HomeMy WebLinkAboutOrdinance - 4324-1964 - Issuance Of Revenue Bond $4,500,000.00 Texas Electric Light & Power System Rev. - 02/27/1964... / . .
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ORDDiANCE NO. /1 J 2 ¥
uAN ORDINANCE authorizing the issuance of tCity of
LubbockJ Texas, Electric Light and Power System
Revenue Bonds, Series 1964• in the principal
amount of FOUR MILLION FIVE HUNDRED THOUSAND
DOLLARS ($4,500,000) for the purpose of construct-
1ng.1mprovements and extensions to the City1 s
Electric Light System and including the purchase
of necessary sites therefor; prescribing the form
of the bonds and the interest coupons appurtenant
thereto; pledging the net revenues of the City's
Electric Light and Power System to the payment of
said bonds and the ~nterest thereon; providing for
the subsequent issuance of bonds on a parity ,
with those herein authorized; providing certain
covenants pertaining to the bonds herein
authorized and the funds from which same are
to be paid; enacting and ordaining sundry
provisio.ns incident and relating to the subject
and purpose of this ordinance; and declaring an
emergency.n
WHEREAS, pursuant to elections heretofore duly and
legally cailed and held for the purpose the City Council of
the City of Lubbock became authorized and empowered to issue spe-
cial obligation bonds of the City payable from and ratably secure
by a first lien on and pledge of the net revenues of the City1s
Electric Light and Power System, said bous having been refunded
into a si~e aeries of bonds identified as follows:
and
"CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND
. FOWER SYSTEM REVENUE REFUNDING BONDS# SERIES
19€?3", dated October 15, 1963, in the original
principal amount of $1,666,000 ..
WHEREAS, at an election held on the 17th day of
September, 1963 in the City of Lubbock, Texas, more than a
majority of the duly qualified resident electors of said City
who owned taxable property within said City and who had duly
rendered the same for taxation, who participated in the election,
voted in favor of the issuance of $7,500,000 revenue bonds for
the purpose of constructing improvements and extensions to the
City's Electric Light System and including the purchase of
necessary sites therefor; and
WHEREAS., it was provided in the ordinance authorizing
the Series .196? bonds, passed and adopted on October 3, 1963
and amended by ordinance passed and adopted on October 10, 1963,
that the City reserved the right to issue additional bonds on
a parity with the bonds authorized as aforesaid., payable from and
ratably secured by a first lien on and pledge of the net revenues
of the City's Electric Light and Power System, but only pursuant
to and subject to the restrictions, covenants and limitations
contained in the ordinance, as amended, authorizing said bonds
and
WHEREAS., the City Council finds and determines:
(1) That the Mayor and City Treasurer have certified that the
City is not in default as to any covenant., condition or obliga-
tion prescribed by the ordinance authorizing the issuance of
the outstanding bonds, including showings that all interest,
sinking and reserve funds provided for have been fully maintained
in accordance with the provisions of said ordinance. (2) That
the City has secured from an independent certified public
accountant his written report demonstrating that the net revenues
of the System were, during the last completed fiscal year, or
during any consecutive twelve (12) month period of the last
fifteen (15) consecutive months prior to the month of adoption
of the ordinance authorizing the additional parity bonda,equal
to at least one and one-half (1-1/2) times the average annual
principal and interest requirements of all the bonds which will
be secured by a first lien on and pledge of the net revenues of
~ System and which will be outstanding upon the issuance of the
additional parity bonds; and further demonstrating that for the
same period as is employed in arriving at the aforementioned
test said net revenues were equal to at least one and one-fifth
(1-1/5) times the maximum annual principal and interest require-
ments of all such bonds as will be outstanding upon the issuance
of the additional parity bonds; and
WHEREAS, it has been determined that $4,5001 000 or
the bonds voted at the election held on September 171 1963
should be issued1 the then remaining balance of the authoriza-
tion to-wit: $3,000,000 to be issued in one or more series at
a future date or dates when in the judgment of the City Council
of said City the amount thereof is needed by the City for the
purpose for which authorized; and
WHEREAS, the City Council has found and hereby
declares that there is an urgent public necessity that it proceed
with the issuance or such revenue bonds for the purpose or
providing funds for constructing improvements and extensions to
the City's Electric Light System and including the purchase of
necessary sites therefor, at the e~11est possible date and that
therefore this Ordinance constitutes an emergency measure for the
immediate preservation or the public peace, property# health,
safety, good government, order and security of the City and its
inhabitants; therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OP
LUBBOCK:
SECTION 1: Authorization -Principal Amount -
Designation. That in order to borrow the sum of FOUR MILLION
FIVE HUNDRED THOUSAND DOLLARS ($4,500,000) for the purpose of
constructing improvements and extensions to the City's Electric
Light System and including the purchase of necessary sites there-
for, the City Council of the City of Lubbock, Texas, by virtue
of authority conferred by the laws of the State of Texas, includin
Articles 1111 to 1118, inclusive, has determined that there shall
be issued and there is hereby ordered to be issued a series or
coupon bonds in the total principal sum of FOUR MILLION FIVE
HUNDRED THOUSAND DOLLARS ( $4 1 500, 000) , to be de signa ted "CI'l'Y
OP LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM RKVENUE EONDS,
SERIES 1964 11 , dated and Maturing as set out below, and which
said series of bonds, together with the outstanding and unpaid
previously issued bonds (as herein defined) shall be payable as
to both principal and interest solely from and secured by a
first lien on and pledge of the net revenues of the City's
Electric Light and Power System, as hereinafter defined.
SECTION 2: Date -Numbers -Maturity -Option. Said
bonds shall be dated March 15, 1964; shall be numbered consecu-
tively from One {1) to Nine Hundred {900)3 both inclusive,
shall be in denomination of FIVE THOUSAND DOLLARS ($5,000) each,
aggregating the principal sum of FOUR MILLION FIVE HUNDRED
THOUSAND DOLLARS {$4,500,000), and shall become due and payable
serially, in accordance with the following schedule:
.AlVIOUNT MATURITY AMOUNT MATURITY
$150,000 April 15, 1969 $150,000 October 15, 1976
150,000 October 15, 1969 150,000 April 15, 1977
150,000 April 15, 1970 150,000 October 15, 1977
150,000 October 15, 1970 150,000 April 15, 1978
150,000 April 15, 1971 150,000 October 15, 1978
150,000 October 15, 1971 150,000 April 15, 1979
150,000 April 15, 1972 150,000 October 15, 1979
150,000 October 15, 1972 150,000 April 15, 1980
150,000 April 15, 1973 150,000 October 15, 1980
150,000 October 15, 1973 150,000 April 15, 1981
150,000 April 15, 1974 150,000 October 15, 1981
150,000 October 15, 1974 150,000 April 15, 1982
150,000 April 15, 1975 150,000 October 15, 1982
150,000 October 15, 1975 150,.000 April 15, 1983
150,000. April 15, 1976 150,000 October 15, 1983
PROVIDED, HOWEVER, the City reserves the right to redeem Bonds
maturing on October 15, 1974 and on April 15 and October 15 in
each of the years 1975 through 1983 of said series, in whole or
any part thereof, on April 15, 1974, or on any interest payment
date thereafter, at the price of par and accrued interest to the
date fixed for redemption, 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 published once in a financial
journal of general circulation, published in the City of New York,
New York and shall have been filed with the CITIZENS NATIONAL BANK,
LUbb~k,Texas, and THE FIRST NATIONAL CITY BANK OF NEW YORK~
New York City, New York {the paying agents named in each of said
bonds) and should any bond or bonds not be presented for redemption
pursuant to such notice, the same shall cease to bear interest
from and after the date so fixed for redemption.
SECTION J: Interest. Said Bonds shall bear interest
from date thereof to maturity at the following rates per annum;
that is to say--
{a) Ebnds maturing semi-annually April 15, 1969
through 1m;{ tl;lt7o , at ~-~ op ;
{b) Bonds maturing semi-annually llc&A£" /.(tt?o
through ~c~ /-' t f?...,-~ at ,2 _.S/y-'%;
{c) Bonds maturing semi-annually de<,~ /J; /fll
through d; 7'/JIIE.C. tt;' /9U: , at 3 · %;
. {d) Bonds maturing semi-annually ""tiC'"'-~ ~tt1
through Q ru,-~C. <.C d ti!J ,at d: /~ f,;
{e) Bonds maturing semi-annually &-<<L 1-' /Ntl"
,at
{f) Bonds maturing semi-annually bAJ·~ a:; nr-v
through Ocr.l!£& tC:/~lJ' ,at 3 -~ %;
such interest to be evidenced by proper coupons attached to each
ot said bonds and said interest shall be payable on October 15~
1964 and semi-annually thereafter on April 15 and October 15 in
each year.
SECTION 4: Places of Payment. Both principal of and
interest on this series of bonds shall be payable in lawful money
ot the United States or America~ Without exchange or collection
charges to the owner or holder at the CITIZENS NATIONAL BANK~
Lubbock~ Texas~ or at the option of the holder at THE FIRST
NATIONAL CITY BANK OF NEW YORK,. New York City~ New York~ upon
presentation and surrender of bonds or proper coupons.
SECTION ~: Bonds -SEecial Obli&ations. Said bonds
shall constitute special obligations of the City of Lubbock
and each of said bonds shall contain the following recitation:
"The holder hereof shall never have the right to
demand payment of this obligation out of any funds
raised or to be raised by ta:xation.11
SECTION 6: Execution of Bonds and Interest Coupons.
The oorporate seal ot the City of Lubbock may be impressed on
each or said bonds or in the alternative a facsimile or such
seal may be printed thereon. The bonds and interest coupons
appurtenant thereto may be executed by the imprinted facsimile
signatures or the Mayor and City Secretary of the City and exe-
cution in such manner shall have the same effect as it such
bonds and coupons had been signed by the Mayor and City Secretary
in person through their manual signatures. Inasmuch as such bonds
are required to be registered by the Comptroller of Public
Accounts for 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 subscribed to such bonds in connection
with his registration certificate to appear thereon, as hereinafter
provided; all in accordance with the provisions or "Texas Uni.form
Facsimile Signature or Public Officials Act" enacted by the 57th
Legislature of Texas at its Regular Session -in 1961.
SECTION 7: Form or Bonds. The form o.f said bonds
shall be substantially as follows:
NO. ___ _ UNimD STATES OF AMERICA
STATE 0 F TEXAS
COUNTY OF LUBBOCK
$5,000
CITY OF LUB:OOCK, TEUS, ElECTRIC LIGHT AND POWER SYSTEM
REVENUE BOND, SERIES 1964
The CITY OF LUBBOCK, County of Lubbock, State of Texas,
a municipal corporation duly incorporated under the laws or the
State or Texas and acting under its Home Rule Charter, FOR VALUE
RECEIVED hereby acknowledges itself indebted to and promises to
pay to the bearer hereof out o.f the revenues speci.fied in this
bond, on the FIFTEENTH DAY OF ___________ __ 19
FIVE THOUSAND DOLLARS
($5,000), in lawfUl money of the United States or America, with
interest thereon from date hereof to maturity at the rate o:f
----------:PER CENTUM ( ___ _...%) payable on October 15,
1964 and semi-annually thereafter on April 15 and October 15 in
each year, the interest falling due on or prior to maturity
hereof being payable only upon presentation and surrender or the
interest coupons hereto attached as they severally become due.
BOTH PRINCIPAL and interest o:f this bond are payable at
the CITIZENS NATIONAL BANK, Lubbock, Texas, or at the option of
the holder at THE FIRST NATIONAL CITY BANK OF NEW YORK, New York
City, New York, without exchange or collection charges to the owner
or holder and the said City o:f Lubbock, Texas, is hereby hemd and
firmly bound to apply the pledged appropriated revenues of ita Elec
tric Light and Power System to the prompt payment of interest on
this bond as it falls due and the principal thereof at maturity and
to pay the said principal and interest as they mature.
THIS BOND is one of a series of like tenor and effect,ex-
cept as to number, interest rate, right of prior redemption and ma-
turity, aggregating FOUR MILLION FIVE HUNDRED THOUSAND DOLLARS
($4,500,000), numbered sensecutiv€ly from One {1) to Nine Hundred
(900), both inclusive, in denomination of Five Thousand Dollars
($5,000) each, issued for the purpose of constructing improvements
and extensions to the City's Electric Light System and including th
purchase of necessary sites therefor, in accordance with the Consti
tution and laws of the State of Texas, including the provisions of
Articles 1111 to 1118, both inclusive, Revised Civil Statutes of
Texas, 1925, as amended, and by authority of a vote of the resident
qualified property taxpaying electors of said City, who had duly
rendered their property for taxation, voting at an election held fo
that purpose within said City on the 17th day of September, 1963,
pursuant to an ordinance passed by the City Councn of the City of
Lubbock,Texas, and duly recorded in the Minutes of said City Council.
AS SPECIFIED in the ordinance hereinabove mentioned the
City reserves the right to redeem Bonds maturing on October 15, 1974
and on April 15 and October 15 in each of the years 1975 through
1983, of this series, in whole or any part thereof on April 15,1974,
or on any interest payment date thereafter, at the price of par and
accrued interest to the date fixed for redemption; PROVIDED,HOWEVER,
that at least thirty (30) days prior to any interest payment date
upo·n which any of said bonds are to be redeemed, notice of redemptio
signed by the City Secretary (specifying the serial numbers and amou t
f bonds to be redeemed) shall have been published once in a financi 1
ournal of general circulation, published in the City of New York,
ew York, and shall have been filed with the CITIZENS NATIONAL BANK,
ubbock, Texas, and THE FIRST NATIONAL CITY BANK OF NEW YORKg New
ork City, New York, and should any bond or bonds not be presented
or redemption pursuant to such notice, the same shall cease to
ear interest from and after the date so fixed for redemption.
THE DATE of this bond in conformity with the ordinance
aforementioned is March 15~ 1964.
THIS BOND, as well as all bonds of its series~ con-
stitute special obligations of the City of Lubbock, Texas, and
together with the outstanding and unpaid previously issued
bonds (as defined in the ordinance authorizing the series of
bonds of which this is one)~ are payable as to principal and in-
terest and equally secured by a first lien on and pledge of the
revenues of the City's Electric Light and Power System after deduc-
tion of reasonable expenses of operation and maintenance.
THE CITY OF LUBBOCK expressly reserves the right to
issue further and additional revenue bond obligations, in all
things on a parity with the outstanding previously issued bonds
and the bonds of this series and payable from and equally secured
by a first lien on and pledge of the net revenues of the City's
Electric Light and Power System~ PROVIDED, HOWEVER, that any and
all such further parity bonds may be so issued only in accordance
with the covenants, conditions, limitations and restrictions
relating thereto which are set out and contained in the ordinance
authorizing this series of bonds, and to which said ordinance
reference is hereby made for full and complete particulars.
The holder hereof shall never have the right to demand
payment of this obligation out of any funds raised or to be raised
by taxation.
EACH successive holder of this bond, and each successive
holder of the 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 this bond and each of
the coupons hereto attached, may be negotiated by delivery by
any person having possession hereof, however such possession may
have been acquired, and that any bolder who shall have taken this
bond or any of the coupons from any person for value without no-
tice thereby has acquired absolute title thereto, free of all
equities and claims of ownership of any such prior holder. The
City of Lubbock and its officials and the paying agents herein-
above named shall not be affected by any notice to the contrary.
AND IT IS HEREBY CERTIFIED AND RECITED that the issuance
of this bond, and the series of which it is a part~ is duly
authorized by law; that all acts, conditions 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 have been performed in regular and due time~
form and manner, as required by the Constitution and laws of the
State of Texas, and the ordinance hereinabove mentioned; that
this series of revenue bonds does not exceed any constitutional
or statutory limitations; and that provision has been made for
the payment of the principal and interest of this bond, and the
series of which it is a part, by irrevocably pledging therefor
the net revenues of the City's Electric Light and Power System.
IN TESTIMONY WHEREOF, the City Council of the City
~ Lubbock, Texas, in accordance with the provisions of the
"Texas Uniform Facsimile Signature of Public Officials Act 11
enacted by the 57th Legislature of Texas at its regular session
in 1961, has caused the seal of said City to be impressed or a
facsimile thereof to be printed hereon, and this bond and its
appurtenant coupons to be executed with the imprinted facsimile
signatures of the Mayor and City Secretary of said City as of
the 15th day of March, 1964.
COUNTERSIGNED:
Mayor, City of Lubbock, Texas
... Apprgyecf ~~
City Secretary, city or tubbock,
Texas
SECTION 8: Form of Coupons. The form of said interest
coupons shall be substantially as follows:
NO. __ _ ON THE F'IFTEBNTH DAY OF'
19_ -
•(unless the bond to which this coupon pertains has been properly
called for redemption in accordance with its terms) the City of
Lubbock~ a municipal corporation of the State of Texas, hereby
promises to pay to bearer, the amount shown hereon out of funds
specified in the bond to which this coupon is attached, and in
lawful money of the United States of America, without exchange or
collection charges to the owner or holder, at the CITIZENS NATION
BANK~ Lubbock, Texas, or at the option of the holder at THE FIRST
NATIONAL CI'l'Y BANK OF NEW YORK, New York City~ New York, such sum
being months 1 interest due that date on "CITY OF -----
LUB:OOCK~ TEXAS~ ELECTRIC LIGHT AND POWER SYSTEM REVENUE OOND~
SERIES 1964", dated March 15, 1964. The holder hereof shall never
har~e the right to demaro payment of this obligation out of funds
raised or to be raised by taxation. Bond No. ____________ •
Secretary,Olty of Lubbock~Texas Mayor, City of Luboock,Texas
SECTION 9: Form of Comptroller's Certificate. Sub-
stantially the following shall be printed on the back of each bond
OFFICE OF' COMPTROLLER
STATE OF TEXAS I REGISTER NO. __ _
I HEREBY CERTIFY that there is on file and of record in
my office a certificate of the Attorney General of the State of
Texas, to the effect that this bond has been examined by him as
require~ by law, and that he finds that it has been issued in
conformity with the Constitution and laws of the State of Texas,
NOTE TO PRINTER: The expression in parenthesis to be included
only In ool).pons maturing October ~ 1974 and subsequent pertain-
ing to optional bonds maturing october 15, 1974 and April 15 and
October 15 in the years 1975 through 1983.
and that it is a valid and bindjng special obligation upon said
City of Lubbock, Texas, payable rrom the revenues pledged to its
payment by and in the ordinance authorizing same, and said bond
has this day been registered by me.
WITNESS MY HAND AND SEAL OF OFFICE, at Austin, Texas,
--------------------·
Comptroller of Public Accounts of the
State of Texas
SECTION 10: Definitions. For all purposes of this
ordinance and for clarity with respect to the issuance of the
bonds herein authorized and the pledge and appropriation of reve-
nues therefor, the following definitions are provided:
(1) The term uSystem" shall mean all properties,
real, personal, mixed, or otherwise, now o@ned or hereafter
acquired by the City of Lubbock through purchase, construction
or otherwise, and used in connection with the City1 s Electric
Light and Power System and in anywise appertaining thereto,
whether situated within or without the limits of the City.
(2) The term "Net Revenues" shall mean the gross
. .
revenues of the City1s Electric Light and Power System less
the expense of operation and mahtenance. Such expense of
operation and maintenance shall not include depreciation
charges or funds pledged for the bonds herein authorized,
ror the previously issued bonds and for additional parity
bonds hereafter authorized, but shall include all salaries,
labor, materials, repairs, extensions necessary to render
services, provided, however, that in determining "Net Revenues"
only such repairs and extensions as in the judgment of the
City Council, reasonably and fairly exercised are necessary
to keep the System in operation and render adequate service to
the City and inhabitants thereof, or such as might be
necessary to remedy some physical defect Which otherwise
would impair the security of the bonds authorized by this
ordinance or additional parity bonds permitted to be issued
under Section 20 hereof, shall be deducted.
(3) The term '1Bondsu whenever same appears in this
ordinance without any qualifying language, shall mean the
$4,500,000 of revenue bonds authorized by this ordinance.
(4) The expression "previously issued bonds" shall
mean the "City of Lubbock, Texas, Ineetric Light a~d Power
System Revenue Refunding Bonds, series 1963", dated
October 15, 1963, in the original principal amount of
$1,666,000;
(5) The expression "Additional Parity Bondsu shall mean
those bonds which the City reserves the right to issue under
the provisions of Section 20 hereof.
SECTION 111 Pled~e. The City of Lubbock covenants,
reaffirms and agrees that all of the net revenues of the System
hereby irrevocably pledged equally for the payment of principal an
interest of the bonds, the previously issued bonds and the
additional parity bonds if issued under the conditions and in the
manner specified in this ordinance, all of which shall constitute
a first lien on and pledge of the net revenues of the System.
SECTION 12: System Fund. All receipts, revenues and
income of every nature in any manner derived from ownership and
operation of the System shall constitute a separate and sacred
fund whi"ch in no event shall be diverted or drawn upon except
under the provisions and for the purposes herein prescribed.
All such receipts, revenues and income shall be paid over and
deposited with the City's depository within twenty four (24)
hours after collection. The account to which said Fund shall
be deposited shall be known as the Electric Light and Power System
Fund (hereinafter referred to as the "System Fundu) to be kept
separate and apart from all other city funds or accounts.
Specifically as related to the bonds herein authorized and the
previously issued bonds, the System Fund shall be and is hereby
pledged and shall be devoted and applied to the purposes enumera-
ted in Section 13 following and in the order of precedence
shown therein.
SECTION 13: Flow of System Fund. All moneys paid over
and deposited in the System Fund as provided in Section 12 above
shall be pledged, appropriated and employed as follows:
(1) For the payment of those necessary and reasonable
expenses of operating and maintaining the System as are set
forth in Paragraph 2 of Section 10 hereof relating to the
definition of uNe t Revenues 11 •
(2) To the "Special Electric Light and Power System
Revenue Eond Retirement and Reserve Fund (hereinafter referred
to as the "Eond Fund .. ) heretofore created and hereby reaffirmed
for the bonds herein authorized, the previously issued bonds
and such additional parity bonds as may hereafter be issued
under the provisions of Section 20 hereof. Said Bond Fund
shall be used for no purpose other than for the payment6
redemption and retirement of such bonds and the interest
thereon in accordance with the terms and provisions of the
ordinances authorizing their issuance. All funds received
from the purchasers of such bonds as accrued interest thereon
shall be placed in the Bond Fund. The City covenants,
reaffirms and agrees to provide the Bond Fund with all
amounts required to pay as due each of the principal and
interest installments pertaining to all bonds, previously
issued bonds and additional parity bonds and that in
addition thereto said Bond Fund shall contain a Reserve
Portion in the sum of not lese than FOUR HUNDRED FIFTEEN
THOUSAND DOLLARS ($415,000), the sum of $360,000 having
been heretofore deposited in the Reserve Portion of said Bond Fund
under the provisions of the ordinance authorizing the issuance of
the Series 1963 bonds, and the proper City Officials are hereby
authorized and directed tomke all steps necessary or convenient
to transfer the sum of $55,000, out of funds available for such
purpose, to the Reserve Portion of said Bond Fund immediately
upon sale and delivery of the bonds herein authorized. Said
Reserve Portion shall be made available for and seasonably em-
ployed in meeting the requirements of the Bond Fund if need be,
and if any amount thereof is so employed said Reserve Portion
mall be supplemented out of the first System funds available
therefor to such extent as will, as papidly as possible, fully
restore same to the sum of at least $415,000. The ordinances of
the City Council authorizing any series of additional parity
bonds shall make due provision for supplementing, if necessary,
the Reserve Portion of the Bond Fund so that same shall be accumu-
lated and maintained in an amount equal to not lese than the
average annual principal and interest requirements of all series
of bonds then to be secured by a first lien on and pledge of the
net revenues of the System and which will be outstanding upon the
issuance of any series of additional parity bonds.
SECTION 14: Method of Providing Amounts for Semi-
annual Interest and Princi~al Requirements of the Bonds. The
City Treasurer is instructed to calculate the amount of each
next succeeding installment of interest and principal of the
bonds and to withdraw the necessary amounts from the System Fund
and depo~it them in equal monthly installments in the Bond Fund.
The monthly deposits for bond requirements shall be made on the
let day of each month and shall consist of not less than one-
sixth of the next se~ annual installment of interest and
principal. In the event the income and revenues of the System are
insu~~icient in any month to permit the required deposits into the
Bond Fund in accordance with the provisions hereof or if for any
other reason the City shall fail to make the req\dred deposits
into the Bond Fund (including the reserve portion if same has
become depleted) the amount of such deficiencies shall be made up
as promptly as available System Funds will permit.
SECTION 15: Surplus Revenues. After all requirements
of Paragraphs 1 and 2 of Section 13 hereof have been satisfied
and all similar requirements of any additional parity bonds
hereafter issued and after all deficiencies existing in such
requirements have been remedied1 surplus revenues of the System
may be used for any other proper city purposes now or hereafter
permitted by General Law1 including the use thereof for retiring
in advance of maturity any such bonds or additional parity bonds
by purchase on the open market at not exceeding the market value
thereof. Nothing herein shall be construed, however, as impairing
the right of the City to pay, in accordance with the provisions
thereof, any junior lien bonds legally issued by it.
SECTION 11: Security for Electric System Bond Fund.
All funds herein pr:-ovided for the Electric System :Bond Fund
heretofore established and herein reaffirmed shall be kept separate
and apart from all other city funds and shall be continuously se-
cured by a valid pledge or direct obligations of, or obligations
unconditionally guaranteed by the United States or America, having
a par value, or market value when less than par, exclusive of
accrued interest, at all times at least equal to the amount of
money to be deposited in said fund. All sums deposited in said
:Bond Fund shall be held as a trust fund for the benefit of the
holders of the bonds herein authorized and the previously issued
bonds, the beneficial interest in which shall be regarded as
existing in such holders. Tb the extent that money in the reserve
portion or the Bond Fund is invested under the provisions of
Section 18 hereof such security is not required.
SECTION 17: Custodian of Bond Fund. The custodian of
the Bond Fund shall be the City's official depository bank, and
all deposits prescribed shall be placed in said fund with said
custodian bank. Prior to each interest and principal maturity da
tt shall be the duty of the City Treasurer to withdraw from said
fund and place with the paying agent banks money in such amounts
a will be fully sufficient to pay and at such times as will permit
prompt payment of each interest and principal installment.
SEGTION 18: Investment of Reserve Portion of Bond Fund.
The Custodian Bank shall, when authorized by the City Council
invest the reserve portion of the Bond Fund in direct obligations
of, or obligations guaranteed by the United States of America, or
invested in direct obligations of the Federal Intermediate Credit
Banke, Federal Land Banks, Federal National MOrtgage Association,
Federal Home Loan Banks or Banks for Cooperatives, and which such
investment obligations must mature or be subject to redemption at
the option of the holder, within not to exceed ten years from the
dtte of making the investment·. Such obligations shall be held by th
depository ~pressed with the same trust for the benefit of the
bondholders as the Bond Fund itself and if at any time uninvested
funds shall be insufficient to permit payment of principal and
interest maturities herein authorized as herein directed the ea~d
depository shall sell on the open market such amount of the securi
ties as is required to pay said bonds and interest when due and
~1 give notice thereof to the City Treaaarer. All moneys result-
ing from maturity of principal and interest of the securities in
which the reserve funds are invested shall be reinvested or accumu
lated in said reserve portion of saitl Bond Fund and considered a
part thereof and used for and only for the purposes hereinabove
provided with respect to said reserve.
SECTION 19: Rates and Charges. The City of Lubbock
covenants, reaffirms and agrees that so long as any of the revenue
bonds and coupons herein authorized and any of the previously
issued bonds and coupons remain outstanding and unpaid it shall
f1x and maintain rates and collect charges for the facilities and
services afforded by its Electric Light and Power System1 which
will produce income and revenues sufficient at all times to:
(a) Pay all necessary operation, maintenance and
betterment charges and expenses of the System;
(b) Establish and fully maintain the 11Bond Fund"
including the reserve portion thereof for the bonds herein
authorized, the previously issued bonds and for any additional
parity bonds hereafter issued in accordance with theprovisions
hereof;
(c) Pay the requirements of all other lawful obli-
gations and indebtedness of the System chargeable against
the System, as and when the same shall accrue and become
due.
SECTION 20: Issuance of Additional Parity Bonds.
In addition to the right to issue bonds of inferior lien as
authorized by the laws of the State of Texas, the City of Lubbock
reserves the right to issue further revenue bonds payable from the
net income and revenues of the System and when issued in compliance
with law and the terms and conditions hereinafter appearing such
additional bonds shall occupy a position of parity with and shall
be equally and ratably secured by a first lien on and pledge of
the net revenues of the System to the same extent as the series
of bonds authorized by this ordinance and the previously issued
bonds. The City hereby covenants, reaffirms and agrees that no
additional bonds or other obligations payable from the ret revenue
of its Electric Light and Power System shall be issued on a parity
with the series of bonds herein authorized and with the previously
issued bonds, unless and until the following conditions have been
met:
(a) That the Mayor and City Treasurer have certified
that the City is not then in default as to any covenant, condiUon
or obligation prescribed by this ordinance, the ordinance authoriz-
ing the issuance of the previously issued bonds, or any ordinance
authorizing the issuance of additional parity bonds then outstand-
ing, including showings that all interest, sinking and reserve
funds then provided for have been fully maintained in accordance
with the provisions of said ordinances.
(b) That the applicable laws of the State of Texas in
force at the time provide permission and authority for the issu-
ance of such bonds and have been fuJ.lu complied with;
(c) That the City has secured from an independent cer-
tified public account ant his writ ten report demonstrating that
the net revenues of the System we~ during the last completed
fiscal year, or during any consecutive twelve (12) month period of
the last fifteen (15) consecutive months prior to the month of
adoption of the ordinance authorizing the additional parity bonds,
equal to at least one and one-half (1-1/2) times the average annual
principal and interest requirements of all the bonds which will
be secured by a first lien on and pledge of the net revenues of the
System and which will be outstanding upon the issuance of the
additional parity bonds; and further demonstrating that for the
same period as is employed in arriv1 ng at the aforementioned test
said net revenues were equal to at least one and one-fifth (1-1/5)
times the maximum annual principal and interest requirements of
all such bonds as will be outstanding upon the issuance of the
additional parity bonds;
(d) That the additional parity bonds are made to
mature on April 15 or October 15, or both, in each of the years
in which they are provided to mature;
(a) As hereinabove provided the Reserve Portion of
the Bond Fund shall be accumulated and supplemented as necessary
to maintain it in a sum which shall be not less than the average
annual principal and interest requirements of all bonds secured
by a first lien on and pledge of the net revenues of the System
hich will be outstanding upon the issuance of any series of
additional parity bonds. Accordingly each ordinance authorizing
the issuance of any series of additional parity bonds shall pro-
vide for any required increase in said Reserve Portion and if
supplementation is necessary to meet all conditions of said Reserve
Fund said ordinances shall make provision that same be supplemented
by the required amounts in equal monthly installments over a period
of not to exceed sixty (60) aalendar months from the dating of such
additional parity bonds.
When thus issued such additional parity bonds may be
secured by a pledge of the revenues of the City's System on a
parity in all things with the pledge securing the issuance of the
nds herein authorized and the previously issued bonds.
SECTION 21: Maintenance and Operation. The City of
Lubbock hereby covenants, reaffirms and agrees that it will main-
tain the System facilities in good condition and operate the same
in an efficient manner and at reasonable costs so long as the
bonds, previously issued bonds or the additional parity bonds are
outstanding and unpaid. The City further agrees to maintain insuranc
for the benefit of the holder or holders qf the bonds of the kinds
and in t~ amounts which are usually carried by private companies
operating similar properties, and that during such time all poli-
cies of insurance shall be maintained in force and kept current
as to premium payments. All moneys received from losses under such
insurance policies other than public liability policies are hereby
pledged as security for the bonds until and unless the proceeds
thereof are paid out in making good the loss crdamage in respect
of which such proceeds are received, either by replacing the
property destroyed or repairing the property damaged, and adequate
provisions made within ninety (90 ) days after the date of the loss
for making good such loss or damage. The premiums for all insurance
policies required under the provisions of this section shall be
considered as maintenance and operation expenses.
SECTION 22: Records and Accounts. The City of Lubbock
hereby covenants, reaffirms and agrees that so long as any of the
bonds herein authorized or the previously issued bonds, or any
interest thereon, remain outstanding and unpaid, it will keep and
maintain a proper and complete system of books, records and
accounts pertaining to the operation of the System, separate and
apart from all other records and accounts in which complete and
correct entries shall be made of all transactions relating to the
System as provided by Article 1113, Revised Civil Statutes of
Texas, 1925, as amended, and that the holder or holders of any
of the bonds or any duly authorized agent or agents of such
holders shall have the right at all reasonable times to inspect
all such books, records, accounts and data relating thereto and
to inspect the System and all properties comprising same. The
appropriate City officials are hereby instructed and directed to
do any and all things necessary or convenient in reference to
keeping and maintaining of such books, records and accounts and
to make the moneys available for payment Df the bonds in the
manner provided by the aforementioned statute. The City further
agrees that within sixty (60) days following the close of each
~seal year it will cause an audit of its books and accounts to
be made by an independent firm of Certified : Public Accountants
showing· the receipts and disbursements for the account or the
system for the fiscal year. Each such audit shall, in addition
to whatever other matter may be thought proper by the Aceountant1
particularly include the following:
(a) A detailed statement of the income and expenditures
for account of the System for such fiscal year;
(b) A balance sheet as of the end of such fiscal year;
(c) The Accountant's comments regarding the manner
in which the City has carried out the requirements of this
ordinance, and his recommendations for any change or
improvements in the operation., records and accounts of
the System;
(d) A list of the insurance policies in force at
the end of the fiscal year on system properties, setting
out as to each policy the amount thereof, the risk covered,
the name of the insurer and the policy1s expiration date;
(e) A statement verifying that the securities herein
specified therefor have been on deposit as security for the
money in the Electric Light and Power System Bond Fund
throughout the fiscal year, and a list of the securities,
if any, in which the reserve portion of such Special Fund
have been invested;
(f) The number of metered and unmetered customers,
if any, connected with any department of the System, showing
totals at the end of the fiscal year.
Expenses incurred in making the audits above ·'eequired
are to be regarded as maintenance and operation expenses and
paid as such. Copies of the aforesaid annual audit shall be
promptly furnished the original purchasers of the bonds and any
subsequent holder at his request. At the close of the first six
months • period of the fiscal year, the City Manager is directed
to furnish a copy of an operating and income statement in reason-
able detail cove~ing such period to any bondholder upon his reques
therefor~ received not more than thirty days after the close of
said six months' period. Any bondholder shall have the right to
discuss with the Accountants making the annual audit the contents
thereof and to ask the City Manager for such additional informatio
as he may reasonably request.
SECTION 23: Remedies in Event of Default. In addition
to all the rights and remedies provided by law by the State of
Texas, the City covenants and agrees particularly that in the
event the City (a} defaults in payment of principal or interest
on any of the bonds when due, (b) tails to make the payments
into the Bond Fund as required by Section 13 of this ordinance, or
(c) defaults in the observance or performance of any other of the
covenants, conditions or obligations set forth in this ordinance,
the following remedies shall be available:
1. The holder or holders of any of the bonds shall
be entitled to a writ of mandamus issued by a court of proper
jurisdiction compelling and requiring the City Council
and other officers of the City to observe and perform any
covenants, obligations or conditions prescribed in the
bond ordinance.
2. No delay or omission to exercise any right or
power accruing upon any default shall impair any such
power or right or shall be constructed to be a waiver of
any ~uch 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 specific remedies herein provided shall be cumulativ
ot all other existing remedies and the specification of such shall
not be deemed to be exclusive.
SECTION 24% Sale, Lease or Other Encumbrance or System.
The City of Lubbock further covenants, reaffirms, binds and obli-
gates itself not to eell, lease or in any manner dispose of the
System, its properties, or any part thereof, including any and all
extensions and additions that may be made thereto, and it ack-
nowledges and accepts restraint from doing so until the bonds
herein authorized and the previously issued bonds shall have been
paid in full as to both principal and interest at maturity, or
under the provisions hereof relating to their redemption prior to
maturity, or until other arrangements have been made for continuance
of payment of principal and interest then outstanding for the full
retirement thereof; provided, however, that this covenant shall not
be construed to prevent the disposal by the City of property which
in its jdggment has become inexpedient to use in connection with
the System when other property of equal value has been substituted
therefor.
SECTION 25: Further Covenants. The City further
covenants, reaffirms and agrees by and through this ordinance as
follows:
{ 2) That it has the law.ful power to pledge the
revenues supporting this issue of bonds and has lawfully
exercised said power under the Constitution and laws of the
State of Texas, including the powers existing under
Articles 1111 to 1118, both inclusive, 1925 Revised Civil
Statutes of the State o.f Texas, with amendments thereto, and
that the bonds issued hereunder, the previously issued bonds
and any additional parity bonds issued pursuant to the pro-
visions hereof shall be ratably se~red in such manner that
no one bond of any such issues shall have preference over any
other bond of such issues.
(b) That the net revenues and income of the System
are pledged exclusively to the payment of the bonds herein
authorized~ the previously issued bonds and such additional
parity bonds as may hereafter be issued pursuant to the pro-
visions hereof; that said net revenues and income have not
been pledged in any manner to the payment of any other debt
or obligation of the City or the System and otherwise said
System is free and clear of all encumbrances whatsoever.
(c) That nothing in this ordinance shall require the
City to make any expenditure except from money in the System
Fund~ but nothing herein shall prohibit the City from doing
eo at its election.
(d) That except under the conditions of this ordinance
relating to parity bonds, the City will not suffer any
indebtedness on a parity or superior to the bonds of tHls
issue and the previously issued bonds to accrue the City or
said System and that if the System shall becom liable for
any other indebtedness, the City Council will fix and
maintain rates and collect charges for the services afforded
by the System entirely sufficient to discharge any such
indebtedness or obligation.
(e) The City will cause to be rendered monthly to
each customer receiving electric services a statement
therefor and will not accept payment of lese than all of
any statement so rendered, using its powers under existing
ordinances and under all such ordinances to become effective
in the future to enforce payment, to withold service from
such delinquent customers and to enforce and authorize
reconnection charges.
(f) The City will allow no free services from the
System and shall require payment of the reasonable value
thereof by itse~r or any of its agents or instrumentalities.
such payments to be made out of funds derived from sources
other than as revenues of the System.
(g) That the City will faithfully and punctually
perform all duties with respect to the System required
by the Constitution and laws of the State of Texas,
including the making and collecting of reasonable and
sufficient rates for services supplied by the System, and
the segregation and application of the revenues of the
System as required by the provisions of this ordinance.
SECTION 26: Ordinance to Constitute Contract. That
the provisions of this ordinance shall constitute a contract
between the City of Lubbock and the holder or holders from time
to time of the bonds herein authorized to be issued, and after the
issuance of any of said bonds, no change. variation or alteration
of any kind of the provisions of this ordinance may be made,
unless as herein otherwise provided, until all of the bonds issued
hereunder shall have been paid as to both principal and interest.
SECTION 27: 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 of all necessary records and orders pendin
investigation by the Attorney General of the State of Texas, and
shall take and have charge and control or the bonds herein
authorized pending their approval by the Attorney General and tte i
registration by the Comptroller of Public Accounts. It shall be
the duty of the Mayor (or Attorneys acting for the City) to submit
the record of said bonds and the bonds to the Attorney General of
the State of Texas for approval and thereafter to have the bonds
registered by the Comptroller of Public Accounts.
SECTION 28: Confirmation of Sale. That the sale of the
bonds herein authorized to
/-f4L s£y J Srv,.~r ~Jcl ~.,.,~..,,_
~ / #ss;~CJA 1fF$
at the price of par and accrued interest to date of delivery,
plus a premium of $ '/Jf, ()() , is hereby confirmed.
Denvery of the bonds shall be made to said purchasers as soon
as may be after the adoption of this ordinance, upon payment
~erefor in accordance with the terms of sale.
SECTION 29: Printed Legal Opinion on Bonds. The pur-
chasers• obligation to accept delivery or the bonds herein autho-
rized is subject to their being furnished a final opinion of
Messrs. Dumas, Huguenin and Boothman, Attorneys, Dellas, Texas,
approving such bonds as to their validity, said opinion to be
dated and delivered as of the date of delivery and payment for
such bonds. Printing of a true and correct copy of said opinion
on the reverse side of each of said bonds with appropriate
certificate pertaining thereto executed by facsimile signature of
the City Secretary is hereby approved and authorized.
SECTION 30: Emergency. The public importance of this
measure and the fact that it is to the best interest of the City
of Lubbock to provide funds for the construction of improvements
and extensions to the City's Electric Ljght System at the
earliest possible date for the immediate preservation of the
public peace, property, health and safety of the citizens of
said City, constitute and create an emergency and an urgent
public necessity requiring that this ordinance be passed to
take effect as an emergency measure and that this ordinance is
accordingly passed as an emergency measure and shall take
effect and be in force immediately from and after its passage,
and IT IS SO ORDAINED.
PASSED AND APPROVED. this the 27th day of February,
1964.
xas
Lubbock, Texas
(City Seal)