ORD CC 1980-17 - Certificate of Obligation - $16141.55ORDINANCE NO. 80-17
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 $16,141.55, 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 Certifi-
cates 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
Certificate of Obligation of the City, amount not to exceed
$16,141.55 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 author-
izing the issuance of said Certificate 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 $16,141.55.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF HUNTSVILLE, TEXAS:
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 $16,141.55 shall be, and the same
is hereby, authorized to be issued and the same is hereby issued,
to -wit: the acquisition of Mack Truck rigging 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 accordance herewith.
Section 2. That said Certificate shall be dated and shall
bear interest as hereinafter set forth, shall be registered as here-
inafter set forth, and shall be in the following basic form, to -wit:
Date: June 18, 1980 Amount: $16,141.55
ISSUED: June 18, 1980
UNITED STATES
STATE OF
COUNTY OF
CITY OF HUNTSVILLE, TEXAS,
CERTIFICATE OF
Register No. 80 -3
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 install-
ments and on the dates as below indicated the total sum of
SIXTEEN THOUSAND ONE HUNDRED FORTY -ONE AND 55/100 DOLLARS
($16,141.55), in lawful money of the United States of America,
with interest thereon from date of issue until paid at the rate
of 8.0 per cent per annum, payable on June 18, 1981 and annually
thereafter on the 18th of June 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 TOTAL
1981 $ 3,228.31 $1,291.32 $ 4,519.63
1982 3,228.31 1,033.06 4,261.37
1983 3,228.31 774.79 4,003.10
1984 3,228.31 516.53 3,744.84
1985 3,228.31 258.26 3,486.57
$16,141.55 $3,873.96 $20,015.51
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, condi-
tions 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 re-
quired 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 18th day of June, 1980.
ATTEST:
RUTH DeSHAW, City Secretary
MORRIS I. WALLER, Mayor
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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 install-
ment 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 be-
comes 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 allow-
ance 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 pay-
ment 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 ac-
cordance with the terms hereof and to do all things necessary or
prerequisite thereto.
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•
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Section 5. The interest rate for the Certificate of
Obligation hereinabove authorized shall be as follows:
Certificate Register No. 80 -3 $16,141.55 8.0 %
At the time said Certificate of Obligation is issued such Certi-
ficate 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 r
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
//tA day of c7cmne. , 1980.
4111r-Alv
i
'UT R'eSHAW, ity ecretary
1''
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APPROVED AS TO FORM:
dtQV
OTT BOUNDS, City Attorney
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