Loading...
HomeMy WebLinkAboutResolution No. 73-?? - DRAINAGE IMPROVEMENT BONDS, SERIES 1973 1 t icte RESOLUTION AUTHORIZING ISSUANCE OF $100 ,000 DRAINAGE IMPROVEMENT BONDS, SERIES 1973 THE STATE OF TEXAS § COUNTY OF GALVESTON § CITY OF FRIENDSWOOD § WHEREAS, the bonds hereinafter authorized were duly and favorably voted at an election held in the City on the llth day of August , 1973; and WHEREAS, the City Council now deems it advisable to issue, sell, and deliver said bonds, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD THAT : Section 1. The City' s negotiable, serial, coupon bonds to be designated CITY OF FRIENDSWOOD, TEXAS, DRAINAGE IMPROVE- MENT BONDS, SERIES 1973 (hereinafter sometimes called the "Bonds") , are hereby authorized to be issued and delivered in the principal amount of $100 ,000 for the purpose of THE CON- STRUCTION OF PERMANENT DRAINAGE IMPROVEMENTS IN AND FOR SAID CITY. Section 2 . Said Bonds shall be dated November 1, 1973, shall be numbered consecutively from 1 through 20, and shall be in the denomination of $5,000 each, and shall mature serially on June 1 of each of the years, and in the amounts, respectively, as set forth in the following schedule : YEAR AMOUNT YEAR AMOUNT 1989 $10,000 1992 $15,000 1990 15,000 1993 15,000 1991 15,000 1994 15,000 1995 15,000 f The. Bonds may be redeemed prior to their scheduled maturities, at the option of the City, on the dates stated and in the man- ner provided in the FORM OF BOND set forth in this resolution. Section 3. The Bonds shall bear interest per annum at the following rates , respectively, to-wit : Bonds maturing 1989 through 1990, 6% Bonds maturing 1991 through 1995, 6 . 10% evidenced by interest coupons which shall appertain to the Bonds and which shall be payable on the dates indicated in the FORM OF BOND set forth in this resolution. • Section 4 . The Bonds , and the interest coupons apper- taming thereto, shall be payable, shall have the character- istics , and shall be signed and executed (and the Bonds shall be sealed) , all as provided and in the manner indicated in the FORM OF BOND set forth in this resolution. Section 5 . The form of the 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 the Bonds , and the form of the aforesaid interest coupons which shall appertain and be attached initially to each of the Bonds, shall be, respectively, substantially as follows : FORM OF BOND: NO. $5 ,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF GALVESTON -2- CITY OF FRIENDSWOOD, TEXAS DRAINAGE IMPROVEMENT BOND • SERIES 1973 ON JUNE 1, 19 , the CITY OF FRIENDSWOOD, in the County of Galveston, in the State of Texas, 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 June 1, 1974, and semiannually thereafter on each December 1 and June 1 while this bond is outstanding. The principal of this bond and the interest coupons appertaining hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this bond or proper inter- est coupon at the FRIENDSWOOD BANK, Friendswood, Texas , which shall be the paying agent for• this series of bonds . THIS BOND is one of a series of negotiable, serial, cou- pon bonds, dated November 1, 1973, numbered consecutively from 1 through 20 , in the denomination of $5,000 each, issued in the principal amount of $100 ,000 for the purpose of THE CON- STRUCTION OF PERMANENT DRAINAGE IMPROVEMENTS IN AND FOR SAID CITY, in accordance with Chapters 1 and 7 of Title 22 , Revised Civil Statutes of Texas , as amended, and pursuant to an elec- tion held within the City on the llth day of August , 1973. ON JUNE 1, 1989 , OR ON ANY INTEREST PAYMENT DATE THERE- AFTER, the outstanding bonds of this series may be redeemed' prior to their scheduled maturities , at the option of the -3- F City, IN WHOLE, OR IN PART IN INVERSE NUMERICAL ORDER, for the principal amount thereof and accrued interest thereon to 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 bank at which the bonds are payable and published at least once in a financial publication published in the City of New York, New York. By the date fixed for any such redemp- tion, due provision shall be made with the paying agent for the payment of the required redemption price . If such written notice of redemption is published and if due provision for such payment is made, 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 agent 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 delivered; 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 obligation of the City, issued on the full faith and credit thereof; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this bond, as such interest comes due and such principal -4- matures, have been levied and ordered to be levied against all taxable property in the City and have been pledged irrevocably for such payment within the limits prescribed by law. IN WITNESS WHEREOF, this bond and the interest coupons appertaining hereto have been signed with the facsimile sig- nature of the Mayor and countersigned with the facsimile signature of the City Secretary of the City, respectively, and the official seal of the City has been duly impressed, or placed in facsimile, on this bond. xxxxxxxxxx Mayor CITY OF FRIENDSWOOD, TEXAS COUNTERSIGNED: xxxxxxxxxx City Secretary CITY OF FRIENDSWOOD, TEXAS (SEAL) FORM OF REGISTRATION CERTIFICATE: COMPTROLLER' S REGISTRATION CERTIFICATE § REGISTER NO. I hereby certify that this bond has been examined, cer- tified 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 xxxxxxxxxx Comptroller of Public Accounts of (SEAL) the State of Texas FORM OF INTEREST COUPON: NO. $ -5- ON 1, 19 the CITY OF FRIENDSWOOD, in the County of Galveston, State of Texas , ,promises to pay to bearer the amount shown on this in- terest coupon, in lawful money of the United States of America, without exchange or collection charges to the bearer, unless due provision has been made for the redemption prior to maturity of the bond to which this coupon appertains , upon presentation and surrender of this interest coupon, at the FRIENDSWOOD BANK, Friendswood, Texas, said amount being interest due that day on the bond bearing the number hereinafter designated of that issue of CITY OF FRIENDSWOOD, TEXAS, DRAINAGE IMPROVEMENT BONDS, SERIES 1973, dated November 1, 1973. Bond No . xxxxxxxxxx xxxxxxxxxx City Secretary Mayor Section 6. A special fund or account , to be designated the "City of Friendswood, Texas , Drainage Improvement Bonds , Series 1973, Interest and Sinking Fund, " is hereby created and shall be established and maintained by the City at an official depository bank of the City. The Interest and Sinking Fund shall be kept separate and; apart from all other funds and accounts of the City and shall be used only for paying the in- terest on and principal of said Bonds . All ad valorem taxes levied and 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 in- terest coupons appertaining thereto are outstanding and unpaid, the City Council of the City shall compute and ascertain a -6- rate and amount of ad valorem tax which will be sufficient to raise and produce the money required to pay the interest on the Bonds as such interest comes due and to provide and main- tain a sinking fund adequate to pay the principal of the Bonds as such principal matures but never less than 2% of the orig- inal principal amount of the Bonds as a sinking fund each year; and, said tax shall be based on the latest approved tax rolls of the City, with full allowance being made for tax delinquen- cies 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 the 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 the 'Bonds , as such interest comes due and such principal matures , are hereby pledged irrevocably for such payment, within the limits prescribed by law. Section 7. The City certifies that based upon all facts , estimates and circumstances now known or reasonably expected to be in existence on the date the Bonds are delivered and paid for, the City reasonably expects that the proceeds of the Bonds will "not be used in a manner that would cause the Bonds or any portion of the Bonds to be an "arbitrage bond" under Section 103(d) (2) of the Internal Revenue Code of 1954, as amended, and the temporary and proposed regulations hereto- fore prescribed thereunder, including, without limitation, -7- Sections 1. 103-13 and 1 . 103-14 of the proposed regulations published in the Federal Register on May 3, 1973. Furthermore, all officers , employees and agents of the City are authorized and directed to provide certifications of facts , estimates and circumstances which are material to the reasonable expecta- tions of the City as of the date the Bonds are delivered and paid for, and any such certifications may be relied upon by counsel, by the owners or holders of the Bonds , or by any person interested in the exemption of interest on the Bonds from Federal income taxatioh. Moreover, the City covenants that it shall make such use of the proceeds of the Bonds ; regulate investments of proceeds of the Bonds , and take such other and further action as may be required so that the Bonds shall not be "arbitrage bonds" under Section 103(d) of the Internal Revenue Code of 1954, as amended, and regulations prescribed from time to time thereunder. Section 8 . The Mayor of the City is hereby authorized to have control of the Bonds and all necessary records and proceedings pertaining to the 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 the Bonds , the Comptroller of Public Accounts (or a deputy designated in writing to act for the Comptroller) shall manually sign the Comptroller' s Registra- tion Certificate prescribed herein to be printed and endorsed on each Bond; and the seal of the Comptroller shall be im- pressed, or placed in facsimile, on each of the Bonds . -8- vi _ Section 9 . The Bonds are hereby sold and shall be de- livered to TEXAS SECURITIES CORPORATION, San Antonio, Texas, for the par value thereof and accrued interest thereon to date of delivery, subject to the unqualified approving opinions , as to .the legality of the Bonds , of the Attorney General of the State of Texas and of Vinson, Elkins , Searls , Connally & Smith, Houston, Texas , market attorneys . Section 10 . The Mayor and all other appropriate officers of the CITY OF FRIENDSWOOD are hereby authorized and directed to do any and all things necessary or convenient to carry out the provisions of this resolution. Section .11 . This resolution was read once by the City Council and shall take effect immediately . Section 12 . It is hereby officially found and determined that the need of the City for such financing creates an emer- gency and an urgent public necessity for the holding, at the scheduled time, of the meeting of the City Council at which this resolution is adopted and for the adoption of this reso- lution; and the NOTICE OF MEETING relating to said meeting and heretofore posted by the City' Secretary, and the posting thereof, is hereby authorized, approved, adopted, ratified, and confirmed. PASSED AND APPROVED this /a F" day of , 1973. .ATTEST: Mayor CITY OF FRIENDSWOOD, TEXAS City Secretary CITY OF FRIENDSWOOD, TEXAS -9- _