ORD 1988-01 - Sanitation (Equip. Acquisition CO. in the amount of $135, 272.00) 01-12-1988ORDINANCE NO 88-1
AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY OF
HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION CERTIFICATE OF
OBLIGATION IN THE AMOUNT OF $135,272,00; AND CONTAINING
OTHER PROVISIONS RELATED TO THE SUBJECT.
WHEREAS the City Council of the City of Huntsville received competitive bids
for one landfill compactor, and awarded contracts for the purchase of such
equipment in accordance with Texas Local Government Code Chapters 252 and 271
Mustang Tractor in the amount of $135,272.00; and
WHEREAS the City authorized the publication of a notice of intention to issue
Certificates 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
said landfill compactor at an amount not to exceed $135,272.00; and
WHEREAS the notice of intention to issue Certificates of Obligation was
published at the times and in the manner required by State Law on December 16,
1987 and December 23, 1987;
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 Mustang Tractor to
purchase said landfill compactor 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 $135,272.00 for the purpose of acquiring said
landfill compactor for use by the City, and the Mayor and City
Secretary shall have joint control of such certificate for the
purpose of delivering same to the owner in accordance herewith.
Section 3: The Certificate shall be dated January 12, 1988, 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, to-wit:
Dated: January 12, 1988 Amount: $135,272.00
Issued:
Register No. 88-
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
ONE HUNDRED THIRTY-FIVE THOUSAND TWO HUNDRED SEVENTY-TWO DOLLARS AND NO/100
($135,272.00) 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
1989
1990
1991
1992
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 said 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 12th day of January, 1987.
DATE OF INITIAL DELIVERY OF THIS CERTIFICATE:
CITY'OF HUNTSVILLLE, TEXAS
.i .1?
it
ATTEST:
City Secretary
ne Monday, Mayor
ASSIGNMENT AND TRANSFER
Full consideration therefor being hereby acknowledged, this Certificate
of Obligation was delivered to Mustang Tractor, the original holder, on this
date, to -wit: , and by it hereby assigned and transferred to
MUSTANG TRACTOR
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
Date of
Registration
Signature of
Finance Director
(Registrar)
Section 4: While said 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 said 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 said
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 each ONE HUNDRED DOLLARS
valuation of taxable property in said City for the current year
and the same shall be assessed and collected and applied to the
purposes named; and while said 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 said 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 said tax shall each year
be assessed and collected and applied to the payment of the
principal of and interest on said 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 such 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 said Certificate of Obligation and
the closing of said 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 said Certificate of Obligation is issued such
Certificate shall be registered and recorded by such register
number on the books of said City to the registered owner thereof.
Section 7: The public importance of this measure and the fact that it is to
the best interest of the City to acquire the equipment herein
contemplated at the earliest possible date, for the immediate
preservation of the public peace, property, health, and safety of
the City and its citizens, creates an emergency and an imperative
public necessity and this ordinance shall take effect and be in
force from and after its passage and approval, and it is so
ordained.
Section 8: Notwithstanding any other provision in the within ordinance to the
contrary, as to the authorized issuing date for such Certificate
of Obligation, such certificate shall be dated and bear interest
from date of delivery and execution by the Mayor and City
Secretary.
PASSED AND APPROVED this 12th day of January, 1988.
CITY OF HUNTSVILLE, TEXAS
By
JANE/ NDAY Mayor
APPROVED AS TO FORM:
.44 4I444. /
Scott nds, City Attorney