HomeMy WebLinkAboutResolution No. 74-?? - GENERAL OBLIGATION BOND ISSUANCE r///
THE STATE OF TEXAS X
COUNTY OF GALVESTON X
CITY OF FRIENDSWOOD X
On this , the OVA day of August , 1974 at 7'36
o ' clock f) - .M. , the City Council of the City of Friendswood, Texas ,
convened for a g.70114- meeting in the City Hall within said
City , which meeting was at all times open to the public , and the
roll was called of the duly constituted officers and members of
said City Council , namely :
RALPH L. LOWE MAYOR
EDWARD O. ZEITLER COUNCILMAN
MILTON L. WINDLER COUNCILMAN
WILLIAM B. PATTON, SR. COUNCILMAN .
RALPH G. GONZALEZ COUNCILMAN
RICHARD L. HAKEN COUNCILMAN •
BENNY R. BAKER COUNCILMAN
AND
JAMES MORGAN CITY -MANAGER
BOBBIE C. HENRY CITY SECRETARY
and all of said persons were
present with the exception of the •
following : ///j /I(j - 60)
thus constituting a quorum. Whereupon , among other business , the
following was transacted at said meeting : A written RESOLUTION
AUTHORIZING THE ISSUANCE OF $700 , 000 CITY OF FRIENDSWOOD , TEXAS ,
GENERAL OBLIGATION BONDS , SERIES 1974 , was introduced for the con-
sideration of the City Council and read in full . It was then duly
moved and seconded that said resolution be adopted; and, after
due discussion , said motion , carrying with it the adoption of said
resolution , prevailed and carried by the following vote :
AYES : All members of said City Council
shown present above voted "AYE"
NOES : None .
7
A RESOLUTION
AUTHORIZING THE ISSUANCE
OF $700 , 000 OF GENERAL OBLIGATION BONDS
WHEREAS , heretofore on the 6th day of April , 1974 , an
election was duly and legally held in the City of Friendswood,
Texas , at which election the following proposition, among others ,
were submitted to the resident qualified electors of said City
who owned taxable property therein and who had duly rendered the
same for taxation and to all other resident qualified electors.
of said City, said proposition being as follows , to-wit :
s '
PROPOSITION
•
"Shall the City Council of the City of Friendswood,
Texas , be authorized o issue bonds in the principal
amount of ç - / OXV,I eci )7X6(15a4 DOLLARS
($ 7CD, X ) , for the purpose of constructing permanent
street improvements in said City; said bonds to mature .
serially or otherwise , as may be determined by the City
Council of said City, the maximum maturity being not
more than forty (40) years from their date ; and any is-
sue or series of said bonds to bear interest per annum
(payable annually or semi-annually) at any rate or rates
to be determined within the discretion of the City Coun-
cil of said City, provided that such rate or rates shall
not exceed the maximum rate per annum authorized by law
at the time of the issuance of any issue or series of
said bonds ; and shall the City Council be authorized to
levy an annual ad valorem tax on all taxable property
in saidCity sufficient to pay the interest on said
bonds as the same accrues , and to create a sinking fund
sufficient to pay the principal thereof as the same
matures , as authorized by the Constitution and, laws 'of
the State of Texas?"
•
WHEREAS , the returns of said election were duly certified
and returned to the City Council of said City by the judge and
clerks of said election ; and
WHEREAS , the returns of said election were canvassed
by the City Council of said City and said City Council did affirma-
tively find that a majority of the duly qualified electors of said
City who owned taxable property therein and who had duly rendered
the same for taxation had cast their votes FOR said proposition ,
and that a majority of all other resident qualified electors of
said City had cast their votes FOR said proposition , and said City
Council thereupon , by resolution duly passed and approved declared
that said proposition was sustained and adopted and that the City
Council of said City was accordingly authorized to issue the bonds .
pursuant to the authority granted by said proposition; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, . GALVESTON COUNTY, TEXAS :
I
That the bonds of said City to be known as "$700 , 000 CITY
OF FRIENDSWOOD , TEXAS , GENERAL OBLIGATION BONDS , SERIES 1974 , "
shall be issued under and in strict conformity with the Constitution
and laws of the State of Texas in the total principal amount of
SEVEN HUNDRED THOUSAND DOLLARS ($700 , 000) for the purpose of constructing
certain street improvements in the City of Friendswood.
II
That said bonds shall be numbered consecutively from
One (1 ) to One Hundred Forty (140) , both inclusive , and shall be
in the denomination of Five Thousand Dollars ($5 ,000) each, ag-
gregating the principal sum of SEVEN HUNDRED THOUSAND DOLLARS
($700 , 000) .
III
That said bonds shall be dated September 1, 1974 , and
shall become due and payable serially as follows :
BOND NOS .
(Both Incl . ) DATE OF MATURITY AMOUNT
1 March 1 , 1977 $ 5 , 000
2 March 1 , 1978 5 , 000
3 March 1 , 1979 5 , 000
4 March 1 , 1980 5 , 000
5 March 1 , 1981 5 , 000
6 - 7 March 1, 1982 10 ,000
8 - 9 March 1 , 1983 10 ,000
10 - 11 March 1 , 1984 10 ,000
12 - 13 March 1 , 1985 10, 000
14 - 15 March 1 , 1986 10 ,000
16 - 17 March 1 , 1987 10 ,000
18 - 19 March 1 , 1988 10 , 000
20 - 25 March 1 , 1989 30 , 000
26 - 31 March 1 , 1990 30 , 000
32 - 38 March 1, 1991 35 , 000
39 - 45 March 1 , 1992 35 , 000
46 - 54 March 1, 1993 45 , 000
55 - 69 March 1 , 1994 75 , 000
70 - 79 March 1 , 1995 50 ,000
80 - 93 March 1 , 1996 70 , 000
94 - 108 March 1 , 1997 75 , 000
109 - 122 March 1 , 1998 70 , 000
123 - 140 March 1 , 1999 90 , 000
That with the exception of Bonds Nos. 1 to 54 , both in-
clusive , which mature on and prior to March 1 , 1993 , the City of
Friendswood, Texas , expressly reserves the right to redeem before
maturity all or any of the remaining bonds of this issue , to-wit:
Bonds Nos . 55 to 140 , both inclusive , on any interest payment date
on and after March 1, 1993 , by paying the principal and accrued
interest therefor to the interest payment date fixed for redemp-
tion ; and in case any of said Bonds Nos . 55 to 140 , both inclusive ,
shall be called for redemption before maturity, notice thereof
shall be given in writing to the Friendswood Bank, Friendswood,
Texas , at least thirty (30) days before the interest payment date
fixed for redemption ; and should any bond or bonds not be presen-
ted for redemption after the same are properly called for redemp-
tion and provision for payment and redemption duly made , said
bond or bonds shall cease to bear interest from and after the in-
terest payment date so fixed for redemption.
IV
That said bonds shall bear interest per annum from their
date until paid at the following rates respectively:
Bonds Nos . 1 through 69 , both inc . , at the rate of 7 . 90% per annum;
and
Bonds Nos . 70 through 140 , both inc . , at the rate of 7 . 75% per annum;
said interest shall be payable on March 1 , 1975 , and semi-annually
thereafter on September 1 and March 1 of each year , while said
bonds or any of them are outstanding , which interest shall be evi-
denced by coupons attached to each of said bonds.
V
That the principal of and interest on said bonds shall
be payable , without exchange or collection charges to the holder,
at FRIENDSWOOD BANK, FRIENDSWOOD, TEXAS , in lawful money of the
United States of America, upon presentation and surrender of bonds
or proper interest coupons as they severally mature.
VI
That in accordance with Article 717j-1 , Vernon ' s Revised.
Civil Statutes of Texas , as amended, each of said bonds shall be
executed by the imprinted facsimile signature of the Mayor of the
City of Friendswood, and countersigned by the imprinted facsimile
signature of the City Secretary of the City of Friendswood, Texas ; •
and each of the interest coupons attached to said bonds shall be
executed by the imprinted facsimile signatures of the Mayor and
City Secretary; and such imprinted facsimile signatures shall have
the same effect as if such bonds and interest coupons had been
manually signed by each of said officials ; that the City Secretary
is hereby authorized to cause the seal of said City to be imprinted
in facsimile on each of said bonds ; and the imprinting of the seal
of said City in facsimile on each of said bonds shall bave the
same legal effect as the impression of the seal of said City on
each of said bonds .
•
VII
That the form of each of said bonds shall be substantially
as, follows , to-wit :
NO. $5 ,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY. OF GALVESTON
CITY OF FRIENDSWOOD
GENERAL OBLIGATION BOND, SERIES 1974
0
KNOW ALL MEN BY THESE PRESENTS : That the City of
Friendswood , Texas , a municipal corporation duly incor-
• porated and existing under the laws of the State of
Texas , FOR VALUE RECEIVED , acknowledges itself indebted
to and hereby promises to pay to bearer
FIVE THOUSAND DOLLARS
($5 ,000) , in lawful money of the United States of America,
• on the 1st day of March, 19 , with interest thereon from
date hereof at the rate of ( %)
per annum, interest payable on March 1 , 1975 , and semi-
annually thereafter on September 1 and March 1 of each
year , upon presentation and surrender of bond or properly
annexed interest coupon as they severally mature.
BOTH PRINCIPAL OF and interst on this bond are here-
by made payable without exchange or collection charges to
the holder at the FRIENDSWOOD BANK, FRIENDSWOOD, TEXAS ,
and for the prompt payment of the interest on this bond
and the principal thereof at maturity, the full faith,
credit and resources of the City of Friendswood are here-
by irrevocably pledged.
(NOTE TO PRINTER: Insert herein Bonds Nos .
55 to 140 , both inclusive, the redemption
paragraph which i•s Section VIIjhereof) .
THIS BOND is one of a series of bonds of like tenor
and effect (except as to number , maturity date , interest
rate and right of prior redemption) , numbered consecu-
tively from One (1) to One Hundred Forty (140) , both in-
elusive , in the denomination of Five Thousand Dollars
($5 , 000) each , aggregating the principal sum of SEVEN
HUNDRED THOUSAND DOLLARS ($700 , 000) , to be used to
construct certain permanent street improvements in the
City of Friendswood, Texas , under and in strict con-
formity with the Constitution and laws of the State of
Texas , and in pursuance of a resolution passed by the
City Council of the City of Friendswood , Texas , which
resolution is of record in the minutes of said City
Council . •
•
THE DATE of this bond, in conformity with the reso-
lution above referred to , is SEPTEMBER 1, 1974 .
IT IS HEREBY CERTIFIED AND RECITED that the issuance
of this bond , and the series of which it is a part, is
duly authorized by law and by a majority vote of the •
resident qualified electors of the City of Friendswood,
Texas , who owned taxable property in said City and who
duly rendered the same for taxation , and by a majority
vote of all other resident qualified electors of said
City , voting separately, at an election duly held within '
said City; that all acts , conditions and things required
to be done precedent to and in the issuance of this
series of bonds , and of this bond, have been properly
done , performed and have happened in regular and due '
time , form and manner, as required by law; that suffici-
ent and proper provision for the levy and collection of
taxes has been made , which taxes , when collected , shall
be appropriated exclusively to the payment of this bond
and the series of which it is a part, and to the payment
of the interest coupons thereto annexed as the same shall
become due ; and that the total indebtedness of said City,
including this bond and the series of which it is a part,
does ? not exceed any Constitutional or statutory limitation .
IN WITNESS WHEREOF , the City of Friendswood, Texas ,
by its City Council , has caused the corporate seal of said
City to be imprinted hereon in facsimile , and this bond
to be executed by imprinting hereon the facsimile signa-
ture of the Mayor of the City of Friendswood , and counter-
signed by imprinting hereon the facsimile signature of the
City Secretary of the City of Friendswood , and the in-
terest coupons hereto attached to be executed by the im-
printed facsimile signatures of said Mayor and said City
Secretary (in accordance with the provisions of Article
717j-1., Revised Civil Statutes of Texas , as amended) as
of the date of this bond, the 1ST DAY OF SEPTEMBER, 1974 .
Mayor, City of Friendswood
COUNTERSIGNED :
City Secretary
(SEAL OF CITY)
VIII
That each of said bonds Nos . 55 to 140 , both inclusive ,
shall contain on its face these word, being the redemption para-
graph :
THE CITY OF FRIENDSWOOD, TEXAS , hereby reserves
the right to redeem this bond before maturity on any in-
terest payment date on and after March 1 , 1993 , by
paying the principal and accrued interest therefor to
the interest payment date fixed for redemption ; and in
case this bond shall be called for redemption before
maturity , notice thereof shall be given in writing to
the Friendswood Bank , Friendswood , Texas , at least thirty
(30) days before the interest payment date fixed for
redemption , and should this bond not be presented for
redemption after the same is properly called for redemption
and provisions for payment and redemption duly made ,
said bond shall cease to bear interest from and after
the interest payment date so fixed for redemption.
IX
That the form of the interest coupons shall be substan-
tially as follows , to-wit:
NO. $
ON THE 1ST DAY OF , 19 ,
* (unless the bond to which this coupon appertains
has been properly called for prior redemption
and provisions for payment and redemption duly
made in accordance with its terms , )
THE CITY OF FRIENDSWOOD, TEXAS , promises to pay to bearer,
without exchange or collection charges to the holder, at
the Friendswood Bank, Friendswood, Texas , the sum of
DOLLARS ($ ) , in
lawful money of the United States of America, being the
interest due that day on $700 ,000 CITY OF FRIENDSWOOD,
TEXAS , GENERAL OBLIGATION BOND, SERIES 1974 , dated
September 1 , 1974 , Bond No. .
City Secretary Mayor
* (NOTE TO PRINTER: The expression in the first
parentheses of the above coupon is to be in-
cluded only in those coupons affixed to Bonds
Nos . 55 to 140 , both inclusive , which mature
on March 1 , 1993 , of thereafter. )
X
That the bonds authorized herein being a public security,
which , under the laws of the State of Texas , is required to be
registered by the Comptroller of Public Accounts of the State of
Texas ; accordingly, there shall be printed on the back of each of
said bonds substantially the following certificate , which as to
the registration of each of said bonds by the Comptroller of
Public Accounts of the State of Texas shall be manually signed by
said Comptroller or by a Deputy designated in writing to act - for
said Comptroller :
OFFICE OF THE COMPTROLLER X
X REGISTER NO.
STATE OF TEXAS
I HEREBY CERTIFY that there is on file and of
record in my office a certificate of the Attorney
General of. the State of Texas to the effect that this
bond has been examined by him, as required by law, and
that he finds that it has been issued in conformity
with the Constitution and laws of the State of Texas ,
and that it is a valid and binding obligation upon
said City of Friendswood, Texas , and said bond has
this day been registered by me .
WITNESS MY HAND AND SEAL OF OFFICE AT AUSTIN,
TEXAS , this
Comptroller of Public Accounts
of the State of Texas
XI -
That a special fund to be designated "GENERAL OBLIGATION
BONDS , SERIES 1974 , DATED SEPTEMBER 1, 1974 , INTEREST AND SINKING
FUND , " shall be and the same is hereby created and set aside ,
which fund , when collected, shall be used to pay the interest on
said bonds as the same becomes due and the principal -thereof at
maturity , and for no other purpose .
That to create said fund, there shall be and there is
hereby levied for the year 1974 , a tax on each Ohe Hundred Dollars •
($100) valuation of all taxable property in said City, sufficient
•
to pay the interest falling due on March 1 and September 1 , 1975 ,
on said bonds , and to provide at least two per cent (2%) of the
principal amount of said bonds as a sinking fund , as required by
Article 11 , Section 7 of the Constitution of the State of Texas ;
and that while said bonds , or any of them, or any interest thereon ,
are outstanding and unpaid, there shall be annually levied, assessed
and collected in due time , form and manner, a tax upon all of the
taxable property in said City sufficient to pay the current in-
terest on. said bonds and to cream a sinking fund sufficient to
pay each installment of principal as the same becomes due , or a
sinking fund of 2% whichever is greater, as required by Article
11 , Section 7 of the Constitution of the State of Texas , said tax
to be based on the latest approved tax rolls of said City, with
full allowance being made for delinquencies and costs of collection ;
and an ad valorem tax at said rate and amount is hereby levied,
and is hereby ordered to be levied , against all taxable property
in said City for each year while any of said bonds or interest
coupons appertaining thereto are outstanding and unpaid; and said
tax shall each year be assessed and collected and applied to the
payment of the principal of and interest on said bonds . That the
City Council hereby declares its purpose and intent to hereby pro-
vide and levy a tax which is legal and which is fully sufficient
to pay the interest on said bonds as it falls due and to pay the
principal of said bonds at maturity, which tax will also fully ,
comply each year with Article 11 , Section 7 of the Constitution
of the State of Texas ; and it has determined that there exists
available taxing power and authority in the City for said purposes
which is adequate to permit the levy of a legally sufficient tax
therefor, taking into consideration all otheroutstandingobliga-
tions of said City.
XII
That the City Council of the City of Friendswood, Texas ,
hereby specially covenants and agrees with the original owners
and holders of the bonds and with all subsequent owners and holders
from time to time of said bonds that :
(1) The City Council of said City will promptly proceed
to utilize the proceeds from the sale -of said bonds
(other than accrued interest to the date of delivery)
for the purposes set forth in Section I of this
resolution ; and
(2) No portion of the bonds hereby authorized is issued
as a part of an issue , all or a 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) or obligations other than obli-
gations described in Section 103 (a) (1) of
the Internal Revenue Code (except for a tem-
porary period of time to the extent permitted
by 103 (d) (4) (A) of the Internal Revenue
Code) which may be reasonably expected at the
time of the issuance of such issue to produce.
a over the term of the issue which is
materially higher (taking into account any
discount or premium) that the yield on obli-
gations of such issue , or
(b) to replace funds which were used directly or
indirectly to acquire securities or obligations
described in subparagraph (a) ; and
(3) The City Council of said City will take such action
in accordance with and as required by regulations
prescribed from time to time by the Secretary of
the Treasury or his delegate to carry out the purr
poses of Section 103 (d) of the Internal Revenue
Code so that no portion of the bonds hereby au-
thorized hereby shall be classified as an
"arbitrage bond" within the meaning of Section 103
(d) of the Internal Revenue Code. Specifically, .
but not by way of limitation , said City Council
covenants that it will make no use of the proceeds
of such bonds at any time during the term thereof
which would cause such bonds to be arbitrage bonds
within the meaning of Section 103 (d) of the Code
as interpreted by Sections 1. 103-13 and 1. 103-14
of the regulations promulgated for such purpose
by the United States Treasury Department inter-
preting such Code section.
(4) Said City Council covenants that it will not permit
to be deposited to the credit of the INTEREST AND
SINKING FUND or applied to the payment of the prin-
cipal of or interest on the bonds authorized hereby ,
any proceeds from any grant, donation or income
received from the United States Government, whether
pursuant to agreement or otherwise , if such deposit
or application would result in interest payable on
said bonds being includable in whole or in part in
Gross Income , under Section 103 of the Internal
Revenue Code , for federal income taxes .
XIII
That the Mayor of the City of Friendswood, Texas , is
hereby authorized to take and have charge of all necessary records
pending investigation by the Attorney General of the State of
Texas , and shall take and have charge and control of the bonds
herein authorized pending approval by said Attorney General and
registration by the Comptroller of Public Accounts of the State •
of Texas . That when said bonds have been registered , the said
Comptroller is hereby authorized and instructed to deliver the
bonds to the FROST NATIONAL BANK, SAN ANTONIO, TEXAS , where they
will be taken up and paid for by the purchaser.
XIV
That the bid of TEXAS SECURITIES CORPORATION for the
bonds herein authorized , at the price of par and accrued interest
to date of delivery , having heretofore been accepted , sale of said
bonds is hereby confirned to said purchaser, and the Mayor and
City Secretary of the City of Friendswood are hereby authorized ,
directed and instructed to do all things necessary to deliver said
bonds to said purchaser at the aforesaid price .
XV
That the purchaser above named , having purchased the
bonds herein authorized subject to the final opinion of Messrs.
Dobbins , Howard & Harris , Attorneys at Law, San Antonio , Texas ,
t k ,
approving the validity of such bonds , which approving opinion is
to be dated as of the date of delivery of and payment for the bonds
herein authorized , the printing of a true and correct copy of said
approving opinion on the reverse side of each of said bonds with
an appropriate certificate pertaining thereto executed by the facsimile
signature of the City Secretary of the City of Friendswood , Texas ,
is hereby approved and authorized .
PASSED this , the /FM day of August , 1974 .
„,-/111112
Mayor , ity of Friendswood
ATTEST :
n
City Secretary
(SEAL OF CITY)
APPROVED AS TO FORM:
City Attorney
•
•
•
CERTIFICATE FOR RESOLUTION
•
THE STATE OF TEXAS X
COUNTY OF GALVESTON X
CITY OF FRIENDSWOOD X
•
We , the undersigned Mayor and City Secretary of the City
of Friendswood , Texas , DO HEREBY CERTIFY as follows :
1. On this , the 1 M day of August, 1974 , at 7: 3o
o ' clock P .M. , the City Council of the City of Friendswood, Texas ,
' convened for a eye-J,9-I meeting in the City Hall within said .
City , which meeting was at all times open to the public , and the
•
roll was called of the duly constituted officers and members of
said City Council , namely :
RALPH L. LOWE MAYOR
EDWARD 0. ZEITLER COUNCILMAN
MILTON L . .WINDLER COUNCILMAN
• WILLIAM B. PATTON, SR. COUNCILMAN
RALPH G. GONZALEZ COUNCILMAN
RICHARD L. HAKEN- COUNCILMAN
BENNY R. BAKER COUNCILMAN
AND
JAMES MORGAN CITY MANAGER
BOBBIE C . HENRY CITY SECRETARY
•
and all of said ersons were sent with the exception of the
p p
following : Ind-TN) L • Gilir eR
thus constituting a quorum. Whereupon , among other business , the .
following was transacted at said meeting : A written RESOLUTION
AUTHORIZING THE ISSUANCE OF $700 ,000 CITY OF FRIENDSWOOD , .TEXAS ,
GENERAL OBLIGATION BONDS , SERIES 1974 , was introduced for the con-
sideration of the City Council and read in full. It was then duly
• . moved and seconded that said resolution be adopted; and, after
due discussion , said motion , carrying with it the adoption of said
resolution , prevailed and carried by the following vote :
AYES : All members of said City Council •
shown present above voted "AYE"
' NOES : None . . •
2 . , That a true , full and correct copy of the aforesaid. •
resolution adopted at the meeting described in the above and fore-
going paragraph is attached to and follows this certificate ; that
said resolution has been duly recorded in said Council ' s •minutes
of said meeting; that the above and foregoing paragraph is a true ,
full and correct excerpt from the minutes of said meeting pertain-
. ing to the adoption of said resolution ; that the persons named in
the above and foregoing paragraph are the duly chosen , qualified
and acting officers and members of said City Council as indicated
therein ; that each of the officers and members of said City Council.
was duly and sufficiently notified , officially and personally, in
advance , of the time , place and purpose of said meeting and that
•
said resolution would be considered for adoption at said meeting;
that each of said officers and members consented , in advance-, to
the holding of said meeting for such purpose ; that said meeting
was open to the public as required by law; and that public notice •
of the time , place and purpose of said meeting was given as -re-
quired by law.
- ., ,, WITNESS OUR HANDS AND THE SEAL OF SAID CITY this , the
q/1J_ �r4a of August , 1974 .
Cit-y_,SE�c're�ary Mayor
•
'(SE-AL 7;OFJ tLTY) •