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HomeMy WebLinkAboutOrdinance - 2548-1958 - Issuance Of $950,000 City Of Lubbock TX Electrical Lighting - 08/14/1958ORDINANCE No • 2548 08 -lLf-LS 5 ~§4-8 ORDIRAHCE AUTHORIZING ISSUAHCK OF $950#000 "CIH OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE REFUNDING BONDS tt, DATED SEPTEMBER 1, 1958 THE STATE OP TEXAS I CITY OF LtJ:BSOCK COUNTY OF LUBBOCK ON THIS, the 14th day ofAugust, 1958, the City Com- mission or the City or Lubbock, Texas, convened in regular session at the regular meeting place thereof in the City Hall, with the following members thereof present, to-wit: LBNNIS W. BAKER, VERMON E. THOMPSOB 1 DAVID CASEY, OTIS MANER, HOMER MAXEY I MRS. LAVBNIA LOiiE, and MAYOR COMMISSIONER COMMISSIONER COMMISSIONER COMMISSIONER CITY SECRETARY also being present, and with the following absent Vernon E. Th01npson . .......__ constituting a quorum, at which time the following, among other business, was tr~acted: Commissioner tl\ 4-)(G.. i presented tor the con- sideration or the City Commission an ordinance author1z1ng.the issuance of $950,000 "CITY OF LUBBOCK, TEXAS ELECTRIC LI<:lH'f SYSTBM REVENUE REFUNDING BONDStt, dated September 1, 1958. The ordinance waa read in tull by the City Secretary. !hereupon, Commissioner ~~ moved that any rule requiring that no ordinance shall be passed on the day on which it is introduced be suspended, and that in view of the ,. emergency set forth and defined in the preamble to the proposed ordinance, the same be declared an emergency measure. This mo- YEAS' NAYS: • The motion Mayor :Baker and CODDiB&ioners ae•paors, Casey, Maner and Maxey. None. Thereupon, Comaissioner~ft\~~~~x~~~i~--------moved that the ordinance as read in fall by the City Secretary be finally passed and adopted by the Commission. This motion was seconded by Colllll1ss1oner \'y\ ~ l:\ Q...A-, and the aotion, carrying with it the final passage and adoption of the ordinance, was unanimous ly carried by the following v9te: YEAS: NAYS: Mayor Baker and Oommiaaionera ~o-.laR, Casey, Maner and Maxey. None. Thereupon, tbe Mayor announced that the ordinance bas been finally passed and adopted by unaniaoua vote ot the Com- aiaa1on in accordance with tbe requ1reaenta of Section• 15, 16 and 17 of Article IX of the Lubbock Charterj and the Mayor there- upon aigned and approved the ordinance in the presence or the Colllll1aaion. The ORDINANCE is as follows: I ttAN ORDINANCE by the City Commission of the City of Lubbock, Texas, authorizing the issuance of $950,000 'City of Lubbock, Texas, Electric Light System Revenue Refunding Bonds•, dated September l, 1958, for the purpose of refunding, cancelling and in lieu of an equal amount ot valid and sub- sisting special obligation indebtedness ot said City evidenced by bonds known as 'City of Lubbock, Texas, Electric Light System Revenue Bonds, Series 1948•, dated March l, 1948, being Bonds Numbered 791 to 1740, both inclusive, aggregating $950,000; prescribing the form of the refunding bonds and the form of interest coupons, pledging the revenues of the City's Electric Light System to the payment of the principal of and interest on the bonds, after deduction of reasonable ex- penses of operating and maintaining said system; enacting provisions incident and relating to the subject and purpose ot this ordinance; and de- claring an emergency." WHEREAS, by authority ot an election duly held in the City of Lubbock on the 2rid day of December, 1947, and other appropriate proceedings had and accomplished in such respect, the following bonds were issued and sold, to-wit: (a} "CITY <F LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS, SERIES 1948"in the original principal sum of $1,850,000 . {b) "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS, SERIES 1949"in tmoriginal principal sum of $2,300,000 {c) "CITY OF LUBBOCK, TEXAS., ELECTRIC LIGHT SYSTEM REVENUE BONDS, SERIES 1951" in the original principal sum ot $774,000. . AND WHEREAS., all the aforementioned bonds are ratably secured by a first lien on and pledge of the revenues of the City's Electria Light System., after deduetion of reasonable operation and maintenance expenses, betng ratably secured in such ~nner that no one bond shall have priority of lien over any other bond, and WHEREAS, $1,060,000 of the aforementioned Series 1948 bonds, authorized by ordinance passed February 26, 1948, are now outstanding and unpaid being more fully described as follows: \ / $1,060,000 nciTY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS, SERIES 1948", dated March 1, 1948, in denomination of $1,000 each, bearing in- terest at the rate of 3-1/4% per annum, payable semi-annually on March 1 and September l, in each year with numbers, maturities and amounts as follows: BOND NUMBERS ,(All Inclusive) 791 to 880 881 to 975 976 to 1075 1076 to 1175 1176 to 1280 1281 to 1385 1386 to 1495 1496 to 1610 1611 to 1730 MATURITY DATES March l, 1959 March 1, 1960 March l, 1961 March l, 1962 March l, 1963 March 1, 1964 March l, 1965 March 1, 1966 March 1., 1967 AMOUNTS $90,000 95,000 100,000 100,000 105,000 105,000 110,000 115,000 120,000 - March l, 1968 120,000 ~ such bonds being redeemable at the option of the City on ~ March 1, 1958, or on any interest payment date thereafter, 1731 to 1850 at par and accrued interest; both principal and interest being payable at the FIRST NATIONAL BANK IN DALLAS, Dallas, Texas. AND WHEREAS, Bonds Numbered 1741 to 1850, both in- clusive of the series above described, maturing March l, 1968, will be paid off and cancelled with available interest and sinking funds; and WHEREAS, the City Commission now considers it feasible, desirable and practicable and to the best interest of the City to isspe refunding bonds in the principal sum of $950,000 for the purpose of refunding cancelling and in lieu of Bonds Numbered 791 to 1740, both inclusive, of the aforesaid series, said refunding bonds here proposed to be issued to bear interest and to mature as hereinafter provided; and WHEREAS, it is to the bat interest of the City that it promptly cancel the outstanding bonds hereinabove described by the issuance and delivery of the refunding bonds authorized by this ordinance, at the earliest possible date, thereby creating this an emergency measure for the immediate preservation ot the public peace, property, health and safety, as well as a more efficient administration and operation of said systems and of the municipal government; therefore BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LUBBOCK: SECTION 1: Authorization -Principal Amount -Deaig- nation. That the Bonds of the City of Lubbock, Texas, be and same are hereby ordered to be i.ssued i.n the principal amount ot NINE HUNDRED FIFTY THOUSAND DOLLARS ($950,000), to be known as uCifi OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE RBFURD:. IRG BONDS", tor the puapose ot refunding, cancelling and in lieu ot a like amount of valid and subsisting special obligatians of ~d City, known as "City of Lubbock, Texas, Electric Light Syatem Revenue Bonds, Series 1948", numbered consecutively trom 791 to 1740, both inclusive, in denomi.nation ot $1,000 eaoh, aggregating $950,000, under and in st~1ct oonfor.m1ty with the Constitution and laws of the State of Texas, particularly Arti- cles 1111 to 1118, both inclusive, Revised Civil Statutes ot Texas, 1925, and Chapter 163, Acts of the Forty Second Legis- lature or Texas, Regular Session, 1931, as amended; such refunding bonds being payable as to both principal and int•rest solely from and secured by a first lien on and pledge of the revenues of the City's Electric L1gbt System, atter deduction ot reasonable expenses of operation and maintenance expenses, as said expenses are defined by statute. SECTION 2: Date -Numbers -Maturity and Option. That said bonds shall be dated September 1, 1958, shall be numbered consecutively from One (1) to Nine Hundred Fifty {950), both inclusive; shall be in denomination ot One Thousand Dollars ($1,000) each, aggregating the sum of $950,000; shall bear interest as hereinafter set forth; and shall become due and payable aerially in accordance with the following schedule: BOND NUMBERS {All Inclusive) 1 to 90 91 to 125 186 to 285 286 to 385 386 to 490 491 to 595 596 to 705 706 to 820 821 to 940 941 to 950 MATURITY DATES September 1, 1959 September l, 1960 September 1, 1961 September 1, 1962 September 1, 1963 September 1, 1964 September 1, 1965 September 1, 1966 September 1, 1967 September 1, 1968 AM0UNTS $90,000 95,000 100,000 100,000 105,000 105,000 110,000 115,000 120,000 10,000 PROVIDED, HOWEVER, that the City reserves the right to redeem all the bonds or this Series on March l, 1959 or on any inter- eat payment date thereafter, and in the redemption ot said bonds in accordance with the terms thereof, the City shall, in addi- tion to accrued interest to the date fixed tor redemption, be obligated to pay the redemption values established as follows, to-wit: par plus 3/4 of 1~ of the principal amount thereof tor al~ bonds called tor redemit1on on March 1, 1959 or on September 1, 1959; par plus 1/2 ot 1~-of the principal amount thereof tor all bonds called tor redemption on March 1, 1960 or on September 1, 1960; and par plua l/4 of 1~ of the principal amount thereof tor all bonds called tor redemption on March 1, 1961 or on any interest payment date thereafter; PROVIDED, FURTHER, that if less than all of said bonds are redeemed on any such redemption dates, same shall be redeemed in inverse numerical order; and PROVIDED, FURTHER, that at least thirty (30) days prior to any interest payment date upon which any of said bonds are to be redeemed, notice of redemption, signed by the City Secretary (specifying the serial numbers and amount of bonds to be redeemed) shall have been filed with the MERCANTILE NATIONAL BAHK AT DALLAS, Dallas, Texas, {the paying agent named in each of said bonds), and should any bond or bonds not be presented for redemption pursuant to ·such notice, the same shall cease to bear interest from and after the date so fixed tor re- demption. SECTION 3: Interest. That said bonds shall bear interest from date until paid at the following rates per annum, that is to say-- (a) Bonds Numbered l to 595, both inclusive, maturing on September lst in each ot the years 1959 to 1964, both inclusive, shall bear interest at the rate of TWO AND ONE- HALF PER CENTUM (2-l/2~) per annum; and (b) Bonds Numbered 596 to 950, both ·inclusive, maturing on September lst ·in each a~ the years 1965 to 1968, both inclusive, shall bear interest at the ·rate of 'l'WO AND THREE-FOlJM'B.S;:':!ER CENTUM (2-3/4~) per annwn, such interest to be evidenced by proper coupons attached to each ot said bonds, and sa14 interest shall be payable on Mareh l, 1959 . and semi-annually thereafter on September l and March l in each year. SECTION 4: Place of Payment. That beth principal and interest ot this issue b~ bonds shall be payable in lawful money of the United States ot America~ without exchange or collection charges to the owner or holder, at the MERCANTILE NATIONAL BANK AT DALLAS, Dallas, Texas, upon presentation and surrender ot bonds or proper coupons. SECTION 5: Execution of Bonds and Coupons. That the corporate seal of the ~CITY OF LUBBOCK, TEXAS" shall be . . imprinted upon each ot said bonds and said bonds and the interest coupons appurtenant thereto may be executed by the ipprinted tao- simile signatures or the Mayor and City Secretary ot the City, and execution in suob manner shall have the same effect as it such bonds and coupons had beenaigned by the Mayor and City Secretary by their manual signatures. Inasmuch as such bonds are required to be registered by the Comptroller ot Public Accounts ot the State ot Texas, only his signature (or that ot a deputy designated in writing to aet for the Coaptroller) shall be required to be manually subscribed to such bonds in connection with his registration certificate to appear thereon as herein- after provided; all in accordance with the provisions ot Article 717J Vernon's Civil Statutes of Texas, as amended. SECTIOR 6; Fol'll ot Bonds. substantially the following .tor.m: The bonds shall be in NO. ----UNITED S~ATBS OF ARERICA STATE OF TEXAS COUNTY OF LUBBOCK $1,000 CI'l'Y OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTBIII REVENUE REFUNDING BOND FOR VALUE RECEIVED, the City ot Lubbock, a municipal corporation ot the State ot Texas, hereby acknowledges 1taelt indebted to and promises to pay to bearer, as hereinafter stated, on the FIRST DAY OF SEPTEMBER, 19 , the sum ot - ONE THOUSAND DOLLARS ($1,000), in lawful money ot the United States ot America, without exchange or collection charges to the owner or holder, with interest thereon from the date hereof, at the rate of --------PER CENTUM <----~) per annum, ·payable on March l, 1959, and semi-annually thereafter on September 1, and March l in each year, and interest falling due on or prior to maturity hereof is payable only upon presentation of the ' interest coupons hereto attached as they severally become due. BOTH PRINCIPAL and interest ot this bond are hereby made payable at the MERCANTILB NATIONAL BANK AT DALLAS, TEXAS, and the said City of Lubbock, Texas, is hereby held and tir.mly bond to apply the pledged appropriated revenues or ita Electric .~ Light System to the prompt payment or principal and interest of this bond at maturity, and to pay said principal and interest as they mature. THIS BOND is one ot a series ot bonds or like tenor and effect, except as to number, interest rate and maturity, aggregating NINE· HUNDRED FI~ THOUSAND DOLLARS ($950,000), !'.' numbered consecutively from One (l) to Nine Hundred Fifty (950), both inclusive, in denomination or One Thousand Dollars ($1,000) each, issued tor the purpose of refund~, cancelling and in lieu or a like amount or valid and subsisting special obligations or the Ci~y known as ncity ot Lubbock, Texas, Electric Light System Revenue BGnda, Series 1948", dated March l, 1948, being Bonds Numbered 791 to 1740, both inclusive, aggregating $950,000, in accordance with the Constitution ana laws of the State of Texas 1 particularly Articles 1111 tolll8, both inclusive, Revised Civil Statutes of Texas, 1925, and Chapter 1631 Acts of the Forty Second Legislature Qf Texas, Regular Session, 1931, as amended, and pursuant to an ordinance passed by the City Commission of the City of Lubbock1 Texas, and duly recorded in the Minutes or said City Commission. AS SPECIFIED by the ordinance hereinabove mentioned, the City reserves the right to redeem all the bonds of this series, in whole or in part on March 1, 19591 or on any interest payment date thereafter, and in the redemption or said bonds in accordance with the terms thereof, the City shall, in addition to accrued interest to the date fiXed for redemption1 be obliga- ted to pay the redemption values established as follows, to-wit: par plus 3/4 of l~ of the principal amount thereof for all bonds called for redemption on March 1, 1959 or on September 1, 1959; par plus l/2 ot l~ of the principal amount thereof for all bonds called for redemption on Karch 1, 1960 or on September 1, 1960; and par plus 1/4 of 1~ or the principal amount thereof for all bonds called tor redemption on March 11 1961 or on any interest payment date thereafter; PROVIDED, HOWEVER, that if less than all of said bonds are redeemed on any such redemption dates, same shall be redeemed in inverse numerical order; and PROVIDED1 FURTHER, tbat at least thirty (30) days prior to any interest payaent date upon which any of said bonds are to be . redeeaed, notice of redemption# signed by the City Secretary {specifying the serial numbers and amounts of bonds to be re- deemed) shall have been filed with the MERCANTILE NATIONAL BANK AT DALLAS, Dallas, Texas, and should any bond or bonds not be presented tor redeaption pursuant to such notice, the same shall cease to bear interest tram and after the date so fixed tor redeaption. The DATE OF THIS BOND in conformity with the ordinance above mentioned is September 1, 1958. IN ADDITION to all other rights, the holder or holders ot this series of bonds and or this bond, is and are subrogated to all the rights and bas and have all of the remedies or the holders of the original bonds refunded by this issue of bonds, except only to the extent otherwise specifically provided in the proceedings relating to the issuance· of this series or bonds. '!'HIS BOND and the series of which it is a part, constitute special obligations of the City of Lubbock, and to~ gether with all other outstanding bonds or the total voted • authorization or $4,924,000 heretofore issued and sold, are payable as to both principal and interest from and equally secured by an exclusive first lien on and pledge of the revenues of the City's Electric Light Systea, after deduction of reasonable opera- tion and maintenance expenses. EACH HOLDER or 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 or the interest ooupons attached, may be negotiated by delive~y however possession may have been ac- quired, and that any subaequent.mlder who may receive this bond or any or the interest coupons attached for value without notice has thereby acquired absolute title free from all eq~ies and cla a ot ownership of any prior holder. The City of Lubbock, its offi- cers and the paying agent shall not be affected by any notice to the contrary. THE HOLDER hereof shall never have the right to demand payment ot this obligation out ot any funds raised, or to be raised by taxation. AND IT IS HEREBY CERTIFIED AND RECITED that the 1ssu- anoe .. of this bond 1 and the series of which 1 t is a part, is duly authorized by law; that all acts, conditions and things required to exist and to be done precedent to and in the issuance of this bond, to render the same lawful and valid, have been properly done, have happened and been p~rfor.med in regular and due time, tor.m and manner as required by the Constitution and laws of the State of Texas, and the ordinance hereinabove mentioned, and that this series of revenue bonds does not exceed any consti- tutional or statutory limitations; and that provision has been made tor the payment oc the principal of and interest on this bond and the series of which it is a part, by irrevocably pledging the revenues Gt the said Electric Light System ot said City of Lubbock. IN TESTIMONY WHEREOF, the City Commission of the City of Lubbock, Texas, has caused the seal of said City to be impressed hereen and this bond and its appurtenant coupons to . be executed with the imprinted facsimile signatures of the Mayor and Cit~ Secretary of said City in accordance with the provisions of Article 717j, Vernon's Civil Statutes of Texas, as amended~ as or the First day ot September, 1958. COUNTERSIGNED: Rayor, city or tuS6ock,Texas City Secretary, city ot Lu66ock, Texas. - SECTION 7: Coupon For.m. The form of interest coupons attached to each of said refunding bonds shall be substantially as follows : NO. ___ _ ON THB DAY OF -19 ----' unless the bond to which this coupon pertains baa been properly called for redemption in accordance with ita terms, the City or Lubbock, a municipal corporation of the State of Texas, hereby promises to pay to 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 taxation) and in lawful money or the united States of America, without exchange or collec- tion charged to the owner or holder, at the MERCANTILE NATIONAL BANK AT DALLAS, Dallas, Texas~ the sum of ---------------DOLLARS ($ __________ ), said sum being ________ months' interest due that day on "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEN RKVEN REFURDIRG BOND" 1 dated September 1, 1958. Bond Ho. __ _ city Secretary Mayor SECTION 8: For.m ot Comptroller's Certificate. Sub- stantially the following shall be printed on the back of each refunding bond: OFFICE OF CO"PTROLLER STATE OF TEXAS I REGISTER NO:i.·----- !'HEREBY CERTIFY that there is on tile and of record in my office a certificate of the Attorney General of the State ot Texas, to the effect that this bond has been examined by him as required by law, and that he finds that it has been issued in confor.mity with the Constitution and laws of the State of ,_ Texas, and that it is a valid and binding special obligation ot the City of Lubbock, Texas, payable from the revenues pledged to its payment by and in the ordinance authorizing aame, and said bond has this day been registered by me. WITNESS MY HAND AND SEAL OF OFFICE, at Austin, Texas# -------· comptroller or PUblic Accounts of the State of Texas. SECTION 9: Requirement Schedule: The following is a sehedule of' principal and interest requirements, showing also the total annual requi~ements of said "CITY OF LUBBOCJ, TEXAS, ELECTRIC LIGH'i' SYSTEM REVENUE REFUNDING BONDS" : that ill to say-- YEAR ENDING TOTAL ANNUAL SEPTEMBER 1 PRINCIPAL IN'!' BREST R!QUIRBNBRTS 1959 $90,000 $24,637.50 $114,637.50 1960 95,000 22,387.50 $117,387.50 1961 100,000 20,012.50 120,012.50 1962 100,000 17,512.50 117,512.50 1963 105,000 15,012.50 120,012.50 1964 105,000 12,387.50 117,387.50 1965 110,000 9,762.50 119,762.50 1966 115,000 6,737.50 121,737.50 1967 120,000 3,575.QO 123,575.00 1968 10,000 275.00 10,275.00 No mistake 1n the foregoing calculations mall 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 in all respects to meet the requirements the~eor. ' SECTION 10: Creating Special Fund -Use of Surplus. The City of Lubbock covenants and reaffirms, that as received, all operating income and revenues of its Electric Light System shall be first deposited in an account designated the "Electric Light System Fund", kept separate and apart from all other funds or accounts, and further that said "Electric Light System Fund" shall be pledged and appropriated to the following uses and in the order ot precedence shown: First: To the payment of all necessary and reasonable expenses of operation ~and maintenance of the Electric Light System as said expenses are defined by statute. SECOND: To the nspecial Electric Light System Revenue Bond Fund" heretofore created, and hereby reaffirmed, for the payment of principal and interest of the "CITY OF LUBBOCK, TEXAS, ELECTRIC LIQH'l' SYS'l'EM REVENUE BONDS, SERIES 1949," authorized by ordinance passed April 28, 1949 and nCI'l'Y OF LUBBOCK, TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS, SERIES 1951n, authorized by ordinance passed December 28, 1950, equally with the bonds herein authorized to refund tm aforementioned "CITY OF LUBBOCK, TEXAS, ELEC- TRIC LIGHT SYSTEM REVENUE BONDS, SERIES 1948", when and as the same tall due or mature, and to be used for no other purpose. THIRD: To ~ny other proper city purpose now or here- after permitted by law. The following provisions shall govern the creation and maintenance of the aforesaid "SPECIAL ELECTRIC LIGHT SYSTEM REVENUE BOND FUNDn: The entire net income and revenues ot the Electric Light System remaining atter operating and maintenance expenses are deducted have been heretofore and are hereby reattir.med to be irrevocably pledged to the said "SPECIAL ELECTRIC LIGHT SYSTEM REVENUE BOND FUND" in amounts sufficient to produce the total --..---. annual principal and interest requirements or the revenue bonds herein and heretofore authorized aa such total requirements are shown in the schedules relating thereto~ as set out in Section 10 of the aforesaid ordinance of April 28, 1949, in Section 10 of the aforesaid ordinance of December 281 1950~ and in Section 9 of this ordinance; and~ IR ADDITION, said Special Fund shall contain a reserve~ and to establish such reserve~ shall be sup- plemented each year by an amount equal to not less than 2~ or the average total annual requirements as above indicated, said Special Fund to be continuously supplemented by said additional amounts until aueh time as said Special Fund is equal in amount to the sum required to tully meet and discharge the principal and interest installments falling due on or before the next succeeding principal maturity date plus a sum equal to the aver- age total annual requirements tor one full year in advance. It is hereby declared to be the City's purpose and intent, and said City so covenants, that the amount to be maintained in said Special Fund shall be continuously in excess or any particular current year's requirements by an amount equal to the average total annual requirements of said bonds, for one full yearJ as a reserve tor use in meeting the requirements of the bonds here- tofore and herein authorized, if need be, and that this arrange- ment shall continue and said Special Fund shall be continuously suppelemented 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 FundJ plus said re- serve, shall contain amounts equal to the total principal and interest requirements of the revenue bonds then outstanding at their final maturity. \ . · The City Treasurer is authorized and directed to cal- culate the amounts required annually for the Series 1949, the Series 1951 and the Refunding Bonds, Series 1958, herein autho- J rized (including said reserve) and to withdraw said amounts thus determined from the af"orementioned "Electric Light System Fund" and shall deposit them in the nspeoial Electric Light System Revenue Bond Fund" in equal monthly installments on or before the 15th day of each month with the paying agent banks presoribed with relation to eaoh series of bonds. The Mercantile National Bank at Dallas, Dallas, Texas, the paying agent named herein and in the Refunding Bonds, Series 1958, and interest coupons pertaining thereto, herein authorized, is hereby desig- nated~s the custodian of said "Electric Light System Revenue Bond Fund" for such bonds and the deposits above prescribed therefor shall be transmitted to said fund with said bank. The City Treasurer is further authorized and directed to transfer forthwith all funds pertaining to the "City of Lubbock, Texas, Eleotric Light System Revenue Bonds, Series 1948, except the amount necessary to pay the principal and interest on bonds Nambered 1741 to 1850, both inclusive of said series, which are to be paid off and cancelled, to the paying agent bank herein designated tor the bonds herein authorized, to be deposited also in the "Speaial Bond Fund" above provided re¥.ting to said bonds • In the event that the income and revenues of the City's Electric Light System are insufficient in any montb to permit the required deposits into the Special Fund 1n full accord with the provisions hereof, then the amount or any deficiency shall be added to the amount otherwise required to be deposited in said fund in the next aonthJ until all deficiencies are rectified. Any tunds remaining on hand as the proceeds ot the operating income and revenues or the City's Electric Light System after first making full provisions for the purposes and fUnds referred to in the foregoing paragraphs may be used by the City for any PUrPOSe which mayn now or hereafter be permitted by law. SECTION 11: Definition of System. For all purposes of this ordinance and in particular with respect to the pledge and appropriation of revenues herein prescribed, the "ELECTRIC LIGH! SYSTEMR of the City of Lubbock, Texas shall be construed to mean all properties, real, personal, mixed or otherwise, now owned or hereafter acquired by the City ot LubbockJ through purchase, construction, or otherwise, and used in connection with said Electric tight System and in any wise appertaining thereto whether situated within or without the limits of said City. SECTION 12: The City of Lubbock further covenants, reaffir.ma and agrees that, so long as any of the revenue bonds authorized by the ordinance of April 28, 1949, the ordinance of December 28, l950J and by this ordinance~ remain outstanding and unpaid, it shall fix and maintain rates and collect charges for the facilities and services afforded by its Electric Light System which will produce income and revenues sufficient at all tiaes to: (1) Pay all operation1 ma1ntenaDce 1 deprec1ation1 replacement and betterment charges and expenses of said System; and (2) Establish and tully maintain the above pre- scribed "SPECIAL ELECTRIC LIGHT SYSTEM REVENUE BOND FUNDu. SECTION 13: Further Covenants. The City further covenants, reaffirms and agrees by and through this ordinance as follows: (a) That the revenue bonds authorized hereunder and QY the ordinances of April 28, 1949 and December 28, 19501 shall be special obligations of the City, and the holder thereof shall never have the right to demand payment out ot any funds raised, or to be raised by taxation; (b) Tbat it has the lawful power to pledge the revenues supporting this issue of bonds and the bonds authorized under the aforesaid ordinances or April 28, 1949 and Deceaber 26, 1950, and bas lawfully exercised said power under the Con- stitution and laws of the state of Texas, including power exist- ing under Articles 1111 to 1118, both inclusive, 1925 Revised Civil Statutes of the State ot Texas, with amendments thereto, and by authority of a vote of the qualified electors of said City, voting at an election held on the 2nd day of December, 1947; that the bonds issued hereunder and by the ordinances of April 28, 1949 and December 28, 19501 shall be ratably secured under said pledge ot income, in such m4nner that one bond shall have qo preference over any other bond of said issues; and (c) That, other than ~or the payment of the bonds hereby and heretofore issued, the rents1 revenues and income of said Electric Light System have not been in any manner pledged to the payment of any debt or obligation of the City and/or said System; and that said Electric Light System is tree and clear of all encumbrances whatsoever. SECTION 14: Maintenanee and Operation. That the City of Lubbock hereby agrees and reattir.as, for the benefit of the holders of the bonds, to lcarry insurance on the Electric Light System ot the kinds and in the amounts which are usually carried by private companies operating similar properties. All moneys received tor losses under such insurance policies, other than public liability policies, are hereby pledged by the City ot Lubbock as security for the bonds until and unless the pro- ceeds are paid out in making good the loss or damage in respect or which such proceeds are received, either by repairing the property damaged or replacing the property destroyed, and ade- quate provision tor making good such loss and damage made within ninety days from the date or the loss. The payment of premiums for all insurance policies required under the provisions of this Section shall be considered to be maintenance and operating expenses. C. SECTION 15: Records and Aceounts-Designation of Fiscal I Year. The City Co~ssion hereby reaffirms and tor the purposes hereof readopts its directions to the Mayor and City Secretary, as coDtained in the aforesaid ordinances of April 28, 1949 and December 28, 1950, to do any and all things necessary in reference to the installing and maintaining of a complete system ot records and accounts pertaining to said Electric Light Systea, and to make the moneys available for the payment of said revenue bonds in the manner provided by Article 1113, Revised Civil Statutes of 1925, as amended by Chapter 139, Acts ot the Regular . Session of the Forty-eighth Legislature; the fiscal year tor the operation of such system shall be October 1st to September 30th or each year and the holder or holders of twenty-five per centum (25~) in aggregate principal amount ot '-" said bonds then outstanding# or any duly authorized agent or agents of such holders, shall have the right at all reasonable times to inspect all records, accounts and data relating thereto and to inspect the system and all properties comprising the-System. The City ot Lubbock, further agrees and reaffir.ms that it will within sixty days following the close of eaoh fiscal year cause an audit of such books and accounts to be made by an independent fir.m of certified public accountants, showing tbe reeeipa and disbursements for aco~unt of the System# and that such audit will be available t9r inspection by the holders of any of the bonds. Each such audit, in addition to whatever matters may be thought proper by the accountant tG be included therein, shall include the following: 1. A statement in detail of the income and expenditures or the System for such fiscal year. 2. A balance sheet as of the end of such fiscal year. 3. The accou~tant's comment regarding the manner in which the City has carried out the requirements of tais ordinance, and the accountant's recommendation for any change or improvement in the operation or the System. 4. A list of the insurance policies in force at the end of the fiscal year, setting out as to each policy the amount or the policy, the risks covered, the name of the insurer and the expiration of the policy. 5. The number of properties connected with the Electric Light System at the end ot the year, the number ot aetered electric customers at the end of the year, and the number of unmetered electric customers at the end Qf the year. '"'""'··· ,_ J All expenses incurred in the making of the audita required by thia Section shall be regarded and paid as a main- tenance and operation expense. The City of Lubbock further reaffirms its agreement to ~urniah a copy of each such audit to the holder of any of the bonds at his request after the close of each fiscal year, and that any such holder shall have the rigbt to discuss with the accountant making the audit the contents of the. audit and to aak tor such additional information as he may reasonably require. SECTION 16: Making Rates and Collecting Charges. That the City of Lubbock further covenants and agrees and reaffi with the holder or holders ot said bonds from time to time, or an of them, that it will maintain and operate the System with all possible efficiency while any of the bonds remain outstanding and unpaid and that it will faithfully and punctually perto~ all duties with reference to the System required by the Con- stitution and laws of the State of Texas, including the making and collecting of reasonable and sufficient rates for electric light service supplied by the System, and segregating and appli- cation of the revenues of the System as required by the provi- sions of this ordinance and the ordinances of April 28, 1949 and December 26, 1950. The City covenants and agrees and reaffi that no free services shall be rendered by the System to any eustoaera, including the City and its various departments, that all electric light services used by th~ City and its various departments will be paid for at the same rates charged other consumers. SECTION 17. Sale, Lease or other Encumbrance or System The City of Lubbock hereby irrevocably covenants, reaff1r.ms, binds and obligates itself not to mortgage or otherwise encumber the System or any part thereof or to sell, lease or in any manner ' -· dispose ot the System or any part thereof, including any and all extensions and additions that aay be made thereto, until the bonds herein and heretofore authorized to be issued have been paid ~full as to both principal and interest; provided that this covenant shall not be construed to prevent the dis- posal of property whieh in the City's judgment has became in- expedient to use in connection with the System, when other pro- perty of equal value is substituted therefor. SECTION 18: Issuance ot Junior Lien and Refunding Bonda. ~he City of Lubbock Further covenants, reaff1r.ms and agrees that while any ot the bQnds of the sa14 total principal amount of $4,924,000 voted at the said election or December 2, 1947, are outstanding and unpaid it will issue no other bonds or obligations of any kind or nature payable from or enjoying a lien on the City's Electric Light System or the revenues thereof on a parity with or having priority over said bonds, it being expressly understood and agreed that any further obligations payable from the revenues ot said System or any part thereof shall be junior and subordinate ~ in all respects. The provisions of this section shall be subJect only to the following exceptions; that if, prior to the pa~ent and discharge of all outstanding bonds of the voted principal amount of $4,924,000 of bonds heretofore and herein authorized to be issued, it shall be found desirable to refund said bonds under the provisiomof any law then available, said bonds or any part thereof may be refunded with the consent of the holders thereof (except as to bonds ~ch are redeemable and have been duly called for redemption# in which case such consent shall not be necessary) and the refunding bonds so issued shall enjoy .• complete equality ot lien with the portion of said bonds which is not refunded, if any there be, and such refunding bonds shall continue to enjoy the same priority of lien over any other bonds or obligations of the Electric Light System as were enjoyed by the bonds refunded; PROVIDED, HOWEVER, that if only a portion of the bonds outstanding is refunded and if such bonds are re- funded in such manner that the interest rate of the refunding bonds 11 increased or that any of the refunding bonds mature at a date earlier than the maturity dates of the bonds refunded and earlier than the matu~ity date of any of the bonds not refunded, then such bonds may not be refunded without the con- sent of the holders ot the unrefunded portion of the bonds then outstanding of the authorized voted amount of $4,924,000. SECTION 19: Competition. That so tar as it legally may, the City of Lubbock covenants, reattir.ms and agrees tor the protection and security of the bonds herein authorized and authorized by the ordinances of April 28, 1949 and December 28, 1950, and the holders thereof from time to time, that it will not grant any franchise for the establishment of any additional competing Electric Light System in the City ot Lubbock until all bonds issued pursuant thereto shall have been retired. SECTION 20: Ordinance to Constitute Contract. That the provisions ot this ordinance shall constitute a contract between the City of Lubbock and the holder or holders from time to time or the bonds herein authorizea to be issued, and after the i,auanoe of any or said bonds, no change, variation or al- teration or any kind or the provisions or this ordinance may be made, unless as herein otherwise provided, until all ot the bonds issued hereunder have been paid as to both principal and interest. . \ SECTION 21: Exchange and Registration of Bonds. The refunding bonds herein authorized shall be exchanged for the above described outstanding revenue bonds dated March 1, 1948~ par for par, and the Comptroller of Public Accounts shall regis- ter any of the bonds herein authorized when the bonds being re- funded thereby have been delivered to him for cancellation. SECTION 22: Mayor to Have Charge of Records and Bonds. The Mayor of said City shall be and he is hereby authorized to take and have charge of all necessary orders and recorda pend- ing investigation by the Attorney General Gt 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 23: Transfer of Funds and Subrogation or Rights. As provided in Section 10 hereof, there is hereby ordered transferred to the Special Bond Fund of the refunding bonds herein authorized all sums heretofore appropriated and set aside for the payment of the bonds being refunded hereby, and the same shall forthwith be deposited in the Special Bond Fund established for the payment of said refunding bonds. In addi- tion to all other rights~ the holder or holders ot this series ot bonds~ is and are subrogated to all the rights and has and have all of the remedies of the holders of the original bonds refunded by this issue of bonds, except only to the extent other- wise specifically provided in the proceedings relating to the issuance ot this series ot bonds. _j ---I SECTION 24: Emergency. The tact that it is to the best interest or the City to promptly cancel the outstanding bonds hereinabove described by the issuance and delivery or the refunding bonds authorized by this ordinance , at the earliest possible date, creates this an emergency measure tor the ~ediate preservattn or the public peace, property, health, and safety, as well aa a more efficient administration and operation or the City's Eleetrie Light System, demanding that the Charter provision to the ettect 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 ot the City Co~ssion, and the same shall take ettect from and after its passage, and it is so ordained. PASSED AND APPROVED, this the 14th day of August, 1958. (City Seal) REPASSED by the City Conmission of the City of Lubbock, Texas, in Recessed Regular Session August 21, 1958. ~~~ ATTEST: ck, Texas ·~ity Seal)