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HomeMy WebLinkAboutORD 81-98 C �J Ordinance 7/- AN ORDINANCE AUTHORIZING THE ISSUANCE OF $3 , 740, 000 CITY OF BEAUMONT, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS, SERIES 1981 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAU- MONT: ARTICLE I FINDINGS AND DETERMINATIONS Section 1 .1 : Findings and Determinations . It is hereby officially found and determined that: (a) The City has heretofore issued and there presently remain outstanding the following bonds (the "Refunded Bonds" ) : Bond Nos. 341 through 400 of the City of Beaumont, Texas, Waterworks System Revenue Refunding Bonds, Series 1959, in the aggregate principal amount of $300, 00-0. Bond Nos . 59 through 600 of the City of Beaumont, Texas, Waterworks System Revenue Bonds, Series 197.1-A, in the aggregate principal amount of $2,710, 000. Bond Nos . 39 through 200 of the City of Beaumont, Texas, Waterworks System Revenue Bonds, Series 1972-A, in the aggregate principal amount of $700, 000. Bond Nos . 43 through 200 of the City of Beaumont, Texas, Waterworks System Revenue Bonds, Series 1978-A; in the aggregate principal amount of $790, 000 . (b) The City desires to refund the Refunded Bonds, in advance of their maturities in order to terminate and defease /�_JOY- 9 P, C the pledges and liens securing payment of the Refunded Bonds, thereby releasing the City from the covenants, provisions, terms and conditions contained in the ordinances authorizing the issuance of the Refunded Bonds, many of which are onerous and unfavorable to the City, and thereby further permitting the City to finance greatly needed waterworks and sewer system facilities and improvements that could not otherwise' be financed through the issuance of revenue bonds under the terms and provi- sions of such ordinances, and further to permit the City to com- bine the City' s waterworks system and sewer system into a single system and to issue revenue bonds secured by the pledge of the combined revenues thereof. (c) The City is authorized by Article 717k, Vernon' s Texas Civil Statutes, as amended, to issue refunding revenue bonds for the purpose of refunding the Refunded Bonds in advance of their maturities, and to accomplish such refunding by depositing directly with, or for the account of, the paying agents for the Refunded Bonds the proceeds of such refunding bonds, together with other available funds, which may be invested in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America, which shall mature and/or bear interest payable at such times and in such amounts as will be sufficient to provide for the scheduled payment of the Refunded Bonds, and such deposit shall constitute the making of firm banking and financial arrangements for the discharge and final payment of the Refunded Bonds. (d) Concurrently with the adoption of this ordinance the City has adopted another ordinance authorizing and direct- ing the City to enter into an escrow agreement with Texas Commerce Bank-Beaumont N.A. , Beaumont, Texas, and First Security National Bank, Beaumont, Texas, as authorized in said Article 717k, pursuant to which proceeds of the refund- ing bonds herein authorized, and other available funds, will be deposited, invested and applied in a manner independently certified to be sufficient to provide for the full and timely payment of all interest on and principal of the Refunded Bonds . (e) Upon the issuance of the refunding bonds herein authorized and the creation of the escrow referred to above, the Refunded Bonds shall no longer be regarded as being out- standing, except for the purpose of being paid pursuant to such escrow agreement, and the pledges, liens, trusts and all other covenants, provisions, terms and conditions of the ordinances authorizing the issuance of the Refunded Bonds shall be discharged, terminated and defeased. -2- rr ARTICLE II DEFINITIONS AND INTERPRETATIONS Section 2 . 1 : Definitions . In this Ordinance, the fol- lowing terms shall have the following meanings, unless the context clearly indicates otherwise: "Additional Junior Lien Bonds" shall mean the additional junior lien revenue bonds permitted to be issued by the City pursuant to Section 6 . 1 of this Ordinance. "City" shall mean the City of Beaumont, Texas, and, , where appropriate, the City Council thereof and any successor to the City as owner of the System. "Fiscal Year" shall mean the City' s fiscal year, which currently runs from October 1 to September 30, but which may be changed from time to time by the City. "Gross Revenues" shall mean all revenues, income and receipts of every nature derived or received by the City from the operation and ownership of the System; the interest income from the investment or deposit of money in the Waterworks and Sewer System Revenue Fund, the Prior Lien Waterworks and Sewer System Revenue Bond Interest and Sinking Fund, the Prior Lien Waterworks and Sewer System Revenue Bond Reserve Fund, the Junior Lien Waterworks and Sewer System Revenue Bond Interest and Sinking Fund, and the Junior Lien Waterworks and Sewer System Revenue Bond Reserve Fund; and any other revenues here- after pledged to the payment of all Prior Lien Bonds and Junior Lien Bonds. "Holder" or "holders" shall mean the bearer or bearers of one or more Junior Lien Bonds . "Junior Lien Bond Reserve Fund Requirement" means average annual principal and interest requirements on the Junior Lien Bonds; provided, however, in no event shall it exceed fourteen percent (14%) of the sum of the following for each series of Bonds then outstanding: the original face amount of such series or, if the original proceeds (as defined in Section 1 .103-13 (b) of the Treasury Regulations, as from time to time hereafter amended) of such series are less than 98% of the original face amount of such series, then the original proceeds thereof. The Junior Lien Reserve Fund Requirement is hereby determined to be $500, 000 upon the issuance of -3- ` e the Series 1981 Bonds, and shall be recomputed upon the issuance of each series of Additional Junior Lien Bonds and set forth in the ordinance authorizing the issuance of each series of Additional Junior Lien Bonds; "Junior Lien Bonds" shall mean the Series 1981 Bonds and each series of Additional Junior Lien Bonds from time to time hereafter issued, but only to the extent such Junior Lien Bonds remain outstanding within the meaning of this Ordi- nance. "Maintenance and Operation Expenses" shall mean the reasonable and necessary expenses of operation and mainte- nance of the System, including all salaries, labor, mate- rials, repairs and extensions necessary to render efficient service (but only such repairs and extensions as, in the judgment of the governing body of the City, are necessary to keep the System In operation and render adequate service to the City and the inhabitants thereof, or . such as might be necessary to meet some physical accident or conditions which would otherwise impair the Prior Lien Bonds or the Junior Lien Bonds ) , and all payments (including payments of amounts equal to all or a part of the debt service on bonds issued by other political subdivisions and authorities of the State of Texas) under contracts for the impoundment, conveyance or treatment of water, wastewater or sewage or otherwise which are now or hereafter defined as operating expenses by the Legislature of Texas . Depreciation shall never be considered as a Maintenance and Operation Expense. "Net Revenues" shall mean all Gross Revenues remaining after deducting the Maintenance and Operation Expenses. "Prior Lien Bond Reserve Fund Requirement" means that amount which shall be determined upon the issuance of the initial series of Prior Lien Bonds and shall be recomputed upon the issuance of each series of Additional Prior Lien Bonds, and set forth in the ordinance authorizing the issu- ance of such series of Prior Lien Bonds; however, in no event shall the Prior Lien Bond Reserve Requirement exceed the maxi- mum annual principal and interest requirements on the Prior Lien Bonds . -4- t "Prior Lien Bonds" shall mean all revenue bonds from time to time hereafter issued pursuant to Section 6 . 1 of this Ordinance secured by a lien on Net Revenues prior and supe- rior to the lien securing the Junior Lien Bonds. "Series 1981 Bonds" shall mean the City of Beaumont, Texas, Waterworks and Sewer System Revenue Refunding Bonds, Series 1981 . "Special Project" shall mean, to the extent permitted by law, any water or sanitary sewer system property, improvement or facility declared by the City not to be part of the System, for which the costs of acquisition, construction, and installation are paid from proceeds of a financing transaction other than the issu- ance of bonds payable from ad valorem taxes or revenues of the System, and for which all maintenance and operation expenses are payable from sources other than ad valorem taxes or revenues of the System, but only to the extent that and for so long as all or any part of the revenues or proceeds of which are or will be pledged to secure the payment or repayment of such costs of acquisition, construction and installation under such financing transaction. "System" shall mean all properties, facilities, improve- ments, equipment, interests, rights and powers constituting the water system and sanitary sewer system of the City, and all future extensions, replacements, betterments, additions, improvements, enlargements, acquisitions, purchases and repairs to the System. Section 2 .2 : Interpretations. All terms defined herein and all pronouns used in this Ordinance shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the articles and sections of this Ordinance have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof. This Ordinance and all the terms and provisions hereof shall be liberally construed to effectuate the pur- poses set forth herein and to sustain the validity of the Junior Lien Bonds and the validity of the lien on and pledge of the Net Revenues to secure the payment of the Junior Lien Bonds. -5- c ARTICLE III SERIES 1981 BONDS Section 3 .1: Name, Amount, Purpose, Authorization. The Series 1981 Bonds, to be known and designated as CITY OF BEAUMONT, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS, SERIES 1981, shall be issued in the aggregate principal amount of $3, 740, 000 for the purpose of refunding all of the City' s outstanding Waterworks System Revenue Refunding Bonds Series 1959 and its outstanding Waterworks System Revenue Bonds, Series 1971-A, Series 1972-B and Series 1978-A, under and pursuant to the authority of Article 717k and Articles . 1111-1118, Vernon's Texas Civil Statutes, as amended, and all other applicable law. Section 3 .2 : Date, Denomination, Maturities and Inter- est Rates . The Series 1981 Bonds shall be dated November 1, 1981, shall be in the denomination of $5, 000 each, shall be numbered consecutively from 1 upward in order of their matu- rities, shall mature on the maturity date in each of the years and in the amounts shown below and shall bear interest per annum from their date until paid at the rates shown below: Maturity Date: September 1 Years Amounts Maturing Maturing Interest Rates 1982 $130, 000 8 . 757. 1983 200, 000 9 . 00% 1984 215, 000 9.20% 1985 235, 000 9 .40% 1986 260, 000 9 .60% 1987 285, 000 9 .80% 1988 310, 000 10 .00% 1989 345, 000 10 .20% 1990 375, 000 10 .45% 1991 415, 000 10 .75% 1992 460, 000 11 . 00% 1993 510, 000 11 .25% Interest at such rates shall be payable in the manner pro- vided and on the dates stated in the FORM OF SERIES 1981 BONDS set forth in Article IV. -6- C Section 3 .3 : Bonds Not Subject to Redemption. The Series 1981 Bonds shall not be subject to redemption prior to their scheduled maturities. Section 3 .4: Manner of Payment, Characteristics and Execution. The Series 1981 Bonds, and any interest coupons appertaining thereto, shall be payable, shall have the char- acteristics, and shall be signed and executed (and the Series 1981 Bonds shall be sealed) , all as provided and in the man- ner indicated in the FORM OF SERIES 1981 BONDS set forth in Article IV of this Ordinance. Section 3 . 5. Ownership of Series 1981 Bonds . The City and the paying agent may deem and treat the bearer of any Series 1981 Bond or of any coupon, as the absolute owner of such Bond or coupon, whether or not the same shall be overdue, for the purpose of receiving payment thereof and for all other purposes, and the City and the paying agent shall not be affected by any notice to the contrary. ARTICLE IV FORM OF SERIES 1981 BONDS Section 4.1 : Forms . ' The Series 1981 Bonds, the inter- est coupons appertaining thereto, the form of certificate of registration of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of the Series 1981 Bonds shall be in substantially the following form, with such omissions, insertions and variations as may be permitted or required pursuant to the terms of this Ordin- ance: FORM OF SERIES 1981 BONDS UNITED STATES STATE OF TEXAS OF AMERICA NO. $5, 000 CITY OF BEAUMONT, TEXAS WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BOND SERIES 1981 ON SEPTEMBER 1, , the CITY OF BEAUMONT, TEXAS, a municipal corporation duly incorporated under the laws of the -7- State of Texas (herein the "City" ) , for value received, hereby PROMISES TO PAY to bearer, but solely from certain Net Revenues as hereinafter provided, the principal sum of FIVE THOUSAND DOLLARS and to pay interest thereon from the date hereof at the rate of % per annum, payable semiannually on each March 1 and September 1, commencing on March 1, 1982 , until this bond has been paid. The interest coupons appertaining hereto shall be payable to the bearer, upon presentation and sur- render of such interest coupons as they severally mature. Payment of principal of and interest on this bond shall be made in .lawful money of the United States of America, without exchange or collection charges, at the principal corporate trust office of Texas Commerce Bank-Beaumont N.A. , Beaumont, Texas, which shall be the paying agent for this series of bonds. THIS BOND IS ONE OF A DULY AUTHORIZED SERIES OF BONDS (herein the "Series 1981 Bonds" ) of like tenor and effect except as to serial number, interest rate and maturity, num- bered 1 through 748, both inclusive, in the denomination of $5, 000 each, in the aggregate principal amount of $3, 740, 000 issued pursuant to an ordinance adopted by the City Council of the City (herein the "Ordinance" ) for the purpose of refund- ing all of the City' s outstanding Waterworks System Revenue Refunding Bonds, Series 1959 and its outstanding Waterworks System Revenue Bonds, Series 1971-A, Series 1972-A and Series 1978-A, under and pursuant to the authority of Article 717k and Articles 1111-1118, Vernon' s Texas Civil Statutes, as amended, and all other applicable law. THE DATE OF THIS BOND, in conformity with the Ordinance, is November 1, 1981. THIS BOND AND ALL OF THE SERIES 1981 BONDS are special obligations of the City that are equally and ratably payable from and secured by a lien on the "Net Revenues" collected and received by 'the City from the operation and ownership of the City' s waterworks and sanitary sewer system, as defined and provided in the Ordinance, which Net Revenues are required to be set aside for and pledged to the payment of the Series -8- 1981 Bonds, and all additional bonds issued on a parity there- with, in the interest and sinking fund and the reserve fund required to be maintained for the payment of all such bonds, all as more fully described and provided for in the Ordinance. THE LIEN ON NET REVENUES SECURING THE BONDS OF THIS SERIES SHALL BE IN ALL RESPECTS JUNIOR AND SUBORDINATE TO THE PRIOR AND SUPERIOR LIEN ON NET REVENUES THAT SHALL SECURE THE PAYMENT OF PRIOR LIEN WATERWORKS AND SEWER SYSTEM REVENUE BONDS WHICH THE CITY HAS RESERVED THE RIGHT TO ISSUE FROM TIME TO TIME IN THE FUTURE SUBJECT TO THE RESTRICTIONS CONTAINED IN THE ORDIN- ANCE. This bond and the series of which it is a part, together with the interest thereon, are payable solely from such Net Revenues and do not constitute an indebtedness or general obligation of the City. THE CITY HAS RESERVED THE RIGHT to issue prior lien revenue bonds, additional parity revenue bonds and subordi- nate lien revenue obligations, subject to the restrictions contained in the Ordinance, which may be secured by a lien prior and superior to, on a parity with, or subordinate and inferior to, the lien on the aforesaid Net Revenues securing this bond and the series of which it is a part. THE BEARER HEREOF and the bearer of any interest coupon appertaining hereto shall never have the right to demand payment hereof or of such interest coupon out of any funds raised or to be raised by taxation. IT IS HEREBY DECLARED AND REPRESENTED that this bond has been duly and validly issued and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the issuance and deliv- ery of this bond have been performed, existed, and been done in accordance with law; that the Series 1981 Bonds do not exceed any statutory limitation; and that provision has been made for the payment of principal of and interest on this bond and all of the Series 1981 Bonds by the aforesaid lien on and pledge of the Net Revenues. IN WITNESS WHEREOF, the City has caused its corporate seal to be impressed, printed or lithographed hereon and has caused this bond and the interest coupons attached hereto to be executed by the manual, imprinted or lithographed facsim- ile signatures of the Mayor and City Clerk. -9- e CITY OF BEAUMONT, TEXAS By xxxxxxxxxxxxxxxxxxxx Mayor COUNTERSIGNED: xxxxxxxxxxxxxxxxxxxxxx City Clerk [SEAL] FORM OF INTEREST COUPON: No. $ ON 1, , the CITY OF BEAUMONT, TEXAS, promises to PAY TO BEARER, but solely from the Net Revenues described in the bond to which this coupon appertains, the amount shown on this interest cou- pon, in lawful money of the United States of America, without exchange or collection charges to bearer, upon the presentation and surrender of this interest coupon at the principal corporate trust office of Texas Commerce Bank-Beaumont N.A. , Beaumont, Texas , such amount being interest due that day on the bond, bearing the number hereinafter designated, of that issue of CITY OF BEAUMONT, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS, SERIES 1981, dated November 1, 1981 . The bearer hereof -10- C shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. xxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx City Clerk Mayor FORM OF COMPTROLLER' S REGISTRATION CERTIFICATE THE STATE OF TEXAS REGISTER NO. OFFICE OF THE COMPTROLLER 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 and the proceedings for the issuance hereof have been examined by him as required by law, that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas and that it is a valid and binding special obligation of the City of Beaumont, Texas, payable from the revenues and other funds pledged to its payment by and in the proceedings authorizing the same, and I do further certify that this bond has this day been registered by me'. WITNESS MY SIGNATURE AND SEAL OF OFFICE this Comptroller of Public Accounts [SEAL] of the State of Texas ARTICLE V SECURITY AND SOURCE OF PAYMENT FOR ALL BONDS Section 5. 1: Pledge and Source of Payment. The City hereby covenants and agrees that all Gross Revenues of the System shall, as collected and received by the City, be deposit- ed and paid into the special funds hereinafter established, and shall be applied in the manner hereinafter set forth, in -11- order to provide for the payment of all Maintenance and Opera- tion Expenses; to provide for the payment of principal of, interest on and any redemption premiums on the Prior Lien Bonds and all expenses of paying same; to provide for the payment of principal of, interest on and any redemption premiums on the Junior Lien Bonds, and all expenses of paying same; and to provide for the disposition of the remaining Net Revenues . The Junior Lien Bonds shall constitute special obligations of the City that shall be payable solely from and, subject to the prior and superior lien of the Prior Lien Bonds, shall be equally and ratably secured by a lien on the Net Revenues, as collected and received by the City from the operation and ownership of the System, which Net Revenues shall, in the manner herein provided, be set aside for and pledged to the payment of the Junior Lien Bonds in the Junior Lien Bond Interest and Sinking Fund and the Junior Lien Bond Reserve Fund as hereinafter provided, and the Junior Lien Bonds shall be in all respects on a parity with and of equal dignity with one another. The holders of the Junior Lien Bonds and the interest coupons appertaining thereto shall never have the right to demand payment of either the principal of or inte- rest on the Junior Lien Bonds out of any funds raised or to be raised by taxation. Section 5 .2 : Rates and Charges : So long as any Junior Lien Bonds remain outstanding, the City shall fix, charge and collect rates and charges for the use and services of the System which are calculated to be fully sufficient to produce Net Revenues in each Fiscal Year at least equal to 125% of the principal and interest requirements scheduled to occur in such Fiscal Year on all Prior Lien Bonds and Junior Lien Bonds then outstanding; but in no event shall Net Revenues ever be less than the amount required to establish and maintain the Prior Lien Bond Interest and Sinking Fund and the Prior Lien Bond Reserve Fund as hereinafter provided, to establish and maintain the Junior Lien Bond Interest and Sinking Fund and the Junior Lien Bond Reserve Fund as hereinafter provided and, to the extent that funds for such purpose are not other- wise available, to pay all other outstanding obligations payable from the Net Revenues of the System as and when the same become due. The City will not grant or permit any free service from the System except for public buildings and institutions oper- ated by the City. -12- Section 5 .3 : Special Funds. The following special Funds are hereby created and shall be established, maintained and accounted for as hereinafter provided so long as any of the Junior Lien Bonds remain outstanding: (a) Waterworks and Sewer System Revenue Fund (the "Revenue Fund" ) ; (b) Prior Lien Waterworks and Sewer System Revenue Bond Interest and Sinking Fund (the "Prior Lien Bond Interest and Sinking Fund" ) ; (c) Prior Lien Waterworks and Sewer System Revenue Bond Reserve Fund (the "Prior Lien Bond Reserve Fund" ) ; (d) Junior Lien Waterworks and Sewer System Revenue Bond Interest and Sinking Fund (the "Junior Lien Bond Interest and Sinking Fund" ) ; and (e) Junior Lien Waterworks and Sewer System Revenue Bond Reserve Fund (the "Junior Lien Bond Reserve Fund" ) . The Revenue Fund shall be maintained as a separate account on the books of the City. The Prior Lien Bond Interest and Sinking Fund, the Prior Lien Bond Reserve Fund, the Junior Lien Bond Interest and Sinking Fund and the Junior Lien Bond Reserve Fund shall be maintained in an official depository bank of the City separate and apart from all other funds and accounts of the City. The Prior Lien Bond Interest and Sink- ing Fund and the Prior Lien Bond Reserve Fund shall constitute trust funds which shall be held in trust for the holders of the Prior Lien Bonds and the proceeds of which (except for interest income, which shall be transferred to the Revenue Fund) shall be pledged to the payment of the Prior Lien Bonds . The Junior Lien Bond Interest and Sinking Fund and the Junior Lien Bond Reserve Fund shall constitute trust funds which shall be held in trust for the benefit of the holders of the Junior Lien Bonds and the proceeds of which (except for inter- est income, which shall be transferred to the Revenue Fund) shall be and are hereby pledged to the payment of the Junior Lien Bonds. All- of the Funds named above shall be used solely as herein provided so long as any Junior Lien Bonds remain outstanding. -13- e Section 5.4: Flow of Funds. All Gross Revenues of the System shall be deposited as collected into the Revenue Fund. Moneys from time to time on deposit to the credit of the Revenue Fund shall be applied as follows in the following order of priority: (a) First, to pay Maintenance and Operation Expenses and to provide by encumbrance for the payment of all obligations incurred by the City for Maintenance and Operation Expenses which may include an operating reserve equal to one month' s estimated Maintenance and Operation Expenses. (b) Second, subject to the restrictions contained in Section 5 . 5 hereof, to make all deposits into the Prior Lien Bond Interest and Sinking Fund required by any ordinance authorizing the issuance of Prior Lien Bonds . (c) Third, subject to the restrictions contained in Section 5 . 6 hereof, to make all deposits into the Prior Lien Bond Reserve Fund required by any ordinance authorizing the issuance of Prior Lien Bonds . (d) Fourth, to make all deposits into the Junior Lien Bond Interest and Sinking Fund required by this Ordinance and any ordinance authoriz- ing the issuance of Additional Junior Lien Bonds . (e) Fifth, to make all deposits into the Junior Lien Bond Reserve Fund required by this Ordi- nance and any ordinance authorizing the issu- ance of Additional Junior Lien Bonds. ( f) Sixth, for any lawful purpose. Section 5.5 : Prior Lien Bond Interest and Sinking Fund. After making all required 'payments and provision for payment of Maintenance and Operation Expenses , there shall be trans- ferred in approximately equal monthly deposits into the Prior Lien Bond Interest and Sinking Fund from the Revenue Fund such amounts on such dates as may be provided in the ordi- nances authorizing the issuance of the Prior Lien Bonds in -14- C order to provide for the full and timely payment of all prin- cipal of, interest on and any redemption premiums on all such Prior Lien Bonds and all expenses of paying same. Section 5 .6: Prior Lien Bond Reserve Fund. On or before the last business day of each month, after making all required payments and provision for payment of Maintenance and Operation Expenses and after making all required transfers into the Prior Lien Bond Interest and Sinking Fund, there may be trans= ferred into the Prior Lien Bond Reserve Fund from the Revenue Fund amounts up to one-sixtieth (1/60th) of the Prior Lien Bond Reserve Fund Requirement unless or until there has been accumulated in the Prior Lien Bond Reserve Fund money and investments in an aggregate amount not to exceed the Prior Lien Bond Reserve Fund Requirement, as may be more fully provided in the ordinances authorizing the Prior Lien Bonds . After such amount has been accumulated in the Prior Lien Bond Reserve Fund and so long thereafter as such Fund contains such amount, no further deposits shall be required to be made into the Prior Lien Bond Reserve Fund, and any excess amounts in such Fund may be transferred to the Revenue Fund. But if and whenever the balance in the Prior Lien Bond Reserve Fund is reduced below such amount, monthly deposits into such Fund shall be resumed and continued in amounts up to one-sixtieth (1/60th) of the Prior Lien Bond Reserve Fund Requirement until the Prior Lien Bond Reserve Fund has been restored to such amount. The Prior Lien Bond Reserve Fund shall be used to pay the principal of and interest on the Prior Lien Bonds at any time when there is not sufficient money available in the Prior Lien Bond Interest and Sinking Fund for such purpose and it may be used finally to pay and retire the last Prior Lien Bonds to mature or be redeemed. Section 5 .7: Junior Lien Bond Interest and Sinking Fund. On or before the last business day of each month so long as any Junior Lien Bonds remain outstanding, after making all required payments and provision for payment of Maintenance and Operation Expenses, and after making all required transfers into the Prior Lien Bond Interest and Sinking Fund and the Prior Lien Bond Reserve Fund there shall be transferred into the Junior Lien Bond Interest and Sinking Fund from the Revenue Fund the following amounts : (i ) Such amounts, in approximately equal monthly installments , as will be suffi- cient to accumulate the amount required to pay the interest scheduled to become -15- c due on the Junior Lien Bonds on the next interest payment date; and (ii ) such amounts, in approximately equal monthly installments, as will be suffi- cient to accumulate the amount required to pay the next maturing principal of the Junior Lien Bonds, including the princi- pal amounts of, and any redemption pre- miums on, any Junior Lien Bonds payable as a result of the operation or exercise of any mandatory or optional redemption provision contained in this Ordinance or in any ordinance authorizing the issuance of Additional Junior Lien Bonds . Whenever the total amounts on deposit to the credit of the Junior Lien Bond Interest and Sinking Fund and the Junior Lien Bond Reserve Fund shall be equivalent to the sum of the aggregate principal amount of all outstanding Junior Lien Bonds plus the aggregate amount of all interest accrued and to accrue thereon, no further payments need be made into the Junior Lien Bond Interest and Sinking Fund or the Junior Lien Bond Reserve Fund, and such Junior Lien Bonds shall not be regarded as being outstanding except for the purpose of being paid with the moneys on deposit in such Funds . Moneys depos- ited to the credit of the Junior Lien Bond Interest and Sink- ing Fund (except for interest income, which shall be trans- ferred to the Revenue Fund) shall be used solely for the purpose of paying principal (at maturity or prior redemption or to purchase Junior Lien Bonds in the open market to be credited against mandatory redemption requirements ) , interest and redemption premiums on the Junior Lien Bonds, plus all bank charges and other costs and expenses relating to such payment. On or before each principal and/or interest payment date on the Junior Lien Bonds, the City shall transfer from the Junior Lien Bond Interest and Sinking Fund to the paying agent for the Junior Lien Bonds an amount equal to the prin- cipal of interest on and any redemption premiums payable on the Junior Lien Bonds on such date, together with an amount equal to all bank charges and other costs and expenses relat- ing to such payment. The paying agent shall totally destroy all paid Junior Lien Bonds and all coupons and shall provide the City with an appropriate certificate of destruction. Section 5.8 : Junior Lien Bond Reserve Fund. On or before the last business day of each month so long as any -16- c Junior Lien Bonds remain outstanding, after making all required payments and provision for payment of Maintenance and Operation Expenses and after making all required transfers into the Prior Lien Bond Interest and Sinking Fund, the Prior Lien Bond Reserve Fund and the Junior Lien Bond Interest and Sinking Fund, there shall be transferred into the Junior Lien Bond Reserve Fund from the Revenue Fund amounts equal to at least one-sixtieth (1/60th) of the Junior Lien Bond Reserve Fund Requirement unless or until there has been accumulated in the Junior Lien Bond Reserve Fund money and investments in an aggregate amount at least equal to the Junior Lien Bond Reserve Fund Requirement. After such amount has accumulated in the Junior Lien Bond Reserve Fund and so long thereafter as such Fund contains such amount, no further deposits shall be required to be made into the Junior Lien Bond Reserve Fund, and any excess amounts in the Fund may be transferred to the Revenue Fund. But if and whenever the balance in the Junior Lien Bond Reserve Fund is reduced below such amount, monthly deposits into such Fund shall be resumed and continued in amounts at least equal to one-sixtieth (1/60th) of Junior Lien Bond Reserve Fund Requirement until the Junior Lien Bond Reserve Fund has been restored to such amount. The Junior Lien Bond Reserve Fund shall be used to pay the_principal of and interest on the Junior Lien Bonds at any time when there is not suffi- cient money available in the Junior Lien Bond Interest and Sinking Fund for such purpose and it may be used finally to pay and retire the last Junior Lien Bonds to mature or be redeemed. Section 5. 9: Deficiencies in Funds . If in any month there shall not be deposited into any Fund maintained pur- suant to this Article the full amounts required herein, amounts equivalent to such deficiency shall be set apart and paid into such Fund or Funds from the first available and unallo- cated moneys in the Revenue Fund, and such payment shall be in addition to the amounts otherwise required to be paid into such Funds during any succeeding month or months . To the extent necessary, the rates and charges for the System shall be increased to make up for any such deficiencies. Section 5.10: Investment of Funds; Transfer of Invest- ment Income. (a) Money in the Revenue Fund, the Prior Lien Bond Interest and Sinking Fund, the Prior Lien Bond Reserve Fund, the Junior Lien Bond Interest and Sinking Fund, and the Junior Lien Bond Reserve Fund may, at the option of the City, be invested in time deposits or certificates of deposit secured in the manner required by law for public funds, or be invested -17- c in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America, in obligations of any agencies or instrumentalities of the United States of America; provided that all such deposits and investments shall be made in such manner (which may include repurchase agreements for such investments) that the money required to be expended from any Fund will be available at the proper time or times, and provided further that in no event shall such deposits or investments of moneys in the Prior Lien Bond Reserve Fund or the Junior Lien Bond Reserve Fund mature later than the final maturity date of the Prior Lien Bonds or the Junior Lien Bonds, as the case may be. All such investments shall be valued in terms of current market value no less frequently than the last _ business day of the City' s Fiscal Year, except that any direct obligations of the United States of America - State and Local Government Series shall be continuously valued at their par value or principal face amount. Any obligation in which money is so invested shall be kept and held in an official depository of the City, except as hereinafter provided. For purposes of maximizing investment returns, money in such Funds may be invested, together with money in other Funds or with other money of the City, in common investments of the kind described above, or in a common pool of such investments which shall be kept and held at an official depository of the City, which shall not be deemed to be or constitute a comming- ling of such money or Funds provided that safekeeping receipts or certificates of participation clearly evidencing the invest- ment or investment pool in which such money is invested and the share thereof purchased with such money or owned by such Fund are held by or on behalf of each such Fund. If necessary, such investments shall be promptly sold to prevent any default. (b) All interest and income derived from such deposits and investments shall be transferred or credited to the Revenue Fund on or before each September 30, and shall constitute Gross Revenues of the System. Section 5 . 12 : Security for Uninvested Funds . So long as any Junior Lien Bonds remain outstanding, all uninvested moneys on deposit in, or credited to, the Revenue Fund, the Prior Lien Bond Interest and Sinking Fund, the Prior Lien Bond Reserve Fund, the Junior Lien Bond Interest and Sinking Fund and the Junior Lien Bond Reserve Fund shall be secured by the pledge of security, as provided by law for cities in the State of Texas . -18- ARTICLE VI ADDITIONAL BONDS Section 6 . 1 : Prior Lien Bonds and Additional Junior Lien Bonds . The City reserves the right to issue, for any lawful purpose, including the refunding of any previously issued Prior Lien Bonds or Junior Lien Bonds or any other bonds or obligations of the City issued in connection with the System or payable from Net Revenues, one or more series of (i ) Prior Lien Bonds payable from, and secured by a lien on, the Net Revenues of the System prior and superior to the lien securing the Junior Lien Bonds, and (ii ) Additional Junior Lien Bonds on a parity with the Series 1981 Bonds and any Additional Junior Lien Bonds then outstanding; provided, however, that no Prior Lien Bonds or Additional Junior Lien Bonds may be issued unless : (a) All Prior Lien Bonds and Additional Junior Lien Bonds shall mature only on September 1 and interest thereon shall be payable only on March 1 and September 1; (b) The Prior Lien Bond Interest and Sinking Fund and the Prior Lien Bond Reserve Fund (and, for the issuance of Additional Junior Lien Bonds, the Junior Lien Bond Interest and Sinking Fund and the Junior Lien Bond Reserve Fund) each contains the amount of money then required to be on deposit therein or the fraction thereof then required to have been accumulated therein; (c) Except as provided in paragraph (e) below, for either the preceding Fiscal Year or any consecu- tive 12-month period out of the 18-month period immediately preceding the month in which the bond ordinance authorizing such Prior Lien Bonds or Additional Junior Lien Bonds, as the case may be, is adopted (the "Base Period" ) either: (1 ) Net Earnings are certified by the Finance Officer of the City to have been equal to at least 125% of the average annual principal and interest requirements of all Prior Lien Bonds -19- C and Junior Lien Bonds, after giving effect to the issuance of the Prior Lien Bonds or Additional Junior Lien Bonds to be issued; or (2 ) Net Earnings adjusted to give effect to any rate increase placed into effect at least 60 days prior to the adoption of the ordinance author- izing the Prior Lien Bonds or Addi- tional Junior Lien Bonds, as the case may be, to the same extent as if such rate increase had been placed into effect prior to the commence- ment of the Base Period, would have been equal to at least the amounts required in paragraph (1 ) above, as certified by an independent firm of consulting engineers or independent firm of certified public accountants; provided, however, that this requirement shall not not apply to the issuance of any series of Prior Lien Bonds or Additional Junior Lien Bonds for refunding purposes that will not have the result of increasing the average annual principal and interest requirements on either the Prior Lien Bonds or the Junior Lien Bonds; and (d) Provision is made in the bond ordinance autho- rizing the Prior Lien Bonds or Additional Junior Lien Bonds then proposed to be issued for (1 ) additional payments into the Prior Lien Bond Interest and Sinking Fund or Junior Lien Bond Interest and Sinking Fund, as the case may be, sufficient to provide for the payment of the increased principal of and interest on the Prior Lien Bonds or Junior Lien Bonds resulting from the issuance of such Prior Lien Bonds or Additional Junior Lien Bonds, and (2 ) additional payments into the Prior Lien Bond Reserve Fund or Junior Lien Bond Reserve Fund, as the case may be, suf- ficient to provide for the accumulation therein of the increased reserve requirement resulting from the issuance of such Prior Lien Bonds or -20- Additional Junior Lien Bonds, by not later than 60 months from the date of issuance of such Prior Lien Bonds or Additional Junior Lien Bonds. (e) The City expressly reserves the right to issue $17, 500, 000 principal amount of Prior Lien Bonds for the purpose of improving, enlarging, extending and repairing the System without demonstrating compliance with the requirements of Section 6 .1(c) hereof, and to issue, sell and deliver such Prior Lien Bonds upon such terms and conditions as shall be conclusively determined by the City Council to be in the best interests of the City. For purposes of Section 6 . 1(c) , the term "Net Earnings" shall mean all of the Net Revenues of the System, except that in calculating Net Revenues there shall not be deducted as Maintenance and Operation Expenses any charge, disbursement or expenditure for repairs, extensions or otherwise which, under standard accounting practice, constitutes a capital expenditure. Section 6.2 : Subordinate Lien Obligations . The City reserves the right to issue, for any lawful purpose, bonds, notes or other obligations secured in whole or in part by liens on the Net Revenues that are junior and subordinate to the liens on Net Revenues securing payment of the Prior Lien Bonds and the Junior Lien Bonds . Such subordinate lien obli- gations may be further secured by any other source of payment lawfully available for such purposes . Section 6 .3 : Special Project Bonds . The City reserves the right to issue revenue bonds secured by liens on and pledges of revenues and proceeds derived from Special Proj- ects . ARTICLE VII COVENANTS AND PROVISIONS RELATING TO ALL JUNIOR LIEN BONDS Section 7. 1: Punctual Payment of Prior Lien Bonds and Junior Lien Bonds . The City will punctually pay or cause to be paid the interest on and principal of all Prior Lien Bonds -21- f and Junior Lien Bonds according to the terms thereof and will faithfully do and perform, and at all times fully observe, any and all covenants, undertakings, stipulations and provi- sions contained in this Ordinance and in any ordinance autho- rizing the issuance of such Bonds . Section 7 .2: Power to Own and Operate System; Ratemak- ing Power. The City hereby covenants and represents that it has all necessary power and authority to own and operate the System as herein described and provided and that it possess- es, and shall exercise, all necessary power and authority to establish, fix, increase, impose and collect rates and charges for the use and services of the System in the amounts required to comply with the covenants and provisions contained herein. Section 7 .3 : Maintenance of System. So long as any Junior Lien Bonds remain outstanding, the City covenants that it will at all times maintain the System, or within the lim- its of its authority cause the same to be maintained, in good condition and working order and will operate the same, or cause the same to be operated, in an efficient and economical manner at a reasonable cost and in accordance with sound business principles . In operating and maintaining the Sys- tem, the City will comply with all contractual provisions and agreements entered into by it and with all valid rules, regu- lations, directions or order of any governmental, administra- tive or judicial body promulgating same, noncompliance with which would materially and adversely affect the operation of the System. Section 7 .4: Sale or Encumbrance of System. So long as any Junior Lien Bonds remain outstanding, the City will not sell, dispose of or, except as permitted in Article VI , further encumber the System; provided, however, that this provision shall not prevent the City from disposing of any portion of the System which is being replaced or is determined by the City Council to be obsolete, worn out, surplus or no longer needed for the proper operation of the System. Any agreement pursuant to which the City contracts with a person, corpora- tion, municipal corporation or political subdivision to oper- ate the System or to lease and/or operate all or part of the System shall not be considered as an encumbrance of the System. Section 7 . 5: Insurance. The City further covenants and agrees that it will keep the System insured with insurers of good standing against risks, accidents or casualties against -22- c which and to the extent customarily insured against by polit- ical subdivisions of the State of Texas operating similar properties, to the extent that such insurance is available. All net proceeds of such insurance shall be applied to repair or replace the insured property that is damaged or destroyed, or shall be used to redeem outstanding Prior Lien Bonds, Junior Lien Bonds or other obligations payable from revenues of the System. The cost of all such insurance, together with any additional insurance, shall be a part of the Maintenance and Operation Expenses. Section 7 . 6 : Accounts, Records, and Audits. So long as any Junior Lien Bonds remain outstanding, the City covenants and agrees that it will maintain a proper and complete system of records and accounts pertaining to the operation of the System in which full, true and proper entries will be made of all dealings, transactions , business and affairs which in any way affect or pertain to the System or the Gross Revenues or the Net Revenues thereof. The City shall after the close of each Fiscal Year cause an audit report of such records and accounts to be prepared by an independent certified public accountant or independent firm of certified public accoun- tants . Each year promptly after such audit report is pre- pared, the City shall furnish a copy thereof without cost to the Municipal Advisory Council of Texas, the major municipal rating agencies and any holders of Junior Lien Bonds who shall request same. All expenses incurred in preparing such audits shall be Maintenance and Operation Expenses . Section 7 . 7: Competition. To the extent it legally may, the City will not grant any franchise or permit for the acquisition, construction or operation of any competing facili- ties which might be used as a substitute for the System and will prohibit the operation of any such competing facilities . Section 7.8: Pledge and Encumbrance of Net Revenues. The City covenants and represents that it has the lawful power to create a lien on and to pledge the Net Revenues to secure the payment of the Junior Lien Bonds and has lawfully exercised such power under the Constitution and laws of the State of Texas . The City further covenants and represents that, other than to the payment of the Prior Lien Bonds and the Junior Lien Bonds, the Net Revenues are not and will not be made subject to any other lien, pledge or encumbrance to secure the payment of any debt or obligation of the City, unless such lien, pledge or encumbrance is junior and sub- -23- Junior Lien Bonds plus interest thereon to the date of matu- rity or redemption; provided, however, that if any of such Junior Lien Bonds are to be redeemed prior to their respec- tive dates of maturity, provision shall have been made for giving notice of redemption as provided in the ordinance authorizing such Junior Lien Bonds . Upon such deposit, such Junior Lien Bonds and coupons appertaining thereto shall no longer be regarded to be outstanding or unpaid. Section 7 . 11: Legal Holidays . In any case where the date of maturity of interest on or principal of the Junior Lien Bonds or the date fixed for redemption of any Junior Lien Bonds shall be in the City a legal holiday or a day on which a .paying agent for the Junior Lien Bonds is authorized by law to close, then payment of interest or principal need not be made on such date but may be made on the next suc- ceeding day not in the City a legal holiday or a day on which such paying agent is authorized by law to close with the same force and effect as if made on the date of maturity or the date fixed for redemption and no interest shall accrue for the period from the date of maturity or redemption to the date of actual payment. Section 7 .12 : Unavailability of Authorized Publica- tion. If, because of the temporary or permanent suspension of any newspaper, journal or other publication, or, for any reason, publication of notice cannot be made meeting any requirements herein established, any notice required to be published by the provisions of this Ordinance shall be given in such other manner and at such time or times as in the judgment of the City or of the paying agent for the Junior Lien Bonds shall most effectively approximate such required publication and the giving of such notice in such manner shall for all purposes of this Ordinance be deemed to be in compliance with the requirements for publication thereof. Section 7 . 13 : Paying Agent May Own Junior Lien Bonds. The paying agent for the Junior Lien Bonds, in its individual or any other capacity, may become a holder or pledgee of the Junior Lien Bonds with the same rights it would have if it was not paying agent. Section 7. 14: No Recourse Against City Officials. No recourse shall be had for the payment of principal of or interest on any Junior Lien Bonds or for any claim based thereon or on this Ordinance against any official of the City or any person executing any Junior Lien Bonds. -25- r G ordinate to the lien and pledge securing payment of the Prior Lien Bonds and the Junior Lien Bonds . Section 7. 09: Bondholders Remedies. This Ordinance shall constitute a contract between the City and the holders of the Junior Lien Bonds from time to time outstanding and this Ordinance shall be and remain irrepealable until the Junior Lien Bonds and the interest thereon shall be fully paid or discharged or provision therefor shall have been made as provided herein. In the event of a default in the payment of the principal of or interest on any of the Junior Lien Bonds or a default in the performance of any duty or covenant provided by law or in this Ordinance, the holder or holders of any of the Junior Lien Bonds or of any of the appurtenant interest coupons may pursue all legal remedies afforded by the Constitution and laws of the State of Texas to compel the City to remedy such default and to prevent further default or defaults. Without in any way limiting the generality of the foregoing, it is expressly provided that any holder of any of the Junior Lien Bonds or of any of said coupons may at law or in equity, by suit, action, mandamus , or other proceedings, enforce and compel performance of all duties required to be performed by the City under this Ordinance, including the making and collection of reasonable and sufficient rates and charges for the use and services of the System, the deposit of the revenues thereof into the special funds herein pro- vided, and the application of such revenues in the manner required in this Ordinance. Section 7 . 10: Defeasance. The City may def ease the provisions of this Ordinance and discharge its obligation to the holders of any or all of the Junior Lien Bonds and cou- pons appertaining thereto to pay principal, interest and redemption premium (if any) thereon in any manner permitted by law, including by depositing with any paying agent for such Junior Lien Bonds, with any national bank having trust powers and having combined capital and surplus of at least $5 million or with the State Treasurer of the State of Texas either: (i ) cash in an amount equal to the principal amount and redemption premium, if any, of such Junior Lien Bonds plus interest thereon to the date of maturity or redemption, or (ii) pursuant to an escrow or trust agreement, cash and/or direct obligations of, or obligations the principal and interest of which are guaranteed by; the United States of America, in principal amounts and maturities and bearing interest at rates sufficient to provide for the timely payment of the principal amount and redemption premium, if any, of such -24- . t ARTICLE VIII PROVISIONS CONCERNING SALE AND APPLICATION OF PROCEEDS OF SERIES 1981 BONDS Section 8 . 1 : Sale of Series 1981 Bonds. Sale of the Series 1981 Bonds is hereby awarded to Underwood, Neuhaus & Co. , Incorporated for the sum of $3 , 599, 750 plus accrued interest on the Series 1981 Bonds, which is equal to the sum of the principal amount of the Series 1981 Bonds less an underwriting discount of $140, 250, plus accrued interest on all of the Series 1981 Bonds to the date of delivery, in accordance with the terms of a bond purchase agreement pre- sented to the City concurrently with the adoption of this Ordinance, which bond purchase agreement is hereby accepted, approved and authorized and the Mayor is hereby authorized and directed to enter into and execute said bond purchase agreement on behalf of the City. It is hereby found and de- clared that the above price and terms of sale of the Series 1981 Bonds are the most advantageous reasonably obtainable by the City. Section 8 .2 : Approval, Registration and Delivery. The Mayor is hereby authorized to have control and custody of the Series 1981 Bonds and all necessary records and proceedings pertaining thereto pending their delivery, and the Mayor and other officers and employees of the City are hereby autho- rized and instructed to make such certifications and to exe- cute such instruments as may be necessary to accomplish the delivery of the Series 1981 Bonds and to assure the investi- gation, examination, and approval thereof by the Attorney General of the State of Texas and their registration by the State Comptroller of Public Accounts . Upon registration of the Series 1981 Bonds, the Comptroller of Public Accounts (or a deputy designated in writing to act for him) shall be request- ed to sign manually the Comptroller' s Registration Certificate prescribed herein to be printed and endorsed on each Series 1981 Bond and the seal of the Comptroller shall be impressed or printed or lithographed. thereon. The Mayor shall be further authorized to make such agreements with the purchasers of the Series 1981 Bonds as may be necessary to assure that the same will be delivered to such purchasers in accordance with the terms of sale at the earliest practicable date after the adoption of this Ordinance. -26- Section 8 .3 : Offering Documents. The City Council hereby ratifies, authorizes and approves, in connection with the sale of the Series 1981 Bonds, the preparation and dis- tribution of the Preliminary Official Statement and the final Official Statement dated November 24, 1981, and the Mayor and City Clerk are hereby authorized and directed to execute such final Official Statement in multiple counterparts on behalf of the City. Section 8 .4: Application of Proceeds of Series 1981 Bonds. Proceeds from the sale of the Series 1981 Bonds shall, promptly upon receipt by the City, be applied as follows: (a) Accrued interest shall be deposited into the Junior Lien Bond Interest and Sinking Fund. (b) The remaining proceeds from the sale of the Series 1981 Bonds shall be applied, together with other funds of the City, if any, to establish an Escrow Fund to refund the Refunded Bonds, as more fully provided in an ordinance adopted concurrently herewith, and, to the extent not other- wise provided for, to pay all expenses arising in connection with the issuance of the Series 1981 Bonds, the establishment of such Escrow Fund and the refunding of the Refunded Bonds. Any proceeds of the Series 1981 Bonds remaining after making all such deposits and payments shall be deposited into the Junior Lien Bond Interest and Sinking Fund. Section 8 .5: No Arbitrage. The City certifies that based upon all facts and estimates now known or reasonably expected to be in existence on the date the Series 1981 Bonds are delivered and paid for, the City reasonably expects that the proceeds of the Series 1981 Bonds will not be used in a manner that would cause the Series 1981 Bonds or any portion thereof to be an "arbitrage bond" under Section 103 (c) (2 ) of the Internal Revenue Code of 1954, as amended, and the regula- tions prescribed thereunder. Furthermore, all officers, employees and agents of the City are authorized and directed to provide certifications of facts and estimates that are material to the reasonable expectations of the City as of the date the Series 1981 Bonds are delivered and paid for. In particular, all or any officers of the City are authorized to certify for the City the facts and circumstances and reason- able expectations of the City on the date the Series 1981 Bonds are delivered and paid for regarding the amount and use of the proceeds thereof. Moreover, the City covenants that -27- f it shall make such use of the proceeds of the Series 1981 Bonds, regulate investments of proceeds thereof and take such other and further actions as may be required so that the Series 1981 Bonds shall not be "arbitrage bonds" under Sec- tion 103(c) (2 ) of the Internal Revenue Code of 1954, as amended, and regulations prescribed from time to time there- under. ARTICLE IX MISCELLANEOUS Section 9 .1: Further Procedures . The Mayor, and the City Clerk and other appropriate officials of the City are hereby authorized and directed to do any and all things nec- essary and/or convenient to carry out the terms of this Ordi- nance. Section 9.2 : Severability. If any Section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unen- forceability of such Section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. Section 9 .3 : Open Meeting. It is hereby found, deter- mined and declared that a sufficient written notice of the date, hour, place and subject of the meeting of the City Council at which this Ordinance was adopted was posted at a place convenient and readily accessible at all times to the general public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Article 6252-17, Vernon' s Texas Civil Statutes, as amended, and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 9 .4: Declaration of Emergency. It is hereby officially found and determined that a case of emergency and urgent public necessity exists which requires the holding of the meeting at which this Ordinance is passed and further requires that this Ordinance be passed finally and take effect immediately on the date of its introduction, such -28- Q emergency and urgent public necessity being that the proceeds from the sale of the Series 1981 Bonds are required as soon as possible and without delay for the purposes set forth herein. Secton 9.5: Repealer. All orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent of such inconsistency. PASSED AND APPROVED THIS 24th day of November, 1981. ATTEST: Mayor C"4t�City Clerk e�' [SEAL] Approved as to Form: i 1 City Attorney -29-