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ORD CC 05/15/79 - Equipment Acquisition• ORDINANCE NO. 79 -5 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AUTHORIZING THE ISSUANCE OF A SINGLE SERIES "CITY OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION CERTIFICATE OF OBLIGATION ", DATED MAY 15, 1979 , IN THE AMOUNT OF $44,959.27, PRESCRIBING THE FORM OF A 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 PRO- VIDING 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 15th day of May, 1979, 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 certain equip- ment to be used in the connection with the City of Huntsville Street Department for public purposes, at a cost to the City in the amount of accepted bids for each item of said equipment; and, WHEREAS, in said Ordinance the City Council found that all notices required by law have been issued and all things requisite done in order to adopt an Ordinance authorizing the issuance of a single series interest bearing certificate of obligation of the City, in an amount of $44,959.27, for such purposes and upon terms approved by the City Council, said certificate to bear interest at a rate of interest not to exceed 6.45% per annum and to mature not later than May 15, 1983, and to be issued upon the full faith and credit of the City and payable from ad valorem taxes; WHEREAS, official notice of the City Council's intentions aforementioned was duly given as provided by law as well as notice of the intent to issue said Certificate of Obligation on May 15, 1979, in an amount not to exceed $44,959.27, all of which publications and notices were within the time and manner as required by law; and, WHEREAS, it 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; • 1,4 • • NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS: Section 1: That a single series interest bearing Certificate of Obligation of the City of Huntsville, Texas, to be known and design- ated as "City of Huntsville, Texas, Equipment Acquisition Certificate of Obligation" in the principal sum of $44,959.27, shall be, and the same is hereby, authorized to be issued and the same is hereby issued for public purposes, to -wit: the acquisition of one (1) Vacuum Street Sweeper for use by the City of Huntsville Street Department as street sweepers, all for public purposes, and the Mayor and City Secretary shall have joint control of such Certificate for the purpose of delivering same to the owner 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 May 15, 1979, and shall mature and be payable in four equal installments (subject to the City's option of prior payment), shall be in the denomination, as hereinabove authorized, shall bear interest as hereinafter set forth, shall be registered as hereinafter set forth, and shall be in the following basic form, to -wit: Dated May 15, 1979 Amount ISSUED: Register No. 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 FORTY FOUR THOUSAND NINE HUNDRED FIFTY NINE AND 27/100 ($44,959.27) DOLLARS, in lawful money of the United States of America, with interest thereon from date of issue until paid at the rate of 6.45% per annum, payable on May 15, 1980, and annually thereafter on the 15th day of May 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 May 15, 1980 May 15, 1981 May 15, 1982 May 15, 1983 PRINCIPAL INTEREST $11,239.82 as accrued 11,239.82 as accrued 11,239.82 as accrued 11,239.81 as accrued This Certificate of Obligation is a single series Certificate of Obligation of the issue authorized by the City Council of the City of Huntsville for the purpose of acquiring Street Department equipment, and in accordance with an Ordinance duly confirming the purchase of such equipment adopted and passed by the City Council of Huntsville, on the 15th day of May, 1979, and duly recorded in the Minutes of the 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 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, 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, foie 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 consti- tutional 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 be signed by the Mayor and attested to by the City Secretary, the date of this Certificate of Obligation being the 15th day of May, 1979. ATTEST: MORRIS I. WALLER, MAYOR 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 GULF STATES CRANE AND EQUIPMENT COMPANY, the original holder, on this date, to-wit: May , 1979, and by it hereby transferred and assigned to FIRST NATIONAL BANK of HUNTSVILLE, WALKER COUNTY, TEXAS. GULF STATES CRANE AND EQUIPMENT COMPANY BY: Authorized Representative Section 3: While said Certificate of Obligation or installment 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 out- standing 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 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 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: The interest rate for said Certificate of Obligation hereinabove authorized shall be six and forty-five hundredths (6.45%) percent per annum and at the time said Certificate of Obligation is issued such Certificate shall be registered and recorded by such registered number on the books of said City to the registered owner thereof. Section 6: 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 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 7: 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 15th day of May, 1979. M RR IS IS I. WALLER, MAYOR ATTEST: T SECRETARY APPROVED AS TO FORM: