ORD CC 1980-62 - Certificate of Obligation - $34295.50• •
ORDINANCE NO. 80-62
AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY OF 8U0TSVIILE
PUBLIC WORKS CONSTRUCTION CERTIFICATE OF OBLIGATION IN THE
AMOUNT OF¢34,295.50/AND CONTAINING OTHER PROVISIONS RELATED
TO THE SUBJECT.
WHEREAS, the City Council of the City of Huntsville received competitive bids
for the expansion of the office building at the City Service Center 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 expansion of the office building at the City
Service Center at an amount not to exceed $40,000/ and
WHEREAS, the notice of intention to issue Certificates of Obligation was pub-
lished at the time and in the manner required by Texas Revised Civil
Statute Article 2369a.1 on June 19, 1980, and June 26, 1980/
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF 8OYTSVIrz,C/ TEXAS:
Section 1: The City Council ratifies the contract to construct the expansion
of the office building at the City Service Center and hereby confirms the
contract to construct said building.
Section 2: A single series interest bearing Certificate of Obligation of the
City of Huntsville, Teoas, 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¢34,295'50for the purpose of paying
for the construction of the expansion of the office building at the City
Service Center for use by the City, 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 3: The Certificate shall be dated November 19, 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: November 19, 1980 Amount: $34,295,50
Issued: November 19, 2980 Register No. 81-2
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 indi-
cated the total sum of
THIRTY-FOUR THOUSAND TWO HlNDRDU:0I0ETY-FTVE AND 50/100'Ix3LIARS
($34'395.50) in lawful money of the United States of America, with interest
thereon from date of issue until paid at the rate of 9.55 per cent per annum,
payable on November 19, 1981, and annually thereafter on the 19tb day of
November 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
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charges to the registered owner hereof, with such payments to be due on the
1981 dates and in the amounts as follows:
DATE PRINCIPAL
1982
1983
1984
1985
1986
1987
1988
1989
1990
$ 3,429.55
$ 3,429.55
$ 3,429.55
$ 3,429.55
$ 3,429.55
$ 3,429.55
$ 3,429.55
$ 3,429.55
$ 3,429.55
$ 3,429.55
$34,295.50
INTEREST TOTAL
$ 3,275.22 $ 6,704.77
$ 2,947.70 $ 6,377.25
$ 2,620,I8 $ 6,049,73
$ 2,292.65 $ 5,722.20
$ 1,965,13 $ 5,394.68
$ 1,637^61 $ 5,067,16
$ 1,310.09 $ 4,739.64
$ 982.57 $ 4,412.12
$ 655.04 $ 4'084.59
$ 327.52 $ 3,757,07
$18,013.71 ¢52,309,21
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.
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 19th day of November, 1980.
ATTEST:
RUTH DE SHAW, City Secretary
FULL CONSIDERATION therefor being
of Obligation was delivered to GRISHAM
holder, on this date, to-wit: November
and assigned to FIRST NATIONAL BANK OF
MORRIS I. W&LLEB, Mayor
hereby acknowledged, this Certificate
CONSTRUCTION CO., INC., the original
19, 1980, and by it hereby transferred
HUNTSVILLE.
GRISHAM CONSTRUCTION CO., INC,
By
Section 4: While this 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
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the first year and to create a sinking fund with which to pay the prin-
cipal 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; 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 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 suf-
ficient 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 5: The Mayor and City Secretary are hereby empowered and directed to
proceed with the delivery of said Certificate of Obligation and the clos-
ing 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. 81 -1
$34,295.50 9.55 %
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 use the public 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.
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 and City Secretary.
INTRODUCED, READ AND APPROVED on first reading by unanimous vote of the City
Council of the City of Huntsville, Texas, on this the 18th day of November,
1980.
ATTEST:
DE SHAW, City Secretary
APPROVED AS TO FORM:
SCOTT BOUNDS, City Attorney
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MORRIS I. WAILER, Mayor
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