HomeMy WebLinkAboutORD 05.02.1966 - Revenue BondsU bz
AN ORDINANCE
U 1'
BY THE CITE` COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, AUTHORIZING
WE ISSUANCE OF REVENUE BONDS OF SAID CITY IN THE TOTAL PRINCIPAL
,AMOUNT :OF , 325,000.00 (BEING THE FIRST PARCEL OR INSTALLMENT OF
A 14: TOTAL VOTED .AUTHORIZATION OF 400, 000.00) , OF WHICH $45,000,00
OF BONDS ARE AUTHORIZED :FOR THE PURPOSE OF CONSTRICTING EXTENSIONS
AND IMPROVEMENTS TO THE C ITY' S W TFRIVO S SYSTEM: SO, 000.00 OF
BONDS ARE AUTHORIZED ED FOR THE PURPOSE OF CONSTRUCTING aTENSIONS
AND IMPROVEMENTS TO THE CITY'S SEWER SYSTEM AND $200 000.00 of
BONDS + AUTHORIZED FOR THE PURPOSE OF CONSTRUCTING EXTMISIONS
AND IMPROVEMENTS TO THE CITY'S ELECTRIC LICIT SYSTEM; PRESCRIBING TIE
FORM, TERMS CONDITIONS OF THE`BONDS AND THE FORM OF THE IN--
TE11b''ST COUPONS; PLEDGING THE REVENUES OF THE CITYS COMBINED WATER-
WORKS, S9,VEft AND ELECTRIC LIGHT SYSTEM TO THE PAYMENT OF PRINCIPAL
OF AND INTEREST ON SAID BONDS AFTER DEDUCTION OF REASONABLE EX-
pENSES OF OPERATING AND MAINTAINING SAID COMBINED SYSTEM; MAKING
CERTAIN IN COVENANTS OF SAID CITY WITH REFERENCE TO THE BOND FUND
FROM WHICH SAID PRINCIPAL AND INTEREST ARE TO BE PAID; WNACTING
PROVISIONS INCIDENT AND RELATING TO THE SUBJECT AND PURPOSE OF
THIS ORDINANCE: CONFIRMING THE SALE OF THE BONDS; AND DECIAIING
,AN EMERGENCY,
lffiFAiEAS, under and by virtue of an order passed and adopted by the City
Council of the City of Georgetown, Texas, on February 1, 1966, an election was or-
dered to be held in said. City on February 26, 1966, on the questions of the issuance
of $50,000.00 of Revenue Bonds for the purpose of constructing extensions and im-
provements to the City's Waterworks system, 150,000400 of revenue bonds for the
purpose of constructing extensions and improvements to the City's sewer system,
and $200,000 of revenue bonds for the purpme of constructing extensions and improve-
ments to the City's electric light system/ snn.ch revenue bonds to bear interest at
a rate not to exceed five per cent (5,%) per annum, and to mature serially over a,
period of years not to exceed thirty (30) years from their date; and
WHEREAS, said election was held pursuant to said order on February 26,
1966; and
W IE 'ate, the City Council has examined into and investigated the regularity
of the proceedings for said election and finds that the same was duly and legally
held; that the notice required by law to be given was duly and legally given; that
said election was conducted in strict conformity with the law; and that due returns
of said election have been made by the proper officers, and
E {,.AS, at said election, a majority of the resident qualified property
taxpaying voters of the City of Georgetown, who owned taxable property in said
City and who had duly rendered the some for taxation, voting at said elections,
voted in favor of the issuance of said bonds in the total principal amount of
400,000.00; and
WHEREAS, the City Council has heretofore on. February 28, 1966, adopted, a
resolution canvassing the retnsrnns and declaring the result of said election and
determining the specific authority of the City to issue said revenue bonds; and
WHEREAS, it was provided in the order calling said election and in the notice
of sueh election that the bonds of three series he einabove mentioned were to be
ratably secured in such manner that no one bond shall have priority of liens over
any other bond or bonds, it being the intent to provide for the creation of an
indebtedness against the City's combined waterworks, suer and electric light
system for the purposes therein stated, and which bonds if approved by the €quali-
fied voters, voting at said election, were to be issued in one or more installments,
but as a single combined authorization,, and payable from the same source as are
the "City of Georgetown Utility System Revenue Bonds, Series 1964," dated June 1,
1964, and secured by the same revenues, -eared to occupy a position of parity in all
respects with the said Utility System Revenue Bonds, Series 1964; and
jVHER,EAS, this City Council has determined that the City is not in, default
496
as to any covenant, condition or obligation prescribed by tQ� ordinance author-
izing the issuance of said City of Georgetown Utility Syste Revenue Bonds,
Series 1964, and has complied with all the requirements set lut in said ordinance
with reference to the issuance of additional parity revenue ilands; and
WHEREAS, it now being determined by the City,Council beat it is not
desired at this time to issue all of the bonds voted at sai lelection of
February 26, 1966; that $325,000.00 is the amount of bonds MwM desired to be
issued, to -wit: $45,000.00 for the purpose of constructing e`,tensions and reprove- _3
ents to the City's is waterworks system �p
� �p0,000,00 for the pu pose of constructing
extensions and improvements to the City's suer system, and 1200,000.00 for the
purpose of constructing extensions and improvements to the City's electric
light system, and that the remaining amount of bonds, to -wit' 5,000.00 of bonds
for waterworks system improvements and $70,000.00 of bonds fir suer system
improvements, shall be issued at a future date or dates, whel in the judgment of
the City Council, the proceeds of said bonds are needed for 0e purposes for
which authorized; and
WREREAS, it is now necessary and proper that the City Council proceed
with the issuance of snch $325,000.00 of bonds;
THEREFORE, RF IT ORDAINED BY THE CITY COUNCIL OF THE Z ITY OF GEOBGETOWN,
T S: I
Section 1.' That the City Council of the City of Georgetown, Texas, by
virtue of the authority expressly conferred upon it by the a°�sidezt qualified
property taxpaying voters of said City, who owned taxable priperty in the Cit.
and who had duly rendered: the same for taxation, voting at al election held for
that purpose on February 26, 1966, and pursuant to the gener l lams of the
Mate of O as, particularly articles 1111 - 1115, inclusive of the Revised`
Civil Statutes of 'Texas, as amended, has determined that the shall be issued,
and there is hereby issued, a series of coupon Bonds in the iptal principal
amount of THREE HUNDRED ' TY FIVE THOUSAND DOLLARS 05,0 � ), of which
45,000 of Bonds shall be issued for the purpose of congtrue-Ing extensions
R y' system,
8 �
and improvements to the City's waterworks s�rstes� n SO,OOO of � Duds shall
be issued for the purpose of constructing extensions and KPIDvements to the
City's suer system, and $200,000 of Bonds shall be issued fir the purpose
of constructing extensions and improvements to theCity's el trio light system.
That said. Bonds shall be designated CITY OF GEORGRTO W UTILIW STSTD.1 s
BONUS, SERIES 1966, and shall be payable, together with the tstanding "City Of
Georgetown Utility System Revenue Bonds, Series 1964, dated :zne 1, 1964, solely
from and secured by a first lien on and pledge of the revenuiR of the City' com-
bined waterworks, suer and electric light system, after dedr� ti.on of reasonable
operation and maintenance expenses, as such expenses are defj ed by statute.
Section 2.'That said Bonds shall be, dated June 1, 19 ; shall be number-
ed consecutively from One (1) to Sixty-five (65), both inclu 've; shall be of
the denomination of Five 'Thousand Dollars ( ,000.00) each, aid shall become dace
and payable serially in accordance with the following schedu%
BOND NUMBEIRS
Ipclusive hfaturity dates � AMOUNTS
1,7 2 June 1, 1967 0,000
- 4 June 1, 1968 � 10,000
5 - €a June 1, 1969 10,000
7 - B Jane 1, 1970 10,000
9 - 10 June 1, 1971 10,000
es
11 - 12 June 1, 1972 10,000
13 - 14 June I, 1973 10,000
15 - 17 June 1, 1974 15,000
1 - 21 June 1, 1975 20,000
22 - 25 'June 1, 1976 20,000
2 29 June 1, 1977 20,000
30 - 33 June 1, 1978 20,000
r 3 - 37 June 1, 1979 20,000
38 - 41 June 1, 1950 20,000
42- 45 Jame 1, 1951 20,000
45 - 49 Janie 1, 1982 20,000
50 -+ 53 June 1, 1983 20,000
54 - 57 Jane 1, 1954 20,000
58 m 61 June 1, 1955 20,000
62 - 65 June 1, 1936 20,000
Section 3. That said Bonds shall bear interest from date until paid as
follows:
June 1, 1967 thra June 1, 1975 - 3.75
June 1, 1976 thru June 1, 19€16 - 4.00
such interest to be evidenced by proper coupons attached to each of said
bonds and to be payable December 1, 1966, and semi-annually thereafter
on June lst and December 1st in each year.
Section 4a_That both principal of and interest on the Bonds shall
t
_... be payable in lawful money of the limited States of America, upon presen-
tation and surrender of Bonds or proper coupons at the Citizens State Bonk,
Gerogetown, Texas, or, at the option of the bearer, at the First National
Bank, Gero etown, Texas, or, at the option of the bearer at Texas Bank and
Trust Company, Dallas', Texas, without exchange or collection charges to
the bearer°. thereof.
Section 5, That said Bonds and the interest coupons appurtenant thereto
shall be signed by the imprinted facsilile signature of the Mayor of the City
f Georgetown, Texas, and countersigned by the imprinted faesitile signs-.
tare of the City Secretary, d the execution of such Bonds and coupons
in such manner shall have the same effect as if such Bonds and coupons had
been signed by the Mayor and City Secretary in person by their manual sig-
natures. That inasmuch as such Bonds are required to be registered by the
Comptroller of Public Accounts of the State of Texas, only his signature,
or that of a delaazty designated in writing to act for the Comptroller, shall
be required to be manaaally subscribed to such Bonds in. connection with his
V
registration certificate to appear thereon as herein provided, all in
accordance with the provisions of Article 717 -1, Vernon's Civil Statutes of
Texas, 1925, as aaended®
That the official seal of the City of ,Georgetown, Texas, shall be im-
pressed, or a facsimile thereof shall be printed, on each of said. Bonds.
Section 6. That said Bonds shall be substantially in the following
fora:
NO a UNITED STATES OF AMERICA $ 5,000
STATE OF TEXAS
COUNTY OF WILLI MSON
CITY OF GEORGETOWN
UTILITY STSTEM REVENUE BON, SERIES 1966
The City of Georgetown, a lawfully created and exist
poration in Williamson County, Texas, FOR VALUE RECEIVED, h
to pay to bearer, solely from the special funds hereinafter
sum of FIVE MOUSAND DOLLARS ( $5,000.00), on the Ist day
and from said special funds, to pay interest thereon from t
the rate of percent per annum, on D
and thereafter semi-annually on June Ist and December Ist i
the principal anount of this Bond shall have been paid. Th
this Bond and the interest coupons attached hereto shall be
in lawful money of the United States of America, without ex,
charges to the bearer, upon presentation and surrender of t]
interest coupons at the Citizens State Bank, Georgetown, Te,
option of the bearer, at the First National Bank, Geol
the option of thebearer, at
municipal cor-
by promises
ecified, the
June, 19 _P
date hereof at
caber 1, 1966,
ach year until
rincipal of
yable to bearer,
inge or collection
Bond or proper
or, at the
Texas, or at
,This and is one of a Series of 65 Bonds, numbered cod
isecutively from
I to 65, inclusive, of the denomination of Five Thousand Dol.ars ($5,000.00)
each, aggregating Three Hundred Twenty-five Thousand Dollars ($325,000.00),
(being the first parcel or installment of a total voted auth riztion of $400,000);
Bonds of said Series in the amount of 145,000.00 being issueby the City of
Georgetown, exas, for the purpose of constructing extensionard improve-
ments to the City's waterworks system, Bonds of said Series In the amount of
$80,000.00 being issued for the purpose of constructing exte--.qions and improve-
ments to the City's sewer system, and Bonds of said Series 1,111". 1 the amount 0 ;11,11 f !
$200,000.00 being issued for the purpose of const:njcting ext
provements to the City's electric light system, in accordane
stitution and laws of the State of Texas, particularly Artie
both inclusive, of the Revised Civil Statntes of Texas, 1925
by authority of as vote of the qualified property taxpaying v
City of Georgetown, Texas, who owned taxable property the
rendered the same for taxation, voting at an election held f
within said. City on February 26, 1966, and pursuant to an or
the City Council of the City of Georgetown and duly recorded
said City Council,.
This Bond, and all Bonds of the Series of which it is
with the "City� tel
of Georgetown I'tility Sys -.1 Revenue Bonds, S
June 1, 1964 (Herein collectively called the "Parity Bonds")
special. obligations of the City of Georgetown-, each payable
and interest and equally seenred by as first lien on and pled
ions and in -
with the Coax-
�s 1111 - 1118,
vis airended, and
,,ers of the
and who had daly
that piirpose
na'nce passed by
n the Minutes of
no, together
ies 1964," dated
constitute
to both principal
of the net
revenues of the Citys combw ined aterworks, sewer and elec
eluding all additions, dditions, extensions and improvements thereto ti ch may hereafter light system, in -
be made (hereinafter referred to as the "Utility System"), as
reasonable expenses of operation and maintenance.
The City reserves the right to issike not only the '$5,
of revenue bonds authorized at the election held February 26
,purpose of constructing extensions and improvements to its w
and the $70,000.00 balance of revenue bonds authorized at sa
purpose of constructing extensions and improvements to its a
also further and additional bonds, im,,all things on a parity
Bonds, and payable from and equally secured by as first lien
net revenues of the City'Utility System; PROVIDO), HOWEVER
er deduction of
0.00 balance
1966, for the
erworks system
election for the
er system, but,
ith the Parity
and pledge of the
that any a -ad
499
all. such further bonds may be so issued only in accordance with and subject to the
covenants, limitations, conditions and restrictions relating thereto which are
set forth and contained in the ordinances authorizing the Parity Bonds and to ,
which said ordinances reference is hereby made for aaaore complete and full
particulars.
The holder hereof shall never have the right to demand payment of this ob-
ligation out of party funds raised or to be raised by taxation.
_... Each holder of this Bored, payable to bearer, or of the interest coupons
hereto attached, is conclusively presumed to forego and renounce his equities in
.._,.: that, being
favor of subsequent holders for value xarrthoxa.t notice and to agree t �
]sayable to bearer, this Bond, and each of the interest coupons attached, may
e negotiated by delivery howsover possession may have been acquired; and that
any subsequent molder who may receive this Bond, or any of the coupons attached,,
for value without notice, has thereby acquired absolute title free from all
equities and claims of ownership of any prior holder. The City of Georgetown,
its officers and the paying agents ahall not be affected by any notice to the
contrary.
AND IT IS JIMMY CERTIFIED AND RECITED that the issuance of this
Bond, and the Series of which it is d part, is duly authorized by lay; that all
acts, conditions and things required to exist and to be dome precedent to and in `t
the issuance of this boxed to render the same lawful and valid have been properly
done, have happened and have been performed ed in regular and due time, forays and,
manner, as required by the Constitution and laws of the State of Texas and the
ordinance hereinabove mentioned; and that this Series of Bonds sloes not exceed
h€ any constitutional or statutory limitation; and that provision has been made
I for the payment of the principal of and the interest on this'Bond, and the
Series of which it is a part, by irrevocablypledging the .revenues of the i,ty's
Utility System.
IN WITNESS WHEREOF, this Bozid and the interest conpons attached hereto have
been signed by the imprinted facsimile signature of the Mayor of said City and
countersigned ned by the imprinted facsimile signature; of the City Secretary of
said City and the official seal, of said City has been duly impressed or
printed on this Bond.
Mayor, City of Georgetown, Texas
countersigned;
City Secretary, City of Georgetown, Tex.
Section 7. That the form of said interest coupons shall be substantially
_ - as follows:
.� ON VE 1ST DAY OF � �, 9
The City of Georgetown, Texas, will pay to bearer out of funds specified
in the Bond to which this coupon is attached at the Citizens State Marais;, George-
town, Texas, or, at the option of the bearer, at The First rational hank, George-
town, Tuns, or, at the option of bearer at
:ithont exchange or collection charges to
the bearer hereof, the sum of Dollars
in la ful money of the United 'States of America, said sum be
interest due that day on CITY OF GEORGETOWN UTILITY SYSTEM
1966, dated 'June 1, 1966, No. to which this coupon i
a part thereof.. The .holder hereof shall never have the ri h
of this obligation out of any funds raised or to be raised b
Mayor, City of Geor etoi
City Secretary, City of
Section S, That substantially the following shall be
back of each Bond;
COMPTVILlERIS ISTI TION ` C tTIFICA GISTEIL NO.
I HEREBY CERTIFY that this Bond has been examined., cc
validity, and approved by the attorney General of the State c
this Bond has been registered by the Comptroller of Public Ac
State of Texas.
WITNESS MY SIGNATURE and seal this
Comptroller of Public,A
State of Texas
Section 9. l?asf n tion « The following words, terms aar
in this Ordinance shall have the following meanings unless tb
or implies a different meaning:
aa) "City" means the City of Georgetown.
i "City Council" or "Council" means the governing b
Georgetown.
(c) "Bonds" shall mean the $325,000 of revenue bonds
Ordinance.
d) "Outstanding Bonds" shall mean the "City of Georg
SIKK RAVOK4 B60 , Series 1969," darted June 1, 1964.
e) "Parity Bonds" shall mean collectively the Bonds
Bonds.
(f) "Additional Bonds" shall men the additional laari
witted to be issued under the provisions of the Ordinances au
Parity Bonds.
(fir) "Utility System" shall mean the System created an
and on behalf of the Cite under the provisions of the Grdinan
the Outstanding Bonds and as defined in Section 10 of this Or
( ) ""Net Revenues" and "Pledged Revenues" shall mean
rived from the operation of the Utility System as such revere
pledged in Section 11 of this Ordinance;
i) "Utility System Revenue Fund, "Uti litcp System Reve
and Sinking Fund," "Utility System Revenue Bonds Reserve Peened
System Contingency fund," shall mean the special funds which
six months'
tENUE BOND, SERIES
attached" and i
to demand payment
taxation.
a, Texas
Georgetown, Texas
srinted on the
tified as to
Texas; ,and that
taunts of the
ounts Of The
expressions used
context indicates
dy of the City of
thori ed by this
town Utility
id the Outstanding
r revenue bonds per-
torizing the
established for
authorizing
nance; ,
re revenues de
are defined and
e Bonds Interest
and "Utility
e 'City Councilhas `
heretofore created and ordered to be established and maintained for the payment
of expenses of operating and maintaining the Utility System and costs of certain
repairs or replacements to said System and for the psynent of principal of and
interest on bonds outstanding against the Utility System, as hereinafter more spe-
cifically stated.
Section 10. Utility jr �twj. That the UTILITY SYSTDIN (hereinafter sometimes
called the "System"), as created and established, by the City Council, is comprised
of the entire waterworks system, the entire sewer system, and the entire electric
wn, Texas, together
of Georgetow
light systeri now owned and operated by the City
with all improvements, extensions and idditions thereto which may be made while
any Parity Bonds or Additional Bonds remain outstanding against the System.
Such Utility System shall be operated on the basis of as fiscal year commencing
on September Ist of each year and ending on August 31st of the following Year.
Section 11. P19AU of Revenues.. The Bonds herein authorized and the out-
standing "City of Georgetown Utility System, Revenue Bonds, Series 1964,"dated June 1,
1964, shall be equally and ratably secured by and payable from an irrevocable
first lien on and pledge of the income and revenues derived and to be derived
from the operation of the System, after deduction;therefrow, of the amount nec-
essary to pay all operating, maintenance, replacement and betterment charges of
the system, as is required by Article 1113, of the Revised Civil Statutes of
Texas, 1925, as amended, and by other applicable Statutes of the State of Texas.
Section 12. Maintenance of Rates. The City hereby covenants and agrees
that it will, at all tinies, while any of the Parity Bonds ar any Additional
It,
Bonds, or any interest thereon, are outstanding and unpaid, charge and collect
for services rendered by said Utility System rates sufficient to pay all wainten
ance, depreciation, replacement, betterment, and interest charges and to provide
an Interest and Sinking Fund sufficient to pay the interest and principal of
such bonds as such interest and principal mature and any outstanding indebtedness
of said System, as is required by applicable Statutes of Texas. For the benefit
of the original purchasers and for the benefit of any and all subsequent holders
of the Parity Bonds, Additional 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 covenanted that the City shall fix and main-
tain rates and collect charges for the facilities and services afforded by the
System to the City and to all other customers which will provide revenues
sufficient at all times:
(a) To pay all operating, maintenance and replacement charges of the
Utility System, as is required by Article 1113 of the Civil Statutes, as amended,
and by other applicable Statutes of the State of Texas.
(b) To establish and maintain the Interest and Sinking Fund and the
Reserve Fund for the Parity Bonds and for any Additional Bonds;
(c) To pay in addition all outstanding indebtedness against the Utility
System other than the Parity Bonds, or any Additional Bonds, as and when the
same becomes due; and
(d) To provide for the payments into the "Contingency Fund" as required
under the provisions of the Ordinances authorizing the issuance of the Parity
Bonds.
Section 13. Utilitytystem Revenue Fund. There shall be deposited in the
Utility System Revenue Fund (already established) as collected all revenues
derived from the operation of the Utility System, which fund shall be main-
r1_1
tained separate and apart from all other funds of the City. uch Utility System
Revenue Fund shall be maintained so long as any Parity Bonds or any Additional
Bonds, remain outstanding, in the City's official Depository and shall be ad-
ministered as follov7s:
(a) OPERATION ,AND IMINTENANCE, EXPENSES: . The money in the-, Utility System
Revenue Fund shall, be used first for the paymeirft of the real (nable and proper
expenses of operating and maintaining the Utility System, in _uding salaries,
labor, materials, interest, repairs and extensions necessary to render efficient
service. The words "repairs" and "extensions" as eased in-dii.41 paragraph shall be
construed to refer only to such repairs and. extensions, as' ii the Judgment of the
governing body of the City, are necessary to keep the System En operation and ren-
der adequate service to the City and the inhabitants thereof , or such as might be n
netessan y to remedy some physical accident or condition wbic
impair the security of the Parity Bonds or any Additional Be
W BOND FUND; The amounts to -be paid into the Uti lit
Interest and Sinking Fund (already established and hereinaft
Fund") during each year in which any of the Parity Bonds, or
are outstanding, shall be an amount equal to 100 Tier centum
to meet the interest and principal payments falling due on o
maturity date of the Parity Bonds or any Additional Bonds tea
or before the 10th day of each month, after payments have be
by subsection (a) of this Section 13, t1re City shall withdra
team Revenue Fund and deposit in the Bond Fund. an amount not
of: 1/12th of the next maturing installment of principal of
outstanding, and of any additional Bonds then outstanding, a
semi-annual installment of interest on the Parity Bonds then
any Additional Bonds then outstanding. The monies in the Bo
solely for the purpose of paying the interest on and the pri
Bonds, and any Additional Bonds, until all such bonds have b,
the event the income and revenues of the Utility System are
,month to permit the required deposits into the Bond Fund in
,the provisions hereof, then the amount of any deficiency sha
amount othenv1se required to be deposited in said Bond Fund
until all deficiencies are rectified.
That concurrently with the delivery of the Bonds to
thereof, all sums of money received from the purchasers as a
paid on the Bonds shall be placed in the Bond Fund.
(c) Rringw, FUND: Commencing June 10, 1966, and on or
day Of each month thereafter, after payments have been made
sections (a) and (b) of this Section 13, the City shall with
System Revenue Fund and deposit in the Utility System Revenu
Fund (already established and hereinafter called the "Resery
Lion to the payments and deposits otherwise required, to be m
of $341.00 until an additional debt service reserve of 8,24,4
standing Bonds has been established, and thereafter, such su:
be necessary to maintain the required. reserve of $55,884.00
The City covenants and agrees that in the event Additional B
as hereinafter provided, the Ordinance authorizing such Addi
provide for the payment into the Reserve Fund of such additi
shall be necessary to permit an accumulation in the Reserve
years from the date of the Additional Bonds, as an additiona
would otherivise
System Revenue Bonds
called the "Bond
ny Additional Bonds,
the amount required
before the next
outstanding. On
made as required
from the Utility Sys:�
ss than the total
e Parity Bonds then
1/6tb of the next
tstanding and on
Fund shall be used
ipal of the Parity
n retired. In
efficient in. any
I accord with
be added to the
the next month, tt
� per ] 1,
asers
rued interest
,efore the 10th
I required by sub-
-air from the Utility
Bonds Reserve
Fund"), in addi-
,e therein, the sum
,.00 on the out -
monthly as may
the Parity Bonds.
As are issued.
on al Bonds shall
al sums as
red, within six
reserve, of an amount
W,
51
of money at least equal to one year's average annual principal and interest
requirements on the Additional Bonds then outstanding. The Reserve Fund shall
be used to pay principal of or interest on the Parity Bonds and such Additional
Bonds falling due at any time for the payment of which there is no money avail-
able in the Bond Fund. No payments need be made into the Reaerve Fund after
there shall have been accumulated and shall exist in said Fund the amount of
money herein stipulated; but if at any time it becomes necessary to use tempor-
arily any part of such Reserve Fund for the payment=iof principal or interest, or
it is otherwise depleted, payments into the Reserve Fund shall be resumed and
continued until such time as such Fund contains the amount of money then required
to be on deposit therein. The City's official Depositor-
y is hereby authorized
to invest the money in, the Reserve Fund in direct obligations of or obligations
unconditionally guaranteed by the United States Government, having Mturities
not in excess of Five (5) years from the date of the making of such investment,
as the City Council may direct. Said obligations shall be deposited in escrow with
said Depository under an escrow agreement, and if at any time uninvested funds
shall be insufficient to permit payment of principal and interest, maturities of the
Parity Bonds or any Additional Bonds then outstanding as heretofore directed,
said Depository shall sell on the open market such amount of the securities as is
required to pay said Parity Bonds or Additional Bonds and the interest thereon
when due, and shall give due notice thereof to the City of Georgetown. All
money resulting from the maturity of principal and interest of the securities in
which the Reserve Fund is invested may be reinvested and accumulated in said
Reserve Fund and considered a part thereof and used for and only for the purposes
hereinabove provided with respect to said Fund.
(d) CONTINGENCY FUND: Based on an annual review of the experience as to
the cost of repairs and replacements to the Utility System necessitated by the
occurring of emergencies and the recommendation of the City's Consulting
Engineer, the City Council has determined that the Utility System Contingency
Fund (hereinafter referred to as the"Contingency Fund"), heretofore created and or-
dered to be established and maintained in the amount of $15,000.00 is sufficient
for the time being. The Contingency Fund shall be used to pay the (1) cost of
any repairs or replacements to the Utility System necessitated by the occurring of
an emergency and (2) interest on and/or principal of the Parity Bonds or any
Additional Bonds, when other funds of the City are insufficient for such purpose.
The City covenants and agrees that in the event Additional Bonds are issued,
the Ordinance authorizing such Additional Bonds sball provide for such appro-
priate additional or larger amounts to be accumulated in the Contingency Fund
as deemed advisable by the City Council, based on an annual review of the experience
as to the cost of repairs and replacements to the Utility System necessitated
by the occurring of emergencies and the recommendation of as Consulting Engineer.
No payments need be made into the Contingency Fund after there shall have
been. accumulated in said Fund the amount of money then required to be on deposit
therein, except that whenever arty money is paid out of said Fund, payments into
the Fund shall be resumed and continfted until such time as the Fund his been restor-
ed to the required sum.
The City's official Depository is hereby authorized to invest the money In
the Contingency Fund in direct obligation,, of or obligations iinconditionally
guaranteed by the United States Government, having maturities not in excess of
five (5) years from. the date of the riaking of such investment, as the 10ity
M
Council tray direct. Any obligation,; in which money so i
kept in escrow in said Depository and shall be promptly of
of sale applied to the making of payments required to be ma
gency Fumd, whenever such payments are required, to be made
provisions of this Ordinance.
(e) SURPLUS, FliNDS: All moneys remaining in the Utili
Fund after the requirerients of subsections (a), (b), (c), a
tion 13 have been met (including any increased payments int
Bond Fund, Reserve Fund, and Contingency Fund as may be nee
of the issuance of Additional Bonds in the future under the
Ordinances authorizing the Parity Bonds), and after all def
have been made up and all replacements made, shall be eitbe
for the making of improvements, extensions and additions to
System, or may, in the discretion of the City be used for a
purpose now or hereafter permitted by law, including the us
tiring in advance of maturity any Additional Bonds then out
ance with provisions made for their prior redemption, or ma
chase the Parity Bonds and Additional Bonds on the open mar
the market value thereof. All bonds so paid, redeerred or p
cancelled and shall not be re -issued. Nothing berein shall
ever, as impairing the right of the City to pay in accordan
visions thereof any junior lien bonds hereafter legally iss
ested shall be
and the proceeds
from the Contin-
er the forefroin.g
System Revenue
(d) of this See -
nary by reason
rovisions of the
iencies shall
used or accumulated
Utility
other proper city
thereof in re-
anding, in accord -
be used to pur-
t at not exceeding
chased shall be
e construed, how -
with the pro-
d by it.
S
r ection 14. SP1q'XL' fear Funds. All monies which are o be paid into
the Depository under the provisions of the Ordinances aut I �zing the Parity
Bonds shall be secured in accordance with the laws of the St to of Text)s ap-
plicable -thereto, and the City covenants especially that sucmoney shall be
continuously secured by a valid pledge of direct obligations of, or obligations
unconditionally guaranteed by, the United States of Anerica, having a par
value, or market value when less than par, exclusive of accried interest, at
all times at least equal to the total amount of money on depisit in the several
Funds in the Depository.
Section 15. Additional Bonds. In addition to the righ
of inferior lien as authorized by the laws of this State, t
town reserves the right to issue not only the $75,000.00 ba
voted at the election held February 26, 1966, and which is
to be issued, but also further and additional bonds from ti
from the net income and revenues of the Utility System; and,
compliance with law and the terms and conditions hereinafter
Additional Bonds shall be equally secured by a first lien or
Pledged Revenues; and the Additional Bonds, when issued, she
the Utility System Revenue Bonds Interest and Sinking Fund a
respects of equal dignity and on as parity with the Parity Bo
that in each instance:
(a) The Additional Bonds are authorized and issued in
the Constitution and applicable Statutes of the State of T".N
(b) The Bond Fund, the Reserve Fund, and the Continger,
the amount of money then required to be on deposit therein a
in compliance with all other covenants and undertakings in c
City of George-
ce of revenue bonds
t herein authorized
to time payable
en issued in
appearing, such
and pledge of the
I be payable from
d shall be ih all
, PROVIDED
onf ormi ty with
s;
y Fund contain
d the City is
ion with all ';
bonds then outstanding and payable from the net revenues of the Utility 'S'ys.tem;
(c) The Net Revenues of the Utility System for either the fiscal year
or twelve month period next preceding the date of the passage of an Ordinance
authorizing the issuance of the Additional Bonds are certified by a Certified
Public Accountant to have been at least equal to one and one-half times the
average annual principal and interest requirements on all bonds they outstand-
ing against the Utility System and the bonds then to be issued;
(d) A competent independent engineer certifies in writing that in his
opinion the average'annual net earnings throughout the life of the bonds then
outstanding against the Utility System and the bonds then to be issued shall be
equal to at least one and one-half times the average annual principal and interest
requirements on all bonds then outstanding against the Utility System and the
0
bonds then to be issued;
(e) The Ordinance authorizing the issuance of the Additional Bonds shall
provide (i) for an identical FLOW OF FUNDS as prescribed by Section 13 of the
Ordinances authorizing the Parity Bonds; (ii) that all revenues deposited
in the special funds and accounts created and established by such Ordinances
shall be commingled; and (iii) for appropriate additional or larger payments
to be made into said special funds and accounts and for appropriate additional
or larger amounts to be accumulated in said special funds and accounts for
all bonds then outstanding against the Utility System and the proposed Addition-
al Bonds, in full accord Nvith the provisions of this Ordinance.
Section 16. Maintenance and Qgtrntion. The City hereby covenants and
agrees to maintain the facilities of the Utility System in good condition and
operate the some in an efficient manner and at a reasonable cost. So long
as any Parity Bonds are outstanding, the City covenants and agrees to maintain
insurance for the benefit of the holder or holders of such bonds of the kinds
and in. the amounts which usually are carried by private companies operating simi-
lar properties, and that during such time all policies of insurance shall be
maintained in force and dept current as to premium payments. All moneys re-
ceived from losses under such insurance policies other than public liability
policies, are hereby pledged as security for such bonds until and unless the
proceeds are paid out in making good the loss or daniage in respect of which
such proceeds are received, either by replacing the property destroyed or
repairing the property damaged, and adequate provision for making good such
loss or damage made within ninety (90) days after the date of loss. The
payment of premiums for all insurance policies required under the provisions
hereof shall be congidered as maintenance and operation expenses.
Section 17. Records and -,Accounts. The City hereby covenants and. agrees
that so long as any Parity Bonds, or any interest thereon, remain outstanding and
unpaid, it will keep and maintain a proper and complete system of records and ac-
counts pertaining to the operation of the Utility System, separate and apart
from all other records and accounts, in which complete and correct entries shall
be made of all transactions relating tosaidSystem as provided in Article 1113,
Revised Civil Statutes of Txas, 1925, as amended, and that the holder or holders
of any of the Parity Bonds, or any duly authorized agent or agents of such
holders, shall have the right at all reasonable times to inspect all such
records, accounts, and data relating thereto, and to inspect the System and, all
proper -ties comprising same. The City further agrees 0-tat Norit'hin sixty (60) days
following the close of each fiscal year, it will cause an at it of Snell books
and accounts to be made by an independent firm of Certified Public Accountants,
showing the receipts and disbursements for account of the Utility System for
the fiscal year, and each such audit, in addition to whatev r other matters
may be tbought proper by the Accountant, shall particularly include the follow-
ing.
(a) A detailed statement of the income and expenditur
the Utility System for such fiscal year.
(b) A balance sheet as of the end of such fiscal Yea
(a) The Accountant's comments regarding the manner i
has carried out the requirements of this Ordinance and his
for any changes or improvements in the operation, records
of the Utility System.
(d) A list of the insurance policies in force at the
cal year on the Utility System properties, setting out as
the amount thereof, the risk covered, the name of the ins
expiration date.
(e) A list of the securities which have been on depo
for the money in the Bond Fund, the Reserve Fund and the C
throughout the fiscal year; a list of the securities, if as
Reserve Fund and the Contingency Fund have been invested,
the manner in which money in the Utility System Revenue Fu
secured in such fiscal year.
(f) The number of metered and unmetered customers c
various departments of the Utility System, showing totals
for account of
hich the City
commendations
accounts
d of the fis-
each policy
; and the policy's
t as security
tingency Fund
in which the
a statement of
ected with the
; of the end of
the year.
Expenses incurred in making the audits above require T are to be paid
as maintenance and operation expenses.
Tice City further agrees to promptly furnish as copy of each such audit
I
to First Southwest Company, Dallas, Texas, Rauscher, Pieredi & Company, San
Antonio, Texas and to any holder of any of the Bonds who Will request same
I
in writing, and that the holder of any of the Bonds shall I ve the right to
discuss with the accountant making the audit the contents 1; the audit and
to ask for such additional information as he may reasonably request.
fnRyRn_1§ §n1t, Lease or other ! m_. The City here-
g
by covenants, binds and obligates itself not to sell, lease or in any manner
dispose of the Utility System, or any part thereof, includ- g any and all
extensions and additions that may be made thereto, until aLl Bonds shall
have been paid in full as to both principal and interest (provided that this
covenant shall not be construed to prevent the disposal by the City of property
which in its judgment has become inexpedient to use in conflection with the
Utility System when other property of equal value has been substituted
therefor).
Section 19. That so far as it legally may,
the City covenants and agrees, for the protection and secNity of the
Bonds and the holders thereof from time to time that it Sri 1 11 not grant
a franchise for the operation of any competing waterworks,''sewer and/or
electric light system in the City of Georgetown, until all Bonds issued
hereunder shall have been retired.
Section 20. Remedies in Event of Uefaaa1. In additi n to all the
rights and remedies provided by the laws of the State of T xas, the City
M
covenants and agrees particularly that in the event the City (a) defaults
in the payment of principal of or interest on any Bonds when due, (b) fails to
make the payments required by Section 13 of the Ordinances authorizing 'the Parity
Bonds to be made into the Bond Fund, Reserve Fund and Contingency Fund, or (c) defaults
in the observance or performance of any other of the covenants, conditions or
obligations set forth in this Ordinance, the following remedies shall be nvail-
cable-.
(a) The holder or holders of any of the Bonds issued hereunder shall be en-
titled to a writ of mandamus issued by as court of proper jurisdiction compelling
and requiring the City Council and other officers of the City to observe and per-
forni any covenant, obligation or condition prescribed in the Bond Ordinance.
(b) No delay or ommission to exercise any right or power `accruing; upon any
default shall impair any such right or power or shall be construed to be a waiver
of any such default or acquiescence therein, and every such right and power may
be exercised from time to time and as often as may be deemed expedient.
The specific remedies herein. provided, shall be cumulative of all other ex-
isting remedies and the specification of such remedies shall not be deemed, to be
exclusive.
Section 21. S�eeial Covenants and Conditions. (a) The City will duly and
,punctually keep, observe and perform each and every tetras, covenant and condition
on its part to be kept, observed and performed, contained in this Ordinance, and
will punctually perform all duties with reference to the Utility System required
by the Constitution and laws of the State of Texas, including particularly the
making and collecting of such reasonable and. sufficient rates and charges for
services supplied by the Utility System to the City and to all other customers,
adjusting such rates and charges from time to time in such manner as will be
fully sufficidnt to meet all the requirements of the Ordinances authorizing the
Parity Bonds9 and the proper segregation a -rid application of the revenues of such
System;
(b) The City is duly authorized under the laws of the State of Texas to issue
the Bonds and to pledge the revenues pledged hereunder, and all necessary action
on the part of the City and its City Council for the issuance of the Bonds have
been duly and effectively taken, and that the Bonds in the bands of the holders
thereof are and will be valid and enforceable obligations of the City in accor-
dance with their terms;
(c) That the Bonds authorized hereunder shall be special obligations of the
City and the holder thereof shall never have the right to demand payment out of
funds raised or to be raised by taxation.
(d) That other than for the payment of the Bonds and the outstanding City
of Georgetown Utility System Revenue Bonds, Series 1964, doted. June 1, 1964, the
rents, revenues and income of the Utility System have not been pledged in any
manner to the payment of any debts or obligations of the City nor of said System.
(e) That the Utility System of the City is free and clear of all encumbrances.
Section 22. Ordinance to Constitute Contract. That the provisions of this
Ordinance shall constitute as contract between the City snd the holder or holders
from time to time of the Bonds, and after the issuance of any of said Bonds, no
change, variation or alteration of any kind of the provision,-, of this Ordinance
may be made, unless as herein otherwise provided., until all of the Bonds shall
have been paid as to both principal and interest.
Section_gq, Ap_upc�yal ;��r ac(rist,ij K, atioof Boij_kq_,, Thf
= _ _ _
complete record of proceedings shall be submitted to the Att(
approval. After the Bonds have been approved by the Attorne;
be left in the care and custody of the Comptroller of Public
of Texas, and the State Comptroller is hereby authorized to
after registration thereoft to The Austin National Bank in Ai
Section 24. Confirmation of Sale, That the sale of
Southwest Company - Rauscher, Pierce & Company at a price of
interest to date of delivery, plus a cash premium of
confirmed. Delivery of the Bonds to said purchasers shall W
be after the passage of this Ordinance, upon payment therefo:
the terms of sale.
Seaction 25. IT IS HEREBY CERTIFIED AND RECITED by t!
(a) That the City is in compliance with all covenant
in connection with the Outstanding Bonds; and
(b) That in issuing the Bonds, the City has complied
requirements pertaining thereto as set forth in the Ordinanc
issuance of the Ontstanding Bonds,
Suction 16. The fact that the City Coca
the passage of this Ordinance and the issuance of the Bonds
preservation of the public health and safety of the citizens
Georgetown, it is hereby declared to be an emergency measure
the rule requiring Ordinances to be read at more than one me
City Council be suspended and that this Ordinance take effec
and after its passage, and it is so ordained.
PASSED AND APPROVED this 2nd day of May, 1966.
Mayor, City of
ATTEST:
City Secretary
I the Bonds and a
Toy General for his
General, they shall
,counts of the State
Jiver the Bonds,
Kin, Texas.
0e Bonds to First
and accrued
__9 is hereby
made as soon as may
in accordance with
City Council:
and undertakings
ith all the
authorizing the
Rcessary for the
of the City of
lemanding that
tin g of the
immediately from
1�18mmm