ORDINANCE NO. 98
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ORDINANCE AUTHORIZING ISSUANCE OF $50,000 "CITY OF
SCHERTZ, TEXAS, vJATEmJDRKS AND SEviER SYSTEM REVENUE
BONDS, SERIES 1964", DATED ]\!AY 1, 1964
THE STATE OF TEXAS
CITY OF SCHERTZ
COUNTY OF GUADALUPE
ON THIS, the 15th
day of April, 1964, the City
Council of the City of Schertz, Texas, convened in ~Det!"d /
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sessbn at the regular meeting place thereof in the City Hall,
there being present and in attendance the following members,
to-wit:
ROY'vi. RICHARD MAYOR
~~X>4.:~0N( )
RALPH R. IKELS l
RAYMOND G. KOYlIl ALDERIVIEN
ROBERT B. STED!I[AN )
]\lALFORD C. KOCH
OTTOMAR SCHERTZ
and with the following absent: AIo .Je ,
constituting a quorum; and among other proceedings had by said
City Council were the following:
Mayor Richard introduced a proposed ordinance. The ordi-
nance was read in full.
Alderman MY /VI
made a motion that any rule
requiring ordinances to be read at more than one meeting be sus-
pended. The motion was seconded by Alderman _C: fed M~N" and
carried by the following vote:
AYES:
Aldermen -S<'c;~rt~, :;:,:els, Koymi,
Stedman and Koch
NOES: None.
Alderr,1a:l freL s.
made a motion that the ordi-
nance be passed i'~___~lly. The motion was seconded by Alderman
K;;/hJ
c, ,~ carried by tl-:~ i'ollowing vote:
p.~~ j .
l.dermen 1J'e\etf~,
Stedman and Koch
Ilcels, Koym,
NOES: Eone.
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'I legally called and held for the purpose the City Council of the
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City of Schertz, became authorized and empowered to issue special
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I obligation bonds of the City payable as to principal and interest
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.i! solely from the revenues derived from the operation of the water-
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ii works and sanitary sewer system of said City, including all
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:1 additions, extensions, replacements and improvement~ thereto which
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Ii may hereafter be made, after deduction therefrom of the reasonable "
II expenses of maintenance and operation of said system, the follow~
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Ii ing schedule reflecting certain pertinent information with
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II to such authorization:
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:1 ELECTION TOTAL VOTED
Ii DATE AUTHORIZATION
Ii Dec.15,
1[1962
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il WHEREAS, the bonds previously issued as above referred
II to have been heretofore authorized, issued and sold pursuant to
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Ii ordinance duly passed, adopted and enacted by the City Council of
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il the City of Schertz, Texas, such bonds being further identified
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,: as follows:
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The Mayor announced that the ordinance had been finally
The ORDINANCE is as follows:,
"AN ORDINANCE by the City Council of the City of Schertz,
Texas, authorizing the issuance of $50,000 'CITY OF
SCHERTZ, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE
BONDS, SERIES 1964", dated May 1, 1964, for the purpose
of improving and extending the City's waterworks system,
as authorized by the Constitution and laws of the State
of Texas, particularly Articles 1111 to 1118, both
inclusive, Vernon's Texas Civil Statutes, as amended;
prescribing the form of the bonds and the form of the
interest coupons; pledging the revenues of the City's
combined Waterworks and Sanitary Sewer System to the
payment of the principal of and interest on said bonds,
after deduction of reasonable operation and maintenance
expenses, as s~id expenses are defined by statute;
enacting provisions incident and relating to the subject
and purpose of this ordinance; and deClaring an emergency "
WHEREAS, pursuant. to an election heretofore duly and
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respect, I
AMOUNTS VOTED
FOR PURPOSES
INDICATED
PREVIOUSLY
ISSUED
BALANCE
UNISSUED
$600,000
$600,000 Waterworks
$300,000
$300,000
"CITY OF SCHERTZ, TEXAS, WATERWORKS AND SEWER SYSTEroi
REVENUE BONDS, SERIES 1963, "dated February 1, 1963,
in the original principal sum of $300,000
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and~
whEREAS, it was provided in the ordinance authorizing
the issuance of the Series 1963 revenue bonds, passed and adopted
on the 29th day of January, 1963, that the City reserves the right
to issue additional bonds on a parity with the bonds authorized
as aforesaid, payable from a first lien on and pledge of the net
revenues of its combined Waterworks and sanitary Sewer System, but
only pursuant to. and subject to the restrictions, covenants and
limitations contained in the ordinance authorizing said bonds;
and
vrtlEREAS, the City Council finds and determines (a) that
the City is not in default as to any covenant, condition or obli-
gation prescribed by the ordinance authorizing the issuance of the
outstanding bonds; (2) that each of the funds created by the ordi-
nance authorizing the issuance of the outstanding bonds contains
the amount of money required to be on deposit therein; and (c)
The average annual net revenues of the combined Waterworks and
Sanitary Sewer System, as certified by a Certified Public Accoun-
tant for the two year period, the twenty four months ending March
31, 1964 (such earnings and expenses having been adjusted to re-
flect municipal ownershkp and operation during the twelve month
period ending March 31, 1963, being that part of the ~lenty four
months' period when the System was owned and operated by a private
corporation or person) are equal to at least one and one-half (1-1/2)
times the average annual principal and interest requirements on
all first lien revenue bonds payable from the net revenues of the
System which VIill be outstanding after the proposed $50,000 City
of Schertz, Texas, Waterworks and Sewer System Revenue Bonds are
issued, sold and delivered. Such average interest and principal
requirements were Co~}puted on a calendar year basis as of the 1st
day of May, 1964, be~ng the date of the proposed issue.
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II pose of purchasing a privately owned waterworks system which serves
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II the inhabitants in and in the vicinity of said City and improving
Ii and extending said waterworks system, and such systems were ac-
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. II quired by the City with the proceeds o;f said bonds and it is now
Ii found and determined that $50,000 bonds of the said voted authori-
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II zation should be issued ~or the purpose of improving and extending
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II the City Council of said City the ))proceeds of the said additional
!i bonds are needed for the purpose for. which authorized,
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II .TEXAS:
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II Revenue Bonds.
Ii City of Schertz, Texas, be issued in the principal amount of
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Ii $50,000, to be known and designated as "CITY OF SCHERTZ, TEXAS,
Ii WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1964", for the
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II purpose of improving and extending the City's waterworks system
I: under and by virtue of and in strict conformity with the Constitu- I,
II tion and laws of the State of Texas, particularly Articles 1111 to ,
1,Ii l
1118, both inclusive, Vernon's Texas Civil Statutes, as amended,
II and pursuant to the special election held in said City on the 15th
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ill day of December, 1962, the bonds hereby authorized being a portion
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il and the second installment of bonds out of a total of $600,000
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Ii revenue bonds authorized at said election, which said series of
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Ii works and sanitary sewer system
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i: tions, extensions, replacements
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WHEREAS, the Series 1963 bonds were issued for the pur-
the City'.s waterworks system in accordance with said voted authori-I
zation and that the.remaining amount of said .bonds too-wit: $250,0001
shall be issued at a future date or dates, when in the judgment of I
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
therefore I
,
SCHERTZ!,
SECTION 1:
Amount - Name - Purpose and Authorization of
That the serial coupon revenue bonds of the
bonds, together with the outstanding and unpaid previously
solely from the revenues derived from the
issued
interesJ,
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operation of the water- I
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of said City, including all addi- 'I
and improvements thereto which may
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bonds (as herein defined) are payable, as to principal and
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:: hereafter be made, after deduction therefrom of the reasonable
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:: expenses of maintenance and operation of said system.
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SECTION 2:
2.01 - Date - Bond Numbers - De~omination
and Maturities. That said revenue bonds shall be dated May I,
1964, shall be numbered consecutively from One (1) to Fifty (50)
both inclusive, shall be in denomination of One Thousand Dollars
($1,000) each, aggregating FIFTY THOUSAND DOLLARS ($50,000), ahd
shall become due and payable serially in their numerical order
on June 1st in each of the years 1994 to 1996, both inclusive,
in the respective amounts shown in the fOllowing schedule, to-wit:
BOND NUlIfR'RRS
(All Inclusive) l\1h?URITY Ar.'IOUNT
1 to 16 1994 $16,000
17 to 33 1995 17,000
34 to 50 1996 17,000
2.02 - OPTION OF PRIOR REmN?TIOL That each of the bonds of this
issue maturing on and after
Tune 1, 1994
, shall be
subject to redemption prim" to ms.tu:c"ity on .June 1, 1984
,
and on any interest paYffient date thsreafter~ at a price of par
and unpaid accrued interest to the fate fixed for redemption.
Notice of the intention to redeem S13:L1 be given in writing to the
bank at which said bonds are payable, and said ~otice shall be
published at least one (1) times in a financia~ journal or
publication of general circulation in the Uniced States of America,
which notice shall be given to said bank and pL1;lisl10" in said
journal or publication at least thL-ty (30) days pric_' to the date
fixed for rede~ption. If, by the jate fixed for redemption, funds
shall p~ve been made av@lable sufficient to pay the principal of
any bond so called for redemption and unpaid accrued interest
thereon to the date fixed for redemption, it sha:Ll not thereafter
bear interest. In the event that less than all bonds outstanding
then eligible for re',cc;:'"ption shall be thus called, the bonds the"
proposed to be redee:,_~c~ 0'>'211 be called in inverse numerical
order.
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SECTION 3:
3.01. INTEREST RATES AND INTEREST PAYlENT
DATES: That said bonds shall bear interest per annum, represented
by interest coupons attached to said bonds, at the fol1ovJing
rates, respectively:
Bonds Nos. to SO both inclusive, 4 1/2 c;/p
/0 :J
Bonds Nos. to both inclusive, C'!:.
---10,
Bonds Nos. to both inclusive, c~
/0 :?
interest payable December 1, 1964, and semi-annually thereafter on
June 1 and December 1 of each year until the principal sum is paid.
3..02 - I-,10m OF PA-~l}\TEl,jT JU1D BANK 01:7 PAYU[SNT. That both principal of
and interest on said bonds shall be payable in any coin or currency
or the United States of Ai1!erica whic~1, on the respective dates of
payment of such principal and interest, is legal tender for the
payment or debts due the United States of ~merica, at the FROST
NATIONAL BANK, San Antonio, Texas, v-rithout exchange or collection
charges to the owners of the bonds and/or interest coupons. The
principal o~ said bonds shall be payable only upon presentation and
surrender of said bonds as they respectively become due~ and in-
terest falling due on ana prlor to the respective maturity dates of
the bonds shall be payable only upon presentation and surrender of
the interest coupo~s attached to said bonds as such in~erest cou-
pons severally be c;orne elL" >
SEC::::':: 1+: :CXc:~u=ION 0:8' BONDS AND INTEREST COUPOl':S:
The seal of sa~.~~ Ci ~y
:.:.<.. impressed on each of saId bonds or
in the alter::~" .';'~'-':ie 2. l'acsi~.~;ile of such seal may be printed C,,-~ the
said bonds" ?l12 bonds and interest coupons appurtenant thereto may
be executed by the imprY~ed facsimile signatures of th~ Mayor and
City Secretary of the City and execution in such manner shall have
the same effect as if such bonds and coupons had been signed be' one
. .
Mayor and City Secretary in person by their manual sig~atures.
Inasmuch as such bonds are required to be registered by the
Comptroller of Public Accounts for the State of Texas, only his
signature (or that of a deputy designated in writing to act for
the Comptroller) s~zll be required to be manually subscribed to
such bonds in connection with his registration certificate to
appear thereon, as hereinafter provided; all in accordance with
the provisions of the "Texas Uniform Facsimile Signature of' Public
Officials Act", enacted by the 57th Legislature of Texas at its
Regular Session in 1961.
SECTION 5: FORM OF BONDS: That said bonds shall be in
substantially the following l~orm:
NO.
DlUTED STATES OF AMERIOA
$1,000
STi',TE OF TEXAS
COTJNTY OF GUADALUPE
CITY OF SCHERTZ, TEXAS, v!ATERlvORKS AND SEWER SYST:EE
REV,SNiJE BOND, SERIES 1964
T~3 CITY OF SC;~RTZ, in the County of Guadalupe, in the
State of Texas, FOR VALu~ R2CEI\~Do hereby acknOWledges itself in-
debted to and PRCl'USES ':['0 Pk'! TO E:::n'1ER ON THE FIRST DAY OF JUNE,
19_, solely from the S)~Clai funci hereinafter specified, the
sum of
onz TECUS;U~:; DOLL.\RS
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,$1,000 , and to pay
i~terest thereon from
the
date hereof at the
rate ofr
% (NOTE TO PRI~~ER: For interest rates~
see Secti~::. 3..01 of bond ol"ldinance) per annv.::'"[lp inte:;:.C:2"G payable
Dece~ber l. 1964, and semi-annually thereafter on June 1 and
~2cember ~ of each year until the princip~l E~D hereof shall have
been pale. Both principal of and interest on this bone. are payal
in any Coin or currency of the United St2..tes of ilmerica which on 'G:,0
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it respective dates of payment of such principal and interest is
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legal tender for the payment. of debts due the United States of
America, at the FROST NATIONAL BANK. San Antonio, Texas, without
exchange or collection charges to the owner or holder,
The
principal hereof shall be payable only upon presentation and
surrender of this bond, and interest hereon falling due on and
prior to the ma turi ty of this bond shall be payable only up'on
presentation and surrender of the interest coupons hereto attached,
as Such coupons severally become due.
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THE DATE of this bond, in conformity with the ordinance i
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hereinafter mentioned is May 1, 1964.
THIS BOND is one of a series of 50 serial bonds of like
date and tenor, except as to serial number, interest rate and
maturity, being numbered consecutively from 1 to 50, both inclu-
sive, in denomination of $1,000 each, aggregating $50,000 (being
a portion and the second installment of bonds out of a total of
$600,000 bonds authorized at the election hereinafter mentioned),
and together with the other bonds of said series, is issued for
sys- I
State I
the purpose of improving and extending the City's ~aterworks
tern, under and by virtue of the Constitution and laws of the
of Texas, particularly Articles 1111 to 1118, both inclusive,
Vernon's Texas Civil Statutes, as amended, and by authority of a
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vote of the duly qualified resident electors of said City who I
owned taxable property within said City and who had duly rendered I
the same for taxation, at an election held within said City on thel
15th day of December, 1962, and pursuant to an ordinance lawfully
adopted by the City Council of said City and duly recorded in the
official minutes of said City Council, to all the provisions of
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which ordinance the owner or holder of this bond, and of the
interest coupons appurtenant thereto, by the acceptance thereof,
expressly assents.
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EACH OF THE BONI;S OF 'I'}IIS ISSu"E I1ATURmG ON Arm
liFTER June 1. 1994
(Being Bonds Nos.
1
to
50
, both inclusive) SI~~L BE Su~ECT TO PEDEMPTION prior
to p-;.aturity ON
Jlmp. 1 19R4
, and on any
interest payment date thereafter, at a price of par and accrued
interest to the date so fixed for redemption. If the City elects
to redeem all or any part of said bonds, notice of the intention
to redeem shall be given in writing to the bank at which said
bonds are payable, and said notice shall be published at least
one (1) times in a financial journal or publication of general
circulation in the United States of ~~erica, which notice shall
be given to said bank and published in said journal or publication
at least thirty (30) days prior to the date fixed for redemption.
If, by the date fixed for redemption, funds shall have been made
available sufficient to pay the principal of any bond so called
for redemption and unpaid accrued interest thereon to the date
fixed for redemptioD3 it shall Dot thereafter bear interest. In
the event that less than sl2. bond.:.: oi.-ltstanding then eligible for
redemption shall be thus called" t}~e bO.,:,ds then proposed to be
redeemed shall be called _LiJ 1..1ver-:s.;:; -,-1ur::E:~'ical order.
EACH 2T.,;CG~-=:;5SIV3 F~-=~L;3R "^~::: ;':;::::':[18 30~\.I.';; and each successive
holder of eaCZl of tt:e iD:c82'est COvl..~-=-O..lS hereto attached is con-
elusively p~es~ceG
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and re~~lC:~:..c!.(;e his
equities
in favor of
subseque::/c hold8~'""'S :..:. ': _' \.::'~~:"",-12 ::~nd lNi thCYl.-i.C notice ~ and to agree that
this bODe: ':,i:2. each of' -C~.:.tE; C;OUPOD2 :::.:.,s:rcto e.ttached. -:,1a~r be negotiated
by deli'v2::::Y by any person having possession there c.::' ,. howsoever
such possessiOi.-i m2.Y have. oee:-.:, acc~uired~ and the.:c 2.,:.':::..... l'.Lolder who
shall have take~ this bond or any of the coupons
-;'-""-'
....1....,.....
S.EY person
for value and v,rithOt~t ::-.:.otice the:i.."eby has acquired 2.:.. .2.ute title
thereto3 free Iro~ any derenses enforceable against a~y prior
holc..eJ.:~ and free fr.om 2.1J. equit ies and. claims of o~\:nersl'lip of' a~--:y
such prior holder' c. T~~,.
,
~.:y of Schertz and its official and r~,s~21
age.:.1ts shall not be s..,:.te c"'c3d by an~T notice to the contrary.
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THIS BOliD shall not be deemed to constitute a debt of
the City of Schertz or a pledge of its faith and credit, but,
together with the outstanding and unp2id previously issued bonds
(~ 'e.'n ~ ", ~~
as Q .L.l..l8a lJ..'J. vue
ordinance authorizing th3 series of bonds of
\~hich this is one) shall be payable, as to principal and interest,
solely from the revenues derived from the operation of the water-
works and sanitary sewer system of said City, including all addi-
tions, extensions, ~oeplacemen'cs, and in:provements thereto which
may hereafter be made, after deduction therefrom of the reasonable
expenses of maintenance and operation of said System. The holder
hereof shall Dever have the right to demand pa~Qent of this obli-
gation out of any funds raised or to be raised by taxation.
'I'IE CITY EXPRESSLY F3S:SR\iES TF.E RIGHT TO ISSD'E the re-
lliaining bonds authorized at the election held on December 15,
1962, and additional bonds psyable from the net revenues of said
wate~Norks and sanitary sewe~ system$ and such remaining voted
bonds and additional bonds may be on a parity and of equal dignity
in all respects with the bonds of this issue and with the o~t-
standing previously issu,ec_ -:Jo,-,ds, but such remaining voted bonds
and additional parity bon~s may te issued only pursuant to and
subject to the r2st:--ic-':;io::-~:'::> Govc::c~a:lts-, and limitations contained
in the ordinance av..thorizirlg ;chis issue of bonds" to l'J'hich reference
is heroby made for 2,11 ps.r':.i'2;'Qlar'8",
I;:C IS 1-Blli3Y CERTI~:.IED;I ~~LZCITED AND REPRES=';~J'i:BD that the
issuanC8 of this bond and the other bonds of the series of which
this bOi..ld is a part is dUJ_Y s.:~lthor'~~z'2d by law; that all acts, con-
d:..tionti 2..~'1d things Z'equired -co eXi:J C and to b6' done '~recedent to
~;'rJ in the :..ssue.nce of this series of bonds to render the same lahT-
ful aDd valid have Deen p~operly done and perfo~~ed and have
happen2d in regular and due time" form ana. ;~':2..~.~:~~e:.'>-, as required by
la~'i; that due provision 1-,as been !2ade for.:', p8.ym2nt of the prin-
cipal of and interest on ~vhis bond and the (.' :~..8r bonds of the
series of 1'!hich it is a P8..1...;t by irrevoc;abl~-" ~:)led.ging the net
revenues of said v.Jatert\'"orks and sanitary sei,','cI' system; and that
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State of P~erica, solely from the special fund specified in the
bond to which this coupon appertains, said sum being interest due
that date on City of Schertz, Texas, Waterflorks and Sewer System
Revenue Bonds, Series 1964, bearing the number hereinafter speci-
fied, dated May 1, 1964. The holder hereof shall never have the
right to demand payment of this obligation out of any funds raised
or to be raised by taxation. Bond No.
Mayor, City of Schertz, Texas
City Secretary,City of Schertz,
Texas
SECTION 7: RSGISS'EATTON 011' BONDS BY STATE CO;<!PTROLLER
AND FORi,\![ OF REGISTRATION CEHTIFICATE. That each of said bonds
shall be registered in the office of the Comptroller of Public
Accounts of the State of Texas, as provided by law, and the regis-
tration certificate of said Comptroller of Public Accounts, which
certificate is to be printed on the back of each of said bonds
and is to be manually ex~~uted, shall be in substantially the
following form:
OFFICE OF COMPTROLLER
~
9.
REGISTER NO.
THE STATE OF TEXP,S ~
I tillRE3Y CE~T=?i that there is on file and of record in
my office a certificate of the Attorney General of the State of
Texas to the effect that this bond has been examined by him as
required by law, and that he finds that it has been issued in
conformity with the Constitution and laws of the State of Texas,
and is a valid and binding special obligation bf the City of
Schertz, Texas, payable fro:n the r'S\Tenues pledged to its payment
by and in the ordinance authorizing the sa~e; and said bond has
this day been registered by me.
J
.
.
WIT?ffiSS ~IT HAND p~~D SEAL OF OFFICE at Austin, Texas,
Comptroller of Public Accounts
of the State of Texas
SECTION 8: DEFINITIONS: That, as used in this ordinance,
the following words and terms shall mean and include, and are
defined, as follows, to~"it:
(a) City - the City of Schertz, Texas, and where appro-
priate, the City Council thereof.
(b) System - the wate~~orks system to be purchased by
the City with the proceeds of sale of the bonds authorized by
this ordinance and the ordinance of January 29, 1963 and the
sanitary sewer system of saic City under constructio~, including
all present al;ld future ao.ditions, extensions, rep1acernen'cs and
improvements to said i1at2r~orks system and sanita~y sewer system.
(c) Net Revenues - the gross revenues der:'Lved from the
operation of the System less the reasonable expenses of maintenance
and operation of said System, including all salaries, labor,
materials, interest and sue:,. repairs and extensions as in the judg-
ment of the governing bodJ c: the City are necessary to keep the
plant or util~ty in operatic': and render adequate service to such
City and tne inhabitan.c.s the:C'30f, or such as might t" .,ecessarylto
meet SO~-G2 phy.. ,;..::-:..1 accident or cond.ition tihich would o-chervli;se
impair the 8riginal secur~ty~
, 'n d~
\,..) .,,:)on u
- the ~;)50"OOO City of Schertz" Tc:::'.:..s, tAjater-
works ai.1d SeT;,yer System Revenue Bends, Series 1964" dat('t,:~ ~lay 1,
1 00"'" LL
-:;J . ~
authorized by-thiS ordi2ance~
(e) Previously Issued Bonds - the City of SCDertZ:1
Texas W2te~#orks aDQ Sewer System Revenue Bonds, Series 1963,
dated February 1, 196~. in the original prinCipal amount of $300,000
..-
.
.
(f) Remaining Bonds - the remaining $250,000 revenue
bonds authorized at the election held. in the City on the 15th day
of December, 1962, and which the City expressly reserves the right
to issue in Section 10.06 of this ordinance.
(g) Additional Bonds - the additional parity revenue
bonds that the City expressly reserves the right to issue in
Section 10.07 of this ordinance.
SECTION 9: SECURITY FOR BONDS, RET"iAINING BONDS A.!.'W
ADDITIONAL BONDS: That the Bonds, the Previously Issued Bonds
(and, when issued, the Remaining Bonds and the Additional Bonds)
are payable from and secured by a first lien on and pledge of the
revenues of the System after deduotion therefrom of the reasonable
expenses of maintenance and operation of said System. The Bonds,
the Previously Issued Bonds, and, when issued, the Remaining Bonds
and the Additional Bonds shall be in all respects on a parity and
of equal dignity with one another.
SECTION 10: PLEDGE OF NI:'I' RE,TSN'JES. That all of the
net revenues from the operation of the System, with the exception
of those in excess of the amounts required to establish and main-
tain the funds as hereinafter provided, are hereby irrevocably
pledged to the payment OI' th2 Bon,ds, the Previously Issued Bonds,
and, when issued, the RJl;" i:,i:'1g Bonds and the Additional Bonds,
subject to the t2~~S and provisioQs of this ordinance. For the
benefit of the original purohaser of the Bonds and for the bene-
fit of any and all subsequent holders of said Bonds, interest
coupons, or any part thereof, and i~ addition to all other pro-
visions a~d 00venants aDd th2 IffiIS OT the State of Texas~ and in
this ordiL&,,::-e it is expressly sti~:"i.11ated:
- - i:- RAm~c:
=..:.~- '1"::"'''-'0
The City shall fix and maintain rates
and collec~ charges for the facilities and services afforded by
the Syster,1 ':!hich will produce revenues sufficient at all times:
(~) To pay for all operatioQ, maintenance, depreciation,
replacement, and betterment charges of the System;
.
.
(b) To produce net revenues each year in an amount not
less than one and one-half (1-1/2) times the average annual prin-
cipal and interest requirements on all bonds then outstanding
payable from the revenues of the System;
(c) To establish and maintain the Bond Fund and the
Reserve Fund as provided in this ordinance, and in the ordinance
authorizing the issuance of the Previously Issued Bonds, and any
ordinances authorizing the issuance of the Remaining Bonds and the
Additional Bonds; and
(d) To pay all outstanding indebtedness against the
System, other than the Bonds, the Previously Issued Bonds, the
Remaining Bonds, and the Additional Bonds, as and when the same
become due. Provided, also, that no free service or services of
the System shall be alloKed, and should the City or any of its
agencies or instrume:ltalities make use of the services and facili-
ties of the System, payTIent of a reasonable value thereof shall
be made by the City out of funds c.erived from sources other than
revenues and income of the SysteDo
/' 10.02 - USE OF REVEJUES:
The City will deposit, as
collected, all revenues derived from the operation of the System
into a separate account (herein cal:l.'2d the "System Fund") which
shall be kept separEote and alJart L:'o", all other funds of the City.
The System Fund shall be ad~irtistered as follows:
(a) o.'a-1 rd-nn~ -,~,~ ""ct' O'on-'~~' on
~'':' ~~... '-Jv ~c,...:......,...... ~....L ;. ..... J. c... v...:.. ..
From the moneys in the
System Fund, the City shall pay the expenses of maintenance and
operation of the System, including all salaries, labor'; materials,
interest, and such repairs and extensions as in the jto.:'gment of the
governing body of the City are necessary to keep the plant or
utility in operation and render adequate service to such City and
the inhabitants thereof, or such as might be necessary to meet some
physical accident or condition which would othe~~ise impair the
original security.
.
.
(b) Bond Fund. There is hereby created and established
a special fund for the payment of the principal of and interest on
the Bonds, to be known as CITY OF SCHERTZ IvATERHORKS AND SEIlER
SYSTEM ~~]fUE BOND, SERIES 1964 INTEPEST AND SINKING FulvD, here-
inafter referred to as the "Bond Fund". After the payment of all
expenses provided for in the next preceding paragraph, the City,
on or before the lOth day of each month, beginning with the month
of
'l'"ay 1061J.
'J. :} ./ . j
and continuing until all the Bonds have been finally
paid, both as to principal and interest, shall from moneys in the
System Fund, pay into the Bond Fund the following amounts
,
(1) On or before )Iay 10:: 1964, and on or before the
lOth day or e&CD mo~~h thereafter to and including
November lO~ 1964, an amount which is not less than
One-seventh (l/!th) of the interest falling due on
D2cG:Jber 1, 1964, on .the Bonds; and
(2) On or before December 10, 1964, 2nd on or before the
lOth day of each month thereafter, an a~ount which
is not less than:
One-sixth {1/6th)of the next maturing interest
on tl'le Bonds,
anc.
(3) On er before Ju:,e 10, 1993, and on or ::.cfore the
lOth c.ay cf 22~(::11 month thereafter", an c-"::ount vlhich
lS not less ~h~~:
One-twelfth (1/12th) of the next maturing
principal of tho Bondso
If in any montI, .; -.2 Ci'cy shall, f'or any reason, fail ';0 pay into
said Bond FL:L":.:~ the: full a.mounts above stipulated., amu.J.nts equiva-
lent to such deficiency or (eficiencies shall be set apart and
paid into said Bond Fund fro," the first available and unallocated
revenues of the following month or months and shall be in addition
to the a~ounts hereinabove provided to be other~ise paid into said
Bond Fund each month. The mODeys paid into the Bond Fund shall be
deposited in the official depOSitory of the City, and shall be
continuously secured by a valid pledse to the City of direct obli-
gations of the United states of America, having an aggregate market
.
.
value, exclusive of accrued interest, at all times equal to such
Bond Fund. The amount received from the purchaser of the Bonds
as accrued interest thereon from the date of the Bonds to the
date of delivery shall also be placed in the Bond Fund, which
shall reduce by such amount the sums which I'lould other\'Jise be
required to be placed into the Bond Fund from the revenues of
the Sy'stem.
(c) Reserve Fund. There is hereby created and established
a special fund as a reserve for the Bonds, to be known as "CITY OF
SCHERTZ \'JATER\'TORKS AND SE',iliR SYST:GIvI ?.E\'ENu'E BOND SERIES 1964
RESERVE Fln-JDt! hereinatter ::=eferred to as the lrReserve Fundll.
After the pay~ents required by the next two preceding paragraphs
have been made, the City on or before the lOth day of each month,
beginning with 'che month of ;-'Iii.y, 1961;" shall, from moneys in the
System Fund, pay into the Reserve ?und an amount which is not less
than $50.00 per month, and such monthly payments shall be continued
until such time as there is in the Reserve Fund an amount not less
than $3,000. If in any month the City shall, for any reason,
fail to pay into the Reserve Fund the full amount above stipulated,
amounts equivalent to such deficiency or deficiencies shall be set
apart and paid into the Reserve Fund from the first available and
unallocated revenues of the follo"iing month or months and shall be
in addition to the monthly deposit hereinabove provided to be other-
wise paid into said Reserve Fund. The moneys paid into the Reserve
Fund shall be deposited in the off.cial depository of the City and
shall be continuously secured by a valid pledge to the City of
'direct otiigations of the United ~'~tes of America, having an
aggregate market value, ezclccsive of accrued interest, at all times
at leas: equal to such Reserve Fund. The moneys in the Reserve Fund,
at the c)tion of the City, may be invested in direct obligat~ons
0;:' the 'j',1ited States of L':Jcrica (,.,aturing within 10 ;years from the
.
.
date of purchase or maturing before the final maturity of the Bonds
then outstanding, whichever shall first occur, which shall be
deposited in escrow with the local depository under an escrow
agreement. If such moneys are so invested and deposited in escrow,
the City shall have the right to have sold and shall sell through
the escrow agent on the open market a sufficient &uount of such
securities in order to meet its obligations of principal and in-
terest in the event that it does not have sufficient uninvested funds
on hand for such purpose. Under such circQ~stances, the Mayor is
hereby authorized, ordered and directed to give fifteen (15) days'
written notice to such escrovc agene ci' the ::2'-'::'3sity to sell such
securities on the open marketa After said sa12~ ~~2 Doneys result-
ing therefrom shall belong .cc the ~essl-:\le Fund and [.,;::-.,'::.11 be avail-
able to pay such oblig2tic~8 cf principal and interes~ as above
provided. So lor~ as the Reserve Func contains a balance of not
less than $3~OOOj no further payments need be made into said Re-
serve Fund; however, in the event that said balance is ever reduced
to an amount less than $3,000, the monthly pa~nents, as provided
above, shall be continued and resumed until said balance of not
less than $3,000 is again reached and maintained.
(d) .'I'-"u"'- K'''nr1~.
- ."-' "" _ .....,__I.,.~;.:l ~
~'ioneys in the Bond Fund and in the
Reserve Fund shall constitute trust funds, and shall be used solely
for the afor&sai( )urposes until ~ll of the Bonds have been retired~
both as to ~~incipal and iDter2st~ The a)prop~icte officials o~ the
Ci ty shall
3surc that moneys are transferred from the Bond Fund
(and~ if n2cessary, from the RGse~ve Fund) to the bank of pa~~ent
at the p::oper times so that funds ~:Jill be availa.bl'2 fo::? the payment
of the interest on and principal of t~e Bonds as such interest and
principal respectively becoDe cue and payable. When there are moneys
in the Bond Fc~d and Reserve Fund sufficient to make all interest
payments and all principal pa~~1ents due and to become due to the
fi~l2.l matul"'ity of' all bonds tl'J:3D outstanding paya.ble from the reve-
~uss of the Syste~, no further pa~nents need be made into said Bond
~~nd and Reserve Fundo
.
.
(e) Surplus: Any funds remaining in the System Fund
after provision has been made for the payment of the reasonable
costs of maintaining and operating the System, and for the
payments into the Bond Fund and the Reserve Fund for the bonds
herein authorized and the previously issued bonds, as above
provided, and after proviSion has been made for all payments that
may be required by ordinances or proceedings pertaining to
Remaining Bonds or Additional Bonds, may be used for the
retirement of Bonds, Previously Issued Bonds, Remaining Bonds,
or Additional Bonds, or may be used for any other'purpose or
purposes permitted by 12:d.
lOa03 - MAIN1~NANCE AHD OPERAT~Q~: The City shall
maintain the System in good condition and operate the same in an
efficient manner and at a reasonable cost. So long as any of the
Bonds are outstanding, the City agrees to maintain insurance, for
the benefit of the holder or holders of said Bonds, on the System
of a kind and in an amc1J.n.t 1:>'lhicl1 would usuall;sr be c2.rried by
private companies engaged in a similar type of bus~ness. Nothing
in this ordin.ance shall be const~ued as requiri~'"lg the City to
expend 8.":ly funds for -C~~..;i;3 puppose 'ilhich are del,_-,.,"i'e(~ :>:.:~om sources
other than the operation of the System, but nothing herein shall
be construed as preventing the City from doing so.
10.. 04 - ACCOT.JiT:;'~S FISC}:S YEI~FL AND ACCOUl\-;'-~J.~'- REPORTS;
(a) The City scalI keep proper r&~o~ds and accounts (separate
from all other l~ecords and aCCOU;1"SS 0:: 'che City) in l'lhich complet~
and correct el1tries shall be made of all tranS&(;'C,__C'.1S relating to
the System. The City \'iill operate the System on the bs.sis c,: a
fiscal year ending DecemDer 31st~
(b) Not 12,:2:,' t:,an the 15th day of each month, be-
gl" DIY; n~ '.Ji ,-on "'ne 1-"0'- - , ~f' J~'U'"~ lo6LI
__~'"""'-=' ,._\..0_ v_ .. ._-'__ ""'_ ....c:f) ;;; C'J
the City will furnish, with-
out cost to:
.
.
Any holder of any Bond or Bonds
who may so request in writing
a copy of a monthly operating statement signed by an official of
the City, covering the next preceding calendar month, showing the
following information relating to the System;
(l)
(2)
Income and expense
statement;
Balance in each of the Funds created by this
ordinance;
(3) Number of billings for water services of System; and
(4) Number of billings for sanitary sewer ~ervices of
System.
(c) Not later than 90 days after the clost of each
fiscal year beginning with tD8 fiscal year ending~December 31,
1964, the City will furnish without cost, to-
IYlunici~ 1 ;~\~~_:':'~:::ory Oouncil of Texas
Aus tin" Te:x2.2..7
~~y holde~ of sny Bond or Bonds who may
so request i:1 ~'.Jl""i-ciDg~
a signed or 82::"cifiec. CC)Y of a ~:'eport of an independent certified
public accountant or fir," of certified public accountants, covering
the next preceding fiscal y~ar, showing the following information
relating to .Iche System:
(1\ T~comA ~~d eY,'".)~r~'~
\~) -.. -,.~ "'" "' --,-~
ztatement;
(2\
\ )
B$.lar.:.e'2 31:88-:::
(c) ;~(;(;Ountant;! s c..umment regarding th'8 manner in ~'lhich
the City has complied Hith t~e requirements of this ordinance, and
his reco~~endations for any changes or improvements in the
accounting procod~res;
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.
.
(4) List of insur@1ce policies in force at end of the
fiscal year" showing as to each policy, the r-isk covered, the name
of the insurer, and the expiration c.ate;
(5) The number of ullqetered "'later customers of the System
at the end of said fiscal year, if any; and
(6) The number of gallons of water pumped into or taken
by the System and the number of gallons of water sold by the System
during said fiscal year.
10.05 - INSPECTIONS: Any purchaser of 25% or more in prin-
cipal amount of the Bonds, and any ~older of 25% or more in prin-
cipal amount of the Bonds then outstanding shall have the right
at any reasonable time to inspect the System and all records,
accolli~ts, and data of the City relating thereto.
10.06 - HEMAINING VOTED BONDS: The City expressly re-
serves the right to issue the remaining $250,000 bonds authorized
at the election held in said City onv,e 15th day of December, 1962,
in one or more installments, and such Remaining Bonds, when issued,
shall be payable from and secured by a first lien on and pledge of
the net reVGnues of the System in the sa~e manner and to the same
extent as are the Bonds, the Previously Issued Bonds, and such
Re:n2.ining BO:1ds sl:ai.::' be in all respects on a pari'cy and of equal
digni ty \'l:;:ch ti,e Bonds and the Previously Issued BODds. No Remaining
Bonds", hOl",,:~_ 2::C-, shall be issued 1;:.nless:
(~) The City is not then in default as to any covenant,
,
conditi01 or cbl~Gation prescribed by this ordinance or by the
ord:..::.:s:1ce, 2.uthol"izing t;l;.2 iss"O_c..nce of the Previously Issued
Bondw;
(0) E2.ch of the funds created by this ordinance and the
ordinance o~ Jan~ary 29, 1963, contains the ~~ount of money
then required to be on deposit therein;
(c) '::'he average annual net revenues of the System for
either of the. ::'c.,=:"lovJing two-year periods:
.
.
the 24-month period ending on the last day
of the month preceding the month in which the
bond ordinance is adopted authorizing such re-
maining bonds~
or
the then two preceding fiscal year,
as certified by an independent certified public accountant or firm
of certified public accountants, were equal to at least one and one-
half (1-1/2) times the average annual principal and interest require-
ffients on all first-lien revenue bonds payable from the net revenues
of the System that will be outstanding after the Remaining Bonds
then proposed to be issued are issued and sold and ,delivered (such
average annual principal and interest requirements to be computed
on a calendar year basis and as of the date of the Remaining
Bonds then proposed to be issued); prOVided that if during any
part of the two year period all or any part of the System may have
been owned and operated by a private corporation or person, the
earnings and expenses during such time will be adjusted to reflect
municipal ownership and opera"QoD;
Cd)
Prcv~~i0n ~5 mane
-,''''
the bond ordinance authorizing
the Remaining Bo~~s then pr)~osed to be issued for additional pay-
ments into the Recerve FLn~ (in ~~cition to payments required by
'hl s ord ,.,~ ce) se 'n. I. ~..:=i'_:;, ,-q -,kle<:::!,o~,,"\r,_~
~ :... iLc.:.: ...) ~c~ 8.."::' _~ ..... ..~ >..>..... _ _
Fund will in not late~ than
five (5) years from the d2.te of ;:'uch remaining bonds cCl.1tain a
balance or not less thai:, the c.,vel"a3~e annual principal &.nd interest
requirements on all first-lien revenue bonds payable from the net
revenv.es of the Systel"c. that Ti!ill be outstanding af'-::>21'" t 1'"2 Re~r:.aining
Bonds ~hen proposed to be issued are issued and s01~ and delivered
(such average annual prLlcipal and interest recuire,':2"''Cs to be com-
puted on a calendar year oasis a~Q as of the date of the Remaining
Bonds then proposed -'co :Je iBS"J.ed..; and
(e) The ReL:2.:. '.i"lg Bonc.s then proposed to be issued a::..'-:';
made to mature on Jun2 ~0t in each of the years in which they are
scheduled to mature.
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The term "Net Revenues" as used herein shall mean all of
the net revenues of the System (excluding income received speci-
fically for capital items) after deduction of the reasonable ex-
penses of maintenance and operation of the System (excluding
expenditures for capital items).
10.07 - ADDITIONAL PARITY BONDS: In addition to inferior
lien bonds authorized by Chapters 249 and 250, Acts of the 51st
Legislature of Texas, Re~ular Session, 1949, as amended, the
City expressly reserves the right to issue additional parity
revenue bonds in one or more installments, 2nd sucD Additional
Bonds, when issued, shall be payable from and secured by a first
lien on and pledge 'of the net revenues of the System in the SQID8
manner and to the same extent as are the Bonds, the Previously
Issued Bonds and the Re~aining Bonds, and such Additional Bonds
shall be in all respects on a parity and of equal dignity with
the Bonds and the Re"ul:'.ning :Sones, No Additional Bonds, hOI'lever
shall be issued unl.ess t~c "onditi~n2 and terms set forth in
Sectl'on 10 Oo~ hcrco.r' ,o~l,"'--' ',co ~~ ',-Ycc. ',"",,;,,~"'lO'-'" B, o~ds are met
.. '- '- _ _.............0. ~ .._-c v'-'" v__.... _c,-...C:.-L.l._......l_b~" l,
and
said conditic~lS 2.~d t.:'r-ms 8~,"3_11 s))ly 1'-:":::'.th e~'~~2.1 force to the
issuance of s\lch P.J:ic.itional Bono.s ~
SECTION 11: SY:S'.F:n':= OF rrcccrrc',:? I~XD ACG~,!~U!"'~CS; That the
Nay-or, City Secret2.ry and Cit:r 'I-reasur-cl"" are he}:;G~: ,;' instructed
and directed to do a~y and &ll t~~~gs necessary
:.:'eference to
the installing and maintainins ol' 3.. c0mplete SY8 .;;c~:~ of' records and
accounts pGrtaining to the Syste~l: ar..d to make the ",o::-.eys available
for the payment of the Bonds ant-he Previously 1:;;;;",ed Bonds in
the man~er provided by law~
SECTION 12: S=:?;Il'_L CC'JEF,,"'\""S : That the City cove r,,-,-cl'Gs,
by and through this ordi~-:2~~-lce ~ as folloT,'Js:
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12.01 - PO'i!ER TO PLSJ):}E FEilEKlJES. Tha t it has lawful
power to pledge the revenues supporting this issue of Bonds and
has lawfully e;cercised such pm,rer under the Constitution and la\'ls
of the State of Texas~ including said power existing under
Articles 1111 to 1118, both inolusive, Vernon's Texas Civil
Statutes, as amended; and that the Bonds issued hereunder shall
be ratably secured under said pledge of net revenues in such
manner that one Bond shall have no preference over any other
Bond of said issue or over any of the previously issued bonds.
12.02 - RS\lENu~S NOT ENCm~BERED: That, other than the
pledge of net revenues in support of the Bonds as ~~cvided in
this ordinance and the pledge of net revenues in support of the
Previously Issued Bonds~ the rents, revenues, properti2s, and
income of the Syste~ are not in any manner pledged to the payment
of any debt or oblig~tion of the City, nor of said System.
12:; 03 - SXLE CE :S~'.JCJI/IES.Al~CE OF SYSTErlJ: AND IB5UAHCE OF
REFD1\DING BOrfDS: ~h2t so l02g as any of the Bonds authorized
herein or the Prev~~c,,:i~lJ =.~;;::(.'.ed Bonds remain outstancj.t;g, the
City vlill not sell ::JJ.:' eilc.1..:n1be:r .che System or any substantial part
thereof, and
-{-',..-.......+-
\-'.l.lC~v :J
wit.h tl:.e'exce)tion
of the Remain::'-:; Bonds
mentioned in Section 10.05 hereof s.nd the Additions.::' :2,)~1ds men-
tioned in Section
10 "7 1"e ,...,~nT""
_ ~v _,I. _'-'-'_,
when issued in accordance v,,-::' th
all the terms and conQitio~s of this ordinance~ it will not e~-
cumbel""> the revenues or..... the System unless such encwnbrat:ce is made
junior and subordinate to t::c Bonds and to all the p~~visions of
this ordinance. Provided, ~GieVe~, that the Bonds, Previously
Issued Bonds:J Rewainir':.:?; :SOl1C~S a:.-:,l J~ddi tional Bonds ma~T be ::....'21' n~1':3:d.
with the consent of t~-.Le holde::....s t~lereof' (except that as to b8nds"
Previously Issued Bct_c,sj R'8;:'!0..l~i~'lg BOEdSj 01'" Additional Bonds
which have matured by Dor~al ~at~rity or through the eX2rcise of
option of prior reo.err:p":- _ - pl"'ovisions, such consent shall not be
necessary), and the re:::'.:._:1g bonds so issued shall enjoy complete
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.
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equality of l~n with the portion of outstanning first-lien
revenue bonds which is not so refunded, if any there be, and the
refunding bonds shall continue to enjoy the priority of lien that
may have been enjoyed by the bonds refunded; prOVided, if only a
portion of the first-lien revenue bonds t~en outstanding is so
refunded and if the refunding bonds are issued in such
manner that the interest rate is increased or that any refunding
bond matures earlier than any of the outstanding ftzt-lien revenue
bonds which are not refunded, then such refunding bonds may be
issued only if the terms and conditions set forth in Section 10.06
hereof with respect to Rerr,aining Bonds are met, and such terms and
conditions shall apply with equal force to such refunding bonds.
Any refunding bonds may be either delivered to the holders of a
like amount of thel~d8rlyin~ bonds upon simultaneous surrender
and cancellation of such u~1derlying bonds, or, if authorized by
law, may be sold a~1d delivered to purchasers pursuant to payment
therefor for not less tl-;.2n pa~ and accrued interest, in which
event the proceeds of sale and delivery shall be applied to the
payment of the unde~lyi0gmLlds authorized to be refunded.
12~o4 - :;:.:0 CC~".::?-;~:~I;.'fG SYS:IE=,:: That the City further
covenants~ reaffirms 2nd 2gre0s~ to the extent it leba11y ~ay,
that so 1CD3 as any of the Bonds~ the Previously I33~ed Bonds, or
interest thereon are o.L.:~-::;stal1ding~ no franchise shall De granted
for the installation or cpe~ation of any competing system, that
the City Fill prohibit the cgeratic~ of any system other than
thase O'c'.c',o'd by the City, anc. that the operation of any such system
by anyo;;o; other than the City is hereby prahibited.
SECTION 13:
CRDlnANC~ IS CONTRACT: That the provisions
0'1' this ordinance shall constitc:te a contraot 'cec~',Jeen the City and
ths hclder or holders from time to time of ,the bo~ds~ and after the
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,
.
.
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issuance of any of said Bonds~ no change~ variatioD3 or altera-
tion of any kind in the provisions of this ordinance Day be made
until all o~ said Bonds have been paid in full as to both princi-
pal and interest.
SEC~'ION ll~: ~~PPEOVj\L AiJD REGJB TRATION DF BONDS BY
STATE OFFICERS: That it shall be the duty of the Mayor to
submit the record of said Bonds and the Bonds to the ~ttorney
General of the State of Texas for exrunination and approval~
and thereafter to have such Bonds registered by the CODptroller
of Public Accounts of the State of Texas.
SECTION l5~ SALE OF EOt~S: That the sale of said
Bonds to
M. E. ALLISON & CO., INC.
SAN ANTONIO, TEXAS
at a price eC:-::'21 to -;-:;1".:e ~J::':incipal amount thereof plus accl"ued
interest therecn f~on the Q2te thereof to the date of actual
delivery, subj ect to tl1.e '~.:L.:lQualii.ied approving opinion as to the
legality of said Bonds ~y 0~C Attorney General of the state of
Texas and ~uuas~ HugueDi~ ~~d E20thjlanj Attorneys, D~llas~Texas3
is hereby authorized$ app~oved5 ~atified and confir~ed. When
said Bonds have been approved ~y said Attorney General and regis-
tered by the Comptrolle~ of Putl~c Accounts of the State of
Texas" they shall be dGl:i.v0::'ed .::) the purchasers c_p:, receipt of
the full purchase price.
::::~~C'TIOI\J 2-6: DUTIES C)l;"l CITY OFFIG'.2:RS: Tha t the ,ayor,
the City 8c~retary~ and other appropriate officials 0: the City
are here~y authorized and directed to do any and all thin~
necessary or sonvenient to carry out the provisions of this
ordinance.
'"~_',:'IOH 17: ~~l','~RGENCY" The publiC importance of t>is
meaSU1"8 :;
:~ the fact t~at it is to the best interest of the City
.
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to provide funds for the purpose designated by the issuance and
delivery of the bonds authorized by this ordinance at the earliest
possible date, for the iDmediate f~eservation of the public peace,
property, health and safety of the citizens of the City of Schertz,
constitute and create an emergency and an urgent public necessity
requiring that this ordinance be passed ~nd take effect and be
in force immediately from and after its passage.
PASSE:;) AND APPROVED, this the 15r:&..day of April, 1964
S:2xas
.ATTEST:
City sedtfi/i;:c;i:ofc,~rtz, Texas
(City Seal)
-j
~O;;'.