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HomeMy WebLinkAboutORD 05.02.1966 - Issuance of Bonds for Utilities49 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TOW , AUTHORIZING THE ISSUANCE OF REVENUE BONDS OF SAID CITY IN THE TOTAL PRINCIPAL AMOUNT OF $325,000.00 (BEING THE FIRST PARCEL OR INSTALLMENT OF A 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 CITY'S WATERWORKS SYSTEM: $80,000.00 OF BONDS ARE AUTHORIZED FOR THE PURPOSE OF CONSTRUCTING EXTENSIONS AND IMPROVEMENTS TO THE CITY'S SEWER SYSTEM; AND $200,000.00 of BONDS ARE AUTHORIZED FOR THE PURPOSE OF CONSTRUCTING EXTENSIONS AND IMPROVEMENTS TO THE CITY'S ELECTRIC LIGHT SYSTEM; PRESCRIBING THE FORM, TERMS AND CONDITIONS OF THE BONDS AND THE FORM OF THE IN- TEREST COUPONS; PLEDGING THE REVENUES OF THE CITY'S COMBINED WATER- WORKS, SEWER 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 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 DECKING AN EMERGENCY. WHEREAS, 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, $150,000.00 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/ such 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 WHEREAS, 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 h-eve been made by the proper officers; and WHEREAS, 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 same for taxation, voting at said election, 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 returns 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 such election that the bonds of three series hereinabove mentioned were to be ratably secured in such manner that no one bond shall have priority of lien over any other bond or bonds, it being the intent to provide for the creation of an indebtedness against the City's combined waterworks, sewer 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, and to occupy a position of parity in all respects with the said Utility System Revenue Bonds, Series 1964; and WHEREAS, this City Council has determined that the City is not in default as to any covenant, condition or obligation prescribed by the ordinance author- izing the issuance of said City of Georgetown Utility System Revenue Bonds, Series 1964, and has complied with all the requirements set out in said ordinance with reference to the issuance of additional parity revenue bonds; and WHEREAS, it now being determined by the City Council that it is not desired at this time to issue all of the bonds voted at said election of February 26, 1966; that $325,000.00 is the amount of bonds now desired to be issued, to -wit: $45,000.00 for the purpose of constructing extensions and improve- ments to the City's waterworks system, $80,000.00 for the purpose of constructing extensions and improvements to the City's sewer system, and $200,000.00 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 for sewer system improvements, shall be issued at a future date or dates, when in the judgment of the City Council, the proceeds of said bonds are needed for the purposes for which authorized; and 'WHEREAS, it is now necessary and proper that the City Council proceed with the issuance of such $325,000.00 of bonds; THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, Section 1. That the City Council of the City of Georgetown, Texas, by virtue of the authority expressly conferred upon it by the resident qualified property taxpaying voters of said City, who owned taxable property in the City. and who had duly rendered the same for taxation, voting at an election held for that purpose on February 26, 1966, and pursuant to the general laws of the State of T"xas, particularly Articles 1111 - 1118, inclusive, of the Revised Civil Statutes of Texas, as amended, has determined that there shall be issued, and there is hereby issued, a series of coupon Bonds in the total principal amount of THREE HUNDRED TWENTY FIVE THOUSAND DOLLARS ($325,000), of which $45,000 of Bonds shall be issued for the purpose of constructing extensions and improvements to the City's waterworks system, $80,000 of Bonds shall be issued for the purpose of constructing extensions and improvements to the City's sewer system, and $200,000 of Bonds shall be issued for the purpose of constructing extensions and improvements to the City's electric light system. That said Bonds shall be designated CITY OF GEORGETOWN UTILITY STSTEM REVENUE BONDS, SERIES 1966, and shall be payable, together with the outstanding "City of Georgetown Utility System Revenue Bonds, Series 1964, dated June 1, 1964, solely from and secured by a first lien on and pledge of the revenues of the City's com- bined waterworks, sewer and electric light system, after deduction of reasonable operation and maintenance expenses, as such expenses are defined by statute. Section 2. That said Bonds shall be.dated June 1, 1966; shall be number- ed consecutively from One (1) to Sixty-five (65), both inclusive; shall be of the denomination of Five Thousand Dollars (%,000.00) each; and shall become due and payable serially in accordance with the following schedule: BOND NUMBERS (Inclusive 11aturity dates AMOUNTS 1 - B June 1, 1967 $10,000 3 - 4 June 1, 1968 10,000 5 - 6 June 1, 1969 10,000 7 - 8 June 1, 1970 10,000 9 - 10 June 1, 1971 10,000 11 - 12 June 1, 1972 10,000 13 - 14 June 1, 1973 10,000 15 - 17 June 1, 1974 15,000 18 - 21 June 1, 1975 20,000 22 - 25 June 1, 1976 20,000 26 - 29 June 1, 1977 20,000 30 - 33 June 1, 1978 20,000 34 - 37 June 1, 1979 20,000 38 - 41 June 1, 1980 20,000 42 - 45 June 1, 1981 20,000 46 - 49 June 1, 1982- 20,000 50 - 53 June 1, 1983 20,000 54 - 57 June 1, 1984 20,000 58 - 61 June 1, 1985 20,000 62 - 65 June 1, 1986 20,000 Section 3. That said Bonds shall bear interest from date until paid as follows: June 1, 1967 thru June 1, 1975 - 3.75% June 1, 1976 thra June 1, 1986 - 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 1st and December lst in each year. Section 4. That both principal of and interest on the Bonds shall be payable in lawful money of the United States of America, upon presen- tation and surrender of Bonds or proper coupons at the Citizens State Bank, Gerogetown, Texas, or, at the option of the bearer, at the First National Bank, Gerogetown, 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 of Georgetown, Texas, and countersigned by the imprinted facsimile signa- ture of the City Secretary, and 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 deputy designated in writing to act for the Comptroller, shall be required to be manually subscribed to such Bonds in connection with his registration certificate to appear thereon as herein provided, all in accordance with the provisions of Article 717j-1, Vernon's Civil Statutes of Texas, 1925, as amended. 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 form: NO. UNITED STATES OF AMERICA $ 5,000 STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF GEORGETOWN UTILITY STSTEM REVENUE BOND, SERIES 1966 The City of Georgetown, a lawfully created and existing municipal cor- poration in Williamson County, Texas, FOR VALUE RECEIVED, hereby promises to pay to bearer, solely from the special funds hereinafter specified, the sum of FIVE THOUSAND DOLLARS ( $5,000.00), on the 1st day of June, 19 , and from said special funds, to pay interest thereon from the date hereof at the rate of _ percent () per annum, on December 1, 1966, and thereafter semi-annually on June 1st and December 1st in each year until the principal amount of this Bond shall have been paid. The principal of this Bond and the interest coupons attached hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this Bond or proper interest coupons at the Citizens State Bank, Georgetown, Texas, or, at the .option of the bearer, at the First National Bank, Georgetown, Texas, or at the option of the bearer, at This Bond is one of a Series of 65 Bonds, numbered consecutively from 1 to 65, inclusive, of the denomination of Five Thousand Dollars ($5,000.00) each, aggregating Three Hundred Twenty-five Thousand Dollars ($325,000.00), (being the first parcel or installment of a total voted authoriztion of $400,000); Bonds of said Series in the amount of $45,000.00 being issued by the City of Georgetown, Texas, for the purpose of,aonstructing extensions and 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 extensions and improve- ments to the City's sewer system, and Bonds of said Series in the amount of $200,000.00 being issued for the purpose of constructing extensions and im- provements to the City's electric light system, in accordance with the Con- stitution and laws of the State of Texas, particularly Articles 1111 - 1118, both inclusive, of the Revised Civil Statntes of Texas, 1925, as amended, and by authority of a vote of the qualified property taxpaying voters of the City of Georgetown, Texas, who owned taxable property therein and who had duly rendered the same for taxation, voting at an election held for that purpose within said City on February 26, 1966, and pursuant to an ordinance passed by the City Council of the City of Georgetown and duly recorded in the Minutes of said City Council. This Bond, and all Bonds of the Series of which it is one, together with the "City of Georgetown Utility System Revenue Bonds, Series 1964," dated June 1, 1964 (Herein collectively called the "Parity Bonds"), constitute special obligations of the City of Georgetown, each payable as to both principal and interest and equally secured by a first lien on and pledge of the net revenues of the City's combined waterworks, sewer and electric light system, in- cluding all additions, extensions and improvements thereto which may hereafter be made (hereinafter referred to as the "Utility System"), after deduction of reasonable expenses of operation and maintenance. The City reserves the right to issue not only the $5,000.00 balance of revenue bonds authorized at the election held February 26, 1966, for the purpose of constructing extensions and improvements to its waterworks system and the $70,000.00 balance of revenue bonds authorized at said election for the purpose of constructing extensions and improvements to its sewer system, but also further and additional bonds, in all things on a parity with the Parity Bonds, and payable from and equally secured by a first lien on and pledge of the net revenues of the City's Utility System; PROVIDED, HOWEVER., that any and 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 more complete and full particulars. The holder hereof shall never have the right to demand payment of this ob- ligation out of any funds raised or to be raised by taxation. Each holder of this Bond, payable to bearer, or of the interest coupons hereto attached, is conclusively presumed to forego and renounce his egr�ities in favor of subsequent holders for value without notice and to agree that, being payable to bearer, this Bond, and each of the interest coupons attached, may be negotiated by delivery howsover possession may have been acquired; and that any subsequent holder 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 HEREBY CERTIFIED AND RECITED 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 ,L the issuance of this bond to render the same lawful and valid have been properly done, have happened and have 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 Bonds does not exceed any constitutional or statutory limitation; and that provision has been made for the payment of the principal of and the interest on this`Bond, and the Series of which it is a part, by irrevocably pledginf* the revenraes of the City's Utility System. IN WITNESS WHEREOF, this Bond and the interest corpons attached hereto have been signed by the imprinted facsimile signature of the Mayor of said City and countersigned 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: NO. ON THE 1ST DAY OF _ : _ , 19 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 Bank, George- town, Texas, or, at the option of the bearer, at The First National Bank. George- town, Texas, or, at the option of bearer at _ without exchange or collection charges to the bearer hereof, the sum of __ Dollars ( _); goo `TI in lawful money of the United States of America, said sum being six months' interest due that day on CITY OF GEORGETOWN UTILITY SYSTEM REVENUE BOND, SERIES 1966, dated June 1, 1966, No. , 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. Mayor, City of Georgetown, Texas City Secretary, City of Georgetown, Texas Section 8. That substantially the following shall be printed on the back of each Bond: COMPTROLLER'S RGISTRATION`CERTIFICATE: REGISTER NO. I HEREBY CERTIFY that this Bond has beer, examined, certified as to validity, and approved by the Attorney General of :the State of Texas; and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS MY SIGNATURE and seal this Comptroller of Public Accounts Of The State of Texas Section 9. Definitions. The following words, terms and expressions used in this Ordinance shall have the following meanings unless the context indicates or implies a different meaning: (a) "City" means the City of Georgetown. (b) "City Council" or "Council" means the governing body of the City of Georgetown. (c) "Bonds" shall mean the $325,000 of revenue bonds authorized by this Ordinance. (d) "Outstanding Bonds" shall mean the "City of Georgetown Utility Sys em RFvehu6 Bonds, Series 1964," dated June 1, 1964. (e) "Parity Bonds" shall mean collectively the Bonds and the Outstanding Bonds. (f) ".Additional Bonds" shall mean the additional parity revenue bonds per- mitted to be issued under the provisions of the Ordinances authorizing the Parity, Bonds. (g) "Utility System" shall mean the System created and established for and on behalf of the Cite under the provisions of the Ordinance authorizing the Outstanding Bonds and as defined in Section 10 of this Ordinance; (h) "Net Revenues" and "Pledged Revenues" shall mean the revenues de- rived from the operation of the Utility System as such revenues are defined and pledged in Section 11 of this Ordinance; (i) "Utility System Revenue Fund,"Utility System Revenue Bonds Interest and Sinking Fund," "Utility Systen Revenue Bonds Reserve Fund," and "Utility System Contingency Fund," shall mean the special funds which the City Council has D D 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 payment of principal of and interest on bonds outstanding against the Utility System, as hereinafter more spe- cifically stated. Section 10. Utility System. That the UTILITY SYSTK1 (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 light system now owned and operated by the City of Georgetown, Texas, together with all improvements, extensions and additions 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 a fiscal year commencing on September 1st of each year and ending on August 31st of the following Year. Section 11. Pledge 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 Ofrom the operation of the System, after deduction therefrom of the amount nec- essary to pay all operating, maintenance, replacement and betterment charges of U 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 times, while any of the Parity Bonds ar any Additional Bonds, or any interest thereon, are outstanding and unpaid, charge and collect for services rendered by said Utility System rates sufficient to pay all mainten- 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. Utility System 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 - C/N bf (-4Ct ,eA0t0i1-FY ard�ntinc¢ a�� C) tained separate and apart from all other funds of the City. Such 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 follows: (a) OPI.'RATION AND MAINTMANCB ERPFNSES: = The money in the Utility System Revenue Fund shall be used first for the payment of the reasonable and proper expenses of operating and maintaining the Utility System, including salaries, labor, materials, interest, repairs and extensions necessary to render efficient service. The words "repairs" and "extensions" as used in -dais paragraph shall be construed to refer only to such repairs and extensions, as in the .judgment of the governing body, of the City, are necessary to keep the System in operation and ren- der adequate service to the City and the inhabitants thereof, or such as might be n necessary to remedy some physical accident or condition which would otherwise impair the security of the Parity Bonds or any Additional Bonds`. (b) BOND FUND; The amounts to•be paid into the Utility System Revenue Bonds Interest and Sinking Fund (already established and hereinafter called the "Bond Fund") during each year in which any of the Parity Bonds, or any Additional Bonds, are outstanding, shall be an amount equal to 100 per centum of the amount required to meet the interest and principal payments falling due on or before the next maturity date of the Parity Bonds or any Additional Bonds then outstanding. On or before the loth day of each month, after payments have been made as required by subsection (a) of this Section 13, thre City shall withdraw from the Utility Sys* tem Revenue Fund and deposit in the Bond Fund an amount not less than the total of: 1/12th of the next maturing installment of principal of the Parity Bonds then outstanding, and of any additional Bonds then outstanding, and 1/6th of the next semi-annual installment of interest on the Parity Bonds then outstanding and on any Additional Bonds then outstanding. The monies in the Bond Fund shall be used F solely for the purpose of paying the interest on and the principal of the Parity Bonds, and any Additional Bonds, until all such bonds have been retired. In the event the income and revenues of the Utility System are insufficient in any month to permit the required deposits into the Bond Fund in full accord with the provisions hereof, then the amount of any deficiency shall be added to the amount otherwise required to be deposited in said Bond Fund in the next month, � until all deficiencies are rectified. That concurrently with the delivery of the Bonds to the purchasers thereof, all sums of money received from the purchasers as accrued interest paid on the Bonds shall be placed in the Bond Fund. (c) RESERVE F►JND: Commencing June 10, 1966, and on or before the loth day of each month thereafter, after payments have been made as required by sub- sections (a) and (b) of this Section 13, the City shall withdraw from the Utility System Revenue Fund and deposit in the Utility System Revenue Bonds Reserve Fund (already established and hereinafter called the "Reserve Fund"), in addi- tion to the payments and deposits otherwise required to be made therein, the sum of $341.00 until an additional debt service reserve of $24,495.00 on the out- standing Bonds has been established, and thereafter, such sums monthly as may be necessary to maintain the required reserve of $55,884.00 on the Parity Bonds. The City covenants and agrees that in the event Additional Bonds are issued as hereinafter provided, the Ordinance authorizing such Additional Bonds shall provide for the payment into the Reserve Fund of such additional sums as shall be necessary to permit an accumulation in the Reserve Fund, within six years from the date of the Additional Bonds, as an additional reserve, of an amount t7 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 Reserve Fund after there shall have beed'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 Depository 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 na turities 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, U 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 Idditional 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 shall 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 a 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 any money is paid out of said Fund, payments into the Fund shall be resumed and continued until such time as the Fund has 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 obligations of or obligations unconditionally guaranteed by the United States Government, having maturities not in excess of five (5) years from the date of the making of such investment, as the City 0 Council may direct. Any obligations in which money is so invested shall be kept in escrow in said Depository and shall be promptly sold and the proceeds of sale applied to the making of payments required to be made from the Contin- gency Fund, whenever such payments are required to be mode under the foregoing provisions df this Ordinance. (e) SURPLUS FUNDS: All moneys remaining in the Utility System Revenue Fund after the requirements of subsections (a), (b). (c), and (d) of this Sec- tion 13 have been met (including any increased payments into the aforesaid Bond Fund, Reserve Fund, and Contingency Fund as may be necessary by reason of the issuance of Additional Bonds in the future under the provisions of the Ordinances authorizing the Parity Bonds), and after all deficiencies shall have been made up and all replacements made, shall be either used or accumulated for the making of improvements, extensions and additions to the Utility System, or may, in the discretion of the City be used for any other proper city purpose now or hereafter permitted by law, including the use thereof in re- tiring in advance of maturity any Additional Bonds then outstanding, in accord- ance with provisions made for their prior redemption, or may be used to pur- chase the Parity Bonds and Additional Bonds on the open market at not exceeding the market value thereof. All bonds so paid, redeemed or purchased shall be cancelled and shall not be re -issued. Nothing herein shall be construed, how- ever, as impairing the right of the City to pay in accordance with the pro- visions thereof any junior lien bonds hereafter legally issued by it. Section 14. SecuritZ for Funds. All monies which are to be paid into the Depository under the provisions of the Ordinances authorizing the Parity Bonds shall be secured in accordance with the laws of the State of Texas ap- plicable thereto, and the City covenants especially that such money shall be continuously secured by a valid pledge of direct obligations of, or obligations unconditionally guaranteed by, the United States of America, having a par value, or market value when less than par, exclusive of accrued interest, at all times at least equal to the total amount of money on deposit in the several Funds in the Depository. Section 15. Additional Bonds. In addition to the right to issue bonds of inferior lien as authorized by the laws of this State, the City of George- town reserves the right to issue not only the $75,000.00 balance of revenue bonds voted at the election held February 26, 1966, and which is not herein authorized to be issued, but also further and additional bonds from time to time payable from the net income and revenues of the Utility System; and, when issued in compliance with law and the terms and conditions hereinafter appearing, such Additional Bonds shall be equally secured by a first lien on and pledge of the Pledged Revenues; and the Additional Bonds, when issued, shall be payable from the Utility System Revenue Bonds Interest and Sinking Fund and shall be in all respects of equal dignity and on a parity with the Parity Bonds, PROVIDED , that in each instance: (a) The Additional Bonds are authorized and issued in conformity with the Constitution and applicable Statutes of the State of Texas; (b) The Bond Fund, the Reserve Fund, and the Contingency Fund contain the amount of money then required to be on deposit therein and the City is in compliance with all other covenants and undertakings in connection with all e� bonds then outstanding and payable from the net revenues of the Utility System; (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 then 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 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; (H) 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 with the provisions of this Ordinance. Section 16. Maintenance and Operrition. The City hereby covenants and agrees to maintain the facilities of the Utility System in good condition and operate the same 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 premiums 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 damage 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 condidered as maintenance and operation expenses. Section IT. 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 to said System as provided in Article 1113, Revised Civil Statutes of Texas, 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 properties comprising same. The City further agrees that within sixty (60) days I following the close of each fiscal year, it will cause an audit of such 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 whatever other matters may be thought proper by the Accountant, shall particularly include the follow- ing: (a) A detailed statement of the income and expenditures for account of the Utility System for such fiscal ,year. (b) A balance sheet as of the end of such fiscal year. (c) The Accountant's comments regarding the manner in which the City has carried out the requirements of this Ordinance and his recommendations for any changes or improvements in the operation, records and accounts of the Utility System. (d) A list of the insurance policies in force at the end of the fis- cal year on the Utility System properties, setting out as to each policy the amount thereof, the risk covered, the name of the insurer; and the policy's expiration date. (e) A list of the securities which have been on deposit as security for the money in the Bond Fund, the Reserve Fund and the Contingency Fund throughout the fiscal year; a list of the securities, if any, in which the Reserve Fund and the Contingency Fund have been invested, and a statement of the manner in which money in the Utility System Revenue Fund has been secured in such fiscal year. (f) The number of metered and unmetered customers connected with the various departments of the Utility System, showing totals as of the end of the year. Expenses incurred in making the audits above required are to be paid as maintenance and operation expenses. The City further agrees to promptly furnish a copy of each such audit to First Southwest Company, Dallas, Texas, Rauscher, Pierce & Company, San Antonio, Texas and to any holder of any of the Bonds who shall request same in writing, and that the holder of any of the Bonds shall have the right to discuss with the accountant making the audit the contents of the audit and to ask for such additional information as he may reasonably request. Section 18. Sale. Lease or other Encumbrance of System. The City here- by covenants, binds and obligates itself not to sell, lease or in any manner dispose of the Utility System, or any part thereof, including 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 connection with the j Utility System when other property of equal value has been substituted i therefor). Section 19. No Competing System. That so far as it legally may, the City covenants and agrees, for the protection and security of the Bonds and the holders thereof from time to time that it will 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 Default. In addition to all the rights and remedies provided by the laws of the State of Texas, the City 7 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 avail- able: (a) The holder or holders of any of the Bonds issued hereunder shall be en- titled to a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the City Council and other officers of the City to observe and per- form 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 U exclusive. Section 21. Special Covenants and Conditions. (a) The'City will duly and punctually keep, observe and perform each and every term, 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 sufficient to meet all the requirements of the Ordinances authorizing the Parity Bonds; and the proper segregation and 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 hands 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 nearer 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, dated 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 a contract between the City and 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 provisions 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. 1 Section 23, ApT)roval and Registration of Bonds. That the Bonds and a complete record of proceedings shall be submitted to the Attorney General for his approval. After the Bonds have been approved by the Attorney General, they shall be left in the care and custody of the Comptroller of Public Accounts of the State of -Texas, and the State Comptroller is hereby authorized to deliver the Bonds, after registration thereof, to The Austin National Bank in Austin, Texas. Section 24. Confirmation of Sale. That the sale of the Bonds to First Southwest Company - Rauscher, Pierce R Company at a price of par and accrued interest to date of delivery, plus a cash premium of �, is hereby confirmed. Delivery of the Bonds to said purchasers shall be inade as soon as may be after the passage of this Ordinance, upon payment therefor in accordance with the terms of sale. Section 25. IT IS HEREBY CERTIFIED AND RECITED by the City Council: (a) That the City is in compliance with all covenants and undertakings in connection with the Outstanding Bonds; and (b) That in issuing the Bonds, the City has complied with all the requirements pertaining thereto as set forth in the Ordinance authorizing the issuance of the Outstanding Bonds. Section 26. Fnergency. The fact that the City Council considers the passage of this Ordinance and the issuance of the Bonds necessary for the preservation of the public health and safety of the citizens of the City of Georgetown, 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 APPRGVED this 2nd day of May, 1966. ATTEST: City Secretary Mayor, City of Georgetown, Texas 9. STATE OF TEXAS COUNTY OF WILLIAMSON Petition No. 4 IMERF.AS, the undersigned, owner of one (1) parcel of land contiguous and adjacent to the present boundary line of the City of Georgetown, Texas, said parcel of land not exceeding one-half (D mile in width and further being vacant and without residents, in accordance with Section 974g of VATS hereby petition the Governing Body of the City of Georgetown, Texas, to accept the said parcel of land within its corporate boundaries that it may receive all the benefits and privileges of being a part of the City of Georgetown, Texas; and WHEREAS, a map of the area is attached hereto and marked as Exhibit "A", the said parcel of land being more particularly described by metes and bounds as follows: Parcel No. 1 BEGINNING at a point in the east right of way of existing U.S. Highway 81, opposite Interstate Highway 35, Survey Station 708+50.8; and U THENCE N 16*55' E, along said existing east right of way, a distance of 950.8 feet to a point of intersection with the east right of way Interstate Highway 35; and THENCE N 21*51',E, along said east right of way, a distance of 480 feet; and - THENCE N 26*45' E, along said east right of way, a distance of 1206.8 feet; and THENCF N 67*49' W, along a line that passes through Interstate Highway, 35, Survey Station 682+50, for a distance of 466.40 feet to a point in the west right of way line of Interstate Highway 35. This line being the new North City Limits of Georgetown, Texas; and THENCE southwesterly along said west right of way -which is on a curve, having a radius of 11,409.2 feet for a distance of 1217.7 feet to a point which is a P.C.C.; and THENCE southwesterly along said west right of way which is on a curve, having a radius of 1095.9 feet for a distance of 441.1 feet to a point which is a P.R.C.; and THENCE S 63*15' E, along a line that passes through Interstate Highway 35, Survey Station 708+50.8, for a distance 689.6 feet to a point being in the existing east right of way of U.S. Highway 81, which is the point of beginning. Texas Highway Department District Engineer