ORD CC 1980-15 - Certificate of Obligation - $16,730ORDINANCE NO. 80 -15
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,
TEXAS, AMENDING ORDINANCE NO. 80 -14, HERETOFORE PASSED BY
THE CITY COUNCIL OF HUNTSVILLE, TEXAS, AUTHORIZING THE
ISSUANCE OF A "CITY OF HUNTSVILLE, TEXAS, EQUIPMENT
ACQUISITION CERTIFICATE OF OBLIGATION," IN THE MAXIMUM
AMOUNT OF $16,730.00, PRESCRIBING THE FORM OF SAID
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 29th day of April, 1980,
City Council did adopt an ordinance authorizing the issuance
of a series of FOUR (4) City of Huntsville Texas, Equipment
Acquisition Certificates of Obligation; and
WHEREAS, City Council desires to correct certain
deficiencies in said ordinance relating to the recitals of
notice dates and maturity dates; and
WHEREAS, the City Council has 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 an interest bearing ertificate of Obligation of the City,
amount not to exceed $16,730.00 for such purposes upon terms
approved by the City Council.
WHEREAS, it appears to the City Council that all
prerequisites to the valid authorization of the intended
Certificate of Obligation for its stated purposes, have
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;
WHEREAS, at this time, City Council desires to amend
the ordinance to authorize the issuance and delivery of the
Certificate of Obligation in the amount of $16,730.00.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF HUNTSVILLE, TEXAS:
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Section 1. That an interest bearing Certificate 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
sum not to exceed $16,730.00 shall be, and the same is
hereby, authorized to be issued and the same is hereby
issued, to -wit: the acquisition of a tandem axle trailer
for use by the City of Huntsville, and the Mayor and City
Secretary shall have joint control of such Certificate
for the purpose of delivering same to the owners in accor-
dance herewith.
Section 2. That said Certificate shall be dated and
shall bear interest as hereinafter set forth, shall be
registered as hereinafter set forth, and shall be in the
following basic form, to -wit:
Date: May 28, 1980 Amount: $16,730.00
ISSUED: May 28, 1980 Register No. 80 -2
UNITED STATES
STATE OF
COUNTY OF
CITY OF HUNTSVILLE, TEXAS,
CERTIFICATE OF
OF AMERICA
TEXAS
WALKER
EQUIPMENT ACQUISITION
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
SIXTEEN THOUSAND SEVEN HUNDRED THIRTY AND No /100
DOLLARS
($16,730.00), in lawful money of the United States of America,
with interest thereon from date of issue until paid at the
rate of 9.1 per cent per annum, payable on May 28, 1980 and
annually thereafter on the 28th 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:
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DATE PRINCIPAL INTEREST TOTALS
1981 $3,346.00 $1,522.43 $4,868.43
1982 3,346.00 1,217.94 4,563.94
1983 3,346.00 913.45 4,259.45
1984 3,346.00 608.96 3,954.96
1985 3,346.00 304.49 3,650.49
$16,730.00 $4,567.27 $21,297.27
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 without 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, 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 indebted-
ness of the City of Huntsville, including this Certificate
of Obligation, does not exceed any constitutional or statu-
tory 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 28th day of May, 1980.
ATTEST:
RUTH DeSHAW, CITY SECRETARY
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MORRIS I. WALLER, Mayor
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
Section 3. While said Certificate of Obligation or
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 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 col-
lected 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 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.
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•
Section 5. The interest rate for the Certificate of
Obligation hereinabove authorized shall be as follows:
Certificate Register No. 80 -2 $16,730.00 9.1%
At the time said Certificate of Obligation is issued such
Certificate shall be registered and recorded by such regi-
ster 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 Co cil of the C'ty of Huntsville, Texas, on
this the 2 '#jday of t tai, �� , 1980.
ATTEST:
APPROVED AS TO FORM:
Scott Rounds
City Attorney
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MORRIS I. WALLER, Mayor