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HomeMy WebLinkAboutORD 32-CCA)Ld. 3o?�C RUK!'CO rD b:D •" z- AN ORDINANCE AUTHORIZING ISSUANCE OF $300,000 CITY OF BEAUMONT, TEXAS, WATERWORKS SYSTEM REVENUE BONDS; PRESCRIB- ING THE TERMS AND CONDITIONS THEREOF; MAKING PRO- VISION FOR THE PAYMENT OF PRINCIPAL AND INTEREST THEREON; PROVIDING FOR THE SALE THEREOF; AND CON- TAINING 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 14th day of April, 1959, with the following members present, to -wit: Jimmie P. 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: None , 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 Mason , and carried by the following vote: AYES: Councilmen Anger, Brassard, Venza and Mason, and Mayor Cokinos. NOES: None. The Mayor thereupon declared that the ordinance had been duly and lawfully adopted. The ordinance thus adopted follows: c AN ORDINANCE AUTHORIZING ISSUANCE OF $300,000 CITY OF BEAUMONT, TEXAS, WATERWORKS SYSTEM REVENUE BONDS; PRESCRIB— ING THE TERMS AND CONDITIONS THEREOF; MAKING PRO- VISION FOR THE PAYMENT OF PRINCIPAL AND INTEREST THEREOF; PROVIDING FOR THE SALE THEREOF; AND CON - TRAINING OTHER PROVISIONS RELATING TO THE SUBJECT WHEREAS, the outstanding bonds of the following described revenue bond issues of the City of Beaumont, Texas, constitute the only indebtedness chargeable against or payable from the net revenues of the waterworks system of said City,.to-wit: and 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 (approved by Attorney General of Texas November 28, 1956, and registered by Comptroller of Public Accounts of Texas on same date under Register No. 31453) , and CITY OF BEAUMONT WATERWORKS SYSTEM REVENUE BONDS, SERIES 1958, dated March 1, 1958, numbered con- secutively from 1 to 2004 both inclusive, in the denomination of $1,000 each, aggregating $2,000,000 (approved by Attorney General of Texas March 12, 1958, and registered by Comptroller of Public Ac- counts of Texas on same date under Register No. 32280); WHEREAS, it is provided in the proceedings authorizing the issuance of'said Series 1956 revenue bonds and said Series 1958 reve- nue bonds, and in the bonds, that the City expressly reserves the right to issue the remaining $2,675,000 bonds out of the total of $6,675,000 revenue bonds authorized at the election held within said City on the 29th day of August, 1956, $4,000,000 bonds out of said total authorized revenue bonds having heretofore been issued ($800,000 revenue refunding bonds having been combined with $2,000,000 bonds Issued out of said total voted bonds into the $2,800,000 Series 1956, and all $2,000,000 Series 1958 bonds being either original bonds or bonds issued to refund original bonds issued out of said total voted bonds) ; and WHEREAS, the City Council has determined, and hereby deter- mines, that a portion and installment of $300,000 bonds out of said total voted bonds should now be issued (leaving the remaining $2,375,000 voted bonds to be issued hereater), said $300,000 bonds to be in all. respects on a parity with the outstanding Series 1956 and Series 1958 bonds; Therefore 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 $300,000, to be known and designated as "CITY OF BEAUMONT WATERWORKS SYSTEM REVENUE BONDS, FOURTH 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 -as authorized at a bond election held within said City on the 29th day of August, 1956 (said bonds constituting a por- tion and installment out of a total of $6,675,000 bonds authorized at said election, $4,000,000 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, 1959, shall be numbered consecutively from 1 to 300, both inclusive, shall be in the denomination of $1,000 each, aggregating $300,000, 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 Amount 1 - 75 1959 $ 75,000 76 - 150 196o 75,000 151 - 225 1961 75,000 226 - 289 1962 64,000 Bonds Nos: Maturity Amount 290 1963 $ 1,000 291 1964 1,000 292 1965 1,000 293 1966 1,000 294 1967 1,000 295 1968 1,000 296 1969 1,000 297 1970 1,000 298 1971 1,000 299 1972 1,000 300 1973 1,000 Section III: 3.01 - INTEREST RATE: That said bonds shall bear interest at the fol- lowing rates per. annum: Bonds Nos. 1 through 300 - _3 4 o per annum, Bonds Nos. through - o per annum, Bonds Nos. through SQQ - per annum, interest payable September 1, 1959, 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 sur- render 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 C",3acc 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, FOURTH SERIES THE CITY OF BEAUMONT, in the County of Jefferson, in the State of Texas, FOR VALUE RECEIVED, hereby acknowledges itself in- debted 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 -�� (NOTE TO PRINTER: For interest rate or rates, see Section III of bond ordinance.) per annum, interest payable September 1, 1959, and semi-annually thereafter on March 1st and September 1st of each year until the principal sum hereof shall have been paid. Both prin- cipal 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, t ( 4 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 sur- render of the interest coupons hereto attached as such coupons sever- ally become due. THE DATE OF THIS BOND, in conformity with the ordinance hereinafter mentioned, IS MARCH 1, 1959. THIS BOND IS ONE OF A SERIES OF 300 BONDS of like date and tenor, except as to number, interest rate, and maturity, being num- bered consecutively from 1 to 300, both inclusive, in the denomination of $1,000 each, AGGREGATING $300,000, and, together with the other bonds of this series, is issued for the purpose of improving and ex- tending the City's existing waterworks system, under and in strict conformity with the Constitution and laws of the State of Texas, par- ticularly Articles 1111 to 1118, both inclusive, Verno,:Q 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 the provisions of which ordinance the owner or holder of this bond by the acceptance thereof expressly assents. The bonds of this series con- stitute a portion and installment out of a total of $6,675,000 revenue bonds authorized at said election held August 29, 1956, $4,000,000 bonds out of said total authorized bonds having heretofore been is- sued: (a) $2,000,000 bonds out of said total authorized bonds hav- ing 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) $2,000,000 Waterworks System Revenue Bonds, CIA 3 a. -c 0 Series 1958, dated March 1, 1958, consisting of original bonds and bonds issued to refund original bonds issued out of said total autho- rized bonds. EACH SUCCESSIVE HOLDER OF THIS BOND and each successive holder of each of the interest 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 no- tice, thereby has acquired absolute title thereto, free from any de- fenses 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 TO THE CITY OF BEAUMONT or a pledge of its faith and credit, but shall be payable, along with the outstanding Series 1956 bonds and Series 1958 bonds, as to principal and interest, solely from the revenues derived from the- operation of the waterworks system of said City,.including all additions, extensions, and improvements thereto which may here- after be made, after deduction of the reasonable expenses of mainten- ance and operation of said system (the bonds of this issue and the outstanding Series 1956 bonds and Series 1958 bonds being in all re- spects 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 sys- tem of the City, and such remaining bonds and additional bonds may be on a parity in all respects with the outstanding Series 1956 bonds, the Series 1958 bonds, and the bonds of this issue, but only pursuant to and subject to the restrictions, covenants, and limitations con- tained in the ordinances authorizing the Series 1956 bonds, the Ser- ies 1958 bonds, and the bonds of this issue, 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 and Series 1958 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 sig- natures, has caused the corporate seal of said City to be affixed hereby, 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 Leg- islature of Texas, Regular Session, 1955, codified in Vernon's Texas 4 --� Lk-��IS J Civil Statutes as Article 717J), all as of the 1st day of March, 1959. Mayor, City of Beaumont, Texas COUNTERSIGNED: City Clerk, City of Beaumont, Texas 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 Beaumoiff,"" n 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 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 Water- works System Revenue Bond, Fourth Series, dated March 1, 1959. 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 Mayor, City of Beaumont, Texas 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 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 IqS-1 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 Con- stitution and laws of the State of Texas, and is a valid and binding special obligation of the City of Beaumont, Texas, payable for 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 appro- priate, 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 op- eration of the System less the reasonable expenses of operation and maintenance of said System, including all salaries, labors 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 inhabi- tants thereof, or such as might be -necessary to meet some physical accident or condition Which would otherwise impair -the original -se- curity. (d) Bonds - The $300,000 Fourth Series bonds authorized by this ordinance. (e) Outstanding Bonds - The outstanding bonds of the City's (1) $2,800,000 Waterworks System Revenue Bonds, Series 1956, dated September 1, 1956, and (2) $2,000,000 Waterworks System Revenue Bonds, Series 1958, dated March 1, 1958. (f) Remaining Voted Bonds or Remaining Bonds - The remain- ing $2,375,000 of bonds authorized at the election held within the City on the 29th day of August, 1956, and which the City expressly reserved the right to issue in Section XI (11.01) of this ordinance. (g) Additional Bonds - The additional parity revenue 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 Novem- ber, 1956, which authorized the issuance of the Series 1956 Revenue 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 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 pay- ment of the expenses of operation and maintenance of the System, as provided in Section IX(2)(a) of the ordinance of November 13, 1956 (which ordinance authorized the issuance of the Series 1956 Revenue Bonds), and simultaneous with the making of the payments into the Bond Fund required under: Y Section IX(2)(b) of said ordinance of November 13, 1956, and Section X(a) of the ordinance of March 11, 1958 (which authorized the issue ance of the Series 1958 Revenue Bonds), the City shall pay into said Bond Fund the following (in addition to payments required under said ordinances of November 13, 1956, and March 11, 1958): (1) Beginning with April of 1959 and in each month thereafter to and including August of 1959, an amount not less than one -fifth (1/5th) of the total interest and principal payments falling due on the Bonds on September 1, 1959; and (2) During each year, beginning September 1, 1959, 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 here- under 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 avail- able 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 re- quired under Section IX(2)(c) of said ordinance of November 13, 1956, and Section X(b) of said ordinance of March 11, 1958, the City shall pay into said Reserve Fund each month (in approximately equal monthly payments of deposits), beginning with April, 1959, not less than one - sixtieth (1/60th) of the average annual principal and interest re- quirements of the Bonds hereby authorized (provided, that in the month of April of 1959, the City shall pay into said Fund a sum which is not less than the total of two of said 1/60th payments), and such pay- ments shall be continued until such time as a balance is reached (in addition to the balance in said Reserve Fund required by the ordinance of November 13, 1956, and by the ordinance of March 11, 1958) 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 stipu- lated, 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 otherwise paid into said Reserve Fund. When said balance of not less than the average annual prin- cipal and interest requirements of the. Bonds hereby authorized is reached in the Reserve Fund, no further payment (insofar 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 requirements of the Bonds hereby authorized, the monthly payments, as above provided, shall be resunied and continued until said balance of not less than the average annual principal and interest requirements of the Bonds hereby autho- rized is again reached. Section XI: 11.01 - REMAINING VOTED BONDS: The City expressly reserves the right to issue the remaining $2,375,000 bonds voted at the election held August 29, 1956, in --one or more installments, and said bonds when is- sued 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 OAt, 3acc y 13, 1956, contains -the amount of money then required to be on deposit therein (as required by the ordinance of November 13, 19560 by the ordinance of March 11, 1958, and by this ordinance); (b) The net revenues of the System for the last preceding fiscal year, as certified by an independent certified public account- ant or firm of certified public accountants, were equal to at least one and one-half (1-1/2) times the average annual principal and in- terest 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 autho- rizing 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 bal- ance or balances 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 specifi- cally 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 autho- rized by Chapters 249 and 250, Acts of the 51st Legislature of Texas, Regular Session, 1949, as amended, the City reserves the right to r 0- issue additional parity bonds in one or more installments and in one or more issues, and such additional bonds, when issued, may be se- cured by and payable from a first lien on and pledge of the net reve- nues 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 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 re- spect 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 re- ceived pursuant thereto, it is hereby found and determined that the bid Of The First National Bank of Beaumont, Agent for Phelps, Fenn & Co. , and ssocia es at a price of the principal amount of said Bonds, plus accrued inter- est 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 con- firmed, subject to the unqualified approving opinion, as to the legal- ity 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 Ac- counts of the State of Texas, said Comptroller is authorized ,and re- quested to deliver the same to the American National Bank, Austin, Texas, for the account of the City. Upon receipt of the full pur- chase 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. Y Section XV: �'1 y: -�' ti- 5J • fry a�- :'7Y EFFECTIVE DATE OF'ORDINANCEi That this ordinance shall take effect :fromr:arid rafter -the date of its passage. PASSED: this. •14th day of April, 1959. a .9r, City of Beaumont, Texas 7 ATTEST : `• 4 I y Clerk, City of Beaumo t, Texas (SEAL) < The foregoing ordinance and all the terms and provisions thereof are hereby approved. Director of Finance