HomeMy WebLinkAbout1951-0165 - Ordinance - 08/18/1951Special City Council Meeting
August 18, 1951
• Page Two
ORDINANCE NO. 165
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The State of Texas
County of Brazos
City of College Station 0
On this the 18th day of August, 1951, the City Council of the City
of College Station, Texas, convened in special session at the regular meeting
place thereof with the following members present, to wit: Ernest Langford,
Mayor; H. L. Boyer, A. P. Boyett, R. B. Halpin, W. D. Fitch, Councilmen;
N. M. McGinnis, City Secretary, and the following absent: Councilmen
Badgett and Orr, constituting a quorum present, at which time, the following
among other business was transacted:
Counnilman Boyer introduced a proposed ordinance. The ordinance
was read in full.
Councilman Halpin made a motion that the rule requiring ordinances to be
read at more than one meeting be suspended. The motion was seconded by
Councilman Fitch. The motion carried by the following vote: Ayes:
Councilmen Boyer, Boyett, Halpin, Fitch; Noes: None..
Councilman Boyett made a motion that the ordinance be passed finally.
The motion was seconded by Councilman Boyer. The motion carried by the
following vote: Ayes: Councilmen Boyer, Boyett, Halpin, Fitch; Noes: None.
The Mayor announced that the ordinance had been finally passed.
The Ordinance is as follows:
ANOIWINAN E
BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS,
AUTHORIZING THE ISSUANCE OF CITY OF COLLEGE STATION
WATERWORKS AND SEWEN. SYSTEM REVENUE BONDS, SERIES II OF
1951, CONSTITUTING THE SECOND SERIES OF BONDS ISSUED BY
THE CITY OF COLLEGE STATION OUT OF AN ISSUE IN THE TOTAL
PRINCIPAL AMOUNT OF $200,000, AUTHORIZED AT AN ELECTION HELD
IN SAID CITY ON JANUARY 8, 1951, FOR THE PURPOSE OF SECURING
FUNDS WITH WHICH TO BUILD AND PURCHASE IMPROVEMENTS AND ERTEN_
SIONS TO THE WATERWORKS SYSTEM AND THE SEWER. SYSTEM OF SAID CITY;
PRESCRIBING THE FORM OF THE BONDS AND THE INTEREST COUPONS;
PLEDGING THE REVENUES OF THE WATERWORKS SYSTEM AND SEWER SYSTEM
TO PAY THE PRINCIPAL OF AND INTEREST ON SAID BONDS AFTER
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August 18, 1951
Page Three
MAKING PROVISION FOR THE EXPENSE OF OPERATING SAID SYSTEM;
MAKING CERTAIN COVENANTS OF SAID CITY WITH REJI!atENCE TO THE
BOND FUND FROM WHICH SAID PRINCIPAL AND INTEREST ARE TO BE
PAID; PROVIDING THAT THE HOLDER OR HOLDERS OF SAID BONDS
SHALL NEVER HAVE THE RIGHT TO DEMAND PAYMENT OF SAID OB-
LIGATIONS OUT OF ANY FUNDS RAISED OR TO BE RAISED BY
TAXATION; REPEALING ALL ORDINANCES, RESOLUTIONS AND
ORDERS IN CONFLICT HEREWITH; AND DECLARING AN EMERGENCY.
WHEREAS, the City Council of the City of College Station, Texas,
has heretofore on the llth day of December, 1950, adopted a resolution
and order calling an election on the questions of the issuance of
revenue bonds of the City of College Station in the amount of
*70,000.00, bearing interest at a rate not to exceed three and
one-half (3-1/2%) per cent per annum, and maturing serially over
a period of years not to exceed thirty (30) years from their date,
for the purpose of securing funds with which to build and purchase
improvements and extensions to the electric light system of said
City; and the issuance of revenue bonds of the City of College
Station in the amount of $20,000.00, bearing interest at a rate
not to exceed three and one-half (3-1/2%) per cent per annum, and
maturing serially over a period of years not to exceed thirty
(30) years from their date, for the purpose of securing funds with which
to construct improvements and extensions to the waterworks system of
said City; and the issuance of revenue bonds of the City of College
Station in the amount of *110,000.00 bearing interest at a rate not
to exceed three and one-half (3-1/2%) per cent per annum and maturing
serially over a period of years not to exceed thirty (30) years from
their date, for the purpose of securing funds with which to construct
improvements and extensions to the sewer system of said City; and
WHEREAS, said election was held pursuant to said resolution and
order, and in accordance with law, on the 8th day of January, 1951,
and resulted favorably to the issuance of said revenue bonds; and
WHEREAS, the City Council has heretofore adopted a resolution
declaring the result of said election and determining the specific
authority of the City to issue said bonds; and
WHEREAS, by ordinance adopted on the 12th day of February, 1951,
as amended by ordinance adopted on the 12th day of March, 1951, the
City Council authorized the issuance of $60,000.00 of the bonds so
authorized at said election, suchbonds being known as CITY OF COLLEGE
STATION WATERWORKS AND SEWER SYSTEM REVENUE BONDS, dated February 1,
1951, which bonds were duly approved by the Attorney General of the
State of Texas on March 21, 1951,. (#3506, Book #9), and registered by the
State Comptroller (Register No. 27373), and sold and delivered; and
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August 181 1951
Special City Council Meeting
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WHEREAS, the City Council now deems it advisable to construct
certain extension and Improvements to the electric light system
and to the waterworks system of the City and to finance name by the
issuance and sale, of 00,000 of bonds so authorized at said election
held on January 8, 1951; and
WHERIAS, the City Council find and determines that the
revenues of the waterworks and sewer system for a period of twelve
12) monthimmediately preceding the adoption of this ordinance,
after deducting the reasonable cost of operating and maintaining the
System, are equal to at least la time the average annmi requirements
of principal and interest on the outstanding bonds of the Waterworks and
Sewer System Revenue Bonds, dated February 1, 1951, and the additional
bonds to be issued and sold at this time; and that all required payments
into the i3ond Fund of such issue payable from the revenues of the Water-
works and sewer system have been made; and
HEREAS, it is now necessary and proper that the City Council pro-
ceed with the issuance of such additional bond;
BE IT ORDAINED 13Y THE CITY COUNCIL CF THE CITY OF COLLEGE STATION,
TEXAS:
1.
That pursuant to the Constitution and SLatutes of the State of Texas,
including particularly Articles 1111 - 1,1,18, both inclusive, of the
Revised Civil Statutes of Texas, 19251 as amended; and in accordance with
the election held for that purpose, there shall be issued CITY OF COLLEGE
STATION WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES IJ or 1951,
to be numbered consecutively from 1 to 30, inclusive, in the denomination
of One Thousand (000o0.00) Dollars each, aggregating Thirty Thousand
(00,000.00) Dollars; said bonds constituting the second series 3ssned
by the City of College Station out of an issue in the total principel
amount of 1;200,000.00, authorized at an election bold in said City
on January 8, 1951, for the purpoee of securing funds with which to
build and purchase improvements and extensions to the electric light
system) and construct improvements and extensions to the waterworks system
and the sewer system of said City0
That said bonds shall be dated AuguEt 1, 1951, and shall bear
interest from date until paid at the rate of three and one-holf (3-1/2%)
per cent per auxin; rioterant shall be payable February 1, 1952 and
semiannually thereafter on August lot and February lot in each year
such interest to be evidenced by proper coupons attached to each of
said bonds; the principal of and interest or said bonds shall be payable
0033z
STANL'ARD B & P
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Special City Council Meeting
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Page Five
in lawful money of the United States of America upon presentation and
surrender of the bonds or proper coupons at the College Station State
Bank, College Station, Texas, or at Dallas National Bank, Dallas, Texas,
at the option of the holder.
That said
AND NUMB
1
2
3
4
5
6
7
89
10
11 - 12
13 - 14
15 - 16
17 - 18
19 - 20
21 - 22
23 - 24
25 - 26
27 - 28
29 --30
III.
bonds shall mature as follows:
with Bonds Nos. 21
or on any interest payment date thereafter.
bauziEugaza aftmul,a
February 1, 1952
February 1, 1953
February 1, 1954
February 1, 1955
February 1, 1956
February 1, 1957
February 1, 1958
February 1, 1959
February 1, 1960
February 1, 1961
February 1, 1962
February 1, 1963
February 1, 1964
February 1, 1965
February 1, 1966
February 1, 1967
February 1, 1968
February 1, 1969
February 1, 1970
February 1, 1971
$ 1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000,
1,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
t� 30, inclusive, optional on February 1, 1966,
IV.
That each of said bonds shall be signed by the Mayor and countersigned
by the City Secretary, and the corporate seal of the City of College
Station, Texas, shall be impressed upon each of said bonds. That the fac-
simile signatures of the Mayor and City Secretary may be printed, engraved
or lithographed upon the coupons attached to said bonds and shall have
the same effect as if they had been signed by said officials.
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V.
That the form of said bonds sha]] be substantially as follows:
NO._ $1,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF BRAZOS
CITY OF COLLEGE STATION WATERWORKS AND SEWER SYSTEM
REVENUE BOND
SERIES II OF 1951
THE CITY OF COLLEGE STATION, in the County of Brazos, in
the State of Texas, FOR VALUE RECEIVED, hereby acknowledges itself
indebted to and promises to pay to the bearer, solely from the
special funds hereinafter specified, the sum of
ONE THOUSAND DOLLARS
($1,000.00), in lawful money of the United States of America, on the
1st day of February, 19 ,, and to pay interest thereon from date
hereof at the rate of three and one-half (3-1/2%) per cent per annum,
payable February 1, 1952 and semi-annually thereafter on August 1st
and February 1st in each year, until the principal sum shall be paid,
upon the presentation and surrender of proper coupons
as
CollegeStation
become due; both principal and interest being payable at
State Bank, College Station, Texas, or at Dallas National Bank, Dallas,
Texas, at the option of the holder.
THIS BOND is one of a series of thirty (30) bonds, numbered
consecutively from One (1) to Thirty (30), inclusive, in the denomination
of One Thousand ($1,000.00) Dollars each, aggregating Thirty Thousand
($30,000.00) Dollars, constituting the second series of bonds issued
by the City of College Station out of an issue in the total principal
amount of $200,000.00 authorized at an election held in said city on
January 8, 1951, for the purpose of securing funds with which to build
and purchase improvements and extensions to the electric light system,
and construct improvements and extensions to the waterworks system and
the sewer system of said City, in accordance with the Constitution.
and Laws of the State of Texas, including particularly Articles 111]. - 1118,
003 S4
Special City Council Meeting
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Page seven
both inclusive, of the Revised Civil Statutes of Texas, 1925, as amended,
the authority of a vote of the qualified electors of the City of College
Station, who owned taxable property in said City and who had duly rendered
the same for taxation, voting at an election held on the 8th day of
January, 1951, and pursuant to an ordinance passed by the City Council
of The City of College Station, Texas, duly recorded in the Minutes of
the City Council;.
The date of this bond, in conformity with said ordinance, is August 1,
1951.
This bond, and the series of which it is a part, together with the
outstanding City of College Station Waterworks and Sewer System Revenue
Bonds, dated February 1, 1951, constitute special obligation of the
City of College Station, Texas, payable solely from and secured by an
exclusive first lien on and pledge of the revenues of the waterworks and
sewer system of said City, after deduction of reasonable operation and
maintenance expenses provided, that the remaining bonds in the
aggregate amount of $110,000.00, authorized at said election held on the
8th day of January, 1951, when and if issued and sold shall be on a
parity with the bonds of this series, and the aforementioned Waterworks
and Sewer System Revenue Bonds, dated February 1, 1951.
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 of College Station reserves the right to redeem this bond
on February 1, 1966, or on any interest payment date thereafter, by
paying principal and accrued interest thereon, and in the event same
is called for redemption prior to its maturity, notice thereof in writing
shall be given by the City Secretary to the College Station State Bank,
College Station, Texas, and to Dallas National Bank, Dallas, Texas,
at least thirty (30) days prior to the date fixed for redemption, and
notice shall also be given by publication of a copy of said notice in
a financial journal published in the State of Texas one time at least
thirty (30) days prior to the date fixed for redemption; and should
this bond not be presented for redemption, it shall cease to bear
interest from and after the date so fixed for redemption.
(01TO PRINTER: The above paragraph applies only to
Bonds NOS. 21 to 30, inclusive).
AND IT IS HEREBY CERTIFIED THAT the issuance of this bond
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Special City Council Meeting
August 18, 1951
Page eight
and the series of which it is a part, is duly authorized by law;
that all acts, conditions and things required to exist and to be
done precedent to and in the issuance of this bond to render the
same lawful and valid, have been properly done, have happened and been
performed in regular and due time, form and manner as required by the
Constitution and Laws of the State of Texas, and the ordinance herein-
above mentioned, and that this series of revenue bonds does not exceed
any constitutional or statutory limitation; and that provision has been
made for the payment of the principal and interest of this bond and the
series of which it is a part., by irrevocably pledging the revenues
of the waterworks and sewer system of the City of College Station, Texas
IN TESTIMONY WHEREOF, the City Council of the City of College
Station, Texas, has caused the seal of said City to be impressed hereon,
and this bond to be signed by the Mayor of said City, countersigned
by the City Secretary, and has caused the annexed interest coupons
to be signed by the facsimile signatures of the Mayor and City Secretary
COUNTERSIGNED:
VI.
Mayor, City of College Station,Texas
City Secretary, City of College
Station, Texas
That the form of said coupons attached to said bonds shall
be substantially as follows:
NO.
ON THE 1ST DAY OF
19 •
The City of College Station, Texas, will pay to bearer out of
funds specified in the bond to which this coupon is attached at the
College Station State Bank, College Station, Texas, or at Dallas
National Bank, Dallas, Texas, at the option of the holder, the sum of
) Dollars, said sum being _
months' interest due that day on CITY OF COLLEGE STATION WATERWORKS AND
SEWER SYSTEM REVENUE BOND, SERIES II OF 1951, NO.�, dated August 1, 1951,
to which this coupon is attached and is a part thereof. 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.
oo
Mayor, City of College Station, Texas
ity, ecretary,y off` Cho lege Station,
Texas
August 18, 1951
Special City Council Meeting
Page Ten
VII.
360
That substantially the following certificate shall be printed on the
back of each bond:
OFFICE OF COMPTROLLER
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 Constitutioi and
Laws of the State of Texas, and that it is valid and binding special
obligation of said City of College Station, Texas, payable from the
revenues pledged to its payment by and in the ordinance authorizing same,
and said bond has this day been registered by me.
WITNESS MY HAND and seal of office at Austin, Texas, this _____�
Comptroller of Public Accounts of
The State of Texas
VIII.
In this ordinance the term "system" shall include and mean the
waterworks system and the sewer system of said City, together with an
additions and extensions thereto and improvements and replacements
thereof.
IX.
The City Council shall at all times, while any of said bonds or any
interest thereon are outstanding and unpaid, charge and collect for
services rendered by said System, rates sufficient to pay all maintenance,
depreciation, replacement, betterment, and interest charges, and for
Interest and Sinking Fund sufficient to pay the interest and principal
of said bonds as such principal and interest matures and accrues and
any outstanding indebtedness against the System, as is required by
Article 1113, Revised CivlStatutecsof �and 1925, and
benefit of
thereto.
For the benefit of the original per'haser,
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Special City Council Meeting
August 18, 1951
Page eleven
t
any. and all subsequent holders of said bonds, coupons, or any part thereof,
[ and in addition to all other provisions and covenants in the laws of
the State of Texas and in this ordinance, it is expressly stipulated:
A. �: The City shall fix and maintain rates and collect charges
OL.,
as for the facilities and services afforded by the System which .will provide
PO revenues sufficient at all times:
0 (1) To pay all operation, maintenance, depreciation, replacement
and betterment charges of the System.
0
Z. (2) To establish and maintain the Bond Fund.
F-(3) To pay all outstanding indebtedness against the
Ul System, other than bonds, as and when the same
become due. Provided also, that no free service
of. the System shall be allowed, and should the
City or any of its agencies or instrumentalities
make use of the services and facilities of the
System, payment of the reasonable value thereof
shall be made by the City,out of funds derived
from sources other than the revenues and income
of the System.
TANDARD b&P
B. USF T45: The City will deposit as collected all revenues
derived from the operation of the System into a separate account (herein
called the "System Fund") which shall be kept separate and apart from
all other funds of the City. The System Fund shall be administered as
follows:
(1) Frond d: From the funds in the System Fund, the City
shall pay into the Bond Fund during each year in which any of the bonds
herein authorized and the Waterworks and Sewer System Revenue Bonds,
dated February 1, 1951, are outstanding, commending with the date
of the delivery of the bonds herein authorized to the purchasers thereof,
an amount equal to 100 per centum of the amounts required to meet the
interest and principal payments falling due on or before the next maturity
date of the bonds. In addition to such payment, the City shall pay
into the Bond Fund from the System Fund in each year twenty (20%) per
centum of the above required amount until such time as there is in the
Bond Fund 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 payments on the bonds for one year thereafter.
00368
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Special
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Special City Council Meeting
August 18, 1951
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The amount required to be paid into the Bond Fund in each year shall
be paid in substantially equal monthly payments from the moneys in the
System Fund, after deductions have been made for paying the reasonable
cost of the operating and maintaining of the System for such month.
If the revenues of the System in any month, after deductions for operation
and maintenance, are insufficient to make the required payment into the
Bond Fund, then the amount of any deficiency in the payment shall be
added to the amount otherwise required to be paid into the Bond Fuxid
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 payment of interest on and principal of the bonds until there has
been accumulated in the Bond Fund, as.a reserve for contingencies, an
amount sufficient to service the bonds for one year. The moneys in the
Bond Fund shall be used solely for the purpose of paying interest on
and principal of the bonds until all the bonds have been retired; provided,
that, when the total in the Bond Fund is equal to the aggregate principal
amount of the bonds outstanding plus accrued interest thereon, the moneys
in the Bond Fund may be used to purchase said bonds at a price, exclusive
of accrued interest, not exceeding the principal amount thereof, or to
redeem said bonds in accordance with the redemption provision contained
in Section III of this ordinance. The moneys paid into the Bond Fund
shall be deposited in a bank or banks and shall be continuously secured
by a valid pledge to the City of Direct obligations of the United
States of America, having an aggregate market value, exclusive of
accrued interest, at all times at least equal to such Bond Fund. The
Bond Fund, at the option of the City, may be invested in such direct
obligations of the United States of America and deposited in escrow under
an escrow agreement. If such funds are so invested and deposited
in escrow, the City shall have the right to have sold through the escrow
agent on the open market a sufficient amount of said securities in order
to meet its obligations of principal and interest in event it does not
have sufficient funds, uninvested, on hand for such purpose. Under such;
circumstances, the Mayor is hereby authorized, ordered and directed to
give fifteen days notice to such escrow agent of the necessity to sell
said securities on the Open market. After such sale, the moneys resulting
therefrom shall belong to the Bond Rind and shall be available to pay such
obligations of principal and interest.
(2) L1 g1; Any funds remaining in the System Fund, after pro-
vision for the reasonable cost of operating and maintaining the system,
and after paying the amounts required to be paid into the Bond Fund hereto-
fore established for the CITY OF COTT,FGE STATION WATERWORKS AND SEWER SYSTEM
REVENUE BONDS, dated February 1, 1951, under the terms and provisions of
the ordinance authorizing said bonds, and after paying the amounts required to
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Special City Council Medting
August, 1S, 1951
be paid into the Bond Fund as above provided, of the issue herein
authorized, may be used by the City for the purchase of said bonds
at not exceeding the principal amount thereof (exclusive of accrued
interest) or for redeeming said bonds in accordance with the redemption
provision contained in Section III of this ordinance, or for any other
purpose permitted by law.
C. i IONATL BONnS: unbrancc- and Sale. While any of the bonds
are outstanding, the City shall not issue any additional bonds (other
than the remaining $$110,000.00 of bonds authorized at the election
held on January 8, 1951, as hereinafter provided) payable from the
revenues of the System unless the lien of such bonds payable from
the revenues of the System is made junior and subordinate in all
respects to the lien of the bonds herein authorized. In no event,
while any of said bonds are outstanding, will the City mortgage or
otherwise encumber the System or any part thereof, or sell, lease or
otherwise dispose of any substantial portion of such System. These
provisions shall inure to the benefit of and be enforceable by the
holder of any of the bonds.
It is understood and agreed that the bonds herein authorized shall
be on a parity with the series of City of College Station Waterworks
and Sewer System Revenue Bonds, dated February 1, 1951, heretofore
authorized and issued.
The remaining bonds authorized at said election held on January 8,
1951, in the total aggregate amount of $110,000.00 may be issued and
sold by the City and such bonds when issued and sold shall be on a parity
with the bonds herein authorized and with the series of Waterworks and
Sewer System Revenue Bonds, dated February 1, 1951, heretofore authorized
and issued, provided, however, that the City shall not issue and sell any
of such remaining bonds authorized at said election held on January 8,
1951, until such time as the revenues of the System for a period of
twelve (12) months immediately preceding the sale of such remaining bonds,
after deducting the reasonable cost of operating and maintaining the
System, are certified by an Engineer of the City's choice, who is regis-
tered by the State Board of Registration for Professional Engineers of
the State of Texas, to be equal to at least 1.4 times the average
annual requirements of principal and interest nn the outstanding bonds
of the aforementioned Waterworks and Sewer System Revenue Bonds, dated
February 1, 1951, and such additional bonds authorized at said election to
be so issued and sold, and in addition thereto, the City shall have made
all required payments into the Bond Fund.
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Special City Council Meeting
August 18, 1951
Page fourteen
D. V: ► DI► : ► ;_► 0 • • aI; 4 • ► : The City shall maintain the System
in good condition and operate the same in an efficient manner and
at a reasonable cost. So long as any of the bonds are outstanding,
the City agrees to maintain insurance for the benefit of the holder
or holders of the bonds, on the System, of a kind and in an amount
which usually would be carried by private companies engaged in a
similar type of business. Nothing in this ordinance shall be con-
strued as requiring the City to expend any funds which are derived
from sources other than the operation of the System, but nothing herein
shall be construed as preventing the City from doing so.
E. ACCOVNTS AND P1+'.RTODT . STATEMENTS: The City shall keep proper
books of records and accounts (separate from all other records and
accounts) in which complete and correct entries shall be made of
all transactions relating to the System. The City shall furnish
to any holder of any of the bonds, at the written request of such
holder, not more than thirty days after the close of each six months'
fiscal period, complete operating and income statements of the System
in reasonable detail covering such six months' period, and, not more than
sixty days after the close of such fiscal year, complete financial state-
ments of the System in reasonable detail covering such fiscal year,
certified by the City's Auditor.
F. INSPECTION: Any purchaser of 25 per centum in aggregate
principal amount of the bonds at the time then outstanding or any
holder or holders of 25 per centum of said amount of outstanding
bonds shall have the right at all reasonable times to inspect the
System and all records, accounts and data of the City relating thereto.
G. IN O _,RMATION: Upon written request, the City will furnish to any
purchaser of 25 per centum of the bonds such financial statements and
other pertinent information and data relating to the City and System
as such purchaser from time to time may reasonably require.
H. Lgw..Off , OBIs Upon request, the City will furnish to
any purchaser of holder of 25 per centum of the bonds, information
for the preparation of a bond circular in customary form, signed by the
proper officials of the City, containing such data as such purchaser or
holder may reasonably request concerning the City and the System.
X.
The Mayor, City Secretary andCity Treasurer are hereby instructed
and directed to do any and all things necessary and/or convenient in
reference to the installing and maintaining of a complete system of
records and accounts pertaining to said System and to make the moneys avail-
able for the payment of said revenue bonds in the manner provided by
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Special City Council Meeting
August 18, 1951
Page fifteen
Chapter 122, Acts of the Regular Session of the Forty-third Legislature
of Texas, effective May 12, 1933. In aecordance with the provisions of
Article 1113, Revised Civil Statutes of Texas, as amended, the fiscal
year for the operation of such System shall be July 1st to June 30th
of each year,
XI.
The City further covenants by and through this ordinance as follows:
(a) That the revenue bonds authorized hereunder shall be special
obligations of the City and the holder thereof shall never have the
right to demand payment thereof out of funds raised or to be raised by
taxation,
(b) That it has the lawful power to pledge the revenues supporting
this issue of bonds and has lawfully exercised said power under the Con-
stitution and Laws of the State of Texas, including the power existing
under Articles 1111 - 1118, both inclusive, 1925, Revised Civil Statutes
of the State of Texas, with amendments thereto, and by authority of
a vote of the qualified electors of said City voting at an election
held in said City on January 8, 1951; that the bonds issued hereunder
shall be ratably secured under said pledge of income in such manner
that one bond shall have no preference over any other bond of
this issue.
(c) That other thanfor the payment of the bond herein. provided for,
and for the payment of the City of College Station Waterworks and Sewer
System Revenue Bonds, dated February 1, 1951, heretofore authorized and
issued, the rents, revenues and income of the said system have not been
pledged in any manner to the payment of any debts or obligations of the
City, nor of said System.
XII.
It shall be the duty of the Mayor to submit the record of said bonds
and the bonds to the Attorney General of the State of Texas for approval
and thereafter to have then registered by the Comptroller of Public
Accounts of the State of Texas. When said bonds have been registered
by the State Comptroller, the State Comptroller is hereby authorized
and instructed to deliver the bonds to the American National Bank,
Austin, Texas, whore they will be taken up and paid for by the purchasers.
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Special City Council Meeting
August 18, 1951
Page sixteen
XIII.
716!.0
By reason of the fact that the City Council of the City of College
Station, Texas, considers the passage of this ordinance and the
issuance of said bonds necessary for the preservation of the public
health and safety of the citizens of said City, it is hereby
declared to be an emergency measure demanding that the
rule requiring ordinances to be read at more than one meeting
of the City Council be suspended, and that this ordinance take effect
immediately from and after its passage, and it is so ordained.
PASSED AND APPROVED, this 18th day of August, 1951.
Mayor, City of ColleSta ion, Texas
ATTEST:
City Secretary
003'73