1985-08-28 Special Called Meeting

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• • DESCRIPTION OF REVENUE BONDS $6,000,000 CITY OF LA PORTE, TEXAS (Barrie County) WATERWORKS AND SEWER SYSTEM REVENIIE BONDS SERIES 1985 The Bonds will be dated September 15, 1985 and interest on the Bonds will be due on March 15, 1986, and each September 15 and March 15 thereafter until the earlier of maturity or prior redemption. The Bonds will be issued in fully registered form in ~- integral multiples of $5,000, and principal and semi-annual interest will be payable by the First City National Bank of Housotn, Houston, Texas, the paying agent/registrar (the "Registrar"). Principal of the Bonds will be payable to the registered owner at maturity or redemption upon presentation of such Bonds to the Registrar. Interest on the Bonds will be payable by check or draft, dated as of the interest payment date, and mailed by the Registrar to registered owners as shown on the records of the Registrar as of the last business day of the month next preceding each interest payment date. Maturity Schedule The Bonds will mature serially on March 15, $300,000 each year 1986 through 2005. Optional Provisions All Bonds maturing on or after March 15, 1996 are optional for redemption in whole or in part on March 15, 1995 or any interest payment date thereafter at par and accrued interest to the date fixed for redemption. If less than all of the Bonds are redeemed at any time, the particular Bonds to be redeemed shall be selected by the City in integral multiples of $5,000 within any one maturity. The registered owner of any Bond, all or a portion of which has been called for redemption, shall be required to present same to the Registrar for payment of the redemption price on the portion of the Bond so called for redemption and a new Bond in the principal amount equal to the portion of such Bond not redeemed will be issued to such registered owner. Authorization These 56,000,000 Bonds are the first installment sale out of $9,350,000 Revenue Bonds approved at an election held on June 15, 1985 by a majority of the votes cast as follows: Amount Purpose For Against $ 800,000 Waterworks System Improvements 614 208 8,550,000 Sanitary Sewer System Improvements 620 198 $9,350,000 Use of Proceeds The proceeds from the sale of these $6,000,000 Bonds will be used for sewer system improvements. After the issuance and sale of the Bonds, there will remain $3,350,000 Revenue Bonds authorized but unissued. Security These Bonds, in the opinion of Counsel, will constitute valid and legally binding special obligations of the City of La Porte, Texas, payable from and secured by a first lien on and pledge of the revenues derived from the operation of the City's Wateworks and Sewer System, after deduction of the reasonable expenses of maintenance and operation of said system. The owner (owners) of the Bonds shall never have the right to demand payment of the principal and interest on the Bonds out of any funds raised or to be raised by taxation. Legality Attorney General of the State of Texas and Messrs. Baker 6 Botts, Attorneys, Houston, Texas. Payment Record The City has never defaulted on Revenue Bonds.