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HomeMy WebLinkAbout1981-1306 - Ordinance - 06/29/1981ORDINANCE NO. 1306 ORDINANCE AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE CITY'S $1,500,000 GENERAL OBLIGATION BONDS, SERIES 1981, PROVIDING THE DETAILS RELATING THERETO AND PROVIDING THAT SAID ORDINANCE SHALL BE EFFECTIVE IMMEDIATELY UPON ITS ADOPTION WHEREAS, pursuant to an election duly called and held in the City of College Station, Texas (the "City "), on April 4, 1981, the City Council of the City was authorized to issue General Obligation Bonds of the City in the aggre- gate principal amount of $10,795,000 for the purposes named below; and WHEREAS, the City Council of the City has determined that it is necessary to issue a first installment of said bonds for the purposes and in the amounts, respectively, as follows: $1,165,000 (out of $5,760,000 authorized) for the purpose of constructing improvements to the streets of the City, leaving $4,595,000 to be issued at a later date or dates for such purpose; $240,000 (out of $1,805,000 autho- rized) for the purpose of constructing or purchasing public buildings for the City, leaving $1,565,000 to be issued at a later date or dates for such purpose; and $95,000 (out of $2,080,000 authorized) for park improvement purposes, leaving $1,985,000 to be issued at a later date or dates for such ' purpose; but also leaving $1,150,000 of bonds voted for the purchase of park land to be issued at a later date or dates; and WHEREAS, the City Council desires to proceed with the authorization, issuance and sale of said bonds; therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION: Section 1: That the coupon bonds of the City of College Station, Texas, to be known and designated as "CITY OF COLLEGE STATION, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981" (the "Bonds "), are hereby authorized to be issued in the aggregate principal amount of $1,500,000 for the purpose W446, N of making the following permanent public improvements, to -wit: $1,165,000 (out of $5,760,000 authorized) for the purpose of constructing improvements to the streets of the City, including necessary drainage in connection therewith, leaving $4,595,000 to be issued at a later date or dates for such purpose; $240,000 (out of $1,805,000 authorized) for the purpose of constructing or purchasing public buildings for the City, leaving $1,565,000 to be issued at a later date or dates for such purpose; and $95,000 (out of $2,080,000 authorized) for the purpose of improving the existing public parks in the City, leaving $1,985,000 to be issued at a later date or dates for such purpose; but also leaving $1,150,000 of bonds voted for the purchase of land for park purposes, to be issued at a later date or dates; under and by virtue of the Constitution and laws of the State of Texas and as authorized at the bond election held in the City on the 4th day of April, 1981. Section 2: That the Bonds shall be dated May 15, 1981, shall be numbered consecutively from 1 through 300, shall be in the denomination of $5,000 each, and shall mature and become due and payable serially on February 15 in each of the years and in the amounts specified in the following schedule: Year Amount Year Amount 1982 $150,000 1987 $150,000 1983 $150,000 1988 $150,000 1984 $150,000 1989 $150,000 1985 $150,000 1990 $150,000 1986 $150,000 1991 $150,000 0 R Provided, however, that the City reserves the right to redeem in whole or in part, all of the Bonds maturing in the years 1987 through 1991 on February 15, 1986, or any interest payment date thereafter by paying the principal thereof and accrued interest thereon. If less than all of the Bonds then outstanding are called for redemption, then the Bonds shall be called in inverse numerical order. Notice of such redemption shall be given in writing to University National Bank, College Station, Texas, at least -2- 0 5,7 thirty (30) days prior to the date fixed for redemption and written notice shall also be given by publishing a copy of said notice in a financial publication of general circulation in the United States one (1) time at least thirty (30) days prior to the date fixed for redemption. Any bond or bonds called for redemption, due provision for the payment of which having been timely made, shall cease to bear interest from and after the date fixed for redemption. Section 3: That the Bonds shall bear interest per annum from their date until maturity at the following rates: Year of Interest Year of Interest Maturity Rate Maturity Rate 1982 /0.7S % 1987 x.75 1983 /D•75' % 1988 1985���% 1990 9 % 1986 Q.7� 1991 ��/ 9,04 with said interest to be evidenced by interest coupons payable on February 15, 1982, and semiannually thereafter on each August 15 and February 15, until the principal sum is paid in full. Section 4: That both the principal of and interest on the Bonds shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of the Bonds or proper interest coupon, as the case may be, at University National Bank, College Station, Texas, the paying agent for the Bonds. Section 5: That each of the Bonds and interest coupons shall be signed by the imprinted or lithographed facsimile signature of the Mayor and countersigned by the imprinted or lithographed facsimile signature of the City Secretary, and the official seal of the City shall be im- pressed or imprinted or lithographed on each of the Bonds. Such facsimile signatures on the Bonds and interest coupons and said facsimile seal on the Bonds and interest coupons -3- 03458 :9 shall have the same effect as if the Mayor and City Secretary had in person and manually signed each Bond and interest coupon and as if the official seal of the City had been manually impressed upon each Bond. Section 6: That the form of the Bonds, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each Bond, and the form of interest coupons to be attached to the Bonds shall be, respectively, substan- tially as follows: (FORM OF BOND) No. k v UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF BRAZOS CITY OF COLLEGE STATION, TEXAS GENERAL OBLIGATION BOND SERIES 1981 $5,000 On February 15, , the City of College Station, in the County of Brazos, State of Texas, for value received, hereby promises to pay to bearer the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from the date hereof, at the rate of % per annum, evidenced by interest coupons payable Febru 1982, and semiannually thereafter on August 15 _ and 15 of each year while this bond is outstanding. The principal of this bond and the interest coupons attached hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this bond or proper interest coupon at University National Bank, College Station, Texas, the paying agent for this series of bonds. To PROVIDED, HOWEVER, that said City reserves the right to redeem, in whole or in part, all bonds of said series maturing in the years 1987 through 1991 on February 15, 1986, or on any interest payment date thereafter by paying the principal thereof and accrued interest thereon. If less than all of said bonds then outstanding are called for redemption, then the bonds shall be called in inverse numerical order. Notice of such redemption shall be given in writing to University National Bank, College Station, Texas, at least thirty (30) days prior to the date fixed for redemption and written notice shall also be given by publishing a copy of said notice in a financial publication of general circula- tion in the United States one (1) time at least thirty (30) days prior to the date fixed for redemption. Any bond or bonds called for redemption, due provision for the payment of which having been made, shall cease to bear interest from and after the date fixed for redemption. 03459 we N THIS BOND IS ONE OF A SERIES OF COUPON BONDS dated May 15, 1981, issued in the aggregate principal amount of $1,500,000, and, together with the other bonds of said series, is issued for the purpose of making the following permanent public improvements, to wit: $1,165,000 (out of $5,760,000 authorized) for the purpose of constructing improvements to the streets of the City, including necessary drainage in connection therewith, leaving $4,595,000 to be issued at a later date or dates for such purpose; $240,000 (out of $1,805,000 authorized) for the purpose of constructing or purchasing public buildings for the City, leaving $1,565,000 to be issued at a later date or dates for such purpose; and $95,000 (out of $2,080,000 authorized) for the purpose of improving the existing public parks in the City, leaving $1,985,000 to be issued at a later date or dates for such purpose; but also leaving $1,150,000 of bonds voted for the purchase of land for park purposes, to be issued at a later date or dates; and under and in strict conformity with the Constitution and laws of the State of Texas, particularly Chapters 1 and 7 of Title 22, Revised Civil Statutes of Texas, 1925, as amended, and by authority of a bond election held within said City on April 4, 1981, and pursuant to an ordinance lawfully adopted by the City Council of said City, which ordinance is of record in the official minutes of said City Council. IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED that the issuance of this bond, and the series of which it is a part, is duly authorized by law; that all acts, condi- tions and things necessary to be done precedent to and in the issuance of this bond and this series of bonds, in order to render the same legal, valid and binding obligations of said City, have been done, have happened, and have been performed in regular and due time, form and manner, as required by law; that due provision has been made for the payment of the principal of and interest on this bond, and the series of which it is a part, by the levy of a direct annual ad valorem tax upon all taxable property within said City sufficient for said purposes; and that the total indebted- ness of said City, including the entire series.of bonds of which this is one, does not exceed any Constitutional or statutory limitation. IN WITNESS WHEREOF, this bond and the interest coupons attached hereto have been signed by the imprinted or lithographed facsimile signature of the Mayor of said City and countersigned by the imprinted or lithographed facsimile signature of the City Secretary, and the official seal of said City has been duly impressed or printed or lithographed on this bond, all as of the 15th day of May, 1981. Mayor, City of College Station, Texas COUNTERSIGNED: City Secretary, City of College Station, Texas 03461D 1&1! (FORM OF REGISTRATION CERTIFICATE) COMPTROLLER'S REGISTRATION CERTIFICATE: Register Number I hereby certify that this bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas; and that this bond has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal this Comptroller of Public Accounts of the State of Texas (FORM OF INTEREST COUPON) No. $ On , 19 , *unless the bond to which this coupon is attached shall have been called for prior redemption as therein provided and due provision has been made for the redemption thereof,* the City of College Station, in the County of Brazos, State of Texas, promises to pay to bearer the above specified sum in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this interest coupon at University National Bank, College Station, Texas, said amount being interest due that day on the bond bearing the number hereinafter designated, of that issue of the City of College Station, Texas, General Obligation Bonds, Series 1981, dated May 15, 1981. Bond No. Mayor City Secretary ra h * The phrase between the asterisks will be deleted on all interest coupons attached to bonds maturing on or prior to February 1, 1986. Section 7: That there is hereby created a special fund to be called "CITY OF COLLEGE STATION, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981, INTEREST AND SINKING FUND," and all taxes levied, assessed, and collected for or on account of the Bonds authorized by this ordinance shall, as �W, collected, be deposited into said fund. That while the Bonds or any part of the principal or the interest thereon remain outstanding and unpaid, there is hereby levied and -6- 03461 there shall be annually assessed and collected in due time, form and manner and at the same time other City taxes are assessed, levied and collected, in each year beginning with the current year, a continuing direct annual ad valorem tax upon all taxable property in the City, sufficient to pay the current interest thereon and to create a sinking fund of not less than two per cent (2%) of the principal amount of the Bonds then outstanding or of not less than the amount required to pay the principal payable out of said tax, whichever is greater, full allowance being made for delinquencies and costs of collection, and said taxes when collected shall be applied to the principal of and interest on the Bonds and for no other purpose. Section 8: That the Mayor is hereby authorized and directed to submit, or cause to be submitted, the record of the Bonds, and the Bonds, to the Attorney General of the State of Texas for examination and approval and thereafter cause the Bonds to be registered by the Comptroller of Public Accounts of the State of Texas. Upon said registra- tion of the Bonds, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate prescribed herein to be printed and endorsed on each Bond, and the seal of said Comptroller shall be impressed or printed or lithographed on each of the Bonds. Section 9: That the City hereby covenants with the purchasers and any subsequent holders of the Bonds that the City will not make any use of the proceeds of the Bonds which will cause the Bonds to be or become arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations promulgated thereunder, and that the City will otherwise comply with the pertinent provisions of said Section 103(c) and regulations -7- 03402 in order that the Bonds will not be or become arbitrage bonds thereunder. Section 10: That public advertisement for the sale of the Bonds having been made and bids to purchase the Bonds having been received pursuant thereto, it is hereby found and declared that the bid submitted by rt?st is the best bid received; and that the sale of such bonds to the named best bidder, at a price equal to the principal amount of such bonds plus accrued interest thereon from the date thereof to the date of actual delivery, plus a cash premium of $ — — subject to the unqualified approving opinion, as to the legality of said bonds, of the Attorney General of the State of Texas and Baker & Botts, Houston, Texas, market attorneys, is hereby authorized, ratified, approved and confirmed. When said bonds have been approved by the said Attorney General and registered by the Comptroller of Public Accounts of the State of Texas, they shall be delivered to the purchaser upon receipt of the full purchase price. The Mayor, City Secretary and other appropriate officers of the City are authorized and directed to perform all acts necessary and /or convenient to carry out the terms of this ordinance. Section 11: That this Ordinance shall be effective immediately upon its adoption. PASSED AND APPROVED on June 29, 1981. Mayo C` 6i College Stati Texas ATTEY/ ZI ,