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HomeMy WebLinkAboutOrdinance - 8949-1986 - Ordinance 8949 Authorizing Issuance $4,200,000 Issuance Of Certificates - 07/18/1986•• ...... .. First Reading July 24, 1986 Agenda Item #17 Second Reading July 25, 1986 Agenda Item #3 Ordinance #8949 AN ORDINANCE .authorizing the issuance of $4,200,000 "CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1986"; providing for the payment of said certifi- cates of obligation by the levy of an ad valorem tax upon all taxable property within the City and a pledge of the net revenues derived from the operation of the City's Sewer System; providing the terms and conditions of such certificates of obliga- tion and resolving other matters incident and relating to the issuance, payment, and security, of said certificates of obliga- tion; and providing an effective date. WHEREAS, notice of the City Council's intention to issue certificates of obligation in the maximum .pr'incipal amount of $4,200,000 for the purpose of paying contractual obligations to be incurred for ( i) the construction of iinprovements to the sanitary land fill site, and (ii) the payment of professional services, has been duly published in Lubbock Avalanche Journal, a newspaper hereby found and determined to be of general circulation in City of Lubbock, Texas, on June 29, 1986, and July 6, 1986, the date of the first publication of such notice being not less than fourteen (14) days prior to the tentative date stated therein for the passage of the ordinance authoriz- ing the issuance of such certificates of obligation; and WHEREAS, no petition protesting the issuance of the certificates of obligation described in the aforesaid notice, signed by at least 5% of the qualified electors of the City, has been presented to or filed with the City Secretary on or prior to the date of the passage of this Ordinance; and WHEREAS, the City Council hereby finds and determines that the certificates of obligation described in such notice should be authorized at this time; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: SECTION 1: Authorization, Designation, Principaf Amount, Purpose. Certificates of obligation of the City shall be and are hereby authorized to be issued in the aggregate principal amount of $4,200,000, to be designated and bear the title "CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1986" (hereinafter referred to as the "Certificates"), for the .. purpose of paying contractual obligations incurred with respect to (i) the purchase of (a) land for authorized needs and purposes, to wit: a sewer farm, and (b) materials, supplies, and equipment, in connection therewith, and (ii) professional services, pursuant to authority conferred by and in conformity with the Constitution and laws of the State of Texas, including Article 2368a.1, V.A.T.C.S., as amended. SECTION 2: Fully Registered Obligations -Authorized Denominations -Stated Maturities -Interest Rates -Date. The Certificates are issuable in fully registered form only; shall be dated July 15, 1986 (the "Certificate Date"), and shall be in denominations of $5,000 or any integral multiple thereof (within a Stated Maturity) and the Certificates shall become due and payable on February 15 in each of the years and in principal amounts (the "Stated Maturities") and bear interest on the unpaid principal amount from the Certificate Date in accordance.with the following schedule: Year of Stated Maturity 1987 1988 1989 1990 1991 Principal Amount $725,000 775,000 850,000 900,000 950,000 The Certificates shall bear interest at the per annum rates to be established by resolution to be adopted by the City Council of the City of Lubbock, Texas, at the time of the sale of the Certificates (but in no event shall the net effective interest rate exceed 15\ per annum) (calculated on the basis of a 360-day year of twelve 30-day months), and interest thereon shall be payable on February 15 and August 15 of each year, commencing February 15, 1987. SECTION 3: Payment of Certificates -Paying Agent/ Registrar. The principal of, premium, if any, and interest on the Certificates shall be payable, without exchange or collection charges to the registered owner thereof, in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. The selection and appointment of Texas Commerce Bank, National Association, Lubbock, Texas, to serve as Paying Agent/ Registrar for the Certificates is hereby approved and confirm- ed, and the City agrees and covenants to cause to be kept and maintained at the principal office of the Paying Agent/ -2-0 l I J N . ·~ Registrar books and records {the "Security Register") for the registration, payment, and transfer of the Certificates, all as provided herein, in accordance with the terms and provisions of a "Paying Agent/ Registrar Agreement" and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The City covenants to maintain and provide a Paying Agent/Registrar at all times until the Certificates are paid, and any successor Paying Agent/Registrar shall be a bank, trust company, financial institution, or other entity duly qualified and legally authorized to act· as and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Certificates, the City agrees to promptly cause a written notice thereof to be sent to each registered owner of the Certificates by United States mai 1, first-class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Both principal of, premium, if any, and interest on the Certificates, due and payable by reason of maturity or otherwise, shall be payable only to the registered owners of the Certificates {hereinafter referred to as the "Holder" or "Holders") appearing on the Security Register and, to the extent permitted by law, neither the City nor the Paying Agent/ Registrar, or any agent of either, shall be affected by notice to the contrary. Principal of and premium, if any, on the Certificates, shall be payable only upon presentation and surrender of the Certificates to the Paying Agent/Registrar at its principal office. Interest on the Certificates shall be paid to the Holder whose name appears in the Security Register at the close of business on the Record Date (the last business day of the month next preceding each interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent by United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. In the event of a non-payment of interest on a scheduled payment date, and for thirty {30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five {5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the books of the Paying Agent/Registrar at the close of business on the last business day next preceding the date of mailing of such notice. -3- 0 3 1 3 N .. SECTION 4: No Optional Redemption. The Certificates shall not be subject .to redemption prior to maturity. SECTION 5: Registration Transfer Exchange of Certificates -Predecessor Certificates. A Security Register relating to the registration, payment, and transfer or exchange of the Certificates shall at all times be kept and maintained by the City at the principal office of the Paying Agent/ Registrar, and the Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the na·':le and address of each registered owner of the Certificates ssued ·under and pursuant to the provisions of this Ordinance. Any Certificate may, in accordance with its terms and the terms hereof, be transferred or exchanged for Certificates of other authorized denominations upon the Security Register by the Holder, in person or by his duly authorized agent, upon surrender of such Certificate to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender for transfer of any Certificate at the principal office of the Paying Agent/Registrar, the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Certifi- cates 1 executed on behalf of I and furnished by, the City I of authorized denominations and having the same Stated Maturity and of a like aggregate principal amount as the Certificate or Certificates surrendered for transfer. At the option of the Holder, Certificates may be exchanged for other Certificates of authorized denominations and having the same Stated Maturity 1 bearing the same rate of interest, and of like aggregate principal amount as the Certificates surrendered for exchange upon surrender of the Certificates to be exchanged at the principal office of the Paying Agent/Registrar. Whenever any Certificates are so surrendered for exchange, the Paying Agent/Registrar shall register and deliver new Certificates, executed on behalf of 1 and furnished by the City, to the Holder requesting the exchange. All Certificates issued upon any transfer or exchange of Certificates shall be delivered at the principal office of the Paying Agent/Registrar, or sent by United States mail, first class postage prepaid, to the Holder and, upon the delivery thereof, the same shall be valid obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Certificates surrendered in such transfer or exchange. -4-0 l I l N . . All transfers or exchanges of Certificates pursuant to this Section shall b~ made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Certificates cancelled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be "Predecessor Certificates," evidencing all or a portion, as the case may be, of the same obligation to pay evidenced by the new Certificate or Certificates registered and delivered in the exchange or transfer therefor. Additionally, the term "Predecessor Certificates" shall include any Certificate registered and delivered pursuant to Section 24 hereof in lieu of a mutilated, lost, destroyed, or stolen Certificate which shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Certificate. SECTION 6: Execution -Registration. The Certificates shall be executed on behalf of the City by the Mayor under its seal reproduced or impressed thereon and countersigned by the City Secretary. The signature of said officers on the Certificates may be manual or facsimile. Certificates bearing the manual or facsimile signatures of said individuals who are or were the proper officers of the City on the Certificate Date shall be deemed to be duly executed on behalf of the City, notwithstanding that such individuals or any of them shall cease to hold such offices prior to the delivery of the Certificates to the initial purchaser(s), and with respect to Certificates delivered in subsequent exchanges and transfers, all as authorized and provided in the Bond Procedures Act of 1981, as amended. No Certificate shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Certificate either a certificate of registration substantially as set forth in the form of the Initial Certificate provided in Section 8C, manually executed by the Comptroller of Public Accounts of the State of Texas or his duly authorized agent, or a certificate of registration substantially as set forth in the form of the definitive Certificates provided in Section 80, manually executed by an authorized officer, employee, or representative of the Paying Agent/Registrar, and either such certificate upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has been duly certified, registered, and delivered. -5-0 3 I J N . ; .. SECTION 7: Initial Certificate. The Certificates herein authorized shp.ll be initially issued as a single fully registered certificate in the total principal amount of $4,200,000 with principal installments to become due and payable as provided in Section 2 hereof and numbered T-1 or alternatively as one certificate for each maturity of this series, numbered consecutively T-1 and upward (hereinafter called the "Initial Certificate") as determined by the officials executing such Initial Certificate and, in either case, the Initial Certificate shall be registered in the name of the initial purchaser(s) or the designee thereof. The Initial Certificate shall be the Certificate submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas, and delivered to the initial purchaser(s). Any time after the delivery of the Initial Certificate, the Paying Agent/Regi- strar, pursuant to written instructions from the initial purchaser(s), or the designee thereof, shall cancel the Initial Certificate delivered hereunder and exchange therefor defini- tive Certificates of authorized denominations, Stated Maturi- ties, principal amounts, and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial purchaser(s), or the designee thereof, and such other information and documentation as the Paying Agent/ Registrar may reasonably require. SECTION 8: Forms. A. Forms Generally. The Certificates, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Certificate of Registration of the Paying Agent/Registrar, and the form of Assignment to be printed on the Certificates, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identifica- tion (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including any reproduction of an op1n1on of counsel) thereon as may, consistently herewith, be established by the City or be determined by the officers executing such Certificates as evidenced by their execution thereof. Any portion of the text of any Certificates may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Certificate. -6-0 J I J N . ; .. The definitive Certificates shall be printed, litho- graphed, or engraved. or produced in any other similar manner, all as determined by the officers executing such Certificates as evidenced by their execution thereof, but the Initial Certificate submitted to the Attorney General of Texas may be typewritten or photocopied or otherwise reproduced. B. Initial Certificate. If a single Initial Certificate is delivered, as permitted by Section 7, the form shall be as set forth in Section 8C. If, in the alternative, multiple Initial Certifi- cates are delivered, also as permitted by Section 7, the form of the multiple Initial Certificates shall be the form of the definitive certificates set forth in Section 8D which shall be modified by utilizing the appropriate certificate numbers as set forth in Section 7, deleting the reference to "CUSIP NO:," and by utilizing the Registration Certificate of the Comptrol- ler of Public Accounts in place of the Registration Certificate of Paying Agent/Registrar that appears in Section 8D. c. REGISTERED NO. T-1 The Form of Initial Certificate. UNITED STATES OF AMERICA STATE OF TEXAS CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATE OF OBLIGATION SERIES 1986 Certificate Date: Interest Rate: Stated Maturity: July 15, 1986 As shown below As shown below Registered Owner: REGISTERED $4,200,000 Principal Amount: Four Million Two Hundred Thousand Dollars The City of Lubbock (hereinafter referred to as the "City"), a body corporate and municipal corporation in the County of Lubbock, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay, -without right of prior redemption, to the order of the the Registered Owner named above, or the registered assigns thereof, on the 15th day of February, in each of the years and in principal amounts and bearing interest at per annum rates in accordance with the following schedule: -7- 0 3 1 J N . - Year of Stated Maturity 1987 1988 1989 1990 1991 Principal Amount $725,000 775,000 850,000 900,000 950,000 Interest Rate % -----.,-% ----% ----% ----% ---- and to pay interest on the unpaid principal amounts hereof from the Certificate Date at the per annum rate(s) of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on Feb- ruary 15 and August 15 of each year, commencing February 15, 1987. Principal of this Certificate shall be payable to the registered owner hereof, upon presentation and surrender, at the principal office of Texas Commerce Bank, National Associa- tion, Lubbock, Texas (the "Paying Agent/ Registrar"). Interest shall be payable to the registered owner of this Certificate whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date hereof. All payments of principal of, premium, if any, and interest on this Certificate shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts and interest shall be paid by the Paying Agent/Registrar by check sent by United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. This Certificate is issued in the aggregate principal amount of $4,200,000 (herein referred to as the "Certificates") for the purpose of paying contractual obligations incurred with respect to ( i) the purchase of (a) land for authorized needs and purposes, to wit: a sewer farm, and (b) materials, supplies, and equipment, in connection therewith, and (ii) professional services, under and in strict conformity with the Constitution and laws of the State of Texas, particularly Article 2368a.1, V.A.T.C.S. and pursuant to an ordinance adopted by the governing body of the City (hereinafter referred to as the "Ordinance"). This Certificate is payable from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all taxable property in the City and are additionally payable from and secured by a lien on and pledge of the Net -8-0 l l l N Revenues (as defined in the Ordinance) of the City's Sewer System (the "System".), such lien and pledge being subordinate to the lien and pledge of the Net Revenues securing the payment of the Prior Lien Obligations (identified and defined in the Ordinance). In the Ordinance, the City reserves and retains the right to issue additional certificates equally and ratably secured with the Certificates by a parity lien on and pledge of the Net Revenues. Reference is hereby made to the Ordinance, _a copy of which is on file in the principal office of the Paying Agent/ Registrar, and to all of the provisions of which the registered owner by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied for the payment of the Certificate; the properties constituting the System; the Net Revenues pledged to the payment of the principal of and interest on this Certificate; the nature, extent, and manner of enforcement of the pledge; the terms and conditions relating to the transfer or exchange of this Certificate; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the registered owners; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and prov1s1ons upon which the tax levy and the liens, pledges, charges, and covenants made therein may be discharged at or prior to the maturity of this Certificate, and this Certificate deemed to be no longer Outstanding thereunder; and for the other terms and provisions thereof. Capitalized terms used herein have the meanings assigned in the Ordinance. This Certificate, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register only upon its presentation and surrender at the principal office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Certificates of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, may treat the registered owner hereof whose name appears on the Security Register (i) on the Record Date as the owner entitled to the payment of the interest hereon, (ii) on the date of surrender of this Certificate as the owner entitled to the payment of the principal hereof at its Stated Maturity, and (iii) on any other date as the owner for all other purposes,_ and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of a non-payment of interest on a -9-0 l 1 l N .. scheduled payment date, and for thirty (30) days thereafter, a new record date for.. such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each registered owner appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, recited, represented, and covenanted that the City is a duly organized and legally existing municipal corporation under and by virtue of the Constitution and laws of the State of Texas; that the issuance of the Certificates is duly authorized by law; that all acts, conditions, and things required to exist and be done precedent to and in the issuance of the Certificates to render the same lawful and valid obligations of the City have been properly done, have happened, and have been performed in regular and due time, form, and manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that the Certificates do not exceed any constitutional or statutory limitation; and that due prov1s1on has been made for the payment of the principal of and interest on the Certificates by the levy of an ad valorem tax and a pledge of and lien on the Net Revenues of the System as aforestated. In case any provision in this Certificate or any application thereof shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the rema1n1ng prov1s1ons and applications shall not in any way be affected or impaired thereby. The terms and prov1s1ons of this Certificate and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the City Council of the City has caused this Certificate to be duly executed under the official seal of the City as of the Certificate Date. CITY OF LUBBOCK, TEXAS COUNTERSIGNED: Mayor ~J~ cnyecretary (CITY SEAL) -10- :-;·~ . 0 3 1 3 N REGISTRATION CERTIFICATE OF COMP.TROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS THE STATE OF TEXAS § § § § § REGISTER NO. I HEREBY CERTIFY that this Certificate has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this (SEAL) Comptroller of Public Accounts of the State of Texas ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee:) .•••...•.....•.....•••••••.••..•. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . ... . . . . . . . . . . . . . (Social Security or other identifying number: .•.....••.•...... . • • • • • . . . • . • • . . • . . . • . . • ) the within Certificate of Obligation and all rights thereunder, and hereby irrevocably constitutes and appoints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . attorney to transfer the within Certificate of Obligation on the books kept for registration thereof, with full power of substitution in the premises. DATED: Signature guaranteed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NOTICE: The signature on this assignment must correspond with the name of the registered owner as it appears on the face the within Certificate of Obligation in every particular. D. Form of Definitive Certificate. -11- 0 J l J N REGISTERED NO. . . UNITED STATES OF AMERICA STATE OF TEXAS CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATE OF OBLIGATION SERIES 1986 Certificate Date: Interest Rate: Stated Maturity July 15, 1986 Registered Owner: Principal Amount: REGISTERED $ CUSIP NO: Dollars The City of Lubbock (hereinafter referred to as the "City"), a body corporate and municipal corporation in the County of Lubbock, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the register- ed assigns thereof, on the Stated Maturity date specified above, without right of prior redemption, the Principal Amount stated .above and to pay interest on the unpaid Principal Amount stated above from the Certificate Date at the per annum rate of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February 15 and August 15 of each year, commencing February 15, 1987. Principal of this Certificate shall be payable to the registered owner hereof upon presentation and surrender at the principal office of the Paying Agent/Registrar executing the registration certificate appearing hereon, or its successor. Interest shall be payable to the registered owner of this Certificate (or of one or more Predecessor Certificates, as defined in the Ordinance hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date. All payments of principal of, premium, if any, and interest on this Certificate shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts and interest shall be paid by the Paying Agent/ Registrar by check sent by United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. -12- 0 3 I 3 N ,, . This Certificate is one of the series specified in its title issued in the· aggregate principal amount of $4,200,000 (herein referred to as the "Certificates") for the purpose of paying contractual obligations incurred with respect to (i) the purchase of (a) land for authorized needs and purposes, to wit: a sewer farm, and (b) materials, supplies, and equipment, in connection therewith, and ( i i) professional services, under and in strict conformity with the Constitution and laws of the State of Texas, particularly Article 2368a.l, V.A.T.C.S. and pursuant to an ordinance adopted by the governing body of the City (hereinafter referred to as the "Ordinance"). The Certificates are payable from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all taxable property in the City and are additionally payable from and secured by a lien on and pledge of the Net Revenues (as defined in the Ordinance) of the City's Sewer System (the "System"), such 1 ien and pledge being subordinate to the lien and pledge of the Net Revenues securing the payment of the Prior Lien Obligations (identified and defined in the Ordinance). In the Ordinance, the City reserves and retains the right to issue additional certificates equally and ratably secured with the Certificates by a parity lien on and pledge of the Net Revenues. Reference is hereby made to the Ordinance, a copy of which is on file in the principal office of the Paying Agent/ Registrar, and to all of the provisions of which the registered owner by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied for the payment of the Certificates; the properties constituting the System; the Net Revenues pledged to the payment of the principal of and interest on the Certificates; the nature, extent, and manner of enforcement of the pledge; the terms and conditions relating to the transfer or exchange of this Certificate; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the registered owners; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and prov1s1ons upon which the tax levy and the liens, pledges, charges, and covenants made therein may be discharged at or prior to the maturity of this Certificate, and this Certificate deemed to be no longer Outstanding thereunder; and for the other terms and prov1s1ons thereof. Capitalized terms used herein have the meanings assigned in the Ordinance. This Certificate, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register only upon its presentation and surrender at the principal office of the Paying Agent/Registrar, with the -13- 0 J I J N Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Certificates of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, may treat the registered owner hereof whose name appears on the Security Register (i) on the Record Date as the owner entitled to the payment of the interest hereon, (ii) on the date of surrender of this Certificate as the owner entitled to the payment of the principal hereof at its Stated Maturity, and (iii) on any other date as the owner for all other purposes, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of a non-payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each registered owner appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, recited, represented, and covenanted that the City is a duly organized and legally existing municipal corporation under and by virtue of the Constitution and laws of the State of Texas; that the issuance of the Certificates is duly authorized by law; that all acts, conditions, and things required to exist and be done precedent to and in the issuance of the Certificates to render the same lawful and valid obligations of the City have been properly done, have happened, and have been performed in regular and due time, form, and manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that the Certificates do not exceed any constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Certificates by the levy of an ad valorem tax and a pledge of and lien on the Net Revenues of the System as aforestated. In case any provision in this Certificate or any application thereof shall be invalid, -14- 0 ~ 1 l N illegal, or unenforceable, the validity, legality, and enforceability of the remaining prov1s1ons and applications shall not in any way be affected or impaired thereby. The terms and prov1s1ons of this Certificate and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the City Counci 1 of the City has caused this Certificate to be duly executed under the official seal of the City as of the Certificate Date. CITY OF LUBBOCK, TEXAS COUNTERSIGNED: :~ r-(CITY SEAL) / REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Certificate of Obligation has been duly issued and registered under the provisions of the within mentioned Ordinance; the Certificate of Obligation or Certificates of Obligation of the above entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. Registered this date: 0 l 1 l N TEXAS COMMERCE BANK, NATIONAL ASSOCIATION, Lubbock, Texas, as Paying Agent/Registrar By Authorized Signature -15- ASSIGNMENT . . FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee:) ...........•..................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ·~· ... (Social Security or other identifying number: ..•.............. . . . . . • . • . . . . . . . . . . . . . . . ) the within Certificate of Obligation and all rights thereunder, and hereby irrevocably constitutes and appoints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . attorney to transfer the within Certificate of Obligation on the books kept for registration thereof, with full power of substitution in the premises. DATED: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Signature guaranteed: . . . . . . . . . . . . . . . . . . . . . . . . . . NOTICE: The signature on this assignment must correspond with the name of the registered owner as it appears on the face the within Certificate of Obligation in every particular. SECTION 9: Definitions. For purposes of this Ordinance and for clarity with respect to the issuance of the Certificates herein authorized, and the levy of taxes and appropriation of Net Revenues therefor, the following words or terms, whenever the same appear herein without qualifying language, are defined to mean as follows: (a) The term "Additional Certificates" shall mean combination tax and revenue certificates of obligation hereafter issued under and pursuant to the provisions of Article 2368a.l, V.A.T.c.s., or any similar law hereafter enacted, and payable from ad valorem taxes and additionally payable from and secured by a lien · on and pledge of the Net Revenues on a parity with and of equal dignity with the lien and pledge securing the payment of the Certificates. (b) The term "Certificates" shall mean the $4,200,000 "City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1986" authorized by this Ordinance. (c) The term "Certificate Fund" shall mean the special Fund created and established under the provisions of Section 10 of this Ordinance. (d) The term "Collection Date" shall mean, when reference is being made to the levy and collection of annual ad valorem taxes, the date the annual ad valorem taxes levied each year by the City become delinquent. -16-0 3 1 3 N .. (e) The term "Fiscal Year" shall mean the annual financial accounting. period used with respect to the System now ending on September 30th of each year; provided, however, the City Council may change, by ordinance duly passed, such annual financial accounting period to end on another date if such change is found and determined to be necessary for accounting purposes. (f) The term "Maintenance and Operation Expenses" shall mean all reasonable and necessary expenses directly related and attributable to the operation and maintenance of the System, including, but not limited to, the cost of insurance, the purchase and carrying of stores, materials, and supplies, the payment of salaries and labor, and other expenses reasonably and properly charged, under generally accepted accounting principles, to the operation and maintenance of the System. Depreciation charges on equipment, machinery, plants, and other facilities comprising the System and expenditures classed under generally accepted accounting principles as capital expenditures shall not be considered as "Maintenance and Operation Expenses" for purposes of determining "Net Revenues". (g) The term "Net Revenues" shall mean , with respect to any period, all income, revenues, and receipts received from the operation and ownership of the System less Maintenance and Operation expenses of the System during such period. (h) The term "Outstanding" when used in this Ordinance with respect to Certificates means, as of the date of determination, all Certificates theretofore issued and delivered under this Ordinance, except: 0 l I l N (1) those cancelled by the delivered to the cancellation; Certificates theretofore Paying Agent/Registrar or Paying Agent/Registrar for (2) those Certificates for which payment has been duly provided by the City in accordance with the provisions of Section 26 hereof by the irrevocable deposit with the Paying Agent/ Registrar, or an authorized escrow agent, of money or Government Securities, or both, in the amount necessary to fully pay the principal of, premium, if any, and interest thereon to maturity; and (3) those Certificates that have been mutilated, destroyed, lost, or stolen and for which (i) replacement Certificates have been registered and delivered in lieu thereof or (ii) have been paid, all as provided in Section 24 hereof. -17- {i) The term "Prior Lien Obligations" shall mean revenue bonds or other obligations hereafter issued by the City of Lubbock which, by the ordinance authorizing the issuance thereof, are payable from and secured by a first lien on and pledge of the Net Revenues. {j) The term ~system" shall mean the City's sanitary sewer system, being all sanitary sewage collection system, ground storage facilities, effluent disposal and treatment facilities and/or other works and equipment. SECTION 10: Certificate Fund. For the purpose of paying the interest on and to provide a sinking fund for the payment and retirement of the Certificates, there shall be and is hereby created a special Fund to be designated "SEWER SYSTEM DEBT SERVICE, •• which Certificates Fund shall be kept and maintained at the City's depository bank, and moneys deposited in said Fund shall be used for no other purpose. Authorized officials of the City are hereby authorized and directed to make withdrawals from said Fund sufficient to pay the principal of and interest on the Certificates as the same become due and payable, and, shall cause to be transferred to the Paying Agent/Registrar from moneys on deposit in the Certificate Fund {on or prior to a principal and/or interest payment date) an amount sufficient to pay the amount of principal and/or interest falling due on the Certificates. Pending the transfer of funds to the Paying Agent/ Registrar, money in the Certificate Fund may, at the option of the City, be placed in time deposits or certificates of deposit secured by obligations of the type hereinafter described, or be invested, including investments held in book-entry form, in direct obligations of the United States of America, obligations guaranteed or insured by the United States of America, which, in the opinion of the Attorney General of the United States, are backed by its full faith and credit or represent its general obligations, or invested in indirect obligations of the United States of America, including, but not limited to, evidences of indebtedness issued, insured, or guaranteed by such governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan Banks, Government National Mortgage Association, Farmers Home Administration, Federal Home Loan Mortgage Association, Sm~ll Business Administration, Federal Housing Association, or Participation Certificates in the Federal Assets Financing Trust; provided that all such deposits and investments shall be made in such a manner that the money required to be expended from said Fund will be available at the proper time or times. All interest and income derived from deposits and investments in said Certificate Fund shall be credited to, and any losses debited to, the said Certificate Fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Certificates. -18-0 ) I 3 N SECTION 11: Tax Levy. To provide for the payment of the "Debt Service Requirements" on the Certificates being ( i) the interest on said Certificates and (ii) a sinking fund for their redemption at maturity or a sinking fund of 2% (whichever amount shall be the greater), there shall be and there is hereby levied for the current year and each succeeding year thereafter while said Certificates or any interest thereon shall remain Outstanding, 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 collection; said tax shall be assessed and collected each year and applied to the payment of the Debt Service Requirements, and the same sha 11 not be diverted to any other purpose. The taxes so levied and collected shall be paid into the Certificate Fund. The City Council hereby declares its purpose and intent to provide and levy a tax legally and fully sufficient to pay the said Debt Service Requirements, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax in consideration of all other outstanding indebtedness. The amount of taxes to be provided annually for the payment of the principal of and interest on the Certificates shall be determined and accomplished in the following manner: (a) Prior to the date the City Council establishes the annual tax rate and passes an ordinance levying ad valorem taxes each year, the Council shall determine: 0 J I J N (1) The amount on deposit in the Certificate Fund after (a) deducting therefrom the total amount of Debt Service Requirements to become due on Prior Lien Obligations and Certificates prior to the Collection Date for the ad valorem taxes to be levied and (b) adding thereto the amount of the Net Revenues of the System appropria- ted and allocated to pay such Debt Service Requirements prior to the Collection Date for the ad valorem taxes to be levied. {2) The amount of Net Revenues of the System, appropriated and to be set aside for the payment of the Debt Service Requirements on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding calendar year. -19- .. (3) The amount of Debt Service Require- ments to become due and payable on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding calendar year. (b) The amount of taxes to be levied annually each year to pay the Debt Service Requirements on the Certificates shall be the amount established in paragraph (3) above less the sum total of the amounts established in paragraphs (1) and (2), after taking into consideration delinquencies and costs of collecting such annual taxes. SECTION 12: Pledge of Revenues. The City hereby covenants and agrees that all the Net Revenues of the System, with the exception of those in excess of the amounts required to be deposited to the Certificate Fund as hereafter provided, are hereby irrevocably pledged to the payment of the principal of and interest on the Prior Lien Obligations, the Certificates and Additional Certificates if issued, and the pledge of Net Revenues herein made for the payment of the Certificates shall constitute a lien on the Net Revenues in accordance with the terms and provisions hereof and be valid and binding without any physical delivery thereof or further act by the City. SECTION 13: System Fund. The City hereby covenants and agrees that all revenues derived from the operation of the System shall be kept separate and apart from all other funds, accounts, and moneys of the City, and shall be deposited as collected into the "City of Lubbock Sewer System Fund" hereby created and established (hereinafter called the "System Fund"). All moneys deposited in the System Fund shall be pledged and appropriated to the extent required for the following purposes and in the order of priority shown, to wit: 0 l l J N First: To the payment of the reasonable and proper Maintenance and.Operation Expenses of the System as defined herein or required by statute to be a first charge on and claim against the revenues of the System. Second: To the payment of the amounts required to be deposited in the special funds and accounts created and established for the payment and security of the Prior Lien Obligations. Third: For deposit into the Certificate Fund or other fund created and established for the payment of principal of and interest on the Certificates or Additional Certificates. -20- Any Net Revenues rema1n1ng in the System Fund after satisfying the foregoing payments, or making adequate and sufficient provision for the payment thereof, may be appropria- ted and used for any other City purpose now or hereafter permitted by law. SECTION 14: Deposits to Certificate Fund. The City hereby covenants and agrees to cause to be deposited in the Certificate Fund from the pledged Net Revenues in the System Fund, an amount equal to one hundred per centum (100%) of the amount required to fully pay the interest and principa 1 then due and payable on the Certificates, such deposits to pay maturing principal and accrued interest on the Certificates to be made in monthly installments on or before the 15th day of each February and August, beginning August 15, 1986. The deposits to be made to the Certificate Fund, as hereinabove provided, shall be made until such time as such Fund contains an amount equal to pay the principal of and interest and premium, if any, on the Certificates to maturity. Accrued interest and premium, if any, received from the purchaser(s) of the Certificates shall be deposited to the Certificate Fund and ad valorem taxes levied, collected, and deposited in the Certificate Fund for and on behalf of the Certificates may be taken into consideration and reduce the amount of the deposits otherwise required to be deposited in the Certificate Fund from the Net Revenues. In addition, any surplus proceeds from the sale of the Certificates not expended for authorized purposes shall be deposited in the Certificate Fund, and such amounts so deposited shall reduce the sums otherwise required to be deposited in said Fund from ad valorem taxes and the Net Revenues. SECTION 15: Security of Funds. All moneys on deposit in the Funds for which this Ordinance makes provision (except any portion thereof as may be at any time properly invested) shall be secured in the manner and to the fullest extent required by the laws of Texas for the security of public funds, and moneys on deposit in such Funds shall be used only for the purposes permitted by this Ordinance. SECTION 16: Maintenance of System Insurance. The City covenants and agrees that while the Certificates remain Outstanding, it wi 11 maintain and operate the System with a 11 possible efficiency and maintain casualty and other insurance on the properties of the System and its operations of a kind and in such amounts customarily carried by municipal corpora- tions in the State of Texas engaged in a similar type business to the extent the City may be subjected to liability; and that it will faithfully and punctually perform all duties with reference to the System required by the Constitution and laws of the State of Texas; provided however, the City may also make provision for self insurance to cover any liability of the City. -21- 0 l I l N SECTION 17: Rates and Charges . The City hereby covenants and agree~ with the Holders of the Certificates that rates and charges foi the collection and disposal of sewage and other services afforded by the System will be established and maintained to provide revenues sufficient at all times to pay: (a) System; and all Maintenance and Operation Expenses of the (b) The deposits (i) for the payment and security of the Prior Lien Obligations, and (ii) to the Certificate Fund as required by this Ordinance. SECTION 18: Records and Accounts -Annual Audit. The City further covenants and agrees that so long as any of the Certificates remain Outstanding, it will keep and maintain separate and complete records and accounts pertaining to the operations of the System in which complete and correct entries shall be made of all transactions relating thereto, as provided by law. The Holders or any duly authorized agent or agents of such Holders shall have the right to inspect the System and all properties comprising the same. The City further agrees that following the close of each Fiscal Year, it will cause an audit of such books and accounts to be made by an independent firm of Certified Public Accountants. Copies of each annual audit shall be furnished to the Executive Director of the Municipal Advisory Council of Texas at his or her office in Austin, Texas, and, upon written request, to the original purchaser of the Certificates and any subsequent Holder. SECTION 19: Remedies in Event of Default. 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 payments to be made to the Certificate Fund, or (b) defaults in the observance or performance of any other of the covenants, conditions, or obligations set forth in this Ordinance, any Holder shall be entitled to a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the governing body of the City and other officers of the City to observe and perform any covenant, condition, or obligation prescribed in this Ordinance. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power, . or shall be construed to be a waiver of any such default or acquiescense 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 cumulative of all other existing remedies and the specification of such remedies shall not be deemed to be exclusive. -22- 0 l l 3 N ' f. __ . _________ _ SECTION 20: Special Covenants. The City hereby further covenants as follows: (a) That it has the lawful power to pledge the Net Revenues supporting this issue of Certifi- cates and has lawfully exercised said powers under the Constitution and laws of the State of Texas. (b) That other than for the payment of the Certificates and the Prior Lien Obligations, as herein provided, the Net Revenues have not in any manner been pledged to the payment of any debt or obligation of the City or of the System. (c) That, as long as any Certificates or any interest thereon remain Outstanding, the City will not sell, lease, or encumber the System or any substantial part thereof, provided that this covenant shall not be construed to prohibit the sale of such machinery, or other properties or equipment which has become obsolete or otherwise unsuited to the efficient operation of the System. (d) The City recognizes that the purchasers and owners of the Certificates will have accepted them on, and paid therefor a price which reflects, the understanding that interest thereon is excludable from federal income taxation under laws in force at the time the Certificates shall have been delivered. In this connection the City covenants to take no act ion or f ai 1 to take any action, which action or failure to act may render the interest on any of such Certificates subject to federal income taxation, particularly pursuant to section 103 of the Internal Revenue Code of 1954, as amended, nor shall the City take any action or fail to take any action, which action or failure to act, would have the effect of causing the income derived by the City from the System to become subject to federal income taxation in the hands of the City, whether or not provision shall have been made for the payment of such Certificates. SECTION 21: Issuance of Additional Certificates. The City hereby expressly reserves the right to hereafter issue Additional Certificates payable from and secured by a lien on and pledge of the Net Revenues of equal rank and dignity, and on a parity in all respects, with the lien thereon and pledge thereof securing the payment of the Certificates. -23·· 0 J 1 .I N SECTION 22: Notices to Owners -Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the business day next preceding the mailing of such notice. In any case where notice to Holders is given by mai 1, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Certificates. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/ Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 23: Cancellation. All Certificates surrender- ed for payment, transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly cancelled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already cancelled, shall be p~omptly cancelled by the Paying Agent/ Registrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Certificates previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Certificates so delivered shall be promptly cancelled by the Paying Agent/ Registrar. All cancelled Certificates held by the Paying Agent/Registrar shall be returned to the City. SECTION 24: Mutilated, Destroyed, Lost, and Stolen Certificates. If ( 1) any mutilated Certificate is surrendered to the Paying Agent/Registrar, or the City and the Paying Agent/Registrar receive evidence to their satisfaction of the destruction, loss, or theft of any Certificate, and (2) there is delivered to the City and the Paying Agent/Registrar such security or indemnity as may be required to save each of them harmless, then, in the absence of notice to the City or the Paying Agent/Registrar that such Certificate has been acquired by a bona fide purchaser, the City shall execute and, upon its request, the Paying Agent/Registrar shall register and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Certificate, a new Certificate of the same Stated Maturity and of like tenor and principal amount, bearing a number not contemporaneously outstanding. -24- 0 l I l N '. In case any such mutilated, Certificate has become or is about the City in its discretion may, Certificate, pay such Certificate. destroyed, lost, or stolen to become due and payable, instead of issuing a new Upon the issuance of any new Certificate under this Section, the City may require payment by the Holder of a sum sufficient to cover any tax or other governmental charge imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent/Registrar) connected therewith. Every new Certificate issued pursuant to this Section in lieu of any mutilated, destroyed, lost, or stolen Certificate shall constitute a replacement of the prior obligation of the City, whether or not the mutilated, destroyed, lost, or stolen Certificate shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Certificates. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost, or stolen Certificates. SECTION 25: No Arbitrage. The City hereby certifies and covenants that the proceeds of the Certificates are needed at this time to finance the costs of improvements to the solid waste disposal system; based on current facts, estimates, and circumstances, it is reasonably expected final disbursement of the Certificate proceeds will occur within three years from the date of the receipt thereof by the City; it is not reasonably expected the proceeds of the Certificates or moneys deposited in the Certificate Fund created for the payment of the Certificates wi 11 be used or invested in a manner that would cause the Certificates to be "arbitrage bonds" within the meaning of section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations or published rulings pertaining thereto; and save and except for the Certificate Fund created herein, no other funds or accounts have been established or pledged for the payment of the Certificates. Proper officers of the City charged with the responsibility in the issuance of the Certificates are hereby authorized and directed to make, execute, and deliver certifications as to facts, estimates, and circumstances in existence as of the date of the issue of the Certificates and stating whether there are any facts, esti- mates, or circumstances which would materially change the City's current expectations, and the covenants herein made and certifications herein authorized are for the benefit of the Holders and may be relied upon by the Holders and bond counsel for the City. -25- SECTION 26: Satisfaction of Obligations of City. If the City shall pay. or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Certificates, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied and the lien on and pledge of the Net Revenues of the System under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Certificates, or any principal amount(s) thereof, shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money suffi- cient to pay in full such Certificates or the principal amount(s) thereof at maturity, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Securities shall have been irrevocab- ly deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have been certified by an independent accounting firm to mature as to principa 1 and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the principal of and interest on such Certificates, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof. The City covenants that no deposit of moneys or Government Securities will be made under this Section and no use made of any such deposit which would cause the Certificates to be treated as "arbitrage bonds" within the meaning of section 103 (c) of the Internal Revenue Code of 1954, as amended, or regulations adopted pursuant thereto. Any moneys so deposited with the Paying Agent/ Regi- strar, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Certificates, or any principal amount(s) thereof, or interest thereon with respect to which such moneys have been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Certificates and rema1n1ng unclaimed for a period of four (4) years after the Stated Maturity of the Certificates for which such moneys were deposited and are held in trust to pay, shall upon the request of the City be remitted to the City against a written receipt therefor. -26-0 J I l N The term "Government Securities", as used herein, means direct obligations . of, or obligations the principal and interest of which are unconditionally guaranteed by, the United States of America, which are non-callable prior to the respective Stated Maturities of the Certificates, and which may be United States Treasury Obligations such as the State and Local Government Series and which may be in book-entry form. SECTION 27: Ordinance a Contract -Amendments. This Ordinance shall constitute a contract with the Holders from time to time, be binding on the City, and shall not be amended or repealed by the City so long as any Certificate remains Outstanding except as permitted in this Section. The City, may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner n·· t detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the written consent of Holders owning a majority in aggregate principal amount of the Certificates and Additional Certificates then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding Certificates, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principa 1 of, premium, if any, and interest on the Certificates, reduce the principal amount thereof, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Certificates, (2) give any preference to any Certificate over any other Certificate, or (3) reduce the aggregate principal amount of Certificates required to be held by Holders for consent to any such amendment, addition, or rescission. SECTION 28: Control and Custody of Certificates. The Mayor of the City shall be and 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, including the printing and supply of definitive Certificates, and shall take and have charge and control of the Initial Certificate pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts, and the delivery thereof to the Purchasers. Furthermore, the Mayor, the City Secretary, the City Manager, and the Assistant City Manager for Financial Services, any one or more of said officials, are hereby authorized and directed to furnish and execute such documents relating to the City and its financial affairs as may be necessary for the issuance of the Certificates, the approval of the Attorney -27- 0 3 I 3 N .. General, and_ their registration by the Comptroller of Public Accounts and, together with the City's financial advisor, bond counsel, and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Certificate to the Purchasers and the initial exchange thereof for definitive Certificates. SECTION 29: Bond Counsel's Opinion. The Purchasers' obligation to accept delivery of the Certificates is subject to being furnished a final opinion of Fulbright & Jaworski, Attorneys, Dallas, Texas, approving such Certificates as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such Certificates. Printing of a true and correct reproduction of said opinion on the reverse side of each of the definitive Certificates is hereby approved and authorized. SECTION 30: CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Certificates. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Certificates shall be of no significance or effect as regards the legality thereof and neither the City nor the attorneys approving said Certificates as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Certificates. SECTION 31: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, the Paying Agent/Registrar, and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the City, the Paying Agent/Registrar, the Holders, and Bond Counsel. SECTION 32: Inconsistent Provisions. All ordinances, orders, or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict and the provisions of this Ordinance shall be and remain controlling as to the matters contained herein. SECTION 33: Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 34: Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. -28-0 3 l 3 N SECTION 35: Severability.· If any prov1s1on of this Ordinance or the application thereof to any circumstance shall be held to be invalid, the remainder of this Ordinance or the application thereof to other circumstances shall nevertheless be valid, and this governing body hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 36: Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Article 6252-17, Vernon•s Texas Civil Statutes, as amended. SECTION 3 7: Effective Date. in force and effect from and after shown below. This Ordinance shall be its passage on the date PASSED AND.APPROVED ON FIRST READING, this July 24, 1986. PASSED AND APPROVED ON SECOND AND FINAL READING, this July 25, 1986. CITY OF LUBBOCK, TEXAS ATTEST: (City Seal) -29- 0 l 1 l N .. FULBRIGHT & JAWORSKI Mr. J. Robert Massengale Assistant City Manager for Financial Services P.O. Box 2000 Lubbock, Texas 79457 July 18, 1986 200J 8ty11n TDW!Pr, Suits J400 Houston Dallas, Tex11s 7520J Wsshington. D.C. Austin Telephone: 2141969-0022 San Antonio Dallas Llmdon Zurich RE: $4,200,000 "City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation" Dear Robert: We have prepared and are enclosing the proceedings for authorization and sale of the above described certificates, to wit: 1. Two copies of Waiver of Notice and Consent to Special Meeting for the meeting being held July 25, 1986, to be executed by any member(s) of the Council absent from such meeting. If executed, return both copies to us. If there are no absentees, you may discard. 2. Four copies of Certificate of City Secretary for the July 24th, 1986, meeting to be completed, signed, sealed and all copies returned to us. 3. Two copies of Ordinance authorizing issuance of the Certificates. After passage and adoption on second reading, one copy is for the City's records and one copy is to be returned to us. 4. Four copies of Certificate of City Secretary for the meeting on July 25, 1986, to be completed, signed, sealed and all copies returned to us. Mr. J. Robert Massengale July 18, 1986 Page 2 5. Five copies of General Certificate to be dated, executed and sealed. Four copies are to be returned to us and one copy is to be retained for the City's records. 6. Five copies of Certificate as Obligation to be dated, executed and sealed. to be returned to us and one copy retained records. to Contractual Four copies are for the City's 7. Five copies of Signature and No-Litigation Certificate to be executed and sealed but do not date. The signatures of the City officials must conform ~ their signatures on the Initial Certificate and are to be verified by the City's depository bank with the bank's seal impressed on each certificate. Return all copies to us. 8. Four copies of the No-Arbitrage Certificate to be executed and sealed, but do not date. Please note that Schedule A needs to be completed-.--Return all copies to us and upon delivery we will furnish a copy for the City's records. 9. Four Copies of Certificate as to Official Statement to be executed and sealed, but do not date. Return all copies to us. 10. Two copies each of five After execution, return one copy of retain one copy for the City's files. letters of instruction. each letter to us and 11. Three copies of Treasurer's Receipt to be executed, but not dated. The City Treasurer's signature is to be verified bythe City's depository bank with the bank seal impressed on each Receipt. 12. The Initial Certificate to be signed and sealed. Return to us. _..--- 13. Notice of Meeting for meeting to sell Certifi- cates of Obligation on July 31, 1986. 14. Two copies of Waiver of Notice and Consent to Special Meeting for meeting on July 31st and to be used if a member(s) of the Council is absent from such meeting. If executed by absent member(s), return both copies to us. If not used, you may discard. 15. Four copies of Certificate of City Secretary for meeting on July 31, 1986, to be completed, executed, sealed and all copies returned to us. Mr. J. Robert Massengale July 18, 1986 Page 3 16. Two copies of Resolution awarding sale and establishing interest rates to be completed, executed and sealed. Return one copy to us and retain one copy for City's files. Should you have any questions, please advise. Very truly yours, E~rrowfo EMM:tss Enclosures cc: Mr. Joe Smith 1 Z 5 Z D J CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS § § § § § COUNTY OF LUBBOCK CITY OF LUBBOCK Ordinance #8949 I, the undersigned, City Secretary of the City of Lubbock, Texas, DO HEREBY CERTIFY as follows: 1. That on the 24th day of July, 1986, the City Council of the City of Lubbock, Texas, convened in regular session as its regular meeting place in the City Hall of said City; the duly constituted members of the City Council being as follows: B. C. McMINN GEORGE W. CARPENTER MAGGIE TREJO ) . T. J. PATTERSON ) BOB NASH ) GARY D. PHILLIPS ) JOAN BAKER ) Mayor Mayor Pro-Tem Councilmembers and all of said persons were present at said meeting except the following: ~~N~o_ne~------~~--~--~--~~--~~--~~--~~~­Among other business considered at. said meeting, the attached ordinance entitl~d: AN ORDINANCE authorizing the issuance of $4,200,000 "CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1986"; providing for the payment of ·said certifi- cates ·of obligation by the levy of an ad valorem tax upon all taxable property within the City and a pledge of the net revenues derived from the operation of the City's S~wer System; providing the termi and condi- tions of such certificates of obligation and . resolving other matters. incident and relat- ing to the issupnce, payment, security, sale and delivery of said certificates; and pro- viding an effective date. ... I ,. was introduced and submitted to the Council for passage and adoption. After presentation and due consideration of the ordinance, a motion was made by Councilmember Carpenter that the ordinance be passed and adopted on first reading. The motion was seconded by Counci lmember Nash and the ordinance was passed and adopted on first reading by the City Council by the following vote: 7 voted "For" 0 ---voted "Against" 0 abstained all as shown in the official minutes of the Council for the meeting held on the aforesaid date. 2. That the attached ordinance is a true and correct copy of the original on file in the official records of the City; the duly qualified and acting members of the City Council of said City on the date of the aforesaid meeting are those persons shown above and, according to the records of my office, each member of the Counci 1 was given advance not ice of the time, place, and purpose of the meeting; and that said meeting, and deliberation of the aforesaid public business, was open to the public and written notice of said meeting, including the subject of the entitled ordinance, was posted and given in advance thereof in compliance with the provisions of Article 6252-17, Section 3A, V.A.T.C.S. IN WITNESS WHEREOF, I have hereunto signed my name offi- cially and affixed the seal of said City, this the 24th day of July, 1986. City of Lubbock, Texas (City Seal) I '' J'' ·J THE STATE OF TEXAS COUNTY OF LUBBOCK CITY OF LUBBOCK GENERAL CERTIFICATE § § § § § Ordinance #8949 WE, ively, of follows: the undersigned, Mayor and City Secretary, respect- the City of Lubbock, Texas, DO HEREBY CERTIFY as 1. Relative to Tax Supported Indebtedness. That the total principal amount of indebtedness of the City, including the proposed $4,200,000 "CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATIONS, SERIES 1986," dated July 15., 1986, payable in whole or in part from ad valorem taxes levied and collected by the City is as follows: General Obligation Bonds and Certificates of Obligation The Certificates $75,689,070 4,200,000 TOTAL INDEBTEDNESS-----------$79,889,070 2. Relative to Debt Service Requirements. That a debt service requirement schedule for the City• s outstanding tax-supported indebtedness, as well as the proposed "City of Lubbock, Texas, Combination Tax and Revenue Sewer System Subordinate Lien Certificates of Obligation, Series 1986, •• is attached hereto as Exhibit A and ma.de a part of this Certificate for all purposes. 3. Relative to Petition. That no petition of any kind or character, signed by at least 5% of the qualified electors of the City, has been filed with the Mayor, City Secretary, or any other official of the City p-rotesting the issuance of the proposed $4,200,000 "CITY OF _LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1986," dated J~ly 15, 1986. 4. Relative to Taxable Values . . That the assessed value of all taxable property (net of exemptions) in the City, as shown by the tax rolls for the year 1986, and which have been duly approved and are the latest official assessment of taxable property in the City, is as follows: TOTAL ASSESSED TAXABLE VALUES OF REAL AND PERSONAL PROPERTY 5. Relative to Nonencumbrance. $4,012,901,338 That, save and except for the proposed CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1986, dated July 15, 1986, the income and revenues of said System have not been pledged or hypothecated in any other manner or for any other purpose; and that the above obligations evidence the only lien, encumbrance, or indebtedness of said System or against the income and revenues of such System. 6. . Relative to Rates and Charges. That the current monthly rates and charges for services provided by the City's Sewer System are as shown in Exhibit B attached hereto and made a part hereof for all purposes. 7. Relative to Sewer System. That the City has obtained all licenses, permits, and approvals for the operation system and, as of the date hereof, no question is no proceedings of any nature have been instituted the City's operation of a sewer system. requisite of a sewer pending and questioning 8. Relative to Income and Revenues. That the following is a revenues, operating expenses, and net Sewer System for the years stated: schedule of the gross revenues of the City • s FISCAL YEAR .GROSS OPERATING NET ENDING REVENUES EXPENSES REVENUES 1981 $2,758,240 $1,710,934 $1,047,306 1982 2,961,655 2,041,333 920,322 1983 3,202,484 2,370,151 832,333 1984 3,652,528 2,441,555 1,210,973 1985 4,173,730 2,48;2,623 1,691,107 -2- 0 l 1 7 N I I I i 9. Relative to City Officials. That certain duly qualified and acting officials of the City are as follows: B. C. McMINN RANETTE BOYD J. ROBERT MASSENGALE MAYOR CITY SECRETARY -TREASURER ASSISTANT CITY MANAGER FOR FINANCIAL SERVICES 10. Relative to Incorporation. That said City is incorporated under the General Laws of the State of Texas, and is operating under the Home Rule Amendment to the Texas Constitution, Section 5, Article XI, as amended in 1912; the City Charter was originally adopted at an election held on December 27, 1917, and said Charter has not been amended in any respect since January 24, 1967, the date of the last Charter Amendment election. WITNESS OUR HAND AND THE SEAL OF THE CITY OF LUBBOCK, TEXAS, this the 25th day of July, 1986. MaYOr, City of Lubbock, Texas (_~ .. ~-i ~-~ ~ cTIYSecretai~ City of Lubbock, Texas (City Seal) -3-0 J I 7 N OE8T SERVICE RE2UIREMENTS Less: Waterworks Less: Gener.:al System Sewer System Purp!l:;t.; .. Year General General Gener.:al • ..... 01 Ending Outstanding Bonds The Certificates Grand Total Obligation Obligation Oblig.Ui<)ll Princil)dl 9/lO Princieal Interest Total Prind2al Interest Total Re uirements Reguiremen ts Reguirements lte uirements llctirc•l -mr s 1,&50,000 s lf,4l9,08l s 6.289,081 s s s 6,289,083 s 2,163,095 s 57S,15l 1.550,615 1987 6,&45,000 '· 192,796 12,017,796 725,000 282,656 1,007,656 11,045,452 , ,170. "9 l,lflS,901f 7,258,979 1988 6,670,000 4,759,401 ll,429,1f01 775,000 208,406 981,406 12 ,ttt2 ,807 ,,.,7,719 l,lttl,666 6,921.1!:!1 1989 6,445,000 4,l09,tt06 10,754,406 850,000 l5l,561 1,001.561 11,757,969 1,&99,409 1,257 ,81f5 6,600,715 1990 6,275,000 . l,&56,91flt l0,111,91flt 900,000 91f,500 , •• 500 ll,126,41flf 1,671,182 I ,181, S81f 6,273,678 3&. W'\o 1991 6,110,000 1,tt05,17S 9,H51175 950,000 12,06) 9&2,061 10,517,238 1,U2,1fl5 1,10&, 520 5,956,103 1992 5.8o5,ooo 2,968,695 &,771,695 8,771,695 1,169,578 1,010,257 , , 591.860 1993 5,21f5,000 2,561 19U 7,&06,985 7,&06,985 2,805,021 873,005 lf,l23,957 199fl IJ,885 1000 2,1&2,415 7,067 ,,.., 7,067 ·" 15 2,HO,OlS 732,176 3,755,201 1995 fl,l95,000 1,827,8&1 6,222.!83 6,222,881 2,215,001 671,lfl5 1,136,517 71.87•.•;. 1996 lf,lfOO,OOO l,lfU,_,O 5,8U,If50 S,8111,tt50 2,091,188 6]), 169 3,1S6,893 1997 tt,HO,OOO 1,115,975 5,tt65,97S ,,,65,975 1,9fll,S90 581f ,230 2,940,155 1998 ",ns ,ooo 787,278 5,ll2 ,278 5,112,278 1,822,021 5fl7,11t8 2,763,109 1999 tt,21t0 1000 418 ,&90 ,,67!,&90 4,678,1190 I ,656,691 492 ,81f2 2,~29,1)5 2000 1,786,107 2,151,,42 1,917,749 1,917 ,71f9 1,180.858 l96,t,lf5 2,160,446 'J).Z4'JU 2001 1,55tt,41f2 1,791,&09 l,11f6,251 1, )lf6 ,251 1,161,710 120,897 1,86l,621f 2002 1,251,639 1,016,111 2,289,750 2,289,750 761f,&ll 178,1fl6 1,146,481 2001 110Bif 1682 508.568 11593 1250 1aS9l.250 505.563 87·77' 9991908 100.00"\o $77 • 5l9. 070 $,.. ,a 11,106 $122,176,176 $1f,200,000 $771,188 $1f,971,188 $127. 1U. "" $If] ,750. 505 $1l,lf61,&01 $70,1 ]),258 NOTE: INTEitfST ON THE CERTIFICATES HAS BEEN CALCULATED AT THE RATE OF 6.750'16 FOR PURPOSES OF ILLUSTRATION. IT1 X f'f1 :r.: >< _ ... ,...,_ Ci::J •. !. -; _, tp ~ -_, ....b. EXHIBIT A SEWER RATES (Monthly} The City plans to increase sewer rates effective August 1, 19&6a Residential Proposed Rates (Effective 8-1-16) First 3,000 gallons $3 .!3 (Minimum) Next 7,000 gallons 0 .ll/M gallons Over 10,000 &allons (No Char&e) (Maximum Monthly Charge -$6.16) Present Rates (Effective 10-23-U) First j, 000 gallons $2. 76 (Minimum) Next 7,000 gallons 0.23/M gallons Over 10,000 gallons (No Charge) (Maximum Monthly Charge-$•.31) CommerciallndustriaJ• First 3,000 &allons Over 3,000 gallons $l.U (Minimum)*• 0.33/M &allons First l, 000 &allons Over 1,000 gallons $2.70 (Minimum)*•• 0. 23/M gallons • Industrial waste that exceeds the allowable strength is admitted to the sewer only by contract with the City; charge for treating 6.0.0. is $0.0'4'/lb. and S.S. $0.0463/lb. ** Based on '''"or 3/•" meter; higher minimums for larger meters up to $392." for a 10" meter. ••• Sased on '''"or 3/4" meter; higher minimums for larger meters up to $272.00 for a 10" meter. Ordinance #8949 CERTIFICATE AS TO CONTRACTUAL OBLIGATIONS THE STATE OF TEXAS COUNTY OF LUBBOCK CITY OF LUBBOCK § § § § ~ § I, the undersigned, Mayor of the City of Lubbock, Texas, DO HEREBY CERTIFY, REPRESENT, and WARRANT, in reference to the contractual obligations to be incurred and paid with the pro- ceeds of sale of $4,200,000 "CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1986," dated July 15, 1986 {the "Certificates"), that: (1) the contract for the acquisition of land and facilities (the "Project") has heretofore been approved by the City Council; (2) various contracts for professional services to be funded with the proceeds of the Certificates have been approved by the City Council; (3) the proceeds derived from the sale of the Certificates wi 11 be expended for_ the purpose of paying the aforesaid contractual obligations. TO CERTIFY WHICH, · witness my hand and the sea 1 of the City of Lubbock, Texas, this the 25th day of July, 1986. (City Seal) Ordinance #8949 SIGNATURE AND NO-LITIGATION CERTIFICATE THE STATE OF TEXAS COUNTY OF LUBBOCK CITY OF LUBBOCK § § § § § WE, the undersigned, officials of the City of Lubbock, Texas (the "Issuer"), do hereby certify as follows: (1) That this Certificate is executed and delivered with reference to the following described certificates of obli- gation: "CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATIONS, SERIES 1986," dated July 15, 1986 (the "Certificate Date"), in the aggregate principal amount of $4,200,000 (the "Certificates"). (2) The Certificates have been duly and officially executed by the undersigned with their manual or facsimile· signatures in the same manner appearing thereon, and the under- signed hereby adopt and ratify their respective signatures in the manner appearing on each of the Certificates whether in manual or facsimile form, as the case may be, as their true, genuine, and official signatures. (3) That on the Certificate Date and on the date hereof; we were and are the duly qualified and acting officers indicated therein and authorized to execute the same. (4) The legally adopted proper and official corporate seal of the Issuer is impressed, imprinted, or lithographed on all of the Certificates and impressed on this certificate. (5) No litigation of any nature is now pending before any federal or state court, or administrative body, or to our knowledge threatened, · seeking to restrain or enjoin the issu- ance or delivery of the Certificates or questioning the issu- ance or sale of the Certificates, the authority or action of the governing body of the Iss.uer relating to the issuance or sale of the Certificates, the levy of the tax or the assessment and collection thereof to pay·the principal of and interest on the Certificates, the collection of the revenues of the City's Sewer System (the "System") or the imposition of rates arid charges with respect to the System, pledged to pay the princi- pal of and interest on the Certificates, or that would other- wise adversely affect in a material manner the financial condi- tion of'the Issuer to pay the principal of and interest on the Certificates; and that neither the corporate existence or boun- daries .of the Issuer. nor the right to hold office of. any member of the governing body of the Issuer or any other elected or appointed official of the Issuer is being contested or other- wise questioned. (6) That no petition or other request has been filed with or presented to any official of the Issuer requesting any proceeding authorizing the issuance of the Certificates adopted by the governing body of the Issuer be submitted to a referen- dum or other election; no authori t~" ,.. ..................... ~...:~.: --~:~ ... the issu- ance, sale, or delivery of the Ce1 d adopted by the governing body of the Issue! repealed, revoked, rescinded, or otherwise date of passage thereof, and all such proc ty relat- ing to the issuance and sale of tt n in full force and effect as of the date of I EXECUTED AND DELIVERED this 00 /VCJ"T 0-4'7& r· (Issuer's Seal) SIGNATURE OFFICIAL TITLE Mayor, City of Lubbock, Texas City Secretary, City of Lubbock, Texas / The signatures of the persons subscribed above are here- ,,by certified to be true and genuine . . '.'' '' ''. (Bank) By: Authorized Officer (Bank Seal) l a s 2 E -2- Ordinance #8949 July 24, 1986 Texas Commerce Bank, National Association Corporate Trust Department P.O. Box 841 Lubbock, Texas 79408 Attention: Ms. Jeanelle Ward RE: $4,200,000 City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1986, dated July 15, 1986 Ladies and Gentlemen: Enclosed herewith you will find four Certificates as to Official Statement relating to the sale of the above described certificates of obligation, executed and completed except as to date. When the certificates of obligation have been taken up and paid for, kindly date and release one copy of the Certificate as to Official Statement to the purchaser(s) there- of, and forward the remaining three copies to Messrs. Fulbright & Jaworski, 2001 Bryan Tower, Suite 1400, Dallas, Texas 75201, Attention: Elbert M. Morrow. 0 3 l 4 N Thanking you in advance, we are, Very truly yours, ayor, City of Lubbock, Texas ~~·---~~ ssistant City Mane:!'* for Financial Services City of Lubbock, Texas Attorney General of Texas P.O. Box 12548 Capitol Station Austin, Texas 78711 July 24, 1986 Attention: Public Finance Division RE: $4,200,000 City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1986, dated July 15, 1986 Ladies and Gentlemen: Enclosed herewith is the Initial Certificate of the above series and a Signature and No-Litigation Certificate relating thereto, executed and completed except as to date. When the record of proceedings relating to the issuance of the above referenced series of certificates of obligation and the Initial Certificate have been approved by your office, this will be your authority to insert that date in the Signature and No-Litigation Certificate and deliver such Initial Certificate to the Comptroller of Public Accounts for registration. Should any litigation in any way affecting the issuance of the certificates of obligation or the security for the pay- ment thereof develop prior to that date, we, the undersigned, will notify you at once by telephone and by telegraph. You may thus be assured that there is no such litigation at the time the certificates of obligation are finally approved unless notice to the contrary has been given in the manner aforementioned. Thanking you for your assistance in this matter. Very truly yours, ayor, ~xas. City Se retary~ City of Lubbock, Texas Bond Registration Division Comptroller of Public Accounts 111 East 17th Street Austin, Texas 78774 Ordinance #8949 July 24, 1986 RE: $4,200,000 City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1986, dated July 15, 1986 Dear Sir: The Initial Certificate of Obligation to be delivered of the series of certificates of obligation described above will be delivered to you by the Attorney General when approved by him, and we· request that you kindly register said Initial Certificate of Obligation on behalf of the City, and when so registered, deliver the same to Texas Commerce Bank, National Association, P.O. Box 841, Lubbock, Texas 79408, Attention: Ms.· Jeanelle Ward, for further handling under our instructions to them. We further request that one copy of the approving opin- ion ·of the Attorney General and Comptroller•s Registration Certificate be enclosed with the Initial Certificate of Obligation when .it is sent to the aforementioned Bank, and . two additional copies of the approving opinion of the Attorney General, together with the Comptroller's Registration Certificate, be mailed directly to Fulbright & Jaworski, 2001 Bryan Tower, Suite 1400, Dallas, Texas 75201, Attention: Elbert M. Morrow. Thanking you for your assistance in this matter. Very truly yours, II: C.J&S ~ Mayor, City of Lubbock, Texas 0Jl4N ' ' TO CERTIFY WHICH, witness our hands and the seal of the City, ~his ayor, City of Lubbock, Texas ;J, 112...df0. ..... ~ ~ ssistant City Ma ger for Financial Services City of Lubbock, Texas "' (City Seal) ·' OlZON -2- :} CERTIFICATE AS TO OFFICIAL STATEMENT THE STATE OF TEXAS COUNTY OF LUBBOCK CITY OF LUBBOCK § § § § § Ordinance #8949 RE: $4,200,000 City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1986, dated July 15, 1986 .WE, THE UNDERSIGNED, officials of the City of Lubbock, Texas (the "City"), acting in our official capacities, DO HERE- BY CERTIFY that to the best ~f our knowledge and belief: (a) The descriptions and statements of or pertaining to the City contained in its Official Statement, and any addenda, supplement, or amend- ment thereto, on the date of such Official Statement, on the date of sale of said Certificates and the acceptance of the best bid therefor, and on the date of the delivery, were and are true and correct in all material respects; (b) Insofar as the City and its affairs, including its financial affairs, are concerned, such Official Statement did not and does not con- tain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements there- in, in the light of the circumstances under which they were made, not misleading; (c) Insofar as the descriptions and state- ments, including f inan~ia 1 data, of or pertaining to entities, other than the City, and their activi- ties contained· in such bfficial Statement are con- cerned, such statements and data have been obtained from sources which the City believes to be reliable and that the City has no reason to believe that they are untrue in any material respect; and (d) There has been no material adverse · change in the financial condition 6f the City since the date of the last audited financial statements of the City. American State Bank Trust Department P. 0. Box 1401 Lubbock, Texas 79408 July 23, 1986 Attention: Don Hudgeons, Executive Vice President RE: $4,200,00 City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1986, dated July 15, 1986 Ladies and Gentlemen: In reference to the above described series of certificates of obligation, the payment for and delivery of the same to the initial purchasers is to occur at your Bank. Preliminarily to the delivery of said obligations, you will be receiving a single fully registered certificate of obligation in the total principal amount of said series (the "Initial Certificate") from the Comptroller of Public Accounts of the State of Texas, together with the approving opinion of the Attorney General. When said Initial Certificate has been received, please forward the same by overnight delivery, together with the approving opinion of the Attorney General, to the firm of Fulbright & Jaworski, 2001 Bryan Tower, Suite 1400, Dallas, Texas 75201, for their examination and review. After the examination of the Initial Certificate by said· Firm, the same will be returned to you and thereupon you are authorized to deliver the same to the purchasers thereof, to wit: . , or their order, upon payment being made therefor in immediately available funds in accordance with the terms of the Treasurer's Receipt enclosed herewith. When payment for the obligations has occurred, please transmit the proceeds thereof by the fastest means available in immediately available funds to the City's depository bank, American State Bank, Trust Department, P. 0. Box 1401, Lubbock, Texas 79408, Attention: Don Hudgeons, Executive Vice President. Enclosed herewith you will find four copies of the Signature and No- Litigation Certificate and three· copies .of the Treasurer's Receipt executed and completed except as to date. When payment for the Initial Certificate is made, please date and release one copy of the Signature and No- Litigation Certificate to the purchasers and forward the remaining copies of said No-Litigation Certificate and all copies of the Treasurer's receipt to Bond Counsel at the address shown above. Should any litigation having any effect upon the subject certificates of obligation develop prior to the time you have received payment for the same, we, the undersigned will notify you at once by telephone and by telegraph. You may thus be assured that there is no such litigation at the time the certificates of obligation are delivered to you unless you have been advised otherwise in the manner aforementioned. ·Mayor, City of Lubbock, Texas ~~ City of Lubbock, Texas Messrs. Fulbright & Jaworski 2001 Bryan Tower, Suite 1400 Dallas, Texas 75201 July 24, 1986 RE: $4,200,000 City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1986, dated July 15, 1986 Gentlemen: Enclosed you will find four No-Arbitrage Certificates executed but undated. At such time as the above described certificates of obligation are delivered to the purchaser, you are authorized to complete and date each of these No-Arbitrage Certificates. Very truly yours, ayor, City of Lubbock, Texas /1 ... " City Manager, ~v City of Lubbock, Texas 0 J l 4 N WAIVER OF NOTICE AND CONSENT TO SPECIAL MEETING That, in relation to a special meeting of the City Council of the CITY OF LUBBOCK, TEXAS, held on the 31st day of July, 1986, THE UNDERSIGNED MEMBER(S) OF THE COUNCIL, who was (or were) absent therefrom, CERTIFY, REPRESENT, AND ACKNOWLEDGE that due notice of said meeting and the business to be trans- acted was received in advance thereof and the undersigned HEREBY WAIVE any objection to the holding of said special meeting and the transaction of all business at said meeting incident and related to the sale of "CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1986", dated July 15, 1986, including the passage and adoption of a resolution awarding the sale of said Certificates and establishing the interest rates. EXECUTED AND DATED, the ~ day of July, 1986. Councilmember l 2 5 t D Ordinance #8949 THE STATE OF TEXAS COUNTY OF LUBBOCK CITY OF LUBBOCK TREASURER'S RECEIPT § § § § § THE UNDERSIGNED HEREBY CERTIFIES as follows: (1) That this certificate is executed and delivered with respect to the following described certificates of obliga- tion: City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1986, dated July 15, 1986, in the aggregate principal amount of $4,200,000. . (2) That on the date shown below as the date of exe- cution and delivery of this instrument, said certificates of obligation were delivered to the purchaser, namely: (3) That all of said certificates of obligation have been paid for in full by the purchaser concurrently with the delivery of this certificate, and the issuer of said certifi- cates of obligation has received the agreed purchase price for said certificates of obligation, as follows: PRINCIPAL AMOUNT --------------------$ 4,200,000 ACCRUED INTEREST -------------------- PREMIUM ------------------------------------------- TOTAL AMOUNT RECEIVED ON DELI THEREOF -- ( 4) That the unders'igned cate in the capacity· hereinafter f said issuer of the certificates of o EXECUTED AND DELIVERED, this Do N c r 0~7<:::.. I I I t. f. per 1. 1.- ~half of I The foregoing signature of the foregoing designated official of the issu~r is hereby certified as genuine. (Bank Seal} 0 3 I 9 N (Bank} By Ti~t~1-e-------------------------- -2- REGISTERED $4,200,000 UNITED STATES OF AMERICA STATE OF TEXAS CITY OF LUBBOCK,. TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATE OF OBLIGATION SERIES 1986 Certificate Date: Interest Rate: Stated Maturity: July 15, 1986 As shown below As shown below Registered Owner: Principal Amount: Four Million Two Hundred Thousand Dollars The City of Lubbock (hereinafter referred to as the "City"), a body corporate and municipal corporation in the County of Lubbock, State of Texas, for value received, acknowledges. itself indebted to and hereby promises to pay, without right of prior redemption, to the order of the the Registered Owner named above, or the registered assigns thereof, on the 15th day of February, in each of the years and in principal amounts and bearing interest at per annum rates in accordance with the following schedule: Year of Stated Maturity 1987 1988 1989 .1990 1991 Principal Amount $725,000 775,000 850,000 900,000 950,000 Interest Rate -----% % ----% % -----% ----- and to pay interest on the unpaid principal amounts· hereof from the Certificate Date at the per annum rate(s) of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February 15 and August 15 of each year, commencing February 15, 1987. Principal of this Certificate shall be payable to the registered owner hereof, upon presentation and surren- der, at the principal office of Texas Commerce Bank, .... . . National Association, Lubbock, Texas (the "Paying Agent/ Registrar''). Interest shall be payable to the registered owner of this Certificate whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date hereof. All payments of principal of, premium, if any, and interest on this Certificate shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts and interest shall be paid by the Paying Agent/Registrar by check sent by United States Mail, first class postage prepaid, to the address of the register- ed owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. This Certificate is issued in the aggregate principal amount of $4,200,000 (herein referred to as the "Certificates") for the purpose of paying contractual obligations incurred with respect to (i) the purchase of (a) land for authorized needs and purposes, to wit: a sewer farm, and (b) materials, supplies, and equipment, in connection therewith, and (ii) professional services, under and in strict conformity with the Constitution and laws of the State of Texas, particularly Article 2368a.l, V.A.T.C.S. and pursuant to an ordinance adopted by the governing body of the City (hereinafter referred to as the "Ordinance"). This Certificate is payable from the proceeds of an ad valorem tax lev.ied, within the limitations prescribed by law, upon all taxable property in the City and are addition- ally payable from and secured by a lien on and pledge of the Net· Revenues (as defined in the Ordinance) of the City's Sewer System (the "System"), such lien and pledge being subordinate to the lien and pledge of the Net Revenues securing the payment of the Prior Lien Obligations (identi- fied and defined in the Ordinance). In the Ordinance, the City reserves and retains the right to issue additional certificates equally· and ratably secured with the Certifi- cates by a parity lien on and pledge of the Net Revenues. . . . Reference is hereby made to the Ordinance, of which is on file in the principal office of the Paying Agent/ Registrar, and to all of the provisions of which the registered owner by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied for the payment of the Certificate; the properties constituting the System; the Net Revenues pledged to the payment of the principal of and interest on this Certificate; the nature, extent, and manner of enforcement of the pledge; the terms and conditions relating to the transfer or exchange of this Certificate; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the registered owners; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon which the tax levy and the liens, pledges, charges, and covenants made therein may be discharged at or prior to the maturity of this Certificate, and this Certificate deemed to be no longer Outstanding thereunder; and for the other terms and provisions thereof. Capitalized terms used herein have the meanings assigned in the Ordinance. ·This Certificate, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register only upon its presentation and surrender at the principal office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Certificates of the same Stated Maturity, of authorized denorrinations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. The City and. the Paying Agent/Registrar, and· any agent of either, may treat the registered owner hereof whose name appears on the Security Register (i) on the Record Date as the owner entitled to the payment of the interest hereon, (ii) on the date of surrender of this .Certificate as the owner entitled to the payment of the principal hereof at its Stated Maturity, and (iii) on any other date as the owner for all other purposes, and neither. th~ City nor the Paying Agent/Registrar 1 or any agent of either, shall be affected by notice to the contrary. In the event of a non-payment of interest on a scheduled payment date, and for thirty {30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar 1 if and when funds for the payment of such interest have been received from the City. Not ice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each registered owner appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, recited, represented, and covenanted that the City is a duly organized and legally existing municipal corporation under and by virtue of the constitution and laws of the State of Texas; that the issuance of the Certificates is duly authorized by law; that all acts, conditions, and things required to exist and be done precedent to and in the issuance of the Certificates to render the same lawful and valid obligations of the City have been properly done, have happened, and have been performed in regular and due time, form, and manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that the Certificates do not exceed any constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Certificates by the levy of an ad valorem tax and a pledge of and lien on the Net Revenues of the System as aforestated. In case any provision in this Certificate or any application thereof shall be invalid, illegal, or unenforceable, the validity, legality, and enforceabi 1 i ty of the remaining provisions and applications shall not in any way be affected or impaired thereby. The terms and provisions of this Certificate and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. , . IN WITNESS WHEREOF, the City Counci 1 of the City has caused this Certificate to be duly executed under the official seal of the City as of the Certificate Date. COUNTERSIGNED: ,, \!l#tJ,,,,, (CITY .SEAil) > 1 '',, ,' ') I') I o ', 'l ,' '~) -.·,\.~~·1-·~,'_') ' .... ' \ ' . ,' \ . ) : . . \ ' ' . . ' '; CITY OF LUBBOCK, TEXAS Mayor AFFIDAVIT OF PUBLICATION THE STATE OF TEXAS § § COUNTY OF LUBBOCK § § CITY OF LUBBOCK § BEFORE ME, the undersigned authority, sonally appeared B'ev'er'lr Harper I who, duly sworn_,k depa1ses hand says that (s)he is lubbo~ ~va anc e the Journal and that a true and correct copy of the "NOTICE OF SALE" hereto attached, was published in said newspaper on the following dates: June 2 9 , 19 8 6 ; July 6,, 1986; July 13, 1986; July 20, 1986; and July 27, 1986 the date of the first of such publications being at least thir- ty (30) days prior to the date of the public sale for the cer- tificates of obligation referred to therein. SWORN TO AND SUBSCRIBED BEFORE ME, this the 28thday of ----~J~u~I~Y _________ , 1986. (Notary Seal) 1 7 3 0 E Notary Public, State of Texas q~ My Commission Expires: 1-JD\J,q / OQ ···) ' . ~. 'GrENDA RASCO / , llotar~ Pubhc In And For The State OfTcx.r.s , My Commi!.~ion bpuec; Nov. 9. LdB THE STATE OF TEXAS COUNTY OF LUBBOCK M2320-R252 Before me G I end a R a' co a Notary Public in and for Lubbock County. Texas on this day personally appeared Twil a Auf il I • Ac count Manal!e r of the Southwestern Newspa- pers Corporation. publishers of the Lubbock Avalanche-Journal -Morning. Evening and Sunday, who being by me duly sworn did depose and say that said newspaper has been published continuously for more than fifty-two weeks prior to the first inser¥g'S~~~his _ .... L .... e...,f! .... a._.I.__.N_..ooo..a.t ... i..,.c .... e _________ _ --------------No. at Lubbock County, Texas and the attached print- ed copy of the Lea! a I No:t 1 C e is a true copy of the original and was printed in the Lubbock Avalanche-Journal.Qn the follQ:Y'tinstdates: Auerus.t 1 and August 3, 1986 104 words @ 76t = $79.u4 ,.~,~~~~ Account Manal!er LUBBOCK AVALANCHE-JOURNAL Southwestern Newspapers Corporation Subscribed and sworn to before me this 4th day of FORMiS-10 GLHlDA RASCO --· Notary Public 1~ 1\nd fGr Ili,)tate t!1 le~as M~ Comn'.l~~ioo hplre·. Nov. 9, 1983 AUI!U& t : 19 86 --'