ORD CC 12/09/75 - Annual Aid BondsORDINANCE NO. 75 -20
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,
AUTHORIZING THE ISSUANCE OF A SINGLE "CITY OF HUNTSVILLE, TEXAS,
EQUIPMENT ACQUISITION CERTIFICATE OF OBLIGATION ", DATED DECEMBER
9, 1975, IN THE AMOUNT OF $ 1 000.0 PRESCRIBING THE FORM OF
CERTIFICATE AND THE FORM OF ENDOR BENT 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 9th day of December, 1975, the
City Council of the City of Huntsville, Texas, by ordinance duly
adopted and entered of reccrd 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.
Water Department in order to provide for the public health and welfare,
at a cost to the City in the amount of the extended bid for such
equipment,, namely $ 17,581.11; and
WHEREAS, in said ordinance the City Council found that a
portion of the purchase price for such equipment in the amount of
$ 10,000.00 should be represented by a single issue certificate of
obligation and that all notices required by law have been issued and
all things requisite done in order to adopt an ordinance authorizing
the issuance of said interest bearing certificate of obligation of
the City in the amount of $ 10,000.00 for such purposes upon terms
approved by the City Council, said certificate is to bear interest at
a rate not to exceed 6 1/2 % percent per annum and to mature not later
than December 9, 1977, and to be 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 notices requesting bids for the
purchase of such equipment and the publication thereof in the City's
official newspaper, The Huntsville Item, was made on November 23 and
November 30, 1975, and October 30 and November 6, respectfully as to
such notices and advertisement for bids, which publications were made
within the time and in the manners as required by law; and
WHEREAS it appears to the City Council that all prerequisites
to the valid authorization of the intended certificate of obligation
for its stated purpose, has been accomplished in accordance with the
law, including the certificate of obligation act of 1971, and that
this Council may therefore proceed with the ordinance authorizing the
issuance of said Certificate of Obligation;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF HUNTSVILLE, TEXAS:
Section 1: That one interest bearing certificate of
obligation of the City of Huntsville to be known and designated
as "City of Huntsville, Texas, Equipment Acquisition Certificate
of Obligation ", in the principal sum of $ 10,000.00, shall be, and
the same is hereby authorized to be issued and the same is hereby
issed for public purposes, to -wit: the acquisition of a John Deere
410 Backhoe Loader for use by the City of Huntsville Water Department,
in providing for the health and welfare of the public, and the Mayor
and City Secretary shall have joint control of such certificate for
the purposes of delivering sane to the owners in accordance with this
ordinance and they shall see to the proper completion thereof in
accordance herewith.
Section 2: That said certificate shall be dated December 9,
1975, shall mature and be payable in installments (subject to the
City's option of prior payment), shall be in the denomination, and
shall bear interest as set forth in the following form, to -wit:
Dated: December 9, 1975 $ 10,000.00
ISSUED: 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
TEN THOUSAND DOLLARS AND NO /100
($ 10,000.00) in lawful money of the United States of America, with
interest thereon from date until paid at the rate of six one -half
(6 1/2) per cent per annum, payable on December 9, 1976, and annually
thereafter on December 9, 1977.
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
principal to be paid upon presentation of this certificate for principal
payment endorsement, and the interest to be paid upon presentation hereo
for interest payment endorsement by said Bank on the reverse side hereof
The principal and interest of this certificate of obligation
is payable in annual installments, as follows:
•
DATE
PRINCIPAL INTEREST
December 9, 1976 $ 5,000.00
December 9, 1977 $ 5,000.00
as accrued
as accrued
This certificate of obligation represents a single issue
certificate of obligation of the issue authorized by the City Council
for the purpose of acquiring a John Deere 410 Backhoe Loader, all
pursuant to notice of intention duly issued and published in the
time and manner prescribed by law and :._n 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 9th day of December
1975, 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 thereo
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, ha
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 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 obligatio
to be signed by the Mayor and attested to by the City Secretary, the
date of this certificate of obligation being the 9th day of December,
1975.
MORRIS I. WALLER, MAYOR
ATTEST:
RUTH DeSHAW, CITY SECRETARY
• •
FULL CONSIDERATION therefor being hereby acknowledged,
this certificate of obligation was delivered to HEINZ EQUIPMENT
COMPANY of Conroe, Texas, the original holder, on this date, to -wit:
, and by it hereby transferred and assigned
to First National Bank, Huntsville, Texas.
Section 3: While said certificate 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 certificate 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 %,whichever 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 certificate of obligation is 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 certificate 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 certificate 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 provide and levy a tax
legally and fully sufficient for such certificate 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 obligations.
Section 4: The Mayor and City Secretary are hereby empowered
and directed to proceed with the delivery of said certificate 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, requires that this ordinance take effect and
be 1n 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 certificate of obligation, such certificate shall be dated
and bear interest from date of delivery and execution by the Mayor
and City Secretary.
PASSED AND APPROVED on first reading by unanimous vote of
the City Council of the City of Huntsville, Texas, on this the
9th day of December, 1975.
ORRIS I. WALLER, MAYOR
DeSHAW, CITY SE RETARY
VED AS TO FOR
MARTIN D. COLLEY
C) ITY ATTORNEY
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