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HomeMy WebLinkAboutORD 53-BB0 . . AN ORDINANCE 6Ad . 5-3,3)3 3-1 .tee: -_..,N►., . AUTHORIZING THE ISSUANCE OF CITY OF BEAUMONT, TEXAS, WATERWORKS SYSTEM REVENUE BONDS, SERIES 1958, -IN THE AMOUNT OF $2,000,000; 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 § COUNTY OF JEFFERSON § 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 March, 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 Mayor . Councilman, Ward 1 Councilman, Ward 2 Councilman, Ward 3 Councilman, Ward 4 City Clerk and the following members absent, to -wit: when the following business was' transacted: Councilman Venza. introduced an ordinance and moved that it be adopted. The ordinance was read in full. The motion for adoption was seconded by Councilman Amer and carried by the following vote: AYES: Councilmen Anger, Brassard, Venza, and Mason, and Mayor Cokinos. NOES: None. The ordinance thus adopted follows: 01? .4'r, PL4 S3 95 ,3-0-1 j o MF• �f f e AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF BEAUMONT, TEXAS, WATERWORKS SYSTEM REVENUE BONDS, SERIES 1958, IN THE AMOUNT OF $2,000,000; 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 payable from the net revenues of the waterworks system of the City of Beaumont, Texas, have heretofore been issued: and (1) CITY OF BEAUMONT WATERWORKS SYSTEM .REVENUE BONDS, SERIES 1956, dated September 1, 1956, numbered consecutively from 1 to 2800, both inclusive, in the denomination of $1,000 each, aggregating $2,800,000, and (2) CITY OF BEAUMONT WATERWORKS SYSTEM REVENUE BONDS, - SECOND SERIES, dated March 1, 1958, numbered consecutively from 1 to 50, both inclusive, in the denomination of $1,000 each, aggregating $50,000, WHEREAS, said Series 1956 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 extending the City's existing waterworks system, said $2,000,000 being a first parcel or installment out of a total 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, said $50,000 Second Series Bonds constituted a parcel and second installment out of said total voted $6,675,000 bonds, said Second Series bonds being in all re- spects on a parity with the outstanding Series 1956 bonds; and -2- 'AAA 53 88 WHEREAS, the City Council has determined, and hereby determines, that all said $50,000 Second Series bonds should be refunded into bonds as hereinafter provided in this ordinance, and that additional bonds in the principal amount of $1,950,000 (out of said total.voted bonds) should now be authorized and sold, and that said bonds should be combined into one issue of $2,000,000 bonds; Therefore -I BE IT ORDAINED BY THE CITY OF BEAUMONT: Section Z: NAME, AMOUNT, PURPOSE, AND AUTHORIZATION: That the bonds of the City of Beaumont, Texas, be issued in the principal sum of $2,000,000, to be known and designated as "CITY OF BEAUMONT WATERWORKS SYSTEM REVENUE BONDS, SERIES 1958", for the purpose of refunding, canceling, and in lieu of $50,000 principal amount of outstanding waterworks system revenue bonds, described in the pre- amble to this ordinance, and for the further 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, 1925, as amended ($1,950,000 of said bonds constituting a parcel and installment out of a total of $6,675,000 bonds authorized at an election held within said City on the 29th day of August, 1956, $2,050,000 of said total author- ized bonds having heretofore been issued). Section II: 2,01 - DATE, DENOMINATION, AMOUNT, AND MATURITY: That said bonds shall be dated March 1, 1958, shall be numbered consecutively from 1 to 2,000, both inclusive, shall be in the denomi- nation enomi- nation of $1,000 each, aggregating $2,000,000, and shall become -3- s3.6 B q 57 due and payable serially on the 1st day -of September in -each of the years and in the respective amounts shown in the follow.- ing schedule, to -wit: 2.02 - OPTION OF REDEMPTION: That the City of Beaumont express- ly reserves the right to redeem Bonds Nos. 1551 to 2000, both inclusive, of this issue, in whole or in part, on September 1, 1968, or on any interest payment date thereafter, by paying to the owners and holders thereof a price equal to the prin- cipal amount of the bonds redeemed plus unpaid accrued interest thereon to the date fixed for redemption. Notice of the exer- cise of the option to redeem shall be given in writing to the banks at which said bonds are payable, and said notice shall be published at least one (1) time in a financial journal or publication of general circulation in the United States of America, which notice shall be mailed to said banks and published in said journal or publication at least thirty (30) days prior to the date fixed for redemption. When said bonds, in whole or in part, have been called for redemption in the manner prescribed, and when due provision has been made to pay the principal and unpaid accrued. interest on the bonds called for r e d e m Bonds Nos. Maturity Amount 1 - 200 1959 $ 200,000 201 - 400 1960 200,000 4o1 - 600 1961 200,000 601 - 800 3j 1962 200,000 801 - 950 1963 150,000 951 - 1100 1964 150,000 1101 - 1250 1965 150,000 1251 - 1350 1966 100,000 1351 - 1450 5, 1967 100,000 1451 - 155 1968 100,000 1551 - 1650 1969 100,000 1651 - 1750 1970 100,000-! 1751 - 1850 1971 100,000:1 1851 c, - 1950 ; 1972 100,00o-J� 1951 - 2000 '""q 1973 50,000 2.02 - OPTION OF REDEMPTION: That the City of Beaumont express- ly reserves the right to redeem Bonds Nos. 1551 to 2000, both inclusive, of this issue, in whole or in part, on September 1, 1968, or on any interest payment date thereafter, by paying to the owners and holders thereof a price equal to the prin- cipal amount of the bonds redeemed plus unpaid accrued interest thereon to the date fixed for redemption. Notice of the exer- cise of the option to redeem shall be given in writing to the banks at which said bonds are payable, and said notice shall be published at least one (1) time in a financial journal or publication of general circulation in the United States of America, which notice shall be mailed to said banks and published in said journal or publication at least thirty (30) days prior to the date fixed for redemption. When said bonds, in whole or in part, have been called for redemption in the manner prescribed, and when due provision has been made to pay the principal and unpaid accrued. interest on the bonds called for r e d e m e t i o n to t h -e date fixed for -4- redemption, the right of the owners and holders to.collect interest which would otherwise accrue after the redemption date on the bonds called for redemption shall terminate on the date fixed for redemption. 2.03 - FINDING AS TO OPTION: That it is hereby affirmatively found and declared that the redemption provision making said bonds callable on a date earlier than fifteen years from the date of such bonds does not materially affect the marketability of the bonds or a favorable rate of interest... Section III: 3.01 - INTEREST RATES: That said bonds shall bear interest at the following rates per annum, to -wit: Bonds Nos. 1 to 950, both inclusive, at the rate of 3-7/8% per annum, Bonds Nos. 951 to 1550, both inclusive, at the rate of 2-3/4% per annum, Bonds Nos. .1551 to 1950, both inclusive, at the rate of 3% per annum, and Bonds Nos. 1951 to 2000, both inclusive, at the rate of 1-1/4% per annum, interest payable September 1, 1958, and semi-annually thereafter on March 1st and September lst 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 prin- cipal 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 dat6s 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. -5- &�d, 53813 -t1-l�SZ L. 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 countersigned 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 facsimile 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 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 substantially 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 of *% 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.present ation and surrender of this bond, and interest falling due on and prior to maturity shall be payable only upon presentation and sur- render of the interest coupons hereto attached as such coupons severally become due. THE DATE OF THIS BOND, in conformity with the or- dinance hereinafter mentioned, IS MARCH 1, 1958. THIS BOND IS ONE OF A SERIES OF 2,000 BONDS of like date and tenor, except as to serial number, interest rate, maturity, and option of prior redemption, being numbered consecutively from 1 to 2,000, both inclusive, in the denomination of $1,000 each, AGGREGATING $2,000,000, and, together with the other bonds of this series, is issued for the purpose of refunding, canceling, and in lieu of $50,000 in principal amount of the City's out- standing waterworks system revenue bonds, and for the further pur- pose 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 qualified 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, to all -7- or .I the provisions of which ordinance the owner or holder of this bond by the acceptance thereof expressly assents. Of the bonds of this series, $1,950,000 constitute a parcel and installment out of a total of $6,675,000 revenue bonds authorized at said election held August 29, 1956, $2,050,000 bonds out of said total authorized bonds having heretofore been issued: (a) $2,000,000 out of said total bonds having been combined with $800,000 revenue refunding bonds into an issue of $2,800,000 Waterworks System Revenue Bonds, Series 1956, dated September 1, 1956; and (b) $50,000 Waterworks System Revenue Bonds, Second Series, dated March 1, 1958. All of said $50,000 Second Series bonds are refunded by the bonds of this series. EACH SUCCESSIVE HOLDER OF THIS BOND and each successive holder of each of the coupons hereto attached is 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 officials 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 ' r92d 53 -BB 1: as to principal and interest, solely from the revenues derived from the operation of the waterworks system of said City, in - eluding 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 outstanding 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 REDEEM BONDS NOS. 1551 TO 2000, both inclusive, of this issue, in whole or in part, on September 1, 1968, or on any interest payment date thereafter, by paying to the owners and holders thereof a price equal to the principal amount of the bonds re- deemed plus unpaid accrued interest thereon to the date fixed for redemption. Notice of the exercise of the option to redeem shall be given in writing to the banks at which said bonds are payable, and said notice shall be published at least one (1) time in a financial journal or publication of general circulation in the United States of America, which notice shall be mailed to said banks and published in said journal or publication at least thirty (30) days prior to the date fixed for redemption. When said bonds, in whole or in part, have been called for redemption in the manner prescribed, and when due provision has been made to pay the principal and unpaid accrued interest on the bonds called for redemption to the date fixed for redemption, the right of the owners and holders to collect interest which would otherwise accrue after the redemption date on the bonds called for redemption shall terminate on the date fixed for redemption. Cid 538S 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 remaining bonds and additional bonds may be on a parity in all respects with the outstanding Series 1956 bonds and the bonds of 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 expressly assents. IT IS HEREBY CERTIFIED, RECITED, AND REPRESENTED that 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 ex- ceed"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 -10- 1 •,; 3--11-195d' r; e 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 1st day of March, 1958• Mayor, City of Beaumont, Texas COUNTERSIGNED: City Clerk, City of Beaumont, Texas *(Bonds Nos. 'l to 950 -- 3-7/8%;��� - Bonds Nos. 951 to 1550--.2-3/4� Bonds Nos:1551 to 1950 -- %; and Bonds Nos -1951 to 2000 -- 1-1/4f.) 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 , 19 , the City of Beaumont, 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 option of the holder., at the Chase -Manhattan Bank, New York, New York, in 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, Series 1958, 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. City Clerk -11- Mayor *(Coupons maturing after September 1,1968, shall - contain the following '�',additional clause: unless the bond to which this coupon appertains has been called for previous re- demption and due provision made to redeem same,) Section VII: FORM OF COMPTROLLER'S CERTIFICATE: That substantially the following certificate shall be printed on the back of each of said bonds, which certificate shall be manually subscribed: OFFICE OF THE COMPTROLLER THE STATE OF TEXAS REGISTER NO. /CAd, s3 B 3��1�1158 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 special 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 appropriate, 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. -12- (c) Net revenues - the gross revenues derived from the operation of the System less the reasonable expenses of operation and maintenance of said System, including all salaries, labor, materials, 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 $2,000,000 Series,1958 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. (f) Second Series Bonds - the $50,000 City of Beaumont Waterworks System Revenue Bonds, Second Series, dated March 7., 1958, all of which bonds are being refunded by Series 1958 Bonds hereby authorized. (g) Remaining voted bonds or remaining bonds - .the remaining $2,675,000 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., (h) 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 131 1956: That the Bonds authorized by this ordinance shall be issued under the terms, conditions, and provisions of Sections -13- &I cA, S-3 fib' 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 Outstanding 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 provisions of this ordinance shall govern; and said desig- nated 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. .qPn.i-.i nn 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 following (in addition to the payments re- quired under said ordinance of November 13, 1956): (a) Beginnin ; with March of 1958 and in each month thereafter to and including August of 1958, an amount of not less than one-sixth (1/6th) of -che 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 prin- cipal payments falling due on and before the next maturity date 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 -14- 3�l1�L9S' 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 of the 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 required under Section IX (2) (c) of said ordinance of November 13, 1956, the City shall pay into said Reserve Fund each month (in approximately 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 con- tinued until such time as a balance is reached (in addition to the balance in said Reserve Fund required by said ordinance of November 13, 1956) of not less than said average annual prin- cipal 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 unallocated revenues of the following month or months and shall be in 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 principal 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 -15- principal and interest requirements of the Bonds hereby author- ized, the monthly payments, as above provided, shall be resumed and continued until said balance 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 $2,675,000 bonds voted at the election 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-anless: (a) Each of the funds created by the ordinance of November 13, 1956, contains the amount of money then required to be on deposit 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 accountant or firm of certified public accountants, were equal to at least one and one-half (1-�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 proposed to be issued are issued, sold, and delivered; (c) Provision is made in the ordinance or ordinances authorizing 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 -16- 34 �q�s required by said other ordinances or proceedings) of not less than the average annual principal and interest 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 specific- ally 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 author- ized 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 re- maining voted bonds. No additional bonds; however, shall be issued until and unless all conditions specified in Section 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 is shall be the duty of the Mayor to submit the record of the Bonds -17- �{ S 3 /.SIL' 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: EXCHANGE OF CERTAIN BONDS: Bonds Nos. 1951 to 2000, both inclusive, of the Bonds shall be exchanged for the Second Series Bonds, and the Comptroller of Public Accounts shall register none of'the Bonds until all said Second Series Bonds shall have been deliver- ed to him for cancelation. After said Bonds Nos. 1951 to 2000, both inclusive, of the Bonds have been so exchanged, they shall be delivered by the said Comptroller to the holder or holders who surrendered said underlying bonds for exchange and cancelation. Section XIV: SALE OF $1,950,000 OF THE BONDS: That the Bonds, having been ad- vertised for public sale in accordance with the terms and pro- visions of Section 4 of Article IX of the City's Home -Rule Charter, and bids having been received pursuant thereto, itis hereby found and determined that the bid of John Nuveen & Co., Chicago, Illinois, and Associates, to purchase Bonds Nos. 1 to 1950, both inclusive, of the Bonds, at a price equal to the principal amount thereof, plus accrued interest thereon from the date thereof to the date I ---- of actual delivery, plus a cash premium of $20.00, is the best bid received, and the sale of said Bonds Nos. 1 to 1950, both inclusive, 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 IMO Bonds have been registered by the Comptroller of Public Accounts of the State of Texas, said Comptroller is authorized and requested to deliver Bonds Nos. 1 to 1950, both inclusive, to the American National Bank, Austin, Texas, for the account of the City. Upon receipt of the full purchase price for said Bonds Nos. 1 to 1950, both inclusive, said bonds shall be delivered to the purchasers. Section XV: 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`XVI: EFFECTIVE DATE OF ORDINANCE: That this ordinance shall take effect from and after the date of its passage. PASSED this lith day of Mardh, 1958. i ayor, City of Beaum t, Texas ATTEST: y Clerk, City of Beaum nt,.Texas (SEAL) The foregoing ordinance and all the terms and provisions thereof are hereby approved. Director of Finance -19- 913 V THE STATE OF TEXAS § COUNTY OF JEFFERSON § I, the undersigned, City Clerk of the City of Beaumont, Texas, do hereby certify that the attached and foregoing is a true and correct copy of an ordinance adopted by the City Council of said City at a meeting held on the lith day of March, 1958, together with an excerpt from the minutes of -said meeting showing the adoption. thereof, as same appears of record in the official minutes of said City Council on file in my office. WITNESS MY HAND AND THE OFFICIAL SEAL OF SAID CITY, this the day of March, 1958. y Clerk, City of Beaumont, Texas (SEAL)