HomeMy WebLinkAboutOrd. 1979-1141 - relates to bond election called with -1140
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ORDINANCE NO. 1141
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ORDINANCE DECLARING THE INTENTION OF THE
CITY COMMISSION TO TAKE ADVANTAGE OF ARTICLE
1106, V.T.C.S., IN CONNECTION WITH PROPOSED
UTILITY SYSTEM TAX BONDS; AND DECLARING
THAT SAID ORDINANCE SHALL BE EFFECTIVE
IMMEDIATELY UPON ADOPTION
WHEREAS, the City Commission of the City of La Porte,
Texas, has duly adopted Ordinance No. 1140, dated January l7,
1979, calling a bond election to be peld in and for said City
on February ~, 1979, for the purpose 'of voting on two
propositions for the issuance of tax bonds (hereinafter
90llectively called the "Utility Tax Bonds") of said City, as
follows:
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(a) Proposition No. 1 providing for tax bonds in
the amount of $2,000,000 for the purpose of
extending and improving the City's Sanitary
Sewer System; and
(b) Proposition No. 2 providing for tax bonds in
the amount of $1,250,000 for the purpose of
extending and improving the City's
Waterworks System; and
WHEREAS, Article 1l06, of Vernon's Civil Statutes
of Texas, as amended, authorizes the City Commission to appro-
priate and apply the net revenues of its combined Waterworks
and Sanitary Sewer Systems (hereinafter collectively called
the "utility System") to the paYment of the sinking fund and
interest due by the City on its bonded -indebtedness incurred
'. on account of' said System; and
WHEREAS, the City Commission desires to declare its
intention to take advantage of said Article 1106 in connection
with the payment of the principal of and interest on the Utility
Tax Bonds, if any of them are authorized to be issued by the
voters of the City; Therefore,
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LA PORTE:
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Section 1: That the. terms defined in the preamble
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of this ordinance shall be, and are hereby made, a part of
this ordinance for all purposes.
Section 2: That each year while any of the Utility
Tax Bonds are outstanding and before passing any 'ordinance
levying taxes for that year the City Commission will take advan-
tage of the provision~ of Article ll06, Vernon's Texas Civil
Statutes, as amended, or any like legislation which may be-
come effective ~n the future, by setting aside. out of the net
revenues of the Utility System and applying such sum as the
City Commission deems to be in the best interest of the City to
the paYment of the principal of and interest on the Utility
.e Tax Bonds, or any of them, that falls due during the following
year.
Section 3: That. nothing contained in this ordinance
shall be deemed to restrict the abil'ity of any City Commission to
exercise its independent judgment with respect to the best in-
terest of the City in setting aside and applying net revenues'
of the utility System for the purpose specified in Section 2
hereof; provided, however, as long as any Utility. Tax Bonds
are. out~tanding, no net revenues of the Utility System shall
be used in any year for any other purpose unless 'a sum is appro-
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priated pursuant to Section 2 which is sufficient to. pay in full
the princip~l of and interest on the Utility Tax Bonds for the
following year without levying any tax for such purpose.
Section 4: That nothing contained in this ordinance
sha1.1 be deemed to a:ffect in any' manner the covenants the City
has heretofore made in its outstanding' revenue bonds which are
secured by a pledge of the net revenues of its Utility System
or any part thereof, or to limit in any respect the City's
freedom in the future to issue and sell additional revenue
bonds on a parity with such outstanding bonds, or junior lien
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bonds or other evidences of indebtedness secured by a pledge
of or lien on the revenues of the Utility System or any part
thereof.
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Section 5: That the 'commitment of the City Commission
contained herein is expressly made with the intention that it
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will be binding upon the present and any future City Commission
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if the utility Ta~ Bonds, or any of them, are approved by a
majority of voters in the City at the bond election to be held
on February ~, 1979, but not otherwise.
Section 6: That this ordinance shall take effect
and be in full force upon and after its adoption.
PASSED AND_APPROVED this 17th day of January, 1979.
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"~ ".ATTEST...,
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Mayor,
City of La Porte, Texas
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APPROVED:
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Ci~y Attorney
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