HomeMy WebLinkAboutORD 82-32 - Certificates of ObligationP,;2 - -3-2,
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ORD INALN CE
AUTHORIZING THE ISSUANCE OF INTEREST
SEARING CERTIFICATES OF OBLIGATION
THr STATE OF TEXAS a
COUNTY OF WILLIAMSON
CITY OF GEORGETOWN 9
WHEREAS, the Cite Council deems it advisable to issue
Certificates of Obligation in the amount of $750,000 for the
purpose of paying, in whole or in part, contractual obliga-
tions for improving and extending the City's Waterworks and
Sewer System, and to pay engineering, legal and fiscal fees
in connection with this project; and
WHEREAS, the Certificates of Obligation hereinafter
authorized and designated are to be issued and delivered
for cash pursuant to Article 2368a.1, V.A.T.C.S.; and
WHEREAS, the City Council has heretofore, on the 29th
day of October, 1982, passed an ordinance authorizing and
directing the city secretary to give notice of intention to
issue Certificates of Obligation; and
WHEREAS, said notice has been duly published in the
Williamson County Sun, a newspaper of general circulation in
said City, in its issues of November 4, 1982 and November
11, 1982; and
WHEREAS, the City received no petition from the quali-
fied electors of the City protesting the issuance of such
Certificates of Obligation; and
WHEREAS, it is considered to be to the best interest of
the City that said interest bearing Certificates of Obli-
gation of even denominations in the amount of 55,000 to be
issued.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
GEORGETOWN, TEXAS:
1. That the City's Certificates of Obligation, to be
called the "CITY OF GEORGETOWN, TEXAS CERTIFICATES OF
OBLIGATION, SERIES 1982-A" shall be issue under.. and by
virtue of the Constitution and laws of the State of Texas,
for the purpose of paying, in whole or in part, contractual
obligations for improving and extending the City's Water-
works and Sewer System, and to pay all or a portion of the.
engineering, legal and fiscal fees in connection with this
project.
.2. That said Certificates of Obligation shall be
dated December 1, 1982, shall be numbered consecutively from
one upward, shall be in the denomination of $5,000 each, ag-
gregating $750,000, shall become due and payable on April 1
of each of the years as follows:
YEARS ALMO UNT S
1985
$ 25400
1986
25,000
1987
30,000
1988
40,000
1989
120,000
1990
140,000
1991
175,000
'1992
195,000
3. That the Certificates of Obligation scheduled to
creature during the years, respectively, set forth shall bear
interest at the following rates per annum:
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VSA
394
maturities
1985
through
1992,
9.50%
maturities
19
through
19—,
%
maturities
19!
through
19_,
%
maturities
19—
through
19 ,
maturities
19�
through
19
maturities
19
through
19 ,
maturities
19—
through
19
:naturiti:s
19�
through
19_,
Said interest shall be evidenced by interest'couoons
shall aopertain to said Certificates of Obligation,
which shall be pavable in the manner provided and on
dates stated in the FORM OF CERTIFICATE set forth in
Ordinance.
which
and
the
this
a. That said Certificates of Obligation and interest
coupons shall be issued, shall be payable, may be redeemed
prior to their scheduled maturities, shall have the charac-
teristics and shall be signed and executed (and said Certi-
ficate 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,
including the form of Registration Certificate of the Comp-
troller of Public Accounts of the State of Texas to be
printed and endorsed on each of said Certificates, and the
form of the aforesaid interest coupons which shall appertain
and be attached initially to each of said Certificates,
shall be, respectively substantially as follows:
No.
FORM OF CERTIFICATE
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF WILLIAMSON
CITY OF GEORGETOWN, TEXAS
CERTIFICATE OF OBLIGATION
SERIES 1982-A
$5,000
ON APRIL 1, 19 , THE CITY OF GEORGETOWN, COUNTY OF
WILLIAMSON, STATE OF TEXAS, promises to pay to bearer hereof
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 on October 1, 1983, and semiannually thereafter,
while this Certificate is outstanding.
THE PRINCIPAL of this Certificate of Obligation and the
interest coupons appertaining 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 Certificate of Obligation
or proper interest coupons at the following, which shall
constitute and be defined as the "Paying Agent" for this
Series of Certificates:
�sf- �cr�►�io� / ��i � �r9P �oc�+. /. k 1s
THIS CERTIFICATE OF OBLIGATION is one of a series dated
as of December 1, 1982, issued in the principal amount of
$750,000, for the purpose of paying, in whole or in part,
contractual obligations for improving and extending the
City's Waterworks and Sewer System, and to pay all or a
portion of the engineer�nq, legal and fiscal fees in connec-
tion with this project.
O;d APRIL 1, 1935, or on any interest payment date
thereafter, any out=tanding certiricates o.: this Series may
be redeemed prior to their scheduled maturities, at the
option o: said Cite, in whole or in part, for the 'principal
amount thereof ani accrued is, --;rest 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 financial publication published in the City of New
York, N. Y. By the date fixed for any such redemption due
provision shall be made with the Paying Agent for the
payment of the principal amount of the certificates which
are to be so redeemed and accrued interest thereon to the
date fixed for redemption. If such written notice of
redemption is published and if due provision for such
payment is made, all as provided above, the certificates
which are to be so redeemed thereby automatically shall be
redeemed prior to their scheduled maturities, and they shall
not bear interest- after the date fixed for redemption, and
they shall not be regarded as being outstanding except for
the right of the bearer to receive the redemption price from
the Paying Agent out of the funcs 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; 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 per-
formed, 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
Utility System, being the City's combined Waterworks, Sewer
and Electric Light System, 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 (row or hereafter outstanding),
which are payable from all or any part of the Surplus
Revenues of the City's Utility System.
IN WITNESS WHEREOF, this Certificate and the interest
coupons appertaining hereto have been signed with the fac-
simile signature of the Mayor of said City and countersigned
with the facsimile signature of the City Secretary of said
City, and the official seal of said City has been duly
impressed, or placed in facsimile on this Certificate.
xxxxxx
City Secretary
xxxxx
Mayor
FORM OF COMPTROLLER'S REGISTRATION CERTIFICATE
'OMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER Z.O.
I hereby certify that this Certificate of Obligation
is been examined, certified as to validity and approved by
ie Attorney General of the State of Texas,.and that this
:rtificate of Obligotion has been 'registered by the
mptroller of Public Accounts of the State of Texas.
WITNESS my signature and seal this
Comptroller of Public Accounts
r
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.396
FORM OF INTEREST COUPON
NO. $
THE CITY OF GEORGETOt-M, COUNTY OF WIL.Lf, .uISON, STATE OF
TEXAS, promises to pay to bearer the amount shown on this
interest coupon in lawful money of the United States of
America, without exchange or collection charges to the
bearer hereof, unless due provision has been made for the
redemption prior to scheduled maturity of the Certificate of
Obligation to which the interest coupon appertains, upon
presentation anal sures--nder of this interest coupon at the
4% said amount being inter-
est due that day on the Cartificate of Obligation bearing
the number hereinafter designated, of that issue of CITY OF
GEORGETOWN, TEXAS CERTIFICATES OF OBLIGATION, SERIES 1982-A,
dated December 1, 1982. Certificate of Obligation No.
xxxxx. xxxxx
City Secretary Mayor
6. That a special "Interest and Sinking Fund" is
hereby created and shall be established and maintained by
the Citv at an official depository bank of said City. Said
Interest and Sinking Fund shall be kept separate and apart
from all other funds and accounts of said City, and shall be
used only for paving the interest on and principal of said
Certificates of Obligation. All ad valorem taxes levied and
collected for and on account of said Certificates of Obliga-
tion shall be deposited, as collected, to the credit of said
Interest and Sinking Fund. During each year while any of
said Certificates of Obligation or interest coupons apper
taining thereto are outstanding and unpaid, the City Council
of said Citv 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
Certificates of Obligation as such principal matures (but
never less than 2% of the original amount of said Certifi-
cates of Obligation as a sinking fund each year); 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 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 Certificates 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 or the aforesaid
Interest and Sinking Fund. Said ad valorem taxes sufficient
to provide for the payment of the interest on and principal
of said Certificates 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 Certificates of Obligation are addition-
ally secured by and shall be payable from and secured by the
revenues of the City's Utility System, remaining after
payment of all maintenance and operation 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 o= the City's Utility System,
constituting "Surplus Revenues". The City shall deposit such
Surplus Revenues which had been credited to the Certificates
of Obligation Fund, previously created to the Interest and
Sinking Fund created pursuant to Section 6, to the -extent
necessary to pay theprincipal and interest on the Certifi-
cates of Obligation.. Notwithstanding the requirements of
i
3 9'
Section 6, i= Surplus Revenues are actually on deposit in
the Interest and Sinking Fund in advance of the time when ad
valorem ta:ces 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 Surplus Revenues then on
deposit in the Interest and Sinking Fund.
S. That the Mayor and the Citv Secretary are herebv
ordered to do any and all things necessary to accomplish the
transfer of monies to the interest and Sinking Fund of this
issue in ample time to pay such items of principal and
interest.
9. That the Mayor of said City is hereby authorized to
have control of said Certificates of Obligation and all
necessary records and proceedings pertaining to said Certi-
ficates of Obligation pending their delivery and their
investigation, examination and approval by the Attorney
General of the State of Texas, and their registration by the
Comptroller of Public Accounts of the State of Texas. Upon
registration -of said Certificates said Comptroller of Public
Accounts (or a deputy designated in writing to act for said
Comptroller) shall manually sign the Comptroller's Registra-
tion Certificate printed and endorsed on each of said
Certificates of Obligation, and the seal of said Comptroller
shall be impressed or placed in facsimile, on each of said
Certificates of Obligation.
10. That the City covenants to and with the purchasers
of the Certificates of Obligation that it will make no use
of the proceeds of the Certificates of Obligation at any
time throughout the term of this issue of Certificates of
Obligation which, if such use had been reasonably expected
on the date of delivery of the Certificates of Obligation to
and payment for the Certificates of Obligation by the pur-
chasers, would have caused the Certificates of Obligation to
be arbitrage bonds within the meaning of Section 103(c) of
the Internal Revenue Code of 1954, as amended, or any regu-
lations 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 the Treasury regulations relating to arbitrage
bonds. The City further covenants that the proceeds of the
Certificates of Obligation will not otherwise- be used
directly or indirectly so as to cause all or any part of the
Certificates of Obligation to be or become arbitrage bonds
within the meaning of the aforesaid Section 103(c), or any
regulations or rulings pertaining thereto.
11. That it is hereby officially found and determined
that a case of emergency or urgent public necessity exists
which requires the holding of the meeting at which this
Ordinance is passed, such emergency or urgent public necess-
ity being that the proposed Certificates of Obligation are
required as soon as possible and without delay for necessary
and urgently needed public improvements; and that said
meeting was open to the public and public notice of the
time, place and purpose of said meeting was given, all as
required by Vernon's Ann. Civ. St., Article 6252-17.
12. That said Certificates of Obligation are hereby
sold and shall be delivered to the First Nati(.nal Bank
Georgetown, Texas A. for cash for the par
value thereof and accrued interest thereon to the date of
delivery.
13. That the fact that the City Council considers the
passage of this ordinance and the issuance of the certifi-
cates of obligation necessary for the immediate loreservation
of the public peace, health, safety and welfare, creates an
emergency and an'imperative public necessity that the rule
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requiring ordinances to be read at more than one meeting of
the City Council bafore final oajsage be suspended, and said
rule is hereby_ suspended, and that this ordinance take
affect- and be in 'orce and e=ject immediately from and atter
its c.ssage at this meeting, and it is so ordained.
PASSED AND APPROVED this
ATTEST :
City Secretary
APPROVED:
City Attorney
18th day of November, 1982.
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