ORD CC 1980-61 - Certificate of Obligation - $24900 and $11860•
ORDINANCE NO. 80-61
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,
TEXAS, AUTHORIZING THE ISSUANCE OF A SERIES OF TWO "CITY OF
HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION CERTIFICATES OF
OBLIGATION," FOR REAR LOADING REFUSE TRUCK - CAB CHASSIS
AND BODY, IN THE AMOUNTS OF $24,980°00 and $11,860.00; AND
CONTAINING OTHER PROVISIONS RELATED HERETO.
WHEREAS, the City Council of the City of Huntsville received competitive bids
for rear loading refuse truck - cab chassis and body and awarded contracts
for the purchase of such equipment in accordance with Texas Revised Civil
Statute Article 2388a,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 rear loading refuse truck - cab chassis and body at
an amount not to exceed $37,000,00/ 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
Statutes Article 2368a.1/ therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS:
Section 1: The City Council ratifies the contracts to purchase a rear loading
refuse truck - cab chassis and body and hereby confirms the purchase of
such equipment as follows:
Port City Ford
Davis Truck & Equipment Co,
- $24,980,00
- $11/860.00
Section 2: A series of two interest bearing Certificates of Obligation of
the City of Huntsville, Texas, to be known and designated as "City of
Huntsville, Texas, Equipment Acquisition Certificates of Obligation"
are hereby authorized to be issued and delivered in the principal amounts
of $24,980 and $11,868 for the purpose of acquiring rear loading refuse
truck - cab chassis and body, respectively, for use by the City, and
the Mayor and City Secretary shall have joint control of such certifi-
cates for the purpose of delivering same to the owners in accordance
herewith.
Section 3: The Certificates shall be dated November 19, 1980, shall mature
and be payable in four (4) equal installments (subject to the City's
option of prior payment), and shall be registered as hereinafter set
forth, and shall be in the following basic form, to-wit:
Date: November 19, 1980 Amount: $
Issued:
UNITED STATES
STATE OF
COUNTY OF
CITY OF HUNTSVILLE, TEXAS,
CERTIFICATE OF
Register No. 81-
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
indicated 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 ag-
gregate 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
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 pen-
alty 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 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 date of this Certificate of
Obligation being the 19tb day of November, 1980,
MORRIS I. WALLER, Mayor
ATTEST:
RUTH DE SHAW, City Secretary
FULL CONSIDERATION therefor being hereby acknowledged, this Certificate
of Obligation was delivered to , the original
holder, on this date, to-wit: , and by it hereby trans-
ferred and assigned to
(Contractor)
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 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
-2-
• •
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 Certifi-
cate 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 out-
standing obligatious.
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 Jo all things necessary or prerequisite thereto.
Section 6: The Certificates of Obligation shall bear interest from the date
of initial delivery shown on the face of each Certificate at a rate
per annum not in excess of that prescribed by Article 717b-2, Texas
Revised Civil Statute, as amended.
At the time said Certificate of Obligation is issued such Certificates
shall be registered and recorded by such register numbers on the books
of said City to the registered owner tbereof.
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 ordaioed.
Section 8: Notwithstanding any other provisions in the within ordinance to
the contrary as to the authorized issuing date for such Certificates of
Obligation, such Certificates 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 18th day of November, 1980.
ATTEST:
SHAW, City Secretary
APPROVED AS TO FORM:
SCOTT BOUNDS, City Attorney
-3-
77/1'?).1°)^'. ael101L--
MORRIS I. WALLER, Mayor
Date:
Issued:
November 19, 1980
November 24, 1980
UNITED STATES
STATE OF
COUNTY OF
CITY OF HUNTSVILLE, TEXAS,
CERTIFICATE OF
Amount: $24,980.00
Register No. 81 -2
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
indicated the total sum of
TWENTY -FOUR THOUSAND NINE HUNDRED EIGHTY AND NO /100 DOLLARS
($24,980.00), in lawful money of the United States of America, with interest
thereon from date of issue until paid at the rate of nine per cent per annum,
payable on November 24, 1981 and annually thereafter on the 24th day of
November 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
PRINCIPAL
$ 6,245.00
$ 6,245.00
$ 6,245.00
$ 6,245.00
$24,980.00
INTEREST
$ 2,248.20
$ 1,686.15
$ 1,124.10
$ 562.05
$ 5,620.50
TOTAL
$ 8,493.20
$ 7,931.15
$ 7,369.10
$ 6,807.05
$30,600.50
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 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 date of this Certificate of
Obligation being the 19th day of November, 1980.
MORRIS I. WALLER, Mayor
ATTEST:
RUTH DE SHAW, City Secretary
• •
FULL CONSIDERATION therefor being hereby acknowledged, this Certificate
of Obligation was delivered to PORT CITY FORD TRUCK SALES, the original holder,
on this date, to -wit: and by it hereby transferred and
assigned to FIRST NATIONAL BANK OF HUNTSVILLE.
PORT CITY FORD TRUCK SALES
By
-2-
City of Huntsville
LEGAL DEPARTMENT
P. 0. BOX 839 — HUNTSVILLE. TEXAS 77340 — (713) 295-6471
November 19, 1980
First National Bank of Huntsville
P. 0. Box 659
Huntsville, Texas 77340
Re: Certificate of Obligation issued
by the City of Huntsville in the
amount of $24,980.00
Gentlemen:
This is to certify that I have examined an equipment acquisition
Certificate of Obligation to be issued by the City of Huntsville, Texas,
in the amount of $24,980.00, bearing interest at the rate therein specified
and payable as provided in said Certificate.
This Certificate of Obligation is issued pursuant to the terms of Texas
Revised Civil Statutes, Article 2368a.1 and is for the purpose of financing
the purchase of equipment for the City. This Certificate was authorized
by ordinance dated November 18, 1980, which ordinance provides for the levying
of a continuing direct annual ad valorem tax on all taxable property within
the limits of the City of Huntsville, Texas, to pay the interest on such
Certificate of Obligation and to create a sinking fund for redemption of
the principal amount. The ordinance also provides for the assessment and
collection of such taxes and these provisions meet the requirements of the
Statute and Article XI, Sections 5 and 7 of the Constitution of the State
of Texas.
As required by the Statute authorizing the Certificate of Obligation
at the time advertisement for bids was made concerning the equipment to be
purchased, a provision was made indicating that the successful bidder needed
to elect if the successful bidder would accept the Certificates of Obligation
or endorse same over in accordance with arrangements made by the City of
Huntsville, Texas. In this connection, the successful bidder elected to
endorse these obligations to the First National Bank of Huntsville.
•
First National Bank of Huntsville
November
Page 2
Based upon the above, it is my opinion that this Certificate of
Obligation is a legal, valid and binding obligation of the City of
Huntsville, Texas, and the interest and principal due thereon is payable
in accordance with the Certificate of Obligation from the budgeted funds
of the City of Huntsville. The City's issuance, execution and delivery
of the certificate is not subject to any authorization, consent or review
of any government body, public officers or regulatory authority not here-
tofore obtained. The interest on the Certificate of Obligation is exempt
from Federal income taxes under existing statutes, rulings, regulations
and court decisions.
Respectfully submitted,
Scott Bounds
City Attorney
SB:eht
Date: November 19, 1980
Issued: November 24, 1980
UNITED STATES
STATE OF
COUNTY OF
CITY OF HUNTSVILLE, TEXAS,
CERTIFICATE OF
Amount: $11,860.00
Register No. 81-3
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
indicated the total sum of
ELEVEN THOUSAND EIGHT HUNDRED SIXTY AND NO/100 DOLLARS
($11,860.00), in lawful money of the United States of America, with interest
thereon from date of issue until paid at the rate of nine per cent per annum,
payable on November 24, 1981, and annually thereafter on the 24th day of
November 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
PRINCIPAL
$ 2,965.00
$ 2,965.00
$ 2,965.00
$ 2,965.00
$11,860.00
INTEREST
$ 1,067.40
$ 800.55
$ 533.70
$ 266.85
$ 2,668.50
TOTAL
$ 4,032.40
$ 3,765.55
$ 3,498.70
$ 3,231.85
$14,528.50
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 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 date of this Certificate of
Obligation being the 19th day of November, 1980.
MORRIS I. WALLER, Mayor
ATTEST:
RUTH DE SHAW, City Secretary
1
FULL CONSIDERATION therefor being hereby acknowledged, this Certificate
of Obligation was delivered to DAVIS TRUCK & EQUIPMENT CO., the original
holder, on this date, to -wit: and by it hereby trans-
ferred and assigned to FIRST NATIONAL BANK OF HUNTSVILLE.
- 2-
DAVIS TRUCK & EQUIPMENT CO.
By
City of Huntsville
LEGAL DEPARTMENT
P. 0. BOX 839 — HUNTSVILLE, TEXAS 77340 — (713) 295-6471
November 19, 1980
First National Bank of Huntsville
P. O. Box 659
Huntsville, Texas 77340
Re: Certificate of Obligation issued
by the City of Huntsville in the
amount of $11,860.00
Gentlemen:
This is to certify that I have examined an equipment acquisition
Certificate of Obligation to be issued by the City of Huntsville, Texas,
in the amount of $11,860.00, bearing interest at the rate therein specified,
and payable as provided in said Certificate.
This Certificate of Obligation is issued pursuant to the terms of Texas
Revised Civil Statutes, Article 2368a.1 and is for the purpose of financing
the purchase of equipment for the City. This Certificate was authorized
by ordinance dated November 18, 1980, which ordinance provides for the levy-
ing of a continuing direct annual ad valorem tax on all taxable property
within the limits of the City of Huntsville, Texas, to pay the interest on
such Certificate of Obligation and to create a sinking fund for redemption
of the principal amount. The ordinance also provides for the assessment
and collection of such taxes and these provisions meet the requirements of
the Statute and Article XI, Sections 5 and 7 of the Constitution of the
State of Texas.
As required by the Statute authorizing the Certificate of Obligation
at the time advertisement for bids was made concerning the equipment to be
purchased, a provision was made indicating that the successful bidder needed
to elect if the successful bidder would accept the Certificates of Obligation
or endorse same over in accordance with arrangements made by the City of
Huntsville, Texas. In this connection, the successful bidder elected to
endorse these obligations to the First National Bank of Huntsville.
1'
• •
First National Bank of Huntsville
Page 2
Based upon the above, it is my opinion that this Certificate of
Obligation is a legal, valid and binding obligation of the City of
Huntsville, Texas, and the interest and principal due thereon is payable
in accordance with the Certificate of Obligation from the budgeted funds
of the City of Huntsville. The City's issuance, execution and delivery
of the certificate is not subject to any authorization, consent or review
of any government body, public officers or regulatory authority not here-
tofore obtained. The interest on the Certificate of Obligation is exempt
from Federal income taxes under existing statutes, rulings, regulations
and court decisions.
SB:eht
Respectfully submitted,
Scott Bounds
City Attorney