O60-02KENNEDALE ORDINANCE NO. 60-2
THE STATE OF TEXAS:
00-GNTY OF TARRANT:
CITv OP KENNEDALE:
On this the ilth day of February, 1960, the City
Council of the City of Kennedale, Texas, convened in special
meeting, at the regular meeting place, with the following
members present, to -wit:
Gene Harper, Ahern n,
being present, with the following absent:
None constitating a quorum,
a which time the following proceedings were tad:
Alderman Harper introducd an
ofda1ce and made a motion that it bP paased. The notion
was seconded OT lderman Radakovich The
motion carrying with it the passage of the ordinance pre
vailed by the following: vote:
AYES: Aldermen Harper, Radakavich, Hammack, Eatlifr
and Eulin, and nayor Childres.
Norman T. Childres, Mayor,
Steve Radakavich, Alderman,
John E. Hammack, Alderman,
J.W. Ratliff, Alderman,
Alvin L. Bulin, Alderman,
Mrs.. Sue A. Langford, City Fecretary;
NO: None.
The ordinance as passed is as follows:
,.;
0DiNANCE NO. 60-2
PROVIDING FOR TEE ISSUANCE OF $210,000.00
OF WATER AND SEWER REVENUE BONDS, TO REFUND
$59,000.00 OF OUTSTANDING WATERWORKS SYSTEM
REVENUE BONDS; AND TO OBTAIN $140,000.00
OF FUNDS FOR THE PURPOSE OF CONSTRUCTING A
SEWER SYSI'ILM FOR SAID CITY; AND TO OBTAIN
$11,000.00 OF FUNDS FOR THE PURPOSE OF IM-
PROVING AND EXTENDING THE CITY'S WATERWORKS
SYSTEM; PLEDGING REVENUES FROM SAID SYSTEMS
TO PAY AND TO SECURE PAYMENT OF THE BONDS
HEREIN AUTHORIZED; PROVIDING FOR THE EXPENSE
OF OPERATING SAID SYSTEMS; MAKING CERTAIN
COVENANTS OF THE CITY IN REFERENCE TO THE
BONDS AND THE FUNDS FROM WHICH SAID PRINCIPAL
AND INTEREST ARE TO BE PAID; PROVIDING THAT
THE HOLDER OR HOLDERS OF SAID BONDS SHALL
NEVER HAVE THE RIGHT TO DEMAND PAYMENT OF
SAID OBLIGATIONS OUT OF FUNDS RAISED OR TO
BE RAISED BY TAXATION; AND ORDAINING OTHER
MATTERS RELATING TO THE SUBJECT.
WHEREAS, the City Council has heretofore determined
that it is to the best interest of the City and of its citi-
zens and inhabitants that it issue revenue bonds of said City
for the purpose of refunding outstanding revenue bonds; for
the purpose of constructing a Sewer System for said City;
and for the purpose of improving and extending the City's
Waterworks System; and
WHEREAS, pursuant to such determination, the City
Council of the City of Kennedale, Texas, adopted a resolution
on the 23rd day of February, 1960, calling an election on
the following propositions:
PROPOSITION NO. 1
"Shall the City Council of the City of
Kennedale, Texas, be authorized to issue
the bonds of said City in the amount of
$60,000.00, maturing serially in such
installments as may be fixed by the City
Council, the maximum maturity being not
more than Forty (40) years from their
date, bearin interest at a rate not to
exceed Six (o%) percent per annum, for
the purpose of refunding the presently
outstanding $60,000.00 City of Kennedale,
Texas, Waterworks System Revenue Bonds,
Series 1952, dated March 15, 1952, to be
issued in accordance with and secured in
the manner provided in Articles 1111-1118,
both inclusive, of the Revised Civil Statutes
of Texas, 1925, as amended, each such refunding
-2-
bond to be conditioned that the holder
thereof shall never have the right to
demand payment of said obligation.out of
fundraised or to be raised by taxation,
secured by a pledge of the net revenues
from the City's Waterworks and Sewer System."
PROPOSITION NO. 2
"Shall the City Council of the City of
Kennedale, Texas, be authorized to issue
the bonds of said City in the amount of
$140,000.00, maturing serially in such
installments as may be fixed by the City
Council, the maximum maturity being not
more than Forty (40) years from their
date, bearing interest at a rate not to
exceed six (6%) per cent per annum, for
the purpose of constructing a Sewer System
for said City, to be issued in accordance
with and secured in the manner provided
in Articles 1111-1118, both inclusive,
of the Revised Civil Statutes of Texas,
1925, as amended, each bond to be conditioned
that the holder thereof shall never have the
right to demand payment of said obligation
out of funds raised or to be raised by
taxation, secured by a pledge of the net
revenues from the City's Waterworks an
Sewer System."
PROPOSITION NO. 3
"Shall the City Council of the City of
Kennedale, Texas, be authorized to issue
the bonds of said City In the amount of
$40,000.00, maturing serially in such in-
stallments as may be fixed by the City
Council, the maximum maturity being not
more than Forty (40) years from -their
date, bearin§- interest at a rate not to
exceed six (0%) per cent per annum, for
the purpose of improving and extending
the City's Waterworks System, to be issued
in accordance with and secured in the
manner provided in Articles 1111-1118,
both inclusive, of the Revised Civil
Statutes of Texas, 1925, as amended,
each bond to be conditioned that the
holder thereof shall never have the
right to demand payment of said obli-
gation out of funds raised or to be
raised by taxation, secured by a pledge
of the net revenues fromthe City's
Waterworks and Sewer System."
WHEREAS, at the election held in said City on the
21st day of March, 1959, a majority of the resident, qualified
electors owning taxable property in said City, and who had
duly rendered the same for taxation voting at said election,
sustained the propositions to issue the bonds hereinafter
described by the following votes:
PROPOSITION NO.
1
"FOR THE ISSUANCE OF WATERWORKS
SYSTEM REVENUE REFUNDING BONDS
SECURED BY WATERWORKS AND SEWER
SYSTEM REVENUES"
"AGAINST THE ISSUANCE OF WATER-
WORKS SYSTEM REVENUE REFUNDING
BONDS SECURED BY WATERWORKS AND
SEWER SYSTEM REVENUES"
PROPOSITION NO. 2
"FOR THE ISSUANCE OF SEWER SYSTEM
REVENUE BONDS SECURED BY WATERWORKS
AND SEWER SYSTEM REVENUES
"AGAINST TI-E ISSUANCE OF SEWER SYSTEM
REVENUE. BONDS SECURED BY WATERWORKS
AND SEWER SYSTEM REVENUES"
PROPOSITION NO. 3
90 Votes;
23 Votes;
90 Votes;
23 Votes;
"FOR THE ISSUANCE OF WATERWORKS.
SYSTEM REVENUE BONDS SECURED BY
WATERWORKS AND SEWER SYSTEM REVENUES" 90 Votes;
23 Votes;
"AGAINST THE ISSUANCE OF WATERWORKS
SYSTEM REVENUE BONDS SECURED BY
WATERWORKS AND SEWER SYSTEM REVENUE "
WHEREAS, of the outstanding $60,000.Oo of City of
Kennedale, Texas, Waterworks System Revenue Bonds, Series
1952, dated March 15, 1952, $1 000.00 of said bonds will becorne
due on March 1, 1960; and
WHEREAS, it is necessary for the City to issue
refunding bonds for the purpose of refunding $59,000.00 of
the outstanding bonds of said issue; and
WHEREAS, the City Council should now proceed with
the issuance of such revenue bonds; now, therefore:
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE,
TEXAS:
1. AUTHORIZATION OF BONDS. For the purpose of
refunding $59,000.00 of City of Kennedale, Texas, Waterworks
System Revenue Bonds Series 1952, dated March 15, 1952;
. .
as follows:
BOND NUMBERS
1 and 2
3 and 4
5:to 7, both inclusive
8 to 10, " tl
11 to 14,i: r!
15 to 18," H
19 to 22, It IT
23 to 26," !I
T1
27 to 30,B.1
73 to 79,IT
SO to oo,
13
55 to 60,
87 to ,"
4-0 to 44,
50 to 54,"
61 to 66,"
67 to 72,P1
35 to
34,II_
"
39,"
n
45 to 49,
"
IT
II
TB
IT
IT
II
II
I!
TI
II
It
31 to ,
94 to 101,"
102 to 109,
It It
110 to 117,
TT ,B
118 t 0 126,
S7 ST
127 to 135, .
136 to 210,
for the purpose of providing 440,000.00 of funds for con-
structing a Sewer System for said City;and for the puripose
of providing $11,000.00 of funds for improving and extending
the City's Waterworks System, there shall be issued "City
of Kennedale Water and Sewer Revenue Bonds, Series 1960,"
aggregating Two Hundred Ten Thousand ($2100000.00) Dollars.
2. DATE; DENOMINATION; PLACE OF PANT. That said
bonds shall be dated March 1, 1960; shall be of the denomination
of Ohe Thousand ($1,000.00) Dollars each; shall be numbered
consecutively from One (1) to Two Hundred Ten (210), both
inclusive; and the principal thereof and interest thereon shall
be payable in lawful money of the United States of -America at
the Mercantile National Ba k at Dallas, Dallas, Texas, without
exchange or collection charges to the owner or holder thereof.
3. MATURITIES. Said bonds shall mature serially
MATURITY DATES AMOUNM
September 1, 1965 $ 2,000.00
September 1, 1966 2,000.00
September 1, 1967 3,000.00
September 1, 1968 3,000.00
September 1, 1969 4,000.00
September 1, 1970 14:000.00
September 1, 1971 /11000.00
September 1, 1972 4,000.00
September 1, 1973 4,000.00
Septeime2 1, 1974 4,000.00
September 1, 1975 5,000.00
September 1, 1976 5,000.00
September 1, 1977 5,000.00
September 1, 1978 5,000.00
September 1, 1979 6,000.00
September 1, 1980 6,000.00
Septenber 1, 1987 6,000.00
September 1, 1932 7,000.00
Septenfoer 1, 1983 7,000.00
September 1, 1984 7,000.00
September 1, 1985 8,000.00
SeptembeL, 1, 1986 8,000.00
September 1, 1987 8,000.00
September 1, 1988 9,000.00
September 1, 1989 9,000.00
September 1, 1990 75,000.00
In Bonds Numbers Nineteen (19) to Two Hundred. Ten
(210), both inclusive, the City reserves the option of calling
each such bonds for redemption prior to maturity on any interest
payment date on and after September 1, 1970, at par and accrued
interest to date so fixed for redemption, plus a premium of
52;0 of principal, such premium to be reduced on September 1,
1971, to 5t% with a further reduction of one-fourth of one
percent on September 1st of each year through Sepbemer 1st,
1986, and thereater at a premium of 1 of principal. Thirty
days' notice of such call shall be given in writing to the
place of payment and notice shall be published in a financial
publication published in ohe City of .Jew York, New Ybrk. Said
notice shall appear in said publicatio21 in at least one issue/
the date of said issue being not less than thirty days prior
to the date fixed for redemptionif any such bond is called
for redemption in said manner and if funds sufficient to pay
the redemption price shall have been duly placed in the bank
of payment by the date fixed for redemption, it shall not
thereafter bear interest. If fewer than all of the optional
bonds are called for redemptioa„ they shall be celled in
their inverse numerical order.
4. INTEREST RATS. Said Bonds shall bear interest
at the following rates:
Bonds NOS. 1 to 60, both inclusive, 5% per annum;
Bonds Nos. 61 to 135, both inclusive, 5% per annum;
Bonds Nos. 136 to 210, both inclusive, 5-3/4% per annum;,
evidenced by coupons payable March 1, 1961, and semi-annually
thereafter on September "stand March lst of eachyear.
5. EXECUTION OF BONDS AND COUPONS. Each of said
Bonds and coupons shall be executed by the imprinted facsimile,
signature of the r'ilayor and countersigned by the imprinted fac-
simile signature of the City Secretary and such facsimile
signatures shall have the same effect as manual signatures,
and the corporate seal of the City shall be impressed upon each
of the bonds.
6. FORN OF BOND. The form of said Bonds shall be
substantially as follows:
NO.
UNITED STATES OF AMERICA
STATE OF '2.EXAS
COUNTOF TARRANT
CITY- OF:KENN-.11DALE._
WATER AND SEWER REVENUE BOND
SERIES 1960
$1,000.00
The City of Kennedale, in the County of Tarrant, State
of Texas, a municipal corporation duly incorporate. under the
Laws of the State of Texas, for value received, hereby promises
to pay, solely from the revenues hereinafter specified, to
the bearer hereof on the 1st day of September, 19 , the
sum of
ONE THOUSAND DOLLARS
in lawful money of the United States of America, with interest
thereon from date hereof at the rate of
%) percent per annum, evidenced by coupons payable
March 1, 1961, and semi-annually thereafter onSepteMber3st
and March 1st of each year, both principal and interest payable
upon presentation and surrender of bond or proper coupon at
the Mercantile National Bank at Dallas, Dallas, Texas, without
exchange or collection charges to the owner or holder hereof.
This bond is one of a series of bonds of like tenor
and effect, except asto number, interest rate, maturity and
right of prior redemption, Numbered One (1) to Two Hundred Ten
(210), both inclusive, 0± the denomination of One Thousand
($1,000.00) Dollars each, aggregating Two Hundred Ten Thousand
(S210,000.00) Dollars, for the purpose of refunding $59,000,00
of City of Kennedale, Texas, Waterworks System. Revenue Bonds,
Series 1952, dated March 15, 1952; for the purpose of providing
$140,000.00 of funds for constructing a Sewer System for said
City; and for the purpose of providing $11,000.00 of funds for
improving and extending the Cibys Waterworks System; in
accordance with the Constitution and Laws L' the State of
Texas, including Articles 1111 to 1118, both inclusive,
Revised Civil Statutes, as amended, and pursuant to an ordinance
passed by the City Council, duly recorded in the Minutes of
said City Council.
*(Eonds Numbered Nineteen (19) to Two Hundred Ten
(210), both inclusive, of the issue of which this is one,
riay be redeemed prior to maturity at the option of the City
on September I: 1970, and on any interest payment date there-
after, at a price of par and accrued interest to date so fixed
for redemption, plus a premium of 5e°' of principal: such pre-
mium to be reduced on September 1, 1971, to 5 , with a further
reduction of one-fourth of one percent on September 1st of
each year through September 1, 1986, and thereafter at a
premium of li% of principal. Thirty days notice of such
call shall be given in writing to the place of payment and
notice shall be published in a financial publication in the
City of New York: New York. Said notice shall appear in said
publication in .t least one issue, the date of said issue
being not less than thirty days prior to the date fixed for
redemption. If any such bond is called for redemption in
said manner and if funds sufficient to pay the redemption
price sh.11 have been duly placed in the bankof payment by
the date fixed for redemption, it shall not thereafter bear
interest. If fewer than all of the optional bonds are called
for redemption they shall be called in their inverse numerical
order.)
ordinance above mentioned,
'e date of this bond, in conformity with the
is March 1, 1960.
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. Each successive holder of this bond and
each successive holder of each of the coupons hereto attached
is conclusively presumed to forego and renounce his equities
in favor of subsequent holders for value without notice and
agree that this bond and each of the coupons hereto attached
hereof, howsoever such possession nay have been acouired and
enforceable against aely ,orior holder and free fr.m all eoulties
of Kennedale and is officials the paying agent hereinabove
named stall not be affected by any notice to the contrary.
IT IS BEREBY CERTIFIED AND RECITED that the issuance
of this bond and the series of which it is a part is duly
authorized by law and by a majority of the resident, qualified
electors owning taxable property in said City and who have
duly rendered the same for taxation; voting at an election
held for that ourpose within said City; that all acts, conditions
and things required to exist precedent to and in the issuing
of this bond to render the same lawful and valid have been
properly done, nave happened and been perforDed in regular
and due time, form and Danner as required by the Constitution
and Laws of the State of Texas, and the ordinance hereinabove
mentioned, and 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 irrevocablypiedging to the payment thereof the net revenues
_9 _
may be negotiated by delivery by any person having possession
that any holder who shall have taken this bond or any of the
coupons from any person for value and without notice, thereby
has acquired absolute title thereto, free from any defenses
and claims of ownership of any such prior
holder. The City
of the Waterworks and Sewer System of the City of Kennedale,
Texas.
The City reserves the right, subject to the conditions
set forth In the ordinance authorizing this issue of bonds,
to issue additional parity revenue bonds heretofore and here-
after voted, which will be payable fofrom the net revenues from
said Waterworks and Sewer System and which will be on a parity
in all respects with this issue of bonds.
IN TRSTIMONY WEEREOF, the City Council of the City
of Kennedale„ Texas, has caused the seal of said City to be
impressed hereon and this bond and interest coupons hereto
attached to be executed by the imprinted facsimile signatures
of the Mayor and City Secretary
COUNTERSIGNED: rot), 03ty ot lienneaale, Texas
A /,(
Secretary, C y of Kqpnedale' Texas
*(This paragraph should be omitted from 3Onds Nos. 1 to 13,
both inclusive.)
7. FORM OF COUPON. The form of said coupons shall be
substantially as follows:
NO.
ON THE 1ST DAY OF
The City of Kennedale, Texas, out of revenues specified
in the bond to which this coupon is attached, will pay to bearer
*(unless the bond to which this coupon is attached shall have
„ 19
been called for previous redemption as therein provided and pro-
vision for the redemption thereof made), at the Mercantile
National Bank at Dallas, Dallas, Texas, without exchange or
collection charges to the owner or holder hereof, the sum of
-10-
Dollars: in lawful money of the United States of America, said
sum being interest de that day on "City of Kennedale Water
and Sewer Revenue Bond, Series 1960," bearing the number -herein-
after specified: dated March 1, 1960. The holder hereof shall
never have the right to demand payment of this obligation out
of funds raised or to be raised by taxation. Bond No.
City Secretary hayor
*(This parenthetical expression should be printed only in coupons
maturing March 1„ 1971, and subsequent)
8. COvIP1ROLLERTS CERTIFICATE. The form of Comptroller's
Certificate, which shall be printed on tne back of each bond
shall be substantially as follows:
OFFICE OF COMFTROLLF.R:
STATE OF 1hXAS:
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 Ls of the
State of Texas, and that it is a valid binding special obligation
of the City of Kennedale, 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.
WITN7SS MY HAND and Seal of office at Austin, Texas.
Comptroller of Public Accounts of the
State of Texas.
9. DEFINITIONS-. (a) The term °System" as used In
this ordinance, shall mean the City's complete Waterworks
and Sewer System, including all present and future extensions,
enlargements, additions, replacements and improvements thereto.
-11-
(b) The term "Net Revenues", as used in this ordinance,
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 ,-;udoment of the City Council, reasonably and fairly
exercised, as are necessary to keep the System in operation
and render adequate service to the City and the inhabitants
thereof, or such as misht oe necessary to meet some physical
accident or condition which would otherwise impair the Bonds
authorized by this ordinance and the additional bonds permitted
to oe issued under Section 19 hereof; shall be deducted in
determining "Net Revenues".
(c) The term "Bonds" shall mean the 2iO,OOOOO 0'
bonds authorized oy this ordinance.
(d) The term Additional Bonds" means the addlti
ne
bond.swhichthe City reserves the right to issue under Section
19 hereof.
lo, ?Lt7riaz. i-11 of the Het Revenues of the System,
with the exception of those in excess of the amounts 1-.equi-ried
to establish and maintain the funds as hereinafter provided,
are hereby irrevocably pledged for the payment of the zonos,
and of the Additional Bonds if Issued under the conditions and
in the manner specified in this ordinance; and the interest
thereon, ancl it is hereby ordained that the Bonds, and the
Additional Bonds, if soissued, and the interest thereon shall
constitute a first lien upon said Net Revenues.
11. RATES. The City covenants and agrees with the
holders of the Bonds and the Additional Bonds, If and when
issued:
(a) That it will at all times charge and collect for
services rendered oy the System rates sufficient to pay all
operating, maintenance, depreciation, replacements and better-
-12-
merit expense, and other costs deductible in determining "Net
Revenues" as- herein defined and to produce each month net
revenues in an amount not less than one and one-half times the
amounts reauired to pay the principal of and interest on the
Bonds as they become due.
(b) If the Additional Bonds are issued, or, if the
System should become legally liable for any other indebtedness,
the City shall fix and maintain additional rates and collect
charges for the services of the System sufficient to establish
and maintain funds for the payment thereof.
FUNDS G All revenues derived from the operation
of the System shall be kept separate from other funds of the
City. To that end, the following special funds are hereby
created:
(a) City of Henn dale Water and Sewer Revenue Fund,
hereinafter called "Revenue Fund", which shall be kept in
the City's depoatary bank.
(b) City of Kennedale Water and Sewer Revenue Bond
Interest and Sinking Fund, hereinafter called "Interest and
Sinking Fund", which shall be kept in the Mercantile National
Bank at Dallas, Dallas, Texas, as Trustee of the pledged
revenues.
(c) City of Kennedale Water and Sewer Revenue Bond
Reserve Fund, hereinafter called Reserve Fund": which shall
be kept in the Mercantile National Bank at Dallas, Dallas,
Texas, as Trustee of the pledged revenues.
AfeU
JED. All revenues of every nature
received from the sale of water or through the operation of
the System shall be deposited from day to day as collected,
into the Revenue Fund, and the reasonable and proper expenses
,of operating and maintaining the System, including salaries,
materials, shall be paid therefrom on approval of
the City Council. Revenues of the System not actually
to pay expenses and costs incurred as permitted by thi
shall deposited in the
other Funds created by this
each of which shall have priority thereto in the order
they are treated in the following sections here
14. INTEREST AND SINKING FUND. On March 15, 1960
and on the 15th day of each month thereafter to and in -
the
eluding February 15, 1961, the City shall deposit into
n
nterest and Sinking Fund an amount of money not less t
after
one -twelfth (1/12th) of the next maturing interest. On
March 153 1961, and on the 15th day of each month there
and
including
August 15, 1964, the Clty shall deposit
the Interest and Sinking Fund an amou
one -sixth
13
of money
(1/6th) of the ext maturing interest.
required
Section
ordinance:
in which
less than
On September
maturing
into
15, 19643 and on the 15th day of each month thereafter, the
City shell deposit into the Interest and Sinking Fund an
not
amount of money not lese than one -sixth (1/6th) of the next
maturing interest and one -twelfth (1/12th) of the next
principal. The amount received from the purchasers of the
bonds as interest accrued thereon to the date of delivery
shall be placed in the interest and Sinking Fund, which shall
reduce by such amount the sums which would otherwise be
required to be placed into the Interest and Sinking Fund
from the revenues of the System.
15. BRSERVE FUND. On March 15, 1960, and on the
15th day of each month thereafter there shall be deposl.ted
into the Reserve Fund the amount of $240.00. No payments
need be made into the Reserve Fund after there shall have
been accumulated in said Fund $14,400.00, except that when -
eve said Reserve Fund is reduced below that amount, payments
into the Fund shall be resumed and continued until such time
as the Fund has been restored to such sum. The Reserve Fund
shall be used to pay principal of or interest on the Bonds
falling due at anytime when here is not sufficient money
available in the Interest and Sinking Fund. Honey in the
Reserve Fund may, upon authorization by the City Council: be
invested in direct obligations of the United States of America
having maturities not in excess of five rears from the date
of the making of such investment. Any obligations in which
money is so irivese6 shali be kept in the Trustee Bank of the
City, and shell be promptly sold and the proceeds of sale
applied to the making of Payments required to be made from t,he
Reserve Fund, whenever sach payments are necessary to be made
under this section. Tie depositS_ into this Find shall be
subordinate to those required to be made into the Interest and
Sinking Fund. Whenever Additional Bons are issued, the amounc
to oe accumulated and maintained in the Reserve Fund snail be
increased by an amount not lass than one average years r quire
ments for the payment o2 prncpai of and inter -t on the
Additional Bons, and the monthly deposit - into the Reserve
Fund shall be increased by a amount sufficient to accumulate
the added reserve in a period of five years.
lo. DEFICIENCES ILI FUNDS. If in any month the City
shall fail to pay into the Interest and Sinking Fund and
Reserve Fund the full amounts above stipulated, amouunts equiva-
lent to such deficiencies shall be set aparo arand paid into said
funds from the first available and unallocated revenues of 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. '10 the extent necessary:
the City shall increase the rates and charges for services of
one System to make ule such deficiency.
17. EXCESS REVENUES. Any revel:. in excess of bhose
required to establish and maintain the Funds as above required
may be used for the redemption of Bonds or Additional Bonds,
or for further extensions and improvements to the System.
18. SECURITY FOR BONDS. All funds created by this
ordinance shall be secured in the nanner and to the fullest
extent permitted by law for the security of public funds, and
such funds shall be used only for the purposes permitted in
this ordinance.
19, ADDITIONAL BONDS. (a) The Cityreserves the
right hereafter to issue Additional Bonds payable from revenues
of the System. As above provided, the $210,000.00 of Bonds
directed by this ordinance to be issued shall be called "Bonds",
and the :.dditional Ponds hereafter voted, shall be caIbd
"Additional Bonds". The term TNet Earnings', as used in this
section, shall mean the gross revenues after deducting disburse-
ments for operation and maintenance, but not deducting ex/Dendi-
tures which, under standard accounting practice, should be
charged to capital expenditures. The Additional Bonds, when
issued, shall be secured by and payable from a first lien on
the pledge of the net revenues of the System, in the same
manner and to the same extent as are the bonds authorized by
this ordinance, and the Bonds and Additional Bonds shall in all
respects be of equal dignity. The Additional Bonds may be
ssued in one or more installments. The provisions of this
ordinance relating to Additional Bonds relate only to Additional
Bonds permitted •y this Section, and do not relate to junior
lien bonds.
(b) It is provided, however, that none of the
Additional Bonds shall be issued unless'i
(1) The Interest and Sinking Fund and the Reserve
Fund each contains the amount of money then required to be
on deposit therein;
(2) The net earnings for the twelve month period
ending not more than sixty days prior to the passage of the
ordinance authorizing the issuance of the Additional Bonds
were equal to at least one and one-half (1i) times the average
annual requirement for the payment of principal of and interett
on the then outstanding Bonds and on the Additional Bonds as
such net earnings are shown by a report of a certified Public
Accountant or a licensed Public Accountant.
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(3) A competent independent engineer certifies in
writing his opinion as to the annual expenses and income and
net earningsof the System throughout the life of the Bonds
and the Additional Bonds, and such opinion is that the average
annua net earnings from the system will he at least one and
one-hal_ ' 4) times the average annual requirements for the
payment of principal of and interest on the outstanding Bonds
and the Additional Bonds,
(L) The Additional Bonds are made to mature September 1st
(5) The City is not in default in any of the covenants
20. EAINTENANCE AND OPERATION; INSURANCE. iThe
So long as any of the bonds or_Additional Bonds are outstanding,
Dailies engaged in a similar type of business. Nothing in
in an amount which usually would be carried by private com-
this ordinance shall be construed as requiring the City to
expend any funds which are derived from sources other than the
operation of the System, but nothing herein shall be construed
as preventing the City from doing so.
accountant.
of each of the years in which they are scheduled to mature.
contained in this ordinance.
City shall maintain the System in good condition and operate
the same in an efficient manner and at a reasonable cost.
the City agrees to maintain insurance for the benefit of the
holder of holders of. the Bonds, on the .ystem
of a: kind and
21. ACCOUNTS. The City shall keep proper hooks of
record and accounts (separate from all other records and
accounts of the City) in which complete and correct enties
shall be made of all transactions relating to the System
and shall have said books audited once each year by an
independent certified public account or a licensed public
22, ACCOUNTING REPORTS. Within ninety days after
the close of each fiscal year hereafter, the City will furnish
o 1.773ank3, ci,lahon and Company, Inc., without cost) a signed
or certified copr of a report by an independent certified
public accountant, or a licensed public accountant, covering
one next preceding fiscal year showing the foflong information:
(a) Income and Expense Statement;
(b) Balance Sheet, aa of the end of the fiscal year;
(c) Accountant,s coLlment regardin2: the manner in -
which the City has complied with the require-
ments of this ordinance and his recommendation,
if any, for any changes o: improverienPs in the
operation of the System;
List of insurance policies in force at the
end or. the year, showing: as to each policy,
the risk covered, the .41(rie of the insured:
and the expiration date;
Cf) The number of unmetered customers of the
-iTaterworks System at the end of the year;
The approximate nuiTIer of gallons of water
flowing into the -Taterworks System of the
City and the num'oer of gallons sold during
the ye.l.
23. SPECIAL CCVENA1TTS. The City further covenants
as follows:
(a) That it has the lawful power to pledge the
revenues supporting (AaLs issue of Bonds and has -lawfully
exercised said power under the Constitution and Laws of the
State of Texas, including said power existing under Articles
1111-1118, both inclusive, Revised Civil Statutes of the
State of Texas, with amendments thereto; and that the Bonds
issued hereunder, and the Additional Bonds when and if issued,
shall be ratably secured by said pledge of income, in such
manner that one tiw.nd shall have no preference over any other
_Bond.
than for the payment of the Bonds herein authorized, the
rents, revenues and income of the System have not in any
manner been pledged to the payment of any debt or obligation
( )
The number of propertieS connected with the
Waterworks and Sewer System and the total
Income from each aaIdSystem for the year;.
(b) The City covenants and represents that other
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of the City or of the System.
(c) That, so long as any of said Bonds remain out-
standing, the City will not sell or encumber" the System or
any substantial part thereof, and that, with the excention of
the Additional Bonds expressly permited by this ordinance to
be issued, it will not encumber the revenues thereof unless
such encumbrance is made cTunior and subordinance co all of the
rovisions of this ordinance.
(d) That no free service of the _System shall be
allowed and shou the City or any of its agencies o- instru-
mentalities 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 fur-
ther covenants and agrees that, so long as any of the Bonds
or Additional Bonds or any interest thereon are outstanding,
no franchise shall be -ranted for the installation or operation
of any competing Waterworks or Sewer System, that the City
will prohibit the operation of any such System other than
those owned by the City, and the operation of any such System
by anyone other than the City is hereby prohibited.
24. INSPECTION. Any holder or holders of Bonds or
or Additional Bonds have the right at all reasonable times
to inspect the System and all records, accounts and data of
the City relating thereto.
25. REIJEDTw,S. In addition to all the rights and
remedies provided by law, the C1y further covenants and
agrees that in the event of default in the payment of principal
or interest on any of the Bonds when due, or,if it fails to
make the payments required to be made into the funds created
by this ordinance, or defaults in the observance or ',performance
of any other of the covenants, conditions or obligations set
forth i this ordinance, the holder or holders of any of the
Bonds shall be entitled to a writ of mandamus or other appro-
priate order issued by a court of proper jurisdiction compelling
and requiring the City and the officials thereof to observe and
perform any covenants, obligation or condition described in
this ordinance. No delay or omission to exercise any right
such r-7,
such default or aouiescence therein, and every such right and
be deemed expedient. The specific remedies herein provided shall
or power accruing upon any of the defaultsshall
impair any
ht or power or shall be construed 'to be a waiver of any
power may he exercised from time to time and as often as may
be cumulative sf all other existing remedies and the specifi-
special obligations of the City payable from the pledged
revenues and the holder thereof shall never have the right
to demand payment thereof out of the funds raised or to be
27., BY ATTORhEY GENERAL. This issue of bonds
and the record relating thereto shall be submitted to the
Attorney General of Texas, for his approval, and after he
shall have approved the saile, they shall be deposited with
the Comptroller of Public Accounts of the State of Texas.
28. EXCFANGE FOR BONDS 70 BE REFUNDED. After a pr val
of the Bonds by the Attorney General, the Comptroller shall
register Bonds Kos. One (1) to Fifty Nine (59), both inclusive,
upon surrender and cancellation of the following described
cation of such remedies shall not be deemed to be* exclusive.
26. BONDS ARE SPECIAL OBLIGATIONS. The bonds are
raised by taxation.
outstanding Bonds:
City of Kennedale, Texas, Waterworks System
Revenue Bonds, Series 1952, dated MarCh 15,
1952, bearing 5% interest, aggregatin2
$59,000.00.
Upon such registration, the Comptroller shall deliver
the Bonds to the order of the holder who surrendered the out-
standing Bonds for cancellation.
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J. SALE OF BONDS That $15c00.00 of Bonds
authorized by this ordinance, being Bonds NumberS Sixty
(60) to To Hundred Ten (210), both inclusive, CiC hereby
awarded to, and shall be sold and delivered to Frank B.
McMahon and Company, Inc., Dallas, Texas, for the price of
par and accrued interest to date of delivery.
30. All -ordinances andaiesolutions, and parts thereof,
conflict herewith are hereby expressly repealed insofar as
they conflict 110.71-,,L,,
1960.
PASSED AHD APPROVED this the ilth day of February,
APPROVED:
44'
00100 0, -t..00-00.0,0
Ci r ol Kerinedale, Texas
City Secretary, City or Len ale; --Texas
rilFR 22.-,.; OF '1"Erlr'S
COUNTY OF TAFT:
CT7Y 07 HENEDLE:
the undersigned, City Secretary of he City of
Kenieda1e Iexas, do hereby cer.fy that the above and
foregoing is a true and correct copy of an ordinance passed
by the City Council (and of the minutes pertaining thereto)
on the lith day of 7ebruary, 1960, authorizing the issuance
of $210,000.00 of City of Hennedale Water and Sewer Revenue
Bonds, Series 1960, which ordinance is duly of record -7n the
Minutes of sad City Co'
k-CUT7n UNDER D-17 HAND and seal of said City this
the llth day of February, 1960.
fi
•
City Secreiarr, cil
Texas.
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