ORD 1994-10 - Claim - Delivery CO - Street Sweeper 02-08-1994c•
(ey.# -. 4 ()I) 1.
ORDINANCE NO. 94 -10
AN ORDINANCE APPROVING CLAIM AND DELIVERY OF
CERTIFICATES OF OBLIGATION FOR ONE (1) SELF PROPELLED
STREET SWEEPER; AND CONTAINING OTHER PROVISIONS
RELATED HERETO.
WHEREAS the City Council of the City of Huntsville, Texas (City), by Ordinance No. 93-
33, found that it was advisable for the City to purchase a self propelled street
sweeper and that Certificates of Obligation be issued by the City for all or any
part of the cost of same; and
WHEREAS
WHEREAS
WHEREAS
the notice for the action to issue Certificates of Obligation was published at the
times and in the manner required by law; and
the City awarded a contract to R. B. Everett in the amount of $22,800 as the
lowest and best bid for the purchase of the self propelled street sweeper; and
the City Council wishes to authorize payment thereof and delivery of a Certificate
of Obligation.
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE, TEXAS, that:
SECTION 1:
SECTION 2:
SECTION 3:
SECTION 4:
There is now due and owing to R. B. Everett the sum of $22,800.
The Certificate of Obligation herein authorized to be delivered shall bear interest
at the rate of 6.0% per annum from date of initial delivery shown on the face of
such certificate.
There shall be executed and delivered to R. B. Everett a City of Huntsville,
Texas, Equipment Acquisition Certificate of Obligation, dated February 9, 1994.
The Mayor, City Secretary and other appropriate City officials are hereby
authorized and directed to deliver the Certificate and to do any and all things
necessary or convenient to carry out the terms of this ordinance.
INTRODUCED, READ AND PASSED by the unanimous vote of the City Council of the City
of Huntsville, on this the 8th day of February, 1994.
CITY OF HUNTSVILLE, TEXAS
ATTEST:
anna Welter, City Secretary
APPROVED AS TO FORM:
Scott B unds, City Attomey
. H. Hodges, ayor
City of Huntsvi e
" TO BUILD AND SERVE A BETTER COMMUNITY "
HUNTSVILLE, TEXAS 77340
1212 AVE. M
(409) 295-6471
February 23, 1994
Mrs. Doris Niederhofer
P. O. Box 1195
Huntsville, Texas 77340
RE: Certificate of Obligation issued by
the City of Huntsville in the amount
of $22,800
Dear Mrs. Niederhofer:
This is to certify that I have examined an Equipment Acquisition Certificate of Obligation to be
issued by the City of Huntsville, Texas, in the amount of $22,800, bearing interest at a rate
therein specified and payable as provided in the Certificate.
This Certificate of Obligation is issued pursuant to the terms of Texas Local Government Code,
Chapter 271, and is for the purpose of financing the acquisition of a self propelled street sweeper
(road broom). This Certificate was authorized by ordinance dated February 8, 1994, which
ordinance provides for the levying of a continuing direct annual ad valorem tax on all taxable
property within the limits of the City of Huntsville, Texas, to pay the interest on such Certificate
of Obligation and to create a sinking fund for redemption of the principal amount. The
Ordinance also provides for the assessment and collection of such taxes and these provisions meet
the requirements of the Statute and Article XI, Sections 5 and 7 of the Constitution of the State
of Texas.
At the time advertisement for bids was made concerning the equipment to be purchased, a
provision was made indicating that the successful bidder needed to elect if the successful bidder
would accept the Certificate of Obligation or endorse same over in accordance with arrangements
made by the City of Huntsville, Texas. In this connection, the successful bidder elected to
endorse these obligations to Doris Niederhofer.
February 23, 1994
Page 2
Based upon the above, it is my opinion that this Certificate of Obligation is a legal, valid and
binding obligation of the City of Huntsville, Texas, and the interest and principal due thereon is
payable in accordance with the Certificate of Obligation from the budgeted funds of the City of
Huntsville. The City's issuance, execution and delivery of the Certificate is not subject to any
authorization, consent or review of any government body, public officers or regulatory authority
not heretofore obtained. The interest on the Certificate of Obligation is (1) excludable from gross
income for federal income tax purposes under Section 103(a) of the Internal Revenue Code of
1986, as amended, and existing regulations, rulings, and court decisions, and (2) does not
constitute an individual or corporate altemative minimum tax preference item. Interest paid on
tax-exempt obligations may, however, affect the alternative minimum taxable income of certain
corporations. The accrual or receipt of such interest could therefore affect the federal income tax
liability of the recipient, depending upon the recipient's particular tax status and other factors.
Respectfully submitted,
1.W
Scott Bounds
City Attorney
SB/dlw
Dated: January 18, 1994
Issued: February 9, 1994
Amount: $22,800
Register No. 94-02
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
Twenty Two Thousand Eight Hundred And No /100 Dollars
($22,800) in lawful money of the United States of America, with interest thereon from date
of issue until paid at the rate of 6.0% per cent per annum, payable on February 9, 1995, and
annually thereafter on the 9th day of February 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 $ 5,700.00 $1,368.00 $ 7,068.00
1996 5,700.00 1,026.00 6,726.00
1997 5,700.00 684.00 6,384.00
1998 5.700.00 342.00 6,042.00
$22,800.00 $ 3,420.00 $26,220.00
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 9th day of February,
1994.
DATE OF INITIAL DELIVERY OF THIS CERTIFICATE: „la.- /
ATTEST:
/996L
ASSIGNMENT AND TRANSFER
W. H. Hodges, May
Full consideration therefor being hereby acknowledged, this Certificate of Obligation was
delivered to R. B. Everett, the original holder, on this the day of
if r , 1994, and by it hereby assigned and transferred to Doris
Niederhofer.
R. B. EVERETT
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)
Doris Niederhofer 2 -09-94