ORD CC 1980-65 - Certificate of Obligation - $38988.13ORDINANCE NO. 80-65
AN ORDINANCE AUTHORIZING ISSUANCE OF A SERIES OF TWO CITY
OF HUNTSVILLE EQUIPMENT ACQUISITION CERTIFICATES OF OBLIGATION,
SERIES 1981, IN THE TOTAL AMOUNT OF $38,988.13 FOR A DUMP
TRUCK - CAB CHASSIS AND DUMP BODY; AND CONTAINING OTHER PRO-
VISIONS RELATED TO THE SUBJECT.
WHEREAS, the City Council of the City of Huntsville received competitive bids
for a dump truck - cab chassis and body and awarded a contract for the
purchase of such equipment in accordance with Texas Revised Civil Statute
Article 2378a.1 to Moore-Henry Motors, Inc.;
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 dump truck - cab chassis and body at an amount not to
exceed $38,000.00 for the cab chassis and $12,000.00 for the dump body;
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 on NoireMber'2, 1980 and November 5, 1980; therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS:
Section 1: The City Council ratifies the contract with.Moore-Henry Motc.x.c,
Inc. to purchase a dump truck - cab chassis and dump body and hereby con
firms the purchase of such equipment.
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 author-
ized to be issued and delivered in the principal amounts of $33,393.13 and
$5,595.00 for the purpose of acquiring a dump truck - cab chassis and dump
body, respectively, for the 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 November 26, 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: November 26, 1980 Amount: $
Issued: Register No. 81-
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF WALKER
CITY OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION
CERTIFICATE 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 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 pai4,
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
1981
1982
1983
1984
1985
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 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 day of , 1980.
MORRIS I. WALLER, Mayor
ATTEST:
• ........
RUTH DE SHAW, City Secretary
FULL CONSIDERATION therefor being hereby acknowledged, this Certificate
of Obligation was delivered to MOORE HENRY MOTORS, INC., the original holder,
on this date, to-wit: . , and by it hereby transferred and
assigned to
MOORE HENRY MOTORS, INC.
By
Section 4: While said Certificate of Obligation or installment thereof is out-
standing 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 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 Certifi-
cate 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 Certi-
ficate 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 clos-
ing 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 Certificates shall bear interest from the date of initial de-
livery shown on the face of each Certificate at a rate per annum not in
excess of that prescribed by Article 717k-2, Texas Revised Civil Statutes,
as amended, until maturity, or upon prepayment.
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.
INTRODUCED, READ AND PASSED on first reading by unanimous vote of the City
Council of the City of Huntsville, Texas, on this the 25th day of November,
A. D. 1980.
ATTEST:
TH DE SHAW, ty Secretary
APPROVED AS TO FORM:
SCOTT BOUNDS, City Attorney
ORRIS I. WALLER, Mayor