Res 1988-107 - Laserfiche WebLink

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BOND INFORMA nON Authority for Issuance The Bonds are issued pursuant to the general Jaws of the State of Texas, particularly Articles III 1 et seq., V.A.T.C.S., and an Ordinance approved by the City Council. Security for Bonds The Bonds are special obligations of the City payable, both as to principal and interest, solely from and secured by a first lien on and pledge of the Net Revenues of the System after the payment of maintenance and operating expenses. Maintenance and operating expenses include contractual payments which under Texas la ws and their provisions are established as operating expenses. The Bonds are not a charge upon any other income or revenues of the City and shall never constitute an indebtedness or pledge of the general credit or taxing powers of the City. The Ordinance does not create a lien or mortgage on the System and any judgment against the City may not be enforced by levy and execution against any property owned by the City, except Net Revenues. As additional security, there has been established a Reserve Fund which shall be funded in an amount at least equal to the average annual debt service requirements of the outstanding Previously Issued Bonds, and the Bonds and any Additional Bonds issued on a parity with the Bonds. The Reserve Fund will be funded over a sixty month period in accordance with the provisions of the Ordinance (see "Selected Provisions of the Bond Ordinance"). Pledged Revenues All of the Net Revenues of the System with the exception of those in excess of the amounts required to establish and maintain the Revenue, Reserve and Interest and Sinking Funds are irrevocably pledged for the payment of the Bonds and interest thereon. The payment of the Bonds and the interest thereon shall constitute a first lien upon the Net Revenues of the System. Rates The City has covenanted in the Ordinance that it wiJl at all times charge and collect for services rendered by the System rates sufficient to pay all operating, maintenance, replacement and improvement expenses, any other costs deductible in determining Net Revenues and to pay interest on and the principal of the Bonds, and to establish and maintain the funds provided for in the Ordinance. The City has further covenanted that, if the System should become legally liable for any other indebtedness, it will fix and maintain rates and collect charges for the services of the System sufficient to discharge such indebtedness. Redemption of Bonds The City reserves the right, at its option, to redeem Bonds having stated maturities on and after Janaury 1, 1999, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on January I, 1998, or any date thereafter, at the par value thereof plus accrued interest to the date fixed for redemption. If less than all of the Bonds are to be redeemed and if less than all of a maturity is to be redeemed, the Paying Agent/Registrar shall determine by lot the Bonds, or portions thereof, within such maturity to be redeemed. Not less thàn 30 days prior to a redemption date for the Bonds, the City shall cause a notice of redemption to be sent by United States mail, first class, postage prepaid, to each registered owner of a Bond to be redeemed, in whole or in part, at the address of the registered owner appearing on the registration books of the Paying Agent/Registrar at the close of business on the business day next preceding the date of mailing such notice. Any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the bondholder. Additional Bonds The City does not anticipate the issuance of additional revenue debt during the 1988-89 fiscal year. - 5 -