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HomeMy WebLinkAbout904 09-23-1986ORDINANCE NO. 904 AN ORDINANCE approving and authorizing the execution of a Personal Property Finance Contract pertaining to the acquisition of personal property; providing for the payment of such Contract by levying a continuing direct annual ad valorem tax for the payment of payments thereunder; pledging certain funds, revenues and taxes to the payment of the contract obligation; resolving other matters incident and related to the payment of such Contract; and declaring an emergency. WHEREAS, the City Council of the City of Euless, Texas (the "City") has determined that it is necessary to provide for the use, acquisition and purchase of certain personal property for use in its operations; and WHEREAS, to facilitate the acquisition of such property, the City Council has determined that it is desirable to enter into a Personal Property Finance Contract with First Southwest Company relating to the acquisition of such property (the "Contract "); now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EULESS, TEXAS: SECTION 1: Findings; Execution and Delivery of Contract. It is hereby found and determined that: (a) all of the property to be acquired under the Contract is personal property, and during the term of the Contract is to remain personal property; (b) the Contract, including its form as a personal property finance contract, and the terms and conditions thereof are deemed to be appropriate by this governing body; (c) the Contract shall be made payable from revenues, funds, and taxes, as permitted by Section 4(a) of the Public Property Finance, Act, Article 2368a.2 V.A.T.C.S. (the "Act "); (d) the property to be acquired pursuant to the Contract will not be used in the trade or business of any per- son other than the City and none of the principal or interest on the Contract will be paid, directly or indirectly, by pay- ments from any person other than the City; (e) the City is a governmental unit with general taxing powers and the Contract will enable the City to finance operations of or facilities for the City (i.e. personal proper- ty required by the City) and the aggregate face amount of all governmental purpose obligations the interest on which is ex- empt from federal income tax issued by or on behalf of the City in 1986 will not exceed $5,000,000; and (f) the Contract is a Qualified Tax - Exempt Obligation for purposes of the disallowance rule with respect to interest expense of financial institutions. The execution and delivery of the Contract by the Mayor, substantially in the form attached hereto as Exhibit "A ", to facilitate the use, acquisition and purchase of the personal property described in Exhibit A to the Contract, all as autho- rized pursuant to the Act, is hereby authorized. The Mayor, City Secretary, City Manager, and Director of Finance, any one of the foregoing officials or all, are hereby authorized and directed to furnish and execute such documents relating to the City and its financial affairs as may be necessary for the delivery of the Contract, the approval of the Attorney General and registration by the Comptroller of Public Accounts. The City Manager and the Director of Finance, either or both, are authorized to take such action as may be necessary to qualify the interest on the Contract as interest which is excludable from the gross income of the recipient thereof under the Internal Revenue Code. Specifically, without limitation, the City Manager and Director of Finance are delegated the power, acting on behalf of the City, to make representations and to make covenants to bind the City regarding the use and ownership of the property to be acquired, the use of the proceeds ad- vanced to the City pursuant to the Contract, the investment of any funds resulting from or pledged to the payment of the Contract and the yield on the Contract; insofar as such repre- sentations and covenants are required by law in order for the interest on the Contract to be excludable from the gross income of the recipient thereof under the Internal Revenue Code. SECTION 2: Levy of Taxes. To provide for the payment of the "Debt Service Requirements" of the Contract being (i) the interest on the Contract and (ii) a sinking fund for pay- ment of the principal on the Contract as specified on Exhibit B to the Contract or a sinking fund of 2% (whichever amount is the greater), there is hereby levied, and there shall be annu- ally assessed and collected in due time, form, and manner, a tax on all taxable property in the City, within the limitations prescribed by law, and such tax hereby levied on each one hun- dred dollars' valuation of taxable property in the City for the Debt Service Requirements of the Contract shall be at a rate from year to year as will be ample and sufficient to provide funds each year to pay the principal of and interest on said -2- Contract until paid; full allowance being made for delinquen- cies and costs of collection; the taxes levied, assessed, and collected for and on account of the Contract shall be accounted for separate and apart from all other funds of the City and shall be deposited in the "Special 1986 Personal Property Finance Contract Fund" (the "Interest and Sinking Fund ") to be maintained at an official depository of the City's funds; and such tax hereby levied, and to be assessed and collected annu- ally, is hereby pledged to the payment of the said Debt Service Requirements. Proper officers of the City are hereby authorized and directed to cause to be transferred to First Southwest Company, from funds on deposit in the Interest and Sinking Fund, amounts sufficient to fully pay and discharge promptly each installment of interest and principal of the Contract as the same accrues or comes due; such transfers of funds to be made in such manner as will cause collected funds to be deposited with First Southwest Company on or before each principal and interest payment date for the Contract. SECTION 3: Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Article 6252 -17, Vernon's Texas Civil Statutes, as amended. SECTION 4: Emergency. That the public importance of this measure and the fact that the acquisition of the personal property pursuant to the Contract herein authorized are urgent- ly needed and should be acquired at the earliest possible date to preserve the health and safety of the City and its citizens constitutes and creates an emergency relating to the immediate preservation of the public peace, health and safety of the City and its citizens, requiring that the Charter provision that all ordinances and the descriptive caption thereof shall be read at two regular Council meetings be suspended and requiring that this ordinance be passed and take effect as an emergency mea- sure, and such rule is accordingly suspended and this ordinance is passed as an emergency measure and shall take effect and be in full force from and after its passage. -3- PASSED AND ADOPTED, this September 23, 1986. ATTEST: i City.Secretary (City Seal) CITY OF EULESS, TEXAS APPROVED :, City Attorney, City of Euless, Texas 2 2 4 8 E -4-