ORD CC 11/09/76 - Obligation BondsORDINANCE NO. 76 -22
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,
AUTHORIZING THE ISSUANCE OF A SINGLE "CITY OF HUNTSVILLE, TEXAS,
EQUIPMENT ACQUISITION CERTIFICATE OF OBLIGATION ", DATED NOVEMBER 9,
1976, IN THE AMOUNT OF $100,000.00, PRESCRIBING THE FORM OF
CERTIFICATE AND THE FORM OF ENDORSEMENT TO APPEAR THEREON; LEVYING
A CONTINUING DIRECT ANNUAL AD VALOREM TAX ON ALL TAXABLE PROPERTY
WITHIN THE LIMITS OF THE SAID CITY TO PAY THE INTEREST THEREON AND
TO CREATE A SINKING FUND FOR REDEMPTION THEREOF, AND PROVIDING FOR
THE ASSESSMENT AND COLLECTION OF SUCH TAXES; AND ENACTING PROVISIONS
INCIDENT AND RELATING TO THE PURPOSE AND SUBJECT OF THIS ORDINANCE.
WHEREAS, heretofore on the 6 day of ®'G.41,i5r4
1976, the City Council of the City of Huntsville, Texas, by Ordinance
duly adopted and entered of record officially ascertained, determined
and confirmed its prior determination that it is necessary and in the
best interest of the City and its inhabitants that the City acquire
two Sanitation Department vehicles to be used in connection with the
collection and disposition of waste and refuse and in furtherance of
providing for the public health and welfare, at a cost to the City
in the amount of $100,000.00; and,
WHEREAS, in said Ordinance the City Council found that a
bona fide emergency existed as defined and set forth in Article
2368a.1, Revised Civil Statutes of Texas, and that by virtue thereof
advertisement for bids was not necessary and notice of intention to
issue such Certificates of Obligation for the purchase price of such
equipment was also not necessary, and that therefore all things
requisite had been done under the law in order to adopt an Ordinance
authorizing the issuance of said interest bearing Certificate of
Obligation of the City in the amount of $100,000.00 for acquisition of
Sanitation Department vehicles upon terms approved by the City Council,
said Certificate to bear interest at a rate not to exceed 5.9%
per annum and to be payable in annual payments of principal and interest
and to finally mature not later than November 8, 1980, and to be issued
upon the full faith and credit of the City and payable from ad valorem
taxes; and,
WHEREAS, where as it now appears to the City Council that all
prerequisites to the valid authorization of the intended Certificate
of Obligation for its stated purpose has been accomplished in accordance
with the law, including the Certificate of Obligation Act of 1971, and
that this Council may therefore proceed with the Ordinance authorizing
the issuance of said Certificate of Obligation;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF HUNTSVILLE, TEXAS:
Section 1: That one interest bearing Certificate of Obligation
of the City of Huntsville to be known and designated as "City of
Huntsville, TExas, Equipment Acquisition Certificate of Obligation ", in
the principal sum of $100,000.00, shall be, and the same is hereby
authorized to be issued and the same is hereby issued for public pur-
poses, to -wit: the acquisition of two new 1976 Ford Cab and Chassis
and two new Coby Fork Tainer Front Loading Refuse Compaction Bodies to
be used in the City Sanitation Department in furtherance and in pro-
tection of the health and welfare of the public, and the Mayor and
City Secretary shall have joint control of such Certificate for the
purposes of delivering same to the owners in accordance with this
Ordinance and they shall see to the proper completion thereof in
accordance herewith.
Section 2: That said Certificate shall be dated November 9,
1976, and shall mature and be payable in installments (subject to the
City's option of prior payment), shall be in the denomination, and
shall bear interest as set forth in the following form, to -wit:
Dated: November 9, 1976 $100,000.00
Register No.:
ISSUED: UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF WALKER
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 THOUSAND AND NO /100 DOLLARS
($100,000.00), in lawful money of the United States of America, with
interest thereon from date of issue until paid at the rate of 5.9%
per cent per annum, payable on November 9, 1977,
and annually thereafter on the 9th day of November of each and every
year as hereinafter provided until such aggregate 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
November 9, 1977
November 9, 1978
November 9, 1979
November 9, 1980
PRINCIPAL
$25,000.00
25,000.00
25,000.00
25,000.00
INTEREST
as accrued
as accrued
as accrued
as accrued
This Certificate of Obligation represents a single issue
Certificate of Obligation of the issue authorized by the City Council
of the City of Huntsville for the purpose of acquiring sanitation
equipment, and in accordance with an Ordinance duly confirming the
purchase of such sanitation equipment adopted and passed by the City
Council of the City of Huntsville on the day of
1976, and duly recorded in the minutes of said City Council.
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 with-
out 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, and of the series of which it is a part, 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 9th day of November,
1976.
MORRIS I. WALLER, MAYOR
ATTEST:
RUTH DeSHAW, CITY SECRETARY
(Form of Certificate of Delivery and Assignment to be typed on the
back of Certificate of Obligation)
FULL CONSIDERATION therefor being hereby acknowledged, this
Certificate of Obligation was delivered to
the original holder, on this date, to-wit: , 1976,
and by it hereby transferred and assigned to
(Assignor's Signature)
Section 3: While said Certificate of Obligation or install-
ments thereof are 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 current interest on said Certificate of Obligation and to
provide the necessary sinking fund, full allowance being made for de-
linquencies and costs of collections, 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 purpose is
adequate to permit a legally sufficient tax in consideration of all other
outstanding obligations.
Section 4: 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 5: That the public importance of this measure and the
fact that it is to the best interest of the City to acquire the equip-
ment 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 6: 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.
PASSED AND APPROVED on first reading by unanimous vote of
the City Council of the City of Huntsville, Texas, on this the 9th
day of November, 1976.
APPROVED AS TO FORM:
414
ANE
ANT CITY ATT(
MORRIS 1. WALLER, MAYOR