HomeMy WebLinkAbout1951-0152 - Ordinance - 02/12/1951ORDINANCE NO. 152
BOND ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS
AUTHORIZING THE ISSUANCE OF $60,000.00 CITY OF COLLEGE STATION
ETFCTRIC LIGHT, WATERWORKS AND SEWER SYSTEM REVENUE BONDS,
FOR THE PURPOSE OF SECURING FUNDS WITH WHICH TO BUILD AND PUR-
CHASE IMPROVEMENTS AND EXTENS IONS TO THE ELECTRIC LIGHT SYSTEM,
AND CONSTRUCT IMPROVEMENTS AND EXTENSIONS TO THE WATERWORKS SYSTEM
AND THE SEWER SYSTEM OF SAID CITY: PRESCRIBING THE FORM OF BOND AND
INTEREST COUPON; PLEDGING THE REVENUES OF THE WATERWORkS
SYSTEM AND SEWER SYSTEM TO PAY THE PRINCIPAL OF AND INTEREST ON
SAID BONDS AFTER PROVIDING FOR THE EXPENSES OF OPERATING SAID
SYSTEMS: MAKING CERTAIN COVENANTS OF SAID CITY WITH REFERENCE
TO THE BOND FUND FROM WHICH SAID PRINCIPALMD INTEREST ARE TO BE
PAID; PROVIDING THAT THE HOLDER OR HOLDERS OF SAID BONDS SHALL
NEVER HAVE THE RIGHT TO DEMAND PAYMENT OF SAID OBLIGATIONS OUT
OF ANY FUNDS RAISED OR TO BE RAISED BY TAXATION: 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 $2031000.00, bearing
interest at a rate not to exceed three and one-half (3-1f2%) 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 systdm
of said City; and the issuance of revenue bonds of the City of College
Station inthe amount of $110,000.00, bearing interest at a rate not to
exceed three and one-half (3-1/2%) per cent per annum, andmaturing
serially over a period of yeqrs not to exceed thirty (30) years from their
date, for the purpose of securing funds with which to construct improvd-
ments and extensions to the sewer system of said City; and
WHEREAS, said resolution and order calling said election provided that
if the three propositions for the issuance of said bonds were adopted, the
City Councilshould have the right to issue combined Electric Light, Water-
works and Sewer System Revenue Bonds in the ma ium amount of $200,000.00,
and to pledge the net revenues of the combined waterworks and sewer system
to the payment of the principal of and interest on said combined Electric
Light, Waterworks and Sewer System Revenue Bonds; and
00332
PI'
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 for the issuance of said bonds by the City of College Station;
and
M
WHEREAS, the City Council now deems it advisable and to the best
interest of said. City that of the bonds so authorized at said election
only $60,000.00 of bonds should be issued at this time, and that said.
bonds should be issued as combined Electric Light, Waterworks and Sewer
System Revenue Bonds; and.
Ir7HHEREAS, it is now necessary and proper that the City Council proceed
with the issuance of such revenue bonds;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLIE GE
STATION, TEXAS
I.
That for the purpose of securing funds with which to build and pur-
chase improvements and extensions to the electric light system, and construct
improvements and extensions to the waterworks sydem and sewer system
of said City, and pursuant to the Constitution and Statutes of the State of
Texas, including particularly Articles 1111 - 111$, both inclusive, of the
Revised Civil Statutes of Texas, 1925, as amended, and in accordance with
the election held for that purpose, there shall be issued CITY OF COLLEGE
STATIGN ELECTRIC LIGHT, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, in the
principal aggregate sum of Sixty Thousand ($60,000.00) Dollars.
II.
That said bonds shall be numbered from One (1) to Sixty (60),
inclusive; shall be of the denomination of One Thousand ($1,000.00) Dollars
each, shall be dated February 1, 1951; Bonds Nos. 1 to 5, inclusive, shall
bear interest from date until paid at the rate of.two and one-half (2-1/2%)
per cent per annum, Bonds Numbers 6 to 20, inclusive, shall bear interest
from date until paid at the rate of two and three-fourths (2-3/4%) per cent
per annum, and Bonds Numbers 21 to 60, inclusive, shall bear interest from
date until paid at the rate of three three (3%) per cent per annum; interest
payable August 1, 1951, and semi-annually thereafter on February 1st and
August 1st in each year, such interest to be evidenced by proper coupons
attached to each of said bonds; that principal of and interest on said
bonds shall be payable 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.
00333
III.
That said bonds shall mature as follows:
Bond Numbers Maturity Dates
po V �-41Lc C
P
Amounts
1 February 1, 1952 $ 1,000
2 February 1, 1953 1,000
3 February 1, 1954 1,000
4 February 1, 1955 1,000
5 February 1, 1956 1,000
6 February 1, 1957 1,000
7 February 1, 1958 1,000
8 February 1, 1959 1,000
9 February 1, 1960 1,000
10 February 1, 1961 1,000
11 - 12 February 1, 1962 2,000
13 - 14 February 1, 1963 2,000
15 - 16 February 1, 1964 2,000
17 - 18 February 1, 1965 2,000
19 - 20 February 1, 1966 2,000
21 - 22 February 1, 1967 2,000
23 - 24 February 1, 1968 2,000
25 - 26 February 1, 1969 2,000
27 - 28 February 1, 1970 2,000
29 - 30 February 1, 1971 2,000
31 - 33 inclusive February 1, 1972 3,000
34 - 36 It February 1, 1973 3,000
37 - 39 " February 1, 1974 3,000
40 - 42 " February 1, 1975 3,000
43 - 45 It February 1, 1976 3,000
46 - 48 " February 1, 1977 3,000
49 - 51 " February 1, 1978 3,000
52 - 54 11 February 1, 1979 3,000
55 - 57 " February 1, 1980 3,000
58 - 60 " February 1, 1981 3,000
With bond numbers 29 to 60, inclusive, optional on February 1, 1966, or on
any interest payment date thereafter.
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 facsimile
signatures of the Mayor and the 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.
00334
No.
V.
That the form of said bonds shall be substantially as follows :
UNIThD STATES OF AMERICA
STATE OF TEXAS
COUNTY OF BRAZOS
CITY OF COLLEGE STATION ELECTRIC LIGHT, WATERWORKS AND SEWER
SYSTEM REVENUE BOND
$1,000
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 ( ,%) per cent per annum,
payable August 1, 1951, and semi-annually thereafter on February 1st
and August 1st in each year, until the principal sum shall be paid,
upon the presentation and surrender of proper coupons as they severally
become due; both principal and interest being payable at College Station
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 Sixty (60) bonds, numbered consecutively
from One (1) to Sixty (60) , inclusive, in the denomination of One Thousand
41,000.00) Dollars each, aggregating Sixty Thousand 460,000.00) Dollars,,
issued by the City of College Station, Texas, for the purpose of securing
funds with which to build and purchase improvements and extensions to the
electric light ststem, and construct improvements qnd 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 1111 - 11.18, 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, Texas who owned taxable property in said
City and who had duly renderedthe same for taxation, voting at an election
held on the 8th da'r 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.
1951.
The date of this bond, in conformity with said ordinance, is February 1,
00335
61/
This bond and the series of which it is a part, constitutes special
obligations of the City of College Station, Texas, payable solely from and
secured by an exclusive first lien on the 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 $140,000.00, authorized at said election held
on the 8th day of January, 1951, when and if isSbed and sold shall be
on a parity with the bonds of this series.
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 ,tation reserves the right to redeem this bond
on February 1, 1966, or on any interest payment date thereafter, by paging
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 rational 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 130)
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.
(NOTE TO PRINTER: The above paragraph applies only to Bonds
Nos. 21 to 60 inclusive).
AND IT IS HEREBY CERTIFIED that the issuance of this bond, 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 have beenperformed in regular
and due time, form and manner as required by the Constitution and Laws
of the State of Texas, and the ordinance hereinabove mentioned, and that
this',series of revenue bonds does not exceed any constitutional or statuatory
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, Teas.
IN TESTIMONY WHEREOF, The City Council of the City of College Station,
Texas, has caused the seal of said City to be hereon impressed, 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:
Mayor, City of College Station,Texas
City Secretary, City of College Station
Tyja336
1
Ordinance No. 152 continued
Page 6
VI.
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 month' interest due that
day on CITY OF COLLEGE STATION ELECTRIC LIGHT, WATERWORKS AND SEWER
SYSTEM REVENUE BOND, no. , dated February 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.
VII.
Mayor, City of College Station,Texas
City Secretary, City of College Station
Texas
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 ori 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 bsr law, and that
he finds that it has been issued in conformity with the Constitution and
Laws of the State of Texas, and that it is a 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.
00337
Ordinance No. 152 continued
Page 7
VIII.
In this ordinance the term "system" shall include and mean the
waterworks system and the sewer system of said City, together with
any additions and extensions thereto and improvements and replacements
thereof.
IX.
The City Council shall at all times, while any bf said bonds or
any interest thereon are outstanding and unpaid, chane 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 Civil Statutes of Texas, 1925, and amendments
thereto. For the benefit of the original purchaser, and for the benefit
of any and all subsequent holders of said bond, 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. RATES: The City shall fix and maintain rates and collect
chargesfor the facilities and services afforded by the System which
will provide revenues sufficient at all times:
(1) To pay all operation, maintenance, depreciation,
replacement and betterment charges of the System.
() To establish and maintain the Bond Fund.
(3) To pay all outstanding indebtedness against the
System, other than bond, 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.
B. USE OF REVENUES: The City will deposit ss 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) From the funds in the System Fund, the City shall pay into
the Bond Fund during each year in which any of the bonds are outstanding,
00338
Ordinance No. 152 continued
Page $
commencing 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 Find 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. The amount required to be paid into the Bond
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 B.nd Fund, then the amount of any deficiency
in the payment shall he added to the amount otherwise'reinired to be
paid into the Bond Fund to 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 FBnd 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 unid into the Band 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 TT._ited Sates of America and deposited
in escrow under an escrow agreement. If such funds -re 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 Fund and shall be available
to pay such obligations of principal and interest.
(2) Surplus: Any funds remaining in the System Fund, after provision
for the reasonable cost of operating and maintaining the System, and after
paying the amounts required to be paid into the Bond Fund, as above provided,
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 re-
deeming said bonds in accordance with the redemption provision conned
in Section III of this ordinance, or for any other purpose permitted by law.
00339
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Ordinance No. 152 continued ?)—
Page 9
)rPage9
C. ADDITIONAL BONDS: Encumbrance and Sale. While any of the bonds
are outstanding, the City shall not issue any additional bonds 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 Systm. These provisions shall inure to
the benefit of and be enforceable.byithe holder of any of the bonds.
The remaining bonds authorized at said election held on January S,
1951, in the total aggregate amount of $140,000.00, 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; 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 average
annual 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 cer—
tified by an Engineer of the City's choice, who is registered 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 on the outstanding bonds of the series herein
authorized 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.
D. MAINTENANCE AND OPERATION: 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 bDnds are outstanding, the City
agrees to maintiin 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 construed 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. ACCOUNTS AND PERIODIC 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 month' 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 statements of the System in reasonable
detail covering such fiscal year, certified by the City's auditor.
0 340
STANDARD B&F
Ordinance No. 152 continued
Page 10
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 instect the System and all records,
accounts and data of the City relating thereto.
G. INFORMATION: Upon written renuest, the City will furnish to
any purchaser of 25 per centum of the bonds such financial statements
and other pertinent inftrmation and data relating to the City and the
System as such purchaser from time to time may reasonably require.
H. SATE OF BONDS: Upon request, the City will furnish any purchaser
or 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 and City 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
available"for ti -e payment of said revenue bonds in the manner provided
by Chapter 122, Acts of the Regular Session of the Forty-third Legislature
of Texas, effective May 12, 1933. In accordance with the Provisions
of Article 1113, Revised Civil Statutes of Texas, as amended, the fiscal
year for the operation of such System shall be to
of each year.
XI
The City further covenants by and through this ordinance ns follows:
(a) That the revenue bonds authorized hereunder shall be special
CD 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
Constitution and L-ws of the State of Texas, including the power existing
under Articles 1111 - 1115, both inclusive, 1925 Revised Civil Statutes
of the State of Texas, with amendments thereto, and by authority of a vote
Ul
of the qualified electors of said City voting at an election held in
said City on January 5, 1951; that the bonds issued hereunder shall be
rat^bly secured under raid pledge of income in such manner th=at one bond
shall have no preference over any other bond of this issue.
(c). That other than for the payment of the bonds herein provided
for, the rentf revenues, and income of the said system have hot been
pledged in any manner to the payment of any debts or oblig-tuns of the
City, nor of said System.
00311
Ordinance No. 152 continued
Page 11
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 them 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
suthorized and instructed to deliver the bonds to the American National
Bank, Austin, Texas, where they will be taken up and Haid for by -the
purchasers.
XIII.
That the sale of the bonds herein authorized to Rowles, Winston
& Co., of houston, Texas, at a price of par and accrued interest to
date of delivery, be, and the same is hereby confirmed, and the Mayor,
City Secretary and City Treasurer are hereby authorized, directed and
instructed to do all things necessary to deliver said bonds to said Rowles,
Winston & Co., at said price of par and accrued interest to date of delivery.
XIV•
By reason of the fact that the City Council of the City of College
Station, Texas, considers the passage iaf this ordinance and the issuance
of said bonds necess^ry for the preservation of the public health and
safety to 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 12th day of February , 1951.
ATTEST:
City Secretary
Mayor, City of CollegStation,
Texas
00312