HomeMy WebLinkAboutOrdinances (O-75-195)-01/21/1975
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ORDINANCE 0-75-195 .
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AN ORDINANCE 1;>y the City Council of the City of
Colleyville, Texas, authorizing the issuance of
$1,400,000 "CITY OF COLLEYVILLE, TEXAS, WATERWORKS
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1975,"
dated January 1, 1975, for the purpose of acquiring
an existing utility system to wit: a waterworks
~i~tribution system; making provision for the
payment and security of such obligations; and
declaring an emergency.
WHEREAS, under the provisions of Article 2368.1,
V.A.T.C.S., the governing body of a City is authorized to
i~sue .c~rtificates of obligation payable from revenues for
the purpose of acquiring an existing utility system; and
WHEREAS, pursuant to a resolution heretofore passed by
this governing body, notice of intention to issue certificates
of obligation of this City payable from net revenues of the
City's waterworks system, in an amount not to exceed. $1,400,000
for the purpose of acquiring an existing utility system, to
wit: a waterworks distribution system, in order that the
same may be a part of the City1s water supply and
distribution system, was duly published in a newspaper of
general circulation in. said City on the ~ day of~an
1975, and the 21st day of Jan. , l~the day aT die
first publication of said notice being at least fourteen
(14) days prior to the date set for the passage of this
ordinance; and
WHEREAS, no petition of any kind or character has been
filed with the City Secretary, any member of the Councilor
any other official of the City, protesting the issuance of
such certificates; and
WHEREAS, this Council is now authorized and empowered
to proceed with the issuance of said certificates of obli-
gation and to sell the same for cash; now therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
COLLEYVILLE, TEXAS:
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SECTION 1: That for the purpose of acquiring an
existing utillty system, to wit: a waterworks distribution
system, in order that the same may be a part of the City's
water supply and distribution system, there shall
be and there is hereby ordered to be issued, under and by
virtue of the Constitution and laws of the State of Texas,
particularly Article 2368a.1, V.A.T.C.S., a series of certi-
ficates of obligation of the City of Colleyville, Texas, to
be known as "CITY OF COLLEYVILLE, TEXAS, WATERWORKS REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1975," in the principal
amount of ONE MILLION FOUR HUNDRED THOUSAND DOLLARS ($1,400,000),
payable from and secured by a first lien on and pledge of
the net revenues of the City's Waterworks System.
SECTION 2: That said certificates shall be dated
January 1, 1915, shall be numbered consecutively from one
(1) through two hundred eighty (280), shall each be in the
denomination of Five Thousand Dollars ($5,000), and shall
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become due and payable serially on January 1 in each of the
years in accordance with the following schedule:
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CERTIFICATE NUMBERS
II (All inclusive) YEAR AMOUNT
1 1978 $ 5,000
2 1979 5,000
3 and 4 1980 10,000
5 and 6 1981 10,000
7 and 8 1982 10,000
9 and 10 1983 10,000
11 to 13 1984 15,000
14 to 16 1985 15,000
17 to 19 1986 15,000
20 to 23 1987 20,000
24 to 27 1988 20,000
28 to 31 1989 20,000
32 to 36 1990 25,000
37 to 41 1991 25,000
42 to 46 1992 25,000
47 to 52 1993 30,000
51 to 58 1994 30,000
59 to 65 1995 35,000
66 to 72 1996 35,000
73 to 80 1997 40,000
81 to 88 1998 40,000
89 to 97 1999 45,000
98 to 106 2000 45,000
107 to 116 2001 50,000
117 to 127 2002 55,000
128 to 138 2003 55,000
139 to 150 2004 60,000
151 to 161 2005 55,000
162 to 172 2006 55,000
173 to 183 2007 55,000
184 to 195 2008 60,000
196 to 207 2009 60,000
208 to 220 2010 65,000
221 to 232 2011 60,000
233 to 244 2012 60,000
245 to 256 2013 60,000
257 to 268 2014 60,000
269 to 280 2015 60,000
PROVIDED, HOWEVER, the City reserves the right to redeem the
certificates of this series maturing on January 1, 1987, and
subsequent, in whole or in part (but in inverse numerical
order if less than all), on January 1, 1986, or any interest
payment date thereafter, at the price of par and accrued
interest to the date of redemption; and, in addition,
during the period of time any of the certificates of this
series are registered in the name of the initial purchaser
(Farmers Home Administration), the City reserves the right
to redeem any of such certificates at any time at the price
of par and accrued interest; PROVIDED, FURTHER, that at
least thirty (30) days prior to a date any certificates are
to be redeemed, notice of redemption signed by the City
Secretary (specifying the serial numbers and amount of
certificates to be redeemed) shall have been filed with the
paying agent named in each of said certificates; and if by
.---.--....--- the date so fixed for redemption the City shall have made
available funds in amounts to pay the certificates called
for redemption and accrued interest thereon, any certificate
or certificates not presented for redemption pursuant to
said notice shall cease to bear interest from and after the
date so fixed for redemption.
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SECTION 3: That said certificates shall bear
interest from-the date of their delivery to the purchaser
until paid at the rate of 5% per annum; and said interest
shall be payable January 1 next following the delivery date
and annually thereafter on January 1 of each year. An
endorsement by the City Secretary indicating the date of
delivery shall be placed on each certificate in the registration
ledger provided in Section 7 hereof.
SECTION 4: That said certificates shall be payable
as to principal and interest to the registered holder thereof
in lawful money of the United States of America, without
exchange or collection charges, at the paying agent. The
principal of said certificates shall be paid as they mature
upon presentation and surrender thereof; and, interest shall
be paid to the registered holder or holders of such certificates
without their presentation.
SECTION 5: The seal of said City may be impressed
on each of saId certificates, or, in the alternative, a
facsimile of such seal may be printed on the said certifi-
cates. The certificates may be executed by the imprinted
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 had been signed by the Mayor and
City Secretary in person by their manual signatures. Inasmuch
as such certificates are required to be registered by the
Comptroller of Public Accounts for 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 thereon, as hereinafter
provided, all in accordance with the provisions of Article
7l7j-l, V.A.T.C.S.
SECTION 6: That the certificates shall be in conformity
with the provIsions of this ordinance and shall be in the
form prescribed by bond counsel, attached hereto &S Exhibit
A and made a part hereof for all purposes.
The Comptroller's Registration Certificate shall be
substantially in the following form and shall be printed on
the back of each certificate:
STATE OF TEXAS
I
I
I
REGISTER NO.
OFFICE OF COMPTROLLER
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
special obligation of the City issuing the same, payable
from the revenues pledged to its payment by and in the
ordinance authorizing same, and said certificate has this
day been registered by me.
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas,
Comptroller of Public Accounts
of the State of Texas
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SECTION 7: Both principal of and interest on the
series of certificates shall be payable only to the regis-
tered owner or owners thereof as the same appears on the
books of the Registrar. The City Secretary shall serve as
Registrar for this issue of certificates and the transfer of
title to any certificates of this series shall be accom-
plished only upon surrender of the certificates desired to
be transferred at the office of the City Secretary, together
with an assignment duly executed by the registered owner in
such form and with such guaranteed signatures as shall be
satisfactory to the Registrar. Upon any such transfer of
title, the Registrar shall (i) note in the Registration
Books for this issue of certificates the serial numbers of
the certificates transferred, the date of transfer and the
name of the new registered owner; and (ii) endorse the
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 any such certificates
shall be made only to or 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 purchaser in the manner provided in this
Section. .
The Registration Ledger to be printed on the back of
each certificate shall be substantially in the following
form:
REGISTRATION LEDGER
Date of
Registration
Registered Owner
Registrar IS
Authorized Signature
SECTION 8: For all purposes of this ordinance, the
following defrnitions are provided:
(a) The term "Reserve Fund Amountll shall mean the
total amount required to be accumulated in the Reserve Fund
to provide security for the payment of certificates, and
during the time the certificates authorized hereunder are
outstanding, such amount shall be not less than $ 83.000.00
(b) The term IIbond counselll shall mean the law firm of
Dumas, Huguenin, Boothman and Morrow, Attorneys at Law,
Dallas, Texas.
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(c) The term "certificates" means the certificates
authorized by this ordinance and obligations (bonds or cer-
tificates) issued on a parity therewith.
(d) The term "Cityll shall mean the incorporated municipality
known as the City of Colleyville, Texas.
VOLUME J1f PAGE :l.:1/
(e) The term "City Secretary" shall mean the person
who acts as City Secretary or City Clerk of the City~ irrespective
of the particular title given to such official.
(f) The term "fiscal year" shall mean the twelve-month
operational period of the system ending each year on Sept.-~
(g) The term "maintenance and operation expenses"
shall mean only those expenses required or permitted by the
provisions of Article 1113, V.A.T.C.S. I to be a first lien
and charge against the income of the system.
(h) The term "Reserve Fund Deposits" shall mean the
monthly deposits required to be made to the Reserve Fund for
purposes of accumulating and maintaining the Reserve Fund
Amount, and during the time the certificates authcrized
hereunder are outstanding, such monthly deposits shall equal
not less than $ 691.67
(i) The term "net revenues" shall mean all income and
revenues of the system less maintenance and operation expenses.
(j) The term "paying agent" shall mean Farmers Horne
Administration, Finance Office, St. Louis, Missouri.
(k) The term "system" shall mean and include the
waterworks system of the City, together with any additions
and extensions thereto and improvements and replacements
thereof hereafter contracted or acquired.
SECTION 9: All of the net revenues of the system,
with the exception of those in excess of the amounts"re-
quired to establish and maintain the Funds as hereinafter
provided, are hereby irrevocably pledged for the payment of
the certificates and the interest thereon, and it is hereby
ordained that the certificates and the interest thereon
shall constitute a first lien upon said net revenues.
SECTION 10: The City covenants and agrees with the
holders of the-certificates:
(a) That it will at all times charge and collect
for services rendered by the system rates sufficient to
pay all operating, maintenance, depreciation, replacement
and betterment expenses, and other costs deductible in
determining net revenues and to pay the interest on and
principal of the certificates and to establish and
maintain the Funds as hereinafter provided;
(b) If additional certificates are issued, or if
the system should become legally liable for any other
indebtedness, the City will fix and maintain rates and
collect charges for the services of the system sufficient
to discharge such indebtedness.
SECTION 11: All revenues derived from the operation
of the system-Shall be kept separate from other funds of the
City. To that end the following special Funds are hereby
created:
(a) Waterworks System Fund, hereinafter called
"System Fund". This Fund shall be kept in the City's
depository bank.
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(b) Waterworks System Interest and Sinking Fund,
hereinafter called "Interest and Sinking Fundi'. This
Fund shall be deposited with the City's depository bank
as Trustee of the pledged revenues, and shall be used
to pay principal of and interest on the certificates
when and as the same shall become due and payable.
(c) Waterworks System Reserve Fund, hereinafter
called "Reserve Fund". This Fund shall be deposited
with the Cityls depository bank as Trustee of the
pledged revenues, and shall be used to pay principal of
and interest on the certificates falling due at any
time when there is not sufficient money available in
the Interest and Sinking Fund.
Nothing herein shall be construed as prohibiting the placing
of the name of the City at the beginning of the name of each
Fund if it is found the same will assist in identification
thereof.
SECTION 12: All revenues of every nature received
through the operation of the system shall be deposited frem
day to day as collected into the System Fund, and the reason-
able and proper expenses of operating and maintaining the
system as set forth in Section 8 (g) hereof shall be paid
therefrom upon approval of this governing body. All revenues
of the system not actually required to pay expenses and
costs incurred as permitted by this Section shall be anpro-
priated and used for the purposes and in the order of precedence
hereinafter set forth.
SECTION 13: Immediately following the delivery of
certificates,~he City Treasurer shall (i) calculate the
amount of debt service requirements to become due on the
certificates delivered (the amount of principal and interest,
either or both) on the interest payment date next following
the delivery of such certificates; and (ii) cause to be
deposited to the Interest and Sinking Fund on or before the
15th day of each month between the date of delivery of such
certificates and the interest payment date next following in
substantially 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 initial interest
payment date on the certificates delivered; provided, however,
if any certificates are delivered within tWenty (20) days of
an interest payment date, then the full amount of the debt
service requirements to become due on the certificates
delivered shall be deposited to the Interest and Sinking
Fund. Thereafter, on or before the 15th day of January
following the delivery of certificates and on or before the
15th day of each month thereafter the City shall deposit in
said fund an amount of money equal to not less than 1/12 of
the next annual debt service requirement. Said monthly
deposits shall continue to be made until such time as the
amounts on deposit in the Interest and Sinking Fund and
Reserve Fund are equal to the amount of the outstanding
indebtedness which said Funds were established to pay. In
the event the income and revenues of the system are insuffi~ient
in any month to make the required deposits aforesaid in full
accordance with the provisions hereof, then the amount of
any deficiency shall be added to the amount otherwise required
to be deposited in said Fund in the next month until all
deficiencies are rectified. Any proceeds of the certificates
found not to be req~ired for the improvements and extensions
to the system in accordance witl1 the authority for the
issuance of such bonds shall also be placed in this Fund,
VOLUME 7lf. PAGE (.JE
which shall reduce by such amount the- sums which would
otherwise be required to be placed therein from the revenues
of the system.
SECTION 14: Reserve Fund. The Reserve Fund shall be used to
pay principal of or interest on the certificates falling due at
any time when there is insufficient money available in the Interest
and Sinking Fund. Until the Reserve Fund Amount (specified in
the definition contained in Section 8 hereof) has been accumulated,
Reserve Fund Deposits (as specified in definition in Section 8
hereof) shall be made on or before the 15th day of each month and
the initial Reserve Fund Deposits shall be made on or before the 15th
day of the second January following the delivery of any certificate
or certificates of this series. Should any funds be withdrawn from
such Fund after the Reserve has been fully accumulated, then Reserve
Fund Deposits shall be resumed and continued to be made on or be-
fore the 15th day of each month until the Reserve Fund Amount has
been again accumulated. Money in the Reserve Fund, at the option
of the City, may be invested or reinvested from time to time in
direct obligations or obligations the principal and interest of
which are guaranteed by the United States of America or invested in
direct obligations of or participation certificates guaranteed
by the Federal Intermediate Credit Banks, Federal Land Banks,
Federal National Mortgage Association, Federal Home Loan Banks,
Banks for Cooperatives, and in certificates of deposit of any bank
or trust company the deposits of which are fully secured by a pledge
of securities of any of the kinds hereinabove specified, such obli-
gations or securities to mature in not more than ten years from date
of such investment. Any obligations in which money is so invested
shall be kept in escrow in the City's depository bank and shall be
promptly sold and the proceeds of sale applied to the making of
payments required to be made from the Reserve Fund whenever such
payments are necessary to be made. The Reserve Fund Deposits shall
be subordinate to those required to be made into the Interest and
Sinking Fund.
SECTION 15: If in any month the City shall, for any
reason, fail to pay into the Interest and Sinking Fund and
Reserve Fund the full amounts above stipulated, amounts
equivalent to such deficiencies shall be set apart and paid
into said Funds from the first available and unallocated net
revenues of the following month or months and such payments
shall be in addition to the amounts hereinabove provided to
be otherwise paid into said Funds during each month or
months.
SECTION 16: Any revenues in excess of those required
to establish and maintain the Funds as hereinabove required
may be used for the redemption of the certificates, or may
be transferred to the general fund of the City and used for
general or special purposes.
SECTION 17: All Funds for which this ordinance makes
provision (except any portion thereof as may be at any time
____._____properly invested) shall be secured i~ ~he manner and to t~e
fullest extent required by the laws ot lexas for the secur1ty
of public funds, and such Funds shall be used for the purposes
permitted by this ordinance.
SECTION 18: In addition to the right to issue
certificates or revenue bonds of inferior lien as authorized
by the laws of this State, the City reserves the right
hereafter to issue additional parity certificates. The
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additional certificates, when issued, shall be payable from
and secured by a first lien on and pledge of the net revenues
of the system in the same manner and to the same extent as
are the certificates authorized by this ordinance, and the
certificates and the additional certificates shall in all
respects be of equal dignity. The additional certificates
may be issued in one or more installments, provided, however,
that none shall be issued unless and until the following
conditions have been met:
(a) The City is not then in default as to any
covenant, condition or obligation prescribed by
the ordinances.authorizing the certificates.
(b) Each of the Funds created by this ordinance
contains the amount of money then required to be on
deposit therein.
(c) The net earnings of the system for (i) the
Cityls completed fiscal year next preceding the adoption
of an ordinance authorizing the issuance of the proposed
additional certificates, of (ii) the twelve (12) months
next preceding the adoption of such ordinance are equal
to at least 1.20 times the average annual principal and
interest requirements of all the certificates 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 certificates, as such net
earnings are shown by a report by a Certified Public
Accountant or a Licensed Public Accountant. The term
"net earnings" 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 standard accounting practice,
should be charged to capital expenditures.
(d) The additional certificates 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 certificates provides for the accumulation
in the Interest and Sinking Fund of amounts sufficient
to pay the principal of and interest on such additional
certificates as same mature.
(f) The ordinance authorizing issuance of additional
certificates provides that the amount to be accumulated
and maintained in the Reserve Fund (including the
amount required to be deposited therein by the provisions
of this ordinance) will be equal to not less than the
average annual principal and interest requirement for
all obligations similarly secured and on a parity with
the certificates which will be outstanding after giving
effect to the issuance of the proposed additional
obligations (such average annual requirement to be
. calculated on a fiscal year basis as of the date of the
proposed additional obligations). Any additional
Reserve Fund Amount shall be required (by such authorizing
ordinance) to be accumulated therein within ten calendar
years of the date of such proposed additional bonds.
PROVIDED, HOWEVER, any or all of the conditions here-
inabove set forth for the issuance of additional obligations,
VOLUME 1]tPAGE.:<:25
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may be waived by an instrument or instruments in writing
executed by the holders of at least 75% of the principal
amounts of certificates outstanding.
The certificates may be refunded (pursuant to any law
then available) upon such terms and conditions as the City
Council of the City may deem to the best interest of the
City and its inhabitants, and if less than all such outstanding
certificates are refunded, the proposed refunding bonds
shall be considered as "additional obligations" under the
provisions of this Section, and the report required in
subdivision (c) shall give effect to the issuance of the
proposed refunding bonds (and shall not give effect to
obligations being refunded following their cancellation or
provision being made for their payment).
SECTION 19: The City shall maintain the system in
good condition-and operate the same in an efficient manner
and at reasonable cost. So long as any of the certificates
are outstanding, the City agrees to maintain insurance for
the benefit of the holder or holders of the certificates on
the system of a kind and in an amount which usually would be
carried by private companies engaged in a similar type of
business. Nothing in this ordinance shall be construed as
requiring the City to expend any funds derived from sources
other than the operation of the system, but nothing herein
shall be construed as preventing the City from doing so.
SECTION 20: The City hereby covenants and agrees
that so long as any of the certificates or any 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 complete
and correct entries shall be made of all transactions relating
to said system, as provided in Article 1113, V.A.T.C.S., and
that the holder or holders of any of the certificates or any
duly authorized agent or agents of such holders shall have
the right at all reasonable times to inspect all such records,
accounts and data relating thereto, and to inspect the
system and all properties comprising same. The City further
agrees that within sixty (60) days following the close of
each fiscal year, it will cause an audit of such books and
accounts to be made by an independent firm of Certified
Public Accountants or Licensed Public Accountants. Each
such audit, in addition to whatever other matters may be
thought proper by the Accountant, shall particularly include
the following:
(a) A detailed statement of the income and expendi-
tures of the system for such fiscal year;
(b) A balance sheet as of the end of such fiscal year;
(c) The Accountantls comments regarding the manner
in which the City has carried out the requirements of
this ordinance and his recommendations for any changes
or improvements in the operation, records and accounts
of the system;
(d) A list of the insurance policies in force at the
end of the fiscal year on the system properties, setting
out as to each policy the amount thereof, the risk
covered, the name of the insurer, and the policy's
expiration date;
(e) A list of the securities which have been on deposit
VOLUl.1E ~ PAGE'~
as security for the money in the Interest and Sinking
Fund throughout the fiscal year, a list of the securities,
if any, in which the Reserve Fund has been invested,
and a statement of the manner in which money in the
System Fund has been secured in such fiscal year;
(f) The number of properties connected with the system.
Expenses incurred in making the audits above referred
to are to be regarded as maintenance and operating expenses
and paid as such. The City shall furnish to any holder of any
of the certificates at the written request of such holder,
not more than thirty (30) days after the close of each six
months' fiscal period, complete operating and income statements
of the system in reasonable detail covering such six months'
period, and not more than sixty (60) days after the close of
each fiscal year, complete operating statements of the
system in reasonable detail covering such fiscal year,
certified by independent auditors.
SECTION 21: In addition to all the rights and remedies
proviaed by tne laws of the State of Texas, the City covenants
and agrees particularly that in the event the City (a)
defaults in the payments to be made to the Funds herein
established, 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
certificates 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
default 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 cumu-
lative of all other existing remedies and the specification
to such remedies shall not be deemed to be exclusive.
SECTION 22:
follows:
The City hereby further covenants as
(a) That it has the lawful power to pledge the
revenues supporting this issue of certificates and
has lawfully exercised said powers under the
Constitution and laws of the State of Texas,
including said power existing under Articles 1111
et seq., and Article 2368a.1, V.A.T.C.S., that the
certificates shall be ratably secured under said
pledge of income in such manner that one certificate
shall have no preference over any other certificate
of said issue.
(b) That other than for the payment of the
certificates, the rents, revenues, and income 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
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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 machinery,
or other properties or equipment which has become
obsolete or otherwise unsuited to the efficient
operation of the system; also, with the exception
of additional obligations issued in accordance
with the terms and conditions of this ordinance,
it will not encumber the revenues thereof unless
such encumbrance is made junior and subordinate to
all of the provisions of this ordinance.
(d) That no free service of the system shall be
allowed, and should the City or any of its agents
or instrumentalities make use of the services and
facilities of the system, payment of the reasonable
value thereof shall be made by the City out of
funds from sources other than the revenues and
income of the system.
(e) To the extent that it legally may, the City
further covenants and agrees that, so long as any
of the certificates or any interest thereon are
outstanding, no franchise shall be granted for the
installation or operation of any competing water-
works system, that the City will prohibit the
operation of any water system other than that
owned by the City, and the operation of any such
system by anyone other than the City is hereby
prohibited.
SECTION 23: The certificates are special obligations
of the City payable from the pledged revenues, and the
holders thereof shall never have the right to demand payment
thereof out of funds raised or to be raised by taxation.
SECTION 24: Each of the certificates herein authorized
shall be deemea 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: The Mavor shall be and he is hereby
authorized to~ake and hav~ 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 and their registration by
the Comptroller of Public Accounts, and delivery to the
purchasers thereof.
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SECTION 26: That the sale of the certificates to the
United States-of America, Farmers Home Administration, U. S.
Department of Agriculture at the price of par is hereby
confirmed. Delivery of the certificates shall be made to
said purchaser as soon as may be after the adoption of this
ordinance, upon pa~nent therefor in accordance with the
terms of sale.
SECTION 27: That the City hereby covenants that the
proceeds from-rhe 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
VOLUME ::lJT .PAGE,:;;2/
~
period pending such use; and that such proceeds will not be
used directly or indirectly so as to cause all or any part
,I of said certificates to be or become I'arbitrage" obligations
within the meaning of Section l03(d) of the Internal Revenue
i Code of 1954, as amended, or any regulations or rulings
prescribed or made pursuant thereto.
SECTION 28: The fact that it is to the best interest
of the City tnat the City proceed to acquire the said waterworks
system (as hereinabove set out) be effected at the earliest
possible date creates this an emergency measure for the
~ediate preservation of the public peace, health and
safety requiring that this ordinance be passed as an emergency
measure, and this ordinance is accordingly passed as an
emergency measure and shall take effect and be in force and
effect from and after its passage.
PASSED AND APPROVED this
1975.
e,
ATTEST:
j?)'( X~~40 t1?<</.n-u~~
City Secretary, City of C eyville,
Texas
(City Seal)
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.,.....,.
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EXHIBIT "A"
VOLUMZ ffi PAGE >>.f
UNITED STATES OF AMERICA
STATE OF TEXAS
$5.000
NO.
COUNTY OF TARRANT
CITY OF COLLEYVILLE, TEXAS, WATERWORKS REVENUE
CERTIFICATE OF OBLIGATION, SERIES 1975
THE CITY OF COLLEYVILLE, a municipal corporation of the
State of Texas. acknowledges itself indebted to and FOR VALUE
RECEIVED hereby promises to pay to the registered owner
or holder. 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 JANUARY, . with interest thereon
from the date of delivery of this certificate to the pur-
chaser until paid at the rate of FIVE PER CENTUM (5%) per
annum. payable on January I next following its delivery
date, and annually thereafter on January I in each year.
Principal and interest are payable only to the registered
owner or holder as the same appears on the books of the
Registrar (the City Secretary of the City of Co1leyville. Texas,)
for the issue of certificates of which this certificate
is one; principal is payable upon presentation and surrender
of the certificate on its due date aforesaid.
--~---
BOTH PRINCIPAL of and interest on this certificate are
hereby made payable at the Finance Office of the Farmers
Home Administration, St. Louis, Missouri, without exchange
or collection charges to the registered owner, and the City
of Colleyvi1le, Texas, is hereby held and firmly bound to
apply the pledged appropriated net revenues of its Waterworks
System to the prompt payment of principal and interest on
this certificate at maturity and to pay said principal and
interest as they mature.
THIS CERTIFICATE is one of a series of certificates,
aggregating ONE MILLION FOUR HUNDRED THOUSAND DOLLARS ($1,400,000),
numbered consecutively from one (1) through two hundred
eighty (280), each in the denomination of Five Thousand
Dollars ($5,000), issued for the purpose of acquiring
an existing utility system, to wit: a waterworks distri-
buti?n system, .in order that the same may be a part of the
City's water supply and distribution system; in accordance
with the Constitution and laws of the State of Texas, parti-
cularly Article 2368a.l, V.A.T.C.S., and pursuant to an
ordinance passed by the City Council of the City of Colley-
ville, Texas. and duly recorded in the minutes of said City
Council.
AS SPECIFIED in the ordinance hereinabove mentioned,
the City reserves the right to redeem certificates of this
series maturing on January 1, 1987, and subsequent, in whole
or in part (but in inverse numerical order if less than
all), on January 1, 1986, or any interest payment date
thereafter, at the price of par and accrued interest to the
date fixed for redemption, and additionally, during the
period of time any certificates of this series are registered
. : ,'~.:, ' '
VOLrnAE~PAGE J~O
in the name of the initial purchaser, the City reserves the
right to redeem any of such certificates at any time and at
the price of par and accrued interest; PROVIDED, HOWEVER,
that at least thirty (30) days prior to a date any certificates
are to be redeemed, notice of redemption, signed by the City
Secretary (specifying the serial numbers and amount of
certificates to be redeemed) shall have been filed with the
aforesaid paying agent; and if by the date so fixed for
redemption the City shall have made available funds in
amounts sufficient to pay the certificates called for redemp-
tion and accrued interest thereon, any certificate or certifi-
cates not presented for redemption pursuant to such notice
shall cease to bear interest from and after the date so
fixed for redemption.
THE DATE of this certificate in conformity with the
ordinance mentioned is January 1, 1975.
THIS CERTIFICATE and the series of which it is a part
constitute special obligations of the City of Colleyville,
Texas, and are payable solely from and equally secured by a
lien on and pledge of the net revenues of the City's Waterworks
System.
THE CITY expressly reserves the right to issue further
and additional revenue obligations, in all things on a
parity with the certificates of this series, payable solely
from and equally secured by a lien on and pledge of the net
revenues of said System; PROVIDED HOWEVER, that any and all
such additional revenue obligations may be so issued only in
accordance with and subject to the covenants, conditions,
limitations and restrictions relating thereto which are set
out and contained in the ordinance authorizing this series
of certificates, and to which said ordinance reference is
hereby made for full and complete particulars.
THE HOLDER hereof shall never have the right to demand
payment of this obligation out of any funds raised or to be
raised by taxation.
", ,,------.---...-
IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED that
the issuance of this certificate and the series of which it
is one is duly authorized by law; that all acts, conditions
and things required to exist and to be done precedent to and
in the issuance of this certificate to render the same
lawful and valid have been properly done, have happened and
have been performed in regular and due time, form and manner
as required by the Constitution and the laws of the State of
Texas and the ordinance hereinabove mentioned; that this
series of revenue certificates does not exceed any consti-
tutional or statutory limitation; and that provision has
been made for the payment of the principal of and interest
on this certificate and the series of which it is one by
irrevocably pledging the net revenues of the Waterworks
System of the City of Colleyville, Texas.
. IN TESTIMONY WHEREOF, the City Council of the City of
Colleyville, Texas, in accordance with the provisions of
Article 7l7j-l, V.A.T.C.S., has caused the seal of said City
to be impressed or a facsimile thereof to be printed hereon,
and this certificate to be executed with the imprinted
facsimile signatures of the Mayor and City Secretary of said
City as of the 28th day of Januar , 1975
COUNTERSIGNED:
Cimect~y~ ~le
Texas