ORD CC 1975-12 - Certificate of Obligation i
ORDINANCE NO. 75-12
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 JULY 29 ,
1975 , IN THE AMOUNT OF $19 , 144 , 20 , PRESCRIBING THE FORM OF CERTIFI-
CATE AND THE FORM OF ENDORSEMENT TO APPEAR THEREON; LEVYING A CON.-
TINUING DIRECT ANNUAL AD VALOREM TAX ON ALL TAXABLE PROPERTY WITHIN
THE LIMI^1S OF THE SAID CITY TO PAY THE INTEREST 'THEREON AND TO CREATE
1 1 G-FUND�07' ED�1`4P OAT-TFE O ,PROVIDING FOR THE ASSESS-
MENT AND COLLECTION OF SUCH TAXES; AND ENACTING PROVISIONS INCIDENT
AND;RELATING TO THE PURPOSE AND SUBJECT OF THIS ORDINANCE.
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WHEREAS, heretofore, on the 29th day of July, 1975, the j
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 emergency j
ambulance equipment to be used in connection with the City of Hunts-
ville ' s emergency ambulance operation in order to provide for the public.
health and welfare, at a cost to the City in the amount of the accepted
bid for such emergency ambulance vehicle; and
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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 said interest
bearing certificate of obligation of the City in the amount of $
for such purposes upon_ terms approved by the City Council, said certifi-
cate is to bear interest at a rate not to exceed. r?,,-, per annum and to
mature not later than July 29 , 1979 , and to be issued upon the full
faith and credit of the City and payable from ad valorem taxes; and
WHEREAS, official notice of the City Council' s intentions
aforementioned was duly given and the notice requesting bids for the
purchase of such equipment and the publication thereof in the City ' s
official newspaper, The Huntsville Item, was made within the time and
in the manner as required by law; and
WHEREAS , it appears to the City Council that all prerequisitesi
to the valid authorization of the intended certificate of obligation_ l
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;
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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 Ob-
1-ig-at on" , in.�tYre-prirrcip-a-1-sum-o-f-�$-1-9;1-44:20 sera-l-l-be—and-the me
. . .is hereby authorized to be issued and the same is hereby issued for
public purposes,, to-wit: . the acquisition of an emergency modular
ambulance vehicle for use by the City of Huntsville, Texas , in pro-
viding for .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 July 29 ,
1975, 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 July 29 , 197.5 $19 ,144 . 20
ISSUED:---=------ UNITED STATES OF AMERICA
STATE OF TEXAS : .
COUNTY OF WALKER
CITY OF HUNTSVILLE, TEXAS , EQUIPY_1ENT ACQUISITION CERTIFI-
CATE 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 bearer in installments as below indicated the total
sum of
NINETEEN THOUSAND 'ONE HUNDRED FORTY-FOUR AND 20/100.
(.$1 0 14.4. , 20 ) , in lawful .money of the United States. of Ame-r-ica, with
interest hereon from date until paid at the rate of six ore-.ha1 . :�6'Z per .cent
per annur•.i j payable on July 29 , 1976, and annually thereafter on Juiy
29th of each year.
BOTH PRINCIPAL AND INTEREST. on this certificate of obligation
are hereby made payab.le at the First National Bank, Huntsville, Texas ,
without' ex>.change or collection charges to the owner or holder,: the prin- .
cip.al to be paid upon presentation of this certificate for ,principal pay-
ment endorsement, and the interest to be paid upon presentation hereof
for .interest payment endorsement by said Bank on the reverse side hereof.
The principal and interest of this certificate of obligation is payable
in annual installments , as follows
DATE PRINCIPAL INTEREST
July 29 1976 $4,786.05 as accrued
July 29 , 1977 $4,786.05 as accrued
July 29 , 1978 $4,786.05 as accrued
July 29, 19 79 $4,786.05 as accrued
This certificate of obligation represents a single issue
certificate of obligation of the issue authorized by ,the City Council
�. for the purpose of acquiring an emergency modular ambulance vehicle,
1-1—pu-rs-uant—to—notice—o-f—i nt-e-nt-io-n—dul-y—is-s-ue-d—and--pub-l-i.sYied�
time and manner prescribed by law and in accordance with an ordinance
duly confirming the purchase of said equipment adopted and passed by
the City Council of the City of Huntsville on the 29th day of July,
1975, and duly recorded in the minutes of said City Council.
The City reserves the right to prepay all or any part of j
this Certificate at any time prior to the due date or maturity thereof
without premium or penalty of any kind.
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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 re-
quired 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 cons ide rat ion. 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 j
date of this certificate of obligation being the 29th day of July, 1975.
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)
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FULL' CONSIDERATION therefor being hereby acknowledged.,
this certificate of obligation was delivered to
the original holder, on this date, to-wit :
1975, and by it hereby transferred and assigned to First .
National Bank, Huntsville, Texas .
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% , 1
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
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 pro-
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vide and levy a tax legally and fully sufficient for such certificate
of obligation., it having been determined that the existing and available
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taxing authority of 'the City for such purpose is, adequate to permit a
legally sufficient tax in consideration of all other outstanding ob-
ligations..
Section 4: The Mayor and City Secretary are Hereby empowered
and directed to proceed with the delivery of said certificate of obli-
gation 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 Cit_y . 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 that the rule requiring ordinances to be read at t�,,7o meetings
of the City Council, be suspended, and said rule is hereby suspended,
and these ordinances .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 unarii mbus vote
of the City Council of the City. of Huntsville, Texas, on this the
29th day of .July, 1975.
MORRIS I. WALLER, IAYOR
k 'TES
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'RUTH DeSriAw, City Secretary
Aa P OVED AS TO F ,RM
MARTIN D. COrLEY,
City Attorney
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