ORD CC 1980-55 - Certificate of Obligation - $85486• •
ORDINANCE NO. 80-55
AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY OF HUNTSVILLE
EQUIPMENT ACQUISITION CERTIFICATE OF OBLIGATION IN THE
AMOUNT OF $85,486; AND CONTAINING OTHER PROVISIONS RELATED
TO THE SUBJECT.
WHEREAS, the City Council of the City of Huntsville received competitive bids
for the purchase and installation of interior furnishings for the Huntsville
Municipal Justice Center and awarded a contract for purchase and install-
ation of such furnishings in accordance with Texas Revised Civil Statute
Article 2368o,l/ 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
Dort of such furnishings at an amount not to exceed $110,008/ 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 2368a.1 on September 28, 1980, and October 5, 1980;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS:
Section 1: The City Council ratifies the contract with Litton Office Products
to purchase and install interior furnishings for the Huntsville Municipal
Justice Center and hereby confirms the purchase of such furnishings.
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 Dbligntioo" is
hereby authorized to be issued and delivered in the principal amount of
$85,486 for the purpose of purchase and installation of interior furnish-
ings for the Huntsville Municipal Justice Center for use by the City, and
the Mayor 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 October 28, 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:
Dated: October 28, 1980 Amount: $
Issued:
UNITED STATES
STATE OF
COUNTY OF
CITY OF HUNTSVILLE, TEXAS,
CERTIFICATE OF
Register No. 80-
OF AMERICA
TEXAS
WALKER
EQUIPMENT ACQUISITION
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 in-
dicated the total sum of
($ ), 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 , and annually thereafter on the day of
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 PRINCIPAL INTEREST TOTAL
1981
1982
1983
1984
1985
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 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 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 and attested to by the City Secretary, the date of this Certificate of
Obligation being the day of , 1980.
ATTEST: MORRIS I. WALLER, Mayor
RUTH DE SHAW, City Secretary
• •
FULL CONSIDERATION therefor being hereby acknowledged, this Certificate
of Obligation was delivered to Litton Office Products , the original
holder, on this date, to-wit: , and by it hereby trans-
ferred and assigned to
for
Litton Office Products
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 principal as the same becomes dne, 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 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 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-
$
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 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 ordinance 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 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 271h day of O ct O be i 1980.
ATTEST:
RUTH DE SHAW, City Secretary
APPROVED:
s
SCOTT BOUNDS, City Attorney
-4-
MORRIS I. WALLER, Mayor