08-02-2016 Agenda with backup City Council Agenda
REGULAR SESSION CITY COUNCIL
AUGUST 2, 2016, 6:00 P.M.
HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS
1400 SCHERTZ PARKWAY BUILDING #4
SCHERTZ, TEXAS 78154
COMMUNITY.SERVICE.OPPORTUNITY
08-02-2016 Council Agenda
City of Schertz Core Values
Do the right thing
Do the best you can
Treat others the way you would want to be treated
Work cooperatively with others
AGENDA
TUESDAY, AUGUST 2, 2016 AT 6:00 P.M.
Call to Order – City Council Regular Session
Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas.
(Councilmember Thompson)
City Events and Announcements
• Announcements of upcoming City Events (B. James/D. Wait/S. Gonzalez)
• Announcements and recognitions by City Manager (J. Kessel)
New Employee Recognitions:
• Library: Jennifer Pearson, Alexsaray Wheeler, Pt. Time Circulation Clerk & Summer
Marsh Pt. Time Library Page (B. James/M. Uhlhorn)
• Finance: R. J. Fraire - Financial Analyst
Workshop
• Discussion, presentation and update regarding the Schertz Seguin Local Government
Corporation regarding current water supply, future water development, water pipeline
construction and funding for future projects. (D. Wait/A. Cockrell/A. Friedman)
Hearing of Residents
This time is set aside for any person who wishes to address the City Council. Each person should
fill out the speaker’s register prior to the meeting. Presentations should be limited to no more than
3 minutes.
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All remarks shall be addressed to the Council as a body, and not to any individual member
thereof. Any person making personal, impertinent, or slanderous remarks while addressing the
Council may be requested to leave the meeting.
Discussion by the Council of any item not on the agenda shall be limited to statements of specific
factual information given in response to any inquiry, a recitation of existing policy in response to an
inquiry, and/or a proposal to place the item on a future agenda. The presiding officer, during the
Hearing of Residents portion of the agenda, will call on those persons who have signed up to speak
in the order they have registered.
Consent Agenda Items
The Consent Agenda is considered self-explanatory and will be enacted by the Council with one
motion. There will be no separate discussion of these items unless they are removed from the
Consent Agenda upon the request of the Mayor or a Councilmember.
1. Minutes – Consideration and/or action regarding the approval of the minutes of the Regular
Meeting of July 26, 2016. (J. Kessel/B. Dennis)
2. Ordinance No. 16-M-26 – Consideration and/or action approving an Ordinance setting the
Fee Schedule of the City of Schertz for FY 2016/17. Final Reading (J. Kessel/J. Santoya/J.
Walters)
3. Ordinance No. 16-T-21 – Consideration and/or action approving an Ordinance authorizing
a budget adjustment to the General Fund for the FY 2015/16 Budget. Final Reading (D.
Wait/D. Covington)
Discussion and Action Items
4. Resolution No. 16-R-61 – Consideration and/or action approving a Resolution authorizing
expenditures with Verizon Wireless, a DIR Vendor totaling no more than $133,100.00 for
Mobile Device Services, Air Cards for Public Safety Fleet, laptop connect, Ipads and
MiFi’s. (B. James/M. Clauser)
5. Consideration of Bids - Consideration of bids relating to the Sale of Obligations
Designated as “City of Schertz, Texas Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Series 2016A”, consideration and approval of Financial Advisor’s
recommendation concerning this matter; and other matters in connection therewith. (J.
Kessel/J. Santoya/J. Walters/A. Friedman)
6. Ordinance No. 16-B-22 - Consideration and approval of an Ordinance authorizing the
issuance of “City of Schertz, Texas Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Series 2016A”; providing for the payment of said certificates by
the levy of an ad valorem tax upon all taxable property within the city and further securing
said certificates by a lien on and pledge of the pledged revenues of the system; providing the
terms and conditions of said certificates and resolving other matters incident and relating to
the issuance, payment, security, sale, and delivery of said certificates, including the approval
and distribution of an official statement pertaining thereto; authorizing the execution of a
08-02-2016 City Council Agenda Page - 3 -
paying agent/registrar agreement and an official bid form; complying with the requirements
of the letter of representations previously executed with the depository trust company;
authorizing the execution of any necessary engagement agreements with the City’s Financial
Advisors and/or Bond Counsel; and providing an effective date. First and Final (J.
Kessel/J. Santoya/J. Walters/A. Friedman).
7. Consideration of Bids - Consideration of bids relating to the sale of Obligations designated
as “City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of
Obligation, Taxable Series 2016B”, consideration and approval of Financial Advisor’s
recommendation concerning this matter; and other matters in connection therewith. (J.
Kessel/J. Santoya/J. Walters/A. Friedman)
8. Ordinance No. 16-B-23- Consideration and approval of an Ordinance authorizing the
Issuance of “City of Schertz, Texas Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Taxable series 2016B”; providing for the payment of said
certificates by the levy of an ad valorem tax upon all taxable property within the city and
further securing said certificates by a lien on and pledge of the pledged revenues of the
system; providing the terms and conditions of said certificates and resolving other matters
incident and relating to the issuance, payment, security, sale, and delivery of said
certificates, including the approval and distribution of an official statement pertaining
thereto; authorizing the execution of a paying agent/registrar agreement and an official bid
form; complying with the requirements of the letter of representations previously executed
with the depository trust company; authorizing the execution of any necessary engagement
agreements with the City’s Financial advisors and/or Bond Counsel; and providing an
effective date. First and Final (J. Kessel/J. Santoya/J. Walters/A. Friedman)
9. Consideration of bids - Consideration of bids relating to the sale of Obligations designated
as “City of Schertz, Texas General Obligation Bonds, Series 2016”, consideration and
approval of financial advisor’s recommendation concerning this matter; and other matters
in connection therewith. (J. Kessel/J. Santoya/J. Walters/A. Friedman)
10. Ordinance No. 16-B-24 - Consideration and approval of an Ordinance authorizing the
issuance of “City of Schertz, Texas General Obligation Bonds, Series 2016”; levying a
continuing direct annual ad valorem tax, within the limitations prescribed by law, for the
payment of the bonds; prescribing the form, terms, conditions, and resolving other matters
incident and related to the issuance, sale, and delivery of the bonds, including the approval
and distribution of an official statement pertaining thereto; authorizing the execution of a
paying agent/registrar agreement and an official bid form; complying with the provisions of
the depository trust company’s letter of representations; authorizing the execution of any
necessary engagement agreements with the City’s Financial Advisors and/or Bond Counsel;
and providing for an effective date. First and Final (J. Kessel/J. Santoya/J. Walters/A.
Friedman)
Roll Call Vote Confirmation
Requests and Announcements
11. Announcements by City Manager
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• Citizen Kudos
• Recognition of City employee actions
• New Departmental initiatives
12. Future Agenda Item Request for City Council: This is an opportunity for City Council
members to request that items be placed on a future agenda. No discussion of the merits of
the item may be taken at this time. Should a Council Member oppose placement of the
requested item on a future agenda, the Mayor, without allowing discussion, shall ask for the
consensus of the other City Council members to place or not place the item on a future
agenda.
13. Announcements by Mayor and Councilmembers
• City and community events attended and to be attended
• City Council Committee and Liaison Assignments (see assignments below)
• Continuing education events attended and to be attended
• Recognition of actions by City employees
• Recognition of actions by community volunteers
Adjournment
CERTIFICATION
I, DONNA SCHMOEKEL, DEPUTY CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS,
DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS PREPARED AND POSTED ON
THE OFFICIAL BULLETIN BOARDS ON THIS THE 28th DAY OF JULY, 2016 AT 10:45 A.M.
WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT
SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS
GOVERNMENT CODE.
Donna Schmoekel
Donna Schmoekel, Deputy City Secretary
I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE
CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE
OFFICIAL BULLETIN BOARD ON _____DAY OF _______________, 2016.
____________________________Title:__________________________
This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking
spaces are available. If you require special assistance or have a request for sign interpretative services or
other services please call 210-619-1030.
The City Council for the City of Schertz reserves the right to adjourn into executive session at any
time during the course of this meeting to discuss any of the matters listed above, as authorized by the
Texas Open Meetings Act.
08-02-2016 City Council Agenda Page - 5 -
Executive Sessions Authorized: This agenda has been reviewed and approved by the City’s legal
counsel and the presence of any subject in any Executive Session portion of the agenda constitutes a
written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental
body and constitutes an opinion by the attorney that the items discussed therein may be legally
discussed in the closed portion of the meeting considering available opinions of a court of record and
opinions of the Texas Attorney General known to the attorney. This provision has been added to this
agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter
551.144(c) and the meeting is conducted by all participants in reliance on this opinion.
COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS
Mayor Carpenter
Audit Committee
Interview Committee for Boards and Commissions
Investment Advisory Committee
TIRZ II Board
Councilmember Fowler – Place 1
Interview Committee for Boards and Commissions
Schertz Housing Board Liaison
Randolph Joint Land Use Study (JLUS) Executive
Committee
Schertz Seguin Local Government Corporation
Councilmember Azzoz – Place 2
Animal Control Advisory Committee
Sweetheart Advisory Committee
Councilmember John – Place 3
Lone Star Rail District
Mayor Pro-Tem Edwards – Place 4
Audit Committee
Hal Baldwin Scholarship Committee
Interview Committee for Boards and Commissions
Cibolo Valley Local Government Corporation
Councilmember Thompson Place 5
Audit Committee
Investment Advisory Committee
Agenda No. 1
CITY COUNCIL MEMORANDUM
City Council Meeting: August 2, 2016
Department: City Secretary
Subject: Minutes
BACKGROUND
The City Council held a Regular Meeting on July 26, 2016.
FISCAL IMPACT
None
RECOMMENDATION
Staff recommends Council approve the minutes of the Regular Meeting of July 26, 2016.
ATTACHMENTS
Regular Meeting of July 26, 2016.
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MINUTES
REGULAR MEETING
July 26, 2016
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on July 26,
2016, at 6:00 p.m., in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz
Parkway, Building #4, Schertz, Texas. The following members present to-wit:
Mayor Michael Carpenter Mayor Pro-Tem Cedric Edwards
Councilmember Jim Fowler Councilmember Grumpy Azzoz
Councilmember Daryl John Councilmember Robin Thompson
Staff Present: City Manager John Kessel
Executive Director Brian James Executive Director Dudley Wait
City Attorney Charles Zech City Secretary Brenda Dennis
Assistant to the City Manager Sarah Gonzalez
Call to Order – City Council Regular Session
Mayor Carpenter called the meeting to order at 6:05 p.m.
Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas.
(Pastor Jim Curran, Schertz United Methodist Church)
Pastor Jim Curran provided the opening prayer followed by the pledges of allegiance to the flags of
the United States and the State of Texas.
City Events and Announcements
Announcements of upcoming City Events (B. James/D. Wait/S. Gonzalez)
Mayor Carpenter recognized Executive Director Brian James who provided the following
announcements:
Monday, July 25-31 RACAP School Supply Drive
Mattenga’s Pizzeria, 644 FM 3009, Ste. 290
Drop off items during regular store hours of:
Monday-Thursday and Sunday 11:00 AM-9:00 PM
Friday-Saturday 11:00 AM-10:00 PM
Friday, July 29 Budget Retreat for City Council
Fairfield Inn and Suites, 8:30 AM – 4:00 PM
Coffee with the Chamber
1730 Schertz Parkway, 7:30 AM – 9:30 AM
Friday, August 5 TML Region 7 Meeting
Kerr Arts and Cultural Center
228 Earl Garrett Street, Kerrville, 5:30 PM
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SAVE THE DATE
Friday, August 19 Senior Center Boogie Disco Dinner Dance
Schertz Civic Center, 6:00-10:00 PM
Announcements and recognitions by City Manager (J. Kessel)
Mayor Carpenter recognized City Manager John Kessel who stated IT Web Developer
Keyasha Brothern has completed the Comp TIA Project Plus Certification Program. This is
really important because we have a number of large projects starting to roll out and to have as
many of the IT staff as possible have this certification is an asset for us. He also wanted to
give her some praise for all the great work she has done.
He also received an e-mail from Mr. Mike Casey who was concerned about some property at
a drainage ditch. He contacted Environmental Health Manager Jesse Hamilton for some
assistance. Mr. Hamilton then contacted Public Works staff, Kevin Anderson, Doug Letbetter
and other drainage crew members who went out and took care of it. Mr. Casey was very
grateful and praised the City Public Work crews for addressing the issue so promptly.
Presentations:
Mayor Carpenter moved to the second presentation listed on the agenda.
Presentation regarding CASA of Central Texas, (Court Appointed Special Advocates) M.
Carpenter/Norma Blackwell)
Mayor Carpenter recognized Executive Director for CASA of Central Texas Norma
Blackwell who said CASA stands for Court Appointed Special Advocates. They advocate for
abused and neglected children in the court system by recruiting, training and supporting
community volunteers. They believe that every child deserves a safe and permanent home.
Through education, awareness, and involvement they can save children from further abuse,
one child at a time. She is here tonight because she had concerns about people confus ing them
with CASA of San Antonio. She wants to encourage citizens to volunteer for their local
CASA before going to San Antonio, which is outside our area. They also save the taxpayer
money. She just wants the Schertz community to know they are here in Schertz. They can
come and train. She thanked Guadalupe County Commissioner Jim Wolverton who suggested
she come tonight and let people know about their services. She also thanked the other county
commissioners and the county judge. These connections have also resulted in opening other
doors for the organization.
She turned the rest of the presentation over to Laura Tora, her Volunteer Coordinator who
showed a video and presented some statistical data. Over 750 children are placed in state
foster homes each year in Central Texas. More than 400 of these children are helped by
CASA of Central Texas in Caldwell, Comal, Guadalupe and Hays Counties. Courts appoint
CASA to oversee these cases and they also make recommendations in the best interest of the
children. CASA is there for the kids to reach out to in times of need.
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The organization and their volunteers help make a huge difference in the lives of all these
children and CASA is always in need of more volunteers. Since the volunteers are sworn in
by a judge they are also authorized to speak with foster parents, teachers, doctors and anyone
else involved in the lives of the children.
Anyone can become a volunteer—students, retirees, job holding citizens, etc. They have a
wide range of children that come in, infants to teenagers. She emphasized volunteers serving
within their own local area. and would like to see the number of volunteers increase. They are
going to be meeting with the local school district superintendent tomorrow; they have also
filed their application with Schertz for participating in Schertz Fest and they are also in the
process of joining The Chamber. The purpose of their presentation tonight is for us to help
them spread the word that CASA of Central Texas is here in Schertz, Guadalupe County, and
they are ready to take on more volunteers. She offered to meet with anyone and come speak at
churches or any other organizations. She thanked City Secretary Brenda Dennis for setting up
this meeting and to Council and Mayor for listening to her presentation.
Mayor Carpenter stated their work is very hard but very necessary. There is a wide need in
this area. He thanked them for being there and asked her to look into attending the volunteer
fair which the City of Schertz holds each year. He asked her to e-mail each councilmember
with their contact information so they can send people their way when the opportunities arise.
She added that they did have 14 volunteers currently registered from Schertz. They also have
a very high (over 80%) retention rate of their volunteers.
Mayor Carpenter moved back to the first presentation listed on the agenda.
Award Presentation regarding the Life Line Award from the American Heart Association. (D.
Wait/J. Mabbitt/D. Covington/Diana Barrett)
Mayor Carpenter recognized Executive Director Dudley Wait who introduced Regional QI
Director of the American Heart Association Diana Barrett who came forward to present two
awards: 1) Schertz EMS, and 2) Schertz Fire Rescue. He also invited all the EMS and Fire
representatives in the audience to come forward. What is standing before us (EMS/Fire
personnel) is an example of putting research into practice because they are on the front line
of everything.
Ms. Barrett stated one of the ways the organization tries to impact a community is to help
reduce death and disability from heart disease and stroke. They can educate the public about
warning signs and risk factors for having a heart attack but the reality is if they don’t call
911, their treatment will be delayed. EMS can go to the scene and quickly identify the
patients’ condition and pre-notify the receiving hospital to prepare themselves—treatment
happens faster and subsequently improves a positive outcome for the patient.
She is here tonight to present these Gold Awards which are based upon being able to identify
a 12 lead in the field, work with their hospital partners and provide care from first medical
contact to device, to intervention/treatment, in less than 90 minutes. It is a collaboration
between Fire, EMS, community members knowing to call 911 and between the hospital
working with EMS to make sure that a patient gets proper treatment quickly.
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These Gold Awards represent two years of meeting these specific guidelines. It is her honor
to present it to the City of Schertz Fire Department and EMS Department.
At the request of Councilmember Thompson, EMS Director Jason Mabbitt explained the
different awards: bronze, silver, and gold. Of all the Fire and EMS Departments in Texas,
only 7% of these departments won bronze, silver, or gold-- and only 3% of those winners
won gold. Mayor Carpenter stated we have an amazing track record with our Fire and EMS
first responders in this city.
Mayor Carpenter recognized Guadalupe Constable Precinct 3 Michael Skrobarcek who was in the
audience this evening.
Update regarding the Aquatic Center Facility. (J. Kessel/P. Gaudreau)
Mayor Carpenter recognized Owners Representative Phil Gaudreau who provided a
PowerPoint presentation regarding the progress of the aquatic facility answering questions
from Council. Council requested that Mr. Gaudreau place this information on the City’s
website for citizens to view. Mr. Gaudreau indicated that he would do so and also that the
website will be featuring updated photos as more progress evolves.
Hearing of Residents
Mayor Carpenter recognized the following individuals who spoke:
Mr. Glen Outlaw, 3729 Forsyth Park, who addressed the Council regarding the
construction sign at the Aquatic Facility being built; he showed a photograph and stated
that the perception is that the YMCA is building the facility and not the City. He would
like to see a sign that indicates that the City of Schertz is building the facility as we
passed bonds to build it.
Mr. Robert Brockman, 1000 Elbel Road who inquired as to where the old Fire Truck was
as it was not used in the last parade. City Manager John Kessel indicated that the Fire
Truck’s engine needs to be repaired and updated. Cost and time to repair the vehicle now
has prohibited the city to start repairs. He understands that the cost to repair the Fire
Truck will be folded into next year’s budget.
Mayor Carpenter requested Council move to agenda item 7 as there is a guest present that will be
providing information.
Discussion and Action Items
7. Certificate of Approval – Consideration and/or action approving the Mayor of the City of
Schertz to execute and sign the Certificate of approval regarding Tax -Exempt Financing for
Responsive Education Solutions. (Mayor Carpenter)
Mayor Carpenter recognized Attorney Cathleen Chang with Andrews Kruth LLP who stated
Responsive Education Solutions is a qualified 501(c) 3 charitable organization, and therefore
is eligible to participate in tax-exempt financings. However, unlike a governmental issuer
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(e.g., a city or school district), a 501(c) 3 organization must issue bonds through a state-
approved conduit and must conduct a public hearing on the financing. Since one of the
campuses will be located in the City of Schertz, Internal Revenue Code §147(f) requires that
the “highest elected official” of the City approve the transaction after the public hearing is
held. The public hearing was held on July 20, 2016 at Premier High School of San Antonio,
4941 Walzem Rd., Ste. 8220, San Antonio, Texas 78218.
Responsive Education Solutions is financing the construction and equipment of Founders
Classical Academy of Schertz, 12470 Woman Hollering Rd., Schertz, Texas 78154 and 8453
E. 1518 North, Schertz, Texas 78154. Responsive Education Solutions is financing at tax-
exempt interest rates through a bond issue facilitated by Arlington Higher Education Facilities
Finance Corporation. Andrew Kurth LLP serves as bond counsel for the transaction.
Mayor Carpenter moved, seconded by Councilmember Fowler to approve the Mayor of the
City of Schertz to execute and sign the Certificate of Approval regarding Tax-Exempt
Financing for Responsive Education Solutions. The vote was unanimous with Mayor Pro-
Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson voting for and no
one voting no. Motion passed.
Mayor Carpenter indicated that at staff’s request, agenda item Item 6 has been removed from the
Consent Agenda items and placed on discussion.
Consent Agenda Items
The Consent Agenda is considered self-explanatory and will be enacted by the Council with one
motion. There will be no separate discussion of these items unless they are removed from the
Consent Agenda upon the request of the Mayor or a Councilmember.
1. Minutes – Consideration and/or action regarding the approval of the minutes of the Regular
Meeting of July 12, 2016. (J. Kessel/B. Dennis)
2. Boards, Commissions and Committee Member Resignations and Appointments –
Consideration and/or action ratifying the resignation of Rosemary Scott of the Economic
Development Corporation Board. (B. Dennis)
3. Resolution No. 16-R-55– Consideration and/or action approving a Resolution authorizing
EMS Debt Revenue Adjustments for certain inactive outstanding accounts receivables. (D.
Wait/J. Mabbitt)
The following was read into record:
RESOLUTION NO. 16-R-55
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING EMS DEBT REVENUE ADJUSTMENTS FOR INACTIVE
OUTSTANDING ACCOUNTS RECEIVABLES AFTER 180 DAYS OF NON
PAYMENT AND OTHER MATTERS IN CONNECTION THEREWITH
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4. Resolution No. 16-R-56 - Consideration and/or action approving a Resolution authorizing
Utility Billing Debt Revenue Adjustments for certain inactive outstanding accounts
receivables. (D. Wait/J. Santoya/C. Spence/R. Rosales)
The following was read into record:
RESOLUTION NO. 16 -R-56
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING UTILITY BILLING DEBT REVENUE ADJUSTMENTS FOR
INACTIVE OUTSTANDING ACCOUNTS RECEIVABLES AFTER 180 DAYS OF
NON PAYMENT AND OTHER MATTERS IN CONNECTION THEREWITH
5. Resolution No. 16-R-57– Consideration and/or action approving a Resolution authorizing
Schertz Magazine Debt Revenue Adjustments for certain inactive outstanding accounts
receivables. (J. Kessel/S. Gonzalez/L. Klepper)
The following was read into record:
RESOLUTION NO. 16-R-57
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING SCHERTZ MAGAZINE DEBT REVENUE ADJUSTMENTS FOR
INACTIVE OUTSTANDING ACCOUNTS RECEIVABLES AFTER 180 DAYS OF
NON PAYMENT AND OTHER MATTERS IN CONNECTION THEREWITH
Mayor Carpenter recognized Councilmember Thompson who moved, seconded by Mayor
Pro-Tem Edwards to approve consent agenda items 1-5. The vote was unanimous with
Mayor Pro-Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson voting
for and no one voting no. Motion passed.
Discussion and Action Items
6. Resolution No. 16-R-58 – Consideration and/or action approving a Resolution authorizing
the City Manager to sign an Interlocal Agreement for Automatic Aid for Fire Protection and
other Emergency Services between the City of Schertz and the City of Cibolo. (D. Wait/D.
Covington)
The following was read into record:
RESOLUTION NO. 16-R-58
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING THE CITY MANAGER TO SIGN AN INTERLOCAL AGREEMENT
FOR AUTOMATIC AID FOR FIRE PROTECTION AND OTHER EMERGENCY
SERVICES BETWEEN THE CITY OF SCHERTZ AND THE CITY OF CIBOLO,
AND OTHER MATTERS IN CONNECTION THEREWITH
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Mayor Carpenter recognized Fire Chief David Covington who provided a PowerPoint
presentation regarding this project with the following highlights:
Mutual vs. Automatic Aid – Call when you need help
Automatic Aid – No need to call, already coming, applies to all calls for service
NFPA Considerations:
• NEPA 1201: Standard for Providing Emergency Services to the Public Section 4.6 Inter-
Community Organization. “Were practical and as conditions require, the (department) shall
have written mutual aid and automatic arrangements with other jurisdictions or providers of
special operations or particular services.
• ISO Considerations: Differs from mutual aid, must be pre-arranged for first alarm response,
24/7/365, common radio communications, common training.
• Summary: Faster response, more efficient delivery of service, positive fiscal impact, potential
ISO consideration resulting in lower insurance costs to homeowners, win-win for both cities.
Mayor and Council thanked Chief Covington for the great work and thanked the work of both
cities and departments for getting this accomplished.
Mayor Carpenter recognized Councilmember Thompson who moved, seconded by Mayor
Pro-Tem Edwards to approve Resolution No. 16-R-58. The vote was unanimous with
Mayor Pro-Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson voting
for and no one voting no. Motion passed.
8. Resolution No. 16-R-53 – Consideration and/or action approving a Resolution authorizing
the City to enter into a Design Services Agreement with Brown Reynolds Watford Architects
for Fire Station Number 3 and associated support systems. (D. Wait/D. Covington/P.
Gaudreau)
The following was read into record:
RESOLUTION NO. 16-R-53
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AUTHORIZING THE DESIGN SERVICES AGREEMENT FOR FIRE
STATION NUMBER 3 AND ASSOCIATED SUPPORT SYSTEMS AND
OTHER MATTERS IN CONNECTION THEREWITH
Mayor Carpenter recognized Owners Representative Phil Gaudreau who said a Request for
Qualifications (RFQ) for design services was issued on February 23, 2016. Responses were
received on March 24, 2016 and the evaluations committee reviewed the fifteen responses
resulting in the selection of the top two qualified firms for interviews. These interviews were
conducted on April 24, 2016 and resulted in the selection of Brown Reynolds Watford
Architects (BRW) as the most qualified respondent given the number of Fire Station projects
presented.
Negotiations with BRW have resulted in an Agreement to provide complete Architectural and
Engineering services for the new Fire Station Number 3. Funds will be from the November
07-26-2016 Minutes Page - 8 -
2015 bond election funds. The total amount payable under this Agreement shall not exceed
$528,800.00 plus $50,000.00 of contingency funds for a total amount of $578,800.00. Staff
recommends approval of Resolution No 16-R-53 authorizing the City Manager to execute an
Agreement for the design of the new Fire Station and associated support systems in
substantially the form set forth in Exhibit A of the Resolution. Mr. Gaudreau addressed
questions from Council.
Mayor Carpenter recognized Mayor Pro-Tem Edwards who moved, seconded by
Councilmember Thompson to approve Resolution No. 16-R-53. The vote was unanimous
with Mayor Pro-Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson
voting for and no one voting no. Motion passed.
9. Resolution No. 16-R-59 – Consideration and/or action approving a Resolution authorizing
Change Order #1 to the existing agreement with Thos. S. Byrne, Ltd for replacement of
windows at the recreation center and approving additional repairs. (J. Kessel/P. Gaudreau)
The following was read into record:
RESOLUTION NO. 16-R-59
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING THE APPROVAL OF AN AMMENDMENT TO THE EXISTING
AGREEMENT WITH THOS. S BYRNE, LTD FOR REPLACEMENT OF WINDOWS
AND GLAZING SYSTEMS AT THE RECREATION CENTER
Mayor Carpenter recognized Owners Representative Phil Gaudreau who stated the goal here
is to correct construction deficiencies uncovered as a result of investigating the proper
installation of the new window units and to perform other measures in order to ensure the
water-tightness of the entire structure. As work continues additional deficiencies may be
uncovered that necessitate additional change orders that will be brought before City Council.
The building was designed by the architectural firm of Munoz and Associates, the City served
as the General Contractor for the project which was substantially complete in 2010.City
Council awarded a contract to Thos. S Byrne to replace the existing curtain walls and
associated glazing on March 22, 2016. During the course of preparing the existing building to
receive the new curtain wall and associated glazing several items have come up that were not
anticipated during the bidding period. The costs associated with these items are stated in
Change Order #1.
1. The coping at the top of the saw-tooth wall at locations other than new window units needs
to be replaced with new flashing and caulking materials. This replacement is covered under
the existing contract at the new window locations. Additionally it was discovered that the
caulking at the joints of the precast wall panel have started to fail and they should be raked out
and replaced with material that will provide a longer life span. This is priced at $18,652.00 in
PC # 2.
2. The existing exterior doors for the entire facility do not meet ADA and TAS requirements
for clear dimensions in the open position. These doors are being replaced under the existing
Agreement. The base bid was to reuse the existing hardware on the new doors. It has now
07-26-2016 Minutes Page - 9 -
been determined that is not in the best interest of the City moving forward due to the increased
size of the new doors and that the doors will require new hardware to function correctly. This
is priced at $10,737 in PC #4
3. It was discovered that the miscellaneous steel members within the building window
openings were not installed correctly. These members protrude out beyond the interior face of
the exterior wall opening preventing the curtain wall members from being installed with the
required set-back from the outside face of exterior wall. These members must be cut out and
the parapet wall and supports must be moved back toward the inside of the building envelope
in order to set the new curtain wall plum and vertical. This is priced at $28,063.00 in PC #9
4. Currently there is not a concrete exit pad at door #103 and one is required for exiting under
ADA and TAS. This is priced at $9,585.00 in PC #10. Funds for this item will be from the
2016 CO Bonds.
Mayor Carpenter recognized Mayor Pro-Tem Edwards who moved, seconded by
Councilmember Thompson to approve Resolution No. 16-R-59. The vote was unanimous
with Mayor Pro-Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson
voting for and no one voting no. Motion passed.
10. Ordinance No. 16-M-26 – Consideration and/or action approving an Ordinance setting the
Fee Schedule of the City of Schertz for FY 2016/17. First Reading (J. Kessel/J. Santoya/J.
Walters)
The following was read into record:
ORDINANCE NO. 16-M-26
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AMENDING THE CITY OF SCHERTZ CODE OF ORDINANCES AND CERTAIN
OTHER ORDINANCES BY AMENDING AND ESTABLISHING FEES FOR
CERTAIN LICENSES, PERMITS, AND OTHER SERVICES PROVIDED BY THE
CITY OF SCHERTZ.
Mayor Carpenter recognized Assistant Finance Director James Walters who s tated City
Departments collect a wide variety of fees for permits, services, fines and other charges that
are all part of everyday operations of municipal government. Since September 2008, the fees
have been incorporated into a single fee schedule. Ordinance 08-M-43 established the
consolidated fee schedule and allows for the modification of existing fees to be done by
resolution while new fees are established or added to the Fee Schedule by ordinance.
The Fee Schedule ordinance provides a single document with all City fees that directly affect
the users. The changes to the fees ensures the continued operation of public utilities, provides
for essential services to the community and to adequately maintain the investment in existing
infrastructure. All changes to the fee schedule will have a 45-day period before the new fees
take into effect. This allows staff to update and advise citizens on the upcoming changes.
Recommended effective date of these fee changes will be October 1, 2016.
07-26-2016 Minutes Page - 10 -
The proposed fee changes in the General Fund are not expected to result in material revenue
changes.
Some of the more notable changes include increasing the fee for the Bluebonnet Hall for
Friday and Saturdays by $75.000 to be more in line with other rental facilities in the area. The
Library is proposing to drop the $3.00 fee for interlibrary loans to encourage the use of this
program. The Marshal’s office is dropping the food handler class permit fees. The
Inspections Department is proposing to not charge a separate fee for solar panel reinstallation
when it is being done in conjunction with a roof replacement.
For the Water & Sewer Fund, the proposed Water and Sewer rate increases are expected to
generate the additional revenue as seen in the Water Rate Study by Economist.com in order to
meet upcoming infrastructure needs. The water rates changed in most recent rate study
performed with the upcoming changes to the direction taken by the San Antonio River
Authority (SAWS) that will no longer be a customer of the Schertz Seguin Local Government
Corporation (SSLGC). This change in water rates is expected to have an additional $2.37
impact per customer per month for a total of $6.93 increase in water and sewer fees, or 11%
increase. The Water & Sewer Fund is a self-sustaining fund and these fee increases are
necessary to support ongoing operations and maintenance as well as upcoming infrastructure
improvements.
EMS will increase 2% on its per capita charge to match the Medical Care Consumer Price
Index (CPI) change. This additional $135,900 will allow EMS to adjust their upcoming
budget to match inflation. Staff recommends approval. Mr. Walters addressed questions from
Council. Councilmember Azzoz expressed his concern regarding the increase in water fees.
Councilmember Fowler provided comments as to why the increase in fees were necessary.
Mayor Carpenter recognized City Manager John Kessel who stated that he wo uld propose that
a workshop discussion be placed on the next agenda to talk about the SSLGC Rates and
Capital Improvement projects.
Mayor Carpenter recognized Councilmember Fowler who moved, seconded by Mayor Pro-
Tem Edwards to approve Ordinance No. 16-M-26 first reading. The vote was unanimous
with Mayor Pro-Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson
voting for and no one voting no. Motion passed.
11. Ordinance No. 16-T-21 – Consideration and/or action approving an Ordinance authorizing a
budget adjustment to the General Fund for the FY2015/16 Budget. First Reading (D. Wait/D.
Covington)
The following was read into record:
ORDINANCE NO. 16-T-21
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING A BUDGET ADJUSTMENT TO THE GENERAL FUND;
REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT
WITH THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE
07-26-2016 Minutes Page - 11 -
Mayor Carpenter recognized Assistant Finance Director James Walters who stated per policy
any budget adjustments between departments over $50,000 must go before council for
approval.
Fire Department – To authorize the advance hiring of 3 firefighters for station 3 and to cover
projected overtime for the remainder of Fiscal Year 2015-2016. The additional firefighters
were proposed in a ramp up program where we hire these personnel early in order to train
them to be ready to man the station once it opens. With the award of the design contract and
to get a few more months of training in, staff proposes to hire these indi viduals now instead of
proposing these hires to take effect October 1st, 2016 with the implementation of the new
budget. Also, due to an increase in injuries seen in the Fire Department this year, the overtime
budget is projected to go over by year end. Th ese adjustments are proposed to come from the
turnover savings of vacant Purchasing Manager and the previous Executive Director of
Services position.
Building Maintenance – Currently this budget is expected to be over by the year end due to
many A/C failures. The funds currently spent on repairing and replacing A/C units has
prevented staff from pursuing planning projects including the Library’s wood siding power
wash and seal and noise panels at the Civic Center. Due to a conservative approach while we
are in an adjustment period for the new legal fees, funds will be moved from legal to cover the
building maintenance budget.
Fleet – The fleet department is also expected to be over budget by year end due to an increase
in repairs to city equipment and vehicles. Emergency Services vehicle maintenance and repair
has been a priority this year and has used up the available budget. The proposed adjustment
will also be covered by savings in the legal services budget.
Senior Center – The senior center expenses are expected to be over budget by year end. Our
meal contract services were going to come at no cost to the City since the provider as to be
receiving a grant. Due to circumstances on the provider’s end they weren’t able to provide the
meals at no cost and this budget adjustment is to cover the cost of meals through the end of
the fiscal year. This proposed adjustment will also be covered by the legal services budget.
Oil Water Separator – The oil water separator is an in the ground mechanism used to prevent
pollution when we wash vehicles in the Emergency Services yard. It was not designed to bear
the weight of the new fire engines and needs to be redesigned. It is now off limits for fire and
EMS emergency vehicles to drive over limiting the maneuverability of these vehicles trying to
enter or exit the complex to take a call. The budget for this will be transferred from the tax
abatements account and the EMS computer equipment account where we have identified areas
where the budget was available and placed in a project account.
Streets – To authorize the funding for the Interlocal agreement for street improvements at
Borgfeld and Dietz Road in conjunction with the City of Cibolo and Schertz -Cibolo-Universal
City Independent School District. The City of Schertz’ portion is $67,000 and will be funded
from within the Street Department from the under budget electric utility and vehicle fuel and
the remaining street maintenance materials. Also to be funded is $15,000 for yellow turn
signals at 3 intersections on Schertz Parkway. These funds will be transferred from savings in
the land line telephone account located in IT.
07-26-2016 Minutes Page - 12 -
There is no fiscal impact as all adjustments have been identified from existing budgets which
result in no overall change in the General Fund approved amount. Staff recommends approval.
Mayor Carpenter recognized Mayor Pro-Tem Edwards who moved, seconded by
Councilmember Thompson to approve Ordinance No. 16-T-21, first reading. The vote was
unanimous with Mayor Pro-Tem Edwards, Councilmembers Fowler, Azzoz, John and
Thompson voting for and no one voting no. Motion passed.
12. Acceptance of the Letter of Resignation from Councilmember Daryl John –
Consideration and/or action accepting the resignation letter from Councilmember Daryl
John, Place 3. (Mayor/Council)
Mayor Carpenter asked Councilmember John to give a briefing to the audience of what has
transpired leading up to his resignation from Council. Councilmember John stated he won his
primary for the Guadalupe County Tax Assessor Collector position which means he has to
step down from his Schertz City Council seat. This is a procedural process to enable the City
Secretary to place this city council seat on the November 8th election ballot. However, he will
not be vacating the seat until the actual Election Day.
Each councilmember took their turn in expressing their thanks for his service to the city and
wishing him good luck in his new position. Mayor Carpenter added that Councilmember
John’s decision to turn in his resignation notice now is saving the city approximately $20,000
by eliminating the need for a special election next May (2017) to fill the vacancy. He thanked
Mr. John for making this decision now. He also said it bodes well for our new Tax Assessor
Collector to take an action that saves people taxes. He also thanked him for his service.
Mayor Carpenter recognized Mayor Pro-Tem Edwards who moved, seconded by
Councilmember Fowler to accept the letter of resignation from Councilmember Daryl John.
The vote was unanimous with Mayor Pro-Tem Edwards, Councilmembers Fowler,
Azzoz, John and Thompson voting for and no one voting no. Motion passed.
13. Resolution No. 16-R-60– Consideration and/or action approving a Resolution calling a Joint
General and Special election to be held on November 8, 2016 for the purpose of electing
Councilmembers for Place 1, Place 2 and Mayor for a three year term, new Councilmember
Places 6 & 7 for a two year term and for the unexpired term of Place 3 for a one year term for
said City; making provision for the conduct of the election; authorizing contracts with the
Elections administrators of Bexar and Guadalupe Counties to conduct this election;
authorizing the election to be held as a joint election; resolving other matters incident and
related to such election; and declaring an effective date. (B. Dennis/Mayor/Council)
The following was read into record:
RESOLUTION NO. 16-R-60
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS,
CALLING AN ELECTION TO BE HELD ON NOVEMBER 8 , 2016 FOR THE
PURPOSE OF ELECTING COUNCILMEMBERS FOR PLACE 1, PLACE 2 AND
MAYOR FOR A THREE YEAR TERM AND NEW COUNCILMEMBER PLACES 6
07-26-2016 Minutes Page - 13 -
& 7 FOR A TWO YEAR TERM AND CALLING A SPECIAL ELECTION IN
CONJUNCTION FOR THE PURPOSE OF ELECTING A COUNCILMEMBER FOR
PLACE 3 FOR THE UNEXPIRED TERM FOR SAID CITY; MAKING PROVISION
FOR THE CONDUCT OF THE ELECTION; AUTHORIZING CONTRACTS WITH
THE ELECTIONS ADMINISTRATORS OF BEXAR AND GUADALUPE COUNTIES
TO CONDUCT THIS ELECTION; AUTHORIZING THE ELECTION TO BE HELD
AS A JOINT ELECTION; RESOLVING OTHER MATTERS INCIDENT AND
RELATED TO SUCH ELECTION; AND DECLARING AN EFFECTIVE DATE
Mayor Carpenter recognized City Secretary Brenda Dennis who stated the item before you is
a revised Resolution calling the Joint General Election, and now with your approval of
Agenda Item 12, the acceptance of Councilmember John’s resignation, also calling a Special
Election for November 8, 2016. The Resolution that was in your packet indicated a midnight
deadline which has been corrected based on information from the Secretary of State. This
resolution is for the purpose of electing the following seats:
Councilmembers Place 1, Place 2 and Mayor - for a 3 year term to expire November 2019.
New Councilmember Places 6 & 7 - for a 2 year term to expire November 2018.
The one year unexpired term of Place 3 - term to Expire November 2017.
This resolution also includes provisions for conducting the election(s) and authorizing joint
contracts with the Election Administrators of (1) Bexar and (2) Guadalupe Counties.
The first day to file an application for a place on the ballot in the general election was
yesterday, Monday, July 25th and continues through Monday, August 22nd ending at 5:00 p.m.
Applications are available in the City Secretary’s office and can be found online o n our City
website, www.schertz.com – just click the Election Banner at the top of our home page.
The first day to file an application for a place on the ballot in the Special Election is tomorrow
Wednesday, July 27 and continues through Thursday, August 25th ending at 5:00 p.m.
October 11th is the last day to submit a voter registration application in time to vote at the
election or for requesting a transfer of registration in time to vote in a new precinct not in the
same county and territory.
The first day of early voting begins on Monday, October 24th through Friday, November 4th.
All information regarding early voting sites will be published and made available on our
website at www.schertz.com - just click the Election Banner at the top of our home page.
Election Day is Tuesday, November 8, 2016. A list of voting precincts will be published in the
newspaper and can also be found on our city website by clicking on the Election Banner at the
top of our home page.
Ms. Dennis stated it has been strongly recommended by all the Election Administrators to
access your right to early vote in order to avoid waiting in very long lines on election day. It is
also important to know that if you vote a straight ticket you will not be voting in our election,
you must scroll down to our election ballot to vote for city candidates for office.
07-26-2016 Minutes Page - 14 -
Mayor Carpenter recognized Mayor Pro-Tem Edwards who asked about the information
regarding if you vote a straight ticket, then you won’t be voting in the Schertz Election. Ms.
Dennis indicated that she would be happy to coordinate with our Public Affairs Department to
devise some type of communication notice regarding this. Mayor Pro-Tem Edwards also
stated that he didn’t see anything regarding the Comal residents. Ms. Dennis stated that once
again the Guadalupe County Administrator Lisa Adam will be handling our two precincts in
Comal County for our election as Comal County does not have an Elections Administrator
like Bexar and Guadalupe County do.
Mayor Carpenter recognized Councilmember Thompson who suggested if it is legal to do so,
we could put on each voting machine that if you vote a straight ticket, you have to scroll down
to find the City of Schertz ballot. He indicated that the more we can emphasize this to our
voters the better it will be. Ms. Brenda Dennis indicated that she would get with the election
administrators to see what could be done for communicating this information.
Lastly, Ms. Dennis stated that if anyone was interested in servin g as an Election Clerk or
Judge, Guadalupe County is in need of workers and if they would reach out to her she could
provide the contact information.
Mayor Carpenter recognized Councilmember Thompson who moved, seconded by
Councilmember Fowler to approve Resolution No. 16-R-60. The vote was unanimous with
Mayor Pro-Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson voting
for and no one voting no. Motion passed.
Roll Call Vote Confirmation
Mayor Carpenter recognized City Secretary Brenda Dennis who provided the roll call votes for
agenda items 1 through 13.
Executive Session
14. Council did not meet in executive session.
Requests and Announcements
15. Announcements by City Manager
Citizen Kudos
Recognition of City employee actions
New Departmental initiatives
No further announcements were made.
16. Future Agenda Item Request for City Council: This is an opportunity for City Council
members to request that items be placed on a future agenda. No discussion of the merits of
the item may be taken at this time. Should a Council Member oppose placement of the
requested item on a future agenda, the Mayor, without allowing discussion, shall ask for the
consensus of the other City Council members to place or not place the item on a future
agenda.
07-26-2016 Minutes Page - 15 -
Mayor Carpenter recognized Councilmember Thompson who stated that at an earlier time we
had discussions regarding a Food Truck Ordinance and he would like an update at an
upcoming meeting on how that is progressing.
Mayor Carpenter recognized Councilmember Azzoz who stated a while back Councilmember
Thompson asked for an update on a gentleman that spoke at a past city council meeting
regarding a police incident that he had. He doesn’t recall receiving this information.
Executive Director Dudley Wait indicated that the information was provided via email to the
Council but he will send the information to Councilmember Azzoz again. Councilmember
Azzoz also asked for updated information regarding the investigation of the Gutierrez case.
17. Announcements by Mayor and Councilmembers
City and community events attended and to be attended
City Council Committee and Liaison Assignments (see assignments below)
Continuing education events attended and to be attended
Recognition of actions by City employees
Recognition of actions by community volunteers
Mayor Carpenter recognized Councilmember Fowler who congratulated Councilmember
Azzoz on the successful Police Fundraising event he held yesterday.
Mayor Carpenter recognized Councilmember Azzoz who stated that Councilmember Fowler
said it all and he concurred that the fundraising event was very successful.
Adjournment
Mayor Carpenter adjourned the meeting at 7:51 p.m.
________________________________
Michael Carpenter, Mayor
ATTEST:
__________________________________
Brenda Dennis, City Secretary
Agenda No. 2
CITY COUNCIL MEMORANDUM
City Council Meeting: August 2, 2016
Department: Administration/Finance
Subject: Ordinance No. 16-M-26 – Amending
Appendix C of the Code of Ordinances by
updating the Fee Schedule (Final Reading)
BACKGROUND
City Departments collect a wide variety of fees for permits, services, fines and other charges that
are all part of everyday operations of municipal government. Since September 2008, the fees
have been incorporated into a single fee schedule. Ordinance 08-M-43 established the
consolidated fee schedule and allows for the modification of existing fees to be done by
resolution while new fees are established or added to the Fee Schedule by ordinance.
The Fee Schedule ordinance provides a single document with all City fees that directly affect the
users. The changes to the fees ensures the continued operation of public utilities, provides for
essential services to the community and to adequately maintain the investment in existing
infrastructure. All changes to the fee schedule will have a 45-day period before the new fees take
into effect. This allows staff to update and advise citizens on the upcoming changes.
Recommended effective date of these fee changes will be October 1, 2016.
City Council approved this on first reading at their meeting of July 26, 2016.
FISCAL IMPACT
The proposed fee changes in the General Fund are not expected to result in material revenue
changes.
Some of the more notable changes include increasing the fee for the Bluebonnet Hall for Friday
and Saturdays by $75.000 to be more in line with other rental facilities in the area. The Library is
proposing to drop the $3.00 fee for interlibrary loans to encourage the use of this program. The
Marhal’s office is dropping the food handler class permit fees. Inspections is proposing to not
charge a separate fee for solar panel reinstallation when it is being done in conjunction with a
roof replacement.
For the Water & Sewer Fund, the proposed Water and Sewer rate increases are expected to
generate the additional revenue as seen in the Water Rate Study by Economist.com in order to
meet upcoming infrastructure needs. The water rates changed in most recent rate study
performed with the upcoming changes to the direction taken by the San Antonio River Authority
(SAWS) that will no longer be a customer of the Schertz Seguin Local Government Corporation
(SSLGC). This change in water rates is expected to have an additional $2.37 impact per
customer per month for a total of $6.93 increase in water and sewer fees, or 11% increase. The
Water & Sewer Fund is a self-sustaining fund and these fee increases are necessary to support
ongoing operations and maintenance as well as upcoming infrastructure improvements.
EMS will increase 2% on its per capita charge to match the Medical Care Consumer Price Index
(CPI) change. This additional $135,900 will allow EMS to adjust their upcoming budget to
match inflation.
RECOMMENDATION
Staff recommends the City Council approve Ordinance No. 16-M-26, amending Appendix C of
the Code of Ordinances on final reading.
ATTACHMENTS
Ordinance No. 16-M-26
Fee Schedule (Exhibit “A”)
ORDINANCE NO. 16-M-26
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AMENDING THE CITY OF SCHERTZ CODE OF ORDINANCES AND
CERTAIN OTHER ORDINANCES BY AMENDING AND ESTABLISHING FEES
FOR CERTAIN LICENSES, PERMITS, AND OTHER SERVICES PROVIDED
BY THE CITY OF SCHERTZ.
WHEREAS, the City of Schertz (the “City”) has established by ordinances and
resolutions for fees for licenses, permits, and services provided by the City; and
WHEREAS, the City Council has authorized a review and a consolidation of certain fees
for licenses, permits, and services provided by the City; and
WHEREAS, the Schedule of Fees attached as Exhibit A reflects revisions to certain fees,
a restatement of certain fees not revised, and a consolidation of all such fees; and
WHEREAS, due to the need for periodic modification of said fees and for the purposes
of efficiency, the City Council desires to adopt future fee changes by resolution rather
than by ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF SCHERTZ, TEXAS THAT:
SECTION 1.
All persons, firms, or corporations applying for licenses or permits or receiving other
City services described on Exhibit A that require the payment of a fee incident to such
application or service shall pay the fees as prescribed in the Fee Schedule attached hereto
as Exhibit A and made a part of hereof. It shall be a violation of this Ordinance to
conduct any activity or commence any use or receive any service for which payment of a
fee described herein is required until such fee has been paid (if required to be paid in
advance) or to fail to pay such fee when properly billed.
SECTION 2.
This Ordinance shall be cumulative of all provisions of ordinances and of the Code of
Ordinances of the City of Schertz, Texas as to the fees set forth on Exhibit A effect on the
effective date of this Ordinance, except where the provisions of this Ordinance are in
direct conflict with the provisions of such ordinances and such Code, in which event the
conflicting provisions of such ordinances and such Code are hereby repealed.
SECTION 3.
The City Council may, from time to time, by ordinance add to the fees set forth on
Exhibit A, and the fees now or hereafter set forth on Exhibit A may be modified from
time to time by resolution of the City Council.
SECTION 4.
It is hereby declared to be the intention of the City Council that the phrases, clauses,
sentences, paragraphs, and sections of this Ordinance are severable, and if any phrase,
clause, sentence, paragraph, or section of this Ordinance shall be declared
unconstitutional by the valid judgment or decree of any court of competent jurisdiction,
such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences,
paragraphs, and sections of this Ordinance, since the same would have been enacted by
the City Council without the incorporation in this Ordinance of any such unconstitutional
phrase, clause, sentence, paragraph, or section.
SECTION 5.
Subject to the last sentence of this Section, any person, firm, or corporation who violates,
disobeys, omits, neglects, or refuses to comply with or who resists the enforcement of
any of provisions of this Ordinance shall be fined not more than Five Hundred Dollars
($500.00) for each offense. Each day that a violation is permitted to exist shall constitute
a separate offense. If any other ordinance, including the Code of Ordinances, establishes
a different penalty for the failure to pay any fee on Exhibit A, the provisions of such other
ordinance or the Code of Ordinances shall control with respect to such penalty.
SECTION 6.
All rights and remedies of the City are expressly saved as to any and all violations of the
provisions of the Code of Ordinances in effect on the effective date of this Ordinance and
modified by this Ordinance or any other ordinances in effect on the effective date of this
Ordinance and modified by this Ordinance and requiring the payment of fees for licenses,
permits, and other services provided by the City which have accrued on the effective date
of this Ordinance; and any and all accrued violations and all pending litigation, both civil
and criminal, whether pending in court or not, under such ordinances, shall not be
affected by this Ordinance but may be prosecuted until final disposition by the courts.
SECTION 7.
This Ordinance shall be in full force and effect from and after its final passage and any
publication required by law.
Passed and approved on the first reading this 26th day of July, 2016.
PASSED AND APPROVED ON FINAL READING this _day of August, 2016.
____________________________________
Michael R. Carpenter, Mayor
ATTEST:
___________________________________
Brenda Dennis, City Secretary
City of Schertz
Schedule of Fees
Summary of Changes 2015-16 2015-16 2016-17
Library
Inter-Library Loan Postage 3.00$ 3.00$ REMOVE
Event Facilities
Linens 50.00$ 50.00$ REMOVE
Security Coordination Fee 15.00$ 15.00$ 15.00$
Beverage Service -$ 50.00$
Sweetheart Tickets- Pre sale 10.00$ 10.00$ 10.00$
Sweetheart Tickets - Night Of 10.00$ 10.00$ 15.00$
All Rentals
Approved Setup Kit (required for catered events)25.00$ 25.00$ REMOVE
Civic Center - Bluebonnet Hall (2,500 sq ft)
Banquet Package - includes hall rental, tables/chairs, AV panel access,
ice, kitchen:
Friday through Saturday, all day (half day not available)600.00$ 600.00$ 675.00$
Regular Rentals
Friday through Saturday, all day (half day not available)500.00$ 500.00$ 575.00$
Marshal
Food Handlers Class, for each employee attending the class 30.00$ 30.00$ REMOVE
Food Handler Permit, online class 20.00$ 20.00$ REMOVE
EMS
Per Capita 13.35$ 13.75$ 14.03$
Inspections
Roof Replacement
With a Roof Replacement No Charge for Solar Panel Reinstallation Permit
Public Works
Meter Size
5/8" X 3/4"265.00$ 265.00$ 275.00$
3/4" X 3/4"295.00$ 295.00$ 302.00$
1" X 1"367.00$ 367.00$ 385.00$
1.5" X 1/5"611.00$ 611.00$ 646.00$
2" X 2"769.00$ 769.00$ 1,822.00$
Meter Installation Fees - Outside the City
Meter Size
5/8" X 3/4"275.00$ 275.00$ 285.00$
3/4" X 3/4"305.00$ 305.00$ 312.00$
1" X 1"377.00$ 377.00$ 395.00$
1.5" X 1/5"621.00$ 621.00$ 656.00$
2" X 2"779.00$ 779.00$ 1,832.00$
Meter Installation Fees - Inside the City
1
City of Schertz
Schedule of Fees
Summary of Changes 2015-16 2015-16 2016-17
Garbage Fees
Residential:
Zone I: Once a week pick up
One 96 gallon cart provided by franchisee, per month 11.70$ 12.05$ 12.05$
Residents requesets 2 carts total:17.53$ 18.05$ 18.05$
Resident requests 3 carts total:23.38$ 24.08$ 24.08$
Resident requests 4 carts total:29.22$ 30.09$ 30.09$
Recycling Fee, per month/container 1.93$ 1.99$ 1.99$
Zone 2: Single Family, twice per week pick up, per month, no cart provided 17.08$ 17.59$ 17.59$
Recycling Fee, per month/container 1.93$ 1.99$ 1.99$
2
City of Schertz
Schedule of Fees
Summary of Changes 2015-16 2016-17
Sewer
Residential Rates (Single Family)
Base Rate-per month 9.22$ 11.16$
Per 1,000 gal Charge, Per Month
City line Maintenance fee plus Franchise fee 0.36$ 0.44$
User Charge based on 100% of avg consumption mo.3.15$ 3.35$
User avg. based on Nov, Dec, and Jan, min. 500 gals.
Per 1,000 gal charge Total- 12,000 gallons or less 3.51$ 3.79$
greater than 12,000 gallons 6.95$ 8.34$
Business and Multi-family Dwelling Units:
Base Rate per month 11.69$ 14.03$
The base rate shall be assessed in terms of connection equivalents
which shall be as follows: the customer's previous 12 month water
consumption as determined at the annual re-rating in February
divided by 365, with the results of such division then
divided by 245 gallons. The figure arrived at by the second
division shall be the customer's "connection equivalent". Each
business shall be assessed a base rate.
Per 1,000 gal Charge, Per Month
Line Maintenance-Commercial/Industrial users plus Franchise fee 0.45$ 0.53$
User Charge-based on 100% of water consumed 3.15$ 3.35$
Per 1,000 gal charge Total- 12,000 gallons or less 3.60$ 3.88$
greater than 12,000 gallons 7.02$ 8.42$
Public Schools
Base Rate per month
Base Rate-each public school shall be assessed a 11.69$ 14.03$
base rate per connection equivalent determined as
in Business and Multi-family dwelling units above. (per month)
Per 1,000 gal Charge, Per Month
Line Maintenance-Commercial/Industrial users 0.45$ 0.53$
User Charge-based on 100% of all water consumed 3.15$ 3.35$
Per 1,000 gal charge Total- 12,000 gallons or less 3.60$ 3.88$
greater than 12,000 gallons 7.02$ 8.42$
For Information Purposes Only:
Cibolo Creek Municipal Authority (CCMA), Per 1,000 gallons 3.15$ 3.35$
includes 5% franchise fee
3
City of Schertz
Schedule of Fees
Public Works - Water Rates
GALLONS SOLD BY METER SIZE (RESIDENTIAL AND SMALL COMMERCIAL)
METER BLOCK CURRENT NEW CURRENT NEW CURRENT NEW CURRENT NEW
GALLONS BLOCK RATE BLOCK RATE RATE 1000 RATE 1000 BLOCK RATE BLOCK RATE RATE 1000 RATE 1000
5/8 IN 0 20.89$ 23.19$ 2.58$ 2.86$ 25.30$ 28.09$ 5.16$ 5.73$
CODE 1 6,000 36.37$ 40.35$ 2.62$ 2.91$ 56.26$ 62.47$ 5.23$ 5.80$
9,000 44.23$ 49.08$ 2.84$ 3.15$ 71.95$ 79.87$ 5.69$ 6.32$
12,000 52.75$ 58.53$ 3.06$ 3.40$ 89.02$ 98.83$ 6.13$ 6.80$
15,000 61.93$ 68.73$ 3.24$ 3.60$ 107.41$ 119.23$ 6.49$ 7.20$
18,000 71.65$ 79.53$ 4.08$ 4.53$ 126.88$ 140.83$ 8.16$ 9.06$
30,000 120.61$ 133.89$ 4.64$ 5.15$ 224.80$ 249.55$ 9.29$ 10.31$
45,000 190.21$ 211.14$ 4.94$ 5.48$ 364.15$ 404.20$ 9.88$ 10.97$
60,000 264.31$ 293.34$ 5.12$ 5.68$ 512.35$ 568.75$ 10.23$ 11.35$
75,000+341.11$ 378.54$ 5.23$ 5.80$ 665.80$ 739.00$ 10.45$ 11.60$
3/4 IN 0 31.33$ 34.78$ 2.58$ 2.86$ 37.95$ 42.12$ 5.16$ 5.73$
CODE 2 6,000 46.81$ 51.94$ 2.62$ 2.91$ 68.91$ 76.50$ 5.23$ 5.80$
9,000 54.67$ 60.67$ 2.84$ 3.15$ 84.60$ 93.90$ 5.69$ 6.32$
12,000 63.19$ 70.12$ 3.06$ 3.40$ 101.67$ 112.86$ 6.13$ 6.80$
15,000 72.37$ 80.32$ 3.24$ 3.60$ 120.06$ 133.26$ 6.49$ 7.20$
18,000 82.09$ 91.12$ 4.08$ 4.53$ 139.53$ 154.86$ 8.16$ 9.06$
30,000 131.05$ 145.48$ 4.64$ 5.15$ 237.45$ 263.58$ 9.29$ 10.31$
45,000 200.65$ 222.73$ 4.94$ 5.48$ 376.80$ 418.23$ 9.88$ 10.97$
60,000 274.75$ 304.93$ 5.12$ 5.68$ 525.00$ 582.78$ 10.23$ 11.35$
75,000+351.55$ 390.13$ 5.23$ 5.80$ 678.45$ 753.03$ 10.45$ 11.60$
1.0 IN 0 52.22$ 57.96$ 2.58$ 2.86$ 63.25$ 70.21$ 5.16$ 5.73$
CODE 3 6,000 67.70$ 75.12$ 2.62$ 2.91$ 94.21$ 104.59$ 5.23$ 5.80$
9,000 75.56$ 83.85$ 2.84$ 3.15$ 109.90$ 121.99$ 5.69$ 6.32$
12,000 84.08$ 93.30$ 3.06$ 3.40$ 126.97$ 140.95$ 6.13$ 6.80$
15,000 93.26$ 103.50$ 3.24$ 3.60$ 145.36$ 161.35$ 6.49$ 7.20$
18,000 102.98$ 114.30$ 4.08$ 4.53$ 164.83$ 182.95$ 8.16$ 9.06$
30,000 151.94$ 168.66$ 4.64$ 5.15$ 262.75$ 291.67$ 9.29$ 10.31$
45,000 221.54$ 245.91$ 4.94$ 5.48$ 402.10$ 446.32$ 9.88$ 10.97$
60,000 295.64$ 328.11$ 5.12$ 5.68$ 550.30$ 610.87$ 10.23$ 11.35$
75,000+372.44$ 413.31$ 5.23$ 5.80$ 703.75$ 781.12$ 10.45$ 11.60$
2016-17
INSIDE CITY OUTSIDE CITY
4
City of Schertz
Schedule of Fees
Public Works - Water Rates
GALLONS SOLD BY METER SIZE (RESIDENTIAL AND SMALL COMMERCIAL)
METER BLOCK CURRENT NEW CURRENT NEW CURRENT NEW CURRENT NEW
GALLONS BLOCK RATE BLOCK RATE RATE 1000 RATE 1000 BLOCK RATE BLOCK RATE RATE 1000 RATE 1000
2016-17
INSIDE CITY OUTSIDE CITY
1 1/2 IN 0 104.44$ 115.93$ 2.58$ 2.86$ 126.49$ 140.40$ 5.16$ 5.73$
CODE 4 15,000 143.14$ 158.83$ 2.62$ 2.91$ 203.89$ 226.35$ 5.23$ 5.80$
30,000 182.44$ 202.48$ 2.84$ 3.15$ 282.34$ 313.35$ 5.69$ 6.32$
45,000 225.04$ 249.73$ 3.06$ 3.40$ 367.69$ 408.15$ 6.13$ 6.80$
60,000 270.94$ 300.73$ 3.24$ 3.60$ 459.64$ 510.15$ 6.49$ 7.20$
75,000 319.54$ 354.73$ 4.08$ 4.53$ 556.99$ 618.15$ 8.16$ 9.06$
100,000 421.54$ 467.98$ 4.64$ 5.15$ 760.99$ 844.65$ 9.29$ 10.31$
125,000 537.54$ 596.73$ 4.94$ 5.48$ 993.24$ 1,102.40$ 9.88$ 10.97$
150,000 661.04$ 733.73$ 5.12$ 5.68$ 1,240.24$ 1,376.65$ 10.23$ 11.35$
175,000+789.04$ 875.73$ 5.23$ 5.80$ 1,495.99$ 1,660.40$ 10.45$ 11.60$
2 IN 0 167.10$ 185.48$ 2.58$ 2.86$ 202.39$ 224.65$ 5.16$ 5.73$
SIMPLE 24,000 229.02$ 254.12$ 2.62$ 2.91$ 326.23$ 362.17$ 5.23$ 5.80$
COMPOUND 48,000 291.90$ 323.96$ 2.84$ 3.15$ 451.75$ 501.37$ 5.69$ 6.32$
CODE 5 72,000 360.06$ 399.56$ 3.06$ 3.40$ 588.31$ 653.05$ 6.13$ 6.80$
96,000 433.50$ 481.16$ 3.24$ 3.60$ 735.43$ 816.25$ 6.49$ 7.20$
120,000 511.26$ 567.56$ 4.08$ 4.53$ 891.19$ 989.05$ 8.16$ 9.06$
160000 674.46$ 748.76$ 4.64$ 5.15$ 1,217.59$ 1,351.45$ 9.29$ 10.31$
200,000 860.06$ 954.76$ 4.94$ 5.48$ 1,589.19$ 1,763.85$ 9.88$ 10.97$
240,000 1,057.66$ 1,173.96$ 5.12$ 5.68$ 1,984.39$ 2,202.65$ 10.23$ 11.35$
280,000+1,262.46$ 1,401.16$ 5.23$ 5.80$ 2,393.59$ 2,656.65$ 10.45$ 11.60$
2IN 0 208.87$ 231.85$ 2.58$ 2.86$ 252.99$ 280.82$ 5.16$ 5.73$
TURBINE 30,000 286.27$ 317.65$ 2.62$ 2.91$ 407.79$ 452.72$ 5.23$ 5.80$
CODE 6 60,000 364.87$ 404.95$ 2.84$ 3.15$ 564.69$ 626.72$ 5.69$ 6.32$
90,000 450.07$ 499.45$ 3.06$ 3.40$ 735.39$ 816.32$ 6.13$ 6.80$
120,000 541.87$ 601.45$ 3.24$ 3.60$ 919.29$ 1,020.32$ 6.49$ 7.20$
150,000 639.07$ 709.45$ 4.08$ 4.53$ 1,113.99$ 1,236.32$ 8.16$ 9.06$
200,000 843.07$ 935.95$ 4.64$ 5.15$ 1,521.99$ 1,689.32$ 9.29$ 10.31$
250,000 1,075.07$ 1,193.45$ 4.94$ 5.48$ 1,986.49$ 2,204.82$ 9.88$ 10.97$
300,000 1,322.07$ 1,467.45$ 5.12$ 5.68$ 2,480.49$ 2,753.32$ 10.23$ 11.35$
350,000+1,578.07$ 1,751.45$ 5.23$ 5.80$ 2,991.99$ 3,320.82$ 10.45$ 11.60$
5
City of Schertz
Schedule of Fees
Public Works - Water Rates
GALLONS SOLD BY METER SIZE (RESIDENTIAL AND SMALL COMMERCIAL)
METER BLOCK CURRENT NEW CURRENT NEW CURRENT NEW CURRENT NEW
GALLONS BLOCK RATE BLOCK RATE RATE 1000 RATE 1000 BLOCK RATE BLOCK RATE RATE 1000 RATE 1000
2016-17
INSIDE CITY OUTSIDE CITY
3 IN 0 334.20$ 370.96$ 2.58$ 2.86$ 404.78$ 449.31$ 5.16$ 5.73$
COMPOUND 48,000 458.04$ 508.24$ 2.62$ 2.91$ 652.46$ 724.35$ 5.23$ 5.80$
CODE 7 96,000 583.80$ 647.92$ 2.84$ 3.15$ 903.50$ 1,002.75$ 5.69$ 6.32$
144,000 720.12$ 799.12$ 3.06$ 3.40$ 1,176.62$ 1,306.11$ 6.13$ 6.80$
192,000 867.00$ 962.32$ 3.24$ 3.60$ 1,470.86$ 1,632.51$ 6.49$ 7.20$
240,000 1,022.52$ 1,135.12$ 4.08$ 4.53$ 1,782.38$ 1,978.11$ 8.16$ 9.06$
320,000 1,348.92$ 1,497.52$ 4.64$ 5.15$ 2,435.18$ 2,702.91$ 9.29$ 10.31$
400,000 1,720.12$ 1,909.52$ 4.94$ 5.48$ 3,178.38$ 3,527.71$ 9.88$ 10.97$
480,000 2,115.32$ 2,347.92$ 5.12$ 5.68$ 3,968.78$ 4,405.31$ 10.23$ 11.35$
560,000+2,524.92$ 2,802.32$ 5.23$ 5.80$ 4,787.18$ 5,313.31$ 10.45$ 11.60$
3 IN 0 501.30$ 556.44$ 2.58$ 2.86$ 607.17$ 673.96$ 5.16$ 5.73$
TURBINE 72,000 687.06$ 762.36$ 2.62$ 2.91$ 978.69$ 1,086.52$ 5.23$ 5.80$
CODE 8 144,000 875.70$ 971.88$ 2.84$ 3.15$ 1,355.25$ 1,504.12$ 5.69$ 6.32$
216,000 1,080.18$ 1,198.68$ 3.06$ 3.40$ 1,764.93$ 1,959.16$ 6.13$ 6.80$
288,000 1,300.50$ 1,443.48$ 3.24$ 3.60$ 2,206.29$ 2,448.76$ 6.49$ 7.20$
408,000 1,689.30$ 1,875.48$ 4.08$ 4.53$ 2,985.09$ 3,312.76$ 8.16$ 9.06$
528,000 2,178.90$ 2,419.08$ 4.64$ 5.15$ 3,964.29$ 4,399.96$ 9.29$ 10.31$
648,000 2,735.70$ 3,037.08$ 4.94$ 5.48$ 5,079.09$ 5,637.16$ 9.88$ 10.97$
768,000 3,328.50$ 3,694.68$ 5.12$ 5.68$ 6,264.69$ 6,953.56$ 10.23$ 11.35$
888,000+3,942.90$ 4,376.28$ 5.23$ 5.80$ 7,492.29$ 8,315.56$ 10.45$ 11.60$
4 IN 0 522.19$ 579.63$ 2.58$ 2.86$ 632.47$ 702.04$ 5.16$ 5.73$
COMPOUND 75,000 715.69$ 794.13$ 2.62$ 2.91$ 1,019.47$ 1,131.79$ 5.23$ 5.80$
CODE 9 150,000 912.19$ 1,012.38$ 2.84$ 3.15$ 1,411.72$ 1,566.79$ 5.69$ 6.32$
225,000 1,125.19$ 1,248.63$ 3.06$ 3.40$ 1,838.47$ 2,040.79$ 6.13$ 6.80$
300,000 1,354.69$ 1,503.63$ 3.24$ 3.60$ 2,298.22$ 2,550.79$ 6.49$ 7.20$
425,000 1,759.69$ 1,953.63$ 4.08$ 4.53$ 3,109.47$ 3,450.79$ 8.16$ 9.06$
550,000 2,269.69$ 2,519.88$ 4.64$ 5.15$ 4,129.47$ 4,583.29$ 9.29$ 10.31$
675,000 2,849.69$ 3,163.63$ 4.94$ 5.48$ 5,290.72$ 5,872.04$ 9.88$ 10.97$
800,000 3,467.19$ 3,848.63$ 5.12$ 5.68$ 6,525.72$ 7,243.29$ 10.23$ 11.35$
925,000+4,107.19$ 4,558.63$ 5.23$ 5.80$ 7,804.47$ 8,662.04$ 10.45$ 11.60$
6
City of Schertz
Schedule of Fees
Public Works - Water Rates
GALLONS SOLD BY METER SIZE (RESIDENTIAL AND SMALL COMMERCIAL)
METER BLOCK CURRENT NEW CURRENT NEW CURRENT NEW CURRENT NEW
GALLONS BLOCK RATE BLOCK RATE RATE 1000 RATE 1000 BLOCK RATE BLOCK RATE RATE 1000 RATE 1000
2016-17
INSIDE CITY OUTSIDE CITY
4 IN 0 877.28$ 973.78$ 2.58$ 2.86$ 1,062.54$ 1,179.42$ 5.16$ 5.73$
TURBINE 126,000 1,202.36$ 1,334.14$ 2.62$ 2.91$ 1,712.70$ 1,901.40$ 5.23$ 5.80$
CODE 10 252,000 1,532.48$ 1,700.80$ 2.84$ 3.15$ 2,371.68$ 2,632.20$ 5.69$ 6.32$
378,000 1,890.32$ 2,097.70$ 3.06$ 3.40$ 3,088.62$ 3,428.52$ 6.13$ 6.80$
504,000 2,275.88$ 2,526.10$ 3.24$ 3.60$ 3,861.00$ 4,285.32$ 6.49$ 7.20$
630,000 2,684.12$ 2,979.70$ 4.08$ 4.53$ 4,678.74$ 5,192.52$ 8.16$ 9.06$
840,000 3,540.92$ 3,931.00$ 4.64$ 5.15$ 6,392.34$ 7,095.12$ 9.29$ 10.31$
1,050,000 4,515.32$ 5,012.50$ 4.94$ 5.48$ 8,343.24$ 9,260.22$ 9.88$ 10.97$
1,260,000 5,552.72$ 6,163.30$ 5.12$ 5.68$ 10,418.04$ 11,563.92$ 10.23$ 11.35$
1,470,000+6,627.92$ 7,356.10$ 5.23$ 5.80$ 12,566.34$ 13,947.42$ 10.45$ 11.60$
6 IN 0 1,044.38$ 1,159.26$ 2.58$ 2.86$ 1,264.94$ 1,404.08$ 5.16$ 5.73$
COMPOUND 150,000 1,431.38$ 1,588.26$ 2.62$ 2.91$ 2,038.94$ 2,263.58$ 5.23$ 5.80$
CODE 11 300,000 1,824.38$ 2,024.76$ 2.84$ 3.15$ 2,823.44$ 3,133.58$ 5.69$ 6.32$
450,000 2,250.38$ 2,497.26$ 3.06$ 3.40$ 3,676.94$ 4,081.58$ 6.13$ 6.80$
600,000 2,709.38$ 3,007.26$ 3.24$ 3.60$ 4,596.44$ 5,101.58$ 6.49$ 7.20$
750,000 3,195.38$ 3,547.26$ 4.08$ 4.53$ 5,569.94$ 6,181.58$ 8.16$ 9.06$
1,000,000 4,215.38$ 4,679.76$ 4.64$ 5.15$ 7,609.94$ 8,446.58$ 9.29$ 10.31$
1,250,000 5,375.38$ 5,967.26$ 4.94$ 5.48$ 9,932.44$ 11,024.08$ 9.88$ 10.97$
1,500,000 6,610.38$ 7,337.26$ 5.12$ 5.68$ 12,402.44$ 13,766.58$ 10.23$ 11.35$
1,750,000+7,890.38$ 8,757.26$ 5.23$ 5.80$ 14,959.94$ 16,604.08$ 10.45$ 11.60$
6 IN 0 1,921.65$ 2,133.03$ 2.58$ 2.86$ 2,327.48$ 2,583.51$ 5.16$ 5.73$
TURBINE 276,000 2,633.73$ 2,922.39$ 2.62$ 2.91$ 3,751.64$ 4,164.99$ 5.23$ 5.80$
CODE 12 552,000 3,356.85$ 3,725.55$ 2.84$ 3.15$ 5,195.12$ 5,765.79$ 5.69$ 6.32$
828,000 4,140.69$ 4,594.95$ 3.06$ 3.40$ 6,765.56$ 7,510.11$ 6.13$ 6.80$
1,104,000 4,985.25$ 5,533.35$ 3.24$ 3.60$ 8,457.44$ 9,386.91$ 6.49$ 7.20$
1,380,000 5,879.49$ 6,526.95$ 4.08$ 4.53$ 10,248.68$ 11,374.11$ 8.16$ 9.06$
1,840,000 7,756.29$ 8,610.75$ 4.64$ 5.15$ 14,002.28$ 15,541.71$ 9.29$ 10.31$
2,300,000 9,890.69$ 10,979.75$ 4.94$ 5.48$ 18,275.68$ 20,284.31$ 9.88$ 10.97$
2,760,000 12,163.09$ 13,500.55$ 5.12$ 5.68$ 22,820.48$ 25,330.51$ 10.23$ 11.35$
3,220,000+14,518.29$ 16,113.35$ 5.23$ 5.80$ 27,526.28$ 30,551.51$ 10.45$ 11.60$
7
City of Schertz
Schedule of Fees
Public Works - Water Rates
GALLONS SOLD BY METER SIZE (RESIDENTIAL AND SMALL COMMERCIAL)
METER BLOCK CURRENT NEW CURRENT NEW CURRENT NEW CURRENT NEW
GALLONS BLOCK RATE BLOCK RATE RATE 1000 RATE 1000 BLOCK RATE BLOCK RATE RATE 1000 RATE 1000
2016-17
INSIDE CITY OUTSIDE CITY
8 IN 0 1,687.96$ 1,873.64$ 2.58$ 2.86$ 2,044.23$ 2,269.09$ 5.16$ 5.73$
COMPOUND 240,000 2,307.16$ 2,560.04$ 2.62$ 2.91$ 3,282.63$ 3,644.29$ 5.23$ 5.80$
CODE 13 480,000 2,935.96$ 3,258.44$ 2.84$ 3.15$ 4,537.83$ 5,036.29$ 5.69$ 6.32$
720,000 3,617.56$ 4,014.44$ 3.06$ 3.40$ 5,903.43$ 6,553.09$ 6.13$ 6.80$
960,000 4,351.96$ 4,830.44$ 3.24$ 3.60$ 7,374.63$ 8,185.09$ 6.49$ 7.20$
1,200,000 5,129.56$ 5,694.44$ 4.08$ 4.53$ 8,932.23$ 9,913.09$ 8.16$ 9.06$
1,600,000 6,761.56$ 7,506.44$ 4.64$ 5.15$ 12,196.23$ 13,537.09$ 9.29$ 10.31$
2,000,000 8,617.56$ 9,566.44$ 4.94$ 5.48$ 15,912.23$ 17,661.09$ 9.88$ 10.97$
2,400,000 10,593.56$ 11,758.44$ 5.12$ 5.68$ 19,864.23$ 22,049.09$ 10.23$ 11.35$
2,800,000+12,641.56$ 14,030.44$ 5.23$ 5.80$ 23,956.23$ 26,589.09$ 10.45$ 11.60$
8 IN 0 3,375.92$ 3,747.27$ 2.58$ 2.86$ 4,088.44$ 4,538.17$ 5.16$ 5.73$
TURBINE 480,000 4,614.32$ 5,120.07$ 2.62$ 2.91$ 6,565.24$ 7,288.57$ 5.23$ 5.80$
CODE 14 960,000 5,871.92$ 6,516.87$ 2.84$ 3.15$ 9,075.64$ 10,072.57$ 5.69$ 6.32$
1,440,000 7,235.12$ 8,028.87$ 3.06$ 3.40$ 11,806.84$ 13,106.17$ 6.13$ 6.80$
1,920,000 8,703.92$ 9,660.87$ 3.24$ 3.60$ 14,749.24$ 16,370.17$ 6.49$ 7.20$
2,400,000 10,259.12$ 11,388.87$ 4.08$ 4.53$ 17,864.44$ 19,826.17$ 8.16$ 9.06$
3,200,000 13,523.12$ 15,012.87$ 4.64$ 5.15$ 24,392.44$ 27,074.17$ 9.29$ 10.31$
4,000,000 17,235.12$ 19,132.87$ 4.94$ 5.48$ 31,824.44$ 35,322.17$ 9.88$ 10.97$
4,800,000 21,187.12$ 23,516.87$ 5.12$ 5.68$ 39,728.44$ 44,098.17$ 10.23$ 11.35$
5,600,000+27,331.12$ 30,332.87$ 5.23$ 5.80$ 52,004.44$ 57,718.17$ 10.45$ 11.60$
10 IN 0 2,426.44$ 2,693.35$ 2.58$ 2.86$ 2,938.57$ 3,261.81$ 5.16$ 5.73$
COMPOUND 345,000 3,316.54$ 3,680.05$ 2.62$ 2.91$ 4,718.77$ 5,238.66$ 5.23$ 5.80$
CODE 15 690,000 4,220.44$ 4,684.00$ 2.84$ 3.15$ 6,523.12$ 7,239.66$ 5.69$ 6.32$
1,035,000 5,200.24$ 5,770.75$ 3.06$ 3.40$ 8,486.17$ 9,420.06$ 6.13$ 6.80$
1,380,000 6,255.94$ 6,943.75$ 3.24$ 3.60$ 10,601.02$ 11,766.06$ 6.49$ 7.20$
1,725,000 7,373.74$ 8,185.75$ 4.08$ 4.53$ 12,840.07$ 14,250.06$ 8.16$ 9.06$
2,300,000 9,719.74$ 10,790.50$ 4.64$ 5.15$ 17,532.07$ 19,459.56$ 9.29$ 10.31$
2,875,000 12,387.74$ 13,751.75$ 4.94$ 5.48$ 22,873.82$ 25,387.81$ 9.88$ 10.97$
3,450,000 15,228.24$ 16,902.75$ 5.12$ 5.68$ 28,554.82$ 31,695.56$ 10.23$ 11.35$
4,025,000+18,172.24$ 20,168.75$ 5.23$ 5.80$ 34,437.07$ 38,221.81$ 10.45$ 11.60$
8
City of Schertz
Schedule of Fees
Public Works - Water Rates
GALLONS SOLD BY METER SIZE (RESIDENTIAL AND SMALL COMMERCIAL)
METER BLOCK CURRENT NEW CURRENT NEW CURRENT NEW CURRENT NEW
GALLONS BLOCK RATE BLOCK RATE RATE 1000 RATE 1000 BLOCK RATE BLOCK RATE RATE 1000 RATE 1000
2016-17
INSIDE CITY OUTSIDE CITY
10 IN 0 5,274.86$ 5,855.10$ 2.58$ 2.86$ 6,099.15$ 6,770.05$ 5.16$ 5.73$
TURBINE 750,000 7,209.86$ 8,000.10$ 2.62$ 2.91$ 9,969.15$ 11,067.55$ 5.23$ 5.80$
CODE 16 1,500,000 9,174.86$ 10,182.60$ 2.84$ 3.15$ 13,891.65$ 15,417.55$ 5.69$ 6.32$
2,250,000 11,304.86$ 12,545.10$ 3.06$ 3.40$ 18,159.15$ 20,157.55$ 6.13$ 6.80$
3,000,000 13,599.86$ 15,095.10$ 3.24$ 3.60$ 22,756.65$ 25,257.55$ 6.49$ 7.20$
3,750,000 16,029.86$ 17,795.10$ 4.08$ 4.53$ 27,624.15$ 30,657.55$ 8.16$ 9.06$
5,000,000 21,129.86$ 23,457.60$ 4.64$ 5.15$ 37,824.15$ 41,982.55$ 9.29$ 10.31$
6,250,000 26,929.86$ 29,895.10$ 4.94$ 5.48$ 49,436.65$ 54,870.05$ 9.88$ 10.97$
7,500,000 33,104.86$ 36,745.10$ 5.12$ 5.68$ 61,786.65$ 68,582.55$ 10.23$ 11.35$
8,750,000+39,504.86$ 43,845.10$ 5.23$ 5.80$ 74,574.15$ 82,770.05$ 10.45$ 11.60$
12 IN 0 6,962.83$ 7,728.74$ 2.58$ 2.86$ 8,432.40$ 9,359.97$ 5.16$ 5.73$
TURBINE 990,000 9,517.03$ 10,560.14$ 2.62$ 2.91$ 13,540.80$ 15,032.67$ 5.23$ 5.80$
CODE 17 1,980,000 12,110.83$ 13,441.04$ 2.84$ 3.15$ 18,718.50$ 20,774.67$ 5.69$ 6.32$
2,970,000 14,922.43$ 16,559.54$ 3.06$ 3.40$ 24,351.60$ 27,031.47$ 6.13$ 6.80$
3,960,000 17,951.83$ 19,925.54$ 3.24$ 3.60$ 30,420.30$ 33,763.47$ 6.49$ 7.20$
4,950,000 21,159.43$ 23,489.54$ 4.08$ 4.53$ 36,845.40$ 40,891.47$ 8.16$ 9.06$
6,600,000 27,891.43$ 30,964.04$ 4.64$ 5.15$ 50,309.40$ 55,840.47$ 9.29$ 10.31$
8,250,000 35,547.43$ 39,461.54$ 4.94$ 5.48$ 65,637.90$ 72,851.97$ 9.88$ 10.97$
9,900,000 43,698.43$ 48,503.54$ 5.12$ 5.68$ 81,939.90$ 90,952.47$ 10.23$ 11.35$
11,550,000+52,146.43$ 57,875.54$ 5.23$ 5.80$ 98,819.40$ 109,679.97$ 10.45$ 11.60$
CURRENT
RATE 1000 RATE 1000
FH METER 99.26 110.18 7.63 8.47
Cibolo Wholesale Water Rate 3.27 3.27
9
City of Schertz
Schedule of Fees
All Departments 2015-16 2016-17
Records Requests
Standard paper copy, per page 0.10$ 0.10$
(front and back is 2 pages)
Nonstandard-size copy:
Oversize paper copy (11” X 17”)0.50$ 0.50$
Specialty paper (Mylar, blueprint, blue line, map, photographic) Actual Actual
Certified Copy- Each Certification 5.00$ 5.00$
Diskette 1.00$ 1.00$
Magnetic tape - actual cost Actual Actual
Data cartridge -actual cost Actual Actual
Tape cartridge - actual cost Actual Actual
Rewritable CD (CD-RW)1.00$ 1.00$
Non-rewritable CD (CD-R)1.00$ 1.00$
Digital video disc (DVD)3.00$ 3.00$
JAZ drive - actual cost Actual Actual
Other electronic media - actual cost Actual Actual
Miscellaneous supplies - actual cost Actual Actual
Postage and shipping charge actual cost Actual Actual
Photographs - actual cost Actual Actual
Maps - actual cost Actual Actual
Labor charge:
For locating, compiling, and 15.00$ 15.00$
reproducing, per hour (if documents are
NOT located in the immediate area and over 50 pages)
Overhead charge - % of labor charge 20%20%
Remote document retrieval charge Actual Actual
No Sales Tax shall be applied to copies of public information.
Notary Fees
Acknowledgement, Certified Copies, Jurat's, Oaths and Affirmation 6.00$ 6.00$
Protests- Per Document 5.00$ 5.00$
Convenience Fees
Credit Card Payment Over Phone 1.00$ 1.00$
Return Check Fee 25.00$ 25.00$
10
City of Schertz
Schedule of Fees
City Secretary 2015-16 2016-17
Candidate Filing Fee 25.00$ 25.00$
Licenses
Package Store 250.00$ 250.00$
Package Store Tasing 12.50$ 12.50$
Wine & Beer Retailers 87.50$ 87.50$
Wine & Beer Retailers - Off premises 30.00$ 30.00$
Late Hours 125.00$ 125.00$
Beer on Premises 75.00$ 75.00$
Wine Only - Package Store 37.50$ 37.50$
Mix Beverage Permit 375.00$ 375.00$
Mix Beverage Late Hours 75.00$ 75.00$
Caterer's Permit 250.00$ 250.00$
Retail Dealer On-Premises - Late Hours 125.00$ 125.00$
Local Cartage 15.00$ 15.00$
11
City of Schertz
Schedule of Fees
2015-16 2016-17
Non-Resident user fee- Library Card 15.00$ 15.00$
Meeting Room Fee- Non-Schertz residents, 4 hours 50.00$ 50.00$
Meeting Room Fee- After hour fee, per hour 25.00$ 25.00$
Meeting Room Cleaning Fee (Spot Cleaning)50.00$ 50.00$
Meeting Room Cleaning Fee (Whole Room)Actual Actual
Additional Fee for After Hours Cleaning, per hour 25.00$ 25.00$
Inter-Library Loans
Inter-Library Loan Postage 3.00$ REMOVE
Actual Actual
Inter-Library Loan items per day (3 day grace period)1.00$ 1.00$
Overdue Fines (3 day grace period)
All Books per day 0.25$ 0.25$
Max amount that can be charged- Adult Books, per book 1.00$ 1.00$
Max amount that can be charged- Children's Books, per book 1.00$ 1.00$
DVDs, CDs, Videos per day 0.25$ 0.25$
Max that can be charged, per item 1.00$ 1.00$
Replacement Library Card 5.00$ 5.00$
Copier, per standard page 0.15$ 0.15$
(2-sided copies are the same as 2 pages; oversized copies are the same as 2 pages)
Printing, per standard page
(2-sided copies are the same as 2 pages; oversized copies are the same as 2 pages)
Black and White 0.15$ 0.15$
Color 0.50$ 0.50$
Outgoing Fax, 1st page 1.00$ 1.00$
Per each succeeding page 0.25$ 0.25$
Lost & Damaged Materials - Cost of item
plus a processing fee 5.00$ 5.00$
Damaged DVD Case or Video Case 1.00$ 1.00$
Damaged or Missing Barcode 1.00$ 1.00$
Damaged or Missing RFID Tag 1.00$ 1.00$
Damaged or Missing DVD/Video Cover 1.00$ 1.00$
(if replaceable) plus processing fee
Toddler Tote Bag 2.50$ 2.50$
Juvenile Audiobook Bag 5.00$ 5.00$
Library
Note: if an item is lost, no late fines are assigned. If the patron loses part of the
item, they owe the full amount, and are not charged late fines. If the lost part is
returned, they will not be charged for lost materials but will then be responsible
for the previous late fines.
Inter-Library Loan Materials - Cost of item as billed by the lending library (may
include additional fines or fees assessed by the lending library)
12
City of Schertz
Schedule of Fees
Schertz Magazine 2015-16 2016-17
Display Ads:
Eighth Page for 6 mo., per month 300$ 300$
Eighth Page for 12 mo., per month 275$ 275$
Quarter Page for 6 mo., per month 550$ 550$
Quarter Page for 12 mo., per month 400$ 400$
Half Page for 6 mo., per month 1,000$ 1,000$
Half Page for 12 mo., per month 700$ 700$
Full Page for 6 mo., per month 1,500$ 1,500$
Full Page for 12 mo., per month 1,200$ 1,200$
Premium Placement:
Back Cover for 6 mo., per month 2,500$ 2,500$
Back Cover for 12 mo., per month 2,200$ 2,200$
Inside Front Cover for 6 mo., per month 2,850$ 2,850$
Inside Front Cover for 12 mo., per month 2,700$ 2,700$
Inside Back Cover for 6 mo., per month 2,200$ 2,200$
Inside Back Cover for 12 mo., per month 1,700$ 1,700$
Non-Profit Rates for Display Ads:
Quarter Page for 1 mo., per month 550$ 550$
Quarter Page for 3 mo., per month 300$ 300$
Quarter Page for 6 mo., per month 250$ 250$
Half Page for 1 mo., per month 775$ 775$
Half Page for 3 mo., per month 550$ 550$
Half Page for 6 mo., per month 375$ 375$
Full Page for 1 mo., per month 1,100$ 1,100$
Full Page for 3 mo., per month 900$ 900$
Full Page for 6 mo., per month 700$ 700$
13
City of Schertz
Schedule of Fees
Event Facilities 2015-16 2016-17
Vendor Fees
Kitchen Fee, per person 1.00$ 1.00$
Electrical Fee (Tradeshows), per Exhibitor 25.00$ 25.00$
Linens 50.00$ REMOVE
Early Open Fee (prior to normal scheduled hours), per staff member per hour 25.00$ 25.00$
Ice, one bin (80lbs)15.00$ 15.00$
Ice, unlimited 25.00$ 25.00$
Security Coordination Fee 15.00$ 15.00$
Beverage Service -$ 50.00$
Sweetheart Tickets- Pre sale 10.00$ 10.00$
Sweetheart Tickets - Night Of 10.00$ 15.00$
Civic Center - Grand Ballroom (7,198 sq. ft)
Banquet Package - includes hall rental, tables/chairs, dance floor, AV
panel access, ice, F&B(kitchen):
Sunday - Full day 1,200.00$ 1,200.00$
Sunday - Half day 950.00$ 950.00$
Mon-Thur - Full day 1,000.00$ 1,000.00$
Mon-Thur - Half day 875.00$ 875.00$
Friday through Saturday, all day (half day not available)2,100.00$ 2,100.00$
Conference package - includes hall rental, tables/chairs, access AV,
kitchen, ice:
Sunday - Full day 900.00$ 900.00$
Sunday - Half day 650.00$ 650.00$
Monday through Thursday - per day 700.00$ 700.00$
Monday through Thursday - per half day 575.00$ 575.00$
Friday through Saturday, per day (half day not available)1,800.00$ 1,800.00$
Regular Rentals
Monday through Thursday, all day 500.00$ 500.00$
Monday through Thursday, half day 375.00$ 375.00$
Friday through Saturday, all day (half day not available)1,600.00$ 1,600.00$
Sunday, all day 700.00$ 700.00$
Sunday, half day 450.00$ 450.00$
Stage 200.00$ 200.00$
Dance Floor 200.00$ 200.00$
Damage/Cancellation Deposit 500.00$ 500.00$
Audio/Visual Services (contracted)175.00$ 175.00$
Additional time, per hour 50.00$ 50.00$
Audio/Visual Panel Access 75.00$ 75.00$
Approved Setup Kit (required for catered events)25.00$ REMOVE
Cancellation fee 50.00$ 50.00$
14
City of Schertz
Schedule of Fees
Event Facilities 2015-16 2016-17
Civic Center Cut-Off Hall (Larger portion of Ballroom - 4,172 sq ft)
Banquet Package - includes hall rental, tables/chairs, dance floor, AV
panel access, ice, F&B(kitchen):
Sunday - Full day 1,000.00$ 1,000.00$
Sunday - Half day 825.00$ 825.00$
Mon-Thur - Full day 825.00$ 825.00$
Mon-Thur - Half day 750.00$ 750.00$
Friday through Saturday, all day (half day not available)1,700.00$ 1,700.00$
Conference package - includes hall rental, tables/chairs, access AV,
kitchen, ice:
Sunday - Full day 700.00$ 700.00$
Sunday - Half day 525.00$ 525.00$
Monday through Thursday - per day 525.00$ 525.00$
Monday through Thursday - per half day 450.00$ 450.00$
Friday through Saturday, per day (half day not available)1,500.00$ 1,500.00$
Regular Rentals
Monday through Thursday, per day 325.00$ 325.00$
Monday through Thursday, half day 250.00$ 250.00$
Friday and Saturday, per day 1,200.00$ 1,200.00$
Sunday, per day 500.00$ 500.00$
Sunday, half day 325.00$ 325.00$
Stage 200.00$ 200.00$
Dance Floor 200.00$ 200.00$
Damage/Cancellation Deposit 500.00$ 500.00$
Audiovisual Services for 4 hours (Both rooms)175.00$ 175.00$
Additional time, per hour 50.00$ 50.00$
Audio/Visual Panel Access 75.00$ 75.00$
Approved Setup Kit (required for catered events)25.00$ REMOVE
Cancellation fee 50.00$ 50.00$
15
City of Schertz
Schedule of Fees
Event Facilities 2015-16 2016-17
Civic Center Conference Hall (Smaller portion of Ballroom - 3,026 sq ft)
Conference package - includes hall rental, tables/chairs, access AV,
kitchen, ice:
Sunday - Full day 600.00$ 600.00$
Sunday - Half day 450.00$ 450.00$
Monday through Thursday - per day 450.00$ 450.00$
Monday through Thursday - per half day 375.00$ 375.00$
Regular Rentals
Monday through Thursday, per day 250.00$ 250.00$
Monday through Thursday, half day 175.00$ 175.00$
Sunday, per day 400.00$ 400.00$
Sunday, half day 250.00$ 250.00$
Not Available on Friday and Saturday
Audiovisual Access 25.00$ 25.00$
Approved Setup Kit (required for catered events)25.00$ REMOVE
Cancellation fee 50.00$ 50.00$
Civic Center - Bluebonnet Hall (2,500 sq ft)
Banquet Package - includes hall rental, tables/chairs, AV panel access,
ice, kitchen:
Sunday - Full day 400.00$ 400.00$
Sunday - Half day 300.00$ 300.00$
Mon-Thur - Full day 325.00$ 325.00$
Mon-Thur - Half day 225.00$ 225.00$
Friday through Saturday, all day (half day not available)600.00$ 675.00$
Conference package - includes hall rental, tables/chairs, access AV,
kitchen, ice:
Sunday - Full day 400.00$ 400.00$
Sunday - Half day 300.00$ 300.00$
Monday through Thursday - per day 325.00$ 325.00$
Monday through Thursday - per half day 225.00$ 225.00$
Friday through Saturday, per day (half day not available)600.00$ 600.00$
Regular Rentals
Monday through Thursday, all day 225.00$ 225.00$
Monday through Thursday, half day 125.00$ 125.00$
Friday through Saturday, all day (half day not available)500.00$ 575.00$
Sunday, all day 300.00$ 300.00$
Sunday, half day 200.00$ 200.00$
Damage/Cancellation Deposit 200.00$ 200.00$
Kitchen 75.00$ 75.00$
Audiovisual Access 25.00$ 25.00$
Approved Setup Kit (required for catered events)25.00$ REMOVE
Cancellation fee 50.00$ 50.00$
16
City of Schertz
Schedule of Fees
Event Facilities 2015-16 2016-17
Community Center North- 3501 Morning Dr (2,006 sq ft)
Monday-Thursday, all day 150.00$ 150.00$
Monday-Thursday, half day 100.00$ 100.00$
Friday-Saturday, all day (half day not available)300.00$ 300.00$
Sunday, all day 200.00$ 200.00$
Sunday, half day 125.00$ 125.00$
Damage/Cancellation Deposit 200.00$ 200.00$
Approved Setup Kit (required for catered events)25.00$ REMOVE
Cancellation fee 50.00$ 50.00$
Community Center Central
Monday- Thursday, per day 150.00$ 150.00$
Monday - Thursday, half day 100.00$ 100.00$
Friday-Saturday, per day 400.00$ 400.00$
Sunday, per day 250.00$ 250.00$
Sunday, half day 150.00$ 150.00$
Stage 100.00$ 100.00$
Projector/Screen/Microphone 50.00$ 50.00$
Damage/Cancellation Deposit 200.00$ 200.00$
Approved Setup Kit (required for catered events)25.00$ REMOVE
Cancellation fee 50.00$ 50.00$
Churches, governmental entities, 501 (c) 3 and civic groups
who provide a service to the residents of Schertz will
receive a 25% discount on the above facility rental rates.
17
City of Schertz
Schedule of Fees
Parks and Recreation 2015-16 2016-17
Pavilion Rental Rates - Small Pavilion
Schertz Residents
Rental Fee (6am-2pm) or (3pm-11pm)55.00$ 55.00$
Rental Fee all day 85.00$ 85.00$
Monday-Thrusday 50% discount on rates
Non-Schertz Residents
Rental Fee (6am-2pm) or (3pm-11pm)90.00$ 90.00$
Rental Fee all day 135.00$ 135.00$
Monday-Thrusday 50% discount on rates
Pavilion Rental Rates - Large Pavilion
Schertz Residents
WITHOUT KITCHEN
Rental Fee 100.00$ 100.00$
Monday-Thrusday 50% discount on rates
WITH KITCHEN/RESTROOMS
Rental Fee 200.00$ 200.00$
Monday-Thrusday 50% discount on rates
Damage Deposit 200.00$ 200.00$
Non-Schertz Residents
WITHOUT KITCHEN
Rental Fee 150.00$ 150.00$
Monday-Thrusday 50% discount on rates
WITH KITCHEN/RESTROOMS
Rental Fee 300.00$ 300.00$
Monday-Thrusday 50% discount on rates
Damage Deposit 200.00$ 200.00$
18
City of Schertz
Schedule of Fees
Parks and Recreation 2015-16 2016-17
Pools
Daily Rates
Per swimmer per entry 2.00$ 2.00$
Daily pass 3.00$ 3.00$
Admission is free for children under the
age of 2 years.
Season Rates-Maximum per season pass is six (6) members
Schertz Residents
Individual rate 40.00$ 40.00$
2 member rate 50.00$ 50.00$
3 member rate 60.00$ 60.00$
4 member rate 70.00$ 70.00$
5 member rate 80.00$ 80.00$
6 member rate 90.00$ 90.00$
Non-Schertz Residents
Individual rate 70.00$ 70.00$
2 member rate 80.00$ 80.00$
3 member rate 90.00$ 90.00$
4 member rate 100.00$ 100.00$
5 member rate 110.00$ 110.00$
6 member rate 120.00$ 120.00$
Regular Preschool/Child Care Center
Teacher/Child Care Attendant and 5
students per pass.
In City 80.00$ 80.00$
Out of City 120.00$ 120.00$
19
City of Schertz
Schedule of Fees
Parks and Recreation 2015-16 2016-17
Swimming lessons rate
Schertz Residents - per child ****
Non- Residents - per child ****
Pool Reservations
Schertz Residents
1 to 50 People ****
51 to 100 People ****
101 to 150 People ****
151 to 200 People ****
201 to 250 People ****
251 to 293 People ****
Non-Residents
1 to 50 People ****
51 to 100 People ****
101 to 150 People ****
151 to 200 People ****
201 to 250 People ****
251 to 293 People ****
Northcliffe Pool
Schertz Residents
1 to 50 People (2 hours maximum)****
50 to 100 People (2 hours maximum)****
Non-Residents
1 to 50 People (2 hours maximum)****
50 to 100 People (2 hours maximum)****
**THESE RATES NOW SET BY CONTRACTOR**
**THESE RATES NOW SET BY CONTRACTOR**
20
City of Schertz
Schedule of Fees
Animal Services 2015-16 2016-17
Pet License
Standard fee,5.00$ 5.00$
license per year per spayed or neutered animal
Standard fee,10.00$ 10.00$
license per year per un-spayed or un-neutered animal
Replacement tags (if lost)2.00$ 2.00$
Permits - A permit shall be issue after payment of application fee:
Kennel authorized to house 10 or less dogs or cats 75.00$ 75.00$
Kennel authorized to house more than 10 but less than 50 150.00$ 150.00$
Kennel authorized to house 50 or more 200.00$ 200.00$
Pet Shop 100.00$ 100.00$
Grooming Shop 30.00$ 30.00$
Commercial Riding Stable 10 or less 75.00$ 75.00$
Commercial Riding Stable 11-50 150.00$ 150.00$
Commercial Riding Stable 51 or more 200.00$ 200.00$
Annual Crescent Bend Riding Permit, per horse 100.00$ 100.00$
Auction 100.00$ 100.00$
Zoological Park 200.00$ 200.00$
Animal Exhibition/Circus/Petting Zoo 100.00$ 100.00$
Guard Dog Training Center 200.00$ 200.00$
Obedience Training Center 50.00$ 50.00$
Commercial Establishment Using a Guard Dog 75.00$ 75.00$
Commercial Annual Sellers Permit 150.00$ 150.00$
Dangerous Dog Permit 200.00$ 200.00$
Temporary Permit* - not to exceed 7 days 15.00$ 15.00$
*Good for Crescent Bend Riding (per horse), Animal Exhibition/Circus/Petting Zoo, and
Auction Permits
Temporary Animal Sales Permit (Pet Expos), not to exceed 3 days 30.00$ 30.00$
Impoundment Fee: An impoundment fee must be paid for each captured animal
Dog/Cat Impoundment
Within a 1 year period
1st Offense
Neutered 30.00$ 30.00$
Un-neutered 45.00$ 45.00$
2nd Offense
Neutered 50.00$ 50.00$
Un-neutered 70.00$ 70.00$
3rd Offense
Neutered 100.00$ 100.00$
Un-neutered 120.00$ 120.00$
4th Offense
Neutered 150.00$ 150.00$
Un-neutered 170.00$ 170.00$
Each Additional Offense
Base- Neutered 150.00$ 150.00$
Base- Un-neutered 170.00$ 170.00$
Per Additional Offense 50.00$ 50.00$
Fowl or other small animal 30.00$ 30.00$
Livestock 75.00$ 75.00$
21
City of Schertz
Schedule of Fees
Animal Services 2015-16 2016-17
Zoological/Circus animal 200.00$ 200.00$
22
City of Schertz
Schedule of Fees
Animal Services 2015-16 2016-17
Boarding Fee: A boarding fee must be paid for each animal
Dog/Cat, per day 15.00$ 15.00$
Fowl or other small animal, per day 10.00$ 10.00$
Reptile, per day 30.00$ 30.00$
Livestock, per day 50.00$ 50.00$
Zoological/Circus animal, per day 200.00$ 200.00$
Surrender Fee: Charge per animal with proof of Schertz residency
Fowl/Reptile/Small Animal 10.00$ 10.00$
Dog/Cat neutered/spayed /current rabies cert./heartworm negative 35.00$ 35.00$
Dog/Cat all other surrenders 65.00$ 65.00$
Small Livestock 50.00$ 50.00$
Large Livestock 100.00$ 100.00$
Zoological or Circus 200.00$ 200.00$
Litter Fee (3 or more animals under 2 months old)75.00$ 75.00$
Quarantine Fee:
Dog/Cat 50.00$ 50.00$
Plus Daily Charge per animal for boarding 15.00$ 15.00$
Micro Chipping 15.00$ 15.00$
Trap Rental Fee:
Trap Deposit, refundable when trap is returned 75.00$ 75.00$
Trap Rental Fee, per day 5.00$ 5.00$
23
City of Schertz
Schedule of Fees
Marshal Service 2015-16 2016-17
Health Division
Food Establishment Fees:
Non-Profit Organizations (regardless of number of employees)100.00$ 100.00$
1-3 Employees 150.00$ 150.00$
4-6 Employees 285.00$ 285.00$
7-10 Employees 540.00$ 540.00$
11-20 Employees 575.00$ 575.00$
21+ Employees 725.00$ 725.00$
Temporary Food and/or Beverage Establishment 50.00$ 50.00$
Food Handlers Class, for each employee attending the class 30.00$ REMOVE
Food Handler Permit, online class 20.00$ REMOVE
Mobile Vendors 150.00$ 150.00$
Public and HOA Swimming Pool License 110.00$ 110.00$
Foster Care 50.00$ 50.00$
Re-inspection fees 75.00$ 75.00$
* City Code Violation Court Fee 10.00$ 10.00$
Nuisance Abatement Administrative Fee 100.00$ 100.00$
Sanitation Inspection Fees - Outside of City
Hourly Charge, one hour minimum 50.00$ 50.00$
Mileage over 15 miles, per mile 5.00$ 5.00$
Administrative Fee 15%15%
*Any citation issued by individuals defined in Section 22-40 (Authority to issue notice of
violations), shall be able to collect a dismisal fee from an individual who abates such
violation upon their court appearance. Judge Stephen Takas suggested that we charge a
dismisal fee to remedy some of the expenses incurred from the issuance of such citation.
24
City of Schertz
Schedule of Fees
Police Department 2015-16 2016-17
Alarm Permit Fees
Residential - Annually 10.00$ 10.00$
Tier 1 Commercial 25.00$ 25.00$
Tier 2 Commercial site alarm system required 50.00$ 50.00$
under local, state or national code
Alarm Service Fees: Other than Burglar Alarms
4TH False Alarm within 12 Mo. Period 100.00$ 100.00$
5TH False Alarm within 12 Mo. Period 150.00$ 150.00$
6TH False Alarm within 12 Mo. Period 200.00$ 200.00$
7TH False Alarm within 12 Mo. Period 250.00$ 250.00$
8TH False Alarm within 12 Mo. Period 500.00$ 500.00$
Others After 8TH within 12 Mo. Period 500.00$ 500.00$
Burglar Alarm Service Fees:
4TH False Alarm within 12 Mo. Period 50.00$ 50.00$
5TH False Alarm within 12 Mo. Period 50.00$ 50.00$
6TH False Alarm within 12 Mo. Period 75.00$ 75.00$
7TH False Alarm within 12 Mo. Period 75.00$ 75.00$
8TH False Alarm within 12 Mo. Period 100.00$ 100.00$
Others After 8TH within 12 Mo. Period 100.00$ 100.00$
Miscellaneous Fees
Accident Reports, each 6.00$ 6.00$
Fingerprints, per set 10.00$ 10.00$
Solicitor/Peddler Permit 50.00$ 50.00$
Background Check Fee 10.00$ 10.00$
25
City of Schertz
Schedule of Fees
Fire Department and Haz-Mat Fees 2015-16 2016-17
Permit Fee Schedule
Certificate of Occupancy - Inspections 50.00$ 50.00$
License Inspections 50.00$ 50.00$
Base Fire Suppression System Installation 100.00$ 100.00$
Additional installation charge, per sprinkler head 1.00$ 1.00$
Base Fire Alarms Installation 100.00$ 100.00$
Additional installation charge, per initiating or notification device 1.00$ 1.00$
Re-Inspection 45.00$ 45.00$
Smoke Control System Plan (for each review)75.00$ 75.00$
Flammable or combustible liquid tanks, each review 150.00$ 150.00$
Flammable or combustible gas tanks, each review 150.00$ 150.00$
After hours fee, per hour per inspector 60.00$ 60.00$
(beyond the hours of 8:00 a.m. to 5:00 p.m.)
Plan Review Fees, construction per hour 50.00$ 50.00$
Fireworks display permit 250.00$ 250.00$
Operational Permits
Open or Control Burn - Commercial 150.00$ 150.00$
Open or Control Burn - Non-commercial 25.00$ 25.00$
Tents 50.00$ 50.00$
Cutting and Welding 50.00$ 50.00$
Explosives 50.00$ 50.00$
Flammable Storage 50.00$ 50.00$
Carnivals and Fairs 50.00$ 50.00$
Food Booth (per booth, per event)25.00$ 25.00$
Mobile Food Establistments (annual)25.00$ 25.00$
Battery Systems 50.00$ 50.00$
Combustible Dust Product Options 50.00$ 50.00$
Cryogenic Fluids 50.00$ 50.00$
Haz-mat 50.00$ 50.00$
Lumberyards 50.00$ 50.00$
Spraying and Dipping 50.00$ 50.00$
Storage of Tires 50.00$ 50.00$
Operation Charges
Hazardous materials operations service fees.
(a) Communications. The following fees for dispatching shall be charged for fire
department response:
1. Dispatch fee, $ 75.00 $ 75.00
Administration Fee 15%15%
(b) Apparatus. The following fees shall be charged for emergency response
operations.
1. Class A pumper, per hour 250.00$ 250.00$
2. Aerial apparatus, per hour 300.00$ 300.00$
3. Tanker apparatus, per hour 175.00$ 175.00$
4. Rescue truck, per hour 150.00$ 150.00$
5. Command unit, per hour 75.00$ 75.00$
6. Rescue boat, per hour 150.00$ 150.00$
7. Rehab unit, per hour 75.00$ 75.00$
8. Staff vehicle, per hour 75.00$ 75.00$
9. Brush truck, per hour 150.00$ 150.00$
NOTE: Non-emergency, standby and returning to services fees will be charged at
one-half the hourly rate:
26
City of Schertz
Schedule of Fees
Fire Department and Haz-Mat Fees 2015-16 2016-17
(c) Personnel. The following fees for personnel shall be charged for operations
response:
1. Firefighter, per hour 20.00$ 20.00$
2. Haz-mat tech, per hour 25.00$ 25.00$
3. Haz-mat operation, per hour 25.00$ 25.00$
4. Fire inspectors, per hour 30.00$ 30.00$
5. Fire investigators, per hour 30.00$ 30.00$
6. Incident commander, per hour 40.00$ 40.00$
(d) Haz-mat. The following fees for Haz-mat supplies shall be charged for
operations response:
1. Absorbent, per bag 15.00$ 15.00$
2. Drum liners, each 10.00$ 10.00$
3. Lite-dri, per 50 lb. bag 20.00$ 20.00$
4. Top-sol, per bag 30.00$ 30.00$
5. Barricade tape, per roll 20.00$ 20.00$
6. Poly sheeting, per roll 50.00$ 50.00$
7. Plug and patch kit, Plug 'n Dike 205.00$ 205.00$
8. Plug and Dike Kit Complete 50.00$ 50.00$
9. Disposable coveralls, each 45.00$ 45.00$
10. Latex gloves, pair 5.00$ 5.00$
11. Disposable goggles, pair 10.00$ 10.00$
12. Broom, each 40.00$ 40.00$
13. Shovel, each 50.00$ 50.00$
(e) Protective equipment replacement. The following fees for damaged or
contaminated protective equipment shall be charged for operations response:
1. Helmet, each 250.00$ 250.00$
2. Nomex hood, each 35.00$ 35.00$
3. Bunker coat, each 989.00$ 989.00$
4. Bunker pants, each 983.00$ 983.00$
5. FF boots, pair 120.00$ 120.00$
6. FF gloves, pair 49.00$ 49.00$
(f) Firefighting agents. The following fees for specialized fire protection supplies
shall be charged for operations response:
1. AFFF foam, per gallon 75.00$ 75.00$
2. Class A foam, per gallon 65.00$ 65.00$
3. Light water, per gallon 20.00$ 20.00$
4. Micro-clean, per gallon 30.00$ 30.00$
5. Star-dust, per 15 lb. bag 25.00$ 25.00$
27
City of Schertz
Schedule of Fees
Fire Department and Haz-Mat Fees 2015-16 2016-17
(g) Firefighting equipment replacement. The following fee for damaged or
contaminated equipment shall be charged for operations response:
1. Hose 1.0" (each 50')255.00$ 255.00$
2. Hose 1.75" (each 50')350.00$ 350.00$
3. Hose 2.5" (each 50')172.00$ 172.00$
4. Hose 3.0" (each 50')225.00$ 225.00$
5. Hose 5.0" (each 100')950.00$ 950.00$
6. Hose 1.0" booster (each 50')270.00$ 270.00$
7. SCBA air mask (each)375.00$ 375.00$
8. SCBA air mask complete (each)6,555.00$ 6,555.00$
9. SCBA spare cylinders (each)1,255.00$ 1,255.00$
10. 12' roof ladder (each)330.00$ 330.00$
11. 14' roof ladder (each)375.00$ 375.00$
12. 24' extension ladder (each)525.00$ 525.00$
13. 35' extension ladder (each)925.00$ 925.00$
14. A-frame combo ladder (each)480.00$ 480.00$
15. PASS alarm (each)200.00$ 200.00$
16. Portable radio, each 3,400.00$ 3,400.00$
17. Fog nozzle 1.5-1.75", each 645.00$ 645.00$
18. Fog nozzle 1.0", each 540.00$ 540.00$
19. Fog nozzle 2.5", each 705.00$ 705.00$
20. Fog nozzle 2.5" master, each 847.00$ 847.00$
21. Stacked tips w/shaper, each 566.00$ 566.00$
22. Deluge monitor w/o pie and tips, each 2,575.00$ 2,575.00$
23. Foam aerator tube, each 396.00$ 396.00$
24. 8' attic folding ladder, each 230.00$ 230.00$
25. 10" attic folding ladder, each 255.00$ 255.00$
Note: This list is not all-inclusive of equipment that may be damaged or
contaminated during the course of a response effort. Additional equipment that
is not herein listed may be charged at actual replacement costs.
(h) Rescue equipment used. The following fees for rescue equipment used shall
be charged for operations response:
1. Spreaders, per hour 125.00$ 125.00$
2. Cutters, per hour 125.00$ 125.00$
3. Ram(s), per hour 125.00$ 125.00$
4. Porta power, per hour 55.00$ 55.00$
5. Ajax cutting tool, per hour 35.00$ 35.00$
6. Saws-all, per hour 65.00$ 65.00$
7. Air impact tools, per hour 85.00$ 85.00$
8. Oxygen with mask, per hour 90.00$ 90.00$
9. Air bags, per hour 175.00$ 175.00$
(i) Fire equipment used.
28
City of Schertz
Schedule of Fees
Fire Department and Haz-Mat Fees 2015-16 2016-17
The following fees for fire equipment used shall be charged for operations
response:
1. Camera w/pictures, each set 35.00$ 35.00$
2. Cellular phone w/long dist. Chg.25.00$ 25.00$
3. Command light 250.00$ 250.00$
4. Tripod light, each 25.00$ 25.00$
5. Hand lights, each 15.00$ 15.00$
6. Water extinguisher, each 15.00$ 15.00$
7. ABC extinguisher, each 40.00$ 40.00$
8. CO2 extinguisher, each 40.00$ 40.00$
9. Chain Saw, per hour 40.00$ 40.00$
10. Rescue (K-12) saw, per hour 40.00$ 40.00$
11. Generator, per hour 45.00$ 45.00$
12. PPV fans, per hour 50.00$ 50.00$
13. Halligan tool 20.00$ 20.00$
14. Bolt cutters (HD)20.00$ 20.00$
15. Salvage covers, each 25.00$ 25.00$
16. Hall runner, each 15.00$ 15.00$
17. Rolls of plastic, each 30.00$ 30.00$
18. Gas plug/gasoline plug kit 45.00$ 45.00$
19. Explosive meter 180.00$ 180.00$
20. SCBA, each 75.00$ 75.00$
21. Refill SCBA bottle, each 8.00$ 8.00$
22. Barricade/scene tape 20.00$ 20.00$
23. Tank, portable/fold-a-tank 150.00$ 150.00$
24. Flappers/fire brooms, each 10.00$ 10.00$
25. K-Tool 20.00$ 20.00$
26. Stokes basket w/bridle 85.00$ 85.00$
27. Windshield tool 10.00$ 10.00$
28. Kendrix extrication device 95.00$ 95.00$
29. All other non-listed items Cost Cost
plus administration fee 15%15%
29
City of Schertz
Schedule of Fees
EMS 2015-16 2016-17
Response Services
Aid Call 200.00$ 200.00$
Air Medical Assist Call 700.00$ 700.00$
BLS Non- Emergency 1,090.00$ 1,090.00$
BLS Emergency 1,210.00$ 1,210.00$
ALS Non Emergency 1,230.00$ 1,230.00$
ALS Emergency No Specialty Care 1,440.00$ 1,440.00$
ALS Emergency W \ Specialty Care 1,600.00$ 1,600.00$
Mileage, per mile 20.00$ 20.00$
Other Services
Ambulance Standby, per hour 125.00$ 125.00$
Gator Standby, per hour 95.00$ 95.00$
AED Supplies Actual Actual
CPR Class and Supplies Actual Actual
System Continuing Education Actual Actual
Vaccinations Actual Actual
EMT Class 1,000.00$ 1,000.00$
Passport to Care - Single (insured)50.00$ 50.00$
Passport to Care - Family (insured)60.00$ 60.00$
Passport to Care - Single (Not insured)65.00$ 65.00$
Passport to Care - Family (Not insured)75.00$ 75.00$
Per Capita 13.75$ 14.03$
30
City of Schertz
Schedule of Fees
Planning and Zoning 2015-16 2016-17
Plat recording service:
Fees assessed are due prior to recording:
Plat recording fee is equal to the fee charged by the County Clerks Office
Annexation Petition by Property Owner - Plus all related fees 750.00$ 750.00$
Zone Change
Zone change for 0 to 2 acres 650.00$ 650.00$
Zone change for 2+ to 5 acres 1,000.00$ 1,000.00$
Zone change for 5+ to 20 acres 2,000.00$ 2,000.00$
Zone change for 20+ to 50 acres 3,500.00$ 3,500.00$
Zone change for 50+ to 100 acres 4,000.00$ 4,000.00$
Zone change for 100+ acres 6,000.00$ 6,000.00$
Specific Use Permit (SUP) - plus other applicable items (i.e. Site Plan)
Specific Use Permit (SUP) for 0 to 2 acres 650.00$ 650.00$
Specific Use Permit (SUP) for 2+ to 5 acres 1,000.00$ 1,000.00$
Specific Use Permit (SUP) for 5+ to 20 acres 2,000.00$ 2,000.00$
Specific Use Permit (SUP) for 20+ to 50 acres 3,500.00$ 3,500.00$
Specific Use Permit (SUP) for 50+ to 100 acres 4,000.00$ 4,000.00$
Specific Use Permit (SUP) for 100+ acres 6,000.00$ 6,000.00$
Building addition of a current/legal SUP 500.00$ 500.00$
Master Development Plan
All phased developments and PDD's 1,500.00$ 1,500.00$
Master Development Plan Amendment (minor revision)500.00$ 500.00$
Preliminary Plat
0 to 50 acres 2,000.00$ 2,000.00$
greater than 50 acres 3,000.00$ 3,000.00$
Final Record Plat or Re-plat
0 to 50 acres 1,500.00$ 1,500.00$
greater than 50 acres 2,000.00$ 2,000.00$
Revised Final Plat (minor)500.00$ 500.00$
Amended Plat 1,500.00$ 1,500.00$
Minor Plat 1,500.00$ 1,500.00$
Vacate Plat 1,500.00$ 1,500.00$
Plat Time Extension - plus all related fees 250.00$ 250.00$
Street and Subdivision Name Changes 1,500.00$ 1,500.00$
31
City of Schertz
Schedule of Fees
Planning and Zoning 2015-16 2016-17
Site Plan 1,500.00$ 1,500.00$
Amended Site Plan (minor)500.00$ 500.00$
Time Extension 250.00$ 250.00$
Park Fees - Residential
Land Dedication: one (1) acre per 100 dwelling unit
Fee in Lieu of Land Dedication: per dwelling unit 350.00$ 350.00$
Park Development Fee: Per Dwelling unit 650.00$ 650.00$
Park Fees - Multi-Family
Land Dedication: one (1) acre per 100 dwelling unit
Fee in Lieu of Land Dedication; per dwelling unit:350.00$ 350.00$
Park Development Fee: Per Dwelling unit 650.00$ 650.00$
Miscellaneous
Tree Mitigation, inch of DBH - Plus all related fees 100.00$ 100.00$
Second and subsequent development reviews per quarter hour 300.00$ 300.00$
Zoning Verification Letter - Single tract of land per Tract 150.00$ 150.00$
Certificate of Determination - Single Tract of Land per Tract 150.00$ 150.00$
Postponement of any Public Hearing by the Applicant 350.00$ 350.00$
Appeals and requests for amendments
Considered by City Council,the Planning &Zoning Commission,or the Board of
Adjustment as allowed by the Unified Development Code:750.00$ 750.00$
Variance and/or Waivers
Unified Development Code, ea.500.00$ 500.00$
Building Code, ea.500.00$ 500.00$
Driveway width waiver requests will not be assessed with the waiver fee
Copies, Plans, and Maps:
Unified Development Code 50.00$ 50.00$
Public Works Specification Manual 50.00$ 50.00$
Staff Review - Application completeness review, internal SDR (staff)
review & meeting with applicant to review application package.
Fee included in all applications.
32
City of Schertz
Schedule of Fees
Inspections 2015-16 2016-17
Building Permit Fees
New Construction Per Square Foot - Residential 75.00$ 75.00$
New Construction - Commercial Cost Cost
Review of Projects and Construction Plans with a cost of $5,000 or greater,as %of
Permit Fee 50%50%
All plan review fees that follow are subject to a 15% administrative fee
Drainage Plan Review, per hour (2 hour minimum)100.00$ 100.00$
Preliminary Plan Review, per hour (2 hour minimum)100.00$ 100.00$
Irrigation Plan Review, per hour (2 hour minimum)100.00$ 100.00$
Additional Plan Review (ie Revised), per hour (1 hour minimum)100.00$ 100.00$
Commercial/Civil Express Plan Review, per hour (2 hour minimum)*TBD TBD
Commercial/Civil Outsource Plan Review*Actual Actual
*Deposit Required
Construction beginning without permit, pay additional:200.00$ 200.00$
Failure to Request Inspection, per trade 100.00$ 100.00$
Failure to Obtain Contractors License/Provide Insurance 100.00$ 100.00$
Permit Fees:
Cost of Construction (Cost)
$0.00 to $1,000.00 50.00$ 50.00$
$1,001.00 to $15,000.00, for each additional $1,000 and fraction thereof 8.00$ 8.00$
$15,001.00 to $50,000.00, for each additional $1,000 and fraction thereof 7.00$ 7.00$
$50,001 and up, for each additional $1,000 and fraction thereof 6.00$ 6.00$
Following Use The Cost of Construction (Cost) Table:
Flatwork/Deck Cost Cost
Accessory Buildings Cost Cost
Patio/Patio Cover Cost Cost
Roof Replacement Cost Cost
With a Roof Replacement No Charge for Solar Panel Reinstallation Permit
Window Replacement Cost Cost
Swimming Pools in Ground Cost Cost
Swimming Pools above Ground Cost Cost
Sign Cost Cost
Foundation Repair Cost Cost
Fence (New and Replacement)50.00$ 50.00$
Siding/Fascia 75.00$ 75.00$
Gutters 50.00$ 50.00$
Temporary Building or Structure 50.00$ 50.00$
Moving Permit Fee 100.00$ 100.00$
Demolition Permit Fee 60.00$ 60.00$
Mobile Home Permit Fee (plus sub-trades as necessary)25.00$ 25.00$
Certificate of Occupancy 50.00$ 50.00$
Pre Certificate of Occupancy Inspection 200.00$ 200.00$
Failure to Obtain Certificate of Occupancy 200.00$ 200.00$
33
City of Schertz
Schedule of Fees
Inspections 2015-16 2016-17
Compliance Inspection, each trade 50.00$ 50.00$
Temporary Sign 30.00$ 30.00$
Development Sign 100.00$ 100.00$
Banner 25.00$ 25.00$
Street Span Banner 25.00$ 25.00$
Garage Sale Permit; Includes 2 signs, limit 4 events per year 22.00$ 22.00$
HOA Garage Sale Permit 50.00$ 50.00$
Two additional garage sale signs; each 5.00$ 5.00$
Home Occupation Permit (annually)35.00$ 35.00$
Electrical Permit Fees
Electrical Repair/Replacement 60.00$ 60.00$
New Construction per building/unit 100.00$ 100.00$
Mechanical Permit Fees
Mechanical Repair/Replacement 60.00$ 60.00$
New Construction per building/unit 100.00$ 100.00$
Plumbing Permit Fees
Plumbing Repair/Replacement 60.00$ 60.00$
New Construction per building/unit 100.00$ 100.00$
Lead Solder Test 15.00$ 15.00$
Irrigation Permit Fees
Permit Fee 60.00$ 60.00$
plus per sprinkler head 1.00$ 1.00$
plus per backflow or RPZ 3.00$ 3.00$
subsequent to the installation of the piping or equipment served, each
Re-Inspection Fees
Each re-inspection, per trade 75.00$ 75.00$
Re-inspections after first, per trade 100.00$ 100.00$
NOTE: if re-inspection has been called for and the second inspection revealed
the original turn down items have not been corrected in part or whole, in
addition to the above fees, a seventy-two (72) hour notice of inspection shall be
required before another re-inspection will be conducted
No inspection fees will be charged for sites located on Main St.
34
City of Schertz
Schedule of Fees
Inspections 2015-16 2016-17
Licenses/Registrations:
General Contractor (Initial)150.00$ 150.00$
General Contractor (Renewal)100.00$ 100.00$
Master Electrician (Initial) State of Texas Issued N/C N/C
Master Electrician (Renewal) State of Texas Issued N/C N/C
Journeyman Electrician (Annually) State of Texas Issued N/C N/C
Apprentice/Wireman Electrician (Annually) State of Texas Issued N/C N/C
Mechanical Contractor (Annually) State of Texas Issued N/C N/C
Plumbing Contractor (Annually)* State of Texas Issued N/C N/C
Irrigation (Annually) State of Texas Issued N/C N/C
Backflow Tester - State of Texas Issued N/C N/C
Sign Contractor (Initial)50.00$ 50.00$
Sign Contractor (Renewal)40.00$ 40.00$
Electrical Sign Contractor (Initial) State of Texas Issued N/C N/C
Electrical Sign Contractor (Renewal) State of Texas Issued N/C N/C
Electric Sign Journeyman Electrician (Annually) State of Texas Issued N/C N/C
Electric Sign Apprentice/Wireman Electrician (Annually) State of Texas Issued N/C N/C
Utility Contractor (Annually)50.00$ 50.00$
Mobile Home Park (Annually)40.00$ 40.00$
*N/C - No Charge for license per state law
Miscellaneous Fees
Additional Permit Copies 5.00$ 5.00$
Street Name Change on Permit 30.00$ 30.00$
Duplicate of Licenses/Registrations 5.00$ 5.00$
Address Corrections 30.00$ 30.00$
Notary Public 6.00$ 6.00$
Administrative Fee for Cancellation of Permit 10% of
permit fee
10% of
permit fee
For any item not specifically included in the preceding schedule, the
Development Services Department shall establish a fee consistent with
the level of work and necessary inspections established by the schedule
and the applicant shall be advised accordingly.
35
City of Schertz
Schedule of Fees
G.I.S.2015-16 2016-17
Available Maps: Municipal & Extraterritorial Jurisdiction Boundary Map,
Current Zoning Map and Major/Minor Thoroughfare Map
Standard size 11" x 17"5.00$ 5.00$
Standard size 30" x 40"30.00$ 30.00$
Optional size 8.5" x 11"5.00$ 5.00$
Optional size 17" x 22"20.00$ 20.00$
Optional size 22" x 34"35.00$ 35.00$
Optional size 34" x 44"75.00$ 75.00$
Standard size maps are available for download in Portable Document Format
(PDF) on the City Website free of charge. www.schertz.com/maps_gis.html
36
City of Schertz
Schedule of Fees
Engineering 2015-16 2016-17
Grading and Clearing Permit - Acreage
For non-agricultural purposes
Below 5 acres 100.00$ 100.00$
5 to 20 acres 250.00$ 250.00$
Per acre over 20, plus base charge for 20 acres 3.00$ 3.00$
Over 100 acres 490.00$ 490.00$
Development Permit
% of total valuation of public infrastructure improvements 1%1%
Reinspection Fee 50.00$ 50.00$
Grading and Clearing Permit Fees are waived for applicants representing Home Owner's
Associations proposing maintenance activities in drainage easements.
37
City of Schertz
Schedule of Fees
Drainage Fees 2015-16 2016-17
Charge Per Residence 5.20$ 5.20$
Commercial, per LUE 5.20$ 5.20$
Floodplain Permit 20.00$ 20.00$
38
City of Schertz
Schedule of Fees
2015-16 2016-17
Water Deposit
In City 125.00$ 125.00$
Out of City 150.00$ 150.00$
Commercial 100.00$ 100.00$
or 2 1/2 times estimated monthly billing 2.5 times 2.5 times
Disconnect Fee 20.00$ 20.00$
Extension Fee 5.00$ 5.00$
2 free extensions
Transfer Fee 10.00$ 10.00$
Garbage Deposit
Residential 25.00$ 25.00$
Commercial 100.00$ 100.00$
or 2 1/2 times estimated monthly billing 2.5 times 2.5 times
Meter Flow Test
After Hours Disconnect/Reconnect 50.00$ 50.00$
City Field Test 10.00$ 10.00$
City Meter Bench Flow Test 25.00$ 25.00$
Schertz Seguin Water Customers 4.00$ 4.00$
Non-Schertz Seguin Customer 15.00$ 15.00$
Extended Absence Charge 10.00$ 10.00$
Re-Installation Fee, per hour 50.00$ 50.00$
Fire Hydrant Fee
Deposit 200.00$ 200.00$
Service Fee 50.00$ 50.00$
Base Rate 90.00$ 90.00$
Business Office
39
City of Schertz
Schedule of Fees
2015-16 2016-17
Chipping charges, per half hour 25.00$ 25.00$
2015-16 2016-17
Residential:
Zone I: Once a week pick up
One 96 gallon cart provided by franchisee, per month 12.05$ 12.05$
Residents requesets 2 carts total:18.05$ 18.05$
Resident requests 3 carts total:24.08$ 24.08$
Resident requests 4 carts total:30.09$ 30.09$
Recycling Fee, per month/container 1.99$ 1.99$
Zone 2: Single Family, twice per week pick up, per month, no cart provided 17.59$ 17.59$
Recycling Fee, per month/container 1.99$ 1.99$
Special Pickup:
Move Ins, Special Tree Trimmings, oversize 16.79$ 16.79$
materials, & similar circumstances; minimum
Class 1B:12.05$ 12.05$
Once a week residential pick-up in selected
areas. (Contractor will provide a 96 gallon
cart at no charge); per month
Class II: Mobile Home Parks 9.61$ 9.61$
Mobile Home Parks (2 or more mobile homes)
(based on number in park on the 15th day of the month),
per unit/monthly
Class III: Apartments 9.61$ 9.61$
per unit/monthly
Class IV: Motels 4.24$ 4.24$
per unit/monthly
2 Commercial
Class V: 15.25$ 15.25$
Offices, barber shops and
Professional services, per month
Class VI:26.30$ 26.30$
Light retail, wholesale, commercial
or industrial, 2000 to 4000 square feet
and excluding large grocery stores, etc., per month
Class VII: 38.20$ 38.20$
Medium retail, wholesale
commercial or industrial (2000 to 4000
square feet and exclude large grocery store, etc.), per month
2 Cart, 1 pickup per week 39.43$ 39.43$
Public Works - Streets
Garbage Collection Fees
40
City of Schertz
Schedule of Fees
2015-16 2016-17Garbage Collection Fees
Class VIII:
Heavy Volume retail wholesale, commercial, or industrial
(placement determined by a time and cost study of
refuse generation and collection. The categories in
this class usually require hand loading from rooms or
pens and would not apply when commercial containers
are used.)
A. Two weekly pickups of 1.5 cubic yard containers,
excluding large grocery, furniture or department
stores, per month 67.87$ 67.87$
B. Two weekly pickups of 3 cu. Yard containers,
excluding large grocery, furniture or department stores,
etc., per month 135.73$ 135.73$
C. Three weekly pickups of 3 cu. Yard containers,
excluding large grocery, furniture or department stores,
etc., per month 212.09$ 212.09$
D. Four weekly pickups of 4 cu. Yard containers,
including large grocery, furniture or department stores,
etc., per month 254.47$ 254.47$
E. Five weekly pickups of 4 cu. Yard containers,
including large grocery, furniture or department stores,
etc., per month 339.31$ 339.31$
F. Six weekly pickups of 4 cu. Yard containers,
including large grocery, furniture or department stores,
etc., per month 424.20$ 424.20$
G. Customer requiring more than four (4) cu.
Yds each pickup would be charged per cu.
Yds. Collected., per yard 4.70$ 4.70$
41
City of Schertz
Schedule of Fees
2015-16 2016-17Garbage Collection Fees
3. Commercial Containers.
CONTRACTOR will provide commercial containers
to those customers who desire to use them in lieu
of garbage cans. The use of such CONTRACTOR
provided containers is required by this contract.
Rates for containers and pickup will be based
on the following table:
Container Size:Frequency of Pickup
2015-16/2016-17 1 2 3 4 5 6 6
2 cu. Yard 57.73$ 98.30$ 118.74$ 135.74$ 152.71$ 169.66$ 169.66$
3 cu. Yard 69.58$ 125.52$ 173.07$ 198.47$ 223.96$ 249.39$ 249.39$
4 cu. Yard 86.48$ 149.34$ 203.58$ 245.99$ 288.44$ 330.85$ 330.85$
6 cu. Yard 122.20$ 203.58$ 279.96$ 356.33$ 432.60$ 508.97$ 508.97$
8 cu. Yard 144.23$ 262.97$ 364.73$ 466.56$ 569.08$ 670.17$ 670.17$
10 cu. Yard 166.24$ 305.35$ 432.60$ 542.94$ 653.18$ 763.44$ 763.44$
42
City of Schertz
Schedule of Fees
2015-16 2016-17Garbage Collection Fees
4. Roll-Off Rates Per Pull Open Top Containers - Dry Material
20 cu. Yard 313.85$ 313.85$
30 cu. Yard 373.22$ 373.22$
40 cu. Yard 432.60$ 432.60$
Roll-off Rental (no pulls within billing cycle)129.78$ 129.78$
per container per month
5. Wet Material Rates on Compactor containers
or open top containers with wet material must be
negotiated with customers at the time they are
needed. This type of waste must be hauled to a
Type I landfill which generally has a higher
disposal rate attached to it.
Roll-off Container Delivery Charge per container 37.82$ 37.82$
Roll-off Relocation or Trip Charge per container 37.82$ 37.82$
2 cu. Yard compactor, per month (2 services per week)223.61$ 223.61$
Extra pick ups (2 yard compactor), each 84.78$ 84.78$
4 cu. Yard compactor, per month (2 services per week)460.66$ 460.66$
30 cu yard Compactor, per pull 568.36$ 568.36$
40 cu yard Compactor, per pull 675.25$ 675.25$
30 cu yard Open-top (Recycle), per pull 211.95$ 211.95$
Front-Load container extra pick-up charges
2 cu yard 28.84$ 28.84$
3 cu yard 36.05$ 36.05$
4 cu yard 43.27$ 43.27$
6 cu yard 50.48$ 50.48$
8 cu yard 57.69$ 57.69$
10 cu yard 64.89$ 64.89$
OVER WEIGHT CHARGE 28.93$ 28.93$
Collection and Disposal of Municipal Wastes
To address non standard requests, the solid waste contractor can negotiate a fee with
the customer requesting the service. The City will collect 15% of the negotiated fee per
the franchise agreement.
43
City of Schertz
Schedule of Fees
Sewer Rates - CCMA/GBRA Customers 2015-16 2016-17
Residential Rates (Single Family)
Base Rate-per month 9.22$ 11.16$
Per 1,000 gal Charge, Per Month
City line Maintenance fee plus Franchise fee 0.36$ 0.44$
User Charge based on 100% of avg consumption mo.3.15$ 3.35$
User avg. based on Nov, Dec, and Jan, min. 500 gals.
Per 1,000 gal charge Total- 12,000 gallons or less 3.51$ 3.79$
greater than 12,000 gallons 6.95$ 8.34$
Business and Multi-family Dwelling Units:
Base Rate per month 11.69$ 14.03$
The base rate shall be assessed in terms of connection equivalents
which shall be as follows: the customer's previous 12 month water
consumption as determined at the annual re-rating in February
divided by 365, with the results of such division then
divided by 245 gallons. The figure arrived at by the second
division shall be the customer's "connection equivalent". Each
business shall be assessed a base rate.
Per 1,000 gal Charge, Per Month
Line Maintenance-Commercial/Industrial users plus Franchise fee 0.45$ 0.53$
User Charge-based on 100% of water consumed 3.15$ 3.35$
Per 1,000 gal charge Total- 12,000 gallons or less 3.60$ 3.88$
greater than 12,000 gallons 7.02$ 8.42$
Public Schools
Base Rate per month
Base Rate-each public school shall be assessed a 11.69$ 14.03$
base rate per connection equivalent determined as
in Business and Multi-family dwelling units above. (per month)
Per 1,000 gal Charge, Per Month
Line Maintenance-Commercial/Industrial users 0.45$ 0.53$
User Charge-based on 100% of all water consumed 3.15$ 3.35$
Per 1,000 gal charge Total- 12,000 gallons or less 3.60$ 3.88$
greater than 12,000 gallons 7.02$ 8.42$
For Information Purposes Only:
Cibolo Creek Municipal Authority (CCMA), Per 1,000 gallons 3.15$ 3.35$
includes 5% franchise fee
44
City of Schertz
Schedule of Fees
Sewer Rates - SARA Customers 2015-16 2016-17
Residential Rates (Single Family)
Base Rate-per month 12.97$ 12.97$
Per 1,000 gal Charge, Per Month
User Charge based on 100% of avg consumption mo.4.98$ 4.98$
User avg. based on Nov, Dec, and Jan, min. 500 gals.
All Other Customers
Per 1,000 gal Charge, Per Month
User Charge-based on 100% of water consumed 7.79$ 7.79$
45
City of Schertz
Schedule of Fees
2015-16 2016-17
Meter Size Meter Type
5/8"SIMPLE 1.0 2,934$ 2,934$
3/4"SIMPLE 1.5 4,401$ 4,401$
1"SIMPLE 2.5 7,335$ 7,335$
1.5"SIMPLE 5.0 14,670$ 14,670$
2"SIMPLE 8.0 23,472$ 23,472$
2"COMPOUND 8.0 23,472$ 23,472$
2"TURBINE 10.0 29,340$ 29,340$
3"COMPOUND 16.0 46,944$ 46,944$
3"TURBINE 24.0 70,416$ 70,416$
4"COMPOUND 25.0 73,350$ 73,350$
4"TURBINE 42.0 123,228$ 123,228$
6"COMPOUND 50.0 146,700$ 146,700$
6"TURBINE 92.0 269,928$ 269,928$
8"COMPOUND 80.0 234,720$ 234,720$
9"TURBINE 160.0 469,440$ 469,440$
10"COMPOUND 115.0 337,410$ 337,410$
10"TURBINE 250.0 733,500$ 733,500$
12"TURBINE 330.0 968,220$ 968,220$
*Collection Impact Fee Per Living Unit Equivalent (LUE)1,668$ 1,668$
*Sewer based on LUE: LUE = 245 gallons per day
These are only City of Schertz impact fees.
Other Utility Impact Fees
*Treatment Impact Fee Per LUE:1,800.00$ 1,800.00$
Schertz Seguin Local Government Corporation (SSLGC)
Example by meter size: 5/8" Simple 1,306.00$ 1,306.00$
LUEs
Water
Water Impact Fees
SEWER COLLECTION IMPACT FEE
46
City of Schertz
Schedule of Fees
2015-16 2016-17
Permit Fees - If tie into manhole or 25.00$ 25.00$
street cut
Fire Line Type Nos. 1 and 2 - (non-metered), in City
4-inch service line connection or smaller 175.00$ 175.00$
6 inch 235.00$ 235.00$
8 inch 290.00$ 290.00$
10 inch 340.00$ 340.00$
12 inch 405.00$ 405.00$
Fire Line - Outside City
4-inch service line connection or smaller 225.00$ 225.00$
6 inch 305.00$ 305.00$
8 inch 375.00$ 375.00$
10 inch 440.00$ 440.00$
12 inch 525.00$ 525.00$
Meter Size
5/8" X 3/4"265.00$ 275.00$
3/4" X 3/4"295.00$ 302.00$
1" X 1"367.00$ 385.00$
1.5" X 1/5"611.00$ 646.00$
2" X 2"769.00$ 1,822.00$
*2" turbine Cost + Labor Cost + Labor
*3" Comp Cost + Labor Cost + Labor
*3" turbine Cost + Labor Cost + Labor
*4" Comp Cost + Labor Cost + Labor
*4" turbine Cost + Labor Cost + Labor
*2" Comp Cost + Labor Cost + Labor
Public Works
Meter Installation Fees - Inside the City
47
City of Schertz
Schedule of Fees
2015-16 2016-17Public Works
Meter Installation Fees - Outside the City
Meter Size
5/8" X 3/4"275.00$ 285.00$
3/4" X 3/4"305.00$ 312.00$
1" X 1"377.00$ 395.00$
1.5" X 1/5"621.00$ 656.00$
2" X 2"779.00$ 1,832.00$
*2" turbine Cost + Labor Cost + Labor
*3" Comp Cost + Labor Cost + Labor
*3" turbine Cost + Labor Cost + Labor
*4" Comp Cost + Labor Cost + Labor
*4" turbine Cost + Labor Cost + Labor
*2" Comp Cost + Labor Cost + Labor
Fire Hydrant Meter for Construction
Deposit (refundable)200.00$ 200.00$
Service Charge 50.00$ 50.00$
Wholesale Water Distribution Rate
Base Rate, per month
3 Inch Compound Meter 315.28$ 315.28$
3 Inch Turbine Meter 472.92$ 472.92$
4 Inch Compound Meter 492.63$ 492.63$
4 Inch Turbine Meter 827.62$ 827.62$
6 Inch Compound Meter 985.26$ 985.26$
6 Inch Turbine Meter 1,812.88$ 1,812.88$
8 Inch Compound Meter 1,576.80$ 1,576.80$
8 Inch Turbine Meter 3,153.60$ 3,153.60$
10 Inch Compound Meter 2,266.65$ 2,266.65$
10 Inch Turbine Meter 4,927.50$ 4,927.50$
12 Inch Turbine Meter 6,504.30$ 6,504.30$
Available by agreement to distributors with a self-maintained
water distribution service, Military Bases, and for temporary
use until reuse water is made available in a particular area.
48
City of Schertz
Schedule of Fees
Public Works - Water Rates
GALLONS SOLD BY METER SIZE (RESIDENTIAL AND SMALL COMMERCIAL)
METER BLOCK CURRENT NEW CURRENT NEW CURRENT NEW CURRENT NEW
GALLONS BLOCK RATE BLOCK RATE RATE 1000 RATE 1000 BLOCK RATE BLOCK RATE RATE 1000 RATE 1000
5/8 IN 0 20.89$ 23.19$ 2.58$ 2.86$ 25.30$ 28.09$ 5.16$ 5.73$
CODE 1 6,000 36.37$ 40.35$ 2.62$ 2.91$ 56.26$ 62.47$ 5.23$ 5.80$
9,000 44.23$ 49.08$ 2.84$ 3.15$ 71.95$ 79.87$ 5.69$ 6.32$
12,000 52.75$ 58.53$ 3.06$ 3.40$ 89.02$ 98.83$ 6.13$ 6.80$
15,000 61.93$ 68.73$ 3.24$ 3.60$ 107.41$ 119.23$ 6.49$ 7.20$
18,000 71.65$ 79.53$ 4.08$ 4.53$ 126.88$ 140.83$ 8.16$ 9.06$
30,000 120.61$ 133.89$ 4.64$ 5.15$ 224.80$ 249.55$ 9.29$ 10.31$
45,000 190.21$ 211.14$ 4.94$ 5.48$ 364.15$ 404.20$ 9.88$ 10.97$
60,000 264.31$ 293.34$ 5.12$ 5.68$ 512.35$ 568.75$ 10.23$ 11.35$
75,000+341.11$ 378.54$ 5.23$ 5.80$ 665.80$ 739.00$ 10.45$ 11.60$
3/4 IN 0 31.33$ 34.78$ 2.58$ 2.86$ 37.95$ 42.12$ 5.16$ 5.73$
CODE 2 6,000 46.81$ 51.94$ 2.62$ 2.91$ 68.91$ 76.50$ 5.23$ 5.80$
9,000 54.67$ 60.67$ 2.84$ 3.15$ 84.60$ 93.90$ 5.69$ 6.32$
12,000 63.19$ 70.12$ 3.06$ 3.40$ 101.67$ 112.86$ 6.13$ 6.80$
15,000 72.37$ 80.32$ 3.24$ 3.60$ 120.06$ 133.26$ 6.49$ 7.20$
18,000 82.09$ 91.12$ 4.08$ 4.53$ 139.53$ 154.86$ 8.16$ 9.06$
30,000 131.05$ 145.48$ 4.64$ 5.15$ 237.45$ 263.58$ 9.29$ 10.31$
45,000 200.65$ 222.73$ 4.94$ 5.48$ 376.80$ 418.23$ 9.88$ 10.97$
60,000 274.75$ 304.93$ 5.12$ 5.68$ 525.00$ 582.78$ 10.23$ 11.35$
75,000+351.55$ 390.13$ 5.23$ 5.80$ 678.45$ 753.03$ 10.45$ 11.60$
1.0 IN 0 52.22$ 57.96$ 2.58$ 2.86$ 63.25$ 70.21$ 5.16$ 5.73$
CODE 3 6,000 67.70$ 75.12$ 2.62$ 2.91$ 94.21$ 104.59$ 5.23$ 5.80$
9,000 75.56$ 83.85$ 2.84$ 3.15$ 109.90$ 121.99$ 5.69$ 6.32$
12,000 84.08$ 93.30$ 3.06$ 3.40$ 126.97$ 140.95$ 6.13$ 6.80$
15,000 93.26$ 103.50$ 3.24$ 3.60$ 145.36$ 161.35$ 6.49$ 7.20$
18,000 102.98$ 114.30$ 4.08$ 4.53$ 164.83$ 182.95$ 8.16$ 9.06$
30,000 151.94$ 168.66$ 4.64$ 5.15$ 262.75$ 291.67$ 9.29$ 10.31$
45,000 221.54$ 245.91$ 4.94$ 5.48$ 402.10$ 446.32$ 9.88$ 10.97$
60,000 295.64$ 328.11$ 5.12$ 5.68$ 550.30$ 610.87$ 10.23$ 11.35$
75,000+372.44$ 413.31$ 5.23$ 5.80$ 703.75$ 781.12$ 10.45$ 11.60$
2016-17
INSIDE CITY OUTSIDE CITY
49
City of Schertz
Schedule of Fees
Public Works - Water Rates
GALLONS SOLD BY METER SIZE (RESIDENTIAL AND SMALL COMMERCIAL)
METER BLOCK CURRENT NEW CURRENT NEW CURRENT NEW CURRENT NEW
GALLONS BLOCK RATE BLOCK RATE RATE 1000 RATE 1000 BLOCK RATE BLOCK RATE RATE 1000 RATE 1000
2016-17
INSIDE CITY OUTSIDE CITY
1 1/2 IN 0 104.44$ 115.93$ 2.58$ 2.86$ 126.49$ 140.40$ 5.16$ 5.73$
CODE 4 15,000 143.14$ 158.83$ 2.62$ 2.91$ 203.89$ 226.35$ 5.23$ 5.80$
30,000 182.44$ 202.48$ 2.84$ 3.15$ 282.34$ 313.35$ 5.69$ 6.32$
45,000 225.04$ 249.73$ 3.06$ 3.40$ 367.69$ 408.15$ 6.13$ 6.80$
60,000 270.94$ 300.73$ 3.24$ 3.60$ 459.64$ 510.15$ 6.49$ 7.20$
75,000 319.54$ 354.73$ 4.08$ 4.53$ 556.99$ 618.15$ 8.16$ 9.06$
100,000 421.54$ 467.98$ 4.64$ 5.15$ 760.99$ 844.65$ 9.29$ 10.31$
125,000 537.54$ 596.73$ 4.94$ 5.48$ 993.24$ 1,102.40$ 9.88$ 10.97$
150,000 661.04$ 733.73$ 5.12$ 5.68$ 1,240.24$ 1,376.65$ 10.23$ 11.35$
175,000+789.04$ 875.73$ 5.23$ 5.80$ 1,495.99$ 1,660.40$ 10.45$ 11.60$
2 IN 0 167.10$ 185.48$ 2.58$ 2.86$ 202.39$ 224.65$ 5.16$ 5.73$
SIMPLE 24,000 229.02$ 254.12$ 2.62$ 2.91$ 326.23$ 362.17$ 5.23$ 5.80$
COMPOUND 48,000 291.90$ 323.96$ 2.84$ 3.15$ 451.75$ 501.37$ 5.69$ 6.32$
CODE 5 72,000 360.06$ 399.56$ 3.06$ 3.40$ 588.31$ 653.05$ 6.13$ 6.80$
96,000 433.50$ 481.16$ 3.24$ 3.60$ 735.43$ 816.25$ 6.49$ 7.20$
120,000 511.26$ 567.56$ 4.08$ 4.53$ 891.19$ 989.05$ 8.16$ 9.06$
160000 674.46$ 748.76$ 4.64$ 5.15$ 1,217.59$ 1,351.45$ 9.29$ 10.31$
200,000 860.06$ 954.76$ 4.94$ 5.48$ 1,589.19$ 1,763.85$ 9.88$ 10.97$
240,000 1,057.66$ 1,173.96$ 5.12$ 5.68$ 1,984.39$ 2,202.65$ 10.23$ 11.35$
280,000+1,262.46$ 1,401.16$ 5.23$ 5.80$ 2,393.59$ 2,656.65$ 10.45$ 11.60$
2IN 0 208.87$ 231.85$ 2.58$ 2.86$ 252.99$ 280.82$ 5.16$ 5.73$
TURBINE 30,000 286.27$ 317.65$ 2.62$ 2.91$ 407.79$ 452.72$ 5.23$ 5.80$
CODE 6 60,000 364.87$ 404.95$ 2.84$ 3.15$ 564.69$ 626.72$ 5.69$ 6.32$
90,000 450.07$ 499.45$ 3.06$ 3.40$ 735.39$ 816.32$ 6.13$ 6.80$
120,000 541.87$ 601.45$ 3.24$ 3.60$ 919.29$ 1,020.32$ 6.49$ 7.20$
150,000 639.07$ 709.45$ 4.08$ 4.53$ 1,113.99$ 1,236.32$ 8.16$ 9.06$
200,000 843.07$ 935.95$ 4.64$ 5.15$ 1,521.99$ 1,689.32$ 9.29$ 10.31$
250,000 1,075.07$ 1,193.45$ 4.94$ 5.48$ 1,986.49$ 2,204.82$ 9.88$ 10.97$
300,000 1,322.07$ 1,467.45$ 5.12$ 5.68$ 2,480.49$ 2,753.32$ 10.23$ 11.35$
350,000+1,578.07$ 1,751.45$ 5.23$ 5.80$ 2,991.99$ 3,320.82$ 10.45$ 11.60$
50
City of Schertz
Schedule of Fees
Public Works - Water Rates
GALLONS SOLD BY METER SIZE (RESIDENTIAL AND SMALL COMMERCIAL)
METER BLOCK CURRENT NEW CURRENT NEW CURRENT NEW CURRENT NEW
GALLONS BLOCK RATE BLOCK RATE RATE 1000 RATE 1000 BLOCK RATE BLOCK RATE RATE 1000 RATE 1000
2016-17
INSIDE CITY OUTSIDE CITY
3 IN 0 334.20$ 370.96$ 2.58$ 2.86$ 404.78$ 449.31$ 5.16$ 5.73$
COMPOUND 48,000 458.04$ 508.24$ 2.62$ 2.91$ 652.46$ 724.35$ 5.23$ 5.80$
CODE 7 96,000 583.80$ 647.92$ 2.84$ 3.15$ 903.50$ 1,002.75$ 5.69$ 6.32$
144,000 720.12$ 799.12$ 3.06$ 3.40$ 1,176.62$ 1,306.11$ 6.13$ 6.80$
192,000 867.00$ 962.32$ 3.24$ 3.60$ 1,470.86$ 1,632.51$ 6.49$ 7.20$
240,000 1,022.52$ 1,135.12$ 4.08$ 4.53$ 1,782.38$ 1,978.11$ 8.16$ 9.06$
320,000 1,348.92$ 1,497.52$ 4.64$ 5.15$ 2,435.18$ 2,702.91$ 9.29$ 10.31$
400,000 1,720.12$ 1,909.52$ 4.94$ 5.48$ 3,178.38$ 3,527.71$ 9.88$ 10.97$
480,000 2,115.32$ 2,347.92$ 5.12$ 5.68$ 3,968.78$ 4,405.31$ 10.23$ 11.35$
560,000+2,524.92$ 2,802.32$ 5.23$ 5.80$ 4,787.18$ 5,313.31$ 10.45$ 11.60$
3 IN 0 501.30$ 556.44$ 2.58$ 2.86$ 607.17$ 673.96$ 5.16$ 5.73$
TURBINE 72,000 687.06$ 762.36$ 2.62$ 2.91$ 978.69$ 1,086.52$ 5.23$ 5.80$
CODE 8 144,000 875.70$ 971.88$ 2.84$ 3.15$ 1,355.25$ 1,504.12$ 5.69$ 6.32$
216,000 1,080.18$ 1,198.68$ 3.06$ 3.40$ 1,764.93$ 1,959.16$ 6.13$ 6.80$
288,000 1,300.50$ 1,443.48$ 3.24$ 3.60$ 2,206.29$ 2,448.76$ 6.49$ 7.20$
408,000 1,689.30$ 1,875.48$ 4.08$ 4.53$ 2,985.09$ 3,312.76$ 8.16$ 9.06$
528,000 2,178.90$ 2,419.08$ 4.64$ 5.15$ 3,964.29$ 4,399.96$ 9.29$ 10.31$
648,000 2,735.70$ 3,037.08$ 4.94$ 5.48$ 5,079.09$ 5,637.16$ 9.88$ 10.97$
768,000 3,328.50$ 3,694.68$ 5.12$ 5.68$ 6,264.69$ 6,953.56$ 10.23$ 11.35$
888,000+3,942.90$ 4,376.28$ 5.23$ 5.80$ 7,492.29$ 8,315.56$ 10.45$ 11.60$
4 IN 0 522.19$ 579.63$ 2.58$ 2.86$ 632.47$ 702.04$ 5.16$ 5.73$
COMPOUND 75,000 715.69$ 794.13$ 2.62$ 2.91$ 1,019.47$ 1,131.79$ 5.23$ 5.80$
CODE 9 150,000 912.19$ 1,012.38$ 2.84$ 3.15$ 1,411.72$ 1,566.79$ 5.69$ 6.32$
225,000 1,125.19$ 1,248.63$ 3.06$ 3.40$ 1,838.47$ 2,040.79$ 6.13$ 6.80$
300,000 1,354.69$ 1,503.63$ 3.24$ 3.60$ 2,298.22$ 2,550.79$ 6.49$ 7.20$
425,000 1,759.69$ 1,953.63$ 4.08$ 4.53$ 3,109.47$ 3,450.79$ 8.16$ 9.06$
550,000 2,269.69$ 2,519.88$ 4.64$ 5.15$ 4,129.47$ 4,583.29$ 9.29$ 10.31$
675,000 2,849.69$ 3,163.63$ 4.94$ 5.48$ 5,290.72$ 5,872.04$ 9.88$ 10.97$
800,000 3,467.19$ 3,848.63$ 5.12$ 5.68$ 6,525.72$ 7,243.29$ 10.23$ 11.35$
925,000+4,107.19$ 4,558.63$ 5.23$ 5.80$ 7,804.47$ 8,662.04$ 10.45$ 11.60$
51
City of Schertz
Schedule of Fees
Public Works - Water Rates
GALLONS SOLD BY METER SIZE (RESIDENTIAL AND SMALL COMMERCIAL)
METER BLOCK CURRENT NEW CURRENT NEW CURRENT NEW CURRENT NEW
GALLONS BLOCK RATE BLOCK RATE RATE 1000 RATE 1000 BLOCK RATE BLOCK RATE RATE 1000 RATE 1000
2016-17
INSIDE CITY OUTSIDE CITY
4 IN 0 877.28$ 973.78$ 2.58$ 2.86$ 1,062.54$ 1,179.42$ 5.16$ 5.73$
TURBINE 126,000 1,202.36$ 1,334.14$ 2.62$ 2.91$ 1,712.70$ 1,901.40$ 5.23$ 5.80$
CODE 10 252,000 1,532.48$ 1,700.80$ 2.84$ 3.15$ 2,371.68$ 2,632.20$ 5.69$ 6.32$
378,000 1,890.32$ 2,097.70$ 3.06$ 3.40$ 3,088.62$ 3,428.52$ 6.13$ 6.80$
504,000 2,275.88$ 2,526.10$ 3.24$ 3.60$ 3,861.00$ 4,285.32$ 6.49$ 7.20$
630,000 2,684.12$ 2,979.70$ 4.08$ 4.53$ 4,678.74$ 5,192.52$ 8.16$ 9.06$
840,000 3,540.92$ 3,931.00$ 4.64$ 5.15$ 6,392.34$ 7,095.12$ 9.29$ 10.31$
1,050,000 4,515.32$ 5,012.50$ 4.94$ 5.48$ 8,343.24$ 9,260.22$ 9.88$ 10.97$
1,260,000 5,552.72$ 6,163.30$ 5.12$ 5.68$ 10,418.04$ 11,563.92$ 10.23$ 11.35$
1,470,000+6,627.92$ 7,356.10$ 5.23$ 5.80$ 12,566.34$ 13,947.42$ 10.45$ 11.60$
6 IN 0 1,044.38$ 1,159.26$ 2.58$ 2.86$ 1,264.94$ 1,404.08$ 5.16$ 5.73$
COMPOUND 150,000 1,431.38$ 1,588.26$ 2.62$ 2.91$ 2,038.94$ 2,263.58$ 5.23$ 5.80$
CODE 11 300,000 1,824.38$ 2,024.76$ 2.84$ 3.15$ 2,823.44$ 3,133.58$ 5.69$ 6.32$
450,000 2,250.38$ 2,497.26$ 3.06$ 3.40$ 3,676.94$ 4,081.58$ 6.13$ 6.80$
600,000 2,709.38$ 3,007.26$ 3.24$ 3.60$ 4,596.44$ 5,101.58$ 6.49$ 7.20$
750,000 3,195.38$ 3,547.26$ 4.08$ 4.53$ 5,569.94$ 6,181.58$ 8.16$ 9.06$
1,000,000 4,215.38$ 4,679.76$ 4.64$ 5.15$ 7,609.94$ 8,446.58$ 9.29$ 10.31$
1,250,000 5,375.38$ 5,967.26$ 4.94$ 5.48$ 9,932.44$ 11,024.08$ 9.88$ 10.97$
1,500,000 6,610.38$ 7,337.26$ 5.12$ 5.68$ 12,402.44$ 13,766.58$ 10.23$ 11.35$
1,750,000+7,890.38$ 8,757.26$ 5.23$ 5.80$ 14,959.94$ 16,604.08$ 10.45$ 11.60$
6 IN 0 1,921.65$ 2,133.03$ 2.58$ 2.86$ 2,327.48$ 2,583.51$ 5.16$ 5.73$
TURBINE 276,000 2,633.73$ 2,922.39$ 2.62$ 2.91$ 3,751.64$ 4,164.99$ 5.23$ 5.80$
CODE 12 552,000 3,356.85$ 3,725.55$ 2.84$ 3.15$ 5,195.12$ 5,765.79$ 5.69$ 6.32$
828,000 4,140.69$ 4,594.95$ 3.06$ 3.40$ 6,765.56$ 7,510.11$ 6.13$ 6.80$
1,104,000 4,985.25$ 5,533.35$ 3.24$ 3.60$ 8,457.44$ 9,386.91$ 6.49$ 7.20$
1,380,000 5,879.49$ 6,526.95$ 4.08$ 4.53$ 10,248.68$ 11,374.11$ 8.16$ 9.06$
1,840,000 7,756.29$ 8,610.75$ 4.64$ 5.15$ 14,002.28$ 15,541.71$ 9.29$ 10.31$
2,300,000 9,890.69$ 10,979.75$ 4.94$ 5.48$ 18,275.68$ 20,284.31$ 9.88$ 10.97$
2,760,000 12,163.09$ 13,500.55$ 5.12$ 5.68$ 22,820.48$ 25,330.51$ 10.23$ 11.35$
3,220,000+14,518.29$ 16,113.35$ 5.23$ 5.80$ 27,526.28$ 30,551.51$ 10.45$ 11.60$
52
City of Schertz
Schedule of Fees
Public Works - Water Rates
GALLONS SOLD BY METER SIZE (RESIDENTIAL AND SMALL COMMERCIAL)
METER BLOCK CURRENT NEW CURRENT NEW CURRENT NEW CURRENT NEW
GALLONS BLOCK RATE BLOCK RATE RATE 1000 RATE 1000 BLOCK RATE BLOCK RATE RATE 1000 RATE 1000
2016-17
INSIDE CITY OUTSIDE CITY
8 IN 0 1,687.96$ 1,873.64$ 2.58$ 2.86$ 2,044.23$ 2,269.09$ 5.16$ 5.73$
COMPOUND 240,000 2,307.16$ 2,560.04$ 2.62$ 2.91$ 3,282.63$ 3,644.29$ 5.23$ 5.80$
CODE 13 480,000 2,935.96$ 3,258.44$ 2.84$ 3.15$ 4,537.83$ 5,036.29$ 5.69$ 6.32$
720,000 3,617.56$ 4,014.44$ 3.06$ 3.40$ 5,903.43$ 6,553.09$ 6.13$ 6.80$
960,000 4,351.96$ 4,830.44$ 3.24$ 3.60$ 7,374.63$ 8,185.09$ 6.49$ 7.20$
1,200,000 5,129.56$ 5,694.44$ 4.08$ 4.53$ 8,932.23$ 9,913.09$ 8.16$ 9.06$
1,600,000 6,761.56$ 7,506.44$ 4.64$ 5.15$ 12,196.23$ 13,537.09$ 9.29$ 10.31$
2,000,000 8,617.56$ 9,566.44$ 4.94$ 5.48$ 15,912.23$ 17,661.09$ 9.88$ 10.97$
2,400,000 10,593.56$ 11,758.44$ 5.12$ 5.68$ 19,864.23$ 22,049.09$ 10.23$ 11.35$
2,800,000+12,641.56$ 14,030.44$ 5.23$ 5.80$ 23,956.23$ 26,589.09$ 10.45$ 11.60$
8 IN 0 3,375.92$ 3,747.27$ 2.58$ 2.86$ 4,088.44$ 4,538.17$ 5.16$ 5.73$
TURBINE 480,000 4,614.32$ 5,120.07$ 2.62$ 2.91$ 6,565.24$ 7,288.57$ 5.23$ 5.80$
CODE 14 960,000 5,871.92$ 6,516.87$ 2.84$ 3.15$ 9,075.64$ 10,072.57$ 5.69$ 6.32$
1,440,000 7,235.12$ 8,028.87$ 3.06$ 3.40$ 11,806.84$ 13,106.17$ 6.13$ 6.80$
1,920,000 8,703.92$ 9,660.87$ 3.24$ 3.60$ 14,749.24$ 16,370.17$ 6.49$ 7.20$
2,400,000 10,259.12$ 11,388.87$ 4.08$ 4.53$ 17,864.44$ 19,826.17$ 8.16$ 9.06$
3,200,000 13,523.12$ 15,012.87$ 4.64$ 5.15$ 24,392.44$ 27,074.17$ 9.29$ 10.31$
4,000,000 17,235.12$ 19,132.87$ 4.94$ 5.48$ 31,824.44$ 35,322.17$ 9.88$ 10.97$
4,800,000 21,187.12$ 23,516.87$ 5.12$ 5.68$ 39,728.44$ 44,098.17$ 10.23$ 11.35$
5,600,000+27,331.12$ 30,332.87$ 5.23$ 5.80$ 52,004.44$ 57,718.17$ 10.45$ 11.60$
10 IN 0 2,426.44$ 2,693.35$ 2.58$ 2.86$ 2,938.57$ 3,261.81$ 5.16$ 5.73$
COMPOUND 345,000 3,316.54$ 3,680.05$ 2.62$ 2.91$ 4,718.77$ 5,238.66$ 5.23$ 5.80$
CODE 15 690,000 4,220.44$ 4,684.00$ 2.84$ 3.15$ 6,523.12$ 7,239.66$ 5.69$ 6.32$
1,035,000 5,200.24$ 5,770.75$ 3.06$ 3.40$ 8,486.17$ 9,420.06$ 6.13$ 6.80$
1,380,000 6,255.94$ 6,943.75$ 3.24$ 3.60$ 10,601.02$ 11,766.06$ 6.49$ 7.20$
1,725,000 7,373.74$ 8,185.75$ 4.08$ 4.53$ 12,840.07$ 14,250.06$ 8.16$ 9.06$
2,300,000 9,719.74$ 10,790.50$ 4.64$ 5.15$ 17,532.07$ 19,459.56$ 9.29$ 10.31$
2,875,000 12,387.74$ 13,751.75$ 4.94$ 5.48$ 22,873.82$ 25,387.81$ 9.88$ 10.97$
3,450,000 15,228.24$ 16,902.75$ 5.12$ 5.68$ 28,554.82$ 31,695.56$ 10.23$ 11.35$
4,025,000+18,172.24$ 20,168.75$ 5.23$ 5.80$ 34,437.07$ 38,221.81$ 10.45$ 11.60$
53
City of Schertz
Schedule of Fees
Public Works - Water Rates
GALLONS SOLD BY METER SIZE (RESIDENTIAL AND SMALL COMMERCIAL)
METER BLOCK CURRENT NEW CURRENT NEW CURRENT NEW CURRENT NEW
GALLONS BLOCK RATE BLOCK RATE RATE 1000 RATE 1000 BLOCK RATE BLOCK RATE RATE 1000 RATE 1000
2016-17
INSIDE CITY OUTSIDE CITY
10 IN 0 5,274.86$ 5,855.10$ 2.58$ 2.86$ 6,099.15$ 6,770.05$ 5.16$ 5.73$
TURBINE 750,000 7,209.86$ 8,000.10$ 2.62$ 2.91$ 9,969.15$ 11,067.55$ 5.23$ 5.80$
CODE 16 1,500,000 9,174.86$ 10,182.60$ 2.84$ 3.15$ 13,891.65$ 15,417.55$ 5.69$ 6.32$
2,250,000 11,304.86$ 12,545.10$ 3.06$ 3.40$ 18,159.15$ 20,157.55$ 6.13$ 6.80$
3,000,000 13,599.86$ 15,095.10$ 3.24$ 3.60$ 22,756.65$ 25,257.55$ 6.49$ 7.20$
3,750,000 16,029.86$ 17,795.10$ 4.08$ 4.53$ 27,624.15$ 30,657.55$ 8.16$ 9.06$
5,000,000 21,129.86$ 23,457.60$ 4.64$ 5.15$ 37,824.15$ 41,982.55$ 9.29$ 10.31$
6,250,000 26,929.86$ 29,895.10$ 4.94$ 5.48$ 49,436.65$ 54,870.05$ 9.88$ 10.97$
7,500,000 33,104.86$ 36,745.10$ 5.12$ 5.68$ 61,786.65$ 68,582.55$ 10.23$ 11.35$
8,750,000+39,504.86$ 43,845.10$ 5.23$ 5.80$ 74,574.15$ 82,770.05$ 10.45$ 11.60$
12 IN 0 6,962.83$ 7,728.74$ 2.58$ 2.86$ 8,432.40$ 9,359.97$ 5.16$ 5.73$
TURBINE 990,000 9,517.03$ 10,560.14$ 2.62$ 2.91$ 13,540.80$ 15,032.67$ 5.23$ 5.80$
CODE 17 1,980,000 12,110.83$ 13,441.04$ 2.84$ 3.15$ 18,718.50$ 20,774.67$ 5.69$ 6.32$
2,970,000 14,922.43$ 16,559.54$ 3.06$ 3.40$ 24,351.60$ 27,031.47$ 6.13$ 6.80$
3,960,000 17,951.83$ 19,925.54$ 3.24$ 3.60$ 30,420.30$ 33,763.47$ 6.49$ 7.20$
4,950,000 21,159.43$ 23,489.54$ 4.08$ 4.53$ 36,845.40$ 40,891.47$ 8.16$ 9.06$
6,600,000 27,891.43$ 30,964.04$ 4.64$ 5.15$ 50,309.40$ 55,840.47$ 9.29$ 10.31$
8,250,000 35,547.43$ 39,461.54$ 4.94$ 5.48$ 65,637.90$ 72,851.97$ 9.88$ 10.97$
9,900,000 43,698.43$ 48,503.54$ 5.12$ 5.68$ 81,939.90$ 90,952.47$ 10.23$ 11.35$
11,550,000+52,146.43$ 57,875.54$ 5.23$ 5.80$ 98,819.40$ 109,679.97$ 10.45$ 11.60$
CURRENT
RATE 1000 RATE 1000
FH METER 99.26 110.18 7.63 8.47
Cibolo Wholesale Water Rate 3.27 3.27
54
City of Schertz
Schedule of Fees
Drought Contingency Surcharges 2015-16 2016-17
For the first 1,000 gallons over allocation*2.00$ 2.00$
For the second 1,000 gallons over allocation*3.00$ 3.00$
For the third 1,000 gallons over allocation*4.00$ 4.00$
For each additional 1,000 gallons over allocation*5.00$ 5.00$
Drought Contingency Violation Fines, up to 200.00$ 200.00$
*Refer to the Conservation Ordinance for all allocations
55
Agenda No. 3
CITY COUNCIL MEMORANDUM
City Council Meeting: August 2, 2016
Department: Finance
Subject: Ordinance No. 16-T-26 authorizing an
adjustment to the FY 2015-2016 Budget,
Final Reading
BACKGROUND
Per policy any budget adjustments between departments over $50,000 must go before council for
approval.
Fire Department – To authorize the advance hiring of 3 firefighters for station 3 and to cover
projected overtime for the remainder of Fiscal Year 2015-2016. The additional firefighters were
proposed in a ramp up program where we hire these personnel early in order to train them to be
ready to man the station once it opens. With the award of the design contract and to get a few
more months of training in, staff proposes to hire these individuals now instead of proposing
these hires to take effect October 1st, 2016 with the implementation of the new budget. Also, due
to an increase in injuries seen in the Fire Department this year, the overtime budget is projected
to go over by year end. These adjustments are proposed to come from the turnover savings of
vacant Purchasing Manager and the previous Executive Director of Services position.
Building Maintenance – Currently this budget is expected to be over by the year end due to many
A/C failures. The funds currently spent on repairing and replacing A/C units has prevented staff
from pursuing planning projects including the Library’s wood siding power wash and seal and
noise panels at the Civic Center. Due to a conservative approach while we are in an adjustment
period for the new legal fees, funds will be moved from legal to cover the building maintenance
budget.
Fleet – The fleet department is also expected to be over budget by year end due to an increase in
repairs to city equipment and vehicles. Emergency Services vehicle maintenance and repair has
been a priority this year and has used up the available budget. The proposed adjustment will also
be covered by savings in the legal services budget.
Senior Center – The senior center expenses are expected to be over budget by year end. Our meal
contract services were going to come at no cost to the City since the provider as to be receiving a
grant. Due to circumstances on the provider’s end they weren’t able to provide the meals at no
cost and this budget adjustment is to cover the cost of meals through the end of the fiscal year.
This proposed adjustment will also be covered by the legal services budget.
Oil Water Separator – The oil water separator is an in the ground mechanism used to prevent
pollution when we wash vehicles in the Emergency Services yard. It was not designed to bear the
weight of the new fire engines and needs to be redesigned. It is now off limits for fire and EMS
emergency vehicles to drive over limiting the maneuverability of these vehicles trying to enter or
exit the complex to take a call. The budget for this will be transferred from the tax abatements
City Council Memorandum
Page 2
account and the EMS computer equipment account where we have identified areas where the
budget was available and placed in a project account.
Streets – To authorize the funding for the Interlocal agreement for street improvements at
Borgfeld and Dietz Road in conjunction with the City of Cibolo and Schertz-Cibolo-Universal
City Independent School District. The City of Schertz’ portion is $67,000 and will be funded
from within the Street Department from the under budget electric utility and vehicle fuel and the
remaining street maintenance materials. Also to be funded is $15,000 for yellow turn signals at 3
intersections on Schertz Parkway. These funds will be transferred from savings in the land line
telephone account located in IT.
City Council approved this on first reading at their meeting of July 26, 2016.
FISCAL IMPACT
No impact. All adjustments have been identified from existing budgets resulting in no overall
change in the General Fund approved amount.
RECOMMENDATION
Staff recommends that the City Council approve the final reading of Ordinance No. 16-T-21,
approving the budget adjustment to the General Fund.
ATTACHMENT
Ordinance No. 16-T-21
Exhibit A
ORDINANCE NO. 16-T-21
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING A BUDGET ADJUSTMENT TO THE
GENERAL FUND; REPEALING ALL ORDINANCES OR PARTS OF
ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, pursuant to Ordinance 15-T-30, the City of Schertz (the “City”) adopted the
budget for the City for the fiscal year 2015-2016 (the “Budget), which provides funding for the
City’s operations throughout the 2015-2016 fiscal year; and
WHEREAS, the City needs to adjust the Budget to transfer $437,721 from the City
Manager’s Office, the Purchasing & Asset Management Division, Legal Services, Non-
Departmental, Information Technology, and Emergency Medical Services (EMS) to the Fire
Department, Building Maintenance, Fleet Services, the Senior Center, Streets, and the transfer to
the Capital Projects Fund; and
WHEREAS, City staff recommends that the City Council of the City adjust the Budget
and approve the transfer of funds; and
WHEREAS, the City Council of the City has determined that it is in the best interests of
the City to adjust the Budget and approve the transfer of funds from Facilities Maintenance to the
new division of Building Maintenance, as more fully set forth in this Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SCHERTZ, TEXAS:
Section 1. The City shall adjust the Budget and shall transfer $437,721 from the City
Manager’s Office, the Purchasing & Asset Management Division, Legal Services, Non-
Departmental, Information Technology, and EMS to the Fire Department, Building Maintenance,
Fleet Services, the Senior Center, Streets, and the transfer to the Capital Projects Fund where the
breakdown of which is described in the attached “Exhibit A”.
Section 2. The recitals contained in the preamble hereof are hereby found to be true, and
such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part
of the judgment and findings of the Council.
Section 3. All ordinances and codes, or parts thereof, which are in conflict or
inconsistent with any provision of this Ordinance are hereby repealed to the extent of such
conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters
resolved herein.
Section 4. This Ordinance shall be construed and enforced in accordance with the laws
of the State of Texas and the United States of America.
Section 5. If any provision of this Ordinance or the application thereof to any person or
circumstance shall be held to be invalid, the remainder of this Ordinance and the application of
such provision to other persons and circumstances shall nevertheless be valid, and the City
hereby declares that this Ordinance would have been enacted without such invalid provision.
Section 6. It is officially found, determined, and declared that the meeting at which this
Ordinance is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Ordinance, was
given, all as required by Chapter 551, as amended, Texas Government Code.
Section 7. This Ordinance shall be effective upon the date of final adoption hereof and
any publication required by law.
PASSED ON FIRST READING, this 26th day of July 2016.
PASSED, APPROVED and ADOPTED ON SECOND READING, the ___day of August
2016.
CITY OF SCHERTZ, TEXAS
Michael R. Carpenter, Mayor
ATTEST:
Brenda Dennis, City Secretary
(CITY SEAL)
"Exhibit A"
BUDGET TRANSFER
FROM:
101-151-511110 Regular 23,911$
101-872-511110 Regular 56,211$
101-155-541200 Legal Services 155,599$
101-167-537450 Tax Reimbursements/Abatements 60,000$
203-280-571300 Computers & Peripherals 60,000$
101-853-533300 Telephone/Land Line 15,000$
101-359-533200 Electric Utility Services 27,000$
101-359-533500 Vehicle Fuel 20,000$
101-359-551600 Street Maintenance Materials 20,000$
Total 437,721$
TO:
101-257-511110 Regular 23,911$
101-257-511120 Overtime 56,211$
101-878-551100 Building Maintenance 80,357$
101-877-551000 Outside Fleet Repair 26,395$
101-901-537700 Senior Citizens Program 48,847$
101-167-548000 Transfer Out 60,000$
203-280-548000 Transfer Out 60,000$
101-359-571800 Equipment Under $5,000 15,000$
101-359-541310 Contractual Services 67,000$
Total 437,721$
50077367.2
Agenda No. 4
CITY COUNCIL MEMORANDUM
City Council Meeting: August 2, 2016
Department: Info Tech
Subject: Resolution No. 16-R-61 – A
Resolution by the City of Schertz
authoring expenditures with Verizon,
a DIR vendor, totaling no more than
$113,100.00 for Mobile device
services, Air Cards for Public Safety
fleet, Laptop connect, iPads and
MiFi’s.
BACKGROUND
The City of Schertz has been continuously working to move our City and Public Safety fleets
into a more reliable, faster service provider due to the City’s large wireless demand. AT&T
notified the City that the tunnel to the City of San Antonio would no longer be a viable service.
The City looked to Verizon services to expand to our mobile fleet. The City desires to continue
to purchase services from Verizon Wireless, pursuant to the terms and conditions of the State of
Texas Department of Information Resources (DIR) Agreement. So as we move services from
AT&T, the AT&T monthly expense will go down while the Verizon expense would increase.
This will not require any additional funding to the City budget.
GOAL
To obtain authorization from the City Council to renew the Verizon Wireless DIR Agreement
and expand our wireless services to our entire City and Public Safety fleet.
COMMUNITY BENEFIT
Verizon has continued to provide the City with excellent wireless and customer service and this
agreement will allow the City to maintain the high level of service that we provide to the
Community.
SUMMARY OF RECOMMENDED ACTION
Staff recommends that Council authorize staff to continue to utilize Verizon Wireless for all of
our wireless needs in an amount not to exceed $113,100.
FISCAL IMPACT
50077367.2
Funds (not to exceed the amount of $113,100.00) for Mobile device services, Air Cards for
Public Safety Fleet, Laptop connect, iPads and MiFi’s. The aforementioned amount is a
budgeted item in the annual IT budget, broken down as follows:
$52,500.00 Cellular phone services
$50,000.00 Mobile Services for in-vehicle devices
$10,600.00 Data services for mobile devices
ATTACHMENTS
Verizon DIR Agreement
Resolution 16-R-61
RESOLUTION NO. 16-R-61
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING EXPENDITURES WITH VERIZON
WIRELESS TOTALING NO MORE THAN $113,100.00 FOR MOBILE
DEVICE SERVICES, AIR CARDS FOR PUBLIC SAFETY FLEET,
LAPTOP CONNECT, IPADS AND MIFI’S AND OTHER MATTERS IN
CONNECTION THEREWITH
WHEREAS, the City of Schertz (the “City”) has an ongoing need for wireless service
and products, and the City desires to purchase these services from Verizon Wireless pursuant to
the terms and conditions of the State of Texas Department of Information Resources (DIR)
Agreement; and
WHEREAS, Subchapters D and F of the Chapter 271 of the Local Government Code
authorizes cities to participate in cooperatives with the state or local governments for the purpose
of procuring good and services; and
WHEREAS, the City Council authorizes City Staff to request additional services by
Verizon Wireless in an amount not to exceed $113,100.00.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
THAT:
Section 1. The City Council hereby authorizes expenditures with Verizon Wireless
not to exceed $113,100.00 for the remainder of Fiscal Year 2015-2016.
Section 2. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 4. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application
of such provision to other persons and circumstances shall nevertheless be valid, and the City
Council hereby declares that this Resolution would have been enacted without such invalid
provision.
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, Texas Government Code, as amended.
- 2 -
Section 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
PASSED AND ADOPTED, this 2nd day of August, 2016
CITY OF SCHERTZ, TEXAS
Michael R. Carpenter, Mayor
ATTEST:
Brenda Dennis, City Secretary
(CITY SEAL)
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Agenda No. 5
CITY COUNCIL MEMORANDUM
City Council Meeting: August 2, 2016
Department: Finance
Subject: CONSIDERATION OF BIDS RELATING TO
THE SALE OF OBLIGATIONS DESIGNATED
AS “CITY OF SCHERTZ, TEXAS
COMBINATION TAX AND LIMITED
PLEDGE REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2016A”,
CONSIDERATION AND APPROVAL OF
FINANCIAL ADVISOR’S
RECOMMENDATION CONCERNING THIS
MATTER; AND OTHER MATTERS IN
CONNECTION THEREWITH
BACKGROUND:
Bids were received at 11AM CDT today (August 2, 2016) for the City’s Combination Tax and
Limited Pledge Revenue Certificates of Obligation, Series 2016A (the “Obligations”). The
City’s financial advisor, SAMCO Capital Markets, will discuss the bid process and bid results
before the Council in open meeting.
FISCAL IMPACT
The fiscal impact of the sale of the Obligations will be discussed in Agenda Item No. 4.
RECOMMENDATION
This is not an action item and the City’s Financial Advisor will make a recommendation
pertaining to the bids in the meeting. Recommended motion:
A MOTION BY TRUSTEE ______________ AND SECONDED BY TRUSTEE
_____________ THAT THE CITY COUNCIL ACCEPT THE FINANCIAL ADVISOR’S
RECOMMENDATION CONCERNING THE ACCEPTANCE OF BIDS RELATING TO
THE SALE OF OBLIGATIONS DESIGNATED AS “CITY OF SCHERTZ, TEXAS
COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2016A”
ATTACHMENT(S)
None
Agenda No. 6
CITY COUNCIL MEMORANDUM
City Council Meeting: August 2, 2016
Department: Finance
Subject: ORDINANCE NO. 16-B-22 - AN ORDINANCE
AUTHORIZING THE ISSUANCE OF “CITY
OF SCHERTZ, TEXAS COMBINATION TAX
AND LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION, SERIES
2016A”; PROVIDING FOR THE PAYMENT
OF SAID CERTIFICATES BY THE LEVY OF
AN AD VALOREM TAX UPON ALL
TAXABLE PROPERTY WITHIN THE CITY
AND FURTHER SECURING SAID
CERTIFICATES BY A LIEN ON AND
PLEDGE OF THE PLEDGED REVENUES OF
THE SYSTEM; PROVIDING THE TERMS
AND CONDITIONS OF SAID CERTIFICATES
AND RESOLVING OTHER MATTERS
INCIDENT AND RELATING TO THE
ISSUANCE, PAYMENT, SECURITY, SALE,
AND DELIVERY OF SAID CERTIFICATES,
INCLUDING THE APPROVAL AND
DISTRIBUTION OF AN OFFICIAL
STATEMENT PERTAINING THERETO;
AUTHORIZING THE EXECUTION OF A
PAYING AGENT/REGISTRAR AGREEMENT
AND AN OFFICIAL BID FORM;
COMPLYING WITH THE REQUIREMENTS
OF THE LETTER OF REPRESENTATIONS
PREVIOUSLY EXECUTED WITH THE
DEPOSITORY TRUST COMPANY;
AUTHORIZING THE EXECUTION OF ANY
NECESSARY ENGAGEMENT
AGREEMENTS WITH THE CITY’S
FINANCIAL ADVISORS AND/OR BOND
COUNSEL; AND PROVIDING AN
EFFECTIVE DATE (First & Final)
BACKGROUND:
The Certificate Ordinance before the Council tonight is to authorize the sale of approximately
$1,600,000 Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series
2016A. The proceeds will be used for making renovations to various buildings at the City’s
municipal complex, the construction of Fire Station No. 2, replacing windows at the City’s
Recreational Center and making street improvements. The Bonds will be amortized over 20
years and will be callable by the City in 10 years as is customary for a financing of this size.
FISCAL IMPACT
The authorization of the Certificate Ordinance should not result in a tax rate increase. The
proceeds will be delivered to the City on September 1st. The Certificates are being issued at the
same time as the General Obligation Bonds as well as Taxable Certificates of Obligation, to be
discussed in greater detail under separate agenda items. When the Taxable CO and GO Bonds
are approved, along with this Tax-Exempt CO, it is estimated that there will be little to no impact
on the I&S Tax Rate
RECOMMENDATION
Staff recommends approving the Certificate Ordinance on first and final reading selling the
securities to the initial purchaser. Recommended motion:
A MOTION BY COUNCILMEMBER ______________ AND SECONDED BY
COUNCILMEMBER __________ THAT THE CITY COUNCIL ADOPT AN
ORDINANCE AUTHORIZING THE ISSUANCE OF “CITY OF SCHERTZ, TEXAS
COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2016A”
ATTACHMENT(S)
Certificate Ordinance.
27316930.2
DRAFT 7/18/16
AN ORDINANCE AUTHORIZING THE ISSUANCE OF “CITY OF
SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE
REVENUE CERTIFICATES OF OBLIGATION, SERIES 2016A”;
PROVIDING FOR THE PAYMENT OF SAID CERTIFICATES BY THE
LEVY OF AN AD VALOREM TAX UPON ALL TAXABLE PROPERTY
WITHIN THE CITY AND FURTHER SECURING SAID CERTIFICATES
BY A LIEN ON AND PLEDGE OF THE PLEDGED REVENUES OF THE
SYSTEM; PROVIDING THE TERMS AND CONDITIONS OF SAID
CERTIFICATES AND RESOLVING OTHER MATTERS INCIDENT AND
RELATING TO THE ISSUANCE, PAYMENT, SECURITY, SALE, AND
DELIVERY OF SAID CERTIFICATES, INCLUDING THE APPROVAL
AND DISTRIBUTION OF AN OFFICIAL STATEMENT PERTAINING
THERETO; AUTHORIZING THE EXECUTION OF A PAYING
AGENT/REGISTRAR AGREEMENT AND AN OFFICIAL BID FORM;
COMPLYING WITH THE REQUIREMENTS OF THE LETTER OF
REPRESENTATIONS PREVIOUSLY EXECUTED WITH THE
DEPOSITORY TRUST COMPANY; AUTHORIZING THE EXECUTION
OF ANY NECESSARY ENGAGEMENT AGREEMENTS WITH THE
CITY’S FINANCIAL ADVISORS AND/OR BOND COUNSEL; AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the City Council of the City of Schertz, Texas (the City) has caused notice
to be given of its intention to issue certificates of obligation in the maximum principal amount of
$3,000,000 for the purpose of paying contractual obligations of the City to be incurred for
making permanent public improvements and for other public purposes, to-wit: (1) designing,
constructing, renovating, improving, and equipping a community swimming pool and aquatic
facility of competition quality, (2) designing, constructing, renovating, improving, and equipping
various facilities located in the City’s Municipal Complex, (3) designing, constructing,
renovating, improving, and equipping Fire Station #2, (4) acquiring replacement windows for the
City’s Recreational Center, (5) constructing street and bridge improvements (including utilities
repair, replacement, and relocation), curb, gutters, and sidewalk improvements, including
drainage and landscaping incidental thereto, (6) the purchase of materials, supplies, equipment,
machinery, landscaping, land, and rights-of-way for authorized needs and purposes relating to
the aforementioned capital improvements, and (7) the payment of professional services related to
the design, construction, project management, and financing of the aforementioned projects.
This notice has been duly published in a newspaper hereby found and determined to be of
general circulation in the City, once a week for two (2) consecutive weeks, the date of the first
publication of such notice being not less than thirty (30) days prior to the tentative date stated
therein for the passage of the ordinance authorizing the issuance of such certificates of
obligation; and
WHEREAS, no petition protesting the issuance of the certificates of obligation described
in this notice, signed by at least 5% of the qualified electors of the City, has been presented to or
27316930.2 -2-
filed with the City Secretary prior to the date tentatively set in such notice for the passage of this
ordinance; and
WHEREAS, the City Council hereby finds and determines that the issuance of the
certificates of obligation, under the terms herein specified, is in the best interests of the City and
its residents; and
WHEREAS, the City Council hereby finds and determines that certificates of obligation
in the principal amount of $___________ described in such notice should be issued and sold at
this time; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
THAT:
SECTION 1. Authorization - Designation - Principal Amount - Purpose. The
certificates of obligation of the City shall be and are hereby authorized to be issued in the
aggregate principal amount of _____________________________________ MILLION AND
NO/100 DOLLARS ($___________), to be designated and bear the title of “CITY OF
SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION, SERIES 2016A” (the Certificates), for the purpose of
paying contractual obligations of the City to be incurred for making permanent public
improvements and for other public purposes, to-wit: (1) designing, constructing, renovating,
improving, and equipping a community swimming pool and aquatic facility of competition
quality, (2) designing, constructing, renovating, improving, and equipping various facilities
located in the City’s Municipal Complex, (3) designing, constructing, renovating, improving, and
equipping Fire Station #2, (4) acquiring replacement windows for the City’s Recreational Center,
(5) constructing street and bridge improvements (including utilities repair, replacement, and
relocation), curb, gutters, and sidewalk improvements, including drainage and landscaping
incidental thereto, (6) the purchase of materials, supplies, equipment, machinery, landscaping,
land, and rights-of-way for authorized needs and purposes relating to the aforementioned capital
improvements, and (7) the payment of professional services related to the design, construction,
project management, and financing of the aforementioned projects, pursuant to the authority
conferred by and in conformity with the laws of the State of Texas, particularly the Certificate of
Obligation Act of 1971, as amended, Texas Local Government Code Section 271.041 through
Section 271.064, Chapter 1502, as amended, Texas Government Code, and the City’s Home
Rule Charter.
SECTION 2. Fully Registered Obligations - Authorized Denominations - Stated
Maturities - Interest Rates – Certificate Date. The Certificates are issuable in fully registered
form only; shall be dated August 1, 2016 (the Certificate Date) and shall be issued in
denominations of $5,000 or any integral multiple (within a Stated Maturity) thereof, and the
Certificates shall become due and payable on February 1 in each of the years and in principal
amounts (the Stated Maturities) and bear interest on the unpaid principal amounts from the
Certificate Date, or from the most recent Interest Payment Date (hereinafter defined) to which
interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the
per annum rates, while Outstanding, in accordance with the following schedule:
27316930.2 -3-
Years of
Stated Maturity
Principal
Amounts ($)
Interest
Rates (%)
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
The Certificates shall bear interest on the unpaid principal amounts from the Certificate
Date, or from the most recent Interest Payment Date (hereinafter defined) to which interest has
been paid or duly provided for, to Stated Maturity or prior redemption, while Outstanding, at the
rates per annum shown in the above schedule (calculated on the basis of a 360-day year of
twelve 30-day months). Interest on the Certificates shall be payable on February 1 and August 1
in each year (each, an Interest Payment Date), commencing February 1, 2017.
SECTION 3. Payment of Certificates - Paying Agent/Registrar. The principal of,
premium, if any, and interest on the Certificates, due and payable by reason of Stated Maturity,
redemption, or otherwise, shall be payable in any coin or currency of the United States of
America which at the time of payment is legal tender for the payment of public and private debts,
and such payment of principal of, premium if any, and interest on the Certificates shall be
without exchange or collection charges to the Holder (hereinafter defined) of the Certificates.
The selection and appointment of BOKF, NA, Austin, Texas (the
Paying Agent/Registrar) to serve as the initial Paying Agent/Registrar, for the Certificates is
hereby approved and confirmed, and the City agrees and covenants to cause to be kept and
maintained at the corporate trust office of the Paying Agent/Registrar books and records (the
Security Register) for the registration, payment and transfer of the Certificates, all as provided
27316930.2 -4-
herein, in accordance with the terms and provisions of a Paying Agent/Registrar Agreement,
attached, in substantially final form, as Exhibit A hereto, and such reasonable rules and
regulations as the Paying Agent/Registrar and City may prescribe. The City covenants to
maintain and provide a Paying Agent/Registrar at all times while the Certificates are
Outstanding, and any successor Paying Agent/Registrar shall be (i) a national or state banking
institution or (ii) an association or a corporation organized and doing business under the laws of
the United States of America or of any state, authorized under such laws to exercise trust powers.
Such Paying Agent/Registrar shall be subject to supervision or examination by federal or state
authority and authorized by law to serve as a Paying Agent/Registrar.
The City reserves the right to appoint a successor Paying Agent/Registrar upon providing
the previous Paying Agent/Registrar with a certified copy of a resolution or ordinance
terminating such agency. Additionally, the City agrees to promptly cause a written notice of this
substitution to be sent to each Holder of the Certificates by United States mail, first-class postage
prepaid, which notice shall also give the address of the new Paying Agent/Registrar.
Principal of, premium, if any, and interest on the Certificates, due and payable by reason
of Stated Maturity, redemption, or otherwise, shall be payable only to the registered owner of the
Certificates appearing on the Security Register (the Holder or Holders) maintained on behalf of
the City by the Paying Agent/Registrar as hereinafter provided (i) on the Record Date
(hereinafter defined) for purposes of payment of interest thereon, (ii) on the date of surrender of
the Certificates for purposes of receiving payment of principal thereof upon redemption of the
Certificates or at the Certificates’ Stated Maturity, and (iii) on any other date for any other
purpose. The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder
as the owner of a Certificate for purposes of receiving payment and all other purposes
whatsoever, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be
affected by notice to the contrary.
Principal of and premium, if any, on the Certificates shall be payable only upon
presentation and surrender of the Certificates to the Paying Agent/Registrar at its corporate trust
office. Interest on the Certificates shall be paid to the Holder whose name appears in the
Security Register at the close of business on the fifteenth day of the month next preceding an
Interest Payment Date for the Certificates (the Record Date) and shall be paid (i) by check sent
on or prior to the appropriate date of payment by United States mail, first-class postage prepaid,
by the Paying Agent/Registrar, to the address of the Holder appearing in the Security Register or
(ii) by such other method, acceptable to the Paying Agent/Registrar, requested in writing by the
Holder at the Holder’s risk and expense.
If the date for the payment of the principal of, premium, if any, or interest on the
Certificates shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions
in the city where the corporate trust office of the Paying Agent/Registrar is located are
authorized by law or executive order to close, then the date for such payment shall be the next
succeeding day which is not such a day. The payment on such date shall have the same force
and effect as if made on the original date any such payment on the Certificates was due.
In the event of a non-payment of interest on a scheduled payment date, and for thirty (30)
days thereafter, a new record date for such interest payment (a Special Record Date) will be
27316930.2 -5-
established by the Paying Agent/Registrar, if and when funds for the payment of such interest
have been received from the City. Notice of the Special Record Date and of the scheduled
payment date of the past due interest (the Special Payment Date - which shall be fifteen (15)
days after the Special Record Date) shall be sent at least five (5) business days prior to the
Special Record Date by United States mail, first-class postage prepaid, to the address of each
Holder of a Certificate appearing on the Security Register at the close of business on the last
business day next preceding the date of mailing of such notice.
SECTION 4. Redemption.
A. The Certificates stated to mature on February 1 20__, February 1, 20__, and
February 1, 20__ are referred to herein as the “Term Certificates”. The Term Certificates are
subject to mandatory sinking fund redemption prior to their stated maturities from money
required to be deposited in the Certificate Fund for such purpose and shall be redeemed in part,
by lot or other customary method, at the principal amount thereof plus accrued interest to the
date of redemption in the following principal amounts on February 1 in each of the years as set
forth below:
Term Certificates
Stated to Mature
on February 1, 20
Term Certificates
Stated to Mature
on February 1, 20
Year
Principal
Amount ($) Year
Principal
Amount ($)
* *
*Payable at Stated Maturity.
Term Certificates
Stated to Mature
on February 1, 20
Year
Principal
Amount ($)
*
*Payable at Stated Maturity.
The principal amount of a Term Certificate required to be redeemed pursuant to the
operation of such mandatory redemption provisions shall be reduced, at the option of the City, by
the principal amount of any Term Certificates of such Stated Maturity which, at least fifty (50)
days prior to the mandatory redemption date (1) shall have been defeased or acquired by the City
27316930.2 -6-
and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and
canceled by the Paying Agent/Registrar at the request of the City, or (3) shall have been
redeemed pursuant to the optional redemption provisions set forth below and not theretofore
credited against a mandatory redemption requirement.
B. Optional Redemption. The Certificates having Stated Maturities on and after
February 1, 2027 shall be subject to redemption prior to Stated Maturity, at the option of the
City, on February 1, 2026, or on any date thereafter, as a whole or in part, in principal amounts
of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and
by lot by the Paying Agent/Registrar), at the redemption price of par plus accrued interest to the
date of redemption.
C. Exercise of Redemption Option. At least forty-five (45) days prior to a date set
for the redemption of Certificates (unless a shorter notification period shall be satisfactory to the
Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of its decision to
exercise the right to redeem Certificates, the principal amount of each Stated Maturity to be
redeemed, and the date set for the redemption thereof. The decision of the City to exercise the
right to redeem Certificates shall be entered in the minutes of the governing body of the City.
D. Selection of Certificates for Redemption. If less than all Outstanding Certificates
of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar
shall select at random and by lot the Certificates to be redeemed, provided that if less than the
entire principal amount of a Certificate is to be redeemed, the Paying Agent/Registrar shall treat
such Certificate then subject to redemption as representing the number of Certificates
Outstanding which is obtained by dividing the principal amount of such Certificate by $5,000.
E. Notice of Redemption. Not less than thirty (30) days prior to a redemption date
for the Certificates, a notice of redemption shall be sent by United States mail, first-class postage
prepaid, in the name of the City and at the City’s expense, by the Paying Agent/Registrar to each
Holder of a Certificate to be redeemed, in whole or in part, at the address of the Holder appearing
on the Security Register at the close of business on the business day next preceding the date of
mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to
have been duly given irrespective of whether received by the Holder.
All notices of redemption shall (i) specify the date of redemption for the Certificates,
(ii) identify the Certificates to be redeemed and, in the case of a portion of the principal amount
to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv)
state that the Certificates, or the portion of the principal amount thereof to be redeemed, shall
become due and payable on the redemption date specified, and the interest thereon, or on the
portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the
redemption date, and (v) specify that payment of the redemption price for the Certificates, or the
principal amount thereof to be redeemed, shall be made at the corporate trust office of the Paying
Agent/Registrar only upon presentation and surrender thereof by the Holder.
If a Certificate is subject by its terms to redemption and has been called for redemption
and notice of redemption thereof has been duly given or waived as herein provided, such
Certificate (or the principal amount thereof to be redeemed) so called for redemption shall
27316930.2 -7-
become due and payable, and if money sufficient for the payment of such Certificates (or of the
principal amount thereof to be redeemed) at the then applicable redemption price is held for the
purpose of such payment by the Paying Agent/Registrar, then on the redemption date designated
in such notice, interest on the Certificates (or the principal amount thereof to be redeemed) called
for redemption shall cease to accrue and such Certificates shall not be deemed to be Outstanding
in accordance with the provisions of this Ordinance. This notice may also be published once in a
financial publication, journal, or reporter of general circulation among securities dealers in the
City of New York, New York (including, but not limited to, The Bond Buyer and The Wall Street
Journal), or in the State of Texas (including, but not limited to, The Texas Bond Reporter).
F. Transfer/Exchange of Certificates. Neither the City nor the Paying
Agent/Registrar shall be required (1) to transfer or exchange any Certificate during a period
beginning forty-five (45) days prior to the date fixed for redemption of the Certificates or (2) to
transfer or exchange any Certificate selected for redemption, provided, however, such limitation
of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance of a
Certificate which is subject to redemption in part.
SECTION 5. Execution - Registration. The Certificates shall be executed on behalf of
the City by its Mayor or Mayor Pro Tem under its seal reproduced or impressed thereon and
attested by its City Secretary. The signature of either of said officers on the Certificates may be
manual or facsimile. Certificates bearing the manual or facsimile signatures of individuals who
were, at the time of the Certificate Date, the proper officers of the City shall bind the City,
notwithstanding that such individuals or either of them shall cease to hold such offices prior to
the delivery of the Certificates to the Purchasers (hereinafter defined), all as authorized and
provided in Chapter 1201, as amended, Texas Government Code.
No Certificate shall be entitled to any right or benefit under this Ordinance, or be valid or
obligatory for any purpose, unless there appears on such Certificate either a certificate of
registration substantially in the form provided in Section 8C, executed by the Comptroller of
Public Accounts of the State of Texas or his duly authorized agent by manual signature, or a
certificate of registration substantially in the form provided in Section 8D, executed by the
Paying Agent/Registrar by manual signature, and either such certificate upon any Certificate
shall be conclusive evidence, and the only evidence, that such Certificate has been duly certified
or registered and delivered.
SECTION 6. Registration - Transfer - Exchange of Certificates - Predecessor
Certificates. The Paying Agent/Registrar shall obtain, record, and maintain in the Security
Register the name and address of every owner of the Certificates, or if appropriate, the nominee
thereof. Any Certificate may, in accordance with its terms and the terms hereof, be transferred
or exchanged for Certificates of other authorized denominations upon the Security Register by
the Holder, in person or by his duly authorized agent, upon surrender of such Certificate to the
Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or
request for exchange duly executed by the Holder or by his duly authorized agent, in form
satisfactory to the Paying Agent/Registrar.
Upon surrender for transfer of any Certificate at the corporate trust office of the Paying
Agent/Registrar, the City shall execute and the Paying Agent/Registrar shall register and deliver,
27316930.2 -8-
in the name of the designated transferee or transferees, one or more new Certificates of
authorized denomination and having the same Stated Maturity and of a like interest rate and
aggregate principal amount as the Certificate or Certificates surrendered for transfer.
At the option of the Holder, Certificates may be exchanged for other Certificates of
authorized denominations and having the same Stated Maturity, bearing the same rate of interest
and of like aggregate principal amount as the Certificates surrendered for exchange upon
surrender of the Certificates to be exchanged at the corporate trust office of the Paying
Agent/Registrar. Whenever any Certificates are so surrendered for exchange, the City shall
execute, and the Paying Agent/Registrar shall register and deliver, the Certificates to the Holder
requesting the exchange.
All Certificates issued upon any transfer or exchange of Certificates shall be delivered at
the corporate trust office of the Paying Agent/Registrar, or be sent by registered mail to the
Holder at his request, risk, and expense, and upon the delivery thereof, the same shall be the
valid and binding obligations of the City, evidencing the same obligation to pay, and entitled to
the same benefits under this Ordinance, as the Certificates surrendered upon such transfer or
exchange.
All transfers or exchanges of Certificates pursuant to this Section shall be made without
expense or service charge to the Holder, except as otherwise herein provided, and except that the
Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange
of any tax or other governmental charges required to be paid with respect to such transfer or
exchange.
Certificates canceled by reason of an exchange or transfer pursuant to the provisions
hereof are hereby defined to be Predecessor Certificates, evidencing all or a portion, as the case
may be, of the same debt evidenced by the new Certificate or Certificates registered and
delivered in the exchange or transfer therefor. Additionally, the term Predecessor Certificates
shall include any Certificate registered and delivered pursuant to Section 25 in lieu of a
mutilated, lost, destroyed, or stolen Certificate which shall be deemed to evidence the same
obligation as the mutilated, lost, destroyed, or stolen Certificate.
SECTION 7. Initial Certificate. The Certificates herein authorized shall be issued
initially either (i) as a single fully registered Certificate in the total principal amount of
$___________ with principal installments to become due and payable as provided in Section 2
and numbered T-1, or (ii) as one (1) fully registered Certificate for each year of Stated Maturity
in the applicable principal amount and denomination and to be numbered consecutively from T-1
and upward (the Initial Certificate) and, in either case, the Initial Certificate shall be registered in
the name of the Purchasers or the designee thereof. The Initial Certificate shall be the
Certificates submitted to the Office of the Attorney General of the State of Texas for approval,
certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas
and delivered to the Purchasers. Any time after the delivery of the Initial Certificate to the
Purchasers, the Paying Agent/Registrar, pursuant to written instructions from the Purchasers or
their designee, shall cancel the Initial Certificate delivered hereunder and exchange therefor
definitive Certificates of authorized denominations, Stated Maturities, principal amounts and
bearing applicable interest rates on the unpaid principal amounts from the Certificate Date, or
27316930.2 -9-
from the most recent Interest Payment Date to which interest has been paid or duly provided for,
to Stated Maturity, and shall be lettered “R” and numbered consecutively from one (1) upward
for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to
and in accordance with such written instructions from the Purchasers, or the designee thereof,
and such other information and documentation as the Paying Agent/Registrar may reasonably
require.
SECTION 8. Forms.
A. Forms Generally. The Certificates, the Registration Certificate of the Comptroller
of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar,
and the form of Assignment to be printed on each of the Certificates shall be substantially in the
forms set forth in this Section with such appropriate insertions, omissions, substitutions, and
other variations as are permitted or required by this Ordinance and may have such letters,
numbers, or other marks of identification (including insurance legends in the event the
Certificates, or any Stated Maturities thereof, are insured, and any reproduction of an opinion of
Bond Counsel (hereinafter referenced)) and identifying numbers and letters of the Committee on
Uniform Securities Identification Procedures of the American Bankers Association) and such
legends and endorsements (including any reproduction of an opinion of counsel) thereon as may,
consistent herewith, be established by the City or determined by the officers executing the
Certificates as evidenced by their execution thereof. Any portion of the text of any Certificate
may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the
Certificate.
The definitive Certificates shall be printed, lithographed, or engraved, produced by any
combination of these methods, or produced in any other similar manner, all as determined by the
officers executing the Certificates as evidenced by their execution thereof, but the Initial
Certificate submitted to the Attorney General of the State of Texas may be typewritten or
photocopied or otherwise reproduced.
[The remainder of this page intentionally left blank.]
27316930.2 -10-
B. Form of Definitive Certificate.
REGISTERED
REGISTERED PRINCIPAL AMOUNT
NO. _________ $_____________
United States of America
State of Texas
Counties of Guadalupe, Comal, and Bexar
CITY OF SCHERTZ, TEXAS
COMBINATION TAX AND LIMITED PLEDGE REVENUE
CERTIFICATE OF OBLIGATION, SERIES 2016A
Certificate Date: Interest Rate: Stated Maturity: CUSIP No.
August 1, 2016
REGISTERED OWNER: _________________________________________________________
PRINCIPAL AMOUNT: _________________________________________________________
The City of Schertz, Texas (the City), a body corporate and municipal corporation in the
Counties of Guadalupe, Comal, and Bexar, State of Texas, for value received, acknowledges
itself indebted to and hereby promises to pay to the order of the Registered Owner specified
above, or the registered assigns thereof, on the Stated Maturity date specified above, the
Principal Amount specified above (or so much thereof as shall not have been paid upon prior
redemption) and to pay interest on the unpaid Principal Amount hereof from the Certificate Date,
or from the most recent Interest Payment Date (hereinafter defined) to which interest has been
paid or duly provided for until such Principal Amount has become due and payment thereof has
been made or duly provided for, to the earlier of redemption or Stated Maturity, while
Outstanding, at the per annum rate of interest specified above computed on the basis of a 360-
day year of twelve 30-day months; such interest being payable on February 1 and August 1 of
each year (each, an Interest Payment Date) commencing February 1, 2017.
Principal and premium, if any, of this Certificate shall be payable to the Registered
Owner hereof (the Holder), upon presentation and surrender, at the corporate trust office of the
Paying Agent/Registrar executing the registration certificate appearing hereon or a successor
thereof. Interest shall be payable to the Holder of this Certificate (or one or more Predecessor
Certificates, as defined in the Ordinance hereinafter referenced) whose name appears on the
Security Register maintained by the Paying Agent/Registrar at the close of business on the
Record Date, which is the fifteenth day of the month next preceding each Interest Payment Date.
All payments of principal of and interest on this Certificate shall be in any coin or currency of
the United States of America which at the time of payment is legal tender for the payment of
public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on
or prior to the appropriate date of payment by United States mail, first-class postage prepaid, to
the Holder hereof at the address appearing in the Security Register or by such other method,
acceptable to the Paying Agent/Registrar, requested by the Holder hereof at the Holder’s risk and
expense.
27316930.2 -11-
This Certificate is one of the series specified in its title issued in the aggregate principal
amount of $_______________ (the Certificates) pursuant to an Ordinance adopted by the
governing body of the City (the Ordinance), for the purpose of paying contractual obligations of
the City to be incurred for making permanent public improvements and for other public
purposes, to-wit: (1) designing, constructing, renovating, improving, and equipping a
community swimming pool and aquatic facility of competition quality, (2) designing,
constructing, renovating, improving, and equipping various facilities located in the City’s
Municipal Complex, (3) designing, constructing, renovating, improving, and equipping Fire
Station #2, (4) acquiring replacement windows for the City’s Recreational Center,
(5) constructing street and bridge improvements (including utilities repair, replacement, and
relocation), curb, gutters, and sidewalk improvements, including drainage and landscaping
incidental thereto, (6) the purchase of materials, supplies, equipment, machinery, landscaping,
land, and rights-of-way for authorized needs and purposes relating to the aforementioned capital
improvements, and (7) the payment of professional services related to the design, construction,
project management, and financing of the aforementioned projects, under and in strict
conformity with the laws of the State of Texas, particularly Chapter 1502, as amended, Texas
Government Code, the Certificate of Obligation Act of 1971, as amended, Texas Local
Government Code, Section 271.041 through 271.064, and the City’s Home Rule Charter.
The Certificates stated to mature on February 1 20__, February 1, 20__, and February 1,
20__ are referred to herein as the “Term Certificates”. The Term Certificates are subject to
mandatory sinking fund redemption prior to their stated maturities from money required to be
deposited in the Certificate Fund for such purpose and shall be redeemed in part, by lot or other
customary method, at the principal amount thereof plus accrued interest to the date of
redemption in the following principal amounts on February 1 in each of the years as set forth
below:
Term Certificates
Stated to Mature
on February 1, 20
Term Certificates
Stated to Mature
on February 1, 20
Year
Principal
Amount ($) Year
Principal
Amount ($)
* *
*Payable at Stated Maturity.
27316930.2 -12-
Term Certificates
Stated to Mature
on February 1, 20
Year
Principal
Amount ($)
*
*Payable at Stated Maturity.
The principal amount of a Term Certificate required to be redeemed pursuant to the
operation of such mandatory redemption provisions shall be reduced, at the option of the City, by
the principal amount of any Term Certificates of such Stated Maturity which, at least fifty (50)
days prior to the mandatory redemption date (1) shall have been defeased or acquired by the City
and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and
canceled by the Paying Agent/Registrar at the request of the City, or (3) shall have been
redeemed pursuant to the optional redemption provisions set forth below and not theretofore
credited against a mandatory redemption requirement.
As provided in the Ordinance, the Certificates having Stated Maturities on and after
February 1, 2027 shall be subject to redemption prior to Stated Maturity, at the option of the
City, on February 1, 2026, or on any date thereafter, as a whole or in part, in principal amounts
of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and
by lot by the Paying Agent/Registrar), at the redemption price of par plus accrued interest to the
date of redemption; provided, however, that at least thirty (30) days prior written notice shall be
sent to the Holder of the Certificates to be redeemed by United States mail, first-class postage
prepaid, and subject to the terms and provisions relating thereto contained in the Ordinance. If
this Certificate is subject to redemption prior to Stated Maturity and is in a denomination in
excess of $5,000, portions of the principal sum hereof in installments of $5,000 or any integral
multiple thereof may be redeemed, and, if less than all of the principal sum hereof is to be
redeemed, there shall be issued, without charge therefor, to the Holder hereof, upon the surrender
of this Certificate to the Paying Agent/Registrar at its corporate trust office, a new Certificate or
Certificates of like Stated Maturity and interest rate in any authorized denominations provided in
the Ordinance for the then unredeemed balance of the principal sum hereof.
If this Certificate (or any portion of the principal sum hereof) shall have been duly called
for redemption and notice of such redemption has been duly given, then upon such redemption
date this Certificate (or the portion of the principal sum hereof to be redeemed) shall become due
and payable, and, if the money for the payment of the redemption price, and the interest accrued
on the principal amount to be redeemed to the date of redemption is held for the purpose of such
payment by the Paying Agent/Registrar, interest shall cease to accrue and be payable hereon
from and after the redemption date on the principal amount hereof to be redeemed. If this
Certificate is called for redemption, in whole or in part, the City or the Paying Agent/Registrar
shall not be required to issue, transfer, or exchange this Certificate within forty-five (45) days of
the date fixed for redemption; provided, however, such limitation of transfer shall not be
27316930.2 -13-
applicable to an exchange by the Holder of the unredeemed balance hereof in the event of its
redemption in part.
The Certificates of this series are payable from the proceeds of an ad valorem tax levied
upon all taxable property within the City, within the limitations prescribed by law, and are
further payable from and secured by a lien on and pledge of the Pledged Revenues (identified
and defined in the Ordinance), being a limited amount of the Net Revenues derived from the
operation of the City’s combined utility system (the System), such lien on and pledge of the
limited amount of Net Revenues being subordinate and inferior to the lien on and pledge of such
Net Revenues securing payment of any Prior Lien Obligations, Junior Lien Obligations, or
Subordinate Lien Obligations hereafter issued by the City. The City has previously authorized
the issuance of the currently outstanding Limited Pledge Obligations (identified and defined in
the Ordinance) that are payable, in part, from and secured by a lien on and pledge of a limited
amount of the Net Revenues of the System in the manner and as described in the ordinances
authorizing the issuance of the currently outstanding Limited Pledge Obligations. In the
Ordinance, the City reserves and retains the right to issue Prior Lien Obligations, Junior Lien
Obligations, Subordinate Lien Obligations, and Additional Limited Pledge Obligations (all as
identified and defined in the Ordinance), while the Certificates are Outstanding, without
limitation as to principal amount but subject to any terms, conditions or restrictions as may be
applicable thereto under law or otherwise.
Reference is hereby made to the Ordinance, a copy of which is on file in the corporate
trust office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by his
acceptance hereof hereby assents, for definitions of terms; the description of and the nature and
extent of the tax levied and the revenues pledged for the payment of the Certificates; the terms
and conditions under which the City may issue Prior Lien Obligations, Junior Lien Obligations,
Subordinate Lien Obligations, and Additional Limited Pledge Obligations; the terms and
conditions relating to the transfer or exchange of the Certificates; the conditions upon which the
Ordinance may be amended or supplemented with or without the consent of the Holder; the
rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and
provisions upon which this Certificate may be redeemed or discharged at or prior to the Stated
Maturity thereof, and deemed to be no longer Outstanding thereunder; and for the other terms
and provisions specified in the Ordinance. Capitalized terms used herein have the same meanings
assigned in the Ordinance.
This Certificate, subject to certain limitations contained in the Ordinance, may be
transferred on the Security Register upon presentation and surrender at the corporate trust office
of the Paying Agent/Registrar, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Paying Agent/Registrar duly executed by the Holder hereof,
or his duly authorized agent, and thereupon one or more new fully registered Certificates of the
same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the
same aggregate principal amount will be issued to the designated transferee or transferees.
The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder
hereof whose name appears on the Security Register (i) on the Record Date as the owner hereof
for purposes of receiving payment of interest hereon, (ii) on the date of surrender of this
Certificate as the owner hereof for purposes of receiving payment of principal hereof at its Stated
27316930.2 -14-
Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner hereof for
all other purposes, and neither the City nor the Paying Agent/Registrar, or any such agent of
either, shall be affected by notice to the contrary. In the event of a non-payment of interest on a
scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest
payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when
funds for the payment of such interest have been received from the City. Notice of the Special
Record Date and of the scheduled payment date of the past due interest (the Special Payment
Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five
(5) business days prior to the Special Record Date by United States mail, first-class postage
prepaid, to the address of each Holder appearing on the Security Register at the close of business
on the last business day next preceding the date of mailing of such notice.
It is hereby certified, covenanted, and represented that all acts, conditions, and things
required to be performed, exist, and be done precedent to the issuance of this Certificate in order
to render the same a legal, valid, and binding obligation of the City have been performed, exist,
and have been done, in regular and due time, form, and manner, as required by the laws of the
State of Texas and the Ordinance, and that issuance of the Certificates does not exceed any
constitutional or statutory limitation; and that due provision has been made for the payment of
the principal of, premium if any, and interest on the Certificates by the levy of a tax and
collection of Pledged Revenues as aforestated. In case any provision in this Certificate or any
application thereof shall be deemed invalid, illegal, or unenforceable, the validity, legality, and
enforceability of the remaining provisions and applications shall not in any way be affected or
impaired thereby. The terms and provisions of this Certificate and the Ordinance shall be
construed in accordance with and shall be governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the City has caused this Certificate to be duly executed under
its official seal.
CITY OF SCHERTZ, TEXAS
By _________________________________
Mayor
ATTEST:
____________________________________
City Secretary
(CITY SEAL)
27316930.2 -15-
C. *Form of Registration Certificate of Comptroller of Public Accounts to Appear on
Initial Certificate Only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER OF
PUBLIC ACCOUNTS
THE STATE OF TEXAS
§
§
§
§
REGISTER NO.
I HEREBY CERTIFY that this Certificate has been examined, certified as to validity and
approved by the Attorney General of the State of Texas, and duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this ____________________
____________________________________
Comptroller of Public Accounts
of the State of Texas
(SEAL)
*NOTE TO PRINTER: Not to appear on printed Certificates.
D. Form of Certificate of Paying Agent/Registrar to Appear on Definitive
Certificates Only.
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Certificate has been duly issued under the provisions of the within-mentioned
Ordinance; the Certificate or Certificates of the above-entitled and designated series originally
delivered having been approved by the Attorney General of the State of Texas and registered by
the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar.
Registered this date:
____________________________________
BOKF, NA, AUSTIN, TEXAS, as Paying
Agent/Registrar
By: _______________________________
Authorized Signature
*NOTE TO PRINTER: Print on Definitive Certificates.
27316930.2 -16-
E. Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto
(Print or typewrite name, address, and zip code of transferee): ____________________________
______________________________________________________________________________
(Social Security or other identifying number): ________________________________________
the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
____________________attorney to transfer the within Certificate on the books kept for
registration thereof, with full power of substitution in the premises.
DATED: ____________________________
________________________________________________
NOTICE: The signature on this assignment must
correspond with the name of the registered owner as it
appears on the face of the within Certificate in every
particular.
Signature guaranteed:
____________________________________
F. The Initial Certificate shall be in the form set forth in paragraph B of this Section,
except that the form of a single fully registered Initial Certificate shall be modified as follows:
(i) immediately under the name of the Certificate the headings “Interest Rate and “Stated
Maturity shall both be completed “as shown below”;
(ii) the first two paragraphs shall read as follows:
Registered Owner: ______________________________________________________________
Principal Amount: ______________________________________________________________
The City of Schertz, Texas (the City), a body corporate and municipal corporation in the
Counties of Guadalupe, Comal, and Bexar, State of Texas, for value received, acknowledges
itself indebted to and hereby promises to pay to the order of the Registered Owner named above,
or the registered assigns thereof, the Principal Amount specified above stated to mature on the
first day of February in each of the years and in principal amounts and bearing interest at per
annum rates in accordance with the following schedule:
27316930.2 -17-
Years of
Stated Maturity
Principal
Amounts ($)
Interest
Rates (%)
(Information to be inserted
from schedule in Section 2 hereof)
(or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the
unpaid Principal Amounts hereof from the Certificate Date specified above, or from the most
recent Interest Payment Date (defined below) to which interest has been paid or duly provided
for until the Principal Amount has become due and payment thereof has been made or duly
provided for, to the earlier of redemption or Stated Maturity, at the per annum rates of interest
specified above, computed on the basis of a 360-day year of twelve 30-day months; such interest
being payable on February 1 and August 1 of each year (each, an Interest Payment Date),
commencing February 1, 2017.
Principal of this Certificate shall be payable to the Registered Owner hereof (the Holder),
upon its presentation and surrender, to Stated Maturity or prior redemption, while Outstanding, at
the corporate trust office of BOKF, NA, Austin, Texas (the Paying Agent/Registrar). Interest
shall be payable to the Holder of this Certificate whose name appears on the Security Register
maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is
the fifteenth day of the month next preceding each Interest Payment Date. All payments of
principal of and interest on this Certificate shall be in any coin or currency of the United States
of America which at the time of payment is legal tender for the payment of public and private
debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the
appropriate date of payment by United States mail, first-class postage prepaid, to the Holder
hereof at the address appearing in the Security Register or by such other method, acceptable to
the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder hereof.
G. Insurance Legend. If bond insurance is obtained by the City or the Purchasers for
the Certificates, the Definitive Certificates and the Initial Certificate shall bear an appropriate
legend as provided by the insurer.
SECTION 9. Definitions. For all purposes of this Ordinance (as defined below), except
as otherwise expressly provided or unless the context otherwise requires: (i) the terms defined in
this Section have the meanings assigned to them in this Section, and certain terms used in
Sections 27 and 44 of this Ordinance have the meanings assigned to them in Sections 27 and 44
of this Ordinance, and all such terms, include the plural as well as the singular; (ii) all references
in this Ordinance to designated “Sections” and other subdivisions are to the designated Sections
and other subdivisions of this Ordinance as originally adopted; and (iii) the words “herein”,
“hereof’, and “hereunder” and other words of similar import refer to this Ordinance as a whole
and not to any particular Section or other subdivision.
A. The term Additional Limited Pledge Obligations shall mean (i) any bonds, notes,
warrants, certificates of obligation or other evidences of indebtedness hereafter issued by the
City payable in part from a limited pledge of and lien on Net Revenues of the System being a
lien on and pledge of Net Revenues that is subordinate and inferior to the lien thereon and pledge
thereof securing the payment of any Prior Lien Obligations, Junior Lien Obligations, or
27316930.2 -18-
Subordinate Lien Obligations hereafter issued by the City, which pledge of revenues is limited
pursuant to Section 1502.052, as amended, Texas Government Code, all as further provided in
Section 20 of this Ordinance, and (ii) any obligations issued to refund the foregoing as
determined by the City Council in accordance with any applicable law.
B. The term Authorized Officials shall mean the Mayor, the Mayor Pro Tem, the City
Manager, the Director of Finance, and/or the City Secretary.
C. The term Certificates shall mean the $____________ “CITY OF SCHERTZ,
TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2016A” authorized by this Ordinance.
D. The term Certificate Fund shall mean the special Fund created and established by
the provisions of Section 10 of this Ordinance.
E. The term City shall mean the City of Schertz, located in Guadalupe, Comal, and
Bexar Counties, Texas and, where appropriate, the City Council of the City.
F. The term Closing Date shall mean the date of physical delivery of the Initial
Certificates in exchange for the payment of the agreed purchase price for the Certificates.
G. The term Collection Date shall mean, when reference is being made to the levy
and collection of annual ad valorem taxes, the date the annual ad valorem taxes levied each year
by the City become delinquent.
H. The term Debt Service Requirements shall mean, as of any particular date of
computation, with respect to any obligations and with respect to any period, the aggregate of the
amounts to be paid or set aside by the City as of such date or in such period for the payment of
the principal of, premium, if any, and interest (to the extent not capitalized) on such obligations;
assuming, in the case of obligations without a fixed numerical rate, that such obligations bear
interest at the maximum rate permitted by the terms thereof and further assuming in the case of
obligations required to be redeemed or prepaid as to principal prior to Stated Maturity, the
principal amounts thereof will be redeemed prior to Stated Maturity in accordance with the
mandatory redemption provisions applicable thereto.
I. The term Depository shall mean an official depository bank of the City.
J. The term Fiscal Year shall mean the annual financial accounting period for the
System now ending on September 30th of each year; provided, however, the City Council may
change such annual financial accounting period to end on another date if such change is found
and determined to be necessary for accounting purposes or is required by applicable law.
K. The term Government Securities, as used herein, shall mean (i) direct noncallable
obligations of the United States, including obligations that are unconditionally guaranteed by, the
United States of America; (ii) noncallable obligations of an agency or instrumentality of the
United States, including obligations that are unconditionally guaranteed or insured by the agency
or instrumentality and that, on the date the governing body of the issuer adopts or approves the
proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a
27316930.2 -19-
nationally recognized investment rating firm not less than “AAA” or its equivalent;
(iii) noncallable obligations of a state or an agency or a county, municipality, or other political
subdivision of a state that have been refunded and that, on the date the governing body of the
issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated
as to investment quality by a nationally recognized investment rating firm not less than “AAA”
or its equivalent, or (iv) any additional securities and obligations hereafter authorized by the laws
of the State of Texas as eligible for use to accomplish the discharge of obligations such as the
Certificates.
L. The term Gross Revenues for any period shall mean all revenue during such
period in respect or on account of the operation or ownership of the System, excluding
refundable meter deposits, restricted gifts, and grants in aid of construction, but including
earnings and income derived from the investment or deposit of money in any special fund or
account (except the Certificate Fund) created and established for the payment or security of the
Certificates.
M. The term Holder or Holders shall mean the registered owner, whose name
appears in the Security Register, for any Certificate.
N. The term Interest Payment Date shall mean the date interest is payable on the
Certificates, being February 1 and August 1 of each year, commencing February 1, 2017, while
any of the Certificates remain Outstanding.
O. The term Junior Lien Obligations shall mean (i) any bonds, notes, warrants,
certificates of obligation or any similar obligations hereafter issued by the City that are payable
wholly or in part from and equally and ratably secured by a lien on and pledge of the Net
Revenues of the System, such pledge being junior and inferior to the lien on and pledge of the
Net Revenues of the System that may be pledged to the payment of any Prior Lien Obligations
hereafter issued by the City, but prior and superior to the lien on and pledge of the Net Revenues
of the System that are or will be pledged to the payment of the currently outstanding Limited
Pledge Obligations, and the Certificates, or any Subordinate Lien Obligations or Additional
Limited Pledge Obligations hereafter issued by the City all as further provided in Section 20 of
this Ordinance and (ii) obligations hereafter issued to refund any of the foregoing that are
payable from and equally and ratably secured by a junior and inferior lien on and pledge of the
Net Revenues as determined by the City Council in accordance with any applicable law.
P. The term Limited Pledge Obligations shall mean (i) the Certificates and the
outstanding and unpaid obligations of the City that are payable, in part, from and secured by a
subordinate and inferior lien on and pledge of a limited amount of the Net Revenues of the
System and designated as follows:
(1) “City of Schertz, Texas Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Series 2007”, dated January 1, 2007, originally issued in the
aggregate principal amount of $9,915,000;
27316930.2 -20-
(2) “City of Schertz, Texas Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Series 2013”, dated September 1, 2013, originally issued in the
aggregate principal amount of $4,965,000; and
(3) “City of Schertz, Texas Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Taxable Series 2016B”, dated August 1, 2016, originally
issued in the aggregate principal amount of $______________;
(ii) obligations hereafter issued to refund any of the foregoing as determined by the City
Council in accordance with any applicable law.
Q. The term Maintenance and Operating Expenses shall mean all current expenses
of operating and maintaining the System not paid from the proceeds of the Certificates, including
(1) the cost of all salaries, labor, materials, repairs, and extensions necessary to render efficient
service, but only if, in the case of repairs and extensions, they are, in the judgment of the City
Council (reasonably and fairly exercised), necessary to maintain operation of the System and
render adequate service to the City and the inhabitants thereof, or are necessary to meet some
physical accident or condition which would otherwise impair obligations payable from Net
Revenues, (2) payments to pension, retirement, health, hospitalization, and other employee
benefit funds for employees of the City engaged in the operation or maintenance of the System,
(3) payments under contracts for the purchase of water supply, treatment of sewage, or other
materials, goods, or services for the System to the extent authorized by law and the provisions of
such contract, (4) payments to auditors, attorneys, and other consultants incurred in complying
with the obligations of the City hereunder, and (5) any legal liability of the City arising out of the
operation, maintenance, or condition of the System, but excluding any allowance for
depreciation, property retirement, depletion, obsolescence, and other items not requiring an
outlay of cash and any interest on the Certificates or other bonds, notes, warrants, or similar
obligations of the City payable from Net Revenues.
R. The term Net Revenues for any period shall mean the Gross Revenues of the
System less the Maintenance and Operating Expenses of the System.
S. The term Ordinance shall mean this ordinance as finally passed and adopted by
the City Council of the City.
T. The term Outstanding when used in this Ordinance with respect to the Certificates
shall mean, as of the date of determination, all Certificates issued and delivered under this
Ordinance, except:
(1) those Certificates canceled by the Paying Agent/Registrar or delivered to
the Paying Agent/Registrar for cancellation;
(2) those Certificates for which payment has been duly provided by the City
in accordance with the provisions of Section 29 of this Ordinance; and
(3) those Certificates that have been mutilated, destroyed, lost, or stolen and
replacement Certificates have been registered and delivered in lieu thereof as provided in
Section 25 of this Ordinance.
27316930.2 -21-
U. The term Pledged Revenues shall mean, while the Certificates remain
Outstanding, an amount of Net Revenues not in excess of $1,000. The Pledged Revenues shall
be deposited, allocated, and expended in accordance with Section 10 of this Ordinance.
V. The term Pledged Revenue Amount shall mean the total amount, not to exceed
$1,000 while the Certificates are Outstanding, of Net Revenues that may be transferred in whole
or in part by the City in any given Fiscal Year (however, any amounts transferred prior to the
final maturity date of the Certificates may not exceed the total amount of $1,000) to the
Certificate Fund.
W. The term Prior Lien Obligations shall mean (i) any bonds, notes, warrants,
certificates of obligation or any similar obligations hereafter issued by the City that are payable
in whole or in part from and equally and ratably secured by a first and prior lien on and pledge of
the Net Revenues of the System, all as further provided in Section 20 of this Ordinance, and
(ii) any obligations hereafter issued to refund the foregoing if issued in a manner so as to be
payable from and equally and ratably secured by a first and prior lien on and pledge of the Net
Revenues of the System as determined by the City Council in accordance with any applicable
law.
X. The term Purchasers shall mean the initial purchaser or purchasers of the
Certificates named in Section 26 of this Ordinance.
Y. The term Stated Maturity shall mean the annual principal payments of the
Certificates payable on February 1 of each year the Certificates are Outstanding as set forth in
Section 2 of this Ordinance.
Z. The term Subordinate Lien Obligations shall mean (i) any bonds, notes, warrants,
certificates of obligation, or any similar obligations hereafter issued by the City that are payable,
in whole or in part, from and equally and ratably secured by a lien on and pledge of the Net
Revenues of the System, such pledge being subordinate and inferior to the lien on and pledge of
the Net Revenues of the System that may be pledged to the payment of any Prior Lien
Obligations or Junior Lien Obligations hereafter issued by the City, but prior and superior to the
lien on and pledge of the limited amount of the Net Revenues securing, in part, the payment of
the currently outstanding Limited Pledge Obligations and the Certificates or any Additional
Limited Pledge Obligations hereafter issued by the City, all as further provided in Section 20 of
this Ordinance and (ii) any obligations hereafter issued to refund any of the foregoing if issued in
a manner so as to be payable from and equally and ratably secured by a subordinate and inferior
lien on and pledge of the Net Revenues as determined by the City Council in accordance with
any applicable law.
AA. The term System shall mean all properties, facilities and plants currently owned,
operated, and maintained by the City for the supply, treatment, and transmission of treated
potable water, for the collection and treatment of wastewater, together will all future extensions,
improvements, replacements and additions thereto, whether situated within or without the limits
of the City and the City expressly reserves the right at its sole discretion to include additional
utility, telecommunications, technology, or similar enterprise services as components of the
System; provided, however, that notwithstanding the foregoing, and to the extent now or
27316930.2 -22-
hereafter authorized or permitted by law, the term System shall not mean to include facilities of
any kind which are declared not to be a part of the System and which are acquired or constructed
by or on behalf of the City with the proceeds from the issuance of Special Facilities Bonds,
which are hereby defined as being special revenue obligations of the City which are not payable
from Net Revenues but which are payable from and equally and ratably secured by other liens on
and pledges of any revenues, sources or payments, not pledged to the payment of the Bonds
Similarly Secured including, but not limited to, special contract revenues or payments received
from any other legal entity in connection with such facilities.
SECTION 10. Certificate Fund – Investments. For the purpose of paying the interest on
and to provide a sinking fund for the payment, redemption, and retirement of the Certificates,
there shall be and is hereby created a special fund to be designated “COMBINATION TAX
AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2016A,
INTEREST AND SINKING FUND” (the Certificate Fund), which fund shall be kept and
maintained at the Depository, and money deposited in the Certificate Fund shall be used for no
other purpose and shall be maintained as provided in Section 27. Authorized Officials of the
City are hereby authorized and directed to make withdrawals from the Certificate Fund sufficient
to pay the purchase price or the amount of principal of, premium, if any, and interest on the
Certificates as the same become due and payable and shall cause to be transferred to the Paying
Agent/Registrar from money on deposit in the Certificate Fund an amount sufficient to pay the
amount of principal and/or interest stated to mature on the Certificates, such transfer of funds to
the Paying Agent/Registrar to be made in such manner as will cause immediately available funds
to be deposited with the Paying Agent/Registrar on or before the business day next preceding
each interest and principal payment date for the Certificates.
The City, at its sole discretion, may deposit the Pledged Revenue Amount to the
Certificate Fund. The Pledged Revenue Amount, if deposited, shall be expended annually to pay
principal of and interest on the Certificates as the same become due and payable. This Pledged
Revenue Amount shall be accounted for and transferred to the Paying Agent/Registrar in
accordance with the provisions of the previous paragraph of this Section.
Pending the transfer of funds to the Paying Agent/Registrar, money deposited in any fund
created and established by this Ordinance may, at the option of the City, be placed in time
deposits, certificates of deposit, guaranteed investment contracts, or similar contractual
agreements, as permitted by the provisions of the Public Funds Investment Act, as amended,
Chapter 2256, Texas Government Code, secured (to the extent not insured by the Federal
Deposit Insurance Corporation) by obligations of the type hereinafter described, or be invested,
as authorized by any law, including investments held in book-entry form, in securities, including,
but not limited to, direct obligations of the United States of America, obligations guaranteed or
insured by the United States of America, which, in the opinion of the Attorney General of the
United States, are backed by its full faith and credit or represent its general obligations, or
invested in indirect obligations of the United States of America, including, but not limited to,
evidences of indebtedness issued, insured or guaranteed by such governmental agencies as the
Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home
Loan Banks, Government National Mortgage Association, Farmers Home Administration,
Federal Home Loan Mortgage Association, or Federal Housing Association; provided that all
such deposits and investments shall be made in such a manner that the money required to be
27316930.2 -23-
expended from such fund will be available at the proper time or times. All interest and income
derived from deposits and investments in any fund established pursuant to the provisions of this
Ordinance shall be credited to, and any losses debited to, such fund. All such investments shall
be sold promptly when necessary to prevent any default in connection with the Certificates.
SECTION 11. Tax Levy. To provide for the payment of the Debt Service Requirements
on the Certificates being (i) the interest on the Certificates and (ii) a sinking fund for their
redemption at Stated Maturity or a sinking fund of 2% (whichever amount shall be the greater),
there shall be and there is hereby levied for the current year and each succeeding year thereafter
while the Certificates or any interest thereon shall remain Outstanding, a sufficient tax, within
the limitations prescribed by law, on each one hundred dollars valuation of taxable property in
the City, adequate to pay such Debt Service Requirements, full allowance being made for
delinquencies and costs of collection; said tax shall be assessed and collected each year and
applied to the payment of the Debt Service Requirements, and the same shall not be diverted to
any other purpose. The taxes so levied and collected shall be paid into the Certificate Fund and
are thereafter pledged to the payment of the Certificates. The City Council hereby declares its
purpose and intent to provide and levy a tax legally and fully sufficient to pay such Debt Service
Requirements, it having been determined that the existing and available taxing authority of the
City for such purpose is adequate to permit a legally sufficient tax in consideration of all other
outstanding indebtedness and other obligations of the City.
The amount of taxes to be provided annually for the payment of the principal of and
interest on the Certificates shall be determined and accomplished in the following manner:
A. Prior to the date the City Council establishes the annual tax rate and passes an
ordinance levying ad valorem taxes each year, the City Council shall determine:
(1) the amount of Debt Service Requirements to become due and payable on
the Certificates between the Collection Date for the taxes then to be levied and the
Collection Date for the taxes to be levied during the next succeeding calendar year;
(2) the amount on deposit in the Certificate Fund after (a) deducting therefrom
the total amount of Debt Service Requirements to become due on Certificates prior to the
Collection Date for the ad valorem taxes to be levied and (b) adding thereto the amount
of the Pledged Revenues, if any, to be appropriated and allocated during such year to pay
such Debt Service Requirements, if any, prior to the Collection Date for the ad valorem
taxes to be levied; and
(3) the amount of Pledged Revenues, if any, to be appropriated and to be set
aside for the payment of the Debt Service Requirements on the Certificates between the
Collection Date for the taxes then to be levied and the Collection Date for the taxes to be
levied during the next succeeding Fiscal Year.
B. The amount of taxes to be levied annually each year to pay the Debt Service
Requirements on the Certificates shall be the amount established in paragraph (1) above less the
sum total of the amounts established in paragraphs (2) and (3), after taking into consideration
delinquencies and costs of collecting such annual taxes.
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SECTION 12. Pledge of Revenues. The City hereby covenants and agrees that, subject
to (i) any prior lien on and pledge of the Net Revenues of the System to the payment and security
of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations hereafter
issued by the City and (ii) the lien on and pledge of a limited amount of the Net Revenues to the
payment and security of the currently outstanding Limited Pledge Obligations, the Pledged
Revenues are hereby irrevocably pledged to the payment of the principal of and interest on the
Certificates and the pledge of Pledged Revenues herein made for the payment of the Certificates
shall constitute a lien on the Pledged Revenues in accordance with the terms and provisions
hereof and be valid and binding without any physical delivery thereof or further act by the City.
SECTION 13. System Fund. The City hereby covenants and agrees that all Gross
Revenues derived from the operation of the System shall be kept separate and apart from all
other funds, accounts and money of the City and shall be deposited as collected into the “CITY
OF SCHERTZ, TEXAS UTILITY SYSTEM FUND” (the System Fund). All money deposited
in the System Fund shall be pledged and appropriated to the extent required for the following
purposes and in the order of priority shown:
• First: to the payment of the reasonable and proper Maintenance and Operating
Expenses of the System required by statute or ordinances authorizing the issuance
of any indebtedness of the City to be a first charge on and claim against the Gross
Revenues of the System;
• Second: To the payment of the amounts that must be deposited in the special
funds and accounts created and established for the payment, security, and benefit
of any Prior Lien Obligations hereafter issued by the City in accordance with the
terms and provisions of any ordinance authorizing their issuance;
• Third: To the payment of the amounts that must be deposited in the special funds
and accounts created and established for the payment, security, and benefit of any
Junior Lien Obligations hereafter issued by the City in accordance with the terms
and provisions of any ordinance authorizing their issuance;
• Fourth: To the payment of the amounts that must be deposited in the special
funds and accounts created and established for the payment, security, and benefit
of any Subordinate Lien Obligations hereafter issued by the City in accordance
with the terms and provisions of any ordinance authorizing their issuance; and
• Fifth: To the payment of the amounts that may be deposited in the special funds
and accounts established for the payment of the currently outstanding Limited
Pledge Obligations, including the Certificates, and any Additional Limited Pledge
Obligations hereafter issued by the City in accordance with the terms and
provisions of any ordinance authorizing their issuance.
Any Net Revenues remaining in the System Fund after satisfying the foregoing
payments, or making adequate and sufficient provision for the payment, security and benefit
thereof, may be appropriated and used for any other City purpose now or hereafter permitted by
law.
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SECTION 14. Deposits to Certificate Fund – Surplus Certificate Proceeds. The City
hereby covenants and agrees to cause to be deposited in the Certificate Fund prior to a principal
and interest payment date for the Certificates, from the Pledged Revenues in the System Fund,
after the deduction of all payments required to be made to the special funds or accounts created
for the payment, security, and benefit of (i) any Prior Lien Obligations, Junior Lien Obligations,
or Subordinate Lien Obligations hereafter issued by the City and (ii) the currently outstanding
Limited Pledge Obligations, any amounts budgeted to be paid therefrom in such Fiscal Year.
Accrued interest received from the Purchasers of the Certificates shall be deposited to the
Certificate Fund and ad valorem taxes levied and collected for the benefit of the Certificates shall
be deposited to the Certificate Fund. In addition, any surplus proceeds, including investment
income therefrom, from the sale of the Certificates not expended for authorized purposes shall be
deposited in the Certificate Fund, and such amounts so deposited shall reduce the sums otherwise
required to be deposited in said fund from ad valorem taxes.
SECTION 15. Security of Funds. All money on deposit in the funds for which this
Ordinance makes provision (except any portion thereof as may be at any time properly invested
as provided herein) 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 money on deposit in such funds shall
be used only for the purposes permitted by this Ordinance.
SECTION 16. Maintenance of System - Insurance. The City covenants and agrees that
while the Certificates remain Outstanding it will maintain and operate the System with all
possible efficiency and maintain casualty and other insurance (including a system of self-
insurance) on the properties of the System and its operations of a kind and in such amounts
customarily carried by municipal corporations in the State of Texas engaged in a similar type of
business and that it will faithfully and punctually perform all duties with reference to the System
required by the laws of the State of Texas. All money received from losses under such insurance
policies, other than public liability policies, are held for the benefit of the holders of the
Certificates until and unless the proceeds are paid out in making good the loss or damage in
respect of which such proceeds are received, either by replacing the property destroyed or
repairing the property damaged, and adequate provision for making good such loss or damage
must be made within ninety (90) days after the date of loss. The payment of premiums for all
insurance policies required under the provisions hereof shall be considered Maintenance and
Operating Expenses. Nothing in this Ordinance shall be construed as requiring the City to
expend any funds which are derived from sources other than the operation of the System but
nothing herein shall be construed as preventing the City from doing so.
SECTION 17. Rates and Charges. The City hereby covenants and agrees with the
Holders of the Certificates that rates and charges for utility services afforded by the System will
be established and maintained to provide Gross Revenues sufficient at all times:
A. to pay, together with any other lawfully available funds, all operating,
maintenance, depreciation, replacement, betterment, and other costs incurred in the maintenance
and operation of the System, including, but not limited to, Maintenance and Operating Expenses;
provided, however, that the City expressly reserves the right to utilize other lawfully available
funds to pay the Maintenance and Operating Expenses;
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B. to produce Net Revenues sufficient, together with any other lawfully available
funds, to pay (i) the interest on and principal of any Prior Lien Obligations hereafter issued by
the City as the same becomes due and payable and the amounts required to be deposited in any
special fund created and established for the payment, security, and benefit thereof; (ii) the
interest on and principal of any Junior Lien Obligations hereafter issued by the City as the same
becomes due and payable and the amounts required to be deposited in any special fund created
and established for the payment, security, and benefit thereof, (iii) the interest on and principal of
any Subordinate Lien Obligations hereafter issued by the City as the same becomes due and
payable and the amounts required to be deposited in any special fund created and established for
the payment, security, and benefit thereof, and (iv) the amounts that may be deposited in the
special funds established for the payment of the currently outstanding Limited Pledge
Obligations, the Certificates, or any Additional Limited Pledge Obligations hereafter issued by
the City; and
C. to pay other legally incurred indebtedness payable from the Net Revenues of the
System and/or secured by a lien on the System or the Net Revenues thereof.
SECTION 18. Records and Accounts - Annual Audit. The City further covenants and
agrees that so long as any of the Certificates remain Outstanding it will keep and maintain
separate and complete records and accounts pertaining to the operations of the System in which
complete and correct entries shall be made of all transactions relating thereto, as provided by
Chapter 1502, as amended, Texas Government Code, or other applicable law. The Holders of
the Certificates or any duly authorized agent or agents of the Holders shall have the right to
inspect the System and all properties comprising the same. The City further agrees that,
following the close of each Fiscal Year, it will cause an audit of such books and accounts to be
made by an independent firm of Certified Public Accountants. Expenses incurred in making the
annual audit of the operations of the System are to be regarded as Maintenance and Operating
Expenses.
SECTION 19. Remedies in Event of Default. In addition to all the rights and remedies
provided by the laws of the State of Texas, the City covenants and agrees particularly that in the
event the City (a) defaults in the payments to be made to the Certificate Fund, or (b) defaults in
the observance or performance of any other of the covenants, conditions, or obligations set forth
in this Ordinance, the Holders of any of the Certificates shall be entitled to seek a writ of
mandamus issued by a court of proper jurisdiction compelling and requiring the governing body
of the City and other officers of the City to observe and perform any covenant, condition, or
obligation prescribed in this Ordinance.
No delay or omission to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a waiver of any such default or
acquiescence therein, and every such right and power may be exercised from time to time and as
often as may be deemed expedient. The specific remedies herein provided shall be cumulative of
all other existing remedies and the specification of such remedies shall not be deemed to be
exclusive.
SECTION 20. Issuance of Prior Lien Obligations, Junior Lien Obligations, Subordinate
Lien Obligations, and Additional Limited Pledge Obligations. The City hereby expressly
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reserves the right to hereafter issue bonds, notes, warrants, certificates of obligation, or similar
obligations, payable, wholly or in part, as appropriate, from and secured by a pledge of and lien
on the Net Revenues of the System with the following priorities, without limitation as to
principal amount, but subject to any terms, conditions, or restrictions applicable thereto under
existing ordinances, laws, or otherwise:
A. Prior Lien Obligations payable from and equally and ratably secured by a first and
prior lien on and pledge of the Net Revenues of the System;
B. Junior Lien Obligations payable from and equally and ratably secured by a lien on
and pledge of the Net Revenues that is junior and inferior to the lien on and pledge thereof
securing the payment of any Prior Lien Obligations hereafter issued by the City, but prior and
superior to the lien on and pledge of the Net Revenues securing, in part, the payment of the
currently outstanding Limited Pledge Obligations, the Certificates, and any Subordinate Lien
Obligations or Additional Limited Pledge Obligations hereafter issued by the City;
C. Subordinate Lien Obligations payable from and equally and ratably secured by a
lien on and pledge of the Net Revenues that is subordinate and inferior to the lien on and pledge
thereof securing the payment of any Prior Lien Obligations or Junior Lien Obligations hereafter
issued by the City, but prior and superior to the lien on and pledge of the Net Revenues securing,
in part, the payment of the currently outstanding Limited Pledge Obligations, the Certificates,
and any Additional Limited Pledge Obligations hereafter issued by the City; and
D. Additional Limited Pledge Obligations secured by a lien on and pledge of a
limited amount of the Net Revenues in accordance with the provisions of the following
paragraph.
Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations, if
issued, may be payable, in whole or in part, from Net Revenues (without impairment of the
obligation of contract with the holders of the currently outstanding Limited Pledge Obligations
and the Certificates) upon such terms and conditions as the City Council may determine.
Additional Limited Pledge Obligations, if issued and payable, in whole or in part, from Pledged
Revenues (defined in the same or similar terms as provided in Section 9 of this Ordinance or in
the ordinances authorizing the issuance of the currently outstanding Limited Pledge Obligations),
shall not in any event be construed to be payable from the Pledged Revenues authorized by this
Ordinance or in the ordinance authorizing the issuance of the currently outstanding Limited
Pledge Obligations to be budgeted and appropriated for the payment of the Certificates or the
ordinance authorizing the issuance of the currently outstanding Limited Pledge Obligations.
However, the lien on and pledge of the limited amount of Net Revenues securing, in part, the
payment of the Certificates, the Limited Pledge Obligations, and any Additional Limited Pledge
Obligations shall be subordinate and inferior to the pledge of and lien on the Net Revenues
securing the payment of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate
Lien Obligations hereafter issued by the City.
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SECTION 21. Special Covenants. The City hereby further covenants that:
A. it has the lawful power to pledge the Pledged Revenues supporting the
Certificates and has lawfully exercised said powers under the laws of the State of Texas,
including power existing under Chapter 1502, as amended, Texas Government Code, the
Certificate of Obligation Act of 1971, as amended, Texas Local Government Code, Section
271.041 through Section 271.064, and the City’s Home Rule Charter;
B. other than for the payment of the currently outstanding Limited Pledge
Obligations, and the Certificates, the Net Revenues of the System have not in any manner been
pledged to the payment of any debt or obligation of the City or of the System;
C. as long as any Certificates or any interest thereon remain Outstanding, the City
will not sell, lease or encumber (except in the manner provided in Section 20 of this Ordinance)
the System or any substantial part thereof, provided that this covenant shall not be construed to
prohibit the sale of such machinery, or other properties or equipment which has become obsolete
or otherwise unsuited to the efficient operation of the System;
D. to the extent that it legally may, the City further covenants and agrees that, so
long as any of the Certificates, or any interest thereon, are Outstanding, no franchise shall be
granted for the installation or operation of any competing utility systems other than those owned
by the City, and the operation of any such systems by anyone other than the City is hereby
prohibited; and
E. no free service of the System shall be allowed, and should the City or any of its
agents 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 from sources other than the
revenues and income of the System.
SECTION 22. Application of the Covenants and Agreements of any Prior Lien
Obligations, Junior Lien Obligations, or Subordinate Lien Obligations. It is the intention of the
City Council and accordingly hereby recognized and stipulated that the provisions, agreements,
and covenants contained herein bearing upon the management and operations of the System, and
the administration and application of Gross Revenues derived from the operation thereof, shall to
the extent possible be harmonized with like provisions, agreements, and covenants contained in
the ordinances authorizing the issuance of any Prior Lien Obligations, Junior Lien Obligations,
or Subordinate Lien Obligations hereafter issued by the City, and to the extent of any
irreconcilable conflict between the provisions contained herein and in the ordinances authorizing
the issuance of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien
Obligations, the provisions, agreements and covenants contained therein shall prevail to the
extent of such conflict and be applicable to this Ordinance, especially the priority of rights and
benefits conferred thereby to the holders of any Prior Lien Obligations, Junior Lien Obligations,
or Subordinate Lien Obligations hereafter issued by the City. It is expressly recognized that
prior to the issuance of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien
Obligations, the City must comply with each of the conditions precedent contained in the
respective ordinances authorizing the issuance of the currently outstanding Limited Pledge
Obligations and the Certificates, as appropriate.
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SECTION 23. Notices to Holders – Waiver. Wherever this Ordinance provides for
notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and sent by United States mail, first-class postage prepaid, to
the address of each Holder as it appears in the Security Register.
In any case where notice to Holders is given by mail, neither the failure to mail such
notice to any particular Holders, nor any defect in any notice so mailed, shall affect the
sufficiency of such notice with respect to all other Holders. Where this Ordinance provides for
notice in any manner, such notice may be waived in writing by the Holder entitled to receive
such notice, either before or after the event with respect to which such notice is given, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any
action taken in reliance upon such waiver.
SECTION 24. Cancellation. All Certificates surrendered for payment, redemption,
transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be
promptly canceled by it and, if surrendered to the City, shall be delivered to the Paying
Agent/Registrar and, if not already canceled, shall be promptly canceled by the Paying
Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for
cancellation any Certificates previously certified or registered and delivered which the City may
have acquired in any manner whatsoever, and all Certificates so delivered shall be promptly
canceled by the Paying Agent/Registrar. All canceled Certificates held by the Paying
Agent/Registrar shall be destroyed as directed by the City.
SECTION 25. Mutilated, Destroyed, Lost, and Stolen Certificates. If (1) any mutilated
Certificate is surrendered to the Paying Agent/Registrar, or the City and the Paying
Agent/Registrar receive evidence to their satisfaction of the destruction, loss, or theft of any
Certificate, and (2) there is delivered to the City and the Paying Agent/Registrar such security or
indemnity as may be required to save each of them harmless, then, in the absence of notice to the
City or the Paying Agent/Registrar that such Certificate has been acquired by a bona fide
purchaser, the City shall execute and, upon its request, the Paying Agent/Registrar shall register
and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Certificate,
a new Certificate of the same Stated Maturity and interest rate and of like tenor and principal
amount, bearing a number not contemporaneously Outstanding.
In case any such mutilated, destroyed, lost, or stolen Certificate has become or is about to
become due and payable, the City in its discretion may, instead of issuing a new Certificate, pay
such Certificate.
Upon the issuance of any new Certificate or payment in lieu thereof, under this Section,
the City may require payment by the Holder of a sum sufficient to cover any tax or other
governmental charge imposed in relation thereto and any other expenses and charges (including
attorney’s fees and the fees and expenses of the Paying Agent/Registrar) connected therewith.
Every new Certificate issued pursuant to this Section in lieu of any mutilated, destroyed,
lost, or stolen Certificate shall constitute a replacement of the prior obligation of the City,
whether or not the mutilated, destroyed, lost, or stolen Certificate shall be at any time
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enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and
ratably with all other Outstanding Certificates.
The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement and payment of mutilated, destroyed,
lost, or stolen Certificates.
SECTION 26. Sale of the Certificates at Competitive Sale – Approval of the Official
Statement. The Certificates authorized by this Ordinance are hereby sold by the City to
__________________, ___________________, ___________, as the authorized representative
of a group of underwriters at a competitive sale (the Purchasers, having all the rights, benefits,
and obligations of a Holder), in accordance with the provisions of an Official Bid Form (the
Official Bid Form), dated August 2, 2016, attached hereto as Exhibit B and incorporated herein
by reference as a part of this Ordinance for all purposes, at the price of par, plus a cash premium
of $___________ (including the Purchasers’ compensation of $_______ and an excess bid
premium of $___________), plus accrued interest to the date of initial delivery of the
Certificates to the Purchasers and is hereby approved and confirmed. The Initial Certificate shall
be registered in the name of _________________. It is hereby officially found, determined, and
declared that the Purchasers are the highest bidder for the Certificates whose bid, received as a
result of invitations for competitive bids in compliance with applicable law, produced the lowest
true interest cost to the City. The pricing and terms of the sale of the Certificates are hereby
found and determined to be the most advantageous reasonably obtainable by the City. Any
Authorized Official is hereby authorized and directed to execute the Official Bid Form for and
on behalf of the City and as the act and deed of this City Council, and in regard to the approval
and execution of the Official Bid Form, the City Council hereby finds, determines and declares
that the representations, warranties, and agreements of the City contained in the Official Bid
Form are true and correct in all material respects and shall be honored and performed by the
City. Delivery of the Certificates to the Purchasers shall occur as soon as practicable after the
adoption of this Ordinance, upon payment therefor in accordance with the terms of the Official
Bid Form.
Proceeds from the sale of the Certificates shall be applied as follows:
(1) Accrued interest in the amount of $___________ and a Bidder’s Premium
of $____________ received from the Purchasers shall be deposited into the Certificate
Fund.
(2) The City received a net original issue reoffering premium from the sale of
the Certificates of $__________ which is hereby allocated by the City in the following
manner: (1) $___________ to pay the Purchasers’ compensation (2) $______________
shall be deposited into the construction account established in paragraph (3) below, and
(3) $______________ to pay the remaining costs of issuance.
(3) The balance of the proceeds derived from the sale of the Certificates (after
paying costs of issuance) shall be deposited into the special construction account or
accounts created for the projects to be constructed with the proceeds of the Certificates
and used to pay costs of such projects. This special construction account shall be
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established and maintained at the Depository and shall be invested in accordance with the
provisions of Section 10 of this Ordinance. Interest earned on the proceeds of the
Certificates pending completion of construction of the projects financed with such
proceeds shall be accounted for, maintained, deposited, and expended as permitted by the
provisions of Chapter 1201, as amended, Texas Government Code, or as required by any
other applicable law. Thereafter, such amounts shall be expended in accordance with
Section 14 of this Ordinance.
Furthermore, the City hereby ratifies, confirms, and approves in all respects (i) the City’s
prior determination that the Preliminary Official Statement was, as of its date, “deemed final” in
accordance with the Rule (hereinafter defined) and (ii) the use and distribution of the Official
Notice of Sale, Official Bid Form, and Preliminary Official Statement by the Purchasers in
connection with the public offering and sale of the Certificates. The final Official Statement,
being a modification and amendment of the Preliminary Official Statement to reflect the terms of
sale referenced in the Official Bid Form (together with such changes approved by any
Authorized Official, any one or more of said officials), shall be and is hereby in all respects
approved and the Purchasers are hereby authorized to use and distribute the final Official
Statement, dated August 2, 2016, in the reoffering, sale and delivery of the Certificates to the
public. The Mayor and City Secretary are further authorized and directed to manually execute
and deliver for and on behalf of the City copies of the Official Statement in final form as may be
required by the Purchasers, and such final Official Statement in the form and content manually
executed by said officials shall be deemed to be approved by the City Council and constitute the
Official Statement authorized for distribution and use by the Purchasers. The proper officials of
the City are hereby authorized to execute and deliver a certificate pertaining to such Official
Statement as prescribed therein, dated as of the date of payment for and delivery of the
Certificates.
SECTION 27. Covenants to Maintain Tax-Exempt Status.
A. Definitions. When used in this Section, the following terms have the following
meanings:
Bonds means the $___________ “CITY OF SCHERTZ, TEXAS GENERAL
OBLIGATION BONDS, SERIES 2016,” dated August 1, 2016 and issued on the Closing
Date.
“Closing Date” means the date on which the Certificates are first authenticated
and delivered to the initial purchasers against payment therefor.
“Code” means the Internal Revenue Code of 1986, as amended by all legislation,
if any, effective on or before the Closing Date.
“Computation Date” has the meaning set forth in Section 1.148-1(b) of the
Regulations.
“Gross Proceeds” means any proceeds as defined in Section 1.148-1(b) of the
Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the
Regulations, of the Certificates.
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“Investment” has the meaning set forth in Section 1.148-1(b) of the Regulations.
“Nonpurpose Investment” means any investment property, as defined in
section 148(b) of the Code, in which Gross Proceeds of the Certificates are invested and
which is not acquired to carry out the governmental purposes of the Certificates.
“Rebate Amount” has the meaning set forth in Section 1.148-1(b) of the
Regulations.
“Regulations” means any proposed, temporary, or final Income Tax Regulations
issued pursuant to sections 103 and 141 through 150 of the Code, and 103 of the Internal
Revenue Code of 1954, which are applicable to the Certificates. Any reference to any
specific Regulation shall also mean, as appropriate, any proposed, temporary or final
Income Tax Regulation designed to supplement, amend or replace the specific Regulation
referenced.
“Yield” of
(1) any Investment has the meaning set forth in Section 1.148-5 of the
Regulations; and
(2) the Certificates means the combined yield on the Bonds and the
Certificates, treating them as a single issue and as calculated pursuant to Section
1.148-4 of the Regulations.
B. Not to Cause Interest to Become Taxable. The City shall not use, permit the use
of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition,
construction or improvement of which is to be financed or refinanced directly or indirectly with
Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on
any Certificate to become includable in the gross income, as defined in section 61 of the Code, of
the owner thereof for federal income tax purposes. Without limiting the generality of the
foregoing, unless and until the City receives a written opinion of counsel nationally recognized
in the field of municipal bond law to the effect that failure to comply with such covenant will not
adversely affect the exemption from federal income tax of the interest on any Certificate, the
City shall comply with each of the specific covenants in this Section.
C. No Private Use or Private Payments. Except to the extent that it will not cause the
Certificates to become “private activity bonds” within the meaning of section 141 of the Code
and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated
Maturity of Certificates:
(1) exclusively own, operate and possess all property the acquisition,
construction or improvement of which is to be financed or refinanced directly or
indirectly with Gross Proceeds of the Certificates, and not use or permit the use of such
Gross Proceeds (including all contractual arrangements with terms different than those
applicable to the general public) or any property acquired, constructed or improved with
such Gross Proceeds in any activity carried on by any person or entity (including the
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United States or any agency, department and instrumentality thereof) other than a state or
local government, unless such use is solely as a member of the general public; and
(2) not directly or indirectly impose or accept any charge or other payment by
any person or entity who is treated as using Gross Proceeds of the Certificates or any
property the acquisition, construction or improvement of which is to be financed or
refinanced directly or indirectly with such Gross Proceeds, other than taxes of general
application within the City or interest earned on investments acquired with such Gross
Proceeds pending application for their intended purposes.
D. No Private Loan. Except to the extent it will not cause the Certificates to become
“private activity bonds” within the meaning of section 141 of the Code and the Regulations and
rulings thereunder, the City shall not use Gross Proceeds of the Certificates to make or finance
loans to any person or entity other than a state or local government. For purposes of the
foregoing covenant, such Gross Proceeds are considered to be “loaned” to a person or entity if-
(1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to
such person or entity in a transaction which creates a debt for federal income tax purposes; (2)
capacity in or service from such property is committed to such person or entity under a take-or-
pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of
ownership, of such Gross Proceeds or any property acquired, constructed or improved with such
Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a
loan.
E. Not to Invest at Higher Yield. Except to the extent it will not cause the
Certificates to become “arbitrage bonds” within the meaning of section 148 of the Code and the
Regulations and rulings thereunder, the City shall not at any time prior to the final Stated
Maturity of the Certificates directly or indirectly invest Gross Proceeds in any Investment, if as a
result of such investment the Yield of any Investment acquired with Gross Proceeds, whether
then held or previously disposed of, materially exceeds the Yield of the Certificates.
F. Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the
Code and the Regulations and rulings thereunder, the City shall not take or omit to take any
action which would cause the Certificates to be federally guaranteed within the meaning of
section 149(b) of the Code and the Regulations and rulings thereunder.
G. Information Report. The City shall timely file the information required by section
149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in
such place as the Secretary may prescribe.
H. Rebate of Arbitrage Profits. Except to the extent otherwise provided in section
148(f) of the Code and the Regulations and rulings thereunder:
(1) The City shall account for all Gross Proceeds (including all receipts,
expenditures and investments thereof) on its books of account separately and apart from
all other funds (and receipts, expenditures and investments thereof) and shall retain all
records of accounting for at least six years after the day on which the last Outstanding
Certificate is discharged. However, to the extent permitted by law, the City may
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commingle Gross Proceeds of the Certificates with other money of the City, provided that
the City separately accounts for each receipt and expenditure of Gross Proceeds and the
obligations acquired therewith.
(2) Not less frequently than each Computation Date, the City shall calculate
the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and
the Regulations and rulings thereunder. The City shall maintain such calculations with its
official transcript of proceedings relating to the issuance of the Certificates until six years
after the final Computation Date.
(3) As additional consideration for the purchase of the Certificates by the
Purchasers and the loan of the money represented thereby and in order to induce such
purchase by measures designed to insure the excludability of the interest thereon from the
gross income of the owners thereof for federal income tax purposes, the City shall pay to
the United States out of the Certificate Fund or its general fund, as permitted by
applicable Texas statute, regulation or opinion of the Attorney General of the State of
Texas, the amount that when added to the future value of previous rebate payments made
for the Certificates equals (i) in the case of a Final Computation Date as defined in
Section 1.148-3(e)(2) of the Regulations, one hundred percent (100%) of the Rebate
Amount on such date; and (ii) in the case of any other Computation Date, ninety percent
(90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be
made at the times, in the installments, to the place and in the manner as is or may be
required by section 148(f) of the Code and the Regulations and rulings thereunder, and
shall be accompanied by Form 8038-T or such other forms and information as is or may
be required by section 148(f) of the Code and the Regulations and rulings thereunder.
(4) The City shall exercise reasonable diligence to assure that no errors are
made in the calculations and payments required by paragraphs (2) and (3), and if an error
is made, to discover and promptly correct such error within a reasonable amount of time
thereafter (and in all events within one hundred eighty (180) days after discovery of the
error), including payment to the United States of any additional Rebate Amount owed to
it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations.
I. Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of
the Code and the Regulations and rulings thereunder, the City shall not, at any time prior to the
earlier of the Stated Maturity or final payment of the Certificates, enter into any transaction that
reduces the amount required to be paid to the United States pursuant to Subsection H of this
Section because such transaction results in a smaller profit or a larger loss than would have
resulted if the transaction had been at arm’s length and had the Yield of the Certificates not been
relevant to either party.
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J. Certificates Not Hedge Bonds.
(1) The City reasonably expects to spend at least 85% of the spendable
proceeds of the Certificates within three years after such Certificates are issued.
(2) Not more than 50% of the proceeds of the Certificates will be invested in
Nonpurpose Investments having a substantially guaranteed Yield for a period of 4 years
or more.
K. Elections. The City hereby directs and authorizes each Authorized Official, either
individually or any combination of them, to make elections permitted or required pursuant to the
provisions of the Code or the Regulations, as they deem necessary or appropriate in connection
with the Certificates, in the Certificate as to Tax Exemption or similar or other appropriate
certificate, form or document. Such elections shall be deemed to be made on the Closing Date.
SECTION 28. Control and Custody of Certificates. The Mayor of the City shall be and is
hereby authorized to take and have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas and shall take and have charge and
control of the Certificates pending their approval by the Attorney General of the State of Texas,
the registration thereof by the Comptroller of Public Accounts of the State of Texas and the
delivery of the Certificates to the Purchasers.
Furthermore, each Authorized Official, either individually or any combination of them, is
hereby authorized and directed to furnish and execute such documents relating to the City and its
financial affairs as may be necessary for the issuance of the Certificates, the approval of the
Attorney General of the State of Texas and their registration by the Comptroller of Public
Accounts of the State of Texas and, together with the City’s financial advisors, Bond Counsel,
and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial
Certificate to the Purchasers and, when requested in writing by the Purchasers, the initial
exchange thereof for definitive Certificates.
SECTION 29. Satisfaction of Obligation of City. If the City shall pay or cause to be
paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and
interest on the Certificates, at the times and in the manner stipulated in this Ordinance, then the
pledge of taxes levied and the lien on and pledge of the Pledged Revenues under this Ordinance
and all covenants, agreements, and other obligations of the City to the Holders shall thereupon
cease, terminate, and be discharged and satisfied.
Certificates, or any principal amount(s) thereof, shall be deemed to have been paid within
the meaning and with the effect expressed above in this Section when (i) money sufficient to pay
in full such Certificates or the principal amount(s) thereof at Stated Maturity or to the redemption
date therefor, together with all interest due thereon, shall have been irrevocably deposited with
and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, and/or
(ii) Government Securities shall have been irrevocably deposited in trust with the Paying
Agent/Registrar, or an authorized escrow agent, which Government Securities have, in the case
of a net defeasance, been certified by an independent accounting firm to mature as to principal
and interest in such amounts and at such times as will insure the availability, without
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reinvestment, of sufficient money, together with any money deposited therewith, if any, to pay
when due the principal of and interest on such Certificates, or the principal amount(s) thereof, on
and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or
waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have
been made) the redemption date thereof for the Certificates. In the event of a gross defeasance of
the Certificates, the City shall deliver a certificate from its financial advisor, the Paying
Agent/Registrar, or another qualified third party concerning the deposit of cash and/or
Government Securities to pay, when due, the principal of, redemption premium (if any), and
interest due on any defeased Certificate. The City covenants that no deposit of money or
Government Securities will be made under this Section and no use made of any such deposit
which would cause the Certificates to be treated as arbitrage bonds within the meaning of section
148 of the Code (as defined in Section 27 hereof).
Any money so deposited with the Paying Agent/Registrar, and all income from
Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow
agent, pursuant to this Section which is not required for the payment of the Certificates, or any
principal amount(s) thereof, or interest thereon with respect to which such money has been so
deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any
money held by the Paying Agent/Registrar for the payment of the principal of and interest on the
Certificates and remaining unclaimed for a period of three (3) years after the Stated Maturity of
the Certificates, or applicable redemption date of the Certificates, such money was deposited and
is held in trust to pay shall upon the request of the City be remitted to the City against a written
receipt therefor, subject to the unclaimed property laws of the State of Texas.
Notwithstanding any other provision of this Ordinance to the contrary, it is hereby
provided that any determination not to redeem defeased Certificates that is made in conjunction
with the payment arrangements specified in subsection (i) or (ii) above shall not be irrevocable,
provided that: (1) in the proceedings providing for such defeasance, the City expressly reserves
the right to call the defeased Certificates for redemption; (2) gives notice of the reservation of
that right to the owners of the defeased Certificates immediately following the defeasance;
(3) directs that notice of the reservation be included in any redemption notices that it authorizes;
and (4) at the time of the redemption, satisfies the conditions of (i) or (ii) above with respect to
such defeased debt as though it was being defeased at the time of the exercise of the option to
redeem the defeased Certificates, after taking the redemption into account in determining the
sufficiency of the provisions made for the payment of the defeased Certificates.
SECTION 30. Printed Opinion. The Purchasers’ obligation to accept delivery of the
Certificates is subject to their being furnished a final opinion of Norton Rose Fulbright US LLP,
San Antonio, Texas, as Bond Counsel, approving certain legal matters as to the Certificates, this
opinion to be dated and delivered as of the date of initial delivery and payment for such
Certificates. Printing of a true and correct copy of this opinion on the reverse side of each of the
Certificates, with appropriate certificate pertaining thereto executed by facsimile signature of the
City Secretary of the City is hereby approved and authorized.
SECTION 31. CUSIP Numbers. CUSIP numbers may be printed or typed on the
definitive Certificates. It is expressly provided, however, that the presence or absence of CUSIP
numbers on the definitive Certificates shall be of no significance or effect as regards the legality
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thereof, and neither the City nor Bond Counsel are to be held responsible for CUSIP numbers
incorrectly printed or typed on the definitive Certificates.
SECTION 32. Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.
SECTION 33. Ordinance a Contract, Amendments - Outstanding Certificates. The City
acknowledges that the covenants and obligations of the City herein contained are a material
inducement to the purchase of the Certificates. This Ordinance shall constitute a contract with
the Holders from time to time, binding on the City and its successors and assigns, and it shall not
be amended or repealed by the City so long as any Certificate remains Outstanding except as
permitted in this Section. The City may, without the consent of or notice to any Holders, from
time to time and at any time, amend this Ordinance in any manner not detrimental to the interests
of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or
omission herein. In addition, the City may, with the written consent of Holders holding a
majority in aggregate principal amount of the Certificates then Outstanding affected thereby,
amend, add to, or rescind any of the provisions of this Ordinance; provided, however, that,
without the consent of all Holders of Outstanding Certificates, no such amendment, addition, or
rescission shall (1) extend the time or times of payment of the principal of and interest on the
Certificates, reduce the principal amount thereof or the rate of interest thereon, or in any other
way modify the terms of payment of the principal of, the redemption price therefor, or interest on
the Certificates, (2) give any preference to any Certificate over any other Certificate, or (3)
reduce the aggregate principal amount of Certificates required for consent to any such
amendment, addition, or rescission.
SECTION 34. Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is
intended or shall be construed to confer upon any person other than the City, Bond Counsel,
Paying Agent/Registrar, and the Holders, any right, remedy, or claim, legal or equitable, under or
by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being
intended to be and being for the sole and exclusive benefit of the City, Bond Counsel, Paying
Agent/Registrar, and the Holders.
SECTION 35. Inconsistent Provisions. All ordinances and resolutions, or parts thereof,
which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to
the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling
as to the matters ordained herein.
SECTION 36. Governing Law. This Ordinance shall be construed and enforced in
accordance with the laws of the State of Texas and the United States of America.
SECTION 37. Severability. If any provision of this Ordinance or the application thereof
to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the
application of such provision to other persons and circumstances shall nevertheless be valid, and
the City Council hereby declares that this Ordinance would have been enacted without such
invalid provision.
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SECTION 38. Construction of Terms. If appropriate in the context of this Ordinance,
words of the singular number shall be considered to include the plural, words of the plural
number shall be considered to include the singular, and words of the masculine, feminine or
neuter gender shall be considered to include the other genders.
SECTION 39. Incorporation of Preamble Recitals. The recitals contained in the
preamble hereof are hereby found to be true, and such recitals are hereby made a part of this
Ordinance for all purposes and are adopted as a part of the judgment and findings of the City
Council of the City.
SECTION 40. Authorization of Paying Agent/Registrar Agreement. The City Council of
the City hereby finds and determines that it is in the best interest of the City to authorize the
execution of a Paying Agent/Registrar Agreement concerning the payment, exchange,
registration, and transferability of the Certificates. A copy of the Paying Agent/Registrar
Agreement is attached hereto, in substantially final form, as Exhibit A and is incorporated by
reference to the provisions of this Ordinance.
SECTION 41. Public Meeting. It is officially found, determined, and declared that the
meeting at which this Ordinance is adopted was open to the public and public notice of the time,
place, and subject matter of the public business to be considered at such meeting, including this
Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code.
SECTION 42. Unavailability of Authorized Publication. If, because of the temporary or
permanent suspension of any newspaper, journal, or other publication, or, for any reason,
publication of notice cannot be made meeting any requirements herein established, any notice
required to be published by the provisions of this Ordinance shall be given in such other manner
and at such time or times as in the judgment of the City or of the Paying Agent/Registrar shall
most effectively approximate such required publication and the giving of such notice in such
manner shall for all purposes of this Ordinance be deemed to be in compliance with the
requirements for publication thereof.
SECTION 43. No Recourse Against City Officials. No recourse shall be had for the
payment of principal of, premium, if any, or interest on any Certificate or for any claim based
thereon or on this Ordinance against any official of the City or any person executing any
Certificate.
SECTION 44. Continuing Disclosure Undertaking.
A. Definitions.
As used in this Section, the following terms have the meanings ascribed to such terms
below:
EMMA means the MSRB’s Electronic Municipal Market Access system, accessible by
the general public, without charge, on the internet through the uniform resource locator (URL)
http://www.emma.msrb.org.
MSRB means the Municipal Securities Rulemaking Board.
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Rule means SEC Rule 15c2-12, as amended from time to time.
SEC means the United States Securities and Exchange Commission.
B. Annual Reports.
The City shall file annually with the MSRB, (1) within six months after the end of each
fiscal year of the City ending in or after 2016, financial information and operating data with
respect to the City of the general type included in the final Official Statement authorized by
Section 26 of this Ordinance, being the information described in Exhibit D hereto, and (2) if not
provided as part of such financial information and operating data, audited financial statements of
the City, when and if available. Any financial statements so to be provided shall be (i) prepared
in accordance with the accounting principles described in Exhibit D hereto, or such other
accounting principles as the City may be required to employ from time to time pursuant to state
law or regulation, and (ii) audited, if the City commissions an audit of such financial statements
and the audit is completed within the period during which they must be provided. If the audit of
such financial statements is not complete within such period, then the City shall file unaudited
financial statements within such period and audited financial statements for the applicable fiscal
year to the MSRB, when and if the audit report on such financial statements becomes available.
Under current Texas law, including, but not limited to, Chapter 103, as amended, Texas Local
Government Code, the City must have its records and accounts audited annually and shall have
an annual financial statement prepared based on the audit. The annual financial statement,
including the auditor’s opinion on the statement, shall be filed in the office of the City Secretary
within 180 days after the last day of the City’s fiscal year. Additionally, upon the filing of this
financial statement and the annual audit, these documents are subject to the Texas Open Records
Act, as amended, Texas Government Code, Chapter 552.
If the City changes its fiscal year, it will file notice of such change (and of the date of the
new fiscal year end) with the MSRB prior to the next date by which the City otherwise would be
required to provide financial information and operating data pursuant to this Section.
C. Notice of Certain Events.
The City shall file notice of any of the following events with respect to the Certificates to
the MSRB in a timely manner and not more than 10 business days after occurrence of the event:
(1) Principal and interest payment delinquencies;
(2) Non-payment related defaults, if material;
(3) Unscheduled draws on debt service reserves reflecting financial difficulties;
(4) Unscheduled draws on credit enhancements reflecting financial difficulties;
(5) Substitution of credit or liquidity providers, or their failure to perform;
(6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other
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material notices or determinations with respect to the tax status of the Certificates, or other
material events affecting the tax status of the Certificates;
(7) Modifications to rights of holders of the Certificates, if material;
(8) Certificate calls, if material, and tender offers;
(9) Defeasances;
(10) Release, substitution, or sale of property securing repayment of the Certificates, if
material;
(11) Rating changes;
(12) Bankruptcy, insolvency, receivership, or similar event of the City, which shall
occur as described below;
(13) The consummation of a merger, consolidation, or acquisition involving the City
or the sale of all or substantially all of its assets, other than in the ordinary course of business, the
entry into of a definitive agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms, if material; and
(14) Appointment of a successor or additional paying agent/registrar or the change of
name of a paying agent/registrar, if material.
For these purposes, any event described in the immediately preceding paragraph (12) is
considered to occur when any of the following occur: the appointment of a receiver, fiscal agent,
or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any
other proceeding under state or federal law in which a court or governmental authority has
assumed jurisdiction over substantially all of the assets or business of the City, or if such
jurisdiction has been assumed by leaving the existing governing body and officials or officers in
possession but subject to the supervision and orders of a court or governmental authority, or the
entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or
governmental authority having supervision or jurisdiction over substantially all of the assets or
business of the City.
The City shall file notice with the MSRB, in a timely manner, of any failure by the City
to provide financial information or operating data in accordance with this Section by the time
required by this Section.
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D. Limitations, Disclaimers, and Amendments.
The City shall be obligated to observe and perform the covenants specified in this Section
for so long as, but only for so long as, the City remains an “obligated person” with respect to the
Certificates within the meaning of the Rule, except that the City in any event will give notice of
any deposit that causes the Certificates to be no longer Outstanding.
The provisions of this Section are for the sole benefit of the holders and beneficial
owners of the Certificates, and nothing in this Section, express or implied, shall give any benefit
or any legal or equitable right, remedy, or claim hereunder to any other person. The City
undertakes to provide only the financial information, operating data, financial statements, and
notices which it has expressly agreed to provide pursuant to this Section and does not hereby
undertake to provide any other information that may be relevant or material to a complete
presentation of the City’s financial results, condition, or prospects or hereby undertake to update
any information provided in accordance with this Section or otherwise, except as expressly
provided herein. The City does not make any representation or warranty concerning such
information or its usefulness to a decision to invest in or sell Certificates at any future date.
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER
OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN
CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM
ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITH OR WITHOUT FAULT
ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT
AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON
ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR
MANDAMUS OR SPECIFIC PERFORMANCE.
No default by the City in observing or performing its obligations under this Section shall
constitute a breach of or default under this Ordinance for purposes of any other provision of this
Ordinance.
Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the
duties of the City under federal and state securities laws.
The provisions of this Section may be amended by the City from time to time to adapt to
changed circumstances that arise from a change in legal requirements, a change in law, or a
change in the identity, nature, status, or type of operations of the City, but only if (1) the
provisions of this Section, as so amended, would have permitted an underwriter to purchase or
sell Certificates in the primary offering of the Certificates in compliance with the Rule, taking
into account any amendments or interpretations of the Rule to the date of such amendment, as
well as such changed circumstances, and (2) either (a) the holders of a majority in aggregate
principal amount (or any greater amount required by any other provision of this Ordinance that
authorizes such an amendment) of the Outstanding Certificates consent to such amendment or
(b) a person that is unaffiliated with the City (such as nationally recognized bond counsel)
determines that such amendment will not materially impair the interests of the holders and
beneficial owners of the Certificates. The City may also repeal or amend the provisions of this
Section if the SEC amends or repeals the applicable provisions of the Rule or any court of final
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jurisdiction enters judgment that such provisions of the Rule are invalid, and the City also may
amend the provisions of this Section in its discretion in any other manner or circumstance, but in
either case only if and to the extent that the provisions of this sentence would not have prevented
an underwriter from lawfully purchasing or selling Certificates in the primary offering of the
Certificates, giving effect to (a) such provisions as so amended and (b) any amendments or
interpretations of the Rule. If the City so amends the provisions of this Section, the City shall
include with any amended financial information or operating data next provided in accordance
with this Section an explanation, in narrative form, of the reasons for the amendment and of the
impact of any change in the type of financial information or operating data so provided.
E. Information Format – Incorporation by Reference.
The City information required under this Section shall be filed with the MSRB through
EMMA in such format and accompanied by such identifying information as may be specified
from time to time thereby. Under the current rules of the MSRB, continuing disclosure
documents submitted to EMMA must be in word-searchable portable document format (PDF)
files that permit the document to be saved, viewed, printed, and retransmitted by electronic
means and the series of obligations to which such continuing disclosure documents relate must
be identified by CUSIP number or numbers.
Financial information and operating data to be provided pursuant to this Section may be
set forth in full in one or more documents or may be included by specific reference to any
document (including an official statement or other offering document) available to the public
through EMMA or filed with the SEC.
SECTION 45. Book-Entry Only System .
It is intended that the Certificates will initially be registered so as to participate in a
securities depository system (the DTC System) with the Depository Trust Company, New York,
New York, or any successor entity thereto (DTC), as set forth herein. Each Stated Maturity of
the Certificates shall be issued (following cancellation of the Initial Certificates described in
Section 7) in the form of a single definitive Certificate. Upon issuance, the ownership of each
such Certificate shall be registered in the name of Cede & Co., as the nominee of DTC, and all of
the Outstanding Certificates shall be registered in the name of Cede & Co., as the nominee of
DTC. The City and the Paying Agent/Registrar are authorized to execute, deliver, and take the
actions set forth in such letters to or agreements with DTC as shall be necessary to effectuate the
DTC System, including the Letter of Representations attached hereto as Exhibit D (the
Representation Letter).
With respect to the Certificates registered in the name of Cede & Co., as nominee of
DTC, the City and the Paying Agent/Registrar shall have no responsibility or obligation to any
broker-dealer, bank, or other financial institution for which DTC holds the Certificates from time
to time as securities depository (a Depository Participant) or to any person on behalf of whom
such a Depository Participant holds an interest in the Certificates (an Indirect Participant).
Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar
shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC,
Cede & Co., or any Depository Participant with respect to any ownership interest in the
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Certificates, (ii) the delivery to any Depository Participant or any other person, other than a
registered owner of the Certificates, as shown on the Security Register, of any notice with
respect to the Certificates, including any notice of redemption, or (iii) the delivery to any
Depository Participant or any Indirect Participant or any other Person, other than a Holder of a
Certificate, of any amount with respect to principal of, premium, if any, or interest on the
Certificates. While in the DTC System, no person other than Cede & Co., or any successor
thereto, as nominee for DTC, shall receive a bond certificate evidencing the obligation of the
City to make payments of principal, premium, if any, and interest pursuant to this Ordinance.
Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC has
determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in
this Ordinance with respect to interest checks or drafts being mailed to the Holder, the word
“Cede & Co.” in this Ordinance shall refer to such new nominee of DTC.
In the event that (a) the City determines that DTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (b) the Representation Letter
shall be terminated for any reason, or (c) DTC or the City determines that it is in the best interest
of the beneficial owners of the Certificates that they be able to obtain certificated Certificates, the
City shall notify the Paying Agent/Registrar, DTC, and the Depository Participants of the
availability within a reasonable period of time through DTC of bond certificates, and the
Certificates shall no longer be restricted to being registered in the name of Cede & Co., as
nominee of DTC. At that time, the City may determine that the Certificates shall be registered in
the name of and deposited with a successor depository operating a securities depository system,
as may be acceptable to the City, or such depository’s agent or designee, and if the City and the
Paying Agent/Registrar do not select such alternate securities depository system then the
Certificates may be registered in whatever name or names the Holders of Certificates transferring
or exchanging the Certificates shall designate, in accordance with the provisions hereof.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any
Certificate is registered in the name of Cede & Co., as nominee of DTC, all payments with
respect to principal of, premium, if any, and interest on such Certificate and all notices with
respect to such Certificate shall be made and given, respectively, in the manner provided in the
Representation Letter.
SECTION 46. Further Procedures. The officers and employees of the City are hereby
authorized, empowered and directed from time to time and at any time to do and perform all such
acts and things and to execute, acknowledge and deliver in the name and under the corporate seal
and on behalf of the City all such instruments, whether or not herein mentioned, as may be
necessary or desirable in order to carry out the terms and provisions of this Ordinance, the initial
sale and delivery of the Certificates, the Official Bid Form, the Paying Agent/Registrar
Agreement, and the Official Statement. In addition, prior to the initial delivery of the
Certificates, any Authorized Official and Bond Counsel are hereby authorized and directed to
approve any technical changes or corrections to this Ordinance or to any of the instruments
authorized and approved by this Ordinance and as described in the Official Statement necessary
in order to (i) correct any ambiguity or mistake or properly or more completely document the
transactions contemplated and approved by this Ordinance, (ii) obtain a rating from any of the
national bond rating agencies, or (iii) obtain the approval of the Certificates by the Texas
Attorney General’s office. In case any officer of the City whose signature shall appear on any
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certificate shall cease to be such officer before the delivery of such certificate, such signature
shall nevertheless be valid and sufficient for all purposes the same as if such officer had
remained in office until such delivery.
SECTION 47. Contracts with Financial Advisor and/or Bond Counsel. The City Council
authorizes the Mayor, the Mayor Pro Tem, and/or the City Manager, or their designees, to take
all actions necessary to execute any necessary financial advisory contracts with SAMCO Capital
Markets, Inc., as the financial advisor to the City (the Financial Advisor). The City understands
that under applicable federal securities laws and regulations that the City must have a contractual
arrangement with its Financial Advisor relating to the sale, issuance, and delivery of the
Certificates. In addition, the City Council also authorizes the Mayor, the Mayor Pro Tem, and/or
the City Manager, or their designees, to take all actions necessary to execute any necessary
engagement agreement with Norton Rose Fulbright US LLP, as the Bond Counsel to the City.
SECTION 48. City’s Consent to Provide Information and Documentation to the Texas
MAC. The Municipal Advisory Council of Texas (the Texas MAC), a non-profit membership
corporation organized exclusively for non-profit purposes described in section 501(c)(6) of the
Internal Revenue Code and which serves as a comprehensive financial information repository
regarding municipal debt issuers in Texas, requires provision of written documentation regarding
the issuance of municipal debt by the issuers thereof. In support of the purpose of the Texas
MAC and in compliance with applicable law, the City hereby consents to and authorizes any
Authorized Official, Bond Counsel to the City, and/or Financial Advisor to the City to provide to
the Texas MAC information and documentation requested by the Texas MAC relating to the
Certificates; provided, however, that no such information and documentation shall be provided
prior to the Closing Date. This consent and authorization relates only to information and
documentation that is a part of the public record concerning the issuance of the Certificates.
SECTION 49. Effective Date. Pursuant to the provisions of Section 1201.028, as
amended, Texas Government Code, this Ordinance shall be effective immediately upon
adoption, notwithstanding any provision in the City’s Home Rule Charter to the contrary
concerning a multiple reading requirement for the adoption of ordinances.
[The remainder of this page intentionally left blank.]
27316930.2 S-1
PASSED, APPROVED, AND ADOPTED on the 2nd day of August, 2016.
CITY OF SCHERTZ, TEXAS
____________________________________
Mayor
ATTEST:
_______________________________________
City Secretary
(CITY SEAL)
27316930.2 S-1
INDEX TO EXHIBITS
Exhibit A Paying Agent/Registrar Agreement
Exhibit B Official Bid Form
Exhibit C Description of Annual Financial Information
Exhibit D DTC Letter of Representations
27316930.2 A-1
EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
See Tab No. ___
27316930.2 B-1
EXHIBIT B
OFFICIAL BID FORM
See Tab No. ___
27316930.2 C-1
EXHIBIT C
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 44 of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided
annually in accordance with such Section are as specified (and included in the Appendix or
under the headings of the Official Statement referred to) below:
(1) The City’s audited financial statements for the most recently concluded fiscal year
or to the extent these audited financial statements are not available, the portions of the unaudited
financial statements of the City attached to the Official Statement as Appendix D, but for the
most recently concluded fiscal year.
(2) The information in the Official Statement under Table 1 of the Official Statement
and Tables 1 through 10 of Appendix A, to the Official Statement.
Accounting Principles
The accounting principles referred to in such Section are generally accepted accounting
principles for governmental units as prescribed by the Government Accounting Standards Board
from time to time.
27316930.2 D-1
EXHIBIT D
DTC LETTER OF REPRESENTATIONS
SEE TAB NO. __
Agenda No. 7
CITY COUNCIL MEMORANDUM
City Council Meeting: August 2, 2016
Department: Finance
Subject: CONSIDERATION OF BIDS RELATING TO
THE SALE OF OBLIGATIONS DESIGNATED
AS “CITY OF SCHERTZ, TEXAS
COMBINATION TAX AND LIMITED
PLEDGE REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2016B”,
CONSIDERATION AND APPROVAL OF
FINANCIAL ADVISOR’S
RECOMMENDATION CONCERNING THIS
MATTER; AND OTHER MATTERS IN
CONNECTION THEREWITH
BACKGROUND:
Bids were received at 12PM CDT today (August 2, 2016) for the City’s Combination Tax and
Limited Pledge Revenue Certificates of Obligation, Series 2016B (the “Obligations”). The
City’s financial advisor, SAMCO Capital Markets, will discuss the bid process and bid results
before the Council in open meeting.
FISCAL IMPACT
The fiscal impact of the sale of the Obligations will be discussed in Agenda Item No. 6.
RECOMMENDATION
This is not an action item and the City’s Financial Advisor will make a recommendation
pertaining to the bids in the meeting. Recommended motion:
A MOTION BY TRUSTEE ______________ AND SECONDED BY TRUSTEE
_____________ THAT THE CITY COUNCIL ACCEPT THE FINANCIAL ADVISOR’S
RECOMMENDATION CONCERNING THE ACCEPTANCE OF BIDS RELATING TO
THE SALE OF OBLIGATIONS DESIGNATED AS “CITY OF SCHERTZ, TEXAS
COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF
OBLIGATION, TAXABLE SERIES 2016B”
ATTACHMENT(S)
None
Agenda No. 8
CITY COUNCIL MEMORANDUM
City Council Meeting: August 2, 2016
Department: Finance
Subject: ORDINANCE NO. 16-B-23 - AN ORDINANCE
AUTHORIZING THE ISSUANCE OF “CITY
OF SCHERTZ, TEXAS COMBINATION TAX
AND LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION,
TAXABLE SERIES 2016B”; PROVIDING FOR
THE PAYMENT OF SAID CERTIFICATES
BY THE LEVY OF AN AD VALOREM TAX
UPON ALL TAXABLE PROPERTY WITHIN
THE CITY AND FURTHER SECURING SAID
CERTIFICATES BY A LIEN ON AND
PLEDGE OF THE PLEDGED REVENUES OF
THE SYSTEM; PROVIDING THE TERMS
AND CONDITIONS OF SAID CERTIFICATES
AND RESOLVING OTHER MATTERS
INCIDENT AND RELATING TO THE
ISSUANCE, PAYMENT, SECURITY, SALE,
AND DELIVERY OF SAID CERTIFICATES,
INCLUDING THE APPROVAL AND
DISTRIBUTION OF AN OFFICIAL
STATEMENT PERTAINING THERETO;
AUTHORIZING THE EXECUTION OF A
PAYING AGENT/REGISTRAR AGREEMENT
AND AN OFFICIAL BID FORM;
COMPLYING WITH THE REQUIREMENTS
OF THE LETTER OF REPRESENTATIONS
PREVIOUSLY EXECUTED WITH THE
DEPOSITORY TRUST COMPANY;
AUTHORIZING THE EXECUTION OF ANY
NECESSARY ENGAGEMENT
AGREEMENTS WITH THE CITY’S
FINANCIAL ADVISORS AND/OR BOND
COUNSEL; AND PROVIDING AN
EFFECTIVE DATE (First & Final)
BACKGROUND:
The Certificate Ordinance before the Council tonight is to authorize the sale of approximately
$1,400,000 Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable
Series 2016B. The proceeds will be used for the construction of a community swimming pool
and aquatic facility. The YMCA has entered into an agreement with the City to make an annual
lease payment of $100,000 which will be used to support the entirety of this Certificate. Due to
the nature of the agreement the Certificates have been designated as taxable obligations in order
to comply with Internal Revenue Service tax law. The Certificates will be amortized over 20
years and will be callable by the City in 10 years as is customary for a financing of this size.
FISCAL IMPACT
The authorization of the Certificate Ordinance will be supported by the annual lease payment
coming from the YMCA. The proceeds will be delivered to the City on September 1st. The
Certificates are being issued at the same time as the General Obligation Bonds as well as Tax-
Exempt Certificates of Obligation, to be discussed in greater detail under separate agenda items.
When the Tax-Exempt CO and GO Bonds are approved, along with this Taxable CO, it is
estimated that there will be little to no impact on the I&S Tax Rate
RECOMMENDATION
Staff recommends approving the Certificate Ordinance on first and final reading selling the
securities to the initial purchaser. Recommended motion:
A MOTION BY COUNCILMEMBER ______________ AND SECONDED BY
COUNCILMEMBER __________ THAT THE CITY COUNCIL ADOPT AN
ORDINANCE AUTHORIZING THE ISSUANCE OF “CITY OF SCHERTZ, TEXAS
COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF
OBLIGATION, TAXABLE SERIES 2016B”
ATTACHMENT(S)
Certificate Ordinance.
41851932.3
DRAFT 7/18/16
AN ORDINANCE AUTHORIZING THE ISSUANCE OF “CITY OF
SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE
REVENUE CERTIFICATES OF OBLIGATION, TAXABLE SERIES
2016B”; PROVIDING FOR THE PAYMENT OF SAID CERTIFICATES
BY THE LEVY OF AN AD VALOREM TAX UPON ALL TAXABLE
PROPERTY WITHIN THE CITY AND FURTHER SECURING SAID
CERTIFICATES BY A LIEN ON AND PLEDGE OF THE PLEDGED
REVENUES OF THE SYSTEM; PROVIDING THE TERMS AND
CONDITIONS OF SAID CERTIFICATES AND RESOLVING OTHER
MATTERS INCIDENT AND RELATING TO THE ISSUANCE,
PAYMENT, SECURITY, SALE, AND DELIVERY OF SAID
CERTIFICATES, INCLUDING THE APPROVAL AND DISTRIBUTION
OF AN OFFICIAL STATEMENT PERTAINING THERETO;
AUTHORIZING THE EXECUTION OF A PAYING AGENT/REGISTRAR
AGREEMENT AND AN OFFICIAL BID FORM; COMPLYING WITH
THE REQUIREMENTS OF THE LETTER OF REPRESENTATIONS
PREVIOUSLY EXECUTED WITH THE DEPOSITORY TRUST
COMPANY; AUTHORIZING THE EXECUTION OF ANY NECESSARY
ENGAGEMENT AGREEMENTS WITH THE CITY’S FINANCIAL
ADVISORS AND/OR BOND COUNSEL; AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the City Council of the City of Schertz, Texas (the City) has caused notice
to be given of its intention to issue certificates of obligation in the maximum principal amount of
$3,000,000 for the purpose of paying contractual obligations of the City to be incurred for
making permanent public improvements and for other public purposes, to-wit: (1) designing,
constructing, renovating, improving, and equipping a community swimming pool and aquatic
facility of competition quality, (2) the purchase of materials, supplies, equipment, machinery,
landscaping, land, and rights-of-way for authorized needs and purposes relating to the
aforementioned capital improvements, and (3) the payment of professional services related to the
design, construction, project management, and financing of the aforementioned projects. This
notice has been duly published in a newspaper hereby found and determined to be of general
circulation in the City, once a week for two (2) consecutive weeks, the date of the first
publication of such notice being not less than thirty (30) days prior to the tentative date stated
therein for the passage of the ordinance authorizing the issuance of such certificates of
obligation; and
WHEREAS, no petition protesting the issuance of the certificates of obligation described
in this notice, signed by at least 5% of the qualified electors of the City, has been presented to or
filed with the City Secretary prior to the date tentatively set in such notice for the passage of this
ordinance; and
41851932.3 -2-
WHEREAS, the City Council hereby finds and determines that the issuance of the
certificates of obligation, under the terms herein specified, is in the best interests of the City and
its residents; and
WHEREAS, the City Council hereby finds and determines that certificates of obligation
in the principal amount of $___________ described in such notice should be issued and sold at
this time; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
THAT:
SECTION 1. Authorization - Designation - Principal Amount - Purpose. The
certificates of obligation of the City shall be and are hereby authorized to be issued in the
aggregate principal amount of _____________________________________ MILLION AND
NO/100 DOLLARS ($___________), to be designated and bear the title of “CITY OF
SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION, TAXABLE SERIES 2016B” (the Certificates), for the
purpose of paying contractual obligations of the City to be incurred for making permanent public
improvements and for other public purposes, to-wit: (1) designing, constructing, renovating,
improving, and equipping a community swimming pool and aquatic facility of competition
quality, (2) the purchase of materials, supplies, equipment, machinery, landscaping, land, and
rights-of-way for authorized needs and purposes relating to the aforementioned capital
improvements, and (3) the payment of professional services related to the design, construction,
project management, and financing of the aforementioned projects, pursuant to the authority
conferred by and in conformity with the laws of the State of Texas, particularly the Certificate of
Obligation Act of 1971, as amended, Texas Local Government Code Section 271.041 through
Section 271.064, Chapter 1502, as amended, Texas Government Code, and the City’s Home
Rule Charter.
SECTION 2. Fully Registered Obligations - Authorized Denominations - Stated
Maturities - Interest Rates – Certificate Date. The Certificates are issuable in fully registered
form only; shall be dated August 1, 2016 (the Certificate Date) and shall be issued in
denominations of $5,000 or any integral multiple (within a Stated Maturity) thereof, and the
Certificates shall become due and payable on February 1 in each of the years and in principal
amounts (the Stated Maturities) and bear interest on the unpaid principal amounts from the
Certificate Date, or from the most recent Interest Payment Date (hereinafter defined) to which
interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the
per annum rates, while Outstanding, in accordance with the following schedule:
Years of
Stated Maturity
Principal
Amounts ($)
Interest
Rates (%)
2017
2018
2019
2020
2021
41851932.3 -3-
Years of
Stated Maturity
Principal
Amounts ($)
Interest
Rates (%)
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
The Certificates shall bear interest on the unpaid principal amounts from the Certificate
Date, or from the most recent Interest Payment Date (hereinafter defined) to which interest has
been paid or duly provided for, to Stated Maturity or prior redemption, while Outstanding, at the
rates per annum shown in the above schedule (calculated on the basis of a 360-day year of
twelve 30-day months). Interest on the Certificates shall be payable on February 1 and August 1
in each year (each, an Interest Payment Date), commencing February 1, 2017.
SECTION 3. Payment of Certificates - Paying Agent/Registrar. The principal of,
premium, if any, and interest on the Certificates, due and payable by reason of Stated Maturity,
redemption, or otherwise, shall be payable in any coin or currency of the United States of
America which at the time of payment is legal tender for the payment of public and private debts,
and such payment of principal of, premium if any, and interest on the Certificates shall be
without exchange or collection charges to the Holder (hereinafter defined) of the Certificates.
The selection and appointment of BOKF, NA, Austin, Texas (the
Paying Agent/Registrar) to serve as the initial Paying Agent/Registrar, for the Certificates is
hereby approved and confirmed, and the City agrees and covenants to cause to be kept and
maintained at the corporate trust office of the Paying Agent/Registrar books and records (the
Security Register) for the registration, payment and transfer of the Certificates, all as provided
herein, in accordance with the terms and provisions of a Paying Agent/Registrar Agreement,
attached, in substantially final form, as Exhibit A hereto, and such reasonable rules and
regulations as the Paying Agent/Registrar and City may prescribe. The City covenants to
maintain and provide a Paying Agent/Registrar at all times while the Certificates are
Outstanding, and any successor Paying Agent/Registrar shall be (i) a national or state banking
institution or (ii) an association or a corporation organized and doing business under the laws of
the United States of America or of any state, authorized under such laws to exercise trust powers.
41851932.3 -4-
Such Paying Agent/Registrar shall be subject to supervision or examination by federal or state
authority and authorized by law to serve as a Paying Agent/Registrar.
The City reserves the right to appoint a successor Paying Agent/Registrar upon providing
the previous Paying Agent/Registrar with a certified copy of a resolution or ordinance
terminating such agency. Additionally, the City agrees to promptly cause a written notice of this
substitution to be sent to each Holder of the Certificates by United States mail, first-class postage
prepaid, which notice shall also give the address of the new Paying Agent/Registrar.
Principal of, premium, if any, and interest on the Certificates, due and payable by reason
of Stated Maturity, redemption, or otherwise, shall be payable only to the registered owner of the
Certificates appearing on the Security Register (the Holder or Holders) maintained on behalf of
the City by the Paying Agent/Registrar as hereinafter provided (i) on the Record Date
(hereinafter defined) for purposes of payment of interest thereon, (ii) on the date of surrender of
the Certificates for purposes of receiving payment of principal thereof upon redemption of the
Certificates or at the Certificates’ Stated Maturity, and (iii) on any other date for any other
purpose. The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder
as the owner of a Certificate for purposes of receiving payment and all other purposes
whatsoever, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be
affected by notice to the contrary.
Principal of and premium, if any, on the Certificates shall be payable only upon
presentation and surrender of the Certificates to the Paying Agent/Registrar at its corporate trust
office. Interest on the Certificates shall be paid to the Holder whose name appears in the
Security Register at the close of business on the fifteenth day of the month next preceding an
Interest Payment Date for the Certificates (the Record Date) and shall be paid (i) by check sent
on or prior to the appropriate date of payment by United States mail, first-class postage prepaid,
by the Paying Agent/Registrar, to the address of the Holder appearing in the Security Register or
(ii) by such other method, acceptable to the Paying Agent/Registrar, requested in writing by the
Holder at the Holder’s risk and expense.
If the date for the payment of the principal of, premium, if any, or interest on the
Certificates shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions
in the city where the corporate trust office of the Paying Agent/Registrar is located are
authorized by law or executive order to close, then the date for such payment shall be the next
succeeding day which is not such a day. The payment on such date shall have the same force
and effect as if made on the original date any such payment on the Certificates was due.
In the event of a non-payment of interest on a scheduled payment date, and for thirty (30)
days thereafter, a new record date for such interest payment (a Special Record Date) will be
established by the Paying Agent/Registrar, if and when funds for the payment of such interest
have been received from the City. Notice of the Special Record Date and of the scheduled
payment date of the past due interest (the Special Payment Date - which shall be fifteen (15)
days after the Special Record Date) shall be sent at least five (5) business days prior to the
Special Record Date by United States mail, first-class postage prepaid, to the address of each
Holder of a Certificate appearing on the Security Register at the close of business on the last
business day next preceding the date of mailing of such notice.
41851932.3 -5-
SECTION 4. Redemption.
A. The Certificates stated to mature on February 1 20__, February 1, 20__, and
February 1, 20__ are referred to herein as the “Term Certificates”. The Term Certificates are
subject to mandatory sinking fund redemption prior to their stated maturities from money
required to be deposited in the Certificate Fund for such purpose and shall be redeemed in part,
by lot or other customary method, at the principal amount thereof plus accrued interest to the
date of redemption in the following principal amounts on February 1 in each of the years as set
forth below:
Term Certificates
Stated to Mature
on February 1, 20
Term Certificates
Stated to Mature
on February 1, 20
Year
Principal
Amount ($) Year
Principal
Amount ($)
* *
*Payable at Stated Maturity.
Term Certificates
Stated to Mature
on February 1, 20
Year
Principal
Amount ($)
*
*Payable at Stated Maturity.
The principal amount of a Term Certificate required to be redeemed pursuant to the
operation of such mandatory redemption provisions shall be reduced, at the option of the City, by
the principal amount of any Term Certificates of such Stated Maturity which, at least 45 days
prior to the mandatory redemption date (1) shall have been defeased or acquired by the City and
delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and
canceled by the Paying Agent/Registrar at the request of the City, or (3) shall have been
redeemed pursuant to the optional redemption provisions set forth below and not theretofore
credited against a mandatory redemption requirement.
B. Optional Redemption. The Certificates having Stated Maturities on and after
February 1, 2027 shall be subject to redemption prior to Stated Maturity, at the option of the
City, on February 1, 2026, or on any date thereafter, as a whole or in part, in principal amounts
41851932.3 -6-
of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and
by lot by the Paying Agent/Registrar), at the redemption price of par plus accrued interest to the
date of redemption.
C. Exercise of Redemption Option. At least forty-five (45) days prior to a date set
for the redemption of Certificates (unless a shorter notification period shall be satisfactory to the
Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of its decision to
exercise the right to redeem Certificates, the principal amount of each Stated Maturity to be
redeemed, and the date set for the redemption thereof. The decision of the City to exercise the
right to redeem Certificates shall be entered in the minutes of the governing body of the City.
D. Selection of Certificates for Redemption. If less than all Outstanding Certificates
of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar
shall select at random and by lot the Certificates to be redeemed, provided that if less than the
entire principal amount of a Certificate is to be redeemed, the Paying Agent/Registrar shall treat
such Certificate then subject to redemption as representing the number of Certificates
Outstanding which is obtained by dividing the principal amount of such Certificate by $5,000.
E. Notice of Redemption. Not less than thirty (30) days prior to a redemption date
for the Certificates, a notice of redemption shall be sent by United States mail, first-class postage
prepaid, in the name of the City and at the City’s expense, by the Paying Agent/Registrar to each
Holder of a Certificate to be redeemed, in whole or in part, at the address of the Holder appearing
on the Security Register at the close of business on the business day next preceding the date of
mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to
have been duly given irrespective of whether received by the Holder.
All notices of redemption shall (i) specify the date of redemption for the Certificates,
(ii) identify the Certificates to be redeemed and, in the case of a portion of the principal amount
to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv)
state that the Certificates, or the portion of the principal amount thereof to be redeemed, shall
become due and payable on the redemption date specified, and the interest thereon, or on the
portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the
redemption date, and (v) specify that payment of the redemption price for the Certificates, or the
principal amount thereof to be redeemed, shall be made at the corporate trust office of the Paying
Agent/Registrar only upon presentation and surrender thereof by the Holder.
If a Certificate is subject by its terms to redemption and has been called for redemption
and notice of redemption thereof has been duly given or waived as herein provided, such
Certificate (or the principal amount thereof to be redeemed) so called for redemption shall
become due and payable, and if money sufficient for the payment of such Certificates (or of the
principal amount thereof to be redeemed) at the then applicable redemption price is held for the
purpose of such payment by the Paying Agent/Registrar, then on the redemption date designated
in such notice, interest on the Certificates (or the principal amount thereof to be redeemed) called
for redemption shall cease to accrue and such Certificates shall not be deemed to be Outstanding
in accordance with the provisions of this Ordinance. This notice may also be published once in a
financial publication, journal, or reporter of general circulation among securities dealers in the
41851932.3 -7-
City of New York, New York (including, but not limited to, The Bond Buyer and The Wall Street
Journal), or in the State of Texas (including, but not limited to, The Texas Bond Reporter).
F. Transfer/Exchange of Certificates. Neither the City nor the Paying
Agent/Registrar shall be required (1) to transfer or exchange any Certificate during a period
beginning forty-five (45) days prior to the date fixed for redemption of the Certificates or (2) to
transfer or exchange any Certificate selected for redemption, provided, however, such limitation
of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance of a
Certificate which is subject to redemption in part.
SECTION 5. Execution - Registration. The Certificates shall be executed on behalf of
the City by its Mayor or Mayor Pro Tem under its seal reproduced or impressed thereon and
attested by its City Secretary. The signature of either of said officers on the Certificates may be
manual or facsimile. Certificates bearing the manual or facsimile signatures of individuals who
were, at the time of the Certificate Date, the proper officers of the City shall bind the City,
notwithstanding that such individuals or either of them shall cease to hold such offices prior to
the delivery of the Certificates to the Purchasers (hereinafter defined), all as authorized and
provided in Chapter 1201, as amended, Texas Government Code.
No Certificate shall be entitled to any right or benefit under this Ordinance, or be valid or
obligatory for any purpose, unless there appears on such Certificate either a certificate of
registration substantially in the form provided in Section 8C, executed by the Comptroller of
Public Accounts of the State of Texas or his duly authorized agent by manual signature, or a
certificate of registration substantially in the form provided in Section 8D, executed by the
Paying Agent/Registrar by manual signature, and either such certificate upon any Certificate
shall be conclusive evidence, and the only evidence, that such Certificate has been duly certified
or registered and delivered.
SECTION 6. Registration - Transfer - Exchange of Certificates - Predecessor
Certificates. The Paying Agent/Registrar shall obtain, record, and maintain in the Security
Register the name and address of every owner of the Certificates, or if appropriate, the nominee
thereof. Any Certificate may, in accordance with its terms and the terms hereof, be transferred
or exchanged for Certificates of other authorized denominations upon the Security Register by
the Holder, in person or by his duly authorized agent, upon surrender of such Certificate to the
Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or
request for exchange duly executed by the Holder or by his duly authorized agent, in form
satisfactory to the Paying Agent/Registrar.
Upon surrender for transfer of any Certificate at the corporate trust office of the Paying
Agent/Registrar, the City shall execute and the Paying Agent/Registrar shall register and deliver,
in the name of the designated transferee or transferees, one or more new Certificates of
authorized denomination and having the same Stated Maturity and of a like interest rate and
aggregate principal amount as the Certificate or Certificates surrendered for transfer.
At the option of the Holder, Certificates may be exchanged for other Certificates of
authorized denominations and having the same Stated Maturity, bearing the same rate of interest
and of like aggregate principal amount as the Certificates surrendered for exchange upon
41851932.3 -8-
surrender of the Certificates to be exchanged at the corporate trust office of the Paying
Agent/Registrar. Whenever any Certificates are so surrendered for exchange, the City shall
execute, and the Paying Agent/Registrar shall register and deliver, the Certificates to the Holder
requesting the exchange.
All Certificates issued upon any transfer or exchange of Certificates shall be delivered at
the corporate trust office of the Paying Agent/Registrar, or be sent by registered mail to the
Holder at his request, risk, and expense, and upon the delivery thereof, the same shall be the
valid and binding obligations of the City, evidencing the same obligation to pay, and entitled to
the same benefits under this Ordinance, as the Certificates surrendered upon such transfer or
exchange.
All transfers or exchanges of Certificates pursuant to this Section shall be made without
expense or service charge to the Holder, except as otherwise herein provided, and except that the
Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange
of any tax or other governmental charges required to be paid with respect to such transfer or
exchange.
Certificates canceled by reason of an exchange or transfer pursuant to the provisions
hereof are hereby defined to be Predecessor Certificates, evidencing all or a portion, as the case
may be, of the same debt evidenced by the new Certificate or Certificates registered and
delivered in the exchange or transfer therefor. Additionally, the term Predecessor Certificates
shall include any Certificate registered and delivered pursuant to Section 25 in lieu of a
mutilated, lost, destroyed, or stolen Certificate which shall be deemed to evidence the same
obligation as the mutilated, lost, destroyed, or stolen Certificate.
SECTION 7. Initial Certificate. The Certificates herein authorized shall be issued
initially either (i) as a single fully registered Certificate in the total principal amount of
$___________ with principal installments to become due and payable as provided in Section 2
and numbered T-1, or (ii) as one (1) fully registered Certificate for each year of Stated Maturity
in the applicable principal amount and denomination and to be numbered consecutively from T-1
and upward (the Initial Certificate) and, in either case, the Initial Certificate shall be registered in
the name of the Purchasers or the designee thereof. The Initial Certificate shall be the
Certificates submitted to the Office of the Attorney General of the State of Texas for approval,
certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas
and delivered to the Purchasers. Any time after the delivery of the Initial Certificate to the
Purchasers, the Paying Agent/Registrar, pursuant to written instructions from the Purchasers or
their designee, shall cancel the Initial Certificate delivered hereunder and exchange therefor
definitive Certificates of authorized denominations, Stated Maturities, principal amounts and
bearing applicable interest rates on the unpaid principal amounts from the Certificate Date, or
from the most recent Interest Payment Date to which interest has been paid or duly provided for,
to Stated Maturity, and shall be lettered “R” and numbered consecutively from one (1) upward
for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to
and in accordance with such written instructions from the Purchasers, or the designee thereof,
and such other information and documentation as the Paying Agent/Registrar may reasonably
require.
41851932.3 -9-
SECTION 8. Forms.
A. Forms Generally. The Certificates, the Registration Certificate of the Comptroller
of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar,
and the form of Assignment to be printed on each of the Certificates shall be substantially in the
forms set forth in this Section with such appropriate insertions, omissions, substitutions, and
other variations as are permitted or required by this Ordinance and may have such letters,
numbers, or other marks of identification (including insurance legends in the event the
Certificates, or any Stated Maturities thereof, are insured, and any reproduction of an opinion of
Bond Counsel (hereinafter referenced)) and identifying numbers and letters of the Committee on
Uniform Securities Identification Procedures of the American Bankers Association) and such
legends and endorsements (including any reproduction of an opinion of counsel) thereon as may,
consistent herewith, be established by the City or determined by the officers executing the
Certificates as evidenced by their execution thereof. Any portion of the text of any Certificate
may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the
Certificate.
The definitive Certificates shall be printed, lithographed, or engraved, produced by any
combination of these methods, or produced in any other similar manner, all as determined by the
officers executing the Certificates as evidenced by their execution thereof, but the Initial
Certificate submitted to the Attorney General of the State of Texas may be typewritten or
photocopied or otherwise reproduced.
[The remainder of this page intentionally left blank.]
41851932.3 -10-
B. Form of Definitive Certificate.
REGISTERED
REGISTERED PRINCIPAL AMOUNT
NO. _________ $_____________
United States of America
State of Texas
Counties of Guadalupe, Comal, and Bexar
CITY OF SCHERTZ, TEXAS
COMBINATION TAX AND LIMITED PLEDGE REVENUE
CERTIFICATE OF OBLIGATION, TAXABLE SERIES 2016B
Certificate Date: Interest Rate: Stated Maturity: CUSIP No.
August 1, 2016
REGISTERED OWNER: _________________________________________________________
PRINCIPAL AMOUNT: _________________________________________________________
The City of Schertz, Texas (the City), a body corporate and municipal corporation in the
Counties of Guadalupe, Comal, and Bexar, State of Texas, for value received, acknowledges
itself indebted to and hereby promises to pay to the order of the Registered Owner specified
above, or the registered assigns thereof, on the Stated Maturity date specified above, the
Principal Amount specified above (or so much thereof as shall not have been paid upon prior
redemption) and to pay interest on the unpaid Principal Amount hereof from the Certificate Date,
or from the most recent Interest Payment Date (hereinafter defined) to which interest has been
paid or duly provided for until such Principal Amount has become due and payment thereof has
been made or duly provided for, to the earlier of redemption or Stated Maturity, while
Outstanding, at the per annum rate of interest specified above computed on the basis of a 360-
day year of twelve 30-day months; such interest being payable on February 1 and August 1 of
each year (each, an Interest Payment Date) commencing February 1, 2017.
Principal and premium, if any, of this Certificate shall be payable to the Registered
Owner hereof (the Holder), upon presentation and surrender, at the corporate trust office of the
Paying Agent/Registrar executing the registration certificate appearing hereon or a successor
thereof. Interest shall be payable to the Holder of this Certificate (or one or more Predecessor
Certificates, as defined in the Ordinance hereinafter referenced) whose name appears on the
Security Register maintained by the Paying Agent/Registrar at the close of business on the
Record Date, which is the fifteenth day of the month next preceding each Interest Payment Date.
All payments of principal of and interest on this Certificate shall be in any coin or currency of
the United States of America which at the time of payment is legal tender for the payment of
public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on
or prior to the appropriate date of payment by United States mail, first-class postage prepaid, to
the Holder hereof at the address appearing in the Security Register or by such other method,
acceptable to the Paying Agent/Registrar, requested by the Holder hereof at the Holder’s risk and
expense.
41851932.3 -11-
This Certificate is one of the series specified in its title issued in the aggregate principal
amount of $_______________ (the Certificates) pursuant to an Ordinance adopted by the
governing body of the City (the Ordinance), for the purpose of paying contractual obligations of
the City to be incurred for making permanent public improvements and for other public
purposes, to-wit: (1) designing, constructing, renovating, improving, and equipping a
community swimming pool and aquatic facility of competition quality, (2) the purchase of
materials, supplies, equipment, machinery, landscaping, land, and rights-of-way for authorized
needs and purposes relating to the aforementioned capital improvements, and (3) the payment of
professional services related to the design, construction, project management, and financing of
the aforementioned projects, under and in strict conformity with the laws of the State of Texas,
particularly Chapter 1502, as amended, Texas Government Code, the Certificate of Obligation
Act of 1971, as amended, Texas Local Government Code, Section 271.041 through 271.064, and
the City’s Home Rule Charter.
The Certificates stated to mature on February 1 20__, February 1, 20__, and February 1,
20__ are referred to herein as the “Term Certificates”. The Term Certificates are subject to
mandatory sinking fund redemption prior to their stated maturities from money required to be
deposited in the Certificate Fund for such purpose and shall be redeemed in part, by lot or other
customary method, at the principal amount thereof plus accrued interest to the date of
redemption in the following principal amounts on February 1 in each of the years as set forth
below:
Term Certificates
Stated to Mature
on February 1, 20
Term Certificates
Stated to Mature
on February 1, 20
Year
Principal
Amount ($) Year
Principal
Amount ($)
* *
*Payable at Stated Maturity.
Term Certificates
Stated to Mature
on February 1, 20
Year
Principal
Amount ($)
*
*Payable at Stated Maturity.
The principal amount of a Term Certificate required to be redeemed pursuant to the
operation of such mandatory redemption provisions shall be reduced, at the option of the City, by
41851932.3 -12-
the principal amount of any Term Certificates of such Stated Maturity which, at least 45 days
prior to the mandatory redemption date (1) shall have been defeased or acquired by the City and
delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and
canceled by the Paying Agent/Registrar at the request of the City, or (3) shall have been
redeemed pursuant to the optional redemption provisions set forth below and not theretofore
credited against a mandatory redemption requirement.
As provided in the Ordinance, the Certificates having Stated Maturities on and after
February 1, 2027 shall be subject to redemption prior to Stated Maturity, at the option of the
City, on February 1, 2026, or on any date thereafter, as a whole or in part, in principal amounts
of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and
by lot by the Paying Agent/Registrar), at the redemption price of par plus accrued interest to the
date of redemption; provided, however, that at least thirty (30) days prior written notice shall be
sent to the Holder of the Certificates to be redeemed by United States mail, first-class postage
prepaid, and subject to the terms and provisions relating thereto contained in the Ordinance. If
this Certificate is subject to redemption prior to Stated Maturity and is in a denomination in
excess of $5,000, portions of the principal sum hereof in installments of $5,000 or any integral
multiple thereof may be redeemed, and, if less than all of the principal sum hereof is to be
redeemed, there shall be issued, without charge therefor, to the Holder hereof, upon the surrender
of this Certificate to the Paying Agent/Registrar at its corporate trust office, a new Certificate or
Certificates of like Stated Maturity and interest rate in any authorized denominations provided in
the Ordinance for the then unredeemed balance of the principal sum hereof.
If this Certificate (or any portion of the principal sum hereof) shall have been duly called
for redemption and notice of such redemption has been duly given, then upon such redemption
date this Certificate (or the portion of the principal sum hereof to be redeemed) shall become due
and payable, and, if the money for the payment of the redemption price, and the interest accrued
on the principal amount to be redeemed to the date of redemption is held for the purpose of such
payment by the Paying Agent/Registrar, interest shall cease to accrue and be payable hereon
from and after the redemption date on the principal amount hereof to be redeemed. If this
Certificate is called for redemption, in whole or in part, the City or the Paying Agent/Registrar
shall not be required to issue, transfer, or exchange this Certificate within forty-five (45) days of
the date fixed for redemption; provided, however, such limitation of transfer shall not be
applicable to an exchange by the Holder of the unredeemed balance hereof in the event of its
redemption in part.
The Certificates of this series are payable from the proceeds of an ad valorem tax levied
upon all taxable property within the City, within the limitations prescribed by law, and are
further payable from and secured by a lien on and pledge of the Pledged Revenues (identified
and defined in the Ordinance), being a limited amount of the Net Revenues derived from the
operation of the City’s combined utility system (the System), such lien on and pledge of the
limited amount of Net Revenues being subordinate and inferior to the lien on and pledge of such
Net Revenues securing payment of any Prior Lien Obligations, Junior Lien Obligations, or
Subordinate Lien Obligations hereafter issued by the City. The City has previously authorized
the issuance of the currently outstanding Limited Pledge Obligations (identified and defined in
the Ordinance) that are payable, in part, from and secured by a lien on and pledge of a limited
amount of the Net Revenues of the System in the manner and as described in the ordinances
41851932.3 -13-
authorizing the issuance of the currently outstanding Limited Pledge Obligations. In the
Ordinance, the City reserves and retains the right to issue Prior Lien Obligations, Junior Lien
Obligations, Subordinate Lien Obligations, and Additional Limited Pledge Obligations (all as
identified and defined in the Ordinance), while the Certificates are Outstanding, without
limitation as to principal amount but subject to any terms, conditions or restrictions as may be
applicable thereto under law or otherwise.
Reference is hereby made to the Ordinance, a copy of which is on file in the corporate
trust office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by his
acceptance hereof hereby assents, for definitions of terms; the description of and the nature and
extent of the tax levied and the revenues pledged for the payment of the Certificates; the terms
and conditions under which the City may issue Prior Lien Obligations, Junior Lien Obligations,
Subordinate Lien Obligations, and Additional Limited Pledge Obligations; the terms and
conditions relating to the transfer or exchange of the Certificates; the conditions upon which the
Ordinance may be amended or supplemented with or without the consent of the Holder; the
rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and
provisions upon which this Certificate may be redeemed or discharged at or prior to the Stated
Maturity thereof, and deemed to be no longer Outstanding thereunder; and for the other terms
and provisions specified in the Ordinance. Capitalized terms used herein have the same meanings
assigned in the Ordinance.
This Certificate, subject to certain limitations contained in the Ordinance, may be
transferred on the Security Register upon presentation and surrender at the corporate trust office
of the Paying Agent/Registrar, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Paying Agent/Registrar duly executed by the Holder hereof,
or his duly authorized agent, and thereupon one or more new fully registered Certificates of the
same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the
same aggregate principal amount will be issued to the designated transferee or transferees.
The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder
hereof whose name appears on the Security Register (i) on the Record Date as the owner hereof
for purposes of receiving payment of interest hereon, (ii) on the date of surrender of this
Certificate as the owner hereof for purposes of receiving payment of principal hereof at its Stated
Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner hereof for
all other purposes, and neither the City nor the Paying Agent/Registrar, or any such agent of
either, shall be affected by notice to the contrary. In the event of a non-payment of interest on a
scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest
payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when
funds for the payment of such interest have been received from the City. Notice of the Special
Record Date and of the scheduled payment date of the past due interest (the Special Payment
Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five
(5) business days prior to the Special Record Date by United States mail, first-class postage
prepaid, to the address of each Holder appearing on the Security Register at the close of business
on the last business day next preceding the date of mailing of such notice.
It is hereby certified, covenanted, and represented that all acts, conditions, and things
required to be performed, exist, and be done precedent to the issuance of this Certificate in order
41851932.3 -14-
to render the same a legal, valid, and binding obligation of the City have been performed, exist,
and have been done, in regular and due time, form, and manner, as required by the laws of the
State of Texas and the Ordinance, and that issuance of the Certificates does not exceed any
constitutional or statutory limitation; and that due provision has been made for the payment of
the principal of, premium if any, and interest on the Certificates by the levy of a tax and
collection of Pledged Revenues as aforestated. In case any provision in this Certificate or any
application thereof shall be deemed invalid, illegal, or unenforceable, the validity, legality, and
enforceability of the remaining provisions and applications shall not in any way be affected or
impaired thereby. The terms and provisions of this Certificate and the Ordinance shall be
construed in accordance with and shall be governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the City has caused this Certificate to be duly executed under
its official seal.
CITY OF SCHERTZ, TEXAS
By _________________________________
Mayor
ATTEST:
____________________________________
City Secretary
(CITY SEAL)
41851932.3 -15-
C. *Form of Registration Certificate of Comptroller of Public Accounts to Appear on
Initial Certificate Only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER OF
PUBLIC ACCOUNTS
THE STATE OF TEXAS
§
§
§
§
REGISTER NO.
I HEREBY CERTIFY that this Certificate has been examined, certified as to validity and
approved by the Attorney General of the State of Texas, and duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this ____________________
____________________________________
Comptroller of Public Accounts
of the State of Texas
(SEAL)
*NOTE TO PRINTER: Not to appear on printed Certificates.
D. Form of Certificate of Paying Agent/Registrar to Appear on Definitive
Certificates Only.
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Certificate has been duly issued under the provisions of the within-mentioned
Ordinance; the Certificate or Certificates of the above-entitled and designated series originally
delivered having been approved by the Attorney General of the State of Texas and registered by
the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar.
Registered this date:
____________________________________
BOKF, NA, AUSTIN, TEXAS, as Paying
Agent/Registrar
By: _______________________________
Authorized Signature
*NOTE TO PRINTER: Print on Definitive Certificates.
41851932.3 -16-
E. Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto
(Print or typewrite name, address, and zip code of transferee): ____________________________
______________________________________________________________________________
(Social Security or other identifying number): ________________________________________
the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
____________________attorney to transfer the within Certificate on the books kept for
registration thereof, with full power of substitution in the premises.
DATED: ____________________________
________________________________________________
NOTICE: The signature on this assignment must
correspond with the name of the registered owner as it
appears on the face of the within Certificate in every
particular.
Signature guaranteed:
____________________________________
F. The Initial Certificate shall be in the form set forth in paragraph B of this Section,
except that the form of a single fully registered Initial Certificate shall be modified as follows:
(i) immediately under the name of the Certificate the headings “Interest Rate and “Stated
Maturity shall both be completed “as shown below”;
(ii) the first two paragraphs shall read as follows:
Registered Owner: ______________________________________________________________
Principal Amount: ______________________________________________________________
The City of Schertz, Texas (the City), a body corporate and municipal corporation in the
Counties of Guadalupe, Comal, and Bexar, State of Texas, for value received, acknowledges
itself indebted to and hereby promises to pay to the order of the Registered Owner named above,
or the registered assigns thereof, the Principal Amount specified above stated to mature on the
first day of February in each of the years and in principal amounts and bearing interest at per
annum rates in accordance with the following schedule:
41851932.3 -17-
Years of
Stated Maturity
Principal
Amounts ($)
Interest
Rates (%)
(Information to be inserted
from schedule in Section 2 hereof)
(or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the
unpaid Principal Amounts hereof from the Certificate Date specified above, or from the most
recent Interest Payment Date (defined below) to which interest has been paid or duly provided
for until the Principal Amount has become due and payment thereof has been made or duly
provided for, to the earlier of redemption or Stated Maturity, at the per annum rates of interest
specified above, computed on the basis of a 360-day year of twelve 30-day months; such interest
being payable on February 1 and August 1 of each year (each, an Interest Payment Date),
commencing February 1, 2017.
Principal of this Certificate shall be payable to the Registered Owner hereof (the Holder),
upon its presentation and surrender, to Stated Maturity or prior redemption, while Outstanding, at
the corporate trust office of BOKF, NA, Austin, Texas (the Paying Agent/Registrar). Interest
shall be payable to the Holder of this Certificate whose name appears on the Security Register
maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is
the fifteenth day of the month next preceding each Interest Payment Date. All payments of
principal of and interest on this Certificate shall be in any coin or currency of the United States
of America which at the time of payment is legal tender for the payment of public and private
debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the
appropriate date of payment by United States mail, first-class postage prepaid, to the Holder
hereof at the address appearing in the Security Register or by such other method, acceptable to
the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder hereof.
G. Insurance Legend. If bond insurance is obtained by the City or the Purchasers for
the Certificates, the Definitive Certificates and the Initial Certificate shall bear an appropriate
legend as provided by the insurer.
SECTION 9. Definitions. For all purposes of this Ordinance (as defined below), except
as otherwise expressly provided or unless the context otherwise requires: (i) the terms defined in
this Section have the meanings assigned to them in this Section, and certain terms used in
Sections 27 and 44 of this Ordinance have the meanings assigned to them in Sections 27 and 44
of this Ordinance, and all such terms, include the plural as well as the singular; (ii) all references
in this Ordinance to designated “Sections” and other subdivisions are to the designated Sections
and other subdivisions of this Ordinance as originally adopted; and (iii) the words “herein”,
“hereof’, and “hereunder” and other words of similar import refer to this Ordinance as a whole
and not to any particular Section or other subdivision.
A. The term Additional Limited Pledge Obligations shall mean (i) any bonds, notes,
warrants, certificates of obligation or other evidences of indebtedness hereafter issued by the
City payable in part from a limited pledge of and lien on Net Revenues of the System being a
lien on and pledge of Net Revenues that is subordinate and inferior to the lien thereon and pledge
thereof securing the payment of any Prior Lien Obligations, Junior Lien Obligations, or
41851932.3 -18-
Subordinate Lien Obligations hereafter issued by the City, which pledge of revenues is limited
pursuant to Section 1502.052, as amended, Texas Government Code, all as further provided in
Section 20 of this Ordinance, and (ii) any obligations issued to refund the foregoing as
determined by the City Council in accordance with any applicable law.
B. The term Authorized Officials shall mean the Mayor, the Mayor Pro Tem, the City
Manager, the Director of Finance, and/or the City Secretary.
C. The term Certificates shall mean the $____________ “CITY OF SCHERTZ,
TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF
OBLIGATION, TAXABLE SERIES 2016B” authorized by this Ordinance.
D. The term Certificate Fund shall mean the special Fund created and established by
the provisions of Section 10 of this Ordinance.
E. The term City shall mean the City of Schertz, located in Guadalupe, Comal, and
Bexar Counties, Texas and, where appropriate, the City Council of the City.
F. The term Closing Date shall mean the date of physical delivery of the Initial
Certificates in exchange for the payment of the agreed purchase price for the Certificates.
G. The term Collection Date shall mean, when reference is being made to the levy
and collection of annual ad valorem taxes, the date the annual ad valorem taxes levied each year
by the City become delinquent.
H. The term Debt Service Requirements shall mean, as of any particular date of
computation, with respect to any obligations and with respect to any period, the aggregate of the
amounts to be paid or set aside by the City as of such date or in such period for the payment of
the principal of, premium, if any, and interest (to the extent not capitalized) on such obligations;
assuming, in the case of obligations without a fixed numerical rate, that such obligations bear
interest at the maximum rate permitted by the terms thereof and further assuming in the case of
obligations required to be redeemed or prepaid as to principal prior to Stated Maturity, the
principal amounts thereof will be redeemed prior to Stated Maturity in accordance with the
mandatory redemption provisions applicable thereto.
I. The term Depository shall mean an official depository bank of the City.
J. The term Fiscal Year shall mean the annual financial accounting period for the
System now ending on September 30th of each year; provided, however, the City Council may
change such annual financial accounting period to end on another date if such change is found
and determined to be necessary for accounting purposes or is required by applicable law.
K. The term Government Securities, as used herein, shall mean (i) direct noncallable
obligations of the United States, including obligations that are unconditionally guaranteed by, the
United States of America; (ii) noncallable obligations of an agency or instrumentality of the
United States, including obligations that are unconditionally guaranteed or insured by the agency
or instrumentality and that, on the date the governing body of the issuer adopts or approves the
proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a
41851932.3 -19-
nationally recognized investment rating firm not less than “AAA” or its equivalent;
(iii) noncallable obligations of a state or an agency or a county, municipality, or other political
subdivision of a state that have been refunded and that, on the date the governing body of the
issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated
as to investment quality by a nationally recognized investment rating firm not less than “AAA”
or its equivalent, or (iv) any additional securities and obligations hereafter authorized by the laws
of the State of Texas as eligible for use to accomplish the discharge of obligations such as the
Certificates.
L. The term Gross Revenues for any period shall mean all revenue during such
period in respect or on account of the operation or ownership of the System, excluding
refundable meter deposits, restricted gifts, and grants in aid of construction, but including
earnings and income derived from the investment or deposit of money in any special fund or
account (except the Certificate Fund) created and established for the payment or security of the
Certificates.
M. The term Holder or Holders shall mean the registered owner, whose name
appears in the Security Register, for any Certificate.
N. The term Interest Payment Date shall mean the date interest is payable on the
Certificates, being February 1 and August 1 of each year, commencing February 1, 2017, while
any of the Certificates remain Outstanding.
O. The term Junior Lien Obligations shall mean (i) any bonds, notes, warrants,
certificates of obligation or any similar obligations hereafter issued by the City that are payable
wholly or in part from and equally and ratably secured by a lien on and pledge of the Net
Revenues of the System, such pledge being junior and inferior to the lien on and pledge of the
Net Revenues of the System that may be pledged to the payment of any Prior Lien Obligations
hereafter issued by the City, but prior and superior to the lien on and pledge of the Net Revenues
of the System that are or will be pledged to the payment of the currently outstanding Limited
Pledge Obligations, and the Certificates, or any Subordinate Lien Obligations or Additional
Limited Pledge Obligations hereafter issued by the City all as further provided in Section 20 of
this Ordinance and (ii) obligations hereafter issued to refund any of the foregoing that are
payable from and equally and ratably secured by a junior and inferior lien on and pledge of the
Net Revenues as determined by the City Council in accordance with any applicable law.
P. The term Limited Pledge Obligations shall mean (i) the Certificates and the
outstanding and unpaid obligations of the City that are payable, in part, from and secured by a
subordinate and inferior lien on and pledge of a limited amount of the Net Revenues of the
System and designated as follows:
(1) “City of Schertz, Texas Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Series 2007”, dated January 1, 2007, originally issued in the
aggregate principal amount of $9,915,000;
41851932.3 -20-
(2) “City of Schertz, Texas Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Series 2013”, dated September 1, 2013, originally issued in the
aggregate principal amount of $4,965,000; and
(3) “City of Schertz, Texas Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Series 2016A”, dated August 1, 2016, originally issued in the
aggregate principal amount of $______________;
(ii) obligations hereafter issued to refund any of the foregoing as determined by the City
Council in accordance with any applicable law.
Q. The term Maintenance and Operating Expenses shall mean all current expenses
of operating and maintaining the System not paid from the proceeds of the Certificates, including
(1) the cost of all salaries, labor, materials, repairs, and extensions necessary to render efficient
service, but only if, in the case of repairs and extensions, they are, in the judgment of the City
Council (reasonably and fairly exercised), necessary to maintain operation of the System and
render adequate service to the City and the inhabitants thereof, or are necessary to meet some
physical accident or condition which would otherwise impair obligations payable from Net
Revenues, (2) payments to pension, retirement, health, hospitalization, and other employee
benefit funds for employees of the City engaged in the operation or maintenance of the System,
(3) payments under contracts for the purchase of water supply, treatment of sewage, or other
materials, goods, or services for the System to the extent authorized by law and the provisions of
such contract, (4) payments to auditors, attorneys, and other consultants incurred in complying
with the obligations of the City hereunder, and (5) any legal liability of the City arising out of the
operation, maintenance, or condition of the System, but excluding any allowance for
depreciation, property retirement, depletion, obsolescence, and other items not requiring an
outlay of cash and any interest on the Certificates or other bonds, notes, warrants, or similar
obligations of the City payable from Net Revenues.
R. The term Net Revenues for any period shall mean the Gross Revenues of the
System less the Maintenance and Operating Expenses of the System.
S. The term Ordinance shall mean this ordinance as finally passed and adopted by
the City Council of the City.
T. The term Outstanding when used in this Ordinance with respect to the Certificates
shall mean, as of the date of determination, all Certificates issued and delivered under this
Ordinance, except:
(1) those Certificates canceled by the Paying Agent/Registrar or delivered to
the Paying Agent/Registrar for cancellation;
(2) those Certificates for which payment has been duly provided by the City
in accordance with the provisions of Section 29 of this Ordinance; and
(3) those Certificates that have been mutilated, destroyed, lost, or stolen and
replacement Certificates have been registered and delivered in lieu thereof as provided in
Section 25 of this Ordinance.
41851932.3 -21-
U. The term Pledged Revenues shall mean, while the Certificates remain
Outstanding, an amount of Net Revenues not in excess of $1,000. The Pledged Revenues shall
be deposited, allocated, and expended in accordance with Section 10 of this Ordinance.
V. The term Pledged Revenue Amount shall mean the total amount, not to exceed
$1,000 while the Certificates are Outstanding, of Net Revenues that may be transferred in whole
or in part by the City in any given Fiscal Year (however, any amounts transferred prior to the
final maturity date of the Certificates may not exceed the total amount of $1,000) to the
Certificate Fund.
W. The term Prior Lien Obligations shall mean (i) any bonds, notes, warrants,
certificates of obligation or any similar obligations hereafter issued by the City that are payable
in whole or in part from and equally and ratably secured by a first and prior lien on and pledge of
the Net Revenues of the System, all as further provided in Section 20 of this Ordinance, and
(ii) any obligations hereafter issued to refund the foregoing if issued in a manner so as to be
payable from and equally and ratably secured by a first and prior lien on and pledge of the Net
Revenues of the System as determined by the City Council in accordance with any applicable
law.
X. The term Purchasers shall mean the initial purchaser or purchasers of the
Certificates named in Section 26 of this Ordinance.
Y. The term Stated Maturity shall mean the annual principal payments of the
Certificates payable on February 1 of each year the Certificates are Outstanding as set forth in
Section 2 of this Ordinance.
Z. The term Subordinate Lien Obligations shall mean (i) any bonds, notes, warrants,
certificates of obligation, or any similar obligations hereafter issued by the City that are payable,
in whole or in part, from and equally and ratably secured by a lien on and pledge of the Net
Revenues of the System, such pledge being subordinate and inferior to the lien on and pledge of
the Net Revenues of the System that may be pledged to the payment of any Prior Lien
Obligations or Junior Lien Obligations hereafter issued by the City, but prior and superior to the
lien on and pledge of the limited amount of the Net Revenues securing, in part, the payment of
the currently outstanding Limited Pledge Obligations and the Certificates or any Additional
Limited Pledge Obligations hereafter issued by the City, all as further provided in Section 20 of
this Ordinance and (ii) any obligations hereafter issued to refund any of the foregoing if issued in
a manner so as to be payable from and equally and ratably secured by a subordinate and inferior
lien on and pledge of the Net Revenues as determined by the City Council in accordance with
any applicable law.
AA. The term System shall mean all properties, facilities and plants currently owned,
operated, and maintained by the City for the supply, treatment, and transmission of treated
potable water, for the collection and treatment of wastewater, together will all future extensions,
improvements, replacements and additions thereto, whether situated within or without the limits
of the City and the City expressly reserves the right at its sole discretion to include additional
utility, telecommunications, technology, or similar enterprise services as components of the
System; provided, however, that notwithstanding the foregoing, and to the extent now or
41851932.3 -22-
hereafter authorized or permitted by law, the term System shall not mean to include facilities of
any kind which are declared not to be a part of the System and which are acquired or constructed
by or on behalf of the City with the proceeds from the issuance of Special Facilities Bonds,
which are hereby defined as being special revenue obligations of the City which are not payable
from Net Revenues but which are payable from and equally and ratably secured by other liens on
and pledges of any revenues, sources or payments, not pledged to the payment of the Bonds
Similarly Secured including, but not limited to, special contract revenues or payments received
from any other legal entity in connection with such facilities.
SECTION 10. Certificate Fund – Investments. For the purpose of paying the interest on
and to provide a sinking fund for the payment, redemption, and retirement of the Certificates,
there shall be and is hereby created a special fund to be designated “COMBINATION TAX
AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, TAXABLE
SERIES 2016B, INTEREST AND SINKING FUND” (the Certificate Fund), which fund shall
be kept and maintained at the Depository, and money deposited in the Certificate Fund shall be
used for no other purpose and shall be maintained as provided in Section 27. Authorized
Officials of the City are hereby authorized and directed to make withdrawals from the Certificate
Fund sufficient to pay the purchase price or the amount of principal of, premium, if any, and
interest on the Certificates as the same become due and payable and shall cause to be transferred
to the Paying Agent/Registrar from money on deposit in the Certificate Fund an amount
sufficient to pay the amount of principal and/or interest stated to mature on the Certificates, such
transfer of funds to the Paying Agent/Registrar to be made in such manner as will cause
immediately available funds to be deposited with the Paying Agent/Registrar on or before the
business day next preceding each interest and principal payment date for the Certificates.
The City, at its sole discretion, may deposit the Pledged Revenue Amount to the
Certificate Fund. The Pledged Revenue Amount, if deposited, shall be expended annually to pay
principal of and interest on the Certificates as the same become due and payable. This Pledged
Revenue Amount shall be accounted for and transferred to the Paying Agent/Registrar in
accordance with the provisions of the previous paragraph of this Section.
Pending the transfer of funds to the Paying Agent/Registrar, money deposited in any fund
created and established by this Ordinance may, at the option of the City, be placed in time
deposits, certificates of deposit, guaranteed investment contracts, or similar contractual
agreements, as permitted by the provisions of the Public Funds Investment Act, as amended,
Chapter 2256, Texas Government Code, secured (to the extent not insured by the Federal
Deposit Insurance Corporation) by obligations of the type hereinafter described, or be invested,
as authorized by any law, including investments held in book-entry form, in securities, including,
but not limited to, direct obligations of the United States of America, obligations guaranteed or
insured by the United States of America, which, in the opinion of the Attorney General of the
United States, are backed by its full faith and credit or represent its general obligations, or
invested in indirect obligations of the United States of America, including, but not limited to,
evidences of indebtedness issued, insured or guaranteed by such governmental agencies as the
Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home
Loan Banks, Government National Mortgage Association, Farmers Home Administration,
Federal Home Loan Mortgage Association, or Federal Housing Association; provided that all
such deposits and investments shall be made in such a manner that the money required to be
41851932.3 -23-
expended from such fund will be available at the proper time or times. All interest and income
derived from deposits and investments in any fund established pursuant to the provisions of this
Ordinance shall be credited to, and any losses debited to, such fund. All such investments shall
be sold promptly when necessary to prevent any default in connection with the Certificates.
SECTION 11. Tax Levy. To provide for the payment of the Debt Service Requirements
on the Certificates being (i) the interest on the Certificates and (ii) a sinking fund for their
redemption at Stated Maturity or a sinking fund of 2% (whichever amount shall be the greater),
there shall be and there is hereby levied for the current year and each succeeding year thereafter
while the Certificates or any interest thereon shall remain Outstanding, a sufficient tax, within
the limitations prescribed by law, on each one hundred dollars valuation of taxable property in
the City, adequate to pay such Debt Service Requirements, full allowance being made for
delinquencies and costs of collection; said tax shall be assessed and collected each year and
applied to the payment of the Debt Service Requirements, and the same shall not be diverted to
any other purpose. The taxes so levied and collected shall be paid into the Certificate Fund and
are thereafter pledged to the payment of the Certificates. The City Council hereby declares its
purpose and intent to provide and levy a tax legally and fully sufficient to pay such Debt Service
Requirements, it having been determined that the existing and available taxing authority of the
City for such purpose is adequate to permit a legally sufficient tax in consideration of all other
outstanding indebtedness and other obligations of the City.
The amount of taxes to be provided annually for the payment of the principal of and
interest on the Certificates shall be determined and accomplished in the following manner:
A. Prior to the date the City Council establishes the annual tax rate and passes an
ordinance levying ad valorem taxes each year, the City Council shall determine:
(1) the amount of Debt Service Requirements to become due and payable on
the Certificates between the Collection Date for the taxes then to be levied and the
Collection Date for the taxes to be levied during the next succeeding calendar year;
(2) the amount on deposit in the Certificate Fund after (a) deducting therefrom
the total amount of Debt Service Requirements to become due on Certificates prior to the
Collection Date for the ad valorem taxes to be levied and (b) adding thereto the amount
of the Pledged Revenues, if any, to be appropriated and allocated during such year to pay
such Debt Service Requirements, if any, prior to the Collection Date for the ad valorem
taxes to be levied; and
(3) the amount of Pledged Revenues, if any, to be appropriated and to be set
aside for the payment of the Debt Service Requirements on the Certificates between the
Collection Date for the taxes then to be levied and the Collection Date for the taxes to be
levied during the next succeeding Fiscal Year.
B. The amount of taxes to be levied annually each year to pay the Debt Service
Requirements on the Certificates shall be the amount established in paragraph (1) above less the
sum total of the amounts established in paragraphs (2) and (3), after taking into consideration
delinquencies and costs of collecting such annual taxes.
41851932.3 -24-
SECTION 12. Pledge of Revenues. The City hereby covenants and agrees that, subject
to (i) any prior lien on and pledge of the Net Revenues of the System to the payment and security
of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations hereafter
issued by the City and (ii) the lien on and pledge of a limited amount of the Net Revenues to the
payment and security of the currently outstanding Limited Pledge Obligations, the Pledged
Revenues are hereby irrevocably pledged to the payment of the principal of and interest on the
Certificates and the pledge of Pledged Revenues herein made for the payment of the Certificates
shall constitute a lien on the Pledged Revenues in accordance with the terms and provisions
hereof and be valid and binding without any physical delivery thereof or further act by the City.
SECTION 13. System Fund. The City hereby covenants and agrees that all Gross
Revenues derived from the operation of the System shall be kept separate and apart from all
other funds, accounts and money of the City and shall be deposited as collected into the “CITY
OF SCHERTZ, TEXAS UTILITY SYSTEM FUND” (the System Fund). All money deposited
in the System Fund shall be pledged and appropriated to the extent required for the following
purposes and in the order of priority shown:
• First: to the payment of the reasonable and proper Maintenance and Operating
Expenses of the System required by statute or ordinances authorizing the issuance
of any indebtedness of the City to be a first charge on and claim against the Gross
Revenues of the System;
• Second: To the payment of the amounts that must be deposited in the special
funds and accounts created and established for the payment, security, and benefit
of any Prior Lien Obligations hereafter issued by the City in accordance with the
terms and provisions of any ordinance authorizing their issuance;
• Third: To the payment of the amounts that must be deposited in the special funds
and accounts created and established for the payment, security, and benefit of any
Junior Lien Obligations hereafter issued by the City in accordance with the terms
and provisions of any ordinance authorizing their issuance;
• Fourth: To the payment of the amounts that must be deposited in the special
funds and accounts created and established for the payment, security, and benefit
of any Subordinate Lien Obligations hereafter issued by the City in accordance
with the terms and provisions of any ordinance authorizing their issuance; and
• Fifth: To the payment of the amounts that may be deposited in the special funds
and accounts established for the payment of the currently outstanding Limited
Pledge Obligations, including the Certificates, and any Additional Limited Pledge
Obligations hereafter issued by the City in accordance with the terms and
provisions of any ordinance authorizing their issuance.
Any Net Revenues remaining in the System Fund after satisfying the foregoing
payments, or making adequate and sufficient provision for the payment, security and benefit
thereof, may be appropriated and used for any other City purpose now or hereafter permitted by
law.
41851932.3 -25-
SECTION 14. Deposits to Certificate Fund – Surplus Certificate Proceeds. The City
hereby covenants and agrees to cause to be deposited in the Certificate Fund prior to a principal
and interest payment date for the Certificates, from the Pledged Revenues in the System Fund,
after the deduction of all payments required to be made to the special funds or accounts created
for the payment, security, and benefit of (i) any Prior Lien Obligations, Junior Lien Obligations,
or Subordinate Lien Obligations hereafter issued by the City and (ii) the currently outstanding
Limited Pledge Obligations, any amounts budgeted to be paid therefrom in such Fiscal Year.
Accrued interest received from the Purchasers of the Certificates shall be deposited to the
Certificate Fund and ad valorem taxes levied and collected for the benefit of the Certificates shall
be deposited to the Certificate Fund. In addition, any surplus proceeds, including investment
income therefrom, from the sale of the Certificates not expended for authorized purposes shall be
deposited in the Certificate Fund, and such amounts so deposited shall reduce the sums otherwise
required to be deposited in said fund from ad valorem taxes.
SECTION 15. Security of Funds. All money on deposit in the funds for which this
Ordinance makes provision (except any portion thereof as may be at any time properly invested
as provided herein) 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 money on deposit in such funds shall
be used only for the purposes permitted by this Ordinance.
SECTION 16. Maintenance of System - Insurance. The City covenants and agrees that
while the Certificates remain Outstanding it will maintain and operate the System with all
possible efficiency and maintain casualty and other insurance (including a system of self-
insurance) on the properties of the System and its operations of a kind and in such amounts
customarily carried by municipal corporations in the State of Texas engaged in a similar type of
business and that it will faithfully and punctually perform all duties with reference to the System
required by the laws of the State of Texas. All money received from losses under such insurance
policies, other than public liability policies, are held for the benefit of the holders of the
Certificates until and unless the proceeds are paid out in making good the loss or damage in
respect of which such proceeds are received, either by replacing the property destroyed or
repairing the property damaged, and adequate provision for making good such loss or damage
must be made within ninety (90) days after the date of loss. The payment of premiums for all
insurance policies required under the provisions hereof shall be considered Maintenance and
Operating Expenses. Nothing in this Ordinance shall be construed as requiring the City to
expend any funds which are derived from sources other than the operation of the System but
nothing herein shall be construed as preventing the City from doing so.
SECTION 17. Rates and Charges. The City hereby covenants and agrees with the
Holders of the Certificates that rates and charges for utility services afforded by the System will
be established and maintained to provide Gross Revenues sufficient at all times:
A. to pay, together with any other lawfully available funds, all operating,
maintenance, depreciation, replacement, betterment, and other costs incurred in the maintenance
and operation of the System, including, but not limited to, Maintenance and Operating Expenses;
provided, however, that the City expressly reserves the right to utilize other lawfully available
funds to pay the Maintenance and Operating Expenses;
41851932.3 -26-
B. to produce Net Revenues sufficient, together with any other lawfully available
funds, to pay (i) the interest on and principal of any Prior Lien Obligations hereafter issued by
the City as the same becomes due and payable and the amounts required to be deposited in any
special fund created and established for the payment, security, and benefit thereof; (ii) the
interest on and principal of any Junior Lien Obligations hereafter issued by the City as the same
becomes due and payable and the amounts required to be deposited in any special fund created
and established for the payment, security, and benefit thereof, (iii) the interest on and principal of
any Subordinate Lien Obligations hereafter issued by the City as the same becomes due and
payable and the amounts required to be deposited in any special fund created and established for
the payment, security, and benefit thereof, and (iv) the amounts that may be deposited in the
special funds established for the payment of the currently outstanding Limited Pledge
Obligations, the Certificates, or any Additional Limited Pledge Obligations hereafter issued by
the City; and
C. to pay other legally incurred indebtedness payable from the Net Revenues of the
System and/or secured by a lien on the System or the Net Revenues thereof.
SECTION 18. Records and Accounts - Annual Audit. The City further covenants and
agrees that so long as any of the Certificates remain Outstanding it will keep and maintain
separate and complete records and accounts pertaining to the operations of the System in which
complete and correct entries shall be made of all transactions relating thereto, as provided by
Chapter 1502, as amended, Texas Government Code, or other applicable law. The Holders of
the Certificates or any duly authorized agent or agents of the Holders shall have the right to
inspect the System and all properties comprising the same. The City further agrees that,
following the close of each Fiscal Year, it will cause an audit of such books and accounts to be
made by an independent firm of Certified Public Accountants. Expenses incurred in making the
annual audit of the operations of the System are to be regarded as Maintenance and Operating
Expenses.
SECTION 19. Remedies in Event of Default. In addition to all the rights and remedies
provided by the laws of the State of Texas, the City covenants and agrees particularly that in the
event the City (a) defaults in the payments to be made to the Certificate Fund, or (b) defaults in
the observance or performance of any other of the covenants, conditions, or obligations set forth
in this Ordinance, the Holders of any of the Certificates shall be entitled to seek a writ of
mandamus issued by a court of proper jurisdiction compelling and requiring the governing body
of the City and other officers of the City to observe and perform any covenant, condition, or
obligation prescribed in this Ordinance.
No delay or omission to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a waiver of any such default or
acquiescence therein, and every such right and power may be exercised from time to time and as
often as may be deemed expedient. The specific remedies herein provided shall be cumulative of
all other existing remedies and the specification of such remedies shall not be deemed to be
exclusive.
SECTION 20. Issuance of Prior Lien Obligations, Junior Lien Obligations, Subordinate
Lien Obligations, and Additional Limited Pledge Obligations. The City hereby expressly
41851932.3 -27-
reserves the right to hereafter issue bonds, notes, warrants, certificates of obligation, or similar
obligations, payable, wholly or in part, as appropriate, from and secured by a pledge of and lien
on the Net Revenues of the System with the following priorities, without limitation as to
principal amount, but subject to any terms, conditions, or restrictions applicable thereto under
existing ordinances, laws, or otherwise:
A. Prior Lien Obligations payable from and equally and ratably secured by a first and
prior lien on and pledge of the Net Revenues of the System;
B. Junior Lien Obligations payable from and equally and ratably secured by a lien on
and pledge of the Net Revenues that is junior and inferior to the lien on and pledge thereof
securing the payment of any Prior Lien Obligations hereafter issued by the City, but prior and
superior to the lien on and pledge of the Net Revenues securing, in part, the payment of the
currently outstanding Limited Pledge Obligations, the Certificates, and any Subordinate Lien
Obligations or Additional Limited Pledge Obligations hereafter issued by the City;
C. Subordinate Lien Obligations payable from and equally and ratably secured by a
lien on and pledge of the Net Revenues that is subordinate and inferior to the lien on and pledge
thereof securing the payment of any Prior Lien Obligations or Junior Lien Obligations hereafter
issued by the City, but prior and superior to the lien on and pledge of the Net Revenues securing,
in part, the payment of the currently outstanding Limited Pledge Obligations, the Certificates,
and any Additional Limited Pledge Obligations hereafter issued by the City; and
D. Additional Limited Pledge Obligations secured by a lien on and pledge of a
limited amount of the Net Revenues in accordance with the provisions of the following
paragraph.
Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations, if
issued, may be payable, in whole or in part, from Net Revenues (without impairment of the
obligation of contract with the holders of the currently outstanding Limited Pledge Obligations
and the Certificates) upon such terms and conditions as the City Council may determine.
Additional Limited Pledge Obligations, if issued and payable, in whole or in part, from Pledged
Revenues (defined in the same or similar terms as provided in Section 9 of this Ordinance or in
the ordinances authorizing the issuance of the currently outstanding Limited Pledge Obligations),
shall not in any event be construed to be payable from the Pledged Revenues authorized by this
Ordinance or in the ordinance authorizing the issuance of the currently outstanding Limited
Pledge Obligations to be budgeted and appropriated for the payment of the Certificates or the
ordinance authorizing the issuance of the currently outstanding Limited Pledge Obligations.
However, the lien on and pledge of the limited amount of Net Revenues securing, in part, the
payment of the Certificates, the Limited Pledge Obligations, and any Additional Limited Pledge
Obligations shall be subordinate and inferior to the pledge of and lien on the Net Revenues
securing the payment of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate
Lien Obligations hereafter issued by the City.
41851932.3 -28-
SECTION 21. Special Covenants. The City hereby further covenants that:
A. it has the lawful power to pledge the Pledged Revenues supporting the
Certificates and has lawfully exercised said powers under the laws of the State of Texas,
including power existing under Chapter 1502, as amended, Texas Government Code, the
Certificate of Obligation Act of 1971, as amended, Texas Local Government Code, Section
271.041 through Section 271.064, and the City’s Home Rule Charter;
B. other than for the payment of the currently outstanding Limited Pledge
Obligations, and the Certificates, the Net Revenues of the System have not in any manner been
pledged to the payment of any debt or obligation of the City or of the System;
C. as long as any Certificates or any interest thereon remain Outstanding, the City
will not sell, lease or encumber (except in the manner provided in Section 20 of this Ordinance)
the System or any substantial part thereof, provided that this covenant shall not be construed to
prohibit the sale of such machinery, or other properties or equipment which has become obsolete
or otherwise unsuited to the efficient operation of the System;
D. to the extent that it legally may, the City further covenants and agrees that, so
long as any of the Certificates, or any interest thereon, are Outstanding, no franchise shall be
granted for the installation or operation of any competing utility systems other than those owned
by the City, and the operation of any such systems by anyone other than the City is hereby
prohibited; and
E. no free service of the System shall be allowed, and should the City or any of its
agents 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 from sources other than the
revenues and income of the System.
SECTION 22. Application of the Covenants and Agreements of any Prior Lien
Obligations, Junior Lien Obligations, or Subordinate Lien Obligations. It is the intention of the
City Council and accordingly hereby recognized and stipulated that the provisions, agreements,
and covenants contained herein bearing upon the management and operations of the System, and
the administration and application of Gross Revenues derived from the operation thereof, shall to
the extent possible be harmonized with like provisions, agreements, and covenants contained in
the ordinances authorizing the issuance of any Prior Lien Obligations, Junior Lien Obligations,
or Subordinate Lien Obligations hereafter issued by the City, and to the extent of any
irreconcilable conflict between the provisions contained herein and in the ordinances authorizing
the issuance of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien
Obligations, the provisions, agreements and covenants contained therein shall prevail to the
extent of such conflict and be applicable to this Ordinance, especially the priority of rights and
benefits conferred thereby to the holders of any Prior Lien Obligations, Junior Lien Obligations,
or Subordinate Lien Obligations hereafter issued by the City. It is expressly recognized that
prior to the issuance of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien
Obligations, the City must comply with each of the conditions precedent contained in the
respective ordinances authorizing the issuance of the currently outstanding Limited Pledge
Obligations and the Certificates, as appropriate.
41851932.3 -29-
SECTION 23. Notices to Holders – Waiver. Wherever this Ordinance provides for
notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and sent by United States mail, first-class postage prepaid, to
the address of each Holder as it appears in the Security Register.
In any case where notice to Holders is given by mail, neither the failure to mail such
notice to any particular Holders, nor any defect in any notice so mailed, shall affect the
sufficiency of such notice with respect to all other Holders. Where this Ordinance provides for
notice in any manner, such notice may be waived in writing by the Holder entitled to receive
such notice, either before or after the event with respect to which such notice is given, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any
action taken in reliance upon such waiver.
SECTION 24. Cancellation. All Certificates surrendered for payment, redemption,
transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be
promptly canceled by it and, if surrendered to the City, shall be delivered to the Paying
Agent/Registrar and, if not already canceled, shall be promptly canceled by the Paying
Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for
cancellation any Certificates previously certified or registered and delivered which the City may
have acquired in any manner whatsoever, and all Certificates so delivered shall be promptly
canceled by the Paying Agent/Registrar. All canceled Certificates held by the Paying
Agent/Registrar shall be destroyed as directed by the City.
SECTION 25. Mutilated, Destroyed, Lost, and Stolen Certificates. If (1) any mutilated
Certificate is surrendered to the Paying Agent/Registrar, or the City and the Paying
Agent/Registrar receive evidence to their satisfaction of the destruction, loss, or theft of any
Certificate, and (2) there is delivered to the City and the Paying Agent/Registrar such security or
indemnity as may be required to save each of them harmless, then, in the absence of notice to the
City or the Paying Agent/Registrar that such Certificate has been acquired by a bona fide
purchaser, the City shall execute and, upon its request, the Paying Agent/Registrar shall register
and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Certificate,
a new Certificate of the same Stated Maturity and interest rate and of like tenor and principal
amount, bearing a number not contemporaneously Outstanding.
In case any such mutilated, destroyed, lost, or stolen Certificate has become or is about to
become due and payable, the City in its discretion may, instead of issuing a new Certificate, pay
such Certificate.
Upon the issuance of any new Certificate or payment in lieu thereof, under this Section,
the City may require payment by the Holder of a sum sufficient to cover any tax or other
governmental charge imposed in relation thereto and any other expenses and charges (including
attorney’s fees and the fees and expenses of the Paying Agent/Registrar) connected therewith.
Every new Certificate issued pursuant to this Section in lieu of any mutilated, destroyed,
lost, or stolen Certificate shall constitute a replacement of the prior obligation of the City,
whether or not the mutilated, destroyed, lost, or stolen Certificate shall be at any time
41851932.3 -30-
enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and
ratably with all other Outstanding Certificates.
The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement and payment of mutilated, destroyed,
lost, or stolen Certificates.
SECTION 26. Sale of the Certificates at Competitive Sale – Approval of the Official
Statement. The Certificates authorized by this Ordinance are hereby sold by the City to
__________________, ___________________, ___________, as the authorized representative
of a group of underwriters at a competitive sale (the Purchasers, having all the rights, benefits,
and obligations of a Holder), in accordance with the provisions of an Official Bid Form (the
Official Bid Form), dated August 2, 2016, attached hereto as Exhibit B and incorporated herein
by reference as a part of this Ordinance for all purposes, at the price of par, plus a cash premium
of $___________ (including the Purchasers’ compensation of $_______ and an excess bid
premium of $___________), plus accrued interest to the date of initial delivery of the
Certificates to the Purchasers and is hereby approved and confirmed. The Initial Certificate shall
be registered in the name of _________________. It is hereby officially found, determined, and
declared that the Purchasers are the highest bidder for the Certificates whose bid, received as a
result of invitations for competitive bids in compliance with applicable law, produced the lowest
true interest cost to the City. The pricing and terms of the sale of the Certificates are hereby
found and determined to be the most advantageous reasonably obtainable by the City. Any
Authorized Official is hereby authorized and directed to execute the Official Bid Form for and
on behalf of the City and as the act and deed of this City Council, and in regard to the approval
and execution of the Official Bid Form, the City Council hereby finds, determines and declares
that the representations, warranties, and agreements of the City contained in the Official Bid
Form are true and correct in all material respects and shall be honored and performed by the
City. Delivery of the Certificates to the Purchasers shall occur as soon as practicable after the
adoption of this Ordinance, upon payment therefor in accordance with the terms of the Official
Bid Form.
Proceeds from the sale of the Certificates shall be applied as follows:
(1) Accrued interest in the amount of $___________ and a Bidder’ Premium
of $____________ received from the Purchasers shall be deposited into the Certificate
Fund.
(2) The City received a net original issue reoffering premium from the sale of
the Certificates of $__________ which is hereby allocated by the City in the following
manner: (1) $___________ to pay the Purchasers’ compensation (2) $______________
shall be deposited into the construction account established in paragraph (3) below, and
(3) $______________ to pay the remaining costs of issuance.
(3) The balance of the proceeds derived from the sale of the Certificates (after
paying costs of issuance) shall be deposited into the special construction account or
accounts created for the projects to be constructed with the proceeds of the Certificates
and used to pay costs of such projects. This special construction account shall be
41851932.3 -31-
established and maintained at the Depository and shall be invested in accordance with the
provisions of Section 10 of this Ordinance. Interest earned on the proceeds of the
Certificates pending completion of construction of the projects financed with such
proceeds shall be accounted for, maintained, deposited, and expended as permitted by the
provisions of Chapter 1201, as amended, Texas Government Code, or as required by any
other applicable law. Thereafter, such amounts shall be expended in accordance with
Section 14 of this Ordinance.
Furthermore, the City hereby ratifies, confirms, and approves in all respects (i) the City’s
prior determination that the Preliminary Official Statement was, as of its date, “deemed final” in
accordance with the Rule (hereinafter defined) and (ii) the use and distribution of the Official
Notice of Sale, Official Bid Form, and Preliminary Official Statement by the Purchasers in
connection with the public offering and sale of the Certificates. The final Official Statement,
being a modification and amendment of the Preliminary Official Statement to reflect the terms of
sale referenced in the Official Bid Form (together with such changes approved by any
Authorized Official, any one or more of said officials), shall be and is hereby in all respects
approved and the Purchasers are hereby authorized to use and distribute the final Official
Statement, dated August 2, 2016, in the reoffering, sale and delivery of the Certificates to the
public. The Mayor and City Secretary are further authorized and directed to manually execute
and deliver for and on behalf of the City copies of the Official Statement in final form as may be
required by the Purchasers, and such final Official Statement in the form and content manually
executed by said officials shall be deemed to be approved by the City Council and constitute the
Official Statement authorized for distribution and use by the Purchasers. The proper officials of
the City are hereby authorized to execute and deliver a certificate pertaining to such Official
Statement as prescribed therein, dated as of the date of payment for and delivery of the
Certificates.
SECTION 27. Taxable Obligations. The Certificates are not “state or local bonds” within
the meaning of section 103(a) and (c) of the Internal Revenue Code of 1986, as amended;
therefore, the interest on the Certificates is not excludable from the gross income of the holders
thereof for federal income tax purposes.
SECTION 28. Control and Custody of Certificates. The Mayor of the City shall be and is
hereby authorized to take and have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas and shall take and have charge and
control of the Certificates pending their approval by the Attorney General of the State of Texas,
the registration thereof by the Comptroller of Public Accounts of the State of Texas and the
delivery of the Certificates to the Purchasers.
Furthermore, each Authorized Official, either individually or any combination of them, is
hereby authorized and directed to furnish and execute such documents relating to the City and its
financial affairs as may be necessary for the issuance of the Certificates, the approval of the
Attorney General of the State of Texas and their registration by the Comptroller of Public
Accounts of the State of Texas and, together with the City’s financial advisors, Bond Counsel,
and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial
Certificate to the Purchasers and, when requested in writing by the Purchasers, the initial
exchange thereof for definitive Certificates.
41851932.3 -32-
SECTION 29. Satisfaction of Obligation of City. If the City shall pay or cause to be
paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and
interest on the Certificates, at the times and in the manner stipulated in this Ordinance, then the
pledge of taxes levied and the lien on and pledge of the Pledged Revenues under this Ordinance
and all covenants, agreements, and other obligations of the City to the Holders shall thereupon
cease, terminate, and be discharged and satisfied.
Certificates, or any principal amount(s) thereof, shall be deemed to have been paid within
the meaning and with the effect expressed above in this Section when (i) money sufficient to pay
in full such Certificates or the principal amount(s) thereof at Stated Maturity or to the redemption
date therefor, together with all interest due thereon, shall have been irrevocably deposited with
and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, and/or
(ii) Government Securities shall have been irrevocably deposited in trust with the Paying
Agent/Registrar, or an authorized escrow agent, which Government Securities have, in the case
of a net defeasance, been certified by an independent accounting firm to mature as to principal
and interest in such amounts and at such times as will insure the availability, without
reinvestment, of sufficient money, together with any money deposited therewith, if any, to pay
when due the principal of and interest on such Certificates, or the principal amount(s) thereof, on
and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or
waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have
been made) the redemption date thereof for the Certificates. In the event of a gross defeasance of
the Certificates, the City shall deliver a certificate from its financial advisor, the Paying
Agent/Registrar, or another qualified third party concerning the deposit of cash and/or
Government Securities to pay, when due, the principal of, redemption premium (if any), and
interest due on any defeased Certificate. The City covenants that no deposit of money or
Government Securities will be made under this Section and no use made of any such deposit
which would cause the Certificates to be treated as arbitrage bonds within the meaning of section
148 of the Code (as defined in Section 27 hereof).
Any money so deposited with the Paying Agent/Registrar, and all income from
Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow
agent, pursuant to this Section which is not required for the payment of the Certificates, or any
principal amount(s) thereof, or interest thereon with respect to which such money has been so
deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any
money held by the Paying Agent/Registrar for the payment of the principal of and interest on the
Certificates and remaining unclaimed for a period of three (3) years after the Stated Maturity of
the Certificates, or applicable redemption date of the Certificates, such money was deposited and
is held in trust to pay shall upon the request of the City be remitted to the City against a written
receipt therefor, subject to the unclaimed property laws of the State of Texas.
Notwithstanding any other provision of this Ordinance to the contrary, it is hereby
provided that any determination not to redeem defeased Certificates that is made in conjunction
with the payment arrangements specified in subsection (i) or (ii) above shall not be irrevocable,
provided that: (1) in the proceedings providing for such defeasance, the City expressly reserves
the right to call the defeased Certificates for redemption; (2) gives notice of the reservation of
that right to the owners of the defeased Certificates immediately following the defeasance;
(3) directs that notice of the reservation be included in any redemption notices that it authorizes;
41851932.3 -33-
and (4) at the time of the redemption, satisfies the conditions of (i) or (ii) above with respect to
such defeased debt as though it was being defeased at the time of the exercise of the option to
redeem the defeased Certificates, after taking the redemption into account in determining the
sufficiency of the provisions made for the payment of the defeased Certificates.
SECTION 30. Printed Opinion. The Purchasers’ obligation to accept delivery of the
Certificates is subject to their being furnished a final opinion of Norton Rose Fulbright US LLP,
San Antonio, Texas, as Bond Counsel, approving certain legal matters as to the Certificates, this
opinion to be dated and delivered as of the date of initial delivery and payment for such
Certificates. Printing of a true and correct copy of this opinion on the reverse side of each of the
Certificates, with appropriate certificate pertaining thereto executed by facsimile signature of the
City Secretary of the City is hereby approved and authorized.
SECTION 31. CUSIP Numbers. CUSIP numbers may be printed or typed on the
definitive Certificates. It is expressly provided, however, that the presence or absence of CUSIP
numbers on the definitive Certificates shall be of no significance or effect as regards the legality
thereof, and neither the City nor Bond Counsel are to be held responsible for CUSIP numbers
incorrectly printed or typed on the definitive Certificates.
SECTION 32. Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.
SECTION 33. Ordinance a Contract, Amendments - Outstanding Certificates. The City
acknowledges that the covenants and obligations of the City herein contained are a material
inducement to the purchase of the Certificates. This Ordinance shall constitute a contract with
the Holders from time to time, binding on the City and its successors and assigns, and it shall not
be amended or repealed by the City so long as any Certificate remains Outstanding except as
permitted in this Section. The City may, without the consent of or notice to any Holders, from
time to time and at any time, amend this Ordinance in any manner not detrimental to the interests
of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or
omission herein. In addition, the City may, with the written consent of Holders holding a
majority in aggregate principal amount of the Certificates then Outstanding affected thereby,
amend, add to, or rescind any of the provisions of this Ordinance; provided, however, that,
without the consent of all Holders of Outstanding Certificates, no such amendment, addition, or
rescission shall (1) extend the time or times of payment of the principal of and interest on the
Certificates, reduce the principal amount thereof or the rate of interest thereon, or in any other
way modify the terms of payment of the principal of, the redemption price therefor, or interest on
the Certificates, (2) give any preference to any Certificate over any other Certificate, or (3)
reduce the aggregate principal amount of Certificates required for consent to any such
amendment, addition, or rescission.
SECTION 34. Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is
intended or shall be construed to confer upon any person other than the City, Bond Counsel,
Paying Agent/Registrar, and the Holders, any right, remedy, or claim, legal or equitable, under or
by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being
intended to be and being for the sole and exclusive benefit of the City, Bond Counsel, Paying
Agent/Registrar, and the Holders.
41851932.3 -34-
SECTION 35. Inconsistent Provisions. All ordinances and resolutions, or parts thereof,
which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to
the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling
as to the matters ordained herein.
SECTION 36. Governing Law. This Ordinance shall be construed and enforced in
accordance with the laws of the State of Texas and the United States of America.
SECTION 37. Severability. If any provision of this Ordinance or the application thereof
to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the
application of such provision to other persons and circumstances shall nevertheless be valid, and
the City Council hereby declares that this Ordinance would have been enacted without such
invalid provision.
SECTION 38. Construction of Terms. If appropriate in the context of this Ordinance,
words of the singular number shall be considered to include the plural, words of the plural
number shall be considered to include the singular, and words of the masculine, feminine or
neuter gender shall be considered to include the other genders.
SECTION 39. Incorporation of Preamble Recitals. The recitals contained in the
preamble hereof are hereby found to be true, and such recitals are hereby made a part of this
Ordinance for all purposes and are adopted as a part of the judgment and findings of the City
Council of the City.
SECTION 40. Authorization of Paying Agent/Registrar Agreement. The City Council of
the City hereby finds and determines that it is in the best interest of the City to authorize the
execution of a Paying Agent/Registrar Agreement concerning the payment, exchange,
registration, and transferability of the Certificates. A copy of the Paying Agent/Registrar
Agreement is attached hereto, in substantially final form, as Exhibit A and is incorporated by
reference to the provisions of this Ordinance.
SECTION 41. Public Meeting. It is officially found, determined, and declared that the
meeting at which this Ordinance is adopted was open to the public and public notice of the time,
place, and subject matter of the public business to be considered at such meeting, including this
Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code.
SECTION 42. Unavailability of Authorized Publication. If, because of the temporary or
permanent suspension of any newspaper, journal, or other publication, or, for any reason,
publication of notice cannot be made meeting any requirements herein established, any notice
required to be published by the provisions of this Ordinance shall be given in such other manner
and at such time or times as in the judgment of the City or of the Paying Agent/Registrar shall
most effectively approximate such required publication and the giving of such notice in such
manner shall for all purposes of this Ordinance be deemed to be in compliance with the
requirements for publication thereof.
SECTION 43. No Recourse Against City Officials. No recourse shall be had for the
payment of principal of, premium, if any, or interest on any Certificate or for any claim based
41851932.3 -35-
thereon or on this Ordinance against any official of the City or any person executing any
Certificate.
SECTION 44. Continuing Disclosure Undertaking.
A. Definitions.
As used in this Section, the following terms have the meanings ascribed to such terms
below:
EMMA means the MSRB’s Electronic Municipal Market Access system, accessible by
the general public, without charge, on the internet through the uniform resource locator (URL)
http://www.emma.msrb.org.
MSRB means the Municipal Securities Rulemaking Board.
Rule means SEC Rule 15c2-12, as amended from time to time.
SEC means the United States Securities and Exchange Commission.
B. Annual Reports.
The City shall file annually with the MSRB, (1) within six months after the end of each
fiscal year of the City ending in or after 2016, financial information and operating data with
respect to the City of the general type included in the final Official Statement authorized by
Section 26 of this Ordinance, being the information described in Exhibit D hereto, and (2) if not
provided as part of such financial information and operating data, audited financial statements of
the City, when and if available. Any financial statements so to be provided shall be (i) prepared
in accordance with the accounting principles described in Exhibit D hereto, or such other
accounting principles as the City may be required to employ from time to time pursuant to state
law or regulation, and (ii) audited, if the City commissions an audit of such financial statements
and the audit is completed within the period during which they must be provided. If the audit of
such financial statements is not complete within such period, then the City shall file unaudited
financial statements within such period and audited financial statements for the applicable fiscal
year to the MSRB, when and if the audit report on such financial statements becomes available.
Under current Texas law, including, but not limited to, Chapter 103, as amended, Texas Local
Government Code, the City must have its records and accounts audited annually and shall have
an annual financial statement prepared based on the audit. The annual financial statement,
including the auditor’s opinion on the statement, shall be filed in the office of the City Secretary
within 180 days after the last day of the City’s fiscal year. Additionally, upon the filing of this
financial statement and the annual audit, these documents are subject to the Texas Open Records
Act, as amended, Texas Government Code, Chapter 552.
If the City changes its fiscal year, it will file notice of such change (and of the date of the
new fiscal year end) with the MSRB prior to the next date by which the City otherwise would be
required to provide financial information and operating data pursuant to this Section.
41851932.3 -36-
C. Notice of Certain Events.
The City shall file notice of any of the following events with respect to the Certificates to
the MSRB in a timely manner and not more than 10 business days after occurrence of the event:
(1) Principal and interest payment delinquencies;
(2) Non-payment related defaults, if material;
(3) Unscheduled draws on debt service reserves reflecting financial difficulties;
(4) Unscheduled draws on credit enhancements reflecting financial difficulties;
(5) Substitution of credit or liquidity providers, or their failure to perform;
(6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other
material notices or determinations with respect to the tax status of the Certificates, or other
material events affecting the tax status of the Certificates (the Certificates are issued as “taxable
obligations” pursuant to the Internal Revenue Code of 1986, as amended);
(7) Modifications to rights of holders of the Certificates, if material;
(8) Certificate calls, if material, and tender offers;
(9) Defeasances;
(10) Release, substitution, or sale of property securing repayment of the Certificates, if
material;
(11) Rating changes;
(12) Bankruptcy, insolvency, receivership, or similar event of the City, which shall
occur as described below;
(13) The consummation of a merger, consolidation, or acquisition involving the City
or the sale of all or substantially all of its assets, other than in the ordinary course of business, the
entry into of a definitive agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms, if material; and
(14) Appointment of a successor or additional paying agent/registrar or the change of
name of a paying agent/registrar, if material.
For these purposes, any event described in the immediately preceding paragraph (12) is
considered to occur when any of the following occur: the appointment of a receiver, fiscal agent,
or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any
other proceeding under state or federal law in which a court or governmental authority has
assumed jurisdiction over substantially all of the assets or business of the City, or if such
jurisdiction has been assumed by leaving the existing governing body and officials or officers in
41851932.3 -37-
possession but subject to the supervision and orders of a court or governmental authority, or the
entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or
governmental authority having supervision or jurisdiction over substantially all of the assets or
business of the City.
The City shall file notice with the MSRB, in a timely manner, of any failure by the City
to provide financial information or operating data in accordance with this Section by the time
required by this Section.
D. Limitations, Disclaimers, and Amendments.
The City shall be obligated to observe and perform the covenants specified in this Section
for so long as, but only for so long as, the City remains an “obligated person” with respect to the
Certificates within the meaning of the Rule, except that the City in any event will give notice of
any deposit that causes the Certificates to be no longer Outstanding.
The provisions of this Section are for the sole benefit of the holders and beneficial
owners of the Certificates, and nothing in this Section, express or implied, shall give any benefit
or any legal or equitable right, remedy, or claim hereunder to any other person. The City
undertakes to provide only the financial information, operating data, financial statements, and
notices which it has expressly agreed to provide pursuant to this Section and does not hereby
undertake to provide any other information that may be relevant or material to a complete
presentation of the City’s financial results, condition, or prospects or hereby undertake to update
any information provided in accordance with this Section or otherwise, except as expressly
provided herein. The City does not make any representation or warranty concerning such
information or its usefulness to a decision to invest in or sell Certificates at any future date.
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER
OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN
CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM
ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITH OR WITHOUT FAULT
ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT
AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON
ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR
MANDAMUS OR SPECIFIC PERFORMANCE.
No default by the City in observing or performing its obligations under this Section shall
constitute a breach of or default under this Ordinance for purposes of any other provision of this
Ordinance.
Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the
duties of the City under federal and state securities laws.
The provisions of this Section may be amended by the City from time to time to adapt to
changed circumstances that arise from a change in legal requirements, a change in law, or a
change in the identity, nature, status, or type of operations of the City, but only if (1) the
provisions of this Section, as so amended, would have permitted an underwriter to purchase or
sell Certificates in the primary offering of the Certificates in compliance with the Rule, taking
41851932.3 -38-
into account any amendments or interpretations of the Rule to the date of such amendment, as
well as such changed circumstances, and (2) either (a) the holders of a majority in aggregate
principal amount (or any greater amount required by any other provision of this Ordinance that
authorizes such an amendment) of the Outstanding Certificates consent to such amendment or
(b) a person that is unaffiliated with the City (such as nationally recognized bond counsel)
determines that such amendment will not materially impair the interests of the holders and
beneficial owners of the Certificates. The City may also repeal or amend the provisions of this
Section if the SEC amends or repeals the applicable provisions of the Rule or any court of final
jurisdiction enters judgment that such provisions of the Rule are invalid, and the City also may
amend the provisions of this Section in its discretion in any other manner or circumstance, but in
either case only if and to the extent that the provisions of this sentence would not have prevented
an underwriter from lawfully purchasing or selling Certificates in the primary offering of the
Certificates, giving effect to (a) such provisions as so amended and (b) any amendments or
interpretations of the Rule. If the City so amends the provisions of this Section, the City shall
include with any amended financial information or operating data next provided in accordance
with this Section an explanation, in narrative form, of the reasons for the amendment and of the
impact of any change in the type of financial information or operating data so provided.
E. Information Format – Incorporation by Reference.
The City information required under this Section shall be filed with the MSRB through
EMMA in such format and accompanied by such identifying information as may be specified
from time to time thereby. Under the current rules of the MSRB, continuing disclosure
documents submitted to EMMA must be in word-searchable portable document format (PDF)
files that permit the document to be saved, viewed, printed, and retransmitted by electronic
means and the series of obligations to which such continuing disclosure documents relate must
be identified by CUSIP number or numbers.
Financial information and operating data to be provided pursuant to this Section may be
set forth in full in one or more documents or may be included by specific reference to any
document (including an official statement or other offering document) available to the public
through EMMA or filed with the SEC.
SECTION 45. Book-Entry Only System .
It is intended that the Certificates will initially be registered so as to participate in a
securities depository system (the DTC System) with the Depository Trust Company, New York,
New York, or any successor entity thereto (DTC), as set forth herein. Each Stated Maturity of
the Certificates shall be issued (following cancellation of the Initial Certificates described in
Section 7) in the form of a single definitive Certificate. Upon issuance, the ownership of each
such Certificate shall be registered in the name of Cede & Co., as the nominee of DTC, and all of
the Outstanding Certificates shall be registered in the name of Cede & Co., as the nominee of
DTC. The City and the Paying Agent/Registrar are authorized to execute, deliver, and take the
actions set forth in such letters to or agreements with DTC as shall be necessary to effectuate the
DTC System, including the Letter of Representations attached hereto as Exhibit D (the
Representation Letter).
41851932.3 -39-
With respect to the Certificates registered in the name of Cede & Co., as nominee of
DTC, the City and the Paying Agent/Registrar shall have no responsibility or obligation to any
broker-dealer, bank, or other financial institution for which DTC holds the Certificates from time
to time as securities depository (a Depository Participant) or to any person on behalf of whom
such a Depository Participant holds an interest in the Certificates (an Indirect Participant).
Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar
shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC,
Cede & Co., or any Depository Participant with respect to any ownership interest in the
Certificates, (ii) the delivery to any Depository Participant or any other person, other than a
registered owner of the Certificates, as shown on the Security Register, of any notice with
respect to the Certificates, including any notice of redemption, or (iii) the delivery to any
Depository Participant or any Indirect Participant or any other Person, other than a Holder of a
Certificate, of any amount with respect to principal of, premium, if any, or interest on the
Certificates. While in the DTC System, no person other than Cede & Co., or any successor
thereto, as nominee for DTC, shall receive a bond certificate evidencing the obligation of the
City to make payments of principal, premium, if any, and interest pursuant to this Ordinance.
Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC has
determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in
this Ordinance with respect to interest checks or drafts being mailed to the Holder, the word
“Cede & Co.” in this Ordinance shall refer to such new nominee of DTC.
In the event that (a) the City determines that DTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (b) the Representation Letter
shall be terminated for any reason, or (c) DTC or the City determines that it is in the best interest
of the beneficial owners of the Certificates that they be able to obtain certificated Certificates, the
City shall notify the Paying Agent/Registrar, DTC, and the Depository Participants of the
availability within a reasonable period of time through DTC of bond certificates, and the
Certificates shall no longer be restricted to being registered in the name of Cede & Co., as
nominee of DTC. At that time, the City may determine that the Certificates shall be registered in
the name of and deposited with a successor depository operating a securities depository system,
as may be acceptable to the City, or such depository’s agent or designee, and if the City and the
Paying Agent/Registrar do not select such alternate securities depository system then the
Certificates may be registered in whatever name or names the Holders of Certificates transferring
or exchanging the Certificates shall designate, in accordance with the provisions hereof.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any
Certificate is registered in the name of Cede & Co., as nominee of DTC, all payments with
respect to principal of, premium, if any, and interest on such Certificate and all notices with
respect to such Certificate shall be made and given, respectively, in the manner provided in the
Representation Letter.
SECTION 46. Further Procedures. The officers and employees of the City are hereby
authorized, empowered and directed from time to time and at any time to do and perform all such
acts and things and to execute, acknowledge and deliver in the name and under the corporate seal
and on behalf of the City all such instruments, whether or not herein mentioned, as may be
necessary or desirable in order to carry out the terms and provisions of this Ordinance, the initial
sale and delivery of the Certificates, the Official Bid Form, the Paying Agent/Registrar
41851932.3 -40-
Agreement, and the Official Statement. In addition, prior to the initial delivery of the
Certificates, any Authorized Official and Bond Counsel are hereby authorized and directed to
approve any technical changes or corrections to this Ordinance or to any of the instruments
authorized and approved by this Ordinance and as described in the Official Statement necessary
in order to (i) correct any ambiguity or mistake or properly or more completely document the
transactions contemplated and approved by this Ordinance, (ii) obtain a rating from any of the
national bond rating agencies, or (iii) obtain the approval of the Certificates by the Texas
Attorney General’s office. In case any officer of the City whose signature shall appear on any
certificate shall cease to be such officer before the delivery of such certificate, such signature
shall nevertheless be valid and sufficient for all purposes the same as if such officer had
remained in office until such delivery.
SECTION 47. Contracts with Financial Advisor and/or Bond Counsel. The City Council
authorizes the Mayor, the Mayor Pro Tem, and/or the City Manager, or their designees, to take
all actions necessary to execute any necessary financial advisory contracts with SAMCO Capital
Markets, Inc., as the financial advisor to the City (the Financial Advisor). The City understands
that under applicable federal securities laws and regulations that the City must have a contractual
arrangement with its Financial Advisor relating to the sale, issuance, and delivery of the
Certificates. In addition, the City Council also authorizes the Mayor, the Mayor Pro Tem, and/or
the City Manager, or their designees, to take all actions necessary to execute any necessary
engagement agreement with Norton Rose Fulbright US LLP, as the Bond Counsel to the City.
SECTION 48. City’s Consent to Provide Information and Documentation to the Texas
MAC. The Municipal Advisory Council of Texas (the Texas MAC), a non-profit membership
corporation organized exclusively for non-profit purposes described in section 501(c)(6) of the
Internal Revenue Code and which serves as a comprehensive financial information repository
regarding municipal debt issuers in Texas, requires provision of written documentation regarding
the issuance of municipal debt by the issuers thereof. In support of the purpose of the Texas
MAC and in compliance with applicable law, the City hereby consents to and authorizes any
Authorized Official, Bond Counsel to the City, and/or Financial Advisor to the City to provide to
the Texas MAC information and documentation requested by the Texas MAC relating to the
Certificates; provided, however, that no such information and documentation shall be provided
prior to the Closing Date. This consent and authorization relates only to information and
documentation that is a part of the public record concerning the issuance of the Certificates.
SECTION 49. Effective Date. Pursuant to the provisions of Section 1201.028, as
amended, Texas Government Code, this Ordinance shall be effective immediately upon
adoption, notwithstanding any provision in the City’s Home Rule Charter to the contrary
concerning a multiple reading requirement for the adoption of ordinances.
[The remainder of this page intentionally left blank.]
41851932.3 S-1
PASSED, APPROVED, AND ADOPTED on the 2nd day of August, 2016.
CITY OF SCHERTZ, TEXAS
____________________________________
Mayor
ATTEST:
_______________________________________
City Secretary
(CITY SEAL)
41851932.3 S-1
INDEX TO EXHIBITS
Exhibit A Paying Agent/Registrar Agreement
Exhibit B Official Bid Form
Exhibit C Description of Annual Financial Information
Exhibit D DTC Letter of Representations
41851932.3 A-1
EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
See Tab No. ___
41851932.3 B-1
EXHIBIT B
OFFICIAL BID FORM
See Tab No. ___
41851932.3 C-1
EXHIBIT C
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 44 of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided
annually in accordance with such Section are as specified (and included in the Appendix or
under the headings of the Official Statement referred to) below:
(15) The City’s audited financial statements for the most recently concluded fiscal year
or to the extent these audited financial statements are not available, the portions of the unaudited
financial statements of the City attached to the Official Statement as Appendix D, but for the
most recently concluded fiscal year.
(16) The information in the Official Statement under Table 1 of the Official Statement
and Tables 1 through 10 of Appendix A, to the Official Statement.
Accounting Principles
The accounting principles referred to in such Section are generally accepted accounting
principles for governmental units as prescribed by the Government Accounting Standards Board
from time to time.
41851932.3 D-1
EXHIBIT D
DTC LETTER OF REPRESENTATIONS
SEE TAB NO. __
Agenda No. 9
CITY COUNCIL MEMORANDUM
City Council Meeting: August 2, 2016
Department: Finance
Subject: CONSIDERATION OF BIDS RELATING TO
THE SALE OF OBLIGATIONS DESIGNATED
AS “CITY OF SCHERTZ, TEXAS GENERAL
OBLIGATION BONDS, SERIES 2016”,
CONSIDERATION AND APPROVAL OF
FINANCIAL ADVISOR’S
RECOMMENDATION CONCERNING THIS
MATTER; AND OTHER MATTERS IN
CONNECTION THEREWITH
BACKGROUND:
Bids were received at 12PM CDT today (August 2, 2016) for the City’s General Obligation
Bonds, Series 2016 (the “Bonds”). The City’s financial advisor, SAMCO Capital Markets, will
discuss the bid process and bid results before the Council in open meeting.
FISCAL IMPACT
The fiscal impact of the sale of the Bonds will be discussed in Agenda Item No. 8.
RECOMMENDATION
This is not an action item and the City’s Financial Advisor will make a recommendation
pertaining to the bids in the meeting. Recommended motion:
A MOTION BY TRUSTEE ______________ AND SECONDED BY TRUSTEE
_____________ THAT THE CITY COUNCIL ACCEPT THE FINANCIAL ADVISOR’S
RECOMMENDATION CONCERNING THE ACCEPTANCE OF BIDS RELATING TO
THE SALE OF OBLIGATIONS DESIGNATED AS “CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION BONDS, SERIES 2016”
ATTACHMENT(S)
None
Agenda No. 10
CITY COUNCIL MEMORANDUM
City Council Meeting: August 2, 2016
Department: Finance
Subject: ORDINANCE NO. 16-B-24 - AN ORDINANCE
AUTHORIZING THE ISSUANCE OF “CITY
OF SCHERTZ, TEXAS GENERAL
OBLIGATION BONDS, SERIES 2016”;
LEVYING A CONTINUING DIRECT
ANNUAL AD VALOREM TAX, WITHIN THE
LIMITATIONS PRESCRIBED BY LAW, FOR
THE PAYMENT OF THE BONDS;
PRESCRIBING THE FORM, TERMS,
CONDITIONS, AND RESOLVING OTHER
MATTERS INCIDENT AND RELATED TO
THE ISSUANCE, SALE, AND DELIVERY OF
THE BONDS, INCLUDING THE APPROVAL
AND DISTRIBUTION OF AN OFFICIAL
STATEMENT PERTAINING THERETO;
AUTHORIZING THE EXECUTION OF A
PAYING AGENT/REGISTRAR AGREEMENT
AND AN OFFICIAL BID FORM;
COMPLYING WITH THE PROVISIONS OF
THE DEPOSITORY TRUST COMPANY’S
LETTER OF REPRESENTATIONS;
AUTHORIZING THE EXECUTION OF ANY
NECESSARY ENGAGEMENT
AGREEMENTS WITH THE CITY’S
FINANCIAL ADVISORS AND/OR BOND
COUNSEL; AND PROVIDING FOR AN
EFFECTIVE DATE (FIRST & FINAL)
BACKGROUND:
The voters authorized the City to issue $15,000,000 for street and bridge improvements and
public safety facilities at an election held November 3, 2015. The Bond Ordinance before the
Council tonight is to authorize the sale of approximately $6,000,000 General Obligation Bonds,
Series 2016. The Proceeds will be used for FM 1103 ($2,000,000) as well as the construction of
Fire Station No. 3 ($4,000,000). The Bonds will be amortized over 20 years and will be callable
by the City in 10 years as is customary for a financing of this size.
FISCAL IMPACT
The authorization of the Bond Ordinance should not result in a tax rate increase. The proceeds
will be delivered to the City on September 1st. The Bonds are being issued at the same time as
the Tax-Exempt Certificates of Obligation as well as Taxable Certificates of Obligation, to be
discussed in greater detail under separate agenda items to follow. When the CO’s are approved,
along with this GO Bond, it is estimated that there will be little to no impact on the I&S Tax Rate
RECOMMENDATION
Staff recommends approving the Bond Ordinance on first and final reading selling the securities
to the initial purchaser. Recommended motion:
A MOTION BY COUNCILMEMBER ______________ AND SECONDED BY
COUNCILMEMBER __________ THAT THE CITY COUNCIL ADOPT AN
ORDINANCE AUTHORIZING THE ISSUANCE OF “CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION BONDS, SERIES 2016”
ATTACHMENT(S)
Bond Ordinance.
36253591.4
DRAFT 7/18/16
ORDINANCE NO. _______
AN ORDINANCE AUTHORIZING THE ISSUANCE OF “CITY OF
SCHERTZ, TEXAS GENERAL OBLIGATION BONDS, SERIES 2016”;
LEVYING A CONTINUING DIRECT ANNUAL AD VALOREM TAX,
WITHIN THE LIMITATIONS PRESCRIBED BY LAW, FOR THE
PAYMENT OF THE BONDS; PRESCRIBING THE FORM, TERMS,
CONDITIONS, AND RESOLVING OTHER MATTERS INCIDENT AND
RELATED TO THE ISSUANCE, SALE, AND DELIVERY OF THE
BONDS, INCLUDING THE APPROVAL AND DISTRIBUTION OF AN
OFFICIAL STATEMENT PERTAINING THERETO; AUTHORIZING
THE EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT
AND AN OFFICIAL BID FORM; COMPLYING WITH THE
PROVISIONS OF THE DEPOSITORY TRUST COMPANY’S LETTER OF
REPRESENTATIONS; AUTHORIZING THE EXECUTION OF ANY
NECESSARY ENGAGEMENT AGREEMENTS WITH THE CITY’S
FINANCIAL ADVISORS AND/OR BOND COUNSEL; AND PROVIDING
FOR AN EFFECTIVE DATE
WHEREAS, the City Council (the Governing Body) of the City of Schertz, Texas (the
Issuer or the City) hereby finds and determines that general obligation bonds of the Issuer in the
total principal amount of $____________ (being the principal amount of $________ and a
portion of premium of $____________ of the hereinafter defined voter authorization should be
issued and sold at this time, being the first installment of general obligation bonds approved and
authorized to be issued at an election held on November 3, 2015, the respective authorized
purposes and amounts authorized to be issued therefor, amounts previously issued, amounts
being issued pursuant to this ordinance, and amounts remaining to be issued from such voted
authorizations subsequent to the date hereof being as follows:
Date
Voted
Purpose
Amount
Authorized
Previously
Issued
Bonds
Bonds
Issued
Herein
Premium
Allocated
to Voted
Authority
Amount
Unissued
11/03/15 Designing, acquiring,
constructing, renovating,
improving, and equipping City
street (primarily FM 1103 and
FM 1518), curb, sidewalk, and
gutter improvements,
demolition, repair, and
rebuilding of new and existing
streets, completing necessary or
incidental utility relocation and
drainage in connection with the
foregoing and the purchase of
land, easements, rights-of-way,
$7,000,000 $-0-
36253591.4 -2-
Date
Voted
Purpose
Amount
Authorized
Previously
Issued
Bonds
Bonds
Issued
Herein
Premium
Allocated
to Voted
Authority
Amount
Unissued
and other real property interests
necessary therefor or incidental
thereto
11/03/15 Acquiring, constructing,
improving, renovating, and
equipping public safety
facilities (to include a new fire
station), acquiring lands and
rights-of-way necessary
thereto, and completing related
landscaping
$8,000,000
WHEREAS, the Governing Body intends to issue an aggregate principal amount of
$________ in general obligation bonds the proceeds of which will be utilized for the purposes of
(i) making permanent public improvements and for public purposes as hereinafter described; and
(ii) payment of costs of issuance of the general improvement bonds; and
WHEREAS, the Governing Body hereby finds and determines that issuance of the
general obligation bonds is in the best interests of the residents of the City, now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
THAT:
SECTION 1: Authorization - Designation - Principal Amount - Purpose. General
obligation bonds of the Issuer shall be and are hereby authorized to be issued in the aggregate
principal amount of ______________________________________________ THOUSAND
AND NO/100 DOLLARS ($________) to be designated and bear the title “City of Schertz,
Texas General Obligation Bonds, Series 2016” (the Bonds), for the purpose of providing funds
for: (i) designing, acquiring, constructing, renovating, improving, and equipping City street
(primarily FM 1103 and FM 1518), curb, sidewalk, and gutter improvements, demolition, repair,
and rebuilding of new and existing streets, completing necessary or incidental utility relocation
and drainage in connection with the foregoing and the purchase of land, easements, rights-of-
way, and other real property interests necessary therefor or incidental thereto, (ii) acquiring,
constructing, improving, renovating, and equipping public safety facilities (to include a new fire
station), acquiring lands and rights-of-way necessary thereto, and completing related
landscaping, and (iii) paying the costs related to the issuance of the general obligation bonds, all
in conformity with the laws of the State of Texas, particularly Chapters 1251 and 1331, as
amended, Texas Government Code, this ordinance adopted by the Governing Body on August 2,
2016, and the election referenced in the preamble to this Ordinance.
SECTION 2: Fully Registered Bonds - Authorized Denominations - Stated
Maturities - Interest Rates – Dated Date. The Bonds are issuable in fully registered form only;
shall be dated July 1, 2016 (the Bond Date) and shall be issued in denominations of $5,000 or
36253591.4 -3-
any integral multiple thereof (within a Stated Maturity), shall be lettered “R” and numbered
consecutively from One (1) upward; and the Bonds shall become due and payable on February 1
in each of the years and in principal amounts (the Stated Maturities) and bear interest on the
unpaid principal amounts from the Bond Date, or from the most recent Interest Payment Date
(hereinafter defined) to which interest has been paid or duly provided for, to the earlier of
redemption or Stated Maturity, at the per annum rates, while Outstanding (hereinafter defined),
in accordance with the following schedule:
Years of
Stated Maturity
Principal
Amounts ($)
Interest
Rates (%)
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
The Bonds shall bear interest on the unpaid principal amounts from the Bond Date, or
from the most recent Interest Payment Date (hereinafter defined) to which interest has been paid
or duly provided for to Stated Maturity or prior redemption, while Outstanding, at the rates per
annum shown in the above schedule (calculated on the basis of a 360-day year of twelve 30-day
months). Interest on the Bonds shall be payable on February 1 and August 1 in each year (each,
an Interest Payment Date), commencing February 1, 2017, while the Bonds are Outstanding.
SECTION 3: Payment of Bonds - Paying Agent/Registrar. The principal of, premium,
if any, and the interest on the Bonds, due and payable by reason of Stated Maturity, redemption,
or otherwise, shall be payable, without exchange or collection charges to the Holder (as
hereinafter defined), appearing on the registration and transfer books maintained by the Paying
Agent/Registrar (hereinafter defined), in any coin or currency of the United States of America
which at the time of payment is legal tender for the payment of public and private debts, and
such payment of principal of, premium, if any, and interest on the Bonds shall be without
exchange or collection charges to the Holder (as hereinafter defined) of the Bonds.
36253591.4 -4-
The selection and appointment of BOKF, NA, Austin, Texas, to serve as the initial
Paying Agent/Registrar (the Paying Agent/Registrar) for the Bonds is hereby approved and
confirmed, and the Issuer agrees and covenants to cause to be kept and maintained at the
corporate trust office of the Paying Agent/Registrar books and records (the Security Register) for
the registration, payment, and transfer of the Bonds, all as provided herein, in accordance with
the terms and provisions of a Paying Agent/Registrar Agreement, attached hereto in substantially
final form as Exhibit A, and such reasonable rules and regulations as the Paying Agent/Registrar
and the Issuer may prescribe. The Issuer covenants to maintain and provide a Paying
Agent/Registrar at all times while the Bonds are Outstanding, and any successor Paying
Agent/Registrar shall be (i) a national or state banking institution, or (ii) an association or a
corporation organized and doing business under the laws of the United States of America or of
any state, authorized under such laws to exercise trust powers. Such Paying Agent/Registrar
shall be subject to supervision or examination by federal or state authority and shall be
authorized by law to serve as a Paying Agent/Registrar.
The Issuer reserves the right to appoint a successor Paying Agent/Registrar upon
providing the previous Paying Agent/Registrar with a certified copy of a resolution or ordinance
terminating such agency. Additionally, the Issuer agrees to promptly cause a written notice of
this substitution to be sent to each Holder of the Bonds by United States mail, first-class postage
prepaid, which notice shall also give the address of the corporate office of the successor Paying
Agent/Registrar.
Principal of, premium, if any, and interest on the Bonds, due and payable by reason of
Stated Maturity, redemption, or otherwise, shall be payable only to the registered owner of the
Bonds (the Holder or Holders) appearing on the Security Register maintained on behalf of the
Issuer by the Payi ng Agent/Registrar as hereinafter provided (i) on the Record Date (hereinafter
defined) for purposes of paying interest thereon, (ii) on the date of surrender of the Bonds for
purposes of receiving payment of principal thereof upon redemption of the Bonds or at the
Bonds’ Stated Maturity, and (iii) on any other date for any other purpose. The Issuer and the
Paying Agent/Registrar, and any agent of either, shall treat the Holder as the owner of a Bond for
purposes of receiving payment and all other purposes whatsoever, and neither the Issuer nor the
Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary.
Principal of and premium, if any, on the Bonds, shall be payable only upon presentation
and surrender of the Bonds to the Paying Agent/Registrar at its corporate trust office. Interest on
the Bonds shall be paid to the Holder whose name appears in the Security Register at the close of
business on the fifteenth day of the month next preceding an Interest Payment Date for the Bonds
(the Record Date) and shall be paid (i) by check sent on or prior to the appropriate date of
payment by United States mail, first-class postage prepaid, by the Paying Agent/Registrar, to the
address of the Holder appearing in the Security Register or (ii) by such other method, acceptable
to the Paying Agent/Registrar, requested in writing by the Holder at the Holder’s risk and
expense.
If the date for the payment of the principal of, premium, if any, or interest on the Bonds
shall be a Saturday, a Sunday, a legal holiday, or a day on which banking institutions in the
Issuer where the corporate trust office of the Paying Agent/Registrar is located are authorized by
law or executive order to close, then the date for such payment shall be the next succeeding day
36253591.4 -5-
which is not such a day. The payment on such date shall have the same force and effect as if
made on the original date any such payment on the Bonds was due.
In the event of a non-payment of interest on a scheduled payment date, and for thirty (30)
days thereafter, a new record date for such interest payment (a Special Record Date) will be
established by the Paying Agent/Registrar, if and when funds for the payment of such interest
have been received from the Issuer. Notice of the Special Record Date and of the scheduled
payment date of the past due interest (the Special Payment Date--which shall be fifteen (15) days
after the Special Record Date) shall be sent at least five (5) business days prior to the Special
Record Date by United States mail, first-class postage prepaid, to the address of each Holder
appearing on the Security Register at the close of business on the last business day next
preceding the date of mailing of such notice.
SECTION 4: Redemption.
A. Mandatory Redemption. The Bonds stated to mature on February 1, 20__ and
February 1, 20__, are referred to herein as the “Term Bonds”. The Term Bonds are subject to
mandatory sinking fund redemption prior to their stated maturities from money required to be
deposited in the Bond Fund for such purpose and shall be redeemed in part, by lot or other
customary method, at the principal amount thereof plus accrued interest to the date of
redemption in the following principal amounts on February 1 in each of the years as set forth
below:
Term Bonds
Stated to Mature
on February 1, 20__,
Term Bonds
Stated to Mature
on February 1, 20__,
Year
Principal
Amount ($) Year
Principal
Amount ($)
*Payable at Stated Maturity
The principal amount of a Term Bond required to be redeemed pursuant to the operation
of such mandatory redemption provisions shall be reduced, at the option of the Issuer, by the
principal amount of any Term Bonds of such Stated Maturity which, at least fifty (50) days prior
to the mandatory redemption date (1) shall have been defeased or acquired by the Issuer and
delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and
canceled by the Paying Agent/Registrar at the request of the Issuer with money in the Bond
Fund, or (3) shall have been redeemed pursuant to the optional redemption provisions set forth
below and not theretofore credited against a mandatory redemption requirement.
36253591.4 -6-
B. Optional Redemption of Bonds. The Bonds having Stated Maturities on and after
February 1, 2027 shall be subject to redemption prior to Stated Maturity, at the option of the
Issuer, on February 1, 2026, or on any date thereafter, in whole or in part, in principal amounts of
$5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and
by lot by the Paying Agent/Registrar), at the redemption price of par plus accrued interest to the
date of redemption.
C. Exercise of Redemption Option. At least forty-five (45) days prior to a date set
for the redemption of Bonds (unless a shorter notification period shall be satisfactory to the
Paying Agent/Registrar), the Issuer shall notify the Paying Agent/Registrar of its decision to
exercise the right to redeem the Bonds, the principal amount of each Stated Maturity to be
redeemed, and the date set for the redemption thereof. The decision of the Issuer to exercise the
right to redeem the Bonds shall be entered in the minutes of the governing body of the Issuer.
D. Selection of Bonds for Redemption. If less than all Outstanding Bonds of the
same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall
select at random and by lot the Bonds to be redeemed, provided that if less than the entire
principal amount of a Bond is to be redeemed, the Paying Agent/Registrar shall treat such Bond
then subject to redemption as representing the number of Bonds Outstanding which is obtained
by dividing the principal amount of such Bond by $5,000.
E. Notice of Redemption. Not less than thirty (30) days prior to a redemption date
for the Bonds, the Paying Agent/Registrar shall cause a notice of redemption to be sent by
United States mail, first-class postage prepaid, in the name of the Issuer and at the Issuer’s
expense, by the Paying Agent/Registrar to each Holder of a Bond to be redeemed, in whole or in
part, at the address of the Holder appearing on the Security Register at the close of business on
the business day next preceding the date of mailing such notice, and any notice of redemption so
mailed shall be conclusively presumed to have been duly given irrespective of whether received
by the Holder. This notice may also be published once in a financial publication, journal, or
reporter of general circulation among securities dealers in the City of New York, New York
(including, but not limited to, The Bond Buyer and The Wall Street Journal), or in the State of
Texas (including, but not limited to, The Texas Bond Reporter).
All notices of redemption shall (i) specify the date of redemption for the Bonds,
(ii) identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be
redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state
that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due
and payable on the redemption date specified, and the interest thereon, or on the portion of the
principal amount thereof to be redeemed, shall cease to accrue from and after the redemption
date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount
thereof to be redeemed, shall be made at the corporate trust office of the Paying Agent/Registrar
only upon presentation and surrender thereof by the Holder.
If a Bond is subject by its terms to redemption and has been called for redemption and
notice of redemption thereof has been duly given or waived as herein provided, such Bond (or
the principal amount thereof to be redeemed) so called for redemption shall become due and
payable, and if money sufficient for the payment of such Bonds (or of the principal amount
36253591.4 -7-
thereof to be redeemed) at the then applicable redemption price is held for the purpose of such
payment by the Paying Agent/Registrar, then on the redemption date designated in such notice,
interest on the Bonds (or the principal amount thereof to be redeemed) called for redemption
shall cease to accrue and such Bonds shall not be deemed to be Outstanding in accordance with
the provisions of this Ordinance.
F. Transfer/Exchange of Bonds. Neither the Issuer nor the Paying Agent/Registrar
shall be required (1) to transfer or exchange any Bond during a period beginning forty-five (45)
days prior to the date fixed for redemption of the Bonds or (2) to transfer or exchange any Bond
selected for redemption, provided, however, such limitation of transfer shall not be applicable to
an exchange by the Holder of the unredeemed balance of a Bond which is subject to redemption
in part.
SECTION 5: Execution - Registration. The Bonds shall be executed on behalf of the
Issuer by its Mayor or Mayor Pro Tem under the seal of the Issuer reproduced or impressed
thereon and attested by its City Secretary. The signature of any of said officers on the Bonds
may be manual or facsimile. Bonds bearing the manual or facsimile signatures of individuals
who were, at the time of the Bond Date, the proper officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or either of them shall cease to hold such offices prior to
the delivery of the Bonds to the Purchasers (hereinafter defined), all as authorized and provided
in Chapter 1201, as amended, Texas Government Code.
No Bond shall be entitled to any right or benefit under this Ordinance, or be valid or
obligatory for any purpose, unless there appears on such Bond either a certificate of registration
substantially in the form provided in Section 8C, executed by the Comptroller of Public
Accounts of the State of Texas or his duly authorized agent by manual signature, or a certificate
of registration substantially in the form provided in Section 8D, executed by the Paying
Agent/Registrar by manual signature, and either such certificate upon any Bond shall be
conclusive evidence, and the only evidence, that such Bond has been duly certified or registered
and delivered.
SECTION 6: Registration - Transfer - Exchange of Bonds - Predecessor Bonds. A
Security Register relating to the registration, payment, transfer, or exchange of the Bonds shall at
all times be kept and maintained by the Issuer at the corporate trust office of the Paying
Agent/Registrar, and the Paying Agent/Registrar shall obtain, record, and maintain in the
Security Register the name and address of each Holder of the Bonds issued under and pursuant to
the provisions of this Ordinance. Any Bond may, in accordance with its terms and the terms
hereof, be transferred or exchanged for Bonds of other authorized denominations upon the
Security Register by the Holder, in person or by his duly authorized agent, upon surrender of
such Bond to the Paying Agent/Registrar for cancellation, accompanied by a written instrument
of transfer or request for exchange duly executed by the Holder or by his duly authorized agent,
in form satisfactory to the Paying Agent/Registrar.
Upon surrender for transfer of any Bond at the corporate trust office of the Paying
Agent/Registrar, the Paying Agent/Registrar shall register and deliver, in the name of the
designated transferee or transferees, one or more new Bonds executed on behalf of, and
36253591.4 -8-
furnished by, the Issuer of authorized denominations and having the same Stated Maturity and of
a like interest rate and aggregate principal amount as the Bond or Bonds surrendered for transfer.
At the option of the Holder, Bonds may be exchanged for other Bonds of authorized
denominations and having the same Stated Maturity, bearing the same rate of interest, and of like
aggregate principal amount as the Bonds surrendered for exchange, upon surrender of the Bonds
to be exchanged at the corporate trust office of the Paying Agent/ Registrar. Whenever any
Bonds are so surrendered for exchange, the Issuer shall execute and the Paying Agent/Registrar
shall register and deliver new Bonds executed on behalf of, and furnished by, the Issuer to the
Holder requesting the exchange.
All Bonds issued upon any transfer or exchange of Bonds shall be delivered at the
corporate trust office of the Paying Agent/Registrar, or be sent by United States registered mail
to the Holder at his request, risk, and expense, and upon the delivery thereof, the same shall be
the valid and binding obligations of the Issuer, evidencing the same obligation to pay, and
entitled to the same benefits under this Ordinance, as the Bonds surrendered upon such transfer
or exchange.
All transfers or exchanges of Bonds pursuant to this Section shall be made without
expense or service charge to the Holder, except as otherwise herein provided, and except that the
Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange
of any tax or other governmental charges required to be paid with respect to such transfer or
exchange.
Bonds canceled by reason of an exchange or transfer pursuant to the provisions hereof are
hereby defined to be “Predecessor Bonds”, evidencing all or a portion, as the case may be, of the
same debt evidenced by the new Bond or Bonds registered and delivered in the exchange or
transfer therefor. Additionally, the term Predecessor Bonds shall include any Bond registered
and delivered pursuant to Section 16 in lieu of a mutilated, lost, destroyed, or stolen Bond which
shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond.
SECTION 7: Initial Bond. The Bonds herein authorized shall be issued initially either
(i) as a fully registered Bond in the total principal amount of $________ with principal
installments to become due and payable as provided in Section 2 and numbered T-1, or (ii) as
one (1) fully registered Bond for each year of Stated Maturity in the applicable principal amount,
interest rate, and denomination and to be numbered consecutively from T-1 and upward (the
Initial Bond) and, in either case, the Initial Bond shall be registered in the name of the Purchasers
or the designee thereof. The Initial Bond shall be the Bonds submitted to the Office of the
Attorney General of the State of Texas for approval and certified and registered by the Office of
the Comptroller of Public Accounts of the State of Texas and delivered to the Purchasers. Any
time after the delivery of the Initial Bond to the Purchasers, the Paying Agent/Registrar, upon
written instructions from the Purchasers, or the designee thereof, shall cancel the Initial Bond
delivered hereunder and exchange therefor definitive Bonds of like kind and of authorized
denominations, Stated Maturities, principal amounts bearing applicable interest rates and shall be
lettered “R” and numbered consecutively from one (1) upward for transfer and delivery to the
Holders named and at the addresses identified therefor; all pursuant to and in accordance with
36253591.4 -9-
and pursuant to such written instructions from the Purchasers, or the designee thereof, and such
other information and documentation as the Paying Agent/Registrar may reasonably require.
SECTION 8: Forms.
A. Forms Generally. The Bonds, the Registration Certificate of the Comptroller of
Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar,
and the form of Assignment to be printed on each of the Bonds shall be substantially in the forms
set forth in this Section with such appropriate insertions, omissions, substitutions, and other
variations as are permitted or required by this Ordinance and may have such letters, numbers, or
other marks of identification (including insurance legends in the event the Bonds, or any Stated
Maturities thereof, are insured and any reproduction of an opinion of Bond Counsel (hereinafter
referenced)) and identifying numbers and letters of the Committee on Uniform Securities
Identification Procedures of the American Bankers Association) and such legends and
endorsements (including insurance legends and any reproduction of an opinion of Bond Counsel)
thereon as may, consistent herewith, be established by the Issuer or determined by the officers
executing the Bonds as evidenced by their execution thereof. Any portion of the text of any
Bond may be set forth on the reverse thereof, with an appropriate reference thereto on the face of
the Bond.
The definitive Bonds shall be printed, lithographed, or engraved, produced by any
combination of these methods, or produced in any other similar manner, all as determined by the
officers executing the Bonds as evidenced by their execution thereof, but the Initial Bond
submitted to the Attorney General of the State of Texas may be typewritten or photocopied or
otherwise reproduced.
[The remainder of this page intentionally left blank.]
36253591.4
B. Form of Definitive Bond.
REGISTERED
REGISTERED PRINCIPAL AMOUNT
NO. _____ $
United States of America
State of Texas
Counties of Bexar, Comal, and Guadalupe
CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION BONDS, SERIES 2016
Dated Date:
July 1, 2016
Interest Rate:
Stated Maturity: CUSIP No.:
REGISTERED OWNER: _________________________________________________________
PRINCIPAL AMOUNT: _______________________________________________ DOLLARS
The City of Schertz, Texas (the Issuer), a body corporate and a municipal corporation
located in the Counties of Bexar, Comal, and Guadalupe, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner
named above (the Holder), or the registered assigns thereof, on the Stated Maturity date specified
above, the Principal Amount specified above (or so much thereof as shall not have been paid
upon prior redemption) and to pay interest on the unpaid Principal Amount hereof (computed on
the basis of a 360-day year of twelve 30-day months) from the Bond Date or from the most
recent Interest Payment Date (hereinafter defined) to which interest has been paid or duly
provided for until such Principal Amount has become due and payment thereof has been made or
duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rate of
interest specified above; such interest being payable on February 1 and August 1 of each year
(each, an Interest Payment Date), commencing February 1, 2017.
Principal and premium, if any, of this Bond shall be payable to the Registered Owner
hereof (the Holder), upon presentation and surrender, at the corporate trust office of the Paying
Agent/Registrar executing the registration certificate appearing hereon, or its successor. Interest
shall be payable to the Holder of this Bond (or one or more Predecessor Bonds, as defined in the
Ordinance hereinafter referenced) whose name appears on the Security Register maintained by
the Paying Agent/Registrar at the close of business on the Record Date, which is the fifteenth
day of the month next preceding the Interest Payment Date. All payments of principal of,
premium, if any, and interest on this Bond shall be in any coin or currency of the United States
of America which at the time of payment is legal tender for the payment of public and private
debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the
appropriate date of payment by United States mail, first-class postage prepaid, to the Holder
hereof at the address appearing in the Security Register or by such other method, acceptable to
the Paying Agent/Registrar, requested by the Holder hereof at the Holder’s risk and expense.
36253591.4 -11-
This Bond is one of the series specified in its title issued in the aggregate principal
amount of $________ (the Bonds) pursuant to an ordinance adopted by the Governing Body of
the Issuer (the Ordinance), for the purpose of (i) designing, acquiring, constructing, renovating,
improving, and equipping City street (primarily FM 1103 and FM 1518), curb, sidewalk, and
gutter improvements, demolition, repair, and rebuilding of new and existing streets, completing
necessary or incidental utility relocation and drainage in connection with the foregoing and the
purchase of land, easements, rights-of-way, and other real property interests necessary therefor
or incidental thereto, (ii) acquiring, constructing, improving, renovating, and equipping public
safety facilities (to include a new fire station), acquiring lands and rights-of-way necessary
thereto, and completing related landscaping, and (iii) paying the costs related to the issuance of
the general obligation bonds, all in conformity with the laws of the State of Texas, particularly
Chapters 1251 and 1331 as amended, Texas Government Code, an election held in the Issuer on
November 3, 2015, and the Ordinance.
As specified in the Ordinance, the Bonds stated to mature on February 1, 20__ and
February 1, 20__, are referred to herein as the “Term Bonds”. The Term Bonds are subject to
mandatory sinking fund redemption prior to their stated maturities from money required to be
deposited in the Bond Fund for such purpose and shall be redeemed in part, by lot or other
customary method, at the principal amount thereof plus accrued interest to the date of
redemption in the following principal amounts on February 1 in each of the years as set forth
below:
Term Bonds
Stated to Mature
on February 1, 20__,
Term Bonds
Stated to Mature
on February 1, 20__,
Year
Principal
Amount ($) Year
Principal
Amount ($)
*Payable at Stated Maturity
The principal amount of a Term Bond required to be redeemed pursuant to the operation
of such mandatory redemption provisions shall be reduced, at the option of the Issuer, by the
principal amount of any Term Bonds of such Stated Maturity which, at least fifty (50) days prior
to the mandatory redemption date (1) shall have been defeased or acquired by the Issuer and
delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and
canceled by the Paying Agent/Registrar at the request of the Issuer with money in the Bond
Fund, or (3) shall have been redeemed pursuant to the optional redemption provisions set forth
below and not theretofore credited against a mandatory redemption requirement.
As specified in the Ordinance, the Bonds having Stated Maturities on and after
February 1, 2027 shall be subject to redemption prior to Stated Maturity, at the option of the
Issuer, on February 1, 2026, or on any date thereafter, in whole or in part, in principal amounts of
36253591.4 -12-
$5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and
by lot by the Paying Agent/Registrar), at the redemption price of par plus accrued interest to the
date of redemption and upon thirty (30) days prior written notice being given by United States
mail, first-class postage prepaid, to Holders of the Bonds to be redeemed, and subject to the
terms and provisions relating thereto contained in the Ordinance. If this Bond is subject to
redemption prior to Stated Maturity and is in a denomination in excess of $5,000, portions of the
principal sum hereof in installments of $5,000 or any integral multiple thereof may be redeemed,
and, if less than all of the principal sum hereof is to be redeemed, there shall be issued, without
charge therefor, to the Holder hereof, upon the surrender of this Bond to the Paying
Agent/Registrar at its corporate trust office, a new Bond or Bonds of like Stated Maturity and
interest rate in any authorized denominations provided in the Ordinance for the then unredeemed
balance of the principal sum hereof.
If this Bond (or any portion of the principal sum hereof) shall have been duly called for
redemption and notice of such redemption has been duly given, then upon such redemption date
this Bond (or the portion of the principal sum hereof to be redeemed) shall become due and
payable, and, if the money for the payment of the redemption price and the interest accrued on
the principal amount to be redeemed to the date of redemption is held for the purpose of such
payment by the Paying Agent/Registrar, interest shall cease to accrue and be payable hereon
from and after the redemption date on the principal amount hereof to be redeemed. If this Bond
is called for redemption, in whole or in part, the Issuer or the Paying Agent/Registrar shall not be
required to issue, transfer, or exchange this Bond within forty-five (45) days of the date fixed for
redemption; provided, however, such limitation of transfer shall not be applicable to an exchange
by the Holder of the unredeemed balance hereof in the event of its redemption in part.
The Bonds of this series are payable from the proceeds of an annual ad valorem tax
levied within the limitations prescribed by law, upon all taxable property within the Issuer.
Reference is hereby made to the Ordinance, a copy of which is on file in the corporate
trust office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by his
acceptance hereof hereby assents, for definitions of terms; the description of and the nature and
extent of the tax levied for the payment of the Bonds; the terms and conditions relating to the
transfer or exchange of this Bond; the conditions upon which the Ordinance may be amended or
supplemented with or without the consent of the Holders; the rights, duties, and obligations of
the Issuer and the Paying Agent/Registrar; the terms and provisions upon which this Bond may
be redeemed or discharged at or prior to its Stated Maturity and deemed to be no longer
Outstanding thereunder; and for the other terms and provisions thereof. Capitalized terms used
herein have the same meanings assigned in the Ordinance.
As provided in the Ordinance and subject to certain limitations contained therein, this
Bond is transferable on the Security Register of the Issuer, upon presentation and surrender of
this Bond for transfer at the corporate trust office of the Paying Agent/Registrar, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory to the Paying
Agent/Registrar duly executed by the Holder hereof, or his duly authorized agent, and thereupon
one or more new fully registered Bonds of the same Stated Maturity, of authorized
denominations, bearing the same rate of interest, and of the same aggregate principal amount will
be issued to the designated transferee or transferees.
36253591.4 -13-
The Issuer and the Paying Agent/Registrar, and any agent of either, shall treat the Holder
hereof whose name appears on the Security Register (i) on the Record Date as the owner hereof
for purposes of receiving payment of interest hereon, (ii) on the date of surrender of this Bond as
the owner hereof for purposes of receiving payment of principal hereof at its Stated Maturity or
its redemption, in whole or in part, and (iii) on any other date as the owner hereof for all other
purposes, and neither the Issuer nor the Paying Agent/Registrar, or any such agent of either, shall
be affected by notice to the contrary. In the event of a non-payment of interest on a scheduled
payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a
Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for
the payment of such interest have been received from the Issuer. Notice of the Special Record
Date and of the scheduled payment date of the past due interest (the Special Payment Date -
which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5)
business days prior to the Special Record Date by United States mail, first-class postage prepaid,
to the address of each Holder appearing on the Security Register at the close of business on the
last business day next preceding the date of mailing of such notice.
It is hereby certified, covenanted, and represented that all acts, conditions, and things
required to be performed, exist, and be done precedent to or in the issuance of this Bond in order
to render the same a legal, valid, and binding obligation of the Issuer have been performed, exist,
and have been done, in regular and due time, form, and manner, as required by the laws of the
State of Texas and the Ordinance, and that the issuance of the Bonds does not exceed any
constitutional or statutory limitation; and that due provision has been made for the payment of
the principal of, premium if any, and interest on the Bonds by the levy of a tax as aforestated. In
case any provision in this Bond or any application thereof shall be deemed invalid, illegal, or
unenforceable, the validity, legality, and enforceability of the remaining provisions and
applications shall not in any way be affected or impaired thereby. The terms and provisions of
this Bond and the Ordinance shall be construed in accordance with and shall be governed by the
laws of the State of Texas.
36253591.4 -14-
IN WITNESS WHEREOF, the Issuer has caused this Bond to be duly executed under its
official seal.
CITY OF SCHERTZ, TEXAS
____________________________________
Mayor
ATTEST:
_____________________________
City Secretary
(CITY SEAL)
[The remainder of this page intentionally left blank.]
36253591.4 -15-
C. *Form of Registration Certificate of Comptroller of Public Accounts to Appear on
Initial Bond only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER OF
PUBLIC ACCOUNTS
THE STATE OF TEXAS
§
§
§
§
REGISTER NO.
I HEREBY CERTIFY that this Bond has been examined, certified as to validity and
approved by the Attorney General of the State of Texas, and duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this ____________________.
____________________________________
Comptroller of Public Accounts
of the State of Texas
(SEAL)
*NOTE TO PRINTER: Do Not Print on Definitive Bonds.
D. *Form of Certificate of Paying Agent/Registrar to Appear on Definitive Bonds
Only.
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Bond has been duly issued under the provisions of the within-mentioned Ordinance;
the Bond or Bonds of the above-entitled and designated series originally delivered having been
approved by the Attorney General of the State of Texas and registered by the Comptroller of
Public Accounts, as shown by the records of the Paying Agent/Registrar.
Registered this date:
____________________________________
BOKF, NA, Austin, Texas, as Paying
Agent/Registrar
By: _______________________________
Authorized Signature
*NOTE TO PRINTER: Print on Definitive Bonds.
36253591.4 -16-
E. Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto
(Print or typewrite name, address, and zip code of transferee): ____________________________
______________________________________________________________________________
(Social Security or other identifying number): ________________________________________
the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints
____________________attorney to transfer the within Bond on the books kept for registration
thereof, with full power of substitution in the premises.
DATED: ____________________________
________________________________________________
NOTICE: The signature on this assignment must
correspond with the name of the registered owner as it
appears on the face of the within Bond in every particular.
Signature guaranteed:
____________________________________
F. Initial Bond. The Initial Bond shall be in the form set forth in paragraph B of this
Section, except that the form of the single fully registered Initial Bond shall be modified as
follows:
(1) immediately under the name of the bond the headings “Interest Rate ” and
“Stated Maturity ” shall both be completed “as shown below”;
(2) the first two paragraphs shall read as follows:
Registered Owner: ______________________________________________________________
Principal Amount: _______________________________________________________________
The City of Schertz, Texas (the Issuer), a body corporate and municipal corporation
located in the Counties of Bexar, Comal, and Guadalupe, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner
named above (the Holder), or the registered assigns thereof, the Principal Amount specified
above stated to mature on the first day of February in each of the years and in principal amounts
and bearing interest at per annum rates in accordance with the following schedule:
Years of Stated Maturity Principal Amounts ($) Interest Rates (%)
(Information to be inserted from schedule in Section 2 hereof).
36253591.4 -17-
(or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the
unpaid Principal Amounts hereof from the Bond Date specified above or from the most recent
Interest Payment Date (hereinafter defined) to which interest has been paid or duly provided for
until the Principal Amount has become due and payment thereof has been made or duly provided
for, to the earlier of redemption or Stated Maturity, at the per annum rates of interest specified
above computed on the basis of a 360-day year of twelve 30-day months; such interest being
payable on February 1 and August 1 of each year (each, an Interest Payment Date) commencing
February 1, 2017.
Principal of this Bond shall be payable to the Holder, upon presentation and surrender to
Stated Maturity or prior redemption, while Outstanding, at the corporate trust office of BOKF,
NA, Austin, Texas (the Paying Agent/Registrar). Interest shall be payable to the Holder of this
Bond whose name appears on the Security Register maintained by the Paying Agent/Registrar at
the close of business on the Record Date, which is the fifteenth day of the month next preceding
the Interest Payment Date. All payments of principal of, premium, if any, and interest on this
Bond shall be in any coin or currency of the United States of America which at the time of
payment is legal tender for the payment of public and private debts. Interest shall be paid by the
Paying Agent/Registrar by check sent on or prior to the appropriate date of payment by United
States mail, first-class postage prepaid, to the Holder hereof at the address appearing in the
Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested
by the Holder hereof at the Holder’s risk and expense.
G. Insurance Legend. If bond insurance is obtained by the Issuer or the Purchasers
(hereinafter defined), the Definitive Bonds and the Initial Bond shall bear an appropriate legend
as provided by the insurer.
SECTION 9: Definitions. For all purposes of this Ordinance (as defined below), except
as otherwise expressly provided or unless the context otherwise requires: (i) the terms defined in
this Section have the meanings assigned to them in this Section, certain terms used in
Sections 18 and 36 of this Ordinance have the meanings assigned to them in such Sections, and
all such terms, include the plural as well as the singular; (ii) all references in this Ordinance to
designated “Sections” and other subdivisions are to the designated Sections and other
subdivisions of this Ordinance as originally adopted; and (iii) the words “herein”, “hereof”, and
“hereunder” and other words of similar import refer to this Ordinance as a whole and not to any
particular Section or other subdivision.
A. The term Authorized Officials shall mean the Mayor, Mayor Pro Tem, City
Manager, Director of Finance, and/or the City Secretary.
B. The term Bond Fund shall mean the special fund created and established by the
provisions of Section 10 of this Ordinance.
C. The term Bonds shall mean the $________ “CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION BONDS, SERIES 2016” authorized by this Ordinance.
36253591.4 -18-
D. The term Certificates shall mean the $____________ “CITY OF SCHERTZ,
TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2016A”.
E. The term Closing Date shall mean the date of physical delivery of the Initial Bond
in exchange for the payment in full by the Purchasers.
F. The term Debt Service Requirements shall mean, as of any particular date of
computation, with respect to any obligations and with respect to any period, the aggregate of the
amounts to be paid or set aside by the Issuer as of such date or in such period for the payment of
the principal of, premium, if any, and interest (to the extent not capitalized) on such obligations;
assuming, in the case of obligations without a fixed numerical rate, that such obligations bear
interest at the maximum rate permitted by the terms thereof and further assuming in the case of
obligations required to be redeemed or prepaid as to principal prior to Stated Maturity, the
principal amounts thereof will be redeemed prior to Stated Maturity in accordance with the
mandatory redemption provisions applicable thereto.
G. The term Depository shall mean an official depository bank of the Issuer.
H. The term Government Securities, as used herein, shall mean: (i) direct noncallable
obligations of the United States, including obligations that are unconditionally guaranteed by, the
United States of America; (ii) noncallable obligations of an agency or instrumentality of the
United States, including obligations that are unconditionally guaranteed or insured by the agency
or instrumentality and that, on the date the governing body of the issuer adopts or approves the
proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a
nationally recognized investment rating firm not less than “AAA” or its equivalent;
(iii) noncallable obligations of a state or an agency or a county, municipality, or other political
subdivision of a state that have been refunded and that, on the date the governing body of the
issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated
as to investment quality by a nationally recognized investment rating firm not less than “AAA”
or its equivalent, or (iv) any additional securities and obligations hereafter authorized by the laws
of the State of Texas as eligible for use to accomplish the discharge of obligations such as the
Bonds.
I. The term Holder or Holders shall mean the registered owner, whose name
appears in the Security Register, for any Bond.
J. The term Interest Payment Date shall mean the date interest is payable on the
Bonds, being February 1 and August 1 of each year, commencing February 1, 2017, while any of
the Bonds remain Outstanding.
K. The term Issuer shall mean the City of Schertz, Texas, located in the Counties of
Bexar, Comal, and Guadalupe, Texas and, where appropriate, the Governing Body of the Issuer.
L. The term Ordinance shall mean this ordinance adopted by the Governing Body of
the Issuer on August 2, 2016.
36253591.4 -19-
M. The term Outstanding when used in this Ordinance with respect to Bonds shall
mean, as of the date of determination, all Bonds issued and delivered under this Ordinance,
except:
(1) those Bonds canceled by the Paying Agent/Registrar or delivered to the
Paying Agent/Registrar for cancellation;
(2) those Bonds for which payment has been duly provided by the Issuer in
accordance with the provisions of Section 19 of this Ordinance; and
(3) those Bonds that have been mutilated, destroyed, lost, or stolen and
replacement Bonds have been registered and delivered in lieu thereof as provided in
Section 16 of this Ordinance.
N. The term Purchasers shall mean the initial purchaser or purchasers of the Bonds
named in Section 17 of this Ordinance.
O. The term Stated Maturity shall mean the annual principal payments of the Bonds
payable on February 1 of each year the Bonds are Outstanding, as set forth in Section 2 of this
Ordinance.
SECTION 10: Bond Fund; Investments. For the purpose of paying the interest on and to
provide a sinking fund for the payment, redemption, and retirement of the Bonds, there shall be
and is hereby created a special fund to be designated “GENERAL OBLIGATION BONDS,
SERIES 2016, INTEREST AND SINKING FUND” (the Bond Fund), which fund shall be kept
and maintained at the Depository, and money deposited in such fund shall be used for no other
purpose and shall be maintained as provided in Section 18. Authorized Officials of the Issuer are
hereby authorized and directed to make withdrawals from the Bond Fund sufficient to pay the
purchase price or the amount of principal of, premium, if any, and interest on the Bonds as the
same become due and payable and shall cause to be transferred to the Paying Agent/Registrar
from money on deposit in the Bond Fund an amount sufficient to pay the amount of principal
and/or interest stated to mature on the Bonds, such transfer of funds to the Paying
Agent/Registrar to be made in such manner as will cause immediately available funds to be
deposited with the Paying Agent/Registrar on or before the business day next preceding each
interest and principal payment date for the Bonds.
Pending the transfer of funds to the Paying Agent/Registrar, money deposited in any fund
created and established pursuant to the provisions of this Ordinance may, at the option of the
Issuer, be placed in time deposits, certificates of deposit, guaranteed investment contracts, or
similar contractual agreements as permitted by the provisions of the Public Funds Investment
Act, as amended, Chapter 2256, Texas Government Code, secured (to the extent not insured by
the Federal Deposit Insurance Corporation) by obligations of the type hereinafter described, or
be invested, as authorized by any law, including investments held in book-entry form, in
securities including, but not limited to, direct obligations of the United States of America,
obligations guaranteed or insured by the United States of America, which, in the opinion of the
Attorney General of the United States, are backed by its full faith and credit or represent its
general obligations, or invested in indirect obligations of the United States of America,
36253591.4 -20-
including, but not limited to, evidences of indebtedness issued, insured or guaranteed by such
governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for
Cooperatives, Federal Home Loan Banks, Government National Mortgage Association, Farmers
Home Administration, Federal Home Loan Mortgage Association, Small Business
Administration, or Federal Housing Association; provided that all such deposits and investments
shall be made in such a manner that the money required to be expended from any fund will be
available at the proper time or times. All interest and income derived from deposits and
investments in any fund established pursuant to the provisions of this Ordinance shall be credited
to, and any losses debited to, such fund. All such investments shall be sold promptly when
necessary to prevent any default in connection with the Bonds.
SECTION 11: Levy of Taxes; Surplus Bond Proceeds. To provide for the payment of the
Debt Service Requirements on the Bonds being (i) the interest on the Bonds, and (ii) sinking
fund for their redemption at Stated Maturity or a sinking fund of 2% (whichever amount shall be
the greater), there shall be and there is hereby levied for the current fiscal year and each
succeeding year thereafter while the Bonds or any interest thereon shall remain Outstanding, a
sufficient tax, within the limitations prescribed by law, on each one hundred dollars’ valuation of
taxable property in the Issuer, adequate to pay such Debt Service Requirements, full allowance
being made for delinquencies and costs of collection; said tax shall be assessed and collected
each year and applied to the payment of the Debt Service Requirements, and the same shall not
be diverted to any other purpose. The taxes so levied and collected shall be paid into the Bond
Fund and are thereafter pledged to the payment of the Bonds. The Governing Body hereby
declares its purpose and intent to provide and levy a tax legally and fully sufficient to pay such
Debt Service Requirements, it having been determined that the existing and available taxing
authority of the Issuer for such purpose is adequate to permit a legally sufficient tax in
consideration of all other outstanding indebtedness and other obligations of the Issuer.
Accrued interest received from the Purchasers of the Bonds shall be deposited to the
Bond Fund and ad valorem taxes levied and collected for the benefit of the Bonds shall be
deposited to the Bond Fund. In addition, any surplus proceeds from the sale of the Bonds,
including investment income thereon, not expended for authorized purposes shall be deposited in
the Bond Fund, and such amounts so deposited shall reduce the sum otherwise required to be
deposited in the Bond Fund from ad valorem taxes.
SECTION 12: Security for Funds. All money on deposit in the funds for which this
Ordinance makes provision (except any portion thereof as may be at any time properly invested
as provided herein) 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 money on deposit in such funds shall
be used only for the purposes permitted by this Ordinance.
SECTION 13: Remedies in Event of Default. In addition to all the rights and remedies
provided by the laws of the State of Texas, the Issuer covenants and agrees particularly that in
the event the Issuer: (a) defaults in the payments to be made to the Bond Fund; or (b) defaults in
the observance or performance of any other of the covenants, conditions, or obligations set forth
in this Ordinance, the Holders of any of the Bonds shall be entitled to seek a writ of mandamus
issued by a court of proper jurisdiction compelling and requiring the Governing Body of the
36253591.4 -21-
Issuer and other officers of the Issuer to observe and perform any covenant, condition, or
obligation prescribed in this Ordinance.
No delay or omission to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a waiver of any such default or
acquiescence therein, and every such right and power may be exercised from time to time and as
often as may be deemed expedient. The specific remedies herein provided shall be cumulative of
all other existing remedies and the specification of such remedies shall not be deemed to be
exclusive.
SECTION 14: Notices to Holders-Waiver. Wherever this Ordinance provides for notice
to Holders of any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and sent by United States mail, first-class postage prepaid, to
the address of each Holder appearing in the Security Register at the close of business on the
business day next preceding the mailing of such notice.
In any case where notice to Holders is given by mail, neither the failure to mail such
notice to any particular Holders, nor any defect in any notice so mailed, shall affect the
sufficiency of such notice with respect to all other Holders. Where this Ordinance provides for
notice in any manner, such notice may be waived in writing by the Holder entitled to receive
such notice, either before or after the event with respect to which such notice is given, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.
SECTION 15: Cancellation. All Bonds surrendered for payment, redemption, transfer,
exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly
canceled by it and, if surrendered to the Issuer, shall be delivered to the Paying Agent/Registrar
and, if not already canceled, shall be promptly canceled by the Paying Agent/Registrar. The
Issuer may at any time deliver to the Paying Agent/Registrar for cancellation any Bonds
previously certified or registered and delivered which the Issuer may have acquired in any
manner whatsoever, and all Bonds so delivered shall be promptly canceled by the Paying
Agent/Registrar. All canceled Bonds held by the Paying Agent/Registrar shall be destroyed as
directed by the Issuer.
SECTION 16: Mutilated - Destroyed - Lost and Stolen Bonds. If: (i) any mutilated Bond
is surrendered to the Paying Agent/Registrar, or the Issuer and the Paying Agent/Registrar
receive evidence to their satisfaction of the destruction, loss, or theft of any Bond; and (ii) there
is delivered to the Issuer and the Paying Agent/Registrar such security or indemnity as may be
required to save each of them harmless, then, in the absence of notice to the Issuer or the Paying
Agent/Registrar that such Bond has been acquired by a bona fide purchaser, the Issuer shall
execute and, upon the Issuer’s request, the Paying Agent/Registrar shall register and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Bond, a new Bond of the
same Stated Maturity and interest rate and of like tenor and principal amount, bearing a number
not contemporaneously Outstanding.
36253591.4 -22-
In case any such mutilated, destroyed, lost, or stolen Bond has become or is about to
become due and payable, the Issuer in its discretion may, instead of issuing a new Bond, pay
such Bond. Upon the issuance of any new Bond, or payment in lieu thereof, under this Section,
the Issuer may require payment by the Holder of a sum sufficient to cover any tax or other
governmental charge imposed in relation thereto and any other expenses and charges (including
attorney’s fees and the fees and expenses of the Paying Agent/Registrar) connected therewith.
Every new Bond issued pursuant to this Section in lieu of any mutilated, destroyed, lost, or
stolen Bond shall constitute a replacement of the prior obligation of the Issuer, whether or not the
mutilated, destroyed, lost, or stolen Bond shall be at any time enforceable by anyone, and shall
be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding
Bonds. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement and payment of mutilated, destroyed,
lost, or stolen Bonds.
SECTION 17: Sale of Bonds at Competitive Sale; Official Statement; Proceeds of Sale.
The Bonds authorized by this Ordinance are hereby sold by the Issuer to ___________________,
_____________, ______________, at a competitive sale (the Purchasers, having all of the
rights, duties, and obligations of a Holder), in accordance with the provisions of an Official Bid
Form (the “Official Bid Form”), dated August 2, 2016, attached hereto as Exhibit B and
incorporated herein by reference as a part of this Ordinance for all purposes, at the price of par,
plus a premium of $____________ (including an excess bid premium of $____________), less
underwriting discount of $____________, plus accrued interest to the date of initial delivery of
the Bonds to the Purchasers, and is hereby approved and confirmed. The Initial Bond shall be
registered in the name of ____________________________________. It is hereby officially
found, determined, and declared that the Purchasers are the highest bidder for the Bonds whose
bid, received as a result of invitations for competitive bids in compliance with applicable law,
produced the lowest true interest cost to the Issuer. The pricing and terms of the sale of the
Bonds are hereby found and determined to be the most advantageous reasonably obtainable by
the Issuer.
Furthermore, the Issuer hereby ratifies, confirms, and approves in all respects (i) the
Issuer’s prior determination that the Preliminary Official Statement was, as of its date, “deemed
final” in accordance with the Rule (hereinafter defined) and (ii) the use and distribution of the
Preliminary Official Statement by the Purchasers in connection with the public offering and sale
of the Bonds. The final Official Statement, being a modification and amendment of the
Preliminary Official Statement to reflect the terms of sale (together with such changes approved
by any Authorized Official), shall be and is hereby in all respects approved and the Purchasers
are hereby authorized to use and distribute the final Official Statement, dated August 2, 2016, in
the reoffering, sale and delivery of the Bonds to the public. The Mayor and City Secretary are
further authorized and directed to manually execute and deliver for and on behalf of the Issuer
copies of the Official Statement in final form as may be required by the Purchasers, and such
final Official Statement in the form and content manually executed by said officials shall be
deemed to be approved by the Governing Body and constitute the Official Statement authorized
for distribution and use by the Purchasers. The proper officials of the Issuer are hereby
authorized to execute and deliver a certificate pertaining to such Official Statement as prescribed
therein, dated as of the date of payment for and delivery of the Bonds.
36253591.4 -23-
Proceeds from the sale of the Bonds shall be applied as follows:
(1) Accrued interest on the Bonds (in the amount of $____________), received
from the Purchasers, shall be deposited into the Bond Fund.
(2) The Issuer received an original issue reoffering premium from the sale of the
Bonds of $____________ which is hereby allocated by the Issuer in the following manner:
(A) $____________ to pay the Purchasers’ compensation, (B) $____________ to pay the costs
of issuance, (C) $____________ to pay the excess bid premium which shall be deposited into
the Bond Fund, and (D) the remaining $____________ is allocated toward the Issuer’s voted
authority and deposited as described in Paragraph (3) below.
(3) The balance of the proceeds (including a portion of the premium in the amount
of $____________ as described above and principal in the amount of $________.00, totaling
$____________) derived from the sale of the Bonds (after paying costs of issuance) shall be
deposited into the special construction account or accounts created for the projects to be
constructed with the proceeds of the Bonds. This special construction account shall be
established and maintained at the Depository and shall be invested in accordance with the
provisions of Section 10 of this Ordinance. Interest earned on the proceeds of the Bonds
pending completion of construction of the projects financed with such proceeds shall be
accounted for, maintained, deposited, and expended as permitted by the provisions of Chapter
1201, as amended, Texas Government Code, or as required by any other applicable law.
Thereafter, such amounts shall be expended in accordance with Section 11 of this Ordinance.
SECTION 18: Covenants to Maintain Tax-Exempt Status.
A. Definitions. When used in this Section, the following terms have the following
meanings:
Closing Date means the date on which the Bonds are first authenticated and
delivered to the initial purchasers against payment therefor.
Code means the Internal Revenue Code of 1986, as amended by all legislation, if
any, effective on or before the Closing Date.
Computation Date has the meaning set forth in Section 1.148-1(b) of the
Regulations.
Gross Proceeds means any proceeds as defined in Section 1.148-1(b) of the
Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the
Regulations, of the Bonds.
Investment has the meaning set forth in Section 1.148-1(b) of the Regulations.
Nonpurpose Investment means any investment property, as defined in section
148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not
acquired to carry out the governmental purposes of the Bonds.
36253591.4 -24-
Rebate Amount has the meaning set forth in Section 1.148-1(b) of the
Regulations.
Regulations means any proposed, temporary, or final Income Tax Regulations
issued pursuant to sections 103 and 141 through 150 of the Code, and 103 of the Internal
Revenue Code of 1954, which are applicable to the Bonds. Any reference to any specific
Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax
Regulation designed to supplement, amend or replace the specific Regulation referenced.
Yield of
(1) any Investment has the meaning set forth in Section 1.148-5 of the
Regulations; and
(2) means the combined yield of the Certificates and the Bonds within
the meaning set forth in Section 1.148-4 of the Regulations.
B. Not to Cause Interest to Become Taxable. The Issuer shall not use, permit the use
of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition,
construction or improvement of which is to be financed or refinanced directly or indirectly with
Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on
any Bond to become includable in the gross income, as defined in section 61 of the Code, of the
owner thereof for federal income tax purposes. Without limiting the generality of the foregoing,
unless and until the Issuer receives a written opinion of counsel nationally recognized in the field
of municipal bond law to the effect that failure to comply with such covenant will not adversely
affect the exemption from federal income tax of the interest on any Bond, the Issuer shall comply
with each of the specific covenants in this Section.
C. No Private Use or Private Payments. Except to the extent that it will cause the
Bonds to become “private activity bonds” within the meaning of section 141 of the Code and the
Regulations and rulings thereunder, the Issuer shall at all times prior to the last Stated Maturity
of Bonds:
(1) exclusively own, operate and possess all property the acquisition,
construction or improvement of which is to be financed or refinanced directly or
indirectly with Gross Proceeds of the Bonds, and not use or permit the use of such Gross
Proceeds (including all contractual arrangements with terms different than those
applicable to the general public) or any property acquired, constructed or improved with
such Gross Proceeds in any activity carried on by any person or entity (including the
United States or any agency, department and instrumentality thereof) other than a state or
local government, unless such use is solely as a member of the general public; and
(2) not directly or indirectly impose or accept any charge or other payment by
any person or entity who is treated as using Gross Proceeds of the Bonds or any property
the acquisition, construction or improvement of which is to be financed or refinanced
directly or indirectly with such Gross Proceeds, other than taxes of general application
within the Issuer or interest earned on investments acquired with such Gross Proceeds
pending application for their intended purposes.
36253591.4 -25-
D. No Private Loan. Except to the extent that it will not cause the Bonds to become
“private activity bonds” within the meaning of section 141 of the Code and the Regulations and
rulings thereunder, the Issuer shall not use Gross Proceeds of the Bonds to make or finance loans
to any person or entity other than a state or local government. For purposes of the foregoing
covenant, such Gross Proceeds are considered to be “loaned” to a person or entity if: (1) property
acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or
entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or
service from such property is committed to such person or entity under a take-or-pay, output or
similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of
such Gross Proceeds or any property acquired, constructed or improved with such Gross
Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan.
E. Not to Invest at Higher Yield. Except to the extent that it will cause the Bonds to
become “arbitrage bonds” within the meaning of section 148 of the Code and the Regulations
and rulings thereunder, the Issuer shall not at any time prior to the final Stated Maturity of the
Bonds directly or indirectly invest Gross Proceeds in any Investment, if as a result of such
investment the Yield on any Investments acquired with Gross Proceeds (or with money replaced
thereby), whether then held or previously disposed of, materially exceeds the Yield of the Bonds.
F. Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the
Code and the Regulations and rulings thereunder, the Issuer shall not take or omit to take any
action which would cause the Bonds to be federally guaranteed within the meaning of section
149(b) of the Code and the Regulations and rulings thereunder.
G. Information Report. The Issuer shall timely file the information required by
section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other
form and in such place as the Secretary may prescribe.
H. Rebate of Arbitrage Profits. Except to the extent otherwise provided in section
148(f) of the Code and the Regulations and rulings thereunder:
(1) The Issuer shall account for all Gross Proceeds (including all receipts,
expenditures and investments thereof) on its books of account separately and apart from
all other funds (and receipts, expenditures and investments thereof) and shall retain all
records of accounting for at least six years after the day on which the last Outstanding
Bond is discharged. However, to the extent permitted by law, the Issuer may commingle
Gross Proceeds of the Bonds with other money of the Issuer, provided that the Issuer
separately accounts for each receipt and expenditure of Gross Proceeds and the
obligations acquired therewith.
(2) Not less frequently than each Computation Date, the Issuer shall calculate
the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and
the Regulations and rulings thereunder. The Issuer shall maintain such calculations with
its official transcript of proceedings relating to the issuance of the Bonds until six years
after the final Computation Date.
36253591.4 -26-
(3) As additional consideration for the purchase of the Bonds by the
Purchasers and the loan of the money represented thereby and in order to induce such
purchase by measures designed to insure the excludability of the interest thereon from the
gross income of the owners thereof for federal income tax purposes, the Issuer shall pay
to the United States out of the Bond Fund or its general fund, as permitted by applicable
Texas statute, regulation or opinion of the Attorney General of the State of Texas, the
amount that when added to the future value of previous rebate payments made for the
Bonds equals (i) in the case of a Final Computation Date as defined in Section 1.148-
3(e)(2) of the Regulations, one hundred percent (100%) of the Rebate Amount on such
date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the
Rebate Amount on such date. In all cases, the rebate payments shall be made at the
times, in the installments, to the place and in the manner as is or may be required by
section 148(f) of the Code and the Regulations and rulings thereunder, and shall be
accompanied by Form 8038-T or such other forms and information as is or may be
required by section 148(f) of the Code and the Regulations and rulings thereunder.
(4) The Issuer shall exercise reasonable diligence to assure that no errors are
made in the calculations and payments required by paragraphs (2) and (3), and if an error
is made, to discover and promptly correct such error within a reasonable amount of time
thereafter (and in all events within one hundred eighty (180) days after discovery of the
error), including payment to the United States of any additional Rebate Amount owed to
it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations.
I. Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of
the Code and the Regulations and rulings thereunder, the Issuer shall not, at any time prior to the
earlier of the Stated Maturity or final payment of the Bonds, enter into any transaction that
reduces the amount required to be paid to the United States pursuant to Subsection H of this
Section because such transaction results in a smaller profit or a larger loss than would have
resulted if the transaction had been at arm’s length and had the Yield of the Bonds not been
relevant to either party.
J. Bonds Not Hedge Bonds.
(1) The Issuer reasonably expects to spend at least 85% of the spendable
proceeds of the Bonds within three years after such Bonds are issued.
(2) Not more than 50% of the proceeds of the Bonds will be invested in
Nonpurpose Investments having a substantially guaranteed Yield for a period of four
years or more.
K. Elections. The Issuer hereby directs and authorizes any Authorized Official,
either or any combination of the foregoing, to make such elections in the Certificate as to Tax
Exemption or similar or other appropriate certificate, form, or document permitted or required
pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate
in connection with the Bonds. Such elections shall be deemed to be made on the Closing Date.
36253591.4 -27-
SECTION 19: Satisfaction of Obligation of the Issuer. If the Issuer shall pay or cause to
be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and
interest on the Bonds, at the times and in the manner stipulated in this Ordinance, then the pledge
of taxes levied under this Ordinance and all covenants, agreements, and other obligations of the
Issuer to the Holders shall thereupon cease, terminate, and be discharged and satisfied.
Bonds, or any principal amount(s) thereof, shall be deemed to have been paid within the
meaning and with the effect expressed above in this Section when: (i) money sufficient to pay in
full such Bonds or the principal amount(s) thereof at Stated Maturity or to the redemption date
therefor, together with all interest due thereon, shall have been irrevocably deposited with and
held in trust by the Paying Agent/Registrar, or an authorized escrow agent; and/or (ii)
Government Securities shall have been irrevocably deposited in trust with the Paying
Agent/Registrar, or an authorized escrow agent, which Government Securities have, in the case
of a net defeasance, been certified by an independent accounting firm to mature as to principal
and interest in such amounts and at such times as will insure the availability, without
reinvestment, of sufficient money, together with any money deposited therewith, if any, to pay
when due the principal of and interest on such Bonds, or the principal amount(s) thereof, on and
prior to the Stated Maturity thereof (or if notice of redemption has been duly given or waived or
if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made)
the redemption date thereof for the Bonds. In the event of a gross defeasance of the Bonds, the
Issuer shall deliver a certificate from its financial advisor, the Paying Agent/Registrar, or another
qualified third party concerning the deposit of cash and/or Government Securities to pay, when
due, the principal of, redemption premium (if any), and interest due on any defeased Bonds. The
Issuer covenants that no deposit of money or Government Securities will be made under this
Section and no use made of any such deposit which would cause the Bonds to be treated as
arbitrage bonds within the meaning of section 148 of the Code (as defined in Section 18 hereof).
Any money so deposited with the Paying Agent/Registrar, and all income from
Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow
agent, pursuant to this Section which is not required for the payment of the Bonds, or any
principal amount(s) thereof, or interest thereon with respect to which such money has been so
deposited shall be remitted to the Issuer or deposited as directed by the Issuer. Furthermore, any
money held by the Paying Agent/Registrar for the payment of the principal of and interest on the
Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity, or
applicable redemption date of the Bonds, such money was deposited and is held in trust to pay
shall upon the request of the Issuer be remitted to the Issuer against a written receipt therefor,
subject to the unclaimed property laws of the State of Texas.
Notwithstanding any other provision of this Ordinance to the contrary, it is hereby
provided that any determination not to redeem defeased Bonds that is made in conjunction with
the payment arrangements specified in subsection (i) or (ii) above shall not be irrevocable,
provided that: (1) in the proceedings providing for such defeasance, the Issuer expressly
reserves the right to call the defeased Bonds for redemption; (2) gives notice of the reservation of
that right to the owners of the defeased Bonds immediately following the defeasance; (3) directs
that notice of the reservation be included in any redemption notices that it authorizes; and (4) at
the time of the redemption, satisfies the conditions of (i) or (ii) above with respect to such
defeased debt as though it was being defeased at the time of the exercise of the option to redeem
36253591.4 -28-
the defeased Bonds, after taking the redemption into account in determining the sufficiency of
the provisions made for the payment of the defeased Bonds.
SECTION 20: Ordinance a Contract - Amendments - Outstanding Bonds. The Issuer
acknowledges that the covenants and obligations of the Issuer herein contained are a material
inducement to the purchase of the Bonds. This Ordinance shall constitute a contract with the
Holders from time to time, be binding on the Issuer, and its successors and assigns, and it shall
not be amended or repealed by the Issuer so long as any Bond remains Outstanding except as
permitted in this Section. The Issuer may, without the consent of or notice to any Holders, from
time to time and at any time, amend this Ordinance in any manner not detrimental to the interests
of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or
omission herein. In addition, the Issuer may, with the written consent of Holders holding a
majority in aggregate principal amount of the Bonds then Outstanding affected thereby, amend,
add to, or rescind any of the provisions of this Ordinance; provided, however, that, without the
consent of all Holders of Outstanding Bonds, no such amendment, addition, or rescission shall:
(i) extend the time or times of payment of the principal of, premium, if any, and interest on the
Bonds, reduce the principal amount thereof, the redemption price thereof, or the rate of interest
thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or
interest on the Bonds; (ii) give any preference to any Bond over any other Bond; or (iii) reduce
the aggregate principal amount of Bonds required for consent to any such amendment, addition,
or rescission.
SECTION 21: Control and Custody of Bonds. The Mayor of the Issuer shall be and is
hereby authorized to take and have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas including the printing and supply of
definitive Bonds and shall take and have charge and control of the Initial Bond pending its
approval by the Attorney General of the State of Texas, the registration thereof by the
Comptroller of Public Accounts of the State of Texas and the delivery thereof to the Purchasers.
Furthermore, each Authorized Official, any or all, are hereby authorized and directed to
furnish and execute such documents relating to the Issuer and its financial affairs as may be
necessary for the issuance of the Bonds, the approval of the Attorney General of the State of
Texas, and their registration by the Comptroller of Public Accounts of the State of Texas and,
together with the Issuer’s Financial Advisors, Bond Counsel, and the Paying Agent/Registrar, to
make the necessary arrangements for the delivery of the Initial Bond to the Purchasers and the
initial exchange thereof for definitive Bonds.
SECTION 22: Printed Opinion. The Purchasers’ obligation to accept delivery of the
Bonds is subject to its being furnished a final opinion of Norton Rose Fulbright US LLP, San
Antonio, Texas, as Bond Counsel, approving the Bonds as to their validity, said opinion to be
dated and delivered as of the date of initial delivery and payment for the Bonds. Printing of a
true and correct reproduction of said opinions on the reverse side of each of the Bonds is hereby
approved and authorized.
SECTION 23: CUSIP Numbers. CUSIP numbers may be printed or typed on the Bonds.
It is expressly provided, however, that the presence or absence of CUSIP numbers on the Bonds
shall be of no significance or effect as regards the legality thereof, and neither the Issuer nor
36253591.4 -29-
attorneys approving said Bonds as to legality are to be held responsible for CUSIP numbers
incorrectly printed or typed on the Bonds.
SECTION 24: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is
intended or shall be construed to confer upon any person other than the Issuer, the Paying
Agent/Registrar, Bond Counsel, the Purchasers, and the Holders any right, remedy, or claim,
legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance
and all its provisions being intended to be and being for the sole and exclusive benefit of the
Issuer, the Paying Agent/Registrar, Bond Counsel, the Purchasers, and the Holders.
SECTION 25: Inconsistent Provisions. All ordinances, orders, or resolutions, or parts
thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby
repealed to the extent of such conflict and the provisions of this Ordinance shall be and remain
controlling as to the matters contained herein.
SECTION 26: Governing Law. This Ordinance shall be construed and enforced in
accordance with the laws of the State of Texas and the United States of America.
SECTION 27: Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.
SECTION 28: Severability. If any provision of this Ordinance or the application thereof
to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the
application of such provision to other persons and circumstances shall nevertheless be valid, and
the Governing Body hereby declares that this Ordinance would have been enacted without such
invalid provision.
SECTION 29: Public Meeting. It is officially found, determined, and declared that the
meeting at which this Ordinance is adopted was open to the public and public notice of the time,
place, and subject matter of the public business to be considered at such meeting, including this
Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code.
SECTION 30: Authorization of Paying Agent/Registrar Agreement. The Governing
Body of the Issuer hereby finds and determines that it is in the best interest of the Issuer to
authorize the execution of a Paying Agent/Registrar Agreement pertaining to the registration,
transferability, and payment of the Bonds. A copy of the Paying Agent/Registrar Agreement is
attached hereto, in substantially final form, as Exhibit A and is incorporated herein by reference
as fully as if recopied in its entirety in this Ordinance.
SECTION 31: Incorporation of Preamble Recitals. The recitals contained in the
preamble to this Ordinance are hereby found to be true, and such recitals are hereby made a part
of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the
Governing Body of the Issuer.
SECTION 32: Book-Entry-Only System. It is intended that the Bonds initially be
registered so as to participate in a securities depository system (the DTC System) with the
Depository Trust Company, New York, New York, or any successor entity thereto (the DTC), as
set forth herein. Each Stated Maturity of the Bonds shall be issued (following cancellation of the
36253591.4 -30-
Initial Bond described in Section 7) in the form of a separate single definitive Bond. Upon
issuance, the ownership of each such Bond shall be registered in the name of Cede & Co., as the
nominee of DTC, and all of the Outstanding Bonds shall be registered in the name of Cede &
Co., as the nominee of DTC. The Issuer and the Paying Agent/Register are authorized to
execute, deliver, and take the actions set forth in such letters to or agreements with DTC as shall
be necessary to effectuate the DTC System, including the Letter of Representations attached
hereto as Exhibit C (the Representation Letter).
With respect to the Bonds registered in the name of Cede & Co., as nominee of DTC, the
Issuer and the Paying Agent/Registrar shall have no responsibility or obligation to any
broker-dealer, bank, or other financial institution for which DTC holds the Bonds from time to
time as securities depository (a Depository Participant) or to any person on behalf of whom such
a Depository Participant holds an interest in the Bonds (an Indirect Participant). Without
limiting the immediately preceding sentence, the Issuer and the Paying Agent/Registrar shall
have no responsibility or obligation with respect to: (i) the accuracy of the records of DTC, Cede
& Co., or any Depository Participant with respect to any ownership interest in the Bonds; (ii) the
delivery to any Depository Participant or any other person, other than a registered owner of the
Bonds, as shown on the Security Register, of any notice with respect to the Bonds, including any
notice of redemption; or (iii) the delivery to any Depository Participant or any Indirect
Participant or any other Person, other than a Holder of a Bond, of any amount with respect to
principal of, premium, if any, or interest on the Bonds. While in the DTC System, no person
other than Cede & Co., or any successor thereto, as nominee for DTC, shall receive a bond
certificate evidencing the obligation of the Issuer to make payments of principal, premium, if
any, and interest pursuant to this Ordinance. Upon delivery by DTC to the Paying
Agent/Registrar of written notice to the effect that DTC has determined to substitute a new
nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to
interest checks or drafts being mailed to the Holder, the word “Cede & Co.” in this Ordinance
shall refer to such new nominee of DTC.
In the event that: (a) the Issuer determines that DTC is incapable of discharging its
responsibilities described herein and in the Representation Letter; (b) the Representation Letter
shall be terminated for any reason; or (c) DTC or the Issuer determines that it is in the best
interest of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the
Issuer shall notify the Paying Agent/Registrar, DTC, and DTC Participants of the availability
within a reasonable period of time through DTC of bond certificates, and the Bonds shall no
longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that
time, the Issuer may determine that the Bonds shall be registered in the name of and deposited
with a successor depository operating a securities depository system, as may be acceptable to the
Issuer, or such depository’s agent or designee, and if the Issuer and the Paying Agent/Registrar
do not select such alternate securities depository system then the Bonds may be registered in
whatever name or names the Holders of Bonds transferring or exchanging the Bonds shall
designate, in accordance with the provisions hereof.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any
Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to
principal of, premium, if any, and interest on such Bond and all notices with respect to such
Bond shall be made and given, respectively, in the manner provided in the Representation Letter.
36253591.4 -31-
SECTION 33: Construction of Terms. If appropriate in the context of this Ordinance,
words of the singular number shall be considered to include the plural, words of the plural
number shall be considered to include the singular, and words of the masculine, feminine or
neuter gender shall be considered to include the other genders.
SECTION 34: Unavailability of Authorized Publication. If, because of the temporary or
permanent suspension of any newspaper, journal, or other publication, or, for any reason,
publication of notice cannot be made meeting any requirements herein established, any notice
required to be published by the provisions of this Ordinance shall be given in such other manner
and at such time or times as in the judgment of the Issuer or of the Paying Agent/Registrar shall
most effectively approximate such required publication and the giving of such notice in such
manner shall for all purposes of this Ordinance be deemed to be in compliance with the
requirements for publication thereof.
SECTION 35: No Recourse Against Issuer Officials. No recourse shall be had for the
payment of principal of, premium, if any, or interest on any Bond or for any claim based thereon
or on this Ordinance against any official of the Issuer or any person executing any Bond.
SECTION 36: Continuing Disclosure Undertaking.
A. Definitions.
As used in this Section, the following terms have the meanings ascribed to such terms
below:
EMMA means the MSRB’s Electronic Municipal Market Access system, accessible by
the general public, without charge, on the internet through the uniform resource locator (URL)
http://www.emma.msrb.org.
MSRB means the Municipal Securities Rulemaking Board.
Rule means SEC Rule 15c2-12, as amended from time to time.
SEC means the United States Securities and Exchange Commission.
B. Annual Reports.
The Issuer shall file annually with the MSRB, (1) within six months after the end of each
fiscal year of the Issuer ending in or after 2016, financial information and operating data with
respect to the Issuer of the general type included in the final Official Statement authorized by
Section 17 of this Ordinance, being the information described in Exhibit D hereto, and (2) if not
provided as part of such financial information and operating data, audited financial statements of
the Issuer, when and if available. Any financial statements so to be provided shall be (i)
prepared in accordance with the accounting principles described in Exhibit D hereto, or such
other accounting principles as the Issuer may be required to employ from time to time pursuant
to state law or regulation, and (ii) audited, if the Issuer commissions an audit of such financial
statements and the audit is completed within the period during which they must be provided. If
the audit of such financial statements is not complete within such period, then the Issuer shall file
36253591.4 -32-
unaudited financial statements within such period and audited financial statements for the
applicable fiscal year to the MSRB, when and if the audit report on such financial statements
becomes available. Under current Texas law, including, but not limited to, Chapter 103, as
amended, Texas Local Government Code, the Issuer must have its records and accounts audited
annually and shall have an annual financial statement prepared based on the audit. The annual
financial statement, including the auditor’s opinion on the statement, shall be filed in the office
of the City Secretary within 180 days after the last day of the Issuer’s fiscal year. Additionally,
upon the filing of this financial statement and the annual audit, these documents are subject to
the Texas Open Records Act, as amended, Texas Government Code, Chapter 552.
If the Issuer changes its fiscal year, it will file notice of such change (and of the date of
the new fiscal year end) with the MSRB prior to the next date by which the Issuer otherwise
would be required to provide financial information and operating data pursuant to this Section.
C. Notice of Certain Events.
The Issuer shall file notice of any of the following events with respect to the Bonds to the
MSRB in a timely manner and not more than 10 business days after occurrence of the event:
(1) Principal and interest payment delinquencies;
(2) Non-payment related defaults, if material;
(3) Unscheduled draws on debt service reserves reflecting financial
difficulties;
(4) Unscheduled draws on credit enhancements reflecting financial
difficulties;
(5) Substitution of credit or liquidity providers, or their failure to perform;
(6) Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue
(IRS Form 5701-TEB), or other material notices or determinations with
respect to the tax status of the Bonds, or other material events affecting the
tax status of the Bonds;
(7) Modifications to rights of holders of the Bonds, if material;
(8) Bond calls, if material, and tender offers;
(9) Defeasances;
(10) Release, substitution, or sale of property securing repayment of the Bonds,
if material;
(11) Rating changes;
36253591.4 -33-
(12) Bankruptcy, insolvency, receivership, or similar event of the Issuer, which
shall occur as described below;
(13) The consummation of a merger, consolidation, or acquisition involving the
Issuer or the sale of all or substantially all of its assets, other than in the
ordinary course of business, the entry into of a definitive agreement to
undertake such an action or the termination of a definitive agreement
relating to any such actions, other than pursuant to its terms, if material;
and
(14) Appointment of a successor or additional paying agent/registrar or the
change of name of a paying agent/registrar, if material.
For these purposes, any event described in the immediately preceding paragraph (12) is
considered to occur when any of the following occur: the appointment of a receiver, fiscal agent,
or similar officer for the Issuer in a proceeding under the United States Bankruptcy Code or in
any other proceeding under state or federal law in which a court or governmental authority has
assumed jurisdiction over substantially all of the assets or business of the Issuer, or if such
jurisdiction has been assumed by leaving the existing governing body and officials or officers in
possession but subject to the supervision and orders of a court or governmental authority, or the
entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or
governmental authority having supervision or jurisdiction over substantially all of the assets or
business of the Issuer.
The Issuer shall file notice with the MSRB, in a timely manner, of any failure by the
Issuer to provide financial information or operating data in accordance with this Section by the
time required by this Section.
D. Limitations, Disclaimers, and Amendments.
The Issuer shall be obligated to observe and perform the covenants specified in this
Section for so long as, but only for so long as, the Issuer remains an “obligated person” with
respect to the Bonds within the meaning of the Rule, except that the Issuer in any event will give
notice of any deposit that causes the Bonds to be no longer Outstanding.
The provisions of this Section are for the sole benefit of the holders and beneficial
owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or
any legal or equitable right, remedy, or claim hereunder to any other person. The Issuer
undertakes to provide only the financial information, operating data, financial statements, and
notices which it has expressly agreed to provide pursuant to this Section and does not hereby
undertake to provide any other information that may be relevant or material to a complete
presentation of the Issuer’s financial results, condition, or prospects or hereby undertake to
update any information provided in accordance with this Section or otherwise, except as
expressly provided herein. The Issuer does not make any representation or warranty concerning
such information or its usefulness to a decision to invest in or sell Bonds at any future date.
UNDER NO CIRCUMSTANCES SHALL THE ISSUER BE LIABLE TO THE
HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN
36253591.4 -34-
CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM
ANY BREACH BY THE ISSUER, WHETHER NEGLIGENT OR WITH OR WITHOUT
FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY
RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON
ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR
MANDAMUS OR SPECIFIC PERFORMANCE.
No default by the Issuer in observing or performing its obligations under this Section
shall constitute a breach of or default under this Ordinance for purposes of any other provision of
this Ordinance.
Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the
duties of the Issuer under federal and state securities laws.
The provisions of this Section may be amended by the Issuer from time to time to adapt
to changed circumstances that arise from a change in legal requirements, a change in law, or a
change in the identity, nature, status, or type of operations of the Issuer, but only if (1) the
provisions of this Section, as so amended, would have permitted an underwriter to purchase or
sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account
any amendments or interpretations of the Rule to the date of such amendment, as well as such
changed circumstances, and (2) either (a) the holders of a majority in aggregate principal amount
(or any greater amount required by any other provision of this Ordinance that authorizes such an
amendment) of the Outstanding Bonds consent to such amendment or (b) a person that is
unaffiliated with the Issuer (such as nationally recognized bond counsel) determines that such
amendment will not materially impair the interests of the holders and beneficial owners of the
Bonds. The Issuer may also repeal or amend the provisions of this Section if the SEC amends or
repeals the applicable provisions of the Rule or any court of final jurisdiction enters judgment
that such provisions of the Rule are invalid, and the Issuer also may amend the provisions of this
Section in its discretion in any other manner or circumstance, but in either case only if and to the
extent that the provisions of this sentence would not have prevented an underwriter from
lawfully purchasing or selling Bonds in the primary offering of the Bonds, giving effect to (a)
such provisions as so amended and (b) any amendments or interpretations of the Rule. If the
Issuer so amends the provisions of this Section, the Issuer shall include with any amended
financial information or operating data next provided in accordance with this Section an
explanation, in narrative form, of the reasons for the amendment and of the impact of any change
in the type of financial information or operating data so provided.
E. Information Format – Incorporation by Reference.
The Issuer information required under this Section shall be filed with the MSRB through
EMMA in such format and accompanied by such identifying information as may be specified
from time to time thereby. Under the current rules of the MSRB, continuing disclosure
documents submitted to EMMA must be in word-searchable portable document format (PDF)
files that permit the document to be saved, viewed, printed, and retransmitted by electronic
means and the series of obligations to which such continuing disclosure documents relate must
be identified by CUSIP number or numbers.
36253591.4 -35-
Financial information and operating data to be provided pursuant to this Section may be
set forth in full in one or more documents or may be included by specific reference to any
document (including an official statement or other offering document) available to the public
through EMMA or filed with the SEC.
SECTION 37: Further Procedures. The officers and employees of the Issuer are hereby
authorized, empowered and directed from time to time and at any time to do and perform all such
acts and things and to execute, acknowledge and deliver in the name and under the corporate seal
and on behalf of the Issuer all such instruments, whether or not herein mentioned, as may be
necessary or desirable in order to carry out the terms and provisions of this Ordinance, the initial
sale and delivery of the Bonds, the Official Bid Form, the Paying Agent/Registrar Agreement,
and the Official Statement. In addition, prior to the initial delivery of the Bonds, any Authorized
Official and Bond Counsel are hereby authorized and directed to approve any technical changes
or corrections to this Ordinance or to any of the instruments authorized and approved by this
Ordinance and as described in the Official Statement necessary in order to: (i) correct any
ambiguity or mistake or properly or more completely document the transactions contemplated
and approved by this Ordinance; (ii) obtain a rating from any of the national bond rating
agencies; or (iii) obtain the approval of the Bonds by the Texas Attorney General’s office. In
case any officer of the Issuer whose signature shall appear on any certificate shall cease to be
such officer before the delivery of such certificate, such signature shall nevertheless be valid and
sufficient for all purposes the same as if such officer had remained in office until such delivery.
SECTION 38: Contracts with Financial Advisor and/or Bond Counsel. The Governing
Body authorizes each Authorized Official, or their designees, to take all actions necessary to
execute any necessary financial advisory contracts with SAMCO Capital Markets, Inc., as the
financial advisor to the Issuer (the Financial Advisor). The Issuer understands that under
applicable federal securities laws and regulations that the Issuer must have a contractual
arrangement with its Financial Advisor relating to the sale, issuance, and delivery of the Bonds.
In addition, the Governing Body also authorizes each Authorized Official, or their designees, to
take all actions necessary to execute any necessary engagement agreement with Norton Rose
Fulbright US LLP, as the Bond Counsel to the Issuer.
SECTION 39: Issuer’s Consent to Provide Information and Documentation to the Texas
MAC. The Municipal Advisory Council of Texas (the Texas MAC), a non-profit membership
corporation organized exclusively for non-profit purposes described in section 501(c)(6) of the
Internal Revenue Code and which serves as a comprehensive financial information repository
regarding municipal debt issuers in Texas, requires provision of written documentation regarding
the issuance of municipal debt by the issuers thereof. In support of the purpose of the Texas
MAC and in compliance with applicable law, the Issuer hereby consents to and authorizes any
Authorized Representative, Bond Counsel to the Issuer, and/or Financial Advisor to the Issuer to
provide to the Texas MAC information and documentation requested by the Texas MAC relating
to the Bonds; provided, however, that no such information and documentation shall be provided
prior to the Closing Date. This consent and authorization relates only to information and
documentation that is a part of the public record concerning the issuance of the Bonds.
SECTION 40: Effective Date. Pursuant to the provisions of Section 1201.028, as
amended, Texas Government Code, this Ordinance shall be effective immediately upon
36253591.4 -36-
adoption, notwithstanding any provision in the City’s Home Rule Charter to the contrary
concerning a multiple reading requirement for the adoption of ordinances.
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36253591.4 S-1
PASSED, APPROVED AND ADOPTED by the Governing Body of the City of Schertz,
Texas, this the 2nd day of August, 2016.
CITY OF SCHERTZ, TEXAS
____________________________________
Mayor
ATTEST:
____________________________________
City Secretary
(CITY SEAL)
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36253591.4 Index-1
INDEX TO SCHEDULES AND EXHIBITS
Exhibit A ....................................................................Paying Agent/Registrar Agreement
Exhibit B ....................................................................Official Bid Form
Exhibit C ....................................................................DTC Letter of Representations
Exhibit D ....................................................................Description of Annual Financial Information
36253591.4 A-1
EXHIBIT A
Paying Agent/Registrar Agreement
See Tab No. __
36253591.4 B-1
EXHIBIT B
Official Bid Form
See Tab No. __
36253591.4 C-1
EXHIBIT C
DTC Letter of Representations
See Tab No. __
36253591.4 D-1
EXHIBIT D
Description of Annual Financial Information
The following information is referred to in Section 36 of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided
annually in accordance with such Section are as specified (and included in the Appendix or
under the headings of the Official Statement referred to) below:
(1) The City’s audited financial statements for the most recently concluded fiscal year
or to the extent these audited financial statements are not available, the portions of the unaudited
financial statements of the City attached to the Official Statement as Appendix D, but for the
most recently concluded fiscal year.
The information in the Official Statement under Table 1 of the Official Statement and
Tables 1 through 10 of Appendix A, to the Official Statement.
Accounting Principles
The accounting principles referred to in such Section are generally accepted accounting
principles for governmental units as prescribed by the Government Accounting Standards Board
from time to time.