ORD CC 1980-31 - Certificate of Obligation - $300000• ..
ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF
$300,000 CERTIFICATES OF OBLIGATION
WHEREAS, the City Council of the City of Huntsville,
Texas, by ordinance adopted July 17, 1980, found that it was
necessary and desirable for said City to construct public works
and purchase equipment for said City, including the payment of
contractual obligations for professional services in con-
nection therewith, to -wit: constructing and equipping a jail
for said City, and that certificates of obligation be issued by
the City for all or any part of the cost of same; and
WHEREAS, said Council thereafter gave due and proper
notice of its intention to issue such certificates of obli-
gation; and
WHEREAS, there has not been filed with the City Secretary
a petition protesting the issuance of such certificates and re-
questing an election on same; and
WHEREAS, it is affirmatively found that the City Council
is authorized to proceed with the issuance and sale of said
certificates in accordance with the terms of this ordinance;
Now, Therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE:
Section 1. That the facts and recitations contained in
the preamble of this ordinance are hereby found and declared to
be true and correct.
Section 2. •That for the purpose of evidencing the
indebtedness of said City for all or any part of the cost of
constructing public works and purchasing equipment for said
City, including the payment of contractual obligations for
professional services in connection therewith, to -wit: con-
structing and equipping a jail for said City, there shall be
issued the negotiable, serial certificates of obligation of
said City in the principal amount of $300,000, to be known and
designated as "CITY OF HUNTSVILLE, TEXAS, JAIL CERTIFICATES OF
OBLIGATION, SERIES 1980," in strict conformity with the
Constitution and laws of the State of Texas, particularly
Article 2368a.1, V.T.C.S., as amended.
Section 3. That said certificates shall be dated
October 1, 1980, shall be numbered consecutively from 1
through 60, shall be in the denomination of $5,000 each, and
shall mature serially on October 1, without option of prior
redemption, in each of the years, and in the amounts
respectively, all as set forth in the following schedule:
$15,000 1982/1984
30,000 1985/1988
45,000 1989/1991
Section 4. That the certificates shall bear interest at
the rate of �� /� % per annum, interest payable on the dates
indicated in the FORM OF CERTIFICATE set forth in this
ordinance.
Section 5. That tie certificates shall be payable, and
shall have the characteristics, and shall be signed and
executed (and the certificates shall be sealed), all as
provided and in the manner indicated in the FORM OF CERTIFICATE
set forth in this ordinance.
•
Section 6. That the form of certificates, including the
Form of Interest Coupons and the Comptroller's Registration
Certificate, shall be, respectively, substantially as follows:
FORM OF CERTIFICATE:
No. $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF WALKER
CITY OF HUNTSVILLE, TEXAS
JAIL CERTIFICATE OF OBLIGATION
SERIES 1980
THE CITY OF HUNTSVILLE, in the County of Walker, State of
Texas, FOR VALUE RECEIVED, acknowledges itself indebted to and
promises to pay the bearer on the 1st day of October, 19_, the
sum of
FIVE THOUSAND DOLLARS •
and to pay interest thereon from the date hereof at the rate of
% per annum, interest payable April 1, 1981, and
semiannually thereafter on October 1 and April 1 of each year
while this certificate is outstanding. Both principal of and
interest on this certificate shall be payable in any coin,or
currency of the United States of America which, on the
respective dates of payment of such principal and interest, is
legal tender for the payment of debts due the United States of
America, at the First National Bank, Huntsville, Texas, or, at
the option of the bearer, at the
, which shall be the paying agents for
this series of certificates. The principal hereof shall be
payable only upon presentation and surrender of this
certificate, and interest hereon falling due on and prior to
the maturity of this certificate shall be payable only upon
presentation and surrender of the interest coupons attached as
such coupons severally become due.
THIS CERTIFICATE IS ONE OF A SERIES OF 60 NEGOTIABLE,
SERIAL CERTIFICATES OF OBLIGATION of like tenor and effect, ex-
cept as to number and maturity, numbered consecutively from 1
to 60, both inclusive, in the denomination of $5,000 each,
aggregating $300,004, and, together with the other
certificates of said issue, is issued for the purpose of
evidencing the indebtedness of said City for paying all or any
part of the cost of constructing public works and purchasing
equipment for said City, including the payment of contractual
obligations for professional services in connection therewith,
to-wit: constructing and equipping a jail for said City, under
and in strict conformity with the Constitution and laws of the
State of Texas, including particularly Article 2368a.1,
V.T.C.S. and pursuant to an ordinance ("Ordinance") passed by
the City Council of said City, which Ordinance is of record in
the official minutes of said City Council.
THE DATE OF THIS CERTIFICATE, in conformity with the Ordi-
nance above mentioned, is OCTOBER 1, 1980.
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
-2-
•
annual ad valorem taxes sufficent to provide 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 and have been pledged irrevocably 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; and that, when delivered,
this certificate shall be deemed and construed (i) to be a
"Security" within the meaning of Chapter 8, Investment
Securities, Uniform Commercial Code (Chapter 785, Acts of the
60th Legislature, Regular Session, 1967), and (ii) to be a
general obligation of the City within the meaning of Chapter
784, Acts of the 61st Legislature of Texas, Regular Session,
1969.
IN WITNESS WHEREOF, the City Council of the City of
Huntsville, Texas, has caused the official seal of said City to
be impressed, or placed in facsimile hereon, this certificate
and the interest coupons appertaining hereto to be signed with
the facsimile signature or subscription of the Mayor and
countersigned with the facsimile signature or'subscription of
the City Secretary.
XXXXXXXXXX
COUNTERSIGNED:
XXXXXXXXXX
City Secretary
City of Huntsville, Texas
(SEAL)
No.
Mayor
City of Huntsville, Texas
FORM OF INTEREST COUPONS:
ON 1, 19 ,
the City of Huntsville, in the County of Walker, in the State of
Texas, hereby promises to pay to bearer, without exchange or
collection charges, the amount shown on this interest coupon,
in any coin or currency which, on such date is legal tender for
the payment of debts due the United States of America, upon
presentation and 'surrender of this interest coupon, at the
First National Bank, Huntsville, Texas, or, at the option of
the bearer, at the
being interest due that date on the certificate, bearing the
number hereinafter designated, of that issue of City of
Huntsville, Texas, Jail Certificates of Obligation, Series
1980, dated October 1, 1980.
Certificate No.
xxxxxxxxxx
Mayor
xxxxxxxxxx
City Secretary
FORM OF REGISTRATION CERTIFICATE:
COMPTROLLER' S REGISTRATION CERTIFICATE§ REGISTER NO.
I HEREBY CERTIFY that this certificate has been examined,
certified as to validity, and approved by the Attorney General
of the State of Texas and that this certificate has been
-3-
•
registered by the Comptroller of Public Accounts of the State
of Texas.
WITNESS my signature and seal this
(SEAL)
xxxxxxxxxx
Comptroller of Public Accounts
of the State of Texas
Section 7. That there is hereby created a special fund to
be designated "City of Huntsville, Texas, Jail Certificates of
Obligation, Series 1980, Interest and Sinking Fund," and all
taxes collected for and on account of said certificates shall
be deposited, as collected, to the credit of the Interest and
Sinking Fund. During each year while any of said certificates
are outstanding and unpaid, the City Council of the City shall
compute and ascertain a rate and amount of ad valorem tax which
will be sufficient to raise and produce the money required to
pay the interest on said certificates as such interest comes
due and to provide and maintain a sinking fund of not less than
2% of the principal amount of said certificates or not less
than the amount required to pay the principal out of said tax,
whichever is greater; and said tax shall be based on the latest
approved tax rolls of the City, with full allowance being made
for tax delinquencies and the cost of tax collection. Said
rate and amount of ad valorem tax are hereby levied, and are
hereby ordered to be levied, against all taxable property in
the City for each year while any of said certificates are
outstanding and unpaid; and said tax shall be assessed and
collected each such year and deposited to the credit of the
aforesaid Interest and Sinking Fund. Said ad valorem taxes
sufficient to provide for the payment of the interest on and
principal of said certificates, as such interest comes due and
such principal matures, are hereby pledged irrevocably for
such payment within the limits prescribed by law.
Section 8. That the City Council certifies that based
upon all facts and estimates now known or reasonably expected
to be in existence on the date the certificates are delivered
and paid for, the City Council reasonably expects that the
proceeds of the certificates will not be used in a manner that
would cause the certificates or any portion of the certificates
to be an "arbitrage certificate" under Section 103(c)(2) of the
Internal Revenue Code of 1954, as amended, and the regulations
prescribed thereunder. Furthermore, all officers, employees
and agents of the City are authorized and directed to provide
certifications of facts and estimates that are material to the
reasonable expectations of the City Council as of the date the
certificates are delivered and paid for. In particular, all or
any officers of the City are authorized to certify for the City...
Council the facts and circumstances and reasonable
expectations of the City Council on the date the certificates
are delivered and paid for regarding the amount and use of the
proceeds of the certificates. Moreover, the City Council
covenants that it shall make such use of the proceeds of the
certificates, regulate investments of proceeds of the
certificates and take such other and further actions as may be
required so that the certificates shall not be "arbitrage
certificates" under Section 103(c)(2) of the Internal Revenue
Code of 1954, as amended, and the regulations prescribed from
time to time thereunder.
Section 9. That .41e Mayor is hereby authorized to have
control of the certificates and all necessary records and pro-
ceedings pertaining to the certificates pending their delivery
and their investigation, examination and approval by the
Attorney General of the State of Texas, and their registration
by the Comptroller of Public Accounts of the State of Texas.
-4-
•
Attorney General of the State of Texas, and their registration
by the Comptroller of Public Accounts of the State of Texas.
Section 10. That the sale of said certificates to
t■-7FeThi tisToN w roue*, 4- GO/7PP y
at a price equal to he principal amount thereo , pus accrued
interest thereon from the date thereof to the date of actual
delivery, subject to the approving opinions, as to the legality
of such certificates, of the Attorney General of the State of
Texas and Vinson & Elkins, market attorneys, is hereby
authorized, approved, ratified and confirmed. When said
certificates have been approved by the Attorney General of
Texas and registered by the Comptroller of Public Accounts of
Texas, they shall be delivered to the purchasers thereof upon
receipt of the full purchase price. The Mayor and City
Secretary are authorized and directed to do any and all things
necessary and/or convenient to carry out the terms of this
ordinance.
Section 11. That this ordinance shall take effect from
and after its adoption, AND IT IS SO ORDAINED.
PASSED AND APPROVED this 12th day of August, 1980.
CITY OF HUNTSVILLE, TEXAS
APPROVED:
SGAW
City Attorney
CITY OF HUNTSVILLE, TEXAS
(SEAL)
Mayor
CITY OF HUNTSVILLE, TEXAS
-5-