ORD 1993-14 - C.O. - Authorize Issuance - Road Repair Unit 04-20-1993ORDINANCE NO 93 -14
AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY OF
HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION
CERTIFICATE OF OBLIGATION FOR A ROAD REPAIR
UNIT IN THE AMOUNT OF $15,609; AND CONTAINING
OTHER PROVISIONS RELATED TO THE SUBJECT.
WHEREAS the City Council of the City of Huntsville received competitive bids for a road
repair unit, and awarded a contract for the purchase of such equipment in
accordance with Texas Local Government Code Chapter 271 to Texas High
Roller, in the amount of $15,609; 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 road repair unit
at an amount not to exceed $20,000; 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 March 26 and April 2, 1993.
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 Texas High Roller to purchase the
road repair unit 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 $15,609 for the purpose of acquiring the
road repair unit 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 April 20, 1993, 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: April 20, 1993 Amount: $15,609
Issued:
Register No. 93 -03
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
Fifteen Thousand Six Hundred Nine And No /100 Dollars
($15,609) 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
1994 $ $ $
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
, 1993.
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 Texas High Roller, the original holder, on this the day of
, 1993, and by it hereby assigned and transferred to
TEXAS HIGH ROLLER
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 of
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 20th day of April, 1993.
CITY OF HUNTSVILLE, TEXAS
. H. Hodges, Mayor
ATTEST:
Danna Welter, City Secretary
APPR
Scot' Boun e s, City Attorney