HomeMy WebLinkAbout1053 ORDINANCE NO. 1053
AN ORDINANCE SUPPLEMENTING AN ORDINANCE ENTITLED
"AN ORDINANCE AUTHORIZING THE CONSTRUCTION OR
ACQUISITION OF ADDITIONS, EXTENSIONS AND IMPROVE-
MENTS TO THE COMBINED WATER AND SEWER SYSTEM OF THE
CITY OF SANFORD, FLORIDA, AND AUTHORIZING THE
ISSUANCE OF $1,175,000 WATER AND SEWER REVENUE CER-
TIFICATES FOR SUCH PURPOSES," AND PROVIDING FOR THE
ISSUANCE OF $1,325,000 WATER AND SEWER REVENUE CERTI-
FICATE~, SERIES 1971.
BE IT ENACTED BY THE PEOPLE OF THE CITY OF SANFORD, FLORIDA:
ARTICLE I
STATUTORY AUTHORITY, FINDINGS AND DEFINITIONS
SECTION 1.01. AUTHORITY OF THIS ORDINANCE. This Ordinance is
adopted pursuant to the Charter of the City of Sanford, Florida, consti-
tuting Chapter 26210, Laws of Florida, Acts of 1949, as amended, and othe~
applicable provisions of law, and pursuant to Section 3.04 (L) of an
ordinance entitled: "AN ORDINANCE AUTHORIZING THE CONSTRUCTION OR ACQUI-
SITION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE COMBINED WATER AND
SEWER SYSTEM OF THE CITY OF SANFORD, FLORIDA, AND AUTHORIZING THE ISSUA
OF $1,175,000 WATER AND SEWER REVENUE CERTIFICATES FOR SUCH PURPOSES,"
adopted by the City Commllssion of the City of Sanford on the 14th day of
December, 1953 (hereinafter referred to as "Original Ordinance"), and is
supplemental to said Original Ordinance.
SECTION 1.02. FINDINGS. It is hereby ascertained, determined
and declared:
A. That the City of Sanford, Florida (hereinafter called the
"City"), now owns, operates and maintains a combined Water and Sewer
System for the purpose of supplying water and sewerage services in and to
said City and its inhabitants.
B. That it is necessary and essential to construct and acquire
additions, extensions and improvements to said combined Water and Sewer
System, as provided herein, in order to preserve the public health and
safety of the citizens of the City of Sanford, and it is essential to
physical and economic welfare of said City that such improvements be
accomplished as provided in this Ordinance.
C. That said Original Ordinance, in Section 3.04 (L) thereof,
provides for the issuance of additional pari passu certificates under the
terms, limitations and conditions provided therein, and the issuance of
the Certificates authorized by this ordinance complies fully with the
terms, limitations and conditions of said section.
Do That the City is authorized to issue the Certificates
authorized herein as pari passu additional obligations within the
authorization contained in Section 3~04 (L) of said Original Ordinance~
E. That the net revenues derived or to be derived from said
Water System of the combined Water and Sewer System are pledged in an
amount sufficient for the payment of the interest on the following out-
standing obligations of said City, together with an amount equal to
$6~260 per annum for Sinking Fund purposes:
$275,000 Series B Refunding Bonds, dated March 1, 1937, and
all maturing September 1, 1977, being the bonds now outstanding
of an original issue of $626,000 Series B Refunding Bonds
authorized by resolution of the City Commission of said City
adopted on February 1, 1937, hereinafter sometimes referred to
as "Outstanding Bonds of 1937o" That the holders of said
Outstanding Bonds of 1937 have a first lien on the net revenues
derived from the operation of said Water System of said combined
Water and Sewer System~ in the amount above stated, which lien
is prior and superior to the lien on such net revenues of the
holders of outstanding certificates of an issue of $1,175~000
Water and Sewer Revenue Certificates dated November 1, 1953~
issued pursuant to said Original Ordinance, to the lien on such
net revenues of the holders of the outstanding certificates of
an issue of $275,000 Water and Sewer Revenue Certificates~ dated
November 1~ 1954, issued pmrsuant to an ordinance supplemental
to said Original Ordinance, to the lien on such net revenues of
the holders of the outstanding certificates of an issue of
$200,000 Water and Sewer Revenue Certificates, dated May 1,
1962, issued pursuant to an ordinance supplemental to said
Original Ordinance, to the lien on such net revenues of the
holders of the outstanding certificates of an issue of $800,000
Water and Sewer Revenue Certificates, dated May 1, 19~4~ issued
pursuant to an ordinance supplemental to said Original Ordinance,
and to the lien on such net revenues of the holders of the
Certificates authorized to be issued by this Ordinance.
F. That the revenues of the Water System of said combined Water
and Sewer System sre not pledged or encumbered in any manner, except as
described in subsection E above~ and the revenues to be derived from the
Sewer System of said combined Water and Sewer System are not pledged or
encumbered in any manner, except for said outstanding Water and Sewer Revenue
Certificates, dated November I, 1953, issued pursuant to said Original
Ordinance; said outstanding Water and Sewer Revenue Certificates, dated
November 1, 1954; said outstanding Water and Sewer Revenue Certificates,
dated May 1, 1962; said outstanding Water and Sewer Revenue Certificates,
dated May 1, 1964 (herei~after sometimes collectively referred to as
"Outstanding Certificates"); and the Certificates authorized to be issued
pursuant to this Ordinance.
G. That the estimated revenues to be derived in each year
hereafter from the operation of said combined Water and Sewer System will
be sufficient to pay all the cost of the
Water and Sewer System~ the principal of
to be issued pursuant to this Ordinance,
operation and maintenance of said
and inter~st on the Certificates
and said Outstanding Certificates
as the same become due and payable~ and all sinking fund, reserve, and
other payments provided for in this Ordinance and in said Original Ordi-
nance and required payments for all other obligations payable from said
revenues as the same become due.
Ho That the principal of and interest on the Certificates to be
issued pursusnt to this Ordinance and all of the sinking fund, reserve,
and other payments provided for in this Ordinance will be paid solely from
the revenues deri~ed from the operation of said combined Water and Sewer
System and shall not constitute a debt of said City or be a lien on any
real estate therein.
SECTION 1.03. ORDINANCE CONSTITUTES CONTRACT. In consideration
of the acceptance of the Certificates authorized to be issued hereunder by
those who shall hold the same from time to time~ this Ordinance and said
Original Ordinance shall be deemed to be and shall constitute a contract
between the City of Sanford, Florida~ and such Certificate holders; and
the covenants and agreemenvs herein set forth to be performed by said City
shall be for the equal benefit~ protection and security of the legal
holders of any and all such Certificates and the coupons attached thereto~
all of which shall be of equal rank and without preference, priority or
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distinction of any of the Certificates or coupons over any other thereof
except as expressly provided therein and herein.
SECTION 1.04. DEFINITIONS. That all the definitions contained
in Section 1.04 of said Original Ordinance, in addition to the definitions
contained herein~ shall apply fully to the Certificates issued hereunder.
ARTICLE II
AUTHORIZATION OF ADDITIONS, EXTENSIONS AND
IMPROVEMENTS TO SAID COMBINED WATER AND SEWER SYSTEM
SECTION 2.01. AUTHORIZATION OF ADDITIONS, EXTENSIONS AND
IMPROVEMENTS. That there is hereby authorized the construction and
acquisition of additions, extensions and improvements to said combined
Water and Sewer System, consisting of but not limited to the installation
of secondary waste water treatment facilities and other purposes necessary~
appurtenant or incidental thereto, all in accordance with the over-all
plans and specifications heretofore prepared by Clark, Dietz & Associates,
Inc., Consulting Engineers of Urbana~ Illinois, and heretofore filed with
and approved by this Commission, together with such modifications, changes
or alterations as shall be necessary and desirable and approved by this
Commission and the Consulting Engineers, at an estimated cost of $1,325,000.
Such cost shall be deemed to include but not limited to the construction or
acquisition of said additions, extensions and improvements to said Water
and Sewer System; the acquisition of any lands or interest therein or of
any fixtures, equipment or properties deemed necessary or desirable there-
for~ interest upon certificates issued pursuant to this Ordinance to and
including November 1, 1972; engineering and legal expenses; expenses for
financial services or fiscal agents; expenses for estimates of costs of
revenues; expenses for plans~ specifications and surveys; expenses of the
authorization, issuance and sale of the Certificates authorized by this
Ordinance; and such other expenses as may be necessary or incidental to
the financing authorized by this Ordinance and the construction and
acquisition of said additions, extensions and improvements to said combined
Water and Sewer System.
ARTICLE III
AUTHORIZATION, TERMS,
SECTION 3.01.
purpose of financing the
EXECUTION AND REGISTRATION OF CERTIFICATES
AUTHORIZATION AND TERMS OF CERTIFICATES. For the
cost of the construction and acquisition of said
additions, extensions and improvements
combined Water and Sewer System, there
and Sewer Revenue Certificates~ Series
Florida (hereinafter
shall
i971,
called "Certificates"),
to said
be issued negotiable Water
of the City of Sanford,
in the aggregate principal
shall cease on any
as provided above,
provided for.
amount of One Million Three Hundred Twenty-five Thousand Dollars ($1,325,000).
Said Certificates shall be dated November 1, 1971; shall be in the denomina-
tion of $5,000 each; shall be known as '~Water and Sewer Revenue Certificates,
Series 1971"; shall be numbered consecutively in numerical order from one
upward; shall bear interest at such rate or rates not exceeding the maximum
legal rate, such interest being payable semiannually on May 1 and November 1
in each year; shall be payable as to both principal and interest at the
principal office of the Florida State Bank of Sanford, Sanford, Florida~ in
lawful money of the United States of America; shall not be registrable; and
shall mature serially in numerical order on November 1 at such time or
times not exceeding thirty (30) years from the date thereof and in such
amounts as shall be determined by the City prior to the sale of the Certi-
ficates.
The Certificates may be redeemed prior to their stated dates of
maturity, either in whole or in part~ at such times and upon such terms as
shall be determined by the City prior to the sale thereof.
A notice of prior redemption of said Certificates shall be pub-
lished at least once, at least thirty (30) days prior to the date of
redemption in a financial papar published in the City of New York. Interest
of the Certificates duly called for prior redemption,
on the redemption date if payment thereof has been duly
SECTION 3.02. FORM OF CERTIFICATES AND COUPONS.
the Certificates and coupons shall be of substantially the
with such omissions~ insertions and variations as may be necessary and
desirable and authorized or permitted by this Ordinance or any subsequent
ordinance adopted prior to the issuance thereof. Said Certificates shall
be executed in the manner provided in said Original Ordinance and shall in
all respects be subject to the conditions provided in said Original Ordi-
nance, except that such Certificates and the validation legend appearing
thereon may be executed by the facsimile signatures of the Mayor and City
Clerk, provided that the sigrature of either the Mayor or City Clerk be
The text of
following tenor,
manually applied to said Certificates and the corporate seal of the City
or a facsimile thereof may be imprinted, impressed or otherwise reproduced
thereon.
The coupons attached to the Certificates shall be executed by
the facsimile signatures of said Mayor and City Clerk. Said Certificates
shall be in substantially the following form:
NO.
UNITED STATES OF AMERICA
STATE OF FLORIDA
CITY OF SANFORD
WATER AND SEWER REVENUE CERTIFICATE
SERIES 1972
$5,000
KNOW ALL MEN BY THESE PRESENTS, That the City of Sanford~ Florida
(hereinafter called "City"), for value received, hereby promises to pay to
the bearer, from the special funds hereinafter mentioned, the principal sum
of
FIVE THOUSAND DOLLARS
and to pay, solely from such special funds, interest thereon from the date
hereof~ at the rate of per centum ( %)
per annum until payment of the principal sum, such interest to the maturity
hereof, being payable semiannually on the first day of May and the first
day of November in each year upon the presentation and surrender of the
annexed coupons as they severally fall due. Both principal of and interest
on this Certificate are payable in lawful money of the United States of
America at the ~orida State Bank of Sanford, Sanford, Florida.
This Certificate is one of an authorized lssue of certificates
in the aggregate principal amount of $1,325,000 of like date, tenor and
effect, except as to number, interest rate and date of maturity, issued to
finance the cost of the construction and acquisition of extensions, addi-
tions and improvements to the combined Water and Sewer System of the City
(hereinafter called "system"), under the authority of and in full compliance
with the Constitution and Statutes of the State of Florida, including
particularly Chapter 26210, Laws of Florida, Special Acts of 1949, as
amended and supplemented, and other applicable provisions of law, and
Ordinance No. 532, enacted by the City on the 14th day of December, 1953,
as supplemented by Ordinance No.
· enacted on the day of ,
19. (hereinafter collectively ca~ed "Ordinance"), and is subject to all
the terms and conditions of such Ordinance.
It is provided in such Ordinance that the Certificates of this
issue will rank on a parity with the outstanding Water and Sewer Revenue
Certificates dated November 1, 1953; the Water and Sewer Revenue Certifi-
cates dated November 1, 1952; the Water and Sewer Revenue Certificates
dated May 1, 1962; and the Water and Sewer Revenue Certificates dated May 1,
1964 (hereinafter called "Outstanding Certificates") as to lien and sources
of security. This Certificate, the Outstanding Certificates, and the
coupons appertaining thereto are payable solely from and secured by a lien
upon and pledge of the net revenues derived by the City from the operation
of the system in the manner provided in the Ordinance. The lien of the
holders of the Certificates of this issue and of the holders of the Out-
standing Certificates on the net reven~es of the Water System of the com-
bined Water and Sewer System is jmnior, inferior and subordinate to the
lien thereon of the holders of certain outstanding Series B Refunding Bonds
of the City dated March I, 1937.
Notice
by the Ordinance.
(Insert Redemption Provisions)
of such redemption shall be given in the manner required
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This Certificate does not constitute an indebtedness of the City
within the meaning of any constitutional or statutory provision or limita-
tion, and it is expressly agreed by the holder of this Certificate and the
coupons appertaining thereto that such holder shall never have the right to
require or compel the exercise of the ad valorem taxing power of the City
for the payment of the principal of and interest on this Certificate or the
making of any sinking fund, reserve or other payments provided for in the
Ordinance. '
It is further agreed between the City and the holder of this
Certificate that this Certificate and the obligation evidenced thereby
shall not constitute a lien upon the system or any part thereof or on
any other property of or in the City, but shall constitute a lien only on
the net revenues derived from the operation of the system in the manner
provided in the Ordinance~
The City~ in the Ordinance, has covenanted and agreed with the
holders of the Certificates of this issue to f~x~. establish and maintain
such rates and collect suoh fees~ rentals or other charges for the ser-
vices of the system,and to ~evise the same from time to time whenever
necessar as wi~ · ~ ·
~ Y, ~1 alway~ provide revenues in each year sufficient to pay
~±~ costs of operation and maintenance of t~e syste~ in such .
~undred thirty per centum (1~0%) of the ~rinci~al
mn such year on the Certificates of this issue~ and on ali. other obliga-
tions payable on a parity therewith~ plus one hundred per centum (100~) of
all reserve and other payments Drovideg for in such Ordinance, and that
such rates, fees, rentals or ot~er charges shall not be reduced so as to
be insufficient to provide adequate revenues for such purposes; and the
City has entered into certain further Covenants with the holders of the
Certificates of this
z.osue for the terms of which reference is made to the
Ordinance.
It is hereby certified and recited that all acts, conditions and
things required to exist, to happen and to be performed precedent to and
in the issuance of this Certificate exist, have happened and have been
performed in regular and due form and time as required by the Laws and
Cnnstitution of the State of Florida applicable thereto, and that the
issuance of the Certificate of this issue does not violate any constitu-
tional or statutory limitation or provision~
This Certificate and the coupons appertaining thereto are and
have all the qualities and incidents of a negotiable instrument under the
law merchant and Laws of the State of Florida.
IN WITNESS WHEREOF~ the City of Sanford, Florida, has issued
this Certificate and has caused the same to be signed by its Mayor and
attested and countersigned by its City Clerk, either manually or with
thier facsimile signatures, and the corporate seal of said City or a fac-
simile thereof to be affixed~ impressed, imprinted, lithographed or
reproduced hereon and the interest coupons hereto attached to be executed
with the facsimile signatues of such officers; all as of the first day of
November, 1971.
(SEAm)
ATTESTED AND COUNTERSIGNED
City Clerk
CITY OF SANFORD, FLORIDA
Mayor
No. FORM OF COUPON $
On the first day of , 19 , unless the Certificate to
which this coupon is attached is callable and--has been duly called for
prior redemption and provision duly made for the payment thereof~ the City
of Sanford, Florida, will pay to the bearer at the Florida State Bank of
Sanford, Sanford, Florida, from the special funds described in the Certi-
ficate to which this coupon is attached, the amount shown hereon in lawful
money of the United States of America~ upon presentation and surrender of
this coupon, being six months' interest then due on its Water and Sewer
Revenue Certifi~-~
~e, Series 1971, dated November 1, 1971, No.
(SEAL)
ATTESTED AND COUNTERSIGNED
City Clerk
CITY OF SANFORD, FLORIDA
Mayor
VALIDATION CERTIFICATE
This Certificate is one of the seri~ of Certificates which
were validated and confirmed by judgment of the Circuit Court for Seminole
County, Florida, rendered on the day of , 19__.
City Clerk
Mayor
ARTICLE IV
SECURITY OF CERTIFICATES
SECTION 4.01. CERTIFICATES ON A PARITY WITH THE WATER AND
SEWER REVENUE CERTIFICATES DATED NOVEMBER 1, lP53; THE WATER AND SEWER
REVENUE CERTIFICATES DATED NOVEMBER 1, 1954; THE WATER AND SEWER REVENUE
CERTIFICATES DATED MAY 1: 1962; AND THE WATER AND SEWER REVENUE CERTIFi-
CATES DATED MAY 1, 1964. The Certificates issued pursuant to this Ordinance
shall be on a parity and rank equally, as to lien on and source and security
for payment from the revenues of said combined Water and Sewer System and
in all other respects with the outstanding Water and Sewer Revenue Certifi-
cates,dated November 1, 1953, issued pursuant to said Original Ordinance;
with the outstanding Water and Sewer Revenue Certificates, dated November I,
1954, issued pursuant to an ordinance supplemental to said Original Ordi-
nance; the Water and Sewer Revenue Certificates, dated May 1, 1962, issued
pursuant to an ordinance supplemental to said Original Ordinance; and the
Water and Sewer Revenue Certificates, dated May 1, 1964, issued pursuant to
an ordinance supplemental to said Original Ordinance (hereinafter sometimes
referred to as "Supplemental Ordinances") and any pari passu additional
obligations hereafter issued pursuant to and within the terms, limitations
and conditions contained in Section 3.04 (L) of said Original Ordinance.
SECTION 4.02. CERTIFICATES SECURED BY ORIGINAL ORDINANCE. The
Certificates authorized by this Ordinance shall be deemed to have been
issued pursuant to said Original Ordinance (to which this Ordinance is
supplemental) as fully and to the same extent as the $1,1Z5,000 Water
and Sewer Revenue Certificates, dated November 1, 1953, originally issued
pursuant to said Original Ordinance; the $275,000 Water and Sewer Revenue
Certificates, dated November 1, 1954, issued pursuant to an ordinance
supplemental to said Original Ordinance; the $200,000 Water and Sewer
Revenue Certificates, dated May 1, 1962, issued pursuant to an ordinance
supplemental to said Original Ordinance; and the Water and Sewer Revenue
Certificates, dated May 1, 1964, issued pursuant to an ordinance supple-
mental to said Original Ordinance; and all of the covenants and agreements
contained in said Original Ordinance and the additional covenants contained
in said Supplemental Ordinances shall be deemed to have been made for the
benefit of the holders of the Certificates issued pursuant to this Ordinance
and of any pari passu additional obligations hereafter issued within the
terms, limitations and conditions contained in Section 3.04 (L) of said
Original Ordinance as fully and to the same extent as for the holders of
said Outstanding Certificates.
Ail of the covenants, agreements and provisions of said Original
Ordinance and the additional covenants contained in said Supplemental
Ordinances (except as to details inconsistent with this Ordinance) shall be
deemed to be part of this Ordinance to the same extent as if incorporated
verbatim in this Ordinance and shall be fully enforceable in the manner
provided in said Original Ordinance and said Supplemental Ordinances by
any of the holders of Certificates issued pursuant to this Ordinance.
The Water and Sewer Revenue Fund, the Water and Sewer Revenue
1953 Sinking Fund and the Reserve Account therein, and the Renewal and
Replacement Fund~ created and established pursuant to said Original Ordi-
nance and continued and maintained by said Supplemental Ordinances, shall
be continued and maintained as provided in said Original Ordinance as long
as any of the Certificates issued pursuant to this Ordinance or interest
thereon are outstanding and unpaid; and the payments into said Water and
Sewer Revenue 1953 Sinking Fund and the Reserve Account therein shall be
increased by the amounts necessary for the Certificates issued pursuant to
this Ordinance, as set out below, and no preference, priority or distinction
of any kind shall exist or be exercised in payments from said Water and
Sewer Revenue 1953 Sinking Fund or the Reserve Account therein between
said Outstanding Certificates and the Certificates issued pursuant to
this Ordinance and any peri passu additional obligations hereafter issued
pursuant to the terms,limitations and conditions contained in said Origi-
nal Ordinance.
The payments into said Water and Sower Revenue 1953 Sinking
Fund shall be increased by the deposit therein, on the fifteenth day of
each month immediately following the issuance of the Certificates author-
ized hereunder, of such sums as will be sufficient to pay one-sixth of
the interest maturing on the Certificates on the next semiannual interest
payment date and~ beginning with the fifteenth day of the month which is
twelve months prior to the first principal maturity date of such Certifi-
cates, one-twelfth of the amount of principal maturing on the next prin-
cipal maturity date; provided, however, that interest on the Certificates
herein authorized, to and including November 1, 1972, may be paid from the
Construction Trust Fund.
The City shall also, from the moneys remaining in said Water
and Sewer Revenue Fund, deposit in the Reserve Account in said Water and
Sewer Revenue 1953 Sinking Fund, in addition to the amounts required to
be deposited therein for the Outstanding Certificates, on the fifteenth
day of each month immediately following the issuance of the Certificates
authorized hereunder, an amount equal to 20~ of the amount required to be
deposited in the Water and Sewer Revenue 1953 Sinking Fund on such date
as provided above; provided that no further payment shall be required to
be made into said Reserve Account When there shall have been deposited
therein, and as long as there remains therein, an amount equal to 120~ of
the largest amount of principal and interest which will be required for
the payment of principal of and interest on the Certificates herein
authorized to be issued and on the Outstanding Certificates in any one
succeeding year.
SECTION 4.03. BOND REDE~PTION FUND FOR THE OUTSTANDING BONDS
OF 1~37. The City further Covenants that it will use all the surplus
revenues from said Water and Sewer System, which the City is entitled to
receive as general funds under Section 3.04 (D) (7) of said Original
Ordinance, after all other payments required by Section ~.04 (D) (7) of
said Original Ordinance, for the maintenance of the fund for the redemp-
tion of said Outstanding Bonds of 1937, created by an ordinance dated
April 17, 1962, supplementing said Original Ordinance and designated as
the "1937 Bond Redemption Fund"; said 1937 Bond Redemption Fund to be
continued and maintained so long as any of the Certificates issued pur-
suant to this Ordinance or interest thereon are outstanding and unpaid.
From such surplus revenues, the City shall deposit in said
1937 Bond Redemption Fund the following amounts, on the fifteenth day of
each month, at the following times:
September
September 15, 1972 to August 15, 1973
September 15, 1973 to August 15, 1974
September ].5, 1974 to August 15, 1975 -
September 15~ 1975 to August 15, 1976 -
September 15, 1976 to August 15, 1977 -
15, 1971 to August 15, 1972 - $1,978.00 per month
2,229.00 per month
2,312.00 per month
2,478.00 per month
2,728.00 per month
2,895.00 per month
said 1937
3.o4
Such surplus revenues shall not be deposited by said City into
Bond Redemption Fund unless all of the provisions of Section
1 through 6 thereof, of the Original Ordinance have been fully
complied with.
The moneys on deposit in said 1937 Bond Redemption Fund may be
used by the City at any time for the purchase of Outstanding Bonds of
1937 at a price not exceeding the par value thereof and accrued interest
thereon. The City shall, on July 1, 1972, and on each July 1 thereafter~
whenever the aggregate amount of moneys in said 1937 Bond Redemption Fund
exceeds $20,000, call for tenders for the purchase of a sufficient amount
of such Outstanding Bonds of 1937 to exhaust the amount of moneys in said
1937 Bond Redemption Fund as nearly as possible; such tenders to be
received by said City between August 1 and August 8 of each year, the
exact date to be determined by resolution of the City; and the City, on
receipt of such tenders, may reject or accept the same; provided, however,
that such tenders must be accepted by the City if the moneys in said 1937
Bond Redemption Fund cannot be invested in direct obligations of the
United States Government which would produce a net interest yield of not
less than 3% to said City. In the event the City refuses to accept such
tenders, all moneys in excess of $20,000 then on deposit in said Fund
shall be invested in direct obligations of the United States of America
maturing not later than September 1, 1977. No further payment will be
required to be made into said Bond Redemption Fund when the amount on
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deposit therein is sufficient to retire all of the then Outstanding Bonds
of 1937.
Thereafter, from the surplus revenues remaining and prior to
the use of such surplus revenues for the purchase or redemption of the
Outstanding Certificates as provided for in Section 3.04 of said
Original Ordinance, there may be transferred to the general funds of said
City in each year an amount of not exceeding $40,000; provided, however,
that as long as any of said Outstanding Certificates are unpaid, all of
the provisions and covenants contained in said Original Ordinance, as now
existing and as the same may be legally amended, shall be fully complied
with and performed.
ARTICLE V
APPLICATION OF CERTIFICATE PROCEEDS
SECTION 5.01. CONSTRUCTION TRUST FUND. Ail moneys received
from the sale of any or all of the $1,325,000 Certificates issued pursuant
to this Ordinance shall be deposited by the City of Sanford in a trust
fund, to be known as the "Construction Trust Fund of 1971," and shall be
used and applied by the City solely to the payment of the cost of the
construction and acquisition of the additions, extensions, and improve-
ments to said combined Water and Sewer System, as provided in this
Ordinance~ and for no other purpose whatsoever. Said fund shall be main-
tained by the City in an incorporated bank or trust company which has an
aggregate capital and surplus of not less than $1,000,000; and all moneys
at any time in said Construction Trust Fund shall be continuously secured
in the same manner as deposits of state and municipal funds are required
to be secured by the present laws of the State of Florida. No withdrawals
shall be made from said Construction Trust Fund, except for payment into
the Reserve Account of sufficient funds so that the amount in such account
will equal the largest principal and interest due in any year thereafter
on the parity certificates and on the certificates issued pursuant to this
Ordinance; legal and engineering expenses; expenses for financial or
fiscal services; interest
to and including November
authorization and issuance
except
drawals
on the Certificates authorized by this Ordinance
1, 1972; and expenses in connection with the
of the Certificates authorized by this Ordinane~
upon the certificate of the consulting engineers that such with-
are proper and are for purposes provided for in this Ordinance.
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If for any reason such proceeds, or any part thereof, are not necessary
for or are not applied to such purposes, then such unapplied proceeds
shall be deposited by the City in the Reserve Account in the Water and
Sewer Revenue 1953 Sinking Fund established pursuant to said Original
Ordinance and shall be used only for the purposes provided therein. Ail
moneys in such Construction Trust Fund shall constitute a trust fund for
such purposes, and there is hereby created a lien upon such fund, until
so applied, in favor of the holders of the Certificates issued pursuant
to this Ordinance.
Any funds on deposit in the Construction Fund which, in the
opinion of the City, acting upon the recommendation of the consulting
engineers, are not ~mmediately necessary for expenditure, as hereinabove
provided, may be invested in direct obligations of the United States of
America or placed in time deposits of banks or trust companies represented
by certificates of deposit fully secured as provided by law maturing in
a period of ninety-one (91) days pr less. Ail such securities shall be
held by the depository bank, and all income derived therefrom shall be
deposited in such Reserve Account.
ARTICLE VI
MISCELLANEOUS
SECTION 6.01. MODIFICATION OR AMENDMENT. No material modifi-
cation or amendment of this Ordinance or of any ordinance amendatory
hereof or supplemental hereto may be made without the consent in writing
of the holders of two-thirds or more in principal amount of the Certifi-
cates then outstanding; provided, however, that no modification or
amendment shall permit a change in the maturity of such Certificates or a
reduction in the rate of interest thereon or in the amount of the prin-
cipal obligation thereof or affecting the unconditional promise of the
City to pay the principal of and interest on the Certificates as the
same shall come due, from the revenues of the combined Water and Sewer
System, or reduce the percentage of Certificate holders required to
consent to any material modification or amendment of this Ordinance
without the consent of the holders of such Certificates.
SECTION 6.02. SEVERABILITY OF INVALID PROVISION. If any one
or more of the covenants,
shall be held contrary to
agreements or provisions of this Ordinance
any express provision of law or contrary to
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the policy of express law, though not expressly prohibited, or against
public policy, or shall for any reason whatsoever be held invalid, then
such covenants, agreements and provisions shall be null and void and
shall be deemed separable from the remaining covenants, agreements or
provisions and shall in no way affect the validity of any of the provi-
sions of this Ordinance or of the Certificates or coupons issued here-
under.
SECTION 6.03. VALIDATION AUTHORIZED. The City Attorney for
the City of Sanford be and he is hereby authorized and directed to pre-
pare and file proceedings to validate the Certificates authorized by this
Ordinance in the manner provided by law.
SECTION 6.04. TIME OF TAKING EFFECT. This Ordinance shall
take effect in the manner provided by law.
PASSED AND ADOPTED this
A.D. 1972.
Ma¸
Attest:
10th day of January
S E A L ) As the City ~on of the
City of Sanford, ~lorida.
CERTIFICATE
I, H. N. Tamm, Jr., City Clerk of the City of Sanford,
Florida, do hereby certify that a true and correct copy of the
foregoing Ordinance No. 1053, PASSED and ADOPTED by the City
Con~nission of the City of Sanford, Florida, on the 10th day of
January, 1972, was POSTED at the front door of the City Hall in
the City of Sanford, Florida, on the llth day of January, 1972.
As t~C~L~ty dle~k~g{
City of Sanford, Florida
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