ORD 1996-23 - CO - Authorizing Issuance - Rubber Tire Loader 12-17-1996ORDINANCE NO 96 -23
AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY
OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION
CERTIFICATE OF OBLIGATION FOR A NEW AND
UNUSED RUBBER TIRE LOADER IN THE AMOUNT OF
$86,300 (INCLUDING TRADE -IN); AND CONTAINING
OTHER PROVISIONS RELATED TO THE SUBJECT.
WHEREAS the City Council of the City of Huntsville received competitive bids for a new
and unused rubber tire loader, and awarded a contract for the purchase of
such equipment in accordance with Texas Local Government Code Chapter
271 to Carruth- Doggett, in the amount of $86,300 (including trade -in); and
WHEREAS the City published notice of intention to issue a Certificate of Obligation
payable from City ad valorem taxes for the purpose of evidencing the
indebtedness of the City for all or part of the purchase of the rubber tire
loader at an amount not to exceed $150,000; and
WHEREAS the notice of intention to issue a Certificate of Obligation was published at
the times and in the manner required by Texas Local Government Code
Chapter 271 on November 17 and 24,1996.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE, TEXAS; that:
Section 1: The City Council ratifies the contract with Carruth- Doggett to purchase the
rubber tire loader and hereby confirms the purchase of such equipment.
Section 2: An interest bearing Certificate of Obligation of the City of Huntsville, Texas,
to be known and designated as "City of Huntsville, Texas, Equipment
Acquisition Certificate of Obligation" is hereby authorized to be issued and
delivered in the principal amount of $86,300 for the purpose of acquiring the
rubber tire loader for use by the City, and the Mayor and City Secretary shall
have joint control of the certificate for the purpose of delivering same to the
owner in accordance herewith.
Section 3: The Certificate shall be dated December 17, 1996, shall mature and be
payable in four (4) equal installments (subject to the City's option of prior
payment), shall be registered as hereinafter set forth, and shall be in the
following basic form:
Dated: December 17,1996
Issued:
Amount: $86,300
Register No. 96--
UNITED STATES OF AMERICA
COUNTY OF WALKER
STATE OF TEXAS
CITY OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION
CERTIFICATE OF OBLIGATION
The City of Huntsville, a Municipal Corporation of the State of Texas, acknowledges
itself indebted to and FOR VALUE RECEIVED hereby promises to pay to the registered
owner hereof in installments and on the dates as below indicated the total sum of
Eighty Six Thousand Three Hundred and No/100 Dollars
($86,300) in lawful money of the United States of America, with interest thereon from date
of issue until paid at the rate of — per cent per annum, payable on
and annually thereafter on the day of of each and every year as hereinafter
provided until such sum is fully paid.
BOTH PRINCIPAL AND INTEREST on this Certificate of Obligation are hereby made
payable in Huntsville, Walker County, Texas, without exchange or collection charges to the
registered owner hereof, with such payments to be due on the dates and in the amounts
as follows:
DATE PRINCIPAL INTEREST TOTAL
1998 $
1999
2000
2001
The City reserves the right to prepay all or any part of this Certificate at any time prior
to the due date or maturity thereof without premium or penalty of any kind.
It is hereby certified and recited that all acts, conditions and things required to be done
precedent to and in the issuance of this Certificate of Obligation, to render the same lawful
and valid have been properly done, have happened and have been performed in regular
and due time, form and manner as required by law; that due and proper provision has
been made for the levy of a direct and continuing annual ad valorem tax against all taxable
property within the said City sufficient to pay the interest on this Certificate of Obligation
as due and to provide for the payment of each installment of principal as same matures;
that the City has received full value and consideration for this Certificate of Obligation and
that the total indebtedness of the City of Huntsville, including this Certificate of Obligation,
does not exceed any constitutional or statutory limitation.
This Certificate shall be registered as to principal and interest in the owner's name upon
books of the City to be kept for that purpose at the office of the Finance Director of the City,
the registrar, such registration to be noted hereon. After such registration, no transfer of
this Certificate shall be valid unless made on the City's books at the request of the
registered owner hereof, or his duly authorized agent, and similarly noted hereon.
IN TESTIMONY WHEREOF the City Council has caused the seal of said City to be
impressed hereon and this Certificate of Obligation to be signed by the Mayor and attested
to by the City Secretary, the date of this Certificate of Obligation being the — day of
,1996.
DATE OF INITIAL DELIVERY OF THIS CERTIFICATE:
William B. Green, Mayor
ATTEST:
Danna Welter, City Secretary
ASSIGNMENT AND TRANSFER
Full consideration therefor being hereby acknowledged, this Certificate of Obligation
was delivered to Carruth-Doggett, the original holder, on this the day of
1 199 and by it hereby assigned and transferred to
CARRUTH-DOGGETT
LIZ
CERTIFICATE OF REGISTRATION
IT IS HEREBY CERTIFIED that I have this day registered this Certificate as to principal
in the name of the holder as indicated in the registration blank below, on the books kept
by me for such purpose. The principal of and interest on this Certificate shall be payable
only to the registered holder named in the below registration blanks.
Signature
Name of Date of Finance Director
Registered Holder Registration (Registrar)
Section 4: While the Certificate of Obligation or installment thereof is outstanding and
unpaid, there shall be annually levied, assessed and collected in due time,
form and manner a tax upon all of the taxable property in the City sufficient
to pay the current interest thereon and to create sinking fund sufficient to
pay each installment of principal as same becomes due, or a sinking fund of
2%, whichever is greater; and in order to pay the interest on the Certificate
of Obligation for the first year and to create a sinking fund with which to pay
the principal as the same becomes due, or a sinking fund of 2%, whichever
is greater, there is hereby levied a sufficient tax on the taxable property in the
City for the current year, and the same shall be assessed and collected and
applied to the purposes named; and while the Certificate of Obligation is
outstanding and unpaid, a tax each year at a rate from year to year as will be
ample and sufficient to provide funds to pay the then current interest on the
Certificate of Obligation and to provide the necessary sinking fund, full
allowance being made for delinquencies and costs of collection, shall be and
is hereby levied for each year, respectively, and the tax shall each year be
assessed and collected and applied to the payment of the principal of and
interest on the Certificate of Obligation, to be kept separate and apart from
all other funds of the City. The City Council hereby declares and covenants
that it will provide and levy a tax legally and fully sufficient for the
Certificate of Obligation, it having been determined that the existing and
available taxing authority of the City for such purposes is adequate to permit
a legally sufficient tax in consideration of all other outstanding obligations.
Section 5: The Mayor and City Secretary are hereby empowered and directed to
proceed with the delivery of the Certificate of Obligation and the closing of
the acquisition at the earliest practicable date and are authorized to complete
the same in accordance with the terms hereof and to do all things necessary
or prerequisite thereto.
Section 6: The Certificate shall bear interest from the date of initial delivery shown on
the face of each Certificate at a rate per annum not in excess of that
prescribed by Article 717k-2, Texas Revised Civil Statutes, as amended, until
maturity, or upon prepayment. At the time the Certificate of Obligation is
issued the Certificate shall be registered and recorded by such register
number on the books of said City to the registered owner thereof.
Section 7: This ordinance shall take effect and be in force from and after its passage and
approval.
Section 8: Notwithstanding any other provision in the within ordinance to the contrary,
as to the authorized issuing date for the Certificate of Obligation, the
certificate shall be dated and bear interest from date of delivery and
execution by the Mayor and City Secretary.
PASSED AND APPROVED THIS 17TH DAY OF DECEMBER, 1996.
CITY OF HUNTSVILLE, TEXAS
William B. Green, Mayor
ATTEST:
`T�CJ
Danna Welter, City Secretary
APPROVED:
Scott Bounds, City Attorney