HomeMy WebLinkAboutORD 85-117 7
ORDINANCE AUTHORIZING THE ISSUANCE OF $4, 500, 000
TAX ANTICIPATION NOTES, SERIES 1985
WHEREAS, the City of Beaumont, Texas (the "City" ) is
authorized to raise money on the credit of the City for the
purpose of temporary borrowing, as permitted by Article VII ,
Section 9, of the City' s Home Rule Charter, as amended, and
the Constitution and laws of the State of Texas, and to
issue its notes for such purpose in anticipation of the
collection of taxes; and
WHEREAS, to evidence such borrowing, the City proposes
to issue and, sell its negotiable tax anticipation notes
payable from taxes collected by the City, and the City now
desires to issue, sell and deliver same; and
WHEREAS, it is hereby affirmatively found and deter-
mined that sufficient funds have been budgeted and will be
available to pay the principal of and interest on said notes
when due, all as hereinafter provided; Now, Therefore
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section 1. It is hereby affirmatively found and
determined that all of the matters and facts set out in the
preamble of this ordinance are true and correct.
Section 2 . The negotiable notes of the City, to be
known and designated as "City of Beaumont, Texas, Tax
Anticipation Notes, Series 1985" (the "Notes" ) , shall be
issued in the total aggregate amount of $4, 500, 000 for the
purpose of temporary borrowing in anticipation of the
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collection of taxes, as provided in Article VII, Section 9
of the Home Rule Charter of the City, as amended, pursuant
to and in compliance with said Section and the Constitution
and laws of the State of Texas.
Section 3 . The Notes shall be dated November 25, 1985,
shall be numbered consecutively from 1 upward, shall be in
the denomination of $25, 000 and shall mature on Septem-
ber 25, 1986, without option of prior redemption.
Section 4. The Notes shall bear interest at the rate
of 6-ZS % per annum, which shall be payable on the date
indicated in the FORM OF NOTES set forth in this ordinance.
Section 5. The Notes shall be payable, shall have the
characteristics, and shall be signed and executed (and said
Notes shall be sealed) , all as provided in the manner
indicated in the FORM OF NOTES set forth in this ordinance.
Section 6. The form of the Notes shall be substantial-
ly as follows, with such additions, deletions and variations
as may be necessary or desirable and permitted by this
ordinance:
No. $25, 000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF JEFFERSON
CITY OF BEAUMONT, TEXAS
TAX ANTICIPATION NOTE
SERIES 1985
THE CITY OF BEAUMONT hereby acknowledges itself indebt-
ed to and promises to pay to bearer on September 25, 1986,
from certain ad valorem taxes to be collected by the City,
the principal amount of
TWENTY-FIVE THOUSAND DOLLARS
and to pay, from the same source, interest thereon, from the
date hereof, at the rate of % per annum, payable
September 25, 1986. The principal of this note and the
interest hereon shall be payable in any coin or currency
which, on the date of payment of such principal and inter-
est, 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 note at
Texas Commerce Bank National Association, Houston, Texas,
or at the option of the holder, at Texas Commerce Trust
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Company of New York, New York, New York (the "Paying
Agents" ) .
THIS NOTE is one of a series of negotiable notes, dated
November 25, 1985, issued in the aggregate principal amount
of $4, 500,000 for the purpose of temporary borrowing in
anticipation of the collection of taxes, as provided in
Article VII, Section 9, of the City' s Home Rule Charter, as
amended, pursuant to and in compliance with said Section and
pursuant to an ordinance (the "Ordinance" ) duly adopted by
the City Council, under and in strict conformity with the
Constitution and laws of the State of Texas.
THE CITY has levied an ad valorem tax for the current
year on all taxable property in the City sufficient to raise
and produce the money required to pay the general operating
expenses of the City for the fiscal year ending Septem-
ber 30, 1986, including the interest on the notes as such
interest comes due and to pay the principal of the notes as
such principal matures. In the Ordinance the City has
pledged such taxes, as collected, as security for the
payment of the principal of and interest on the notes. The
Ordinance requires all such taxes, as collected, to be
deposited into a special account of the City created for
that purpose, until there is on deposit in such account
amounts sufficient to pay the principal of and interest on
the Notes at maturity.
The holder hereof shall never have the right to demand
payment from any funds raised or to be raised by taxes
levied to pay the principal of and interest on bonds issued
by the City.
IT IS HEREBY CERTIFIED, RECITED AND COVENANTED that
this note 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 precedent to or in
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the issuance and delivery of this note, have been performed,
exist and have been done in accordance with law; that this
note does not exceed any Constitutional or statutory limita-
tion; and that due provision has been made for the payment
of the interest on and principal of this note, as such
interest comes due and such principal matures, by an irrev-
ocable pledge of the taxes levied for the payment of the
general operating expenses of the City for the fiscal year
ending September 30, 1986, as collected.
IN WITNESS WHEREOF, this note has been executed by the
manual, imprinted or lithographed facsimile signatures of
the Mayor and the City Clerk, and the official seal of the
City has been duly affixed by being impressed, or placed in
facsimile, on this note.
xxxxxxxxxx
Mayor
City of Beaumont, Texas
ATTEST:
xxxxxxxxxx
City Clerk
City of Beaumont, Texas
(SEAL)
Section 7. The approving opinion of Vinson & Elkins,
Houston, Texas, may be printed on the backs of the Notes,
but errors or omissions in the printing of such opinion
shall have no effect whatever on the validity of the Notes.
Section 8. The Notes and the interest thereon shall be
payable from the proceeds, as collected, of ad valorem taxes
heretofore levied on. ���=rn��z�<,
-a��`, 1985, on all taxable
property in the City for the payment of the general operat-
ing expenses of the City for the fiscal year ending Septem-
ber 30, 1986. Such taxes are hereby irrevocably pledged as
security for payment of the principal of and interest on the
Notes, and all proceeds from such taxes received after
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December 1, 1985, as collected, shall be deposited into the
City' s Series 1985 Tax Anticipation Note Account (the "Note
Account" ) until there is on deposit in the Note Account
amounts sufficient to pay the principal of and interest on
the Notes at maturity. The Note Account shall be estab-
lished and maintained at a depository bank of the City,
shall be kept separate and apart from all other funds and
accounts of the City, and shall be used only to pay the
principal of and interest on the Notes. In addition,
accrued interest from the date of the Notes until their
delivery, and any premium, shall be deposited into the Note
Account. Money on deposit in the Note Account shall be
invested only in United States Treasury obligations which
mature on or before the maturity date of the Notes.
The holders of the Notes shall never have the right to
demand payment from any funds raised or to be raised by
taxes levied to pay the principal of and interest on bonds
issued by the City.
Section 9 . The City certifies that, based on all facts
and estimates now known or reasonably expected to be in
existence on the date the Notes are delivered and paid for,
the City expects that the proceeds of the Notes will not be
used in a manner that would cause the Notes or any portion
of the Notes to be an "arbitrage bond" under Section
103 (c) (2 ) of the Internal Revenue Code of 1954, as amended,
and the regulations prescribed thereunder. Furthermore, all
officers, employees and agents of the City are authorized
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and directed to provide certifications of facts and esti-
mates that are material to the reasonable expectations of
the City as of the date the Notes are delivered and paid
for. In particular, all or any officers of the City are
authorized to certify for the City the facts and circum-
stances and reasonable expectations of the City on the date
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the Notes are delivered and paid for regarding the amount
and use of the proceeds of the Notes. Moreover, the City
covenants that it shall make such use of the proceeds of the
Notes, regulate investments of proceeds of the Notes, and
take such other and further actions as may be required so
that the Notes shall not be "arbitrage bonds" under Section
103(c) (2) of the Internal Revenue Code of 1954, as amended,
and the regulations prescribed from time to time thereunder.
Section 10. The Mayor is hereby authorized to have
control of the Notes and all necessary records and proceed-
ings pertaining to the Notes pending their delivery.
Section 11. The Notes are hereby sold and shall be
delivered to Ehrlich-Bober & Co. , Inc . , for $4, 500,000 plus
accrued interest thereon to the date of delivery, subject to
the approving opinion as to the legality of said Notes of
Vinson & Elkins, Houston, Texas, Bond Counsel
PASSED AND APPROVED this 19th day of November, 1985.`
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Ma or
City of Beaumont, Texas
ATTEST:
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C1 rk
City 'o" ..,Beaumont, Texas
(SEAL)
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