HomeMy WebLinkAboutOrdinance - 2396-1958 - $3,379,000 Waterworks System Revenue Bonds - 02/10/1958)
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ORDINANCE NO. 2396
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AN ORDINANCE AUTHORIZING ISSUANCE OF $3,3791 000
"CI'l'Y OF LUBBOCK, TEXAS, WATERWORKS SYSTEM
DVBHUE BONDS, SERIES l958tt, DATED
MARCH 1, 1958
THE STATE OF TEXAS
CITY OF LUBBOCK
COUNTY OF LUBBOCK I
ON THIS the lOth day ot Bebruary, 1958, the City
Comndssion of the Oity ot Lubbock, Texas, convened in SPECIAL
ses,ion at the regular meeting place theregf in the City Hall,
all the members thereof being present, to-wit:
S. S. FORREST, Ja.
LDNIS BADR
0. L. BYRD
HOMER G. MAXEY
DAVID CASEY
MRS. LA VENIA LOWE
MAYOR
)
j OOMMISSIONBBS
)
and
Oifi SECRETARY,
also being present; constituting a quorum, at which time the
following among other business was transacted:
Oouaissioner ___ --:;;..Bmt~-----presented for the Consider
ation ot the City Commission an ordinance authorizing the
issuance of "OI'l'Y OF LUBBOCK, TEXAS, WATERWORKS SYS'l'EM BEVBNUE
BONDS, SERIES 1958n, dated March 1, 1958, in the principal
sam of $3,379,000.
The ordinance was read in tul~ by the City secretar7.
Thereupon, Co.missioner Byrd moved that the ___ ....:;.. __ _
rule requiring that no ordinance shall be passed on the day on
whioh it ia introduced be suspended, ana that in view ot the
emergency set rorth and defined in the preamble to the proposed
ordinance, tbat~e same be declared an emergency measure.
l
J
This motion was duly seconded by commisa1oner _____ c~a-s~e~y---------·
The motion carried by the following vote:
YEAS: Mayor Forreat and OODUDiss1Gners Baker,
Byrd, Maxey and casey.
NAYS: None
Thereupon, Cammissioner Byni moved that the __ __;, ____ _
ordi.nance as read in tull by the City Secretary be tinally
passed and adopted by the Commission. This motion waa aeconded
by Oommisaioner ____ c_a_sey~-----------' and the mo,ion carrying
with it the final passage and adoption ot the ordinance, was
unantmoualy carried by the following vote:
YEAS: Mayor ~orrest and Commissioners Baker,
Byrd, Maxey and Casey.
NAYS: .None.
Thereupon, the Mayor announced that the ordinance had
been finally passed and adopted by unanimous vote ot the Com-
mission in accordance with the require.menta ot Sections 15, 16
and 17 ot Article IX ot the Lubbock Charter; and the Mayor
thereupon signed and approved the ordinance in the presence of
the Oomm1ss1on.
Tbe ORDINANCE is as follows:
ltUMBER 2396
"AN ORDINANCE by the Oity Commtaa1on of the City ot
Lubbock, Texas, authorizing the issuance ot bonds
in the principal sum of $3,379,000 ($275,000 Gf
such bonds being the fourth and tinal parcel or
installment or a total authorization of $4,644,000 bonds voted at an election held on the 9th day ot
December, 1952J and $3,104,000 ot such bonds being
the aeoond parcel or installment ot a total autho-
rization of $9,o80,000 bonds voted at an election
held on the 8th day ot November, 1955) ror the
purpose ot making permanent pub~1o tmprovementa,
to-wit: constructing improvements and extensions
to the City1 s Waterworks System, Sanitary Sewer
System and Electric Light System, as authorized by the General Laws of the State ot Texaa, particularly
v
Articles 1111 et ·ae•·~ Revised Civil Statutes ot
19256 as amended; preser!bing the to~ ot the bond
and the :form ot interest aoupon; pledging the
revenues ot the City1s Waterworks System to the
payment ot the principal ot and interest on the
bonds, after deduction ot reasonable expenses
ot operating and maintaining said system; enact-
ing provisions incident and relating to the subject
and purpose ot this ordinance; and declaring an
emergency."
WHEREAS, under and by virtue ot a resolution and order
duly passed and adopted by the City Commission ot the City ot
Lubbock, Texas, on the 21st day ot Noveaber, 1952, an election
was ordered to be held in said City on the 9th day ot »eoember,
1952, at which eleo~ion the following propositions were sub-
mitted to the qualified electors ot said 01ty:
"SHALL the City Oa..ission ot the City ot Lubbock.
Texas, be authorized to issue POUR MILLION ONE HUNDRED
NINET.EBN THOUSAND DOLLARS ($4,119,000) revenue bonds of said Oity tor the purpose ot making permanent public
improvements, to-wit: constructing ~provementa and ex-tensions to the 01tr•a Waterworks System; said bonds to
mature aerially over a period of not to exceed thirty (30)
yeara from their date~ and to bear interest at a rate
not to exceed THREE AND 'rHBEE-FOUBTHS PER CEN'fl»> (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 ot the Oity1s
Waterworks System, after deduction ofl8asonable operation
and maintenance expenses, as said expenses are defined by
statute?"
PROPOSITION NUMBBR 2
"SHALL the City Commission of the City or LubbockJ
Texas, be authorized to issue FIVE HUNDRED TWENTY PIVE
THOUSAND DOLLARS ($525,000) revenue bonds or said City for the purpose ot making permanen~ public improvements~
to-wit: constructing improvements and extensions to the
City's Sanitary Sewer System, said bonds to mature
aerially over a period of not to exceed thirty (30) years
from their date, and to bear interest at a rate not to
exceed THRBB AND THRD-J.i'OURTHS PER CENTUM (333/4~) 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
City1s Waterworks System, after de4uot1on ot reasonable
operation and maintenance expensea#aa said expenses are
detined by statute?11
3
AND WHEREAS, the said election was held pursuant to
said resolution and order on the 9th day of December, 1952; and
WHEREAS, this Oity Commission has heretof~re examined
into and investigated the regularity ot the proceedings tor said
election, and tound that the same was duly and legally held;
that the notice required by law to be given had been duly and
legally given; that said election was conducted in strict con-
formity with the law; and that due returns of said election bad
been made by the proper officers; and
WHEREAS, at said election, a majority of the qualified
voters who are property taxpayers of the City ot Lubbock, voting
at said election, sustained both ot ·the propoaitions to issue
the aforesaid bonds, 1n the aggregate principal sum of
$4,644,000; and
WHEREAS, this City Commission bas heretofore, to-wit:
on the ll~h day of December, 1952, adopted a resolution can-
vassing the returns and declaring the results ot said election
and determining the spee1tic 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 ot the two
series hereinabove mentioned were to be ratably secured in such
manner that no one bond shall have priority 0t lien over any
other bond or bonds, it being the intention to provide tor the
creation ot an indebtedness against tne City1a 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 aeries; and
WHEREAS, the City Comm1aaion heretofore, to-wit: on
the 24tb day ot April, 1953, adopted and passed an ordinance
by which $2~045,000 o~ the $4~644,000 uonds voted aa atoreaaid,
were authorized and issued, said ordinance having been ratified,
confirmed and approved by ordinance passed and adopted on the
26th day ot May 1 1953; $1,795,000 ot the bonds so issued being
for the construction of improveaents and extensions to the City's
Waterworks System, and $250,000 of the bonds so issued being
tor the construction ot improvements and extensions to the City 1a
Sanitary Sewer System; it being determined by the Oity Commis-
sion at that ttme that the remaining amount ot said bonds, to-wit
$2,599,000~ should be issued at a future date or dates, when in
the judgment of the City Commission, the proceeds ot the said
additional bonds are needed by the City tor the purposes tor
which authorized; it being also turther provided that it and
when such remaining $2,599,000 ot bGnds, or any portion thereof,
should be issued and sold, said bonds so issued and sold, to-
gether with the $2,045,000 ot bonds therein authorized to be
issued, should be ratably secured by a pledge of the net revenues
ot the City's Waterworks System in such manner that no one bond
ot the total authorized amount ot $4,644,000 shall have priority
ot lien over any other bond or bonds or said authorized amount;
and it being also turther provided that the City shall not issue
and sell any ot auch remaining bonds authorized at said election,
until such ttme as the City has secured troa a Certified Public
Accountant a certificate showing that the net revenues and income
ot the Waterworks System, after full p~ovisiona have been made
tor adequate maintenance and operation charges, tor the last
completed fiscal year immediately preceding the issuance and
sale ot the additional bonda1 is equal te at least two times
the average of the total annual principal, intereat and reserve
requirements provided tor the bonds authorized by the ordinance
or April 241 1953, as ratified~ confirmed and approved May 26~
1953 1 plus the average annual principal, interest and any
reserve requireaents ot the proposed bonds.; and that the Oity
has secured a certificate troa an Engineer registered by the
State Board ot Registration tor Professional Engineers ot the
State of Texas, showing that tbe prGJeoted net inco.e and reve-
nues of said Waterworks System, atter provision for adequate
maintenance and operation expenses, as estimated by him through-
out tbe maturities of all suoh bonds, will each year, be at
least two times the average annual principal, interest and re-
serve require.ents ot all bonds payable troa such revenues,
whiob will be outstanding atter tbe issuance of the additional
bonds; and
WHEHBAS, thereafter, t9-w1t: on the 9th day of Febru-
ary, 1954, it having been tound and deter.mined that all require-
menta pertaining to the issuance ot additional bonds ef the
voted authorization had been complied with, by ordinance duly
passed and adopted, the City Commission authorized the issuance
of an additional $1,000,000 of the $4,644,000 bonds voted as
aforesaid, said ordinance being thereafter amended on the 25th
day ot Webruary, 1954, such bonds being tor the construction
ot ~proveaenta and extensions to the C1ty•a Waterworks System,
it being determined by the Cit7 Commission at that time tbat
the reaa1n1ng amount ot said Bonds, to-wit: $1,599,000 should be
issued at a future date or dates when in the judgment ~t the Cit
Oomaiasion, the proceeds ot the said additional bonds are needed
b7 the City tor the purposes tor whic~ authorized; said ordinano
furth~r providing that the issuance ot additional bonds of the
voted authorization should be governed by the same covenants,
restrictions and limitations as those set forth in the ordi-
nance authorizing the issuance ot the $2,045,000 bonds ot the
first iastal~ent; and
WHEREAS, under and by virtue of a resolution and order
duly passed and adopted by the City Commissioa or the City of
Lubbock, 'l'exas, on the 21st day of October, 19551 &JK election
was ordered to be held 1n said Oi~y on the 8th day of November,
1955, at which election the tollowing propositions were sub-
mitted to the qualified electors of said Cityz
PROPOSITION HUMBER 1
. "SHALL the City comm1ss1on ot the City of
Lubboek, Texas, be authorized to issue THHEE MILLION
]i)OLLABS ($3,000,000) revenue boRda or saicl Oity for
the purpose of making permanent public improvements,
to-wit: constructing improvements and extensions to
the City's Waterworks System; said bonds to mature
serially over a period of not to exceed Thirty (30)
years rroa their date, and t(!) bear interest at a
rate not to exceed THBEE J.l«) 'l'HREE-POURTHS PBR CENTUM
(3-3/4-) per annum, payable annually or semi-annually;
said revenue bonds to be special obligations or the
City, payable as to both princ1pal and interest solely
from and secured by a first lien on and pledge ot the
revenues ot the City's Waterworks System, after de-
duction or reasonable operation and maintenance ex-
pence&, aa said expenses are defined by statute,?"
PROPOSITION NUMBER 2
"SHALL the City Commission ot the City of
Lubbock, Texas, be authorized to issue SIX MILLION
EIGH'l'Y THOUSAND DOLLARS ($6,080,000) revenue bonds of
sai4 City for the purpose ot making permanent public
improvements, to-wit: constructing improvements and
extensions to the Oity•s Electric Light System;
said bonds to mature serially over a period of not to
exceed Thirty (30) years trom their date, and to bear
interest at a rate not to exceed THBEB AND THREE-
FOUR'l'IIS PBB OBW.rUM (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 or the revenues ot the City1s Waterworks
System, after deduction ot reasonable operation and
maintenance expenses, as said expenses are defined by
sta~ute?"
AND WHEREAS, the said election was held pursuant to
said resolution and order on the 8th day of November, 1955; and
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WHEREAS, this City Collllission has heretofore examined
into an4 investigated the regularity of the proceedings tor said
election, and found that the same was duly and legally held;
that the notice required by law to be given had been duly and
legally given; and that said election was conducted in strict
cont~r.mity with the law; and that due returns of said election ha
been made by the proper otticers; and
WHEREAS, at said election, a maJority of the qualified
voters who are property taxpayers ot the City of Lubbock, voting
at said election, sustained both ot the propoaitisns to issue
the atoreeaid bonds, in the aggregate principal sum ot $9,080,000
and
WHEREAS, this City Commission has heretofore, to-wit:
on the lOth day of November, 1955, adopted a resolution can-
vassing tae returns and declaring the results of said election
and deter.mining 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
tberein mentioned were to be ratably secured in such manner
that no one bond shall have priority of lien over any other bond
or bonds so provided, and 10 that no one bond authorized at the
election therein ordered shall have priority or lien over any
of tbe $4,644,000 Waterworks System Revenue Bonda authorized at
the election held in said City on the 9th day of December, 1952,
it being the intention to provide for the creation ot an in-
debtedness against the Cityta Waterworks System tor the purposes
stated; and whioh bonds, it approved by the qualified voters,
voting at said election, were to be issued in one or more in-
stallments, but as a single combined authorization payable from
the net revenues of the City's Waterworks System on a parity
with the $4,644,000 Waterworks System Revenue Bonds authorized
at the election held in the City ot Lubbock, Texas, on tbe 9th
day ot December~ 1952, as aforesaid; and
WHEREAS, thereafter, to-wit: 0n the 14th day of
Februar,r 1956, it having been round and determined that all
requirements pertaining to the issuance of additional bonds
as provided in the ordinances authorizing the issuance of
the two installments or bonds voted at the election ot
December 9, 1952 had been complied with~ by ordinance duly
passed and adopted, the City Commission authorized the issuance
ot an additional $1,324,000 being all the remaining bonds voted
for constructing improvements and extensions to the Oity1s
Waterwo~a Systea at the election ot December 9, 1952, it
being determined by the Oit7 Commission at that time that the
remaining amount ot said Bonds, to-wit& f275,000 voted tor
constructing improvements and extensions to the City's Sanitary
Sewer Syate• should be issued at a future date or dates when
in the judgment ot the City Co~ssion~ the proceeds ot the
said additional bonds are needed by the City for tbe purposes
tor which authorizedJ and
WHEBEAS, by the same ordinance of February 15, 1956,
the City CoJIIIIlission authorized the issuance ot $5,976,000 bonds
ot tbe $9,080,000 bonds authorized at the election ot Noveaber
8, 1955, being $2,476,000 for constructing improvements and
extensions to the City's Waterworks System and $3,500~000 tor
constructing improvements and extensions to the CitJis Electric
Light System, it being detei'IIined that the remaining amount
or said bQnda, to-witz $524,000 bonds tor constructing improve-
menta and extensiaa to the C1ty•s Waterworks System, and
$2,580,000 bonds for constructing ~provementa and extensions
to the Cit~•s Electric Light System, aggregating $3,104,000
should be issued at a tuture date or dates, when in the judgment
ot the City Commission the proceeds ot said additional b~nds
are needed for the purposes for which authorized; and
WHEREAS, said ordinance of February 15, 1956 further
provided that if and wben such remaining $275,000 ot bonds
heretofore voted at the Election of December 9, 1952, and the
remaining $3,m04,000 ot bonds voted at the Election of November
8, 1955, or any portion thereof, should be 1aaued and sold,
said bonds, so issued and sold, together with the $2,045,000
or bonds dated June 1, 1953, the $1,000,000 of bonds dated
March 1, 1954 the $1~)00,000 of bonds dated March l, 1956,
and such other bends of the $4,644,000 authorization voted at
the election of December 9, 1952, and such other bonds ot the
$9,080,000 .authorization voted at the election of November 8,
1955, as may have been issued and sold shall be ratably secured
by a pledge ot the net revenues of the Oity•s Waterworks System
in such mann~r that no one bond or the total authorized amount
ot $4.644.000 or the total authorized amount or $9,o80,000 afore-
said. shall have priority or lien over any other bond or bon4s
ot said authorized amounts; and
WHBRBAS, it was provided in the ordinances authorizing
the issuance ot the b~nds dated June 11 1953, larch 1. 1954 and
March 1, 19561 that the City shall not_isaue and aell any ot
such remaining bonds until such ttme as the City has secured
from a Catif1ed Public Accountant a certificate showing that
the net revenues and income of the Waterworks System after
full provisions have been made tGr adequate maintenance and
operation chargesJ for the last completed fiscal year ~ediate
ly preceding tbe issuance and sale ot the additional bonds ia
}0
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equal to at least two times the average annual principal interest
and reserve requirements provided for the bonds dated June 1,
1953, the series ot bonds dated March 1, 1954 and the aeries
ot bonds dated March l, 1956, plus the average annual interest
principal and any reserve requirements ot the proposed bondsJ
and in addition that the City haa secured a certificate from an
Engineer regtatered by the State Board or Registration for Pro-
fessional Engineers ot the State ot Texas, showing that the
projected net income and revenues of said Waterworks System,
after providing tor adequate maintenance and operation expenses,
as estimated by him throughout the maturities ot all such bonds,
will each year, be at least two times the average annual pr1noipa
interest and reserve requirements ot all bonds payable from
such revenues, which will be outstanding arter the issuance ot
the additional bonds~ and
WHEHBAS, it is now found and determined by the Oity
Commission ot the City ot Lub~ook, !exas, that the City 1& not
1n default as to an7 covenant, condition or obligation contained
in the ordinance of April 24, 1953, aa ratified, approved and
confirmed on May 26, 1953, or the ordinance of February 9, 1954,
as amended on Pebrurary 25, 1954, authoriztg the issuance of
the first and aecond installments ot the bonds voted at the elec-
tion ot December 9, 19521 and that the City is not in default
as to any covenant, condition or obligation contained in the
ordinance or Pebruar,y 14th, 1956, authorizing the issuance of
the third installment ot bon4s voted at the election of
December 9, 1952 and the first installment ot bonds voted at the
election or Novembeb 8, 1955; and
WHEREAS, it is now round and determined by the Oity
Cemmiss1on that the net revenues and income of the Waterworka
S7stem of the City or Lubbock~ Texas, fQr the last completed
fiscal 7ear ~ediately preceding the sale of the bonds herein
authorized, and being the fiscal year ending September 30, 1957 ..
after ."deducting adequate maintenance and operation expenses /. t;
have been certified by ____ ~R~o~b=er-t._E~·-A~b~b~e----------------~' a
Certified Public Accountant, to be equal to at least two times
the average of the total annual principal, intereat and reserve
requirements provided for the bonds authorized heretotore,-
bei~g $2,045,000 "Orl'Y OJ' LUBBOCK, TEXAS, WATERWORKS SYSTEM
REVENUE BONDS, SERIES l953tt, dated June 1, 1953, the $1,000,000
"CITY OF LUBBOCK, TEXAS, WA'fBRWOftKS SYSTEM REVENUE BONDS,
SERIES l954tt, dated March l, 1954; and the $7,300,000 "CITY OF
LUDOOK, TEXAS, VA'l'EHWORKS SYSTEM BEVENT:JE BONDS, SERIES 1956" 1
dated Mareh 1, 1956; and the average annual principal, interest
and reserve requirements et the $3,379,000 additional bQnds
herein authorized to be issuedJ and further, that the City has
secured a certificate from John Hickerson ,an
------------------------------~ Engineer registered by the State Board or Registration tor
Prot•saional Engineers of the State ot Texas, showing that the
projected net incoae and revenues or aaid Waterworks System,
after providing for ade•uate maintenance and operation expenses,
as estt.ated by him throughout the maturities or all the bonds
heretotore and herein authorized, will each year, be at least
two tiaea the average annual principal, interest and reserve
requirements ot the Series 1953 Bonds, the Series 1954 Bonds,
the Series 1956 Bonds, and of the bonds herein authorized tG
be ia·aued; and
WHEREAS, it is now determined by the City Commission
that it is desired at this time to issue all ot the remaining
bonds voted tor constructing iaprovementa and extensions to
the City's Sanitary Sewer System at the election or December
9, 1952 in the amount of $275,000;
WHEREAS, it is also now determined by the Oity Com-
mission that it is desired at this time to issue all of the
remaining bonds voted at the election of November 8, 1955 being
$524,000 bonds for constructing improvements and extensions
to the City's Waterworks System and $2,580,000 bonds tor con-
structing improvements and Extensions to the Cityts Electric
Light System, aggregating $3,104,000; and
WHEREAS, it is considered, tound and deter.mined that
it is advisable and 1n the best interest ot the Oity Q! Lubbock
to make appropriate provision• herein tor the future issuance
or additional revenue bonds tor water, sewer and electric pur-
poses, which, it and when authorized in accordance with law,
are to occupy a position ot parity and enjoy an equality ot
lien on the revenues ot the City's Waterworks System with the
bonds authorized at the elections ot December 9, 1952 and
November 8, 1955; and further to herein prescribe the restric-
tions, eovenanta and ltmitat1ons which shall govern the issuance
ot suoh additional parity bondSJ and
WHEREAS, it is FOUND DETERMINED AND ADJUDGED that it ia
necessary and to the best interest ot the City to construct
improvements and extensions to the City's Waterworks System,
Sanitary Sewer System and Electric Light System at the earliest
possible date, tor the immediate preservation of the public
peace, property, health and safety of the citizens of the CitJ
or Lubbock, Texas, and that by virtue thereof this ordinance
shall be passed and adopted as an emergency measureJ therefore
BE IT ORDAINED BY THE CITY COMMISSION OF THE OITY OF
LUBBOCJCs
SECTION 1: Authorization -Principal Amount -Designa-
tion. That in order to borrow the said sum of THREE MILLION
'l'HREE HUNDRED DVENTY NINE THOUSAND DOLLARS ($3,379,000), tor
l3
the purpose of making permanent public improvements, to-wit:
constructing improvements and extensioas to the Oity1 a Waterworks
System, Sanitary Sewer System and Electric Light 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 elections and pursuant to
the General Laws of the State of Texas, particularly Articles
llll et aeq. Texas Revised Civil Statutes of 1925, as amended,
has determined that there shall be issued and there is hereby
issued a series of coupon bonds in the tot&lprincipal sum of
THREE MILLION 'l'HREB HUNDBED SEVENTY NINE THOUSAND DOLLARS
($3,379,000), ($275,000 of such bonds being a tourth and final
parcel or installment of a total authorization of $4,644,000
bonds voted at an eleat1on held on the 9th day ot December,
1952; and $3,104,000 of sueh bonds being the second and final
parcel or installment of a total authorization of $9,0SO,OOO
bonds voted at an election held on the 8th day of November,
1955), such bonds to be designated "CITY OF LUBBOCK, TEXAS,
WATERWORKS SYSTEM REVENUE BONDS, SERIES 195811 , payable as to
both principal and interest solely from and secured by a first
lien on and pledge of the revenues ot the 01ty 1s Waterworks
System after deduction of reasonable operation and maintenance
expenses, as said expenses are defined by statute.
SECTION 2: Date, Numbers, Maturity and Option •
That said bonda small be dated March 1, 1958; shall be numbered
consecutively from One (1) to Three Thousand Three Hundred
" Seventy Nine (3379), both inclusive; shall be 1n the denomina-
tion ot one Thousand Dollars {$1,000) each; and shall becgme
due and payable serially, w1thGut right of prior redemption,
in aooordance with the following schedule:
BOND NUMBERS
(All Inclusive} MA 'rtJRI'l'Y DATES AMOUNTS
1 to 135 June 1~ 1959 $1351000
136 to 270 June 11 1960 135,000
271 to 405 June 1, 1961 135,000
406 to 540 June 1, 1962 135,000
541 to 684 June 1, 1963 144,000
685 to 829 June 1, 1964 1451000
830 to 974 June 1., 1965 145.-000
975 to 1119 June 1, 1966 145,000
1120 to 1264 June 1, 1967 145,00G
1265 to 1409 June 1, 1968 145,000
1410 to 1554 June 1, 1969 145,000
1555 to 1699 June 1, 1970 145,000
1700 to 1839 June 1, 1971 140,000
1840 to 1979 June 1, 1972 140,0QO
1980 to 2119 June 1, 1973 140,000
2120 to 2259 ·June 1, 1974 140,000
2260 to 2399 June l, 1975 140,000
2400 to 2539 June l, 1976 140,000
2§~0 to 2679 June 1, 1977 140,000
2680 to 2819 June 1, 1978 140,000
2820 to 2959 June 1, 1979 140,000
2960 to 3099 June 1, 1980 140,000
3100 to 3239 June 1, 1981 140,000
,3240 to 3379 June 1, 1982 140,000
SECTION 3: Interest. That said bonds shall bear
interest trom date until paid at the following rates per annum,
that is to say:--
(a) Bonds Numbered 1 to ~4-o , both inc1aaive,
maturing on June 1st in eaeh Gf the years 1959 to 19 bJc:,
both inclusive, shall bear interest at the rate or
l..a...:.\\...:.~~t:~c_+-.:..-;~:..:.'1.~.o~Ro.~o~t"~~E._-...~t....:OU~J\.,::C.a..:kt§.:..&.;:;:. ________ ~PER CENTUM
( >3 .sJy.-"') per annwn;
(b) Bonds Numbered ..{ l} i to _b~e -4-tf: _ _., both in-
elusive, maturing on June lst in each or the years 19 b~
t0 19 ---, both inclusive, shall bear interest at the
rate or ]1\\\,EE "~ •l=o\tt'-\ \-\\)f\) b Bth£.
( -3. '+o ~) per annum;
(a ) Bonds Numbered I-K to l. '!-o 1
PER CENTUM
, both in-
elusive, maturing on Jwne lat in each ot the years l9~b~¥~-
to l9_k~Z----• both inclusive, shall bear interest at the
rate ot'ttl\\EG fhJh C!J E -J=oul\tl'f
( 3 '/'{: -) per annum;
PER CENTUM
( C!l) Bonds Numbered 14 1 o to .:3,-3 1 j , both in-
elusive, maturing on June lat in each or the years 19 bq
to 19 ~ Y , both inclusive, shall bear interest at the
rate or 'T\\-Rt:~ /tllh l::J>\3.-r 'j H-"NP Re.laP PER CEN'.rml
( 3. 4--o ~) per annum; and
(e) Bonds Numbered to , both ------------
inclusive, maturing on June lst in each or the years 19 -
to 19 , both inclusive, shall bear interest at the
rate ot PER CENTUM
{ ~) per annum.;
such interest tG be evidenced by proper coupons attached to each
ot said bonds, and said interest shall be payable on December l,
1958, and se~1-annually thereafter on June lst and December lst
in each year.
)b
SEO'I'ION 4: PLACE OF PAYMENT That both principal and
interest of this issue of bonds shall be payable in lawful money
or the United States or America, without exchange or collection
charges to the owner or holder1 at THE FIRST NATIONAL CITY BANK OP
NEW Y0BK1 New York, New York, or at the holder•s option at the
CITIZENS NATIONAL BANK1 LUBBOOK1 TEXAS, upon presentation and
surrender of bonds or proper coupons.
SEOTION 5: Execution ot Bonds and Coupons. That the
eorpo~ate seal of the "CI'rY OF LUBBOCK, TEXASn shall be impressed
upon e,ch ot said bonds and said bonds and the interest coupons
appurtenant thereto may be executed by the imprinted facsimile
signatures ot the Mayor and City Secretary ot the City, and exe-
cution in such manner shall have the same erreet as if such
bonds and coupons had been signed by the Mayor and City Secretary
by their manual signatures. Inasmuch as such bonds are required
to be registered by the Oomptroller ot Public Accounts of the
State of Texas, only his signature (or that of a deputy designated
in writing to act tor the Comptroller} shall be required to be
manually aueacribed to such bonds in connectian with his regis-
tration certificate to appear thereGn1 as above provided; all 1n
accordance with the provisions ot Chapter 2931 enacted by the
54th Legislature ot Texas at its regular session in 1955 (codified
as Article 717J vernon's Annotated Civil Statutes of Texas~ 1925
as amended) •
SECTION 6: Form ot Bonds. That~ the form ot said bonds
shall be substantially as follows:
NO. __ :.·,tJBITED STATES OF AMERIOA
STATE OF TEXAS
COUNTY OF LUBBOCK
Cifi OF LUBBOCK1 TEXAS 1 WATERWORKS SYS'l'EM
REVENUE BOND1 SERIES 1958
$11000
FOR VALUE RECEIVED, the City of Lubbock, a municipal
corporation 0t the State ot ~xas, hereby acknowledges 1tselt
indebted to and promises to pay to bearer, as hereina£ter stated,
without right of prior redemption on the FIRST DAY OF JUNE, 19 ___ ,
the sum of
ONE THOUSAND DOLLARS
{$1,000), 1n lawtul money ot the United States of '-rica, with
interest thereon tram the date hereof until paid, at the rate
of ____________ ...,.PER OBNTOM ( ___ -'tf,) per annum,
payable on December l, 1958, and semi-annually thereafter on
June lst and December lst in each year, and interest falling due
en or prtr te maturity hereof is payable only upon presentation
and surrender or the interest coupons hereto attached as they
severally become due.
BOTH PRINCIPAL and interest or this bond are hereby made
payable at '1'HB FIRST NATIONAL CITY BANK OP NEW YOHK, New York,
Hew York, or at the holder 1s option, at the CITIZENS NATIONAL
BAHK, Lubbock, Texas, without exchange or collection charges to
the owner or holder, and the said City of Lubbock, Texas, is
hereby held and firmly bound to apply the pledged appropriated
revenues of ita waterworks System to the prompt payment ot prin-
cipal and interest of this bond at maturity, and to pay said
principal and interest as they mature.
THIS BOND is one of a series 0f bonds ot like tenor and
ettect; except as to number, interest rate and maturity, aggre-
gating in amount 'fHBBE MILLION 'l'Hl1EE HUNDRED SBVBN'l'Y NINE 'l'HOUS
DOLLARS ($3,379,000), ($275,000 of such bonds being a fourth and
final parcel or installment ot a total authorization of $4,644.00
} ~
bonds voted at an election held on the 9th day of December, 1952;
and $3,104,000 ot such bonds being the second and final parcel
or~atallment ot a total authorization or $9,080,000 bonds voted
at an election held on the 8th day ot November, 1955), numbered
consecutively from One (1) to Three Thousand Three Hundred Sevent
Nine (3379), both inclusive, in denomination of One Thousand
Dollars ($1,000) each, issued tor the purpose ot making pe~nent
public improvements, to-wit: constructing improvements and
extensions to the City•a Waterworks System, Sanitary Sewer System
and Electric Light System, in accordance with the constitution
and laws ot the State of Texas, particularly Articles 1111 et
seq., Revised Civil Statutes of 1925, as amended, and oy authorit
ot a vote Gt the qualified property taxpaying voters of said
City, who had duly rendered their property for taxation, voting
at electi0na held for that purpose within said City on the 9th
day of December, 1952, and on the 8th day of November, 1955,
and pursuant to an ordinance passed by the City Oommission of
the City or Lubbock, Texas, and duly recorded in the Minutes
of the City Commission.
THE DATE ot this bond in confQrmity with the ordinance
above mentioned ia March 1, 1958.
THIS BOND and the aeries ot which it is a part, to-
gether with the $2,045,000 "CITY OF LUBBOCK, TEXAS, WATERWORKS
SYSTEM REVENUE BONDS, SERIES 1953n, dated June 1, 1953, the
$1,000.,000 "CITY OF LUBBOCK, TEXAS, WATERWORKS SYSTEM REVENUE
BONDS, SBRIBS 1954", dated March 1, 1954, and the $7,300,000
"CITY GP LUBBOCK, TEXAS, WATERWORKS SYSTEM RBVENUE BONDS,
SERIES 1956", dated March 1, 1956, constitute special obligations
ot the City of Lubbock, and are payable as to both principal
an4 interest trom and equally secured by a first lien on and
pledge of the revenues of the City•s Waterworka System, atter
deduction or reasonable expenses of operation and maintenance.
THE CITY reserves the right to issue additional bonds
and obligations payable trom the net revenues ot the WaterWQrks
System on a parity with the bonds ot this issue, with the
$2,045,000 noiTY OP LUBBOOK, TEXAS, WATERIPHKS SYST.EK HEVBNUE
BONDS, SERIBS 1953", dated June 1, 1953, the $1,000,000 "CITY
OF LUBBOCK, TEXAS, WA'f.EBWOBKS SYSTEM REVENUE BONDS, SERIES 1954n,
dated larch 1, 1954, and the $7,300,000 "CITY OF LUBBOCK, TEXAS,
WATERWOBKB SYSTEM RBVBNUE BONDS, SERIES 1956", dated March 1,
1956, but pursuant to and subject only to the reat~tctions,
covenants and limitations contained in tbe ordinance authorizing
this issue or bonds, to which reference is made for full parti-
culars.
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.
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
tor value without notice and to agree that, being payable to
bearer, this bond and each or the interest coupons attached, may
be negotiated by delivery however possession may have been
acquired, and that any subsequent holders who may receive this
bond or any ot the interest coupons attaahed, for value without
notice, has thereby acquired absolute title tree from all equi-
ties and claims or ownership or any pr19r helder. Tbe City or
LubbQc~, its officers and the paying agents shall not be affected
by any notice to the contrary.
AND IT IS HEREBY CERTIFIED AND RECITD that the iasu-
ance or this bond1 and the series ot which it is a part1
is duly authorized by law; that all acta, conditions and things
required to exist and to be done precedent to and in the issu-
ance of this bond to render the same lawful and valid have been
properly done, have happened and been performed in regular and
due time, form and manner as required by the Constitution and
laws of the State of Texas and the ordinance hereinabove men-
tioned; that this series of revenue bands 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 TESTIJIIONY WHEREOF, the 01 ty Commission of the City of
Lubbock, Texas, has caused the aal ot said Oity to be impressed
hereon, and this bond and its appurtenant coupons to be executed
with the imprinted facsimile signatures of the Mayor and Oity
Secretary of said City (in accordance with the provisions of
Chapter 293, enacted by the 54th Legislature ot Texas, at its
regular session in 1955), the date ot this bond, in confo~ty
with the ordinance abGve referred to, being the 1st day or
March, 1958.
Miyor, city~or tubhock, texas
COUNTBRSIONED'
01~y Secretary, city ot Lubbock,
Texas.
SECTION 7: Coupon Po~. The form ot said interest
coupons shall be substantially as follows:
NO. --Oll THE ___ DAY OF __
19_:~ ·--
the CITY OF LUBBOCK, a municipal oerparati.on of the State of Texas,
hereby promises to pay to the bearer:J out of funds specified in
the bond to which this ooupon is attached {without right to demand
payment out ot any tunda raiaed or to be raised by taxation), and
in lawful money ot the United States of America, without exchange
or collection charges to the owner or holder, at THE FIRST
NATIONAL OITY BANK OF NEW YORK, New York New York, or at the
holder1a oPton, at the CITIZENS NATIONAL BANK, Lubbock, Texas,
the sum of
-------------------DOLLARS
($ ), said sum being months' interest due
that day on "CITY OF LUBBOCK, TEXAS,. WA'l'ERWORKS SYSTEM REVENUE
BOND:~ SERIES 1958'' :J dated March 1, 1958. Bond No.----
city Secretary Mayor
SEO'l'ION 8: Form ot Comptroller1 a Certificate. Sub-
stantially the following shall~be printed on the back of each bond
OFFICE OF COMPTROLLER
STA '1'E OF TEXAS I REGISTER NO. ----
I HKRBBY CERTIFY that there is on tile and ot record in
my office a certificate of the Attorney General or the State or
Texas, to the etteot that this bond has been examined by him as
required by law, and that he tinds that it has been issued in
yv
oontor.mity with the Constitution and laws of the State or Texas#
and that it is a valid and binding special obligation ot the
City ot Lubbock, Texas, payable from the revenues pledged to
ita payment by and in the erdinance aut~orizing same, and said
bond has this day been registered by me.
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas,
------------------------·
ca.ptrol!er ot PUblic lcoounts or
the State or Texas
SECTION 9: Requirement Schedule: That the tGllowing
1a a schedule of the principal and interest requirements, showing
also the total annual requirements of said "CITY OF LUBBOCK,
TEXAS, WATERWORKS SYSTEM REVENUE BONDS, SERIES 1958", that is
t0 aay--
YEAR ENDING
JUNE lst
1959
1960
1961
1961°
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
PRINCIPAL
$135,000
135,000
135,000
135,000
144,000
145,000
145,000
145,000
145,000
145,000
145,000
145,000
140,000
140,000
140,000
140,000
140,000
140,000
140,000
140,000
140,000
140,000
140,000
140,000
INTEBBST
$144,610
110,626
105,563
100,501
90,542
85,830
81,117
76,405
71,692
66,980
62,050
57,120
52,360
47,600
42,840
38,080
33,320
28.,560
23,800
19,040
14,280
9,520
4,760
TOTAL ALL REQUIREMENTS
$279,610
245,626
240,563
235,501
239,438
235,542
230,830
226,117
221,405
216,692
211,980
207,050
197,120
192,360
187,600
182,840
178,080
173,320
168,560
163,800
159,040
154,280
149,520
144,760
No mistake in the foregoing calculations shall in
any manner operate to diminish the payment or the amounts to be-
come due on said bonds, but an amount is hereby ordered to be
set aside for each of the years specified, sufficient to meet th
requirements hereof in all respects.
SECTION 10: Oreating Special Fund, Use of Surplus
Funds. The City of Lubbock, Texas, covenants, reaffirms and
agrees that, as received, all operating income and reT•aues
of its Waterworks System shall be first deposited in an account
designated the "Waterworks System. Fund 11 kept separate and apart
from all Gther !'unds or accounts, and.turther that saic:J "Water-,
workS 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 reason-
able expenses of operation and maintenance of the waterworks
System as said expenses are defined by statute.
Second: To the "SPECIAL WATERWORKS SYSTEM BEVENUE
BOND RETIREMENT AND RESERVE-FUND" heretofore created and
hereby reaffir.med, for the payment of the principal and
interest of the bonds heretofore and herein authorized as
the same fall due and mature, and to be used tor no other
purpose.
Third : To any other proper city purpose now or
hereafter permitted by law.
The tollGwing provisions shall govern the creation
and maintenance of the aforesaid "SPECIAL WATERWORKS SYSTEM REVE-
NUE BOND BEI'l'REMENT AND BESERVB FUND" r
The entire net income and revenues of the City 1s
waterworks System remaining after operation and maintenance
expenses are deducted, have been heretofore and are hereby
reaffirmed to be irrevocably pledged to said Special Fund, in
amounts sufficient to produce the total annual principal and
interest requirements of the revenue bonds heretofGre and herein
authorized, as such total requirements are shown in the schedules
relating thereto as set out in Section 10 ot the aforesaid ordi-
nance of April 24, 1953, in Section 10 or the aforesaid ordinance
of February 9, 1954, in Section 9 of the aforesaid ordinance of
February 14, 1956, and in Section 9 of this ordinance; AND,
IN ADDITION to the reserve port~on of said Speeial Fund establish-
ed for the three series of bonds aforesaid in the ordinances
pertaining to their authorization (in the aggregate sum of
$6oo;·ooo in excess of all amounts required to fully meet and dis-
charge principal and interest installments with respect to said
three series ot bonds), tor the bonds herein authorized the
Special FUnd shall also contain a reserve and to establish
such reserve shall be supplemebted each month hereafter by tae
amount ot $3,335.00, until such time as the said reserve portion
ot said Special FUnd pertaining to the bonds herein authorized
shall total $200,000 !n excess of all amounts required to tully
meet and discharge the principal and interest installments
thereof falling due on or before the next succeeding principal
maturity date. It is hereby declared to be the oity1s purpose
and intent, and said City so covenants and agrees that when
finally established in accordance with the provisions hereof,
the amounts to be maintained in said Special Fund tor the bonds
herein authorized shall eontinuosly be in excess of any parti-
cular year's principal and interest requirements of the bonds
herein authorized by the sum ot $200#00Q# as a reserve tor use
in meeting the requirements of said bonds, it need be, and that
this arrangement shall continue aad said Special Fund shall be
continuously supplemented as necessary to maintain said reserve
until said bonds with all interest thereon have been tully paid
and discharsed, or until sue» time as the Special Pund~ plus
said reserve, shall contain amounts equal to the total principal
and interest requirements of the bonds then outstanding at their
tina~ maturity. The City Treasurer is authorized and directed to
calculate the amounts required annually as aforesaid {including
said reserve) and to withdraw said amounts thus deter.ained
.from the aforementioned "Waterworks System Fund", and deposit
same in said n SPECIAL WATBBWOBltS SYSTEM BEVENUE BOD RETIREMENT
AND RESERVE FUND" in equal menthl¥ installments on or betore
the 15th day of each month. The CrfiZENS NATIONAL BANK,
Lubbock, Texas, bas been heretot~re, and is hereby reaffirmed
to be ~he custodian o.f said Special JUnd, and the deposits
above prescribed shall be transmitted to said tund with said
bank. In the event the income and revenues of the City's Water-
works System are insufficient in any month to permit the required
deposits into the Special FUnd in full accord with the provisions
hereof, then the amount of any deficiency shall be added to the
amount otherwise required to be deposited in said fund in the
next month, until all deficiencies are rectitied.
The custodian bank is authorized to invest the reserve
portion ot said Special FUnd 1n short ter.m direct obligations
or the United States ot America, maturing not later than five
years from their date1 as the City Commission may direct. Said
obligations shall be held by the aforesaid custodian bank and
it at any time uninvested funds shall be 1nsurticient to
per,mit payment or 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 re-
quired to pay said bonds and interest when due~ and shall give
due notice thereof to the City of Lubbock. All moneys resulting
from the maturity of principal and interest of the securities in
which :tbe reserve funds are invested may be reinvested or accumu-
lated in said reserve portion of said Special Fund and considered
a part thereGf and used for and only for the purposes hereinabove
provided with respect to said reserve.
Any funds rema1ntpg on band as the proceeds or the
perat1ng 1nceme and revenues or the City1s Waterworks System
after first making full provisions for the purposes and funds
referred to in the foregoing paragraphs may be used by the Oity
for the payment or bonds then outstanding and eligible for prior
redemption and the purchase of bonds in the open market at not
exceeding the market value tbereot, or tor any ather purpose
which may new or hereafter be permitted by law.
SECTION 11: Definition of System. For all purposes of
this ordinance and in particular w1ta respect to the pledge and
appropriation of revenues herein prescribed, the ter.m 11Waterworks
Syatem" ot the City of Lubbock, Texas, shall include the Water-
works System or sai4 City,tDg~ther with any additions and exten-
sions thereto and impreveaents and replacements thereof.
SECTION 12: Rates and Charges. The City of Lubbock
further covenants, reatf1~s and agrees that, so long as any of
the revenue bonds and coupons herein authorized, or any of the
revenue bonds dated June l, l95B, March l, 1954 or March l, 1956,
are outstanding and unpaid, it will fix and maintain rates and
collect charges fGr the ~acil1t1ea and services afforded by its
Waterworks System which will produce income and revenues autf1-
cient at all times to:
{l) Pay all operation, maintenance, depreciation
and better-ment charges and expenses of said System; and
{2) FUrther establish and tully maintain the
above mentioned "SPECIAL WATERWORKS REVENUE BOND RE!fREMENT
AND RESERVE FUND."
SECTION 13: Further Covenants. The City further
Govenants1 reaffirms 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
~evenues supporting this issue of bonds, and has
lawfully exercised said power under the Constitution
and laws of the State Gf 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 or a vote
ot the qualified electors of said City, voting at the
elections held on the 9th day of December~ 1952, and
on the 8th day of November, l955J that the bonds issued
hereunder, together with the three series of previously
issued revenue bonds~ to-wit: $2,045,000 dated June l,
1953, $1,000,000 dated March 1, 1954~ and $7,300,000 dated
March 1, 1956, hereinafter referred to, shall be ratably
secured in suoh manner that one bond shall have no pre-
ference over any other bond of said issues; and
(c) That, o;her than for the payment or the bonds
heretofore and hereby issued1 the r.ents, revenues and
iqoome ot the said Waterworks System have not been in any
manner pledged to the payment of any debt or obligation
ot the Oity and/or said System, and that said System
ia free and clear or all encumbrances whatsoever.
r't
Uu
SECTION 14: Issuance ot Additional Parity Bonds.
The City of Lubbock hereby reaffirms that it 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 conditions hereinafter
appearing~ such additional bonds shall be on a parity with the
series of bonda herein authorized# the series ot bonds dated
June 1# 1953# those dated March 1 1 1954~ and with those dated
March 1# 1956. Upon issuance as aforesaid, said additional
parity bonds shall be equally and ratably secured with the bands
herein and heretQfore issued, gy a first lien on and pledge ot
the revenues ot the City's Waterworks System. The City covenants
and agrees1 however, tha~ it will not issue any other revenue
bonds or obligations of any nature payable from the revenues ot
the City's Waterworks System on a parity with the bonds herein
and heretofore authorized, unless and until all the following
conditions have been met:
(a) fThat the City is not then in default as to
any covenant~ condition or obligation contained in this
ordinance, or the ordinance ot April 24, 1953, as ratified,
approved and confirmed on May 26, 1953, the ordinance of
February 9, 1954, as amended on Februar.y 25, 1954, and
the ordinance of February 141 1956;
(b) The proposed additional bonds shall have been
favorably voted at an election duly .called and held tor
tha~ purpose;
(c) That the Oity has secured a certificate from
a Certified Public Accountant showing that the net revenues
and income or the Waterworks System, after full provisions
have been made tor adequate maintenance and operation
3o
charges~ tor the last completed fiscal year ~ediately
preceding the issuance and sale of the additional bonds
is equal to at least two times the average of the annuaX
principal~ interest and reserve requirements provided
for the bonds herein authorized~ tor· the said $2~045~000
"City ot Lubbock~ Texas, Waterworks Revenue Bonds, Series
1953"~ dated June 1, 1953~ tor the $1~000,000 "City of
Lubbock, Texas, Waterwork~ Revenue Bonds, Series 1954",
dated March 1, 1954, and tor the $7~300,000 "City ot
Luobo~k, Texas, Waterworks Revenue Bonds, Series 1~56",
' dated March l, 1956, plus the average annual interest,
principal and any reserve requirements of the additional
bonds; and in addition, that the City has secured a certi-
ficate trom an Engineer registered by the State Board ot
Registration tor Professional Engineers of the State of
Texas, sh6wing that the proJected net income and revenues
ot said Waterworks System, atter providing tor adequate
maintenance and operation expenses, as estimated by him
throughout the maturities ot all such bonds, will~ each
year, be at least two ttmes the average annual princip$1,
interest and reserve requirements ot all bonds payable trom
such revenues which will be outstanding atter the issuance
ot the additional bonds.
Such additional bonds~ when thus issued, may be secured
by a pledge ot the revenues ot the Waterworks System on a parity
with the pledge securing the issuance of the bonds herein
autaorized.
SECTION 15: Maintenance and operation. The City of
Lubbock hereby covenants~ reattirma and agrees to maintain the
Waterworks System facilities in good condition and operate
the same in an etticient manner and at reasonable cost. So long
as any ot the bonds herein and heretofore issued are outstanding
the City agrees to maintain insurance tor the benefit of the holde
or holders of the bonds ot 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
money _s received from losses under such insurance policies other
than tor public liability policies. are hereby pledged as security
tor the bonds until and ualess such proceeds are paid out in
making good the loss or damage in respect of which such proceeds
are received. either by replac~ng the property destroyed or re-
pairing the property damaged, and adequate provision tor making
good such loss or damage made within ninety (90) days from the
date of the loss. The payment of premiums for all insurance
policies required under the provisions ot this section shallbe
considered as maintenance and operation expenses.
SECTION 16: Records and Accounts. The City of Lubbock
hereby covenants and reattir.ms the tact that it has installed
and agrees that it will maintain a complete system of records and
accounts pertainimg 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 trans-
actions relating to said system, as provided by Article 1113
Revised.Oivil Statutes ot Texas, as amended. The City shall eon-
tine to cause an audit ot the records pertaining to the operation
ot the System to be made at the close of each fiscal year by an
independent auditor. said audit to include, among other things, th
following:
(a) A statement in detail of the income and expendi-
tures ot the System tor 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 requirements ot the
bond ordinances and his recolllllendationa, if any, forJJOhanges
or improvements in the operation of the Systems
{d) A list of the insurance policies in force at
the end of the year on properties ot the System, setting
out as to each policy the amount of the policy, the risk
covered, the name of the insurer, and the expiration date
ot 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 furnished
immediately to the Executive Director of the Municipal Advisory
Council of 'l'exaa at his office in Austln, Texas, and to any
bondholder upon his written request therefor, not more than
aixty days after the cloae of 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 of an o~erating and income state-
ment in reasonable detail covering such six month's period, to
any bondgGlder upon his written request therefor, not more than
thirty da;ys after the close of said six months' period.
SEOTION 17: Right to Inspect~system. Any purchaser
ot twenty-five per centum (25~) ot aggregate principal amount
of the bonds at the time then outstanding or any bolder or
aolders ot twenty-five per centum (2,.) ot said amount ot out-
standing bonds, shall have the right at all reasonable times
to inspect the System and all records, accounts and data of the
City relating thereto; and shall have the right to req~eat and
receive such financial stateaenta and other pertinent informa-
tion and data rellting to the City and the Waterworks System
as such purchaser from time to time may reasonable require.
SECTION 18: Remedies in Event ot Default. In addition
to all the rights and remedies provided by the laws of the State
ot Texas, the City covenants, reattirms and agrees that in the
event the City (a) defaults in the payment ot principal or inter-
est on any ot the bonds when due, (b) fails to make the payments
required by Section 10 of this ordinance to be made into the
"SPECI.AL WATERWORKS SYSTEM REVENUE BOND RETIREMENT ANJ) RESERVE
POND", or (o) defaults in the observance or performance ot any
other of the covenants, conditions or obligations set forth in
this ordinance, the following remedies shall be available;
(l) The holder or holders of any ot the bonds shall
be entitled to a writ ot mandamus issued by a court of
competent jurisdiction compelling and requiring the City
Commission and other officers of the 01ty to observe and
perform any covenant, obligation or condition prescribed
in the bond ordinance.
(2) No delay or o~asion to exercise any right or
power acoruing upon any default shall impair any such right
or power or shall be construed to be a waiver ot any such
default or acquiescence therein, and every such right and
power may be exercised from time to time and as often as
may be deemed expedient.
The specitie remedies herein provided shall be cumula-
tive ot all other existing remedies and the specifications of
such remedies shall not be deemed to be exclusive.
SECTION 19: Making Rates. Collecting Charges, No Pree
Service, Designating Fiscal Year. The City ot Lubbock further
covenants, reaffirms and agrees that it will faithfully and punc-
tually perto~ all duties with reference to the System as
required by the Constitution and laws of the State of Texas,
including the making and collecting ot reasonable and sutticient
rates for water aervieea aup;lied by the System, an4 the segre-
gation and application of the revenues of the System as required
by the provisions ot this ordinance. Tbe Oity covenants, re-
affirms and agrees that no tree service shall be rendered by
the System to any customers, including the Oity and its various
departments, and that all water services used by the City and
its various departments will be paid for at the same rates
charged other consumers. The fiscal year tor the operation of
such system shall be from October lst of each year to September
30th ot the succeeding year.
SECTION 20: Sale, Lease or other Encumbrance or
System. The City of Lubbock hereby irrevocably covenants,
reattirma, binds and obligated itself not to sell, lease or
in any manner dispose ot the Waterworks Systea1 or any part
thereof, including any and all extensions and additions that
may be made thereto1 until the bonds herein authorized to be
issued shall have been paid in tull as both to principal and
interest (provided that thia covenant shall not be construed
to prevent the disposal by the City ot property which in its
judgment haa become inexpedient to use in conneoti~n with the
System when other property ot equal val~e haa been auballtuted
therefor).
..
SECTION 21: Competition. That so tar as it legally
may, the Oity or Lubbock covenants and agrees, tor theprotec-
tion and security of the bonds herein authorized and the holders
thereGf from time to time, that it will not grant a franchise
for the operation of any competing Waterworks System in the City
ot Lubbock until all bonds issued pursuant to this ordinance,
the ordinance of April 24, 1953, as ratified, approved and
oonfirmed on May 26, 1953, the ordinance ot February 9, 1954,
as amended on February 25, 1954, and the ordinance of February
14, 1956, shall have been retired.
SECTION 22: Ordinance to Constitute Contract. That
the proviaiona or 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 or any kind ot 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 ~3: Mayor to Have Charge of Records and Bonds.
That the Mayor of said City shall be and he is hereby authorized
to take and have charge ot all necessary orders and records
pending investigation by the Attorney General of the State ot
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 24: Confirmation ot Sale. -----·
the bonds herein authorized to --
\--* f\ L~E 't ..s \ \) fH\ 1 Pt \J .b
~\-\;~L~~ \=E~N ~N b ~.
'!'hat the sale of
'
at the price of par and accrued interest to date of delivery
plus a premiwa ot $ \,3>(1~ is hereby confirmed. Delivery
of the bonds shall be made to aaid purchasers as soon as may be
after the adoption of this ordinance, upon payment therefor in
acc~rdanee with the terms of sale.
SECTION 25: Emergency. The fact that it is to the best
interest of the City of Lubbock that the authorized construction
ot improvements and extensions to the City's Waterworks Sy,~em,
Sanitary Sewer System and Electric Light SJ&tem as hereinabove
set out, be effected at the earliest possible date, creates tbis
an emergency measure for the immediate preservation of the public
peace, praperty, health and safety as well as a more efficient
a~inistration and operation ot the City's above mentioned
Systems, demanding that the Charter provis1Qn 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 ita passage, and it is
so ordained.
PASSED AND APPROVED, this the lOth day Gt February,
1958.
oitt~ary, ~ubb0ck,
Texas
(City Seal)
7.
THE S'l'ATE OF TEXAS
OITY OF LUBBOCK
COUNTY OF LUBBOCK
CERTIIIOATB Gli' OI'l'Y SECRETARY
I
I, Lavenia Lowe, City Secretary of the City of Lubbock,
Texas, DO HEREBY CERTIFY that the above and foregoing is a true
and correct copy of an ordinance authorizing the issuance of
$3,379,000 "City of Lubbock, Texas, Waterworks System Revenue
Bonds, Series 1958 .. , dated Jlaroh l, 1958, (and Minutes pertaining
to ita adoption), passed by the City CoDDD1ssion at said City on
the lOth day of February, 1958, 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 ;A( , page et se .,
ot the Minutes or said Commission.
IN,WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the lOth
day ot February, 1958o
Texas
(City Seal)