ORD 1994-05 - CO - Authorize Issuance - Cab & Chassis 01-18-1994ORDINANCE NO 94 -05
AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY
OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION
CERTIFICATE OF OBLIGATION FOR A CAB AND
CHASSIS FOR THE ASPHALT DISTRIBUTOR IN THE
AMOUNT OF $31,722; AND CONTAINING OTHER
PROVISIONS RELATED TO THE SUBJECT.
WHEREAS the City Council of the City of Huntsville received competitive bids for a cab and
chassis for the asphalt distributor, and awarded a contract for the purchase of such
equipment in accordance with Texas Local Government Code Chapter 271 to
Moore -Henry Motors, in the amount of $31,722; 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 cab and chassis for the asphalt
distributor at an amount not to exceed $35,000; 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 December 3 and 10, 1993.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE, TEXAS; that:
Section 1:
Section 2:
Section 3:
The City Council ratifies the contract with Moore -Henry Motors to purchase the
cab and chassis for the asphalt distributor and hereby confirms the purchase of
such equipment.
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 $31,722 for the purpose of acquiring the cab and chassis for
the asphalt distributor 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.
The Certificate shall be dated January 18, 1994, shall mature and be payable in
five (5) 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: January 18, 1994 Amount: $31,722
Issued: Register No. 94 -01
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
Thirty One Thousand Seven Hundred Twenty -Two And No /100 Dollars
($31,722) 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
1995 $ $ $
1996
1997
1998
1999
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
1994.
DATE OF INITIAL DELIVERY OF THIS CERTIFICATE:
W. H. Hodges, Mayor
ATTEST:
Danna Welter, City Secretary
ASSIGNMENT AND TRANSFER
Full consideration therefor being hereby acknowledged, this Certificate of Obligation was
delivered to Moore -Henry Motors, the original holder, on this the day of
, 1994, and by it hereby assigned and transferred to
MOORE -HENRY MOTORS
By
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.
Name of
Registered Holder
Signature
Date of Finance Director
Registration (Registrar)
Section 4:
Section 5:
Section 6:
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.
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.
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 18TH DAY OF JANUARY, 1994.
CITY OF HUNTSVILLE, TEXAS
W. H. Hodges, Mayor
ATTEST:
Danna Welter, City Secretary
APPR • VED:
Scott Bounds, City Attorney