Ordinance No. 1,090ORDINANCE NO. 1090
ORDINANCE AUTHORIZING ISSUANCE OF
$6,500,000 GENERAL - OBLIGATION BONDS, SERIES 1971;
APPROPRIATING $6,500,000 OF PROCEEDS OF SALE THEREOF
FOR VARIOUS PROJECTS; AND CONTAINING OTHER PROVISIONS
RELATING THERETO
THE STATE OF TEXAS §
COUNTIES OF HARRIS & CHAMBERS §
CITY OF BAYTOWN §
WHEREAS, the bonds hereinafter authorized were duly
and favorably voted, as required by the Constitution and laws
of the State of Texas, at an election held in the City on
the 17th day of March, 1970; and
WHEREAS, the City Council now deems it advisable to
issue, sell, and deliver $6,500,000 bonds for the purposes
shown in the following schedule as a portion and the first
installment of bonds out of said total authorized bonds:
Purpose
Date Amount
Authorized Authorized
Amount
Amount
Heretofore
Being
Issued
Issued
Unissued
Balance
San. Sew. Sys.
3 -17 -70
$1,705,000 $
-0-
$1,705,000
$ -0-
Waterworks Sys.
3 -17 -70
2,010,000
-0-
2,010,000
-0-
Streets
3 -17 -70
3,715,000
-0-
1,435,000
2,280,000
Park
3 -17 -70
920,000
-0-
600,000
320,000
Police Bldg.
3 -17 -70
500,000
-0-
500,000
-0-
Fire Station
3 -17 -70
50,000
-0-
50,000
-0-
Public Works
3 -17 -70
200,000
-0-
200,000
$6,500,000
-0-
$2,600,000
-0-
$9,100,000 $
WHEREAS, the City Council has determined that the remain-
ing'$2,600,000 authorized bonds may be issued, sold, and deliv-
ered at a later date; and
WHEREAS, the City Council has caused a notice of sale of
such bonds to be published in the TEXAS BOND REPORTER which is
a publication carrying municipal -bond notices and devoted
primarily to financial news and in the BAYTOWN SUN which is
the official newspaper of the City, said notice having been
published in each said publication more than ten days prior
to the date set for the sale of said bonds; and
WHEREAS, bids have been received pursuant to said pub-
lications of said notice and the City Council desires to
authorize the issuance of said 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 THAT:
Section 1(a). The ordinance heretofore adopted by the
City Council on the 26th day of February, 1970, authorizing
the issuance of the bonds described in the preamble of this
ordinance and calling an election therefor is hereby in all
things ratified and confirmed.
Section 1(b). All the matters and facts recited in
the preamble hereof are hereby officially found to be true
and correct.
Section 2. The City's negotiable, serial, coupon bonds
to be designated CITY OF BAYTOWN, TEXAS, GENERAL - OBLIGATION
BONDS, SERIES 1971, are hereby authorized to be issued and
delivered in the principal amount of $6,500,000 for the fol-
lowing purposes:
1. $1,705,000 for constructing improve-
ments to the City's sanitary sewer system
2. $2,010,000 for constructing improve-
ments to the City's waterworks system
-2-
3. $1,435,000 for constructing permanent
street improvements
4. $600,000 for purchasing and /or improv-
ing lands for park purposes
5. $500,000 for constructing and perman-
ently equipping a police administration
building
6. $50,000 for constructing improvements
to and permanently equipping fire -
station buildings
7. $200,000 for constructing, improving,
and permanently equipping buildings and
related permanent improvements for
public -works purposes, including a new
central public -works building and the
existing automotive repair shop
Band on '�. Said bonds shall be dated April 15, 1971,
shall be numbered consecutively from 1 through 1,300, shall be
in the denomination of $5,000 each, and shall mature serially
on February 15 of each of the years, and in the amounts,
respectively, as set forth in the following schedule:
YEAR
AMOUNT
YEAR
AMOUNT
1972
$125,000
1983
$250,000
1973
125,000
1984
300,000
1974
125,000
1985
300,000
1975
125,000
1986
300,000
1976
125,000
1987
500,000
X977
125,000
1988
500,000
1978
250,000
1989
550,000
1979
250,000
1990
600,000
1980
250,000
1991
6003000
1981
250,000
1992
600,000
1982
250,000
Said bonds may be redeemed prior to their scheduled maturi-
ties, at the option of the City, on the dates stated and in
the manner provided in the FORM OF BOND set forth in this
ordinance.
-3-
4Poi-inn 4. Said bonds shall bear interest per annum
at the following rates, respectively, to -wit:
Bonds
maturing
1972
through
19_, %
Bonds
maturing
19—
through
19_,
Bonds
maturing
19-
through
19_,
Bonds
maturing
19-
through
19 —, �
Bonds
maturing
19—
through
19_,
Bonds
maturing
19�
through
19_,
evidenced by interest coupons which shall appertain to said
bonds and which shall be payable on the dates indicated in
the FORM OF BOND set forth in this ordinance.
Section 5. Said bonds, and the interest coupons apper-
taining thereto, shall be payable, shall have the character-
istics, and shall be signed and executed (and said bonds shall
be sealed), all as provided and in the manner indicated in
the FORM OF BOND set forth in this ordinance.
Section 6. The form of said bonds, including the form
of registration certificate of the Comptroller of Public Accounts
of the State of Texas to be printed and endorsed on each of
said bonds, and the form of the aforesaid interest coupons
which shall appertain and be attached initially to each of
said bonds, shall be, respectively, substantially as follows:
NO.
FORM OF BOND:
$5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTIES OF HARRIS AND CHAMBERS
CITY OF BAYTOWN, TEXAS
GENERAL - OBLIGATION BOND
SERIES 1971
ON FEBRUARY 15, , the CITY OF BAYTOWN, in the
Counties of Harris and Chambers, in the State of Texas, prom-
ises to pay to bearer the principal amount of
FIVE THOUSAND DOLLARS
and to pay interest thereon, from the date hereof, at the
rate of % per annum, evidenced by interest coupons pay-
able February 15, 1972, and semiannually thereafter on each
August 15 and February 15 while this bond is outstanding.
The principal of this bond and the interest coupons apper-
taining hereto shall be payable to bearer, in lawful money
of the United States of America, without exchange or col-
lection charges to the bearer, upon presentation and sur-
render of this bond or proper interest coupon 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, which banks shall be the paying agents for
this series of bonds.
THIS BOND is one of a series of negotiable, serial,
coupon bonds, dated April 15, 1971, issued in the principal
-5-
amount of $6,500,000 for the following purposes:
1. $1,705,000 for constructing improve-
ments to the City's sanitary sewer system
2. $2,010,000 for constructing improve-
ments to the City's waterworks system
3• $1,435,000 for constructing permanent
street improvements
4. $600,000 for purchasing and /or improv-
ing lands for park purposes
5. $500,000 for constructing and perman-
ently equipping a police administration
building
6. $50,000 for constructing improvements
to and permanently equipping fire -
station buildings
7. $200,000 for constructing, improving,
and permanently equipping buildings and
related permanent improvements for
public -works purposes, including a new
central public -works building and the
existing automotive repair shop
in accordance with Chapters 1 and 7 of Title 22, Revised
Civil Statutes of Texas, as amended, and the home -rule charter
of the City, and pursuant to an election held within the City
on the 17th day of March, 1970, and authorized pursuant to an
ordinance duly adopted by the City Council of the City
entitled ORDINANCE AUTHORIZING ISSUANCE OF $6,500,000 GENERAL -
OBLIGATION BONDS, SERIES 1971; APPROPRIATING $6,500,000 OF
PROCEEDS OF SALE THEREOF FOR VARIOUS PROJECTS; AND CONTAINING
OTHER PROVISIONS RELATING THERETO and finally passed on the
12th day of April, 1971, this bond being one of a series of
bonds which constitutes a portion and the first installment of
$9,100,000 general - obligation bonds voted at the aforesaid
election.
ON FEBRUARY 15, 1986, OR ON ANY INTEREST- PAYMENT DATE
THEREAFTER, the outstanding bonds of this series may be redeemed
prior to their scheduled maturities, at the option of the City,
IN WHOLE, OR IN PART IN INVERSE NUMERICAL ORDER, for the prin-
cipal amount thereof and accrued interest thereon to the date
fixed for any such redemption. At least thirty days prior
to the date fixed for any such redemption, the City shall
cause a written notice of such redemption to be mailed to
the banks at which said bonds are payable and published at
least once in a financial publication published in the City
of New York, New York. By the date fixed for any such redemp-
tion, due provision shall be made with the paying agents for
the payment of the required redemption price. If such writ-
ten notice of redemption is published and if due provision
for such payment is made, all as provided above, the bonds
which are to be so redeemed thereby automatically shall be
redeemed prior to their scheduled maturities; and they shall
not be regarded as being outstanding except for the purpose
of being paid by the paying agents with the funds so provided
for such payment.
IT IS HEREBY certified, recited, and covenanted that
this bond has been duly and validly voted, authorized, issued,
and delivered; that all acts, conditions, and things required
or proper to be performed, exist, and be done precedent to
or in the issuance and delivery of this bond, have been per-
formed, existed, and been done in accordance with law; that
this bond is a general obligation of the City, issued on the
-7-
full faith and credit thereof; and that annual ad valorem
taxes sufficient to provide for the payment of the interest
on and principal of this bond, as such interest comes due
and such principal matures, have been levied and ordered to
be levied against all taxable property in the City and have
been pledged irrevocably for such payment within the limits
prescribed by law.
IN WITNESS WHEREOF, this bond and the interest coupons
appertaining hereto have been signed with the facsimile signa-
ture of the Mayor of the City and countersigned with the fac-
simile signature of the City Clerk of the City, and the offi-
cial seal of the City has been duly impressed, or placed in
facsimile, on this bond.
COUNTERSIGNED:
(SEAL)
XXXXXXXXXXXX
City Clerk
XXXXXXXXXXXX
Mayor
FORM OF REGISTRATION CERTIFICATE:
COMPTROLLER'S REGISTRATION CERTIFICATE§ REGISTER NO.
I hereby certify that this bond has been examined,
certified as to validity, and approved by the Attorney General
of the State of Texas and that this bond has been registered
by the Comptroller of Public Accounts of the State of Texas.
(SEAL)
WITNESS my signature and seal this
xxxxxxxxxxxx
Comptroller of Public Accounts of
the State of Texas
M
NO.
FORM OF INTEREST COUPON:
ON 15, 19_,
the CITY OF BAYTOWN, in the Counties of Harris and Chambers,
State of Texas, promises to pay to bearer the amount shown
on this interest coupon, in lawful money of the United States
of America, without exchange or collection charges to the
bearer, unless due provision has been made for the redemp-
tion prior to maturity of the bond to which this coupon apper-
tains, upon presentation and surrender of this interest coupon
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, said amount being interest due
that day on the bond bearing the number hereinafter desig-
nated of that issue of CITY OF BAYTOWN, TEXAS, GENERAL- -
OBLIGATION BONDS, SERIES 1971, dated April 15, 1971. Bond
No.
xxxxxxxxxxxx
City Clerk
xxxxxxxxxxxx
Mayor
Section 7. A special fund or account, to be designated
the "City of Baytown, Texas, General- Obligation Bonds, Series
1971, Interest and Sinking Fund," is hereby created and shall
be established and maintained by the City at an official deposi-
tory bank of the City. The Interest and Sinking Fund shall
be kept separate and apart from all other funds and accounts
of the City and shall be used only for paying the interest
Men
on and principal of said bonds. All ad valorem taxes levied
and collected for and on account of said bonds shall be deposited,
as collected, to the credit of the Interest and Sinking Fund.
During each year while any of said bonds or interest coupons
appertaining thereto are outstanding and unpaid, the City
Council of the City shall compute and ascertain a rate and
amount of ad valorem tax which will be sufficient to raise
and produce the money required to pair the interest on said.
bonds as such interest comes due and to provide and mainta.ln
a sinking fund adequate to pay the principal of such bona.",
as such principal m, ;tunes b"t never le-,s than ?;; of
naI principal amount of saj.0 bona., a.s a. sinnj._ing, Ptind. earl,
year; and said tax shall be based on the latest; approves
rolls of the Cit ",1, with full allowance being macro for t�):z
delinquencies and the cost of tax collection. Said rate a.rica.
amount of ad valorem tax are hereby levied, and are hereby
ordered to be levied, against all taxable property in the C1ty
for each year while any of said bonds or interest coupons
appertaining thereto are outstanding and unpaid; and said tax
shall be assessed and collected each such year and deposited
to the credit of the aforesaid Interest and Sinking Fund.
Said ad valorem taxes sufficient to provide for the payment of
the interest on and principal of said bonds, as such interest
comes due and such principal matures, are hereby pledged irrevo-
cably for such payment within the limits prescribed by lava.
Section S. There is hereby appropriated out of the pro_.
seeds of sale of the bonds authorized by this ordinance the
following sums for the following indicated purposes, respectively:
_10-
1. $1,705,000 for constructing improve-
ments to the City's sanitary sewer system
2. $2,010,000 for constructing improve-
ments to the City's waterworks system
3. $1,2435,000 for constructing permanent
street improvements
4. $600,000 for purchasing and /or improv-
ing lands for park purposes
5. $500,000 for constructing; and perman-
ently equi.ppinF; a police administration
bui.ld.ing
6. $50,000 for constructing; improvements
to ane permanently equipping fir( -
station buildings
7. $200,000 for constructing, improving,
and permanently equipping buildings and
related permanent improvements for
public -works purposes, including a new
central public -works building and the
existing automotive repair shop
It is hereby estimated that the maximum cost, respectively,
for each of the aforesaid projects will not exceed the amount
named above for each such project, respectively; and there is
no necessity for any down payment on these projects; and no
such down payment is hereby ordered to be made. It is hereby
officially found and determined that the probable period of
usefulness of each of the aforesaid projects is forty years.
Section 9. Out of the proceeds of sale of the bonds
authorized by this ordinance the following sums are hereby
ordered to be used and expended for the following indicated
purposes, respectively:
1. $1,705,000 for constructing improve-
ments to the City's sanitary sewer system
2. $2,010,000 for constructing improve-
ments to the City's waterworks system
-11-
3. $1,435,000 for constructing permanent
street improvements
4. $600,000 for purchasing and /or Improv-
ing lands for park purposes
5. $500,000 for constructing and perman-
ently equipping a police administration
building
6. $50,000 for constructing improvements
to and permanently equipping fire -
station buildings
7. $200,000 for constructing, improving,
and permanently equipping buildings and
related permanent improvements for
public -works purposes, including a new
central public -works building and the
existing automotive repair shop
as provided in the ordinance Adopted on the 26th day of
February, 1970, calling the bond election which was held in
the City on the 17th day of March, 1970.
Section 10. The City hereby specially covenants
and agrees with the original purchasers of the SERIES 1971
bonds (the "Bonds ") and with the owners or holders from time
to time of the Bonds that;
1. The City will promptly proceed to
utilize the proceeds of the sale of the
Bonds (other than accrued interest to date
of delivery and any premium) for the pur-
pose, as stated on the face of each of
said Bonds, for which the Bonds are to be
issued.
2. No portion of the Bonds is issued as a
part of an issue, all or a major portion
of the proceeds of which are reasonably
expected to be used directly or indirectly:
(a) to acquire securities (within the
meaning of Section 165[g][2][A] or
[B] of the Internal Revenue Code)
or obligations (other than the obliga-
tions described in Section 103[a][1]
-12-
of the Internal Revenue Code), except
for a temporary period to the extent
permitted by Section 103(d)(4)(A) of
the Internal Revenue Code, which
may be reasonably expected at the
time of the issuance of such
issue of Bonds to produce a yield
over the term of the issue of
Bonds which is materially higher
(taking into account any discount
or premium) than the yield on the
issue of Bonds or
(b) to replace funds which were used
directly or indirectly to acquire
securities or obligations described
in subparagraph (a) above.
3. The City will take such action as may be
necessary in accordance with regulations pre-
scribed from time to time by the Secretary of
the Treasury or his delegate to carry out the
purposes of Section 103(d) of the Internal,
Revenue Code so that no portion of the issue
of Bonds shall'be classified as an "arbitrage
bond" within the meaning of Section 103(d) of
the Internal Revenue Code.
4. The City will not permit to be deposited
to the credit of any of the funds herein men-
tioned or applied to the payment of the princi-
pal of or interest on the Bonds any proceeds
from any grapt, donation, or income received
from the United States Government, whether
pursuant to agreement or otherwise, if such
deposit or application would result in inter-
est payable on said Bonds being includable
in whole or in part in gross income for Federal
income taxes.
Section 11. The Mayor of said City is hereby authorized
to have control of said bonds and all necessary records and
proceedings pertaining to said bonds pending their delivery
and their investigation, examination, and approval by the
Attorney General of the State of Texas and their registra-
tion by the Comptroller of Public Accounts of the State of
Texas. Upon registration of said bonds, the Comptroller of
-13-
Public Accounts (or a deputy designated in writing to act
for the Comptroller) shall manually sign the Comptroller's
Registration Certificate prescribed herein to be printed and
endorsed on each bond; and the seal of the Comptroller shall
be impressed, or placed in facsimile, on each of said bonds.
Section 12. Said bonds are hereby sold and shall be
delivered to
for the par value thereof and accrued interest thereon to
date of delivery, plus a premium of $ , subject to
the unqualified approving opinions, as to the legality of
said bonds, of the Attorney General of the State of Texas
and of Vinson, Elkins, Sears & Smith, Houston, Texas, mar-
ket attorneys; and it is hereby officially found, determined,
and declared that said bonds are sold on the best terms and
for the best price possible.
Section 13. The Mayor and all other appropriate office
cers of the CITY OF BAYTOWN are hereby authorized and directed
to do any and all things necessary or convenient to carry out
the provisions of this ordinance.
Section 14. This ordinance was read once by the City
Council and shall take effect immediately.
Section 15. It is hereby officially found and deter-
mined that the need of the City for such financing creates
an emergency and an urgent public necessity for the holding,
-14�
at the scheduled time, of the meeting of the City Council at
which this ordinance is adopted and for the adoption of this
ordinance; and the NOTICE OF MEETING relating to said meet-
ing and heretofore posted by the City Clerk, and the post-
ing thereof, are hereby authorized, approved, adopted, rati-
fied, and confirmed.
PASSED, AUTHENTICATED, AND APPROVED this 12th day of
April, 1971.
ATTEST:
ea�J C_U��
City Clerk
CITY OF BAYTOWN, TEXAS
(SEAL)
r Z"
Mayor
CITY OF BAYTOWN, TEXAS
_l�_
CERTIFICATE FOR
ORDINANCE AUTHORIZING ISSUANCE OF
$6,500,000 GENERAL - OBLIGATION BONDS, SERIES 1971;
APPROPRIATING $6,500,000 OF PROCEEDS OF SALE THEREOF
FOR VARIOUS PROJECTS; AND CONTAINING OTHER PROVISIONS
RFT,ATTNG THERETO
THE STATE OF TEXAS §
COUNTIES OF HARRIS & CHAMBERS §
CITY OF BAYTOWN §
We, the undersigned officers of the City Council of the CITY OF
BAYTOWN, hereby certify as follows:
1. The City Council of the CITY OF BAYTOWN, convened in
MEETING, ON THE 12TH DAY OF APRIL, 1971, in the City Hall within id
City; and the roll was called of the duly constituted officers and
members of said Council and the City Clerk, to -wit:
Glen Walker
Mayor
Ted Kloesel
Councilman
David Evans
Councilman
Leonard W. Stasney
Councilman
Allen Cannon
Councilman
Don M. Hullum
Councilman
Lamar Kelley
Councilman
Mrs. Edna Oliver
City Clerk
and 11 of said persons were present except the following absentees:
7 �.� thus constituting a 1.
q orum. Whereupon, among other business, the following was transacted
at said meeting: a written
ORDINANCE AUTHORIZING ISSUANCE OF
$6,500,000 GENERAL - OBLIGATION BONDS, SERIES 1971;
APPROPRIATING $6,500,000 OF PROCEEDS OF SALE THEREOF
FOR VARIOUS PROJECTS; AND CONTAINING OTHER PROVISIONS
RELATING THERETO
was duly introduced for the consideration of said Council and read
in full. It was then duly moved and seconded that said ordinance be
adopted; and, after due discussion, said motion, carrying with it the
adoption of said ordinance, prevailed and carried by the following
vote:
AYES: All members of said Council shown present
above voted "Aye."
NOES: None
2. That a true, full, and correct copy of the aforesaid ordinance
adopted at the meeting described in the above and foregoing paragraph
is attached to and follows this certificate; that said ordinance has
been duly recorded in said Council's minutes of said meeting; that
the above and foregoing paragraph is a true, full, and correct excerpt
from said Council's minutes of said meeting pertaining to the adop-
tion of said ordinance; that the persons named in the above and fore-
going paragraph are the duly chosen, qualified, and acting officers
and members of said Council as indicated therein; that each of the
officers and members of said Council was duly and sufficiently noti-
fied officially and personally, in advance, of the time, place, and
purpose of the aforesaid meeting and that said ordinance would be intro-
duced and considered for adoption at said meeting, and each of said
Page 1 of 2 pages
I
officers and members consented, in advance, to the holding of said
meeting for such purpose; that said meeting was open to the public
as required by law; and that public notice of the time, place, and
subject of said meeting was given as required by Vernon's Article
6252 -17, as amended.
3. The Mayor of said City has approved, and hereby approves,
the aforesaid ordinance; the Mayor and the City Clerk of said City have
duly signed said ordinance; and the Mayor and City Clerk of said City
hereby declare that their signing of this certificate shall also con-
stitute the signing of the attached and following copy of said ordinance
for all purposes.
(SEAL)
SIGNED AND SEALED the 12th day of Apr' 197
__C_��
City Clerk May6r
Page 2 of 2 pages