HomeMy WebLinkAboutORD 1978-055 .,
ORDINANCE NO. 73=55
AN ORDINANCE BY THE CITY COUNCIL OF THE CIN OF
�., GRAPEVINE, TEXAS, AUTHORIZING THE ISSUANCE OF
$450,000 "CITY OF GRAPEVINE, TEXAS, GENERAL
OBLIGATION CERTIFICATES OF OBLIGATION, SERIES
1978, " DATED OCTOBER 1, 1978, UNDER AND PURSUANT
TO THE AUTHORITY CONTAINED IN THE CERTIFICATE OF
OBLIGATION ACT OF 1971, AS AMENDED; MAKING
PROVISION FOR THE PAYMENT AND SECURITY OF SUCH
OSLIGATIONS; PROVIDING FOR THE SALE AND DELIVERY
THEREOF; AND ENACTING PROVISIONS INCIDENT AND
RELATING TO THE PURPOSE AND SUBJECT OF THIS
ORDINANCE
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 for
the purpose of obtaining funds to pay the contractual obligation to be incurred
for the construction of a public work, to-wit: constructing, improving and
finishing a City of Grapevine Golf Course and paying all or a portion of the
contractua) obligations for professional services of engineering, attorneys and
financial advisors in connection with said public improvement and Certificates
of Obligation; and
� WHEREAS, the City is authorized to provide that such obfigations will be
payable from and secured by the (evy of a direct and continuing annua) ad va(orem
tax against al) taxable property within the City and from the revenues of the City's
combined Wafierworks and Sewer System remaining after payment of all operation
and mainfienonce expenses thereof, and all debt service, reserve and other require-
ments in connection with all of the City's revenue bonds (now or hereafter out-
standing) which are payoble from all or any part of the net revenues of the City's
combined Waterworks and Sewer System, and to sell the same for cash as herein
provided; and
WHEREAS, fihe City Council hos found and determined that it is necessary and
in fi{-ie best interest of the City and its citizens that it issue the Genera) Obligation
Certificates of Obligation authorized by this ordinance; and
WHEREAS, pursuant to an ordinance heretofore passed by this governing body,
Notice of Intention to issue City of Grapevine, Texas, General Obligation Certificates
of Obligation, was published in a newspaper of generai circulation in said City on
the 20th day of August, 1978, and the 27th day of August, 1978, the date of the
first publication of said Notice being at least fourteen (14) days prior to the date
� sefi for the passage of this ordinance; and
� WHEREAS, no petition of any kind has been filed with the City Secretary, any
member of the Council or any other official of the City, protesting the issuance of
such Certi f i cates; and
j�� �'VHEREAS, th'rs Council is now authorized and empowered fio proceed with
the issuance of said Cerfiificates of Obligation and to sell the same for cash; now,
therefore,
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE,
TEXAS:
Section 1. That for the purpose of obtaining funds to pay the contractua)
obligation to be incurred for the construction of a public work, to-wit: constructing,
improving and finishing a City of Grapevine Golf Course and paying all or a portion
of the contractual obligations for professiona) services or engineering, attorneys and
financial advisors in connection with said public improvement and Certificates of
Obligafion, there shall be and there is hereby ordered to be issued, under and by
virtue of the Constitution and laws of the State of Texas, particularly Article 2358a.1,
V. A, T. C. S., a series of Certificates of Obligation of the City of Grapevine, Texas,
to be known as "CIN OF GRAPEVINE, TEXAS, GENERAL OBLIGATION CERTIFI-
CATES OF OBLIGATIQN, SERIES 1978, " in the principal amount of Four Hundred and
Fifty Thousand Dollars ($450,000).
Section 2, That said Certificates shall be dated October 1, 1978, shall be
numbered consecutively from One (1) through Ninety (90), shall each be in the
� denomination of Five Thousand Dollars ($5,000), and shall become due and payable
� serially on October 1 in each of the years in accordance with the following schedule:
�,
CERTIFICATE NUMBERS YEAR
(All Inclusive) (October 1) AMOUNT
1 - 10 1981 $50,000
11 - 20 1982 50,000
21 - 30 1983 50,000
31 - 40 1984 50,000
41 - 50 1985 50,000
51 - 60 1986 50,000
61 - 70 1987 50,000
71 - 80 1988 50,000
81 - 90 1989 50,000
PROVIDED, HOWEVER, that the Cifiy reserves the right to redeem the Certificates
of this series, in whole or in part, at any time, for a price equal to the par amounfi
of Cerfiificates redeemed plus interest accrued to the date of redemption; PROVIDED,
further, that at (east five (5) days prior to any date upon which any of said Certificates
are to be redeemed, notice of redemption signed by the City Secretary (specifying
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the serial numbers and amount of Certificates to be redeemed) shall have been �led
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� with the Fort Worth National Bank, Fort Worth, Texas (the paying agent named
in each of said Certificates), and if by the date so fixed for redemp#ion the City
� � shall have made available to the paying agenfi bank funds in amounts sufficient
to pay the Certificates and accrved interest thereon to the date of redemption,
pursuant to such notice, the same shall cease to bear interest from and after the
date so fixed for redemption and shall not be deemed to be outstanding for any
purpose except for fihe purpose of receiving such funds.
Section 3. That each of said Certificates shall bear interest, while
outsfianding, at the rate of Six and One-half per centum (6-1/2°l0) per annum
for the period beginning October 1, 1978 to April 1, 1979, at the rate of
Seven per centum (7°l0) per annum for the period beginning April 1, 1979 to
October 1, 1479, and at the rate of Eight per centum (8%) per annum for fihe
period beginning October 1, 1979 to the respective maturity dates of said
Certificates. Such interest shall be evidenced by Rroper interest coupons
atfiached to said Certificates and payable on October 1, 1979, and semi-annually
thereafter on April 1 and October 1 until maturity or redemption, as aforesaid.
Both principal of and interest on this issue of Certificofies shall be payable
in (awful money of the United States of America, without exchange or collection
charges to the owner or holder, at the Forfi Worth Nationa) Bank, Fort Worth,
� Texas, upon presentation and surrender of Certificates or proper coupons.
�"`°' Section 4. That the seal of said City may be impressed on each of the said
Certificates or, in the altnerative, a facsimile of such seal may be printed on
said Certificates. The Certificates and interest coupons appurtenant thereto may
be executed by the imprinted or 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 fiheir manual signatures. Inasmuch as such Certificates are required ta
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 Compfiroller)
shall be required to be manually subscribed to such Certificates in connection with
his registration cerfificate to appear thereon, as hereinafter provided� all in
accordance with the provisions of Article 717j-1, V.A.T.C,S.
Section 5, The Certificates shall be in substantialfy the fol(owing form:
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� UNtTED STATES OF AMERICA
STATE OF TEXAS
�,..�
COUNTY OF TARRANT
CITY OF GRAPEVINE
GENERAL OBLIGATION CERTIFICATE OF O�LIGATION
SERIES 1978
The City of Grapevine, a municipal corporation of the State of Texas, certifies
and acknowledges itself to be indebted to and For Value Received, hereby promises
to pay to bearer, on the FIRST DAY OF OCTOBER, , the sum of
FIVE THOUSAND DOLLARS
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($5,000), in lawfu) money of the United States of America, with_ interest fihereon
afi the rate of Six and One-half per centum (6-1/2%) per annum for the period
beginning October 1, 1978 to April 1, 1979, afi the rate of Seven per centum (7°l0)
per annum for the period beginning Apri I 1, 1979 to Ocfiober 1, 1979, and at the
rate of Eight per centum (8%) per annum for the period beginning October 1, 1979
to the maturity date hereof, poyuble on Ocfiober 1, 1979, and semi-onnually there-
after on each April 1 and October �; and interest falling due on or priar to maturifiy
hereof is payable only upon presenfiation and surrender of the interest coupons attached
�" hereto as they severally become due.
�""` The principal of this Certificate and the interest coupons attached hereto shaf)
be payable fio bearer in lawful money of the United States of America, without
exchange or collection charges to the bearer, upon presentation and surrender of
this Certificafie or proper interest coupon, at the Fort Worth National Bank, Fort
Warfih, Texps, which place shall be the paying agent for this series of Certificates.
THIS CERTIFICATE is one of a series of Certificates, numbered consecutively
from One (1) through Ninety (90), each in denomination of Five ThousQnd Dollars
($5,000), aggregating the principal sum of Four Hundred and Fifty Thousand Dollars
($450,000), issued for the purpose of obtaining funds to pay the contractua( obligation
fio be incurred for the construction of a public work, to-wit: constructing, improving
and finishing a City of Grapevine Golf Course and ppying all or a portion of the
contractual obligations for professional services of engineering, attorneys and
financial advisors in connection with said public improvement and Certificates of
Obligotion under and by virtue of the Constitution and laws of the State of Texas,
including Article 2368a.1, V.A.T.C.S., and in accordance with an ordinance
duly passed and adopfied by the City Council of the City of Grapevine, Texas, and of
record in the minufies of the said City Council.
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� AS SPECIFIED in the Ordinance hereinabove mentioned, the City reserves
the right to redeem the Certificates of this series, in whole or any part, at any
time, for a price equal to the par amounfi of Certificates redeemed plus interest
�""` accrued to the date of redemption; PROVIDED, HOWEVER, that at least five (5)
days prior to any date upon which any of said Certificofies are to be redeemed,
notice of redemption signed by the City Secretary (specifying the serial numbers
and amounts of Cerfiificates to be redeemed) shall have been filed with the afore-
said paying agent, and if by the date so fixed for redemption the City sh4II hpve
made available to fihe paying agent bank funds in the amounts sufficienfi to pay the
Certificates cal(ed for redemption and accrued interest thereon to the dofe of
redemption, pursuant to such notice, the same shall cease to bear infierest from
and after the dote so fixed for redemption.
IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED thot 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 fihe series of which it is a part, hove been properly done, hove
happened and have been performed in regular and due fiime, form and manner as
required by law; that proper provisions have been made for the levy and collection
annually of taxes upon all taxable property in said City sufficient within the limits
prescribed by law to pay the interest on this Certificote and the series of which it is
a part as due and to provide for the payment of the principal as the same matures;
and that, in addition fio said tax, further provision has been made for the payment
� � of the principal hereof and the interest hereon, end of fihe series of which this
Certificate is a part, by pledging to such purposes the revenues of the City's combined
Waterworks and Sewer System remaining after payment of al) aperations and maintenance
expenses thereof, and all debt service, reserve and other requirements in connection
with all of the City's revenue bonds (now or hereafter outstanding) which are payable
from all or any part of the nefi revenues of the Cify's combined Waterworks ancf Sewer
System, ail as more fully set forth in said Ordinance, said pledge of such revenues,
however, being expressly subject and subordinate to any pledge heretofore made or
hereafter to be made securing the payment of any bonds or other obligations payable
from such revenues, all as provided in said Ordinance; that when so collected, such
taxes and revenues shall be appropriated to such purposes; and that the total indebtedness
of the City, including this Certificate and the series of which ii- is one, does not
exceed any constitutional,stafiutory, or other limifidtion.
IN TESTIMONY WHEREOF, the City Council of the City, in accordance with
the provisions of Article 717j-1, V.A.T.C.S., has caused the seal of said City to be
impressed or a facsimile thereof fio be printed hereon, ond this Certificate and its
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appurtenant coupons fio be executed with the facsimile signatures of the Mayor
crnd City Secretary of said City, the date of this Certificate, in conformity with
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the Ordinance hereinabove mentioned, being the FIRST DAY OF OCTOBER, 1978.
Mayor, City of Grapevine, Texas
COUNTERSIGNED:
City Secretory, City of Grapevine, Texas
Section 6. The form of said interesfi coupons shpll be substantially as
fol lows:
NO. � $
ON THE FIRST DAY OF
The City of Grapevine, in the County of Tarrant, State of Texas, un(ess due provision
� has been made for the redemption prior to maturity of the Certificate to which this
interest coupon appertains, promises fio pay to bearer the amount shown on this interest
coupon, in lawful money of the United States of America, without exchange or
collection charges to the bearer, at the Fort Worth Nafiional Bank, Fort Worth, Texas,
being interest due thafi day on the Certificate, bearing the number hereinafter
designated, of that series of City of Grapevine, Texas, General Obligation
Certificpfies of Obligation, Series 1978, dated October 1, 1978. Certificate No.
City Secretary Mayor
Secfiion 7. That the following certificafie shall be printed on the back of said
Certificates of Obligation:
OFFICE OF COMPTROLLER X
X REGISTER NO.
STATE OF TEXAS X
� I HEREBY CERTIFY fihat there is on file and of record in my office a certificate
of fihe Attorney General of the State of Texas to the effect fihat this Certificate of
�` Obligation has been examined by him as required by low, and that it is a valid and
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binding obligation upon the City of Grapevine, Texas, and said Certificate has
this day been registered by me. -
,� ._,
WITNESS MY HAND AND THE SEAL OF MY OFFICE at Austin, Texas, ,
mptro er of Pu I i c ccounts for t e
State of Texas
, [SEAL]
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 revenues therefor, the following definitions are provided:
(a) "Certi fi cotes" means the Certi fi cates of Obl igati on authori zed
by this ordinance and pdditional certificates of obligation, if any, issued on a parity
therewith,
(b) "Certi f i cate Interest and Si nk i ng Fund" or "Certi fi cate Fund"
� - means the special fund created under the provisions o.f Section 9 of this
ordinance, . . '
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(c) "Prior Lien Bonds" means any and all bonds or other obligafiions
of the City presently outstanding or t�iafi may be hereafter issued, payable from and
secured by a first lien on and pledge of fihe net revenues of the City's Waterworks and
Sewer System as authorized by the ordinances authorizing the City's presently out-
standing Prior Lien Bonds and Section 14(a) of this ordinance.
(d) "Surplus Revenues" means the revenues of the City's combined
Wafierworks and Sewer System remaining after payr►�nt of all operational and
maintenance expenses thereof, and all debt service, reserve and other requirements
in connection with the Cifiy's Prior Lien Bonds.
(e) "Surplus Revenue Obligations" means the Certificates, the Cii-y's
General Obligafiion Certificates of Obligation, Series-197&-A,dateci� October, 1, 1978
in the aggregafie principaf amount of $200,OOOeand any ofiher obligations the City
may issue payable from Surplus Revenues as authorized by Section 14(b) of this
ordinance. '
Section 9. Thaf for the purpose of paying the interest on and to provide a
sinking fund for the payment of principal of and interest on the Certificotes, there
" is hereby created and established a special fund to be designated "SPECIAL C1TY OF
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GRAPEVINE, TEXAS, GENERAL 03LIGATION CERTIFICATES OF OBLIGATION
FUND," (the "Certificpte Interest and Sinking Fund") and ai) monies deposited
+�-� therein shall be used for no other purpose. This fund shall be deposited with fihe
Fort Worth National Bank, Fort Worth, Texas, and said custodian of the Fund is
hereby aufihorized and directed to make withdrawals from sdid Fund in such amounts
required to poy the principa) of and infierest on the Certificates as the same become
due and mature.
Section 10. That to provide for the,paymenfi of the debfi service requirements
on the Certificates, being (i) the interest on the Certificates, and (ii) a sinking
fund for their payment afi maturity or a sinking fund of 2°lo per annum (whichever
amount shall be the greater), there shal( be and fihere is hereby levied for the current
year and each succeeding year thereafter while the Certificates or any interest
thereon shall remain outstonding and unpaid, a sufficient tax on each one hundred
dollars' valuation of taxable properiy in said Cifiy, adequate to pay such debfi service
requiremenfis, full alllowance 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 texes so levied and collected shall be paid into the Certificate Interesfi
and Sinking Fund. This goveming body 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 availabte taxing
�, ,.{ aufihority of the City for such purpose is adequate to permifi 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 Cifiy's annua) budget shall reflecfi (i) the amount of debt service
reqvirements to became due on the Certificates in the next succeeding fiscal year
of the City, (ii) the amount on deposit in fihe Certificote Fund, as of the date such
budget is prepared (after giving effect to any payments required fio be made during
the remainder of the then current fiscal year), and (iii) fihe amount of Surplus
Revenues estimafied and budgeted to be available for the payment of such debfi
service requirements on the Certificates during fihe next succeeding fiscal year of
" the City.
(b) The amount required fio be provided in the succeeding fiscal year of
the City from ad valorem taxes shall be the amount, if any, fihe debt service require-
ments fio be paid on the Certificates in the nexfi succeeding fiscol year of the City
exceed the sum of (i) the amount shown to be on deposit in the Certificate Fund at
' the time the annual budget is prepared, and (ii) the Surplus Revenues shown to be
budgefied and available for payment of said debt service requirements after taking
� � into consideration the debt service requirements and other fund requirements of the
Prior Lien Bonds and other Surplus Revenue 'Obligatians.
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(c) Following the final approval of the annual budget of the City, the
goveming body of this City shall, by ordinance, levy an ad valorem fiax at a rate
"�"'" sufficient to produce taxes in the amount determined in ara ra h
p g p (b), above, to
be utilized for purposes of paying the principal of and interest on fihe Certificates
'in the next succeeding fiscat year of the City.
� Section 11, The City hereby covenants and agrees that all the Surplus
Revenues, with the exception of those in excess of the amounts required to be
deposited fio the Certificpte Fund as hereafter provided, are hereby irrevocably
pledged fio the payment of the principal of and interest on the Cerfiificafies as the
some become due. After satisfying all payments required under the fierms and
provisions of the ordinances authorizing the Prior Lien Bonds, all Surplus Revenues
remaining shall be ond are hereby pledged and the same shall be appropriafied for
the following purposes and in the order of precedence shown, as follows:
FIRST: To the "SPECIAL CITY OF GRAPEVINE, TEXAS,
GENERAL OBLIGATION CERTIFICATES OF
08LIGATION FUND," to the exfient as provided
in Section 12; and
� SECOND: To any other proper city purposes now or hereafter
perm i tted by l aw.
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Section 12. That the City shal) cause the pledged Surplus Revenues to be
deposited in fihe Certificafie Fund as and when the same is available until such time
as such Fund contains an amount equal to pay the principal of and interest on the
Certificates to final maturity.
Section 13. All Funds for which this ordinance makes provision (except
any portion thereof as may be at any time properly invested) sha11 be secured in
the manner and fio the fullest extent required by the laws of Texas far the security
of public funds, and such Funds shall be used for the purposes permitted by this
ordinance.
Section 14. (a) That the City expressly reserves the right to issue additional
Prior Lien Bonds in accordance with the provisions of fihe Ordinances authorizing
the City's presently outsfianding Prior Lien Bonds.
(b) That the City expressly reserves the right to issue other CertificQtes
of Obligation or any other obligations in any lawful amount, of any nature or kind
and for any lawful purpose which are payable from taxation and Surplus Revenues,
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and any such obligations may be on a parity with the Certificates.
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(c) That notwithstanding any other provisions of this Ordinance, th� C�ty
expressly reserves the right to issue any obligations in any lawfu( amount, of any
�� nature or kind and for any lawful purpose which are payable whally from taxotion
and/or from any other revenues of the City.
Section 15. That,in addition to any other rights and remedies pravided by
the laws of the State of Texas, the City covenants and agrees that in event of
default in the paymenfi of principal of or interesfi on any of the obligations
authorized and permitted hereby when due, or failure to make the paymenfis
required into the Certificafie Fund or defau(ts in the observonce or performance of
any of the covenanfis, conditions or obligations set forth in this Ordinance, fhe
holder or holders of any of the obligations authorized or permitted hereby shall be
entitled to apply for a writ of mandamus to a court of proper jurisdiction for the
purpose of compelling and requiring the City and fihe officials�thereof to observe
and perforrn any covenants, obligations or conditions prescribed in this Ordinance.
No delay or omission to exercise any right or power accruing upon any defaulfi
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 as often as may be deemed expedient. The specific
remedies provided herein shall be cumulative of all ofiher existing remedies, and
the specification of such remedies shall nofi be deemed fio be exclusive.
�,,,,; Section 16, It is the intention of this governing body end accordingly here
recognized and stipulated fihat any provisions, conditions and other recifials which
may be contained in the ordinances authorizing Prior Lien Bonds which bear upon
the management of fihe affoirs of the City's Waterworks and Sewer System and
methods providing and administering its revenues shall be applicable as appropriate
to the Cerfiificates herein aufihorized but in 411 respects subject to the priorities
of the Prior Lien Bonds.
Section 17. Thot all of said Certificates, being numbered One (1) i-hrough
Ninety (90), both inclusive, are hereby sold in accordance with law and shall be
delivered to FIRST SOUTHWEST COMPANY, Dallas, Texas, for the principal amount
thereof plus accrued interest to the date of delivery. Any such accrued interest
shall be deposited into the Certificate Interest and Sinking Fund.
Section 18. That the purchasers' obligation to accepfi delivery of the
Certificates herein authorized is subject to their being furnished a fina) opinion
of Messrs. Hutchison Price Boyle 8� Brooks, Attorneys, Datlas, Texas, opproving
such Certificates as to their validity, said opinion to be dated and delivered as of
the dafie of delivery and paymenfi of such Certificates. Printing of a true and
correct copy of said opinion on the reverse side of each of such Certificafies, with
� appropriate certificate pertaining fihereto executed by facsimile signature of the
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City Secretary is hereby approved and authorized.
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Section 19. The Mayor of the City shall be and he is hereby authorized
to take and have charge of all necessary orders and records pending investigation
'�`" " by the Attorney General of the Stote of Texas, and shal i 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 20, That said� City hereby covenants that the proceeds from the
sale of said Certificates wil) be used as soon as practicable for the purpose for
which said Certificates are issued; that such proceeds witl not be invested in any
securities or obligations except for the temporary period pending such use; and
thafi such proceeds will not be used directly or indirectly so as to cause all or any
part of said bonds to be or become "arbitrage certificates" within the meaning of
Section 103(c) of the Infiernal Revenue Code of 1954, as amended; or any regulations
or rulings prescribed or made pursuant thereto.
Section 21. There is hereby appropriated from the available and Surplus
Revenues of the City sufficient and adequate funds to pay the October 1, 1979
interest payment.
k� PASSED AND APPROVED this the 5th day of September, 1978.
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Mayor, City of Grapevine, Texcs
ATTEST:
Ci ty Sec tary i ty of Grapevin , Texas
VED AS TO LEGALI •
[SEAL) , �
City ttiorney
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