HomeMy WebLinkAboutO-1949-379
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ORDINANCE NO. 379
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REVENUE BOND ORDINANCE
THE STATE OF TEXAS
COUNTY OF HARRIS
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The City Commission of the City of La Porte, Texas, met in
Special session at the City Hall within said city on the
28th day of
June
, 1949, with the following members pre-
sent, to-wit:
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. H. F. Pfeiffer
James S. Crate, Jr.
Wm. P. Jones
J. E. Muldoon
Mayor
Commissioner
Commissioner
City Clerk
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when the following business was transacted:
The Mayor introduced an ordinance which was read in full.
Commissioner
Jones
made a motion that the ordinance be
adopted as read. The motion was seconded by Commissioner
Crate
and carried by the following vote: AYES: Mayor
Pfeiffer, Commissioners Crate and Jones. NOES: None. The
ordinance thus adopted follows:
AN ORDINANCE AUTHORIZING THE ISSUANCE OF A
$100,000 INSTALLMENT OF A $500,000 ISSUE OF
WATERWORKS AND SEWER SYSTEM REVENUE BONDS;
MAKING PROVISION FOR THE PAYMENT OF PRINCI-
PAL AND INTEREST THEREON
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WHEREAS, at an election held in the City of La Porte, Texas,
on the 21st day of February, 1948, more than a majority of the
duly qualified resident electors who 'own taxable property within
said city and who had duly rendered the same for taxation voting
at said election voted in favor of the proposition of issuing
$200,000 waterworks system revenue bonds and $300,000 sewer
system revenue bonds; and
WHERE,,,flS, the resolution and order calling said election
provided that if ,both propositions for the issuance of said
bonds were adopted, said City Commission should have the right
to issue combined waterworks and sewer system revenue bonds in
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the maximum amount of $500,000, and to pledge the net revenues
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of the Waterworks and Sewer System to the payment of the prin-
cipal of and interest on said bonds; and
WHEREAS, the City Commission of the City of La Porte, Texas,
by ordinance, adopted on the 16th day of March, 1948, did combine
said bonds into one issue and at that time authorized the issu-
ance of $250,000 waterworks and sewer system revenue bonds ap-
proved at said election, numbered from 1 to 250, both inclusive,
and provided that the remaining $250,000 of said bonds may be
issued and sold by the city and such bonds, when issued and
sOld,. shall be on a parity with any bonds of said issue previously
authorized, provided, however, the city shall not issue and sell
any of such remaining bonds authorized at said election held on
February 21, 1948, until such time as the annual revenues of the
system, after deducting the reasonable cost of operating and
maintaining the system, as shown by three years historical net
earnings of the system, will equal at least one and one-half, times
the maximum annual requirements of principal and interest on the
outstanding bonds of the series herein previously authorized, and
such additional'bonds authorized at such election to be issued
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and soldj and
'--"" WHEREAS, the City Commission is of the opinion that at
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purpose of constructing extensions and improvements to the city's
existing waterworks system and sewer systemj is of the further
op;nion that it is now necessary and proper that the City Commis-
sion proceed with the issuance of revenue bonds in the amount of
$100,000 out of the remaining $250,000 as originally set forth
in said ordinance adopted on the 16th day of March, 1948; and
WHEREAS, inasmuch as no part,of the $250,000 authorized at
said election and by said ordinance of the City Commission dated
the 16th day of March, 1948 (but not sold. and delivered at that
time) has been printed and app~oved by the Attorney General of
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the state ot Texas, registered or sold and delivered 1 and the
City Commission has full authority to authorize such additional
bonds, and desires at this time to authorize the issuance ot a
$1001000 installment ot the remaining $2501000; Theretore
BE IT ORDAINED by theCity Commission ot the City 01' La
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Porte, Texas:
Section 1: That the bonds 01' the City ot La Porte, Texas be
issued in the principal sum ot $100,000, to be known and desig-
nated as "CITY OF LA PORTE WATERWORKS AND SEWER SYSTEM REVENUE
BONDS1 SERIES 1949", tor the purpose ot constructing extensions
and improvements to the waterworks system and the city's existing
s~wer system, under and in strict contormity with the Constitu-
tion and laws 01' the State ot Texasl particularly Articles 1111
to 11181 both inclusive, ot the Revised Civil Statutes ot Texas,
19251 as amended, and as authorized at a bond election held
within said city on the 16th day ot March, 1948.
Section 2: Said.'bonds shall be dated March 15, 1949, shall be
numbered trom 1 to 100, both inclusivel shall be in the deno-
mination ot $11000 each, aggregating $1001000. These bonds are
a second installment ot an issue ot $500,000, and an initial
installment of $250,000 has previously been sold and delivered
by said city. This second installment in the principal amount
ot $1001000 shall become due and payable on the 15th day ot March
in each 01' the years and in the respec~ive amounts shown in the
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following schedule, to-wit:
Bond Nos. Maturity Amount
1 - 2 March l~, 1951 $ 2,.000
3 - 4 " 1952 2,000
5 - 6 " " 195~ 2,000
7 - 8 " " 195 21000
9 - 10 " " 1955 2,000
11 - 12 " " 1956 21000
13 '- 14 It " 1957 2,000
15 - 16 It " 1958 2,000
17 18 It It 1959 21000
19 - 21 " " 1960 3,000
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~ Bond Nos. Maturity Amount
", .-..-'" 22 - 24 March l?, 1961 $ 3,000
25-- 27 " , 1962 3,000
28 - 30 " 196~ 3,000
31 - 33 " 196 3,000
34 - 36 " 1965 3,000
~7 -- i9 11 1966 3,000
0-2 " 196~ 3,000
43 - 45 11 196 3,000
46 - 48 11 " 1969 ~,ooo
49 - 52 " n 1970 ,000
53 - 56 " " 1971 4,000
57 - 60 " " 1972 4,000
61 64 " " 197~ 4,000
65 68 " " 197 4,000
69 - 72 " " 1975 4,000
73 - ~6 " " 1976 4,000
77 - 0 " " 1977 4,000
81 - 100 " " 1978 20,000
.- The City ot La Porte reserves the right to redeem in inverse
'",- numerical order, all or any part ot said bonds then outstanding
on March 15, 1963, or on any interest payment date thereatter by
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paying to the owners and holders ot said bonds the principal
thereot plus accrued interest to the date tixed tor redemption.
It the city elects to redeem all or any part ot sai~onds,
notice thereot in writing shall be mailed, properly 'stamped and
addressed, to the First National Bank, La Porte, Texas, and shall
be published at least one time in a tinancia1 journal published
in New York, New York, and ot general circulation in the United
Statesot America and said notice shall be mailed and published
! at least thirty (30) days before the date tixed for redemption.
When said bonds, or any part thereot, have been called tor redemp-
tion and notice thereot given as herein specitied and due provi-
sion has been made to redeem the same, the right ot the owners
and holders to collect interest which would otherwise accrue,
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shall terminate as ot the date tixed tor redenption.
Section 3: Said bonds shall bear interest from March 15, 1949
at the rate ot tour (4%) per cent per annum, interest payable
September 15, 1949 and semi-annually thereatter on March 15th
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and September 15th 1n each yearunt11 the pr1nc1pal sum is pa1d.
Both pr1ncipal and 1nterest shall be payable in lawful money of
the Un1ted States of America at the First Nat10nal Bank, La
Porte, Texas, and interest fall1ng due on and prior to maturity
shall be payable only upon presentation and surrender of the
interest coupons attached to said bonds as they severally become
due.
Section 4: That each of said bonds shall be s1gned by the Mayor,
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counters1gned by the City Clerk, and the corporate seal of the
c1ty shall be 1mpressed upon each of sa1d bonds. The facs1mile
s1.natUres of the Mayor and City Clerk may be li.thographed,
engraved, or pr1nted upon the coupons attached to sa1d bonds and
'shall have the same effect as 1f they had been signed by sa1d
officers.
Section 5: The form of said bonds shall be substant1ally as
tollows:
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No.
$1,000.00
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UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF HARRIS
CITY OF LA PORTE WATERWORKS AND SEWER SYSTEM REVENUE BOND
SERIES 1949
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The City of La Porte, in the Countrof Harris, in the 'State
of Texas, tor value rece1ved, hereby aCknowledges 1tself indebted
to and promises to pay to the bearer on the 15th day of March,
19_, the sum of
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ONE THOUSAND DOLLARS
($l,OOO~OO), in lawful money of the Un1ted States of
America with interest thereon from the date hereof at
the rate of 4~ per annum, payable Sep~ember 15, 1949,
and semi-annually thereafter on March 15th and September
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l~th in each year, until the principal sum shall be paid. Inter-
est falling due on and prior to maturity is payable only upon
presentation and surrender of the interest coupons attached here-
to as they severally become due and all interest shall be payable
only from the special fund hereafter specified, both principal
and interest being payable at the First National Bank, La Porte,
Texas.
The date of this bond, in conformity with the ordinance
hereafter mentioned, is March 15, 1949.
This bond is one of a series of one hundred (100) bonds of
like date and tenor, except as to number, maturity, interest rate
and option of redemption before maturity, numbered from 1 to 100,
both inclusive, in the denomination of $1,000 each, aggregating
$100,000, and is issued for the purpose of constructing exten-
sions and improvements to the waterworks system .and the sewer sys-
tem of said city, under and in strict conformity with the Consti-
tution and laws of the State of Texas, particularly Articles 1111
to 1118, both inclusive, of the Revised Civil Statutes of Texas,
1925, as amended, and by the authority of a vote of the duly qua-
lified resident electors of said city who own taxable property
within said city and who had duly rendered the same for taxation,
at an election held on the 21st day of February, 1948, and pur-
suant to an ordinance passed by the City Commission of the City
of La Porte, Texas, duly recorded in the minutes of said City
Commission. or the $500,000 bonds authorized by said city at
said election, the City of La Porte has previously sold an ini-
tial instal1mant in the total principal amount of $250,000, and
has authorized this second installment of $100,000 of the remain-
ing $250,000 originally authorized. It has been expressly pro-
I vided that no part of the remaining authorized but unissued
bonds shall be sold and delivered unless the conditions and
restrictions set forth in the original ordinance authorizing the
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issuance of the first installment shall be strictly complied
with, to-wit: That the city shall not issue and sell any of such
remaining bonds authorized at said election held on February 21,
1948, until such time as the annual revenues of the system, after
deducting the reasonable cost of operating and m~intainlng the
system, as shown by three years historical net earnings of the
system, will equal at least one and one-half times the maximum
annual reguirements of principal and interest on the outstanding
bonds of the series previously authorized, and such additional
bonds authorized at said election to be issued and sold.
Bonds Nos. 3J to 100, both inclusive, shall contain the
following provision: The City of La Porte reserves the right to
redeem in inverse numerical order, all or any part of said bonds
then outstanding on March 15, 1963, or on any interest payment
date thereafter by paying to the owners and holders of said bOQds
the principal thereof plus accrued interest to the date fixed
for redemption. If the city elects to redeem all or any part of
~aid bonds, notice thereof in writing shall be mailed, properly
stamped and addressed, to the First National Bank, La Porte,
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Texas, and shall be published at least one time in a financial
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journal published in New York, New York, and of general circula-
tion in the United States of America and said notice shall be
mailed and published at least thirty (30) days before the date
fixed for redemption. When said bonds, or any part thereof, have
been called for redemption and notice thereof given as herein
specified and due provision has been made to redeem the same, the
right of the owners and holders to collect interest which would
otherwiseac.c~u~, shall terminate as of the date fixed for re-
demption.
Each successive holder of this bond and each successive
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holder of the coupons hereto. attached is conclusively presumed to
forego and renounce his equities in favor of subsequent holders
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for value without notice, and.to agre~ that this bond and each of
the coupons hereto attached may be negotiated by delivery by any
person having possession thereof, howsoever such possession may
have been acquired, and that any holder who shall have taken this
bond or any of the coupons from any person, for value and without
n."~e, thereby has acquired absolute title thereto, free from
any defenses enforceable against any prior holder and free from
all equities and claims of ownerShip of any such prior holder.
The City of La Porte and its officers and fiscal agent shall not
be.affected by any notice to the contrary.
This bond shall not be deemed to constitute a debt of the
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City of La Porte or a pledge of its faith and credit, but shall
be payable as to principal and interest solely from the net reve-
nues derived from the operation of the city's waterworks and
sewer system, including all additions, extensions and improvements
thereto which may hereafter be made, after deduction of thema-
sonable expenses of maintenance and operation of said system.
The holder hereof shall never have the right to demand payment of
this obligation out of any funds raised or to be raised by taxa-
tion.
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It is hereby certified, recited and represented that the
issuance of this bond and the series of which it is a part is duly
authorized by law; that all acts, conditions and things required
to exist and to be done precedent to and in the issuance of this
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series of bonds to render the same lawful and valid, have been
properly done and performed and have happened in regular and
due time, form and manner, as required by law; that due provision
has been made for the payment of the principal and interest of
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this bond and the series of which; it, is a part by irrevocably
pledging the net revenues of the waterworks and 'sewer system;
that the issuance of thie series of bonds does not exceed any
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IN TESTIMONY WHEREOF, the City Commission ot the City of La
Porte, Texas has caused the corporate seal of said city to be
affixed hereto and this bond to be signed by the Mayor of said
clty, countersigned by the City Clerk, and has caused the an-
nexed coupons to be signed by the facsimile signatures of said
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Mayor and City Clerk, all as of the 15th day of March, 1949.
Mayor, City ot La Porte, Texas
Countersigned:
City Clerk, City of La Porte, Texas
Section 6: The form of coupon to be attached to said bonds shall
be substantially as follows:
No.
$
On the 15th day of ,19 , * the City ot La
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Porte, in the County ot Harris, in the State of Texas, promises
to pay to bearer at the First National Bank, La Porte, Texas,
the sum of ($)
Dollars in lawful money of the United States of America, soleiy
trom the special fund specified .in the bond to which this .ou-
pon is attached, said sum being the interest due that day on the
City of La Porte Waterworks and Sewer System Revenue Bonds,
Series 1949, dated March 15, 1949. The holder hereof shall never
have the right to demand payment of this obligation out of any
funds raised or to be raised by taxation. Bond No. .
Mayor
City Clerk
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*(Bonds Nos. 31 to 100, both inclusive, shall contain the
following additional clause:
unless said bonds shall have been called for previous re-
demption as herein provided and due provision has been made for
the redemption thereof,)
Section 7: That substantially the following certificate shall
be printed on the back of each of said bonds:
OFFICE OF THE COMPTROLLER
REG ISTER NO.
THE STATE OF TEXAS
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I hereby certify that thereis on file and of record in my
office a certificate of the Attorney General of the State of Texas
to the effect that this bond has been examined by him as required
by law, and that he finds that it has been issued in conformity
with the Constitution and laws of the State of Texas, and that it
is a valid and binding special obligation of said City of La
Porte, Texas, payable from the revenues pledged to its payment
by and in the ordinance authorizing same, arid said bond has this
day been registered by me.
WITNESS my hand and seal of office at Austin, Texas, this
day of
, 1949.
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Comptroller of Public Accounts
of the State of Texas
Section 8:
That said bonds shall be issued upon the terms and
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conditions contained in Sections VIII, IX, XI XI, XII and XIIII
inclusive, of the bond ordinance enacted by the City Commission
of the City of La Porte, Texas, on the 16th day of March, 1948,
being captioned as follows: "AN ORDINANCE BY THE CITY COMMISSION
OF THE CITY OF LA PORTEI TEXAS, AUTHORIZING THE ISSUANCE OF THE
CITY OF LA PORTE WATERWORKS AND SEWER SYSTEM REVENUE BONDS,
SERIES 1948, IN THE M40UNT OF $250,000, FOR THE PURPOSE OF CON-
STRUCTING EXTENSIONS AND IMPROVEMENTS TO 'THE WATERWORKS SYSTEM
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AND TO THE SEWER SYSTEM OF SAID CITY; PRESCRIBING THE FORM OF
BOND AND INTERES~ COUPON; PLEDGING THE REVENUES OF THE WATERWORKS
SYSTEM AND THE SEWER SYSTEM OF SAID CITY TO PAY THE PRINCIPAL OF
AND INTEREST ON SAID BONDS AFTER PROVIDING FOR THE EXPENSES OF
OPERATING SAID SYSTEMS; MAKING CERTAIN COVENANTS OF SAID CITY
WITH REFERENCE TO THE BOND FUND FROM WHICH SAID PRINCIPAL AND
INTEREST ARE TO BE PAID; PROVIDING THAT THE HOLDER OR HOLDERS
OF SAID BONDS SHALL NEVER HAVE THE RIGHT TO DEMAND PAYMENT OF
SAID OBLIGATIONS OUT OF ANY FUNDS RAISED OR TO BE RAISED BY
TAXATION; MAKING CERTAIN PROVISIONS WITH REFERENCE TO THE ISSU-
ANCE OF THE RE~~INING BONDS AUTHORIZED AT THE ELECTION HELD
ON FEBRUARY 21, 1948, AND DECLARING AN EMERGENCY", except where
the designated provisions of said bond ordinance of the 16th day
of March, 1948, are inconsistent and in conflict with the terms
of this ordinance, in which event the provisions of this ordin-
ance shall govern.
Section 9: When said bonds have been approved by the Attorney
General of Texas and registered by the Comptroller of Public Ac-
counts of Texas, they shall be delivered to the purchaser upon
receipt of the purchase price. The Mayor, City Clerk and City
Treasurer are authorized and directed to do any and all things
necessary and/or convenient to carry out the provisions of this
ordinance.
PASSED and APPROVED this ~ay of
, 1949.
ATTEST:
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1VI y6r, ty / '. orte, Texas
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