HomeMy WebLinkAboutOrdinances (O-82-462)-01/04/1982
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ORDINANCE NO.
0-82-462
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
COLLEYVILLE, TEXAS, AUTHORIZING THE ISSUANCE OF
$400,000 PRINCIPAL AMOUNT OF CERTIFICATES OF
OBLIGATION OF SAID CITY TO BE KNOWN AS "CITY OF
COLLEYVILLE, TEXAS, COMBINATION TAX AND JUNIOR LIEN
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1982" FOR
THE PURPOSE OF CONSTRUCTING IMPROVEMENTS AND EX-
TENSIONS TO THE CITY'S COMBINED WATERWORKS AND
SANITARY SEWER SYSTEM; PRESCRIBING THE MATURITIES OF
SAID CERTIFICATES AND THE INTEREST RATES; PROVIDING
THAT SAID CERTIFICATES SHALL BE PAYABLE FROM THE
PROCEEDS OF AD VALOREM TAXES AND CERTAIN NET REVENUES
OF THE CITY'S COMBINED WATERWORKS AND SANITARY SEWER
SYSTEM; PROVIDING THE FORM OF SAID CERTIFICATES;
CONFIRMING THE SALE OF SAID CERTIFICATES; AND MAKING
OTHER PROVISIONS PERTAINING TO THE SUBJECT AND
PURPOSE OF THIS ORDINANCE.
* * * * * * * * * * * * * * * * * * * * * * * * *
WHEREAS, the City Council of the City'of Colleyville,
Texas (the "City"), heretofore determined that it was neces-
sary to construct needed improvements and extensions to the
City's combined Waterworks and Sanitary Sewer System; and
WHEREAS, the City Council, having found that the City did
not have available unencumbered funds for the purpose of
making such improvements, determined that it would be in the
best interest of the City and its residents to issue and sell
certificates of obligation for such purposes; and
WHEREAS, the City Council caused notice of intention to
issue certificates of obligation to be published in a news-
paper of general circulation in the City once a week for two
(2) consecutive weeks, the date of the first publication of
said notice being at least fourteen (l4) days prior to the
date set forth in said notice that the City Council tenta-
tively proposed to authorize the issuance of said certificates
of obligation; and
WHEREAS, no petition of any kind has been filed with the
City Secretary, any member of this Councilor any other of-
ficer of the City protesting the issuance of said Certificates
of Obligation; and
WHEREAS, the City Council of the City now desires to
issue combination tax and revenue certificates of obligation
of the City in the principal amount of $400,000 for the pur-
pose of securing funds to pay contractual obligations incurred
in making the aforesaid improvements; now, therefore,
,/
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
COLLEYVILLE, TEXAS:
Section 1: That there shall be and there is hereby
ordered to be issued under and by virtue of the provisions of
Article 823, Articles llll to 11l8, inclusive, and Article
2368a.l, Texas Revised Civil Statutes, a series of certifi-
cates of obligation of the City of Colleyville, Texas (the
"City"), to be known as "CITY OF COLLEYVILLE, TEXAS, COM-
BINATION TAX AND JUNIOR LIEN REVENUE CERTIFICATES OF
OBLIGATION, SERIES 1982" in the principal amount of $400,000
for the purpose of constructing improvements and extensions to
the City's combined Waterworks and Sanitary Sewer System.
Section 2: That said certificates of obligation shall be
numbered from One (1) to Eighty (80), both inclus.i ve, in the
denomination of Five Thousand Dollars ($5,000) each.
Section 3: That said certificates shall be dated Decem-
ber 1, 1982, shall bear interest rates and shall become due
and payable serially on December 1 of each of the years as
shown on the following schedule, to-wit:
CERTS. NOS. DATE OF INTEREST.
(Both Incl.) NATURITY AMOUNT RATES
1 - 5 1984 $ 20,000 10 %
6 - 10 1985 25,000 10 %
II - 16 1986 25,000 10 %
17 - 23 1987 25,000 10 %
24 - 30 1988 25,000 10.5 %
31 - 38 1989 30,000 10.5 %
39 - 47 1990 40,000 10.5 %
48 57 1991 40,000 10.5 %
58 - 68 1992 45,000 10.75 %
69 - 80 1993 80,000 10.75 %
without the right of prior redemption.
Section 4: That said certificates shall bear interest
from date to maturity at the per annum rates shown above; such
interest to be evidenced by proper coupons attached to each of
said certificates and said interest shall be payable on
June l, 1983, and semi-annually thereafter on December land
June 1 in each year.
Section 5: That both principal of interest on this issue
of certificates shall be payable in lawful money of the United
States of America, without exchange or collection charges to
the owner or holder, at First City National Bank of Col-
leyville, Colleyville, Texas, upon presentation and surrender
of certificates or proper coupons.
Section 6: That the seal of said City may be impressed
on each of said certificates. The certificates and interest
coupons appurtenant thereto (if said certificates are issued
in bearer form) may be executed by the ~mprinted. facsimile
signatures of the Mayor and City Secretary of the City and
execution in such manner shall have the same effect as if such
certificates or coupons had been signed manually by the Mayor
and City Secretary. Inasmuch as such certificates are
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required to be registered by the Comptroller of Public Ac-
counts of the State of Texas, only his signature (or that of a
deputy designated in writing to act for the Comptroller) shall
be required to be manually subscribed to such certificates in
connection with his registration certificate to appear there-
on, as hereinafter provided, all in accordance with the pro-
visions of Article 717j-l, V.A.T.C.S.
Section 7: That the certificates will be issued in
bearer form with appurtenant interest coupons or in registered
form at the election of the purchaser. If the certificates
are issued in bearer form, the certificates and appurtenant
coupons will be in substantially the form set out in Section 8
of this ordinance. If the certificates are issued in regis-
tered form, the certificates and registration ledger shall be
in substantially the form set out in Section 9 of this or-
dinance.
Section 8: That the form of bearer certificates and
appurtenant interest coupons shall be substantially as fol-
lows:
(a) Form of Certificate:
NO. $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF COLLEYVILLE, TEXAS
COMBINATION TAX AND JUNIOR LIEN REVENUE
CERTIFICATE OF OBLIGATION,
SERIES 1982
* * * * * * * * * * * * * * * * * * * *
KNOW ALL MEN BY THESE PRESENTS: That the City of
colleyville, Texas, a municipal corporation duly incorporated
and existing under the laws of the State of Texas, FOR VALUE
RECEIVED, acknowledges itself indebted to and hereby promises
to pay to bearer
FIVE THOUSAND DOLLARS
($5,000) in lawful money of the United States of America, on
the 1st day of December, , with interest thereon from
date hereof at the rate of PERCENT
( %) per annum, said interest being payable on
June 1, 1983, and semi-annually thereafter on December 1 and
June 1 of each year, upon presentation and surrender of cer-
tificate or properly annexed interest coupon as they severally
mature.
BOTH PRINCIPAL OF AND INTEREST ON this certificate are
hereby made payable without exchange or collection charges to
the holder, at First City National Bank of Colleyville,
Colleyville, Texas, and for the prompt payment of the interest
on this certificate and the principal thereof at maturity, the
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full faith, credit and resources of the City of Colleyville,
Texas, are hereby irrevocably pledged.
THIS CERTIFICATE is one of a series of certificates,
numbered consecutively from One (1) to Eighty (80), both
inclusive, in the denomination of Five Thousand Dollars
($5,000) each, aggregating the principal sum of Four Hundred
Thousand Dollars ($400,000), issued for the purpose of obtain-
ing funds to pay contractual obligations to be incurred in
constructing certain improvements and extensions to the City's
combined Waterworks and sanitary Sewer System, under and in
strict conformity with the Constitution and laws of the State
of Texas, particularly Articles 823, 1111 to 1118, inclusive,
and Article 2368a.l, Texas Revised civil Statutes, and in
accordance with an ordinance duly passed by the City Council
of the City of Colleyville, Texas, which ordinance is of
record in the minutes of said City Council (the "Certificate
Ordinance") .
THE DATE of this certificate, in conformity with the
ordinance above referred to is December 1, 1982.
THIS CERTIFICATE and the series of which it is a part are
payable from a levy of ad valorem taxes upon all taxable
property in said City, and are further payable from and se-
cured by a lien on and pledge of certain net revenues derived
from the operation of the City's Combined Waterworks and
Sanitary Sewer System (after first making all payments re-
quired by the ordinances authorizing the issuance of the
outstanding First Lien Bonds, all as more particularly de-
scribed in the Certificate Ordinance and in the Ordinance
authorizing the issuance of the First Lien Bonds) .
THE CITY, however, expressly reserves the right to issue
additional obligations on a parity with and payable wholly or
in part from the same revenues as the aforesaid First Lien
Bonds and further reserves the right to issue additional
obligations on a parity with certificates of this series and
payable from the same source or sources of net revenues and/or
taxes securing the payment of this certificate and the series
of which it is a part; provided, however, that any and all
such additional obligations may be issued only in accordance
with and subject to the covenants, conditions, liens and
restrictions relative thereto, which are set out in the ordin-
ances authorizing the issuance of said First Lien Bonds and/or
the Certificate Ordinance; to which ordinances reference is
hereby made for more complete and full particulars.
IT IS HEREBY CERTIFIED AND RECITED that the issuance of
this certificate, and the series of which it is a part, is
duly authorized by law; that all acts, conditions and things
required to be done precedent to and in the issuance of this
series of certificates of obligation, and of this certificate,
have been properly done and performed, and have happened in
regular and due time, form and manner as required by law; that
sufficient and proper provision for the levy and collection of
taxes has been made, which taxes, when collected, shall be
appropriated exclusively to the payment of this series of
certificates and to the payment of the interest coupons there-
to annexed as the same shall become due; that further pro-
vision for the payment of the interest on this certificate and
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the series of which it is a part has been made by irrevocably
pledging the above mentioned net revenues; and that the total
indebtedness of said series of which it is a part, does not
exceed any Constitutional or statutory limitation.
IN WITNESS WHEREOF, the City of Colleyville, by its City
Council, has caused a facsimile of the seal of the City to be
imprinted hereon, and this certificate to be executed by
imprinting hereon the facsimile signature of the Mayor and
countersigned by imprinting hereon the facsimile signature of
the City Secretary and the interest coupons hereto attached to
be executed by the imprinted facsimile signatures of said
Mayor and City Secretary (all in accordance with the pro-
visions of Article 717j-l, Revised Civil Statutes of Texas, as
amended), as of the date of this certificate, the IST DAY OF
DECEMBER, 1982.
Mayor, City of Colleyville, Texas
J.R. "Buckll Hubbard
COUNTERSIGNED:
C1.ty Secretar
Texas
LaVada Johnson
(SEAL OF CITY)
(b) Form of Interest Coupons:
NO. $
ON THE FIRST DAY OF , the City of
Colleyville, Texas, hereby promises to pay to bearer, out of
funds specified in the certificate to which this coupon is
attached, the amount'shown hereon in lawful money of the
United States of America, upon presentation and surrender of
this coupon, at First City National Bank of Colleyville,
Colleyville, Texas, without exchange or collection 9harges,
such amount being interest due on such date on CITY OF
COLLEYVILLE, TEXAS; COMBINATION TAX AND JUNIOR LIEN REVENUE
CERTIFICATE OF OBLIGATION, SERIES 1982, dated December 1,
1982, Certificate No.
Hay
Section 9: That the form of the registered certificate
and registrat~on ledger shall be substantially as follows:
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.... ..--.....-.....-T.
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(a) Form of Certificate:
NO. $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF COLLEYVILLE, TEXAS
COMBINATION TAX AND JUNIOR LIEN REVENUE
CERTIFICATE OF OBLIGATION,
SERIES 1982
* * * * * * * * * * * * * * * * * * * *
THE CITY OF COLLEYVILLE, a municipal corporation duly
incorporated and existing under the laws of the State of
Texas, acknowledges itself indebted to and FOR VALUE RECEIVED
hereby promises to pay to
("Owner"), or Owner's registered assignee, as hereinafter
stated, the sum of
FIVE THOUSAND DOLLARS
($5,000) in lawful money of the united States of America on
the FIRST DAY OF DECEMBER, , with interest thereon from
the date hereof until paid at the rate of PERCENT
( %) per annum, said interest being payable on June 1,
1983, and semi-annually thereafter on December 1 and June 1 of
each year. Both principal of and interest on this certificate
are payable only to the registered owner as the same appears
on the books of the Registrar of this series of certificates
of which this certificate is one.
PRINCIPAL of this certificate shall be payable at the
First City National Bank of Colleyville, Colleyville, Texas
(the "Registrar"), upon its presentation and surrender, and
interest thereon shall be payable at the most recent address
of the registered owner shown on the books of the Registrar.
THIS CERTIFICATE is one of a series of certificates,
numbered consecutively from One (1) to Eighty (80), both
inclusive, in the denomination of Five Thousand Dollars
($5,000) each, aggregating the principal sum of Four Hundred
Thousand Dollars ($400,000), issued for the purpose of obtain-
ing funds to pay contractual obligations to be incurred in
constructing certain improvements and extensions to the City's
combined Waterworks and Sanitary Sewer System, under and in
strict conformity with the Constitution and laws of the State
of Texas, particularly Articles 823, llll to lll8, inclusive,
and Article 2368a.l, Texas Revised Civil Statutes, and in
accordance with an ordinance duly passed by the City Council
of the City of Colleyvil1e, Texas, which ordinance is of
record in the minutes of said City Council (the "Certificate
Ordinance") .
THE DATE of this certificate, in conformity with the
ordinance above referred to is December 1, 1982.
THIS CERTIFICATE and the series of which it is a part are
payable from a levy of ad valorem taxes upon all taxable
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property in said City, and are further payable from and se-
cured by a lien on and pledge of certain net revenues derived
from the operation of the City's Combined Waterworks and
Sanitary Sewer System (after first making all payments re-
quired by the ordinances authorizing the issuance of the
outstanding First Lien Bonds, all as more particularly de-
scribed in the Certificate Ordinance and in the Ordinance
authorizing the issuance of the First Lien Bonds) .
THE CITY, however, expressly reserves the right to issue
additional obligations on a parity with and payable wholly or
in part from the same revenues as the aforesaid First Lien
Bonds and further reserves the right to issue additional
obligations on a parity with certificates of this series and
payable from the same source or sources of net revenues and/or
taxes securing the payment of this certificate and the series
of which it is a part; provided, however, that any and all
such additional obligations may be issued only in accordance
with and subject to the covenants, conditions, liens and
restrictions relative thereto, which are set out in the ordin-
ances authorizing the issuance of said First Lien Bonds and/or
the Certificate Ordinance; to which ordinances reference is
hereby made for more complete and full particulars.
IT IS HEREBY CERTIFIED AND RECITED that the issuance of
this certificate, and the series of which it is a part, is
duly authorized by law; that all acts, conditions and things
required to be done precedent to and in the issuance of this
series of certificates of obligation, and of this certificate,
have been properly done and performed, and have happened in
regular and due time, form and manner as required by law; that
sufficient and proper provision for the levy and collection of
taxes has been made, which taxes, when collected, shall be
appropriated exclusively to the payment of this series of
certificates and to the payment of the interest coupons there-
to annexed as the same shall become due; that further pro-
vision for the payment of the interest on this certificate and
the series of which it is a part has been made by irrevocably
pledging the above mentioned net revenues; and that the total
indebtedness of said series of which it is a part, does not
exceed any Constitutional or statutory limitation.
IN WITNESS WHEREOF, the City of Colleyville, by its City
Council, has caused a facsimile of the seal of the City to be
imprinted hereon, and this certificate to be executed by
imprinting hereon the facsimile signature of the Mayor and
countersigned by imprinting hereon the facsimile signature of
the City Secretary (all in accordance with the provisions of
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Article 7l7j-l, Revised Civil Statutes of Texas, as amended),
as of the date of this certificate, the lST DAY OF DECEMBER,
1982.
., /(/ /'1
;ffl. ~~~~ iMilie, Texas
J. R. II Buck II Hubbard
COUNTERSIGNED:
CitY~~~lleYVille.
Texas
LaVada Johnson
(SEAL OF CITY)
(b) Form of Registration Ledger:
The Registration Ledger to be printed on the back of each
certificate shall be substantially in the following form:
REGISTRATION LEDGER
This certificate is fully registerable as to both princi-
pal and interest and the name of the registered owner (appear-
ing on the books of the Registrar) shall be deemed and re-
garded as the absolute owner of this certificate for all
purposes. Payment of the principal of and interest on this
certificate shall be made only to the registered owner or his
legal representative, and the transfer of title or ownership
of this certificate can be accomplished only upon its presen-
tation and surrender to the Registrar, together with an as-
signment duly executed by the registered owner in such form
and with such guaranteed signatures as shall be satisfactory
to the Registrar. The Registrar of this series of certifi-
cates is First City National Bank of Colleyville, Colleyville,
Texas.
DATE OF
REGISTRATION
NAME OF
REGISTERED OWNER
SIGNATURE
OF REGISTRAR'
The transfer of title to any certificates of this series
of certificates shall be accomplished only upon surrender of
the certificates desired to be transferred at the Registrar,
together with an assignment duly executed by the registered
owner in such form and with such guaranteed signatures as
shall be satisfactory with the Registrar. Upon any such
transfer of title, the Registrar shall (i) note in the Regis-
tration Books for this issue of certificates the serial num-
bers of the certificates transferred, the date of transfer and
the name of the new registered owner; and (ii) endorse the
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Registration Ledger on each certificate submitted for transfer
by inserting the date of registration (the date of transfer),
the name of the new registered owner and signing the same.
The person whose name appears on the Registration Books of the
Registrar shall be deemed and regarded as the absolute owner
thereof for all purposes and payment of or on account of the
principal of and interest on such certificates shall be made
only to our upon the order of the registered owner thereof or
his legal representative, and no party in interest shall be
affected by any notice to the contrary. When delivered, the
certificates shall be registered in the name of the initial
owner in the manner provided in this Section. The City shall
pay all costs and expenses incurred in connection with the
initial registration of the certificates.
Section 10: That substantially the following shall be
printed on the back of each certificate (whether in bearer or
registered form):
OFFICE OF THE COMPTROLLER ~
~
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 certificate 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 obligation
of the City of Colleyville, Texas, payable from ad valorem
taxes and the revenues pledged to its payment by and in the
ordinance authorizing same, an said certificate has this day
been registered by me.
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas, this
Comptroller of Public Accounts
of the State of Texas
Section 11: That, for the purposes of this ordinance,
the following words and terms shall mean and include, and are
hereby defined as follows:
(a) City - shall mean and refer to the City of
Colleyville, Texas, and where appropriate, the City
Council of said City.
(b) System - shall mean and refer to the
combined Waterworks and Sanitary Sewer System of the
City, including all present and future extentions,
additions, replacements and improvements thereto,
whether situated within or without the limits of the
City.
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(c) Net Revenues - as such term is used in this
ordinance shall mean and include the gross revenues
derived from the operation of the System less the
reasonable expense of maintenance and operation of
the System, including all salaries, labor, materials,
interest, repairs and extensions necessary to render
efficient service, and every proper item of expense,
as required by Article 1113, Revised Civil Statutes
of Texas, as amended, and after making all payments
required by the ordinance authorizing the issuance of
the First Lien Bonds.
(d) Series 1975 Bonds - shall mean the present-
ly outstanding CITY OF COLLEYVILLE, TEXAS, WATERWORKS
AND SEWER SYSTEM REVENUE BONDS, SERIES 1975, dated
January 1, 1975.
(e) Series 1975-A Bonds - shall mean the
presently outstanding CITY OF COLLEYVILLE, TEXAS,
WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES
1975-A, dated July 1, 1975.
(f) Series 1981 Bonds - shall mean the present-
ly outstanding CITY OF COLLEYVILLE, TEXAS, WATERWORKS
AND SEWER SYSTEM REVENUE BONDS, SERIES 1981, dated
April 1, 1981.
(g) First Lien Bonds - shall mean the Series
1975 Bonds, Series 1975-A Bonds, Series 1981 Bonds,
and additional bonds hereinafter issued by the City
secured by a lien on the revenues of the System on a
parity with the lien securing the presently outstand-
ing First Lien Bonds.
(h) Certificate Ordinance - shall mean this
Ordinance.
(i) Series 1982 Certificates or these Certifi-
cates - shall mean the City of Colleyville, Texas,
Combination Tax and Junior Lien Revenue Certificates
of Obligation, Series 1982, dated December 1, 1982,
authorized by the Certificate Ordinance.
(j) System Fund - shall mean the special fund
created in the ordinance authorizing the issuance of
the Series 1975 Bonds into which all revenues derived
from the operation of the System are paid.
(k) Interest and Sinking Fund (or Certificate
Fund) - shall mean the special fund or account
created in Section 12 of this ordinance to provide
for payment of principal and interest on the certifi-
cates.
(1) Additional Parity Obligations - shall mean
and include any additional bonds or certificates of
obligation which the City expressly reserves the
right to issue in Section 22 of this ordinance.
Section 12: That, for the purpose of paying the interest
on and to provide a sinking fund for the payment, redemption
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and retirement of the Series 1982 Certificates, there is
hereby created and established a special Fund designated
"Special City of Colleyville, Texas, Combination Tax and
Junior Lien Revenue Certificate of Obligation Fund", (here-
after called "Certificate Fund"), and all monies deposited
therein shall be used for no other purpose. This Fund shall
be kept and maintained with the First City National Bank of
Colleyville, Colleyville, Texas, and the custodian of the Fund
is hereby authorized and directed to make withdrawals from
said Fund in such amounts required to pay the principal of and
interest on the certificates as the same become due and ma-
ture.
Section 13: That, to provide for the payment of the debt
service requirements on the certificates herein authorized to
be issued, being (i) the interest on said certificates and
(ii) a sinking fund for their redemption at maturity or a
sinking fund of 2% (whichever amount shall be the greater) ,
there shall be and there is hereby levied for the current year
and each succeeding year thereafter while said certificates or
any interest thereon shall remain outstanding and unpaid, a
sufficient tax on each one hundred dollars' valuation of
taxable property in said City, adequate to pay such debt
service requirements, full allowance being made for delin-
quencies and costs of collection; said tax shall be assessed
and collected each year and applied to the payment of the debt
service requirements, and the same shall not be diverted to
any other purpose. The taxes so levied and collected shall be
paid into the Certificate Fund. The governing body of the
City hereby declares its purpose and intent to provide and
levy a tax legally and fully sufficient to pay the said debt
service requirements, it having been determined that the
existing and available taxing authority of the City for such
purpose is adequate to permit a legally sufficient tax in
consideration of all other outstanding obligations.
The amount of taxes to be provided annually for the
payment of principal of and interest on the certificates
herein authorized to be issued shall be determined and accom-
plished in the following manner:
(a) The City's annual budget shall reflect (i)
the amount of debt service requirements to become due
on the certificates herein authorized to be issued in
the next succeeding fiscal year of the City, (ii) the
amount on deposit in the Certificate Fund, as of the
date such budget is prepared (after giving effect to
any payments required to be made during the remainder
of the then current fiscal year) for the payment of
the certificates herein authorized to be issued and
(iii) the amount of net revenues of the System
estimated and budgeted to be available for the
payment of such debt service requirements on the
certificates herein authorized to be issued during
the next succeeding fiscal year of the City (based
upon the amount of net revenues of the System avail-
able from the preceding fiscal year of the System).
(b) The amount required to be provided in the
succeeding fiscal year of the City from ad valorem
taxes shall be the amount, if any, the debt service
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requirements to be paid on the certificates herein
authorized to be issued in the next succeeding fiscal
year of the City exceed the sum of (i) the amount
shown to be on deposit in the Certificate Fund at the
time the annual budget is prepared, and (ii) the net
revenues of the System budgeted and shown to be
available for the payment of said debt service
requirements.
(c) Following the final approval of the annual
budget of the City, the governing body of the City
shall, by ordinance, levy an ad valorem tax at a rate
sufficient to produce taxes in the amount determined
in paragraph (b) above, to be utilized for purposes
of paying the principal of and interest on the
certificates herein authorized to be issued in the
next succeeding fiscal year of the City.
Section 14: That the City hereby covenants and agrees
that all of the net revenues of the System, with the exception
of those in excess of the amounts required to be deposited to
the Certificate Fund as hereafter provided, are hereby irrevo-
cably pledged to the payment of the principal of and interest
on the certificates as the same becomes due.
Section 15: That the City hereby covenants and agrees
that as received all revenues and income of every nature
derived from the operation and ownership of the System shall
be first deposited in the IISystem Fundll, and all moneys depos-
ited therein shall be pledged and appropriated as follows:
FIRST: To the payment of all necessary and
reasonable maintenance and operation expenses of
the System.
SECOND: To the payments and requirements
required to be made in the ordinance as author-
izing the First Lien Bonds and additional First
Lien Bonds hereinafter issued.
THIRD:
and ln
and
To the Certificate Fund, to the extent
the manner provided in Section l2 hereof;
FOURTH: To any other proper City purposes now
or hereafter permitted by law.
Section 16: That the City hereby agrees and covenants to
cause to be deposited in the Certificate Fund the following
amounts from the pledged net revenues in the System Fund for
the payment of the certificates herein authorized to be issued
as follows:
Beginning on or before the 15th day of May,
1983, and on or before each November 15 and May 15
thereafter (during the period of time the certifi-
cates herein authorized remain outstanding), an
amount equal to not less than the sum of (i) the full
amount of interest due on the certificates on the
interest payment date next succeeding the date of
such deposit and (ii) one-half (~) of the total
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principal payment to become due on the certificates
on the next succeeding December 1 (the first such
deposit for payment of principal shall be made on or
before May 15, 1983).
The deposits to be made to the Certificate Fund, as
hereinabove provided, shall be made until such time as such
Fund contains an amount equal to pay the principal of and
interest on the certificates to maturity. Accrued interest
received from the purchaser of the certificates shall be
deposited to the Certificate Fund and ad valorem taxes levied,
collected and deposited in the Certificate Fund for and on
behalf of this series of certificates may be taken into con-
sideration and reduce the amount of the deposits hereinabove
provided, which would otherwise be required to be deposited in
the Certificate Fund from the net revenues of the System. In
addition, any certificate proceeds in excess of the amount
required to pay the contractual obligations to be incurred
shall be deposited in the Certificate Fund, which amount shall
reduce the sums otherwise required to be deposited in said
Fund from ad valorem taxes and the net revenues of the System.
Section 17: That all moneys on deposit in the special
Funds for which this ordinance makes provision (except any
portion thereof as may be at any time properly invested) shall
be secured in the manner and to the fullest extent required by
the laws of Texas for the security of public funds, and moneys
on deposit in such Funds shall be used only for the purposes
permitted by this ordinance.
Section 18: That the City covenants and agrees with the
holder or holders of the certificates that it will maintain
and operate the System with all possible efficiency while any
certificates remain outstanding and unpaid; that it will
faithfully and punctually perform all duties with reference to
the System required by the Constitution and laws of the State
of Texas, including the making and collecting of reasonable
and sufficient rates for the services furnished by the System
as required by the provisions of this ordinance; and that no
free service shall be provided to any customers or persons
utilizing the System.
Section 19: That the City further covenants and agrees
to keep proper books of records and accounts in which complete
and correct entries shall be made of all transactions relating
to the System. The City shall furnish to any holder of any of
the certificates at the written request of such holder, as
soon as possible after the close of each fiscal year, a com-
plete operating statement of the System in reasonable detail
covering such fiscal year, certified by independent auditors.
Such annual operating statement may be a part of the annual
audit of the City.
Section 20: That the owner or holder of the certificates
herein authorized shall have the right at all reasonable times
to inspect the System and all records, accounts and data of
the City relating thereto.
Section 21: That, in addition to all the rights and
remedies provided by the laws of the State of Texas, the City
covenants and agrees particularly that in the event the City
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(a) defaults in the payments to be made to the Certificate
Fund, or (b) defaults in the observance or performance of any
other of the covenants, conditions or obligations set forth in
this ordinance, the holder or holders of any of the certifi-
cates shall be entitled to a writ of mandamus issued by a
court of proper jurisdiction compelling and requiring the
governing body of the City and other officers of the City to
observe and perform any covenant, condition or obligation
prescribed in this ordinance.
No delay or omission to exercise any right or power
accruing upon any default shall impair any such right or
power, or shall be construed to be a waiver of any such de-
fault or acquiescence therein, and every such right and power
may be exercised from time to time and as often as may be
deemed expedient. The specific remedies herein provided shall
be cumulative of all other existing remedies and the speci-
fication of such remedies shall not be deemed to be exclusive.
section 22: That the City reserves the right to issue
additional obligations on a parity with the First Lien Bonds
when issued in compliance with law and the terms and con-
ditions set forth in the ordinance authorizing said Bonds. The
City further reserves the right to issue additional obliga-
tions on a parity with these certificates when issued in
compliance with law and the terms and conditions hereinafter
appearing; such additional parity obligations, when so issued,
shall occupy a position of parity and equal dignity with these
certificates and shall be equally secured by the same lien on
and pledge of the net revenues of the System as is enjoyed by
these certificates. The City hereby covenants and agrees that
no additional First Lien Bonds and no additional parity ob-
ligations payable in whole or in part from the net revenues of
the System shall be issued unless and until the following
conditions have been met, to-wit:
(a) The City is not then in default as to any
covenant, condition or obligation contained in this
ordinance.
(b) That the laws of the State of Texas in
force at such time provide for the issuance of such
additional parity obligations.
Such additional obligations, when issued in
accordance with the above, may be secured in whole or
in party by a pledge of the net revenues of the
System prior to or on a parity with the pledge
securing these certificates.
Section 23: That the City hereby further covenants as
follows:
(a) That it has the lawful power to pledge the
revenues supporting this issue of certificates and
has lawfully exercised said power under the Constitu-
tion and laws of the State of Texas, including said
power existing under Article 2368a.l, V.A.T.C.S.,
that the certificates shall be ratably secured under
said pledge of income in such manner that one
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certificate shall have no preference over any other
certificate of the issue.
(b) That, other than for the First Lien Bonds
and certificates herein authorized to be issued, the
net revenues of the System have not in any manner
been pledged to the payment of any debt or obligation
of the City or of the System.
(c) That, as long as any certificates or any
interest thereon remain outstanding, the City will
not sell, lease, or encumber the System, or any
substantial part thereof, provided that this shall
not be construed to prohibit the sale of such ma-
chinery, or other properties or equipment which has
become obsolete or otherwise unsuited to the effi-
cient operation of the System.
Section 24: That each of the certificates herein au-
thorized shall be deemed and construed to be a "security", and
as such a negotiable instrument, within the meaning of Article
8 of the Uniform Commercial Code.
Section 25: That the sale of the certificates herein
authorized to be issued to , at
the price of par and accrued interest to the date of delivery
is hereby confirmed. Delivery of such certificates shall be
made to said purchaser as soon as may be after the adoption of
this ordinance, upon payment therefor in accordance with the
terms of sale.
Section 26: That the purchasers' obligation to accept
delivery of the certificates herein authorized is subject to
their being furnished a final opinion of Messrs. Dumas,
Huguenin, Boothman and Morrow, Attorneys at Law, approving
such certificates as to their validity, said opinion to be
dated and delivered as of the date of delivery and payment of
such certificates. Printing of a true and correct copy of
said opinion on the reverse side of each of such certificates
with appropriate certificates pertaining thereto executed by
facsimile signature of the City Secretary is hereby approved
and authorized.
Section 27: That the Mayor of the City shall be and he
is hereby authorized to take and have charge of all necessary
orders and records pending investigation by the Attorney
General of the State of Texas, and shall take and have charge
and control of the certificates herein authorized pending
their approval by the Attorney General, registration by the
Comptroller of Public Accounts and delivery to the purchaser
thereof.
Section 28: That the City hereby covenants that the
proceeds from the sale of said certificates will be used as
soon as practicable for the purpose for which said certifi-
cates are issued; that such proceeds will not be invested in
any securities or obligations except for the temporary period
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of.
.
. I .... ~
pending such use; and that such proceeds will not be used
directly or indirectly so as to cause all or any part of said
certificates to be or become "arbitrage" obligations within
the meaning of Section l03(c) of the Internal Revenue Code of
1954, as amended, or any regulations or rulings prescribed or
made pursuant thereto.
PASSED AND APPROVED, this the 4th day of January,
1983.
ATTEST:
~~
City secretarY,~ of Co11eyville,
Texas LaVada Johnson
(CITY SEAL)
APPROVED AS TO FORM AND LEGALITY, and I further certify that this document binds
the City of Colleyville, Texas, to this debt:
~rU~
Ross 1'. Foster
Ci ty Attorney
1st Reading and Public Hearing being conducted on the 7th day of December,
1982.
2nd Reading and Public Hearing being conducted on the 21st day of December,
1982'.
3rd Reading and Public Hearing being conducted on the 4th day of January.
1983.
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