Loading...
HomeMy WebLinkAboutORD 37-CCC�>d 3 ps4® AN ORDINANCE AUTHORIZING ISSUANCE OF $2,000,000 CITY OF BEAUMONT, TEXAS, WATERWORKS SYSTEM REVENUE REFUNDING BONDS; PRESCRIBING THE TERMS AND CONDITIONS THEREOF; MAK- ING PROVISION FOR THE PAYMENT OF PRINCIPAL AND IN- TEREST THEREON; PROVIDING FOR THE EXCHANGE OF SAID BONDS FOR CERTAIN OUTSTANDING BONDS; 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 19th day of May 1959, with the following members present, to -wit: Jimmie P. Cokinos Mayor Paul H. Anger Dr. G. M. Brassard Dr. J. R. Venza Harry B. Mason James T. Garrard Councilman, Ward 1 Councilman, Ward 2 Councilman, 11ard 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 Anger , 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: ••. AN ORDINANCE AUTHORIZING ISSUANCE OF $2,000)'000 CITY OF BEAUMONT, TEXAS, WATERWORKS SYSTEM REVtNUR REFUNDING BONDS; PRESCRIBING THE TERMS AND CONDITIONS THEREOF; MAK- ING PROVISION FOR THE PAYMENT OF PRINCIPAL AND IN- TEREST THEREON; PROVIDING FOR THE EXCHANGE OF SAID BONDS FOR CERTAIN OUTSTANDING BONDS; AND CONTAINING 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 reve- nues 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 under Register No. 31453) CITY OF BEAUMONT WATERWORKS SYSTEM REVENUE BONDS, SERIES 1958, dated March 1, 1958, numbered con- secutively from 1 to 2000, 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 Comptrol- ler of Public Accounts of Texas under Register No. 3228o) , and CITY OF BEAUMONT WATERWORKS SYSTEM REVENUE BONDS, FIFTH SERIES, dated March 1, 1959, numbered con- secutively from 1 to 2000, both inclusive, in the denomination of $1,000 each, aggregating $2,000,000 (approved -by Attorney General of Texas 13 9 1959, and registered by Comptrolle# of Public Accounts of Texas under Register No. ,-3 r,> 6 j) ; WHEREAS, it is provided in the proceedings authorizing the issuance of said bonds, and in the bonds, that the City reserves the right to issue the remaining bonds authorized at an election held in said City on the 29th day of August, 1956, and additional bonds on a parity with said bonds; and • e- -2- WHEREAS, the City Council has determined, and hereby deter- mines, that all of said $2,000,000 Fifth Series bonds should be re- funded into bonds as hereafter provided in said ordinance, the City expressly reserving the right to issue said remaining voted bonds and additional parity 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 $2,000,000, to be known and designated as "CITY OF BEAUMONT WATERWORKS SYSTEM REVE- NUE REFUNDING BONDS, SERIES 1959", for the purpose of refunding, can- celing, and in lieu of a like principal amount of outstanding water- works system revenue bonds, being the $2,000,000 Waterworks System Revenue Bonds, Fifth Series, described in the preamble to this ordi- nance, under and in strict conformity with the Constitution and laws of the State of Texas, particularly Articles 1111 to 1118, both in- clusive, and Article 2368a, Vernon's Texas Civil Statutes, 1925,.as amended. Section II: 2.01 - DATE, NUMBERS, DENOMINATION, AMOUNT, AND MATURITY: That said bonds shall be dated March 1, 1959, shall be numbered consecutively from 1 to 2000, both inclusive, shall be in the denomination of $1,000 each, aggregating $2,000,000, 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: 9-1 Bonds Nos. Maturity (both incl.) 1 - 25 1964 26 - 5o 1965 51 - 75 1966 76 - loo 1967 101 - 125 1968 126 - 150 1969 151 - 175 1970- 176 - 200 1971 -3- Amount $ 25,000 25, 000 25,000 25,000 25,000 25,000 . 25, 000 25,000 Bonds Nos, Maturity Amount (both incl.) 201 - 350_ ` 1972 $ 150,000 351 - 500- 1973 150,000 501 - 650 1974 150,000 651 - 800 1975 150,000 8ol - 950 -� , c_, 1976 150,000 951 - 1100,E 1977 150,000 1101 - 1250 1978 150,000 1251 - 1400 1979 150,000 14o1 - 1550 1980 150,000 1551 - 1700 ;; 1981 150,000 1701 1850 1982 150,000 1851 - 2000 1983 150,000 2.02 - OPTION OF REDEMPTION: That the City of Beaumont expressly reserves the right to redeem Bonds Nos. 501 to 2000, both inclusive, of this issue, in whole or in part, on September 1, 1973, 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 redeemed 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 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 other- wise accrue after the redemption date on the bonds called for redemp- tion 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 Lei 14)s on a date earlier than fifteen years from the date of such bonds does not materially affect the marketability of the bonds or a fa- vorable 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 through 350 - 4-1/2f, Bonds Nos. 351 through 500 - 4%; Bonds Nos. 501 through 1100 - 3.60%, and Bonds Nos. 1101 through 2000 - 3-3/4%, interest payable September 1, 1959, and semi-annually thereafter on March lst and September lst of each year until the principal sum thereof shall have been paid. 3.02 - BANKS OF PAYMENT: That 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 of the bonds and interest coupons, 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, -6- 3,� -c c 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 Comptrol, ler's registration certificate, as provided hereafter in Section VII of this ordinance, shall be manually subscribed. RPe-f.i nn IT - 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 REFUNDING BOND, SERIES 1959 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 rates, see Section 3.01 of bond ordinance.) per annum, interest payable September 1, 1959, and semi-annually thereafter on March lst and September 1st 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 -6- _q 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 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, 1959. 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 op- tion of prior redemption, being numbered consecutively from 1 to 2,000, both inclusive, in the denomination of $1,000 each, AGGREGAT- ING $2,000,000, and, together with the other bonds of this series, is issued for the purpose of refunding, canceling, and in lieu of a like principal amount of the City's outstanding waterworks system revenue bonds, under and in strict conformity with the Constitution and laws of the State of Texas, particularly Articles 1111 to 1118, both in- clusive, and Article 2368a, Vernon's Texas Civil Statutes, as amended. At an election held within said City on the 29th day of August, 1956, waterworks system revenue bonds were authorized in the total princi- pal amount of $6,675,000, out of which $6,000,000 bonds have hereto- fore been issued; (a) $2,000,000 original bonds out of said total authorized bonds having been combined with $800,000 revenue refunding bonds into an issue of $2,800,00 Waterworks System Revenue Bonds, Series 1956, dated September 1, 1956; (b) $2,000,000 Waterworks System Revenue Bonds, Series 1958, dated March 1, 1958, consisting of original bonds and bonds issued to refund original bonds issued out of said total authorized bonds; and (c) $2,000,000 Waterworks System -7- Revenue Bonds, Fifth Series, dated March 1, 1959, consisting of orig- in -al bonds and bonds issued to refund original bonds issued out of said total authorized bonds. All of said $2,000,000 Fifth 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 pre- sumed 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 equi- ties 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 oustanding 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. M A'' LZ' , J THE CITY OF BEAUMONT EXPRESSLY RESERVES THE RIGHT TO REDEEM BONDS NOS. 501 TO 2000, both inclusive, of this issue, in whole or 3n part., on September 1, 1973, or on any interest payment date there- after, by paying to the owners and holders thereof a price equal to the principal amount of the bonds redeemed plus unpaid accrued in- terest 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 gen- eral 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 due provision has been made to pay the principal and unpaid accrued interest on the bonds called for redemp- tion 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. THE CITY OF BEAUMONT EXPRESSLY RESERVES THE RIGHT TO ISSUE the remaining $675,000 bonds voted at the election held August 29, 1956, and additional bonds payable from the net revenues of the water- works 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, the outstanding Series 1958 bonds, and the bonds of this issue, but only pursuant to and subject to the restrictions, cove- nants, and limitations contained in the ordinances authorizing the Series 1956 bonds, the Series 1958 bonds, and the bonds of this issue, to which reference is hereby made for all particulars, and to all the -9- provisions of which ordinances the owner or holder of this bond by the acceptance thereof expressly assents. THE HOLDER OF THIS BOND and the holder of the bonds of the series of which this bond is a part shall be subrogated to all the rights and privileges belonging to the holder or holders of the bonds which have been refunded by the issuance of this series of bonds. 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 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 Legis- lature of Texas, Regular Session, 1955, codified in Vernon's Texas Civil Statutes as Article 717j), all as of the 1st day of March, 1959. COUNTERSIGNED: Mayor, City of Beaumont, Texas City Clerk, City of Beaumont, Texas _10- 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 Water- works System Revenue Refunding Bond, Series 1959, dated March 1, 1959. The holder hereof shall never have the right to demand.p ayment of this obligation out of any funds raised or to be raised by taxation. Bond No. City Clerk Mayor *(Coupons maturing after September 1, 1973, - shall contain the following additional clause: unless the bond to which this coupon apper- tains has been called for previous redemption 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 REGISTER NO. THE STATE OF TEXAS I HEREBY CERTIFY that there is on file and of record in my -11- 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 bind- ing special obligation of the City of Beaumont, Texas, payable from the revenues pledged to its payment by and in the ordinance authoriz- ing 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 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 inhabi- tants thereof, or such as might be necessary to meet some physical ac- cident or condition which would otherwise impair the original security. (d) Bonds - The $2,000,000 Waterworks System Revenue Re- funding Bonds, Series 1959, authorized by this ordinance. -12- (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) Fifth Series Bonds - The $2;000,000 City of Beaumont Waterworks System Revenue Bonds, Fifth Series, dated March 1, 1959, all of which bonds are being refunded by the Revenue Refunding Bonds hereby authorized. (g) Remaining Voted Bonds or Remaining Bonds - The remain- ing $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 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 -13- payment of the expenses,of operation and maintenance of the System, as provided in Section IX(2)(a) f 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: Section IX(a)(b) of said ordinance of November 13, 1956; and Section X(A) of the ordinance of March 11, 1958 (which authorized the issuance of the Series 1958 Revenue Bonds), the City shall pay into said Bond Fund (in addition to payments re- quired under said ordinances of November 13, 1956, and March 11, 1958): (1) Beginning with the month of May 1959 and in each month thereafter to and including August of 1959, an amount not less than one-fourth (1/4th) of the interest fall- ing due on the Bonds September 1, 1959; provided, that the amount or amounts heretofore paid into said Bond Fund for the benefit of the Fifth Series Bonds (or for the benefit of the bonds refunded by said Fifth Series Bonds) shall reduce by such amount or amounts the pay- ments required hereunder to be paid into said Fund; (2) Beginning with the month of September of 1959 and in each month thereafter to and including August of 1963, an amount which is not less than one -sixth (1/6th) of the next maturing interest on the Bonds; and (3) During each year, beginning September 1, 1963, an amount equal to not less than 100% of the amount re- quired to meet the interest and principal 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 -14- c L 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 ordinancb of March 11., 1958, the City shall pay into said Reserve Fund each month (in approximately equal monthly payments of deposits), beginning with May, 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 May of 1959, the City shall pay into said Fund a sum which is not less than the total of three of said 1/60th payments; provided, further, that the amount or amounts heretofore paid into said Reserve Fund for the benefit of the Fifth Series Bonds, or the bonds refunded thereby, shall reduce by such amount or amounts the payments required hereunder to be paid into said Fund), 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 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 here- by 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 de- posit 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 -15- : =7 � -his. the average annual principal and interest requirements of the Bonds hereby authorized, 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 autho- rized is again reached. Section XI: 11.01 -,REMAINING VOTED BONDS: The City expressly reserves the right to issue the remaining $675,000 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 13, 1956, contains the amount of money then required to be on deposit therein.(as required by the ordinance of November 13, 1956, 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 balance or balances required by said other ordinances or proceedings) �16- 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 schedule 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 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 is- sue 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 Outstand- ing 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 re- maining 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: SUBROGATION OF HOLDERS OF BONDS: That the holders of the Bonds autho- rized by this ordinance shall be subrogated to -all- the- rights and - privileges belonging to the holders of the bonds which are being re- funded by the issuance of this series of Bonds. -17- Section XIII: 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 XIV: EXCHANGE OF BONDS: That the Bonds shall be exchanged for the Fifth Series Bonds, and the Comptroller shall register none of the Bonds authorized by this ordinance until all of said Fifth Series Bonds have been delivered to him for cancellation. After the Bonds have been so exchanged, they shall be delivered by the Comptroller to the holder or holders who surrendered the underlying bonds for exchange and cancellation.. 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 19th day of May , 1959. ATTEST: Ci•y Clerk, City of Beaumont, Texas (SEAL) Olor, City of Beaum t, Texas The foregoing ordinance and all the terms and provisions thereof are hereby approved. Im Director o ` Finance