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HomeMy WebLinkAboutORD 74-7ORDINANCE NO. 74-;7 ORDINANCE AUTHORIZING THE.ISSUANCE OF $1,000,000 CITY OF BEAUMONT, TEXAS, SEWER SYSTEM BONDS, SERIES 1974 WHEREAS, at an election held in and throughout the City of Beaumont, Texas, on the 4th day of May, 1971, more than'a ma- jority of the duly qualified resident electors of said City, voting at said election, voted in favor of the issuance of $12,950,000 tax bonds of said City, said bonds to mature ser - Tally within 25 years from their date or dates and bearing in- terest at any rate or rates as shall be determined with the dis- cretion of said City Council, but not exceeding 7% per annum; and WHEREAS, the City Council of said City has heretofore is- sued, sold and delivered all of said bonds, except $1,000,000 sanitary sewer bonds; and WHEREAS, the City Council of said City now desires to proceed with the issuance, sale and delivery of such remaining $1,000,000 sanitary sewer bonds; Therefore BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. The City's negotiable, serial, coupon bonds to be designated "CITY OF BEAUMONT, TEXAS, SEWER SYSTEM BONDS, SERIES 197411,'are hereby authorized to be issued and delivered in the principal amount of $1,000,000 for the purpose of constructing permanent public improvements in and for said City, to -wit: san- itary sewer improvements. ��- 7946 �2 Y - Section 2. Said bonds shall be dated January 15, 1974, shall be numbered consecutively from 1 to 200, both inclusive, shall be in the denomination of $5,000 each, and shall mature serially, without option of prior redemption, on January 15 of each of the years, and in the amounts, respectively, as set forth in the following schedule, to -wit: $400,000 1983 400,000 1984 200,000 1985 Section 3. Said bonds shall bear interest per annum at the following rates, respectively, to -wit: Bonds maturing 1983 Bonds maturing 19 Bonds maturing 19 through 19 , !-3 % through 19, % through 19,j , : f o % evidenced by interest coupons which shall appertain to said bonds and which shall be payable on the dates indicated in the FORM OF BONDS set forth in this ordinance. Section 4. Said bonds, and the interest coupons appertaining thereto, shall be payable, shall have the characteristics, and shall be signed and executed (and said bonds shall be sealed), all as provided and in the manner indicated in the FORM OF BONDS set forth in this ordinance. Section 5. That the form of said bonds, including the form of registration certificate of the Comptroller of Public Account's of the State of Texas to be printed and endorsed on each of said bonds, and the form of the aforesaid interest coupons which shall -2- PI N -7 -f g -7 � appertain and be attached initially to each of said bonds, shall be, respectively, substantially as follows: No. FORM OF BONDS: $5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF JEFFERSON CITY OF BEAUMONT, TEXAS, SEWER SYSTEM BOND, SERIES 1974 THE CITY OF BEAUMONT, in the County of Jefferson, State of Texas, hereby acknowledges itself indebted to and PROMISES TO PAY TO BEARER ON JANUARY 15, 19 , the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from the date hereof, at the rate of per annum, evidenced by interest coupons payable January 15, 1975, and semiannually thereafter on July 15 and January 15 of each year while this bond is outstanding. The principal of this bond and the interest coupons appertaining hereto shall be payable to bearer in any coin or currency which on the respective dates of payment of such principal and interest is legal tender for the payment of debts due the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this bond or proper coupon at The American National Bank of Beaumont, Texas, or, at the option of the holder, at the Texas Commerce Bank, National Association, Houston, Texas, which shall be the paying agents for this series of bonds. -3- C 7�_ _7 -��-1 L -7 THIS BOND is one of a series of negotiable, serial, coupon bonds, dated January 15, 1974, issued in the principal amount of $1,000,000 (constituting a portion and the final installment out of a total of $12,950,000 bonds authorized at an election held within the City on May 4, 1971, $11,950,000 bonds having been heretofore issued), in accordance with Chapters 1 and 7 of Title 22, Revised Civil Statutes of Texas, 1925, as amended, the Home -Rule Charter of said City, and authorized pursuant to an ordinance duly adopted by the City Council of the City for the purpose of constructing permanent public improvements in and for said City, to -wit: sanitary sewer improvements. IT IS HEREBY CERTIFIED, RECITED AND COVENANTED that this bond has been duly and validly voted, authorized, issued and delivered; that all acts, conditions and things required or proper to be performed, exist and be done precedent to and in /f ` the issuance and delivery of this bond, have been performed, existed and been done in accordance with law; that this bond is issued on the full faith and credit of said City; 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, by the levy of a direct annual ad valorem tax upon all taxable prop- erty within said City sufficient for said purposes; and that the total indebtedness of -said City, including the entire series of bonds of which this is one, does not exceed any Constitutional or statutory limitation. -4- IN TESTIMONY WHEREOF, this bond and the interest coupons ap- pertaining hereto have been signed with the facsimile signature of the Mayor and countersigned with the facsimile signature of the City Clerk, and the official seal of the City has been duly impressed, or placed in facsimile, on this bond, '-�90Z&L Mayo , Cit of Beaumont, Texas COUNTERSIGNED: City d+lerk; City of Be mont,- Texas (SEAL) FORM OF REGISTRATION CERTIFICATE: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I HEREBY CERTIFY that this bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas and that this bond has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS MY SIGNATURE AND SEAL this (SEAL) Comptroller of Public Accounts of the State of Texas ' -5- M. FORM OF INTEREST COUPONS: ON 15, 19 , the CITY OF BEAUMONT, TEXAS, in the County of Jefferson, State of Texas, promises to pay to bearer the amount shown on this interest coupon, in any coin or currency which on such date is legal tender for the payment of debts due the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this coupon, at The American National Bank of Beaumont, Texas, or, at the option of the holder,'at the Texas Commerce Bank, National Association, Houston, Texas, said amount being interest due that date on the bond bearing the number here- inafter designated of that issue of City of Beaumont, Texas, Sewer System Bonds, Series 1974, dated January 15, 1974. Bond No. Mayor City Cljrk Section 6. The approving opinion of Vinson, Elkins, Searls, Connally & Smith, Houston, Texas, and Cusip Numbers may be printed on the backs of.the bonds, but errors or omissions in such opinion or errors or omissions of such numbers shall have no effect what- ever on the validity of such bonds._ M Section 7. That there is hereby created a special fund to be designated "City of Beaumont, Texas, Sewer System Bonds,. Series 197+, Interest and Sinking Fund", and all taxes col- lected for and on account of said bonds shall be deposited, as collected, to the credit of the Interest and Sinking Fund. Dur- ing each year while any of said bonds or interest coupons ap- pertaining thereto are outstanding and unpaid, the City Council of the City shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise and produce the money required to pay the interest on said bonds as such in- terest comes due and to provide and maintain a sinking fund of not less than 2% of the principal amount of said bonds or not less than the amount required to pay the principal out of said tax, whichever is greater; and said tax shall be based on the latest approved tax rolls.of the City, with full allowance be- ing made for tax delinquencies and the cost of tax collection. d q--® Ig-� ;Said rate and amount of ad valorem tax are hereby levied, and are hereby ordered to be levied, against all taxable property in the City for each year while any of said bonds or interest coupons ap- pertaining thereto are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said.ad valorem taxes sufficient to provide for the payment of the interest on and principal of said bonds, as such interest comes due and such prin- cipal matures, are hereby pledged irrevocably for such payment within the limits prescribed by law. -7- Section 8. The City certifies that based upon all facts, estimates and circumstances now known or reasonably expected to be in existence on the date the bonds are delivered and paid for, the City reasonably expects that the proceeds of the bonds will not be used in a manner that would cause the bonds or any portion of the bonds to be an "arbitrage bond" under Section 103(d)(2) of the Internal Revenue Code of 1954, as amended, and the tem- porary and proposed regulations heretofore prescribed thereunder, including, without limitation, Sections 1,103-13 and 1.103-114 of the proposed regulations published in the,Federal Register on May 32 1973. Furthermore, all officers, employess and agents of the City are authorized and directed to provide certifications of facts, estimates and circumstances which are material to the reasonable expectations of the City as of the date the bonds are delivered and paid for, and any such certifications may be relied upon by counsel, by the owners or holders of the bonds, or by any person interested in the exemption of interest on the bonds from Federal income taxation.. Moreover, the City covenants that it shall make such use of the proceeds of the bonds, regulate investments of proceeds of the bonds, and take such other and further action as may be required so that the bonds shall not be "arbitrage bonds" under Section 103(d) of the Internal Rev- enue Code of 1954, as amended, and regulations prescribed from time to time thereunder. Section 9. That the Mayor of said City is hereby autho- rized to have control of said bonds and all necessary records and proceedings pertaining to said bonds pending their delivery IL . and their investigation, examination and approval by the Attorney General of the State of Texas and their registration by the Comptroller of Public Accounts of the State of Texas. Upon reg- istration of said bonds, the.Comptroller of Public Accounts (or a deputy designated in writing to act for the Comptroller) shall manually sign the Comptroller's registration certificate pre- scribed herein to be printed and endorsed on each bond; and the seal of the Comptroller shall be impressed, or placed in facsimile, on each of said bonds. Section 10, Said bonds, having been advertised for public sale in accordance with the terms and provisions of Section 4,. Article IX of the City's Charter, and bids having been received pursuant thereto, it is hereby found and determined that the bid of at a price equal to the principal amount thereof, plus accrued interest thereon from the date hereof to the date of actual delivery plus a cash premium of $ '0 - , is the best bid received, and the sale of said bonds to the named bid- der at the stated price is hereby authorized, approved, ratified and confirmed, subject to the unqualified approving opinion, as to the legality of the bonds, by the Attorney General of the State of Texas and of Vinson, Elkins, Searls, Connally & Smith, Houston, Texas, market attorneys, is hereby authorized, approved, ratified and confirmed. Section 11. The Mayor, City Clerk and other appropriate of- ficers of the City of Beaumont are hereby authorized and directed to do any and all things necessary and/or convenient to carry out the terms of this ordinance. Section 12. That this ordinance shall take effect immediately upon its passage. PASSED AND APPROVED this 22nd day of January, 1974. May r, Citof Beaumont, Texas ATTEST: City Clfrk, City of BdAumo#t, Texas