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Ordinance No. 778o) ORDINANCE AUTHORIZING THE ISSUANCE OF $750,000 WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS; PRESCRIBING THE TERMS AND PROVISIONS THEREOF; APPROPRIATING THE SUM OF $750,000 OUT OF THE PROCEEDS OF SALE FOR IMPROVEMENTS TO THE CITY'S SANITARY SEWER SYSTEM; MAKING PROVISION FOR THE PAYMENT OF THE PRINCIPAL THEREOF AND INTEREST THEREON; AWARDING THE SALE THEREOF; CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT; AND DECLARING THAT TIIIS ORDIiANCE SHALL BE EFFECTIVE IMMEDIATELY UPON TTS ADOPTION THE STATE OF TEXAS § COUNTY OF HARRIS § The City Council of the City of Baytown, Texas, convened in rec;ul.ar sessiur ut the City Hall within said City on the 24th day of February, 1966, with the following members and the City -Clerk present, to -wit: Seaborn Cravey A, M. Braswell J. Robert Barnes C, M. Massey J, C. Huron Don M. Hullum Raymond Donnally Mayor Councilman Councilman Councilman Councilman Councilman Councilman Edna Oliver City Clerk and the following member(s) absent, to -wit: when, among other business, the following was transacted: The Mayor introduced an ordinance which was read in full, Councilman ty made a motion that the ordinance I be adopted as read, Councilman twj_ seconded the motion for adoption of the ordinance. The motion, carrying with it the adoption of the ordinance, prevailed by the following vote: AYES: Councilmen Braswell, Barnes, Massey, Huron, Hul.lum and Donnally, NOES: None,, The Mayor thereupon announced that the ordinance had been duly and lawfully adopted, The ordinance thus adopted follows: -2- ORDINANCE AUTHORIZING THE ISSUANCE OF $7509000 WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS; PRESCRIBING THE TERMS AND PROVISIONS THEREOF; APPROPRIATING THE SUM OF $750,000 OUT OF THE PROCEEDS OF SALE FOR IMPROVEMENTS TO THE CITY'S SANITARY SEWER SYSTEM; MAKING PROVISION FOR THE PAYMENT OF THE PRINCIPAL THEREOF AND INTEREST THEREON; AWARDING THE SALE .THEREOF; CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT; AND DECLARING THAT THIS ORDINANCE SHALL BE EFFECTIVE IMMEDIATELY' UPON ITS ADOPTION WHEREAS, the City of Baytown, Texas, presently has out- standing and payable from the net revenues derived from the operation of its waterworks and sanitary sewer system the follow- ing revenue bonds: CITY OF BAYTOWN, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS, SERIES 1957, dated May 15, 1957, approved by the Attorney General of the State of Texas on the 6th day of June, 1957, and registered by the Comptroller, of Public Accounts of Texas on the 7th day of June, 1957, under Registration No. 31865, or!Eznal.ly issued in the amount of $465,000, of which $89,000 in principal amount presently remains outstanding and unpaid; and CITY OF BAYTOWN, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1958, dated February 1.5, 1958, approved by the Attorney General of the State of Texas on the 25th day of February, 1958, and registered by the Comptroller of Public Accounts of Texas on the same date under Registration :No, 32265, originally issued in. the principal amount of $1,000,000, all of which presently remains outstanding and unpaid; and WHEREAS, the foregoing indebtedness constitutes all of the outstanding indebtedness payable from the revenues from the operation of the waterworks and sanitary sewer system of said City of Baytown, Texas; and WHEREAS, it is expressly provided in the proceedings authorizing said outstanding bonds that the City reserves --3- the right to issue additional parity revenue bonds and such additional parity -r,evenue bonds, when issued., may be secured by and payable from a first lien and pledge of the net revenues of such system in the same manner and to the same extent as the outstanding bonds; and WHEREAS, at an election. held within the City of Baytown, Texas, on the 6t1i day of March, 1965,, 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 $1,.175,000 revenue bonds for the purpose of improving, enlarging, extending, or repairing the City's sanitary sewer system; said bonds to be payable from the net revenues of the City's waterworks and sanitary sewer system, and said bonds to mature serially within forty (40) years from their date or dates and to bear interest at a rate or rates not to exceed five per cent (5 %) per annum; and WHEREAS, an election was called and notice thereof was given and said election was held in accordance and in conformity wlth the Constitution and laws of the State of Texas and the Home --Rule Charter of said City of Baytown, Texas; and WHEREAS, the City Council of said City has heretofore officially canvassed the returns of said election and determined and declared the specific authority of the City to issue such bonds; and WHEREAS, the City Council has determined, and hereby affirmatively determines and declares, that it would be to _4_ the best interest of the City to issue and sell at this time a first installment of $750,000 bonds out of said total voted bonds, leaving the remaining $425,000 bonds to be issued here- after when needed to carry out the voted purpose; and WHEREAS, the City Council wishes to proceed with the authorization, issuance, sale: and delivery of said first installment bonds; Therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: RATIFICATION OF ORDINANCE: That the ordinance heretofore adopted by the City Council of the City of Baytown, Texas, on the 11th day of February, 1965 (authorizing the issuance of the $750,000 revenue bonds described in the preamble to this order and calling an election therefor), is hereby in all. things ratified and confirmed, Section 2: NAME, AMOUNT, PURPOSE AND AUTHORIZATION: That the serial coupon revenue bonds of the City of Baytown, Texas, be issued in the principal amount of $750,000, to be known and designated as "CITY OF BAYTOWN, TEXAS, WATERWORKS AND SANITARY' SEWER SYSTEM REVENUE BONDS, SERIES 1966'', for the purpose of improving, enlarging, extending, or repairing the City's sanitary sewer system, under and in strict con.f ormity with the Constitution and laws of the State of Texas, particularly Articles 11.11 to .1118, both inclusive, Vernon's Texas Civil Statutes, as amended, the Home -Rule Charter of said City, and as authorized by a vote of the duly qualified electors of said City who owned taxable _5_ property within said City and who had duly rendered the same for taxation, voting at an election held within said City on Cho 6th day of Marcn, 1965 (the bonds hereby authorized con- stituting a portion and first installment out of a total of $1,175,000 revenue bonds authorized at said election), Section 3: DATE. NUMBERS, DENO.M.I:NATION AND MATUR:I:TI:ES: That said revenue bonds shall be dated February 15, 1966, shall be numbered consecutively from 1 to 150, born inclusive, shall be in the denomination of $5,000 each, aggregating $750,000, and shall become due and payable serially in their numerical order, without option of prior redemption, on the 15th day of May in each of the years 1980 to 1986, both inclusive, in the respective amounts shown in the following schedule, to --wit: Bond Numbers Year of Amount {both incl.) Maturity Maturing to 1 - 12 1980 $ 60,000 13 - 33 1981, 105,000 34 - 55 1982 110,000 56 - 78 1983 115,000 79 -- 101 1984 10,000 102 .- 125 1985 120,000 126 - 150 1986 125,000 Section 4: 4x01 INTEREST RATES AND INTEREST PAYMENT DATES: That said bonds shall bear interest per annum at the following rates, respectively: Bonds Nos, 1 to both inclusive, Bonds Nos, to both inclusive, and Bonds Nos, to both inclusive, -6- interest payable November 15, 1966, and semi- annually thereafter on May 15th and November 15th in each year until the principal. sum is paid, 4002 - MEDIUM AND PLACE 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 said bonds and /or the interest coupons appurtenant thereto, at TY1e first City National Bank of Houston, Houston, Texas, in any coin or currency which, on the respective dates of payment of such principal and interest, is legal. tender for the payment of debts due the United States of America, 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 to said bonds as such interest coupons severally become due, Section 5: EXECUTION OF BONDS AND INTEREST COUPONS: Tnat the facsimile of the official seal of said City sha1:1 be printed, engraved, lithographed or stamped on each of said bonds, and each of said bonds shall be signed by the Mayor and countersigned by the City Clerk of said City by their printed, engraved, lithographed or stamped facsimile signatures, and the interest coupons attached to said bonds shall also be executed by the facsimile signatures of the Mayor and City Clerk, Said facsimile seal on the bonds and said facsimile signatures on the bonds and _ 7- interest coupons snail. have the same effect as if the official seal. of the City had been manually impressed upon each such bond and as if the Mayor and City Clerk had in person and manually signed each such bond and interest coupon. The registration certificate of the Comptroller of Public Accounts of the State of Texas, which certificate is to be printed upon the back of eacin of said bonds as hereafter provided in Section 8 of this ordinance, shall be manually subscribed. Q - - ;- ; -- r, . FORM OF BONDS: That said bonds shall be in substantially the following form: Noo $5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF HARRIS CITY OF BAYTOWN, TEXAS WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BOND, SERIES 1966 FOR VALUE RECEIVED, the City of Baytown, in the County of Harris, in the State of Texas, hereby acknowledges itself indebted to and PROMISES TO PAY TO BEARER ON THE FIFTEENTH DAY OF MAY, 19�, solely from the special fund hereinafter specified, the sum of FIVE THOUSAND DOLLARS ($5,000), with interest thereon from the date hereof at the rate of / (NOTE TO PRINTER: For interest rates, see Section 4.01 of bond ordinance) per annum, interest payable November 15, 1966, and semi- annually thereafter on May 15th and November 15th of each year until. the principal sum hereof shall have been paid. -8- Both principal of and interest on this bond shall. be payable in any coin or currency which, on the respective dates of payment of such. principal and interest, is lega.i tender for the payment of debts clue the. United State; of America, at the First City National Bank of Houston, Houston., Texas, without exchange or collection charges to the owner or holder, The principal hereof shall be payable only upon presentation and surrender of this bond, and interest hereon. falling due on and prior to the maturity of this bond srzall be payable only upon presentation and surrender of the interest coupons hereto attached as such coupons severally become due THE DATE OF THIS BOND, in conformity with the ordinance hereinafter mentioned, IS FEBRUARY 15, .1966, THIS BOND IS ONE OF A SERIES OF 150 SERIAL SPECIAL OBLIGATION BONDS of like tenor and effect, except as to serial number, interest rate and maturity, being numbered consecutively from 1 to 150, both inclusive, it the denomination of $5,00o each, aggregating $750,000 (said bonds constituting a portion and first installment out of a total of $1,175,000 bonds voted at the election hereinafter mentioned), and together with the other bonds of said series is issued for the purpose of improving, enlarging, extending or repairing the City's sanitary sewer system, under and in Strict conformity with. the Constitution and laws of the State of Texas, particularly Articles 1.11.1 to 1118, both inclusive, Vernon's Texas Civil Statutes, as amended, the Home -Rule Charter of said City, and by authority of a vote of the duly qualified electors of said City who owned taxable WE property within said City and who had duly rendered the same for taxation, at an election held within said City on the 6th day of March, 1966, and pursuant to an ordinance lawfully adopted by the City Council of said City, entitled ".ORDINANCE AUTHORIZING THE ISSUANCE OF $750,000 WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS; PRESCRIBING THE TERMS AND PROVISIONS THEREOF; APPROPRIATING THE SUM OF $750,000 OUT OF THE PROCEEDS OF SALE FOR IMPROVEMENTS TO THE CITY'S SANITARY SEWER SYSTEM; MAKING PROVISION FOR THE PAYMENT OF THE PRINCIPAL THEREOF AND INTEREST THEREON; AWARDING THE SALE THEREOF; CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT; AND DECLARING THAT THIS ORDINANCE SHALL BE EFFECTIVE IMMEDIATELY UPON ITS ADOPTION ", finally passed February 24, 1966, which ordinance is of record in the official minutes of said City Council, to all the provisions of which the owner or holder of this bond by the acceptance thereof expressly assents. EACH SUCCESSIVE HOLDER OF THIS BOND and each successive holder of each of the interest coupons hereto attached is conclusively presumed to forego and renounce his equities in favor of subsequent holders for value and without notice, and to agree that this bond and each of the coupons hereto attached may be negotiated by delivery by any person having possession thereof, howsoever 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 prior holder and free from all equities -10- and claims of ownership of any such prior holder, The City of Baytown, Texas, 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, together with the other bonds of this series of bonds and the out- standing City of Baytown, Texas, Waterworks and Sewer System Revenue Refunding Bonds, Series 1957, dated May 15, 1957, and the outstanding City of Baytown, Texas, Waterworks and Sewer System Bonds, Series 1958, dated February 15, 1958 (said out- standing bonds being hereinafter referred to as the "Outstanding Bonds ") 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 bonds of this issue and the Outstanding Bonds being in all respects on a parity with one another). 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. THE CITY EXPRESSLY RESERVES THE RIGHT TO ISSUE the remaining $425,000 voted bonds authorized at the election held March 6, 1966, and additional bonds payable from the net revenues of said waterworks and sanitary sewer system, and such remain- ing voted bonds and additional bonds may be on a parity in all respects with the bonds of this issue and the Outstanding Bonds, -11- but such remaining voted bonds and additional parity bonds may be issued only pursuant to and subject to the restrictions, covenants, and limitations contained in the ordinance authoriz- ing this issue of bonds, to which reference is hereby made for all particulars and to all the provisions of which ordinance the owner or, holder of this bond by the accpetance thereof expressly assents. IT IS HEREBY CERTIFIED, RECITED, AND DECLARED 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 required to be done precedent to and in the issuance of this bond and 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 15::nds of the series of which it is a part and the Outstanding Bonds by irrevocably pledging the net revenues of said waterworks and sanitary sewer system; and that the issuance of this series of bonds does not exceed any Constitutional or statutory limitation. IN TESTIMONY WHEREOF, the City Council of the City of Baytown, Texas, has caused the facsimile of the corporate seal of said City to be printed, engraved, lithographed or stamped hereon, this bond to be signed by the Mayor of said City and countersigned by the City Clerk, by their printed, engraved, lithographed or stamped facsimile signatures, and the interest -12- coupons hereto annexed also to be executed by the facsimile signatures of said Mayor and City Secretary, all as of the 15th day of February, 1966. COUNTERSIGNED. City Clerk, City of Baytown, Texas Mayor, City of Baytown, Texas Section 7: FORM OF INTEREST COUPONS: That the interest coupons to be attached to said bonds shall be in substantially the following form: No. ON THE FIRST 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 any coin or currency of the United States of America which on such date is legal tender for the payment of debts due the United States of America, solely from the special fund specified in the bond to which this coupon appertains, said sum being interest due that date on City of Baytown, Texas, Waterworks and Sanitary Sewer System Revenue Bond, Series 1966, bearing the number hereinafter specified, dated February 15, 1966. 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. Bond No. Mayor City Clerk -13- Section 8: REGISTRATION OF BONDS BY STATE COMPTROLLER AND FORM OF REGISTRATION CERTIFICATE: That each of said bonds shall be registered in the office of the Comptroller of Public Accounts of the: State of Texas, as provided by law, and the registration certificate of said Comptroller of Public Accounts shall be printed cn the back of each of said bonds, shall be manually executed, and shall be in substantially the following Form: OFFICE OF THE COMPTROLLER REGISTER NO. THE STATE OF TEXAS 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 -l�k- Section 9: 9.01 - APPROPRIATION OF BOND PROCEEDS: That there is hereby appropriated out of the proceeds of sale of the bonds author- ized by this ordinance the sum of $750,000 for the purpose of improving, enlarging, extending or repairing the City's sanitary sewer system. It is estimated that the maximum cost of improving, enlarging, extending or repairing the City's sanitary sewer system wi11 be $750,000; consequently, there is no necessity for any down payment and no such down pa,ymient is made. 0.02 - APPLICATION OF BOND PROCEEDS: That the proceeds of sale of the bonds hereby authorized shall be used and expended for the purposes of extending and improving the sanitary sewer system, as outlined in the ordinance adopted February 11, 1065, calling the bond election which was held in said City on the 6th day of March, 1965. Section 10: DEFINITIONS: That, as used in this ordinance, the following terms shall mean and include, and are defined, as follows, to -wit: (a) City -- the City of Baytown, Texas, and, where appropriate, the City Council thereof. (b) System - the waterworks and sanitary sewer system of tk-�e City, including all present and future extensions, replacements, and improvements thereto. (c) Net Revenues - the gross revenues derived fr.,rrl 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 -15- 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 necessary to meet some physical accident or condition which would otherwise impair the original security. (d) Bonds - the $750,000 Series 1966 revenue bonds authorized by this ordinance. (e) Outstanding Bonds - (1) the outstanding bonds of the City's $465,000 Waterworks and Sewer System Revenue Refunding Bonds, Series 1957, dated May 15, 1957, and (2) the outstanding bonds of the City's $1,000,000 Waterworks and Sewer System Revenue Bonds, Series 1958, dated February 15, 1958. (f) 1957 Ordinance - the ordinance adopted by the City Council on the 13th day of May, 1957, authorizing the issuance of the $465,000 Waterworks and Sewer System Revenue Refunding Bonds, Series 1957. (g) 1958 Ordinance - the ordinance adopted by the City on the 6th day of February, 1958, authorizing the issuance of $1,000,000 Waterworks and Sewer System Revenue Bonds, Series 1958. (h) Remaining Voted Bonds - the remaining $425,000 bonds authorized at the election held March 6, 1965, and which the City expressly reserves the right to issue in the bonds and in Section 13 of this ordinance. (i) Additional Bonds - the additional parity revenue bonds that the City expressly reserves the right to issue in the bonds and in Section 13 of this ordinance. -16- (j) Bond Fund - the interest and sinking fund and Reserve Account for the Outstanding Bonds, Bonds, Remaining Voted Bonds, and Additional Bonds, which fund is established in Section 9.02(b) of the 1957 Ordinance. (k) Bond Fund Reserve Account - the portion of the Bond Fund created as a reserve for the Outstanding Bonds, Bonds, Remaining Voted Bonds, and Additional Bonds by Section 9.02(b) of the 1957 Ordinance. (1) Contingencies Fund - the special fund for contingencies, which fund is established in Section 9.02(c) of the 1957 Ordinance. Section 11: ADOPTION OF PROVISIONS OF 1957 ORDINANCE: That the Bonds authorized by this ordinance shall be issued upon the terms and conditions contained in Sections 9 to 12, both inclusive, of the 1957 Ordinance, and the designated portions of said 1957 Ordinance shall apply with equal force to the Bonds hereby authorized as though such provisions were fully set forth herein; provided, however, that where said designated provisions of the 1957 Ordinance may be inconsistent or in conflict with the terms or provisions of this ordinance, then the terms or provisions of this ordinance shall govern. The Bonds and the Outstanding Bonds are in all respects on a parity and of equal dignity with one another. Section 12: 12.01 - ADDITIONAL PAYMENTS INTO THE BOND FUND: After the payment of all maintenance and operation expenses of the System -17- as provided it Section 9o02(a) of the 1.957 Ordinance and in addition. to tine payrr,ents into the Bond Fund required by the 1957 . Ordinance and the 1958 Ordinance and at the same time payments are made into said Bond Fund under tree provisions of said 1957 Ordinance and said 1958 Ordinance, the City, from the funds in the System Fund, shall pay into the Bond Fund each year beginning with the year in which the Bonds are issued, an amount equal to 100% of the amount required to meet the interest and principal payments falling due on and before the next maturity date of tine Bonds, :In addition to such payments and in addition tc the payments into the Bond Fund Reserve Account required by the 1957 Ordinance and the 1958 Ordinance, the City shall pay into the Bond Fund, from the System Fund, in each year 20% of the above required amount Buff -I-cient to meet the interest and principal payments falling due on or before the next maturity date of the Bonds and the interest and principal payment on the Bonds for one year thereafter Such additional payments shall be made into the Bond Fund Reserve Account established by the 1957 Ordinance. The amount requi.r.ed to be paid into the Bond Fund in each year shall be in substa.nti.ally equal monthly payments from the moneys in the System Fund after deductions have been made for paying the reasonable cost of operating and maintaining the System for such month, If the revenues of the System in any month, after deduction for operation and maintenance, are insufficient to make the required payment into the Bond Fund, including the Bond Fund Reserve Account, then the amount of any deficiency -18- 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 the Bonds, until there has been accumulated in the Bond Fund as a reserve, an amount sufficient to service the Bonds for one year. 12°02 - NO ADDITIONAL PAYMENTS REQUIRED FOR CONTINGENCIES FUNDS: That, insofar as the Bonds of this issue are concerned, no additional payments need be made into the Contingencies Fund (other than the payments into said Contingencies Fund required by the 1957 Ordinance) 1203 - APPLICATION OF 1.957 ORDINANCE: That'. except as provided herein, a. -_1. the provisions of the 1957 Ordinance relating to the payment or deposits of moneys into the Bond Fund and the Bond Fund Reserve Account and to the maintenance of said Bond Fund including said Bond Fund Reserve Account, shall apply to payments or deposits required by this Ordinance and to the maintenance of said Bond. Fund, including said Bond Fund Reserve Account. 1.2,04 - PARITY OF BONDS AND OUTSTANDING BONDS: That the Bonds and the Outstanding Bonds are, and shall be, in all respects on a parity, and of equal dignity with one another. Section 1-�: REMAINING VOTED BONDS AND ADDITIONAL BONDS: That, in addition to inferior lien, bonds authorized by Chapters 249 and 250, Acts of the 51st Legislature of Texas, 1949, as amended, the City -19 - . 3 reserves the right to issue the remaining $425,000 Bonds voted at the election held on March 6, 1965, in one or more installments, and Additional Parity Bonds, in one or more installments, and said Remaining Voted Bonds and said 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 Outstanding Bonds and the Bonds, and such Remaining Voted Bonds and Additional Bonds may in all respects be of equal dignity with the Outstanding Bonds and the Bonds. It is expressly provided, however, that the Remaining Voted Bonds or such Additional Bonds shall not be issued unless: (a) Each of the funds created by the 1957 Ordinance contains the amount of money then required ( by said 1957 Ordinance, the 1958 Ordinance, and by this ordinance) to be on deposit therein; and (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 the Remaining Voted Bonds or any Additional Bonds is adopted), as certified by an independent public accountant or firm of independent public accountants, were equal to at least one -20- and one -half (1 -1/2) 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 issued, 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 on May 15 in each of the years in which they are scheduled to mature. The term "net revenues" as used herein shall mean all of the revenues of the System (excluding income received specifically for capital items) after deduction of the reasonable expenses of operation and maintenance of the System (excluding expenditures for capital items). Section 14: SYSTEM AND REVENUES NOT ENCUMBERED: The City covenants that neither the properties comprising the System nor the revenues of the System are in any way pledged or hypothecated except as the net revenues of the System are pledged to the payment of the Outstanding Bonds and the Bonds. Section 15: APPROVAL AND REGISTRATION OF BONDS: That it shall be the duty of the Mayor to submit the record of the Bonds, and the Bonds, -21- 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 the State of Texas. Section 16: SALE OF BONDS: That the 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 found and determined that the bids 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 $ is the best bid received, and the sale of said Bonds to the named bidder at the stated price, subject to the unqualified approving opinion as the legality of said Bonds, of the Attorney General of the State of Texas, and Vinson, Elkins, Weems & Searls, Houston, Texas, market attorneys, is hereby authorized, approved, rati.fled 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 17: DUTIES OF CITY OFFICERS: That the Mayor, the City Clerk, and other appropriate officials of the City are hereby authorized and directed to do any and all things necessary and /or con- venient to carry out the provisions of this ordinance. -22- I EFFECTIVE DATE OF ORDINANCE: That this ordinance shall take effect from and after its adoption, AND IT IS SO ORDAINED. PASSED AND APPROVED this 24tri day of February, 1966. k Mayor, City of Baytown, Texas f If['I li rY�l City Clerk, City of 2.y t own, a. ex.a s { ; LA L) -23-