ORD CC 07/18/78 - Obligation BondsORDINANCE NO. 78-8
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,
AUTHORIZING THE ISSUANCE OF A SERIES OF THREE (3) "CITY OF HUNTSVILLE,
TEXAS, EQUIPMENT ACQUISITION CERTIFICATES OF OBLIGATION ", DATED
IN THE AMOUNTS OF $ 19,770.00, $ 84,890.00 and
$ 40,000.00 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 P'tb day of July 1978, 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 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 three (3)
interest bearing certificates of obligations of the City, amounts not
to exceed $ 19,770.00,$84,890.00 and $ 40,000.00, 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
and per cent per annum and to mature not later than
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
aforementiondd 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 2 -20 -77 & 3 -24 -78 and
2 -23 -77 and 3 -29 -78 the notice for intention to issue said Certificates
of Obligation was likewise published in said paper on 2 -20 -77 and 3 -24 -78
and 2-23-77 and 3 -29 -78 all of which publications 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 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 HUNTSVILLE, TEXAS:
Section 1. That a series of three (3) 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 $ 19,770.00 $ 84,890.00 and
$ 40,000.00, respectively, shall be, and the same are hereby, authorized
to be issued and the same are hereby issued, to -wit: the acquisition of
10 Roll Off Containers, Track Loader, and NCR Computer (8250) for the
use by the City of Huntsville, 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
and shall bearinterest as hereinafter set forth, shall be registered
as hereinafter set forth, and shall each be in the following basic
form, to -wit:
Dated:
ISSUED:
Amount
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
( ), 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
and annually thereafter on the day of 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
Appropriate Amortization Schedule
This Certificate of Obligation is one of a series of three (3)
Certificates of Obligation of the issue authorized by the City Council
of the City of Huntsville for the purpose of acquiring equipment, and
in accordance with an Ordinance duly confirming the purchase of such
equipment adopted and passed by the City Council of the City of Huntsville
on the day of , 1978, 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 beenIroperly 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 day of
1978.
ATTEST:
MORRIS I. WALLER, MAYOR
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:
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 Certificates 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 Certificates
of Obligation, it having been determined that the existing and avail-
able 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 each of the Certificates of
Obligation hereinabove authorized shall be as follows:
Certificate Register No,
Certificate Register No.
Certificate Register No.
$ 19,770.00
$ 84,890.00
$ 40,000.00
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 0 day of
JULY 1978.
ATT
RUTH DeSHAW, C TY SECRETARY
APPROVED AS TO FORM:
JACK N Y
CITY ATTORNEY
MORRIS I. WALLER, MAYOR