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O-78-561 - 9/14/1978A/' T' / CERTIFICATE FOR ORDINANCE AUTHORIZING THE ISSUANCE OF INTEREST BEARING CERTIFICATES OF OBLIGATION THE STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF ROUND ROCK We, the undersigned officers of said City, hereby certify es follows: • • 1. /MEETING and the nembers The City Council of said City convened in SPECIAL ON THE 14TH DAY OF SEPTEMBER, 1978, at the City Hall, roll was called of the duly constituted officers and of said City Council, to -wit: ' Raymond M. Litton, Mayor 1 Robert G. Griffith; Mayor Pro -Tem Joanne Land, City Secretary Larry Tonn and all of said persons were present, except the following absentees: fid/ ,':thus constituting a quorum. Whereupon, among other business, the following was transacted at said Meeting: a written ORDINANCE AUTHORIZING THE ISSUANCE OF INTEREST BEARING CERTIFICATES OF OBLIGATION Las duly introduced for the consideration of said City Council ;and read in full. It was then duly moved and seconded that Said Ordinance be passed; and, after due discussion, said motion, carrying with it the passage of said Ordinance, prevail- jed and carried by the following vote: AYES: All members of said City Council shown present above voted "Aye". Mike Robinson Pete Correa Tom Lopez Steve Pena NOES: None. 2. That a true, full and correct copy of the aforesaid Ordinance passed at the Meeting described in the above and fore- going paragraph is attached to and follows this Certificate; that said Ordinance has been duly recorded in said City Council �nutes of said Meeting; that the above and foregoing paragraph !is a true, full and correct excerpt from said City Council's kninutes of said Meeting pertaining to the passage of said jOrdinance; 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 land sufficiently notified officially and personally, in advance, of the time, place and purpose of the aforesaid Meeting, and that said Ordinance would be introduced and considered for /passage at said Meeting, and each of said officers and members 'consented, in advance, to the holding of said Meeting for such urpose; and that said Meeting was open to the public, and ublic notice of the time, place and purpose of said meeting Was given, all as required by Vernon's Ann. Civ. St. Article 6252-17. 3. That the Mayor of said City has approved and hereby approves the aforesaid Ordinance; that the Mayor and the City Secretary of said City have duly signed said Ordinance; and 'that the Mayor and the City Secretary of said City hereby de- clare that their signing of this Certificate shall constitute ;the signing of the attached and following copy of said Ordin- ance for all purposes. SIGNED AND SEALED the 14th day of September,1978. 'Ci.y Secretary SEAL ORDINANCE NO. AUTHORIZING THE ISSUANCE OF INTEREST BEARING CERTIFICATES OF OBLIGATION THE STATE OF TEXAS COUNTY OF WILLIAMSON . CITY OF ROUND ROCK WHEREAS, the City Council deems it advisable to issue ;Certificates of Obligation to be sold for cash for improvements and extensions to the City's Waterworks System, to -wit: construct, improve and equip wells, lines, pumps, ground storage reservoirs and facilities; and for paying all or a portion of the legal, fiscal and engineering fees in connection with this project; and WHEREAS, the Certificates of Obligation hereinafter authorized and designated are to be issued and delivered pursuant to Article 2368a.1, V.A.T.C.S.; and WHEREAS, the City Council has heretofore, on the 10th day of August, 1978, passed an ordinance authorizing and directing the city secretary to give notice of intention to issue Cer- tificates of Obligation; and I WHEREAS, said notice has been duly published in the Round Rock Leader, which is a newspaper of general circulation in said City, in its issues of August 31, 1978 and September 7, 1978; and WHEREAS, The City received no petition from the qualified electors of the City protesting the issuance of such Certifi- cates of Obligation; and WHEREAS, it is considered to be to the best interest of the City that said interest bearing Certificates of Obliga- tion of even denominations in the amount of $5,000 be issued. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS: 1. That the City's Certificates of Obligation, to be called the "CITY OF ROUND ROCK, TEXAS CERTIFICATES OF OBLIGA- TION, shall be issued under and by virtue of the Constitution and laws of the State of Texas, for the purpose of paying all or a portion of the City's contractual obligations for improvements and extensions to the City's Waterworks System, to -wit: construct, improve and equip wells, lines, pumps, ground storage reservoirs and facilities; and for paying all or a portion of the legal, fiscal and engineering fees in connection with this project. 2. That said Certificates of Obligation shall be dated September 1, 1978, shall be numbered consecutively from 1 through 60, both inclusive, shall be in the denomination of I$5,000 each, aggregating $300,000, and shall become due and ayable on February 1 of each of the years as follows: YEARS AMOUNTS YEARS AMOUNTS 1980 $ 5,000 1988 $25,000 1981 5,000 1989 30,000 1982 5,000 1990 30,000 1983 10,000 1991 30,000 1984 10,000 1992 30,000 1985 20,000 1993 30,000 1986 20,000 1994 30,000 1987 20,000 3. That said Certificates of Obligation shall bear interest at the rate of 5.65% per annum, with said interest evidenced by interest coupons which shall appertain to said Certificates of Obligation, and which shall be payable in the manner provided and on the dates stated in the FORM OF. CERTIFICATE set forth in this Ordinance. 4. That said Certificates of Obligation and interest coupons shall be issued, shall be payable, shall have the characteristics, and shall be signed and executed (and said Certificate shall be sealed), all as provided, and in the manner indicated, in the FORM OF CERTIFICATE set forth in this Ordinance. 5. That the form of said Certificates of Obligation, 'inclincluding the form of Registration Certificate of the Comptroller uding Public Accounts of the State of Texas to be printed and 'endorsed on each of said Certificates, and the form of the aforesaid interest coupons which shall appertain and be attached initially to each of said Certificates, shall be, respectively isubstantially as follows: FORM OF CERTIFICATE NO. $5,000 UNITED STATES OF AMERICA • STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF ROUND ROCK, TEXAS CERTIFICATE OF OBLIGATION SERIES 1978 ON FEBRUARY 1, 19 , THE CITY OF ROUND ROCK, IN THE COUNTY OF WILLIAMSON, STATE OF TEXAS, promises to pay to bearer hereof jthe principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from the date hereof, at the rate of 5.65% per annum, evidenced by interest coupons payable n August 1, 1979, and semiannually thereafter on each February 11 and August 1, while this Certificate is outstanding. THE PRINCIPAL of this Certificate of Obligation and the interest coupons appertaining hereto shall be payable to bearer, lin lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this Certificate of Obligation or proper interest coupons at the following, which shall constitute and be defined as the "Paying Agent" for this Series of Certificates: MERCANTILE NATIONAL BANK AT DALLAS, DALLAS, TEXAS THIS CERTIFICATE OF OBLIGATION is one of a series dated as of September 1, 1978, issued in the principal amount of $300,000, for the purpose of paying all or a portion of the City's contractual obligations for improvements and extensions o the City's contractual obligations for improvements and ex- tensions to the City's Waterworks System, to -wit: construct, improve and equip wells, lines, pumps, ground storage reservoirs and facilities; and for paying all or a portion of the legal, fiscal and engineering fees in connection with this project. 6. That a special fund or account, to be designated the ity of Round Rock, Texas Certificates of Obligation Series 1978 nterest and Sinking Fund, is hereby created and shall be es- ablished and maintained by the City at an official depository Sank of said City. Said Interest and Sinking Fund shall be ept separate and apart from all other funds and accounts of Maid City, and shall be used only for paying the interest on d principal of said Certificates of Obligation. All ad alorem taxes levied and collected for and on account of said ertificates of Obligation shall be deposited, as collected, to the credit of said Interest and Sinking Fund. During each sear while any of said Certificates of Obligation or interest fioupons appertaining thereto are outstanding and unpaid, the City Council of said 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 pay the interest on said Cer-' tificates of Obligation as such interest comes due, and to provide and maintain a sinking fund adequate to pay the principal Of such Certificates of Obligation as such principal matures (but never less than 2% of the original amount of said Certifi- Oates of Obligation as a sinking fund each year); and said tax shall be based on the latest approved tax rolls of said City, with full allowances being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against 11 taxable property in said City, for each year while any of laid Certificates of Obligation 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 $axes sufficient to provide for the payment of the interest do and principal of said Certificates of Obligation, as such interest comes due and such principal matures, are hereby pledged irrevocably for such payment, within the limit prescribed by law. 7. Said Certificates of Obligation additionally shall be payable from and secured by the revenues of the City's Water- Npforks System remaining after payment of all operation and main- enance expenses thereof, and all debt service, reserve and Other requirements in connection with all of the City's revenue bonds (now or hereafter outstanding) which are payable from and secured by a first lien on all or any part of the net evenues of the City's Waterworks System, with the aforesaid remaining revenues being hereinafter called "Surplus Revenues". 'he City shall deposit all Surplus Revenues to the credit of the Interest and Sinking Fund created pursuant to Section 6. Notwithstanding the requirements of Section 6, if Surplus Revenues are actually on deposit in the Interest and Sinking Fund in advance of the time when ad valorem taxes are scheduled to be levied for any year, then the amount of taxes which other wise would have been required to be levied pursuant to Section Gfmay be reduced to the extent and by the amount of the Surplus Revenues then on deposit in the Interest and Sinking Fund. +� 8. That the Mayor and the City Secretary are hereby ordered to do any and all things necessary to accomplish the transfer of monies to the Interest and Sinking Fund of this issue in ample time to pay such items of principal and interest. 9. That the Mayor of said City is hereby authorized to have control of said Certificates of Obligation and all neces- sary records and proceedings pertaining to said Certificates of Obligation 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 Cer- tificates said Comptroller of Public Accounts (or a deputy if it ii ii designated in writing to act for said Comptroller) shall manual- ly sign the Comptroller's Registration Certificate printed and endorsed on each of said Certificates of Obligation, and the 'seal of said Comptroller shall be impressed or placed in fac- 'simile, on each of said Certificates of Obligation. 10. That the City covenants to and with the purchasers of the Certificates of Obligation that it will make no use of !the proceeds of the Certificates of Obligation at any time throughout the term of this issue of Certificates of Obligation ;which, if such use had been reasonably expected on the date }of delivery of the Certificates of Obligation to and payment I, for.the Certificates of Obligation by the purchasers, would !have caused the Certificates of Obligation to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations or rulings pertain- ing thereto; and by this covenant the City is obligated to comply with the requirements of the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City further covenants that the proceeds of the Certificates of Obligation twill not otherwise be used directly or indirectly so as to cause all or any part of the Certificates of Obligation to be Oor become arbitrage bonds within the meaning of the aforesaid Section 103(c), or any regulations or rulings pertaining thereto. 11. That the Certificates of Obligation are hereby sold to the Texas Water Development Board for cash, at a price equivalent to the Texas Water Development Board's statutory lending rate plus accrued interest to date of delivery, and that the delivery of all or a portion of such Certificates of Obligation shall be authorized by its City Council after re- ceipt of bids for the construction of the project to be financed with such Certificates of Obligation. 12. That the City shall render a final accounting to the Texas Water Development Board, in reference to the total cost incurred by the City, for the improvements and extensions to the City's Waterworks System. • 1 13. That the Cityshall use any surplus proceeds from the Certificates of Obligation remaining after completion of the improvements and extensions to the City's Waterworks System, for the purchase of Certificates of Obligation owned by the Texas Water Development Board. 14. That a copy of the City's annual audit report shall !be delivered to the Texas Water Development Board as long as the State of Texas owns any of the Certificates of Obligation. 15. That it is hereby officially found and determined !that a case of emergency or urgent public necessity exists which requires the holding of the meeting at which this Ordinance is passed, such emergency or urgent public necessity being that the proposed Certificates of Obligation are required as soon as possible and without delay for necessary and urgently needed public improvements; and that said meeting was open to the public and public notice of the time, place and purpose of said meeting was given, all as required by Vernon's Ann. Civ. St., Article 6252-17. 16. That this Ordinance shall become effective upon its passage since this is an authorization in reference to financing for capital improvements. IT IS HEREBY certified, recited, and covenanted that this Certificate of Obligation has been duly and validly author- ized, issued and delivered; that all acts, conditions, and' ;things required or proper to be performed, exist and be done precedent to or in the authorization, issuance and delivery of this Certificate of Obligation have been performed, existed land been done in accordance with law; that this Certificate of Obligation is a general obligation of said 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 Certificate of Obligation, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in said City, and have been pledged irrevocably for such payment, with- in the limit prescribed by law; and that this Certificate of Obligation is additionally secured by and payable from the revenues of the City's Waterworks. System remaining after payment of all operation and maintenance expenses thereof, and all debt service, reserve and other requirements in connection with all of the City's revenue bonds (now or hereafter outstanding) which are payable from and secured by a first lien on all or any part bf the net revenues of the City's Waterworks System. IN WITNESS WHEREOF, this Certificate and the interest coupons appertaining hereto have been signed with the facsimile signature of the Mayor of said City and countersigned with the facsimile signature of the City Secretary of said City, and the official seal of said City has been duly impressed, or placed in facsimile on this Certificate. xxxx xxxx City Secretary May" or FORM OF COMPTROLLER'S REGISTRATION CERTIFICATE OMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Certificate of Obligation has Oeen examined, certified as to validity and approved by the ,Attorney General of the State of Texas, and that this Certificate of Obligation has been registered by the Comptroller of Public accounts of the State of Texas. NO. WITNESS my signature and seal this Comptroller of Public Accounts of the State of Texas FORM OF INTEREST COUPON ON THE CITY OF ROUND ROCK, IN THE COIJNTY OF WILLIAMSON, STATE OF TEXAS, promises to pay to bearer the amount shown on this interest coupon in lawful money of the United States of America, Without exchange or collection charges to the bearer, upon presentation and surrender of this interest coupon at MERCANTILE NATIONAL BANK AT DALLAS, DALLAS, TEXAS, said amount being in- terest due that day on the Certificate of Obligation bearing the number hereinafter designated, of that issue of CITY -OF ROUND ROCK, TEXAS CERTIFICATES OF OBLIGATION, SERIES 1978, DATED September 1, 1978. Certificate No. _ xxxx City Secretary Mayor