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Ordinance No. 806ORDINANCE NO. 806 ORDINANCE AUTHORIZING THE ISSUANCE OF $78+,000 WATERWORKS AND SEWER SYSTEM REFUNDING BONDS, SERIES 1966; PRESCRIBING THE TERMS AND CONDITIONS THEREOF; LEVYING TAXES FOR THE PAYMENT OF PRINCIPAL AND IN- TEREST THEREON; CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT; AND PROVIDING THAT THIS ORDINANCE SHALL TAKE EFFECT UPON AND AFTER ITS ADOPTION THE STATE OF TEXAS § COUNTY OF HARRIS § The City Council of the City of Baytown, Texas, convened in regular session at the City Hall within said City on the 8th day of August, 1966, with the following members and the City Clerk present, to -wit: Seaborn Cravey Mayor A. M. Braswell Councilman Patrick Ball Councilman C. M, Massey Councilman Albert Fanestiel Councilman Don M. Hullum Councilman Raymond Donnally 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. Councilmano a"111,L".,, made a motion that the ordinance be adopted as read. Councilman 4r—Zt 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, Ball, Massey, Fanestiel, Hullum and Donnally. NOES: None. The Mayor thereupon announced that the ordinance had been duly and lawfully adopted. The ordinance thus adopted follows: � 21 t-- y 6 4 ORDINANCE AUTHORIZTNG THE ISSUANCE OF $784,000 WATERWORKS AND SEWER SYSTEM REFUNDING BONDS, SERIES 1966; PRESCRTBTNG THE TERMS AND CONDITIONS THEREOF; LEVYING TAXES FOR THE PAYMENT OF PRINCIPAL AND IN- TEREST THEREON; CONTAINING OTHER PROVISIONS RELATING TO ` I-T SUBJECT; AND PROVIDING THAT THIS ORDINANCE SHALL TAKE EFFECT UPON AND AFTER ITS ADOPTION WHEREAS, Harris County Fresh Water Supply District No� 8 has heretofore issued,among others, the following described bonds, to -wit: and (1) HARRIS COUNTY FRESH WATER SUPPLY DISTRICT NO. 8 WATER AND SEWER IMPROVEMENT BONDS, SERIES 1949, dated December 1, 1949, num- bered consecutively from 1 to 425, both in- clusive, in the denomination of $1,000 each, aggregating $425,000 which bonds were approved by the Attorney General of Texas on February 10, 1950, and registered the Comptroller of Public Accounts on the same date under Registration No. 26388; (2) HARRIS COUNTY FRESH WATER SUPPLY DISTRICT N0. 8 WATER AND SEWER IMPROVEMENT BONDS, SERIES 1952, dated June 1, 1952, numbered consecutively from 1 to 125, both inclusive, in the denomination of $1,000 each, aggregat- ing $125,000; and (3) HARRIS COUNTY FRESH WATER SUPPLY DISTRICT NO. 8 WATERWORKS AND SEWER SYSTEM UNLIMITED TAX BONDS, SERIES 1961, dated March 1, 1961, numbered consecutively from 1 to 350, both inclusive, in the denomination of $1,000 each, aggregating $350,000, which bonds were approved by the Attorney General. of Texas on April 19, 1961, and registered by the Comptroller of Public Accounts on the same date under Registration No. 34126; W`E[E1�E11S, Harris County Water Control and Improvement Dis- trict No. 53 has heretofore issued, among others, the following described bonds, to -wit: -2- and HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 58 WATERWORKS AND SANITARY SEWER SYSTEM COMBINATION REVENUE AND UNLIMITED TAX BONDS, SERIES 1959, dated August 1, 1959, numbered consecutively from 1 to 250, both in- clusive, in the denomination of $19000 each, aggregating $250,000 which bonds were approved by the Attorney General of Texas on the l5th day of September, 1959, and registered by the Comptroller of Public Accounts on the 16th day of September, 1959, under Registration No. 33841; WHEREAS, the City of Baytown, Texas, has heretofore annexed all of the territory within Harris County Fresh Water Supply Dis- trict No. 8, of Harris County, Texas, and within Harris County Water Control and Improvement District No. 58, of Harris County, Texas, and has assumed and become liable for the payment of all the debts and obligations of said Districts and said Districts have been abolished, and the City of Baytown, Texas, has taken over all of the assets and properties of said Districts; and WHEREAS, the City Council of Baytown hereby affirmatively finds that the above described Harris County Fresh Water Supply District No. 8 Series 1.949, Series 1952 and Series 196= Bonds and the above described Harris County Water Control and Improvement District No. 58 Series 1959 Bonds were the valid and b =nding ob- ligations of said Harris County Fresh Water Supply District No. 8 and Harris County Water Control and Improvement District No. 58, respectively, and by reason of the annexation of said Districts are now the valid and binding obligations of the City of Baytown, Texas; and -3- WHEREAS,, the owners and holders of: (a) $205,000 of the Harris County Fresh Water Supply District Noe 8 bonds described in paragraph numbered 1 hereof, maturing as follows: $15M -1973, $16M- 197'x/75, $17M- 1976, $18M -1977, $19M- 1978/79, $20M -1980, $21M -1981, $22M- 1982/83; (b) $105,000 of the Harris County Fresh Water Supply District No. 8 bonds described in paragraph numbered 2 hereof maturing as follows: $5M- 1975, $6M- 1976/81, $7M -1982/ 83, $25M- 1984/85; (c) $224,000 of the Harris County Fresh Water Supply District No. 8 bonds described in paragraph numbered 3 hereof, maturing as follows: $52M -1991, $55M -1992, $57M- 1993., $60M -1994; and (d) All of the Harris County Water Control and improvement District Noe 58 bonds described above, have consented to the refunding of such bends into the herein- after refunding bonds; and WHEREAS, it can be shown mathematically, and this City Council hereby affirmatively finds, that a savings will result in the total amount of interest to be paid by the City by issuing C fv�& #,L- the refunding bonds hereinafter mentioned, and said further finds that the rate of interest paid on the refunding bonds herein- after described will not exceed the maximum rate of interest author- ized at the election at which the original bonds were voted; and WHEREAS, the City Council of said City has determined it to be in the best interests of the City to refund said bonds into the $784,000 hereinafter described refunding bonds; Therefore TEXAS: BE iT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, -4- Rpr- -- i nn I NAME, AMOUNT, PURPOSE AND AUTHORIZATION OF BONDS: That the serial coupon bonds of the City of Baytown, Texas, to be known and desig- nated as "CITY OF BAYTOWN, WATERWORKS AND SEWER SYSTEM REFUNDING BONDS, SERIES 196611, be issued in the principal amount of $784,000, for the purpose of refunding, canceling and in lieu of $205,000 Harris County Fresh Water Supply District No. 8 Water and Sewer Improvement Bonds, Series 1949, dated December 1, 1949, $105,000 Harris County Fresh Water Supply District No. 8 Water and Sewer Improvement Bonds, Series 1952, dated dune 1, 1952, $224,000 Harris County Fresh Water Supply District No. 8 Waterworks and Sewer System Unlimited Tax Bonds, Series 1961, dated March 1, 1961, and $250,000 Harris County Water Control and Improvement District No. 58 Combination Revenue and Unlimited Tax Bonds, Series 1950, dated August 1, 1959, which bonds have been assumed by, and are now the valid and binding obligations of, the City of Baytown, under and by virtue of the Constitution and laws of the State of Texas, particularly Articles 1182c -1 and 2368a, Vernon's Texas Civil Statutes, 1925, as amended, and the Home Rule Charter of the City of Baytown. Section 2: 2.01 - DATE, BOND NUMBERS, DENOMINATIONS AND MATURITIES: That said bonds shall be dated August 1, 1966, shall be numbered con- secutively from 1 to 160, both inclusive, shall. be in the denomina- tion of $5,000 each, except Bonds Nos. 1 to 4, both inclusive, which shall be in the denomination of $1,000 each, aggregating $78±,000, and shall become due and payable serially in their numerical order -5- on February 1 in each of the years 1969 to 1994, both inclusive, except 1970, 1911, 1972, 1986, 1987, 1988 and 1989, in the re- spective amounts shown in the following schedule, to -wit: Bond Numbers Year of Amount: (both incl.) Maturity Maturing 1 - 4 1969 $ 4,000 5 - 7 1973 15,000 8 - 10 1974 15,000 11 - 14 1975 205000 15 - 19 1976 255000 20 - 24 1977 25,000 25 - 29 1978 25,000 30 - 34 1979 25,000 35 - 40 1980 30,000 47 - 47 1981 35,000 48 - 54 1982 35,000 55 - 61 1983 35,000 62 - 67 1984 30,000 68 - 73 1985 30,000 74 - 80 .1990 35,000 81 - 100 1991 100,000 101 - 120 1992 1003000 121 - 14o 1993 1003000 141 - 16o 1994 100,000 2.02 - OPTION OF PRIOR REDEMPTION: The City expressly reserves the right to redeem Bonds Nos. 35 to 160, both inclusive, of this issue, in whole or in part, on February 1, 1979, and on any interest payment date thereafter, by paying to the owners or holders thereof a sum equal tothe principal amount of the bonds called for redemption plus unpaid accrued interest thereon to the date fixed for redemption. If the City elects to redeem all or any part of said bonds on any such redemption date, notice of the exercise of the option to redeem shall be given in writing to the bank at which said bonds are payable, and said notice shall be published one (1) time in. a financial journal or publication of general circulation in the United States of America, which notice shall be mailed to W said bank and published in said journal ar publication at least thirty (30) days prior to the date fixed for redemption, When said bonds, in whole or in part, have been called for redemption in the manner prescribed and due provision has been made to pay the principal of the bonds called for redemption and unpaid ac- crued interest thereon to the date fixed for redemption, the right of the owners or holders to collect interest which would otherwise accrue after the redemption date on the bonds called for redemption shall terminate on the date fixed for redemption. Section 3: 3cOl INTEREST RATES AND INTEREST PAYMENT DATES. That said �crlas shall bear interest from date until paid at the following rates per annum, to -wit: (a) From date to and including August 1, 1967, at the rate of 4% per annum; (b) From August 1, 1967, to and including August 1, 1968, at the rate of 4 --3/4/ per annum; (c) Thereafter, at the rate of 4% per annum until finally paid, payable February 1, 1967, and semi. - annually thereafter on August 1 and February 1 of each year until the principal sum is paid, lnterest on all bonds shall be represented by twa series �f C'COpcn: , attached tc ea_.h of said bends, as follows, and shall be severable and may pass upon delivery only: (a.) r'oupon Series No., 1 shall be numbered in consecutive numericalorder beginning with "1" and shall represent: interest at the rate per annum on all bonds of the series _7 — to the respective maturity dates (or to the date of redemption if the option is exercised prior to maturity); (b) Coupon Series 1A shall be numbered in con- secutive numerical order beginning with "l ", each of which figures shall be followed by the letter "A" and ,shall represent interest at the rate of 3/4 of 1% per annum on all bonds of this series from August 1, 1967, to and including August 1, 1968 3,.02 MEDIUM AND PLACE OF PAYMENT: That both principal of and interest: on said bonds shall be payable, without exchange or col - lection charges to the owners or holders of said bonds and /or the interest coupons appurtenant thereto, at the Citizens National Bank & Trust Co., Baytown, 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 such 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 presentation ar,d surrender of the interest coupons attached to said bonds as such coupons severally become due. --w c t l o n 4_ EXECUTION OF BONDS AND INTEREST COUPONS: That the facsimile of the i'i.i.ci.al seal of said City shall be printed, engraved, litho- graphe�Y 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 -8- bonds shall also be executed by the facsimile signature of the Mayor and City Clerk. Said facsimile seal on the bonds and said facsimile signatures on the bonds and interest coupons shall have the same effect as if the official seal of the City had been man- ually 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 each of said bonds as hereafter provided in Sec- tion 7 of this ordinance, shall be manually subscribed. Section 5: FORM OF BONDS: That said bonds shall be in substantially the fol- lowing form: No. $5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF HARRIS CITY OF BAYTOWN, TEXAS WATERWORKS AND SEWER SYSTEM REFUNDING 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 First day of February, 19 , the sum of FIVE THOUSAND DOLLARS (NOTE TO PRINTER: Bonds Nos. 1 to 4, both inclusive, are in the denomination of 1,000 each), and to pay interest thereon from the date hereof to and including August 1, 1967, at the rate of 4% per annum, from August 1, 1967, to and including August 1, 1968, at the rate of 4 -3/4% per annum, thereafter at the rate of 4% per annum, interest payable February 1, 1967, and semi - annually thereafter on August 1st and February lst of each year until the principal sum is paid. Both principal of and interest on this bond shall be payable in any coin or cur- rency 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, at the Citizens National Bank & Trust Co., Baytown, 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 shall be payable only upon presentation and surrender of the interest cou- pons hereto attached as such coupons severally become due. THE DATE OF THIS BOND, in conformity with the ordinance hereinafter mentioned, is AUGUST 1, 1966. THIS BOND IS ONE OF A SERIES OF 160 SERIAL COUPON BONDS of like tenor and effect, except as to serial number, denomina- tion, maturity and option of prior redemption, being numbered consecutively from 1 to 16C, both inclusive, in the denomination of $5,000 each, except Bonds Nos. 1 to 4, both inclusive, which are in the denomination of $1,000 each, aggregating $784,000, and are issued for the purpose of refunding canceling and in lieu of $205,000 Harris }ounty Fresh Water Supply District No. 8 Water and Sewer Improvement Bonds, Series 1949, dated December 1, 1949, $105,000 Harris County Fresh Water Supply District No. 8 Water and -10- Sewer Improvement Bonds, Series 1952, dated June 1, 1952, $224,000 Harris County Fresh Water Supply District No.. 8 Water- works and Sewer System Unlimited Tax Bonds, Series 1961, dated March 1, 1961, and $250,000 Harris County Water Control and Improvement District No, 58 Combination Revenue and Unlimited Tax Bends, Series 1959, dated August 1, 1959, which bonds have been assumed by, and are now the valid and binding obligations of, the City of Baytown, under and by virtue of the Constitution and laws of the State of Texas, particularly Articles 1182c -1 and 2368a, Vernon's Texas Civil Statutes, 1925, as amended, and the Home Rule Charter of the City of Baytown, and pursuant to an ordinance duly adopted by the City Council of said City entitled "ORD.TNANCE AUTHORIZING THE ISSUANCE OF $784,000 WATERWORKS AND SEWER SYS''1EM REFUNDING BONDS, ,SERIES 1966; PRESCRIBING THE'TERMS AND CONDITIONS THEREOF; LEVYING TAXES FOR THE PAYMENT OF PRINCIPAL AND INTERES'2 THEREON; CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT; AND PROVIDING THAT THIS ORDINANCE SHALL TAKE EFFECT UPON AND AFTER ITS ADOPTION ", finally passed on the 8th day of August, 1966 THE CITY EXPRESSLY RESERVES THE RIGHT TO REDEEM BONDS NOSo "35 to 160, both inclusive, of this issue, in whole or in part, on February 1, 1979, and on any interest payment date thereafter, by paying to the owners or holders thereof a sum equal tothe principal amc,,ant of the bonds called for redemption plus unpaid accrued in- terest thereon to the date fixed for redemption. If the City elects to redeem a_1 or arty part of said bonds on any such redemption date, notice of the exercise of the option to redeem shall be given in -11- writing to the bank at which said bonds are payable, and said notice shall be published one (1) time in a financial journal or publication of general circulation in the United Stages of America, which notice shall be mailed to said bank and published in said journal or publication at least thirty (30) days prior to the date fixed for redemption, When said bonds, in whole or in part, have been called for redemption in the manner prescribed and due provision has been made to pay the principal of the bonds called for redemption and unpaid accrued interest thereon to the date fixed for redemption, the right of the owners or holders to collect interest which would otherwise accrue after the redemption date on the bonds called for redemption shall terminate on the date fixed for redemption. 1T IS HEREBY CERTIFIED, RECITED AND DECLARFD that the issu- ance 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 have been properly done and performed, and have hazpened in regular and in due time, form and manner as required by iaw; 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 suff'iciert for said purposes; and that the total indebtedness of said City, including the series of bonds of which this is one, does not exceed any Constitutional or statutory limitation:, -12- THE HOLDER OF THIS BOND AND THE SERIES OF WHICH IT IS A PART shall be subrcgated to all the rights and privileges belong- ing tc the holder or holders of the bonds refunded by the issuance of this series of bonds9 except, as may be provided in the ordinance authorizing the issuance of this series of bonds. IN TESTIMONY WHEREOF, the City Council of the City of Baytown, Texas, has caused the facsimile of the corporate seal of said City tc be printed, engraved, lithographed or stamped herecn, this bond to be signed by the Mayor and countersigned by r.he city Clerk by their printed, engraved, lithographed or stamped facsimile signatures, and the annexed coupons also to be signed by said facsirriile signatures of the Mayor and City Clerk, a11. as of t�-e ist day of August, 190' I�Tayor, City of Baytown, Texas COUNTERSIuNED: City Clerk, City of Baytown, Texas Section 6: F, fi 0�1 INTEREST COUPONS. That the. interest, coupons to be at- t.a(hed to said bonds shall ke in substantially the following form: NOm TF]i- FIRST DAY OF 1. y , � the CITY OF ?- AV:N)'WN, ire the Courit,y of Harris, State of 'Texas, PROMIL'SES TO PAY 11 - TO) Bt:t'�K�H, without; exchange or collection charges, at the Citizens _l j�. National Bank & Trust Co., Baytown, Texas, the sum of $ , in any coin or currency which on such date is legal tender for the payment of debts due the United States of America, being interest due that date on City of Baytown, Texas, Waterworks and Sewer System Refunding Bonds, `series 1966, bearing the number herein- after specified, dated August 1, 1966,. Mayor, City of Baytown, Texas City Clerk, City of Baytown, Texas *(Coupons maturing after February 1, 1979 shall contain the following additional clause- unless the bond to which this coupon appertains has been called for previ- ous redemption and due provision made to redeem same,) Section 7: REGISTRATION OF BONDS BY STATE COMPTROLLER AND FORM OF REGISTRATION CERTi ICATE: That each of said bonds shall be registered by the Compt.rul.l..er of Public Accounts of the State of Texas, as provided by law, and the registration certificate of the said Comptroller., which certificate is to be printed upon the back of each of said bon::, and is to be manually executed, shall be in substantially t.ho following ing .farm: O V I V E 00 THE COMPTROLLER RE51STE R NO K&HEBY CERTIFY that there is on file and of record in my office a certificate of the AtUrney General of the State of -A_ Texas to the effect that this bond has been examined by him as required by law; that he finds that 7t has been issued in con- formity with the Constitution and laws of the State of Texas; and that it is a valid and binding obligation upon the City of Baytown, of Harris County, Texas; and said bond has this day been registered by me WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas, Comptrcller of Public Accounts of the State of Texas Rw r; nn A SUBROGATION OF RIGHTS: That, except as provided in this ordinance, inc Linder or holders of the refunding bonds authorized by this ordinance shall be subrogated to all the rights and privileges welonging to the holder or holders of the underlying bonds which are being refunded hereby. T TE RE:ST AND SINKING FUND AND TAX LEVY: That there is hereby crva.t.ed a special fund to be designated "CITY OF BAYTOWN, TEXAS, WA`I KHhQAKS AND SEWER KY STEM REFUNDING BONDS, SERIES 1966, INTEREST Ann StNKING POND ". and tht ra is hereby transferred to said Fund the into rest and sinking fund of the bonds being refunded and the pro- t jo p" l oil tuxan levio 3 assessed and cis1 acted for and on ac- count of the bonds being refunded hereby and for the bonds author- Quo up Lh i s order, shall be deposited into said Fund. While said bonds or any part of the principal thereof or interest thereon remain. outstanding and unpaid there is hereby levied and there shall be ar.n.ually assessed and collected in doze time, form and manner and at the same time other city taxes are levied, assessed and collected, in each year, beginning with the current year, a continuing direct ad valorem tax upon all taxable property in said City sufficient to pay the current interest thereon as it accrues and to create a sinking fund of not less than two per cent (2f) of the principal amount of said bonds then outstanding, or of not less than the amount regvi.red to pay the principal of said bonds payable out of said tax, whichever is greater, full allowance being made for de-- linsuenci.es and costs of collection; and said taxes when collected nail be applied tG the payment: of the principal and interest: on said bonds and to no other purpose_ Section 10: DUTIES OF CITY OFFICIALS: That the Mayo cf the City shall be authorized to take and have charge of all necessary records penning investigation by the Attorney General cf Texas, and shall naXe and have charge and control Gf the refunding bonds herein ai c'hnraea pending their approval by the Attorney General of Texas ann x.cheir registration by the Comptroller of Public Accounts, hone of said refunding bonds authorized herein shall be registered until a.11. ,;f they indebtedness refunded hereby has been surrendered tc and �ar:.__eled try the said Comptroaler of Pcrbl -ic. Accounts. When the bonds rwf�ndnd hereby have been delivered to and canceled by said Ccmp- r ra i At- r and the refunding bond; authorized herein have been regis- tereci by said Comptroller, the said Comptroller is authorized and respectfully requested to deliver the refunding bonds to the holder or holders of the bonds surrendered. The Mayor and City Clerk and other appropriate officers of the City are hereby authorized and directed to do any and all things necessary and /or convenient to carry out the provisions of this ordinance. Section 11: EFFECTIVE DATE OF ORDINANCE: That this ordinance shall become effective and be in full force upon and after its adoption, and it is so ordered. PASSED AND APPROVED this 8th day of August, 1966. Mayor, City of Baytown, xas ATTEST: Out° City Clerk, City of Baytown, Texas (SEAL)