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Ordinance No. 868ORDINANCE N0. 868 ORDINANCE AUTHORIZING THE ISSUANCE OF $891,000 GENERAL OBLIGATION BONDS, SERIES 1967;. PRESCRIBING THE TERMS AND CONDITIONS THEREOF; APPROPRIATING THE SUM OF $8911%000 OUT OF THE PROCEEDS OF SALE OF SUCH BONDS FOR VARIOUS PROJECTS; LEVYING TAXES FOR THE PAYMENT OF PRINCIPAL AND INTEREST THEREON; AWARDING THE SALE THEREOF; 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 25th day of May, 1967, with the following members and the City Clerk present, to-wit: Seaborn Cravey Mayor A. M. Braswell Councilman • •RiiiiT6&0 u.. Glen Walker Councilman Al- bert-- F-afre-st el -- _._ _ , r.. ._Councilman Don M. Hullum Councilman Lamar Kelley Councilman Mrs. Edna Oliver City Clerk and the following member(s) absent, to- wit : it, '4vF_Ah/EYf1Et- when, among other business, the following was transacted: The Mayor introduced an ordinance which was read in full. Councilman 13j+A5y-dre 4_ made a motion that the ordinance be adopted as read. Councilman K E LI-f- W, 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, Ba± 1, Walker, Fa7re7t -el Hullum, and Kelley. 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 $891,000 GENERAL OBLIGATION BONDS, SERIES 1967; PRESCRIBING THE TERMS AND CONDITIONS THEREOF; APPROPRIATING THE SUM OF $891,000 OUT OF THE PROCEEDS OF SALE OF SUCH BONDS FOR VARIOUS PROJECTS; LEVYING TAXES FOR THE PAYMENT OF PRINCIPAL AND INTEREST THEREON; AWARDING THE SALE THEREOF; CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT; AND PROVIDING THAT THIS ORDINANCE SHALL TAKE EFFECT UPON AND AFTER ITS ADOPTION WHEREAS, pursuant to an ordinance adopted by the City Council of the City of Baytown, Texas, on the 11th day of February, 1965, an election was held within said City of Baytown on the 6th day of March, 1965, whereat 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 in said election, voted in favor of the issuance of: (a) $1,661,000 for the purpose of constructing permanent street improvements in and for said City; (b) $130,000 for the purpose of constructing permanent drainage improvements in and for said City; (c) $300,000 for the purpose of constructing and equipping a municipal building, to -wit: a city hall building; (d) $55,000 for the purpose of constructing and equipping a municipal building, to -wit: a fire station building; (e) $740,000 for the purpose of constructing and equipping a municipal building, to -wit: a community center building, including the purchase of the necessary site therefor; and (f) $1,178,000 for the purpose of constructing improvement3 to the City's waterworks system, said bonds to be payable from ad valorem taxation and to mature serially over a period of not exceeding forty (40) years from their date or dates, and to bear interest at a rate or rates -3- not to exceed five per cent (5 %) per annum; and WHEREAS, said election was called and held under and in strict conformity with the Constitution and laws of the State of Texas and the Home -Rule Charter of the City of Baytown, Texas, and the City Council of said City has heretofore officially declared the results of said election and has determined and declared the specific authority of the City to issue said bonds; and WHEREAS, the City Council has heretofore authorized, issued and sold $900,000 of the bonds mentioned in Paragraph (a) above, all of the bonds mentioned in Paragraphs (c) and (e) above, and $100,000 of the bonds mentioned in Paragraph (f) above; and WHEREAS, the City Council has determined and deems it advisable to proceed with the authorization, issuance and sale of a third installment out of said total voted bonds of March 6, 1965, said third installment to consist of: $761,000 of the bonds mentioned in Paragraph (a) above and all of the bonds mentioned in Paragraph (b) above, leaving remaining the following described bonds to be issued, sold and delivered at a later date: (1) $55,000 for the purpose of constructing and equipping a municipal building, to -wit: a fire station building; and (2) $1,078,000 for the purpose of constructing improvements to the City's waterworks system; and WHEREAS, the City Council has caused a notice of sale of the third installment of bonds to be published in the Texas Bond Reporter (a publication carrying municipal bond notices and devoted primarily to financial news) and in the Baytown Sun -4- (the official newspaper of said City), more than ten (10) days prior to the date set for sale of such bonds; and WHEREAS, bids have been received pursuant to said notice and the City Council wishes to authorize the issuance of the bonds and award the sale thereof on the basis of the best bid received; Therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: RATIFICATION: 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 $891,000 bonds described in the preamble to this ordinance and calling an election therefor) and the action of the City officials in causing notice of sale of the $891,000 bonds described in the preamble hereof to be published in the Baytown Sun and the Texas Bond Reporter, are hereby and in all things ratified and confirmed, 4pOt -inn 7• NAME AMOUNT PURPOSE AND AUTHORIZATION: That the serial coupon bonds of the City of Baytown, Texas, to be known and designated as "CITY OF BAYTOWN, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1967", be issued in the principal amount of $891,000, for the purpose of constructing permanent street improvements and permanent drainage improvements in and for said City, under and in strict conformity with the Constitution and laws of the State of Texas, including particularly Chapters 1 and 7 of Title 22, Revised Civil Statutes of Texas, as amended, the Home -Rule Charter of -5- said City, and pursuant to an election held within said City on the 6th day of March, 1965, at which more than a majority of the duly qualified resident electors of said City who owned taxable property within said City and who had duly rendered the same for taxation, voting at said election, voted in favor of the issuance of said bonds (being a portion and the third installment of $4,064,000 General Obligation Bonds authorized at said election). DATE. BOND NUMBERS. DENOMINATION AND MATURITIES: That said bonds shall be dated May 15, 1967, shall be numbered consecutively from 1 to 178, both inclusive, shall be in the denomination of $5,000 each, except Bond No. 1 which shall be in the denomination of $6,000, aggregating $891,000, and shall become due and payable serially in their numerical order, without option of prior redemp- tion, on February 15 in each of the years 1968 to 1987, both inclusive, in the respective amounts shown in the following schedule, to -wit: M Bond Numbers Year of Amount (both incl.) Maturity Maturing Bond 1 - 6 1968 $313000 7 - 14 1969 40,000 15 - 22 1970 403000 23 - 3rd 1971 403000 31 - 38 1972 403000 39 - 46 1973 40,000 47 - 54 1974 40,000 55 - 62 1975 403000 63 - 70 1976 40,000 71 - 78 1977 405000 79 - 88 1978 50,000 89 - 98 1979 505000 99 - 108 1980 50,000 1C9 - 118 1981 505000 119 - 128 1982 50,000 129 - 138 1983 50,000 139 - 148 1984 50,000 149 -- 158 1985 505000 159 - 168 1986 503,000 169 - 178 1987 50,000 Section 4: 4.01 - INTEREST RATES AND INTEREST PAYMENT DATES: That said bonds shall bear interest from date until paid at the following rates per annum, respectively: to -wit: Bond Nos. 1 to 30 both inclusive, 4.15 %, Bond Nos. 31 to 6Z , both inclusive, ;3•S0 %, Bond Nos. to 10$ , both inclusive, �.rt �, and Bond Nos. 1041 to VAS , both inclusive, 4D, interest payable August 15, 1967, and semi - annually thereafter on February 15th and August 15th of each year until the principal sum is paid. 4.02 - MEDIUM AND PLACES 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 the Citizens National -7- Bank & Trust Co., Baytown, Texas, or, at the option of the holder, at the 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 such 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 coupons severally become due. Section 5: EXECUTION OF BONDS AND INTEREST COUPONS: That each of said bonds shall be signed by the Mayor and countersigned by the City Clerk of said City by their facsimile signatures, and the official seal of said City shall be impressed, or placed in facsimile, thereon, The interest coupons attached to said bonds shall be executed by the facsimile signatures of the Mayor and City Clerk. The registration certificate of the Comptroller of Public Accounts of the State of Texas, which certificate is to be printed on the back of each of said bonds as provided hereafter in Section 8 of this ordinance, shall be manually executed. Corrinn (� - FORM OF BONDS: That said bonds shall be in substantially the following form: No. $5,000 or $6,000* UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF HARRIS CITY OF BAYTOWN, TEXAS, GENERAL OBLIGATION BOND, SERIES 1967 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 February, 19 , the sum of FIVE THOUSAND DOLLARS ($5,000)* and to pay 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 August 15, 1967, and semi - annually thereafter on February 15th and August 15th of each year until the principal sum is paid 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 legal tender for the payment of debts due the United States of Amerca, at the Citizens National Bank & Trust Co., Baytown, Texas, or, at the option of the holder, 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 shall be payable only upon presentation and surrender of the interest coupons hereto attached as such coupons severally become due. *NOTE TO PRINTER: Bond No. 1 is in the denomination of $6,000. THE DATE OF THIS BOND, in conformity with the ordinance hereinafter mentioned, is May 15, 1967. THIS BOND IS ONE OF A SERIES OF 178 SERIAL COUPON BONDS of like tenor and effect except as to denomination, serial number, interest rate, and maturity, being numbered consecutively from 1 to 178, in the denomination of $5,000 each, except Bond No. 1, which is in the denomination of $6,000, aggregating $891,000, for the purpose of constructing permanent street improvements and permanent drainage improvements in and for said City, under and in strict conformity with the Constitution and laws of the State of Texas, including particularly Chapters 1 and 7 of Title 22, Revised Civil Statutes of Texas, as amended, the Home -Rule Charter of said City, and by authority of a vote 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, at an election held within said City on the 6th day of March, 1965, and pursuant to an ordinance duly adopted by the City Council of said City entitled "ORDINANCE AUTHORIZING THE ISSUANCE OF $891,000 GENERAL OBLIGATION BONDS, SERIES 1967; PRESCRIBING THE TERMS AND CONDITIONS THEREOF; APPROPRIATING THE SUM OF $891,000 OUT OF THE PROCEEDS OF SALE OF SUCH BONDS FOR VARIOUS PROJECTS; LEVYING TAXES FOR THE PAYMENT OF PRINCIPAL AND INTEREST THEREON; AWARDING THE SALE THEREOF; CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT; AND PROVIDING THAT THIS ORDINANCE SHALL TAKE EFFECT UPON AND AFTER ITS ADOPTION ", finally passed on the 25th day of May, 1967. (This bond is a portion and third installment of $4,064,000 General Obligation Bonds, -10- voted at the election hereinabove mentioned ©) 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 have been properly done and performed, and have happened in regular and in due time, form and manner as required by law; that due provision has been made for the payment of the principal of and interest on this bond, and the series of which it is a part, by the levy of a direct annual ad valorem tax upon all taxable property within said.City suf- ficient for said purposes; and that the total indebtedness of said City, including the entire series of bonds of which this is one, 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 official seal of said City to be impressed or placed in facsimile hereon, this bond to be signed by the Mayor and countersigned by the City Clerk by their facsimile signatures, and the annexed coupons also to be signed by said facsimile signatures of the Mayor and City Clerk, all as of the 15th day of May, 1967, COUNTERSIGNED: City Clerk, City of Baytown, Texas (SEAL) Mayor, City of Baytown, Texas -11- FORM OF INTEREST COUPONS: Section 7: That the interest coupons to be attached to said bonds shall be in substantially the following form: ON THE FIFTEENTH DAY OF t , 19 , the CITY OF BAYTOWN, in the County of Harris, State of Texas, PROMISES TO PAY TO BEARER, without exhange or collection charges, at the Citizens National Bank & Trust Co., Baytown, Texas, or, at the option of the holder, at the First City National Bank of Houston, Houston, 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 the City of Baytown, Texas, General Obligation Bond, Series 1967, bearing the number hereinafter specified, dated May 15, 1967, Bond No. City Clerk, City of Baytown, Texas (SEAL) Mayor, City of Baytown, Texas Section 8: REGISTRATION OF BONDS BY STATE COMPTROLLER AND FORM OF REGISTRATION CERTIFICATE: That each of said bonds shall be registered by the Comptroller 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 -12- bonds and is to be manually executed, 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; that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas; and that it is a valid and binding obligation 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, Comptroller of Public Accounts of the State of Texas Section 9: 9.01 - APPROPRIATION OF BOND PROCEEDS: That there is hereby appropriated out of the proceeds of sale of the bonds authorized by this ordinance: (a) The sum of $761,000 for the purpose of constructing permanent street improvements in and for said City; and (b) The sum of $130,000 for the purpose of constructing permanent drainage facilities in and for said City. It is estimated that the maximum cost of constructing permanent street improvements will be $761,000, and that the maximum cost of constructing permanent drainage facilities in and for said -13- City will be $130,000; consequently, there is no necessity for any down payments and no such down payments are made. 9.02 - APPLICATION OF BOND PROCEEDS: That $761,000 of the proceeds of sale of the bonds authorized by this ordinance shall be used and expended for the purpose of constructing permanent street improvements in and for the City of Baytown, and $130,000 of the proceeds of sale shall be used for the purpose of constructing permanent drainage facilities in and for the City of Baytown, as provided in the ordinance adopted on the 11th day of February, 1965, calling the bond election which was held in said City on the 6th day of March, 1965. Section 10: INTEREST AND SINKING FUND - TAX LEVY: That there is hereby created a special fund to be designated "CITY OF BAYTOWN, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1967, INTEREST AND SINKING FUND ", and all taxes levied, assessed and collected for and on account of the bonds authorized by this order shall, as collected, 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 annually assessed and collected in due 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 (2q) of the principal amount of said bonds, or of not less than the amount required to pay the principal -14- of said bonds payable out of said tax, whichever is greater, full allowance being made for delinquencies and costs of collection; and said taxes when collected shall be applied to the payment of the principal and interest on said bonds and to no other purpose. To pay the interest falling due on August 15, 1957, on said bonds, there is hereby appropriated out of surplus funds of the City presently on hand and not otherwise appropriated or o� encumbered or allocated, the sum of $ I p Oo into the interest and sinking fund hereby created, and said sum shall be used for the payment of said interest and for no other purpose. Section 11: APPROVAL AND REGISTRATION OF BONDS BY STATE OFFICERS: That it shall be the duty of the Mayor of said City, or someone acting under authority of said Mayor, to submit the record of said bonds, and the bonds, to the Attorney General of the State of Texas for examination and approval, and thereafter to have such bonds registered by the Comptroller of Public Accounts of the State of Texas. Section 12: THE 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 bid submitted by X ti''. -.n 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 $ 1' , is -15- the best bid received, and the sale of sa -Ad. fonds to the named bidder at the stated price, subject to the unqualified approving opinion as to the legality of said bonds, of the Attorney General of the State of 'Texas, and Vinson, Elkins, Weems & Searls, Houston, Texas, market attorneys, is hereby authorized, approved, ratified and confirmed_ When said bonds have been approved by the said Attorney General and registered by the Comptroller of Public Accounts of the State of Texas, they shall be delivered to the named purchaser upon receipt of the full purchase price. Section 13: DUTIES OF CITY OFFICIALS: That the Mayor and City Clerk of said City and other appropriate officials 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 14: EFFECTIVE DATE OF ORDINANCE: That this ordinance shall take effect and be in full force and effect upon and after its adoption, and it is so ordained. PASSED AND APPROVED this 25th day of May, 196 "7. ATTEST: City Clerk, City of Baytown, Texas (SEAL) Mayor, City -16- C� aytow,-Y, ' yexas