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ORD CC 05/28/74 - Obligation BondsOrdinance No 74 -10 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AUTHORIZING THE ISSUANCE OF A SERIES OF TWO "CITY OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION CERTIFICATES OF OBLIGATION ", DATED MAY 15, 1974, IN THE AMOUNTS OF $15,854.00 AND $9,360.00, RESPECTIVELY, PRESCRIBING THE FORM OF CERTIFICATES AND THE FORM OF ENDORSEMENT TO APPEAR THEREON: LEVYING A CONTINUING DIRECT ANNUAL AD VALOREM TAX ON ALL TAXABLE PROPERTY WITHIN THE LIMITS OF THE SAID CITY TO PAY THE INTEREST THEREON AND TO CREATE A SINKING FUND FOR REDEMPTION THEREOF, AND PROVIDING FOR THE ASSESSMENT AND COLLECTION OF SUCH TAXES; AND ENACTING PROVISIONS INCIDENT AND RELATING TO THE PURPOSE AND SUBJECT OF THIS ORDINANCE. WHEREAS, heretofore, on the 14th day of May, 1974, the City Council of the City of Huntsville, Texas, by ordinance duly adopted and entered of record officially ascertained, determined and confirmed its prior determination that it is necessary and in the best interest of the City and its inhabitants that the City acquire certain equipment to be used in connection with the City of Huntsville's mobil radio operations and the City of Huntsville's Sanitation Department, for public purposes, at a cost to the City in the amount of accepted bids for each item of said equipment; and WHEREAS, in said ordinance, the City Council found that all notices required by law have been issued and all things requisite done in order to adopt an ordinance authorizing the issuance of a series of two interest bearing Certificates of Obligation of the City in amounts not to exceed $15,854.00 and $9,360.00, respectively, for such purposes upon terms approved by the City Council, said Certificates are to bear interest at a rate not to exceed six (6) per cent per annum and to mature not later than May 15, 1977, and May 15, 1979, respectively; issued upon the full faith and credit of the City and payable from ad valorem taxes; and WHEREAS, official notice of the City Council's intentions aforementioned was duly given and the notice requesting bids for the purchase of such equipment and the publication thereof in the City's official newspaper, The Huntsville Item, was made within the time and in the manner as required by law regarding said Sanitation Equipment, and by the Houston - Galveston Area Council in connection with the miscellaneous Radio Equipment as authorized by agreement between member cities of the Houston - Galveston Area Council; and WHEREAS, it appears to the City Council that all prerequisites to the valid authorization of the intended Certificates of Obligation for their stated purposes, has been accomplished in accordance with the law, including the Certificates of Obligation Act of 1971, and that this Council may therefore proceed with the ordinance authorizing the issuance of said Certificates of Obligation; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS: Section 1: That a series of two interest bearing Certificates of Obligation of the City of Huntsville to be known and designated as "CITY OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION CERTIFICATES OF OBLI- GATION", in the principal sums of $15,854.00 and $9,360.00, respectively, shall be and the same are hereby authorized to be issued and the same are hereby issued for public purposes, to-wit: the acquisition of miscellaneous Radio Equipment including 21 mobile units, 1 base station, 4 remote desk sets and 1 antenna for the City of Huntsville's operations, and the acquisition of 38 Sanitation Containers for the Sanitation Department for City use, and the Mayor and City Secretary shall have joint control of such Certificates for the purposes of delivering same to the owners in accordance with this ordinance and they shall see to the proper comple- tion thereof in accordance herewith. Section 2: That said Certificates shall be dated May 15, 1974, and shall mature and be payable in installments (subject to the City's option of prior payment), shall be in the denominations, and shall bear interest as set forth in the following forms, to-wit: $15,854.00 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF WALKER CITY OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION CER- TIFICATE OF OBLIGATION The City of Huntsville, a municipal corporation of the State of Texas, acknowledges itself indebted to and FOR VALUE RECEIVED hereby promises to pay to bearer in installments as below indicated the total sum of FIFTEEN THOUSAND EIGHT HUNDRED AND FIFTY-FOUR DOLLARS ($15,854.00), in lawful money of the United States of America, with interest thereon from date until paid at the rate of Six (6%) per cent per annum, payable on May 15, 1975, and annually thereafter on May 15th of each year. BOTH PRINCIPAL AND INTEREST on this Certificate of Obligation are hereby made payable at the First National Bank, Huntsville, Texas, without exchange or collection charges to the owner or holder, the prin- cipal to be paid upon presentation of this Certificate for principal pay- ment endorsement, and the interest to be paid upon presentation hereof for interest payment endorsement by said Bank on the reverse side hereof. The principal of this Certificate of Obligation is payable in annual installments , as follows: -2- May 15, 1975 May 15, 1976 May 15, 1977 $5,284.66 $5,284.66 $5,284.68 THIS CERTIFICATE OF OBLIGATION represents one of a series of two Certificates of Obligation of the issue authorized by the City Council for the purpose of acquiring Miscellaneous Radio Equipment for City use, all pursuant to notice of intention duly issued and published in the time and manner prescribed by law and in accordance with an ordinance duly confirming the purchase of said equipment adopted and passed by the City Council of the City of Huntsville on the 14th day of May, 1974, and duly recorded in the Minutes of said City Council. The City reserves the right to prepay all or any part of this Certificate at any time prior to the due date or maturity thereof without premium or penalty of any kind. It is hereby certified and recited that all acts, conditions and things required to be done precedent to and in the issuance of this Certificate of Obligation, and of the series of which it is a part, to render the same lawful and valid have been properly done, have happened and have been performed in regular and due time, form and manner as re- quired by law; that due and-proper provision has been made for the levy of a direct and continuing annual ad valorem tax against all taxable property within the said City sufficient to pay the interest on this Certificate of Obligation as due and to provide for the payment of each installment of principal as same matures; that the City has received full value and con- sideration for this Certificate of Obligation and that the total indebt- edness of the City of Huntsville, including this Certificate of Obligation, does not exceed any constitutional or statutory limitation. IN TESTIMONY WHEREOF, the City Council has caused the seal of said City to be impressed hereon and this Certificate of Obligation to be signed by the Mayor and attested to by the City Secretary, the date of this Certificate of Obligation being the 15th day of May, 1974. MORRIS I. WALLER, Mayor ATTEST: RUTH DeSHAW, City Secretary (Form of Certificate of Delivery and Assignment to be typed on the back of Certificate of Obligation) FULL CONSIDERATION therefor being hereby acknowledged, this Certificate of Obligation was delivered to MOTOROLA COMMUNICATIONS AND ELECTRONICS, INC., the original holder, on this date, to-wit: May 15, 1974, and by it hereby transferred and assigned to First National Bank, Huntsville, Texas. MOTOROLA COMMUNICATIONS AND ELECTRONICS, INC. BY: $9,360.00 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF WALKER CITY OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION CERTIFICATE OF OBLIGATION The City of Huntsville,a.municipal corporation of the State of Texas, acknowledges itself indebted to and FOR VALUE RECEIVED hereby promises to pay to bearer in installments as below indicated the total sum of NINE THOUSAND THREE HUNDRED SIXTY DOLLARS ($9,360.00), in lawful money of the United States of America, with interest thereon from date until paid at the rate of Six (6%) per cent per annum, payable on May 15, 1975, and annually thereafter on May 15th of each year. BOTH PRINCIPAL AND INTEREST on this Certificate of Obligation are hereby made payable at the First National Bank, Huntsville, Texas, without exchange or collection charges to the owner or holder, the prin- cipal to be paid upon presentation of this Certificate for principal pay- ment endorsement, and the interest to be paid upon presentation hereof for interest payment endorsement by said Bank on the reverse side hereof. The principal of this Certificate of Obligation is payable in annual installments as follows: May 15, 1975 May 15, 1976 May 15, 1977 May 15, 1978 May 15, 1979 -4- $1,872.00 $1,872.00 $1,872.00 $1,872.00 $1,872.00 THIS CERTIFICATE OF OBLIGATION represents one of a series of two Certificates of Obligation of the issue authorized by the City Council for the purpose of acquiring certain Sanitation Department Equipment for the City, all pursuant to notice of intention duly issued and published in the time and manner prescribed by law and in accordance with an ordinance duly confirming the purchase of said equipment adopted and passed by the City Council of the City of Huntsville on the 14th day of May, 1974, and duly recorded in the Minutes of said City Council. The City reserves the right to prepay all or any part of this Certificate at any time prior to the due date or maturity thereof without premium or penalty of any kind. It is hereby certified and recited that all acts, conditions and things required to be done precedent to and in the issuance of this Certificate of Obligation, and of the series of which it is a part, to render the same lawful and valid have been properly done, have happened and have been performed in regular and due time, form and manner as required by law; that due and proper provision has been made for the levy of a direct and continuing annual ad valorem tax against all taxable property within the said City sufficient to pay the interest on this Certificate of Obligation as due and to provide for the payment of each installment of principal as same matures; that the City has received full value and consideration for this Certificate of Obligation and that the total indebtedness of the City of Huntsville, including this Certificate of Ob- ligation, does not exceed any constitutional or statutory limitation. IN TESTIMONY WHEREOF, the City Council has caused the seal of said City to be impressed hereon and this Certificate of Obligation to be signed by the Mayor and attested to by the City Secretary, the date of this Certificate of Obligation being the 15th day of May, 1974. MORRIS I. WALLER, Mayor ATTEST: RUTH DeSHAW, City Secretary (Form of Certificate of Delivery and Assignment to be typed on the back of Certificate of Obligation) • • • • FULL CONSIDERATION THEREFOR being hereby acknowledged, this Certificate of Obligation was delivered to SCOTT HOLMAN COMPANY, INC., the original holder, on this date, to -wit: May 15, 1974, and by it hereby transferred and assigned to First National Bank, Huntsville, Texas. SCOTT HOLMAN COMPANY, INC. BY: Section 3: While said Certificates of Obligation or install- ments thereof are outstanding and unpaid, there shall be annually levied, assessed and collected in due time, form and manner a tax upon all of the taxable property in said City sufficient to pay the current interest thereon and to create a sinking fund sufficient to pay each installment of principal as the same becomes due, or a sinking fund of 2 %, whichever is greater; and in order to pay the interest on said Certificates of Obligation for the first year and to create a sinking fund with which to pay the principal as the same becomes due, or a sinking fund of 2 %, which ever is greater, there is hereby levied a sufficient tax on each One Hundred Dollars valuation of taxable property in said City for the current year and the same shall be assessed and collected and applied to the purposes named; and while said Certificates of Obligation are outstanding and unpaid, a tax each year at a rate from year to year as will be ample and sufficient to provide funds to pay the then current interest on said Certificates of Obligation and to provide the necessary sinking fund, full allowance being made for delinquencies and costs of collections, shall be and is hereby levied for each year, respectively, and said tax shall each year be assessed and collected and applied to the payment of the principal of and interest on said Certificates of Obligation, to be kept separate and apart from all other funds of the City. The City Council hereby declares and covenants that it will pro- vide and levy a tax legally and fully sufficient for such Certificates of Obligation, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax in consideration of all other outstanding ob- ligations. Section 4: The Mayor and City Secretary are hereby empowered and directed to proceed with the delivery of said Certificates of Obli- gation and the closing of said acquisition at the earliest practicable date and are authorized to complete the same in accordance with the terms hereof and to do all things necessary or prerequisite thereto. Section 5: That the public importance of this measure and the fact that it is to the best interest of the City to acquire the equipment herein contemplated at the earliest possible date, for the immediate preservation of the public peace, property, health and safety of the City and its citizens, creates an emergency and an imperative public necessity that the rule requiring ordinances to be read at two meetings of the City Council, be suspended, and said rule is hereby suspended, and these ordinances shall take effect and be in force from and after its passage and approval, and it is so ordained. • •• •• Section 6: Notwithstanding any other provisions in the within ordinance to the contrary as to the authorized issuing date for such Certificates of Obligations, such certificates shall be dated and bear interest from date of delivery and execution by the Mayor and City Secretary. 1st Reading May 14, 1974 Yeas rj No. / 2nd Reading May 28, 1974 Yeas 7 No / Passed and approved this _22e day of May, A. D., 1974. Attest: R T '` 'AW, City Secretary APPROVED AS TO FO RRIS I. WALL R, Mayor RTIN D. COLLEY, City Att y