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ORDINANCE NO. 1296
AUTHORIZING THE ISSUANCE OF INTEREST
BEARING CERTIFICATES OF OBLIGATION
WHEREAS, the City Council of the City of College Station deems it advisable to
issue a Certificate of Obligation to be delivered to the sellers of certain real
property for the purpose of paying a portion of the City's contractual obligations
for the purchase price of said property, which is to be used for a sanitary-landfill
site; and
WHEREAS, the Certificate of Obligation hereinafter authorized and designated
is to be issued and delivered pursuant to Article 2368a.1, V.A.T.C.S.; and
WHEREAS, the notice required by said statute has been duly published in the
Bryan /College Station Eagle, which is a newspaper of general circulation in said
City, in its issues of March 10, 1981 and March 17, 1981.
WHEREAS, the City received no petition from the qualified electors of the
City protesting the issuance of such Certificate of Obligation; and
WHEREAS, it is considered to be to the best interest of the City, that one
interest bearing Certificate of Obligation be issued, in the amount of $208,000,
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS:
1. That the City's Certificate of Obligation, to be called the "CITY OF COLLEGE
STATION, TEXAS CERTIFICATE OF OBLIGATION ", shall be issued under and by virtue
of the Constitution and laws of the State of Texas, for the purpose of paying
a portion of the City's contractual obligations for the purchase price of said
property, which is to be used for sanitary landfill site; and
2. That said Certificate of Obligation shall be dated June 8, 1981, shall
be numbered 00001 and shall be due and payable as follows:
CERTIFICATE OF OBLIGATION
LANDFILL LAND
$208,000 - 5 yrs. @ 5.97%
YEAR PRINCIPAL INTEREST TOTAL
1 $41,600
$12,418
$54,018
2 41,600
9,934
51,534
3 41,600
7,451
49,051
4 41,600
4,967
46,567
5 41,600
2,484
44,084
$208,000
$37,254
$245,254
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3. That said Certificate of Obligation shall bear interest at the rate of
5.97% per annum as above indicated and to be paid according tosaid payment
schedule.
4. That said Certificate of Obligation shall be issued, shall be payable,
may be redeemed prior to its scheduled maturities, shall have the characteristics
and shall be signed and executed (and said Certificate shall be sealed), all
as provided, and in the manner indicated, in the FORM OF CERTIFICATE set forth
in this Ordinance.
5. That the form of said Certificate of Obligation, shall be, respectively
substantially as follows:
FORM OF CERTIFICATE
No. 00001
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF BRAZOS
CITY OF COLLEGE STATION, TEXAS
CERTIFICATE OF OBLIGATION
SERIES 1981
$208,000
THE CITY OF COLLEGE STATION, IN THE COUNTY OF BRAZOS, STATE OF TEXAS, promises
to pay to bearer hereof the principal amount of
TWO HUNDRED EIGHT THOUSAND DOLLARS
and to pay interest thereon, from the date hereof, at the rate of 5.97% per annum,
to be paid as follows while this certificate is outstanding.
YEAR
PRINCIPAL
INTEREST
TOTAL
1
$41,600
$12,418
$54,018
2
41,600
9,934
51,534
3
41,600
7,451
49,051
4
41,600
4,967
46,567
5
41,600
2,484
44,084
$208,000
$37,254
$245,254
THE PRINCIPAL OF this Certificate of Obligation shall be payable to bearer
annually in accordance with the above schedule, in lawful money of the United
States of America, without exchange of collection charges to the bearer, the
final payment to be upon presentation and surrender of this Certificate of
Obligation to the Finance Director.
THIS CERTIFICATE OF OBLIGATION is dated as of June 8, 1981, issued in the
principal amount of $208,000 for the purpose of paying a portion of the City's
contractual obligations for the purchase price of said property, which is to be
used for a sanitary landfill site.
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ORDINANCE NO. 1296
ON JUNE 8, 1982, or on any interest payment date thereafter, this Certificate
of Obligation may be redeemed prior to its scheduled maturities, at the option
of said City, in whole or in part, for the principal amount thereof and accrued
interest thereon to the date fixed for redemption. At least thirty days prior
to the date fixed for any such redemption said City shall cause a written notice
of such redemption to be published at least once in a publication published in
the City of College Station, Texas. If such written notice of redemption is
published and if due provision for such payment is made, all as provided above,
the Certificate of Obligation which is to be so redeemed thereby automatically
shall be redeemed prior to its scheduled maturities, and it shall not bear interest
after the date fixed for redemption, and it shall not be regarded as being outstand-
ing except for the right of the bearer to receive the redemption price from the Fin-
ance Director out of the funds provided for such payment.
IT IS HEREBY certified, recited and covenanted that this Certificate of
Obligation has been duly and validly authorized, issued and delivered; and that
all acts, conditions, and things required or proper to be performed, exist and be
done precedent to or in the authorization, issuance and delivery of this Certificate
of Obligation have been performed, existed and been done in accordance with law;
that this Certificate of Obligation is a general obligation of said City, issued
on the full faith and credit thereof; and that annual ad valorem taxes, suffucient
to provide for-the payment of the interest on and principal of this Certificate
of Obligation, as such interest comes due and such principal matures, have been
levied and ordered to be levied against all taxable property in said City, and have
been pledged irrevocably for such payment,within the limit prescribed by law and
that this Certificate of Obligation is additionally secured by and payable from
the revenues of the City's sanitation services remaining after payment of all
operation and maintenance expenses thereof and all debt service, reserve and other
requirements in connection with all of the City's revenue bonds (now or hereafter
outstanding) which are payable from all or any part of the Net Revenues of the City's
sanitation services.
IN WITNESS WHEREOF, this Certificate and the interest coupons appertaining
hereto have been signed with the signature of the Mayor of said City and counter-
signed with the signature of the City Secretary of said City, and the official
seal of said City has been duly impressed on this Certificate.
CITY SECRETARY MAYOR
6. That the General Debt Service Fund of the City shall be the Fund used
for paying the interest and principal payable by virtue of this Certificate of
Obligation. All ad valorem taxes levied and collected for and on account of said
Certificate of Obligation shall be deposited, as collected, to the credit of
said Fund. During each year while any Certificate is outstanding and unpaid,
the City Council of said City shall compute and ascertain a rate and amount of
ad valorem tax which will be sufficient to raise and produce the money required
to pay the interest on said Certificate of Obligation as such principal matures
(but never less than 2% of the original amount of said Certificate of Obligation as
a sinking fund each year); and said tax shall be based on the latest approved tax
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ORDINANCE NO. 1296
rolls of said City, with full allowances being made for tax delinquencies
and the cost of tax collection. Said rate and amount of ad valorem tax is hereby
levied, and is hereby ordered to be levied, against all taxable property in
said City, for each year while any of said Certificate of Obligation or interest
coupons appertaining thereto are outstanding and unpaid, and said tax shall be
assessed and collected each such year and deposited to the credit of the aforesaid
Fund. Said ad valorem taxes sufficient to provide for the payment of the interest
on and principal of such Certificate of Obligation, as such interest comes due and
such principal matures, are hereby pledged irrevocably for such payment, within the
limit prescribed by law.
7. That said Certificate of Obligation additionally shall be payable from
and secured by the revenues of the City's sanitation services remaining after payment
of all operation and maintenance expenses thereof, and all debt service, reserve
and other requirements in connection with all of the City's revenue bonds (now or
hereafter outstanding) which are payable from and secured by a first lien on all
or any part of the net revenues of the City's sanitation services, with the aforesaid
remaining revenues being hereinafter called "Surplus Revenues ". The City shall deposit
all Surplus Revenues to the credit of the Fund named in Section 6. Notwithstanding
the requirements of Section 6, if Surplus Revenues are actually on deposit in the
said Fund in advance of the time when ad valorem taxes are scheduled to be levied
for any year, then the amount of taxes which otherwise would have been required
to be levied pursuant to Section 6 may be reduced to the extent and by the amount
of the Suplus Revenues then on deposit in the said Fund.
8. That the Mayor and the Finance Director are hereby ordered to do any and
all things necessary to accomplish the transfer of monies to the Fund of this issue
in ample time to pay such items of principal and interest.
9. That the City Manager of said City is hereby authorized to have control
of said Certificate of Obligation and all necessary records and proceedings
pertaining to said Certificate of Obligation pending its delivery.
10. That the City covenants to and with the purchasers of the Certificate
of Obligation that it will make no use of the proceeds of the Certificate of
Obligation which, if such use had been reasonably expected on the date of delivery
of the Certificate of Obligation to and payment for the Certificate of Obligation
by the purchasers, would have caused the meaning of Section 103(c) of the
Internal Revenue Code of 1954, as amended, or any regulations or rulings
pertaining thereto; and by this covenant the City is obligated to comply with
the requirements of the aforesaid Section 103(c) and all applicable and pertinent
Department of Treasury regulations relating to arbitrage bonds. The City further
convenants that the proceeds of the Certificate of Obligation will not otherwise
be used directly or indirectly so as to cause all or any part of the Certificate
of Obligation to be or become an arbitrage bond within the meaning of the
aforesaid Section 103(c), or any regulations or rulings pertaining thereto.
11. That the Certificate of Obligation is to be delivered to Anna Creagor
Springfield individually and as Trustee for Martha Jean Springfield and Jo Anna
r Springfield, and Henry Clark Springfield, III, and Jo Ellen Springfield.
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ORDINANCE NO. 1296
IN
12. That this Ordinance was read once and became effective upon passage.
PASSED, APPROVED, AND ADOPTED THIS THE 28th day of MAY, 1981.
APPROVED:
GARY
ATTEST:
GL XNNSCHReD 4R.0 S E RETARY
APPROVED AS TO FORM:
LOWELL F.'DE 0 rCjITY'
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6AAD ER, MA R/
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