
22
maintained in an amount equal to the Average Annual Principal and Interest
Requirements of the outstanding Priority Bonds and Subordinate Lien Bonds,
including the Bonds (the "Required Amount"). The monies in the Reserve Fund
shall be increased to the newly established Required Amount in accordance with
the provisions of Section 20(b) of the Priority Bond Ordinance. The City may, at
its option, withdraw and transfer to the System Fund, all surplus in the Reserve
Fund over the Required Amount. Monies in said Fund shall be deposited and
maintained in an official depository bank of the City.
Section 12. SUBORDINATE OBLIGATIONS FUND. That there was
created on the books of the City a separate fund to be entitled the "City of Wichita
Falls, Texas Water and Sewer Revenue Bonds Subordinated Obligations Fund"
(herein defined as the "Subordinated Obligations Fund"). Monies in said Fund shall
be maintained in an official depository bank of the City. Monies in the
Subordinated Obligations Fund shall be withdrawn to pay the principal of and
interest on Subordinated Obligations and shall be paid over to the Paying
Agent/Registrar to make the payments required in clauses (a) and (b) of Section
16 in the event that monies are not available in the System Fund for that purpose.
Section 13. INVESTMENTS. That money in any Fund established pursuant
to this Ordinance may, at the option of the City, be (A) placed in time deposits or
certificates of deposit which (to the extent not insured by the Federal Deposit
Insurance Corporation) are secured by obligations of the type described in B
rP )
Y g tYP ( )
hereinbelow, or (B) invested, including investments held in book-entry form, in (i)
direct obligations of the United States of America, (ii) obligations guaranteed or
insured by the United States of America, which, in the opinion of the Attorney
General of the United States, are backed by its full faith and credit or represent
its general obligations, or, (iii) to the extent permitted by law, evidences of
indebtedness and repurchase agreements issued, insured or guaranteed by such
governmental agencies as the Federal Land Banks, Federal Intermediate Credit
Banks, Banks for Cooperatives, Federal Home Loan Banks, Government National
Mortgage Association, United States Postal Service, Farmers Home Administration,
Federal Home Loan Mortgage Association; provided that all money required to be
expended from any Fund will be available at the proper time or times. Money in
the Reserve Fund shall not be invested in securities maturing later than the final
maturity of the Priority Bonds and Subordinate Lien Bonds. If monies in a Fund
herein established are permitted to be invested the value of any such Fund shall
be established by adding the monies therein to the Value of Investment Securities.
The value of each such Fund shall be established annually during the last month
of each Year and in addition thereto, with respect to the Reserve Fund, value shall
be established within thirty days prior to the issuance of Priority Bonds or
Additional Bonds and at the time or times withdrawals are made therefrom. Such
23
investments shall be sold promptly when necessary to prevent any default in
connection with the Priority Bonds or Subordinate Lien Bonds.
Section 14. FUNDS SECURED. That monies in the System Fund and all
Funds created by the Priority Bond Ordinance or this Ordinance, to the extent not
invested, shall be secured in the manner prescribed by law for securing funds of the
City.
Section 15. APPLICATION OF BOND PROCEEDS. Concurrently with
the delivery of the Bonds, the proceeds thereof shall be applied in the various
amounts and for the purposes described in a certificate of the City, to be delivered
by the City upon delivery of the Bonds.
Section 16. FLOW OF FUNDS. That all monies in the System Fund not
required for paying Operating Expenses during each month or otherwise required
to be maintained therein shall be applied by the City, on or before the 25th day
of the following month, commencing during the months and in the order of priority
with respect to the Funds and Accounts that such applications are hereinafter set
forth in this Section.
(a) Debt Service Fund - To the credit of the Debt Service Fund without
priority among the deposits except that the deposits set forth in (1), (2) and (3)
shall have priority over the other deposits in this paragraph (a), to-wit:
(1) such amounts, deposited in approximately equal monthly
installments, commencing during the month in which the Priority Bonds are
delivered, or the month thereafter if delivery is made after the 25th day
thereof, as will be sufficient, together with other amounts, if any, in the Debt
Service Fund available for such purpose, to pay the interest scheduled to
come due on Priority Bonds on the next succeeding interest payment date;
(2) such amounts, deposited in approximately equal monthly
installments, commencing during the month which shall be the later to occur
of, (i) the twelfth month before the first maturity date of Priority Bonds, or
(ii) the month in which Priority Bonds are delivered, or the month thereafter
if delivery is made after the 25th day thereof, as will be sufficient, together
with other amounts, if any, in the Debt Service Fund available for such
purpose, to pay the principal scheduled to mature on Priority Bonds on the
next succeeding principal payment date;
(3) such amounts, deposited in approximately equal monthly
intallments, commencing during the month which the Subordinate Lien
Bonds are delivered, or the month thereafter if delivery is made after the
24
•
25th day thereof, as will be sufficient, together with other amounts, if any,
in the Debt Service Fund available for such purpose, to pay the interest
scheduled to come due on the Subordinate Lien Bonds on the next
succeeding interest payment date;
(4) such amounts, deposited in approximately equal monthly
installments, commencing during the month which shall be the later to occur
of, (i) the twelfth month before the first maturity date of the Subordinate
Lien Bonds, or (ii) the month during which the Subordinate Lien Bonds are
delivered, or the month thereafter if delivery is made after the 25th day
thereof, as will be sufficient, together with other amounts, if any, in the Debt
Service Fund available for such purpose, to pay the principal scheduled to
mature on the Subordinate Lien Bonds and any Additional Bonds on the
next succeeding principal payment date; and
(b) Reserve Fund. When and so long as the sum of money and the Value
of Investment Securities in the Reserve Fund are not less than the Required
Amount, no deposits need be made to the credit of the Reserve Fund. When and
if the Reserve Fund at any time contains less than the Required Amount due to
any cause or condition other than the issuance of Priority Bonds or Subordinate
Lien Bonds, then, subject and subordinate to making the required deposits to the
credit of the Debt Service Fund, commencing with the month during which such
deficiency occurs, such deficiency shall be made up from the next available Pledged
Revenues, or from any other sources available for such purpose. If the Reserve
Fund contains less than the Required Amount due to the issuance of Priority Bonds
or Subordinate Lien Bonds deposits shall be made to the Reserve Fund
commencing during the month and in the amounts required by Section 20 of the
Priority Bond Ordinance.
(c) Subordinate Obligations Fund. Commencing during the month
Subordinated Obligations are delivered, or the month thereafter if delivery is made
after the 25th day thereof, the City shall deposit to the credit of the Subordinated
Obligations Fund the amount in cash accruing in such calendar month for payment
of the debt service requirements on any Subordinated Obligations. Such payments
shall be subordinate and junior in right of payment to the payment of principal of
and premium, if any, and interest on the Priority Bonds or Subordinate Lien Bonds.
(d) Surplus. The balance of any monies remaining in the System Fund
following such transfers shall be used by the City for any lawful purpose.
Section 17. DEFICIENCIES. That if on any occasion there shall not be
sufficient Pledged Revenues to make the deposits and other applications of monies
required by Section 16 with respect to the various Funds as provided therein, any
25
such deficiencies shall be made up (in the order that each such Fund is provided
for in Section 16) as soon as possible from the next available Pledged Revenues,
or from any other sources available for such purpose.
Section 18. PAYMENT OF BONDS AND ADDITIONAL BONDS. That
on or before February 1, 1991, and semiannually on or before each August 1 and
February 1 thereafter while any of the Bonds or Additional Priority Bonds are
outstanding and unpaid, the City shall make available to the Paying Agent/Registrar
therefor, out of the Debt Service Fund (and the other funds, if necessary, in the
order of priority set forth herein) monies sufficient to pay such interest on and such
principal amount of the Bonds and Additional Bonds as shall become due and
mature on such dates, respectively, at maturity or by redemption prior to maturity.
The Paying Agent/Registrar shall cancel all paid Bonds and Additional Bonds and
furnish the City with an appropriate certificate of cancellation or destruction.
Section 19. FINAL DEPOSITS; GOVERNMENT OBLIGATIONS. (a)
That any Bond shall be deemed to be paid, retired, and no longer outstanding
within the meaning of this Ordinance when payment of the principal amount of,
redemption premium, if any, on such Bond, plus interest thereon to the due date
thereof (whether such due date be by reason of maturity, upon redemption, or
otherwise) either (i) shall have been made in accordance with the terms thereof or
(ii) shall have been provided for by irrevocably depositing with, or making available
to, a paying agent (or escrow agent) therefor, in trust and irrevocably set aside
exclusively for such payment, (1) money sufficient to make such payment or (2)
Government Obligations, as hereinafter defined in this Section, certified by an inde-
pendent public accounting firm of national reputation, to mature as to principal and
interest in such amounts and at such times as will insure the availability, without
reinvestment, of sufficient money to make such payment, and all necessary and
proper fees, compensation, and expenses of such paying agent pertaining to the
Bonds with respect to which such deposit is made shall have been paid or the
payment thereof provided for (and irrevocable instructions shall have been given
by the City to such paying agent of such bonds to give notice of such redemption
in the manner required by this ordinance) to the satisfaction of such paying agent.
Such paying agent shall give notice to each registered owner of any Bond that such
deposit as described above has been made, in the same manner as described in
Section 3. In addition, in connection with a defeasance, such paying agent shall
give notice of redemption, if necessary, to the registered owners of any Bonds in
the manner described in such Bonds and as directed in the redemption instruc-
tions delivered by the City to such paying agent. At such time as a Bond shall be
deemed to be paid hereunder, as aforesaid, it shall no longer be secured by or
entitled to the benefit of this Ordinance or a lien on and pledge of the Pledged
Revenues, and shall be entitled to payment solely from such money or Government
Obligations.
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(b) That any moneys so deposited with a paying agent (or escrow agent)
may, at the direction of the City, also be invested in Government Obligations,
maturing in the amounts and times as hereinbefore set forth, and all income from
all Government Obligations in the hands of the paying agent pursuant to this
Section which is not required for the payment of the Bonds, the redemption
premium, if any, and interest thereon, with respect to which such money has been
so deposited, shall be remitted to the City for deposit into the System Fund.
(c) That the City covenants that no deposit will be made or accepted under
clause (a)(ii) of this Section and no use made of any such deposit which would
cause the Bonds or any Additional Bonds to be treated as arbitrage bonds within
the meaning of Section 148 of the Internal Revenue Code of 1986, as amended.
(d) That for the purpose of this Section, the term "Government Obligations"
shall mean noncallable direct obligations of or obligations guaranteed by the United
States of America, including obligations the principal of and interest on which are
unconditionally guaranteed by the United States of America.
(e) Except as provided in clause (b) of this Section, all money or
Government Obligations set aside and held in trust pursuant to the provisions of
this Section for the payment of Bonds, the redemption premium, if any, and
interest thereon, shall be applied solely to and used solely for the payment of such
Bonds, the redemption premium, if any, and interest thereon.
Section 20. ISSUANCE OF PRIORITY AND SUBORDINATE LIEN
BONDS. (a) That subject to the provisions hereinafter appearing as conditions
precedent which must first be satisfied, the City reserves the right to issue, from
•
time to time as needed, Priority Bonds and Additional Bonds, either or both, for
any lawful purpose relating to the System. Such Priority Bonds and Additional
Bonds may be issued in such form and manner as now or hereafter authorized by
the laws of the State of Texas for the issuance of evidences of indebtedness or
other instruments, and should new methods or financing techniques be developed
that differ from those now available and in normal use, the City reserves the right
to employ the same in its financing arrangements provided only that the same
conditions precedent herein required for the authorization and issuance of Priority
Bonds and Additional Bonds are satisfied.
(b) That the Debt Service Fund and the Reserve Fund established by this
Ordinance shall secure and be used to pay all Priority Bonds and Subordinate Lien
Bonds, including the Bonds. Upon the issuance and delivery of Priority Bonds or
Additional Bonds, the additional amount required to be deposited in the Reserve
Fund shall be so accumulated by the deposit in the Reserve Fund of all or any part
27
•
•
of said required additional amount in cash immediately after the delivery of such
Priority Bonds or Additional Bonds, or, at the option of the City, by the deposit of
said required additional amount (or any balance of said required additional amount
not deposited in cash as permitted above) in approximately equal monthly install-
ments, made on or before the 25th day of each month following the delivery of
such Priority Bonds or Additional Bonds, of not less than 1/60 of said required
additional amount (or 1/60 of the balance of said required additional amount not
deposited in cash as permitted above).
(c) That all calculations of Average Annual Principal and Interest
Requirements made pursuant to this Section shall be made as of and from the
date of the Priority Bonds or Additional Bonds then proposed to be issued.
(d) That the principal of all Priority Bonds or Additional Bonds (except
such obligations scheduled to mature within twelve months from the date of
issuance thereof) must be scheduled to be paid or mature on August 1 of the
years in which such principal is scheduled to be paid or mature; and all interest
thereon must be payable on February 1 and August 1.
Section 21. FURTHER REQUIREMENTS FOR ADDITIONAL BONDS.
(a) Conditions Precedent for Issuance of Additonal Bonds - General. That as a
condition precedent to the issuance of any Additional Bonds, the City Manager (or
other officer of the City then having the responsibility for the financial affairs of the
City) shall have executed a certificate stating (i) that the City is not then in default
as to any covenant, obligation, or agreement contained in any ordinance or other
proceeding relating to any obligations of the City payable from and secured by a
lien on and pledge of the Pledged Revenues, and (ii) all payments into all funds
or accounts created and established for the payment and security of all outstanding
obligations payable from and secured by a lien on and pledge of the Pledged
Revenues have been made in full and that the amounts on deposit in such funds
or accounts are the amounts then required to be deposited therein. Such certif-
icate shall be dated as of the date of delivery of such Subordinate Lien Bonds.
(b) Conditions Precedent for Issuance of Additional Bonds - Capital
Improvements and for any other lawful purpose except for Capital Additions or
for refunding. Except as otherwise provided in clause (c) of this Section, the City
covenants and agrees that Additional Bonds will not be issued for the purpose of
financing Capital Improvements, or for any other lawful purpose (except for Capital
Additions or for refunding, which are to be issued in accordance with the provisions
of clauses (d), (e) or (f) of this Section) unless and until the conditions precedent
in clause (a) above have been satisfied and, in addition thereto, the City has
secured a certificate or opinion of the City's Accountant to the effect that,
according to the books and records of the City, the Net Earnings for the preceding
28
Year or for 12 consecutive months out of the 15 months immediately preceding the
month the ordinance authorizing the Additional Bonds is adopted are at least equal
to the sum of (1) 1.10 times the Average Annual Principal and Interest
Requirements for the Subordinate Lien Bonds outstanding that are payable from
and secured by a lien on and pledge of the Pledged Revenues of the System,
including Subordinate Lien Bonds then proposed and (2) 1.25 times the Average
Annual Principal and Interest Requirements for all outstanding Priority Bonds. In
making a determination of the Net Earnings, the Accountant may take into
consideration a change in the rates and charges for services and facilities afforded
by the System that became effective at least sixty (60) days prior to the last day of
the period for which Net Earnings are determined and, for purposes of satisfying
the above Net Earnings test, make a pro forma determination of the Net Earnings
of the System for the period of time covered by his certification or opinion based
on such change in rates and charges being in effect for the entire period covered
by the Accountant's certificate or opinion.
As used in this Section, the term "Net Earnings" shall mean the Gross
Revenues of the System after deducting the Operating Expenses of the System,
but not expenditures which, under standard accounting practice, should be charged
to capital expenditures.
(c) The City covenants and agrees that Additional Bonds may not be issued
for the purpose of financing Capital Improvements when other outstanding Priority
Bonds or Subordinate Lien Bonds have been issued for Capital Additions and
capitalized interest for such other Priority Bonds or Subordinate Lien Bonds has
been provided for at least the twelve months subsequent to the date of issuance of
the new Subordinate Lien Bonds being issued, unless the conditions precedent in
clause (a) above have been satisfied and, in addition thereto, the City has either
(1) complied with the conditions of clause (b) of this Section, or (2) has satisfied
the conditions precedent in clauses (d)(i) and (d)(ii) of this Section (but, for
purposes of such clauses, the term Capital Improvements shall be substituted for
the term Capital Additions where the term Capital Additions appears therein to the
extent necessary to give recognition to the fact that Capital Improvements, rather
than Capital Additions, are then to be financed) and has secured a certificate or
opinion of the Accountant to the effect that, according to the books and records
of the City, the Net Earnings for the preceding Year or for 12 consecutive months
out of the 15 months immediately preceding the month the ordinance authorizing
the Subordinate Lien Bonds is adopted are at least equal to the sum of (a) 1.10
times the Average Annual Principal and Interest Requirement for the Subordinate
Lien Bonds outstanding other than any Subordinate Lien Bonds issued for Capital
Additions for which capitalized interest has been provided for at least twelve
months subsequent to the date of issuance of the new Subordinate Lien Bonds
29
being issued that are payable from and secured by a lien on and pledge of the
Pledged Revenues of the System, including Subordinate Lien Bonds then proposed
g � 8
and (b) 1.25 times the Average Annual Principal and Interest Requirements for all
outstanding Priority Bonds other than any Priority Bonds issued for Capital
Additions for which capitalized interest has been provided for at least twelve
months subsequent to the date of the new Subordinate Lien Bonds being issued.
In making a determination of the Net Earnings, the Accountant may take into
consideration a change in the rates and charges for services and facilities afforded
by the System that became effective at least sixty (60) days prior to the last day of
the period for which Net Earnings are determined and, for purposes of satisfying
the above Net Earnings test, make a pro forma determination of the Net Earnings
of the System for the period of time covered by his certification or opinion based
on such change in rates and charges being in effect for the entire period covered
by the Accountant's certificate or opinion.
(d) Conditions Precedent for Issuance of Subordinate Lien Bonds - Capital
Additions: Initial Issue. The City covenants and agrees that Additional Bonds will
not be issued for the purpose of financing Capital Additions, unless the same
conditions precedent specified in clause (a) above have been satisfied and, in
addition thereto, the conditions precedent specified in clause (b) above are satisfied
or, in the alternative, the City shall have obtained:
(i) from the Engineer of Record a comprehensive Engineering
Report for each Capital Addition to be financed, which report shall (A)
contain (1) detailed estimates of the cost of acquiring and constructing the
( ) q g g
Capital Addition, (2) the estimated date the acquisition and construction of
the Capital Addition will be completed and commercially operative, and (3)
a detailed analysis of the impact of the Capital Addition on the financial
operations of the system for which the Capital Addition is to be integrated
and to the System as a whole during the construction thereof and for at least
five Years after the date the Capital Addition becomes commercially
operative, and (B) conclude that (1) the Capital Addition is necessary and
will substantially increase the capacity, or is needed to replace existing
facilities, to meet current and projected demands for the service or product
to be provided thereby, and (2) the estimated cost of providing the service
or product from the Capital Addition will be reasonable in comparison with
projected costs for furnishing such service or product from other reason-
ably available sources; and
(ii) a certificate of the Engineer of Record to the effect that, based
on the Engineering Report prepared for each Capital Addition, the projected
Net Earnings for each of the five years subsequent to the date the Capital
Addition becomes commercially operative (as estimated in the Engineering
30
Report) will be equal to at least the sum of (A) 1.25 times the Average
Annual Principal and Interest Requirements for Priority Bonds then
outstanding or incurred and all Priority Bonds estimated to be issued, if any,
for all Capital Improvements and for all Capital Additions then in progress
or then being initiated, during the period from the date the first series of
obligations for the Capital Additions is to be delivered through the fifth year
subsequent to the date the Capital Addition is estimated to become
commercially operative, and (B) 1.10 times the Average Annual Principal
and Interest Requirements for Subordinate Lien Bonds payable from the
Pledged Revenues, which are then outstanding or incurred and all
Subordinate Lien Bonds estimated to be issued, if any, for all Capital Im-
provements and for all Capital Additions then in progress or then being
initiated, during the period from the date the first series of obligations for
the Capital Addition is to be delivered through the fifth year subsequent to
the date the Capital Addition is estimated to become commercially operative.
(e) Subsequent Issues. Once a Capital Addition has been initiated by
meeting the conditions precedent specified in clauses (d)(i) and (d)(ii) above and
the initial Priority Bonds or Subordinate Lien Bonds delivered therefor, the City
reserves the right to issue Subordinate Lien Bonds to finance the remaining costs
of such Capital Addition in such amounts as may be necessary to complete the
acquisition and construction thereof and make the same commercially operative
without satisfaction of any condition precedent under clauses (d)(i) and (d)(ii) or
clause (b) of this Section but subject to satisfaction of the following conditions
precedent:
(i) the City makes a forecast (the "Forecast") of the operations of
the System demonstrating the System's ability to pay all obligations, payable
from the Pledged Revenues of the System to be outstanding after the
issuance of the Subordinate Lien Bonds then being issued for the period (the
"Forecast Period") of each ensuing year through the fifth year subsequent to
the latest estimated date such Capital Addition is expected to be commer-
cially operative, and
(ii) the Engineer of Record reviews such Forecast and executes a
certificate to the effect that such Forecast is reasonable, and based thereon
(and such other factors deemed to be relevant), the Pledged Revenues of
the System will be adequate to pay all the obligations, payable from the
Pledged Revenues of the System to be outstanding after the issuance of the
Subordinate Lien Bonds then being issued for the Forecast Period.
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(f) The City reserves the right to issue Additional Bonds to refund all or
any part of the outstanding Priority Bonds or Subordinate Lien Bonds (pursuant
to any law then available), upon such terms and conditions as the City Council of
the City may deem to be in the best interest of the City and its inhabitants, and
if less than all such outstanding Priority Bonds or Subordinate Lien Bonds are
refunded, the conditions precedent prescribed (for the issuance of Subordinate Lien
Bonds) set forth in clauses (a) and (b) of this Section shall be satisfied and the
Accountant's certificate or opinion required by clause (b) shall give effect to the
issuance of the proposed refunding bonds (and shall not give effect to the Priority
Bonds or Subordinate Lien Bonds being refunded following their cancellation or
provision being made for their payment). No Accountant's certificate otherwise
required by clause (b) will be required for refunding bonds, after giving effect to
such proposed refunding, if there is no increase in debt service for any Year before
or including any Year in which there will be debt service on Priority Bonds or
Subordinate Lien Bonds outstanding both before and after such refunding and any
such refunding bond does not have a lien on Pledged Revenues superior to the
obligation which it refunds.
(g) With reference to Priority Bonds and Subordinate Lien Bonds
anticipated and estimated to be issued or incurred, the Average Annual Principal
and Interest Requirements therefor shall be those reasonably estimated and
computed by the City's Director of Finance (or other officer of the City then having
the primary responsibility for the financial affairs of the City). In the preparation
of the Engineering Report required in clause (d)(i) above, the Engineer of Record
may rely on other experts or professionals, including those in the employment of
the City, provided such Engineering Report discloses the extent of such reliance
and concludes it is reasonable so to rely. In connection with the issuance of
Subordinate Lien Bonds or Priority Bonds for Capital Additions, the certificate of
the City's Director of Finance and Engineer of Record, together with the Engi-
neering Report for the initial issue and the Forecast for a subsequent issue, shall
be conclusive evidence and the only evidence required to show compliance with the
provisions and requirements and this clause of this Section.
(h) Priority Bonds or Subordinate Lien Bonds for Capital Additions may
be combined in a single issue with Priority Bonds or Subordinate Lien Bonds, as
the case may be, for Capital Improvements or for any lawful purpose provided
the conditions precedent set forth in clauses (b) through (f) are complied with as
the same relate to the appropriate purpose.
(i) The City may, at any time and from time to time, for any lawful
purpose, issue Subordinated Obligations, the principal of and redemption premium,
if any, and interest on which is payable from and secured by a pledge of and lien
on the Pledged Revenues junior and subordinate to the lien and pledge created
32
hereby for the security of the Priority Bonds and Subordinate Lien Bonds, the
payments required to be made hereunder into the Debt Service Fund, the Reserve
Fund and the retained amount of Operating Expenses in accordance with Section
9; provided, however, that any such pledge and lien securing the Subordinated
Obligations shall be, and shall be expressed to be, subordinate in all respects to the
pledge of and lien on the Pledged Revenues as security for the Priority Bonds and
Subordinate Lien Bonds.
(j) The City may, at any time and from time to time, for any lawful
purpose, issue Priority Bonds pursuant to the provisions of the Priority Bond
Ordinance and any future ordinance authorizing Priority Bonds.
Section 22. GENERAL COVENANTS. That the City further covenants
and agrees that in accordance with and to the extent required or permitted by
law:
(a) PERFORMANCE. It will faithfully perform at all times any and all
covenants, undertakings, stipulations, and provisions contained in this Ordinance,
and each ordinance authorizing the issuance of Priority Bonds or Subordinate Lien
Bonds, and in each and every Priority Bond and Subordinate Lien Bond; it will
promptly pay or cause to be paid the principal amount of and interest on every
Priority Bond and Subordinate Lien Bond, on the dates and in the places and
manner prescribed in such ordinances and Priority Bonds or Subordinate Lien
Bonds; and it will, at the time and in the manner prescribed, deposit or cause to
be deposited the amounts required to be deposited into the System Fund and the
Funds herein created; and any registered owner of any Subordinate Lien Bond may
require the City, its officials and employees to carry out, respect or enforce the
covenants and obligations of this Ordinance, or any ordinance authorizing the
issuance of Priority Bonds or Subordinate Lien Bonds, by all legal and equitable
means, including specifically, but without limitation, the use and filing of mandamus
proceedings, in any court of competent jurisdiction, against the City, its officials and
employees.
(b) CITY'S LEGAL AUTHORITY. It is a duly created and existing home
rule city of the State of Texas, and is duly authorized under the laws of the State
of Texas to issue the Bonds; that all action on its part for the issuance of the
Bonds has been duly and effectively taken, and that the Bonds in the hands of the
owners thereof are and will be valid and enforceable special obligations of the City
in accordance with their terms.
(c) ACQUISITION AND CONSTRUCTION; OPERATION AND
MAINTENANCE. (1) The City shall use its best efforts in accordance with
Prudent Utility Practice to acquire and construct, or cause to be acquired and
33
.
constructed, any Capital Additions or Capital Improvements, in accordance with
the plans and specifications therefor, as modified from time to time with due
diligence and in a sound and economical manner; and (2) the City shall at all
times use its best efforts to operate or cause to be operated the System properly
and in an efficient manner, consistent with Prudent Utility Practice, and shall use
its best efforts to maintain, preserve, reconstruct and keep the same or cause the
same to be so maintained, preserved, reconstructed and kept, with the
appurtenances and every part and parcel thereof, in good repair, working order
and condition, and shall from time to time make, or use its best efforts to cause
to be made, all necessary and proper repairs, replacement and renewals so that
at all times the operation of the System may be properly and advantageously
conducted.
(d) TITLE. It has or will obtain lawful title, whether such title is in fee
or lesser interest, to the lands, buildings, structures, and facilities constituting the
System, that it warrants that it will defend the title to all the aforesaid lands,
buildings, structures and facilities, and every part thereof, for the benefit of the
owners of the Bonds, against the claims and demands of all persons whomsoever,
that it is lawfully qualified to pledge the Pledged Revenues to the payment of the
Bonds in the manner prescribed herein, and has lawfully exercised such rights.
(e) LIENS. It will from time to time and before the same become
delinquent pay and discharge all taxes, assessments, and governmental charges, if
any, which shall be lawfully imposed upon it, or the System; it will pay all lawful
claims for rents, royalties, labor, materials, and supplies which if unpaid might by
law become a lien or charge thereon, the lien of which would be prior to or
interfere with the liens hereof, so that the priority of the liens granted hereunder
shall be fully preserved in the manner provided herein, and it will not create or
suffer to be created any mechanic's, laborer's, materialman's, or other lien or
charge which might or could be prior to the liens hereof, or do or suffer any matter
or thing whereby the liens hereof might or could be impaired; provided however,
that no such tax, assessment, or charge, and that no such claims which might be
used as the basis of a mechanic's, laborer's, materialman's, or other lien or charge,
shall be required to be paid so long as the validity of the same shall be contested
in good faith by the City.
(f) NO FREE SERVICE. No free service or service otherwise than in
accordance with the established rate schedule shall be furnished, directly or
indirectly, by the System to any person, firm, corporation, or other entity. No part
of the salary of any official or employee of the City or his replacement shall be
paid from Pledged Revenues unless and only to the extent the duties and
performances of such official or employee or his replacement appertain directly to
34
the System. To the extent the City receives the services of the System, such
services shall be accounted for according to the established rate schedule.
(g) FURTHER ENCUMBRANCE. It will not additionally encumber the
Pledged Revenues in any manner, except as permitted in this Ordinance in
connection with Priority Bonds and Subordinate Lien Bonds, unless said
encumbrance is made junior and subordinate in all respects to the liens, pledges,
covenants, and agreements of this Ordinance; but the right of the City to issue
obligations payable from a subordinate lien on the Pledged Revenues is specifically
recognized and retained.
(h) SALE, LEASE OR DISPOSAL OF PROPERTY. No part of the
System shall be sold, leased, mortgaged, demolished, removed, or otherwise
disposed of, except as follows:
(1) To the extent permitted by law, the City may sell or exchange
at any time and from time to time any property or facilities constituting
part of the System only if (a) it shall determine such property or facilities
are not useful in the operation of the System, or (b) the proceeds of such
sale are $250,000 or less, or it shall have received a certificate of the
Engineer of Record and the City Manager stating, in the opinion of the
signers, that the fair market value of the property or facilities exchanged is
$250,000 or less, or (c) if such proceeds or fair market value exceeds
$250,000 it shall have received a certificate of the Engineer of Record and
the City Manager stating, in the opinion of the signers, that the sale or
exchange of such property or facilities will not impair the ability of the City
to comply during the current or any future year with the provisions of clause
(1) of this Section. The proceeds of any such sale or exchange not used to
acquire other property necessary or desirable for the safe or efficient
operation of the System shall forthwith, at the option of the City (i) be used
to redeem or purchase Priority Bonds or any Subordinate Lien Bonds, or (ii)
otherwise be used to provide for the payment of Priority Bonds or any
Subordinate Lien Bonds; and
(2) To the extent permitted by law, the City may lease or make
contracts or grant licenses for the operation of, or make arrangements for
the use of, or grant easements or other rights with respect to, any part of
the System, provided that any such lease, contract, license, arrangement,
easement or right (i) does not impede the operation by the City of the
System and (ii) does not in any manner impair or adversely affect the rights
or security of the owners of the Bonds under this Ordinance; and provided,
further, that if the depreciated cost of the property to be covered by any
such lease, contract, license, arrangement, easement or other right is in
35
I
excess of $500,000, the City shall have received a certificate of the Engineer
of Record and the City Manager that the action of the City with respect
thereto does not result in a breach of the conditions under this clause (2).
Any payments received by the City under or in connection with any such
lease, contract, license, arrangement, easement or right in respect of the
System or any part thereof shall constitute Gross Revenues.
(i) BOOKS, RECORDS AND ACCOUNTS. The City shall keep proper
books, records and accounts separate and apart from all other records and
accounts, in which complete and correct entries shall be made of all transactions
relating to the System and the City shall cause said books and accounts to be
audited annually as of the close of each Fiscal Year by the Accountant.
(j) INSURANCE. (1) It shall cause to be insured such parts of the System
as would usually be insured by corporations operating like properties, with a
responsible insurance company or companies, against risks, accidents or casualties
against which and to the extent insurance is usually carried by corporations
operating like properties, including, to the extent reasonably obtainable, fire and
extended coverage insurance, insurance against damage by floods, and use and
occupancy insurance. Public liability and property damage insurance shall also be
carried unless the City Attorney of the City gives a written opinion to the effect
that the City is not liable for claims which would be protected by such insurance.
At any time while any contractor engaged in construction work shall be fully
responsible therefor, the City shall not be required to carry insurance on the work
being constructed if the contractor is required to carry appropriate insurance. All
such policies shall be open to the inspection of the bondholders and their repre-
sentatives at all reasonable times.
(2) The annual audit hereinafter required shall contain a section
commenting on whether or not the City has complied with the requirements of
this Section with respect to the maintenance of insurance, and listing all policies
carried, and whether or not all insurance premiums upon the insurance policies
to which reference is hereinbefore made have been paid.
(k) RATE COVENANT. The City will fix, establish, maintain, and collect
such rates, charges, and fees for the use and availability of the System at all times
as are necessary to produce Gross Revenues and other Pledged Revenues equal to
the greater of amounts sufficient (a) (1) to pay all current Operating Expenses of
the System, and (2) to produce Net Revenues for each Year at least equal to the
sum of (i) 1.25 times the Average Annual Principal and Interest Requirements of
all then outstanding Priority Bonds and (ii) 1.10 times the Average Annual Principal
and Interest Requirements of all then outstanding Subordinate Lien Bonds; or (b)
to pay the sum of (i) all current Operating Expenses, (ii) the Average Annual
36
Principal and Interest Requirements on the then outstanding Priority Bonds and
Subordinate Lien Bonds, (iii) required deposits to the Reserve Fund required for
the Priority Bonds and Subordinate Lien Bonds, and (iv) amounts required to pay
all other obligations of the System reasonably anticipated to be paid from Gross
Revenues during the current Year. Average Annual Principal and Interest Re-
quirements as used in this clause (4) shall exclude debt service on any Priority
Bonds or Subordinate Lien Bonds if capitalized interest for such bonds has been
provided for at least the next twelve months.
(1) AUDITS. After the close of each year while any Priority Bonds or any
Subordinate Lien Bonds are outstanding, an audit will be made of the books and
accounts relating to the System and the Pledged Revenues by the Accountant. As
soon as practicable after the close of each such year, and when said audit has been
completed and made available to the City, a copy of such audit for the preceding
year shall be mailed to the Municipal Advisory Council of Texas and to any holder
of 5% or more in aggregate principal amount of the then outstanding Bonds who
shall so request in writing. Such annual audit reports shall be open to the
inspection of the registered owners of the Bonds and their agents and represen-
tatives at all reasonable times.
(m) GOVERNMENTAL AGENCIES. It will comply with all of the terms
and conditions of any and all franchises, permits and authorizations applicable to
or necessary with respect to the System, and which have been obtained from any
governmental agency; and the City has or will obtain and keep in full force and
effect all franchises, permits, authorization and other requirements applicable to or
necessary with respect to the acquisition, construction, equipment, operation and
maintenance of the System.
(n) NO COMPETITION. To the extent it legally may, it will not grant
any franchise or permit for the acquisition, construction or operation of any
competing facilities which might be used as a substitute for the System's facilities,
and, to the extent that it legally may, the City will prohibit any such competing
facilities.
(o) RIGHTS OF INSPECTION. The Engineer of Record or any registered
owner of $100,000 in aggregate principal amount of the Bonds then outstanding
shall have the right at all reasonable times to inspect the System and all records,
accounts and data of the City relating thereto, and upon request the City shall
furnish to the Engineer of Record or such registered owner, as the case may be,
such financial statements, reports and other information relating to the City and the
System as the Engineer of Record or such registered owner may from time to time
reasonably request.
37
Section 23. TAX COVENANTS. The City covenants to take any action
to assure, or refrain from any action which would adversely affect, the treatment
of the Bonds as obligations described in section 103 of the Code, the interest on
which is not includable in the "gross income" of the holder for purposes of federal
income taxation. In furtherance thereof, the City covenants as follows:
(a) to take any action to assure that no more than 10 percent of
the proceeds of the Bonds (less amounts deposited to a reserve fund, if any)
are used for any "private business use", as defined in section 141(b)(6) of the
Code or, if more than 10 percent of the proceeds are so used, that amounts,
whether or not received by the City, with respect to such private business
use, do not, under the terms of this Ordinance or any underlying
arrangement, directly or indirectly, secure or provide for the payment of
more than 10 percent of the debt service on the Bonds, in contravention of
section 141(b)(2) of the Code;
(b) to take any action to assure that in the event that the "private
business use" described in subsection (a) hereof exceeds 5 percent of the
proceeds of the Bonds (less amounts deposited into a reserve fund, if any)
then the amount in excess of 5 percent is used for a "private business use"
which is "related" and not "disproportionate", within the meaning of section
141(b)(3) of the Code, to the governmental use;
(c) to take any action to assure that no amount which is greater
than the lesser of $5,000,000, or 5 percent of the proceeds of the Bonds
(less amounts deposited into a reserve fund, if any) is directly or indirectly
used to finance loans to persons, other than state or local governmental
units, in contravention of section 141(c) of the Code;
(d) to refrain from taking any action which would otherwise result
in the Bonds being treated as "private activity bonds" within the meaning of
section 141(b) of the Code;
(e) to refrain from taking any action that would result in the Bonds
being "federally guaranteed" within the meaning of section 149(b) of the
Code;
(f) to refrain from using any portion of the proceeds of the Bonds,
directly or indirectly, to acquire or to replace funds which were used, directly
or indirectly, to acquire investment property (as defined in section 148(b)(2)
of the Code) which produces a materially higher yield over the term of the
Bonds, other than investment property acquired with --
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(1) proceeds of the Bonds invested for a reasonable temporary
period of 3 years or less until such proceeds are needed for the
purpose for which the Bonds are issued,
(2) amounts invested in a bona fide debt service fund, within
the meaning of section 1.103-13(b)(12) of the Treasury Regulations,
and
(3) amounts deposited in any reasonably required reserve or
replacement fund to the extent such amounts do not exceed 10
percent of the proceeds of the Bonds;
(g) to otherwise restrict the use of the proceeds of the Bonds or
amounts treated as proceeds of the Bonds, as may be necessary, so that the
Bonds do not otherwise contravene the requirements of section 148 of the
Code (relating to arbitrage) and, to the extent applicable, section 149(d) of
the Code (relating to advance refundings);
(h) to pay to the United States of America at least once during
each five-year period (beginning on the date of delivery of the Bonds) an
amount that is at least equal to 90 percent of the "Excess Earnings", within
the meaning of section 148(f) of the Code and to pay to the United States
of America, not later than 60 days after the Bonds have been paid in full,
100 percent of the amount then required to be paid as a result of Excess
Earnings under section 148(f) of the Code; and
(i) to maintain such records as will enable the City to fulfill its
responsibilities under this section and section 148 of the Code and to retain
such records for at least six years following the final payment of principal
and interest on the Bonds.
It is the understanding of the City that the covenants contained herein are intended
to assure compliance with the Code and any regulations or rulings promulgated by
the U.S. Department of the Treasury pursuant thereto. In the event that
regulations or rulings are hereafter promulgated which modify, or expand provisions
of the Code, as applicable to the Bonds, the City will not be required to comply
with any covenant contained herein to the extent that such modification or
expansion, in the opinion of nationally-recognized bond counsel, will not adversely
affect the exemption from federal income taxation of interest on the Bonds under
section 103 of the Code. In the event that regulations or rulings are hereafter
promulgated which impose additional requirements which are applicable to the
Bonds, the City agrees to comply with the additional requirements to the extent
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necessary, in the opinion of nationally-recognized bond counsel, to preserve the
exemption from federal income taxation of interest on the Bonds under section
103 of the Code.
In addition, the Texas Water Development Board has informed the City
that a portion of the amount of the purchase price of some installments of the
Bonds will be derived from amounts provided by the United States Government
under the Water Quality Act of 1987 and a portion of the amount of the purchase
price of some installments of the Bonds will be provided from amounts which are
or will be transferred proceeds of the State of Texas Water Development Bonds,
Series 1988A and Series 1990A, issued by the Texas Water Development Board.
The City will take all reasonable actions specified in any written instructions
provided to the City by the Texas Water Development Board to assure that the
interest on said Series 1988A Bonds and Series 1990A Bonds, or any bonds issued
to refund said Series 1988A Bonds or Series 1990A Bonds, shall be excludable
from the gross income of the holders there for federal income tax purposes.
In order to facilitate compliance with the above covenants (g), (h), and (i),
a "Rebate Fund" is hereby established by the City for the sole benefit of the United
States of America, and such Fund shall not be subject to the claim of any other
person, including without limitation the bondholders. The Rebate Fund is
established for the additional purpose of compliance with section 148 of the Code.
Section 24. CONSTRUCTION FUND. That the City Council has
established or will establish a Construction Fund at an official depository of the
City. Immediately after the sale and delivery of the Bonds, the City Council shall
deposit into said Construction Fund all of the proceeds from the sale of the Bonds
except for an amount to be retained by the City for paying costs and expenses of
the authorization, issuance, sale and delivery of the Bonds, including the payment
of printing costs, the fees and expenses of financial consultants or advisors, bond
counsel, and other professional consultants or advisors. The Construction Fund
shall be established, drawn on, and used by the City Council solely for the purpose
for which the Bonds were issued.
Section 25. AMENDMENT OF ORDINANCE. (a) That the registered
owners of 51% in aggregate principal amount of the Bonds then outstanding shall
have the right from time to time to approve any amendment to this Ordinance
which may be deemed necessary or desirable by the City, provided, however, that
without the consent of the registered owners of all of the Bonds at the time
outstanding, nothing herein contained shall permit or be construed to permit the
amendment of the terms and conditions in this Ordinance or in the Bonds so as
to:
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(1) Make any change in the maturity of any of the outstanding
Bonds;
(2) Reduce the rate of interest borne by any of the outstanding
Bonds;
(3) Reduce the amount of the principal payable on the outstanding
Bonds;
(4) Modify the terms of payment of principal of, premium, if any, or
interest on the outstanding Bonds, or impose any conditions with
respect to such payment;
(5) Affect the rights of the registered owners of less than all of the Bonds
then outstanding;
(6) Amend this clause (a) of this Section; or
(7) Change the minimum percentage of the principal amount of Bonds
necessary for consent to any amendment;
unless such amendment or amendments be approved by the registered owners of
all of the Bonds then outstanding.
(b) That if at any time the City shall desire to amend the Ordinance under
this Section, the City shall cause notice of the proposed amendment to be published
in a financial newspaper or journal published in The City of New York, New York,
and in a newspaper of general circulation in the City, once during each calendar
week for at least two successive calendar weeks. Such notice shall briefly set forth
the nature of the proposed amendment and shall state that a copy thereof is on file
at the principal office of the Paying Agent/Registrar for inspection by all holders
of Bonds. Such publication is not required, however, if notice in writing is given
to each registered owner of Bonds.
(c) That whenever at any time not less than thirty days, and within one
year, from the date of the first publication of said notice or other service of written
notice the City shall receive an instrument or instruments executed by the registered
owners of at least 51% in aggregate principal amount of the Bonds then out-
standing, which instrument or instruments shall refer to the proposed amendment
described in said notice and which specifically consent to and approve such
amendment in substantially the form of the copy thereof on file with the Paying
Agent/Registrar, the City Council may pass the amendatory ordinance in
substantially the same form.
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(d) That upon the passage of any amendatory ordinance pursuant to the
provisions of this Section, this Ordinance shall be deemed to be amended in
accordance with such amendatory ordinance, and the respective rights, duties and
obligations under this Ordinance of the City and all the registered owners of then
outstanding Bonds and all future Subordinate Lien Bonds shall thereafter be deter-
mined, exercised and enforced hereunder, subject in all respects to such
amendments.
(e) That any consent given by the registered owner of a Bond pursuant to
the provisions of this Section shall be irrevocable for a period of six months from
the date of the first publication of the notice provided for in this Section, and shall
be conclusive and binding upon all future registered owners of the same Bond
during such period. Such consent may be revoked at any time after six months
from the date of the first publication of such notice by the registered owner who
gave such consent, or by a successor in title, by filing notice thereof with the Paying
Agent/Registrar and the City, but such revocation shall not be effective if the
registered owners of 51% in aggregate principal amount of the then outstanding
Bonds as in this Section defined have, prior to the attempted revocation, consented
to and approved the amendment.
(f) The foregoing provisions of this Section notwithstanding, the City by
action of the City Council may amend this Ordinance for any one or more of the
following purposes:
(1) To add to the covenants and agreements of the City in this
Ordinance contained, other covenants and agreements thereafter to be
observed, grant additional rights or remedies to the registered owners of
• Bonds or to surrender, restrict or limit any right or power herein reserved
to or conferred upon the City;
(2) To make such provisions for the purpose of curing any ambiguity,
or curing, correcting or supplementing any defective provision contained in
this Ordinance, or in regard to clarifying matters or questions arising under
this Ordinance, as are necessary or desirable and not contrary to or
inconsistent with this Ordinance and which shall not adversely affect the
interests of the registered owners of the Bonds then outstanding;
(3) To modify any of the provisions of this Ordinance in any other
respect whatever, provided that (i) such modification shall be, and be
expressed to be, effective only after all Bonds and each series of Additional
Bonds outstanding at the date of the adoption of such modification shall
cease to be outstanding, and (ii) such modification shall be specifically
42
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referred to in the text of all Subordinate Lien Bonds issued after the date
of the adoption of such modification.
Section 26. DAMAGED, MUTILATED, LOST, STOLEN, OR
DESTROYED BONDS. (a) That in the event any outstanding Bond is damaged,
mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be
printed, executed, and delivered, a new bond of the same principal amount,
maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed
Bond, in replacement for such Bond in the manner hereinafter provided.
(b) Application for replacement of damaged, mutilated, lost, stolen, or
destroyed Bonds shall be made to the Paying Agent/Registrar. In every case of
loss, theft, or destruction of a Bond, the applicant for a replacement bond shall
furnish to the City and to the Paying Agent/Registrar such security or indemnity
as may be required by them to save each of them harmless from any loss or
damage with respect thereto. Also, in every case of loss, theft, or destruction of
a Bond, the applicant shall furnish to the City and to the Paying Agent/Registrar
evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the
case may be. In every case of damage or mutilation of a Bond, the applicant shall
surrender to the Paying Agent/Registrar for cancellation the Bond so damaged or •
mutilated.
(c) Notwithstanding the foregoing provisions of this Section, in the event
any such Bond shall have matured, and no default has occurred which is then
continuing in the payment of the principal of, redemption premium, if any, or
interest on the Bond, the City may authorize the payment of the same (without
surrender thereof except in the case of a damaged or mutilated Bond) instead of
issuing a replacement Bond, provided security or indemnity is furnished as above
provided in this Section.
(d) Prior to the issuance of any replacement bond, the Paying Agent/Reg-
istrar shall charge the owner of such Bond with all legal, printing, and other
expenses in connection therewith. Every replacement bond issued pursuant to the
provisions of this Section by virtue of the fact that any Bond is lost, stolen, or
destroyed shall constitute a contractual obligation of the City whether or not the
lost, stolen, or destroyed Bond shall be found at any time, or be enforceable by
anyone, and shall be entitled to all the benefits of this Ordinance equally and
with any and all other Bonds duly issued under this Ordinance.
proportionately Y Y
(e) In accordance with Section 6 of Vernon's Ann. Tex. Civ. St. Art. 717k-
6, this Section of this Ordinance shall constitute authority for the issuance of any
such replacement bond without necessity of further action by the governing body
of the City or any other body or person, and the duty of the replacement of such
43
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bonds is hereby authorized and imposed upon the Paying Agent/Registrar, and the
Paying Agent/Registrar shall authenticate and deliver such bonds in the form and
manner and with the effect, as provided in Section 5(d) of this Ordinance for
Bonds issued in exchange for other Bonds.
Section 27. APPROVAL AND REGISTRATION OF BONDS. That the
Mayor of the City is hereby authorized to have control of the Bonds and all
necessary records and proceedings pertaining to the Bonds pending their delivery
and their investigation, examination and approval by the Attorney General of the
State of Texas, and their registration by the Comptroller of Public Accounts of the
State of Texas. Upon registration of the Bonds, said Comptroller of Public
Accounts (or a deputy designated in writing to act for said Comptroller) shall
manually sign the Comptroller's Registration Certificate accompanying the Bonds,
and the seal of said Comptroller shall be impressed, or placed in facsimile, on each
such certificate.
Section 28. FURTHER PROCEEDINGS. That the officers, employees and
agents of the City, and each of them, shall be and they are hereby expressly
authorized, empowered, and directed from time to time and at any time to do and
perform all such acts and things and to execute, acknowledge, and deliver in the
name and under the corporate seal and on behalf of the City all such instruments,
whether or not herein mentioned, as may be necessary or desirable in order to
carry out the terms and provisions of this Ordinance and of the bonds to be issued
hereunder and the City Manager is authorized to enter into the Paying
Agent/Registrar Agreement and the State Revolving Fund Bonds Escrow
Agreement with the Paying Agent/Registrar in substantially the forms presented at
the meeting at which this Ordinance is passed. It is further provided that the
recitals and findings set forth in the recitals to this Ordinance are hereby
incorporated into this Ordinance and made a part hereof.
Section 29. SALE. (a) The Bonds are hereby sold to the Texas Water
Development Board for the price of par. The Bonds of each series may be
delivered to the Texas Water Development Board and paid for in installments and
at such times as shall be approved by the City Manager, provided none of the
Bonds shall be so delivered without the City's receiving full payment therefor. The
Bonds initially delivered shall be registered in the manner described in subsection
(c) below.
(b) The City Council hereby approves the form and content of the Official
Statement filed with the Texas Water Development Board, which describes the
Bonds, the security therefor, and the financial condition of the City.
44
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(c) To facilitate the delivery of the Bonds in installments to the Texas
Water Development Board, the City hereby instructs the Paying Agent/Registrar
to hold the Bonds in escrow pursuant to the State Revolving Funds Bond Escrow
Agreement, and therefore the Bonds shall be initially registered in the name of the
Paying Agent/Registrar. Upon receipt of advice from the City from time to time
that money is available from the Texas Water Development Board, the Paying
Agent/Registrar shall deliver Bonds to the Texas Water Development Board in
accordance with the instructions of the City. The Paying Agent/Registrar shall
complete the "Delivery Certificate" on each installment of Bonds so delivered to the
Texas Water Development Board as provided in Section 5(a) of this Ordinance,
and interest on each such installment of Bonds so delivered shall commence from
such date.
(d) It is the intent of the parties to the sale of the Bonds that if the Texas
Water Development Board ever determines to sell all or a part of the Bonds, it
shall notify the City at least 60 days prior to the sale of the Bonds of the decision
to so sell the Bonds.
Section 30. FINAL ACCOUNTING. That the City shall render a final
accounting to the Texas Water Development Board in reference to the total cost
incurred by the City for improvements and extensions to the System together with
a copy of "as built" plans of the project upon completion.
Section 31. SURPLUS BOND PROCEEDS. That the City shall use any
surplus proceeds from the Bonds remaining after completion of the improvements
and extensions of the System for the purchase of the Bonds owned by the Texas
Water Development Board.
Section 32. ANNUAL AND MONTHLY REPORTS. That monthly
operating statements and annual audits of the City shall be delivered to the Texas
Water Development Baord as long as the State of Texas owns any of the Bonds,
and that the monthly operating statement shall be in such detail as requested by
the Development Fund Manager of the Texas Water Development Board.
Section 33. COMPLIANCE WITH THE TEXAS WATER DEVELOP-
MENT BOARD'S RULES AND REGULATIONS. That the City covenants to
comply with the rules and regulations of the Texas Water Development Board.
Section 34. EMERGENCY. That it is hereby officially found and
determined: that a case of emergency or urgent public necessity exists which
requires the holding of the meeting at which this Ordinance is passed, such
emergency or urgent public necessity being that it is necessary that the proceeds
from the sale of said bonds are required as soon as possible and without delay for
45
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e
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necessary and urgently needed public improvements; and that said meeting was
open to the public, and public notice of the time, place, and purpose of said
meeting was given, all as required by Vernon's Ann. Civ. St. Article 6252-17.
Section 35. IMMEDIATE EFFECT. That this Ordinance shall be effective
immediately from and after its passage in accordance with the provisions of the
Charter of the City, and it is accordingly so ordained.
46
L
Ad 376481
Affidavit of Publication
THE STATE OF TEXAS
G
ORDINANCE WAIVING9 COUNTY OF WICHITA
SEC-
TION 22-1(a)($)AND SECTION
(P22-1(a)(9)OF THE CODE OF OR-
a DINANCES GRANTING DER- e
DRINK TEMS,PERRMI FOOD 1 On this 3rd day of August
TING OF SIGNS,AND THE RES-
ERVATION OF A PORTION OF
ANIMA FRIENDSHIP LEAGUE 1 A.D. 1990
EVENT 6 OCTOBER 1990 personally appeared before me, the undersigned authority
AN ORDINANCE NO.F HE CITY Dance Ming
bookkeeper
OF WICHITA FALLS, TEXAS,VACATING, AND
ABANDONING AN IRRIGATION for the Times Publishing Company of Wichita Falls, publishers oif the Wichita Falls
CANAL LOT I,BLOCK 2,J.M. y
Times/Record News, a newspaper published at Wichita Falls in Wichita Count
CARSON
W CHITA FALLS, TEXAS;
AUTHORIZING THE CON- Texas, and upon being duly sworn by me, on oath states that the attached
VEYANCE OF THE EASEMENT advertisement is a true and correct copy of advertising published
CLOSED, ABANDONED, AND
VACATED TO THE FEE OWNER: one (1) issues thereof on the following dates:
FINDING AND DETERMINING in THE MEETING THAT THIS ORDI-
NANCE WAS OPEN TO THE PUB August 3 r 1990
UC IN ACCORDANCE WITH THE
LAW
ORDINANCE No.45-90
11OX A,SU7 WAIVING APPEN- i `�
9(B)(a)OF THE C SECTION" C��, L 9—�1 \.J Ov.{��{.`}��
NANCES ODE OF ORDI-
PLACING CURB AND GUTTER Bookkeeper for Times Publishing Coin.p
AND 2' OCKRL SMITH AD-
DITION
of Wichita Falls
ORDINANCE NO.46-90
ORDINANCE WAIVING APPEN- f l
DIX A,SUBDIVISIONS SECTION f���-/ Subscribed and sworn to before me this the day and year first above written.
9(B)(2)(a)OF THE CODE OF
ORDINANCES WITH RESPECT TO
PLACING CURB AND !(:),'? �' S r
ON SHEPPARD ACCESS ROAD ,d �,, _,
c
ADJACENT TO THE �`%� -e'�`"G.-
OF LOT 1 WEST UNE
CARSON SUBDIVISION 2' J.M.
",AN ORDINANCE NO.47-90 51 ..n.,z .d a
n ORDINANCE OF THE CITY
OF WICHITA FALLS APPOINTING - -
flCER RCOKm MANAGEMENT OF , ! y
TITLE 6,S ACCORDANCE WITH r x _ 4;
SUBCHAPTER B OF THE
CODE; FINDING O GOVERNMENT 2
TERMENING THAT THE DE- ' "....
AT WHICH THIS ORD�NCE I
WAS PASSED WAS OPEN TO THE
i UBUC A S REQUIRED BY LAW ORDINANCE N0.4NoFT RDINANCE AUTHORIZING THE SUANCE AND SALsoot
OF CITY F WICHITA FALLS, TEXAS
ATER AND SEWER '
UBORDINATE LIEN REVENUE
BONDS,SERIES 1990-A;CITY OF
WICHITA FALLS, TEXAS WATER
AND SEWER SUBORDINATE UEN
REVENUE BONDS,SERIES 1990_
B;AND CITY OF WICHITA FALLS,
(TEXAS WATER AND SEWER
ISUBORDINATE UEN REVENUE
BONDS,SERIES 1990-C;THE EX-
ECUTION OF A PAYING
AGENT/REGISTRAR AGRE-
MENT;THERETO AND AUTHORIZING
OTHER MATTERS RELATED
.
•ORDINANCE NAMING REPLACE-
r--MENT ALTERNATE JUDGE FOR
-
AUGUST 11, 1990, CITY ELEC-
TEON
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