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HomeMy WebLinkAboutO-418STATE OF ALABAMA / COUNTY OF BALDWIN The Mayor* and City Council of the City of Fairhope, Alabama, met in regular s ssion at the city hall in said city on Monday, ne 99 19699 at th regular,.7:30 P. M. The meeting was calle to ord r by mayor R. C. Ma on who presided as chairman of the me ing. The roll was called by rVe Moore, the City Clerk, and t e following were found to be press s Mayor R. C. Macon and Co cilmen Henry G. Bishop, Sam'Box, Rober H. Cowen, James P. Ni and John A. Robertson; and the following were found to be bsent. None. Marie Moore, the City'Clerk, a ed as clerk of the meeting. A Quorum being present, the mayor a ounce that the meeting was open for the transaction of business he minutes of the precedin meeting were read and approved. Mayor Macon'; '.with';the-appr.oval of the Cit Council appointed Mr. Lloyd Taylor as City Recorder replace Mr. Walter Patton who has resigned to accept a positio in Jacksonville, lorida. Motion by Councilman Bish seconded by Councilma Cowen that trap - fer of 810,000 from Ele tric Fund to General Fund be approved. Motion carried. Reverend Dodson, r presenting the Eastern Shore Jaycees, tlined the proposed Ju 4th celebration and requested City to plac ad in their pro am. Motion by Councilman Robertson seconded by Councilman ishop that $150.00 bezppropriated for two page ad in Jaycees uly_4th Program. Motion carried. Councilman Nix introduced the following Ordinance which was read to the meeting: ORDINANCE NO. 418 AN ORDINANCE AUTHORIZING THE BORROWING BY THE CITY OF FAIRHOiPE, ALABAMA, OF $200v000 AND THE,ISSUANCE IN EVIDENCE THEREOF OF THE CITY'S GENERAL OBLIGATION NOTE IN THE PRINCIPAL AMOUNT OF $200,000 BE IT ORDAINED by the Mayor and City Council (herein called "the council") of the City of Fairhope, Alabama, (herein called the City")9 as follows: Section 1. Findings. The Council has determined and hereby finds and declares as follows: it is advantageous to the City and its inhabitants and in the public interest that a new public pier or wharf be constructed in and for the City; the cost of the said pier or wharf, as presently estimated by the Council, will be approximately $600,000; approximately S300,000 of the said costs will be provided by,a grant from a federal agency and ap- proximately $1009000 of the said costs will be paid out of funds that the City has on hand and an-d_. available for that purpose; and it is necessary, desirable, and advantageous to the City that it borrow the sum of $200,000 on its general faith and credit for the purpose of paying the remaining portion of the said costs and that the City issue the note hereinafter authorized in evidence ofl such borrowing. Section 2. Authorization of Note. Pursuant to the applic-I able provisions of the constitution and laws of the State of Alabama, lincluding particularly Section 465 of Title 37 of 'the Code of Ala- Ibama of 1940, and for the purpose of raising funds with which to pjy Ia portion of the costs of the said pier or wharf, the City is here Iby authorized to borrow from the First National Bank of Fairhope (herein called "the Bank") the principal sum of 6200,000 and in evi- dence of the money so borrowed, the City is hereby authorized to issue and deliver to the Bank at the time of the borrowing One Gen4ral Obligation Note (herein called "the note") of the City in the prir cipal amount of S200,000. The note shall be dated June 10, 19699 shall be payable June 10, 19709 shall bear interest from the date of its delivery until its maturity at the rate of 4-3/4% per annum and payable quarterly on September 10, 1969, December 10, 1969, March 10, 1970, and at maturity, shall be made payable to the Bank 8r its assigns, and shall be payable at the principal office of the Sank in the City of Fairhope, Alabama. Section 3. Prepayment privilege. The City reserves and shall have the privilege of prepaying on any interest payment date, without penalty or premium and without any prior notice, either the entire then outstanding principal balance of the note or a por- k . t tion of the said principal balance that is a multiple of $1,000. The interest due on the same date with respect to the note must also be paid: Interest will not accrue, with respect to any prin- cipal so prepaid, after the date of such prepayment. Section 4. Execution and Registration. The note shall be executed and the corporate seal of the City shall be affixed there to by the mayor of the City, and the City Clerk shall attest the note by subscribing her signature thereon. The note shall be regi - tered in the records maintained by the City Treasurer as a claim against the City and the taxes and revenues hereinafter specially bledged therefor. The,said officers are hereby authorized and di- rected so to execute and attest the note and affix the said seal hereto and make such registration. N Section 5. General Obligation. The indebtedness evidenced ind orddred paid by the note is and shall be a general obligation )f the City for payment of the principal of the interest on which :he full faith and credit of the City are herevy irrevocably pledgE n addition thereto, and as a part of the contract whereunder the noney evidenced by the note is borrowed and the, said loan is made, she City does hereby agree with the holder of the note that the ill levy, collect and -apply to payment of the principal and the nterest on such note, so long as any part thereof remains unpaid, 11 license taxes, ad volorem taxes and other taxes or revenues due. r to become due to the City within twelve month from the date of he note,subject to all lawful prior charges on said taxes and reveh- es . Section 6., Form of Note. The note shall be in substantial] -.he following form: J $2009000.00 UNITED STATES OF AMERICA STATE OF ALABAMA CITY OF FAIRHOPE GENERAL OBLIGATION NOTE $2009000.00 For value received, the City of Fairhope, a municipal'cor- poration in the State of Alabama (herein called "the City"), here- by promises to pay to the order of the First National Bank of Fair hope the -principal sum of TWO HUNDRED THOUSAND DOLLARS On June 10, 1970, with interest on the then unpaid principal here- of from the date hereof until the maturity hereof at the rate of 4-3/4% per annum, such interest being payable quarterly on Sept. 10, 1969, December 10, 1969, march 10, 1970, and June 10, 1970. Both the principal hereof and the interest hereon shall -be payable in lawful money of the United States of America at the principal office of said The First National Bank of Fairhope in the City of Fairhope, Alabama. The City reserves the privilege of prepaying the principal of this note on any interest payment date, as a whol or in part in multiples of $1,000.00, all without premium or penalty and without any prior notice. Interest shall thereupon cease to accrue with respect to the principal so prepaid. This note evidences a valid general obligation of the City for payment of the principal of and the interest on which the City has irrevocably pledged it's full faith and credit. In ad- dition thereto, the City has agreed that it will levy, collect and apply to payment of the principal of and the interest on this note so long as any part thereof remains unpaid, all license taxes, ad- volorem taxes and any other taxes or revenues due or to become due to the City within,.:twelve month from the date of this note, subjec to all lawful. prior charges on said taxes and revenues. This note has been issued pursuant to the applicable pro- visions of the constitution and laws of the State of Alabama, including particularly,,Section 465 of title 37 of the Code of Alabama of 1940, and an ordinance of the governing body of the City duly and legally adopted, to raise funds for the purpose of paying a portion of the coststo the City of constructing a public pier or a wharf in and for the.City. It is hereby certified that the indebt d ness evidenced and ordered paid hereby has been duly and legally incurred and will at the maturity hereof become lawfully due with out condition, abatement, or offset of any description; that all cbn- ditions, actions and things required by the constitution and laws of the State of Alabama to exist, be performed or happen precedent to and in the issuance of this note exist, have been performed and have happened; and that the indebtedness evidenced by this note, together.with all other indebtedness of the City, was at the time the same was incurred and is now within every debt and other limit prescribed by the constitution and laws of the State of Alabama. IN WITNESS WHEREOF, the City has caused thisnote to be execu ted and its official seal to be hereunto affixed by i,ts mayor and has caused the same to be attested by its City Clerk, both of whom have hereunto subscribed their signatures and are thereunto duly authorized, and has caused this notetb be dated June 10, 1969. CITY OF FAI RHOPE By Its Mayor ATTEST: Its City Clerk . Section 6. Delivery of Note. T-he city treasurer is hereby authorized and directed to deliver the note, when executed, se`ale�, attested and .registered as herein provided, at any time to the Ban upon payment to the city treasurer of the principal amount of the note. The note shall be so delivered on June 10, 1969, unless it should be for any reason impracticable to effect delivery of the note on that date. If the note is not delivered on June 10, 1969, it shall be delivered as soon thereafter as may be practicable, an the Bank shall pay to the City treasurer (in addition to the prin- cipal amount of the note) an amount equal to the interest accrued on the note from June 10, 19699 to the date of its delivery. Section 7. Use of•proceeds from note. The proceeds from the note shall be deposited in a special trust fund, to be desig- nated Fairhope Pier Construction Fund (herein called "the construc, tion fund") which shall be used solely to pay costs of construc- tion of the said public pier or wharf. The First National Bank of Fairhope in the City pf Fairhope, Alabama, shall be and remain the depository for the construction fund. moneys on deposit in the construction fund shall be paid out by depository therefor on checks,'drafts or orders signed in the name of the City by its city treasurer or its mayor and countersigned by the other of the said officers or by a member of the council. The said officers ar hereby authorized to withdraw moneys from the construction fund and to apply the moneys so withdrawn for payment of the costs of constructing the said public pier or wharf. The said depository i� hereby authorized and directed to honor any checks, drafts or or- ders drawn on the construction fund that are so signed and counter signed, regardless of the person or persons to whom the same may be payable. ADOPTED This 9th day of June, 1969. S/ R. C. Macon Manor Authenticated: S/ Marie Moore City Clerk