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HomeMy WebLinkAbout13588 ORD - 01/26/1977i . I I ,THE STATE OF TEXAS iCOUNTY OF NUECES ;CITY OF CORPUS CHRISTI it On this the day o , 1977, the City IlCouncil of the City of Corpus Christi, Texas, convened in (Regular Meeting, with the following members of said Council ,Illpresent, to -wit: Jason M. Luby, Mayor 11 Eduardo de Ases Mrs. Ruth Gill Bob Gulley Commissioners • I Edward L. Sample Dr. Bill Tipton Bill G. Read, City Secretary with the following absent: /�/w�p✓/+.. constituting a quorum, at which time the following among other �l[business was transacted: presented for the consideration of i the Council an ordinance. The ordinance was read by the City 1 Secretary. The Mayor presented to the Council a communication ,in writing pertaining to said proposed ordinance, as follows: "Corpus Christi, Texas !I "TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas "For the reasons set forth in the emergency clause of l the foregoing ordinance, a public emergency and imperative necessity exist for the suspension of the Charter rule or re- quirement that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City Council,, I, therefore, request that you suspend said Charter rule or requirement and pass this ordinance finally on the date it is 'introduced, or at the present meeting of the City Council. V Respectfully, pp /s/ Jason M. Luby Mayor ,.3588 The City of Corpus Christi, Texas" V Commissioner moved that the Charter i• i ,provision prohibiting ordinances from being passed finally on ;,the date introduced be suspended for the reasons stated in the :written request of the Mayor and stated in the emergency clause if Iof the ordinance. The motion was seconded by Commissioner The motion was carried by a unanimous vote by the (City Council, viz: i AYES: All present voted Aye. NAYS: None. The Mayor requested that the records show that he ,voted Aye. This was done. I Commissioner moved that the ordinance be ff 'passed finally. The motion was seconded by Commissioner�,cGQ� :The motion was carried by the following vote: AYES: All present voted Aye. NAYS: None. The Mayor requested that the records show that he voted Aye. This was done. The Mayor announced that the ordinance had been passed. ,;The ordinance is as follows: ORDINANCE NO. 9.3588 I AUTHORIZING THE ISSUANCE OF CITY OF CORPUS CHRISTI, TEXAS, JUNIOR LIEN WATERWORKS SYSTEM REVENUE BONDS, SERIES 1977, IN THE AMOUNT OF $7,105,000 TO IMPROVE AND EXTEND THE WATER- WORKS SYSTEM OF THE CITY, PLEDGING CERTAIN REVENUES OF SAID SYSTEM AND ORDAINING OTHER MATTERS RELATING TO THE SUBJECT AND DECLARING A14 EMERGENCY. WHEREAS, the City of Corpus Christi has heretofore authorized the issuance and sold its City of Corpus Christi, :Texas, Junior Lien Waterworks Revenue Bonds, Series 1975, in is tithe principal amount of $7,895,000 (hereinafter called the "Series 1975 Bonds ") for the purpose of providing the funds to Irefund its First Mortgage Waterworks System Revenue Bonds, all I 2 i in accordance with an ordinance passed by the City Council of (said City on October 22, 1975 (herein defined as the "1975 (Ordinance "); and WHEREAS, pursuant to applicable laws, including (Articles 1111 to 1118, both inclusive, of V.A.C.S., the City lis authorized to issue additional bonds on a parity with the ,Series 1975 Bonds; and WHEREAS, the 1975 Ordinance permitted the issuance of the bonds herein authorized as additional parity bonds with Ithe Series 1975 Bonds; and WHEREAS, it is deemed appropriate that the City issue { 'bonds on a parity with the Series 1975 Bonds at this time, i BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF iCORPUS CHRISTI, TEXAS: Section 1. That said City's bonds to be designated !City of Corpus Christi, Texas, Junior Lien Waterworks Revenue (Bonds, Series 1977 (herein defined as the "Bonds ") are hereby authorized to be issued in the principal amount of $7,105,000 I for the purpose of providing moneys to improve and extend its lwaterworks system. Section 2. That said Bonds shall be issued initially as a single registered bond, without coupons, in the denomina- tion of $7,105,000, shall be dated January 10, 1977, shall be jnumbered R -1, and shall be payable in installments on July 10 in the amounts, respectively, as set forth in the following schedule: YEAR AMOUNT 1978 $300,000 1979 340,000 1980 385,000 1981 420,000 1982 455,000 1983 490,000 1984 535,000 3 YEAR AMOUNT 1985 $580,000 1986 620,000 1987 670,000 1988 720,000 1989 770,000 1990 820,000 Section 4. That the single registered Bond shall bear I interest from date at the rate of 4.322 per annum which shall bd payable in lawful money of the United States of America at the I I Office of the State Treasurer of the State of Texas, Austin, I Texas, on July 10, 1977, and thereafter on each January 10 and July 10. Section 5. That the single registered Bond shall be executed, signed and sealed, and have the characteristics as i I� follows, and said Bond and the Comptroller's Certificate to be thereon and the Payment Record to be attached thereto, shall be substantially in the forms, respectively, as follows: FORM OF SINGLE REGISTERED BOND NO. R -1 $7,105,000 UNITED STATES OF AMERICA STATE OF TEXAS CITY OF CORPUS CHRISTI, TEXAS JUNIOR LIEN WATERWORKS REVENUE BOND SERIES 1977 THE CITY OF CORPUS CHRISTI, TEXAS, (the "City") �I hereby promises to pay to the order of the TEXAS WATER DEVELOPMENT BOARD the aggregate principal amount of $7,105,000, in installments on the 10th day of July, in the years as followso 1 YEAR AMOUNT 1978 $300,000 1979 340,000 1980 1981 1982 1983 1984 P 1985 1986 1987 1988 1989 1990 385,000 420,000 455,000 490,000 535,000 580,000 620,000 670,000 720,000 770,000 820,000 and to pay interest on the principal amount or the balance of said principal amount from time to time remaining unpaid at the rate of 4.322 per annum, with said interest being payable I li 4 I a ,July 10, 1977, and semiannually thereafter on January 10 and July 10 of each year until all of the principal amount hereof has been paid. THE PRINCIPAL of and interest on this Bond are payable in lawful money of the United States of America at the Office of lthe State Treasurer of the State of Texas, Austin, Texas, which shall constitute and be defined as the "Custodian" of the Bond, and which is by law the custodian of all bonds owned by the (Texas Water Development Board. Payments of said principal and Ilinterest shall be made by check or draft drawn by the City, (payable to the order of the Texas Water Development Board, and lmailed or delivered to the Custodian. All of such payments, '(shall be noted by the Custodian on the Payment Record made a part of this Bond, and written notice of the making of such notations shall be mailed promptly to the City by the Custodian. !Such payment shall fully discharge the obligation of the City hereon to the extent of the payments so made. Upon final pay - ment of said principal and interest the Custodian shall submit !(,this Bond to the City for cancellation. THIS BOND has been issued pursuant to an Ordinance (duly adopted by the City of Corpus Christi, Texas, (the "Ordinance "), in the principal amount of $7,105,000, for the ;purpose of providing moneys to improve and extend the waterworks !system of the City. THE DATE OF THIS BOND, in conformity with the Ordinance ,above mentioned, is January 10, 1977. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly authorized, issued, and delivered; that all acts, conditions, and things required or 1proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been iiperformed, existed, and been done in accordance with law; that li I{ I i ' I '.this Bond is a special obligation of the City and that the l !principal of and interest on this Bond, together with City of 'Corpus Christi, Texas, Junior Lien Waterworks System Revenue Bonds, Series 1975, originally issued in the aggregate principal I j amount of $7,895,000, are payable from, and secured by a lien I on and pledge of, the Net Revenues of said City's Waterworks ;'System, subject to the lien and pledge securing the City's i First Lien Waterworks System Revenue Bonds and certain payments in accordance with contracts wherein the City is acquiring an (interest or interests in a water supply. THE OWNER HEREOF shall never have the right to demand ,payment of this obligation out of any funds raised or to be i� raised by taxation, nor from any other funds except the afore - Ilisaid Net Revenues. THE ORDINANCE PROVIDES that, to the extent and in the manner permitted by the terms of the Ordinance, the Ordinance (may be amended with the consent of the holder of this Bond. AS PROVIDED in the Ordinance, this Bond is exchange - ilable at the sole expense of the City at any time, upon ninety days' written notice to the City, at the request of the Texas Water Development Board and upon surrender of this Bond at the office of the Comptroller of Public Accounts of the State of Texas, at Austin, Texas, for negotiable coupon bonds, payable to bearer, numbered consecutively from 1 upward, in the deno- mination of Five Thousand Dollars ($5,000) each, bearing interest D list the rate of 4.32% per annum, in an aggregate principal amount equal to the then unpaid principal amount of this Bond, maturing I serially and annually in the same amounts as the unpaid principal 6 installments of this Bond, and in the form of such coupon bond !and in the manner provided for in the Ordinance. IN WITNESS WHEREOF, this Bond has been signed by the Mayor of said City and countersigned by the City Secretary of said City, and the official seal of said City has been duly impressed, or placed in facsimile, on this Bond. XXXXXXXXXXX XXXXXXXXXXX City Secretary Mayor ,City of Corpus Christi,:Texas City of Corpus Christi, Texas (SEAL) i FORM OF REGISTRATION CERTIFICATE i COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this Bond has been registered byl ,the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this XXXXXXXXXXX Comptroller of Public Accounts of the State of Texas PAYMENT RECORD Due Date July 10, 1977 January 10, 1978 July 10, 1978 January 10, 1979 July 10, 1979 i January 10, 1980 July 10, 1980 II January 10, 1981 July 10, 1981 i it Interest Payment Principal (4.32 %) Payment 7 Authorized Offi- cer, Title and Date Signature of Paid Custodian January 10, 1982 July 10, 1982 °January 10, 1983 July 10, 1983 January 10, 1984 July 10, 1984 January 10, 1985 July 10, 1985 January 10, 1986 July 10, 1986 January 10, 1987 July 10, 1987 January 10, 1988 July 10, 1988 January 10, 1989 July 10, 1989 January 10, 1990 July 10, 1990 (Make a line for each due date - -leave one half inch space between each due date, etc., for manual interlining, if necessary, also half a page at end for any explanation, which might be required.) SCHEDULE "A" TO PAYMENT RECORD (Note to Printer: This should be a separate sheet.) Principal installment on which payments have been made, prior to maturity. Authorized Official, Principal Due Date Title and Signatu3te Date Amount Payment Balance Paid of Custodian i Section 6. (a) That the City specifically covenants and agrees that within ninety (90) days after the receipt by thej City of the written request of the Texas Water Development Board, the City shall have printed, executed and exchanged for such 8 ,single registered bond, negotiable coupon bonds, of type com- I iposition printed on paper of customary weight and strength, pay - Table to bearer, numbered consecutively from 1 upward, in the ldenomination of $5,000 each, in an aggregate principal amount ' !equal to the then unpaid principal amount of such single regis- f e I i Itered bond, and having serial and annual maturities on the dates land in the amounts corresponding with the then unpaid principal jinstallments of such single registered bond, bearing interest at I the same rate and payable at the same times as such single registered bond, with bearer interest coupons annexed to such Icoupon bonds payable semiannually from and after the date to (which interest on such single registered.bond shall have been j paid. All expenses of printing, executing, and exchanging such !single registered bond shall be paid by the City from any of its (funds on hand lawfully available for such purpose, provided, how- 'lever, that if no other funds are on hand lawfully available Itherefor, then such expenses shall be paid from the Revenue Fund as an item of operation and maintenance expense of the System. I (b) It is further covenanted and agreed that no additional ordinances or orders need to be adopted by the City Council so as to accomplish the foregoing conversion and ex- change of the single registered bond for coupon bonds, and the City, upon request of the Texas Water Development Board as pro- vided herein, shall have the appropriate coupon bonds and coupons printed, executed, issued and exchanged for the single registered bond in the manner prescribed herein. The coupon bonds to be exchanged for the single registered bond shall be submitted by the Mayor of the City, or some officer acting under his authority, to the Comptroller of Public Accounts of the State of Texas, as Registrar, to be used in the aforementioned exchange. The seal of said Comptroller shall be affixed on each such coupon bond. Upon receipt of the single registered bond 9 I !for exchange, the Registrar shall cancel the single registered bond and deliver the coupon bonds to be exchanged therefor to the Texas Water Development Board. The Registrar shall note the exchange on his records kept for such purpose and shall 'execute the certificates or such coupon bonds, noting such !exchange, such certificates being in the form hereinafter !'provided. Section 7. That any coupon bonds which may in the ifuture be printed, executed and exchanged as herein provided for ''the single registered bond shall be payable, be dated, be lexecuted and signed, (and said bonds sha•11 be sealed), bear „interest, and have the characteristics as hereinbefore prescribed land as follows, and said coupon bonds, the coupons to be !attached thereto, and the Comptroller's Certificate to be !!printed thereon, shall be substantially in the form, respective- ly, as follows: FORM OF COUPON BOND NO. $5,000 UNITED STATES OF AMERICA STATE OF TEXAS CITY OF CORPUS CHRISTI, TEXAS JUNIOR LIEN WATERWORKS REVENUE BOND SERIES 1977 ON JULY 10, , THE CITY OF CORPUS CHRISTI, TEXAS, hereby promises to pay to bearer hereof the principal amount of FIVE THOUSAND DOLLARS :land to pay interest.thereon, from , at the rate lof % per annum, evidenced by interest coupons payable !I !semiannually on each July 10 and January 10 of each year while !I (this Bond is outstanding. THE PRINCIPAL of this Bond and the interest coupons appertaining hereto shall be payable to bearer, in lawful money 'I ilof the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this I Bond or proper interest coupon, at the following, which shall 10 �I I� constitute and be defined as the "Paying Agents" for this Series i of Bonds: Mercantile National Bank at Dallas, Dallas, Texas, or at the option of the holder at Corpus Christi Bank & Trust, Corpus Christi, Texas. THIS BOND is one of a Series dated as of January 10, 11977, originally authorized in the aggregate principal amount of r. $7,105,000, for the purpose of providing moneys to improve and ,extend the waterworks system of the City. IT IS HEREBY certified, recited and covenanted that II, (this Bond has been duly and validly authorized, issued, and ldelivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that this Bond is a special obligation of the City and that the principal of and interest on this Bond, together with City of Corpus Christi, Texas, Junior Lien Waterworks System Revenue Bonds, Series 1975, originally issued in the aggregate principal u Iiamount of $7,895,000, are payable from, and secured by a lien on and pledge of, the Net Revenues of said City's Waterworks (System, subject to the lien and pledge securing the City's l First Lien Waterworks System Revenue Bonds and certain payments i in accordance with contracts wherein the City is acquiring an I 'interest or interests in a water supply. THE OWNER hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation, nor from any other funds except the afore- said Net Revenues. 11 THE ORDINANCE PROVIDES that, to the extent and in the manner permitted by the terms of the Ordinance, the Ordinance may be amended with the consent of the holders of at least two- thirds in principal amount of all outstanding Bonds and I the said Series 1975 Bonds, provided, that without the consent of the holders of all of the said outstanding bonds, no amend- j I ment shall: (a) make any change in the maturity of the outstanding bonds; (b) reduce the rate of interest borne by any of the outstanding bonds; (c) reduce the amount of principal payable on the outstanding bonds; (d) modify the terms of payment of principal of or interest on the outstanding bonds, or any of them, or impose any conditions with respect to, such payment; (e) change the minimum percentage of the principal amount of bonds necessary for consent to such amendment. IN WITNESS WHEREOF, this Bond and the interest coupons appertaining hereto have been signed with the facsimile signature of the Mayor of said City and countersigned with the facsimile signature of the City Secretary of said City, and the official seal of said City has been duly impressed, or placed in facsimile on this Bond. XXXXXXXXXXXXXX XXXXXXXXXXXXX City Secretary Mayor City of Corpus Christi, Texas City of Corpus Christi, Texas 12 i FORM OF REGISTRAR'S CERTIFICATE FOR ALL BONDS DELIVERED IN EXCHANGE OR SUBSTITUTION FOR SINGLE REGISTERED BOND THIS BOND is delivered in lieu of and in exchange or substitution for Bond Number R -1 which Bond was originally registered by the Comptroller of Public Accounts of the State of Texas under Registration No. Witness my signature and seal this Comptroller of Public Accounts of the State of Texas FORM OF INTEREST COUPON NO. $ ON 10, , the City of Corpus I Ii Christi, Texas, promises to pay to bearer the amount shown on Ithis interest coupon, in lawful money of the United States of II iAmerica, without exchange or collection charges to the bearer, lupon presentation and surrender of this interest coupon, at the i' Mercantile National Bank at Dallas, Dallas, Texas, or at the �I I'option of the holder at the Corpus Christi Bank & Trust, Corpus !I Christi, Texas, said amount being interest due that day on the lBond, bearing the number hereinafter designated, of that issue i of City of Corpus Christi, Texas, Junior Lien Waterworks System i Revenue Bond, Series 1977, dated January 10, 1977. The bearer hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation, nor from any other funds except as described in the Bond to which this interest coupon appertains. Bond No. XXXXXXXXXXXX XXXXXXXXXXXX City Secretary Mayor City of Corpus Christi, Texas City of Corpus Christi, Texas Section S. That the City of Corpus Christi Junior Lien Waterworks Revenue Bonds, Series 1977, (the "Bonds ") authorized hereby are parity "Additional Bonds" as the term is defined and as permitted to be issued in the ordinance dated 13 i October 22,'19.75., (the "1975 Ordinance ") whi . ch7 authorized the I issuance of City of Corpus Christi Junior Lien Waterworks Revenue I i Bonds, Series 1975, (the "Series 1975 Bonds ") and Sections 16 through 20, 22 through 27 and 29 of said ordinance are hereby 'adopted by reference and shall be applicable to the Series 1977 Ji Bonds for all purposes, except to the extent hereinafter specifi- I Ically modified and supplemehted. The Series 1975 Bonds and the !!!Series 1977 Bonds shall be on a parity and of equal dignity in all respects. Section 9. DEFINITIONS. As used in this Ordinance, the following terms shall have the meanings as follows: (a) The term "Bonds ", whether in single registered form or in form of coupon bonds, shall mean the City of Corpus Christi, Texas, Junior Lien Water- works Revenue Bonds, Series 1977, authorized to be issued and delivered by this Ordinance. (b) The term "Custodian" shall mean the State Treasurer of the State of Texas. (c) The term "First Lien Bonds" shall mean all revenue bonds other than Bonds and the Series 1975 Bonds of the City hereafter issued for the purpose of providing money for extensions, improvement or repairs to the System. (d) The term "Net Revenues" shall mean all gross revenues of the System, after deducting the expenses of operation and maintenance of the System, including all salaries, labor, materials, repairs, and extensions necessary to render efficient service, provided, however, that only such repairs and extension, as in the judgment of the governing body of said City, reasonably and fairly exercised by the passage of appro- priate ordinances, are necessary to keep the System in operation and render adequate service to said City and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise impair the Bonds or the Series 1975 Bonds, shall be deducted in determining "Net Revenues ". Pay- ments made by the City for water supply which constitute under the law operation and mainte- nance expenses shall be considered herein as expenses incurred in the operation and mainte- nance of the System. (e) The term "Outstanding" shall mean, when used with reference to First Lien Bonds, Series 1975 Bonds, or Bonds, at any date as of which the amount of Outstanding First Lien Bonds, Series 1975 Bonds, or Bonds is to be deter- mined, the aggregate of all First Lien Bonds, Series 1975 Bonds, or Bonds, except: 14 (1) First Lien Bonds, Series 1975 Bonds or Bonds cancelled at or prior to such date; (2) First Lien Bonds, Series 1975 Bonds or Bonds for the payment of which cash shall have been theretofore deposited with the Custodian or the Paying Agents and which (i) shall have matured by their terms, but shall not have been surrendered for payment or (ii) shall have been purchased, but shall not have been presented for payment of the purchase price; (3) First Lien Bonds and Bonds for the redemp- tion of which cash equivalent to the Redemp- tion Price shall have been theretofore deposited with the Custodian or the Paying Agents; provided that notice of such redemp- tion shall have been given as in the ordi- nance or ordinances authorizing the First Lien Bonds. (f) The term "Paying Agents" shall mean the Mercantile National Bank at Dallas, Dallas, Texas, and Corpus Christi Bank & Trust, Corpus Christi, Texas. (g) The term "Redemption Price" shall mean, when used with respect to a First Lien Bond, the principal thereof plus the applicable premium, if any, payable upon redemption thereof pursuant to the ordinance or ordinances authorizing Bonds prior to the stated maturity date of the Bonds. (h) The term "Registrar" shall mean the Comptroller of Public Accounts of the State of Texas. (i) The term "Series 1975 Bonds" shall mean City of Corpus Christi Junior Lien Waterworks Revenue Bonds, Series 1975, dated October 10, 1975, and authorized and sold pursuant to the 1975 Ordi- nance. (j) The term "System" shall mean the City's entire waterworks system, together with all future improvements, extensions, enlargements, and additions thereto, and replacements thereof. (k) The term "1975 Ordinance" shall mean the ordi- nance passed by the City Council of the City of Corpus Christi dated October 22, 1975, which authorized the issuance and sale of the Series 1975 Bonds. (1) The term "Underlying Bonds" shall mean the City's First Mortgage Waterworks Revenue Bonds refunded by the Series 1975 Bonds. Section 10. PLEDGE. The Series 1975 Bonds and the i Bonds, and the interest thereon, are and shall be payable from and secured by an irrevocable lien on and pledge of the Net Revenues of the System, and said Net Revenues are further pledged irrevocably to the establishment and maintenance of the 15 !'Funds hereinafter created, said lien and pledge being subject only to the lien on and pledge of Net Revenues that may here- after from time to time be established and made by the governing body of the City to secure the payment of principal of and 1 interest on First Lien Bonds of the City, payments into reserve funds established in ordinances authorizing First Lien Bonds i' and payments in accordance with obligations under contracts wherein the City is obtaining or being provided a water supply or an interest therein and such payments are not operation and maintenance expenses under the law. Section 11. RATES. The City covenants and agrees with the holders of the Bonds, as follows: (a) That it will at all times fix, maintain, charge and collect for services rendered by the System, rates and charges which will produce gross revenues at least sufficient to pay all expenses of operation and maintenance, and to provide sufficient Net Revenues equal to no less than 1.25 times amounts adequate to pay promptly all of the principal of and interest on all Outstanding First Lien Bonds, all Outstanding Series 1975 Bonds, all Outstanding Bonds, and to make all deposits now or hereafter required to be made into the Funds created and esta- blished by ordinances authorizing First Lien Bonds and the Series 1975 Ordinance. (b) If the System should become legally liable for any other obligations or indebtedness, the City shall fix, maintain, charge and collect additional rates and charges for I services rendered by the System sufficient to establish and maintain funds for the payment thereof. Section 12. FUNDS. All revenues of the System shall be kept separate and apart from all other funds of the City, and the following special Funds created by the 1975 Ordinance 16 L � shall be maintained at the official depository bank of the City, so long as any of the Series 1975 Bonds or the Bonds or interest thereon are outstanding and unpaid: (a) The City of Corpus Christi Waterworks Revenue Fund, hereinafter called "Revenue Fund "; (b) The City of Corpus Christi Junior Lien Waterworks Revenue Bonds Interest and Sinking Fund, herein- after called the "Interest and Sinking Fund "; (c) The City of Corpus Christi Junior Lien Waterworks Revenue Bonds Reserve Fund, hereinafter called the "Reserve Fund ". Section 13. REVENUE FUND. All gross revenues of every nature received from the operation and ownership of the System shall be deposited from day to day as collected into the Revenue Fund, and the reasonable, necessary, and proper I expenses of operation and maintenance of the System shall be paid from the Revenue Fund. The revenues of the System not actually required to pay said expenses shall be transferred from the Revenue Fund into the Funds created by the 1975 Ordinance, in the manner and amounts as therein and as herein provided, and each of such Funds shall have priority as to such deposits in the order in which they are treated in the following sections, pro- vided that payments required to be made to pay the principal and interest on First Lien Bonds by the terms of ordinances authorizing the issuance of First Lien Bonds, payments to re- serve funds established therein and payments in accordance with obligations under contracts wherein the City is obtaining or being provided a water supply or an interest therein and such payments are not operation and maintenance expenses under the law shall have priority over such transfers to the Junior Lien Interest and Sinking Fund and the Junior Lien Reserve Fund in accordance with this Ordinance. 17 Section 14. INTERLST AND SINI(ING FUND. In addition !'to all other amounts required by the 1975 Ordinance to be deposited in the Interest and Sinking Fund, there shall be deposited into the Interest and Sinking Fund all accrued interest,' from the sale of the Bonds, and also,. from the Net Revenues of 6 � rthe System, there shall be transferred from the Revenue Fund land deposited into the Interest and Sinking Fund the following: (a) Such amounts, in equal monthly installments, made on or before the 10th day of each month, hereafter commencing February 10, 1977, as will be sufficient to pay the interest scheduled to come due on the Bonds on the next interest pay- ment date; and (b) Such amounts, in equal monthly installments, made on or before the 10th day of each month here after, commencing February 10, 1977, as will be sufficient to pay the next maturing principal of j the Bonds. i The Interest and Sinking Fund shall be used to pay the principal of and interest on the Series 1975 Bonds and the Bonds,, as such principal matures and such interest comes due. Section 15. RESERVE FUND. (a) In addition to all other amounts required by the 1975 Ordinance to be deposited i in the Reserve Fund, on or before the 10th day of each month hereafter, there shall be deposited into the Reserve Fund the sum of at least $8,883 until the Reserve Fund shall contain an aggregate amount of $1,350,640. No deposit shall be required to ,be made into the Reserve Fund as long as the Reserve Fund con- tains said aggregate amount, but if and whenever said Reserve Fund is reduced below said aggregate amount, then on or before the loth day of each month thereafter there shall be deposited into the Reserve Fund all of the Net Revenues remaining in the Revenue Fund until the Reserve Fund is restored to said amount. The Reserve Fund shall be used to pay the principal of or interest on the Series 1975 Bonds and the Bonds and, at any time i' ;I when there is not sufficient money available in the Interest ii � d,and Sinking Fund for such purpose, and shall be used finally to I pay and retire the last of the Outstanding Series 1975 Bonds I land the Bonds. i (b) All interest income received by the City from any I investments made pursuant to law of funds in the interest and sinking fund established pursuant to law to secure the payment of the Underlying Bonds upon maturity thereof or redemption j1 prior to stated maturity, shall at the option of the City be i i neither deposited in the Reserve Fund or used for further i Idevelopment of the System. Section 16. FINAL ACCOUNTING TO TEXAS WATER � I DEVELOPMENT BOARD. That the City shall render a final audit and accounting by an independent Certified Public Accountant to the Texas Water Development Board of the total costs incurred by the City in the acquisition and construction of the facilities to be acquired and constructed with the proceeds of the Bonds. If the Texas Water Development Board is at the time the holder of any of the Bonds, and if there are any bond proceeds remain- ing (1) after completion of said facilities or (2) by January 1, j1982, and the project is not then under construction, the City � I shall, if required by Texas Water Development Board, (a) return to the Texas Water Development Board the amount of such excess, i i to the nearest multiple of $5,000.00, and in return therefor, the Board will cancel and deliver to the City a like principal amount of Bonds held by the said Board, or (b) if the single registered Bond remains Outstanding, pay such excess, to the nearest multiple of $5,000.00, to the Custodian in the manner other payments are required herein to be made with respect to such single registered Bond. Section 17. NO- ARBITRAGE. That the City covenants to and with the purchasers of the Bonds that it will make no use 19 Hof the proceeds of the Bonds at any time throughout the term of this issue of Bonds which, if such use.had been reasonably ex- pected on the date of delivery of the Bonds to and payment for !the Bonds by purchasers, would have caused the Bonds to be 'arbitrage bonds within the meaning of Section 103(d) of the :Internal Revenue Code of 1954, as amended, or any regulations or rulings pertaining thereto; and by this covenant the City is ,obligated to comply with requirements of the aforesaid Section !'103(d) and all applicable and pertinent Department of the Treasury Regulations relating to arbitrage bonds. The City further covenants that the proceeds of the Bonds will not other- wise be used directly or indirectly so as to cause all or any part of the Bonds to be or become arbitrage bonds within the meaning of the aforesaid Section 103(d), or any regulations or rulings pertaining thereto. Section 18. APPROVAL AND REGISTRATION OF THE SINGLE REGISTERED BOND. That the City Manager of said City is hereby authorized to have control of the single registered Bond and all necessary records and proceedings pertaining to said Bond pending its delivery and its investigation, examination and approval by the Attorney General of the State of Texas, and its registration J by the Comptroller of Public Accounts of the State of Texas. P Upon registration of said Bond, said Comptroller of Public Ac- counts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate prescribed herein to be placed on such Bond, and the n, seal of said Comptroller shall be impressed, or printed, or lithographed thereon. Section 19. SALE OF BONDS. That the Bonds herein authorized are hereby sold to the Texas Water Development Board, at a price of par plus accrued interest to the date of delivery, plus a premium necessary to adjust interest rates on bonds to Texas Water Development Board statutory lending rate. 20 Section 20. EMERGENCY. The fact that the proceeds of the Bonds are necessary for extensions and improvements to the System and such extensions and improvements are necessary for the orderly development and growth of the City of Corpus Christi, Texas, creates a public emergency and an imperative public neces- sity requiring the suspension of the Charter Rule providing that no ordinance or resolution shall be passed finally on the date it li is introduced and that such ordinance or resolution shall be read at three several meetings of the City Council and the Mayor having declared that such public emergency and imperative necessity exist, and having requested that said Charter Rule be suspended and that this ordinance take effect and be in full force and effect from and after its passage, it is accordingly so ordained. Section 21. REPEALER. That all ordinances and resolu- tions or parts thereof in conflict herewith are hereby repealed. PASSED AND APPROVED this the ,df2 day o 1977 ty of Corp fs ChrigWi, ATTEST: i p City Secretary, City of Corpus Christi, Texas (SEAL) The foregoing Ordinance was approved pr'or to passage as to form and correctness this the � day of , 1977. /1 TC. ASST., City Attorney, Vity of Christi, Texas I I` 21 THE STATE OF TEXAS COUNTY OF NUECES ;'CITY OF CORPUS CHRISTI ! I, the undersigned, City Secretary of the City of i Corpus Christi, Texas, do hereby certify that the above and foregoing is a true, full and correct copy of an Ordinance !'passed by the City Council of the City of Corpus Christi, Texas, (and of the minutes pertaining thereto) on the I !,day 1977, authorizing the issuance of $7,105,000 City of Corpus Christi, Texas, Junior Lien Waterworks System ,:,Revenue Bonds, Series 1977, which ordinance is duly of record in the minutes of said City Council, and-said meeting was open to the public as required by law and public notice of the time, place, and purpose of said meeting was given as required by V.A.C.S., Art. 6252 -17, as amended. EXECUTED UNDER MY HAND AND SEAL OF SAID CITY, this 'I the a G day of i Ci£y Secretary, City of Corpus Christi, Texas (SEAL) 0 1 ' ... ..- " " . .' _.. 1 0 CORPUS CHRISTI, TEXAS 2 e, DAY OF_ JW TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI TEXAS FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING ORDINANCES A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPEN- SION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE IT IS INTRODUCED, AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY COUNCIL; I, TNEREFORE, REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS TN13 ORDI- NANCE FINALLY ON THE DATE IT IS INTRODUCED OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPECTFULLY MIAY R � THE CITY OF CORPUS CHRISTI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: JASON LUBY DR. BILL TIPTON EDUARDO DE ASE$ RUTH GILL Boo GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE THE ABOVE ORDINANCE WAS PASSED BY T E FOLLOWING VOTE: JASON LUBY DR. BILL TIPTON yall EDUARDO DE ASES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE ?� 0