ORD CC 1980-45 - Certificates of Obligation*.
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ORDINANCE NO. 80 -45
AN ORDINANCE AUTHORIZING ISSUANCE OF A SERIES OF CITY
OF HUNTSVILLE PUBLIC WORKS- POLICE AND MUNICIPAL COURT
BUILDING CERTIFICATES OF OBLIGATION, IN THE AMOUNT OF
$70,000.00; AND CONTAINING OTHER PROVISIONS RELATED
TO THE SUBJECT.
WHEREAS, the City Council of the City of Huntsville, Texas, has heretofore
purchased land and an existing building for police and municipal court
building purposes for the City; and
WHEREAS, the City Council finds it necessary to construct interior additions
and improvements to said property; and
WHEREAS, the City has authorized the publication of intention to issue certi-
ficates of obligation, payable from City ad valorem taxes, for the purpose
of evidencing the indebtedness of the City for all or part of the costs
of said construction and improvements to the police and municipal court
building; therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS:
Section 1: The City Council hereby approves, ratifies, and confirms in all
respects the contract with Circle Double "C" Ent., Inc. for construction
of interior additions and improvements to the police and municipal court
building.
Section 2: The City's negotiable Certificates of Obligation, to be designated
as City of Huntsville, Texas, Public Works - Police and Municipal Court
Building Certificates of Obligation, Series 1980, (hereinafter called
Certificates) are hereby authorized to be issued and delivered in the
principal amount of $70,000 for the purpose of evidencing the indebted-
ness of the City for all or any part of the cost of the remodeling of
the Police and Municipal Court Building.
Section 3: The Certificates shall be dated October 8, 1980, shall be numbered
consecutively from 1 through 7, shall be in the denomination of $10,000
each, and shall mature April 15, 1982. The Certificates may be redeemed
prior to their scheduled maturities, at the option of the City, at any
time after delivery, in the manner provided in the Form of Certificate.
Section 4: The Certificates shall bear interest from the date of initial de-
livery shown on the face of each Certificate at a rate per annum not in
excess of that prescribed by Article 717K -2, Texas Revised Civil Statutes,
as amended, interest payable at maturity on April 15, 1982, or upon
prepayment.
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Section 5: The Certificates shall be registered as hereinafter set forth,
and shall be in the following basic form, to -wit:
FORM OF CERTIFICATE
No. $10,000.00
October 8, 1980
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF WALKER
CITY OF HUNTSVILLE, TEXAS
PUBLIC WORKS- POLICE AND MUNICIPAL COURT BUILDING
CERTIFICATE OF OBLIGATION
SERIES 1980
On April 15, 1982, the CITY OF HUNTSVILLE (the "City ") in the County
of Walker, in the State of Texas, promises to pay to bearer the
principal amount of
TEN THOUSAND DOLLARS
($10,000) and to pay interest thereon, from the initial date of delivery
shown on the face hereof, at the rate of % per annum payable on
or before April 15, 1982. The principal of this Certificate and the
interest shall be payable to the registered owner hereof in lawful money
of the United States of America, without exchange or collection charges,
upon presentation and surrender of this Certificate at
(Bank), , Texas, which shall be the
paying agent for this series of Certificates.
THIS CERTIFICATE is one of a series of negotiable certificates, dated
October 8, 1980, numbered consecutively from 1 through 7, in the denom-
ination of $10,000 each, aggregating $70,000, issued in accordance with
the Constitution and laws of the State of Texas, particularly Article
2368a.1, Texas Revised Civil Statutes, as amended, for the purpose of
providing up to $70,000 for the costs of construction of interior addi-
tions and improvements incurred in connection with the remodeling of
the Police and Municipal Court Building of the City.
The City reserves the right to prepay all or any part of this Certifi-
cate at any time prior to the due date or maturity thereof without
premium or penalty of any kind.
IT IS HEREBY certified, recited, and covenanted that this Certificate
has been duly and validly authorized, issued, and delivered; that
all acts, conditions, and things required or proper to be performed,
exist, and be done precedent to or in the issuance and delivery of
this Certificate, have been performed, existed, and been done in ac-
cordance with law; that annual ad valorem taxes sufficient to provide
for the payment of the interest on and principal of this Certificate,
as such interest comes due and such principal matures, have been levied
and ordered to be levied against all taxable property in the City and
have been pledged for such payment within the limits prescribed by
law; that this Certificate shall be a debt of the City within the mean-
ing of Article XI, Sections 5 and 7 of the Constitution of Texas.
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
1980, Certificate No.
ATTEST:
City Secretary
Mayor
FULL CONSIDERATION therefor being hereby acknowledged, this Certificate
of Obligation was delivered to CIRCLE DOUBLE "C" ENT., INC., the original
holder, on this date, to-wit: (Delivery date) and by it hereby trans-
ferred and assigned to
CIRCLE DOUBLE "C" ENT., INC.
By
Section 5: While said Certificates 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 prin-
cipal 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 Obliga-
tion 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 Certificate of Obligation is outstanding
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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 sink -
ing 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 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
provide and levy a tax legally and fully sufficient for such Certifi-
cates 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 6: Claims incurred for the purposes set forth in Section 2 hereof
may be funded and exchanged for a like total principal amount of Cer-
tificates, and any amount in excess of the principal amount of Certi-
ficates delivered at any one time may be paid in cash or carried forward
to a subsequent exchange or exchanges of claims for certificates.
Section 7: The Mayor and all other officers of the City are authorized and
directed to do any and all things necessary or convenient to carry out
the provisions of this ordinance.
Section 8: At the time said Certificates of Obligation are issued such Cer-
tificates shall be registered and recorded by such register number on
the books of said City to the Registered Owner thereof.
Section 9: That the public importance of this measure and the fact that it
is to the best interest of the City to construct the public works herein
contemplated at the earliest possible date, for the immediate preserva-
tion 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.
PASSED AND APPROVED on first reading by unan mous vote of the City Council
of the City of Huntsville, Texas, on this the fh day of Oct. , 1980.
APPROVED:
ed�l g,L'
SCOTT BOUNDS, City Attorney
M RRIS I. WALLER, Mayor