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HomeMy WebLinkAbout257 07-29-1965ORDINANCE N0. 257 ORDINANCE AUTHORIZING ISSUANCE OF $3,600,000 "CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1965" AND $2,200,000 "CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1965 -A, ALL DATED JULY 152 1965 THE STATE OF TEXAS CITY OF EULESS COUNTY OF TARRANT ON THIS, the 29th day of July, 1965, the City Council of the City of Euless, Texas, convened in Special Session at the regular meeting place thereof in the City Hall, there be- ing present and in attendance the following members, to wit: W. G. FULLER FRANK E. DOUGLASS BOBBY R. FULLER HAROLD D. SAMUELS DON R. WARREN and VADA FERRIS (Mrs.) MAYOR COUNCILMEN CITY SECRETARY also being present,. and with the following absent BILL L. BYERS constituting a quorum, at which time the following, among other business, was transacted, to wit: Mayor Fuller introduced a proposed ordinance. The ordi- nance was read in full. Councilman Fuller made a motion that the Charter pro- vision requiring ordinances to be read at two regular Council meetings be suspended. The motion was seconded by Councilman Warren and carried by the following vote: AYES: Councilmen Bps, Douglass, Fuller, Samuels and Warren NAYS: None Councilman Warren made a motion that the o�:dinance be passed finally as an emergency measure. The motion was seconded by Councilman Samuels and carried by the follow - ing vote: AYES: Councilmen -Byev:s5 Douglass, Fuller, Samuels and Warren passed. The Mayor announced that the ordinance had been finally The ORDINANCE is as follows: "AN ORDINANCE by the City Council of the City of Euless, Texas, authorizing the issuance of $3,600,000 "CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1965" and $2,200,000 "CITY OF EULESS, TEXAS, WATERWORKS .AND SEWER SYSTEM REVENUE BONDS, SERIES 1965 -A," all dated July 15, 1965, of which the sum of $3,410,000 is for the purpose of purchas- ing, constructing and /or otherwise acquiring a water- works, and of which the sum of $2,390,000 is for the purpose of purchasing, constructing and /or otherwise acquiring a sanitary sewer system, including sanitary disposal equipment and appliances for the City of Euless, Texas, as authorized by the general laws of the State of Texas, particularly Article 1111 et seq. and 2368a, V.A.T.C.S., as amended; prescribing the form of the bonds. and the form of the interest cou- pons; pledging the net revenues of the combined water- works and sanitary sewer system to the payment of the principal and interest on said bonds; enacting provi- sions incident and related to the subject of this or- dinance; and declaring an emergency." WHEREAS, pursuant to the provisions of Article 2368a, V.A.T.C.S., as amended, the City Council has caused to be pub- lished "NOTICE OF CITY OF EULESS'S INTENTION TO PURCHASE, CON- STRUCT AND /OR OTHERWISE .ACQUIRE A WATERWORKS AND SANITARY SEWER SYSTEM AND TO ISSUE WATERWORKS .AND SEWER SYSTEM REVENUE BONDS TO PROVIDE FUNDS THEREFOR" in a newspaper of general circula- tion in and published in the City of Euless, Texas, once a week for two (2) consecutive weeks, the date of the first publica- tion being at least fourteen (14) days prior to the date here- of; and WHEREAS, as of this date, no petition has been filed with the City Secretary, or in any manner submitted to any other official of the City or to this City Council, under the provisions of Section 11 of said Article 2368a, asking that the question of whether or not such waterworks and sanitary sewer system, either or both, shall be purchased, constructed and /or otherwise acquired, be submitted to a referendum; and WHEREAS, it is therefore desirable, necessary and pro- per for the City Council to proceed with the authorization of bonds, as contemplated by the provisions of the notice aforesaid, finding it advisable that the bonds he-rein author- ized be separated into, and issued as two series, to be designated "SERIES 1965" and "SERIES 1965 -A," with respec- tive terms and conditions relating thereto as hereinafter provided, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EULESS: 2. RELATING TO SERIES 1965 BONDS SECTION 1: Authorization - Principal Amount - Designation. That, in order to borrow the sum of THREE MILLION SIX HUNDRED THOUSAND DOLLARS ($3,600,000) of whichthe sum of $2,115,000 shall be for the purpose of purchasing, constructing and /or otherwise acquiring a waterworks, and the sum of $1,485,000 shall be for the purpose of purchasing, constructing and /or otherwise acquiring a sanitary sewer system for the City of Euless, the City Council of the City of Euless, Texas, by virtue of the authority of the general laws of the State of Texas, particularly Articles 1111 et seq, and 2368a V.A.T.C.S. as amended, has determined that there shall be issued, and there is hereby ordered to be issued a series of coupon bonds to be designated "CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1965," aggregating the sum of $3,600,000, payable as to both principal and interest solely from and secured by a first lien on and pledge of the revenues of said waterworks and sanitary sewer system so acquired, after deducting reasonable expenses of maintenance and operation, as such expenses are defined by statute, hereinafter referred to as "net revenues." SECTION 2: Date - Numbers - Maturities - Option. That said bonds shall be dated JULY 15, 1965, shall be numbered consecutively from one (1) through seven hundred twenty (720), shall be in denomination of Five Thousand Dollars ($5,000) each, aggregating the principal sum of THREE MILLION SIX HUNDRED THOU- SAND DOLLARS ($3,600,000), and shall become due and payable serially on July 15 in each of the years in accordance with the following schedule: Bond Numbers (All Inclusive) Maturity Amount 1 to 9 1973 $ 45,000 10 to 20 1974 55,000 21 to 31 1975 55,000 32 to 42 1976 55,000 43 to 54 1977 60,000 55 to 66 1978 60,000 67 to 79 1979 65,000 80 to 93 1980 70,000 94 to 107 1981 70,000 108 to 122 1982 75,000 123 to 138 1983 80,000 139 to 154 1984 80,000 155 to 171 1985 85,000 172 to 188 1986 85,000 189 to 207 1987 95,000 208 to 226 1988 95,000 227 to 246 1989 100,000 247 to 267 1990 105,000 268 to 289 1991 110,000 290 to 312 1992 115,000 313 to 336 1993 120,000 337 to 361 1994 125,000 362 to 387 1995 130,000 0 388 to 414 1996 $ 135,000 415 to 443 1997 145,000 444 to 473 1998 150,000 474 to 504 1999 155,000 505 to 536 2000 160,000 537 to 570 2001 170,000 671 to 605 2002 175,000 606 to 642 2003 1853,000 643 to 680 2004 190,000 681 to 720 2005 200,000 PROVIDED, HOWEVER, the City reserves the right to redeem the bonds of this Series due July 15, 1974 and subsequent, in whole or in part, on July 15, 1973, or on any interest payment date thereafter, at the price of par and accrued interest to the date fixed for redemption, plus premiums as follows: THREE PER CENTUM (3 %) of the par value thereof if redeemed on July 15, 1973, or on any interest payment date thereafter, to and including January 15, 1978; TWO PER CENTUM (2 %) of the par value thereof if redeemed on July 15, 1978, or on any interest payment date thereafter, to and including January 15, 1983; ONE PER CENTUM (1 %) of the par value thereof if redeemed on July 15, 1983, or on any interest payment date thereafter, to and including January 15, 1988; and on July 15, 1988, or on any interest payment date thereafter, at the price of par and accrued interest to the date fixed for redemption; and PROVIDED, FURTHER, that, if less than all of said bonds are redeemed, the same shall be redeemed in inverse numerical order; and PROVIDED, FURTHER, that at least thirty (30) days prior to any interest payment date upon which any of said bonds are to be redeemed, notice of redemption, signed by the City Secretary ( specifying the serial numbers and amounts to be redeemed) shall have been published once in a financial journal of general circulation published in the City of New York, New York, and shall have been filed with BANKERS TRUST COMPANY, New York, New York. Should any bond or bonds not be presented for redemption pur- suant to such notice, and if by the date so fixed for redemption the City shall have made available funds sufficient to pay such bonds and accrued interest thereon to the redemption date, plus the specified redemption premiums, if any, the same shall cease to bear interest from and after the date so fixed for redemption. SECTION 3: Interest. That said bonds shall bear interest from date to maturity at the rate of FIVE AND ONE HALF PER CENTUM (5 -1/2 %) per annum, from date to July 15, 1968, said interest to be evidenced by two attached coupons for each interest install- ment: One in amount equal to FOUR AND ONE EkLF PER CENTUM (4 -1/2 %) per an_,um, and the other in amount equal to ONE PER CENTUM (1 %) per annum; and therafter from July 15, 1968, said bonds shall bear interest at the rate of FOUR AND ONE HALF PER CENTUM (4 -1/2 %) per annum, evidenced by one attached coupon for each installment of interest, to maturity; such interest to be payable on January 15, 1956, and semi - annually thereafter on July 15 and January 15 in each year. Either of the two attached coupons for each inter- est installment to mature January 1 1966 through duly 15, 1968 aforementioned, may be presented separately for payment and, if so presented, will be paid apart from the other. �i 4. i' SECTION 4: Form of Bonds. The form of said bonds shall be substantially as follows: No. UNITED STATES OF AMERICA $5,000 STATE OF TEXAS COUNTY OF TARRANT CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BOND SERIES 1965 The CITY OF EULESS, in the County of Tarrant, State of Texas, a municipal corporation duly incorporated under the laws of the State of Texas, FOR VALUE RECEIVED, hereby acknow- ledges itself indebted to and promises to pay out of revenues specified in this bond, to the bearer hereof, on the FIFTEENTH DAY OF JULY, 19�, the sum of FIVE THOUSAND DOLLARS ($5,000), in lawful money of the United States of America, with interest thereon from the date hereof to maturity, payable in amounts as specified by the attached coupons, on January 15, 1966, and semi - annually thereafter on July 15 and January 15 in each year, such interest falling due on or prior to maturity hereof being payable only upon gcesentation and surrender of the interest coupons hereto attached as they severally become due. AS EVIDENCED by said coupons hereto attached, this bond bears interest at the iate of FIVE AND ONE HALF PER CENTUM (5 -1/2 %) per annum, from date hereof to July 15, 1968, as evi- denced by two coupons attached for each interest installment, one in amount equal to FOUR AND ONE HALF PER CENTUM (4 -1/2 %) per annum, and the other in amount equal to ONE PER CENTUM (1 %) per annum; either of which coupons, when due, may be pre- sented separately for payment and, if so presented, will be paid apart from the other. From and after July 15, 1968, this bond bears interest at the rate of FOUR AND ONE HALF PER CENTUM (4 -1/2 %) per annum, evidenced by one attached coupon for each interest-installment until maturity thereof. BCrH PRINCIPAL AND INTEREST of this bond are payable at BANI=S TRUST COMPANY, New York, New York, without exchange or collectic-. charges to the owner or holder, and the City of Euless, Texas, is hereby held and firmly bound to apply the pledged appropriated revenues of its combined Waterworks and Sanitary Sewer System to the prompt payment of interest on this bond as it falls due and the principal -L-1--ereof at its maturity, and to pay the principal and interest as they mature. THIS BOND is one of a Series of Seven Hundred Twenty (720) serial bonds, all of like tenor and effect except as to number, interest rate, right of prior redemption and maturity, numbered consecutively from One (1) to Seven Hundred Twenty (720), in denomination of FIVE THOUSAND DOLLARS ($5,000) each, aggregat- ing THREE MILLION SIX HUNDRED THOUSAND DOLLARS ($3,600,000), 5. issued by the City of Euless for the purpose of providing funds for acquiring a combined waterworks and sanitary sewer system for the City of Euless, all pursuant to the Constitution and laws of the State of Texas, particularly Articles 1111, et seq., and 2368a, V.A.T.C.S., as amended, and an ordinance duly passed by the City Council of the City of Euless, duly recorded in the Minutes of said Council. THE DATE of this bond, in conformity with the ordinance above mentioned, is JULY 15, 1965. AS PROVIDED in t:e said ordinance, the City reserves the right to redeem the bonds of this Series due July 15, 1974 and subsequent, in whole or in part, on July 15, 1973, or on any interest payment date thereafter, at the price of par and ac- crued interest to the date fixed for redemption, plus premiums as follows: THREE PER CENTUM (3 %) of the par value thereof if -redeemed on July 15, 1973, or on any interest payment date thereafter, to and including January 15, 1978; TWO PER CENTUM (2 %) of the par value thereof if redeemed on July 15, 1978, or on any interest payment date thereafter, to and including January 15, 1983; ONE PER CENTUM (1 %) of the par value thereof if redeemed on July 15, 1983, or on any interest payment date thereafter, to and including January 15, 1988; and on July 15, 1988, or on any interest payment date thereafter, at the price of par and accrued interest to the date fixed for redemption; PROVIDED, HOWEVER, that, if less than all of said bonds are redeemed on any such interest payment dates, the same shall be redeemed in inverse numerical order, and PROVIDED, FURTHER, that at least thirty (30) days prior to any interest payment date upon which any of said bonds are to be redeemed, notice of redemption, signed by the City Secretary (specifying the serial numbers and amounts to be redeemed) shall have been pub- lished once in a financial journal of general circulation publi- shed in the City of New York, New York, and shall have been filed with BANKERS TRUST COMPANY, New York, New York. Should any bond or bonds not be presented for redemption pursuant to such notice, and if by the date so fixed for redemption the City shall have made available funds sufficient to pay such bonds and accrued interest thereon to the redemption date, plus the specified re- demption premiums, if any, the same shall cease to bear interest from and after the date so fixed for redemption. THIS BOND and all bonds of its Series constitute special obligations of the City of Euless, Texas, and, together with all "CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1965 -A" being issued concurrently herewith in the principal sum of $2,200,000, are each payable as to principal and interest and equally secured by a first lien on and pledge of the revenues of the City's Waterworks and Sanitary Sewer System, after deduction of reasonable and necessary expenses of opera- tion and maintenance. The CITY, however, expressly reserves the right to issue further and additional revenue bond obligations, in all things on a parity with the bonds of this Series and of the "Series 1965 -A" above referred to, and payable from and equally secured by a first lien on and pledge of `he net revenues of the City's combined Waterworks and Sanitary Sewer System; provided, however, 6. that any and all such further bonds may be so issued only in accordance with and subject to the covenants, conditions, limi- tations and restrictions relating thereto which are set out and contained in the ordinance authorizing this Series of bonds, and to which ordinance reference is hereby made for full and complete particulars. THE HOLDER hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. EACH SUCCESSIVE holder of this bond and each successive holder 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 and each of the coupons hereto attached may be negotiated by delivery by the person having possession thereof, however such possession may have been acquired, and that any holder who shall have taken this bond or any of the coupons from any person for value without notice thereby has acquired absolute title there- to, free from.all equities and claims of ownership of any such prior holder. The City of Euless, its officials and the pay- ing agent hereinabove named, shall not be affected by any not- ice to the contrary. AND IT IS HEREBY CERTIFIED AND RECITED, that the issuance of this bond and the Series of which it is a part is duly authorized by law; that all acts, conditions and things required to exist and to be done precedent to and in the issuance of this bond to render the same lawful and valid have been properly done, have happened and have been performed in regular and due time, form and manner as required by the Constitution and laws of the State of Texas, and the ordinance hereinabove mentioned; that this Series of revenue bonds does not exceed any constitu- tional or statutory limitations; and that provision has 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 therefor the net revenues of the City's combined Waterworks and Sanitary Sewer System. IN TESTIMONY WHEREOF, the City Council of the City of Euless, Texas, in accordance with the provisions of the "Texas Uniform Facsimile Signature of Public Officials Act" enacted by the 57th Legislature of Texas at its Regular Session in 1961, has caused the seal of said City to be impressed or a facsimile thereof to be printed hereon, and this bond and its appurtenant coupons to be executed with the imprinted facsimile signatures of the Mayor and City Secretary of said City, as of the 15th day of July, 1965. C0UNTLRSIGv ED, : City Secretary, City of Euless Mayor, City of Euless, Texas Texas i 7. SECTION 5: Coupon Form. The form of said interest coupons shall be substantially as follows: No. ON THE FIFTEENTH DAY OF $ 19 (unless the bond to which this coupon pertains has been properly called for redemption in accordance with its terms), the City of Euless, a municipal corporation of the State of Texas, hereby promises to pay to bearer the amount shown here- on out of funds specified in the bond to which this coupon is ­_ttac:ed, and in lawful money of the United States of America, without exchange or collection charges to the owner or holder, at BANKERS TRUST COMPANY, New York, New York, said sum being six months' interest due that day on "CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BOND, SERIES 1965," dated July 15, 1965. 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 Mayor RELATING TO SERIES 1965 -A BONDS SECTION 6: Authorization - Principal Amount - Designation That, in order to borrow the sum of TWO MILLION TWO HUNDRED THOUSAND DOLLARS ($2,200,000) of which the sum of $1,295,000 shall be for the purpose of purchasing, constructing and /or otherwise acquiring a waterworks, and the sum of $905,000 shall.be for the purpose of purchasing, constructing and /or otherwise acquiring a sanitary sewer system for the City of Euless, the City Council of the City of Euless, Texas, by virtue of the authority of the general laws of the State of Texas, particularly Articles 1111 et seq. and 2368a, V.A.T.C.S. as amended, has determined that there shall be issued, and there is hereby ordered to be issued a series of coupon bonds to be designated "CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1965 -A" aggregating the sum of $2,200,OQO, payable as to both principal and interest solely from and secured by a first lien on and pledge of the revenues of said waterworks and sanitary sewer system so acquired, after deducting reasonable expenses of maintenance and operation, as such expenses are defined by statute, hereinafter referred to as "net revenues." SECTION 7: Date - 1dumbers - Maturities - Option. That said bonds shall be dated JULY 15, 1965, shall be ilumbered consecutively from one through four hundred forty (440) , shall be in denomination of Five Thousand Dollars ($5,000) each, aggregating the principal sum of TWO MILLION T1�70 HUNDRED THOUSAI D DOLLARS ($2,200,000), and shall become due and payable serial�y on July 15 in each of the years in accordance with the follow2 - schedule: 1' *NOTICE TO PRINTED.: The expression in parenthesis to be in- cluded only in coupons maturing January 15, 1974 and subsequent. Bond Numbers (All Inclusive) Maturity Amount 1 to 5 1973 $ 25,000 6 to 11 1974 30,000 12 to 18 1975 35,000 19 to 25 1976 352000 26 to 32 1977 353-000 33 to 40 1978 40,000 41 to 48 1979 40,000 49 to 56 1980 40,000 57 to 65 1981 45,000 66 to 74 1982 45,000 75 to 83 1983 451000 84 to 93 1984 50,000 94 to 103 1985 50,000 104 to 114 1986 55,000 115 to 125 1987 553,000 126 to 137 1988 60,000 138 to 149 1989 60,000 150 to 162 1990 653,000 163 to 175 1991 65,000 176 to 189 1992 703000 190 to 203 1993 70,000 204 to 218 1994 75,000 219 to 234 1995 80,000 235 to 251 1996 85,000 252 to 268 1997 85,000 269 to 286 1998 90,000 287 to 305 1999 95,000 306 to 325 2000 100,000 326 to 346 2001 105,000 347 to 368 2002 110,000 369 to 391 2003 115,000 392 to 415 2004 120,000 416 to 440 2005 125,000 PROVIDED, HOTTEVER, the City reserves the right to redeem the bonds of this Series, In whole or in part, on January 15, 1966, or on any interest payment date thereafter, at the price of par and accrued interest to date fixed for redemption, plus premiums as follows: FOUR PER CENTUM (4 %) of the par value thereof if redeemed on January 15, 1966, or on any interest payment date therea.iter, to and including January 15, 1973; THREE PER CENTUM (3 %) of the par value thereof ii redeemed on July 15, 1973, or on any interest payment date thereafter, to and including January 15, 1978; TWO PER CENTUM (2 %) of the par value thereof if redeemed on July 15, 1978, or on any interest payment date thereafter, to and including January 15, 1983; ONE PER CENTUM (1 %) of the par value there - of if redeemed on July 15, 1983, or on any interest payment date thereafter, to and including January 15, 1988; and on July 15, 1988, or on any interest payment date thereafter, at the price of par and accrued interest to the date fixed for redemption; PROVIDED, HOTWEVER, that, if less than all of said bonds are redeemed on Zny such interest payment dates, the same shad be redeemed in c:2-rect numerical order; and PROVIDED. FUR - THER, that at least thirty (30) days prior to any interest pay - ment date upon which any of said bonds are to be redeemed, not - ice of redemption, signed by the City Secretary (specifying the 9. serial numbers and amounts to be redeemed) shall have been published once in a financial journal of general circulation published in the City of New York, New York,and shall have been filed with BANKERS TRUST COMPANY, New York, New York, Should any bond or bonds not be presented for redemption pur- suant to such notice, and if by the date so fixed for redemp- tion the City shall have made available funds sufficient to pay such bonds and accrued interest thereon to the redemption date, plus the specified premiums, if any, the same shall cease to bear interest from and after the date so fixed for redemption. SECTION S: Interest. That said bonds shall bear inter- est from date to maturity at the rate of FOUR AND ONE HALF PER CENTUM (4 -1/2 %) per annum, such interest to be payable on January 15, 1966, and semi - annually thereafter on July 15 and January 15 in each year. SECTION 9: Form of Bonds. The form of said bonds shall be substantially as follows: No. UNITED STATES OF AMERICA $5,000 STATE OF TEXAS COUNTY OF TAR ANT CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BOND, SERIES 1965 -A The CITY OF EULESS, in the County of Tarrant, State of Texas, a municipal corporation duly incorporated under the laws of the State of Texas, FOR VALUE RECEIVED, hereby ack- nowledges itself indebted to and promises to pay out of reve- nues specified in this bond, to the bearer hereof, on the FIFTEENTH DAY OF JULY, 19_, the sum of FIVE THOUSAND DOLLARS ($5,000), in lawful money of the United States of America, with interest thereon from the date hereof to maturity at the rate of FOUR AND ONE HALF PER CENTUM (4 -1/2 %) per annum, pay - able on January 15, 1906, and semi- annually thereafter on July 15 and January 15 in each year, such interest falling due on or :prior to maturity hereof being payable only upon presenta- ticn and surrender of the interest coupons hereto attached as they severally become due. BOTH PRINCIPAL AND INTEREST of this bor.:1 are payable at M1,KERS TRUST COMPANY, New York, New York, without exchange or collection charges to th:e owner or holder, and the City of Euless, Texas, is hereby held and firmly bound to apply the pledged appropriated -revenues of its combined Waterworks and Sanitary Sewer System to the prompt payment of interest on this bond as it falls due and the principal thereof at its maturity, and to pay the principal and interest as they mature. 10. THIS BOND is one of a Series of Four Hundred Forty (440) serial bonds, all of like tenor and effect except as to number, interest rate, right of prior redemption and maturity, numbered from One (1) to Four Hundred Forty (440), in denomination of FIVE THOUSAND DOLLARS ($5,000) each, aggregating TWO MILLION TWC HUNDRED THOUSAND DOLLARS ($2,200,000), issued by the City of Euless for the purpose of providing funds for acquiring a combined waterworks and sanitary sewer system for the.City of Euless, all pursuant to the Constitution and laws of the State of Texas, particularly Articles 1111, et seq., and 2368a, V.A.T.C.S., as amended, and an ordinance duly passed by the City Council of the City of Euless, duly recorded in the Minutes of said Council. The date of this bond, in conformity with the ordinance above mentioned, is JULY 15, 1965. AS PROVIDED in the said ordinance, the City reserves the right to redeem the bonds of this Series, in whole or in part, on January 15, 1966, or on any interest payment date thereafter, at the price of par and accrued interest to the date fixed for redemption, plus premiums as follows: FOUR PER CENTUM (4 %) of the par value thereof if redeemed on January 15, 1966, or on any interest payment date thereafter, to and including January 15, 1973; THREE PER CENTUM (3 %) of the par value thereof if redeemed on July 15, 1973, or on any interest pay- ment date thereafter, to and including January 15, 1978; TWO PER CENTUM (2 %) of the par value thereof if redeemed on July 15, 1978, or on any interest payment date thereafter, to and including January 15, 1983; ONE PER CENTUM (1 %) of the par value thereof if redeemed on July 15, 1983, or on any inter- est payment date thereafter, to and including January 15, 1988; and on July 15, 1988, or on any interest payment date there- after, at the price of par and accrued interest to the date fixed for redemption; PROVIDED, HOWEVER, that, if less than all of said bonds are redeemed on any such interest payment dates, the same shall be redeemed in direct numerical order, and PROVIDED, FURTHER, that at least thirty (30) days prior to any interest payment date upon which any of said bonds are to be redeemed, notice of -redemption, signed by the City Secre- tary (specifying the serial numbers and amounts to be redeemed) shall have been published once in a financial journal of gener- al circulation published in the City of New York, New York, and shall have been filed wit BANKERS TRUST COMPANY, New York, New York. Should any bond or bonds not be presented for redemption pursuant to*such notice, and if by the date so fixed for redemp- tion the City shall have made available funds sufficient to pay such bonds and accrued interest thereon to the redemption date, plus the specified premiums, if any, the same shall cease to bear interest from and after the date so fixed for redemption. THIS BOND and all bonds of its Series constitute special obligations of the City of Euless, Texas, and, together with all "CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1965" being issued concurrently herewith in the principal sum of $3,600,000, are each payable ._.s to principal and interest and equally secured by a first lien on and pledge of the revenues of the City's Waterworks and Sanitary Sewer System, after deduction of reasonable and necessary expenses of operation and maintenance. 11. The CITY, however, expressly reserves the right to issue further and additional revenue bond obligations, in all things on a parity with the bonds of this Series and of the "Series 1965" above referred to, and payable from and equally secured by a first lien on and pledge of the net revenues of the City's combined Waterworks and Sanitary Sewer System; provided, however, that any and all such further bonds may be so issued only in ac- cordance with and subject to the covenants, conditions, limita- tions and restrictions relating thereto which are set out and contained in the ordinance authorizing this Series of bonds, and to which ordinance reference is hereby made for full and complete particulars. THE HOLDER hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. EACH SUCCESSIVE holder of this bond and each successive holder of the coupons hereto attached is conclusively presumed to forego and renounce his equities in favor of subsequent hol- ders for value without notice, and to agree that this bond and each of the coupons hereto attached may be negotiated by deli- very by any person having possession thereof, however such pos- session may have been acquired, and that any holder who shall have taken this bond or any of the coupons from any person for value without notice thereby has acquired absolute title there- to, -free from all equities and claims of o- viaership of any such prior holder. The City of Euless, its officials and the paying agent hereinabove named, shall not be affected by any notice to the contrary. A!\TD IT IS HEREBY CERTIFIEDI AND RECITED, that the'issuance of this bond and the Series of which it is a part is duly author- ized by law; that all acts, conditions and things required to exist and to be done precedent to and in the issuance of this bond to render ti'le same lawful and valid have been properly done, have hap -oened and have been performed in regular and due time, form and manner as rewired by the Constitution and laws of the State of Texas, and the ordinance hereinabove mentioned; that this Series of revenue bonds does not exceed any constitutional or statutory limitations; and that provision has 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 therefor the net revenues of the Citty's combined Waterworks and Sanitary Sewer System. IN TESTIMONY WHEREOF, the City Council of the City of Euless, Texas, is accordance with the provisionsc` the "Texas Uniform Facsimile Signature of Public Officials Act" enacted by the 57t11: Legislature of Texas at its Regular Session in 1961, has caused the seal of said City to be impressed or a facsimile thereof to be printed hereon, and this bond and its appurtenant coupons to be executed with the imprinted facsimile signatures of the Mayor and City Secretary of said City, as of the 15th day of July, 1965. COUNTE=RS IG"NE, City Secretary, City of Euless Mayor, City of Euless, Texas 12. SECTION 10: Coupon Form. The form of said interest coupon shall be substantially as follows: No. ON THE FIFTEENTH DAY OF $ 19 %;(unless the bond to which this coupon pertains has been properly called for redemption in accordance with its terms) the City of Euless, a municipal corporation of the State of Texas, hereby promises to pay to bearer the amount shown here- on out of funds specified in the bond to which this coupon is attached, and in lawful money of the United States of Amer- ica, without exchange or collection charges to the owner or holder, at BANKERS TRUST COMPANY, New York, New York, said sum being six months' interest due that day on "CITY OF Eli LESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BOND, SERIES 1965 -A," dated July 15, 1965. 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 Mayor RELATING TO BOTH SERIES OF BONDS SECTI:'N 110 dorm of Comptroller's Certificate. Sub- stantially the following form of Comptroller's certificate shall be printed on the back of each bond: OFFICE OF COMPTROLLER REGISTER NO. STATE OF TEXAS I HEREBY CERTIFY that there is on file and of record in my office a certificate of the Attorney General of the State of Texas, to the effect that this bond has been examin- ed by him as required by law, and that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas, and that it is a valid and binding spec- ial obligation of the City of Euless, Texas, payable from the revenues pledged to its payment by and in the ordinance authorizing same, and said bond has this day been registered by me. WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas, Comptroller of Public Accounts of the State of Texas *NOTE TO PRINTER: The expression in parenthesis is to be in- cluded only in coupons maturing July 15, 1966 and subsequent. i 13. SECTION 12: Place of Payment. Both principal and in- terest of the bonds herein authorized shall be payable in lawful money of the United States of America, without exchange or collection charges to the onwer or holder, at BANKERS TRUST COMPANY, New York, New York, upon presentation and surrender of bonds or proper coupons. SECTION 12a: Execution of Bonds and Coupons - Approval by Attorney General - Registration by Comptroller of Public Accounts. The seal of said City may be impressed upon each of said bonds or, in the alternative a facsimile of such seal may be printed upon the said bonds. The bonds and interest coupons appurtenant thereto may be-executed by the imprinted facsimile signatures of the Mayor and City Secretary of the City, and execution in such manner shall have the same effect as if such bonds and coupons had been signed by the Mayor and City Secretary in person by their manual signatures. Inas- much as such bonds are reauired to be registered by the Comp- troller of Public Accounts for the State of Texas, only his signature (or that of a deputy designated in writing to act for the Comptroller) shall be required to be manually sub- scribed to such bonds in connection with his registration cer- tificate to appear thereon, as hereinafter provided; all in accordance with the provisions of the "Texas Uniform Facsimile Signature of Public Officials Act" enacted by the 57th Legis- lature of Texas at its Regular Session in 1961. After the bonds have been executed by the City officials as hereinabove provided, they shall be presented to the Attorney General of the State of Texas for examination and approval. Upon appro- val by the Attorney General, said bonds shall be registered by the Comptroller of Public Accounts of the State of Texas. SECTION 13: Definitions. For all purposes of this ordinance, and in particular for clarity with -respect to the issuance of the bonds herein described, and the pledge and appropriation of revenues therefor, the following defini- tions are provided: (a) The term "System" shall mean the City's com- bined Waterworks and Sanitary Sewer System acquired with the proceeds of the bonds herein authorized to be issued, including all future additions, extensions, replacements and improvements in anywise pertaining thereto, whether situated within or without the lim- its of the City. (b) The term "net revenues" shall mean the gross revenues of the System, less the expenses of opera- tion and maintenance, including all salaries, labor, materials, repairs and extensions necessary to ren- der efficient service; provided, however, that in determining net revenues, only such repairs and ex- tensions as in the judgment of the City Council, reasonably and fairly exercised, are necessary to 14. keep the System in operation and render ade- quate service to the areas served thereby and the inhabitants thereof, or such as might be necessary to remedy some physical defect which would otherwise impair the security of the bonds authorized by this ordinance, or additional par- ity bonds permitted to be issued under Section 22 hereof, shall be deducted. (c) Unless separately identified, the term "bonds" shall mean collectively the $3,600,000 "Series 1965" bonds and the $2,2001000 "Series 1965 -A" bonds herein authorized to be concur- rently issued. (d) The term "additional parity bonds,' shall mean those bonds which the City reserves the right to issue under Section 22 hereof. (e) The term "fiscal year" shall mean the 12 -month period beginning October 1 and end- ing September 30 of the succeeding year. (f) The term "Bond Fund" shall mean the interest and sinking fund hereinafter pro- vided and established for the combined "Series 1965" and "Series 1965 -A" bonds herein authorized. SECTION 14: Pledge. The City covenants that all of the net revenues of the System are irrevocably pledged equally for the payment of principal and interest of the bonds herein authorized and additional parity bonds, and interest thereon, if issued under the conditions and in the manner specified in this ordinance, such bonds to consti- tute a first lien upon said net revenues. SECTION 15: System Fund. All revenues of every nature received through the ownership and operation of the System shall constitute a separate fund and shall be de- posited from time to tine as collected into the System Fund hereby established. This Fund shall not be diverted or drawn upon for any purpose other than that relating to the System and its indebtedness, so long as the bonds or additional parity bonds, or interest thereon, are outstand- ing and unpaid, except as permitted under subparagraph 5 of Section 16 hereof relating to surplus revenues. SECTION 16: Flow of System Fund - Special Funds Established. All moneys paid over and deposited into the 15. System Fund under the provisions of Section 15 hereof, are hereby pledged and appropriated, in the order of their list- ed precedence, to Funds hereby created and established, as follows: 1. System Operation and Maintenance Fund. This Fund to be used for the payment of those necessary and reasonable expenses of operating and maintaining the System, as set forth in subparagraph (b) of Section 13 hereof relating to definition of net revenues. 2. Bond Fund. This Fund to be used for no purpose other than for the payment, redemption and retirement of the bonds and the interest thereon, in accordance with the pro - visions of this ordinance. All sums received from the pur- chasers of the bonds as accrued interest thereon to the date of delivery shall be placed into this Fund. All proceeds of the bonds herein authorized, which may not be required in the acquisition and establishment of the Waterworks and Sani- tary Sewer System and its transition to municipal ownership, shall also be placed into the Bond Fund reducing by such amounts the sums otherwise required to be placed into the Bond Fund from the System Fund. Beginning on the 10th day of September, 1965, and on the 10th day of each and every month thereafter, to and including January 10, 1966, the City shall transfer from the System Fund into the Bond Fund an amount of money equal to not less than'one -fifth (1/5) of the installment of inter- est to become due on January 15, 1966. Beginning on the 10th day of January, 1966, and on the 10th day of each and every month thereafter, to and including July 10, 1972, the City shah transfer from the System Fund into the Bond Fund an amount of moray equal to not less than one -sixth (1/6) of the amount required to meet the next semi- annual installment �i of interest. Beginning on August 10, 1972, aid on the 10th day of each and every month thereafter until the bonds herein authorized are fully paid and retired, the City shall trans- fer from the System Fund into the Bond Fund an amount of " money equal to not less than one -sixth (1/6) of the amount required to meet the next semi - annual installment of interest and one - twelfth (1/12) of the next annual principal maturity. 3. Emergency Fund. This Fund to be used, upon proper order of the City Council, to pay any special or extraordinary repairs or replacements to the System necessitated by the oc- currence c-f an emergency and for the payment of which no other funds.ar,� available. Beginning on or before September 10, 1965, ar.6 on or before the 10th day of each and every month thereafter, there shall be placed into such Emergency Fund the sum of $1,000, until such Fund shall equal the sum of 16. at least $100,000. Should the Bond Fund and /or the Bond Reserve Fund for any reason prove deficient, then the Emer- gency Fund shall be used for the purpose of meeting either principal and /or interest requirements of the bonds herein authorized in order to prevent default in the payment thereof, and in such event the City covenants and agrees that it will promptly make the necessary transfers from said Emergency Fund into the Bond Fund. When any amounts are paid out of the Emergency Fund, repayments into said Fund shall be resumed and continued from the first revenues of the System thereafter available and not required for maintenance and operation or for the Bond Fund until such time as said Emergency Fund has been restored to the total amount herein provided. 4. Bond Reserve Fund. This Fund to be used to pay the principal of and interest on the bonds falling due at any time when there is not sufficient money available in the Bond Fund. No payments need be made into the Bond Reserve Fund after there has been accumulated in said Fund tre maximum herein prescribed, except that, whenever said Bond Reserve Fund is reduced below the amounts so specified, payments into said Fund shall be re- sumed and continued until it has been restored to an amount equal to the average annual principal and interest requirements of the bonds herein authorized, as herein set forth. Beginning September 10, 1965, and on the 10th day of each and every month thereafter, to and including July 10, 1968, there shall be de- posited into the Bond Reserve Fund the sum of $1,500; and be- ginning on the 10th day o--L= August, 1968 and on the 10th day of each and every month t�­ereafter, tl'tere shall be deposited in the Bond Reserve Fund the sum of $5,500 until such time as the bal- ance on hand in said Bond_eserve Fund shall be equal in amount to the average principal and interest requirements of the bonds herein authorized whicz are teen outstanding. It is the City's purpose and intent to continuously maintain said Bond Reserve Fund in the amounts herein provided until all of the bonds here - in authorized and all interest pertaining thereto have been fully paid and discharged, or until such time as the amount in said Bond Reserve Fund when added to the amount in the Bond Fund shall be fully sufficient to pay and discharge all of said bonds and all interest pertaining thereto at maturity. In the event of an early redemption of any portion of the bonds herein author - ized prior to the time the full Bond Reserve Fund requirements have been accumulated in accordance herewith, the monthly de- posits into said Fund as above provided may be reduced in the same ratio that the amount bonds so redeemed and discharged shall bear to the total amount of the bonds herein authorized and the Bond Reserve Fund requirements also reduced to an amount equal to the average annual interest and principal requirements of the bonds than remaining outstanding. If in any month the City shall for any reason fail to pay into the Bo-� ,Ld Fund and the Bond Reserve Fund the full amounts herein stipulated, amounts equivalent to such deficiency shall be set aside and apart and paid into said Funds from the first available revenues of the following month or months, and such payments small be in addition to the amounts hereinabove other - wise provided to be paid into such Funds during such month or months. f 17. 5. Surplus_R_evenues. Any surplus revenues of the System remaining after all requirements of the preceding subparagraphs of this Section 16 have been met, and like requirements contain - ed in ordinances relating to additional parity bonds herein au- thorized have been sati3fied, and after all deficiencies exist - ing in such requirements have been remedied, may be transferred and used for any lawful general or special purpose, as permitted by the terms of Article 1113a, V.A.T.C.S., including the use thereof either for the retirement in advance of maturity of the bonds herein authorized, according to the provisions made for their prior redemption, or for the purchase of bonds on the open market at not exceeding the market value thereof. Nothing herein, however, shall be construed as impairing the right of the City to pay, in accordance with the provisions thereof, any junior lien bonds legally issued by it and payable out of the net revenues of the system. SECTION 17: Adjustment of Bond_ Reserve Fund - Transfers of Excess into Bond Fund. The City shall have the privilege of recomputing and adjusting the Bond Reserve Fund requirements to the amount of the average principal and interest requirements of all revenue bonds herein refereed to at any time outstanding, and such adjustment is particularly anticipated at such time as bonds may be redeemed and retired prior to their stated matur- ity. Any amounts in the :Bond Reserve Fund which shall exceed those then required may be transferred to the Bond Fund. All moneys of the Bond Reserve Fund a-ad the Emergency Fund which may be realized from the investment thereof as hereinafter pro- vided, which exceed tI-.e anour.ts required to be maintained in such respective Funds, may likewise be transferred into the Bond Fund. In the event of any such transfer the amount thereof may be credited against the current monthly deposits hereinabove provided to be made into the Bo-zd Fund under Section. 16 hereof. SECTT\ 18: Custodin of Funds. The Custodians of the Funds hereinabove established shall be as follows: (a) The City's official depository bank shall be the Cus- todian of the System Fund and the Emergency Fund. 'D) The Custodian and Trustee of the Bond Fund and the Bond Reserve Fund shall be BANKERS TRUST COMPANY, New York, New York, and all deposits herein provided shall be placed in the Bond Fund and Bond Reserve Fund with said Custodian and Trustee. SECTION 19: Investments. The Bond Reserve Fund and the Emergency Fund may be invested as follows: (a) The Bond Reserve Fund in direct obligations of or obligations unconditionally guaranteed by the United States of America having maturities not in excess of ten (10) years from the making of such investment as the City Council may direct. Such obligations sizall be held by the Trustee bank, and if at any -i.ae unin- vested funds shall be insufficient to permit -payment of principal and interest at maturity of the bonds herein authorized, as heretofore directed, the Cus- todian a-id Trustee shall sell on the ope_, market such amount of the securities as is recuired to pay such 18. bonds and interest thereon when due and shall give notice thereof to the City Manager. (b) The Emergency Fund in direct obligations of or obligations unconditionally guaranteed by the United States of America having maturities not in excess of five (5) years from the making of such investment as the City Council may direct. Such investment securities shall be held by the Custodian bank and if at any time it becomes necessary to liquidate same to provide sums for any purpose for which such Fund is created (as stated in paragraph 3 of Section 16 hereof) the City shall notify the Custodian who shall promptly sell on the open market such amount thereof as may be required, making the proceeds immediately available. Should the purpose be for meeting bond requirements the City agrees promptly to accomplish the required transfers to the paying agent bank. SECTION 20: Security of Funds. All Funds created by this ordinance shall be secured in the manner and to the fullest ex- tent permitted by the laws of the State of Texas for the secur- ity of public funds, and such Funds shall be used for and only for the purposes designated in this ordinance. All sums of money deposited in the Bond Fund and Bond Reserve Fund shall be held as a Trust Fund for the holders of the bonds herein authorized, the beneficial interest of which shall be regarded as existing in such holders. To the extent that the moneys in the Bond Reserve Fund and Emergency Fund are invested under the provisions of Section 19 hereof, such security is not required. SECTIC_' 21: Rates and Charges. The City covenants and agrees with the 'nolLers of the bonds herein authorized, and additional parity bonds, if authorized pursuant to the terms hereof, that it oil! at all times charge and collect for ser- vices rendered by the System rates and charges sufficient to pay all operating, maintenance, depreciation, replacement and betterment and all other costs deductible in determining net revenues as herein defined, also to pay the principal and inter - est of the bonds and to establish and maintain Funds as herein established and provided. Further, if additional parity bonds are issued, or if the System should become liable for any other indebtedness, the City shall maintain rates and fix charges for the services of the System sufficient to discharge such obliga- tions also. SECTION 22: Issuance of Additional Parity fonds. In addition to the -right to issue bonds of inferior lien as author - ized by the laws of the State of Texas, the City reserves the right to hereafter issue additional parity bonds, As above stated, the bonds directed by this ordinance to be issued are called "bonds" and bonds hereafter issued on a parry therewith are called "additional bonds.10 The additional bonds when issued shall be secured by and payable from a first lien on and 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 be in all respects of equal dig- nity. The additional bonds vay be issued in one or more install- ments, provided, however, that none shall be issued unless and until the following conditions have been met: 19. j (a) The City is not then in default as to any covenant, condition or obligation prescribed by this ordinance; (b) The applicable laws of the State of Texas in force at such time and whic-Z! provide permission and authority for the issuance of such bends have been fully complied with; (c) That each of the Funds created by this ordinance contains the amount of money then required to be on deposit therein; (d) The net revenues of the System for the twelve - month period preceding the month of the adoption of such or- dinance, as shown by a report of a certified public account- ant or licensed public accountant are equal to at least one and one fourth (1 -1/4) times the average annual principal and interest requirements of all bonds which will.be secured by a first lien on and pledge of the net revenues of the System, and which will be outstanding uDo-n the issuance of additional par - ity bonds. The term "::et revenues" as used in this Section 21 shall mean the gross revenues after deducting-the expenses of operation and maintenance but not deducting expenditures which, under standard accounting procedures, should be charged to capital expenditures; (e) The additional bonus are made to mature on July 15 of each of the years in which they are scheduled to mature; and (f) The o di_ a -.ce authorizing the issuance of such addi- tional bonds proviLas that the amount to be accumulated and maintained in the bond Reserve Fund for such bonds shall be as amount not less than the average annual principal and in- terest requirements of such bonds, such additional amount to be maintained Ln said Fund to be accumulated within not more than five (5) years and one (1) month from the date of the passage of the ordinance authorizing the issuance of the proposed additional bonds. SECTION 23: Milain =-enance and Operation - Insurance. The City shall maintain the System in good condition and oper- ate the same in a-n efficient manner and at reasonable cost. So long as any of the bonds are outstanding, the City agrees to maintain insurance for the benefit of the holder or holders of the bonds of a kind and in an amount which usually would be carried by private companies engaged in a similar type of business. Nothing in this ordinar_ca shall be construed as recu-f-ring the City to expend any funds which are derived from sources other than tha operation of thL System, but nothing herein shall be construed as preventing the City from doing SO. SECTION 24: Records - Accounts - _Accou___tin_g_ Raports . The City of Eu" -ass hereby covenants and agrees _ a-t, so long as any of the Ionds herein authorized or any in" rest thereon remain outstanding and unpaid, it will keep and maintain a 20. i proper and complete system of records and accounts pertain- ing to the operation of its combined Waterworks and Sanitary Sewer System separate and apart from all other records and accounts, in which complete and correct entries shall be made of all transactions relating to said System, as provided by Article lli3, ievised Civil Statutes of Texas, 1925, as amend - eL, and that the holder or holders of any of the bonds or any duly authorized agent or agents of such holders shall have the rig-Olt at all reasonable times to inspect all such records, accounts and data relating thereto, and to inspect the System and all properties comprising same. The City further agrees that, within sixty (60) days following the close of each fis- cal year, it will cause an audit of such books and accounts to be made by an independent firm of certified public accountants or licensed public accountants showing the receipts and dis- bursements on account of the System for the fiscal year. Each such audit, in addition to whatever other matters may be thought proper by the accountant, shall particularly include the following: (a) A detailed statement of the income and expenditures of the System for such fiscal year; (b) A balance sheet as of the end of such fiscal year; (c) The accou_tar ::'s comments regarding the manner in which the City has carried out the -requirements of this ordi- nance and his _eco^me-.:dation s -for any changes or improvements in the operation, records and accounts of the System; (d) A list of the insurance policies in force at the end of the fiscal year on the System properties, setting out as to each policy the a:,o-.. -nt thereof, the risk covered, the name of the lnsurar, aid the policy's expiration date; (e) A list of the securities in which the Bond Reserve Fund and the Emergency Fund have been invested, and a state - ment of the manner in which money in the System Fund has been 1� secured in such fiscal year; (f) The number of properties connected with the Water System and the number connected with the Sewer System; (g) The number of connections actually billed in the last month of the fiscal year; and (h) A statement of the quantity of waiver sold in the fiscal year. i Expenses incurred in -_ra.%ing the audits above referred to are intenance Lnd operation expenses and paid to be regarded as ma as such. Copies of the aforesaid annual audit shall be imine- c.lazely furnished to the Executive Direc�­_or of the Municipal Advisory Council of Texas at his office in Austin, Texas, and to t1ae original purchasers of the bonds a{ iy subsequent holder at his request. At the close of the first six months' period of each fiscal year, the City Secretary is hereby di- rected to furnish a copy of the operating a.d income statement in reasonable d�. _-ail covering such period to any bondholder upon his request therefor received not more than thirty (30) 21. da,Ts after the close of said six months' period. Any bond - h3ider shall have the right to discuss with the accountant making the annual audit the contents thereof and to ask for such additional information as he may reasonably require. -701,' 25: em_dies in Event of Default. In addi- ti c _7 to all the rights and remedies provided by laws of the State of Texas; the City covenants and agrees particularly that, in the event the City (a) defaults in payments to be made to tae Bond Fund and,eserve Fund as required by this ordinance, or (b) defaults ir. th.e observance or performance Of any other of the covenants, conditions or obligations set forth in this ordinance, the -following remedies shall be available: (l} The holder or holders of any of the bonds shall be e_titled to a writ of mandamus issued by a court of pro - per jurisdiction compelling and requiring the City Council and other off.�cers of the City to observe a--ad perform any covenant, condition or obligation prescribed in the bond ordinance. (2) 1`o delay or - 2 ssi3_-- 't;; e _erci se any right or power accruag upon Gny de -fa� ha "_- i ly i any such right or pow - er, or s= all be co _- w o ;c _ wa vesi_ of any such default or acquiescense t :�rci ald :ave�y s..c:. right and power may be exercised J'-ro:s tir:e to rime and as often as may be deemed expLdie .z . Tile speci -f -c r: aed cs I1er in provided shall be cumulative Of all o' 1e4r ex2 stin- re edies and the specification of such remedies s'--.L-11 riot be deemed to be ex::lusive. S 7�.,TTG -,I 26: Spec-_al Covenants. The City hereby fur - ther c c-v en nts as fol.1oG,s: (a) --,at it '.gas the la afal power to pledge the revenues support= Z _is issue of bo ids and hs.s laWfully exercised said under -Cho Co -= itutil i w_:d laws c` the State of 'Texas; i _cludi said pc;:er ex-sti g c�er Articles 1111 to 118, boll: = n. :Iusivc., revised Civi= Statutes of Texas, 1925 with �_�.nc:�-:e_ -_ts thereto; tha � t _e Do:_cs issued hereunder and the a;'`tio-_R1 bonds, wivn issue`, s_a1T be ratably secured under s id pledge o-f income in such :�a __r ­-at one bond shall ._ave no prererence over any other bc_:d of said issues; `b) That, other ii = ^_n fo-r ,e 'nor the bonds herei authorized, the rents, and income of the Sys - ea-: have not in any ma._ =c -r been :�I c.goa to payment of any debt of obligatio« of t1fte City or of the Sy sem; (c) T'j-:at, so long as any of said bo__c rama.i__ out-stand- Y_` ., Lhz� City gall not sell or enc;Yoer Sys'cemr any sub - SLa ttial portion thereof, a, %-flat, C� i' _ll _� exce'U'_ on of the additional parity 'bonds expressly perm it-ted by t__-�, ordinance t.c be issued, it will ne : ercuimber ti-le reve-nues t._ereof ur1less such enc=brance is made ju.r;or and s�Dordinate to all o,: _..e provisions of this ordi- naace; provided, However, that the -ity 22. may dispose of any portions of the System which are located within the corporate limits of other municipalities under the following conditions: (1) That t e proceeds of any such sale shall be deposited in the Bond Fund and, as promptly as possible:, applied to the timely prior redemption of the Series 1965 -A bonds in accord with their terms. (ii) Thai such sale shall be authorized in a manner conforming with the applicable laws of the State of Texas then existing. (iii) That an independent registered professional engin- eer of the State of Texas retained and paid by the City and approved by the underwriters (the original purchasers of the bonds), shall certify, in his opinion, that such sale will not impair the effi- cient operation of the unsold portion of the Sys- tem and that the annual net revenues of said re- maining System will not be less than one and one fourth (1 -1/4) times the annual principal and in- terest requirements of all parity -revenue bonds to be ou sta..ding throughout the period during which said remaining bonds are scheduled to be outstanding after giving effect to such sale and prior bond redemption. (iv) Teat, as ravealed by a report prepared by an in- dependent certified public accountant covering the period of twelve (12) consecutive months end d nct more tLan ninety (90) days prior to said sale, the net revenues of the said unsold portion of the System shall have been not less than one a-.-.d one fourth (1 -1/4) times the aver - age annual principal and interest requirements of t <<e amcunt o= parity revenue bonds to be out- standing after giving effect to the application o t1_e sale proceeds to the retirement of bonds as provided for in paragraph (i) above. In the event thaLz arty such disposition of properties shall occur prior to the completion of a 12- month period of operation by tae City of Euless, the net revenues for a 12 -month ne.riod shall be determined as f,.;` ows : the report of the certi- fied -public accountant shall set out f.or each completed month of actual operation, (1) gross revenues from water and sewer sales, (2) gross revenues from c-he-r sources, (3) oporati_g and mGi ,tor.ance expenses, (4) net revenues ( ) num- ber of water connections billed, and (6) number of sewer connectio<s billed. From this data, t:_ accountant shall determine the average mcnt',_ -_y net revenues and shall multiply by 12, ti -_r_:sulting figure being that which must be n0z less than one and one fourth (1 -1/4 times th aforesaid average annual principal and i-4--erest requirement of the amount of bonds then --o remain outstanding. 23. (v) In the event proceeds from the sale of such properties exceed the amount required for prior red mption of the entire Series 1965 -A portion of the bonds, the excess shall be de- posited in the following funds in the order "^ecited: Emergen2y Funs - Such amount, if any, needed to complete the accumulation of the final amount required to be on deposit therein. Reserve Fund - Such amount as may be needed to.complete the accumulation of an amount equal to the average annual principal and interest requirements of the revenue bonds to remain. outstanding. Dond fund - applicable to the Series 1965 revenue bonds. (d) That no free service of the System shall be allowed, and should the City or any of its agents or instrumentalities make use of the services and facilities of the System, payment of the reasonable value thereof shall be made by the City out of funds from sources other than the revenues and income of the System; (e) To the cxte:,t t:Lat it legally may, the City coven- ants and agrees, for tea - _)rotection and security of the bonds and the holders thereof, that it will not grant a franchise for the operation of any competing waterworks or sewer system within the City until all bo-nCs issued pursuant to this ordi- nance shall have been retired;; ( -) The City agrees that, within a period of sixty (60) days following the accuisition of the System, a complete set of operating rules and regulations will be prepared with the advice and counsel of an L:Idependent registerec professional engineer of the State of Texas, known for skill and experience in waterworks and sewer system construction and operation, and shall be adopted to govern the operation of the Euless System; (gj All extensions and improvements to the System shall be constructed to stancards established by the City, and shall be subject to the approval of a qualified registered profession- al ergireer of the S�atc cf Texas "retain.ed or employed by the City, wino shall approve. aad supervise the installation thereof. SECTION 27: 'Onds aye S _-ecial Obligations. The bonds are special oblic'L -40r:s of the City payable from the pledged revenues, and the ho1,-e-._s thereof shall never have tae right to demand payment out of funds raised or to be raised by taxation. SECTiuN 28: Legal Opinion on Bonds. The obliga- tion of the purchasers to accept delivery of the bonds herein authorized is s D ect to their being furnished 'a final opinion of Messrs. Duras,uguenin and Boothman, Attorneys, Dallas, i a 24. r Texas, approving such bonds as to their vu:-idity, said Opinion to be dated and delivered as of the date of deli- very and payment for such bonds. Printing of a true and correct copy of said opinion on the reverse side of each of said bonds wit'z ap?ropriate certificate pertaining thereto executed by facsimile s_gnature of the City Secretary here- by approved and authorized. S.1-1TTON 0: mayor to Have Charge of Records and Bonds. The Mayor of the City of Euless shall be and he is hereby authorized to take and have charge of all necessary orders and records pending inves_l_gation by the Attorney General of the State of Texas, and shall take and have charge and control of the bones herein authorized pending their approval by the Attorney General and their registration by the Comptroller of Public Accounts, and it shall be the duty of the Mayor (or the Attorneys acting for the City) to submit the record of the bonds to the Attorney General of the State of Texas for appr- val and thereafter to have the bonds registered by the Comp- troller of Public Accounts of the State of Texas. SECT_ICN 30: Cc :f__-r.-.^t_o _ of Sale. The sale of the bonds herein authorized to L� � ER, C�JE IILN & TU�;NER, INC. , Dallas, Texas, and ASSOCL -_TES, a the price of par and accrued inter- est to the date of delivery, is hereby confirmed, and delivery of the bonds shay i be r:. u` to said purchasers as soon as may be after p ayr,,ent thereof in accordance with the terms of sale. SECTTON 31: ' -'.e fact teat it is to the best interests of the acquisition of - the GzL �LG prcvi::e funds for a Watercaor%s and SF:-.itary Sewer System at the earliest possible date for t %e -i ate preservation of the public peace, health 7 " aad safety, co-:stitu`-�s a:Za crates an emergency and an urgent public _nece3si-y, Pay rule rroviding for ordi- nances to be read and voted "upon at more than one meeting of the City Counci- b:. suspendeL, and requiring that this ordi- nance be passed and taco effec as an emergency measure, and such rules anal provisic- %s are accordingly suspended, and this ordinance -is passed as an emergency measure, and shall take and have effect and be -.gin full force from and after its passage. PASSED AND APPROVED, this the 29th day of July, 1965. /s/ W.—G.-Fuller A T E S T Mayor, City of Euless, Texas /s/ Vada Ferris City Secretary, City of Euless Texas (City Seal) APPROVED: /s/ James A. Cribbs City Attorney, City of Euless Texas 25. CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS CITY OF EULESS COUNTY OF TARRANT I, the undersigned, City Secretary of the City of Euless, Texas, DO HEREBY CERTIFY: That the above and foregoing is a true and correct copy of an ordinance authorizing $3,600,000 "CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1965" and $2,200,000 "CITY OF EULESS, TEXAS, WATER- WORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1965 -A," passed at a Special Session of the City Council of said City on the 29th day of July, 1965, and of record in Book 4 of the Minutes of the City Council. IN WITNESS WHEREOF, I have hereunto signed my name officially and affixed the seal of the CITY OF EULESS, Texas, this the 29th day of July, 1965. City Secretary, City of Euless Texas (City Seal) i i f NOTICE OF CITY OF EULESS'S INTENTION TO PURCHASE, CONSTRUCT AND /OR OTHERWISE ACQUIRE A WATERWORKS AND SANITARY SEWER SYSTEM AND TO ISSUE WATERWORKS AND SEWER SYSTEM REVENUE BONDS TO PROVIDE FUNDS THEREFOR NOTICE IS HEREBY GIVEN, that the City Council of the City of Euless, Texas, will meet on the 29th day of July, 1965, at 7:00 o'clock A.M. at its regular meeting place in the City Hall) Euless, Texas, to pass such ordinances, take such action and incur such expenses as may be deemed reasonable and neces- sary in purchasing, constructing, and /or otherwise acquiring a waterworks and sanitary sewer system, including sanitary dis- posal equipment and appliances. THE CITY COUNCIL intends to provide funds therefor by the authorization, issuance, sale and delivery of "CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS," in an amount not exceeding SIX MILLION DOLLARS ($6,000,000) (being not to exceed THREE MILLION FIVE HUNDRED THOUSAND DOLLARS ($3,500,000) for waterworks purposes, and not to exceed TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000) for sewer purposes), bearing interest at a rate not to exceed SIX PER CENTUM (6 %) per annum, and maturing serially not to exceed FORTY (40) years from their date. SAID BONDS are to be special obligations of the City, pay- able as to both principal and interest from and secured by a first lien on and pledge of the net revenues of the combined waterworks and sanitary sewer system acquired with the proceeds thereof, shall not be a debt of the City of Euless, and each of such bonds shall contain the following provision: "The holder hereof shall never have the right to demand payment of this obligation out of funds raised or to be raised by taxation." WITNESS MY HAND and the seal of the CITY OF EULESS, TEXAS, this the 13th day of July, 1965. Mayor, City of Euless, Texas (City Seal) 2. That such notice is to be published in a newspaper of general circulation, published in the City of Euless, Texas once a week for two (2) consecutive weeks, the date of the first publication to be at least fourteen (14) days prior to the date set for passage of the ordinance authorizing the issuance of the bonds referred to in such notice. 3. That further action be reserved until the 29th day of July, 1965, the date set for the passage of said ordinance. PASSED AND APPROVED, this the 13th day of July, 1965. /s/ W. G. Fuller Mayor, City of Euless, Texas A T T E S T: /s/ Vada Ferris City Secretary, City of Euless Texas (City Seal) AFFIDAVIT OF PUBLICATION THE STATE OF TEXAS COUNTY OF TA RANT BEFORE ME, the undersigned authority, on this day per s--ally appeared Ted Rickenbacher who, being by me duly sworn deposes and says: That he is z'_-,,e Ed 1 for of THE EULESS which is a newspaper of Saneral circuia ion in the City of Euless, publi0ad in Tan=nz Coonzy, Texas, and that he publishad a true copy of Zhe "NOTICE OF CITY OF EUL ASS 'S =EnTl= C3 PUaCEASE, CON- ST&.UCT AKD/Oa 01=0SE L 7.'" TE"_E00=,S AZD SANITARY S=1 SYS= = TO 1SSUE WATER- WORKS AND S Ea S=EM ==E 1121S TO PRO- VIDE FUNDS THER"13L," 1=azo attachad, Ln said newspaper an he following dates: Ouly 15, 1565, and Guly 22, 1955, the date of the fLrot nulLication being not less than fourteen (14) full days y=ior to the date set for passage of the ordL=ance authorizing che issuance of the bonds re- ferred to therein. ...... ...... - 42'� SWO-1::!,-. TO AND SUBSCRIZED before me, this the 27th day of July, 10-5. Notary Publia347arrant7lynty Texas (Notarial Sea!) zM :off �to y`�a t oH wm ^ocn;dt-r W I n = A.cc w w mbp w l--o O MOO 0 aXZ= ~'^ oC. c.Q�oo -tr aQ. or 9 Zv��H��tn�Hm CM to MI -30Co cnbqo woo 2�C�G"��9 ncn , 64 m 0`< :C OM � ta led - E r. - It n RESOLUTION AUTHORIZING ISSUANCE OF NOTICE OF THE CITY OF EULESS'S INTENTION TO PURCHASE, CONSTRUCT AND /OR OTHERWISE ACQUIRE A WATERWORKS AND SANITARY SEWER SYSTEM, AND TO ,ISSUE WATERWORKS AND SEWER SYSTEM REVENUE BONDS TO PROVIDE FUNDS THEREFOR THE STATE OF TEXAS CITY OF EULESS COUNTY OF TAR.RANT ON THIS, the 13th day of July, 1965, the City Council of the City of Euless, Texas, convened in Regular session at the regular meeting place thereof in the City Hall, there being present and in attendance the following members, to wit: W. G. FULLER BILL L. BYERS FRANK E. DOUGLASS BOBBY R. FULLER HAROLD D. SAMUELS De --R:--,=WARREN and ( MRS.) VADA FERRIS MAYOR Councilmen. City Secretary also being present; and with the following absent: DON R. WARREN constituting a quorum; at which time the following, among other business, was trans- acted: MAYOR FULLER introduced a resolution which was read in full. Councilman Douglassmoved its adoption. The motion was seconded by Councilman Samuels and carried by the fol- lowing vote: AYES: Councilmen Byers Douglass, Fuller, Samuels �+ -zzzr NAYS: None 9 r, The RESOLUTION is as follows: is "A RESOLUTION by the City Council of the City of Euless, Texas, authorizing the Mayor to publish notice of the City's intention to purchase, construct and /or other - wise acquire a waterworks and sanitary sewer system, and to issue, sell and deliver waterworks and sewer system revenue bonds to provide funds therefor" WHEREAS, this City Council has determined and now finds it to the best interest of the City of Euless to acquire and own a municipal waterworks and sanitary sewer system to serve the City and its environs; and WHEREAS, this Council has further determined that the ac- quisition of such properties should be financed by the issuance, sale and delivery of special bond obligations of the City pay- able solely from and secured by a first lien on and pledge of the income of such system after deduction of reasonable and necessary expenses of operation and maintenance; and WHEREAS, it is now appropriate to give notice of the City's intention as aforementioned, pursuant to the provisions of Sec - !' tion 11, of Article 2368a and Article 1112 V.A.T.C.S., as amended; therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EULESS: 1. That the Mayor be, and he is hereby authorized to do all things necessary to accomplish publication of notice, the terms and recitations of which are hereby ratified, approved and confirmed as the judgment of this City Council and made a part of this resolution, as follows, to wit: �i ii GENERAL CERTIFICATE THE STATE OF TEXAS CITY OF EULESS X COUNTY OF TAR.RANT WE, the undersigned, MAYOR and CITY SECRETARY, respec- tively, of the City of Euless, Texas, DO HEREBY CERTIFY, as follows: '! 1. That, save and except for the pledge of the in- come and revenues of the combined Waterworks and Sanitary Sewer System now in the process of being purchased, construct - ed and /or otherwise acquired to the payment of $3,600,000 "CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1965" and $2,200,000 "CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1965 -A" the income and revenues of said System have not been pledged or hypothecated in any manner or for any other purpose, that there are no liens, encumbrances or any other indebted - ness whatsoever outstanding against the City's Waterworks and Sanitary Sewer System or the income and revenues of such System, and that the Series 1965 and Series 1965 -A bonds when issued will evidence the only lien, encumbrance or indebtedness of said System or the income and revenues therefrom. . 2., That the duly qualified and acting officers of the City are as follows: W. G. FULLER BILL L. BYERS FRANK E. DOUGLASS BOBBY R. FULLER HAROLD D. SAMUELS DON R. WARREN VADA FERRIS (MRS.) W. E. SMITH W.1visT1111 COUNCILMEN CITY SECRETARY and CITY TREASURER TAX ASSESSOR - COLLECTOR 3. That the City of Euless, Texas, is incorporated under the General Laws of the State of Texas, and is opera- ting under the Home Rule Amendment to the Constitution of the State of Texas, Section 5 of Article II as amended in 1912; that the Charter of said City was adopted originally at an election held on the 21st day of July, 1962, and has not been amended. WITNESS OUR OFFICIAL SIGNATURES and the seal of the City of Euless, Texas, this the 29th day of July, 1965. Mayor, Cit of Euless, Texas L City Secretary, City of Euless Texas (City Seal) I� a ENGINEER'S CERTIFICATE RELATIVE TO ESTIMATED REVENUES, OPERATING EXPENSES AND BOND REQUIREMENTS WITH REGARD TO CITY OF EULESS, TEXAS, WATERWORKS AND SANITARY SEWER SYSTEM THE STATE OF TEXAS COUNTY OF TARRANT I, the undersigned, of GREGORY, KNOWLTON & RATLIFF, Consulting Engineers of Fort Worth, Texas, DO HEREBY CERTIFY: 1. That I have been employed by the City of Euless, Texas, to act as Consulting Engineer in connection with purchasing, constructing and /or otherwise acquiring a waterworks and sanitary sewer system in and for said City. 2. That I have computed and estimated the revenues and operating expenses of the waterworks and sanitary sewer system to be so purchased, constructed and /or otherwise acquired with the proceeds of the $5,800,000 "CITY OF EULESS, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS," dated July 15, 1965; and that I have also computed the annual payments of principal and interest on the aforesaid bonds. 3. That, based upon rates to be charged for services furnished by the waterworks and sanitary sewer system pur- suant to the terms of a rate ordinance passed and adopted by the City Council on the 29th day of July, 1965, I CERTIFY that a conservative estimate of operating revenues and expenses, also revenue bond requirements for the years shown, are as follows, to wit: Fiscal Year NET Ending Gross Operating Operating 9 -30 REVENUES EXPENSE REVENUE INTEREST & RESERVE & Principal Emergency EXCESS Requirement Funds Revenues 1966 551,095 198,394 352,701 2973,000 25,000 30,701 1967 617,226 2223,201 3952025 297,000 30,000 68,025 1968 6781949 244,422 434,527 297,000 30,000 107,527 1969 733,265 2632975 469,290 2612000 783,000 130,290 1970 784,595 2823,454 5023141 261,000 78,000 163,141 1971 8313671 299,402 532,269 261,000 7831000 193,269 1972 881,571 3172366 5643,205 261,000 782000 2252205 1973 925,650 333,234 5921V416 331,000 12,000 2492416 1974 962,676 34631563 616,113 342,850 273,363 1975 120013-183 360,426 640,757 34431025 2961732 1976 1,0013,183 '' 360,426 640,757 339,975 3001782 1977 1,001,183 360,426 6402757 .340,925 299,832 1978 1,0012183 3603,426 640,757 341,650 299,107 1979 13-001,183 3603,426 640,757 3422150 298,607 1980 1310011183 360,426 640,757 3421425 298,332 1981 120011$183 360,426 640,757 342,475 298,282 1982 1,001,183 36031426 640,757 342,300 298,457 1983 1,001,183 360,426 640,757 341,900 298,857 1984 131001,183 360,426 640,757 3413,275 299,482 1985 1,001,183 360,426 6402757 340,425 300,332 1986 1,001,183 360,426 640,757 339,350 3012407 1987 1,0011183 3603,426 640,757 343,050 2972707 1988 13,00131183 360,426 640,757 341$00 2992,457 1989 12001,183 3603,426 640,757 339,325 3015432 11990 11001,183 360,426 640,757 3422125 298,632 1991 1,001,183 360,426 640,757 339,475 301,282 1992 1,0012183 360,426 640,757 341,600 299,157 '1993 1310011183 360,426 640,757 3383-275 302,482 1994 1,0012183 360,426 6402757 339,725 301,032 1995 12001,183 360,426 640,757 340,725 300,032 1996 1,00130183 3603,426 640,757 341,275 299,482' 1997 1,001,183 360,426 640,757 341,375 299,382 1998 1100131183 360,426 6403,757 341,025 299,732. 1999 1,001,183 360,426 640,757 340,225 300,532 2000 13-001,183 3603-426 640,757 338,975 301,782 ;2001 1,001,183 3603,426 640,757 342,275 298,482• 12002 1,001,183 360,426 640,757 339,900 300,857 !2003 1,001,183 360,426 640,757 342,075 298,682 2004 1310013183 360,426 640,757 3382575 302,182 X2005 1,001,183 3603,426 640,757 33930625 301,132 TO CERTIFY WHICH, I have hereunto set my hand, this the 29th !day of July, 1965. f ;�. PA} GRYQ- t (Seal).& 83 <<� GREGORY, KNOWLTON & RATLIFF t,r t Consulting Engineers I' I r