ORD 1981-28 - Purchase EquipmentORDINANCE NO. 81- 28
AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY OF HUNTSVILLE
EQUIPMENT ACQUISITION CERTIFICATE OF OBLIGATION, SERIES 1981,
IN THE AMOUNT OF $26,845.00; AND CONTAINING OTHER PROVISIONS
RELATED TO THE SUBJECT.
WHEREAS the City Council of the City of Huntsville received competitive bids
for a Tractor and Flail Mower and awarded a contract for the purchase
of such equipment in accordance with Texas Revised Civil Statutes article
2368a.1 to Hyco Equipment, 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 and flail mower at an amount not to exceed
$32,000.00; and
WHEREAS the notice of intention to issue Certificates of Obligation was pub-
lished at the times and in the manner required by Texas Revised Civil
Statutes article 2368a.1 on February 22, 1981 and March 1, 1981;
therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS:
Section 1: The City Council ratifies the contract with Hyco Equipment, Inc.
to purchase a tractor and flail mower 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
$26,845.00 for the purpose of acquiring a tractor and flail mower
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 March 24, 1981, 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: March 24, 1981 Amount: $26,845.00
Issued:
UNITED STATES
STATE OF
COUNTY OF
CITY OF HUNTSVILLE, TEXAS,
CERTIFICATE OF
Register No. 81-
OF AMERICA
TEXAS
WALKER
EQUIPMENT ACQUISITION
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
TWENTY -SIX THOUSAND EIGHT HUNDRED FORTY -FIVE AND NO /100 DOLLARS
($26,845.00) 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 collec-
tion 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
1982
1983
1984
1985
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 prin-
cipal 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 24th day of March, 1981.
ATTEST:
Mayor
City Secretary
FULL CONSIDERATION therefor being hereby acknowledged, this Certificate
of Obligation was delivered to HYCO EQUIPMENT, INC., the original holder,
on this date, to -wit: , and by it hereby transferred and
assigned to
HYCO EQUIPMENT, INC.
By
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 a sinking fund sufficient to pay each installment of
principal as the 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 cur-
rent 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 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 preserva-
tion 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 provisions 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.
INTRODUCED, PASSED AND APPROVED on first reading by unanimous vote of the
City Council of the City of Huntsville, Texas, on this the , . to day of
/%NcN , 1981.
ATTEST:
APPROVED AS TO iFORM:
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