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HomeMy WebLinkAboutORD 71-50ORDINANCE NO. 71- � C ORDINANCE AUTHORIZING THE ISSUANCE OF $8,200,000 CITY,OF BEAUMONT, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1971 WHEREAS, at an election held in and throughout the City of Beaumont, Texas, on the 4th day of May, 1971, more than a majority of the,duly qualified resident electors of said City., voting at said election, voted in favor of the issuance of the following tax bonds of said City, to -wit: $1,900,000 bonds for the purpose of,constructing permanent public improvements in and for said City,,to-wit: a,Central Library Building, $2,900,000 bonds for the,purpose of constructing permanent public improvements in and for said City, to -wit: a Police and Corporation Court Building, $200,000 bonds for the purpose of constructing permanent public improvements in and for said City, to -wit: a Fire Training Building, $5,590,000 bonds for the purpose of constructing permanent public improvements in and for said City, to -wit.: the construction and improvement of the roads, bridges, and streets of such City, including, but not by way of limitation, related drainage facilities, related traffic control de- vices, and the acquisition of rights-of-way, $360,000 bonds for the purpose of constructing permanent public improvements in and for said City, to -wit: improving and extending a traffic control system for said City, and $2,000,000 bonds for the purpose ofconstructing permanent public improvements in and for said City, to -wit: sanitary sewer improvements, a-'71 - lao g- a 8 -moi --�f IQ said. bonds to mature serially within 25 years from their date or dates and bearing interest at,any rate or rates as shall be determined within the discretion of,said--City Council, but not exceeding 7% per annum; and WHEREAS, the City Council of said City has determined that $400,000 Central Library Building bonds-, $2,620,000 Police and Corporation Court Building bonds, $20,000 Fire Training Building bonds, $4,000,000 street improvement bonds, $160,000 traffic control system -bonds and $1:,000,000 sanitary sewer improvements bonds should be.issued, sold and -delivered . at this time, leaving the remaining $4,750,000 bonds, to -wit: $1,500,000 Central Library Building bonds, $ 280,000 Police and Corporation Court Build'ng bonds, $ 180,000 Fire Training Building bonds, $1,590,000 street improvement bonds, $ 200,000 traffic -control system bonds; and $1,000,000 sanitary sewer improvements bonds to be issued, sold and -delivered at a later date; and WHEREAS, the City Council of said. City has determined that said $400,000 Central Library.,Building bonds, $2,620,000 Police and Corporat.ion.Court Building bonds, $20,000 Fire Training Building bonds,,$4;000,000 street improvement bonds, $160,000 traffic control system bonds and $1,000,000 sanitary sewer improvements bonds, aggregating $8,200,000, should be com- bined into one issue of bonds, and said City Council now desires to proceed with the issuance, sale and delivery of such bonds; Therefore -2- i 1-S o • BE IT ORDAINED BY,THE CITY OF BEAUMONT: Section 1. The City's negotiable, serial, coupon bonds to be designated "CITY OF BEAU-MONT, TEXAS, GENERAL.OBLIGATION. BONDS, SERIES 1971", are hereby authorized to be issued and de- livered in the principal,amount of $8,200,000 for the.purpose of constructing permanent public improvements in and for said City, to -wit: a Central Library Building, a Police and,Corpora- tion Court Building, a Fire Training Building; street improve- ments, traffic control system improvements; and sanitary sewer improvements. Section 2.. Said bonds shall be dated September 1, 1971, shall be numbered consecutively from 1 to 1640,' both inclusive, shall be in the denomination of $5,000 each, and shall mature serially on September 1 of each of the years, and in the amounts, respectively, as set forth in the following schedule, to -.wit: $ 195,000 1980, 220,000 1981 255,000 1982 655; oo-0 1983 695,000 1984 735,000 1985 780,000 1986 830,000 1987 875;000 1988 930,000 1989 990,000 1990 1,040,000 1991 Said bonds may be redeemed prior to their scheduled maturities, at!the option of the City, on the dates stated and in the manner provided in the FORM OF BONDS set forth in this ordinance. —3— 0 Section 3. Said bonds shall bear interest per annum at the following rates, respectively, to -wit: Bonds maturing 1980 through 199:5 , %, Bonds maturing 192L_ through 19 8,f , ,�(� %, Bonds maturing 19 S/,,, through 19 (!;7 ,�S D0 Bonds maturing 1991Y through 19 -- , 57. /�O Bonds maturing 19,�>7 through 19IZP %, f evidenced by interest coupons which shall appertain to said bonds and which shall be payable on the dates indicated in the FORM OF BONDS set forth in this ordinance. Section 4. Said bonds; and the interest coupons appertain- ing thereto, shall be payable, shall have the.characteristics, and shall be signed and executed (and said bonds shall be sealed), all as provided and in the.manner indicated in the FORM.•OF BONDS set forth in this ordinance. Section 5. The form of said bonds, including the form of registration certificate of the Comptroller of Public Accounts of the State of Texas to be printed and.endorsed,on each of said bonds, and the form of -the aforesaid interest coupons which shall appertain and be attached initially to each of said bonds, shall be, respectively, substantially as follows: -4- No. FORM OF BONDS: UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF JEFFERSON $5,000 CITY OF BEAUMONT, TEXAS, GENERAL OBLIGATION BOND, SERIES 1971 ON SEPTEMBER 1, 19 the CITY OF BEAUMONT, in the County of Jefferson, State of Texas, hereby acknowledges itself indebted,to and PROMISES TO PAY TO BEARER 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 March;l, 1972; and semiannually thereafter -on -September 1 and March 1 of each year while this bond is outstanding. The principal_of this bond and the interest coupons appertaining hereto shall be payable to bearer in any.coin or currency which, on the respective dates of.payment of such principal and interest, is legal tender for -the payment of debts due the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this bond or proper interest coupon, at The American National Bank of Beaumont, Texas, which shall be the paying agent for this series of .bonds, or, at the option of the holder, at. which shall be the co -paying agent for this series of bonds. =5- THIS BOND is one of a series of negotiable, serial, coupon bonds, dated September 1, 1971, issued in the principal amount of.$8,200,000 (constituting a portion and the first installment out of a total of $12,950,000 bonds authorized at an election held within the City on May 4, 1971), in accordance with Chapters 1 and'7 of Title 22, Revised Civil -Statutes of Texas, 1925, as amended, the Home-Rule,Charter of said City, and authorized pursuant to an ordinance duly adopted by the,City Council of the City for the purpose of constructing permanent. public improvements in -and -for said City, to -wit: a Central Library Building, a Police and,Corporation Court Building, a Fire Training Building, street improvements, traffic control system improvements, and•sanitary,sewer improvements. ON SEPTEMBER 1, 1986, AND ON ANY INTEREST PAYMENT DATE THEREAFTER, the outstanding bonds of this series may be redeemed prior to their scheduled maturities, at:the option of the City, in whole or in -part, in inverse numerical order, for the principal amount thereof and accrued interest thereon to the date fixed for any such redemption. At least thirty days prior to the date fixed for any such redemption, the City shall cause a written notice of such redemption to be mailed to the.banks at which said bonds are payable and published at least once.in a financial publication published in the -City of,New York, New York, or in -the City of Austin, Texas. By.the date fixed for any such,redemption, due provision shall,be made with the, paying agents for the payment of, the required redemption price. If such written notice of -redemp- tion is published and if due provision for such payment is made, IM. all as provided above, the bonds which are to be so redeemed thereby automatically shall be redeemed prior to their scheduled maturities; and they shall not be regarded as being outstanding except for the purpose of being paid:by the paying agents with the funds so provided for -such payment. IT IS HEREBY. CERTIFIED, RECITED AND COVENANTED that this bond has been duly and validly voted, authorized, issued and de-. livered; that.all acts=, conditions and things required or proper to be. performed, exist 'and be done precedent ,to or in -'the issuance and delivery of this - bond, have been performed,, existed, and been done in accordance with law; that this bond is a general obliga- tion.of the City, issued on the full faith and credit thereof; that.due provision has been made for the payment of the principal of and interest'on this bond, andthe series of which it is a part, by the levy.of a direct annual ad valorem tax upon all taxable. property within said City'suffi,cient for,said purposes; and that the total indebtedness,of said. City, including,the entire series of.bonds of which this is one, does'not exceed any Constitutional or statutory limitation. IN TESTIMONY WHEREOF,: this bond and the interest.coupons appertaining hereto have been signed with the facsimile signature. of the Mayor and countersigned.with the facsimile signature of the City Clerk, and the official seal of the City,has been duly,impres.sed, or placed in facsimile, on this bond: COUNTERSIGNED: City .Clerk, City of Beaumont, Texas (SEAL) Mayor, City of Beaumont, Texas, -7- FORM OF REGISTRATION CERTIFICATE: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I HEREBY CERTIFY that this bond has been examined, 6-1q certified as to validity, and approved by the Attorney General of the State of Texas and that this bond has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS -my signature and seal.this (SEAL) No. Comptroller of Public Accounts of the,'State of Texas FORM OF INTEREST COUPONS: ON 1, 19 ,* THE CITY OF BEAUMONT, in the County of Jefferson, State of Texas, PROMISES TO PAY TO BEARER the amount shown on this interest coupon, in any coin or currency which on such date is legal tender for the payment of debts due the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this interest coupon at'The American National Bank of Beaumont, Texas, or, at the option of the holder, at , said amount being interest due that date on the bond bearing the number..herei-nafter designated *(Coupons maturing after September 1, 1986, shall contain the following additional clause: unless the bond to which this coupon Apper- tains has been called for redemption and due provision made to redeem same,) of.that issue of City of Beaumont, Texas, General Obligation Bonds, Series 1971, dated September 1, 1971. Bond No. Mayor, City of Beaumont, Texas City Clerk, City of Beaumont, Texas Section 6. That there is hereby created a special fund to be designated "City of Beaumont; Texas, General Obligation Bonds, Series 1971, Interest and Sinking Fund", and all taxes collected for and on account of.said.bonds shall be deposited, as.collected, to the credit of the Interest and Sinking Fund.. During each year while any of said bonds or interest coupons appertaining thereto are outstanding and unpaid, the City Council of the City 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 bonds as such interest comes due and to provide and maintain a sinking fund of not less than 2%.of the principal amount of said bonds or not less than the amount required to pay the principal,out of said tax, whichever is greater; and said tax shall be based on the latest approved tax rolls of the City, with full allowance being made for tax delinquencies -,and the cost of tax collection. Said rate and amount of.ad valorem tax are hereby levied, and are hereby ordered to be levied, against all taxable property in the,City.for each year while any of said bonds 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 of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of said bonds, as such interest comes due and such principal matures, are hereby pledged irrevocably for such pay- ment within the limits prescribed.by law. Section 7. The City hereby specially covenants and agrees_with,the original purchasers of the Series 1971 Bonds (the "Bonds") and with the owners or holders from time to time of the Bonds that: 1: The City will -promptly proceed to utilize the proceeds of the sale of the Bonds (other than accrued interest to date of delivery and any premium) for the purpose, as stated on_the face of each of said Bonds, for which the Bonds are to be issued. 2. No portion of the Bonds is issued as a part of an issue, all.or a major portion of the -proceeds of which are reasonably.expected.to be used directly or indirectly: (a) to acquire securities (within the meaning of Section 165 [g][2][A] or [B] of the Internal Revenue Code), except for a temporary period as permitted by Section 103 (d)(4)(A) of the Internal Revenue Code, or.obligations other than the obligations described.in Section 103 (a)(1) of.the Internal Revenue Code which may be reason- ably expected,at the time of the issuance of such issue of Bonds to produce a yield over the term of the issue of Bonds which is materially higher (taking into account any discount or premium) than the yield on the issue of Bonds or (b) to replace funds which were used directly or indirectly to acquire securities or obligations described in subparagraph (a) above.. -10- J 3. The City will take such action as may be necessary in accordance with regulations prescribed from time to time by the Secretary of the Treasury or his delegate to carryout the purposes of Section 103 (d) of the Internal Revenue Code, so that no portion of the issue of Bonds shall be classified as an "arbitrage bond" within the meaning of Sec- tion 103 (d) of the Internal Revenue Code. 4. The City will not permit to be deposited to the credit of any of the funds herein mentioned or applied to the payment of the principal of or interest on the Bonds any proceeds from any grant, donation or income received from the United States Government, whether pursuant to agreement or otherwise, if such deposit or appli- cation would result in interest payable.on said Bonds being includable in whole or in part in gross income for Federal income taxes. Section 8. That the Mayor of said City is hereby autho- rized to have control of said bonds and all.necessary records and proceedings pertaining to said bonds 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 bonds, the Comptroller of Public Accounts (or a deputy designated in writing to act for the Comptroller) shall manually sign the Comptroller's registration certificate prescribed herein to be printed and endorsed on each bond; and the seal of the Comptroller shall be impressed, or placed in facsimile, on each of said bonds. Section 9. Said bonds,Lhaving been advertised for public sale in accordance with the terms and provisions of Section 4, Article IX of the City's Charter, and bids having been received pursuant thereto, it is hereby found and determined that the -11- b i d of at a price equal to the principal amount thereof, plus accrued interest thereon from the date.hereof to the v date of actual delivery plus a cash premium of $ U , is the best bid received, and the sale of said bonds to the named bidder at the stated price is hereby authorized, approved, ratified and confirmed, subject to the unqualified approving opinions as to the legality of the bonds by the Attorney General of the State of Texas and Vinson, Elkins, Searls & Smith, Houston, Texas, market attorneys, is hereby authorized, approved, -ratified and confirmed. Section 10. That the Mayor, City Clerk and other appropri- ate officers of the City of Beaumont are hereby authorized and directed to do any and all things necessary and/or convenient to carry out the terms of this ordinance. Section 11. That this ordinance shall take effect immediately upon its passage. PASSED AND APPROVED this Zb -tA, day of j�,�f�/yl/' , 1971. �__ 'I I A-�_2L Mayo , Cit of Beaumont, Texas ATTEST: C ty Clerk, City of 'Beaumont, Texas S SAL)