HomeMy WebLinkAboutORD 72-28'7Q�
ORDINANCE NO. 72- g
ORDINANCE AUTHORIZING THE ISSUANCE OF
$3,750,.000 CITY'OF BEAUMONT, TEXAS,
GENERAL OBLIGATION BONDS, SERIES 1972
WHEREAS, a,�-\an election held in and thro4�hout the City
of Beaumont.'. Texas, on the 4th day of May, 19711, 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 of constructing
permanent public improvements in and -for said
City, to -wit: sanitary sewer,improvements,
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 heretofore
J, issued, sold and delivered $400,000 Central Library Building
bonds, $2,620,000 Police and Corporation Court.Building bonds,
$20,000 Fire Training Building bonds, .$4,000,000street improve-
ment bonds, $160,000 traffic control system bonds and $1,000,000
sanitary sewer improvements bonds, combined into one issue of
said City's General Obligation Bonds, Series 1971, leaving the
remaining $4,750,000 bonds, to -wit:
$1,500,000. Central Library Building bonds,
$ 280,000 Police and Corporation Court Building bonds,
$ 180,000 Fire Training Building bonds,
$1,590,000 street improvement bonds,
$ 200,000 traffic control system bonds, and
$13000,000 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 $1,500,000 Central -Library Building bonds, $2805000.
Police and,Corporation Court Building,bonds, $180,000 Fire
Training Building bonds, $1,590,000 street improvement bonds,
and $200,000 traffic control system bonds, aggregating
$3,750,000, should..be combined into one issue of bonds, and-sa-id
City Council .now desires to proceed with the issuance, sale and
delivery of such bonds, leaving the remaining $1,000.,000 sanitary
sewer improvements bonds to be issued, sold and delivered,at a
later date; Therefore
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section 1. The City's :negotiable, serial, coupon bonds
to be designated "CITY OF BEAUMONT, TEXAS, GENERAL OBLIGATION
BONDS, SERIES 1972", are hereby authorized to be issued and
delivered in the principal amount of $3,750,000 for the purpose.
of constructing permanent public improvements in and for said
City, to -wit: a Central Library Building, a Police and
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•
Corporation,Court Building, a Fire Training Building, street
improvements and -traffic control system improvements.
Section 2. Said bonds shall be dated June 1, 19723 shall
be numbered consecutively from 1 to 750, both inclusive, shall
be in the denomination of $5,000 each, and shall mature serially
on Septemberl of each of the years, and in the amounts, respec-
tively, as set forth in the following schedule, to -wit:
$170.100ov"'�
1979
.345,000
1980
455,000
1981
470,000
1982.
135,000
19983
515,000
1984
535,000
1985
555,000
1986
570,000
1987
Section 3. Said bonds shall bear interest per annum at
the following rates, respectively, to -wit:
Bonds
maturing
1979
through.
19 ,
p %,
Bonds
maturing
19 870
through
19 1?3
%
Bonds
maturing
19.gq
through
19
7'• Ja
Bonds
Bonds
maturing
maturing
19 9Y_
19 8 (
through
through
19
19
Z/, 7J-
%�
Bonds
maturing
19
through
193
%
evidenced,by interest coupons which:sha-11 appertain to said
bonds and which shall be payable on the dates indicated in the
FORM OF BONDS -set forth inthis ordinance.
Section 4. Said bonds, and the -interest coupons. apper-
taining 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
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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:
FORM OF BONDS:
No. $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF JEFFERSON
CITY .OF BEAUMONT, TEXAS,
GENERAL OBLIGATION BOND, SERIES 1972
THE CITY OF BEAUMONT, in the County of Jefferson, State of
Texas, hereby acknowledges itself indebted to and PROMISES TO PAY
TO BEARER ON .SEPTEMBER 1, 19 , 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 1,
1973, 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 paya-
ble to bearer in any coin or currency which, on the respective
dates•of payment of such principal and interest, is legal tender
for thepayment 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.
THIS BOND is one of a series of negotiable, serial, coupon.
bonds, dated June 1, 1972, issued in.the principal amount of
$3,750,000 (constituting a portion and the second installment
out of a total of $12,950,000 bonds.authorized at an election
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held within the City on May 4, 1971, $8,200,000 bonds having
been heretofore issued), 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 and traffic.control-system improvements.
IT IS HEREBY CERTIFIED, RECITED AND COVENANTED that this
bond has been duly and validly voted, authorized, issued and
delivered; that all acts, conditions and things required or proper
to be performed, exist and bedone 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, and the series -of which it is a
part, by the levy of a direct annual ad valorem tax upon all.
taxable property within said City sufficient 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 Signa-.
Lure. of the Mayor and countersigned with the facsimile signature
of the City Cferk, and the official seal of the City has been
duly impressed, or placed in facsimile, on this bond.
COUNTERSIGNED:
Mayor, City of Beaumont, Texas
City Clerk, City of Beaumont, Texas
(SEAL) -5-
'7
FORM OF REGISTRATION CERTIFICATE:
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I HEREBY CERTIFY that this bond has been examined, certi-
fied 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.
(SEAL)
WITNESS my signature and seal this
Comptroller of Public Accounts
of the State of Texas
FORM OF INTEREST COUPONS:
No. $
ON 1, 19 ,
THE CITY OF BEAUMONT, in the County of Jefferson, State of Texas.-
PROMISES
exas;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, said amount being interest due that date on the bond bearing
the number hereinafter designated of that issue of City of Beaumont,
Texas, General Obligation Bonds, Series 1972, dated June 1, 1972..
Bond No.
City Clerk, City of
Beaumont, Texas
9.9
Mayor, 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 1972, Interest and Sinking Fund", and alltaxes
collected for and on account of said bondsshall 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 paythe 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, which-
ever.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 arehereby,
ordered to be levied, against all taxable property in the City
for each year while any of said bonds or interest coupons apper-
taining 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 thepayment 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.1972 Bonds
(the "Bonds") and with t -he owners or holders from time to time
of the Bonds that:
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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 ora 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 fora 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 reasonably,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 materi-.
ally 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.
3., The City will take such action as may be
necessary in accordance with regulations
prescribed from time to time by the Secre-
tary 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 Section 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 men-
tioned 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 agreementlor otherwise,
if.such deposit or application,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.author-
ized 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
(9r,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, having 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
bid of l ZF? ?,J ITA)
t�SaoCr',}- %.S at a price equal to the principal
amount thereof, plus accrued interest thereon from the date
hereof to the date of actual delivery plus a cash premium of
$ / % ,.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 appro-
priate officers of the City of.Beaumont are hereby authorized
i
and directed to do any and all things necessary and/or con-
venient to carry out the terms of this ordinance.
Section.11: That this ordinance shall take effect
immediately upon,its passage.
PASSED AND APPROVED this 6th day of June, 1972.
ATTEST:
6CI-ty Clerk, City of
Beaumont, Texas
(S.EAL )
Mayo , City of Beaumont, Texas
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