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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 t 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 -2- 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 -3- 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 -4- 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 1 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 -5- 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.` i Ma or City of Beaumont, Texas ATTEST: M 7 C1 rk City 'o" ..,Beaumont, Texas (SEAL) t _ ,N. -6- 7