1990B6- LEVY OF AN AD VALOREM TAX
ORDINANCE NO. 90-B-6
AN ORDINANCE AUTHORIZING THE ISSUANCE OF "CITY
OF SCHERTZ, TEXAS COMBINATION TAX AND LIMITED
PLEDGE REVENUE CLRTIFICATES OF OBLIGATION,
SERIES 1990"; PROVIDING FOR THE PAYMENT OF
SAID CERTIFICATES BY THE LEVY OF AN AD VALOREM
TAX UPON ALL TAXABLE PROPERTY WITHIN THE CITY
AND FURTHER SECURING SAID CERTIFICATES BY A
LIEN ON AND PLEDGE OF THE PLEDGED REVENUES OF
THE SYSTEM; PROVIDING THE TERMS AND CONDITIONS
OF SAID CERTIFICATES AND RESOLVING OTHER
MATTERS INCIDENT AND RELATING TO THE ISSUANCE,
PAYMENT, SECURITY, SALE, AND DELIVERY OF SAID
CERTIFICATES, INCLUDING THE APPROVAL AND
DISTRIBUTION OF AN OFFICIAL STATEMENT;
AUTHORIZING THE EXECUTION OF A PAYING
AGENT/REGISTRAR AGREEMENT; AND DECLARING AN
EMERGENCY
WHEREAS, the City council of the City of Schertz,
Texas (the City) has caused notice to be given of its
intention to issue certificates of obligation in the maximum
principal amount of $850,000 for the purpose of providing funds
for the payment of contractual obligations of the City to be
incurred for making permanent public improvements and for other
public purposes, inc luding (1) purchase of rights-of-way for
street improvements, (2) purchase of land for an animal control
facility, (3) construction of public works, including
construction of a building or buildings and acquisition of
equipment therefor for an animal control facility, (4) purchase
of land and an existing building for a public works service
center facility and renovation and improvement thereof and
acquisition of equipment therefor, or purchase of land and
construction of a building and acquisition of equipment for a
public works service center facility, (5) purchase of police
vehicles and communications equipment, and (6) payment for
professional services. This notice has been duly published in
a newspaper hereby found and determined to be of general
circulation in the City, once a week for two (2) consecutive
weeks, the date of the first publication of such notice being
not less than fifteen (15) days prior to the tentative date
stated therein for the passage of the ordinance authorizing the
issuance of such certificates of obligation; and
WHEREAS, no petition protesting the issuance of the
certificates of obligation described in this notice, signed by
at least 5% of the qualified electors of the City, has been
presented to or filed
tentatively set in
ordinance; and
with the City Secretary prior to the date
such notice for the passage of this
WHEREAS, the City Council hereby finds and determines
that all of the certificates of obligation described in such
notice should be issued and sold at this time; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS THAT:
SECTION 1: Authorization DesiGnatiQ.n Principal
6mQJJJ)t - Purpose. The certificates of obligation of the City
shall be and are hereby authorized to be issued in the
aggregate principal amount of EIGHT HUNDRED FIFTY THOUSAND
DOLLARS ($850,000), to be designated and bear the title of
"CITY OF SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1990" (the
Certificates), for the purpose of paying contractual
obligations to be incurred for making permanent public
improvements and for other public purposes, including (1)
purchase of rights-of-way for street improvements, (2) purchase
of land for an animal control facility, (3) construction of
public works, including construction of a building or buildings
and acquisition of equipment therefor for an animal control
facility, (4) purchase of land and an existing building for a
public works service center facility and renovation and
improvement thereof and acquisition of equipment therefor, or
purchase of land and construction of a building and acquisition
of equipment for a public works service center facility, (5)
purchase of police vehicles and communications equipment, and
(6) payment for professional services pursuant to the authority
conferred by and in conformity with the laws of the State of
Texas, particularly Texas Revised Civil Statutes Annotated
Article 1175, as amended, Texas Revised Civil Statutes
Annotated Articles llll through 1l18, inclusive, as amended,
the Certificate of Obligation Act of 1971, as amended, Local
Government Code Section 271.04l through 271.063, and the Home
Rule Charter of the City.
SECTION 2: Fully ReGistered ObliGations - Authorized
Denominations _ Stated Maturities - Interest Rates - Date. The
Certificates are issuable in fully registered form only, shall
be dated February 1, 1990 (the Certificate Date) and shall be
in denominations of $5,000 or any integral multiple thereof;
and the Certificates shall become due and payable on February 1
in each of the years and in principal amounts (the Stated
Maturities) and bear interest on the unpaid principal amounts
from the Certificate Date, or from the most recent Interest
Payment Date (hereinafter defined) to which interest has been
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paid or duly provided for, to the earlier of redemption or
Stated Maturity, at the per annum rates, while outstanding, In
accordance with the following schedule:
Year of
Stated Maturity
Principal
Amount ($)
Interest
Rate (%)
1992
1993
1994
1995
1996
1997
1998
1999
2000
200l
2002
2003
2004
2005
35,000
35,000
40,000
45,000
45,000
50,000
55,000
60,000
65,000
65,000
85,000
90,000
90,000
90,000
9.00
9.00
9.00
9.00
. 9.00
9.00
7.00
7.10
7.25
7.25
7.25
7.25
7.25
7.25
SECTION 3: Payment of Certificates Payina
Aaent/Reaistrar. The principal of, premium, if any, and the
interest on the Certificates, due and payable by reason of
Stated Maturity, redemption or otherwise, shall be payable in
any coin or currency of the united States of America which at
the time of payment is legal tender for the payment of public
and private debts, and such payment of principal of and
interest on the Certificates shall be without exchange or
collection charges to the Holder (as hereinafter defined) of
the Certificates.
The Certificates shall bear interest at the per annum
rates shown above in Section 2, computed on the basis of a
360-day year of twelve 3D-day months, and interest thereon
shall be payable semi-annually on February 1 and August 1 of
each year (the Interest Payment Date) commencing February l,
1991, while the Certificates are Outstanding.
The selection and appointment of First City,
Texas--Austin, N.A., Austin, Texas, to serve as the initial
Paying Agent/Registrar for the Certificates is hereby approved
and confirmed, and the City agrees and covenants to cause to be
kept and maintained at the principal corporate trust office of
the Paying Agent/Registrar books and records (the Security
Register) for the registration, payment, and transfer of the
Certificates, all as provided herein, in accordance with the
terms and provisions of a Paying Agent/Registrar Agreement,
attached, in substantially final form, as Exhibit A hereto, and
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such reasonable rules and regulations as the Paying
Agent/Registrar and City may prescribe. The City covenants to
maintain and provide a Paying Agent/Registrar at all times
while the Certificates are Outstanding, and any successor
paying Agent/Registrar shall be (i) a national or state banking
institution or (ii) an association or a "orporation organized
and doing business under the laws of the United States of
America or of any state, authorized under such laws to exercise
trust powers. Such paying Agent/Registrar shall be subject to
supervision or examination by federal or state authority and
authorized by law to serve as a Paying Agent/Registrar.
The City reserves the right to appoint a successor
paying Agent/Registrar upon providing the previous paying
Agent/Registrar with a certified copy of a resolution or
ordinance terminating such agency. Additionally, the City
agrees to promptly cause a written notice of this substitution
to be sent to each Holder of the Certificates by United States
Mail, first-class postage prepaid, which notice shall also give
the address of the new paying Agent/Registrar.
Both principal of, premium, if any, and interest on
the Certificates, due and payable by reason of Stated Maturity,
redemption or otherwise, shall be payable only to the
registered owner of the Certificates appearing on the Security
Register (the Holder or Holders) maintained on behalf of
the City by the paying Agent/Registrar as hereinafter provided
(i) on the Record Date (hereinafter defined) for purposes of
payment of interest thereon, and (ii) on the date of surrender
of the Certificates for purposes of receiving payment of
principal thereof upon redemption of the Certificates or at the
Certificates' Stated Maturity. The City and the paying
Agent/Registrar, and any agent of either, shall treat the
Holder as the owner of a Certificate for purposes of receiving
payment and all other purposes whatsoever, and neither the City
nor the Paying Agent/Registrar, or any agent of either, shall
be affected by notice to the contrary.
Principal of and premium, if any, on the Certificates
shall be payable only upon presentation and surrender of the
Certificates to the Paying Agent/Registrar at its principal
corporate trust office. Interest on the Certificates shall be
paid to the Holder whose name appears in the Security Register
at the close of business on the fifteenth day of the month next
preceding an Interest Payment Date for the Certificates (the
Record Date) and shall be paid (i) by check sent by United
States Mail, first-class postage prepaid, by the Paying
Agent/Registrar, to the address of the Holder appearing in the
Security Register or (ii) by such other method, acceptable to
the Paying Agent/Registrar, requested in writing by the Holder
at the Holder's risk and expense.
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If the date for the payment of the principal of,
premium, if any, or interest on the Certificates shall be a
Saturday, Sunday, a legal holiday, or a day on which banking
institutions in the city where the Paying Agent/Registrar is
located are authorized by law or executive order to close, then
the date for such payment shall be the next succeeding day
which is not such a day. The payment on such date shall have
the same force and effect as if made on the original date any
such payment on the Certificates was due.
In the event of a non-payment of interest on a
scheduled payment date, and for thirty (30) days thereafter, a
new record date for such interest payment (a Special Record
Date) will be established by the Paying Agent/Registrar, if
and when funds for the payment of such interest have been
received from the City. Notice of the Special Record Date and
of the scheduled payment date of the past due interest (the
Special Payment Date - which shall be fifteen (15) days after
the Special Record Date) shall be sent at least five (5)
business days prior to the Special Record Date by United States
Mail, first-class postage prepaid, to the address of each
Holder appearing on the Security Register at the close of
business on the last business day next preceding the date of
mailing of such notice.
SECTION 4:
Redemption.
A. QQ.tional Redemption. The Certificates having
Stated Maturities on and after February l, 200l shall be
subject to redemption prior to Stated Maturity, at the option
of the City, on February l, 2000, or on any Interest Payment
Date thereafter, as a whole or in part, in principal amounts of
$5,000 or any integral multiple thereof (and if within a Stated
Maturity at random and by lot by the Paying Agent/Registrar) ,at
the redemption price of par plus accrued interest to the date
of redemption.
B. Exercise of Redemption Option. At least
forty-five (45) days prior to a date set for the redemption of
Certificates (unless a shorter notification period shall be
satisfactory to the Paying Agent/Registrar), the City shall
notify the paying Agent/Registrar of its decision to exercise
the right to redeem Certificates, the principal amount of each
Stated Maturity to be redeemed, and the date set for the
redemption thereof. The decision of the City to exercise the
right to redeem Certificates shall be entered in the minutes of
the governing body of the City.
C. Selection of certificates for
less than all Outstanding Certificates of
Maturi ty are to be redeemed on a redemption
Redemption. If
the same Stated
date, the Paying
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Agent/Registrar shall select at random and by lot
Certificates to be redeemed, provided that if less than
entire principal amount of a Certificate is to be redeemed,
Paying Agent/Registrar shall treat such Certificate
subject to redemption as representing the number
Certificates Outstanding which is obtained by dividing
principal amount of such Certificate by $5,000.
the
the
the
then
of
the
D. Notice of RedempU.Q.!J. Not less than thirty (30)
days prior to a redemption date for the Certificates, a notice
of redemption shall be sent by United States Mail, first-class
postage prepaid, in the name of the City and at the City's
expense, by the Paying Agent/Registrar to each Holder of a
Certificate to be redeemed, in whole or in part, at the address
of the Holder appearing on the Security Register at the close
of business on the business day next preceding the date of
mailing such notice, and any notice of redemption so mailed
shall be conclusively presumed to have been duly given
irrespective of whether received by the Holder.
E. Transfer/Exchanae of Certificates. Neither the
City nor the Paying Agent/Registrar shall be required (1) to
transfer or exchange any Certificate during a period beginning
forty-five (45) days prior to the date fixed for redemption of
the Certificates or, (2) to transfer or exchange any
Certificate selected for redemption, provided, however, such
limitation of transfer shall not be applicable to an exchange
by the Holder of the unredeemed balance of a Certificate which
is subject to redemption in part.
All notices of redemption shall (i) specify the date
of redemption for the Certificates, (ii) identify the
Certificates to be redeemed and, in the case of a portion of
the principal amount to be redeemed, the principal amount
thereof to be redeemed, (iii) state the redemption price,
(iv) state that the Certificates, or the portion of the
principal amount thereof to be redeemed, shall become due and
payable on the redemption date specified, and the interest
thereon, or on the portion of the principal amount thereof to
be redeemed, shall cease to accrue from and after the
redemption date, and (v) specify that payment of the redemption
price for the Certificates, or the principal amount thereof to
be redeemed, shall be made at the principal corporate trust
office of the Paying Agent/Registrar only upon presentation and
surrender thereof by the Holder. If a Certificate is subject
by its terms to redemption and has been called for redemption
and notice of redemption thereof has been duly given or waived
as herein provided, such Certificate (or the principal amount
thereof to be redeemed) so called for redemption shall become
due and payable, and if money sufficient for the payment of
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such Certificates (or of the principal amount thereof to be
redeemed) at the then applicable redemption price is held for
the purpose of such payment by the paying Agent/Registrar, then
on the redemption date designated in such notice, interest on
said Certificates (or the principal amount thereof to be
redeemed) called for redemption shall cease to accrue, and such
Certificates shall not be deemed to be Outstanding in
accordance with the provisions of this Ordinance.
SECTION 5: Execution Reaistration. The
Certificates shall be executed on behalf of the City by its
Mayor under its seal reproduced )r impressed thereon and
attested by its City Secretary. The signature of either of
said officers on the Certificates may be manual or facsimile.
Certificates bearing the manual or facsimile signatures of
individuals who were, at the time of the Certificate Date, the
proper officers of the City shall bind the City,
notwithstanding that such individuals or either of them shall
cease to hold such offices prior to the delivery of the
Certificates to the initial purchaser(s), all as authorized and
provided in the Bond Procedures Act of 1981, Texas Revised
Civil Statutes Annotated Article 7l7k-6, as amended.
No Certificate shall be entitled to any right or
benefit under this Ordinance, or be valid or obligatory for any
purpose, unless there appears on such Certificate either a
certificate of registration substantially in the form provided
in Section 8C, executed by the Comptroller of Public Accounts
of the State of Texas or his duly authorized agent by manual
signature, or a certificate of registration substantially in
the form provided in Section 8D, executed by the Paying
Agent/Registrar by manual signature, and either such
certificate upon any Certificate shall be conclusive evidence,
and the only evidence, that such Certificate has been duly
certified or registered and delivered.
SECTION 6: Reaistration Transfer Exchanae of
~tificates Predecessor Certificates. The Paying
Agent/Registrar shall obtain, record, and maintain in the
Securi ty Register the name and address of every owner of the
Certificates or, if appropriate, the nominee thereof. Any
Certificate may, in accordance with its terms and the terms
hereof, be transferred or exchanged for Certificates of other
authorized denominations upon the Security Register by the
Holder, in person or by his duly authorized agent, upon
surrender of such Certificate to the Paying Agent/Registrar for
cancellation, accompanied by a written instrument of transfer
or request for exchange duly executed by the Holder or by his
duly authorized agent, in form satisfactory to the paying
Agent/Registrar.
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Upon surrender for transfer of any Certificate at the
principal corporate trust office of the Paying Agent/Registrar,
the City shall execute and the Paying Agent/Registrar shall
register and deliver, in the name of the designated transferee
or transferees, one or more new Certificates of authorized
denomination and having the same Stated Maturity and of a like
interest rate and aggregate principal amount as the Certificate
or Certificates surrendered for transfer.
At the option of the Holder, Certificates may be
exchanged for other Certificates of authorized denominations
and having the same Stated Maturity, bearing the same rate of
interest and of like aggregate principal amount as the
Certificates surrendered for exchange upon surrender of the
Certificates to be exchanged at the principal corporate trust
office of the Paying Agent/Registrar. Whenever any
Certificates are so surrendered for exchange, the City shall
execute, and the Paying Agent/Registrar shall register and
deliver, the Certificates to the Holder requesting the exchange.
All Certificates issued upon any transfer or exchange
of Certificates shall be delivered at the principal corporate
trust office of the paying Agent/Registrar, or be sent by
registered mail to the Holder at his request, risk, and expense,
and upon the delivery thereof, the same shall be the valid and
binding obligations of the City, evidencing the same obligation
to pay, and entitled to the same benefits under this Ordinance,
as the Certificates surrendered upon such transfer or exchange.
All transfers or exchanges of Certificates pursuant to
this Section shall be made without expense or service charge to
the Holder, except as otherwise herein provided, and except
that the Paying Agent/Registrar shall require payment by the
Holder requesting such transfer or exchange of any tax or other
governmental charges required to be paid with respect to such
transfer or exchange.
Certificates cancelled by reason of an exchange or
transfer pursuant to the provisions hereof are hereby defined
to be Predecessor Certificates, evidencing all or a portion, as
the case may be, of the same debt evidenced by the new
Certificate or Certificates registered and delivered in the
exchange or transfer therefor. Additionally, the term
Predecessor Certificates shall include any Certificate
registered and delivered pursuant to Section 25 in lieu of a
mutilated, lost, destroyed, or stolen Certificate which shall
be deemed to evidence the same obligation as the mutilated,
lost, destroyed, or stolen Certificate.
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SECTION 7: Initial Ceetificate(s). The Certificates
herein authorized shall be issued initially either (i) as a
single fully-registered Certificate in the total principal
amount of $850,000 with principal installments to become due
and payable as provided in Sect ion 2 and numbered T-l, 0 r (i i)
as one (1) fully-registered Certificate for each year of Stated
Maturity in the applicable principal amount and denomination
and to be numbered consecutively from T-l and upward (the
Initial Certificate(s)) and, in either case, the Initial
Certificate(s) shall be registered in the name of the initiel
purchaser(s) or the designee thereof. The Initial
Certificate(s) shall be the Certificates submitted to the
Office of the Attorney General of the State of Texas for
approval, certified and registered by the Office of the
Comptroller of Public Accounts of the State of Texas and
delivered to the initial purchaser(s). Any time after the
delivery of the Initial Certificate(s), the Paying
Agent/Registrar shall cancel the Initial Certificate(s)
delivered hereunder and exchange therefor definitive
Certificates of authorized denominations, Stated Maturities,
principal amounts and bearing applicable interest rates for
transfer and delivery to the Holders named at the addresses
identified therefor; all pursuant to and in accordance with
such written instructions from the initial purchaser(s), or the
designee thereof, and such other information and documentation
as the Paying Agent/Registrar may reasonably require.
SECTION 8:
FORMS.
A. Forms Generally. The Certificates, the
Registration Certificate of the Comptroller of Public Accounts
of the State of Texas, the Certificate of Registration, and the
form of Assignment to be printed on each of the Certificates
shall be substantially in the forms set forth in this Section
with such appropriate insertions, omissions, substitutions, and
other variations as are permitted or required by this Ordinance
and may have such letters, numbers, or other marks of
identification (including insurance legends in the event the
Certificates, or any Stated Maturities thereof, are insured and
identifying numbers and letters of the Committee on Uniform
Securities Identification Procedures of the American Bankers
Association) and such legends and endorsements (including any
reproduction of an opinion C" counsel) thereon as may,
consistent herewith, be establisned by the City or determined
by the officers executing the Certificates as evidenced by
their execution thereof. Any portion of the text of any
certificate may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Certificate.
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The definitive CSctificates shall be printed,
lithographed, or engraved, produced by any combination of these
methods, or produced in any other similar manner, all as
determined by the officers executing the Certificates as
evidenced by their execution thereof, but the Initial
Certificate(s) submitted to the Attorney General of Texas may
be typewritten or photocopied or otherwise reproduced.
B.
Form of Definitive Certificate.
REGISTERED
NO. ......
REGISTERED
$ ........
united States of America
State of Texas
Counties of Guadalupe, Comal, and Bexar
CITY OF SCHERTZ, TEXAS
COMBINATION TAX AND LIMITED PLEDGE REVENUE
CERTIFICATE OF OBLIGATION,
SERIES 1990
Interest Rate:
Certificate Date:
February l, 1990
Stated Maturity:
CUSIP NO:
REGISTERED OWNER:
PRINCIPAL AMOUNT:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. DOLLARS
The Ci ty of Schertz, Texas (the Ci t y) , a body
corporate and municipal corporation in the Counties of
Guadalupe, Comal, and Bexar, State of Texas, for value
recei ved, acknowledges itself indebted to and hereby promi ses
to pay to the Registered Owner specified above, or the
registered assigns thereof, on the Stated Maturity date
specified above, the Principal Amount specified above (or so
much thereof as shall not have been paid upon prior
redemption), and to pay interest on the unpaid Principal Amount
hereof from the Certificate Date specified above, or from the
most recent interest payment date to which interest has been
paid or duly provided for until such Principal Amount has
become due and payment thereof has been made or duly provided
for, at the per annum rate of interest specified above computed
on the basis of a 360-day year of twelve 3D-day months; such
interest being payable on February 1 and August I of each year
commencing February 1, 1991.
principal of this Certificate shall be payable to the
Registered Owner hereof (the Holder), upon presentation and
surrender, at the principal corporate trust office of the
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Paying Agent/Registrar executing the registration certificate
appearing hereon or a successor thereof. Interest shall be
payable to the Holder of this Certificate (or one or more
Predecessor Certificates, as defined in the Ordinance
hereinafter referenced) whose name appears on the Security
Register maintained by the Paying Agent/Registrar at the close
of business on the Record Date, which is the fifteenth day of
the month next preceding each interest payment date. All
payments of principal of and interest on this Certificate shall
be in any coin or currency of the United States of America
which at the time of payment is legal tender for the payment of
public and private debts. Interest shall be paid by the Paying
Agent/Registrar by check sent on the appropriate date of
payment by United States Mail, first-class postage prepaid, to
the Holder hereof at the address appearing in the Security
Register or by such other method, acceptable to the Paying
Agent/Registrar, requested by the Holder hereof at the Holder's
risk and expense.
This Certificate is one of the series specified in its
title issued in the aggregate principal amount of $850,000 (the
Certificates) pursuant to an Ordinance adopted by the
governing body of the City (the Ordinance), for the purpose
of paying contractual obligations of the City to be incurred
for making permanent public improvements and for other public
purposes, including (l) purchase of rights-of-way for street
improvements, (2) purchase of land for an animal control
facility, (3) construction of public works, including
construction of a building or buildings and acquisition of
equipment therefor for an animal control facility, (4) purchase
of land and an existing building for a public works service
center facility and renovation and improvement thereof and
acquisition of equipment therefor, or purchase of land and
construction of a building and acquisition of equipment for a
public works service center facility, (5) purchase of police
vehicles and communications equipment, and (6) payment for
professional services under and in strict conformity with the
laws of the State of Texas, particularly Texas Revised Civil
Statutes Annotated Article 1175, as amended, Texas Revised
Civil Statutes Annotated Articles llll through lll8, inclusive,
as amended, the Certificate of Obligation Act of 1971, as
amended, Local Government Code Section 27l.04l through 27l.063,
and the Home Rule Charter of the City.
The Certificates stated to mature on and after
February 1, 2001 may be redeemed prior to their Stated
Maturities, at the option of the City, on February l, 2000, or
on any Interest Payment Date thereafter, in whole or in part in
principal amounts of $5,000 or any integral multiple thereof
(and if within a Stated Maturity at random and by lot by the
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Paying Agent/Registrar) at the redemption price of par,
together with accrued interest to the date of redemption, and
upon thirty (30) days prior written notice being given by
United States Mail, first-class postage prepaid, to Holders of
the Certificates to be redeemed, and subject to the terms and
provisions relating thereto contained in the Ordinance. If
this Certificate is in a denomInation in excess of $5,000,
portions of the principal sum hereof in installments of $5,000
or any integral multiple thereof may be redeemed, and, if less
than all of the principal sum hereof is to be redeemed, there
shall be issued, without charge therefor, to the Holder hereof,
upon the surrender of this Certificate to the Paying
Agent/Registrar at its principal corporate trust office, a new
Certificate or Certificates of like Stated Maturity and
interest rate in any authorized denominations provided in the
Ordinance for the then unredeemed balance of the principal sum
hereof.
If this Certificate (or any portion of the principal
sum hereof) shall have been duly called for redemption and
notice of such redemption duly given, then upon such redemption
date this Certificate (or the portion of the principal sum
hereof to be redeemed) shall become due and payable, and, if
money for the payment of the redemption price and the interest
accrued on the principal amount to be redeemed to the date of
redemption is held for the purpose of such payment by the
Paying Agent/Registrar, interest shall cease to accrue and be
payable hereon from and after the redemption date on the
principal amount hereof to be redeemed. If this Certificate is
called for redemption, in whole or in part, the City or the
Paying Agent/Registrar shall not be required to issue,
transfer, or exchange this Certificate within forty-five (45)
days of the date fixed for redemption; provided, however, such
limitation of transfer shall not be applicable to an exchange
by the Holder of the unredeemed balance hereof in the event of
its redemption in part.
The Certificates of this series are payable from the
proceeds of an ad valorem tax levied upon all taxable property
within the City within the limitations prescribed by law and
are further payable from and secured by a lien on and pledge of
the Pledged Revenues (identified and defined in the Ordinance)
being a limited amount of the Net Revenues derived from the
operation of the City's combined waterworks and sewer system,
such lien on and pledge of Pledged Revenues being subordinate
and inferior to the lien on and pledge of such Net Revenues
securing payment of the currently outstanding Prior Lien
Obligations and Junior Lien Obligations (identified and defined
in the Ordinance). In the Ordinance, the City reserves and
retains the right to issue Additional Prior Lien Obligations,
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Additional Junior Lien obligations, Subordinate Lien
Obligations, and Additional Limited Pledge Obliq'ltions (all as
identified and defined in the Ordinance) while the
Certificates are Outstanding, without limitation as to
principal amount but sUbject to any terms, conditions or
restrictions as may be applicable thereto under law or
otherwise.
Reference is hereby made to the Ordinance, copies of
which are on file in the principal corporate trust office of
the Paying Agent/Registrar, and to all of the provisions of
which the Holder by his acceptance hereof hereby assents, for
definitions of terms; the description of and the nature and
extent of the tax levied and the revenues pledged for the
payment of the Certificates; the terms and conditions under
which the City may issue Additional Prior Lien Obligations,
Additional Junior Lien Obligations, Subordinate Lien
Obligations, and Additional Limited Pledge Obligations; the
terms and conditions relating to the transfer or exchange of
the Certificates; the conditions upon which the Ordinance may
be amended or supplemented with or without the consent of the
Holder; the righto. duties, and obligations of the City and the
paying Agent/Registrar; the terms and provisions upon which
this Certificate may be redeemed or discharged at or prior to
the Stated Maturity thereof, and deemed to be no longer
Outstanding thereunder; and for the other terms and provisions
specified in the Ordinance. Capitalized terms used herein have
the same meanings assigned in the Ordinance.
This Certificate, subject to certain limitations
contained in the Ordinance, may be transferred at the principal
corporate trust office of the paying Agent/Registrar, duly
endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Paying Agent/Registrar duly
executed by the Holder hereof, or his duly authorized agent,
and thereupon one or more new fully registered Certificates of
the same Stated Maturity, of authorized denominations, bearing
the same rate of interest, and of the same aggregate principal
amount will be issued to the designated transferee or
transferees.
The City and the paying Agent/Registrar, and any agent
of either, shall treat the Holder hereof whose name appears on
the Security Register (i) on the Record Date as the owner
hereof for purposes of receiving payment of interest hereon,
(ii) on the date of surrender of this Certificate as the owner
hereof for purposes of receiving payment of principal hereof at
its Stated Maturity, or its redemption, in whole or in part,
and (i 1i) on any date for a II other purposes, and nei ther the
City nor the paying Agent/Registrar, or any such agent of
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305lZ
either, shall be affected by notice to the contrary. In the
event of a non-payment of interest on a scheduled payment date,
and for thirty (30) days thereafter, a new record date for such
interest payment (a Special Record Date) will be established
by the Paying Agent/Registrar, if and when funds for the
payment of such interest have been received from the City.
Notice of the Special Record Date and of the scheduled payment
date of the past due interest (the Special Payment Date
which shall be fifteen (l5) days after the Special Record Date)
shall be sent at least five (5) business days prior to the
Special Record Date by united States Mail, first-class postage
prepaid, to the address of each Holder appearing on the
Security Register at the close of business on the last business
day next preceding the date of mailing of such notice.
It is hereby certified, covenanted, and represented
that all acts, conditions, and things required to be performed,
exist, and be done precedent to the issuance of this
Certificate in order to render the same a legal, valid, and
binding obligation of the City have been performed, exist, and
have been done, in regular and due time, form, and manner, as
required by law, and that issuance of the Certificates does not
exceed any constitutional or statutory limitation. In case any
provision in this Certificate or any application thereof shall
be deemed invalid, illegal, or unenforceable, the validity,
legality, and enforceability of the remaining provisions and
applications shall not in any way be affected or impaired
thereby. The terms and provisions of this Certificate and the
Ordinance shall be construed in accordance with and shall be
governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the City has caused
Certificate to be duly executed under its official seal.
this
CITY OF SCHERTZ, TEXAS
By
.......................... .
Mayor
ATTEST:
......................... .
City Secretary
(CITY SEAL)
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C.
XForm of ReGistration
of Public Accounts
~rtificate(s) Only.
Certificate of Comptroller
to Appear on Initial
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
THE STnTE OF TEXAS
~
~
~
~
REGISTER NO. ............
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS
I HEREBY CERTIFY that
examined, certified as to validity
General of the State of Texas,
Comptroller of Public Accounts of
this Certificate has been
and approved by the Attorney
and duly registered by the
the State of Texas.
WITNESS
my
signature
and
seal
of
office
this
......................... .
............................... .
Comptroller of Public Accounts
of the State of Texas
(SEAL)
x Note to Printer: Not to appear on printed Certificates
D. Form of Certificate of PayinG Aoent/ReGistrar to
Appear on Definitive Certificates Only.
This Certificate has been duly issued under the
provisions of the within-mentioned Ordinance; the Certificate
or Certificates of the above-entitled and designated series
originally delivered having been approved by the Attorney
General of the State of Texas and registered by the Comptroller
of Public Accounts, as shown by the records of the Paying
Agent/Registrar.
FIRST CITY, TEXAS--AUSTIN, N.A.,
Austin, Texas,
as Paying Agent/Registrar
Registered this date:
.................... .
By ............................
Authorized Officer
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305lZ
E. Form of Assianment.
ASSIGNMENT
FOR
assigns, and
and zip code
............................................................... .
VALUE RECEIVED the undersigned hereby sells,
transfers unto (print or typewrite name, address,
of transferee): ..................................
.........................................0.0................... .
(Social Security or other identifying number: .................
.. ....... .......) the within Certificate and all rights
thereunder, and hereby irrevocably constitutes and appoints
............................................................... .
attorney to transfer the within Certificate on the books kept
for registration thereof, with full power of substitution in the
premises.
DATED:
.................... .
............................ .
NOTICE: The signature on this
assignment must correspond
with the name of the regis-
tered owner as it appears
on the face of the within
Certificate in every particular.
Signature guaranteed:
F.
The I~~~ial Certificate(s) shall be in the f~rm
set fo~th in ~araar;~h B of ~hiS Section. ex~e~t
that he form of a sinal fullY reaistered
Initial Certificate shall be modified as follows:
(i)
immediately under the name
Certificate(s) the headings
Rate " and "stated Maturity
shall both be completed "as shown below";
of the
"Interest
..
(ii)
the first two paragraphs shall
follows:
read as
Registered Owner:
principal Amount:
The City of Schertz, Texas, a body corporate and
municipal corporation in the Counties of Guadalupe, Comal, and
Bexar, State of Texas, for value received, acknowledges itself
indebted to and hereby promises to pay to the Registered Owner
-16-
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named above, or the registered assigns thereof, the Principal
Amount specified above stated on the first day of February in
each of the years and in principal amounts and bearing interest
at per annum rates in accordance with the following schedule:
YEARS OF
STATED MATURITY
PRINCIPAL
AMOUNTS ($)
INTEREST
RATES----0il
(Information to be inserted from
schedule in Section 2 hereof).
(or so much thereof as shall not have been paid C.pon prior
redemption) and to pay interest on the unpaid Principal Amount
hereof from the Certificate Date specified above, or from the
most recent interest payment date to which interest has been
paid or duly provided for until the Principal Amount has become
due and payment thereof has been made or duly provided for, at
the per annum rates of interest specified above computed on the
basis of a 360-day year of twelve 30-day months; such interest
being payable on February 1 and August 1 of each year,
commencing February l, 1991.
Principal of this Certificate shall be payable to
the Registered Owner hereof (the Holder), upon its
presentation and surrender, at the principal corporate trust
office of First City, Texas--Austin, N.A., Austin, Texas (the
Paying Agent/Registrar). Interest shall be payable to the
Holder of this Certificate whose name appears on the Security
Register maintained by the Paying Agent/Registrar at the close
of business on the Record Date, which is the fifteenth day of
the month next preceding each interest payment date. All
payments of principal of and interest on this Certificate shall
be in any coin or currency of the United States of America
which at the time of payment is legal tender for the payment of
public and private debts. Interest shall be paid by the Paying
Agent/Registrar by check sent on or prior to the appropriate
date of payment by United States Mail, first-class postage
prepaid, to the Holder hereof at the address appearing in the
Security Register or by such other method, acceptable to the
paying Agent/Registrar, requested by, and at the risk and
expense of, the Holder hereof.
G. Insurance Leqend. If bond insurance is obtained
by the Purchaser for the Certificates, the Definitive
Certificates and the Initial Certificate(s) shall bear an
appropriate legend as provided by the insurer.
Ordinance
provided
SECTION 9: !2e.Jinitions. For all purposes of this
(as defined below), except as otherwise expressly
or unless the context otherwi se requi res: (i) the
-17-
305lZ
terms defined in this section have the meanings assigned to
them in this Section, and certain terms used in Section 27 of
this Ordinance have the meanings assigned to them in Section 27
of this Ordinance, and all such terms, include the plural as
well as the singular; (ii) all references in this Ordinance to
designated "Sections" and other subdivisions are to the
designated Sections and other subdivisions of this Ordinance as
originally adopted; and (iii) the words "herein", "hereof", and
"hereunder" and other words of similar import refer to this
Ordinance as a whole and not to any particular Section or other
subdivision.
(a) The term Additional Junior Lien
Obligations shall mean (i) any bonds,
notes, warrants, certificates of obligation
or any similar obligations hereafter issued
by the City that are payable, wholly or in
part, from and secured by a pledge of and
lien on the Net Revenues of the System on a
parity with the pledge of and lien on the
Net Revenues of the System securing the
payment of the currently outstanding Junior
Lien Obligations, all as further provided in
Section 20 of this Ordinance, and (ii)
obligations issued to refund any of the
foregoing.
(b) The term Addi tional Limi ted
Pledge Obligations shall mean (i) any
bonds, notes, warrants, certificates of
obligation or other obligations hereafter
issued by the City payable, wholly or in
part, from a pledge of and lien on Net
Revenues of the System, which pledge of
revenues is made subject to the limitations
imposed by Texas Revised Civil Statutes
Annotated Article lll2, as amended, all as
further provided in Section 20 of this
Ordinance, and (ii) obligations issued to
refund any of the foregoing.
(c) The term Additional Prior Lien
ObI igations shall mean (i) any bonds,
notes, warrants, certificates of obligation
or any similar obligations hereafter issued
by the City that are payable from and
secured solely by a pledge of and lien on
the Net Revenues of the System on a parity
with the pledge of and lien on the Net
Revenues of the System securing payment
-l8-
305lZ
305lZ
of the currently outstanding Prior
Obligations, all as further provided
Section 20 of this Ordinance, and
obligations issued to refund any of
foregoing.
Lien
in
(ii)
the
(d) The term Cert ificates shall mean
the $850,000, "CITY OF SCHERTZ, TEXAS,
COMBINATION TAX AND LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1990"
authorized by this Ordinance. The
Certificates shall be payable from the levy
of an ad valorem tax within the limitations
prescribed by law, upon all taxable property
in the City and from a lien on and pledge of
the Pledged Revenues of the System, such
pledge being subordinate and inferior to the
lien on and pledge of the Net Revenues of
the System that are pledged to the payment
and security of the currently outstanding
Prior Lien Obligations and Junior Lien
Obligations or will be pledged to the
payment of any Additional Prior Lien
Obligations, Additional Junior Lien
Obligations, or Subordinate Lien Obligations
hereafter issued by the City.
(e) The term Certificate Fund shall
mean the special Fund created and
established by the provisions of Section lO
of this Ordinance.
(f) The term
City of Schertz,
appropriate, the City
City shall mean the
Texas, and, where
Council of the City.
(g) The term Closing Date shall mean
the date of physical delivery of the initial
Certificates in exchange for the payment in
full by the initial Purchaser thereof.
(h) The term Collection Date shall
mean, when reference is being made to the
levy and collection of annual ad valorem
taxes, the date the annual ad valorem taxes
levied each year by the City become
de linquent.
(i) The term Debt Service
Requirement shall mean, as of any
particular date of computation, with respect
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305lZ
to any obligations and with respect to any
period, the aggregate of the amounts to be
paid or set aside by the City as of such
date or in such period for the payment of
the principal of, premium, if any, and
interest (to the extent not capitalized) on
such obligations; assuming, in the case of
obligations without a fixed numerical rate,
that such obligations bear interest at the
maximum rate permitted by the terms thereof
and further assuming in the case of
obligations required to be redeemed or
prepaid as to principal prior to Stated
Maturity, the principal amounts thereof will
be redeemed prior to Stated Maturity in
accordance with the mandatory redemption
provisions applicable thereto.
(j) The term Depository shall mean
an official depository bank of the City.
(k) The term Fiscal Year shall mean
the annual financial accounting period for
the System now ending on September 30th of
each year; provided, however, the City
Council may change such annual financial
accounting period to end on another date if
such change is found and determined to be
necessary for accounting purposes or is
required by applicable law.
(I) The term Government Securities,
as used herein, shall mean direct
obligations of, or obligations the principal
of and interest on which are unconditionally
guaranteed by, the united States of America,
which are non-callable prior to the
respective Stated Maturities of the
Certificates and may be united States
Treasury Obligations such as the State and
Loca 1 Government Ser ies and may be in
book-entry form.
(m) The term Gross Revenues for any
period sha Ii mean a II revenue during such
period in respect or on account of the
operation or ownership of the System,
excluding refundable meter deposits,
restricted gifts, and grants in aid of
construction, but including earnings and
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305lZ
income
deposit
account
payment
derived from
of money in
created and
or security of
the investmen'-
any special fund
established for
the Certificates.
or
or
the
(n)
sha II mean
appears in
certificate.
term Holder or Holders
registered owner, whose name
Security Register, for any
The
the
the
(0) The term Interest Payment Date
shall mean the date semi-annual interest is
payable on the Certificates, being
February I and August 1 of each year,
commencing February l, 1991.
(p) The term Junior Lien ObI igat ions
shall mean (i) the currently outstanding and
unpaid certificates of obligation of the
City, payable from the levy of an ad valorem
tax, within the limitations prescribed by
law, upon all taxable property of the City
and are further payable from and secured by
a junior lien on and pledge of the Net
Revenues of the System, such pledge being
junior and inferior to the lien on and
pledge of the Net Revenues of the System
that are or will be pledged to the payment
of the Prior Lien Obligations and any
Additional Prior Lien Obligations hereafter
issued by the City, but prior and superior
to the lien on and pledge of the Net
Revenues of the System that are or will be
pledged to the payment of any Subordinate
Lien Obligations hereafter issued by the
City and the Certificates and any Additional
Limi ted Pledge Obligations hereafter issued
by the City identified as follows:
(1) "City of Schertz,
Combination Tax and Junior Lien
Certificates of Obligation,
1981", dated February I,
originally issued in the
principal amount of $l50,000;
Texas
Revenue
Series
1981,
aggregate
(2) "City of Schertz, Texas
Combination Tax and Junior Lien
Waterworks and Sewer System Revenue
Certificates of Jbligation, Series
-2l-
305lZ
1983",
issued
amount
dated May 1, 1983,
in the aggregate
of $1,250,000; and
orig ina lly
principal
(ii) obligations hereafter issued to refund
any of the foregoing.
(q) The term Maintenance and
Operating Expenses shall mean all current
expenses of operating and maintaining the
System not paid from the proceeds of the
Certificates, including (l) the cost of
all salaries, labor, materials, repairs, and
extensions necessary to render efficient
service, but only if, in the case of
repairs and extensions, they are, in the
judgment of the City Council (reasonably and
fairly exercised), necessary to maintain
operation of the System and render adequate
service cO the City and the inhabitants
thereof, or are necessary to meet some
physical accident or condition which would
ot~erwise impair obligations payable from
Nt c Revenues, (2) payments to pension,
retirement, health, hospitalization, and
other employee benefit funds for employees
of the City engaged in the operation or
maintenance of the System, (3) payments
under contracts for the purchase of water
supply, treatment of sewage, or other
materials, goods, or services for the system
to the extent authorized by law and the
provisions of such contract, (4) payments to
auditors, attorneys, and other consultants
incurred in complying with the obligations
of the City hereunder, and (5) any legal
liability of the City arising out of the
operation, maintenance, or condition of the
System, but excluding any allowance for
depreciation, property retirement,
depletion, obsolescence, and other items not
requiring an outlay of cash and any interest
on the Certificates or other bonds, notes,
warrants, or similar obligations of the City
payable from Net Revenues.
(r) The term Net Revenues for any
period shall mean the Gross Revenues of the
System less the Maintenance and Operating
Expenses of the System.
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305lZ
(v) The term Pledged Revenue Amount
shall mean the total amount, not to exceed
$1,000 while the Certificates are
Outstanding, of Net Revenues that may be
transferred by the City, in any given Fiscal
Year (however, any amounts transferred prior
to the final maturity date of the
Certificates may not exceed the total amount
of $l,OOO), to the Certificate Fund.
(w) The term Prior Lien Obligations
shall mean (i) the currently outstanding and
unpaid revenue bonds of the City that are
payable from and equally and ratably secured
solely by a first lien on and pledge of the
Net Revenues of the System identified as
follows:
(l) "City of Schertz, Texas Uti li ty
System Revenue Bonds, Series 1968",
dated March l, 1968, originally issued
in the aggregate principal amount of
$579,000;
(2) "City of Schertz, Texas utility
System Revenue Bonds, Series 1973",
dated April l, 1973, originally issued
in the aggregate principal amount of
$l65,000;
(3) "City of Schertz, Texas utility
System Revenue Bonds, Series 1975",
dated March I, 1975, originally issued
in the aggregate principal amount of
$325,000;
(4)
System
dated
issued
amount
"City of Schertz, Texas utility
Revenue Bonds, Series 1981",
February l, 1981, originally
in the aggregate principal
of $475,000;
(5) "City of Schertz, Texas Utility
System Revenue Bonds, Series 1987",
dated March l, 1987, originally issued
in the aggregate principal amount of
$l,020,000; and
(ii) any obligations issued to refund such
indebtedness.
-24-
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Purchaser shall mean
or purchasers of the
Section 26 of this
(x) The term
the ini t i a 1 purchaser
Certificates named in
Ordinance.
(y) The term Stated Maturity shall
mean the annual principal payments of the
Certificates payable on February 1 of each
year as set forth in Section 2 of this
Ordinance.
(z) The term Subordinate Lien
ObI igations shall mean (i) any bonds,
notes, warrants, certificates of obligation,
or any similar obligations hereafter issued
by the City that are payable, in whole or in
part, from and secured by a subordinate lien
on and pledge of the Net Revenues of the
System, such pledge being subordinate and
inferior to the lien on and pledge of the
Net Revenues of the System that are or will
be pledged to the payment of the currently
outstanding Prior Lien Obligations and
Junior Lien Obligations and any Additional
Prior Lien Obligations or Additional Junior
Lien Obligations hereafter issued by the
City, but prior and superior to the lien on
and limited pledge of the Net Revenues of
the System that are or will be pledged to
the payment of the Certificates and any
Additional Limited Pledge Obligations
hereafter issued by the City, and (ii)
obligations hereafter issued to refund any
of the foregoing.
(aa) The term System shall mean all
properties, facilities, and plants currently
owned, operated, and maintained by the City
for the supply, treatment, transmission, and
distribution of treated potable water and
the collection, treatment, and disposal of
waterborne wastes together wi th a II future
extensions, improvements, and additions
thereto and replacements thereof,
excluding from the foregoing, however, to
the extent now or hereafter authorized or
permitted by law, facilities of any kind
which are declared by the City Council,
prior to the acquisition or construction
thereof by the City, not to be a part of the
-25-
System and which are not acquired or
constructed by or on behalf of the City with
Gross Revenues of the System or any part
thereof or wi th proceeds f rom the issuance
of obligations of the City which are payable
from Gross Revenues of the System or any
part thereof.
SECTION 10: ~rtificate Fund: Investments. For the
purpose of paying the interest on and to provide a sinking fund
for the payment, redemption, and retirement of the
Certificates, there shall be and is hereby created a special
Fund to be designated "SPECIAL COMBINATION TAX AND LIMITED
PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 1990,
INTEREST AND SINKING FUND" (the Certificate Fund), which Fund
shall be kept and maintained at the City's Depository, and
money deposited in the Certificate Fund shall be used for no
other purpose and shall be maintained as provided in
Section 27. Authorized officials of the City are hereby
authorized and directed to make withdrawals from said Fund
sufficient to pay the principal of and interest on the
Certificates as the same become due and payable and shall cause
to be transferred to the Paying Agent/Registrar from money on
deposit in the Certificate Fund an amount sufficient to pay the
amount of principal and/or interest falling due on the
Certificates, such transfer of funds to the paying
Agent/Registrar to be made in such manner as will cause
immediately available funds to be deposited with the Paying
Agent/Registrar on or before the last business day next
preceding each interest and principal payment date for the
Certificates.
The City, at its sole discretion, may deposit the
Pledged Revenue Amount to the Certificate Fund. The Pledged
Revenue Amount, if deposited, shall be expended annually to pay
principal of and interest on the Certificates as the same
become due and payable. This Pledged Revenue Amount shall be
accounted for and transferred to the Paying Agent/Registrar in
accordance with the provisions of the previous paragraph of
this Section.
Pending the transfer of funds to the Paying
Agent/Registrar, money in the Certificate Fund may, at the
option of the City, be placed in time deposits or certificates
of deposit, as permitted by the provisions of the Public Funds
Investment Act of 1987, as amended, Texas Revised Civil
Statutes Annotated Article 842a-2, secured (to the extent not
insured by the Federal Deposit Insurance Corporation) by
obligations of the type hereinafter described, or be invested,
as authorized by law, including investments held in book-entry
-26-
305lZ
form, in securities including, but not limited to, direct
obligations of the united States of America, obligations
guaranteed or insured by the United States of America, which,
in the opinion of the Attorney General of the United States,
are backed by its full faith and credit or represent its
general obligations, or invested in indirect obligations of the
United states of America, including, but not limited to,
evidences of indebtedness issued, insured or guaranteed by such
governmental agencies as the Federal Land Banks, Federal
Intermediate Credit Banks, Banks for Cooperatives, Federal Home
Loan Banks, Government National Mortgage Association, Farmers
Home Administration, Federal Home Loan Mortgage Association,
Small Business Administration, or Federal Housing Association;
provided that all such deposits and investments shall be made
in such a manner that the money required to be expended from
such Fund will be available at the proper time or times. All
interest and income derived from deposits and investments in
the Certificate Fund shall be credited to, and any losses
debi ted to, the Certi f icate Fund. All such investments sha II
be sold promptly when necessary to prevent any default in
connection with the Certificates.
SECTION ll: Tax Le.YY. To provide for the payment of
the Debt Service Requirements on the Certificates being (i) the
interest on the Certificates and (ii) a sinking fund for their
redemption at Stated Maturity or a sinking fund of 2%
(whichever amount shall be the greater), there shall be and
there is hereby levied for the current year and each succeeding
year thereafter while the Certificates or any interest thereon
shall remain Outstanding, a sufficient tax on each one hundred
dollars' valuation of taxable property in the City, adequate to
pay such Debt Service Requirements, full allowance being made
for delinquencies and costs of. collection; said tax shall be
assessed and collected each year and applied to the payment of
the Debt Service Requirements, and the same shall not be
diverted to any other purpose. The taxes so levied and
collected shall be paid into the certificate Fund. The City
Council hereby declares its purpose and intent to provide and
levy a tax legally and fully sufficient to pay the said Debt
Service Requirements, it having been determined that the
existing and available taxing authority of the City for such
purpose is adequate to permit a legally sufficient tax in
consideration of all other outstanding indebtedness.
The amount of taxes to be provided annually for the
payment of the principal of and interest on the Certificates
shall be determined and accomplished in the following manner:
A. Prior to the date the City Council
the annual tax rate and passes an ordinance levying
taxes each year, the City Council shall determine:
establishes
ad valorem
-27-
305lZ
(l) the amount of Debt Service
Requirements to become due and payable on
the Certificates between the Collection Da~e
for the taxes then to be levied and tae
Collectiol. Date for the taxes to be levied
during the next succeeding calendar year;
(2) the amount on depose.. in the
Certificate Fund after (a) deducting
therefrom the total amount of Debt Service
Requirements to become due on Certificates
prior to the Collection Date for the ad
valorem taxes to be levied and (b) adding
thereto the amount of the Pledged Revenues,
if any, to be appropriated and allocated
during such year to pay such Debt Service
Requirements, if any, prior to the
Collection Date for the ad valorem taxes to
be levied; and
(3) the amount of Pledged Revenues, if
any, to be appropriated and to be set aside
for the payment of the Debt Service
Requirements on the Certificates between the
Collection Date for the taxes then to be
levied and the Collection Date for the taxes
to be levied during the next succeeding
Fiscal Year.
B. The amount of taxes to be levied annua lly each
year to pay the Debt Service Requirements on the Certificates
shall be the amount established in paragraph (l) above less the
sum total of the amounts established in paragraphs (2) and (3),
after taking into consideration delinquencies and costs of
collecting such annual taxes.
SECTION 12: Pledae of Pledaed Revenues. The City
hereby covenants and agrees that, subject to any prior lien on
and pledge of the Net Revenues of the System to the payment and
security of any outstanding Prior Lien Obligations and Junior
Lien Obligations, and any Additional Prior Lien Obligations,
Additional Junior Lien Obligations, and Subordinate Lien
Obligations hereafter issued by the City, the Pledged Revenues
are hereby irrevocably pledged to the payment of the principal
of and interest on the Certificates or any Additional Limited
Pledge Obligations hereafter issued by the City, and the pledge
of Pledged Revenues herein made for the payment of the
Certificates shall constitute a lien on the Pledged Revenues in
accordance with the terms and provisions hereof and be valid
and binding without any physical delivery thereof or further
act by the City.
-28-
305lZ
SECTION 13: System FunQ. The City hereby covenants
and agrees that all Gross Revenues derived from the operation
of the System shall be kept separate and apart from all other
funds, accounts, and money of the Ci ty and sha II be depos i ted
as collected into the "CITY OF SCHERTZ WATERWORKS AND SEWER
SYSTEM FUND" (the System Fund). All money deposited in the
System Fund shall be pledged and appropriated to the extent
required for the fOllowing purposes and in the order of
priority shown:
Ft~st: to the payment of the reasonable and
proper Maintenance and Operating Expenses of
the System required by statute or ordinances
authorizing the issuance of any indebtedness
of the City to be a first charge on and
claim against the Gross Revenues of the
System;
Second: to the payment of the amounts that
may be deposi ted in the speci a I funds and
accounts established for the payment,
security, and benefit of the Prior Lien
Obligations and any Additional Prior Lien
Obligations hereafter issued by the City;
Ihi rd: to the payment of the amounts that
may be deposited in the special funds and
accounts established for the payment,
security, and benefit of the Junior Lien
Obligations and any Additional Junior Lien
Obligations hereafter issued by the City;
Fourth: to the payment of the amounts that
may be deposited in the special funds and
accounts established for the payment,
security, and benefit of the Subordinate
Lien Obligations and any Additional
Subordinate Lien Obligations hereafter
issued by the City; and
Fifth: to the payment of the amounts that
may be deposited in the special funds and
accounts established for the payment of the
Certificates or any Additional Limited
Pledge Obligations hereafter issued by the
City.
Any Net Revenues
satisfying the foregoing
sufficient provision for
remaining in
payments, or
the payment,
the System Fund after
making adequate and
security and benefit
305lZ
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repairing the property damaged, and adequate provision for
making good such loss or damage must be 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 considered Maintenance and Operating Expenses. Nothing in
this Ordinance shall be construed as requiring the City to
expend any funds which are derived from sources other than the
operation of the System but nothing herei.n shall be construed
as preventing the City from doing so.
SECTION l7: Rates aQd Char~es. The City hereby
covenants and agrees ith the Holders of the Certificates that
rates and charges for water and sewer services afforded by the
System will be established and maintained to provide Gross
Revenues sufficient at all times:
A.
the System;
to pay all Maintenance and Operating Expenses of
B. to produce Net Revenues sufficient, together with
any other lawfully available funds, to pay (i) the interest on
and principal of the currently outstanding Prior Lien
Obligations and any Additional Prior Lien Obligations hereafter
issued by the City, as the same becomes due and payable and the
amounts required to be deposited in any special Fund created
and established for the payment, security, and benefit thereof,
(ii) the interest on and principal of the Junior Lien
Obligations and any Additional Junior Lien Obligations
hereafter issued by the City as the same becomes due and
payable and the amounts required to be deposited in any special
Fund created and established for the payment, security, and
benefit thereof, (iii) the interest on and principal of any
Subordinate Lien Obligations hereafter issued by the City as
the same becomes due and payable and the amounts required to be
deposited in any special Fund created and established for the
payment, security, and benefit thereof, and (iv) the amounts
that may be deposited in the special Funds established for the
payment of the Certificates and any Additional Limited Pledge
Obligations hereafter issued by the City; and
payable
l'en on
C. to pay other
from the Net Revenues
the System or the Net
legally incurred
of the System and/or
Revenues thereof.
indebtedness
secured by a
SECTION l8: Records and Ac~nts - Annual Audit. The
Ci ty further covenants and agrees that so long as any of the
Certificates remain Outstanding it will keep and maintain
separate and complete records and accounts pertaining to the
operations of the System in which complete and correct entries
shall be made of all transactions relating thereto, as provided
-3l-
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by Texas Revised Civil Statutes Annotated Article lll3, as
amended, or other applicable law. The Holders of the
Certificates or any duly authorized agent or agents of the
Holders shall have the right to inspect the System and all
properties comprising the same. The City further agrees that,
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. Copies of each annual audit
shall be furnished to the Executive Director of the Municipal
Advisory Council of Texas at his office in Austin, Texas, and,
upon written request, to the original purchaser of the
Certificates and any subsequent holder thereof. Expenses
incurred in making the annual audit of the operations of the
System are to be regarded as Maintenance and Operating Expenses.
SECTION 19: R~medigs in Event of Default. In
addition to all the rights and remedies provided by the laws of
the State of Texas, the City covenants and agrees particularly
that in the event the City (a) defaults in the payments to be
made to the Certificate Fund, or (b) defaults in the observance
or performance of any other of the covenants, conditions, or
obligations set forth in this Ordinance, the Holders of any of
the Certificates shall be entitled to seek a writ of mandamus
issued by a court of proper jurisdiction compelling and
requiring the governing body of the City and other officers of
the City to observe and perform any covenant, condition, or
obligation prescribed in this Ordinance.
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 remedies shall not be deemed to be exclusive.
SECTION 20: ~~UQnce of AddLtional Pri~____~u
Qpliaations. Additional Junior Lien Obliaations. Subordin~
Lien Obliaations. and Additional Limited Pledae Obliaations.
The City hereby expressly reserves the right to hereafter issue
bonds, notes, warrants, certificates of obligation, or similar
obligations, payable wholly or in part, as appropriate, from
and secured by a pledge of and lien on the Net Revenues of the
System with the following priorities, without limitation as to
principal amount, but subject to any terms, conditions, or
restrictions applicable thereto under existing ordinances,
laws, or otherwise:
A. Additional Prior Lien Obligations secured by a
lien on and pledge of the Net Revenues on a parity with the
lien securing payment of the currently outstanding Prior Lien
Obligations;
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B. Additional Junior Lien Obligations secured by a
lien on and pledge of the Net Revenues on a parity with the
lien securing payment of the currently outstanding Junior Lien
Obligations;
C. Subordinate Lien Obligations secured by a lien on
and pledge of the Net Revenues of the System that is
subordinate and inferior to the lien on and pledge of the Net
Revenues of the System that are or will be pledged to the
payment of the currently outstanding Prior Lien Obligations and
Junior Lien Obligations and any Additional Prior Lien
Obligations or Additional Junior Lien Obligations hereafter
issued by the City, but prior and superior to the lien on and
limited pledge of the Net Revenues of the System that are or
will be pledged to the payment of the Certificates and any
Additional Limited Pledge Obligations hereafter issued by the
City; and
D. Additiona 1 Limi ted Pledge
a limited pledge on the Net Revenues
provisions of the following paragraph.
Obligations secured by
in accordance wi th the
Additional Prior Lien Obligations, Additional Junior
Lien Obligations, or Subordinate Lien Obligations, if issued,
may be payable, in whole or in part, from Net Revenues (without
impairment of the obligation of contract with the Holders of
Cert i f icates) upon such terms and condi t ions as the Ci ty may
determine. Additional Limited Pledge Obligations, if issued
and payable, in whole or in part, from Pledged Revenues
(defined in the same or similar terms as provided in Section 9
of this Ordinance), shall not in any event be construed to be
payable from the Pledged Revenues authorized by this Ordinance
to be budgeted and appropriated for the payment of the
Certificates. However, the pledge of and lien on the Pledged
Revenues of the System securing the payment of any Additional
Limited Pledge Obligations shall be subordinate and inferior to
the pledge of and lien on the Net Revenues securing the payment
of any outstanding Prior Lien Obligations or Junior Lien
obligations, or any Additional Prior Lien Obligations,
Additional Junior Lien Obligations, or Subordinate Lien
Obligations hereafter issued by the City.
SECTION 2l: Special
further covenants that:
Covenants.
The
City
hereby
A. it has the lawful power to pledge
Revenues supporting the Certificates and has lawfully
said powers under the laws of the State of Texas,
power existing under Texas Revised Civil Statutes
Article ll75, as amended, Texas Revised Civil
the Net
exercised
including
Annotated
Statutes
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305lZ
Annotated Articles llll through lll8, inclusive, as amended,
the Certificate of Obligation Act of 1971, as amended, Local
Government Code Section 271. 04l through Section 271. 063, and
the City's Home Rule Charter;
B. other than for the
prior Lien Obligations, Junior
Certificates, the Net Revenues of
manner been pledged to the payment
the City or of the System;
payment of any outstanding
Lien Obligations, and the
the System have not in any
of any debt or obligation of
C. as long as any Certificates or any interest
thereon remain Outstanding, the City will not sell, lease or
encumber (except in the manner provided in Section 20 of this
Ordinance) the System or any substantial part thereof, provided
that this covenant shall not be construed to prohibit the sale
of such machinery, or other properties or equipment which has
become obsolete or otherwise unsuited to the efficient
operation of the System; and
D. to the extent that it lega lly may, the Ci ty
further covenants and agrees that, so long as any of the
Certificates, or any interest thereon, are Outstanding, no
franchise shall be granted for the installation or operation of
any competing waterworks and sewer systems other than those
owned by the City, and the operation of any such systems by
anyone other than the City is hereby prohibited.
SECTION 22: Applicat.ion of tll.e...--. Covenants aM
~reements of the Prior Lien Obliaations and Junior Lien
Obliaations. It is the intention of the City Council and
accordingly hereby recognized and stipulated that the
provisions, agreements, and covenants contained herein bearing
upon the management and operations of the System, and the
administering and application of Gross Revenues derived from
the operation thereof, shall to the extent possible be
harmonized with like provisions, agreements and covenants
contained in the ordinances authorizing the issuance of the
currently outstanding Prior Lien Obligations and Junior Lien
Obligations and to the extent of any irreconcilable conflict
between the provisions contained herein and in the ordinances
authorizing the issuance of the currently outstanding Prior
Lien Obligations, the provisions, agreements, and covenants
contained therein shall prevail to the extent of such conflict
and be applicable to this Ordinance, especially the priority of
rights and benefits conferred thereby to the owners of the
currently outstanding Prior Lien Obligations and Junior Lien
Obligations.
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305lZ
SECTION 23: Notices to Holders; Waiver.
this Ordinance provides for notice to Holders of
such notice shall be sufficiently given (unless
herein expressly provided) if in writing and sent
States Mail, first-class postage prepaid, to the
each Holder as i' appears in the Security Register.
Wherever
any event,
otherwise
by Uni ted
address of
In any case where notice to Holders is given by mail,
neither the failure to mail such notice to any particular
Holders, nor any defect in any notice so mailed, shall affect
the sUfficiency of such notice with respect to all other
Holders. Where this Ordinance provides for notice in any
manner, such notice may be waived in writing by the Holder
entitled to receive such notice, either before or after the
event with respect to which such notice is given, and such
wa i ver shall be the equi va lent of such notice. Wa i vers of
notice by Holders shall be filed with the Paying
Agent/Registrar, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon
such waiver.
SECTION 24: ~ancellation. All Certificates
surrendered for payment, transfer, exchange, or replacement, if
surrendered to the Paying Agent/Registrar, shall be promptly
cancelled by it and, if surrendered to the City, shall be
delivered to the Paying Agent/Registrar and, if not already
cancelled, shall be promptly cancelled by the Paying
Agent/Registrar. The City may at any time deliver to the
Paying Agent/Registrar for cancellation any Certificates
previously certified or registered and delivered which the City
may have acquired in any manner whatsoever, and all
Certificates so delivered shall be promptly cancelled by the
paying Agent/Registrar. All cancelled Certificates held by the
Paying Agent/Registrar shall be destroyed as directed by the
City.
SECTION 25: Mutilat~~~troYed. Lost. and Stol~n
Certificates. If (1) any mutilated Certificate is surrendered
to the Paying Agent/Registrar, or the City and the Paying
Agent/Registrar receive evidence to their satisfaction of the
destruction, loss, or theft of any Certificate, and (2) there
is delivered to the City and the Paying Agent/Registrar such
security or indemnity as may be required to save each of them
harmless, then, in the absence of notice to the City or the
Paying Agent/Registrar that such Certificate has been acquired
by a bona fide purchaser, the City shall execute and, upon its
request, the Paying Agent/Registrar shall register and deliver,
in exchange for or in lieu of any such mutilated, destroyed,
lost, or stolen Certificate, a new Certificate of the same
Stated Maturity and interest rate and of like tenor and
-35-
305lZ
principal amount,
outstanding.
bearing
a
number
not
contemporaneously
In case any such mutilated,
Certificate has become or is about
the City in its discretion may,
Certificate, pay such Certificate.
destroyed, lost, or stolen
to become due and payable,
instead of issuing a new
Upon the issuance of any new Certificate or payment in
lieu thereof, under this Section, the City may require payment
by the Holder of a sum sufficient to cover any tax or other
governmental charge imposed in relation thereto and any other
expenses (including attorney's fees and the fees and expenses
of the Paying Agent/Registrar) connected therewith.
Every new Certificate issued pursuant to this Section
in lieu of any mutilated, destroyed, lost, or stolen
Certificate shall constitute a replacement of the prior
obligation of the City, whether or not the mutilated,
dest royed, lost, or sto len Cert i f icate sha II be at any time
enforceable by anyone, and shall be entitled to all the
benefits of this Ordinance equally and ratably with all other
Outstanding Certificates.
The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies
with respect to the replacement and payment of mutilated,
destroyed, lost, or stolen Certificates.
SECTION 26: Sale of the Certificates; Use of
Proceeds. The sale of the Certificates to Knibbe Financial Group. Inc.
and Southwest Securities. Inc.. Jt. Manavers
(the Purchaser and having all the rights, benefits, and
Obligations of a Holder) at the price of par, plus accrued
interest to the date of delivery, plus a premium of -0- or
less a discount of -0- is hereby confirmed. Delivery of
the Certificates shall be made to the Purchaser as soon as
practicable after the adoption of this Ordinance, upon payment
therefor in accordance with the terms of sale.
Proceeds from the sale of the Certificates shall be
applied as follows:
(l) Accrued interest and premium, if any, received
from the Purchaser shall be deposited into the Certificate Fund.
(2) The balance of the proceeds derived from the sale
of the Certificates (after paying costs of issuance) shall be
deposited into the special construction account or accounts
created for the projects to be constructed with the proceeds of
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305lZ
305lZ
(3) any annuity contract, or any other deferred
payment contract acquired to fund an obligation of the
Issuer, or
(4) any other property held for investment,
but excluding Tax-Exempt Obligations.
"Issue Price" means the aggregate initial
offering price of each Stated Maturity of the
Certificates to the public, at or below which a
substantial amount of each Stated Maturity of tho
Certificates were sold to the public, includi
accrued interest and premium or discount, if any. For
purposes of thi s def ini tion, the term "public" does
not include (a) the Purchaser, (b) members of the
syndicate, if any, managed by the Purchaser, or (c)
any bondhouses, brokers, dea lers, and simi la r persons
or organizations acting in the capacity of
underwriters or wholesalers.
"Net Proceeds" means the original proceeds of
the Cert i f icates, less amounts depos i ted to any
reasonably required reserve or replacement fund.
"Nonpurpose Investment" means any Investment in
which Gross Proceeds of the Certificates are invested
and which is not acquired to carry out the
governmental purposes of the Certificates.
"Purchase
means
Price"
Investment
Property
of
any
(1) if a United States Treasury obligation
acquired directly from the United States Treasury, the
amount paid therefor,
(2) if a certificate of deposit issued by a
commercial bank, the bona fide bid price quoted by a
dealer who maintains an active secondary market in
such certificates of deposit, and
(3) otherwise, generally the mean of the bid
price and the offered price therefor on an established
market on the day on which such Investment Property is
purchased or contracted for or, if there are no bid
prices and offered prices on such date, on the first
day preceding such date for which there are bid prices
and offered prices.
"Rebatable Arbitrage" has the meaning set forth
in Temporary Regulation Section l.l48-2T.
-38-
"Temporary Regulations" mean Temporary Treasury
Regulations Sections 1.148, 1.149, and 1.150 as the
same shall be amended or promulgated as final Treasury
Regulations effective as of the closing date for the
Certificates (the "Closing Date").
"Tax-Exempt ObI igations" mean (i) obligations
the interest on which is excludable from the gross
income of any owner thereof under section l03 of the
Code and is not an item of tax preference under
section '7 of the Code, including any beneficial
interest in a trust, the assets of which consist
exclusively of such obligations, but excluding shares
in any mutual fund which is invested in such
obligations, unless such fund is a qualified regulated
investment company, and (ii) one-day certificates of
indebtedness issued by the United States Treasury
pursuant to the Demand Deposit State and Local
Government Series Program.
"Yield" of
(l) any
set forth
1.148-2T, and
Investment Property has the meaning
in Temporary Regulation Section
(2) the Certificates has the meaning set
forth in Temporary Regulation Section l.l48-3T.
B. Not to Cause Interest to Become Taxable. The
City shall not use, permit the use of, or omit to use Gross
Proceeds or any other amounts (or any property the acquisition,
construction, or improvement of which is to be financed
directly or indirectly with Gross Proceeds) in a manner which,
if made or omitted, respectively, would cause the interest on
any Certificate to become includable in the gross income, as
defined in section 61 of the Code, of the owner thereof for
federal income tax purposes. Without limiting the generality
of the foregoing, unless and until the City shall have received
a written opinion of counsel nationally recognized in the field
of municipal bond law to the effect that failure to comply with
such covenant will not adversely affect the exemption from
federal income tax of the interest on any Certificate, the City
shall comply with each of the specific covenants in this
Section.
C. No privat.e Use or Private Payments. Except as
permitted by section l41 of the Code and the regulations and
rulings thereunder, the City shall, at all times prior to the
last Stated Maturity of the Certificates,
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305lZ
(l) exclusively own, operate, and possess all
property the acquisition, construction, or improvement
of which is to be financed directly or indirectly with
Gross Proceeds and not use or permit the use of Gross
Proceeds or any property acquired, constructed, or
improved with Gross Proceeds in any activity carried
on by any person or entity other than a state or local
government, unless such use is solely as a member of
the general public, or
(2) not directly or indirectly impose or accept
any charge or other payment for use of Gross Proceeds
or any property the acquisition, construction, or
improvement of which is to be financed directly or
indirectly with Gross Proceeds, other than a charge or
other payment merely as a member of the general public
or interest earned on investments acquired with Gross
Proceeds pending application for their intended
purposes, either or both.
D. No Private Loan. Except to the extent permitted
by section 14l of the Code and the regulations and rulings
thereunder, the City shall not use Gross Proceeds to make or
finance loans to any person or entity other than a state or
local government. For purposes of the foregoing covenant,
Gross Proceeds are considered to be "loaned" to a person or
entity if (l) property acquired, constructed, or improved with
Gross Proceeds is sold or leased to such person or entity in a
transaction which creates a debt for federal income tax
purposes, (2) capacity in or service from such property is
committed to such person or entity under a take-or-pay, output,
or similar contract or arrangement, or (3) indirect benefits,
or burdens and benefits of ownership, of Gross Proceeds or any
property acquired, constructed, or improved with Gross Proceeds
are otherwise transferred in a transaction which is the
economic equivalent of a loan.
E. Not to Invest at Hiaher Yield. Except to the
extent permitted by section l48 of the Code and the regulations
and rulings thereunder, the City shall not, at any time prior
to the final stated Maturity of the Certificates, directly or
indirectly invest Gross Proceeds in any Investment Property (or
use Gross Proceeds to replace money so invested), if as a
result of such investment the Yield from the Closing Date of
all Investment property acquired with Gross Proceeds (or with
money replaced thereby) whether then held or previously
disposed of, exceeds the Yield of the Certificates.
F. NQ.t FederallY Guaranteed. Except to the extent
permitted by section l49(b) of the Code and the regulations and
rulings thereunder, the City shall not take or omit to take any
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action which would cause the Certificates to be federally
guaranteed within the meaning of section l49(b) of the Code and
the regulations and rulings thereunder.
G. InformatiQ.n Report.. The City shall timely file
the information required by section 149(e) of the Code with the
Secretary of the Treasury on such form and in such place as
such Secretary may prescribe.
H. Reba.~QL-.A.Lbi tI.i1..9.e----.EJ;:p.Lits. Except to the
extent otherwise provided in section l48(f) of the Code and the
regulations and rulings thereunder or except to the extent the
City complies with Subsection J. of this Section:
(l) The City shall account for all Gross
Proceeds (including all receipts, expenditures, and
investments thereof) on its books of account
separately and apart from all other funds (and
receipts, expendi tures, and investments thereof) and
shall retain all records of such accounting for at
least six years after the day on which the last
Outstanding Certificate is discharged. The City may,
however, to the extent permitted by law, commingle
Gross Proceeds of the Certificates with other money of
the City, provided that the City separately accounts
for each receipt and exppnditure of Gross Proceeds and
the obligations acquired therewith.
(2) Not less frequently than each Computation
Date, the City shall calculate or cause to be
calculated by a nationally recognized accounting,
financial advisory firm, or financial institution, in
accordance with rules set forth in sect ion l48 (f) of
the Code and the regulations, Temporary Regulations,
and rulings thereunder, the Rebatable Arbitrage. The
City shall maintain such calculations with the
official transcript of the proceedings relating to the
issuance of the Certificates until six years after the
final Computation Date.
(3) As additional consideration for the purchase
of the Certificates by the Purchaser and the loan of
the money represented thereby, and in order to induce
such purchase by measures designed to insure the
excludability of the interest thereon from the gross
income of the owners thereof for federal income tax
purposes, the City shall pay to the United States out
of the Certificate Fund or its general fund, as
permitted by applicable statute, regulation, or
opinion of the Attorney General of the State of Texas,
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the amount described in paragraph (2) above, at the
times, in the installments, to the place, in the
manner, and accompanied by such forms or other
information as is or may be required by section 148(f)
of the Code and the regulations and rulings thereunder.
(4) The City shall exercise reasonable diligence
to assure that no errors are made in the c"lculations
required by paragraph (2) and, if such error is made,
to discover and promptly to correct such error within
a reasonable amount of time thereafter, including
payment to the United States of any Correction Amount
as described in Temporary Regulation Section
1.148-lT(c)(2), including any penalty related thereto.
1. Not to Divert Arbitraoe Profits. Except to the
extent permitted by section l48 of the Code and the regulations
and rulings thereunder, the City shall not, at any time prior
to the earlier of the Stated Maturity or final payment of the
Certificates enCer into any transaction that reduces the amount
required to be paid to the United States pursuant to
Subsection H. of this Section because such transaction results
in a smaller profit or a larger loss than would have resulted
if the transaction had been at arm's length and had the Yield
of the Certificates not been relevant to either party.
J. No RebaJ;e Reou ired. The
with the covenants and duties imposed
Subsection H. of this Section if
City need not comply
by the provisions of
(l) the City is a governmental unit with general
taxing powers;
and
used
(2)
all
for
95% of the Net Proceeds of the Certificates
income f rom the investment thereof wi II be
the governmental activities of the City;
(3) the aggregate face amount of all debt
obligations issued or expected to be issued by the
City or any subordinate entity in the calendar year in
which the Certificates are issued (including the
Certificates but excluding obligations to be redeemed
with proceeds of the Certificates within 90 days after
the date on which the Certificates are to be issued)
is not reasonably expected ) exceed $5,000,000; and
(4) the City otherwise satisfies the
requirements of paragraph (4) (c) of section l48(f) of
the Code and the regulations and rulings thereunder.
305lZ
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K. Q]ulified
hereby designates the
obligations for purposes
Tax-E~t Oblioations.. The City
Certificates as qualified tax-exeff~t
of section 265(b) of the Code.
SECTION 28: Control and Custody of CertificM.e.s.. The
Mayor of the City shall be and is hereby authorized to take and
have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas and
shall take and have charge and control of the Certificates
pending their approval by the Attorney General, the
registration thereof by the Comptroller of Public Accounts and
the delivery of the Certificates to the Purchaser.
Furthermore, the Mayor, Mayor Pro Tem, City Secretary,
City Manager, City Attorney or Director of Finance, either or
all, are hereby authorized and directed to furnish and execute
such documents relating to the City and its financial affairs
as may be necessary for the issuance of the Certificates, the
approval of the Attorney General and their registration by the
Comptroller of Public Accounts and, together with the City's
financial advisor, bond counsel, and the Paying
Agent/Registrar, make the necessary arrangements for the
delivery of the Initial Certificate to the Purchaser and the
initial exchange thereof for definitive Certificates.
SECTION 29: Satisfaction of Obliaation of City. If
the City shall payor cause to be paid, or there shall
otherwise be paid to the Holders, the principal of, premium, if
any, and interest on the Certificates, at the times and in the
manner stipulated in this Ordinance, then the pledge of taxes
levied and the lien on and pledge of the Pledged Revenues under
this Ordinance and all covenants, agreements, and other
obligations of the City to the Holders shall thereupon cease,
terminate, and be discharged and satisfied.
Certificates, or any principal amount(s) thereof,
shall be deemed to have been paid within the meaning and with
the effect expressed above in this Section when (i) money
sufficient to pay in full such Certificates or the principal
amount(s) thereof at Stated Maturity or to the redemption date
therefor, together wi th a II interest due thereon, sha 11 have
been irrevocably deposited with and held in trust by the Paying
Agent/Registrar, or an authorized escrow agent, or (i i)
Government Securities shall have been irrevocably deposited in
trust with the Paying Agent/Registrar, or an authorized escrow
agent, which Government Securities have been certified by an
independent accounting firm to mature as to principal and
interest in such amounts and at such times as will insure the
availability, without reinvestment, of sufficient money,
together with any money deposited therewith, if any, to pay
305lZ
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when due the principal of and interest on such Certificates, or
the principal amount(s) thereof, on and prior to the Stated
Maturity thereof or (if notice of redemption has been duly
given or waived or if irrevocable arrangements therefor
acceptable to the Paying Agent/Registrar have been made) the
redemption date thereof. The City covenants that no deposit of
money or Government Securities will be made under this Section
and no use made of any such deposit which would cause the
Certificates to be treated as arbitrage bonds within the
meaning of section 148 of the Code (as defined in Section 27
hereof) .
Any money so deposited with the Paying Agent/Registrar,
and all income from Government Securities held in trust by the
Paying Agent/Registrar, or an authorized escrow agent, pursuant
to this Section which is not required for the payment of the
Certificates, or any principal amount(s) thereof, or interest
thereon with respect to which such money has been so deposited
shall be remitted to the City or deposited as directed by the
City. Furthermore, any money held by the Paying Agent/Registrar
for the payment of the principal of and interest on the
Certificates and remaining unclaimed for a period of four (4)
years after the Stated Maturity, or applicable redemption date,
of the Certificates such money was deposited and is held in
trust to pay shall upon the request of the City be remitted to
the City against a written receipt therefor, subject to the
unclaimed property laws of the State of Texas.
SECTION 30: Printed QQinion. The Purchaser's
obligation to accept delivery of the Certificates is subject to
its being furnished a final opinion of Fulbright & Jaworski,
Attorneys at Law, approving certain legal matters as to the
Certificates, said opinion to be dated and delivered as of the
date of initial delivery and payment for such Certificates.
Printing of a true and correct copy of said opinion on the
reverse side of each of said Certificates, with appropriate
certificate pertaining thereto executed by facsimile signature
of the City Secretary of the City is hereby approved and
authorized.
SECTION 3l: CUSIP Numbe.li. CUSIP numbers may be
printed or typed on the definitive Certificates. It is
expressly provided, however, that the presence or absence of
CUSIP numbers on the definitive Certificates shall be of no
significance or effect as regards the legality thereof, and
neither the City nor attorneys approving said Certificates as
to legality are to be held responsible for CUSIP numbers
incorrectly printed or typed on the definitive Certificates.
3051Z
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SECTION 32: Effect of Headi~. The
herein are for convenience only and shall
construction hereof.
Section headings
not affect the
SECTION 33: QLdinance a Contract: Amendments
OutstaDdino Certificates. The City acknowledges that the
covenants and obligations of the City herein contained are a
material inducement to the purchase of the Certificates. This
Ordinance shall constitute a contract with the Holders from
time to time, shall be binding on the City and its successors
and assigns, and shall not be amended or repealed by the City
so long as any Certificate remains Outstanding except as
permi t ted in th s Section. The Ci ty may, wi thout the consent
of or notice to any Holders, from time to time and at any time,
amend this Ordinance in any manner not detrimental to the
interests of the Holders, including the curing of any
ambiguity, inconsistency, or formal defect or omission herein.
In addition, the City may, with the written consent of Holders
holding a majority in aggregate principal amount of the
Certificates then Outstanding affected thereby, amend, add to,
or rescind any of the provisions of this Ordinance; provided
that, without the consent of all Holders of Outstanding
Certificates, no such amendment, addition, or rescission shall
(l) extend the time or times of payment of the principal of and
interest on the Certificates, reduce the principal amount
thereof or the rate of interest thereon, or in any other way
modify the terms of payment of the principal of or interest on
the Certificates, (2) give any preference to any Certificate
over any other Certificate, or (3) reduce the aggregate
principal amount of Certificates required for consent to any
such amendment, addition, or rescission.
SECTION 34: Benef i ts of Ordinance. Nothing in thi s
Ordinance, expressed or implied, is intended or shall be
construed to confer upon any person other than the City, Bond
Counsel, and the Holders, any right, remedy, or claim, legal or
equitable, under or by reason of this Ordinance or any
provision hereof, this Ordinance and all its provisions being
intended to be and being for the sole and exclusive benefit of
the City, Bond Counsel, and the Holders.
SECTION 35: Inconsistent Provisions. All ordinances
and resolutions, or parts thereof, which are in conflict or
inconsistent with any provision of this Ordinance are hereby
repealed to the extent of such conflict, and the provisions of
this Ordinance shall be and remain controlling as to the
matters ordained herein.
SECTION 36: Governina Law. This Ordinance
construed and enforced in accordance with the laws of
of Texas and the united States of America.
sha II 'le
the State
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305lZ
PASSED AND ADOPTED on the 20th day of February, 1990.
CITY OF
ATTEST:
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'i!JA "'-- '-<t..9-....
Ci ty Secret ry .
(CITY SEAL)
305lZ
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..
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"'IR~CI1y,TExAS"
FfR\T erry BA.'\,iCORPORA1l0('" Of TEXAS
.
AU~lin
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AU'>!I11. '1'\ -,"'-hr;
IS \.2 I !-~ 11'\()1I
Trust Division
EXHIBIT A
FULLY REGISTERED
BOND SERVICES
SCHEDULE OF CHARGES
EFFECTIVE JULY I, 1985
Registrar and Paying Agencies
Acceptance Fee
Annual Minimum Charge
Bond/Debenture Registrar
First 100 registrations (minimum per year)
Each registration in excess of 100
Registrations requiring special attention
Reviewing legal transfers (each transaction)
Replacement of lost, stolen or destroved
securities (each transaction)
Bondholder/Debentureholder Account Maintenance
First 100 accounts (minimum per year)
Each account in excess of 100
Conversion of Bonds/Debentures
1/10 of 1% of principal amount converted
Retirement of Bonds/Debentures
For retirement at maturity, or by call as a whole:
First 100 Bonds/Debentures (each)
Next 400 Bonds/Debentures (each)
Excess over 500 Bonds/Debentures (each)
RECEIVED NQV 0 8 1931
None
400.00
or
150.00
1.00
10.00
25.00
150.00
.85
4.80
1.00
.50
-
For retirement by partial call, tender offer or bv purchase:
First 100 Bonds/Debentures (each)
Next 400 Bonds/Debentures (each)
Excess over 500 Bonds/Debentures (each)
4.80
I. 50
1.00
Registered Interest Disbursement
-
Each check
Minimum charge (per interest pavment)
.30
50.00
Destruction of Bonds
Sorting, listing and destroving
(per registered bond)
Minimum charge (per destruction)
.15
25.00
Miscellaneous Services
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Bondholder/Debentureholder list preparation
(per account)
Bondholder/Debentureholder mailing
(per account)
I.R.S. Form 1099 preparation and filing
(per account)
Minimum fee
.04
.05
.10
25.00
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Additional Charges
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The fees shown in this schedule are intended to be minimum fees, and
accordinglv, are subject to increase if the circumstances attending
a particular issue or account so warrant.
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TD707/2
RAUSCHER PIERCE REFSNES, INC.
February 28, 1990
Ms. June G. Krause
City Secretary
City of Schertz
Post Office Drawer I
Schertz, Texas 78154
Re: $850,000
Sold:
CITY OF SCHERTZ, TEXAS
Combination Tax and Limited Pledge Rcvenue
Certificates of Obligation, Series 1990
Tuesday, February 20, 1990
Dear June:
In accordance with the above-referenced Issue, please find cnclosed herewith thc
following:
1. Executcd copies of all documents signed at thc meeting on February 20,
1990. A complete Transcript of Proceedings will be forwarded to you for thc
City's permanent records upon approval of the Attorney Gcncral of the State
of Texas.
2. The original Official Bid Form of each of the bidders. We lcft the
Official Bid Form and Good Faith Check in the amount of $17,000.00 of Knibbe
Financial Group, Inc., Purchaser of the Certificates, with you at the February
20th meeting.
3. Tabulation of Bids.
4. Debt amortization schedules, on an annual and semi-annual basis, for the
City's files.
If you have any questions or require additional information, please do not hesitate
10 contact mc, and with kind personal regards and bcst wishcs, I remain,
Yours truly,
~ :"'''''I''cl'
Vice President
TMNrgj
Enclosures
cc: Mr. Kerry R. Sweatt
City Manager
City of Schertz
1600 NCNB Plaza, 300 Convent. San Antonio, Texas 78205 . (SI2) 225-6611
Member New York Stock Exchange, Inc.
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
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COl1'lTIES OF GUADALUPE,
_OMAL, AND BEXAR
CITY OF SCHERTZ
THE UNDERSIGNED HEREBY CERTIFIES that:
1. On the 20th day of February, 1990, the City
Council (the Council) of the City of Schertz, Texas (the
City) convened in regular session at its regular meeting
place in the City Hall of the City (the Meeting), the dUly
constituted members of the Council being as follows:
Earl W. Sawyer
Harold D. Baldwin
Ken Greenwald
Earl P. Hartzog
Mary A. Marsh
Barbara L. Stanhope
Mayor
Mayor Pro Tern
Councilmember
Councilmember
Councilmember
Councilmember
and all of such persons were present at the Meeting, except the
following: Hr7l?ni-a n RAL.chu'A/ , thus
constituting a quorum. Among other business considered at the
Meeting, the attached ordinance (the Ordinance) entitled:
AN ORDINANCE AUTHORIZING THE ISSUANCE OF "CITY
OF SCHERTZ, TEXAS COMBINATION TAX AND LIMITED
PLEDGE REVENUE CERTIFICATES OF OBLIGATION,
SERIES 1990"; PROVIDING FOR THE PAYMENT OF
SAID CERTIFICATES BY THE LEVY OF AN AD VALOREM
TAX UPON ALL TAXABLE PROPERTY WITHIN THE CITY
AND FURTHER SECURING SAID CERTIFICATES BY A
LIEN ON AND PLEDGE OF THE PLEDGED REVENUES OF
THE SYSTEM; PROVIDING THE TERMS AND CONDITIONS
OF SAID CERTIFICATES AND RESOLVING OTHER
MATTERS INCIDENT AND RELATING TO THE ISSUANCE,
PAYMENT, SECURITY, SALE, AND DELIVERY OF SAID
CERTIFICATES, INCLUDING THE APPROVAL AND
DISTRIBUTION OF AN OFFICIAL STATEMENT;
AUTHORIZING THE EXECUTION OF A PAYING
AGENT/REGISTRAR AGREEMENT; AND DECLARING AN
EMERGENCY
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
Ordinance, a motion was made by Councilmember A1Ar<.'1. 11. /11itr<C::O
that the Ordinance be finally passed and adopted. The motion
was seconded by Councilmember K("/V G-Rl"'l"'lI/wlrL-ci and carried by
the following vote:
q
voted "For"
o
voted "Against"
o
abstained
all as shown in the official Minu;.2S of the Council for the
Meeting.
2. The attached Ordinance is a true and correct copy
of the original on file in the official records of the City;
the duly qualified and acting members of the Council of the
City on the date of the Meeting are those persons shown above,
and, according to the records of my office, each member of the
Council was given actual notice of the time, place, and purpose
of the Meeting and had actual notice that the Ordinance would
be considered; and the Meeting and deliberation of the
aforesaid public business, including the subj ect of the
Ordinance, was posted and given in advance thereof in
compliance with the provisions of Texas Revised Civil Statutes
Annotated Article 6252-l7, as amended.
IN WITNESS WHEREOF, I have signed my name officially
and affixed the seal of the City, this 20th day of February,
1990.
City S cretary,
City of Schertz, Texas
(SEAL)
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3052Z
GENERAL CERTIFICATE
CITY OF SCHERTZ
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THE STATE OF TEXAS
COUNTIES OF GUADALUPE,
COMAL, AND BEXAR
THE UNDERSIGNED HEREBY CERTIFY that:
1. The City Counci I of the City of Schertz, Texas
(the Ci ty) has authorized the j -suance of the "CITY OF
SCHERTZ, TEXAS COMBINATION TAX Ai J LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1990", dated Febraury 1,
1990, in the aggregate principal amount of $850,000 (the
Cert ificates), authorized by an ordinance passed and adopted
on the 20th day of February, 1990 (the Ordinance).
2. The total principal amount of outstanding
indebtedness of the City, payable, in whole or in part, from
taxes levied under and pursuant to Article XI, Section 5 of the
Texas Constitution, including the Certificates, is as follows:
OUTSTANDING TAX OBLIGATIONS ..... $ 2,005,000
THE CERTIFICATES ................ 850,000
TOTAL INDEBTEDNESS ......... $ 2,855,000
A schedule of indebtedness of the City payable, in
whole or in part, from taxes is attached hereto as Exhibit A
and made a part of this certificate for all purposes.
3. A debt service requirement
Certificates is attached hereto as Exhibit B
this certificate for all purposes.
schedule for the
and made a part of
4. The City is a duly incorporated home rule city,
having more than 5,000 inhabitants, operating and existing
under the laws of the State of Texas and the duly adopted Home
Rule Charter of the City, which Charter was last amended
pursuant to a charter amendment election held May 6, 1989.
5.
as follows:
The members of the City Council of the City are
Earl W. Sawyer
Harold D. Baldwin
Ken Greenwald
Earl P. Hartzog
Mary A. Marsh
Barbara L. Stanhope
Mayor
Mayor Pro Tem
Councilmember
Councilmember
Councilmember
Councilmember
6.
and acting
Kerry R. Sweatt is the duly appointed, qualified,
ity Manager of the City.
7. June G. Krause is the duly appointed, qualified,
and acting City Secretary of the City.
8. The assessed value of all taxable property (net
of exemptions) in the City, as shown by the tax rolls for the
year 1989, which have been duly approved and are the latest
official assessment of taxable property in the City, is as
fo llows:
TOTAL ASSESSED TAXABLE VALUES OF
REAL AND PERSONAL PROPERTY... $289,382,870
9. The current rates and charges for water and sewer
services furnished by the City's Waterworks and Sewer System
are as set forth in Exhibit C and made a part of this
certificate for all purposes.
lO. A schedule of the Gross Revenues, Maintenance and
Operating Expenses, and Net Revenues of the System (as shown by
the records of the City) for the last five Fiscal Years is
attached as Exhibit D and made a part of this certificate for
all purposes.
II. All of the meetings held by the City Council
pursuant to which any proceedings were passed, adopted, and
approved in connection with the Certificates were meetings open
to the public for which public notice had been given, all as
required by law and particularly Texas Revised Civil Statutes
Annotated Article 6252-l7, as amended.
12. No Net Revenues, including the Pledged Revenues,
of the System are pledged or encumbered to the payment of any
debt or obligation of the City or the System, except in
connection with the currently outstanding Prior Lien
Obligations, Junior Lien Obligations, and the Certificates.
3053Z
-2-
13. The City is not in default as to any covenant,
condition, or obligation in connection with the currently
outstanding Prior Lien Obligations or Junior Lien Obligations
or the ordinances authorizing their issuance, and each of the
special funds or accounts, if any, established by these
ordinances contains the amount now required to be on deposit in
such fund or account.
14. No pet it ion signed by at least 5% of the
qualified electors of the City has been filed with the Mayor,
the City Secretary, any member of the City Council of the City,
or any other officer of the City protesting the issuance of the
Certificates or requesting a referendum election on the
question of their issuance and sale.
15. The
Lien Obligations,
Revenues, Pledged
System, as used in
as in the Ordinance.
terms Fiscal Year, Gross Revenues, Junior
Maintenance and Operating Expenses, Net
Revenues, Prior Lien Obligations, and
this certificate, have the same meanings
16. This certificate is made for the benefit of the
Attorney General of The State of Texas in connection with his
examination into and the approval of the Certificates.
WITNESS OUR HANDS AND THE SEAL OF THE CITY OF SCHERTZ,
TEXAS, this 20th day of February, 1990.
CITY OF SC~EXAS
~~ MaYO~~
...~) ~
7;: dE, See etHY .., ^-
(CITY SEAL)
3053Z
-3-
EXHIBIT a.
DEBT SERVICE SCHEDULE
3053Z
-5-
EXHIBIL.C.
WATER AND SEWER RATES
WATER RATES
(Monthly Billing)
OLD RATES
Effective 12-18-84
NEW RATES
Effective 3-18-87
Residential and Commercial:
5/8" Service
First 3.000 Gallons $ 4.50 (Min.) $ 6.00 (Min.)
Over 3.000 Gallons .84IM 1.01IM
3/4" Service
First 5.000 Gallons $ 7.00 (Min.) $ 9.31 (Min.)
Over 5.000 Gallons .84IM 1.01/M
1 to Service
First 7.000 Gallons $ 8.00 (Min.) $10.64 (Min.)
Over 7.000 Gallons .84IM 1.01/M
1.112" Service
First 10.000 Gallons $11.00 (Min.) $14.63 (Min.)
Over 10.000 Gallons .84IM 1.01/M
2" Service
First 18.000 Gallons $20.00 (Min.) 526.60 (Min.)
Over 18.000 Gallons .S4IM 1.01/M
4" Service
First 24.000 Gallons $26.50 (Min.) $35.25 (Min.)
Over 24.000 Gallons .S4IM 1.01IM
S" Service
First 32.000 Gallons 542.00 (Min.) $55.86 (Min.)
Over 32.000 Gallons .84IM 1.01IM
Rales Outside the Comorate Umits of the Ci!v: (Effective 8-4-87)
The uniform monthly rate charged to persons living outside the corporate limits of the City shall be
200% of that charged to persons living within the corporate limits of the City.
3053Z
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EXHIBIT C (cont.)
WATER AND SEWER RATES
SEWER RATES
(Monthly Billing)
NEW RATES
Rates Effective November 17.1987:
Sim!le-Familv Residence:
Base Rate
User Charge
$3.25
Each single-family residential user of the sewer system shall be assessed a
monthly rate based on 100% of the user's average water consumption as
computed for each cycle as follows:
Cycle 1 - November 29- February 29
Cycle 2 - December 4-March 4
Cycle 3 - November 22-February 22
Cycle 4 - December 11-March 11
$1.40 shall be assessed for each 1.000 gallons.
Business and Multi-Familv Dwellin2 Units:
Base Rate
User Charge
$4.25 per connection equivalent per month.
$1.43/M
Public Schools:
Base Rate
User Charge
$4.25 per connection equivalent
$1.43/M
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3053Z
EXHIBIT D
OPERATIONS RECORDS
UTIU1Y SYSTEM OPERATING STATEMENT
Fiscal Year Ended
1989 1988 1987 1986 1985
Revenues $1,815,154 $1,902,962 (1) $1,414,895 $1.398.375 $1,281,983
Expenses
Sewer Contract $ 405,509 $ 418,686 $ 327,752 $ 357,772 $ 352,134
Other 639.781 647.697 699.638 581.375 463.671
Total $1,045,290 $1,066,383 $1,027,390 $ 939,147 $ 815,805
Available for
Debt Service $ 769,864 $ 836,579 $ 387,505 $ 459,228 $ 466,178
Annual Debt
Service Reqmt $ 221,286 $ 221,198 $ 167,486 $ 133,773 $ 136,748
Coverage on
Revenue Bonds 3.48X 3.78X 2.31X 3.43X 3.41X
CUstomer Count
Water 3,856 3,692 3,498 3,208 2,877
Sewer 2,904 2,662 2,639 2,333 2,231
(1) Includes $312,807 recovery from lawsuit.
-8-
3053Z
SIGNATURE AND NO-LITIGATION CERTIFICATE
COUNTIES OF GUADALUPE,
COMAL, AND BEXAR
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THE STATE OF TEXAS
CITY OF SCHERTZ
THE UNDERSIGNED HEREBY CERTIFY that:
1. This certificate is executed
reference to the "CITY OF SCHERTZ, TEXAS
LIMITED PLEDGE REVENUE CERTIFICATES OF
1990", dated February l, 1990, in the
amount of $850,000 (the Certificates).
and delivered with
COMBINATION TAX AND
OBLIGATION, SERIES
aggregate principal
2. The Certificates have been duly and officially
executed by the undersigned Mayor and City Secretary with their
manual or facsimile signatures in the manner appearing hereon,
and the undersigned Mayor and City Secretary hereby adopt and
ratify their respective signatures in the manner appearing on
each of the Certificates in manual or facsimile form, as the
case may be, as their true, genuine, and official signatures.
3. On the date of such execution and on
hereof, the undersigned were and are the duly
qualified, and acting officers indicated therein and
are authorized to execute the same.
the date
chosen,
were and
4. The legally adopted, proper, and official
corporate seal of the City of Schertz, Texas is impressed,
imprinted, or lithographed on all of the Certificates and is
impressed on this certificate.
5. No litigation of any nature is now pending or, to
our knowledge, threatened restraining or enjoining the issuance
and delivery of the Certificates or the levy and collection of
taxes or pledge of revenues to pay the principal of and
interest on the Certificates, or in any manner questioning the
proceedings and authority under which the same is made or
affecting the validity of the Certificates thereunder; neither
the corporate existence or boundaries of the City nor the title
of the present officers to their respective offices is being
contested; and no authority or proceedings for the issuance of
the Certificates have been repealed, revoked, or rescinded.
EXECUTED AND DELIVERED this
(CITY SEAL)
OFFICIAL TITLE
Mayor,
City of Schertz, Texas
L..,.
-'/
/
,/
City Secretary,
City of Schertz, Texas
The signatures of the officers subscribed above are
hereby certified to be true and genuine.
gg.~I\A Guam"",,",
JgiERTZ BANK & TRUST
Schertz, Texas
BVi. (B~..-
ByQ~___. ~!~
Auth rized Officer
Executive Secretary - 2(22(90
(BANK SEAL)
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3054Z
CERTIFICATE AS TO OFFICIAL STATEMENT
THE STATE OF TEXAS
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COUNTIES OF GUADALUPE,
COMAL, AND BEXAR
CITY OF SCHERTZ
THE UNDERSIGNED HEREBY CERTIFY to the best of our
knowledge and belief that:
1. The descriptions and statements of or pertaining
to the City of Schertz, Texas (the Ci ty) contained in its
Official Statement dated January 16, 1990, and any addenda,
supplement, or amendment thereto relating to the "CITY OF
SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1990", dated February 1,
1990, in the aggregate principal amount of $850,000 (the
Certificates, on the date of such Official Statement, on the
late of sale and the acceptance of the best bid for the
Certificates, and on the date of delivery thereof, were and are
true and correct in all material respects.
2. Insofar as the City and its affairs, including
its financial affairs, are concerned, such Official Statement
did not and does not contain an untrue statement of a material
. fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in the
light of the circumstances under which they were made, not
misleading.
3. Insofar as the descriptions and statements,
including financial data, of or pertaining to entities, other
than the City, and their activities contained in such Official
Statement are concerned, such statements and data have been
obtained from sources which the City believes to be reliable,
and the City has no reason to believe that they are untrue in
any material respect.
4. There has been no material adverse change in the
financial condition of the City since September 30, 1989, the
date of the last financial statements of the City appearing in
the Official Statement.
WITNESS OUR HANDS AND THE SEAL OF THE CITY OF SCHERTZ,
TEXAS, on this
;;:;:~~
A~ES:r: . /
.}.I;AO ~""Q
~ty Se~retary
(CITY SEAL)
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3055Z
PAYING AGENT/REGISTRAR AGREEMENT
THIS PAYING AGENT/REGISTRAR AGREEMENT entered into as
of February 20, 1990 (this Agreement) is between the City of
Schertz, Texas (the Issuer) and First City, Texas--Austin
N.A., Austin, Texas, a national banking association duly
organized and existing under the laws of the united States of
America (the Bank).
RECITALS OF THE ISSUER
The Issuer has duly authorized and provided for the
issuance of its "CITY OF SCHERTZ, TEXAS COMBINATION TAX AND
LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 1990"
(the Secur it i es) in the agg reg ate principa 1 amount of
$850,000 to be issued as registered securities without coupons;
All things necessary to make the Securities the valid
obligations of the Issuer, in accordance with their terms, will
be taken upon the issuance and delivery thereof;
The Issuer is desirous that the Bank act as the Paying
Agent of the Issuer in paying the principal, premium (if any)
and interest on the Securities, in accordance with the terms
thereof, and that the Bank act as Registrar for the Securities;
The Issuer has duly authorized the execution and
delivery of this Agreement; and all things necessary to make
this Agreement the valid agreement of the Issuer, in accordance
with its terms, have been done.
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
APPOINTMENT OF BANK AS
PAYING AGENT AND REGISTRAR
Section l.Ol. Appointment.
The Issuer hereby appoints the Bank to act as Paying
Agent with respect to the Securities, in order to pay, when
due, the principal, premium (if any), and interest on all or
any of the Securities to the Holders of the Securities.
The Issuer hereby appoints the Bank as Registrar with
respect to the Securities.
The Bank hereoy accepts its appointment, and agrees to
act as, the Paying Agent and the Registrar.
Section 1.02. Compensation.
As compensation for the Bank's services as Paying
Agent/Registrar, the Issuer hereby agrees to pay the Bank the
fees and amounts set forth in Annex A hereto for the first year
of this Agreement and thereafter the fees and amounts set forth
in the Bank's current fee schedule then in effect for services
as Paying Agent/Registrar for municipalities, which shall be
supplied the Issuer on or before ninety (90) days prior to
the close of the Fiscal Year of the Issuer and which shall be
effective upon the first day of the following Fiscal Year.
In addition, the Issuer agrees to reimburse the Bank
upon its request for all reasonable expenses, disbursements,
and advances incurred or made by the Bank in accordance with
any of the provisions hereof (including the reasonable
compensation and the expenses and disbursements of its agents
and counsel).
ARTICLE TWO
DEFINITIONS
Section 2.0l. Definitions.
For all purposes of this Agreement, except as
otherwise expressly provided or unless the context otherwise
requires, the following terms, whenever the same appears herein
without qualifying language, are defined to mean as follows:
Acceleration Date of any Security means the
date on and after which the principal or any or all
installments of interest, or both, are due and payable
on any Security which has become accelerated pursuant
to the terms of the Security.
Bank Office means the principal corporate trust
office of the Bank set forth on the signature page of
this agreement. The Bank will notify the Issuer, in
writing, of any change in location of the Bank Office.
Bond
ordinance
to which
Secretary
delivered
Resolut ion means the resolution, order, or
of the governing body of the Issuer pursuant
the Securities are issued, certified by the
or any other officer of the Issuer, and
to the Bank.
Fiscal Year means the fiscal year of the Issuer.
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3056Z
3056Z
Holder and Security Holder
Person in whose name a Security is
Security Register.
each means a
registered in the
Issuer Request and Issuer Order means
written request or order signed in the name of
Issuer by the Mayor or the City Secretary of the
Council of the Issuer and delivered to the Bank.
a
the
City
Legal Hal iday means a day on which the Bank is
required or authorized to be closed.
Person means any individual, corporation,
partnership, joint venture, association, joint stock
company, trust, unincorporated organization or
government or any agency or political subdivision of a
government.
Redemption Date
Bond to be redeemed
redemption pursuant
Resolution.
when used
means the
to the
with
date
terms
respect to
fixed for
of the
any
such
Bond
Responsible Officer when used with respect to
the Bank means the Chairman or vice-Chairman of the
Board of Directors, the Chairman or vice-Chairman of
the Executive Committee of the Board of Directors, the
President, any vice President, the Secretary, any
Assistant Secretary, the Treasurer, any Assistant
Treasurer, the Cashier, any Assistant Cashier, any
Trust Officer or Assistant Trust Officer, or any other
officer of the Bank customarily performing functions
similar to those performed by any of the above
designated officers and also means, with respect to a
particular corporate trust matter, any other officer
to whom such matter is referred because of his
knowledge of and familiarity with the particular
subject.
Security Register means
by the Bank on behalf of the
registration of Securities
Securities.
a register maintained
Issuer providing for the
and of transfers of
Stated Maturi ty means the date specified in the
Bond Resolution as the fixed date on which the
principal of a Security is scheduled to be due and
payable.
-3-
Section 2.02. Qther Definitions.
The terms "Bank",
meanings assigned to them
Agreement or in the Recitals
"Issuer", and "Security"
in the opening paragraph
of the Issuer.
have
of
the
this
The term "Paying
in the performance of
Agreement.
Agent/Registrar"
the duties and
refers to
functions
the Bank
of this
ARTICLE THREE
PAYING AGENT
Section 3.01. ~t~s of Payina Aaent.
As Paying Agent, the Bank shall, provided adequate
collected funds have been provided to it for such purpose by
or on behalf of the Issuer, pay on behalf of the Issuer the
principal of each Security at its Stated Maturity, Redemption
Date, if any, or Acceleration Date, to the Holder upon
surrender of the Security to the Bank at the Bank Office.
As Paying Agent, the Bank shall, provided adequate
collected funds have been provided to it for such purpose by or
on behalf of the Issuer, pay on behalf of the Issuer the
interest on each Security when due, by computing the amount of
interest to be paid each Holder, preparing the checks and
mailing the checks on the payment date, to the Holders of the
Securities on the Record Date, addressed to their address
appearing on the Security Register.
Section 3.02. Payment Dat~.
The Issuer hereby instructs the Bank
principal of and interest on the Securities
specified in the Bond Resolution.
to pay
at the
the
dates
ARTICLE FOUR
REGISTRAR
Section 4.0l. Transfer and Exchanae.
The Issuer shall keep at the Bank Office a register
(the Securi ty Register) in which, subject to such reasonable
wri tten regulations as the Issuer may prescribe (which
regulations shall be furnished the Bank herewith or subsequent
hereto by Issuer Order), the Issuer shall provide for the
registration of the Securities and for transfers of
Securities. The Bank is hereby appointed Registrar for the
purpose of registering Securities and transfers of Securities
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3056Z
as herein provided. The Bank agrees to maintain the Security
Register while it is Registrar.
Every Security surrendered for transfer or exchange
shall be duly endorsed or be accompanied by a written
instrument of transfer, the signature on which has been
guaranteed by an officer of a federal or state bank or a member
of the National Association of Securities Dealers, in form
satisfactory to the Bank, duly executed by the Holder thereof,
or his agent, duly authorized in writing.
Registrar may request any supporting documentation it
feels necessary to effect are-registration.
Section 4.02. Form of Security Reaister.
The Bank as Registrar will maintain the records of the
Security Register in accordance with the Bank's general
practices and procedures in effect from time to time. The Bank
shall not be obligated to maintain such Register in any form
other than those which the Bank has currently available and
currently utilizes at the time.
The
form or in
written form
Securi ties Register may be
any other form capable of
within a reasonable time.
maintained in written
being converted into
Section 4.03. List of Security Holders.
The Bank will provide the Issuer at any time requested
by the Issuer, upon payment of any required fee, a copy of the
information contained in the Security Register. The Issuer may
also inspect the information in the Security Register at any
time the Bank is customarily open for business, provided that
reasonable time is allowed the Bank to provide an up-to-date
listing or to convert the information into written form.
The Bank will not release or disclose the content of
the Security Register to any person other than to, or at the
written request of, an authorized officer or employee of the
Issuer, except upon receipt of a subpoena, court order, or as
required by law. Upon receipt of a subpoena or court order the
Bank will notify the Issuer so that the Issuer may contest the
subpoena or court order.
Section 4.04. Return of Cancelled Certificates.
The Bank wi II ,
determines, surrender to
or in exchange for which
which have been paid.
at such reasonable intervals as it
the Issuer Securities in lieu of which
other Securities have been issued or
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Section 4.05. Transaction Information to Issuer.
The Bank will, within a reasonable time after receipt
of written request from the Issuer, furnish the Issuer
information as to the Securities it has paid pursuant to
Section 3.01 and Securities it has delivered upon the transfer
or exchange of any Securities pursuant to Section 4.01.
ARTICLE FIVE
THE BANK
Section 5.0l. Duties of Bank
The Bank
herein and agrees
thereof.
undertakes to perform the duties set forth
to use reasonable care in the performance
Section 5.02. Reliance on Documents. Etc.
of the
therein,
(a) The Bank may conclusively rely, as to
statements and correctness of the opinions
on certificates or opinions furnished to the
the truth
expressed
Bank.
(b) The Bank shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it
shall be proved that the Bank was negligent in ascertaining the
pertinent facts.
(c) No provisions of this Agreement shall require the
Bank to expend or risk its own funds or otherwise incur any
financial liability for performance of any of its duties
hereunder, or in the exercise of any of its rights or powers,
if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity satisfactory to
it against such risks or liability is not assured to it.
(d) The Bank may rely and shall be protected in
acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, note, security, or
other paper or document believed by it to be genuine and to
have been signed or presented by the proper party or parties.
without limiting the generality of the foregoing statement, the
Bank need not examine the ownership of any Securities but is
protected in acting upon receipt of Securities containing an
endorsement or instruction of transfer or power of transfer
which appears on its face to be signed by the Holder or an
agent of the Holder. The Bank shall not be bound to make any
investigation into the facts or matters stated in a resolution,
certificate, statement, instrument, opinion, report, notice,
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3056Z
request, direction, consent, order, bond, note, security or
other paper or document supplied by Issuer.
(e) The Bank may consult with counsel, and the
written advice of such counselor any opinion of counsel shall
be full and complete authorization and protection with respect
to any action taken, suffered or omitted by it hereunder in
good faith and in reliance thereon.
(f) The
and perform any
through agents or
Bank may exercise any of the powers hereunder
duties hereunder either directly or by or
attorneys of the Bank.
Section 5.03. Recitals of Issuer.
The recitals contained herein and in the Securities
shall be taken as the statements of the Issuer, and the Bank
assumes no responsibility for their correctness.
The Bank shall in no event be liable to the Issuer,
any Holder or Holders of any Security, or any other Person for
any amount due on any Security from its own funds.
Section 5.04. May Hold Securities.
The Bank, in its individual or any other capacity, may
become the owner or pledgee of Securities and may otherwise
deal with the Issuer with the same rights it would have if it
were not the paying Agent/Registrar or any other agent.
Section 5.05. Money Held by Bank.
A fiduciary account shall at all times be kept and
maintained by the Bank for the receipt, safekeeping, and
disbursement of money received from the Issuer hereunder for
the payment of the Securities, and money deposited to the
credit of such account until paid to the Holders of the
Securities shall be continuously collateralized by securities
or obligations which qualify and are eligible under the laws of
the State of Texas to secure and be pledged as collateral for
fiduciary accounts to the extent such money is not insured by
the Federal Deposit Insurance Corporation.
The Bank shall be under no liability for interest on
any money received by it hereunder.
Any money deposited with the Bank for the payment of
the principal, premium (if any), or interest on any Security
and remaining unclaimed for four years after final maturity of
the Security has become due and payable will be held by the
Bank and di sposed of only in accordance wi th Ti t le 6 of the
Proper Code (Unclaimed Property).
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3056Z
The Bank will comply with the reporting provisions of
Chapter 74 of the Property Code wi th respect to property that
is presumed abandoned under Chapter 72 or Chapter 75 of the
Property Code or inactive under Chapter 73 of the Property Code.
Section 5.06. Indemnification.
The Issuer agrees, to the extent it legally may, to
indemnify the Bank for, and hold it harmless against, any loss,
liability, or expense incurred without negligence or bad faith
on its part arising out of or in connection with its acceptance
or administration of its duties hereunder, including the cost
and expense (including its counsel fees) of defending itself
against any claim or liability in connection with the exercise
or performance of any of its powers or duties under this
Agreement.
Section 5.07. Interpleader.
The Issuer and the Bank agree that the Bank may seek
adjudication of any adverse claim, demands or controversy over
its persons as well as funds on deposit, in either the District
Court of Guadalupe County, Texas, or the united States Federal
District Court for the Western District of Texas, waive
personal service of any process, and agree that service of
process by certified or registered mail, return receipt
requested, to the address set forth in Section 6.03 of this
Agreement shall constitute adequate service. The Issuer and
the Bank further ag ree that the Bank has the right to file a
Bill of Interpleader in any court of competent jurisdiction to
determine the rights of any Person claiming interest herein.
Section 5.08. Depositorv Trust Comoany.
It is hereby represented and warranted that, in the
event the Securities are otherwise qualified and accepted for
"Depository Trust Company" services or equivalent depository
trust services by other organizations, the Bank has the
capability and, to the extent within its control, will comply
with the "Operational Arrangements", effective August l, 1987,
which establishes requirements for securities to be eligible
for the timeliness of payments and funds availability, transfer
turnaround time, and notification of redemptions and calls.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.0l. Amendment.
This Agreement may be amended only by an agreement in
writing signed by both of the parties hereof.
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Section 6.02. Assianment.
This Agreement may not be assigned by either party
without the prior written consent of the other.
Section 6.03. Notices.
Any request, demand, authorization, direction, notice,
consent, waiver or other document provided or permitted hereby
to be given or furnished to the Issuer or the Bank shall be
mailed or delivered to the Issuer or the Bank, respectively, at
the addresses shown on the signature page of this Agreement.
Section 6.04. Effect of Headinas.
The Article and Section headings herein are for
convenience only and shall not affect the construction hereof.
Section 6.05. Successors and Assians.
All covenants and agreements
shall bind its successors and assigns,
not.
herein by the Issuer
whether so expressed or
Section 6.06. Separability.
In case any provision herein, or application thereof,
shall be invalid, illegal, or unenforceable, the validity,
legality, and enforceability of the remaining provisions or
applications shall not in any way be affected or impaired
thereby.
Section 6.07. Benefits of Aareement.
Nothing herein, express or implied, shall give to any
Person, other than the parties hereto and their successors
hereunder, any benefit or any legal or equitable right, remedy,
or claim hereunder.
Section 6.08. Entire Aareement.
This Agreement and the Bond Resolution constitute
entire agreement between the parties hereto relative to
Bank acting as Paying Agent/Registrar for the Securities,
if any conflict exists between this Agreement and the
Resolution, the Bond Resolution shall govern.
the
the
and
Bond
3056Z
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Section 6.09. Counterparts.
This Agreement may be
counterparts, each of which shall
of which shall constitute one and
executed in any number of
be deemed an original and all
the same Agreement.
Section 6.10. Termination.
This Agreement will terminate on the date of final
payment by the Bank issuing its checks for the final payment of
principal of and interest on the Securities.
This Agreement may be earlier terminated upon 60 days
wr i t ten not ice by ei ther party; provided, however, that thi s
Agreement may not be terminated (i) by the Bank until a
successor Paying Agent/Registrar that is a national or state
banking institution and a corporation or association organized
and existing under tne laws of the United States of America or
of any state which possesses trust powers and is subject to
supervision or examination by a federal or state regulatory
agency has been appointed by the Issuer and has accepted such
appointment, or (ii) at any time during which such termination
might, in the judgment of the Issuer, disrupt, delay, or
otherwise adversely affect the payment of the principal,
premium, if any, or interest on the Securities. Prior to
terminating this Agreement, the Issuer may reasonably require
the Bank to show that such termination will not occur during a
period described in (ii) above.
The provisions of Section l.02 and of
shall survive and remain in full force and effect
termination of this Agreement.
Art ic Ie Five
following the
Section 6.ll. Governina Law.
This Agreement shall be construed in accordance with
and governed by the laws of the State of Texas.
*
*
*
3056Z
-lO-
IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the day and year first above written.
[SEAL]
[SEAL]
Attest:
Title:
Annex A - Fee Schedule
3056Z
BY
Name:
Ti tle:
Address:
Earl W. Saw
Mayor
1400 Schertz Parkway
Schertz, Texas 78154
FIRST CITY, TEXAS--AUSTIN, N.A.,
Austin, Texas
BY
Tit Ie:
Address:
-ll-
CERTIFICATE AS TO TAX EXEMPTION
The undersigned, being the duly chosen and qualified
Mayor and City Secretary of the City of Schertz, Texas (the
Ci ty), hereby certify with respect to the CITY OF SCHERTZ,
TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES
OF OBLIGATION, SERIES 1990 in the aggregate principal amount of
$850,000 (the Certificates), as follows:
A. General.
1. For al: purposes of this certificate, unless
otherwise defined, all defined terms herein shall have the same
meaning given to them in the Ordinance (defined below).
2. Pursuant to state law and the Ordinance
authorizing the issuance of the Certificates, we, along with
other officers of the City, are charged with the responsibility
for issuing the Certificates.
3. This certificate is made pursuant to Treasury
Regulations Sections l.l03-l3, l.l03-l4, and l.103-l5 (the
Regulations), Temporary Treasury Regulations Sections l.148,
1.149 and 1.150 (the Temporary Regulations) and sections l03
and 141-l50 of the Internal Revenue Code of 1986, as amended to
the date hereof (the Code).
4. This certificate is based on the facts and
estimates described herein in existence on the Closing Date,
and, on the basis of such facts and estimates, the City expects
that the future events described herein will occur. The City
covenants not to take any intentional acts or actions after the
Closing Date of the Certificates to earn a Yield upon the
investment of the proceeds materially higher than the Yield on
the Certificates, except as provided herein.
5. The City has never been disqualified by the
Commissioner of Internal Revenue from certifying an issue of
its obligations pursuant to Section 1.l03-13(a)(2)(iv) of the
Regulations, has never been listed in a notice of
disqualification in the Internal Revenue Bulletin, and has
never been advised that such a disqualification is contemplated.
6 .
74-1469344.
The City's employer identification number is
B. Purpose and Size.
l. The Certificates are being issued pursuant to an
Ordinance of the City adopted on February 20, 1990 (the
Ordinance) for the purpose of providing funds for the payment
of contractual obligations of the City to be incurred for
making permanent public improvements and for other public
purposes, including (1) purchase of rights-of-way for street
improvements, (2) purchase of land for an animal control
facility, (3) construction of public works, including
construction of a building or buildings and acquisition of
equipment therefor for an animal control facility, (4) purchase
of land and an existing building for a public works service
center facility and renovation and improvement thereof and
acquisition of equipment therefor, or purchase of land and
construction of a building and acquisition of equipment for a
public works service center facility, (5) purchase of police
vehicles and communications equipment, and (6) payment for
professional services (the Project).
2. The City will, at all times prior to the last
Stated Maturity of the Certificates,
(a) exclusively own, operate, and possess all
property acquired, constructed, or improved with Gross
Proceeds and not use or permit the use of any property
acquired, constructed, or improved with Gross Proceeds
in any activity carried on by any person or entity
(other than a state or local government), unless
such use is merely as a member of the general public,
or
(b) not directly or indirectly impose or accept
any charge or other payment for use of Gross Proceeds
or any property acquired, constructed. or improved
with Gross Proceeds, other than a charge or other
payment merely as a member of the general public or
interest earned on Investments acquired with Gross
Proceeds pending application for their intended
purposes, either or both.
3. The Ci ty wi II not use Gross Proceeds to make or
finance loans to any person or entity other than a state or
local government. For purposes of the foregoing covenant,
Gross Proceeds are considered to be "loaned" to a person or
entity if (1) property acquired, constructed, or improved with
Gross Proceeds is sold or leased to such person or entity in a
transaction which creates a debt for federal income tax
purposes, (2) capaci ty in or service f rom such property is
committed to such person or entity under a take-or-pay, output,
3058Z
-2-
or similar contract or arrangement, or (3) indirect benefits,
or burdens and benefits of ownership, of Gross Proceeds or any
property acquired, constructed, or improved with Gross Proceeds
are otherwise transferred in a transaction which is the
economic equivalent of a loan.
4. The amounts received from the sale of the
Certificates, when added to the amount expected to be received
from the investment thereof, do not exceed the amounts required
to pay the costs of the Project and of issuing the Certificates.
5. No receipt from the sale of the Certificates or
amounts received from the investment thereof will be used to
pay the principal of or interest on any currently outstanding
debt obligation of the City similar to the Certificates other
than the Certificates.
C. Source and Disbursement of Funds.
1.
The Certificates are being issued and delivered
(the Purchaser), and
received as a ~esult of the sale of the
amount equal to $ , which represents a
of par, plus a premium of $ or less a
plus accrued interest in the amount of
to
the City has
Certificates an
purchase price
discount of $
$
2. The amount representing accrued interest is being
deposited on the date hereof in the Special Combination Tax and
Limited Pledge Revenue Certificates of Obligation, Series 1990,
Interest and Sinking Fund (the Interest and Sinking Fund)
created by the Ordinance and wi 11 be used to pay the first
payment of interest to become due on the Certificates on
February l, 1991.
3. Of the remaining proceeds of the Certificates
received by the City from the Purchaser, approximately
$ wi II be used to pay the costs of issuance (other
than underwriter' s spread) relating to the Certificates, and
$ will be deposited in a separate checking account of
the City (the Construction Account or Fund) to pay costs of
the Project. The City estimates that it will receive
$ in income or profit from the investment of the
amounts deposited to the Construction Fund pending the
disbursement of such amounts for the governmental purposes for
which the Certificates are being issued. Such amount will be
used to pay additional costs of the Project or deposited in the
Interest and Sinking Fund to pay principal of or interest on
the Certificates within one year from the date of receipt.
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D. Temporary periods and Time for Expenditures.
1. within six months from the date hereof, the City
will have incurred binding obligations or commitments in the
amount of at least $100,000.00 for the Project by entering into
contracts for construction, architectural services, engineering
services, land acquisition, site development. construction
materials, or the purchase of equipment.
2. After entering into said contracts, we, k on the
construction or acquisition of the Project will proceed with
due diligence to completion, which is expected to occur, and
the proceeds from the sale of the Certificates and investment
earnings thereon are expected to be expended by
invest
regard
3.
Gross
as to
Based on the foregoing, the City expects to
Proceeds, held in the Construction Fund, without
restriction of Yield until
-,-.
E. Interest and Sinkina Fund.
l. The Certificates are payable from the Pledged
Revenues of the System and from an ad valorem tax levied,
within the limits prescribed by law, upon all taxable property
located within the jurisdiction of the City. All revenues and
taxes levied and collected for and on account of the
Certificates are to be deposited into the Interest and Sinking
Fund.
2. Except for that portion of the Interest and
Sinking Fund, if any, consisting of deposits made to defease in
whole or in part the Certificates, the Interest and Sinking
Fund (i) was created primarily to achieve a proper matching of
revenues and debt seryice with respect to the Certificates
within each one year period, beginning on the Closing Date and
ending on each anniversary of the Closing Date thereafter until
the Certif icates are no longer Outstanding and (i i) wi II be
depleted at least once a year except possibly for a carry-over
amount not greater than the larger of one year's income from
the investment thereof or one-twelfth of the annual debt
service requirements on the Certificates. All amounts
deposited to the Interest and Sinking Fund will be spent within
13 months of deposit, and all amounts received from investment
of such fund will be deposited therein and will be expended
within twelve months of receipt. Any amounts held in the
Interest and Sinking Fund during such periods are expected to
be invested by the City without regard as to restriction of
Yield. Any amounts held in the Interest and Sinking Fund in
excess of such periods will be invested at a Yield not to
exceed the Yield on the Certificates.
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3058Z
3. All money deposited in the Interest and Sinking
Fund will be used solely to pay the principal of, and interest
on, the Certificates as the same becomes due and payable, and
there will be no other funds that will be so used or pledged or
otherwise restricted so as to be available with reasonable
certainty to be so used.
F. Yield. Rebate and Miscellaneous.
1.
calculated
Certificate
The Yield on the Certificates is
on the basis of the information provided
of Underwriter attached hereto as Exhibit A.
!l,
0,
In
the
2. The City has covenanted to account for
Proceeds of the Certificates separately and apart
other funds of the City from the date hereof.
the Gross
from all
is
3. The weighted average maturity of the Certificates
years.
4 . The Ci ty
obligations within 3l
Certificates.
has not issued
days of the
nor will
Closing
it issue
Date of
any
the
5. The City is a governmental unit with general
taxing powers, the Certificates are not private activity bonds,
95% or more of the Net Proceeds of such Certificates are to be
used for local governmental activities of the City (or of a
governmental unit the jurisdiction of which is entirely within
the jurisdiction of the City), the aggregate face amount of all
tax-exempt obligations (other than private activity bonds)
issued by the City (and all entities with which the City would
be treated as a single issuer under section 148(f)(4)(C) of the
Code thereof) during the calendar year 1990 is not reasonably
expected to exceed $5,000,000.00, and the City will not spend
the Gross Proceeds of the Certificates so as to cause the
Certificates to become private activity bonds. Accordingly,
the City does not expect to be required to rebate to the United
States Treasury any "arbitrage" profits resulting from the
investment of proceeds of the Certificates.
6. In the Ordinance, the
Certificates as qualified tax-exempt
in section 265(b) of the Code.
City has designated the
obligations, as defined
7. The City does not
Certificates will be used in
Certificates to be arbitrage
section 148 of the Code.
expect that the proceeds of
a manner that would cause
bonds within the meaning
the
the
of
3058Z
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3058Z
Executed and delivered
-6-
City Secretary
OFFICIAL BID FORM
February 20. 1990
Mayor and City Council
City of Schertz (the "City")
1400 Live Oak Road
Schertz. Texas 78154
Dear Ladies and Gentlemen:
Subject to the terms of your Official Notice of Sale and Official Statement dated January 16, 1990 which
terms are incorporated by reference to this proposal, we hereby submit the following bid for $850,000 CITY
OF SCHERTZ, TEXAS COMBlNA TION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES
OF OBLIGATION. SERIES 1990. dated February 1, 1990 (the "Certificates").
We will pay you the par value thereof, plus accrued
plus a cash premium of $ - 0-
mterest per annum as follows:
interest from their date to the date of delivery to us,
for Certificates stated to mature February 1 and bearing
February 1, 1992 8.7') % February 1, 1997
February 1, 1993 8 7') % February 1. 1998
February 1, 1994 8 7') % February 1, 1999
February 1. 1995 R 7, % February 1,2000
February 1. 1996 R 7, % February 1, 2001
R.7,) % February 1, 2002 7.30 %
8 'i0 % February 1, 2003 7.40 %
7 :10 % February 1. 2004 7.40 %
7 7, % February 1, 2005 6 7, %
7 7, %
Interest cost. in accordance with the above bid, is:
Gross Interest Cost:
Less: Premium
NET INTEREST COST
EFFECnVE INTEREST RATE
$ 623.897.50
$ -0-
$ 623.897.50
7.494264
%
The Initial Certificate shall be registered in the name of Rall;(h~r p~pj{eei,pfsnp~. Tne.
(syndicate manager). We wilr provide First City, Texas-- ustm. ... ustm, .exas, the Paymg
Agent/Registrar, on forms to be provided by the Paying Agent/Registrar. with our registration instructIons
at least five business days prior to the date set for initial delivery.
Cashier's Check of the First Citv, Texas - Austin Bank, Austin , Texas,
in the amount of $17.000.00. whIch represents our Good I-mth DepOSIt (ll.oatbaKMlKIDer""",, or (has been
made available to you prior to the opening of this Bid), and is submitted in accordance with the terms as
set forth in the Official Notice of Sale, said check is to be applied to the purchase price of the
Certificates.
We agree to accept delivery of and make payment for the Certificates in immediatel, available funds at the
IJfincipal corporate trust office, First City, Texas--Austin. N.A.. Austin, I exas, not ater than 10:00 A.M.,
San Antonio time, on March 20, 1990, or thereafter on the date the Certificates are tendered for delivery,
pursuant to the terms set forth in the Official Notice of Sale.
The undersigned agrees to complete, execute, and deliver to the Ciry, by the date of initial delivery of the
Certificates, a certIficate relating to the "issue price" of the CertIficates in the form and to the effect
attached to or accompanying the Official Notice of Sale. with such changes thereto as may be acceptable to
the City.
Respectfully submitted.
RAUSCHER PIERCE REFSNES. INC.
FIRST SOUTHWEST COMPANY
By ~e~ve' ./
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Schertz, Texas, subject to and
in accordance with the Official Notice of Sale and Officral Bid Form, this the 20th day of February, 1990.
Mayor, CIty at Schertz, Texas
A 1TEST:
CIty Secretary, CIty at Schertz, lexas
Return Good Faith Check is hereby acknowledged:
Firm:
By:
CERTIFICATE YEARS
$850,000
CITY OF SCHERTZ, TEXAS
(Guadalupe, Cornal & Bexar Counties)
COMBINATION TAX AND
LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION
SERIES 1990
Dated: February 1, 1990
Due: February 1
Year
Amount
Certificate
Years
Certificate Years
Cumulative
Certificate Years
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
. $ 35,000
35,000
40,000
45,000
45,000
50,000
55,000
60,000
65,000
65,000
85,000
90.000
90.000
90,000
70
105
160
225
270
350
440
540
650
715
1,020
1.170
1,260
1,350
70
175
335
560
830
1,180
1,620
2.160
2,810
3,525
4.545
5,715
6,975
8,325
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
AVERAGE LIFE - 9.794 YEARS
OFFICIAL BID FORM
February 20, 1990
Mayor and City Council
City of Schertz (the "City")
1400 Live Oak Road
Schertz. Texas 78154
Dear Ladies and Gentlemen:
Subject to the terms of your Official Notice of Sale and Official Statement dated January 16, 1990 which
terms are incorporated by reference to this proposal, we hereby submit the following bid for $850,000 CITY
OF SCHERTZ, TEXAS COMBlNATlON TAX AND LIMITED PLEDGE REVENUE CERTlFICATES
OF OBLIGATlON, SERIES 1990. dated February 1, 1990 (the "Certificates").
We will pay you the par value thereof, plus accrued
plus a cash premium of $ 0
mterest per annum as follows:
interest from their date to the date of delivery to us.
for Certificates stated to mature February 1 and bearing
February 1, 1992 9.125 % February 1, 1997
February 1, 1993 9.125 % February 1, 1998
February 1. 1994 9.125 % February 1, 1999
February 1, 1995 9.125 % February 1, 2000
February 1. 1996 8.375 % February 1, 2001
Interest cost, in accordance with the above bid. is:
Gross Interest Cost:
Less: Premium
NET INTEREST COST
EFFECflVE INTEREST RATE
7.15 % February 1. 2002 7.45 %
7.20 % February 1. 2003 7.50 %
7.25 % February 1. 2004 7.50 %
7.35 % February 1, 2005 7.50 %
7.40 %
$
$
$
629,742.50
-0-
629,742.50
7.56447
%
The Initial Certificate shall be registered in the name of SouthWest Securities, Inc.
(syndicate manager). We will provide First City, Texas--Austm, NA., Austm, rexas, the Paymg
Agent/Registrar, on forms to be provided by the Paying Agent/Registrar. with our registration instructIOns
at least five business days prior to the date set for initial delivery.
<:::ashier's Check of the First City National Bank. Austin , Texas,
m the amount of $17,000.00, which represents our Good ralth DepOSIt (IS attaefiell l1.~r~tQJ or (has been
made available to you prior to the opening of this Bid), and is submitted in accordance with the terms as
set forth in the OffiCIal Notice of Sale, said check is to be applied to the purchase price of the
Certificates.
We agree to accept delivery of and make payment for the Certificates in immediatel, available funds at the
principal corporate trust office, First City, Texas--Austin, NA., Austin, lexas, not ater than 10:00 A.M.,
San Antonio time, on March 20, 1990, or thereafter on the date the Certificates are tendered for delivery,
pursuant to the terms set forth in the Official Notice of Sale.
The undersigned agrees to complete, execute, and deliver to the CitY., by the date of initial delivery of the
Certificates. a certificate relating to the "issue price" of the CertIficates in the form and to the effect
attached to or accompanying the Official Notice of Sale, with such changes thereto as may be acceptable to
the City.
Respectfully submitted,
M.E. Allison & Co., Inc. (Mgr)
Finser Investment Co. (Jt Mgr)
By
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Schertz, Texas, subject to and
in accordance with the Official Notice of Sale and OffiCIal Bid Form, this the 20th day of February, 1990.
ATTEST:
City Secretary, City at Schertz. I exas
Return Good Faith Check is hereby acknowledged:
Mayor, City of Schertz, lexas
Firm:
By:
CERTIFICATE YEARS
$850,000
CITY OF SCHERTZ, TEXAS
(Guadalupe, Comal & Bexar Counties)
COMBINATION TAX AND
LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION
SERIES 1990
Dated: February 1, 1990
Due: February 1
Year
Amount
Certificate
Years
Certificate Years
Cumulative
Certificate Years
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
$ 35,000
35,000
40.000
45.000
45,000
50,000
55,000
60,000
65,000
65,000
85,000
90,000
90,000
90,000
70
105
160
225
270
350
440
540
650
715
1,020
1,170
1,260
1,350
70
175
335
560
830
1,180
1,620
2,160
2,810
3,525
4,545
5,715
6,975
8,325
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
AVERAGE LIFE - 9.794 YEARS
OFFICIAL BID FORM
February 20, 1990
Mayor and City Council
City of Schertz (the "City")
1400 Live Oak Road
Schertz, Texas 78154
Dear Ladies and Gentlemen:
Subject to the terms of your Official Notice of Sale and Official Statement dated January 16, 1990 which
terms are incorporated by reference to this proposal, we hereby submit the following bid for $850,000 CITY
OF SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES
OF OBLIGATION. SERIES 1990, dated February 1, 1990 (the "Certificates").
We will pay you the par value thereof, plus accrued
plus a cash premium of $ -0-
mterest per annum as follows:
interest from their date to the date of delivery to us,
for Certificates stated to mature February 1 and bearing
February 1, 1992 9.20 % February 1, 1997
February 1, 1993 9.20 % February 1, 1998
February 1. 1994 9.20 % February 1, 1999
February 1, 1995 9.20 % February 1, 2000
February 1. 1996 9.20 % February 1, 2001
7.20 % February 1, 2002 7.40 %
7.25 % February 1, 2003 7.40 %
7.25 % February 1. 2004 7.50 %
7.30 % February 1, 2005 7.50 %
7.40 %
Interest cost, in accordance with the above bid, is:
Gross Interest Cost:
Less: Premium
NET INTEREST COST
EFFECITVE INTEREST RATE
$ 630.780.00
$ -0-
$ 630.780.00
7.576937
%
The Initial Certificate shall be registered in the name of LUN&W
(syndicate manager). We will provide First City. "I exas--Austm, N.A., Austm, Texas, the Paymg
Agent/Registrar. on forms to be provided by the Paying Agent/Registrar, with our registration instructIOns
at least five business days prior to the date set for initial delivery.
Cashier's Check of the First City Bank, Austin , Texas,
in the amount of $17,000.00, whIch represents our Good rarth DepOSIt (~=-~cl!a>) or (has been
made available to you prior to the opening of this Bid). and is submitted in accordance with the terms as
set forth in the OffiCIal Notice of Sale, said check is to be applied to the purchase price of the
Certificates.
We agree to accept delivery of and make payment for the Certificates in immediatelv available funds at the
principal corporate trust office, First City, Texas--Austin, N.A., Austin, lexas, not later than 10:00 A.M.,
San Antonio time, on March 20. 1990, or thereafter on the date the Certificates are tendered for delivery,
pursuant to the terms set forth in the Official Notice of Sale.
The undersigned agrees to complete. execute. and deliver to the Cit;y, by the date of initial delivery of the
Certificates. a certIficate relating to the "issue price" of the CertIficates in the form and to the effect
attached to or accompanying the Official Notice of Sale, with such changes thereto as may be acceptable to
the CIty.
Respectfully submitted.
Lovett Underwood Neuhaus & Webb
By
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Schertz, Texas. subject to and
in accordance with the Official Notice of Sale and OffiCIal Bid Form, this the 20th day of February, 1990.
Mayor, CIty at Schertz, "Iexas
A TrEST:
CIty Secretary, CIty at Schertz, Texas
Return Good Faith Check is hereby acknowledged:
Firm:
By:
CERTIFICATE YEARS
$850,000
CITY OF SCHERTZ, TEXAS
(Guadalupe, Cornal & Bexar Counties)
COMBINATION TAX AND
LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION
SERIES 1990
Dated: February 1, 1990
Due: February 1
Year
Amount
Certificate
Years
Certificate Years
Cumulative
Certificate Years
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
$ 35.000
35,000
40,000
45,000
45,000
50,000
55,000
60,000
65,000
65.000
85,000
90,000
90.000
90,000
70
105
160
225
270
350
440
540
650
715
1,020
1,170
1,260
1,350
70
175
335
560
830
1,180
1,620
2,160
2,810
3,525
4,545
5,715
6,975
8,325
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
AVERAGE LIFE - 9.794 YEARS
OFFICIAL BID FORM
February 20, 1990
Mayor and City Council
City of Schertz (the "City")
1400 Live Oak Road
Schertz. Texas 78154
Dear Ladies and Gentlemen:
Subject to the terms of your Official Notice of Sale and Official Statement dated January 16, 1990 which
terms are incorporated by reference to this proposal. we hereby submit the following bid for $850,000 CITY
OF SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES
OF OBLIGATION, SERIES 1990, dated February I, 1990 (the "Certificates").
We will pay you the par v~Ia!: thereof, plus accrued interest from their date to the date of delivery to us,
plus a cash premmm of $ for Certificates stated to mature February 1 and bearing
mterest per annum as follows:
February I, 1992 9.125 % February I, 1997
February 1. 1993 9.125 % February 1, 1998
February 1, 1994 9.125 % February 1. 1999
February 1. 1995 9.125 % February I, 2000
February 1, 1996 9.125 % February 1, 2001
Interest cost. in accordance with the above bid, is:
Gross Interest Cost:
Less: Premium
NET INfEREST COST
EFFECnVE INTEREST RATE
9.125 %
8.000 %
7.125 %
7.200 %
7.300 %
7.375 %
7.375 %
7.375 %
7.375 %
February 1, 2002
February 1, 2003
February 1. 2004
February 1. 2005
$ 634,345.00
$ -0-
$ 634,345.00
7.6197598
%
The Initial Certificate shall be registered in the name of Dean Witter Reynolds, Ine.
(syndicate manager). We will provide First City, Iexas--Austm. N.A., Austm, Iexas, the Paymg
Agent/Registrar, on forms to be provided by the Paying Agent/Registrar, with our registration instructlOns
at least five business days prior to the date set for initial delivery.
Cashier's Check of the First City National Bank, Austin , Texas,
in the amount of $17,UUU.UU, which represents our Good rmth DepOSIt (IS attached hereto) or (has been
made available to you prior to the opening of this Bid), and is submitted in accordance with the terms as
set forth in the OfficIal Notice of Sale, said check is to be applied to the purchase price of the
Certificates.
We agree to accept delivery of and make payment for the Certificates in immediately available funds at the
principal corporate trust office, First City, Texas--Austin, N.A.. Austin, Iexas, not later than lO:UU A.M.,
San Antonio time, on March 20, 1990, or thereafter on the date the Certificates are tendered for delivery,
pursuant to the terms set forth in the Official Notice of Sale.
The undersigned agrees to complete, execute, and deliver to the City, by the date of initial delivery of the
Certificates. a certIficate relating to the "issue price" of the CertIficates in the form and to the effect
attached to or accompanying the Official Notice of Sale. with such changes thereto as may be acceptable to
the City.
Respectfully submitted.
Dean Witter Reynolds, Inc.
By J.Lf.:v1'-'f'_-/~ q. ~y ..-.-----:;p
Auth&lzed Repre~~tl~/ ' iCry
ACCEPTANCE CLAUSE Stephen J. Young, Viee President
The above and foregoing bid is hereby in all things acce]Jted by the City of Schertz, Texas. subject to and
in accordance with the Official Notice of Sale and OffiCIal Bid Form, this the 20th day of February, 1990.
ArrEST:
CIty Secretary, CIty at Schertz. Texas
Return Good Faith Check is hereby acknowledged:
Mayor, CIty of Schertz, Texas
Firm:
By:
CERTIFICATE YEARS
$850,000
CITY OF SCHERTZ, TEXAS
(Guadalupe, Comal & Bexar Counties)
COMBINATION TAX AND
LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION
SERIES 1990
Dated: February 1, 1990
Due: February 1
Year
Amount
Certificate
Years
Certificate Years
Cumulative
Certificate Years
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
. $ 35,000
35,000
40.000
45.000
45,000
50,000
55,000
60,000
65,000
65,000
85,000
90,000
90,000
90,000
70
105
160
225
270
350
440
540
650
715
1,020
1,170
1,260
1,350
70
175
335
560
830
1,180
1,620
2,160
2,810
3.525
4,545
5,715
6,975
8,325
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
AVERAGE LIFE - 9.794 YEARS
OFFICIAL BID FORM
February 20, 1990
Mayor and City Council
City of Schertz (the "City")
1400 Live Oak Road
Schertz, Texas 78154
Dear Ladies and Gentlemen:
Subject to the terms of your Official Notice of Sale and Official Statement dated January 16, 1990 which
terms are incorporated by reference to this proposal. we hereby submit the following bid for $850,000 CITY
OF SCHERTZ. TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES
OF OBLIGATION, SERIES 1990, dated February I, 1990 (the "Certificates").
We will pay you the par value thereof, plus accrued interest from their date to the date of delivery to us,
plus a cash premium of $ _ 0 _ for Certificates stated to mature February 1 and bearing
mterest per annum as follows:
February 1. 1992 9.25 % February 1, 1997 8.50 % February 1. 2002 7.40 %
February I, 1993 9.25 % February I, 1998 7.25 % February 1, 2003 7.45 %
February 1, 1994 9.2~ % February 1, 1999 7.30 % February 1, 2004 7.~0 %
February 1, 1995 9.25 % February 1. 2000 7.35 % February I, 2005 7.50 %
February 1, 1996 9.25 % February 1, 2001 7.40 %
Interest cost, in accordance with the above bid, is:
Gross Interest Cost: $ Ii 1 Ii g? S 00
Less: Premium $ - 0 -
NET INTEREST COST $ F; iF; g? S 00
EFFECfIVE INTEREST RATE 7 F; S () 7 %
The Initial Certificate shall be registered in the name of :;5hNIA::$On Uh mCLn ~~,-:r.jIIG
(syndicate manager). We will provide First City, 1exas--AustIn, N.A.. AustIn, exas, the PaYIng
Agent/Registrar, on forms to be provided by the Paying Agent/Registrar. with our registration instructIOns
at least five business days prior to the date set for initial delivery.
Cashier's Check of the ~+ {'f-h, Bank, ~i.Js+:n , Texas,
in the amount of $17,00. ,WhiCh' ibpresents our Good t31th Deposl (IS attached hereto) or (has been
made available to you prior to the opening of this Bid), and is submitted in accordance with the terms as
set forth in the OffiCial Notice of Sale. said check is to be applied to the purchase price of the
Certificates.
We agree to accept delivery of and make payment for the Certificates in immediately available funds at the
principal corporate trust office, First City, Texas--Austin, N.A.. Austin, Iexas, not later than 10:00 A.M.,
San Antonio time, on March 20, 1990, or thereafter on the date the Certificates are tendered for delivery.
pursuant to the terms set forth in the Official Notice of Sale.
The undersigned agrees to complete, execute, and deliver to the City, by the date of initial delivery of the
Certificates, a certIficate relating to the "issue price" of the CertIficates in the form and to the effect
attached to or accompanying the Official Notice of Sale, with such changes thereto as may be acceptable to
the City.
Respectfully submitted.
~Iu {<bell L:J'-h1CL^I\. ~Y\
By
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things acceQted by the City of Schertz, Texas, subject to and
in accordance with the Official Notice of Sale and OffiCial Bid Form, this the 20th day of February, 1990.
Mayor, CIty of Schertz, I exas
A TrEST:
CIty Secretary, CIty ot ~chertz, l'exas
Return Good Faith Check is hereby acknowledged:
Firm:
By:
CERTIFICATE YEARS
$850,000
CITY OF SCHERTZ, TEXAS
(Guadalupe, Cornal & Bexar Counties)
COMBINATION TAX AND
LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION
SERIES 1990
Dated: February 1, 1990
Due: February 1
Year
Amount
Certificate
Years
Certificate Years
Cumulative
Certificate Years
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
$ 35,000
35,000
40.000
45,000
45.000
50,000
55,000
60,000
65,000
65,000
85,000
90,000
90,000
90,000
70
105
160
225
270
350
440
540
650
715
1,020
1,170
1,260
1,350
70
175
335
560
830
1.180
1,620
2,160
2,810
3,525
4,545
5,715
6,975
8,325
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
AVERAGE LIFE - 9.794 YEARS
OFFICIAL BID FORM
February 20, 1990
Mayor and City Council
City of Schertz (the "City")
1400 Live Oak Road
Schertz, Texas 78154
Dear Ladies and Gentlemen:
Subject to the terms of your Official Notice of Sale and Official Statement dated January 16. 1990 which
terms are incorporated by reference to this proposal, we hereby submit the following bid for $850,000 CITY
OF SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES
OF OBLIGATION, SERIES 1990. dated February 1, 1990 (the "Certificates").
We will pay you the par value thereof, plus accrued interest from their date to the date of delivery to us,
plus a cash premium of $ 140.85 for Certificates stated to mature February 1 and bearing
mterest per annum as follows:
February 1, 1992 9.10 % February 1, 1997
February 1. 1993 9.10 % February 1, 1998
February 1. 1994 9.10 % February 1, 1999
February 1, 1995 9.10 % February 1, 2000
February 1, 1996 9.10 % February 1, 2001
9.00 % February 1. 2002 7.50 %
7.10 % February 1, 2003 7.50 %
7.20 % February 1, 2004 7.50 %
7.30 % February 1. 2005 7.50 %
7.40 %
Interest cost, in accordance with the above bid, is:
Gross Interest Cost:
Less: Premium
NET INTEREST COST
EFFECrIVE INTEREST RATE
$ 637.510.00
$ 140.85
$ 637.369.15
7.656086
%
The Initial Certificate shall be registered in the name of MERCi\NSAEE.. cn
(syndicate manager). We will provide First City, Texas..Austm, N.A., Austm, rexas, the Paymg
Agent/Registrar, on forms to be provided by the Paying Agent/Registrar, with our registration instructions
at least five business days prior to the date set for initial delivery.
Cashier's Check of the Bank One Texas Bank, n~l1a". T.eya< ,Texas,
in the amount of $17,000.00, which represents our Good talth DepOSit (IS attached hereto) or (Ix'l&Rlt'lO<
made available to~lp'tlCll:XC<:KXIl$D()pe~~lOi)(hi6xJi3id), and is submitted in accordance with the terms as
set forth in the OffiCIal Notice of Sale, said check is to be applied to the purchase price of the
Certificates.
We agree to accept delivery of and make payment for the Certificates in immediatel, available funds at the
{lrincipal corporate trust office, First City. TexasnAustin, N.A., Austin, 1exas, not ater than 1():00 A.M.,
San Antonio time, on March 20, 1990. or thereafter on the date the Certificates are tendered for delivery,
pursuant to the terms set forth in the Official Notice of Sale.
The undersigned agrees to complete, execute, and deliver to the Cif);. by the date of initial delivery of the
Certificates, a certIficate relating to the "issue price" of the CertIficates in the form and to the effect
attached to or accompanying the Official Notice of Sale, with such changes thereto as may be acceptable to
the City.
Respectfully submitted,
Ban k One Texas
LJ{/~
By
AuthOrIzed RepresentatIve
ACCEPTANCE CLAUSE Warren M. Newman, Sr. V.P.
The above and foregoing bid is hereby in all things accepted by the City of Schertz, Texas, subject
in accordance with the Official Notice of Sale and OffiCial Bid Form, this the 20th day of February, 1990.
to and
Mayor. City of Schertz, Texas
ATfEST:
City Secretary, City at Schertz, rexas
Return Good Faith Check is hereby acknowledged:
Firm:
By:
CERTIFICATE YEARS
$850,000
CITY OF SCHERTZ, TEXAS
(Guadalupe, Cornal & Bexar Counties)
COMBINATION TAX AND
LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION
SERIES 1990
Dated: February 1, 1990
Due: February 1
Year
Amount
Certificate
Years
Certificate Years
Cumulative
Certificate Years
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
. $ 35,000
35,000
40,000
45,000
45,000
50,000
55,000
60,000
65,000
65,000
85.000
90,000
90,000
90,000
70
105
160
225
270
350
440
540
650
715
1,020
1,170
1,260
1,350
70
175
335
560
830
1,180
1,620
2,160
2,810
3,525
4,545
5,715
6.975
8.325
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
A VERAGE LIFE - 9.794 YEARS
OFFICIAL BID FORM
February 20, 1990
Mayor and City Council
City of Schertz (the "City")
1400 Live Oak Road
Schertz, Texas 78154
Dear Ladies and Gentlemen:
Subject to the terms of your Official Notice of Sale and Official Statement dated January 16, 1990 which
terms are incorporated by reference to this proposal, we hereby submit the following bid for $850,000 CITY
OF SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES
OF OBLIGATION, SERIES 1990, dated February 1, 1990 (the "Certificates").
We will pay you the par value thereof, plus accrued interest from their date to the date of delivery to us,
plus a cash premmm of $ - U - for Certificates stated to mature February 1 and bearing
mterest per annum as follows:
February 1, 1992 9.20 % February 1, 1997
February 1, 1993 9.20 % February 1, 1998
February 1, 1994 9.20 % February 1, 1999
February 1, 1995 9.20 % February 1, 2000
February 1, 1996 9.20 % February 1, 2001
8.7'1 % February 1, 2002 7.50 %
7 70 % February 1, 2003 7.50 %
7 2'1 % February 1, 2004 7.50 %
7 10 % February 1, 2005 7.50 %
7 40 %
Interest cost, in accordance with the above bid, is:
Gross Interest Cost:
Less: Premium
NET INTEREST COST
EFFEcrIVE INTEREST RATE
$ 638,175.00
$ -0-
$638.175.00
7.665766
%
The Initial Certificate shall be registered in the name of Nr.r ,F.XA~ *,AT~NAT, llljl\lK
(syndicate manager). We will provide First City, 1exas-- ustm, .., ustm, exas, the Paymg
Agent/Registrar, on forms to be provided by the Paying Agent/Registrar. with our registration instructlOns
at least five business days prior to the date set for initial delivery.
Cashier's Check of the fJ5.NR T1f?'AS Bank, n~ 11"" TiIY~" , Texas,
in the amount ofv.U~!l.\tVA!l}J..~J:1.!~!'.n~~J:>!S~rts our Good ralth DepOSIt (Is attathe ereto) or ~
il\l\~Xli~iJ~l\l{]f/j:~~l~l{]tliliX~ and is submitted in accordance with the terms as
set forth in the Official Notice of Sale, said check is to be applied to the purchase price of the
Certificates.
We agree to accept delivery of and make payment for the Certificates in immediatell available funds at the
principal corporate trust office, First City, Texas--Austin, N.A., Austin, I exas, not ater than lO:UU A.M.,
San Antonio time, on March 20, 1990, or thereafter on the date the Certificates are tendered for delivery,
pursuant to the terms set forth in the Official Notice of Sale.
The undersigned agrees to complete, execute, and deliver to the Cil):, by the date of initial delivery of the
Certificates, a certIficate relating to the "issue price" of the CertIficates in the form and to the effect
attached to or accompanying the Official Notice of Sale. with such changes thereto as may be acceptable to
the City.
Respectfully submitted,
Nr.Nll TF.XAS
By, ~
ut onze eprese e
ACCEPTANCE CLAUSE Leslie F. Parrish, Vice President
The above and foregoing bid is hereby in all things acce]Jted by the City of Schertz, Texas, subject to and
in accordance with the Official Notice of Sale and OffiCIal Bid Form, this the 20th day of February, 1990.
Mayor, CIty of Schertz, Texas
ArrEST:
CIty Secretary, CIty ot Schertz, I exas
Return Good Faith Check is hereby acknowledged:
Firm:
By:
CERTIFICATE YEARS
$850,000
CITY OF SCHERTZ, TEXAS
(Guadalupe, Comal & Bexar Counties)
COMBINATION TAX AND
LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION
SERIES 1990
Dated: February 1, 1990
Due: February 1
Year
Amount
Certificate
Years
Certificate Years
Cumulative
Certificate Years
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
. $ 35,000
35,000
40,000
45,000
45,000
50,000
55,000
60,000
65,000
65,000
85.000
90,000
90,000
90,000
70
105
160
225
270
350
440
540
650
715
1,020
1,170
1,260
1,350
70
175
335
560
830
1,180
1,620
2,160
2.810
3,525
4,545
5,715
6,975
8,325
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
AVERAGE LIFE - 9.794 YEARS
I
Prepared by:
Rauscher Pierr:e Reftnes, Inc.
300 Convent Street, Suite 160(;
San Antonio, Teras 78205
TABULATION OF BIDS
RECEIVED AT SALE OF
$850,000
CITY OF SCHERTZ, TEXAS
Combination Tax & Limited Pledge Revenue Certificates of Obligation, Series 1990
Sold:
Tuesday, February 20, 1990 @ 7:00 P.M., C.S.T.
Premium Net EIrec:t1vf
Interest or Interest Interest
Account Maturities Rate Discount Cost Rate
KNIBBE FINANCIAL GROUP, INC. 2-1-92/97 9.00 -0- 622,302.50 7.47511
SOUtHWEST SECURITIES, INC. 2-1-98 7.00
2-1-99 7.10
2-1-00/05 7.25
RAUSCHER PIERCE REFSNES, INC. 2-1-92/97 8.75 -0- 623,897.50 7.49426
FIRST SOUTHWEST COMPANY 2-1-98 8.50
2-1-99 7.20
2-1-00/01 7.25
2-1-02 7.30
2-1-03/04 7.40
2-1-05 6.75
M.E. ALLISON & CO., INC. 2-1-92/95 9.125 -0- 629,742.50 7.56447
Finser Investment Co. 2-1-96 8.375
2-1-97 7.15
2-1-98 7.20
2-1-99 7.25
2-1-00 7.35
2-1-01 7.40
2-1-02 7.45
2-1-03/05 7,50
-
LOVETT UNDERWOOD NEUHAUS & WEBB 2-1-92/96 9.20 -0- 630,780.00 7.57693
2-1-97 7.20
2-1-98/99 7.25
2-1-00 7.30
2-1-01/03 7.40
2-1-04/05 7.50
DEAN WITTER REYNOLDS, INC. 2-1-92/97 9.125 -0- 634,345.00 7.61975
2-1-98 8.000
2-1-99 7.125
2-1-00 7.200
2-1-01 7.300
2-1-02/05 7.375
SHEARSON LEHMAN HUTTON 2-1-92/96 9.25 -0- 636,925.00 7.6507
2-1-97 8.50
2-1-98 7.25
2-1-99 7.30
2-1-00 7.35
2-1-01/02 7.40
2-1-03 7.45
2-1-04/05 7.50
'-
~'
I
Prepared by:
Rauscher Pierce Refines, Inc.
300 Convent Street, Suite 1600
San Antonio, Texas 78205
TABUlATION OF BIDS
RECEIVlm AT SALE OF
$850,000
CITY OF SCHERTZ, TEXAS
Combination Tax & Limited Pledge Revenue Certificates of Obligation, Series 1990
Sold:
Tuesday, February 20, 19YO @ 7:00 P.M., C.S.T.
Premium Net ElI'edlvt
Interest or Interest Interest
Account Maturities Rate Discount Cost Rate
-
BANK ONE TEXAS 2-1-92/96 9.10 140.85 637,369.15 7.6560e
2-1-97 9.00
2-1-98 7.10
2-1-99 7.20 ,
2-1-00 7.30
2-1-01 7.40
2-1-02/05 1.50
NCNB TEXAS 2-1-92/96 9.20 -0- 638,175.00 7.66576
2-1-97 8.75
2-1-98 7.20
2-1-99 7.25
2-1-00 7.30
2-1-01 7.40
2-1-02/05 7.50
City of Schertz, Texas FINAL SCHEDULE
$850,000 Combination Tax and Limited Pledge Revenue
Certificates of Obligation, series 1990
(1) (2) (3) (4) (5) (6) (7)
$850,000 New Issue [Mtys 2-1]
Dated 2-1-90 First Interest 2.'-91
Fiscal yr Existing Principal combined
Ending Debt Coupon & Debt
Sep 30 Service Principal Rate " Interest Interest Service
1990 $ 94,548 $ 94,548
1991 94,067 $ 98,659 $ 98,659 192,726
1992 92,085 $ 35,000 9.000 64,198 99,198 191,283
1993 99,832 35,000 9,000 61,048 96,048 195,880
1994 96,976 40,000 9.000 57,673 97,673 194,649
1995 95,128 45,000 9.000 53,848 98,848 193,976
1996 98,116 45,000 9.000 49,798 94,798 192,914
1997 94,049 50,000 9.000 45,523 95,523 189,572
1998 95,726 55,000 7.000 41,348 96,348 192,074
1999 95,984 60,000 7.100 37,293 97,293 193,277
2000 92,083 65,000 7.250 32,806 97,806 189,889
2001 93,211 65,000 7.250 28,094 93,094 186,305
2002 67,113 85,000 7.250 22,656 107,656 174,769
2003 90,000 7.250 16,313 106,313 106,313
2004 90,000 7.250 9,788 99,788 99,788
2005 _90,000 7.250 3,263 93,263 93,263
$1,208,918 S850,OOO $622,303 $1,472,303 $2,681,221
========== ======== -------- ---------- ----------
-------- ---------- ----------
Average Interest Rate 7.475%
Average Life. Years. 9.794
Bond Years. . . . . . 8,325.000
Debt service requirements for fiscal year ending 9-30-91 include eighteen (18)
months. interest on the $850,000 new issue.
'Prepared By-
Rauscher Pierce Refsnes, Inc.
1600 InterFirst Plaza
300 Convent
San Antonio, Texas 78205
February 21, 1990
City of Schertz, Texas FINAL SCHEDULE
$850,000 Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Series 1990
Delivery Date 02/01/90
Date Principal Coupon Interest Total Annual
02/01/91 65,772.50 65,772.50
08/01/91 32,886.25 32,886.25 98,658.75
02/01/92 35,000.00 9.000 32,886.25 67,886.25
08/01/92 31,311.25 31,311.25 99,197.50
02/01/93 35,000.00 9.000 31,311.25 66,311.25
08/01/93 29,736.25 29,736.25 96,047.50
02/01/94 40,000.00 9.000 29,736.25 69,736.25
08/01/94 27,936.25 27,936.25 97,672.50
02/01/95 45,000.00 9.000 27,936.25 72,936.25
08/01/95 25,911.25 25,911.25 98,847.50
02/01/96 45,000.00 9.000 25,911.25 70,911.25
08/01/96 23,886.25 23,886.25 94,797.50
02/01/97 50,000.00 9.000 23,886.25 73,886.25
08/01/97 21,636.25 21,636.25 95,522.50
02/01/98 55,000.00 7.000 21,636.25 76,636.25
08/01/98 19,711.25 19,711.25 96,347.50
02/01/99 60,000.00 7.100 19,711.25 79,711.25
08/01/99 17,581.25 17,581.25 97,292.50
02/01/00 65,000.00 7.250 17,581.25 82,581.25
08/01/00 15,225.00 15,225.00 97,806.25
02/01/01 65,000.00 7.250 15,225.00 80,225.00
08/01/01 12,868.75 12,868.75 93,093.75
02/01/02 85,000.00 7.250 12,868.75 97,868.75
08/01/02 9,787.50 9,787.50 107,656.25
02/01/03 90,000.00 7.250 9,787.50 99,787.50
08/01/03 6,525.00 6,525.00 106,312.50
02/01/04 90,000.00 7.250 6,525.00 96,525.00
08/01/04 3,262.50 3,262.50 99,787.50
02/01/05 90,000.00 7.250 3,262.50 93,262.50
08/01/05 _93,262.50
Totals: 850,000.00 622,302.50 1,472,302.50 1,472,302.50
Less Accrued From 02/01/90: .00 .00
Net Cost: 622,302.50 1,472,302.50
. Prepared Sy.
Rauscher Pierce Refsnes, Inc.
1600 InterFirst Plaza
300 Convent
San Antonio, Texas 78205
February 21, 1990
TAX DATA
Taxes are due October 1 and become delinquent after January 31. No split payments are allowed. Discounts
are not allowed. Penalties and Interest: (a) a delinquent tax incurs a penally of six percent of the amount
of the tax for the first calendar month it is delinquent plus one percent for each additional month or portion
of a month the tax remains unpaid prior to July 1 of the year in which it becomes delinquent. However. a
tax delinquent on July 1 incurs a total penalty of twelve percent of the amount of the delinquent tax without
regard to the number of months the tax has been delinquent; (b) a delinquent tax accrues interest at a rate
of one percen( for each month or portion of a month the tax remains unpaid; and an additional penally up to
a maximum of 15% of taxes, penalty and interest may be imposed to defray costs of collection for taxes
delinquent after July 1. All percentage of collections set forth below exclude penal<ies and interest.
Tax Assessed Tax % of Collections
Year Valuation Rate Current Total Year Ended
1972 $ 9.657.845 $1.0000 98.73 100.68 9-30-73
1973 12.217.028 1.0000 96.74 97.74 9-30-74
1974 16.319.868 1.0000 99.33 100.30 9-3()'75
1975 19.099,556 1.0000 99.23 99.91 9-30-76
1976 20,403,411 1.0000 97.96 98.61 9-30-77
1977 22.987.225 1.0000 99.34 101.40 9- 3M8
1978 24,418.700 1.0000 99.70 100.54 9-3()'79
1979 25.512,500 1.0000 99.14 99.56 9-30-80
1980 35.305,557 1.0000 96.61 96.81 9-30-81
1981 57,488.887 (a) .6400 99.57 102.86 9-30-82
1982 95.011.961 (b) .4400 98.44 98.77 9-3()'83
1983 106.871.357 .4200 98.71 101.16 9.3().84
1984 111,586.009 .4400 98.97 99.51 9-3()'85
1985 125,213,487 .4360 97.55 98.31 9-30-86
1986 144,701,694 .4128 96.97 98.13 9-3()'87
1987 285.978.200 (b) .2471 95.55 98.25 9-3()'88
1988 288.279.770 .2576 95.64 97.63 9-3()'89
1989 289.382,870 .3183 (In Process of Collection)
(a) Increased basis of assessment from 65% to 100%.
(b) Revaluation.
TAX RATE LIMITATIONS
Article XI. Section 5 of Texas Constitution, applicable to clties of more than 5.000 population: 52.50 per 5100
assessed valuation. City operates under a Home Rule Charter. which was adopted at a time when the
population was over 5.000. and which adopted the constitutional provisions.
TAX RATE DISTRIBUTION
1989 1988 1987 1986 1985
General Fund 50.2706 50.2153 50.1997 50.3383 50.35515
Interest & Sinking Fund .0477 .0423 0.0474 ...Qill .08085
Totals 50.3183 50.2576 50.2471 50.4128 SO.43600
-8-
GENERAL OBLIGATION BONDS AUTHORIZED BUT UNISSUED
Puroose
Amount Authorized
But Unissued
Date Voted
Alamo Community College District School Building Bonds
Bexar County. None
Bexar County Hospital District - None
Comal County. None
Comal County Flood Control Bonds. None
Comal Independent School District. None
Guadalupe County - None
San Antonio River Authority - None
Schertz-Cibolo-Universal City
Independent School District
City of Schertz
$ 45,000,000
09-26-87
School Building Bonds $ 3,900,000 (a) 03-11-89
Sewer System $ 14,000 12-16-61
Sewer System 250,000 07-18-70
Street Improvements 620.000 01-10-87
Total $ 884,000
(a) Scheduled to be sold on March I, 1990.
GENERAL FUND COMPARATIVE STATEMENT OF REVENUES AND EXPENDITURES
AND ANALYSIS OF CHANGES IN FUND BALANCES
Fund Balance - Beginning of Year
Fiscal Year Ended
1989 (1) 1988 1987 1986
$ 22,550 $ 397,260 $ 75,152 $ 123,751
$1,862,621 $1,798,902 $1,624,508 $1,511,655
2.046.171 1.780.750 1.692.139 1.381.917
$ (183,550) $ 18,152 $ (67,631) $ 129,738
$ 282,691 $ 233,502 $ 37,617 $ 25,461
(121,710) (626,364) (107,878) (203,798)
.0. -0- 460,000 -0-
50.000 -0- -0. -0-
$ 210,981 $ (392,862) $ 389,739 $ (178,337)
$ 49,981 $ 22,550 $ 397,260 $ 75,152
Revenues
Expenditures
Excess (Deficit) of Revenues
Over Expenditures
Other Financing Sources (Uses):
Operating Transfers In
Operating Transfers Out
Bond Proceeds
Proceeds of Bank Loan
Total Other Financing Sources (Uses)
Fund Balance - End of Year
(1) The City's Audit for the fiscal year ended 9-30-89 is currently being completed. These figures have
been provided by the City's Auditor.
NOTE: The above figures for
"Expenditures" include
the following amount
for "Capital Outlay"
$ 86,808
$ 38,221
$ 26,546
$ 35,439
-12-
ESTIMATED DEBT SERVICE REQUIREMENTS
(Including The Certificates)
Fiscal Yr. Existing The Certificates Combined
Ending Debt Principal & Debt
9/30 Service Princinal Interes(' Interest Service
1990 $ 94,548 $ 94,548
1991 94,067 $ 95,625 $ 95,625 189,692
1992 92,085 $ 35,000 62,438 97,438 189,522
1993 99,832 35,000 59,813 94,813 194,645
1994 96,976 40,000 57,000 97,000 193,976
1995 95,128 45,000 53,813 98,813 193,940
1996 98,116 45,000 50,438 95,438 193,553
1997 94,049 50,000 46,875 96,875 190,924
1998 95,726 55,000 42,938 97,938 193,663
1999 95,984 60,000 38,625 98,625 194,609
2000 92,083 65,000 33,938 98.938 191,021
2001 93,211 65,000 29,063 94,063 187,273
2002 67,113 85,000 23,438 108,438 175.551
2003 90,000 16,875 106,875 106,875
2004 90,000 10.125 100,125 100,125
2005 90.000 3.375 93.375 93.375
$1.208.916 $ 850.000 $624.375 $1.474.375 $2.683.291
"Existing Debt Service" includes net general obligations debt only, and does not include $150,000 Combination
Tax & Jr. Lien Revenue Certificates of Obligation, Series 1981 or $1,250,000 Combination Tax and Jr. Lien
Revenue Certificates of Obligation 1983.
~: Debt Service Requirements for fiscal year ending 9-30-91 include eighteen (18) months' interest on the
Certificates.
'Interest calculated at 7.50% for illustration purposes only.
TAX ADEQUACY
NET GENERAL OBLIGATION DEBT:
1989 Assessed Valuation
Estimated Debt Service Requirements for Fiscal Year Ending 9.30.91
Indica(ed Tax Rate
Indicated Tax Levy
Estimated 95% Tax Collections
$289,382,870
189,692
0.0690
199,674
189,690
-13-
UTILITY SYSTEM DEBT STATEMENT
(As of January 1, 1990)
Utility System Revenue Bonds Outstanding
$1,975,000
UTILITY SYSTEM FUND BALANCES
(As of September 30, 1989)
Interest and Sinking Fund Balance
Reserve Fund Balance
$ 125,860.72
397.885.85
Total Fund Balances
$ 523.746.57
UTILITY SYSTEM OPERATING STATEMENT
Fiscal Year Ended
1989 (1) 1988 1987 1986 1985
Revenues $1,815,154 $1,902,962 (2) $1.414,895 $1,398,375 $1,281.983
Expenses
Sewer Contract $ 405,509 $ 418,686 $ 327,752 $ 357,772 $ 352,134
Other 639.781 647.697 699.638 581.375 463.671
Total $1,045,290 $1,066,383 $1,027,390 $ 939,147 $ 815,805
Available for
Debt Service $ 769,864 $ 836,579 $ 387,505 $ 459,228 $ 466,178
Annual Debt
Service Reqmt $ 221,286 $ 221,198 $ 167.486 $ 133,773 $ 136,748
Coverage on
Revenue Bonds 3.48X 3.78X 2.31X 3,43X 3.41X
Cus(omer Count
Water 3.856 3,692 3.498 3,208 2,877
Sewer 2,904 2,662 2,639 2,333 2,231
(1) The City's Audit for the fiscal year ended 9-30-89 is currently being completed. These figures have
been provided by the City's Auditor.
(2) Includes $312,807 recovery from lawsuit.
-16-
RAUSCHER PIERCE REFSNES,INC.
February 20, 1990
Ms. June Krause
City Secretary
City of Schertz
1400 Schertz Parkway
Schertz, Texas 78154
Re: $850,000 CITY OF SCHERTZ, TEXAS
Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Series 1990
Dear June:
In accordance with the above-referenced issue, please find enclosed herewith the
following documents with instructions for completion. Each folder contains one
complete document along with a number of signature pages identical to the
signature page of the complete document. The signature pages should be executed
in accordance with the instructions outlined below and returned to our office where
we will attach them to the complete document and forward them to the Bond
Attorney for processing. The complete document is for the City's files.
1. Ordinance authorizing the issuance of the Certificates - one complete
copy and five signature pages. You and the Mayor need to sign all signature
pages and impress each with the City's seal. Return all executed signature
pages to us.
2. Certificate of City Secretary - two copies and five signature pages. On
both complete documents, please fill in all blanks on pages 1 and 2 with the
requested information. You, as City Secretary, will need to sign all signature
pages and impress each with the City's seal. Return all executed signature
pages to us, along with one complete copy of the document.
3. General Certificate - one copy and five signature pages.
Mayor will need to sign all signatures pages and impress each
seal. Return all executed signature pages to us.
4. Signature and No-Litigation Certificate - one copy and five signature
pages. You and the Mayor will need to sign all signature pages and impress
each with the City's seal where indicated (above your signature lines). DO
NOT DATE THIS DOCUMENT. Your signatures will need to be certified as
true and genuine by an officer of the City's depository bank AND also
impressed WIth the Bank's seal. Return all executed signature pages to us.
You and the
with the City's
5. Certificate as to Official Statement - one copy and five signature pages.
You and the Mayor will need to sign all signature pages and impress each with
the City's seal. Return all executed signature pages to us.
1600 NCNB Plaza, 300 Convent' San Antnnio, Texas 78205 . (512) 225-6611
Member New York Stock Exchange, Inc.
Ms. June Krause
February 20, 1990
Page 2
6. Paying AgentlRegistrar Agreement - one copy and five signature pages.
You and the Mayor will need to sign all signature pages and imprcss cach with
the City's scal. Return all executed signature pages to us.
7. Receipt - six copies. Please have Kerry, as City Managcr, sign all copies
of this document. Retain one copy for the City's filcs and return five
executed copics to us.
8. Instruction Letter to the Attorney Gcneral - four copies. Please have the
Mayor sign each of these letters. Retain one copy for the City's files and
return three executed copies to us.
9. Instruction Letter to the Comptroller of Public
Please have the Mayor sign each of these letters.
City's files and return three executed copies to us.
10. Instruction Letter to Paying AgentlRegistrar one copy
signature pages. Please have the Mayor sign all signature pages.
executed signature pages to us,
Accounts - four copies.
Retain one copy for the
and three
Return three
11. Certificate as to Tax Exemption - one copy and five signature pages.
You and the Mayor will need to sign all signature pages. DO NOT DATE THIS
DOCUMENT. Return five executed signature pages to us.
12. IRS Form 8038 - six copies. Please have the Mayor sign all copies of
this document. DO NOT DATE THIS DOCUMENT. Return five executed copies
to us.
13. Initial Certificate - one original and one copy. You and the Mayor will
need to sign the original Initial Certificate and the copy on page 7 and
impress same with the City's scal. Rctain thc copy for the City's files and
return the executcd original Initial Ccrtificate to us.
16. Form for facsimile signatures and seal - onc copy.
will need to sign and seal this document in the spaces
executed document to us.
You and the Mayor
indicatcd. Return thc
If you have any questions or require additional information, please do not hesitate
to contact us, and with kind personal regards and best wishes, I remain,
~
/NP/
Thomas M. Anderlitch
Vice President
TMNrgj
Enclosures
_,,~, P",.,.... CO"..., .0.0 ""W,"US" ~'L"'"
(or so much thereof as shall not have been paid upon prior
redemption) and to pay interest on the unpaid Principal Amount
hereof from the Certificate Date specified above, or from the
most recent interest payment date to which interest has been
paid or duly provided for until the Principal Amount has become
due and payment thereof has been made or duly provided for, at
the per annum rates of interest specified above computed on the
basis of a 360-day year of twelve 30-day months; such interest
being payable on February 1 and August 1 of each year,
commencing February I, 1991.
Principal of this Certificate shall be payable to the
Registered Owner hereof (the Holder), upon its presentation
and surrender, at the principal corporate trust office of First
City, Texas--Austin, N.A., Austin, Texas (the Paying
Agent/Registrar). Interest shall be payable to the Holder of
this Certificate whose name appears on the Security Register
maintained by the Paying Agent/Registrar at the close of
business on the Record Date, which is the fifteenth day of the
month next preceding each interest payment date. All payments
of principal of and interest on this Certificate shall be in
any coin or currency of the United States of America which at
the time of payment is legal tender for the payment of public
and private debts. Interest shall be paid by the Paying
Agent/Registrar by check sent on or prior to the appropriate
date of payment by United States Mail, first-class postage
prepaid, to the Holder hereof at the address appearing in the
Security Register or by such other method, acceptable to the
Paying Agent/Registrar, requested by, and at the risk and
expense of, the Holder hereof.
This Certificate is one of the series specified in its
title issued in the aggregate principal amount of $850,000 (the
Certificates) pursuant to an Ordinance adopted by the
governing body of the City (the Ordinance), for the purpose
of paying contractual obligations of the City to be incurred
for making permanent public improvements and for other public
purposes, including (1) purchase of rights-of-way for street
improvements, (2) purchase of land for an animal control
facility, (3) construction of public works, including
construction of a building or buildings and acquisition of
equipment therefor for an animal control facility, (4) purchase
of land and an existing building for a public works service
center facility and renovation and improvement thereof and
acquisition of equipment therefor, or purchase of land and
Page 2 of 9 Pages
"['."<$ .'''N'''~ "0"'.~.Y 00..0 '~".~"H~ ~.u..
construction of a building and acquisition of equipment for ..i
public works service center facility, (5) purchase of police
vehicles and communications equipment, and (6) payment for
professional services under and in strict conformity with the
laws of the State of Texas, particularly Texas Revised Civil
Statutes Annotated Article 1175, as amended, Texas Revised
Civil Statutes Annotated Articles 1111 through 1118, inclusive,
as amended, the Certificate of Obligation Act of 1971, as
amended, Local Government Code Section 271.041 through 271.063,
and the Home Rule Charter of the City.
Tbe Certificates stated to mature on and after
February 1, 2001 may be redeemed prior to their Stated
Maturities, at the option of the City, on February 1, 2000, or
on any Interest Payment Date thereafter, in whole or in part in
principal amounts of $5,000 or any integral multiple thereof
(and if within a Stated Maturity at random and by lot by the
Paying Agent/Registrar) at the redemption price of par,
together with accrued interest to the date of redemption, and
upon thirty (30) days prior written notice being given by
United States Mail, first-class postage prepaid, to Holders of
the Certificates to be rc "eemed, and subject to the terms and
provisions relating thereto contained in the Ordinance. If
this Certificate is in a denomination in excess of $5,000,
portions of the principal sum hereof in installments of $5,000
or any integral multiple thereof may be redeemed, and, if less
than all of the principal sum hereof is to be redeemed, there
shall be issued, without charge therefor, to the Holder hereof,
upon the surrender of this Certificate to the Paying
Agent/Registrar at its principal corporate trust office, a new
Certificate or Certificates of like Stated Maturity and
interest rate in any authorized denominations provided in the
Ordinance for the then unredeemed balance of the principal sum
hereof.
If this Certificate (or any portion of the principal
sum hereof) shall have been duly called for redemption and
notice of such redemption duly given, then upon such redemption
date this Certificate (or the portion of the principal sum
hereof to be redeemed) shall become due and payable, and, if
money for the payment of the redemption price and the interest
accrued on the principal amount to be redeemed to the date of
redemption is held for the purpose of such payment by the
Paying Agent/Registrar, interest shall cease to accrue and be
payable hereon from and after the redemption date on the
principal amount hereof to be redeemed. If this Certificate is
Page 3 of 9 Pages
"',~, '~'"-"'G co...... ao"g 5~'C,.._'5T5 -"AC.'5
called for redemption, in whole or in part, the City or the
Paying Agent/Registrar shall not be required to issue,
transfer, or exchange this Certificate within forty-five (45)
days of the date fixed for redemption; provided, however, such
limitation of transfer shall not be applicable to an exchange
by the Holder of the unredeemed balance hereof in the event of
its redemption in part.
Tbe Certificates of this series are payable from the
proceeds of an ad valorem tax levied upon all taxable property
within the City within the limitations prescribed by law and
are further payable from and secured by a lien on and pledge of
the Pledged Revenues (identified and defined in the Ordinance)
being a limited amount of the Net Revenues derived from the
operation of the City's combined waterworks and sewer system,
such lien on and pledge of Pledged Revenues being subordinate
and inferior to the lien on and pledge of such Net Revenues
securing payment of the currently outstanding Prior Lien
Obligations and Junior Lien Obligations (identified and defined
in the Ordinance). In the Ordinance, the City reserves and
retains the right to issue Additional Prior Lien Obligations,
Additional Junior Lien Obligations, Subordinate Lien
Obligations, and Additional Limited Pledge Obligations (all as
identified and defined in the Ordinance), while the
Certificates are Outstanding, without limitation as to
principal amount but subject to any terms, conditions or
restrictions as may be applicable thereto under law or
otherwise.
Reference is hereby made to the Ordinance, copies of
which are on file in the principal corporate trust office of
the Paying Agent/Registrar, and to all of the provisions of
which the Holder by his acceptance hereof hereby assents, for
defini tions of terms; the description of and the nature and
extent of the tax levied and the revenues pledged for the
payment of the Certificates; the terms and conditions under
which the City may issue Additional Prior Lien Obligations,
Additional Junior Lien Obligations, Subordinate Lien
Obligations, and Additional Limited Pledge Obligations; the
terms and condi tions relating to the transfer or exchange of
the Certificates; the conditions upon which the Ordinance may
be amended or supplemented with or without the consent of the
Holder; the rights, duties, and obligations of the City and the
Paying Agent/Registrar; the terms and provisions upon which
this Certificate may be redeemed or discharged at or prior to
the Stated Maturity thereof, and deemed to be no longer
Page 4 of 9 Pages
"' ,~~ p","",~ CD~.."y 'ONO $~<C'."STO DACCA'
Outstanding thereunder; and for the other terms and prOV1Slons
specified in the Ordinance. Capitalized terms used herein have
the same meanings assigned in the Ordinance.
This Certificate, subject ':0 certain limitations
contained in the Ordinance, may be transferred at the principal
corporate trust office of the Paying Agent/Registrar, duly
endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Paying Agent/Registrar duly
executed by the Holder hereof, or his duly authorized agent,
and thereupon one or more new fully registered Certificates of
the same Stated Maturity, of authorized denominations, bearing
the same rate of interest, and of the same aggregate principal
amount will be issued to the designated transferee or
transferees.
The City and the Paying Agent/Registrar, and any agent
of either, shall treat the Holder hereof whose name appears on
the Security Register (i) on the Record Date as the owner
hereof for purposes of receiving payment of interest hereon,
(ii) on the date of surrender of this Certificate as the owner
hereof for purposes of receiving payment of principal hereof at
its Stated Maturity, or its redemption, in whole or in part,
and (iii) on any date for all other purposes, and neither the
City nor the Paying Agent/Registrar, or any such agent of
either, shall be affected by notice to the contrary. In the
event of a non-payment of interest on a scheduled payment date,
and for thirty (30) days thereafter, a new record date for such
interest payment (a Special Record Date) will be established
by the Paying Agent/Registrar, if and when funds for the
payment of such interest have been received from the City.
Notice of the Special Record Date and of the scheduled payment
date of the past due interest (the Special Payment Date -
which shall be fifteen (15) days after the Special Record Date)
shall be sent at least five (5) business days prior to the
Special Record Date by United States Mail, first-class postage
prepaid, to the address of each Holder appearing on the
Security Register at the close of business on the last business
day next preceding the date of mailing of such notice.
It is hereby certified, covenanted, and represented
that all acts, conditions, and things required to be performed,
exist, and be done precedent to the issuance of this
Certificate in order to render the same a legal, valid, and
binding obligation of the City have been performed, exist, and
have been done, in regular and due time. form, and manner, as
Page 5 of 9 Pages
",.,~. "R.''''"G CO~p,.y .0.0 s..,C'."~" O.".S
""," p'".n.G C"M~..~ 0".0 S~~C'."STO. GAC'.'
"HMS O~'."'G OG....., .00D '.'e.AC,'" O.LL.,
Focm 8038.6
Information Return for Tax-Exempt Governmental Obligations
... Under Section 149(8)
... See sep.rate Instructions
(Use Form 8038.GC jf the issue price is under $100,000)
OMS No. 1545-0720
Expires 5-31-92
(Rev. October 1989)
Department of the Treasury
Internal Revenue Service
Re ortin Authorit
Check box if Amended Return ...
2 Issuer's employer identification number
1 Issuer's name
City of Schertz
3 Number and street
1400 Schertz Parkway
5 Cityortown,state,andZIPcode
Schertz, Texas 78154
7 Name of Issue
Combination Tax and Limited Pledge Revenue Certificates
T pe of issue (check box(es) that applies and enter the issue Price)
9 Check box if obligations are tax or other revenue anticipation bonds ~ 0
10 Check box If obligations are in the form of a lease or installment sale ~ 0
11 0 Education
12 0 Health and hospital
13 0 Transportation
14 0 Public safety
15 0 EnVironment (including sewage bonds)
16 0 Housing
17 0 Utilities
18 0 Other, Describe (see Instructions) ~
4 Report number
Gl9
6 Date of issue
'-on 8 CUSIP Number
Issue price
Description of Obli ations
(a)
Maturity date
(0)
Interest rate
(cJ
Issue price
(dJ
Stated redemption
riceatmaturit
Proceeds used for accrued interest
Issue price of entire issue (enter line 2Oc)
Proceeds used for bond issuance costs (including underwriters' discount) .
Proceeds used for credit enhancement.
Proceeds allocated to reasonably required reserve or replacement fund
Proceeds used to refund prior issues.
Total (add lines 23, 24, 25. and 26)
Nonrefundin roceeds of the issue subtract line 27 from line 22 and enter amount here
Descri tion of Refunded Bond$ com lete this art onl for refundln bonds)
Enter the remaining weighted average maturity of the bonds to be refunded
Enter the last date on which the refunded bonds will be called
Enter the date s the refunded bonds were issued ~
Miscellaneous
23
24
25
26
~
~
years
32 Enter the amount of the state volume cap allocated to the issue ~
33 Enter the amount of the bonds designated by the issuer under section 265(b)(3)(BXI)(III) (small
issuer exception). .... ....
34 Pooled financings:
a Enter the amount of the proceeds of this issue that are to be used to make loans to other governmental units ~
b Check box If this issue is a loan made from the proceeds of another tax-exempt issue ~ 0 and enter the name of the
issuer ~ and the date of the issue ~
Under penalties of perjury. I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief.
they are true, correct. and complete.
Please
Sign
Here
~kj'.-v;/a-;?~
Date
ll. Earl W. Sawyer, Mayor
, Type or print name and title
Focm 8038-G iRe< 10-89)
*u.s. OOvnn..nt PTtnttna Of tic.: 1989-262-151/00019
For Paperwork Reduction Act Notice, see page 1 of the instructions.
February 20, 1990
First City, Texas--Austin N.A.
816 Congress Avenue
Tenth Floor
Austin, Texas 78701
Attn: Ms. Marcia Southworth
Corporate Trust Department
Re:
$850,000 "Ci ty
Limited Pledge
Series 1990",
Cert ifi cates)
of Schertz, Texas Combination Tax and
Revenue Certificates of Obligation,
dated February 1, 1990 (the
Dear Ms. Southworth:
The payment for and delivery of the Certificates to
the initial purchasers is to occur at your Bank. Preliminary
to the delivery of the Certificates, you will receive a single
fully-registered obligation in the total principal amount of
the Certificates (the Initial Obligation) from the
Comptroller of Public Accounts of the State of Texas, together
with the approving opinion of the Attorney General. When you
receive the Initial Obligation, please forward it, together
with the approving opinion of the Attorney General, by
overnight delivery, to the firm of Fulbright & Jaworski, 300
Convent Street, Suite 2200, San Antonio, Texas 78205, Attn:
W. Jeffry Kuhn, for their examination and review. After the
examination of the Initial Obligation by such firm, it will be
returned to you, and thereupon you are authorized to deliver it
to the initial purchasers thereof,
or their order,
available funds
Receipt.
upon payment being made therefor in immediately
in accordance with the terms of the enclosed
When payment for the Initial Obligation has occurred,
please transmit the proceeds thereof by the fastest means
available in immediately available funds to the City's
depository bank.
I enclose two copies of a Signature and No-Litigation
Certificate, Certificate as to Official Statement, Certificate
as to Tax Exempt ion, and Receipt, each executed and comp leted
except as to date. When payment for the Initial Obligation is
made, please date and release to the initial purchaser one copy
of the Signature and No-Litigation Certificate, the Certificate
as to Official Statement, and Certificate as to Tax Exemption,
and return the remaining copies of such certificates and all
copies of the Receipt to Bond Counsel at the address shown in
the first paragraph of this letter.
Should any litigation having any effect upon the
Initial Obligation develop prior to the time you have received
payment for it, I will notify you at once by telephone or by
telegraph. You may thus be assured that there is no such
litigation at the time the Initial Obligation is delivered by
you unless you have been advised otherwise as provided herein.
Thank you for your assistance in this matter.
Very truly yours,
City of
Texas
-2-
3061Z
February 20, 1990
Ms. Arlene Chisholm
Bond Registration Division
Comptroller of Public Accounts
111 East 17th Street
Austin, Texas 78774
Re: $850,000 "City of Schertz, Texas Combination Tax and
Limited Pledge Revenue Certificates of Obligation,
Series 1990", dated February 1, 1990.
Dear Ms. Chisholm:
The Initial Certificate prepared in connection with
the captioned financing will be delivered to you by the
Attorney General, when approved by him. We request that you
register the Initial Certificate on behalf of the City and,
when so registered, hand deliver it, along with the approving
opinion of the Attorney General, to First City, Texas--Austin
N.A., 816 Congress Avenue, Tenth Floor, Austin, Texas 78701,
Attn: Ms. Marcia Southworth, for further handling under our
instructions to them.
We further request that three copies of the approving
opinion of the Attorney General, together with the
Comptroller's registration certificate, be mailed directly to
the off ices of Fulbright & Jaworski, 300 Convent St reet, Sui te
2200, San Antonio, Texas 78205, Attn: W. Jeffrey Kuhn.
Thank you for your assistance in this matter.
Very truly yours,
E ~/~/I/L~
Mayor,
City of Schertz, Texas
3059Z
RECEIPT
THE STATE OF TEXAS
~
~
~
~
~
~
COUNTIES OF GUADALUPE,
COMAL, AND BEXAR
CITY OF SCHERTZ
THE UNDERSIGNED HEREBY CERTIFIES that:
1. This receipt is executed
respect to the "CITY OF SCHERTZ, TEXAS
LIMITED PLEDGE REVENUE CERTIFICATES OF
1990", dated February 1, 1990, in the
amount of $850,000 (the Certificates).
Certificates is the City of Schertz,
Guadalupe, Carnal, and Bexar Counties, Texas
and delivered with
COMBINATION TAX AND
OBLIGATION, SERIES
aggregate principal
The issuer of the
Texas, located in
(the Ci ty).
2. On the date shown hereof, the Certificates were
delivered to the initial purchaser:
3. All of the Certificates have been paid for in
full by the initial purchaser concurrently with the delivery of
thi s receipt, and the Ci ty has received the agreed purchase
price for the Certificates, as follows:
PRINCIPAL AMOUNT .................. $ 850,000
ACCRUED INTEREST.... ..............
PREMIUM (DISCOUNT) ................
TOTAL AMOUNT RECEIVED ON
DELIVERY ................... $
4. The undersigned has executed this receipt in the
capacity hereinafter shown for and on behalf of the City.
EXECUTED AND DELIVERED, this
_fl't~
Ci ty Manager,
City of Schertz, Texas
3057Z
LD Newspaper Group
PUBLISHER'S AFFIDAVIT
(COUNTY OF BEXAR)
(STATE OF TEXAS)
I, Bill Lindemann, publisher of the HERALD NEWSPAPER GROUP, do
solemnly swear that the notice, a printed copy of which i5
attached, wa5 published once a week for 2
consecutive
week(s) in the
HERALD
published at
Universal City, Bexar County, Texas on the following daters) to
wit:
JANUARY 31, 1990
&
FEBRUARY 7, 1990
&{ ::-;t:,?~
HERALD NEWSPAPER GROUP
Qu,,[h ~,~l-.\"')^r
NOTARY PUBL SIGNATURE
PAUlA J SCHLEIN
Notary Public
STATE OF 1EXAS
My CommiSSIon Expirel
January 29, 1994
PAULA J. SCHLEIN
Notary Public Printed or
Typed Name
My Commission Expire5: 1-29-94
122 East Byrd
P,O, Box 2789
Universal City. Texas 78148
(512) 658-7424
-
NOTICE OF INTENTION TO ISSUE
CITY OF SCHERTZ, TEXAS
CERTIFICATES OF OBLIGATION
-
TAKE NOTICE that the City Council (the Counci I) of
the City of Schertz, Texas (the City), shall convene at
7:00 o'clock P.M. on the 20th day of February, 1990, at its
regular meeting place in the City Hall of the City, and, during
such meeting, the Council will consider the passage of an
ordinance authorizing the issuance of certificates of
obligation in an amount not to exceed $850,000 for the purpose
of paying contractual obligations of the City to be incurred
for making permanent public improvements and for other public
purposes, including (1) purchase of rights-of-way for street
improvements, (2) purchase of land for an animal control
facility, (3) construction of public works, including
construction of a building or buildings and acquisition of
equipment therefor for an animal control facility, (4) purchase
of land and an existing building for a public works service
center facility and renovation and improvement thereof and
acquisition of equipment therefor, or purchase of land and
construction of a building and acquisition Of equipment for a
public works service center facility, (5) purchase of police
vehicles and communications equipment, and (6) payment for
professional services. The certificates of obligation will be
payable from the levy of an annual ad valorem tax, within the
limitations prescribed by law, upon all taxable property within
the City and from a lien on ~nd pledge of certain net revenues
of the City's combined waterworks and sewer system. The
certificates of obligation are to be issued, and this notice is
given, under and pursuant to the provisions of the Certificate
of Obligation Act of 1971, as amended, Local Government Code
Section 271.041 through Section 271.063, Texas Revised Civil
Statutes Annotated Articles 1111 through 1118, as amended,
Texas Revised Civil Statutes Annotated Article 1175, as
amended, and the Home Rule Charter of the City.
r
City Secr tary,
City of Schertz, Texas
NOTICE OF INTENTION TO ISSUE
CITY OF SCHERTZ, TEXAS
CERTIFICATES OF OBLIGATION
TAKE NO'l,'ICE that the Ci ty Council (the Counci I) of
.the City of SChertz, Texas (the City).. shall convene at
7:00 o'clock P.M'. dn the 20th day of February, 1990, at its
regular meeting place in the City Hall of the City, and, durin~
such meeting, the Council will. consider the/passage of an
ordinance authorizing the issuance. of certificates of
obligation in 'an amount not to ~ceed $850,000 'for the purpose
of paying contractual obligations of the City to be incurred
for llIaking permanent public improv~nts and for other public
purposes, inCluding (1) purchas.,';c1f rights-of-way for street
improvements, (2) purchase of ,land. for an animal COntrol
facility, (3) construction of public works, inCluding
construction of a building or buildings and acquisition of
equipment therefor for an animal control facility, (4) purchase
of land and an existing building for a ,public works service
center facility and renovation and improvement thereof and
acquisition of equipment therefor, or purchase of land and
construction of a bui 1ding and acquisition. of equipment for a
public works service center facility, (5) purchase of police
vehicles and communications equipment, and (6) payment for
professional services. The certificates of obligation will be
payable from the levy of an annual ad valoremtn;, within the
limitations prescribed by law, upon all taxable property within
the City and from a lien on and pledge of certain net revenues
of the City's combined waterworks and sewer system. The
certificates of obligation are to be issued, and this notice is
given, under and,pursuant to the provisions of the Certificate
of Obligation Act of 1971, as amended, Local Government Code
Section 271.041 through Section 271.063, Texas Revised Civil
Statutes Annotated Articles 1111 through 1118, as amended,
Texas Revised Civil Statutes Annotated Article 1l.75, as
amended, and the Home Rule Charter of the City.
)
'----.". ./
City Seer tary,
City of Schertz, Texas
I
RAUSCHER PIERCE REFSNES,INC.
March 13; 1990
Ms. Freda S. Johnso-
Executive Vice P ldent and Director
Information ter
Moody's estors Service
99 Ch Street
Ne ork, New York 10007
Re: CITY OF SCHERTZ, TEXAS
Dear Ms. Johnson:
We enclose herewith your request for information from the above-referenced City.
We issued $850,000 City of Schertz, Texas, Combination Tax and Limited Pledge
Revenue Certificates of Obligation on February 20,1990, to which your company
assigned a "Baa-I" rating.
You have all of the current information and documentation within your files.
With best regards, I remain,
Yours ~
;:Ji::::~::derliteh
Vice President
TMNrgj
Enclosure
cc: Mv1ti~e Krause
~ty S~cretary
City of Schertz
1600 NCNB Plaza. 300 Convent. San Antonio, Texas 78205 . (512) 225-6611
Member New York Stock Exchange, Inc.