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ORD 1993-14 - C.O. - Authorize Issuance - Road Repair Unit 04-20-1993ORDINANCE NO 93 -14 AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION CERTIFICATE OF OBLIGATION FOR A ROAD REPAIR UNIT IN THE AMOUNT OF $15,609; AND CONTAINING OTHER PROVISIONS RELATED TO THE SUBJECT. WHEREAS the City Council of the City of Huntsville received competitive bids for a road repair unit, and awarded a contract for the purchase of such equipment in accordance with Texas Local Government Code Chapter 271 to Texas High Roller, in the amount of $15,609; and WHEREAS the City published notice of intention to issue a Certificate 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 the road repair unit at an amount not to exceed $20,000; and WHEREAS the notice of intention to issue a Certificate of Obligation was published at the times and in the manner required by Texas Local Government Code Chapter 271 on March 26 and April 2, 1993. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS; that: Section 1: The City Council ratifies the contract with Texas High Roller to purchase the road repair unit and hereby confirms the purchase of such equipment. Section 2: An 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 authorized to be issued and delivered in the principal amount of $15,609 for the purpose of acquiring the road repair unit for use by the City, and the Mayor and City Secretary shall have joint control of the certificate for the purpose of delivering same to the owner in accordance herewith. Section 3: The Certificate shall be dated April 20, 1993, 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: Dated: April 20, 1993 Amount: $15,609 Issued: Register No. 93 -03 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 Fifteen Thousand Six Hundred Nine And No /100 Dollars ($15,609) 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 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 1994 $ $ $ 1995 1996 1997 1998 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 _ day of , 1993. DATE OF INITIAL DELIVERY OF THIS CERTIFICATE: W. H. Hodges, Mayor ATTEST: Danna Welter, City Secretary ASSIGNMENT AND TRANSFER Full consideration therefor being hereby acknowledged, this Certificate of Obligation was delivered to Texas High Roller, the original holder, on this the day of , 1993, and by it hereby assigned and transferred to TEXAS HIGH ROLLER By 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 of Date of Finance Director Registration (Registrar) Section 4: Section 5: Section 6: While the 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 the City sufficient to pay the current interest thereon and to create sinking fund sufficient to pay each installment of principal as same becomes due, or a sinking fund of 2 %, whichever is greater; and in order to pay the interest on the 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 the taxable property in the City for the current year, and the same shall be assessed and collected and applied to the purposes named; and while the 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 the 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 the tax shall each year be assessed and collected and applied to the payment of the principal of and interest on the 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 the 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. The Mayor and City Secretary are hereby empowered and directed to proceed with the delivery of the Certificate of Obligation and the closing of the 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. The Certificate 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 717k -2, Texas Revised Civil Statutes, as amended, until maturity, or upon prepayment. At the time the Certificate of Obligation is issued the Certificate shall be registered and recorded by such register number on the books of said City to the registered owner thereof. Section 7: This ordinance shall take effect and be in force from and after its passage and approval. Section 8: Notwithstanding any other provision in the within ordinance to the contrary, as to the authorized issuing date for the Certificate of Obligation, the certificate shall be dated and bear interest from date of delivery and execution by the Mayor and City Secretary. PASSED AND APPROVED this 20th day of April, 1993. CITY OF HUNTSVILLE, TEXAS . H. Hodges, Mayor ATTEST: Danna Welter, City Secretary APPR Scot' Boun e s, City Attorney