ORD 2004-05 - Refunding BondsORDINANCE NO. 2004- 0 5
ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF HUNTSVILLE, TEXAS
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2004;
LEVYING AN AD VALOREM TAX IN SUPPORT OF THE BONDS;
APPROVING A PAYING AGENT/REGISTRAR AGREEMENT, AN OFFICIAL
STATEMENT, A BOND PURCHASE AGREEMENT AND AN ESCROW
AGREEMENT; CALLING CERTAIN OBLIGATIONS FOR REDEMPTION; AND
AUTHORIZING OTHER MATTERS RELATING TO THE BONDS
THE STATE OF TEXAS §
COUNTY OF WALKER §
CITY OF HUNTSVILLE §
WHEREAS, the City has outstanding the following obligations:
Elkins Lake Municipal Utility District Wastewater and Sewer System Combination
Unlimited Tax and Revenue Bonds, Series 1973 (the "Series 1973 Bonds"),
City of Huntsville, Texas Street Improvement Bonds, Series 1991 (the "Series 1991
Bonds"),
Elkins Lake Municipal Utility District Unlimited Tax Refunding Bonds, Series 1993
(the "Series 1993 Bonds"),
City of Huntsville, Texas Combination Tax and Revenue Certificates of Obligation,
Series 1993 (the "Series 1993 Certificates"); and
WHEREAS, the City now desires to refund the Series 1973 Bonds maturing on March I in
the years 2005 and 2006 in the aggregate principal amount of $115,000, the Series 1991 Bonds
maturing on October I in the years 2005 through 2007 in the aggregate principal amount of
$1,150,000, the Series 1993 Bonds maturing on March I in the years 2005 through 2007 in the
aggregate principal amount of $480,000 and the Series 1993 Certificates maturing October I in the
years 2005 through 2008 in the aggregate principal amount of $390,000; (collectively, the "Refunded
Obligations"); and
WHEREAS, the City Council of the City deems it advisable and in the best interest of the
City to refund the Refunded Obligations in order to achieve a present value savings of $107,334.69
(5.027% of the principal amount of the Refunded Obligations) and a gross debt service savings of
$122,795.58 and the City further finds that the aggregate amount of payments under the refunding
bonds is less than the aggregate amount of payments under the Refunded Obligations by $96,075.21;
and
HUNTSVILLWORefg2004: Ordinance
WHEREAS, Chapter 1207, Texas Government Code, as amended ( "Chapter 1207 ")
authorizes the City to issue refunding bonds and to deposit the proceeds from the sale thereof
together with any other available funds or resources, directly with a place of payment (paying agent)
for the Refunded Obligations or with a trust company or commercial bank that does not act as
depository for the City, and such deposit, if made before such payment dates, shall constitute the
making of firm banking and financial arrangements for the discharge and final payment of the
Refunded Obligations; and
WHEREAS, Chapter 1207 further authorizes the City to enter into an escrow agreement
with a paying agent for the Refunded Obligations or with a trust company or commercial bank that
does not act as depository for the City with respect to the safekeeping, investment, reinvestment,
administration and disposition of any such deposit, upon such terms and conditions as the City and
such paying agent may agree, provided that such deposits may be invested and reinvested in
Defeasance Securities, as defined herein; and
WHEREAS, the Escrow Agreement hereinafter authorized, constitutes an agreement of the
kind authorized and permitted by said Chapter 1207; and
WHEREAS, all the Refunded Obligations mature or are subject to redemption prior to
maturity within 20 years of the date of the bonds hereinafter authorized; and
WHEREAS, the City deems it appropriate to call for redemption the following Refunded
Obligations:
REFUNDED OBLIGATIONS REDEMPTION DATE
Elkins Lake Municipal Utility District
Waterworks and Sewer System
Combination Unlimited Tax and
RevenueBonds, Series 1973 maturing
on October 1 in the years 2005 and
2006, inclusive September 1, 2004
City of Huntsville, Texas Street
Improvement Bonds, Series 1991
maturing October 1 in the years 2005
through 2007, inclusive October 1, 2004
Elkins Lake Municipal Utility District
Unlimited Tax Refunding Bonds,
Series 1993 maturing March 1 in the
years 2005 through 2007, inclusive June 1, 2004
HUNTSVILLE \GORefg2004: Ordinance 2'
REDEMPTION PRICE
Par
Par
Par
City offluntsville, Texas Combination
Tax and Revenue Certificates of
Obligation, Series 1993 maturing
October I in the years 2005 through
2008, inclusive October 1, 2004 Par
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.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
HUNTSVILLE, TEXAS:
Section 1. RECITALS, AMOUNT AND PURPOSE OF THE BONDS. 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 pursuant to Chapter 1207,
Texas Government Code to be issued and delivered in the aggregate principal amount of $2,220,000,
for the purpose of (i) refunding the Refunded Obligations as set forth in the preamble to this
Ordinance, in order to lower the overall debt service requirements of the City and (ii) paying the costs
of issuance of 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 REFUNDING BOND,
SERIES 2004" and initially there shall be issued, sold, and delivered hereunder fully registered
bonds, without interest coupons, dated March 15, 2004, 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 12 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 February 15 in each of the years and
in the principal amounts, respectively, as set forth in the following schedule:
YEARS
2005
2006
2007
2008
2009
APRINCH'AL MOUNTS
$365,000
655,000
620,000
495,000
85,000
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 well
HUNTSV1LLE\GORefg2004: Ordinance
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:
YEARS
RATES
2005
2.00%
2006
2.00
2007
2.00
2008
2.00
2009
2.25
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 Wells Fargo
Bank, N.A., 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 regula-
tions 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 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
HUNTS V ILL E \GORefg2004: Ordinance
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 City
Council 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 1201, Texas Government Code, as amended, and particularly
Subchapter D thereof, the duty of conversion and exchange of Bonds as aforesaid is hereby imposed
upon the Paying Agent/Registrar, and, upon the execution ofthe 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 (3 0) days thereaf-
ter, 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 execute the PAYING AGENT/REGISTRAR'S
AUTHENTICATION CERTIFICATE, in the form set forth in the FORM OF BOND.
(d) Substitute PaYng A eng� t/Re istrar. 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
HUNTS V ILLE \GORcfg2004: Ordinance
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 Bond initially issued as
provided in Section 4(h) shall be issued in the form of 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 (0 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 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
HUNTSV[LLE\GORefg2004: Or&ance 6
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 Blanket Issuer Letter of
Representations of the City to DTC.
(h) Initial Bond. The Bonds herein authorized shall be initially issued as fully registered
Bonds, being one Bond representing the entire principal amount of the Bonds payable in stated
installments and the initial Bond shall be registered in the names of the Underwriter or the designees
thereof as set forth in Section 12 hereof. The initial Bond shall be the Bond submitted to the Office
of the Attorney General of the State of Texas for approval, certified and registered by the Office of
the Comptroller of Public Accounts of the State of Texas and delivered to the Underwriter as set
forth in Section 12. Immediately after the delivery of the initial Bond, the Paying Agent/Registrar
shall cancel the initial Bond delivered hereunder and exchange therefor Bonds 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 DTC and except as provided in Section 4(0, all of the outstanding Bonds shall
be registered in the name of Cede & Co., as nominee of DTC.
(i) DTC Blanket Letter of Representations. The City confirms execution of Blanket Issuer
Letter of Representations with DTC establishing the Book - Entry-Only System which will be utilized
with respect to the Bonds.
HUNTSVILLE\GORefg2004: Ordinance 7
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, respec-
tively, 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.
NO. R-
INTEREST RATE
FORM OF BOND
UNITED STATES OF AMERICA
STATE OF TEXAS
WALKER COUNTY
CITY OF HUNTSVILLE, TEXAS
GENERAL OBLIGATION REFUNDING BOND
SERIES 2004
DATE OF BOND
March 15, 2004
REGISTERED OWNER:
PRINCIPAL AMOUNT:
MATURITY DATE
G9
PRINCIPAL
AMOUNT
CUSIP NO.
DOLLARS
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 March 15, 2004, on February 15, 2005 and semiannually
thereafter on each August 15 and February 15 to the maturity date specified above 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 later than the first
Record Date (hereinafter defined), such principal amount shall bear interest from the interest payment
date next preceding the date of authentication, unless such date of authentication is after any Record
Date 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
HUNTS VILMGORefg2004: Ordinance
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.
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 Wells Fargo Bank, N.A. (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 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 ofbusiness on the last business day next preceding the date of mailing
of such notice.
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;
HLINTSV1LLMGORefg2004: Ordinance
and payment on such date shall have the same force and effect as if made on the original date payment
was due.
THIS BOND is one of a series of Bonds dated March 15, 2004, authorized in accordance
with the Constitution and laws of the State of Texas in the principal amount of $2,220,000 FOR
THE PURPOSE OF: (I) REFUNDING CERTAIN OUTSTANDING OBLIGATIONS OF
THE CITY, AS MORE PARTICULARLY DESCRIBED IN THE ORDINANCE, IN ORDER
TO LOWER THE OVERALL DEBT SERVICE REQUIREMENTS OF THE CITY AND (H)
PAYING THE COSTS OF ISSUANCE OF THE BONDS.
THE BONDS ARE NOT subject to redemption prior to maturity.
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 ofthis 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 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.
HUNTSVILLE\G02efg2004: Ordinance 10
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.
IT IS FURTHER CERTIFIED that the City has designated the Bonds as "qualified tax -
exempt obligations" within the meaning of Section 265(b) of the Internal Revenue Code of 1986.
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 offi-
cial 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 ofthe Mayor 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
[CITY SEAL]
Mayor
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
EIMSVILLE \G0Refg2004: Ordirmce 11
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
LIM
WELLS FARGO BANK, N.A.
Paying Agent/Registrar
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 \G0Refg2004: Ordinance 12
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
Bond in every particular, with-
out 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 Bond has been examined, certified as to validity, and 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
The initial Bond shall be in the form set forth in this Section 5, 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 "), on February 15 in each of
the years, in the principal installments and bearing interest at the per annum rates set forth in the
following schedule:
HUNTSVILLB \G0Refg2004: Ordinance 13
Years Principal Amounts
Rates
(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 March 15, 2004 at the respective Interest Rate per
annum specified above. Interest is payable on February 15, 2005 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 later than
the first Record Date (hereinafter defined), such principal amount shall bear interest from the interest
payment date next preceding the date of authentication, unless such date of authentication is after any
Record Date 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 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 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 shall
be deposited in the Interest and Sinking Fund.
Section 7. ESTABLISHMENT OF ESCROW FUND. A portion of the proceeds of the
Bonds, together with any cash contribution, in an amount necessary to refund the Refunded
HUNTSVILLE\GORefg2004: Ordinance 14
Obligations shall be deposited in the Escrow Fund created and governed by the terms of the Escrow
Agreement dated March 15, 2004 attached hereto as Exhibit "A."
Section 8. 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 (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 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.
(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, 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 commercial
bank or trust company 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 Council.
(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 commercial bank or trust
HUNTSVILLENGOPefg2004: Ordinance 15
company 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.
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 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, and (iii) noncallable obligations of a state or an agency or a county, 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 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 no 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 (including
Interest Strips of the Resolution Funding Corporation).
Section 9. 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) ARlication for Replacement Bonds. Application f or 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
mutilated Bond) instead of issuing a replacement Bond, provided security or indemnity is furnished
as above provided in this Section.
HUNTSVILLMG0Pefg2464: Ordinance 16
(d) Charge for IssuinngReplacement 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 D of Texas
Government Code, Chapter 1241, this Section 9 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 10. 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
Bond 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 as provided by the insurer.
Section 11. 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 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 Ordinance or any underlying arrangement, directly or indirectly, secure or
HLTNMV1LWG4Refg2W4: Ordinance 17
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 14 1 (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 until
such proceeds are needed for the purpose for which the bonds are issued,
(B) amounts invested in a bona fide debt service fund, within the meaning of
section 1.148 -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) and, to the extent
applicable, section 149(d) of the Code (relating to advance refundings); and
(8) 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
HWMVILLMGORefg2004: Ordinance 18
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 (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
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 Obligations 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 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.
(d) Disposition. The City covenants that the property financed with the Refunded
Obligations will not be sold or otherwise disposed 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 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.
(e) Designation as Qualified Tax - Exempt Obligations. The City hereby designates the Bonds
as "qualified tax - exempt obligations" as defined in section 265(b)(3) of the Code, conditioned upon
the purchaser identified in Section 12 hereof certifying that the aggregate initial offering price of the
Bonds to the public (excluding any accrued interest) is no greater than $10 million. Assuming such
condition is met, in furtherance of such designation, the City represents, covenants and warrants the
HUNTSVILLSGOPefg2404: Ordinance 19
following: (a) that during the calendar year in which the Bonds are issued, the City (including any
subordinate entities) has not designated nor will designate bonds, which when aggregated with the
Bonds will result in more than $10,400,000 of "qualified tax - exempt obligations" being issued; (b)
that the City reasonably anticipates that the amount of tax - exempt obligations issued, during the
calendar year in which the Bonds are issued, by the City (or any subordinate entities) will not exceed
$10,000,000; and (c) that the City will take such action or refrain from such action as necessary, and
as more particularly set forth in Section 11 hereof, in order that the Bonds will not be considered
"private activity bonds" within the meaning of section 141 of the Code.
Section 12. SALE OF BONDS, The Bonds are hereby sold and shall be delivered to
Coastal Securities (the "Underwriter ") in accordance with the terms and provisions of a Bond
Purchase Agreement in substantially the form presented to the City Council at the meeting to consider
this Ordinance which the Mayor and Mayor Pro -Tem of the City are hereby authorized to execute
and deliver and which the City Secretary of the City is hereby authorized to attest. The City will
initially deliver to the Underwriter the Bonds authorized under this Ordinance. The Bonds shall
initially be registered in the name of Coastal Securities.
Section 13. APPROVAL OF OFFICIAL STATEMENT. The City hereby approves the
form and content of the 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 Underwriter 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 March 15,
2044 prior to the date hereof is confirmed, approved and ratified. The City Council hereby finds and
determines that the Preliminary Official Statement and final Official Statement were "deemed final"
(as that term is defined in 17 CFR Section 240.15c(2) -12) as of their respective dates.
Section 14. APPROVAL OF ESCROW AGREEMENT, TRANSFER OF FUNDS. The
Mayor of the City is hereby authorized and directed to execute and deliver and the City Secretary of
the City is hereby authorized and directed to attest an Escrow Agreement in substantially the form
attached hereto as Exhibit "A". In addition, the Mayor and City Manager are each hereby authorized
to execute such subscriptions or other documentation for the purchase of United States Treasury
Securities, and to authorize the transfer of such funds ofthe City, as may be necessary for the Escrow
Fund.
Section 15. APPROVAL OF PAYING AGENT/REGISTRARAGREEMENT. Attached
hereto as Exhibit "B" is a substantially final form of Paying Agent/Registrar Agreement. The Mayor
is hereby authorized to amend, complete or modify such agreement as necessary and is further
authorized to execute such agreement and the City Secretary is hereby authorized to attest such
agreement.
Section 16. NOTICE OF REDEMPTION. Attached to this Ordinance, as Exhibit "C" and
made a part hereof for all purposes, are copies of notices of deposit and redemption for the Refunded
HUNTSVILLE \G0Refg2004: Ordirwee 20
Obligations in substantially final form and such Refunded Obligations described in said notices of
redemption are hereby called for redemption and shall be redeemed prior to maturity on the dates,
places, and at the prices set forth therein. The Mayor and City Manager are each hereby authorized
to amend, complete or modify such notices as necessary to call such Refunded Obligations for
redemption.
Section 17. NOTICE TO PAYING AGENT. The Refunded Obligations described in
Exhibit "C " attached hereto are so called for redemption, and the respective paying agents for the
Refunded Obligations are hereby directed to make appropriate arrangements so that such Refunded
Bonds may be redeemed on the respective redemption dates. A copy of such notice of redemption
shall be delivered to the respective paying agents so mentioned in the notices.
Section 18. CONTINUING DISCLOSURE UNDERTAKING. (a) Annual Reports. The
City shall provide annually to each NRMSIR and any SID, within six months after the end of each
fiscal year, financial information and operating data with respect to the City of the general type
included in the final Official Statement authorized by Section 13 of this Ordinance, being the
information described in Exhibit "D" hereto. Any financial statements so to be provided shall be (1)
prepared in accordance with the accounting principles described in Exhibit "D" 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 each
NRMSIR and any SID, when and if the audit report on such statements become available.
If the City changes its fiscal year, it will notify each NRMSIR and any SID 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
(including an official statement or other offering document, if it is available from the MSRB) that
theretofore has been provided to each NRMSIR and any SID or filed with the SEC.
(b) Material Event Notices. The City shall notify any SID and either each NRMSIR or
the MSRB, in a timely manner, of any of the following events with respect to the Bonds, if such event
is material within the meaning of the federal securities laws:
A. Principal and interest payment delinquencies;
B. Non - payment related defaults;
C. Unscheduled draws on debt service reserves reflecting financial difficulties;
MMV1LLE \GORefg2004: Ordinance 21
D. Unscheduled draws on credit enhancements reflecting financial difficulties;
E. Substitution of credit or liquidity providers, or their failure to perform;
F. Adverse tax opinions or events affecting the tax - exempt status of the Bonds;
G. Modifications to rights of holders of the Bonds;
H. Bond calls;
I. Defeasances;
Release, substitution, or sale ofproperty securing repayment ofthe Bonds; and
K. Rating changes.
The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of
any failure by the City to provide financial information or operating data in accordance with Section
18(a) of this Ordinance by the time required by such Section.
(c) 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 8 that causes
the Bonds no longer to be 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 does not make any
representation or warranty concerning such information or its usefulness to a decision to invest in or
sell Bonds at any future date.
UNDERNO 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 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.
HLNTSV1LLE=Refg2004: Ordinance 22
No default by the City in observing or performing its obligations under this Section shall
comprise a breach of or default under the 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 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 Bonds
consents 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 interest of
the holders and beneficial owners of the Bonds. 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 Section 18(a) 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 Bonds in the primary offering
of the Bonds.
(d) Definitions. As used in this Section, the following terms have the meanings ascribed
to such terms below:
"MSRB" means the Municipal Securities Rulemaking Board.
"NRMSIR" means each person whom the SEC or its staff has determined to be a
nationally recognized municipal securities information repository within the meaning ofthe Rule from
time to time.
"Rule" means SEC Rule 15c2 -12, as amended from time to time.
"SEC" means the United States Securities and Exchange Commission.
"SID" means any person designated by the State of Texas or an authorized
department, officer, or agency thereof as, and determined by the SEC or its staff to be, a state
information depository within the meaning of the Rule from time to time.
HUNTSV1LLE\GORetg2004: Ordinance 23
Section 19. AMENDMENT OF ORDINANCE. The City hereby reserves the right to
amend this Ordinance subject to the following terms and conditions, to -wit:
(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, or (v) 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% ofthe holders in aggregate principal amount of the then outstanding Bonds, nothing
herein contained shall permit or be construed to permit amendment ofthe 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 ofthe 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.
HUNTSV1LLE\G0Refg2004: Ordinance 24
(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 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 20. REMEDIES IN EVENT OF DEFAULT. In addition to all the rights and
remedies provided by the laws of the State of Texas, it is specifically covenanted and agreed
particularly that in the event the City (i) defaults in the payment of the principal, premium, if any, or
interest on the Bonds, (ii) declares bankruptcy, or (iii) defaults in the observance or performance of
any other of the covenant, agreement or obligation of the City, the failure to perform which materially
adversely affects the rights of the owners, including but no limited to, their prospect or ability to be
repaid in accordance with this Section and the continuation thereof for a period of 60 days after
notice of such default is given by any owner to the City, the following remedies shall be available:
(a) Any owner or an authorized representative thereof, including but not limited to, a trustee
or trustees therefor, may proceed against the City for the purpose of protecting and enforcing the
rights to the 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 owners hereunder or any combination
of such remedies.
(b) It is provided that all such proceedings shall be instituted and maintained for the equal
benefit of all owners of the Bonds then outstanding.
(c) The bond insurer, if any, shall be deemed to be the sole holder of the Bonds for the
purpose of exercising any voting right or privilege or giving any consent or direction or taking any
other action that the owners of the Bonds are entitled to take.
HUNTSV1LLE \G0Refg2004: Ordinance 25
(d) 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.
The exercise of any remedy herein conferred or reserved shall not be deemed a waiver of any other
available remedy.
Section 21. 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 22. 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 ofthe Bonds, the Paying Agent/Registrar Agreement, the Escrow Agreement, the Bond
Purchase Agreement and the Official Statement. In addition, prior to the initial delivery of the Bonds,
the Mayor, 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
insurance on the Bonds or the approval of the Bonds by the Texas Attorney General's office.
In case any officer ofthe 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 23. 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 ofthe articles and sections ofthis Ordinance have been inserted for convenience ofreference
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.
Section 24. 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.
HUNTSVILLE \GORefg2004: Ordinance 26
Section 25. 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 26. 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 27. FUNDS AND ACCOUNTS. Notwithstanding anything in this Ordinance to
the contrary any funds or accounts created by this Ordinance, other than the Escrow Fund, may be
subaccounts of the City's Funds held by the City's depository, and, as such, not held in separate bank
accounts, such treatment shall not constitute commingling of the monies in such funds or of funds and
the City shall keep full and complete records indicating the monies and investment credited to each
such fund.
Section 28. REPEALER. All orders, resolutions and ordinances, or parts thereof,
inconsistent herewith are hereby repealed to the extent of such inconsistency.
Section 29. EFFECTIVE DATE. This Ordinance shall become effective upon the final
passage of this Ordinance.
Section 30. 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.
HUNTSVILLMGORefg2004: Ordinance 27
IN ACCORDANCE WITH SECTION 1201.028, TEXAS GOVERNMENT CODE
passed and approved on First and Final Reading on the 23rd day of March, 2004.
K May r
City of Huntsville, Texas
ATTEST:
Dakna Welter
City Secretary
APPROVED AS TO FORM:
-I&W 4 Ae-
Thomas Leeper, Att mey
HUNTSVILLE \GORefg2004: Ordinance OrdinanceSigPage
EXHIBIT A
ESCROW AGREEMENT
HLNTSViLLE \OORefg2004: Ordinance A -1
EXHIBIT B
PAYING AGENUREGISTRAR AGREEMENT
HUNfSVILLE \GORefg2004: Ordinance B -1
1 *3 1 11063194
ELKINS LAKE MUNICIPAL UTILITY DISTRICT WATERWORKS AND SEWER
SYSTEM COMBINATION UNLIMITED TAX AND REVENUE BONDS,
SERIES 1973
NOTICE IS HEREBY GIVEN that Huntsville, Texas ( "City ") has placed funds and/or
investments on deposit and has called for redemption the above - captioned obligations of the City
maturing on the dates set forth below (the "Obligations "):
Maturity
Redemption
Principal
Interest
CUSIP
March 1
Date
Amount
Rate
Number*
2005
September 1, 2004
$55,000
6.70%
287798 BC 5
2006
September 1, 2004
60,000
6.70
287798 BD 3
The redemption price for the above Obligations is par plus accrued interest to September 1,
2004, the date fixed for redemption. Such Obligations shall be redeemed and shall no longer bear
interest after September 1, 2004. The redemption price for such Obligations shall be paid upon
presentation to JPMorgan Chase Bank, the Paying Agent, at its principal payment office in Dallas,
Texas.
First ClasslRe nsteredlCertified Mail
JP Morgan Chase Bank
Institutional Trust Services
P.O. Box 2320
Dallas, Texas 75221 -2320
By Overnight or Courier
JPMorgan Chase Bank
Institutional Trust Services
2001 Bryan Street, 91 Floor
Dallas, Texas 75201
BV Hand
JPMorgan Chase Bank
Room 234 -North Building
ITS Window
55 Water Street
New York, NY 10041
Withholding of 30% of gross redemption proceeds of any payment made within the United States may be required by
the Interest and Dividend Tax Compliance Act of 1983 unless the Paying Agent has the correct taxpayer identification
number (social security or employer identification number) or exemption certificate of the payee. Please furnish a
properly completed Form W -9 or exemption certificate or equivalent when presenting your securities.
"The CUSIP Numbers have been assigned to this issue by the CUSIP Service Bureau and are included solely for the convenience of the owners of the Obligations. The City shall not be responsible
for the selection or the correctness of the CUSIP numbers set forth herein.
CITY OF HUNTSVILLE, TEXAS
HUNTSVILMG0Refg2004: Ordinance C —I
NOTICE OF DEPOSIUREDEMPTION
CITY OF HUNTSVILLE, TEXAS
STREET IMPROVEMENT BONDS,
SERIES 1991
NOTICE IS HEREBY GIVEN that Huntsville, Texas ( "City ") has placed funds and/or
investments on deposit and has called for redemption the above - captioned obligations of the City
maturing on the dates set forth below (the "Obligations "):
Maturity
Redemption
Principal
Interest
CUSIP
October 1
Date
Amount
Rate
Number*
2005
October 1, 2004
$350,000
6.50%
447258 FR 0
2006
October 1, 2004
400,000
6.50
447258 FS 8
2007
October 1, 2004
400,000
6.50
447258 FT 6
The redemption price for the above Obligations is par plus accrued interest to October 1,
2004, the date fixed for redemption. Such Obligations shall be redeemed and shall no longer bear
interest after October 1, 2004. The redemption price for such Obligations shall be paid upon
presentation to First National Bank, the Paying Agent, at its principal payment office in Huntsville,
Texas.
First Class/Registered/Certirled Mail By Overnight or Courier By Hand
First National Bank First National Bank First National Bank
P. O. Box 659 1300 11'h Street 1300 l lth Street
Huntsville, Texas 77342 -0659 Huntsville, Texas 77340 Huntsville, Texas 77340
Attention: Trust Department Attention: Trust Department Attention: Trust Department
Withholding of 30% of gross redemption proceeds of any payment made within the United States may be required by
the Interest and Dividend Tax Compliance Act of 1983 unless the Paying Agent has the correct taxpayer identification
number (social security or employer identification number) or exemption certificate of the payee. Please furnish a
properly completed Form W -9 or exemption certificate or equivalent when presenting your securities.
*The CUSIP Numbers have been assigned to this issue by the CUSIP Service Bureau and are included solely for the convenience ofthe owners ofthe Obligations. The City shall not be responsible
for the selection or the correctness ofthe CUSIP numbers set forth herein
CITY OF HUNTSVILLE, TEXAS
HUNTSVILLMOReW004: Ordinance C-2
NOTICE OF DEPOSIT/REDEMPTION
ELKINS LAKE MUNICIPAL UTILITY DISTRICT
UNLIMITED TAX REFUNDING BONDS,
SERIES 1993
NOTICE IS HEREBY GIVEN that Huntsville, Texas ( "City ") has placed funds and/or
investments on deposit and has called for redemption the above - captioned obligations of the City
maturing on the dates set forth below (the "Obligations "):
Maturity
Redemption
Principal
Interest
CUSIP
March 1
Date
Amount
Rate
Number*
2005
June 1, 2004
$265,000
6.00%
287798 CV 2
2006
June 1, 2004
110,000
6,00
287798 CW 0
2007
June 1, 2004
105,000
6.00
287798 CX 8
The redemption price for the above Obligations is par plus accrued interest to June 1, 2004,
the date fixed for redemption. Such Obligations shall be redeemed and shall no longer bear interest
after June 1, 2004. The redemption price for such Obligations shall be paid upon presentation to
JPMorgan Chase Bank, the Paying Agent, at its principal payment office in Dallas, Texas.
First Class/Registered/Certifed Mail
JP Morgan Chase Bank
Institutional Trust Services
P.O. Box 2320
Dallas, Texas 75221 -2320
By Overnight or Courier
JPMorgan Chase Bank
Institutional Trust Services
2001 Bryan Street, 9`h Floor
Dallas, Texas 75201
By Hand
JPMorgan Chase Bank
Room 234 -North Building
ITS Window
55 Water Street
New York, NY 10041
Withholding of 30% of gross redemption proceeds of any payment made within the United States may be required by
the Interest and Dividend Tax Compliance Act of 1983 unless the Paying Agent has the correct taxpayer identification
number (social security or employer identification number) or exemption certificate of the payee. Please furnish a
properly completed Form W -9 or exemption certificate or equivalent when presenting your securities.
"The CUSIP Numbers have been assigned to this issue by the CUSIP Service Bureau and are included solely for the convenience of the owners of the Obligations. The City shall not be responsible
for the selection or the correctness of the CUSIP numbers set forth herein.
CITY OF HUNTSVILLE, TEXAS
HUNTSVILLMORefg2004: Ordinance C-3
NOTICE OF DEPOSIT/REDEMPTION
CITY OF HUNTSVILLE, TEXAS
COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION,
SERIES 1993
NOTICE IS HEREBY GIVEN that Huntsville, Texas ("City") has placed funds and/or
investments on deposit and has called for redemption the above-captioned obligations of the City
maturing on the dates set forth below (the "Obligations"):
Maturity
Redemption
Principal
Interest
CUSIP
October I
Date
Amount
Rate
Number*
2005
October 1, 2004
$ 90,000
5.25%
447258 GF 5
2006
October 1, 2004
95,000
5.40
447258 GG 3
2007
October 1, 2004
100,000
5.50
447258 GH 1
2008
October 1, 2004
105,000
5.60
447258 GJ 7
The redemption price for the above Obligations is par value plus accrued interest to October
1, 2004, the date fixed for redemption. Such Obligations shall be redeemed and shall no longer bear
interest after October 1, 2004. The redemption price for such Obligations shall be paid upon
presentation to JPMorgan Chase Bank, the Paying Agent, at its principal payment office in Dallas,
Texas.
Mist ClasslRegigeredlCelWfled Mail
JP Morgan Chase Bank
Institutional Trust Services
P.O. Box 2320
Dallas, Texas 75221-2320
By Overnikht or Courier
JPMorgan Chase Bank
Institutional Trust Services
2001 Bryan Street, 9' Floor
Dallas, Texas 75201
By Hand
JPMorgan Chase Bank
Room 234-North Building
ITS Window
55 Water Street
New York, NY 10041
Withholding of 30% of gross redemption proceeds of any payment made within the United States may be required by
the Interest and Dividend Tax Compliance Act of 1983 unless the Paying Agent has the correct taxpayer identification
number (social security or employer identification number) or exemption certificate of the payee. Please furnish a
properly completed Form W-9 or exemption certificate or equivalent when presenting your securities.
*The CUSIP Numbers have been asWedto this issue by the CUSIP Service Bureau and are included solely for the convenience of the owners ofthe Obligations. The City shall not be responsible
for the selection or the correctness of the CUSIP numbers set forth herein.
CITY OF HUNTSVILLE, TEXAS
HU=VlLLE\G0Ref;20D4: Ordinance C-4
EXHIBIT D
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 18 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. The City's audited financial statements for the most recently concluded fiscal year or
to the extent these audited financial statements are not available, the portions of the unaudited
financial statements of the City appended to the Official Statement as Appendix B, but for the
most recently concluded fiscal year.
2. Tables 1 through 6 and 8 through 15.
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 paragraph 1 above.
HLNnVILLE \G0Refg2004: Ordinance D -1
CERTIFICATE FOR ORDINANCE NO. NO. 2004 -D S
THE STATE OF TEXAS §
COUNTY OF WALKER §
CITY OF HUNTSVILLE §
We, the undersigned officers and members of the City of Huntsville, Texas (the "City "),
hereby certify as follows:
1. The City Council of the City convened in a REGULAR MEETING ON THE 23RD
DAY OF MARCH, 2004, at the City Council Chambers, Huntsville City Hall (the "Meeting "), and
the roll was called of the duly constituted officers and members of the City, to -wit:
Karl Davidson - Mayor
Vance Howard - Mayor Pro -Tern, Position 3 at Large
Jim Willet - Ward 1
Mac Woodward - Ward 2
Gary Crawford - Ward 3
Bob Tavenner - Ward 4
Steed Smith - Position 1 at Large
Judy Kayse - Position 2 at Large
Jack Choate - Position 4 at Large
Danna Welter - City Secretary
and all of the persons were present, except the following absentees: N/A , thus
constituting a quorum. Whereupon, among other business, the following was transacted at the
Meeting: a written
ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF HUNTSVILLE, TEXAS
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2004;
LEVYING AN AD VALOREM TAX IN SUPPORT OF THE BONDS;
APPROVING A PAYING AGENT/REGISTRAR AGREEMENT, AN OFFICIAL
STATEMENT, A BOND PURCHASE AGREEMENT AND AN ESCROW
AGREEMENT; CALLING CERTAIN OBLIGATIONS FOR REDEMPTION; AND
AUTHORIZING OTHER MATTERS RELATING TO THE BONDS
was duly introduced for the consideration ofthe City Council. It was then duly moved and seconded
that the Ordinance be passed; and, after due discussion, said motion carrying with it the passage of
the Ordinance, prevailed and carried by the following vote:
AYES: _ 9
NOES: _ 0
HUNfBVIId.CCat1Rd82004: C r&i eCat
2. A true, full and correct copy of the Ordinance passed at the Meeting described in the
above and foregoing paragraph is attached to and follows this Certificate; that the Ordinance has been
duly recorded in the City Council's minutes of the Meeting; that the above and foregoing paragraph
is a true, full and correct excerpt from the City Council's minutes of the Meeting pertaining to the
passage of the Ordinance; that the persons named in the above and foregoing paragraph are the duly
chosen, qualified and acting city officials as indicated therein; that each of the elected officials and
members of the City Council was duly and sufficiently notified officially and personally, in advance,
of the time, place and purpose of the Meeting, and that the Ordinance would be introduced and
considered for passage at the Meeting, and each of the elected officials and members consented, in
advance, to the holding of the Meeting for such purpose, and that the Meeting 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, Government Code, as amended.
HUNfgVHI EWRdg2DD4: OrdinmceCM
SIGNED AND SEALED the
j .•.►
City Secretary
HUNTSVILLE/CO2004: ORDERCERT
Mayor