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ORD 1994-10 - Claim - Delivery CO - Street Sweeper 02-08-1994c• (ey.# -. 4 ()I) 1. ORDINANCE NO. 94 -10 AN ORDINANCE APPROVING CLAIM AND DELIVERY OF CERTIFICATES OF OBLIGATION FOR ONE (1) SELF PROPELLED STREET SWEEPER; AND CONTAINING OTHER PROVISIONS RELATED HERETO. WHEREAS the City Council of the City of Huntsville, Texas (City), by Ordinance No. 93- 33, found that it was advisable for the City to purchase a self propelled street sweeper and that Certificates of Obligation be issued by the City for all or any part of the cost of same; and WHEREAS WHEREAS WHEREAS the notice for the action to issue Certificates of Obligation was published at the times and in the manner required by law; and the City awarded a contract to R. B. Everett in the amount of $22,800 as the lowest and best bid for the purchase of the self propelled street sweeper; and the City Council wishes to authorize payment thereof and delivery of a Certificate of Obligation. THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that: SECTION 1: SECTION 2: SECTION 3: SECTION 4: There is now due and owing to R. B. Everett the sum of $22,800. The Certificate of Obligation herein authorized to be delivered shall bear interest at the rate of 6.0% per annum from date of initial delivery shown on the face of such certificate. There shall be executed and delivered to R. B. Everett a City of Huntsville, Texas, Equipment Acquisition Certificate of Obligation, dated February 9, 1994. The Mayor, City Secretary and other appropriate City officials are hereby authorized and directed to deliver the Certificate and to do any and all things necessary or convenient to carry out the terms of this ordinance. INTRODUCED, READ AND PASSED by the unanimous vote of the City Council of the City of Huntsville, on this the 8th day of February, 1994. CITY OF HUNTSVILLE, TEXAS ATTEST: anna Welter, City Secretary APPROVED AS TO FORM: Scott B unds, City Attomey . H. Hodges, ayor City of Huntsvi e " TO BUILD AND SERVE A BETTER COMMUNITY " HUNTSVILLE, TEXAS 77340 1212 AVE. M (409) 295-6471 February 23, 1994 Mrs. Doris Niederhofer P. O. Box 1195 Huntsville, Texas 77340 RE: Certificate of Obligation issued by the City of Huntsville in the amount of $22,800 Dear Mrs. Niederhofer: 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 $22,800, bearing interest at a rate therein specified and payable as provided in the Certificate. This Certificate of Obligation is issued pursuant to the terms of Texas Local Government Code, Chapter 271, and is for the purpose of financing the acquisition of a self propelled street sweeper (road broom). This Certificate was authorized by ordinance dated February 8, 1994, 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. 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 Certificate 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 Doris Niederhofer. February 23, 1994 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 heretofore obtained. The interest on the Certificate of Obligation is (1) excludable from gross income for federal income tax purposes under Section 103(a) of the Internal Revenue Code of 1986, as amended, and existing regulations, rulings, and court decisions, and (2) does not constitute an individual or corporate altemative minimum tax preference item. Interest paid on tax-exempt obligations may, however, affect the alternative minimum taxable income of certain corporations. The accrual or receipt of such interest could therefore affect the federal income tax liability of the recipient, depending upon the recipient's particular tax status and other factors. Respectfully submitted, 1.W Scott Bounds City Attorney SB/dlw Dated: January 18, 1994 Issued: February 9, 1994 Amount: $22,800 Register No. 94-02 UNITED STATES OF AMERICA COUNTY OF WALKER STATE OF TEXAS 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 indicated the total sum of Twenty Two Thousand Eight Hundred And No /100 Dollars ($22,800) in lawful money of the United States of America, with interest thereon from date of issue until paid at the rate of 6.0% per cent per annum, payable on February 9, 1995, and annually thereafter on the 9th day of February of each and every year as hereinafter provided until such 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 collection 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 1995 $ 5,700.00 $1,368.00 $ 7,068.00 1996 5,700.00 1,026.00 6,726.00 1997 5,700.00 684.00 6,384.00 1998 5.700.00 342.00 6,042.00 $22,800.00 $ 3,420.00 $26,220.00 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 principal 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. This Certificate shall be registered as to principal and interest in the owner's name upon books of the City to be kept for that purpose at the office of the Finance Director of the City, the registrar, such registration to be noted hereon. After such registration, no transfer of this Certificate shall be valid unless made on the City's books at the request of the registered owner hereof, or his duly authorized agent, and similarly noted hereon. 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 9th day of February, 1994. DATE OF INITIAL DELIVERY OF THIS CERTIFICATE: „la.- / ATTEST: /996L ASSIGNMENT AND TRANSFER W. H. Hodges, May Full consideration therefor being hereby acknowledged, this Certificate of Obligation was delivered to R. B. Everett, the original holder, on this the day of if r , 1994, and by it hereby assigned and transferred to Doris Niederhofer. R. B. EVERETT CERTIFICATE OF REGISTRATION IT IS HEREBY CERTIFIED that I have this day registered this Certificate as to principal in the name of the holder as indicated in the registration blank below, on the books kept by me for such purpose. The principal of and interest on this Certificate shall be payable only to the registered holder named in the below registration blanks. Name of Registered Holder Signature Date of Finance Director Registration (Registrar) Doris Niederhofer 2 -09-94