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ORD CC 1980-26 - Certificate of Obligation - $22000• ORDINANCE NO. 80 -26 AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY OF HUNTSVILLE PUBLIC WORKS CONSTRUCTION CERTIFICATE OF OBLIGATION IN THE AMOUNT OF $22,000, AND CONTAINING OTHER PROVISIONS RELATED TO THE SUBJECT. WHEREAS, the City Council of the City of Huntsville received competitive bids for warehouse expansion project and awarded a contract for said public works construction in accordance with Texas Revised Civil Statute article 2368a.1; and WHEREAS, the City authorized the publication of a notice of intention to issue Certificates of Obligation, payable from City ad valorem taxes, for the purpose of evidencing the indebtedness of the City for all or part of the construction of the warehouse expansion at an amount not to exceed $22,000; and WHEREAS, the notice of intention to issue Certificates of Obligation was published at the time and in the manner required by Texas Revised Civil Statute article 2368a.1 on June 19, 1980, and June 26, 1980; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS: Section 1: The City Council ratifies the contract to construct the warehouse expansion and hereby confirms the contract to construct said building. Section 2: A single series interest bearing Certificate of Obligation of the City of Huntsville, Texas, to be known and designated as "City of Huntsville Public Works Certificate of Obligation" is hereby authorized to be issued and delivered in the principal amount of $22,000 for the purpose of paying for the construction of the warehouse expansion for use by the City, and the Mayor Pro tem and City Secretary shall have joint control of such Certificate for the purpose of delivering same to the owners in accordance herewith. Section 3: The Certificate shall be dated July 9, 1980, shall mature and be payable in ten (10) equal installments (subject to the City's option of prior payment), shall be registered as hereinafter set forth, and shall be in the following basic form, to -wit: Date: July 9, 1980 Issued: July 9, 1980 Amount: $22,000.00 Register No. 80- UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF WALKER CITY OF HUNTSVILLE, TEXAS, PUBLIC' WORKS CERTIFICATE OF 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 TWENTY -TWO THOUSAND AND NO /100 DOLLARS ($22,000.00) in lawful money of the United States of America, with interest thereon from date of issue until paid at the rate of per cent per annum, payable on July 9, 1981, and annually thereafter on the 9th day of July 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 collec- tion charges to the registered owner hereof, with such payments to be due on the dates and in the amounts as follows: DATE PRINCIPAL INTEREST TOTAL 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 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 prin- cipal 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. -2- • • IN TESTIMONY WHREEOF, 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 Certi- ficate of Obligation being the 9th day of July, 1980. E. Larry Dickens, Mayor Pro tem ATTEST: Ruth DeShaw, City Secretary 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 4: 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 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 cur- rent year and the same shall be assessed and collected and applied to the purposes named; and while said Certificate of Obligation is outstand- ing 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. -3- • • Section 5: The Mayor Pro tem 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. Section 6: The interest rate for the Certificate of Obligation hereinabove authorized shall be as follows: Certificate Register No. 80- $22,000.00 At the time said Certificate of Obligation is issued such Certificate shall be registered and recorded by such register number on the books of said City to the registered owner thereof. Section 7: 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 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 8: 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 Pro tem and City Secretary. PASSED AND APPROVED on first reading by unanimous vote of the City Cquncil of the City of Huntsville, Texas, on this the 8th day of July, 1980. f E. Larry Diclyef}a', Mayor Pro tem �i. -taiga 1 !Add �e i y Secretary APPROVED AS TO FORM: S641 Scott Bounds, City Attorney -4-