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HomeMy WebLinkAboutR-1962-07 ,.'- ~. . .. ----------... e' ....----.-... , . .. . 1.. - e REOOLUTION NO. 4 - 62 RESOLUTION AUTHORIZING THE GIVING OF NOTICE OF INTENTION TO ISSUE REFUNDING BONDS; AND CONTAINING OTHER PROVISIONS RELATING THERETO THE STATE OF TEXAS ~ COUNTY OF HARRIS ~ The City Commission of the City of La Porte, Texas, convened in specia1 session at the City Hall within said City on the 16th day of July, 1962, with the following members present, to-wit: H. P. Pfeiffer Mayor W. A. Stabs, Jr. Commissioner and Mayor Pro Tern Tom W. Osburn Commissioner Odell L. Brown Commissioner Dennis Dunham Commissioner Clovis Mann City Clerk and the following member(s) absent, to-wit: None , when:, among other business had, the following was transacted: The Mayor introduced a resolution which was read in full. Commissioner Osburn made a motion that the reso- lution be adopted as read. Commissioner Dunham seconded the motion for adoption of the resolution. The motion, carrying with it the adoption of the resolution, prevailed by the following vote: AYES: Commissioners Stabs, Osburn, Brown, Dunham, and Mayor Pfeiffer. NOES: None. , The Mayor thereupon announced that the motion had duly and lawfully carried, and that the resolution had been duly and lawfully adopted. The resolution thus adopted follows: -.,. ..------- ,.. "----. ,., , 'e '''''--'. e t.... . ." e e ResoLution No. 4-62 Page 2 of 4 RESOLUTION AUTHORIZING THE GIVING OF NOTICE 9F INTENTION TO ISSUE REFUNDING BONDSj AND CONTAINING OTHER PROVISIONS RELATING THERETO WHEREAS, the following time warrants of the City of La Porte, Texas, are outstanding and unpaid: CITY OF LA PORTE SEWER SYSTEM TIME WARRANTS, SERIES 1962, dated January 15, 1962, Warrants Nos. 1 to 41, both inclusive, in the denomina- tion of $1,000 each, aggregating $41,000, bear- ing at the rate of 6% per annum, and maturing serially on July 15th in each of the years 1965 to 1969, both inclusive, and are valid and binding obligations of said CitYj and WHEREAS, the owner and holder of said outstanding time. warrants has agreed to surrender the same in exchange for refunding bonds of said CitYj and WHEREAS, the City Commission wishes to proceed with the authorization of the giving of notice of intention to issue such refunding bondsj Therefore BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LA PORTE: Section 1: Tha.t the Mayor and City Clerk of the City of La Porte, Texas, are hereby authorized and directed to cause a notice in substantially the following form to be published once , a week ~or three (3) consecutive weeks in THE LA PORTE LIBERAL, which is a newspaper published in and of general circulation in said City and is the official newspaper of said City, the first publication to be at least thirty (30) days before date of the meeting of the City Commission specified in said notice at which it is proposed to authorize such refunding bonds, to-wit: /..--.. ..........., .' ,~, . ,. ---- e ....-----........ . . ,.~ .. .J' . e Resolution No. 4-62 Page 3 of 4 Section 2: That this resolution shall be effective upon and after its adoption. PASSED AND APPROVED this 16th day of July, 1962. ~ ;Q;!~ City Clerk (SEAL) -.. '. , ~ ,. :: -=: :..~ :: <.>: .,:;;/ .... -' ~-', .., .-- '. . .....---....", .. - ,'. ... .,~-" : . ~" ~..... ,~ e Resolution No. 4-62 "Notice of Intention" Page 4 of 4 .e: NOTICE OF INTENTION TO ISSUE REFUNDING BONDS OF THE CITY OF LA PORTE, TEXAS TO THE QUALIFIED PROPERTY TAXPAYING VOTERS OF THE CITY OF LA PORTE, TEXAS, AND TO ALL OTHER INTERESTED PERSONS: NOTICE IS HEREBY GIVEN that it is the intention of the City Commission of the City of La Porte;' Texas, at a meeting thereof to be held on the 7th day of September ,1962, to authorize the issuance of refunding bonds of said City in the maximum amount of $41,000, bearing interest at a rate not to ex- ceed 5% per annum, and maturing serially over a period not to exceed 10 years from the date of such refunding bonds, with a maximum maturity date of September 1, 1972, said refunding bonds to be issued for the purpose of refunding, cancelling, and in lieu of a like principal amount of outstanding indebtedness of said City, to-wit: $41,000 City of La Porte Sewer System Time Warrants, Series 1962, dated January 15, 1962, bearing interest at the rate of 6% per annum: By order of the City Commis~ion of the City of La Porte, Texas. Mad (J(j f/-if &u~J City Clerk ~ , ". ~, I. '., .~ . ./'~ e. /~. e: ' t", ..- ,;:.... trJ,;~ :-" Ir '{ l; ~. ~_.l , ... e . Honorable r1a.yor and Members of the City Council La Porte, Texas Gentlemen: In connection with the presently outstanding $338,000 of Water- works and Seuer System Revenue Bonds I recommend that these bonds be re- funded for the rollowing reasons and in the follo~ing manner: 1) The presently outstanding bonds prevent the issuance of any additional bonds payable out of the revenues of the Water and Sewer System. This restriction cannot be removed without refunding all of the outstand- ing bonds. 2) The interest rates on the outstanding bonds are extremely favorable in that these bonds were sold in about 1950, at which time in- terest rates were at a lower point than they have ever been since that time. However, at the present time I can either exchange refunding bonds for the presently outstanding bonds or purchase proposed new refunding bonds at a price of par and accrued interest at interest rates shown on the attach- ed schedule. If this refunding is delayed until March, 1963, we may find that we are unable to refund because state statutes will not permit an increase in interest rates unless there be a savings in total interest cost. The test could be extremely difficult to meet if interest rates in general should be higher next March than they are at this time. I believe we should take advantage of the present market. 3) I 'Will make a sincere effort to effect an exchange of the new refunding bonds for the presently outstanding bonds offering the present holders, as inducement, a cash bonus of not more than an amount equal to interest to March 15, 1963. 4) The City Council agrees to make available, out of monies presently held in the Revenue Bond Reserve Fund, $11,483 for this purpose. This is interest from March 15, 1962 to and including 11arch 15, 1963. ". ....- /'~- --" ,/ \ .... ....r--.... . /~, .' e . 5) The interest rates on the proposed refunding bonds will be as show:J. on the attached schedule. 6) It is recommended that the City, out of the balance of funds in the Bond Reserve Fund, after making available the $11,483 shown above ni11 use $3,000 of this money to retire and cancel $3,000 of the outstanding debt. It Vli11 then pay all costs incident to the refunding. These are estimated to be ~,OOO. Out of the remaining monies the City should deposit $3,000 to a new Interest and Sinking and Reserve Fund. Additional monies remaining in this account can be used by the City in the Waterworks and Sewer Department. 7) T.ae terms and conditions of the refunding bonds shall be such that the City can, at any time, authorize, issue and deliver addi- tio_"cal bonds payable out of the net revenues from the Waterworks and Sewer System provided the following tests are met: (a) That the City is current on all of its pa;yments to the Interest, Sinking and Reserve Funds and on all pa;yments of principal and intem st on its debt. (b) That the net revenues from the operation of the \'later- works and Sewer System available for debt service, as shown by the last armual audit, are at least 1-1/2 times the principal and interest requirements on all bonds outstanding, together with all bonds proposed to be issued for the year in which these requirements are the greatest. This refunding will be carried out under the terms and conditions of contract between the City of La Porte and myself dated February 6, 1959. this the Texas ~ day of ~, \ . ..~ ~~R~:. . .,.,.:;. ~ ..... C:. ty Cl:er -:,..-....... r . ~ ",.,"':; o. , '- v .I( ..;. .......,,~,. . . e e ~3j .~ -- / " . \ . $325,000 CITY OF LA PORTE, TEXAS Y1ATERWORKS AND SEWER REFUNDING BONDS SERIES 1962 Total Coupon Present Year Rate Princinal Interest Total Requirements 1963 2-1/2% $ 5,000 $11,387.50 $16,387.50 $27,483 1964 2-3/4% 15,000 11,262.50 26,262.50 27,918 ~, 1965 2-3/4% 15,000 10,850.00 25,850.00 27,328 \. \ 1966 2-3/4% 15,000 10,437.50 25,437.50 27,718 1967 2-3/4% 15,000 10,025.00 25,025.00 27,080 1968 3-1/2% 15,000 9,612.50 24,612.50 27,450 1969 3-1/2% 15,000 9,087.50 24,087.50 27,775 1970 3-1/2% 20,000 8,562.50 28,562.50 28,073 1971 4% 20,000 7,862.50 27,862.50 27,515 1972 4% 25,000 7,062.50 32,062.50 27,965 1973 4% 25,000 6,062.50 31,062.50 28,205 1974 3-1/2% 25,000 5,062.50 30,062.50 28, 410 /...-~, 1975 3-1/2% 25,000 4,187.50 29,187.50 27,588 . 1976 3-1/2% 25,000 3,312.50 28,312.50 27,765 ....-.. 1977 3- 3/ 4% 25,000 2,437.50 27, 437 . 50 27,908 1978 3-3/4% 25,000 1,500.00 26,500.00 28,015 1979 3-3/4% 15,000 562.50 15,562.50 -0- ~ " .'