HomeMy WebLinkAboutORD 63-AAItkeORDED
Vol.
l ►-13-1 qS�
AN ORDINANCE
AUTHORIZING THE ISSUANCE OF CITY OF BEAUMONT, TEXAS,
WATERWORKS SYSTEM REVENUE BONDS, SERIES 1956.,-!N THE
AMOUNT OF $2,800,000; PRESCRIBING THE TERMS AND CON-
DITIONS THEREOF;r MAKING PROVISION FOR THE PAYMENT OF
PRINCIPAL AND INTEREST THEREON; PROVIDING FOR THE
SALE THEREOF AND THE DISPOSITION OF THE PROCEEDS; 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 session at the regular meeting place thereof
within said City on the /3z,/day of 1956, with
the following members present, to -wit:
Jimmie P. Cokinos
Paul H. Anger
Dr. G. M. Brassard
Harry B. Mason
Mayor
Councilman, Ward 1
Councilman, Ward 2
Councilman; Ward -3
Councilman, Ward 4
James T. Garrard City Clerk
and the following members absent, to -wit:
when the following business was
transacted:
Councilman ,��,/ introduced an ordinance and moved
that it be adopted. The ordinance was read in full. The
motion for adoption was seconded by Councilman,
.and carried by the following vote: AYES: Councilmen Anger,
Brassard; Venza, and,Maso'n, and Mayor Cokinos. NOES: None.
The ordinance thus adopted follows:
AN ORDINANCE
AUTHORIZING THE ISSUANCE OF CITY OF BEAUMONT, TEXAS,
WATERWORKS SYSTEM REVENUE BONDS, SERIES 1956, IN THE
AMOUNT OF $2,800,000; PRESCRIBING THE TERMS AND CON-
DITIONS THEREOF; MAKING PROVISION FOR THE PAYMENT OF
PRINCIPAL AND INTEREST THEREON.; PROVIDING FOR THE
SALE THEREOF AND THE DISPOSITION OF THE PROCEEDS; AND
CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT
WHEREAS, the following described bonds payable from the
net revenues of the existing waterworks system of the City of
Beaumont, Texas, are outstanding (which bonds constitute the
total indebtedness chargeable against said system or its income),
to -wit:
Bonds Nos. 1128 to 2000, both inclusive, in the
denomination of $1,000 each, aggregating $873,000,
- out of the City of Beaumont Waterworks Improvement
and Extension Revenue Bonds, Series 1947, dated
September 1, 1947, approved by the Attorney General
of Texas on the 24th day of October, 1947, and regis-
_tered by the Comptroller of Public Accounts of Texas
under Registration No. 24473;
and
WHEREAS, Bonds Nos. 1128 to 1265, both inclusive, mature
September 1, 1957, and Bonds Nos. 1266 to 2000, both inclusive,
are redeemable, prior to maturity, on September 1, 1957; and
WHEREAS, funds are to be placed with the Treasurer of
the State of Texas under the provisions of Article 1118n-5,
Vernon's Texas Civil Statutes, as amended in 1955, as follows:
(a) from the net revenues derived from the operation of said
waterworks system, funds in an amount sufficient to pay
$73,000 in principal amount of said outstanding bonds, interest
payments falling due in 1957, charges of the paying agents,
and fees of the State Treasurer, and (b) from the sale of
a like principal amount of the bonds hereinafter authorized
by this ordinance, $800,000 for the payment of the principal
-2-
l -13-LRS
of said outstanding bonds in that amount, said outstanding bonds
to be paid on September 1, 1957 as follows: Bonds Nos. 11281265,
at maturity on such date, and Bonds Nos. 12662000 to be re-
deemed, prior to maturity, on such date (the details governing
the payment and redemption of said bonds and the deposit of
said funds being fixed in an ordinance heretofore adopted by
the City Council of the City of Beaumont); and
WHEREAS, at an election held within said City on the
29th day of August, 1956, more than a majority of the duly
qualified resident electors of said City who owned taxable
property within said City and who had duly rendered the same
for taxation, voting at said election, voted in favor of the
proposition of the issuance of $6,675,000 revenue bonds for
the purpose of improving and extending the City's existing
waterworks system; and
WHEREAS, it was provided in Section VI of the ordinance
calling said election and in the notice of said election that,
if the proposition were approved by a majority vote of the elec-
tors voting at said election, the same would constitute an
approval of the authority of the City Council to issue bonds to
retire or refund the outstanding waterworks revenue bonds under
any law of the State of Texas authorizing the same, including,
but not.limited to, Article 1118n-5, Vernon's Texas Civil
Statutes, as amended in 1955; and
WHEREAS, the City Council has determined that refunding
bonds should be issued as hereinafter provided in this ordinance,
and that a first installment of $2,000,000 of bonds should be
issued at this time out of the $6,675,000 bonds authorized at
-3-
-3 -A
the election held August 29, 1956 (leaving the remaining voted
bonds to be issued hereafter when needed to'accomplish the
voted purpose), and that said refunding bonds and $2,000,000
first installment bonds should be combined into one issue of
bonds; therefore
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Cani-i'nn T•
That the bonds of the City of Beaumont, Texas, be issued
in the principal sum of $2,800,000, to be known and designated as
"CITY OF BEAUMONT WATERWORKS SYSTEM REVENUE BONDS, SERIES 1956",
for the purpose of refunding $800,000 in principal amount of
the outstanding waterworks system revenue bonds, described in
the preamble to this ordinance, and for the purpose of improving
and extending the City's existing waterworks system, under and
in strict conformity with the Constitution and laws of the
State of Texas, particularly Articles 1111 to 1118, both in-
clusive, Vernon's Texas Civil Statutes, as amended, and as
authorized at a bond election held within said City on the 29th
day of August, 1956.
Section II:
That said bonds shall be dated September 1, 1956, shall
be numbered consecutively from 1 to 2800, both inclusive, shall
be in the denomination of $1,000 each, aggregating $2,800,000,
and shall become due and payable serially on the 1st day of
September in each of the years and in the respective amounts
shown in the following schedule, to -wit:
IL43
L3 ;�
11-13-1 �'SZ
Bonds Nos.
1 -
100
101
- 200
201
- 340
341
- 490
491
- 650
651
- 820
821
- 1000
1001
- 1190
1191
- 1390
1391
- 1600
1601
- 1820�o
1821
- 2050
2051
- 2290
2291
- 2540
2541
- 2800
Maturity
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969",-
1970
1971
Amount
$ 100,000
100,000
140,000
150,000
160,000
170,000
180,000
190,000
200,000
210,000
220,000
230,000
0240,000
250,000
260,000
The City of Beaumont expressly reserves the right to redeem
Bonds Nos. 1601 to 2800, both inclusive, of this issue, in whole
or in part, on September 1,1966, 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 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 by
publication of such notice one (1) time in a financial journal
of general circulation in the United States of America, which
notice shall be mailed to said banks and published in said
journal 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 when 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 otherwise accrue after the redemption date
on the bonds called for redemption shall terminate on the date
fixed for redemption.
-5-
Section III:
. j
0-13-1 qS�
That said bonds shall bear interest at the following
rates per annum, to -wit:
Bonds Nos. 1 to 1820 both inclusive, at
the rate of 4 o per annum;
timxYatvxv�&x_xx-.0x�m%x=num; and
Bonds Nos. 1821 to 2800, both inclusive, at
the rate of 3-7/8 o per annum,
interest payable March 1, 1957, and semi-annually thereafter
on September lst and March 1st of each year until the principal
sum thereof shall have been paid. Both principal of and interest
on said bonds shall be payable in lawful money of the United
States of America, without exchange or collection charges to
the owners or holders, at The First National Bank of Beaumont,
Beaumont, Texas, or at the option of the holder, at
Chase -Manhattan Bank, New York, N.Y. The principal of such
bonds shall be payable upon presentation and surrender of said
bonds as they respectively mature, and interest accruing on or
before the respective maturity dates of the bonds shall be
payable only upon presentation and surrender of the interest cou-
pons attached to said bonds as such coupons respectively become
due and payable.
Section IV:
That, in accordance with the provisions of Chapter 293,
Acts of the 54th Legislature of Texas, Regular Session, 1955,
(codified in Vernon's Texas Civil Statutes as 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
� T
Section III:
. j
0-13-1 qS�
That said bonds shall bear interest at the following
rates per annum, to -wit:
Bonds Nos. 1 to 1820 both inclusive, at
the rate of 4 o per annum;
timxYatvxv�&x_xx-.0x�m%x=num; and
Bonds Nos. 1821 to 2800, both inclusive, at
the rate of 3-7/8 o per annum,
interest payable March 1, 1957, and semi-annually thereafter
on September lst and March 1st of each year until the principal
sum thereof shall have been paid. Both principal of and interest
on said bonds shall be payable in lawful money of the United
States of America, without exchange or collection charges to
the owners or holders, at The First National Bank of Beaumont,
Beaumont, Texas, or at the option of the holder, at
Chase -Manhattan Bank, New York, N.Y. The principal of such
bonds shall be payable upon presentation and surrender of said
bonds as they respectively mature, and interest accruing on or
before the respective maturity dates of the bonds shall be
payable only upon presentation and surrender of the interest cou-
pons attached to said bonds as such coupons respectively become
due and payable.
Section IV:
That, in accordance with the provisions of Chapter 293,
Acts of the 54th Legislature of Texas, Regular Session, 1955,
(codified in Vernon's Texas Civil Statutes as 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
l �i3_L 9S�
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 fac-
simile signatures, as above provided, may be engraved, litho-
graphed, or printed, and shall have the same effect as if said
bonds and coupons had been signed in person by each of said
officers. The Comptroller's registration certificate, as pro-
vided hereafter in Section VII of this ordinance, shall be
manually subscribed.
That the form of such bonds shall be substantially as
follows, to -wit:
NO.
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY. -OF JEFFERSON
CITY OF BEAUMONT
WATERWORKS SYSTEM REVENUE BOND, SERIES 1956
$1,000
THE CITY OF BEAUMONT, in the County of Jefferson, in the
State of Texas, FOR VALUE RECEIVED, hereby acknowledges itself
indebted 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 % per annum, interest payable March 1, 1957, and semi-
annually thereafter on September lst and March 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
-7-
money of the United States of America, without exchange or
collection charges to the owner or holder, at The First
National Bank of Beaumont, Beaumont, Texas, or, at the option
of the holder, at Chase -Manhattan Bank, New York, N.Y.
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 they
severally become due.
THE DATE OF THIS BOND, in conformity with the ordinance
hereinafter mentioned, IS SEPTEMBER 1, 1956.
THIS BOND IS ONE OF A SERIES OF 2800 BONDS of like date
and tenor, except as to number, maturity, interest rate, and
option of redemption, being numbered consecutively from 1 to
2800, both inclusive, in the denomination of $1,000 each,
AGGREGATING $2,800,000, and, together with the other bonds of
this series, is issued for the purpose of refunding $800,000
in principal amount of the City's outstanding Waterworks Im-
provement and Extension Revenue Bonds, Series 1947, dated
September 1, 1947, and for the purpose of improving and extend-
ing the City's existing waterworks system, under and in strict
conformity with the Constitution and laws of the State of Texas,
particularly Article 1111 to 1113, Vernon's Texas Civil Statutes,
as amended, and by authority of a vote of the duly qualified
resident electors of said City who owned taxable property
within said City and who had duly rendered the same for
taxation, at an election held within said City on the 29th day
of August, 1956, and pursuant to an ordinance duly adopted by
- 8 -
the City Council of said City and duly recorded in the official
minutes of said City Council. At said election held August 29,
1956, bonds in the principal amount of $6,675,000 were author-
ized to be issued, and $2,000,000 of bonds of this issue
constitute the first parcel or installment out of said voted
bonds.
THE CITY EXPRESSLY RESERVES THE RIGHT TO REDEEM BONDS
NOS. 1601 TO 2800, BOTH INCLUSIVE, of this issue, in whole or
in part, ON SEPTEMBER 1, 1966, 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 to the date fixed for redemption.
Notice of the exercise to redeem shall be given in writing to
the banks at which said bonds are payable and by publication
of such notice one (1) time in a financial journal of general
circulation in the United States of America, which notice shall
be mailed to said banks- and published in said journal 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 when 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 otherwise accrue after the redemption date on the bonds
called for redemption shall terminate on the date fixed for
redemption.
6 3 f
EACH SUCCESSIVE HOLDER OF THIS BOND and each successive
holder of each of the coupons hereto attached is conclusively
presumed to forego and renounce his equities in favor of sub-
sequent 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 notice, thereby has acquired
absolute title thereto, free from any defenses enforceable
against any prior holder and free from all equities and claims
of ownership of any such prior holder. The City of Beaumont
and its officials and fiscal agents shall not be affected by
any notice to the contrary.
THE CITY EXPRESSLY RESERVES THE RIGHT TO ISSUE the re-
maining 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 addition-
al bonds may be on a parity with the bonds of this issue, but
only pursuant to and subject to the restrictions, covenants,
and limitations contained in the ordinance authorizing this
issue of bonds, to which reference is hereby made for all
particulars, and to all the provisions of which ordinance the
owner or holder of this bond by the acceptance thereof expressly
assents.
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, as to principal and interest, solely from
-10-
the revenues derived from the operation of the waterworks system
of said City, including all additions, extensions, and improve-
ments thereto which may hereafter be made, after deduction of
the reasonable expenses of maintenance and operation of said
system. 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.
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 pay-
ment of the principal of and interest on this bond and the series
of which it is a part by irrevocably 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 to be executed by the facaimile signatures of
said officers (in accordance with the provisions of Chapter 293,
-11-
Acts of the 54th Legislature of Texas, Regular Session, 1955,
codified as Article 717j in Vernon's Texas Civil Statutes), all
as of the 1st day of September, 1956.
Mayor, City of Beaumont, Texas
Countersigned:
U -L cy cierx, uity or Beaumont,-i,exas
*(Bonds Nos. 1 to 1820 -- 4 0;
Bonds Nos. 1821 to 2800 -- 3-7/8 0
Section VI•
That the form of coupon attached to such bonds shall be
substantially as follows, to -wit:
No.
On the lst 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 Chase -Manhattan Bank, New York, N.Y. ,
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 the City of Beaumont Waterworks -System Revenue
Bond, Series 1956, dated September 1, 1956. The holder hereof
shall never have the right to demand payment of this obligation
out of any funds raised or to be raised by taxation. Bond No.
City Clerk
-12-
Mayo r
CSC[ (�o 3 A -A-
? t—t3 --t 9 S -L
*(Coupons maturing after September 1, 1966, 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:
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
THE STATE OF TEXAS
REGISTER NO.
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 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 binding special obligation of the
City of Beaumont, Texas, payable from the revenues pledged to
its payment by and in the ordinance authorizing the 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 follow-
ing 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.
-13-
(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 inhabitants thereof, or such as might be
necessary to meet some physical accident or condition which
would otherwise impair the original security,
(d) Bonds - the .$2,800,000 Series 1956 bonds authorized
by this ordinance.
(e) Remaining voted bonds or remaining bonds - the remain-
ing $4,475,000 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 IX(6) of this
ordinance.
(f) Additional bonds - the additional bonds that the
City expressly reserves the right to issue in Section IX(7) of
this ordinance.
Section IX:
PLEDGE OF NET REVENUES: That all of the net revenues from
the operation of the System, with the exception of those in
excess of the amounts required to establish and maintain the
funds as hereinafter provided,are hereby irrevocably pledged to
the payment of the Bonds, subject to the terms and provisions
-14-
of this ordinance. For the benefit of the original purchasers
and for the benefit of any and all subsequent holders of said
Bonds, coupons, or any part thereof, and in addition to all
other provisions and covenants and the laws of the State of
Texas and in this ordinance, it is expressly stipulated:
1 - Rates: The City shall fix and maintain rates and
collect charges for the facilities and services afforded by
the System which will provide revenues sufficient at all times:.
(a) To pay for all operation, maintenance, depreciation,
replacement, and betterment charges of the System;
(b) To produce net revenues each year in an amount not
less than one and one-half (1-1/2) times the average annual
principal and interest requirements of all bonds then outstand-
ing payable from the revenues of the System;
(c) To establish and maintain the Bond Fund and the
Reserve Fund;
(d) To pay all outstanding indebtedness against the
System, other than the Bonds, as and when the same becomes
due. Provided, also, that no free service or services of
the System shall be allowed, and should the City or any of its
agencies or instrumentalities make use of the services and
facilities of the System, payment of a reasonable value thereof
shall be made by the City out of funds derived from sources
other than revenues and income of the System.
2 - Use of Revenues: The City will deposit, as collected,
all revenues derived from the operation of the System into a
separate account (herein called the "System Fund"), which shall
be kept separate and apart from all other funds of the City.
The System Fund shall be administered as follows:
-15-
V
(a) Maintenance and Operation: From the moneys in the
System Fund, the City shall pay the expenses of operation and
maintenance of the 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 inhabitants thereof, or such as
might be necessary to meet some physical accident or condition
which would otherwise impair the original security.
(b) Bond Fund: After the payment of all expenses provided
for in the next preceding paragraph, the City shall pay into
a fund hereby created and established, to be designated as
the "Bond Fund", during each year, beginning with the month in
which the Bonds are dated an amount equal to not less than 100%
of the amount required 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 shall be in substantially equal monthly payments from
the moneys in the System Fund. 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
available and unallocated revenues as of the following month or
months and shall be in addition to the amounts hereinabove
provided to be otherwise paid into said Bond Fund each month.
The moneys paid into the Bond Fund shall be deposited in
The First National Bank of Beaumont, Beaumont, Texas, and
shall be continuously secured by a valid pledge to the City of
direct obligations of the United States of America, having an
aggregate market value, exclusive of accrued interest, at all
times at least equal to such Bond Fund. The amount received
from the purchasers of the Bonds as accrued interest thereon
from the date of the Bonds to the date of delivery shall also
be placed in the Bond Fund, which shall reduce by such amount
the sums which would otherwise be required to be placed into
the Bond Fund from the revenues of the System.
(c) Reserve Fund: There is hereby created and estab-
lished a fund to be designated as the "Reserve Fund." Upon the
issuance, sale, and delivery of these Series 1956 bonds, author-
ized by this ordinance, the City shall immediately cause to be
deposited into the Reserve Fund, out of moneys presently in the
Series 1947 Bond Fund, a sum not less than $100;000.00. In
addition, after the payments required by Sections IX(2)(a) and
IX(2)(b), above, have been made, the City shall pay into the
Reserve Fund each month, beginning with the month in which the
Bonds are dated, a sum not less than $2,500.00,. and such
monthly payments shall be continued until such time as there
is in the Reserve Fund an amount not less than $250,000:00.
Moneys in the Reserve Fund may be used only to prevent
a default in the payment of principal of and interest on
the Bonds in the event there are insufficient moneys in the
Bona Fund to make such payments. 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
-17-
monthly deposit hereinabove provided to be otherwise paid into
said Reserve Fund. The moneys paid into the Reserve Fund shall
be deposited in the official depository of the City, and shall
be continuously secured by a valid pledge to the City of direct
obligations of the United States of America, having an aggre-
gate market value, exclusive of accrued interest, at all times
at least equal to such Reserve Fund. Moneys in the Reserve
Fund, at the option of the City, may be invested in direct
obligations of the United States of America, maturing within
ten (10) years from the date or purchase or maturing before
the final maturity of the Bonds, whichever shall first occur,
which shall be deposited in escrow with the depository under
an escrow agreement. If such funds are so invested and deposited
in escrow, the City shall have the right to have sold, and
shall sell, through the escrow agent on the open market a
sufficient amount of such securities to meet its obligations of
principal and interest in the event it does not have sufficient
uninvested funds on hand for such purpose. Under such circum-
stances, the Mayor is hereby authorized, ordered, and directed
to give fifteen (15) days' written notice to such escrow agent
of the necessity to sell such securities on the open market.
After said sale, the moneys resulting therefrom shall belong
to the Reserve Fund and shall be available to pay such obli-
gations of principal and interest as above provided.
When a balance of not less than $250,000.00 is reached
in the Reserve Fund, no further payment need be made into said
Fund; however, in the event that --said balance is ever reduced to
P
an amount less than $250,000.00, the monthly payments, as
above provided, shall be resumed and continued until said
balance of $250,000.00 is again reached.
(d) Date of payments into Bond Fund and Reserve Fund:
The monthly payments into the Bond Fund and into the Reserve
Fund as required above in Sections IX(2)(b) and IX(2)(c), re-
spectively, shall be made on or before the 15th day of each month.
(e) Trust Funds: Moneys in the Bond Fund and in the
Reserve Fund shall constitute trust funds, and shall be used solely
to pay interest on and principal of the Bonds until all said
Bonds have been retired. When there are moneys in the Bond
Fund and the Reserve Fund sufficient to make all interest pay-
ments and principal payments due and to become due to the final
maturity of the Bonds, no further payments need be made into
said Bond Fund and Reserve Fund.
(f) Surplus: Any funds remaining in the System Fund
after provision has been made for the reasonable cost of operating
and maintaining the System, and after paying the amounts required
to be paid into the Bond Fund and into the Reserve Fund, as above
provided, and after all payments that may be required by
ordinances pertaining to the remaining voted bonds and additional
bonds have been made, may be used by the City for the redemption
of the Bonds, remaining voted bonds, or additional bonds; or may
be transferred to the City's general fund for use for any lawful
general or special city purpose, as authorized by Chapter 513,
Acts of the 51st Legislature of Texas, Regular Session, 1949, as
amended by Chapter 122, Acts of the 53rd Legislature of Texas,
Regular Session, 1953 (codified by Vernon's Texas Civil Statutes
as Article 113a); or may be used for any other purpose permitted
by law.
-19-
t' l �13 - b b
3 - Maintenance and Operation:
That the City shall main-
tain the System in good condition and operate the same in an
efficient manner and at a reasonable cost. So long as any of
the Bonds are outstanding, the City agrees to maintain insurance,
for the benefit of the holder or holders of said Bonds, on
the System of a kind and in an amount which would usually be
carried by private companies engaged in a similar type of
business. Nothing in this ordinance shall be construed
as requiring the City to expend any funds for this purpose
which are derived from sources other than the operation of
the System, but nothing herein shall be construed as preventing
the City from doing so.
4 - Accounts, fiscal year, and accounting reports: That
the City shall keep proper records and accounts (separate from
all other records and accounts of the City) in which complete
and correct entries shall be made of all transactions relating
to the System. The City will operate the System and will keep
its books of records and accounts on the basis of a fiscal year
ending June 30th. Not later than 120 days after the close of
each fiscal year, beginning with the fiscal year ending June 30,
1957, the City will furnish (without cost) to the original pur-
chasers of the Bonds, and to any holder of any Bond or Bonds
who may so request in writing, a signed or certified copy of a
report by an independent firm of certified public accountants,
covering the next preceding fiscal yaar, showing the following
information relating to the System:
-- (a) Income and expense statement;
•— (b) Balance sheet;
(c) Accountant's comment regarding the manner in which
the City has complied with the requirements of this ordinance,
-20-
and his recommendation for any changes or improvements in the
operation of the System;
(d) List of insurance policies in force at the end
of the fiscal year, showing, as to each policy, the risk.
covered, the name of the insurer, and the expiration date.
(e) The number of properties connected with the
System and the total income from the System for the year;
(f) The number of unmetered customers of the System
at the end of said fiscal year, if any; and
(g) The number of gallons of water pumped into or
taken by the System and the number of gallons of water sold
by the System during said fiscal year.
5 - Inspections: Any original purchaser of 25% or
more in principal amount of the Bonds, and any holder of 25%
or more in principal amount of the Bonds then outstanding
shall have the right at any reasonable time to inspect the
System and all records, accounts, and data of the City relating
thereto.
6 - Remaining voted bonds: The City reserves the
right to issue the remaining $4,675,000 bonds voted at the
election held August 29, 1956, in one or more installments, and
said bonds when issued shall be on.a parity in all respects
with the Bonds authorized hereby, but none of the remaining
bonds shall be issued unless:
(a) Each of the funds created by this ordinance
contains the amount of money then required to be on deposit
.therein;
(b) The net revenues of the System for the last preced-
ing fiscal year, as certified by an independent certified public
accountant or'firm of certified public accountants, were equal
-21-
lJ fir, �3 rv'71-13
to at least one and one-half (1-1/2) times the average annual
principal and interest 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
authorizing 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 re-
quired by other ordinances or proceedings relating thereto and
in addition to any balance or balances required by said other
ordinances or proceedings) of not less than the average annual
principal and interest requirements of the bonds then proposed to
be issued and which balance shall be reached within five (5)
years from the date of such bonds; and
(d) The bonds then proposed to be issued are made to
mature on September 1st in each of the years in which they are
scheduled to mature.
The term "net revenues" as used herein shall mean all of
the net revenues of the System (excluding income received
specifically for capital items) after deduction of the reasonable
expenses of operation and maintenance of the System (excluding
expenditures for capital items).
7 - Additional bonds: In addition to inferior lien bonds
authorized by Chapters 249 and 250, Acts of the 51st Legislature
of Texas, 1949, as amended, the City reserves the right to issue
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
-22-
J J 1 �3✓lU7
the net revenues of the System in the same manner and to the same
extent as are the Bonds and the remaining voted bonds, and such
additional bonds may in all respects be on equal dignity with
the Bands and the remaining voted bonds. No additional bonds,
however, shall be issued until and unless all conditions
specified in Section IX(6) with respect to the remaining voted
bonds have been met, and said conditions so specified in said
Section IX(6) shall apply with equal force with respect to the
issuance of additional bonds under this Section IX(7).
The term "net revenues" as used herein shall have the
_same meaning as that set forth in Section IX(6).
R, -OA -Ann X
System of Records and Accounts: That the Mayor, City
Clerk, and City Treasurer are hereby instructed and directed
to do any and all things necessary in reference to the installing
and maintaining of a complete system of records and accounts
pertaining to said System and to make the moneys available for
the payment of the Bonds in the manner provided by law.
Section XI:
Special covenants: That the City covenants, by and
through this ordinance, as follows:
1 - Power to pledge revenues: That it has lawful power
to pledge the revenues supporting this issue of Bonds and has
lawfully exercised its power under the Constitution and-l-aws of
the State of Texas, including said power existing under Articles
1111 to 1118, both inclusive, Vernon's Texas Civil Statutes,
as amended; that the Bonds issued hereunder shall be ratably
secured under said pledge of income, and in such manner that one
bond shall have no preference over any other bond of said issue.
-23-
2 - Revenues not encumbered:. That the City covenants and
represents that other than for the outstanding Series 1947 bonds
(which bonds are to be paid and retired on September 1, 1957,
the funds for such purposes being deposited with the Treasurer
of the State of Texas under the provisions of Article 1118n-5,
Vernon's Texas'Civil Statutes, as amended in 1955, either prior
to or simultaneously with the issuance of the Bonds), the rents,
revenues, properties, and income of said System are not in any
manner pledged to the payment of any debt or obligation of the
City, nor of said System.
3 - Sale or Encumbrance of System or Revenues: That, so
long as any of the Bonds remain outstanding, the City will not
sell or encumber the System, or any substantial part thereof, and
`-1 that, with the exception of the remaining voted bonds and the
t
additional parity bonds mentioned in Sections IX(6) and IX(7),
respectively, of this ordinance, when issued in accordance with
all the terms and conditions of this ordinance, it will not
encumber the revenues of said System unless such encumbrance is
made junior and subordinate to the Bonds and to all the provisions
of this ordinance.
4 - No competing system: That the City further covenants
and agrees, to the extent it legally may, that so long as any
of the Bonds or interest thereon are outstanding, no franchise
shall -be granted for the installation or operation of any com-
peting system, that the City will prohibit the operation of any
system other than the System owned by the City, and that the
operation of any such system by anyone other than the City is
hereby prohibited.
-24-
Section XII:
Ordinance is contract: That the provisions of this
ordinance shall constitute a contract between the City and the
holder or holders from time to time of the Bonds, and after the
issuance of any of said Bonds, no change, variation, or altera-
tion of any kind in the provisions of this ordinance may be made
until all of said Bonds have been paid in full as to both prin-
cipal and interest.
n --J-4 VT TT .
Record of Bonds and Registration: That it shall be the
'duty of the Mayor to submit the record of said Bonds and the
Bonds to the Attorney General of the State of Texas for exami-
nation and approval, and thereafter to have them registered by
the Comptroller of Public Accounts of the State of Texas. As
provided by Article 1118n-5, Vernon's Texas Civil Statutes,
as amended in 1955, a certified copy of this ordinance shall
be submitted to the said Comptroller, and after the Bonds have
been approved by the Attorney General of Texas, the said Comp-
troller shall register the Bonds.
LI --4--4 VTST.
Sale of Bonds: That said Bonds, having been advertised
for public sale in accordance with the terms and provisions of
Section. 4 of Article IX of the City's Home -Rule Charter, and
_ _-- _ bids having been received pursuant thereto, it is hereby found --
and determined that the bid of John Nuveen & Company and
Associates at a price of the principal amount
of said Bonds, plus accrued interest thereon from the date thereof
-25-
-A
l!- /3 I�Q
to the date of actual delivery, plus a premium of $ 86,80
is the best bid received, and the sale of said Bonds to the flamed
bidder at the stated price is hereby authorized, approved,
ratified, and confirmed, subject to the unqualified approving
opinion, as to the legality of said Bonds, of the Attorney
General of Texas, and Vinson, Elkins, Weems & Searls, Houston,
Texas, market attorneys. After the Bonds have been registered
by the Comptroller of Public Accounts of the State of Texas,
said Comptroller is authorized and requested to deliver the same
to the American National Bank, Austin, Texas, for the account of
the City. Upon receipt of the full purchase price, said Bonds
shall be delivered to the purchasers.
Section XVI:
Disposition of proceeds: That the sum of $800,000.00
from the proceeds of sale, representing that portion of the bonds
being issued for the purpose of refunding a like amount of the
outstanding Series 1947 bonds, shall be deposited with the
Treasurer of the State of Texas, which sum, along with $73,000.00
to be deposited with said Treasurer out of available revenues
of the System and with other funds to be deposited out of said
revenues with said. Treasurer to pay the charges of the
paying agents and fees of the State Treasurer, will be used
solely for the purposes of paying and redeeming the outstanding
$873, 000.00 outstanding -_Series 1947 _bonds on September l; -1957,
the interest on such bonds falling due March 1, 1957 and
September 1, 1957, and the charges of the paying agents and
fees of said Treasurer, all as more specifically provided in an
ordinance heretofore adopted by the City Council; and that the
remaining proceeds of sale shall be used exclusively for the
purpose of improving and extending the System; and that the
-26-
_ a �V �r SCJ � ' • -51
sum received representing accrued interest on said Bonds shall
be deposited in the Bond Fund as heretofore provided in this
ordinance.
Section XVII:
Duties of Mayor and City Clerk: That the Mayor and
the 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 XVIII:
Effective date of ordinance: That this ordinance shall
take effect from and after the date of its passage.
PASSED this 13th day of November 1956.
M City of Beaumont, Texas
ATTEST:
CAly -Clerk-, City of Beaumont,
Texas
( SEAL)
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
e un e the City o eaumont,
Texas, o hereby certify that the attached and regoing is a
true and c ect copy of an ordinance adopt e by the City Council
of said City a on the 13 ay of November ,1956
- _ - -fir with -an -e rpt"- from -the- mi - - es d o saimeeting showing
the adoption thereof, same ap rs of record in the official
minutes of said City Counc file in my office.
WITNESS MY HAND D THE OF IAL SEAL OF SAID CITY,
thy. y o Novem er
City Clerk, CityBeaumont,
(SEAL) T e x a s