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HomeMy WebLinkAboutResolution - 010859F - City Auditor Authorized To Select U.S. Bonds And_Or Treasury Certificates - 01_08_1959 RESOLUTION x- WHEREASs the City of Lubbock by Ordinance No. 1374 entitled "An Ordinance Authorizing Issuance of $2, 045, 000. 00 =City of Lubbock, Texas, Water Works System Revenue Bonds, Series 19531 dated June 1, 1953., 11 and said Ordinance ther - in referred to provided an interest and sinking fund as requested by law, including a reserve fund to pay the obligations therein created, and established a fund in the Citizens National Bank of Lubbock,, Lubbock County, Texas, designated "Special Water Works System Revenue both Retirement and Reserve Fund,t' and said bank was designated custodian of said fund and paying agent of the bonds provided for iris,said,Ordinance; and, WHEREAS, the City of Lubbock by Ordinance No. 2396 entitled " An Ordinance Authorizing Issuance of $3, 379,, 000. 00 tCity of Lubbock, Texas, 'dater Works System Revenue Bonds, Series 1958, dated March 11 1958, 11 and said Ordinance therein referred to provided an interest and sinking fund as requested by law, including a reserve fund to pay the obligations therein created, and established fund in the Citizens National Bank of Lubbock Lubbock County, Texas, designated "Special Water Works System Revenue both Retirement and Reserve Fund, " and said bank was designated custodian of said fund and paying agent of the 'bonds pro- vided for in said Ordinance; and, WHEREAS, the City of Lubbock by Ordinance No. 1834 entitled "An`Ordinance Authorizing Issuance of $7, 300, 000. 00 City of Lubbock„ Texas, Water Works System Revenue Bonds, Series 1.9561 dated March 1, 1956,1' and said°Ordinance thee in referred to provided an interest and skining fund as requested by law, including a reserve fund to pay the obligations therein created., and established a fund in the Citizens National Bank of Lubbock, Lubbock County, Texas, designated "Special Water Works System Revenue both Retirement and Reserve Fund, '' and said bank was designated custodian of said fund and paying agent of the bonds provided for in said 'Ordinance; and, WHEREAS, the City of Lubbock by Ordinance No. 1526 entitled "An Ordinance Authorizing Issuance of $2,,045, 000. 00 'City of Lubbock, Texas, Water Works System Revenue Bonds, Series 19541 dated March 1,, 1954,:11 and said Ordinance therein referred to provided an interest and sinking fund as requested by law, including a reserve fund to pay the obligations therein cretLted, ,and established a fund in the Citizens National Bank of Lubbock, Lubbock County, Texas, designated "Special Water Works System Revenue both Retirement and Reserve Fund, " and said bank was designated custodian of said fund and paying agent of the bonds pro- vided for in said Ordinance; and, WHEREAS,, the sinking funds created in the hereinabove mentioned ordinances have all been deposited in one fund entitled-"Special Water Works System Revenue Bond Retirement and Reserve Fund,, in the Citizens National Bank of Lubbock, Lubbock County, Texas, and the City bf Lubbock, now has on deposit in said fund in said bank a substantial sum of money, and the governing body of the City of Lubbock desires to invest a part of said fund in United States Government Securitie 3, as provided in Article 836, Revised Civil Statutes of Texas, by purchasing bonds and/or certificates which, according to their terms, should mature prior to the 1 I time of maturity of the City of Lubbock Bonds, for the payment of which such sink,' ing fund was created by said ordinances,.,it being the intent of the governing body ^ the City of Lubbock, to purchase bonds of the value and to the extent of that part and interest of the sinking fund designated by said ordinances as a "reserve" NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LUBBOCK: SECTION 1. THAT the City Auditor of the City of Lubbock, BE and is hereby authorized to select bonds of the United States and/or certificates of indebtedness issued by the Secretary of the Treasury of the United States, not to exceed five year maturity, as provided by Article 836, Revised CivilZtatutes of Texas, which mature prior to the time of the maturity'of the City of Lubbock bonds for the pay- ment of which the "reserve', fund of the fund designated by Ordinances No. 1834, 1526, 1374, and 2396 as "Special Water Works System Revenue both Retirement and Reserve Fund,,' was created; that said bonds so selected to be purchased as an investment of part not in excess of the amount of the "reserve', fund balance;an that additional investments be timely made in the same manner as and when said "reserve" fund is substantially increased by additional payments and the said fund under the provisions of said ordinancep; provided, however, the investments here authorized shall be made in bonds or certificates maturing at such times that unde reasonably foreseeable conditions such securities need not be converted into cash at a loss or prior to maturity. SECTION Z. THAT the Citizens National Bank of Lubbock, Lubbock County, Texas, designated as custodian and paying agent in such ordinances, BE, and. said bank is hereby authorized and directed upon request of the City Auditor of the City of Lubbock to invest said "reserve,, fund in such securities as hereinabove specified,as,may,be„selegte.d by said City'Auditor, which shall be paid for out of said "reserve" fund upon delivery of such is:ecurities to become a part of said "reserve" fund. SECTION 3. THAT the Citizens National Bank of Lubbock, Lubbock County, Texas, as custodian and depository of said fund, is authorized and directed to convert said securities into cash on their respective maturity dates for benefit of the "reserve" fund; and to convert .any Such securities into cash for benefit of the "reserve" fund prior to maturity when directed.by the City Auditor, PROVIDED that said bank shall not be liable.for loss, in any, sustained by the "reserve" fund due to any decrease in value of the securities so purchased under this authority, but FURTHER PROVIDED said bank shall otherwise be liable as the custodian and depository of said funds, including bonds and/or certificates, and interest accrumll from any such investments. SECTION 4. The provisions of this resoluton 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 ordinance consistent with public policy and Article 836, Revised Civil Statutes of Texas, providing for the investment of sinking funds which in its opinion is part of and read into said bond ordinance, the provisions .of which do not exclude, and were never intended t exclude, limit or deny the City Commissionst statutory right to invest said funds, as provided by law. ^ I I� OA . h AJO . passed by the Commission this g h day of Janu= s 19 59 k " LEM US BAKER, Mayor I ATTEST., ���ECN A fo�ney Lavenia (Lowe,—City Secretary-Treasurer '7W ,r PI I