Ordinance No. 2,664524 -1
ORDINANCE NO. 2664
ORDINANCE AUTHORIZING ISSUANCE OF $2,880,000
PERMANENT IMPROVEMENT BONDS, SERIES 1979; APPROPRIATING
$2,880,000 OF PROCEEDS OF SALE THEREOF FOR VARIOUS
PROJECTS; AND CONTAINING OTHER PROVISIONS RELATING THERETO
THE STATE OF TEXAS S
COUNTIES OF HARRIS AND CHAMBERS S
CITY OF BAYTOWN S
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 of May, 1975; and
WHEREAS, the City Council now deems it advisable to issue,
sell, and deliver $2,880,000 bonds for the purposes shown in
the following schedule as the fourth and final installment of
$11,545,000 bonds voted at said election:
Amount
Previously
Issued
1,100,000
650,000
1,900,000
850,000
2,000,000
1,070,000
1,095,000
8,665,000
Amount
Being
Issued
$1,200,000
-0-
450,000
-0-
1,000,000
230,000
-0-
$2,880,000
Unissued
Balance
$ -0-
-0-
-0-
-0-
-0-
-0-
-0 -
alZ
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 at least 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 Council desires 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 OF THE CITY
OF BAYTOWN THAT:
Amount
Purpose
Authorized
Streets $
2,300,000
Traffic Signal
650,000
Drainage
2,350,000
Waterworks Sys.
850,000
San. Sew. Sys.
3,000,000
Park
1,300,000
Library Bldg.
1,095,000
11,545,000
Amount
Previously
Issued
1,100,000
650,000
1,900,000
850,000
2,000,000
1,070,000
1,095,000
8,665,000
Amount
Being
Issued
$1,200,000
-0-
450,000
-0-
1,000,000
230,000
-0-
$2,880,000
Unissued
Balance
$ -0-
-0-
-0-
-0-
-0-
-0-
-0 -
alZ
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 at least 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 Council desires 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 OF THE CITY
OF BAYTOWN THAT:
kd
Section 1(a).
524 -1a
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 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, PERMANENT IMPROVEMENT
BONDS, SERIES 1979 (hereinafter called the "Bonds "), are hereby
authorized to be issued and delivered in the aggregate prin-
cipal amount of $2,880,000 for the following purposes:
(1) $1,200,000 for constructing permanent street
improvements for the City;
(2) $450,000 for constructing permanent drainage
improvements for the City;
(3) $1,000,000 for constructing improvements to
the City's sanitary sewer system; and
(4) $230,000 for purchasing and /or improving
lands for park purposes for the City.
Section 3. The Bonds shall be dated June 1, 1979, shall
be numbered consecutively from 1 through 576, and shall be in
the denomination of $5,000 each, and shall mature serially on
February 1 of each of the years, and in the amounts, respec-
tively, as set forth in the following schedule:
YEAR
AMOUNT
YEAR
AMOUNT
1980
$ 50,000
1990
$170,000
1981
50,000
1991
170,000
1982
100,000
1992
200,000
1983
100,000
1993
200,000
1984
125,000
1994
200,000
1985
125,000
1995
200,000
1986
125,000
1996
200,000
1987
125,000
1997
200,000
1988
170,000
1998
200,000
1989
170,000
The Bonds may be redeemed prior to their scheduled maturities,
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at the option of the City, on the dates stated 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
1980
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_,
%
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 the
Bonds and which shall be payable on the dates indicated in
the FORM OF BOND set forth in this ordinance.
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:
NO.
FORM OF BOND:
-3-
$5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTIES OF HARRIS AND CHAMBERS
CITY OF BAYTOWN, TEXAS
PERMANENT IMPROVEMENT BOND
SERIES 1979
94 -1c
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
February 1, 1980, and semiannually thereafter on each August 1
and February 1 while this Bond is outstanding. The principal
of this Bond 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,
upon presentation and surrender of this Bond or proper inter-
est coupon at the CITIZENS NATIONAL BANK & TRUST CO., Baytown,
Texas, which shall be the paying agent for this series of Bonds.
THIS BOND is one of a series of negotiable, serial, cou-
pon bonds, dated June 1, 1979, numbered consecutively from 1
through 576, in the denomination of $5,000 each, issued in the
aggregate principal amount of $2,880,000 for the following
purposes:
(1) $1,200,000 for constructing permanent street
improvements for the City;
(2) $450,000 for constructing permanent drainage
improvements for the City;
(3) $1,000,000 for constructing improvements to
the City's sanitary sewer system; and
(4) $230,000 for purchasing and /or improving
lands for park purposes for 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 City on the 27th day of May, 1975, and authorized
pursuant to an ordinance duly adopted by the City Council of
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9 cromv -1d
the City entitled ORDINANCE AUTHORIZING ISSUANCE OF $2,880,000
PERMANENT IMPROVEMENT BONDS, SERIES 1979; APPROPRIATING
$2,880,000 OF PROCEEDS OF SALE THEREOF FOR VARIOUS PROJECTS;
AND CONTAINING OTHER PROVISIONS RELATING THERETO and finally
passed on the 24th day of Play, 1979, this Bond being one of a
series of Bonds which constitutes a portion and the fourth and
final installment of $11,545,000 bonds voted at the aforesaid
election.
ON AUGUST 1, 1993, OR 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 date fixed for any such redemption, the City shall cause
a written notice of such redemption to be mailed to the bank
at which the Bonds are payable and published at least once in
a financial publication published in the City of New York,
New York, or in the City of Austin, Texas. By the date fixed
for any such redemption, due provision shall be made with the
paying agent for the payment of the required redemption price.
If such written 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 agent 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,
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90, le
existed, and been done in accordance with law; 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 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 OF BAYTOWN, TEXAS
(SEAL)
FORM OF REGISTRATION CERTIFICATE:
COMPTROLLER'S REGISTRATION CERTIFICATES REGISTER NO.
I hereby certify that this Bond has been examined, cer-
tified 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.
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
this interest coupon, in lawful money of the United States of
America, without exchange or collection charges to the bearer,
M
90-1f
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, said amount
being interest due that day on the Bond bearing the number
hereinafter designated of that issue of CITY OF BAYTOWN, TEXAS,
PERMANENT IMPROVEMENT BONDS, SERIES 1979, dated June 1, 1979.
Bond No.
xxxxxxxxxx xxxxxxxxxx
City Clerk Mayor
Section 7. A special fund or account, to be designated
the "City of Baytown, Texas, Permanent Improvement Bonds,
Series 1979, 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
of the 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 Bonds shall be deposited,
as collected, to the credit 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 shall compute and ascertain a rate and
amount of ad valorem tax which will be sufficient to raise
and produce the money required to pay the interest on the
Bonds as such interest comes due and to provide and maintain
a sinking fund adequate to pay the principal of the Bonds as
such principal matures but never less than 20 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
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90.q11)-1g
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 due and such principal
matures, 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 of sale of the Bonds authorized by this ordinance the fol-
lowing sums for the following indicated purposes, respectively:
(1) $1,200,000 for constructing permanent street
improvements for the City;
(2) $450,000 for constructing permanent drainage
improvements for the City;
(3) $1,000,000 for constructing improvements to
the City's sanitary sewer system; and
(4) $230,000 for purchasing and /or improving
lands for park purposes for the City.
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 (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
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905 lh
ordered to be used and expended for the following indicated
Purposes, respectively:
(1) $1,200,000 for constructing permanent street
improvements for the City;
(2) $450,000 for constructing permanent drainage
improvements for the City;
(3) $1,000,000 for constructing improvements to
the City's sanitary sewer system; and
(4) $230,000 for purchasing and /or improving
lands for park purposes for 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.
Section 11. The City certifies that based upon all facts
and estimates now known or reasonably expected to be in exis-
tence 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 to be an "arbitrage bond" under Section 103(c)(2)
of the Internal Revenue Code of 1954, as amended, and the
regulations prescribed thereunder. Furthermore, all officers,
employees and agents of the City are authorized and directed to
provide certifications of facts and estimates that are material
to the reasonable expectations of the City as of the date the
Bonds are delivered and paid for. In particular, all or any
officers of the City are authorized to certify for the City the
facts and circumstances and reasonable expectations of the City
on the date the Bonds are delivered and paid for regarding the
amount and use of the proceeds of the Bonds. Moreover, the
City covenants that it shall make such use of the proceeds of
the Bonds, regulate investments of proceeds of the Bonds and
take such other and further actions as may be required so that
the Bonds shall not be "arbitrage bonds" under Section 103(c)(2)
of the Internal Revenue Code of 1954, as amended, and the regu-
lations prescribed from time to time thereunder.
OWN ' 90511
Section 12. The Mayor of the 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 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 for a deputy designated in writing to act for the
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 be de-
livered to FIRST CITY NATIONAL BANK OF HOUSTON
for the par value thereof and accrued interest thereon to date
of delivery, plus a premium of $ -0- , subject to the un-
qualified approving opinions, as to the legality of the Bonds,
of the Attorney General of the State of Texas and of Vinson &
Elkins, 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 price possible.
Section 14.
The approving opinion of Vinson & Elkins,
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 in or 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.
Section 16. This ordinance was read once by the City
Council and shall take effect immediately.
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905 1 j
Section 17. The Official Notice of Sale, Official State-
ment and Official Bid Form submitted to the City Council are
hereby approved for use in connection with the solicitation
of bids for and sale and distribution of the Bonds.
Section 18. It is hereby officially found and determined
that the 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 for the adoption of this ordi-
nance; and the NOTICE OF MEETING relating to said meeting and
heretofore posted by the City Clerk, and the posting thereof,
is hereby authorized, approved, adopted and ratified.
PASSED, AUTHENTICATED, AND APPROVED this 24th day of
May, 1979.
r
CITY OF BAYTOWN, TEXAS
ATTEST:
City Clerk
CITY OF BAYTOWN, TEXAS
(SEAL)
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