1985-08-28 Special Called Meeting

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Payment Record The City has never defaulted on Revenue Bonda. BOND COUNSEL • Messrs. Baker b Botts, Houston, Texas, have acted as bond counsel in connection with the authorization, issuance, sale and delivery of The Bonds. In this capacity, such firm Has reviewed the information appearing in this "Official Statement" under the caption entitled "Description of Bonds," solely to determine whether such description conforms to the provisions of the ordinance authorizing the issuance and sale of the Bonds. Such firm has not independently verified any of the factual information contained in this "Official Statement," nor has it conducted an investigation of the affairs of the City for the purpose of passing upon the accuracy or completeness of this "Official Statement." No person is entitled to rely on such firm's limited participation as an assumption of responsibility for, or an expression of opinion of any kind with regard to the accuracy or completeness of any of the information contained herein. The legal fees to be paid Messrs. Baker 6 Botts for services rendered as bond counsel in connection with the issuance and sale of the Bonds are contingent upon the Bonds actually being issued, sold and delivered. RATINGS The outstanding General Obligation Bonds of the City are rated "A" by Moody's Investors Service, Inc. and "A+" by Standard b Poor's Corporation (the "Rating Agencies"). Applications for contract ratings on the $5,000,000 General Obligation Bonds, Series 1985, and the $6,000,000 Waterworks and Sewer System Revenue Bonds, Series 1985, have been made to both Moody's Investors Service, Inc. and Standard 6 Poor's Corporation (the "Rating Agencies"). The new ratings will be provided by addendum to this "Official Statement" as soon as possible after their assignment. An explanation of the significance of the ratings may be obtained from the Rating Agencies. The ratings reflect only the respective views of the Rating Agencies and the City makes no representation as to the appropriateness of the ratings. There is no assurance that the ratings assigned will continue for any given period of time or that they will not be changed, suspended or withdrawn by either of the Rating Agencies. Any change, suspension oz withdrawal of the ratings may have an effect on the market price of the Bonds. REGISTRATION Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA"), as amended, mandates, among other things, that all municipal bonds (excepting those with a one year maturity •. or less) must be in fully registered form beginning July 1, 1983. Paving Agent/Registrar (the "Registrar") 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 Houston, 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 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. Successor Paying Agent/Registrar Provision is made in the ordinance authorizing the issuance of the Bonds (the "Bond Ordinance") for replacement of the Registrar. If the Registrar is replaced by the City, the new Registrar shall accept the previous Registrar's records and act in the same capacity•as the previous Registrar. Any Registrar selected by the City shall be either a national or state banking institution and shall be a corporation organized and doing business under the laws of the United States of America or of any State, authorized under such laws to exercise trust powers, and subject to supervision or examination by Federal or State authority. Successor Registrars, if any, shall be determined by the City. ~~