Ordinance No. 1,8736.120
ORDINANCE NO.1873
ORDINANCE AUTHORIZING ISSUANCE OP $2,000,000
GENERAL OBLIGATION BONDS,SERIES 1975;APPROPRIATING
$2,000,000 OF PROCEEDS OP SALE THEREOF FOR VARIOUS
PROJECTS;AND CONTAINING OTHER PROVISIONS RELATING THERETO
THESTATE OF TEXAS §
COUNTIES OF HARRIS AND CHAMBERS §
CITY OF BAYTOWN §
WHEREAS,the bonds hereinafter authorized wereduly and
favorably voted at an election held in the City of Baytown,
Texas (the "City"),on the 27th day of May,1975;and
WHEREAS,the City Council nowdeems it advisable to issue,
sell,and deliver $2,000,000 bonds for the purposes shown in
the following schedule as a portion and the first installment
of $11,5^5,000 bonds voted at said election:
Amount Amount
Amount Heretofore Being Unissued
Purpose Authorized Issued Issued Balance
Streets $2,300,000 $-0-$35,000 $2,265,000
Traffic Signal 650,000 -0--0-650,000
Drainage 2,350,000 -0-1,090,000 1,260,000
Waterworks Sys.850,000 .-0-635,000 215,000
San.Sew.Sys.3,000,000 -0-100,000 2,900,000
Park 1,300,000 -0-100,000 1,200,000
Library Bldg.1,095,000 -0-40,000 1,055,000
$11,545,000 $-0-$2,000,000 $9,5^5,000
WHEREAS,the City Council has determined that the remaining
$9,5^5,000 authorized bonds may be issued,sold,and delivered
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
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published in eachsaid 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 publi
cations of said notice and the City Councildesires to autho
rize 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 OP THE CITY
OF BAYTOWN THAT:
Section l(a).The ordinance heretofore adopted by the
City Council on the 30th day of April,1975,authorizing the
issuance of the bonds described in the preamble of this ordi
nance and calling an election therefor is hereby in all things
ratified and confirmed.
Section Kb).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
tobe designated CITY OF BAYTOWN,TEXAS,GENERAL OBLIGATION
BONDS,SERIES 1975 (hereinaftercalled the"Bonds"),are hereby
authorized to be issued and delivered in the aggregate princi
pal amount of $2,000,000 for the following purposes:
(1)$35,000 for constructing permanent street
improvements for the City;
(2)$1,090,000 for constructing permanent
drainage improvements forthe City;
(3)$635,000 for constructing improvements
to the City's waterworks system;
(4)$100,000 for constructing improvements
to the City's sanitary sewer system;
(5)$100,000 for purchasing and/or improving
lands for park purposes for the City;and
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(6)$40,000 for constructing and permanently
equippingadditions to the existing library building
of the City.
Section 3.The Bonds shall be dated October 1,1975,
shall be numbered consecutively from 1 through 400,and shall
be in the denomination of $5,000 each,and shall mature seri
ally on February 1 of each of the years,and in the amounts,
respectively,as set forth in the following schedule:
YEAR
1979
1980
1981
1982
1983
1984
1985
1986
1987
AMOUNT
$100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
YEAR
1988
1989
1990
1991
1992
1993
1994
1995
AMOUNT
$100,000
100,000
100,000
100,000
100,000
200,000
200,000
200,000
The Bonds may be redeemed prior to their scheduled maturities,
at the option of the City,on the datesstated and in the man
ner provided in the FORM OF BOND set forth in this ordinance.
Section 4.The Bonds shall bear interest per annum at
the following rates,respectively,to-wit:
Bonds maturing 1979 through 1992,5.75%
Bonds maturing 1993 XKHXXgKXXgXX,5.95%
Bonds maturing 1994 through 1995,6 %
evidenced by interest coupons which shall appertain to the
Bonds and whichshall be payable on the dates indicated in
the FORM OF BOND set forth in this ordinance.
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Section 5.The Bonds,and the interest coupons apper
taining thereto,shall be payable,shall have the character
istics,and shall be signed and executed (and the 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 the 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
the Bonds,and the form of the aforesaid interest coupons
which shall appertain and be attached initially to each of the
Bonds,shall be,respectively,substantially as follows:
FORM OF BOND:
N0-$5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTIES OFHARRIS AND CHAMBERS
CITY OF BAYTOWN,TEXAS
GENERAL OBLIGATION BOND
SERIES 1975
ON FEBRUARY 1,19 ,the CITY OF BAYTOWN (the "City"),
in the Counties of Harris and Chambers,in the State of Texas,
promises to pay to bearer the principal amount of
FIVE THOUSAND DOLLARS
and topay interest thereon,from the date hereof,at the rate
of %per annum,evidenced by interest coupons payable
February 1,1976,and semiannually thereafter on each August 1
and February 1 while this Bond is outstanding.The principal
of thisBond and the interest coupons appertaining hereto shall
be payable to bearer,in lawful money of the United States of
America,without exchange or collection charges to the bearer,
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upon presentation and surrender of this Bond or proper inter
est coupon at the CITIZENS NATIONAL BANK &TRUST CO.,Baytown,
Texas,or,at the option of the holder,at the FIRST CITY
NATIONAL BANK OP 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 October 1,1975,numbered consecutively from 1
through 400,in the denomination of $5,000 each,issued in the
aggregate principal amount of $2,000,000 for the following purposes
(1)$35,000 for constructing permanent street
improvements for the City;
(2)$1,090,000 for constructing permanent
drainage improvements for the City;
(3)$635,000 for constructing improvements
to the City's waterworks system;
(4)$100,000 for constructing improvements
to the City's sanitary sewer system;
(5)$100,000 for purchasing and/or improving
lands for park purposes for the City;and
(6)$40,000 for constructing and permanently
equipping additions to the existing library building
of the City;
in accordance with Chapters 1 and 7 of Title 22,Revised Civil
Statutes of Texas,as amended,and pursuant to an election held
within the Cityon the 27th day of May,1975,and authorized
pursuant to an ordinance duly adopted by the City Council of
the City entitled ORDINANCE AUTHORIZING ISSUANCE OF $2,000,000
GENERAL OBLIGATION BONDS,SERIES 1975;APPROPRIATING $2,000,000
OF PROCEEDS OF SALE THEREOF FOR VARIOUS PROJECTS;AND CONTAINING
OTHER PROVISIONS RELATING THERETO and finally passed on the
25th dayof September,1975,thisBond being one of a series
of Bonds which constitutes a portion and the first installment
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of $11,5^5,000 general obligation bonds voted at the aforesaid
election.
ON AUGUST 1,1990,ORON ANY INTEREST PAYMENT DATE THERE
AFTER,the outstanding Bonds of this seriesmay be redeemed
prior to their scheduled maturities,at the option ofthe 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 tobe mailed to the banks
at which the Bonds are payable and published at least once in
a financial publication published in the Cityof NewYork,
New York.By the datefixed forany such redemption,due pro
vision shall be made with the paying agents for the payment of
the required redemption price.If such written notice ofre
demption 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 forthe purpose of being paid bythe
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 performed,
existed,and been done in accordance with law;that this Bond
isa general obligation of the City,issued on the full faith
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andcredit thereof;and that annual ad valorem taxes sufficient
to provide forthe 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,respectively,
and the official seal of the City has been duly impressed,or
placed in facsimile,onthis Bond.
COUNTERSIGNED:xxxxxxxxxx
Mayor ~~
xxxxxxxxxx CITY OP BAYTOWN,TEXAS
City Clerk
CITY OF BAYTOWN,TEXAS
(SEAL)
FORM OF REGISTRATION CERTIFICATE:
COMPTROLLER'S REGISTRATION CERTIFICATES REGISTER NO.
I hereby certify thatthis Bond has been examined,cer
tified asto 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.
WITNESS my signature and seal this .
xxxxxxxxxx
(SEAL)Comptroller of Public Accounts of
the State of Texas
FORM OF INTEREST COUPON:
NO.
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6i27.
ON
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 tothe bearer,
unless due provision has been made for the redemption prior to
maturity of the Bond to which this coupon appertains,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 designated of
that issue of CITY OF BAYTOWN,TEXAS,GENERAL OBLIGATION BONDS,
SERIES 1975,dated October 1,1975.Bond No.
—■xxxxxxxxxx xxxxxxxxxx
City Clerk "
Section 7.A special fund or account,to be designated
the "City of Baytown,Texas,General Obligation Bonds,Series
1975,Interest and Sinking Fund"(hereinafter called the "In
terest 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 on
and principal of the Bonds.All ad valorem taxes leviedand
collected for and on account of the Bondsshall be deposited,
as collected,to the credit of the Interest and Sinking Fund.
During each year while any of the Bonds or interest coupons
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appertaining thereto are outstanding and unpaid,the City
Council of the City shall compute and ascertain a rate and
amount ofad valorem tax which will be sufficient to raise
and produce the money required to pay the interest on the
Bonds as such interest comes dueand to provide and maintain
a sinking fund adequate to pay the principal of the Bonds as
such principal matures but never less than 255 of the original
principal amount of the Bonds as a sinking fund each year;
and said tax shall be based on the latest approved tax rolls
of the City,with full allowance being made for tax delinquen
cies and the cost of tax collection.Said rate and amount of
ad valorem tax are hereby levied,and are hereby ordered to be
levied,against all taxable property in the City for each year
while any of the 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
Interest and Sinking Fund.Said ad valorem taxes sufficient
to provide forthe payment of the interest on and principal
of the Bonds,as such interest comes due and such principal
matures,are hereby pledged irrevocably for such payment
within the limits prescribed by law.
Section 8.Immediately following delivery of the Bonds
to the purchaser thereof,the accrued interest and premium,
if any,shall be deposited inthe Interest and Sinking Fund
created above in Section 7.
Section 9.There is hereby appropriated out of the pro
ceeds of sale of the Bonds authorized by this ordinance the
following sums for the following indicated purposes,respectively;
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(1)$35,000 for constructing permanent street
improvements forthe City;
(2)$1,090,000 for constructing permanent
drainage improvements for the City;
(3)$635,000 for constructing improvements
to the City's waterworks system;
CO $100,000 for constructing improvements
to the City's sanitary sewer system;
(5)$100,000 for purchasing and/or improving
lands for park purposes for the City;and
(6)$40,000 for constructing and permanently
equippingadditions to the existing library building
of the City.
It is hereby estimated thatthe 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 forany down payment on theseprojects;and no
such down payment is hereby ordered tobe made.Itis hereby
officially foundand determined that the probable period of
usefulness of each of the aforesaid projects is forty years.
Section 10.Out of the proceeds of sale of the Bonds
authorized by this ordinance the following sums are hereby
ordered to be used and expended forthe following indicated
purposes,respectively:
(1)$35,000 for constructing permanent street
improvements fortHe City;
(2)$1,090,000 for constructing permanent
drainage improvements for the City;
(3)$635,000 for constructing improvements
to the City's waterworks system;
(4)$100,000 for constructing improvements
to the City's sanitary sewer system;
(5)$100,000 for purchasing and/or improving
lands for park purposes for the City;and
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(6)$40,000 for constructing and permanently
equipping additions to the existing library building
ofthe City;
as provided in the ordinance adopted on the 30th day of April,
1975>calling the bond election which was held inthe City on
the 27th day of May,1975-
Section 11.The City certifies that based upon all facts,
estimates and circumstances now known or reasonably expected
to bein existence on the date the Bonds are delivered and
paid for,the City reasonably expects that the proceeds of
the Bonds will not be used in a manner that would cause the
Bonds or any portion of the Bonds tobe an "arbitrage bond"
under Section 103(d)(2)of the Internal Revenue Codeof 1954,
as amended,and the temporary and proposed regulations here
tofore prescribed thereunder,including,without limitation,
Sections 1.103-13 and 1.103-11!of the proposed regulations
published in the Federal Register on May 3,1973.Furthermore,
all officers,employees and agents of the City are authorized
and directed to provide certifications of facts,estimates
and circumstances which are material to the reasonable expec
tations of the City asof the date the Bonds are delivered
and paid for,and any such certifications may be relied upon
by counsel,by the owners or holders of the Bonds,or by any
person interested in the exemption of interest on the Bonds
from Federal income taxation.Moreover,the City covenants
that it shall make such use of the proceeds of the Bonds,regu
late investments of proceeds of the Bonds,and take such other
and further action as may be required so that the Bondsshall
not be "arbitrage bonds"underSection 103(d)of the Internal
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Revenue Code of 1951!,as amended,and regulations prescribed
from time to time thereunder.
Section 12.The Mayor ofthe City is hereby authorized
to have control of the Bonds and all necessary records and
proceedings pertaining to the Bonds pending their delivery
and their investigation,examination,and approval bythe
Attorney General of the State of Texas and their registration
by the Comptroller of Public Accounts of the State of Texas.
Upon registration of the Bonds,the Comptroller of Public
Accounts (or a deputy designated in writing to act forthe
Comptroller)shall manually sign the Comptroller's Registra
tion Certificate prescribed herein to be printed and endorsed
on each Bond;and the seal of the Comptroller shall be im
pressed,or placed in facsimile,on each of the Bonds.
Section 13-The.Bonds are hereby sold and shall bede
livered to Texas Commerce Bank National Association
for the parvalue thereof and accrued interest thereon to
date of delivery,plus a premium of $none subject to the
unqualified approving opinions,asto the legality of the
Bonds,of the Attorney General ofthe State of Texas and of
Vinson,Elkins,Searls,Connally &Smith,Houston,Texas,
market attorneys;and it is hereby officially found,determined,
and declared that the Bonds are sold on the best terms and for
the best pricepossible.
Section lH.The approving opinion of Vinson,Elkins,
Searls,Connally &Smith,Houston,Texas,'and Cusip Numbers
may be printed on the back of each of the Bonds,but errors
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or omissions in such opinion or errors inor omissions of such
numbers shall have no effect on the validity of the Bonds.
Section 15.The Mayor and all other appropriate officers
of the CITY OF BAYTOWN are hereby authorized and directed to
do any and all things'necessary or convenient to carry outthe
provisions ofthis ordinance.
Section 16.This ordinance was read once by the City
Council and shall take effect immediately.
Section 17.It is hereby officially found and determined
that the need of the City for such financing creates an emer
gency and an urgentpublic necessity forthe holding,at the
scheduled time,of the meeting of the City Council at which
this ordinance is adopted and forthe adoption of this ordi
nance;and the NOTICE OP MEETING relating to said meeting and
heretofore posted by the City.Clerk,and the posting thereof,
is hereby authorized,approved,adopted,ratified,andcon
firmed .
PASSED,AUTHENTICATED,AND APPROVED this25th day of
September,1975.■*•
•"^*Bfi*«
ATTEST:
Co c
Mayor r •V
CITYOF BAYTOWN,TEXAS
City Clerk
CITY OF BAYTOWN,TEXAS
(SEAL)
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