Ordinance No. 1,9136277
ORDINANCE NO.1913
ORDINANCE AUTHORIZING ISSUANCE OP $3,000,000
GENERAL OBLIGATION BONDS,SERIES 1975-A;APPROPRIATING
$3,000,000 OF PROCEEDS OP SALE THEREOF FOR VARIOUS
PROJECTS;AND CONTAINING OTHER PROVISIONS RELATING THERETO
THE STATE OF TEXAS §
COUNTIES OF HARRISAND CHAMBERS §
CITY OF BAYTOWN §
WHEREAS,the bonds hereinafter authorized were duly and
favorably voted at an election held in the City of Baytown,
Texas (the "City"),on the 27th day ofMay,1975;and
WHEREAS,the City Council nowdeems it advisable to issue,
sell,and deliver $3,000,000 bonds for the purposes shown in
the following schedule as a portion and the second installment
of $11,545,000 bondsvoted at said election:
Purpose
Streets
Traffic Signal
Drainage
Waterworks Sys
San.Sew.Sys.
Park
Library Bldg.
Amount
Authorized
$2,300,000
650,000
2,350,000
850,000
3,000,000
1,300,000
1,095,000
$11,545,000
Amount
Heretofore
Issued
$35,000
-0-
1,090,000
635,000
100,000
100,000
40,000
$2,000,000
Amount
Being
Issued
$805,000
-0-
525,000
-0-
400,000
215,000
1,055,000
$3,000,000
Unissued
Balance
$1,460,000
650,000
735,000
215,000
2,500,000
985,000
-0-
$6,545,000
WHEREAS,the City Council has determined that the remain
ing $6,545,000 authorized bonds may be issued,sold,and de
livered ata 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
^6278
published in each said publication morethan ten days prior to
the date set forthe 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 l(b).All the matters and facts recited in the
preamble hereof are hereby officially found tobe true and
correct.
Section 2.The City's negotiable,serial,coupon bonds
to be designated CITY OF BAYTOWN,TEXAS,GENERAL OBLIGATION
BONDS,SERIES1975-A (hereinafter called the "Bonds"),are
hereby authorized to be issued and delivered in the aggregate
principal amount of $3,000,000 for the following purposes:
(1)$805,000 for constructing permanent street
improvements forthe City;
(2)$525,000 for constructing permanent drainage
improvements for the City;
(3)$400,000 for constructing improvements
to the City's sanitary sewer system;
(4)$215,000 for purchasing and/or improving
lands for park purposes for the City;and
(5)$1,055,000 for constructing and permanently
equipping additions to the existing library building
of the City.
-2-
6279
Section 3.The Bonds shall be dated December 1,1975,
shall be numbered consecutively from 1 through 600,and shall
bein the denomination of $5,000 each,andshall mature seri
ally on February 1 of each of the years,and in the amounts,
respectively,as set forth in the following schedule:
YEAR AMOUNT YEAR AMOUNT
1979
1980
1981
1982
1983
1984
1985
1986
1987
$100,000
100,000
100,000
100,000
150,000
150,000
150,000
150,000
150.000
1988
1989
1990
1991
1992
1993
1994
1995
1996
$150,000
200,000
200,000
200,000
200,000
200,000
200,000
250,000
250,000
The Bonds may be redeemed prior to their scheduled maturities,
at the option of the City,on the datesstatedand in the man
ner provided in the FORM OF BOND set forth in this ordinance.
Section H.The Bonds shall bear interest per annum at
the following rates,respectively,to-wit:
Bonds maturing 1979 through 1984_,6.50 %
Bonds maturing 1985.through 1989.,5.6 %
Bonds maturing 19qo_through 1991.,5.7 %
Bonds maturing 1992.through 1994_,6.0 %
Bonds maturing 1995.through 1996_,5.50 %
evidenced by interest coupons which shall appertain to the
Bonds and which shall be payable on the dates indicated in
the FORM OF BOND set forth in this ordinance.
-3-
6280
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 Bondsshall
be sealed),all as provided and in the manner indicated in
the FORM OP BOND set forth in this ordinance.
Section 6.The form of the Bonds,including the form of
registration certificate of the Comptroller ofPublic Accounts
of the State of Texas to be printed and endorsed on each of
theBonds,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:
NO.$5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTIES OP HARRIS AND CHAMBERS
CITY OF BAYTOWN,TEXAS
GENERAL OBLIGATION BOND
SERIES 1975-A
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 to pay interest thereon,from the date hereof,at the rate
of %per annum,evidenced by interest coupons payable
August 1,1976,and semiannually thereafter on each February 1
and August 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,
-H-
\•■■.\
'6281
upon presentation and surrender of this Bond or properinter-
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 December 1,1975,numbered consecutively from 1
through 600,in the denomination of $5,000 each,issued in the
aggregate principal amount of $3,000,000 forthe following purposes:
(1)$805,000 for constructing permanent street
improvements for the City;
(2)$525,000 for constructing permanent drainage
improvements for theCity;
(3)$400,000 for constructingimprovements to
the City's sanitary sewer system;
$215,000 for purchasing and/or improving
lands for park purposes forthe City;and
(5)$1,055,000 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 toan election held
within the City on the 27th day of May,1975,and authorized
pursuant toan ordinance duly adopted by the City Council of
the City entitled ORDINANCE AUTHORIZING ISSUANCE OF $3,000,000
GENERAL OBLIGATION BONDS,SERIES 1975-A;APPROPRIATING
$3,000,000 OF PROCEEDS OF SALE THEREOF FOR VARIOUS PROJECTS;
AND CONTAINING OTHER PROVISIONS RELATING THERETO and finally
passed on the 25th day of November,1975,this Bond being one
of a series of Bonds which constitutes a portion and the second
installment of $11,5^5,000 general obligation bonds voted at
V the aforesaid election.
-5-
6282
£}°N AUGUST 1*WSO*°R ON ANY INTEREST PAYMENT DATE THERE
AFTER,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 datefixed for any such redemption,the City shallcause
a written notice of such redemption to be mailed to the banks
at which the 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 forany such redemption,due pro
vision shall be madewith 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 tobeso
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 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 tobe performed,exist,and be done precedent to or in
the issuance and delivery of this Bond have been performed,
existed,and beendone in accordance with law;that this Bond
is a general obligation of the City,issued on the full faith
and credit thereof;and that annual ad valorem taxes sufficient
to provide forthe payment of the interest on and principal of
-6-
this Bond,as such interest comes dueand such principal matures,
have been levied and ordered to be levied against all taxable
property inthe City andhavebeen pledged 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,on this Bond.
COUNTERSIGNED:xxxxxxxxxx
Mayor "
xxxxxxxxxx CITY OF BAYTOWN,TEXAS
City Clerk
CITY OP BAYTOWN,TEXAS
(SEAL)
FORM OP REGISTRATION CERTIFICATE:
COMPTROLLER'S REGISTRATION CERTIFICATE§REGISTER NO.
I hereby certify thatthis Bond has been examined,cer
tified asto validity,and approved by the Attorney General
ofthe 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.
ON 1,19_,
the CITY OF BAYTOWN,in the Counties of Harris and Chambers,
State of Texas,promises to pay to bearer the amount shown on
-7-
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 forthe redemption prior to
maturity of the Bond to which this coupon appertains,upon
presentation and surrender ofthis interest 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,said amount being interest due that
day on the Bond bearing the number hereinafter designated of
that issue of CITY OP BAYTOWN,TEXAS,GENERAL OBLIGATION BONDS,
SERIES 1975-A,dated December 1,1975.Bond No..
xxxxxxxxxx xxxxxxxxxx
City Clerk Mayor
Section 7.A special fund or account,to be designated
the "City of Baytown,Texas,General Obligation Bonds,Series
1975-A,Interest and Sinking Fund"(hereinafter called the
"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
ofthe City and shall be used only for paying the interest on
and principal of the Bonds.All ad valorem taxes levied and
collected for and on account of the Bondsshall be deposited,
as collected,to thecredit of the Interest and Sinking Fund.
During each year while any of the Bonds or interest coupons
appertaining thereto are outstanding and unpaid,the City
Council of the City shallcompute and ascertain a rate and
amount of ad valorem tax which will be sufficient to raise
-8-
]6285
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 2%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 for the payment of the interest on and principal of
the Bonds,as such interest comes dueand such principal ma
tures,are hereby pledged 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 in the Interest and Sinking Fund.
Section 9.There is hereby appropriated out of the pro
ceeds ofsaleof 'the Bonds authorized by this ordinance the
following sums for the following indicated purposes,respectively:
(1)$805,000 for constructing permanent street
improvements for the City;
(2)$525,000 for constructing permanent drainage
improvements forthe City;
(3)$^00,000 for constructing improvements to
the City's sanitary sewer system;
-9-
6286
(4)$215,000 for purchasing and/or improving
lands for park purposes for the City;and
(5)$1,055,000 for constructing and permanently
equipping additions to the existing library buildins
of the City.
Itis hereby estimated that the maximum cost,respectively,
for each of the aforesaid projects will not exceed the amount
namedabove 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 tobe made.It is hereby
officially foundand determined (1)that the probable period
of usefulness of each of the aforesaid projects is forty years,
and (2)that all of said projects are related projects within
the meaning of Section 61 of the Home Rule Charter of the City.
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 for the following indicated
purposes,respectively:
(1)$805,000 for constructing permanent street
improvements for the City;
(2)$525,000 for constructing permanent drainage
improvements forthe City;
(3)$400,000 for constructing improvements to
the City's sanitary sewer system;
(4)$215,000 for purchasing and/orimproving
lands for park purposes for the City;and
(5)$1,055,000 for constructing and permanently
equipping additions to the existing library building
of the City;
as provided in the ordinance adopted on the 30th day of April,
1975,calling the bond election which was held in the City on
the 27th day of May,1975.
-10-
'6287
Section 11.The City certifies that based upon all facts,
estimates and circumstances now known or reasonably expected
to bein existence onthe 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 Code of 19511,
as amended,andthe temporary and proposed regulations here
tofore prescribed thereunder,including,without limitation,
Sections1.103-13 and 1.103-14 of the proposed regulations
published in the Federal Register on May 3,1973-Furthermore,
allofficers,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 as of the date the Bonds are delivered
and paid for,andany 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 makesuch use of the proceeds of the Bonds,regu
late investments of proceeds of the Bonds,and takesuch other
and further action as may be required so that the Bonds shall
not be "arbitrage bonds"under Section 103(d)of the Internal
Revenue Code of 195^>as amended,and regulations prescribed
from time to time thereunder.
Section 12.The Mayor of the City is hereby authorized
to have control of the Bonds andall necessary records and
proceedings pertaining to the Bonds pending their delivery
-11-
6288
and their investigation,examination,and approval by the
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 actfor the
Comptroller)shall manually sign the Comptroller's Registra
tion Certificate prescribed herein tobe printed and endorsed
on each Bond;andthe seal of the Comptroller shall be im
pressed,or placed in facsimile,on each of the Bonds.
Section 13.TheBonds are hereby sold and shall be de
livered to Texas Commerce Bank National Association
forthe par value thereof and accrued interest thereon to date
of delivery,plus a premium of $None subject to the un
qualifiedapproving opinions,as to the legality of the Bonds,
of the Attorney General of the 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 soldon the best terms andfor the
best price possible.
Section 1*1.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 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 are hereby authorized and directed to do any and
all things necessary or convenient to carry out the provisions
of this ordinance.
-12-
6289
Section 16.This ordinance was readonce by the City
Council and shall take effect immediately.
Section 17.Itis hereby officially found and determined
thatthe need of the City for such financing creates an emer
gency and an urgent public necessity for the 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;andthe NOTICE OP MEETING relating to said meeting and
heretofore posted by theCity Clerk,and the posting thereof,
is hereby authorized,approved,and ratified.
PASSED,AUTHENTICATED,AND APPROVED this25th day of
November,1975-
Mayor \/
CITY OP BAYTOWN,TEXAS
ATTEST:
City Clerk
CITY OF BAYTOWN,TEXAS
(SEAL)
-13-
"V