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HomeMy WebLinkAboutOrdinance - 916-1949 - Issuance Of $2,300,000 Electric Light System Revenue Bond - 04/28/1949I 0 04-2<a -1.94.9 NO. 916 AN ORDINANCE AUTHORIZING ISSUANCE OF $2,300,000 11 City of Lubbock, Texas, Electric Light System Revenue Bonds, Series 1949", Dated May 1, THE STATE OF TEXAS I COUNTY OF LUBBOCK CITY OF LUBBOCK 1 9 4 9 ON THIS, the 28th day of April, 1949, the City Cornmis- sion of the City of Lubbock, Texas, convened in regular session at the regular meeting place thereof in the City Hall, with the following members present, to-wit: W. H. RODGERS, W. B. PRICE, JOHN SPIKES., E. K. HUFSTEDLER, JR. CLARENCE K. WHITESIDE LA VENIA LOWE, and with the following absent: MAYOR, Presiding, COMMISSIONER, COMMISSIONER, COMMISSIONER, COMMISSIONER, CITY SECRETARY, none , constituting a quorum; when, among other proceedings had, were the following: Commissioner Hufstedler presented for the consideration of the City Commission an ordinance authorizing the issuance of $2,300,000 11 City of Lubbock, Texas, Electric Light System Revenue Bonds, Series 1949'~, dated May 1, 1949 (being the second . parcel or installment of a total issue of $4,924,000 bonds authorized at the election held in said City on December 2, 1947). The ordinance was read in full by the City Secretary. (· Thereupon, Commissioner Hufstedler moved that the rule requiring that no ordinance shall be passed on the day on which it is introduced be suspended, and that in view of the emergency set forth and defined in the preamble to the proposed ordinance, the same be declared an emergency measure. This motion was seconded by Commissioner Whiteside. This motion was duly carried by the following vote: AYES: Commissioners Price, Spikes, Hufstedler and Whiteside, and Mayor Rodgers. NOES: None. Thereupon, the Mayor announced that the proposed or- dinance had been declared an emergency measure by unanimous vote of the Commission. Thereupon, Commissioner Hufstedler moved that the or- dinance as read in full by the City Secretary be finally passed and adopted by the Commission. This motion was seconded by Commissioner Whiteside, and the motion, carrying with it the final passage and adoption of the ordinance, was unanimously carried by the following vote: AYES: Commissioners Price, Spikes, Hufstedler and Whiteside, and Mayor Rodgers. NOES: None. Thereupon, the Mayor announced that the ordinance had been finally passed and adopted by unanimous vote of the Commissio in accordance with the requirements of Sections· 15, 16 and 17 of Article IX, of the Lubbock Charter; and the Mayor thereupon signed and approved the ordinance in the presence of the Com- mission. The ordinance is as follows: ( /_, .<-- / ., / ,•' !: ( . "AN ORDINANCE by the City Comm1.ssion of the City of Lubbock, Texas, authorizing the issuance of $2,300,000 1 CITY OF LUBBOCK, TEXAS., ELECTRIC .LIGHT SYTEM REVENUE BONDS, SERIES 1949', dated May 1, 1949 (being the second parcel or install- ment of a total issue of $4,924,000 bonds author- ized at the election held in said City on Decem- ber 2, 1947), for the purpose of constructing ~provements, enlargements, extensions and re- pairs to the City's Electric Light System, waterworks System and Sanitary sewer System; as authorized by the General Laws of the State of Texas, particularly Articles 1111 et seq., Revised Civil Statutes of 1925, as amended; pres- cribing the form of the bonds and the form of interest coupons; pled&ing 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 operat- ing and maintaining said system; enacting pro- visions incident and relating to the subject and purpose of this ordinance; and declaring an emer- gency." WHEREAS, under and by virtue of an ordinance duly pass- ed 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, 1947, at which elec- tion the following propositions were submitted to the qualified electors of said Cityr 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 ($2,1851 000.00), maturing serially or otherwise, with ten (10} year option to call, over a period of years not to exceed ~wenty {20) years from the date there- of, bearing interest at the maximum rate of THREE AND THREE- FOURTHS PER CENTUM {3-3/~) per annum, for the purpose . of constructing improvements,.enlargements, extensions andre- pairs to the City's Electric Light System, as authorized by the General Laws ot the State of Texas, particularly Article 1111 et seq., Revised Civil Statutes of 1925, as ame~ded, 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 tor the purpose ot 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 System, as said expenses are defined by statute?"- ~- / ., '' ·' PROPOSITION NUMBER 2 ~SHALL the City Commission of the City of Lubbock, Texas, be authorized to _issue the revenue bonds ot said City in the principal sum of TWO MILLION THREE HUNDRED AND THIRTEEN THOUSAND DOLLARS { $2,313.1 000.00) . matur~g . serially or otherwise, with ten (lO).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/~) per annum, for the purpose of improving, enlarging, extending and constructing improvements, 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 Commis- sion be authorized to encumber 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 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 princi~al sum of POUR HUNDRED TWENTY SIX THOUSAND DOLLARS ('426,000.00), maturing serially or other- wise, 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- POURTHS PER CENTUM (3-3/4%) per annum, for the purpose of constructing ~provements,_enlargements, extensions andre- pairs to the City's Sanitary sewer System, as authorized by the General Laws of the St~te 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 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 System, as said ex- penses are defined by statute?" AND WHEREAS, upon consideration of the returns of said . election, the City Commission found that said election had been conducted in the manner prescribed by law, and was in all respects ,1. legally held, atter due and proper notice as required by law; that due returns of sa!d election had been made by the proper officers; that said election resulted favorably to the issuance () ot said bonds; that a majority of the qualified electors, voting at said election, voted in favor ot the issuance of said bonds; and that the City Commission is in all things authorized to issue said bonds and to do any and all things necessary and/or convenient in connectiat therewith; and WHEREAS, it was further provided in said ordinance passed and adopted by this City Commission· on the 13th day ot November, 1947, 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 ot an indebtedness against the City's Electric Light System Revenues tor 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 lmown as "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS" ; and WHEREAS, by an ordinance duly passed and adopted by this City Commission on the 26th day ot February, 1948, $1,850,000 ot the bonds voted as aforesaid, were authorized, issued ·and sold, 1 it being determined by said City Commission at that time that it was not then desired to issue all of the bonds in the aggregate amount of $4,924,000 voted for on the propositions as aforesaid, and that the remaining amount of said bonds, to-wit: $3,074,000, should be issued in one or more series at a future date or dates when, in the Judgment of the City Commission ot said City, the amount thereof should be needed by the City for the purposes tor which it was authorized; it being also further provided that if and when the remaining $3,074,000 bonds, or any portion thereof, should be issued and sold, said bonds so issued and sold, together /. with the $1,850,000 therein authorized to be issued, should be ' ratably secured by pledge of the revenues of the City's Electric Light system in such manner that no one bond of the total authorized amount of $4,924,000 shall have priority of lien over any other bonds; and it being also further provided that the / City shall not issue and sell any of such remaining bonds authoriz- ed at said election, until such time as the average annual net revenues of the System for the two fiscal years ~ediately pre- ceding the issuance and sale of such additional bonds, after de- ducting all coste of operating and maintaining the System, are certified by a certified public accountant to be equal to at least one and one-half times the average annual requirements of princi- pal and interest on the then outstanding bonds of the series therein authorized to be issued and such additional bonds then proposed to be issued; and WHEREAS, it is now round and determined by the City Commission that the average annual net revenues of the Electric Light System of the City of Lubbock, Texas,,for the two fiscal years immediately preceding the sale of such additional bonds, and being for the fiscal years ending --~M~a-r~c~h~3~1 ___ , 19~, and ~M~a~r~c~h--3~1~-----' 19~, respectively, after deducting the reason- able cost of operating and maintaining the Electric Light System, A have been certified by c J. T, TALKINGTON 1 a certified public accountant, to be equal to at least one and one-half times the average annual requirements of principal and interest on the $1,850,000 "CITY OF LUBBOCK, TEXAS, ElECTRIC LIGHT SYSTEM REVENUE . . .. . BONDS, .SERIES 1948", dated March 1, 1948; and on. the $2,300,000 additional bonds herein authorized to be issued; and WHEREAS, it being now determined by the City Commission that it is not desired at this time to issue all of ··the bonds remaining unissued, in the aggregate amount of $3,074,000, and that $2,300,000 is the amount of bonds now desired to be issued, .. and that the remaining amount or said bonds, to-wit: $774,000 shall be issued in one or more series at a future date or dates when, in the Judgment of the City Commission ot said City, the amount thereof is needed by the City tor the purposes tor which it was authorized; provided, however, that it and when the re- maining $774,000 bonds, or any portion thereof, shall be issued and sold, said bonds so issued and sold, together with the $1,850,000 bonds authorized by the ordinance of February 26, . 1948, and together with the $2,300,000 bonds herein authorized to be issued, shall be ratably secured by pledge or the revenues of the City*s Electric Light System in such manner that no one bond ot the total authorized amount or $4,924,000 shall have t priority ot lien over any other bonds; and WHEREAS, it is to the best interest ot the City that the said improvements, enlargements extensions and repairs to the City's Electric Light System, Waterworks System and sanitary Sewer System, be constructed at the earliest possible date, there- by creating this an emergency measure tor the immediate preserva- tion of the public peace, property, health and safety, as well as a more efficient administration and operation of said systems and of the municipal government; therefore BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LUBBOCK: SECTION 1: That, 1n order to borrow the said sum ot TWO MILLION THREE .HUNDRED THOUSAND DOLLARS ($2,300,000) tor the .purpose of securing funds to improve~ enlarge, extend and . repair the City•s Electric Light System, Waterworks System and sanitary Sewer System, the City Commission of the City of Lubbock, Texas, by virtue or authority expressly conferred by the qualified electors ot said City, at the atoresaid election, and pursuant to the General Laws of the State ot Texas, particularly Article 1111 et seq., Texas Revised Statutes or 1925, as amended, has determined that there shall be issued and there is hereby issued a series of coupon bonds in the total principal amount of $2,300,000 (being the second installment or parcel of a total authorized issue of $4,924,000), to be designated "CITY OF ' LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS 1 SERIES 1949u, . . payable as to both principal and tnterest solely from and secured by .an exclusive lien on and pledge of the revenues or the City 1 s Electric Light System, after deduction of reasonable expenses or operating and maintaining the said Electric Light SyBtem, as said expenses are defined by statute. I SECTION 2: That the said bonds shall be dated May 1, 1949; shall be numbered consecutively from One (1) to Twenty-three Hundred (2300), both inclusive, shall be tn denomination or One Thousand Dollars ($1,000.00) each, aggregating the sum or $2,300,000; shall bear interest as hereinafter Bet forth; and shall become due and payable serially in accordance with the .ollowing schedule: (_,~ BOND NUMBERS MATURITY DA'l'ES AMOUR'l'S 1' to· as · .:c· • May 1; 1950 -,, $Ss,ooa ·· 86 to 170 May 1, 1951 85,000 171 to 260 May 1, 1952 90,000 261 to 350 May 1, 1953 90~000 351 to 445 May 1, 1954 95,000 446 to 545 May 1, 1955 100,000 546 to 645 May 1, 1956 100,000 646 to 750 May 1~ 1957 105,000 751 to 860 May 1, 1958 110,000 861 to 970 May 1, 1959 110,000 971 to 1085 Jiay 1, 196o 115,000 086 to 1205 May 1, 1961 120,000 2o6 to 1325 May 1, 1962 120~000 326 to 1450 May 1, 1963 125,000 451 to 1580 May 1, 1964 130,000 581 to 1715 May 1, 1965 135,000 716 to 1855 May 1, 1966 140,000 856 to 2000 May 1, 1967 145,000 001 to 2150 May 1, 1968 150,000 151 to 2300 May 1, 1969 150.,000; PROVIDED, HOWEVER, that the City reserves the right to redeem Bonds Numbers 971 to 2300, both inclusive (maturing on May 1st 1n each ot the years 1960 to 1969, both inclusive) in 1dlole or in part, on May . 1, 1959, or on any interest payment date there- atter, at par and accrued interest; PROVIDED, FURTHER, that if less than all of said bonds are redeemed on ani-_such redemption dates, same shall be redeemed 1n inverse numerical order; and -PROVmED, FURTHER, that at least thirty (30) days prior to any ·. interest pajment· date upon which any of said bonds are to be re- deemed, notice ot redemption, signed by the City Secretary (speci- fying the serial numbers and amounts ot 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 redemption pursuant to such notice, the same shall cease to bear interest from and after the date so fixed for redemption. SECTION 3: That said bonds shall bear interest from date until paid at the rate of TWO AND ONE-HALF PER CENTUM {2i%) per annum, such interest to be evidenced by proper coupons attached to each of said bonds; and said interest shall be payable on November 1, 1949, and semi-annually thereafter on May 1st and November 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 "CITY OF LUBBOCK, TEXAS", shall be impressed upon each of them. .. SECTION 6: That the facsimile signatures or the ' Mayor and City Secretary may be lithographed or printed on the interest coupons attache~ to said bonds, and shall have the same ertect as if' they had been signed by them. SECTION 7: That the form of said bonds shall be substantially as follows: NO. __ _ UNITED STATES OF AMERICA STATE OP TEXAS . . COUNTY OF LUBBOCK CITY OF LUBBOCK, TEXAS, ELECTRIC LIGifl' SYSTEM REVENUE BOND, SERIES 1949 $1,000 FOR VALUE RECEIVED, the City of Lubbock, 1n the County of' Lubbock, sta te ··or Texas, hereby aclmowledges itselr in~ebted -to and promises to pay to bearer, as hereinafter stated, on the FIRST DAY OF MAY, 19 ____ , the sum of' ONE THOUSAND DOLLARS ($1,000), in lawful money of the United States or America, with interest thereon from the date hereof, at the rate or ----- ----------PER CENTUM ( __ ...~%) per annum, payable on November 1, 1949, and semi-annually thereafter on May 1st and November 1st in each year, upon presentation and surrender or • the coupons hereto appertaining as they severally become due. Both principal and interest shall be payahle at the FIRST . . NATION~L BANK IN DALLAS, DALLAS, TEXAS, and the said City of Lubbock, Texas~· is hereby held and firmly bound to apply the pledged appropriated revenues of its Electric Light System to the prompt paymant ot principal an~ interest or this bond at maturity, and to pay said principal and interest as they mature. THIS BOND is one or a series ot bonds or like tenor ' and effect, except as to number, interest rate and maturity, '· numbered from One (1) to Twenty-three Hundred (2300), both inclu- . . sive, in denomination of One Thousand Dollars ($1,000) each, aggregating the sum or two MILLION THREE HUNDRED THOUSAND DOLLARS ($2,300,000), (being the-second installment or "par~el of ·a -total authorized issue of $4,924,000 revenue bonds) ~ued for the pur- pose of improving, enlarging, extending and repairing the City•s Electric Light System, Waterworks System and Sanitary Sewer System, in accordance with the Constitution and laws of the State of Texas, particularly Article 1111 et seq., Revised Civil Statutes of 1925, 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 2nd day of December, 1947, and pursuant td an ordinance passed by the City Commission of said City and duly recorded in the Minutes of the City Cotrmds- sion. . AS PROVIDED in the ordinance hereinabove mentioned, the City reserves the right to redeem Bonds Number Q71 to 2300 , both inclusive, of this series (maturing on May 1st in each of the years 1960 to 1969, both inclusive) in whole or in part, on May 1, 1959, or on any interest payment date there- after, at par and accrued interest,; PROVIDED FURTHER, that if ' . less than all or said bonds are redeemed on any or such redemp- tion dates, 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 or redemption, signed by the qity secretary (specifying the serial numbers and amounts of bonds to be~deemed) 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, and should any bond or bonds not be presented for redemption pursuant to such notice the same shall cease to bear interest tram and after the date so fixed for redemption. THE DATE or this bond, in conformity with the or- dinance above mentioned, is May 1, 1949. • THIS BOND and the series of Which it is a part con- .. ·•. stitute special obligations of the City of Lubbock, and together -with such other bonds of the said total voted amount of $4,92~,000 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•s Electric Light System, after de- duction 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 agree that, being payable to bearer, this bond and each of the interest coupons atached, may be negotiated by delivery however possession may have been acquired, and that any subsequent holder· 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 prior holder. The City of Lubbock, its officers and the paying agent shall not be ~ected by any notice to the contraryo THE HOLDER hereof shall never have the right to de- -mand pay.ment of this obligation out of any funds raised, or to be raised, by taxation. 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 re- quired to exist and to be done precedent to and 1n 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 men- tioned, and 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 of and interest on this bond and the series of which it is a part by irrevocably pledging the revenues or said Electric 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 ·counter- signed 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. Mayor, city of Lubbock, Texas. COUNTERSIGNED: e!£y secretary, City of Lubbock, Texas. SECTION 8: The form of said interest coupons shall . . be substantially as follows: '· Nd. ---ON THE ---DAY OF 19 ----- $ __ _ the CITY OF LUBBOCK, TEXAS, hereby promises to pay to the bearer, . . . out or funds specified 1n the bond to which this coupon is attach- ed, and in lawful money of the United States of America, at the I i FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS, the sum of - - - - -DOLLARS {$ ),~d sum being six months' interest that day due on ---- "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BOND, . . ... . SERIES 1949", ~dated May 1, 1949. Bond No·. ---· City Secretary Mayor SECTION 9: Substantially the following for.m of Comptroller's certificate shall be printed on the back of each bond: OFF~CE OF COMPTRO~~R I STATE OP 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 confor.mity with the Constitution and laws or 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 pay- ment 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, SECTION 10: Comptroller or Public Accounts of the State of Texas. That the following is a schedule of prin cipal and interest requirements, showing also the total annual re- quirements of said "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS, SERIES 1949", that is to ,-say -- / I J YEAR ENDING MAY 1 1950, 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 l . PRINCIPAL (_ $85,000 85,000 90,000 90,000 95,000 100,000 100,000 105,000 110,000 110, 000 115,000 120,000 120,000 125,000 130,000 135,000 140,000 145,000 150,000 150,000 \ (LPID INTEREST ~ . . I~ -r $57, 50? .. 55,375 53,250 51,000 48,750 46,375 43,875 41,375 38,750 36,000 33,250 30,375 27,375 24,375 21,250 18,000 14,625 11,125 7,500 3,750 TOTAL ANNUAL REQUIREMENTS $142,500 140,375 143,250 141,000 143,750 146,375 143,875 146,375 148,750 146,000 148,250 150,375 147,375 149,375 151,250 153,000 154,625 156,125 157,500 153,750 / Average annual Principal and Interest Requirement •.• $148,193.75 No mistake in the foregoing calculations shall in any manner operate to diminish the payment of the amounts to be- come due on said bonds, but an amount is hereby ordered to be set aside for each of the years specified, sufficient in all respects to meet the requirements thereof. SECTION 11: The City of Lubbock covenants and re- affirms that, as received, all operating income~d revenues of it Electric Light System shall be first deposited in an account / designated the "Electric Light System Fund", kept separate and part from all other funds or accounts, and further that said "Electric Light System Fund 11 shall be pledged and appropriated to the following uses and in the order of precedence shown: First: To the payment of all necessary and reasonable expenses of opeation and maintenance of the Electric Light System as said expenses are defined by statute. Second: To the "SPECIAL ELECTRIC LIGHT SYSTEM . . . REVENUE BOND FUND" heretofore created, and hereby re- .. affirmed, for the payment of principal and interest of the bonds heretofore authorized by the aforesaid ordin- ance of February 26, 1948, equally with the bonds herein -authorized, when andas the same fall due or mature, and to be used for no other purpose. Third: To any other proper City purpose now or hereafter permitted by law. The following provisions shall govern the creation and maintenance of the aforesaid 11 SPECIAL ELECTRIC LIGHT SYSTEM REVE BOND FUND 11 ; The entire net income and revenues of the Electric Light . - System remaining after operation and maintenance expenses are de- ducted have been heretofore and are hereby reaffirmed to be irre- vocably 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 and heretofore authorized as such total requirements are shown • 1D the schedule relating thereto, as set out in Section 10 of the . aforesaid ordinance of February 26, 1948, and 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 20% of the average total annual requirements as above shown, sai.d Special Fund to be continuously supplemented by said additional amounts until such time aa said Special Pund is equal in amount to the sum re- quired to fully meet and discharge the principal and interest installments falls due on or before the next succeeding principal maturity date plus a sum equal to the average total annual re- quirements tor one full year in advance as a reserve tor use in meeting the requirements of the bonds heretofore and herein authorized, if need be, and that this arrangement shall continue and said Special Pund shall be continuously supplemented as necessary to maintain said reserve until said bonds with all interest thereon have been fully paid and discharged, or until such time as the special fund, plus said reserve, shall contain am un 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 11 Electric Light System Fundn, and shall deposit them in said . . 11 SPECIAL ELECTRIC LIGHT SYSTEM REVENUE BOND FUND 11 in equal ~onthiy instai~ent~ o~ or before the 15th day of each month. The FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS (the paying agent 0 • • a .. ... named herein and in the bonds and interest coupons authorized heretofore and hereby) is hereby designated and reaffirmed as the custodian of said Special Fund, and the deposits above pres- cribed shall be transmitted to said fund with said FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS. In the event that the income and revenues of the City's Electric Light 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 or any deficiency shall be added to the amount otherwise required to / \ l / be deposited in said fund in the next month, until all deficiencies are rectified. Any funds remaining on band 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 referred to in .the foregoing paragraphs may be used by the City for any purpose which may now or hereafter be permitted by law. For all purposes of this ordinance and in particular wit respect to the pledge and appropriation of revenues herein pres- cribed, the "ELECTRIC 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 1n connec- tion 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, reafiirms and agrees that, so long as any of the revenue bonds and coupons authorized by the ordinance of February 26, 1948, and by this ordinance, remain outstanding 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 ~~arges of said System; and (2) Establish and fully maintain .the above pres- cribed "SPECIAL ELECTRIC LIGHT SYSTEM REVENUE BOND FUND". / ..._/ SECTION 13: The City further covenants, reaffirms and agrees by ~nd through this ordinance as follows: (a) That the revenue bonds authorized hereunder and by the ordinance of February 26, 1948, shall be -special obligations ot the City, and the holder thereof shall never have the right to demand payment out ot tunds raised,or to be raised, by taxation; (b) That it has the lawful power to pledge the revenues supporting this issue ot bonds and tbe bonds authorized under the atoresaid ordinance of Pebruary 26, 19,8, and bas lawfully exercised said power Under the Constitution and laws ot the State ot Texas, including power existing under Articles 1111 to lll8, both inclu- sive, 1925 Revised Civil Statutes ot the State ot Texas, with amendments thereto, and by authority ot a vote ot the qualified electors ot said City, voting at an elec- tion held on the 2nd day ot December, 1~7; that the . . bonds issued hereunder and by the ordtance.ot February 26 ~ 1948, shall be ratably secured, under said pledge ot income, in such manner that one bond shall have no preference over any other bond of said issue; and (c) That, other than tor the payment ot the bonds hereby and heretofore issued, the rents, revenues and tncame ot the said Electric Light System have not been in any manner pledged to the payment or any debt or ·obligation ot the City and/or said system; and that said Electric Light System is tree and .. clear ot all en- .. . ... cumbrances whatsoever. / '• \ SECTION 14: That the City or Lubbock hereby agrees and reatarms, ror the benerit of the holders or the bonds, to carry insurance on the Electric Light System of the kinds and 1n . the amounts which are usually carried by private companies operat- ing similar properties. All moneys received for losses under such insurance policies, other than public liability policies, are hereby pledged by the City or 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 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 tor all insurance policies required under the provisions of this Section shall be considered to be maintenance and operating expenses. SECTION 15: The City Commiaion hereby reaffirms and for the purposes hereof readopts its directions to the Mayor and City Secretary, as contained in the aforesaid ordinance of February 26, 1948, 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 or the Regular Session of the Forty·eighth Legislature; the fiscal year for the operation of such system shall be April lst to March 31st of each year; and the holder or holders of twenty-five per centum (25~) in aggre- gate principal amount of said bands 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 and / '• J reaffirms that it will within sixty days following the close of each fiscal year cause an audit ot such books and accounts to be made by an independent firm of certified public accountants, showing the receipts and disbursements for account of the system, and that such audit will be available for inspection by the hold- ers 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: _!. A statement in detail of the income and expen- ditures of the System for such fiscal year. 2. A balance sheet as of the end of such fiscal year.· ; J. The accountant • s comment regarding the manner in which the City has carried out the requirements ·or this ordinance, and the accountant's recommendation for any change or improvements in the operation of the System • . ~. A list of the insurance policies in force at the end of the fiscal year, setting out as to each policy the amount ot the policy, the risks covered, the name of the insurer and the expiration date ot the policy. ,2. The number of properties connected 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 custo- mers at the end or the year. All expenses incurred in the making of the audits re- quired by this Section shall be regarded and paid as a maintenance / and operation expense. The City of Lubbock further reaffirms its -agreement 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 tor such additional information as he may reasonably require SECTION 16: That the City of Lubbock further covenants -and agrees and reaffirms with the holder or holders of said bonds from time to time, or any of them, that it will maintain and operate the System with all possible efficiency while any ot the ~~· bonds remain outstanding and unpaid and that it will faithfully and punctually perform 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 tor electric light service supplied by the System, and segre- gating and application of the revenues of the System as required by the provisions of this ordinance and the ordinance of February 26, 1948. The City covenants and agrees and reaffir.ms that no free services shall be rendered by the System to any customers, i .ncluding 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, reaffirms, binds and obligates 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 ~hat may be made thereto, until the bonds herein and heretofore 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 judgment 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 aggregate shall not exceed $774,000 {being the balance of the $.4.924,000 authorized but not provided to be issued by this ordinance and by the ordinance of February 26, 1948) when and as issued by proper ordinance or ordinances of the City Com- mission 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 and heretofore provided to be issued or those sub- sequently 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 $774,000 voted at the election of December 2, 1947, but not heretofore or hereunder issued, shall be issued or sold until such time as the average ------..........;;;;.... annual ~ revenues ~ ~~! ~stem .!.:!!.. t l}! ~fiscal _t,!.aX:~ imme- diately preceding the issuance and sale of such additional bonds, ---_.....,...___ .... ----___ ... after deducting all costs of operating $nd maintaining the System, are certified by a certified public accountant to be equal to at ----- least one and one-half times the ~verage annual requirements of '-,...-. .,.,.,.....-. ----_..,._,._ ... ............,., 4 4MWL I~M•'--~~~ principal and interest on the then outstanding bonds of the series heretofore and herein authorized to be issued and such additional bonds then proposed to be issued. SECTION 19: The City of Lubbock further covenants, . - reaffirms and agrees that while any of the bonds of the said total principal amount of $4,924,000 voted at the said election of December 2, 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 ex- / pressly understood and agreed that any further obligations payable from the revenues of said System or any part thereof shall be Junior and subordinate'J in all respects. The provisions of this section shall be subject only to the following exceptions; that if, prior to the payment and dis- charge of all outstanding bonds of the voted principal amount of $4,924,000 bonds heretofore, 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 such refunding bonds shall continue to enjoy the same priority of lien over any o~her 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 outstanding 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 or any of the bonds not refunded, then such bonds may not be refunded without the consent of the holders of the unrefunded portion of the bonds then outstanding of the authorized voted amount or $4,924,000. SECTION 20: That so far as it lega~ly may, the City of Lubbock covenants, reaffirms and agrees, for the protection and security of the bonds herein authorized and authorized by the ordinance of February 26, 1948, and the holders thereof 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 thereto shall have been retired. SECTION 21: That the sale of the bonds herein authorized to -- FIRST SOUTHWEST COMPANY, 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 pay- ment 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 authorize 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 provide , 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 COMMISSION OF THE CITY OF LUBBOCK: The fact that it is to the best interest of the City that the authorized construction of improvements, enlargements, extensions and repairs to the City's Electric Light Sytem, 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 Cityta above mentioned Systems, demanding that the Charter provision 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 declared an emergency measure by unanimous vote of the City Com- mission, and the same shall take effect from and after its passage, and it is so ordained. PASSED AND APPROVED, this the 28th day of April, 1949. ATTEST: -~ r U 'L///o. City eehlar:y, ~OCk, Texas. · (City seal) I / ., ..... CERTIFICATE OF CITY SECRETARY THE STA 'l'E OF TEXAS I COUNTY 0'1 LUBBOCK CITY OF LUBBOCK I, Lavenia Lowe, City Secretary or the City or Lubbock, Texas, DO HEREBY CERTIFY that the above and forego- ing is a true and correct copy or an ordinance authorizing the issuance or $2,300,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS, SERIES 1949", passed by the City Com- mission or said City on the 28th day or April, 1949 (and Minutes pertaining to its adoption), and that it has been properly enrolled, placed 1n the office or the City secretary, and approved by the Mayor, having been recorded 1n Book a , ' . page 1 458 et seq.; or the Minutes or said Commission. IN WITNESS WHEREOF, I have hereunto signed my name orticially and affixed the seal or said City, this the 28 day or April, 1949. .. (City Seal)