ORD CC 07/29/75 - Promissory Note - Police DepartmentORDINANCE N0. 75 -13
AN ORDINANCE AUTHORIZING THE PURCHASE OF REAL ESTATE
FOR PUBLIC PURPOSES, CONFIRMING A RESOLUTION HERETOFORE
PASSED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,
FINDING THAT A NECESSITY EXISTS FOR THE PURCHASE OF REAL
ESTATE FOR FUTURE EXPANSION OF THE CITY POLICE DEPARTMENT,
AUTHORIZING THE MAYOR OF THE CITY TO EXECUTE AND DELIVER
A PROMISSORY NOTE FOR THE PURCHASE PRICE BEARING INTEREST
AT 6% PER ANNUM, AND PAYABLE IN 15 ANNUAL INSTALLMENTS OF
BOTH PRINCIPAL AND INTEREST, LEVYING A CONTINUING DIRECT
ANNUAL AD VALOREM TAX ON ALL TAXABLE PROPERTY WITHIN THE
LIMITS OF 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.
WHEREAS, the City Council of the City of Huntsville, Texas,
has heretofore by Resolution duly made, determined that a necessity
exists in the public interest for the purchase of real estate for
future expansion of the City Police Department and authorize the acqui-
sition for certain real estate as located in Block 14 of the City of
Huntsville, Texas, such purchase to be concluded upon successful sale
by the City of certain excess property with the proceeds derived from
such sale to be applied to the purchase of the real estate to be acquired
for future expansion of the City Police Department, all of which con-
ditions have now been met and the owner of said property to be purchased
by the City stands ready to convey said real estate to the City upon
authorization of the Mayor to execute and deliver evidence of the City's
indebtedness for the purchase of such premises.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF HUNTSVILLE, TEXAS:
Section 1: That such Resolution heretofore passed by the City Council
determining that a necessity exists for the purchase of
certain real estate located in Block 14 of the City of
Huntsville for future expansion of the City Police Depart-
ment is in all things adopted and confirmed by the City
Council of said City and that the said City is hereby
authorized to purchase from E. M. SCHULZE, JR., TRUSTEE,
real estate located in Block 14 of said City consisting of
8,283 square feet of land, more or less, as more particularly
described in Exhibit "A" attached to this Ordinance and in-
corporated hereby by reference and adoption, for a total
purchase price of $25,000.00, with the sum of $10,000.00 to
be paid in cash and the balance in the amount of $15,000.00
to be paid by City in 15 annual installments of principal and
with the aggregate unpaid balance to bear interest at
the rate of 6% per annum until fully paid off and dis-
charged.
Section 2: That the Mayor of said City be, and he is hereby authorized
to execute and deliver to E. M. SCHULZE, JR., TRUSTEE a
promissory note to be a valid obligation of the City of
Huntsville, Texas, which shall be a general obligation of
said City, the same to be payable in 15 equal annual in-
stallments upon principal in the amount of $1,000.00 each,
together with accrued interest on the unpaid principal
balance at the rate of 6% per annum, and to accept in
return therefor a General Warranty Deed to the real estate
described in Exhibit "A" attached hereto, together with
an Owner's Policy of title insurance insuring said real
estate title to the City of Huntsville. Said promissory
note to be executed in behalf of said City shall be as set
forth in the following form:
$15,000.00
Huntsville, Texas , 1975
In installments as hereinafter provided, and after date,
without demand or notice, and without grace, for value received, the
City of Huntsville, Texas, a municipality, promises to pay to the order
of E. M. SCHULZE, JR., TRUSTEE, at the office of the Payee in the City
of Huntsville, Walker County, Texas, the sum of FIFTEEN THOUSAND AND NO /100
($15,000.00) DOLLARS, with interest thereon from date until maturity at
the rate of 6% per annum, with interest payable annually as it accrues.
The indebtedness evidenced hereby shall be a general obli-
gation of the City of Huntsville, Texas, a municipality, as authorized
pursuant to City Ordinance passed by the City Council of the City of
Huntsville, Texas, on July 29, 1975, and it is hereby certified and re-
cited that all acts, conditions and things required to be done precedent
to and in authorization of the execution of this evidence of indebtedness
as a general obligation of said City of Huntsville to render the same
lawful and valid have been properly done and 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 said City sufficient to pay
the interest on this obligation as due and to provide for the payment
of each installment of principal as same matures; that the City has re-
ceived full value and consideration for this indebtedness and that the
total indebtedness of the City of Huntsville, Texas, including this in-
debtedness, does not exceed any Constitutional or Statutory limitation.
In the event default is made in the payment of the principal
of this note, or any installment of interest hereon as the same becomes
due and payable, then the legal holder hereof shall have the option,
without demand or notice to the Maker to declare this note immediately
due and payable and may institute any legal action against the said City
of Huntsville to enforce the payment of same to the same extent as if such
obligation had been the obligation of a private individual.
The principal and interest of the within note shall be due
and payable by the City of Huntsville, Texas, in fifteen (15) annual
installments on principal in the amount of $1,000.00 each, plus the
accrued interest on the unpaid principal balance, and with the first of
such annual installments upon principal and interest, to be due and pay-
able on or before , 1976, and a like installment of both
principal and interests to be due and payable on or before the day
of - of each and every year thereafter until said note and indebted-
ness, and all interest to accrue thereon, has been fully paid off and
discharged.
IN WITNESS WHEREOF, the Mayor of said City has executed this
note on the day and date first above written pursuant to authorization
by Ordinance duly passed on July 29, 1975.
THE CITY OF HUNTSVILLE, TEXAS
BY:
ATTEST:
RUTH DeSHAW, City Secretary
MORRIS I. WALLER, MAYOR
Section 3: That while said indebtedness or any installment thereof is
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 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 $100.00 valuation of taxable property in said
City for the current year and the same shall be assessed
and collected and applied to the purposes stated herein; and
while said obligation is outstanding and unpaid, a tax each
year at a rate from year to year as will be ample and suffi-
cient to provide funds to pay the then current interest on
said obligation and to provide the necessary Sinking Fund,
full allowance being made for the delinquencies and cost of
collection, shall be and is hereby levied for each year, re-
spectively, and said tax shall each year be assessed and
collected and applied to the payment of the principal of
and interest on said indebtedness as a general obligation of
said City. The City Council hereby declares and covenants
that it will provide and levy a tax legally and fully suffi-
cient for such indebtedness, it having been determined that
the existing and available taxing authority of the City
for such purpose is adequate to permit a legally suffi-
cient tax in consideration of all other outstanding obli-
gations.
Section 4: That the Mayor and City Secretary are hereby empowered and
directed to proceed with the delivery of said promissory
note as evidence of indebtedness and the closing of said
acquisition of real estate at the earliest practicable date
and authorized to complete the same in accordance with the
terms hereof and to do all things necessary or requisite
thereto.
July,1975.
PASSED AND APPROVED IN OPEN COUNCIL on this the 29th day of
DeSHAW, City Secretary
VED AS TO FO :
RTIN D. COLLEY,
City Attorney
THE CITY OF HUNTSVILLE, TEXAS
BY 1%%1 / t.fr,S 7' �l l/ Z4Z4r
MORRIS I. WALLER, MAYOR