OR 324-A-1 Amends section 9(d) Ord. 324, passed by the City Council ORDINANCE 324A1
AN ORDINANCE AMENDING ORDINANCE NO. 324 RELATING
TO THE ISSUANCE OF CITY OF COPPELL, TEXAS
WATERWORKS AND SEWER SYSTEM REFUNDING AND IMPROVEMENT
REVENUE BONDS, SERIES 1985 IN THE AGGREGATE PRINCIPAL
AMOUNT OF $10,000,000
WHEREAS, the City Council has heretofore passed Ordinance No. 324
relating to the issuance of $10,000,000 City of Coppell, Texas Waterworks and
Sewer System Refunding and Improvement Bonds, Series 1985 (the "Bonds"); and
WHEREAS, the Bonds are being insured by AMBAC; and
WHEREAS, AMBAC and Standard & Poor's Corporation have requested
clarification of the definitions of "Net Revenues" and "Net Earnings" as set forth in
said Ordinance No. 324; and
WHEREAS, the clarification requested by said parties is consistent with the
manner in which the City would determine "Net Revenues" and "Net Earnings;"
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF COPPELL, TEXAS;
Section 1. That Section 9(d) of Ordinance No. 324, passed by the City
Council on February 12, 1985, is hereby amended in its entirety to read as follows:
"(d) The term 'Net Revenues' means all income, revenues,
and receipts of every nature derived from and received by virtue of the
access, use and operation of the System (including interest income and
earnings received from the investment of moneys in the special Funds
created by this Ordinance or ordinances authorizing the issuance of
Additional Bonds) after deducting and paying, and making provision for
the payment of current expenses of maintenance and operation thereof,
including all salaries, labor, materials, repairs and extensio~ks necessary
to render efficient service; provided, however, that only such expenses
for repairs m~d extensions as in the judgment of the City Council,
reasonably and fairly exercised, are necessary to keep the System in
operation and to render adequate service to the City and the
inhabitants thereof, or such as might be necessm~j to meet some
physical accident or condition which would otherwise impair any
obligations payable from the Net Revenues of the System, shall be
deducted in determining Net Revenues; and provided further thm~ the
fees paid to the City for access to the System shall not be included in
Net Revenues unless such fees have actually been received by the City
and are on deposit with the City at the start of the City's fiscal year.
Contractual payments for the purchase of water or the treatment of
sewage shall be a maintenance and operating expe~tse of the System to
the extent provided in the contract incurred therefor and as may be
authorized by law. Depreciation shall never be considered us an
expense of operation and maintenance."
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