HomeMy WebLinkAbout1981-1327 - Ordinance - 11/12/1981ORDINANCE NO. 1327
AUTHORIZING THE ISSUANCE OF CITY OF COLLEGE STATION, INTEREST
BEARING, PUBLIC WORKS CERTIFICATES OF OBLIGATION,
IN THE TOTAL AMOUNT OF $91,380.00, 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 Mustang Tractor and Equipment Co., supplier, to pay
the City's contractual obligation for a motor grader; 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
October 21, 1981 and November 5, 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 an interest bearing Certificate of Obligation be
issued, in the amount of NINETY ONE THOUSAND THREE HUNDRED EIGHTY
DOLLARS ($91,380.00);
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 the purposes indicated, and
2. That said Certificate of Obligation shall be dated
November 13, 1981, shall be numbered 00005, and shall be due and
payable as follows:
CERTIFICATE OF OBLIGATION 00005
$91,380.00 5YRS 9.45%
YEAR /DATE DUE PRINCIPAL INTEREST TOTAL
1 11 -13 -82 $18,276.00 $8,635.41 $26,911.41
2 11 -13 -83 $18,276.00 $6,908.33 $25,184.33
r✓ 3 11 -13 -84 $18,276.00 $5,181.25 $23,457.25
In
4 11 -13 -85 $18,276.00
5 11 -13 -86 $18,276.00
$3,454.16
$1,727.08
$91,380.00
$25,906.23
$21,730.16
$20,003.08
$117,286.23
3. That Certificate of Obligation No. 00005 shall bear
interest at the rate of 9.45% per annum as above indicated and
shall be paid according to said payment schedule.
4. That said Certificate of Obligation shall be issued,
shall be payable, and may be redeemed prior to its scheduled
maturity, 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 Number
00005, shall be, respectively substantially as follows:
FORM OF CERTIFICATE
No. 00005
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF BRAZOS
CITY OF COLLEGE STATION, TEXAS
CERTIFICATE OF OBLIGATION
SERIES 1981
91,380.00
THE CITY OF COLLEGE STATION, IN THE COUNTY OF BRAZOS, STATE
OF TEXAS, promise to pay to MUSTANG TRACTOR AND EQUIPMENT COMPANY
the principal amount of
NINETY ONE THOUSAND THREE HUNDRED EIGHTY DOLLARS
and to pay interest thereon, from the date hereof, at the rate of
9.45% per annum, to be paid as follows while this certificate is
outstanding.
YEAR /DATE DUE
PRINCIPAL
INTEREST
TOTAL
1 11 -13 -82
$18,276.00
$8,635.41
$26,911.41
2 11 -13 -83
$18,276.00
$6,908.33
$25,184.33
3 11 -13 -84
$18,276.00
$5,181.25
$23,457.25
4 11 -13 -85
$18,276.00
$3,454.16
$21,730.16
5 11 -13 -86
$18,276.00
$1,727.08
$20,003.08
$91,380.00
$25,906.23
$117,286.23
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 November 13,
1981, issued in the principal amount of $91,380.00 for the
purpose of paying for a motor grader.
ON November 13, 1982, or on any interest payment date
thereafter, this Certificate of Obligation may be redeemed prior
to its scheduled maturity, 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 maturity, 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.
IN WITNESS WHEREOF, this Certificate (and the interest
coupons appertaining hereto) has 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 as been duly impressed o4this tifica te. C Y SE ARY M
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
,r levied and collected for and on account of said Certificate of
03541
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, and 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 other revenues of the City
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 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
03SU
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 Mustang Tractor and Equipment Co.
12. That this Ordinance was read once and became effective
upon passage.
PA D, APPROVED, AND ADOPTED THIS THE 42-; Day of
GA
ATTEST:
4 NN SC HRO E DE , CITY SECRETARY
VED AS TO FORM:
L F. DENTCI V i,- TY ATTORNEY
03543