OR 36 Authorizes issuance of $345,000 Water & Sewer System Revenue Bonds ORDINANCE NO. 36
AN ORDINANCE by the City Council of the City
of Coppell, Texas, authorizing the issuance
of $345,000 'CITY OF COPPELL, TEXAS, WATER
AND SEWER SYSTEM REVENUE BONDS, SERIES
1966,' dated May1, 1966, of which the sum
of $150,000 shall be for the purpose of con-
structing improvements and extensions to the
City's Waterworks System, and $195,000 shall
be for the purpose of constructing or pur-
chasing, improving and extending a Sanitary
Sewer System in and for said City, as author-
ized by the General Laws of The State of Texas,
particularly Article 1111 et seqq., V.A.T.C.S.,
prescribing the form of the bonds and the
form of the interest coupons; pledging the
net revenues of the City's combined Waterworks
and Sanitary Sewer System to the payment of the
principal of and interest on said bonds; enact-
ing provisions incident and related to the sub-
ject and purpose of this ordinance; and declar-
ing an emergency."
k~RF_~S, at an election held on the 27th day of March,
1965, more than a majority of the duly qualified resident
electors of said City, ~ho ovr~ed taxable property within said
City and who had duly rendered the same for taxation, who
participated in the electicn~ voted in favor of the issuance
of $150,000 revenue bonds for the purpose of constructing im-
provements and extensions to the City's Waterworks System and
$195,000 revenue bonds for the purpose of constructing or pur-
chasing, improving and extending a Sanitary Sewer System in
and for said City, and it is now found and determined that all
of said bonds should be issued at this time; and,
~E-LEREAS, it has been determined that the City Council of
the City of Coppall, Texas, acting for and on behalf of said
City, is in all respects duly and legally empowered to issue
the aforesaid bonds; therefore, ,
BE IT ORDAINED BY TF2 CITY COLTI~CiL OF THE CITY OF COPPELL,
TEXAS:
SECTION 1: Authorization - Princioa! Amount - Desi~nation.
That in order to borrow the sum of T~L~EE HUNDED FORTY FIVE
TEOUS~j~D D0vJARS ($345,000), of which the sum of $150,000 shall
be fcr the purpose of conszructing imorovements an~ extsns~ons
to the City's Waterworks System and $!95,00_p_0shali be for the
purpose of constructinc or purchasing. ihprovin~ and extending
a ~anitzry S~.~er System in and fcr said City, the City Counlil
of zhs City of Coppeli, Texas, by virtue of the authority ex-
press!7 conferred by the resident qualified property taxpaying
electors, who o~med tm~able properny in said City, and who had
duly r&ndered the same for taxation, voting at the aforesaid
e!ecticn, and pursuant to the General Laws of the State of Texas,
parzicuiarly Article i!il st seqq., V.A.T.C.S., has determined
-thal there shall be issued and tkere is hereby ordered to be
i£i~ed ~ series of coupon bonds, Zo be designated "CITY OF
OCt?ELL, TEXAS, WATER ~2qD SF~R SYSTDiREVENUE BONDS, SERIES
19~5," dated May !, 1966, a~q%regating ~he sum of T}r-~Z2 HUNDRED
.... '~" payable as to both
, u FIVE THOUSAiqD DOLLAPJ ($345,000),
principal and interesZ solely from and secured by a first
Cit '
lien on and pledge of the revenues of the y s combined
Wa~en~orks and Sanitary Sewer System, after deduction of
reasonable operation and maintenance expenses, as said ex-
penses are defL~ed by s~a=uze, hereinafmer referred to as
"net revenues".
SECTION 2: Date - Numbers - Maturity - ODtion. Said
bonds shall be-dated Fmy 1, 1966; shall be numbered consecu-
tively from One (1) through Three Hundred Forty-Five (345);
shall be in denomination of One Thousand Dollars ($1,000)
each, aggregating the principal sum of Tt!REE tIUNDRED FORTY
FiVE %HOUS~YD DOLLARS ($345,000) and
payable serially onM ay 1 in each of
with the following schedule:
BO~NUMBERS
(All Inclusive)
1
2
3
4
5
6
7 and 8
9 to 11
12 to 15
16 to 20
21 to 26
27 to 33
34 to 40
4! to 48
49 zo' 56
57 to 64
65 to 73
74 Eo 82
83 to 91
92 to !00
i0! to 110
ili to 120
!21 to !31
132 to 142
143 to 153
L54 to 165
166 to 177
178 to 190
191 to 203
204 to 217
218 to 231
232 tO 246
247 to 261
262 to 277
278 to 293
294 to 310
3~1 to 327
328 ~o 345
shall become due and
the years in accordance
i,!~.TURITY AMOUNT
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
i981
1982
1983
!984
1985
Ic86
1987
!98~
1989
1990_
1991
1992
19~!
i994
1995
1996
i9~7
1998
1995
2000
200~
2002
2003
2004
2005
2006
$ !,000
!,000
1,000
t,000
1,000
t,000
'2,000
__3,000
j,000
. 5,000
5,000
7,000
7,000
8,000
8,000
8,000
9,000
9,000
9,000
9,000
~0,000
...... 20 000
1I 000
~1 000
il 000
12 000
~2,000
~3,,000
~3,000
~4,000
~4,000
!5,000
15,000
16,000
16,000
t7,000
&7,000
18,000
( ~
PROVIDED· HOWEVER, thmt the City of Coppell reserves the
right to redeem bonds maturing in 1977 and thereafter,
in '~hole or in part, but in inverse numerical order
if'less than all, on May i, 1976, or on any interest payment
date thereafter at par and accrued interest to the date fixed
for redemption plus a premiu~mof 4% on all bonds called for
redemption at the expiration of the tenth year from the date
of the bonds, with a reduction of 1/4th of 1% each year there-
after until the expiration of the twenty-sixth year, on or
after which date there s~m!l be no premium on any bonds so
called; PROVIDED· FURTHER, mhat at least thirty (30) days
prior to any interest payment date upon which any of said
bonds are to be redeemed, notice of redemption, signed by
the City Secretary (specifying the serial numbers and amount
of bonds to be redeemed), shall have been filed with the
PiERCA~NTILE NATIONAL E~3~TX AT DALLAS, Dallas, Texas
and with The Chase Ma?~f. attan Bank (National Association),
New York, New York (the paying agents
named in each of said bonds); and should any bond or bonds not
be presented for redemption pursuant to such notice, the same
shall cease to bear interest from and after the date so fixed
for redemption.
SECTION 3: Interest. That said bonds sh 1 bea~st
from date to maturity at the rate of FOUR PER EN~~(4%) pe~
annum, such interest to be evidenced by proper coupons attac~ed
to each of said bonds; and said interest shall be payable on/
SECTION 4: Place of ?s~ent. That both the principal
of and the interest on tkis issue of bonds shall be
payable in lawful money of uhe United S~ates of America, with-
out exchange or collection charges to the owner or holder, at
the FSRCANTILE NATIONAL ~_~ AT DALL~S~ Dallas, Texas, ,
or at the option of the holder, at The Chase Manhattan Bank
~Na=icna! Association)~ New York= New York
interest on the bonds shall be payable upon presentation and
surrender of the proper coupons.
EECTION 5: Execution of Bonds and CouDons. The seal of
said City may be impressed on each of said bonds or, in the
alternative, a facsimile of such sea! may be printed on the
z'-.id Bonds. The bonds and interest coupons appurtenant there-
zc may be executed by the imprinted facsimile signatures of
the F~yor and City Secretary of the City and execution in such
manner shall have the same effect as if such bonds and coupons
l~ad been signed by the Y.-"yor and City Secretary in person by
Z>~eir manual signatures. Inas?-'ach as such bonds are required
to be registered by the Comptroller of Public Accounts for the
State of Texas, only his signature (or that of a deputy desig-
nated in writing to act for the Comptroller) shall be required
to be manually subscribed to such bonds in connection with his
registration certificate to appear thereon, as hereinafter pro-
vided; all in accordance with the provisions of Article 717j-1,
V.A.T.C.S.
SZdTION 6: Form of Bonds. That the form of said bonds
ska!l be substantially as follows:
NO. FNITED STATES OF ~-;v~RICA $1,000
STATE OF TEXAS
CO'.3.qTY OF II~LL~S
CITY OF COPPaLL, T-ZY~S, WATER AND SEWER SYSTEM
REVENUE BOI~DS, SERIES 1966
FOR VALUE RECEIVE~D, the City of Coppall, a municipal cor-
poration of the State of Texas, hereby acknowledges itself in-
debted zo and promises to pay to bearer, as hereinafter stated,
on the FIRST DAY OF MAY, , the s~ of
ONE THOUS.~Z. CD DOLLAiIS
($I~00~ in lawful money of the United States of America, with
interest thereon from the date hereof to maturity at the rate
of FOUR PER CENTUM (4Z) per annum~ payable on November 1, 1966,
and semi-annually thereafter on ~fy I and November 1 in each
year, and interest falling due on or prior to maturity hereof
is payable only upon presentation and surrender of the interest
coupons hereto attached as they severally become due.
BOTH PRINCIPAL and INTEP~EST shall be payable at the
ERCAhTiLE NATIONAL !~NX AT ~LLAS. Dallas; Texas , or
at uhe option of the holder, at The Chase ManhatreD Bank
[National Associatien)~ New York, New York ,
without exchange or collection charges to the owner or holder,
and the said City of Coppal!, Texas, is hereby held and firmly
bound to apply the pledged appropriated net revenues of its
co~ined Waterworks and Sanitary Sewer System to the prompt
payment of principal of and interest on this bond a~ maturity,
and to pay said principal and interest as they mature.
THiS BODDD is one of a series of bonds of like tenor and
effect except as to number~ interest rate, right of prior re-
der. ption and maturity, aggregating T}idE }FJNDRED FORTY FIVE
TEOUSA?~D DOLL~RS ($345,000), nu~.bered consecutively from One
(i~ through Three Hmndred Forty-Five (345) in denomination
· ~
of One Thousand Dollars ($I,000) each, of which the s'~ of
$i~9,C$0 shall be for the purpose of constructing improvements
an2 extensions to the City:s Waterworks System and $195,000
shill ~e for the purpose of constructing or purchasing, im-
proving and extending a Sani%ary Sexqer System in and for said
City, in accordance with the Constitution and laws of the
Sza~e of Texas, particularly Article 11!i et seqq., V.A.T.C.S.,
ani by authority of avone of the resident qualified property
taxpaying electors of said City, who o~vued taxable property
therein and had duly rendered the same for taxation, voting
at an election held for that purpose within said City on the
27th day of F~rch, 1965, and pursuant to an ordinance passed
by nhe City Council of the City of Coppall, Texas, and duly
recorded in the Minutes of said Ciny Council.
AS SPECIFIED in the ordinance hereinshore mentioned, the
City reserves the right to redeem Bonds maturing in 1977 and
thereafter, in whole or in part, but in inverse
numerical order if less than all, on Fmy 1, ~976, or on any
interest payment date thereafter at par and accrued interest
to-the date fixed for redemption plus a premium of 4% on all
bonds called for redemption at the expiration of the tenth
year from the date of the bonds, with a reduction of 1/4th
of 1% each year thereafter until the expiration of the twenty-
sixth year on and after which date there shall be no premi,~
on any bonds so called; PROVIDED, HOI..rE'v'ER, that at least
thirty (30)' days prior to any interest payment date upon
which any of said bonds are to be redeemed, notice of redemp-
tion, signed by the City Secretary (specifying the serial
numbers and amount of bonds to be redeemed), shall have been
filed with the MZRC~NTILE NATIONAL E~NK AT DALLAS. Dallas,
Texas. and with The Chase MenhEttan Bank (National
Association), New York, Nex~ York, ;
and should any bond or bonds not be presented for redemption
pursuant to such notice, the same shall cease to bear interest
from and after the date so fixed for redemption.
TF~ DATE of this bond in conformity with the ordinance
above mentioned is May 1, 1966.
.~.qiS BOIleD and the series of ~ich it is a part constitute
special obligations of the City cf Coppe!l: Texas, and are pay-
able solely from and equally secured by a First Lien on and
pledge of the net revenues of the City' combined Waterworks
an~ Sanitary Sewer System.
T}~ CITY expressly reset, as the right to issue further
an~ additional revenue bond obligations in all things on a
parity with the bonds of this series and payable solely from
and equally secured by a First Lien cn and pledge of the net
revenues of the City's cor.~in~d ]CatzL~crks and Sanitary Sewer
Syzzam; PROVIDED, F. OI,~2VER~ that any and all such further bonds
may ba so issued only in accordance with and subject to the
ccc~nants, conditions, lir~i~azic2s and restrictions relating
thzre=D which are set out 27_d contained ip. the ordinance au-
thorizing this series of bonds, and to which said ordinance
reference is hereby made for full and complete particulars.
THE HOLDER hereof shall never ~.ave the right zo demands,/
paL. Tae~tt of this obligation ouc cf ~:r.y f-~ds raised or to be
raised by taxation.
I~.CH HOLDER of this bDnd,.payable to bearer, or of the
in~arasZ coupons hereto attached, is conclusively presumed
tc forego and renounce his equities in favor of subsequent
holders for value without notice -and to agree than, being
payable to bearer, this bond and each of the interest coupons
attached may be negotiated by delivery however possession may
have been acquired, and that any subsequent holders ~ho may
razeira this bond or any of the interest coupons attached,
="- value ~dthout notice, has thereby acouired absolute title
free from all equities ~nd claims of ox~.ership of any prior
holder. The City of Coppell, Texas, its officers and the
paying agents shall not be affected by any n~tice to the
contrary.
AI~'D IT IS HEREBY CERTIFIED Ai'~D P~ECITED that the issu-
ance 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 bond to render the same lawful and valid
have been properly done, have happened and have been per-
formed in regular and due time, form and manner as required
by uhe Constitution and laws of the State of Texas, and the
ordinance hereinabove mentioned; that this series of revenue
bonds does not exceed any constitutional or statutory limita-
tions; and that provision has been made for the payment of
the principal of and interest on this bond and the series
of which it is part by irrevocably pledging the net revenues
of the combined Waterworks and Sanitary Sewer System of the
City of Coppell, Texas.
iN TEST!M01~Y1~KEOF, the City Comnci! of the City of
Coppe!l, Texas, in accordance with the provisions of Article
7!7j-1, V.A.T.C.S., has caused the seal of said City to be
impres~.ed or a ~acsimiie thereof to be printed hereon, and
this bond and its appurtenant coupons to be executed with the
imprinted facsimile signatures of the Mayor and City Secretary
of said City, as of the IsZ day of May, 1966.
COL%~TERS iGNED:
~layor~ City of Coppall, Texas
City Secretary, City of
Coppell, Texas
SECTION 7: Coupon Fe~..-m. The form of said interest coupons
shall be substantially as follows:
N0. CN TiE FIRST DAY OF S
*(unless the bond to which this. coupon pertains has been properly
called for redemption in accordance with its terms,) the City of
.Coppe!!, ~exas, a municipal corporation of the State of Texas,
hereby promises to pay to bearer; out of fm~ds specified in the
bond to which this coupon is attached (withou~ right to demand
paEment out of any funds raised or to be raised by taxation),
and in lawful money of the United States of America, without
*~OTE TO PRINTER: The expression in parentheses to be included
only in coupons maturing Novether 1, 1976,
and subsequent, pertaining to optional bonds maturing May 1,
1977, and subsequent.
exchange or collection charges to the o~vmer or holder, at
the b~RCANTILE NATIONAL BANK AT DALLAS. Dallas, Texas ,
or at the option of the holder at The Chase Manhattan
Bank {National Association). New York, New York ,
the sum of
($ ), said sum being months' interest due that
day on "CITY OF COPPELL, T'?2~,S', ~ZATER AND SE~.TER SYSTEM RE'v'ENUE
BOI~DS, SERIES 1966", dated >~y 1, 1966. Bond No.
City Secretary
Mayor
SECTION 8: Form. of Comntrol!er's Certificate. Substan-
tially the following form of Comp=roller's Certificate shall
be printed on the back of each bond:
OFICE OF COF~TROLLER l
STATE OF TDiAS I
REGISTER NO.
i Fj~REBY CERTIFY tb~t there is on file and of record'in
my office a certificate of ~he Attorney General of the State
of Texas to the effect that this bond has been examined by
h~n as required by lau, and that he finds that it has been
issued in conformity x.3ith zhe Constitution and laws of the
State of Texas, and that it is a valid and binding special
ob!i~ation of the City cf Cc~'-.e~] Texas, payable from the
re~;enuas pledged to ins paTmant by and in ~he ordinance au-
thorizing same, and said bond has this day been registered by
~e.
WI%tESS ~ FJ~ND _'-~2qD c~a- O,- . -,~:.~C~ at Austin, Texas,
this
Ccz-)Zro!ler of Public Accounts
of the State of Texas
SECTION 9: Defini'_izns. For all purposes of this ordinance
in particular for clarL'~y x.7izi: ra,zp~=c% to the issuance of
bonds herein author!z~L ~Ld z~_2 r~izdge and appropria=ion of
re..'anuas therefor, the fo!lc~2inL ./efini~,ions are provided:
(a) The term "Syszam'~ezns the City's combined
Waten~orks and Sanitary Se~.~er System, including all
present and future additioni~ extensions, replace-
ments and improvements thereto;
(b) The term "net revenues" means the gross
revenues of the System less the expense of opera-
tion and maintenance, including all salaries, i~bor,
materials, repairs and extensions necessary to r~der
efficient service, provided, however, that only such
repairs and extensiona, as in the judgment of the
City Council, reasonably and fairly exercised,
are necessary to keep the System in operation
and render adequate service to the City and the
inhabitants thereof, cr such as might be necessary
to meet some physical accident or condition tqhich
would otherwise impair zhe bonds authorized by
this ordinance and the additional bonds permitted
to be issued under Section 2D hereof, shall Be
deducted in dete~ini~g "net revenues";
(c) The term "bonds" means the $345,000 revenue
bonds authorized by ~his ordinance;
(d) The term "additional bonds"means the addi-
tional parity revenue bonds ~Thich the City reserves
the right to issue under Section 20 hereof;
(e) The terfa"fisca! year" means the ~qelve-
month period ending September 50 of each
year.
SECTION 10: Pied~s. All of the net revenues of the Sys-
tem with the exception of those in excess of the amotun~ required
to establish and maintain the funds a~ hereinafter provided, are
hereby irrevocably pledged for the pavement of the bonds, and
of ~he additional bonds if issued under the conditions and in
the manner specified in this ordinance, and the interest there-
on, end it is hereby ordained that the bonds and the additional
Bonds if so issued, and the interest thereon, shall constitute
a first lien upon said net revenues.
SECTION 11: Rates and Char~es. The City ccvenants and
agrees x=Tith the holders of the bonds and of the additional
bonds if and when issued:
(a) That it x..~ill at a!'l tiraes charge and collect
for services rendered by the System, on a fully metered
basis, rates sufficient to pay all operating, maintenance,
depreciation, rep!acer. enz and betterment expenses, and
other costs deductible in deZe~-nining net revenues as
hereby defined, ~ .... ., i..zy t~.e inZerest on and principal
of the bonds and zD eztzbiiai~ and maintain the Funds as
kereinafter provided.
(b) If ~he additional bonds are issued, or if the
Eystem should become legally liehie for any other
indebtedness, ~ -. ..... ~.7it! == '~
..~ ~=~y ~ and maintain rates
and collect charges for zhe seaices of the System
sufficient to disc~rge such indebtedness.
SZCT!ON 12: Fund Deal?nations. All revenues derived
from the operation cf the System shall be kept separate from
other funds of the City. TD that end, the following special
funds are hereby created:
(a) "Water and Sewer System Zevc~ue Fund," here-
inafter called "System Fun~". This Fund shall be kept
in the City's depository ba~, ~ich.b~nk shall be a
member of the Federal Deposit insurance Corporation, as
Trustee.
(b) "Water and Sewer System Revenue Bond and In-
terest Sinking Fund," hereinafter called "interest Sink-
ing Fund." This Fund shall be deposited with the MERC-
ANTILE NATIONAL E~,NX AT DALe_AS, Dallas, Texas, as Trustee
of the pledged revenues.
(c) 'Water an6 Sewer S:,z:em Replacement and Repair
Fund," hereinafter c~lled '~L~placement and Repair Fund."
This Fund shall be deposited ~ith zhe City's depository
bank, ~,yhich bank ak::LL be s ms:.~b~r of the Federal Deposit
insurance Corporz:ion~ as Truedee.
SECTiOE 13: System 2uzd. AL~ revenues of every nature
received through tP~ o'~era'~icn of the Sys:em or as a result
of its ownership of the Syztem~ skzi! be deposited by the City
from day to day into the System Fund> and the current expenses
of the System shall be payable from month to month as a first
charge against said S stem
y Fund, as the s~e shall become due
and payable. The City hereby covenants and agrees that the
current expenses of ~= operation of Zhe System in any year
shall not exceed the reasonable and necessary amounts therefor,
and tha~ current expenses shall inziude all reasonable and
necessary costs of operation, maintenance, repairs and exten-
sions necessary to render efficient service and insurance of
the System, but shall exclude depreciation and pay-~ents into
the Interest Sinking Fun~ and the laplacemeat and Repair Fund;
orovided that only such repairs n~cessary to keep the System
. .._
in operation and render adequate service to the City and the
inhabitants thereof, or such as ~.ight be necessary to meet some
physical accident or ccndizlon x,3hich would otherwise impair the
bonds~ shall be a lien prior to ~Ly existing lien. All revenues
of the System not actual!y-required to pay expenses and costs
incurred or permitted by this Sec'.zizn shall be deposited in the
other Funds created by this ordinance, each of which s~ll have
priority thereto in the order in ~7hich they are created in the
fo!lo~ing Sections.
SZCTiON 14: inte'~ez~z Sinki~ciFund. This Fund is to be
uz~d ~xc!usively for Ehe 'purpose of paying the principal of and
inzerasz on the Water and Ss~.yer System Revenue Bonds. Into said
F.ir.d there shall be deposized.ail accrued interest received from
i~e sale of the Water and Se~.yer S~zzem Revenue Bonds. Thereafter,
upon co~D!etion of the cor~rzrucz~.c~ of ~h~ ~p~,=~=~ts and after
~ "' payment of c~rrenz ~xpenses, on or before the 10th
pr-v!a~ng for
day of each month thereafter~ there shall be deposited into said
Fund one-fifth of the next maturir=g interest and one-tenth of
the next maturing principal payment from the ~ater and Sewer Sys-
tem Revenue Fund until the funds and/or investments in the Inter-
eat Sinking Fund are sufficient to pay debt service requirements
on the outstanding Bonds for the then current year plus a debt
service reserve in ~he s~ of $18,500, and thereafter such s~-=s
as inay be necessary to pay when due the then curren~ ~ear's
debt s~rviee and maintain a debt ~ervice reserve in the amount
c'f $18,500; provided that at such time as the amount on hand in
said Fund is fully sufficient to pay principal and in'zarest re-
quirements of the bonds to their final maturity, such deposits
may be discontinued.
SECTION 15: ReDlacement and Repair Fund. As soon as
the. required reserve is accumulated in the said Interest
Sinking Fund, and so long as any of the Bonds are outstand-
ing and unpaid, tb~ City shall deposit into the Replacement
and Repair Fund the sum of $300 monthly from the net revenues
of the System until the funds and/or investments therein shall
amount to $18,000. Funds in said Water and Sewer System Re-
placement and Repair Fund' are to be used to pay for any extra-
ordinary repairs or replacements to the System'for which funds
are.not otherwise available and to pay maturing principal or
interest on'the Bonds ~-?hen funds in zhe Interest Sinking Fund
are it. adequate for such purposes. Whenever any funds are paid
out of said Replacement and Repair Fund,.payments into the
account shall be restLed and continued until such time as the
account has been restored to the level of $18,000. The deposits
into this Fund shall be subordinate tc those required to be
made into the Interest Sinking Fund.
SECTION 16: Investn-=nt of ?'dnds. The City, at its option,
may invest the reserve portion of Zi'~e interest Sinking Fund and
the Reolacement and RsDai-- !'und in direct obligations of, or
olbiga~ions the principal and interest on which are guaranteed
by~ the.United States Govarr~:ent, and if at any t~e minvested
f,ads are insufficient to zccompiisP~ tb.e purpose for which said
respective Funds are herein estab!isked, the respective custo-
di~ bank shall sell on the open market such mount of the se-
curities as may be required no meet such deficiency, giving no-
tice thereof to the City. Until such t~e as the Interest Sink-
4~6- Fund and the Repair and Reoizcement Fund are fully established
and contain the full amounts provided in the ~.:o preceding Sec-
tions, all money resulting from the maturity of principal md
interest of the securities it. x-i~ich the aforesaid Fm~ds are in-
vested may be reinvested or icc'.rj..ula%ed in the respective Funds
and considered a part thoreLf a'j.d used for and only for the
purposes hereinabove specified xTi'zl~ respecE thereto, provided,
hencevet, when such funds cue fully established such increment
~iy be transferred to the
y Fund.
SZCTIOiq 17. DefiCiencies in Funds. If in any month the
City s~.zli for any reason fail to pay into the Interest Sinking
Fund the full ~.~ount above szipu!ated, an amount equivalent
to such deficiency shall be sea aT, art and paid into said Fund
from the first available and unzilcnazed revenues of the fo!-
Io'~ring month or montb. s~ and such ~ayzanz shall be in addition
to the F'~OLL~t hereinabove provided tD be otherwise paid into
said Fund during such month or-Imcnths.
EZCTZO~ 18: Excess R=Jvenuas. Any revenues in excess of
those required to estab!iah arid maintain the Funds as above
required may be used for Eke purpose of paying the cost of
usual or extraordinary maintenanze~ repairs and replacements,
or for extensions and -:,~,-provements which will either enhance
zha revenue producing capacity of the System or provide a
higher degree of service= or for purchasing, on the open
market, the outstanding bonds for cancellation, or for re-
deeming the outstanding bonds in inverse numerical and
tur{ty 9rder, at not to exceed the call price or for any other
lawful purpose~
., SECTION 19: Securit~ ef Tunds. All Funds created by
this ordinance shall be secured in ~he manner and to the
fuilest extent permitted ~y !-~.Ts cf Texas for the security
of pu~Dlic funds, and such Funds shall be used only for the
purposes permitted by this ordinance.
SECTION 20: Issuance of Additional Parity Bonds. In
addition tO the.right to issue bonds of inferior lien as
authorized by the laws of the State of Texas, the City re-
serves the right hereafter zo issue additional bonds. The
addi:~:Dna! bonds, when issued, shall be secured by and pay-
able from a first lien on and pledge of the net revenues of
the System in the same manner a.~~ zo the same extent as are
the bonds authorized by this ordinence~ and the bonds and
the additional bonds shall be in all respects of equal dignity.
The additional bonds may be issued in one or more installments,
provided, however, that none shall be issued unless and until
the fo!io~.:ing conditions have been met:
(a) The Ci.ty is no't than in default as to any
covenant, condition or obligation prescribed by
this ordinance;
(b) The iax.Ts of the State of Texas in force
at such time provide .Deraission for the issuance of
such bonds;
(c) Each of the Funds created by this ordinance
contains the mount of money then required to be on
deposit therein;
L%The City has secured a certificate from an
lEt%in registered by the State Board of Registration
for Professional Engineers of the State of Texas,
shox~ing that the projected net income and revenues oft he
System, as estimated by hi~z~-oughout the maturities
of all bonds payable from the revenues of the System,
~.~il! be at least one and forty hradredths [1.4Q) times
the ayerage annual requiremalts for the payment of princi-
pal and interest on tee then outstanding bonds and on
the additional bonds.
(e~ The City has secured from an independent
~ertified Public Accounta~ or a Licensed Public Ac-
co,~ntant a certificate shcuing that the net e~rnings
of the System for the fiscal year preceding the adop-
tion of the ordinance authorizing the additional bonds
is equal to at least one and forty hundredthz (!.40~
times the a~annua! prinicipa! and interest re~
quiremania of all outstanding bonds; and,
(f) The additional bonds are made to maeure on
FmF ~ in each of the years in tchich they are scheduled
fomature.
The term "net earnings" as used in this Section 20 shall
meaT., the gross revenues after deducting the'~eXpenses of oper-
ation and maintenance, but not deducting expenditures which
under standard account practice should be charged to capital
expenditures.
PROVIDED, HOWEVER, anZ or all of the conditions hereinab0ve
set for the issuance of additional bonds may be waived by an
lnstr,~ent or Instruments ~ ~ it~,,g executed by the holders of
o= bonds outstanding
£ZCTION 21: Maintenatce and 0Deration - Insurance. The
City shall maintain the System in good condition and operate
the same in an efficient manner and at reasonable cost. So
long as any of the bonds are outstanding, the City agrees to
maintain insurance for the benefit of the holder or holders
of the bonds on the System, of a kind and in an amount which
usually would be carried by private companies engaged in
similar types of business. Nothing in this ordinance shall
be construed as requiring the City to expend any funds ~nich
are derived from sources other then the operation of the Sys-
tem, but nothing herein shall be construed as preventing the
City from doing so.
SECTION 22: Records - Accounts - Accountin~ Reports.
~e City hereby covenants = agrees that so long as any of
the bonds herein authorized or any interest thereon remain
oczsZanding and unpaid: ir ~.-~ii! ~eD proper records, books and
accounts, relating to the operation of the System and other
~ .... ~es the revenues of ?bach are pledged to secure ~he
beards; separate fr~ all other records and agcounts~ in accord-
azae wi~h generally accepted accz, unzing practices followed on
privazely-O~.med faciliti.~z ~;'f !i!ca type and size= in which corn-
plate and correct enzri~ ~=.ali ~,~ nzde of all pertaining
transactions, as provided ky ArtinCa 1113, V.A.T.C.S., and that
such records, books and ac=cc. unts ~l-.ili be open =o inspection
by the bondholders ar.d zL-~=r agents and representatives. So
long as any of the bonds r~ra~.ir. cuzst~nding, the City will
furnish; upon request, Zc any b~ndhzlder (or Trustee when ap-
'~ days after the close
piiazble) (1) on or Before thirty ,,~.,
of each six months' pario~ of ..... fizcal year a copy of a re-
~.rt cr statement cn z~r. ar~'l-Lrr=z .i. 2' tht piedgad faci!izies for
zi-~a said period. in fzr~z az~ zg~;zent in ~he minimum herein-
afzer specified, and (2) c~ of bafc~8 ninety (90) days after
the clsse of each fiscal y~ir ~ colby of a report by a certified
pu~.!ic accountant, a public zcce~nzant~ or a State ~udizing
official (authorized respectively by State laws to perfo~ such
ir.~e~2ndent audits), on the oper_zizns of the pledged facilities
f-~r ~l-.a next preceding fiscal year inziuding therein zi~e fcilow-
{-.c. info~ation:
~a)
Cogent regarding the mannerin which the City has
complied with cc'.~nanzs in this ordinance and
recommendations for any changes or improvements
in the operaLion of the pledged facilities;
Statement of Income and ~x'~nse;
(c) Balance Sheet;
(d)
Schedule of insurance policies and fidelity
bonds showing with respect to each policy and
bond the nature and amount of risk covered, =b~
expiration date, and the name of the insurer;
(e)
Schedule of the number of customers (connected
and unconnected to the System) by classifications
set forth in the Xate Ordinance, and showyinS the
rate schedule currently in effect; and,
(f)
Current asseased property vs.!uation, report on
tax rates, levies s.d cc!!ections of the incor-
porated City.
Expenses incurred in r. iking zka audits above referred to
are =o be regarded as maintoner. co and operating expenses and
paid as such. Copies cf the aforesaid annual audit sb~ll be
~,ediate!y furnished to Zke Executive Director of the Munici-
pal Advisory Council of the State of Texas at his office in
Austin~ Texas, and to any holder of any ~venue bond or bonds
authorized by this ordinance who s'na!i request the same. Any
bond holder shall have the right to discuss with the acco'~.t-
ant making the annual audit the contents thereof and to ask
for such additional information as he may reasonably require.
SECTION 23: Remedies in E~'ent of Default. In addition
to all the rights and rszsdias provided by the la,~s of the
State of Texas, the Ci;y covenants and agrees particularly
that, in the event the City (a} defaults in payments to be
made to the Interest SirKing Fund and the Replacement and Re-
pair Fund as required hy this ordinance or (b) defaults in the
observance or performance cf any'other of the covenants, condi-
tions or obligations sea forth in this ordinance, the following
remedies sb~ll be available:
(1)
The holder or holders of any of the bonds sh_il
be entitled to a '~rit cf mandamus issued by a
court of proper jurisdiction compelling and re-
quiring the City Ccunci! and other officers of the
City to observe and perform any covenant, condition
or obligation prescribed in the bond ordinance.
(2)
IIo delay or omission tc exercise any right or
power accruing upon any default shall impair any
such right or p~cer, or shall be construed to be
a ~aiver of any such default or an acquiescence
therein, and every such right and power may be ex-
ercised from time to time and as often as may be
deemed expedient.
.The specific remedies harein provided shall be cumulative
cf all .~.ther existing remedies and the specification of such
remedies'shall not be deemed to be exclusive.
"SECTION 24:
tents as follows:
SDeCiai Covenants.
The City further cove-
(a)
That it has the im.zful power to pledge the
revenues supporting this issue of bonds, and
has lawfully.exercised such power under the
Constitution and laws of the State of Texas,
including such ~c~jer existing under Articles
11!1 to 1118, b~zi~ inclusive, V.A.T.C.S., that
the bonds issued kereur_der~ and the additional
bonds ~...~en issusd~ shall be ratably secured under
said pledge cf i~:ccme in such manner that one
bond shall have r.D preference over any other bond
of said issue.
(b)
The City covenants and represents that other
than for the paDs. lent of the bonds herein authorized,
the rents, revenues ard the income of the System
have not in any u__L-.Ler been pledged to the payment
of any debt cr ebllgazion of the City or of the
System.
That, so long as any cf said bonds remain out-
standLng, the Cizy ~ill not sell or encumber the
System or any s~b. szantia! part thereof, and that,
with the exception of the additional bonds ex-
pressly pe~itzed by this ordinance to be issued,
it will not ericusher the revenues thereof unless
such enc~.~brance is made junior and subordinate
to all of the provisions of this ordinance.
That no free service cf zhe System shall be allowed,
and should ~he City or a~y of its agents or instru-
menZa!izies make ~secf the services and facilities
of the System, pzL~ent. of the reasonable value
thereof shall be made by the City out of funds
from sources other tb~n the revenues and income
of the System.
SECTION 25: Bonds are S~ecia! Obligations. The bonds
,~r%e special obligations of the Cizy payable from the pledged
J venues and the holder thereof shall never have the right
to demand payment thereof cut of f~ds raised or to be raised
by taxzzion.
SZZTiON 26: Mayor to Hove Char~e of Records and Bonds.
The Xzycr of the City of Coppail shall be and he is hereby
auzhorized to take and have charge of all necessary orders
~-= records pending investigation by zhe Attorney General of
the State of Texas, and sbsli take and h_ve charge and control
of zhe bonds herein auzhcrized pcn~ini their approval by ~he
Attorney General and their regisataVism by the Comptroller of
Public Accounts.
SECTION 27: Sale and Delivery of Bonds. Delivery of the
bonds herein authorized shall be made to the. purchaser upon
payment therefor in accordance ~ith the terms of sale.
SECTION 28: Emer~enc..,,E. The fact that it is to the best
interest of the City to -rcvide funds for the construction
. Cit '
of imorove~ents and extensions to the y s Waterworks Sys-
tem, a~nd for the construction or purchase, improvement and
extension of a Sanitary Se~er System in and for said City st
the earliest possible date constizuEes and creates an emergency
and~an urgent public neca!sity raq'j_-iLE that this ordinance be
pasted and take effect as an emar~ency ~easure and this ordi-
nance ~s accordingly passed zz an emergency measur~ and shall
take effect and be in force i.--nediateiy from and after its
passage.
PASSED A~D APPROVED~ this the 3rd day of October ,
lo~6
ATTEST:
S/'~.7, T. CozbV
l,{aycr> City of Coppall,
Texas
S/E.
City
C. Gentry
Secretary, City of Cc. ppei!
Texas
(City Seal)