1985-08-28 Special Called Meeting

Browse Search

~ • SELECTED PROVISIONS OF THE REVENUE BOND ORDINANCE The Revenue Bond Ordinance (the "Bond Ordinance") authorizes the issuance and sale of the Bonds and prescribes terms, conditions and provisions for the payment of the principal of and interest on the Bonds by the City. Set forth below is a summary of certain provisions of the Bond Ordinance. Paragraph headings are supplied for ease of reference and are not contained in the Bond Ordinance. Such summary is not a complete description of the entire Bond Ordinance and is qualified by reference to the Bond Ordinance, copies of which are available from Moroney, Beissner 6 Co., Inc., the City's Financial Advisor, upon request. nefi~t}inns The following terms shall have the respective meanings specified: (a) The term "Additional Bonds" means the additional bonds and other evidences of indebtedness which the City reserves the right to issue. (b) The terms "interest and Sinking Fund and "Reserve Fund" mean the funds provided for in this Ordinance. (c) The term "Bonds" shall mean the $6,000,000 of Bonds authorized by this Ordinance. (d) The term "City" refers to the City of La Porte, Texas, or where appropriate to the City Council thereof. le) The term "City Council" shall mean the City Council of the City. (f) The term "Net Revenues" as used in this Ordinance shall mean the gross revenues of the System less the reasonable expenses of operation and maintenance, including all salaries, labor, materials, repairs and extensions necessary to render efficient service; provided, however, that only such repairs and extensions, as in the judgment of the City Council, reasonably and fairly exercised, are necessary to keep the plant or utility in operation and render adequate service to the City and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise impair the Bonds authorized by this Ordinance and any additional bonds permitted to be issued hereunder, shall be deducted in determining "Net Revenues." (g) The term "Paying Agent/Registrar" shall mean, initially, First City National Bank of Houston, Houston, Texas, or any successor appointed hereunder in its capacity as such. (h) The term "System" as used in this Ordinance shall mean the City's Waterworks and Sewer System, including all present and future extensions, additions, replacements and improvements thereto. (i) The term "System Fund" shall mean the fund provided for in this Ordinance. Pledge of Revenues The Bonds, any Additional Bonds and the interest on all such Bonds, are and shall be payable from and secured by an irrevocable first lien on and pledge of the Net Revenues of the System, and the Net Revenues are hereby pledged irrevocably for the payment and security of the Bonds, any Additional Bonds and the interest on all such Bonds. Rate Covenant The City covenants and agrees with the holders of the Bonds and Additional Bonds, if and when issued, that it will (a) fix and maintain rates and collect charges for the facilities and services afforded by the System which will provide revenues sufficient at all times: (1) To pay all operation, maintenance, depreciation, replacement and betterment charges of the System; (2) To establish and maintain the Interest and Sinking Fund and Reserve Fund; . ~~