ORD 1982-38 - CO Tractor-BackhoeORDINANCE NU. 82-38
AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY OF HUNTSVILLE,
TEXAS, EQUIPMENT ACQUISITION CERTIFICATE OF OBLIGATION IN THE
AMOUNT OF $57,785^00; AND CONTAINING OTHER PROVISIONS RELATED
TO THE SUBJECT.
WHEREAS, the City Council of the City of Huntsville received competitive
bids for a tractor with backhoe and front loader attachments and awarded
a contract for the purchase of such equipment in accordance with Texas
Revised Civil Statutes article 2368a.1 to Hyco Equipment Co., Inc.; 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 a tractor with backhoe and front loader attachments
at an amount not to exceed $70^000.00; 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 2388a.1 on October 20, 1982 and October 27, 1982;
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 Hyco Equipment
CO.* Inc. to purchase a tractor with backhoe and front loader
attachments 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
$57,785.0U for the purpose of acquiring a tractor with backhoe and front
loader attachments 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 November 16^ 1982, 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: November 16, 1982 Amount: $57,785.00
Issued: Register No.
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
FIFTY SEVEN THOUSAND SEVEN HUNDRED EIGHTY FIVE
AND NO/100 DOLLARS
$57,785°00 in lawful money of the United States of America, with
interest thereon from date of issue until paid at the rate of 7.9% per
cent per annum, payable , 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 reyistered owner hereof, with such
payments to be due on the dates and in the amounts as follows:
DATE PRINCIPAL INTEREST TOTAL
1984 $14,446.25 $4,565.02 $19,011.27
1984 $14,446.25 $3,423.76 $17,870.01
1986 $14,446.25 $2,282.51 $16,728.76
19813 $14,446.25 $1,141.25 $15,587.50
$57,785.00 $11,412.54 $69,197.54
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.
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 16th day of November, 1982.
Mayor
ATTEST
City Secretary
FULL CONSIDERATION therefor being hereby acknowledged, this
Certificate of Obligation was delivered to Hyco Equipment Co., Inc., the
original holder, on this date, to -wit: , and by it
hereby transferred and assigned to
Hyco Equipment Co., Inc.
By
Section 4: While said Certificate of Obligation or installment thereof
is outstandiny 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 a 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 convenants 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 be 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 UNANIMOUSLY FIRST READING THIS 16th DAY OF November
PASSED SECOND READING THIS DAY OF
APPROVED THIS16th DAY OF November
ATTEST:
aw, City -cretary
APPROVED AS TO FORM:
Said
SCOTT BOUNDS, City Attorney
, 1982.
, 1982.
, 1982.
Larry Corley, Mayor Proem