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HomeMy WebLinkAboutORD 77-07 - Certs. of Obligation140 ORDINANCE NO. 77-7 STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF GEORGETOWN On this the 12th day of April, 1977, the City Council of the City of Georgetown Texas, convened in regular session at the regular meeting place thereof in the City with the following members present, to wit: JOHN C. DOERFLER, Mayor HARRY L. GOLD D. W. SCOTT WILLIAM C. SHELL Councilmen KENNETH OLSON CARL J. DOERING W. L. WALDEN City Secretary and the following absent: NONE, constituting a quorum, when the following , among other proceedings, were had: Councilman Shell introduced a proposed ordinance which was read in full. Councilman Gold moved that the rule requiring ordinances to be read at more than one meeting be suspended. The motion was seconded by Councilman Scott. The motion carried by the following vote: AYES: Councilmen Shell, Gold, Scott, Doering, Olson; NO ES: None. Councilman Shell moved that the ordinance be possedfinally. The motion was seconded by Councilman Doering. The motion carried by the following vote: AYES: Councilmen Shell, Gold, Scott, Doering, Olson; NOES: None. The Mayor announced that the ordinance had been passed finally. The Ordinance is as follows: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, AUTHOR- IZING THE ISSUANCE OF CERTIFICATES OF OBLIGATION OF SAID CITY IN THE TOTAL PRINCIPAL AMOUNT OF $250,000; FOR THE PURPOSE OF CONSTRUCTING IMPROVEMENTS TO THE CITY'S WATERWORKS SYSTEM, PRESCRIBING THE FORM, TERMS AND CONDITIONS OF THE CERTIFICATES OF OBLIGATION AND THE FORM OF THE INTEREST COUPONS; LEVYING A TAX AND PLEDGING THE REVENUES OF THE CITY'S COMBINED WATER- WORKS, SEWER AND ELECTRIC LIGHT SYSTEM TO THE PAYMENT OF PRIN- CIPAL OF AND INTEREST ON SAID CERTIFICATES OF OBLIGATION AFTER DEDUCTION OF REASONABLE EXPENSES OF OPERATING AND MAINTAIN- ING SAID COMBINED SYSTEM: PROVIDING FOR PARITY CERTIFICATES OF OBLIGATION; PROVIDING FOR THE OUTSTANDING BONDS TO BE OF SUPERIOR LIEN AND ALSO FOR THE ISSUANCE OF FUTURE BONDS OF SUPERIOR LIEN; MAKING CERTAIN CONVENANTS; ENACTING PROVISIONS INCIDENT AND RELATING TO THE SUBJECT AND PURPOSE OF THIS ORDIANCE; CONFIRMING THE SALE OF THE CERTIFICATES OF OBLIGATION; AND DECLARING AN EMERGENCY. WHEREAS, each and all of the members of the City Council of the City of Georgetown, Texas, was duly and sufficiently notified, officially and personally, in advance, of the time, place and purpose of this meeting, and proper notice of this meeting has been duly and timely posted as provided by law; and WHEREAS, the City Council finds and determines the advisability and necessity of constructing improvements to the City's waterworks system and that some is an authorized need and said City has the requisite power and authority to do same and desires to issue interest-bearing certificates of obligation to be sold for cash, under the provisions of Article 2368x.1, Articles 1111-1118, VA.T.C.S., as amended, and the Charter of said City for the purpose of paying all or a portion of the contractual obligations to be 4 incurred by the City in connection with constructing improvements to the City's water- works system; and to pledge the net revenues of the City's combined waterworks, sewer and electric light system subject to the pledge of said waterworks, sewer and electric light system revenues to the outstanding City of Georgetown, Texas, Utility System Revenue Bonds: Series 1964, dated Junel, 1964; Series 1966, dated June 1, 1966; Series 1967, dated November 1, 1967; Series 1970, dated April 1, 1970; Series 1971, dated March 1, 1971; Series 1974, dated October 15, 1974, and any bonds issued in the future which pledge the revenues, or any part thereof, of the combined waterworks, sewer and electric light system; and WHEREAS, notice of intention to issue such certificates of obligation - stating the time and place the Council proposed to authorize the issuance of such certificates, the maximum amount proposed to be issued, the purpose thereof and the manner the Council proposed to provide for the payment of such certificates has been duly published in a newspaper of general circulation in the City of Georgetown, the date of the first publication being at least 14 days prior to the date stated in said notice for the passage of the ordinance author- izing the certificates; and WHEREAS, the waterworks, sewer and electric light system for the City of Georgetown is a combined system and there is no private or competing waterworks and/or sewer and/or electric light system in said City; and WHEREAS, no petition of referendum or of any kind or character has been filed with the City Secretary, any member of this City, Council, or any other official of the City, protesting the issuance of such certificates, or the passage of this ordinance or requesting an election or any other matter or thing in connection with such certificates of obligation or in connection therewith; and WHEREAS, this council deems it advisable and to the best interest of the City to proceed with the issuance of certificates of obligation in the amount of $250,000 and sell some for cash; and WHEREAS, the urgent necessity for such construction by said City requires that this Ordinance be passed as an emergency measure for the immediate preservation of the public peace, property, health, welfare and safety of said City and its inhabitants; therefore, Be it ordained by the City Council of the City of Georgetown: Section 1. That there shall be issued under and by virtue of the Constitution and laws of the State of Texas, particularly Article 2368a.1 and Articles 1111-1118, VA.T.C.S., as amended, and the Charter of said City, interest-bearing certificates of obligation (sometimes herein called Certificates) of said City to be sold for cash to be known as CITY OF -GEORGETOWN, TEXAS, CERTIFICATES OF OBLIGATION, SERIES 1977, in the principal amount of $250,000 for the purpose of paying all or a portion of the con- tractual obligations to be incurred by the City in connection with constructing improvements to the City's waterworks system, and the City of Georgetown is hereby held and firmly bound, and its faith and credit and all real and personal property in said City are hereby pledged to the payment of the principal of these certificates at maturity and the interest thereon as same becomes due by the levy of an ad valorem tax on said property and further secured by a lien on and pledge of the net revenues of the City's waterworks, sewer and electric light system, after deducting reasonable operation and maintenance expenses as provided by law subject only to a first lien sercuring the City of Georgetown, Texas, Utility System Revenue Bonds: Series 1964, dated June 1, 1964; Series 1966, dated June 1, 1966; Series 1967, Dated November 1, 1967; Series 1970, dated April 1, 1970; Series 1971, dated March 1, 1971; Series 1974, dated October 15, 1974, and any bonds issued in the future which pledge the revenues of any part thereof of the combined waterworks, sewer and electric light system. Section 2. That said Certificates shall be sold for cash and the proceeds thereof shall be used only for the purpose or purposes for which the same are authorized. Section 3. That said Certificates shall be numbered from 1 to 250, inclusive, and shall be in the denomination of One Thousand Dollars ($1,000) each, aggregating Two Hundred FiftyThDusand Dollar ($250,000). Section 4. That the Certificates shall be dated April 15, 1977, and shall bear interest from said date until paid at the rate of five per cent (5%) per annum, with interest payable on April 15, 1978 and semiannually thereafter on October 15 and April 15 in each year. Section 5. That the Certificates shall mature on April 15 in each of the years as follows: 142 NUMBERS AMOUNTS (Inclusive MATURITY DATES Per Year 1-20 1978 $20,000 21-41 1979 21,000 42-63 1980 22,000 64-86 1981 23,000 87-110 1982 24,000 111-135 1983 25,000 136-162 1984 27,000 163-190 1985 28,000 191-219 1986 29,000 220-250 1987 31,000 The City reserves the right to redeem any or all of said Certificates on any date at par and accrued interest to redemption date. If same are called for redemption, notice thereof in writing shall be given by the City Secretary to the Citizens State Bank, Georgetown, Texas, at least 30 days prior to the redemption date. Any of said Certificates not presented for payment on the redemption date shall cease to bear interest from and after said date. Section 6. That both principal of and interest on the Certificates shall be pay- able inawfu money of the United States, without exchange or collection charges to the owner or holder thereof, at the Citizens State Bank, Georgetown, Texas, upon presentation and surrender of Certificates or proper coupons. Section 7. That said Certificates and the interest coupons appurtenant thereto shalla e� xecuted with the imprinted facsimile signatures of the Mayor and City Secretary of the City of Georgetown, and the official seal of said City shall be impressed, or a facsimile thereof shall be printed, on each of said Certificates. Execution in such manner shall have the some effect as if such Certificates and coupons had been signed by said Mayor and City Secretary in person by their manual signatures. Inas- much as such Certificates are required to be registered by the Comptroller of Public Accounts of 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 herein- after provided, all in accordance with the provisions of Article 717j-1, Vernon's Civil Statutes of Texas, 1925, as amended. Section 8.' The form of said Certificates shall be substantially as follows: No. UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF GEORGETOWN, TEXAS CERTIFICATE OF OBLIGATION, SERIES 1977 KNOW ALL MEN BY THESE PRESENTS: That the City of Georgetown, Texas, a municipal corporation duly incorporated under the laws of the State of Texas, FOR VALUE RECEIVED, acknowledges itself indebted to and hereby promises to pay to the bearer hereof on April 15, , the sum of ONE THOUSAND DOLLARS ($1,000) in lawful money of the United State with interest thereon from date hereof at the rate of five per cent (5%) per annum, interest payable April 15, 1978 and semi- annually thereafter on October 15 and April 15 in each year, on presentation and surrender of the annexed interest coupons as they severally become due. Both the principal of and interest on this Certificate of Obligation are payable at the Citizens State Bank, Georgetown, Texas, without exchange or collection charges to the owner or holder hereof. This Certificate is one of a series of 250 Certificates, numbered consecutively from 1 to 250, inclusive, of the denomination of $1,000 each, aggregating $250,000 issued by the City of Georgetown for the purpose of paying all or a portion of the contractual obligations to be incurred by the City in connection with constructing irrprove- ments to the City's waterworks system in accordance with the Constitution and laws of the State of Texas, particularly Article 2368a.1 and Articles 1111-1118, V.A.T.C.S., as amended, the Charter of said City, and pursuant to an Ordinance duly passed by the ;V City Council of said City, which Ordinance is of record in the Minutes of said City. The City reserves the right to redeem any or all of said Certificates on any date at par and accrued interest to redemption date. If same are called for redemption, notice thereof in writing shall be given by the City Secretary to the Citizens State Bank, George- town, Texas, at least 30 days prior to the redemption date. Any of said Certificates not presented for payment on the redemption date shall cease to bear interest from and after said date. The date of this Certificate of Obligation, in conformity with the Ordinance above mentioned, is April 15, 1977. The City of Georgetown is hereby held and firmly bound, and its faith and credit and all real and personal property in said City are hereby pledged for the prompt payment of the principal of this Certificate and the interest thereon at maturity by the levy of an ad valorem tax on said property and further by a lien on and pledge of the net revenues of the City's combined waterworks, sewer and electric light system, including all additions, extensions and improvements thereto which may hereafter be made (herein called "System") after deduction of reasonable expenses of operation and maintenance, subject only to the first lien securing the City of Georgetown, .Texas, Utility System Revenue Bonds: Series 1964, dated June 1, 1964; Series 1966, dated June 1, 1966; Series 1967, dated November 1, 1967; Series 1970, dated April 1, 1970; Series 1971, dated March 1, 1971; Series 1974, dated October 15, 1974; and any bonds issued in the future which pledge the revenues, or any part thereof, of the combined waterworks, sewer and electric light system. Each holder of this Certificate of Obligation, payable to bearer, or of the interest coupons hereto attached, is conclusively presumed to forego and renounce his equities in favor of subsequent holders for value without notice and to agree that, being payable to bearer, this Certificate of Obligation, and each of the interest coupons attached, may be negotiated by delivery howsoever possession may have been acquired; and that any subsequent holder who may receive this Certificate of Obligation, or any of the coupons attached, for value without notice, has thereby acquired absolute title free from all equities and claims of ownership of any prior holder. The City of Georgetown, its officers and the paying agent shall not be affected by any notice to the contrary. AND IT 15 HEREBY CERTIFIED AND RECITED that the issuance of this Certificate of Obligation, and the series of which it is a part, is duly authorized by law; that all acts, conditions and things required to exist and to be done precedent to and in the issuance of this Certificate of Obligation to render the some lawful and valid have been properly done, have happened and have been performed in regular and due time, form and manner, as required by the Constitution and laws of the State of Texas, the Charter of the City of Georgetown, and the Ordinance hereinabove mentioned; and that this series of Certificates of Obligation does not exceed any constitutional or statutory limitation; and that provisions have been made for the payment of the principal of and the interest on this Certificate of Obligation, and the series of which it is a part, by the levy of an ad valorem tax and irrevocably pledging of the net revenues of the City's combined water works, sewer and electric light system as herein provided. IN WITNESS WHEREOF, this Certificate of Obligation and the interest coupons attached hereto have been signed by the imprinted facsimile signature of the Mayor of said City and countersigned by the imprinted facsimile signature of the City Secretary of said City, and the official seal of said City has been duly impressed or printed on this Certificate of Obligation. NO. COUNTERSIGNED: Mayor, City of Georgetown, Texas Secretary, City of Georgetown, Texas Section 9. That the form of said interest coupons shall be substantially as follows: ON THE 15TH DAY OF , , $ The City of Georgetown, Texas, promises to pay to bearer (unless the certificate to which this coupon is attached is then callable for redemption and has been so called and provision for the redemption thereof duly made) in lawful money of the United States at the Citizens State Bank, Georgetown, Texas, without exchange or collection charges to the bearer hereof, the sum of Dollars ($ ) in lawful money of the United States, said sum being months' interest due that day on CITY OF GEORGETOWN, TEXAS, CERTIFICATE OF OBLIGATION, SERIES 1977, dated April 15, 1977, No. City Secretary Mayor 144 Section 10. That substantially the following shall be printed on the back of each Certificate: OFFICE OF COMPTROLLER STATE OF TEXAS REGISTER NO. I HEREBY CERTIFY that this Certificate of Obligation has been examined, certi- fied as to validity, and approved by the Attorney General of the State of Texas; and that this Certificate of Obligation has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS BY HAND and seal of office at Austin, Texas this Comptroller of Public Accounts of the State of Texas Section 11. That there is hereby levied for the current year and for each succeeding year thereafter while said Certificates, or any of them, or any interest thereon, are outstanding, a tax on each $100 valuation of taxable property in said City sufficient to pay the interest on said Certificats and to provide the necessary sinking fund to pay the principal, full allowance being made for delinquencies and cost of collection or to provide at least two per cent (2%) of the principal as a sinking fund, whichever amount is greater; and said tax shall be annually assessed and collected and applied to the payment of the interest on and principal of said Certificates. There is hereby created an interest and sinking fund for the Certificatesauthorized by this Ordinance. Any accrued interes t received from the sale of these Certificats shall be placed in said interest and sinking fund. Section 12. Definitions. The following words, terms and expressions used in this ordinance shall have the fall wing meanings unless the context indicats or implies a diff- Brent meaning: . (a) "City" means the City of Georgetown. (b) "City Council" or Council means the governing body of the City. (c) "Certificates of Obligation" or "Certificates" shall mean the $250,000 of Certificats of Obligation authorized by this Ordinance. (d) "Outstanding Bonds" shall mean the City of Georgetown, Texas, Utility System Revenue Bonds: Series 1964, dated June 1, 1964; Series 1966, dated June 1, 1966; Series 1967, dated November 1, 1967, Series 1970, dated April 1,. 1970; Series 1971, dated March 1, 1971; Series 1974, dated October 15, 1974. (e) "System" shall mean the entire combined waterworks, sewer and electric light system of the City, together with all extensions, additions, replacements and improve- ments, present and future, thereto which may be made while said Certificats of Oblig- ation as herein provided remain outstanding against the System. . (f) "Net Revenues" and "Pledged Revenues" shall mean the revenues derived from the operation of the System as such revenues are defined and pledged in this Ordinance. Section 13. Pledge of Revenues. In addition to the levy of taxes as herein stated, the Certificates of O ligation s a payable from and secured by an irrevocable lien on and pledge of the income and revenues derived and to be derivedfrom the operation of the System, after deduction therefrom of the amount necessary to pay all operating, maintenance, depreciation, replacement and betterment charges of the System, as is required by law and same shall be junior and subordinate in all respects to the lien on and pledge of the income and revenues to the outstanding bonds and any future bonds as herein provided. Section 14. Maintenance of Rates. The City hereby covenants that it will, at all times while the Certificates of Obligation, or any interest thereon is outstanding and unpaid, charge and collect for services rendered by the System rates sufficient to pay all maintenance, depreciation, replacement and betterment and interest charges and to provide an Interest and Sinking Fund sufficient to pay the interest and principal of said Certificates as such interest and principal mature and any outstanding indebtedness against the System, as is required by applicable statutes of Texas. For the benefit of the original holder, and for the benefit of any and all subsequent holders of said Certificates, and in addition to all other provisions and covenants in the laws of the State of Texas and in this Ordinance, it is expressly covenanted that the City shall fix and maintain rates 145 and collect charges for the facilities and services afforded by the System to the City and to all other customers which will provide revenues sufficient at all times: (a) To pay all operating, maintenance, depreciation, replacement and betterment charges of the System, as is required by this Ordinance and by law; (b) To establish and maintain the Certificate of Obligation Fund for the Certificates; (c) To pay in addition all outstanding indebtedness against the System other than the Certificates or outstanding bonds, or future bonds as herein provided, as and when the same become due. Section 15. System Fund. All revenues of every nature received through the operation of the System shall be deposited from day to day as collected into a separate account (heretofore created as the Utility System Revenue Fund and herein called the "System Fund") which shall be kept separate and apart from all other funds of the City, and the reasonable and proper expenses of operating and maintaining the System, including salaries, labor and materials, shall be paid therefrom upon approval of the City Council. Section 16. Certificale of Obligation Fund. From the funds in the System Fund, after all payments from the System Fund have been made as provided for in the Ordinances authorizing the outstanding bonds, and any future bonds as herein provided, the City shall pay into a separate account (herein called the "Certificate of Obligation Fund") during each year in which any of the Certificiates are outstanding an amount equal to 100 per centum of the amount required to meet the interest and principal payments falling due on or before the next maturity date of the Certificates. The Citizens State Bank, Georgetown, Texas, is hereby designated custodian of the Certificate of Obligation Fund, and the deposits herein described shall be trasmitted to said Fund in said Bank. In addition to such payment, the City shall pay into the Certificate .~ of Obligation Fund from the System Fund in each year twenty per cent (20%) of the above required amount until such time as there is in the Certificate of Obligation Fund an Amount .�.7 sufficient to meet the interest and principal payment falling due on or before the next maturity date of the Certificates and the interest and principal payments on the Certificates for one year thereafter. The payments required to be made into the Certificate of Obligation Fund in each year shall be paid in substantially equal monthly payments. The payment required to be made into the Certificate of Obligation Fund in each month shall be made on or before the Ist day of each month, commencing with the first day of the month next succeeding the month in which the Certificates are sold and delivered. It is the intent of this provision that the sums paid into the Certificate of Obliation Fund shall be in excess of the immediate requirements for payment of interest on and principal of the Certificates until there has been accumulated in the Certificate of Obligation Fund, as a reserve for contingencies an amount sufficient to service the Certificates for one year. Said reserve shall be used solely for the payment of principal and interest on the Certificates falling due at any time as to which ther would otherwise be a default; and whenever any money is paid out of the reserve for the paymentof principal and interest, payments into the Certificate of Obligation Fund shall be resumed and continued until such time as the money so used from the reserve has been restored. The money in said Certificate of Obligation Fund constituting the reserve for contingencies may, upon order of the City Council, be invested in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States Government to the extent permitted by law, which shall mature, or which shall be subject to redemption by the holder thereof at the option of such holder, not later then ten (10) years after the dates of investment. Any obligations in which money is so invested shall be kept in escrow in the bank in which the Certificate of Obligation Fund is kept. If such funds are so invested and deposited in escrow, the City shall have the right to have sold through the escrow agent on the open market a sufficient amount of said securities in order to meet its obligations of principal and interest on the Certifiecates in the event it does not have suffic- ient funds, univested, on hand for such purpose. Under such circumstances, the Mayor is hereby authorized, ordered anddi rected to give fifteen days' notice to such excrow agent of the necess- ity to sell said securities on the open market. After such sale, the moneys resulting therefrom shall belong to the Certificate of Obligation Fund and shall be available to pay such obligations of principal and interest. Section 17. Deficiencies in Funds. If in anyrronth the City shall fail to pay into the Certificate of Z5bligation Fund the full amounts above stipulated, amounts equivalent to such deficiencies shall be set apart and paid into said Fund from the first available and unallocated revenues of the followingmonth or months, and such payments shall be in addition to the amounts hereinabove provided to be otherwise paid into said Fund during such month or months. To the extent necessary, the City shall increase the rates and charges for services of the System to make up such deficiencies. 1-46 Section 18. Excess Revenues. Any revenues in excess of those required to estab- lished an maintain the Certi icate of Obligation Fund as above required may be used for the redemption of Certificates, or outstanding bonds, or future bonds as herein provided, or for any other purpose now or hereafter permitted by law. Section 19. Security for Funds. All funds created by this Ordinance shall be secured in the manner and to the fullest extent permitted by law for the security of public funds, and such funds shall be used solely for the purposes permitted by this Ordinance. Section 20. Additional Certificates of Obligation. In the addition to the right to issue certificates of obligation of inferior lien, as cut ized by laws of this State, the City of Georgetown reserves the right to issue further and additional certificates of obligation from time to time payable from the net income and revenues of the City's combined waterworks, sewer and electric light system (Utility System), and, when issued in compliance with law, such additional certificates of obligation shall be equally secured by a lien on and pledge of the Pledged Revenues; and the additional certificates of obligation when issued shall be payable from the Certificate of Obligation Fund and shall be in all respects of equal dignity and on a parity with Certificates of Obligations herein authorized. Section 21. Additional Bonds. In addition to the right to issue bonds of inferior lien to the outstanding bonds and any future bonds as herein provided, as authorized by the laws of this State, the City of Georgetown further and specifically reserves the right to issue, in the future, further and additional bonds from time to time payable from the net income and reserves of the City's combined waterworks, sewer and electric light system (Utility System); and when issued in complicance with law and the terms and conditionsof and in the ordinances authorizing the outstanding bonds, and any future bonds as herein provided, such additional bonds shall be in all respects and all things superior to the lien on and pledge of the Pledged Revenues for the Certificats of Obligation herein authorized; and the additional bonds, when issued, shall be payable from the Utility System Revenue Bond Interest and Sinking Fund and shall be in all respects of equal dignity and on a parity with the Outstanding Bonds and any future bonds as herein provided. It is the specific intent of the City of Georgetown that the Certificats of Obligation authorized herein shall be junior and subordinate in all respects and things to the outstanding bonds and any future bonds as herein provided and to the payment of the principal and interest thereon. Section 22. Maintenance and operation; Insurance. The City shall maintain the System in good condition and operate the same in an efficient manner and at a reasonable cost. So long as any of the Certificates are outstanding, the City agrees to maintain Insurance for the benefit of the holder or holders of the Certificates, on the System in the amounts which usually are carried by private compainies operating similar properties. Nothing in this ordinance shall be construed as requiring the City to expend any funds which are derived from sources other than the operation of the System, but nothing herein shall be construed as preventing the City from doing so. . Section 23. Accounts. The City shall keep proper books of record and accounts (separate from all other records and accounts of the City) in which complete and correct entries shall be made of all transactions relating to the System, and shall have said books audited once each fiscal year by an independent certified public accountant. Section 24. Special Covenants. The City further covenants as follows: (a) That i F haste lawTuT power to pledge the revenues supporting this issue of Cert- ificate of Obligation and has lawfully exercised said power under the Constitution and laws of the State of Texas, and the Charter of the City, and that the Certificates issued hereunder, shall be ratably secured by said pledge of taxes and income in such manner that one certificate shall have no preference over any other certificate; (b) That other than for the payment of the Certificates and Outstanding Bonds, the rents, revenues and income of the System have not been pledged in any manner to the payment of any debt or obligation of the City or of said System; (c) That no free service of the System shall be allowed and should the City or any of its agencies or instrumentalities make use of the services and facilities of the System, payment of the reasonable value thereof shall be made by the City out of funds derived from sources other than the revenues and income of the system; (d) To the extent that it legally may, the City further covenants and agrees that, so long as any of the Certificates of Obligation, or any interest thereon are outstanding,no franchise shall be granted for the installation or operation of any competing system; that the City will prohibit the operation of any such system other than that owned by the City; and the operation of any such system by any one other than this City is hereby prohibited. I-" Section 25. Inspection. Any holder or holders of the Certificates shall have the right at allreasonaa6l times to inspect the System and all records, accounts and data of the City relating thereto. Section 26. Approval and Registration of Certificates of Obligation. The Mayor of said City shall ave charge of the Certificates until same are submitted to the Attorney General. The Certificates and a complete record of proceedings shall be submitted to the Attorney General for his approval. After the Certificates have been approved by the Attorney General, they shall be deposited with the State Comptroller of Public Accounts for registration. After such Certificates have been duly registered by the State Comptroller, the State Comptroller is hereby authorized anddi rected to deliver such Certificates to the Mayor of the City of Georgetown, or on his order. Section 27. Confirmation of Sale. That the negotiated sale of the Certificates herein authorized tote Citizens State Bank, Georgetown, Texas, for cash at a price of par and accrued interest to date of delivery, is hereby confirmed. Section 28. Emergency, Because of the emergency recited in the preamble hereof, this Ordinance sh�all take effect immediately upon its passage, and it is so ordained. PASSED AND APPROVED at a meeting open to the public, this the 12th day of April, 1977, after public notice of the time, place and purpose of said meeting was given and posted as required by law, and particularly Article 6252-17, VA.T.C.S., as amended. .-r 1j J n C. Doerfler, Mayor ATTEST: City Secretary APPROVED: City Attorney