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HomeMy WebLinkAboutO-1980-1241 . . . . ORDINANCE NO. la.t// AN ORDINANCE AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE CITY'S CERTIFICATES OF OBLIGATION, SERIES 1980, IN THE AGGREGATE PRINCIPAL AMOUNT O~ $800,000, PROVIDING THE DETAILS RELATING THERETO AND DECLARING SAID ORDINANCE EFFECTIVE IMMEDIATELY UPON ITS ADOPTION. WHEREAS, pursuant to the provisions of The Certifi- cate of Obligation Act of 1971, as amended (Art. 2368a.1, V.A.T.C.S.), the City of La Porte, Texas, caused notice to be published of the City's' intention to issue up to $800,000 in aggregate principal amount of its Certificates of Obliga- tion, payable solely from ad valorem taxes, for the purpose of constructing and purchasing a public works service center; e and WHEREAS, no petition of any kind has been submitted to the City Secretary of the City of La Porte, or to any member of the City Council thereof, or to any officers of the City whatsoever protesting the issuance of Certificates of Obligation for such purpose unless the issuance thereof is approved at an election called, held and concluded in the manner provided by law for bond elections; and WHEREAS, this City Council hereby affirmatively finds and declares that the city of La Porte is fully autho- e rized and empowered to issue its Certificates of Obligation for the purpose of constructing and purchasing a public works service center; and WHEREAS, the City Council desires to authorize the issuance of Certificates of Obligation so as to obtain funds for such purpose; therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: section 1: That in order to obtain funds for the purpose of constructing and purchasing a public works service center, there shall be, and there is hereby ordered to be, e. issued under and by virtue of the Constitution and laws of the State of Texas, certificates of obligation of the City e e . of La Porte, Texas, in the total principal sum of $800,000 to be known as. "CITY OF LA PORTE, TEXAS, CERTIFICATES OF OBLIGATION, SERIES 1980." Section 2: That said certificates shall be dated November 1, 1980, shall be numbered consecutively from 1 through 160, shall be in the denomination of $5,000 each and shall mature and become due and payable serially without option of prior redemption on February 1 in each of the years and in the amounts specified in the following schedule: Year Amount Year Amount 1982 $80,000 1987 $80,000 e 1983 80,000 1988 80,000 1984 80,000 1989 80,000 1985 80,000 1990 80,000 1986 80,000 1991 80,000 Section 3: That said certificates shall bear interest from their dates until maturity at the rate of 7 3/4% per annum, with such interest to be evidenced by interest coupons payable on August 1, 1981, and semiannually thereafter on each February 1 and August 1 until the principal sum is paid in full. Section 4: The seal of said City may be impressed on each of said certificates, or in the alternative a facsimile tt of such seal may be printed on said certificates. The certificates may be manually signed by the Mayor and City Secretary, or in the alternative may be executed by the imprinted facsimile signatures of the Mayor and City Secretary of the City, and execution in the latter manner shall have the same effect as if such certificates had been signed by the Mayor and city Secretary in person by their manual signatures. Inasmuch as such certificates are required to e be registered by the Comptroller of Public Accounts for the State of Texas, only his signature (or that of a deputy designated in writing to act for the Comptroller) shall be required to be manually subscribed to said certificates in -2- . e e e. e e connection with his registration certificate to appear thereon, as hereinafter provided. Section 5: That the principal of and interest on said certificates 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 proper certificate or interest coupon, as the case may be, at Bayshore National Bank, La Porte, Texas, or at the option of the bearer, at First City Bank of La Porte, La Porte, Texas, which banks shall be the paying agents for said certificates. Section 6: The certificates, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas, and the form of interest coupons, shall respectively be in substantially the form set forth in Exhibit A attached hereto and made a part of this ordinance for all purposes. Section 7: That to provide for the payment of the interest on said certificates as it accrues and to provide a sinking fund for the redemption of said certificates at maturity or a sinking fund of 2% (whichever amount shall be greater), there shall be and there is hereby levied for the current year and each succeeding year thereafter while said certificates or interest thereon shall remain outstanding and unpaid, a sufficient tax on each one hundred dollars' valuation of taxable property in said City, adequate to pay such interest and to provide for such sinking fund, after full allowance has been made for delinquencies and costs of collection; said tax shall be assessed and collected each year and applied to the payment of said interest and to provide for such sinking fund, and same shall not be diverted to any other purpose. The taxes so levied shall be paid into a fund known as "SPECIAL CITY OF LA PORTE, TEXAS, CERTIFICATES OF OBLIGATION FUND, SERIES 1980," which is -3- 'e e e . e e hereby established for the payment of the obligations herein authorized. The Council h~reby declares its purpose and intent to provide and levy a tax legally and fully sufficient for such certificates, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax in consideration of all other outstanding obligations. Section 8: The sale of said certificates to Bayshore National Bank, La Porte, Texas, and First City Bank of La Porte, La Porte, Texas, at the price of par and accrued interest to date of delivery is hereby confirmed. Delivery of the certificates shall be made to said purchaser as soon as may be after the adoption of this ordinance, upon payment therefor in accordance with the terms of sale. Section 9: That the City hereby covenants with the purchasers and any subsequent holders of said certificates that the City will not. make any use of the proceeds of said certificates which will cause said certificates to be or become "arbitrage bonds" within the meaning of Section l03(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 l03(c) and regulations in order that said certificates will not be or become lIarbitrage bonds" thereunder. section 10: The Mayor of the City shall be and he is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas, and shall take and have charge and control of the certificates herein authorized, pending their approval by the Attorney General, registration by the Comptroller of Public Accounts, and delivery to the purchasers thereof. -4- e. e . e e e Section 11: That this Ordinance shall become effective and be in full force immediately upon and after its adoption. PASSED AND APPROVED, this the 17th day of December, 1980. ~ Mayor, Texas ATTEST: ...~~~~'S~'~.\'.. . ~ ~ ff [SEAL]- ~...: .....,. ~,> ~: ~.. .... ~ ~ -...;: ... ;. . ;,. .. -t _: -=--.. ~::~~~ ;. '+, '" ?'-:, , ,..". /' -5- ~- City of La PoJrte, . . Exhibit A e NO. UNITED STATES OF AMERICA $5,000 STATE OF TEXAS COUNTY OF HARRI S CITY OF LA PORTE, TEXAS, CERTIFICATE OF OBLIGATION, SERIES 1980 THIS IS TO CERTIFY that, FOR VALUE RECEIVED, the City of La Porte, a municipal corporation of the State of Texas, is justly indebted to and hereby obligates itself to pay to the bearer on the FIRST DAY OF FEBRUARY, 19 , the sum of FIVE THOUSAND DOLLARS e with interest thereon from the date hereof to maturity at the rate of SEVEN AND THREE-FOURTHS PER CENTUM (7 3/4%) per annum, evidenced by interest coupons payable on August 1, 1981, and semiannually thereafter on February 1. and August 1 of each year while this certificate is outstanding. The principal of this certificate and the interest coupons attached hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collec- tion charges to the bearer, upon presentation and surrender of this certificate or proper interest coupon at Bayshore National Bank, La Porte, Texas, or, at the option of the bearer, at First City Bank of La Porte, La Porte, Texas, which banks shall be the paying agents for this series of certificates of obligation. e THIS CERTIFICATE is one of a. series of certificates of obligation dated November 1, 1980, issued in the aggregate principal amount of $800,000 and together with other certifi- cates of said series, is issued to obtain funds for the purpose of constructing and purchasing a public works service center, under and by virtue of the Constitution and laws of the State of Texas, including The Certificate of Obligation Act of 1971, as amended, and in accordance with an ordinance duly passed and adopted by the Council of the City of La Porte, Texas, and of record in the minutes of said Council. IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED that all acts, conditions or things required to be done precedent to and in the issuance of this certificate and the series of which it is a part have been properly done, have happened and been performed in regular and due time, form and manner as required by the Constitution and laws of the State of Texas and the ordinance authorizing this series of certificates; that the total indebtedness of the City, including this certificate and the series of which it is a part, does not exceed any constitutional or statutory limita- tion, and that a sufficient tax to pay the principal of and interest on this certificate and of the series of which it is a part at their'respective maturities has been levied and will continue to be levied and collected and applied in payment thereof. e IN TESTIMONY WHEREOF, this certificate and the interest coupons attached hereto have been signed by the imprinted or lithographed facsimile signature of the Mayor . e e e . e of said City and countersigned by the imprinted or litho- graphed facsimile signature of the City Secretary, and the official seal of said -City has been duly printed or litho- graphed on this certificate, all as of the 1st day of November, 1980. ~ -=-) r- Mayor, City of La Porte, Texas COUNTERSIGNED: -2- . e e . ... . . . . . COMPTROLLER'S REGISTRATION CERTIFICATE ~ ~ ~ REGISTER NO. I HEREBY CERTIFY that there is on file and of record in my office a certificate of the Attorney General of the State of Texas, to the effect that this certificate of obligation has been examined by him as required by law and that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas, -and that it is a valid and binding obligation upon said City of La Porte, Texas, and said certificate of obligation has this day been registered by me. ", WITNESS MY HAND AND SEAL OF OFFICE at, Austin, Texas, Comptroller of Public Accounts of the State of Texas * * * * * * $ On ,19 ,the City of La Porte, in the County of Harris, 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 the Bayshore National Bank, La Porte, Texas, or, at the option of the bearer, at First City Bank of La Porte, La Porte, Texas, said amount being interest due that day on.the certificate of obligation bearing the number hereinafter designated, of that issue of the City of La Porte, Texas, Certificates of Obligation, Series 1980, dated November 1, 1980. Certificate No~ Mayor, City Secretary -3-