HomeMy WebLinkAboutORD 85-84 ORDINANCE AUTHORIZING THE ISSUANCE OF $15,700, 000
THE CITY OF BEAUMONT STREET AND DRAINAGE
IMPROVEMENT BONDS, SERIES 1985
THE STATE OF TEXAS
COUNTY OF JEFFERSON
THE CITY OF BEAUMONT
WHEREAS, at an election held in and throughout The City
of Beaumont, on April 5, 1980, $33 , 000 , 000 tax bonds were
duly and favorably voted for the purpose of constructing
permanent public improvements in and for said City, to-wit:
the construction and improvement of the roads, bridges and
streets of such City, including, but not by way of
limitation, related drainage facilities, related traffic
control devices and the acquisition of rights-of-way; and
WHEREAS, the City has issued, sold and delivered
$20 , 000 ,000 of said street improvement bonds, leaving the
remaining $13, 000,000 bonds to be issued, sold and delivered
at a later date; and
WHEREAS, the City Council of the City has determined to
issue and deliver $11 ,000 , 000 street improvement bonds as a
portion and the second installment of the total authorized
$33 , 000 ,000 bonds, leaving the remaining $2, 000, 000 bonds to
be issued, sold and delivered at a later date; and
WHEREAS, at an election held in the City on March 22,
1983 , $16 ,000, 000 tax bonds were duly and favorably voted
for the purpose of constructing permanent public
improvements in and for said City, to-wit: drainage
improvements; and
WHEREAS, the City Council of the City has determined to
issue and deliver $4, 700 , 000 drainage improvement bonds as a
portion and the first installment of the total authorized
$16,000 ,000 bonds, leaving the remaining $11 , 300 ,000 bonds
to be issued, sold and delivered at a later date; and
WHEREAS, said City Council has decided to combine said
$11 , 000, 000 bonds authorized at the April 5, 1980 election
and said $4 ,700, 000 bonds authorized at the March 22, 1983
election into one issue of $15, 700 ,000 bonds; Now, Therefore
BE IT ORDAINED BY THE CITY OF BEAUMONT:
1 . Throughout this ordinance the following terms and
expressions as used herein shall have the meanings set forth
below:
The term "Bonds" or "Series 1985 Bonds" shall mean the
Series 1985 Bonds authorized in this Ordinance, unless the
context clearly indicates otherwise.
The term "City" shall mean The City of Beaumont, Texas .
The term "Interest and Sinking Fund" shall mean the
interest and sinking fund established by the City pursuant
to Section 6 of this Ordinance.
The term "Interest Payment Date" , when used in
connection with any Bond, shall mean March 1 , 1986, and each
September 1 and March 1 thereafter until maturity of such
Bond.
The term "Ordinance" as used herein and in the Bonds
shall mean this ordinance authorizing the Bonds .
The term "Owner" shall mean any person who shall be the
registered owner of any outstanding Bonds .
The term "Paying Agent" shall mean the Registrar.
The term "Record Date" shall mean August 15 for the
interest payments due on September 1 and February 15 for the
interest payments due on March 1 .
The term "Register" shall mean the books of registra-
tion kept by the Registrar in which are maintained the names
and addresses of and the principal amounts registered to
each Owner.
The term "Registrar" shall mean Texas Commerce Bank
National Association, Houston, Texas, and its successors in
that capacity.
2 . The Bonds shall be issued in fully registered
form, without coupons, in the total authorized aggregate
amount of Fifteen Million Seven Hundred Thousand Dollars
($15 , 700 , 000) for the following purposes:
$11,000,000 bonds for the purpose of constructing
permanent public improvements in and for said City,
to-wit: the construction and improvement of the roads,
bridges and streets of such City, including, but not by
way of limitation, related drainage facilities, related
traffic control devices and the acquisition of
rights-of-way; and
$4, 700,000 bonds for the purpose of constructing
permanent public improvements in and for said City,
to-wit: drainage improvements .
3 . (a) The Bonds shall be designated as the "THE
CITY OF BEAUMONT STREET AND DRAINAGE IMPROVEMENT BONDS,
SERIES 1985, " and shall be dated September 1 , 1985 . The
Bonds shall bear interest from the later of September 1 ,
1985, or the most recent Interest Payment Date to which
interest has been paid or duly provided for, calculated on
the basis of a 360 day year of twelve 30 day months,
interest payable on March 1, 1986 , and semiannually
thereafter on September 1 and March l of each year until
maturity.
(b) The Bonds shall be issued bearing the numbers, in
the principal amounts , and bearing interest at the rates set
forth in the following schedule, and may be transferred and
exchanged as set out in this Ordinance. The Bonds shall
mature, in accordance with this Ordinance, on September 1 in
each of the years and in the amounts set out in such
schedule. Bonds delivered in transfer of or in exchange for
other Bonds shall be numbered in order of their authenti-
cation by the Registrar, shall be in the denomination of
$5, 000 or integral multiples thereof, and shall mature on
the same date and bear interest at the same rate as the Bond
or Bonds in lieu of which they are delivered.
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Bond Principal Interest
Number Year Amount Rate
R- 1 1986 $ 475 ,000 9%
R- 2 1987 1 , 275 ,000 9%
R- 3 1988 1, 375 ,000 9%
R- 4 1989 1 , 475, 000 9%
R- 5 1990 1 , 600,000 9%
R- 6 1991 1 ,725 ,000 7. 75%
R- 7 1992 1 , 725 , 000 7 . 75%
R- 8 1993 1 ,875,000 8%
R- 9 1994 2 ,000,000 8 . 25%
R-10 1995 2 , 175, 000 8 . 25%
(c) The Bonds shall be signed by the Mayor of the City
and countersigned by the City Clerk of the City, by their
manual, lithographed, or facsimile signatures, and the
official seal of the City shall be impressed or placed in
facsimile thereon. Such facsimile signatures on the Bonds
shall have the same effect as if each of the Bonds had been
signed manually and in person by each of said officers, and
such facsimile seal on the Bonds shall have the same effect
as if the official seal of the City had been manually
impressed upon each of the Bonds . If any officer of the
City whose manual or facsimile signature shall appear on the
Bonds shall cease to be such officer before the
authentication of such Bonds or before the delivery of such
Bonds, such manual or facsimile signature shall nevertheless
be valid and sufficient for all purposes as if such officer
had remained in such office.
(d) Only such Bonds as shall bear thereon either (i)
the manually executed registration certificate of the
Comptroller of Public Accounts of the State of Texas
substantially in the form provided in Section 5 (b) of this
Ordinance or (ii) a certificate of authentication, substan-
tially in the form provided in Section 5 (c) of this
Ordinance, manually executed by an authorized officer of the
Registrar, shall be entitled to the benefits of this
Ordinance or shall be valid or obligatory for any purpose.
Such duly executed certificate of authentication shall be
conclusive evidence that the Bond so authenticated was
delivered by the Registrar hereunder.
(e) The Registrar is hereby appointed as the paying
agent for the Bonds . The principal of the Bonds shall be
payable, without exchange or collection charges, in any coin
or currency of the United States of America which, on the
date of payment, is legal tender for the payment of debts
due the United States of America, upon their presentation
and surrender as they become due and payable, at the
principal corporate trust office of the Registrar. The
interest on each Bond shall be payable by check payable on
the Interest Payment Date, mailed by the Registrar on or
before each Interest Payment Date to the Owner of record as
of the Record Date, to the address of such Owner as shown on
the Register.
(f) The City, the Registrar and any other person may
treat the person in whose name any Bond is registered as the
absolute owner of such Bond for the purpose of making and
receiving payment of the principal thereof and for the
further purpose of making and receiving payment of the
interest thereon, and for all other purposes, whether or not
such Bond is overdue, and neither the City nor the Registrar
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shall be bound by any notice or knowledge to the contrary.
All payments made to the person deemed to be the Owner of
any Bond in accordance with this Section 3 (f) shall be valid
and effectual and shall discharge the liability of the City
and the Registrar upon such Bond to the extent of the sums
paid.
(g) So long as any Bonds remain outstanding, the
Registrar shall keep the Register at its principal corporate
trust office in which, subject to such reasonable regula-
tions as it may prescribe, the Registrar shall provide for
the registration and transfer of Bonds in accordance with
the terms of this Ordinance.
Each Bond shall be transferable only upon the presenta-
tion and surrender thereof at the principal corporate trust
office of the Registrar, duly endorsed for transfer, or
accompanied by an assignment duly executed by the registered
Owner or his authorized representative in form satisfactory
to the Registrar. Upon due presentation of any Bond for
transfer, the Registrar shall authenticate and deliver in
exchange therefor, within 72 hours after such presentation,
a new Bond or Bonds, registered in the name of the
transferee or transferees, in authorized denominations and
of the same maturity and aggregate principal amount and
bearing interest at the same rate as the Bond or Bonds so
presented.
All Bonds shall be exchangeable upon presentation and
surrender thereof at the principal corporate trust office of
the Registrar for a Bond or Bonds of the same maturity and
interest rate and in any authorized denomination, in an
aggregate principal amount equal to the unpaid principal
amount of the Bond or Bonds presented for exchange. The
Registrar shall be and is hereby authorized to authenticate
and deliver exchange Bonds in accordance with the provisions
of this Section 3 (g) . Each Bond delivered in accordance
with this Section 3 (g) shall be entitled to the benefits and
security of this Ordinance to the same extent as the Bond or
Bonds in lieu of which such Bond is delivered.
The City or the Registrar may require the Owner of any
Bond to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with
the transfer or exchange of such Bond. Any fee or charge of
the Registrar for such transfer or exchange shall be paid by
the City.
(h) All Bonds paid in accordance with this Ordinance,
and all Bonds in lieu of which exchange Bonds or replacement
Bonds are authenticated and delivered in accordance
herewith, shall be cancelled and destroyed upon the making
of proper records regarding such payment. The Registrar
shall furnish the City with appropriate certificates of
destruction of such Bonds .
(i) Upon the presentation and surrender to the
Registrar of a mutilated Bond, the Registrar shall
authenticate and deliver in exchange therefor a replacement
Bond of like maturity, interest rate and principal amount,
bearing a number not contemporaneously outstanding. The
City or the Registrar may require the Owner of such Bond to
pay a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection therewith and any
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other expenses connected therewith, including the fees and
expenses of the Registrar.
If any Bond is lost, apparently destroyed, or
wrongfully taken, the City, pursuant to the applicable laws
of the State of Texas and in the absence of notice or
knowledge that such Bond has been acquired by a bona fide
purchaser, shall execute and the Registrar shall authenti-
cate and deliver a replacement Bond of like maturity,
interest rate and principal amount, bearing a number not
contemporaneously outstanding, provided that the Owner
thereof shall have:
(1) furnished to the City and the Registrar
satisfactory evidence of the ownership of and the
circumstances of the loss, destruction or theft of such
Bond;
(2) furnished such security or indemnity as may
be required by the Registrar and the City to save them
harmless;
(3) paid all expenses and charges in connection
therewith, including, but not limited to, printing
costs, legal fees, fees of the Registrar and any tax or
other governmental charge that may be imposed; and
(4) met any other reasonable requirements of the
City and the Registrar.
If, after the delivery of such replacement Bond, a bona fide
purchaser of the original Bond in lieu of which such
replacement Bond was issued presents for payment such
original Bond, the City and the Registrar shall be entitled
to recover such replacement Bond from the person to whom it
was delivered or any person taking therefrom, except a bona
fide purchaser, and shall be entitled to recover upon the
security or indemnity provided therefor to the extent of any
loss, damage, cost or expense incurred by the City or the
Registrar in connection therewith.
If any such mutilated, lost, apparently destroyed or
wrongfully taken Bond has become or is about to become due
and payable, the City in its discretion may, instead of
issuing a replacement Bond, authorize the Registrar to pay
such Bond.
Each replacement Bond delivered in accordance with this
Section 3 (i) shall be entitled to the benefits and security
of this Ordinance to the same extent as the Bond or Bonds in
lieu of which such replacement Bond is delivered.
4 . (a) The Bonds shall be in substantially the
following form, with such additions, deletions and varia-
tions as may be necessary or desirable and permitted by this
Ordinance:
(Face of Bond)
United States of America
State of Texas
County of Jefferson
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NUMBER DENOMINATION
R- $
REGISTERED REGISTERED
THE CITY OF BEAUMONT
Street and Drainage Improvement Bond
Series 1985
INTEREST RATE: MATURITY DATE: ISSUE DATE: CUSIP:
September 1 , 1985
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
The City of Beaumont, in the County of Jefferson, State
of Texas (the "City") promises to pay to the Registered
Owner identified above, or registered assigns , on the date
specified above, upon presentation and surrender of this
bond at the principal corporate trust office of Texas
Commerce Bank National Association, Houston, Texas (the
"Registrar") , the principal amount identified above, payable
in any coin or currency of the United States of America
which on the date of payment of such principal is legal
tender for the payment of debts due the United States of
America, and to pay interest thereon at the rate shown
above, calculated on the basis of a 360 day year of twelve
30 day months, from the later of September 1, 1985 , or the
most recent interest payment date to which interest has been
paid or duly provided for. Interest on this bond is payable
by check payable on March 1 and September 1, beginning on
March 1, 1986 , mailed to the registered owner of record as
of the previous February 15 and March 15 as shown on the
books of registration kept by the Registrar.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS
SHALL HAVE THE SAME FORCE AND EFFECT AS IF SET FORTH AT THIS
PLACE.
IN WITNESS WHEREOF, this bond has been signed with the
manual or facsimile signature of the Mayor of the City and
countersigned with the manual or facsimile signature of the
City Clerk of the City, and the official seal of the City
has been duly impressed, or placed in facsimile, on this
bond.
(AUTHENTICATION CERTIFICATE) (SEAL) THE CITY OF BEAUMONT
Mayor
City Clerk
(Back Panel of Bond)
THIS BOND is one of a duly authorized issue of Bonds,
aggregating $15, 700, 000 (the "Bonds") , issued for the
following purposes :
$11 ,000,000 bonds for the purpose of constructing
permanent public improvements in and for said City,
to-wit: the construction and improvement of the roads,
bridges and streets of such City, including, but not by
way of limitation, related drainage facilities, related
traffic control devices and the acquisition of
rights-of-way; and
$4 , 700,000 bonds for the purpose of constructing
permanent public improvements in and for said City,
to-wit: drainage improvements,
and pursuant to an ordinance adopted by the City Council on
August 13 , 1985 (the "Ordinance") .
This Bond is transferable only upon presentation and
surrender at the principal corporate trust office of the
Registrar, duly endorsed for transfer or accompanied by an
assignment duly executed by the registered owner or his
authorized representative, subject to the terms and condi-
tions of the Ordinance.
The Bonds are exchangeable at the principal corporate
trust office of the Registrar for bonds in the principal
amount of $5, 000 or any integral multiple thereof, subject
to the terms and conditions of the Ordinance.
This Bond shall not be valid or obligatory for any
purpose or be entitled to any benefit under the Ordinance
unless this Bond either (i) is registered by the Comptroller
of Public Accounts of the State of Texas by registration
certificate endorsed hereon or (ii) is authenticated by the
Registrar by due execution of the authentication certificate
endorsed hereon.
IT IS HEREBY certified, recited and covenanted that
this Bond has been duly and validly issued and delivered;
that all acts, conditions and things required or proper to
be performed, to exist and to be done precedent to or in the
issuance and delivery of this Bond have been performed,
exist and have been done in accordance with law; and that
annual ad valorem taxes within the limits prescribed by law
sufficient to provide for the payment of the interest on and
principal of this Bond, as such interest comes due and such
principal matures, have been levied and ordered to be levied
against all taxable property in the City and have been
pledged irrevocably for such payment.
(b) Bonds No. R-1 through R-10 shall be registered by
the Comptroller of Public Accounts of the State of Texas , as
provided by law. The registration certificate of the
Comptroller of Public Accounts shall be printed on Bonds R-1.
through R-10 and shall be in substantially the following
form:
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I hereby certify that this bond has been examined,
certified as to validity, and approved by the Attorney
General of the State of Texas, and that this bond has been
registered by the Comptroller of Public Accounts of the
State of Texas.
WITNESS MY SIGNATURE AND SEAL this
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xxxxxxxxxx
Comptroller of Public Accounts
of the State of Texas
(SEAL)
(c) The following form of authentication certificate
shall be printed on the face of each of the Bonds:
Registration Date:
AUTHENTICATION CERTIFICATE
This bond is one of the bonds
described in and delivered
pursuant to the within-mentioned
Ordinance.
Texas Commerce Bank National Association
By
Authorized Signature
(d) The following form of assignment shall be printed
on the back of each of the Bonds:
ASSIGNMENT
For value received, the undersigned hereby sells,
assigns, and transfers unto
the within bond and hereby irrevocably constitutes and
appoints
attorney to transfer said bond on the books kept for regis-
tration thereof, with full power of substitution in the
premises .
DATED:
Signature Guaranteed:
Registered Owner
5 . The approving opinion of Vinson & Elkins, Houston,
Texas, and CUSIP Numbers may be printed on the Bonds, but
errors or omissions in the printing of such opinion or such
numbers shall have no effect on the validity of the Bonds.
6 . The proceeds from all taxes levied, assessed and
collected for and on account of the Bonds authorized by this
Ordinance shall be deposited, as collected, in a special
fund to be designated "The City of Beaumont Street and
Drainage Improvement Bonds, Series 1985, Interest and
Sinking Fund. " While said Bonds or any part of the
principal thereof or interest thereon remain outstanding and
unpaid, there is hereby levied and there shall be annually
assessed and collected in due time, form and manner, and at
the same time other City taxes are assessed, levied and
collected, in each year, beginning with the current year, a
continuing direct annual ad valorem tax upon all taxable
property in said City sufficient to pay the current interest
on said Bonds as the same becomes due, and to create and
provide a sinking fund of not less than two per cent (2%) of
the original principal amount of the Bonds or of not less
than the amount required to pay each installment of the
principal of said Bonds as the same matures, whichever is
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greater, full allowance being made for delinquencies and
costs of collection, and said taxes when collected shall be
applied to the payment of the interest on and principal of
said Bonds and to no other purpose. In addition, interest
accrued from the date of the Bonds until their delivery, and
premium if any, is to be deposited in such fund.
7 . After the Bonds to be initially issued shall have
been executed, it shall be the duty of the Mayor of the City
to deliver the Bonds to be initially issued and all
pertinent records and proceedings to the Attorney General of
Texas, for examination and approval by the Attorney General.
After the Bonds to be initially issued shall have been
approved by the Attorney General, they shall be delivered to
the Comptroller of Public Accounts of the State of Texas for
registration. Upon registration of the Bonds to be
initially issued, the Comptroller of Public Accounts (or a
deputy lawfully designated in writing to act for the
Comptroller) shall manually sign the Comptroller' s
Registration Certificate prescribed herein to be printed and
endorsed on the Bonds to be initially issued, and the seal
of said Comptroller shall be impressed, or placed in
facsimile, thereon.
8 . The Bonds , having been advertised for public sale
in accordance with the terms and provisions of Section 4,
Article IX of the City' s Charter, and bids having been
received pursuant thereto, it is hereby found and determined
that the bid of First City National Bank of Houston & Assoc.
Inc. , at a price equal to the principal amount thereof plus
accrued interest thereon from the date of such bonds to date
of actual delivery, plus a premium of $-0- is the best bid
received, and the sale of the Bonds to such bidder at such
price is hereby approved, subject to the approving opinions
of the Attorney General of the State of Texas and Vinson &
Elkins, Houston, Texas, Bond Counsel.
9 . The City certifies that based upon all facts and
estimates now known or reasonably expected to be in
existence on the date the Bonds initially issued are de-
livered and paid for, the City reasonably expects that the
proceeds of the Bonds will not be used in a manner that
would cause the Bonds or any portion of the Bonds to be an
"arbitrage bond" under Section 103 (c) (2) of the Internal
Revenue Code of 1954 , as amended, and the regulations pre-
scribed 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 Bonds initially issued are delivered and paid
for. In particular, all or any officers of the City are
authorized to certify for the City the facts and circum-
stances and reasonable expectations of the City on the date
the Bonds initially issued are delivered and paid for
regarding the amount and use of the proceeds of the Bonds .
Moreover, the City covenants that it shall make such use of
the proceeds of the Bonds, regulate investments of proceeds
of the Bonds and take such other and further actions as may
be required so that the Bonds shall not be "arbitrage bonds"
under Section 103 (c) (2) of the Internal Revenue Code of
1954 , as amended, and the regulations prescribed from time
to time thereunder.
10. It is hereby officially found and determined that
the meeting at which this Ordinance was adopted was open to
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the public, and public notice of the time, place and purpose
of said meeting was given, all as required by Article
6252-17, Vernon' s Texas Civil Statutes, as amended.
11. The Preliminary Official Statement and the
Official Statement prepared in the initial offering and sale
of the Bonds have been and are hereby authorized, approved
and ratified as to the form and content. The use of such
Preliminary Official Statement and such, Official Statement
in the reoffering of the Bonds by the Purchaser is hereby
approved, authorized and ratified. The proper officials of
the City are hereby authorized to execute and deliver a
certificate pertaining to such Preliminary Official
Statement and such Official Statement as prescribed therein,
dated as of the date of payment for and delivery of the
Bonds.
12. (a) The Registrar, by undertaking the performance
of the duties of the Registrar and in consideration of the
payment of fees and/or deposits of money pursuant to this
Ordinance and a Paying Agent/Registrar Agreement, accepts
and agrees to abide by the terms of this Ordinance and such
Agreement. The City hereby approves the Paying
Agent/Registrar Agreement.
(b) The City reserves the right to replace the Regis-
trar or its successor at any time. If the Registrar is
replaced by the City, the new Registrar shall accept the
previous Registrar' s records and act in the same capacity as
the previous Registrar. Any successor Registrar shall be
either a national or state banking institution and a
corporation organized and doing business under the laws of
the United States of America or any State authorized under
such laws to exercise trust powers and subject to super-
vision or examination by Federal or State authority.
PASSED AND APPROVED this 13th day of August, 1985.
M or
CITY OF BEAUMONT, TEXAS
ATTEST:
1
City C erk
CITY OF BEAUMONT, TEX S
(CITY SEAL)
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