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HomeMy WebLinkAboutOrdinance - 860-1948 - Issuance Of 1,850,000 Electric Light System - 02/26/1948c 0 p y 02-2U-19Jf'i ORDINANCE NO. 8 6 0 AN ORDINANCE AUTHORIZING ISSUANCE OF $1, 850, 000. 00 "CITY OF LUBBOCK, TEXAS ELECTRIC LIGHT SYSTEM REVENUE BONDS SERIES 194811 DATED MARCH l) 1948 THE STATE OF TEXAS I COUNTY OF LUBBOCK CITY ·OF LUBBOCK ON THIS, the 2.6th day of February, 1948, the City Commission of the City of Lubbock, Texas, convened in regular meeting place thereof in the City Hall, with the following members thereof, to-wit: C. A. BESTWICK, J. RAY DICKEY, F. H. CHILDRESS, W. B. PRICE, JOHN SPIKES, LAVENI.A WILLIAMS, MAYOR, Presiding, COMMlSSIONER COMMISSIONER, COMMISSIONER, COMMISSIONER, SECRETARY, present, and the following absent: None , constituting a quorum, when, among other proceedings had, were the following: Commissioner J. Ray Dickey presented for the consideration of the City Commission an ordinance authorizing the issuance of $1,850,000.00 11 City of Lubbock, Texas, Electric Light System Revenue Bonds, Series 1948", dated March 1, 19'48, (being parcel of a total issue of $4, 924, 000.00 bonds authorized at the election held in said City on December Z, 194 7). The ordinance was read in full by the City Secretary. Thereupon, Commissioner W. B. Price moved that the rule requiring that no ordinance shall be passed on the day on which it is introduced be sus- pended, and that in view of the emergency set forth and defined _ tn the pream:ble to the proposed ordinance, the same be declared an emergency measure. This motion was seconded by Commissioner F. H. Childress. This motion was duly carried by the following vote: AYES: Commissioners Dickey, Childress, Price, Spikes and Mayor Bestwick. NOES: None Thereupon, the Mayor announced that the proposed ordinance had been declared an emergency measure by unanimous vote of the Commission. Thereupon, Commissioner W. B. Price moved that the ordinance as read in full by the City Secretary be finally passed and adopted by the Commission. This motion was seconded by Commissioner F. H. Childress, and the motion, carrying with it the final passage and adoption of the ordinance, was unanimously carried by the following vote: AYES: Commissioners Dickey, Childress 1 Price, Spikes and Mayor Bestwick. NOES: None. p_ ~- Thereupon, the Mayor announced that the ordinance had been finally passed and adopted by unanimous vote of the Commission, in accordance with the requirements of Section 1,5, 16 and 17 of Article IX, of the Lubbock Char- ter; and the Mayor thereupon signed and approved the ordinance in the presence of the Commission. The ordinance is as follows: 11AN ORDINANCE by the City Commission of the City of Lubbock, Texas authorizing the issuance of $1, 850• 000. 00 1CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS, SERIES 1948 1, dated March 1, 1948 {being parcel of a total issue of $4, 924, 000.00 bonds authorized at the election held in said City on December 2. 194 7), for the purpose of constructing improvements, enlargements, extensions and repairs to the City's Electric Light System in an amount not exceeding $9.00, 000. 00; and for the purpose of improving, enlarging and extending and constructing improvements, enlargements. extensions and repairs to the City's Waterworks System in an amount not exceeding $650,000. 00; and for the purpose of constructing improvements, enlargements, exten- sions and repairs to the City's Sanitary Sewer System in an amount not exceeding $300, 000. 00; as authorized by the General Laws of the State of Texas, particularly Articles llll et seq., Revised Civil Statutes of 1925, as amended; prescribing the form of the bonds and the form of interest coupons; pledging the revenues of the City's Electric Light System to the payment of the principal of and interest on the bonds, after deduction of reasonable expenses of operating and maintaining said system enacting provisions incident and relating to the subject and purpose of this ordinance; and declaring an emergency. 11 WHEREAS, under and by virtue of an ordinance duly passed and adopted by the City Commission of the City of Lubbock, Texas, on the 13th day of· November, 1947, an election was ordered to be held in said City on the 2nd day of December, 194 7, and at which election the following propositions were sub- mitted to the qualified electors of said City: PROPOSITION NUMBER 1 "SHALL the City Commission of the City of Lubbock, Texas, be authorized to issue the revenue bonds of said City in the principal sum of TWO MILLION ONE HUNDRED EIGHTY FIVE THOUSAND DOLLARS ($2, 185, 000. 00), maturing serially or otherwise, with ten (10) year option to call, over a period of years not to exceed twenty {20) years from the date thereof, bearing interest at the maximum rate of THREE AND THREE FOURTHS PER CENTUM (3-3/4%) per annum, for the purpose of constructing improvements, enlargements, extensions and repairs to the City's Electric Light System, as authorized by the General laws of the State of Texas, particularly Article I 111 et seq., Revised Civil Statutes of 1925, as amendedJ said bonds to be special obligations of the City of Lubbock, Texas, payable as to both principal and interest solely from the revenues of the City's Electric Light System, and shall the City Com- mission be authorized to encumber the revenues of the City's Electric Light System for the purpose of securing the payment of principal and interest on said bonds, said encumbrance of said revenues to be an exclusive first lien on and pledge of said revenues after deduction of the reasonable expenses of operating and maintaining said Electric Light System, as said expenses are defined by statute?" P. 3 PROPOSITION NUMBER 2 11 SHALL the City Commission of the City of Lubbock, Texas, be authorized to issue the revenue bonds of said City in the principal sum of TWO MILLION THREE HUNDRED AND THIRTEEN THOUS- AND DOLLARS ($2, 313, 000. 00) maturing serially or otherwise, with ten (10} year option to call, over a period of years not to exceed twenty (20) years from the date thereof, bearing interest at the maxi- mum rate of THREE AND THREE-FOURTHS PER CENTUM (3-3/4o/o} per annum, for the purpose of improving, enlarging and extending and constructing itnprovements, enlargements, extensions and repairs to the City's Waterworks System, as authorized by the General Laws of the State of Texas, particularly Article 1111 et seq., Revised Civil Statutes of 1925, as amended, said bonds to be special obligations of the City of Lubbock, Texas, payable as to both principal and interest solely from the revenues of the City's Electric Light System, and shall the City Commission be authorized to encumber the revenues of the City's Electric Light System for the purpose of securing the paynrent of principal of and interest on said bonds, said encumbrance of said revenues to be an exc lusive first lien on and pledge of said revenues after deduction of the reasonable expenses of operating and maintaining said Electric Light System, as said expenses are defined by statute? 11 PROPOSITION NUMBER 3 "SHALL the City Commission of the City of Lubbock, Texas., be authorized to issue the revenue bonds of said City in the principal sum of FOUR HUNDRED TWENTY SDC THOUSAND DOLLARS ($426., 000. 00), maturing serially or otherwise, with ten (10) year option to call, over a period of years not to exceed twenty (20) years from the date thereof, bearing interest at the maximum rate of THREE AND THREE FOURTHS PER CENTUM (3·3/4%) per annum, for the purpose of constructing improvements, enlargements, exten- sions and repairs to the City•s Sanitary Sewer System, as authorized by the General Laws of the State of Texas, particularly Article 1111 et seq. , Revised Civil Statutes of 1925, as amended, said bonds to be special obligations of the City of Lubbock, Texas, payable as to both principal and interest solely from the revenues of the City's Electric Light System, and shall the City Com..missinn be authorized to encum- ber the revenues of the City's Electric Light System for ·the purpose of securing the payment of principal of and interest on said bonds, said encumbrance of said revenues to be an exclusive first lien on and pledge of said revenues after deduction of the reasonable expenses of operating and maintaining said Electric Light Syst-em, as said expenses are defined by statute? 11 AND WHEREAS, upon consideration of the returns of said election,the City Commission found that said election had been conducted in the manner pres-cribed by law, and was in all respects legally held, after due and proper notice as required by law; that due returns of said election had been made by the proper officers ; that said election resulted favorably to the issuance of said bonds; that a majority of the qualified electors, voting at said election, voted in favor of the issuance of said bonds 1 and that the City Commission is in all things authorized to issue said bonds and to io any and all things necessary and/or convenient in connec~ion therewith; and P. 4 WHEREAS, it was further provided in said ordinance passed and adopted by this City Commission on the 13th day of November, 194 7, ordering said election that all revenue bonds of the' three series therein mentioned are to be ratably secured in such manner that no one bond shall have priority of lien over any other bond, it being the intention to provide for the creation of an indebted ... ness against the City's Electric Light System Revenues for the purposes therein stated, and which bonds, if approved by the qualified voters voting at said election are to be issued as one series, to be known as "CITY OF LUBBOCK. TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS. SERIES 1948"; and WHEREAS, it being now determined by the City Commission that it is not desired at this time to issue all o£ the bonds in the aggregate amount of $4, 924, 000.00 voted for on the propositions, as aforesaid, and tl"!at $1, 850, 000. 00 is the amount of bonds now desired to be issued, and that the remaining amount of said bonds, to-wit: $3, 074, 000. 00 shall be issued in one or more series at a future date or dates when, in the judgement of the City Comm~ssion of said City, the amount thereof is needed by the City for the pur- poses for which it was authorizedl provided, however, that if and when the remaining $3, 074, 000.00 bonds, or any portion thereof, shall be issued and sold, said bonds so issued and sold, together with the $1, 850,000.00 herein authorized to be issued, shall be ratably secured by pledge of the revenues of the City•s Electric Light System in such manner that no one bond or the total authorized amount of $4, 924, 000. 00 shall have priority of lien over any other bonds; and WHEREAS, it is to the best interest of the City that the said improve- ments, enlargem.ents, extensions and repairs to the City's Electric Light Syste to the amount of $900, 000. 00; to the City's Waterworks System to the amount of $650, 000. 00• and to the City's Sanitary Sewer System to the amount of $300, 000. 00; be constructed at the earliest possible date, thereby creating this an emergency measure for the immediate preservation of the public peace, property, health and sa:fetyl' as well as a more efficient administration and operation of said. systems and o~ the municipal government; therefore BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LUBBOCK: SECTION 1: That, in order to borrow the said sum of ONE MILLION EIGHT HUNDRED FIFTY THOUSAND ($1, 850, 000. 00) DOLLARS for the purpose of securing funds to improve, enlarge, extend and repair the "City's Electric Light System, the City 1s Waterworks System, and the Cityrs Sanitary Sewer System, the City Commission of the City of Lubbock, Texas, by virtue of authority expressly conferred by the qualified electors of s~d City, at the afore- said election, and pursuant to the General Laws of the State of Texas, pa:rticu- larly Article 1111 et seq., Texas Revised Statutes of 1925, as amended, has determined that there shall be issued and there is hereby issued a series of coupons 'bonds in the total principal amount of $1,850, 000.00 being the first in,stalhnent or parcel of a total authorized issue of $4, 924, 000. 00), to be designated "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVEN- UE BONDS, SERIES 194811 , payable as to both principal and interest solely from and secured by an exclusive lien on and pledge of the revenues of the City's Electric Light System, after deduction of reasonable expenses of operating and maintaining the said Electric Light Sy:stem, as said expenses are defined by statute. SECTION 2: That the said bonds shall be dated March 1, 19481 shall be numbered consecutively from One (l) to One Thousand Eight Hundr'ed Fi!ty(l850), both inclusive, s .hall be in denomination of One Thousand Dollars ($1, 000. 00) eac ., P. 5 aggregating the sum of $1,850, 000. OOi shall bear interest as hereinafter set forth; and shall become due and payable serially in accordance with the fol- lowing schedule: ' BOND NUMBERS MATURITY DATES AMOUNTS (All Inclusive) 1 to 70 March 1, 1949 $ 70,000.00 71 to 140 March 1, 1950 70,000.00 141 to 215 March 1, 1951 75,000.00 216 to 290 March 1, 1952 75, ooo. 00 291 to 370 March I, 1953 80, ooo. 00 371 to 450 March 1, 1954 80,000.00 '51 to 530 March 1, 1955 80,000.00 531 to 615 March 1, 1956 85, ooo. 00 616 to 700 March 1, 1957 85,000.00 701 .to 790 March 1, 1958 90,000.00 791 to 880 March 1, 1959 90,000.00 881 to 975 March 1, 1960 95,000.00 976 to 1075 March 1, 1961 100, ooo. 00 1076 to 1175 March 1, 1962 100,000.00 1176 to 1280 March 1, 1963 105,000.00 1281 to 1385 March 1, 1964 105,000 .. 00 1386 to 1495 March 1, 1965 110, ooo. 00 1496 to 1610 March 1, 1966 115,000.00 1611 to 1730 March, 1, 1967 120,000.00 1731 to 1850 March 1, 1968 lZO,OOO.OO PROVIDED, HOWEVER, that the City reserves the right to redeem Bonds Numbers 791 to 1850, both inclusive, (maturing on March 1st in each of the years 1959 to 1968, inclusive) in whole or in part, on March 1, 1958, or on any interest payment date thereafter, at par and accrued interest; PRO- VIDED FURTHER, that if less than all of said bonds are redeemed on any such redeptption dates, same shall be redeemed in inverse numerical order~ and PROVIDED FURTHER that at least thirty (30) days prior to any interest pay- ment date upon which any of said bonds are to be redeemed, notice of redemp- tion, signed by the City Secretary (specifying the serial numbers and amounts of bonds to be redeemed) shall be published once in a newspaper of general circulation in the State of Texas, and shall have been filed with the FIRST NATIONAL BANK IN DALLAS, DALLAS. TEXAS {the paying agent named in each of said bonds), and should any bond or bonds not be presented for redemp- tion pursuant to such notice, the same shall cease to bear interest from. and after the date so fixed for redemption. SECTION 3: That the said bonds shall bear interest from date until paid at the following rates per annum~ that is to say - - (a) Bonds Numbers 1 to 790, both inclusive~ (maturing on March 1st in each of the years 1949 to 1958, both inclusive) shall bear interest at the rate -of TWO AND ONE-HALF PER CENTUM {2-1/2%) per annum; (b) Bonds Numbers 791 to 1850, both inclusive, (maturing on March 1st in each of the years 1959 to 1968, both inclusive) shall bear interest at the rate of THREE AND ONE-FOURTH PERCENTUM (3-1/4%) per annum~ and P. 6. such interest to be evidenced by proper coupons attached to each of said bonds; and said interest shall be pay~ble on September 1, 1948, and semi-annually thereafter on March 1st and September 1st in each year. SECTION 4: That both principal of and interest on said bonds shall be payable in lawful money of the United States of America at the FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS upon presentation and surrender of bonds or proper interest coupons. SECTION 5: That each of said bonds shall be signed by the Mayor and countersigned by the City Secretary, and the corporate seal of the 11 CITY OF LUBBOCK. TEXAS", shall be impressed upon each of them. SECTION 6: That the facsimile signatures of the Mayor and City Secre- tary may be lithographed or printed on the interest coupons attached to said bonds, and shall have the same effect as if they had been signed by them. NO. SECTION 7: That the form of said bonds shall be substantially as follows: UNITED STATES OF AMERICA STATE OF TEXAS, COUNTY OF LUBBOC~ CITY OF LUBBOCK. TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BOND, SERIES 1948 $1, ooo. 00 FOR VALUE RECEIVED, the City of Lubbock, in the County of Lubbock, State of Texas, hereby acknowledges itself indebted to and promises to pay to bearer, as hereinafter stated, on the FIRST DAY OF MARCH, 19 , the sum of --- ONE THOUSAND DOLLARS " ($1, 000. 00), in lawful money of the United States of America, with interest thereon from the date hereof at the ra"te of .PER CENTUM { . %) per annum, pa.yable semi-annually on March 1st and September lst in each year, the first interest payment date being September 1, 1948, upon presentation and surrender of the coupons hereto appertaining as they severally become due; both principal and interest shall be payable at the Fm.ST NATIONAL BANK IN DALLASa DALLAS, TEXAS, and the said City of Lubbock, Texas, is hereby held and firriily bound to a'pply the pledged appropriated revenues of its Electric Light 'System to the prompt payment of principal and interest of this bond at ~aturity, and to pay. said principal and interest as they mature. · THlS BOND is one · of a series of bonds of like tenor and effect except as to number, interest rate and maturity, numbered from One (1) to One Thousand Eight Hundred Fifty (1, 850) both inclusive, in denomination of One Thousand Dollars ($1, 000. 00) each, aggregating the sum of ONE MILLION EIGHT HUN- DRED FIFTY THOUSAND DOLLARS ($1, 850,000. 00), {being the first install- ment or parcel of a total authorized issue of $4,924, 000.00 revenue bonds) issued for th..e purpose of i-qlproving, enlarging~ extending and repairing the P. 7 City's Electric Light System, Waterworks System and Sanitary Sewer System, in accordance with the Constitution. and laws of the Sta-te of Texas, particularly Article 1111 et seq., Revised Civil Statutes of 19Z5, as amended, and by authority of a vote of the qualified property taxpaying voters of said City, who had duly rendered their property for taxation, voting at an election held for that purpose within said City on the Znd day of December, 1947, and pursuant to an ordinance passed by the City Commission of said City and duly recorded in the Minutes of the City Commission. AS PROVIDED IN THE ORD:n'IANCE hereinabove mentioned, the City reserves the right to redeem Bonds Numbers 791 to 1850, both inclusive, of this series (maturing on March 1st in each of the years 1959 to 1968, inclusive) in whole or in part, on March 1, 1958, or on any interest payment date there- after, at par and accrued interest; PROVIDING FURTHER, that if less than all of said bonds are redeemed on any of such redemption dates. same shall be redeemed in inv erse numerical order1 and PROVIDED FURTHER, that at least thirty (30) days prior to any interest payment date upon which any of said bonds are to be red~e·med, notice of redemption, signed by the City Secretary (speci- fying the serial numbers and amounts of bonds to be redeemed) shall be pub- lished once in a newspaper of general circulation in the State of Texas, and shall have been filed with the FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS and should any bond or bonds not be presented for redemption pursuant to such notice the same shall cease to bear interest from and after the date so fixed for redemption. THE DATE of this bond, in conformity with the ordinance above mentioned, is March I, 1948. THIS BOND and the series of which it is a part constitute special obliga- tions of the City of Lubbock, and together with such other bonds of the said total voted amount of $4,924, 000.00 as may be issued, are payable as to both principal and interest and secured by an exclusive first lien on and pledge of the revenues of the City 1s Electric Light System, after deduction of reasonable operation and maintenance expenses. EACH HOLDER of this bond, payable to bearer, or of the interest coupons hereto attached, is conclusively presumed to forego and renounce his equities in favor of subsequent holders for value without notice and to a .gree that, being payable to bearer, this bond and each of the interest coupons attached, may be negotiated by delivery however possession may have been acquired, and that any subsequent holders who may receive this bond or any of the interest coupons attached for value without notice has thereby acquired absolute title free from all equities and claims of ownership of any pri~:r-holder. The City of Lubbock, its officers and the paying agent shall not be affected by any notice to-the contrar, • 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. AND IT lS 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 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, and that this series of revenue bonds does v P. 8 not exceed. any constitutional or statutory limitations I and that provision has been made for the payment of the principal of and interest on this bond and the series of which it is a part by,irrevocably pledging the revenues of said Elec- tric Light System of said City of Lubbock. IN TESTIMONY WHEREOF, the City Commission of the City of Lubbock has caused the seal of said City to be hereon impressed, and this bond 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 lithographed, engraved or printed facsimile signatures of the Mayor and City Secretary. COUNTERSIGNED: cuysecre~ry~~tyoTL~boc~Taa~- sEcTroN 8: The form of said interest coupons shall be substantially as follows: NO. ON THE DAY OF -----19 ------------ $ ______ _ the CITY OF LUBBOCK. TEXAS, hereby promises to pay to the bearer, out of funds specified in the bond to which this coupon is attached, and in lawful money of the United States of America, at the FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS , the sum of -.............. -.. DOL.LARS ($ ) , said sum being six months' interest that day due on 11 CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BOND, SERIES 194811 , dated March 1, 1948. Bond No. ----- -----cuysecretarr ______ _ -------Maror---~----- SECTION 9: Substantially the following form of Comptroller's certificate shall be printed on the back of each bond: OFFICE OF COMPTROLLER I STATE OF TEXAS REGISTER NO. 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 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 that it is a valid and binding special obligation of the City of Lubbock, 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, -----------------------.-· • • -../ P. 9 SECTION 10: That the following is a schedule of principal and interest requirements, showing also the total annual requirements of said "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS. SERIES 194811 , that is to say .. • ' _, CITY OF LUaBOCK. TEXAS $1, 850, 000.00 ELECTRIC LIGHT SYSTEM REVENUE BONDS 2-1/2"/o -3-1/2% · \ YEARI ENDING · MARCH 1st PRINCIPAL INTEREST .T()TAL ·. 1949 $ 70,000 $ 5.,200.00 $124,200.00 1950 .70, 000 52,450.00 122,450.00 1951 75,000 50,700.00 125,700.00 1952 75,000 48,825.00 123,825.00 1953 80,600 46,950.00 126,950.00 1954 80,,000 44,950.00 ·124, 950. 00 . 1955 80,000 ~2,950.00 122,950.00 1956 85,000 40,950.00 125,950.00 1957 85,000 38,825.00 123,825.00 1958 90,000 36,700.00 126,700.00 1959 90,000 34,450.00 124,450. 00 1960 95,000 31,525.00 126,525.00 1961 100,000 28,437.50 128,437.50 1962 100,000 25,187.50 1Z·5, 187.50 1963 105,000 21,937.50 126,937.50 1964 105,000 18, 5Z5. 00 123,525.00 1965 uo. 000 15,112~50 126,112.50 1966 115,000 11,537.50 126,537.50 1967 120,000 7,800.00 127,800.00 1968 120,000 3,900.00 123,900.00 $1,850,000 $655., 912. 50 Total interest cost $655, 912. 50 Average annual requirement $125, 295. 62 Average monthly principal and interest requirement $10,441.20 20% reserve (until one year's principal and interest requirement has accumulated 2, 088. 26 Average monthly requirement 1st 5 years Average monthly requirement after five years $12,529.46 10,441.20 No mistake in the foregoing calculations shall in any manner operate to diminish the payment of the amounts to become due on said bonds, but an amount is hereby ordered to be set aside for each of the years specified, suf- ficient in all respects to meet the requirements hereof. SECTION 11: The City of Lubbock covenants that, as received, all opera- ting income and revenues of its Electric · Light System shall be first deposited .._}, P. 10 in an account designated the "Electric Light System Ftmd11 , kept separate and apart from all other funds or accounts, and further that said "Electric Light System Fund" shall be pledged and appropriated to the following uses and in the order of precedence shown: First: To the paytnent of all necessary and reasonable expenses of operation and maintenance of the combined Electric Light System as said expenses are defined by statute. Second: To the "SPECIAL ELECTRIC LIGHT SYSTEM REVENUE BOND FUND" hereby created for the payment of principal and inter- est of the bonds herein authorized when and as the same fall due and mature and to be used for no other purpose. Third: To any proper City purpose now or hereafter permitted by law. The following provisions shall govern the creation and maintenance of the aforesaid "SPECIAL ELECTRIC LIGHT SYSTEM REVENUE BOND FUND 11 : The entire net income and revenues of the Electric Light System remain- ing after operation and maintenance expenses are deducted shall be, and the same are hereby irrevocably pledged to the said "SPECIAL ELECTRIC LIGHT SYSTEM REVENUE BOND FUND." in amounts sufficient to produce the total annual principal and interest requirements of the revenue bonds herein authori- zed as such total requirements are sho.wn in the schedule relating thereto, as set out in Section 10 of this ordinance; AND, IN' ADDITION, said Special Fund . shall contain a reserve, and to establish such reserve, shall be supplemented each year by an amount equal to not less than ZO% of the average total annual requirements as above shown, said Special Fund to be continuously supplemente by said additional amounts until such time as said Special Fund is equal in amount to the sum required to fully meet and discharge the principal and inter- est installments falling due on or before the next succeeding principal maturity date plus a sum equal to the average total annual requirements for one full year in advance as a reserve for use in meeting the requirements of the bonds herein authorized, if need be, and that this arrangement shall continue and said Special Fund shall be continuously supplemented as necessary to maintain said reserve until said bonds with all interest thereon have been fully paid and dis- chargedt or until such time as the Special Fund, plus said reserve, shall con- tain amounts equal to the total principal and interest requirements of the revenue bonds then outstanding at their final maturity. The City Treasurer is authorized and directed to calculate the amounts required annually as aforesaid (including said reserve} and to withdraw the said amounts thus determined from the aforementioned "Electric Light System Fund", and shall deposit them in said "SPECIAL ELECTRIC LIGHT SYSTEM REVENUE BOND FUND" in equal monthly installments on or before the 15th day of each month. THE FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS (the _paying agent named here· and in the bOnds and interest coupons authorized hereunder) is hereby designated as the custodian of 25aid Special Fund, and the deposits above prescribed shall be transmitted to said fund with s.aid FIRST NATIONAL BANK IN DALLAS, DALLAS~ TEXAS. In the event that the income and revenues of the City1s ElectricUght System are insufficient in any month to permit the required deposits into the Special Fund in full accord with the provisions hereof, then the amount of any deficiency shall be added to the amount otherwise required to be deposited in said fund in the next month, until all deficiencies are rectified. Any funds remaining on hand as the proceeds of the operating income and revenues of the City's Electric Light System after first making full provisions for the purposes and funds relerred to in the foregoing paragraphs, may be used by the City for the purpose which. may now or hereafter be permitted by law. For all purposes of this ~rdinance and in particular with respect to the pledge and appropriation of revenues herein prescribed the uELECTRIC LIGHT SYSTEM" of the City of Lubbock shall be construed to mean all properties, real, personal, mixed or otherwise, now owned or hereafter acquired by the City of Lubbock, through purchase, construction, or otherwise, and used in connection with said Electric Light System and in any wise appertaining thereto whether situated within or without the limits of said City. SECTION 12: The City of Lubbock further covenants that, so long as any of the reyenue bonds and coupons authorized by this ordinance remain outstand- ing and unpaid, it shall fix and maintain rates and collect charges for the facilities and services afforded by its Electric Light System which will produce income and revenues sufficient at all times to: (1) Pay all operation, maintenance, depreciation, replacement and .betterment expenses and charges of said System; and (2) Establish and fully maintain the above prescribed "SPECIAL ELEC• TRIC LIGHT SYSTEM REVENUE BOND FUND.". Section 13: The City further covenants by and through this ordinance, as follows: (a) That the revenue bonds authorized hereunder shall be special obligations of the City, and the holder thereof shall never have the right to demand P.ayment out of funds raised or to be raised, by taxation; {b) That it has the lawful power to ·pledge the revenues supporting this issue of bonds and has lawfully exercised said power under the Consti- tution and laws of the State of Texas, including power existing under Articles 1111 to 1118, both inclusive, 1925 Revised Civil Statutes of the State of Texas, with amendments thereto, and by authority of a vote of the qualified electors of said City, voting at an election held on the 2nd day of December, 1947; that the bonds issued hereunder shall be ratably secured, under said pledge of income, in such manner that one bond shall have no preference over any other bond of said issue; and (c) That, other taan for the payment of the bonds hereby issued. the rents, revenues and income of the said Electric Light System have not been in any manner pledged to the payment of any debt or obligation of the City and/ or said System; and that said Electric Light System is free and clear of all encumbrances whatsoever. SECTION 14: That the City of Lubbock hereby agrees, forthe benefit of the holders of the bonds. to carry insurance on the Electric Light System of the kinds and in the amounts which are usually carried by private companies operating similar properties. All moneys received for losses under such insur" ance policies, other than public liability policies, are hereby pledged by the City of Lubbock as security for the bonds until and unless such proceeds are paid out in making good the loss or damage in respect of which such proceeds are P. lZ received, either by repairing the property damaged or replacing the property destroyed, and adequate provision for making good such loss and damage made within ninety days from the date of the loss. The payment of premiums for all insarance policies required under the provisions of this section shall be con- sidered to be maintenance and operation expenses. SECTION 15: The Mayor and City Secretary are hereby instructed and directed to do any and all things necessary in reference to the installing and maintaining of a complete system of records and accounts pertaining to said Electric Light System, and to make the moneys available for the payment of said revenue bonds in the manner provided by Article 1113, Revised Civil Statutes of 1925, as amended by Chapter 139, Acts of the Regular Session of the Forty-eighth Legislaturei the fiscal year for the operation of such system shall be April 1st to March 31st of each year; and the holder or holders of twenty-five per centum (25%) in aggregate principal amount of said bonds then outstanding, · or any duly authorized agent or agents of such holders, shall have ·the right at all reasonable times to inspect all records, accounts and data relating thereto and to inspect the system and all properties comprising the System. The City of Lubbock further agrees t~t it will within sixty days following the close of each fiscal year cause an audit of such books and accounts to be made by an indepen- dent firm of certified public accountants, showing the receipts and disburse- ments for account of the system, and that such audit will be available for inspection by the holders of any of the bonds. Each such audit, in addition to whatever matters may be thought proper by the accountant to be included therein, shall include the following: 1. A statement in detail of the income and expenditures of the System for such fiscal year. ~ A balance sheet as of the end of such fiscal year. 3. The accountant 1 s comment regarding the manner in which the Qty has carried out the requirements of this ordinance, and the accountant•s recommendation for any change or improvements in the operation of the system. 4. A list of the insurance policies in force at the end of the fiscal year, setting out as to each policy the amount of the policy, the risks covered, the name of the insurer and the expiration date of the policy. ~ The number of properties conne<;ted with the Electric Light System at the end of the year, the number of metered electric customers at the end of the year, and the number of unmetered electric customers at the end of the year. All expenses incurred in the making ·of the audits required by this Section shall be re.garded and paid as a maintenance and operation expense. The City of Lubbock iurther agrees to furnish a copy of each such audit to the holder of any of the bonds at his request after the close of each fiscal year, and that any such holder shall have the right to discuss with the accountant making the audit the contents of the audit and to ask for such additional information as he may reasonably require. SECTION 16: That the City of Lubbock further covenants and agrees with the holder or holders of said bonds from time to time, or any o£ them, that it ·. P. 13 will maintain and operate the System with all possible efficiency while any of the bonds remain outstanding a:nd unpaid and that it will faithfully and punctually per- form all duties with reference to the System required by the Constitution and Laws of the State of Texas., including the making and collecting of reasonable and sufficient rates for electric light service supplied by the System, and segre- gating and application of the revenues of the System as required by the provi ... sions of this ordinance. The City covenants and agrees that no free services shall be rendered by the System to any customers, including the City and its various departments, that all electric light services used by the City and its various departments will be paid for at the same rates charged other consumers. SECTION 17: .The City of Lubbock hereby irrevocably covenants, binds and obl~gates itself not to mortgage or otherwise encumber the System or any part thereof, or to sell, lease or in any manner dispose of the System or any · part thereof, including any and all extensions and additions that may be made thereto, until the bonds herein authorized to be issued have been paid in full as to both principal and interest; {provided that this covenant shall not be construed to prevent the disposal by the City of Lubbock of property which in its judge- ment has become inexpedient to use in connection with the System, when other property of equal value is substituted therefor). SECTION 18: Any subsequent series of revenue bonds,· which in the aggre- gate shall not exceed $3, 074, 000 (being the balance of tp.e $4, 9Z4, 000 authorized but not provided to be issued by this Ordinance} when and as issued by proper ordinance or ordinances of the City Commission and thereupon sold and delivered to the proper party or parties, shall be ratably secured by a pledge of the revenues of the Electric Light System in such manner that no one bond of the series herein provided to be issued or those subsequently to be issued shall have priority of lien over any other bond of the entire amount so issued and sold. PROVIDED~ HOWEVER, that no additional bonds of the remaining $3, 074, 000 voted at the election of December z, 194 7, but not issued hereunder, shall be issued or sold until such time as the average annual net revenues of the System for the two fiscal years immediately preceding the issuance and sale of such additional bonds. after deducting all costs of operating and maintaining the System, are certified by a · certified public accountant to be equa:l to at least one and one-hal£ times the average annual requirements of principal and interest on the then outstanding bonds of the series herein authorized to be issued and such additional bonds ·then proposed to be issued. SECTION 19: The City of Lubbock further covenants and agrees that while any of the bonds of the said total principal amount of $4, 9Z4, 000 voted at the said election of December Z, 1947, are outstanding and unpaid it will issue no other bonds or obligations of any kind or nature payable from or enjoying a lien on the City's Electric Light System or the revenues thereof on a parity with or having priority over said bonds, it being expressly understood and agreed that any further obligations payable from the revenues of said System or any part thereof shall be junior and subordinate in all respects. The provisions .of this section shall be subject only to the following excep- tions; that if., prior to the payment and discharge of all outstanding bonds of the voted principal amount of $4, 9Z4, 000 herein or hereafter authorized to be issued, it shall be found desirable to refund said bonds under the provisions of any law then available, said bonds or any part thereof may be refunded with the consent of the holders thereof (except as to bonds which are redeemable and have been duly called for redemption, in which case such consent shall not be necessary} and the refunding bonds so issued shall enjoy complete equality of lien with the portion of said bonds which is not refunded, . if any there be, and P. 14 such refunding bonds shall continue to enjoy the same priority of lien over any other bonds or obligations of the Electric Light System as were enjoyed by the bonds refunded: PROVIDED, ·HOWEVER, that if only a portion of the bonds outstan,ting is refunded and if such bonds are refunded in such manner that the interest rate of the refunding bonds is increased or that any of the refunding bonds mature at a date earlier than the maturity dates of the bonds refunded and earlier than the maturity date of any of the bonds not refunded, then such bonds may not be refunded without the consent of the holders of the refunded portion of the bonds then outstanding of the authorized voted amount of $4~ 924~ ooo. SECTION 20: That so far as it legally may, the City of J;...ubbock covenants and agrees, for the protection and security of the bonds herein authorized and the holders hereof from time to time, that it will not grant any franchise for the establishment of any additional competing Electric Light System in the City of Lubbock until all bonds issued pursuant hereto shall have been retired.· SECTION 21: That the sale of the bonds herein authorized to FIRST SOUTHWEST COMPANY, of DALLAS, TEXAS, and associates, at the price of not less than par and accrued interest is hereby confirmed. Delivery of the bonds shall be made to said purchaser as soon as may be after the adoption of this ordinance, upon payment therefor in accordance with the terms of sale. SECTION 22: That the provisions of this ordinance shall constitute a contract between the City of Lubbock ·and the holder or holders from time to time of the bonds herein authorized to be issued and after the issuance of any of said bonds, no change, variation or alteration of any kind of the provisions of this ordinance may be made, unless as herein otherwise provided, until all of the bonds issued hereunder have been paid as to both principal and interest. SECTION 23: AND BE IT FURTHER ORDAINED BY THE CITY COMMIS- SION OF THE CITY OF LUBBOCK: The fact that it is to the best interest of the City that the authorized con- struction of improvements, enlargements, extensions a:nd repairs to the City's Electric Light System, the City's Waterworks System and the City's Sanitary Sewer System, as hereinabove set out, be effected at the earliest possible date, creates this an emergency measure for the immediate preservation of the public peace, property, health and safety, as well as a more efficient administration and operation of the City's above mentioned.Systems, demanding that the Charter provisions to the effect that no ordinance shall be passed on the day on which it shall be introduced, be suspended, and this ordinance is hereby de- clared an emergency measure by unanimous vote of the City Commission, and the same shall take effect from and after its passage, and it is so ordained. PASSED AND APPROVED, this the 26th day of February, 1948. ATTEST: L~-~~~~Will~~~---­ City Secretary, City of Lubbock, Texas .. _Lsi_ f<;.,.~·-B~stwis.,k_ --·---__ Mayor, C1ty of Lubbock, Texas.