Ordinance 1974-05
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ORDINANCE AUTHORIZING ISSUANCE OF $30,000
CITY OF WYLIE, TEXAS, COMBINATION TAX AND
REVENUE CERTIFICATES OF OBLIGATION, SERIES
1974, DATED AUGUST 15, 1974
THE STATE OF TEXAS
COUNTY OF COLLIN
CITY OF WYLIE
I
i
l
ON THIS the 13th day of August, 1974, the City Council
of the City of Wylie, Texas, covened in re~ar session at the
regular meeting place thereof in the City Hall, the meeting being
open to the public and notice of said meeting, giving the date,
time, place and subject thereof, having been given as prescribed
by Article 6252-17, Section 3A, V.A.T.C.S., there being present
and in attendance the following members, to-wit:
DON R. THOMAS
R. C. DODD
DWAYNE BOYD
EDWARD BUTLER
KENNETH NALL
WILLIAM MARTIN
MAYOR
)
)
)
)
)
ALDERMEN
and with the following absent: NQN(
when among other proceedings had were the following:
Mayor Thomas introduced a proposed ordinance which was
read in full.
Alderman Dwayne Boyd made a motion that any rule re-
quiring ordinances to be read more than one time or at more than
one meeting be suspended. The motion was seconded by Alderman
Kenneth Nall and carried by the following vote:
YEAS: Aldermen Dodd, Boyd, Butler, NaIl and Martin.
NAYS: NONE
Alderman Edward Butler made a motion that the ordi-
nance be passed finally. .The motion was seconded by Alderman
Kenneth Nall and carried by the following vote:
YEAS: Aldermen Dodd, Boyd, Butler, Nall and Martin
NAYS: NONE.
The Mayor announced that the ordinance had been finally
passed.
The ORDINANCE is as follows:
AN ORDINANCE by the City Council of the City of Wylie,
Texas, authorizing the issuance of $30,000
"CITY OF WYLIE, TEXAS, COMBINATION TAX AND
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1974,"
dated August 15, 1974, for the purposes of paying
a contractual obligation of the City to be in-
curred for the purchase of materials and supplies,
to-wit: sewer pipe and cont xts for prnfessional
services of attorneys, financial adviser and engi-
neer; providing for the payment of said certifi-
cates of obligation by (i) levy of a tax, and
(ii) the appropriation and pledge of net revenues
of the City's sanitary sewer system (subject to the
pledge made for bonds payable from such revenues);
providing the terms and conditions of such certi-
ficates; and enacting provisions incident and re-
lating to the subject and purpose of this ordi-
nance, and declaring an emergency.
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 payable from revenues and ad valorem taxes
for the purpose of paying any contractual obligation to be incurred
for the purchase of materials, supplies, equipment or machinery
and for the payment of contractual obligations for professional
services and sell the same for cash; and
WHEREAS, pursuant to a reso1tuion heretofore passed
by the City Council of Wylie, Texas, notice of intention to issue
certificates of obligation of said City, payable from ad valorem
taxes and net revenues of the City's Sewer System, in an amount
not to exceed $50,000 for the purposes of paying all or a portion
of a contractual obligation to be incurred for the purchase of
materials and supplies, to-wit: sewer pipe, and contracts for
personal or professional services to be rendered by attorneys, a
financial adviser and engineers was duly published in a newspaper of
general circulation in said City on the 18th day of July ,
1974, and the --25tiL day of July , 1974, the day of the
first publication of said notice being at least fourteen (14)
days prior to the date set for the passage of this ordinance; and
WHEREAS, no petition of any kind or character has been
filed with the City Secretary, any member of the Councilor any
other official of the City, protesting the issuance of such
certificates; and
WHEREAS, it has been determined that the amount of certi-
ficates of obligation to be issued should be $30,000, and this Gbunci1
is now authorized and empowered to proceed with the issuance of
said certificates of obligation and to sell the same for cash;
therefore,
TEXAS:
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE,
SECTION 1: That for the purpose of paying a contractual
obligation of the City to be incurred far the purchase of materials
and supplies, to-wit: sewer pipe, and contracts for professional ser-
vices of attorneys, financial adviser and engineer, there shall be
and there is hreby ordered to be issued, under and by virtue of the
Constitution and laws of the State of Texas, particularly Article
2368a.l, V.A.T.C.S., a "series of certificates of obligation of
the City of \-.lylie, Texas, to be known as "CITY OF HYLIE, TEXAS,
COMBINATION TAX AND REVENUE, CERTIFICATES OF OBLIGATION, SERIES 1974,"
in the total principal amount of THIRTY THOUSAND DOLLARS ($30,000).
SECTION 2: That said certificates shall be dated
August 15, 1974, shall be numbered consecutively from One (1) through
Six (6), shall each be in thE~ denomination of Five Thousand Dollars
($5,000), and shall become due and payable serially, without right
of prior redemption on August 15 in each of the years in accord-
ance with the following schedule:
CERTIFICATE NUMBER
(All inclusive) YEAR AMOUNT
1 1976 $ 5,000
2 1977 5,000
3 1978 5,000
4 1979 5,000
5 1980 5,000
6 1981 5,000
SECTION 3: That all the certificates shall bear interest
from date until maturity at the rate of 6-1/2% per annum; such
interest to be evidenced by proper coupons attached to each of
said certificates and said interest shall be payable on February
15, 1975, and semiannually thereafter on August 15 and February
l5 in each year.
Both principal of and interest on this issue of certi-
ficates 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 STATE BANK, Wylie, Texas, upon presentation
and surrender of certificates or proper 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 im-
printed 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-l, V.A.T.C.S.
SECTION 5: The,certificates shall be in substantia~ly
the following form:
NO. $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF COLLIN
CITY OF WYLIE, TEXAS, COMBINATION TAX AND
REVENUE CERTIFICATE OF OBLIGATION
SERIES 1974
THIS IS TO CERTIFY that, FOR VALUE RECEIVED, the City of
Wylie, a municipal corpuration of the State of Texas, is justly
indebted to and hereby obligates itself to pay to bearer, without
right of priur redemption, on the FIFTEENTH DAY OF AUGUST,
19____, 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 at the rate of
SIX AND ONE-HALF PERCENTUM (6-1/2%) per annum, payable on
February 15, 1975, and semiannually thereafter on August 15 and
February 15 in each year; and interest falling due on or prior to
maturity hereof is payable only upon presentation and surrender
of the interest coupons attached thereto as they severally become
due.
BOTH PRINCIPAL OF AND INTEREST on this certificate is
hereby made payable at the FIRST STATE BANK, Wylie, Texas, without
exchange or collection charges to the owner or holder; and
for the prompt paYment of this certificate and the interest thereon
as the same becomes due, the City of Wylie, Texas, has levied a
tax upon all taxable property within said City and pledged the net
revenues of the City's sanitary sewer system; PROVIDED, HOWEVER,
such pledge of net revenues is subject and subordinate to the pledge
made for the security and paYment of first lien bonds (as defined
in the ordinance authorizing the series of certificates of which
this certificates is a part.)
THIS CERTIFICATE is one of a series of SIX (6) certi-
ficates; numbered consecutively from One (1) through Six (6);
each in denomination of Five Thousand Dollars ($5,000), issued for
the purpose of paying a contractual obligation of the City to be
incurred for the purchase of materials and supplies, to-wit:
sewer pipe, and contracts for professional services of attorneys,
financial adviser and engineer, Dnder and by virtue of the Consti-
tution and laws of the State of Texas, including Article 2368a.l,
V.A.T.C.S., and in accordance with an ordinance duly passed and
adopted by the City Council of the City of Wylie, and of record in
the minutes of said City Council.
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 paYment of principal of and interest on this certificate and
the series of which it is a part, by the levy of a direct and con-
tinuing annual ad valorem tax against all taxable property within
said City and by a pledge of the net revenues of the City's sani-
tary sewer system; such pledge of net revenues, however, being
subject and s~bordinate to the pledge securing the payment of first
lien bonds as hereinabove recited; and that the total indebtedness
of the City of Wylie, Texas, including this certificate and the
series of which it is a part, does not exceed any constitutional or
statutory limitation.
IN TESTIMONY WHEREOF, the City Council of the City of
Wylie, Texas, in accordance with the ?rovisions of Article 7l7j-l,
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 certificate and
its appurtenant coupons to be executed with the imprinted facsimile
signatures of the Mayor and City Secretary of said City, the date of
this certificate, in conformity with the ordinance hereinabove
mentioned, being the FIFTEENTH DAY OF AUGUST, 1974.
Mayor, City of Wylie, Texas
COUNTERSIGNED:
City Secretary, City of Wylie,
Texas
(CITY SEAL)
SECTION 6: The form of said interest coupons shall be
substantially as follows:
NO.
ON THE FIFTEENTH DAY OF
, 19_
THE CITY OF WYLIE, a municipal corporation of the State of Texas,
hereby promises to pay to the bearer in lawful money of the United
States of America, without exchange or collection charges to the
owner or holder, at the FIRST STATE BANK, Wylie, Texas, the sum
of
$
DOLLARS
($ ), said sum being months' interest due that
day of "CITY OF WYLIE, TEXAS, COMBINATION TAX AND REVENUE CERTI-
FICATE OF OBLIGATION, SERIES 1974," dated August 15, 1974.
City Secretary
Mayor
SECTION 7: That the following certificate shall be
printed on the back of said certificates of obligation:
OFFICE OF COMPTROLLER
STATE OF TEXAS
r
r
r
REGISTER NO.
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 Certificate of Obligation has been
examined by him as required by law, and that he finds that it has
been issued in conformity with the Constitution and laws of the State
of Texas, and that it is a valid and binding obligation upon the City
of Wylie, Texas, and said Certificate has this day been registered
by me.
Texas,
WITNESS MY HAND AND THE SEAL OF MY OFFICE at Austin,
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 Net Revenue
therefor, the following definitions are provided:
(a) The term "System" shall mean the City's Sanitary
Sewer System, including all properties, real, personal, mixed
or otherwise, now owned or hereafter acquired by the City of
Wylie, Texas, through purchase, construction or otherwise, and
used in connection with said System and in anywise appertaining
thereto, whether situated within or without the limits of said City.
(b) The term "net revenues" shall mean the gross reve-
nues of the System less the expense of operation and maintenance,
including salaries, labor, materials, interest, repairs and
extensions necessary to render efficient service; provided, how-
ever, that only such repairs and extensions 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, or such as might be necessary to meet
some physical accident or condition which would otherwise impair
any obligation payable from and secured by a lien on the net
revenues of the System shall be deducted in determinir~g "net
revenues.
(c) The term "certificates" shall mean the combination
tax and revenue certificates of obligation authorized by this
ordinance and additional combination tax and revenue certificates
of obligation, if any, 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 "first lien bonds" shall mean the outstanding
and unpaid bonds payable from and secured by a first lien on and
pledge of the net revenues of the City's waterworks and sanitary
sewer systems (as distinguished from the certificates authorized
by this ordinance which are payable from and secured by a pledge of
the net revenues of the City's sanitary sewer system), being:
(l) The outstanding and unpaid previously issued
bonds of the City identified as follows:
(a) City of Wylie, Texas, Waterworks and
Sewer System Revenue Bonds, dated June 1, 1956,
originally issued in the amount of $100,000;
(b) City of Wylie, Texas, Waterworks and
Sewer System Revenue Bonds, dated February 1, 1959,
originally issued in the amount of $30,000; and
(c) City of Wylie, Texas, Waterworks and Sewer
System Revenue Bonds, Series 1971, dated March 1,
1971, originally issued in the amount of $300,000.
(2) bonds hereafter issued on a parity with said
previously issued bonds as "additional bonds" under the
terms and provisions of the ordinance authorizing the
issuance of such bonds,
(3) any refunding bonds hereafter issued to refund
all or part of the aforesaid previously issued bonds or
additional bonds, if payable from and secured by a
first lien on and pledge of the net revenues of the City's
waterworks and sanitary sewer systems.
(f) The term "fiscal year" whenever the same appears
without any qualifying language, shall mean the twelve-month
operational period for the System ending on December 31 of
each year.
j
SECTION 9: That for the purpose 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 estab-
lished a special fund to be designated "SPECIAL CITY OF WYLIE, TEXAS,
COMBINATION TAX AND REVENVE CERTIFICATES OF OBLIGATION FUND," and
all monies deposited therein shall be used for no other purpose.
This fund shall be deposited with FIRST STATE BANK, Wylie, Texas,
and said custodian of the Fund is 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 be-
come due and mature.
SECTION 10: That to provide for the payment of the debt
service requirements on said certificates, being (i) the interest on
said certificates and (ii) a sinking fund for their redemption at
maturity or a sinking fund of 2% (whichever amount shall be the "
greater). there shall be and there is hereby levied for the current
year and each succeeding year thereafter while said certificate or
any interest thereon shall remain outstanding and unpaid, a suffi-
cient 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. The City Council hereby
declares its purpose 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 authority 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 annually 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 current fiscal year) and (iii)
the amount of net revenues of the System estimated and budgeted to
be available for the payment of such debt service requirements on
the certificates during the next succeeding fiscal year of the City
(based upon the amount of net revenues of the System available from
the preceding fiscal year of the System).
(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. service requirements to be paid on the certi-
ficates in the next succeeding fiscal year of the City exceed the
sum of (i) the amount sho\VTI to be on deposit in the Certificate
Fund at the time the annual budget is prepared, and (ii) the net
revenues of the System shown to be budgeted and available for pay-
ment of said debt service requirements.
(c) Following the final approval of the annual budget
of the City, the City Council shall, by ordinance, levy an ad
valorem 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.
SECTION 11: The City hereby covenants and agrees that
subject only to the pledge of the net revenues of the System to
the payment of principal, interest and reserve fund requirements
of the first lien bonds and the means and methods of accumulating
and maintaining all funds required therefor under the provisions
of the ordinances and proceedings pertaining to the authorization
of such first lien bonds, all the net revenues of the System, 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 becomes due.
"
SECTION 12: That as provided in the ordinance authorizing
the issuance of the first lien bonds, the City reaffirms its prior
covenant that as received all revenues and income of every nature
derived from the operation of the City's Waterworks and Sanitary
Sewer Systems shall be first deposited in an account of the City
designated "WATERWORKS AND SEWER SYSTEM FUND" (hereinafter called
"System Fund") and shall be pledged and appropriated as follows:
FIRST: To the payment of all necessary and reasonable
expenses of operating and maintaining the City's water-
works and sanitary sewer systems.
SECOND: To the "SPECIAL WATERWORKS AND SEWER SYSTEM
REVENUE BOND RETIREMENT AND RESERVE FUND" heretofore
created and hereby reaffirmed for the payment of the
principal of and interest on the first lien bonds.
After satisfying all paYments required under the terms and pro-
visions of the ordinances authorizing the first lien bonds, all monies
and revenues remaining in the "SYSTEM FUND" which are attributable
to City's Sanitary Sew€r System 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 WYLIE, TEXAS, CERTI-
FICATES FUND," hereinafter called "Certificate Fund"J
to the extent as provided in Section 9 , and
SECOND: To any other proper city purpose now or here-
after permitted by law.
SECTION 13: That from the pledged net revenues of the
System in the System Fund, the City shall cause to be deposited in the
Certificate Fund the following amounts on the following dates,
to-wit:
(a) Beginning September 15, 1974 and on or before the
15th day of each month through January 15, 1975, an amount
equal to one-fifth (1/5) of the installment of interest
to become due on the certificates on February 15, 1975,
or all pledged net revenues of the System remaining in the
System Fund (except $lOO) on such dates, whichever amount
is the lesser; and, thereafter, commencing on February 15,
'\l
1975 and on or before the 15th day of each succeeding
month an amount equal to one-sixth (1/6) of the next
semiannual installment of interest to become due on
the certificates or all pledged net revenues of the
System (except $100) remaining in the System Fund on
such dates, whichever amount is the lesser;
l
(b) In addition to the monthly deposits described in
paragraph (a) above, beginning on August 15, 1975 and
on or before the 15th day of each month thereafter, an
amount equal to one-twelfth(1/l2) of the next annual
principal payment to become due on the certificates or
all pledged net revenues of the System (except $100)
remaining in the System Fund on such dates, whichever
amount is the lesser.
'"
The monthly deposits to be made to the Certificate Fund,
as ,hereinabove provided shall be made until such time as such
Fund contains an amount equal to pay the principal of and interest
on the certificates to final maturity.
"
SECTION 14: 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 15: The City covenants and agrees with the
holder or holders of the certificates that it will maintain and
operate the System with all possible efficiency while any certifi-
cates remain outstanding and unpaid; that it will faithfully and
punctually perform all duties with reference to the System required
by the Constitution and law of the State of Texas, including the
making and collecting of reasonable and sufficient rates for sewer
services supplied by the System and the segregation and application
of the revenues of the System as required by the provisions of the
ordinances authorizing the issuance of the first lien bonds and
this ordinance; and that no free services shall be rendered by the
System to any customers, including the City and its various depart-
ments, and that sewer services used by the City and its various
departments shall be paid for at the same rates charged other
customers.
SECTION 16: The City further covenants and agrees to keep
proper books of records and accounts (separate from all other records
and accounts) in which complete and correct entries shall be made
of all transactions relating to the System. The City shall furnish
to the Executive Director of the Municipal Advisory Council of Texas
at his office in Austin, Texas, and to any holder of any of the
certificates at the written request of such holder, not more than
thirty (30) days after the close of each six months' fiscal period,
complete operating and income statements of the System in reasonable~
detail covering such six months' period, and not more than sixty
(60) days after the close of each fiscal year, complete financial
statements of the System in reasonable detail covering such fiscal
year, certified by independent auditors.
SECTION 17: Any holder or holders of twenty-five per-
centum (25%) of the principal amount of the outstanding certificates
shall have the right at all reasonable times to inspect the System
and all records, accounts and data of the City relating thereto.
SECTION 18: In addition to all the rights and remedies
provided by the laws of the State of Texas, the City covenants
and agrees particularly that in the event the City (a) defaults
in payment to be made to the Certificate Fund, or (b) defaults
in the observance or performance of any other of the covenants,
conditions or obligations set forth in this ordinance, the following
remedies shall be available:
(a) The holder or holders of any of the certi-
ficates shall be entitled to a writ of mandamus issued by
a court of proper jurisdiction compelling and requiring
the City Council and other officers of the City to ob-
serve and perform any covenant, condition, or obligation
prescribed in this ordinance.
(b) 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 waiver of
any such default or acquiescence therein, and every such
right and power may be exercised from time to time and
as often as may be deemed expedient.
The specific remedies herein provided shall be cumulative
of all other existing remedies and the specification to such re-
medies shall not be deemed to be exclusive.
SECTION 19: The City hereby further covenants as follows:
(a) That it has the lawful power to pledge the
revenues supporting this issue of certificates and has
lawfully exercised said powers under the Constitution and
laws of the State of Texas, including said power existing
under Articles 1111 et seq., and Article 2368a.l, V.A.T.C.S.
that the certificates shall be ratably secured under said
pledge of income in such manner that one certificate
shall have no preference over any other certificate of
said issue.
(b) That other than for the payment of the first
lien bonds and the certificates, the rents, revenues, and
income of the System have not in any manner been pledged
to the payment of any debt or obligation of the City or
of the System.
(c) That, as long as any certificates or any in-
terest thereon remain outstanding, the City will not
sell, lease, or encumber the System or any substantial
part thereof, provided that this shall not be construed
to prohibit the sale of such machinery, or other properties
or equipment which has become obsolete or otherwise un-
suited to the efficient operation of the System; also,
with the exception of additional first lien bonds issued
in accordance with the terms and conditions of the
ordinances authorizing the previously issued first lien
bonds and additional certificates to be secured by both
taxes and net revenues of the System hereby expressly
permitted to be issued (which may be issued on a parity
[insofar as net revenues are concerned] with this
series of certificates), it will not encumber the
revenues of the System thereof unless such encumbrance is
made junior and subordinate to all of the provisions of
the certificates herein authorized.
(d) To the extent that it legally can, the City
further covenants and agrees that, as long as any of the
certificates or any interest thereon are outstanding,
no franchise shall be granted for the installation or
operation of any competing sanitary sewer system, that
the City will prohibit the operation of any sewer system
other than that owned by the City and the operation of any
such system by anyone other than the City is hereby
prohibited.
SECTION 20: It is the intention of this governing body and
accordingly here recognized and stipulated that those provisions,
conditions and other recitals contained in the ordinances author-
izing the first lien bonds which bear upon the management of the
affairs of the System and methods of providing and administering
its net revenues shall be applicable as appropriate to the certi-
ficates herein authorized but in all respects subject to the prior-
ities of the first lien bonds.
SECTION 21: Each of the certificates herein authorized
shall be deemed and construed to be a "security," and as such a
negotiable instrument, within the meaning of Article 8 of the
Uniform Commercial Code.
SECTION 22: That the proceeds to be realized from the
sale of the certificates herein authorized shall be expended
and the same are hereby budgeted and appropriated for the
following purposes, to-wit:
(a) $22,750 - for a contract to be executed with
Bill Stroble, Mfg. Representative, E. I. DuPont
Aldy1. (D) Pipe, Arlington, Texas, for the
purchase ~f sewer pipe;
(b) $3,500 - to pay for engineering services to be
rendered by Henningson, Durham & Richardson,
Inc. of Texas, Dallas, Texas, in relation to cer-
tain improvements to be made to the City's
Sewer System.
(c) $3,125 - to pay for financial adviser services to
be rendered by First Southwest Company, Dallas,
Texas, in relation to the issuance of the
certificates.
(d) $625 - to pay for legal services to be rendered by
Dumas, Huguenin, Boothman & Morrow, Attorneys, Dallas,
Texas, in relation to the issuance and delivery of
the certificates.
SECTION 23: The sale of the certificates herein author-
ized to FIRST SOUTHWEST CO}WANY, Dallas, Texas, at the price of par
and accrued interest to date of delivery, is hereby confirmed.
Delivery of the bonds shall be made to said purchaser as soon as
may be after the adoption of this ordinance, upon paYment therefor
in accordance with the terms of sale.
SECTION 24: The purchaser's obligation to accept delivery
of the certiticates herein authorized is subject to their being
furnished a final opinion of Messrs. Dumas, Huguenin, Boothman and
Morrow, Dallas, Texas, approving such certificates as to their
validity, said opinion to be dated and delivered as of the date of
delivery and payment for such certificates. Printing of a true
and correct copy of said oplnlon on the reverse side of each of
the certificates, with appropriate certificate pertaining thereto
executed by facsimile signature of the City Secretary is hereby
approved and authorized.
SECTION 25: CUSIP numbers may be printed on the certi-
ficates herein authorized. It is expressly provided, however, that
the presence or absence of CUSIP numbers on the certificates shall
be of no significance or effect as regards the legality thereof
and neither the City nor attorneys approving said certificates as
tc legality are to be held responsible for CUSIP numbers incorrectly
printed on the certificates.
SECTION 26: The Mayor shall be and he is hereby author-
ized 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 27: That the City hereby covenants that the pro-
ceeds 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" obligations within the meaning of Section 103(d) of the
Internal Revenue Code of 1954, as amended, or any regulations or
rulings prescribed or made pursuant thereto.
SECTION 28: That fact that it is to the best interest of
the City to provide the funds needed to execute the contract
for the purchase of sewer pipe in order that said pipe can be
delivered at the earlirest possible date, constitutes and
creates an emergency and an urgent public necessity, requiring
that any rule providing for ordinances to be read and voted upon
at more than one meeting of the City Council be suspended, and
requiring that this ordinance be passed and take effect as an
emergency measure, and such rules and provisions are accordingly
suspended, and this ordinance is passed as an emergency measure
and shall take and have effect and be in full force from and after
its passage.
PASSED AND APPROVED this the 13th day of August. 1974.
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Mayor~7ftf(~ Wy ie .~:.-
ATTEST:
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City~~y, . ~t;e~ Wylie,
Texas
(CITY SEAL)
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NOTICE OF INTENTION TO ISSUE
CERTIFICATES OF OBLIGATION
TAKE NOTICE that the City Council of the City of Wylie,
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Texas, shall convene at 7:00 o'clock, p.m. on the 13th day of
August, 1974, at its regular meeting place in the City Hall of
said City, to consider the passage of an ordinance authorizing
the issuance of certificates of obligation of said City in an
amount not to exceed $ 50,000
for the purpose of paying all
or a portion of a contractual obligation to be incurred for the
purchase of materials and supplies, to wit: sewer pipe and con-
tracts for personal or professional services to be rendered by
attorneys, a financial advisor and engineers in connection with
the issuance of said certificates of obligation and improvements
to the City's Sewer System; such certificates-of obligation
to be payable from .ad valorem taxes and net revenues of the
City's Sewer System.
/s/ Donald R. Thomas
Mayor, City of Wylie, Texas
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MINUTES PERTAINING TO RESOLUTION
AUTHORIZING THE GIVING OF NOTICE
OF INTENTION TO ISSUE CERTIFICATES
OF OBLIGATION
THE S TA TE OF TEXAS ~
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COUNTY OF COLLIN ~
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CITY OF WYLIE ~
ON THIS, the 9th day of July, 1974, the City Council of
the City of Wylie~ Texas, convened in special session at the
regular meeting place thereof in the City Hall, the meeting being
open to the public and notice of said meeting having been given
as prescribed by Article 6252-17, Section 3A, V.A.T.C.S., there
being present and in attendance the following members, to wit:
DON R. THOMAS
MAYOR
R. C. DODD
DWAYNE BOYD
Em h\P..f:>l51KLER
KENNETH NALL
WILLIAM MARTIN
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ALDERMEN
and with the following absent: t<<ME Eda/4LO &"-/~4-
when among other proceedings had were the following:
Mayor Thomas introduced the following resolution:
"A RESOLUTION by the City Council of the City of
Wylie, Texas, making certain findings and
authorizing the publication of notice of
intention to issue certificates of obligation
for the purpose of paying all or a portion
of a contractual obligation to be incurred
for the purchase of materials and supplies,
to wit: 'sewer. pipe and contracts for personal
or professional services to be rendered by
attorneys, a financial advisor and engineers."
The resolution was read in full. Alderman Nall
made a motion that the resolution be passed. The motion was
seconded by Alderman Martin and carried by the following
vote:
AYES:
Mayor Thomas and Aldermen Dodd, Boyd, Btle1Lr,
NaIl and Martin.
NOES:
None.
The Mayor then announced the resolution had been passed
and adopted.
MINUTES APPR9VED,
this the 9th day of July, 1974.
~/ff~_,~
ATTEST: Mayor, Cit~wylie, Texas
, .,1") '..,-'
Gi~yf1~~~r~~'~lie, Texas
-.
(City Seal)
A RESOLUTION by the City Council of the City of
Wylie, Texas, making certain findings and
authorizing the publication of notice of
intention to issue certificates of obligation
for the purpose of paying all or a portion
of a contractual obligation to be incurred
for the purchase of materials and supplies,
to wit: sewer pipe and contracts for personal
or profession21 services to be rendered by
attorneys, a financial advisor and engineers.
WHEREAS, the City Council of Wylie, Texas, has decided
to finance the cost of purchasing certain materials and supplies
needed to make improvements to the City's Sewer System; and
WHEREAS, it is hereby found and determined that such
financing can best be accomplished by the issuance and sale of
certificates of obligation under the provisions of The Certi-
ficates of Obligation Act of 1971, as amended, such certificates
to be payable from ad valorem taxes and the net revenues of the
City's Sewer System; and
WHEREAS, it is further found and determined that the
amount of certificates to be issued shall include a sum sufficient
to pay contracts for personal or professional services to be
rendered by attorneys, a financial advisor and engineers in con-
nection with the issuance and sale of said certificates and the
improvements to be made to the City's Sewer System, and
WHEREAS, prior to the issuance and sale of such certificates,
the City Council is required to publish notice of its intention to
issue the same; now, therefore:
BE IT RESOLv~D BY THE CITY COUNCIL OF THE CITY OF WYLIE,
TEXAS:
SECTION 1: That the Mayor of the City is hereby authorized
and directed to cause notice to be published of this City Council's
intention to issue certificates of obligation in an amount not to
exceed $ 50,000 for the purpose of paying all or a portion
of the contractual obligation to be incurred for the purchase of
materials and supplies, to wit: sewer pipe and paying contracts
for personal or professional services to be rendered by attorneys,
a financial advisor and engineers in connection with the issuance
of said certificates and certain improvements to the City's
Sewer System; such certificates to be payable from ad valorem
taxes and the net revenues of the City's Sewer System. The
notice to be published (the form and content of which is hereby
approved) shall read substantially as follows:
NOTICE OF INTENTION TO ISSUE
CERTIFICATES OF OBLIGATION
TAKE NOTICE that the City Council of the City of Wylie,
Texas, shall convene at 7:00 o'clock, ~.m. on the l3th day of
August, 1974, at its regular meeting place in the City Hall of
said City, to consider the passage of an ordinance authorizing
the issuance of certificates of obligation of said City in an
amount not to exceed $ 50,000
for the purpose of paying all
or a portion of a contractual obligation to be incurred for the
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purchase of materials and supplies, to wit: sewer pipe and con-
tracts for personal or professional services to be rendered by
attorneys, a financial advisor and engineers in connection with
the issuance of said certificates of obligation and improvements
to the City's Sewer System;such certificates-of obligation
to be payable from .ad valorem taxes and net revenues of the
City's Sewer System.
/s/ Donald R. Thomas
Mayor, City of Wylie, Texas
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SECTION 2: That said notice shall be published once a
week for two consecutive weeks in a newspaper of general
circulation in the City, the date of the first publication to
be at least fourteen (14) days prior to the date stated therein
for the passage of the ordinance authorizing the issuance of
the certificates of obligation.
PASSED AND APPROVED, this 9th day of July, 1974.
~/~
ayor, City of Wylie, Texas
ATTEST:
Texas
(City Seal)
AFFIDAVIT OF PUBLICATION
THE STATE OF TEXAS ~
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COUNTY OF COLLIN ~
BEFORE ME, the undersigned authority, on this day person-
ally appeared
c. T. ~
, who, after being
by me duly sworn, deposes and says that he is the
~J'"
of the
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which is a newspaper of general circulation in the City of Wylie,
Texas, and published in the City of Wylie, and that he published
a true copy of the "NOTICE OF INTENTION TO ISSUE CERTIFICATES OF
OBLIGATION", hereto attached, in said paper on the following
dates:
.Jt41 tt
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, 1974, and
, 1974,
the date of the first publication being not less than fourteen
(l4) full days prior to the date set in such notice for the
passage of the ordinance authorizing the certificates.
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SW~RN AND SUBSCRIBED BEFORE ME,
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~j/,-.(I'" ,1974.
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L_--'" _.-'<- ,,/,:_ <_,~.?';--- - ~/f_"~_,, ' - -
Notary Public in and for Collin
County, Texas
(Notary Seal)