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HomeMy WebLinkAboutO-332-4-81N �ORDINANCE NO. 332 . � AN ORDINANCE by the Cicy Council of the City of Allen, Texas, authorizing the issuance of $2,000,000 "CITY OF ALLEN, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981", dated May 1, 1981, for the purpose of making permanent public improvements and for public purposes; prescribing the form of the bonds and the form of the interest coupons; levying a continuing direct a_lnual ad/valorem tax on all taxable property within the limits of said City to pay the interest on said bonds and to create a sinking fund for the redemption thereof and providing for the assessment and collection of such taxes; enacting provisions incident and related to the subject and purpose of this ordinance; and providing an effective date. WHEREAS, pursuant to an election held in the City of Allen, Texas, on June 30, 1979, the City Council became authorized and empowered to issue general obligation bonds of the City for purposes of making permanent public improvements and public purposes hereinafter identified; and WHEREAS, $2,000,000 in principal amount of bonds approved at the aforesaid election have been heretofore issued in one installment, and this Council hereby finds and determines that a second installment of the bonds authorized at said election in the principal sum of $2,000,000 should be issued and sold at this time; a summary of the amounts and respective purposes for which such general obligation bonds may be issued, amounts heretofore issued, amounts to be issued pursuant to this ordinance and amounts remaining to be issued subsequent hereto being as follows: AND WHEREAS, the City Council hereby reserves the right to issue the remainder of the general obligation bonds authorized at aforesaid election in one or more installments and at such time or times as this Council shall determine; therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN, TEXAS: SECTION 1: That the bonds of the City of Allen, Texas, to beKnown as "CITY OF ALLEN, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981", be and the same are hereby ordered to be issued in the total principal sum of '7,qO MILLION DOLLARS ($2,000,000) for the purposes of making permanent public improvements and public purposes, to wit: $810,000 for street improvements, including drainage incidental thereto, $300,000 for providing new city hall facilities, including the acquisition of a site therefor, $90,000 for providing police facilities, including the proper holding cells and security and the acquisition of a site therefor, $100,000 for providing fire fighting facilities including the acquisition of sites therefor, $160,000 for providing library facilities including the acquisition of a site therefor, and $540,000 for acquiring or improving, or both, land for park pur- poses, under and by virtue of the Constitution and laws of the State of Texas. Amounts Amounts Amounts Heretofore Being Unissued Authorized Purpose Issued Issued Balance $3,400,000 Street Improvements $940,000 $810,000 $1,650,000 570,000 New City Hall 170,000 300,000 100,000 Facilities 120,000 Police Facilities 30,000 90,000 -0- 450,:000 Fire Fighting 290,000 100,000 60,000 Facilities 190,000 Library Facilities 30,000 160,000 -0- 1,940,000 Parks 330,000 540,000 1,070,000 210,000 Equipment Service 210,000 -0- -$- Center AND WHEREAS, the City Council hereby reserves the right to issue the remainder of the general obligation bonds authorized at aforesaid election in one or more installments and at such time or times as this Council shall determine; therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN, TEXAS: SECTION 1: That the bonds of the City of Allen, Texas, to beKnown as "CITY OF ALLEN, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981", be and the same are hereby ordered to be issued in the total principal sum of '7,qO MILLION DOLLARS ($2,000,000) for the purposes of making permanent public improvements and public purposes, to wit: $810,000 for street improvements, including drainage incidental thereto, $300,000 for providing new city hall facilities, including the acquisition of a site therefor, $90,000 for providing police facilities, including the proper holding cells and security and the acquisition of a site therefor, $100,000 for providing fire fighting facilities including the acquisition of sites therefor, $160,000 for providing library facilities including the acquisition of a site therefor, and $540,000 for acquiring or improving, or both, land for park pur- poses, under and by virtue of the Constitution and laws of the State of Texas. Ordinance No. 332 Page 2 SECTION 2: That said bonds shall be numbered consecutively from One ( jthrough Four Hundred (400); shall each be in the denomination of Five Thousand Dollars ($5,000); aggregating in principal amount TWO MILLION DOLLARS ($2,000,000); shall be dated May 1, 1981; and shall become due and payable serially, without right of prior redemption, on May 1 in each of the years in accordance with the following schedule: BOND NUMBERS (All Inclusive) MATURITY AMOUNT 1 -to 5 1982 $ 25,000 6 to 10 1983 25,000 11 to 20 1984 50,000 21 to 30 1985 50,000 31 to 45 1986 75,000 46 to 60 1987 75,000 61 to 80 1988 100,000 81 to 100 1989 100,000 101 to 120 1990 100,000 121 to 145 1991 125,000 146 to 170 1992 125,000 171 to 195 1993 125,000 196 to 225 1994 150,000 226 to 255 1995 150,000 256 to 290 1996 175,000 291 to 325 1997 175,000 326 to 360 1998 175,000 361 to 400 1999 200,000 SECTION 3: That the bonds of said series shall bear interestr�date until paid at the rate of TEN PER CENTUM (10%) per annum, such interest to be evidenced by proper coupons attached to each of said bonds, and said interest shall be payable on May 1, 1982, and semiannually thereafter on November 1 and May 1 in each year. - SECTION 4: That both principal of and interest on this issue ol bonds- shall be payable in lawful money of the United States of America, without exchange or collection charges to the owner or holder, at the MERCANTILE NATIONAL BANK AT DALLAS, Dallas, Texas, upon presentation and surrender of bonds or proper coupons. SECTION 5: That the seal of said City may be impressed on each of said onds, or in the alternative, a facsimile of such seal may be printed on the said bonds. The bonds and interest coupons appurtenant thereto may be executed by the imprinted facsimile signatures of the Mayor and City Secretary of the City, and execution in such manner shall have the same effect as if such bonds and coupons had been manually signed by the Mayor and City Secretary in person by their manual signatures. Inasmuch as such bonds are required to 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 such bonds in connection with his registration certificate to appear thereon, as hereinafter provided; all in accordance with the provisions of Article 717j-1, V.A.T.C.S. SECTION 6: That the form of said bonds shall be sub- stantiall-v as follows: N0. UNITED STATES OF AMERICA $5,000 STATE OF TEXAS COUNTY OF COLLIN CITY OF ALLEN, TEXAS, GENERAL OBLIGATION BOND, SERIES 1981 Ordinance No. 332 Page 3 The CITY OF ALLEN, a municipal corpora -,-41.37. of the State of. Texas, acknowledges itself indebted to and, FOR JALCE RECEIVED, hereby promises to pay to bearer, without rig:,t of prior redemption, the sum of FIVE THOUSnND DOLLARS ($5,000), in lawful money of the united States o -f America, on the FIRST DAY OF MAY, 19 with interest =hereon from the date hereof until paid at the rate of TEN PE CENTUM (10`/,) per annum, such interest being payable on May 1, 1:82, and semi- annually thereafter on November 1 and May 1 in each year, and evidenced by interest coupons attached hereto. BOTH PRINCIPAL AND INTEREST are payable only upon presentation and surrender of this bond and t1ne interest coupons hereto attached as the same severally become due at the MERCANTILE NATIONAL BANK AT DALLAS, Dallas, Texas, without exchange or collection charges to the owner or -nolder, and the bearer of this bond and its appurtenant in=erest coupons shall be deemed the owner thereof for purposes of receiving payment and all other purposes, and neither t^e City nor the aforementioned place of payment shall be affected by any notice to the contrary. THIS BOND is one of a series of bonds, dated May 1, 1981, numbered consecutively from One (1) through Four Hundred (400), each in the denomination of Five Thousand Dollars ($5,000), aggregating in principal amount TWO MILLION DOLL_�RS ($2,000,000), issued for purposes of making permanent public improvements and public purposes, to wit: $810,000 for street improvements, including drainage incidental thereto, $300,000 for providing new city hall facilities including the acquisition of a site therefor, $90,000 for providing police facilit=es including the proper holdin cells and security and the acquisition of a site therefor, 100,000 for providing fire f-ighting facilities including the acquisition of sites therefor, $160,000 for pro- viding library facilities including the acquisition of a site therefor and $540,000 for acquiring or improving, or both, land for park purposes, under authority of the Cons=itution and laws of the State of Texas, and pursuant to an ordinance duly passed and adopted by the City Council of the City of 2111len, Texas, and duly recorded in the Minutes of said City Council. IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED that the issuance of this bond -and the series of which i_ is a part is duly authorized by law and by an election held for that purpose within said City; that all acts, conditions and things required to be done precedent to and in the issuance of this series of bonds and of this bond, have been properly done and performed, and have happened in regular and due time, for, and manner as required by law; that sufficient and proper provision for the levy and collection of taxes has been made whit when collected, shall be appropriated exclusively to the pay.__ of this bond and the series of which it is a part, and to -e payment of the interest coupons thereto annexed as the same s^all become due; and that the total indebtedness of the City of Alen, Texas, including the entire series of bonds of which -pis bond is one, does not exceed any constitutional or statutor-: limitation. Ordinance No. 332 Page 4 IN TESTIMONY WHEREOF, the City Council of the City of Allen, Texas, in accordance With the provisions of Article 717j-1, V.A.T.C.S., has caused the seal of said City to be impressed or a facsimile thereof to be printed hereon, and this bond and its appurtenant coupons to be executed with. the imprinted facsimile signatures of the Mayor and City Secretary of said City. Mayor, City of Allen, Texas COUNTERSIGNED: City Secretary, City of Allen, Texas SECTION 7: That the form of the interest coupons attached to each of said bonds shall be substantially as follows: NO. ON THE FIRST DAY OF $ the CITY OF ALLEN, a municipal corporation in the County of Collin, State of Texas, hereby promises to pay to bearer the amount shown hereon in lawful money of the United States of. America, upon presentation and surrender of this coupon, at the MERCANTILE NATIONAL BANK AT DALLAS, Dallas, Texas, without exchange or collection charges, such amount being interest due on such date on "CITY OF ALLEN, TEXAS, GENERAL OBLIGATION BOND, SERIES 1981", dated May 1, 1981. Bond No. City Secretary Mayor SECTION 8: That the following certificate shall be printed on the back of each bond: OFFICE OF COMPTROLLER § REGISTER NO. STATE OF TF-XAS § 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 bond 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 of the City of Allen, Texas, and said bond 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 I 40 Ordinance No. 332 Page 5 SECTION 9: That to provide for the pay-ent of the debt service requirements of said bonds, being (i) the interest on said bonds and (ii) a sinking fund for their redemption 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 bonds 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 debt service requirements, full allowance being made for delinquencies and costs of collection; said tax shall be assessed and collected each year and applied to the payment of said debt service requirements, and the same shall not be diverted to any other purpose. The taxes so levied shall be paid into a fund known as "SPECIAL SERIES 1981 GENERAL OBLIGATION BOND FUND", which is hereby established for the payment of the obligations herein authorized. The Council hereby declares its purpose and intent to provide and levy a tax legally and fully sufficient for such bonds, 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 10: That the sale of the bonds herein authorized to SCHNEIDER, BERNET & HICKMAN, INC., Dallas, Texas, at the price of par and accrued interest to the date of delivery, is hereby confirmed. Delivery of the bonds shall be made to said purchasers as soon as may be after the the adoption of this ordinance, upon payment therefor in accordance with the terms of sale. SECTION 11: That the purchasers' obligation to accept delivery of the bonds herein authorized is subject to their being furnished a final opinion of Messrs. Dumas, Huguenin, Boothman and Morrow, Attorneys, Dallas, Texas, approving such bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such bonds. Printing of a true and correct copy of said opinion on the reverse side of each of such bonds, with appropriate certificate pertaining thereto, executed by the facsimile signature of the City Secretary of the City of Allen, Texas, is hereby approved and authorized. SECTION 12: That the City hereby certifies and covenants that tFe proceeds of the bonds are needed at this time to finance the costs of capital improvements -planned by the City; based on current facts, estimates and circumstances, it is reasonably expected final disbursement of the bond proceeds will occur within three years from the date of the receipt thereof by the City; it is not reasonably expected the proceeds of the bonds or moneys deposited in the interest and sinking fund created for the payment of the bonds will be used or invested in a manner that would cause the bonds to be or become "arbitrage bonds" within the meaning of Section 103(c) of the Internal Reverse Code of 1954, as amended, or any regulations or published rulings pertaining thereto; and save and except for the interest and sinking fund created 'herein no other funds or accounts have been established or pledged to the payment of the bonds. Proper officers of the City charged with the responsibility in the issuance of the bonds are hereby authorized and directed to make, execute and deliver certifications as to facts, estimates and circumstances in existence as of the date of the issue of the bonds and stating whether there are any facts, estimates or circu-tstances which *,could materially change the City's current expectations, and ithe covenants herein made and certifications herein authorized are for the benefit of the holders of the bonds and coupons -appertaining thereto and may be relied upon by the bondholders land bond counsel for the City. T Ordinance No. 332 Page 6 SECTION 13: That the Mayor of said City shall be and _s hereby authorized to take and have charge of all necessary >rders and -records pending investigation. by the Attorney General 01 the State of Texas, and shall take and have charge and control of the bonds herein authorized pending their approval by the Attorney General and their reg-.1by the Comptroller of Public Accounts. SECTION 14: That CUSIP numbers may be printed on the bonds_ herein authorized. It is expressly provided, however, that the presence or absence of CUSIP numbers on the bonds shall be of no significance or effect as regards the legality thereof and neither the City nor attorneys approving said bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed on the bonds. SECTION 15: That this ordinance shall take effect and be in fulI tor—ce immediately from and after its passage. PASSED AND APPROVED, this ATTEST: the 2nd day of April, 1981. 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