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Ordinance No. 462V 4+rr • • i CRDE\TkNCE NO 462 • AN ORDINANCE AUTHORIZING THE ISSUANCE OF $1,000,000 CITY OF BAYTOWN STREET AND DRAINAGE IMPROVEMENT BONDS; PRESCRIBING THE TERMS AND CONDITIONS THEREOF; LEVYING TAXES TO PAY THE PRINCIPAL THEREOF AND IN- TEREST THEREON; AWARDING THE SALE THEREOF; CONTAIN- ING OTHER PROVISIONS RELATING TO THE SUBJECT; AND PROVIDING THAT THIS ORDINANCE SHALL TAKE EFFECT FROM AND AFTER ITS ADOPTION THE STATE OF TEXAS § COUNTY OF HARRIS § The City Council of the City of Baytown, Texas, convened in special session at the City Hall within said City on the 6th day of February, 1958, with the following members present, to -wit: • R. H. Pruett W. C. Swain James Garrison Al Clayton Paul Mears Walter Lane Wurd Lacy Lusk Edna Oliver and the following members absent, to -wit: Mayor Councilman Councilman Councilman Councilman Councilman Councilman City Clerk when the following business was transacted: The Mayor introduced an ordinance which was read in full. Coun- cilman L v 5 A made a motion that the ordinance be adopted as read. The motion for adoption was seconded by Councilman Al g 2 al • The motion carrying with it the adoption of the ordinance prevailed by the following vote: AYES: Councilmen Swain, Garrison, Clayton, Mears, Ward, Lusk, and Mayor Pruett. NOES: None. The ordinance thus adopted follows: I� AN ORDINANCE AUTHORIZING THE ISSUANCE OF $1,0001000 CITY OF BAYTOWN STREET AND DRAINAGE IMPROVEMENT BONDS; PRESCRIBING THE TERMS AND CONDITIONS THEREOF; LEVYING TAXES TO PAY THE PRINCIPAL THEREOF AND IN- TEREST THEREON; AWARDING THE SALE THEREOF; CONTAIN- ING OTHER PROVISIONS RELATING TO THE SUBJECT; AND PROVIDING THAT THIS ORDINANCE SHALL TAKE EFFECT FROM' AND AFTER ITS ADOPTION WHEREAS, pursuant to an ordinance adopted by the City Council of the City of Baytown, Texas, on the 10th day of October, and to an election held within said City on the 2nd day of November, 1957, the following tax bonds of said City have been authorized: $1,396,000 bonds for the purpose of constructing permanent street improvements in and for said • City, and $300,000 bonds for the purpose of constructing permanent drainage improvements in and for said City; E.L:1 WHEREAS, the City Council has determined to issue at this time (a) $700,000 bonds out of the voted $1,396,000 street improvement bonds, and (b) all the voted $300,000 drainage improvement bonds, and to combine the bonds to be issued to this time into one issue of $1,000,000 bonds; and WHEREAS, the City Council has caused notice of sale of such • $1,000,000 bonds to be published in The Bond Buyer (a publication carrying municipal bond notices and devoted primarily to financial news) and in The Baytown Sun (the official newspaper of said City), said notice having been published more than ten days prior to the date set for the sale of said bonds; and WHEREAS, bids have been received pursuant to said notice, and the City Council wishes to authorize the issuance of said bonds and award the sale thereof on the basis of the best bid received; There- fore • BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN: Section 1: RATIFICATION OF ORDINANCE OF OCTOBER 10, 1957: That the ordinance -2- I• C� K] I• 0 • heretofore adopted by the City Council of the City of Baytown, Texas, on the 10th day of October, 1957, authorizing the issuance of the bonds described in the preamble hereto and calling an election there- for, is hereby ratified and confirmed. Section 2: NAME1 AMOUNT, PURPOSE, AND AUTHORIZATION OF BONDS: That the tax bonds of the City of Baytown, Texas, be issued in the principal sum of $1,000,000, to be known and designated as "CITY OF BAYTOWN STREET AND DRAINAGE IMPROVEMENT BONDS, SERIES 1958 ", for the purpose of constructing permanent street improvements and permanent drainage improvements in and for said City; under and in strict conformity with the Constitution and laws of the State of Texas, particularly Chapters 1 and 7 of Title 22, Revised Civil Statutes of Texas, 1925, as amended, and the Home -Rule Charter of said City, and pursuant to an election held within said City on the 2nd day of November, 1957, at which election more than a majority of the duly qualified resident electors of said City who owned taxable property within said City and who had duly rendered the same for taxation, voting at said election, voted in favor of the issuance of said bonds (the bonds hereby authorized being a combination of the following bonds voted at said election: $700,000 bonds out of a total of $1,396,000 bonds voted for the purpose of constructing permanent street improve- ments in and for said City, and all $300,000 bonds voted for the pur- pose of constructing permanent drainage improvements in and for said City) . Section 3: DATE, NUMBERS, DENOMINATION, AMOUNT, AND MATURITIES: That said bonds shall be dated February 15, 1958, shall be numbered consecu- tively from 1 to 1,000, both inclusive, shall be in the denomination of $1,000 each, AGGREGATING $1,000,000, and shall become due and payable serially in their numerical order, without option of prior -3- redemption, on the 15th day of February in each of the years 1960 ito 1974, both inclusive, in the respective amounts shown in the fol- lowing schedule, to -wit: Bonds Nos. Maturity Amount 1 - 30 1960 $ 30,000 31 - 61 1961 31,000 62 - 94 1962 33,000 95 - 128 1963 34,000 129 - 164 1964 36,000 165 - 201 1965 37,000 202 - 24o 1966 39,000 241 - 281 1967 41,000 282 - 326 1968 45,000 327 - 366 1969 40,000 367 - 448 1970 82,000 449 - 575 1971 127,000 • 576 - 709 1972 134,000 710 - 850 1973 141,000 851 - 1000 1974 150,000 Section 4: 4.01 - INTEREST RATES: That said bonds shall bear interest at the following rates per annum, to -wit: Bonds Nos. 1 to both inclusive,, Bonds Nos. to both inclusive,_,6, i Bonds Nos. to both inclusive, f, and Bonds Nos, to=1=5=9r ;—bath #nelteve�;, • interest payable August 15, 1958, and semi - annually thereafter on February 15th and August 15th of each year until the principal sum is paid. 4.02 - BANK OF PAYMENT: That both principal of and interest on said bonds shall be payable, without exchange or collection charges to the owners or holders of the bonds and interest coupons, in law- ful money of the United States of America, at the Citizens National Bank & Trust Co., Baytown, Texas. The principal of said bonds shall be payable only upon presentation and surrender of said bonds as they respectively become due, and interest falling due on and • prior to the respective maturity dates of the bonds shall be payable only upon presentation and surrender of the interest coupons attached -4- E to said bonds as such coupons severally become due. • Section 5: EXECUTION OF BONDS AND INTEREST COUPONS: That, in accordance with the provisions of Article 717j, Vernon's Texas Civil Statutes, each of said bonds shall be signed by the Mayor and countersigned by tte City Clerk, by their facsimile signatures; and the corporate seal of said City shall be impressed upon each of said bonds. The inter- est coupons attached to said bonds shall also be executed by the facsimile signatures of said Mayor and City Clerk. Said facsimile signatures, as above provided, may be engraved, • lithographed, or printed, and shall have the same effect as if said bonds and coupons had been signed manually and in person by each of said officers. The registration certificate of the Comptroller of Public Accounts of the State of Texas, as set forth hereafter in Section 8 of this ordinance, shall be manually subscribed. FORM OF BONDS: as follows: Section 6: That the form of said bonds shall be substantially is No. $1,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF HARRIS CITY OF BAYTOWN STREET AND DRAINAGE IMPROVEMENT BOND SERIES 1958 THE CITY OF BAYTOWN, in the County of Harris, in the State of Texas, FOR VALUE RECEIVED,hereby acknowledges itself indebted to and PROMISES TO PAY TO BEARER ON THE 15TH DAY OF FEBRUARY, 19 , the sum of ,ONE THOUSAND DOLLARS • ($1,000), with interest thereon from the date hereof at the rate of * % per annum, interest payable August 15, 1958, and semi - annually -5- thereafter on February 15th and August 15th of each year until the • principal sum hereof shall have been paid. Both principal of and interest on this bond are payable, without exchange or collection charges to the owner or holder,in lawful money of the United States of America, at the Citizens National Bank & Trust Co., Baytown, Texas. The principal hereof shall be payable only upon presentation and surrender of this bond, and interest falling due on and prior to the maturity of this bond shall be payable only upon presentation of the interest coupons hereto attached as such coupons severally become due. o THE DATE OF THIS BOND, in conformity with the ordinance herein- after mentioned, IS FEBRUARY 15, 1958. THIS BOND IS ONE OF A SERIES OF 1,000 BONDS of like date and tenor, except as to number, interest rate, and maturity, being num- bered consecutively from 1 to 1,000, both inclusive, in the denomi- nation of $1,000 each, AGGREGATING $1,000,000, and is issued for the purpose of constructing permanent street improvements and permanent drainage improvements in and for said City, under and in strict conformity with the Constitution and laws of the State of Texas, 0 particularly Chapters 1 and 7 of Title 22, Revised Civil Statutes of Texas, 1925, as amended, and the Home -Rule Charter of said City, pursuant to a vote of the duly qualified resident electors of said City who owned taxable property in said City and who had duly ren- dered the same for taxation, at an election held within said City on the 2nd day of November, 1957, and pursuant to an ordinance duly adopted by the City Council of said City, entitled "AN ORDINANCE AUTHORIZING THE ISSUANCE OF $1,0001000 CITY OF BAYTOWN STREET AND DRAINAGE IMPROVEMENT BONDS; PRESCRIBING THE TERMS AND CONDITIONS O THEREOF; LEVYING TAXES TO PAY THE PRINCIPAL THEREOF AND INTEREST THEREON; AWARDING THE SALE THEREOF; CONTAINING OTHER PROVISIONS RE- LATING TO THE SUBJECT; AND PROVIDING THAT THIS ORDINANCE SHALL TAKE EFFECT FROM AND AFTER ITS ADOPTION ", finally passed February 6, 1958, M • • which ordinance is of record in the official minutes of said City OCouncil. At said election held November 2, 1957, street improvement bonds were authorized in the principal sum of $1,396,000, and drain- age improvement bonds were authorized in the principal sum of $300,000. The bonds of this issue are composed of $700,000 bonds as a parcel and first installment out of the voted $1,396,000 street improvement bonds, and all the voted $300,000 drainage improvement bonds. IT IS HEREBY CERTIFIED, RECITED, AND REPRESENTED that all acts, conditions, and things necessary to be done precedent to and in the issuance of this bond, and this series of bonds, in order to render the same legal, valid, and binding obligations of said City, have been done, have happened, and have been performed in regular and due time, form, and manner, as required by law; that due 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 the levy of a direct annual ad valorem tax upon all taxable property within said City sufficient for said purposes; and that this series of bonds, together with all other indebtedness of said City, does not exceed any Constitutional or statutory limitation. IN TESTIMONY WHEREOF, the City Council of the City of Baytown, Texas, has caused the corporate seal of said City to be affixed hereto, and, in accordance with the provisions of Article 717j, Vernon's Texas Civil Statutes, has caused this bond to be signed by the Mayor and countersigned by the City Clerk, by their facsimile signatures, and has caused the interest coupons hereto annexed also to be executed by the facsimile signatures of said Mayor and City Clerk, all as of the 15th day of February, 1958. Mayor, City of Baytown, Texas COUNTERSIGNED: City Clerk *(For interest rates, see Section 4.) -7- 10 U . \ • • Section 7: FORM OF INTEREST COUPONS: That the form of interest coupons attached to such bonds shall be substantially as follows: No. $ ON THE 15TH DAY OF 19 , THE CITY OF BAYTOWN, in the County of Harris, State of Texas, PROMISES TO PAY TO BEARER, without exchange or collection charges, at the Citizens National Bank & Trust Co., Baytown, Texas, THE SUM OF $ in law- ful money of the United States of America, being the interest due that date on City of Baytown Street and Drainage Improvement Bond, Series 1958, dated February 15, 1958, Bond No. City Clerk Mayor, City of Baytown, Texas Section 8: COMPTROLLER'S CERTIFICATE: That substantially the following certifi- cate shall be printed on the back of each of said bonds, which cer- tificate shall be manually subscribed: OFFICE OF THE COMPTROLLER O THE STATE OF TEXAS io REGISTER NO. I HEREBY CERTIFY that there is on file and of record in my of- Tice a certificate of the Attorney General of the State of Texas to the effect that this bond has been examined by him as required by law, and that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas, and that it is a valid and binding obligation of the.City of Baytown, Texas; and said bond 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 Section 9: 9.01 - APPROPRIATION OF BOND PROCEEDS: That there is hereby appropri- ated out of the proceeds of the sale of the bonds authorized by this ordinance (a) the sum of $700,000 for the purpose of constructing permanent street improvements in and for said City, and (b) the sum of $300,000 for the purpose of constructing permanent drainage im- provements in and for said City. It is estimated that the maximum costs of constructing said permanent street improvements will be $700,000, and that the maximum costs of constructing said permanent drainage improvements will be $300,000; consequently, there is no necessity for any down payments, and no such down payments are made. 9.02 - APPLICATION OF BOND PROCEEDS: That the proceeds of sale of the bonds hereby authorized shall be used and expended for the pur- pose of .constructing permanent street improvements and for the pur- pose of constructing permanent drainage improvements, in and for said City, as outlined in the ordinance adopted October 10, 19571 calling the bond election which was held in said City on the 2nd O day of November, 1957• Section 10: TAX LEVY: That while said bonds or any part of the principal there- of or interest thereon remain outstanding and unpaid, there is hereby levied and there shall be annually assessed and collected in due time, form, and manner, and at the same time other City taxes are assessed, levied, and collected, in each year, beginning with the current year 1958, a continuing direct annual ad valorem tax on each $.100 valuation of taxable property in said City at a rate sufficient to pay the current interest on said bonds and to create and provide ® a sinking fund of not less than two per cent of the principal amount of the bonds then outstanding or of not less than the amount required to pay the principal of said bonds payable out of said tax, whichever is greater, full allowance being made for delinquencies and costs of collection; and said taxes when collected shall be ap- plied to the payment of the principal of and interest'on said bonds, and to no other purpose. To pay the interest on said bonds falling due August 15, 1958, there is hereby appropriated out of lawfully available current funds of the City (which funds are not otherwise Oallocated, appropriated, or encumbered) the sum of $/'7, Soo D . which sum shall be placedw -3n the'Interest• and einking,fund• hereby created 0 to be used only for the stated purpose. ® Section 11: V I• 0 APPROVAL AND REGISTRATION OF BONDS: That it shall be the duty of the Mayor to submit the record of said bonds, and the bonds, to the Attorney General of the State of Texas for examination and approval, and thereafter to have them registered by the Comptroller of Public Accounts of Texas. SALE OF BONDS Section 12: That said bonds, having been advertised for sale as provided in Section 63 of Article VI of the City's Home -Rule Charter,; and sealed proposals having been received therefor, it is hereby and determined that the bid submitted by to purchase said bonds at a price equal to the principal amount thereof plus accrued interest thereon from the date thereof to the date of actual delivery, plus a cash premium of $ 7 % 7 7 1 , is the best bid received, and the sale of said bonds to the named bid- der'at the stated price, subject to the unqualified approving opinion, as to the legality of said bonds, of the Attorney General of the State -of Texas and market attorneys selected by said purchaser, is hereby authorized, approved, ratified, and confirmed. When said bonds have been approved by the said Attorney General and registered by the Comptroller of Public Accounts of the State of Texas, they shall be delivered to the purchaser upon receipt of the full purchase price. Section 1 DUTIES OF MAYOR AND CITY CLERK: That the Mayor and the City Clerk are hereby authorized and directed to do any and all things necessary ® and /or convenient to carry out the terms of this ordinance. -10- I• Section 14: • EFFECTIVE DATE OF ORDINANCE: That this ordinance shall take effect and be in full force from and after its adoption. PASSED AND APPROVED, this the 6th day of February, 1958. Mayor, City of Baytown,.Texas A ST: r -City Clerk, City of Baytown, Texas ® .(SEAL) I KI -11-