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HomeMy WebLinkAboutO-415-10-82ORDINANCE NO. 415-10-82 AN ORDINANCE by the City Council of the City of Allen, Texas, authorizing the issuance of $910,000 "CITY OF ALLEN, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982", dated November 1, 1982; prescribing the form of the bonds and the form of the interest # coupons; levying a continuing direct annual 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 redemp- tion thereof and providing for the assessment and collection of taxes; enacting provisions incident and related to the subject and purpose of this ordinance; and providing an effective date. WHEREAS, the City Council of the City of Allen, Texas, hereby finds and determines that general obligation bonds of the City in the total principal amount of $910,000 should be issued and sold at this time; such general obligation bonds having been approved and authorized to be issued at an election held June 30, 1979, and a summary of the unissued general obligation bonds approved at said election, the respective authorized purposes and amounts authorized to be issued therefor, amounts previously issued and being issued pursuant to this ordinance and amounts remaining to be issued from such voted authorization subsequent to the date hereof being as follows: Amount Purpose Authorized Street Imp. $3,400,000 New City Hall Facilities 570,000 Fire Fighting Facilities 450,000 Parks 1,940,000 Amounts Amounts Heretofore Being Unissued Issued Issued Amount $1,750,000 $610,000 $1,040,000 470,000 35,000 65,000 390,000 15,000 45,000 8701000 2509000 820,000 AND WHEREAS, the City Council hereby reserves the right to issue the balance of general obligation bonds approved at the aforesaid election in one or more installments or series at such time or times as the Council in its sole discretion shall determine; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN, TEXAS: SECTION 1: That the bonds of said City, to be known as "CITY OF ALLEN, TEXAS, GENERAL OBLIGATION BONDS, SERIES 198211, be and the same are hereby ordered to be issued in the principal sum of NINE HUNDRED TEN THOUSAND DOLLARS ($910,000) for the purpose of making permanent public improvements and public purposes, to wit: $610,000 for street improvements, including drainage incidental thereto, $250,000 for acquiring or improving, or both, land for park purposes, $35,000 for providing new city hall facilities, including the acquisition of a site therefor and $15,000 for providing fire fighting facilities, including the acquisition of sites therefor; under and by virtue of the Constitution and laws of the State of Texas. SECTION 2: That said bonds shall be dated November 1, 1982; shall be numbered consecutively from One (1) through One Hundred Eighty -Two (182); shall each be in the denomination I ORDINANCE NO. 415-10-82 of Five Thousand Dollars ($5,000), and shall become due and payable serially, without right of prior redemption, on November 1 in each of the years and bear interest at the per annum rates in accordance with the following schedule: BOND NUMBERS (All Inclusive) MATURITY AMOUNT INTEREST 1 to 10 1984 $ 50,000 11.00 11 to 20 1985 50,000 11.00 21 to 35 1986 75,000 11.00 36 to 50 1987 75,000 11.00 51 to 65 1988 75,000 11.00 66 to 85 1989 100,000 9.50 86 to 105 1990 100,000 8.50 106 to 127 1991 110,000 8.75 128 to 152 1992 125,000 9.00 153 to 182 1993 150,000 9.25 SECTION 3: That said bonds shall bear interest from date until paid at the per annum rates shown above, such interest to be evidenced by proper coupons attached to each of said bonds and said interest shall be payable on November 1, 1983, and semiannually thereafter on May 1 and November 1 in each year. SECTION 4: That both principal of and interest on this issue of bonds shall be payable in lawful money of the United States of America, without exchange or collection charges to the owner or holder, at 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 bonds, or in the alternative, a facsimile of such seal may be printed on 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 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- stantially as follows: NO. UNITED STATES OF AMERICA $5,000 STATE OF TEXAS COUNTY OF COLLIN CITY OF ALLEN, TEXAS GENERAL OBLIGATION BOND, SERIES 1982 The CITY OF ALLEN, a municipal corporation of the State of Texas, acknowledges itself indebted to and, FOR VALUE RECEIVED, hereby promises to pay to the bearer hereof, without right of redemption, the principal sum of FIVE THOUSAND DOLLARS -2- ORDINANCE NO. 415-10-82 ($5,000), in lawful money of the United States of America, on the FIRST DAY OF NOVEMBER, , with interest thereon from the date hereof until paid at the rate of PER CENT ( %) per annum, such interest being payable on November 1, 1983, 'and semiannually thereafter on May 1 and November 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 the interest coupons hereto attached as the same severally become due at MERCANTILE NATIONAL BANK AT DALLAS, Dallas, Texas, without exchange or collection charges to the owner or holder, and the bearer of this bond and its appurtenant interest coupons shall be deemed the owner thereof for purposes of receiving payment and all other purposes, and neither the 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 November 1, 1982, numbered consecutively from One (1) through One Hundred Eighty -Two (182), each in the denomination of Five Thousand Dollars ($5,000), aggregating in principal amount NINE HUNDRED TEN THOUSAND DOLLARS ($910,000), issued for the purpose of making permanent public improvements and public purposes, to wit: $610,000 for street improvements, including drainage incidental thereto, $250,000 for acquiring or improving, or both, land for park purposes, $35,000 for providing new city hall facilities, including the acquisition of a site therefor and $15,000 for providing fire fighting facilities, including the acquisition of sites therefor, under authority of the Constitution and laws of the State of Texas, and pursuant to an ordinance duly adopted by the City Council of the City of Allen, 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 it is a part is duly authorized by law and by an election held for that purpose in 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, form and manner as required by law; that sufficient and proper provision has been made for the levying and collection of taxes, which, when collected, shall be appropri- ated exclusively to the payment of this bond and the series of which it is a part, and to the payment of the interest coupons thereto annexed, as the same shall become due; and that the total indebtedness of the City of Allen, Texas, including the entire series of bonds of which this bond is one, does not exceed any constitutional or statutory limitation. 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 the City to be impressed or a facsimile thereof to be printed hereon, and this bond and its appurtenant coupons to be executed by the imprinted facsimile signatures of the Mayor and City Secretary of said City. COUNTERSIGNED: City Secretary, City of Allen, Texas -3- Mayor, City of Allen, Texas ORDINANCE NO. 415-10-82 SECTION 7: That the form of 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 198211, dated November 1, 1982, 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 TEXAS 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 SECTION 9: That to provide for the payment of the debt service requirements on 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 delin- quencies 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 1982 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 -4- ORDINANCE NO. 415-10-82 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 indebtedness. PROVIDED, HOWEVER, to pay the installment of interest to become due on the bonds on November 1, 1983, the City has current funds legally available and unappropriated for any other purposes, and, following the delivery of the bonds,` the City Treasurer shall cause to be deposited to the credit of the Special Fund hereinabove established such amount of available current funds which, together with accrued interest received from the purchaser of the bonds, will be sufficient to pay the aforesaid installments of interest to become due on the bonds. SECTION 10: That the sale of the bonds herein authorized Pre at the price of par and accrued interest to the date of delivery is hereby confirmed. Delivery of said bonds shall be made to said purchasers as soon as may be after 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 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 said 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 the 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 that 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 them to be or become "arbitrage bonds" within the meaning of Section 103(c) of the Internal Revenue 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 circumstances which would materially change the City's current expectations, and the 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 and bond counsel for the City. SECTION 13 That the Mav_or of the City shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney -5- ORDINANCE NO. 415-10-82 General of 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 registration by the Comptroller of Public Accounts. SECTION 14: That CUSIP numbers may be printed on the bonds 4erein 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 immediately from and after its passage, and it is so ordained. 1982. PASSED AND ADOPTED, this the 21st day of October, Mayor, ty of Allen, Texas ATTEST: vA City Secretary City of j Alien, Texas (City Seal)