Page 1 al ci Aletta et psd take” die 2 AEE YAU /-S-70 Ble ORDINANCE NO, 1249 AN ORDINANCE AUTHORIZING THE BORROWING BY THE CITY OF PRICHARD, ALABAMA, OF $250,000 AND THE ISSUANCE IN EVIDENCE THEREOF OF THE CITY'S GENERAL OBLIGA- TION WARRANT IN THE PRINCIPAL AMOUNT OF $250,000 BE IT ORDAINED by the City Council (herein called the 5 1 8 1 2 3 494 648 172 30 95.664223 Council) of the City of Prichard, Alabama (herein called the 5 1 8 1 3 4 655 682 133 32 96.432526 City), as follows: Section 1, Findings. The Council has deter- mined and hereby finds and declares as follows: In or- der to provide adequate fire protection for the City and its inhabitants, it is necessary that an additional fire station be constructed in the City and that additional fire fighting equipment, consisting of a fire truck and the appurtenances thereto, be purchased by the City for , use by its fire department; it will also be advantageous to the City and its inhabitants and in the public inter- est that the City establish and improve -public parks in the City (including the construction therein of a public golf course and other recreational areas); the cost to the City of acquiring, providing and constructing the said fire station and establishing and improving the said public parks, as the said cost is presently estimated by the Council, and the purchase price of the said fire fight- ing equipment, will together be in excess of $250,000; the ' City does not have available from its current funds moneys sufficient to pay the cost of acquiring the said fire fight- ing equipment, acquiring, providing and constructing the said fire station, and establishing and improving the said public parks; and it is necessary, desirable, and advanta- eous to the City that it borrow temporarily the sum of 250,000 on its general faith and credit for the purpose of paying the said costs and that the City issue the warrant hereinafter authorized in evidence of such borrowing. Section 2. Authorization of Warrant. Pursuant to the applicable provisions of the constitution and laws of the State of Alabama, including particularly Section 466 of Title 37 of the Code of Alabama of 1940, and for the purpose of raising funds with which to pay costs of acquiring the said fire fighting equipment, acquiring, providing and constructing the said fire station, and es- tablishing and improving the said public parks, the City is hereby authorized to borrow from The Merchants National Bank of Mobile (herein called the 5 1 10 1 10 7 972 2024 113 28 96.394188 Bank) the principal sum of $250,000 and in evidence of the money so borrowed, the City is hereby authorized to issue and deliver to the Bank at the time of the borrowing one General Obligation Warrant (herein called the 5 1 10 1 14 4 671 2161 175 29 95.066643 warrant) of the City in the principal amount cf $250,000. The Warrent shall be drawn on the city treasurer, shall be dated May 1, 1970, shall be payable October 15, 1970, shall bear interest from the date of its delivery until its maturity at the rate of 6% per annum pay- able at maturity, shall be made payable to the Bank or its assigns, and shall be payable at the principal office of the Bank in the City of Mobile, Alabama. a Page 2 Section 3, Prepayment Privilege. The City re~ serves and shall have the privilege of prepaying the war- rant at any time prior to its maturity, without penalty or premium and without any prior notice, by paying to the holder of the warrant the principal of the warrant and the interest accrued thereon to the date of such payment. Section 4, Execution and Registration. The war- rant shall be executed and the corporate seal of the City shall be affixed thereto by the mayor of the City, and the city clerk shall attest the warrant by subscribing his sig- nature thereon. The warrant shall be registered in the records maintained by the city treasurer as a claim against the City and the taxes and revenues hereinafter specially pledged therefor. The said officers are hereby authorized and directed so to execute and attest the warrant and affix the said seal thereto and make such registration. Section 5. General Obligations; Special Pledge. The indebtedness evidenced and ordered paid by the warrant is and shall be a general obligation of the City for payment of the principal of and interest on which the full faith and credit of the City are hereby irrevocably pledged. In addi-~ tion thereto, and as a part of the contract whereunder the money evidenced and ordered paid by the warrant is borrowed and the said loan is made, the City does hereby agree with the holder of the warrant that the City will levy, collect and apply to payment of the principal of and the interest on such warrant, so long as any part thereof remains unpaid, and the City does hereby specially and irrevocably pledge for such payment so much as may be necessary for such payment of the proceeds from that certain special privilege 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, corporations 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 business conducted within the corporate limits of the City (the proceeds from the said tax, to the extent levied with respect to business conducted within the corporate limits of the City, being herein called the 5 1 4 1 25 8 1021 1839 96 23 96.351189 Gross 5 1 4 1 25 9 1142 1837 157 29 96.572456 Receipts 5 1 4 1 25 10 1323 1836 58 24 96.061211 Tax 4 1 4 1 26 0 255 1869 1144 34 -1 5 1 4 1 26 1 255 1873 214 30 74.219963 Proceeds). The pledge herein made of the Gross Receipts Tax Proceeds is subject to all lawful prior charges on the Gross Receipts Tax Proceeds. The City represents that it has no presently outstanding agreements or pledges with respect to the Gross Receipts Tax Proceeds except (a) pledges and agreements with respect to certain warrants of the City for retirement of which full provision has been made by irrevocable trust agreements executed and delivered on May 31, 1965; (b) pledges and agreements set forth in the City's Ordinance No. 1024 adopted May 10, 1965, — whereunder the -City's- $823,000 principal amount of Ceneral Obligation Secured Refunding Warrants, Series 1965, its Page 3 we ee oe $164,000 principal amount of General Obligation Secured Warrants, Series 1965, and its $1,467,000 principal amount of General Obligation Secured Refunding Warrants, Series 19654, all dated May 1, 1965 (herein called the 5 1 2 1 4 10 1234 432 76 32 93.236824 1965 5 1 2 1 4 11 1333 435 58 24 92.613724 Se- 4 1 2 1 5 0 251 466 1120 37 -1 5 1 2 1 5 1 251 470 213 33 81.553596 curities), were authorized to be issued; (c) the pledge and agreements set forth in the City's Ordinance No, 1205 adopted May 19, 1969, whereunder the City's $1,000,000 principal amount of General Obligation Secured Warrants, Series 1969, dated May 1, 1969 (herein called the 5 1 2 1 9 10 1273 601 116 32 96.750549 Series 4 1 2 1 10 0 251 633 1161 38 -1 5 1 2 1 10 1 251 639 75 31 96.364487 1969 5 1 2 1 10 2 348 639 216 32 95.767349 warrants), were authorized to be issued; and (d) the pledge and agreements set forth in the City's Ordinance No. 1244 adopted June 1,1970, whereunder the City's $250,000 General Obligation Warrant dated May 1, 1970, was author- ized to be issued. The City represents and agrees that the pledge herein made of the Gross Receipts Tax Proceeds shall be and remain prior and superior to any pledges and agree- ments respecting the Gross Receipts Tax Proceeds that may hereafter be made by the City, and that any pledges and agreements that may hereafter be made by the City with re- spect to the Gross Receipts Tax Proceeds, shall at all times be and remain subordinate and inferior to the pledge herein made. To that end, the City agrees that, so long as the warrant remains outstanding, the City will not issue any securities under the provisions of the said Ordinances Nos. 1024 and 1205 permitting the issuance of additional securi- ties on a parity, as to a pledge of the Gross Receipts Tax Proceeds, with the 1965 securities and the Series 1969 war- ' rants; provided, however, that the provisions of this sen~ tence shall not prevent the issuance by the City of such ad- ditional parity securities for the purpose of refunding the warrant and that certain warrant referred to in the foregoing clause (d) of this section. The City further agrees that it will continue the levy of the said special privilege or license tax, at the rates and on the subjects of taxation provided for in the said Ordinance No. 880, as heretofore amended as aforesaid, so long as any of the principal of or interest on the war~ rant remains unpaid. Section 6. Form of Warrant. The warrant shall be in substantially the following form: Page 4 (Form of Warrant) $250,000.00 $250,600.00 UNITED STATES OF AMERICA STATE OF ALABAMA CITY OF PRICHARD GENERAL OBLIGATION WARRANT The City of Prichard, Alabama (herein called the 5 1 5 1 2 2 326 903 133 35 96.316658 City), hereby acknowledges that it is indebted to The Merchants National Bank of Mobile in the principal sum 0 TWO HUNDRED FIFTY THOUSAND. DOLLARS and hereby orders and directs its city treasurer to pay the said sum to The Merchants National Bank of Mobile, or assigns, on October 15,1970, with interest thereon on the then unpaid principal hereof, from until the maturity hereof at the rate of 6% per annum payable at maturity. Both the principal hereof and the interest hereon shalt 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, Alabama. The City reserves the privilege of prepayling this warrant at any time prior to its maturity, without premium or penalty and without any prior notice, by pay- ing to the holder of this warrant the principal thereof and the interest accrued thereon to the date of such pay- ment. This warrant evidences a valid general obliga- tion of the City for payment of the principal of and the interest on which the City has irrevocably pledged its full faith and credit. In addition thereto, the City has agreed that it will levy, collect and apply to payment of the principal of and the interest on this warrant, so long as any part thereof remains unpaid, so much as may be nec- essary for such payment of the proceeds from that certain special license,or privilege tax of the City, commonly known as the 5 1 8 1 10 4 510 2061 96 24 96.180298 gross 5 1 8 1 10 5 630 2054 158 28 96.204559 receipts 5 1 8 1 10 6 811 2051 97 32 87.216690 tax, on those engaging in the business of selling at retail tangible personal property and of conducting or operating places of amusement, to the extent that the said tax is levied with respect to business conducted within the corporate limits of the City, the said pledge being subject to all lawrul prior charges on sald tax. Page 5 This warrant has been issued pursuant to the applicable provisions of the constitution and laws of the State of Alabama, including particularly Section 466 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 pay- ing costs to the City of acquiring fire fighting equip- ment, acquiring, providing and constructing a fire sta- tion, and establishing and improving public parks in the City. It is hereby certified that the indebtedness evi- denced and ordered paid hereby has been duly and legally incurred and will at the maturity hereof become lawfully due without condition, abatement or offset of any deserip- tion; that all conditions, actions and things required by the constitution and laws of the State of Alabama to exist, be performed and happen precedent to and in the issuance of this warrant exist, have been performed and have hap- pened; and that the indebtedness evidenced by the warrant, 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 this war- rant to be executed and its official sedl to be hereunto affixed by its 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 warrant to be dated May 1, 1970. CITY OF PRICHARD Attest: City Clerk The within warrant and the indebtedness thereby ordered paid are hereby transferred and assigned, without recourse or warranty, to * Page 6 Section 7. Delivery of Warrant. The city treas~ urer is hereby authorized and directed to deliver the war- rant, when executed, sealed, attested and registered as herein provided, at any time to the said lender upon pay- ment to the city treasurer of the principal amount of the warrant, The proceeds from the warrant shall be deposited with The Merchants National Bank of Mobile in a special separate account of the City and used solely for the pur- poses for which the warrant is herein authorized to be 1is- sued, ADOPTED this 6th day of July, 1970. y ~ Legeagege PE? L409 Pr ident OF the City Council Aumpenvteateds J, tbe. 4 spt Cie ttt City Clerk Hh . VE day of July, 1970. ae APPROVED this