HomeMy WebLinkAbout03981 ORD - 12/15/1954'i"Ynt
THE STATE OF Mxna
COUNTY OF MINCES
CITY OF CORFUS CHRISTI
On this the 1 r day of December, 1954, the City Council
of the City of Corpus Christi, Texas convened in , ZC-Ql -C a, L meeting,
with the following members of said Council present, po -wit:
P. C. Calloway, I:ayor,
Ellroy Kin,—
J. S. Ifiaismith,
Commissioners,
Fran:: Feterson,
W. James Brace,
T. Ray Sring, City Secretary,
Russell E. 14cClure, City I;enager,
I. 11. Sinker, City Attorney,
with the following absent: 7t�N -'I— , constituting
a quorum, at which time the following among other business was transacted:
Hr. presented for the consideration of
the Council an ordinance. The ordinance was read by .::e City .secretary. Me
I:ayor presented to the Council a conmmi:atioa in writing pertaining to said
proposed ordinance, as follows:
Corpus Christi, Texas,
Deceuoer /.5—, 1954.
TO TI !cMSE2S OF = CITY COLUCIL
Corpus Christi, Texas.
Gentlemen:
For the reasons sec forth in the emergency clause of the
foregoing ordinance, a public emergency and imperative necessity exist for
the sus;,ension of the Charter rule or requirement t:.at no ordinance or
resolution shell be passed finally on the dace it is introduced, and that
such ordinance or resolution shall be read at three meesings of the City
Council, I, therefore, hereby 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.
Respectfully,
/s/ P. C. Callaway,
Ifayor
City of Corpus Christi, Texas.
�_ . SCI eE' > 1— . ,,
-t 4 �...
Commissioner wr���n made a motion that the
Charter provisions prohibiting ordinances from being passed finally on the
date introduced be suspended for the reasons stated in the written request of
the Payor and stated in the emergency clause of the ordinance. The notion
was seconded by Commissioner lh'l CZ C.e The motion was carried by
a unanimous vote by t':e City Council, viz:
AYES: Commissioners Iiaismith, F.ing, Peterson, and Brace.
i<AYS: hone. 77
Commissioner �LlL,..YJJtcrlsl made a motion that the
ordinance be passed finally. The motion was seconded by Commissioner
The motion was carried by the following vote:
AYES: Comc:issioners Noismith, Kin„ Peterson and Brace.
PAYS: None.
The I•:eyor 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:
011DIt.A27CE NO.
BY THE CITY COUNCIL OF TEE CITY OF CORPUS CIS ISTI,
TEXAS, PROVDIIIG FOR THE ISSUA'iCE OR CITY OF CORPUS
CHRISTI, TEXAS, SE-t= uTROVE::EIvt AID EXTEIv5IOII REVENUE
BO:DS, SERIES 1954 -A, IN THE AGGREGATE AiIOUNT OF
$1,165,000.00, BFARIIIG INTEREST AT TLE RATES HEREIr-
AFTE.R SPECIFIED, FOR TI-.E PLrr.POSE OF CO`mRUCTIIn 111 -
PROVEIIEIIT'S AID E^A'TE:SIOLS TO Z-2 CRY'S SAJITARY SEtir:..
SYSTE1 i; PRESCRIBING TEE POPE OF BOD; PLEDGEU TiE
REVENUES OF THE CITY'S SAEITA' -.Y SEDER SYSTEM; F..C-
VIDING TEAT THE Lr—N UPOIJ TEE REYEIRJES SECURING SUCH
BOUDS SHALL BE OF EQUAL DIGIUITY AID OIJ A PARITY WITS
THE PLEDGE SECURIln 4,500,000-00 CITY OF CO,-TbS CHRISTI,
TEXAS, SE41E11. 115- ROVEi,'EI12 ABM EF.'TEISION RBME - n BOINDS,
SERIES 1954; nOVIDIING FOR THE EXPEISE OF OPERATILG
SAID SYSTEI,; 1,,A1;II,G CERTAIIJ COVENANTS OF THE CITY Iid
Rn"FEFIENCF. TO _r1E BONDS A;H) THE BOIID FUND FROM WHICH SAID
i 3II:OL °PZ A;dD II-=T ARE TO BE PAID; PROVDIM TEAT
THE EOLD7R OR HOLDErS OF SAID BC1,MS SHALL N.EVE3 FA'JE TEE
RIGHT ^10 DEI;AIrD PAnIEWT OF SAID BOLOS OUT OF AIv'Y FUIIDS
PAISID OR TO BE RAISED BY TA:'ATI011; ORDAIl*IIIG OTHER
IIATTERS RELATING TO THE SUBJECT AID DECLARING AN EIMR-
GEP:CY.
SI"HEREAS, on the 24th day of November, 1953, an electicn was
held in the City of Corpus Christi, Taxas, resulting favorably to the issuance
of $3,000,000.00 Sewer Improvement and Extension Revenue Bonds; and
WHEREAS, on !larch 17, 1954, the City Council of the City
of Coruna Christi, Texas, passed an ordinance directing the issuance of
$1,500,000.00 City of Corpus Christi, Texas, Sewer Improvement and Extension
Revenue Bonds, Series 1954, dated January 15, 1954, (hereinafter called
"Series 1954 Bonds "); and
WHEREAS, said Series 1954 Bonds and said authorizing
ordinance reserved to the City the right to issue the remaining 01,500,000.00
Sewer Improvement and Extension Revenue Eonds voted at the election held on
Novemeer 24, 1953, under the conditions set forth in Section, 20 of said
authorizing ordinance; and
WHMaAS, the conditions prescribed in Section 20 of said
authorizing ordinance have been fulfilled and exist so that the City now has
authority under said Section to issue the remaining vowed bonds herein, author
ad; and
Wi%:dEAS, at this time it is considered proper to sell
One Lillion One Hundred Sixty Five Thousand ($1,105,000.00) Dollars of said
authorized bonds, reserving to the City the right to sell all or any part of
the remainirg authorized Three Hundred Thirty Five ' Mousand ($335,000.00)
,Dollars of bonds, all to be considered when issued as a pert of the same
series of indebtedness insofar as liens and rights are considered; and
WHERMS, it is now necessary and proper that the City
Council proceed with the issuance of such revenue bonds;
BE 1^i ORDAIhED BY TFE CIi'Y COUNCIL OF m;I CITY OF CORPUS
CHRISTI, TEYAS:
1. That to provide funds for the purpose of improving
and extending the City's Sanitary Sewer System, pursuant to the Constitution
and Statutes of the State of Texas, including particularly Articles 1111 to
1110, both inclusive, of 1925 Revised Civil Statutes of Texas, as amended,
and the Charter of said City, there shall be issued City of Corpus Christi,
Texas, Sewer Improvement and Extension Revenue Bonds, Series 1954 -A, augre-
gating One Hillion One Hundred'Siaty Five Thousand ($1,1:65,000.00) Dollars,
numbered from One (1) to One ThoLsard One Hundred Sixty Five (1,165), both
inclusive, of the denomination of One Thousand ($1,000.00) Dollars each.
2. That said bonds shall
be dated December 15, 1954,
and shall bear interest at the rates as follows:
Bonds I;os. 1 to ZOO, both incl., 3 `S per annum;
`
Bonds Nos. Tod toA
Nea
" " J!!sC % per annum;
payable
July 15,
1955, and semi - annually
thereafter on January 15th and July
15th of
each year; principal and interest
of said
bonds shall be payable in
lawful money
of
the United States upon presentation and surrender of bond or
proper coupon at
the Farris Trust e. Savings Bank,
Chicago, Illinois, or, at
the option
of the holder, at the Corpus Christi I:ational Ban!., Corpus Christi,
Texas, and
they
shall mature as follows:
BONDS N'ICIMEOS
I'ATCRIIY DATES
AKOUMIS
1 lo
25, both dncl.,. January 15,
1956,
$ 25,000.00
26 to
55, "
" January 15,
1957,
30,000.00
% to
85, "
" January 15,
1950,
30,000.00
86 to
115, "
" January 15,
1959,
30,000.00
116 to
145,
" January 15,
1960,
30,000.00
146 to
175,
" January 15,
1961,
30,000.00
176 to
205, "
" January 15,
1962,
30,000.00
206 to
235, "
" January 15,
1963,
'0,000.00
235 to
270, "
" January 15,
1964,
35,000.00
271 to
305, "
" January 15,
1965,
35,000.00
305 to
340, "
January 15,
1966:
35,000.00
341 to
375,
January 15,
1967,
35,000.00
376 to
410,
January 15,
1968,
35,000.00
411 to
450,
January 15,
1969,
40,000.00
451 to
490,
" January 15,
1970,
40,000.00
491 to
530, °
January 15,
1971,
40,000.00
531 to
570,
January 15,
1972,
40,000.00
571 to
610,
January 15,
1973,
40,000.00
611 to
655, "
January 15,
1974,
45,000.00
656 to
700,
January 15,
1975,
45,000.00
701 to
745,
January 15,
1975,
li5,000.00
746 to
795,
January 15,
1977,
50,000.00
796 to
845, "
Jeruary 15,
197,,
50,00 .00
846 to
895, "
" January 15,
1979,
50,000.00
8966 to
945,
" January 15,
1950,
50,000.00
946 to
l000, "
January 15,
1981,
55,000.00
1001 to
1055, "
" January 15,
1982,
55,000.00
1056 to
1110,
January 15,
19P-3,
55,000.00
1111 to
1165,
" January 15,
1964,
55,000.00
3. In Bonds Slumbers
Two Hundred Seventy One (271) to
One Thousand One Hundred Sixty Five (1,165), both inclusive, the City shall
reserve
the option of calling each such
bond for
redemption prior to maturity
on the 15th day
of January, 1964, and thereafter
on any interest payment date,
at a price of par and accrued interest to date so fixed for redemption, plus a
premium
of 22LA of the principal amount.
Botice of such redemption is to be
published in a financial publication in the City of New York, New York, at
least once, not less than thirty days before the date fixed for pr *or payment,
_and thirty (30) days' notice in writing is to be given to the places of payment
before the date so fixed for prior payment. At the time said call is made,
funds shall be made available for such purpose in an amount sufficient to pay
the bonds called and accrued interest thereon, plus the premium specified.
If, upon the .happening of the above conditions said bonds are not presented
for payment, they shall not thereafter bear interest. If less than ell of the
bonds outstanding and then sub„ect to prior redemption are called, they shall
be called in their inverse numerical order.
4. Each of said bonds shall be signed by the I11yor and
countersigned bythe City Secretary, and the corporate seal of the City of
Corpus Christi, Texas, shall be impressed upon each of them. The facsimile
signatures of the Mayor and City Secretary may be litbographed or printed upon
the coupons attached to said bonds and shall have the same effect as if they
had been signed by them.
5. That said bonds shall corsLitute special obligations
of said City of Corpus Christi and each of said bonds stall contain the pro-
vision that the holder thereof shall never have the right to deWand payment of
said obligation out of funds raised or to be raised by taxation.
6. The form of said bonds shall be substantially as follow:
NO. _ $1,000.00
UNITED STATES OF AMICA
STATE OF TEXAS
COUIM OF Iu'UECES
CITY OF =US CFMISTI
SFWM IN- ROVEIIENT AND EXTEI'SIOE REVEINE DOI•ID
SERIES IES 1954 -A
The City of Corpus Christi, in the County of Iv'ueces,
State of Texas, a municipal corporation duly incorporated under the laus of
the State of Texas, for value received, hereby acL•nowledges itself indebted to
and promises to pay to the bearer hereof on the 15th day of January, 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 (Wi;) per cent per annum, payable July 15, 1955,
and semi - annually thereafter on January 15th end July 15th of each year, until
the principal sum shall be paid. Interest maturing on and prior to the maturit,
of this bond is payable in lawful money of the United States of America, upon
presentation and surrender of proper coupons as they severally become due, both
principal and interest being payable at the Harris Trust & Savings HenL^,
Chicago, Illinois, or, at the option of The holder, at the Corpus Christi
national Bank, Corpus Christi, Texas.
This bond is one of a series of bonds of like Tenor and
effect, except as to number, interest rate, maturity and right of prior re-
demption, numbered One (1) to One Thousand One Hundred Sixty Five (1,165),
both inclusive, of the denomination of One Thousand (5;1,000.00) Dollars each,
aggregating One Killion One Hundred Sixty Five Thousand ($1,165,000.00) Dollars,
(being _cart of a total authorized issue of Three Million ($3,000,000.00) Dollarr
issued by the City of Corpus Christi, Texas, for the purpose of improving and
extending the City's Sanitary Sewer System, in accordance with the Constitution
and laws of the State of Texas and the Charter of said City, and pursuant to
an ordinance passed by the City Council, duly recorded in the minutes of said
City Council, reference to whic_i ordinance is hereby made for a description of
the funds charged with and pledged to the payment of the interest on and the
principal of the bonds, the nature and extent of the security thereof, end a
statement of all of the rights, duties and obligations of the City and The
rights of the holders of the bonds, to all the provisions and terns of uhich
ordinance the Lolder hereof by the acceptance of this bond assents.
The date of this bond in conformity with the ordinance
above mentioned is December 15, 1954.
- (Bonds riumk-ered Two Hundred Seventy One (271) to One
Thousand One Hundred Sixty Five (1,165), both inclusive, of the issue of uhich
this is one, may be redeemed prior to maturity at the option of the City of
Corpus Christi, Texas, on the 15th day of January, 1964, and on any interest
payment date thereafter, at a price of par and accrued Interest to date so
. :,y_�'}n ?a'^ -waP tlrU>..- .tit.,, =•. '��r�e,�'X+tni'�'hy=
.�jMF: Y � .. �. S.arj•A 3 r t
I�++.�w.1 M � • _ _.. r.rsr '+r++.a4- .M•+sn w.an'.� �+Tw. ... i. .. s./+•
fixed for redemption, plus a premium of 21�4 of the principal amount. I•,otice
of intention to redeem this bond is to be published in a financial publication
in the City of New York, New York, at least once, not less than thirty (30)
days before the date fixed for prior payment, and thirty (30) days' notice
in writing is to be given to the places of payment. At the time said call
is made, funds shall be made available for such purpose in an amount suffi-
cient to Tay this bond and accrued interest thereon, plus the premium speci-
fied. if, upon the happening of the above conditions, this bond is not pre-
sented for redemption, it shall not thereafter bear interest. Ii less then
all of the bonds outstsading and then subject to prior redemption are called,
they shall be called in their inverse numerical order.)
The City reserves the right to issue the remaining
$335,000.00 Revenue Bonds authorized at the election held in said City on
the 24th day of November, 1953, and additional perity revenue bonds for serer
improvements and extensions, under the conditions stated in the ordinance
authorizing this bond, said bonds to be payable from the same source as are
the Bonds of this issue and the Series 1954 Bonds, secured by the same
revenues, and shall be on a parity with this issue of bonds and the Series
2,954 Bonds.
Each successive holder o° this bond during such time as
it is payable to bearer, 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 to agree that
this bond while so payable to bearer, and each of the coupons hereto attached,
may be negotiated by delivery by any person having possession hereof, howso-
ever such possession may have been acquired, and that any holder who shall
have ta_:en this bond or any of the coupons from any person for value and with-
out notice, thereby has acquired absolute title t::erezo, free from any defense
enforceable against any prior holder and free from all equities and claims of
ownership of any such prior holder. Neither the City of Corpus Christi nor
its officials nor the paying agent hereinabove named shall be affected by any
Notice to the contrary.
- � ^- :d{sw' w'•kM, W' - � -. .. .a�,aa.:gyrsrµp�inn..u„
In the event the City later exercises the right to combine
the operations of its waterworks and sanitary sewer systems reserved to it in
Section 31 of the ordinance authorizing the Series 195L Bonds, the bonds of
this issue and the Series 1954 Bonds, together with any additional sewer
system revenue bonds subsequently issued and any revenue bonds theretofore
or thereafter issued for waterworks Purposes, to the extent and in the manner
permitted by law at such time, will be payable from the revenues of the com-
bined systems, including all additions, extensions end improverents thereafter
made to said combined systems, and, if so su'4horized by Ism and prescribed by
the City, may be further secured by a mortGage on the conjoined systems.
This bond and the series of which it is a part, together
with City of Corpus Christi, Texas, Sewer Improvement and Extension Revenue
Bonds, Series 1954, dated January 15, 1954, issued and now outstanding in
the amount oP ^y1,54 D,GOC.CD, constitute special obligations of the City Of
Cor-ous'Christi, Texas, payable both as to principal and interest from and
secured by a first lien on and eledge of the revenues of the Sewer System,
after deduction of reasonable operation and maintenance expenses, including
all salaries, labor, materials, repairs and extensions necessary to render
efficient service. The holder hereof stall never have the right to de:-and
payment of this obligation out of funds raised or to be raised by taxation.
AND IT IS FEREBy CMTI IED AIM IXCr ED that the issuance
of this bond and the series of which it is a part, is duly authorized by law
and by a me,;ority of he resident, qualified electors owning taxable property
in said City, and who had duly rendered the same for tastion, voting at an
election held for that purpose within said City on the 24th day Of I'ovember,
1953; that all scts,conditions and things required to exist precedent to and
in the issuance of this bond to render the same lawful and valid have been
properly done, have happened and been performed in regular and due time, form
and manner as required by the Constitution and laws of the State of Texas, an(
the ordinance hereinabove mentioned, and that this series of revenue bonds do(
not exceed any constitutional or statutory limitations, and that provision ha.
been made for the payment of the principal and interest of this bond and the
series of which it is a part by irrevocably pledging to the payment thereof t
net revenues ofsaid sewer system of said City of Corpus Christi.
si.
-p^nsp - :raa}1 ., f5" ?.'�• � •- . s+- %Rfj1,kLW*
IN TFSTMONY WHEF.FOF, the City Council of the City of
Corpus Christi, Texas, has caused the seal of said City to be impressed hereon
and this bona to be signed by the Mayor of said City and countersigned by the:
City Secretary and has caused the annexed coupons to be signed by the litho-
graphed or printed facsimile signatures of the Mayor and City Secretary.
2leyor, City oY Corpus Christi, Texas.
COUifiERSIGIMD:
City Secretary, City of Cor_us Christi,
Te:;as.
'(Bonds ros. 1 to 740 , both incl., J r, per
pe-
Bands Uoo . d/ to S, � ann
Bonds I:os. _ to per annrni.
m.
th incl.)
j> ,, (TI parary'reph should be omitted from Bo.ids NOS. 1 to 270, be
. The form of said coupons shall be substantially as
follows:
w
oI7 Ta 15TH DAY OF
19_
The City of Corpus C'rristi, Texas, out of revenues
specified in the bond 'co which this coupon is attached, will pay to bearer
*(unless the bond to which this coupon is attached shall have teen called
for previous redemption as therein provided and provision for the rede. -ption
thereof made), at the Farris ,r�st C: Savings Bank, Chicago, Illinois, or at t
e_ntion of the holder, at phe Corpus Christi Ilaticnai Bell' Corpus Christ'_,
( ;; ) Dollars
Te::as, the sem o£
in lawful money of the United States of America, said sum being interest
due that day on 'City of Corpus Christi, Texas, Sewer Improvement and Ex-
tension Revenue Bond, Series 1954 -A ", bearing the number hereinafter speci-
fied, dated December 15, 1954. The holder hereof shall never cave the right
to demand psynent of this obligation mat of funds raised ox• to be raised by
taxation. Bond I•io.
City Secretary Ieyor.
*(This parenthetical expression should be printed only in coupons maturing
July 15, 1964, and subsequent.)
8. The form of Comptroller's certificate, which shall be
printed on the bath of each bond shall be substantially as follows:
OFFICE OF CObPr!OLLER
STATE OF TEF.AS
I IDUMY 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 the Charter of said City, and that it is a valid
and bindin6 special obligation of said City of Cornus Christi, Texas, 1eyable
from the revenues pledged to its payment by and in the ordinance authorizing
save, and said bond has this day been registered by me.
S•IITIESS AfY HAIM and seal of office at Austin, Texas,
I
Comptroller of =tblic Accounts of the
State of TeXss.
(SEAL)
9. That after the bonds have been executed by the City
Officials as bereinabove provided, they shall be presented to the Attorney
General of tie State of Texas for examination and a?provel. After the bonds
have been approved by the Attorney General, they shall be registered by the
Comptroller of Peblic Accounts of the State o, Texas.
10. All of the covenants, provisions, powers end con-
ditions contained in the ordinance passed on larch 17, 1954, authorizing the
Series 1954 Bonds, securing such bonds, shall secure said Series 1954 -A Bonds,
and apply to and govern the rights of the holders thereof, as fully and
effectually and to the same extent and in the same manner as if all of said
covenants, provisions, powers and conditions have been heaefully set forte.
The said Series 1954 Bonds and the Series 1954 -A Bonds
shall be on a parity in all respects so that no bond of either series shell
be entitled to any preference or priority over any bond of the other series.
11. In addition to the amount required by said ordinance
of March 17, 19954: to be deposited into the Bond Fund, the City shall pay into
said Fund during each year an amount- equal to 100 per certLm of the ainount
<<+{�yxp:lK' -.yd y,. - u�:��,'{p,�iC,•SY�K"+"?•L •k• Ka�P7�; Sfl�; ^'
required to meet the interest and principal payments on this issue of bonds
falling due on or before the next maturity date of the bonds. In addition to
suchrayment, the City shell pay into the Bond Fund from the System Fund in eac
year 20 per centum of the above required amount until such time as there is in
the Bond Fund an amount sufficient to %eet the interest and principal payments
of this issue of bonds falling due on or before the next maturity date cf the
bonds and plus an amount equal to tl:e mazimum principal and interest payment
L-ecoming due on this issue in any future year. The erount thus required to be
ga,'d into the Bond Fund in each year shall be paid in substantially equal men -
thly payments.
12. In addition to the deposits required by Section 11
of this ordinance, the City shell continue to pay into the Operating reserve
Fund, created by said ordinance of Yarch 17, 1954, on or before the 15th day
of each month, after the required :payments have been made into the Bond Fund
(including t-:e Reserve Acco unt), out of money remaining in the System Fund
Such amounts as will in appro ::innately equal monthly installments accumulate
in said Operating Reserve Fund witha four years a sum at least equal to one-
half (1/2) of the total eperating and maintenance expenses for the re::t pre-
ceding fiscal year.
13• Without limiting the generality of the provisions
of Section 10 above, the City specifically covenants, as follows:
A. RATES: The City shall fix races and collect cher„es
which will provide revenues sufficient at all times:
(1) To pay all operation, maintenance, depreciation,
replacement and betterment of the system;
(2) To establish and maintain Bond Fund, including the
Feserve Account;
(3) To establish and maintain the Operating Reserve Fund;
(4) To Day all outstanding indebtedness against the system
as and when the same becomes due and to provide also that no free service
shall be allowed.
' � I '��atY';js9trNc.?, .,�, , +7 -• - I - uglu.a:�ireH'•, 1- ..,
B. APPLICATEI7 OF RE IXUFS: All revenues derived from~
the operation of the system shall be deposited into the System Fund. The
System Fund shall be administered as follows:
1. MAIMENANCE AND OPERATION: From the coneys in the
System Fund the City shall pay the expense of operation and maintenance of the
system, including salaries, labor, materiels, and such repairs and extensions
as are necessary to keep the system in operation and render adequate service.
2. BO:ID FUM: After the payment of expenses as provided i
the preceding paragraph, the City shall pay from the moneys in the System Fund
into the Eoad Fund an amount equal`to one hundred (1000 per centum of the
amount required to meet the interest and principal payments falling due on or
before the next maturity date of the bonds. In addition to such payments the
City shall pay into the Reserve Account of the Boyd Fund from the System -Fund
in each year an additional sum equal to twenty (20;i) per centum of the above
required principal and interest payments until such time as there is in the
Reserve Account an amount equal to the maximum principal and interest payment
becoming due in any fuzure year. The moneys in the Bond Fund and Reserve
Account shall be used solely for the purpose Of paying interest and premiums
on, and principal of, the bonds until all bonds have been retired.
3. O"MATING RESERVE FUND: On or before the 15th day of
each month after the required payments have been made into the Bond Fund and
the Reserve Account, there shall be deposited in the Operating Reserve Fund
out of the funds remaining in the System -Fund such payments as will in aunroxi-
netely equal monthly installments accumulate in the Operating Reserve Fund
within four years, a sum at least equal to one -half (1/2) of the total o_nerst-
ing and maintenance expenses for the previous fiscal year. The deposits into
this fund shall be subordinate to those required to be made into the Bond Fund
and the Reserve Accoiunt.
4. SMPLUS: Any funds remaining in the System Fund after
the payments have been made into the Bond Fund, the Reserve Account and the
Operating Reserve Fund, may be used for the purchase of bonds at not exceeding
the principal amount thereof, exclusive of accrued interest, or to redeem bonds
in accordance with the option provision set out in the bonds, or such surnlus
may be used for any other purpose permitted by law.
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C. ADDITIW�AI. PARITY HDIDS: The City' covenants and 4ag'rees
that it will not issue any additional bonds on a parity with these bonds pay-
able from or secured by a pledge of the revenues of the Sewer System except
upon the following terms and conditions:
1. That the net revenues of the system for the twelve
months period next preceding the date of the bonds (as certified by a Certi-
fied Public Accountant) were equal to at least one and three - fourths (1- 3j4ths)
times the highest total amount of arincipal and interest to become due in any
future twelve month period on all obligations alien outstanding and then to be
issued.
2. That Lhe City is not in default as to any covenant,
condition or obligation contained in t'he Bond Ordinance.
3. That the City is not in default in the payment of
principal or interest on any of these bonds and there is no deficiency in any
of its Reserve Funds for these bonds.
4. That the proposed Additio.iel Parity Bonds shall have
been authorized by a vote of the qualified electors.
5. That such Additional Parity Bonds are made to mature
on January 15th of each year a_d Lhat interest is Lade pa,,•able on Jan.:ary 15Lh
and duly 15th of each year.
6. That a certificate by a arslified profesaiozal engineer
shall show that estimated future net earnings will be not less than one and
three - fourths (1 -3/4) times the highest total of principal end interest to
become due in any future twelve month period on all obligations then outstand-
ing and then to be issued.
D. iAIIM.0.110E AIv'D OPERATION: The City shell maintain
the system in good condition and operate the same in an efficient canner and
at a reasonable cost.
E. IISURANCE: "The City agrees to maintain insurance for
the benefit of the holders of the Sanitary Sever System Revenue Bonds on t : :a
system of a kind and in an amount which usually would be carried by private
companies engaged in a similar ty_?e of business.
P. ACCOUNTS AIID FMIODIC STAMIEITS: The City shall
cause an audit of the records of the system to be made each year by a Certi-
fied Public Accountant and a copy of such audit together with tte latest
available operating and income statement will be furnished promptly when
available to any of the holders of the bonds upon written request.
G. INSIiECTIOIT: The holder or holders of twenty -five
(25+) per cent'um of the outstanding bonds shall have the right at all reason-
able times zo inspect tine system and all records, accounts and data of the
City relating thereto.
H. PLUU1E AU WITY TO COIBII.a Sl;v M, AID :•TA'i::nri0:;;;5
SYSMB: In the event the City later ootains necessary authority it may
• combine the operations of its newer and waterworks systems. If and when such
event occurs these bonds, together with revenue bonds issued for waterworks
prrposes, then outstanding and any additional cevenae bonds theretofore or then
after issued for sanitary sewer or waterworks purposes, will be yayable from
and secured by an irrevocable pledge of and lien on the revenues of arch cor.-
bined systems, and a mortgage on the waterworks system, and if so prescribed
by the City, my be further secured by a mortgage on the sewer system in the
manner and to the extent permitted by law at the tine. It is vrovided, 'r.ow -
ever, that the systems will not be conbined unless it is shown that the aggre-
gate net earnings of the sanitary sewer and vateiwor: :s system for the rreced-
ins twelve months period were not less then one and three- foist-s (1 -3/4)
times the maximum aggregate total amount of principal and interest to become
due in any future twelve month period on all revenue obligations then outstard-
ins which were issued either for sanitary sewer or for waterworks p`.r:Poses,
or for both such purposes.
14. the sale of the bonds herein authorized to
at a price of per and accrued interest to date of delivery plus a premium of
00
$ 2 6 Sx > is hereby confirmed. Delivery of such bonds shell be made
to such ptschaser as soon as may be after the message of this ordinance upon
payment therefor in accordance with the terms of sale.
15. The fact that the contemplated use of the proceeds
of the sever revenue bonds are necessary for the orderly development and
grcvth of the City of Corpus Christi, Texas, creates a public emergency and
an imperative public necessity requiring the suspension of the Charter Rule
providing vbet no ordinance or resolution shall be passed filially on the date
it is introduced, and that such ordinance or resolution shall be reed at three
several meetings of the City Council and the Mayor having declared that such
public emergency and imperative necessity e::ist, 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.
PASSED AIM APPRO -his the �S day of Deceaoer, 19515.
Slayor, City of Corpus Christi, xas.
AAT—TEST: _
City Secretary, City of Corpus Christi,
Texas.
The foregoing ordinance has been approved as to form and
correctness this A✓- day of December, 1954.
` Oi y Attoy,Tfey,
3 C-1 F) I