Page 1 ORDINANCE NO. 1251 AN ORDINANCE TO PROVIDE FOR THE ISSUANCE OF $500,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION SECURED REFUNDING WARRANTS, SERIES 1970, OF THE CITY OF PRICHARD, ALABAMA BE IT ORDAINED by the City Council of the City of Prichard, Alabama, as follows: Section 1. Definitions and Use of Phrases. (a) Definitions. The following words and phrases, in the absence of clear implication herein otherwise, shall be given the fo™lowing respective interpretations where used in this ordinance: Additional 5 1 10 1 1 2 704 1146 118 28 95.710899 Parity 5 1 10 1 1 3 848 1143 220 29 83.010399 Securities meens any securi- -ties which the City may at the time of issuance be author- ized to issue and for the payment of the principal of and interest on which the Gross Receipts Tax may be pledged un- der the reserved right so to do contained in and in accord- ance with the provisions of Section 9 hereof. Nannual, Debt Service Requirement" means the amount of principal and interest having a stated maturity during a Fiscal Year. - Called 5 1 15 1 1 3 622 1595 162 26 86.838631 Warrant means a Warrant that has been called for redemption pursuant to the provisions of Sec- tion 5(a) hereof. city means the municipal corporation of Prichard in the State of Alabama and includes its successors and as- signs and any municipal corporation resulting from or surviv- ing any consolidation or merger to which it or its successors may be @ party. Coupons or nerein while? Page 2 Fiscal 5 1 3 1 1 2 602 222 100 26 86.987488 Year means a fiscal year of the City beginning on any October 1 and ending on the next ensu- ing September 30. . : Gross 5 1 4 1 1 2 580 397 162 34 95.341682 Receipts 5 1 4 1 1 3 768 397 79 26 94.496315 Tax means that certain privi- lege or license tax of the City levied by Ordinance No. 880 of the City adopted October 3, 1960, as amended by Ordinances Nos. 977, 1007, 1182, and 1197 of the City . adopted respectively on February 2, 1965, March 1, 1965, February 24, 1969, and April 9, 1969, on persons, corpo- rations and others engaging in the business of selling at retail tangible personal property and on the business of conducting or operating places of amusement, to the extent that the said tax is levied with respect to busi- ness conducted within the corporate limits of the City. Interest 5 1 5 1 1 2 644 846 140 28 95.864685 Payment 5 1 5 1 1 3 810 844 98 27 90.733925 Date means any May 1 or November 1 during the period beginning November 1, 1970, and continuing until and including May 1, 1990. er “Mayor" means the mayor of the City. Month means a calendar month. Newspaper means a journal or newspaper printed in the English language and customarily published not less than five days during each calendar week, Ordinance 5 1 9 1 1 2 663 1400 54 26 93.294029 No. 5 1 9 1 1 3 748 1397 99 28 95.190567 1024 means Ordinance No. 102% of the City adopted May 10, 1965, “Ordinarice No. 1205" means Ordinance No. 1205 of the City adopted May 19, 1969. Outstanding 5 1 11 1 1 2 708 1678 118 29 96.014709 Parity 5 1 11 1 1 3 853 1677 222 26 92.497604 Securities means those of the 1965 Parity Securities and the 1969 Warrants that now remain outstanding. “Outstanding Warrants" means the General Obliga- tion Warrants both dated May 1, 1970, which are referred to in subsection (a) of Section 2 hereof as being outstanding and the refunding of which is herein provided for. Parity 5 1 14 1 1 2 603 2052 223 27 81.648163 Securities means the 1965 Parity Secu- ritvies, the 1969 Warrants, the Warrants, and any Additional Parity Securities that may hereafter be issued pursuant to the provisions of Section 9 hereof. 1965 5 1 16 1 1 2 562 2226 120 28 96.401352 Parity 5 1 16 1 1 3 708 2223 223 26 96.075996 Securities means these bonds and ‘rants that were heretofore issued pursuant to author- tion in Crdinance No. 1024, including (a) the General of the ligation Secured Refunding Bonds, Series 1965, cy dated May 1, 1965, issued in the original principal count of $623,000, of which those numbered 61 to 823, Page 3 inclusive, aggregating $763,000 in principal amount, now remain outstanding; (b) the General Obligation Secured Warrants, Series 1965, of the City dated May 1, 1965, is- Sued in the original principal amount of $164,000, of which those numbered 65 to 164, inclusive, aggregating $100,000 in principal amount, now remain outstanding; and (c) the $1,467,000 principal amount of General Obligation Secured Refunding Warrants, Series 19658, of the City dated May 1, 1965, all of which presently remain outstanding. Pledged 5 1 7 1 1 2 640 570 59 24 96.211304 Tax 5 1 7 1 1 3 722 572 182 26 77.542198 Revenues means the proceeds de- . po EVENNESS : rived from the Gross Receipts Tax. “Redemption Date" means the date fixed for re~ demption of any of the Warrants in a@ Resolution adopted by the Council pursuant to the provisions of Section 5(2) hereof, Redemption 5 1 9 1 1 2 698 916 119 26 91.684898 Price means the price at which any Warrant called for redemption may be redeemed, Resolution means a resolution duly adopted by the Council, Secular 5 1 11 1 1 2 632 1189 76 30 81.413879 Day means any day on which business is normally transacted and does not include any Sunday or legal holiday. , Special 5 1 12 1 1 2 628 1364 99 26 95.909584 Fund means the Gross Receints Tax Fund ereated in Section 16 of Ordinance Mo. 1024, Warrants, without other qualifying languace, means the General Obligation Secured Refunding Warrants, Series 1970, herein authorized. 1969 5 1 14 1 1 2 561 1675 184 26 96.220390 Warrants means the General Warrants, Series 1969, dated May 1, 19: ad, pursuent to authorization in Ordinan riginal principal amount of $1,000,000, so wo Sc oon ae) {Dm wa iy BS chlo an bered 9 to 200, inclusive, aggregating $96 ipal amount, now remain outstanding. fe] a po * va Page 4 Wherever used herein any pronoun or pronouns *shall be deémed to include both singular and plural and to cover all genders. Section 2. Findings. The Council has ascer- .tained and found and does hereby declare that the fol- lowing facts are true and correct: (a) There are now outstanding and unpaid the following: (1) the General Obligation Warrant of the City in the principal amount of $250,000, dated Mey 1, 1970, due August 1, 1970, bearing interest at the rate of 6% per annum from June 8, 1970, to its maturity payable at maturity, which was issued pursuant to authorization in Ordinance No. 1244 of -4 the City adopted Junel, 1970, for the purpose of paying costs of acquiring fire fighting equipment and of acquiring, providing and constructing a fire station and a building to be used as a public library and for public recreational purposes in the City; and (2) the General Obligation Warrant of the City in the principal amount of $250,000, dated May 1, 1970, due October 15, 1970, bearing interest at the rate of 6% per annum from July 24, 1970, to its maturity payable at maturity, which was issued pursuant to authorization in Ordinance No. of the City adopted July 20 , 1970, for the purpose of ,.. paying costs of acauiring fire fighting equipment, acquiring, providing and constructing a fire station, and establishing and improving public parks in the City; : (b) Each of the Outstanding Warrants was signed in the name of and behalf of the City and the corporate seal of the City was arfixed thereto; each of the Outstand- ing Warrants was attested in the manner provided by the laws of Alabama and by the ordinance under which it was issued; no part of the princinal of or interest on the Outstanding Warrants has been paid; and each of the Outstanding Warrants represents @ valid general obligation indebtedness of the City against which there are no offsets or counterclaims; (ec) The Council has determine essary, desirable and in the public inte issue the Warrants hnereinafter authorize of refunding the principal of the Outste (ad) Tre Tne ipts Tax wnat 68, were 3? czecs Receipts a al Yee 20, 1969 e and th eeds deri P eceips two Fisca r ore, $ ae ey et + ~ ~ ose > 7 oa Page 5 (e) The maximum Annual Debt Service Reauire- ment with respect to the Outstanding Parity Securities and the Warrants is $ 231.555.0909 > being the amount of principal and interest that will mature with respect to the Outstanding Parity-Securities and the Warrants during the Fiscal Year ending September 30, 1922; 1.75 times the sum of §$ 531,555.90 (or 175% of the said sum) is $ 560,279.00 5 (f) The sum of $850,939.27 is greater than the sum of $ FOO. 279. G0 3 the average annual proceeds derived ‘from the Gross Receipts Tax during the two Fiscal Years ending September 30, 1968, and September 30, 1969 (which are the two Fiscal Years next preceding the issuance of the Warrants), is, therefore, more than 1.75 times the maximum amount of principal and interest that will mature during any succeeding Fiscal Year with respect to the Out- standing Parity Securities and the Warrants; and the War- rants are therefore eligible to be issued on a varity with the Outstanding Parity Securities, all pursuant to and in accordance with the provisions of Section 14 of Ordinance \ No. 1024 and of Section 9 of Ordinance No. 1205, upon the filing in the office of the City Clerk of a certificate by the Mayor and City Treasurer setting forth the facts recited in this paragraph and in the foregoing paragraphs (d) and (e) of this section; and (g) An Official Invitation for Bids for pur- chase from the City of the Warrants, together with per- tinent financial information with respect to the City, has been circulated among securities: dealers and banks; at the time and place fixed in the aforesaid Official invitation for Bids for the opening of sealed bids for purchase of the Warrants, viz., on duly 28, 1970, at _ , 12:00 o'clock, Noon, Central Daylight Time, at the City Hall in the City, and at a duly convened session of the Council, sealed bids for purchase from the City of the Warrants were received by the City; each of the said sealed bids was publicly opened at the seid time and place and each thereof was accompanied by a certified check or cashier's check in the amount of 716,900.00 pay- able to the order of the City and drawn on @ member bank of the Federal Reserve System; the said Officiel Invite- tion for Bids invited bids on either or both of nate schedules of maturities; the Council hes 4 that it will be advantageous to the City to acces bid submitted on that one of the said alternate schedule that was designated in the said invitation as Alternate Sched- ule No. 1.3; of the bids so opened with respect to the said Al- ternate Schedule No. 2, the best bid and the one t!} flected the lowest net interest cost to the City was Page 6 which reflected a net interest cost to the City of 5 593,437.59 >» and an average annual net interest arate of 7,63820%, and which specified a dollar:price or $ 500,099.00 and the interest rates hereinafter provided for. Section 3. Authorization of the Warrants. Pur- suant to the applicable provisions of the consticvution and laws of the State of Alabama, inéluding particularly Sec- tion 253 of Title 37 of the Code of Alabema of 1940, and for the purpose of refunding the principal of the Outstand- ing Warrants, there are hereby authorized to be issued by the City one hundred (100) General Obligation Secured Re- funding Warrants, Series 1970, of the City in the aggregate principal amount of $500,000, which shall be in the denomina- tion of $5,000 each, shall be dated May 2, 1970, and shall mature on May 1 as follows: Warrant Numbers Aggregate Principal (both inclusive) Year of Maturity Amount Maturing lto 5 1980 $25,000 @ 6 to 10 1981 25,000 11 to 20 1982 50,000 21 to 30 1983 . 50,000 31 to 40 - 1984 50,000 41 to 50 1985 . 50,000 51 to 60 1986 50,000 61 to 70 1987 . 50,000 71 to 80 1988 50,000 | 81 to 90 1989 50,000 ‘ 91 to 100 1990 50,000 — The Warrants shall bear interest from their date until their respective maturities at the following per annum rates: 6 3/4 %'‘en those having stated maturities in 19280 and:19813 and Jin 7°3/8%3 on those having stated maturities in “fig 228" and thereafter, . The said interest shall be payable semiannuelly on May 1 and November 1 of each year until and at the resnective maturities of the Warrants and shall be evidenced by sep- arate interest coupons attached thereto. Section 4. Interest After Maturity. Place of Fayment. icable thereto ee) shé arte respective maturities until shal sey able in lewful money of = the principal office of Hobile in the City of Page 7 Payment Date thereafter, at a Redemption Frice for each Warrant redeemed equal to its face value plus a.premium - requal to one year's interest thereon computed at the cou- ~* pon rate thereof. Any such redemption may be as a whole or in part of the Warrants then outstanding (and subject to redemption) and, if in part, such redemption shall be accomplished in the inverse numerical order of those of the Warrants at the time outstanding and(subject to re- Gemption), Any such redemption shall be effected in the following manner: (a) The City shall by Resolution adopted by the Council call for redemption on a stated Interest Payment Date when they are by their terms subject to redemption Warrants bearing stated numbers, and shall recite in said Reso- lution (1) that the City is not in default in the payment of the principal of or interest on any of the Warrants or (ii) that all of the War- ae rants then outstanding are to be retired on the Redemption Date. N (b) The City shall cause to be published one time either in a Newspa pr published in the City of Birmingham, Alabama, or in a nancial Journal published in the City of New York, New York, a notice stating the numbers of the War- rants so called for redemption, and stating that the Warrants bearing such numbers will become due and payable on a specified date (which shall be the Redemption Date fixed by Resolution adopted by paragraph (a) of this section) at om the Redemption Price (which. shall be specified in said notice), and that all interest on the Called Warrants will cease after the Redemption Dete. Any such notice shall be published not edemption Date. (ec) On or vrior to the the City shall notify the bank a rants are payadle of the City's com the requirements of paragraphs (2) this section and shell make availebis said bank the total Redemption Price o Called Warrants. i“ Upon com pert con on the R princina Calied W demption cease me i) HO Mm A ch tye