HomeMy WebLinkAboutOrdinance - 8063-1980 - An Ordinance By The City Council Authorizing $6,450.00 For Public Improv. - 06/26/1980ORDINANCE NO. 8063
AN ORDINANCE by the City Council of the City of Lubbock,
Texas, authorizing the issuance of $6,450,000 "CITY
OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS,
SERIES 1980," dated July 11 1980, for the purpose of
making permanent public improvements I to wit:
$5 I 082 1000 for constructing improvements and exten-
sions to the City's waterworks system; $800,000 for
constructing improvements and extensions to the City's
sanitary sewer system; and $568 1000 for constructing
street improvements in and for said City, including
lighting and signalization; prescribing the form of the
bonds and the form 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 interest
on said bonds and to create a sinking fund for the redemp-
tion thereof and providing for the assessment and collec-
tion of such taxes; enacting provisions incident and
. relating to the subject and purpose of this ordinance;
and providing an effective date.
WHEREAS, pursuant to an election held in the City of Lubbock, Texas,
on the 21st day of May I 1977 I this City Council became authorized and em-
powered 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 permanent public improvements, to wit:
$161775,000 for constructing improvements and extensions to
the City's waterworks system;
3, 3031000 for constructing improvements and extensions to
the City's sanitary sewer system; and
4 1 782 1000 for constructing street improvements in and for
said City, including lighting and signalization;
AND WHEREAS this City Council now deems it advisable and to the
best interest of the City that of the bonds voted at the election held May 21,
1977, the following should be issued 1 all as reflected by the following table:
AMOUNT AMOUNT
AMOUNT PREVIOUSLY BEING UNISSUED
PURPOSE AUTHORIZED ISSUED ISSUED BALANCE
WW Imp & Ext $1617751000 $61543,000 $5,082,000 $5,150,000
SSS Imp & Ext 3,3031000 11230,000 800,000 1,273,000
St Imp, Lighting
& Signalization 4,782,000 2,575,000 568,000 1,639,000
AND WHEREAS, by final judgment entered on the 14th day of April,
1980, in Cause No. 98,215 in the 237th District Court of Lubbock County,
Texas, the Court duly valiqated $6~450,000 "City of Lubbock, Texas, General
Obligation Bonds, Series 1980" together with various instruments, documents
and procedures employed and to be employed in the authorization, issuance
and sale thereof; and
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II ·1 . WHEREAS I by virtue of changes in conditions. occurring subsequent to
the entry of the aforementioned validating judgment and presentation of the bond
proceedings upon which it was based 1 it becomes necessary to rearrange certain
details of the aforementioned bonds and their various supporting instruments,
documents and procedures so that they may be made current as of the date of
the delivery of the bonds [such as (i) those relating to the dating of the bonds,
(ii) recitals pertaining to their redemption prior to maturity and (iii} provisions
regarding their sale}, none of which changes in any manner affect the validity
of the bonds or the validity of their various supporting instruments I documents
and procedures; and
WHEREAS the possible necessity of such rearrangements and the author-
ity to make them were particularly recognized under the terms of the judgment
and consequently the details of the bonds as rearranged and as reflected in this
ordinance are in all respects consistent with the wording, intent and purpose of
1 said judgment; and ·
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WHEREAS the bonds herein authorized are thus entitled to enjoy all
benefits afforded the previously authorized bonds under said judgment with the
result that its validating provisions are properly extended and shall apply equally
to the herein authorized bonds and the procedures to he employed in their issu-
ance and sale and accordingly such are fully validated; and
WHEREAS the City Council has determined that it is now proper to pro-
ceed with the authorization, issuance and sale of such bonds for the purpose
of conducting the program of improvements to which the bonds relate; now 1
therefore,
BE IT ORDAINED BY THE CITY COUNCTI. 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 1980,n be and same
are hereby ordered to be issued under and by virtue of the Constitution and laws
of the State of Texas, including Article 1175 1 R. C. S. of Texas, 1925 I as
amended, and pursuant to the Charter of said City, for the purpose of making
permanent public improvements I to wit; $5,082,000 for constructing improve-
ments and extensions to the City's waterv,.rorks system; $800,000 for construct-
ing improvements and extensions to the City's sanitary sewer system; and
$5 68 1 000 for constructing street improvements in and for said City, including
lighting and signalization, aggregating altogether the principal sum of SIX
MILLION FOUR HUNDRED FIFTY THOUSAND DOLLARS ($6,450,000).
SECTION 2: Said bonds shall be numbered consecutively from One
(1) through One Thousand Two Hundred Ninety (1290) 1 shall each be in denom-
ination of Five Thousand Dollars ($5 ~000), aggregating in principal amount
SIX MILLION FOUR HUNDRED FIFTY THOUSAND DOLLARS {$61450 1 000); shall
he dated July 11 1980 I and shall become due and payable serially on February 1 in
each of the years and bear interest at rates in accordance with the following
schedule:
BOND NUMBERS COUPON
~11 Inclusive) MATURITY AMOUNT RATE
1 to 64 1981 $320,000 7~ %
65 to 128 1982 320,000 7~ %
129 to 192 1983 320,000 z~ %
193 to 256 1984 320,000 Z1l %
257 to 320 1985 320,000 7~ %
321 to 384 1986 320,000 z~ %
385 to 448 1987 3201000 :Zl;a %
449 to 512 1988 320,000 74 %
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BOND NUMBERS COUPON
(All Inclusive) MATURITY AMOUNT RATE
513 to 576 1989 $320,000 7~ %
577 to 640 1990 320,000 7~ %
641 to 705 1991 325,000 7.20%
706 to 770 1992 325,000 6.20%
771 to 835 1993 325,000 6.30%
836 to 900 1994 325,000 6 so%
901 to 965 1995 325,000 6.70%
966 to 1030 ·1996 325,000 fi.tjQ%
1031 to 1095 1997 325,000 7.0 %
1096 to 1160 1998 325,000 5!s %
1161 to 1225 1999 325,000 '>!:! %
1226 to 1290 2000 325,000 5!:i %
PROVIDED, HOWEVER, that the City reserves the right to redeem the bonds of
said series maturing on February 1, 1991, and subsequent, in whole or any
part thereof, on February 1, 1990, or on any interest payment date thereafter,
at the price of par and accrued interest to the date fixed for redemption; PRO-
VIDED, FURTHER, that at least thirty (30) days prior to any interest payment
date upon which any of said bonds are to be redeemed, a 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 CITIBANK, N. A. 1 New
York, New York, and the TEXAS COMMERCE BANK, NATIONAL ASSOCIATION,
Lubbock, Texas (the paying agents named in each of said bonds); and if by
the date so fixed for redemption the City shall have made available funds in
amounts sufficient to pay the bonds to be redeemed and accrued interest ~hereon,
any bond or bonds not presented for redemption pursuant to such notice shall
cease to bear interest from and after the date so fixed for redemption and said
I! bonds shall not be regarded as being outstanding for any purpose except for the
!! purpose of receiving the funds so provided for their payment.
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SECTION 3: The bonds herein authorized to be issued shall bear
interest from date to maturity at the per annum rates shown in Section 2, such
interest to be evidenced by proper coupons attached to each of said bonds, and
said interest shall be payable on February 1, 1981 and semiannually thereafter
on August 1 and February 1 in each year.
SECTION 4: Both principal of and interest on said bonds shall be
payable in lawful money of the United States of America, without exchange or
collection charges to the owner or holder, at the CITIBANK, N. A,, New York,
New York, or, at the option of the holder, at the TEXAS COMMERCE BANK,
NATIONAL ASSOCIATION, Lubbock, Texas, upon presentation and surrender of
I II bonds or proper coupons.
SECTION 5: The seal of said City may be impressed on each of said
bonds or, in the alternative 1 ·a facsimile of such seal may be printed on each·
of said bonds. The bonds and interest coupons appurtenant thereto may be
executed by the imprinted facsimile 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 of the State of Texas 1 only
his signature (or that of a deputy designated in writing to act for the Comptrol-
ler) shall be required to be manually subscribed to such bonds in connection
with his registration certificate to appear thereon 1 as hereinafter provided; all
in accordance with the provisions of Article 717j-l, V .A. T. C .S.
SECTION 6: The form of said bonds shall be substantially as follows:
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NO. __ _ UNITED STATES OF AMERICA $5,000
STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BOND,
SERIES 1980
The CITY OF LUBBOCK, a municipal corporation of the State of Texas,
acknowledges itself indebted to and, FOR VALUE RECENED, hereby promises
to pay to bearer the sum of
FNE THOUSAND DOLLARS
($5, 000), in lawful money of the United States of America, on the 1st day of
February, , with interest thereon from the date hereof to maturity at the
rate of ---PER CENTUM %) per annum,-
payable on February 1, 1981, and semiannually 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.
BOTH PRINCIPAL OF and interest on this bond are hereby made payable
at the CITIBANK, N. A., 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, 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.
THIS BOND is one of a series of One Thousand Two Hundred Ninety
(1290) serial bonds, numbered consecutively from One (1) through One Thou-
sand Two Hundred Ninety (1290), each in denomination of Five Thousand
Dollars ($5, 000), aggregating SIX MILLION FOUR HUNDRED FIFTY THOUSAND .
DOLLARS ($6,450,000), issued for the purpose of making permanent public
improvements, to wit: $5,082,000 for constructing improvements and exten-
sions to the City's waterworks system; $800,000 for constructing improvements
and extensions to the City's sanitary sewer system, and $568,000 for con-
structing street improvements in and for said City, including lighting and
signalization, under authority of the Constitution and laws of the State of
Texas, including Article 1175, R.C.S. of Texas, 1925, as amended, and pur-
suant to the Charter of said City of Lubbock, an election duly called and held
in said City on the 21st day of May, 1977, and an ordinance duly adopted by
the City Council of the City of Lubbock, Texas, and recorded in the Ordinance
Records of said City.
AS SPECIFIED in the ordina nee hereinabove mentioned, the City reserves
the right to redeem the bonds of this series maturing on February 1, 1991, and
subsequent, in whole or any part thereof, on February 1, 1990, 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 upon which any of said bonds are to be redeemed,
a notice of redemption, signed by the City Secretary (specifying the serial num-
bers and amount of bonds to be redeemed) shall have been filed with the CITI-
BANK, N.A., New York, New York, and the TEXAS COMMERCE BANK, NATIONAL
ASSOCIATION, Lubbock, Texas; and if by the date so fixed for redemption the
City shall have made available funds in amounts sufficient to pay the bonds to
be redeemed and accrued interest thereon, any bond or bonds not presented for
redemption pursuant to such notice shall cease to bear interest from and after
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outstanding for any purpose except for the purpose of receiving the funds so ·
provided for their payment.
THE DATE of this bond, in conformity with the ordinance above men-
tioned, is July 1, 1980.
IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED that all acts,
conditions and things required by the Constitution and laws of the State of
Texas, and the Charter of said City, to be done precedent to and in the issu-
ance of this bond and said series of bonds, have been done, happened and
been performed in regular and due time, form and manner as required by law; 1
that proper provisions have been made for the levy and collection annually of ! .
taxes upon all taxable property in said City of Lubbock, Texas, sufficient to
pay the interest on this series of bonds as due and to provide for the payment
of each installment of principal as same matures; that when so collected, such
taxes shall be appropriated exclusively to such purposes; and that the total
indebtedness of the City of Lubbock, Texas, including this bond and the series
of which it is one, does not exceed any statutory or Constitutional limitation.
THIS BOND AND ITS SERIES have been validated by judgment of the
District Court of Lubbock County, Texas, entered the 14th day of April, 1980
in Cause No. 98,215 styled "Ex Parte: City of Lubbock, Texas."
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 impressed 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 as of
the date hereof, being the first day of July, 1980.
Mayor, City of Lubbock, Texas I .COUNTERSIGNED: !
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City Secretary, City of Lubbock, Texas
SECTION 7: The form of the interest coupons attached to each of said
bonds shall be substantially as follows:
*(unless the bond to which this coupon pertains has
been properly called for redemption in accordance
with its terms,) upon presentation and surrender of
this coupon, the CITY OF LUBBOCK, a municipal cor-
poration of the State of Texas, hereby promises to pay
to bearer the amount shown hereon in lawful money of
the United States of America, without exchange or col-
lection charges to the owner or holder hereof, at the
CITIBANK, N. A., New York, New York, or, at the
option of the holder, at the TEXAS COMMERCE BANK,
NATIONAL ASSOCIATION, Lubbock, Texas, said sum
being months' interest due that day on "CITY
OF LUBBOCK, TEXAS, GENERAL OBLIGATION BOND,
SERIES 1980," dated July l, 1980.
City Secretary Mayor
On the 1st day of
No. __ $ __
SERIES 1980
Bond No. __ _
*NOTE TO PRINTER: The expression in parentheses to be included only in
coupons maturing August 1, 1990, and subsequent, pertaining to optional
bonds maturing in the years 1991 through 2000.
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SECTION 8: The following certificate shall be printed on the back of
each bond:
OFFICE OF COMPTROLLER §
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STATE OF TEXAS §
REGISTER NO. ----
I HEREBY CERTIFY that there is on file and of record in my office a
certificate of the Attorney General of the State of Texas to the effect that this
bond has been examined by him as required by law, that he finds 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 as of--------·
I SECTION 9; To P'~lde fo• ::m::~::, :::!:::~:::~. 0
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1,··.~. ments on 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 taxable property in said City adequate to pay such debt service
requirements, full allowance being made for delinquencies and costs of collec-
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tion; said tax shall be assessed and collected each year and applied to the
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' payment of 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 FUND, SERIES 1980 ,"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 determined that the existing
and available taxing authority of the City for such purpose is adequate to per-
11 mit a legally sufficient tax in consideration of all other outstanding obligations •
. i SECTION 10: Having duly received and considered bids for the pur-
chase of the $6,450,000 "City of Lubbock, Texas, General Obligation Bonds,
Series 1980" herein authorized, the City Council has found and determined that
the bid of
Republic National Bank of Dallas)
Harris Trust and Savings Bank Joint
in Chicago )
First Boston Corporation .Managers
offering to purchase said bonds bearing interest at the rates shown in Section
2 hereof produces the lowest effective interest cost to the City, resulting in
an effective interest rate of 6.5577 %, and is therefore the best bid received.
Accordingly, said bid is hereby accepted and said bonds are hereby sold and
awarded to the above named purchaser.
SECTION 11: The Official Statement dated May 22, 1980, with respect
to the sale of the bonds is hereby approved and the purchaser thereof is author-
ized to use such Official Statement and any addendum, supplement or amendment
relating thereto in reoffering such bonds. The City Manager is hereby authorized
and directed to provide such purchaser with fifty (50) copies of the Official
Statement (and a like number of copies of any addendum, supplement or amend-
ment thereto), complete except as to interest rates and other terms relative to
a reoffering of the bonds.
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SECTION 12: The Mayor of said City shall be and he is hereby author-
ized to take and have charge of all necessary orders and records pending inves-
tigation by the Attorney General of the State of Texas, and shall take and have
charge and control of the bonds herein authorized pending their approval by the
Attorney General and their registration by the Comptroller of Public Accounts.
SECTION 13: The purchasers' obligation to accept delivery of the
bonds herein authorized is subject to their being furnished a final opinion of
Messrs. Dumas, Huguenin, Boothman and Morrow, Attorneys, Dallas, Texas,
approving such bonds as to their validity, said opinion to be dated and deliv-
ered as of the date of delivery and payment for such bonds. Printing of a true
1 and correct copy of said opinion on the reverse. side of each of such bonds, with ll appropriate certificate pertaining thereto executed by facsimile signature of the
I City Secretary of the City of Lubbock, Texas, is hereby approved and authorized.
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SECTION 14: The City certifies that based on facts 1 estimates and
circumstances expected to exist on the date of the issue of the Series 1980
Bonds it is not reasonable to anticipate that the proceeds thereof will be used
in a manner which would cause them to be "arbitrage bonds" within the meaning
of Section 103 (c) of the Internal Revenue Code of 1954, as amended, or regula-
tions thereunder applicable thereto, and the officers of the City charged with
responsibilities in the issuance of bonds are authorized and directed to make 1
execute and deliver certifications as to facts, estimates and circumstances in.
existence as of the date of the issue of said bonds and statim] whether there
are any facts, estimates or circumstances which would materially change the
City's present expectations. The covenants herein made and the certifications
herein authorized are for the benefit of the holders from time to time of said
Series 1980 Bonds and the coupons appertaining thereto and may be relied upon
by said holders and by bond counsel for the City. •
SECTION 15: CUSIP numbers may 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 16: For reasons recited in the preamble hereof, this ordinance 1
shal; stand in lieu of Ordinance lli; · 7970 passed by .the City Council on Novem-I
ber 29,1979 and this ordinance and bonds herein contem. plated shall enjoy all I'
benefits of validation afforded said previous ordinance and bonds under the
judgment ofApri114, 1980 in Cause No. 98,215 in the 237th District Court of
Lubbock County, Texas. j
SECTION 17: This ordinance shall take effect and be in force immedi-
ately from and after its final passage, and it is so ordained.
PASSED AND APPROVED on first reading the 26th day of June, 1980.
PASSED AND APPROVED on second rea ' 1980.
Texas
(City Seal)
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OFFICIAL BID FORM
Honorable Mayor and City Council
City of Lubbock Lubbock, Texas
Gentlemen:
June 26, 1980
Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated
May 22, 1980, of $6,450,000 CITY Of LUBBOCK, TEXAS GENERAL OBLIGATION BONDS, SERIES 1980, both of wh 1 ch cons t I tute a part hereof.
For your legally issued Bonds, as described in said Notice of Sale and Bidding Instructions and
Official Statement, we will pay you par and )lccrued interest from date of issue to date of
delivery to us, plus a cash premium of $ -V-for Bonds maturing and bearing interest as follows:
Interest Interest Interest Maturity Rate Maturity ~ Matur1tl Rate
2-1-1981 7fz,; 2-1-1988 711-,.% 2-1-1994 &,J-;;%
2-1-1982 7'12..% 2-1-1989 7 '/,_ % 2-1-1995 .tb. ?o%
2-1-1983 7 'l':z..% 2-1-1990 7~% 2-1-1g96 ~.J'a,;
2-1-1984 71f:t.% 2-l-1991 7.~0% 2-1-1997 ZD:l,;
2-1-1985 ?'12..% 2-1-1992 tJ . .3o% 2-1-1998 .:rt._%
2-1-1986 7'l'z..,; 2-1-1993 t..;o% 2-1-1999 ~ 2-1-1987 7'/z...% 2-1-2000 %
Our calculation (which is not a part of this bid) of the interest cost from the above is:
Total Interest Cost $ ~,'?/'/, 39/.6 (,
Less Premi urn
NET INTERST COST
EFFECT! VE INTEREST RATE
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Cashier's Check of the City National Bank, Austin Texas,
in the amount of $129,000.00, which represents our Good Faith Deposit ~:l§iiiijXIlr
(has been made available to you prior to the opening of this bid), and is submitted in
accordance with the terms as set forth in the Official Statement and Notice of Sale and Bidding
Instructions.
We agree to accept delivery of and make payment for the Bonds at City National Bank,
Austin, Texas, on July 31, 1980, or thereafter on the date the Bonds are tendered for delivery,
pursuant to the terms set forth in the Notice of Sale and Bidding Instructions.
Respectfully submitted, Republic National Bank )J f D ll a oint Barris 'ruet and Savirigs) t!anl\: in cn1.cago
President
The above and foregoing bid is hereby in all things accepted by the City of lubbock, Texas, this
the 26th day of June, 1980. £~ ~
Mayor
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Return of Good Faith Deposit is hereby acknowledged:
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