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HomeMy WebLinkAboutOrdinance - 1050-1950 - Issuance Of $774,000 Electric Light System Revenue Bonds - 12/28/1950ill .......... u.~~ .. -- ORDINANCE #1050 -12/28/50 (Bond Election of 12/2/47) - lZ-::z8 .. [9!ED JOSO AN ORDINANCE AUTHORIZING ISSUANCE OF $774,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS, SERIES 195111 , DATED JANUARY 1, 1951 THE STAOFTE OF TEXAS I COUNTY OF LUBBOCK CITY LUBBOCK - ON THIS, the "'beT day of December, 1950, the City Commission ~r the City or Lubbock, Texas, convened in~ fv UL..A ~ session at the regular meeting place thereof 1n the City Hall, with the following members present, to-wit: CLARENCE K. WHITESIDE, MAYOR, Presiding; LUCIAH THOMAS, I E. K. HUFSTEDLER, L. E. DAVIS, HARRY MORRIS, COMMISSIONERS, and MRS. LAVEHIA LOWE, C I'l'Y SECRETARY and with the following absent: tJ otJ~ --~--~----------------------' constituting a quorum; when, among other proceedings had, were the following: Commissioner M c% B.\..!> presented for the con- sideration or the City Commission an ordinance authorizing the issuance of $774,000 "City of Lubbock, Texas, Elect!-ic Light System Revenue Bonds, Series 1951", dated January 1, 1951 (being the third and final parcel or installment or 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, COIIID1ss1oner l>~V\..S moved that the rule requiring that no ordinance shall be ,assed on the day on which it is introduced be suspended, and that in view or 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 CODUilissioner :r '!\o M A~ was duly carried by the following vote: • This motion AYES: Commissioners Thomas, Hufstedler, Davis and Morris, and Mayor Whiteside. HOES: None. Thereupon, the Mayor announced that the proposed or- dinance had been declared an emergency measure by unanimous vote of tbe Commission. Thereupon, Commissioner f ~ o" 1\ J~ 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 b ~V l ~ , and the motion, carrying with it the final passage and adoption of the ordinance, was unani- mously carried by the following vote: AYES: Commissioners Thomas, Hufstedler, Davis and Morris, and Mayor Whiteside. NOES: Hone. Thereupon, the Mayor announced that the ordinance had been finally passed and adopted by unanimous vote of the Commis- sion in accordance with the requirements or sections 15, 16 and 17 of Article IX, of the Lubbock Charter; and the Mayor thereupon signed an~ approved the ordinance in the presence of the Commis- sion. The ordinance is as follows: / "AN ORDINANCE by the City Commission of the City of Lubbock, Texas, authorizing the issuance or $774 1 000 'City or Lubbook, Texas, Electric 41ght System Revenue Bonds, Series 1951', dated January l, 1951, (being the third and final parcel or installment or a total voted authorization or $4,924,000 bonds), tor the purpose or constructing improvements, enlargements, extensions and re- pairs to the City's Electric Light System, Water- works System and Sanitary Sewer System; as author! zed by the General Laws ot the State ot Texas, particularly Articles 1111 et seq., Revised Civil statutes or 1925, as amended; prescribing the rorm ot the bonds and the form ot interest coupons; pledging the revenues or the City's Electric Light System to the payment ot the principal ot and in- terest on the bonds, after deduction or reasonable · expenses or operating and maintaining said system; enacting provisions incident and relating to the subject and purpose or this ordinance; and de- claring an amergency.11 WHEREAS, under and by virtue or an ordinance duly passed and adopted by the City Commission of the City or Lubbock, Texas, on the 13th day of November, 1947, an election was order- ed to be held 1n said City on the 2nd day of December, 1947, at which tlection the following propositions were submitted to the qualified electors or said City: PROPOSITION HUMBER 1 "SHALL the City Conmission of the City of Lubbock, Texas, be authorized to issue the revenue bands of said City 1n the principal sum of TWO MILLION ONE HUNDRED EIGHTY FIVE THOUSAND DOLLARS ($2,185,000), maturing serially or otherwise, with ten (10) year option to call, over a period ot years not to exceed twenty (20) years tram the d&te thereot, bearing interest at the maximum rate of THREE AND THREE-FOURTHS PER CEHTUM (3-3/~) per aMum, -ror the purpose o.f constructing 1Jilprovements, enlargements, extensions and repairs to the City's Electric Light System, as authorized by·the General Laws of the State of Texas, particularly Articles 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 ot the City's Electric Light System for the purpose of securing the payment of principal or and interest on said bonds, said encumbrance or said revenues to be an exclusive first lien on and pledge of said revenues atter deduction of I the reasonable expenses ot operating and maintaining said Electric Light System, as said expenses are defined by statute?" PROPOSITION NUMBER 2 "SHALL the City Commission ot the City of Lubbock, Texas, be authorized to issue· the revenue bonds of said City in the principal sum of TWO MILLION THREE HUNDRED AKD 'l'HIRTEEX THOUSAND DOLLARS ( $2 ,313 1 000) maturing serially or otherwise, with ten (10) year option to call, over a period ot years not to exceed twenty (20) years trom the date thereof, bearing interest at the maximum rate or THREE ARD THREE-POURTHS 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 ot the State or Texas, particularly Article 1111 et seq., Revised Civil Statutes of 1925, as amended, said bonds to be special obligations of the City ot Lubbock, Texas, payable as to both principal and interest solely traa the revenues ot the City's EleQtric Light system, and shall the City Commis-sion be authorized to encumber the revenues or the City's Electric Light System tor the purpose or securing the payment or principal of and interest on said bonds, said encumbrance of said revenues to be an exclusive first lien on and pledge ot said revenues after deduction ot the reasonable expenses ot operating and maintaining said Electric Light System, as said expenses are defined by statute?" PROPOSITION NUMBER 3 11SHALL the City Commission ot the City or Lubbock, Texas, be authorized to issue the revenue bonds or said City 1n the princifl sum ot FOUR HUNDRED TWENTY SIX THOUSAND DOLLARS ( 426 1 000), maturing serially or other- wise, with ten (10 year option to call, over a period ot years not to exceed twenty (20) years from the date thereot, bearing interest at the maximUIIl rate or THREE AND THREE- FOURTHS PER CENTUM (3-3/~) per annum, tor the purpose of constructing improvements, enlargements, extensions and re- pairs to the City's Sanitary Sewer System, as authorized by the General Laws ot the State of Texas, particularly Article 1111 et seq.1 Revised Civil Statutes or 1925, as amended~ said bonds to be special obligations of the City of Lubbock, Texas1 payable as to both principal and interest solely rro.m the revenues of the City's Electric Light Sy~tem, 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 ot principal ot and interest on said bonds, said encumbrance of said revenues to be an exclusive first lien on and pledge of said revenues atter 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 or the returns or said election, the City Commission round that said election had been conducted in the manner prescribed by law, and was in all respects legally held, atter due and proper notice as re- quired by law; that due returns or said 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 tavor or the issuance ot said bonds; and that the City Commission is 1n all things authorized to issue said bonds and to do any and all things necessary and/or convenient in connection therewith; and WHEREAS, it was further provided in said ordinance passed and adopted by this City Commission on th' 13th day or November, 1947, ordering said election, that all revenue bonds or the three series therein mentioned are to be ratably secured in such manner that no one bond shall have priority or lien over any other bond, it being the intention to provide tor the creation ot an indebtedness against the City's Electric Light System Revenues tor the purposes therein stated, and which bonds, if appr~ved 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 11 ; and v.HEREAS, by an ordinance duly passed and adopted by this City Commission on the 26th day ot February, 1948, $1,850,000 or the bonds voted as aforesaid, were authorized, issued and sold, it being determined by said City Commission at ~hat t~e that it was not then desired to issue all of the bonds in the aggregate amount or $4,924,000 voted tor on the propositions as atoresai4, and that the remaining amount or 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 ot the City Commission or said City, the amount thereof sho~ld be needed by the City ror the purposes tor which it was authorized; it being also further provided that it and when the remaining $3,074,000 bonds, or any portion thereot, should be issued and sold, said bonds so issued and sold, to- gether with the $1,850,000 therein authorized to be issued, should be ratably secured by pledge or the revenues or the City's Electric Light System 1n such manner that no one bond of the total authorized amount ot $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 au- thorized at said election, until such time as the average annual net revenues or the System tor the two fiscal years immediately preceding the issuance and sale ot such additional bonds, after deducting all costs of operating and maintaining the System, are certified by a certified public accountant to be equal to at least one and one-halt times the average annual requirements or principal and interest on the then outstanding bonds or the series therein authorized to be issued and such additional bonds then proposed to be issued; and WHEREAS, by an ordinance duly passed and adopted by this City Commission on the 28th day of April, 1949, $2,300,000 ot the bonds voted as aforesaid, were authorized, issued and sold, it being determined by said City Commission at that time that it was not then desired to issue all or the bonds remaining unissued, in the aggregate amount of $3,074~000, voted for on the propositions as aforesaid, and that the remaining amount of said bonds, to-Wit: $774,000 should be issued in one or more series at a future date or dates when, in the Judgment of the City Commission of said City the amount thereot should be needed by the City for the purposes tor which it was authorized; it being also further provided that it and when the remaining $774,000 bonds, or any portion thereof, should be issued and sold, said bonds so issued and sold, together with the $1,850,000 bonds authorized by the qrdinanee or February 26, 1948, and to- gether with the $2,300,000 bonds therein authorized to be issued, should be ratably secured by pledge of the revenues or the City's Electric Light System in such manner that no one bond of the total authorized amount ot $4,924,000 shall have priority ot lien over any other bonds; and it being also further provided that the City shall not issue and sell any or such remaining bonds authorized at said election, until such ttme as the average annual net revenues of the System tor the two fiscal years ~ediately preceding the issuance and sale of such additional bonds, after deducting all costs ot operating and maintaining the System, are certified by a certified public accountant to beequal to at least one and one-halt times the average annual requirements of principal and interest on the then outstanding bonds or the two series theretofore issued, and such ~dditional bonds then proposed to be issued; and WHEREAS, it is now round and determined by the City Commission that the average annual net revenues ot the Electric Light System ot the City ot Lubbock, Texas, tor the two fiscal years immediately preceding the sale of the bonds hereinafter authorized, and being tor the fiscal years ending March 31, 1949, and March 31, 1950, respectively, atter deducting the reasonable cost of operating and maintaining the Electric Light system, have been certified by J. T. TALKINGTON, a certified public accountant, to be equal to at least one and ODe-halt ttmes the average annual requirements ot principal and interest on the $1,850,000 "CITY OF LUBBOCK1 TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS, SERIES 1948", dated March 1, 1948; on the $2,300,000 "CITY OF LUBBOCK 1 TEXAS, ELECTRIC LIGHT SYS'mM REVENUE BONDS, SERIES 1949", date4 May l, 1949; and on the $774,000 additional bonds herein authorized to be issued; and WHEREAS, it is now found and determined by the City Commission ot the City of Lubbock, and is its judgment ·that the unissued balance of said voted amount of bonds, to-wit: $774,000, should now be issued and sold to provide funds tor the purpose tor which such bonds were voted; 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, thereby creating this an emergency measure tor the immediate preservation ot the public peace, property, health and satety, as well as a more efficient administration and operation or said systems and of 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 or SEVEN HUNDRED SEVENTY-FOUR THOUSAND DOLLARS ($774 ,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 ot Lubbock, Texas, by virtue of authority expressly conferred by the qualified electors or said City, at the aforesaid election, and pursuant to the General Laws of the State or Texas, particularly 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 or coupon bonds in the total principal amount of $774,000 {being the third and final parcel or installment of a total voted authorization or $4,924,000), and to be designated "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVE.NUE BONDS, . SERIES 195111 , payable as to both principal and interest solely lo trom and secured by an exclusive lien on and pledge of the revenues of the City•s Electric Light System, atter deduction -ot reasonable expenses or operating and maintaining the said Electric Light System, as said expenses are defined by statute. SECTION 2: . That the said bonds shall be dated January 1, 1951; shall be numbered consecutively from One (1) to Seven Hundred Seventy-four (77-), both inclusive; shall be in denan1nation of One Thousand Dollars ($1,000) each, aggre- gating the sum of $774~000; shall bear interest as hereinafter set forth; and shall become due and payable serially in ac- cordance with the following schedule: BOND NUMBERS (All Inclusive) 1 to 30 31 to 61 62 to 93 94 to 126 127 to 159 160 to 193 194 to 228 229 to 264 265 to 301 ... 302 to 339 340 to 378 379 to 418 419 to 459 460 to 501 502 to 544 545 to 588 589 to 633 634 to 679 680 to 726 727 to 774 MATURITY DATE_$ January 1· .. 1952 January 1, 1953 January 1 .. 1954 ·January 1, 1955 January 1, 1956 January 1 .. 1957 January 1, 1958 . January 1, 1959 January 1 .. 196o January 1., 1961 January 1, 1962 January 1, 1963 January 1, 1964 January l, 1965 January 1, 1966 January 1, 1967 January 1, 1968 January 1, 1969 January 1, 1970 January 1, 1971 AMOUNTS $30 .. 000 31,000 32,000 33,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000 40,000 41 .. 000 42 .. 000 43,000 44,000 45 .. 000 46,000 47,000 48 .. 000 PROVIDED, HOWEVER, that the City reserves the right to redeem Bonds Numbered 340 to 774, both inclusive, or this series, (maturing on January 1st in each or the years 1962 to 1971, both inclusive), in whole or in part, on January 1, 1961, or on any interest payment date thereafter, at par and accrued interest; PROVIDED, FURTHER, that if less than all ot said bonds are redeemed on any such redemption 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 of redemption, 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 AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, CHICAGO, ILLINOIS, (the paying agent named in each of said bonds), and should any bond or bonds not be 1 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-FOURTH PER CENTUM (2f%) per annum, such interest to be evidenced by proper coupons attached to each of said bonds; and said interest shall be payable on July 1, 1951, and semi-annually thereafter on January 1st and July 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, without exchange or collection charges to the owner or holder, at the AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, CHICAGO, ILLINOIS, upon presentation and surrender ot 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 corpor~te seal of the 11CITY OF LUBBOCK, TEXAS 11 , shall be impresse 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 attached to said bonds, and shall have the same effect as 1f 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 OF TEXAS COUNTY OF LUBBOCK CITY OF LUBBOCK., -TEXAS., ELECTRIC LIGHT SYSTEM REVENUE BOND., SERIES 1951 $1,000 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 JANUARY 19_, the sum of ONE THOUSAND DOLLARS {$1,000), in lawful money of the United States of America, without exchange or collection charges to the owner or holder, with interest thereon from the date hereof, at the rate of TWO AND ONE-FOURTH PER CENTUM (2~} per annum, payable on July 1, 1951, and semi-annually thereafter on January 1st and July 1st in each year, and interest falling due on or prior to maturity hereof is payable only upon presentation of the interest coupons hereto attached as they severally become due. Both principal and interest shall be payable at the AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, CHICAGO, ILLINOIS . and the said City of Lubbock, Texas., is hereby held and firmly bound to apply the pledged appropriated revenues or its Electric Light System to the prompt payment of principal and interest of this bond at maturity, and to pay said principal and tnteres~ as they mature. .. THIS BOND is one ot a series of bonds of like tenor and effect, except as to number, maturity and right ot prior redemption, numbered trom One (1) to Seven Hundred Seventy-Four (774), both inclusive, in denomination ot One Thousand Dollars ($1,000) each, aggregating the sum or SEVEN HUNDRED SEVENTY- FOUR THOUSAND DOLLARS ($774 ,000), (being the third and final parcel or installment of a total voted authorization ot $4,924,000 revenue bonds), issued tor the purpose ot improving, enlarging, extending and repairing the City's Electric Light System, Waterworks System and Sanitary Sewer System, in accor- dance with the Constitution and laws of the State of Texas, particularly Article 1111 et seq., Revised Civil Statutes ot 1925, as amended, and by authority ot a vote ot the qualified property taxpaying voters of said City, who had duly rendered their property tor taxation, voting at an election held tor that purpose within said City on the 2nd day or December, 1947, and pursuant to an ordinance passed by the City Commission ot said City and duly recorded in the Minutes of the City Commission. AS S~ECIFIED by the ordinance hereinabove mentioned, the City reserves the right to redeem Bonds Numbered 340 to 774, both inclusive, of this series, (maturing on· January 1st in each ot the years 1962 to 1971, both inclusive), 10 whole or in part, on Januar.y 1, 1961, or on any interest payment date thereafter, at par and accrued interest; PROVIDED, HOWEVER, that it less than all of said bonds are redeemed on any such redemption 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 ot said bonds are to be redeemed, notice ot redemption, 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 or Texas, and shall have been filed with the AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, CHICAGO, ILLINOIS, 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 or- dinance above mentioned, is January 1, 1951. THIS BOND and the series of which it is a part, constitute special obligations of the City of Lubbock, and to- gether with all other outstanding bonds of the total voted authorization of $4,924,000 heretofore issued and sold, are payable as to both principal and interest from and equally secured by an exclusive first lien on and pledge of the revenues . of the City's Electric Light System, after deduction of reason- able 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 attached, may be negotiated by delivery however possession may have been acquired, and that any subsequent holder who may re- ceive· 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 affected by any notice to the cont.rary. THE HOLDER hereof shall never have the right to demand payment ot this obligation out of any funds raised, or to be raised, by taxation. AND IT IS HEREBY CERTIFIED AND RECITED that the issuance or 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 ot 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 ot the State of Texas, and the ordinance hereinabove men- tioned, and that this series ot revenue bonds does not exceed any constitutional or statutory limitationsj and that provision has been made tor the payment of the principal of and interest on this bond and the series or which it ~s a part, by irrevocably pledging the revenues of said Electric Light System of said City of Lubbock. IN TESTIMONY WHEREOF, the City Commission of the City ot LUbbock has caused the seal of said City to be hereon impressed and this bond to be signed by the Mayor ot said City and counter- signed by the City Secretary, and has caused the annexed coupons to be signed by the lithographed or printed tacs~ile signatures ot the Mayor and City Secretary. COUNTERSIGNED: City Secretary, City of Lubbock, Texas 1\ SECTION 8: The form of said interest coupons shall be substantially as follows: NO._ ON THE DAY OF 19_ unless the bond to which this coupon pertains has been properly called f'or redemption in accordance with its terms, 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 or the United States of America, without exchange or collection charges to the owner or holder, at the AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, CHICAGO, ILLINOIS, the sum of ----------------DOLLARS ($ __________ ), said sum being ______ months' interest due that day on 11CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BOND, SERIES 195111 , dated January l, 1951. Bond No. _. City Secretary Mayor SECTION 9: Substantially the following form of Comptroller's Certificate shall be printed on the back of each bond: OFFICE OF COMPTROLLER STATE OF TEXAS I 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 h~ 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 Cit I ~ 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 HAMD AID SEAL OF OFFICE at Austin, Texas, __ ..,:;_. ___ . Comptroller of Public Accounts of tbe State of Texas. SECTION 10: That the following is a schedule of principal and interest requirements, showing also the total ann- ua1 requirements of said "CITY OF LUBBOCK, TEXAS, EU.:CTRIC LIGHT SYSTEM REVEmJE BONDS, SERIES 1951n, that is to say -- YEAR ENDING TOTAL ANNUAL JANUARY 1 PRINCIPAL INTEREST REQUIREMENTS 1952 $30,000 $17,415.00 $47,415.00 1953 31,000 16,740.00 47,740.00 1954 32,000 16,042.50 48,042.50 1955 ~,000 15,322.50 48,322.50 1956 33,000 14,580.00 47,580.00 1957 34,000 13,837.50 47,837.50 1958 35,000 13,072.50 48,072.50 1959 36,000 12,285.00 48,285.00 1960 37,000 11,475.00 48,475.00 1961 38,000 10,642.50 48,642.50 1962 39,000 9,787.50 48,787.50 1963 40,000 8,910.00 48,910.00 1964 41,000 8,010.00 49,010.00 1965 42,000 7,087.50 49,087.50 1966 43,000 6,142.50 49,142.50 1967 44,000 5,175.00 49,175.00 1968 45,000 •'·4 ,185.00 4 [,12.1. off 4 ,185.00 1969 46,000 3,172.50 49,172:50 1970 47,000 2,137.50 49,137.50 1971 48,000 1,080.00 49,080.00 \ ~ Ho mistake in the foregoing calaulations shall 1n any manner operate to diminish the payment of the amounts to become due on said bonds, but an amount is hereby orde~ed to be set aside tor each of the years specified, sufficient 1n all respects to meet the requirements thereof. SECTION 11: The City of Lubbock covenants and re- affirms that, as received, all operating income and revenues or its Electric Light System shall be first deposited in an account designated the "Electric Light System Fund,., 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 or precedence shown: First: To the payment of all necessary and reasonable expenses or operation and maintenance of the Electric Light System as said expenses are de- fined by statute. Second: To the "SPECIAL ELECTRIC LIGHT SYSTEM REVEJIUE BOND Ii'URD" heretofore created, and hereby re- affirmed, tor the payment of principal and interest ot the bonds heretofore authorized by the aforesaid ordin- ances or February 26, 1948, and April 28, 1949, equally with the bonds herein authorized, when and as the same tall due or mature, and to be used tor 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 ot the atoresaid "SPECIAL ELECTRIC LIGHT SYSTEM REVENUE BOND FUND 11 : '" The entire net income and revenues or the Electric Light System remaining after operation and maintenance expenses are deducted have been heretofore and are hereby reaffirmed to be irrevocably pledged to the said "SPECIAL ELECTRIC LIGHT SYSTEM REVENUE BOND FUND " 1n amounts sufficient to produce the total annaul principal and interest requirements of the revenue bonds herein and heretofore authorized as such total requirements are shown 1n the schedules relating thereto, as set out in Section 10 of the aforesaid ordinance o~ February 26, 1948, in Section 10 of the aforesaid ordinance or April 28, 1949, and in Section 10 of this ordinance i AND 11 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 2~ ot the average total annual requirements as above in- dicated, said Special Fund to be continuously supplemented by 1 said additional amounts until such time as said Special Fund is equal 1n amount to the sum required to tully meet and discharge the principal and interest installments falling due on or before the next succeeding principal maturity date plus a sum equal to the average total annual requirements tor one full year 1n ad- vance. It is hereby declared to be the City's purpose and in- tent, and said City so covenants, that the amount to be maintained in said Special Fund shall be continuously in excess or any par- ticular current year's requirements by an amount equal to the average total annual requirements of said bonds, for one full year, as a reserve tor use in meeting the requirements ot the bonds heretofore and herein authorized, it need be, and that this arrangement shall continue and said Special Fund shall be con- tinuously supplemented as necessary to maintain said reserve until said bonds with all interest thereon have been tully paid (\ and discharged, or until such time as the Special Fund, plus said reserve, shall contain 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 a~ounts thus determined from the aforementioned 11Electric Light System Fund", and shall deposit them in said 11SPECIAL ELECTRIC LIGHT SYSTEM REVENUE BOND FUND" in equal monthly installments on or before the 15th day of each month The AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, CHICAGO, ILLINOIS (the paying agent named herein and in the bonds and interest coupons herein authorized) is hereby designated as the custodian of said Special Fund, and the deposits above prescribed shall be transmitted to said fund with said AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO., CHICAGO, ILLINOIS. In the event that the income and revenues of the City's Electric Light System are insufficient in any month to pe~1t 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 deficien- cies are rectified. Any funds remaining on hand as the proceeds of the operating income and revenues of the City1 s Electric Light Sys- tem, after first making full provisions for the purposes and fund refer~ed to in the foregoing paragraphs may be used by the City for any purpose which may now or hereafter be pe~itted by law. For all purposes or this ordinance and in particular with respect to the pledge and appropriation of revenues herein prescribed, the 11ELECTRIC LIGHT SYSTEM " of the City of Lubbock \~ I 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, reaffirms and agrees that, so long as any of the revenue bonds authorized by the ordinance of February 26, 1948, the ordinance of April 28, 1949, 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 charges and expenses ot said System; and (2) Establish and fully maintain the above pres- cribed "SPECIAL ELECTRIC LIGHT SYSTEM' .REVENUE BOND FUND". ~~9TI,ON 13: The City further covenants, reaffirms and agrees by and through this ordinance as follows: (a) That the revenue bonds authorized hereunder and by the ordinances of February 26, 1948 and April 28, 1949, shall be special obligations or the City, and the holder thereof shall never have the right to demand payment out of any funds raised, or to be raised by taxation; (b) That it has the lawful power to pledge the revenues supporting this issue or bonds and the bonds authorized under the aforesaid ordinances of February 26, 1948 and April 28, 1949, and has lawfully exercised said power under the Constitution and laws of the State of Texas, including power existing under Articles 1111 to 118, both inclusive, 1925 Revised CiVil Statutes of the State or 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 and by the ordinances of February 26, 1948 and April 28, 1949, shall be ratably secured, under said pledge of income, in such manner that one bond shall have no preference over any other bond or said issues; and (c) That, other than for the payment of the bonds hereby and heretofore issued, the rents, revenues and in- come of the said Electric Light System have not been in any manner pledged to the payment or any debt or obligation of the City and/or said System; an~ that said Electric Light System is free and clear of all encumbrances whatso- ever. SECTION 14: That the City of Lubbock hereby agrees and reaffirms, for the benefit of the holders of the bonds, to carry insurance on the Electric Light System of the kinds .and in I "v-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 of Lubbock as security tor the bonds until and unless the proceeds are paid out 1n 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 go~d such loss and damage made within ninety days from the date of the loss. The payment or premiums tor all insurance policies required under the provisions of this Section shall be considered to be main- tenance and operating expenses. SECTI,ON 15: The City Commission hereby reaffirms and tor the purposes hereof readopts its directions to the Mayor and City secretary~ as contained in the aforesaid ordinances of February 26, 1948 and April 28, 1949~ 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 tor 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 Legislature; the fiscal year tor the operation of such system shall be October 1st to September 30th of each year (commencing October 1~ 1950); 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 in- spect 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 reaffirms that 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 independent firm of certified public accountants, showing the receipts and disbursements for account of the System, and that such audit will be available tor 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: l. A statement in detail of the income and expenditures of the System for such fiscal year. g. 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 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 ot the policy, the risks covered, the name of the insurer and the expiration date of the policy. 2. The number of properties connected with the Electric Light System at the end of the year, the number ot metered electric customers at the end of the year, and the number of unmetered electric customers at the end or the year. All expenses incurred in the making of the audits required by this Section shall be regarded and paid as a main- tenance and operation expense. The City or 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 or 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 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 of the bonds remain outstanding and unpaid and that it will faithfully and punctually perform all duties with re- ference to the System required by the Constitution and laws or the State ot Texas, including the making and collecting of reasonable and sufficient rates for electric light service supplied by the System, and segregating and application ot the revenues of the System as required by the provisions or this ordinance and the ordinances of February 26, 1948, and April 28, 1949. The City covenants and agrees and reaffirms that no tree 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 sonsumers. SECTION 17: The City ot Lubbock hereby irrevocably covenants, reaffirms, binds and obligates itself not to mortgage or otherwise encumber the System or any part tbreof 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 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 of property which in the City's Judgment has become inexpedient to use in connection with the System, when other property of equal value is substituted therefor. SECTION 18: The City of Lubbock further covenants, reaffirms and agrees that while any of the bonds ot the said total principal amount ot $4,924,000 voted at the said election or 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 expressly understoOd and agreed that any further . \' obligations payable trom the revenues or 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 exceptions; that it, prior to the payment and discharge ot all outstanding bonds ot the voted principal amount ot $4,924,000 of bonds heretofore and herein authorized to be issued, it shall be found desirable to refund said bonds under the provisions or 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 rede~able and have been duly called for redemption, in which case such con- sent shall not be necessary) and the refunding bonds so issued shall enjoy complete equality ot lien with the portion of said bonds which is not refunded, if any there be, and such re- funding bonds shall continue to enjoy the same priority of l~en over any other bonds or obligations of the Electric Light System as were enjoyed by the bonds refunded; PROVIDED, HOWEVER, .1 that 1r only a portion of the bonds outstanding is refunded and it such bonds are refunded in such manner that the interest rate of the refunding bonds is increased or that any ot the refunding bonds mature at a date earlier than the maturity dates ot the bonds refunded and earlier than the maturity date ot any of the bonds not refunded, then such bonds may not be refunded without the consent of the holders of the unrefunded portion ot the bonds then outstanding ot the authorized voted amount of $4,924,000. SECTION 19: That so tar as it legally may, the City of Lubbock covenants, reaffirms and agrees, for the pro- tection and security ot the bonds herein authorized and authoriz- ed by the ordinances of F'ebruary 26, 1948, and April 28, 1949, / ) and.the holders thereof from time to time, that it will not grant any franchise tor the establishment or any additional competing Electric Light System in the City of ;Lubbock until . all bonds issued pursuant thereto shall have been retired. SECTION 20: That the provisions or 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 or said bonds, no change, variation or alteration of any kind or 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 21: BE IT FURTHER <RDAINED BY THE CITY COMMISSION OF THE CITY OF LUBBOCK: That the Mayor of said City shall be and he is hereby authorized to take and have ~barge of all necessary orders and records pending investigation by the Attorney General or the State of Texas, and shall take and have charge and control ot the bonds herein authorized pending their approval by the Attorney General and their registration by the Comptroller of Public Accounts. SECTION 22: AND BE IT FURTHER ORDAINED BY THE C I'lY COMMISSION OF THE CITY OF LUBBOCK: The tact that 1t is to the best interest of the City that the authorized construction or improvements, enlargements, extensions and 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 tmmediate pre- servation of the public peace~ property~ health and safety~ as well as a more erticient administration and operation of the City's above mentioned System,s 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 Commission~ and the same shall take effect from and after its passage. and it is so ordained. PASSED AND APPROVED, this the J. f" day of December, 1950. ATTEST: (City Seal) I ,• .. I • • r J CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS COUN'IY OF LUBBOCK CITY OF LUBBOCK I I 1 Lavenia Lowe 1 City Secretary of the City of Lubbock, Texas~ DO HEREBY CERTIFY that the above and tore- going is a true and correct copy of an ordinance authorizing the issuance of $774,000 11CI'lY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS, SERIES 1951", passed by the City Commission of said City on the ~r day of December, 1950 (and Minutes pertaining to its adoption), and that it has been properly enrolled, placed 1n the ottice ot the City Secretary, and approved by the Mayor, having been recorded in Book~~ page ~~~et seq., ot the Minutes of said Commission. IH WITNESS WHEREOF, I have hereunto signed my name officially and affixed the seal ot said City, this the :>: <l day of December, 1950. City Seer a~ Ci~fubbock, Texas. (City seal)