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O-89-5-68ORDINggB No 89 ORDINANCE AUTHORIZING ISSUANCE OF $90,000 "CITY OF ALLEN, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1968," DATED JUNE 1, 1968 'HE STATE OF TEXAS X AUNTY OF COLLIN :ITY OF ALLEN X ON THIS, the �f;4 day of May 1 68, the City Council f the City of Allen. Texas, convened insession, beim -pen to the public, at the regular meeting place thereof in the City Hall, there being present and in attendance the following members, to -wit: FRANK DUCCER MAYOR DAN STRONG) ROBERT LOWMAN ) MACK HOLLOWAY ) ALDERMAN Le ROY EWEN ) CLAUDE WHITAKER ) and with the following absent; _ constituting a quorum; and, among other proceedings had were the following; Mayor Lugger introduced a proposed ordinance. The ordinance was read in full. Alderman made a motion that any rule requiring ordinances to be r ad more than one time or at more than one meeting be suspended. The motion was seconded by Aldeman �i �,L /Ln/LJ:,F.,.I and carried by the following vote: AYES: Aldermen "Strong, Lowman, Holloway, Ewen and Whitaker. NOES; None. Bio Alderman �. _f rµ. made a motion that the ordi- n ce ba pass gd f M. The motion was seconded by Alderman L' �(/,.� L and carried by the following vote: AYES; Aldermen Strong, Lowman, Holloway, Ewen and Whitaker. NOES: None. The mayor announced that the ordinance had been finally passed. The ORDINANCE is as follows; AN ORDINANCE by the City Council of the City of Allen, Texas, authorizing the issuance of $90,000 "CITY OF ALLEN, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE 80NDS, SERIES 1968," dated June 1, 1968, of which the sum of $25 000 shall be for the purpose of improving and ex- tending said City's Waterworks System, and the sum of $65,000 shall be for the purpose of improving and extending said City's Sewer System, as authorized by the General Laws of the State of Texas, particularly Article 1111 at seq., V.A.T.C.S.; prescribing the form of the bonds and the form of the interest coupons; pledging the net revenues of the City's Waterworks and Sewer System to the payment of the principal of and interest on said bonds; enacting provisions incident and relating to the subject and purpose of this ordinance; and declaring an emergency. WHEREAS, pursuant to an election duly and legally called and held for the purpose on the 3rd day of August, 1963, the City Council of the City of Allen became authorized and em- powered to issue $100,000 special obligation bonds for the purpose of improving and extending said City's Waterworks System, and $150,000 special obligation bonds for the purpose of improving and extending said City's Sewer System, payable solely from and equally secured by a first lien on and pledge of the net revenues of the City's Waterworks and Sewer System; and, WHEREAS, the City Council has determined that a portion of the bonds heretofore authorized have been issued and sold pursuant to an ordinance of the City Council, and that a tabu- lation correctly reflecting the amounts of bonds authorized as aforesaid, the amount previously issued pursuant to the voted authorization, the amounts being issued pursuant to this ordi- nance, and the balance then remaining is as follows: ElectionAmount Amount Amount previously Being Amount Date Purpose Voted Issued Issued Remaining 8-3-63 Waterworks Improvements 6 Extensions 8-3-63 Sewer System Improvements 6 Extensions $100,000 $75,000 $25,000 -0- $150,000 $85,000 $65,000 -0- AND WHEREAS, it is now found and determined by the City Council and is its judgment that the remaining amounts of bonds voted for the purposes above specified should now be issued; therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN, TEXAS: SECTION 1: Authorization - Princioal Amount - Designation,. That in order to borrow said aum of NINETY THOUSAND DOLLARS ($90,000) of which the am of $25,000 shall be for the purpose of improving and extending said City's Waterworks System, and $65,000 shall be for the purpose of improving and extending said City's Sewer System, the City Council of the City of Allen, Texas, by virtue of the authority expressly conferred by the resident qualified electors of said City voting at the afore- said election, and pursuant to the General Laws of the State Ij of Texas, particularly Article 1111 at seq„ V.A.T,C.S., has determined that there shall be issued and there is hereby U ordered to be issued a series of coupon bonds in the total principal sum of NINETY THOUSAND DOLLARS ($90,000), to be designated "CITY OF ALLEN, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1968," which series of bonds, together with the outstanding and unpaid previously issued bonds (as i' herein defined), shall be payable as to both principal and interest solely from and secured by a first lien on and pledge ' of the net revenues of the City's Waterworks and Sewer System. i SECTION 2: Date - Numbers - Maturity ;-Renomination, Said bonds shall be dated June 1, 1968; shalbe numbered con- secutively from One (1) through Eighteen (18); shall each be in denomination of Five Thousand Dollars ($5,000); and shall become due and payable serially, without right of prior redemp- tion, on April 1 in each of the years in accordance with the following schedule: BOND NUMBERS (All Inclusive) MATURITY AMOUNT 1 1970 $5,000 2 3 1971 5,000 4 1972 5,000 5 1973 5,000 6 1974 5,000 7 1975 5,000 8 1976 5,000 9 1977 5,000 10 1978 5,000 11 1979 5,000 12 1980 5,000 13 1981 5,000 14 1982 5,000 . 1983 5,000 15 1984 5,000 16 1985 5,000 17 1986 5,000 18 1987 5,000 N SF,CTION 3; Interest. That said bonds shall bear interest from date to maturity at the rate of FIVE AND THREE-FOURTHS PER CENTUM (5-3/47.) per annum, such interest to be evidenced by proper coupons attached to each of said bonds; and said interest shall be payable on April 1, 1969, and semi-annually thereafter on October 1 and April I in each year. i SECTICN 4: Place of payment. Both principal of and interest on this issue of bonds shall be payable in lawful money of the United States of America, without exchange or collection charges to the owner or holder, at the MERCANTILE !' NATIONAL BARK AT DALLAS, Dallas, Texas, upon presentation and surrender of bonds or proper coupons. SECTION 5: Execution of Bonds and Coupons. The seal of said City may be impressed on each of said bonds or, in the alternative, a facsimile of such seal may be printed on the said bonds. The bonds and interest coupons appurtenant thereto may be executed by the imprinted facsimile signatures of the Mayor and City Secretary of the City, and execution in such manner shall have the same effect as if such bonds and coupons had been signed by the Mayor and City Secretary in person by their manual signatures. 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 desig- nated in writing to act for the Comptroller) shall be required to be manually subscribed to such bonds in connection with his registration certificate to appear thereon, as hereinafter pro- vided; all in accordance with the provisions of Article 717j -I, V.A,T.C.S. 11 , SECTION 6: Form of Bonds. That the form of said bonds shall be substantially as follows: NO. UNITED STATES OF AMERICA $5,000 STATE OF TEXAS COUNTY OF COLLIN CITY OF ALLEN, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BOND, SERIES 1968 The CITY OF ALLEN, a municipal corporation of the State of Texas, acknowledges itself indebted to and, FOR VALUE RECEIVED, hereby promises to pay to bearer, without right of prior redemp- tion, as hereinafter stated, the sum of FIVE THOUSAND DOLLARS ($5,OGO), in lawful money of the United States of America, or. the FIRST DAY OF APRIL, 19 , with interest thereon from the date hereof to maturity at the rate of FIVE AND THREE-FOURTHS PER CENTUM (5-3/4X) per annum, payable on April 1, 1969, and seri-annually thereafter on October 1 and April 1 in each year, and interest falling due on or prior to maturity hereof is pay- able only upon presentation and surrender of the interest coupons hereto attached as they severally become due. BOTH PRINCIPAL of and interest on this bond are hereby made payable at the MERCANTILE NATIONAL BANK AT DALLAS, Dallas, Texas, without exchange or collection charges to the owner or holder, and the said City of Allen, Texas, is hereby held and firmly bound to apply the pledged appropriated net revenues of its Waterworks and Sewer System to the prompt payment of principal of and interest on this bond at maturity and to pay said prin- cipal and interest as they mature. x 4 THIS BOND is one of a series of bonds of like tenor and -- effect, except as to number and maturity, aggregating in amount NINETY THOUSAND DOLLARS ($90,000), numbered cansecutively from One (1) through Eighteen (18), each in denomination of Five Thousand Dollars ($5,000), of which the sum of $25,000 is for the purpose of improving and extending said City's Waterworks System, and the sum of $65,000 is for the purpose of improving and extending said City's Sewer System, in accordance with the Constitution and laws of the State of Texas, particularly Article 1111 at seq.V,A,T.C.S., and by authority of a vote of the resident qualified property taxpaying electors of said City, who owned taxable property therein and had duly rendered the same for taxation, voting at an election held for that pur- pose within said City on the 3rd day of August1963, and pur- suant to an ordinance passed by the City Council of the City of Allen, Texas, and duly recorded in the Minutes of Said City Council. THE DATE of this bond, in conformity with the ordinance above mentioned, is JUNE 1, 1968. THIS BOND and all bonds of the series of which it is one constitute special obligations of the City of Allen, Texas, and, together with the outstanding and unpaid previously issued bonds (as defined in the ordinance authorizing the series of bonds of which this is one), are payable solely from and equally secured by a first lien on and pledge of the net revenues of the City's Waterworks and Sewer System. THE CITY, however, expressly reserves the right to issue further and additional bond obligation, in all things on a parity with the outstanding previously issued bonds and the bonds of this series, payable from and equally secured by a first lien on and pledge of the net revenues of the City's Waterworks and Sewer System; PROVIDED, HOWEVER, that any and all such further bonds may be so issued only in accordance with and subject to the covenants, limitations, conditions and res tric- tions relating thereto which are contained in the ordinance autho- rizing this series and to which said ordinance reference is hereby made for more complete and full particulars. THE HOLDER hereof shall never have the right to demand pay- ment of this obligation out of any funds raised or to be raised by taxation. AND IT IS HEREBY CERTIFIED AND RECITED that the issuance of this bond, and the series of which it is a part, is duly authorized by law; that all acts, conditions and things required T exist and to be done precedent to and in [helsauance of thin nd to render the same lawful and valid have been properly done, ve happened and have been performed in regular and due time, orm and manner as required by the Constitution and laws of the j State of Texas and the ordinance hereinabove mentioned; that this series of revenue bonds does not exceed any constitutional or statutory limitation; and that provision has been made for the payment of the principal of and interest on this bond and the series of which it is a part by irrevocably pledging the net revenues of the Waterworks and Sewer System of the City of Allen, Texas. IN TESTIMONY WHEREOF, the City Council of the City of Allen, Texas, in accordance with the provisions of Article 717-1, V.A.T.C.S., has caused the seal of said City to be impressed or a facsimile thereof to be printed hereon, and this bond and its appurtenant coupons to be executed with the imprinted fac- simile signatures of the Mayor and City Secretary of said City, as of the FIRST DAY OF JUNE, 1968. COUNTERSIGNED:Mayor, City of Allen, Texas City Secretary, City of Allen, Texas SECTION 7: Coupon Form. The form of said interest coupons shall be substantially as follows: NO. ON THE FIRST DAY OF $ 19_, the City of ALLEN, a municipal corporation of the State of Texas, hereby promises to pay to bearer, out of funds specified in the bond to which this coupon is attached (without right to demand payment out of any funds raised or to be raised by taxation) and in lawful money of the United States of America, without exchange or collection charges to the owner or holder, at the MERCANTILE NATIONAL BANK AT DALLAS, Dallas, Texas, the sum of DOLLARS 0 ), said sum being months' interest due that day on "CITY OF ALLEN, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BOND, SERIES 1968," dated June 1, 1968. Bond No. City Secretary Mayor i SECTION 8: Form of Comotroller'e Certiflc te. Suba tan tially the following shall be printed on the beck of each bond: OFFICE OF COMPTROLLER X STATE OF TEXAS X REGISTER NO. I HEREBY CERTIFY that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that this bond has been examined by him as required by law, and that he finds that it has been issued in conformity with the Constitution. and laws of the State of Texas, and that it is a valid and binding special obligation of the City of Allen, Texas, payable from the revenues pledged to its payment by and in the ordinance authorizing same, and said bond has this day been registered by me. WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas, , Comptroller of Public Accounts of the State of Texas SECTION' 9: Definitions. For all purposes of this ordinance the following definitions are provided; (a) The term "System" shall mean the City's Water- works and Sewer System, including all present and future extensions, additions, replacements and improvements thereto. (b) The term "net revenues" shall mean the gross revenues of the System less the expense of operation and maintenance, including all salaries, labor, materials, repairs and extensions necessary to render efficient service, provided, however, that only such repairs and extensions as in the judgment of the City Council, reasonably and fairly exercised, are necessary to keep the System in operation and render adequate service to the City and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise impair the bonds, the previously issued bonds, and the additional bonds shall be deducted in determining "net revenues." (c) The term "bonds" shall mean the $90,000 revenue bonds authorized by this ordinance. (d) The term "previously issued bonds" shall mean the outstanding and unpaid: (1) "TOWN OF ALLEN WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1958," dated April 1, 1958, in the original principal amount of $140,000, authorized by ordinance passed and adopted on March 13, 1958; (2) "TOWN OF ALLEN WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1961," dated July 1, 1961, in the original principal amount of $60,000, authorized by ordinance passed and adopted on June 21, 1961; (3) "CITY OF ALLEN WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1966," dated November 1, 1966, in the original principal amount of $160,000, authorized by ordinance passed and adopted on October 20. 1966. (e) The term "additional bonds" means the additional parity revenue bonds which the City reserves the right to issue. (f) The term "fiscal year" shall mean the twelve- months' period ending June 30 of each year. The Series 1968 Bonds authorized hereby are parity "Additional Bonds" as defined and permitted in the ordinance dated March 13, 1958, and Sections 11 through 28 of said ordinance are adopted by reference and shall be applicable to said Series 1968 Bonds for all purposes, except to the extent hereinafter specifically modified and supplemented. The Series 1968 Bonds and the pre- viously issued bonds are and shall be secured by and payable from a first lien on and pledge of the net revenues of said City's Waterworks and Sewer System, and all of said obligations shall be on a parity and of equal dignity in all respects. SECTION 10: That, in addition to all other amounts re- quired by the ordinances, respectively, authorizing the previ- ously issued bonds, there shall be deposited into the Interest and Sinking Fund, created for the benefit of said previously issued bonds and all additional bonds, the following: (a) Such amounts, in equal monthly install- ments, made on or before the 15th day of each month hereafter, as will be sufficient to pay the Interest scheduled to come due on said Series 1968 Bonds on the next interest payment date; and ) Such ual ments`bmade on orobefore ithe 415th day hof eacha amonth —. hereafter, commencing April 15, 1969, as will be sufficient to pay the next maturing principal of said Series 1968 Bonds. SECTION 11: RESERVE FUND. The Reserve Fund neretofore established and supplemented by the ordinance authorizing the previously issued bonds now contains $17,238.96 in cash and book value of investment securities; the amount in said Fund shall be supplemented on or before the 15th day of each month at the rate of $260.00 per month (beginning June 15, 1968) until such time as the said Fund shall contain $27,638.96 and thereafter such Fund shall be supplemented by monthly deposits (on the 15th day of each month) of $135.00 until said Fund shall contain $30,338.96. The Reserve fiord shall be used to pay the principal of or interest on bands, previously issued bonds, or additional bonds falling due at any time when there is not sufficient money avail- able in the Interest and Sinking Fund, No payments need be made into the Reserve Fund after there shall have been accumulated therein an amount equal to the average annual requirement of each of the series of previously issued bonds and the bonds; provided, however, that at such time as the previously issued bonds have been paid off, cancelled or refunded, or provision has been made for their payment (both as to principal and in- terest) under any law then applicable so that such bonds are no longer outstanding, then the amount to be acc_c_lsted and main- tained in the Reserve Fund shall be an amount not less than the average annual principal and interest requirements on all bonds (including any additional amount to be deposited ttorein by reason of the issuance of the bonds and additional 'oonds) which are payable from a first lien on and pledge of the net revenues i, of the System. Any increased amount to be accumulated in the Reserve Fund (by reason of the issuance of additional bonds) shall be deposi- ted in said Fund in not to exceed five years and one month from the date of the passage of the ordinance authorizing the additional bonds. Whenever any money in the Reserve Fund is utilized for the purpose for which said Fund is created, payments into the Fund shall be resumed at the rate not less than $375.00 per month until such time as the Reserve Fund has been fully restored to the amount then required to be on deposit therein. SECTION 12: Bonds as Negotiable Instruments. Each of the bonds herein authorized shall be deemed and construed to be a "Security," and as such a negotiable instrument, within the meaning of Article R of the Uniform Commercial Code. G SECTION 13: Mayor to Nave Charge o£ Records end Bonds. Tha Mayor o£ the City of All, shall be and he 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 bonds ! herein authorized pending their approval by the Attorney General and their registration by the Comptroller of public Accounts. SECTION 14: Confirmation of Sale. The sale of the bonds herein authorized to at the price of par and accrued interest to date of delivery, plus a premium of $ is hereby confirmed. Delivery of said bonds shall be made to said purchasers as soon as may be after the adoption of this ordinance, upon payment therefor in accordance with the terms of sale. SECTION 15: Printl Opinion ed Lef:a obligation to accept delivery of the bands herein authorizedis reg subject to their being furnished a final opinion of Messrs. Dumas, Huguenin and j SoothmanAttorneys, Dallas, Texas, approving such bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such bonds. Printing Of a true and correct copy of said opinion on the reverse side of each of such bonds with appropriate certificate pertaining thereto executed by is hereby facsimile signature of the City Secretary approved and authorized. SECTION 16: Emergency. The fact that it is to the best interest of the CiCy to provide improving and extending theCifunds ty'sWaterworks and sewersystemat the earliest possible date constitutes and creates an ener- gency and an urgent public necessity requiring that this ordi- Hance be passed and take effect as an emergency measure, and that any rule requiring one ti a oratmorethan one omeeting ebe tsuspended, o be read more anynsuch rule s passed as hereby an emergency d and h measure and ehallis ntakeseaccordingly nbe in force immediately from and after its passage. PASSED AND APPROVED, this the .J�Y da of May 1968. i' a - i Mayor, City of Alle , xas ATTEST: City Secretary, City f Allen, Texas O F..�,4` '�•'•• t.6iC Seal � 40 GENERAL CERTIFICATE , THE STATE OF TEXAS I COUNTY OF COLLIN X CITY OF ALLEN X i, WE, the undersigned, Mayor and City Secretary, respectively, 'i of the City of Allen, Texas, DO HEREBY CERTIFY as follows; G 1. Relative to No -Default. IThat the City of Allen, Texas, is not in default as to any covenant, condition or obligation contained in the ordinances authorizing the issuance of the "TOWN OF ALLEN WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1958," dated April 1, 1958; the "TOWN OF ALLEN WATERWORKS AND SEWER SYSTEM REVENUE BONDS , SERIES 1961," dated July 1, 1961; and the "CITY OF ALLE.1' WATER- ' WORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1966," dated November 1, 1966; and that there is on hand in the Interest and Sinking Fund pertaining to the above named bonds the sum of $ ; and that there is on hand in the Reserve Fund of the above named bonds the sum of $17,238.96; and there is on hand in the Emergency Fund the sum of $5,000. 2. Relative to Income and Revenues of the City's water- s works andSawer Svs tem That the following is a schedule of the gross receipts, operating expenses and net revenues of the City's Waterworks and Sewer System (as shown by the records of the City) for the years stated: Fiscal Year Gross Operating Net Ending 6-30 Receipts Expenses Revenues 1964 $41,204 $ 12,569 $ 28,635 1965 42,987 16,640 26,347 1966 47,248 16,631 30,617 1967 49,044 14,731 34,313 I' 3. Rel -five to Non -encumbrance of the CSty's Waterworks and Sewer System. That save and except for the pledge of the income and reve- nues of the City's Waterworks and Sewer System to the payment of the principal and interest to become due with respect to the "CITY OF ALLEN, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1968," dated June 1, 1968; and with respect to the out- standing and unpaid "Town of Allen Waterworks and Sewer System Revenue Bonds, Series 1958," dated April 1, 1958; the "Town of i - Allen Waterworks and Sewer System Revenue Bonds, Series 1961," dated July 1, 1961; and the "City of Allen Waterworks and Sewer System Revenue Bonds, Series 1966," dated November 1, 1966, said income and revenues of said System have not been pledged or hypothecated in any other manner or for any other purpose; that there are no liens, encumbrances or any other indebtedness whatsoever outstanding against the City's Waterworks and Sewer System or the income and revenues of such System; and that the above bonds evidence the only lien, encumbrance or indebtedness of said System or the income and revenues of such System. 4. Relative to Ownershiu of Source of Water Supply. That the City of Allen, Texas, owns as a part of its Water- works System a complete source of water supply, being at this time -- One well and water storage facilities consisting of -. I I 5. Relative to Utility Properties, That to our certain knowledge the City of Allen, Texas, has owned and operated its Waterworks System since the acquisi- tion thereof by said City in the year lel-il ; and that the Cit h d d d r y as owne an operate its Sewer System since the acquisi- tion thereof by said City in the year That to this day no question has arisen and no proceedings of any nature have been instituted in any manner questioning the City's right and title to said utility properties or its authority to operate same, and that no question has arisen and no proceedings of any nature have been instituted in any manner questioning the City's right and title to any of the additions, ! extensions or betterments to said utility properties constructed or acquired since the original acquisition thereof. 6. Relative to Waterworks and Sewer System Rates Charged Customers by the City of Arlen, Texas. That the following rates are now being charged by the City of Allen, Texas, for water and &ewer services: Water Rates: (Monthly Billing) First 1,500 gallons $3.00 (Minimum) Next 8,500 gallons .95 per 1,000 gallons Next 10,000 gallons .50 per 1,000 gallons Next 10,000 gallons .35 per 1,000 gallons Excess .25 per 1,000 gallons That a tapping fee of $65.00 for connection with the Water- works System shall be paid by each customer. Reconnection charge - $ 2.00 Sewer Rates: '(Monthly Billing) Residential $ 3.00 Filling Station 6.00 Washateria 6.00 Grade School 12.00 High School 15.00 IzA That a connection charge of $75.00 for connection with the Sewer System shall be paid by each customer. 7. Relative to Incumbency and Incorporatim. That the following are the duly qualified and acting offi- earn of said City of Allen, Texas; FRANK DUGGER r 4� DAN STRONG i! ROBERT LOWMAN MACK HOLLOWAY LeROY EWEN j; CLAUDE WHITAKER and A. C. STORY I- A. C. STORY MAYOR ALDERMAN ALDERMAN ALDERMAN ALDERMAN ALDERMAN CITY SECRETARY CITY TREASURER That said City is incorporated under the General Laws of the State of Texas and 1s operating under the Aldermanic form of government pursuant to Chapters 1 through 10, Title 28, Revised Civil Statutes of 1925, as ascended. WITNESS OPR HANDS AND THE SEAL OF THE CITY OF ALLEN, TEXAS,. this theZOWday Of Mev . 1968. yor, City of Allan as City Se�y, Cy� Allen, Texas