Loading...
HomeMy WebLinkAboutO-259A - ORDINANCE NO. 259 AN ORDINANCE AUTHORIZING THE ISSUANCE OF $200,000 PRINCIPAL AMOUNT OF PUBLIC IM- PROVEMENT GEPIERAL OBLIGATION BONDS OF THE CITY OF FAIRHCPE TO BE DATED APRIL 13 1959 BE IT ORDAINED by the City Council of the City of Fairhope in the State of Alabama as follows: Section 1. Definitions. The following words and phrases shall have the following respective meanings herein: "City" means the municipal corporation of Fairhope in the State of Alabama, and any municipal corporation re- sulting from any merger or consolidation thereof with another municipal corporation. "Council" means the igoverning body of the city as it may at any time be constituted. "Improvement ordinance" means Ordinance No. 254 of the city adopted by the council on July 14, 1958, as amended by unnumbered ordinances adopted by the council on July 319 1958 and September 8, 1958, which as so amended was ratified and confirmed by resolution adopted by the council on November 10, 1958. "The improvements" means the improvements provided for in the improvement ordinance. "The bonds" means those issued hereunder. "Redemption date" means the date fixed in the pub- lished notice of redemption for the redemption of any bonds prior to their maturity. "redemption price" means the price at which any of the bonds called for redemption prior to their maturity may be redeemed on the redemption date. "Newspaper" means a newspaper printed in the English language and customarily published at least five days during each calendar week. "Coupons" means those issued in pursuance hereof and evidencing the interest on the applicable bonds. "Holder" when used in conjunction with bonds or coupons means the person who is in possession and the appar- ent owner of the designated item. Definitions include both singular and plural. Pronouns include both singular and plural and cover all genders. Section 2. Findings Respecting Improvements. The city has heretofore authorized the construction of improvements under the provisions of the improvement ordi- nance, which has been confirmed and made final by a resolu- tion duly adopted by the council. The work of constructing the improvements has not been completed and no bonds have heretofore been issued to pay the costs thereof and no notes or other evidence of indebtedness have heretofore been issued in anticipation of the sale of the bonds. The engineer for the city has heretofore estimated, and the council does hereby estimate, that the total cost of constructing the improvements, computed in accordance with the provisions of Section 519 of Title 37 of the Code of Alabama of 1940, as amended, will exceed $200,000. It will be necessary for the city to finance the construction of the improvements during the course of construction thereof, and the council has determined and does hereby declare that it would be to the advantage of the city if such financing should now be accompanied by the sale and issuance of the bonds at this time for the purpose of financing the said costs. Section 3. Authorization of the Bonds. Pursuant to the applicable provisions of the constitution and laws of the State of Alabama, including particularly Chapter 6 of Title 37 of the Code of Alabama of 1940, as amended, and for the purpose of providing funds to pay the cost of constructing the improvements, there are hereby authorized to be issued by the city the bonds hereinafter described. Section 4. General Description of the Bonds. The bonds shall be designated Public Improvement General Obligation Bonds, shall consist of two hundred coupon bonds in the aggregate principal amount of $200,000, shall be numbered from 1 to 200, inclusive, shall be in the princi- pal amount of $1,000 each, shall be dated April 1, 1959, and shall mature on April 1 as follows: Bond Numbers Year of Aggregate Principal both inclusive) Maturity Amount Maturine _ 1 to 20 1960 $ 20,000 21 to 40 1961 20,000 41 to 60 1962 209000 61 to 80 1963 20,000 81 to 100 1964 207000 101 to 120 1965 209000 121 to 140 1966 209000 141 to 16o 1967 209000 161 to 180 1968 209000 181 to 200 1969 20,000 Section 5. Interest Provisions and Place of Payment. The bonds shall bear interest from ,their date until their respective maturities at the per annum rate of 3 1/8% 1960-1964 inclusive 3% 1965-1966 3.1/8% 1967-1969 46 Such interest shall be payable semiannually on April 1 and October 1 until and at the respective maturities of the bonds, and shall be evidenced by separate interest coupons attached thereto. Both the bonds and the cou ons shall bear interest at the rate of six per centum (6%% per annum after their respective maturities. The bonds and the coupons shall be payable in lawful money of the United States of America at the principal office of The Merchants National Bank of Mobile, in the City of Mobile in the State of Alabama. Section 6. Optional Redemption Provisions. While the city is not in default in the payment of the principal of or interest on any of the bonds, any of the bonds may be redeemed by the city at its option on any interest payment date on and after October 1, 1959, as a whole or in part and if in part then in their inverse numerical order, at a redemption price for each bond redeemed equal to its face value plus accrued interest thereon to the redemption date -and a premium equal to one year's interest thereon if'the redemption date is on or before April 1, 1963,. and a premium equal t six months' interest thereon if the redemption date is sub- sequent to April 1, 1963. Any such redemption shall be effected in the following manner: (a) The council shall adopt a resolu- tion containing the following: (1) A call for redemption, on a specified date when they are by their terms subject to redemption, of bonds having stated numbers; and (2) A finding that the city is not in default in the pay- ment of the principal of or interest on any of the bonds. W Not less than thrity days prior to the redemption date, the city shall cause to be published at least one time in a newspaper published in the City of Mobile, Alabama, a notice stating the following: that bonds bearing stated numbers (which shall be the numbers specified in the resolut16n required in subsection (a) of this section) have been called for redemption and will become due and payable at the applicable redemption price on a specified redemption date (which shall be the date provided for such redemption in the resolution required in subsection (a) of this section); and that all interest thereon will cease after the redemption date. (c) On or prior to the redemption date the city shall notify the bank at which the bonds shall be payable of the city's compliance with the requirements of the preceding subsec- tions (a) and (b) of this section, and shall further make available at said bank the total redemption price of the bonds so called. Upon compliance b the city with the requirements contained in subsections (a�, (b) and (c) of this section, and if the city is not on the redemption date in default in payment of the principal of and interest on the bonds, the bonds so called for redemption shall become due and payable on the redemption date at the redemption price, and interest thereon shall thereafter cease. The bank at which the bonds are payable shall not be required to pay any coupon maturing on the redemption date which is applicable to any bond so called for redemption unless the bond to which such coupon is applicable is also presented for payment; provided, that in the event such bank should pay and such coupon with- out payment of the applicable bond it shall not be liable to the holder of any such applicable bond or to the city or to anyone whomsoever; and provided further, that such bank shall pay such coupon out of the moneys supplied to it for such purpose by the city if the holder thereof shall present evidence satisfactory to such bank that such holder is the owner of the coupon so presented and is not the owner of the bond to which such coupon is applicable. Section 7. Execution of the Bonds. The bonds shall be signed in behalf of the city by its mayor and by the city clerk, and the corporate seal of the city shall be affixed to each thereof by the city clerk, whose signa- ture thereon shall constitute attestation of said seal. The coupons shall bear the facsimile signatures of said mayor and city clerk, which facsimile signatures shall be valid in all respects as if the said persons had signed the coupons in person. Section 8. Pledge of General Credit and Special Pledges. The bonds shall be general obligations of the city for the payment of the principal of and interest on which the full faith and credit of the city are hereby irrevocably pledged. As additional security for payment of the said principal and interest there are further hereby irrevocably pledged (a) all assessments that may hereafter be made pursuant to the provisions of the improvement ordinance against the properties specially benefited by the improvements, together with the proceeds from all such assessments and the proceeds from the sale or redemption of any of said properties which may be sold by the city in enforcement of the lien of any such assess- ments, and the liens which the city may now or hereafter have on the said properties as security for said assess- ment are hereby transferred and assigned for the benefit of the holders of the bonds and the coupons with power to enforce the same either at law or in equity; and (b) the pro rata portion to which the bonds may be entitled to share, along with all other bonds of the city at any time outstanding, in the proceeds of the additional annual ad valorem tax at the rate of one-half of one per centum (112 of 1%) which the city is authorized by Amendment VIII to the Constitution of Alabama to levy for the purpose of paying its bonds and the interest thereon. Section 9. Agreements Respecting the Construction of the Improvements and the Levy and Collection of Assess- ments. The city agrees that it will forthwith proceed with the construction of the improvements in accordance with the provisions of the improvement ordinance, and it will complete the same as soon thereafter as may be practicable. Upon completion of the construction of the improvements the city will take all steps and adopt all proceedings that::mey be authorized or required by the laws of Alabama and that may be necessary to levy valid assessments for the costs of the improvements against the properties specially benefited thereby; provided, that no such assessment shall exceed the increased value of such properties by reason of the special benefits derived from the improvements with respect to which the assessment is made. The city agrees that thereafter it will undertake to collect all assessments so made pursuant to the improvement ordinance as and when the said assessments become due and payable, and further agrees that in the event any of the owners of any of the properties against which such assessments shall be made should elect to pay the same in installments in the manner authorized under the laws of Alabama and any such installments should remain unpaid for as long as one year after the same shall become due and payable the city thereupon will�ke all steps necessary to enforce the fiend on such assessments by sale of -"the _ffrop6rties against w- ich such assessments shall have been made. All proceeds collected"from said assessments shall —Ve deposited by the city from time to time as collected in a special fund separate and apart from all other funds of the city, and such special fund shall constitute a trust fund for the benefit of the holders of the bonds and the coupons and shall be used solely for the retirement thereof. Section 10. Agreements to Continue the Levy of the Additional Ad Volorem Tax. The city agrees that so long as any of the bonds remain unpaid it will levy each year, at the time and in the manner provided by law, the said additional annual ad valorem tax at the rate of one- half on one per centum (1/2 of 1 0) , and it will apply for the payment of the principal of and interest on the bonds so much of the pro rata portion to which the bonds may be entitled to share, along with all other bonds of the city at the time outstanding, in the proceeds of the said tax. The city will annually, at the times provided by law, use its best efforts to collect or cause to be collected the said tax so levied. Section 11. Payment at Par. Each banking insti- tution at which any of the bonds shall at any time be payable, by acceptance of its duties as a paying agent therefor, shall be construed to have agreed thereby with the holders of the bonds and the coupons that, out of the moneys supplied to it for that purpose it will make all payments of the bonds and the coupons In bankable funds at par and wittaout deduction for exchange, fees or expenses. The city agrees with the holders of the bonds and the coupons and with each such banking institution that it will pay all charges for exchange, fees, or expenses which may be made by any such paying agent in the making of such remittances at par in bankable funds. Section 12. Contractual Provisions. The provi- sions of this ordinance shall constitute a contract between the city and each holder of the bonds and the coupons. Section 13. Severability. The various provisions of this ordinance are hereby declared to be severable. In the event any provision hereof shall be held invalid by a court of competent jurisdiction such invalidity shall not affect any other portion of this ordinance. Section 14. Form of the Bonds. The bonds and the coupons applicable thereto shall be in substantially the following forms with appropriate changes therein to conform with the provisions hereof: (Form of Bond) No. $1,000 UNITED STATES OF AMERICA STATE OF ALABAMA CITY OF FAIRHOPE PUBLIC IMPROVEMENT GENERAL OBLIGATION BOND On the 1st day of April, 19_(unless this bond shall have been duly called for prior payment) for value received, the City of Fairhope, a municipal corporation in the State of Alabama, promises to pay to the bearer hereof, upon presentation and surrender hereof, the sum of O N E T H O U S A N D D O L L A R S with interest thereon at the rate of % per annum, payable semiannually on April 1 and October 1 in each year until and at the maturity hereof upon presentation and surrender of the appropriate annexed coupons as the same respectively mature. Both the principal hereof and inter- est hereon shall be payable in lawful money of the United States of America at the principal office of the Merchants National Bank(f Mobile, in the City of Mobile in the State of Alabama. This bond is one of an authorized issue aggre- gating $200,000 in principal amount (herein called "the bonds") numbered in the order of their maturity from 1 to 200, inclusive, and has been issued pursuant to the pro- visions of Chapter 6 of Title 37 of the Code of Alabama of 1940, as amended, and an ordinance of the city for the purpose of providing funds to pay the cost of constructing certain public improvements authorized under the provisions of the city's Ordinance No; 254, as amended, which ordinance as amended was ratified and confirmed by resolution ofthe governing body of the city on November 1C, 1958. The bonds may be redeemed as a whole or in part, and if in part then in inverse numerical order of those at the time outstand- ing, on any interest payment date at a redemption price for each bond redeemed equal to its face value plus accrued interest thereon to the date fixed for redemption and the following premium: one year's interest thereon if the date fixed for redemption is on or before April 1, 1963; and six months' interest thereon if the date fixed for redemption is after April 1, 1963. Notice of any such redemption shall be given at least one time not less than thirty days before the date fixed for redemption by publication in a newspaper pub- lished in the City of Mobile, Alabama. The indebtedness evidenced by this bond is a general obligation of the city for the payment of the principal of and interest on which the full faith and credit of the city have been irrevocably pledged. In and by the ordinance under which the bonds are authorized to be issued, said city has (a) further pledged for the benefit of the holders of the bonds all assessments made or to be made agaihst the properties specially benefited by the said public improvements, together with the proceeds of such assessments, and has assigned for the benefit of the holders of the bonds and the interest coupons applicable thereto all liens securing such assessments, and (b) further pledged for the benefit of the holders of the bonds the pro rata portion to which the bonds may be entitled to share, with all other bonds of the city at any time out-' standing, in the proceeds of the additional annual ad valorem tax at the rate of one-half of one per centum (112 of 1%) which the city is authorized by Amendment VIII to the Constitution of Alabama to levy for the pur- pose of paying its bonds and the interest thereon. It is hereby certified and recited that all con- ditions, actions and things required by the ccnstitution or laws of Alabama to exist, be performed or happen prece- dent to or in the issuance of this bond and the creation of the indebtedness evidenced hereby exist, have been performed and have happened and that the indebtedness evidenced by this bond, together with all other indebted- ness of the city, was when incurred and now is within every debt and other limit prescribed by the constitution and laws of Alabama. IN WITNESS W17.REOF, the city has caused this bond to be executed in its behalf by its mayor and by its city clerk, has caused its corporate seal to be hereunto affixed by its clerk whose signature hereon shall consti- tute attestation of said seal, has caused the annexed interest coupons to be executed with the facsimile signatures of the said mayor and city clerk, and has caused this bond to be dated April 1, 1959• CI By By 0 (Form of coupon) No. On the 1st day of , 19 , the City of Fairhope in the State of Alabama will pay to the bearer hereof at the principal office of The Merchants National Bank of Mobile, in the City of Mobile in the State of Alabama, Dollars in lawful money of the United States of America, being interest then due on its Public Improvement General Obliga- tion Bond dated April 1, 1959, and numbered. CITY OF FAIRHOP J By -- -- Mayor By City Clerk Following the maturity date of each coupon due on and after April 1, 1960, there shall be inserted the follow- ing: "(unless the bond to which this coupon is applicable shall have been duly called for prior payment)," Section 15. Sale of the Bonds. The bid of Hugo Marx and Company Birmingham, Alabama for the bonds at a purchase price equal to $ 200,000.00 , plus accrued interest thereon from April 1, 1959, to the date of payment therefor, representing an average annual net interest cost to the city of 3.0954 % per annum computed from the date of the bonds to their respective maturities, is hereby found and declared by the council to be the bid reflecting the lowest average annual net inter- est cost to the city, and the said bid is hereby accepted and the bonds are hereby sold and awarded to the said bidders at and for the said purchase price plus said accrued interest. Adopted and approved this 30th of Mar 1959. I � Mayor _:Lfir Q- City Clerk