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ORD CC 1980-76 - Issue BondsORDINANCE NO. 80 -76 AN ORDINANCE AUTHORIZING ISSUANCE OF A SINGLE SERIES CITY OF HUNTSVILLE PUBLIC WORKS - POLICE AND MUNICIPAL COURT BUILDING CERTIFICATE OF OBLIGATION IN THE AMOUNT OF $12,350.00; AND CONTAINING OTHER PROVISIONS RELATED TO THE SUBJECT. WHEREAS, the City Council of the City of Huntsville, Texas, has heretofore purchased land and an existing building for police and municipal court purposes for the City; and WHEREAS, the City Council has heretofore entered into a contract necessary to construct interior additions and improvements to said property; and WHEREAS, City Council has determined it necessary to execute a change order to immediately repair the roof of the building; and WHEREAS, the City has authorized the publication of intention to issue cer- tificates of obligation, payable from City ad valorem taxes, for the purpose of evidencing the indebtedness of the City for all or part of the costs of said construction and improvements to the police and munici- pal court building; therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS: Section 1: The City Council hereby approves, ratifies, and confirms in all respects the contract with Circle Double "C" Ent., Inc. for construction of interior additions and improvements to the police and municipal court building and Change Order No. 2 under said contract. Section 2: A single series negotiable and interest bearing Certificate of Obligation, to be designated as City of Huntsville, Texas Public Works - Police and Municipal Court Building Certificate of Obligation, Series 1981 (hereinafter called Certificate) is hereby authorized to be issued and delivered in the principal amount of $12,350.00 for the purpose of evidencing the indebtedness of the City for all or any part of the cost of the remodeling of the Police and Municipal Court Building under Change Order No. 2 of a contract with Circle Double "C" Enterprises, Inc.. Section 3: The Certificate shall be dated December 17, 1980 and shall mature April 15, 1982. The Certificate may be redeemed prior to its scheduled maturity, at the option of the City, at any time after delivery, in the manner provided in the Form of Certificate. Section 4: The Certificate shall bear interest from the date of initial de- livery shown on the face of the Certificate at a rate per annum not in excess of that prescribed by Article 717k -2, Texas Revised Civil Statutes, as amended, interest payable at maturity on April 15, 1982, or upon pre- payment. Section 5: The Certificate shall be registered as hereinafter set forth and shall be in the following basic form, to -wit: FORM OF CERTIFICATE No. 81- $12,350.00 December 17, 1980 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF WALKER CITY OF HUNTSVILLE, TEXAS PUBLIC WORKS - POLICE AND MUNICIPAL COURT BUILDING CERTIFICATE OF OBLIGATION SERIES 1981 - • On April 15, 1982, the CITY OF HUNTSVILLE (the City) in the County of Walker, in the State of Texas, promises to pay to bearer the principal amount of TWELVE THOUSAND THREE HUNDRED FIFTY AND NO /100 DOLLARS ($12,350.00) and to pay interest thereon, from the initial date of delivery shown on the face hereof, at the rate of % per annum payable on or before April 15, 1982. The principal of this Certifi- cate and the interest shall be payable to the registered owner hereof in lawful money of the United States of America, without exchange or collection charges, upon presentation and surrender of this Certifi- cate at (Bank) , , Texas, which shall be the paying agent for this Certificate. THIS CERTIFICATE is a single series negotiable certificate, dated December 17, 1980, in the amount of $12,350.00, issued in accordance with the Constitution and laws of the State of Texas, particularly Article 2368a.1, Texas Revised Civil Statutes, as amended, for the purpose of providing up to $12,350.00 for the costs of repairing the roof incurred in connection with the remodeling of the Police and Municipal Court Building of the City. The City reserves the right to prepay all or any part of this Certi- ficate at any time prior to the due date or maturity thereof without premium or penalty of any kind. IT IS HEREBY certified, recited, and covenanted that this Certificate has been duly and validly authorized, issued, and delivered; that all acts, conditions, and things required or proper to be performed, exist and be done precedent to or in the issuance and delivery of this Certificate, have been performed, existed, and been done in accordance with law; that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Certificate, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in the City and have been pledged for such payment within the limits prescribed by law; that this Certificate shall be a debt of the City within the meaning of Article XI, Sections 5 and 7 of the Constitution of Texas. 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 17th day of December, 1980, Certificate No. 81- . ATTEST: Mayor City Secretary FULL CONSIDERATION therefor being hereby acknowledged, this Certificate of Obligation was delivered to CIRCLE DOUBLE "C" ENT., INC., the original holder, on this date, to -wit: (Delivery date) and by it hereby trans- ferred and assigned to CIRCLE DOUBLE "C" ENT., INC. By JP • Section 6: 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 prin- cipal 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 Obli- gation 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, respect- ively, 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 cov- enants 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 7: The Mayor and City Secretary are hereby empowered and directed to proceed with the delivery of said Certificate of Obligation and the completion of said contract change order 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 8: The interest rate for the Certificate of Obligation hereinabove authorized shall be as follows: Certificate No. 81- $12,350.00 9% 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 9: 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 exeuction by the Mayor and City Secretary. Section 10: This ordinance shall take effect immediately from and after its passage by City Council. INTRODUCED, READ AND APPROVED by unanimous vote of the City Council of the City of Huntsville, Texas, on this the 16th day of December, 1980. TH DE SHAW, City Secretary APPROVED: ,cuphi SCOTT BOUNDS, City Attorney f M RRIS I. WALLE', Mayor