1258 ORD PROVIDING FOR ISSUANCE OF COP WATERWORKS AND SEWER IMPROVEMENT AND EXTENSION REVENUE BONDS SERIES 1952Agh Amik
~
~
oRDzNr-,z%TCE Eoo 125$
BY Ti;L LITY COUTdCIL OF T:l CITY 0F '_'ARSS, TLM-a, :ItO`JlU-
ING r OR M~ ISSUANGE 0F' CIT Y :;F IPARIS, TEXAS, 11hTERWORKS
r?ND SEWER lEi'ROV'.~i-:F,NT A'tvD El,'TI"IdSIVN I-LIn.;NliE BOivU::s. SE~TLS
1952, zr1 THE AcGR:DGATL aMouNr OF $550,000,00, BEAHTINc
TNTEREST AT Ti7, 1iATES i-l"NEITv`AFTEit S!~T rORTH; TO SLCCLM
FUNDS FO,xi Tl',L i'L'nCOSL 0F It~iPrcOVIl1G AlJi) uX`1'END"IIVG TI3r.,
.',I:TYtS IKkTE.110RKS :lii7 SEdLN. SYSTili; PM~SCRIBIhG TciE FOR',
OF 3(7NJ; PIEDGIiuG 'I'IE R:::VENttES OF THE CITY~ S WATEtWOFtIi5
APdu SETWI~R TO TI-M PC-.Y'i.NT OF T~''~: PRIINCIP:~L ANU
S I'v7rEREST O:' S'AIli 3OV13; I'RGVIDIVG FUh THr, E1CPEII!SB OF
i J:'L:LATIiti?C; 3nID SYSTEt,a.; i'L~KING Mii.TAI:d CCViItiAl\T.5 Ur Ti-M
CIT`_' Ih- REF]t:iEi1CE TU lfi~ BOrIDS l;ND 'I'I~ D FU;Ji~ FFU%~i
4tiHICH SAID : RIi;CII'riL .;.Nall ITJTEM,S'I' AFt~ TG ilE PATL'; PRO-
' 'TIDING `l'HAT T'rE HULiiLiZ OR HULiF;ffOF SkID i30NDa SFIALL
NEVLR i-ii":'i1', `iFiE RIGHT TO DE :.A.ND 11AYL-SE2' OF aAID OtiLTGAiTUM
OU'I' OF Ai\'I' FUI:D;~ ;~ISI~L U:~, Tt: BJ,~ R.AIS=LD 3Y TPXATICiTd, AriD
ru~PLALII:L~ ALL 0z iIP:APdCES IiI C0I1FLICi iltVIITfi.
VTE!ER:EWAS, the City Council has heretofore deterr,.ined that
= it is to the best interest cf the City and of its citizens that it issue
; revenue bonds of said City for the purpose of isrlproving and extending the
City' s'N'atero-rorks and 5ewer aystem; and.
vulqLliE~'iS, pursuant to such determinati.on, the City Council
of the City of Faris, "1'exas, passed an ordinance on Gctober b, 1951, caLling
' an election on the followrlng propositior.s:
PItOPWITIGI: NO. 1
"Sha11 the City Council of the city of Paris, Texas,
be authorized to issue the bonds of said City in the amount
of =:'~150,000.0OJ r..a.tur ir:g seriall,y in such installments as m.ay
be f ixed by the Cit,,, Council, the r,.aximzum maturity being not
nore than Twenty Five (25) years from their date, bPa.ring, in-
,
terest at a rate not to exceed Three and one-half (32~~~ per
cent pe r annizin., for the purpose of i=.proving and eictending the
City's :aater:,;orks 5ysteirL, -.1-o be issued in accordance with and
secured in t; e r:iannur provided iri Art,icles 1111-1118, both
inclusive~ of the .t~.e~~_~ed Civ~l Sta.tutes of Texas, 1°?_j, as
amended, each bond to be conditi-onea thut t}.e holder tnereof
shall :iever have the right to de?:-sar,d uayn.ent of said obligations
out of £unds raised or to be raised by taxation, secured by a
pledge of the net revE:nues frwn thE operation of said Water-
,~rorks System, znd if the aeti•;er 1r_inrovez_ier.t and IL'-xtension
~tevenue »onds are voted as provided in -'roposition T.o. 2, to
be secured additiona.ll.y by a pledge of the net revenues from
the operation of said. Sewer SzTstem.. 'I'rie probable .oeriod of
asefulness bein€; 50 years."
PR01'O~ITTO,T i~~0. 2
"Shall the Cit;T Council of the City of Paris, Texas,
be a.uthorized to is sue tl^e borrd s of s wiH City ir, the aniount
nf P:400,000.002 maturing serially in such installzients a.s may
be fix_ed by the City Council, the iaa.ximum ,naturity being not
more t?k:n Twenty Five (25) yearo from their date, bearir:g in-
te^est at a rate not to excEed Three ar.d one nalf (3,;,;) per
I
i '
Alk - - AMh,
cent per annuYa, for the purpuse of iriprozring anc ea"tendirig tYie
,ity's Se4rer S;-stem, to be issued in acecrdance with and secur-
ed in the manner provided in Articles 1111-I118, both ir.clusive,
of the Hevised Civil atatutes of Ter.as, 1925, as a*rlended, each
bond to be conditioned that the iiolcler tk:ereof shall never have
the right to der:and pay;nent of saiu obl'-gations out of funds
raised or to be ra.ised by taxation, secured by a pledge of the
net revenues fram the operatior_ of the Sewe: System, and if
the 'Jdaterworks i:mr)rovernent and ~.^;xtension 3evenue Bcnds are
voted as prov_ided in Yroposition Pio. l, tc be secured ad4ii:ior,aIly
by apledge of the net revenues fror:i the operation of said 'J:ater-
wor?cs Syste:n. lr~.e -orobable period of usefulness being 50 years."
; and
at the election held in said Cityo un the 30th
day of October, 1951, d ma. jorit;, cf the resident, alualified electors oT,,ming
taxable property in said 'City and wlio had duly renrlered the same for taxa.tion
votir.g at said electior. sustained the propositions to issue the bonds herein-
after described b~: tYie follo~~.ng vote:
PRoPoszTzoN No. 1
nFOR THI~, 13MU4~' ()F ':vf:T'~.~H,~GN.Ka I1,11PROVELENT
AhdD TXTEi?SIUN 1,`E"T~iJTi BOPJDS" 435 `Totes;
nAG4Il`dST TI-T; I33UriiCE, UF Ii11':-ZOT~;-
i4w~i~1i ~i~'L "~:~Tr,l~~SI~~i~T 'r~,V"~1VtIr~ BOnili;~" 107 Jotes,
?RUPWITIuN l'10. 2
nFOR `PIHE IS6'iJAPdCE UF SE`JhR IT~irii.OV'i=T AND
=Zdl:SI01`1 i ; 'Ei~UIE BOhDS" 4lali. Votes;
IrAGAII,IS1 TIir; ISSliA.r:CE GF aEP.'Eit Tld1PROVi~--E;T
1',.INL LX_P=:11:VI31V j~+~TFJIVV'1'J J111d~S" 98 VOIieJ;
and
TWDE'~-rFAS, it is consiaered to be to the best ir~terest of
the City that said borids be autherized in or_e issue secured by a first lien
on and pledge of the net revenues fror: the operation of the Cityts`.iatenlorks
and Sewer System; and
the City h2s authority, generall~r, to pass this
ordinance authorizing the issuance of revenue bonds for the purpose of iniprov-
ing and extending the City's '4aterworks Jewer System, under the Constitution
and Statutes of the State o° Texas, includin; particularly Articles 1111-111£3,
both inclusive, of the 1925 =Levised Civil Statutes of Texas, as arnended and
"hapter 163, kcts of the liegular Sess~ on of tre Forty Second Legislature; and
W;-ErU~ASI it is now necessary and -aroper that the City
Council p?°oceed with the issuance of such revenue bonds;
rE I'1 URD1;IIv:~.D BX TIi CI'TY COLJNICIL Cr TzE CT=° 0F I'A:iSS:
1, That to provide funds for the purpose of improving
and extending the Cityls bJaterworks and Sewer 'System, pursuant to the Con-
stitution and 3tatutes of tne State of Texas, includi_ng particularly Articles
1111 to 1118, both ir.clusive, of 1925 Revised Civil Statixtes of `1exas, as
a:nended, and Cha.pter 163, l~.cts of the 11,egu.lar 3ession of the Forty Second
;
Legislature, as asnended, there shall be issued "City of Para.s, TeXas, ,.,a er-
works and 6ewer Improvement and Extensiar_ Revenue Bonds, aeries 195,22", agQre-
gating Five Hundred Fifty Thousand (ti550,U0C.U~j Dollars, nwnbered Gne (1)
to Five liundred Fifty (5501, botn inclusive, of the denamination of One Thousand
(~,~1,QGG.00; Dollars eacho
2. That said bonds shall be dated Januar;T 1, 1952, and
shall bear interest at the rates as follows:
Bonds Nos o 1 to 01 r, botti incl, p 2-3/4~ Per annurr.;
3onds Pdos. 346 to 550, " " __I per annum,
pa;;•able October l, 1952, and semi-annually thereafter on April Ist and
October lst of each year; principal and interest or said bonds shall be pay-
able in lawful ;iioney of the United States upon presentatior, and surrender of
bond or proper coupon at the l,lercantile :1,Tational Bank: at Uallas, llallas,
Texa.s, or, at the optior of the holder) at the Libert3r Prational Banlc, Paris,
Texas, and the~l s,za.ll ~~ature as follows:
BONliS 11 ~ 1i13.1, rtS
KkTUFc:i`iY
LATES
AhOUNTS
1
to
10p
both incl.~
October
11
1952,
~;l0~OG0.GU _
GO
OOO
15
11
6
to
to
25,
40
" ft
" "
October
October
1,
l,
1953,
1q ,54,
o
,
15,000.~J0
/a1
to
60~
~
" "
October
l,
1
1955,
1~56
20,O~'O°u~'
OOfl.00
2U
61
bl
to
to
~0
100P
October
October
1
1,
,
1957)
,
204000.00
101
to
'
125,
October
l,
1955.,
25,000,00
25 CO0,00
126
to
150.,
October
October
1,
l
1959,
19b0
P
25PCGO.00
151
176
to
to
175,
200
October
,
1,
p
1961,
25,000,00
201
Lo
,
225,
" "
October
b
1,
1
11;62,
1963
25,000.00
30,OC,C.00
226
256
to
to
255,
285
" "
" ~
Octo
er
October
,
l,
,
1964,
30,000.00
286
to
,
315,
October
b
t
O
1,
1
19651,
1966
30,000,OC
U Gi;G.CC
3'
3?5
3r~b
to
to
345,
315
er
o
c
October
1,
1967,
~U
3c),000,
376~
t~
,
~
October
t
b
O
1,
1
196e>
1969
,00
>5,UOG
;5,GGO.OC
~o
r
~~j~
o
er
c
Uctober
,
1,
,
1970,
35,OCO-00
81
4
t 0
515,
October
l,
~
1,71,
0
35,000.00
000.00
35
516
to
550,
" "
October
1,
1
/72,
,
Alsk, ANk I
3. In F3onds Numbers Three l:undred Fort,y Six (346)" to
Five Hundred F:.fty (550), both incluaive, the City reserves the option of
calling each such tond for redeMption prior to maturity on any interest pa.y-
iAent d.a.te on and after Octnber l, 1966, at par and accrued interest i;o date
so fixed for redemption. Thirty da;rs' rlotice of such call shall be given iri
wr_iting to the place of payrpent and notice shall be published in a financial
i:,ublica.tion published in the City of New York., iqew iork. Said notice shall
appear in said publication ir at least one issue, the date of saici issue being
not less than t'airt~ da;;rs pr ior to tne date so fi::,d for redemption. ILI any
sucYl bond is Ca.i led fo1^ redear.ption in saicl manner ar_d if funds sufficier.t to
pay the redernptian price shall r,ave been duly placed in the bank of payment
by the date fixed for redemption, it shall not thereafter bear interest.
4. Eacli oi said bonds shall be signed by the :.ayor and
counLuersigned by the City Clerk and the corporate seal of the City of Paris,
TexG.s, shall be impressed upon each of therL. lhE facsimile signatures of the
aayor and Cit~r Clerk :naST be :iit,hographed or x~rir_ted upon the coupons attacl-ed
to said bonds and shall have the same effect as if the~Y~ iiad been sigr~ed by them.
5. That said bonds shall constitute special obligstions
of said City of Paris and each of said bonds shall contain the provision that
the holder hereof shall never luave the right to demand paynient of said obli-
gation out of funds raised or to be raised by taxation.
6. The forin oz said bonds shall be substa.ntially as
f ollotvs :
r.0 . 'pl, 000 o C10
UTaTED STATTES OF f^1 Fti l 1
~ 0l~u1Cl~J
al
CCMTY OF LA1:AR
CI`l'X Or PAI-?.IS
ttiA'T'.~R'gORKS j,IJD SEuF,,R R~i'HOITr1;LidT aND t,Xr!'EI`;S1UN
R:,-TET:'~UE BCIdD
aZT?IEs 1952
T::e Cityr of Paris, in the Count~~ of L~rnar, :~tate of r1eXc~.S,
a municipal corporation aul;r irlcorpc~rated unaer the lavrs of the atate of Texasp
for value rece-T2CI, hereby acknowled,-,,,es itself indebted to and pror:iises to pay
to the bearer hereoi on the lst day of October, 19 , tYie sum of
UIV~. iH0U3,A1,iD DOilA1-0
in lawful nioney of the United Stai,es of America, with interc:;,t thereon from
Ank - - Amik I
date :Zeleof at the rate of per cent pe-r annurr~, payable October 1, 1952,
and semi-annuEZlly thereaiter on .Prii lst and Uctober lst of ea-ch year, until
the principal sun, snall be naid, whicn interest is nayable in lawfui money of
the United States of Arqerica, upcn presentation and. surrender of proper coupons
as they severally b--corne due, botl-: principa.l and ir.terest Uein4~ payable a{, the
T`ercantile I`latiorial Ea:-:c ai, Dallas, Dallas, Texas, or, at the option of the
izolder, at the Liberty Tvational t3azik, Yaris, i'exas.
'i'his bond :is one of a series of bor:ds of like texior and
effect, exce;it as to nar.lber, irii,erest ra.te, r.~aturitJ and right of ?orior re-
demption, nwnbered One (1) te ?ive :Iu-ridred F:fty (550), both ir.clusive, of the
denomination of Crle Thousand (<;r1,000.00) jollars eaciz, aggregating rive Hundred
FiftST Thousand W'550,000,UG) :)ollars, issued by the Cit,,r of Paris, Texas, for
tire purpose of improving and extending the City's wraterworks and Sevrer SJSte3:-.,
in accord3nce with the Constitution and laws of the State of `l'exa.s, and the
Charter of said City, and pursuant to an ordinar.ce passed by the City Cour~cil,
duly recorded in the nlinutes of said City Councii.
T'r:e d.a.te of this bond in conforrnity ;aith the ordinance
above mentioned is Janua.ry l, 1952,
%*(The City reserves the option of cal)_ing this bond for
redemptioil prior ta nia.turity oii any ir,terest pa3.ment date on and after
October 1,, 1966, ut par and a.ccrued interest, provided thirty days' natice
of such call is givsn in writirg to the place of payment and provided said
r.otice is published in a financial publication published in the City of New
York, Pdew York. Said notice shall dppear in said publication in at least
one issue, the date of said issue being not less tizan thirty da5-s prior to
the date so fixed for redemption. If such bond is called for rede,mption in
said manner and if funds suffi.cier.t to pay the redemptior. price shall have
been duly placed in the bank of payment, U~ the da.te fixed for redan;Dtion,
it sr,all not thereafter bear interest. j
Tr.e holder hereof shall never have the x-ight to deciand
payrr.ent of this obligation out of f:znds ra4.sed or t..e be i~uised by taxdtion.
Each successive helder of tliis bond ar_d each successive holder of aach of the
coupons hereto atta.cxied, is conclusivel y presumed to forego a-nd renounce his
Adlbk Alk I
equities ir: favor of subsequer.t holders for va.lue without r.otice, and to agree
that this bond ar.d each of the coupons hereto attached, rnay be negotiated by
delivery by any person ha.ving possession hereof, howsoever such r,ossession
niay have been acquired, and that any holder who sha?1 have tal:-en this bond
or any of the coupons from any person for value and without notice, trereby
has acquired absolute title t;iereto, free frora ar.y defenses enforceable
a;ainst any prio= r,olaer and free fror.i all equities and claims of owriership
of an3T such prior holder. ilze Citi= oi Paris and its officials and the paying
agent hereinabove naned shall riot be affected by an,r notice to the contrary.
i'ne City res--rves the right to issue additional bonds on
a uarity with such 'ocr.ds for waterworks and se.:er improvements and exter.sions,
under the conditi-ons stated iil the ordynance auth^rizirg th~.s bond, said bonds
being paya:,le iror che san:e sou.rce as are the Bonds of this issue and secured
by the sane revenuesand shall be on a paritdr with this issue of bonds.
Iii'Z I`1' IS 1-L.ktEBY MRTIFTEll aF1u FtZCITEU that the issuance
of this bond and the series o'L which it is a part, is duly authorized by law
and by a r,~a, jority of the resident, qualified electors o;rning taxa.ale property
in said City, and who have duly rendered tk:e same for taxation, voting at an
election held for that purpose within said City; that all acts, conditions
and thin;s required to exist precedent te and in the issuance of this bond
to render the same lawful and valid have been properl;; done, 1iave happened
and been performed in regular and due t:Lne, forra and manr.er as required by
the Constitution and laws of the atate oi Texa.s, and the ordinance iierein-
above ;nentioned and that this series oT re venue bonds does iiot exceed any
constitutional, statutory or charter limitations, and that provision has been
7:.ade sor the payrnent oi the principal and interest of tliis bond and the series
of which it is apart by irrevocably pledg:ng to the payment thereof net
revenues of the Watervrorks and aewer S;istem of the 'V'itlr of Paris.
IN TEa`lII.CNY v,,TM:::tEUr, the ("ity Councii of the Citu of
Paris, Texas,, has caused the seal of s aid Cit;T to be impressed hereon -urf.d this
bond to be sigr.ed by the La~ror of s~:id City and countersigned k~y the CitJ
(;lerl., and. has caused the annexed coupons to be si.gned bJ the facsixnile
Adh Ak I
signatures of the i,lavor a.nd City Clerk,
kia-yor, Cj.t-v of Paris, Texas.
' COUA:TERSIGi"Fr,D:
C~ .ty Clerk, Ci+~y of ?'aris, iexas,
*(Bcnds Nos. 1 to , both incl., per ar_nur,;
Bonds Nos. tc , " 1' ;yo per annum. )
**(Lhis paragra..ph sb.ovla. be or7ittcd frorri Bonds Nos, 1 to 345, both incl. )
7. `ihe forn of said coupons shali be substantially as
follows:
OT\: 'I'rii:; 13T DAY UF
, 19
The CitJr of r'ar-is, `l'exds, out of revenues svecified in
t'-ie bond to which t his coupon is attached, will pav to the bearer *(unless
the bond to Urhich this coupon is attached shall riave been previousl;,r redeeri-
ed in accorda,nce witn it;s ter::s)' , at tr~ Lercantile P~ational Lank a.t ilallas,
La.llas, '1'exas, or, ' ti7e o-ptior: aj' the holder, at the Liberty T:ational 3an'.{,
-'aris, ''exas, tr.e sum of
~
Uollars in lawiul r;oney of the linited States o#' A:norica, said stul, being
months' interest due that dav on "Citv of ?aris, l'exas, 4aterwor'_ss
and Sew.er :Lni.,rovement and Extension -'Leve~ ae Lord, L>eries 1952", beari.ng
the nwnber hereiriafter specified., d4ted januar;= l. 19,20 T?Ze holder nereof
shall ri--ver have the ribht to denand ;oa~^.rient of this obli-ation out cf f'unds
raised or to be raised ay ta::ation. Bond Nio. .
City ;Clerk Ilayor
-;(ihis parenthetical expression snall 're prinIL-ed only in coupons r,:~.turir.-
ADril l, 1967, and su'asequent
8. The forr: of Cor. ~troller' s cezz°tificate, which shall
be larir.+ed en the back of ea.ch bard shall 'ue subst,ar.tially as follows:
OFFI-CE OF COILP`I'PGTLLH .
I i:.~_!,LY C.L.:LrrTF'Y that there is on fil.e ard ofl record in
_ _ - I
m.Tr office a certi ficate of t'Ze :%ttorney General of the State of Texas to the
effect that tnis bond ha.s been examined by h;m as required by lavr, and that
he f inds tha.t it ha,s been issued in conformity with the Constituticr and Iaws
of the atate of 'Pexas, and the viiarter of :;aid City, and tha.t. it is a vzlid
and bi::ding special obla.gz.tion af the City of :'aris, `I'ex4.s, payable frcaa the
reve-ques pled~ed to its payr:lent b-r and in the ordinanc- authorizing same,
and said band has 'Uhis day been registered by r:ie.
,:fiT.,rL'aS M" i:~.I!D and seul of ot'fice at Austin, Texas,
CorrLptroller of ='ublic ."_ccounts of the
atate of Texas.
S_,AL j
9. (DL;'ii~:Ii'IuI,S) (a) lhe term "S;,Tste.~`' as used in this
ordinance, shall r,lean the Cit;r' i lvla,ter~,;orks and Sewer System, including all
present and. Pzture extensions, adcitions, replacements and im-)rover:ients
tYie re-to 0
(b)' The terrn "i,"e+ ievenues", as used in this ordina.nce,
s!a1.1 mean the oross rc~venues of the :'~jste,:,_ less t:~E expense of operation
and ma.inter.ance, including all sala,ries, la'oor, Iteria.ls, repairs ana ex-
tensiens necessar,, to render efficier.t service, provided hot,rever, that only
such repGirs and e°teiisions, as in the judginent of the ~ity (~ouricil, reasonably
and fairly exeNcry.sE;d, are necessur-r to keep tr.e plant or utilit,~, in operation
and render adequate service -co thz City ar_d the inhabitar.ts thereof, or such
as raiiLvht be recessax-y to ;iZeet so,riie phvsical aecident or cor.dition vrYii.ch woul-d
otherwise i_ipair tYie Bonds author? zed by- t1his ordiriance and any additiona
bonds rexritted to be isaued under 3ection 20 hereof, snall be ded.ucted
iri determinirig "n:et Hevenues".
(c) The terru "Bonds" shall mEan the ~P550,000.00 of 'oonds
autnor-i_zed bzr tnis ordir-ance.
(d) 'lhe terr.? "rLdditional 3onds" r.:eans the Adciitional
Bonds wnich tie vi1;J re7erves the right to issuz under S: ction 20 hereof.
10. (PILDG::; The Net Aevenues oi the Syster, in an anount
sufficient to establish and i.iaintain tiie Funds nereinafter provided are riere-
bv irrevocabiy pled.r;ed for the payr_Zent of the Fsonds and tr:e l.dditional Bonds~
,dk _ r
if issued under the cond.i.tions and in the manner specifieci in this ordinance,
a.nd the interest tiLereon, and it is hereby ordained tha-L the Bonds and the
Additional 3onds ir so issued, and the i.r.terest t::°T`POT1 shall constitute a
f'irst lien upon said Ivet 1-tevenues.
11. (il"ITES) `I'he City covenants and agrees with the
Izolders of the Bonds and Additional Bonds if and wfien issued:
(a) That, it tiJi11 at wll tirries charge and collect for
services rendered by the Syster:: rates sufi'icient to pay a11 operating, inain-
tenance, deprecia.tion, repLace:ent and betterrnent expenses, and other costs
deductible in deterrnining "i'iet ~-evenuesi' as here~.ri defined, and to pa.y the
interest on and principal o{' the Bonds and to establish and.:,:iaintain the funds
as hryreinafter -orovided.
(b) If the Additional Bonas are issued, or if the :i-,-stem
should become leQall;; liable for any other indebtedness, the City wili fix
and maintain rates and collect charges for the services of the System suffi-
ciert to discharge such ir.debtedness.
12. (FLTP1Da) All revenua derived from the operation of
the System, sha11 be kept separate from other funds of the City. To chat
end, the follotivinE special 'Lunds are hereby created:
(a ) City of Paris, Yuaterworks and Setirer Iniprove-
nent and :,~xtension ;t,evenue : und, hereinafter called ":ievenue
Fund";
(b ) Citv of Faris :qaterworks and Sewer :Cmprover:ient
and Lxtension Fievenue Bonds lnterest and dederription I'und, here-
ina_fter called "Interest and 111edem;otion Fundll;
( c ) City of Paris :4aterworks and Sewer Improvsmer.t
and Extension ievenue Bonds, aeries 1952 Fieserve Fund, herein-
after calied "Reserve rund";
(d) City of Yaris 4aterUaork5 anu. Sewer Ir.iprovement
and i:xtersion Iievenue Bonds, 3eries 1952 ContinE;ency and :lL1-
prove,_.ent Fund, hereinafter called "Contingency a.nd Improve-
me.nt Fund".
_ _ . I
13. (~,VEtirliE FUIJ1.)) A11 revenues of every naturre re-
ceived thrcugl-i the operation of the S,yst en, sha,ll be deposited frorr: day to
daZT, as collected, into the Revenue Fund, and the reasonable and proper ex-
penses of operatirig and raaintaininr the S,yster:, including sc.].ari.es, labor
and materials sha71 be paid therefrom upon a;:>proval of the Ovity Council, The
` City Treasurer shall not n?ake any disbursernent from said Furd for repa.irs in
: excess of 0250.00 or for extensions, except pursuant to a resolution adopted
by Lhe City t%our.cil declaring that it is the judgerwnt of the i.ity Couricil
that such repa.irs or extensions are necessarf to keep the pl.ant or utility
in operation and rerdex adequate service to the Cit,y and the inliubitanrt,s
tiiereoi, or t hat such repairs or externions are ne cessary to :w.et scirte phSTsical
accident or condi-t ion which wo l:.d otherwise impair tY:e ~orx~s and such
resolution, in either ca.se, shall recite the facts and reasor.s for such
judgnent. Certified copies cf such resolution shall be flzrnished without
cost to rsondholders requestirig the sarne. Such resolution shall not be binding
or oonclusive upon a-ny 3ondholderQ The rever.ues oi the System r,ot actually
required to pa,y expo-nse5 and costs incurred as pericit+ed ty this aection shall
be deposited, to the extent required, in the other furxls created by this or-
ciimnce, each of which shall Yave priority t'r..ereto in the order in which they
; are treated i.n the follovn_ng sectic:as,
14. (IT1z`E~~EST ru,-li iZEDaiYTIOIV FUNU) On or before the
10th da,r of cach montr., beginning january lU, 1952 and contir.uing through
`s
' September lU., 1952, t'_ne ',ity shall deposit in the Interest and :6'edemption
Furrl an amount of r, one.y not less thar~ one-ninth of the riext installxnent o_~
principal and iiiterest ar.d b,~ginnink: Uctober 10, 1952, nand on o: before the
lOth da;;T of each month thereafter, the "V'ity shali deposit izi the Interest and
' riedemption r'und an amoLu:t of ^:oriev not less than one-sixLh of the next semi-
anriual installnient of interest and one-twelfth of the riext ;ziaturing principal,
The arriour;t receivec, from tlie purchaser of the bonds a.s interes-t accrued thereon
to the date of delivery, and the proceeds of the borids found rDt to be required
far the completion of the waterworks ar.d sewer imprevements and extensions,
shall also be placed in the lnterest ancl tiedemption Fund, which sha.ll re(ilce
by such araount the sums which would otherwise be required to be pla.ced ir_to
Alk ~ - Ah
' the Ir:tere::,t tand Redemption I'uncl fram thE ievenues of the System,
15. (RESM11E FUND) On or before the lOth day of each
; znonth, beginna.ng Januarj 10, 1952, there shall be deposited in the tieserve
Fund an amount of money equal ta 25% of the a.rqount then required ta be paid
into the Interest and itedan?tion Fundo Trre Reserve Furri shall be used to pay
prir.cipal of and interest on the Bonas fallit~; due at any time when tiiere is
not sufficient money avaiiable in the Interest and ttedemption : und. Pdo pay-
ment need be ma.de irito 'Uhe aeserve Fund after there shali have been accumu-
lated in said fund ar, an:ount equal to `;~40,000.00, except that when said
:teserve Furid is reduced beloUr that amour:t, payr,Lents into ths fund sha11 be
resi.u;~ed and continued until such tame as the fund tip-s been restored to such
sum. T~ioney in tY:e -teserve Fund saa.y at the option of tize 'aity be invested in
direct obligations of t:~- United States of America having n,atiirities not in
; excess of 'Uen jrears frora the date of the making, of such investment. kny obli-
' gations in which i.:oney is so invested shall be kept in escrow in the I~.ercantile
' 1`uationai Bank at Dallas, Lallas, '1'exas, and shall be promptl; r sold and the
'proceeds of sale a,pulied to tYle rF.aisincr of pay::.ents required to be uiade froni
the :teserve r'und, wY:enever such payments are necessary to be ma.de ur,u.er this
'i 3ectio%. The deposits into this Fund shall be sabordinat: to tliose required
` to be :.iade into the Interest and 1tedemption r'undo
150 (CONTIPvU:~ivGl tJ~IU II,J'iiOVE,~ENT FU'11Ii) On or before
'Uhe lOth day of each rnonth, beginning Januanj 10, 1952, ti:ere shall be deposit-
ed in the Contingencsr and :l.mprovement r'und the surn of „:200.00 per Inonth until
; the sum of ~.~l:i,OG0o00 has been accumu7_ated. In the event such al;iount sha11
be depleted said rriontnly paynients snall be reswsLeu and continued uritil the
full amount has been restored. I~~oney in the U'ontinoency and Improver::ent Fund
may be invested under the conditions set forth in Section 15 relating to the
` invest:zient of monies in the reserve account. '1'his fund shall be used to pdy
the cost of necessary or er:ergency reDairs, under the cireumstances and to the
extent perrr.itted by law, for the payrr.ent of which no other funds are availablea
li. (LLrICILNCM:a IN rUNDS) If in ar.y fiscal year the
Cit,, sha.ll~ for any reason, fail to pay into the Intere3t arid i~edemptior. F'und~
, the Heserve Fund and the :ontingency and Improverrient Fund the full amounts
above stipula.ted., asnounts equivalent to such deficiencies s:zall be set aDart
and paid into said ilunds from the first available and unallocated revenues of
the folloi,ring fiscal year or years, and such payjnents shall be in addition to
the amourits hereinabove provided to be othei^v,rlse paid into said Funds during
such fiscal year or years.
la, (EXCE:33 jc~VLiJUES) Any revenues in excess of t,zose
required to establish ar.d maintain the runc?s as above required may be used
^ for the redemption of Bonds or Additioi:al Bonds then eligible for prior re-
demptiori, or ior the par-Aer.t of any lawfuily issued subordir-ate lien water
, and sewer bonds, or for extensior.s of the Systeni to the extent riow or nereafter
permitted by law, and if, in the opiniori of a couLpeLent and generaliy recogniz-
ed engineer, such elttensions will produce sufficient revenues to vay for their
r;aintenarace and operation and w;yll impose no additional expense on the ther
existing system, or for anf other lawftiil purpose,
19. {;;:;CuitilTY GI' rUIV-DS) All funds created by this
ordinance sha11 be secured in the manner and to the fullest extent permitted
by the laws oi the Sta.te of Texas for the securi:ty of public funds, and su:h
I'unds sha11 be used only for the punposes permitted in ti:is ordinance.
20. (ADDITIGI"~AL 3UNDS) The City reserves the right to
' issue Additional Bonds, which vrhen issued, shall be secured by and payabie
from a first lien on and pledge of the r~et revenues of the systern in the same
~ manrier and to the same extent as are the bonds authorized by this ordinance and
' such bonds sliall be in all respects of ekaal dignity wit'li the 3onds. 'I'he
Additiondl 3unds r.iay be issued ii, one or r:Lore installments provided, however,
'Uhat n one of the Additi onal '3onds sliall be is sue d unle s s:
(a) Lach of the Funds created by this ordinance contains
the anount of uoney then required to be on deposit therein;
(b) The Net Larnings of the Syster.l for the twenty four
months .zext preceding the date of the issuance are equal to at least 1-1/2
tixr.es the requirements for the payinent of principal and interest on the then
outstanding Bonds and Additional Bonds for the year when the arnour,t of such
requirements is greatest, as such Net Earnings are shown by a report of a
ce:tified public accountant, `l're tem ":Jet Earnings" as used in this Section
Ask ` - Am
shall mean the gross revenues after deducting the expense of operation a.-Id
r.aintenance but not deductino ex,nenditures which under standa,rd accounting
practice sha11 be cha.rged to cdpital expenditur.es;
~
(c) A competent independent engir.eer certifies . _Ln Varit.;nb
his opinion as to annu&l expenses and incorne and Net Ea-r-riings of the Systc,n
throughout the life of the Bond.s and the xdditional Bonds, anu. such certificate
sYiows that the average annua.l i~et Earnings frorn the System will be at least
one and one-half tirites the requirements for the payr:lent of principal and in-
terest on the
then
outstandir~,
}3orlds and the Additional Bonus for the year when
tne wnount of
such
rec~;uire~~,ents
is the greatest;
(d) 'i'he.t the proceeds of such bonds sha11 be used solely
for the iiiaking of renewa'Ls, replace-ments, irnprovennents and exter.sions of the
watertiror'cs and sewer systeri which niay ba deterriined by the Cit~T ~%ouncil to
'oe necessary and econo.nically feasible;
(e) 'Lhe xdditional 3onds are made to ma.ture October 1
of each of the years in urhich they are scheduled to :aature;
(f 7.'he ."vdditional Bor.ds previouslY shall have been voted
: by the qualified property taxpaying voters of the t.itf.
21. (i~xlNT ;T,INCE ~iTv,j Jx'~iI'lCa: j. lhe City shall maintain
the System in good condition and operate tr.e sar:ie iii an efficient manner and
at a reasonable cost. ao loriJ a.s any of the bonds are uutstanding the City
agrees to r;tairitain insurance for the benefit of the holde^ or holaers oi the
bonds, on the S3rster: of a kind and in an amount -Yhich usually would be carriect
by private co,npanies engaged in a sirniiar t;rpe of Uusiness. i'vothing in this
ordinance shall be constnied as reqairing- the i:itJ to expend any funds which
are derived from sources other than the opsration of the System, but nothir.g
herein shall be construed as preventin,; the CitJ from do:.ri`; so.
22. (ACCOUNTS AIvD rISCtiL ~i,Aii) The City sYiall keep
p:oper booi;s of records and accounts (separa-Lle frorn a,ll other reccrds and
accounts) i.n h,hich complete and correct entries shal.l be made of a-7_1 tr~:ns-
actions relating to the System. The City will opera.te the, aystem and wi11
keep its books of recards and accounts on the basis ef a fiscal_ jrear ending
a December 31p
~
.r _ Adik
23. (ACt70UNTE:G idsPON,TS ) 'rior ta Januar5= l,, 1953, and
prior to January lst of each year tl-iereafter, t'r,e City will furnisn (without
cost) to C. 1"'. B urt and Company, Dallas, Texas, and any Bor:dholder who may so
request, a signed or certified copy of a report by a certified public account-
ant coverirg the next precedirg fiscal yenr showing the followirk; infoimiation:
(a) Iricome and J.'!""xpense Stater.:ent;
(b) Balance Sheet;
(c) Accountant 's comsnent regarding the raa.nner in
which the "ity ha5 complied -aith the requiremients of this ordiriarice,
and Yiis recorziendation for any changes or inlprove:nents in the
operation of the Systeni;
(d) List of insurance pol~cies in force at the end
of tYie fiscal year, shawing as to each palicy,the risk covered,
the nar.ie of the insurer, and the expiration date;
(e) 'ihe number nroperties connected with each sy-sterL
and the 'Uetal incer,ze from each syster:i for the year;
(f) The nur.iber of umetered customers of each system
at the end of the year;
(g) Tre number of gallons of Nrater registered through
the r:iaster meter and the num.ber of gallor.s sold during the year.
24. (I;dSPECTIGN). arzy nolder or holders of Boxids sYiall
have the rir;ht at all reasona'ole tiir:es to inspect the System ar.d all records~
accounts and data of the 'it`T relating tl-iereto.
V
25. (3z'ECI.:Z ~;OUD?ANi`"S). Tne City hereby further
covenar.ts as iollows:
(a) That it has the lawful power tc pledge the rever.ues
supporting tYiis issue of bonds and has lawfully exercised said povrar under
the Constitution and laws of the Sta.te of Texas, including said power exist-
ing under Xrticles 1111 to 1118, both inclusive, itevised Civil Statutes of
the State of Texa.s, YTlt,il anienclments thereto; th2t the Bonds issued iiereunder,
and the Additional Bonds, when issued, shall be ra.tably secureci unuer said
pled;c of income in sucYi manner that one bona sha.11 have r.o preferenue over
a.ny other bond of this issue.
. Alk Adlhk
(b) Tne CitNr covena.nts and represents that ot'Aer than ior
ti;e payment of the }3onds lzerein provided for, the rents, rever..ues and income
of the System have not in a.nrj m.anner been ;?ledged to tYie payrnent of any debt
or obligation of the City or of the S;;-stem,
(c) That, so lont as any oi said Bonds rer~air. outstandir~~,
ihe ~ity will not sell or encu.mber the JySte'.": or any subs-tantial nart therPOf,
and that, with tl-ie exception of the Additierial Londs expressly permitted by
thi-s ordinance to be issued, it tiyzll not encur:ibQr the revenues thereof unl,ess
such encusr'or2nce is r^ade junior and subordinate tc all of the provisions of
~his ardinancep
(d) Nio free service of t'cie ')'ysteir, shall be allowed, and
shoula the Lity or any of its agencies or inst rument alit ie s rr.alce use of the
services ar.d facilities of the 33,ster., payment oi the rea,sonable value t'r.ere-
of shall be r.;ade by the J-Ity out of funds fronl sources other i;::ar. the ravenues
and income of the Systera,
(e ) 1o the extent that it le7aliy TT?a.y, the ~itSr further
covenants ane3 agrees t,ha.t, so len=:; a,s any of tr.e Dorids or Ad.Citional Bends
or any interest thereor are outstanding, no franchise shall be gra.nted ior
t'r.a installation or operation of a.ny competing water system, tnat the Ci'uy
wzll prohibit the operaticn of a.ny water and se:,rer systern, other than that
owned by the Citz-, and the oper~:.tion of any such systerl by anyor.e other than
this "'ity is her-eb~- prohibited,
26. (B0T1JS AfLw SPLCI.AL OBLIG,'zTIGN.S ) The Bonds are
` special obligations of the City payable from the pledged revenues, and the
holde.r thereor sra'._ r_ez~e.r Y,.,: the riLl;'; to demand paym~ent t~zereof out cf
,'.unds raised or to be raised by taxa.tionQ
27. (APPROUAL BY ATTORNtvY GE1V'Er?AL) The Bonds and a
cora;olete record relating thereto shall be subn:itted to the Kttorney General
of Texas for his apyproval, and aiter iZe snall have approved tY:em, tiie Bonds
snall be deposited w^ th the Coniptroi.ler of Public Accourits for registrrtiono
28. After the 3ori,is her_ in authorized sha:ll have been
issued, notice of sale thereof shall be Li;reri as provided ir, the Cit;7' Ch=yrter.
?ubl.ication of. suc'1 notice shall be in"The Paris Lews", a riawspaper published
- AIWA. i . I
' and of general circulation izi the of : aris, and in "The 1exas Bond
Illeporter", a publication car-ryinr; municipal bond notices and devated
' prasnarily tc fina.ncial news.
' 29. All ordisanczs and resolutions, and parts thereof in
b
'a conflict herewit'ri are Iliereby expressly rc-pealed insofar as they corifli-ct 'riere-
witho
2E.33ED Ai.?:i this the /Dzvc- cla,ti,T of Decernber, 1951,
r ~---s
T' Cit`;~ of '_'aris, `i'exas.
. ,1 n,m- r~
r.l 71 :
City Clerk, Aty of Paris, Texas.