1975B7- IMPROVE AND EXTEND THE WATERWORKS SYSTEM
THE STATE OF TEXAS
x
COUNTY OF GUADALUPE
x
CITY OF SCHERTZ
x
On this, the 12th day of March, 1975, at 7:00 o'clock
P.M., the City Council of the City of Schertz, Texas, convened
for a special meeting in the Municipal Building of said City, which
meeting was at all times open to the public, and the roll was called
of the duly constituted officers and members of said City Council,
namely:
ROBERT C. BUEKER
MRS. NELL G. FUNK
ROBERT E. SCHWARTZ
DONALD J. SEEBA
MRS. BOBBIE L. KOCH
TOM KOOLE
MAYOR
COUNCILWOMAN
COUNCILMAN
COUNCILMAN
COUNCILWOMAN
COUNCILMAN
AND
DENNY ARNOLD
MRS. JUNE G. KRAUSE
CITY MANAGER
CITY SECRETARY
There being a quorum present, the meeting was called
to order by the Mayor, and among other proceedings had were the
following:
The Mayor introduced the following captioned ordinance
~~}(ad in full by the City Secretary. Councilmember
, ? (;;~'j6--d._-) moved that said ordinance be considered
by the ouncil as an emergen~measure. Said motion was seconded
by Councilmember 71Lv I:1e.M {)'f-~/L ; whereupon said motion
was fully discussed and considered. The Mayor put the motion to
consider said motion as an emergency measure to the members of
the Council and said motion was approved and adopted by the fol-
lowing vote:
AYES:
All members of said City Council
shown present above voted "AYE11
NOES:
None.
The
Mayor then introduced the hereinafter set forth or-
emergenc~easure. Thereupon it was moved by Coun-
/1 j}--J. 4J.J-<-<-f, and seconded by Councilmember
that said ordinance be finally passed and adop-
~ut the motion to a vote of the members of the
ordnance was finally passed and adopted by the
dinance as an
9)ilmember J)u'1LJ
f &1 - c)Ul:
ted. The Mayor
Council and the
following vote:
AYES:
All members of said City Council
shown present above voted lIAYE"
NOES:
None.
AN ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, AUTHORIZING
THE ISSUANCE OF $325,000 PRINCIPAL AMOUNT OF SPECIAL OBLIGATION
BONDS OF THE CITY OF SCHERTZ TO BE KNOWN AS "$325,000 CITY OF
SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES 1975," FOR
THE PURPOSE OF SECURING FUNDS IN THE AMOUNT OF $275,000 TO BE
USED TO ~KPROVE AND EXTEND THE WATERWORKS SYSTEM OF SAID CITY
AND FOR THE PURPOSE OF SECURING FUNDS IN THE AMOUNT OF $50,000
TO BE USED TO IMPROVE AND EXTEND THE SANITARY SEWER SYSTEM OF
SAID CITY; PRESCRIBING THE MATURITIES OF SAID BONDS AND THE IN-
TEREST RATES; PRESCRIBING THE FORM OF SAID BONDS AND THE INTER-
EST COUPONS; PLEDGING THE NET REVENUES OF THE CITY'S COMBINED
WATERWORKS AND SANITARY SEWER SYSTEMS TO PAY THE PRINCIPAL OF
AND INTEREST ON SAID BONDS; PROVIDING THAT IN THE EVENT OF A LA-
TER ACQUISITION OF AN ELECTRIC LIGHT AND POWER SYSTEM AND/OR A
NATURAL GAS SYSTEM, SAID BONDS, THE PREVIOUSLY ISSUED BONDS, AND
ANY OR ALL REVENUE BONDS ISSUED FOR THE PURPOSE OF ACQUIRING ANY
SUCH SYSTEM (EITHER OR BOTH), SHALL BE PAYABLE FROM AND EQUALLY
SECURED BY A FIRST LIEN ON AND PLEDGE OF THE NET REVENUES OF THE
CITY'S COMBINED WATERWORKS, SANITARY SEWER, ELECTRIC LIGHT AND
POWER AND/OR NATURAL GAS SYSTEMS; PROVIDING THAT SAID BONDS SHALL
OCCUpy A POSITION OF PARITY AND EQUAL DIGNITY WITH THE OUTSTANDING
"CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES
1973," DATED APRIL 1, 1973, THE OUTSTANDING "CITY OF SCHERTZ,
TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES 1972," DATED MARCH 1,
1972, AND THE OUTSTANDING .CITY OF SCHERTZ, TEXAS UTILITY SYSTEM
REVENUE BONDS, SERIES 1968," DATED MARCH 1, 1968; PROVIDING FOR
ADDITIONAL PARITY BONDS; PROVIDING THAT THE HOLDER OR HOLDERS
OF SAID BONDS SHALL NEVER HAV~THF. RIGHT~Q~M~NQ_PAYMENT OF
SAID BONDS OUT OF ANY FUNDS RAISED, OR TO BE RAISED, BY TAXATION;
CONFIRMING THE SALE OF SAID BONDS; DECLARING AN EMERGENCY; AND
MAKING CERTAIN FINDINGS AND COVENANTS AND ENACTING OTHER PROVISIONS
INCIDENT AND RELATING TO THE SUBJECT AND PURPOSE OF THIS ORDI-
NANCE.
WHEREAS, heretofore on the 2nd day of July, 1974, the
City Council of the City of Schertz, Texas, by an ordinance duly
and legally passed, called an election to be held in said City on
the 27th day of July, 1974, for the purpose of submitting to the
resident qualified electors of said City, for their action there-
upon, the following propositions, to-wit:
PROPOSITION NO. 1
"Shall the City Council of the City of Schertz, Texas,
be authorized to issue SEVEN HUNDRED FIFTY THOUSAND
DOLLARS ($750,000) of revenue bonds of said City for
the purpose of securing funds to be used for ~~P.:r._9_Y-.:!d1.g.
and extending the Waterworks System of said city; said
bonds to mature serially over a period not to exceed
forty (40) years from their date, as may be determined
by the City Council of said City; and any issue or series
of said bonds to bear interest per annum at any rate
or rates as shall be determined within the discretion
of the City Council of said City, provided that such
rate of interest shall not exceed the maximum rate per
annum authorized by law at the time of the issuance
of any issue or series of said bonds; said revenue bonds
to be special obligations of the City of Schertz, Texas,
payable both as to principal and interest solely from
and secured by a first lien on and pledge of the reve-
nues of the City's combined Waterworks and Sanitary
Sewer systems, after deduction of reasonable operation
and maintenance expenses, as such expenses are defined
by statute; and in the event of the later acquisition
by said City of its Electric Light System and Natural
Gas System, either or both, to then and thereupon and
thereafter have all of such bonds, including those revenue
bonds that may be issued in the acquisition of said
Electric Light System and/or Natural Gas System, payable
both as to principal and interest solely from and secured
by a first lien on and pledge of the net revenues of
the City's combined Waterworks and Sanitary Sewer and
Electric Light and/or Natural Gas System; and in the
event that the City Council of said City shall also
be authorized to issue the revenue bonds submitted in
proposition No.2, then and in that event, to issue
combined revenue bonds of the City of Schertz in the
aggregate principal amount so authorized by both Proposition
No. 1 and Proposition No.2 and in such manner that
said aggregate amount of such revenue bonds shall be
ratably secured by a first lien on and pledge of the
net revenues from the operation of the City's combined
Waterworks and Sanitary Sewer System, and in the event
of the later acquisition by said City of its Electric
Light and/or System and Natural Gas System, either or
both, to then and thereupon and thereafter have all
of such bonds, including those bonds that may be issued
in the acquisition of said Electric Light and/or Natural
Gas System, payable both as to principal and interest
solely from and secured by a first lien on and pledge
of the net revenues of the City's combined Waterworks
and Sanitary Sewer and Electric Light and/or Natural
Gas System; each such bond to be on a parity and equal
dignity with the other bonds; and each such bond that
is issued to be conditioned so that the holder thereof
shall never have the right to demand payment of said
obligation out of any funds raised, or to be raised,
by taxation; all in accordance with and as authorized
by the Constitution and laws of the State of Texas,
including Articles 1111 to 1118, both inclusive, Revised
Civil Statutes of Texas, as amended?"
.
PROPOSITION NO. 2
"Shall the City Council of the City of Schertz, Texas,
be authorized to issue FIFTY THOUSAND DOLLARS ($50,000)
of revenue bonds of said City for the purpose of securing
funds to be used for improving and extending the Sanitary
Sewer System of said City; said bonds to mature serially
over a period not to exceed forty (40) years from their
date, as may be determined by the City Council of said
City; and any issue or series of said bonds to bear
interest per annum at any rate or rates as shall be
determined within the discretion of the City Council
of said City, provided that such rate of interest shall
not exceed the maximum rate per annum authorized by
law at the time of the issuance of any issue or series
of said bonds; said revenue bonds to be special obligations
of the City of Schertz, Texas, payable both as to principal
and interest solely from and secured by a first lien
on and pledge of the revenues of the city's combined
Waterworks and Sanitary Sewer Systems, after deduction
of reasonable operation and maintenance expenses, as
such expenses are defined by statute; and in the event
of the later acquisition by said City of its Electric
Light System and Natural Gas System, either or both,
to then and thereupon and thereafter have all of such
bonds, including those revenue bonds that may be issued
in the acquisition of said Electric Light System and/or
Natural Gas System, payable both as to principal and
interest solely from and secured by a first lien on
and pledge of the net revenues of the City's combined
Waterworks and Sanitary Sewer and Electric Light and/or
Natural Gas System; and in the event that the City Council
of said City shall also be authorized to issue the revenue
bonds submitted in Proposition No.1, then and in that
event, to issue combined revenue bonds of the City of
Schertz in the aggregate principal amount so authorized
by both Proposition No. 1 and Proposition No. 2 and
in such manner that said aggregate amount of such revenue
bonds shall be ratably secured by a first lien on and
pledge of the net revenues from the operation of the
Cityls combined Waterworks and sanitary Sewer System,
and in the event of the later acquisition by said City
of its Electric Light System and Natural Gas System,
either or both, to then and thereupon and thereafter
have all of such bonds, including those bonds that may
be issued in the acquisition of said Electric Light
and/or Natural Gas System, payable bo.th as to principal
and interest solely from and secured by a first lien
on and pledge of the net revenues of the City's combined
Waterworks and Sanitary Sewer and Electric Light and/or
Natural Gas System; each such bond to be on a parity
and equal dignity with the other bonds; and each such
bond that is issued to be conditioned so that the holder
thereof shall never have the right to demand payment
of said obligation out of any funds raised, or to be
raised, by taxation; all in accordance with and as authorized
by the Constitution and laws of the State of Texas,
including Articles 1111 to 1118, both inclusive, Revised
Civil Statutes of Texas, as amended?"
and
WHEREAS, this City Council affirmatively finds that
notice of said election was duly and legally given by publication
of a notice in a newspaper of general circulation in Schertz,
Texas; the date of the first publication being not less than four-
teen (14) days prior to the date of said election; and
WHEREAS, notice of said election was also given by
posting notices of said election at the City Hall of said City
and at two (2) other public places within said City, the date of
said posting being not less than fourteen (14) days prior to the
date of said election; and
WHEREAS, by ordinance duly passed on the 6th day of August,
1974, this City Council canvassed the returns of said election and
affirmatively found that it was authorized to issue the bonds in
accordance with the authority granted in the propositions and with
law; and
WHEREAS, the City Council heretofore examined into and
investigated the regularity of the proceedings of said election
and found that the same was duly and legally held, that the notices
required by law to be given had been duly and legally given and
that said election was conducted in conformity with all require-
ments of law; and
WHEREAS, the $750,000 of Waterworks Revenue Bonds and
the $50,000 Sanitary Sewer System Revenue Bonds authorized at said
election held on July 27, 1974, when issued are to be payable
solely from and secured by a first lien on and pledge of the net
revenues derived from the operation of the City's combined Water-
works and Sanitary Sewer Systems, and in the event of the later
acquisition of an electric light and power system and/or a natural
gas system, may also be secured by a pledge of the net revenues
of all of such combined Waterworks, Sanitary Sewer, Electric Light
and Power and/or Natural Gas Systems; and
WHEREAS, the City Council of said City now desires to
issue Utility System Revenue Bonds of the City of Schertz in the
principal amount of $325,000, for the purpose of securing funds
in the amount of $275,000 to be used to improve and extend the
Waterworks System of said City (being the first installment of
bonds authorized by and under Proposition No. 1 submitted at the
aforesaid election) and for the purpose of securing funds in the
amount of $50,000 to be used to improve and extend the Sanitary
Sewer System of said City, and that such bonds authorized by and
under this ordinance shall be authorized and issued in such a
manner that they shall occupy a position of parity and equal dig-
nity with the outstanding bonds of the Series 1968, Series 1972
and Series 1973 bonds; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS:
SECTION 1:
AMOUNT, PURPOSE, NAME AND AUTHORIZATION - That
for the purpose of securing funds in the amount of THREE HUNDRED
TWENTY-FIVE THOUSAND DOLLARS ($325,000), of which the sum of Two
Hundred Seventy-five Thousand Dollars ($275,000) is to be used to
improve and extend the Waterworks System of said City (being the
first installment of bonds authorized by and under Proposition No.
1 at an election held in said City on July 27, 1974) and of which
the sum of Fifty Thousand Dollars ($50,000) is to be used to im-
prove and extend the Sanitary Sewer System of said City, there
shall be issued Utility System Revenue Bonds of said City, to be
known as "$325,000 CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE
BONDS, SERIES 1975," in the aggregate principal amount of THREE
HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($325,000), under and pursu-
ant to the Constitution and laws of the State of Texas, including
particularly Articles 1111 to 1118, both inclusive, Revised Civil
Statutes of Texas, as amended, and the authority of the resident
qualified electors of the City of Schertz, at the aforesaid elec-
tion held on the 27th day of July, 1974.
SECTION 2:
DATE, NUMBERS, DENOMINATION, AMOUNT AND MATURITY
SCHEDULE - That said bonds shall be serial coupon bonds, shall be
dated MARCH 1, 1975, shall be numbered consecutively from One (1)
to Sixty-five (65), both inclusive, shall be in the denomination
of Five Thousand Dollars ($5,000) each, aggregating the principal
sum of THREE HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($325,000), and
shall become due and payable in each of the years and in the re-
spective amounts shown in the schedule as follows, to-wit:
BOND NOS.
(Both Incl.)
DATE OF MATURITY
AMOUNT
1
2
3
4
5
6
7
8
9
10
11 - 12
13 - 14
September 1, 1979
September 1, 1980
September 1, 1981
September 1, 1982
September 1, 1983
September 1, 1984
September 1, 1985
September 1, 1986
September 1, 1987
September 1, 1988
September 1, 1989
September 1, 1990
$ 5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
10,000
10,000
15 - 16
17 - 18
19 - 20
21 - 22
23 - 24
25 - 26
27 - 29
30 - 32
33 - 35
36 - 40
41 - 45
46 - 50
51 - 55
56 - 60
61 - 65
September 1, 1991
September 1, 1992
September 1, 1993
September 1, 1994
September 1, 1995
September 1, 1996
September 1, 1997
September 1, 1998
September 1, 1999
September 1, 2000
September 1, 2001
September 1, 2002
September 1, 2003
September 1, 2004
September 1, 2005
10,000
10,000
10,000
10,000
10,000
10,000
15,000
15,000
15,000
25,000
25,000
25,000
25,000
25,000
25,000
SECTION 3:
REDEMPTION PROVISION - That the City of Schertz
expressly reserves the right to redeem before maturity Bonds Nos.
15 to 65, both inclusive, being the bonds maturing September 1 in
the years 1991 through 2005, on any interest payment date on and
after September 1, 1990, by paying the principal and accrued in-
terest therefor to the interest payment date fixed for redemption;
and in case any of said Bonds Nos. 15 to 65, both inclusive, shall
be called for redemption before maturity, notice thereof shall be
given in writing to the SCHERTZ STATE BANK, SCHERTZ, TEXAS, at
least thirty (30) days before the interest payment date fixed for
redemption, and notice of such redemption shall be published at
least one time in a financial journal of general circulation in
the State of Texas, and should such bond, or bonds, not be presented
for redemption after the same have been properly called and notice
given as aforesaid and provisions for payment and redemption duly
made, the same shall cease to bear interest from and after the in-
terest payment date so fixed for redemption.
SECTION 4 : INTEREST RATES AND INTEREST PAYMENT DATES - That
said bonds shall bear interest per annum from their date until paid
at the following rates, respectively:
Bonds Nos. 1 to S-, both inc. , at the rate of Ii. 7S- % .
,
Bonds Nos. fa to ~O both ine.. , at the rate of 100 % .
,
Bonds Nos. ~I to {~i-, both ine.. , at the rate of r-r. t 0 %;
r;A~ '2-.0, ./
Bonds Nos.. to both inc.. , at the rate of '7h~ % .
,
Bonds Nos. d-I to tdJ both ine.. , at the rate of '{ , '-I 0 % .
,
said interest being payable on September 1, 1975, and semi-annually
thereafter on March 1 and September 1 of each year while said bonds
or any of them are outstanding, which interest shall be evidenced
by coupons attached to each of said bonds.
SECTION 5: PLACE OF PAYMENT - That said bonds shall be payable,
both as to principal and interest, in lawful money of the United
States of America, without exchange or collection charges to the
owners or holders of the bonds or interest coupons, at the SCHERTZ
STATE BANK, SCHERTZ, TEXAS.
The principal of such bonds shall be
payable only upon presentation and surrender of the bonds as they
respectively become due, and interest falling due on and prior to
the respective maturity dates of said bonds shall be payable only
upon presentation and surrender of the interest coupons attached to
said bonds as such coupons severally become due.
SECTION 6:
EXECUTION OF BONDS AND INTEREST COUPONS - That, in
accordance with the provisions of Article 7l7j-l, as amended, Revised
Civil Statutes of Texas, each of said bonds shall be executed by the
imprinted facsimile signature of the Mayor and countersigned by the
imprinted facsimile signature of the City Secretary of the City of
Schertz, Texas; and each of the interest coupons attached to said
bonds shall be executed by the imprinted facsimile signatures of
said Mayor and City Secretary; and such imprinted facsimile signa-
tures of said Mayor and said City Secretary shall have the same
effect as if such bonds and interest coupons had been manually
signed by each of said officials; and the City Secretary is hereby
authorized to cause the seal of said City to be imprinted in fac-
simile upon each of said bonds; and the imprinting of the seal of
said City on each of said bonds shall have the same legal effect
as the impression of the seal of said City on each of said bonds.
SECTION 7:
THE FORM OF THE BONDS - That the form of said
bonds 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,
UTILITY SYSTEM REVENUE BOND, SERIES 1975
******************************************************
FOR VALUE RECEIVED, the City of Schertz, a municipal
corporation of the State of Texas, hereby acknowledges
itself indebted to and hereby promises to pay to bearer,
as hereinafter stated, on the 1st day of September,
the sum of
FIVE THOUSAND DOLLARS
($5,000), in lawful money of the United States of America
with interest thereon from date hereof at the rate of
per cent
%) per annum until the
principal sum hereof shall have been paid; said interest
being payable on September 1, 1975, and semi-annually
thereafter on March 1 and September 1 of each year upon
presentation and surrender of bond or properly annexed
interest coupon as they severally mature.
BOTH PRINCIPAL OF and interest on this bond are here-
by made payable at the SCHERTZ STATE BANK, SCHERTZ, TEXAS,
without exchange or collection charges to the owner or
holder, and the City of Schertz is hereby held and firmly
bound to apply the pledged revenues of its combined Water-
works and Sanitary Sewer Systems to the prompt payment of
the principal of and interest on this bond, providing
that in the event of the later acquisition of an electric
light and power and/or natural gas system, the net reve-
nues of the City's combined Waterworks, Sanitary Sewer,
Electric Light and Power and/or Natural Gas Systems shall
be and are hereby pledged to pay the principal of and
interest on this bond as the same matures.
(NOTE TO PRINTER: Insert here in Bonds Nos.
15 to 65, both inclusive, the redemption
paragraph which is Section 8 hereof)
THIS BOND is one of a series of sixty-five (65)
bonds of like tenor and effect (except as to number, in-
terest rate, maturity and right of prior redemption),
numbered consecutively from one (1) to Sixty-five (65),
both inclusive, in the denomination of Five Thousand
Dollars ($5,000) each, aggregating the principal amount
of THREE HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($325,000),
of which the sum of $275,000 is to be used to improve
and extend the Waterworks System of the City of Schertz,
and of which the sum of $50,000 is to be used to improve
and extend the Sanitary Sewer System of said City, in
accordance with the Constitution and laws of the State
of Texas, including Articles 1111 to 1118, both inclusive,
Revised Civil Statutes of Texas, as amended, and pursuant
to an ordinance passed by the City Council of the City of
Schertz, Texas, which ordinance is duly recorded in the
Mintues of said City Council.
THE DATE of this bond, in conformity with the ordi-
nance above referred to is MARCH 1, 1975.
THIS BOND and the series of which it is a part con-
stitute special obligatiomof the City of Schertz, Texas,
and together with the outstanding bonds of said City en-
titled CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE
BONDS, SERIES 1968, dated March 1, 1968, the outstanding
bonds of said City enritled CITY OF SCHERTZ, TEXAS,
UTILITY SYSTEM REVENUE BONDS, SERIES 1972, dated March 1,
1972, and the outstanding bonds of said City entitled
CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE BONDS,
SERIES, 1973, dated April 1, 1973, are payable both as
to principal and interest solely from and are secured by a
first lien on and pledge of the revenues of the City's
combined Waterworks and Sanitary Sewer Systems, after
deduction of reasonable expenses of operation and main-
tenance; providing that in the event of the later ac-
quisition of an electric light and power and/or a natural
gas system, and the issuance of revenue bonds in con-
nection therewith, then These Bonds, the Series 1973
Bonds, the Series 1972 Bonds and the Series 1968 Bonds
together with any such revenue bonds shall be payable
from and equally secured by a first lien on and pledge
of the net revenues of the City's combined Waterworks,
Sanitary Sewer, Electric Light and Power and/or Natural
Gas Systems.
THE CITY, however, expressly reserves the right to
issue, in addition to the bonds for the electric light
and power and/or natural gas system purposes, further
and additional bond obligations, in all things on a
parity with the bonds of this series and the aforesaid
outstanding bonds, and payable from and equally secured
by a first lien on and pledge of the net revenues of the
city's combined Waterworks, Sanitary Sewer, Electric
Light and Power and/or Natural Gas Systems; PROVIDED,
HOWEVER, that any and all such additional parity bonds
may be issued only in accordance with and subject to the
covenants, conditions, limitations and restrictions re-
lating thereto, which are set out and contained in the
ordinances authorizing said Series 1968 Bonds, said
Series 1972 Bonds, said Series 1973 Bonds and These Bonds,
to which said ordinances reference is hereby made for
more complete and full particulars.
EACH HOLDER of this bond, payable to bearer, or of
the interest coupons hereto attached, is conclusively
presumed to forego and renounce his equities in favor
of subsequent holders for value without notice, and to
agree that, being payable to bearer, this bond and each
of the interest coupons attached may be negotiated by
delivery, however possession may be acquired, and that
any subsequent holder or holders who may receive this
bond, or any of the interest coupons attached, for value
without notice, has thereby acquired absolute title,
free from all equities
and claims of ownership of any
prior holder.
The City of Schertz, Texas, its officers
and the paying agent shall not be affected by any notice
to the contrary.
THE HOLDER HEREOF shall never have the right to de-
mand payment of this obligation out of any funds raised,
or to be raised, by taxation.
AND IT IS HEREBY CERTIFIED AND RECITED that the
issuance of this bond, and the series of which it is a
part, is duly authorized by law; that all acts, conditions
and things required to exist and to be done precedent to
and in the issuance of this bond, and the series of which
it is a part, to render the same lawful and valid, have
been properly done, have happened and been performed in
regular and due time, form and manner, as required by
the Constitution and laws of the State of Texas, and the
ordinance hereinabove mentioned; that this series of
revenue bonds does not exceed any constitutional or
statutory limitation, and that provision has been made
for the payment of the principal of and interest on this
bond, and the series of which it is a part, by irrevo-
cably pledging the net revenues of the City's combined
Waterworks and Sanitary Sewer Systems and, in the event
of the later acquisition of an electric light and power
and/or natural gas system, the net revenues of the com-
bined Waterworks, Sanitary Sewer, Electric Light and
Power and/or Natural Gas Systems of said City.
IN WITNESS WHEREOF, the City of Schertz, Texas, by
its City Council, has caused the corporate seal of said
City to be imprinted hereon in facsimile, and this bond
to be executed by imprinting hereon the facsimile signa-
ture of the Mayor of the City of Schertz, Texas, and
countersigned by imprinting hereon the facsimile signa-
ture of the City Sceretary of said City, and the interest
coupons hereto attached to be executed by the imprinted
facsimile signatures of said Mayor and said City Secre-
tary (all in accordance with the provisions of Article
7l7j-l, Revised Civil Statutes of Texas, as amended),
as of the date of this bond, the 1ST DAY OF MARCH, 1975.
MAYOR, City of Schertz, Texas
COUNTERSIGNED:
CITY SECRETARY
(SEAL OF CITY)
SECTION 8:
REDEMPTION PARAGRAPH IN CERTAIN BONDS - That each
of said Bonds Nos. 15 to 65, both inclusive, shall contain on its
face these words (being the redemption paragraph):
THE CITY of Schertz, Texas, hereby expressly reserves
the right to redeem this bond before maturity on any
interest payment date on and after September 1, 1990, by
paying the principal of and accrued interest therefor
to the interest payment date fixed for redemption; and
in case this bond shall be called for redemption before
maturity, notice thereof shall be given in writing to
the SCHERTZ STATE BANK, SCHERTZ, TEXAS, at least thirty
(30) days before the interest payment date fixed for
redemption and notice of such redemption shall be pub-
lished at least one time in a financial journal of
general circulation in the State of Texas; and should
this bond not be presented for redemption after the
same is properly called and notice given as aforesaid
and provisions for payment and redemption duly made,
the same shall cease to bear interest from and after
the interest payment date so fixed for redemption.
SECTION 9:
THE FORM OF THE INTEREST COUPONS - That the form
of said interest coupons shall be substantially as follows, to-wit:
NO.
$
ON THE 1ST DAY OF
,
*(unless the bond to which this coupon appertains
has been properly called for prior redemption
and provisions for payment and redemption
properly made in accordance with its terms,)
THE CITY OF SCHERTZ, a municipal corporation of the State
of Texas, hereby promises to pay to bearer, out of funds
specified in the bond to which this coupon is attached
(without right to demand payment out of any funds raised,
or to be raised, by taxation) and in lawful money of the
United States of America, without exchange or collection
charges at the SCHERTZ STATE BANK, SCHERTZ, TEXAS, the
sum of
DOLLARS ($
), said sum
being the interest due that day on "CITY OF SCHERTZ,
TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES 1975,.
dated March 1, 1975, Bond No.
City Secretary Mayor
* (NOTE TO PRINTER: The expression in the first
parentheses of the coupon form is to be inclu-
ded in coupommaturing on March 1, 1991, and
on all subs~quent coupons affixed to these bonds.)
SECTION 10:
FORM OF COMPTROLLER'S CERTIFICATE - That each
of said bonds shall be registered by the Comptroller of Public
Accounts of the State of Texas, as provided by law, and as to the
registration of such bonds, there shall be printed on the back
of each of said bonds substantially the following certificate,
which shall be manually signed by said Comptroller or by a deputy
designated in writing to act for said Comptroller, to-wit:
OFFICE OF THE COMPTROLLER X
X
STATE OF TEXAS X
REGISTER NO.
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 bond has been
examined by him as required by law and that he finds that
it has been issued in conformity with the Constitution
and laws of the State of Texas and that it is a valid
and binding special obligation of the City of Schertz,
Texas, payable from revenues pledged to its payment by
and in the ordinance authorizing same; and said bond
has this day been registered by me.
WITNESS MY HAND AND SEAL OF OFFICE AT AUSTIN, TEXAS,
this,
SECTION 11:
Comptroller of Public
Accounts of the State
of Texas
DEFINITIONS - That, for the purpose of this ordi-
nance, 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 Water-
works and Sanitary Sewer Systems 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 extension, additions, replace-
ments and improvements thereto, whether situated within or without
the limits of the City.
(c) Net Revenues - shall mean and include the gross revenues
derived from the operation of the System less the reasonable ex-
penses of maintenance and operation of said System, including all
salaries, labor, materials, interest, repairs and extensions ne-
cessary to render efficient service, and every proper item of
expense, as required by Article 1113, Revised Civil Statutes of
Texas, as amended; said repairs and extensions as used herein shall
mean and include only those as are found by the City to be neces-
sary to keep the System in operation and to render efficient ser-
-
vice, or necessary to meet or remedy some physical accident,
condition or defect which would otherwise impair the security
of the bonds herunder authorized.
(d) Series 1968 Bonds - shall mean and refer to the $579,000
of CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES
1968, dated March 1, 1968, authorized by ordinance of said City.
(e) Series 1972 Bonds - shall mean and refer to the $35,000
of CITY OF SCHERTZ, TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES
1972, dated March 1, 1972, authorized by ordinance of said City
passed and adopted on March 2, 1972.
(f) 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.
(g) Series 1975 Bonds or These 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 this ordi-
nance.
(h) Additional Parity Bonds - shall mean the additional
parity bonds which the City expressly reserves the right to issue
in SECTION 21 of this ordinance.
(i) Bonds Similarly Secured - shall mean the Series 1968
Bonds, the Series 1972 Bonds, the Series 1973 Bonds and These
Bonds and any and all additional parity bonds which are payable
from a first lien on and pledge of the net revenues of the System.
SECTION 12:
CONTINUING FISCAL YEAR; MAINTAINING SPECIAL FUNDS
HERETOFORE CREATED; AND APPLICATION OF REVENUES - That the System
shall continue to be operated on the basis of a fiscal year, the
fiscal year as presently established commencing on October 1 of
each year and ending on September 30 of the following year.
That
in accordance with the ordinances authorizing the issuance of the
series 1968 Bonds, the Series 1972 Bonds and the Series 1973 Bonds,
all revenues derived form the operation of the System shall be
kept separate from other funds of the City.
To that end, the fol-
lowing special funds heretofore created are hereby reaffirmed:
(a) City of Schertz Utility System Fund, hereinafter
called SYSTEM FUND.
depository bank.
(b) City of Schertz Utility System Revenue Bond Interest
This fund shall be kept in the City's
and Sinking Fund, hereinafter called INTEREST AND SINKING
FUND. This fund shall be deposited with the MAIN BANK AND
TRUST, SAN ANTONIO, TEXAS, as Trustee of the pledged revenues,
and shall be used to pay principal of and interest on the
bonds similarly secured when and as the same shall become
due and payable.
(c) City of Schertz Utility System Revenue Bond Reserve
Fund, hereinafter called RESERVE FUND.
This fund shall be
deposited with the MAIN BANK AND TRUST, SAN ANTONIO, TEXAS,
as Trustee, and shall be used to pay principal of or interest
on the bonds similarly secured falling due at any time when
there is not sufficient money available in the INTEREST AND
SINKING FUND.
SECTION 13:
SYSTEM FUND - All revenues of every nature re-
ceived through the operation of the System shall be deposited from
day to day as collected into the SYSTEM FUND, and the reasonable
and proper expenses of operating and maintaining the System as
set forth in section 11 (b) hereof shall be paid therefrom upon
approval of the City Council.
All revenues of the System not
actually required to pay expenses and costs incurred as permitted
by this Section shall be appropriated and used for the purposes
and in the order of precedence hereinafter set forth.
SECTION 14:
INTEREST AND SINKING FUND - In addition to the
deposits required to be made into the INTEREST AND SINKING FUND
by the ordinances authorizing the issuance of the Series 1968
Bonds, the Series 1972 Bonds and the Series 1973 Bonds, for the
payment of the principal and interest requirements of such bonds,
the City shall, on or before the 15th day of August, 1975, de-
posit in the INTEREST AND SINKING FUND an amount of money not less
than all of the interest to become due on the first installment
of interest on These Bonds (interest falling due on September 1,
1975); and thereafter on the 15th day of each month, commencing
/
with the 15th day of September, 1975, the City shall deposit in
said INTEREST AND SINKING FUND an amount of money not less than
one-sixth (1/6) of the next semi-annual installment of interest
to become due on These Bonds.
In addition, commencing on or be-
fore the 15th day of the twelfth month immediately next preceding
the first maturity of principal of These Bonds (being the 15th
day of August, 1978), the City shall deposit in the INTEREST AND
SINKING FUND an amount of money not less than one-twelfth (1/12)
of the installment of principal falling due on September 1, 1979,
and on the 15th day of each month thereafter until the bonds are
paid and retired, the City shall deposit in said INTEREST AND
SINKING FUND an amount of money not less than one-twelfth (1/12)
of the next maturing principal on These Bonds.
SECTION 15:
RESERVE FUND - After the requirements set forth
in SECTIONS 13 and 14 have been satisfi2d, and all deficiencies in
such requirements have been remedied, there shall be paid into the
RESERVE FUND on or before April 15, 1975, and on or before the 15th
._) - ,. f./-
day of each month thereafter, the sum of $ -",_' . per month until
there shall have been accumulated in said fuman amount of not
less than one and one-half (1-1/2) times the average annual prin-
cipal and interest requirements of all bonds secured by a first
lien on and pledge of the net revenues of the System.
When fully
accumulated in accordance herewith, no further payments need be
made into the RESERVE FUND, except whenever said fund is reduced
below such amount, monthly deposits shall be resumed as hereinafter
specified and continued until such time as the fund has been fully
restored.
Monies in the RESERVE FUND, at the option of the City,
may be invested in direct obligations of the United States of
America having maturities not in excess of ten years from the date
of making such investment, which securities shall be deposited and
held by the Trustee bank, and if at any time uninvested funds
shall be insufficient to permit payment of principal of or interest
on These Bonds or any of the bonds similarly secured when needed
for the purpose, said bank shall promptly sellon the open market
such amount of securities as is required to pay said interest
and/or principal when due, and shall give notice thereof to the
City.
Any money resulting from maturity of principal and/or of
interest on the securities in which the RESERVE FUND is invested
may be reinvested or accumulated in said RESERVE FUND and shall
be considered a part thereof, and used for and only for the purposes
specified herein with reference to said RESERVE FUND.
SECTION 16:
DEFICIENCIES IN FUNDS - If in any month the City
shall, for any reason, fail to pay into the INTEREST AND SINKING
FUND or the RESERVE FUND the full amounts above stipulated, amounts
equivalent to such deficiencies shall be set apart and paid into
said funds from the first available and unallocated revenues of
the following month or months and such payments shall be in addi-
tion to the amounts hereinabove provided to be otherwise paid into
said funds during such month or months.
M
SECTION 17:
EXCESS REVENUES - Any revenues in excess of those
required to fully establish and maintain the funds herein provided
may be used for the redemption of bonds similarly secured, or may
be transferred to the general fund of the City and used for general
or special purposes.
SECURITY OF FUNDS - All special funds heretofore
SECTION 18:
created and herein reaffirmed for which this ordinance makes pro-
vision (except any portions thereof as may be at any time properly
invested) shall be secured in the manner and to the fullest extent
required by the laws of the State of Texas for the security of
public funds, and such funds shall be used only for the purposes
permitted by this ordinance and the ordinances authorizing the
Series 1968 Bonds, the Series 1972 Bonds and the Series 1973 Bonds.
SECTION 19:
PLEDGE OF NET REVENUES - That These Bonds, to-
gether with the outstanding Series 1968 Bonds, the Series 1972
Bonds and the Series 1973 Bonds, (and any and all Additional Parity
Bonds when issued in accordance with the terms and provisions of
this ordinance and the ordinances authorizing the Series 1968 Bonds,
the Series 1972 Bonds and the Series 1973 Bbnds), shall be payable
solely from and secured by a first lien on and pledge of the Net
Revenues of the System; and These Bonds are issued on a parity
and equal dignity with said outstanding Series 1968 Bonds, the
Series 1972 Bonds and the Series 1973 Bonds; and the City hereby
irrevocably pledges all of the Net Revenues from the operation of
the System (with the exception of those amounts in excess of the
amounts required to maintain the funds hereinabove provided for)
to the payment of These Bonds, the Series 1973 Bonds, the Series
1972 Bonds and the Series 1968 Bonds (and any and all Additional
Parity Bonds when issued subject to the terms and provisions of
this ordinance and the ordinances authorizing the Series 1968
Bonds, the Series 1972 Bonds and the Series 1973 Bonds).
SECTION 20:
RATES AND CHARGES - That the City covenants and
agrees that it shall faithfully and punctually perform all duties
with reference to the System required by the Constitution and laws
of the State of Texas, and that so long as any of These Bonds, the
Series 1973 Bonds, the Series 1972 Bonds and the Series 1968 Bonds
(and any and all Additional Parity Bonds when issued), both as to
principal and interest, remain outstanding and unpaid, it shall
fix and maintain reasonable and sufficient rates and collect charges
for the facilities and services afforded by the System which will
produce income and revenues sufficient at all times to:
(a) Pay all operation, maintenance, depreciation, replace-
ment and betterment charges and expenses of the System;
(b) Fully maintain the hereinabove prescribed INTEREST AND
SINKING FUND and RESERVE FUND; and
(c) Pay all outstanding indebtedness against the System,
including These Bonds, the Series 1973 Bonds, the
Series 1972 Bonds and the Series 1968 Bonds (and any
and all Additional Parity Bonds) as and when the same
become due.
The City further covenants and agrees that no free ser-
vice shall be rendered by the System to any customers; and should
the City or any of its agencies or instrumentalities make use of
the services and facilities of the System, payment of the reasonable
value thereof shall be made by the City out of funds derived from
sources other than the revenues and income of the System.
SECTION 21:
ISSUANCE OF ADDITIONAL PARITY BONDS - That, (in
addition to the right to issue junior lien bonds, as authorized by
the laws of the State of Texas). the City reserves the right to
issue Additional Parity Bonds payable from the Net Revenues of the
System when issued in compliance with the law and the terms and
conditions hereinafter appearing; such Additional Parity Bonds
shall occupy a position of parity and equal dignity with These
Bonds, the Series 1973 Bonds, the Series 1972 Bonds and the Series
1968 Bonds, and such Additional Parity Bonds shall be equally
secured by a first lien on and pledge of the Net Revenues of the
System.
The Additional Parity Bonds, which the City reserves the
right to issue, may be issued in one or more installments, provi-
ded that the following conditions shall have been met:
(a) That the City is not then in default as to any cove-
nant, condition or obligation contained in the ordi-
nances authorizing the issuance of These Bonds, the
Series 1973 Bonds, the Series 1972 Bonds and the
Series 1968 Bonds;
(b) That the laws of the State of Texas in force at such
time provide for the issuance of such Additional
Parity Bonds;
(c) That each of the funds reaffirmed by this ordinance
contains the amount of money then required to be on
deposit therein;
(d) The Net Revenues of the System for the completed twelve
(12) months immediately preceding the adoption of the
ordinance authorizing the issuance of the Additional
Parity Bonds are equal to at least one and one-half
(1-1/2) times the average annual requirement for the
payment of principal and interest on the then outstand-
ing bonds and on the Additional Parity Bonds, as such
net revenues are shown by a report of a Certified
Public Accountant or a licensed public accountant.
The term "Net Revenues" as used in this SECTION shall
~
mean the gross revenues after deduction of expenses
of operation and maintenance, but not deducting
expenditures which, under standard accounting practice,
should be charged to capital expenditures; PROVIDED,
HOWEVER, that the requirement of this subparagraph
(d) shall not apply or be a condition to the right
of the City to issue bonds for the initial acquisi-
tion (by purchase or construction) of an electric
light and power and/or a natural gas system in and
for said City, but such bonds may be issued at any
time provided the City has secured a certificate
from an engineer registered by the State Board of
Registration for Professional Engineers of the
State of Texas, showing that the average annual net
income and revenues of the System (after providing
for adequate maintenance and operation expenses)
as estimated by him throughout the maturities of
all of such outstanding bonds, will be at least one
and one-half (1-1/2) times the average annual re-
quirements for the payment of principal of and in-
terest on all bonds to be payable from and secured
by a first lien on and pledge of the net revenues
of the System after giving effect to the issuance
of the proposed Additional Parity Bonds,
(e) The Additional Parity Bonds are made to mature on
September 1 in each of the years in which they
are scheduled to mature;
(f) The ordinance authorizing the issuance of the
Additional Parity Bonds provides for the accumula-
tion in the INTEREST AND SINKING FUND of amounts
sufficient to pay the principal of and interest
on such Additional Parity Bonds as the same
mature; and
(g) The ordinance authorizing the issuance of the
Additional Parity Bonds provides that the amount
to be accumulated in the RESERVE FUND shall be
not less than one and one-half (1-1/2) times the
average annual requirement for the payment of
principal of and interest on all bonds to be
secured by a first lien on and pledge of the net
revenues of the System after giving effect to
the issuance of the proposed Additional Parity
Bonds, and provided that any additional RESERVE
FUND amount which may thus be required shall be
accumulated within sixty (60) calendar months
from the date of the adoption of the ordinance
authorizing such proposed Additional Parity Bonds.
The term "Net Revenues. as used in this SECTION 21 shall
mean all of the net revenues of the System (excluding income re-
ceived specifically for capital items) after deduction of the
reasonable expenses of maintenance and operation of the System
(excluding expenditures for capital items).
SECTION 22:
ISSUANCE OF REFUNDING BONDS - That, if prior to
the payment and discharge of all of These Bonds, the Series 1973
Bonds, the Series 1972 Bonds and the Series 1968 Bonds, it shall
be found desirable to refund any of such bonds under the provisions
of any law then available, such first lien bonds or any part there-
of may be refunded with the consent of the holders thereof, (ex-
cept as to any bonds which are redeemable, and have been properly
called for redemption, in which case such consent shall not be
necessary), and the refunding bonds so issued shall enjoy complete
equality of lien with the portion of any of the first lien bonds
which is not refunded, if any there be, and such refunding bonds
shall continue to enjoy the same priority of lien as was enjoyed
by the bonds refunded; PROVIDED, HOWEVER, that if only a portion
of said bonds is refunded in such manner that the interest on the
refunding bonds is increased or any of the refunding bonds mature
at a date earlier than the maturity dates of any of the bonds not
refunded, then that portion of the first lien bonds desired to be
refunded may not be refunded without the consent of the holders
of the unrefunded portion of the first lien bonds then outstanding.
SECTION 23:
MAINTENANCE AND OPERATION - That the City hereby
covenants and agrees to maintain the System in good condition and
to operate the same in an efficient manner and at reasonable cost.
So long as any of the bonds similarly secured are outstanding,
the City agrees to maintain insurance for the benefit of the
holder or holders of such bonds of the kinds and in the amounts
which are usually carried by private companies operating similar
properties, and that during such time all policies of insurance
shall be maintained in force and kept current as to premium pay-
ments~
Monies received from losses under such insurance policies
other than public liability policies, are hereby pledged as securi-
ty for the bonds until and unless the proceeds are paid out in
making good the loss or damage in respect of which such proceeds
are received, either by replacing the property destroyed or by
repairing the property damaged or adequate provisions for making
good such loss or damage may be made within ninety (90) days from
the date of loss.
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 herein
shall be construed as preventing the City from doing so.
SECTION 24:
RECORDS AND ACCOUNTS AND FISCAL YEAR - That
the City hereby covenants and agrees that so long as any of the
bonds similarly secured or any interest thereon remain outstanding
and unpaid, it will keep and maintain a proper and complete system
of records and accounts pertaining to the operation of the System,
separate and apart from all other records and accounts in which
complete and correct entries shall be made and maintained of all
transactions relating to said System as provided by Article 1113,
Revised Civil Statutes of Texas, as amended.
Any holder of the
bonds similarly secured or any duly authorized agent or agents
of such holder or holders shall have the right at all reasonable
times to
inspect all such records, accounts, and data relating
thereto and to inspect the System and all properties comprising
same. The City further agrees that following close of each fiscal
year, it will cause an audit of such books and accounts to be
made by an independent Certified Public Accountant or a licensed
public accountant within sixty (60) days after the close of each
fiscal year.
Each such audit, in addition to what other matters
may be thought proper by the accountant, shall contain the following:
A statement of the income and expenditures of the
System for such fiscal year;
A balance sheet as of the end of such fiscal year;
The accountant's comments regarding the manner in which
the City has carried out the requirements of all ordi-
nances authorizing bonds then outstanding, and his re-
commendations for any change or improvement in the
operation, records and accounts of the System;
(d) A list of the insurance policies in force at the end of
J
(a)
J
j (b)
(c)
~
the fiscal year on the System properties, setting out
as to each policy the amount thereof, the risk covered
the name of the insurer, and the policy's expiration
date;
(el A list of the securities which have been on deposit as
security for the money in the INTEREST AND SINKING
FUND and the RESERVE FUND throughout the fiscal year,
a list of the securities, if any, in which the RESERVE
FUND has been invested, and a statement of the manner
in which the money in the SYSTEM FUND has been secured
in such fiscal year; and
(f) The number of properties connected to the System at
the end of the fiscal year.
Expenses incurred in making the audits above required
are to be regarded as maintenance and operation expenses and paid
as such.
Copies of the aforesaid annual audit shall be immediately
furnished to the Executive Director of the Municipal Advisory Coun-
cil of Texas, at his office in Austin, Texas, and to the original
holders of the bonds and any subsequent holder at his request.
At the close of the first six months' period of each fiscal year,
the City Secretary is hereby directed to furnish a copy of an
operating and income statement in reasonable detail covering such
period to any bondholder upon his request therefor received not
more than thirty (30) days after the close of said six month's
period.
Any bondholder shall have the right to discuss with the
accountant making the annual audit the contents thereof and to
ask for such additional information as he may reasonably require.
SECTION 25:
ARBITRAGE BOND AND DEPOSIT OF FUNDS COVENANTS -
That the City Council of said City hereby specially covenants
and agrees with the original owners and holders of the bonds autho-
rized hereby and with all subsequent owners and holders from time
to time of said bonds that:
(1) The City Council of said City will promptly proceed
to utilize the proceeds from the sale of said bonds
(other than accrued interest to date of delivery) for
the purpose set forth in SECTION 1 of this ordinance;
and
(2) No portion of the bonds hereby authorized is
issued as a part of an issue,
all or a major portion
of the proceeds of which are reasonably expected to
be used directly or indirectly
(a) to acquire securities (within the meaning of Section
165 (g) (2) (A) or (B) of the Internal Revenue Code) or
obligations other than obligations described in Section
103 (a) (1) of the Internal Revenue Code (except for a
temporary period of time to the extent permitted by
Section 103 (d) (4) (A) of the Internal Revenue Code)
which may be reasonably expected at the time of the
issuance of such issue to produce a yield over the
term of the issue which is materially higher (taking
into account any discount or premium) than the yield
on obligations of such issue, or
(b) to replace funds which were used directly or in-
directly to acquire securities or obligations described
in subparagraph (a).
(3 )
The City Council
of said City will take such action in
accordance with regulations prescribed from time to
time by the Secretary of the Treasury or his delegate
to carry out the purposes of Section 103 Cd) of the
Internal Revenue Code so that no portion of the
bonds authorized hereby shall be classified as an
"arbitrage bond" within the meaning of Section 103 (d)
of the Internal Revenue Code.
Specifically, but not
by way of limitation, said City Council covenants
that it will make no use of the proceeds of such bonds
at any time during the term thereof which would cause
such bonds to be arbitrage bonds within the meaning
of Section 103 (d) of the Code as interpreted by
Sections 1.103-13 and 1.103-14 of the regulations
promulgated for such purpose by the United States
Treasury Department interpreting such Code Section.
(4) Said City Council covenants that it will not permit
to be deposited to the credit of the SYSTEM FUND or
the INTEREST AND SINKING FUND or the RESERVE FUND
or applied to the payment of the principal of
or interest on the bonds authorized hereby, any
proceeds from any grant, donation or income re-
ceived from the United States Government whether
pursuant to agreement or otherwise, if such deposit
or application would result in interest payable
on said bonds being includable in whole or in
part in Gross Income, under Section 103 of the
Internal Revenue Code for Federal income taxes.
SECTION 26:
REMEDIES IN EVENT OF DEFAULT - That in addition
to all the rights and remedies provided by the laws of the State
of Texas, the City covenants and agrees that in the event the
City (a) fails to make the payments required by SECTIONS 14 and
15 of this ordinance to be made into the INTEREST AND SINKING
FUND and the RESERVE FUND, or (b) defaults in the observance or
performance of any other of the covenants, conditions or obligations
set forth in the ordinances authorizing the issuance of any of
the bonds similarly secured, the following remedies shall be available:
.,,~,
'i:'~
1;".:,.,
:1-,0:.
~~
(1) The holder or holders of any of the bonds similarly
secured shall be entitled to a writ of mandamus
issued by a Court of proper jurisdiction, compelling
and requiring the City Council and other officers
of the City to observe and perform any covenant,
obligation or condition prescribed by said ordinances.
(2) No delay or omission to exercise any right or power
accruing upon any default shall impair any such right
or power or shall be construed to be a waiver of any
such default or acquiescence therein, and every such
right and power may be exercised from time to time
and as often as may be deemed expedient.
The specific remedies herein provided shall be cumulative
of all other existing remedies, and the specification of such re-
medies shall not be deemed to be exclusive.
SECTION 27:
FURTHER COVENANTS - That the City further cove-
nants and agrees by and through this ordinance, as follows, to-
wit:
(a) That These Bonds, the Series 1973 Bonds, the Series
1972 Bonds and the Series 1968 Bonds (and any Addi-
tional Parity Bonds when issued), including the in-
terest coupons thereto attached, shall be special
obligations of the City, and the holder or holders
thereof shall never have the right to demand payment
of said obligations out of any funds raised, or to be
raised, by taxation;
(b) That it has the lawful power to pledge the revenues
supporting These Bonds, and has lawfully exercised
said power under the Constitution and laws of the
State of Texas, including the power existing under
Articles 1111 to 1118, both inclusive, as amended,
Revised Civil Statutes of Texas; that These Bonds
issued hereunder shall be ratably secured in such
manner that no one bond shall have preference over
any other bond of said issue; and that These Bonds
are issued on a parity and equal dignity with the
outstanding Series 1973 Bonds, Series 1972 Bonds
and the Series 1968 Bonds;
(c) That other than for payment of These Bonds, the Series
1973 Bonds, the Series 1972 Bonds and the Series 1968
Bonds, the rents, revenues and income of the System
are not in any manner pledged to the payment of any
debt or obligation of the City; and said System is
otherwise free and clear of all other liens and en-
cumbrances whatsoever; and
(d) That so far as it legally may do so, for the protection
and security of These Bonds, the Series 1973 Bonds,
the Series 1972 Bonds and the Series 1968 Bonds and
the holders thereof from time to time, the City will
not grant a franchise for the operation of any com-
peting waterworks or sewer system in the City until
all said bonds shall have been retired.
(e) That so long as any of the bonds similarly secured
or any interest thereon remain outstanding, the City
will not sell or encumber the System or any substan-
tial part thereof, and that with the exception of
the Additional Parity Bonds expressly permitted by
this ordinance to be issued, it will not encumber
the revenues thereof unless such encumbrance is made
junior and subordinate to all of the provisions of
this ordinance, (provided that this covenant shall
not b8 construed to prevent the disposal by the City
of property which in its judgment has become inex-
pedient to use in connection with the System when
other property of equal value has been substituted
therefor).
SECTION 28:
ORDINANCE TO CONSTITUTE CONTRACT - That the pro-
visions of this ordinance shall constitute a contract between the
City and the holder or holders from time to time of These Bonds,
and that after the issuance of any of These Bonds, no change, alter-
ation or variation of any kind of the provisions of this ordinance
may be made (except as herein otherwise provided), until all of
said bonds shall have been paid both as to principal and interest
SECTION 29:
BONDS AS NEGOTIABLE INSTRUMENTS - That each of
the bonds herein authorized shall be deemed and construed to be
a IISecurity'l and as such a negotiable instrument, within the
meaning of Article 8 of the Uniform Commercial Code.
SECTION 30:
DUTIES OF MAYOR - That the Mayor of the City is
hereby authorized to take and have charge of all necessary records
pending investigation by the Attorney General of the State of
Texas and shall take and have charge and control of These Bonds
pending approval by said Attorney General of the State of Texas,
and registration by the Comptroller of Public Accounts of the State
of Texas.
When These Bonds have been registered, said Comptroller
is hereby authorized and instructed to deliver These Bonds to THE
CITY NATIONAL BANK OF AUSTIN, AUSTIN, TEXAS, where they will be
taken up and paid for by the purchaser.
-,CTION 31: CON
-~'
/1 .
--Vl--/ [xl:~
~
SALE - That the bid of
e..Lt./Li:b.--C-t:~{j--<- D-i-a L,,~..
, 7~ayJ
for These Bonds at the price of par and accrued interest to the
such bonds, which approving opinion is to be dated as of the date
of payment for and delivery of the bonds herein authorized, the
printing of a true and correct copy of said approving opinion
on the reverse side of each of said bonds 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.
PASSED AND ENACTED this 12th day of March, 1975.
A// j /.) ~ ~
/"~~ L ~~_____
MAYOR, City of Schertz, Texas
ATTEST:
~~. . -U1;,n.w
Y SECRETAR1
(SEAL OF CITY)
OFFICIAL NOTICE OF SALE
CITY OF SCHERTZ, TEXAS
(Guadalupe, Bexar & comal Counties)
$325,000
UTILITY SYSTEM REVENUE BONDS
SERIES 1975
&
$235,000
GENERAL OBLIGATION
SERIES 1975
BONDS
Date of Sale:
March 12, 1975
Time:
7:00 P.M., C.D.S.T.
Place of Sale:
Council Chamber
401 Oak Street
Schertz, Texas 78154
CITY OFFICIALS
Hon. Robert C. Bueker
Robert E. Schwartz
Donald J. Seeba
Mrs. Bobbie L. Koch
Tom Koole
Mrs. Nell G. Funk
Mayor
Alderman
Alderman
Alder~JOman
Alderman
Alderwoman
Denny L. Arnold
June G. Krause
City Manager
City Secretary
Prepared by
TEXAS SECURITIES CORPORATION
5701 Broadway
San Antonio, Texas 78209
Financial Advisors to the City
OFFICIAL NOTICE OF SALE
$325,000
UTILITY SYSTEM REVENUE BONDS
SERIES 1975
&
$235,000
GENERAL OBLIGATION BONDS
SERIES 1975
of the
CITY OF SCHERTZ, TEXAS
(Guadalupe, Bexar & Comal Counties)
SELLING: Wednesday, March 12, 1975, at 7:00 P.M., C.D.S.T.
PLACE AND TIME OF SALE: The City Council of the City of Schertz,
Texas will receive sealed bids at the
Council Chamber, 401 Oak St., Schertz, Texas, 78154 until 7:00
P.M.,C.D.S.T. on Wednesday March 12, 1975 for the above bonds,
more completely described in the Official Notice of Sale which
is made a part hereof.
ADDRESS OF BIDS: Sealed bids, plainly marked "Bid For Bonds",
should be addressed to the Honorable Robert C.
Bueker, Mayor and City Council of the City of Schertz, Texas 78154.
All bids must be submitted on the"Official Bid Form".
TYPE OF BIDS AND INTEREST RATES: The bonds will be sold in two
separate blocks:
(1) $325,000 Utility System Revenue Bonds, Series 1975;(2) $235,000
General Obligation Bonds, Series 1975. Bids must be submitted for
all or none of the separate blocks bid upon. No bid of less L~an
par and accrued interest will be considered. Bidders must specify
the rate or rates of interest the bonds will bear. No more than
five separate rates or four coupon changes will be considered and
all bonds within a maturity must bear the same interest rate. The
difference between the highest rate bid and the lowest rate bid
shall not exceed 2%. Coupon rates must be in multiples of 1/8th
or 1/20th of 1%. Supplemental coupons will not be considered.
BASIS OF AWARD: The interest cost of each bid will be computed
by determining the total dollar value of all
interest on the bonds from the date thereof to their respective
maturities at the coupon rates specified therein, less any prauium
tendered. The bonds will be awarded to the bidder whose bid on
the above computation produces the lowest interest cost to the
City, subject to the right reserved to the City to reject any or
all bids.
-1-
GOOD FAITH DEPOSIT: Each bid must be accompanied by a Cashier's
Check payable to the City of Schertz, Texas:
(1) in the amount of $6,500.00 with bids for the $325,000 utility
System Revenue Bonds, Series 1975; (2) in the amount of $4,700.00
with bids for the $235,000 General Obligation Bonds, Series 1975.
The check of the successful bidder for each block will be considered
as a Good Faith Deposit and will be retained by the City to assure
performance of the contract on the part of the successful bidder.
In the event such bidder should fail or refuse to take up and pay
for the bonds in accordance with his bid, then said check shall be
cashed and accepted by the City as fUll,and complete liquidated
damages. The above mentioned Cashier's Checks may accompany the
"Official Bid Form" or they may be submitted separately; if sub-
mitted separately, they shall be made available to the payee prior
to the opening of the bids and shall be accompanied by instructions
by the banks on which drawn which authorizes its use as a good faith
deposit by the successful bidder who shall be named in such instruc-
tions.
PRINTED BONDS AND LEGAL OPINION: The City will furnish printed bonds
on lithographed borders with fac-
simile signatures, a complete transcript of proceedings had incident
to the authorization and issuance of the bonds, together with the
final unqualified approving opinion of Messrs. Dobbins, Howard &
Harris, Bond Attorneys, San Antonio, Texas. The legal opinion will
be printed on the back of each bond.
DELIVERY: The purchaser must agree to accept delivery of and make
payment for the bonds in immediately available funds,
when presented, at the City National Bank, Austin, Texas. If for
any reason the City is unable to make delivery within sixty (60)
days from the date of sale, the successful bidder may accept delivery
of the bonds at his option for the next succeeding thirty (30) days.
NO-LITIGATION CERTIFICATE: The City will execute, and deliver to the
successful purchaser, a certificate to
the effect that no litigation of any nature has been filed or is then
pending to restrain or enjoin the issuance or delivery of said bonds
or the coupons appertaining thereto, or which would affect the pro-
visions made for their payment or security, or in any manner question-
ing the validity of said bonds or coupons.
CUSIP NUMBERS: It is anticipated that CUSIP identification numbers
will be printed on said bonds, but neither the
failure to print such number on any bond nor any error with respect
thereto shall constitute cause for a failure or refusal by the
purchaser thereof to accept delivery of and pay for said bonds in
accordance with the terms of the purchase contract. All expenses
in relation to the printing of CUSIP numbers on said bonds shall
be paid for by the issuer; provided, however, that the CUSIP Service
Bureau charge for the assignment of said numbers shall be the res-
ponsibility of and shall be paid for by the purchaser.
-2-
THE CITY RESERVES THE RIGHT to reject any or all bids and to
waive any irregularities.
Additional copies of this Notice of Sale and Bid Forms may be
obtained from Texas Securities Corporation, 5701 Broadway, San
Antonio, Texas 78209, the City's Financial Consultants, or Mr.
Denny L. Arnold, City Manager, City of Schertz, Texas 78154.
/s/ ROBERT C. BUEKER
Mayor, City of Schertz, Texas
Dated: February 18, 1 9 7 5
-3-
INTEREST EXEMPT FROM ALL PRESENT FEDERAL INCOME TAXES
MOODY'S RATING
Preliminary Circular
"provisional BAA-l"
$325,000
CITY OF SCHERTZ, TEXAS
(Guadalupe, Bexar & Comal Counties)
UTILITY SYSTEM REVENUE BONDS, SERIES 1~75
Dated: March 1, 1975
Denomination: $5,000
Principal and semi-annual interest (September 1 & March 1)
payable at the Schertz State Bank, Schertz, Texas.
First interest coupon due September 1, 1975.
MATURITY SCHEDULE
(Due September 1)
Amount Rate Maturity Yield Amount Rate Maturity Yield
$ 5,000 1979 $10,000 1992*
5,000 1980 10,000 1993*
5,000 1981 10,000 1994*
5,000 1982 10,000 1995*
5,000 1983 10,000 1996*
5,000 1984 15,000 1997*
5,000 1985 15,000 1998*
5,000 1986 15,000 1999*
5,000 1987 25,000 2000*
5,000 1988 25,000 2001*
10,000 1989 25,000 2002*
10, 000 1990 25,000 2003*
10,000 1991* 25,000 2004*
25,000 2005*
(*) Bonds maturing September 1, 1991 and thereafter are to be optional
on September 1, 1990, or on any interest payment date thereafter
at par and accrued interest.
THESE BONDS were authorized at an election held on July 27, 1974, and
$275,000 being the first installment of $750,000 (for water-
works purposes) and $50,000 being the total amount authorized for sewer
purposes, constitute special obligations of the City of Schertz, Texas
and are payable solely from a first lien on and pledge of the revenues
of the City's combined Waterworks and Sanitary Sewer System, after de-
duction of reasonable expenses of operation and maintenance, as provided
by the General Laws of the State of Texas, particularly Articles 1111 to
1118, both inclusive, Revised Civil Statutes of Texas, as amended.
PROCEEDS from the sale of these bonds will be used for improving and
extending the Waterworks and Sanitary Sewer System of said
City.
-4-
PAYMENT RECORD: The City of Schertz, Texas, has never defaulted.
LEGALITY
Messrs. Dobbins, Howard & Harris, Bond Attorneys,
San Antonio, Texas, and the Attorney General of
the State of Texas.
DELIVERY
: When issued and received, expected on or about
April 2, 1975.
WATERWORKS & SEWER SYSTEM OPERATING STATEMENT
2-1-74
to
Year Endinq: 1-31-75** 9-30-74 9-30-73 9-30-72 9-30-71
Income $303,019 $267,897 $232,376 $174,923 $164,009
Expense 191,741 '171,995* 93,741 81,509 62,554
Available for
Debt Service $111,278 $ 95,902 $138,635 $ 93,414 $101,455
* Increase in Operating Expense due to Sewage Disposal Contract with
cibolo Creek Municipal Authority.
** Net Revenues for 12 months period ending 1-31-75 reflects Sewer
Rate increase that was put into effect on 10-1-1974.
Average Annual Principal and Interest Requirements
using an assumed rate of 7-1/2% on this issue -
1975-2005. .. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . .. .. . $ 68,430
Coverage of Average Annual Requirements by Net Income
for the 12 month period 2-1-74 through 1-31-75($111,278).... 1.63X
Coverage of Average Annual Requirement based upon
Engineer's Projection of Average Net Income avail-
able. 1975-2005 ($391,195) ................................ 5.72X
-5-
DEBT STATEMENT
(As of 1-31-75)
Waterworks and Sewer System Revenue Bonds outstanding
after the issuance of these bonds .....................
Less: Interest & Sinking, Reserve & Repair Funds ......
$1,010,000.00
81,020.00
NET DEBT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ 928,980.00
Net Debt Per Combined Connections (3,471) . . . . . . . . . . . . . . . $ 267.64
CONNECTIONS
9-30-74 9-30-73 9-30-72 9-30-71 9-30-70
Water 1,771 1,700 1,417 1,207 1,071
Sewer 1,701 1,640 1,317 1,116 1,024
Totals 3,471 3,340 2,734 2,323 2,095
WATER RATES
Residential (5/8" - 3/4"
First 3,000 gallons
Next 10,000 gallons
Next 10,000 gallons
Over 23,000 gallons
Service)
$4.00 (Min)
.60/M gals
.50/M gals
.35/M gals
Commercial (1" Service)
First 7,000 gallons
Next 10,000 gallons
Next 10,000 gallons
Over 27,000 gallons
$7.00 (Min)
.60/M gals
.50/M gals
.35/M gals
Commercial (1-1/2" Service)
First 10,000 gallons $12.50 (Min)
Next 10,000 gallons .60/M gals
Next 10,000 gallons .50/M gals
Over 30,000 gallons .35/M gals
SEWER RATES*
(Based on water consumption)
Residential
First 3,000
Next 12,000
OVer 15,000
gallons
gallons
gallons
$4.00 (Min)
. 45/M
No Charge
commercial
First 3,000 gallons
OVer 3,000 gallons
$5.00
.60/M gallons
(*) These Sewer Rates went into
effect on 10-1-1974.
-6-
CITY'S EQUITY IN WATERWORKS & SEWER SYSTEM
(As of 9-30-1974)
RESOURCES:
Utility Plant
Less: Depreciation
$ 1,268,364
239,763
Cash & Other
OBLIGATIONS:
Revenue Bonds
Less: Funds on Hand
$
685,000
81,020
Total Deductions
NET EQUITY ( 46.79%)
SOURCE OF WATER SUPPLY
The City presently secures water from two wells.
SPECIAL SEWAGE DISPOSAL CONTRACT
$ 1,028,601
106,482
$1,135,083
$ 603,980
$ 531,103
The City contracted with Cibolo Creek Municipal Authority in June
1973, and subsequently amended, whereby the Authority will take
the City's sewage at the rate of 549/M gallons of sewage.
REVENUE BONDS AUTHORIZED BUT UNISSUED
Date of
Authorization
Issued
To Date
Authorized
Purpose
7-18-70
Sewer
$ 600,000
-0-
7-27-74
750,000
275,000
Water
-7-
unissued
$ 600,000
475,000
BOND ORDINANCE PROVISIONS
The City covenants the usual protective features in a Revenue
Bond. Among other things, the ordinance authorizing the issuance
of these bonds will contain the following:
1. The City will agree to charge and collect rates suffi-
cient to pay all operation, maintenance, depreciation, replacement
and betterment expenses and to produce each year net revenues suffi-
cient to pay the principal of and interest on said bonds as they
become due.
2. All revenues derived from the operation of the system
will be kept separate from other funds of the City. The Reserve
Fund will provide for one year's average principal and interest
requirement on all outstanding bonds.
3. ADDITIONAL BONDS. The City reserves the right to issue
additional bonds payable from revenues of the system provided:
a. Interest & Sinking Fund, Reserve Fund and Emergency Fund
all contain the amount of money then required to be on
deposit.
b. For the completed twelve months immediately preceding
the adoption of additional bonds ordinance net revenues
shall have been not less than l~ times average annual
requirements, after giving effect of the additional
bonds. However, additional Parity Bonds for the purpose
of purchasing or constructing an electric light and
power system and/or a natural gas system may be issued
provided that a registered professional Engineer certi-
fies that the average annual net revenues of the system
will be at least l~ times average annual requirements,
after giving effect of the additional bonds.
-8-
$325,000
CITY OF SCHERTZ, TEXAS
UTILITY SYSTEM REVENUE BONDS, SERIES 1975
Present Proposed 7-1/2% Total
Year Outstanding New Issue Interest Due New Issue Reqmts
9-30 Requirements Due 9-1 9 - 1 & 3 - 1 Reqmts All Issues
1975 $ 56,393 $ $ 12,187.50 $ 12,187.50 $ 68,580.50
1976 55,468 24,375.00 24,375.00 79,843.00
1977 54,543 24,375.00 24,375.00 78,918.0C
1978 53, 618 24,375.00 24,375.00 77,993.0rj
1979 47,693 5,000 24,375.00 29,375.00 77,068.0C
1980 52,018 5,000 24,000.00 29,000.00 81,018.00
1981 51,118 5,000 23,625.00 28,625.00 79,743.00
1982 50,218 5,000 23,250.00 28,250.00 78,468.00
1983 49,318 5,000 22,875.00 27,875.00 77,193.00
1984 48,418 5,000 22,500.00 27,500.00 75,918.00
1985 52,518 5,000 22,125.00 27,125.00 79,643.00
1986 51,393 5,000 21,750.00 26,750.00 78,143.00
1987 50,268 5,000 21,375.00 26,375.00 76,643.00
1988 49,143 5,000 21,000.00 26,000.00 75,143.00
1989 47,706 10,000 20,625.00 30,625.00 78,331.00
1990 51,268 10,000 19,875.00 29,875.00 81,143.00
1991 49,543 10,000 19,125.00 2-9,125.00 78,668.00
1992 47,818 10,000 18,375.00 28,375.00 76,193.0C
1993 51,093 10,000 17,625.00 27,625.00 78,718.0r,
1994 49,081 10,000 16,875.00 26,875.00 75,956.0-
1995 52,068 10,000 16,125.00 26,125.00 78,193.0
1996 49,768 10,000 15,375.00 25,375.00 75,143.0'
1997 47,328 15,000 14,625.00 2-9,625.00 76,953.0(
1998 44,888 15,000 13,500.00 28,500.00 73,388.0C
1999 47,588 15,000 12,375.00 27,375.00 74,963.0C
2000 25,000 11,250.00 36,250.00 36,250.0C
2001 25,000 9,375.00 34,375.00 34,375.0C
2002 25,000 7,500.00 32,500.00 32,500.0C
2003 25,000 5,625.00 30,625.00 30,625.0C
2004 25,000 3,750.00 28,750.00 28,750.0C
2005 25,000 1,875.00 26,875.00 26,875.0C
-9-
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-10-
INTEREST EXEMPT FROM ALL PRESENT FEDERAL INCOME TAXES
MOODY'S RATING
Preliminary Circular
IIprovisional BAAIl
$235,000
CI'rY OF SCHERTZ, TEXAS
(Guadalupe, Bexar & Comal Counties)
GENERAL OBLIGATION BONDS
SERIES 1975
Dated: March 1, 1975
Denomination: $5,000
Principal and semi-annual interest (September 1 & March 1)
payable at the Schertz State Bank, Schertz, Texas.
First interest coupon due September 1, 1975.
MA TURI TY SCHEDULE
( Due September 1)
Amount Rate Maturity Yield Amount Rate Maturity Yield
$ 5,000 1978 $ 5,000 1990
5,000 1979 5,000 1991*
5,000 1980 5,000 1992*
5,000 1981 10,000 1993*
5,000 1982 10,000 1994*
5,000 1983 10,000 1995*
5,000 1984 20,000 1996*
5,000 1985 20,000 1997*
5,000 1986 20,000 1998*
5,000 1987 20,000 1999*
5,000 1988 20,000 2000*
5,000 1989 30,000 2001*
(*) Bonds maturing September 1, 1991 and thereafter are to be optional
on September 1, 1990, or on any interest payment date thereafter
at par and accrued interest.
THESE BONDS were authorized at elections for the following purposes:
10-30-71 $ 25,000 Street Improvements, second & final installment;
10-30-71 85,000 Drainage - total amount authorized; and
7-27-74 125,000 Park Improvements - total amount authorized.
The bonds will constitute direct and general obligations of the City of
Schertz, Texas, payable from ad valorem taxes levied against all taxable
property located therein, within the limits prescribed by law.
PROCEEDS from the sale of these bonds will be used for Street Improve-
ments, Drainage and Park Improvements.
-11-
PAYMENT RECORD: The City of Schertz, Texas, has never defaulted.
LEGALITY Messrs. Dobbins, Howard & Harris, Bond Attorneys,
and the Attorney General of the State of Texas.
DELIVERY When issued and received, expected on or about
April 2, 1975.
FINANCIAL STATEMENT
(As of 1-31-1975)
1974 Assessed Valuation (50% of Actual)................... $16,310,976
Total General ObI. Debt (Including this Issue)..$659,000
LESS: Self-supporting Debt........ $249,000
I & S Funds................. 16,790 265,790
NET DEBT (2.41% of A. V. - $60.37 per capita)........... $
393,210
Population - 1950
1960
1970
Estimated 1974
Unincorporated
2,281
4,061
6,513
TAX DATA
Tax Assessed Tax % Collections Year
Year Valuation Rate Current Total Endinq
-
1969 $ 4,880,413 $1.00 98.89 101.88 9-30-70
1970 5,874,234 1.00 99.09 99.95 9-30-71
1971 7,877,766 1.00 95.49 96.33 9-30-72
1972 9,657,845 1.00 98.73 100.68 9-30-73
1973 12,217,028 1.00 96.74 97.74 9-30-74
1974 16,310,976 1.00 92.73 As of 1-31-75
TAX RATE DISTRIBUTION
1974 1973 1972 1971 1970
General Fund $0.73 $0.70 $0.83 $0.79 $0.75
I & S Fund .27 .30 .17 .21 .25
Totals $1.00 $1. 00 $1. 00 $1. 00 $1. 00
TAX RATE LIMITATION
Imposed by Texas Constitution: $2.50 per $100 assessed valuation, by
local referendum, $2.50 for all city purposes.
-12-
COMPUTATION OF SELF-SUPPORTING DEBT
Net System Revenue Available for Year ending 1-31-75
Less: Average Annual Requirements for Rev. Bonds,inc.
Balance available for other purposes
Average Annual Requirements for System G. O.
Percentage of System G. O. Bonds Self-Supporting
$111,278
this issue 68,530
42,748
14,536
100%
TAX ADEQUACY
1974 Assessed Valuation of $16,310,976 computed with a Tax
Rate Levy of $0.32 @ 90% Collections Produces .........$46,520
Average Annual Principal & Interest Requirements........... $46,976
MUNICIPAL SALES TAXES
The City has adopted the provisions of Article 1066c, VCS, and levies
a 1% sales tax, effective October 1, 1970, which has produced net
collections on a full Calendar Year basis as follows:
Calendar
Year
Total
Collected
1971
1972
1973
1974
$19,612
23,008
26,503
41,163
GENERAL OBLIGATION BONDS AUTHORIZED BUT UNISSUED
Taxinq Body
Bexar County
Bexar Co. Hosp.Dist
Bexar Co. Rd. #3
cibo1o Creek Mun
Authority
Comal County
Coma1 ISD
Guadalupe County
San Antonio River
Authority
Schertz-cibo1o
Universal City ISD 6,162,250
TOTAL Net OVlpg Debt
SCHERTZ, City of 393,210
TOTAL Direct & OV1pg Debt
(12.52% - A. V. - $313.67 per
Date of
Authorization
12-16-61
7-18-70
Purpose
Authorized
Issued
To Date
Unissued
Sewer
$315,000
$ 14,000
$301,000
Sewer
250,000
-0-
250,000
ESTIMATED OVERLAPPING DEBT STATEMENT
Net Debt
Amount
Ovlpq
$ 144
37
12
Amount
$14,428,519
3,718,168
588,769
% OV1pq
0.001
.001
.002
As Of
5-31-74
6-30-74
5-31-74
190,000
178,845
8,627,053
115,726
6-30-74
9-30-74
8-31-74
9-30-74
21. 96
.28
.48
8.97
41,724
501
41,410
10,381
13,090,802
6-30-74
.001
131
8-31-74
25.24
1,555,352
$1,649,692
3<n,?lO
1-31-75
100.00
capita)
$2,042,902
-13-
$235,000
CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION BONDS
Present Proposed 7"/0* Total
Year Outstanding New Issue Interest Due New Issue Reqmts
9-30 Requirements Due 9-1 9 - 1 & 3 - 1 Reqmts. All Issues
1975 $ 34,455 $ $ 8,225 $ 8,225 $ 42,680
1976 34,750 16,450 16,450 51,200
1977 34,000 16,450 16,450 50,450
1978 30,247 5,000 16,450 21,450 51,697
1979 28,657 5,000 16,100 21,100 49,757
1980 29,134 5,000 15,750 20,750 49,884
1981 28,565 5,000 15,400 20,400 48,965
1982 28,01l 5,000 15,050 20,050 48,061
1983 28,457 5,000 14,700 19,700 48,157
1984 28,867 5,000 14,350 19,350 48,217
1985 29,227 5,000 14,000 19,000 48,227
1986 28,513 5,000 13,650 18,650 47,163
1987 28,799 5,000 13,300 18,300 47,099
1988 30,049 5,000 12,950 17,950 47,999
1989 29,103 5,000 12,600 17,600 46,703
1990 29,157 5,000 12,250 17,250 46,407
1991 28,174 5,000 11,900 16,900 45,074
1992 28,192 5,000 11,550 16,550 44,742
1993 28,147 10,000 11,200 21,200 49,347
1994 28,066 10,000 10,500 20,500 48,566
1995 28,924 10,000 9,800 19,800 48,724
1996 14,683 20,000 9,100 29,100 43,783
1997 14,248 20,000 7,700 27,700 41,948
1998 14,813 20,000 6,300 26,300 41, 113
1999 14,341 20,000 4,900 24,900 39,241
2000 14,870 20,000 3,500 23,500 38,370
2001 10,363 30,000 2,100 32,100 42,463
(*) 7"/0 Interest Rate used for calculation purposes only.
Average Annual Requirements 1975/2001
$
46,520
$0.32 Tax Levy @ 90"/0 Collection
$
46,976
-14-
PRINCIPAL TAXPAYERS
Name
Lucille's Inc.
Val Verde Apartments
Schertz State Bank
Guadalupe Valley Elec.Co-op
Wuest's, Inc.
Royal Crest
Southwestern Bell Tel. Co.
Wayne Kinzel
Rubin Beck
Roy R. Richards
Type of Property
Commercial Property
Apartments
Bank
Electric Utility
Grocery Store Chain
Residential Property
Telephone Utility
Rest Home
Commercial & Res. property
Commercial & Res. Property
1974 Assessed
Valuation
$ 341,172
311,106
203,693
111,445
111,150
108,025
90,460
65,158
58,749
55,945
THE CITY OF SCHERTZ, 1974 estimated population of 6,513 is a retail
center in a rapidly developing urban area. The City is located
approximately 15 miles east of the City of San Antonio and has 32
business establishments rated by Dun and Bradstreet. The Schertz
State Bank held deposits of $5,863,755, as of December 31, 1974.
The City's proximity to both City of San Antonio and Randolph Air
Force Base benefits its future growth. There is a considerable
amount of undeveloped acreage within the corporate limits and the
majority of this property has been purchased by leading San Antonio
Developers.
Schertz contains a majority of the schools of the Schertz-cibolo-
Universal City Independent School District; to include the Samuel
Clemens High School, O'Henry Middle School and the Schertz Elementary
School, and sites for an additional Elementary School and Junior High
School. The Public Housing Authority of Schertz received approval for
a Housing Grant totaling $1,848,000 to build 26 housing units for the
elderly and for the acquisition of land. A bid has been awarded to a
Contractor and construction is now under way for the building of said
housing units.
ECONOMIC BACKGROUND
County Characteristics: Guadalupe County, South Central Texas County
component of the San Antonio Metropolitan Area, traversed by Inter-
state Highway 10, 1970 population 33,554, increasing 15.6% from 1960,
economy based on agriculture, manufacturing and mineral production.
1972 cash receipts from agriculture $14.4 million, with livestock and
livestock products contributing $8.7 million. 1973 production included
2.5 million dozen eggs and 2.4 million bushels of grain sorghums. Beef
cattle, hogs, dairy products, hay, peanuts, pecans, wheat and corn also
produced.
The county's principal employer manufactures automobile radios and
presently employs 800 persons, with 1,800 expected at full capacity.
A structural steel products manufacturer employs over 500 persons.
Fiberglass cloth, dressed poultry, farm-supply products and cotton
garments also manufactured. Many county residents commute to jobs
in San Antonio. 1973 estimated county retail sales, $61.6 million.
Texas Lutheran College had a Fall, 1973 enrollment of 1,063. Six
county banks held combined 12-31-73 deposits of $63,618,441.
1972 value of all minerals produced, $9.8 million, 1973 crude oil
production, 2.6 million barrels; sand and gravel, clays and natural
gas also recovered. Hunting, fishing and county historic sites
attract additional income.
-15-
OFFICIAL BID FORM
Honorable Mayor and city council
City of Schertz
Schertz, Texas 78154
Gentlemen:
Reference is made to your "Notice of Sale" dated February 18, 1975,
covering $325,000 CITY OF SCHERTZ, TEXAS UTILITY SYSTEM REVENUE BONDS,
SERIES 1975, which is made a part hereof.
For your legally issued bonds, as described
we will pay par plus accrued interest from
delivery to us, plus a cash premium of $
and bearing interest as follows:
in said IINotice
date of issue to
for bonds
of Salell,
date of
maturing
September 1, 1979 through September 1, 19_, 0/0
September 1, 19_ through September 1, 19 -' 0/0
September 1, 19_ through September 1, 19_, 0/0
September 1, 19 through September 1, 19_, 0/0
September 1, through September 1, 0/0
Interest cost in accordance with the above bid is:
Gross Interest Cost.................... $
Les s : Premium. . . . . . . . . . . . . . . . . . . . . . . .. $
Net Interest Cost...................... $
EFFECTIVE INTEREST RATE ...............
0/0
Cashier's Check No. issued by
Bank, and payable to your order in the amount of $6,500.00 (is attached
hereto) (has been made available to you prior to the opening of this
bid) as a Good Faith Deposit for disposition in accordance with the
Official Notice of Sale.
Respectfully submitted,
By
Authorized Representative
The above and foregoing bid
City Council of the City of
12th day of March, 1975.
is hereby in all things accepted by' the
Schertz, Texas, in session this the
Mayor, city of Schertz, Texas
ATTEST:
City Secretary, City of Schertz, Texas
****************
Return of Good Faith Check is hereby acknowledged.
By
(See Reverse Side for Bona Years)
BOND YEARS
$325,000
CITY OF SCHERTZ, TEXAS
UTILITY SYSTEM REVENUE BONDS
SERIES 1975
YEAR
Dated: 3-1-1975
PRINCIPAL
( 9 - 1 )
ACCUMULATED
BOND YEARS
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
$ 5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
15,000
15,000
15,000
25,000
25,000
25,000
25,000
25,000
25,000
22.5
50.0
82.5
120.0
162.5
210.0
262.5
320.0
382.5
450.0.
595.0
750.0
915.0
1090.0
1275.0
1470.0
1675.0
1890.0
2227.5
2580.0
2947.5
3585.0
4247.5
4935.0
5647.5
6385.0
7147.5
AVERAGE MATURITY - 21.992 YEARS
OFFICIAL BID FOill1
Honorable Mayor and City Council
City of Schertz
Schertz, Texas 78154
Gentlemen:
Reference is made to your "Notice of Sale" dated February 18, 1975,
covering $325,000 CITY OF SCHERTZ, TEXAS UTILITY SYSTEM REVENUE BONDS,
SERIES 1975, which is made a part hereof.
For your legally issued bonds, as described in said "Notice of Sale",
we will pay par plus accrued interest from date of issue to date of
delivery to us, plus a cash premium of $ for bonds maturing
and bearing interest as follows:
September 1, 1979 through September 1, 19_
September 1, 19 through September 1, 19_,
September 1, 19 through September 1, 19_,
September 1, 19 through September 1, 19_,
September 1, through September 1, ,
Interest cost in accordance with the above bid is:
%
%
%
%
%
Gross Interest Cost.................... $
Less: Premium. . . . . . . . . . . . . . . .. . . . . . . .. $
Net Interest Cost...................... $
EFFECTIVE INTEREST RATE ...............
%
Cashier's Check No. issued by
Bank, and payable to your order in the amount of $6,500.00 (is attached
hereto) (has been made available to you prior to the opening of this
bid) as a Good Faith Deposit for disposition in accordance with the
Official Notice of Sale.
Respectfully submitted,
By
Authorized Representative
The above and foregoing bid
City Council of the City of
12th day of March, 1975.
is hereby in all things accepted by the
Schertz, Texas, in session this the
Mayor, City of Schertz, Texas
ATTEST:
City Secretary, City of Schertz, Texas
****************
Return of Good Faith Check is hereby acknowledged.
By
(See Reverse Side for Bond Years)
BOND YEARS
$325,000
CITY OF SCHERTZ, TEXAS
UTILITY SYSTEM REVENUE BONDS
SERIES 1975
YEAR
Dated: 3-1-1975
PRINCIPAL
( 9 - 1 )
ACCUMULATED
BOND YEARS
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
$ 5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
15,000
15,000
15,000
25,000
25,000
25,000
25,000
25,000
25,000
22.5
50.0
82.5
120.0
162.5
210.0
262.5
320.0
382.5
450.0.
595.0
750.0
915.0
1090.0
1275.0
1470.0
1675.0
1890.0
2227.5
2580.0
2947.5
3585.0
4247.5
4935.0
5647.5
6385.0
7147.5
AVERAGE MATURITY - 21.992 YEARS
OFFICIAL BID FORM
Honorable Mayor and City Council
City of Schertz
Schertz, Texas 78154
Gentlemen:
Reference is made to your "Notice of Sale" dated February 18, 1975,
covering $235,000 CITY OF SCHERTZ, TEXAS GENERAL OBLIGATION BONDS,
SERIES 1975, which is made a part hereof.
For your legally issued bonds, as described in said "Notice of Sale",
we will pay par plus accrued interest from date of issue to date of
delivery to us, plus a cash premium of $ for bonds maturing
and bearing interest as follows:
%
%
%
%
%
September 1, 1978 through September 1, 19 -'
September 1, 19_ through September 1, 19_,
September 1, 19 through September 1, 19 -'
-
September 1, 19_ through September 1, 19_,
September 1, through September 1,
Interest cost in accordance with the above bid is:
Gross Interest Cost ......................$
Less: Premium. . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Net Interest Cost.........................$
EFFECTIVE INTEREST RATE...................
%
Cashier's Check No. issued by
Bank, and payable to your order in the amount of $4,700.00 (is attached
hereto) (has been made available to you prior to the opening of this
bid) as a Good Faith Deposit for disposition in accordance with the
Official Notice of Sale.
Respectfully submitted,
By
Authorized Representative
The above and foregoing bid is hereby in all things accepted by the
City council of the City of Schertz, Texas, in session this the 12th
day of March, 1975.
ATTEST:
Mayor, City of Schertz, Texas
city Secretary, City of Schertz, Texas
*****************
Return of Good Faith Check is hereby acknowledged.
By
(See Reverse Side for Bond Years)
YEAR
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
BOND YEARS
$235,000
CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION BONDS
SERIES 1975
Dated: 3-1-1975
PRINCIPAL
( 9 - 1 )
$ 5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
10,000
10,000
10,000
20,000
20,000
20,000
20,000
20,000
30,000
AVERAGE MATURITY - 19.223 YEARS
ACCUMULATED
RON!) YRI\R~
17.5
40.0
67.5
100.0
137.5
180.0
227.5
280.0
337.5
400.0
467.5
540.0
617.5
700.0
787.5
972.5
1167.5
1372.5
1802.5
2252.5
2722.5
3212 . 5
3722.5
4517.5
OFFICIAL BID FORM
Honorable Mayor and City Council
City of Schertz
Schertz, Texas 78154
Gentlemen:
Reference is made to your "Notice of Sale" dated February 18, 1975,
covering $235,000 CITY OF SCHERTZ, TEXAS GENERAL OBLIGATION BONDS,
SERIES 1975, which is made a part hereof.
For your legally issued bonds, as described in said "Notice of Sale",
we will pay par phlS accrued in.terest from date of issue to date of
delivery to us, plus a cash premium of $ for bonds maturing
and bearing interest as follows:
%
%
%
%
%
Gross Interest Cost ......................$
Less: Premium. . . . . . . . . . . . . . . . .. . . . . .. . ... $
Net Interest cost.........................$
EFFECTIVE INTEREST RATE...................
%
Cashier's Check No. issued by
Bank, and payable to your order in the amount of $4,700.00 (is attached
hereto) (has been made available to you prior to the opening of this
bid) as a Good Faith Deposit for disposition in accordance with the
Official Notice of Sale.
Respectfully submitted,
By
Authorized Representative
The above and foregoing bid is hereby in all things accepted by the
city C9uncil of the City of Schertz, Texas, in session this the 12th
day of March, 1975.
ATTEST:
Mayor, City of Schertz, Texas
City Secretary, city of Schertz, Texas
*****************
Return of Good Faith Check is hereby acknowledgeC!-.
By
(See Reverse Side for Bond Years)
YEAR
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
BOND YEARS
$235,000
CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION BONDS
SERIES 1975
Dated: 3-1-1975
PRINCIPAL
( 9 - 1 )
$ 5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
10,000
10,000
10,000
20,000
20,000
20,000
20,000
20,000
30,000
AVERAGE MATURITY - 19.223 YEARS
ACCUMULATED
RONn VP.I\RS
17.5
40.0
67.5
100.0
137.5
180.0
227.5
280.0
337.5
400.0
467.5
540.0
617.5
700.0
787.5
972.5
1167.5
1372.5
1802.5
2252.5
2722.5
3212 . 5
3722.5
4517.5
I
Texas
Securities
Corporation
Dcalc,. In Municipal ; ands anel Special Assessment Certificates
March 10, 1 9 7 5
TELEPHONE 828-1482
5701 8ROADWAY
SAN ANTONIO, TEXAS 78209
Mr. Mike .All,en,President
Schertz State Bank
P. O. Box "00
Schertz, Texas 78154
Re: $325,000 City of Schertz, Texas Utility
System Revenue Bonds, Series 1975
&
235,000 city of Schertz, Texas General
Obligation Bonds, Series 1975
.
It
Dear Mr. Allen:
We serve as Financial Advisors to the City of Schertz
and enclose herewith three copies of the Official Notice
of Sale on the above bonds.
The local bank is requested sometimes by out of town
bidders to submit a bid on their behalf, and accordingly
you will find Bid Forms attached to each Notice. Please
do not hesitate to call the writer if you have any questions
or problems concerning the matter.
With kind regards, we remain
Very tr~yours,
TEXA~i;E06RI:tIE CO
- d ./
~/t~l /-~
~hom~Anderlitch,
Arnold ~'
--,
'i
President
THAIP
~ncB .
cc: Mr. Denny L.
City Manager
P. O. Drawer 1
Schertz, Texas
78154
I
DOBBINS. HOWARD & HARRIS
WILLIAM P. DOBBINS
VAN H. HQWARD.,JR
RICHARD W. HARRIS
ATTORN EYS AT ~AW
AREA CODE 512
TEL.EPHONE
TOWER LIFE BUILDING
223-2641
SAN ANTONIO, TEXAS 78205
19 March 1975
Mrs. June G. Krause
City Secretary
City of Schertz
P. O. Drawer I
Schertz, Texas 78154
Re: Bond Ordinances
Dear Mrs. Krause:
I have enclosed herewith two (2) executed copies of the
bond ordinances. One copy is the General Obligation Bond Ordinance
and the other is the Revenue Bond Ordinance. These ordinances
whould be retained in your minute book.
Yours very truly,
OWARD & HARRIS
C /f'--t:<---I" ~-C-.Y~/;{-e
ard W. Harris
C--~C<J
RWH:maz
Enclosures
I-
I
Texas
Securities
Corporation
Dealers In Municipal Bonds and Special Assessment Ce,tificates
March 10, 1 9 7 5
TELEPHONE 828-1482
5701 8ROADWAY
SAN ANTONIO, TEXAS 78209
Mr. Mike Allen,President
Schertz State Bank
P. O. Box 400
Schertz, Texas 78154
Re: $325,000 City of Schertz, Texas Utility
System Revenue Bonds, Series 1975
&
235,000 City of Schertz, Texas General
Obligation Bonds, Series 1975
Dear Mr. Allen:
We serve as Financial Advisors to the City of Schertz
and enclose herewith three copies of the Official Notice
of Sale on the above bonds.
The local bank is requested sometimes by out of town
bidders to submit a bid on their behalf, and accordingly
you will find Bid Forms attached to each Notice. Please
do not hesitate to call the writer if you have any questions
or problems concerning the matter.
with kind regards, we remain
Very tru ours,
TEXASPU~I:IE~O .
'- dr.[
~ho s M. Anderlitch,
Arnold ~/
President
TMA:P
Encs.
cc: Mr. Denny L.
city Manager
P. O. Drawer 1
Schertz, Texas
78154