HomeMy WebLinkAboutOrdinance No. 2014-2098 CITY OF THE COLONY, TEXAS
ORDINANCE NO. 2014- ;Deli
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, ESTABLISHING A SINKING FUND FOR THE
FUNDING OF THE PUBLIC PROPERTY FINANCE ACT CONTRACT
WITH GOVERNMENT CAPITAL CORPORATION;PROVIDING FOR THE
LEVYING AND COLLECTION OF A SUFFICIENT TAX TO PAY THE
INTEREST ON SUCH OBLIGATION; PLEDGING SUCH FOR THE
PAYMENT OF SAID AMOUNT; CONTAINING OTHER INCIDENTAL AND
RELATED MATTERS; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING A REPEALER CLAUSE; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the City of The Colony, Texas, a Texas home-rule municipality(hereinafter
referred to as the "City"), desires to enter into a contract with Government Capital Corporation, a
Texas corporation (hereinafter referred to as "GCC"), regarding the financing and acquisition of
certain personal property; and
WHEREAS,the term for the Public Property Finance Act Contract(hereinafter referred to as
the"Contract")extends beyond the present(2014-2015)fiscal year,and terminates during the 2023-
2024 fiscal year, with the final payment due August 1, 2024; and
WHEREAS, GCC and the City acknowledge that,pursuant to the provisions contained in
Article XI, Sections 5 and 7 of the Texas Constitution, the City may not enter into unfunded debt,
i.e., debt beyond the current fiscal year, for any purpose without creating a sinking fund of at least
two percent (2%) of the amount of such debt for the payment of said debt; and
WHEREAS, Section 3(b) of the Contract provides that the City will annually assess and
collect a sufficient sum to pay the greater of interest on the debt and a sinking fund of at least two
percent (2.0%); and
WHEREAS, GCC and the City further acknowledge at the time long-term debt is created,
the City must provide for the assessment and collection on an annual basis of a sufficient sum of
money for payments accruing during any subsequent budget year.
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF THE COLONY, TEXAS, THAT:
SECTION 1. All the above premises are hereby found to be true and correct and are hereby
approved and incorporated into the body of this Ordinance as if copied in their entirety.
SECTION 2. From and after the effective date of this Ordinance,the City's Chief Financial
Officer is hereby directed to create and maintain,through September 30,2024,unless said Contract
is terminated pursuant to its terms before such date, a Sinking Fund for the payment of the debt
created by such Contract. The Sinking Fund shall consist of two percent (2%) of the principal
amount of such debt due and owing GCC through September 30,2024,as reflected in the Exhibit B
of the Contract.
SECTION 3. The proceeds placed into the Sinking Fund, for the current fiscal year(2014-
2015)and succeeding fiscal years shall be from the City's ad valorem tax,and there shall be annually
assessed and collected in due time, form and manner, a direct and continuing ad valorem tax on all
taxable property within the corporate limits of the City at a rate from year to year, within the
limitations prescribed by law,on each one hundred dollars' valuation of taxable property as will be
sufficient to provide funds to satisfy any obligations under the Contract during any budget year.
SECTION 4. The City's Chief Financial Officer shall keep and maintain all records relating
to the Sinking Fund and all such other related documentation and accounts,and is hereby authorized
and instructed to maintain all funds necessary in the Sinking Fund to prevent the creation, at any
time, of an unconstitutional debt in the terms, conditions, or administration of the Contract.
SECTION 5. All ordinances, orders or resolutions heretofore passed and adopted by the
City Council of the City of The Colony,Texas,are hereby repealed to the extent that said ordinances,
orders or resolutions, or parts thereof, are in conflict herewith.
SECTION 6. If any section, article, paragraph, sentence, clause, phrase or word in this
Ordinance is held invalid or unconstitutional by a court of competent jurisdiction,such holding shall
not affect the validity of the remaining portions of this Ordinance; and the City Council hereby
declares it would have passed such remaining portions of this Ordinance despite such invalidity,and
further declares that such remaining portions shall remain in full force and effect.
SECTION 7. This Ordinance shall take effect and be in full force from and after its passage,
as provided by state statute and the Code of Ordinances of the City of The Colony, Texas.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, THIS THE 7th day of OCTOBER,2014.
J e Mc o , Mayor
ATTES :'
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Witt\t-P-
Christie Wilson, City Secretary H Cr' ji11
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APPROVED AS TO FORM:
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eff Moore, !' ity Attorney