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HomeMy WebLinkAboutORD 5-T01 AN ORDINANCE AMENDING AN ORDINANCE ENTITLED "AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF BEAUMONT, TEXAS WATERWORKS IMPROVEMENT AND EXTENSION REVENUE BONDS, SE- RIES 1947, IN THE AMOUNT OF TWO MILLION DOLLARS ($2,000,000), TO BE DATED SEPT- EMBER 1, 19472 TO MATURE SERIALLY AS HEREIN SET FORTH AND BEARING INTEREST AT THE RATES HEREIN SET FORTH TO SECURE FUNDS FOR THE PURPOSE OF CONSTRUCTING IM- PROVEMENTS, ENLARGEMENTS, EXTENSIONS, AND REPAIRS TO THE CITY'S WATERWORKS SYSTEM; PRESCRIBING THE FORM OF BOND; PLEDGING .THE REVENUES OF THE WATERiORKS SYSTEM OF THE CITY OF BEAUMONT TO THE PAYMENT OF THE PRINCIPAL, AND INTEREST OF SAID BONDS; PROVIDING FOR THE ErPENSE OF OPERATING SAID SYSTEM; MAKING CERTAIN COVENANTS OF THE CITY OF BEAUMONT IN REFERENCE TO THE BONDS AND THE BOND FUND FROM WHICH SAID PRINCIPAL AND INTEREST ARE TO BE PAID; PROVIDING THAT THE HOLD- ER OR HOLDERS OF SAID BONDS SHALL NEVER HAVE THE RIGHT TO DEMAND PAYMENT OF SAID OBLIGATIONS OUT OF FUNDS RAISED OR TO BE RAISED BY TAXATION; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND DECLARING AN EMERGENCY", BY ELIMINAT- ING FROM SAID ORDINANCE CERTAIN RESTRICTIONS AS TO SUITS AGAINST THE CITY WITH REFERENCE TO SAID BONDS; CHANGING THE TERM "BOND RESERVE" TO "BOND FUND" IN LINES 6 AND 7, PAGE 13, THEREOF; ELIMINATING FROM SAID ORDINANCE PROVISION FOR CERTAIN EXPENDITURES FROM THE BOND FUND, OR BOND RESERVE ACCOUNT; AND ELIM- INATING FROM SAID ORDINANCE PROVISION FOR THE ISSUANCE OF JUNIOR REVENUE BONDS AND DECLARING AN EMERGENCY. WHEREAS, on the 3rd day of June, 1947, the City Commission of the City of Beaumont, Texas passed an ordinance calling an election to be held in the City of.Beaumont, Texas, on June 21, 1947, at which election there was sub- mitted to the qualified electors of said City, who own taxable property in said City and who have duly rendered the same for taxation, among others, the follow- ing proposition: SHALL the City Commission of the City of Beaumont, Texas be authorized to issue serial bonds of said City, being revenue bonds, in the amount of $2,000,000, for the purpose of construct- ing improvements, enlargements, extensions and repairs to the City's waterworks system, said bonds maturing serially in such install- ments as may be fixed by the City Commission over a period of ,years, not to exceed thirty (30) ,years from their date, bearing interest at a rate not to exceed four per cent (41.) per.annum, to be issued in accordance with and secured in the Manner provided in Articles 1111 to 1118, both inclusive, of the Revised Civil Statutes of Texas, 1925, as amended, each bond to be conditioned that the holder thereof shall never have the right to demand pay- ment of said 'obligation out, of funds raised or to be raised by taxation, secured by an exclusive first lien on and pledge of the revenues and income of the City's waterworks system after deduct- ion of reasonable operation and maintenance expenses. In the event said waterworks revenue bonds are authorized, no such obligation of such waterworks system shall ever be a debt of the City of Beaumont, but solely a charge upon the revenues and in- come of the waterworks system, and shall never be reckoned in determining the power of the City of Beaumont to issue any bonds for any purpose authorized by law; and said bonds shall each have printed thereon the following: "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"; and, WHEREAS, at said election held in the City of Beaumont on the 21st day.of June, 1947, pursuant to said ordinance balling the same, and pursuant to notice thereof duly given as provided by law, a majority of the qualified electors residing within the City of Beaumont, who own taxable property in said City and who have duly rendered the same for taxation, voting at said election voted in favor of the proposition as above stated to issue the bonds therein described by the following vote: FOR THE ISSUANCE OF THE WATERWORKS REVENUE BONDS AND THE PLEDGING OF THE REVENUES OF THE CITY'S WATERWORKS SYSTEM TO THE PAYMENT THEREOF ------------- 2356 votes -1- `AGAINST THE ISSUANCE OF THE WATERWORKS REVENUE BONDS AND THE PLEDGING OF THE REVENUES OF THE CITY'S WATERWORKS SYSTEM TO THE PAYMENT THEREOF ------- 264 votes MAJORITY FOR THE ISSUANCE OF SAID BONDS -------------- 2092 votes and; WHEREAS, the City of Beaumont has authority generally to pass this ordinance authorizing the issuance of revenue bonds for the purpose of con- structing improvements, enlargements, extensions, and repairs to the Ci.ty's waterworks system under the Constitution and statutes of the State of Texas, including particularly Articles 1111 to 1118, Revised Civil Statutes of Texas, 1925, as amended, and Chapter 163, Acts of the Regular Session of the 42nd Legislature of Texas, as amended, and Section 11, Paragraph 2, of the Charter of the City of Beaumont; and, WHEREAS, The City Commission of the City of Beaumont now finds and determines that it is necessary and proper at this time to issue said revenue bonds; and,. WHEREAS, the City Commission of the City of Beaumont, now, finds and determines that said ordinances as above entitled should be amended so that the same as amended shall read as herein set forth, now, therefore: BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BEAUMONT, TEXAS: Section 1 That to provide funds for the purpose of constructing improvements, enlargements, extensions and repairs to the City's waterworks system under the Constitution and statutes of the State of Texas, including particularly Articles 1111 to 1118, both inclusive, Revised Civil Statutes of Texas, 1925, as amended, and Chapter 163, Acts of the Regular Session of the 42nd Legis- lature of Texas, as amended, and Section 11, Paragraph 2, of the Charter of the City of Beaumont, as well as all other -laws of the State of Texas there- unto enabling, the City of Beaumont shall issue -CITY OF BEAUMONT, TEXAS, WATER- WORKS IMPROVEMENT AND EXTENSION -REVENUE BONDS, -SERIES 1947,-aggregating two -- million dollars ($2,000,000), numbered from 1 to 2000, both inclusive, of the denomination of one thousand dollars ($1,000) each. Section 2 Said bonds shall be dated September 1, 1947, and shall bear interest at the rates as follows: Bonds numbered 1 to 1265, both inclusive, at 2% per annum; Bonds numbered 1266 to 2000, both inclusive, at 41. per annum; which interest shall be payable on March 1, 1948, and thereafter semi-annually on September 1 and March 1, of each year. Section 3 That said bonds shall become due and payable serially in their numerical order as follows: Bond Number Maturity Date Amount _ 1 to 115, inc. September 1, 1948 $1155000 116 to 233, inc.- September 11 1949' 118,000 234 to 353; inc. September 1; 1950 120;000 354 to 476, inc. September 1; 1951 123,000 477 to 601, inc. September 1, 1952 125,000 602 to 729, inc. September 11 1953 128;000 730 to 8592 inc. September 11 1954 130,000 ` 4b 860 to 992, inc. September 1, 1955 133,000 993 to 1127, -inc. September. 1, 1956 135, 000 - 1128 to 1265, inc. September 1, 1957 138,000 1266 to 1406, inc. September 1; 1958 -1141,000• 1407 to 1550, inc. September 11 1959 144,000 1551 to 1697, inc. September 11 1960 147,000 1698 to 1847, inc. September 1, 1961 1502000 1848, to 2000,"inc. September 1, 1962 1539000 -2- The City of Beaumont expressly reserves the right to redeem any one or all of the bonds numbered 1266 to 2000, inclusive, prior to maturity on September 1, 1957, and on any interest payment date thereafter, provided notice of such redemption is published in a financial publication in the City of New York, New York, at least once not less than thirty (30) days before the time fixed for prior payment, and thirty (30) days' notice in writing is given to the place of payment before the time so fixed for prior redemption, and the money for their redemption or payment, including interest then due, shall have been deposited with the paying agent within ten (10) days prior to or on the date required for payment. If upon the happening of the above condition said bonds are not presented for payment they shall not thereafter bear interest. Unless on or prior to the redemption date the City shall pay or cause to be paid to the paying agent the principal amount of bonds to be redeemed, together with interest thereon to date of redemption, such redemption shall fail, and said bonds shall continue to be in full force and effect the same as if such redemption proceedings were never started and interest on said bonds shall con tinue to run until maturity and payment or subsequent redemption, as provided herein. Section 4 That the principal and interest on said series of bonds shall be pay- able upon presentation and surrender of the bond or proper coupon to The First National Bank of Beaumont, Beaumont, Texas, or at The National City Bank of New York, New York, or at City National Bank of Houston, Houston, Texas. Section 5 That each of said bonds shall be signed by the Mayor and countersigned by the City Clerk of the City of Beaumont, and the corporate seal of the City of Beaumont, Texas, shall be impressed upon each of them. Section 6 That the facsimile signatures of the Mayor and City Clerk may be print- ed or lithographed on said bonds, and said facsimile signatures shall have the same effect as if they had been executed manually by said officials. Section 7 That said bonds shall constitute special obligations of the City of Beaumont, Texas, and each of said bonds shall contain the provision that the holder thereof shall never have the right to demand payment of said obligation out of any funds raised or to be raised by taxation. Section 8 That said bonds and coupons to be attached thereto, and the State Comp- troller'.s certificate of registration to be endorsed thereon, are to be in the following forms, respectively,,with appropriate omissions, insertions, and variations, permitted or otherwise, as herein provided: NO. 1 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF JEFFERSON CITY OF BEAUMONT WATERWORKS IMPROVEMENT AND EXTENSION REVENUE BOND SERIES 1947 $12000.00 KNOW ALL MAN BY THESE PRESENTS: That the City of Beaumont, of Jeff- erson County, Texas, for value received, acknowledges itself indebted to and hereby promises to pay to bearer ONE THOUSAND DOLLARS ($1,000.00) on the 1st day of September, 19!8, with interest thereon from date hereof until paid at the rate of two per cent (20) per annum, interest payable on March 1, 19482 and semi-annually thereafter on September 1 and March 1, of each ,year, on pre- sentation and surrender of the annexed interest coupons as they severally mature. -3- Both principal and interest of this bond are hereby made payable in lawful money of the United States of America at the First National Bank of Beaumont, Beaumont, Texas, or at The National City Bank of New York, New York,ox•at City National Bank of Houston, Houston, Texas at the option of the holder, and for the prompt payment of this bond and the interest thereon at Maturity, the City of Beaumont, Texas, gives and grants an exclusive first lien on and pledge of the revenues and income of. the City's waterworks system, after deduction of reasonable operation and maintenance expenses. The holder hereof shall never have the right to demand payment of this obligation out of funds raised or to be raised -by taxation. *The City of Beaumont expressly reserves the right to redeem this bond prior to maturity, on September 1, 1957, and on any interest payment date there- after provided notice of such redemption is published in a financial publica- tion in the City of New York, New York, at -least once not less than thirty (30) days before the time fixed for prior payment and thirty (30) days' notice in writing is given to the place of payment before the time so fixed for prior redemption, and the money for its redemption or payment, including interest then due, shall have been deposited with the paying agent within ten (10) days prior to or on the date required for payment. If upon the happening of the above condition said bond is not presented for payment it shall not thereafter bear interest. Unless on or prior to the redemption date the City shall pay or cause to be paid to the paying agent the principal amount of this bond, to- gether with interest thereon to date of redemption, such redemption shall fail and said bond shall continue to be in full force and effect the same as if such redemption proceedings were never started, and interest on said bond shall continue to run until maturity and payment or ,subsequent redemption. This bond is one of a series of two thousand (2000) bonds, numbered consecutively from 1 to 2000., inclusive, of the denomination of one thousand dollars ($1,000) each, aggregating two million dollars ($2,000,000). each of said bonds being of like, tenor and effect, except as to number and maturity, interest rate, and option of redemption before maturity, issued for the pur- pose of providing funds for constructing improvements, enlargements, exten- sions_and repairs to the City's waterworks system under and in strict conformi- ty with Article 11, Section 5, of the Constitution of -the -State-of -Texas;--Art_-- - icles 1111 to 1118, inclusive, Revised Civil Statutes of Texas, and Chapter 163, Acts of the Regular Session of the 1,,2nd Legislature of Texas, as amended, and Section 11, Paragraph 2, of the Charter of the City of Beaumont, and all laws thereunto enabling; and issued pursuant to an ordinance duly and legally adopted by the City Commission of the City of Beaumont on the 26th day of August, 1947, which ordinance provides for the operation and maintenance of the waterworks system and for setting aside from the net revenues of the City's waterworks system a sum sufficient for the payment of the principal of and interest on said bonds when due. It is hereby certified and recited that the issuance of this bond.and the series of which it is a part is duly authorized by law and by a majority vote of the resident qualified electors of the City of Beaumont, Texas, who own taxable property in said City, and who have duly rendeiv,u the same for taxation, voting at an election held for the purpose within said City on the 21st day of June, 1947; and that all acts, conditions, and things required to exist precedent to and in the issuance of this bond to render the same lawful and valid have been properly done, have happened and been performed in regular and due time, form, and manner, as required by the Constitution and laws of the State of Texas and the ordinance hereinabove mentioned, and that this series of revenue bonds does not exceed any consti- tutional or statutory limitation, and that provision has been made for the payment of principal and interest of this bond, and the series of which it is a part, by irrevocable pledging to the payment thereof the revenues and income of the City's waterworks system after deduction of reasonable operation.and maintenance expenses. The date of this bond, in conformity with the ordinance above mentioned, is the lst day of September, 1947. In testimony whereof, the City Commission of the City of Beaumont, Texas, has caused the corporate seal of the City of Beaimgont, Texas, to be affixed here- to, and this bond has been signed by the Mayor and countersigned and attested by the City Clerk, and the interest coupons hereto attached to be executed by the facsimile signatures of the Mayor and the City Clerk as of the 1st day of September, 1947. Mayor of the City of Beaumont, Texas -4- Attest: City Clerk of the City of Beaumont, Texas *(This paragraph should be omitted from bonds numbered 1 to 1265, in- clusive). The form of interest coupons attached to said bonds shall be substan- tially as follows: NO. On the lst day of March, 1948, the City of Beaumont, Texas, out of revenues specified in the bond to which this coupon is attached, will pay to bearer at The First National Bank of Beaumont, Beaumont, Texas, or at The National City Bank of New York, New York, or. at City National Bank of Houston, Houston, Texas the sum of ($ ) in lawful money of the United States of America, said sum being six months' interest due that day on the CITY OF BEAUMONT, TEXAS, WATERWORKS IMPROVEMENT AND EXTENSION REVENUE BONDS, SERIES 1947, bearing the number hereinafter specified, dated September 1, 1947. The holder hereof shall never have the right to demand payment of this obliga- tion out.of funds raised or to be raised by taxation. Bond No. Mayor of the City of Beaumont, Texas City Clerk of the City of Beaumont, Texas Coupons on said bonds numbered 1266 to 2000, inclusive, shall include the following clause after the interest payment date: "unless the bond to which this coupon is attached has been called for prior redemption and payment made or provided as therein recited". The form of Comptroller's certificate which shall be printed on the back of each -bond shall be substantially as follows: OFFICE OF COMPTROLLER REGISTER NO. STATE OF TEXAS I hereby certify that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to 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 that it is a valid and binding special obligation of the City of Beaumont, Texas, payable from the revenues pledged to its payment by 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, this day of , A.D., 1947. (Seal) Comptroller of Public Accounts of the State of Texas Section 9 After said bonds have been executed by the City officials, as herein - above provided, they shall be presented to the Attorney General of the State of Texas for examination and approval. After the bonds have been approved by the Attorney General they shall be registered by the Comptroller of Public Accounts of the State of Texas. Section 10 The said waterworks system as improved and extended, together with all extensions, additions, replacements and improvements thereto hereafter construct- ed or acquired, shall, for the purpose of this ordinance, constitute the "System". -5- The term "Net Revenue" shall mean the gross revenues which shall in- clude the revenue collections of every nature derived from the operation of the waterworks system, minus the expense of operation and maintenance thereof, including all salaries, labor, materials, repairs, and extensions necessary to render efficient service and every proper item of expense; and where used in this ordinance the term "Operation and Maintenance" shall include all such items. The term "Bonds" as used herein shall mean the issue of revenue bonds authorized in this ordinance. Section 11 The City Commission hereby covenants and agrees that it will at all times while any of the bonds or any interest thereon are outstanding and unpaid charge and collect for services rendered by said System rates sufficient to pay all maintenance, depreciation, replacement, betterment and interest charges, and to pay the interest and principal of the bonds as such interest and prin- cipal mature, and any outstanding -indebtedness against the System, as is re- quired by Article 1113, Revised Civil Statutes of Texas, as amended. For the benefit of the original purchaser, and for the benefit.of any and al.l:subse- quent holders of said bonds, coupons, or any part thereof, and in addition to all other provisions and covenants in the laws of the State and in this ordi- nance, it is expressly covenanted: A. 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: (1) To pay for all operating, maintenance, depreciation, re- placement and betterment charges of the System, as required under Article 1113, Revised Civil Statutes of Texas, as amended; (2) To establish and maintain the Bond Fund hereinafter defined; and (3) To pay all outstanding indebtedness against the System other than the bonds, as and when same become due. The City Commission of the City of Beaumont shall from time to time prescribe by ordinance the rates -to -be charged for the water to be usad-by-all consumers of its water system, and no free service shall ever be allowed, ex- cept for buildings and properties owned and operated by the City of Beaumont, including water used by the Fire Department, The expenses of operation and maintenance, including all salaries, labor, materials, repairs, and exten- sions shall be such only as are reasonable and necessary that the System may render efficient service, and the System shall be economically and efficient- ly operated and maintained. B. 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: (1) Maintenance and Operation Fund. There shall be set aside monthly in a separate -account in the System Fund, to be known as the "Maintenance and Operation Fund", such an amount as shall be found necessary to keep such fund at all times sufficient to pay the reasonable expenses of upkeep and main- tenance of the System, and said fund shall be applied'in payment of such ex- penses, .(2) Bond_Fund. -From the funds remaining in the. System Fund, after - setting aside the aforesaid amount in the Maintenance and Operation Fund, the City shall pELy into a separate account (herein called the "Bond Fund"), during each year beginning with the date of the bonds, an amount equal to one hundred per cent (100%) of the amount required to meet the interest and principal pay- ments falling due on or before the next maturity date of the bonds. In addi- tion to such payment, the City shall pay into the Bond Fund from the System Fund in each year twenty per cent (20%) of the above required amount until such time as there is in the Bond Fund an amount sufficient to meet the interest and principal payments on the bonds for one ,year in advance. The amount required to be paid into the Bond Fund in each year shall'be paid in substantially equal monthly payments from the monies in the System Fund after making the required payment into the Maintenance and Operation Fund. If the revenues of the Sys- tem in any month, after provision for operation and maintenance, are insuffi. cient to make the required payment into the -6- Bond Fund, then the amount of the deficiency shall be added to the amount other- wise required to be paid into the Bond Fund in the next month. It is the in- tent of this provision that the sums paid into the Bond Fund shall be in excess of the immediate requirements for payment of interest on and the principal of the bonds until there has been accumulated in the Bond Fund, as a reserve for contingencies (herein called the'Bond Reserve"), an amount sufficient to ser- vice the bonds for one ,year. The monies in the Bond Fund shall be used sole- ly for the purpose of paying interest on and principal of the bonds until all bonds have been retired; provided that when the total amount in the Bond Fund is equal to the aggregate principal amount of the bonds outstanding plus.all unpaid coupons thereto appertaining, no further payments need be made into the Bond Fund, and the monies in the Bond Fund may be used to purchase bonds at a price exclusive of accrued interest, not exceeding the principal amount thereof, provided that if such bonds are thus purchased at a price of more than their par value plus accrued interest, the excess of such cost shall be paid out of money other than that in the Bond Fund. The monies paid into the Bond Fund shall be deposited in a bank or banks and shall be continuously secured by a valid pledge of direct obligations of, or obligations unconditionally guaranteed by the Unit- ed States of America, having a par value or market value when above par, exclus- ive of accrued interest, at all times at least equal to such Bond Fund. The Bond Fund at the option of the City may be invested in such direct obligations of the United States of America and deposited in escrow under an escrow agree ment. If such funds are so invested and deposited in escrow, the City shall have the right to have sold through the escrow agent on the open market a suffi- cient amount of said securities in order to meet its obligations of principal and interest in the event it does not have sufficient hinds uninvested on hand for such purpose. Under such circumstances the Mayor is hereby authorized, ordered, and directed to give fifteen days' written notice to such escrow agent of the necessity to sell said securities on the open market. After such sale the monies resulting therefrom shall belong to the Bond Fund and shall be available to pay such obligation of principal and interest. Each month while said bonds or interest thereon remain outstanding and unpaid there shall be transferred from the Bond Fund to the bank of payment or its legal successor not less than one -sixth of the next maturing interest pay- ment and not less than one -twelfth of the next maturing principal, which sums are to be used in the payment of the principal and.interest as they severally mature and as proper bonds or coupons are presented for payment. (3) Surplus. Any money remaining in the System Fund after provision for the reasonable_eost of operating and maintaining the System and after pay- ing the amounts required to be paid into the Bond Fund, as above provided, may be used by the City for the purchase of bonds at not exceeding the market value thereof, or any other purposes permitted or authorized by law. C. REDEMLDTION OF BONDS: With respect to the redemption of any bonds under this ordinance, as well as to the payment of any of such bonds at maturi- ty, such bonds shall be conclusively deemed to have been redeemed or paid for the purposes of this ordinance when the money for their redemption or payment, including interest then due, shall have been deposited with the paging agent within ten days prior to or on the date required. The paying agent shall hold such monies in trust for the redemption or payment of such bonds, interest on such bonds shall cease, and such bonds shall no longer be a charge against any other funds or any monies, revenues or income of the waterworks system. Unless on or prior to the redemption date the City shall pay or cause to be paid to the paying agent the principal amount of the bonds to be redeemed, together with interest thereon to the date of redemption, such redemption shall fail and said bonds shall continue to be in full force and effect the same as if such redemption proceedings had never started and interest on said bonds shall con- tinue to run until maturity aaa payment or subsequent redemption as provided herein. Nothing herein shall prevent the issuance of bonds junior in lien to the present bonds. D. MANAGEMENT AND CONTROL. The management and control of the waterworks system of the City of Beaumont shall be at all times in the City Commission of the City of Beaumont, Texas. Such City Commission shall have the power to .m_a.ke rules and regulations governing the furnishing of service to patrons and for the payment of same and providing for the discontinuance of such ser.i ce in case of failure to pay therefor when due until payment is made,, The City ConL-r8sion shall have power to provide penalties for the violation of such rules and regu- lations and for the use of such service without the consent or knowledge of the authorities in charge thereof and to provide penalties for all interference, tres- passing or injury to any such System or appliance or the premises upon which sane may be located. -7- 1= E. INSURANCE: The City shall at all times until the principal sum of money and interest due on the Waterworks Improvement and Extensions revenue Bonds shall have been fully paid, keep the various properties of the waterworks plant and system which are usually kept insured by private water companies, in- sured against loss or damage by fire or other injury, in good and responsible insurance company or companies. In case of loss the insurance money received on any such policies of insurance shall be applied toward the rebuilding or replacing of the property destroyed or injured or the construction or acquisi- tion of other property or facilities suitable to and needed as a part of such System, or when not needed for such purposes may be applied to the redemption of bonds. The premiums on insurance policies and all expenses necessarily incurred by the City of Beaumont in performing or fulfilling the covenants of this or- dinance shall be an operating charge and shall not be charged against the General Fund of the City or against any fund to be raised by taxation. F. ACCOUNTS AND PERIODIC STATEMENTS: The City shall keep proper books of records and accounts (separate from all other records and accounts) in which com- plete and correct entries shall be made of all transactions relating to the System. The City shall furnish to any holder thirty days after the close of each six months' final period operating and income statements of the System in reasonable detail covering such six months' period, and not more than sixty days after the close of each fiscal ,year complete financial statements of the System in reasonable detail covering such fiscal ,year certified by the City's Mayor and City Clerk. G. INSPECTION: The holder or holders of the abovedescribed bonds shall have the right at,all reasonable times to inspect the waterworks plant and the entire system and shall have the r.Lgnt to inspect' the construction of the pro- posed extensions, improvements or betterments of said waterworks plant and sys- tem, and shall have the right to inspect all records, accounts and data of the City of Beaumont pertaining thereto. The City will cause the books and accounts of such System to be audited annually by an independent firm of certified public accountants and permit the inspection of the report of such accountants by the holder of any such bonds. Upon request and upon the payment of the reasonable cost thereof, the City will furnish a copy of such report to any bondholder. H. SALE OF BONDS: Upon request, the City will furnish to any purchaser of twenty-five per cent (25%) of_the bonds information for the pre.paration:of a bond circular in' customary form, signed by the proper officials of the -'City' con- taining such data as such purchaser may reasonable request concerning the City and the System. Section 12 The Mayor and City Clerk are hereby instructed and directed to do any and all things necessary or convenient in reference to the installing and main- taining of a ormplete system of records and accounts pertaining to said System and to make the monies available for the payment of the bonds in the manner provided by Chapter 122, Acts of the Regular Session of the 43rd Legi�latiire of Texas$ effeeti3ratMay 12, 1933, In accordance Frith the provisions of Article 1113, Reva.-sed-Civil Statutes df 1W5s.as amended, the fiscal year for the opera- tion of sucti System shall; be- .January let. to December 31st, of each year. Section 13 The City hereby further covenants as follows: (a) That the revenue bonds authorized hereunder shall be special obli- gations of the -City -and the holder thereof shall never have the right to demand payment thereof.out of funds raised or to be raised by taxation. (b) That it has the lawful power to pledge the revenues supporting this issue of bonds and has lawfully exercised said power under the Constitution and laws of the State of Texas, including power existing under reticles 1111 to 1118, both inclusive, Revised Civil Statutes of the State of Texas, with amend- ments thereto, and Chapter 163, Acts of the Regular Session of the 42nd Legis- lature; that the bonds issued hereunder shall be ratably secured under said pledge of income, in such manner that one bond shall have no preference over the other bonds of said issue. (o) In addition to monies to be paid into the Bond .Fund from the reve- nues produced by said System, the City will pay into said fund the following: • 8-W nM / 5 / The balance remaining unexpended from the proceeds of the sale of the bonds after the completion of the improvements, and the money represented by interest accruing on said bonds from their date to the date of delivery to the purchasers thereof. (d) The City covenants that other than for the payment of the bonds herein provided for, the rents, revenues, and income of the said waterworks system have not in any manner been pledged to the payment of any debt or obli- gation of the city or of said System, and that the waterworks system and all water rights appertaining thereto are owned in fee simple title by the City of Beaumont and are.free and clear of encumbrances. (e) The City of Beaumont hereby irrevocable covenants, binds and obli- gates itself that neither said waterworks plant and system nor any part thereof, including any additions or extensions that may be made thereto, shall, so long as any of the bonds hereby secured or interest thereon remain outstanding or unpaid, be sold or disposed of, or be mortgaged or otherwise encumbered. This section shall not, however, prevent the City from, in ordinary course of business, disposing of wornout or obsolete equipment, lines or other facili- ties deemed by it to be unnecessary or to be no longer fit'and appropriate to the economical and prudent operation of the System, so long as by current main- tenance and reasonable extension and betterment from time to time the System as a whole is maintained so that it may be efficiently and economically operat- ed and serve well its purpose of supplying the City of Beaumont and its custo- mers with water. The proceedscE any such sale shall be used to replace the items retired or to be paid into the Bond Fund. Section 14. The Mayor of the City of Beaumont `is hereby directed to submit the re- cord of said bonds and the bonds themselves to the Attorney General of the State of Texas for approval, and thereafter to have them registered by the Comptroller of the State of Texas, and said bonds, when properly executed by the City offi- cials, shall be held by the Mayor of the City of Beaumont to be delivered by the Mayor to the purchaser or purchasers thereof. The Mayor and City Clerk are authorized and directed to do any and all things necessary and convenient to effect delivery thereof to the purchaser. Section 15 All ordinances and parts of ordinances and all resolutions and parts of resolutions inconsistent with the provisions of this ordinance are hereby rescinded and repealed in so far as same may conflict herewith, and it is fur- ther provided that if any protion of this ordinance shall be declared invalid, such invalidit-, shall in no way affect the remaining valid portions thereof. Section 16 The fact that the present waterworks system of the City of Beaumont is in need of repairs and extensions, that the City of Beaumont has recently annex- ed a large additional area of territory containing a large suburban population, and that many citizens of the City of Beaumont are now without water services, and that such conditions endanger public safety by the increased fire hazards incident thereto and endanger the public health by reason of the insufficiency of water, create an imperative public emergency necessitating the suspension of -the rule requiring ordinances to be read on three separate days before their passage, and said rule is hereby suspended and this ordinance shall take effect, from and after the date of its passage. PASSED this, the 23rd day of September, 1947, by the affirmative vote of all members,of the City Commission of the City of Beaumont, Texas. Mayor of the City of Beaumont, Texas 193