Loading...
HomeMy WebLinkAboutORD 81-80 4 . y x ORDINANCE AUTHORIZING THE ISSUANCE OF CERTIFICATES OF OBLIGATION WHEREAS, in order to enable the City of Beaumont, Texas (the "City" ) to finance much needed public works for the City, as more fully described hereinafter, the City has determined that it is in the best interests of the City to issue and sell for cash certificates of obligation in the aggregate principal amount of $5, 000, 000, to provide for the costs of such improvements and to secure such certificates by the levy of annual ad valorem taxes and further by a junior and subordinate lien on and pledge of net revenues of the City' s swimming pool facilities; and WHEREAS, the City Council of the City, by ordinance adopted September 171 1981, found that it was necessary and desirable for the City to is.sue such, certificates of obliga- tion, sell them for cash, and apply the proceeds for all or any part of the cost of constructing public works for said City, to-wit: (1 ) a vehicle maintenance and service facility and (2 ) permanent park improvements, and the City thereafter gave due and proper notice of its intention to issue and sell for cash such certificates of obligation; and WHEREAS, there has not been filed with the City Clerk a petition protesting the issuance of such certificates and requesting an election on same; and WHEREAS, it is affirmatively found that the City Council is authorized to proceed with the issuance and sale of such certificates in accordance with the terms of this Ordinance; Therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1. Findings . That the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. Section 2 . Name, Amount, Purpose and Authorization. The City' s negotiable, serial certificates of obligation to be designated "CITY OF BEAUMONT, TEXAS, PUBLIC IMPROVEMENT COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 1981 (the "Certificates" ) are hereby authorized in the principal amount of $5, 000, 000 for the purpose of con- structing public works for said City, to-wit: (1 ) a vehicle maintenance and service facility and (2 ) permanent park improvements for the City under and in strict conformity with the Constitution and laws of the State of Texas, including particularly Article 2368a. 1, Vernon' s Texas Civil Statutes, as amended. Section 3 : Date, Denomination, Interest Rates and Maturities . The Certificates shall be dated October 1, 1981, shall be in the denomination of $5, 000, shall be numbered consecutively from 1 through 1000, both inclusive, shall bear interest per annum from their date until paid at the rates shown below payable on the dates shown in the FORM OF CERTIFICATE set forth in this Ordinance and shall mature serially on the maturity date, in each of the years, and in the amounts as set forth in the following schedule: MATURITY DATE: OCTOBER 1 CERTIFICATE INTEREST Numbers YEARS AMOUNTS RATES 1-200 1982 1, 000, 000 10 . 50% 201-400 1983 1, 000, 000 10 . 50% 401-600 1984 1, 000, 000 10 .35% 601-800 1985 1, 000, 000 10 .25% _ 801-1000 1986 1, 000, 000 10.25% The Certificates shall not be subject to redemption at the option of the City, prior to their scheduled maturities . Section 4: Manner of Payment, Characteristics and Execution. The Certificates shall be payable, shall have the characteristics, and shall be signed and executed (and the Certificates shall be sealed) , all as provided and in the manner indicated in the FORM OF CERTIFICATE set forth in this Ordinance. Section 5 : Form of Certificates and Comptroller' s Registration Certificate. The form of the Certificates tes and the form of registration certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of the Certificates shall be substantially as follows, with such additions, deletions and variations as may be necessary or desirable and permitted or required by this Ordinance: FORM OF CERTIFICATE: No. $5, 000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF JEFFERSON CITY OF BEAUMONT, TEXAS, PUBLIC IMPROVEMENT COMBINATION TAX AND REVENUE CERTIFICATE OF OBLIGATION SERIES 1981 THE CITY OF BEAUMONT, in the County of Jefferson, State of Texas, PROMISES TO PAY TO BEARER on the 1st day of October, the principal amount of FIVE THOUSAND DOLLARS from the date hereof until the principal thereof is paid at the rate of % per annum, payable on each April 1 and October 1 commencing g on April 1, 1982 . Both principal of and interest on this certificate shall be payable in any coin or currency of the United States of lunerica which, on the respective dates of payment of such principal and inter- est, is legal tender for the payment of debts due the United States of America, the principal being payable at the First City National Bank of Houston, Houston, Texas, which shall be the paying agent for this series of certificates. THIS CERTIFICATE IS ONE OF A SERIES of 1000 negotiable, serial certificates of obligation of like tenor and effect, -2- except as to number, and maturity, dated October 1, 1981, issued in the aggregate principal amount of $5, 000, 000 for the purpose of evidencing the indebtedness of said City for paying all or any part of the cost of constructing public works for the City to-wit: (1 ) a vehicle maintenance and service facility and (2 ) permanent park improvements, under and in strict conformity with the Constitution and laws of the State of Texas, including particularly Article 2368a. 1, _ Vernon' s Texas Civil Statutes, as amended, and authorized pursuant to an ordinance duly adopted by the City Council of the City, which Ordinance is of record in the official minutes of the City Council . THE DATE OF THIS CERTIFICATE, in conformity with the Ordinance above mentioned, is October 1, 1981 . IT IS HEREBY certified, recited and covenanted that this certificate 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 prece- dent to or in the issuance and delivery of this certificate, have been performed, existed and been done in accordance with law; that due provision has been made for the payment of the interest on and principal of this certificate and the series of certificates of which it is a part by the levy of a direct annual ad valorem tax upon all taxable property in the City sufficient for such purposes, and, in addition, by a junior and subordinate lien on and pledge of the Net Revenues of the City' s swimming pool facilities; that this certificate shall be a debt of the City within the meaning of Article XI , Sections 5 and 7 of the Constitution of Texas; that, when delivered,_ this certificate shall be deemed and construed to be ".a "Security" within the meaning of Chapter 8, Investment Securities, Texas Uniform Commer- cial Code; and that the issuance of this series of certifi- cates does not exceed any constitutional or statutory limitation. IT IS FURTHER CERTIFIED, RECITED AND REPRESENTED that the revenues to be derived from the operation of the City' s swimming pool facilities (the "System" ) , after the payment of all operation and maintenance expenses of the System, are also pledged to the payment of the principal of and interest on this certificate and the series of which it is a part to the extent that the taxes levied and collected for same may ever be insufficient or unavailable for such purpose, all as set forth in the Ordinance to which reference is made for all particulars; provided, however, that such pledge of said revenues is and shall be junior and subordinate in all respects to the pledge of said revenues to the payment of (1 ) the City' s outstanding bonds payable from such revenues and (2 ) all other revenue bonds which the City may hereafter issue and which are secured by a lien on the Net Revenues of the System on a parity with such outstanding bonds . THE CITY RESERVES THE RIGHT to issue additional certi- ficates or bonds payable in whole or in part from the Net Revenues of the City' s swimming pool facilities, secured in the same manner and placed on a parity with the lien on and pledge of such Net Revenues to this certificate and the series of which it is a part, and to refund this certificate and the series of which it is a part in any manner provided by law. -3- IN WITNESS WHEREOF, this certificate and the interest coupons appertaining hereto have been signed with the fac- simile signature of the Mayor of the City and countersigned with the facsimile signature of the City Clerk of the City, and the official seal of the City has been duly impressed, or placed in facsimile, on this certificate. xxxxxxxxxxxxxxxxxxxx Mayor COUNTERSIGNED: CITY OF BEAUMONT, TEXAS xxxxxxxxxxxxxx City Clerk CITY OF BEAUMONT, TEXAS (CITY SEAL) -4- a FORM OF REGISTRATION CERTIFICATE: OFFICE OF THE COMPTROLLER § § REGISTER NO. THE STATE OF TEXAS § I HEREBY CERTIFY that this certificate has been ex- amined, certified as to validity, and approved by the Attor- ney General of the State of Texas and that this certificate has been registered by the Comptroller of Public Accounts of the State of Texas . WITNESS MY SIGNATURE AND SEAL this xxxxxxxxxxxxxxxxx Comptroller of Public Accounts (SEAL) of the State of Texas FORM OF INTEREST COUPON: No. $ ON 1, , the CITY OF BEAUMONT, TEXAS, promises to PAY TO BEARER, but solely from the Net Revenues described in the certificate to which this coupon appertains the amount shown on this interest coupon, in lawful money of the United States of America, without exchange or collection charges to bearer, upon the presentation and surrender of this interest coupon at FIRST CITY NATIONAL BANK OF HOUSTON HOUSTON, TEXAS such amount being interest due that day on the certificate, bearing the number hereinafter designated, of that issue of CITY OF BEAUMONT, TEXAS, PUBLIC IMPROVEMENT COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 1981, dated October 1, 1981. The bearer hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. XXXXXXXXXXXXXXXXXXXX xxxxxxxxxxxxxxxxxxxx City Clerk Mayor Section 7 : Levy and Pledge of Taxes . There is hereby levied, and ordered to be assessed and collected, an annual ad valorem tax within the limits prescribed by law on all taxable property in the City sufficient to pay the principal of and interest on the Certificates as such principal matures and such interest comeE due. During each year while any of the Certificates are outstanding and unpaid, the City Council shall compute and ascertain an ad valorem tax rate that will be sufficient to raise and produce the money required to pay the interest on the Certificates as such interest comes due, and either to provide and maintain a sinking fund of not less than 2% of the principal amount of such Certificates or to pay the principal amount of the Certificates becoming payable in such year, whichever is greater. Such tax shall be based upon the latest approved tax rolls of the City, -5- with full allowance being made for tax delinquencies and costs of tax collection. Such tax shall be levied, assessed and collected in each such year and the proceeds thereof deposited into the fund for such purpose hereinafter provided. All such ad valorem taxes are hereby pledged to the payment of principal of and interest on the Certificates . Section 8 . Pledge of Net Revenues . The Certificates shall also be payable from, and secured by a junior and subordinate lien on and pledge of, the Net Revenues of the City' s swimming pool facilities . To the extent ad valorem tax proceeds referred to in the preceding section are not available for the payment of principal of and interest on the Certificates, Net Revenues in amounts and at the times sufficient to provide for such payment shall be transferred after all transfers required to be made for payments on prior lien bonds, to the Interest and Sinking Fund which is hereinbelow created. The term "Net Revenues" shall mean all revenues, income and receipts of every nature derived or received by the City from the operation and ownership of the City' s swimming pool facilities after paying the expenses of operation and maintenance thereof. Section 9 : Special Funds . There are hereby created the following special funds, which shall be maintained separate and apart from all other funds and accounts of the City. City of Beaumont Public Improvements Combination Tax and Revenue Certificates of Obligation Inter- est and Sinking Fund (the "Interest and Sinking Fund" ) ; and City of Beaumont Public Improvements Combination Tax and Revenue Certificates of Obligation Construction Fund (the "Construction Fund" ) . So long as any Certificates remain outstanding all such Funds shall be maintained at the depository bank of the City. Section 10 : Interest and Sinking Fund. The Interest and Sinking Fund shall constitute a trust fund which shall be used solely for the payment of principal of and interest on the Certificates, and any additional certificates here- after issued on a parity therewith, so long as any Certifi- cates remain outstanding and unpaid. The City shall deposit into the Interest and Sinking Fund, as collected, (1 ) the proceeds of the ad valorem taxes levied for the payment of principal and interest on the Certificates, and (2 ) in the event the taxes levied and collected may ever be insufficient or unavailable to produce the amounts required in the Inter- est and Sinking Fund, the Net Revenues of the City' s swimming pool facilities, if any, after all transfers for payments on prior lien bonds have been made. On or before each principal and/or interest payment date on the Certificates, the City shall transfer from the Interest and Sinking Fund to the paying agent an amount sufficient to pay such principal of and interest on the Certificates maturing or coming due on such date. The paying agent shall totally destroy all paid Certificates and shall provide the City with an appropriate certificate of destruction. -6- Section 11 : Investments and Security For All Funds. Amounts from time to time on deposit in the Interest and Sinking Fund and the Construction Fund may be invested in the manner provided by law for Texas cities and towns, provided that such investments shall mature at such times and in such amounts as may be required to enable the City to make timely payment of all obligations payable from such Funds, including particularly interest on the Certificates r as it comes due and principal of the Certificates as it matures . Except to the extent invested in accordance with law, all amounts from time to time on deposit in such Funds shall be secured at all times in the manner provided by law for Texas cities and towns. Any interest or other invest- ment income earned from the investment or deposit of moneys in such Funds shall be credited to the Fund from which it was made. Section 12 : First Lien and Parity Obligations . The City reserves the right to issue for any lawful purpose additional certificates of obligation and bonds which may be, in whole or in part, payable from and secured by a first lien on and pledge of the Net Revenues of the City' s swimming pool facilities as well as additional certificates of obliga- tion and bonds on a parity with the pledge of and lien on such Net Revenues securing the Certificates. Section 13 : Use of Proceeds . Proceeds of the Certifi- cates shall be deposited into the Construction Fund. Any moneys deposited shall be used solely for the purpose of paying costs of issuance of the Certificates and the costs of constructing public works for the City, to-wit: (1) a vehicle maintenance and service facility and (2 ) permanent park improvements . - .Section 14: No Arbitrage. The City certifies that based upon all facts and estimates now known or reasonably expected to be in existence on the date the Certificates are delivered and paid for, the City reasonably expects that the proceeds of the Certificates will not be used in a manner that would cause the Certificates or any of the Certificates to be an "arbitrage certificate" under Section 103 (c) (2 ) of the Internal Revenue Code of 1954, as amended, and the regulations prescribed thereunder. Furthermore, all offi- cers, employees and agents of the City are authorized and directed to provide certifications of facts and estimates that are material to the reasonable expectations of the City as of the date the Certificates are delivered and paid for. In particular, all or any officers of the City are authorized to certify for the City the facts and circumstances and reasonable expectations of the City on the date the Certifi- cates are delivered and paid for regarding the amount and use of the proceeds of the Certificates . Moreover, the City covenants that it shall make such use of the proceeds of the Certificates, regulate investments of proceeds of the Certi- ficates and take such other and further actions as may be required so that the Certificates shall not be "arbitrage certificates" under Section 103 (c) (2 ) of the Internal Revenue Code of 1954, as amended, and the regulations prescribed from time , to time thereunder. Section 15 : Legal Holidays . In any case where the date established in this Ordinance for the payment of inter- est on or principal of the Certificates shall be in the State of Texas a legal holiday or a day on which banking institutions are authorized by law to close, then payment of -7- such interest or principal need not be made on such date but may be made on the next succeeding business day not a legal holiday or a day on which banking institutions are author- ized by law to close in the State of Texas with the same force and effect as if made on the date established in this Ordinance, and no further interest shall accrue. Section 16 : No Recourse Against City Officers . No recourse shall be had for the payment of the principal of or interest on the Certificates or for any claim based thereon or on this Ordinance against any officer of the City or any person executing the Certificates . Section 17: Interpretation. This Ordinance and all the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of the Certificates and the taxes levied and revenues pledged in payment thereof. The captions of the sections have been inserted for convenience of reference only and shall not in any way modify or restrict any of the terms or provisions of this Ordinance. Section 18 : Severability. If any word, phrase, clause, sentence, paragraph, section or other part of this Ordinance, or the application thereof to any person or circumstance, shall ever be held to be invalid or unconstitutional by any court of competent jurisdiction, the remainder of this Ordinance and the application of such word, phrase, clause, sentence, paragraph, section or other part of this Ordinance . to any other persons or circumstances shall not be affected thereby. Section 19: Further Proceedings. The Mayor of the City and all other appropriate officials of the City are hereby authorized and directed to do any and all things necessary and/or convenient to carry out the terms of this Ordinance. The Mayor of the City is hereby authorized to have control of the Certificates and all necessary records and proceedings pertaining to the Certificates 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 the Certificates, 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 Certificate; and the seal of the Comptroller shall be impressed, or placed in facsimile, on each of the Certificates. Section 20 : Sale of Certificates. The Certificates are hereby sold and shall be delivered to First City National Bank of Houston for the principal amount thereof plus accrued interest to the date of delivery, subject to the approving opinions, as to the legality of the Certificates, of the Attorney General of the State of Texas and Vinson & Elkins, Bond Counsel . It is hereby found, determined and declared that the above price and terms of sale of the Certificates are the most advantageous reasonably obtainable by the City. Section 21 : Open Meeting; Emergency. The City Council of the City officially finds, determines and declares that sufficient written notice of the date, hour, place and subject of the meeting at which this Ordinance is passed was posted at the places and for the length of time required -8- preceeding this meeting, as required by the Open Meetings Law, Article 6252-17, Vernon' s Texas Civil Statutes, as amended; that such meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter hereof has been discussed, considered and formally acted upon; and that the need for the Certificates herein authorized creates an emergency and urgent public necessity requiring the holding, at the scheduled 'time, of the meeting at which this Ordinance is passed. The City Council further ratifies, approves and confirms such written notice of the meeting at which this Ordinance is passed and the contents and posting thereof. PASSED AND APPROVED on October 6, 1981. 6 0 o em ATTEST: C TY OF BEAUMONT, S F City erk CITY F BEAUMONT, TEXAS (CITY �Ai, };f t� F s� -9-