HomeMy WebLinkAboutResolution - 091263B - Investment In U.S. Securities Made By City Auditor Ratified - Water System Fund - 09/12/196311 BJM:djl
0 7,
RESOLUTION
► ! ( WHEREAS, as provided by Art. 836, Vernon's Annotated Civil Statutes of
Texas,; as amended by Acts of the 51st Leg, the City of Lubbock is authorized and
empowered to invest its respective sinking funds for redemption and payment of th
outstanding bonds of said City of Lubbock, in bonds of the United States; War Savii
Certificates; and certificates of indebtedness issued by the Secretary Treasury of
tt the United States; and
WHEREAS, by Ordinance Numbered 1526, 1529, 1834 and 2396, duly passe
+; and enacted by the City Commission of the City of Lubbock, there has been issued
certain Water Works System Revenue Bonds, designated in each Ordinance
respectively as the tCity of Lubbock, Texas, Water Works System Revenue Bonds,
Series 1953, t dated June 1, 1953; tCity of Lubbock, Texas, Water Works System
Revenue Bonds, Series 1954, t dated March 1, 1954; tCity of Lubbock, Texas, Wati
Works System Revenue Bonds, Series 1956, t dated March 1, 1956, and tCity of
Lubbock, Texas, Water Works System Revenue Bonds, Series 1958, dated March
1,; 1958; and
WHEREAS, in each of said Ordinances above numbered herein it was pro-
vided that an interest and sinking fund be established, including a reserve fund
to pay the obligations created therein, respectively, in the Citizens National Bank
of Lubbock, Texas, and designated said interest, sinking and reserve fund as the
"Special Water Works System Revenue Bond Retirement and Reserve Fund" and
named and made said Bank the custodian of said fund and the paying agent of the
{ Bonds described and authorized to be issued in each of said Ordinances; and
WHEREAS, the City Auditor of the City of Lubbock, in compliance with the
resolution passed by the City Commission on February 12, 1959, invested the
sinking funds designated as "Special Water Works System Revenue Bond Retiremel
and Reserve Fund of the City of Lubbock" in United States Government Securities
as authorized by law; and,
WHEREAS, in 1962 an additional investment of $225.000 from the said
Special Water Works Reserve Fund was made in United States Securities, and
WHEREAS, a portion of the United States Securities have matured, or will
hereafter mature, and the time for retirement of the Water Works System Revenu
Bonds has not yet arrived, and the City Commission has determined that the best
interest of the City of Lubbock and the security of the Retirement Fund will be
served by further investments of any additional reserve funds and re -investments
of these matured United States Securities so that the said retirement funds will be
invested in accordance with Art. 836, V,`R,C,'S,, NOW THEREFORE,
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LUBBOCK:
THAT the investment in United States Securities heretofore made in 1962
by the City Auditor in pursuance of the City Commissionts Resolution dated
.February 12, 1959 is hereby ratified and that the City Auditor is further directed
to invest any additional reserve portions of the "Special Water Works System
Revenue Bond Retirement and Reserve Funds" in United States Securities as
�( approved by law, as well as to re -invest proceeds from United States Securities
which were previously acquired and have matured, in United States Securities
as authorized by Art. 836, V,,R,.0 S ' All of these United States Securities
acquired incompliance with this Resolution are to mature prior to the time when
the. Water Works System Revenue Bonds are subject for retirement. The Citizens
National Bank, as custodian and depository of the said fund is hereby instructed
to purchase and invest the said reserve funds and proceeds from matured United
States Securities in additional United States Securities, in accordance with the
provisions of this Resolution; said purchase and investment by said Citizens
National Bank to be made as directed by written order of the City Auditor.
SECTION 2. The provisions of this Resolution shall never be construed
to change, vary or alter any provision of any ordinance to which it relates, it
being the intention of the City Commission to construe said bond ordinances
consistent with public policy and Art. 836, R.,'C,S 'T,,' providing for the invest-
ment of sinking funds which in its opinion is part of and read into said bond ordi-
nance, the provisions of which do not exclude, and were never intended to exclude,
limit or deny the City Commissionsx statutory right to invest said funds, as pro-
vided by law.
SECTION 3. THAT the City Secretary shall attest the signature of the Ma
to .said Deed and shall affix the seal of the City of Lubbock thereto.
Passed by the City Commission this 12th day of September , 196
ATTEST:
f"
La enia Lowe, City Secretary -Treasurer
+_ J N\'.�
F, STRONG, Mayor
Form Ap rov
�y ttorney