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8-18-2020 packetDaiquiri Beebe, Ward 1 Russell Humphrey, Ward 2 Blake Irving, Ward 3 Mayor Pro Tem Joe P. Rodriquez, Ward 4 CITY OF HUNTSVILLE, TEXAS Andy Brauninger, Mayor Bert Lyle, Position 1 At-Large Dee Howard Mullins, Position 2 At-Large Clyde D. Loll, Position 3 At-Large Mari Montgomery, Position 4 At-Large HUNTSVILLE CITY COUNCIL AGENDA TUESDAY, AUGUST 18, 2020 WORKSHOP 5:00 P.M. | REGULAR SESSION 6:00 P.M. IN CITY COUNCIL CHAMBERS, HUNTSVILLE CITY HALL, 1212 AVENUE M, HUNTSVILLE, TEXAS 77340 City hall will implement 6-foot social distancing for those in attendance. The City reserves the right to take temperatures of those wanting to attend and requires attendees to wear face masks. The City reserves the right to deny access to the meeting because of the above requirements for the safety of its citizens. For those who cannot attend because of the social distancing requirements or for the reasons listed above, the meeting will be broadcast live on the City website at www.HuntsvilleTX.gov/Meetings or on Facebook. The meeting will be recorded, and such recordings will be made available on the City website at www.HuntsvilleTX.gov. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact the City Secretary’s office (936.291.5413), two working days prior to the meeting for appropriate arrangements. WORKSHOP [5:00 P.M.] – The Council will hear a presentation on Health Insurance and Bond Proposition 2 updates. MAIN SESSION [6:00 P.M.] CALL TO ORDER INVOCATION AND PLEDGES – U.S. Flag and Texas Flag PROCLAMATION – 100th anniversary of 19th Amendment PRESENTATION – Budget update 1. CONSENT AGENDA Public comments will be called for by the presiding officer before action is taken on these items. (Approval of Consent Agenda authorizes the City Manager to implement each item in accordance with staff recommendations. An item may be removed from the Consent Agenda and added to the Statutory Agenda for full discussion by request of a member of Council.) a. Approve the minutes of the City Council meeting held on August 4, 2020. [Brenda Poe, City Secretary] b. Consider adopting Resolution 2020-26 naming the Designated Authorized Signatories, Civil Rights Officer, Labor Standards Officer, and Section 3 Coordinator for the 2020 Texas Community Development Block Grant – Disaster Recovery (CDBG-DR) project under Contract Award #20-065-128-C439, from the Texas General Land Office (GLO). [Kristie Hadnot, Grants Manager] c. Consider adopting Resolution 2020-27 to update and reaffirm various required Civil Rights Policies, as required for program compliance to administer the 2020 Texas Community Development Block Grant – Disaster Recovery (CDBG-DR) under Contract Award #20-065-128-C439, from the Texas General Land Office (GLO). [Kristie Hadnot, Grants Manager] d. Consider adoption of Ordinance 2020-40 to amend the budget for FY 19-20 and/or CIP Project budgets. [Steve Ritter, Finance Director] 2. STATUTORY AGENDA a. Consider adopting Ordinance 2020-38 authorizing the issuance of City of Huntsville, Texas general obligation bonds, Series 2020; authorizing the levy of an ad valorem tax in support of the bonds; approving an official statement, a paying agent/registrar agreement and other related documents; awarding the sale of the bonds and authorizing other matters relating to the bonds. [Steve Ritter, Finance Director] b. Consider adopting Ordinance 2020-39 authorizing the issuance of City of Huntsville, Texas Certificates of Obligation, Series 2020; authorizing the levy of an ad valorem tax in support of the Certificates; approving an official statement, a paying agent/registrar agreement and other related documents; awarding the sale of the Certificates and authorizing other matters relating to the Certificates. [Steve Ritter, Finance Director] 3. REQUESTS FOR CITIZEN PARTICIPATION An opportunity for citizens to be heard on any topic and for the City Council to participate in the discussion. No action will be taken. None submitted. 4. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA 5. ITEMS OF COMMUNITY INTEREST (Hear announcements concerning items of community interest from the Mayor, Councilmembers, and City staff, for which no action will be discussed or taken.) 6. EXECUTIVE SESSION a. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, 551.071 – consultation with counsel on legal matters regarding Raven’s Nest Golf Course. b. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, 551.072 – deliberation regarding purchase, exchange, lease or value of real property on Martin Luther King Drive. 7. RECONVENE Take action on items discussed in executive session, if needed. ADJOURNMENT *If, during the course of the meeting and discussion of any items covered by this notice, City Council determines that a Closed or Executive session of the Council is required, then such closed meeting will be held as authorized by Texas Government Code, Chapter 551, Section 551.071 – consultation with counsel on legal matters; 551.072 – deliberation regarding purchase, exchange, lease or value of real property; 551.073 – deliberation regarding a prospective gift; 551.074 – personnel matters regarding the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee; 551.076 – implementation of security personnel or devices; 551.087 – deliberation regarding economic development negotiation; Sec. 551.089 - deliberation regarding security devices or security audits; and/or other matters as authorized under the Texas Government Code. If a Closed or Executive session is held in accordance with the Texas Government Code as set out above, the City Council will reconvene in Open Session to take action, if necessary, on the items addressed during Executive Session. CERTIFICATE I, Brenda Poe, City Secretary, do hereby certify that a copy of the August 18, 2020 City Council agenda was posted on the City Hall bulletin board, a place convenient and readily accessible to the general public at all times, and to the City’s website, www.HuntsvilleTX.gov, in compliance with Chapter 551, Texas Government Code. DATE OF POSTING: 8/13/2020 TIME OF POSTING: 1:25 p.m. ____________________________ TAKEN DOWN: Brenda Poe, City Secretary Brenda Poe MINUTES FROM THE HUNTSVILLE CITY COUNCIL REGULAR MEETING HELD ON THE 4th DAY OF AUGUST 2020, IN THE CITY HALL, LOCATED AT 1212 AVENUE M, IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS, AT 6:00 P.M. The Council met in a regular session with the following: COUNCILMEMBERS PRESENT: Daiquiri Beebe, Blake Irving, Russell Humphrey, Dee Howard Mullins, Bert Lyle, Joe P. Rodriquez, Andy Brauninger, Clyde D. Loll, Mari Montgomery COUNCILMEMBERS ABSENT: None OFFICERS PRESENT: Brenda Poe, City Secretary; Leonard Schneider, City Attorney MAIN SESSION [6:00 P.M.] CALL TO ORDER – Mayor Brauninger called the meeting to order at 6:00 p.m. INVOCATION AND PLEDGES U.S. Flag and Texas Flag: Honor the Texas Flag. I pledge allegiance to thee, Texas, one state, under God, one, and indivisible. Councilmember Clyde Loll gave the invocation and Mayor Brauninger led the pledges. PROCLAMATION – Mayor Brauninger presented a proclamation to CommUNITY ALLiance for Huntsville in support of a day of prayer for Huntsville ISD. 1. PUBLIC HEARING a. Public hearing to hear comments on the City’s intent to submit a grant application to the U.S. Department of Justice for the FY 2020 Local Edward Byrne Memorial Justice Assistance Grant (JAG) Program. The public hearing was opened at 6:06 p.m. Grants Manager Kristie Hadnot presented a narrative on the program. The public hearing was closed at 6:13 p.m. b. Public hearing to hear comments on consideration of the Conditional Use Permit Application for a “Public Utility” service center to be located on property located at 1014 13th Street. The public hearing was opened at 6:13 p.m. Planner Leigha Larkins presented the history of the application. Jonathan Jonathon McClellan, AT&T Director External and Legislative Affairs, gave a presentation on behalf of AT&T. Citizen Thomas Leeper spoke in opposition of the permit. The public hearing was closed at 7:17 p.m. 2. CONSENT AGENDA Public Comments will be called for by the presiding officer before action is taken on these items. (Approval of Consent Agenda authorizes the City Manager to implement each item in accordance with staff recommendations. An item may be removed from the Consent Agenda and added to the Statutory Agenda for full discussion by request of a member of Council.) a. Approve the minutes of the City Council meeting held on July 21, 2020. [Brenda Poe, City Secretary] b. Consider authorizing the City Manager to apply for the U.S. Department of Justice – 2020 Local Edward Byrne Memorial Justice Assistance Grant (JAG) Program, enter in to an Interlocal Agreement with Walker County and adopt Resolution 2020-25 in support of the same. [Kristie Hadnot, Grants Manager] Mayor Pro Tem Rodriquez made a motion to approve the consent agenda; the motion was seconded by Councilmember Howard. The motion was adopted, 9-0. 3. CITY COUNICL/CITY MANAGER/CITY ATTORNEY a. SECOND READING - Consider adopting Ordinance 2020-35 amending the Huntsville Code of Ordinances, specifically Chapter 12, Buildings and Building Regulations to provide requirements for the control of surface water run-off, second reading. [Kevin Byal, Director of Development Services / Building Official] Mayor Pro Tem Rodriquez made a motion to approve Ordinance 2020-35 amending the Huntsville Code of Ordinances, specifically Chapter 12, Buildings and Building Regulations to provide requirements for the control of surface water run-off; the motion was seconded by Councilmember Montgomery. Charlie Corbell spoke in favor of the code change. The motion was adopted, 9-0. b. SECOND READING - Consider a request to change the name of Gospel Hill Road to William H. Jones, Sr. Road and adopt Ordinance Number 2020-34, second reading. [Leigha Larkins, Planner] Mayor Pro Tem Rodriquez made a motion to deny the request to change the name of Gospel Hill Road to William H. Jones, Sr. Road and deny the adoption of Ordinance 2020-34; the motion was seconded by Councilmember Howard. Blake Irving signed a conflict of interest on the item and left the chambers. Deborah Gilbert spoke against. Jasmine Williams spoke in favor. Brendon Kelly spoke against. Alice M Kelly spoke against. Patra Hayes spoke against. Milford Hawkins spoke against. Mary L Bradford spoke against. Janis Bradford spoke in favor as the petitioner. Roberta Williams spoke against. The motion to deny was adopted, 9-0. c. Consider approving the Conditional Use Permit Application for a “Public Utility” service center to be placed on property located at 1014 13th Street. [Leigha Larkins, Planner] Mayor Brauninger made a motion to postpone the agenda item until August 18, 2020; the motion was seconded by Councilmember Montgomery. The motion failed, 3-6, with Councilmembers Humphrey, Beebe, Rodriquez, Montgomery, Irving and Loll voting against. Mayor Pro Tem Rodriquez made a motion to approve the Conditional Use Permit Application #04-2019 allowing a Public Utility service center to be placed on property located at 1014 13th Street with conditions as recommended by the Planning Commission; Councilmember Montgomery seconded. Councilmember Montgomery amended the motion to include noise levels do not exceed current City Ordinance; the motion was seconded by Councilmember Humphrey. The motion to amend passed, 6-3, with Councilmembers Howard, Lyle and Loll voting against. The main motion passed, 5-4 with Councilmembers Howard, Lyle, Irving and Loll voting against. d. FIRST READING - Consider Ordinance 2020-36 for the dis-annexation of approximately 391.487 acres of land, situated in the Hillary M. Crabb League, Abstract No. 15, Walker County, Texas, and being all of Parcel 3, Parcel 15, Parcel 16 and Parcel 19 as further described in the attached exhibit A-2, first reading. Councilmember Beebe made a motion to suspend the two reading requirements of section 4.12 of the Charter and approve Ordinance 2020-36 for the dis-annexation of approximately 391.487 acres of land, situated in the Hillary M. Crabb League, Abstract No. 15, Walker County, Texas, and being all of Parcel 3, Parcel 15, Parcel 16 and Parcel 19 as further described in the attached exhibit A-2; the motion was seconded by Mayor Pro Tem Rodriquez. The motion was adopted, 9-0. e. Consider Resolution No. 2020-24 authorizing the City Manager and/or his designee to execute development agreements pursuant to Chapter 43 of the Local Government Code for the dis- annexation of approximately 391.487 acres of land situated in the Hillary M. Crabb League, Abstract No. 15, Walker County, Texas and approximately 266.94 acres of land situated in the Lewis Cox League, Abstract No. 13, Walker County, Texas. Councilmember Rodriquez made a motion to authorize the City Manager and/or his designee to execute development agreements pursuant to Chapter 43 of the Local Government Code for the dis-annexation of approximately 391.487 acres of land located in the Hillary M. Crabb League, Abstract No. 15, Walker County, Texas and approximately 266.94 acres of land situated in the Lewis Cox League, Abstract No. 13, Walker County, Texas; the motion was seconded by Councilmember Lyle. The motion was adopted, 9-0. f. FIRST READING - Consider authorizing the City Manager and/or his designee to enter in to an interlocal agreement for professional services with Walker County Hospital District to administer a COVID-19 Community Testing Program for residents of the City of Huntsville, first reading. [Tammy Gann, Director of Economic Development / Special Projects and Kristie Hadnot, Grants Manager] Councilmember Montgomery made a motion to suspend the two reading requirements of section 4.12 of the Charter; the motion was seconded by Councilmember Lyle. The motion passed, 9-0. Councilmember Montgomery made a motion to authorize the City Manager to enter into an interlocal agreement for professional services with Walker County Hospital District to administer a COVID-19 Community Testing Program for the residents of the City of Huntsville; the motion was seconded by Councilmember Howard. The motion was adopted, 9-0. g. Consider approval of announcing the City Council’s intention to adopt a maximum property tax rate of $0.3341 per $100 valuation for the City’s 2020 – 2021 Fiscal Year (Tax Year 2020). [Steve Ritter, Finance Director] Mayor Pro Tem Rodriquez made a motion to approve announcing the City Council’s intention to adopt a tax rate in compliance with the Texas State Truth and Taxation laws not to exceed $0.3341 per $100 valuation for the City’s 2020-2021 fiscal year tax year 2020; the motion was seconded by Councilmember Loll. The motion was adopted, 9-0 with a roll call vote. All members of the Council voted in favor. 4. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY a. Consider pay increase for City Council to $100 per meeting and approve Ordinance 2020-36 37 ordering a special election to amend the City Charter regarding councilmember pay. [Dee Howard, At-large Position 2 Councilmember] Councilmember Howard made a motion to approve a pay increase for City Council to $100 per meeting and approve Ordinance 2020-37 ordering a special election to amend the City Charter regarding councilmember pay; the motion was seconded by Councilmember Irving. The motion failed, 3-6 with Councilmember Humphrey, Beebe, Rodriquez, Lyle and Loll voting against. 5. REQUESTS FOR CITIZEN PARTICIPATION An opportunity for citizens to be heard on any topic and for the City Council to participate in the discussion. No action will be taken. a. Allan Rushing would like to speak about his experience with corrupt HPD officers. b. Armatus Reintegration Program would like to introduce themselves and their organization. Neither requestor was present. 6. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA None 7. ITEMS OF COMMUNITY INTEREST (Hear announcements concerning items of community interest from the Mayor, Councilmembers, and City staff, for which no action will be discussed or taken.) The Mayor announced the Walker County Office of Emergency Management is continuing to provide Mobile COVID-19 tests in August. The dates include Tuesdays, Aug. 11th, 18th, and 25th. The free tests are performed at the Walker County Fairgrounds. You do not have to be symptomatic to test. A valid ID is required at check-in. They will begin at 8 a.m. and end at 4 p.m. Please do your part #HomeSweetHuntsville to slow the spread of this virus. Montgomery made a statement about COVID-19 numbers in the City of Huntsville and how Huntsville ISD was moving forward. She also read a statement about Black Lives Matter. 8. EXECUTIVE SESSION a. City Council will meet in Executive Session pursuant to Texas Government Code Section 551.087 - deliberation regarding economic development negotiation, in reference to Project Lego. The Council convened into Executive Session at 8:49 p.m. 9. Reconvene The Council reconvened at 9:27 p.m. ADJOURNMENT Mayor Brauninger adjourned the meeting without objection at 9:27 p.m. Brenda Poe, City Secretary ATTEST: CITY OF HUNTSVILLE ________________________________ ________________________________ Brenda Poe, City Secretary Andy Brauninger, Mayor Agenda Item #1b Item/Subject: Consider adopting Resolution 2020-26 naming the Designated Authorized Signatories, Civil Rights Officer, Labor Standards Officer, and Section 3 Coordinator for the 2020 Texas Community Development Block Grant – Disaster Recovery (CDBG-DR) project under Contract Award #20-065-128- C439, from the Texas General Land Office (GLO). Initiating Department/Presenter: Finance Presenter: Kristie Hadnot, Grants Manager Recommended Motion: Move to adopt Resolution 2020-26 naming the Designated Authorized Signatories, Civil Rights Officer, Labor Standards Officer, and Section 3 Coordinator for the 2020 Texas Community Development Block Grant – Disaster Recovery (CDBG-DR) project under Contract Award #20-065-128-C439, from the Texas General Land Office (GLO). Strategic Initiative: Goal #4 - Infrastructure - Ensure the quality of the City utilities, transportation and physical structures so that the City’s core services can be provided in an effective and efficient manner. Discussion: The City was awarded a CDBG Disaster Recovery contract on July 1, 2020, from the Texas General Land Office for the 2020 Flood & Drainage Improvement and Street Improvement projects in the Elkins Lake Subdivision. The grant was awarded to the City in response to damages sustained from Hurricane Harvey. HUD provided the State of Texas with a $5.6 billion CDBG-DR allocation for Hurricane Harvey recovery. Out of the statewide allocation, the Houston-Galveston Area Council of Governments (HGAC) received over $240 million for regional distribution to various impacted cities and counties. As determined by HGAC’s Method of Distribution published on July 17, 2018, the City of Huntsville received a total fund allocation of $1,848,750 from the Infrastructure Program. The grant requires that the City Council designate signatories for different aspects of the grant management. As per the 2019 CDBG-DR Project Implementation Manual, “the program must fill out the Depository / Authorized Signatories Form to identify the persons responsible for both contractual documents (executed Subrecipient agreement, associated amendments, and various program certifications) and financial documents (requests for payment, issuance of check)...” On previous grant programs, the Mayor and City Manager have been charged with executing contractual documents, and Finance Staff and Grants Manager has been responsible for monitoring, initiating, and auditing the financial expenditures incurred from grant projects. For this particular grant, the Grant Manager recommends the continuation of role duties, in that the Mayor and City Manager be listed as signatories for Contractual Documents; and that the Mayor, City Manager, Grant Manager and Senior Accountant be listed as signatories for the Request for Payment Forms regarding GLO Contract #20-065-128-C439. The grant also requires that the City Council designate a Civil Rights Officer, Labor Standards Officer, and Section 3 Coordinator to ensure that all Civil Rights Policies are followed. Also, the grant requires that a responsible party be charged with completing the environmental reporting requirements for the 8/18/2020 Agenda Item: 1b CITY COUNCIL AGENDA Agenda Item #1b grant. For this specific grant, the Grants Manager recommends that Council allocate these roles and responsibilities to the Grants Manager. To maintain program compliance in the administration of 2020 Texas Community Development Block Grant – Disaster Recovery (CDBG-DR) project under GLO Contract #20-065-128-C439, the referenced documents below will need to be submitted to the Texas General Land Office (GLO) to start the project: • Depository / Authorized Signatories Designation Form • Appointment of Labor Standards Officer • Appointment of Civil Rights Officer • Appointment of Section 3 Coordinator Previous Council Action: No previous action taken on this specific matter for this project. Financial Implications: ☒There is no financial impact associated with this item. Approvals: ☐City Attorney ☐Director of Finance ☒City Manager Associated Information: • Resolution 2020-26 • Depository / Authorized Signatories Designation Form • FORM: Appointment of Labor Standards Officer • FORM: Appointment of Civil Rights Officer • FORM: Appointment of Section 3 Coordinator RESOLUTION NO. 2020-26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, DESIGNATING AUTHORIZED SIGNATORIES FOR CONTRACTUAL DOCUMENTS AND DOCUMENTS FOR REQUESTING FUNDS PERTAINING TO THE TEXAS GENERAL LAND OFFICE COMMUNITY DEVELOPMENT BLOCK GRANT – DISASTER RECOVERY (CDBG-DR) PROGRAM FOR HARVEY ROUND 1 FUNDING - CONTRACT NUMBER 20-065-128-C439. WHEREAS The City of Huntsville, Texas has received a 2020 Community Development Block Grant – Disaster Recovery (CDBG-DR) Program award to provide flood and drainage and street improvements, and; WHEREAS It is necessary to appoint persons to execute contractual documents and documents for requesting funds from the Texas General Land Office (GLO), and; WHEREAS An original signed copy of the Depository/Authorized Signatories Designation Form is to be submitted with a copy of this Resolution, and; WHEREAS The City Huntsville, Texas acknowledges that in the event of a change by an authorized signatory of the City (elections, illness, resignations, etc.), the City must provide Texas General Land Office (GLO) with the following: • A Resolution stating who the new authorized signatory is; and • A revised Depository/ Authorized Signatories Designation Form. NOW THEREFORE, be it resolved by the City Council of the City of Huntsville Texas, as follows: SECTION 1: The Mayor and City Manager be authorized to execute contractual documents between the Texas General Land Office and the City for the 2020 Community Development Block Grant – Disaster Recovery (CDBG-DR) Program. SECTION 2: The Mayor, City Manager, Grant Manager and Senior Accountant be authorized to execute the State of Texas Purchase Voucher and Request for Payment Form documents required for requesting funds approved in the 2020 Community Development Block Grant – Disaster Recovery (CDBG-DR) Program. SECTION 3: The Grant Manager is designated the Responsible Party for the City with regards to the Environmental Assessment required for GLO Contract No. 20-065-128-C439. SECTION 4: Designates the Grant Manager as the Civil Rights Officer, Labor Standards Officer, and Section 3 Coordinator with regards to GLO Contract No. 20-065-128-C439. PASSED AND APPROVED this 18th day of August 2020. THE CITY OF HUNTSVILLE Andy Brauninger, Mayor ATTEST: APPROVED AS TO FORM: Brenda Poe, City Secretary Leonard Schneider, City Attorney Agenda Item #1c Item/Subject: Consider adopting Resolution 2020-27 to update and reaffirm various required Civil Rights Policies, as required for program compliance to administer the 2020 Texas Community Development Block Grant – Disaster Recovery (CDBG-DR) under Contract Award #20-065-128-C439, from the Texas General Land Office (GLO). Initiating Department/Presenter: Finance Presenter: Kristie Hadnot, Grants Manager Recommended Motion: Move to adopt Resolution 2020-27 to update and reaffirm various required Civil Rights Policies, as required for program compliance to administer the 2020 Texas Community Development Block Grant – Disaster Recovery (CDBG-DR) Contract Award #20-065-128-C439 , from the Texas General Land Office (GLO). Strategic Initiative: Goal #4 - Infrastructure - Ensure the quality of the City utilities, transportation and physical structures so that the City’s core services can be provided in an effective and efficient manner. Discussion: The City was awarded a CDBG Disaster Recovery contract on July 1, 2020 from the Texas General Land Office for the 2020 Flood & Drainage Improvement and Street Improvement projects in the Elkins Lake Subdivision. The grant was awarded to the City in response to damages sustained from Hurricane Harvey. HUD provided the State of Texas with a $5.6 billion CDBG-DR allocation for Hurricane Harvey recovery. Out of the statewide allocation, the Houston-Galveston Area Council of Governments (HGAC) received over $240 million for regional distribution to various impacted cities and counties. As determined by HGAC’s Method of Distribution published on July 17, 2018, the City of Huntsville received a total fund allocation of $1,848,750.00 from the Infrastructure Program. As programmatically and contractually required with this grant program, the City as a “grantee” must demonstrate compliance with all State and Federal requirements to ensure equal opportunity and access to all benefits derived from the CDBG-Disaster Recovery grant program. As per the 2019 CDBG-DR Project Implementation Manual, “all required resolutions, ordinances, and policies regarding civil rights, equal opportunity, and citizen participation contained within this chapter, [Chapter 11: Civil Rights Requirements], must be in effect throughout the contract period. Prior to the release of funds for any CDBG contract, Grant Recipients are required to submit a copy of the policies to GLO, adopted or reaffirmed no more than two years prior to the contract start date, to ensure that such policies are current.” Some of the civil rights policies previously adopted by the City had to be modified to reflect programmatic assurances needed to validate our grant activities relevant to the current GLO contract. To maintain current program compliance and good standing on the active grant contract with GLO, and to avoid a potential finding during final project audit, it is recommended by the Grants Manager to have the following civil rights policies updated and/or reaffirmed to conform with current HUD, and subsequent GLO, programmatic and compliance regulations: 8/18/2020 Agenda Item: 1c CITY COUNCIL AGENDA Agenda Item #1c • Citizen Participation Plan (English & Spanish version to update); • Excessive Force Policy (English & Spanish version to reaffirm from 6/18/2019); • Fair Housing Policy (English & Spanish version to update); • Section 3 Policy (English & Spanish version to update); • Section 504 Policy and Grievance Procedures (English & Spanish version to update); • Code of Conduct Policy (English & Spanish version to update); and • Limited English Proficiency Plan (English & Spanish version to reaffirm from 6/18/2019). Previous Council Action: Previous Resolution 2019-33 was passed and approved on June 18, 2019 to update and reaffirm civil rights policies associated with active grant projects funded from the Texas Department of Agriculture. Financial Implications: ☒There is no financial impact associated with this item. Approvals: ☐City Attorney ☐Director of Finance ☒City Manager Associated Information: • Resolution 2020-27 • Citizen Participation Plan (English & Spanish version); • Excessive Force Policy (English & Spanish version); • Fair Housing Policy (English & Spanish version); • Section 3 Policy (English & Spanish version); • Section 504 Policy and Grievance Procedures (English & Spanish version); • Code of Conduct Policy (English & Spanish version); and • Limited English Proficiency Plan (English & Spanish version). • Supplemental for Review – Resolution 2019-33 THE CITY OF HUNTSVILLE CITIZEN PARTICIPATION PLAN TEXAS COMMUNITY DEVELOPMENT BLOCK GRANT – DISASTER RECOVERY PROGRAM COMPLAINT PROCEDURES These complaint procedures comply with the requirements of the Texas General Land Office Community Development Block Grant – Disaster Recovery (CDBG - DR) Program and Local Government Requirements found in 24 CFR §570.486 (Code of Federal Regulations). Citizens can obtain a copy of these procedures at the City of Huntsville, Texas, 1212 Avenue M, Huntsville, TX 77340, (936) 291-5428 during regular business hours. Below are the formal complaint and grievance procedures regarding the services provided under the CDBG - DR project: 1. A person who has a complaint or grievance about any services or activities with respect to the CDBG-DR project, whether it is a proposed, ongoing, or completed CDBG-DR project, may during regular business hours submit such complaint or grievance, in writing to the City Manager, at City of Huntsville, Texas, 1212 Avenue M, Huntsville, TX 77340 or may call (936) 291-5428. 2. A copy of the complaint or grievance shall be transmitted by the City Manager to the entity that is the subject of the complaint or grievance and to the City Attorney within five (5) working days after the date of the complaint or grievance was received. 3. The City Manager shall complete an investigation of the complaint or grievance, if practicable, and provide a timely written answer to person who made the complaint or grievance within ten (10) days. 4. If the investigation cannot be completed within ten (10) working days per Statement # 3 above, the person who made the grievance or complaint shall be notified, in writing, within fifteen (15) days where practicable after receipt of the original complaint or grievance and shall detail when the investigation should be completed. 5. If necessary, the grievance and a written copy of the subsequent investigation shall be forwarded to the CDBG-DR for their further review and comment. 6. If appropriate, provide copies of grievance procedures and responses to grievances in both English and Spanish, or other appropriate language. TECHNICAL ASSISTANCE When requested, the City shall provide technical assistance to groups that are representative of persons of low- and moderate-income in developing proposals for the use of CDBG-DR funds. The City of Huntsville, based upon the specific needs of the community’s residents at the time of the request, shall determine the level and type of assistance. PUBLIC HEARING PROVISIONS For each public hearing scheduled and conducted by the City of Huntsville, the following public hearing provisions shall be observed: 1. Public notice of all hearings must be published at least seventy-two (72) hours prior to the scheduled hearing. The public notice must be published in a local newspaper. Each public notice must include the date, time, location, and topics to be considered at the public hearing. A published newspaper article can also be used to meet this requirement so long as it meets all content and timing requirements. Notices should also be prominently posted in public buildings and distributed to local Public Housing Authorities and other interested community groups. 2. When a significant number of non-English speaking residents are a part of the potential service area of the CDBG-DR project, vital documents such as notices should be published in the predominant language of these non-English speaking citizens. 3. Each public hearing shall be held at a time and location convenient to potential or actual beneficiaries and will include accommodation for persons with disabilities. Persons with disabilities must be able to attend the hearings and the City of Huntsville must make arrangements for individuals who require auxiliary aids or services if contacted at least two days prior to the hearing. 4. A public hearing held prior to the submission of a CDBG-DR application must be held after 5:00 PM on a weekday or at a convenient time on a Saturday or Sunday. 5. When a significant number of non-English speaking residents can be reasonably expected to participate in a public hearing, an interpreter should be present to accommodate the needs of the non-English speaking residents. The City of Huntsville shall comply with the following citizen participation requirements for the preparation and submission of an application for a CDBG-DR project: 1. At a minimum, the City of Huntsville shall hold at least one (1) public hearing prior to submitting an application to the Texas Department of Agriculture. 2. The City of Huntsville shall retain documentation of the hearing notice(s), a listing of persons attending the hearing(s), minutes of the hearing(s), and any other records concerning the proposed use of funds for three (3) years from closeout of the grant to the State of Texas. Such records shall be made available to the public in accordance with Chapter 552, Texas Government Code. 3. The public hearing shall include a discussion with citizens as outlined in the applicable CDBG-DR application manual to include, but is not limited to, the development of housing and community development needs, the amount of funding available, all eligible activities under the CDBG-DR program, and the use of past CDBG-DR contract funds, if applicable. Citizens, with particular emphasis on persons of low- and moderate-income who are residents of slum and blight areas, shall be encouraged to submit their views and proposals regarding community development and housing needs. Citizens shall be made aware of the location where they may submit their views and proposals should they be unable to attend the public hearing. 4. When a significant number of non-English speaking residents can be reasonably expected to participate in a public hearing, an interpreter should be present to accommodate the needs of the non-English speaking residents. The City of Huntsville must comply with the following citizen participation requirements in the event that the City of Huntsville receives funds from the CDBG-DR program: 1. The City of Huntsville shall also hold a public hearing concerning any substantial change, as determined by CDBG-DR, proposed to be made in the use of CDBG-DR funds from one eligible activity to another again using the preceding notice requirements. 2. Upon completion of the CDBG-DR project, the City of Huntsville shall hold a public hearing and review its program performance including the actual use of the CDBG-DR funds. 3. When a significant number of non-English speaking residents can be reasonably expected to participate in a public hearing, for either a public hearing concerning substantial change to the CDBG-DR project or for the closeout of the CDBG-DR project, publish notice in both English and Spanish, or other appropriate language and provide an interpreter at the hearing to accommodate the needs of the non-English speaking residents. 4. The City of Huntsville shall retain documentation of the CDBG-DR project, including hearing notice(s), a listing of persons attending the hearing(s), minutes of the hearing(s), and any other records concerning the actual use of funds for a period of three (3) years from closeout of the grant to the state. Such records shall be made available to the public in accordance with Chapter 552, Texas Government Code. _______________________________________ ____________________________ Andy Brauninger, Mayor Date LA CIUDAD DE HUNTSVILLE PLAN DE PARTICIPACIÓN CIUDADANA SUBVENCIÓN DE BLOQUE DE DESARROLLO COMUNITARIO DE TEXAS – PROGRAMA DE RECUPERACIÓN DE DESASTRES PROCEDIMIENTOS DE QUEJA Estos procedimientos de queja cumplen con los requisitos del Programa de la Oficina General de Tierras de Texas Subvención de Bloques de Desarrollo Comunitario – Recuperación de Desastres (CDBG-DR) y los requisitos del gobierno local que se encuentran en 24 CFR n.o570.486 (Código de Regulaciones Federales). Los ciudadanos pueden obtener una copia de estos procedimientos en la City de Huntsville, Texas, 1212 Avenue M, Huntsville, TX 77340, (936) 291-5428 durante el horario comercial regular. A continuación se presentan los procedimientos formales de quejas y quejas con respecto a los servicios prestados en el marco del proyecto CDBG - DR: 1. Una persona que tiene una queja o queja sobre cualquier servicio o actividad con respecto al proyecto CDBG-DR, ya sea un proyecto DE CDBG-DR propuesto, en curso o completado, puede durante el horario comercial regular presentar dicha queja o queja, por escrito al Gerente de la Ciudad, en la Ciudad de Huntsville, Texas, 1212 Avenue M, Huntsville, TX 77340 o puede llamar (936) 291-5428. 2. Una copia de la queja o queja shaserá transmitida por el Gerente de la Ciudad a la entidad que es objeto de la queja o queja y al Abogado de la Ciudad dentro de los cinco (5) días hábiles despuésde la fecha de la queja o queja fue recibida. 3. El Gerente de la Ciudad deberá completar una investigación de la queja o queja, si es posible, y proporcionar una respuesta oportuna por escrito a la persona que hizo la queja o queja dentro de los diez (10) días. 4. Si la investigación no puede completarse dentro de los diez (10) días hábiles por la Declaración n.o 3 anterior, la persona que presentó la queja o queja será notificada, por escrito, dentro de los quince (15) días cuando sea posible después de la recepción de la queja o queja original y deberá detallar cuándo debe completarse la investigación. 5. Si es necesario, la queja y una copia escrita de la investigación posterior se remitirán al CDBG-DR para su ulterior revisión y comentario. 6. Si procede, proporcione copias de los procedimientos de queja y las respuestas a las quejas en inglés y español, u otro idioma apropiado. ASISTENCIA TÉCNICA Cuando se solicite, la Ciudad proporcionará asistencia técnica a los grupos que sean representativos de personas de ingresos bajos y moderados en la elaboración de propuestas para el uso de fondos CDBG-DR. La ciudad de Huntsville, basada en las necesidades específicas de los residentes de la comunidad en el momento de la solicitud, determinará el nivel y el tipo de asistencia. DISPOSICIONES DE AUDIENCIA PÚBLICA Para cada audiencia pública programada y llevada a cabo por la ciudad de Huntsville se observarán las siguientes disposiciones de audiencia pública: 1. El aviso público de todas las audiencias debe publicarse al menos setenta y dos (72) horas antes de la audiencia programada. El aviso público debe publicarse en un periódico local. Cada aviso público debe incluir la fecha, hora, ubicación y temas a tener en cuenta en la audiencia pública. Un artículo de periódico publicado también se puede utilizar para cumplir con este requisito siempre y cuando cumpla con todos los requisitos de contenido y tiempo. Los avisos también deben publicarse de manera prominente en edificios públicos y distribuirse a las autoridades locales de vivienda pública y otros grupos comunitarios interesados. 2. Cuando un número significativo de residentes de habla no inglesa forman parte del área de servicio potencial del proyecto CDBG-DR, los documentos vitales, como los avisos, deben publicarse en el idioma predominante de estos ciudadanos de habla no inglesa. 3. Cada audiencia pública se llevará a cabo en un momento y lugar conveniente para los beneficiarios potenciales o reales e incluirá alojamiento para personas con discapacidad. Las personas con discapacidades deben poder asistir a las audiencias y la ciudad de Huntsville debe hacer arangements para las personas que requieren ayudas o servicios auxiliares si se contacta al menos dos días antes de la audiencia. r 4. Una audiencia pública celebrada antes de la presentación de una solicitud CDBG-DR debe llevarse a cabo después de las 5:00 PM en un día de la semana o en un horario conveniente en un sábado o domingo. 5. Cuando se puede esperar razonablemente que un número significativo de residentes de habla no inglesa participen en una audiencia pública, un intérprete debe estar presente para satisfacer las necesidades de los residentes que no hablan inglés. La ciudad de Huntsville cumplirá con los siguientes requisitos de participación ciudadana para la preparación y presentación de una prescripción para un proyecto CDBG-DR: 1. Como mínimo, la ciudad de Huntsville llevará a cabo al menos una (1) audiencia pública antes de presentar una solicitud a la Oficina General de Tierras de Texas. 2. La ciudad de Huntsville conservará la documentación de los avisos de audiencia, una lista de personas que asistan a la audiencia, actas de la audiencia y cualquier otro registro sobre el uso propuesto de fondos durante tres (3) años desde el cierre de la subvención a la State de Texas. Dichos registros se pondrán a disposición del público de conformidad con el Capítulo 552, Código del Gobierno de Texas. 3. La audiencia pública incluirá una discusión con los ciudadanos como se describe en el manual de solicitud del CDBG-DR aplicable para incluir, pero no se limita a, el desarrollo de las necesidades de vivienda y desarrollo comunitario, la cantidad de financiación disponible, todas las actividades elegibles bajo el programa CDBG-DR, y el uso de fondos de contratos CDBG- DR anteriores, si corresponde. Se alentará a los ciudadanos, haciendo especial hincapié en las personas de ingresos bajos y moderados residentes en zonas de tugurios y de niebla, a que presenten sus puntos de vista y propuestas sobre el desarrollo comunitario y las necesidades de vivienda. Se informará a los ciudadanos del lugar en el que pueden presentar sus opiniones y propuestas en caso de que no puedan asistir a la audiencia pública. 4. Cuando se puede esperar razonablemente que un número significativo de residentes de habla no inglesa participen en una audiencia pública, un intérprete debe estar presente para satisfacer las necesidades de los residentes que no hablan inglés. La ciudad de Huntsville debe cumplir con los siguientes requisitos de participación ciudadana en caso de que la ciudad de Huntsville reciba fondos del programa CDBG-DR: 1. La ciudad de Huntsville también celebrará una audiencia pública sobre cualquier cambio sustancial, según lo determinado por CDBG-DR, propuesto para ser hecho en el uso de fondos CDBG-DR de una actividad elegible a otra de nuevo utilizando los requisitos previos de notificación. 2. Una vez completado el proyecto CDBG-DR la ciudad de Huntsville llevará a cabo una audiencia pública y revisará el desempeño de su programa, incluido el uso real de los fondos CDBG-DR. 3. Cuando se puede esperar razonablemente que un número significativo de residentes de habla no inglesa participen en una audiencia pública, ya sea para una audiencia pública sobre cambios sustanciales en el proyecto CDBG-DR o para el cierre del proyecto CDBG-DR, publique un aviso en inglés y español, u otro idioma apropiado y proporcione un intérprete en la audiencia para satisfacer las necesidades de los residentes no angloparlantes. 4. El City de Huntsville conservará la documentación del proyecto CDBG-DR, incluyendo avisos de audiencia, una lista de personas que asistan a la audiencia, actas de la audiencia y cualquier otro registro sobre el uso real de fondos por un período de tres (3) años a partir del cierre de la subvención al estado. Dichos registros se pondrán a disposición del público de conformidad con el Capítulo 552, Código del Gobierno de Texas. _______________________________________ ____________________________ Andy Brauninger, Alcalde Fecha Fair Housing Policy In accordance with Fair Housing Act, the City of Huntsville, Texas hereby adopts the following policy with respect to the Affirmatively Furthering Fair Housing: 1. The City of Huntsville, Texas agrees to affirmatively further fair housing choice for all seven protected classes (race, color, religion, sex, disability, familial status, and national origin). 2. The City of Huntsville, Texas agrees to plan at least two (2) activities during the contract term to affirmatively further fair housing. 3. The City of Huntsville, Texas will introduce and/or comply in the passage of a resolution adopting this policy. LET IT BE RESOLVED, that the City Council for the City of Huntsville, Texas has read and fully agreed to this plan, and have become a party to the full implementation of this program. PASSED AND APPROVED this 18TH day of August 2020. THE CITY OF HUNTSVILLE, TEXAS _________________________________ Andy Brauninger, Mayor ATTEST: APPROVED AS TO FORM: _____________________________ __________________________________ Brenda Poe, City Secretary Leonard Schneider, City Attorney Política de Vivienda Justa De acuerdo con la Ley de Vivienda Justa, la Ciudad de Huntsville, Texas reafirma y adopta la siguiente política con respecto a la Vivienda Justa de Promoción Afirmativa: 1. La ciudad de Huntsville, Texas, acepta ser afirmativamente más justa opción de alojamiento para las siete clases protegidas (raza, color, religión, sexo, discapacidad, estatus familiar y origen nacional). 2. La ciudad de Huntsville, Texas, acepta planificar al menos dos (2) actividades durante el plazo del contrato para promover una vivienda justa. 3. La ciudad de Huntsville, Texas, introducirá y/o cumplirá en la aprobación de una resolución que adopte esta política. DEJE QUE SE RESUELVE, que el Concejo Municipal de la Ciudad de Huntsville, Texas ha leído y está totalmente de acuerdo con este plan, y se han convertido en parte de la plena implementación de este programa. PASADO Y APROBADO ESTE 18 de agosto de 2020. LA CIUDAD DE HUNTSVILLE, TEXAS ___________________________________ Andy Brauninger, Alcalde ATESTIGUAR: APROBADO EN CUANTO A LA FORMA: _____________________________ ___________________________________ Brenda Poe, Secretaria de la Ciudad Leonard Schneider, Abogado de la Ciudad Section 3 Policy In accordance with 12 U.S.C. 1701u, the City of Huntsville agrees to implement the following steps, which, to the greatest extent feasible, will provide job training, employment and contracting opportunities for Section 3 residents and Section 3 businesses of the areas in which the program/project is being carried out. A. Introduce and pass a resolution adopting this plan as a policy to strive to attain goals for compliance to Section 3 regulations by increasing opportunities for employment and contracting for Section 3 residents and businesses. B. Assign duties related to implementation of this plan to the designated Civil Rights Officer. C. Notify Section 3 residents and business concerns of potential new employment and contracting opportunities as they are triggered by CDBG-DR grant awards through the use of: Public Hearings and related advertisements; public notices; bidding advertisements and bid documents; notification to local business organizations such as the Chamber(s) of Commerce or the Urban League; local advertising media including public signage; project area committees and citizen advisory boards; local HUD offices; regional planning agencies; and all other appropriate referral sources. Include Section 3 clauses in all covered solicitations and contracts. D. Maintain a list of those businesses that have identified themselves as Section 3 businesses for utilization in CDBG-DR funded procurements, notify those businesses of pending contractual opportunities, and make this list available for general Grant Recipient procurement needs. E. Maintain a list of those persons who have identified themselves as Section 3 residents and contact those persons when hiring/training opportunities are available through either the Grant Recipient or contractors. F. Require that all Prime contractors and subcontractors with contracts over $100,000 commit to this plan as part of their contract work. Monitor the contractors’ performance with respect to meeting Section 3 requirements and require that they submit reports as may be required by HUD or GLO to the Grant Recipient. G. Submit reports as required by HUD or GLO regarding contracting with Section 3 businesses and/or employment as they occur; and submit reports within 20 days of the federal fiscal year end (by October 20) which identify and quantify Section 3 businesses and employees. H. Maintain records, including copies of correspondence, memoranda, etc., which document all actions taken to comply with Section 3 regulations. As Mayor of the City of Huntsville, I, the undersigned have read and fully agreed to this plan, and will direct the appropriate City Personnel to accomplish the full implementation of this program per the adoption of the aforementioned Resolution by the City Council of the City of Huntsville, Texas. Andy Brauninger, Mayor Date Sección 3 Política De acuerdo con 12 U.S.C. 1701u, la ciudad de Huntsville se compromete a implementar los siguientes pasos, que, en la mayor medida posible,proporcionarán capacitación laboral, empleo y oportunidades de contratación para los residentes de la Sección 3 y las empresas de la Sección 3 de las áreas en las que se está llevando a cabo el programa/proyecto. A. Introducir y aprobar una resolución que adopte este plan como una política para esforzarse por alcanzar los objetivos de cumplimiento de las regulaciones de la Sección 3 mediante el aumento de las oportunidades de empleo y contratación para los residentes y las empresas de la Sección 3. B. Asigne deberes relacionados con la implementación de este plan al Oficial de Derechos Civiles designado. C. Notificar a los residentes de la Sección 3 y las preocupaciones comerciales sobre posibles nuevas oportunidades de empleo y contratación, ya que son provocadas por los premios de becas CDBG-DR mediante el uso de: Audiencias Públicas y anuncios relacionados; avisos públicos; anuncios de ofertas y documentos de oferta; notificación a organizaciones empresariales locales como la Cámara(s) de Comercio o la Liga Urbana; medios de publicidad locales, incluida la señalización pública; comités de área de proyectos y consejos consultivos ciudadanos; oficinas locales de HUD; organismos regionales de planificación; y todas las demás fuentes de referencia apropiadas. Incluya las cláusulas de la Sección 3 en todas las solicitudes y contratos cubiertos. D. Mantener una lista de las empresas que se han identificado como empresas de la Sección 3 para su utilización en las adquisiciones financiadas por el CDBG-DR, notificar a esas empresas de oportunidades contractuales pendientes y poner esta lista a disposición para las necesidades generales de adquisición de Receptores de Subvenciones. E. Mantener una lista de aquellas personas que se han identificado como residentes de la Sección 3 y ponerse en contacto con esas personas cuando las oportunidades de contratación / capacitación están disponibles a través del Receptor de La Subvención o contratistas. F. Exigir que todos los contratistas y subcontratistas Prime con contratos superiores a $100,000 se comprometan con este plan como parte de su trabajo por contrato. Supervisar el desempeño de los contratistas con respecto al cumplimiento de los requisitos de la Sección 3 y exigir que presenten informes según lo requieran HUD u GLO al Receptor de la Subvención. G. Presentar informes según lo requiera HUD o GLO con respecto a la contratación con empresas de la Sección 3 y/o empleo a medida que ocurran; y presentar informes dentro de los 20 días posteriores al final del año fiscal federal (antes del 20 de octubre) que identifican y cuantifican a las empresas y empleados de la Sección 3. H. Mantener registros, incluyendo copias de correspondencia, memorandos, etc., que documentan todas las acciones tomadas para cumplir con las regulaciones de la Sección 3. Como Alcalde de la Ciudad de Huntsville, yo, los abajo firmantes he leído y acepto plenamente este plan, y dirigiré al Personal de la Ciudad apropiado para lograr la plena implementación de este programa por la adopción de la Mencionada Resolución por el Concejo Municipal de la Ciudad de Huntsville, Texas. Andy Brauninger, Alcalde Fecha Section 504 Policy Against Discrimination Based on Handicap and Grievance Procedures In accordance with 24 CFR Section 8, Nondiscrimination based on Handicap in federally assisted programs and activities of the Department of Housing and Urban Development, Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), and Section 109 of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 5309), the City of Huntsville hereby adopts the following policy and grievance procedures: 1. Discrimination Prohibited. No otherwise qualified individual with handicaps in the United States shall, solely by reason of his or her handicap, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance from the Department of Housing and Urban Development (HUD). 2. The City of Huntsville does not discriminate on the basis of handicap in admission or access to, or treatment or employment in, its federally assisted programs and activities. 3. The City of Huntsville’s recruitment materials or publications shall include a statement of this policy in 1. above. 4. The City of Huntsville shall take continuing steps to notify participants, beneficiaries, applicants and employees, including those with impaired vision or hearing, and unions or professional organizations holding collective bargaining or professional agreements with the recipients that it does not discriminate on the basis of handicap in violation of 24 CFR Part 8. 5. For hearing and visually impaired individuals eligible to be served or likely to be affected by the CDBG-DR program, the City of Huntsville shall ensure that they are provided with the information necessary to understand and participate in the CDBG-DR program. 6. Grievances and Complaints a. Any person who believes she or he has been subjected to discrimination on the basis of disability may file a grievance under this procedure. It is against the law for the City of Huntsville to retaliate against anyone who files a grievance or cooperates in the investigation of a grievance. b. Complaints should be addressed to: Kristie Hadnot, Grants Manager, 1212 Avenue M, Huntsville, Texas 77340, who has been designated to coordinate Section 504 compliance efforts. c. A complaint should be filed in writing or verbally, contain the name and address of the person filing it, and briefly describe the alleged violation of the regulations. d. A complaint should be filed within thirty (30) working days after the complainant becomes aware of the alleged violation. e. An investigation, as may be appropriate, shall follow a filing of a complaint. The investigation will be conducted by Kristie Hadnot, Grants Manager. Informal but thorough investigations will afford all interested persons and their representatives, if any, an opportunity to submit evidence relevant to a complaint. f. A written determination as to the validity of the complaint and description of resolution, if any, shall be issued by Kristie Hadnot, Grants Manager, and a copy forwarded to the complainant with fifteen (15) working days after the filing of the complaint where practicable. g. The Section 504 coordinator shall maintain the files and records of the City of Huntsville relating to the complaint files. h. The complainant can request a reconsideration of the case in instances where he or she is dissatisfied with the determination/resolution as described in f. above. The request for reconsideration should be made to the City of Huntsville within ten (10) working days after the receipt of the written determination/resolution. i. The right of a person to a prompt and equitable resolution of the complaint filed hereunder shall not be impaired by the person’s pursuit of other remedies such as the filing of a Section 504 complaint with the U.S. Department of Housing and Urban Development. Utilization of this grievance procedure is not a prerequisite to the pursuit of other remedies. j. These procedures shall be construed to protect the substantive rights of interested persons, to meet appropriate due process standards and assure that the City of Huntsville complies with Section 504 and HUD regulations. ______________________________________________ ________________ Andy Brauninger, Mayor Date Sección 504 Política Contra la Discriminación Basada en Procedimientos de Hándicap Y Quejas De acuerdo con 24 CFR Sección 8, No discriminación basada en hándicap en programas y actividades de asistencia federal del Departamento de Vivienda y Desarrollo Urbano, Sección 504 de la Ley de Rehabilitación de 1973, en su forma enmendada (29 U.S.C. 794), y la Sección 109 de la Ley de Vivienda y Desarrollo Comunitario de 1974, en su forma enmendada (42 U.S.C. 5309), la Ciudad de Huntsville adopta los siguientes procedimientos de política y quejas: 1. Discriminación Prohibido. Ninguna persona calificada de otra manera con discapacidades en los Estados Unidos, únicamente por razón de su discapacidad, será excluida de la participación en, se le negarán los beneficios de, o ser objeto de discriminación bajo cualquier programa o actividad que reciba asistencia financiera federal del Departamento de Vivienda y Desarrollo Urbano (HUD). 2. La ciudad de Huntsville no discrimina sobre la base de discapacidad en la admisión o el acceso a, o tratamiento o empleo en, sus programas y actividades de asistencia federal. 3. Los materiales o publicaciones de reclutamiento de la ciudad de Huntsville incluirán una declaración de esta política en 1. encima. 4. La ciudad de Huntsville tomará medidas continuas para notificar a los participantes, beneficiarios, solicitantes y empleados, incluyendo aquellos con visión o audiencia Deteriorada, y sindicatos u organizaciones profesionales que posean negociaciones colectivas o acuerdos profesionales con los destinatarios que no discrimina sobre la base de discapacidad en violación de 24 CFR Parte 8. 5. Para las personas con discapacidad auditiva y visual elegibles para ser atendidas o susceptibles de ser afectadas por el programa CDBG-DR, la Ciudad de Huntsville se asegurará de que se les proporcione la información necesaria para entender y participar en el programa CDBG-DR. 6. Quejas y Quejas a. Cualquier persona que crea que ha sido objeto de discriminación por motivos de discapacidad puede presentar una queja bajo este procedimiento. Es contra la ley que la ciudad de Huntsville tomar represalias contra cualquier persona que presente una queja o coopere en la investigación de una queja. b. Las quejas deben ser dirigidas a: Kristie Hadnot, Gerente de Subvenciones, 1212 Avenue M, Huntsville, Texas 77340, quien ha sido designado para coordinar los esfuerzos de cumplimiento de la Sección 504. c. Una queja debe presentarse por escrito o verbalmente, contener el nombre y la dirección de la persona que la presenta, y describir brevemente la supuesta violación de las regulaciones. d. Una queja presentarse dentro de los treinta (30) días hábiles después de que el reclamante tenga conocimiento de la presunta violación. e. Una investigación, según proceda, seguirá a una presentación de una queja. La investigación será llevada a cabo por Kristie Hadnot, Gerente de Subvenciones. Las investigaciones informales pero exhaustivas darán a todas las personas interesadas y a sus representantes, si las hubiera, la oportunidad de presentar pruebas pertinentes para una queja. f. Kristie Hadnot, Gerente de Subvenciones, emitirá una determinación por escrito sobre la validez de la queja y la descripción de la resolución, en su caso, y una copia enviada al Querellante con quince (15) días hábiles después de la presentación de la queja cuando sea posible. g. El coordinador de la Sección 504 mantendrá los archivos y registros de la ciudad de Huntsville en relación con los archivos de quejas. h. El reclamante puede solicitar una reconsideración del caso en los casos en que no esté satisfecho con la determinación/resolución descrita en f. supra. La solicitud de reconsideración debe presentarse a la ciudad de Huntsville dentro de los diez (10) días hábiles siguientesa la recepción del mandamiento n trabajando determinación/resolución. i. El derecho de una persona a una resolución pronta y equitativa de la queja presentada en virtud del presente no se verá afectado por la búsqueda por parte de la persona de otros recursos, como la presentación de una queja de la Sección 504 ante el Departamento de Vivienda y Desarrollo Urbano de los Estados Unidos. La utilización de este procedimiento de reclamación no es un requisito previo para la búsqueda de otros recursos. j. Estos procedimientos se interpretarán para proteger los derechos sustantivos de las personas interesadas, para cumplir con las normas apropiadas del debido proceso y asegurar que la ciudad de Huntsville cumple con las regulaciones de la Sección 504 y HUD. ______________________________________________ ________________ Andy Brauninger, Alcalde Fecha CODE OF CONDUCT As a Grant Recipient of a Texas Community Development Block Grant (CDBG) contract, the City of Huntsville shall avoid, neutralize, or mitigate actual or potential conflicts of interest so as to prevent an unfair competitive advantage or the existence of conflicting roles that might impair the performance of the CDBG contract or impact the integrity of the procurement process. For the procurement of goods and services, no employee, officer, or agent of the City of Huntsville shall participate in the selection, award, or administration of a contract supported by CDBG funds if he or she has a real, or apparent conflict of interest. Such a conflict could arise if the employee, officer, or agent; any member of his/her immediate family; his/her partner; or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. No officer, employee, or agent of the City of Huntsville shall solicit or accept gratuities, favors, or anything of monetary value from contractors or firms, potential contractors or firms, or parties to sub-agreements, except where the financial interest is not substantial or the gift is an unsolicited item of nominal intrinsic value. Contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. For all other cases, no employee, agent, consultant, officer, or elected or appointed official of the state, or of a unit of general local government, or of any designated public agencies, or subrecipients which are receiving CDBG funds, that has any CDBG function / responsibility, or is in a position to participate in a decision- making process or gain inside information, may obtain a financial interest or benefit from the CDBG activity. The conflict of interest restrictions and procurement requirements identified herein shall apply to a benefitting business, utility provider, or other third-party entity that is receiving assistance, directly or indirectly, under a CDBG contract or award, or that is required to complete some or all work under the CDBG contract in order to meet the National Program Objective. Any person or entity including any benefitting business, utility provider, or other third-party entity that is receiving assistance, directly or indirectly, under a CDBG contract or award, or that is required to complete some or all work under the CDBG contract in order to meet a National Program Objective, that might potentially receive benefits from CDBG awards may not participate in the selection, award, or administration of a contract supported by CDBG funding. Any alleged violations of these standards of conduct shall be referred to the City Attorney for the City of Huntsville. Where violations appear to have occurred, the offending employee, officer or agent shall be subject to disciplinary action, including, but not limited to, dismissal or transfer; where violations or infractions appear to be substantial in nature, the matter may be referred to the appropriate officials for criminal investigation and possible prosecution. PASSED AND APPROVED on this 18th day of August 2020. _______________________________ Andy Brauninger, Mayor CÓDIGO DE CONDUCTA Como Receptor de Subvenciones de un contrato de Subvención para bloques de desarrollo comunitario de Texas (CDBG), la Ciudad de Huntsville evitará, neutralizará o mitigará conflictos de intereses reales o potenciales para evitar una ventaja competitiva injusta o la existencia de funciones conflictivas que podrían afectar el desempeño del contrato CDBG o afectar la integridad del proceso de adquisición. Para la adquisición de bienes y servicios, ningún empleado, oficial o agente de la ciudad de Huntsville participará en la selección, adjudicación o administración de un contrato respaldado por fondos CDBG si tiene un conflicto de intereses real o aparente. Tal conflicto podría surgir si el empleado, oficial o agente; cualquier miembro de su familia inmediata; su pareja; o una organización que emplea o está a punto de emplear a cualquiera de las partes indicadas en el presente documento, tiene un interés financiero o de otro tipo o un beneficio personal tangible de una empresa considerada para un contrato. Ningún oficial, empleado o agente de la ciudad de Huntsville solicitará o aceptará propinas, favores o cualquier cosa de valor monetario de contratistas o empresas, contratistas potenciales o empresas, o partes en subcontecciones, excepto cuando el interés financiero no sea sustancial o el regalo sea un artículo no solicitado de valor intrínseco nominal. Los contratistas que desarrollen o redactan especificaciones, requisitos, declaraciones de trabajo o invitaciones a ofertas o solicitudes de propuestas deben quedar excluidos de competir por tales adquisiciones. Para todos los demás casos, ningún empleado, agente, consultor, oficial o funcionario electo o designado del estado, o de una unidad de gobierno local general, o de cualquier organismo público designado, o subrecipientes que están recibiendo fondos del CDBG, que tenga cualquier función / responsabilidad del CDBG, o esté en condiciones de participar en un proceso de toma de decisiones o obtener información privilegiada, puede obtener un interés financiero o beneficio de la actividad del CDBG. Las restricciones de conflicto de intereses y los requisitos de contratación identificados en el presente documento se aplicarán a una empresa, proveedor de servicios públicos u otra entidad externa que esté recibiendo asistencia, directa o indirectamente, en virtud de un contrato o adjudicación de CDBG, o que esté obligada a completar parte o a toda la obra en virtud del contrato CDBG para cumplir con el Objetivo nacional del Programa. Cualquier persona o entidad, incluyendo cualquier empresa beneficiada, proveedor de servicios públicos u otra entidad de terceros que esté recibiendo asistencia, directa o indirectamente, bajo un contrato o adjudicación de CDBG, o que esté obligada a completar parte o todo el trabajo bajo el contrato cdBG con el fin de cumplir con un objetivo del Programa Nacional, que potencialmente podría recibir beneficios de premios CDBG no puede participar en la selección , adjudicación o administración de un contrato respaldado por financiación del CDBG. Cualquier presunta violación de estas normas de conducta será remitida al Procurador de la Ciudad de la Ciudad de Huntsville. Cuando parezcan haberse producido violaciones, el empleado, oficial o agente infractor estará sujeto a medidas disciplinarias, incluyendo, pero no limitado a, despido o traslado; cuando las violaciones o infracciones parezcan ser de naturaleza sustancial, el asunto podrá remitirse a los funcionarios apropiados para la investigación penal y el posible enjuiciamiento. PASADO Y APROBADO enth este 18o día de agosto de 2020. _______________________________ Andy Brauninger, Alcalde Agenda Item #1d Item/Subject: Consider adoption of Ordinance 2020-40 to amend the budget for FY 19-20 and/or CIP Project budgets. Initiating Department/Presenter: Finance Presenter: Steve Ritter – Finance Director Recommended Motion: Move to adopt Ordinance 2020-40 to amend the budget for FY 19-20 and/or CIP Project budgets. Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient and fiscally sound government through conservative fiscal practices and resource management. Discussion: Detailed explanation is provided in the attachment, Exhibit A, to the Ordinance. The Budget Amendment was presented to the Finance Committee at their August 4, 2020 meeting. Previous Council Action: None. Financial Implications: ☒ See the attached Ordinance and related Budget Amendments (Exhibit A) Approvals: ☐City Attorney ☒Director of Finance ☐City Manager Associated Information: • Ordinance 2020-40, page 2 • Exhibit A (list of budget amendments), page 3 8/18/2020 Agenda Item: 1d CITY COUNCIL AGENDA ORDINANCE NO. 2020-40 AN ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING THE 2019- 2020 ANNUAL BUDGET AND CAPITAL IMPROVEMENTS PROJECTS (CIP) BUDGETS, ORDINANCE NO. 2019-52 TO AMEND ADOPTED EXPENDITURES OF THE BUDGET; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the 2019-2020 Annual Budget and CIP Budgets were adopted by Ordinance 2019-52 on September 17, 2019; WHEREAS, various unforeseen circumstances affecting the City have presented themselves during the course of the fiscal year; WHEREAS, the City Council considered the circumstances independently, deliberating appropriately on the associated revenues and expenditures and the overall impact on the general financial status of the City; WHEREAS, pursuant to the laws of the State of Texas and the City Charter of the City of Huntsville, Texas, the City Council has determined that it will be beneficial and advantageous to the citizens of the City of Huntsville to amend the annual budget for fiscal year 2019 – 2020 and the Capital Improvements Projects (CIP) budget as set forth herein; and WHEREAS, this ordinance combines the independent Council actions into one budget amendment document; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that: Section 1. The findings set forth above are incorporated into the body of this ordinance. Section 2. The annual budget for fiscal year 2019 – 2020 is hereby amended to include the expenditures and revenues in Exhibit “A” and the Capital Improvements Projects budget is hereby amended to include the expenditures described in Exhibit “A” attached hereto and made a part of this ordinance as if set out verbatim herein. Section 3. All ordinances of the City in conflict with the provisions of this ordinance are hereby repealed, and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 4. Should any section, portion, sentence, clause or phrase of this ordinance be declared unconstitutional or invalid for any reason, it shall not invalidate or impair the force or effect of any other section or portion of this ordinance. Section 5. The necessity for amending the budget for the fiscal year 2019 – 2020 and Capital Improvements Projects, as required by the laws of the State of Texas, requires that this ordinance shall take effect immediately from and after its passage, as the law in such cases provides. Section 6. This ordinance shall take effect immediately after its passage. PASSED AND APPROVED on this the 18th day of August 2020. THE CITY OF HUNTSVILLE, TEXAS __________________________________ Andy Brauninger, Mayor ATTEST: APPROVED AS TO FORM: ____________________________ _____________________________________ Brenda Poe, City Secretary Leonard Schneider, City Attorney Exhibit A Budget Amendments FY 19-20 August 18, 2020 Increase:Wastewater CIP - 10" Sewer (Southwood - Brookhollow) Ph I 36,000$ Increase:Wastewater CIP - Unallocated 36,000$ Explanation: Total budget for the Project currently is at $928,000 with a balance of $51,555. Additional work for "open cut installation of 15" PVC", "directional bore w/ 24" steel casing", "trenching and backfilling at deeper cuts", and "grout-fill and abandon of lines" created the need for the additional $36,000 of budget. Agenda Item #2a Item/Subject: Consider adopting Ordinance 2020-38 authorizing the issuance of City of Huntsville, Texas general obligation bonds, Series 2020; authorizing the levy of an ad valorem tax in support of the bonds; approving an official statement, a paying agent/registrar agreement and other related documents; awarding the sale of the bonds and authorizing other matters relating to the bonds. Initiating Department/Presenter: Finance Presenter: Steve Ritter – Finance Director Recommended Motion: Move to adopt Ordinance 2020-38 authorizing the issuance of City of Huntsville, Texas general obligation bonds, Series 2020; authorizing the levy of an ad valorem tax in support of the bonds; approving an official statement, a paying agent/registrar agreement and other related documents; awarding the sale of the bonds and authorizing other matters relating to the bonds. Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient and fiscally sound government through conservative fiscal practices and resource management. Discussion: This agenda item authorizes the sale of the Proposition No. 2, Series 2020 General Obligation Bonds for the Service Center and City Hall facilities. Various amounts in this Ordinance as provided to Council on August 14, 2020 in the agenda packet will be revised based on the actual sale of the bonds the morning of August 18, 2020. Council will receive an updated version of the Ordinance the evening of August 18, 2020 for approval with amounts and terms of the actual sale of the Bonds. Previous Council Action: None. Financial Implications: Issuing these Series 2020 General Obligation Bonds will provide funds for Service Center and City Hall facilities projects totaling approximately $20,000,000 and cover issuance costs of approximately $325,000. Approvals: ☐City Attorney ☒Director of Finance ☒City Manager Associated Information: • Ordinance 2020-38 with Exhibit A (pages 2 – 34) • McCall, Parkhurst & Horton, Memo 8/18/2020, approval as to form of Ordinance (pg. 35) 8/18/2020 Agenda Item: 2a CITY COUNCIL AGENDA HUNTSVILLE\GO\20: Ordinance ORDINANCE NO. 2020-38 ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF HUNTSVILLE, TEXAS GENERAL OBLIGATION BONDS, SERIES 2020; AUTHORIZING THE LEVY OF AN AD VALOREM TAX IN SUPPORT OF THE BONDS; APPROVING AN OFFICIAL STATEMENT, A PAYING AGENT/REGISTRAR AGREEMENT AND OTHER RELATED DOCUMENTS; AWARDING THE SALE OF THE BONDS AND AUTHORIZING OTHER MATTERS RELATING TO THE BONDS Adopted August 18, 2020 HUNTSVILLE\GO\19: Ordinance Table of Contents Page Recitals .............................................................................................................................................1 Section 1. RECITALS, AMOUNT AND PURPOSE OF THE BONDS .....................................2 Section 2. DESIGNATION, DATE, DENOMINATIONS, NUMBERS, AND MATURITIES OF BONDS .........................................................................................2 Section 3. INTEREST ...................................................................................................................3 Section 4. CHARACTERISTICS OF THE BONDS ....................................................................3 Section 5. FORM OF BOND ........................................................................................................7 Section 6. TAX LEVY ................................................................................................................14 Section 7. DEFEASANCE OF BONDS .....................................................................................15 Section 8. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS ......................................................................................................................16 Section 9. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS; BOND COUNSEL'S OPINION; CUSIP NUMBERS AND CONTINGENT INSURANCE PROVISION, IF OBTAINED.................................17 Section 10. COVENANTS REGARDING TAX EXEMPTION OF INTEREST ON THE BONDS ......................................................................................................17 Section 11. SALE OF BONDS .....................................................................................................20 Section 12. DEFAULT AND REMEDIES ...................................................................................20 Section 13. INTEREST EARNINGS ON BOND PROCEEDS ...................................................21 Section 14. APPROVAL OF PAYING AGENT/REGISTRAR AGREEMENT, LETTER OF REPRESENTATIONS AND OFFICIAL STATEMENT ...................21 Section 15. CONTINUING DISCLOSURE UNDERTAKING ...................................................22 Section 16. AMENDMENT OF ORDINANCE. ..........................................................................25 Section 17. NO RECOURSE AGAINST CITY OFFICIALS. .....................................................27 Section 18. FURTHER ACTIONS. ..............................................................................................27 Section 19. INTERPRETATIONS ...............................................................................................27 Section 20. INCONSISTENT PROVISIONS. .............................................................................28 Section 21. INTERESTED PARTIES ..........................................................................................28 Section 22. INCORPORATION OF RECITALS .........................................................................28 Section 23. SEVERABILITY .......................................................................................................28 Section 24. REPEALER. ..............................................................................................................28 Section 25. EFFECTIVE DATE. ..................................................................................................28 Section 26. PERFECTION. ..........................................................................................................28 Section 27. PAYMENT OF ATTORNEY GENERAL FEE. .......................................................28 Exhibit A - Description of Annual Financial Information HUNTSVILLE\GO\19: Ordinance ORDINANCE NO. 2020-38 ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF HUNTSVILLE, TEXAS GENERAL OBLIGATION BONDS, SERIES 2020; AUTHORIZING THE LEVY OF AN AD VALOREM TAX IN SUPPORT OF THE BONDS; APPROVING AN OFFICIAL STATEMENT, A PAYING AGENT/REGISTRAR AGREEMENT AND OTHER RELATED DOCUMENTS; AWARDING THE SALE OF THE BONDS AND AUTHORIZING OTHER MATTERS RELATING TO THE BONDS THE STATE OF TEXAS ' COUNTY OF WALKER ' CITY OF HUNTSVILLE ' WHEREAS, at an election held within the City on November 8, 2016 the voters of the City authorized the City Council of the City to issue in one or more series the bonds set forth in the proposition set forth below: PROPOSITION NO. 2 Shall the City Council of the City of Huntsville, Texas, be authorized to issue the bonds of the City, in one or more series or issues, in the aggregate principal amount not to exceed $24,000,000 with the bonds of each such series or issues, respectively, to mature serially within not to exceed thirty years from their date, and to be sold at such prices and bear interest at such rates, as shall be determined within the discretion of the City Council, in accordance with law at the time of issuance, for the purpose of a City Services Facilities Project to include demolition, construction, renovation and equipping a new City Service Center at the existing site and relocation of certain city services to City Hall, including related water, wastewater, drainage, streets, sidewalks, parking infrastructure and other related costs; and shall said City Council be authorized to levy and cause to be assessed and collected annual ad valorem taxes on all taxable property in the City in an amount sufficient to pay the annual interest on said bonds and provide a sinking fund to pay the bonds at maturity? WHEREAS, the City Council deems it to be in the best interest of the City to issue $18,755,000 aggregate principal amount of the November 8, 2016 Proposition 2 bond election authorization; and WHEREAS, it is hereby officially found and determined that the meeting at which this Ordinance was passed was open to the public, and public notice of the time, place and purpose of the meeting was given, all as required by Chapter 551, Texas Government Code. HUNTSVILLE\GO\20: Ordinance 2 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS: Section 1. RECITALS, AMOUNT AND PURPOSE OF THE BONDS AND VISION STATEMENT. (a) Recitals, Amount and Purpose. The recitals set forth in the preamble hereof are incorporated herein and shall have the same force and effect as if set forth in this section. The Bond or Bonds of the City are hereby authorized to be issued pursuant to Chapter 1331, Texas Government Code, as amended and Proposition 2 of the November 8, 2016 bond election. The Bonds shall be delivered in the aggregate principal amount of $18,755,000 for the purpose of: (i) a City Services Facilities Project to include demolition, construction, renovation and equipping a new City Service Center at the existing site and relocation of certain city services to City Hall, including related water, wastewater, drainage, streets, sidewalks, parking infrastructure and other related costs as authorized by the voters in Proposition 2 of the November 8, 2016 bond election; and (ii) paying the costs of issuing the Bonds. Section 2. DESIGNATION, DATE, DENOMINATIONS, NUMBERS AND MATURITIES OF BONDS. Each bond issued pursuant to this Ordinance shall be designated: "CITY OF HUNTSVILLE, TEXAS GENERAL OBLIGATION BOND, SERIES 2020" and initially there shall be issued, sold, and delivered hereunder fully registered bonds, without interest coupons, dated September 15, 2020, in the respective denominations and principal amounts hereinafter stated, numbered consecutively from R-1 upward (except the Initial Bond submitted to the Attorney General of the State of Texas which will be numbered T-1), payable to the respective initial registered owners thereof (as designated in Section 11 hereof), or to the registered assignee or assignees of the Bonds or any portion or portions thereof (in each case, the "Registered Owner"), and the Bonds shall mature and be payable serially on August 15 in each of the years and in the principal amounts, respectively, as set forth in the following schedule: YEAR AMOUNT YEAR AMOUNT 2021 $ 2036 $ 2022 2037 2023 2038 2024 2039 2025 2040 2026 2041 2027 2042 2028 2043 2029 2044 2030 2045 2031 2046 2032 2047 2033 2048 2034 2049 2035 2050 The term "Bonds" as used in this Ordinance shall mean and include collectively the bonds initially issued and delivered pursuant to this Ordinance and all substitute bonds exchanged therefor, as HUNTSVILLE\GO\20: Ordinance 3 well as all other substitute bonds and replacement bonds issued pursuant hereto, and the term "Bond" shall mean any of the Bonds. Section 3. INTEREST. The Bonds scheduled to mature during the years, respectively, set forth below shall bear interest from the dates specified in the FORM OF BOND set forth in this Ordinance to their respective dates of maturity at the following rates per annum: YEAR RATE YEAR RATE 2021 % 2036 % 2022 2037 2023 2038 2024 2039 2025 2040 2026 2041 2027 2042 2028 2043 2029 2044 2030 2045 2031 2046 2032 2047 2033 2048 2034 2049 2035 2050 Interest shall be payable in the manner provided and on the dates stated in the FORM OF BOND set forth in this Ordinance. Section 4. CHARACTERISTICS OF THE BONDS. (a) Registration, Transfer, Conversion and Exchange; Authentication. The City shall keep or cause to be kept at ZB, National Association dba Amegy Bank in Houston, Texas (the "Paying Agent/Registrar") books or records for the registration of the transfer, conversion and exchange of the Bonds (the "Registration Books"), and the City hereby appoints the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records and make such registrations of transfers, conversions and exchanges under such reasonable regulations as the City and Paying Agent/Registrar may prescribe; and the Paying Agent/Registrar shall make such registrations, transfers, conversions and exchanges as herein provided within three days of presentation in due and proper form. The Paying Agent/Registrar shall obtain and record in the Registration Books the address of the Registered Owner of each Bond to which payments with respect to the Bonds shall be mailed, as herein provided; but it shall be the duty of each Registered Owner to notify the Paying Agent/Registrar in writing of the address to which payments shall be mailed, and such interest payments shall not be mailed unless such notice has been given. The City shall have the right to inspect the Registration Books during regular business hours of the Paying Agent/Registrar, but otherwise the Paying Agent/Registrar shall keep the Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity. The Paying Agent/Registrar shall make a copy of the Registration Books available in the State of Texas. The City shall pay the Paying Agent/Registrar's standard or customary fees and charges for making such registration, transfer, conversion, exchange and delivery of a substitute Bond or Bonds. Registration of HUNTSVILLE\GO\20: Ordinance 4 assignments, transfers, conversions and exchanges of Bonds shall be made in the manner provided and with the effect stated in the FORM OF BOND set forth in this Ordinance. Each substitute Bond shall bear a letter and/or number to distinguish it from each other Bond. Except as provided in Section 4(c) hereof, an authorized representative of the Paying Agent/Registrar shall, before the delivery of any such Bond, date and manually sign the Bond, and no such Bond shall be deemed to be issued or outstanding unless such Bond is so executed. The Paying Agent/Registrar promptly shall cancel all paid Bonds and Bonds surrendered for conversion and exchange. No additional ordinances, orders, or resolutions need be passed or adopted by the governing body of the City or any other body or person so as to accomplish the foregoing conversion and exchange of any Bond or portion thereof, and the Paying Agent/Registrar shall provide for the printing, execution, and delivery of the substitute Bonds in the manner prescribed herein, and the Bonds shall be of type composition printed on paper with lithographed or steel engraved borders of customary weight and strength. Pursuant to Chapter 1206, Texas Government Code, as amended, and particularly Subchapter B thereof, the duty of conversion and exchange of Bonds as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of the Bond, the converted and exchanged Bond shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Bonds which initially were issued and delivered pursuant to this Ordinance, approved by the Attorney General, and registered by the Comptroller of Public Accounts. (b) Payment of Bonds and Interest. The City hereby further appoints the Paying Agent/Registrar to act as the paying agent for paying the principal of and interest on the Bonds, all as provided in this Ordinance. The Paying Agent/Registrar shall keep proper records of all payments made by the City and the Paying Agent/Registrar with respect to the Bonds, and of all conversions and exchanges of Bonds, and all replacements of Bonds, as provided in this Ordinance. However, in the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first-class postage prepaid, to the address of each Registered Owner appearing on the Registration Books at the close of business on the last business day next preceding the date of mailing of such notice. (c) In General. The Bonds (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest on such Bonds to be payable only to the Registered Owners thereof, (ii) may be transferred and assigned, (iii) may be converted and exchanged for other Bonds, (iv) shall have the characteristics, (v) shall be signed, sealed, executed and authenticated, (vi) the principal of and interest on the Bonds shall be payable, and (vii) shall be administered and the Paying Agent/Registrar and the City shall have certain duties and responsibilities with respect to the Bonds, all as provided, and in the manner and to the effect as required or indicated, in the FORM OF BOND set forth in this Ordinance. The Bonds initially issued and delivered pursuant to this Ordinance are not required to be, and shall not be, authenticated by the Paying Agent/Registrar, but on each substitute Bond issued in conversion of and exchange for any Bond or Bonds issued under this Ordinance the Paying Agent/Registrar shall HUNTSVILLE\GO\20: Ordinance 5 execute the PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE, in the form set forth in the FORM OF BOND. (d) Substitute Paying Agent/Registrar. The City covenants with the Registered Owners of the Bonds that at all times while the Bonds are outstanding the City will provide a competent and legally qualified bank, trust company, financial institution, or other agency to act as and perform the services of Paying Agent/Registrar for the Bonds under this Ordinance, and that the Paying Agent/Registrar will be one entity. The City reserves the right to, and may, at its option, change the Paying Agent/Registrar upon not less than 30 days written notice to the Paying Agent/Registrar, to be effective at such time which will not disrupt or delay payment on the next principal or interest payment date after such notice. In the event that the entity at any time acting as Paying Agent/Registrar (or its successor by merger, acquisition, or other method) should resign or otherwise cease to act as such, the City covenants that promptly it will appoint a competent and legally qualified bank, trust company, financial institution, or other agency to act as Paying Agent/Registrar under this Ordinance. Upon any change in the Paying Agent/Registrar, the previous Paying Agent/Registrar promptly shall transfer and deliver the Registration Books (or a copy thereof), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent/Registrar designated and appointed by the City. Upon any change in the Paying Agent/Registrar, the City promptly will cause a written notice thereof to be sent by the new Paying Agent/Registrar to each Registered Owner of the Bonds, by United States mail, first-class postage prepaid, which notice also shall give the address of the new Paying Agent/Registrar. By accepting the position and performing as such, each Paying Agent/Registrar shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying Agent/Registrar. (e) Book-Entry-Only System. The Bonds issued in exchange for the Bonds initially issued as provided in Section 4(h) shall be issued in the form of a separate single fully registered Bond for each of the maturities thereof registered in the name of Cede & Co., as nominee of The Depository Trust Company of New York ("DTC") and except as provided in subsection (f) hereof, all of the outstanding Bonds shall be registered in the name of Cede & Co., as nominee of DTC. With respect to Bonds registered in the name of Cede & Co., as nominee of DTC, the City and the Paying Agent/Registrar shall have no responsibility or obligation to any securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations on whose behalf DTC was created to hold securities to facilitate the clearance and settlement of securities transactions among DTC participants (the "DTC Participant") or to any person on behalf of whom such a DTC Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than a Registered Owner, as shown on the Registration Books, of any notice with respect to the Bonds, or (iii) the payment to any DTC Participant or any person, other than a Registered Owner, as shown on the Registration Books of any amount with respect to principal of or interest on the Bonds. Notwithstanding any other provision of this Ordinance to the contrary, but to the extent permitted by law, the City and the Paying Agent/Registrar shall be entitled to treat and consider the person in whose name each Bond is registered in the Registration Books as the absolute owner of such Bond for the purpose of payment HUNTSVILLE\GO\20: Ordinance 6 of principal of and interest, with respect to such Bond, for the purposes of registering transfers with respect to such Bond, and for all other purposes of registering transfers with respect to such Bonds, and for all other purposes whatsoever. The Paying Agent/Registrar shall pay all principal of and interest on the Bonds only to or upon the order of the respective Registered Owners, as shown in the Registration Books as provided in this Ordinance, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to payment of principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than a Registered Owner, as shown in the Registration Books, shall receive a Bond evidencing the obligation of the City to make payments of principal, and interest pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks being mailed to the registered owner at the close of business on the Record Date the word "Cede & Co." in this Ordinance shall refer to such new nominee of DTC. (f) Successor Securities Depository; Transfer Outside Book-Entry-Only System. In the event that the City determines to discontinue the book-entry system through DTC or a successor or DTC determines to discontinue providing its services with respect to the Bond, the City shall either (i) appoint a successor securities depository, qualified to act as such under Section 17(a) of the Securities and Exchange Act of 1934, as amended, notify DTC and DTC Participants of the appointment of such successor securities depository and transfer one or more separate Bonds to such successor securities depository or (ii) notify DTC and DTC Participants of the availability through DTC of Bonds and transfer one or more separate Bonds to DTC Participants having Bonds credited to their DTC accounts. In such event, the Bonds shall no longer be restricted to being registered in the Registration Books in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names the Registered Owner transferring or exchanging Bond shall designate, in accordance with the provisions of this Ordinance. (g) Payments to Cede & Co. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, in the manner provided in the Letter of Representations of the City to DTC. (h) DTC Blanket Letter of Representations. The City confirms execution of a Blanket Issuer Letter of Representations with DTC establishing the Book-Entry-Only System which will be utilized with respect to the Bonds. (i) Cancellation of Initial Bond. On the closing date, one Initial Bond representing the entire principal amount of the Bonds, payable in stated installments to the order of the purchaser of the Bonds or its designee set forth in Section 11 of this Ordinance, executed by manual or facsimile signature of the Mayor or Mayor Pro-Tem and City Secretary, approved by the Attorney General of Texas, and registered and manually signed by the Comptroller of Public Accounts of the State of Texas, will be delivered to such initial purchaser set forth in Section 11 of this Ordinance or its designee. Upon payment for the Initial Bond, the Paying Agent/Registrar shall cancel the Initial Bond and deliver to DTC on behalf of such purchaser one registered definitive HUNTSVILLE\GO\20: Ordinance 7 Bond for each year of maturity of the Bonds, in the aggregate principal amount of all the Bonds for such maturity. Section 5. FORM OF BOND. The form of the Bond, including the form of Paying Agent/Registrar's Authentication Certificate, the form of Assignment, the form of initial Bond and the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be attached to the Bonds initially issued and delivered pursuant to this Ordinance, shall be, respectively, substantially as follows, with such appropriate variations, omissions, or insertions as are permitted or required by this Ordinance including any reproduction of an opinion of counsel and information regarding the issuance of any bond insurance policy. FORM OF BOND NO. R- UNITED STATES OF AMERICA PRINCIPAL STATE OF TEXAS AMOUNT WALKER COUNTY $__________ CITY OF HUNTSVILLE, TEXAS GENERAL OBLIGATION BOND, SERIES 2020 INTEREST RATE DATE OF BOND MATURITY DATE CUSIP NO. September 15, 2020 REGISTERED OWNER: PRINCIPAL AMOUNT: ON THE MATURITY DATE specified above, HUNTSVILLE, TEXAS (the "City"), being a political subdivision of the State of Texas, hereby promises to pay to the Registered Owner set forth above, or registered assigns (hereinafter called the "Registered Owner") the principal amount set forth above, and to pay interest thereon from the initial date of delivery of the Bonds, on February 15, 2021 and semiannually thereafter on each August 15 and February 15 to the maturity date specified above, or the date of redemption prior to maturity, at the interest rate per annum specified above calculated on the basis of a 360-day year of twelve 30-day months; except that if this Bond is required to be authenticated and the date of its authentication is after any Record Date (hereinafter defined) but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date; provided, however, that if on the date of authentication hereof the interest on the Bond or Bonds, if any, for which this Bond is being exchanged or converted from is due but has not been paid, then this Bond shall bear interest from the date to which such interest has been paid in full. Notwithstanding the foregoing, during any period in which ownership of the Bonds is determined only by a book entry at a securities depository for the Bonds, any payment to the securities depository, or its nominee or registered assigns, shall be made in accordance with existing arrangements between the City and the securities depository. HUNTSVILLE\GO\20: Ordinance 8 THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Bond shall be paid to the Registered Owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption prior to maturity, at ZB, National Association dba Amegy Bank, (the "Paying Agent/Registrar") at their office for payment in Houston, Texas (the "Designated Payment/Transfer Office"). The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the Registered Owner hereof on each interest payment date by check or draft, dated as of such interest payment date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the City required by the ordinance authorizing the issuance of this Bond (the "Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such check or draft shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, on each such interest payment date, to the Registered Owner hereof, at its address as it appeared on the close of business on the last business day of the month next preceding each such date (the "Record Date") on the registration books kept by the Paying Agent/Registrar (the "Registration Books"). In addition, interest may be paid by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Registered Owner. In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first-class postage prepaid, to the address of each owner of a Bond appearing on the Registration Books at the close of business on the last business day next preceding the date of mailing of such notice. DURING ANY PERIOD in which ownership of the Bonds is determined only by a book entry at a securities depository for the Bonds, if fewer than all of the Bonds of the same maturity and bearing the same interest rate are to be redeemed, the particular Bonds of such maturity and bearing such interest rate shall be selected in accordance with the arrangements between the City and the securities depository. ANY ACCRUED INTEREST due at maturity as provided herein shall be paid to the Registered Owner upon presentation and surrender of this Bond for payment at the Designated Payment/Transfer Office of the Paying Agent/Registrar. The City covenants with the Registered Owner of this Bond that on or before each payment date for this Bond it will make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" created by the Ordinance, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the Bonds, when due. IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the principal corporate trust office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. HUNTSVILLE\GO\20: Ordinance 9 THIS BOND is one of a series of Bonds dated September 15, 2020, authorized in accordance with the Constitution and laws of the State of Texas in the aggregate principal amount of $18,755,000 FOR THE PURPOSE OF: (I) A CITY SERVICES FACILITIES PROJECT TO INCLUDE DEMOLITION, CONSTRUCTION, RENOVATION AND EQUIPPING A NEW CITY SERVICE CENTER AT THE EXISTING SITE AND RELOCATION OF CERTAIN CITY SERVICES TO CITY HALL, INCLUDING RELATED WATER, WASTEWATER, DRAINAGE, STREETS, SIDEWALKS, PARKING INFRASTRUCTURE AND OTHER RELATED COSTS AS AUTHORIZED BY THE VOTERS IN PROPOSITION 2 OF THE NOVEMBER 8, 2016 BOND ELECTION; AND (II) PAYING THE COSTS OF ISSUING THE BONDS. ON AUGUST 15, 2029, or on any date thereafter, the Bonds of this Series maturing on and after August 15, 2030 may be redeemed prior to their scheduled maturities, at the option of the City, with funds derived from any available and lawful source, at par plus accrued interest to the date fixed for redemption as a whole, or from time to time in part, and, if in part, the particular maturities, or sinking fund installments in the case of Term Bonds, to be redeemed shall be selected and designated by the City and if less than all of a maturity, or sinking fund installments in the case of Term Bonds, is to be redeemed, the Paying Agent/Registrar shall determine by lot or other customary random method the Bonds, or a portion thereof, within such maturity, or sinking fund installments in the case of Term Bonds, to be redeemed (provided that a portion of a Bond may be redeemed only in an integral multiple of $5,000). THE BONDS maturing on August 15, 20__ (the "Term Bonds") are subject to mandatory sinking fund redemption prior to maturity in the following amounts, on the following dates and at a price of par plus accrued interest to the redemption date. Bonds Maturing August 15, 20__ Redemption Date Principal Amount August 15, 20__ $ August 15, 20__* *Final Maturity THE PRINCIPAL AMOUNT of the Term Bonds required to be redeemed pursuant to the operation of the mandatory sinking fund redemption provisions shall be reduced, at the option of the City by the principal amount of any Term Bonds of the stated maturity which, at least 50 days prior to a mandatory redemption date, (1) shall have been acquired by the City, at a price not exceeding the principal amount of such Term Bonds plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and canceled by the Paying Agent/Registrar at the request of the City with monies in the Interest and Sinking Fund at a price not exceeding the principal amount of the Term Bonds plus accrued interest to the date of purchase thereof, or (3) shall have been redeemed pursuant to the optional redemption provisions and not theretofore credited against a mandatory sinking fund redemption requirement. HUNTSVILLE\GO\20: Ordinance 10 NO LESS THAN 30 days prior to the date fixed for any optional redemption, the City shall cause the Paying Agent/Registrar to send notice by United States mail, first-class postage prepaid to the Registered Owner of each Bond to be redeemed at its address as it appeared on the Registration Books of the Paying Agent/Registrar at the close of business on the 45th day prior to the redemption date; provided, however, that the failure to send, mail or receive such notice, or any defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any Bonds. By the date fixed for any such redemption due provision shall be made with the Paying Agent/Registrar for the payment of the required redemption price for the Bonds or portions thereof which are to be so redeemed. If due provision for such payment is made, all as provided above, the Bonds or portions thereof which are to be so redeemed thereby automatically shall be treated as redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right of the Registered Owner to receive the redemption price from the Paying Agent/Registrar out of the funds provided for such payment. If a portion of any Bonds shall be redeemed a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the Registered Owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the Registered Owner upon the surrender thereof for cancellation, at the expense of the City, all as provided in the Ordinance. WITH RESPECT TO any optional redemption of the Bonds, unless certain prerequisites to such redemption required by the Ordinance have been met and moneys sufficient to pay the principal of and premium, if any, and interest on the Bonds to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice shall state that said redemption may, at the option of the City, be conditional upon the satisfaction of such prerequisites and receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such redemption, or upon any prerequisite set forth in such notice of redemption. If a conditional notice of redemption is given and such prerequisites to the redemption and sufficient moneys are not received, such notice shall be of no force and effect, the City shall not redeem such Bonds and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Bonds have not been redeemed. ALL BONDS OF THIS SERIES are issuable solely as fully registered Bonds, without interest coupons, in the denomination of any integral multiple of $5,000. As provided in the Ordinance, this Bond, or any unredeemed portion hereof, may, at the request of the Registered Owner or the assignee or assignees hereof, be assigned, transferred, converted into and exchanged for a like aggregate principal amount of fully registered Bonds, without interest coupons, payable to the appropriate Registered Owner, assignee or assignees, as the case may be, having the same denomination or denominations in any integral multiple of $5,000 as requested in writing by the appropriate Registered Owner, assignee or assignees, as the case may be, upon surrender of this Bond to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Ordinance. Among other requirements for such assignment and transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment of this Bond or any portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be registered. The form of Assignment printed or HUNTSVILLE\GO\20: Ordinance 11 endorsed on this Bond may be executed by the Registered Owner to evidence the assignment hereof, but such method is not exclusive, and other instruments of assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Bond or any portion or portions hereof from time to time by the Registered Owner. The Paying Agent/Registrar's reasonable standard or customary fees and charges for assigning, transferring, converting and exchanging any Bond or portion thereof will be paid by the City. In any circumstance, any taxes or governmental charges required to be paid with respect thereto shall be paid by the one requesting such assignment, transfer, conversion or exchange, as a condition precedent to the exercise of such privilege. The Paying Agent/Registrar shall not be required to make any such transfer, conversion, or exchange during the period commencing on the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date. WHENEVER the beneficial ownership of this Bond is determined by a book entry at a securities depository for the Bonds, the foregoing requirements of holding, delivering or transferring this Bond shall be modified to require the appropriate person or entity to meet the requirements of the securities depository as to registering or transferring the book entry to produce the same effect. IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the City, resigns, or otherwise ceases to act as such, the City has covenanted in the Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and cause written notice thereof to be mailed to the Registered Owners of the Bonds. IT IS HEREBY certified, recited, and covenanted that this Bond 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 authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; and that ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Bond, as such interest comes due, and as such principal matures, have been levied and ordered to be levied against all taxable property in the City, and have been pledged for such payment, within the limit prescribed by law. BY BECOMING the Registered Owner of this Bond, the Registered Owner thereby acknowledges all of the terms and provisions of the Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the City, and agrees that the terms and provisions of this Bond and the Ordinance constitute a contract between each Registered Owner hereof and the City. IN WITNESS WHEREOF, the City has caused this Bond to be signed with the manual or facsimile signature of the Mayor or Mayor Pro-Tem of the City and countersigned with the manual or facsimile signature of the City Secretary and has caused the official seal of the City to be duly impressed, or placed in facsimile, on this Bond. _______________________________ ___________________________________ City Secretary Mayor [Mayor Pro-Tem] HUNTSVILLE\GO\20: Ordinance 12 [CITY SEAL] FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE (To be executed if this Bond is not accompanied by an executed Registration Certificate of the Comptroller of Public Accounts of the State of Texas) It is hereby certified that this Bond has been issued under the provisions of the Ordinance described in the text of this Bond; and that this Bond has been issued in conversion or replacement of, or in exchange for, a Bond, Bonds, or a portion of a Bond or Bonds of a Series which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. Dated: ZB, National Association dba Amegy Bank Paying Agent/Registrar By_______________________________ Authorized Representative FORM OF ASSIGNMENT ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ________________________________________________________________________ ________________________________________________________________________ Please insert Social Security or Taxpayer Identification Number of Transferee _______________________________________________________________________ _______________________________________________________________________ (Please print or typewrite name and address, including zip code, of Transferee) ______________________________________________________________________ the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints ___________________________________________, attorney, to register the transfer of the within Bond on the books kept for registration thereof, with full power of substitution in the premises. HUNTSVILLE\GO\20: Ordinance 13 Dated: ___________________________ Signature Guaranteed: __________________________________ __________________________________ NOTICE: Signature(s) must be NOTICE: The signature above guaranteed by a member firm of must correspond with the name the New York Stock Exchange or of the Registered Owner as it a commercial bank or trust company. appears upon the front of this Bond in every particular, with- out alteration or enlargement or any change whatsoever. FORM OF REGISTRATION CERTIFICATE OF THE COMPTROLLER OF PUBLIC ACCOUNTS FOR THE INITIAL BOND ONLY: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Bond has been approved by the Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this ____________________. Comptroller of Public Accounts of the State of Texas [COMPTROLLER'S SEAL] INSERTIONS FOR THE INITIAL BOND The Initial Bond shall be in the form set forth in this Section, except that: A. immediately under the name of the Bond, the headings "INTEREST RATE" and "MATURITY DATE" shall both be completed with the words "As shown below" and "CUSIP NO." shall be deleted. B. the first paragraph shall be deleted and the following will be inserted: "ON THE MATURITY DATE SPECIFIED BELOW, the City of Huntsville, Texas (the "City"), being a political subdivision, hereby promises to pay to the Registered Owner specified above, or registered assigns (hereinafter called the "Registered Owner"), in each of the years on August 15 in the principal installments and bearing interest at the per annum rates set forth in the following schedule: HUNTSVILLE\GO\20: Ordinance 14 Year Amount Rate (Information from Sections 2 and 3 to be inserted) The City promises to pay interest on the unpaid principal amount hereof (calculated on the basis of a 360-day year of twelve 30-day months) from the initial date of delivery of the Bonds at the respective Interest Rate per annum specified above. Interest is payable on February 15, 2021 and semiannually on each August 15 and February 15 thereafter to the date of payment of the principal installment specified above; except, that if this Bond is required to be authenticated and the date of its authentication is any Record Date (hereinafter defined) but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date; provided, however, that if on the date of authentication hereof the interest on the Bond or Bonds, if any, for which this Bond is being exchanged is due but has not been paid, then this Bond shall bear interest from the date to which such interest has been paid in full." C. The initial Bond shall be numbered "T-1." Section 6. TAX LEVY. (a) Payment of the Bonds. A special Interest and Sinking Fund (the "Interest and Sinking Fund") is hereby created solely for the benefit of the Bonds, and the Interest and Sinking Fund shall be established and maintained by the City at an official depository bank of the City. The Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of the City and shall be used only for paying the interest on and principal of the Bonds. All ad valorem taxes levied and collected for and on account of the Bonds shall be deposited, as collected, to the credit of the Interest and Sinking Fund. During each year while any of the Bonds or interest thereon are outstanding and unpaid, the governing body of the City shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient, within the limit prescribed by law, to raise and produce the money required to pay the interest on the Bonds as such interest comes due, and to provide and maintain a sinking fund adequate to pay the principal of the Bonds as such principal matures (but never less than 2% of the original principal amount of the Bonds as a sinking fund each year); and the 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. The rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in the City for each year while any of the Bonds or interest thereon are outstanding and unpaid; and the tax shall be assessed and collected each such year and deposited to the credit of the Interest and Sinking Fund. The ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Bonds, as such interest comes due and such principal matures, are hereby pledged for such payment, within the limit prescribed by law. Accrued interest on the Bonds on their date of initial delivery, if any, shall be deposited in the Interest and Sinking Fund. (b) Appropriation of Available Funds. There is hereby appropriated from funds of the City lawfully available for such purpose a sum sufficient to pay the interest and/or principal to become due on the Bonds, if any, prior to receipt of applicable ad valorem tax receipts. HUNTSVILLE\GO\20: Ordinance 15 Section 7. DEFEASANCE OF BONDS (a) Any Bond and the interest thereon shall be deemed to be paid, retired and no longer outstanding (a "Defeased Bond") within the meaning of this Ordinance, except to the extent provided in subsections (c) and (e) of this Section, when payment of the principal of such Bond, plus interest thereon to the due date or dates (whether such due date or dates be by reason of maturity, upon redemption, or otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof (including the giving of any required notice of redemption or the establishment of irrevocable provisions for the giving of such notice) or (ii) shall have been provided for on or before such due date by irrevocably depositing with or making available to the Paying Agent/Registrar or an eligible trust company or commercial bank for such payment (1) lawful money of the United States of America sufficient to make such payment, (2) Defeasance Securities, certified by an independent public accounting firm of national reputation to mature as to principal and interest in such amounts and at such times as will ensure the availability, without reinvestment, of sufficient money to provide for such payment and when proper arrangements have been made by the City with the Paying Agent/Registrar or an eligible trust company or commercial bank for the payment of its services until all Defeased Bonds shall have become due and payable or (3) any combination of (1) and (2). At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as aforesaid, such Bond and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits of, the ad valorem taxes herein levied as provided in this Ordinance, and such principal and interest shall be payable solely from such money or Defeasance Securities and thereafter the City will have no further responsibility with respect to amounts available to such Paying Agent/Registrar (or other financial institution permitted by applicable law) for the payment of such Defeased Bond, including any insufficiency therein caused by the failure of the Paying Agent/Registrar (or other financial institution permitted by law) to receive payment when due on the Defeasance Securities. (b) The deposit under clause (ii) of subsection (a) shall be deemed a payment of a Bond as aforesaid when proper notice of redemption of such Bonds shall have been given or upon the establishment of irrevocable provisions for the giving of such notice, in accordance with this Ordinance. Any money so deposited with the Paying Agent/Registrar or an eligible trust company or commercial bank as provided in this Section may at the discretion of the City also be invested in Defeasance Securities, maturing in the amounts and at the times as hereinbefore set forth, and all income from all Defeasance Securities in possession of the Paying Agent/Registrar or an eligible trust company or commercial bank pursuant to this Section which is not required for the payment of such Bond and premium, if any, and interest thereon with respect to which such money has been so deposited, shall be remitted to the City. (c) Notwithstanding any provision of any other Section of this Ordinance which may be contrary to the provisions of this Section, all money or Defeasance Securities set aside and held in trust pursuant to the provisions of this Section for the payment of principal of the Bonds and premium, if any, and interest thereon, shall be applied to and used solely for the payment of the particular Bonds and premium, if any, and interest thereon, with respect to which such money or Defeasance Securities have been so set aside in trust. Until all Defeased Bonds shall have become due and payable, the Paying Agent/Registrar shall perform the services of Paying Agent/Registrar for such Defeased Bonds the same as if they had not been defeased, and the City shall make proper arrangements to provide and pay for such services as required by this Ordinance. (d) Notwithstanding anything elsewhere in this Ordinance, if money or Defeasance Securities have been deposited or set aside with the Paying Agent/Registrar or an eligible trust HUNTSVILLE\GO\20: Ordinance 16 company or commercial bank pursuant to this Section for the payment of Bonds and such Bonds shall not have in fact been actually paid in full, no amendment of the provisions of this Section shall be made without the consent of the registered owner of each Bond affected thereby. (e) Notwithstanding the provisions of subsection (a) immediately above, to the extent that, upon the defeasance of any Defeased Bond to be paid at its maturity, the City retains the right under Texas law to later call that Defeased Bond for redemption in accordance with the provisions of this Ordinance, the City may call such Defeased Bond for redemption upon complying with the provisions of Texas law and upon the satisfaction of the provisions of subsection (a) immediately above with respect to such Defeased Bond as though it was being defeased at the time of the exercise of the option to redeem the Defeased Bond and the effect of the redemption is taken into account in determining the sufficiency of the provisions made for the payment of the Defeased Bond. As used herein, "Defeasance Securities" means (i) Federal Securities and (ii) noncallable obligations of an agency or instrumentality of the United States of America, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the City adopts or approves proceedings authorizing the issuance of refunding bonds or otherwise provide for the funding of an escrow to effect the defeasance of the Bonds are rated as to investment quality by a nationally recognized investment rating firm not less than "AAA" or its equivalent. "Federal Securities" as used herein means direct, noncallable obligations of the United States of America, including obligations that are unconditionally guaranteed by the United States of America. Section 8. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS. (a) Replacement Bonds. In the event any outstanding Bond is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new Bond of the same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in the manner hereinafter provided. (b) Application for Replacement Bonds. Application for replacement of damaged, mutilated, lost, stolen, or destroyed Bonds shall be made by the Registered Owner thereof to the Paying Agent/Registrar. In every case of loss, theft, or destruction of a Bond, the Registered Owner applying for a replacement bond shall furnish to the City and to the Paying Agent/Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or destruction of a Bond, the Registered Owner shall furnish to the City and to the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the case may be. In every case of damage or mutilation of a Bond, the Registered Owner shall surrender to the Paying Agent/Registrar for cancellation the Bond so damaged or mutilated. (c) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in the event any such Bond shall have matured, and no default has occurred which is then continuing in the payment of the principal of, redemption premium, if any, or interest on the Bond, the City may authorize the payment of the same (without surrender thereof except in the case of a damaged or HUNTSVILLE\GO\20: Ordinance 17 mutilated Bond) instead of issuing a replacement Bond, provided security or indemnity is furnished as above provided in this Section. (d) Charge for Issuing Replacement Bonds. Prior to the issuance of any replacement Bond, the Paying Agent/Registrar shall charge the Registered Owner of such Bond with all legal, printing, and other expenses in connection therewith. Every replacement Bond issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the City whether or not the lost, stolen, or destroyed Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Bonds duly issued under this Ordinance. (e) Authority for Issuing Replacement Bonds. In accordance with Subchapter B of Texas Government Code, Chapter 1206, this Section of this Ordinance shall constitute authority for the issuance of any such replacement Bond without necessity of further action by the governing body of the City or any other body or person, and the duty of the replacement of such Bonds is hereby authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent/Registrar shall authenticate and deliver such Bonds in the form and manner and with the effect, as provided in Section 4(a) of this Ordinance for Bonds issued in conversion and exchange for other Bonds. Section 9. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS; BOND COUNSEL'S OPINION; CUSIP NUMBERS AND CONTINGENT INSURANCE PROVISION, IF OBTAINED. The Mayor of the City is hereby authorized to have control of the Bonds initially issued and delivered hereunder and all necessary records and proceedings pertaining to the Bonds 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. Upon registration of the Bonds the Comptroller of Public Accounts (or a deputy designated in writing to act for the Comptroller) shall manually sign the Comptroller's Registration Certificate attached to such Bonds, and the seal of the Comptroller shall be impressed, or placed in facsimile, on such Certificate. The approving legal opinion of the City's Bond Counsel and the assigned CUSIP numbers may, at the option of the City, be printed on the Bonds issued and delivered under this Ordinance, but neither shall have any legal effect, and shall be solely for the convenience and information of the Registered Owners of the Bonds. In addition, if bond insurance or other credit enhancement is obtained, the Bonds may bear an appropriate legend. Section 10. COVENANTS REGARDING TAX EXEMPTION OF INTEREST ON THE BONDS. (a) Covenants. The City covenants to take any action necessary to assure, or refrain from any action which would adversely affect, the treatment of the Bonds as obligations described in section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), the interest on which is not includable in the "gross income" of the holder for purposes of federal income taxation. In furtherance thereof, the City covenants as follows: (1) to take any action to assure that no more than 10 percent of the proceeds of the Bonds or the projects financed therewith (less amounts deposited to a reserve fund, if any) are used for any "private business use," as defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds of the Bonds or the projects financed therewith are so used, such amounts, whether or not received by the City, with respect to such private HUNTSVILLE\GO\20: Ordinance 18 business use, do not, under the terms of this Ordinance or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt service on the Bonds, in contravention of section 141(b)(2) of the Code; (2) to take any action to assure that in the event that the "private business use" described in subsection (1) hereof exceeds 5 percent of the proceeds of the Bonds or the projects financed therewith (less amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used for a "private business use" which is "related" and not "disproportionate," within the meaning of section 141(b)(3) of the Code, to the governmental use; (3) to take any action to assure that no amount which is greater than the lesser of $5,000,000, or 5 percent of the proceeds of the Bonds (less amounts deposited into a reserve fund, if any) is directly or indirectly used to finance loans to persons, other than state or local governmental units, in contravention of section 141(c) of the Code; (4) to refrain from taking any action which would otherwise result in the Bonds being treated as "private activity bonds" within the meaning of section 141(b) of the Code; (5) to refrain from taking any action that would result in the Bonds being "federally guaranteed" within the meaning of section 149(b) of the Code; (6) to refrain from using any portion of the proceeds of the Bonds, directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the Bonds, other than investment property acquired with -- (A) proceeds of the Bonds invested for a reasonable temporary period of 3 years or less or, in the case of a refunding bond, for a period of 90 days or less until such proceeds are needed for the purpose for which bonds are issued, (B) amounts invested in a bona fide debt service fund, within the meaning of section l.148-1(b) of the Treasury Regulations, and (C) amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do not exceed 10 percent of the proceeds of the Bonds; (7) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the requirements of section 148 of the Code (relating to arbitrage); (8) to refrain from using the proceeds of the Bonds or proceeds of any prior bonds to pay debt service on another issue more than 90 days after the date of issue of the Bonds in contravention of the requirements of section 149(d) of the Code (relating to advance refundings); and HUNTSVILLE\GO\20: Ordinance 19 (9) to pay to the United States of America at least once during each five-year period (beginning on the date of delivery of the Bonds) an amount that is at least equal to 90 percent of the "Excess Earnings," within the meaning of section 148(f) of the Code and to pay to the United States of America, not later than 60 days after the Bonds have been paid in full, 100 percent of the amount then required to be paid as a result of Excess Earnings under section 148(f) of the Code. (b) Rebate Fund. In order to facilitate compliance with the above covenant (9), a "Rebate Fund" is hereby established by the City for the sole benefit of the United States of America, and such fund shall not be subject to the claim of any other person, including without limitation the bondholders. The Rebate Fund is established for the additional purpose of compliance with section 148 of the Code. (c) Proceeds. The City understands that the term "proceeds" includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of refunding bonds, transferred proceeds (if any) and proceeds of the refunded bonds not expended prior to the date of issuance of the Bonds. It is the understanding of the City that the covenants contained herein are intended to assure compliance with the Code and any regulations or rulings promulgated by the U.S. Department of the Treasury pursuant thereto. In the event that regulations or rulings are hereafter promulgated which modify or expand provisions of the Code, as applicable to the Bonds, the City will not be required to comply with any covenant contained herein to the extent that such failure to comply, in the opinion of nationally recognized bond counsel, will not adversely affect the exemption from federal income taxation of interest on the Bonds under section 103 of the Code. In the event that regulations or rulings are hereafter promulgated which impose additional requirements which are applicable to the Bonds, the City agrees to comply with the additional requirements to the extent necessary, in the opinion of nationally recognized bond counsel, to preserve the exemption from federal income taxation of interest on the Bonds under section 103 of the Code. In furtherance of such intention, the City hereby authorizes and directs the City Manager, the Assistant City Manager or Director of Finance of the City to execute any documents, certificates or reports required by the Code and to make such elections, on behalf of the City, which may be permitted by the Code as are consistent with the purpose for the issuance of the Bonds. This Ordinance is intended to satisfy the official intent requirements set forth in Section 1.150-2 of the Treasury Regulations. (d) Allocation Of, and Limitation On, Expenditures for the Project. The City covenants to account for the expenditure of sale proceeds and investment earnings to be used for the purposes described in Section 1 of this Ordinance (the "Project") on its books and records in accordance with the requirements of the Code. The City recognizes that in order for the proceeds to be considered used for the reimbursement of costs, the proceeds must be allocated to expenditures within 18 months of the later of the date that (1) the expenditure is made, or (2) the Project is completed; but in no event later than three years after the date on which the original expenditure is paid. The foregoing notwithstanding, the City recognizes that in order for proceeds to be expended under the Code, the sale proceeds or investment earnings must be expended no more than 60 days after the earlier of (1) the fifth anniversary of the delivery of the Bonds, or (2) the date the Bonds are retired. The City agrees to obtain the advice of nationally-recognized bond counsel if such expenditure fails to comply with the foregoing to assure that such expenditure will not adversely affect the tax-exempt status of the Bonds. For purposes hereof, the City shall not be HUNTSVILLE\GO\20: Ordinance 20 obligated to comply with this covenant if it obtains an opinion that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of the interest. (e) Disposition of Project. The City covenants that the property constituting the projects financed therewith the proceeds of the Bonds will not be sold or otherwise disposed of in a transaction resulting in the receipt by the City of cash or other compensation, unless the City obtains an opinion of nationally-recognized bond counsel that such sale or other disposition will not adversely affect the tax-exempt status of the Bonds. For purposes of this subsection, the portion of the property comprising personal property and disposed in the ordinary course shall not be treated as a transaction resulting in the receipt of cash or other compensation. For purposes of this subsection, the City shall not be obligated to comply with this covenant if it obtains an opinion of nationally recognized bond counsel to the effect that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of the interest. Section 11. SALE OF BONDS. The Bonds are hereby awarded and sold to the bidder whose bid produced the lowest true interest cost, pursuant to the taking of public bids therefor, on this date, and shall be delivered to_______________ (the "Purchaser") at a price of $__________ (representing the par amount of the Bonds of $__________ plus an initial reoffering premium of $__________). It is hereby officially found, determined and declared that the terms of this sale are the most advantageous reasonably obtainable and are in the best interest of the City. The Bonds shall initially be registered in the name of the Purchaser. Pursuant to Sections 1201.029 and 1201.042, Texas Government Code, the $__________ of reoffering premium generated by the sale of the Bonds is allocated to be used as follows: (i) $__________for costs of issuance of the Bonds and (ii) $__________ to be used to pay the costs of the projects being financed by the Bonds described in Section 1 (with the total voted authorization utilized by the Bonds being as set forth in the recitals to this Ordinance). Section 12. DEFAULT AND REMEDIES. (a) Events of Default. Each of the following occurrences or events for the purpose of this Ordinance is hereby declared to be an Event of Default: (i) the failure to make payment of the principal of or interest on any of the Bonds when the same becomes due and payable; or (ii) default in the performance or observance of any other covenant, agreement or obligation of the City, the failure to perform which materially, adversely affects the rights of the Registered Owners of the Bonds, including, but not limited to, their prospect or ability to be repaid in accordance with this Ordinance, and the continuation thereof for a period of 60 days after notice of such default is given by any Registered Owner to the City. (b) Remedies for Default. (i) Upon the happening of any Event of Default, then and in every case, any Registered Owner or an authorized representative thereof, including, but not limited to, a trustee or trustees therefor, may proceed against the City, or any official, officer or HUNTSVILLE\GO\20: Ordinance 21 employee of the City in their official capacity, for the purpose of protecting and enforcing the rights of the Registered Owners under this Ordinance, by mandamus or other suit, action or special proceeding in equity or at law, in any court of competent jurisdiction, for any relief permitted by law, including the specific performance of any covenant or agreement contained herein, or thereby to enjoin any act or thing that may be unlawful or in violation of any right of the Registered Owners hereunder or any combination of such remedies. (ii) It is provided that all such proceedings shall be instituted and maintained for the equal benefit of all Registered Owners of Bonds then outstanding. (c) Remedies Not Exclusive. (i) No remedy herein conferred or reserved is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or under the Bonds or now or hereafter existing at law or in equity; provided, however, that notwithstanding any other provision of this Ordinance, the right to accelerate the debt evidenced by the Bonds shall not be available as a remedy under this Ordinance. (ii) The exercise of any remedy herein conferred or reserved shall not be deemed a waiver of any other available remedy. (iii) By accepting the delivery of a Bond authorized under this Ordinance, such Registered Owner agrees that the certifications required to effectuate any covenants or representations contained in this Ordinance do not and shall never constitute or give rise to a personal or pecuniary liability or charge against the officers, employees or trustees of the City or the City Council. (iv) None of the members of the City Council, nor any other official or officer, agent, or employee of the City, shall be charged personally by the Registered Owners with any liability, or be held personally liable to the Registered Owners under any term or provision of this Ordinance, or because of any Event of Default or alleged Event of Default under this Ordinance. Section 13. INTEREST EARNINGS ON BOND PROCEEDS. Interest earnings derived from the investment of proceeds from the sale of the Bonds shall be used along with other certificate proceeds for the purpose for which the Bonds are issued set forth in Section 1 hereof; provided that after completion of such purpose, if any of such interest earnings remain on hand, such interest earnings shall be deposited in the Interest and Sinking Fund. It is further provided, however, that any interest earnings on bond proceeds which are required to be rebated to the United States of America pursuant to Section 10 hereof in order to prevent the Bonds from being arbitrage bonds shall be so rebated and not considered as interest earnings for the purposes of this Section. Section 14. APPROVAL OF PAYING AGENT/REGISTRAR AGREEMENT, LETTER OF REPRESENTATIONS AND OFFICIAL STATEMENT. Each of the Mayor, City Manager and Director of Finance are hereby authorized to execute a Paying Agent/Registrar HUNTSVILLE\GO\20: Ordinance 22 Agreement with the Paying Agent/Registrar in connection with the issuance of the Bonds. The Paying Agent/Registrar Agreement shall be in substantially the form previously approved by the City in connection with the City’s outstanding bonds with such changes that the officer executing such agreement may approve with such approval to be conclusively evidenced by execution of the Paying Agent/Registrar Agreement. The City confirms execution of a Blanket Issuer Letter of Representations with DTC establishing the Book-Entry-Only System which will be utilized with respect to the Bonds. The City hereby approves the form and content of the Notice of Sale and Preliminary Official Statement and Official Statement relating to the Bonds and any addenda, supplement or amendment thereto, and approves the distribution of such Official Statement in the reoffering of the Bonds by the initial Purchaser in final form, with such changes therein or additions thereto as the officer executing the same may deem advisable, such determination to be conclusively evidenced by his execution thereof. The distribution and use of the Preliminary Official Statement dated __________, 2020, prior to the date hereof is ratified and confirmed. The City Council of the City hereby finds and determines that the Preliminary Official Statement and the Official Statement were and are "deemed final" (as that term is defined in 17 C.F.R. Section 240.15c-12) as of their respective dates. Section 15. CONTINUING DISCLOSURE UNDERTAKING. (a) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: “Financial Obligation” means a (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of a debt obligation or any such derivative instrument; provided that “financial obligation” shall not include municipal securities (as defined in the Securities Exchange Act of 1934, as amended) as to which a final official statement (as defined in the Rule) has been provided to the MSRB consistent with the Rule. "MSRB" means the Municipal Securities Rulemaking Board. "Rule" means SEC Rule 15c2-12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission. (b) Annual Reports. The City shall provide annually to the MSRB, (1) within six months after the end of each fiscal year of the City ending in or after 2020, financial information and operating data with respect to the City of the general type included in the final Official Statement authorized by Section 14 of this Ordinance, being information of the type described in Exhibit "A" hereto, including financial statements of the City if audited financial statements of the City are then available, and (2) if not provided as part of such financial information and operating data, audited financial statements of the City, when and if available. Any financial statements to be provided shall be (i) prepared in accordance with the accounting principles described in Exhibit "A" hereto, or such other accounting principles as the City may be required to employ from time to time pursuant to state law or regulation, and in substantially the form included in the Official Statement, and (ii) audited, if the City commissions an audit of such financial statements and the audit is completed within the period during which they must be provided. If the audit of such HUNTSVILLE\GO\20: Ordinance 23 financial statements is not complete within 12 months after any such fiscal year end, then the City shall file unaudited financial statements within such 12-month period and audited financial statements for the applicable fiscal year, when and if the audit report on such statements becomes available. If the City changes its fiscal year, it will file notice of the change (and of the date of the new fiscal year end) with the MSRB prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. (c) Event Notices. The City shall file notice of any of the following events with respect to the Bonds with the MSRB in a timely manner and not more than 10 business days after the occurrence of the event: (1) Principal and interest payment delinquencies; (2) Non-payment related defaults, if material; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701- TEB), or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (7) Modifications to rights of holders of the Bonds, if material; (8) Bond calls, if material, and tender offers; (9) Defeasances; (10) Release, substitution, or sale of property securing repayment of the Bonds, if material; (11) Rating changes; (12) Bankruptcy, insolvency, receivership, or similar event of the City; (13) The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (14) Appointment of a successor or additional trustee or the change of name of a trustee, if material; HUNTSVILLE\GO\20: Ordinance 24 (15) Incurrence of a Financial Obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the City, any of which affect security holders, if material; and (16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the City, any of which reflect financial difficulties. For these purposes, (a) any event described in the immediately preceding paragraph (12) is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers of the City in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City and (b) the City intends the words used in the immediately preceding paragraphs (15) and (16) and the definition of Financial Obligation in this Section to have the same meanings as when they are used in the Rule, as ascribed to in SEC Release No. 34-83885, dated August 20, 2018. The City shall file notice with the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such subsection. (d) Limitations, Disclaimers, and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City in any event will give notice of any deposit made in accordance with Section 7 of this Ordinance that causes the Bonds to be no longer outstanding. The provisions of this Section are for the sole benefit of the holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City’s financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City makes no representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY HUNTSVILLE\GO\20: Ordinance 25 THE CITY, WHETHER NEGLIGENT OR WITH OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment as well as such changed circumstances, and (2) either (a) the holders of a majority in aggregate principal amount of the outstanding Bonds consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the holders and beneficial owners of the Bonds. The City may also repeal or amend the provisions of this Section if the SEC amends or repeals the applicable provisions of the Rule or any court of final jurisdiction enters judgment that such provisions of the Rule are invalid, and the City also may amend the provisions of this Section in its discretion in any other manner or circumstance, but in either case only if and to the extent that the provisions of this sentence would not have prevented an underwriter from lawfully purchasing or selling Bonds in the primary offering of the Bonds, giving effect to (i) such provisions as so amended and (ii) any amendments or interpretations of the Rule. If the City so amends the provisions of this Section, the City shall include with any amended financial information or operating data next provided in accordance with this subsection (b) of this Section an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. (e) Format, Identifying Information, and Incorporation by Reference. All financial information, operating data, financial statements, and notices required by this Section to be provided to the MSRB shall be provided in an electronic format and be accompanied by identifying information prescribed by the MSRB. Financial information and operating data to be provided pursuant to subsection (b) of this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document) available to the public on the MSRB’s Internet Web site or filed with the SEC. Section 16. AMENDMENT OF ORDINANCE. The City hereby reserves the right to amend this Ordinance subject to the following terms and conditions, to-wit: HUNTSVILLE\GO\20: Ordinance 26 (a) The City may from time to time, without the consent of any holder, except as otherwise required by paragraph (b) below, amend or supplement this Ordinance in order to (i) cure any ambiguity, defect or omission in this Ordinance that does not materially adversely affect the interests of the holders, (ii) grant additional rights or security for the benefit of the holders, (iii) add events of default as shall not be inconsistent with the provisions of this Ordinance and that shall not materially adversely affect the interests of the holders, (iv) qualify this Ordinance under the Trust Indenture Act of 1939, as amended, or corresponding provisions of federal laws from time to time in effect, (v) obtain insurance or ratings on the Bonds, (vi) obtain the approval of the Attorney General of the State of Texas, or (vii) make such other provisions in regard to matters or questions arising under this Ordinance as shall not be inconsistent with the provisions of this Ordinance and that shall not in the opinion of the City's Bond Counsel materially adversely affect the interests of the holders. (b) Except as provided in paragraph (a) above, the holders of Bonds aggregating in principal amount 51% of the aggregate principal amount of then outstanding Bonds that are the subject of a proposed amendment shall have the right from time to time to approve any amendment hereto that may be deemed necessary or desirable by the City; provided, however, that without the consent of 100% of the holders in aggregate principal amount of the then outstanding Bonds, nothing herein contained shall permit or be construed to permit amendment of the terms and conditions of this Ordinance or in any of the Bonds so as to: (1) Make any change in the maturity of any of the outstanding Bonds; (2) Reduce the rate of interest borne by any of the outstanding Bonds; (3) Reduce the amount of the principal of, or redemption premium, if any, payable on any outstanding Bonds; (4) Modify the terms of payment of principal or of interest or redemption premium on outstanding Bonds or any of them or impose any condition with respect to such payment; or (5) Change the minimum percentage of the principal amount of any series of Bonds necessary for consent to such amendment. (c) If at any time the City shall desire to amend this Ordinance under this Section, the City shall send by U.S. mail to each registered owner of the affected Bonds a copy of the proposed amendment and cause notice of the proposed amendment to be published at least once in a financial publication published in The City of New York, New York or in the State of Texas. Such published notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on file at the office of the City for inspection by all holders of such Bonds. (d) Whenever at any time within one year from the date of publication of such notice the City shall receive an instrument or instruments executed by the holders of at least 51% in aggregate principal amount of all of the Bonds then outstanding that are required for the amendment, which instrument or instruments shall refer to the proposed amendment and that shall HUNTSVILLE\GO\20: Ordinance 27 specifically consent to and approve such amendment, the City may adopt the amendment in substantially the same form. (e) Upon the adoption of any amendatory Ordinance pursuant to the provisions of this Section, this Ordinance shall be deemed to be modified and amended in accordance with such amendatory Ordinance, and the respective rights, duties, and obligations of the City and all holders of such affected Bonds shall thereafter be determined, exercised, and enforced, subject in all respects to such amendment. (f) Any consent given by the holder of a Bond pursuant to the provisions of this Section shall be irrevocable for a period of six months from the date of the publication of the notice provided for in this Section, and shall be conclusive and binding upon all future holders of the same Bond during such period. Such consent may be revoked at any time after six months from the date of the publication of said notice by the holder who gave such consent, or by a successor in title, by filing notice with the City, but such revocation shall not be effective if the holders of 51% in aggregate principal amount of the affected Bonds then outstanding, have, prior to the attempted revocation, consented to and approved the amendment. Section 17. NO RECOURSE AGAINST CITY OFFICIALS. No recourse shall be had for the payment of principal of or interest on the Bonds or for any claim based thereon or on this Ordinance against any official of the City or any person executing any Bonds. Section 18. FURTHER ACTIONS. The officers and employees of the City are hereby authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the City all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance, the Bonds, the initial sale and delivery of the Bonds, the Paying Agent/Registrar Agreement and the Official Statement. In addition, prior to the initial delivery of the Bonds, the Mayor or City Manager, is hereby authorized and directed to approve any changes or corrections to this Ordinance or to any of the instruments authorized and approved by this Ordinance necessary in order to (i) correct any ambiguity or mistake or properly or more completely document the transactions contemplated and approved by this Ordinance and as described in the Official Statement or (ii) obtain the approval of the Bonds by the Texas Attorney General's office. In case any officer of the City whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. Section 19. INTERPRETATIONS. All terms defined herein and all pronouns used in this Ordinance shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the articles and sections of this Ordinance have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof. This Ordinance and all the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of the Bonds and the validity of the lien on and pledge to secure the payment of the Bonds. HUNTSVILLE\GO\20: Ordinance 28 Section 20. INCONSISTENT PROVISIONS. All ordinances, orders or resolutions, or parts thereof, which are in conflict or inconsistent with any provisions of this Ordinance are hereby repealed to the extent of such conflict and the provisions of this Ordinance shall be and remain controlling as to the matters contained herein. Section 21. INTERESTED PARTIES. Nothing in this Ordinance expressed or implied is intended or shall be construed to confer upon, or to give to, any person or entity, other than the City and the registered owners of the Bonds, any right, remedy or claim under or by reason of this Ordinance or any covenant, condition or stipulation hereof, and all covenants, stipulations, promises and agreements in this Ordinance contained by and on behalf of the City shall be for the sole and exclusive benefit of the City and the registered owners of the Bonds. Section 22. INCORPORATION OF RECITALS. The City hereby finds that the statements set forth in the recitals of this Ordinance are true and correct, and the City hereby incorporates such recitals as a part of this Ordinance. Section 23. SEVERABILITY. The provisions of this Ordinance are severable; and in case any one or more of the provisions of this Ordinance or the application thereof to any person or circumstance should be held to be invalid, unconstitutional, or ineffective as to any person or circumstance, the remainder of this Ordinance nevertheless shall be valid, and the application of any such invalid provision to persons or circumstances other than those as to which it is held invalid shall not be affected thereby. Section 24. REPEALER. All orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent of such inconsistency. Section 25. EFFECTIVE DATE. This Ordinance shall become effect immediately from and after its passage on first and final reading in accordance with Section 1201.028, Texas Government Code, as amended. Section 26. PERFECTION. Chapter 1208, Government Code, applies to the issuance of the Bonds and the pledge of ad valorem taxes granted by the City under Section 6 of this Ordinance, and such pledge is therefore valid, effective and perfected. If Texas law is amended at any time while the Bonds are outstanding and unpaid such that the pledge of ad valorem taxes granted by the City under Section 6 of this Ordinance is to be subject to the filing requirements of Chapter 9, Business & Commerce Code, then in order to preserve to the registered owners of the Bonds the perfection of the security interest in said pledge, the City agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Chapter 9, Business & Commerce Code and enable a filing to perfect the security interest in said pledge to occur. Section 27. PAYMENT OF ATTORNEY GENERAL FEE. The City hereby authorizes the disbursement of a fee equal to the lesser of (i) one-tenth of one percent of the principal amount of each series of the Bonds or (ii) $9,500, provided that such fee shall not be less than $750, to the Attorney General of Texas Public Finance Division for payment of the examination fee charged by the State of Texas for the Attorney General's review and approval of public securities and credit agreements, as required by Section 1202.004 of the Texas Government Code. The appropriate member of the City's staff is hereby instructed to take the necessary HUNTSVILLE\GO\20: Ordinance 29 measures to make this payment. The City is also authorized to reimburse the appropriate City funds for such payment from proceeds of the Bonds. HUNTSVILLE\GO\20: Ordinance SigPg IN ACCORDANCE WITH SECTION 1201.028, Texas Government Code, passed and approved on the first and final reading on the 18th day of August 2020. CITY OF HUNTSVILLE __________________________________ Andy Brauninger, Mayor City of Huntsville, Texas ATTEST: Brenda Poe, City Secretary APPROVED AS TO FORM: Leonard Schneider, City Attorney HUNTSVILLE\GO\20: Ordinance A-1 EXHIBIT A DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 15 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: (1) Table 1 – Valuation, Exemptions and General Obligation Debt; (2) Table 2 – Taxable Assessed Valuations by Category; (3) Table 3 – Valuation and General Obligation Debt History; (4) Table 4 – Tax Rate, Levy and Collection History; (5) Table 5 – Ten Largest Taxpayers; (6) Table 6 – Tax Adequacy; (7) Table 8 – Pro-Forma General Obligation Debt Service Requirements; (8) Table 9 – Interest and Sinking Fund Budget Projection; (9) Table 10 – Computation of Self-Supporting Debt; (10) Table 11 – Authorized But Unissued General Obligation Bonds; (11) Table 12 – Other Obligations; (12) Table 13 – Change in Net Assets; (13) Table 13A – General Fund Revenues and Expenditure History; (14) Table 14 – Municipal Sales Tax History; and (15) Table 15 – Current Investments. (16) Appendix B. Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to in Appendix B to the Official Statement. M E M O R A N D U M DATE: August 18, 2020 TO: Leonard Schneider, City Attorney City of Huntsville, Texas FROM: C. D. Polumbo RE: Huntsville General Obligation Bonds, Series 2020 As Bond Counsel to the City of Huntsville, Texas I hereby approve the form of the Ordinance for the meeting on August 18, 2020 which is the Ordinance 2020-38, ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF HUNTSVILLE, TEXAS GENERAL OBLIGATION BONDS, SERIES 2020; AUTHORIZING THE LEVY OF AN AD VALOREM TAX IN SUPPORT OF THE BONDS; APPROVING AN OFFICIAL STATEMENT, A PAYING AGENT/REGISTRAR AGREEMENT AND OTHER RELATED DOCUMENTS; AWARDING THE SALE OF THE BONDS AND AUTHORIZING OTHER MATTERS RELATING TO THE BONDS. . ___ C. D. Polumbo, Managing Partner McCall, Parkhurst & Horton L.L.P. Agenda Item #2b Item/Subject: Consider adopting Ordinance 2020-39 authorizing the issuance of City of Huntsville, Texas Certificates of Obligation, Series 2020; authorizing the levy of an ad valorem tax in support of the Certificates; approving an official statement, a paying agent/registrar agreement and other related documents; awarding the sale of the Certificates and authorizing other matters relating to the Certificates. Initiating Department/Presenter: Finance Presenter: Steve Ritter – Finance Director Recommended Motion: Move to adopt Ordinance 2020-39 an Ordinance authorizing the issuance of City of Huntsville, Texas Certificates of Obligation, Series 2020; authorizing the levy of an ad valorem tax in support of the Certificates; approving an official statement, a paying agent/registrar agreement and other related documents; awarding the sale of the Certificates and authorizing other matters relating to the Certificates. Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient and fiscally sound government through conservative fiscal practices and resource management. Discussion: This agenda item authorizes the sale of the Series 2020 Certificates of Obligation for the MLK Center and an Animal Control Center. Various amounts in this Ordinance as provided to Council on August 14, 2020 in the agenda packet will be revised based on the actual sale of the bonds the morning of August 18, 2020. Council will receive an updated version of the Ordinance the evening of August 18, 2020 for approval with amounts and terms of the actual sale of the Bonds. Previous Council Action: None. Financial Implications: Issuing these Series 2020 Certificates of Obligation will provide funds for the MLK Center and the Animal Shelter projects totaling approximately $3,400,000 and cover issuance costs of approximately $80,000. Approvals: ☐City Attorney ☒Director of Finance ☒City Manager Associated Information: • Ordinance 2020-39 with Exhibit A (pages 2 – 33) • McCall, Parkhurst & Horton, Memo 8/18/20, approval as to form of Ordinance (pg. 34) 8/18/2020 Agenda Item: 2b CITY COUNCIL AGENDA ORDINANCE NO. 2020-39 ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF HUNTSVILLE, TEXAS COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 2020; AUTHORIZING THE LEVY OF AN AD VALOREM TAX AND THE PLEDGE OF CERTAIN REVENUES IN SUPPORT OF THE CERTIFICATES; APPROVING AN OFFICIAL STATEMENT AND A PAYING AGENT/REGISTRAR AGREEMENT; AWARDING THE SALE OF THE CERTIFICATES; AND AUTHORIZING OTHER MATTERS RELATED TO THE ISSUANCE OF THE CERTIFICATES Adopted August 18, 2020 2 Huntsville\CO\2020: Ordinance Table of Contents Page Recitals .............................................................................................................................................1 Section 1. RECITALS, AMOUNT AND PURPOSE OF THE CERTIFICATES .......................2 Section 2. DESIGNATION, DATE, DENOMINATIONS, NUMBERS, AND MATURITIES OF CERTIFICATES ..........................................................................2 Section 3. INTEREST ...................................................................................................................3 Section 4. CHARACTERISTICS OF THE CERTIFICATES .....................................................3 Section 5. FORM OF CERTIFICATE..........................................................................................7 Section 6. INTEREST AND SINKING FUND ..........................................................................15 Section 7. REVENUES ...............................................................................................................15 Section 8. DEFEASANCE OF CERTIFICATES .......................................................................16 Section 9. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED CERTIFICATES ........................................................................................................17 Section 10. CUSTODY, APPROVAL, AND REGISTRATION OF CERTIFICATES; BOND COUNSEL'S OPINION; CUSIP NUMBERS AND CONTINGENT INSURANCE PROVISION, IF OBTAINED.................................18 Section 11. COVENANTS REGARDING TAX EXEMPTION OF INTEREST ON THE CERTIFICATES ........................................................................................18 Section 12. SALE OF CERTIFICATES .......................................................................................21 Section 13. DEFAULT AND REMEDIES ...................................................................................21 Section 14. INTEREST EARNINGS ON CERTIFICATE PROCEEDS .....................................23 Section 15. APPROVAL OF PAYING AGENT/REGISTRAR AGREEMENT, LETTER OF REPRESENTATIONS AND OFFICIAL STATEMENT ...................23 Section 16. CONTINUING DISCLOSURE UNDERTAKING ...................................................23 Section 17. NO RECOURSE AGAINST CITY OFFICIALS. .....................................................27 Section 18. FURTHER ACTIONS. ..............................................................................................27 Section 19. INTERPRETATIONS ...............................................................................................28 Section 20. INCONSISTENT PROVISIONS. .............................................................................28 Section 21. INTERESTED PARTIES ..........................................................................................28 Section 22. INCORPORATION OF RECITALS .........................................................................28 Section 23. SEVERABILITY .......................................................................................................28 Section 24. REPEALER. ..............................................................................................................28 Section 25. EFFECTIVE DATE. ..................................................................................................28 Section 26. PERFECTION. ..........................................................................................................28 Exhibit A - Description of Annual Financial Information 3 Huntsville\CO\2020: Ordinance ORDINANCE NO. 2020-39 ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF HUNTSVILLE, TEXAS COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 2020; AUTHORIZING THE LEVY OF AN AD VALOREM TAX AND THE PLEDGE OF CERTAIN REVENUES IN SUPPORT OF THE CERTIFICATES; APPROVING AN OFFICIAL STATEMENT AND A PAYING AGENT/REGISTRAR AGREEMENT; AWARDING THE SALE OF THE CERTIFICATES; AND AUTHORIZING OTHER MATTERS RELATED TO THE ISSUANCE OF THE CERTIFICATES THE STATE OF TEXAS ' COUNTY OF WALKER ' CITY OF HUNTSVILLE ' WHEREAS, the City Council of the City of Huntsville, Texas (the "City") deems it advisable to issue certificates of obligation in the amount of $3,225,000 (the "Certificates") and finds that the payment in whole or in part of contractual obligations are incurred or to be incurred for(1) constructing, acquiring, improving, renovating, expanding and equipping City park and recreational facilities including the City’s existing MLK Community Center; (2) constructing, acquiring, improving, renovating, expanding and equipping an animal shelter including the purchase of any necessary land; and (3) professional services including fiscal, engineering, architectural and legal fees and other such costs incurred in connection therewith including the costs of issuing the Certificates; and WHEREAS, the Certificates hereinafter authorized and designated are to be issued and delivered for cash pursuant to Subchapter C of Chapter 271, Texas Local Government Code, as amended (“Chapter 271”) and Section 1502.052, Texas Government Code, as amended; and WHEREAS, on June 16, 2020 the City Council passed a resolution authorizing and directing the City Secretary to give notice of intention to issue the Certificates; and WHEREAS, the notice was published on June 23, 2020 and June 30, 2020 in the Huntsville Item, a newspaper of general circulation in the City and a "newspaper" as defined in Section 2051.044, Government Code; and WHEREAS, the City also posted the notice of intention to issue the Certificates on its internet website at least 46 days prior to, and continuously until, adoption of this Ordinance in accordance with Chapter 271; and WHEREAS, the City has not received a petition from the qualified electors of the City protesting the issuance of the Certificates; and WHEREAS, it is hereby officially found and determined that the meeting at which this Ordinance was passed was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Chapter 551, Texas Government Code; and WHEREAS, it is considered to be in the best interest of the City that the interest-bearing Certificates be issued. 4 Huntsville\CO\2020: Ordinance BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS: Section 1. RECITALS, AMOUNT AND PURPOSE OF THE CERTIFICATES. Recitals and Purpose. The recitals set forth in the preamble hereof are incorporated by reference herein and shall have the same force and effect as if set forth in this Section. The certificates of the City of Huntsville, Texas (the "City") are hereby authorized to be issued and delivered in the aggregate principal amount of $3,225,000 (the "Certificates") for the purpose of paying contractual obligations incurred or to be incurred for: (1) constructing, acquiring, improving, renovating, expanding and equipping City park and recreational facilities including the City’s existing MLK Community Center; (2) constructing, acquiring, improving, renovating, expanding and equipping an animal shelter including the purchase of any necessary land; and (3) professional services including fiscal, engineering, architectural and legal fees and other such costs incurred in connection therewith including the costs of issuing the Certificates. Section 2. DESIGNATION, DATE, DENOMINATIONS, NUMBERS, AND MATURITIES OF CERTIFICATES. Each Certificate issued pursuant to this Ordinance shall be designated: "CITY OF HUNTSVILLE, TEXAS COMBINATION TAX AND REVENUE CERTIFICATE OF OBLIGATION, SERIES 2020", and initially there shall be issued, sold, and delivered hereunder fully registered certificates, without interest coupons, dated September 15, 2020 in the respective denominations and principal amounts hereinafter stated, numbered consecutively from R-1 upward (except the initial Certificate delivered to the Attorney General of the State of Texas which shall be numbered T-1), payable to the respective initial registered owners thereof (as designated in Section 12 hereof), or to the registered assignee or assignees of said certificates or any portion or portions thereof (in each case, the "Registered Owner"), and said certificates shall mature and be payable serially on August 15 in each of the years and in the principal amounts, respectively, as set forth in the following schedule: YEAR AMOUNT YEAR AMOUNT 2021 $ 2034 $ 2022 2035 2023 2036 2024 2037 2025 2038 2026 2039 2027 2040 2028 2041 2029 2042 2030 2043 2031 2044 2032 2045 2033 5 Huntsville\CO\2020: Ordinance The term "Certificates" as used in this Ordinance shall mean and include collectively the Certificates initially issued and delivered pursuant to this Ordinance and all substitute Certificates exchanged therefor, as well as all other substitute certificates and replacement Certificates issued pursuant hereto, and the term "Certificate" shall mean any of the Certificates. Section 3. INTEREST. The Certificates scheduled to mature during the years, respectively, set forth below shall bear interest from the dates specified in the FORM OF CERTIFICATE set forth in this Ordinance to their respective dates of maturity or redemption prior to maturity at the following rates per annum: YEAR RATE YEAR RATE 2021 % 2034 % 2022 2035 2023 2036 2024 2037 2025 2038 2026 2039 2027 2040 2028 2041 2029 2042 2030 2043 2031 2044 2032 2045 2033 Interest shall be payable in the manner provided and on the dates stated in the FORM OF CERTIFICATE set forth in this Ordinance. Section 4. CHARACTERISTICS OF THE CERTIFICATES. (a) Registration, Transfer, Conversion and Exchange; Authentication. The City shall keep or cause to be kept ZB, National Association dba Amegy Bank in Houston, Texas, (the "Paying Agent/Registrar") books or records for the registration of the transfer, conversion and exchange of the Certificates (the "Registration Books"), and the City hereby appoints the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records and make such registrations of transfers, conversions and exchanges under such reasonable regulations as the City and Paying Agent/Registrar may prescribe; and the Paying Agent/Registrar shall make such registrations, transfers, conversions and exchanges as herein provided. The Paying Agent/Registrar shall obtain and record in the Registration Books the address of the Registered Owner of each Certificate to which payments with respect to the Certificates shall be mailed, as herein provided; but it shall be the duty of each Registered Owner to notify the Paying Agent/Registrar in writing of the address to which payments shall be mailed, and such interest payments shall not be mailed unless such notice has been given. The City shall have the right to inspect the Registration Books during regular business hours of the Paying Agent/Registrar, but otherwise the Paying Agent/Registrar shall keep the Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by any 6 Huntsville\CO\2020: Ordinance other entity. The Paying Agent/Registrar shall make the Registration Books available within the State of Texas. The City shall pay the Paying Agent/Registrar's standard or customary fees and charges for making such registration, transfer, conversion, exchange and delivery of a substitute Certificate or Certificates. Registration of assignments, transfers, conversions and exchanges of Certificates shall be made in the manner provided and with the effect stated in the FORM OF CERTIFICATE set forth in this Ordinance. Each substitute Certificate shall bear a letter and/or number to distinguish it from each other Certificate. Except as provided in Section 4(c) of this Ordinance, an authorized representative of the Paying Agent/Registrar shall, before the delivery of any such Certificate, date and manually sign said Certificate, and no such Certificate shall be deemed to be issued or outstanding unless such Certificate is so executed. The Paying Agent/Registrar promptly shall cancel all paid Certificates and Certificates surrendered for conversion and exchange. No additional ordinances, orders, or resolutions need be passed or adopted by the governing body of the City or any other body or person so as to accomplish the foregoing conversion and exchange of any Certificate or portion thereof, and the Paying Agent/Registrar shall provide for the printing, execution, and delivery of the substitute Certificates in the manner prescribed herein, and said Certificates shall be printed or typed on paper of customary weight and strength. Pursuant to Chapter 1201, Texas Government Code, as amended, and particularly Subchapter D thereof, the duty of conversion and exchange of Certificates as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of said Certificate, the converted and exchanged Certificate shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Certificates which initially were issued and delivered pursuant to this Ordinance, approved by the Attorney General and registered by the Comptroller of Public Accounts. (b) Payment of Certificates and Interest. The City hereby further appoints the Paying Agent/Registrar to act as the paying agent for paying the principal of and interest on the Certificates, all as provided in this Ordinance. The Paying Agent/Registrar shall keep proper records of all payments made by the City and the Paying Agent/Registrar with respect to the Certificates, and of all conversions and exchanges of Certificates, and all replacements of Certificates, as provided in this Ordinance. However, in the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the past due interest shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first-class postage prepaid, to the address of each Registered Owner appearing on the Registration Books at the close of business on the last business day next preceding the date of mailing of such notice. (c) In General. The Certificates (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest on such Certificates to be payable only to the Registered Owners thereof, (ii) may be redeemed prior to their scheduled maturities, (iii) may be converted and exchanged for other Certificates, (iv) may be transferred and assigned, (v) shall have the characteristics, (vi) shall be signed, sealed, executed and authenticated, (vii) the principal of and interest on the Certificates shall be payable, and (viii) shall be administered and the Paying Agent/Registrar and the City shall have certain duties and responsibilities with respect to the Certificates, all as provided, and in the manner and to the effect as required or indicated, in the 7 Huntsville\CO\2020: Ordinance FORM OF CERTIFICATE set forth in this Ordinance. The Certificates initially issued and delivered pursuant to this Ordinance are not required to be, and shall not be, authenticated by the Paying Agent/Registrar, but on each substitute Certificate issued in conversion of and exchange for any Certificate or Certificates issued under this Ordinance the Paying Agent/Registrar shall execute the PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE, in the form set forth in the FORM OF CERTIFICATE. (d) Substitute Paying Agent/Registrar. The City covenants with the Registered Owners of the Certificates that at all times while the Certificates are outstanding the City will provide a competent and legally qualified bank, trust company, financial institution, or other agency to act as and perform the services of Paying Agent/Registrar for the Certificates under this Ordinance, and that the Paying Agent/Registrar will be one entity. The City reserves the right to, and may, at its option, change the Paying Agent/Registrar upon not less than 30 days written notice to the Paying Agent/Registrar, to be effective at such time which will not disrupt or delay payment on the next principal or interest payment date after such notice. In the event that the entity at any time acting as Paying Agent/Registrar (or its successor by merger, acquisition, or other method) should resign or otherwise cease to act as such, the City covenants that promptly it will appoint a competent and legally qualified bank, trust company, financial institution, or other agency to act as Paying Agent/Registrar under this Ordinance. Upon any change in the Paying Agent/Registrar, the previous Paying Agent/Registrar promptly shall transfer and deliver the Registration Books (or a copy thereof), along with all other pertinent books and records relating to the Certificates, to the new Paying Agent/Registrar designated and appointed by the City. Upon any change in the Paying Agent/Registrar, the City promptly will cause a written notice thereof to be sent by the new Paying Agent/Registrar to each Registered Owner of the Certificates, by United States mail, first-class postage prepaid, which notice also shall give the address of the new Paying Agent/Registrar. By accepting the position and performing as such, each Paying Agent/Registrar shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying Agent/Registrar. (e) Book-Entry-Only System. The Certificates issued in exchange for the Certificates initially issued as provided in Section 4(h) shall be issued in the form of a separate single fully registered Certificate for each of the maturities thereof registered in the name of Cede & Co. as nominee of The Depository Trust Company of New York ("DTC") and except as provided in subsection (f) hereof, all of the Outstanding Certificates shall be registered in the name of Cede & Co., as nominee of DTC. With respect to Certificates registered in the name of Cede & Co., as nominee of DTC, the City and the Paying Agent/Registrar shall have no responsibility or obligation to any securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations on whose behalf DTC was created to hold securities to facilitate the clearance and settlement of securities transactions among DTC participants (the "DTC Participant") or to any person on behalf of whom such a DTC Participant holds an interest in the Certificates. Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Certificates, (ii) the delivery to any DTC participant or any other person, other than a Registered Owner, as shown on the Registration Books, of any notice with respect to the Certificates, including any notice of 8 Huntsville\CO\2020: Ordinance redemption, or (iii) the payment to any DTC Participant or any person, other than a Registered Owner, as shown on the Registration Books of any amount with respect to principal of, premium, if any, or interest on the Certificates. Notwithstanding any other provision of this Ordinance to the contrary, but to the extent permitted by law, the City and the Paying Agent/Registrar shall be entitled to treat and consider the person in whose name each Certificate is registered in the Registration Books as the absolute owner of such Certificate for the purpose of payment of principal, premium, if any, and interest, with respect to such Certificate, for the purposes of registering transfers with respect to such Certificates, and for all other purposes of registering transfers with respect to such Certificates, and for all other purposes whatsoever. The Paying Agent/Registrar shall pay all principal of, premium, if any, and interest on the Certificates only to or upon the order of the respective Registered Owners, as shown in the Registration Books as provided in the Ordinance, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, and interest on the Certificates to the extent of the sum or sums so paid. No person other than a Registered Owner, as shown in the Registration Books, shall receive a Certificate evidencing the obligation of the City to make payments of principal, premium, if any, and interest pursuant to the Ordinance. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks being mailed to the registered owner at the close of business on the Record Date the word "Cede & Co." in this Ordinance shall refer to such new nominee of DTC. (f) Successor Securities Depository; Transfer Outside Book-Entry-Only System. In the event that the City determines to discontinue the book-entry system through DTC or a successor or DTC determines to discontinue providing its services with respect to the Certificates, the City shall either (i) appoint a successor securities depository, qualified to act as such under Section 17(a) of the Securities and Exchange Act of 1934, as amended, notify DTC and DTC Participants of the appointment of such successor securities depository and transfer one or more separate Certificates to such successor securities depository or (ii) notify DTC and DTC Participants of the availability through DTC of Certificates and transfer one or more separate Certificates to DTC Participants having Certificates credited to their DTC accounts. In such event, the Certificates shall no longer be restricted to being registered in the Registration Books in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names Registered Owner transferring or exchanging Certificates shall designate, in accordance with the provisions of this Ordinance. (g) Payments to Cede & Co. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Certificate is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Certificate and all notices with respect to such Certificate shall be made and given, respectively, in the manner provided in the Blanket Representation of the City to DTC. (h) Initial Certificate. The Certificates herein authorized shall be initially issued as fully registered certificates, being one certificate for each maturity in the denomination of the applicable principal amount and the initial Certificate shall be registered in the name of the purchaser or the designees thereof as set forth in Section 12 hereof. The initial Certificate shall be the Certificate submitted to the Office of the Attorney General of the State of Texas for approval, 9 Huntsville\CO\2020: Ordinance certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the Initial Purchaser. Immediately after the delivery of the initial Certificate, the Paying Agent/Registrar shall cancel the initial Certificate delivered hereunder and exchange therefor Certificates in the form of a separate single fully registered Certificate for each of the maturities thereof registered in the name of Cede & Co., as nominee of DTC and except as provided in Section 4(f), all of the outstanding Certificates shall be registered in the name of Cede & Co., as nominee of DTC. Section 5. FORM OF CERTIFICATE. The form of the Certificate, including the form of Paying Agent/Registrar's Authentication Certificate, the form of Assignment and the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be attached to the Certificates initially issued and delivered pursuant to this Ordinance, shall be, respectively, substantially as follows, with such appropriate variations, omissions or insertions as are permitted or required by this Ordinance. FORM OF CERTIFICATE NO. R- UNITED STATES OF AMERICA PRINCIPAL STATE OF TEXAS AMOUNT COUNTY OF WALKER $___________ CITY OF HUNTSVILLE, TEXAS COMBINATION TAX AND REVENUE CERTIFICATE OF OBLIGATION SERIES 2020 INTEREST RATE DATE OF CERTIFICATES MATURITY DATE CUSIP NO. % September 15, 2020 REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS ON THE MATURITY DATE specified above, the CITY OF HUNTSVILLE, in Walker County, Texas (the "City"), being a political subdivision of the State of Texas, hereby promises to pay to the Registered Owner set forth above, or registered assigns (hereinafter called the "Registered Owner") the principal amount set forth above, and to pay interest thereon from the initial date of delivery of the Certificates of September 15, 2020, on February 15, 2021 and semiannually on each August 15 and February 15 thereafter to the maturity date specified above, or the date of redemption prior to maturity, at the interest rate per annum specified above; except that if this Certificate is required to be authenticated and the date of its authentication after any Record Date (hereinafter defined) but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date; provided, however, that if on the date of authentication hereof the interest on the Certificate or Certificates, if any, for which this Certificate is being exchanged or converted from is due but has not been paid, then this Certificate shall bear interest from the date to which such interest has been paid in full. Notwithstanding the foregoing, during any period in which ownership of the 10 Huntsville\CO\2020: Ordinance Certificates is determined only by a book entry at a securities depository for the Certificates, any payment to the securities depository, or its nominee or registered assigns, shall be made in accordance with existing arrangements between the City and the securities depository. THE PRINCIPAL OF AND INTEREST ON this Certificate are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Certificate shall be paid to the Registered Owner hereof upon presentation and surrender of this Certificate at maturity, or upon the date fixed for its redemption prior to maturity, at ZB, National Association, dba Amegy Bank, which is the "Paying Agent/Registrar" for this Certificate at their office in Houston, Texas (the "Designated Payment/Transfer Office"). The payment of interest on this Certificate shall be made by the Paying Agent/Registrar to the Registered Owner hereof on each interest payment date by check or draft, dated as of such interest payment date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the City required by the ordinance authorizing the issuance of this Certificate (the "Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such check or draft shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, on each such interest payment date, to the Registered Owner hereof, at its address as it appeared on the close of business on the last business day of the month next preceding each such date (the "Record Date") on the registration books kept by the Paying Agent/Registrar (the "Registration Books"). In addition, interest may be paid by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Registered Owner. In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first-class postage prepaid, to the address of each owner of a Certificate appearing on the Registration Books at the close of business on the last business day next preceding the date of mailing of such notice. DURING ANY PERIOD in which ownership of the Certificates is determined only by a book entry at a securities depository for the Certificates, if fewer than all of the Certificates of the same maturity and bearing the same interest rate are to be redeemed, the particular Certificates of such maturity and bearing such interest rate shall be selected in accordance with the arrangements between the City and the securities depository. ANY ACCRUED INTEREST due at maturity as provided herein shall be paid to the Registered Owner upon presentation and surrender of this Certificate for payment at the Designated Payment/Transfer Office of the Paying Agent/Registrar. The City covenants with the Registered Owner of this Certificate that on or before each payment date for this Certificate it will make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" created by the Ordinance, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the Certificates, when due. IF THE DATE for the payment of the principal of or interest on this Certificate shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the principal corporate trust office of the Paying Agent/Registrar is located are authorized by law or 11 Huntsville\CO\2020: Ordinance executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. THIS CERTIFICATE is one of a series of Certificates dated September 15, 2020, authorized in accordance with the Constitution and laws of the State of Texas in the aggregate principal amount of $3,225,000 FOR THE PURPOSE OF: (1) CONSTRUCTING, ACQUIRING, IMPROVING, RENOVATING, EXPANDING AND EQUIPPING CITY PARK AND RECREATIONAL FACILITIES INCLUDING THE CITY’S EXISTING MLK COMMUNITY CENTER; (2) CONSTRUCTING, ACQUIRING, IMPROVING, RENOVATING, EXPANDING AND EQUIPPING AN ANIMAL SHELTER INCLUDING THE PURCHASE OF ANY NECESSARY LAND; AND (3) PROFESSIONAL SERVICES INCLUDING FISCAL, ENGINEERING, ARCHITECTURAL AND LEGAL FEES AND OTHER SUCH COSTS INCURRED IN CONNECTION THEREWITH INCLUDING THE COSTS OF ISSUING THE CERTIFICATES. ON AUGUST 15, 2029, or on any date thereafter, the Certificates of this Series maturing on and after August 15, 2030 may be redeemed prior to their scheduled maturities, at the option of the City, with funds derived from any available and lawful source, at par plus accrued interest to the date fixed for redemption as a whole, or from time to time in part, and, if in part, the particular maturities, or sinking fund installments in the case of Term Certificates, to be redeemed shall be selected and designated by the City and if less than all of a maturity, or sinking fund installments in the case of Term Certificates, is to be redeemed, the Paying Agent/Registrar shall determine by lot or other customary random method the Certificates, or a portion thereof, within such maturity, or sinking fund installments in the case of Term Certificates, to be redeemed (provided that a portion of a Certificate may be redeemed only in an integral multiple of $5,000). THE CERTIFICATES maturing on August 15, 20__ (the "Term Certificates") are subject to mandatory sinking fund redemption prior to maturity in the following amounts, on the following dates and at a price of par plus accrued interest to the redemption date. Certificates Maturing August 15, 20__ Redemption Date Principal Amount August 15, 20__ $ August 15, 20__* *Final Maturity THE PRINCIPAL AMOUNT of the Term Certificates required to be redeemed pursuant to the operation of the mandatory sinking fund redemption provisions shall be reduced, at the option of the City by the principal amount of any Term Certificates of the stated maturity which, at least 50 days prior to a mandatory redemption date, (1) shall have been acquired by the City, at a price not exceeding the principal amount of such Term Certificates plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation, (2) shall 12 Huntsville\CO\2020: Ordinance have been purchased and canceled by the Paying Agent/Registrar at the request of the City with monies in the Interest and Sinking Fund at a price not exceeding the principal amount of the Term Certificates plus accrued interest to the date of purchase thereof, or (3) shall have been redeemed pursuant to the optional redemption provisions and not theretofore credited against a mandatory sinking fund redemption requirement. NO LESS THAN 30 days prior to the date fixed for any optional redemption, the City shall cause the Paying Agent/Registrar to send notice by United States mail, first-class postage prepaid to the Registered Owner of each Certificate to be redeemed at its address as it appeared on the Registration Books of the Paying Agent/Registrar at the close of business on the 45th day prior to the redemption date; provided, however, that the failure to send, mail or receive such notice, or any defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any Certificates. By the date fixed for any such redemption due provision shall be made with the Paying Agent/Registrar for the payment of the required redemption price for the Certificates or portions thereof which are to be so redeemed. If due provision for such payment is made, all as provided above, the Certificates or portions thereof which are to be so redeemed thereby automatically shall be treated as redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right of the Registered Owner to receive the redemption price from the Paying Agent/Registrar out of the funds provided for such payment. If a portion of any Certificates shall be redeemed a substitute Certificate or Certificates having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the Registered Owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the Registered Owner upon the surrender thereof for cancellation, at the expense of the City, all as provided in the Ordinance. WITH RESPECT TO any optional redemption of the Certificates, unless certain prerequisites to such redemption required by the Ordinance have been met and moneys sufficient to pay the principal of and premium, if any, and interest on the Certificates to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice shall state that said redemption may, at the option of the City, be conditional upon the satisfaction of such prerequisites and receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such redemption, or upon any prerequisite set forth in such notice of redemption. If a conditional notice of redemption is given and such prerequisites to the redemption and sufficient moneys are not received, such notice shall be of no force and effect, the City shall not redeem such Certificates and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Certificates have not been redeemed. ALL CERTIFICATES OF THIS SERIES are issuable solely as fully registered Certificates, without interest coupons, in the denomination of any integral multiple of $5,000. As provided in the Ordinance, this Certificate, or any unredeemed portion hereof, may, at the request of the Registered Owner or the assignee or assignees hereof, be assigned, transferred, converted into and exchanged for a like aggregate principal amount of fully registered Certificates, without interest coupons, payable to the appropriate Registered Owner, assignee or assignees, as the case may be, having the same denomination or denominations in any integral multiple of $5,000 as 13 Huntsville\CO\2020: Ordinance requested in writing by the appropriate Registered Owner, assignee or assignees, as the case may be, upon surrender of this Certificate to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Ordinance. Among other requirements for such assignment and transfer, this Certificate must be presented and surrendered to the Paying Agent/Registrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment of this Certificate or any portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees in whose name or names this Certificate or any such portion or portions hereof is or are to be registered. The form of Assignment printed or endorsed on this Certificate may be executed by the Registered Owner to evidence the assignment hereof, but such method is not exclusive, and other instruments of assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Certificate or any portion or portions hereof from time to time by the Registered Owner. The Paying Agent/Registrar's reasonable standard or customary fees and charges for assigning, transferring, converting and exchanging any Certificate or portion thereof will be paid by the City. In any circumstance, any taxes or governmental charges required to be paid with respect thereto shall be paid by the one requesting such assignment, transfer, conversion or exchange, as a condition precedent to the exercise of such privilege. The Paying Agent/Registrar shall not be required to make any such transfer, conversion, or exchange during the period commencing on the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date. WHENEVER the beneficial ownership of this Certificate is determined by a book entry at a securities depository for the Certificates, the foregoing requirements of holding, delivering or transferring this Certificate shall be modified to require the appropriate person or entity to meet the requirements of the securities depository as to registering or transferring the book entry to produce the same effect. IN THE EVENT any Paying Agent/Registrar for the Certificates is changed by the City, resigns, or otherwise ceases to act as such, the City has covenanted in the Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and cause written notice thereof to be mailed to the Registered Owners of the Certificates. 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 authorization, issuance, and delivery of this Certificate have been performed, existed, and been done in accordance with law; and that ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Certificate, as such interest comes due, and as such principal matures, have been levied and ordered to be levied against all taxable property in the City, and have been pledged for such payment, within the limit prescribed by law. BY BECOMING the Registered Owner of this Certificate, the Registered Owner thereby acknowledges all of the terms and provisions of the Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the City, and agrees that the terms and provisions of this Certificate and the Ordinance constitute a contract between each Registered Owner hereof and the City. 14 Huntsville\CO\2020: Ordinance IN WITNESS WHEREOF, the City has caused this Certificate to be signed with the manual or facsimile signature of the Mayor or Mayor Pro-Tem of the City and countersigned with the manual or facsimile signature of the City Secretary and has caused the official seal of the City to be duly impressed, or placed in facsimile, on this Certificate. _____________________________________ ____________________________________ City Secretary Mayor [Mayor Pro-Tem] (SEAL) FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE (To be executed if this Certificate is not accompanied by an executed Registration Certificate of the Comptroller of Public Accounts of the State of Texas) It is hereby certified that this Certificate has been issued under the provisions of the Certificate Ordinance described in the text of this Certificate; and that this Certificate has been issued in conversion or replacement of, or in exchange for, a certificate, certificates, or a portion of a certificate or certificates of a Series which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. Dated _______________ ZB, NATIONAL ASSOCIATION dba AMEGY BANK Paying Agent/Registrar By _________________________________ Authorized Representative FORM OF ASSIGNMENT ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ______________________________________________________________________________ ______________________________________________________________________________ Please insert Social Security or Taxpayer Identification Number of Transferee ______________________________________________________________________________ 15 Huntsville\CO\2020: Ordinance _____________________________________________________________________________ (Please print or typewrite name and address, including zip code, of Transferee) _____________________________________________________________________________ the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints ___________________________________________, attorney, to register the transfer of the within Certificate on the books kept for registration thereof, with full power of substitution in the premises. Dated: ___________________________ Signature Guaranteed: ___________________________________ ___________________________________ NOTICE: Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. NOTICE: The signature above must correspond with the name of the Registered Owner as it appears upon the front of this Certificate in every particular, without alteration or enlargement or any change whatsoever. FORM OF REGISTRATION CERTIFICATE OF THE COMPTROLLER OF PUBLIC ACCOUNTS 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 registered by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this ________________________________. ______________________________ Comptroller of Public Accounts of the State of Texas (COMPTROLLER'S SEAL) INSERTIONS FOR THE INITIAL CERTIFICATE The initial Certificate shall be in the form set forth in this Section, except that: A. immediately under the name of the Certificate, the headings "INTEREST RATE" and "MATURITY DATE" shall both be completed with the words "As shown below" and "CUSIP NO." shall be deleted. 16 Huntsville\CO\2020: Ordinance B. the first paragraph shall be deleted and the following will be inserted: "ON THE MATURITY DATE SPECIFIED ABOVE, the City of Huntsville, Texas (the "City"), being a political subdivision, hereby promises to pay to the Registered Owner specified above, or registered assigns (hereinafter called the "Registered Owner"), on August 1 in each of the years, in the principal installments and bearing interest at the per annum rates set forth in the following schedule: Year Amount Rate (Information from Sections 2 and 3 to be inserted) The City promises to pay interest on the unpaid principal amount hereof (calculated on the basis of a 360-day year of twelve 30-day months) from the date of initial delivery of the Certificates at the respective Interest Rate per annum specified above. Interest is payable on February 15, 2021 and semiannually on each August 15 and February 15 thereafter to the date of payment of the principal installment specified above; except, that if this Certificate is required to be authenticated and the date of its authentication is after any Record Date (hereinafter defined) but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date; provided, however, that if on the date of authentication hereof the interest on the Certificate or Certificates, if any, for which this Certificate is being exchanged is due but has not been paid, then this Certificate shall bear interest from the date to which such interest has been paid in full." C. The initial Certificate shall be numbered "T-1." Section 6. INTEREST AND SINKING FUND. A special "Interest and Sinking Fund" is hereby created and shall be established and maintained by the City at an official depository bank of said City. Said Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of said City, and shall be used only for paying the interest on and principal of said Certificates. All ad valorem taxes levied and collected for and on account of said Certificates shall be deposited, as collected, to the credit of said Interest and Sinking Fund. During each year while any of said Certificates are outstanding and unpaid, the governing body of said 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 adequate to pay the principal of said Certificates as such principal matures (but never less than 2% of the original principal amount of said Certificates as a sinking fund each year); and said tax shall be based on the latest approved tax rolls of said City, with full allowances being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in said 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 for such payment, within the limit prescribed by law. Accrued interest on the Certificates shall be deposited in the Interest and Sinking Fund and used to pay interest on the Certificates. 17 Huntsville\CO\2020: Ordinance Section 7. REVENUES. The Certificates together with other obligations of the City, are additionally secured by and shall be payable from and secured by a subordinate lien limited pledge of the surplus revenues of the City's water and wastewater system, which amount shall not exceed $1,000, constituting "Surplus Revenues." The City shall deposit such Surplus Revenues to the credit of the Interest and Sinking Fund created pursuant to Section 6, to the extent necessary to pay the principal and interest on the Certificates. Notwithstanding the requirements of Section 6, if Surplus Revenues or other lawfully available funds are actually on deposit or budgeted for deposit in the Interest and Sinking Fund in advance of the time when ad valorem taxes are scheduled to be levied for any year, then the amount of taxes which otherwise would have been required to be levied pursuant to Section 6 may be reduced to the extent and by the amount of the Surplus Revenues or other lawfully available funds then on deposit in the Interest and Sinking Fund or budgeted for deposit therein. The Mayor and the Director of Finance of the City are hereby ordered to do any and all things necessary to accomplish the transfer of monies to the Interest and Sinking Fund of this issue in ample time to pay such items of principal and interest. Section 8. DEFEASANCE OF CERTIFICATES. (a) Any Certificate and the interest thereon shall be deemed to be paid, retired and no longer outstanding (a "Defeased Certificate") within the meaning of this Ordinance, except to the extent provided in subsections (c) and (e) of this Section, when payment of the principal of such Certificate, plus interest thereon to the due date or dates (whether such due date or dates be by reason of maturity, upon redemption, or otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof (including the giving of any required notice of redemption) or (ii) shall have been provided for on or before such due date by irrevocably depositing with or making available to the Paying Agent/Registrar or a commercial bank or trust company for such payment (1) lawful money of the United States of America sufficient to make such payment, (2) Defeasance Securities, certified by an independent public accounting firm of national reputation to mature as to principal and interest in such amounts and at such times as will ensure the availability, without reinvestment, of sufficient money to provide for such payment and when proper arrangements have been made by the City with the Paying Agent/Registrar or a commercial bank or trust company for the payment of its services until all Defeased Certificates shall have become due and payable or (3) any combination of (1) and (2). At such time as a Certificate shall be deemed to be a Defeased Certificate hereunder, as aforesaid, such Certificate and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits of, the ad valorem taxes herein levied as provided in this Ordinance, and such principal and interest shall be payable solely from such money or Defeasance Securities. (b) The deposit under clause (ii) of subsection (a) shall be deemed a payment of a Certificate as aforesaid when proper notice of redemption of such Certificates shall have been given, in accordance with this Ordinance. Any money so deposited with the Paying Agent/Registrar or a commercial bank or trust company as provided in this Section may at the discretion of the City Council also be invested in Defeasance Securities, maturing in the amounts and at the times as hereinbefore set forth, and all income from all Defeasance Securities in possession of the Paying Agent/Registrar or a commercial bank or trust company pursuant to this Section which is not required for the payment of such Certificate and premium, if any, and interest thereon with respect to which such money has been so deposited, shall be remitted to the City Council. 18 Huntsville\CO\2020: Ordinance (c) Notwithstanding any provision of any other Section of this Ordinance which may be contrary to the provisions of this Section, all money or Defeasance Securities set aside and held in trust pursuant to the provisions of this Section for the payment of principal of the Certificates and premium, if any, and interest thereon, shall be applied to and used solely for the payment of the particular Certificates and premium, if any, and interest thereon, with respect to which such money or Defeasance Securities have been so set aside in trust. Until all Defeased Certificates shall have become due and payable, the Paying Agent/Registrar shall perform the services of Paying Agent/Registrar for such Defeased Certificates the same as if they had not been defeased, and the City shall make proper arrangements to provide and pay for such services as required by this Ordinance. (d) Notwithstanding anything elsewhere in this Ordinance, if money or Defeasance Securities have been deposited or set aside with the Paying Agent/Registrar or a commercial bank or trust company pursuant to this Section for the payment of Certificates and such Certificates shall not have in fact been actually paid in full, no amendment of the provisions of this Section shall be made without the consent of the registered owner of each Certificate affected thereby. (e) Notwithstanding the provisions of subsection (a) immediately above, to the extent that, upon the defeasance of any Defeased Certificate to be paid at its maturity, the City retains the right under Texas law to later call that Defeased Certificate for redemption in accordance with the provisions of the Ordinance authorizing its issuance, the City may call such Defeased Certificate for redemption upon complying with the provisions of Texas law and upon the satisfaction of the provisions of subsection (a) immediately above with respect to such Defeased Certificate as though it was being defeased at the time of the exercise of the option to redeem the Defeased Certificate and the effect of the redemption is taken into account in determining the sufficiency of the provisions made for the payment of the Defeased Certificate. As used in this section, "Defeasance Securities" means (i) Federal Securities, (ii) noncallable obligations of an agency or instrumentality of the United States of America, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the City Council adopts or approves proceedings authorizing the issuance of refunding certificates or otherwise provide for the funding of an escrow to effect the defeasance of the Certificates are rated as to investment quality by a nationally recognized investment rating firm not less than "AAA" or its equivalent, (iii) noncallable obligations of a state or an agency or a City, municipality, or other political subdivision of a state that have been refunded and that, on the date the City Council adopts or approves proceedings authorizing the issuance of refunding certificates or otherwise provide for the funding of an escrow to effect the defeasance of the Certificates, are rated as to investment quality by a nationally recognized investment rating firm no less than "AAA" or its equivalent and (iv) any other then authorized securities or obligations under applicable state law that may be used to defease obligations such as the Certificates. "Federal Securities" as used herein means direct, noncallable obligations of the United States of America, including obligations that are unconditionally guaranteed by the United States of America. Section 9. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED CERTIFICATES. (a) Replacement Certificates. In the event any outstanding Certificate is damaged, mutilated, lost, stolen or destroyed, the Paying Agent/Registrar shall cause to be printed, executed and delivered, a new certificate of the same principal amount, maturity and interest rate, 19 Huntsville\CO\2020: Ordinance as the damaged, mutilated, lost, stolen or destroyed Certificate, in replacement for such Certificate in the manner hereinafter provided. (b) Application for Replacement Certificates. Application for replacement of damaged, mutilated, lost, stolen or destroyed Certificates shall be made by the Registered Owner thereof to the Paying Agent/Registrar. In every case of loss, theft or destruction of a Certificate, the Registered Owner applying for a replacement certificate shall furnish to the City and to the Paying Agent/Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft or destruction of a Certificate, the Registered Owner shall furnish to the City and to the Paying Agent/Registrar evidence to their satisfaction of the loss, theft or destruction of such Certificate, as the case may be. In every case of damage or mutilation of a Certificate, the Registered Owner shall surrender to the Paying Agent/Registrar for cancellation the Certificate so damaged or mutilated. (c) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in the event any such Certificate shall have matured, and no default has occurred which is then continuing in the payment of the principal of, redemption premium, if any, or interest on the Certificate, the City may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Certificate) instead of issuing a replacement Certificate, provided security or indemnity is furnished as above provided in this Section. (d) Charge for Issuing Replacement Certificates. Prior to the issuance of any replacement certificate, the Paying Agent/Registrar shall charge the Registered Owner of such Certificate with all legal, printing, and other expenses in connection therewith. Every replacement certificate issued pursuant to the provisions of this Section by virtue of the fact that any Certificate is lost, stolen or destroyed shall constitute a contractual obligation of the City whether or not the lost, stolen or destroyed Certificate shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Certificates duly issued under this Ordinance. (e) Authority for Issuing Replacement Certificates. In accordance with Subchapter D of Chapter 1201, Texas Government Code, this Section 9 of this Ordinance shall constitute authority for the issuance of any such replacement certificate without necessity of further action by the governing body of the City or any other body or person, and the duty of the replacement of such certificates is hereby authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent/Registrar shall authenticate and deliver such Certificates in the form and manner and with the effect, as provided in Section 4(a) of this Ordinance for Certificates issued in conversion and exchange for other Certificates. 20 Huntsville\CO\2020: Ordinance Section 10. CUSTODY, APPROVAL, AND REGISTRATION OF CERTIFICATES; BOND COUNSEL'S OPINION; CUSIP NUMBERS AND CONTINGENT INSURANCE PROVISION, IF OBTAINED. The Mayor of the City is hereby authorized to have control of the Certificates initially issued and delivered hereunder and all necessary records and proceedings 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. Upon registration of the Certificates said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate attached to such Certificates, and the seal of said Comptroller shall be impressed, or placed in facsimile, on such Certificate. The approving legal opinion of the City's Bond Counsel and the assigned CUSIP numbers may, at the option of the City, be printed on the Certificates issued and delivered under this Ordinance, but neither shall have any legal effect, and shall be solely for the convenience and information of the Registered Owners of the Certificates. In addition, if bond insurance is obtained, the Certificates may bear an appropriate legend as provided by the insurer. Section 11. COVENANTS REGARDING TAX EXEMPTION OF INTEREST ON THE CERTIFICATES. (a) Covenants. The City covenants to take any action necessary to assure, or refrain from any action which would adversely affect, the treatment of the Certificates as obligations described in section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), the interest on which is not includable in the "gross income" of the holder for purposes of federal income taxation. In furtherance thereof, the City covenants as follows: (1) to take any action to assure that no more than 10 percent of the proceeds of the Certificates or the projects financed therewith (less amounts deposited to a reserve fund, if any) are used for any "private business use," as defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds or the projects financed therewith are so used, such amounts, whether or not received by the City, with respect to such private business use, do not, under the terms of this Order or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt service on the Certificates, in contravention of section 141(b)(2) of the Code; (2) to take any action to assure that in the event that the "private business use" described in subsection (1) hereof exceeds 5 percent of the proceeds of the Certificates or the projects financed therewith (less amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used for a "private business use" which is "related" and not "disproportionate," within the meaning of section 141(b)(3) of the Code, to the governmental use; (3) to take any action to assure that no amount which is greater than the lesser of $5,000,000, or 5 percent of the proceeds of the Certificates (less amounts deposited into a reserve fund, if any) is directly or indirectly used to finance loans to persons, other than state or local governmental units, in contravention of section 141(c) of the Code; (4) to refrain from taking any action which would otherwise result in the Certificates being treated as "private activity Certificates" within the meaning of section 141(b) of the Code; 21 Huntsville\CO\2020: Ordinance (5) to refrain from taking any action that would result in the Certificates being "federally guaranteed" within the meaning of section 149(b) of the Code; (6) to refrain from using any portion of the proceeds of the Certificates, directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the Certificates, other than investment property acquired with -- (A) proceeds of the Certificates invested for a reasonable temporary period of 3 years or less or, in the case of a refunding Certificate, for a period of 90 days or less until such proceeds are needed for the purpose for which the Certificates are issued, (B) amounts invested in a bona fide debt service fund, within the meaning of section l.148-1(b) of the Treasury Regulations, and (C) amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do not exceed 10 percent of the proceeds of the Certificates; (7) to otherwise restrict the use of the proceeds of the Certificates or amounts treated as proceeds of the Certificates, as may be necessary, so that the Certificates do not otherwise contravene the requirements of section 148 of the Code (relating to arbitrage); (8) to refrain from using the proceeds of the Certificates or proceeds of any prior Certificates to pay debt service on another issue more than 90 days after the date of issue of the Certificates in contravention of the requirements of section 149(d) of the Code (relating to advance refundings); and (9) to pay to the United States of America at least once during each five-year period (beginning on the date of delivery of the Certificates) an amount that is at least equal to 90 percent of the "Excess Earnings," within the meaning of section 148(f) of the Code and to pay to the United States of America, not later than 60 days after the Certificates have been paid in full, 100 percent of the amount then required to be paid as a result of Excess Earnings under section 148(f) of the Code. (b) Rebate Fund. In order to facilitate compliance with the above covenant (8), a "Rebate Fund" is hereby established by the City for the sole benefit of the United States of America, and such fund shall not be subject to the claim of any other person, including without limitation the Certificateholders. The Rebate Fund is established for the additional purpose of compliance with section 148 of the Code. (c) Proceeds. The City understands that the term "proceeds" includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of refunding Certificates, transferred proceeds (if any) and proceeds of the refunded Certificates expended prior to the date of issuance of the Certificates. It is the understanding of the City that the covenants contained herein are intended to assure compliance with the Code and any regulations or rulings promulgated 22 Huntsville\CO\2020: Ordinance by the U.S. Department of the Treasury pursuant thereto. In the event that regulations or rulings are hereafter promulgated which modify or expand provisions of the Code, as applicable to the Certificates, the City will not be required to comply with any covenant contained herein to the extent that such failure to comply, in the opinion of nationally recognized Certificate counsel, will not adversely affect the exemption from federal income taxation of interest on the Certificates under section 103 of the Code. In the event that regulations or rulings are hereafter promulgated which impose additional requirements which are applicable to the Certificates, the City agrees to comply with the additional requirements to the extent necessary, in the opinion of nationally recognized Certificate counsel, to preserve the exemption from federal income taxation of interest on the Certificates under section 103 of the Code. In furtherance of such intention, the City hereby authorizes and directs the City Manager or Director of Finance to execute any documents, certificates or reports required by the Code and to make such elections, on behalf of the City, which may be permitted by the Code as are consistent with the purpose for the issuance of the Certificates. (d) Allocation Of, and Limitation On, Expenditures for the Project. The City covenants to account for the expenditure of sale proceeds and investment earnings to be used for the purposes described in Section 1 of this Order (the "Project") on its books and records in accordance with the requirements of the Internal Revenue Code. The City recognizes that in order for the proceeds to be considered used for the reimbursement of costs, the proceeds must be allocated to expenditures within 18 months of the later of the date that (1) the expenditure is made, or (2) the Project is completed; but in no event later than three years after the date on which the original expenditure is paid. The foregoing notwithstanding, the City recognizes that in order for proceeds to be expended under the Internal Revenue Code, the sale proceeds or investment earnings must be expended no more than 60 days after the earlier of (1) the fifth anniversary of the delivery of the Certificates, or (2) the date the Certificates are retired. The City agrees to obtain the advice of nationally-recognized Certificate counsel if such expenditure fails to comply with the foregoing to assure that such expenditure will not adversely affect the tax-exempt status of the Certificates. For purposes hereof, the City shall not be obligated to comply with this covenant if it obtains an opinion that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of the interest. (e) Disposition of Project. The City covenants that the property constituting the Project will not be sold or otherwise disposed in a transaction resulting in the receipt by the City of cash or other compensation, unless any action taken in connection with such disposition will not adversely affect the tax-exempt status of the Certificates. For purpose of the foregoing, the City may rely on an opinion of nationally-recognized Certificate counsel that the action taken in connection with such sale or other disposition will not adversely affect the tax-exempt status of the Certificates. For purposes of the foregoing, the portion of the property comprising personal property and disposed in the ordinary course shall not be treated as a transaction resulting in the receipt of cash or other compensation. For purposes hereof, the City shall not be obligated to comply with this covenant if it obtains an opinion that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of the interest. (f) Reimbursement. This Ordinance is intended to satisfy the official intent requirements set forth in section 1.150-2 of the Treasury Regulations. 23 Huntsville\CO\2020: Ordinance Section 12. SALE OF CERTIFICATES. The Certificates are hereby sold pursuant to the taking of public bids therefor to the bidder whose bid produced the lowest true interest cost and shall be delivered to _______________ (the "Initial Purchaser") at a price of $__________ which is __________% of the par amount of the Certificates. The City Council hereby finds and determines that the net effective interest rate on the Certificates, as calculated pursuant to Chapter 1204, Texas Government Code, as amended is __________%. The true interest cost on the Certificates is __________%. It is hereby officially found and determined that the terms of this sale are the most advantageous reasonably obtainable as of the date hereof. The Certificates shall initially be registered in the name of Cede & Co. Section 13. DEFAULT AND REMEDIES. (a) Events of Default. Each of the following occurrences or events for the purpose of this Ordinance is hereby declared to be an Event of Default: (i) the failure to make payment of the principal of or interest on any of the Certificates when the same becomes due and payable; or (ii) default in the performance or observance of any other covenant, agreement or obligation of the City, the failure to perform which materially, adversely affects the rights of the Registered Owners of the Certificates, including, but not limited to, their prospect or ability to be repaid in accordance with this Ordinance, and the continuation thereof for a period of 60 days after notice of such default is given by any Registered Owner to the City. (b) Remedies for Default. (i) Upon the happening of any Event of Default, then and in every case, any Registered Owner or an authorized representative thereof, including, but not limited to, a trustee or trustees therefor, may proceed against the City, or any official, officer or employee of the City in their official capacity, for the purpose of protecting and enforcing the rights of the Registered Owners under this Ordinance, by mandamus or other suit, action or special proceeding in equity or at law, in any court of competent jurisdiction, for any relief permitted by law, including the specific performance of any covenant or agreement contained herein, or thereby to enjoin any act or thing that may be unlawful or in violation of any right of the Registered Owners hereunder or any combination of such remedies. (ii) It is provided that all such proceedings shall be instituted and maintained for the equal benefit of all Registered Owners of Certificates then outstanding. (c) Remedies Not Exclusive. (i) No remedy herein conferred or reserved is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or under the Certificates or now or hereafter existing at law or in equity; provided, however, that notwithstanding any other provision of this Ordinance, the right to accelerate the debt evidenced by the Certificates shall not be available as a remedy under this Ordinance. 24 Huntsville\CO\2020: Ordinance (ii) The exercise of any remedy herein conferred or reserved shall not be deemed a waiver of any other available remedy. (iii) By accepting the delivery of a Certificate authorized under this Ordinance, such Registered Owner agrees that the certifications required to effectuate any covenants or representations contained in this Ordinance do not and shall never constitute or give rise to a personal or pecuniary liability or charge against the officers, employees or trustees of the City or the City Council. (iv) None of the members of the City Council, nor any other official or officer, agent, or employee of the City, shall be charged personally by the Registered Owners with any liability, or be held personally liable to the Registered Owners under any term or provision of this Ordinance, or because of any Event of Default or alleged Event of Default under this Ordinance. Section 14. INTEREST EARNINGS ON CERTIFICATE PROCEEDS. Interest earnings derived from the investment of proceeds from the sale of the Certificates shall be used along with other certificate proceeds for the purpose for which the Certificates are issued set forth in Section 1 hereof; provided that after completion of such purpose, if any of such interest earnings remain on hand, such interest earnings shall be deposited in the Interest and Sinking Fund. It is further provided, however, that any interest earnings on certificate proceeds which are required to be rebated to the United States of America pursuant to Section 11 hereof in order to prevent the Certificates from being arbitrage certificates shall be so rebated and not considered as interest earnings for the purposes of this Section. Section 15. APPROVAL OF PAYING AGENT/REGISTRAR AGREEMENT, LETTER OF REPRESENTATIONS AND OFFICIAL STATEMENT. Each of the Mayor, City Manager and Director of Finance are hereby authorized to execute a Paying Agent/Registrar Agreement with the Paying Agent/Registrar in connection with the issuance of the Certificates. The Paying Agent/Registrar Agreement shall be in substantially the form previously approved by the City in connection with the City’s outstanding certificates with such changes that the officer executing such agreement may approve with such approval to be conclusively evidenced by execution of the Paying Agent/Registrar Agreement. The City hereby approves the form and content of the Official Statement relating to the Certificates and any addenda, supplement or amendment thereto, and approves the distribution of such Official Statement in the reoffering of the Certificates by the Initial Purchaser in final form, with such changes therein or additions thereto as the officer executing the same may deem advisable, such determination to be conclusively evidenced by his execution thereof. The distribution and use of the Preliminary Official Statement dated __________, 2020, prior to the date hereof is ratified and confirmed. The City Council of the City hereby finds and determines that the Preliminary Official Statement and the Official Statement were and are "deemed final" (as that term is defined in 17 C.F.R. Section 240.15c-12) as of their respective dates. Section 16. CONTINUING DISCLOSURE UNDERTAKING. (a) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: "Financial Obligation" means a (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of a debt obligation or any such derivative instrument; provided that "financial Obligation" shall not include municipal securities (as defined in the Securities Exchange 25 Huntsville\CO\2020: Ordinance Act of 1934, as amended) as to which a final official statement (as defined in the Rule) has been provided to the MSRB consistent with Rule. "MSRB" means the Municipal Securities Rulemaking Board. "Rule" means SEC Rule 15c2-12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission. (b) Annual Reports. The City shall provide annually to the MSRB, in an electronic format as prescribed by the MSRB, (i) within six months after the end of each fiscal year of the City ending in or after 2020, financial information and operating data, which information and data may be unaudited, with respect to the City of the general type included in the final Official Statement authorized by Section 15 of this Ordinance, being the information described in Exhibit "A" hereto, including financial statements of the City if audited financial statements of the City are then available and (ii) if not provided as part of such financial information and operating data, audited financial statements of the City, within twelve months after the end of each fiscal year of the City ending in or after 2020. Any financial statements to be so provided shall be (1) prepared in accordance with the accounting principles described in Exhibit "A" hereto, or such other accounting principles as the City may be required to employ from time to time pursuant to state law or regulation, and (2) audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not complete within such period, then the City shall provide unaudited financial statements within such period, and audited financial statements for the applicable fiscal year to the MSRB, when and if the audit report on such statements become available. If the City changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document that is available to the public on the MSRB's internet web site or filed with the SEC. All documents provided to the MSRB pursuant to this Section shall be accompanied by identifying information as prescribed by the MSRB. (c) Event Notices. The City shall file notice to notify the MSRB of any of the following events with respect to the Certificates in a timely manner and not more than ten business days after the occurrence of the event: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults, if material; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 26 Huntsville\CO\2020: Ordinance 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701–TEB) or other material notices or determinations with respect to the tax status of the Certificates, or other events affecting the tax status of the Certificates 7. Modifications to rights of holders of the Certificates, if material; 8. Certificate calls, if material, and tender offers; 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the Certificates, if material; 11. Rating changes; 12. Bankruptcy, insolvency, receivership or similar event of the City; 13. The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; 14. Appointment of a successor or additional trustee or the change of name of a trustee, if material; 15. Incurrence of a Financial Obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the City, any of which affect security holder, if material; and 16. Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the City, any of which reflect financial difficulties. For these purposes, (a) any event described in the immediately preceding paragraph (12) is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers of the City in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or 27 Huntsville\CO\2020: Ordinance governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City, and (b) the City intends the words used in the immediately preceding paragraphs (15) and (16) and the definition of Financial Obligation in this Section to have the same meanings as when they are used in the Rule, as ascribed by SEC Release No. 34-83885, dated August 20, 2018. The City shall notify the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such subsection. All documents provided to the MSRB pursuant to this Section shall be accompanied by identifying information as prescribed by the MSRB. (d) Limitations, Disclaimers, and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an "obligated person" with respect to the Certificates within the meaning of the Rule, except that the City in any event will give notice of any deposit made in accordance with Section 8 of this Ordinance that causes the Certificates no longer to be outstanding. The provisions of this Section are for the sole benefit of the holders and beneficial owners of the Certificates, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Certificates at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall comprise a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Should the Rule be amended to obligate the City to make filings with or provide notices to entities other than the MSRB, the City hereby agrees to undertake such obligation with respect to the Certificates in accordance with the Rule as amended. 28 Huntsville\CO\2020: Ordinance Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Certificates in the primary offering of the Certificates in compliance with the Rule, taking into account any amendments or interpretations of the Rule since such offering as well as such changed circumstances and (2) either (a) the holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the outstanding Certificates consents to such amendment or (b) a person that is unaffiliated with the City (such as nationally recognized Certificate counsel) determines that such amendment will not materially impair the interest of the holders and beneficial owners of the Certificates. If the City so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided in accordance with paragraph (b) of this Section an explanation, in narrative form, of the reason for the amendment and of the impact of any change in the type of financial information or operating data so provided. The City may also amend or repeal the provisions of this continuing disclosure agreement if the SEC amends or repeals the applicable provision of the Rule or a court of final jurisdiction enters judgment that such provisions of the Rule are invalid, but only if and to the extent that the provisions of this sentence would not prevent an underwriter from lawfully purchasing or selling Certificates in the primary offering of the Certificates. (e) Format, Identifying Information, and Incorporation by Reference. All financial information, operating data, financial statements, and notices required by this Section to be provided to the MSRB shall be provided in an electronic format and be accompanied by identifying information prescribed by the MSRB. Financial information and operating data to be provided pursuant to Subsection (b) of this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document) available to the public on the MSRB's Internet Web site or filed with the SEC. Section 17. NO RECOURSE AGAINST CITY OFFICIALS. No recourse shall be had for the payment of principal of or interest on any Certificates or for any claim based thereon or on this Ordinance against any official of the City or any person executing any Certificates. Section 18. FURTHER ACTIONS. The officers and employees of the City are hereby authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the City all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance, the Certificates, the initial sale and delivery of the Certificates, the Paying Agent/Registrar Agreement, any insurance commitment letter or insurance policy and the Official Statement. In addition, prior to the initial delivery of the Certificates, the Mayor, the City Manager or Assistant City Manager, the City Attorney and Bond Counsel are hereby authorized and directed to approve any technical changes or corrections to this Ordinance or to any of the instruments authorized and approved by this Ordinance necessary in order to (i) correct any ambiguity or mistake or properly or more 29 Huntsville\CO\2020: Ordinance completely document the transactions contemplated and approved by this Ordinance and as described in the Official Statement, (ii) obtain a rating from any of the national bond rating agencies or satisfy requirements of the Bond Insurer, or (iii) obtain the approval of the Certificates by the Texas Attorney General's office. In case any officer of the City whose signature shall appear on any Certificate shall cease to be such officer before the delivery of such Certificate, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. Section 19. INTERPRETATIONS. All terms defined herein and all pronouns used in this Ordinance shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the articles and sections of this Ordinance and the Table of Contents of this Ordinance have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof. This Ordinance and all the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of the Certificates and the validity of the lien on and pledge of the Pledged Revenues to secure the payment of the Certificates. Section 20. INCONSISTENT PROVISIONS. All ordinances, orders or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict and the provisions of this Ordinance shall be and remain controlling as to the matters contained herein. Section 21. INTERESTED PARTIES. Nothing in this Ordinance expressed or implied is intended or shall be construed to confer upon, or to give to, any person or entity, other than the City and the registered owners of the Certificates, any right, remedy or claim under or by reason of this Ordinance or any covenant, condition or stipulation hereof, and all covenants, stipulations, promises and agreements in this Ordinance contained by and on behalf of the City shall be for the sole and exclusive benefit of the City and the registered owners of the Certificates. Section 22. INCORPORATION OF RECITALS. The City hereby finds that the statements set forth in the recitals of this Ordinance are true and correct, and the City hereby incorporates such recitals as a part of this Ordinance. Section 23. SEVERABILITY. If any provision of this Ordinance or the application thereof to any circumstance shall be held to be invalid, the remainder of this Ordinance and the application thereof to other circumstances shall nevertheless be valid, and this governing body hereby declares that this Ordinance would have been enacted without such invalid provision. Section 24. REPEALER. All orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent of such inconsistency. Section 25. EFFECTIVE DATE. This Ordinance shall become effect immediately from and after its passage on first and final reading in accordance with Section 1201.028, Texas Government Code, as amended. Section 26. PERFECTION. Chapter 1208, Government Code, applies to the issuance of the Certificates and the pledge of ad valorem taxes and surplus net revenues granted by the City under Sections 6 and 7 of this Ordinance, and such pledge is therefore valid, effective and 30 Huntsville\CO\2020: Ordinance perfected. If Texas law is amended at any time while the Certificates are outstanding and unpaid such that the pledge of ad valorem taxes and surplus net revenues granted by the City under Sections 6 and 7 of this Ordinance is to be subject to the filing requirements of Chapter 9, Business & Commerce Code, then in order to preserve to the registered owners of the Certificates the perfection of the security interest in said pledge, the City agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Chapter 9, Business & Commerce Code and enable a filing to perfect the security interest in said pledge to occur. Huntsville\CO\2020: Ordinance IN ACCORDANCE WITH SECTION 1201.028, Texas Government Code, finally passed, approved and effective on this 18th day of August 2020. THE CITY OF HUNTSVILLE, TEXAS ______________________________________ Andy Brauninger, Mayor City of Huntsville, Texas ATTEST: _______________________________ Brenda Poe, City Secretary APPROVED AS TO FORM: ______________________________ Leonard Schneider, City Attorney A-1 Huntsville\CO\2020: Ordinance EXHIBIT "A" DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 16 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: (1) Table 1 – Valuation, Exemptions and General Obligation Debt; (2) Table 2 – Taxable Assessed Valuations by Category; (3) Table 3 – Valuation and General Obligation Debt History; (4) Table 4 – Tax Rate, Levy and Collection History; (5) Table 5 – Ten Largest Taxpayers; (6) Table 6 – Tax Adequacy; (7) Table 8 – Pro-Forma General Obligation Debt Service Requirements; (8) Table 9 – Interest and Sinking Fund Budget Projection; (9) Table 10 – Computation of Self-Supporting Debt; (10) Table 11 – Authorized But Unissued General Obligation Bonds; (11) Table 12 – Other Obligations; (12) Table 13 – Change in Net Assets; (13) Table 13A – General Fund Revenues and Expenditure History; (14) Table 14 – Municipal Sales Tax History; and (15) Table 15 – Current Investments. (16) Appendix B. Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to in Appendix B to the Official Statement. M E M O R A N D U M DATE: August 18, 2020 TO: Leonard Schneider, City Attorney City of Huntsville, Texas FROM: C. D. Polumbo RE: Huntsville Combination Tax and Revenue Certificates of Obligation, Series 2020 As Bond Counsel to the City of Huntsville, Texas I hereby approve the form of the Ordinance for the meeting on August 18, 2020 which is the Ordinance 2020-39, ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF HUNTSVILLE, TEXAS COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 2020; AUTHORIZING THE LEVY OF AN AD VALOREM TAX AND THE PLEDGE OF CERTAIN REVENUES IN SUPPORT OF THE CERTIFICATES; APPROVING AN OFFICIAL STATEMENT AND A PAYING AGENT/REGISTRAR AGREEMENT; AWARDING THE SALE OF THE CERTIFICATES; AND AUTHORIZING OTHER MATTERS RELATED TO THE ISSUANCE OF THE CERTIFICATES. . ___ C. D. Polumbo, Managing Partner McCall, Parkhurst & Horton L.L.P.