Ord 1509 12/12/1949ORDINANCES NOS. 1508 & 1509 =-
COVERING :30ND ISSUE VOTED 12-6-49
IN MR. HENDEF.SON' S BOND FOLDER
IN LETTER FILE
r
ORDINANCE NO. 1509
AN ORDINANCE BY THE BOARD OF ALDERI,1EV OF THE CITY OF .%TICHITA FALLS,
TLUS, PROVIDING FOR THE ISSUANCE OF CITY OF .J'ICHITA FALLS, TEXAS, 60-1111 REVENUE
BONDS, SERIES 19492 IN THE AGGREGATE AMOUNT OF NINE HUNDRED THOUSAND ($900..000.00)
DOLLARS, BEARING INT11MEST AT THE RATES HEREINAFTER SET FORTH, TO SECURE FUNDS
FOR THE ?URPOSE OF CON67HUCTING, REPAIRING, IMPRO"VLNG AND EXT&ZING THE SANITARY
SETTERS OF aAID CITY; PRESCRIBING THE FORT OF BOND; PL::DGING THE REVENUES OF THE
CITY'S SE'V.TER SYSTEM TO THE PAY1,04T OF THE PRINCIPAL AND INTrEREST OF SAID BONDS;
PROVIDING FOR THE EXPENSE OF OPERATING SAID SYSMI; MAKING CERTAIN COVENANTS OF
THE CITY. IN REFERENCE TO THE BONDS AND THE BOND FUND FROM .1HICH SAID PRINCIPAL
AND INTE'R.EST ARE TO BE PAID; PROVIDING THAT THE HOLDER OR HOLDERS OF SAID BONDS
SHALL NEVER HAVE THE RIGHT TO DE?,IAND PMENT .OF SAID OBLIGATIONS OUT OF ANY
FUNDS RAISED OR TO BE RAISED BY TAXATION, REPLALING ALL ORDINANCES IN CONFLICT
HEREtdITH, AND DECLARING AN E14ERGENCY.
WHEREAS, the Board of Aldermen of the City of Wichita Falls, Texas,
has heretofore determined that it is to the best interest of the City and of
its inhabitants that it issue revenue bonds of said City for the purpose of con-
structing, repairing, improving and extending the sanitary sewers of said City;
and
VEISREAS, pursuant to such determination, the Board of Aldermen of the
City of Wichita Falls adopted a resolution on November 149 1949, calling an
election on the following proposition:
"Shall the board of Aldermen of the City of Wichita
Falls, Texas, be authorized to issue the ponds of said City
in the amount of $900,000.00, maturing serially in such in-
stallments as may be fixed by the Board of Aldermen, the
maximum maturity being not more than 'Nenty Five (25) years
from their date, bearing interest at a rate not to exceed
Three and one-half (32) per cent per annum, for the purpose_,
of constructing, repairing, improving and extending the
sanitary sewers of said City, to be issued in accordance
with and secured in the manner provided in Articles 1111-
1118, both inclusive, of the Revised Civil Statutes of
Texas, 1925, as amended, each bond to be conditioned that
the holder thereof shall never have the right to demand pay-
ment of said obligation out of funds raised or to be raised
by taxation, secured by a pledge of the net revenues from
the operation of said system."
and
,1fiEf�EAS, at the election held in said City on the 6th day of December,
1949, a majority of the resident, qualified electors owning taxable property in
said City, and who had duly rendered the same for taxation, voting at said
election sustained the proposition to issue the bonds hereinafter described by
the following ,vote:
"FOR THE ISSUANCE OF SE:a'ER REVENUE BONDS" 3618 Votes;
"AGAINST THE ISSUANCE OF SEATER REVENUE BONDS" 1042 Votes;
and
;MEREAS, the City has authority, generally, to pass this ordinance
authorizing the issuance of revenue bonds for the purpose of constructing,
repairing, improving and extending the sanitary sewers of said City, under the
Constitution and Statutes of the State of Texas, including particulary Articles
1111 to 11182 both inclusive, of the 1925 Revised Civil Statutes of Texas, as
amended, and Chapter 163, Acta of the Regular Session of the Forty Second
Legislature, as amended; and
Ti1H1_AtL' AS, it is now necessary and proper that the board of Aldermen proceed
with the issuance of such revenue bonds;
BE IT ORDAINED HY THE BOARD OF ALDER104 OF TIE CITY OF ^'ICHITA FALLS,
TEXAS:
1. That to provide funds for the purpose of constructing, repairing,
improving and extending the sanitary sewers of said City, particularly Articles
Con-
stitution and Statutes of the State of Texas, including pa
1111-1118, both inclusive, of the 1925 Revised Civil Statutes of Texas, as amended,
and Chapted 163, Acts of the Regular Session of the Forty Second Legislature, of
Texas, as amended, there shall be issued "City of Ts1ichita Falls, Texas, Sewer
Revenue Bonds, Series 1949", aggregating Nine Hundred Thousand ($gOO,000000)
Dollars numbered from One (1) to Nine Hundred (900), both inclusive, of the
denomination of One Thousand ($1,000.00) Dollars each.
2. That said bonds shall be dated December 1, 1949, and shall bear
interest at the rates as follows:
Bonds Nos. 1 to 375, both incl., 314% perannum;
It If
Bonds Nos. 376 to 900, per annum'
payable June 1, 1950, and semi-annually thereafter on December is t and June 1st
of each year.
3. That the principal and interest of said bonds ahll be payable in
lawful money of the United States upon presentation and surrender of bond or
proper coupon at The Harris Trust and Savings Flank, Chicago, Illinois, or, at
the option of the holder, at the Mercantile National Bank at Dallas, Dallas,
Texas, and they shall mature as follows:
BOND
NUMBS
MATURITY
DATES
AMOUNTS
1
to
20,
both incl.,
December
1,
1950,
20,000.00
20,000.00
21
to
to
40
653
" "
December
December
1,
1,
1951,
1952,
25,000.00
41
66
to
90
" "
December
December
1,
1,
1953,
1954,
25 000.00
�
25,000.00
91
191 145
to
to
115,
15,
"
" "
December
1,
1955,
30,000.00
1 6
to
1,
" it
December
December
1,
1,
1956)
1957,
30,000.00
30,000.00
146
2 06
to
to
205,
235,
`' "
December
1,
1958,
30,000.00
26
to
270
" "
�►
December
December
1,
1,
1959,
1960,
35,000.00
3 5, 000.00
271
306
to
to
305,
340,
„
December
1,
1,
1961,
1962,
35,000.00
35,000.00
341
to
375,
December
December
1,
1963,
35,000.00
376
4
to
to
410,
450,
'I ��
December
1,
1,
1964,
1965,
40,000.00
40,000.00
451 1
to
490,
December
December
11
1966,
40,000.00
531
531
to
to
530,
��
December
1,
11
1967,
1968,
40,000.00
45)000.00
616
to
615,
615,
�� „
December
December
1,
1969,
45,000.00
661
661
to
to
705,
705,
��
December
1,
1970,
45,000•00
45,000.00
706
to
750,
�
December
December
1,
1,
1971,
1972,
50,000.00
751
801
to
to
800,
850,
December
1,
1973,
50,000.00
50 000.00
851
to
900,
December
1,
1974,
4. The City reserves the option of
inclusivengonbonds
Decemberel, 1964�Four Hu�dornd
Fifty One (451) to Nine Hundred (900),
any interest payment date thereafter at a price of par and accrued interest to
date fixed for redemption. Notice of such redemption is to be published in a
financial publication in the City of Chicago, State of Illinois, and in the official
newspaper of the City oWichita
fFalls,
demptionaandleast
thirtyonce
(3Q)not
dayssnoti e ins than lay
(30) days before the dateixed for redemption,
writing is to be given to the banks of payment before the date so fixed for
redemption. If by the date fixed for redemption funds sufficient to pay the
bonds called and accrued interest thereon shall be placed in one of the banks
of payment to be designated in the notice, they shall not thereafter bear
interest. In the event less than all of the bonds outstanding and eligible
for prior redemption shall be thus called the bonds then proposed to be
redeemed shall be called in the inverse order of their maturities, and if less
than all outstanding bonds of a maturity are called, the bonds of such maturity
shall be called by lot.
5. Each of said bonds shall be signed by the Mayor and countersigned
by the City Clerk, and the corporate seal of the City of Wichita Falls shall be
impressed upon each of them. The facsimile signatures of the Mayor and City
Clerk may be lithographed or printed upon the coupons attached to said bonds
and shall have the same effect as if they had been signed by said persons.
6. That said bonds shall constitute special obligations of -the City
of 1.1ichita Falls and each of said bonds shall contain the provision that the
holder hereof shall never have the right to demand payment of said obligation
out of any funds raised or to be raised by taxation.
7. The form of said bonds Ehall be substantially as follows:
NO. s1,000.00
UNITED STATES OF A11ERICA
STATE OF TEXAS
COUNTY OF NICHITA
CITY Or' 1ICHITA FALLS
SE;1ER REVENUE BOND
SERIES 1949
The City of :•dichita Falls, in the County of Wichita, State of Texas,
a municipal corporation duly incorporated under the laws of the State of Texas,
for value received, hereby acknowledges itself indebted to and promises to pay
to the bearer hereof on the lst day of December, 19,_1 the sum of
ONE THOUSAND DOLLARS
in lawful money of the United States of America, with interest thereon from the
date hereof at the rate of ()per cent per annum, payaole June 1, 1950, and semi-
annually thereafter on December lst and June lst of each year. Interest shall oe
payable in lawful money of the United States of America, upon presentation and
surrender of proper coupons as they severally become due, both principal and
interest being payable at the Harris Trust and oJavings Bank, Chicago, Illinois,
or, at the option of the holder, at the Mercantile National Bank at Dallas, Dallas,
Texas.
This bond is one of a series of bonds of like tenor and effect, except
as to number, interest rate, maturity and right of prior redemption, numbered
One (1) to Nine Hundred (900), both inclusive, of the denomination of One Thousand
($1,000.00) Dollars each, aggregating Nine Hundred Thousand ($900,000.00) Dollars,
issued by the City of Wichita Falls, Texas, for the purpose of constructing,
repairing, improving and extending the sanitary sewers of said City, in accordance
with the Constitution and laws of the State of Texas, and pursuant to an ordinance
passed by the Hoard of Aldermen duly recorded in the minutes of said Board of
Aldermen.
The date of this bond in conformity with the ordinance above mentioned
is December 1, 1949.
*-A(The City reserves the option of redeeming this bond on December 1,
1969, or on any interest payment date thereafter at a price of par and accrued
interest to date fixed for redemption. Notice of such redemption is to be
published in a financial.publication in the City of Chicago, State of Illinois,
and in the official newspaper of the City of Wichita Falls, Texas, at least once
not less than thirty (30) days before the date fixed for redemption, and thirty
(30) days notice in writing is to be given to the banks of payment before the
date so fixed for redemption. If by the date fixed for redemption, funds suffi-
cient to pay this bond and accrued interest thereon shall have been placed in one
of the banks of payment, to be designated in the notice, it shall not thereafter
bear interest. In the event less than all of the bonds outstanding and eligible
for prior redemption shall be thus called the bonds then proposed to be redeemed
shall be called in the inverse order of their maturities and if less than all
outstanding bonds of a maturity are called, the bonds of.such maturity shall be
called by lot.)
This bond and the series of which it is a part constitute special obli-
gations of the City of Wichita Falls, Texas, payable both as to principal and
interest from and secured by a first lien on and pledge of the revenues of the
Sewer System, after deduction of reasonable operation and maintenance expenses,
including all salaries, labor, materials, repairs and extensions necessary to
render efficient service. 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.
AND IT IS HEREBY CERTIFIED AND RECITED that the issuance of this bond
and the series of which it is a part, is duly authorized by law and by a majority
of the resident, qualified electors owning taxable property in said City, and who
have duly rendered the same for taxation, voting at an election held for that
purpose within said City on the 6th day of December, 1949; that all acts, condi-
tions and things required to exist precedent to and in the issuance of this bond
to render the same lawful and valid have been properly done, have happened and
been performed in regular and due time, form and manner as required by the Con-
stitution and laws of the State of Texas, the Charter of said City and the ordi-
nance hereinabove mentioned, and that this series of revenue bonds does not exceed
any constitutional, statutory or charter limitations and that provision has been
made for the payment of the principal and interest of this bond and the series
of which it is a part by irrevocably pledging to the payment thereof the net
revenues of said sewer system of the City of ,lichita Falls.
IN TESTIMONY A'HEREOF, the Board of Aldermen of the City of 1•Jichita
Falls, Texas, has caused the seal of said City to be impressed hereon and this
bond to be signed by the Mayor and countersigned by the City Clerk, and has
caused the annexed coupons to be signed by the lithographed or printed facsimile
signatures of the Mayor and City Clerk.
Harold Jones
Mayor, City of Wichita Falls, Texas
COUNTERSIGNED:
Geo. T. Henderson
City Clerk, City of Wichita Falls, Texas
*(Bonds Nos. 1 to 375, both incl., 34% per annum;
Bonds Nos. 376 to 900, " it 2 3/4% per annum.)
(This paragraph should be omitted from Bonds Nos. 1 to 450, both Incl.)
NO.
g. The form of said coupons shall be substantially as follows:
ON THE 13T DAY OF
w
,19
The City of Wichita Falls, Texas, out of revenues specified in the bond
to which this coupon is attached, will pay to the bearer *(unless the bond to
which this coupon is attached shall have been called for previous redemption as
therein provided and provision for the redemption thereof made), at the Harris
Trust and Savings Bank, Chicago, Illinois, or, at the option of the holder, at
the Mercantile National Bank at Dallas, Dallas, Texas, the sum of _
($ ) Dollars in lawful money of the United States of America, said sum
being month's interest due that day on "City of Jichita Falls, Texas,
Sewer Revenue Bond, Series 194911, bearing the number hereinafter specified,
dated December 1, 1949. The holder hereof shall never have the right to demand
payment of this obligation out of funds raised or to be raised by taxation,
Bond No. .
Geo. T. Henderson
City Clerk
Harold Jones
Mayor
*(This parenthetical expression should be printed only in coupons maturing
June 1, 1965, and subsequent).
9. The form of Comptroller's certificate, which shall be printed on
the back of each bond shall be substantially as follows:
OFFICE OF COMPTROLLER 0
STATE OF TEXAS D
I HEREBY CERTIFY That there is on file and of record in my office a
certificate of the Attorney General of the State of Texas to the effect that
this bond has been examined by him as required by law, and that he finds that
it has been issued in conformity with the Constitution and laws of the State
of Texas, and charter of said City, and that it is a valid and binding special
obligation of said City of Wichita Falls, Texas, payable from the revenues
pledged to its payment by and in the ordinance authorizing same and said bond
has this day been registered by me.
T,jIMI SS MY HAND and seal of office at Austin, Texas,
Comptroller of Public Accounts of the
State of Texas.
(SEAL)
10. After the bonds have been executed by the City Officials as
hereinabove provided, they shall be presented to the Attorney General of the
State of Texas for examination and approval. After the bonds have been ap-
proved by the Attorney General, they shall be registered by the Comptroller
of Public Accounts of the State of Texas.
11. All properties of every nature now or hereafter while any of
the bonds of this issue remain outstanding, owned by the City and used or use-
ful in the operation of its sewer system, including real estate, personal and
intangible properties, whether lying within or without the boundaries of the
City, and including all improvements, additions and extensions which may be
made to said properties are in this ordinance referred to as the "System".
The term "net revenues" shall mean the gross revenues from the System
minus the expenses of operation and maintenance thereof, including all salaries,
labor, materials, interest, repairs and extensions necessary to render efficient
service and every proper item of expense, including such items required by
Article 1113 of the Revised Civil Statutes of 1913, as amended; and where used
in this ordinance the term "operation and maintenance" shall include all such
items.
The term Bonds or "bonds", as used herein, shall mean any of the issue
of revenue bonds aggregating $900,000.00 authorized in this ordinance.
12. Said "City of Wichita Falls, Texas, Sewer Revenue Bonds", are
payable from and secured by a first lien upon and pledge of the Net Revenues
of said System.
SPECIAL COVENANTS AS TO BATES AND FUNDS
13. The Board of Aldermen hereby covenants andagrees that it will, at
all times while any of the Bonds, or any interest thereon, are outstanding and
unpaid, charge and collect for services rendered by said System rates sufficient
to pay all maintenance, depreciation, replacement, uetterment and interest charges
and to provide an Interest and Sinking Fund sufficient to pay the interest and
principal of the bonds as such interest and principal mature and any outstanding
indebtedness against the System, as is required by Article 1113, Revised Civil
Statutes of Texas, as amended. For the benefit of the original purchaser, and
for the benefit of any and all subsequent holders of said Bonds, coupons or any
part thereof, and in addition to all other provisions and covenants in the laws
of the State of Texas and in this ordinance, it is expressly covenanted:
A. RATES: The City shall fix and maintain rates and collect charges
for the facilities and services afforded by the System, which will provide
revenues sufficient at all times:
(1) To pay for all operating, maintenance, depreciation, replacement
and betterment charges of the System, as required under Article 1113, Revised
Statutes of Texas as amended;
(2) To establish and maintain the Interest and Sinking Fund (including
the Reserve Account) hereinafter defined;
(3) To establish and maintain the Operating Reserve Fund (hereinafter
defined);
(4) To pay all outstanding indebtedness against the System other than the
Bonds, as and when the same becomes due.
B. USE OF REVENUES: The City will deposit as collected all revenues
derived from the operation of the System into a separate account (herein called
the "Sewer System Fund"), which shall be kept separate and apart from all other
funds of the City. The Sewer System Fund shall be administered as follows:
(1) There shall be set aside monthly in a separate account in the
Sewer System Fund to be known as the"Ma.intenance and Operation Fund", such an
amount as shall be found necessary to keep such fund at all times sufficient to
pay the reasonable expenses of operation and maintenance of the System and such
expense shall be paid out of said Fund.
(2) INTEREST AND SINKING FUi1D: There is hereby created and ordered to
be established in the Depository of the City a "Sewer Revenue Bond Interest and
Sinking Fund". From time to time as specified in this O"uusection (2), money shall
be transferred from the Sewer System Fund, after provision shall have been made
for the Maintenance and Operation Fund, to be used in paying the principal of and
interest on the Bonds. The following provisions shall remain effective so long
as any of the Bonds shall remain outstanding and unpaid: On or before January 10,
1950, and on or before the loth day of each month thereafter while any of the Bonds
are outstanding the City shall pay into said Fund an amount of money not less than
one -twelfth of the next installment of principal scheduled to mature; one -sixth
of the next semi-annual installment of interest; plus an amount equivalent to
twenty (20%) per cent of both such items, until a date when all of the following
conditions exist:
(a) There shall have been no default in the payment of any of the Bonds
or interest thereon;
(b) All of the payments required by this ordinance (hereinafter some-
times called the "Bond Ordinance") to be made into the Interest and Sinking Fund
prior to and on such date shall have been made; and
(c) There shall have been accumulated and shall exist in such Fund an
amount (herein called the "Reserve") sufficient to pay the principal and interest
scheduled to mature during the next succeeding calendar year.
1
After the one year Reserve shall have been completed and so long as
it remains intact, the monthly payments to Interest and Sinking Fund may be
made without the 20% margin requirement; but if at any time it becomes necessary
to use temporarily any part of such Reserve for the payment of principal or
l� interest, any amounts thus used shall be restored by a resumption of such
margined payments until the Reserve is again intact.
In order that sufficient funds will be available to pay the install-
ment of interest maturing June 1, 1950, and the principal maturing December 1,
1950, and to provide the 20p margined payment for the Reserve there is hereby
appropriated from revenues currently accruing from the operation of the City's
sanitary sewer system the sum of �4,700.00.
On the occasion of the passage of each ordinance authorizing the
issuance of any additional bonds of equal dignity as hereinafter permitted
(hereinafter called "Additional Bonds") proper provision shall be made therein
for payments into said Fund of money sufficient to pay the installments of
interest on and principal of such Additional Bonds, plus the twenty (20%) per
cent margin for creation of a proportionate part of the Reserve. It is the
intention of this Subsection that the same provisions for meeting the semi-
annual interest and maturities, as they fall due and a Reserve
be created
dto
secure the payment of any Additional Bonds which may spermitted
by Section 14 hereof.
The monies in the Interest and Sinking Fund shall be used solely for
the purpose of paying interest on and principal of the Bonds of this issue until
all Bonds have been retired; provided, that, when the total amount in the
Interest and Sinking Fund (including the Reserve) is equal to the aggregate
principal amount of the Bonds outstanding plus all unpaid coupons thereto
appertaining unmatured and matured, no further payments need to be made into
the Interest and Sinking Fund.
Not less than 10 days prior to each interest and principal payment
date it shall be the duty of the City to withdraw from the Interest and Sinking
Fund primarily, but, if necessary from any other Fund (except the Maintenance
and Operation Fund) established in this Section 13, moneys sufficient to pay the
interest and the installment of principal, and to forward such money to the said
banks of payment. At the same time the City shall remit to said banks of payment,
out of the Sewer System Fund, an amount sufficient to pay the charges made by
such banks for making such disbursements for payment of principal and interest.
(3) The moneys paid into the Interest and Sinking Fund shall be con-
tinuously secured by a valid pledge of direct obligations of, or obligations
unconditionally guaranteed by the United States of America, having a par value
or market value when less than par, exclusive of accrued interest, at all times
at least equal to the money deposited in the Interest and Sinking Fund. The
Reserve, at the option of the City, may be invested in direct obligations of,
or unconditionally guaranteed by, the United States of America, and deposited
in escrow under an escrow agreement, or deposited in the trust department of the
depository. If such money is so invested and the bonds deposited in escrow or
in the trust departmEn t of the depository, the City shall have the right to have
sold through the escrow agent or through the trust department of such depository
on the open market a sufficient amount of said securities in order to meet its
obligations of principal and interest in event it does not have sufficient funds
uninvested on hand for such purpose. Under such circumstances, the T;ayor is
hereby authorized, ordered and directed to give written notice to such escrow
agent or such depository bank of the necessity to sell said securities on the
open market. After such sale, the monies resulting therefrom
shall hbelong tof
the Interest and Sinking Fund and shall be available to pay g
principal or interest or both principal and interest.
In the event the Reserve is depleted in instances as provided in the
last preceding paragraph, it shall be the duty of the City to restore such
monies by resuming the monthly deposit of funds margined by 20% in excess of
actual requirements as hereinabove in this section provided.
(4) OP:IiATING RE3ERV'B FUND. The "Operating Reserve Fund" is hereby
created. Except as hereinafter provided in this Subsection (4) money in such
Fund shall be used only for extensions and replacements of and improvements to
the City's Sewer System, such as are not ordinarily co:;sidered as maintenance
and operation expenditures. Payments into such Fund shall be made and the money
in the Fund may be used in the following manner
(a) At all times money in such Fund which shall not be committed actually
under construction contracts, shall remain available and shall be used by the City
to prevent or relieve any default in the payment of the principal of or interest
on the Bonds;
(b) At any time when the Fund contains not less than 4125,000.00 not
committed under construction contracts, any money in excess thereof may, within
the discretion of the Board of Aldermen, be withdrawn for the purpose and used
for the purpose of redeeming Bonds prior to their maturity in accordance with the
redemption provisions contained in this ordinance and in the Bonds;
(c) There is hereby created and ordered to be established in the
Depository of the City a Fund to be known as the "Operating Reserve Fund". On
or before the loth day of each month after the required montly payments have been
made to the Interest and Sinking Fund, including the 20% margined for Reserve,
there shall be placed in the Operating Reserve Fund out of .the funds remaining
in the Sewer System Fund such monies as will in apprximately equal montly install-
ments accumulate in said Operating Reserve Fund within the two fiscal years next
succeeding the date of this ordinance a sum at least equal to one half of the total
operating and maintenance expenses for the previous fiscal year. It is the inten-
tion of this provision that so long as any of the Bonds or Additional Bonds are
outstanding there shall always be on deposit in said Operating Reserve Fund a sum
equal to not less than one half of the preceding year's operating and maintenance
costs. The deposits into this Fund shall be suuor-dinate to those required to be
made into the Interest and Sinking Fund. !,,henever arty money is paid out or when
for any reason said Operating Reserve Fund shall be depleted, payments into said
Fund shall be resumed and continued until such time as the minimum amount required
to be in such Fund has been fully restored.
(5) When the City is not in default in any of its obligations under
said ordinance, and after the Reserve hereinabove prescribed shall have been com-
pleted and is intact, and -when there shall be in the Operating Reserve Fund a sum
of money not less than one half of the previous year operating and maintenance
expenses, nothing in this ordinance shall prohibit the City from utilizing monies
in the Sewer System Fund in excess of all such requirements within the discretion
of the Board of Aldermen for any city purpose permitted by law.
(6) If in any fiscal year the City shall, for any reason, fail to pay
into the.Interest and Sinking Fund, including the Reserve, and the Operating
Reserve Fund the full amounts above stipulated, moneys equivalent to such
deficiencies shall be paid into said Funds from the first available and un-
allocated revenues of the next fiscal year or years, and such payments shall be
in addition to the amounts hereinabove required to be paid into said Funds during
such fiscal year or years.
14. General Covenants:
The City covenants with the holders of the Bonds so long as any of the
Bonds are outstanding:
(1) The City shall not issue any other Sewer Revenue Bonds, secured by
a pledge either superior to or on a parity with the pledgesecuring the bonds of
this issue (hereinafter called "Additional Bonds") payable from the revenues of
the System, while any of the Bonds of this issue are outstanding except under
the following conditions:
(a) That such bonds shall be authorized by the qualified electors of
the City at an election held for that purpose; and
(b) That the Net Revenues of the System for each of the two completed
fiscal years next preceding the date when it is proposed to issue such Additional
Bonds have been an amount not less than 1 3/4 times the highest aggregate of
annual principal and interest requirements of the Bonds of this issue and such
Additional Bonds; and also when the annual New Revenues anticipated to be
received throughout the term of the Bonds and such Additional isonds shall be an
amount not less than 1 3/4 times the highest aggregate of annual principal and
interest requirements of the Bonds of this issue and such Additional Bonds;
(c) The proceeds of such Additional Bonds shall be used solely for
the making of renewals, replacements, improvements, betterments and extensions
of the Sewer System which are determined by the Board of Aldermen to be necessary
and economically feasible;
(d) The City shall not at the time of the issuance of such Additional
Bonds be in default of any of the provisions, requirements or covenants of this
ordinance.
(e) That the principal of the Additional Bonds shall mature on
December 1 of each of the years in which they are scheduled to mature and that
the semi-annual installments of interest shall mature on June 1 and December 1
of each such years.
Additional Bonds issued under such conditions shall be secured by a
pledge of revenues on a parity with the pledge securing the issue of bonds
authorized by this ordinance.
(2) INSURANCE: That so long as any of the bonds are outstanding the
City will maintain insurance on the insurable property of the System in amounts
and against hazards substantially in accordance with the praebice of public
corporations which own and maintain sewer systems similarly encumbered.
(3) ACCOUNTS AND PERIODIC STATEXOT: The City will install and main-
tain a complete system of records and accounts pertaining to the System in the
manner provided by Article 1113 of the Revised Civil Statutes of 1925 as
amended by Chapter 139 Acts of the Regular Session of the Forty Eighth Legis-
lature. The City shall cause an audit of the records pertaining to the System
to be made ach year by an independent auditor, and a co-y of such audit together
with a copy of the latest available operating and income statements shall be
furnished to John Nuveen and Company, 135 La Salle Street, Chicago, Illinois,
and to any holder of any of the Bonds, at the written request of such holder.
I
(4) That money in the Sewer System Fund shall be secured in the manner
prescribed by the applicable laws of the State of Texas.
(5) Inspection: Any holder or holders of 25 per centum in aggregate
principal amount of the Bonds at the time then outstanding shall have the right
at all reasonable times to inspect the System and all r ecords, accounts and
data of the City relating thereto.
(6) That nothing in this ordinance shall require the City to make any
expenditure except from money in the Sewer System Fund, but nothing herein shall
prohibit the City from doing so;
(7) That (except under conditions set forth in Subsection (1) of this
Section 14) the City will not suffer any indebtedness on a parity with or
superior to the bonds other than the Bonds of this issue to accrue against the
System, but that if the System should become liable for any other indebtedness
the Board of Aldermen will fix and maintain rates and collect charges for the
services afforded by the System sufficient to discharge any such indebtedness.
(8) That no free service of the System shall be allowed, and should
the City or any of its agencies or instrumentalities make use of the services
and facilities of the System, payment of the reasonable value thereof shall be
made by the City out of funds other than the revenues of the System.
. . .
(9) That Revenue Bonds authorized hereunder shall be special obligations
of the City, and the holder thereof shall never have the right to demand payment
thereof out of funds raised or to be raised by taxation.
(10) That it has the lawful power to pledge the revenues supporting this
issue of Bonds and has lawfully exercised said power under the Constitution and
laws of the State of Texas, and the Charter of this City, including said power
existing under Articles Jill to 1118, both inclusive, Revised Civil Statutes of
the State of Texas, with amendments thereto, Chapter 163, Acts of the Regular
Session of the Forty Second Legislature and Chapter 249, Acts of the Regular
Session of the Fifty First Legislature; that the Bonds of this issue shall be
ratably secured under said pledge of income, in such manner that one bond shall
have no preference over the other Bonds of said issue.
(11) That other than for the payment of the bonds herein provided for,
the rents, revenues and income of the said System have not in any manner been
pledged to the payment of any debt or obligation of the City or of said System.
(12) Covenant to Operate. That the City will maintain and operate the
System with all practicable efficiency while any of the bonds of this issue or
Additional bonds remain outstanding and unpaid and that it will faithfully and
punctually perform all duties with reference to the System required by the.Con-
stitution and laws of the State of Texas, and this ordinance, including the making
and collecting of reasonable and sufficient rates for services rendered by the
System and the segregation and the application of the revenues of the System as
required by the provisions of this ordinance.
(13) Retention of System. The City hereby covenants that it will not
sell, lease, or in any manner dispose of the System or any substantial part
thereof so long as any of the bonds of this issue are outstanding and unpaid;
provided that this covenant shall not be construed to prevent the disposal by
the City of property which in its judgment has become useless or whose use would
be uneconomical in connection with the System.
(14) Competing System. That so far as it legally may the City covenants
and agrees for the protection and security of the Bonds of this issue or Addi-
tional Bonds that it will not grant a franchise for the operation of any competing
sewer system so long as any of the bonds are outstanding and unpaid.
(15) That the City will cause to be rendered monthly to each customer
receiving water and sanitary sewer service a single statement, and will not
accept payment for one service without payment for the other service, and will
use its powers under existing ordinances and under all such ordinances to become
effective in the future to enforce payment to withhold service from delinquent
customers and to enforce authorized reconnection charges; further that the City
will enforce all applicable ordinances under which it may require the owners of
property to connect with and use sanitary sewer service where such service is
available to serve such properties.
15. The City Kanager and City Auditor are hereby instructed and
directed to do any and all things necessary or convenient in reference to the
installing and maintaining of a complete system of records and accounts pertain-
ing to said System and to make the monies available for the payment of the bonds
in the manner provided by Article 1113 of the Revised Civil Statutes as amended.
16. It shall be the duty of the Mayor (or attorneys acting for the
City) to submit the record of said bonds and the Bonds to the Attorney General
of the State of Texas for approval and thereafter to have the Bonds registered
by the Comptroller of the State of Texas.
17. The revenue bonds when properly executed by the City Officials,
approved by the Attorney General andregistered by the Comptroller of Public
Accounts of the State of Texas, shall be held by the Mayor of the City until
delivered to the proper purchaser or purchasers thereof. The Kayor, City
Auditor and.City Cler4,and City Treasurer are authorized and directed to do
any and all things necessary or convenient to effect delivery thereof to
purchaser.
18. The sale of the Bonds to John Nuveen and Company, Chicago,
Illinois, and associates at a price of par and accrued interest to date of
delivery plus a premium of ,2,131.39 is hereby ratified and confirmed.
19. All ordinances and resolution, and parts thereof in conflict
herewith are hereby expressly repealed insofar as they conflict herewith.
20. The fact that the City of Wichita Falls is in great need of
funds for the improvement, extension, enlargement and repair of its Sanitary
Sewer System, creates an urgency and an emergency, for the immediate
preservation of public health, peace and safety and requires that this
ordinance shall take effect immediately upon and after its passage, and it
is accordingly so ordained.
PASSED AND APPROVED this the 12th day of December, 1949.
yor, City of 'dichit Falls, Texas
COMNUEERSiWED:
City Clerk, City -of Wichita Falls, Texas
APPROYED AS TO FORM:
2
City Attorney, City of Wtichita alls, Texas