ORDINANCE NO. 245
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r'C=T"Y OF SCIi.ERTZ. ~EXAS UTILITY SYS'lEN
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~EVE:N'J2 BONuS. SSRIES 1972, II DATED r-ll\RCE L,
=-972
TEL STA iE OF TEXAS
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CGJN~=ES OF GUADALUPE
Al\1} BEXAR
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SCHERTZ
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ON THIS, the 2nd day of March, 1972, the City Council of
'~'-:--i;::' r'..; 'o'-y oJ:':: C:c"e"rT-z r;-t~""'as ~onvened -j.,..., regular s ss ~t ~"'e
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r~gu~~~ ~eet~n~ place the~eof in the City Hall, the weeting being
O?2~ ~o the ?liolic and notice of said meeting, giving the date,
p~~cc and subject thereof, having been posted as prescribed by
A::'::.cLe 6252-17, Section 3A, V.A.T.C.S., with the following
mC~Ders present and in attendance, to wit:
RJY ',J. RICF~RD
VJ\ YOR
?.A 'EvIOND G. KO'Y}'I
~OBERT E. SC~wARTZ
~~J~ K. ~lli;M3LESS
:"=:"hvIIE V. DUI\hAM
l<~S. BOBBIE L. KOCH
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ALDEfu'1EN
a~~ with the following absent:
ce~s~icutirrg a quorum; and among other proceedings had were the
=C::"'lG'~l::'ng:
7he Mayer introduced a proposed ordinanGe. The ordinance
WES re~G ~n full.
A lderma:1 Koch made a motion tha t cray rtli..c
~2~u~~~ng orcin8nces to be read more than one time or at ~0re than
0~2 ~s2~ing be suspended~ and that said ordinance be passed as a~
emergency measure. The motion was seconded by Alderman
KO~11 anG carried by the following vote:
A~ES; Aldermen Koym, Schwartz, Chambless and
Dunham, and Alderwoman Koch.
"'OES: ::;Jane.
A:c.lcrw<1n
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Schvrartz mad8 a motion th~1t the ordi-
finally. The motion was seconded by Alderman
and carried by the following vote:
AYES; Aldermen Koym, Schwartz, Chambless and
Dunham, and Alderwoman Koch.
:~8ES: None.
The ~ayor announced that the ordinance had been finally passed.
7he ORDINANCE is as follows:
AN ORDINANCE by the City Council of the City of
Schertz, Texas, authorizing the issuance of
$35,000 "CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM
REVENUE BONDS, SERIES 1972," dated March 1, 1972,
for the purpose of improving and extending the
City's Waterworks System, as authorized by the
General Laws of the State of Texas, particularly
Article 1111 et seq., V.A.T.C.S.; prescribing the
, form of the bonds and the form of the interest
coupons; pledging the net revenues of the City's
combined Waterworks and Sanitary Sewer System to
the payment of principal of and interest on said
bonds; providing that in the event of the later
acquisition by said City of an electric light and
power system and/or a natural gas system, the bonds, pre-
viously issued bonds and all revenue bonds issued for
the purpose of acquiring any such system (either or
both) shall be payable from and equally secured by
a first lien on and pledge of the net revenues of
the City's combined Waterworks, Sanitary Sewer,
Electric Light and Power and/or Natural Gas Systems;
providing terms and conditions for the issuance of
additional parity bonds; enacting provisions inci-
dent and relating to the subject and purpose of this
ordinance; and declaring an emergency.
WHEREAS, at an election held in the City of Schertz, Texas,
on the 30th day of October, 1971, the governing body of the City
of Schertz became authorized and empowered to issue $200,000
special obligation bonds for the purpose of improving and extend-
ing the City's Waterworks System, said bonds to mature in not
to exceed forty (40) years from their date, to be payable solely
from and equally secured by a pledge of the net revenues from the
operation of the City's combined Waterworks and Sanitary Sewer
System, and in the event of the later acquisition of an electric
light and power system and/or natural gas system, such bonds may
also be secured by a pledge of the net revenues of all of such
combined Waterworks, Sanitary Sewer, Electric Light and Power
and/or Natural Gas Systems; and,
WHEREAS, this City Council now considers it necessary and
advisable to proceed with the issuance of $35,000 bonds autho-
rized for WaterwJrks purposes at the aforesaid election, the
City Council reserving unto itself the right and authority to
issue and sell in one or more installments the balance of the
bonds authorized but unissued for such purpose, when in the
judgment of said City Council the amounts thereof arc needed
by the City for the purpose for which authorized, provided that
the issuance of such additional bonds shall be governed by the
provisions relating thereto hereinafter set forth; and,
WHEREAS, the aforesaid bonds in the amount of $35,000 are
to be issued on a parity with the previously issued bonds (here-
inafter defined) so as to be equally and ratably secured by a
first lien on and pledge of the net revenues of the City's com-
bined Waterworks and Sanitary Sewer System, and in the event of
the acquisition of an electric light and power system and/or
natural gas system, secured by a first lien on and pledge of
the net revenues of the City's combined Waterworks, Sanitary
Sewer, Electric Light and Power and/or Natural Gas Systems; and,
WHEREAS, this City Council finds and determines that the
conditions for the issuance of additional bonds as set forth in
the ordinance authorizing the previously issued bonds have been
met in that: (a) the City is not in default as to any covenant,
condition or obligation prescribed by the ordinance authorizing
the previously issued bonds; (b) the laws of the State of Texas
in force at such time provide permission for the issuance of
such bonds; (c) each of the Funds created by the ordinance
authorizing the previously issued bonds contains the amount of
money required to be on deposit therein; (d) the net revenues
of the System for the completed twelve (12) months immediately
preceding the adoption of the ordinance authorizing the issuance
of the additional bonds are equal to at least one and one-half
(1-1/2) times the average annual requirement for the payment of
principal and interest on the previously issued bonds and the
proposed additional bonds, as shown by a report by a Certified
Public Accountant or a Licensed Public Accountant; and,
WHEREAS, it is now found and determined that the aforesaid
$35,000 in bonds should be issued at the interest rate or rates
and be sold for the price or prices hereinafter set forth; now,
therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS:
SECTION 1: Authorization - Principal Amount - Designation.
That in order to borrow the sum of THIRTY-FIVE THOUSAND DOLLARS
($35,000) for the purpose of improving and extending the City's
Waterworks System, the City Council of the City of Schertz,
Texas, by virtue of the authority expressly conferred at the
aforesaid election and pursuant to the General Laws of the State
of Texas, particularly Article 1111 et seq., V.A.T.C.S., has
determined that there shall be issued and there is hereby ordered
to be issued a series of coupon bonds, to be designated "CITY OF
SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES 1972,"
aggregating the sum of THIRTY-FIVE THOUSAND DOLLARS ($35,000),
which said series of bonds, together with the outstanding and
unpaid previously issued bonds (as herein defined) shall be pay-
able as to both principal and interest solely from and equally
secured by a first lien on and pledge of the net revenues of the
City's combined Waterworks and Sanitary Sewer System; provided,
however, that in the event of the later acquisition of an electric
light and power system and/or natural gas system, any revenue bonds
issued for the acquisition of any such system or systems and the
bonds and previously issued bonds, as well as bonds hereafter
issued on a parity with the bonds and previously issued bonds,
shall be payable from and equally secured by a first lien on
and pledge of the net revenues of the City's combined Waterworks,
Sanitary Sewer, Electric Light and Power and/or Natural Gas Systems
in such manner that no one bond of any ofsuch~sues shall have pri-
ority of lien over any other bond of said issues.
SECTION 2: Date - Numbers - Maturity. That said bonds
shall be dated March 1, 1972; shall be numbered consecutively
from One (1) through Seven (7); shall each be in denomination
of Five Thousand Dollars ($5,000); and shall become due and pay-
able serially, without right of prior redemption, on September 1
in each of the years in accordance with the following schedule:
3C~~~ ~lTM3=RS
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YA'I'U:c,~=TY
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1972
$ - ,-'~
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1973
:'974
1975
1976
1977
1978
5, GC<J
5,00'J
5,000
5,CCQ
5,000
5,000
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SECTIO~ j: Interest. That said bonds shall bear interest
~::om aate to maturity at the following rates per annum:
(a) Bonds ma turing in each of the years 1972
t:w'ough 19~ at 5 %; and
~b '\ Bonds mat'l:ring in each of the years 19
\. ) -
through 19 at J:.
- 0,
s~ch inte~est to be evidenced by proper coupons attached ~0 each
of said Donds; and said interest shall be payable on Septemte~ 1,
:'972, and semiannually thereafter on March 1 and Septembe~ 1 in
2c..Ct~ year.
SECTION 4: Place of Payment. That both principal of and
i~terest on this issue of bonds shall be payable in lawful Doney
of t~2 United States of America, without exchange or collect~on
8~arges to the owner or holder, at the MAIN BA~1{ AND TRUST, San
A~to~~o, Texas, upon presentation and surrender of bonds or proper
CCU?or:s.
SEC~ION 5: E:'!:::ecution of Bonds and Coupons. That the. 32&1
C~ sa~d City may be impressed on each of said bonds o~, in the
a:'te~native, a facsimile of such seal may be printed on the said
cones. The bonds and inte~est coupons appurtenant the~2to may
02 executed by the imprinted facsimile signatures or tho Mayor
and City Secretary of the City and execution in such menner shall
23ve the same effect as if such bonds and coupons had been signed
21 tGe Mayor and City Secretary in person by their marrcs:' signa-
~c,res. Inasmuch as such bonds are required to be ~egis~ered ~y
~~e Comptroller of Public Accounts for the State of Texas, only
h~s signature (or that of a deputy designated in writing ~o ec~
for ~he Comptroller) shall be required to be manually subscribed
to such bonds in connection with his registration certificate to
cp?ear thereon, as hereinafter provided; all in accordance with
cnu ?rovisions of Article 7l7j-l, V.A.T.C.S.
SECTION 6: Form of Bonds. That the form of said bonds
s~all be substantially as follows:
xc.
UNITED STATES OF AMERICA
$5,000
STATE OF TEXAS
COUNTIES OF GUADALUPE AND BEXAR
CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM REVE1~E
BOND, SERIES 1972
FOR VALUE RECEIVED, the CITY OF SCHERTZ, a municipal corpora-
tion of the State of Texas, hereby acknowledges itself indebted to
and promises to pay to bearer, as hereinafter stated, without
right of prior redemption, on the FIRST DAY OF SEPTEMBER, 19____,
the sum of
FIVE THOUSAND DOLLARS
($5,000), in lawful money of the United States of America, with
interest thereon from the date hereof to maturity at the rate of
PER CENTUl1 ( %) per annum, payable on September 1,
1972, and semiannually thereafter on March 1 and September 1 in
each year, and interest falling due on or prior to maturity hereof
is payable only upon presentation and surrender of the interest
coupons hereto attached as they severally become due.
BOTH PRINCIPAL OF and interest on this bond are hereby made
payable at the MAIN BANK AND TRUST, San Antonio, Texas, without
exchange or collection charges to the owner or holder, and the
said City of Schertz, Texas, is hereby held and firmly bound to
apply the pledged appropriated net revenues of its combined Water-
works and Sanitary Sewer System, and in the event of the later
acquisition of an electric light and power system and/or natural
gas system, the revenues of all of such combined Waterworks, Sani-
tary Sewer, Electric Light and Power and/or Natural Gas Systems,
to the prompt payment of principal of and interest on this bond
at maturity and to pay said principal and interest as they mature.
THIS BOND is one of a series of bonds of like tenor and ef-
fect, except as to number, interest rate and maturity, aggregating
in amount THIRTY-FIVE THOUSAND DOLLARS ($35,000), numbered con-
secutively from One (1) through Seven (7), each in denomination
of Five Thousand Dollars ($5,000), issued for the purpose of
improving and extending the City's Waterworks System, in accor-
dance with the Constitution and laws of the State of Texas,
particularly Article 1111 et seq., V.A.T.C.S., and by authority
expressly conferred at an election held for that purpose within
said City, and pursuant to an ordinance passed by the City
Council of the City of Schertz, Texas, and duly recorded in
the Minutes of said City Council.
THE DATE of this bond in conformity with the ordinance above
mentioned is MARCH 1, 1972.
THIS BOND and the series of which it is a part constitute
special obligations of the City of Schertz, Texas, and, together
with the outstanding and unpaid previously issued bonds (as de-
fined in the ordinance authorizing the series of bonds of which
this is one) are payable solely from and equally secured by a
first lien on and pledge of the net revenues of the City's com-
bined Waterworks and Sanitary Sewer System; provided, however,
that in the event of the later acquisition of an electric light
and power system and/or natural gas system and the issuance of
revenue bonds in connection therewith, then the bonds and previ-
ously issued bonds together with any such revenue bonds shall be
payable from and equally secured by a first lien on and pledge of
the net revenues of the City's combined Waterworks, Sanitary Sewer,
Electric Light and Power and/or Natural Gas Systems.
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ORDINANCE AUTHORIZING ISSUANCE OF 53' 000
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"CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM
REVENUE BOl'<'DS, SERIES 1972," DATED MARCH 1,
1972
THE STATE OF TEXAS
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COUNTIES OF GUADALUPE
Al'<'D BEXAR
CITY
OF
SCHERTZ
ON THIS, the 2nd day of March, 1972, the City Council of
'the City of Schertz, Texas, convened in regular session at the
regular meeting place thereof in the City Hall, the meeting being
open to the public and notice of said meeting, giving the date,
place and subject thereof, having been posted as prescribed by
Ar~icle 6252-17, Section 3A, V.A.T.C.S., with the following
,i members present and in attendance, to wit:
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,I coc.stituting a quorum; and among other proceedings had were the
',I fcllow~ng:
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if AIel
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:: nance be passed
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ROY W. RICHARD
MAYOR
RAYMOND G. KOYM
ROBERT E. SChlNARTZ
LEON R. ~dAMBLESS
~I~~IE V. DUl'<tffiM
}CRS. BOBBIE L. KOCH
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ALDERMEN
was
The Mayor introduced a proposed ordinance.
read in full.
The ordinance
Alderman Koch made a motion tha t any rule
requiring ordinances to be read more than one time or at more than
one meeting be suspended, and that said ordinance be passed as an
emergency measure. The motion was seconded by Alderman
Koym and carried by the following vote:
AYES:
Aldermen Koym, Schwartz, Chambless and
Dunham, and Alderwoman Koch.
NOES:
None.
Sch.rortz made a motion th2t the ordi-
finally. The motion was seconded by Alderman
and carried by the following vote:
AYES: Aldermen Koym, Schwartz, Chambless and
Dunham, and Alderwoman Koch.
NOES: None.
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The Mayor announced that the ordinance had been finally passed. !
The ORDINANCE is as follows:
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AN ORDINANCE by the City Council of the City of
Schertz, Texas, authorizing the issuance of
$35,000 "CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM
REVENUE BONDS, SERIES 1972," dated March 1, 1972,
for the'purpose of improving and extending the
City's Waterworks System, as authorized by the
General Laws of the State of Texas, particularly
Article 1111 et seq., V.A.T,C.S.; prescribing the
form of the bonds and the form of the interest
coupons; pledging the net revenues of the City's
combined Waterworks and Sanitary Sewer System to
the payment of principal of and interest on said
bonds; providing that in the event of the later
acquisition by said City of an electric light and
power system and/or a natural gas system, the bonds, pre-
viously issued bonds and all revenue bonds issued for
the purpose of acquiring any such system (either or
both) shall be payable from and equally secured by
a first lien on and pledge of the net revenues of
the City's combined Waterworks, Sanitary Sewer,
Electric Light and Power and/or Natural Gas Systems;
providing terms and conditions for the issuance of
additional parity bonds; enacting provisions inci-
dent and relating to the subject and purpose of this
ordinance; and declaring an emergency.
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WHEREAS, at an election held in the City of Schertz, Texas,
on the 30th day of October, 1971, the governing body of the City
of Schertz became authorized and empowered to issue $200,000
special obligation bonds for the purpose of improving and extend-
ing the City's Waterworks System, said bonds to mature in not
to exceed forty (40) years from their date, to be payable solely
from and equally secured by a pledge of the net revenues from the
operation of the City's combined Waterworks and Sanitary Sewer
System, and in the event of the later acquisition of an electric
light and power system and/or natural gas system, such bonds may
also be secured by a pledge of the net revenues of all of such
combined Waterworks, Sanitary Sewer, Electric Light and Power
and/or Natural Gas Systems; and,
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WHEREAS, this City Council now considers it necessary and
advisable to proceed with the issuance of $35,000 bonds autho-
rized for Waterworks purposes at the aforesaid election, the
City Council reserving unto itself the right and authority to
issue and sell in one or more installments the balance of the
bonds authorized but unissued for such purpose, when in the
judgment of said City Council the amounts thereof are needed
by the City for the purpose for which authorized, provided that
the issuance of such additional bonds shall be governed by the
provisions relating thereto hereinafter set forth; and,
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WHEREAS, the aforesaid bonds in the amount of $35,000 are
to be issued on a parity with the previously issued bonds (here-
inafter defined) so as to be equally and ratably secured by a
first lien on and pledge of the net revenues of the City's com-
bined Waterworks and Sanitary Sewer System, and in the event of
the acquisition of an electric light and power system and/or
natural gas system, secured by a first lien on and pledge of
the net revenues of the City's combined Waterworks, Sanitary
Sewer, Electric Light and Power and/or Natural Gas Systems; and,
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WHEREAS, this City Council finds and determines that the
conditions for the issuance of additional bonds as set forth in
the ordinance authorizing the previously issued bonds have been
met in that: (a) the City is not in default as to any covenant,
condition or obligation prescribed by the ordinance authorizing
the previously issued bonds; (b) the laws of the State of Texas
in force at such time provide permission for the issuance of
such bonds; (c) each of the Funds created by the ordinance
authorizing the previously issued bonds contains the amount of
money required to be on deposit therein; (d) the net revenues
of the System for the completed twelve (12) months immediately
preceding the adoption of the ordinance authorizing the issuance
of the additional bonds are equal to at least one and one-half
(1-1/2) times the average annual requirement for the payment of
principal and interest on the previously issued bonds and the
proposed additional bonds, as shown by a report by a Certified
Public Accountant or a Licensed Public Accountant; and,
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WHEREAS, it is now found and determined that the aforesaid
$35,000 in bonds should be issued at the interest rate or rates
and be sold for the price or prices hereinafter set forth; now,
therefore, .
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS:
SECTION 1: Authorization - Principal Amount - Designation.
That in order to borrow the sum of THIRTY-FIVE THOUSAND DOLLARS
($35,000) for the purpose of improving and extending the City's
Waterworks System, the City Council of the City of Schertz,
Texas, by virtue of the authority expressly conferred at the
aforesaid election and pursuant to the General Laws of the State
of Texas, particularly Article 1111 et seq., V.A.T.C.S., has
determined that there shall be issued and there is hereby ordered
to be issued a series of coupon bonds, to be designated "CITY OF
SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES 1972,"
aggregating the sum of THIRTY-FIVE THOUSAND DOLLARS ($35,000),
which said series of bonds, together with the outstanding and
unpaid previously issued bonds (as herein defined) shall be pay-
able as to both principal and interest solely from and equally
secured by a first lien on and pledge of the net revenues of the
City's combined Waterworks and Sanitary Sewer System; provided,
however, that in the event of the later acquisition of an electric
light and power system and/or natural gas system, any revenue bonds
issued for the acquisition of any such system or systems and the
bonds and previously issued bonds, as well as bonds hereafter
issued on a parity with the bonds and previously issued bonds,
sholl be payable from and equally secured by a first lien on I
and pledge of the net revenues of the City's combined Waterworks, I
Sanitary Sewer, Electric Light and Power and/or Natural Gas Systems i
in such manner that no one bond of any ofsuch~sues shall have pri-'I:
ority of lien over any other bond of said issues.
,
SECTION 2: Date - Numbers - Maturity. That said bonds
shall be dated March 1, 1972; shall be numbered consecutively
from One (1) through Seven (7); shall each be in denomination
of Five Thousand Dollars ($5,000); and shall become due and pay-
able serially, without right of prior redemption, on September 1
in each of the years in accordance with the following schedule:
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BO})jJ) l'H.JMBERS
(All Inclusive)
lVATURITY
!-:.YiC'Jl'C'
1
2
3
4
5
6
7
1972
1973
1974
1975
1976
1977
1978
$5,000
5,000
5,000
5,000
5,000
5,000
5,000
SECTION 3: Interest. That said bonds shall bear interest
from date to maturity at the following rates per annum:
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(a) Bonds maturing in each of the years 1972
through 1978 at 5 %; and
(b) Bonds matc:ring in each of the years 19
through 19 at ".
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s~ch interest to be evidenced by proper coupons attached to each
of said bonds; and said interest shall be payable on September 1,
i972, and semiannually thereafter on March 1 and September 1 in
each year.
SECTION 4: Place of Payment. That both principal of and
i~terest on this issue of bonds shall be payable in lawful money
of the United States of America, without exchange or collection
charges to the owner or holder, at the MAIN BA11( AND TRUST, San
Antonio, Texas, upon presentation and surrender of bonds or proper
coupons.
SECTION 5: E~ecution of Bonds and Coupons. That the seal
of said City may be impressed on each of said bonds or, in the
alternative, a facsimile of such seal may be printed on the said
bonds. The bonds and interest coupons appurtenant thereto may
be executed by the imprinted facsimile signatures of the Mayor
and City Secretary of the City and execution 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 signa-
~ures. Inasmuch as such bonds are required to be registered by
the Comptroller of Public Accounts for 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 hereinafter provided; all in accordance with
thc provisions of Article 7l7j-l, V.A.T.C.S.
SECTION 6: Form of Bonds. That the form of said bonds
shall be substantially as follows:
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UNITED STATES OF AMERICA
$5,000
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STATE OF TEXAS
COUNTIES OF GUADALUPE AND BEXAR
CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE
BOND, SERIES 1972
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i BOTH PRINCIPAL OF and interest on this bond are hereby made
!,I payable at the MAIN BANK AND TRUST, San Antonio, Texas, without
exchange or collection charges to the owner or holder, and the
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ii said City of Schertz, Texas, is hereby held and firmly bound to
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i' works and Sanitary Sewer System, and in the event of the later
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I, gas system, the revenues of all of such combined Waterworks, Sani-
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I! to the prompt payment of principal of and interest on this bond
II at maturity and to pay said principal and interest as they mature.
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FOR VALUE RECEIVED, the CITY OF SCHERTZ, a municipal corpora-
tion of the State of Texas, hereby acknowledges itself indebted to
and promises to pay to bearer, as hereinafter stated, without
right of prior redemption, on the FIRST DAY OF SEPTEMBER, 19____,
the sum of
FIVE THOUSAND DOLLARS
($5,000), in lawful money of the United States of America, with
interest thereon from the date hereof to maturity at the rate of
PER CENTUM ( %) per annum, payable on September 1,
1972, and semiannually thereafter on March 1 and September 1 in
each year, and interest falling due on or prior to maturity hereof
is payable only upon presentation and surrender of the interest
coupons hereto attached as they severally become due.
THIS BOND is one of a series of bonds of like tenor and ef-
fect, except as to number, interest rate and maturity, aggregating
in amount THIRTY-FIVE THOUSAND DOLLARS ($35,000), numbered con-
secutively from One (1) through Seven (7), each in denomination
of Five Thousand Dollars ($5,000), issued for the purpose of
improving and extending the City's Waterworks System, in accor-
dance with the Constitution and laws of the State of Texas,
particularly Article 1111 et seq., V.A.T.C.S., and by authority
expressly conferred at an election held for that purpose within
said City, and pursuant to an ordinance passed by the City
Council of the City of Schertz, Texas, and duly recorded in
the Minutes of said City Council.
THE DATE of this bond in conformity with the ordinance above
mentioned is MARCH 1, 1972.
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THIS BOND and the series of which it is a part constitute
special obligations of the City of Schertz, Texas, and, together
with the outstanding and unpaid previously issued bonds (as de-
fined in the ordinance authorizing the series of bonds of which
this is one) are payable solely from and equally secured by a
first lien on and pledge of the net revenues of the City's com-
bined Waterworks and Sanitary Sewer System; provided, however,
that in the event of the later acquisition of an electric light
and power system and/or natural gas system and the issuance of
revenue bonds in connection therewith, then the bonds and previ-
ously issued bonds together with any such revenue bonds shall be
payable from and equally secured by a first lien on and pledge of
the net revenues of the City's combined Waterworks, Sanitary Sewer,
Electric Light and Power and/or Natural Gas Systems.
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THE CITY expressly reserves the right to issue not only the
bonds for electric light and power and/or natural gas system pur-
poses, but also further and additional bond obligations in all
~Dings on a parity with the outstanding previously issued bonds
and the bonds of this series and payable solely from and equally
secured by a first lien on and pledge of the net revenues of the
City's combined Waterworks, Sanitary Sewer, Electric Light and
Power and/or Natural Gas Systems; provided, however, that any
and all of such bonds may be issued only in accordance with and
subject to the covenants, limitations, conditions and restric-
tions relating thereto which are set out and contained in the
ordinance authorizing this series of bonds and to which said
ordinance reference is hereby made for more complete and full
particulars.
THE HOLDER hereof shall never have the right to demand pay-
ment of this obligation out of any funds raised or to be raised
by taxation.
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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 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; that this series of reve-
nue bonds does not exceed any constitutional or statutory limita-
tion; and that provision has been made for the payment of the
principal of and interest on this bond and the series of which
it is a part by irrevocably pledging the net revenues of the com-
bined Waterworks and Sanitary Sewer System and, in the event of
the later acquisition of an electric light and power system and/or
natural gas system, the net revenues of the combined Waterworks,
Sanitary Sewer, Electric Light and Power and/or Natural Gas
Systems of said City.
IN TESTIMONY WHEREOF, the City Council of the City of
Schertz, Texas, in accordance with the provisions of Article
7l7j-l, V.A.T.C.S., has caused the seal of said City to be im-
pressed or a facsimile thereof to be printed hereon, and this
bond and its appurtenant coupons to be executed with the im-
printed facsimile signatures of the Mayor and City Secretary
of said City, as of the FIRST DAY OF MARCH, 1972.
eX)(JNTERSIGNED:
Mayor, City of Schertz, Texas
City Secretary, City of Schertz, Texas
SECTION 7: Coupon Form. The form of said interest coupons
shall be substantially as follows':
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ON THE FIRST DAY OF
19_,
$
the CITY OF S~HERTZ, a municipal corporation of the State of Texas,
:: hereby promises to pay to bearer, out of funds specified in the
i! bond to which this coupon is attached (without right to demand
Ii payment out of any funds raised or to be raised by taxation), and
1'[,' in lawful money of the United States of America, without exchange
liar collection charges to the owner or holder, at the MAIN BANTZ
il AND TRUST, San Antonio, Texas, the sum of
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"CITY OF S~HERTZ, TEXAS, UTILITY SYSTEM REVENUE BOt>!"D,
1972," dated March 1, 1972. Bond No.
City Secretary
Mayor
SECTION 8: Form of Comptroller's Certificate. Substantially
i; the following shall be printed on the back of each bond:
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i; OFFICE OF COMPTROLLER
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!i I HEREBY CERTIFY that there is on file and of record in my
..1"1' office a certificate of the Attorney General of the State of Texas
to the effect that this bond has been examined by him as required
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11 with the Constitution and laws of the State of Texas, and that it
Ii is a valid and binding special obligation of the City of Schertz,
:1 Texas, payable from the revenues pledged to its payment by and
,I in the ordinance authorizing same, and said bond has this day
11 been regis tered by me.
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STATE OF TEXAS
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REGISTER NO.
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas,
Comptroller of Public Accounts of the
State of Texas
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Ii SECTION 9: Definitions. For all purposes of this ordinance
i' and in particular for clarity with respect to the issuance of the
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Ii nues therefor, the following definitions are provided:
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(a) The term "System" means the City's combined
Waterworks and Sanitary Sewer System and, in the event
of the later construction or purchase of an electric
light and power system'and/or a natural gas system, then
the combined Waterworks, Sanitary Sewer, Electric Light
and Power and/or Natural Gas Systems, including all
present and future extensions, additions, replacements
and improvements thereto.
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(b) The term "net revenues" means the gross reve-
nues of the System less the expense of operation and main-
tenance, including all salaries, labor, materials, repairs
and extensions necessary to render efficient service, pro-
vided, however, that only such repairs and extensions as in
the judgment of the City Council, reasonably and fairly
exercised, are necessary to keep the System in operation and
render adequate service to the City and the inhabitants
thereof, or such as might be necessary to meet some physical
accident or condition which would otherwise impair the
security of any bonds payable from and secured by a lien
on the net revenues of the System shall be deducted in
determining "net revenues".
(c) The term "bonds" means the $35,000 revenue bonds
authorized by this ordinance.
(d) The term "previously issued bonds" shall mean
the outstanding and unpaid bonds designated "CITY OF
SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES
1968," dated March 1, 1968, in the original principal
amount of $579,000.
(e) The term "additional bonds" means the addi-
tional parity revenue bonds which the City reserves the
right to issue under Section 19 hereof.
(f) The term "bonds similarly secured" means the
bonds, previously issued bonds and additional bonds
which are payable from a first lien on and pledge of
the net revenues of the System.
(g) The term "fiscal ye'ar" means the twelve-month
period ending September 30th of each year.
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II SECTION 10: Pledge. All of the net revenues of the com-
!I bined System, with the exception of those in excess of the amounts
, required to establish and maintain the Funds as hereinafter pro-
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'I similarly secured if issued under the conditions and in the manner
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ii hereby ordained that the bonds similarly secured, and the interest
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thereon shall constitute a first lien upon said net revenues.
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SECTION 11: Rates and Charges. The City covenants, reaffirms
and agrees with the holders of the bonds similarly secured:
(a) That it will at all times charge and collect
for services rendered by the System rates sufficient to
pay all operating, maintenance, depreciation, replacement
and betterment expenses, and other costs deductible in
determining net revenues and to pay the interest on and
principal of the bonds similarly secured and to establish
and maintain the Funds as hereinafter provided;
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(b) If additional bonds are issued, or if the
System should become legally liable for any other in-
debtedness, the City will fix and maintain rates and
collect charges for the services of the System suffi-
cient to discharge such indebtedness.
SECTION 12: Fund Designations. All revenues derived from
the operation of the System shall be kept separate from other funds
of the City. To that end, the following special Funds heretofore
created are hereby reaffirmed:
(a) City of Schertz Utility System Fund, herein-
after called "System Fund". This Fund shall be kept
in the City's depository bank.
(b) City of Schertz Utility System Revenue Bond
Interest and Sinking Fund, hereinafter called "Interest
and Sinking Fund". This Fund shall be deposited with
the MAIN BANK AND TRUST, San Antonio, Texas, as Trustee
of the pledged revenues, and shall be used to pay prin-
cipal of and interest on the bonds similarly secured
when and as the same shall become due and payable.
(c) City of Schertz Utility System Revenue Bond
Reserve Fund, hereinafter called "Reserve Fund". This
Fund shall be deposited with the MAIN BANK AND TRUST,
San Antonio, Texas, as Trustee, and shall be used to
pay principal of or interest on the bonds similarly
secured falling due at any time when there is not
sufficient money available in the Interest and Sinking
Fund.
SECTION 13: System Fund. All revenues of every nature re-
ceived through the operation of the System shall be deposited
from day to day as collected into the System Fund, and the reason-
able and proper expenses of operating and maintaining the System
as set forth in Section 9(b) hereof shall be paid therefrom upon
approval of the City Council. All revenues of the System not
actually required to pay expenses and costs incurred as permitted
by this Section shall be appropriated and used for the purposes
and in the order of precedence hereinafter set forth.
SECTION 14: Interest and Sinking Fund. In addition to the
deposits required to be made into the Interest and Sinking Fund
by the ordinance authorizing issuance of the previously issued
I' bonds for the payment of the principal and interest requirements
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II of such bonds, beginning on or before the 15th day of March, 1972,
I: and on or before the 15th day of each month thereafter, until the
II bonds are paid and retired, the City shall deposit in said Fund
ii an amount of money not less than one-sixth (1/6) of the next
Ii semiannual installment of interest to become due on the bonds.
Ii In addition, on or before the 15th day of March, 1972, and on
,
or before the 15th day of each month thereafter, through August
15, 1972, the City shall deposit in the Interest and Sinking Fund
Ii an amount of money not less than one-sixth (1/6) of the install-
Ii ment of principal to become due on the bonds on September 1, 1972;
'i thereafter, on or before September 15, 1972 and on or before the
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15th day of each month thereafter, until the bonds are paid and
retired, the City shall deposit in said Fund an amount of money
not less than one-twelfth (1/12) of the next annual principal
maturity to become due on the bonds. The amount received from
the purchaser of the bonds hereinafter sold as interest accrued
thereon to the date of delivery and the proceeds of the bonds
found not to be required for the completion of the Waterworks
improvements and extensions shall also be placed in the Interest
and Sinking Fund, which shall reduce by such amount the sums
Ii which would otherwise be required to be placed in the Interest
and Sinking Fund from the revenues of the System.
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:1 SECTION 15: Reserve Fund. It is the City's purpose and
l! intent and the City hereby covenants and reaffirms that it will
Ii provide for the accumulation of and, when accumulated, will there-
Ii after continuously maintain in the Reserve Fund an amount not
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ii principal and interest requirements of all bonds secured by a
first lien on and pledge of the net revenues of the System.
.1' When fully accumulated in accordance herewith, no further pay-
i ments need be made into the Reserve Fund, except that whenever
i said Fund is reduced below such amount, monthly deposits shall
I be resumed as hereinafter specified and continued until such
" time as the Fund has been fully restored. Money in the Reserve
jl Fund may be, at the option of the City, invested in direct obli-
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ii gations of the United States of America, having maturities not
:! in excess of ten years from the date of making such investment.
:1 Any, obligations in which money is so invested shall be kept in
i! escrow in the Trustee Bank, and shall be promptly sold and the
!; proceeds of sale applied to the making of payments required to
ii be made from the Reserve Fund whenever such payments are neces-
[: sary to be made under the provisions of Section l2(c). The
i deposits into this Fund shall be subordinate to those required
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There is now on hand in the Reserve Fund the sum of $75,116
(which amount is in excess of the amount required to be accumu-
Ii lated and maintained in said Fund for the bonds and previously
ji issued bonds). In the event said Fund is reduced below such
Ii amount, monthly deposits shall be resumed and made, in accordance
il with the ordinance authorizing the previously issued bonds, on the
11 15th day of each month at the rate of not less than $1,000 per
(j month.
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i SECTION 16: Deficiencies in Funds. If in any month the
ii City shall, for any reason, fail to pay into the Interest and
[i Sinking Fund and Reserve Fund the full amounts above stipulated,
I: amounts equivalent to such deficiencies shall be set apart and
I, paid into said Funds from the first available and unallocated
I revenues of the following month or months and such payments shall
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! wise paid into said Funds during such month or months.
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SECTION 17: Excess Revenues. Any revenues in excess of
ji those required to fully establish and maintain the Funds herein
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'll cured, or may be transferred to the general fund of the City
,I and used for general or special purposes.
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SECTION 18: Security of Funds. All special Funds heretofore
created and herein reaffirmed for which this ordinance makes pro-
vision (except any portions thereof as may be at any time properly
invested) shall be secured in the manner and to the fullest extent
required by the laws of Texas for the security of public funds,
and such Funds shall be used only for the purposes permitted by
this ordinance and the ordinance authorizing the previously issued
bond s .
SECTION 19: Issuance of Additional Parity Bonds. In addi-
tion to the right to issue bonds of inferior lien as authorized
by the laws of this State, the City reserves the right hereafter
to issue additional bonds. The additional bonds when issued shall
be payable from and secured by a first lien on and pledge of the
net revenues of the System in the same manner and to the same
extent as are the bonds herein authorized and the previously
issued bonds, and the bonds similarly secured shall in all re-
spects be of equal dignity. The additional bonds may be issued
in one or more installments, provided, however, that none shall
be issued unless and until the following conditions have been met:
(a) The City is not then in default as to any
covenant, condition or obligation prescribed by this
ordinance or the ordinance authorizing the previously
issued bonds.
(b) That the laws of 'the State of Texas in force
at such time provide permission for the issuance of such
bonds.
(c) That each of the Funds reaffirmed by this
ordinance contains the amount of money then required
to be on deposit therein.
(d) The net revenues of the System for the com-
pleted twelve (12) months immediately preceding the adop-
tion of the ordinance authorizing the issuance of the
additional bonds are equal to at least one and one-half
(1-1/2) times the average annual requirement for the
payment of principal and interest on the then outstanding
bonds and on the additional bonds, as such net revenues
are shown by a report by a certified public accountant
or a licensed public accountant. The term "net revenues"
as used in this Section 19 shall mean the gross revenues
after deduction of expenses of operation and maintenance,
but not deducting expenditures which, under standard
accounting practice, should be charged to capital expen-
ditures; PROVIDED, HOWEVER, that the requirement of this
subparagraph (d) shall not apply or be a condition to
the right of the City to issue bonds for the initial
acquisition (by purchase or construction) of an electric
light and power system and/or a natural gas system in and
for said City, but such bonds may be issued at any time
provided the City has secured a certificate from an engi-
neer registered by the State Board of Registration for
Professional Engineers of the State of Texas, showing that
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the average annual net income and revenues of the System
(after providing for adequate maintenance and operation
expenses) as estimated by him throughout the maturities of
all of such outstanding bonds, will be at least one and
one-half (1-1/2) times' the average annual requirements for
the payment of principal and interest on all bonds to be
payable from and secured by a first lien on the net reve-
nues of the System after giving effect to the issuance of
the proposed additional bonds.
(e) The additional bonds are made to mature on
September 1 in each of the years in which they are sched-
uled to mature.
(f)
additional bonds provides for the accumulation in the
Interest and Sinking ,Fund of amounts sufficient to pay
the principal of and interest on such additional bonds
as same mature.
The ordinance authorizing issuance of the
(g)
additional bonds provides that the amount to be accumu-
lated and maintained in the Reserve Fund shall be not
less than one and one-half (1-1/2) times the average
annual requirement for the payment of principal of and
interest on all bonds to be secured by a first lien on
and pledge of the net revenues of the System after giving
effect to the issuance of the proposed additional bonds,
and provides that any additional Reserve Fund amount
which may thus be required shall be accumulated in
equal monthly installments within sixty (60) calendar
months from the date of adoption of the ordinance autho-
rizing such proposed additional bonds.
The ordinance authorizing issuance of the
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'I!" SECTION 20: Maintenance and Operation - Insurance. The City
shall maintain the System in good condition and operate the same
II in an efficient manner and at reasonable cost. So long as any
Ii of the bonds similarly secured are outstanding, the City agrees
i' to maintain insurance for the benefit of the holder or holders of
Ii the bonds on the System of a kind and in an amount which usually
Ii would be carried by private companies engaged in a similar type
II of business. Nothing in this ordinance shall be construed as
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II sources other than the operation of the System but nothing herein
i! shall be construed as preventing the City from doing so.
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SECTION 21: Records - Accounts - Accounting Reports. The
City hereby covenants, reaffirms and agrees that so long as any
of the bonds similarly secured or any interest thereon remain
outstanding and unpaid, it will keep and maintain a proper and
complete system of records and accounts pertaining to the opera-
tion of the 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 by Article
1113, V.A.T.C.S., and that the holder or holders of any of the
bonds or any duly authorized agent or agents of such holders
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shall have the right at all reasonable times to inspect all such
records, aC90unts and data relating thereto, and to inspect the
System and all properties comprising same. The City further
agrees that within sixty (60) days 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
or Licensed Public Accountants. Each such audit, in addition to
whatever other matters may be thought proper by the Accountant,
shall particularly include the following:
(a) A detailed statement of the income and
expenditures of the 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 require-
ments of this ordinance, and his recommendations for
any changes or improvements in the operation, records
and accounts of the System.
(d) A list of the insurance policies in force at
the end of the fiscal year on the 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 Interest and
Sinking Fund throughout the fiscal year, a list of the
securities, if any, in which the Reserve Fund has been
invested, and a statement of the manner in which money
in the System Fund has been secured in such fiscal year.
(f) The number of properties connected with the
System.
Expenses incurred in making the audits above referred to are
to be regarded as maintenance and operating expenses and paid as
such. Copies of the aforesaid annual audit shall be immediately
furnished to the Executive Director of the Municipal Advisory
Council of ,Texas at his office in Austin, Texas, and to the
original holders of the bonds and any subsequent holder at his
request. At the close of the first six months' period of each
fiscal year, the City Secretary is hereby directed to furnish a
copy of an operating and income statement in reasonable detail
covering such period to any bondholder upon his request therefor
received not more than thirty (30) days after the close of said
six months' period. Any bondholder shall have the right to dis-
cuss with the Accountant making the annual audit the contents
thereof and to ask for such additional information as he may rea-
sonably require.
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SECTION 22: Remedies in Event of Default. In addition to
all the rights and remedies provided by the laws of the State of
Texas, the City covenants, reaffirms and agrees particularly that
in the event the City (a) defaults in payments to be made to the
Interest and Sinking Fund or Reserve Fund as required by this
ordinance, or (b) 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 available:
(1) The holder or holders of any of the bonds
shall be entitled to a writ of mandamus issued by a
court of prop~r jurisdiction compelling and requiring
the City Council and other officers of the City to ob-
serve and perform any covenant, condition or obligation
prescribed in the bond ordinance.
(2) No delay or omission 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 existing remedies and the specification of such reme-
dies shall not be deemed to be exclusive.
SECTION 23: Special Covenants. The City hereby further
covenants, reaffirms and agrees as follows:
(a) That it has the lawful power to pledge the
revenues supporting this issue of bonds and has law-
fully exercised said power under the Constitution and
laws of the State of Texas, including said power exis-
ting under Articles 1111 through 1118, V.A.T.C.S.;
that the bonds similarly secured shall be ratably
secured under said pledge of income in such manner
that one bond shall have no preference over any other
bond of said issues.
(b) That other than for the pledge made for the
bonds herein authorized and the previously issued bonds,
the rents, revenues and income of the System have not
in any manner been pledged to the payment of any debt
or obli~ation of the City or of the System.
(c) That, so long as any of the bonds similarly
secured or any interest thereon remain outstanding, the
City will not sell or encumber the System, or any sub-
stantial part thereof, and that, with the exception of
the additional bonds expressly permitted by this ordinance
to be issued, it will not encumber the revenues thereof
unless such encumbrance is made junior and subordinate
to all of the provisions of this ordinance.
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(d) That no free service of the System shall
be allowed, and should the City or any of its agencies
or instrumentalities make use of the services and facili-
ties of the System, payment of the reasonable value
thereof shall be made by the City out of funds from
sources other than the revenues and income of the
System.
(e) To the extent that it legally may, the City
further covenants and agrees that, so long as any of
the bonds similarly secured or any interest thereon are
outstanding, no franchise shall be granted for the installa-
tion or operation of any competing waterworks or sanitary
sewer system (or electric light and power and/or natural
gas system in the event of the later acquisition of
either or both of such systems), that the City will
prohibit the operation of any waterworks or sanitary
sewer system other than those owned by the City, and
the operation of any such system by anyone other than
the City is hereby prohibited.
SECTION 24: Bonds are Special Obligations. The bonds are
special obligations of the City payable from the pledged revenues,
and the holders thereof shall never have the right to demand pay-
ment thereof out of funds raised or to be raised by taxation.
SECTION 25: Bonds as Negotiable Instruments. Each of the
bonds herein authorized shall be deemed and construed to be a
"Security", and as such a negotiable instrument, within the
meaning of Article 8 of the Uniform Commercial Code.
SECTION 26: Mayor to Have Charge of Records and Bonds. The
Mayor of the City of Schertz shall be and he is hereby authorized
to take and have charge of all necessary orders and records pend-
ing investigation by the Attorney General of the State of Texas,
and shall take and have charge and control of the bonds herein
authorized, pending their approval by the Attorney General and
their registration by the Comptroller of Public Accounts.
SECTION 27: Confirmation of Sale. That the sale of the
bonds herein authorized to
Texas Securit~es Corporation; San Antonio, Texas
at the price'of par and accrued interest to date of delivery,
plus a premium of $ _0_ is hereby confirmed. Delivery of
the bonds shall be made to said purchasers as soon as may be
after the adoption of this ordinance, upon payment therefor in
accordance with the terms of sale.
SECTION 28: Emergency. The fact that it is to the best
interest of the City to provide funds for the City's Waterworks
System improvements and extensions at the earliest possible ~ate
constitutes and creates an emergency and an urgent public neces-
sity requiring that any rule providing for ordinances to be read
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more than one time or at more than one meeting of the City Council
b2 suspended, and requiring that this ordinance be passed and
take effect as an emergency measure, and such rules and provi-
sions are accordingly suspended, and this ordinance is passed as
an emergency measure and shall take and have effect and be in
full force from and after its passage.
PASSED AND APPROVED, this the
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2 - day of March, 1972.
~~Q~jo/~
Mayor, City of Schertz, Texas
ATTEST:
(:Jp, ~ /'
Jlt'-W,,:;t c:' ~<-.(.k//'. ./
City Secretary, City of Schertz,
Texas
(City Seal)
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