ORD CC 1980-25 - Certificate of Obligation - $85047• •
ORDINANCE NO. 80 -25
AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY OF HUNTSVILLE
EQUIPMENT ACQUISITION CERTIFICATE OF OBLIGATION IN THE
AMOUNT OF $85,047; and CONTAINING OTHER PROVISIONS RELATED
TO THE SUBJECT.
WHEREAS, the City Council of the City of Huntsville received competitive bids
for a High Velocity Sewer Cleaner and awarded a contract for purchase of
such equipment in accordance with Texas Revised Civil Statute Article
2368a.1; 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 High Velocity Sewer Cleaner at an amount not to exceed
$85,047.00; 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
Statute article 2368a.1 on March 26, 1980 and April 2, 1980;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS:
Section 1: The City Council ratifies the contract to purchase a high velocity
sewer cleaner and hereby confirms the purchase of such equipment.
Section 2: A single series 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 author-
ized to be issued and delivered in the principal amount of $85,047.00
for the purpose of acquiring a high velocity sewer cleaner for use by
the City, and the Mayor Pro tem and City Secretary shall have joint
control of such certificate for the purpose of delivering same to the
owners in accordance herewith.
Section 3: The Certificate shall be dated July 9, 1980, shall mature and be
payable in five (5) 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:
Date: July 9, 1980 Amount: $85,047.00
Issued:
July 9, 1980
UNITED STATES
STATE OF
COUNTY OF
CITY OF HUNTSVILLE, TEXAS,
CERTIFICATE OF
Register No. 80-
OF AMERICA
TEXAS
WALKER
EQUIPMENT ACQUISITION
OBLIGATION
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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 in-
dicated the total sum of
EIGHTY -FIVE THOUSAND FORTY -SEVEN AND NO /100 DOLLARS
($85,047.00), 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 July 9, 1981, and annually thereafter on the 9th day of July 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 collec-
tion charges to the registered owner hereof, with such payments to be due on
the dates and in the amounts as follows:
DATE
1981
1982
1983
1984
1985
PRINCIPAL
INTEREST TOTAL
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 proviision 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 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 Pro tem and attested to by the City Secretary, the date of this Certifi-
cate of Obligation being the 9th day of July, 1980.
ATTEST:
Ruth ueShaw, city secretary
E. Larry Dickens, Mayor Pro tem
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FULL CONSIDERATION therefor being hereby acknowledged, this Certificate
of Obligation was delivered to ENVIRONMENTAL SALES, the original holder, on
this date, to -wit: and by it hereby transferred and
assigned to
For ENVIRONMENTAL SALES
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 prin-
cipal 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
names; 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, 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 Pro tem 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 6: The interest rate for the Certificate of Obligation hereinabove
authorized shall be as follows:
Certificate Register No. 80- $85,047.00
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.
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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 con-
templated 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 ordin-
ance 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 Pro tem 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 iltj, day of July, 1980.
aw, ity ecretary
APPROVED AS TO FORM:
Steosi
Scott Bounds, City Attorney
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r
E. Larry Dickens, ayor Pro tem