ORD 1984-41 - CO Iron WheelORDINANCE NO. 84 -41
AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY OF
HUNTSVILLE, TEXAS EQUIPMENT ACQUISITION CERTIFICATE OF
OBLIGATION IN THE AMOUNT OF $30,489.00; AND CONTAINING
OTHER PROVISIONS RELATED TO THE SUBJECT.
WHEREAS, the City Council of the City of Huntsville received competitive
bids for one rubber tire roller and awarded contracts for the purchase of
such equipment in accordance with Texas Revised Civil Statutes article
2368a.1 to Plains Machinery Co., in the amount of $30,489.00; 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 rubber tire roller at an amount not to exceed $40,000.00;
and
WHEREAS the notice of intention to issue Certificates of Obligation was
published at the times and in the manner required by Texas Revised Civil
Statutes article 2368a.1 on November 20, 1984, and November 27, 1984;
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 Plains Machinery
Co. to purchase said rubber tire roller 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
$30,489.00 for the purpose of acquiring said rubber tire roller 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 December 11, 1984, 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: December 11, 1984
Issued:
Amount: $30,489.00
Register No. 85 -2
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 THOUSAND FOUR HUNDRED EIGHTY -NINE AND NO /100 DOLLARS
($30,489.00) 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 unt f
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
1986
1987
1988
1989
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 11th day of December, 1984.
DATE OF INITIAL DELIVERY OF THIS CERTIFICATE:
William V. Nash, Mayor
ATTEST:
City Secretary
ASSIGNMENT AND TRANSFER
Full consideration therefor being hereby acknowledged,this Certificate
of Obligation was delivered to Plains Machinery Co., the original holder,
on this date, to -wit: , and by it hereby assigned and
transferred to
PLAINS MACHINERY CO.
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
3
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: That 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 preser-
vation of the public peace, property, health, and safety of the City
and its citizens, creates an emergency and an imperative public neces-
sity and this ordinance shall take effect and be in force from and
after its passage and approval, and it is so ordained.
4
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 11th day of December, 1984.
uth DeShaw, City Secretary
APPROVED AS TO FORM:
Scott B. nis, City A orney
5
CITY OF HUNTSVILLE, TEXAS
By
(........i.- _47- .<________.......,,
i
W lliam V. Nash, Mayor