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HomeMy WebLinkAbout1981-1313 - Ordinance - 07/23/1981ORDINANCE NO. 1313 AUTHORIZING THE ISSUANCE OF CITY OF COLLEGE STATION, INTEREST BEARING, LAND ACQUISITION CERTIFICATES OF OBLIGATION, IN THE TOTAL AMOUNT OF $1,581,062.50, LEVYING A TAX FOR REPAYMENT, ESTABLISHING AN INTEREST AND SINKING FUND, AND CONTAINING OTHER PROVISIONS RELATING TO SAID SUBJECT WHEREAS, the City Council of the City of College Station deems it necessary to issue Certificates of Obligation to be delivered to the seller of certain real property for the purpose of paying the City's contractual obligation for the purchase price of certain property, being approximately 1266 acres of land in Brazos County, Texas, which is to be used for a sewage treatment plant, a sanitary landfill, a public vehicle and equipment garage and warehouse, and other anticipated uses set forth in Ordinance 1311, which are public purposes and public works; 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 JULY 8, 1981 and JULY 15, 1981; and 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 two interest bearing Certificates of Obligation be issued, the first in the amount of TWO HUNDRED EIGHTY FOUR THOUSAND SIXTY TWO AND 50/100 DOLLARS ($284,062.50) and the second in the amount of ONE MILLION TWO HUNDRED NINETY SEVEN THOUSAND AND NO /100 ($1,297,000); THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS: 1. That the City's Certificates 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 the purposes indicated, and 2. That said Certificates of Obligation shall be dated July 24, 1981, shall be numbered 00002 and 00003, and shall be due and payable as follows: CERTIFICATE OF OBLIGATION 00002 3. That Certificate of Obligation No. 00002 shall bear interest at the rate of 9.25% per annum as above indicated and shall be paid according to said payment schedule. That Certificate of Obligation No. 00003 shall bear interest at the rate of 12% per annum as above indicated, and shall be paid according to said payment schedule. 4. That said Certificates of Obligation shall be issued, shall be payable, and may be redeemed prior to their 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 Certificates of Obligation Numbers 00002 and 00003, shall be, respectively substantially as follows: FORM OF CERTIFICATE No. 0 00 02 $284,062.50 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF BRAZOS 034505 $284,062.50 10YRS 9.25% r YEAR /DATE DUE PRINCIPAL INTEREST TOTAL 1 July 24, 1982 $28,406.25 $26,275.78 $54,682.03 2 July 24, 1983 $28,406.25 $23,648.20 $52 3 July 24, 1984 $28,406.25 $21,020.63 $49,426.88 4 July 24, 1985 $28,406.25 $18,393.05 $46,799.30 5 July 24, 1986 $28,406.25 $15,765.47 $44,171.72 6 July 24, 1987 $28,406.25 $13,137.89 $41,544.14 7 July 24, 1988 $28,406.25 $10,510.31 $38,916.56 8 July 24, 1989 $28,406.25 $ 7,882.73 $36,288.98 9 July 24, 1990 $28,406.25 $ 5,255.16 $33,661.41 10 July 24, 1991 $28,406.25 $ 2,627.56 $31,033.81 $284,062.50 $144,516.78 $428,579.28 CERTIFICATE OF OBLIGATION 00003 $1,297,000 7yrs /balloon 12.00% YEAR /DATE DUE PRINCIPAL INTEREST TOTAL 1 July 15, 1982 $ 173,642.36 $155.640.00 $ 329,282.36 2 July 15, 1983 $ 173,642.36 $134.802.92 $ 308.445.28 3 July 15, 1984 $ 173,642.36 $113,965.83 $ 287,608.19 4 July 15, 1985 $ 173,642.36 $ 93,128.75 $ 266,771.11 5 July 15, 1986 $ 173,642.36 $ 72,291.67 $ 245,934.03 6 July 15, 1987 $ 173,642.36 $ 51,454.58 $ 225,096.94 7 July 15, 1988 $ 255,145.84 $ 30,617.50 $ 285,763.34 $1,297,000.00 $651,901.25 $1,948,901.25 3. That Certificate of Obligation No. 00002 shall bear interest at the rate of 9.25% per annum as above indicated and shall be paid according to said payment schedule. That Certificate of Obligation No. 00003 shall bear interest at the rate of 12% per annum as above indicated, and shall be paid according to said payment schedule. 4. That said Certificates of Obligation shall be issued, shall be payable, and may be redeemed prior to their 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 Certificates of Obligation Numbers 00002 and 00003, shall be, respectively substantially as follows: FORM OF CERTIFICATE No. 0 00 02 $284,062.50 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF BRAZOS 034505 CITY OF COLLEGE STATION, TEXAS CERTIFICATE OF OBLIGATION * SERIES 1981 �+ THE CITY OF COLLEGE STATION, IN THE COUNTY OF BRAZOS, STATE OF TEXAS, promise to pay to ROBERT F. SPEARMAN AND ASSIGNS the principal amount of TWO HUNDRED EIGHTY FOUR THOUSAND SIXTY TWO AND 50/100 DOLLARS and to pay interest 9.25% per annum, to outstanding. YEAR /DATE DUE 1 July 24, 1982 2 July 24, 1983 3 July 24, 1984 4 July 24, 1985 5 July 24, 1986 6 July 24, 1987 7 July 24, 1988 8 July 24, 1989 9 July 24, 1990 10 July 24, 1991 thereon, from the date hereof, at the rate of be paid as follows while this certificate is PRINCIPAL $28,406.25 $28,406.25 $28,406.25 $28,406.25 $28,406.25 $28,406.25 $28,406.25 $28,406.25 $28,406.25 $28,406.25 $284,062.50 INTEREST $26,275.78 $23,648.20 $21,020.63 $18,393.05 $15,765.47 $13,137.89 $10,510.31 $ 7,882.73 $ 5,255.16 $ 2,627.56 $144,516.78 TOTAL $54,682.03 $52,054.45 $49,426.88 $46,799.30 $44,171.72 $41,544.14 $38,916.56 $36,288.98 $33,661.41 $31,033.81 $428,579.28 THE PRINCIPAL OF this Certificate of Obligation shall be payable to the designated payee, or subsequent holder by endorsement, assignment, or otherwise, annually in accordance with the above schedule, in lawful money of the United States of America, without exchange or collection charges to owner or holder, 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 July 24, 1981, issued in the principal amount of $284,062.50 for the purchase price of said property, which is to be used for a sewage treatment plant and other anticipated public uses, as set forth in Ordinance 1311. ON JULY 24 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 newspaper of general circulation published in the City of College Station, Texas. If such written notice of redemption is published and if due provision for such paymnent 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 be regarded as being outstanding except for the right of the owner or 08506 holder to receive the redemption price from the Finance 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 sufficiant 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 lease or sale of any surplus property not needed for public use or works, and by any other city revenues 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 services, and any claims to such revenues arising hereunder shall be secondary and inferior to claims arising from the City's revenue bonds. IN WITNESS WHEREOF, this Certificate (and the interest coupons appertaining hereto) have been signed with the signature of the Mayor of said City and countersigned 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 FORM OF CERTIFICATE No. 00003 $1,297,000.00 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF BRAZOS CITY OF COLLEGE STATION, TEXAS CERTIFICATE OF OBLIGATION SERIES 1981 THE CITY TEXAS, promise amount of OF COLLEGE STATION, IN THE COUNTY OF BRAZOS, STATE OF to pay to ROBERT F. SPEARMAN AND ASSIGNS the principal ONE MILLION TWO HUNDRED NINETY SEVEN THOUSAND AND N01100 DOLLARS and to pay interest thereon, from the date hereof, at the rate of i in 12.00% per annum, to be paid as follows while this certificate is outstanding. YEAR /DATE DUE PRINCIPAL INTEREST TOTAL 1 July 15, 1982 $ 173,642.36 $155.640.00 $ 329,282.36 2 July 15, 1983 $ 173,642.36 $134.802.92 $ 308.445.28 3 July 15, 1984 $ 173,642.36 $113,965.83 $ 287,608.19 4 July 15, 1985 $ 173,642.36 $ 93,128.75 $ 266,771.11 5 July 15, 1986 $ 173,642.36 $ 72,291.67 $ 245,934.03 6 July 15, 1987 $ 173,642.36 $ 51,454.58 $ 225,096.94 7 July 15, 1988 $ 255,145.84 $ 30,617.50 $ 285,763.34 $1,297,000.00 $651,901.25 $1,948,901.25 THE PRINCIPAL OF this Certificate of Obligation shall be payable to the designated payee, or subsequent holder by endorsement assignment, or otherwise, annually in accordance with the above schedule, in lawful money of the United States of America, without exchange of collection charges to the owner or holder, 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 July 24, 1981, issued in the principal amount of $1,297,000.00 for the purchase price of said property, which is to be used for a sewage treatment plant and other anticipated public uses, as set forth in Ordinance 1311. ON JULY 15, 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 newspaper of general circulation 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 be regarded as being outstanding except for the right of the owner or holder to receive the redemption price from the Finance 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, sufficient 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 lease or sale of any surplus property not needed for public use or works, and by any other city revenues 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 services, and any claims to such revenues arising hereunder shall be secondary and inferior to claims arising from the City's revenue bonds. IN WITNESS WHEREOF, this Certificate (and the interest coupons appertaining hereto) have been signed with the signature of the Mayor of said City and countersigned 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 Obigation. 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 shall annually levy, assess, and collect in due time, form, and manner, an at the same time other City taxes are assessed, levied and collected, an ad valorem tax upon all taxable property in the City sufficient to raise and produce the money required to pay the interest on said Certificate of Obligation as such principal matures and to create a sinking fund of not less than 2% of the principal amount then outstanding, or of not less than the amount required to pay the principal payable, whichever is greater; and said tax shall be based on the latest approved tax rolls of said City, with full allowances being made for tax delinquencies and the cost of tax collection. Said 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 sale or lease of any surplus property not needed for public uses or works and other revenues of the City remaining after payment of all operation and 03509 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 services, (and provided that any claims to revenues hereunder shall be secondary and inferior to claims arising under any of said revenue bonds) 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 Surplus 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 Attorney of said City is hereby authorized to have control of 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 covenants 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 Certificates of Obligation are to be payable to and delivered to ROBERT F. SPEARMAN AND ASSIGNS. 12. That this Ordinance was read once and became effective upon passage. PASSED, APPROVED, AND ADOPTED THIS THE L f A Day of JULY, 1981. APPROVED: ATTEST: .!Z Gary Halter, a Or � 03510 Glenn Schroeder, City Secretary ORDINANCE NO. 1313 APPROVED AS TO FORM: LOWELL F. DENTON, CITY ATTORNEY owu