ORD CC 1980-78 - Certificate of Obligation - Cab chassisORDINANCE NO. 80 -78
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,
TEXAS, AUTHORIZING THE ISSUANCE OF A SERIES OF TWO "CITY OF
HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION CERTIFICATES OF
OBLIGATION," FOR FRONT LOADING REFUSE TRUCK - CAB CHASSIS
AND PACKER BODY IN THE AMOUNTS OF $39,326.34 AND $28,091.80;
AND CONTAINING OTHER PROVISIONS RELATED THERETO.
WHEREAS, the City Council of the City of Huntsville received competitive bids
for front loading refuse truck - cab chassis and packer body and awarded
contracts for the purchase of such equipment in accordance with Texas
Revised Civil Statutes Article 2368a.1; and
WHEREAS, the City authorized the publication of 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 purchase of a front loading refuse truck - cab chassis and packer
body at an amount not to exceed $80,000.00; and
WHEREAS, the notice of intention to issue Certificates of Obligation was pub-
lished at the times and in the manner required by Texas Revised Civil
Statutes Article 2368a.1; therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS:
Section 1: The City Council ratifies the contracts to purchase a front loading
refuse truck - cab chassis and packer body and hereby confirms the purchase
of such equipment as follows:
Moore Henry Motors, Inc.
Davis Truck & Equipment Co.
$39,326.34
$28,091.80
Section 2: A series of two interest bearing Certificates of Obligation of
the City of Huntsville, Texas, to be known and designated as "City of
Huntsville, Texas, Equipment Acquisition Certificates of Obligation"
are hereby authorized to be issued and delivered in the principal amounts
of $39,326.34 and $28,091.80 for the purpose of acquiring front loading
refuse truck - cab chassis and packer body, respectively, for use by
the City, and the Mayor and City Secretary shall have joint control of
such certificates for the purpose of delivering same to the owners in
accordance herewith.
Section 3: The Certificates shall be dated December 17, 1980, shall mature
and be payable in four (4) equal installments (subject to the City's
option of prior payment), and shall be registered as hereinafter set
forth, and shall be in the following basic form, to -wit:
Date:
December 17, 1980 Amount: $
Issued: Register No. 81-
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF WALKER
CITY OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION
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
($ ) 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 (Date of Delivery) and annually thereafter on the day of
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
1983
1984
1985
PRINCIPAL
INTEREST TOTAL
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 pen-
alty 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 day of , 1980.
MORRIS I. WALLER, Mayor
1982 ATTEST:
RUTH DE SHAW, City Secretary
FULL CONSIDERATION therefor being hereby acknowledged, this Certificate
of Obligation was delivered to (Contractor) , the original holder, on
this date, to-wit: (date of initial delivery), and by it hereby transferred
and assigned to (Bank)
(Contractor)
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%, 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
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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 suffic-
ient 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 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 Certificates of Obligation shall bear interest from the date
of initial delivery shown on the face of each Certificate at a rate per
annum not in excess of that prescribed by Article 717k-2, Texas Revised
Civil Statutes, as ameuded.
At the time said Certificates of Obligation are issued, such Certificates
shall be registered and recorded by such register numbers on the books
of said City to the registered owner tbereof.
Section 7: 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 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 ordaiued.
Section 8: Notwithstanding any other provisions in the within ordinance to
the contrary as to the authorized issuing date for such Certificates of
Obligation, such Certificates shall be dated and bear interest from date
of delivery and execution by the Mayor and City Senretary,
INTRODUCED, READ AND APPROVED by unanimous vote of the City Council of
the City of Huntsville, Texas, on this the 16th day of December, 1980.
ATTEST:
RUTH DE SHAW, City Secretary
APPROVED:
SCOTT BOUNDS, City Attorney
MORRIS I. WALLER, Mayor