ORD CC 12/14/76 - Obligation BondsORDINANCE NO. 76 -27
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,
AUTHORIZING THE ISSUANCE OF A SERIES OF TWO (2) "CITY OF HUNTSVILLE,
TEXAS, EQUIPMENT ACQUISITION CERTIFICATES OF OBLIGATION ", dated
December 14, 1976, IN THE AMOUNTS OF $ 61,654.00 and $ 6,100.00,
RESPECTIVELY, PRESCRIBING THE FORM OF A CERTIFICATE 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 December, 1976, 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 the connection with the City of
Huntsville's Sanitation and Street Departments 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 (2)
interest bearing certificates of obligation of the City, amounts not
to exceed $ 61,654.00 and $ 6,100.00, respectively, for such purposes
upon terms approved by the City Council, said Certificates are to bear
interest at a rate of interest not to exceed 6.1
per cent per annum and to mature not later than December 14, 1981, and
to be issued upon the full faith and credit of the City and payable
from ad valorem taxes;
WHEREAS, official notice of the City Council's intentions
aforementioned was duly given and the notices requesting for the
purchase of such equipment and the publication thereof in the City's
official newspaper, The Huntsville Item, was made on November 2 and
November 9, 1976, and the notice for intention to issue said Certificates
of Obligation was likewise published in said paper on November 23 and
November 28, 1976, all of which publications were within the time and
manner as required by law; and,
• A •
WHEREAS, it appears to the City Council that all prerequisites
to the valid authorization of the intended Certificates of Obligation
for its stated purposes, has been accomplished in accordance with 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 HUTNSVILLE, TEXAS:
Section 1. That a series of two (2) interest bearing Certificates
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 sums of $ 61,654.00 and $ 6,100.00,
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 trash & refuse compactor and tractor with mower attach-
ment for use by the City of Huntsville Sanitation Department and Street
Department, all for public purposes, and the Mayor and City Secretary
shall have joint control of such Certificates for the purpose of
delivering same to the owners in accordance with this Ordinance and
they shall see to the proper completion thereof in accordance herewith.
Section 2. That said Certificates shall be dated December 14,
1976, and shall mature and be payable in five equal installments
(subject to the City's option of prior payment), shall be in the
denomination, as hereinabove authorized, shall bear interest as
hereinafter set forth, shall be registered as hereinafter set forth,
and shall each be in the following basic form, to -wit:
Dated: December 14, 1976 Amount
Register No.
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 the registered owner hereof in installments and on
the dates as below indicated the total sum of
( ), in lawful money of the United States of
America, with interest thereon from date of issue until paid at the
rate of per cent per annum, payable on December
14, 1977, and annually thereafter on the 14th day of December of each
and every year as hereinafter provided until such aggregate sum is
fully paid.
BOTH PRINCIPAL AND INTEREST on this Certificate of Obligation
are hereby made payable in Huntsville, Walker County, Texas, without
exchange or collection charges to the registered owner hereof, with
such payments to be due on the dates and in the amounts as follows:
DATE
PRINCIPAL INTEREST
December 14, 1977
December 14, 1978
December 14, 1979 Appropriate Amortization Schedule
December 14, 1980
December 14, 1981
This Certificate of Obligation is one of a series of two (2)
Certificates of Obligation of the issue authorized by the City Council
of the City of Huntsville for the purpose of acquiring Sanitation and
Street Department Equipment, and in accordance with an Ordinance duly
confirming the purchase of such Sanitation Equipment adopted and passed
by the City Council of the City of Huntsville on the 14th day of December,
1976, and duly recorded in the minutes of the 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 with-
out 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 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 14th day of December,
1976.
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
the original holder, on this date, to -wit:
1976, and by it hereby transferred and assigned to
(Assignor)
Section 3: While said Certificate of Obligation or installment,
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 collection, 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
Obligation 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. The interest rate for each of the Certificates of
Obligation hereinabove authorized shall be as follows:
Certificate Register No. $ 61,654.00 6.1%
Certificate Register No. $ 6,100.00 6.1%
At the time said Certificates of Obligation are issued such Certificates
shall be registered and recorded by such register number on the books
of said City to the Registered owner thereof.
Section 6. 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, and this ordinance shall take effect and be in force
from and after its passage and approval, and it is so ordained.
Section 7: 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 14th day
of December, 1976.
H DeSHAW, CI- EC TARY
ROVED AS TO F
Y
ITY ATTORNEY
MORRIS I. WALLER, MAYOR