HomeMy WebLinkAboutOrdinance - 5639-1969 - Authorizing Issue Of "City Of Lubbock, Texas, Airport Revenue Bonds, Series 1969 - 03/29/1969Q , ... • . '~
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ORDINANCE NO. 5639
"AN ORDI:'~ANCE by the c .:.ty Cvuncil of the City of
Lubbock, Texas, a~:hor~z~ng t~e iss ~ance of
1City of Lubbock, Texas , Airpo~t ~e ve~ue Bonds,
Series 1969 1 , dated Mar~h 15, 196S. in t he
aggregate princip.,l amoant of S2, SC ') > 000 for the
purpose of enlarging, extendin~, re?air~ng and
improving the municipa l airport u.Z the C ~ty of
Lubbock, Texas, as authorized by ~h2 6eneral
laws of the State of Texas, includi ng Arcic:e
1269j -5, Article 1269j -5.2, anrl Art.:.cle 46d ··6 ,
V.A.T.C.S., and Senate Bill 20, Ac es of the 0!st
Legislature, Regule1r Session, 1969, a nd maki..~
provision for the payment anc secur~ty of s a~d
bonds and the interest thereon, and for the ~jay:
ment of the maintenance and operating expens es
of the airport; prescr~bing the forms of b0r :3
and interest coupons; ordaining other prov~s~on~
incident and relating to the subject and purpos~
of the ordinance, and declaring an emergency.''
WHEREAS, the City of Lubbock, Texas, ~s opera~ih~-.. ~r
t n...:! provisions of the Home Rule Amendment to tl"n~ Con~ t~ :ut
the State of Texas pursuant to a charter vrigiaally ado?te ~n
election held on the 27th day of December, 1917, and tnerec..~ ... -..-
am~nded from time to time; and
WHEREAS, the City of Lubbock now .. 2 s a popu.i.c cit•.
exc·~s~. of 125, ~00 inhabitant.; anc. had such ?Opu~at! .:>r • ...,. :: t .
v che iast preceding Federal census; and
WHEREAS, for a number of years the c~ty of ~~Jbc
..;,wa~d ..ind operated an airport to serve its inhab::..tants ~ ar •.
now deemed to the best interest of the City ana .... tit ii., .ab~
to provide for the issuance of airport revenue ooac._ i ;--, or,
..= •• lar~;e, extend, repair and improve the airporc, .. nd t ··.~ fa.: .
. _._ .1. improvement program should be accomplisLC!~ ~~ ::h(.. ~a1:
.)ract:..cal date constitute this ordinance an .: ... ::r ;_ e .••. y --~a~
_r.e immediate ?reservation of the public pe.:-.;~t pr~."-~::.f,
.... .J..=-.;!ty, g ood g.::.verr.J:,':!4t, oroer and security .v f the-Cit · an .... _ ..
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
SECTION 1: Authorization -Principal Amount -Designa-
tion. That in order to borrow the sum of TWO MILLION FIVE HUNDRED
THOUSAND DOLLARS ($2,500,000) for the purpose of enlarging, extend-
ing, repairing and improving its municipal airport, the City Coun-
.
cil of the City of Lubbock, Texas, has determined and does hereby
determine that there shall be issued and there is hereby ordered
to be issued a series of coupon bonds in the total principal sum
of TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000), to be
designated "City of Lubbock, Texas, Airport Revenue Bonds, Series
1969", which bonds shall be payable as to both principal and inter-
est solely from and equally secured by a lien on and pledge of
the gross revenues of the municipal airport.
SECTION 2: Date -Numbers -Maturity. Said bonds shall
be dated March .l5, 1969, shall be numbered consecutively fram
One (1) through Five Hundred (500), shall each be in d~nomination
of Five Thousand Dollars ($5,000), aggregating the aforesaid prin-
cipal sum, and shall become due and payable serially, without right
of prior redemption, on March 15 in each of the years in accordance
with the following schedule:
BOND NUMBERS
(All Inclusive)
1 to 25
26 to 50
51 to 75
MATURITY DATES
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1970
1971
1972
AMOUNTS
$125,000
125,000
125,000
Continued --
BOND NUMBERS
{All Inclusive} MATURITY DATES AMOUNTS
76 to 100 1973 $125,000
101 to 125 1974 125,000
126 to 150 1975 125,000
151 to 175 1976 125,000
176 to 200 1977 125,000
201 to 225 1978 125,000
226 to 250 1979 125,000
251 to 275 1980 125,000
276 to 300 1981 125,000
301 to 325 1982 125,000
326 to 350 1983 125,000
351 to 375 1984 125,000
376 to 400 1985 125,000
401 to 425 1986 125,000
426 to 450 1987 125,000
451 to 475 1988 125,000
476 to 500 1989 125,000
SECTION 3: Interest Rates. That said bonds shall bear
===--=-=-.. :-:. _=-:_::---il-.1n.1~~e~.t £rom date to maturity at the following rates per annum:
(a) Bonds maturing in each of the years 1970 through
19_1i at I>-~ t;
(b) Bonds maturing in<eeeh of the yearfl9.2f througk
~-at $7 ~ 1.;
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(c) Bonds maturing in eee& ef the yea~ 19~ throu~
at S:.fz %; ,
(d) Bonds maturing in each of the years 19~ through
19n at £79 %;
(e) Bonds maturing in each of the years 19.lfi through
19/!/ at f: 9o %;
(f) Bonds maturing in each of the years 19~ through
19.ff_ at
such interest to be evidenced by proper coupons attached to said
bonds, and said interest shall be payable on September 15, 1969, an
semi-annually thereafter on March 15 and September 15 in each year.
SECTION 4: Places of Pavment. Both principal of and
interest on this series of bonds shall be payable in lawful money
======-=~-U----
of the United States of America, without exchange or collection
charges to the owner or holder, at the
------~F~I;R~S~T~NA~T~I~O~NA~L~C~I~TY~B~A~NK~·~N~e~w~Y~o~r~k~,_N~ew~Y~o~r~k~---------'
or, at the option of the holder, at the
___ ......;:C;,.=I;.;;T.:=.IZ;::;.;E=.:N:.:.;S::;_,;.NA.;;.;.::T.::.IO.:;..NA;:.;.;.;:L::....:;B;,;.;A;,;.;NK:,:.;:_O;;;.;F:......:L::.;UB:..;;;.::B;.;;;O..;;;CK~, ....:L::.;:u:;;;::b;,.=b;.;;;o..;::;c;..=.k.L., ....:T::.;e:;;.x;;,;:a;,;:;s ___ ,
upon presentation and surrender of bonds or proper coupons .
SECTION 5: Execution of Bonds and Coupons. The seal
of said City may be impressed 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 facstmile signatures of the Mayor and
City Secretary of the City and execution in such manner shall have
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. . .
the s ame 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 Camp-
troller of Public Accounts for the State of Texas, only his signa-
ture (or that of a deputy designated in writing to act for 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 pro-
visions of Article 717j-l, V.A.T.c.s.
SECTION 6: Form of Bonds. The form of said bonds shall
be substantially as follows :
NO. UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK, TEXAS, AIRPORT REVENUE BOND
SERIES 1969
$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 redemption, as hereinafter stated, the sum of
FIVE THOUSAND DOLLARS
($5,000), in lawful money of the United States of America, on
the FIFTEENTH DAY OF MARCH, 19 ___ , with interest thereon
. ~ ----· . --
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from the date hereof to maturity at the rate of --------------
PER CENTUM l) per annum, payable on September 15, -------·
1969, and semi-annually thereafter on March 15 and September 15
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
---=--'"'-:--____ 11_~m~ayable at the FIRST NATIONAL CITY BANK, New York, New York,
or, at the option of the holder, at the CITIZENS NATIONAL BANK OF
LUBBOCK, Lubbock, Texas, without exchange or collection charges to
the owner or holder, and the City of Lubbock, Texas, is hereby held
and firmly bound to apply the gross revenues of the airport to the
prompt payment of principal of and interest on this bond at maturity
and to pay said principal and interest as they mature.
THIS BOND is one of a series of bonds of like tenor and
effect, except as to number, interest rate and maturity, aggre-
gating the principal sum of TWO MILLION FIVE HUNDRED THOUSAND
DOLLARS ($2,500,000), the bonds being numbered consecutively from
One (1) through Five Hundred (500), each in denomination of Five
Thousand Dollars ($5,000), for the purpose of enlarging, extending
repairing and improving the municipal airport of the City of
Lubbock, Texas, in accordance with the Constitution and laws of
the State of Texas, particularly Article 1269j-5, Article 1269j-5.2,
and Arti~le 46d-8, V.A.T.C.s., and Senate Bill 20, Acts of the
6lst Legislature, Regular Session, 1969, and pursuant to an
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ordinance passed by the City Council of the City of Lubbock,
Texas, and duly recorded in the Minutes of said Council.
THE DATE of this bond, in conformity with the ordi-
nance above mentioned, is MARCH 15, 1969.
THIS BOND and the series of which it is a part consti-
tute special obligations of the City of Lubbock, Texas, and are
payable solely from and equally secured by a first lien.on and
pledge of the gross revenues of the City's municipal airport.
THE CITY reserves the right to issue further and addi-
tional bond obligations in all things on a parity with the bonds
of this series and payable solely from and equally secured by a
pledge of said gross revenues, PROVIDED, HOWEVER, that any and
all such additional bonds may be so issued in accordance with
and subject to the covenants, limitations, condit~ and restric-
tions relating thereto which are set out and contained in the
ordinance authorizing this series of bonds, and to which ordi-
nance reference is hereby made for more complete and full parti-
culars.
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.
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 dbne precedent to and in the issuance of this bond to render
the same lawful and valid have been properly done, have happened
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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
limitation, and that provision has been made for the payment of
the principal of and interest on this bond and the series of
which it is a part by irrevocably pledging the gross revenues
of the municipal airport.
IN TESTIMONY YBEREOF, 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 facstmile 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, 1969. ··
Mayor, City of Lubbock, Texas
COUNTERSIGNED:
City Secretary, City of Lubbock,
Texas
SECTION 7: Coupon Form. The form of said interest cou-
pons shall be substantially as follows:
NO. ON THE FIFTEENTH DAY OF ,
19 --------
$ __ _
the CITY OF LUBBOCK, a municipal corporation of the State of Texas,
hereby promises to pay to bearer, out of funds specified in the
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bond to which this coupon is attached (without right to demand
payment out of any funds raised or to be raised by taxation), and
in lawful money of the United States of America, without exchange
or collection charges to the owner or holder, at the
------~F~I~R~S-T~NA~T~I~O~NA~L~C~I~TY--BWA~NK~1~N~e-w~Y~o~rk~·~N_e_w~Y_o_r_k~--------'
or, at the option of the holder, at the
____ __,;;C;.;;I;;,;;;T;,;;;;I;;;;;;;Z .... EN~S -NA=T...,I..,.O-.NA-...=L;....,;;;.BANK~........,o .... F;.....;;L..,.UB=B~O.-CK....,_, -L~u;;;;b;.;;b_,o_c_k._, _T~e.-x;;.;;.;a...,s.._ __ ,
the sum of
---------DOLLARS
(.,.$ ______ ), said sum being ----months' interest due that
day on "CITY OF LUBBOCK, TEXAS, AIRPORT REVENUE BOND, SERIES 1969 /'
dated March 15, 1969. Bond No. ----
City Secretary Mayor
SECTION 8: Form of Comptroller's Certificate. Substan-
tially the following shall be printed on the back of each bond:
OFFICE OF COMPTROLLER
STATE OF TEXAS
I
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I
REGISTER NO.
I HEREBY CERTIFY that there is on .file and of record in
my office a certificate of the Attorney General ofl the State of
Texas to the effect that this bond has been examined by htm 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 special obligation of the City
of Lubbock, Texas, payable from the revenues pledged to its payment
by and in the ordinance authorizing same, and said bond has this da
been registered by me.
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas,
-------·
Comptroller of Public Accounts of the
State of Texas
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SECTION 9: Definitions. For all purposes of this
ordinance, and in particular for clarity with respect to the
issuance of the bonds herein authorized and the pledge and appro-
priation of revenues therefor, the following definitions are pro-
vided:
...
(a) The term "additional bonds" means the additional
parity revenue bonds which the City reserves the right to
issue under Section 20 hereof.
(b) ·The term "airport" and the term ''municipal air-
port" shall be synonymous, and shall mean all properties,
real, personal or mixed which constitute a part of the exist-
ing municipal airport of the City of Lubbock, Texas, and any
and all other property hereafter acquired or operated by the
City for airport purposes, together with any and all addi-
tions or improvements thereto or changes therein made or auth-
orized by the City. The term shall include, without limita-
tion, all landing areas, runways, taxi-ways, ramps and apron
areas, improvements, all buildings located on airport proper-
ties, fixtures, ap-purtenances, ·services, air. navigation facil-
ities, utility systems, and other facilities located on land
·heretofore or hereafter ac~uired ·for ·airport purpose.
(c) The term "bonds" means the $2,500,000 revenue bonds
authorized by this ordinance.
(d) The term "bonds payable from the same source" shall
mean the bonds authorized by the provisions of this ordinance,
together with all additional bonds hereafter issued under the
provisions of Section 20 of this ordinance, as may be out-
standing at the time.
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(e) The term "Cityn shall mean the City of Lubbock,
Texas, a municipal corporation operating··under the pro-
visions of the Home Rule Amendment to the Constitution
of the State of Texas.
(f) The term "fiscal yearu shall mean the twelve-
·month per{od ending September 30th of each year.
(g) The term ngross revenues" means the total revenue
received by the Ci-ty from the ~wnership, control or opera-
tion of the airport or air navigation facilities, including
.the proceeds from the sale of all or any part of such air-
. .
port or facilities from whatever source derived, excluding
any rentals (except for ground rentals) from net rent leases
which may be executed in the future wherein the lease consid-
eration is pledged or otherwise utilized to finance the con-
struction of buildings or facilities for lessee-tenant of
the City, or acquisition of additional lands or facilities,
but only for such time and,to such extent in each case as
the rentals reserved in the lease and any extension-or
renewal thereof (other than ground rentals) are required to
be deposited in a separate interest and redemption fund or
other fund to provide and secure the performance of the City's
obligati~n to pay debt service requirements on the indebted-
ness created to finance the improvement which is the subject .. ,
of the leas·e. · Without limiting the generality of the fore-
going, unless otherwise restricted by the provisions of this
ordinance, the term "gross revenues" will include all of the
income from the ownership and operation of the municipal air-
port including landing fees and charges, ground rentals, space
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rental in buildings or renial ~f buildings located on
land heretofore or hereafter acquired for airport pur-
poses, fees for parking where the parking facility is not
on a public street or thoroughfare, charges of every
character m~de to concessionair~s, receipts of the utility
... systems se'rving the airport,, and all fees (if any) collec-
ted by the City on account of the oper{l.t;:ion of limousine
or conveyances to and from the airport.
(h) The tenn 11operating expenses" shall mean all
expenditures necessary for the efficiency, operation,
maintenance and utilization of .the airport, including
all salaries, labor, materials and repairs necessary to
render efficient and adequate airport service to the City
and its inhabitants, or such as might be necessary to meet
some physical condition or accident which would otherwise
impa~r the securit~ of bonds payable from the same source .
.
The term "operating expenses" shall not include any allow-
ance for depreciation or capital improvements to the muni-
cipal airpqrt.· A capital improvement (as used in the fore-
going sentence) shall mean (i) real property, or (ii) per-
sonal property which has an estimated life of more than
two years.
(i) The tenn "paying agent banks" shall mean the
FIRST NATIONAL CITY BANK, New York, New York and
the CITIZENS NATIONAL BANK 'OF LUBBOCK, Lubbock, Texas
SECTION 10: Pledge . All the gross revenues, with the
exception of those in excess of the amounts required to establis h
and maintain the funds as hereinafter provided, are hereby
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irrevocably pledged to the payment of the bonds and of the addi-
tional bonds, if issued, under the conditions and in the manner
specified in this ordinance (as well as interest thereon), and it
is hereby ordained that the bonds and additional bonds, if so
issued, and the interest thereon shall constitute a first lien
upon said gross revenues.
SECTION 11: Rates and Charges. The City covenants and
ag_rees with tl:).e holders of the bonds payable from the same source:
(a) That it will at all · times charge and collect for
the use of the a·irport rates and charges sufficient to pay (i)
the principal and interest on the bonds p·ayable from the same
source, as the same shall become due, (ii) the amount required to
establish and maintain the funds established for the security. and
payment of the said bonds, and ·(iii) an amount which, together
with the ad valorem tax, will pay all operating expenses of the
airport.
SECTION 12: Fund Designations. All revenues obtained
by the City from the owaership, control or operation of the air-
port, and the proceeds of the ad valorem tax levied for the payment
of a portion of the operating expenses, shall be kept separate from
all other funds ·of the City. To that end the following separate
funds or accounts are hereby created and established with the
depository bank (from time to time selected) of the City:
(a) The "City of Lubbock Airport Fund", hereinafter
called nAirport Fund", into which shall be deposited the gross
revenues.
(b) The uCity of Lubbock _Airport Tax Accountu, herein-
after called 11Tax Account" , into which shall be deposited all
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proceeds of the ad valorem tax levied by the provisions of this
ordinance.
(c) The "City of Lubbock Airport Revenue Bond Interest,
Sinking and Reserve Fund", hereinafter sometimes called "Interest
and Sinking Fund". Such fund shall be used to pay the principal
1')
of and interest on the bonds pa~able from the same source as the
same shall become due.
SECTION 13: Airport Fund. All gross revenues shall be
deposited as received into the Airport Fund, which account shall
be appropr.iated and emp~oyed in the order of precedence shown as
follows:
(1) To the payment of amounts required to be paid into
the Interest and. Sinking Fund (Section 15).
(2) To the curing of any deficiencies in the Interest
and Sinking Fund (Section 17).
(3) To the payment of operating expen~es as the same
shall become due, it being specifically provided that none of the
funds in the said account shall be utilized for such purpose until
all funds ·(e~cept the sum of $100) in the Tax Account have been
utilized and expended for such purpose.
SECTION 14: Airport Tax Account. In'addition to the
pledge of gross revenues to the payment of operating expenses and
as a supplement to the said pledge of revenues for such purpose,
the ad va lorem tax authorized by Section 8 of Chapter 114, Acts of
the 50th Legislature, Regular Session, 1947, (compiled as Article
46d-8, v.A.T.C.S.) is hereby pledged to the payment of the opera-
ting expenses~. The proceeds of such tax shall be utilized annually
to assure the efficient operation and maintenance of the municipal
airport.
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In -accordance with the provisions of Article 46d-8, and
Article 1269j-5.2, V.A.T.C.S., there shall be annually levied,
assessed and collected in due time, form and manner, a tax upon
all taxable property in said City sufficient (when added to the
gross revenues available for the purpose) to pay the operating
0
expenses as the same shall become due, and to pay such amount
there is hereby levied (out of the 5¢ tax available for the pur-
pose under the provisions of the aforesaid law) a sufficient tax
on each $100 valuation of taxable property in said City for the
current year, and the same shall be assessed, collected, deposi-
te~ in the fund herein established, and applied to the aforesaid
purpose during the time the bonds payable from the same source, or
interest _thereon, shall remain outstanding and unpaid; while said
bonds, or any of them or 'interest tJ:e reon, shall remain outstand-
ing and ·unpaid, a tax each year at a rate from year to year as will
be ample and sufficient (within the aforesaid 5¢ limit) to supple-
ment the gross revenues available for the payment of the operating
expenses (as shown in the annual budget for the ensuing fiscal
year) shall be and is hereby lev~ed for each year respectively,
and said tax shall in each of said years be assessed, collected,
deposited in the fund herein established and applied to the afore-
S?id purpose and none other.
SECTION 15: Interest, Sinking and Reserve Fund. The
gross revenues of the airport are hereby irrevocably pledged to-the
Interest and Sinking Fund in amounts adequate to pay debt service
•. requirements on the bonds payable from ~he same source and to pro-
vide for the security of such bonds as in this ordinance provided.
In order to initially establish said fund, the City shall
make the deposits herein specified and required (including those
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--=-=---=::----fl----..... _-_------· -
"'quircd for the Reserve portion of said 1-'l.lnd), it being the in ten-
ion of the City that the Interest and Sinking Fund (including the
eserve portion thereof) shall always be in excess of the pro-rata
amount then required to be on deposit therein for the payment of
debt service requirements for the then current fiscal year, and in
addition, the s~ of $200,000 in cash and book value of investment
securities. That the Reserve portion of the fund shall be used
to meet the debt service requirements, if need be, of bonds payable
from the same source.
Beginning on or before the 1st day of April, 1969, and on
or before the 1st day of each month thereafter, while the bonds or
interest thereon are outstanding and unpaid, the City shall deposit
in the Interest and Sinking Fund an amount of money not less than:
(1) 1/6 of the next semi-annual installment of interest
to became due on the bonds payable from the same source, and '
(2) 1/12 of the next annual principal maturity of the
bonds payable from the same source, and
(3) Such amount as may be required to replenish or main-
tain the Reserve portion of said fund at $200,000 in cash and book
value of investment securities.
Upon the issuance and delivery of the bonds, the City
shall deposit in the Interest and Sinking Fund the amount received
from the purchasers thereof as accrued interest to date of delivery.
Any bond proceeds not needed to accomplish the purpose for which
the bonds are issued shall be deposited in Interest and Sinking
Fund. Such deposit shall reduce the amount which would otherwise
be required to be deposited in said Fund. Upon the delivery of the
bonds, the City (from funds available therefor) shall deposit the
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I I sum of $200,000 in the Reserve p'or~ion of said Fund.
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SECTION 16: Investment of Interest and Sinking Fund:
Money in the Interest and Sinking Fund may be, at the option of
the City, invested or reinvested from time to time in direct
obligations of, or obligations the principal and interest of which
are guaranteed by the United States of America, or invested in
p
direct obligations of or participation certificates guaranteed _
by the Federal Intermediate Credit Banks, Federal Land Banks,
Federal National Mortgage Association, Federal Home Loan Banks,
~anks for .Cooperatives,.and in certificates of deposit or time
deposit of any bank or trust company, the debts of which are fully
secured by a pledge of securities of any of the kind hereinabove
. .
specified. Sucl1 investments shall be· promptly liquidated and the
!proceeds thereof applied to the making of payments required to be
made from the Fund.
1 The Reserve portion of the Fund may be. invested in obli-
,
1 gations or s.ecurities which mature in not more than 10 years from
the date of making the investment, while the remainder of the
Interest and Sinking Fund investments shall mature on such date
or dates as the City may determine to be in the best interest of the 1
City, but in no event shall such obligations or securities mature
at a date ~ubsequent to the time money in said Fund is scheduled
to be applied for the payment of principal or interest. Income or
!II increment to the Fund by reason of the investment thereof shall re-
.main a part of the Fund, but the amount of the monthly deposits
I
l with the rund may be adjusted to take into account the amount on
I !deposit therein. ' I
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SECTION 17: Deficiencies in Funds. If in any month
the City shall for any reason fail to _pay into the Interest and
Sinking Fund the full amounts above ·stipulated, amounts equivalent
or months and such payments oshall be in addition to the amounts
hereinabove provided to be otherwise paid into said Fund ~uring
such month or months.
SECTION 18: Airport Fund. Within thirty (30) days of
the end of each fiscal year, after making the transfers required
by the provisions of Sections 1~ and 17, the City shall put aside
an amount of money equal to not less than the maintenance and opera-
; ting expenses for two _calendar months (as shown by the budget for
the ensuing fiscal year), which shall be retained in the Airport
following purposes:
.. '
(a) The payment of any unusual expenses of the airport
or for deposit into the Interest and Sinking Fund when there is a
deficiency therein.
(b) Capital improvements to the airport.
(c) The purchase or redemption of bonds payable from the
same source prior to their scheduled maturity.
(d) Payment of principal and interest, either or both,
on any gene~al obligation incurred by the City for airport purposes.
(e) The payment of junior lien bonds.
SECTION 19: Security o£ Funds. All special Funds for
which this ordinance makes provision (except any portions thereof
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as may be at any time properly lnvested) shall be secured in the
manner and to the fullest extent required by the laws of Texas for
the security of public funds, and such Funds shall be used only
(')
for the purposes permitted by this ordinance.
SECTION 20: Additional Bonds. The City reserves the
right to issue further revenue bonds payable from the same source
as the bonds (upon .the terms and conditions hereafter appearing),
and such additional bonds shall occupy a position of parity with
the bonds and be equally and ratably secured by the same pledged
revenues, so no one bond shall have priority of lien over any other
bond, either of this series or of any series of additional bonds.
No additional parity bonds shall be issued unless and until the
following conditions have been met: . .
(a) The City is not in default as to any covenant,
condition or obligation prescribed by this ordinance.
(b) The Interest and Sinking Fund contains the amount
of money then required to be on deposit therein.
(c) That the City has obtained from a Certified Public
Accountant a written report to the effect that the gross revenues
of the airport for the fiscal year preceding the adoption of the
ordinance authorizing the additional bonds are (i) equal to not
less than one and one-fourth (1~1/4) times the maximum annual
debt service requirements of all bonds payable from the same
source (calculated on· a fiscal year basis), after giving effect
.
to the issuance of the proposed additional parity bonds, and (ii)
equal to at least two times the average annual debt service require-
ment of bonds payable from the same source (calculated on a fiscal
year basis) during each of ·the years said bonds are scheduled to
be outstanding.
--·--------·--
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(d) The additional bonds are made to mature on March
5 or September 15, or both, in each of the years in which they are
cheduled to mature.
(e) That a qualified firm of Airport Consultants cer-
tifies in writing its opinion as to the gross revenues of the air-
ort throughout the life of the bonds to be payable from the same
source (after giving effect to the issuance of the proposed addi-
tional bonds), and that in the opinion of the Consultant, the
average gross revenues of the airport (calculated on a fiscal year
asis) will be at least two times the average annual principal and
interest requirements (calculated on a fiscal year basis) on such
onds payable from the same source.
(~) The ordinance authorizing the issuance of the addi-
tional bonds provides that the amount to be accumulated and main-
tained in the Reserve portion of the Interest and Sinking Fund
shall be in an amount not less than the average annual principal
and interest requirements of the bonds payable from the same source
after giving effect to the issuance of the proposed additional
bonds and such ordinance provides that any additional amount re-
quired to be accumulated shall be so accumulated within not more
than five (5) years and one (1) month from the ·date of the passage
of the ordinance authorizing the issuance of the proposed addi-
tional bonds.
Bonds payable from the same source may be refunded
upon such terms and conditions as the Council may determine would
be to the best interest of the City and its inhabitants, shall be
considered as additional bonds, and the certifications and reports
required by the provisions of this Section 20 for the issuance
thereof shall give effect to the retirement of the bonds being re-
funded.
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SECTION 21 : Junior .Li en Bonds . The City reserves the
right to issue bonds of inferior lien under lawfur authority now or
!hereafter existing upon such terms and conditions as the Council
lfeels will be to the best interest of the City ~nd its inhabitants.
SECTION 22: Operation of Airport. The City covenants and
¢ .
agre es to maintain the airport in good condition and to operate the
same on the basis of a fiscal year in an efficient manner 'and at
reasonable cost.
SECTION 23: Insurance. So long as any of the bonds pay-
I able fr~ the same source are outstanding the City agrees to main-
tai n for the benefit of the holder or holders thereof, comprehensive
insurance on the facilities of the airport fully adequate in accord-
ance with sound business practices. All moneys received from losses
nder such insurance, other than public liability policies, are here-
y pledged as security for the said bonds, until and unless such pro-
eeds are paid out in making good the loss or damage in respect of
hich such proceeds are received, either by replacing the property
estroyed or repairing the property damaged, and adequate· provision
or~aking good such loss or damage, made within ninety (90) days
fter the date of the loss. The payment of premiums for all in-
urance policies required under the provisions of this section shall
e considered maintenance and ~peration expense.
SECTION 24: .Records and Accounts. The City hereby cove-
agrees that as long as any of the bonds payable from the
arne source or any interest thereon remain outstanding and unpaid,
keep and maintain a proper and complete system of books,
and accounts pertaining to the operation of the airport,
eparate and apart from all other records and accounts in which com-
lete and correct entries shall be made of all transactions re~ating
o said airport and that the bolder or holders of any such bonds or
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I
any duly authorized agent or agents of such holders, shall have
the right ~t all reasonable times to inspect such books, records
and accounts and data relating thereto, and to inspect the airport
and all properties comprising ~he same. The ~irector of Finance is
hereby instructed and directed to do any and all ·things necessary
or convenient in reference to keeping and maintaining such books,
' records and accounts and to make the moneys available for 'the pay-
the bonds herein authorized as herein provided. The City
agr~es that within ninety (90) days following the close of
each fiscal year, it will cause an audit of such books and accounts
to be made (as a part of the annual audit of the City) by an inde-
I pendent firm of Certified Public Accountants showing the receipts
I
·'and disbursements for account of the airport for that fiscal year.
Each such audit shall, in addition to whatever matter may be thought
proper by the Accountant, particularly include the following: ·,
(a) A detailed statement of the income and expenditures
for account of the airport for such fiscal year.
(b) A balance sheet as of the end of the 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 changes or improvements in the operation,
records or accounts of the airport.
I . I . . (d) A li~t o~ insurance pol~cies in force at the end of the
fJ.scal . year on the aJ.rport .property, setting ou~ as to each policy
the amount thereof, the risk covered, the name of the insurer, and
the policy's expiration date.
(e) A statement of the securities provided as protection
for the money in the Interest and Sinking Fund throughout the
fiscal year; a list of the securities purchased for the account
of the Fund and a summary of how the Fund has been invested, and a
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statement of the manner in which money in the Airport Fund has been
secured in such fiscal year.
(f) A list of all contracts, leases or other agreements with
all persons, firms or cor~rations which conduct commercial enter-
prises on said airport or in any of its facilities, and the nature
term and status of each.
Copies of the aforementioned annual audit shall be promptly
furnished the original purchasers of the bonds, any subsequent
holder at his request, and to the Executive Director of the Muni-
cipal Advisory Council of Texas, Austin, Texas. Any bondholder
shall have the right to discuss with the Accountant making the
annual audit the contents thereof and to ask the Director of
Finance for such additional information as may be requested.
At the close of each six month period, the Director of
Finance is hereby directed to furnish a copy of an operating and
income statement in reasonable detail covering such period to any
bondholder who, within thirty days of the close of such period,
requests the same in writing.
SECTION 25: Further Covenants. The City further covenants
and agrees by and through this ordinance as follows:
(a) That the bonds shall be special obligations of the City,
and the holder thereof shall never have the right to demand payment
out of any funds raised, or to be raised, by taxation.
(b) · That it has the lawful power to pledge the revenues sup-
porting the bonds, and has lawfully exercised said power under the
Constitution and laws of the State of Texas, including power exist-
ing under Articles 1269j-5, 1269j-5.2 and 46d-8, V.A.T.C.S., and
Senate Bill 20, Acts of the 6lst Legislature, Regular Session, 1969,
and that the bonds payable from the same source· shall be ratably
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..
secured in such manner that no one bond shall have preference
over a~y other bond.
(c) ·That other than for the payment of the bonds, the
rents, revenues and income of said airport have not been in any
a manner pledged to the ~ayment of any debt or obligation of the
City and/or said airport, and that said airport is free and clear
' of all encumbrances whatsoever.
(d) That nothing in this ordinance shall require the
City to make any expenditures except from money in the Airport
Fund, but nothing herein shall prohibit the City from doing so.
(e) That, except under the conditions set forth in
Section 20 of this ordinance, the City will not suffer any indebt-
edness on a parity with or superior to the bonds payable from the
same source to accrue against said airport, and that if the airport
shall become liable for any other indebtedness, the City Council
will fix and maintain rates and collect charges for the services
afforded by the airport sufficient to discharge any such indebted-
ness.
(f) That while any of the ·bonds payable from the same
source, or interest thereon, are o~tstanding and unpaid, the City
will continue tq o~erate and maintain ·the airport ~ithin the amount
of funds pledged to the payment of such expenses, and will not
cause or suffer such curtailment of the general use of the airport
as will interfere with the prompt performance of all of the City's
. I obligations and covenants; and that the gross revenues from any
I investment in other airport properties will immediately be sub-
11
11 jected to the pledge securing the bonds payable from the same
II source.
II
I
I
I
·I
(g) That it will duly and .Punctually pay or cause to
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be paid out of the pledged revenues the principal of and interest
on all bonds payable from the revenues of the airport, and that
it will faithfully do and perform, and at all times fully observe
any and all covenants, undertakings and provisions contained here-
in or in any of said ~onds.
(h) That the Cit¥ will duly observe and comply with
all valid requirements of all Governmental authorities relative
to the operation of the airport, and will maintain and operate
with prudence its general airport facilities.
(i) That while any bonds payable from the same source
o.~ interest t~ereon are outstanding and unpaid, the City will not
supply space, services or privileges at the airport without making ...
commensu~ate charges therefor, except to the extent required by
applicable law, provided the City may supply such space, privileges
and services to the Federal Government or its agencies.
(j) That the City will maint.ain airport zoning subs tan-
tially as is provided in the present zoning ordinance unless and
until some lesser airport zoning protection might become acceptable
under any applicable recommended standards of the Federal Aviation
Agency.
(k) That no contract under which the City will grant
privileges or provide services or space in the airport terminal
buildings or airport terminal areas (except (i) contracts which
provide for a fixe~ minimum rental o~ a percentage of the gross
income, whichever is larger, or (ii) contracts with the United
States Government or one of its agencies) shall be for a term ex-
ceeding five (5) years unless (1) they be negotiated on a net rent
basis, or (2) they contain provisions for the renegotiation of the
amount of rental payment without limit at intervals of not more
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.than five years beginning with the date of any such contract. No
contract which p,rovides for a fixed minimmn rental or a percen-. .
t.~ge of the gross incame, whichever is larger,· shall be for a term
exceeding ten (10) years, unless it contains provision for the re-...
negotiation of the'fixed minimum rental or of the 'percentage of ¢
the gross income without limit at the end of the initial ten years,
and at the end of each five ye~r period thereafter.
(1) That the City will not dispose of any of the per-
sonal property constituting the· airport unless and until such
property has been declared by the City to be surplus and no longer
needed for the proper operation of the airport. The proceeds from
the sale of such property will be deposited in the Airport Fund.
(m) (1) That competent personnel for the airport will
be employed and administer it in·accordance with sound business
principles; and (2) that the City will keep the facilities in good
condition, and will make all needed repairs, renewals, replace-
ments, extensions and improvements, including non-recurring and
periodic items of maintenance.
(n) That any amounts received as awards as a result of
the taking of all or any part of the airport by the lawful exer-
cise of eminent domain, if and to the extent that such right can
be exercised against such proper-ty of the City, will be placed in
the Airport Fund.
· SECTION 26: Remedies in Event of De£ault. IN ADDITION
to all the· rights and remedies provided by the laws of the State
of Texas, the City covenants and agrees particularly that in the
event the City (a) defaults in the payment of principal or interest
on any of the bonds when due (b) fails to make.the payments required
-26 -
I by Sections 15 and 17 of this ordinance; or (c) defaults in the
·I
11 observance or performance of any other of the covenants, con-
I I
ditions 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
I 0 . 1 entitled to a writ of mandamus issued by a court of proper juris-
1 I I I
diction compelling and requiring the City Council and other
., ~fficers of the City to. observe and perform any covenant, obliga-
i
I
I
I I
tion or condition 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 construed to be a waiver of any such default of acqui-
escence 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 cumula-
tive of all other existing remedies and the specification of such
shall not be deemed to be exclusive.
..
SECTION 27: Recognition of the Contractual Obligation
with United States Government. The City particularly represents
that a portion of the property constituting the airport (as herein
defined) was acquired from the United. States of America through
instruments dated January 4, 1949, and May 16, 1949, both of which
are entitled 11Instrument of Transfer", in which instruments the
Un~ted States of America, among other things, retained the right
and power during a national emergency to take exclusive or non-
exclusiv~ possession of the airport; that by instrument dated
April 2, 1958, entitled "Release", such right to possession of
the property during the time of national emerge~cy was removed
from the agreements. The City agrees to supply, without
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. · I .
charge, certified copies of the aforesaid instruments to any
holder of a bond or bonds that requests the same in writing.
The City further recognizes that the ·~Release" dated
April 2, 1958, specifically provided:
0 "That all revenue and proceeds derived
from the rental, lease or other use of the
said airport property 'by the City of
Lubbock will be devoted exclusively to the
operation, maintenance, improvement or develop-
ment of the Lubbock Municipal Airport."
The City particularly covenants that·all revenues and
proceeds (gross revenues as defined herein) of the airport will be
-used in accordance with the provisions of the said "Release" quoted
above, and that such revenues and proceeds will be applied in the
time and manner as specified in this ordinance·, and that such
revenues and proceeds will be used f~r no other purpose.
SECTION 28: Recognition of the provisions of Article 9,
Section 12 of the Constitution of Texas: The City particularly
1 recognizes the provisions of Article 9, Section 12 of the Consti-
tution of Texas which makes provision for the creation of an Air-
port Authority, and nothing herein shall be construed as prohibit-
ing the City (subject to the provisions of Section 27 and the con-
j tractual obligations therein mentioned) from en~ering into any
j agreement or arrangement contemplated by the aforesaid Constitutiona
!1 provision, provided the Airport Authority shall assume and discharge
all of the obligations of the City under the provisions of this
ordinance (including the prov~sions for ~he payment and security
of the bonds) and the contractual obligations of the City (mentioned
in.Section 27) as they exist at the time.
SECTION 29: Ordinance to Constitute Contract. That
the provisions of this ordinance shall constitute a contract be-
tween the City and the holder or holders from time to time of the
28
bonds 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 30: Bonds as Negotiable Instruments. Each of
the bonds shall be deemed and construed to be a "Security", and as
such a negotiable instrument, within the meaning of Article 8 of
the Uniform Commercial Code.
SECTION 31: Confirmation of Sale. That the sale of
at the price of par plus accrued interest to date of delivery plus
a premium of ~587.50
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 32: Printed. Legal Opinion on Bonds. The pur-
chasers' obligation to accept delivery of the bonds herein autho-
rized is subject to their being furnished a final opinion of
Messrs. Dumas, Huguenin and Boothman, Attorneys, Dallas, Texas,
approving such bonds as to their validity, said opinion to be
dated and d~ivered 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 certifi-
cate pertaining thereto executed by facs~ile signature of the
City Secretary is hereby approved and authorized •
... 29 ...
SECTION 33: Mayor to Have Charge of Records and Bonds.
That the Mayor of the City shall be and he is hereby authorized
to take and have charge of all necessary orders and records pen-
ding investigation by the Attorney General of the State of Texas,
and shall take and have charge and control of the bonds pending
¢
======~--lt---t=h=e=i=r approval~y the Attorney General and their registration by
the Comptroller of Public Accounts.
SECTION 34: Emergency. That the public importance of
this measure and the fact that it is to the best interest of the
City to construct the improvements to said airport at the earliest
possible date, constitute and create an emergency and an urgent
public necessity for the immediate preservation of the public
peace, property, health and safety of the citizens of the City,
requiring that this ordinance be passed and take effect as an
emergency measure, to be in full force and effect immediately
from and after its passage, and it is so ordained.
PASSED AND APPROVED, this the 27th day of Ma~ch,
1969.
ATTEST:
City
APPROVED AS TO FORM:
(City Seal)
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