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HomeMy WebLinkAbout603ORDINANOE NO. ,- 60] AN ORDINANCE providing for the issuance of Public Improvement Revenue Certificates of the City of Sanford, Florida, in anticipation of the collection of its franchise tax, for the purpose of paying the cost of necessary municipal improvements in and for said city and expressing certain covenants and undertakings on behalf of the city for the security and payment of such revenue certificates. WHEREAS the City of Sanford, in Seminole County, Florida, is a municipal corporation duly organized and operating under the Constitution and laws of the State of Florida, including Chapter 26210 of the Laws of Florida, 1949, as amended and supplemented, and pursuant to the provisions of Ordinance No. 580 adopted by the City Commission of said city on June 11, 1956, Florida Power & Light Company has been paying and will continue to pay a franchise tax for the privilege of operating and maintaining electric light and power facilities in said city (which tax is sometimes herein- after referred to as the "franchise tax"); and WHERE~S the proceeds of said tax is free of all pledges, and based on experienced revenues therefrom is assured to amount to not less than $33,000.00 annually and will be more than ample to pay the interest on and accomplish retirement of the Public Improvement Revenue Certificates as herein authorized; and WHEREAS it is essential to preserve the public convenience and safety, as well as the physical and economical well-being of the City of Sanford, that municipal improvements be acquired and constructed generally described as consisting of: Community Center Swimming Pool Boat Basin 2 Pumpers New Fire Station 2 Garbage Packers Dozer and Loader 2 Ih/mD Trucks Derrick Truck Chassis Sweeper Air Condi~ioning Street Lighting Storage Building Street Cons%ruction and Street name ~igns and for the purpose of paying the cost of said municipal improve- ments and appurtenances it is necessary to borrow money through the issuance and sale of Public Improvement Revenue Certificates to the amount of four hundred thousand dollars ($400,000) as hereinafter authorized; NOW, THEREFORE, Be It Enacted by the People of the City of Sanford, Florida: Section 1. That it is hereby found and declared to be advantageous and will operate to promote the general welfare of the community for the City of Sanford, Florida, to construct and acquire the municipal improvements generally identified and referred to in the preamble hereof, and for the purpose of paying the cost thereof there are hereby authorized to be presently issued in anticipation of the collection of the franchise tax, as also referred to in the preamble hereof, the Public Improvement Revenue Certificates of said city in the aggregate principal amount of $400,000. Said revenue certificates shall be numbered consecutively i to 400, inclusive, shall be on the denomination of $1000, dated February l, 1957, shall bear interest at the rate of four and one-half per cent per annum, which interest shall be evidenced by coupons attached to said revenue certificates and shall be payable August l, 1957 and semiannually thereafter on February i and August 1 of each year, and said revenue certificates shall be scheduled to become due and payable in numerical order on February 1 of the respective years as follows: Year Amount Year Amount 1960 1961 1962 1963 1964 $10,000~ 1971 $17,000 11,000~ 1972 ~ 17,000 11,000' 1973 18,000 12,000~ 1974 19,000 12,000~ }~!~ 20,000 provided, however, that said revenue certificates from time to time outstanding shall be subject to redemption by said city prior to maturity in whole for refunding purposes on any interest payment date on or after February 1, 1972 upon terms of par and accrued interest plus a redemption premium equal to three per cent of the principal amount thereof if called for redemption on or before August l, 1976; two per cent of such principal amount if called for redemption thereafter and on or before August l, 1981; and one per cent of such principal amount if called for redemption thereafter; and said revenue certificates shall also be subject to redemption by said city prior to maturity in part in the order of their numbering for the purpose of permitting application of available funds from the franchise tax in the "Public Improvement Revenue Certificates Interest and Sinking Fund~" as hereinafter provided, on any interest payment date on or after August l, 1962; upon terms of par and accrued interest plus a redemption premium of three per cent of the principal amount thereof if called for redemption on or before August l, 1967; two per cent of the prin- cipal amount thereof if called for redemption thereafter and on or before August 1, 1972; and one per cent of such principal amount if called for redemption thereafter. In the event any of said revenue certificates are called for redemption as aforesaid notice thereof identifying the certificates to be redeemed shall be given by publication at least once not less than thirty days prior to the redemption date in a newspaper or financial Journal of general circulation published in the City of New York~ New York. Both principal and interest shall be payable in lawful money of the United States of America at the principal office of The Hanover Ban~ in the City of N~w Yowk. N~w V~w~ ~t~ ,~,,.B,,~ official signature of its Mayor, sealed with the corporate seal of said city and attested by the City Clerk, and the interest coupons attached to said certificates shall be executed with the facsimile signatures of said Mayor and said City Clerk, and said officials by the execution of said certificates shall adopt as and for their own proper signatures their respective facsimile signs- together tures on said coupons. Ail of said revenue certificates, with the interest thereon, and any additional revenue certificates .~ ranking on a parity therewith that may be issued and outstanding under the conditions and restrictions hereinafter set forth, are to be issued in anticipation of the proceeds of the franchise tax, all as hereinafter more specifically provided, and shall be payable solely and only out of the "Public Improvement Revenue Certificates Interest and Sinking~und," and shall be a valid claim of the holders thereof only against said fund and the proceeds of the franchise tax hereinafter pledged and provided to be placed in said fund. Said revenue certificates shall not constitute an indebted- ness of said city within the meaning of any constitutional, statu- tory or charter provision or limitation, nor shall they constitute a lien upon any other property or funds of said city, and the city will never be required to levy, use or apply ad valorem taxes for payment thereof. Section ~. That said revenue certificates hereby authorized and the endorsements to appear on the back thereof shall be in substantially the following form: (Form of Certificate) NO · UNITED STATES OF AMERICA STATE OF FLORIDA COUNTY OF SF~INOLE CITY OF SANFORD PUBLIC IMPROVEMENT REVENUE CERTIFICATE $1,000 "' The City of Sanford, in the County of Seminole and State of Florida, for value received, hereby promises to pay solely from the special fund provided therefor, as hereinafter set forth, to the bearer or, if this revenue certificate be registered as to principal, to the registered owner hereof, on the first day of February, 19., the principal sum of One Thousand Dollars ($1,000), and to pay from said special fund interest thereon from the date hereof at the rate of four and one-half per cent (4 1/2%) per annum on August l, 1957 and semiannually thereafter on the first days of February and August of each year until paid, except as the provisions hereinafter set forth with respect to redemption prior to maturity maY become applicable hereto, such interest aforesaid as maY accrue on and prior to the maturity date hereof to be paid only upon the presentation and surrender of the annexed interest coupons as they severally become due. Both principal hereof and interest hereon are payable in lawful money of the United States of America at the principal office of ~he Hanover Bank ., in the City of New York, New York. This revenue certificate is one of an issue of $400,000, numbered consecutively I to ~O0 inclusive, issued by said city pursuant to and in full compliance with the provisions of the Constitution and laws of the State of Florida, including the charter law of said city, and pursuant to an ordinance duly adopted by the The revenue certificates of the issue of which this certificate is one and which may be outstanding from time to time, are subject to redemption by said city prior to maturity in whole for refunding purposes on any interest payment date on or after February 1, 1972 upon terms of par and accrued interest plus a redemption premium equal to three per cent of the principal amount thereof if called for redemption on or before August 1, 1976; two per cent of such principal amount if called for redemption thereafter and on or before August 1, 1981; and one per cent of such principal amount if called for redemption thereafter; and said revenue certificates shall also be subject to redemption by said city prior to maturity in part in the order of their numbering for the purpose of permitting application of available funds from the franchise tax in the "Public Improvement Revenue Certificates Interest and Sinking Fund," as hereinafter provided, on any interest payment date on or after August 1, 1962; upon terms of par and accrued interest plus a redemption premium of three per cent of the principal amount thereof if called for redemption on or before August 1, 1967; two per cent of the principal amount thereof if called for redemption thereafter and on or before August 1, 1972; and one per cent of such principal amount if called for redemption thereafter. In the event any of said certificates are called for redemption as aforesaid notice thereof identifying the revenue certificates to be redeemed will be given by publication at least once not less than thirty days prior to the redemption date in a newspaper or financial Journal of general circulation published in the City of New York, Mew York. All such certificates thus called for redemption and for the retirement of which funds are duly ..... · ~ ~1 ~ t~ bear interest on such redemption date. this issue may be issued, and this issue of revenue certificates, together with any such additional parity revenue certificates, are to be payable solely as to both principal and interest from the proceeds of the franchise tax being collected pursuant to the provisions of Ordinance No. 580 adopted by the City Commission of said city on June ll, 1956 and paid by Florida Power & Light Company for the privilege of operating and maintaining electric light and power facilities in said city. It is covenanted and agreed in and by the ordinance authorizing this issue of revenue certificates that the City Commission will continue to impose and collect said franchise tax to provide available proceeds adequate at all times to pay into a special fund created by said ordinance amounts fully sufficient to pay when due the principal of and interest on all said revenue certificates and to accumulate and maintain the prescribed reserve therefor. This revenue certificate, including interest thereon, is payable solely from said special fund and thaproceeds of said franchise tax and does not constitute an indebtedness of said City of Sanford within the meaning of any constitutional, statutory or charter provision or limitation, and it is expressly agreed that this revenue certificate and the obliga- tion evidenced thereby shall not constitute a lien upon any other property or funds of said city, and said city will never be re- quired to levy, use or apply any ad valorem taxes for the payment of said principal or interest. This certificate with interest coupons hereunto apper- taining is issued upon the following terms and conditions to all of which each taker and owner hereof and of the interest coupons consents and agrees: (a) Title to this certificate unless registered as herein (b) Any person in possession of this certificate, unless registered as herein provided, or of the interest coupons hereunto appertaining, regardless of the manner in which possession shall have been acquired, is hereby authorized to represent himself as the absolute o~ner thereof, and is hereby granted power to transfer absolute title thereto by delivery thereof to a bona fide purchaser, that is, to anyone who shall purchase the same for value (present or antecedent), without notice of prior defenses or equities or claims of o~nershlp enforceable against his transferror; every prior taker or owner of this certificate, unless registered as herein provided, and of the annexed interest coupons, waives and renounces all of his equities or rights therein in favor of every such subsequent bona fide purchaser, and every such bona fide pur- chaser shall acquire absolute title thereto and to all rights represented thereby; (c) The City of Sanford may treat the bearer of this certifi- cate, unless registered as herein provided, or of the interest coupons hereunto appertaining, as the absolute owner thereof for all purposes without being affected by any notice to the contrary. It is hereby certified, recited and declared that all acts, conditions and things required by the Constitution and laws of Florida, and the charter of said city, to happen, exist and be performed precedent to and in the issuance of this revenue certifi- cate, have happened, exist and have been performed as so required, and that the proceeds of said franchise tax has been pledged to and will be set aside into said special fund in a sufficient amount each year for the prompt payment of the interest on and principal of said revenue certificates as the same become due and to accumulate This revenue certificate is registrable as to principal alone in accordance with the provisions endorsed hereon. IN WITNESS WHEREOF said City of Sanford has caused this revenue certificate to be executed on its behalf by the signature of its Mayor, its corporate seal to be hereunto affixed, and attested by its City Clerk, and the interest coupons hereto attached to be executed with the facsimile signatures of said officers, all as of the first day of February, 1957. Attest: Mayor of the City of Sanford City Clerk. NO. Sanford, (Form of Coupon) On the first day of Florida, will pay to bearer at , 19 , the City of The Hanover Bank · in the City of New York, New York· the sum of Dollars ($, ), solely from the special fund referred to in and for the semiannual inter- est then due on its Public Improvement Revenue Certificate dated ~ebrua~y 1, 1957, Numbered Attest: Mayor of the City of Sanford City Clerk. (Form of Validation Certificate) (Certificate of Registration) This revenue certificate may be registered as to principal on the books of the City Clerk of the City of Sauford, and notation of such registration made hereon, and this certificate may thereafter be transferred on said books by a written assignment by the registered owner oF his atte~ney, duly acknowledged, or proved, and notation of such transfer endorsed hereon. Such transfer may be to bearer and thereby transferability by delivery shall be restored, subject, however, to successive registrations and transfers as before. The principal of this revenue certificate, if registered, unless registered to bearer, sh~ll be payable enly to the registered owner, or his legal representative, but the coupons appertaining hereto will remain payable to bearer, notwithstanding registration. Date of : Name of : Signature of Re$istration : Re6istered Holder : City Clerk : : Section ~. That the revenue certificates hereby author- ized may be registered as to principal in accordance with the provisions for registration hereinabove provided for endorsement thereon, and the City Clerk is hereby appointed and designated Registrar for such purpose. No charge shall be made for the privi- lege of registration or transfer. Sectio~ ~. That the revenue certificates herein author- ized shall be executed and validated as herein provided and shall thereupon be sold and delivered to Leedy, Wheeler & Alleman pur- suant to the agreement for such sale dated November BO, 1956, which agreement is hereby in all respects ratified and confirmed and found to be for the best interests of said city. Section ~. That W~ O~ Hutohlio~, Jr~ , City Attorney, is hereby authorized and directed to take appropriate proceedings in the Circuit Court of the Ninth Judicial Circuit of Florida, in and for Seminole County, for the validation of said revenue certificates, and the ~ayor and City Clerk are authorized to sign any pleadings in such proceedings for and in behalf of the city. Sectio~ ~. That the proceeds to be received through the negotiation and sale of said revenue certificates, exclusive of accrued interest, shall be applied to the purpose of paying the cost of constructing and acquiring the municipal improvements as hereinbefore generally described and paying the expenses and charges incident to the issuance and sale of the revenue certifi- cates hereby authorized; provided, that interest accruing on said revenue certificates prior to the receipt of sufficient proceeds from said franchise tax shall be deemed a part of the cost of the municipal improvements and shall be paid from the proceeds of Al l ~llm~ ~eeived as accrued interest Pending expenditure for the authorized purpose such proceeds avail- able for construction and acquisition purposes shall be deposited in a bank or in banks and secured by a surety bond or bonds fur- nished by a surety company or companies qualified or authorized to do business in Florida, or any such deposit may be collaterally secured by direct or fully guaranteed obligations of the United States of America having a market value equivalent to such deposit. Any surplus remaining after accomplishing the purpose for which said revenue certificates are authorized shall be converted into said Public Improvement Revenue Certificates Interest and Sinking Section ?. There shall be and there is hereby created a special fund to be known as the "Public Improvement Revenue Certificates Interest and Sinking Fund" (hereinafter called the "sinking fund"), into which there shall be set apart and paid from and after the date of the issuance of any of said revenue certifi- cates each year all of the proceeds of the franchise tax which shall be in amounts fully sufficient for the payment when due of the interest on and the principal of said revenue certificates and also creating and thereafter maintaining a reserve therefor. Whenever additional parity revenue certificates are issued and are outstanding all of the proceeds from the franchise tax shall continue to be set aside into the sinking fund; provided, that no further payments need be made into said sinking fund when- ever and so long as the amount therein is sufficient to retire all of the revenue certificates then outstanding plus the amount of interest due and thereafter to become due prior to such retirement. All moneys set apart and paid into said sinking fund shall be used solely and only and is hereby pledged for the purpose shall be used for the purchase or retirement of revenue certificat~ in advance of maturity e×ceot that part which may be in excess of the amount of interest and principal becoming due within the next succeeding twelve months plus a reserve in an amount equal to the total of the largest amounts of orinclpal and interest to become due in any two succeeding calendar years. Any moneys held in the Binking Fund, in excess of the amount of interest and principel becoming due within one y~ar, may, upon orders of the CITY CONNIBSION, be invested and reinvested in bondsi or other direct and general obliga~ions, issued or guaranteed in full by the United States of America, having a maturity date or being redeemable at the option of the holder within two years from the date of investment therein. All such investments, as well as income therefrom, shall be carried to the credit of the Sinking Fund. Section 8. The revenue certificates authorized to be is- sued hereunder and any additional oarity revenue certificates, as hereinafter permitted and provided and at the time outstanding, shall not be entitled to oriorlty one over the other in the appli- cation of the sinking fund regardless of the time or times of thei issuance, but only as the i~erest and principal from time to time outstanding becomes due. The city hereby covenants and agrees not to incur any other obligations or indebtedness payable from thentoi same source as the payments hereinbefore specified to be made the sinking fund unless the pledge and obligation for the payment of such other obli~atione or indebtedness are made specifically subordinate and subject to the prior and superior rights and security for the revenue certificates herein authorized and any additional parity revenue certificates then outstanding; provided, certificates then outstanding it may from time to any pertinent ~aw then in effect issue add~.tional catee only for the purpose of paying all or any part of the cost capital improvements in and for said city and payable from the proceeds of said franchise tax and ranking on a parity with the revenue certificates herein authorized subject to the following conditions and restrictions: Before any such additional parity revenue certificates may be issued there shall have been procured and filed with the City Clerk a statement by an independent certified public acoountant of recognized reputation and not in the regular employ of the City on a monthly basis reciting the opinion based on the necessary investigation that the proceeds of said franchise tax received by the city during the calendar year orece~ing the issuance of such additional parity revenue certificates and available for payment into the sinking fund was equsl to at least one and one- half times the maximum amount that will become due in any succeed- lng calendar year for both principal of and interest on such reve- nue certificates then outstanding and the additional parity reve- nue certificates then proposed to be issued, and provided also the interest payment dates for any such additional parity revenue certificates shall be semiannually on February I and August I of each year and the principal maturities thereof shall be on February I of any year in which any of such prlncipalls scheduled to become due. Section 9. The provisions of said Ordinance No. 580, as well as the provisions of this ordinance, shall constitute a part of the contract between said city and the holders of the revenue time p,~rsuant to revenue certifi-! °l certificates thst may be issued and outstanding hereunder,! lng provisions. ~ection 10, That all ordinances, resolutions and orders, or parts thereof, in conflict with the provisions of this ordinance, are to the extent of such conflict hereby repealed. Section ll. Tha~ this ordinance is hereby declared to be an emergency ordinance necessary for preservation of peace, health, )roeperity and safety, and shall be in full force and effect im- mediately upon its adoption and posting of a copy hereof at the front door of the City Hall of said City as provided by law. Adopted this 31s~day of December, 1956, by the Cl~y Com- mission of the City of Sanford, Florida. ~ttest: (~ City ' torney ~ Recorded: December ~1. , 1956. City As the City ComMission of the City of Sanford, Florida. #* O E R ,T I F I C A T E*# I, H. N. ~ayer, City Clerk of the City of ~anford, Florida, do hereby certify that a true and correct copy of the foregoing Ordinance No. 603 of the City of ~anford, Florida, as PASSED and ADOPTED by the City Commission of the City of Sanford, Florida, on the 31st day of December, 1~56, was PO~TED at the front door of the City Hall of said city on this the 31st day of December, 1~56. WITNE~ my official signature and the corporate seal ~anford, Florida, this 31st day of December, of said City of 1 56.