HomeMy WebLinkAboutOrdinances (O-81-406)-06/02/1981
OP.=INA~CE 0-8:-d06
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;..~: iJSj)Tr~_~,_~~C~ b:.l tt-..e C~i~:~" CO'.l:l,~i.l of !:h~ C=-t.\~ or ,-'
CGl]_ev~'ill~, ~exasJ ac~h~ri3ing =he ~ss~ance of
C:; . ni-., (lr~,-~ I'(""lTr"'j1-...:-- r',,~ (,TT r. ITLI T""I rr. "C" .A,r-"'.......:""'\ iC.,.,TT-
~ ........,..r.......t_. '_',IV _.___..... v_ ~,_':...-~4--1.-\-..... ~~, ~!::~':~--..). ...7_--'~..:..;::-:.~.~ '~u...._0
A:~=' S:~'~=? S-:-ST:S~-: ?FY~~n;E BmlDS, S::S.l:ES 1982.",
d2:~d j~~~iJ. 1. 193~, as autho~ize~ b~j7 t~2 ~e~eral
. . 0
i ~._-- ,,: rL.,~ s- ~~E:: r,'= Tex-s ':ncl,,"::i,...,~ ^~-;c' -- 1"" 1,
-Lc..:.~ j_ ~_.e La._ ...J_ _ .CO ,.,1.... _w.l.l.-.-s _::-1.- <--L :.C:, ~--
e t: s .~.:. ~ "! -....~.. _~ .. T .. C .. S ..; p ~ e.s C ::"l D 1. r: g t:l 2 t 0 ~ () ~ DC' u. G:3
~~~d s.=:.l-.i:-:.; pr.:,vision for !:':1eir re~iscr2,:io::.; pledg-
leg t~:e ~2C revenues of the Cicyls :~2[e~~o=ks and
S an; -t- ~ ry ,.. ~ c , e r S - S +- - "" ~ -, t '"' e ~ . ,--, ~'n - 0'= ~ 1-. "" T"' .,... l' T ~ l'
_....<-c .J=.v y ~-=..:., LU d pc:...=. L ~ ..:..l~ t--'- .1'_ -
pal of 2~d in~erest O~ said DO~CS: 2~d e~ac~i~g
other pr~visions inc~de~t and rel~ti~g co the subje~~
and purpose or this ord~n2nce.
\{HEP~_S, the City Cu~ncil of the City of Colleyvi1le, Texas
has decermined that revenue bonds, paya~le fro~ a~d secured by
a lien on and pledge of the City I S combined \;a~e:r-;.;rorks and S2~-
ita27 SeNer Systeo, in the aggregate principal amoun~ or
$1,400,000 should be issued ror the purpose of making improve-
ments Cl.!ld extensions to the City's cO:!l,;)ined ~.j2:e~.:or'='.s ane 52.r:-
its~j S~ver System, to wit: construct, exte~c and improve water
supply, storage and distribution racilit~es; and
\'lliEREAS, notice or intention to issue s'Jc~ revenue bonds
(sta.ting the cate, tiDe and place this COllilcil proposed to pass
the ordinance au~horizing the issuance of t~e revenue bonds, the
p~rDoses ror which the bonds are to be issued, the maximum 2mC~~L
or Sands proposed to be issued, the maximum yate or interest t~2
pro?o~ ed bonds waul d bear and the maxiTI}'..E] ma tu.::-i t:;; cia te 0 f s1:ch
bones) has been dul~ pub~ished in ~ort.l~ort[l Star Tplf~' a.ne,,j's-
?2pe::- published, and havlng generak clrculaclon, In the Clty of
C<:Jlleyville, Texas, on April 10, , 1981 ane ~ril 17
1981, the date of the rirst puclication of such no~ic2 being at
least fo~~teen (14) days prior to the Gate statee the~ein ror
tne passage of this ordinance; and
\,TH:=:?-.EAS, no petition of any kind o~ cha=-2c~e:- has been file'::
,,;it:h the City Secretary, any Derr:ber of this C:o'..mc.il or 2ny ot1-:'?]'
o:ficer of the City requescing a ~eferend~, electio~ ce held on
t~e issuance of ~he proposed revenue bonds: ?nd
\~nERL;S, t~is Council hereby rin1s ane ~ete~iines that such
-reve::ue Donds can be issued on a nari tv ,;.,]i th and be eoual} v s ec1.,,~::
.- # 6. J .. J
in the s~we ~anner as the outstanding re~enue bonds of the City
p~yable from ~!ld secured by a first lien on a~d pledge of the ne~
revenues or the City's combined Waten~orks and S2nitary Sewer Sy:.~~'
(ne:t.-einafter called and derined as "previous ly iss '..led bonds If) in
that (i) the City is not now in default as to any covena~t. co~-
Gition or obligation presc~ibed in the orc~na~ces dut~orizing t~2
issua~ce or the previously iss~2d bonds, (ii) eac~ of the special
F'..ilids erea reG for tne paymen t and s eC'..1ri ty of :.he previ o'J31y is S i.>>':
ocnds cODt~ins the arrount now required to ~e O~ ceposit therein,
(iii) the City can secure rrOI a Certifiec ?u,;)lic AC20untant a
rE:port sl,Q'..-ling that the net earn~n?s 0: the C:.. LY' 2- co:::oined \':'at2~--
r.:ori:s and Sa:l.ita,-:-j Se:.;er SysL:ec in ::he ccc.p~=:ec :::iscal year 2e:-::
F,eceJ:..n.; che a.cop~ior: of ::his orC:~~2:l.Ce_ 2:-2 -::':".lc~ to at le23 [_
c~2 and t~entv Dunareaths (1.20) L:l=es ::~2 ~~~~2=e 2:l.nual recu~~e
:C:~:1[S i.)c all- the bonds to be sec'.2rE:C j:: ::i :=:.:-s: 2.:en on 2nd 'pIe.:_ =-
c.: :;',2 r:c~t re'Jenues of said SjTste:7 :;nie:: ',.:i:'~ '::e o:Jr:;t:anding 2.::c:-
r;:-::: :3S''':,-;;"o2e of tr..e Donds herein 2'..:t::o:-i~'e;::. (-:.~,-) 7:he Dor.ds 1-:e:-o::>-
uL~:~-~c:-i2E~ s::all ::l2r.:t.:re on Ja:1uar)" 1 anc (-.,,) ::--:~s 0yalnanC2 p~o-.:\._~
f'....':- adci-io:i:!l de?osits t:o be l.,2Ge 7:0 (a) t::-~c ::-:.terest ClnG Si2~:i::?
:t;-r -,~--o1': .l-od fo~ tnE:: P."T,,,,,,C"'- or tr.~ ..,~-.." -"'Sl" isc;"ed 1-. -:1,'::- :-
-'- .. _ <..:,., L,~ . ~ ... ~ ., ~ C L ~ J ._, .: L. . - :-: ~ ~ . - _ - _ _, _ ,- - . L' U - \.... .:- -. ~
--.-",,-.-- 2'.PC'....-e ...~ pc" thP pyln'""....-l -r:" -----p-- -re""'..l,~p-e""--
.-:.........v.......:;;. \.,..;._ ......1...-:._ l......... _'r It...._ _ '"-......r-Ci- r:..._ _...........e__.::.--..... .. ~_. ........_llt .....-'="
t~c bC::l.ds he:- i~ au~~c:-iZ2d to be iSS~2d ~:-:.~ (b) rhe reserve fu~~
C:-E~ted for [:-2 b2~efit o~ the
:o[cl ~~~~~~ ~o be accu~~12ted
pr"'''l'n'..s-:.' ':--,.p"-: 0-/'S so -"'L.-..-- _.....:~
... "-,,, "": _ _ ..: ... ~ _ ",,:=: ___.... ~ ~).. . ... ~ _ L. ! , ...1 L
cnereln ~:~~ ~2 e:~al to not less
~1-.#'")n r'nn ''''':'''-~--~~.C "':~~"'al .,~i-'r'"";~al ~"H'''C ;'!""\-o-=-. - ~"::"""l1":-..'::l-'o""""tt -For 2--;'"
____a- _ ,_ ~'--'-h- o...-.._l.._ _ t".....-l........-;-' c-.. - _J...._'-__~'_ -,,-~_..........~.__.-_. - --
r};-=- ()..r<-:...."n~;-1~ pr",'rio"sly i"'.sued b--,~..l-:: "'~,..: -.'--.=> ~'-n\~-:- he-Din
l.- . _ I..- _.... 10....- _ ~ J,.. _ 0 _ ... _ ... ... .. .....I..... '-- 1 .. - - - .. .. _'...... - -' .. .1.._
2~t~~ri~ed an~ dny additional a~~~nt recui~~~ to be deposited :~~~0-
it: ~..:ill. be ~cct:7:"::..l12:ed 'l'\'.]i[~;.i~ t2n c2~en=~:- ':e(~:-s 0= t:'e car:e o~ r.':-.:.~
~C'1c.:.:; h":':ci~ 3:"::flod.=ed; c.l;C:
Page 2
HEEREAS, this COlli'lcil ::'c.:rcher finds and ce::e"'-l:i:::.es tha:: 2..1..'-
the bonds described in che afore~entioned no~ic2 sho~ld issuec an~
sold at this tiDe; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEY'.TILL?
SECTION 1: That, for the p~rpose of rnaK~ng i~pro~eGe:::.ts a~c
extens ions to the Ci r:v I s co:::":> inee T:la cenJOrks ane.. S ani caTV S e,;"er
.. -
System, to wit: construct, exr:end and irnDrove ~ateT s~D~ly s:ar2~e
and distribucLon facilities, the City Cou~cil or che Ci~~ of ,0
C " .11..... ., - h' ,.."..l '
O~ieyvl e, ~exas, enaer and pursuant to aut. orlty co~rerre~ oy
and in accordance with the General Laws of the State o~ Texas
particularly Articles 1111 et seq. and 2368a, V.A.T.C.S., has'
determined that there shall be issued and there is hereby orcered
to be issued revenue bonds in the total principal a~ount of O~~
MILLION FOUK HL11DP~D TdOUSAND DOLL~RS ($1,400,000), tc be desig-
na ted "CITY OF COLLEYVILLE, TEX:\S HATERHOR.lZS AND SE"JER SYSTEN
REVENUE BONDS, SERIES 1931", payable, together ~.]ith certain out-
standing and unpaid previously issued bonds (hereinafter id2nti-
fied and defined), as to both principal and interest solely from
and equally secured by a first lien on and pledge of t~e net
revenues of the City's combined Waterworks and SanicaTY Sewer
System.
SECTION 2: That said bonds shall be dated Anril I, 1981;
shall----oenumbered consecutively rrom One (1) up~.JaYd, shall each
be in the denomination or One Thousand Dollars (51,000); and
shall become due and payable serially on January 1 in each of ::he
years in accordance with the following schedule:
BOND NCMBERS
(All Inel us i "Ie) }i~TURITY ANOU~T
1 and 20 1983 20,000
21 to 35 1984 15,000
36 to 50 1985 15,000
51 to 70 1986 20,000
71 to 90 1987 20,000
91 to 115 1988 25,000
116 to 145 1989 30,000
146 to 175 1990 30,000
:76 to 205 1991 30,"00
206 to 240 1992 35,000
241 to 275 1993 35,000
276 to 315 1994 40,000
316 to 355 1995 40,000
356 to 400 1996 45,000
401 to 445 1997 45,000
446 to 495 1998 50,000
496 to 545 1999 50,000
546 to 595 2000 50,000
596 to 645 2001 50,000
646 to 695 2002 50,000
E96 to 745 2003 50,000
746 to 795 2004 50,000
796 to 845 2005 50,000
846 to 895 2006 50.000
89n to 950 2007 55,000
951 to 1,005 2008 55,000
1,006 to 1,060 2009 55,000
1,061 :0 1,llS 2010 55,000
1,116 to 1,175 2011 60,000
1,176 to 1,245 2012 10.000
1,246 to 1,320 2013 75,000
1 ..,? 1 to 1,400 20 It.... .S:',.OJO
_,.J--
PROVIDED, H(}:'';E~GP., that tr'.-? City c.:::se:::-""l:::-- ~nc ri?,C'l~ t(, :-c-
deem the bO:1ds of this series I'v1turing <'C: Jc::'C:''':::''''' 1. 1992. 2.nc
subsequent, in who!e or in part (but in inve~~2 ~:'~erical orde~
i fIe s s t h a n a II), 0 n J an u a ry 1, 19 9 1. 0 r 0 n ~ T' in:: ere s r p .~, y::; e" t
~--'.'~~-"-'-'''-''-'-'''----r'----'''-._-''-----'-~'-'---"-"-"'-'
Page 3
c2te t[-.e:::-....,=~e!" at t::e p:::-ice or par and accruec lTlterest to the
G2 ::2 of =~-._~::i.:J!l;_ 2nd in 2ddi tiOE, du::- ing the period or ti:::2
a~y of th_ ~8nds o~ this series are registered in the name of
the initi2~ pu::-chaser (Fa~ers Home Administrati8n), the City
res erves t~~" righ t to redee:n such bonds, in 'i.vhol e or any part
th~reof, at any ~ime at t~e price or par and accrued interest;
P~SVIDED, FL~~qER, that at least thircy (30) days prior t~ a dat~
any of said Donds are to be redeemed, a notice or rede~otion,
sigi1ed by t::e City Secretary (specifying the serial nu~ers and
a~o~~t of bo~d3 to be redeemed), shall have been sent: by rirst
class ~ail, postage prepaid, to the registered owner(s) or the
bonds to be redeemed, at the address appearing on the books of
the Registrar; and ir the City shall have mac~ available to the
Registrar by the cace or redemDtion runds in amounts sufficient
to pay t~e bonds to be redeemed and accrued interest thereon,
any bond or bonds not presented ror redemption pursuant to such
nocice shall cease to bear interest rrom and arter the date so
fixed ror redem?tion.
SECTION 3: That each bond or cnlS series shall bear interes'
fro:n C2e da t:e of i ts delivery to the ir..~. ::ial purchas er u!H:il pai (i
ac the rate or 5% per annuw; and said i~:erest shall be payable
on January 1 next follm.;ing the deliver:v' date and annually the:::-e..
after on January 1 in each year. An endorsecent by t2e Registra>
indicating the date of delivery (being the date of registration
first shot.;n on the Registration Ledger) sha~l be placed on ecch
bond in the Registration Ledger provided in Section 7 hereof. Tjy
"payin~ agent" and "Regis trar" ror this series of bonds shall b2
TE~ FIRS7 NATIONAL BArn( OF FORT WORTH, Fort Worth, Texas
SECTION 4: That said bonds shall be fully registered and
the prrnclp2~ of and interest on such bonds shall be payable
only to the registered owner ~hereof, the principal thereor
being payable upon presentation of the bonds at the paying
agent and the interest thereon being payable to the registered
o,mer at thei:lost recent address of the registered owner shown
on the books or the Registrar. Both principal of and inte:::-est
on the bonds shall be payable in law-ful money or the United Stat!"
of ;'_:1!::'-ica and without exchange or collection charges to the
rezistered owner.
'-'
SECTION 5: The seal of said City IDay be impressed on each
of saia bonos or, in the alternative, a facsimile of such se.:-_l
may be prin~ed on the bonds. The bonds may be executeci by th~
iBpriGted facsimile signatures or the Mayor and City Secretary
of the City and execution in such manner shall have the same
effect as if such bonds had been signed by the Mayor and City
Secretary inpersoD_by.their _-mannal_s ignatures _ InasI!1uch as
such bonds are required to be registered by the Comptrolle~ of
Public Acco~~~s for the State of Texas, his signature (or that of
a depucy designated in writing to act for che COillptroller) shall
be required to be manually subscribed to such bonds in conneccion
with his registration certifi2ate to appear thereon. as hereinafter
provided. all in accordance with the provisions of Article 717j-l,
V.A.T.C.S.
S~CTIO~ 6: That the bonds shall be in co~formity with the
p:::-ov~sio~s OI this ordinance and shall be in the form prescribed
b, bon~ counsel, attached hereto as Exhibit ~ 2nd ~ade a part
hereof IO!" all pu:::-poses.
T~E r.o=?trol1e~'s Registration Certificate shall be
sebstan:icilly in :lle rollo-.,:ing fom and sball be printed ou
the back of each lend:
ST:\'Tr: O? TEXAS
s
s
s
REGISTE? NO.
O??IC::: O? CO:'lPTROLLER
Page 4
I HEP~3Y CE~7ID: t~a~ the=e is on file and of reco=~ in
my o==ice a certifica~e of the At:to:.-ney Ger..er2.l or the S;:a.ce
of Tex2s to the effect tha~ this bond has been exa~in2s DV
hi~ as req~i=ed by law, and that hE fin2s that it has b22~
issued in conformity with the Constitution and la~s oE t~e
State of Texas, and that it is a valid and bindina s~~ci2l
o .
oblig2tio~ or the City or Colleyville, Texas, payable fro~
the re'.Jenues pledged to its pa=YLlent by aDd in the ordin2nce
authorizing same, and said bond has this dav beeL re~isL:e!:"ed
by me. J ~
WITNESS }~ a~~D ~5D SEAL OF OFFICE at A~stin, ~exas,
Cosptroller of PUDlic Accounts OI
the State of Texas
SECTION 7: That the transfer of title to any bonds
of this series shall be accomplished only upon surrender of
the bonds desired to be transferred at the Registrar,
together with an assign~ent duly executed by the registered
owner in such form and with such guaranteed signatures as
shall be satisfacto~' to the Registrar. Upon any such
transfer of title, the Registrar shall (i) note in the
Registration Books for this issue of bonds the serial n~~bers
of the bonds transferred, the date of transfer and the n~~e
of the new registered ow~er; and (ii) endorse the Registration
Ledger on each bond submitted for transfer by inserting the
date of the registration (the date of transfer) _ the name of
the new registered Owuer and signing the same_ The person
whose name appears on the Registration Books of the Registrar
shall be dee=ed and regarded as the absolute o,vner thereof
for all purposes and payment of or on account of the principal
of and interest on any such bonds shall be made only to or
upon the order of the registered o,vner thereof or his legal
representative, and no party in interes~ shall be affected
by any notice to the contrary. \fhen delivered, the bonds
shall be registered in the Daffie of the initial purchaser in
the TIjanner provided in this Sectio~, The City sh211 pay all
costs and expe2ses incurred in connection with the initial
reJistration of the bonds.
The Registration Ledger to be printed on the back of
each bond sh~ll be substantially in the follOwing Torm:
REGISTFA7l0N LEDGER
This bond is fully registered as to both principal and
int eres t, and the na;:ne of the regis tered mmer (appearing on
the books of the Registrar) shall be dee~ed ane regarded as
the absolute ow~er of this bond for all purposes. Pajwent
of the princi?al of and inLerest on this bond shall be Dade
only to the registered o'.-TDe:- or his legal :-epresentative.
and the transfer of ti~le 0:- ow~ership or Lhis bone can be
acco~?lished only upon its presentation and surrender to the
Reaistrar toa~ther with an assiccn~ent c~l~ executed bv the
c-:t ' =' - ""
r 2 cis ~ e:-ed o~..-ner in suc~~ fa::-w 2.r:d \~i th S Deb. 20;:!"" CL: -: E: eo
c
si~_2tures as shall be satis:actory to t~e R2~istra!:". i~e
Registrar for this series 0:' bonds is :-:rE FI?...SJ:: t~ATlm:AL B':"':;K
OF :rCR'I' POR:-H, For t \.Jor t n l exas
Or.'] 1 rla.~ice U-C'.. -~,JC
Page 5
Da::e or
Reg:..st::-aticn
Resis te.c::-e d O,mey
D. 0'; t-r- 1
r~eo-'-s __ ""r s
Author~zed Signature
United States of .~erica
Farrr_2rs H08e Ad~nstration By;
Title:
By:
Title:
Bv:
Titre:
By:
Title:
SECTIO~ 8: For all purposes of this ordinance, the
follOwing definitions are provided:
(a) The ceTIn "additional bonds" shall mea:: the
additional parity obligations issued in accorda~ce w~th
the te~s and conditions prescribed in Section 18 hereof.
(b) The terw "bonds" shall mean the $1,400,000 "CITY
OF COLLEYVILLE, TEY.AS, \.JATER\,JOR,.1(S AND SB.JER SYSTEH REVENUE
BO::'iDS, SERIES 1981", authoyized by this ordinance.
(c) The term "bond COtl..T1S el" shall mean the 1av.~ firm
of Dusas, Huguenin, Boothman and Morrow, AtLorneys 2t Law,
Dallas, Texas.
(d) The term "bonds similarly secured" shall mean the
prev~ously issued bonds, the bonds and additional bonds.
(e) The term "City" shall mean the incorporated
miliiicipality known as the City of Colleyville, Texas.
(f) The teTIn "City Secyetary" shall r.:ean the person
who acts as City Secretary or City Clerk of the City,
irrespective of the particuJ.ar title given to such official.
(g) The term "fiscal :,'ear" shall ~ean the twelve-month
operat ional peTio d 0 f the S~,- s te!l1 ending each year 01. Sept e:''ll' .::r
30th; provided, however, at such time as the previously
issued bonds have been fully paid as to both principal and
interest, the City may change the fiscal year to another
peYiod of not less than twelve calendar Donths by the passags
of an ordinance, but in no event may the fiscal year be
changed ffiOye than one time in any three calendar year period.
(h) The tern "maintenance and operation expenses" shall
~ean only those expenses rectuired or permitted by the provi-
sions of Article 1113, V.A.T.C.S., or other applicable law,
to be a fiyst lien on and chac::-ge against the income of the
Svste:n.
(i) The term "net reven'..les" shall Lean all income and
revenues of theSyste= less naintenance and opeyation expenses
(j) The term "previous 1y issued bo:-'!os" shall meaD the
o~:s~anding and unpaid revenue bonds 0: the City payable fro~
an~ ;ecured by a first lien on and ple~~e of the net reven~es
0: che Syste8, identified as follows
(i) City of Colleyville. Texas. 'i-:a~erworks and
Se,,Jer Syste;!: P,e-.Jer:ue Bonds, Series 1975": dated
Jan1.la.ri 1, 1975. and originally iss'..lea in the princip2l
s~n of $2,000,000; and
(ii) City of Colleyville. Texas, Harerl.,:orks and
Se,.;er Sysr:em Revenue Bonds, Series 1975-A". d2ted
Ju:v 1 - 1975 and oric,inally iSS\12d in the princip3.1
~u~- of'$250,OOO. ~
...... Ie. IL:"':
Page 6
(k) The t em "Res e::-ve F~iC P-.s:n.ln L" shall mear:. the to ta J
acou~~ required to be aCC~2~~2ted in ~he ~ese::-ve Fund to
provide security for the Dav~en~ or the Donds sisilarlv
secured, and during the ti~e :he bonds 2~~horized he::-eu~~er
are o~t3tmldLLg such a~ount s~all 02 no~ less than $ 218,010
which a~o~lt is not less cha~ average annual principal and
inter~3L requirements or :he ~reviouslv issued bonds and the
bonds. .-
(1) The terD "Reserve LlLid Deposi::s" shall mean the
tr.unthly. deposits required to be made co the Reserve Fu::.d for
purposes of acc~ulating and 2aintaining the Reserve Furr=
Amo~~t, and ouring the period of time the bonds and previously
issued Donds are outstanding, such monthlv deposits shall be
in an amount equal to not less than $ l357.do
(m) The term "System" shall mean and include the
wate:r;vorks and sewer system of the City, together ",ith cmy
addicions and extensions thereto and imvrovements and replace-
men ts thereo f hereaft er cODSt::""clCted or a~quired.
SECTION 9: The City hereby covenants that all of the net
revenues or the System, with the exception of chose in excess
of the amoWlts required to establish and maintain the special
Fwids created for the payment and security of the bonds si~ilarly
secured, are hereby irrevocably pledged to the payment and securicy
of the previously issued bonds, the bonds and additional bonds,
if issued, and it is hereby ordained that the bonds similarly
secured shall constitute a first ~ien on and pledge of the net
revenues of the System.
SECTION 10~ That the City hereby covenants and agrees
.....,ith the holders of the bonds that rates and charges for ,.;rater
and seWEr services provided by the System will De escablished
and maintained to provide revenues sufficient at all times to
pay:
(a) all operating, mai::.tenance, depreciation,
replacement, betteYment and interest c~arges and
other costs incurred in the caintenance and operation
of the System;
(b) the interest on End prir.cipal of the bonds
sinilarly secured and the asounts required to be deposited
into the special Funds created and established for the
payment and security df the bonds similarly secured; and
(c) any other legally incurred indebtedness payable
from the revenues of the System and/or secured by a lien
on the System or the revenues thereof.
SECTION 11: The City hereby reafrirms its covenant to the
holders at che previously issued ~onds and agrees with the
holders of the bonds that all revenues and income of every nacure
. . . ~ th ~ . ~, , S ~ . 1"' k +- e -
derlvec t~om e operaLlon o~ ~ne YSLe~ S~a~_ 0e 'ep~ S par2~e
from ocher funds or the City. To that end :~e following spec~21
Funds heretofore created and esta~lished are ~ereby reaffirced,
to ,-lit:
() \1 [e"'-,To.,...1.~ _-,..l Se---~ 5--.:;-e- 1:"..~'; :'-""e;n-fte~ eal ~ ,,-
a ..a ,-w ~~::> CuU .'.<::_ '._l.. ,.. ,,__.~. Lt::_ __ <~_ - _~t,
"System Fund". This fune 5:-.a11 contin-..:e co be kep: in the
City,'s depository bank, sepa~ate and 2~a=: froe all other
fun~3 and accounts of the Ci~y.
(b) hr2terwor~:s aIle Se-..::::= S-:5::e,-, I:-;::eres:: and Sinkir;g
Fund, hereinafter called "I:i:e~e.:': 2nc. Si~~i:tg Fund". ll-'~is
F~id shall continue to be ke~~ ~~~ ~a~nt~ined at the C~cyls
deoositorv bank as Trustee 0: tne ~lecie~ ~even~es. anc
mo~eys d~~osited therein shall be ~se~ tc pay princip21 of
and ir ~rest on the Donds si=ilarly sec-..:~~d ~hen and as the
same sllall. become due a.nd pa:,.rable.
""-,-,-- -------'T
PaCle 7
(=) W2~2~vorks and Se~er Syste~ Rese~ve F~~d,
here~_:.f-=el- c2.~led "Reserve Fur..d". 1'':1is Fund sh2.11
co:->.:~::-.:.'2 :0 ~2 kept ard IT.2-in~ainec at the City's
deF::;3~Lo'0T b2.:lk. as Trustee of the plecged revenuss,
and EC~2YS d~?osited therein shall be used to pa~
principal of ~,d inte~est on the bonds si~~larlv
.. ~ .J
sec~~~d f211i~g due 2C 2n) time when there is not
s~f~i2ien~ money available in the Interest and SinkiL-g
Filii. d .
Nething herein shal~ be construed as prohibiting the placing
of the n2-:::1e of the Citv at the bec-innincr of the narce or each
.; 0 - 0
Fund if it found the sane will assist in identification
thereof.
SECTION 12: The Citv herebv reaffiros its covenant and
agrees tn2.C all revenues ~nd inc;me of every nature received
through the operation of the System shall be deposited fron day
to day as collected into the System FU-.Tld, and the reasonable
and proper expenses of operating and maintaining the System
as set forth in Section 8 eh) hereof shall be paid therefrom
upon app~oval of t~is g8ven1ing body. All revenues of the
System noc actually req1..:~.~ed to pay expenses and costs incurred
as perci~ted by this Section shall be appropria:::ed and used
for the pUrDoses and in the order of precedence hereinafter
set forth. . .
SECTION 13: That, in addition to the deposits required to
b~ made to the In~erest and Sinking Fund for the paynlent of
principal and in:::erest on the previously issued bonds, the City
hereby covenants a:->.d agrees to deposit in said Fund the follo~ing
amOQ~ts to pay the principal of and interest on the bonds as the
sa~e becowes due, to wit:
Iill:!lediately follmving each delivery of the bonds, the
City T~easure~ shall (i) calculate the a~ount of debt servic~
requi~eDents to become due on the bonds delivered (the amount
of principal and interest, either or both) on the interest
pay:nent dace next follm',1ing the delivery or such bor.ds; 2!1d
(ii) cause to be deposited to the Interest and Sinking Fund
on or befo~e the 15th day of each month between the date of
delivery of Such bonds and the interest payment date next
follm/iing sUDS tantially equal monthly amounts so that the::
full amount of such debt service requirements will be on
deposit not less than fifteen (15) days prior to the i~itial
interest pa;~ent date on the bonds delivered; provided, how-
ever, if any bonds are delivered within t\Venty (20) days of
an interest payment date, then the full a:nount of the debt
service reauirements to bec02e due on the bonds delivered
shall be deposited in the Interest and Sinking Fund. There-
after, on or before the 15th day of January following the
deliver: or bonds and on or before the 15th dav of each ~onth
the~eaf~er, t~ere shall be deposited L, said Fu;d an amount of
money equal to not less th2n 1/12 of the next annual debt
service require:nen~ to beco~e due on the bonds then out-
sta:1ding.
The deposits to the Interes= and Sinki:1g Fund for the payment
of prin~i?al or ane interest on che bonds s~all continue to be
rna2e as hereinabQ~e provided until such ti~e as (i) the total
2-::::2''':-, t on aeDOS it in the In:eres t and S inking ~und is eaual to t'n e
asJ~nt re ui~ed to pay all outstanding bonds si2ilarly ;ecured
(principal and in~eres:::) or (ii) the bo~ds are no longer outstand-
ing, i.e, fully p~id as to principal and in;:erest or refunded.
..M....-".T-'...._~--------~ ...-.-----~._.,_.,.,..,.-,-.-......-.-.--."..,---..-"~~.-..__.
'l-c; -j rl;'.~i.....::
Page 8
Anv Dyoceeds of the bon2s n.:J'C rec:c::.rec: to cOElDlete the
i'Clprove=e;:::3 a:cd extens iO:ls to be T;''c2d2 'Co ~he Sys 'Ce:I1 a2d for T.,O"::,,,C'
the bonds are beir-g issued, shall be de?osi~ed :::0 the 12~erest
and Sinking Fund, and TIay be taken into consideration and reduce
tt.. <-.c r'" . . ., . - , .. L 1 "
de amOlEl L.. O..L con ~"-..Ly aepos 1 'Cs her2lTI20 ove prOVl cee Wi,:'Cn ...;o~::_ d
othe0Vise be re~c:ired to be deposi:::ed in the Irterest and Sin~ing
Fund from tne pledged appropriated net reven~es of t~2 Sys~e~.
SECTIO:.; -14: . That the City hereb,,"'__reeffi::::::s its r:-cior cO',re-
nant to tne holders of the Dre~iouslv- issued bonds an~ e2rees
with the holders of the bonds that it ...;ill provide for t:~e ac,::',:-
1 t. .c " .. d"" t.. ~ . .,
mu a lon o~, ana wnen aCCQ~u~ate , Wl..L~ tLLerearter contlnuous~y
maintain in t:--..e Reserve FLmd an amount equal 'Co not less thaI:. the
average annual prin2ipal and interest require~ents of the previ-
ously issued bonds and the bonds.
In accordance with the ordinance authorizing the issuance of
the previously issued bonds, there is currently on deposit ta
the credit or tae Reserve Fill1d an amOll.."1t equal to not less t,nan
$ 56,620 By reason of the issuance of the bonds, the acount
to be accuml~lated and maintained in the Reserve FQ~d is hereby
increased to the Reserve Fli.T1d Amount (specified in Section 8
hereof and which equals to not less than the average annual prin-
cipal and interest requirements or the outstanding previously
issued bonds a.rJ.d the bonds calculated on a ris cal year basis as
of the date of the bonds) and the City hereby covenan~s and agrees
that beginning on the 15th day of June, 1981, and on or berore
tbe 15th day of each month therearter Reserve Fund Deposits
(speciried in Section 8 thereof) shall be made to said Fund u~til
the a~ount or cash ~.d investDents therein totals not less 'C~an
the Reserve Fund A2ount. When the Reserve Fund Amount hes Oe2!l
fully aCCl..ur.ulated, _the Reserve Fund Deposits may be terminat2'~;
provided, however, should the amount on deposit in said Fund be
reduced belm.; the Reserve Fund AmOli.T1t, after the same has DeeD
accumulated, Reserve Fund Deposits shall be resumed as herein
specified and continued to be made on or before the 15th day of
each month wltil the Reserve Fund Amount has been fully restored.
Money in the Reserve Fund, ~t the option or the City, ~ay
be invested or reinvested from time to time in direct obligations
or obligations the principal and interest of wb;ch are guaranteed
by the United States of P~,erica or invested in direct obligations
0f or participation certificates guaranteed by the Federal In~~r-
mediate Credi t Banks, Federal Land Banks, Federal National Hortga~~e
Association, Federal Home Loan Banks, Ba~~s rorCooperatives, and
in certificates or deposit of any bank or trust company the depos}~
of which are fully secured by a pledge or securities of any or
the kinds hereinabove specified, such obligations or securities
to mature in not more than ten years rrOD date of such invest3ent.
~T1Y obligations in which money is so invested shall be kept in
escrow in the City's depositorj bank and shall be p~oDptly sold
and the proceeds of sale applied 'Co the making of payments requilcc
to be made rrom tae Reserve FWld whenever s~ch pay~ents are nec-
essery to be mace. The ~eserve Fund De~osits shail be subordinate
to th~se resuired to be ~de into the I;~erest and Sinking Fund.
SECTIO~ 15: Ir in a1.Y man~h the City s~a:l, ror any reason,
rail to pay into the Interest and Sinki!lg Fund and Reserve FC::1d,
the r1Jll a,ao"Jnts above=- stipulateJ, a=:cc.:r,::'s eq....:.i':a1ent to sech
deficiencies sr~~l be set 2~ar'C aGG p~ic i~:o s2id Fu~~s fro~ :::he
first ~vailable 2nc unalloc~ced net re~e~~e2 c= the Systelli in the
fo110winr Donth or m~nths, and suc~ p2y~en:s s~al1 be in addit~on
to the a:::a:l..lts hereinabove pra-,,-ided co ":"C:: o::-:e:-'..::.se paid inte; s2ic
Funds d~rinf, such munth or co~:hs.
S=CTIO~ 16: Any revenues in ex~e5S 0: :~ose required cc
es tab 1 is h anc sain tain the F'..mJ,S as .;:j o-.-e :"e:;'..::i :-ed Day be us eo :0:-
t'he redeoption of bonds sirr:.ila::-~y secu'!:"2G. 0:- ~C1:- any 12"...-ful.
purpase.
Page 9
SECT~ON 17: All mOTI2vS on denosit in ~~e Funds here~ofore
r''''r -~~....~,-~ ....,~--. p";"';'"') .,.-~ ~......;. ~a' -."'t 1'" .......,,.- ~.. J
~_ed.~eU i::._.~ ..~_._-'-J.. ~~a-,-r_-,-.u_a ::.na -'- !:Ie se,-e...e~ In the canner a::~
to the fullest exten~ percitted by the laws of Texas ror the se-
curitj" or public fli.:.l.cis, a::d moneys on deDosit in such Funds shalJ
be used only for the purposes perrr.;tted by this ordinance and the
ordinance aUL.hori::ing the previously issued bonds.
SECTIC~ :3: In addition to the right to issue bonds of
inferior li~__ 23 authorized by the laws of this State, the City
reserves the right hereafter to issue additional bonds. The
additional bonds when issued shall be payable from and secured
by a first lien on and pledge of the net revenues of the System
in the saGe ~2nner and to the same extent as are the bonds and the
previously issued bonds; and the previously issued bonds, the
bonds and the additional bonds authorized to be issued under t~is
section shall be in all respects of equal dignity. The additional
bonds may be issued in one or more installments. It is provided,
however. that none of the additional bonds shall be issued ~les~;
and ~ltil the following conditions have been IDet:
(a) The City is not then in default as to any covenant.
condition or obligation prescribed by the ordinances
authorizing the bonds similarly secured.
(b) Each of the Funds created and established for the
pay!TIent and security of bunds similarly secured contains
the amount of money then required to be on deposit therein.
(c) The net earnings of the System for (i) the completed
fiscal year next pre~eding the adoption of an ordinance
authorizing the issuance of the proposed additional bonds,
or (ii) the twelve (12) months next preceding the adoption
of such ordinance are equal to at least 1.20 ti~es the aver-
age annual principal and interest requirements of all the
bonds to be secured by a first lien on and pledge of the net
revenues of the System after giving effect to the issuance
of the proposed additional bonds, as such net earnings are
shown by a report by a Certified Public Accountant or a
Licens ed Public Accol.L."1tant. The tem "net eanlings II as
used in this Section shall mean the gross revenues after
deducting the expense of operation and maintenance, but
not deducting depreciation or expenditures which. under
stapdard accounting practice, should be charged to capital
exnendi ture.s .
(d) The additional bonds are made to mature on January 1
of each of the years in which they are scheduled to mature.
(e) The ordinance authorizing issuance of the additional
bands provides for the accurr.ulation in the Interest and
Sinking Fund of amounts sufficient to pay the principal of
and interest on such additional bonds as same mature.
(f) The ordinance authorizing issuance of additional bonds
provides that the a~Ollil.t to be accu~ula:ed and maintained
in the Reserve Fund (including the 2uount reeuired to be
deposited ~herein by ~he provisions of this ordinance) w~ll
be equal to not less than the average annual principal and
interest require~ent ror all bonds si~ilarly secured whic~
will be outstanding after giving erfect to t~e issuance of
the proposed additional bonds (such av~rage annual require-
ment to be calculated on a fiscal year basis as of the date
of Lie proposed additional bonds). A..n..~,- add1. tional Reserve
Flli'"1d Am~:)Unt shall be required (by such c~tl-_,~,rizing ordinance)
to be accu.rnulared therein \vithin ten calendar years of the
date of such proposed additional boncs_
rage 18
T~e b~nds similarly secured ~av be refunded (purs~ant t~
1 h "1 . 1 , . - 'ri' . h
any c.~~' 'CLen a',,'al aD.Le) UpO:1 sucn t.e::-p..s Cine. con""J..tlons as t,.e
City Council of the City may cee~ to t~e best interest of the
Ci~v a~d its i~habitants. anc if less t~~n all such oucstand~~~
bonds are ref'..l1.'"1c.ed, the prcpo.3 ed re fU!lding bonds shall be co:::s'Ld-
ered as "ado.:.ti::mal bondstl tL'"1der the pc:-ovisions of this Sectior~,
and the re?o:~ required in subdivision (c) shall give effect La
t~e issuan~e o~ the PToDosed ref~nding bonds (and shall not cive
. _ ~ 0
effect to bone:; being refu:1ced rollo~..;'ing their cancellation or
provision bei~g made for their paysent) .
SECTIO~ 19: The City hereby covenants, reaffi~s and
agrees to maintain the System in good condition and operate the
saLle in an ef:.:icient canner and at reasonab le cos t . ~o lc:mg as
a:1Y of tbe bonds similarly secured are outstanding, tne Clty
agrees to maintain insurance for the benefit of the holder or
holders of such bonds on the Svstem of a kind and in ~~ amOQ'"1t
which usually would be carriedJby private corr~anies engaged i~
a similar type of business. Nothing in this ordinance sball be
construed as requiring t.he City to expend any~ fUnd~derived frc~
sources other than the operation or the System, but nothing here-
in shall be construed as preventing the City from doi~g so.
SECTION 20: The City hereby covenants, reaffir~s and
agrees that so long as any of the bonds or ~'"1y interest thereon
remain outstanding and unpaid, it will keep and maintain a proper
and complete system of records and accounts pertaining to the
operation of the System in which c03plete and correct entries
shall be made of all transa~tions relating to said System, as pro-
~~ded by Article 1113, V.A.T.C.S., or ot~er applicable law, aud
tha~ the holder or holders of any of the bonds or any duly
authorized agent or agents of such holders shall have the righ~
at all reasonable times to inspect all such records, accou~ts and
data relating thereto, and to inspect the System and all proper-
ties comprising same. The City further agrees that within six=y
(60) days following the close of each fiscal year, it will cause
E::1 audit of such books and accounts to be made by an independent
=irm of Certified P~blic Accountants or Licensed Public Acco~'"1-
=ants. Each such audit, in addition to wnatever other matters
c..a.y be thought proper by the Certified Public Accountant, shall
?ar~icularly include the following:
(a) A detailed statemen= of the income and expenditures
of the System for such fiscal year;
(b) A balance sheet as of the end of such fiscal year;
(c) The Accountant's COID!Ilents regarding t.hE: manner in 'I..;hich
the City has carried out the requirements of this ordinance
and his recorrmendations for any changes or impro\.'ements
in the operation, records and accounts of the System;
(d) A list of the insurance Doli~ies in force at the end
of the fiscal year on t~e System's properties, se~ting out
as ~8 each policy the a=~unt thereof. t~e risk covered. the
r.ar::e of the ll>..:;.c....""2r. and the polic=:'s e::-:piration date;
(e) ~ list of the securities which h2ve ~een on deposit
as s22urity for the ~oney in t~e Interest an~ Sinking F~nd
'.__ ' _- the ~l'sr"""'" T~---- ":l 1;..._ o~ .....:-.... Sc>r-u-';t~es 1'';=
t.r-c~ougr.OUL .. .I. ~c.~ J <.::::._, c .1._::> L -'- L"e ___.L-'" -'- , "-
any in which the Reser~e Fund has bee:1 i~vested, and a
- ,
s ta t~went of the r.:anr-cer in \.;hic:; coney ;" :11 c Sys tes Fund
has been secured in suc~ fiscal year:
c=) The nu::.bey of prope:-ties connectec :,-it[! the Svster:-..
"'~_._"'---r-"'--'-'-~..'_.__."-"'~~"-'-'-'--"--"-_..__.~------,--,._,
P?'(]e 11
Expenses inc'.1r::.-ed in oaking the a"Jci -cs above refe:::-red
to are to be regarded as caintenance and op2ra=i~g ex~e~ses
and paid as such. The Ci-c'{ shell funo.ish t,o c.n.J ho:'der of
any of the bonds a~ the written req"Jest or s~c~- ho~der, not
more than thirty (30) days efter the close of each six oonths'
fiscal period, co~plete operating and inco~e state~en-cs of the
Sys"[elli in reasonajle detail coverina such six 20nths' pe~iod
... U'" ,
and not mere than sixty (60) days after the c~ose of each fiscal
year, COIT.?~ete operating state2ents of the S:s=e~ in reasonable
de-cail covering such fiscal year, certified b: independent
auditors.
SECTION 21: In addition to all "[he rlZ~LS and re~edies
provided by the laws of the Scate of Texas,~the City covenants
and agrees particularly that in the event the City (a) defaults
in the paywents to be made to the Funds herein established, or
(b) defaults in the observance or perrorwance of any other of the
covenants, conditions or obligations set forth in this ordineDce,
the holder or holders of anv of the bonds shall be entitled to
a ......rit of mandamus issued b:: a court of proper jurisdiction COIIl-'
pelling and requiring the governing body of the Cicy and other
officers of the City to obs er\;e and p erforrr: 2.:1~: coveneD t, condi-
tion' or obligation prescribed in this ordinance.
No delay or omission to excercise 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
default or acquiescence therein, and every such right and
pOwer may be exercised freIIl time to time and as oIcen as may
be deemed ex~edient. The specific remedies heTein provided
shall be cl~~lative of all other existing re=edies and the
specific2-cions to such remedies shall not be ceemed to be
exclusive..
SECTION 22:
The City hereby fur~her covenants as follows:
(a) That it has the lawful power to ple~ge the revenues
supporting this :issue of bonds and has la-::.~fully exercis ed
said power under the Constitution and l2~s of the State
of Texas, including said power existing under Art~cles 1111
et seq., V.A.T.C.S.; that the bonds and the previously
issued bonds shall be ratably secured unde~ said pledge of
income in such manner that one bond shall ~ave no preference
over any other bond of said issues.
(b) That other than for the payment of che bonds and the
previously issued bonds, the net revenues of the System
have not in any manner been pledged to the pa}rment of any
debt or obligation of the City or of the System.
(c) That so long as any bonds similarl: secured or any
incerest thereon remain outstanding, the City will not
sell or enc~ilber the Syscem or any subsL~Ltial part
thereof, provided that this shall not 82 construed to
p~ohibit the sale of such oachinery, o~ oLher properties
or eGUiD~en~ which has become obsolete O~ ot~e~~ise lli!-
suit~d to the efficient o~eration of -c~e S,stem; also,
with the exception of additional bones ~ssued in accorcence
with the ter2S and conditions of this c~~~n2nce, i~ ~ill
not enclL.-::b er the net reV2:1UeS thereo f -.::-:-". es s such encu:::':J ~.J."C e
is !Lade junior and su'6ordinate to all 0: :-,~e proi.'isio:1s O:L
chis ordir.ance.
(d) That no free service of the Syst~= s~all be allo~ed.
a~d should the City o~ any of its agen~s or instru=en~a-
lities make use of the services ane f2ci~ities of the
SysLem, pay;-::ent or the reasona:,le '1.'21"-12 :::'.-2::-e:-: sh~ll be
made by the City out or funds rrom so-.:r:~~ other chtin
the revenues and inco~e of the Syste=.
.-.---r....--'-..--..-..-----.-----.......
Face 12
(e) To the extenc tha~ it legally nay, ~he City
further cov~na~ts and agrees that, so- lo~g as any of
the bonds similarly secured or any interest therea~ are
outstand~ng, no franchise shall be grantee for t~e
installacion or operation of any conpetin~ ~ate~~0rks
or sewer systen, that the City will prohibit th2 e?eration
of any water system or sewer systen other than t~8se
owued by the City, and the operation of any sucr. systeLS
by anyone other than the City is hereby prohibi~ed.
SECTION 23: The bonds are special obligations of the City
payable from the pledged revenues, and the holders t~er~of shall
never have the right to demand pa]1TIent thereof out of fends
raised or to be raised by taxation.
SECTION 2~: Each of the bonds herein authorized shall be
deeIiled and cons;:rued to be a llsecl1rityl', and as such a negotiable
instrument, within the meaning of Arcicle 8 of the Uniform Co~-
mercial Code.
SECTION 25: The Mayor 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 Scate of
Texas, ~~d shall take and have charge and control of the bones
herein authorized pending their approval by the Attorney General
and their registration by the Comptroller of Public Accounts and
delivery to the purchasers thereof.
SECTION 26: The bonds herein authorized are hereby sold
to the Uniced States of America, Farmers Home Aci8inistratio~,
United States Deparc2enc of Agriculture at the price of par.
Delivery of the bones shall be made to said pur~~aser as soon
as may be after the adoption of this ordinance, upon payment
therefor in accordance with the terms of sale.
SECTION 27: The City hereby certifies and covenants that
the proceeds of the bonds are needed at this time to finance
the costs of captial im?rove~ents planned by the City; based o~
current racts, estima~es and circumstances, it is reasonablv
expected final disbursement of the bond proceeds will occur"with-
in three years from the date of the receipt thereof by thE City;
it is not =easonably expected that the proceeds of the bonds or
moneys deposited in the special F~~ds created for the paynen= a~~
secuTity of the bo~ds '\-lill be used or L'l-,;-estec in a mar::1er tn2.t
would cat:s e the bO:1ds to be "arb it rage 'bonds" '\.;i thin the Ii1e a::ing
of Sect:ic:1 I03 (c) of the Inte~al Revenue Cede of 1954, as a;::enGcd.
or any =e~ulations or Dl1blished rulinEs De~taini:1~ thereto: and
save ~nd ~xcept for th~ special Funds're~er=eG to~herein, ~o
other funds or accounts have 'been established or pledged for the
pay~ent 0= the bonds. Prope~ officers or the City charged with
the responsibilitv in the isst:ance of ~he bones are herebv
authorized and di~ected to cake, exec~te anc deliver certifica-
tions as to facts, esti~ates ~nd cirC~=5=2~=es in existence as
of th~ d'::~ of ~he i3S~2 ~! :~e bonds ~~d s:~=i~~ whet~er there
are any iaccs, es~i~ates 0= cirC~2st2~_~~ ~~ic~ ~o~ld =ateri21l~
Page 13
change the City's current expec~ctions, and ~~e CO~2~an~s he~ei~
made and certifications her2~~ 2~~~orized are :or =he ~e~efit 0:
the holders of the bonds and =2': De reli.ed i.lvon D''- ::"e :,ondho::"'cer;;
and bond counsel for the Cit=.-. - -
FIRST READING on the
5th .::ay of
~1ov
'1 0 ~ 1
,. .-..JV.-.
SECOND READING on the lS,th C2~; 0: ~1av
1981.
?~3SED .~~D ADO?~~D on this
, 1951.
THIRD AND FINA..L RE..A.DING,
the 2nd day of June
rH ~d ~~ Texas
ATTEST:
~
C i''t'Y
(City Seal)
.- "-"--_._..._-_.._~.._-t.
P?'~e J.4
EXHIBIT
JI. "
rl
$1,000
NO.
l.JNITED STALES 0: Al'~Rlc..\
STATE OF TEXAS
CO mrIY 0 F T ARPANT
CITY OF COLLEYVILLE, TEXAS, l.JTILITY SYSTE[.~
REVENUE nOND, SERIES 1981
THE CITY OF COLLEYVILLE, a 8Q~icipal co~?oration of the
State of Texas, hereby acknowledges itself indebted to and FOR
VALUE RECEIVED hereby promises to pay to t~e United States of
America, Farmers Home Ad3inist~ation, or its registered asslg~s,
as hereinafter stated, the s~ of
ONE THOUSA.;.'1D DOLLARS
($1,000), In lawful money of the United St:2i:.eS of America, on
the FIRST DAY OF JANUARY, , with interest thereon fres
the date of delivery of this bond co the initial Durchaser ur.tj,l
paid at the rate of FI\L PER CENTill1 (5%) per annQ~, payable O~
January 1 next following its delivery date, 2nd annually there-
after on January 1 in each year, and both principal of and inte~-
est on this bond are paY2ble only to the registered m,mer as th =
s~e 2ppears on the booKs of the Registr2r 0= the series of bones
of which this is one.
PRINCIPAL of this bond sh2ll be payable at THE FIRST NATIO~~"',,-.
BANK OF FORT WORTH, Fort Worth, , Texas (the "Registrar"),
upon its presentation and surrenaer, and interest thereon shall
be payable at the most recent address of the registe.red mv"TIer
sho~ll- on the books of the Registrar; and the City of Colleyville,
Tex2s, is hereby held and firmly bound to apply the pledged
aDDro:Jriated net revenues of i r:s coiIibinec ~';al:envorks and Sanir_ar:
Se~.;er- System to the pro::lpt pay:nenr: of princip2l and ir:terest on "
this bond at maturity and to pay said principal and interest a5
they matUre.
THIS BOND is one of a series of bonds, dated April 1, 1981,
numbered consecutively from One(l) through Fourteen Hundred
(1,400), each in the denomination of One Thousand Dollars
($1,000), aggregating in principal amount ONE ~rrLLIO~ FOUR
Hill~DRED THOUSAND DOLLARS ($1,400,000), issued for the purpose
of making improvements and extensions to the City's combined
WateD~orks and Sanita~l Sewer System, to wit: construct, extend
and improve water supply, storage and distribution facilities,
in ac.:ordance "lith the Cons ti tution and 12'\-."5 of the S tate of Te:.::2.s,
particularly Articles 1111 et sea. and 2363c, V.A.T.C.S., and
p~rsua~ t t?~ an ordinance J:as s ~d by th~ ~i. ~:: C?Ul'lC~ 1 0 f the: Ci ~y
c: Co~leyvLl~e, Texas, 2nd d~lY recoraes l~ ~~e C1Dutes 0= sal~
CiI:Y CoU;.,cil.
AS SPECIFIED in the ordinance here~na~~~e ~entioned, the
City reserves the righ~ to recee~ the Dcnds of 5~id series
natu,:-ing 0:1 January 1, 1992, and s:.:.bse~'...:.e:-!;:, in ',,7':-101e or in p.::::::
(bu.t in in~erse n~~erical order i~ less than 2ll), on January l.
-'co-l ~ -~ .......r . te-es~ D"'-~-.-~"~- c.....re t:-.~---=""-e"Y ........ -~e p~;ce""'':
.L~~ , o~ I.. Cn) ~n ~ _. c.;.jL.._._.,_, ~_ _"__~<:'_~:' c~'- ...., '. ~- . v_
Da~ ~~..J "C'l~e..J In+-e-.::>s- co -"".=0 --t";::. 0- ~c.-",--,;-;-"." anG ,~ ..,--
. ..:..... G.LJ..\..... 0."- L_"""':' L. ..:...~........ _L._....:- ~;::.__ __.L~..t..-_._..=-'__~:"". 1 ..'........l..~ CA"--.
..J'_.;.,.., d ~'n t'hP pe~'oc 0- ---,'" -n" r.- '---""-1"" o~ tn's --~,~-
c.:..,-_o.". t.:...l_g ."_ ..._. __~_:.J'- ,:,-"": ,:,'_.__ce ~:L'-::> .L_ J.. :-t::._._,-~",
are reglstered In the ~c~e 0: :~e :..~~t:..~_ P'~~L~?se~ (ra~.ers nC~2
A. . ;-- -' ) t"-1c. C"t\' .,...,=.--.,....,-,~ -".-,- -;_....- -r Y"e""ee...... su~"'-' b~"""::-
.c.::r:..n.l.::>Lra,-lO:1, ..~ ::~' __:::>e_",,-_ Ll.c'.__::__., C.v . U. l., _,-.l v"'_~,'
. . 1 r.. "~e""'e"f' ;.It" -~" "'-0 -- ~\"'e nrlce o~ D-~ --"
lr.'~;:lO e or any pa_~ ,-l. _ u_, __ C~ol-' L_.,,_ ""_ _.. ~~ .L . c._ C.,~
, . PR01'TD1:'D "O.'~'T-"" " h' - (30)
accrueG In:e!:'e''t; .. :~, ~ . h ,'I!:.'-.!:."\., LI,2.: .:=.C _l~(lst t lrLY , C2.':~.
p~ior to a Ja~ any of said bo~ds are ~o ~e ~eceeGed. a notice
0: re.:ie::J.ption .:;igned by the Ci.,:y Se.:ret3.:-:-' (,;~ecifying the se:-i2l
p;:>qe 1:)
nusbers ~id 22o~nts of bo~es to be redee~ed), s~all h~ve been
sent bv fi~3~ class nail, postage DreDaid, to the reg~s~ered
own2r(~) o~ ~he bonds to b~ ~edeeD~d,'at the address ap?ea~ing
o~ the re;is~e~ maintained by the Regis~rar; ane if Lhe City shal~
, ..::I . 1 ' 1 . R. b h' .c . .
flave 1,'a....2 aVa2.._cD e to tt"'te eglstrar y t e Gate OL reGe2pt::.on
flli~ds ia a=Qu~ts sufrici~~~ to pay the bonds to be receeoed and
accrued i~=ere3t the~eon, any bond or bonds no~ prese~~ed fo~
redemption pursuant to such notice shall cease to bear i~terest
from and a=~er the date so fixed for redemption.
TdIS BO~D and the series of which it is a part constitute
special obligations or the City of Colleyville, Texas, and,
together with the outstanding previously issued Donds (identified
a~d d2fined in the ordinance authorizing the issuance of this
series of bonds) are payable solely rrom and equally secured by
a fiys t lie~ en and pledge of the net revenues of the City I s..~
co~binec Waterworks '&~d S81itary Sewer Systelli; and fo~ a mOLe
complete statement of the covenants and provisions relating
to the payment and security or the series of bonds of which this
bond is one, reference is hereby made to the ordinaace authoriz-
ing this series of bonds.
THE CITY expressly reserves the right to issue further and
additional obligations on a parity with the previously issued
b.:mds and the bonds of this series; PROVIDED, Hm-JEVER, that 2.ny
and all such addition2.1 parity obligations may be issued only in
accordance with and subject to the covenants, conditions,
limitations and restrictions relating thereto which a::-2 set out
and contained in the ordinance authorizing this series of bonds
and to which ordinance rererence is hereby made ror more corro.?let t:
and full particulars.
TilE HOLDER hereof shall never have the rlgnr to de~and
payment of this obligat ion out of any funds rais ed OI to be
raised by taxation.
~~D IT IS HEREBY CERTIFIED AND RECITED th2.t the issuance
of this bond, and the series of which it is a part, is duly
authorized by law; th~t all acts, conditions and things
required to exist an~ to be done precedent to and in the
issuance of this bond to render the same lawful and valid
have been properly done, have happened and have been perfo~2d
in regul2.T and due time, rorm and manner as required ~y th~
Constitution and laws of the State of Texas and the crdinance
hereinabove mentioned; that this series of revenue bo~ds does not
exceed any constitutional or statutory limitatio~; ane that
provision has been made for the payment 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 the combined \~aLerwo~ks
and Sc:nitary Se\.;er System of the City of Colleyville, Texas.
IN TESTIHO~-ry ~.JHEREOF, the City Council of the City of
Ccllcj~~lle, Texas, in accordance with the provisions of
Ar~iclE 717j-l, V.A.T.C.S., has caused the seal or said City
to ~2 i=Jressed or a facsi~ile the~eof to be D~in~ed hereon,
and this. DOne to be executed with the imp~~nteG racsi=ile
sign5.tu~es or the Hayor and City Secretary of said City.
:12Yol!!y ~l~~S
-~
/
corT""~T""')~-":" r"rJ:"T)o. ~
u.,j',d~ -"".;,.-- . /i(i
~/ 'f l .
~~ad4 ~I:~
Cu:y Se.::retary (/
City of Colleyville, Texas
.... ..'-----'...'..T-...---'.-..'.'--.--