Ordinance No. 415.
L�
ORDINANCE M. 415
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
$465,000 WATERWORKS AND SEWER SYSTEM REVENUE
REFUNDING BONDS; PRESCRIBING THE TERMS AND
CONDITIONS THEREOF; PROVIDING FOR THE PAYMENT
THEREOF; PROVIDING FOR THE EXCHANGE OF SAID
BONDS FOR THE PRESENTLY OUTSTANDING REVENUE
BONDS; CONTAINING 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
• i*.' pecial session at the City Hall within said City on the
day of May, 1957, with the following members present, to -wit:
R. H.
Pruett
Mayor
W. C.
Swain
Councilman
James
Garrison
Councilman
Al Clayton
be
Councilman
Paul
Mears
Councilman
Walter
Lane Ward
Councilman
Lacy
Lusk
Councilman
Edna
Oliver
City Clerk
and the following members absent, to-wit: "e/p/V
, when the following
business was transacted:
•
The Mayor introduced an
ordinance which
was read
in
full.
Councilman 4,4fzl made a
motion that the
ordinance
be
ad-
opted as read. The motion for adoption was seconded by Councilman
=[/s h , and carried by the following vote: AYES: Council-
men Swain, Garrison, Clayton, Mears, Ward, Lusk, and Mayor Pruett.
NOES: None. The ordinance thus adopted follows:
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
$465,000 WATERWORKS AND SEWER SYSTEM REVENUE
REFUNDING BONDS; PRESCRIBING THE TERMS AND
CONDITIONS THEREOF; PROVIDING FOR THE PAYMENT
THEREOF; PROVIDING FOR THE EXCHANGE OF SAID
BONDS FOR THE PRESENTLY OUTSTANDING REVENUE
BONDS; CONTAINING OTHER PROVISIONS RELATING
TO THE SUBJECT; AND PROVIDING THAT THIS
ORDINANCE SHALL TAKE EFFECT FROM AND AFTER
ITS ADOPTION
F.
WHEREAS, the City of Baytown, Texas, is successor to the
Cities of Goose Creek, Texas, and Pelly, Texas; and
WHEREAS, said City of Baytown has heretofore annexed all
of the territory within Harris County Water Control and Improve-
ment District No. 7, and has assumed and become liable for the
payment of all debts and obligations of said District, and said
District has been abolished, and the City has taken over all of
the assets and properties of said District; and
WHEREAS, the following described revenue bonds issued by
9 said City of Goose Creek, City of Pelly, and Harris County water
Control and Improvement District No. 7 are outstanding and
unpaid:
• and
(a) City of Goose Creek Waterworks and Sewer System
Revenue Bonds, dated August 1, 1945, Bonds Nos. t
90/150 and 207/250, aggregating $105,000, matur-
ing August 1, 1958/64 (Comptroller's Registration
No. 22967 and No. 23852);
(b) City of Pelly Waterworks and Sewer System Revenue
Bonds, dated December 1, 1945, Bonds Nos. 50/150
and 182/235, aggregating $155,000, maturing
December 1, 1958/70 (Comptroller's Registration
No. 23102 and 23662) ;
(c) Harris County Water Control and Improvement Dis-
trict No. 7 Waterworks and Sewer System Revenue
Bonds, Series 1945, dated March 1, 1945, Bonds
Nos. 43/147, aggregating $105,000, maturing March
1, 1958/75 (Comptroller's Registration No. 22760);
(d) Harris County Water Control and Improvement Dis-
trict No. 7 Waterworks and Sewer System Revenue
Bonds, Series 1945A, dated September 1, 1945,
Bonds Nos. 21/60, aggregating $40,000, maturing
September 1, 1958/75 (Comptroller's Registration
No. 22966); and
(e) Harris County Water Control and Improvement Dis-
trict No. 7 Waterworks and Sewer System Revenue
Bonds, Series 1946, dated December 1, 1946, Bonds
Nos. 31/90, aggregating $60,000, maturing December
1, 1958/75 (Comptroller's Registration No. );
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WHEREAS, the owners and holders of certain of said out-
standing bonds have consented to the refunding of said bonds as
hereinafter provided in this ordinance, and the City Council has
heretofore authorized the calling of the remaining outstanding
bonds for redemption in the manner provided in the proceedings
authorizing the issuance of said bonds; and
WHEREAS, the refunding of said outstanding bonds, as
hereinafter provided, will effect a substantial savings in inter-
est to be paid on said indebtedness, and the City Council is of
• the opinion that it is to the best interests of the City to re-
fund said bonds in the manner hereinafter provided; Therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
BAYTOWN:
Section 1:
NAME, AMOUNT, PURPOSE AND AUTHORIZATION: That the bonds of the
City of Baytown, Texas, be issued in the principal amount of
$465,000, to be known and designated as "CITY OF BAYTOWN WATER-
WORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS, SERIES 1957 ", for
amble to this ordinance, under and in strict conformity with the
Constitution and laws of the State of Texas, particularly Articles
1111 to 1118, both inclusive, 1182c -1, and 2368a, Vernon's Texas
Civil Statutes, 1925, together with all additions to and amend-
ments of said statutes, and the Charter of said City of Baytown.
Section 2:
DATE, NUMBERS, DENOMINATION,_AMOUNT, INTERESTS RATES, AND MATUR-
ITY: That said bonds shall be dated May 15, 1957, shall be
• numbered consecutively from 1 to 465, both inclusive, shall be
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the purpose
of refunding, canceling,
and
in lieu of
a like prin-
cipal amount
of outstanding revenue
bonds
described
in the�pre-
amble to this ordinance, under and in strict conformity with the
Constitution and laws of the State of Texas, particularly Articles
1111 to 1118, both inclusive, 1182c -1, and 2368a, Vernon's Texas
Civil Statutes, 1925, together with all additions to and amend-
ments of said statutes, and the Charter of said City of Baytown.
Section 2:
DATE, NUMBERS, DENOMINATION,_AMOUNT, INTERESTS RATES, AND MATUR-
ITY: That said bonds shall be dated May 15, 1957, shall be
• numbered consecutively from 1 to 465, both inclusive, shall be
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in the denomination of $1,000 each, aggregating $465,000, shall
bear interest at the rates shown in the following schedule, and
shall become due and payable serially on the 15th day of May in
each of the years 1958 to 1967, both inclusive, in the respec-
tive amounts shown in the following schedule, to -wit:
Section 3:
3.01 - INTEREST RATES: That said bonds shall bear interest per
annum at the rates set forth in the schedule provided above in
Section 2 of this ordinance, to -wit:
Interest Rate Bonds Nos.
3 -1/2% 1/33, 41/75, 83/118, and 127/159;
4% 34/40, 76/82, 119/126, 160/172,
200/220, and 388/417;
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Interest
Bonds
Nos.
Maturity
Rate
Amount
1 -
33
1958
3 -1/2%
$ 33,000
34 -
40
1958
4%
7,000
41 -
75
1959
3 -1/2%
35,000
76 -
82
1959
4%
7,000
83 -
118
196o
3 -1/2%
36,000
119 -
126
196o
4%
8,000
127 -
159
•1961
3 -1/2,%
33,000
16o -
172
1961
4%
13,000
173 -
199
1962
3 -3/4%
27,000
200 -
220
1962
4%
21,000
221 -
261
1963
3 -3/4%
41,000
262 -
270
1963
4 -1/4%
9,000
271 -
303
1964
3 -3/4%
33,000
3o4 -
322
1964
4 -1/4%
19,000
323 -
329
1965
3 -3/4%
7,000
330 -
376
1965
4 -1/4%
47,000
377 -
387
1966
3 -3/4%
11,000
388 -
417
1966
4%
30,000
418 -
432
1966
4 -1/4%
15,000
433 -
439
1967
3 -3/4%
7,000
440 -
465
1967
4 -1 /4%
26,000
Section 3:
3.01 - INTEREST RATES: That said bonds shall bear interest per
annum at the rates set forth in the schedule provided above in
Section 2 of this ordinance, to -wit:
Interest Rate Bonds Nos.
3 -1/2% 1/33, 41/75, 83/118, and 127/159;
4% 34/40, 76/82, 119/126, 160/172,
200/220, and 388/417;
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• Interest Rate
3-3/4%
4 -1/4%
E
Bonds Nos.
173/199, 221/261, 271/303, 323/329,
377/387, and 433/439;
262/270, 304/322, 330/376, 418/432,
and 440/465;
interest payable November 15, 1957, and semi- annually thereafter
on May 15th and November 15th of each year until the principal
sum is paid.
3.02 - PAYING AGENT: That both principal of and interest on said
bonds shall be payable in lawful money of the United States of
• America, without exchange or collection charges to the owners or
holders, at The First City National Bank of Houston, Houston,
Texas. The principal of said bonds shall be payable only upon
presentation and surrender of said bonds as they respectively be-
come due, and interest falling due on and prior to the respective
maturity dates of the bonds shall be payable only upon presenta-
tion and surrender of the interest coupons attached to said bonds
as they severally become due.
Rcnti nn LL
•
EXECUTION OF BONDS
AND INTEREST COUPONS:
That,
in accordance with
the provisions of
Chapter 293, Acts of the
54th
Legislature of
Texas, Regular Session, 1955 (codified in Vernon's Texas Civil
Statutes as Article 717j), each of said bonds shall be signed by
the Mayor and countersigned by the. City Clerk, by their facsimile
signatures, and the corporate seal of said City shall be impressed
upon each of said bonds. The interest coupons attached to said
bonds shall also be executed by the facsimile signatures of said
Mayor and City Clerk. Said facsimile signatures, as above pro-
vided, may be engraved, lithographed, or printed, and shall have
the same effect as if said bonds and coupons had been signed in
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person by each of said officers. The Comptroller's Registration
Certificate, as set forth hereafter in Section 7 of this ordin-
ance, shall be manually subscribed.
Section 5:
FORM OF BOND: That the form of said bonds shall be substantially
as follows:
No.
$1,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF HARRIS
CITY OF BAYTOWN
WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BOND
SERIES 1957
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 MAY,
19 , solely from the special fund hereinafter specified, the
sum of
ONE THOUSAND DOLLARS
($1,000), with interest thereon from the date hereof at the rate
of * % per annum, interest payable November 15, 1957, and semi-
annually thereafter on May 15th and November 15th of each year
until the principal sum hereof shall have been paid. Both prin-
cipal of and interest on this bond are payable in lawful money of
the United States of America, without exchange or collection
charges to the owner or holder, at The First City National Bank
of Houston, Houston, Texas. The principal hereof shall be pay-
able only upon presentation and surrender of this bond, and in-
terest falling due on and prior to the maturity of this bond
shall be payable only upon presentation and surrender of the in-
terest coupons hereto attached as they severally become due.
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•
•
• THE DATE OF THIS BOND, in conformity with the ordinance
hereinafter mentioned, is MAY 15, 1957.
THIS BOND IS ONE OF A SERIES OF 465 BONDS of like date
and tenor, except as to number, maturity, and interest rate, be-
ing numbered consecutively from 1 to 465, both inclusive, in the
denomination of $1,000 each, AGGREGATING $465,000, and is issued
for the purpose of refunding, canceling, and in lieu of an equal
principal amount of outstanding revenue bonds, to -wit: $105,000
revenue bonds issued by the City of Goose Creek, Texas, $155,000
0 revenue bonds issued by the City of Relly, Texas, and $205,000
revenue bonds issued by Harris County Water Control and Improve-
ment District No. 7, said outstanding bonds now being valid and
binding special obligations of the City of Baytown (said City of
Baytown being successor to said Cities of Goose Creek and Pelly
and to said Harris County Water Control and Improvement District
No. 7), under and in strict conformity with the Constitution and
laws of the State of Texas, particularly Articles 1111 to 1118,
both inclusive, 1182c -1, and 2368a, Vernon's Texas Civil Statutes,
• 1925, together with all additions to and amendments of said sta-
tutes, and the Charter of said City of Baytown, and pursuant to
an ordinance duly adopted by the City Council of said City of
Baytown, which ordinance is of record in the official minutes of
said City Council.
EACH SUCCESSIVE HOLDER of this bond and each successive
holder of each of the coupons hereto attached is conclusively
presumed to forego and renounce his equities in favor of subse-
quent holders for value and without notice, and to agree that this
0 bond and each of the coupons hereto attached, may be negotiated
by delivery by any person having possession thereof, howsoever
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such possession may have been acquired, and that any holder who
shall have taken this bond or any of the coupons from any person
for value and without notice thereby has acquired absolute title
thereto, free from any defenses enforceable against any such
prior holder and free from all equities and claims of ownership
of any such prior holder. The City of Baytown and its officials
and fiscal agents shall not be affected by any notice to the
contrary.
THIS BOND SHALL NOT BE DEEMED TO CONSTITUTE A DEBT of
the City of Baytown or a pledge of its faith and credit, but
shall be payable, as to principal and interest, solely from the
revenues derived from the operation of the City's waterworks and
sanitary sewer system, including all additions, extensions, and
improvements thereto which may hereafter be made, after deduction
of the reasonable expenses of maintenance and operation of said
system. 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 bond and the series of which it is a part is
duly authorized by law; that all acts, conditions, and things re-
quired to exist and to be done precedent to and in the issuance of
this series of bonds to render the same lawful and valid have been
properly done and performed, and have happened 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 irrevocably
pledging the net revenues of said waterworks and sanitary sewer
system; and that the issuance of this series of bonds does not
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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
Chapter 293, Acts of the 54th Legislature of Texas, Regular Ses-
sion, 1955 (codified in Vernon's Texas Civil Statutes as Article
717j), has caused this bond to be signed by the Mayor of said
City and countersigned by the City Clerk, by their facsimile
signatures, and has caused the interest coupons hereto annexed
• also to be executed by the facimile signatures of said Mayor and
City Clerk, all as of the 15th day of May, 1957.
Mayor, City o Baytown, Texas
COUNTERSIGNED:
City Clerk
-(For interest rates, see Sections 2 and 3.)
Section 6:
FORM OF COUPON: That the form of coupon attached to such bonds
shall be substantially as follows:
IM
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
First City National Bank of Houston, Houston, Texas, the sum of
, in lawful money of the United States of America,
solely from the special fund specified in the bond to which this
coupon appertains, said sum being the interest due that date on
City of Baytown Waterworks and Sewer System Revenue Refunding
Bond, Series 1957, dated May 15, 1957. The holder hereof sham.
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never have the right to demand payment of this obligation out of
any funds raised or to be raised by taxation. Bond No.
Mayo , City of NaYtown, exa.
City Clerk
Section 7:
FORM OF COMPTROLLER'S CERTIFICATE: That substantially the fol-
lowing certificate shall be printed on the back of each of said
THE STATE OF TEXAS REGISTER NO.
I HEREBY CERTIFY that there is on file and of record in
my office a certificate of the Attorney General of the State of
Texas to the effect that this 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 is a valid and binding special obligation of the -City of
Baytown, Texas, payable from the revenues pledged to its payment
• by and in the ordinance authorizing the same, 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 8:
8.01 - CONSOLIDATION OF SYSTEMS: That all public waterworks and
• sanitary sewer systems operating in the City of Baytown are hereby
consolidated into one waterworks and sanitary sewer system of said
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bonds,
which
certificate shall be manually subscribed:
OFFICE
OF THE
COMPTROLLER
THE STATE OF TEXAS REGISTER NO.
I HEREBY CERTIFY that there is on file and of record in
my office a certificate of the Attorney General of the State of
Texas to the effect that this 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 is a valid and binding special obligation of the -City of
Baytown, Texas, payable from the revenues pledged to its payment
• by and in the ordinance authorizing the same, 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 8:
8.01 - CONSOLIDATION OF SYSTEMS: That all public waterworks and
• sanitary sewer systems operating in the City of Baytown are hereby
consolidated into one waterworks and sanitary sewer system of said
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•
•
• City. Without limiting the generalization of the foregoing, it
is expressly provided that the following waterworks and sanitary
sewer systems established by:
City of Goose
City of Pelly
Harris County
Harris County
Harris County
Harris County
Creek, Texas
Texas
Fresh Water Supply District No. 2
Fresh Water Supply District No. 10
Water Control and Improvement District
No. 7
Water Control and Improvement District
No. 30
are hereby consolidated into the City of Baytown Waterworks and
0 Sanitary Sewer System.
8.02 - DEFINITIONS: That, as used in this ordinance, the follow-
ing terms shall mean and include, and are defined, as follows,
to -wit:
(a) City - the City of Baytown, Texas, and, where appro-
priate, the City Council thereof.
(b) System - the Waterworks and Sanitary Sewer System of
the City, including all present and future extensions, replace-
ments, and improvements to said Waterworks and Sanitary Sewer
System.
• (c) Net Revenues - the gross revenues derived from the
operation of the System less the reasonable expenses of operation
and maintenance of said System, including all salaries, labor,
materials, interest, and such repairs and extensions as in the
judgment of the governing body of the City are necessary to keep
the plant or utility in operation and render adequate service to
the City and the inhabitants thereof, or such as might be neces-
sary to meet some physical accident or condition which would
otherwise impair the original security.
0 (d) Bonds - the $465,000 Series 1957 bonds authorized by
this ordinance.
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•
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• (e) Additional Bonds - the additional bonds that the City
expressly reserves the right to issue in Section 9.06 of this
ordinance.
Section 9:
PLEDGE OF NET REVENUES: That all the net revenues derived from
the operation of the System, with the exception of those in ex-
cess of the amounts required to establish and maintain the funds
as hereinafter provided in this ordinance, are hereby irrevocably
.. pledged to the payment of the Bonds and, when and if issued, the
0 Additional Bonds. For the benefit of the original and all sub-
Sequent holders of the Bonds, coupons, or any part thereof, and
in addition to all other provisions and covenants in the laws of
the State of Texas and in this ordinance, it is expressly stipu-
lated:
9.01 - RATES: The City shall fix and maintain rates and collect
charges for the facilities and services afforded by the System,
which will provide revenues sufficient_at all times:
(a) To pay all operation, maintenance, depreciation, re-
less than one and one -half (1 -1/2) times the average annual prin-
cipal and interest requirements of all bonds then outstanding pay-
able from the revenues of the System;
(c) To establish and maintain the Revenue Bond Fund (in-
cluding the Reserve Account thereof) and the Contingencies Fund,
hereinafter mentioned;
(d) To pay all outstanding indebtedness against the Sys-
placement,
and
betterment charges of
the
System;
(b)
To
produce net revenues
each
year in an amount not
less than one and one -half (1 -1/2) times the average annual prin-
cipal and interest requirements of all bonds then outstanding pay-
able from the revenues of the System;
(c) To establish and maintain the Revenue Bond Fund (in-
cluding the Reserve Account thereof) and the Contingencies Fund,
hereinafter mentioned;
(d) To pay all outstanding indebtedness against the Sys-
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tem, other
than
the Bonds and (when
issued)
the Additional Bonds,
as and when
the
same becomes due.
Provided
also that no free
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• services of the System shall be allowed, and should the City or
any of its agencies or instrumentalities make use of the services,
payment of the reasonable value thereof shall be made by the City
out of funds derived from sources other than revenues and income
of the System.
9.02 - USE OF REVENUES: The City will deposit, as collected, all
revenues derived from the operation of the System into a separate
account (herein called the "System Fund "), which shall be kept
separate and apart from all other funds of the City. The System.'
0 Fund shall be administered as follows:
(a) Maintenance and operation: From the moneys in the
System Fund, the City shall pay the expenses of operation and
maintenance of the System, including all salaries, labor, mate-
rials, interest, and such repairs and extensions as in the judg-
ment of the governing body of the City are necessary to keep the
plant or utility in operation and render adequate service to such
City and the inhabitants or such as might be necessary to meet
some physical accident or conditions which would otherwise impair
• the original security.
(b) Revenue Bond Fund: There is hereby created and
established a special fund for the payment of the interest on and
principal of the Bonds, which fund is hereinafter referred to as
the "Bond Fund." From the funds in the System Fund, the City
shall pay into the Bond Fund during each year beginning with the
date of the Bonds, an amount equal to 100 per centum of the amount
required to meet the interest and principal payments falling due
on and before the next maturity date of the Bonds. In addition
• to such payment, the City shall pay into the Bond Fund, from the
System Fund,in each year 20 per centum of the above required
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• amount until such time as there is in the Bond Fund an amount
sufficient to meet the interest and principal payments falling
due on or before the next maturity date of the Bonds and the
interest and principal payments on the Bonds for one year there-
after. Such additional payments shall constitute and be known
as the Bond Reserve Account. The amount required to be paid
into the Bond Fund in each year shall be in substantially equal
monthly payments from the moneys in the System Fund after de-
ductions have been made for paying the reasonable cost of oper-
ating and maintaining the System for such month. If the reven-
ues of the System in any month, after deductions for operation
and maintenance, are insufficient to make the required payment
into the Bond Fund, including the Bond Reserve Account, then
the amount of any deficiency in such payment shall be added to
the amount otherwise required to be paid into the Bond Fund in
the next month. It is the intent of this provision that the
sums paid into the Bond Fund shall be in excess of the immediate
requirements for payment of current interest and principal on
0 the bonds, until there has been accumulated in the Bond Fund,
as a reserve, an amount sufficient to service the Bonds for one
year.
The moneys in the Bond Fund shall be used solely for the
purpose of paying interest on and principal of the Bonds until
all Bonds have been retired; provided that, when the total in
the Bond Fund is equal to the aggregate principal amount of all
bonds outstanding and payable from said Bond Fund, plus accrued
interest thereon, the moneys in the Bond Fund may be used to
• purchase such bonds at a price., exclusive of accrued interest,
not exceeding the principal amount thereof.
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The Bond Fund shall be established and maintained at The
First City National Bank of Houston, Houston, Texas, and the
moneys paid into said Bond Fund, as required by this ordinance,
shall be deposited on or before the 20th day of each month, be-
ginning May 20, 1957, at said Bank. The moneys deposited in the
Bond Fund shall be continuously secured by a valid pledge to the
City of direct obligations of the United States of America having
an aggregate market value, exclusive of accrued interest, at all
times at least equal to such Bond Fund.
Moneys in the Bond Reserve Account, at the option of the
City, may be invested in direct obligations of the United States
of America, maturing within ten (10) years from the date of pur-
chase or maturing before the final maturity of the Bonds, which-
ever-shall first occur, which shall be deposited in escrow with
said Bank under an escrow agreement. If such funds are so in-
vested and deposited in escrow, the City shall have the right to
have sold through the escrow agent on the open market a suffi-
cient amount of said securities in order to meet its obligations
of principal and interest in the event it does not have sufficient
funds, uninvested, on hand for such purpose. Under such circum-
stances, the Mayor is hereby authorized, ordered, and directed to
give fifteen (15) days' notice to such escrow agent of the neces-
sity to sell said securities on the open market. After such sale,
the moneys resulting therefrom shall belong to the Bond Reserve
Account of the Bond Fund, and shall be available to pay such obli-
gations of principal and interest.
So long as the Bond Reserve Account contains a balance of
not less than an amount sufficient to service the Bonds for one
year, as above provided, no further payments need be made into
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• said Reserve Account; provided, that if said balance is ever
reduced to an amount which is less than that specified above,
payments into said Reserve Account shall be resumed, as above
provided, and shall be continued until said Account contains a
balance of not less than an amount sufficient to service the
Bonds for one year, as above provided.
(c) Contingencies Fund: There is hereby created and
established a special fund, as a reserve for contingencies,
which fund is hereby referred to as the 'Contingencies Fund."
® After the payments required by Sections 9.02(a) and 9.02(b),
above, have been made, the City, on or before the 20th day of
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each month, beginning W 20, 1957, from moneys in the System
Fund, shall deposit in the Contingencies Fund a sum not less
than $500.00, and such monthly payments shall be continued until
such time as there is in the Contingencies Fund a balance of
not less than $50,000.00. Moneys in the Contingencies Fund
shall be used only (1) to pay unusual maintenance and operation
expenses, as such expenses are defined in Section 9.02(a) above,
event there are otherwise insufficient moneys for such purposes.
If in any month the City shall for any reason fail to
pay into said Contingencies Fund the full amount above stipu-
lated, amounts equivalent to such deficiencies shall be set
apart and paid into said Contingencies Fund from the first
available and unallocated revenues of the following'month or
months and shall be in addition to the monthly deposit herein-
0'
for which there
are no other
moneys available,
and (2)
to pre-
Fund.
vent a default
in the payment
of principal and
interest
in the
event there are otherwise insufficient moneys for such purposes.
If in any month the City shall for any reason fail to
pay into said Contingencies Fund the full amount above stipu-
lated, amounts equivalent to such deficiencies shall be set
apart and paid into said Contingencies Fund from the first
available and unallocated revenues of the following'month or
months and shall be in addition to the monthly deposit herein-
0'
above
provided to be otherwise
paid
into said Contingencies
Fund.
Said Contingencies Fund
shall
be established and
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• maintained at the Citizens National Bank & Trust Co., Baytown,
Texas, and shall be continuously secured by a valid pledge to
the City of direct obligations of the United States of America,
having an aggregate market value, exclusive of accrued interest,
at all times at least equal to such Reserve Fund. Moneys in the
Contingencies Fund, at the option of the City, may be invested in
direct obligations of the United States of America, maturing
within ten (10) years from the date of purchase or maturing be-
fore the final maturity of the Bonds, whichever shall first
• occur, which shall be deposited in escrow with said Bank under
an escrow agreement. if such funds are so invested and deposited
f
in escrow,the City shall have the right to have sold, and shall.;,,
sell, through the escrow agent, on the open market a sufficient
amount of such securities to meet its duties and obligations,
as herein provided, in the event it does not have sufficient in-
vested funds on hand for such purpose. Under such circumstances,
the Mayor is hereby authorized, ordered, and directed to give
fifteen (15) days' written notice to such escrow agent of the
0 necessity to sell such securities in the open market. After said
sale, the moneys resulting therefrom shall belong to the Contin-
gencies Fund and shall be available for the purposes as herein
provided.
When a balance of not less than $50,000•is reached in
the Contingencies Fund, no further payment need be made into said
Fund; however, in the event that said balance is ever reduced to
an amount less than $50,000, the monthly payments, as above pro-
vided, shall be resumed and continued until said balance of
® $50,000 is again reached and maintained.
(d) Trust Funds: Moneys in the Bond Fund (including the
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i
L
i
t
Reserve Account) and in the Contingencies Fund shall constitute
trust funds, and shall be used solely for the purposes herein
provided until all the Bonds have been retired. When there are
moneys in said Bond Fund and Contingencies Fund sufficient to
make all interest payments and principal payments due and to be-
come due to the final maturity of all bonds then outstanding
payable from the revenues of the System, no further payments need
be made into said Bond Fund and Contingencies Fund.
(e) Surplus: Any funds remaining in the System Fund
after provision has been made for the reasonable cost of operat-
ing and maintaining the System, and after paying the amounts
required to be paid into the Bond Fund and Contingencies Fund,
as above provided, and after all payments that may be required
by ordinances pertaining to Additional Bonds have been made, may
be used by the City for any lawful purpose.
9.03 - MAINTENANCE AND OPERATION: That the City shall maintain
the System in good condition and operate the same in an efficient
manner and at a reasonable cost. So long as any of the Bonds are
outstanding, the City agrees to maintain insurance for the bene-
fit of the holder or holders of the Bonds on the System of a kind
and in an amount which would usually be carried by private com-
panies engaged in a similar type of business. Nothing in this
ordinance shall be construed as requiring the City to expend any
funds for this purpose which are derived from sources other than
the operation of the System, but nothing herein shall be construed
as preventing the City from doing so.
9.04 - ACCOUNTS AND REPORTS: That the City shall keep proper re-
cords and accounts (separate and apart from all other records and
accounts of the City) in which complete and correct entries shall
• •
• be made of all transactions relating to the System.
is
0
S
The City will
operate the System and will keep its books of records and accounts
on the basis of a fiscal year ending September 30th. Not later
than sixty (60) days after the close of each fiscal year, begin-
ning with the fiscal year ending September 30, 1958, the City will
furnish (without cost) to Moroney, Beissner & Co., Houston, Texas,
and to any holder of any of the Bonds who may so request in writ-
ing, a signed or certified copy of a report by an independent firm
of certified public accountants, coverning the next preceding
fiscal year, showing as to such year the following information
relating to the System:
(a) Income and expense statement;
(b) Balance sheet;
(c) Accountant's comment regarding the manner in which the
City has complied with the requirements of this ordinance, and his
recommendation for any changes or improvements in the operation of
the System;
(d) List of insurance policies in force at the end of such
year, showing, as to each policy, the risk covered, the name of
the insurer, and the expiration date;
(e) The number of properties connected with the waterworks
system and the number of properties connected with the sanitary
sewer system; and the total income from the System for such year;
(f) The number of unmetered customers of the waterworks
system at the end of such year, if any; and
(g) The number of gallons of water pumped into or taken
by the waterworks system and the number of gallons of water sold
during said year.
9.05 - INSPECTIONS: The original purchaser of the Bonds and any
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• holder of 25% or more in principal amount of the Bonds then out-
standing shall have the right at any reasonable time to inspect
the System and all records, accounts and data of,the City relat-
ing thereto.
2.06 - ADDITIONAL BONDS: In addition to inferior lien bonds
authorized by Chapters 249 and 250, Acts of the 51st Legislature
of Texas, Regular Session, 1949, as amended (Articles lllla and
llllb, Vernon's Texas Civil Statutes, 1925, as amended), the City
expressly reserves the right to issue additional parity bonds in
• one or more installments and in one or more issues, and such
Additional Bonds, when.issued, may be secured by and payable from
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 Bonds, and such
Additional Bonds may in all respects be of equal dignity with said
Bonds. It is expressly provided, however, that no Additional Bonds
shall be issued unless:
(a) Each of the funds created by this ordinance contains
the amount of money then required to be on deposit therein;
•
(b)
The
net revenues
of the System
for
the last preceding
fiscal year
(the
fiscal year
next preceding
the
month in which the
ordinance authorizing any Additional Bonds is adopted), as certi-
tZt' / r d
c a.
fied by an I t public accountant or firm of independent
public accountants, were equal to at least one and one -half (1 -112)
times the requirements for the payment of principal and interest on
all bonds that will be outstanding and payable from the revenues
of the System after the bonds then proposed to be issued are is-
sued, sold, and delivered, for the calendar year in which said
• requirements are greatest; and
(c) The bonds then proposed to be issued are made to mature
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• on May 15th in each of the years in which they are scheduled to
0
0
mature.
;I gRer,.V ♦ G ll i
The term net e64?4�&$ as used herein shall mean all of
the net revenues of the System (excluding income received speci-
fically for capital items) after deduction of the reasonable
expenses of operation and maintenance of the System (excluding
expenditures for capital items).
Section 10:
A/✓� p /�1 Fri p7Lo��7�
SYSTEM OF RECORDS AND ACCOUNTS: That the Mayor,,,, Gi-t-y— el-e�; a-nd
Cit3r— T-re.asur -e-x are hereby instructed and directed to do any and
all things in reference to the installing and maintaining of a
complete system of records and accounts pertaining to the System
and to make the moneys available for the payment of the Bonds in
the manner provided by law.
Section 11:
SPECIAL COVENANTS: That the City covenants, by and through this
ordinance, as follows:
11.01 - POWER TO PLEDGE REVENUES: That it has lawful power to
pledge the revenues supporting this issue of Bonds and has law-
fully exercised its power under the Constitution and laws of the
State of Texas, including said power existing under Articles 1111
to 1118, both inclusive, and Article*1182c -1, Vernon's Texas Civil
Statutes, 1925, as amended; that the Bonds shall be ratably se-
cured under said pledge of income, and in such manner that one
Bond shall have no preference over any other Bond.
a
11.02 - REVENUES NOT ENCUMBERED: That the City covenants and
represents that other than for the outstanding bonds of the fol-
lowing issues:
(a) City of Goose Creek Waterworks and Sewer System
Revenue Bonds, dated August 1, 1945;
- 21 -
• (b) City of Pelly Waterworks and Sewer System
Revenue Bonds, dated December 1, 1945;
(c) Harris County Water Control and Improvement
District No. 7 Waterworks and Sewer System
Revenue Bonds, Series 1945, dated March 1,
1945;
(d) Harris County Water Control and Improvement
District No. 7 Waterworks and Sewer System
Revenue Bonds, Series 1945A, dated September c,
1; 1945;
(e) Harris County Water Control and Improvement
District No. 7 Waterworks and Sewer System
Revenue Bonds, Series 1946, dated December
1, 1946; and
• (f) Harris County Water Control and Improvement
District No. 30 Waterworks and Sewer System
Combination Tax and Revenue Bonds, 1952,
dated April 1, 1952,
the rents, revenues, properties, and income of the System are not
in any manner pledged to the payment of any other debt or obliga-
tion of the City, nor of the System. That all outstanding bonds
of the issues described above in (a), (b), (c), (d), and (e) are
to be retired or refunded by the issuance of the Bonds hereby
authorized; and that all outstanding bonds of the issue described
above in (f) are to be refunded by the $230,000 City of Baytown
• Waterworks and'Sewer System Refunding Bonds, Series 1957, dated
May 15, 1957, now in process of issuance.
11.03 - SALE OR ENCUMBRANCE OF SYSTEM OF REVENUES: That, so long
as any of the Bonds remain outstanding, the City will not sell or
encumber the System, or any substantial part thereof, and that,
with the exception of the Additional Bonds mentioned in Section
9.06 of this ordinance, when issued in accordance with the terms
and conditions of this ordinance, it will not encumber the reven-
ues of the System unless such encumbrance is made junior and sub-
0 ordinate to the Bonds and to all the provisions of this ordinance.
- 22 -
0 11.04 - NO COMPETING SYSTEM:
That the City further covenants and
agrees, to the extent that it legally may, that so long as any of
the Bonds or interest thereon are outstanding, no franchise shall
be granted for the installation or operation of any competing
system, that the City will prohibit the operation of any system
other than the System owned by the City, and that the operation
of any such system by anyone other than the City is hereby pro-
hibited.
Section 12:
. ORDINANCE IS CONTRACT: That the provisions of this ordinance
shall constitute a contract between the City and the holder or
holders from time to time of the Bonds, and after the issuance
of any of said Bonds, no change, variation, or alteration of
any kind in the provisions of this ordinance may be made until
all the Bonds have been paid in full as to both principal and
interest.
Section 13:
APPROVAL AND REGISTRATION OF BONDS: That it shall be the duty
tof the Mayor to submit the record of the Bonds, and the Bonds,
to the Attorney General of Texas for examination and approval,
and thereafter to have them registered by the Comptroller of
Public Accounts of Texas.
Section 14:
CANCELATION AND EXCHANGE OF BONDS: That the details governing
the cancelation and exchange of the underlying bonds for the
Bonds shall be fixed and specified by ordinance to be subsequently
adopted by this City Countil.
Section 15:
DUTIES OF MAYOR AND CITY CLERK: That the Mayor and City Clerk
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0
•
0
.I
are hereby authorized and directed to do any and all things ne-
cessary and /or convenient to carry out the terms of this ordin-
ance.
Section 16:
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 day of May, 1957.
Mayor, City of Baytown, T&xas
AT EST
City Clerk, City of Baytown,
Texas
(SEAL)
THE STATE OF TEXAS §
COUNTY OF HARRIS §
I, the undersigned, City Clerk of the City of Baytown,
is Texas, do hereby certify that the attached and foregoing is a
true and correct copy of an ordinance adopted by the City Council
of said City at a meeting held on the /,-? Uday of May, 1957,
together with an excerpt from the minutes of said meeting showing
the adoption thereof, as same appears of record in the official
minutes of said City Council on file in my office.
WITNESS MY HAND AND THE OFFICIAL SEAL OF SAID CITY, this
the `''��day of May, 1957.
City Clerk, City of Baytown, Texas
(SEAL)
- 2 _