99-45 O - Issuance of Certificates of Obligation TOWN OF PROSPER, TEXAS ORDINANCE NO. 9 9-4 5
AN ORDINANCE ADOPTED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS AUTHORIZING THE ISSUANCE OF A CERTIFICATE OF
OBLIGATION IN THE ORIGINAL PRINCIPAL AMOUNT OF $100,000.00;
AUTHORIZING THE MAYOR OF THE TOWN OF PROSPER, TEXAS TO EXECUTE,
ON BEHALF OF THE TOWN COUNCIL OF THE TOWN OF PROSPER,TEXAS, THE
CERTIFICATE OF OBLIGATION; PROVIDING FOR THE CERTIFICATE TO BEAR
INTEREST AND TO BE PAYABLE AS SET FORTH HEREIN; PROVIDING FOR THE
USE OF THE PROCEEDS FROM THE SALE OF THE CERTIFICATE FOR THE
COMPLETION AND INSTALLATION OF A NEW WATER WELL FOR THE TOWN
OF PROSPER WATER SUPPLY SYSTEM;PROVIDING FOR THE ESTABLISHMENT
OF AN INTEREST AND SINKING FUND FOR THE REPAYMENT OF THE
CERTIFICATE; AND PROVIDING FOR AN EFFECTIVE DATE OF THIS
ORDINANCE.
WHEREAS, the Town Council of the Town of Prosper, Texas ("Town Council") has
heretofore determined that the lack of water supply in its present system necessitated the drilling,
completion and installation of a new water well to supplement the current capacity of the Town of
Prosper, Texas' ("Prosper")water supply system; and
WHEREAS, the Town Council has heretofore entered into a contract for the drilling,
I completion and installation of such new water well (the"Contract") after having complied with the
competitive bidding provisions and the notice requirements of the CERTIFICATE OF
OBLIGATION ACT, Subchapter C of Chapter 271, Local Government Code; and
WHEREAS, subsequent to the letting of the Contract, the Town Council determined that it
would have insufficient funds on hand with which to pay a portion of the Contract obligation; and
WHEREAS, the Town Council has determined that it is in the best interests of Prosper to
authorize and issue a certificate of obligation in the amount of$100,000.00, the proceeds of which
will be used to pay the balance of Prosper's obligation under the Contract; and
WHEREAS,the Town Council desires to establish an appropriate interest and sinking fund
for the repayment of the certificate, as well as other provisions; and
)441, WHEREAS, all notice requirements of Section 271.049 of the Certificate of Obligation Act
have been complied with prior to consideration and passage of this ordinance by the Town Council.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN
OF PROSPER, TEXAS:
ORDINANCE AUTHORIZING ISSUANCE OF A CERTIFICATE OF OBLIGATION FOR WATER WELL-Page 1
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SECTION 1: Authorization of Issuance of Certificate of Obligation. The Town Council of
the Prosper hereby authorizes the issuance of a certificate of obligation (the "Certificate") in the
principal amount of One Hundred Thousand and No/100Ths Dollars($100,000.00)upon compliance
with the provisions of the Subchapter C of Chapter 271, Local Government Code,to be dated as of
the actual date of issuance, said Certificate to bear interest at the rate of Five and One-Half Percent
(5.5%)per annum,being payable in one hundred,twenty(120)equal amortized monthly installments
of$1,085.62 each, with the first installment being due and payable on the first day of the month
following the month in which the Certificate is issued and a like and similar installment being due
and payable on the first day of each month thereafter until paid in full. The Certificate shall be
prepayable at any time without penalty.
SECTION 2: Authorization to Execute the Certificate of Obligation. The Mayor of the
Town of Prosper,Texas,is hereby authorized to execute,on behalf of the Town Council of the Town
of Prosper, Texas, the Certificate which shall be issued in the form attached hereto as Exhibit"A"
and incorporated herein for all purposes.
SECTION 3: Use of proceeds. The proceeds from the sale of the certificate of obligation
shall be used solely for the payment of Prosper's obligation under the contract between Prosper and
Stritmatter Construction&Irrigation, and any funds remaining from the sale of the certificate after
payment of Prosper's obligations under the contract shall be used to prepay the outstanding balance
of the certificate of obligation.
SECTION 4: Establishment of Interest and Sinking Fund. There is hereby established an
interest and sinking fund into which shall be placed on an annual basis an amount of money from
the tax and general revenues of Prosper sufficient to pay the monthly installment obligations under
the certificate for such annual period.
SECTION 5: Effective Date. This ordinance shall become effective immediately upon its
passage.
DULY PASSED AND APPROVED BY THE O COUNCIL OF THE TOWN OF
PROSPER, TEXAS, this /7 day of cc_ u..s-i , 99 .
STE OFFMAN
Mayor, City of Prosper
ATTEST: APPROVED AS TO FORM:
" bed
SH E A -SON- Abernathy, Roeder, Boyd & Joplin, P.C.
City Secretary City Attorneys
ORDINANCE AUTHORIZING ISSUANCE OF A CERTIFICATE OF OBLIGATION FOR WATER WELL-Page 2
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EXHIBIT "A"
U
CERTIFICATE OF OBLIGATION
OF THE
TOWN OF PROSPER, TEXAS
Date: Certificate No.
ONE HUNDRED THOUSAND AND NO/100THS DOLLARS
$100,000.00
The Town of Prosper,Texas ("Prosper"), a general law city organized under the laws of the
State of Texas, for value received,promises to pay to PROSPER STATE BANK the principal sum
of One Hundred Thousand and No/100ths Dollars ($100,000.00), together with interest on the
outstanding balance thereof at the rate of five and one-half percent(5.5%)per annum, such principal
and interest being repayable in one hundred,twenty(120) equal amortized monthly installments of
$1,085.62, each, the first of which monthly installments shall be due and payable on
, 1999, and a like and similar installment shall be due and payable of the same
day of each month thereafter until the principal together with accrued and unpaid interest are paid
in full.
The payments hereunder shall be made from the established interest and sinking fund into
which shall be placed, on an annual basis, an amount of money from the tax and general revenues
of Prosper sufficient to pay the monthly installment obligations under this Certificate of Obligation
for such annual period, and the same is hereby pledged to secure the payment of the Certificate of
Obligation.
Prosper retains the right to prepay the principal hereof, in whole or in part, at any time
without penalty. Upon any partial prepayment of principal,the monthly installment amount payable
shall be adjusted to an amount sufficient to amortize the remaining outstanding principal balance,
together with interest at the rate stated herein, over the number of months remaining from the initial
one hundred, twenty(120).
IN WITNESS WHEREOF, the Town of Prosper, Texas, has caused this Certificate of
Obligation to be signed by its Mayor and attested by its Secret , this /1 day of August, 1999.
TOWN SP , T 2
By:
Step ffman,Mayor
At
Shlrly Ja son City 6cretary
ORDINANCE AUTHORIZING ISSUANCE OF A CERTIFICATE OF OBLIGATION FOR WATER WELL-Page 3
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CERTIFICATE OF OBLIGATION
OF THE
TOWN OF PROSPER, TEXAS
Date: Certificate No.
ONE HUNDRED THOUSAND AND NO/100THS DOLLARS
$100,000.00
The Town of Prosper, Texas ("Prosper"), a general law city organized under the laws of
the State of Texas, for value received,promises to pay to PROSPER STATE BANK the
principal sum of One Hundred Thousand and No/100ths Dollars ($100,000.00), together with
interest on the outstanding balance thereof at the rate of five and one-half percent (5.5%)per
annum, such principal and interest being repayable in one hundred, twenty(120) equal amortized
monthly installments of$1,085.62, each,the first of which monthly installments shall be due and
payable on , 1999, and a like and similar installment shall be due and
payable of the same day of each month thereafter until the principal together with accrued and
unpaid interest are paid in full.
4
The payments hereunder shall be made from the established interest and sinking fund into
which shall be placed, on an annual basis, an amount of money from the tax and general revenues
of Prosper sufficient to pay the monthly installment obligations under this Certificate of
Obligation for such annual period, and the same is hereby pledged to secure the payment of the
Certificate of Obligation.
Prosper retains the right to prepay the principal hereof, in whole or in part, at any time
without penalty. Upon any partial prepayment of principal, the monthly installment amount
payable shall be adjusted to an amount sufficient to amortize the remaining outstanding principal
balance,together with interest at the rate stated herein, over the number of months remaining
from the initial one-hundred, twenty(120).
IN WITNESS WHEREOF, the Town of Prosper, Texas,has caused this Certificate of
Obligation to be signed by its Mayor and attested by its Secretary,this /7 day of August, 1999.
TOWN 0 OS.''ER, TEXA.
By: AY _ /
N''A offinan,Ma Ors
s
Altai• t �
Shirley Ja so City Secretary
CERTIFICATE OF OBLIGATION-Sole Page
ABERNATHY
.--ROEDER
BOYD '
JO PLI N • ♦ ♦ Metro 214b544.4000Vard,Suite 300•P.O.Fax 214.544 4040 Box 1210•McKinney,Texas 75070-1210
ATTORNEYS AT LAW
REBECCA H.BREWER rbrewer@abemathy-law.com
Direct Dial 214.544.4008
July 30, 1999
Ms. Shirley Jackson
City Secretary
P.O. Box 307
Prosper, Texas 75078
RE: Certificate of Obligation; water well
Dear Shirley:
Enclosed please find the following regarding the above-referenced matter:
1. the Ordinance Authorizing Issuance of a Certificate of Obligation for Water Well (two
(2) originals); and
2. the Certificate of Obligation(two (2) originals).
Also, the agenda item for the special called meeting on Tuesday,August, 17, 1999 would be as
follows:
# . Consider and act upon an ordinance authorizing the issuance of a Certificate of
Obligation in the original principal amount of $100,000.00 for the drilling,
completion and installation of a new water well.
Upon the Council's passage of the Ordinance, please forward one (1) executed copy of the
Ordinance and the Certificate of Obligation to me so that I can forward these documents to the Attorney
General in accordance with the Local Government Code.
If you have any questions,please feel free to contact me.
0
Very truly yours,
eidga
Re ecca re
ends.
RHB
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