1985-07-22 Public Hearing and Regular Meeting

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. ~ ~ ORDINANCE NO. /~ ~~ ORDINANCE AUTHORIZING THE DEFEASANCE OF THE CITY'S OUTSTANDING WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1965, AUTHORIZING THE EXECUTION AND DELIVERY OF AN ESCROW AGREEMENT AND DECLARING THAT SAID ORDINANCE SHALL BE EFFECTIVE IMMEDIATELY UPON ITS ADOPTION WHEREAS, the City has heretofore authorized, issued and delivered, and there is currently outstanding, the following series or issue of bonds, to-wit: City of La Porte, Texas, Waterworks and Sewer System Revenue Bonds, Series 1965, dated March 15, 1965, issued in the original aggregate principal amount of $300,000, of which $75,000 principal amount is presently outstanding (hereinafter called the "Defeased Bonds"); and WHEREAS, moneys held in the interest and sinking fund, reserve fund and contingency fund for the Defeased Bonds are more than adequate to provide for the full payment when due of the principal of and interest on the Defeased Bonds, and it appears that it would be advantageous to the City to provide firm banking and financial arrangements for the timely payment in full of the principal of and interest on the Defeased Bonds so that they will not be regarded as outstanding as a matter of law; and WHEREAS, at an election held in the City on the 15th day of June, 1985, the duly qualified resident electors of the City adopted propositions for the issuance of water- works and sewer system improvement revenue bonds and the City Council is now authorized to issue and sell such bonds; and WHEREAS, if the Defeased Bonds remained outstanding, the City might find it difficult, in issuing some or all of such voted revenue bonds, to satisfy certain covenants con- tained in the ordinance authorizing the issuance of the Defeased Bonds; and WHEREAS, First City National Bank of Houston is the Paying Agent for the Defeased Bonds, and the City Council ~~