1981B9- AUTHORIZING THE ISSURANCE OF $150,000 PRINCIPAL AMOUNT
-#5/-13- 7
AN ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS,
AUTHORIZING THE ISSUANCE OF $150,000 PRINCIPAL AMOUNT
OF CERTIFICATES OF OBLIGATION OF SAID CITY TO BE KNOWN
AS "CITY OF SHCERTZ, TEXAS, COMBINATION TAX AND JUNIOR LIEN
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1981" FOR THE
PURPOSE OF PAYING CONTRACTUAL OBLIGATIONS TO BE INCURRED
IN CONSTRUCTING IMPROVEMENTS, EXTENSIONS, ENLARGEMENTS
AND REPAIRS TO THE CITY'S WATERWORKS SYSTEM; PRESCRIBING
THE MATURITIES OF SAID CERTIFICATES AND THE INTEREST RATES
PROVIDING THAT SAID CERTIFICATES SHALL BE PAYABLE FROM
THE PROCEEDS OF AD VALOREM TAXES AND CERTAIN NET REVENUES
OF THE CITY'S UTILITY SYSTEM; PROVIDING THE FORM OF SAID
CERTIFICATES; CONFIRMING THE SALE OF SAID CERTIFICATES;
AND Ml\KING OTHER PROVISIONS PERTAINING TO THE SUBJECT
AND PURPOSE OF THIS ORDINANCE.
* * * * * * * * * * * * * * * * * * * * * * * *
WHEREAS, the City Council of the City of Schertz, Texas,
has heretofore determined that it is necessary to construct
certain improvements, extensions, enlargements and repairs
to the City's Waterworks System (hereinafter referred to
as "water system improvements"); and
WHEREAS, the City Council finds and determines that the
construction of said water system improvements will constitute
a public work; and
WHEREAS, the City Council, having found and determined that
the City does not have available unencumbered funds for the
purpose of making such improvements, and further found and
determined that it will be in the best interest of the City
and its residents to issue and sell certificates of obligation
for such purpose; and
WHEREAS, the City Council caused Notice of Intention to
Issue Certificates of Obligation to be published in a newspaper
of general circulation in said City once a week for two (2)
consecutive weeks, the date of the first publication of said
Notice being not less than fourteen (14) days prior to the date
set forth in said Notice that the City Council tenatively proposes
to authorize the issuance of said certificates of obligation; and
'"
WHEREAS, the City Council finds and determines that no
petition has been filed with the City Secretary, the Mayor,
any councilmember or any other official of the City of
Schertz, Texas, protesting the issuance of said certificates
or requesting that an election be held on the question of the
issuance thereof; and
WHEREAS, the City Council now desires to authorize the
issuance of said certificates of obligation and to make and
provide for their sale and delivery; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF SCHERTZ, TEXAS:
Section 1:
That for the purpose of acquiring funds to
pay contractual obligations to be incurred in connection with
the construction of improvements, extensions, enlargements and
repairs to the City's waterworks system and to pay engineer's
fees, financial advisor's fees and legal fees incurred in
connection therewith, there shall be and there is hereby ordered
to be issued under and by virtue of Article 823, Articles 1111
to 1118, inclusive, and Articles 2368a.l, Texas Revised Civil
Statutes, a series of certificates of obligation of the City
of Schertz, Texas, to be known as "CITY OF SCHERTZ, TEXAS,
COMBINATION TAX AND JUNIOR LIEN REVENUE CERTIFICATES OF
OBLIGATION, SERIES 1981" in the principal amount of $150,000.
Section 2: That said certificates of obligation shall
be numbered from one (1) to thirty (30), both inclusive, in
the denomination of Five Thousand Dollars ($5,000) each.
Section 3:
That said certificates shall be dated
FEBRUARY 1, 1981,shall bear interest at the rates and shall
become due and payable serially on February 1 of each of the
years as shown in the following schedule, to-wit:
CERT. NO. DATE OF INTEREST
(Both Incl. ) MATURITY AMOUNT RATES
1 1983 $ 5,000 10.00 ~
0
2 1984 5,000 10.00 0
'6
3 1985 5,000 10.00 %
4 1986 5,000 10.00 %
5 1987 5,000 10.00 0
'6
6 1988 5,000 10.00 %
7 1989 5,000 10.00 %
8 - 9 1990 10,000 10.00 %
10 11 1991 10,000 10.00 0
'6
12 - 13 1992 10,000 9.90 0
0
14 - 15 1993 10,000 9.30 %
--~-
16 - 17 1994 10,000 9.50 %
18 - 19 1995 10,000 9.70 0
0
20 - 22 1996 15,000 9.90 %
23 - 26 1997 20,000 10.00 0
0
27 - 30 1998 20,000 10.00 g.
0
PROVIDED, HOWEVER, the City of Schertz, Texas, reserves the
right to redeem the certificates of this series maturing
February 1, 199E and subsequent, in whole or in part (but in
inverse numerical order if less than all), on February 1, 1995,
or on any interest payment date thereafter, at the price of
par and accrued interest to the date of redemption; PROVIDED,
FURTHER, that at least thirty (30) days prior to a date any
of said certificates are to be redeemed, a notice of redemption,
singed by the City Secretary (specifying the serial numbers and
amount of certificates to be redeemed), shall have been filed
with the SCHERTZ STATE BANK, Schertz, Texas (the paying agent
named in each of said certificates); and if the City shall
have made available by the date of redemption funds in amounts
sufficient to pay the certificates to be redeemed and accrued
interest thereon, any certificate or certificates not presented
for redemption pursuant to such notice shall cease to bear interest
from and after the date so fixed for redemption.
Section 4:
That said certificates shall bear interest from
date to maturity at the per annum rates shown above; such interest
to be evidenced by proper coupons attached to each of said certificatef
and said interest shall be payable on February 1, 1982, and semi-
annually thereafter on August 1 and February 1 in each year.
Section 5: That both principal of and interest on this
issue of certificates shall be payable in lawful money of the
United States of America, without exchange or collection charges
to the owner or holder, at the Schertz State Bank, Schertz, Texas,
upon presentation and surrender of certificates or proper coupons.
Section 6: That the seal of said City may be impressed on
each of said certificates, or in the alternative, a facsimile
of such seal may be printed on the said certificates. The
certificates and interest coupons appurtenant thereto may be
executed by the imprinted facsimile signatures of the Mayor
and City Secretary of the City and execution in such manner
shall have the same effect as if such certificates or coupons
had been signed manually by the Mayor and City Secretary.
Inasmuch as such certificates are required to be registered by
the Comptroller of Public Accounts for the State of Texas, only
his signature (or that of a deputy designated in writing to
act for the Comptroller) shall be required to be manually
subscribed to such certificates in connection with his registration
certificate to appear thereon, as hereinafter provided, all in
accordance with the provisions of Article 7l7j-l, V.A.T.C.S.
Section 7: That the form of said certificates shall be
substantially as follows, to-wit:
NO.
$ 5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTIES OF GUADALUPE, BEXAR AND COMAL
CITY OF SCHERTZ, TEXAS,
COMBINATION TAX AND JUNIOR LIEN REVENUE
CERTIFICATE OF OBLIGATION,
SERIES 1981
* * * * * * * * * * * * * * * * * * * * * * *
KNOW ALL MEN BY THESE PRESENTS: That the City of Schertz,
Texas, a municipal corporation duly incorporated and existing
under the laws of the State of Texas, FOR VALUE RECEIVED,
acknowledges itself indebted to and hereby promises to pay to
bearer
FIVE THOUSAND DOLLARS
($5,000) in lawful money of the United States of America, on the
1st day of February, 19________ with interest thereon from date
hereof at the rate of
PERCENT (
%) per
annum, said interest being payable on February 1, 1982 and semi-
annually thereafter on August 1 and February 1 of each year, upon
presentation and surrender of certificate or properly annexed
interest coupon as they severally mature.
BOTH PRINCIPAL OF AND INTEREST ON this certificate are
hereby made payable without exchange or collection charges to
the holder at SCHERTZ STATE BANK, SCHERTZ, TEXAS, and for
the prompt payment of the interest on this certificate and
the principal thereof at maturity, the full faith, credit and
resources of the City of Schertz, Texas, are hereby irrevocably
pledged.
THIS CERTIFICATE is one of a series of like tenor and
effect (except as to number, maturity, interest rate and right
of prior redemption), numbered consecutively from One (1) to
Thirty (30), both inclusive, in the denomination of Five
Thousand Dollars ($5,000) each, aggregating the principal
sum of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000), issued
for the purpose of obtaining funds to pay contractual obligations
incurred or to be incurred in the making of certain improvements,
extensions, enlargements and repairs to the City's Waterworks System,
and to pay engineer's fees, financial advisor's fees, legal fees and
other incidental expenses incurred in connection therewith, under
and in strict conformity with the Constitution and laws of the
State of Texas, particularly Articles 833, 1111 to 1118,
inclusive, and Article 2368a.l, Texas Revised Civil Statutes,
and in accordance with an ordinance duly passed by the City
Council of the City of Schertz, Texas, which ordinance is of
record in the minutes of said City Council.
THE DATE of this certificate, in conformity with the
ordinance above referred to is FEBRUARY 1, 1981.
AS SPECIFIED in the ordinance hereinabove mentioned, the
City reserves the right to redeem the certificates of said
series maturing February 1, 1996 and subsequent, in whole or in
part (but in inverse numerical order if less than all), on
February 1, 1995, or on any interest payment date thereafter,
at the price of par and accrued interest to the date of
redemption; PROVIDED, HOWEVER, that at least thirty (30) days
prior to a date any of said certificates are to be redeemed, a
notice of redemption, signed by the City Secretary (specifying
the serial numbers and amounts of bonds to be redeemed), shall
have been filed with the SCHERTZ STATE BANK, SCHERTZ, TEXAS; and
if the City shall have made available by the date of redemption
funds in amounts sufficient to pay the certificates to be
redeemed and accrued interest thereon, any certificate or
certificates not presented for redemption pursuant to such
notice shall cease to bear interest from and after the date
so fixed for redemption.
THIS CERTIFICATE and the series of which it is a part are
payable from a levy of ad valorem taxes upon all taxable
property in said City, and are further payable from and secured
by a lien on and pledge of certain Net Revenues derived from
the operation of the City's Combined Waterworks and Sanitary
Sewer Systems (after first making all payments required by
the ordinances authorizing the issuance of the outstanding
bonds of said City entitled CITY OF SCHERTZ, TEXAS, UTILITY
SYSTEM REVENUE BONDS, SERIES 1968, dated March 1, 1968, the
outstanding bonds of said City entitled CITY OF SCHERTZ, TEXAS,
UTILITY SYSTEM REVENUE BONDS, SERIES 1973, dated April 1, 1973,
the outstanding bonds of said City entitled CITY OF SCHERTZ,
TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES 1975, dated
March 1, 1975, and the CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM
REVENUE BONDS, SERIES 1981, dated February 1, 1981, now in the
process of issuance (the "First Lien Bonds"); and provided
Iurther that in the event of the later acquisition of an electric
light and power and/or natural gas system, then this certificate,
and the series of which it is a part, shall be further payable
from and secured by a lien on the revenues of certain Net
Revenues derived from the operation of the City's Combined
Waterworks, Sanitary Sewer, Electric Light and Power and/or
Natural Gas Systems (after first making all payments required
by the ordinances authorizing issuance of the aforesaid First
Lien Bonds.
THE CITY, however, expressly reserves the right to issue
additional obligations on a parity with and payable from the
same revenues as the aforesaid First Lien Bonds and further
reserves the right to issue additional obligations on a parity
with certificates of this series and payable from the same
source or sources of Net Revenues and/or taxes securing the
payment of this certificate and the series of which it is a
part; provided, however, that any and all such additional
parity obligations may be issued only in accordance with and
subject to the covenants, conditions, liens and restrictions
relative thereto, which are set out in the ordinances
authorizing the issuance of said First Lien Bonds and/or the
ordinance authorizing this series of Certificates, to which
ordinances reference is hereby made for more complete and
full particulars.
IT IS HEREBY CERTIFIED AND RECITED that the issuance of
this certificate, and the series of which it is a part, is duly
authorized by law; that all acts, conditions and things required
to be done precedent to and in the issuance of this series of
certificates of obligation, and of this certificate, have been
properly done and performed, and have happened in regular and
due time, form and manner as required by law; that sufficient and
proper provision for the levy and collection of taxes has been
made, which tax~s, when collected, shall be appropriated
exclusively to the payment of this series of certificates and
to the payment of the interest coupons thereto annexed as the
same shall become due; that further provision for the payment
of the principal of and interest on this certificate and the
series of which it is a part has been made by irrevocably
pledging the above mentioned Net Revenues; and that the total
indebtedness of said City, including this certificate and
the series of which it is a part, does not exceed any
Constitutional or statutory limitations.
IN WITNESS WHEREOF, the City of Schertz, by its City
Council, has caused the corporate seal of said City to be
impressed or a facsimile thereof to be printed hereon, and
this certificate to be executed by imprinting hereon the facsimile
signatures of the Mayor of the City of Schertz, Texas, and
countersigned by imprinting hereon the facsimile signatures of
the City Secretary of said City, and the interest coupons hereto
attached to be executed by the imprinted facsimile signatures
of said Mayor and City Secretary (all in accordance with the
provisions of Article 717j-l, Revised Civil Statutes of Texas,
as amended), as of the date of Lhis bond, the 1ST DAY OF
COUNTERSIGNED:
LP Q":.1
;/ 7ayor m ty
1/
\..
xas
FEBRUARY, 1981.
City Secretary, City of Schertz, Texas
(SEAL OF CITY)
Section 8:
That the form of said interest coupons shall
be substantially as follows:
NO.
$
ON THE FIRST DAY OF
, 19
*(Unless the certificate to which this coupon appertains
has been redeemed in accordance with its terms), the City
of Schertz, in the Counties of Guadalupe, Bexar and Comal,
State of Texas, hereby promises to pay to bearer, out of
funds specified in the certificate to which this coupon
is attached, the amount shown hereon in lawful money of
the United States of America, upon presentation and
surrender of this coupon, at the Schertz State Bank,
Schertz, Texas, without exchange or collection charges,
such amount being interest due on such date on CITY OF
SCHERTZ, TEXAS, COMBINATION TAX AND JUNIOR LIEN REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1981, dated February
1, 1981, Certificate No.
City Secretary Mayor
The expression in parentheses to be included
*NOTE TO PRINTER:
only in coupons maturing on August 1, 1995 and subsequent
pertaining to optional certificates maturing in the years 1996
through 1998.
Section 9:
That substantially the following shall be
printed on the back of each certificate:
OFFICE OF THE COMPTROLLER 5
REGISTER NO.
STATE OF TEXAS
5
I HEREBY CERTIFY that there is on file and of record in my
office a certificate of the Attorney General of the State of
Texas to the effect that this certificate has been examined by
him as required by law, and that he finds that it has been
issued ~n conformity with the Constitution and laws of the State
of Texas, and that it is a valid and binding obligation of the
City of Schertz, Texas, payable from ad valorem taxes and the
revenues pledged to its payment by and in the ordinance authorizing
same, and said certificate has this day been registered by me.
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas, this
Comptroller of Public Accounts of
the State of Texas
Section 10:
That, for the purpose of this ordinance, the
following words and terms shall mean and include, and are
hereby defined as follows:
(a) City - shall mean and refer to the City of Schertz,
Texas, and where appropriate, the City Council of said City.
(b) System or Systems - shall mean and refer to the
combined Waterworks and Sanitary Sewer System of the City of
Schertz, Texas, and in the event of the later acquisition of an
electric light and power and/or natural gas system, then the
combined Waterworks, Sanitary Sewer, Electric Light and Power
and/or Natural Gas Systems, including all present and future
extensions, additions, replacements and improvements thereto,
whether situated within or without the limits of the City.
(c) Net Revenues - as such term is used in this Ordinance
shall mean and include the gross revenues derived from the
operation of the System less the reasonable expense of maintenance
and operation of said System, including all salaries, labor, materials
inter~st, repairs and extensions necessary to ~ender efficient
service, and every proper item of expense, as required by
Article 1113, Revised Civil Statutes of Texas, as amended, and
after deducting such sums as are necessary to meet the
requirements set forth in the ordinances authorizing the issuance
of the Series 1968 Bonds, the Series 1973 Bonds, the Series 1975
Bonds and the Series 1981 Bonds.
(d) Series 1968 Bonds - shall mean and refer to the $579,000
CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES
1968, dated March 1, 1968, authorized by ordinance of said City.
(e) Series 1973 Bonds - shall mean and refer to the $165,000
CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES
1973, dated April 1, 1973, authorized by ordinance of said City
passed and adopted on May 1, 1973.
(f) Series 1975 Bonds - shall mean and refer to the $325,000
CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES
1975, dated March 1, 1975, authorized by ordinance of said City
passed and adopted on March 12, 1975.
(g) Series 1981 Bonds - shall mean and refer to the $475,000
CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES
1981, dated February 1, 1981, authorized by an ordinance of
said City passed and adopted on March 16, 1981.
(h) Additional Parity Obligations - shall mean and include
any additional bonds or certificates of obligation which the
City expressly reserves the right to issue in Section 13 of
this ordinance.
Section 11: That a special fund designated CITY OF SCHERTZ,
TEXAS, COMBINATION TAX AND JUNIOR LIEN REVENUE CERTIFICATES OF
OBLIGATION, SERIES 1981 INTEREST AND SINKING FUND (also referred
to herein as CERTIFICATE FUND), is hereby created and all monies
deposited therein shall be used to pay the interest on these
certificates and additional parity obligations and the
principal thereof at maturity and for no other purpose.
That to provide for the payment of the debt service
requirements for the certificates, being (a) the interest on
said certificates; and (b) a sinking fund for their redemption
at maturity or a sinking fund of two percent (2%) per annum
(whichever amount is greater), there shall be and there lS
hereby levied, for the current year and each succeeding year
tehreafter while the certificates or any interest thereon
shall remain outstanding and unpaid, a tax on each One Hundred
Dollar ($100) valuation of all taxable property in said City,
adequate to pay such debt service requirements. The taxes so
levied and collected shall be paid into the Certificate Fund.
The City Council hereby declares its purpose to provide and
levy a tax legally and fully sufficient to pay the said debt
service requirements as required by Article XI, Section 7 of
the Constitution of the State of Texas, with full allowance
being made for delinquencies and cost of collection, it having
been determined that the existing and available taxing authority
of the City is adequate to permit the levy and collection of
a legally sufficient tax, taking into consideration all other
outstanding obligations of the City.
The City shall each year include in its annual tax levy a
tax sufficient to meet the requirements of this ordinance. The
City may, in determining the tax rate necessary to comply with
this ordinance, take into consideration the amount then on
deposit in the Certificate Fund after giving effect to principal
and interest payments remaining in the then current fiscal year
(which amount shall hereinafter be referred to as the "Adjusted
Balance"). The annual tax rate so established must be
sufficient to produce revenues in an amount which, when added
to the Adjusted Balance, will be sufficient to pay all principal
and interest requirements coming due on the next succeeding
fiscal year.
The City, ~n adopting its budget for each succeeding fiscal
year, shall take into consideration the following factors in
its determination of the amount of net revenues to be applied
to the payment of debt service:
1. The amount of principal and interest scheduled to
become due in the next succeeding fiscal year.
2. The amount on deposit in the Certificate Fund at the
time of the adoption of the City's budget after giving effect
to any principal and interest payments remaining in the
current fiscal year.
3. The amount of net revenues projected as being available
for the payment of debt service in the next succeeding
fiscal year.
Section 12: Net revenues from the operation of the System
are hereby irrevocably pledged to the payment of these certificates
and any additional parity obligations when issued in compliance
with law and the terms and conditions of this ordinance. The
City covenants and stipulates that it will deposit all revenues
derived from the operation of the System into a special fund
heretofore created by the City and herein confirmed and called
the System Fund. The monies paid into said fund shall be used
for the following purposes and in the following order of
precedence:
FIRST: From the monies in the System Fund, the City shall
first pay expenses of operation and maintenance of the System,
including all salaries, labor, repairs and other proper items
of expense necessary to keep the System in operation and to
render efficient serVlce.
SECOND: The City next shall make all payments and deposits
required to be made in the ordinances authorizing the Series 1968
Bonds, the Series 1973 Bonds, the Series 1975 Bonds and the
Series 1981 Bonds.
THIRD: The City shall pay into the Certificate Fund during
each year that these certificates or any additional parity
obligations are outstanding and unpaid, an amount equal to the
total payments falling due during the next succeeding fiscal
year of the City. Such amounts shall be paid into the Certificate
Fund each year in substantially equal monthly installments from
the monies in the System Fund to the extent required by this
ordinance. If the net revenues in any month shall be insufficient
to make the required payments into the Certificate Fund, then
the amount of any such deficiency shall be added to the amount
otherwise required to be paid into the Certificate Fund for the
next month. The monies in the Certificate Fund shall be used
solely for the purpose of paying interest on and principal of
these certificates and any additional parity obligations until
the same shall have been retired in full.
FOURTH: After all requirements set forth in the first three
provisions of this Section 12 have been satisfied, and all
deficiencies in this Section 12 have been remedied, any funds
remaining in the System Fund may be used for any lawful purpose.
Section 13: That the City reserves the right to issue
additional obligations on a parity with the Series 1968 Bonds,
the Series 1973 Bonds, the Series 1975 Bonds and the Series
1981 Bonds when issued in compliance with law and the terms
and conditions set forth in the ordinances authorizing said
Bonds. The City further reserves the right to issue additional
obligations on a parity with these certificates when issued in
compliance with law and the terms and conditions hereinafter
appearing; such additional parity obligations, when so issued,
shall occupy a position of parity and equal dignity with these
certificates and shall be equally secured by the same lien on
and pledge of the net revenues of the System as is enjoyed
by these certificates. The City hereby covenants and agrees
that no additional prior lien bonds or parity obligations
payable in whole or in part from the net revenues of the System
shall be issued on a parity with these certificates unless and
until the following conditions have been met, to-wit:
(a) The City is not then in default as to any covenant,
condition or obligation contained in this ordinance.
(b) That the laws of the State of Texas in force at such
time provide for the issuance of such additional parity obligations.
Such additional parity obligations, when issued in accordance
with the above, may be secured in whole or In part by a pledge
of the net revenues of the System on a parity with the pledge
securing these certificates, and the provisions of this ordinance
relating to the use of revenues shall be applicable to such
additional parity obligations as though the same were a part of
this original authorization. The right to issue such additional
parity obligations shall exist as often as the need therefor
shall arise and so long as such additional parity obligations
are issued in compliance with law and the terms and conditions
contained in this ordinance.
Section 14:
That the City further covenants and agrees to
maintain the System in good condition and operate the same in
an efficient manner and at a reasonable cost.
Section 15:
That the City covenants and agrees that it will
maintain a proper and complete system of records and accounts in
which complete and correct entries shall be made pertaining to
the net revenues, and that the owner or holder of these certificates
or the duly authorized agent or agents of such owner or holder
shall have the right at all reasonable times to inspect all such
records and accounts, and to inspect the System and all properties
comprising same. The City further agrees that it will cause an
audit of such books and accounts to be made by an independent firm
of Certified Public Accountants during each fiscal year.
section 16: That the City hereby further covenants and
warrants as follows:
(a) That it has the lawful power to pledge the net revenues
supporting the obligations authorized and permitted hereunder
and it has lawfully exercised such power under the Constitution
and laws of the State of Texas.
(b) That other than for the payment of the Series 1968 Bonds,
the Series 1973 Bonds, the Series 1975 Bonds, the Series 1981
Bonds and the obligations authorized herein, the rents, revenues,
returns and income of the System and associated properties and
facilities have not in any manner been pledged to the payment
of any other debt or obligation of the City; and that the System
is free and clear of all other encumbrances whatsoever,
except as hereinabove stated.
Section 17: That, in addition to any other rights and
remedies provided by the laws of the State of Texas, the City
further covenants and agrees that in the event of default in
the payment of principal of or interest on any of the obligations
authorized and permitted hereby when due, or failure to make the
payments required into the Certificate Fund, or defaults in the
observance or performance of any of the covenants, conditions
or obligations set forth in this ordinance, the owner or owners
of any of the obligations authorized or permitted hereby shall be
entitled to apply for a writ of mandamus to a court of proper
jurisdiction for the purpose of compelling and requiring the City
and the officials thereof to observe and perform any covenants,
obligations or conditions prescribed in this ordinance. No delay
or omission to exercise any right or power accruing upon any
default shall impair 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 as
oten as may be deemed expedient. The specific remedies provided
herein shall be cumulative of all other existing remedies, and the
specification of such remedies shall not be deemed to be exclusive.
section 18: That each of the certificates herein authorized
shall be deemed and construed to be a "security" and as such,
a negotiable instrument within the meaning of Article 8 of the
Uniform Commercial Code.
Section 19: Arbitr~~ Bon~Covenant - That the City hereby
represents and certifies that based on facts, estimates and
circumstances expected to exist on the date of the issue
of the certificates it is not reasonable to anticipate that the
proceeds thereof will be used in a manner which would cause
them to be "arbitrage bonds" within the meaning of Section
103(c) of the Internal Revenue Code of 1954, as amended, or
the regulations thereunder applicable thereto, and the officers
of the City charged with the responsibilities in the issuance of
the certificates are authorized and directed to make, execute and
deliver certifications as to facts, estimates and circumstances
in existence as of the date of the issue of the certificates and
stating whether to the best of their knowledge and belief there
are any facts, estimates or circumstances which would materially
change the City's present expectations. The covenants herein
made and the certifications herein authorized are for the benefit
of the holders from time to time of the certificates and the
coupons appertaining thereto and may be relied upon by said
holders and by bond counsel.
Section 20: That the City hereby retains the right to issue
refundinq bonds to refund all or any part of its outstanding
8ombination tax and revenue certificates of obligation as permitted
by and in accordance with any lawful method thereunto appertaining,
it being provided, however, that no refunding bonds shall be issued
which shall enjoy a lien on the net revenues superior to that
possessed by these certificates or refunding bonds that shall be
made to mature or bear interest in such manner or at such rates
as will impair the security or interfere with the timely payment
of principal or interest of the certificates not refunded.
Section 21: None of the proceeds from the sale of the
certificates herein authorized will be used to pay for work done
by employees of the City of Schertz, Texas, and paid for as such work
progresses.
Section 22: That the Mayor is hereby authorized to take and
have charge of all of the necessary records pending investigation
by the Attorney General of the State of Texas, and registration
by the Comptroller of Public Accounts of the State of Texas.
When the certificates have been registered, said Comptroller
is hereby authorized and instructed to deliver the certificates
to the Mayor, or to his order or agent, and to take a receipt
therefor.
Section 23: Confirmation of Sale - That the bid of
UNDERWOOD, NEUHAUS & CO., INC.
for the certificates at the price of par and accrued interest to
the date of delivery, having been heretofore accepted, the
sale of the certificates is hereby coufi~med to said purchaser,
aud the Mayor and City Manager of the City of Schertz are hereby
authorized, directed and instructed to do all things necessary
to deliver these certificates to said purchaser at THE CITY
NATIONAL BANK OF AUSTIN, AUSTIN, TEXAS, at the aforesaid price,
and it is hereby officially FOUND, DETERMINED AND DECLARED that
said purchaser is the highest bidder for said certificates as a
result of competitive bids having been st'bmitted to this City
Council in response to public advertisement therefor made.
Section 24: Invaliditv of Part of Ordinance - That, if ~ny
secrion, paranranh, ~lallse nr provisinn of this ordinan~e shall
be beld to be invalid for any reason, the invalidity thereof
shall not affect any of the remaininq sectiops, paragraphs, clauses
or provisions of this ordinance.
Sectinn 25: Emerqency Clause - That the public importance
of this measure and the prAssing need of the Citv to obtain
funds for the purposes set forth in Section 1 of this ordinance,
for the immediate preservation of the public peace. health and
safetv of the citizens of said City. constitute and create an
uroent public necessitv requirinq that this ordinance be passed
and take effect as an emergenc" me~sure, and this ordinance
is accordinqly passed as cn emergency measure, and shall take
effect and be in force immediately from and after its passage.
Section 26: Printing of Legal Opinion on Certificates - That
the purchaser above named having purchased the certificates herein
authorized subject to the final opinion of Messrs. Dumas,
Huguenin, Boothman & Morrow, Attorneys at Law, San Antonio, Texas,
approving the validity of such bonds, which approving opinion is
to be dated as of the date of payment for and delivery of the
certificates herein authorized, the printing of a true and correct
copy of said approving opinion on the reverse side of each of
said certificates with an appropriate certificate pertaining
thereto executed by the facsimile signature of the City Secretary
of the City of Schertz is hereby approved and authorized.
Section 27: CUSIP Numbers - That CUSIP numbers may be
printed on the certificates.
It is expressly provided, however,
that the presence or absence of CUSIP numbers on the 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 on the certificates.
PASSED, ADOPTED AND APPROVED this, the 7th day of April, 1981.
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of Scher z, Texas
ATTEST:
City of Schertz, Texas
(SEAL OF CITY)