ORD 1994-19 - Authorize Issuance CO - 60" Flail Mower 07-26-1994ORDINANCE NO 94 -19
AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY
OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION
CERTIFICATE OF OBLIGATION FOR A NEW AND
UNUSED 60" FLAIL MOWER IN THE AMOUNT OF
$11,480; 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 60" flail mower, and awarded a contract for the purchase of such
equipment in accordance with Texas Local Government Code Chapter 271 to
Watson Distribution (Houston), in the amount of $11,480; 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 60" flail mower at an amount not to
exceed $14,500; 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 June 15 and 22, 1994.
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 Watson Distributors (Houston) to
purchase the 60" flail mower 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 $11,480 for the purpose of acquiring the 60" flail mower 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 July 27, 1994, 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: July 27, 1994 Amount: $11,480
Issued: Register No. 94 -_
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
Eleven Thousand Four Hundred Eighty and No /100 Dollars
($11,480) 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
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 Watson Distribution (Houston), the original holder, on this the day of
, 1994, and by it hereby assigned and transferred to
WATSON DISTRIBUTION (HOUSTON)
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: 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:
Section 6:
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 26TH DAY OF JULY, 1994.
CITY OF HUNTSVILLE, TEXAS
Id/
W. H. Hodges, Mayor
ATTEST:
Danny Welter, City Secretary