Loading...
Ordinance No. 869ORDINANCE NO. 869 ORDINANCE AUTHORIZING THE .ISSUANCE OF $425,000 WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS; PRESCRIBING THE TERMS AND PROVISIONS THEREOF; APPROPRIATING THE SUM OF $425,000 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 THE STATE OF TEXAS COUNTY OF HARRIS The City Council of the City of Baytown, Texas, conveyed 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 A. M. Braswell Mayor Councilman Glen Walker Councilman Don M. Hullum Councilman Lamar Kelley Edna Oliver Councilman City Clerk and the following member(s) absent, to -wit : ��r,�` .,� ,.:.,uQ , when, among other business, the following was transacted: The Mayor introduced an ordinance which was read in full. Councilman E A_ }r�. _. _) 4" made a motion that the ordinance be adopted as read. Councilman seconded the motion for adoption of the ordinance. The motion, carrying with it the adop- tion of the ordinance, prevailed by the following vote: AYES: Councilmen Braswell, Ba-1-1, Walker, 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 $425,000 WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS; PRESCRIBING THE TERMS AND PROVISIONS THEREOF; APPROPRIATING THE SUM OF $425,000 OUT OF THE PROCEEDS OF SALE FOR IMPROVEMENTS TO THE CITY'S SANITARY SEWER SYSTEM; MAKING PRO- VISION FOR THE PAYMENT OF THE PRINCIPAL THEREOF AND INTEREST THEREON; AWARDING THE SALE THEREOF; CONTAINING OTHER PROVISIONS RELATING TO THE SUB- JECT; 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 fol- lowing revenue bonds: 1. CITY OF BAYTOWN, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1958, dated February 15, 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 Registra- tion No. 32265, originally issued in the principal amount of $1,000,000, of which $975,000 in princi- pal amount presently remains outstanding and unpaid; and 2. CITY OF BAYTOWN, TEXAS, WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 1966, dated February 15, 1966, approved by the Attorney General of the State of Texas on the 28th day of March, 1966, and registered by the Comptroller of Public Accounts of Texas on the same date under Registration No. 37307, originally issued in the principal amount of $750.000, all of which presently remain 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 -3- City of Baytown, Texas; and WHEREAS, it is expressly provided in the proceedings authorizing said outstanding bonds that the City reserves the right to issue additional parity revenue bonds and such additional parity revenue 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 6th day of March, 1965, more than a majority of the duly qualified resident electors of said City who owned tax - alile 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 sani- tary sewer system; said bonds to be payable from the net reve- nues 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 (5f) per annum; and WHEREAS, an election was called and notice thereof was given and said election was held in accordance and in conformity with 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 -4- WHEREAS, the City Council has determined, and hereby affirmatively determines and declares, that it would be to the best interest of the City to issue and sell at this time a second and final installment of $425,000 bonds out of said total voted bonds; Therefore TEXAS: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, RPr,ti nn l 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 $425,000 revenue bonds described in the preamble to this order and calling an election therefor), and the action of the City officials in causing notice of sale of said $425,000 bonds in the Baytown Sun and in the Texas Bond Reporter is hereby in all things ratified and confirmed. SPrt.� nn P NAME, AMOUNT, PURPOSE AND AUTHORIZATION: That the serial coupon revenue bonds of the City of Baytown, Texas, be issued in the principal amount of $425,000, to be known and designated as "CITY OF BAYTOWN, TEXAS, WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 196711, for the purpose of improving, en- larging, 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 1111 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 property within said City and who had duly rendered the same for taxation, voting at an election held within said City on the 6th day of -5- March, 1965 (the bonds hereby authorized constituting a second and final installment out of a total of $1,175,000 revenue bonds authorized at said election). Section 3: DATE, NUMBERS, DENOMINATION AND MATURITIES: That said revenue bonds shal1 'c-e dated May 15, 1967, shall be numbered con- secutively from l to 85, both inclusive, shall be in the denomi- nation of $5,000 each, aggregating $425,000, 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 1970 to 1986, both inclusive, in the respective amounts shown in the Following schedule, to -wit: Bond Numbers Year of Amount (both Incl.) Maturity Maturi 1 - 5 1970 $25,000 6 - 10 1971 25,000 11 - 15 1972 25,000 16 - 20 1973 25,000 21 - 25 1974 25,000 26 - 30 1975 25,000 31 - 35 1976 25,000 36 - 4o 1977 25,000 41 - 45 1978 25,000 46 - 50 1979 25,000 51 - 55 1980 25,000 56 - 6a 1981 25,000 61 - 65 1982 25,000 66 - 70 1983 25,000 71 - 75 1984 25,000 76 - 8o 1985 25,000 81 - 85 1986 25,000 Section 4: 4.ol - INTEREST RATES AND INTEREST PAYMENT DATES: That said bonds shall bear '_nterest per annum at the following rates, respectively: Bonds Nos. 1 to L2D, both inclusive,, Bonds Nos. bi toll, both inclusive,4.0'� Bonds Nos.I(v to %,�:, both inclusive, and Bonds Nos. _ to _, both inclusive, ____JO, -6- interest payable November 15, 1967, and semi - annually thereafter on May 15th and November 15th in each year until the principal sum is paid. 4.02 - 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 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 said bonds shall be pay- able 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: 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 also 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 order shall be manually executed. IvC FORM OF BONDS: lowing form: No. Section 6• That said bonds shall be in substantially the fol-- $5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF HARRIS CITY OF BAYTOWN, TEXAS WATERWORKS AND SANITARY SEWER SYSTEM REVENUE 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 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, 1967, and semi - annually thereafter on May 15th and November 15th of each year until the principal sum hereof shall have been 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 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 shall be payable only upon presentation and sur- render 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 MAY 15, 1967• THIS BOND IS ONE OF A SERIES OF 85 SERIAL SPECIAL OBLIGA- TION BONDS of like tenor and effect, except as to serial number, interest rate and maturity, being numbered consecutively from 1 to 85, both inclusive, in the denomination of $5,000 each, aggregating $425,000 (said bonds constituting a second and final 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 sys- tem, under and in strict conformity with the Constitution and laws of the State of Texas, particularly Articles 1111 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 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 lawfully adopted by the City Council of said City, entitled "ORDINANCE AUTHORIZ- ING THE ISSUANCE OF $425,000 WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS; PRESCRIBING THE TERMS AND PROVISIONS THEREOF; APPROPRIATING THE SUM OF $425,000 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 m May 25, 1967, 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 con- clusively 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 and claims of owner- ship 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, the outstanding City of Baytown, Texas, Waterworks and Sewer System Bonds, Series 1958, dated February 15, 1958, and the outstanding City of Baytown, Texas, Waterworks and Sanitary Sewer System Revenue Bonds, Series 1966, dated February 15, 1966 (said outstanding bonds being here- inafter referred to as the "Outstanding Bonds ") solely from the -10- 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 additional bonds payable from the net revenues of said waterworks and sani- tary sewer system, and such additional bonds may be on a parity in all respects with the bonds of this issue and the Outstanding Bonds, but such additional parity bonds may be issued only pur- suant to and subject to the restrictions, covenants, and limita- tions contained in the ordinance authorizing 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 acceptance 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 provi- sion has been made for the payment of the principal of and inter- est on this bond and the other bonds of the series of which it is a part and the Outstanding Bonds by irrevocably pledging the net -11- revenues of said waterworks and sanitary sewer system; and that the issuance of this series of bonds does not exceed any Constitu- ticnal 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 impressed or placed in facsimile hereon, this bond to be signed by the Mayor of said City and countersigned by the City Clerk, by their facsimile signatures, and the interest coupons hereto annexed also to be executed by the facsimile sig- natures of said Mayor and City Clerk, all as of the 15th day of May, 1967. Mayor, City of Baytown, Texas COUNTERSIGNED: City Clerk, 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 FIFTEENTH 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 01 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 �ht special fund specified in the bond to which this coupon appertains, said sure tieing interest due that date on City of Baytown, Texas, -12- Waterworks and Sanitary Sewer System Revenue Bond, Series 1967, bearing the number hereinafter specified, dated May 15, 1967. 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. City Clerk Section 8: Mayor REGISTRATION OF BONDS BY STATE COMPTROLLER AND FORM OF REGISTRA- TION 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 on 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. -13- WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas, Comptroller of Public Accounts of the State of Texas Section 9: .Ol - APPROPRIATION OF BOND PROCEEDS: That there is hereby appropriated out of the proceeds of sale of the bonds authorized by this ordinance the sum of $425,000 for the purpose of improv- ing, 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 sys- tem will be $425,000; consequently, there is no necessity for any down payment and no such down payment is made. 9.02 - 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 sys- tem, as outlined in the ordinance adopted February 11, 1965, 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 appro- priate, the City Council thereof. (b) System - the waterworks and sanitary sewer system of the City, including all present and future extensions, replace- ments, and improvements thereto. (c) Net Revenues - the gross revenues derived from the -14- operation of the system less the reasonable expenses of opera- tion and maintenance of said system, including all salaries, labor, materials, interest and such repairs and extensions as in the judgment of the governing body of the City are necessary to keep the plant or utility in operation and render adequate service to the City and the inhabitants thereof, or such as might be neces- sary to meet some physical accident or condition which would other- wise impair the original security. (d) Bonds -- the $425,000 Series 1967 revenue bonds au- thorized by this ordinance. (e) Outstanding Bonds - (1) the outstanding bonds of the City's $1,000,000 Waterworks and Sewer System Revenue Bonds, Series 1958, dated February 15, 1958, and (2) the outstanding bonds of the City's $750,000 Waterworks and Sanitary Sewer System Revenue Bonds, Series 1966, dated February 15, 1966. (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, all of which have now been retired. (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) 1966 Ordinance -- the ordinance adopted by the City on the 24th day of February, 1966, authorizing the issuance of $750,000 Waterworks and Sanitary Sewer System Revenue Bonds, Series 1966. (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. (j) Bond Fund - the interest and sinking fund and reserve account for the Outstanding Bonds, which was established in Section 9.02(b) of the 1957 Ordinance. -15- W Bond Reserve Account - the portion of the Bond Fund cre- ated as a reserve for the Outstanding Bonds by Section 9.02(b) of the 1957 Ordinance. (1) Contingencies Fund - the special fund for contingencies, which was established in Section 9.02(c) of the 1957 Ordinance. Section 11: ADOPTION OF PROVISIONS OF 1957 ORDINANCE: That the Bonds author- ized by this ordinance shall be issued upon the terms and conditions contained in Sections9 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. Section 12: 12.01 - ADDITIONAL PAYMENTS INTO THE BOND FUND: After the payment of all maintenance and operation expenses of the System as provided in Section 9.02(a) of the 1957 Ordinance.and in addition to the payments into the Bond Fund required by the 1958 Ordinance and the 1966 Ordinance and at the same time payments are made into the Bond Fund under the provisions of the 1957 Ordinance, the 1958 Ordinance and the 1966 Ordinance, the City, from moneys 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 the Bonds. In addition to such payments and in addition to the payments into the Bond Reserve Account required by the 1958 Ordinance and the 1966 Ordinance, the City shall pay into the Bond Fund, from the System Fund, in each year, 20% of the amount required to meet interest and principal payments falling due on or before the next maturity date of the -16- Bonds until such time as there is in the Bond Fund (including the Bond Reserve Account) an amount sufficient to meet the interest and principal payments falling due on or before the next maturity date of the Bonds and the interest and principal payment on the Bonds for one year thereafter. Such additional payments shall be made into the Bond Reserve Account established by the 1957 Ordinance. The amount required to be paid into the Bond Fund in each year shall be in substantially equal monthly payments. If the revenues of the System in any month, after deduction for operation and main- tenance, are insufficient to make the required payments into the Bond Fund, including the Bond Reserve Account, then the amount of any deficiency in such payment shall be added to the amount otherwise required to be paid into �he 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 pay- ment of current interest and principal on the Bonds, until there has been accumulated in the Bond Reserve Account, as a reserve, an amount sufficient to service the Bonds for one year. The moneys required to be paid into the Bond Reserve Account hereunder shall be used for the purpose of preventing a default in the payment of principal and interest on the Bonds, All money so used from the Bond Reserve Account shall be promptly restored from the first available revenues received after such use. The moneys required to be paid into the Bond Fund (including the Bond Reserve Account) hereunder shall be used solely for the purpose of paying interest on and principal of the Bonds until all the Bonds have been retired. When there has been accumulated in the Bond Fund, for the benefit of the Bonds, a sum sufficient to pay the principal and interest to final maturity date on all of the Bonds then outstanding, payments required hereunder may be discontinued, but they shall be resumed, if necessary for any reason, to prevent default on the Bonds. -17- 12.02 - SURPLUS: Any funds remaining in the System Fund, after pro- vision has been made for the reasonable cost of operating and main- taining the System, and after the required payments have been made into the Bond Fund and Contingencies Fund may be used by the City for any lawful purpose. 12.03 = CONTINGENCIES FUND: The City hereby covenants and agrees to maintain the Contingencies Fund as provided in the 1957 Ordi- nance. As long as the City maintains a balance of $50,000 in the Contingencies Fund as required by the 1957 Ordinance then, insofar as the Bonds are concerned, no additional payments need be made into the Contingencies Fund. If the balance in the Contingencies Fund is ever reduced to an amount less than $50,000, payments into the Contingencies Fund shall be resumed and maintained as provided in the 1957 Ordinance, Moneys in the Contingencies Fund shall be used only (1) to pay unusual maintenance and operation expenses, as defined in 9.02(x) of the :957 Ordinance, for which there are no other moneys available, and (2) to prevent a default in the payment of principal and interest on the Outstanding Bonds, the Bonds or Additional Bonds in the event there are otherwise insufficient moneys for such purpose. 12.04 - APPLICATION OF 1957 ORDINANCE: That, except as provided herein, all the provisions of the 1957 Ordinance relating to the payment or deposits of moneys into the Bond Fund and the Bond Reserve Account and to the maintenance and investment of the Bond Fund, including the Bond Reserve Account, shall apply to payments or deposits required by this Ordinance and to the maintenance and investment of the Bond Fund, including the Bond Reserve Account. 12.05 - PARITY OF BONDS AND OUTSTANDING BONDS: That the Bands and the Outstanding Bonds are, and shall be, in all respects on a parity and of equal dignity with one another. i Section 13: ADDITIONAL BONDS: That, in addition to inferior lien bonds au- thorized by Chapters 249 and 250, Acts of the 51st Legislature of Texas, 1949, as amended, the City reserves the right to issue Additional Parity Bonds, in one or more installments, 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 Additional Bonds may in all respects be of equal dignity with the Outstanding Bonds and the Bonds, It is expressly provided, however, that 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 the 1958 Ordinance, the 1966 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 Additional Bonds is adopted), as certified by an independent public account- ant or firm of independent public accountants, were equal to at least one and one -half (1 -1/2) times the requirements for the payment of prin- cipal 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 require- ments are greatest; and (c) The Bonds then proposed to be issued are made -19- to mature on May 15 in each of the years in which they are scheduled to mature. The term "net revenues" as used herezn 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 tc 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, 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. SALE OF BONDS Section 10: 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 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 $ C , 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 to the legality of said Bonds, of the Attorney General of the State of Texas and Vinson, Elkins, Weems & Searls, Houston, -20- 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 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 convenient to carry out the provisions of this ordinance. Section 18: EFFECTIVE DATE OF ORDINANCE: That this ordinance shall take effect from and after its adoption, AND IT IS SO ORDAINED. PASSED AND APPROVED this 25th day of May, 1967. ATTEST: l City Clerk, City of Baytown, Texas (SEAL) Mayor, C' of Baytown, as -21-