HomeMy WebLinkAboutORD 49-BBAN ORDINANCE
AUTHORIZING ISSUANCE OF CITY OF BEAUMONT, TEXAS,
WATERWORKS SYSTEM REVENUE BONDS, SERIES 1958,_ IN
THE AMOUNT OF $50, 000; PRESCRIBING THE TERMS AND
CONDITIONS THEREOF; MAKING PROVISION FOR THE
PAYMENT OF PRINCIPAL AND INTEREST THEREON; PRO-
VIDING FOR THE SALE THEREOF; AND CONTAINING OTHER
PROVISIONS RELATING TO THE SUBJECT
THE STATE OF TEXAS 1
COUNTY OF JEFFERSON I
The City Council of the City of Beaumont, Texas, convened in
regular session at the City Hall within said City on the 11th day of February,
1958, with the following members present, to wit:
Jimmie Cokinos
Paul H. Anger
Dr. G. M. Brassard
Dr. J. R. Venza
Harry B. Mason
James T. Garrard
and the following members absent, to wit:
acted:
Mayon Cokinos
Mayor
Councilman, Ward 1
Councilman, Ward 2
Councilman, Ward 3
Councilman, Ward 4
City Clerk
, when the following business was trans-
introduced an ordinance and
moved that it be adopted. The ordinance was read in full. The motion for
adoption was seconded by Councilman Anger
and carried
by the following vote: AYES: Councilmen Anger, Brassard, Venza, and
Mason, and Mayor Cokinos. NOES: None. The ordinance thus adopted
follows:
AN ORDINANCE
AUTHORIZING ISSUANCE OF $50,000 CITY OF BEAUMONT,
TEXAS, WATERWORKS SYSTEM REVENUE BONDS; PRESCRIBING
THE TERMS AND CONDITIONS THEREOF; MAKING PROVISION
FOR THE PAYMENT OF PRINCIPAL AND INTEREST THEREON;
PROVIDING FOR THE SALE THEREOF; AND CONTAINING OTHER
PROVISIONS RELATING TO THE SUBJECT.
WHEREAS, the following described bonds are payable from
the net revenues of the waterworks system of the City of Beaumont,
Texas, have heretofore been issued:
CITY OF BEAUMONT WATERWORKS REVENUE BONDS, SERIES
1956, dated September 1, 1956, numbered consecu-
tively from l to 2800, both inclusive, in the
denomination of $1,000, aggregating $2,800,000,
which bonds were approved by the Attorney General of Texas on
the 28th day of November, 1956, and registered by the Comptroller
of Public Accounts of the State of Texas on the same date under
Register No. 31453, $2,700,000 of which are presently outstanding;
WHEREAS, said $2,800,000 bonds consisted of:
$800,000 bonds for the purpose of refunding a like
principal amount of outstanding revenue bonds, and
$2,000,000 bonds for the purpose of improving and ex-
tending the City's existing waterworks system,
said $2,000,000 bonds being a first parcel or installment out of
$6,675,000 revenue bonds authorized at an election held within
said City on the 29th day of August, 1956; and
WHEREAS, it is provided in the proceedings authorizing
the issuance of said Series 1956 bonds, and in the bonds, that
the City .expressly reserves the right to issue the remaining
bonds voted at the election held August 29, 1956, and additional
bonds on a parity with said Series 1956 bonds; and
WHEREAS, the City Council wishes to authorize and sell at
this time a second parcel or installment of $50,000 bonds out of
the voted $6,675,000 bonds, said $50,000 bonds to be in all
respects on a parity with the outstanding Series 1956 bonds;
Therefore
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BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section I:
NAME, AMOUNT, PURPOSE, AND AUTHORIZATION: That the bonds of
the City of Beaumont, Texas, be issued in the principal sum of
$50,000, to be known and designated as "CITY OF BEAUMONT WATER-
WORKS SYSTEM RETIENUE BONDS, SECOND SERIES", for the purpose of
improving and extending the City's existing waterworks system,
under and in strict conformity with the Constitution and laws
of the State of Texas, particularly Articles 1111 to 1118,
both inclusive, Vernon's Texas Civil Statutes, as amended, and
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as authorized at a bond election held within said City on the
29th day of August, 1956 (said bonds constituting a parcel and
second installment out of a total of $6,675,000 bonds authorized
at said election, $2,000,000 out of said total authorized bonds
having heretofore been issued).
Section II:
DATE, NUMBERS, DENOMINATION, AMOUNT, AND MATURITY: That said
bonds shall be dated March 1, 1958, shall be numbered consecu-
tively from 1 to 50, both inclusive, shall be in the denomination
of $1,000 each, aggregating $50,000, and shall become due and
payable serially on the 1st day of September in each of the
years and in the respective amounts shown in the following
schedule, to -wit:
Bonds Nos. Maturity
1
- 10
1959
11
- 20
1960
21
- 30
1961
31
- 40
1962
41
- 50
1963
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Amount
$ 10,000
10,000
10,000
10,000
10,000
Section III:
3.01 - INTEREST RATES: That said bonds shall bear interest.at
the.rate of 1-1/4 o per annum, interest payable.September 1;11958�
and semi-annually thereafter on March lst,and September 1st of
each year until the principal sum thereof" shall have been paid.
Both principal of and interest- on said bonds shall be payable in
lawful money of the United States of America, without exchange or
collection charges to the owners or holders, at The First National
Bank of Beaumont, Beaumont, Texas, or, at the option of the holder,
at the Chase -Manhattan Bank, -New York, New York. The principal
of such bonds shall be. payable only upon, presentation and surrender .
of said bonds as they respectively become due, and interest
falling due on and prior to the respective maturity dates of the
bonds shall be payable only upon presentation and surrender of
the interest coupons attached to said bonds as such coupons
severally become -due .--- -
Section IV:
EXECUTION OF BONDS AND INTEREST COUPONS: That, in accordance,
with the provisions of Chapter 293, Acts of the 54th Legislature -
of Texas, Regular -Session, 1955 (codified in Vernon's Texas
Civil Statutes as Article 717j), each of said bonds shall be
signed by the Mayor and.countersioned by the City Clerk, by their
facsimile signatures, and the official seal of said City shall.
be impressed on.each bond. The interest coupons attached to
said- bonds shall.. also be executed -by the :.facsimil,e-,signatures_
of said Mayor and City Clerk. Said facsimile signatures, as
above provided, may be engraved, lithographed, or printed, and
shall have the same effect as if said bonds and coupons had
been signed in person by each of.said officers. The Comptroller's
I registration certificate, as provided hereafter in Section
VII of this ordinance, shall be manually subscribed.
Section V:
FORM OF BOND: That the form of said bonds shall be sub-
stantially as follows:
No.
$1,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF JEFFERSON
CITY OF BEAUMONT
WATERWORKS SYSTEM REVENUE BOND, SERIES 1958
THE CITY OF BEAUMONT, in the County of Jefferson, in
the State of Texas, FOR VALUE RECEIVED, hereby acknowledges
itself indebted to and PROMISES TO PAY TO BEARER ON THE
1ST DAY OF SEPTEMBER, 19 , solely from the special fund
hereinafter specified, the sum of
ONE THOUSAND DOLLARS
($1,000), with interest thereon from the date hereof at the
rate ofi-1/4% per annum, interest payable September 1, 1958,
and semi-annually thereafter on March lst and September lst
of each year until the principal sum hereof shall have been
paid. Both principal of and interest on this bond are
payable in .lawful money of the United States of America,
without exchange or collection charges to the owner or
holder, at The First National Bank of Beaumont, Beaumont,
Texas, or, at the option of the holder, at the Chase -Manhattan
Bank, New York, New York. The principal hereof shall be
payable only upon presentation and surrender of this bond,
and interest falling due on and prior to maturity shall
be payable only upon presentation and surrender of the
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c
interest coupons hereto attached as such coupons severally
become due.
THE DATE OF THIS BOND, in conformity with the ordinance
hereinafter mentioned, IS MARCH 1, 1958.
THIS BOND IS ONE OF A SERIES OF 50 BONDS of like date
and tenor, except as to number and maturity, being numbered
consecutively from 1 to 50, both inclusive, in the denomina-
tion of $1,000 each, AGGREGATING $50,000, and, together with
the other bonds of this series, is issued for the purpose of
improving and extending the City's existing waterworks system,
under and in strict conformity with the Constitution and laws
of the State of Texas, particularly Articles 1111 to 1118,
both inclusive, Vernon's Texas Civil Statutes, as amended,
and by authority of a vote of the duly glalified resident
electors of said City who owned taxable property within
said City and who had duly rendered the same for taxation,
at an election held within said City on the 29th day of
August, 1956, and pursuant to an ordinance duly adopted
by the City Council of said City and duly recorded in the
official minutes of said City Council. The bonds of this
series constitute a parcel and second installment out of
a total of $6,675,000 revenue bonds authorized at said
election held August 29, 1956, $2,000,000 bonds out of said
total authorized bonds having heretofore been issued as a
first installment (said $2,000,000 first installment bonds
having been combined with $800,000 revenue refunding bonds
into an issue of $2,800,000 revenue bonds: City of Beaumont
Waterworks System Revenee Bonds, Series 1956, dated
September 1, 1956).
EACH SUCCESSIVE HOLDER OF THIS BOND and each successive
holder of each of the interest coupons hereto attached is
M
. • ..� � t1-1gSZ
conclusively presumed to forego and renounce his equities in
favor of subsequent holders for value and without notice, and
to agree that this bond and each of the coupons hereto attached
may be negotiated by delivery by any person having possession
thereof, howsoever such possession may have been acquired, and
that any holder who shall have taken this bond or any of the
coupons from any person for value and without notice, thereby
has acquired absolute title thereto, free from any defenses
enforceable against any prior holder and free from all equities
and claims of ownership of any such prior holder. The City
of Beaumont and its official and fiscal agents shall not be
affected by any notice to the contrary.
THIS BOND SHALL NOT BE DEEMED TO CONSTITUTE A DEBT OF
THE CITY, OF BEAUMONT or a pledge of its faith and credit, but
shall be payable, along with the outstanding Series 1956 bonds,
as to principal and interest, solely from the revenues derived
from the operation of the waterworks system of said City, in-
cluding all additions, extensions, and improvements thereto
which may hereafter be made, after deduction of the reasonable
expenses of maintenance and operation of said system (the bonds
of this issue and the a utstanding Series 1956 bonds being in
all respects on a parity with one another). 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.
THE CITY OF BEAUMONT EXPRESSLY RESERVES THE RIGHT
TO ISSUE the remaining bonds voted at the election held
August 29, 1956, and additional bonds payable from the net
revenues of the waterworks system of the City, and such remain-
ing bends and additional bonds may be on a parity in all re-
spects with the outstanding Series 1956 bonds and the bonds of
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this issue, but only pursuant to and subject to the restrictions,
covenants, and limitations contained in the ordinance authorizing
said Series 1956 bonds and the ordinance authorizing this issue
of bonds, to which reference is hereby made for all particulars,
and to all the provisions of which ordinances the owner or holder
of this bond by the acceptance thereof exrressly assents,
IT IS HEREBY CERTIFIED, RECITED, AND REPRESENTED -drat
the issuance of this bond and the series of which it is a part is
duly authorized by law; that all acts, conditions, and things
required to exist and to be done precedent to and in the issuance
of this bond and this series of bonds to render the same lawful and
valid, have been properly done and performed, and have happened
in regular and due time, form, and manner, as required by law; that
due provision has been made for the payment of the principal of and
interest on this bond and the series of which it is a part and
the outstanding Series 1956 bonds by pledging the net revenues of
said waterworks system; _and that the issuance of this bond and
this series of bonds does not exceed any Constitutional or statutory
limitation.
IN TESTIMONY WHEREOF, the City Council of the City
of Beaumont, Texas, has caused this bond to be signed by the Mayor
of said City and -countersigned by the City Clerk, by their facsimile
signatures, has caused the corporate seal of said City to be
affixed hereto, and has caused the interest coupons hereto annexed
also to be executed by the facsimile signatures of said Mayor
and City Clerk (in accordance with the provisions of Chapter 293,
Acts of the 54th Legislature of Texas, Regular Session, 1955,
codified in Vernon's Texas Civil Statutes as Article 717j), all
as of the lst day of March, 1958.
Mayor, City of Beaumont, Texas
COUNTERSIGNED:
City Clerk, City of Beaumont, Texas
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Section VI:
FORM OF INTEREST COUPON: That the form of coupon attached to such
bonds shall be substantially as follows:
NO. $
ON THE 1ST DAY OF lg , the City of Beau-
mont, in the County of Jefferson, in the State of Texas, promises
to pay to bearer, without exchange or collection charges, at The
First National Bank of Beaumont, Beaumont, Texas, or, at the op-
tion of the holder, at the Chase -Manhattan Bank, New York, New
York, in the lawful money of the United States of America, the sum
of $ , solely from the special fund specified in the
bond to which this coupon appertains, said sum being the interest
due that date on City of Beaumont waterworks System Revenue Bond,
Second Series, dated March 1, 1958. 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. Bond No.
Mayor
City Clerk
Section VII:
FORM OF COMPTROLLER'S CERTIFICATE: That substantially the follow-
ing certificate shall be printed on the back of each of said bonds,
which certificate shall be manually subscribed:
OFFICE OF THE COMPTROLLER
REGISTER NO.
THE STATE OF TEXAS
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 is a
valid and binding obligation of the City of Beaumont, 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.
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas,
Comptroller of Public Accounts of
the State of Texas
Section VIII:
DEFINITIONS: That, as -used in this ordinance, the following terms
shall mean and include, and are defined, as follows, to -wit:
(a) City - the City of Beaumont, Texas, and, where appropri-
ate, the City Council thereof.
(b) System - the waterworks system of the City, including all
present and future extensions, replacements, and improvements to
said waterworks system.
(c) Net revenues - the gross revenues derived from the oper-
ation of the System less the reasonable expenses of operation and
maintenance of said System, including all salaries, labor, mater-
ials, interest, and such repairs and extensions as in the judgment
of the governing body of the City are necessary to keep the plant
or utility in operation and render adequate service to such City
and the inhabitants thereof, or such as might be necessary to meet
some physical accident or condition which would otherwise impair
the original security.
(d) Bonds - the $50,000 Second Series bonds authorized by
this ordinance.
(e) Outstanding Bonds - the outstanding bonds of the City's
$2,800,000 Waterworks System Revenue Bonds, Series 1956, dated
September 1, 1956.
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(f) Remaining voted bonds or remaining bonds - the remaining
$4,625,000 of bonds authorized at the election held within the
City on the 29th day of August, 1956, and which the City expressly
reserves the right to issue in Section XI (11.01) of this ordinance.
(g) Additional bonds - the additional bonds that the City
expressly reserves the right to issue in Section XI (11.02) of
this ordinance.
Section IX:
ADOPTION OF PROVISIONS OF REVENUE BOND ORDINANCE OF NOVEMBER 13,
1956: That the Bonds authorized by this ordinance shall be issued
under the terms, conditions, and provisions of Sections IX, X, XI,
and XII of the ordinance adopted by this City Council on the 13th
day of November, 1956, which authorized the issuance of the Out-
standing Bonds, except where the designated provisions of said
ordinance of November 13, 1956, are inconsistent or in conflict
with the provisions of this ordinance, in which event the provi-
sions of this ordinance shall govern; and said designated sections
(except where inconsistent or in conflict with the provisions of
this ordinance) are hereby made a part of this ordinance and shall
apply with equal force to the Bonds hereby authorized.
Section X:
ADDITIONAL PAYMENTS INTO BOND FUND AND RESERVE FUND: (a) After
payment of the expenses of operation and maintenance of the System,
as provided in Section IX (2) (a) of the ordinance of November 13,
1956, and simultaneously with the making of the payments into the
Bond Fund required under Section IX (2) (b) of said ordinance of
November 13, 1956, the City shall pay into said Bond Fund the fol-
lowing (in addition to the payments required under said ordinance
of November 13, 1956):
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(9-3
(a) Beginning with March of 1958 and in each month thereafter
to and including August of 1958, an amount of not less
than one-sixth (16th) of the interest falling due on
the Bonds September 1, 1958; and
(b) During each year, beginning September 1, 1958, an amount
equal to not less than 100% of the amount required.to
meet the interest and principal payments falling due on
and before the next maturity of the Bonds.
The amount required to be paid into the Bond Fund in each year
hereunder shall be in substantially equal monthly payments from
moneys in the System Fund (which System Fund was established in
Section IX (2) of the ordinance of November 13, 1956). If in any
month the City shall, for any reason, fail to pay into said Bond
Fund the full amounts above stipulated, amounts equivalent to such
deficiencies shall be set apart and paid into said Bond Fund from
the first available unallocated revenues of1the following month or
months and shall be in addition to the amounts hereinabove provided
to be otherwise paid into said Bond Fund each month.
(b) In addition to the payments into the Reserve Fund requir-
ed under Section IX (2) (c) of said ordinance of November 13, 1956,
the City shall pay into said Reserve Fund each month (in approxi -
1
mately equal monthly payments or deposits), beginning with March of
1958, not less than one -sixtieth (160th) of the average annual
principal and interest requirements of the Bonds hereby authorized,
and such payments shall be continued until such time as a balance
is reached (in addition to the balance in said Reserve Fund requir-
ed by said ordinance of November 13, 1956) of not less than said
average annual principal and interest requirements of the Bonds
hereby authorized. If in any month the City shall, for any reason,
fail to pay into the Reserve Fund the full amount above stipulated,
amounts equivalent to such deficiencies shall be set apart and
paid into said Reserve Fund from the first available and unallo-
cated revenues of the following month or months and shall be in
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addition to the monthly deposit hereinabove provided to be other-
wise paid into said Reserve Fund.
When said balance of not less than the average annual princi-
pal and interest requirements of the Bonds hereby authorized is
reached in the Reserve Fund, no further payment (in so far as the
Bonds hereby authorized are concerned) need be made into said
Fund; however, in the event that said balance is ever reduced to
an amount.less than the average annual principal and interest re-
quirements of the Bonds hereby authorized, the monthly payments,
as above provided, shall be resumed and continued until said bal-
ance of not less than the average annual principal and interest
requirements of the Bonds hereby authorized is again reached.
Section XI:
11.01 - REMAINING VOTED BONDS: The City expressly reserves the
right to issue the remaining $4,625,000 bonds voted at the elec-
tion held August 29, 1956, in one or more installments, and said
bonds when issued shall be on a parity in all respects with the
Outstanding Bonds and the Bonds authorized hereby, but none of the
remaining bonds shall be issued unless:
(a) Each of the funds created by the ordinance of November
13, 1956, contains the amount of money then required to be on de-
posit therein (as required by said ordinance of November 13, 1956,
and by this ordinance);
(b) The net revenues of the System for the last preceding
fiscal year, as certified by an independent certified public ac-
countant or firm of certified public accountants, were equal to at
least one and one-half (1/2) times the average annual principal
and interest requirements on all bonds that will be outstanding
payable from the revenues of the System after the bonds then
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proposed to be issued are issued, sold, and delivered;
(c) Provision is made in the ordinance or ordinances author-
izing the bonds then proposed to be issued for approximately equal
monthly payments or deposits into the Reserve Fund until a balance
is reached (in addition to deposits into said Fund required by
other ordinances or proceedings relating thereto and in addition to
any balance or balances required by said other ordinances or pro-
ceedings) of not less than the average annual principal and inter-
est requirements of the bonds then proposed to be issued and which
balance shall be reached within five (5) years from the date of
such bonds; and
(d) The bonds then proposed to be issued are made to mature
on September 1st in each of the years in which they are scheduled
to mature.
The term "net revenues" as used herein shall mean all of.the
net revenues of the System (excluding income received specifically
for capital items) after deduction of the reasonable expenses of
operation and maintenance of the System (excluding expenditures
for capital items).
11.02 - ADDITIONAL BONDS: In addition to inferior lien bonds auth-
orized by Chapters 249 and 250, Acts of the 51st Legislature of
Texas, Regular Session, 1949, as amended, the City reserves the
right to issue additional parity bonds in one or more installments
and in one or more issues, and such additional bonds, when issued,
may be secured by and payable from a first lien on and pledge of
the net revenues of the System in the same manner and to the same
extent as are the Outstanding Bonds, the Bonds hereby authorized,
and the remaining voted bonds. No additional bonds, however, shall
be issued until and unless all conditions specified in Section
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11.01, above, with respect to the remaining voted bonds have been
met, and said conditions so specified in said Section 11.01 shall
apply with equal force with respect to the issuance of additional
bonds under this Section 11.02.
The term "net revenues" as used herein shall have the same
meaning as that set forth in said Section 11.01.
Section XII:
RECORD OF BONDS AND APPROVAL AND REGISTRATION OF BONDS: That it
shall be the duty of the Mayor to submit the record of the Bonds
hereby authorized, and said Bonds, to the Attorney General of the
State of Texas for examination and approval, and thereafter to have
said Bonds registered by the Comptroller of Public Accounts of the
State of Texas.
Section XIII:
SALE OF BONDS: That said Bonds, having been advertised for public
sale in accordance with the terms and provisions of Section 4 of
Article IX of the City's Home -Rule Charter, and bids having been
received pursuant thereto, it is hereby found and determined that
the bid of John Nuveen & Co., Chicago, Illinois, and associates
at a price of the principal amount of said Bonds, plus accrued in-
terest thereon from the date thereof to the date of actual delivery,
is the best bid received, and the sale of said Bonds to the named
bidder at the stated price is hereby authorized, approved, ratified,
and confirmed, subject to the unqualified approving opinion, as to
the legality of said Bonds, of the Attorney General of the State of
Texas, and Vinson, Elkins, Weems & Searls, Houston, Texas, market
attorneys. After the Bonds have been registered by the Comptroller
of Public Accounts of the State of Texas, said Comptroller is auth-
orized and requested to deliver the same to the American National
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Bank, Austin, Texas, for the account of the City. Upon
receipt of the full purchase price, said Bonds shall be
delivered to the purchasers.
Section XIV:
DUTIES OF MAYOR AND CITY CLERK: That the Mayor and City
Clerk are hereby authorized and directed to do any and
all things necessary and/or convenient to carry out the
terms of this ordinance.
Section XV
EFFECTIVE DATE OF ORDINANCE: That this ordinance shall take
from and after the date of its passage.
ATTEST:
ity Clerk, City of Beaumont, Texas
PASSED this 11th day of February, 1958•
(SEAL)
The foregoing ordinance and all the terms and
provisions thereof are hereby approved.
Direct or of Finance
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