HomeMy WebLinkAboutORD 87-26 ORDINANCE NO.
ENTITLED AN ORDINANCE AUTHORIZING THE CITY
MANAGER TO EXECUTE AN UNDERTAKING AGREEMENT
TO BE USED IN THE WITHDRAWAL OF FUNDS FROM
THE SETTLEMENT OF PENDING LITIGATION WITH
FIDATA CORPORATION AND PROVIDING FOR THE
LEVYING AND COLLECTING OF A SUFFICIENT TAX TO
PAY THE INTEREST ON SUCH OBLIGATIONS INCURRED
AND TO PROVIDE A SINKING FUND; AND PROVIDING
FOR SEVERABILITY.
WHEREAS, in order to receive its court-approved
distribution from the settlement of the pending litigation with
Fidata Corporation at the earliest possible date, the city must
execute an agreement to provide for the repayment of such monies
plus interest in the event such court-approved orders are
reversed, materially modified or vacated after any appeal or
certiorari; and,
WHEREAS, in order to assure the legal sufficiency of
this transaction, the city must levy a sufficient tax to provide
for repayment of the contingent liability associated with the
agreement;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT:
Section 1 .
That the City Manager be, and he is hereby, authorized
to sign, in behalf of the City of Beaumont, the agreement
substantially in the form attached hereto as Exhibit "A" and made
a part hereof for all purposes.
D - ��-a6 41-21-,r7
Section 2.
That the City Council shall, for each year that the
agreement herein authorized is in effect, compute and ascertain
the rate and amount of ad valorem tax, if any, which will be
sufficient to provide the money required to pay any sums which
may be or become due during any such year together with interest
thereon, because of the agreement herein authorized. Said rate
and amount of ad valorem tax is hereby ordered to be 'Levied and
is hereby levied against all taxable property in the City of
Beaumont for each year such agreement is in force and effect and
said ad valorem tax shall be assessed and collected each such
year until all the obligations herein incurred shall have been
discharged.
Section 3.
That if any section, subsection, sentence, clause or
phrase of this ordinance, or the application of same to a
particular set of persons or circumstances, should, for any
reason, be held to be invalid, such invalidity shall not affect
the remaining portions of this ordinance, and, to such end, the
various portions and provisions of this ordinance are declared to
be severable.
PASSED BY THE CITY COUNCIL of the City of Beaumont this
the day of 1987.
Mayor
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