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)