Ord 2037 8/1/1963 .r x
THE STATE OF TEXAS
COUNTY OF WICHITA
CITY OF WICHITA FALLS
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On this the 1st day of August, 1963, the Board of Aldermen
of the City of Wichita Falls, Texas, convened in Special Meeting,
at the regular meeting place, with the following members present,
fit to-wit:
John J. Gavin, Mayor,
J. Winston Wallander,
Dr.. D. Clifford Burross,
Aldermen,
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Roy V. Claytor, •
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Don Wade,
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W. B. Hicks, City Clerk, ;
and with the followin g absent: 0. D. McBride and Dr. Al T. Witcher y t;
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constituting a quorum, at which time the following proceedings were had:
Alderman Burross presented for the consideration of
the Board an ordinance and moved that it be passed. The motion was
seconded b y •Alderman Wade The ordinance was read in full
by the City Clerk.
The motion carrying with it the passage of the ordinance pre
veiled by the following vote:
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YEAS: Aldermen Wallander, Burross, Wade and
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Claytor and Mayor Gavin.
;°
3 NAYS: None.
The. Mayor announced that the ordinance had been passed.
The ordinance as passed is as follows:
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ORDINANCE NO. 2037
AN ORDINANCE
DIRECTING Tii,E ISSUANCE OF CITY OF WICHITA FALLS WATER
AND SEWER REVENUE BONDS, SERIES 1963, FOR THE PURPOSE
OF REFUNDING OUTSTANDING WATER SYSTEM REVENUE BONDS AND
54 ; SEWER SYSTEM REVENUE BONDS AND PROVIDING ADDITIONAL
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FUNDS TO .IMPROVE AND EXTEND SAID SYSTEMS; PROVIDING FOR
THE SECURITY AND PAYMENT OF SAID BONDS; AND ORDAINING
OTHER MATTERS WITH REFERENCE TO THE ISSUANCE, SALE AND
DELIVERY OF SAID BONDS.
1 WHEREAS, the City has outstanding the following described bonds:
1
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(a) City of Wichita Falls First Mortgage Waterworks System
_ s
Revenue Improvement Bonds, Series 2, dated May 1, 1944
ti secured by a lien on the City's waterworks system and the
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revenues therefrom x 1,633,000
City of Wichita Falls First Mortgage Waterworks Revenue
Bonds, Series 1947, dated June 1, 1947, secured by a lien
on the City's waterworks system and the revenues therefrom
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$ 402,000
Y
2,035,000
(b) City of Wichita Falls, Texas, Sewer Revenue Bonds,
Series 1949, dated December 1, 1949, secured by a pledge of
net revenues of the City's sanitary sewer system
t 525,000
/ Total $ 2,560,000
WHEREAS, the following bonds have been authorized by election
in said City but have not been issued:
(a) sewer system improvement and extension revenue
+a �
! bonds voted on April 4, 1961 `;y_2,500,000
(b) Water system improvement and extension revenue
bonds voted on June 4, 1963, 525,000
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$ 3,025,000;
WHEREAS, the City desires to issue bonds for the purpose of refund-
ing the outstanding bonds above described and to provide additional funds
to improve and extend the waterworks and sewer systems; and
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` WHEREAS, the City does not have the right to issue additional
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equa3, lien bonds payable from its waterworks revenues; and
WHEREAS, the City of Wichita Falls is an ' Eligible City" as de
fined in Chapter 119, enacted by the 58th Legislature, Regular Session,
and is authorized to proceed under said law; and
{ WHEREAS, the outstanding water revenue bonds are subject to
redemption on April 1, 1964, and of the outstanding sewer revenue bonds,
i
y a portion is due on December 1, 1963, and the remainder are subject
i to redemption on December 1, 1964, and said optional bonds have been
duly called for redemption on said dates;
BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS,
TEXAS:
Section 1. That said City's coupon bonds to be designated the
"City of Wichita Falls Water and Sewer Revenue Bonds, Series 1963," are
hereby authorized to be issued and delivered in accordance with the Con-
stitution and laws of the State of Texas in the principal amount of
' $5,585,000 for the purpose of refunding the $205601000 of City of
11
Wichita Falls Water Revenue Bonds and Sewer Revenue Bonds above describ-
ed and providing ;525,000 for improving and extending the City's
,4 � p � �55, mP g �
3 Waterworks System, and providing $2,500,000 for improving and extending
the City's Sewer System.
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,s Section 2. That said bonds shall. be dated August 1, 1963, shall
be numbered consecutively from 1 through 1117, shall be in the denomina-
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a tion of 5,000 each, and shall mature and become due and payable semi-
r`r
r:
annually and in the amounts, respectively, as set forth in the follow-
ing schedule:
YEARS AMOUNTS YEARS AMOUNTS
2-1-64 $ 110,000 8-1-76 110,000
8-1-64 110,000 2-1-77 115,000
2-1-65 1100000 8-1-77 110,000
8-1=65 110 000 2-1-78 115,000
2-1-66 110,000 8-1-78 110,000
8-1.66 110,000 2-1-79 115,000
2-1-67 110,000 8-1-79 110,000
8-1-67 110,000 2-1-80 115,000
2-1-68 110,000 8-1-80 110,000
8-i-68 110,000 2-1-81 115,000
2-1-69 110,000 000 8-1-81 110,000
8-1-69 110,000 2-1-82 115,000
2-1-70 110,000 8-1-82 110,000
8-1-70 110,000 2-1-83 115,000
2-1-71 110,000 8-1-83 110,000
8-1-71 1:?;0,000 2-1-84 115,000
2-1-72 115,000 8-1-84 110,000
Ii 8-1-72 110,000 2-1-85 115,000
2-1-73 115,000 8-1-85 110,000
3-1-73 110,000 2-1-86 115,000
000
2-1-74 115,000 8-1-86 110,000
{ 8-1-74 110,000 2-1-87 115/000
2-1-75 115,000 8-1-87 110,000
8-1-75 110,000 2-1-88 115,000
4 2-1-76 115,000 8-1-88 110,000
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Section 3. That as to said bonds scheduled to mature on and after
February 1, 1979, said City shall have the right and option to redeem such
bonds prior to their scheduled maturities, in whole, or in part on August
1, 1978,1978, or on any interest payment date thereafter, for the principal
amount thereof plus accrued interest to the date fixed for redemption.
4 At least thirty days before the date fixed for any such redemption,
b the City shall cause a written notice of such redemption to be published at
3 least once in a financial publication published in the City of New York,
New York. By the date fixed for any such redemption, due provision shall
£4 R
be made with the paying agents for the payment of the principal amount of
13 -the bonds to be so redeemed, plus accrued interest thereon to the date
k fixed for redemption. If the written notice of redemption is published,
,sand if due provision for payment is made, all as provided above, the bonds
which are to be so redeemed, thereby automatically shall be redeemed prior
to maturity, and they shall not bear interest after the date fixed for
redemption, and shall not be regarded as being outstanding except for the
purpose of receiving the funds so provided for such payment.
tk Section 4. That said bonds shall bear interest, from their date
an until maturity or redemption at the following rates:
all bonds scheduled to mature from February% i. , 1964 to
August 1 , 19 71 , both incl., ---- 3 % per annum;
all bonds scheduled to mature from February 1 , 1972 to
February .1 , 19 74 , `both incl., - -- 3 % per annum;
is
all bonds scheduled to mature from August 1 , 1974 to
August 1 1 19 83 , both ncl., - -- 3.20 % per annum;
all bonds scheduled to mature from February 1 , 19 84 to
August 1 , 19-87` , both inch, ---- 3.30 % per annum;
all bonds scheduled to mature from February-1 , 19 88 to
August 1 , 1988. , both incl., ---- 1/10 % per annum;
.,, with said interest to be evidenced by interest coupons payable on February
°I, 1, 1964, and semi-annually thereafter on each August 1 and February 1.
Section 5. That the principal of and interest on said bonds shall
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kbe payable to bearer, in lawful money of the United States of America, with-
;
1". exchange or collection charges to the bearer, upon presentation and
it
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[[£ surrender of proper bond or interest coupon, at the City National ,Bank,
Wichita Falls s >Texas or, at the option of the bearer, at the Chase
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, places paying
Manhattan Bank , New York, which laces shall be the
agents for said bonds.
Section 6. That each of said bonds and interest coupons shall be
signed by the imprinted or lithographed facsimile signature of the Mayor
of said City and countersigned by the imprinted or lithographed facsimile
signature of the City Clerk of said City, and the official seal of said
City shall be impressed, or printed, or lithographed on each of said bonds.
Section 7. That the form of said bonds, including the form of
Registration Certificate of the Comptroller of Public Accounts of the
State of Texas to be printed and endorsed on each bond, and the form of
the interest coupons to be attached to said bonds, shall be, respectively,
11 substantially as follows:
(FORM OF BOND)
NO. $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF WICHITA
CITY OF WICHITA FALLS WATER AND SEWER
REVENUE BOND
Mj SERIES 1963
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&, On 1, 19 , the City of Wichita Falls, in the
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County of Wichita, State of Texas, promises to pay to bearer the principal
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amount of
FIVE THOUSAND DOLLARS
and to pay interest thereon, from the date hereof, at the rate of
, per annum, evidenced by interest coupons payable February 1, 196i., and
y February 11 semi-annually thereafter on each August 1 and Februax 1 while this bond
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is outstanding. The principal of this bond and the interest coupons
attached hereto shall be payable to bearer, in lawful money of the United
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States of America, without exchange or collection charges to the bearer,
upon presentation and surrender of this bond or proper interest coupon,
nd
at the City National Bank, Wichita Falls, Texas, or, at the
option of the bearer, at the Chase Manhattan Bank,
New York, which places shall be the paying agents for this Series of bonds.
@� s
This bond is one of a Series of coupon bonds dated August 1, 1963,
E issued in the principal amount of $5,585,000 for the purpose of refunding
the outstanding City of Wichita Falls Water Revenue Bonds and Sewer Reve-
nue Bonds, aggregating $2,560,000 and providing $525,000 for improving
fz and extending the City's Waterworks System, and providing $2,500,000 for
improving and extending the City's Sewer System. In addition to all
other rights, the holders of this Series of bonds shall be subrogated; to
,■ all pertinent and necessary rights of the holders of the obligations being
7t
E refunded thereby.
The bonds of this Series of bonds scheduled to mature on and
after February 1, 1979, may be redeemed prior to their scheduled maturities, ` G
f in whole, or in part at the option of said City, on August 1, 1978, or
on any interest payment date thereafter, for the principal amount thereof
plus accrued interest to the date fixed for redemption. At least thirty
1 days before the date fixed for any such redemption the City shall cause a
written notice of such redemption to be published at least once in a fi-
nancial publication published in the City of New York, New York, By the
date fixed for any such redemption, due provision shall be made with the
paying agents for the payment of the principal amount of the bonds to be
redeemed, plus accrued interest thereon to the date fixed for redemption.
If the written notice of redemption is published, and if due provision
for such payment is made, all as provided above, the bonds, which are to
be so redeemed, thereby automatically shall be redeemed prior to maturity,
and they shall not bear interest after the date fixed for redemption, and
shall not be regarded as being outstanding except for the purpose of
receiving the funds so
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g provided for such payment. ?,
It is hereby certified and recited that this bond has been duly
and validly voted, authorized, issued, and delivered in accordance with
^
the Constitution and laws of the State of Texas; and that the interest on
and principal of this bond, and the Series of which it is a part, are se-
cured by and payable from a first lien on and pledge of the Net Revenues
of the Waterworks and Sewer System of said City, which liens and pledges
are subject only to a prior first charge on said Net Revenues, in the
y ,
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, g event that the same should become necessary, in favor of the outstanding
City of Wichita Falls First Mortgage Waterworks System Revenue Improve-
sa went Bonds, Series 2, dated May 1, 1944, City of Wichita Falls First
yl
HMortgage Waterworks Revenue Bonds, Series 1947, dated June 1, 1947 and
City of Wichita Falls, Texas, Sewer Revenue Bonds, Series 1949, dated
December 1, 1949, being refunded hereby, money for the full payment,
retirement, and redemption of which, including all necessary principal,
ur interest and aying agent charges has been deposited in accordance with
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law with the State Treasurer of the State of Texas. The aforesaid Series
1944 and Series 1947 outstanding bonds have been duly called for redemp
tion prior to maturity on April 1, 1964 and the aforesaid Series 1949
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outstanding bonds which mature after December 1, 1964, have been duly called
; for redemption prior to maturity on that date.
11 Said City has reserved the right, subject to the restrictions
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stated in the ordinance authorizing this Series of bonds, to issue addi-
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tional revenue bonds which may be secured by and made payable from the
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same revenues as, and be on a parity and of equal dignity in all respects
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with, this Series of bonds.
, The holder hereof shall never have the right to demand payment of
this obligation out of any funds raised or to be raised by taxation.
, In witness whereof, this bond and the interest coupons attached
hereto have been signed by the imprinted or lithographed facsimile sig-
nature of the Mayor of said City and countersigned by the imprinted or
lithographed facsimile signature of the City Clerk of said City, and the
official seal of said City has been duly impressed, or printed, or litho
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graphed on this bond.
H COUNTERSIGNED:
3 City Clerk, City of Wichita Falls Mayor, City of Wichita Falls
(FORM OF REGISTRATION)
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COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NOS
I hereby certify that this bond has been examined, certified as to
,F validity, and approved by the Attorney General of the State of Texas; and
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F that this bond has been registered by the Comptroller of Public Accounts
', of the State of Texas
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d Witness my signature and seal this
Comptroller of Public Accounts of the
State of Texas
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(FORM OF INTEREST COUPON)
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On , 199, the City of Wichita Falls, in the
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County of Wichita, State of Texas, promises to pay to bearer, unless due
provision has been made for the redemption prior to maturity of the bond
to which this interest coupon is attached, the amount of a
Dollars, in lawful money of the United States of America, without exchange
or collection charges to the bearer, upon presentation and surrender of
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this interest coupon, at the City National Bank,
Wichita Falls, Texas, or, at the option of the bearer, at the Chase
s Manhattan Bank, New York, said amount being interest
due that day on the bond, bearing the number hereinafter designated, of
that issue of City of Wichita Falls Water and Sewer Revenue Bonds, Series
1963, dated August 1, 1963. The holder hereof shall never have the right
0. to demand payment of this obligation out of any funds raised or to be
raised by taxation, Bond No.
City Clerk Mayor
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Section 8. DEFINITIONS. (a) The term "System" as used in this
ss ordinance, shall mean the City's entire Waterworks and Sewer System, to-
gether- with all future improvements, extensions, enlargements, and addi-
tions thereto and replacements thereof.
(b) The term "Net Revenues," as used in this ordinance, shall
mean all gross revenues of the System, after deducting 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 judg-
merit of the Board of Aldermen of said City, reasonably and fairly exer-
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cised as are necessary to keep the System in operation and render adequate
fi service to said City and the inhabitants thereof, or such as might be
,, necessary to meet some physical accident or condition which would other-
.
wise impair the Bonds and any Additional Bonds, shall be deducted in
determining "Net Revenues." Depreciation and payments into and out of
the Interest and Sinking Fund and the Reserve Fund, hereinafter created,
4 shall never be considered as expenses of operation and maintenance.
r (c) The term "Bonds" shall mean the Bonds authorized to be
issued and delivered by this Ordinance.'
a (a) The term "Additional Bonds" shall mean the additional parity
, revenue bonds which the City reserves the right to issue and deliver in
the future, as provided by this Ordinance.
Section 9. PLEDGES The Bonds and all Additional Bonds, and the
interest thereon, are and shall be payable from and secured by an irrevoca-
b ble first lien on and pledge of the Net Revenues of the System; and said
• Net Revenues are further pledged irrevocably to the establishment and
1, maintenance of the Funds hereinafter created, which liens and pledges are
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subject only to a prior first charge on said Net Revenues, in the event
that the same should become necessary, in favor of the outstanding City
of Wichita Fails First Mortgage Waterworks System Revenue Improvement
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F Bonds, Series 2, dated May 1, 1944, City of Wichita Falls First Mortgage
11 Waterworks Revenue Bonds, Series 1947, dated June 1, 1947 and City of
$" Wichita Falls, Texas, Sewer Revenue Bonds, Series 1949, dated December 1,
1949, being refunded hereby, money for the full payment, retirement, and
redemption of which the interest thereon and paying agent charges, has
been deposited in accordance with law with the State Treasurer of the
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State of Texas. The aforesaid Series 1944 and Series 1947 outstanding
bonds have been duly called for redemption prior to maturity on April 1,
• 1964; and the aforesaid Series 1949 outstanding bonds have been duly
Hcalled for redemption prior to maturity on December 1, 1964.
Section 10, RATES, The City covenants and agrees with the hold-
.
ers of the Bonds and all Additional Bonds, as follows:
} (a) That it will at all times fix, maintain, charge, and collect
• for services rendered by the System, rates and charges which will produce
gross revenues at least sufficient to pay all expenses of operation and
maintenance, and to provide Net Revenues adequate to pay promptly all of
the principal of and interest on the Bonds and all Additional Bonds, and
to make all deposits now or hereafter required to be made into the Funds
created and established by this Ordinance.
4
(b) If the System should become legally liable for any other
obligations or indebtedness, the City shall fix, maintain, charge and
• collect additional rates and charges for services rendered by the System
sufficient to establish and maintain funds for the payment thereof,
a� s
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Section 11. FUNDS. All revenues of the System shall be kept
separate and apart from all other funds of the City, and the following
special Funds are hereby created and shall be established and maintained
x in the City's depository bank, so long as any of the Bonds and Additional
Bonds, or interest thereon, are outstanding and unpaid:•
• �� •
(a ) •City. of Wichita Falls Water and Sewer Revenue Fund, hereinafter
called the "Revenue Fund;"
i (b) City of Wichita Falls Water and Sewer Revenue Bonds Inter-
' 10 est and Sinking Fund, hereinafter called the "Interest and Sinking Fund;"
1 (c) City of Wichita Falls Water and Sewer Revenue Bonds Reserve
Fund, hereinafter called the "Reserve Fund."
Section 12. REVENUE FUND, All gross revenues of every nature
received from the operation and ownership of the System shall be deposited
from day to day as collected into the Revenue Fund, and the reasonable,
b •
necessary, and proper expenses of operation and maintenance of the System
shall be paid from the Revenue Fund upon approval by the Board of Aldermen
The revenues of the System not actually required to pay said expenses
H shall be deposited from the Revenue Fund into the other Funds created by
this Ordinance, in the manner and amounts hereinafter provided, and each
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of such Funds shall have priority as to such deposits in the order in
which they are treated in the following sections.
it
Section 13. INTEREST AND SINKING FUND. There shall be•deposited
A into the Interest and Sinking Fund such amounts, in equal monthly install_
r merits, made on or before the 15th day of each month hereafter, as will be /
sufficient to pay the principal and interest scheduled to come due on the ,'
3 Bonds on the next principal and interest payment date. The Interest and
1; pay principal g Sinking Fund shall be used to a the rind al of and interest on the
s
q Bonds and all Additional Bonds, as such principal matures and such interest
i1
`'comes due.
4l
11 Section 14. RESERVE FUND. On or before the 15th day of each
month beginning August 15, 1963, there shall be deposited into the Reserve
Fund the sum of at least $5,500.00, until the aggregate amount of
Y33
0 •000.00 shall have been accumulated in the Reserve Fund. No deposits
shall be required to be made into the Reserve Fund as long as the Reserve
to Fund shall contain said aggregate amount, but if and whenever said Reserve
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Fund is reduced below said aggregate amount, the aforesaid monthly de-
posits into the Reserve Fund shall be resumed and continued until such
ur �
time as the Reserve Fund has been restored in said aggregate amount. The
Reserve Fund shall be used to pay the principal of or interest on the
r Bonds and all Additional Bonds, at any time when there is not sufficient
y money available in the Interest and Sinking Fund for such purpose.
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Money in the Reserve Fund may, upon authorization by the Board of Alder-
men, be invested in direct obligations of, or obligations, the principal
of and interest on which are guaranteed by, the United States of America,
ry or invested in direct obligations of the Federal Intermediate Credit
dg ,
4 Banks, Federal Land Banks, Federal National Mortgage Association, Federal
Home Loan Banks or Banks for Cooperatives, provided that each of the
4 aforesaid obligations must mature, or be subject to redemption at the
option of the holder thereof, within not more than ten years from the
)1, date of the making of such investment. Any obligation in which money in
'11, the Reserve Fund is so invested shall be kept and held in the depository
i41 bank of the City in escrow and in trust for the benefit of the holders
P of the Bonds and all Additional Bonds, and shall be promptly sold and
{ the proceeds of sale applied to the making of all payments required to
be made from the Reserve Fund.
Section 15. DEFICIENCIES IN FUNDS. If in any month the City
4 rz shall fail to deposit into any Fund created by this Ordinance the full
"
amounts required, amounts equivalent to such deficiencies shall be set
4
apart and paid into said Funds from the first available and unallocated
Net Revenues of the following month or months, and such payments� , p shall
be in addition to the amounts otherwise required to be paid into said
f
Funds during such month or months. To the extent necessary, the City
shall increase the rates and charges for services of the System to make
4 up for any such deficiencies.
9
Section 16. EXCESS REVENUES. The Net Revenues of the System, in
excess of those necessary to establish and maintain the Funds as required
in this Ordinance, or as hereafter may be required in connection with the
14 issuance of Additional Bonds, may be used for any purpose now or hereafter
1
authorized by law.
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Section 17. SECURITY FOR FUNDS. All Funds created by this
- • ,
Ordinance shall be secured in the manner and to the fullest extent per-
.
mitted or required by law for the security of public funds, and such
Funds shall be used only for the purposes and in the manner permitted or
required by this Ordinance.
d Section 18. ADDITIONAL BONDS. The City reserves the right to
issue additional parity revenue bonds, to be known as Additional Bonds,
which when issued and delivered, shall be payable from and secured by a
first lien on and pledge of the Net Revenues of the System, in the same
manner and to the same extent as the Bonds; and the Bonds and all Addl.-
tional Bonds shall in all respects be on a parity and of equal dignity.
The Additional Bonds may be issued, in one or more installments or series,
provided, however, that no installment or series of Additional Bonds
r shall be issued unless:
(a) A certificate is executed by the Mayor and City Clerk of
said City to the effect that no default exists in connection with any
of the covenants or requirements of the ordinance or ordinances authorizing
f' the issuance of all then outstanding Bonds and Additional Bonds;
4
(b) A certificate is executed by the Mayor and City Clerk of
said City to the effect that the Interest and Sinking Fund and the Re-
d
'f serve Fund each contains the amount then required to be on deposit
therein;
(c) A certificate is executed by a Certified Public Accountant to
the effect that, in his opinion the Net Earnings of the System for the
.1 last fiscal year, or for any twelve consecutive calendar month period
ending not more than ninety days prior to the passage of the ordinance
r authorizing the issuance of such Additional Bonds:
(1) were at least one and one-half (1-1/2) times the
average annual principal and interest requirements for all
then outstanding Bonds and Additional Bonds, and for the
• series of Additional Bonds then proposed to be issued; and
(2) were at least one and one-fourth (1-1/4) times the
principal and interest requirements for all then outstanding
Bonds and Additional Bonds, and for the series of Additional
Bonds then proposed to be issued during the year when such
V requirements are scheduled to be the greatest.
f,
The term "Net Earnings," as used in this sub-paragraph (c) shall mean
the Net Revenues of the System, but not deducting any charges which,
gi
under standard accounting practice, should be charged to capital expen-
ditures;
(d) The Additional Bonds are made to mature on February 1 or
August 1, or both in each of the years in which they are scheduled to
mature;
(e) The ordinance authorizir; the issuance of such installment
or series of Additional Bonds shall provide that the aggregate amount to
be accumulated and maintained in the Reserve Fund shall be increased by
an additional amount not less than the average annual principal and
interest requirements for said Additional Bonds, and that such additional
,F
amount shall be so accumulated within sixty-one months from the date of
s
the Additional Bonds, by the deposit in the Reserve Fund of the necessary
sums in equal monthly installments; provided, however, that the aggregate
E, e
amount to be accumulated in the Reserve Fund shall never be required to
exceed the average annual principal and interest requirements for all
then outstanding Bonds and Additional Bonds;
(f) All calculations of average annual principal and interest
9, O p
0 requirements made pursuant to this Section shall be made as of and from
the date of the Additional Bonds then proposed to be issued.
Section 19. MAINTENANCE AND OPERATION; INSURANCE. While any of
the Bonds or Additional Bonds are outstanding the City covenants and
agrees to maintain the System in good condition and operate the same in
an efficient manner and at reasonable expense, and to maintain insurance
on the System, for the benefit of the holder or holders of the Bonds and
r a
Additional Bonds, of a kind and in an amount which usually would be car-
E
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vied by private companies engaged in a similar type of business. Nothing
in this Ordinance shall be construed as requiring the City to expend any
funds which are derived from sources other than the System, but nothing
i$ herein shall be construed as preventing the City from doing so.
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Section 20. ACCOUNTS AND FISCAL 13AR. The City shall keep proper
dbooks of records and accounts, separate from all other records and accounts
of the City in which complete and correct entries shall be made of all
6
transactions, relating to the System, and shall have said books audited
once each fiscal year by a Certified Public Accountant. The City agrees
to operate the System and keep its books of records and accounts pertain
ing thereto on the basis of its current fiscal year; provided, however,
that the Board of Aldermen may change such fiscal year by ordinance duly
passed, if sueh change is deemed necessary by the Board of Aldermen.
Section 21. ACCOUNTING REPORTS. Within ninety days after the
year hereafter, the City will furnish without cost
� close of each fiscal , y ,
to any holder of any outstanding bonds or Additional Bonds who may so
request, a signed or certified copy of a report by a Certified Public
Accountant, covering the next preceding fiscal year, showing the following
9
information:
(a) A detailed statement of all gross revenues of the System
and all expenses of operation and maintenance thereof for said
fiscal year;
s (b) Balance sheet as of the end of said fiscal year;
0 (c) Accountant's comment regarding the manner in which the
City has complied with the requirements of this Ordinance and
his recommendations, if any, for any changes or improvements
� f
in the operation of the System;
(d) List of insurance policies in force at the end of said
fiscal year, showing, as to each policy, the risk covered,
ir the amount of the policy, the name of the insurer, and the
expiration date;
(e) The number of properties connected with the Waterworks
System and the Sewer System, and the gross revenues from each
pi of said systems for said fiscal year;
� erect customers of the WaterV�orks System
Baer of et
(f) The number unm y
3
at the end of said fiscal year;
pp@ (g) The approximate number of gallons of water registered
Hthrough the City's meters, and the number of gallons sold
during said fiscal year.
fl
�� s
Section 22. INSPECTION, Any holder or holders of any Bonds or
ti
Additional Bonds shall have the right at all reasonable times to inspect
the System and all records, accounts, and data of the City relating
thereto.
Section 23. SPECIAL COVENANTS. The City further covenants as
follows:
(a) That other than for the payment of the Bonds herein author-
ized, the revenues and income of the System have not in any manner been
pledged to the payment of any debt or obligation of the City or of the
System.
(b) That while any of the Bonds or Additional Bonds or interest
thereon are outstanding and unpaid, the City will not sell or encumber
the System or any substantial part thereof, and that, with the exception
of the Additional Bonds expressly permitted by this Ordinance to be
issued, it will not encumber the revenues and income of the System, unless
such encumbrance is made Junior and subordinate in all respects to the
Bonds and Additional Bonds and all liens and pledges in connection there-
with.
(c) That no free service of the System shall be allowed, and
I P
should the City or any of its agencies or instrumentalities make use of
the services and facilities of the System, payment of the reasonable value
thereof shall be made by the City out of funds from sources other than
the revenues and income of the System.
(d) That to, the extent it legally may, the City further covenants
and-agrees, that while any of. the Bonds or Additional Bonds or interest
thereon, are outstanding and. enpaid, no franchise shall be granted for the
installation..or operation. of any competing Waterworks System or Sewer
4 �
System; and that the City will prohibit the operation of any such compet-
ing system; and. the operation of any such competing system is hereby
prohibited
Section 24, BONS ARE SPECIAL OBLIGATIONS. The Bonds and Addi-
tional Bids shall be spe cial obli gations of the City payable solely from
the pledged Net Revenues, and the holder or holders thereof shall never
have the right to demand payment thereof out of funds raised or to be
raised._by taxation,
i 3334
3I
Section 25. APPROVAL AND REGISTRATION OF BONDS. That the Mayor
I q
of said City is hereby authorized to have control of said Bonds and all
`; necessary records and proceedings pertaining to said Bonds pending their
delivery and their investigation, examination, and approval by the
i3
s Attorney General of the State of Texas, and their registration by the
i Comptroller of Public Accounts of the State of Texas. Upon registration
of said Bonds, said Comptroller of Public Accounts (or a deputy designated
r. #
in writing to act for said Comptroller) shall manually sign the Compt-
p
roller's Registration Certificate prescribed herein to be printed and
s endorsed on each Bond, and the seal of said Comptroller shall be impressed,
�e g
or printed, or lithographed on each of said Bonds.
Vt
6
Section 26. SALE OF BONDS. That all of said Bonds are hereby sold,
EJ
in accordance with law, and shall be delivered to First Southwest ,
sz Company, Dallas, Texas, and Associates
e
for the principal amount thereof and accrued interest to the date of deliver
h am
P p Y,
6£plus a premium of $ lt177.77 From the proceeds of the sale of said
E#Bonds, and other funds now on hand and lawfully available for such purpose,
l there shall be deposited with the State Treasurer of the State of Texas, the
,a r
, amount of money necessary under Vernon?a Article 1118n-5 and House Bill 622
€°enacted by the 58th Legislature, Regular Session, to accomplish the refunding
,provided for herein. In addition to all other rights, the holders of the
;Bonds shall be subrogated to all pertinent and necessary g ri hts of the S
y{
holders of said obligations being refunded.
_ r
PASSED AND APPROVED this the 1 t day of Aug st, •3.
q ` Q ,
M.:yoi, City of ita Falls, Texas.
°4ATTEST:
1,City Clerk, City of Wichita Falls, Texas.
t= 19 If
h
j
j
s THE STATE OF TEXAS
B! COUNTY OF WICHITA
CITY OF WICHITA FALLS
Pj I, the undersigned, City Clerk of the City of Wichita
,,
H Falls, Texas, do, hereby certify that the above and foregoing is a true
and correct copy of an ordinance passed by the Board of Aldermen (and
of the minutes pertaining thereto) on the 1st day of August, 1963,
0 authorizing the issuance of $5,585,000 City of Wichita Falls Water
and Sewer Revenue Bonds, Series 1963, as the same appears of record
il
k in the minutes of said Board of Aldermen.
EXECUTED UNDER MY HAND and seal of said City, this the
it 1st day of August, 1963.
/
City Clerk, City of Wichita Falls,
Texas.
i � G
E (SEAL)
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