HomeMy WebLinkAboutOrdinance - 1374-1953 - Authorizing Issuance Of $2,045,000 City Of Lubbock Waterworks Revenue Bonds - 04/24/1953-�-
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04--;;.2 4 -\_.9-S 3 ORDINANCE NO. 1374 AN ORDINANCE AUTHORIZING ISSUANCE OF $2,045,000 11CITY OF LUBBOCK, TEXAS., WATERWORKS .SYSTEM REVENUE BONDS., SERIES l,95311 .,
THE STATE OF TEXAS
CITY OF LUBBOCK
COUNTY OF LUBBOCK I DATED JUNE 1, 1953
ON THIS., the �t day of April, 1953, the City Com-
mission of the City of Lubbock, Texas� convened in Spe:c.,JL.
session at the regular meeting place thereof in the City Hall,
with the following members thereof, to-wit:
MURRELL R. TRIPP,
:bGOIMi 4'ifOHA8 .,. lL.E. DAVIS .,HARRY MORRIS., HURLEY C�PENTER .,
and
MES. LAVENIA LOWE,
MAYOR
COMMISSIONERS
CITY SECRETARY,
present, and the following absent: L\)C..p\j.) :ttt:oMAS
constituting a quorum, at which time the following, among
other business was transacted:
,
Counnissioner Mo��\.,!> presented for the considera
tion of the City Commission an ordinance authorizing the
issuance of "CITY OF LUBBOCK, TEXAS, WATERWORKS SYSTEM REVENUE
BONDS, SERIES 195311 , dated June 1, 1953, in the principal sum
of $2;045,000, (being the first parcel or installment of a
total voted authorization of $4,644,000 bonds).
The ordinance was read in full by the City Secretary.
Thereupon, Commissioner � P\i �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, that the same be declared an emergency
measure. This motion was duly seconded by Commissioner
• The motion carried by the following vote:
AYES: Commissioners ~&Mae, Davis, Morris,
and Carpenter, and Mayor Tripp.
NOES: None.
Thereupon, Commissioner t't\-oR \).l..S 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 ~~~A~~~L>~-------' and the motion, carrying with
it the final passage and adoption of the ordinance, was
unanimously carried by the following vote:
AYES: Commissioners 'l'hcmae, Davis, Morris
and Carpenter, and Mayor Tripp.
NOES: None.
Thereupon, the Mayor announced that the ordinance had
been finally passed and adopted by unanimous vote of the
Commission in accordance with the requirements of 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 Commission.
The ORDINANCE i~ as follows:
NUMBER 1374
"AN ORDINANCE by the City Commission of the City of
Lubbock, Texas, authorizing the issuance of
bonds in the principal sum of $2,045,000 (being
the first parcel or installment of ~ total voted
authorization of $4,644,900 bonds), for the purpose
-/
of making permanent public improvements~ to-wit:
constructing improvements and extensions to the
Cityts combined Waterworks 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; pledging the revenues of the
City's Waterworks System to the payment of the
principal of and interest on the bonds, after de-
duction of reasonable expenses of operating and
maintaining said system; enacting provisions
incident and relating to the subject and purpose
of this ordinance; and declaring an emergency.n
WHEREAS, under and by virtue of a resolution and order
duly passed and adopted by the City Commission of the City .of
Lubbock, Texas, on the 21st day of November, 1952, an election
was ordered to be held in said City on the 9th day of December~
1952, at which election the following propositions were sub-
mitted to the qualified electors of said City:
PROPOSITION NUMBER 1
uSHALL the City Commission of the City of Lubbock,
Texas, be .authorized to issue FOUR MILLION ONE HUNDRED
NINETEEN THOUSAND DOLLARS ($4,119,090) r~yenue bonds of said City for the purpose of making permanent public im-
provements, to-wit: constructing improvements and ex-
tensions to the City•s Waterworks System; said bonds to \
mature serially over a period of not to exceed thirty ("30)
years from their date, and to bear interest at a rate not
to exceed THREE AND THREE-FOURTHS PER CENTUM ( 3-3/4%) per
annum, payable annually or semi-annually; said revenue
bonds to be special obligations of the City, payable as
to both principal and interest solely from and secured by
a first lien on and pledge of the revenues of the City•s
Waterworks System, after deduction of reasonable operation
and maintenance expenses, as said expenses are defined by
statute?"
PROPOSITION NUMBER 2
uSHALL the City Commission of the City of Lubbock,
Texas, be authorized to issue FIVE HUNDRED TWENTY-FIVE
THOUSAND DOLLARS ($525,000) reven~e bonds of said City
for the purpose of making permanent public improvements,
to-wit: constructing improvements and extensions to the
City's Sanitary Sewer System, said bonds to mature
serially over a period of not to exceed thirty (30) years
from their date, and to bear interest at a rate not to
exceed THREE AND THREE-FOURTHS PER CENTUM ( 3-3/4%) per
annum, payable annual~y or semi-annually.; said revenue
bonds to be special obligations of the City, payable as
to both principal and interest solely from and secured
by a first lien on and pledge of the revenues of the
City•s Waterworks System, after deduction of reasonable
operation and maintenance expenses, as said expenses are
defined by statute?u
AND WHEREAS, the said election was held pursuant to
said resolution· and order on the 9th day of December, 1952;
and
WHEREAS, this City Commission has examined into and
investigated the regularity of the proceedings for said elec-
tion, and finds that the same was duly and legally held; that
the notice required by law to be given has been duly and legally
given; that said election was conducted in strict conformity
with the law; and that due returns of said election have been
made by the proper officers; and
WHEREAS, at said election, a majority of the qualified
voters who are propet.ty taxpayers of the City of Lubbock,
voting at said election, sustained both of the propositions
to issue the aforesaid bonds, in the aggregate principal sum
of $4,644,000; and
WHEREAS, this City Commission has heretofore, to-wit:
on the 11th day of December, 1952, adopted a resolution
canvassing the returns and declaring the results of said elec-
tion and determining the specific authority of the City to
issue -said revenue bonds; and
WHEREAS, it was provided in the aforesaid resolution
and order calling said election that the bonds of the two series
hereinabove mentioned were to be ratably secuted in such manner
that no one bond shall have priority of lien over any other
I
bond or bonds, it being the intention to provide for the
creation of an indebtedness against the Cityts Waterworks
System for the purposes therein stated; and which bonds, if
approved by the qualified voters, voting at said election,
were to be issued as one series; and
WHEREAS, it being now determined by the City Commission
that it is not desired at this time to issue all of the bonds
voted for on the propositions as aforesaid, in the amount of
$4,644,000, and that $2,045,000 is the amount of bonds now ·
desired to be issued, and that the remaining amount of said
bonds, to-wit: $2,599,000, shall be issued at a future date
or dates, when in the judgment of the City Commission, the
proceeds of the said additional bonds are needed for the pur-
poses for which authorized; provided, however, that if and
when such remaining $2,599,000 of bonds heretofore voted, or
any portion thereof, shall be issued and sold, said bonds so
issued and sold, together with the $2,045,000 of bonds herein
authorized to be issued, shall be ratably secured by a pledge
of the net revenues of the City's Waterworks System in such
manner that no one bond of the total authorized amount of
$4,644,000 shall have priority of lien over any other bond
or bonds of said authorized amount; and
WHEREAS, it is considered, found and determined that
it is advisable and in the best interest of the City of Lubbock,
to ma~e appropriate provisions herein for the future issuance
of additional revenue bonds for water and sewer purposes,
which, if and when authorized in accordance with law are to
occupy a position of parit~ and enjoy an equality of lien on
the revenues of the City•s Waterworks System with the bonds
authorized at the election of December 9, 1952; and further to
herein prescribe the restrictions, covenants and limitations
which shall govern the issuance of such additional parity bonds;
and
WHEREAS, it is FOUND, DETERMINED AND ADJUDGED that it
is necessary and to the best interest of the City to construct
improvements and extensions to the Ci~yts Waterworks and
Sanitary Sewer System at the earliest possible date, for the
immediate preservation of the public peace, property, health
and safety of the citizens of the City of Lubbock, Texas, and
that by virtue thereof this ordinance shall be passed and
adopted as an emergency measure; therefore
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
LUBBOCK:
SECTION 1: .That in order to borrow the said sum of
TWO MILLION FORTY-FIVE THOUSAND DOLLARS ($2,045,000), for the
purpose of making permanent public improvements, to-wit:
constructing improvements and extensions to the City's combined
Waterworks and Sanitary Sewer System, the City Commission of
the City of Lubbock, Texas, by virtue of the authority expressly
conferred upon it by the qualified voters of said City voting
at the aforesaid election, and pursuant to the General Laws of
the State of Texas, particularly Articles 1111 et seq., Texas
Revised Civil Statutes of 1925, ~s amended) has determined that
there _shall be issued, and there is hereby issued a series of
coupon bonds in the total principal sum of TWO MILLION FORTY-
FIVE THOUSAND DOLLARS ($2,045,000), (being the first parcel
or installment of a total voted authorization of $4,644,000
bonds), to be designated "CITY OF LUBBOCK, TEXAS, WATERWORKS
SYSTEM REVENUE BONDS, SERIES 1953", payable as to both principal
and interest solely from and secured by a first lien on and
pledge of the revenues of the City•s Waterworks System after
deduction of reasonable operation and maintenance expenses, as
said expenses are defined by statute.
SECTION 2: That said bonds shall be dated June l,
1953; shall be numbered consecutively from One (1) to Two
Thousand Forty-five (2045), both inclusive; shall be in the
denomination of One Thousand Dollars ($1,000) each; and shall
become due and payable serially in accordance with the following
schedule:
BOND NUMBERS ~A11 -Inc1usivel MATURITY DATES AMOUNTS
1 to 85 June 1, 1954 $85,000
86 to 170 June 1, 1955 85,000
171 to 255 June 1, 1956 85,000
256 to 340 June 1, 1957 85,000
341 to 425 June 1, 1958 85,000
426 to 510 June 1, 1959 85,000
511 to 595 June 1, 1960 85,000
596 to 680 June 1, 1961 85,000
681 to 765 June 1, 1962 85,000
766 to 845 June 1, 1963 8o,ooo '"'
846 to 925 June 1, 1964 80,000
926 to 1005 June 1, 1965 80,000
1006 to 1085 June 1, 1966 80,000
1086 to 1165 June 1, 1967 80,000
1166 to 1245 June 1, 1968 80,000
1246 to 1325 June 1, 1969 80,000
1326 to 1405 June 1, 1970 80,000
1406 to 1485 June 1, 1971 80,000
1486 to 1565 June 1, 1972 80,000
1566 to 1645 June 1, 1973 80,000
1646 to 1725 June 1, 1974 80,000
1726 to 1805 June 1, 1975 Bo,ooo
1806 to 1885 June 1, 1976 80,000
1886 to 1965 June 1, 1977 80,000
1966 to 2045 June 1, 1978 80,000;
PROVIDED, HOWEVER, that the City reserves the right to redeem
Bonds Numbered 1246 to 2045, both inclusive, of this series,
(maturing on June 1st in each of the years 1969 to 1978, both
inclusive), in whole or in part, on June 1, 1968, or on any
interest payment date thereafter, at par and accrued interest;
to 19!Ul_, both inclusive, shall bear interest at the
rate of' --T~t\:._S\~t:=-=E'":...-___ PER CENTUM { ..,3 %)
per annum;
(d) Bonds Numbered ____ to ______ , both
inclusive, maturing on June 1st in each of the years
19 ___ to 19 ___ , both inclusive, shall bear interest
at the rate of' ---------~-PER CENTUM
( %) per annum; and
(e) Bonds Numbered to , both ----
inclusive, maturing on June 1st in each of' the years
19 ____ to 19 ____ , both inclusive, shall bear interest
at the rate of' PER CENTUM ---------------------( %) per annum;
such interest to be evidenced by proper coupons attached to each
of' said bonds, and said interest shall be payable on June 1,
1954, and semi-annually thereafter on December lst and June 1st
in each year.
SECTION 4: That both principal and interest of'
this issue of' bonds shall be payable in lawful money of the
United States of America, without exchange or collection charges
to the owner or holder, at ')ttE: \> A'Tl o \> ts \-~ tt '\ ~ 1\IJ"
ol! )J~w 'io'a. \(. , or at the holder's option at the
CITIZENS NATIONAL BANK, LUBBOCK, TEXAS, upon presentation and
surrender or bonds or proper 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 11CITY OF LUBBOCK, TEXASn shall be impressed
upon each of them.
SECTION 6: That the facsimile signatures of 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 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 OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK~ TEXAS, WATERWORKS SYSTEM
REVENUE BOND SERIES 1953 )
$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 JUNE , 19 ____ , the sum of
ONE THOUSAND DOLLARS
($1,000), in lawful money of the United States of America, with-
out exchange or collection charges to the owner or holder, with
interest thereon from the date hereof until paid, at the rate
of----------PER CENTUM ( __ ___,%) per annum~ payabl
on June 1, 1954, and semi-annually thereafter on December 1st
and June 1st in each year, and interest falling due on or prior
to maturity hereof is payable only upon presentation and surren-
der of the interest coupons hereto attached as they severally
become due.
BOTH PRINCIPAL and interest of this bond are hereby
made payable at ---------------------------------------------'
or at the holder's option~ at the CITIZENS NATIONAL BANK, LUBBOCK,
I
TEXAS, and the said City of Lubbock, Texas, is hereby held and
firmly bound to apply the pledged appropriated revenues of
its Waterworks System to the prompt payment of principal and
interest of this bond at maturity, and to pay said principal
and interest as they mature.
THIS BOND is one of a series of bonds of like tenor
and effect, except as to number, interest rate, right of prior
redemption and maturity, aggregating in amount TWO MILLION
FORTY-FIVE THOUSAND DOLLARS {$2,045,000), (being the first
parcel or installment of a total voted authorization of
$4,644,000 bonds), numbered consecutively from One (1) to Two
Thousand Forty-five {2045), both inclusive, in denomination of
One Thousand Dollars ($1,000) each, .issued for the purpose of
making permanent public improvements, to-wit: constructing
improvements and extensions to the City's combined Waterworks
and Sanitary Sewer System, in accordance with the Constitution
and laws of the State of Texas, particularly Articles 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 9th day of December, 1952, and pursuant to an ordinance
passed by the City Commission of the City of Lubbock, Texas,
and duly recorded in the Minutes of the City Commission.
AS SPECIFIED in the ordinance hereinabove mentioned,
the Ci~y reserves the right to redeem Bonds Numbered 1246 to
2045, both inclusive, of this series, (maturing on June 1st in
each of the years 1969 to 1978, both inclusive), in whole or in
part, on June 1, 1968, or on any interest payment date there-
after, at par and accrued interest; PROVIDED, HOWEVER, that if
less than all of said bonds are redeemed on any such redemp-
tion dates, same shall be redeemed in inverse numerical orderj
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 Secre-
tary (specifying the serial numbers and amount of bonds to be
redeemed) shall be published once in a financial journal of
general circulation published in the City of New York, New York,
and shall have been filed with ------------------------------
------------------------and with the CITIZENS NATIONAL BANK,
LUBBOCK, TEXAS, and should any bond or bonds not be presented
for redemption pursuant to such notice, the same shall cease
to bear interest from and after the· date so fixed for redemp-
tion.
THE DATE of 'this bond, in conformity with the
ordinance above mentioned is June 1, 1953.
THIS BOND and the series of which it is a part
constitute special obligations of the City of Lubbock, and
together with such other bonds of said total voted amount of
$4,644,000 as may be issued, are payable as to both principal
and interest and equally secured by a first lien on and
pledge of the revenues of the City's Waterworks System, after
deduction of reasonable expenses of operation and maintenance.
THE CITY reserves the right to issue additional
bonds and obligations payable from the net revenues of the
Waterworks System on a parity with the bonds of this issue
and with such other bonds of said total voted amount of
$4,644,000 as may be issued, but pursuant only to and subject
to the restrictions, covenants and limitations contained in
the ordinance authorizing this issue of bonds, to which reference
is made for full particulars.
THE HOLDER hereof shall never have the right to demand
payment of this obligation out of any funds raised or to be
raised by taxation.
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 su~sequent holders who may
receive this bond or any of the interest coupons attached, for
value without notice, has thereby acquired absolute title free
from all equities and claims of ownership of any prior holder.
The City of Lubbock, its officers and the paying agents shall
not be affected by any notice to the contrary.
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~d things
required to exiat and to be done precedent to and in the
issuance of this bond to render the same lawful and valid have
been properly done, have happened and been performed in regular
and due time, form and manner as required by the Constitution
and laws of the State of Texas and the ordinance hereinabove
mentioned; 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 of said Waterworks System of said City of
Lubbock, Texas.
IN TESTIMONY WHEREOF~ the City Commission of the
City of Lubbock, Texas~ has caused the seal of said City to be
impressed hereon~ and this bond to be signed by the Mayor
of said City and countersigned by the City Secretary~ and has
caused the annexed coupons to be signed by the lithographed or
printed facsimile signatures of the Mayor and City Secretary.
Mayor~ city of Lubbock, Texas
COUNTERSIGNED:
city Secretary~ city of Lubbock~
Texas
SECTION 8: The form of said interest coupons shall
be substantially as follows:
ON THE DAY OF
19 ---NO._
unless the bond to which this coupon pertains has been properly
called for redemption in accordance with its terms, the CITY
OF LUBBOCK, a municipal corporation of the State of Texas,
hereby promises to pay to the bearer, out of funds specified in
the bond to which this coupon is attached (without right to
demand payment out of any funds raised or to be raised by taxa-
tion) and in lawful money of the United States of America,
without exchange or collection charges to the owner or holder,
at ------------------------------------------------' or at the
holder's option, at the CITIZENS NATIONAL BANK, LUBBOCK, TEXAS,
the sum of
/
•
------DOLLARS
($ _________ )~ said sum being-------months• interest due that
day on ttCITY OF LUBBOCK, TEXAS, WATERWORKS SYSTEM REVENUE BOND,
SERIES 1953n, dated June 1, 1953. Bond No. ---·
~I~y Secretary Mayor
SECTION 2: Substantially the following 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
him as required by law, and that.he finds that it has been
issued in conformity with the Constitution and laws of the
State of Texas, and that it is a valid and binding special
obligation of the City of Lubbock, Texas, payable from the
revenues pledged to its payment by and in the ordinance
authorizing same, and said bond has this day been registered
by me.
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas,
-------·
SECTION 10:
Comptroller of Public Accounts of
the State of Texas.
That the following is a schedule of the
principal and interest requirements, showing also the total
annual requirements of said "CITY OF LUBBOCK, TEXAS, \'II'ATERWORKS ·
SYSTEM REVENUE BONDS, SERIES 195311
; that is to say
YEAR ENDING
June 1st
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
PRINCIPAL
$85,000
85,000
85,000
85,000
85,000
85,000
85,000
85,000
85,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
ao ,ooo
80,000
INTEREST
TOTAL ANNUAL
REQUIREMENTS
l~t -/ ~~
~Jo
"'7
-'' ~~
~
41
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t.;.
b" . LJ.
"1 4f
~1
}o
11
1Y
13 1t 1.:
7Jo
71
11'
.. ~o-\-~
,;r~;-au .. ~ .,A.,...A.\J cJ_.
.J ~ e... e.~.!» .. I ., ,.
. bo~&1 ... ~ , \ "'<-'' 1 '0
. ,
~, bJ \ 'Plo-t. ' " ,. 0
..('~ :\1 ~ \.3 1 ~ 1 ,. 0 -t
~1oo~.,..
~"''C) .. ~
~'\1\:,0o ,.
1
~.,"-oo -
"\. ,,.,o ,
).a&oo-
lll.o
l Cf lo ,.
l<iio '
\ 1.\-oo ,.
\ 'l-ooo '
·t
l f \.oo ,. ,
\3 b\.t> ... 1)
IVlot -....(o
·~1~ ...
1~31 "o
\ 11 \)~() ..,
l P+i o-D ..
\\ \-:L o ..
I lo'lo-oo ...
.• ,,0~ ..
\a t.•oo -
)o.lioo-)o ,.\,o ~ ...
<\1'\.oo ,.
, g i'4J~ ..
~ b ~o
~'4-ooo ..
9 ,~C)Il) ...
~1 1--oo ..
i~i'·bo '
gv4o ,.
No mistake in the foregoing calculations shall in
any manner operate to diminish the payment of the amounts to
become due on said bonds, but an amount is hereby ordered to
be set aside for each of the years specified, sufficient to
meet the requirements hereof in all respects.
SECTION 11: The City of Lubbock, Texas, covenants
and agrees that, as received, all operating income and revenues
of its Waterworks System shall be first deposited in an account
designated the 11Waterworks System Fundn, kept separate and
apart from all other funds or accounts, and further that said
nwaterworks System Fund" 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 operation and maintenance of
the Waterworks System as said expenses are defined by
statute.
Second: To the .11 SPECIAL WATERWORKS SYSTEM
REVENUE BOND RETIREMENT AND RESERVE FUND11 , hereby
created for the payment of principal and interest
of the bonds herein authorized when and as the same
falls due and 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 "SPECIAL WATERWORKS SYSTEM REVENlJE
BOND RETIREMENT AND RESERVE FUND":
The entire net income and revenues of the City•s
Water~orks System remaining after operation and maintenance
expenses are deducted, are hereby irrevocably pledged to said
Special Fund, in amounts sufficient to produce the total
annual principal and interest requirements of the revenue bonds
herein authorized, as such total requirements are shown in the
j
schedule relating thereto as set out in Section 10 of this
ordinance; AND, IN ADDITION, said Special Fund shall contain a
reserve, and to establish such reserve, shall be supplemented
each year by the amount of $24,000 until such time as said
reserve portion of said Special Fund totals $120,000 in excess
of all amounts required to fully meet and discharge the prin-
cipal and interest installments falling due on or before the
next succeeding principal maturity date with respect to the
bonds herein authorized. It is hereby declared to be the
City1 s purpose, and said City so covenants and affirms that
the amounts to be maintained in said Special Fund shall con-
tinuously be in excess of any particular year's principal and
interest requirements of the bonds herein authorized by the
sum of $120,000, as a reserve for use in meeting the require-
ments of said bonds, if need be, and that this arrangement
shall continue and said Special Fund shall be continuously
supplemented as necessary to maintain said reserve until said
bonds with all interest thereon have been fully paid and dis-
charged, 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 outstand-
ing at their final maturity. The City Treasurer is authorized
and directed to calculate the amounts required annually as afore
said (including said reserve) and to withdraw said amounts
thus determined from the aforementioned "Waterworks System Fund",
and d~posit same in said trSPECIAL WATERWORKS SYSTEM REVENUE
BOND RETIREMENT AND RESERVE FUND" in equal monthly installments
on or before the 15th day of each month. The CITIZENS NATIONAL
BANK, Lubbock, Texas, is hereby designated as the custodian
'·
r
of said Special Fund, and the deposits above prescribed shall
be transmitted to said fund with said bank. In the event the
income and revenues of the Cityts Waterworks System are in-
sufficient in any month to permit the required deposits into
the Special Fund in full accord with the provisions hereof,
then the amount of any deficiency shall be added to the amount
otherwise required to be deposited in said fund in the next
month, until all deficiencies are rectified.
The custodian bank is authorized to invest the
reserve portion of said Special Fund in short term direct ob-
ligations of the United States of America, maturing not later
than five years from their date, as the City Commission may
direct. Said obligations shall be held by the aforesaid
custodian bank and if at any time uninvested funds shall be
insufficient to permit payment of principal and interest
maturities of the bonds herein authorized as heretofore directed
said bank shall sell on the open market such amount of the
securities as is required to pay said bonds and intenat when
due, and shall give due notice thereof to the City of Lubbock.
All moneys resulting from the maturity of principal and in-
terest of the securities in which the reserve funds are in-
vested may be reinvested or accumulated in said reserve portion
ot said Special Fund and considered a part thereof and used
for and only for the purposes hereinabove provided with respect
to said reserve.
Any funds remaining on hand as the proceeds of the
operating income and revenues of the City's Waterworks System
after first making full provisions for the purposes and funds
referred to in the foregoing paragraphs may be used by the
City for the payment of bonds then outstanding and eligible
for prior redemption and the purchase of bonds in the open
market at not exceeding the market value there~f, or for any
other purpose which may now or hereafter be permitted by law.
For all purposes of this ordinance and in particular
with respect to the pledge and appropriation of revenues herein
prescribed, the term "Waterworks System11 of the City: of
Lubbock, Texas, shall include the Waterworks System of said
City, together with any additions and extensions thereto and
improvements and replacements thereof.
SECTION 12: The City of Lubbock further covenants
and agrees that, so long as any of the revenue bonds and coupons
herein authorized remain outstanding and unpaid, it shall fix
and maintain rates and collect charges for the facilities and
services afforded by its Waterworks System which will produce
income and revenues sufficient at all times to:
(1) Pay all operation, maintenance, depreciation,
and betterment charges and expenses of said System; and
(2) Establish and fully maintain the above pres-
cribed "SPECIAL WATERWORKS REVENUE BOND RETIREMENT AND
RESERVE FUND" •
SECTION 13: The City further covenants and agrees
by and through this ordinance, as follows:
(a) That the revenue bonds authorized hereunder
shall be special obligations of the City and the holder
thereof shall never have the right to demand 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 of bonds, and has law-
fully exercised said power under the Constitution and
laws of the State of Texas, including power existing
under Articles 1111 to 1118, both inclusive, 1925
Revised Civil Statutes of the State of Texas, with
amendments thereto, and by authority of a vote of the
qualified electors of said City, voting at an election
held on the 9th day of December, 1952; that the bonds
issued hereunder shall be ratably secured in such
manner that one bond shall have no preference over
any other bond of said issue; and
(c) That, other than for the pa~ent of the
bonds hereby issued, the rents, revenues and income
of the said Waterworks System have not been in any
manner pledged to the payment of any debt or obli-
gation of the City and/or said System, and that said
System is free and clear of all encumbrances whatso-
ever.
SECTION 14: The City of Lubbock hereby reserves
the right to issue additional revenue bonds payable from the
net income and revenues of its Waterworks System. When duly
authorized and issued in compliance with the terms and con-
ditions hereinafter appearing, such addit±onal bonds shall be
on a parity with the series of bonds herein issued. Upon
issuance as aforesaid, said additional parity bonds shall be
equally and ratably secured with the series of bonds herein
issued by a first lien on and pledge of the revenues of the
City•s Waterworks System.
The City covenants and agrees, however, that it
will not issue any other revenue bonds or obligations of any
nature payable from the revenues of the City's Waterworks
System on a parity with the bonds herein authorized, unless
and until all the following conditions have been met:
(a) That the City is not then in default as
to any covenant, condition or obligation contained in
this ordinance;
(b) The proposed additional bonds shall have
been favorably voted at an election duly called and
held for the purpose;
(c) That the City has secured a certificate
from a Certified Public Accountant showing that the
net revenues and income of the Waterworks System,
after full provisions have been made for adequate
maintenance and operation charges, for the last
completed fiscal year immediately preceding the
issuance and sale of the additional bonds is equal to
at least two times the average of the total annual
principal, interest and reserve requirements provided
for the bonds herein issued, plus the average annual
interest principal and any reserve requirements of the
additional bonds; and in addition, that the City has
secured a certificate fron an Engineer registered by
the State Board of Registration for Professional
Engineers of the State of Texas, showing that the pro-
jected net income and revenues of said Waterworks System,
after providing for adequate maintenance and operation
expenses, as estimated by him throughout the maturities
I .
of all such bonds, will, each year, be at least two times
the average annual principal, interest and reserve require-
ments of all bonds payable from such revenues, which will
be outstanding after the issuance of the additional bonds.
Such additional bonds, when thus issued, may be se-
cured by a pledge of the revenues of the Waterworks System on
a parity with the pledge securing the issuance of the bonds
herein authorized.
SECTION 15: The City of Lubbock hereby covenants
and agrees to maintain the Waterworks System facilities in
good condition and operate the same in an efficient manner and
at reasonable cost. So long as any of the bonds herein
authorized are outstanding the City agrees to maintain insurance
for the benefit of the holder or holders of the bonds of the
kinds and in the amounts which are usually carried by private
companies operating similar properties, and that during such
time all policies of insurance shall be maintained in force
and kept current as to premium payments. All moneys received
from losses under such insurance policies other than public
liability policies, are hereby pledged 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 replacing the property destroyed or repair-
ing the property damaged, and adequate provision for making
good such loss or damage made within ninety (go) days from
the date of the loss. The payment of premiums for all in-
surance policies required under the provisions ~ this section
shall be considered as maintenance and operation expenses.
SECTION 16: The City of Lubbock hereby covenants
and agrees to install and maintain a complete system of records
and accounts pertaining to the operation of the Waterworks
System (separate and apart from all other records and accounts),
in which complete and correct entries shall be made of all
transactions relating to said system, as provided by Article
1113, Revised Civil Statutes of Texas, as amended. The City
shall cause an audit of the records pertaining to the operation
of the System to be made at the close of each fiscal year by
an independent auditor, said audit to include, among other
things, the following:
(a) A statement in detail of the income and
expenditures of the System for such year;
{b) A balance sheet as of the end of
the year;
(c) The Accountant's comment regarding the
manner in which the City has carried out the re-
quirements of the bond ordinance and his recommenda-
tions, if any, for changes or improvements in the
operation of the System;
(d) A list of the insurance policies in force
at the end of the year on properties of the System,
setting out as to each policy the amount of the policy,
the risk covered, the name of the insurer, and the
exp·iration date of the policy;
(e) The number of customers connected with
the System, showing totals at the end of the year.
Copies of the aforesaid annual audit shall be fur-
nished promptly to any bondholder upon his written request
therefor, not more than sixty days after the close or the
fiscal year. In addition to said annual audit, and at the
close of the first six months' period of each fiscal year,
the City Secretary is authorized and directed to furnish
copies or an operating and income statement in reasonable
detail covering such six months' period, to any bondholder
upon his written request therefor, not more than thirty
days after the close or. said six months' period.
SECTION 17: Any purchaser of twenty-five per
centum (25%) of aggregate principal amount of the bonds at
the time then outstanding or any holder or holders or twenty-
five per centum (25%) of said amount or outstanding bonds,
shall have the right at all reasonable times to inspect
the System and all records, accounts and data or the City
relating thereto; and shall have the right to request and
receive such financial statements and other pertinent in-
formation and data relating to the City and the Waterworks
System as such purchaser from time to time may reasonably
require.
SECTION 18: In addition to all the rights and
remedies provided by the laws of the State of Texas, the
City covenants and agrees that in the event the City (a)
defaults in the payment of principal or interest on any of
the bonds when due, (b) fails to make the payments required
by Section 11 of this ordinance to be made into the nsPECIAL
WATERWORKS SYSTEM REVENUE BOND RETIREMENT AND RESERVE FUND",
or (c) defaults in the observance or performance of any other
of the covenants, conditions or obligations set forth in this
ordinance, the following remedies shall be available:
{1) The holder or holders of any of the
bonds shall be entitled to a writ of mandamus issued
by a court of competent jurisdiction compelling and
requiring the City Commission and other officers of
the City to observe and perform any covenant, obli-
gation or condition prescribed in the bond ordinance.
(2) No delay or omission to exercise any
right or ppwer accruing upon any default shall
impair any such right or power or shall be construed . to be a waiver of any such default or acquiescense
therein, and every such right and power may·be exer-
cised from time to time and as often as may be deemed
expedient.
The specific remedies herein provided shall be
cumulative of all other existing remedies and the specifica-
tion of such remedies shall not be deemed to be exclusive.
SECTION 19: The City of Lubbock further covenants
and agrees that it will faithfully and punctually perform all
duties with reference to the System required by the Constitu-
tion and laws of the State of Texas, including the making and
collecting of reasonable and sufficient rates for water
services supplied by the System, the segregation and applica-
tion of the revenues of the System as required by the provi-
sions of this ordinance. The City covenants and agrees
that no free services shall be rendered by the System to any
customers, including the City and its various departments,
--
and that all water services used by the City and its variou~
departments will be paid for at the same rates charged other
consumers. The fiscal year for the operation of such system
shall be from October lst of each year to September 30th of
the succeeding year.
SECTION 20: The City of Lubbock hereby irrevocably
covenants, binds and obligates itself not to sell, lease, or
in any manner dispose of the Waterworks System, or any part
thereof, including any and all extensions and additions that
may be made thereto, until the bonds herein authorized to be
issued shall 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 property which in its
judgment has become inexpedient to use in connection with
the System when other property of equal value has been sub-
stituted therefor).
SECTION 21: The $2,599,000 balance of revenue
bonds voted at the election of December 9, 1952, and which
is not herein authorized to be issued, may be issued in one
or more installments at such fluture date or dates as in the
judgment of the City Commission the proceeds of said balance
of authorized bonds are needed for their authorized purposes,
and when and as issued by proper ordinance or ordinances of
the City Commission and thereupon sold and delivered, said
balance of bonds shall be ratably secured by a pledge of the
revenues of the City's Waterworks System in such manner that
no one bond of the series herein provided to be issued or
those subsequently to be issued, shall have priority of lien
over any other bond of said original $4,644,000 authorization.
It is expressly provided, however, that no additional bonds
of the said $2,599,000 balance shall be issued or sold
until the City has secured from a Certified Public Accountant·
a certificate showing that the net revenues and income of
the Waterworks System~ after full provisions have been made
for adequate maintenance and operation charges, for the last
completed fiscal year immediately preceding the issuance and
sale of the additional bonds is equal to at least two ·times
the average of the total ann~al principal, interest and
reserve requirements provided for the bonds herein issued,
plus the average annual interest, principal and any reserve
requirements of the proposed bonds; and in addition, that the
City has secured a certificate from an Engineer registered
by the State Board of Registration for Professional Engineers
of the State of Texas, showing that the projected net income
and revenues of said \1/aterworks System, after providing for
adequate maintenance and operation expenses, as estimated
by him throughout the maturities of all such bonds, will
each year, be at least two times the average annual principal
interest and reserve requirements of all bonds payable from
such revenues, which will be outstanding after the issuance
of the additional bonds. Nothing contained in this section
shall be considered as conflicting with the provisions of
Section 14 hereof pertaining to the issuance of additional
• revenue bonds on a parity with the bonds referred to in this
section, which has reference only to bonds which were voted
at the election of December 9, 1952.
SECTION 22: That so far as it legally may, the
City of Lubbock covenants and agrees, for the protection and
security of the bonds herein authorized and the holders thereof
from time to time, that it will not grant a franchse for the
operation of any competing Waterworks System in the City of
Lubbock, until all bonds issued pursuant to this ordinance
shall have been retired.
SECTION 23: That the provisions of this ordinance
shall constitute a contract between the City of Lubbock, Texas,
and the holder or holders from time to time of the bonds herein
authorized to be issued, and after the issuance of any of said
bonds, no change, variation or alteration of any kind of the
provisions of this ordinance may be made, unless as herein
otherwise provided, until all of the bonds issued hereunder
shall have been paid as to both principal and interest.
SECTION 24: BE IT FURTHER ORDAINED 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 charge of all necessary orders
and records pending investigation by the Attorney General of
the State of Texas, and shall take and have charge and control
of the bonds herein authorized, pending their approval by the
Attorney General and their registration by the Comptroller of
Public Accounts.
SECTION 25: BE IT FURTHER ORDAINED BY THE CITY
COMMISSION OF THE CITY OF LUBBOCK:
That the sale of the bonds herein authorized to --
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at the price of par and accrued interest to date of delivery
plus a premium of $ \, i ~'t'. oo is hereby confirmed. Delivery
of the bonds shall be made to said purchasers as soon as may
be after the adoption of this ordinance, upon payment therefor
in accordance with the terms of sale.
SECTION 26: 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 of Lubbock that the authorized construction of improve-
ments and extensions to the City1 s combined Waterworks and
Sanitary Sewer System as hereinabove set out, be effected at
the earliest possible date, creates this an emergency measure
for the immediate preservation of the public peace, property,
health and safety, as well as a more efficient administration
and operation of the City•s above mentioned Systems, demanding
that the Charter 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 v i day of April,
1953. ~Texas
ATTEST:
(City Seal)
/
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
CITY OF LUBBOCK
COUNTY OF LUBBOCK I
I, Lavenia Lowe, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY that the above and fore-
going is a true and correct copy of an ordinance authorizing
the issuance of $2,045,000 "CITY OF LUBBOCK, TEXAS, WATER-
WORKS SYSTEM REVENUE BONDS,. SERIES 1953u, dated June 1,
1953, passed by the City Commission of said City on the
1ki' day of April, 1953, (and Minutes pertaining to its
adoption), and that it has been properly enrolled, placed
in the office of the City Secretary, and approved by the
Mayor, having been recorded in Book , page -------------
et seq., of the Minutes of said Commission.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the
Jk~ day of April, 1953.
~ ·~ '/It' /t
City weci'eary, ~Lubbock,
Texas.
(City Seal)