ORD CC 05/10/77 - Obligation BondsORDINANCE NO.
77 -8
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,
AUTHORIZING THE ISSUANCE OF A SINGLE SERIES "CITY OF HUNTSVILLE, TEXAS,
EQUIPMENT ACQUISITION CERTIFICATE OF OBLIGATION ", DATED MAY 10, 1977,
IN THE AMOUNT OF $ 23,127.00, 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
COLLECITON OF SUCH TAXES; AND ENACTING PROVISIONS INCIDENT AND RELATING
TO THE PURPOSE AND SUBJECT OF THIS ORDINANCE.
WHEREAS, heretofore on the 10th day of May, 1977, 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 Street 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 single series
interest bearing certificates of obligation of the City, in an amount
of $ 23,127.00, for such purposes and upon terms approved by the City
Council, said Certificate to bear interest at a rate of interest not
to exceed 6.1 % per cent per annum and to mature not later than May .10,
1980, 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 as provided by law as well as notice of
the intent to issue said Certificates of Obligation on May 10, 1977,
in an amount not to exceed $ 23,127.00, all of which publications and
notices were within the time and manner 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 a single series interest bearing Certificate of
Obligation of the City of Huntsville, Texas, to be known and designated
as "City of Huntsville, Texas, Equipment Acquisition Certificate of
Obligation" in the principal sum of $ 23,127.00, shall be, and the same
is hereby, authorized to be issued and the same is hereby issued for
public purposes, to -wit: the acquisition of 3 24,000 G.V.W. Trucks
Cabs and Bodies for use by the City of Huntsville Street Department as
dump trucks, all for public purposes, and the Mayor and City Secretary
shall have joint control of such certificate for the purpose of delivering
same to the owner 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 May 10, 1977,
and shall mature and be payable in three 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 be in the
following basic form, to -wit:
Dated: May 10, 1977 Amount
ISSUED:
Register No.
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 TWENTY THREE THOUSAND ONE
HUNDRED TWENTY SEVEN AND NO /100 ($ 23,127.00)DOLLARS, in lawful money
of the United States of America, with interest thereon from date of
issue until paid at the rate of 6.1 % percent per annum, payable on
May 10, 1978, and annually thereafter on the 10th day of May 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
May 10, 1978
May 10, 1979
May 10, 1980
PRINCIPAL
$ 7,709.00
$ 7,709.00
$ 7,709.00
INTEREST
as accrued
as accrued
as accrued
This Certificate of Obligation is a single series Certificate of
Obligation of the issue authorized by the City Council of the City of
Huntsville for the purpose of acquiring Street Department Equipment, and
in accordance with an Ordinance duly confirming the purchase of such
equipment adopted and passed by the City Council of Huntsville, on the
10th day of May, 1977, 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 be signed
by the Mayor and attested to by the City Secretary, the date of this
Certificate of Obligation being the 10th day of May, 1977.
L12_44144LX--
ORRIS I. WALLER, MAYO
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 PORT CITY FORD COMPANY
the original holder, on this date, to -wit: May , 1977, and by it
hereby transferred and assigned to FIRST NATIONAL BANK OF HUNTSVILLE,
HUNTSVILLE, WALKER COUNTY, TEXAS.
PORT CITY FORD COMPANY
RV•
Authorized Representative
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 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 purposes
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 said Certificate of Obligation
hereinabove authorized shall be six and one -tenth (6.1 %) per cent per
annum and at the time said Certificates of Obligation are issued such
Certificate shall be registered and recorded by such registered 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 10th day of May,
1977.
ATTEST:
eSHAW, CITY SECRETARY
PROVED AS TO FO
MARTIN D. COLLEY
CITY ATTORNEY
J.444K__
MORRIS I. WALLER, MAYOR
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