O-272-8-79r
Ordinance No. 272
AN ORDINANCE by the City Council of the City of
Allen, Texas, authorizing the issuance of
$1,300,000 "CITY OF ALLEN, TEXAS, WATERWORKS
AND SEWER SYSTEM REVENUE BONDS, SERIES 1979
dated August 1, 1979, as authorized by the
General Laws of the State of Texas, particularly
Article 1111 et 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 combined Waterworks and Sanitary Sewer
System to the payment of the principal of and
interest on said bonds; enacting provisions
incident and related to the subject and purpose
of this ordinance; and providing an effective
date.
WHEREAS, pursuant to elections held within the City on
January 15, 1972 and June 30, 1979, revenue bonds payable from
and secured by a pledge of the net revenues of the City's Water-
works and Sanitary Sewer System were approved and authorized to
be issued by the City Council, a summary of the amount of revenue
bonds voted, the respective purposes for which the same can be
issued, amounts heretofore issued and amounts remaining to be
issued being as follows:
ELECTION
A_VD NT
AMOUNTS
UNISS1ED
DATE
AUTHORIZED
PU'ZPOSE
HERETOFORE ISSUED
BALANCE
1-15-72
$1,200,000
Water
Imp & Ext
$900,000',
$ 300,000
1-15-72
300,000
Sewer
Imp & Ext
198,000%
102,000
6730-79
2,300,000
Water
Imp & Ext
-0-
2,300,000
6-30-79
700,000
Sewer
Imp & Ext
-0-
700,000
-Series 1972
AND WHEREAS, this Council hereby finds and determines that
revenue bonds from said voted authorizations in the total principal
amount of $1,300,000 should be issued and sold at this time (being
$900,000 for improvements and extensions to the City's Waterworks
System - consisting of the unissued balance of bonds voted
January 15, 1972 and $600,000 of the bonds voted June 30, 1979, and
$400,000 for the purpose of making improvements and extensions to
the City's Sanitary Sewer System - consisting of the unissued
balance of bonds voted January 15, 1972 and $298,000 of the bonds
voted June 30, 1979); and
WHEREAS, this Council further finds and determines that the
revenue bonds authorized herein can be issued on a parity with the
City's outstanding and unpaid revenue bonds payable from and
secured by a first lien on and pledge of the net revenues of the
City's Waterworks and Sanitary Sewer System (hereinafter referred
to and defined as "previously issued bonds") in that (i) the City
is not now in default as to any covenant, condition or obligation
prescribed in the ordinance authorizing the issuance of the
previously issued bonds, (ii) each of the special Funds created
for the payment and security of the previously issued bonds
contains the amount of money now required to be on deposit therein,
(iii) the City can obtain a report of an accountant showing the
net earnings of the City's Waterworks and Sewer System for the
completed fiscal year next preceding the adoption of this ordinance
are equal to at least 1-1/4 times the average annual principal
and interest requirements of all bonds to be secured by a first
lien on and pledge of the net revenues of said System after giving
effect to the issuance of the bonds herein authorized, (iv) the
bonds herein authorized shall mature on June 1 in each year and
(v) this ordinance shall provide for deposits to be made in the
special Funds created for the payment and security of the
previously issued bonds and additional bonds issued on a parity
therewith of amounts sufficient to pay the principal of and interest
on the bonds herein authorized and to accumulate and maintain a
reserve equal to not less than the average annual requirement for
the payment of principal of and interest on all bonds to be secured
by a first lien on and pledge of the net revenues of said System
after giving effect to the issuance of the bonds herein authorized
to be issued and the additional reserve amount required shall be
accumulated within five years and one month from the date of the
adoption of this ordinance; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
TEXAS:
SECTION 1: That, in order to borrow the sum of NINE HUNDRED
THOUSAND DOLLARS ($900,000) for the purpose of constructing
improvements and extensions to the City's Waterworks System and
FOUR HUNDRED THOUSAND DOLLARS ($400,000) for the purpose of con-
structing improvements and extensions to the City's Sanitary Sewer
System, the City Council of the City of Allen, Texas, by virtue of
the authority expressly conferred at the aforesaid elections and
pursuant to the General Laws of the State of Texas, particularly
Article 1111 et seq., V.A.T.C.S., has determined that there shall
be issued and there is hereby ordered to be issued a series of
coupon bonds to be designated "CITY OF ALLEN, TEXAS, WATERWORKS
AND SEWER SYSTEM REVENUE BONDS, SERIES 1979", aggregating in
principal amount ONE MILLION THREE HUNDRED THOUSAND DOLLARS
($1,300,000), which bonds, together with the outstanding and unpaid
previously issued bonds (as herein defined) shall be payable as to
both principal and interest solely from and equally secured by a
first lien on and pledge of the net revenues of the City's com-
bined Waterworks and Sanitary Sewer System.
SECTION 2: That said bonds shall be dated August 1, 1979;
shall bee numbered consecutively from One (1) through Two Hundred
Sixty (260); shall each be in the denomination of Five Thousand
Dollars ($5,000); and shall become due and payable serially on
June 1 in each of the years and bear interest at the per annum
rates in accordance with the following schedule:
BOND NUMBERS INTEREST
(All Inclusive) MATURITY AMOUNT RATE
1
1982
$ 5,000
7.00%
2
1983
5,000
7.00%
3
1984
5,000
7.00%
4
and
5
1985
10,000
7.00%
6
and
7
1986
10,000
7.00%
8
and
9
1987
10,000
7.00%
10
and
11
1988
10,000
7.00%
12
and
13
1989
10,000
7.00%
14
to
16
1990
15,000
7.50%
17
to
19
1991
15,000
7.50%
20
to
23
1992
20,000
7.50%
24
to
27
1993
20,000
7.50%
28
to
31
1994
20,000
7.50%
32
to
36
1995
25,000
7.50%
37
to
41
1996
25,000
7.50%
42
to
46
1997
25,000
7.50%
47
to
52
.1998
30,000
7.50%
53
to
58
1999
30,000
7.50%
59
to
65
2000 t
35,000
7.75%
66
to
72
2001
35,000
7.75%
BOND NUMBERS
(All Inclusive) MATURITY
INTEREST
AMOUNT RATE
73
to
80
2002
$40,000
7.75%
81
to
89
2003
45,000
7.75%
90
to
115
2004
130,000
7.75%
116
to
141
2005
130,000
7.75%
142
to
168
2006
135,000
7:75%
169
to
197
2007
145,000
7.75%
198
to
228
2008
155,000
7.75%
229
to
260
2009
160,000
7.75%
PROVIDED, HOWEVER, that the City of Allen reserves the right
to redeem the bonds of this series maturing June 1, 2000, and
subsequent, in whole or in part (but in inverse numerical order
if less than all), on June 1, 1999, or on any interest payment
date thereafter, at the price of par and accrued interest'to the
date fixed for redemption; PROVIDED, FURTHER, that at least thirty
(30) days prior to a date any of said bonds are to be redeemed, a
notice of redemption, signed by the City Secretary (specifying the
serial numbers and amount of bonds to be redeemed), shall have
been filed with the MERCANTILE NATIONAL BANK AT DALLAS, Dallas,
Texas (the paying agent named in each of said bonds); and if the
City shall have made available by the date of redemption funds
sufficient to pay the bonds to be redeemed and accrued interest
thereon, any bond or bonds not presented for redemption pursuant
to such notice shall cease to bear interest from and after the
date so fixed for redemption.
SECTION 3: That said bonds shall bear interest from date
to.maturity at the per annum rates shown above, such interest
to be evidenced by proper coupons attached to each of said bonds;
and said interest shall be payable on June 1, 1980, and semiannually
thereafter on December 1 and June 1 in each year.
SECTION 4: That 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 BANK AT DALLAS, Dallas, Texas,
upon presentation and surrender of bonds or proper coupons.
SECTION 5: That the seal of said City may be impressed on
each of said Tonds 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
designated 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 provided;
all in accordance with the provisions of Article 717j-1, V.A.T.C.S.
SECTION 6: 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 1979
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, the sum of
FIVE THOUSAND DOLLARS
($5,000), in lawful money of the United States of America, on the
FIRST DAY OF -JUNE, with interest thereon from the date
hereof to maturity at the rate of _ PER CENTUM
( %) per annum, --payable on..June 1, 1980, and semiannually
thereafter on December 1 and June 1 in each year, and interest
falling due on or prior to maturity hereof is payable 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 combined
Waterworks and Sanitary Sewer System to the prompt payment of
principal of and interest on this bond at maturity and to pay said
principal and interest as they mature.
THIS BOND is one of a series of bonds, aggregating in principal
(amount ONE MILLION THREE HUNDRED THOUSAND DOLLARS ($1,300,000),
numbered consecutively from One (1) through Two Hundred Sixty (260),
each in the denomination of Five Thousand Dollars ($5,000), issued
for the following purposes, to wit: $900,000 for constructing
improvements and extensions to the City's Waterworks System and
$400,000 for constructing improvements and extensions to the City's
Sanitary Sewer System, in accordance with the Constitution and
laws of the State of Texas, particularly Article 1111 et seq.,
V.A.T.C.S., and by authority of elections held for that purpose
within said City, and pursuant to an ordinance passed by the City
Council of the City of Allen, Texas, and duly recorded in the
Minutes of said City Council_.
AS SPECIFIED in the ordinance hereinabove mentioned, the
City reserves the right to redeem the bonds of said series
maturing June 1, 2000, and subsequent, in whole or in part (but
in inverse numerical order if less than all), on June 1, 1999,
or on any interest payment date thereafter, at the price of par
and accrued interest to the date fixed for redemption; PROVIDED,
HOWEVER, that at least thirty (30) days prior to a date any of said
bonds are to be redeemed, a notice of redemption, signed by the
City Secretary (specifying the serial numbers and amount of bonds
to be redeemed), shall have been filed ,with the MERCANTILE NATI0NAL
BANK AT DALLAS, Dallas, Texas; and if the City shall have made
available by the date of redemption funds sufficient to pay the
bonds to be redeemed and accrued interest thereon, any bond or bonds
not presented for redemption pursuant to such notice shall cease
to bear interest from and after the date so fixed for redemption.
THE DATE of this bond in conformity with the ordinance
above mentioned is August 1, 1979.
THIS BOND and the series of which it is a part constitute
special obligations of the City of Allen, Texas, and, together
with the outstanding and unpaid previously issued bonds (identified
and defined in the ordinance authorizing the issuance of the bonds
of this series) are payable solely from and equally secured by a
first lien on and pledge of the net revenues of the City's combined
Waterworks and Sanitary Sewer System.
THE CITY expressly reserves the right to issue further
and additional revenue bond obligations in all things on a parity
with the boiids of this series and the previously issued bonds, which
shall be payable solely from and equally secured by a first lien on
and pledge of the net revenues of the City's combined Waterworks
and Sanitary Sewer System; PROVIDED, HOWEVER, that any and all such
additional bonds may be so issued only in accordance with and
subject to the covenants, limitations, conditions and restrictions
relating thereto which are set out and contained in the ordinance
authorizing this series of bonds 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
payment of this obligation out of any funds raised or to be raised
by taxation.
AND IT IS HEREBY CERTIFIED AND RECITED that the issuance of
this bond and the series of which it is a part is duly authorized
by law; that all acts, conditions and things required to exist and
to be done precedent to and in the issuance of this bond to render
the same lawful and valid have been properly done, have happened
and have been performed in regular and due time, form and manner
as required by the Constitution and laws of the State of Texas, and
the ordinance hereinabove mentioned; that this series of revenue
bonds does not exceed any constitutional or statutory limitation;
and that provision has been made for the payment of the principal
of and interest on this bond and the series of which it is a part
by irrevocably pledging the net revenues of said combined Water-
works and Sanitary Sewer System of the City of Allen, Texas, as
hereinabove recited.
IN TESTIMONY WHEREOF, the City Council of the City of Allen,
Texas, in accordance with the provisions of Article 717j-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 facsimile
signatures of the Mayor and City Secretary of said City, as of the
lst day of August, 1979.
Mayor, City of Allen, Texas
COUNTERSIGNED:
City Secretary, City of Allen, Texas
SECTION 7: That the form of said interest coupons shall
be substantially as follows:
110.
ON THE FIRST DAY OF
%(unless the bond to which this coupon pertains has been redeemed
in accordance with its terms,) the CITY OF ALLEN, in the County of
Collin, 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), the amount shown hereon in lawful money of
the United States of America, upon presentation and surrender of
this coupon, at the MERCANTILE NATIONAL BANK AT DALLAS, Dallas,
Texas, without exchange or collection charges, such amount being
interest due on such date on "CITY OF ALLEN, TEXAS, VIATERWORKS
AND SEWER SYSTEM REVENUE BOND, SERIES 1979", dated August 1, 1979.
Bond No.
City Secretary
*NOTE TO PRINTER: The expression
on y in coupons maturing December
taining to optional bonds maturing
Mayor
in parenthesis ito be included
1, 1999, and subsequent, Per-
in the years 2000 through 2009
SECTION 8: That substantially the following shall be printed
on the back of each bond:
OFFICE OF COMPTROLLER
REGISTER NO.
STATE OF TEXAS
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: That for all purposes of this ordinance and in
particular mor clarity with respect to the issuance of the bonds
herein authorized and the pledge and appropriation of revenues
therefor, the following definitions are provided:
(a) The term "System" means the City's combined
Waterworks and Sanitary Sewer System, including all present
and future additions, extensions, replacements and improve-
ments in any wise appertaining thereto, whether situated
within or without the limits of said City.
(b) The term "net revenues" means 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 ade-
quate 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 security of any
bonds payable from and secured by a lien on the net revenues
of the System shall be deducted in determining "net
revenues".
(c) The term "bonds" means the $1,300,000 revenue
bonds authorized by this ordinance.
(d) The term "additional bonds" shall mean the addi-
tional parity revenue bonds issued in accordance with the
terms and conditions prescribed in Section 19 hereof.
(e) The term "fiscal year" shall mean the twelve-
month period ending June 30 of each year; provided,
however, at such time as all the previously issued bonds
have been fully paid as to principal and interest or refunded,
the City Council by ordinance duly passed and adopted may
change the fiscal year to another twelve-month period.
(f) The term "bonds similarly secured" shall mean
all bonds issued by the City which are secured by and
payable from a first lien on and pledge of the net
revenues of the System.
(g) The term "previously issued bonds" shall mean the
outstanding and unpaid bonds of the series known as "City
of Allen., Texas, Waterworks and Sewer System Revenue
Bonds;.Series 1972", dated June 1, 1972, and originally
issued in the aggregate principal amount of $1,500,000
SECTION 10: The City hereby covenants and agrees that all of
the net revenues of the System with the exception of those in
excess of the amounts required to establish and maintain the
special Funds created for the payment and security of the bonds
similarly secured, are hereby irrevocably pledged for the
payment of the previously issued bonds, the bonds and additional
bonds, if issued, and the interest thereon, and it is hereby
ordained that the previously issued bonds, the bonds and additional
bonds, if issued, and the interest thereon, shall constitute a
first lien upon the net revenues of the System.
SECTION 11: The City hereby covenants and agrees with the
holders of t e bonds that:
(a) It will at all times charge and collect for
services afforded by the System rates sufficient to pay
all operating, maintenance, depreciation, replacement and
betterment expenses, and other costs incurred in the
maintenance and operation of the System and to p�.y the
interest on and principal of the previously issued bonds
and the bonds and to establish and maintain the special
Funds created for the payment and security of the bonds
similarly secured.
(b) If additional bonds are issued, or if the
System should become legally liable for any other
indebtedness, the City will fix and maintain rates and
collect charges for the services of the System sufficient
to discharge such indebtedness.
SECTION 12: That the City hereby reaffirms its covenant
with the ho ders of the previously issued bonds and agrees with
the holders of the bonds that all revenues derived from the
operation of the System shall be kept separate from other revenues
of the City, and the following special Funds heretofore created -
and established are hereby reaffirmed, to wit:
(a) City of Allen Waterworks and Sewer System Fund
(hereinafter called "System Fund") which Fund is and
shall continue to be maintained at the City's depository
bank.
(b) City of Allen Waterworks and Sewer System Revenue
Bond Interest and Sinking Fund, hereinafter called "Interest
and Sinking Fund". This Fund is and shall continue to be
maintained at the MERCANTILE NATIONAL BANK AT DALLAS, Dallas,
Texas, as Trustee of the pledged revenues, and moneys
deposited therein shall be used solely for the purpose bf
paying the principal of and interest on the bonds similarly
secured as the same become due.
(c) City of Allen Waterworks and Sewer System Revenue
Bond Reserve Fund, hereinafter called "'Reserve Fund".
This Fund is and shall continue to be maintained at the
MERCANTILE NATIONAL BANK AT DALLAS, Dallas, Texas, Trustee,
and moneys deposited therein shall be used only for the
purpose of paying principal of and interest on bonds simi-
larly secured when there is insufficient money available
for.such purpose in the Interest and Sinking Fund on an
interest and/or principal payment date.
I—]
SECTION 13: The City hereby reaffirms its prior covenant
and agrees that all revenues of every nature received from the
operation of the System shall be deposited from day to day as
collected into the System Fund, and the reasonable and proper
expenses of operating and maintaining the System, as set forth
in Section 9(b) hereof, shall be paid therefrom upon approval of
the City Council. All revenues of the System not actually required
to pay expenses and costs incurred as permitted by this Section
shall be deposited in the other Funds created for the payment and
security of the first lien bonds to the extent and in the manner
required by the ordinances authorizing the issuance of the
previously issued bonds and this ordinance.
SECTION 14: In addition to the amounts required to be
deposited in t e Interest and Sinking Fund from the net revenues
in the System Fund to pay the principal of and interest on the
previously issued bonds as the same becomes due, the City hereby
agrees to make monthly deposits to said Fund to pay the principal
of and interest on the bonds herein authorized as follows:
Beginning on or before August 15, 1979, and on or
before the 15th day of each following month to and
including May 15, 1980, an amount equal to not lees
than one-tenth (1/10) of the installment of interest
to become due on the bonds on June 1, 1980; on or before
June 15, 1980 and on or before the 15th day of each
following month to and including May 15, 1981, an amount
equal to not less than one-sixth (1/6) of the next semi-
annual installment of interest to become due on the
bonds; and, thereafter on or before June 15, 1981 and on
or before the 15th day of each following month, an amount
equal to not less than the sum of (i) one-sixth of the
next semiannual installment of interest and (ii) one -
twelfth (1/12) of the next annual principal payment to
become due on the bonds.
The monthly deposits to the Interest and Sinking Fund for
the payment of principal and interest on the bonds shall continue
to be made as hereinabove provided until such time as (i) the total
amount on deposit in the Interest and Sinking Fund is equal to the
amount required to pay all outstanding bonds similarly secured or
(ii) the bonds are no longer outstanding, i.e., fully paid as to
principal and interest or refunded.
Accrued interest and premium, if any, received from the
purchaser of the bonds, as well as any proceeds of the bonds not
required to complete the improvements and extensions to the
System, shall be deposited to the Interest and Sinking Fund,
and may be taken into consideration and reduce the amount of
the monthly deposits hereinabove provided which would otherwise
be required to be deposited in the Interest and Sinking Fund
from the net revenues of the System for the bonds.
SECTION 15: That the City hereby reaffirms its prior
covenant agrees that there shall be accumulated, and when
accumulated, continuously maintained in the Reserve Fund an
amount equal to not less than the average annual principal and
interest requirements for all outstanding bonds similarly secured
(calculated on a fiscal year basis as of the date of the bonds of
the last series of bonds similarly secured then outstanding). The
amount to be accumulated and maintained in the Reserve Fund by
virtue of the issuance of the bonds is hereby determined to be
$215,460.
In accordance with the ordinances authorizing the issuance of
the previously issued bonds, there is currently on deposit in the
Reserve Fund the sum of not less than $110,500. Beginning on or
before August 15, 1979, and on or before the 15th day of each
following month, there shall be deposited in the Reserve Fund
an amount equal to not less than $1,840 until the amount of
cash and investments in said Fund totals not less than $215,460.
When the total amount now required to be deposited in the Reserve
Fund has been fully accumulated, said monthly payments to said
Fund may be terminated; provided, however, should the amount on
deposit in said Fund be reduced below $215,460, after the same
has been accumulated, monthly deposits to the Reserve,Fun d in the
amount of $3,590 shall be resumed and continued to be made on or
before the 15th day of each month until the amount required to be
deposited therein has been fully restored.
Money in the Reserve Fund may be, at the option of the City,
invested or reinvested from time to time in direct obligations of
or obligations, the principal and interest of which are guaranteed
by the United States of America or invested in direct obligations
of or participation certificates guaranteed by the Federal Inter-
mediate Credit Banks, Federal Land Banks, Federal National
Mortgage Association, Federal Home Loan Banks, Banks for Coopera-
tives, and in certificates of deposit of any bank or trust company
the deposits of which are fully secured by a pledge of securities
of any of the kinds hereinabove specified, such obligations or
securities to mature in not more than ten years from the date of
such investment or not later than the final maturity of the then
outstanding bonds similarly secured, whichever period is shorter.
Any obligations in which money is so invested shall be kept in
escrow with the custodian of said Fund, and shall be promptly
sold and the proceeds of sale applied to the making of payments
required to be made from the Reserve Fund whenver such payments
are necessary to be made under Section 12(c). During the time
said Fund contains the full amount required to be on deposit,
any interest income or increment by reason of such investments
shall be transferred to the System Fund. The deposits required
to be made into this Fund shall be subordinate to those required
to be made into the Interest and Sinking Fund.
SECTION 16: If in any month the City shall, for any reason,
fail to pay into the Interest and Sinking -Fund and Reserve Fund
the full amounts above stipulated, amounts equivalent to such
deficiencies shall be set apart and paid into said special Funds
from the first available and unallocated net revenues of the
System in the following month or months and such payments shall be
in addition to the amounts hereinabove provided to be otherwise
paid into said Funds during such month or months.
SECTION 17: Any revenues in excess of those required
to fully estabTish and maintain the special Funds created for
the payment and security of the bonds similarly secured may be
used for the redemption of the bonds similarly secured, or may
be transferred to the general fund of the City and used for
general or special purposes.
SECTION 18: All moneys deposited in the special Funds
for which this—ordinance makes provision (except any portions
thereof as may be at any time properly invested) shall be secured
in the manner and to the fullest extent required by the laws of
Texas for the security of public funds, and moneys onchposit in
such Funds shall be used only for the purposes permitted'by this
ordinance.
SECTION 19: In addition to the right to issue bonds of
inferior lien as authorized by the laws of this State, the City
reserves the right to hereafter issue additional parity bonds
which shall be payable from and secured by a first lien on and
pledge of the net revenues of the System in the same manner and
to the same extent as the previously issued bonds.and the bonds,
and the previously -issued bonds, the bonds and additional bonds
shall in all respects be of equal dignity. The additional bonds
may be issued in one or more installments, provided, however,
that none shall be issued unless and until the following conditions
have been met:
(a) The City is ,ijot then in default as to any covenant,
condition or -obligation prescribed by 'an ordinance authorizing
the issuance of the then outstanding bonds similarly secured.
(b) That each of the Funds created for the payment
and security of the bonds similarly secured contains the
amount of money then required to -be on deposit therein.
(c) The net earnings of the System for (1) the
City's completed fiscal year next preceding the adoption
of the ordinance authorizing the issuance of the proposed
additional bonds or (2) the twelve (12) months next
preceding the adoption,)of-;such ordinance are equal to at
least one and one-fourth (1-1/4) times the average annual
principal and interest requirements of all the bonds to be
secured by a first lien on and pledge of the net revenues
of the System after giving effect to the issuance of the
proposed additional bonds, as such net earnings are shown
by a report of a Certified Public Accountant or Licensed
Public Accountant. The term "net earnings",as used in this
Section 19 shall_ mean the gross revenues after deducting the
expense of operation and maintenance, but not deducting
depreciation or expenditures which, under standard accounting
practice, should be charged to capital expenditures.
(d) The additional bonds are made to mature on
June 1 in each of the years in which they are scheduled
to mature.
(e) The ordinance authorizing the issuance of the
additional bonds provides for the accumulation in the
Interest and Sinking Fund of amounts sufficient to
pay the principal of and interest on such additional_
bonds as same mature:;
(f) The ordinance authorizing the issuance of -the
additional bonds provides that the amount to be accumulated
and maintained in the Reserve Fund shall be an -amount equal
to not less than the average annual requirement for the
payment of principal and interest on all bonds to be secured
by a first lien on and pledge of the net revenues of the
System after giving effect to the issuance of the proposed
additional bonds, and provides that any additional Reserve
Fund amount which may thus be required shall be accumulated
within not more than five years and one month from the date
of the passage of the ordinance authorizing the issuance of
the proposed additional bonds.
Bonds similarly secured may be refunded (pursuant to any
law then available) upon such terms and conditions as the governing
body of the City may deem to the best interest of the City and its
inhabitants, and, if less than all such outstanding revenue bonds
are refunded, the proposed refunding bonds shall be considered as
"additional bonds" under the provisions of this Section and the
report required in subdivision (c) shall give effect to the issuance
of the proposed refunding bonds (and shall not give effect to the
bonds being refunded following their cancellation or provision being
made for their payment).
SECTION 20: The City shall maintain the System in good
condition anoperate the same in an efficient manner and at
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 the bonds on the System of a kind and in an amount
which usually would be carried by municipal corporations of the
State of Texas engaged in a similar type of business. Nothing in
this Section 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 21: The City hereby covenants and agrees that so long
as any of the Tonds or any interest thereon remain outstanding and
unpaid, it will keep and maintain a proper and complete system of
records and accounts pertaining to the operation of the System
(separate and apart from all other records and accounts) in which
complete and torrent entries shall be made of all transactions
relating to said System, as provided in Article 1113, V.A.T.C.S.,
and that the holder or holders of any of such bonds or any duly
authorized agent or agents of such holders shall have the right
at all reasonable times to inspect all such records, accounts and
data relating thereto, and to inspect the System and all properties
comprising same. The City further agrees that as soon as possible
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 or Licensed Public Accountants. Each
such audit, in addition to whatever other matters may be thought
proper by the Accountant, shall particularly include the
following:
(a) A detailed statement of the income and expenditures
of the System for such fiscal year;
(b) A bAlance sheet as of the end of such fiscal
year;
(c) The Accountant's comments regarding the manner
in which the City has carried out the requirements of this
ordinance and his recommendations for any changes or improve-
ments in the operation, records and accounts of the System;
(d) A list of the insurance policies in force at the
end of the fiscal year on the System properties, setting
out as to each policy the amount thereof, the risk coveted,
the name of the insurer, and the policy's expiration date;
(e) A list of the securities which have been on
deposit as security for the money in the Interest and Sinking
Fund throughout the fiscal year, a list of the securities,
if any, in which the Reserve Fund has been invested, and a'
statement of the manner in which money in the System Fund
has been secured in such fiscal year;
(f) The number of properties connected with the System.
Expenses incurred in making the audits above referred to
are to be regarded as maintenance and operating expenses and paid
as such. Copies of the aforesaid annual audit shall be immediately
furnished to the Executive Director of the Municipal Advisory
Council of Texas at his office in Austin, Texas, to the original
purchaser of the bonds and, upon written request, to any sub-
sequent holder of the bonds. Any bondholder shall have the right
to discuss with the Accountant making the annual audit the contents
thereof and to ask for such additional information as he may
reasonably require.
SECTION 22: 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 payments to be made to the Interest and Sinking Fund or Reserve
Fund, or (b) defaults in the observance or performance of any
other of the covenants, conditions or obligations set forth in
this ordinance, the holder or holders of any of the bonds shall
be entitled to a writ of mandamus issued by a court of proper
jurisdiction compelling and requiring the City Council and other
officers of the City to observe and perform any covenant, condition
or obligation prescribed in the bond 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 23: The City hereby further covenants as follows:
(a) That it has the lawful power to pledge the revenues
supporting this issue of bonds and has lawfully exercised said
power under the Constitution and laws of the State of Texas,
including said power existing under Article 1111 et seq.,
V.A.T.C.S.; that the previously issued bonds and the bonds shall
be ratably secured under said pledge of income in such manner that
one bond shall have no preference over any other bond of said
issues.
(b) That other than for the payment of the previously issued
bonds and the bonds, 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) That, so- long as any of the bonds, or any interest
thereon, remain outstanding, the City will not sell, lease
or encumber the System or any substantial part thereof, provided
that this 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; also, with the exception of the additional bonds expressly
permitted by this ordinance to be issued, it will not encumber the
net revenues thereof unless such encumbrance is made junior and
subordinate to all of the provisions of this ordinance.
(d) That no free service of the System shall be allowed,
and should the City or any of its agencies or instrumentalities
make use of the services and facilities of the System, payment
of the reasonable value thereof shall be made by the City out
of funds from sources other than the revenues and income of.
the System.
(e) To the extent that it legally may, the City further
covenants and agrees that, so long as any of the bonds, or any
interest thereon are outstanding, no franchise shall be granted
for the installation or operation of any waterworks or sanitary
sewer systems other than those owned by the City, and the operation
of any such system by anyone other than the City is hereby
prohibited.
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SECTION 24: That the bonds are special obligations of -the
City payable -from the pledged revenues , ;,and the holders thereof
shall never have the right to demand payment thereof out of funds
raised or to be raised by taxation.
SECTION 25: 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 8 of the Uniform
Commerical Code.
SECTION 26: The Mayor of the City of Allen 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,registration by the Comptroller of Public
Accounts and delivery of the purchaser thereof.
SECTION 27: That the provisions of this ordinance shall
constitute a contract between the City of Allen and the holder
or holders from..time to time of the bonds herein authorized to
be issued, and after the issuance of any of said bonds, no change,
variation or alteration of any kind of the provisions of this
ordinance may be made, unless as herein otherwise provided, until
all of the bonds issued hereunder shall have been paid as to
both principal and interest.
SECTION 28: That the sale Of the bonds herein authorized
to SCHNEIDER, BERNET & HICKMAN, INC., Dallas, Texas, at the
price of par and accrued interest to the date of delivery is
hereby confirmed. Delivery of said bonds shall be made to said
purchaser as soon as may be after the adoption of this ordinance,
upon payment thereofr in accordance with the terms of sale.
SECTION 29: That the purchasers` obligation to accept
delivery o he bonds herein authorized is subject to their
being furnished a final opinion of Messrs. Dumas, Huguenin,
Boothman and Morrow, Attorneys, 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 said bonds with appropriate certificate pertaining
thereto executed by facsimile signature of the City Secretary
is hereby approved and authorized.
SECTION 30: That CUSIP numbers may be printed on the bonds
herein authorized. 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 City nor attorneys approving said bonds as to legality are to
be held responsible for CUSIP numbers incorrectly printed on the
bonds.
SECTION 31: That the City hereby covenants that the proceeds
from the sale—of said bonds will be used as soon as practicable
for the purposes for which said bonds are issued; that such pro-
ceeds will not be invested in any securities or obligations except
for the temporary period pending such use; and that such proceeds
will not be used directly or indirectly so as to cause all or any
part of said bonds to be or become "arbitrage bonds" within the
meaning of Section 103(c) of the Internal Revenue Code of 1.954,
as amended, or any regulations or rulings prescribed or made
pursuant thereto.
SECTION 32: That this ordinance shall take effect and be
lin full force immediately from and after its passage.
PASSED AND APPROVED, this the 2nd day of gust, 1979.
Mayor, City of Allen, Texas
ATTEST:
Cy Secretary, City o len, Texas
��
JI(City Seal)
Ordinance # 272
MINUTES PERTAINING TO ORDINANCE AUTHORIZING THE ISSUANCE
OF $1,300,000 "CITY OF ALLEN, TEXAS, WATERWORKS AND
SEWER SYSTEM REVENUE BONDS, SERIES 1979", DATED AUGUST 1. 1979
THE STATE OF TEXAS §
COUNTY OF COLLIN §
CITY OF ALLEN §
ON THIS, the 2nd day, of August, 1979, the City Council of the
City of Allen, Texas, convened in regular session at the regular
meeting place thereof in the City Hall, the meeting being open
to the public and notice of said meeting having been given as
prescribed by Article 6252-17, Section 3A, V.A.T.C.S., with the
following members being present and -in attendance, to wit:
MICKEY PIERSON MAYOR
CfffFARMER MAYOR PRO TEM
GLEN ANDREW )
CHARLES CHANDLER )
H. R. DAUGHERTY ) COUNCILMEN
REX WOMACK )
RICHARD L CHUMBLEY )
and with the following absent: ,
constituting a quorum; and amon their business considered at said
meeting, an ordinance was subm' ed to the City Council for passage
and adoption, such ordinance b ng entitled as follows:
"AN ORDINANCE by the City Council of the City of
Allen, Texas, authorizing the issuance of
$1,300,000 'CITY OF ALLEN, TEXAS, 14ATERWORKS
AND SEWER SYSTEM REVENUE BONDS, SERIES 1979`,
dated August 1, 1979, as authorized by the
General Laws of the State of Texas, particularly
Article 1111 et 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 combined Waterworks and Sanitary Sewer
System to the payment of the principal of and
interest on said bonds; enacting provisions
incident and related to the subject and purpose
of this ordinance; and providing an effective
date."
The ordinance was read in 11. Thereupon,
made a motion that the ordin n be ed and adopted-finally--
The
dopted ina 1y.The motion was seconded by and carried by
the following vote;
AYES: Mayor Pierson and Councilme Andrew,
Chandler, Daugherty, Womack an ;ChDumbley.
NOES: None.
The Presiding Officer then announced that the ordinance had
been finally passed and adopted.
MINUTES APPROVED, this the gust, 1979.
Mayor, Tity of Allen, Texas
ATTEST:
c:�y Secretary, City o
(,i ty Seal)
en, Texas
k.
T ORDINANCE NO- 272,
AN ORDINANCE by the
City Council of the City of
Allen, Texas, authorizing the
issuance of $1.300,000 "CITY
OF—ALLEN, TEXAS, WA
-1
AND SEWER
SYSTEM REVENUE
BONDS, SERIES 1979",
dated August 1, 1979, as
f authorized by the General
Laws of the State of Texas,
P
articularly Article Jill
t
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 combined Wat-
erworks and Sanitary Sewer
System to the payment of the
principal of and interest on
said bonds; enacting provi-
sions incident and related to
of
the subject and pub
r this ordinance; and providing
an effective date.
SECTION 32: That this
ordinance shall take effect
and Win full force immedi-
ately from and after its
passage.
i PASSED AND-APPROV-'
ED, this the 2nd day of
August, 1979.
-s-M.B. Pierson, Mayor
City of Allen, Texas
ATTEST:
-s-Juanelle Cooksey,
City Secretary, . 1
City of Allen, Texas I
[Published in The Allen Am-
erican August 9 and 13, 19791`1
AFFIDAVIT AND PROOF OF PUBLICATION
THE STATE OF TEXAS
COUNTY OF COLLIN
BEFORE ME, the undersigned authority, on this day personally appeared BUDDY W. CAMPER, who having been
by me duly sworn, on oath deposes and says:
That he is publisher of THE ALLEN AMERICAN, a newspaper published in Collin County, Texas, not less fre-
quently than once a week, having a general circulation in said county, and having been published regularly and con-
tinuously for more than twelve months prior to publishing
of which the attached is a true and written copy, and which was published in THE ALLEN AMERICAN on
and which was issued on L,
of Collin County, Texas. A
by�e�l�,�=�e�
copy o said publication is at4ched hereto.
SUBSCRIBED AND SWORN to before me this r
Publisher's Fee $
day of , A.D. 19_2_�'.
Notary Public in and for Collin County, Texas
Legal Notice
ORDINANCE NO. 272
AN ORDINANCE by the
City Council of the City of
Allen, Texas, authorizing the
issuance of $1,300,000 "CITY
OF ALLEN, TEXAS, WA-
TERWORKS AND SEWER,
SYSTEM REVENUE
BONDS, SERIES 1979:',
dated August 1, 1979, as
authorized by the General
Laws of the State of .Texas,
particularly Article III I et.
seq. V.A.T.C.S.; prescribing
the, form of the bonds and the a
form of the interest coupons; q
pledging the net -revenues of
the City's combined Wat-i
erworks and Sanitary Sewer
System to the payment of the
principal of and interest on
said bonds; enacting provi-
sions incident and related to
the subject -and purpose of'
1 this ordinance; and providing j
an effective date. , l)
SECTION 32: That this
ordinance shall take effect
and be in full force immedi-
ately from and after its
passage.
PASSED AND APPROV.
ED, this the 2nd day of
August, 1979.
-s-M.B. Pierson, Mayor
City of Allen, Texas
ATTEST:
-s-Juanelle Cooksey,
City Secretary,
City of Allen, Texas
[Published in The Allen Am-
erican August 9 and 13, 19791
� t
J THE STATE OF TEXAS
! COUNTY OF COLLIN
AFFIDAVIT AND PROOF OF PUBLICATION
BEFORE ME, the undersigned authority, on this day personally appeared BUDDY W. CAMPER, who having been
by me duly sworn, on oath deposes and says:
That he is publisher of THE ALLEN AMERICAN, a newspaper published in Collin County, Texas, not less fre-
quently than once a week, having a general circulation in said county, and having been published regularly and con-
tinuously for more than twelve months prior to publishing
of which the attached is a true and written copy, and *hick was published in THE ALLEN AMERICAN on
and which was issued on Z , by �� L
of Collin County, Texas. A prided copy of sai publication is ached hereto.
SUBSCRIBED AND SWORN to before me this
Publisher's Fee $
day of , A.D. 19 7 .
Q •
Notary Public in and for Collin County, Texas
ORDINANCE
An ordi ce 'prescribing
rules and regulations govern- -
ing plats, plans, and subdi- i
vision of land within the City
of Allen, Texas and its legally
defined extraterritorial juris-
i diction; containing certain
definitions; providing I pro-
cedures for the approval of
subdivision plats; prescribing
regulations for the design and,
construction of streets, side-
walks, alleys, water land sar
itary "sewage utilties, dram=
age, and community facili-
ties; ($200) for each violation
thereof; providing a validity
clause; repealing all conflict-
ing ordinances; and providing
an effective date: —
Duly passed and adopted by
the City Council of the City of
Allen, Texas'this the 16 day
of August. 1979: ,
i s-Juanelle Cooksey
('ity Secretary
t-
ORDINANCE
Ant 'prescribing
l rdles and regulations govern-1
mR plata, plans, and.subdi-
'vision of land within the City
L of Allen,"Texas and its legally
Aefined•extraterritorial juris-
diction; �cont.aining, certain
definitions;` `providing 1
pro-
cedures for the `ripproval' of
subdivision plats; prescribing'
regulations for the design and
construction of streets, side-
walks, alleyd, water and san-
itary sewage utilties, drain-
age, and community facili-
k ties; ($200) for each violation
thereof; providing a validity
clause; repealing all conflict=
ing ordinances; and providing
an effective date:
Duly passed and adopted by
the City Couneil of the City of
Allen, Texas this the '16 day
of. August, 1979.
-s•Juanelle Cooksey 4
City Secretary