ORD CC 1980-24 - Certificate of Obligation - $60,000• •
ORDINANCE NO. 80 -24
AN ORDINANCE AUTHORIZING ISSUANCE OF A SERIES OF CITY OF
HUNTSVILLE PUBLIC WORKS CERTIFICATES OF OBLIGATION, IN
THE AMOUNT OF $60,000.00; AND CONTAINING OTHER PROVISIONS
RELATED TO THE SUBJECT.
WHEREAS, the City Council of the City of Huntsville, Texas, has heretofore
purchased land for police and municipal court building purposes for
the City; and
WHEREAS, the City Council finds it necessary to employ, and has employed,
an architect to supervise the remodeling of 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 archi-
tectural services forthg.remodeling of the police and municipal courts
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 the architect for said building remodeling.
Section 2: The City's negotiable certificates of obligation, to be designated
as City of Huntsville, Texas, Police and Municipal Court - Architect
Certificates of Obligation, Series 1980 (hereinafter called Certificates)
are hereby authorized to be issued and delivered in the principal amount
of $6Q,.ODQ for the purpose of evidencing the indebtedness of the City
for all or any part of the cost of architectural services for the remodel-
ing of the Police and Municipal Courts Building.
Section 3: The Certificates shall be dated July 9, 1980, shall be numbered
consecutively from 1 through 60, shall be in the denomination of $1,000
each and shall mature serially on July 9th of each of the years, and in
the amounts, respectively set forth in the following schedule:
YEAR AMOUNT
1981
1982
1983
1984
$15,000
$15,000
$15,000
$15,000
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
delivery shown on the face of each Certificate at a rate per annum not
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in excess of that prescribed by Article 717K -2, Texas Revised Civil
Statute, as amended, interest payable on July 9th, 1981, and annually
thereafter on July 9th of each year until maturity or redemption.
Section 5: The Certificates shall be registered as hereinafter set forth,
and shall be in the following basic form, to -wit:
NO.
July 9, 1980
FORM OF CERTIFICATE
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF WALKER
CITY OF HUNTSVILLE, TEXAS
POLICE AND MUNICIPAL COURT - ARCHITECT
CERTIFICATE OF OBLIGATION
SERIES 1980
$1,000.00
On July 9, 1981, 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
ONE THOUSAND DOLLARS
and to pay interest thereon, from the initial date of delivery
shown on the face hereof, at the rate of % per annum, payable
July 9, 1981, and annually thereafter on the 9th day of each and
every year while this Certificate is outstanding. 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,
dates July 9, 1980, numbered consecutively from 1 through 60, in
the denomination of $1,000 each, aggregating $60,000, 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 $60,000 for the cost
of architectural services incurred in connection with the remodel-
ing of the Police and Municipal Court Building of the City.
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.
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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
accordance with law; that annual ad valorem taxes sufficient to pro-
vide 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 nad have been pledged for such payment within
the limits prescribed by law; that this Certificate shall be a debt
of the City within the meaning 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 Pro tem and attested to by the City Secretary,
the date of this Certificate of Obligation being the 9th day of
July, 1980, Certificate No.
ATTEST: E. Larry Dickens, Mayor Pro tem
Ruth DeShaw, City Secretary
FULL CONSIDERATION therefor being hereby acknowledged, this Certificate
of Obligation was delivered to KOETTER, THARP, COWELL & BARTLETT,
Architects, the original holder, on this date, to -wit:
and by it hereby transferred and assigned to
for KOETTER, THARP, COWELL & BARTLETT
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 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;
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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 suffi-
cient 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 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 Certificates 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
Certificates, and any amount in excess of the principal amount of
Certificates 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
Certificates 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 thepubli•c, works: herein con-
templated 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.
PASSED AND APPROVED on first reading by unanimous vote of the City Council
of the City of Huntsville, Texas, on this the 8th day of July, 1980.
Air
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•"F' DeS aw, ity Se r tary
APP
Scott Bounds, City Attorney
Ct 0
E. Larry ickep ' Mayor Pro tem