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ORDINANCE NO. 75 ,\ o ",/ 1'1" , ,~.1 STATE OF TEXAS COUNTY OF GUADALUPE CITY OF SCHERTZ I On this, September 6, 1962, the City Council of the City of Schertz, Texas, regularly convened at a regular meeting in the City Hall of the City of Schertz, Texas, with the following members present, namely: Roy W. Richard Elgin Beck Geo. P. Bolton R. R. Cosby W. E. Ebert Ralph R. Ikels Mayor Alderman Alderman Alderman Alderman Alderman and Geo. W. Pickrell City Secretary at which time the following proceedings, among others, were had, to-wit: Mayor Roy Wo Richard introduced a proposed ordin- ance creating and establishing a construction fund for the construction of a sewer system in and for the City of Schertz, Texas, hereinafter set forth. The ordinance was read in full and a full discussion and consideration thereof then ensued. 0?cdfAW ~1a said ordinance be passed and adopted. The motion was seconded uJ, t:, ~ Alderman moved that by Alderman . The motion carried by the following vote: AYES: Mayor Roy W. Richard, and Aldermen Elgin Beck, Geo. P. Bolton, R.R. Cosby, W. E. Ebert and Ralph R. Ikels NOES: None Thereupon, the Mayor announced the ordinance finally passed and adopted, and said ordinance as passed and adopted by the City Council and approved by the Mayor of the City of Schertz, Texas, is as follows: -1- .~ AN ORDINANCE '1.:J CREATING AND ESTABLISHING A SPECIAL FUND OR ACCOUNT TO BE KNOWN AS CITY OF SCHERTZ SEWER SYSTEM CONSTRUCTION ACCOUNT; DESIGNATING THE CUSTODIAN OR DEPOSITORY FOR SAID CONSTRUCTION ACCOUNT; PROVIDING THAT CERTAIN MONIES SHALL BE PAID INTO SAID CONSTRUCTION ACCOUNT, AND PROVIDING OTHER MATTERS INCIDENT AND RELATING TO THE SUBJECT. WHEREAS, heretofore, on September 6, 1962, the City Council of the City of Schertz, Texas, passed and adopted an ordinance authorizing the issuance of $301,000 CITY OF SCHERTZ, TEXAS, SEWER SYSTEM BONDS, SERIES 1962, dated June 1, \J 1962, for the purpose of constructing a sanitary sewer system in and for said City; and WHEREAS, the City of Schertz has heretofore entered into an agreement with the Housing and Home Finance Agency whereby said agency has agreed to aid the city in financing the construction of said sanitary sewer system, which has been designated by said Housing and Home Finance Agency as Project No. PFL-TEX-238, and as a special condition to such agreement has required that the city shall set up in a depository bank, or with the fiscal agency of the city, a separate account to be called CITY OF SCHERTZ SEWER SYSTEM CONSTRUCTION ACCOUNT, into which shall be deposited any temporary loans,government advances, and proceeds from the sale of bonds (except accrued interest), and additional funds required by the provisions of the loan agreement to be furnished by the City in order to insure the payment of all Project Costs; and WHEREAS, it is now the desire of this City Council to establish and create said construction account in accordance with the prescribed special conditions of the Housing and Home Fin~ce Agency and in accordance with its rules and regulations governing such construction account; NOW, THEREFORE, -2- BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: SECTION 1 - That there shall be, and there is hereby established and created a separate and special fund or account to be known as "CITY OF SCHERTZ SEWER SYSTEM CONSTRUCTION ACCOUNT", which account shall be kept separate and apart from all other funds or accounts of said City and shall be used for the purpose of paying all costs of construction and acquisition of a sanitary sewer system for and in the City of Schertz, including the payment of all incidental or proper expenses in connection therewith, other than the payment of any bond fees or fiscal agency fees or other costs or expenses in connection with the authorization and issuance of the aforementioned $301,000 CITY OF SCHERTZ SEWER SYSTEM BONDS, SERIES 1962, dated June 1, 1962. SECTION 2 - That the Frost National Bank, San Antonio, Texas, being a member of the Federal Deposit Insurance Corporation, and being a fiscal agency designated by the city for the payment of the principal of and interest on the aforementioned $301,000 CITY OF SCHERTZ SEWER SYSTEM BONDS, SERIES 1962, dated June 1, 1962, shall be, and is hereby designated the custodian of said CITY OF SCHERTZ SEWER SYSTEM CONSTRUCTION ACCOUNT, and all sums of money provided to be paid into said construction account shall be placed to the credit of said separate or special account in said bank; provided, however, that said Frost National Bank shall at all times, as a condition precedent to being custodian of such construction account, be a member of the Federal Deposit Insurance Corporation, and all monies held in said construction account by the Frost National Bank -3- shall be fully secured in the manner prescribed by statutes relating to the securing of public funds; and the City of , Schertz hereby covenants that said construction account will always be so secured and maintained in a bank which is a member of the Federal Deposit Insurance Corporation. SECTION 3 - That the City Treasurer of the City of Schertz, Texas, shall be, and he is hereby authorized and directed to cause the separate fund or account, known as CITY OF SCHERTZ SEWER SYSTEM CONSTRUCTION ACCOUNT, to be established in and upon the books and records of the Frost National Bank of San Antonio, Texas, and said fund or account to be maintained until the project of constructing the sanitary sewer system in and for the City of Schertz is completed. SECTION 4 - That, in accordance with the section designated A-I of Exhibit A entitled "Special Conditions" of the offer of Housing and Home Finance Agency, the City Treasurer of the City of Schertz is hereby author- ized and directed to transfer from the city's General Fund the sum of Fifteen Hundred Dollars ($1,500) and place said amount to the credit of the CITY OF SCHERTZ SEWER SYSTEM CONSTRUCTION ACCOUNT in the Frost National Bank, San Antonio, Texas. SECTION 5 - That, upon the City Treasurer of the City of Schertz, Texas, receiving the pro- ceeds from the sale of $298,000 CITY OF SCHERTZ SEWER SYSTEM BONDS, SERIES 1962, dated June 1, 1962, being Bonds Nos. 4 to 301, both inclusive, in the denomination of $1,000 each, the City Treasurer shall deposit the proceeds from the sale of said $298,000 of said bonds (other than accrued interest received therefor) to the credit of said CITY OF SCHERTZ SEWER SYSTEM CONSTRUCTION ACCOUNT in the Frost National Bank, San -4- Antonio, Texas; and said City Treasurer shall also deposit into said construction account in said Frost National Bank, as received, any temporary loans or any government advances made in connection with the construction of the sanitary sewer system for said city, which are receivable as, and for disbursement under said Project No. PFL-TEX-238. SECTION 6 - That no monies in said CITY OF SCHERTZ SEWER SYSTEM CONSTRUCTION ACCOUNT shall ever be expended except for such purposes as shall have been spec- ified in Project Cost estimates approved by the government. SECTION 7 - That any monies remaining in said CITY OF SCHERTZ SEWER SYSTEM CONSTRUCTION ACCOUNT after all costs of the aforesaid project have been paid, shall be promptly used to the extent possible for the redemption of the aforesaid CITY OF SCHERTZ SEWER SYSTEM BONDS, SERIES 1962, and any residue shall be transferred and deposited into the special fund or account heretofore created for the payment of the principal of and interest on said bonds, said special fund or account being known as SEWER SYSTEM TAX BOND AND INTEREST SINKING FUND of the City of Schertz, Texas, also provided to be created and maintained as a separate fund and account in the Frost National Bank, San Antonio, Texas. SECTION 8 - That the City of Schertz further covenants with the Housing and Home Finance Agency that the said CITY OF SCHERTZ SEWER SYSTEM CONSTRUCTION ACCOUNT shall be administered in compliance with the terms and con- ditions contained in the offer heretofore made by the Housing and Home Finance Agency bearing date of March 22, 1962, to aid the City of Schertz in the financing and construction of a sanitary sewer system for the city, which project is desig- nated as Project No. PFL-TEX-238, and pursuant to the terms -5- and conditions of Section 9, entitled "Construction Account" as contained in published form CFA-720 (7-60) of Housing and Home Finance Agency - Communities Facilities Administration, or any valid amendment thereof. PASSED, ADOPTED AND APPROVED this September 6, 1962. ATTEST: jf II~ ,) ','",It' City secr~t'ar-! :"Bity ~f Schertz T e x a s (Seal of City) STATE OF TEXAS I COUNTY OF GUADALUPE I CITY OF SCHERTZ I I, GEO. W. PICKRELL, City Secretary of the City of Schertz, Texas, DO HEREBY CERTIFY that the above and foregoing is a true and correct copy of an ordinance and the minutes pertaining to its adoption, which ordinance was duly and legally passed and adopted by the City Council of the City of Schertz, and approved by the Mayor of the City of Schertz, Texas, at a regular meeting held on September 6, 1962, at the regular meeting place in the City Hall in the City of Schertz, Texas, and that same appears of record in Book J of the Minutes of said City Council; and that I am the lawful possessor and custodian of such books and records of the City of Schertz, Texas. WITNESS MY HAND AND SEAL OF SAID CITY, this, September 6, 1962. f)- . _". A'.. ~ -. .{ 9. >} I J _ Af/~/rf:{ / City Secretary - C1ty 0 Schertz T e x a s (Seal of City) -6-