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HomeMy WebLinkAbout1976-1026 - Ordinance - 06/02/1976�-r ORDINANCE NO. 1026 ORDINANCE DECLARING THE INTENTION OF THE CITY COUNCIL TO TAKE ADVANTAGE OF ARTICLE 1106, V.T.C.S., IN CONNECTION WITH PROPOSED UTILITY SYSTEM TAX BONDS; AND DECLARING THAT SAID ORDINANCE SHALL BE EFFECTIVE IMMEDIATELY UPON ADOPTION WHEREAS, the City Council of the City of College Station, Texas, has duly adopted Ordinance No. 1025, dated June 2, 1976, calling a bond election to be held in and for said City on June 29, 1976, for the purpose of voting on, among others, three propositions for the issuance of tax bonds (hereinafter collectively called the "Utility Tax Bonds") of said City, as follows: (a) Proposition No. 5 providing for tax bonds in the amount of $2,475,000 for the purpose of construct- ing improvements to the City's Waterworks System; and (b) Proposition No. 6 providing for tax bonds in the amount of $2,040,000 for the purpose of construct- ing improvements to the City's Sanitary Sewer Sytem; and (c) Proposition No. 7 providing for tax bonds in the amount of $2,725,000 for the purpose of constructing improvements to the City's Elec- tric Utility System; WHEREAS, Article 1106, of Vernon's Civil Statutes of Texas, as amended, authorizes the City Council to appro- priate and apply the net revenues of its combined Waterworks, Sewer and Electric Light and Power Systems (hereinafter col- lectively called the "Utility System") to the payment of the sinking fund and interest due by the City on its bonded in- debtedness incurred on account of said System; and WHEREAS, the City Council desires to declare its intention to take advantage of said Article 1106 in connection with the payment of the principal of and interest on the Utility -- Tax_Ronds if any of them are authorized to be issued by the voters of the City; Therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLgGE STATION: 0267S Ordinance No. 1026 Section 1: That the terms defined in the preamble of this ordinance shall be, and are hereby made, a part of this ordinance for all purposes. Section 2: That each year while any of the Utility Tax Bonds are outstanding and before passing any ordinance levying taxes for that year the City Council will take advan- tage of the provisions of Article 1106, Vernon's Texas Civil Statutes, as amended, or any like legislation which may be- come effective in the future, by setting aside out of the net revenues of the Utility System and applying such sum as the City Council deems to be in the best interest of the City to the payment of the principal of and interest on the Utility Tax Bonds, or any of them, that falls due during the following year. Section 3: That nothing contained in this ordinance shall be deemed to restrict the ability of any City Council to exercise its independent judgment with respect to the best in- terest of the City in setting aside and applying net revenues of the Utility System for the purpose specified in Section 2 hereof; provided, however, as long as any Utility Tax Bonds are outstanding, no net revenues of the Utility System shall be used in any year for any other purpose unless a sum is appro- priated pursuant to Section 2 which is sufficient to pay in full the principal of and interest on the Utility Tax Bonds for the following year without levying any tax for such purpose. Section 4: That nothing contained in this ordinance shall be deemed to affect in any manner the covenants the City has heretofore made in its outstanding revenue bonds which are secured by a pledge of the net revenues of its Utility System or any part thereof, or to limit in any respect the City's freedom in the future to issue and sell additional revenue bonds on a parity with such outstanding bonds, or junior lien bonds or other evidences of indebtedness secured by a pledge of or lien on the revenues of the Utility System or any part thereof. I -2- Ordinance No. 1026 IN Section 5: That the commitment of the City Council contained herein is expressly made with the intention that it will be binding upon the present and any future City Council if the Utility Tax Bonds, or any of them, are approved by a majority of voters in the City at the bond election to be held on June 29, 1976, but not otherwise. Section 6: That this ordinance shall take effect and be in full force upon and after its adoption. PASSED AND APPROVED this 2nd day of June, 1976. 11 ATTEST: City Sec etary [SEAL) M Lt- P t-�Nte� /Vk-- Mayor, City of College Station, Texas - 3- 0267