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Ordinance 1980-04 ORDINANCE # 80-04 AN ORDINANCE by the City Council of the City of Wylie, Texas, amending the ordinance authorizing the issuance of $400,000 "City of Wylie, Texas, Waterworks and Sewer System Revenue Bonds, Series 1980" to change the maturity schedule of said bonds; establishing the interest rates; ratifying and confirming all other provisions of the ordinance authorizing the issuance of said bonds; and declaring an emergency. WHEREAS, on the 26th day of February, 1980, the City Council of the City of Wylie, Texas, passed and adopted an ordinance authorizing the issuance of $400,000 "City of Wylie, Texas, Waterworks and Sewer System Revenue Bonds, Series 1980", dated March 1, 1980; and WHEREAS, on the date of passage of the aforesaid ordinance, the Council was advised the offer made by First Southwest Company and accepted by the City to purchase the bonds was subject to the right of the purchaser to alter or change the maturity schedule thereof and at a later date to establish the interest rates for the bonds in light of current market conditions and the terms and conditions for the issuance of additional bonds on a parity with the City's outstanding revenue bonds; and WHEREAS, the purchaser of said bonds has established the interest rates for such bonds and determined it to be necessary to alter or amend the maturity schedule thereof, and this Council hereby finds and determines there is an urgent need to proceed with the issuance and sale of the subject bonds, the interest rates the bonds are to bear are acceptable, and the maturity schedule should be amended as requested by the purchaser; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1: That Section 2 of the ordinance passed and adopted on February 26, 1980, authorizing the issuance of the "City of Wylie, Texas, Waterworks and Sewer System Revenue Bonds, Series 1980", dated March 1, 1980, in the aggregate principal amount of $400,000 shall be and the same is hereby amended to read as follows: "SECTION 2: That said bonds shall be dated March 1, 1980 shall be numbered consecutively from One (1) through Eighty (80); shall each be in the denomination of Five Thousand Dollars ($5,000); and shall become due and payabie on June 1 in each of the years and bear interest at the per annum rates in accordance with the following schedule: BOND NUMBERS INTEREST (All Inclusive) MATURITY AMOUNT RATE 1 1982 $ 5,000 8.50% 2 1983 5,000 8.50% 3 to 8 1997 30,000 9.00io 9 to 15 1998 35,000 9.00% 16 to 22 1999 35,000 9.00io 23 to 30 2000 40,000 9.00% 31 to 39 2001 45,000 9.00io 40 to 49 2002 50,000 9.00% 50 to 59 2003 50,000 9 .00io 60 to 69 2004 50,000 9.00io 70 to 80 2005 55,000 9.00% "PROVIDED, HOWEVER, the bonds of this series maturing June 1, 1997, and subsequent, may be redeemed prior to maturity at the option of the City, in whole or any part thereof, on June 1, 1995, or any interest paJ~ent date thereafter at the price of par and accrued interest thereon to the date of redemption; PROVIDED, FURTHER, that at least thirty (30) days prior to a date any of said bonds are to be redeemed, a 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 MERCANTILE NATIONAL BANK AT DALLAS, Dallas, Texas (the paying agent named in each of said bonds); and if the City shall have made available by the redemption date sufficient funds to pay the bonds called for redemption, any bond or bonds not presented for redemption pursuant to such notice shall cease to bear interest from and after the date so fixed for redemption." SECTION 2: That Sections 6 and 7 (prescribing the form of the bonds and the interest coupons) of the aforementioned ordinance, insofar as identifying and specifying the bonds of said series subject to being redeemed prior to their scheduled maturity, and the coupon containing conditional language as to the payment thereof, shall be and are hereby amended and changed to incorporate and reflect the changes in the maturity schedule for the bonds as herein amended. SECTION 3: That, save and except as hereby amended and changed, all other Sections and provisions of the ordinance authorizing the issuance of the "City of Wylie, Texas, Waterworks and Sewer System Revenue Bonds, Series 1980" are hereby ratified, confirmed and readopted. SECTION 4: That the public importance of this measure and the fact that it is to the best interest of the City to amend the maturity of said bonds and deliver the bonds at the earliest possible date, constitute and create an emergency and an urgent public necessity, requiring that this ordinance be passed and take effect as an emergency measure, and this ordinance is accordingly passed as an emergency measure and shall take effect and in be force from and after its passage. PASSED AND APROVED, this the 13th day of May ,1980. Ma~ olwy{l~as Clty 0 (City SE:al) INCUMBENCY CERTIFICATE THE STATE OF TEXAS COUNTY OF COLLIN CITY OF WYLIE ~ ~ ~ ~ ~ WE, the undersigned, Mayor and City Secretary, respectively, of the City of Wylie, Texas, DO HEREBY CERTIFY that on the 13th day of Mav ,1980, the duly qualified and acting members of the City Council and officers of said City were as follows: JOHN W. AKIN WILLIAM MARTIN HAROLD EAVENSON ROY HALL JAMES HUGHES ROWLAND KREYMER MAYOR ) ) ) ) ) ALDERMEN SARAH A. CONNELLY CITY SECRETARY/TREASURER TO CERTIFY WHICH, witness our hands and the seal of said City of Wylie, Texas, this the 13th day of Mav~1980. (City Seal) NO-ARBITRAGE CERTIFICATE THE STATE OF TEXAS COUNTY OF COLLIN CITY OF WYLIE ~ ~ ~ ~ ~ WE, the undersigned, Mayor and City Secretary, respectively, of the City of Wylie, Texas, who with other officers are charged with the responsibility in the issuance of bonds, DO HEREBY CERTIFY that to the best of our knowledge and belief, the following facts, estimates and events have occurred or are reasonable expectations as to the amount, and use of funds, pertaining to the issuance and sale of "City of Wylie, Texas, Waterworks and Sewer System Revenue Bonds, Series 1980", dated March 1, 1980, in the total principal amount of $400 000 (hereinafter referred to as the "Bonds"), to wit: (a) The Bonds were sold on the 25th day of February, 1980, at the price of par and accrued interest to the date of delivery, plus a premium of $ .- ~ -- ,and payment therefor occurred on the l5tn day of May 1980, the City having received the following amount from the purchasers: PRINCIPAL AMOUNT ----------------$400,000 ACCRUED INTEREST ---------------- 7,389.72 PREMIUM ----- -- - --------- ----.:.-- -- '0 ~- TOTAL AMOUNT RECEIVED ------$ L~07, 389.72 (b) The amount received from the purchasers of the Bonds representing accrued interest and premium, if any, was deposited in the interest and sinking fund for the Bonds to be used to pay the first interest payment to become due on the Bonds on June 1, 1980. (c)_ The balance of the amount received, $400,000 has been deposited in one or more construction accounts and allocated for various projects which are planned to be undertaken, accomplished and completed as shown in the attached Schedule A, which is incorporated herein and made a part hereof for all purposes. (0) Within six (61 months from the date of this certificate the City will have incurred substantial binding obligations or commitments for each of the projects to be financed by the Bonds, either by entering into contracts for construction, architectural services, engineering services, or land acquisitions; site developement; construction materials; or the purchase of equipment; such contracts or commitment involving expenditures in excess of 2-1/2% of the estimated total project cost of each project financed by the Bonds. (e) After entering into said contracts, work on the projects will proceed with due diligence to completion. (f} All of the spendable proceeds of the Bonds will be expended for project costs by the end of the three-year period from the date hereof. (g} None of the projects will be sold or otherwise disposed of, in whole or in part, prior to the last maturity of the Bonds. (h) Save and except for the Special Bond Fund (to pay current principal and interest on the Bonds as the same matures) and the reserve portion thereof (to provide a reserve in the amount of $ 69 000 which is less than 15% of the face amount of the Bonds and the outstanding and unpaid revenue bonds of the City payable from a first lien on and pledge of the net revenues of the City's vlaterworks and Sanitary Sewer System) heretofore created and reaffirmed in Section 12 of the Bond Ordinance, no other sinking fund or similar fund has been created or established for the Bonds. Moneys deposited in the Special Bond Fund will be expended within one year from the date of deposit. The foregoing certifications are based on facts, estimates and circumstances in existence on the date of this certificate, and on such basis it is reasonably expected that the above- listed events will occur. Furthermore, on the basis of the foregoing the proceeds of the Bonds will not be used in any manner that would cause them to be or become arbitrage bonds under Section 103(c) of the Internal Revenue Code of 1954, as amended, or the Regulations thereunder applicable thereto. To the best of our knowledge and belief, there are no other facts, estimates or circumstances that would materially change the above-recited conclusions. We further certify that to the best of our knowledge and belief, no Notice has been published in the Internal Revenue Bulletin with regard to the City under the provisi.ons of paragraph (a)(2)(iii) of Section 1.103-13 of the Regulations and the City has not been advised that any such Notice is contemplated. EXECUTED this May 15 , 1980, the date of delivery of the bonds hereinabove mentioned, being the date of issue as provided in the Regulations. Texas (City Seal) SCHEDUT....E A Re: $400,000 "CITY OF WYLIE, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1980", dated March 1, 1980 1. (d) Proj ect or Purpose Identification: Water System I mprovements and Extensions Amount Allocated :$ 400,000 Estimated Date (month and year) issuer will have entered into a substantial binding obligation or commitment for project or purpose described in p~razraph (d) of the attached certificate. Aprrl 3D, T980 Estimated Date (month and year) project or purpose v:ill be completed or acconplished January 15, 1981 Project or Purpose Identification: (a) (b) (c) 2. (a) (b) Amount Allocated: $ . (c) Estimated Date (mon~and year) issuer will have entered into a substantial binding obligation or co~itmen: for project or purpose described in paragraph'(d) of the attached certificate. (d) Estimated Date (month and year) proj ect or purpose \'1ill be completed or accomplished 3. (a) Project or Purpose Identification: (b) Amount Allocated $ (c) Estimated Date (month ano-year) issuer will have entered into a substantial binding obligation or commitment for project or purpose described in paragraph (d) of the attached certificate. (d) Estimated Date (month and year) project or purpose wrrr- be completed or accomplished 4. (a) Project or Purpose Identification: (b) Amount Allocated: $ (c) Estimated Date (month and year) issuer will have entered into a substantial binding obligation or cOIDnlitment for project or purpose described in paragraph (d) of the attached certificate (d) Estimated Date (month and year) project or purpose will be completed or accomplished 5. (a) Project or Purpose Identification: (b) Amount Allocated: $ . (c) Estimated Date (month and year) issuer will have entered into a substantial binding obligation or commitment for project or purpose described in paragraph (d) of the attached certificate (d) Estimated Date (month and year) project or purpose will be completed or accomplished Estimated Date (month and year) all funds will have been expended 6.