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OR 234 Authorizes $300,000 "City of Coppell ORDINANCE NO. 234 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS, AUTHORIZING THE ISSUANCE OF $300,000 "CITY OF COPPELL, TEXAS, COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 1981," DATED MARCH 1, 1981, AS AUTHORIZED BY ARTICLE 2368a.1, V.A.T.C.S.; MAKING PROVISION FOR THE PAYMENT AND SECURITY OF SUCH OBLIGATIONS; PROVIDING FOR THE SALE AND DE- LIVERY THEREOF; AND ENACTING PROVISIONS INCIDENT AND RELATING TO THE PURPOSES AND SUBJECT OF THIS ORDI- NANCE WHEREAS, under the provisions of Article 2368a.1, V.A.T.C.S., the governing body of a city is authorized to issue Certificates of Obligation for the purposes of obtaining funds to pay the contractual obligations to be incurred for the construction of a public work, to-wit: street paving and drainage improvements to portions of Esters Road and Cotton Road and paying all or a portion of the contractual obligations for professional services of engineering, attorneys and financial advisors in connection with said public improvements and Certificates of Obligation; WHEREAS, the City is authorized to provide that such obligations will be payable from and secured by the levy of a direct and continuing annual ad valorem tax against all taxable property within the City and from the revenues of the City's combined Waterworks and Sanitary Sewer System remaining after payment of all operation and maintenance expenses thereof, and all debt service, reserve and other requirements in connection with all of the City's revenue bonds (now and hereafter outstanding) which are payable from all or any part of the net revenues of the City's Waterworks and Sanitary Sewer System, and to sell the same for cash as herein provided; WHEREAS, the City Council has found and determined that it is necessary and in the best interest of the City and its citizens that it issue the Combination Tax and Revenue Certificates of Obligation authorized by this Ordinance; WHEREAS, pursuant to an ordinance heretofore passed by this governing body, NOtice of Intention to Issue City of Coppell, Texas, Combination Tax and Revenue Certificates of Obligation, Series 1981, was published in a newspaper of general circulation in said City on the 12th day of March, 1981 and the 19th day of March, 1981, the date of the first publication of said Notice being at least fourteen (14) days prior to the date set for the passage of this Ordinance; WHEREAS, no petition of any kind has been filed with the City Secretary, any member of the Council or any other official of the City, protesting the issuance of such Certificates; and WHEREAS, this Council is now authorized and empowered to proceed with the issuance of said Certificates of Obligation and to sell the same for cash; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS: -1- Section 1o That for the purpose of obtaining funds to pay the contractual obligation to be incurred for the construction of a public work, to- wit: street paving and drainage improvements to portions of Esters Road and Cotton Road and paying all or a portion of the contractual obligations for professional services of engineering, attorneys and financial advisors in con- nection with said public improvements and Certificates of Obligation, there shall be and there is hereby ordered to be issued, under and by virtue of the Constitution and laws of the State of Texas, particularly Article 2368a.1, V.A.T.C.S., a series of Certificates of Obligation of the City of Coppell, Texas, to be known as "CITY OF COPPELL, TEXAS, COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 1981," in the principal amount of Three Hundred Thousand Dollars ($300,000). Section 2. That said Certificates shall be dated March 1, 1981, shall be numbered consecutively from One (1) through Sixty (60), and shall become due and payable serially on March 1 in each of the years in accordance with the following schedule: CERTIFICATE NUMBERS YEARS (all inclusive) (March 1) AMOUNT 1 - 2 1983 $10,000 3 - 4 1984 10,000 5 - 6 1985 10,000 7 - 9 1986 15,000 10 - 12 1987 15,000 13 - 15 1988 15,000 16 - 18 1989 15,000 19 - 22 1990 20,000 23 - 26 1991 20,000 27 - 30 1992 20,000 31 - 35 1993 25,000 36 - 40 1994 25,000 41 - 46 1995 30,000 47 - 53 1996 35,000 54 - 60 1997 35,000 PROVIDED, HOWEVER, that the City reserves the right at its option to redeem the Certificates of this series maturing on March 1, 1993 through March 1, 1997, both inclusive, in whole, or any part thereof, on March 1, 1992, or on any interest payment date thereafter, for the principal amount thereof and accrued interest to the date of redemption; PROVIDED FURTHER, that at least thirty (30) days prior to any interest payment date upon which any of said Certificates are to be redeemed, notice of redemption signed by the City Secretary (specifying the serial numbers and amount of Certificates to be redeemed) shall have been filed with the First City Bank of Dallas, Dallas, Texas (the paying agent named in each of said Certificates), and if by the date so fixed for redemption the City shall have made available to the paying agent bank funds in amounts sufficient to pay the Certificates called for redemption and accrued interest thereon to the date of redemption, pursuant to such notice, the same shall cease to bear interest from and after the date so fixed for redemption and shall not be deemed to be outstanding for any purpose except for the purpose of receiving such funds. -2- Section 3. That each of said Certificates of Obligation shall bear interest from their date and while outstanding to their respective maturities or earlier redemption at the following rates per annum, to-wit: Bonds maturing in each of the years 1983 through 1985 8.50% Bonds maturing in each of the years 1986 and 1987 9.00% Bonds maturing in each of the years 1988 and 1989 9.25% Bonds maturing in each of the years 1990 through 1992 9.50% Bonds maturing in each of the years 1993 and 1994 9.75% Bonds maturing in each of the years 1995 and 1997 10.00% with said interest to be evidenced by interest coupons payable on March 1, 1982, and semiannually thereafter on each September 1 and March 1. Both principal of and interest on this issue of Certificates shall be payable in lawful money of the United States of America, without exchange or collection charges to the owner or holder, at the First City Bank of Dallas, Dallas, Texas, upon presentation and surrender of Certificates or proper interest coupons. Section 4. 'That the seal of said City may be impressed on each of said Certificates or, in the alternative, a facsimile of such seal may be printed on said Certificates. The Certificates and interest coupons appurtenant thereto may be executed by the imprinted facsimile signatures of the Mayor and City Secretary of the City, and execution in such manner shall have the same effect as if such Certificates and coupons had been signed by the Mayor and City Secretary in person by their manual signatures. Inasmuch as such Certificates are required to be registered by the Comptroller of Public Accounts for the State of Texas, only his signature (or that of a deputy designated in writing to act for the Comptroller) shall be required to be manually subscribed to such Certificates in connection with his registration certificate to appear thereon, as hereinafter provided, all in accordance with the provisions of Article 717j-1, V.A.T.C.S. Section 5. The Certificates shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DALLAS CITY OF COPPELL, TEXAS COMBINATION TAX AND REVENUE CERTIFICATE OF OBLIGATION SERIES 1981 The City of Coppell, a municipal corporation of the State of Texas, certifies and acknowledges itself to be indebted to you for value received, hereby promises to pay to bearer, on the FIRST DAY OF MARCH, , the sum of FIVE THOUSAND DOLLARS ($5,000), in lawful money of the United States of America, with interest thereon from the date hereof to maturity or earlier redemption at the rate of % per annum, payable on March 1, 1982, and semiannually thereafter on each September 1 and March 1; and interest falling due on or prior to maturity hereof -3- is payable only upon presentation and surrender of the interest coupons attached hereto as they severally become due. The principal of this Certificate and the interest coupons attached hereto shall be payable to bearer in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this Certificate or proper interest coupon, at the First City Bank of Dallas, Dallas, Texas, which place shall be the paying agent for this series of Certificates. THIS CERTIFICATE is one of a series of Certificates, numbered consecutively from One (1) through Sixty (60), each in denomination of Five Thousand Dollars ($5,000), aggregating the principal sum of Three Hundred Thousand Dollars ($300,000), issued for the purpose of obtaining funds to pay the contractual obligation to be incurred for the Construction of a public work, to- wit: street paving and drainage improvements to portions of Esters Road and Cotton Road and paying all or a portion of the contractual obligations for professional services of engineering, attorneys and financial advisors in con- nection with said public improvements and Certificates of Obligation under and by virtue of the Constitution and laws of the State of Texas, including Article 2368a.1, V.A.T.C.S.', and in accordance with an ordinance duly passed and adopted by the City Council of the City of Coppell, Texas, and of record in the minutes of the said City Council. AS SPECIFIED in the Ordinance hereinabove mentioned, the City reserves the right at its option, to redeem the Certificates of this series maturing on March 1, 1993 through March 1, 1997, both inclusive, in whole, or in any part thereof, on March 1, 1992, or on any interet payment date thereafter for the principal amount thereof and accrued interest to the date of redemption; PROVIDED, HOWEVER, that at least thirty (30) days prior to any interest payment date upon which any of said Certificates are to be redeemed, notice of redemption signed by the City Secretary (specifying the serial numbers and amounts of Certificates to be redeemed) shall have been filed with the aforesaid paying agent, and if by the date so fixed for redemption the City shall have made available to the paying agent bank funds in the amounts sufficient to pay the Certificates called for redemption and accrued interest thereon to the date of redemption, pursuant to such notice, the same shall cease to bear interest from and after the date so fixed for redemption. IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED that the issuance of this Certificate and the series of which it is a part, is duly authorized by law; that all acts, conditions and things to be done precedent to and in the issuance of this Certificate and the series of which it is a part, have been properly done, have happened and have been performed in regular and due time, form and manner as required by law; that proper provisions have been made for the levy and collection annually of taxes upon all taxable property in said City sufficient within the limits prescribed by law to pay the interest on this Certificate and the series of which it is a part as due and to provide for the payment of the principal as the same matures; and that, in addition to said tax, further provision has been made for the payment of the principal hereof and the interest hereon, and of the series of which this Certificate is a part, by pledging to such purposes the revenues of the City's Waterworks and Sanitary Sewer System remaining after payment of all operations and maintenance expenses thereof, and all debt service, reserve and other requirements in ¸-4- connection with all of the City's revenue bonds (now or hereafter outstanding) which are payable from all or any part of the net revenues of the City's Waterworks and Sanitary Sewer System, all as more fully set forth in said Ordinance, said pledge of such revenues, however, being expressly subject and subordinate to any pledge heretofore made or hereafter to be made securing the payment of any bonds or other obligations payable from such revenues, all as provided in said Ordinance; that when so collected, such taxes and revenues shall be appropriated to such purposes; and that the total indebtedness of the City, including this Certificate and the series of which it is one, does not exceed any constitutional, statutory or other limitation. IN TESTIMONY WHEREOF, the City Council of the City, in accordance with the provisions of Article 717j-1, V.A.T.C.S., has caused the seal of said City to be impressed or a facsimile thereof to be printed hereon, and this ~ertificate and its appurtenant coupons to be executed with the facsimile slI 'ures of the Mayor and City Secretary of the said City, the date of thi }tificate, in conformity with the ordinance hereinabove men 'oned, being e ~ ~F DAY OF MARCH, 1981. . ~ ~ exas COUNTERSIGNED: City Secretary, City of Coppell, Texas Section 6. The form of said interest coupons shall be substantially as follows: NO. $ ON THE , 19 The City of Coppell, in the County of Dallas, State of Texas, unless due provision has been made for the redemption prior to maturity of the Certificate to which this interest coupon appertains, promises to pay to bearer the amount shown on this interest coupon, in lawful money of the United States of America, without exchange or collection charges to bearer, at the First City Bank of Dallas, Dallas, Texas, said amount being interest due that day on the Certificate, bearing the number hereinafter designated, of that issue of City of Coppell, Texas, Combination Tax and Revenue Certificates of Obligation, Series 1981, dated March 1, 1981. Certificate No. City Secretary Mayor Section 7. That the following certificate shall be printed on the back of said Certificates of Obligation: OFFICE OF COMPTROLLER § § REGISTER NO. STATE OF TEXAS § I HEREBY CERTIFY that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that this -5- Certificate of Obligation has been examined by him as required by law, and that it is a valid and binding obligation upon the City of Coppell, Texas, and said Certificate has this day been registered by me. WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas Comptroller of Public Accounts for the State of Texas Section 8. For all purposes of this Ordinance and for clarity with respect to the issuance of the Certificates herein authorized, and the levy of taxes and appropriation of revenues thereof, the following definitions are provided: a. The term "System" as used in this Ordinance shall mean the City's Waterworks and Sanitary Sewer System, including all present and future additions, extensions, replacements and improvements thereto. b. The term "Net Revenues" shall mean the gross revenues of the System 'less the expense of operation and maintenance as said expenses are defined by Statute (Article 1113, V.A.T.C.S.). c. The term "Certificates" shall mean the combination tax and revenue Certificates of Obligation authorized by this Ordinance and any additional certificates of obligation issued on a parity therewith. d. The term "Certificate Fund" shall mean the special fund created under the provisions of Section 9 of this Ordinance. e. The term "Prior Lien Bonds" shall mean any and all bonds or other obligations of the City presently outstanding or that may be hereafter issued, payable from and secured by a first lien on and pledge of the net revenues of the City's Waterworks and Sanitary Sewer system as authorized by the ordinances authorizing the City's presently out- standing Prior Lien Bonds and Section 14(a) of this Ordinance. f. The term "Fiscal Year" whenever the same appears without any qualifying language, shall mean the twelve-month operations period for the system ending on September 30 of each year. g. The term "Surplus Revenues" shall mean the revenues of the City's Waterworks and Sanitary Sewer System remaining after payment of all operational and maintenance expenses thereof, and all debt service, reserve and other requirements in connection with the City's Prior Lien Bonds. Section 9. That for the purposes of paying the interest on and to provide a sinking fund for the payment, redemption and retirement of the Certificates, there is hereby created and established a special fund to be designated "SPECIAL CITY OF COPPELL, TEXAS, COMBINATION TAX AND REVENUE CERTIFICATE OF OBLIGATION FUND," and all moneys deposited therein shall be used for no other purpose. This fund shall be deposited with the First City Bank of Dallas, Dallas, Texas, and said custodian of the Fund is -6- hereby authorized and directed to make withdrawals from said Fund in such amounts required to pay the principal of and interest on the Certificates as the same become due and mature. Section 10o That to provide for the payment of the debt service requirements of the Certificates, being (i) the interest on the Certificates, and (ii) a sinking fund for their redemption at maturity or a sinking fund of 2% per annum (whichever amount shall be the greater), there shall be and there is hereby levied for the current year and each succeeding year thereafter while the Certificates or any interest thereon shall remain outstanding and unpaid, a sufficient tax on each one hundred dollars' valuation of taxable property in said City, adequate to pay such debt service requirements, full allowance being made for delinquencies and costs of collection; said tax shall be assessed and collected each year and applied to the payment of the debt service requirements, and the same shall not be diverted to any other purpose. The taxes so levied and collected shall be paid into the Certificate Fund. This governing body hereby declares its purposes and intent to provide and levy a tax legally and fully sufficient to pay the said debt service requirements, it having been determined that the existing and available taxing authorization of the City for such purpose is adequate to permit a legally sufficient tax in consideration of all other outstanding obligations. The amount of taxes to be provided manually for the payment of principal of and interest on the Certificates shall be determined and accomplished in the following manner: a. The City's annual budget shall reflect (i) the amount of debt service requirements to become due on the Certificates in the next succeeding Fiscal Year of the City, (ii) the amount on deposit in the Certificate Fund, as of the date such budget is prepared (after giving effect to any payments required to be made during the remainder of the then curent Fiscal Year) and (iii) the amount of Surplus Revenues of the System estimated and budgeted to be available for the payment of such debt service requirements of the Certificates during the next succeeding Fiscal Year of the City. b. The amount required to be provided in the succeeding Fiscal Year of the City from ad valorem taxes shall be the amount, if any, the debt of service requirements to be paid on the Certificates in the next succeeding Fiscal Year of the City exceed the sum of (i) the amount shown to be on deposit in the Certificate Fund at the time the annual budget is prepared, and (ii) the Surplus Revenues of the System shown to be budgeted and available for payment of said debt service requirements after taking into consideration the debt service requirements and other fund requirements of the Prior Lien Bonds. co Following final approval of the annual budget of the City, the governing body of the City shall, by ordinance, levy an ad va]orem tax at a rate sufficient to produce taxes in the amount determined in paragraph (b) above, to be utilized for purposes of paying the principal of and interest on the Certificates in the next succeeding Fiscal Year of the City. -7- Section 11o The City hereby covenants and agrees that all the Surplus Revenues, with the exception of those in excess of the amounts required to be deposited to the Certificate Fund as hereafter provided, are hereby irrevocably pledged to the payment of the principal of and interest on the Certificates as the same become due. After satisfying all payments required under the terms and provisions of the ordinances authorizing the Prior Lien Bonds, all Surplus Revenues remaining shall be and are hereby pledged and the same shall be appropriated for the following purposes and in the order of precedence shown, as follows: FIRST: To the "SPECIAL CITY OF COPPELL, TEXAS, COMBI- NATION TAX AND REVENUE CERTIFICATES OF OBLIGA- TION FUND," to the extent as provided in Section 12; and SECOND: To any other proper purposes now or hereafter permitted by law. Section 12. That the City shall cause the pledged Surplus Revenues to be deposited in the Certificate Fund as and when the same is available until such time as such Fund contains an amount equal to pay the principal of and interest on the Certificates' to final maturity. Section 13. All Funds for which this ordinance makes provision (except any portion thereof as may be at any time properly invested) shall be secured in the manner and to the fullest extent required by the laws of Texas for the security of public funds, and such Funds shall be used for the purposes permitted by this Ordinance. Section 14. (a) That the City expressly reserves the right to issue additional Prior Lien Bonds in accordance with the provisions of the ordinances authorizing the City's presently outstanding Prior Lien Bonds. (b) That the City expressly reserves the right to issue other Certifi- cates of Obligation or any other obligations in any lawful amount, of any nature or kind and for any lawful purpose which are payable from taxation and Surplus Revenues, and any such obligations may be on a parity with the Certificates. (c) That notwithstanding any other provisions of this Ordinance, the City expressly reserves the right to issue any obligations in any lawful amount, of any nature or kind and for any lawful purpose which are payable wholly from taxation and/or from any other revenues of the City. Section 15. That, in addition to any other rights and remedies provided by the laws of the State of Texas, the City covenants and agrees that in event of default in the payment of principal of or interest on any of the obligations authorized and permitted hereby when due, or failure to make the payments required into the Certificate Fund or defaults in the observance or performance of any of the covenants, conditions or obligations set forth in this Ordinance, the holder or holders of any of the obligations authorized or permitted hereby shall be entitled to apply for a writ of mandamus to a court of proper jurisdiction for the purpose of compelling and requiring the City and the officials thereof to observe and perform any covenants, obligations or conditions prescribed in this Ordinance. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a -8- waiver of any such default or acquiescence therein, and every such right and power may be exercised from time to time as often as may be deemed expedient. The specific remedies provided herein shall be cumulative of all other existing remedies, and the specification of such remedies shall not be deemed to be exclusive. Section 16. It is the intention of this governing body and accordingly hereby recognized and stipulated that any provisions, conditions and other recitals which may be contained in the ordinances authorizing Prior Lien Bonds which bear upon the management of the affairs of the City's Waterworks and Sanitary Sewer System and methods providing and administering its revenues shall be applicable as appropriate to the Certificates herein authorized but in all respects subject to the priorities of the Prior Lien Bonds. Section 17. That all of said Certificates, being numbered One (1) through Sixty (60), both inclusive, are hereby sold in accordance with law and shall be delivered to First Southwest Company for the principal amount thereof plus accrued interest to the date of delivery. Any such accrued interest shall be deposited into the Certificate Fund. Section 18. 'That the purchaser's obligation to accept delivery of the Certificates herein authorized is subject to their being furnished a final opinion of Messrs. Hutchison Price Boyle & Brooks, Attorneys, Dallas, Texas, approving such Certificates as to their validity, said opinion to be dated and delivered as of the date of delivery and payment of such Certificates. Printing of a true and correct copy of said opinion on the reverse side of each of such Certificates, with appropriate certificate pertaining thereto executed by facsimile signature of the City Secretary is hereby approved and authorized. Section 19. The Mayor of the City shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas, and shall take and have charge and control of the Certificates herein authorized pending their approval by the Attorney General, registration by the Comptroller of Public Accounts, and delivery to the purchaser thereof. Section 20. That said City hereby covenants that the proceeds from the sale of said Certificates will be used as soon as practicable for the purpose for which said Certificates are issued; that such proceeds will not be invested in any securities or obligations except for the temporary period pending such use; and that such proceeds will not be used directly or indirectly so as to cause all or any part of said certificates to be or become "arbitrage certificates" within the meaning of Section 103(e) of the Internal Revenue Code of 1954, as amended, or any regulations or rulings prescribed or made pursuant thereto. Section 21. There is hereby appropriated from the available and Surplus Revenues of the City sufficient and adequate funds to pay the March 1, 1982 interest payment. Section 22. That the form and substance of the Official Statement, dated January 27, 1981, and presented to and considered at this meeting, is hereby in all respects approved and adopted by the City Council, and the Mayor and City Secretary are hereby authorized and directed to execute the same and deliver appropriate numbers of executed copies thereof to the purchasers of the -9- Certificates herein authorized and described herein. Said Official Statement as thus approved, executed and delivered, with such appropriate variations as shall be approved by the City Manager and the purchasers of said Certificates, shall be used by said purchasers in the public offering and sale of said Certificates. The City Secretary is hereby authorized and directed to include and maintain a copy of the Official Statement thus appreved among the permanent records of this meeting. PASSED AND APPROVED this the day I 1. ATTEST: City S~Texas [SEAL] -10- MINUTES AND CERTIFICATION PERTAINING TO AN ORDINANCE AUTHORIZING THE ISSUANCE OF $3,000,000 CITY OF COPPELL, TEXAS, COMBINA- TION TAX AND REVENUE CERTIFICATES OF OBLI- GATION, SERIES 1981 AND RELATED MATTERS THE STATE OF TEXAS § COUNTY OF DALLAS § CITY OF COPPELL § On this the 2_/t day of ff/~t/,A. , 1981, the City Council of the City of Coppell, Texas, convened in Regular meeting at the regular meeting place thereof, the meeting being open to the public and notice of said meeting, giving the date, place and subject thereof, having been posted as prescribed by Article 6252-17, V.A.T.C.S., and the roll was called of the duly constituted officers and members of said City Council, to-wit: Andrew Brown, Mayor David Phillips ) Dorothy Timmons, City Secretary Roy Brock ) Councilmembers Glen White ) Dale Ware ) Orville Mayo ) among other business the following was transacted at said Meeting: An Ordinance by the City Council of the City of Coppell, Texas, Authorizing the Issuance of $300,000 "City of Coppell, Texas, Combination Tax and Reve- nue Certificates of Obligation, Series 1981," dated March 1, 1981, as authorized by Artile 2368a.1, V.A.T.C.S.; making provision for the payment and security of such obligations; providing for the sale and delivery thereof; and enacting provisions incident and relating to the purposes and subject of this ordinance The Ordinance, a full, true and correct copy of which is attached hereto, was read and reviewed by the City Council. second c e at the Ordinance be passed. The Mayor put the motion to a vote of the members of the City Council and the Ordinance was passed by the following vote: AYES: All members shown present above voted "Aye". NOES: None. The Mayor then declared the Ordinance passed, and signed and approved the same in the presence of the City Council. MINUTES APPROVED AND CERTIFIED TO BE TRUE AND CORRECT and to correctly reflect the duly conlstituted members of the City Council of said City, and the attached and following copy of said Ordinance is hereby certified to be a true and correct copy of an official copy thereof n file among the this the day o , 1981. o xss ATTEST: [SEAL]