HomeMy WebLinkAbout1955-0204 - Ordinance - 01/25/19551,10
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THE STATE OF TEXAS
ORDINANCE NO. 204
BOND ORDINANCE
The City Council of the City of College Station, Texas convened in special
session at the City Hall within said City on the 25th day of January, 1955, with
the following members present, to -wit:
Ernest Langford Mayor
J. A. Orr Councilman
M. C. Pugh Councilman
A. P. Boyett Councilman
Ernest Seeger Councilman
G. W. Black Councilman
Joe H. Sorrels Councilman
N. M. McGinnis City Secretary
and the following members absent, to wit: None, when the following business
was transacted:
The Mayor introduced an ordinance which was read in full. Councilman Orr
made a motion that the ordinance be adopted as read. The motion was seconded
by Councilman Sorrels, and carried by the following vote: AYES: Councilmen
Orr, Pugh, Boyett, Seeger, Black, and Sorrels. NOES: None. The Mayor request-
ed that he be recorded as voting tAye'. The ordinance thus adopted follows:
AN ORDINANCE AUTHORIZING THE ISSUANCE OF 5110,000 CITY OF COLLEGE
STATION WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES OF 1955;
DESCRIBING THE TERMS AND CONDITIONS THEREOF; AND MAKING PROVISION
FOR THE PAYMENT OF PRINCIPAL AND INTEREST THEREON
WHEREAS, the City Council of the City of College Station, Texas on the llth
day of December, 1950, adopted a resolution and order on the question of the
issuance of revenue bonds of said City in the amount of $70,000.00 for the pur-
pose of securing funds with which to build and purchase improvements and extens-
ions to the electric light system of said City; the issuance of revenue bonds
of said City in the amount of $20,000.00 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 said City in the amount of $110,000
for the purpose of securing funds with which to construct improvements and
extensions to the sanitary sewer system of said city, all.said bonds to bear
interest at a rate not to exceed Three and one-half (3-1/2%) per cent per annum
and to mature serially over a period of years not to exceed 30 years from their
date; 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 duly adopted a resolution declaring the results
of said election and determined the specific authority of the City to issue
said bonds; and
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WHEREAS, it was provided in said resolution and order calling said election
that if the three propositions were adopted, the City Council should have the
right to issue combined revenue bonds and to pledge the net revenues of the
combined waterworks and sewer system to the payment of the principal of and
interest on said revenue bonds; and
WHEREAS, two previous installments of said bonds have been authorized by
the City Council and approved by the Attorney General of Texas and registered by
the Comptroller of the State of Texas, to—wit: 60,000 City of College Station
Waterworks and Sewer System Revenue Bonds, dated February 1, 1951, and $30,000
City of College Station Waterworks and Sewer System Revenue Bonds, Series II,of
1951, dated August 1, 1951; and
WHEREAS, the City Council now deems it advisable to issue the remaining
110,000 of voted bonds to carry out the voted purpose; and
WHEREAS, the City Council finds and determines that the revenues of the water—
works and sewer system for a period of twelve months immediately preceding the
adoption of this ordinance, after deducting the reasonable cost of operating and
maintaining the System are equal to at least 1.4 times the average annual require—
ments of principal and interest on the outstanding bonds of the two previous install—
ments of bonds, and the additional bonds to be issued and sold at this time; and
that all required payments into the bond fund of such issues payable from the
revenues of the waterworks and sewer system have been made; and
WHEREAS, it is now necessary and proper that the City Council proceed with the
issuance of such additional bonds. Therefore
BE TT ORDAINED BY THE CITY COUNCIL OF THE C 1TY OF COLLEGE STATION:
Section 1: That pursuant to the Constitution and statutes of the State of
Texas, including particularly Articles 1111 to 1118, both inclusive, of Vernonts
Texas Civil, Statutes, 1925, as amended, and the charter of the City of College
Station, and in accordance with the election held for the purpose, there shall
be issued the bonds of said City in the principal sum of One Hundred Ten Thousand
Dollars ($110,000.00), to be known and designated as "CITY OF COLLEGE STATION
WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES OF 1955", to be numbered con—
secutively from One (1) to One Hundred Ten (110), both inclusive, in the denomina—
tion of One Thousand Dollars ($1,000.00) each, aggregating One Hundred Ten Thousand
Dollars 0110,000.00); said bonds constituting the third and final installment or
series issued by the City of College Station out of an issue in the total principal
amount of Two Hundred Thousand Dollars ($200,000.00), authorized at an election held
within 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 sewer system of
said City.
Section 2: Said bonds shall be dated February 1, 1955 and shall bear interest
from date as follows: Bonds Nos. 1 to 40, both inclusive, at the rate of 2-3/4%
per annum, and Bonds Nos. 41 to 110, both inclusive, at the rate of 3-1/2% per annum;
interest shall be payable August 1, 1955 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; the principal of and interest on said bonds shalt 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 the Dallas National Bank, Dallas, Texas, at the option of the
holder.
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Section 3: That said bonds shall mature serially on February 1st in each
of the years and in the respective amounts shown in the following schedule,
to wit:
Bonds NumTered Maturity Amount
1 --2 1956 $2,000.00
3 - 4 1957 2,000.00
5 - 6 1958 2,000.00
7 - 8 1959 2,000.00
9 - 10 1960 2,000.00
11 - 13 1961 3,000.00
14 - 16 1962 3,000.00
17 - 19 1963 3,000.00
20 - 22 1964 3,000.00
23 - 25 1965 3,000.00
26 - 28 1966 3,000.00
29 - 31 1967 3,000.00
32 - 34 1968 3,000.00
35 - 37 1969 3,000.00
38 - 40 1970 3,000.00
41 - 44 1971 4,000.00
45 - 48 1972 4,000.00
49 - 52 1973 '4,000.00
53 - 56 1974 4,000.00
57 - 60 1975 4,000.00
61 - 64 1976 4,000.00
65 - 68 1977 4,000.00
69 - 72 1978 4,000.00
73 - 77 1979 5,000.00
78 - 82 1980 5,000.00
83 - 87 1981 5,000.00
88 - 92 1982 5,000.00
93 - 101 1983 9,000.00
102- 110 1984 9,000.00
,Section 4.: That the City of College Station expressly reserves the right
to redeem for refunding purposes only all the then outstanding bonds of this
issue on any interest payment date prior to 15 years from the bond date if
the following conditions are met:
(a) All bonds then outstanding payable from the net revenues of the
waterworks system, sanitary sewer system, and/or electric light and power
system, or from the net revenues of any combination of such systems, are to
be refunded in accordance with then existing maw into one issue of bonds pay-
able from the net revenues of the waterworks system, sanitary sewer system,
and electric light and power system; and
(b) Those bonds of the refunding bond issue which are to be exchanged
for the bonds authorized by this ordinance bear the same interest rate or
rates and maturity date or dates as the underlying bonds to be so refunded
and exchanged.
If the conditions outlined in (a) and (b) are met, and notice of the
redemption is given as provided hereafter in Section 6, the holder and owner
of any such bond or bonds shall surrender the same and accept in lieu and
exchange thereof a refunding bond or bonds authorized as above provided.
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Section 5: The City of College Station also expressly reserves the right to
redeem all or any part of the bonds authorized by this ordinance then outstanding,
for any lawful purpose, on any interest payment date on and after 15 years from
the date of said bonds by paying to the owners and holders thereof a price of par
value of the bonds so redeemed plus accrued interest to the date fixed for redemp-
tion.
Section 6: As to any bonds redeemed under either Section 4 or Section 5, notice
in writing thereof shall be given to the banks at which said bonds are payable, and
said notice shall be published at least one (1) time in a financial journal pub-
lished and of general circulation iri the United States of America, Which notice
shall be mailed to said banks and published in said journal at least 30 days prior
to the date fixed for redemption. When said bonds have been called for redemption
under either Section 4 or Section 5 above and notice thereof has been given as here-
in specified, and due provision has been made to redeem the same, the owners' and
holderst right to collect interest on said bonds which would otherwise accrue after
the redemption date shall terminate as of the date fixed for redemption.
,Section 7: That each of said bonds shall be signed by the Mayor and counter-
signed by the City Secretary, and the corporate seal of the City shall be impress-
ed upon each of them. That the facsimile signatures of the Mayor and City Secre-
tary 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 such officers.
Section g: That the form of said bonds shall be substantially as follows:
NO.
UNITED STATES OF AMERICA
STATE OF TEXAS
C OUNr Y OE BRAZ OS
CITY GE COLLEGE STATION WATERWORKS AND SEWER
REVENUE BOND
SERIES OF 1955
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 sura 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 annum, payable August 1, 1955 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 One Hundred Ten (110) bonds, numbered con-
secutively from One (1) to One Hundred Ten (110), inclusive, in the denomination
of One Thousand Dollars M, 000.00) each, aggregating One Hundred Ten Thousand
Dollars (010,000.00), constituting the third and final 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
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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 1111 - 1118, both inclusive, of Vernon's Texas Civil
Statutes, 1925, as amended, the charter of said City, and 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 tax-
ation, voting at an election held on the 8th day of January, 1951, and pur-
suant 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 February
1, 1955.
This bond, and the series of which it is a part, together with the out-
standing City of College Station Waterworks and Sewer System Revenue Bonds,
dated February 1, 1951, and the outstanding City of College Station Water-
works and Sewer System Revenue Bonds, Series II of 1951, dated August 1, 1951,
constitute special obligations of the City of College Station, Texas payable
solely from and secured by a first lien on and pledge of the revenues of the
waterworks and sewer system of said City, after deduction of reasonable opera-
tion and maintenance expenses.
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 expressly reserves the right to redeem for
refunding purposes only all the then outstanding bonds of this issue on any
interest payment date prior to fifteen (15) years from the date of said bonds,
but only pursuant to and subject to the restrictions and limitations contained
in the ordinance authorizing this issue of bonds, to which reference is here-
by made for allparticulars, and the holder or owner of this bond by the
acceptance thereof expressly agrees to the provisions of said ordinance. Said
City also expressly reserves the right to redeem all or any part of the bonds
authorized by this ordinance then outstanding, for any lawful purpose, on any
interest payment date on and after fifteen (15) years from the date of said
bonds by paying to the owners and holders thereof a price of par value of the
bonds so redeemed plus unpaid accrued interest to the date fixed for redemption.
As to any bonds redeemed, notice in writing thereof shall be given to the
banks at which said bonds are payable, and said notice shall be published at
least one (1) time in a financial journal published and of general circulation
in the United States of America, which notice shall be mailed to said banks
and published in said journal at least thirty (30) days prior to the date fixed
for redemption. When said bonds have been called for redemption and notice
thereof has been given as herein specified, and due provision has been made to
redeem the same, the owners' and holders' right to collect interest on said
bonds which would otherwise accrue after the redemption date shall terminate
as of the date fixed for redemption.
The City expressly reserves the right to issue additional parity bonds
payable from the net revenues of City's waterworks and sewer system, and
such additional bonds, when issued, may be on a parity with the bonds of this
issue, but only pursuant to and subject to the restrictions, covenants, and
limitations contained in the ordinance authorizing this issue of bonds, to
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which reference is made for all particulars.
AND Ir 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 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 hereinabove 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:
Mayor, City of College Station, Texas
City Secretary, City of College
Station, Texas
*(Bonds Nos. 1 to 40, both inclusive, at the rate of 2-3/4% per annum;
and
Bonds Nos. 41 to 110, both inclusive, at the rate of 3-1/2% per annum.
Section 9: That the form of said coupons attached to said bonds shall
be substantially as follows:
NO.
On the 1st day of , 19 , unless the bond to
which this coupon is attached has been called for redemption and due pro-
vision made to redeem same, 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 OF 1955, NO.
dated February 1, 1955 to which this coupon is attached and is a part thereof.
The holder hereof shall never have the right to demand payment of this obliga-
tion out of any funds raised or to be raised by taxation.
Mayor, City of College Station, Texas
City Secretary, City of College Station
Texas
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Section 10: That substantially the following certificate shall be printed
on the back of each bond:
OFFICE OF COMP'T'ROLLER 0
STATE OF TEXAS
REGISTER NO.
I hereby certify that there is on file and of record in my office a cer-
tificate 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 Constitution 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 reg-
istered by me.
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas, this
Comptroller of Public Accounts of the
State of Texas
Section 11: In this ordinance the term "system" shall include and mean
the waterworks system and the sewer system of said City, together with additions
and extensions thereto and improvements and replacements thereof.
Section 12: 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 in-
debtedness against the System, as is required by Article 1113, Vernon's 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 bonds,
coupons, or any part thereof, and in addition to all provisions and covenants
in the laws of the State of Texas and in this ordinance, it is expressly stip-
ulated:
A. RATES: The City shall fix and maintain rates and collect charges for
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.
(2) To establish and maintain the Bond Fund.
(3) To pay all outstanding indebtedness against the 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.
B. USE OF REVENUES: The City will deposit as collected all revenues derived
from the operation of the System into a separate account (herein called the
00514
"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) BOND FUND: 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, the
Waterworks and Sewer System Revenue Bonds, dated February 1, 1951, and the Water-
works and Sewer System Revenue Bonds, Series II of 1951, are outstanding, commenc-
ing 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. The amount required to bepaid 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 main-
tenance, 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 Fund 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 prin-
cipal 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 5 or 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 obliga-
tions 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 author-
ized, 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 pay-
ing the amounts required to be paid into the Bond Fund heretofore established
for the CITY OF COT,T,F,CE STATION WATERWORKS AND SEWER SYSTEM REVENUE BONDS,
Dated February 1, 1951, under the terms and provisions of the ordinance author-
izing said bonds, and after paying the amounts required to be paid into the Bond
Fund under the terms and provisions of the ordinance authorizing THE CITY OF
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COLLEGE STATION WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 11 of 1951,
and after paying the amounts required to be paid into the Bond Fund as above
provided, of the issue herein authorized, may be used by the City for the pur-
chase of said bonds at not exceeding the principal amount thereof (exclusive
of accrued interest) or for redeeming said bonds in accordance with the re-
demption provision contained. in Section 5 of this ordinance, or for any other
purpose permitted by law.
C. ADDITIONAL BONDS: In addition to inferior lien bonds authorized by
Chapters 249 and 250, Acts of the 51st Legislature of Texas, 1949, as amended,
the City reserves the right hereafter to issue additional parity bonds, and
such additional parity bonds, when issued, may be secured by and payable from,
a first lien on and pledge of the net revenues of the waterworks and sewer
system in the same manner and to the same extent as are the bond e authorized
by this ordinance, and the bonds authorized herein and such additional parity
bonds may in all respects be of equal dignity. It is provided, however, that
no such additional parity bonds shall be issued unless:
(1) An independent firm of certified public accountants certifies that
the net earnings of the waterworks and sewer system for the tweive-month
period not preceding the month. in which. the ordinance authorizing such
additional parity bonds is adopted, were equal to at least one and one-half
(1-1/2) times the principal and interest requirements on the then outstanding
bonds payable from the revenues of said waterworks and sewer system and on
said additional bonds, when issued, sold, and delivered, for the calendar year
in which said requirements are greatest. The term. "net earnings" as uSed here-
in shall meanall of the net revenues of the waterworks and sewer system (ex-
cluding income received specifically for capital items) after deduction of
the reasonable expenses of operation and maintenance of the System (exclud-
ing expenditures for capital items).
(2) Said additional bonds are made to mature on February 1st in each
of the years in which they are scheduled to mature.
It is expressly recognized that because of the outstanding bonds of the
first two inatallments of the bonds voted January 8, 1951 (of which the bonds
authorized by this ordinance constitute the third and final installment),
there may be a legal impediment to the issuance of additional bonds on a
parity with the bonds of this issue. The provisions of this ordinance -relat-
ing to said additional parity bonds are not intended tp infringe upon or affect
the rights of the holders of said •bonds of the first two installments, but are
intended to reserve unto said City the right to issue said additional parity
bonds under existing laws insofar as the holders of the bonds authorized by
this ordinance are concerned, and said right as Outlined above is expressly
reserved and retained by said City.
D. MAINTENANCE AND OPERATION: The City shall maintain the System in
good. condition and operate the same in an efficient manner and at a reason-
able 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 wouldbe 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 ANDTERIODIC 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
005
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 state-
ments 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.
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. INFORMATION: 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 each such
purchaser from time to time may reasonably require.
H. SALE OF BONDS: Upon request, the City will furnish to 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 con-
cerning the City and the System.
Section 13: The Mayor, City Secretary and City Treasurer are hereby in-
structed 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
the 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
0 12, 1933. In accordance with the provisions of Article 1113, Revised Civil
9 Statutes of Texas, as amended, the fiscal year for the operation of such System
shall be July 1st to June 30th of each year.
Section 14.: The City further covenants by and through this ordinance as
follows:
GI (a) That the revenue bonds authorized hereunder shall be special obliga-
Cr) tions 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.
CD (b) That it has the lawful power to pledge the revenues supporting this
,,t issue of bonds and has lawfully exercised said power under the Constitution
and laws of the State of Texas, including the power existing under Articles
C) 1111 - 1118, both inclusive, 1925, Vernons 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 than for the payment of the bonds herein provided for,
and for the payment of the City of College Station Waterworks and Sewer System
Bonds, dated February 1, 1951, and for the payment of the City of College Station
Waterworks and Sewer Revenue Bonds, Series II of 1951, heretofore authorized
and issued, the rents, revenues and income of the said system have not been pledg-
ed in any manner to the payment of any debts or obligations of the City, nor of
said System. 00517
Section 15: 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 authorized and instructed
to deliver the bonds to the American National Bank, Austin, Texas, where they
will be taken up and paid for by the purchaser.
Sectioi 16: That said bonds have been advertised for sale as provided
by Section 65 of the City's Home Rule Charter and bids having been received
on January 17, 1955, pursuant to said advertisement and the bid of Rowles,
Winston & Co., Houston, Texas, being the best bid received, and the City
Council hereby determines that said bid is the best bid, the sale of said
bonds to Rowles, Winston & Co., Houston, Texas, at its bid price, to wit:
the principal amount plus accrued interest thereon from the date of said
bonds to the date of actual delivery, subject to the unqualified approving
opinion as to the legality of said bonds by the Attorney General of Texas,
and market attorneys selected by the purchaser, is hereby approved, ratified,
and confirmed.
Pect}.on 17: That this ordinance shall take effect from and after its
passage.
PASSED AND APPROVED THIS 25th day of January, 1955.
Mayor, City of
ATTEST:
)16=1
City Secretary
(sEAL)
ation, Texas
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