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HomeMy WebLinkAbout831ORDINANCE NO. 831 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 CERTIFICATES FOR SUCH PURPOSES, " AND PROVIDING FOR THE ISSUANCE OF $800,000 WATER AND SEWER REVENUE CERTIFICATES, SERIES 1964. 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, constituting Chapter 26210, Laws of Florida, Acts of 1949, as amended, and other applicable provisions of law, and pursuant to Section 3.04 (L) of an ordinance entitled: "AN ORDINANCE AUTHORIZ- ING 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 REVE- NUE CERTIFICATES FOR SUCH PURPOSES," adopted by the City Commission of the City of Sanford on the 14th day of December 1953 (hereinafter referred to as "Original Ordi- nance"), and is supplemental to said Original Ordinance. declared: Section 1.02. FINDINGS. It is hereby ascertained, determined and 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 addi- tions, extensions and improvements to said combined Water and Sewer System, as pro- vided herein, in order to preserve the public health and safety of the citizens of the City of Sanford,and it is essential to the 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. D. 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 Vgater System of the combined YVater and Sewer System are pledged in an amount sufficient for the payment of the interest on the following outstanding obligations of said City, together with an amount equal to $6,260 per annum for Sinking Fund purposes: $ 380,000.00 Series B Refunding Bonds, dated IV~arch 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 1937." 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 ~ater 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 the outstanding certificates of an issue of $1,175,000 YVater 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 %/Vater and Sewer Revenue Certificates, dated November 1, 1954, issued pursuant to an ordinance supplemental to said Original Ordinance, to the lien on such net revenues of the holders of the outstanding certifi- cates of an issue of $200,000 Water and Sewer Revenue Certificates, dated iV~ay 1, 1962, 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 \;~ater System of said combined Water and Sewer System are 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 --2-- combined Water and Sewer System are not pledged or encumbered in any manner, except for said outstanding Water and Sewer Revenue Certificates, dated November 1, 1953, issued pursuant to said Original Ordinance; said outstanding Water and Sewer Revenue Certificates, dated November 1, 1954, issued pursuant to an ordinance sup- plemental to said Original Ordinance; said outstanding Water and Sewer Revenue Certificates, dated May 1, 1962 (hereinafter 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 operation and maintenance of said Water and Sewer System, the principal of and interest on the Certificates to be issued pursuant to this ordinance 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 Ordinance and required payments for all other obligations payable from said revenues as the same become due. H. That the principal of and interest on the Certificates to be issued pursuant 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 derived 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 agreements 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 of such Certificates and the coupons attached thereto, all of which shall be of equal rank and without preference, priority or distinc- tion 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 --3-- 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 IMPROVE- MENTS TO SAID COMBINED VCATER AND SEWER SYSTEM. Section 2.01o 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 construction or acquisition of a water treatment plant, extension to the distribution system, new well fields, and other purposes neces- sary, appurtenant '~r incidental thereto, ail in accordance with the over-all plans and specifications heretofore prepared by Clark, Dietz, Painter and Associates, Consult- ing Engineers of Urbana, Illinois, and heretofore filed with and approved by this Com- mission, 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 $800,000. 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 therefor; interest upon Certificates issued pursuant to this ordinance to and including September 30, 1965; engineering and legal expenses; expenses for financial services or fiscal agents; expenses for estimates of costs and 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, EXECUTION AND REGISTRATION OF CERTIFICATES Section 3.01. AUTHORIZATION AND TERMS OF CERTIFICATES. For the purpose of financing the cost of the construction and acquisition of said additions, extensions and improvements to said combined YVater and Sewer System, there shall be issued negotiable Water and Sewer Revenue Certificates, Series 1964, of the City of Sanford, Florida (hereinafter called "Certificates"), in the aggregate principal amount of Eight Hundred Thousand Dollars ($800,000). Said Certificates shall be dated May 1, 1964; shall be in the denomination of $1,000 each; shall be known as "Water and Sewer Revenue Certificates, Series 1964"; shall be numbered consecutively in numerical order from 1 to 800, both inclusive; shall bear interest at a rate not exceed- ing five per centum (5%) per annum, such interest being payable semi-annually on May 1 and November 1 in each year; shall be payable as to both principal and interest at the principal office of the Manufacturers Hanover Trust Company, New York, New York, in lawful money of the United States of America; shall not be registrable; and shall mature serially in numerical order on November 1 of each year as follows: Year Amount Year Amount 1965 $15,000 1977 $25,000 1966 15,000 1978 25,000 1967 15,000 1979 25,000 1968 15,000 1980 25,000 1969 15,000 1981 25,000 1970 20,000 1982 30,000 1971 20,000 1983 40,000 1972 20,000 1984 40,000 1973 20,000 1985 40,000 1974 20,000 1986 75,000 1975 20,000 1987 75,000 1976 20,000 1988 80,000 1989 80,000 The Certificates maturing in the years 1965 to 1974, both inclusive, shall not be redeemable prior to their stated dates of maturity. The Certificates maturing in the years 1975 to 1989, both inclusive, shall be redeemable, at the option of the City, in whole or in part, but in inverse numerical order if less than all, on Novem- ber 1, 1974, or on any interest payment date thereafter, at the price of par and accrued interest to the date of redemption, plus the following premiums, expressed in per- centages of the par value thereof, if redeemed in the following years: Three per centum (3%) if redeemed in the years 1974 to 1979, both inclusive; Two per centum (2%) if redeemed in the years 1980 to 1984, both inclusive; One per centum (1%) if redeemed in the years 1985 to 1989, both inclusive. A notice of prior redemption of said Certificates shall be published at least --5-- once,at least thirty days prior to the date of redemption, in a financial paper pub- lished in the City of Ne~v York. Interest shall cease on any of the Certificates duly called for prior redemption,as provided above , on the redemption date if payment thereof has been duly provided for. Section 3°02. FORM OF CERTIFICATES AND COUPONS. The text of the Certificates and coupons shall be of substantially the following tenor, with such omissions, ins~tions 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 Ordinance, 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 signature of either the Mayor or City Clerk be 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 Said Certificates shall be in substantially signatures of said Mayor and City Clerk. the following form: $1,000 No. UNITED STATES OF AMERICA STATE OF FLORIDA COUNTY OF SEMINOLE CITY OF SANFORD WATER AND SEWER REVENUE CERTIFICATE SERIES 1964 KNOW ALL MEN BY THESE PRESENTS, That the City of Sanford, in Seminole County, Florida, for value received, hereby promises to pay to the bearer, on the first day of November, 19 , from the revenues hereinafter mentioned, the principal sum of ONE THOUSAND DOLLARS with interest thereon at the rate of per centum per annum, payable semi-annually on the 1st day of May and the 1st day of November of 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 at the principal office of the Manufacturers Hanover Trust Company, New York, New -6- once,at least thirty days prior to the date of redemption, in a financial paper pub- lished in the City of New York. Interest shall cease on any of the Certificates duly called for prior redemption,as provided above, on the redemption date if payment thereof has been duly provided for. Section 3.02. FORM OF CERTIFICATES AND COUPONS. The text of the Certificates and coupons shall be of substantially the following tenor, with such omissions, insetions 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 Ordinance, 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 signature of either the Mayor or City Clerk be 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 Said Certificates shall be in substantially signatures of said Mayor and City Clerk. the following form: $1,000 No. UNITED STATES OF AMERICA STATE OF FLORIDA COUNTY OF SEMINOLE CITY OF SANFORD WATER AND SEWER REVENUE CERTIFICATE SERIES 1964 KNOW ALL MEN BY THESE PRESENTS, That the City of Sanford, in Seminole County, Florida, for value received, hereby promises to pay to the bearer, on the first day of November, 19 , from the revenues hereinafter mentioned, the principal sum of ONE THOUSAND DOLLARS with interest thereon at the rate of per centum per annum, payable semi-annually on the 1st day of May and the 1st day of November of 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 at the principal office of the Manufacturers Hanover Trust Company, New York, New -6- York, in lawful money of the United States of America. The Certificates of the issue of which this Certificate is one maturing in the years 1965 to 1974, both inclusive, are not redeemable prior to their stated dates of maturity. The Certificates of the issue of which this Certificate is one maturing in the years 1975 to 1989, both inclusive, are redeemable prior to their stated dates of maturity, at the option of the City, on November 1, 1974, or on any interest payment date thereafter, in whole or in part, but in inverse numerical order if less than all, on November 1, 1974, at a redemption price of par and accrued interest to the date of redemption, plus the following premiums, expressed in percentages of par value thereof, if redeemed in the following years: Three per centum (3%) if redeemed in the years 1974 to 1979, both inclusive; Two per centum (2%) if redeemed in the years 1980 to 1984, both inclusive~ One per centum (1%) if redeemed in the years 1985 to 1989, both inclusive. A notice of prior redemption shall be published at least once, at least thirty days prior to the redemption date, in a financial paper published in the City of New York, New York. Interest shall cease on any of the Certificates duly called for prior redemption, as provided above, on the redemption date if payment thereof has been duly provided for. This Certificate is one of an authorized issue of Certificates in the aggre- gate principal amount of $800,000 of like date, tenor and effect, except as to number (rate of interest) and date of maturity, issued to finance the cost of the construction or acquisition of improvements, extensions and additions to the combined %Afater and Se~Ner System of the City of Sanford, under the authority of and in full compliance with the Constitution and Statutes of the State of Florida, including Chapter 26210, Laws of Florida, Acts of 1949, and other applicable statutes, and an ordinance duly enacted by the City Commission of said City, which ordinance is supplemental to an ordinance adopted December 14, 1953 (herein referred to as "Original Ordinance"), and is subject to all the terms and conditions of said supplemental ordinance and said Original Ordinance, This Certificate and the coupons appertaining thereto are payable solely -7- from and secured by a second lien upon and pledge of the net revenues derived from the operation of the v~ater System of the combined lAfater and Sewer System of the City of Sanford and a first lien upon and pledge of the gross revenues derived from the operation of the Sewer System of said combined !A;ater and Sevger System of the City of Sanford, in the manner provided in said supplemental ordinance and said Original Ordinance. The lien of the holders of the issue of Certificates of which this Certificate is one on the net revenues derived by the City from the Yfater System of said combined lA;ater and Server System is junior, inferior and subordinate in all respects to the lien thereon of the holders of $380, 000~ 00 Series B Refunding Bonds of the City of Sanford, dated March 1, 1937. The lien of the holders of the issue of Certificates of %vhich this is one is on a parity and ranks equally as to lien on and source and security for payment from the net revenues of the ~Vater System and the gross revenues of the Sewer System of said combined Ygater and Server System with the lien of the holders of an issue of $1,175,000 Vfater and Server Revenue Certificates, dated November 1, 1953, issued pursuant to said Original Ordinance; ~vith the lien of the holders of an issue of $2?5,000 lqater and Server Revenue Certificates, dated November 1, 1954, issued pursuant to an ordinance supplemental to said Original Ordinance; and with the lien of the holders of an issue of $200,000 ¥¢ater and Sewer Revenue Certificates, dated May 1, 1962, issued pursuant to an ordinance supplemental to said Original Ordinance. It is further agreed between the City of Sanford and the holder of this Certifi- cate that this Certificate and the obligation evidenced thereby shall not constitute a lien upon the City's combined V~;ater and Sewer System or any part thereof or on any other property of or in the City of Sanford, but shall constitute a lien only on the net revenues derived from the operation of said V~ater System of said combined ~Vater and Se%vet System and the gross revenues of the Se~Ner System of said combined lqater and Sewer System, all in the manner provided in said ordinance and said Original Ordinance. The City, in said ordinance and said Original Ordinance, has covenanted and agreed ~vith the holders of the Certificates of this issue to fix and establish and maintain such rates and collect such fees, rentals or other charges for the services and facilities of the combined ~Vater and Sewer System, and to revise the same from -8- time to time whenever necessary, as will always provide revenues sufficient to pay, and out of said revenues shall pay as the same shall become due, the principal of and interest on the Certificates of this issue, all reserve or sinking funds or other pay- ments provided for in said ordinance and said Original Ordinance, the necessary expenses of operating and maintaining said combined Water and Sewer System, and all other obligations payable out of the revenues of said combined Water and Sewer System; and that such rates, fees, rentals or other charges shall not be reduced so as to be insufficient to provide revenues for such purposes; and said City has entered into certain further covenants with the holders of the Certificates of this issue., for the terms of which reference is made to said ordinance and said Or iginal 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 Constitution of the State of Florida appli- cable thereto, and that the issuance of this Certificate and of the issue of Certificates of which this Certificate is one is in full compliance with all constitutional, statutory or charter limitations or provisions. This Certificate, and the coupons appertaining thereto, is and has all the qualities and incidents of a negotiable instrument under the law merchant and the Negotiable Instruments Law of the State of Florida; and the original holder and each successive holder of this Certificate or of the coupons appertaining thereto shall be conclusively deemed, by his acceptance hereof, to have agreed that this Certificate and the coupons appertaining thereto shall be and have all the qualities and incidents of negotiable instruments under the law merchant and the Negotiable Instruments Law of the State of Florida. The original holder and each successive holder of this Certificate and of the coupons appertaining hereto shall be conclusively deemed to have agreed and consented to the following terms and conditions: (a) Title to this Certificate and to the annexed interest coupons may be transferred by delivery in the manner provided for negotiable instruments payable to bearer in the law merchant and the Negotiable Instruments Law of the State of Florida; (b) Any person in possession of this Certificate or of the interest -9- coupons hereunto appertaining, regardless of the manner in which he shall have acquired possession, is hereby authorized to represent himself as the absolute owner hereof and is hereby granted power to transfer absolute title hereto by delivery hereof 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 ownership enforceable against his transferor; every prior taker or owner of this Certifi- cate and of the annexed interest coupons waives and renounces all of his equities and rights herein in favor of every such bona fide purchaser, and every such bona fide purchaser shall acquire absolute title hereto and to all rights represented hereby; and (c) The City of Sanford, Florida, may treat the bearer of this Certificate or of the interest coupons hereunto appertaining as the absolute owner hereof,for all purposes, without being affected by any notice to the contrary. IN YVITNESS V~;HEREOF, said City of Sanford, Florida, has issued this Certificate and has caused the same to be executed by the manual or facsimile signa- ture of its Mayor and the corporate seal of said City or a facsimile thereof to be affixed hereto or impressed or imprinted hereon, attested by the City Clerk of said City by his manual or facsimile signature, and has caused the interest coupons hereto attached to be executed with the facsimile signature of the said Mayor and City Clerk, all as of the first day of May, 1964. (SEAL) Attest: CITY OF SANFORD, FLORIDA By Mayor City Clerk (FORM OF COUPON) $ NO. On the day of , 19 , the City of Sanford,Florida, will pay to the bearer, at the office of the Manufacturers Hanover Trust Company, New York, New York, in lawful money of the United States of America, from the revenues described in the Certificate to which this coupon is attached, the sum of Dollars ($ ) , upon presentation and surrender of this coupon, being six months' interest then due on its V~ater and Sewer -10- Revenue Certificate, Series 1964, dated May 1, 1964, No. CITY OF SANFORD, FLORIDA B~ Mayor By City Clerk (To be inserted in coupons maturing after callable date on callable Certificates - "unless the Certi ficate to which this coupon is attached has been previously duly called for prior redemption and payment thereof duly provided for. ") (FORM OF VALIDATION CERTIFICATE) This Certificate is one of a series of Certificates which were validated and confirmed by decree of the Circuit Court of the Ninth Judicial Cirouit of Florida, in and for Seminole County, rendered on the day of , 19 Mayor City Clerk ARTICLE IV SECURITY OF CERTIFICATES Section 4.01. CERTIFICATES ON A PARITY WITH THE WATER AND SEWER REVENUE CERTIFICATES, DATED NOVEMBER 1, 1953; THE WATER AND SEWER REVENUE CERTIFICATES, DATED NOVEMBER 1, 1954; AND THE WATER AND SEWER REVENUE CERTIFICATES, DATED MAY 1, 1962. The Certificates issued pursuant to this ordi- nance 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 Certificates, dated Novem- ber 1, 1953, issued pursuant to said Original Ordinance; with the outstanding Water and Sewer Revenue Certificates, dated November 1, 1954, issued pursuant to an ordi- nance supplemental to said Original Ordinance; and the Water and Sewer Revenue Certificates, dated May 1, 1962, 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 Ordi- nance. -11- 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 e~ent as the $1,175,000 Water and Sewer Revenue Certificates, dated Novem- ber 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 ordi- nance supplemental to said Original Ordinance; and the $200,000 Water and Sewer Revenue Certificates, dated May 1, 1962, issued pursuant to an ordinance supplemental to said Original Ordinance; and all of the covenants and agreements contained in said Original Ordinance and the additional covenants contained in said Supplemental Ordi- nances shall be deemed to have been made for the benefit of the holders of the Cer- tificates issued pursuant to this ordinance and of any part 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. All 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 enforce- able in the manner provided in said Original Ordinance and said Supplemental Ordi- nances by any of the holders of Certificates issued pursuant to this ordinance. The Water and Sewer Revenue Fund, the YVater and Sewer Revenue 1953 Sinking Fund and the Reserve Account therein, and the Renewal and Replacement Fund, created and established pursuant to said Original Ordinance and continued and main- tained 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 ordi- nance, 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 RevRnue 1953 Sinking Fund -12- or the Reserve Account therein between said Outstanding Certificates and the Certifi- cates issued pursuant to this ordinance and any pari passu additional obligations hereafter issued pursuant to the terms, limitations and conditions contained in said Original Ordinance. The payments into said Water and Sewer Revenue 1953 Sinking Fund shall be increased by the deposit therein,on the fifteenth day of each month immediately fol- lowing the issuance of the Certificates authorized hereunder, of such sums as will be sufficient to pay one-sixth of the interest maturing on the Certificates on the next semi-annual 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 CertificateS, one-twelfth of the amount of principal maturing on the next principal maturity date; provided, however, that interest on the Certificates herein authorized, to and includ- ing September 30, 1964, be paid from said Construction Trust Fund; and thereafter, at the option of the City, said interest, to and including September 30, 1965, may be paid from the Construction Trust Fund. The City shall also, from the moneys remaining in said vVater and Sewer Revenue Fund, deposit in the ~{eserve Account in said Water and Sewer Revenue 1953 Sinking Fund, in addition to the amounts required to be deposited therein for the Out- standing 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 vVater 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 REDEMPTION FUND FOR THE OUTSTANDING BONDS OF 1937. 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 3.03 (D) (7) of said Original Ordinance, after all other payments -13- required by Section 3.03 (D) (7) of said Original Ordinance, for the maintenance of the fund for the redemption of said Outstanding Bonds of 1937, created by an ordinance dated April 17, 1962, supplementing said Original Ordinance and designated as the "19~? Bond Redemption Fund"; said 1937 Bond Redemption Fund to be continued and maintained so long as any of the Certificates issued pursuant to this ordinance or interest thereon are outstanding and unpaid. From such surplus revenues, the City shall deposit in said 1~.37~Bond Redemption Fund the following amounts, on the fifteenth day of each month, at the following times: April 1S, 1964 to August September 15, 1964 to August September 15, 1965 to August September 15, 1966 to August September 15, 1967 to August September 15, 1968 to August September 15, 1969 to August September 15, 1970 to August September 15, 1971 to August September 15, 1972 to August September 15, 1973 to August September 15, 1974 to AuguSt 15, 1964 -$ 895.00 15, 1965 - 1,145.00 15, 1966 - 1,145.00 15, 1967 - 1,395.00 15, 1968 - 1,395.00 15, 1969 - 1,478.00 15, 1970 - 1,645.00 15, 1971 - 1,812.00 15, 1972 - 1,978.00 15, 1973 - 2,229.00 15, 1974 - 2,312.00 15, 1975 - 2,478.00 )er month September 15, 1975 to August 15, 1976 - 2,728.00 September 15, 1976 to August 15, 1977- 2,895.00" Such surplus revenues shall not be deposited by said City into said 1937 Bond Redemption Fund unless all of the provisions of Section 3.03 (D), 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, begin- ning on June 1, 1964, and on each July 1 thereafter, whenever the aggregate amount of moneys in said 1937 Bond Redemption Fund exceed $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 -14- be invested in direct obligations of the United States Government which would pro- duce 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 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 3.03 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. All moneys received from the sale of any or all of the $800,000 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 1964," and shall be used and applied by the City solely to the payment of the cost of the construction and acquisition of the additions, exten- sions and improvements to said combined !~/ater and Sewer System, as provided in this ordinance, and for no other purpose whatsoever. Said fund shall be maintained by the City in an incorporated bank or trust company which has an aggregate capital and surplus of not less than $260,000; 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 legal and engineering expenses, expenses for financial or fiscal services, interest on the Certificates authorized by this ordinance to and including September 30, 1964; -15- thereafter, at the option of the City, interest on the Certificates authorized by this ordinance to and including September 30, 1965; and expenses in connection with the authorization and issuance of the Certificates authorized by this ordinance, except upon the certificate of Clark, Dietz, Painter and Associates, Consulting Engineers, of Urbana, Illinois, or their successors as consulting engineers, that such with- drawals are proper and are for purposes provided for in this ordinance. 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 pur- suant to said Original Ordinance and shall be used only for the purposes provided therein. All 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. ARTICLE VI MISCELLANEOUS Section 6.01. MODIFICATION OR AMENDMENT. No material modification 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 Certificates 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 principal 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 com- bined 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, agreements or provisions of this ordinance shall be held contrary to any express provision of law or contrary to 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 or provisions shall be null and void -16- and shall be deemed Separable from the remaining COvenants, agreements or provi- sions and shall in no way affect the validity of any of the other provisions of this ordinance or of the Certificates or coupons issued hereunder. Section 6.03. VALIDATION AUTHORIZED. That PV. C. Hutchison, Jr., Esquire, City Attorney for the City of Sanford, be, and he is, hereby authorized and directed to prepare and file proceedings to validate the Certificates authorized by this ordinance in the manner provided by law. Section 6.04. TIME OF TAKING EFFECT. That it is necessary for the immediate preservation of property, health and safety of the City of Sanford and its inhabitants that the construction and acquisition of the additions, extensions and improvements to said combined Water and Sewer System provided herein be made with the least possible delay; and this ordinance is hereby declared to be an emergency measure and shall take effect immediately upon its passage. PASSED AND ADOPTED this (SEAL) ATTEST: C.--'~ Cit~Clerk ,~' ~/- -- 13 day of April , 1964. As the City Commissio~y~e ci~- of Sanford, Florida. -17- 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. 831, PASSED and ADOPTED by the City Commission of the City of Sanford, Florida, on the 13th day of April, 1964, was POSTED at the front door of the City Hall in the City of Sanford, Florida, on the 14th day April, 1964.