HomeMy WebLinkAboutOrdinances (O-75-205)-05/06/1975
ORDINANCE 0-75-205
VOLUME
~.
1lJPAGE~
AN ORDINANCE by the City Council of the City of
Colleyville, Texas, authorizing the issuance of
$55,000 "CITY OF COLLEYVILLE, TEXAS, COMBINATION
TAX AND REVE~mE CERTIFICATES OF OFLI~ATION, SE~IES
1975," dated May], 1975, for the Durnose o.f
paying a portion of a contractual obligation of
the City to be incurred ~or the construction o~
public work, to wit: the construction of collection
lines for the City's Sanitary Sewer SYstem;
providing for the payment of said certificates of
obligation by (i) the levy of a tax, and (ii) the
appropriation and pledge of net revenues of the
City's Sanitary Sewer System (sublect to the
pledge made for bonds payable from such revenues);
providing the terms and conditions of such certi-
ficates; enacting nrovisions incident and relating
to the subject and purpose of this ordinance; and
declaring an emergency
PHEREAS, the City of Colleyville, Texas, has hereto~ore
advertised for bids on contract to be let in regard to a
capital improvement pro.i ect involving the construction of
collection lines for the City's Sanitary Sewer System; and
v-ffiEREAS, bids for the aforesaid contract "Tere received,
publicly opened and read on the -,!Qt!?- day of __!pri1__,
1975, and then referred to the CitvTs consulting engineer
for tabulation and checking; and
WHEREAS, the Council
and best bid received for
A. W. Boren Canst. Co.
and
has been advised that the lowe~t
said contract ~as that o~ the
~or the amount of $69J,046.84 _>>
FBEREAS, in connection "7ith the advertisinp: ~or 1:->j ds
for said contracts, this City Council also caused notice of
its intention to issue certificates of ohligation :in an
amount not to exceed S55,OOO for the purpose of naying a
portion of the afore~entioned contractual o1:->ligations to he
published in~Worth Star Tffegra.tn" a nevTsnaper of ,~eneral
circulation in tne City of Co eyville, Texas, on 11 April
, 1975, and 18~i1 , 1975; and tne execution
of such notice by tne City ,-"ecretaryand the publication
thereof is hereby ratified and confirmed in all resnects;
and '
vTHEREAS, it is hereby found and determined that no
petition of any kind protestin~ the issuance of such certi~icates
of obligation has heen filed ,,7ith the City Secretary, any
member of the Councilor any other o~ficer of the rity: and
v!HEREAS, this Council is not-7 authorized and emflopered
to proceed with the issuance of said certificates of ohlfp,ation
and to sell the same for cash; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL (r~ THE CITY ()l<'
COLLEYVILLE, TEXAS:
SECTION 1: That for the purpose of paying a portion n.f
a contractual-obligation of the City to he incurred for tre
construction of public v70rk, to "dt: the construction of
collection lines for the Citv's fanitarv Svstem; there shall
be and there is hereby ordered to be issued, under and bv
virtue of the Consti tution and lav's of the ~tate of 'T'exas,
particularly Article 236~a.l. u.~.~.C.S., a series of certj~jcates
of obligation of the City of Collevville, Texas to re vno~,m
as "CITY OF COLLEVVILLE.. TEXAS, COMP,U1ATI0N TAl{' AND PFVFNUF
CERTIFICATES OF OBLIGATInN, SF-PIES ~C)75," jn the princinal
amount of FIFTY_FIVE THOUSAND DOLLAPS ($55,000).
VOLUES --11f-r AGE~
S~CTION 2: That said certi~icates shall be dated
May 1, 1975, shall be numhered consecutively from one (1)
through eleven (11), shall each be in the denomination of
Five Thousand Dollars ($5,000), and shall become due and
payable serially on January 1 in each of the years in accordance
with the following schedule:
CERTIFICATE NUMBERS
(All inclusive)
YEAR
AMflUNT
1
2
3
4
5
6
7
8
9
10
11
1977
1978
1979
1980
19~n
1982
1983
1984
1985
1986
1987
$5,000
5,000
5,000
5,000
5,000
5,OnO
5,000
5,000
5,OOn
5,000
5,000
PROVIDED, ROvlliVER, the City reserves the right to redeem the
certificate of this series maturing in the vear lQ87, on
January 1, 1986, at the price of par and accrued interest to
the date of redemption; and, in addition, the c'1ty reserves
the right to redeem any certificate of this series registered
in the name of Farmers POI!le Administration, United ~tates
Department of Agriculture, at any time and at the nrice at:
par and accrued interest; PROVIDED, ~U~THEF, that at 'east
thirty (30) days prior to a date any certificates are to be
redeemed, notice of redemption signed hy the City Secretary
(specifying the serial numbers and amount of certificates to
be redeemed) shall have been filed \-7ith the paying aq;ent
named in each of said certificates; and if by the nate so
fixed for redemption the City shall have made availa1-.le
funds in amounts sufficient to pay the certificates called
for redemption and accrued interest thereon, any certit=icate
or certificates not presented for redemption nursuant to
said notice shall cease to bear interest t=rom and after the
date so fixed for redemption.
SECTION 3: That said certificates shall hear
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 deliverv date
and annually thereafter on January 1. of each year. An
endorsement by the City Secretary indicating the date ot=
delivery shall be placed on each certificate in the registration
ledger provided in-Section 7 hereof.
SECTION 4: That said certificates shall ne navarle
as to-prInCIpal and interest to the registered holder thereo~
in lawful money of the United States of America, without
exchange or collection charges, at the naying agent. The
principal of said certificates shall he naid as they mature
upon presentation and surrender thereof; and, inter~st shall
be paid to the reRistered holder or holders of such certificates
without their presentation.
~ECTJO~ ~: The seal of said City may re imoressed
on eacn-or-sald certificates, or, in the alternative, a
facsimile of such seal may be printed on the said certi~i-
cates. The certificates may be executed by the imprinted
facsimile signatures of the Mayor and City Secretarv ot= tre
VOLUME
4 -PAGE~
City and execution in such manner shall have the same effect
as if such certificates had been signed ry the Mayor and
City Secretary in person by their manual signatures. Inasmuch
as such certificates are reauired to be registered by the
Comptroller of Public Accounts for the State of Texas, only
his signature (or that of a deputy designated in ~~iting to
act for the Comptroller) shall be reauired to he manually
subscribed to such certificates in connection with his
registration certificate to appear thereon, as hereinatter
provided, all in accordance with the provisions of Article
7l7j-l, V.A.T.C.S.
SECTION 6: The certificates shall be in substantially
the following-form:
NO.
UNITED STATES OF AMERICA
$5,000
STATE OF TEXAS
CITY OF COLLEYVILLE, TEXAS CO~BINATION
TAX AND REVENUE CERTIFICATE
OF OBLIGATION
SERIES 1975
THIS IS TO CERTIFY that, FOP. VALUE F.FCEIVFD, TFE CITY
of COLLEYVILLE, a municipal corporation of the State of
Texas, is justly indebted to and hereby obligates itself to
pay to the registered o\'mer or hoJ.der, on the FIRST DAY 0'"
JANUAFY, 19 ,the sum of
FIVE THOUSAND DOLLARS
($5,000), in lalr/ful money of the United States of America,
with interest thereon from the date of delivery o.j: this
certificate to the purchaser until naid at the rate of wIV~
PER CENTUM (5io) per annum, pavahle on January 1 nex t follot-dnp:
its delivery date, and annually thereaFter on January 1 in
each year. Principal and interest are nayable only to the
registered owner or holder as the same apnears on the books of
the Registrar (the City Secretary of the City of Collevville,
Texas,) for the issue of cert i fica t es of ~.~hic]-l this cert if1-
cate is one; principal is oayable upon nresentation and surrender
of the certificate on its due date aforesaid.
-----.----.
BOTH PRINCIPAL of and interest on this certificate are
hereby made payable at the Farmers Home Administration,
United States Deoartment of Agriculture. St Louis, Missouri,
without exchange or collection charges to the registered
owner; and for the prompt payment of this certiFicate and
the interest thereon as the ~ame ~ecomes due, the Citv of
Colleyville, Texas, has levied a tax UDon all taxable nropertv
within said City and pledged the net revenues of the Citv's
sanitary sewer system; 1JROVTDED, HOWFVEP., such nledge of= net
revenues is subject and subordinate to the oledge made for
the security and nayment of prior lien bonds (as de.j:ined in
the ordinance authorizing the series of certificates of
which this certificate is a Dart).
THIS CERTI~ICATE is one of a series of certiFicates
numbered consecutively from one (1) throug~ eleven (11),
each in denomination of 1<'ive TholJsand Dollars <$5,000),
aggregating the principal sum ofH'P'TY_FTVF TH0USJt..ND
DOLLARS ($55,000), issued for the purpose of caving a nortion
of a contractual obligation of the City to ~e incurrerl Foy
the construction of public work, to \.7it: the construction
VOLm.~L ~PAGE ;;I.t
of collection lines ~or the City's Sanitarv SevTer Svstem,
under and by virtue of the Constitution and laws of the State
of Texas, including Article 2368a.1, V.A.T.C.S. and pursuant
to an ordinance passed bv the City Council o~ the City of
Colleyville, Texas, and ~u1y reco~ded in the Minutes of said
City.
AS SPECIFIED in the ordinapce hereinarove mentioned,
the City reserves the right to redeem the certi~icate of"
this series maturing in the year 1987, on January 1, lQ86,
at the price of par and accrued interest to the cate of
redemption; and, in addition, the City reserves the rigrt to
redeem any certificate of this series re~istererl jp the name
of Farmers Home Administration, United Ptates Denartment of
Agriculture, at any time and at the price o~ nar and accrued
interest; PROVIDED, H0HEVFP.., that at least thirty (0) days
prior to a date any certificates are to he redeeMed, notice
of redemption signed by the City Secretary (soecifyinr, tne
serial numbers and amount of certificates to be redeemed)
shall have been filed with the payinr, 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 su~f'icient
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 hear
interest from and after the date so fixed for redemptiop.
THE DATE of this certificate in conformity "dth the
ordinance mentioned is May 1, 1975.
IT IS HEREBY CERTIFIED, RECITFD AN~ PEP~FS~NTFn 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 to be done precedent to and in the issuance of
this certificate and the series of ~hich it is a nart, have
been properly done, have happened and nave been nerformed in
regular and due time, form and manner as required hy ~aw;
that proper provisions have been made for the payment of
principal of and interest on this certificate and the series
of which it is a part, by the levy of a direct and continuin~
annual ad valorem tax against all taxable orooertv ~,7ithin
said City and by a pledge of the net revenues of tbe City's
sanitary sewer system; such pledge of net revenues, however,
being subject and subordinate to the pledge securing the
payment of prior lien bonds as hereinahove recited; and that
the total indebtedness of the City o~ Collevville, Texas,
inc luding thi s cert if ica te and the series of \-7hich it is a
part, does not exceed any constitutional or statutorv limitation.
IN TESTIMONY VfHEREOF, the City Council of the City of
Colleyville, Texas, in accordance ~vith the provisions of
Article 717j-1, 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 ~7ith the facsiMile
signatures of the Mavor and City Secretary of said City, the
date of ttlis certificate, in conformity "7ith the ordinance
hereinabove mentioned, being the FIRST DAV OF MAY. lq75.
MQ~ ~~~xas
COUNTERSIGNFD; r.~-
,a~~.- '~f. n~I..'r--.-_..
C1ty ,.ecretC!ry. Clty ~~] evvire.
Texas
votUlflE_ 1JC"PAGE~&2
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
1
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 ot 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 taxes and revenues pledged to its payment by and in
the. ordinance authorizing same, and said certificate has this
day been registere~ by me.
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas,
Comptroller of Public Accounts
of the State of Texas
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 Regi~trar. 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
sa tis fac tory to the Regi s trar . IJpon 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 pr~nted on the back of
each certificate shall be substantialty in the following
form:
REGISTRATION LEDGER
- .
Date of
Registration
!i~istered_Owner
Registrar's
Authorized Signature
United States of A~erica,
Farmers Home Adminlstration,
United States Department of
Agriculture
...<1/'
VOLUME 1/J-PAGE;2/,3
SECTION 8: For all purposes of this ordinance and ~or
clarity with respect to the issuance of the certificates
herein authorized, and the levy of taxes and appropriation
of net revenue therefor, the following definitions are
provided:
(a) The term "certificates" shall mean the combination
tax and revenue certificates of oblig;ation authorized by
this ordinance and additional comhination tax and revenue
obligations, if any, issued on a parity tberewith.
(b) The term "Certificate li'und" shall mean the special
fund created under the provisions of Section 9 of this
ordinance.
(c) The term "fiscal vear" srall mean the twelve-month
period for the system ending on Septanher 30 of" eacn vear.
(d) The term "net revenues" shall mean tr.e gross
revenues of the system less the expense of operation and
maintenance as said exrenses are defined hy statute (Article
1113, V.A.T.C.S.).
(e) The term "paying agent" shall mean Farmers Pome
Administration, United States Department of Agriculture,
Finance Office, St. Louis, Missouri.
(f) The term "prior lien bonds" shall mean the out-
standing and unpaid bonds payahle from and secured by a first
lien on and pledge of the net revenues of the City's water-
works and sanitary sewer system (as distinguisned from the
certificates authorized by this ordinance which are payable
from and secured by a pledr,e of the net revenues of the City's
sanitary sewer system) being: .
(1) The outstandine and unpaid previously authorized
bond s of the City, knovm a s the "CITY 01<" COLLFYVILLE,
TEXAS, \<7ATERt-.10RKS AND SFFFR SYSTE".t PEVEt.TUJ'. BONDS, SF'Pl Ff
1975," dated January 1, 1975, in the original princinal
sum of $2,000,000.
(2) Bonds herea~ter issued on a oaritv with said
previously authorized 'boDds as "aocHtioDHl hon(l.s" UDder
the terms and provisions of the ordinance authorizing
the issuance of such hands.
(3) Any refunding honds hereafter issued to refund
all or part of the aforesaid previously A.uthorized ropos
or additional bonds, if payable from and secured
by a first lien on and pledge of the net revenues of"
the City water and sewer system.
SECTION 9: That for the purpose of paying the interest
on anoto-provide a sinking fund for the oayment, redemntion,
and retirement of the certificates, there is hereby created
and established a special fund to he designated "SPECIAL
CITY OF COLLEYVILLE, TEXAS, COMBINATION TAX AND RFVFNUE
CERTIFICATE OF OBLIr;ATI0N FUND," and all monies clenosited
therein shall be used for no other purpose. This fund shall
be deposited with FIRST NATIONAL RM1K, Colleyville, Texas,
and said custodian of the wund is herehy authorized and
directed to make withdrawals from said round in such amounts
n. 1Jf ?AGEJ.t"-
VOLULEE_-
required to pay the principal of and interest on the certificates
as the same become due and mature.
SECTION 10: That to provide for the pavrnent of the
debt service requirements on said certificates, reing (5)
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 he and
there is hereby levied for the current year and each succeedinr,
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 reauirements,
full allowance being made for delinquencies and costs of
collection; said tax shall be assessed and collected each
year and applied to the payment of the debt service re(luirements,
and the same shall not be diverted to any other nurpose.
The taxes so levied and collected shall be paid into the
Certificate Fund. This governing ~ody hereby declares its
purpose and intent to provide and levy a tax legally and
fully sufficient to pay the said debt service reauirements,
it having been determined that the existing and availahle
taxing authority of the City for such purpose is ade~uate 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
shall be determined and accomplished 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 in the next succeeding fiscal year of the Citv,
(ii) the amount on deposi t in tr-e Certificate ti'und, 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) and (iii.) tDe amount of net revenues
of the system estimated and budgeted to be available for the
payment of such debt service requirements on the certificates
during the next succeeding fiscal year of the City Chased
upon the amount of net revenues of the system availahle from
the preceding fiscal year of the system)'.
(b) The amount reouired to be provided in the succeedinp,
fiscal year of the City from ad valorem taxes shall De the
amount, if any, the debt service requirements to he paid on
the certificates in the next succeeding fiscal year of the
City exceed the sum of (i) the amount shotlm to t-e on denosit
in the Certificate Fund at the time the annual budget is
prepared, and (ii) the net revenues of the system shown to
be budgeted and available for payment of said debt service
requirements.
(c) Following the final approval of the annual hudget
of the City, the governing body of this City shall~ by
ordinance. levy an ad valorem tax at a rate sufficient to
produce taxes in the amount determined in paragraph eb)
above, to be utilized for purposes of paying the princi~al
of and interest on the certificates in the next succeeding
fiscal year of the City. .
SECTION 11: The City herehv covenants and agrees tbat
subject-onTy to the pledge of the net revenues of tne system
to the payment of principal. interest and reserve fund
requirements of the prior lien bonds and tne means and
methods of accumulating and maintaining all funds required
VOLUME :If[ PAGE :2&5"
therefor under the provlSlons of the ordinances and proceed-
ings pertaining to the authorization of the prior lien
bonds, all the net revenues of the system, ,-rith the exception
of those in excess of the amounts required to ~e deposited
to the Certificate Fund as hereafter provided, are here~v
irrevocably pledged to the payment of the principal o.f and
interest on the certificates as the same becomes due.
SECTION 12: That as provided in the ordinances author-
izing the issuance of the prior lien bonds, the City re-
affirms its prior covenant that as received all revenues and
income of every nature derived from the operation of the
City's system shall be first deposited in an account of t~e
City designated "City of Colleyville \-!ater~lorks and f:eHer
System Fund", hereinafter called "SYstem Fund," and shall ~e
pledged and appropriated as follows:
FIRST: To the payment of all necessary and reasonahle
expenses of operating and maintaining the City's waterv'orys
and sanitary sewer system.
SECOND: To the special funds established for the pav-
ment and security of the prior lien tonds,
including the correctivR of any de.ficipncips
in the funds established for such purposes.
After satisfying all payments reauired under the terms and
provisions of the ordinance authorizing the prior lien
bonds, all monies and revenues remaining in the ~ystem ~und
which are attributable to City's system shall ~e and are
hereby pledged and the same shall be appropriated for the
following purposes and in the order of precedence sho~m, as
follo~7s :
FIRST: To the "SPECIAL CITY OF COLLEYUTLLE, TFX,A~,
COMBINATION TAX AND REVENUE CERTIFICATES OF OBI.Ir.ATI0T'1
FUND," to the extent as provided in Section 13, and
SECOND: To any other proper city purposes no~ or
hereafter permitted by latl7.
SECTION 13: That from the pled~ed net revenues o.f
the systeIilIn-fhe System Fund. the City shall cause to h~
deposited in the Certificate Fund the followinp, amounts on
the following dates, to wit:
(a) Upon delivery of the certificates, the City
Treasurer shall calculate the amount of princina1 and
interest (either or both) scheduled to become due on
the 1st day of January next fo1lov7ing. f:uch amount
shall be deposited in said Fund on or before the 15th
day of each'month thereafter. If the certificates are
delivered between December 15 and December 31, the
amount required on the January 1 as the debt service
reauirement of the certificates shall forthwith be
deposited in said ~und.
(b) Beginning on January 15 follor.rin?, the deliverv of
the certificates and on or before the 15th 0ay 0~ each
month thereafter, an amount equal to not less than one-
twelfth (1/12) of the next annual principal and interest
payment to become due on the certificates on the next
vOLmr131PAGE ~~(p
interest payment date or all pledged revenues OF the
system (except $100), remaining in the System ~und on
such dates, whichever amount is the lesser,
The monthly deposits to be made to the Certificate
Fund, as hereinabove provided, shall ~e mane until such time
as such Fund contains an amount eoual to pay the principal
of and interest on the certificates to final maturity.
SECTION 14: All Funds for which this ordinance ~akes
provision (except any portion thereof as ~ay 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 such Funds shall he used for the purnoses
permitted by this ordinance.
SECTION 15: The City covenants and agrees with the
holder or holaers of the certificates that it 1;'7ill maintain
and operate the system with all possible efficiency ,,'hile
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 services by the system
and the segregation and application of the revenues of the
system as required by the provisions of the ordinances
authorizing the issuance of the prior lien bonds and this
ordinance; and that no free services shall be rendered by
the system to any customers including the City and its
various departments, and that services used by the City and
its various departments shall be paid for at the same rates
charged other customers,
SECTION 16: The City further covenants and a~rees tn
keep proper-books of records and accounts in which comnlete
and correct entries shall be made of all transactions relating
to the system. The City shall furnish to anv holder of any
of the certificates at the written reauest of such holder,
not more than thirty (30) days after the close of each
fiscal year, complete operating and income statements of the
system in reasonable detail, certified by independent auditors.
SECTION 17: Anv holder or holders of twenty-five per
centuiil-'(2"5%Y of the principal amount of the outstanding
certificates shall have the right at all reasonable times to
inspect the system and all records, accounts and data OF the
City relating thereto.
SECTION 18: In addition to all the rights and remedies
proviaeaoy-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 Certificate Fund,
or (b) defaults in the observance or performance of
any other of the covenants, conditions or ob1i~ations set
forth in this ordinance, the holder or holders of any of the
certificates shall be entitled to a "1Tit o~ mandamus issuecl
by a court of proper jurisdiction compelling and requiring
the governing body of the City and other officers o~ the
City to observe and perform any covenant, condition, or
obligation prescribed in this ordinance.
No delay or omission to exercise any right or noV,rer
accruing upon any default shall impair any such right or
power, or shall be construed to be a waiver of any such
V01:.TI!1E
1[( PAGE~
default or acquiescence therein, and every such ri?,ht and
power may be exercised from time to time and as often as may
be deemed expedient.
The specific remedies herein nrovided shall be cumu-
lative of all other existing remedies and the specification
to such remedies shall not be deemed to be exclusive.
SECTION 19:
follows:
The City hereby further covenants as
(a) That it has the lawful po~..,er to pledge the
revenues supporting this issue of certificates and
has lawfully exercised said ~owers under the
Constitution and laws of the State of Texas,
including said power existing under Articles 1111
et seg., and Article 2368a.l, V.A.T.C.S., tbat the
certificates shall be ratably secured under sain
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 prior
lien bonds and the certif.icates, tbe rents, revenues,
and income of the system nave not in any manner
been pledged to the payment of any debt or obliga-
tion of the City or of the system.
(c) That, as long as any certificates or any
interest thereon remain outstanding, the City ~\lill
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 eauin.reent which
has become obsolete or otherwise unsuited to the
efficient operation of the system; also, with the
exception of additional prior lien hands issued in
accordance with the terms and conditions of the
ordinances authorizing the previously issued prior
lien bonds and additional certificates to be
secured by both taxes and net revenues of the
system hereby expressly permitted to be issued
(which may be issued on a parity, insofar as net
revenues are concerned, with this series of certificates),
it will not encumber the revenues of tbe system
thereof unless such encumbrance is made .iunior and
subordinate to all of the provisions of the certificates
herein authorized.
Cd) To the extent that it legally can, the Citv
further covenants and agrees that, as lo"~ as any
of the certificates or any interest thereon are .
outstanding, no franchise shall be granted for the
installation or operation of any competinp; system,
that the City will prohibit the operation of any
system other than that or,.med by the City and the
operation of any such system by anyone otber than
the City is herehy prohibited.
SECTION 20: It is the intention of this ?,overning
body anaaccorOingly here recognized ann stipulated tnat
those provisions, conditions and other recitals contained in
the ordinances authorizing the prior lien ~onds whicn ~ear
upon the management of the af~airs of the system and methods
of providing and admif)istering its net revenues shall he
~
VOLUME ~ PAGE~
applicable as appropriate to the certificates herein author-
ized but in all respects subject to the priorities of t~e
prior lien bonds.
SECTION 21: Each of the certiFicates herein author-
ized shall bedeemed and construed to be a "securitv," and
as such a negotiable instrument, within the meaning of
Article 8 of the Uniform Commercial Code.
SECTION 22: That the proceeds to be realized from
the sale of tne certificates herein authorized shall be
expended and the same are hereby budgeted and appropriated
for the purpose of payment of a portion of a contractual
obligation to be entered into by and between the City of
Colleyville, Texas, and jn the
amount of $
SECTION 23: That the sale of the certificates to t~e
United States-of America, Farmers Home Administration, U. ~.
Department of Agriculture at the price of par and accrued
interest to date of delivery is hereby confirmed. Delivery
of the certificates shall be made to said purchaser as soon
as may be after the adoption of th1s ordinance, upon pavrnent
therefor in accordance with the terms of sale.
SECTION 24: 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 ~eneral, registration
by the Comptroller of Public Accounts, and delivery to the
purchaser thereof.
SECTION 25: That the City hereby covenants that the
proceeds from-rhe sale of said certificates will he used as
soon as practicable for the purpose for which said certifi-
cates are issued; that such proceeds ~.7ill not be invested in
any securities or obligations except for the tempcrary
period pending such use; and that such proceeds will not he
used directly or indirectly so as to cause all or any Dart
of said certificates to be or become "arbitrage" obligations
within the meaning of Section 103(d) of the Internal Pevenue
Code of 1954, as amended, or any regulations or rulings
prescribed or made pursuant thereto.
SECTION 26: The fact that it is to the rest interest
of the City tflat the City proceed to construct the collection
lines for the sanitary sewer system (as hereinabove set out)
be effected at the eailiest possible date creates this an
emergency measure for the immediate 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 emer~ency measure and shall ta~e effect
and be in force and effect from and after its passage.
PASSED AND APPROVED this
the 6th day of May, 1975.
Ma~~ofZ~as
ATTEST:
pc -~~&1.~1..--.-"
vlty Secretary, Clty OL CO ~IeyvIV1e,
T ex as
(City Seal)
jJJ
VOLUME ?....r:"P, ;;&1
MINUTES PERTAINING TO PASSAGE AND ADOPTION
OF AN ORDINANCE AUTHORIZING THE ISSUANCE OF
$55,000 COMBINATION TAX AND REVENUE CERTIFICATES
OF OBLIGATION, SERIES 1975, DATED MAY 1, 1975
THE STATE OF TEXAS X
COUNTY OF TARRANT X
CITY OF COLLEYVILLE 1
ON THIS, the 6th day of May, 1975, the City Council of
the City of Colleyville, Texas, convened in regular session
at the regular meeting place thereof in the City Hall, the
meeting being open to the public and notice of said meeting
having been given as prescribed by Article 6252-17, Section
3A., V.A.T.C.S., the following members being present and in
attendance, to wit:
JOHN A. ANDREWS
MAYOR
DAVID HANKEN
PIERS CHANCE
LARRY KAINER
VIRGIL THOMPSON
REX MOORE
)
)
)
)
)
ALDERMEN
and with the following absent: NONE
constituting a quorum; and among-oEfier proc"eedingsnaa- were -'---
the following:
The Presiding Officer introduced an ordinance with
the following caption: 0 - 7~- ;2VS-
"AN ORDINANCE by the City Council of the City of
Colleyville, Texas, authorizing the issuance of
$55,000 'CITY OF COLLEYVILLE, TEXAS, COMBINATION
TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES
1975,' dated May 1, 1975, for the purpose of paying
a portion of a contractual obligation of the City
to be incurred for the construction of public work.
to wit: the construction of collection lines for
the City's Sanitary Sewer System; providing for
the payment of said certificates of obligation by
(i) the levy of a tax, and (ii) the appropriation
and pledge of net revenues of the City's Sanitary
Sewer System (subject to the pledge made for bonds
payable from such revenues); providing the terms
and conditions of such certificates; enacting
provisions incident and relating to the subject
and purpose of this ordinance; and declaring an
emergency."
The ordinance was read in full. Thereupon, Alderman
David Hanken made a motion that any rule requiring
ordinance to be reao more than one time or at more than one
meeting be suspended. The motion was seconded by Alderman
Piers Chance and carried by the following vote:
AYES:
Aldermen Hanken, Chance, Kainer, Thompson
and Moore.
NOES:
None.
VOLUME~PAGE ;2?(J
Aldennan
be passed finally.
made a motion that the ordinance
The motIon was seconded by Aldennan
and carried by the following vote:
AYES:
Aldennen Hanken, Chance, Kainer, Thompson
and Moore.
NOES:
None.
The Presiding Officer announced that the ordinance had
been finally passed and adopted.
MINUTES APPROVED, this the 6th day of May, 1975.
{}~ycf:~e~__n ..... ..
~r;exas
ATTEST:
-C~~~;;Ille.
Texas
(City Seal)