HomeMy WebLinkAboutOrdinance - 6683-1973 - Issuance Of $6,300,000 "City Of Lbk, Tx, General Obligation Bonds, Series 1973" - 07/12/1973I ,.
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ORDINANCE NO. 6683
AN ORDINANCE by the City Council of the City of
Lubbock, Texas, authorizing the issuance of
$6,300,000 "CITY OF LUBBOCK, TEXAS, GENERAL
OBLIGATION BONDS , SERIES 19 7 3, " dated August 1,
1973, for the purpose of making permanent public
improvements, to wit: $402,000 for constructing
improvements and extensions to the City's Water-
works System; $5,400,000 for planning, acquiring,
establishing, developing, and constructing an
airport and air navigation facilities and the
site therefor, including buildings and other
facilities incidental to the operation thereof,
and the acquisition or elimination of airport
hazards; and $498,000 to acquire or improve, or
both, land for park purposes for said City; pre-
scribing the form of the bonds and the for.m of the
interest coupons, levying a continuing direct
annual ad valorem tax on all taxable property
within the limits of said City to pay the in-
terest on said bonds and to create a sinking
fund for the redemption thereof and providing
for the assessment and collection of such taxes;
enacting provisions incident and relating to
the subject and purpose of this ordinance; and
declaring an emergency.
WHEREAS, pursuant to an election held in the City of Lubbock
on the 9th day of November, 1967, this City Council became autho-
rized and empowered to issue general obligation bonds of the City 1 to mature serially over a period of years not to exceed forty "
(40) years from their date, for the purpose of making permanent
public ~provements, to wit:
$1,285,000 for constructing improvements and extensions
to the City's Waterworks System;
AND WHEREAS, pursuant to an election held in the City of
Lubbock on the 21st day of April, 1970, this City Council became
authorized and empowered to issue general obligation bonds of the
City to mature serially over a period of years not to exceed
forty (40) years from their date, for the purpose of making per-
manent public improvements, to wit:
$14,000,000 for planning, acquiring, establishing, developing,
and constructing an airport and air navigation
facilities and the site therefor, including build-
ings and other facilities incidental to the opera-
tion thereof, and the acquisition or el~ination
of airport hazards;
AND WHEREAS, pursuant to an election held in the City of
Lubbock on the 8th day of-August, 1970, this City Council became
authorized and empowered to issue general obligation bonds of the
City to mature serially over a period of years not to exceed
forty (40) years from their date, for the purpose of making per-
manent public tmprovements, to wit:
$1,800,000 to acquire or improve, or both, land for park
purposes for said City;
AND WHEREAS, under the provisions of Article 717k-2, V.A.T.c.s.,
this City Council is now empowered to issue and sell such bonds at
any price or prices and to bear interest at any rate or rates that
shall be determined within the discretion of this governing body;
and the City Council has now determined to issue such of the bonds
authorized at the elections aforementioned, as hereafter provided
to be issued and as shown below, it being understood that the City
Council reserves the right and authority to issue the remaining
amounts of the bonds in one or more series or issues at a future
date or dates when, in the judgment of the City Council such
amounts are needed for their authorized purposes. A tabulation
showing the amounts of bonds previously authorized and issued for
the respective purposes, the amounts being issued pursuant to
this ordinance for the purposes indicated, and the balance re-
maining for future issuance is as follows:
Amount Amount
Amounts Previously Being
Pur12ose Election Voted Issued Issued
WW System 11-9-67 $1,285,000 $ 109,000 *$ 402,000
Airport 4-21-70 14,000,000 ** 3,435,000 5,400,000
Parks 8-8-70 1,800,000 672,000
*Second installment of voted authorization.
**Third installment of voted authorization.
** 498,000
Unissued
Balance
$ 774,ooa I
5,165,000
630,000
AND WHEREAS, the City Council deems it advisable and to the
best interest of the City that the bonds of the authorizations
hereinabove described shall be issued,in a single combined series;
and,
WHEREAS, it is FOUND, DETERMINED AND ADJUDGED that it is
necessary and to the best interests of the City to construct the
improvements herein contemplated at the earliest possible date
for the immediate preservation of the public peace, property,
health and safety of the citizens of the City of Lubbock, Texas,
and that by virtue thereof, this ordinance shall be passed and
adopted as an emergency measure; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1: That the bonds of said City, to be known as "CITY
OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1973," be and
the same are hereby ordered to be issued in the principal sum of
SIX MILLION THREE HUNDRED THOUSAND DOLLARS ($6,300,000) for the
purpose of making permanent public improvements, to wit: $402,000
for constructing ~provements and extensions to the City's Water-
works System; $5,400,000 for planning, acquiring, establishing,
developing, and constructing an airport and air navigation facili-
ties and the site therefor, including buildings and other facili-
ties incidental to the operation thereof, and the acquisition or
elimination of airport hazards; and $498,000 to acquire or improve,
or both, land for park purposes for said City, under and by virtue
of the Constitution and laws of the State of Texas.
SEC!ION 2: That said bonds shall be numbered consecutively
from One (1) through One Thousand Two Hundred Sixty (1260); shall
ea·ch be in denomination of Five Thousand Dollars ($5 7 000), aggre-
gating SIX MILLION THREE HUNDRED THOUSAND DOLLARS ($6,300,000);
shall be dated August 1, 1973; and shall become due and payable
serially, without right of prior redemption, on February 1 in
each of the years in accordance with the following schedule:
MATURITY AMOUNT MATURITY AMOUNT
1974 $315,000 1984 $315,000
1975 315,000 1985 315,000
1976 315,000 1986 315,000
1977 . 315,000 1987 315,000
1978 315,000 1988 315,000
1979 315,000 1989 315,000
1980 315,000 1990 315,000
1981 315,000 1991 315,000
1982 315,000 1992 315,000
1983 315,000 1993 315,000
SEC!ION 3: That said bonds shall bear interest from date to
maturity at the following rates per annwn.:
(a) Bonds maturing in the year 1974 at 4.75%;
(b) Bonds maturing in each of the years 1975
through 1977 at 6.40%;
(c) Bonds maturing in each of the years 1978
through 1980 at 4.50%;
(d) Bonds maturing in the year 1981 at 4.55%;
(e) Bonds maturing in the year 1982 at 4.60%;
(f) Bonds maturing in the year 1983 at 4.65%;
(g) Bonds maturing in the year 1984 at 4.70'7o;
(h) Bonds maturing in the year 1985 at 4.75"/o;
(i) Bonds maturing in the year 1986 at 4.80%;
(j) Bonds maturing in the year 1987 at 4.85%;
(k) Bonds maturing in the year 1988 at 4.90%;
(1) Bonds maturing in each of the years 1989
through 1993 at 5.00%;
such interest to be evidenced by proper coupons attached to each
of said bonds, and said interest shall be payable on February 1,
1974, and semiannually thereafter on August 1 and February 1 in
each year.
SECTION 4: That both principal of and interest on said bonds 1
shall be payable in lawful money of the United States of America,
without exchange or collection charges to the owner or holder, at I
the FIRST NATIONAL CITY BANK, New York, New York, or, at the '
option of the holder, at the TEXAS COMMERCE BANK, NATIONAL ASSOCIA-
TION, Lubbock, Texas, upon presentation and surrender of bonds or
proper coupons.
SECTION 5: That the seal of said City may be ~pressed on
each of said bonds or, in the alternative, a facsimile of such
seal may be printed on the said bonds. The bonds and interest
coupons appurtenant thereto may be executed by the imprinted fac-
simile signatures of the Mayor and City Secretary of the City,
and execution in such manner shall have the same effect as if
such bonds and coupons had been signed by the Mayor.and City
Secretary in person by 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 for the Comptroller)
shall be required to be manually subscribed to such bonds in con-
nection with his registration certificate to appear thereon, as
hereinafter provided, all in accordance with the provisions of
Article 717j-l, V.A.T.c.s.
SECTION 6: That the form of said bonds shall be substan-
tially as follows:
NO. UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF WBBOCK, TEXAS, GENERAL OBLIGATION
BOND, SERIES 1973
$5,000
The CITY OF LUBBOCK, a municipal corporation of the State of
Texas, acknowledges itself indebted to and, FOR VALUE RECEIVED,
hereby promises .to pay to bearer, without right of prior redemp•
tion, the sum of
FIVE THOUSAND DOLlARS
($5,000), in lawful money of the United States of America, on the
FIRST DAY OF FEBRUARY, 19 ____ , with interest thereon from the
date hereof to maturity at the rate of PER CENTUM
( %) per annum, payable on February 1, 1974, and semiannu-
ally thereafter on August 1 and February 1 in each year, and
interest falling due on or prior to maturity hereof is payable
only upon presentation and surrender of the interest coupons
hereto attached as they severally become due.
BarH PRINCIPAL OF and interest on this bond are hereby made
payable at the FIRST NATIONAL CITY BANK, New York, New York, or,
at the option of the holder, at the TEXAS COMMERCE BANK, NATIONAL l
ASSOCIA"TION., Lubbock, Texas, without exchange or collection charges
to the owner or holder, and for the prompt payment of this bond
and the interest thereon at maturity, the full faith, credit and
resources of the City of Lubbock, Texas, are hereby irrevocably
pledged.
" . . .... . • ·':• ,r .•
THIS BOND is one of a series of One Thousand ~vo Hundred Sixty
(1260) serial bonds, numbered consecutively from One (1) through
One Thousand Two Hundred Sixty (1260), each in denomination of
Five Thousand Dollars ($5,000), aggregating SIX MILLION THREE
HUNDRED THOUSAND DOLLARS ($6,300,000), issued for the purpose
of making permanent public improvements, to wit: $402,000 for
constructing improvements and extensions to the City's Water-
works System; $5,400,000 for planning, acquiring, establishing,
developing, and constructing an airport and air navigation facili-
ties and the site therefor, including buildings and other facili-
ties incidental to the operation thereof, and the acquisition or
elimination of airport hazards; and $498,'000 to acquire or improve,
or both, land for park purposes for said City, under authority of
the Constitution and laws of the State of Texas, and pursuant to
an ordinance duly adopted by the City Council of the City of
Lubbock, Texas, and recorded in the Minutes of said City Council.
IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED that the
issuance of this bond and the series of which it is a part is
duly authorized by law and by authority expressly conferred at
elections held for that purpose within said City; that all acts,
conditions and things required to be done precedent to and in
the issuance of this series of bonds and of this bond, have
been properly done and performed and have happened in regular
and due time, form and manner as required by law; that suffi-
cient and proper provision has been made for the levy and collec-
tion of taxes which, when collected, shall be appropriated exclu-
sively to the payment of this bond and the series of which it is
a part, and to the payment of the interest coupons thereto annexed,
as the same shall become due; and that the total indebtedness of
, the City of Lubbock, Texas, including the entire series of bonds
of which this is one, does not exceed any constitutional or statu-
tory limitation.
IN TESTIMONY WHEREOF, the City Council of the City of
Lubbock, Texas, in accordance with the provisions of Article
717j-l, V.A.T.C.S., has caused the seal of said City to be im-
pressed or a facsimile thereof to be printed hereon, and this
bond and its appurtenant coupons to be executed with the im-
printed facsimile signatures of the Mayor and City Secretary
of said City; the· date of this bond, in conformity with the
ordinance above referred to, being the FIRST DAY OF AUGUST,
1973.
Mayor, City of Lubbock, Texas
COUNTERSIGNED:
City Secretary, City of Lubbock, Texas
SEGriON 7: That the form of interest coupons attached to
each of said bonds shall be substantially as follows:
NO. ON THE FIRST DAY OF -----' $ __ _
19 ___ ,
. , ...
the CITY OF LUBBOCK, a municipal corporation of the State of
Texas, hereby promises to pay to bearer, at the FIRST NATIONAL
CITY BANK, New York, New York, or, at the option of the holder,
at the TEXAS COMMERCE BANK, NATIONAL ASSOCIATION, Lubbock, Texas,
without exchange or collection charges to the owner or holder,
the sum of
DOLLARS --------------------------
($ ), in lawful money of the United States of America,
said sum being months' interest due that day on "CITY
OF LUBBOCK, TEXAS, GENERAL OBLIGATION BOND, SERIES 1973," dated
August 1, 1973. Bond·. No.
City Secretary Mayor
SECTION 8: That the following certificate shall be printed
on the back of each bond:
OFF! CE OF COMPTROLLER
STATE OF TEXAS
J.
I
I
REGISTER NO.
I HEREBY CERTIFY that there is on file and of record in my
office a certificate of the Attorney General o£ the State of Texas,
to the effect that this bond has been examined by him as required
by law, and that he finds that it has been issued in conformity
with the Constitution and laws of the State of Texas, and that
it is a valid and binding obligation upon said City of Lubbock,
Texas, and said bond has this day been registered by me. ·
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas, _.I
Comptroller of Public Accounts of
the State of Texas
SECTION 9: That to provide for the payment of the debt
service requirements on the said bonds, being (i) the interest
on said bonds and (ii) a sinking fund for their redemption at
maturity or a sinking fund of 2% (whichever amount shall be
greater), there shall be and there is hereby levied for the
current year and each succeeding year thereafter while said
bonds or interest thereon shall remain outstanding and unpaid,
a sufficient tax on each one hundred dollars' valuation of tax-
able property in said City, adequate to pay such debt service
requirements, full allowance being made for delinquencies and
costs of collection; said tax shall be assessed and collected
each year and applied to the payment of the said debt service
requirements, and the same shall not be diverted to any other
purpose. The taxes so levied shall be paid into a fund known
as "SPECIAL GENERAL OBLIGATION BOND roND, SERIES 1973," which
is hereby established for the payment of the obligations herein
authorized. The City Council hereby declares its purpose .and
intent to provide and levy a tax legally and fully sufficient
for such bonds, it having been dete~ined that the existing and
available taxing authority of the City for such purpose is ade-
quate to permit a legally sufficient tax in consideration of all
other outstanding obligations.
SECTION 10: That the Mayor of said City shall be and he is
hereby authorized to take and have charge of all necessary orders
and records pending investigation by the Attorney General of the
State of Texas, and shall take and have charge and control of the
bonds herein authorized pending their approval by the Attorney
General and their registration by the Comptroller of Public
Accounts.
to
SECTION 11: That the seal of the bonds herein authorized
First National Bank in Dallas, Dallas, Texas
and Associates
at the price of par and accrued interest to date of delivery,
plus a premium of $ 78.75 is hereby confirmed. Delivery
of the bonds shall be made to said purchasers as soon as may be
after the adoption of this ordinance, upon payment therefor in
accordance with the terms of sale.
SECTION 12: That the purchasers' obligation to accept de-
livery of the bonds herein authorized is subject to their being
furnished a fina 1 opinion of Messrs. Dumas, Huguenin, Bootlunan
and Morrow, Attorneys, Dallas, 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
such bonds, with appropriate certificate pertaining thereto exe-
cuted by facsimile signature of the City Secretary of the City of
Lubbock, Texas, is hereby approved and authorized.
SECTION 13: That the City hereby covenants that the pro-
ceeds from the sale of said bonds will be used as soon as practi-
cable for the purpose for which said bonds are issued; that such
proceeds will not be invested in any securities or obligations
except for the temporary period pending such use; and that such
proceeds will not be used directly or indirectly so as to cause
all or any part of said bonds to be or become "arbitrage bonds"
within the meaning of Section 103(d) of the Internal Revenue Code
of 1954, as amended, or any regulations or rulings prescribed or
made pursuant thereto.
SECTION 14: CUSIP numbers are to be printed on the bonds
herein authorized. It is expressly provided, however, that the
presence or absence of CUSIP numbers on the bonds shall be of no
significance or effect as regards the legality thereof and neither
the City nor attorneys approving said bonds as to legality are to
be held responsible for CUSIP numbers incorrectly printed on the
bonds.
SECTION 15: 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 purpose of constructing the improvements
herein contemplated at the earliest possible date for the ~e
diate 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 and 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 12th day of July, 1973.
Mayor, City of Lubbock, Texas
. ATTEST:
Secretary, City of Lubbock,
Texas
(City Seal)