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HomeMy WebLinkAboutO-1980-1222 . . '. ORDINANCE NO. /~2~ ORDINANCE AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE CITY'S $3,850,000 GENERAL OBLIGATION AND REFUNDING BONDS, SERIES 1980, PROVIDING THE DETAILS RELATING THERETO AND DECLARING THAT SAID ORDINANCE SHALL BE EFFECTIVE IMMEDIATELY UPON ITS ADOPTION 'WHEREAS, pursuant to an election duly called and held in the city of La Porte, Texas, on February 24, 1979, the City Commission of said City was authorized to issue General Obligation Bonds of said City in the aggregate prin- cipal amount of $3,250,000 for various purposes including those named below; and WHEREAS, the City commission of said City has ~ previously authorized and caused to be issued and sold a first installment of said bonds for the purposes and in the amounts, respectively, as follows: $1,250,000 for improve- ments to the City's Waterworks System (the whole amount authorized for that purpose); and $150,000 (out of $2,000,000 authorized) for improvements to the City's Sanitary Sewer System; and WHEREAS, the City commission has determined that it is necessary to issue a second and final installment of tit said bonds in the amount of $1,850,000 for improvements to the City's Sanitary Sewer System; and WHEREAS, the City of Lomax, Texas, has duly authorized, is~ued and delivered its General Obligation Bonds, Series 1980, dated March 1, 1980, in the aggregate principal amount of $2,000,000, which have become the valid and binding obligation of the City of La Porte, by virtue of the consolidation of said City of Lomax into the City of La Porte; and WHEREAS, said Lomax bonds may be redeemed at any time upon thirty (30) days' notice, and the City commission has determined and hereby determines to redeem such bonds in 4It order to achieve a substantial savings in interest expense; and e . e WHEREAS, the city commission desires to proceed with the authorization, issuance and sale of said bonds; therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: section 1: That the coupon bonds of the City of La Porte, Texas (hereinafter called the "New Bonds"), to be known and designated as "CITY OF LA PORTE, TEXAS, GENERAL OBLIGATION AND REFUNDING BONDS, SERIES 1980," are hereby authorized to be issued in the principal amount of $3,850,000 for the following purposes, to-wit: (a) $1,850,000 for the construction of improvements to the City's Sanitary Sewer 4It System (being the second and final installment out of $2,000,000 authorized for such purpose), and (b) $2,000,000 for refunding all of the City of Lomax, Texas, General Obligation Bonds, Series 1980, dated March 1, 1980 (herein- after called the "Lomax Bonds"), under and by virtue of the Constitution and laws of the State of Texas, and.as respec- tively authorized at the bond election held in said city on the 24th day of February, 1979, and by Art. 717k, V.A.T.C.S., as amended. - section 2: That the New Bonds shall be dated August 1, 1980, shall be numbered consecutively from 1 through 770, shall be in the denomination of $5,000 each, and shall mature and become due and payable serially on February 1 in each of the years and in the amounts specified in the following schedule: Year Amount Year Amount 1981 $175,000 1990 $175,000 1982 175,000 1991 175,000 1983 175,000 1992 175,000 1984 175,000 1993 175,000 1985 175,000 1994 250,000 1986 175,000 1995 250,000 1987 175,000 1996 250,000 1988 175,000 1997 275,000 1989 175,000 1998 275,000 1999 275,000 e Provided, however, that the city reserves the right to redeem, in whole or in part, all of the New Bonds -2- e . . maturing in the years 1991 through 1999 on February 1, 1990, or any interest payment date thereafter by paying the princi- pal thereof and accrued interest thereon. If less than all of the New Bonds then outstanding are called for redemption, then such bonds shall be called in inverse numerical order. Notice of such redemption shall be given in writing to Bayshore National Bank, La Porte, Texas, at least thirty (30) days prior to the date fixed for redemption and written notice shall also be given by publishing a copy of said notice in a financial publication of general circulation in .the United states one (1) time at least thirty (30) days 4It prior to the date fixed for redemption. Any bond or bonds called for redemption, due provision for the payment of which having been timely made, shall cease to bear interest from and after the date fixed for redemption. section 3: That the New Bonds shall bear interest per annum from their date until maturity, unless called sooner for prior redemption in accordance with the provi- sions hereof, at the following rates: All bonds scheduled to mature during the years 1981 through 19R4 R.fiO % All bonds scheduled to mature during the years 19Rfi through 19RR 7.fiO % -- All bonds scheduled to mature during the years 1989 through 1993 7.00 % All bonds scheduled to mature c",;.:::-ing the years ;l~9~ through 1,995 - 7.50 % All bonds scheduled to mature during the years !~96 through 19~7 8.00 % . All bonds scheduled to mature during the years 1998 through 1999' 8.25 % with said interest to be evidenced by interest coupons payable on February 1, 1981, and semiannually.thereafter on each August 1 and February 1, until the principal sum is . paid in full. section 4: That the principal of and interest on the New Bonds shall be payable to bearer, in lawful money of the United states of America, without exchange or collection -3- e e charges to the bearer, upon presentation and surrender of 4It proper bond or interest coupon, as the case may be, at Bayshore National Bank, La Porte, Texas, or, at the option of the holder, at First City Bank of La Porte, La Porte, Texas, which banks shall be the paying agents for said bonds. section 5: That each of the New Bonds and interest e coupons shall be signed by the imprinted or lithographed facsimile signature of the Mayor and countersigned by the imprinted or lithographed facsimile signature of the City Clerk, and the official seal of said City shall be impressed, or imprinted or lithographed on each of said bonds. Such, facsimile signatures on such bonds and interest coupons and said facsimile seal on said bonds shall have the same effect as if the Mayor and City Clerk had in person and manually signed each such bond and interest coupon"and as if the official seal of said City had been manually impressed upon each such bond. Section 6: That the form of the New Bonds, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and en- dorsed on each bond, and the form of interest coupons to be tt attached to said bonds shall be, respectively, substantially as follows: (FORM OF BOND) No. $5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF HARRI S CITY OF LA PORTE, TEXAS GENERAL OBLIGATION AND REFUNDING BOND SERIES 1980 On February 1, , the city of La Porte, in the County of Harris, State of Texas, for value received, hereby promises to pay to bearer the principal amount of e FIVE THOUSAND DOLLARS and to pay interest thereon, from the date hereof, at the rate of ~ per annum, evidenced by interest coupons pay- able February 1, 1981, and semiannually thereafter on -4- e e e - e . August 1 and February 1 of each year while this bond is outstanding. The principal of this bond and the interest coupons attached hereto shall be payable to bearer, in lawful money of the united states of America, without ex- change or collection charges to the bearer, upon presenta- tion and surrender of this bond or proper interest coupon at Bayshore National Bank, La Porte, Texas, or, at the option of the holder, at First City Bank of La Porte, La Porte, Texas, which banks shall be the paying agents for this series of bonds. PROVIDED, HOWEVER, that said City reserves the right to redeem, in whole or in part, all bonds of said series maturing in the years 1991 through 1999 on February 1, 1990, or on any interest payment date thereafter by paying the principal thereof and accrued interest thereon. If less than all of said bonds then outstanding are called for redemption, then the bonds shall be called in inverse numeri- cal order. Notice of such redemption shall be given in writing to Bayshore National Bank, La Porte, Texas, at least thirty (30) days prior to the date fixed for redemption and written notice shall also be given by publishing a copy of said notice in a financial publication of general circulation in the United states one (1) time at least thirty (30) days prior to the date fixed for redemption. Any bond or bonds called for redemption, due provision for the payment of which having been timely made, shall cease to bear interest from and after the date fixed for redemption. THIS BOND IS ONE OF A SERIES OF COUPON BONDS dated August 1, 1980, issued in the principal amount of $3,850,000, and together with the other bonds of said series, is issued for the following purposes, to-wit: (a) $1,850,000 for the construction of improvements to the City's Sanitary Sewer System (being the second and final installment out of $2,000,000 authorized for such purpose) and (b) $2,000,000 for refunding the City of Lomax, Texas, General Obligation Bonds, Series 1980, dated March 1, 1980, in the aggregate principal amount of $2,000,000, all under and in strict conformity with the Constitution and laws of the State of Texas, particularly Chapters 1 and 7 of Title 22, Revised civil Statutes of Texas, 1925, as amended, and by authority of a bond election held within the City of La Porte on February 24, 1979, and pursuant to an ordinance lawfully adopted by the City Commis- sion of said City, which ordinance is of record in the official minutes of said city commission. 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, con- ditions and things necessary to be done precedent to and in the issuance of this bond and this series of bonds, in order to render the same legal, valid and binding obligations of said city, have been done, have happened, and have been per- formed in regular and due time, form and manner, as required by law; that due provision has been made for the payment of the principal of and interest on this bond, and the series of which it is a part, by the levy of a direct annual ad valorem tax upon all taxable property within said City suf- ficient for said purposes; and that the total indebtedness of said city, including the ~ntire series of bonds of which this is one, does not exceed any Constitutional or statutory limitation. IN WITNESS WHEREOF, this bond and the interest coupons attached hereto have been signed by the imprinted or lithographed facsimile signature of the Mayor of said City -5- e e e e . e and countersigned by the imprinted or lithographed facsimile signature of the city Clerk, and the official seal of said City has been duly impressed, or printed, or lithographed on this bond, all as of the 1st day of August, 1980. Mayor, City of La Porte, Texas COUNTERSIGNED: City Clerk, City of La Porte, Texas (FORM OF REGISTRATION CERTIFICATE) COMPTROLLER'S REGISTRATION CERTIFICATE: Register Number ___ I hereby certify that this bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas; and that this bond has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal this Comptroller of Public Accounts of the State of Texas (FORM OF INTEREST COUPON) No. $ On , 19 ,* unless the bond to which this coupon is attached shall have been called for prior redemption as therein provided and due provision has been made for the redemption thereof, * the City of La Porte, in the County of Harris, State of Texas, promises to pay to bearer, the above specified sum in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this interest coupon at Bayshore National Bank, La Porte, Texas, or, at the option of the holder, at First City Bank of La Porte, La Porte, Texas, said amount being interest due that day on the bond, bearing the number hereinafter desig- nated, of that issue of the City of La Porte, Texas, General Obligation and Refunding Bonds, Series 1980, dated August 1, 1980. Bond No. Mayor City Clerk * The phrase between the asterisks will be deleted on all interest coupons attached to bonds maturing on or prior to February 1, 1990. -6- e e e e . . Section 7: That there is hereby created a special fund to be called "CITY OF LA PORTE, TEXAS, GENERAL OBLIGA- TION AND REFUNDING BONDS, SERIES 1980, INTEREST AND SINKING FUND," and all taxes levied, assessed, and collected for or on account of the New Bonds authorized by this ordinance shall, as collected, be deposited into said fund. That while the New Bonds or any part of the principal or the interest thereon remain outstanding and unpaid, there is hereby levied and there shall be annually assessed and collected in due time, form and manner and at the same time other City taxes are assessed, levied and collected, in each year beginning with the current year, a continuing direct annual ad valorem tax upon all taxable property in said City of La Porte, Texas, sufficient to pay the current interest thereon and to create a sinking fund of not less than two per cent (2%) of the principal amount of said bonds then outstanding or of not less than the amount required to pay the principal payable out of said tax whichever is greater, full allowance being made for delinquencies and costs of collection, and said taxes when collected, shall be applied to the principal of and interest on said bonds and for no other purpose. Section 8: That the Mayor is hereby authorized and directed to submit, or cause to be submitted, the record of the New Bonds, and such bonds, to the Attorney General of the state of Texas for examination and approval and there- after cause said bonds to be registered by the Comptroller of Public Accounts of the State of Texas. Upon said regis- tration of the New Bonds, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate prescribed herein to be printed and endorsed on each bond, and the seal of said Comptroller shall be impressed or printed, or lithographed on each of said bonds. -7- . . Section 9: That the City hereby covenants with ~ the purchasers and any subsequent holders of the New Bonds that the City will not make any use of the proceeds of said bonds which will cause said bonds to be or become arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations promul- gated thereunder, and that the City will otherwise comply with the pertinent provisions of said Section 103(c) and regulations in order that said bonds will not be or become arbitrage bonds thereunder. e Section 10: That public advertisement for the sale of the New Bonds having been made and bids to purchase said bonds having been received pursuant thereto, it is hereby found and declared that the bid submitted by First City National Bank of .'.Houston . is the best bid received; and that the sale of the New Bonds to the named best bidder, at a pric~ equal to the principal amount of such bonds plus accrued interest thereon from the date thereof to the date of actual delivery, plus a cash premium of $ , subject to the unqualified approving opinion, as to the legality of said bonds, of the Attorney General of the state of Texas and Baker & Botts, Houston, Texas, market attorneys, is ~ hereby authorized, ratified, approved and confirmed. When the New Bonds have been approved by the said Attorney General and registered by the Comptroller of Public Ac~ounts of the e State of Texas, they shall be delivered to the purchaser upon receipt of the full purchase price. The Mayor, City Clerk and other appropriate officers of the City are autho- rized and directed to perform all acts necessary and/or convenient to carry out the terms of this ordinance. Section 11: That the City hereby exercises its right to redeem all of the Lomax Bonds at the price of par and accrued interest thereon to the date fixed for redemp- tion, and, subject to the remaining provisions of this -8- . e . e section 11, the City Clerk is hereby authorized and directed to give written notice of redemption to Bayshore National Bank, La Porte, Texas, the bank where the Lomax Bonds are payable, at least thirty (30) days prior to September 15, 1980, the date fixed for redemption, and to cause a copy of such notice to be published in the Texas Bond Reporter, which is hereby found and determined to be a recognized financial journal published in Texas, at least thirty (30) days prior to the date fixed for redemption; provided, however, the Mayor, City Clerk, and other officials of the City are hereby authorized to enter into an agreement with the holder or holders of all of the Lomax Bonds providing for the redemption of the Lomax Bonds at such earlier date and on such other terms and conditions as they deem appro- priate. Section 12: That prior to or concurrently with the sale and delivery of the New Bonds, the City shall cause to be deposited to the State Treasure~ of the state of Texas the sum of $2;000,000, plus the amount of interest which will accrue thereon calculated to the date fixed for redemp- tion or the agreed date of redemption, as the case may be, of the Lomax Bonds, and concurrently with such deposit shall e payor cause to be paid to the State Treasurer for his services and to reimburse him for his expenses a sum of e money calculated in accordance with the provisions of Article 717k, V.A.T.C.S., as amended, and an additional amount of money sufficient to pay the charges of Bayshore National Bank, La Porte, Texas, as paying agent for the Lomax Bonds. The Mayor and City Clerk and other appropriate officers of the city are hereby further authorized and directed to do any and all things necessary and/or convenient to effectuate the redemption of the Lomax Bonds and otherwise to carry out the spirit and intent of this Ordinance. -9- . . Section 13: That this ordinance shall take effect tit and be in full force immediately upon and after its adoption. PASSED AND APPROVED on July 30, 1980. ,-. :te, Texas '~ ,~ " .: 0.-;. ;. ~ :. .\." ~':.. ',' ", . . - . '::o..::::'~'~ \ .' ,\,~~,~~-...s:' APPROVED: ~qJ~' Ci ty Attorney' " . e . -10-