022130MINUTES
CITY COMMISSION, SANFORD, FLORIDA,Ad j ourned Session Feb. 2119
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The City Commission of the City of Sanford, Florida, met in adjourned session
at the City hall in Sanford, Florida, at 3 o'clock P. M., February 219t, 1930.
Present : Commissioner H. J. Lehman, Mayor
" Frank L. Miller
" W. A. Leffler
" R. A. Newman
" Vivian A. Speer
City Attorney Fred R. Wilson
Associate Counsel Cary D. Landis
City Clerk F. S. Lamson
The purpose of the meeting was to confer with City Attorney Wilson and
Associate Counsel Landis with reference to a proposed letter to be sent to owners of City of
Sanford bonds, outlining the true facts and conditions relative to the bond debt of the City
of Sanford.
A letter prepared by Commissioner Speer was presented to the Commission and
discussed.
Commissioner Newman then moved that the letter prepared by Commissioner Speer,
with a few changes recommended by�Qommission, be adopted, that a copy thereof be mailed to all
owners of City of Sanford bonds, that a copy be published once in the Daily Bond Buyer, and
that this letter be made a matter of record and spread on the Minutes.
Commission.
Seconded by Commissioner Miller and adopted by the unanimous vote of the
The letter adopted by the foregoing motion follows :
TO OWNERS OF BONDS Or THE CITY OF SANFORD, FLORIDA
Numerous inquiries have been received requesting information relating to our debt payment.
The following summary of the answers to these questions has been prepared and this state-
ment is issued that all bond owners may be informed as to the true facts and conditions.
Sanford is a railroad and farming town, having a population of 9626 people in 1925, of
which 1196 are tax payers, 303 being colored.
During the years of the real estate "boom" in Florida, the City of Sanford installed num-
erous and extended improvements at a cost of several million dollars. To finance these projects
the City issued improvement bonds in the sum of $29587,000.00, payable primarily from collect -
Lone from "Special Assessments" made against abutting property. It was expected that collection
from these assessments would be sufficient for that purpose.
These improvements consisted of approximately 50 miles of street paving and approximately
5 miles of bulkhead and fill. Assessments levied against the unimproved property were far in
excess of the value thereof, thereby making oolleotious impossible and resulting in wholesale
abandonment. In addition to these "Special Assessment" bonds, general term bonds were issued in
the sum of $5,038,000.00, to be paid from general taxation. The bulk of these bonds were dis-
posed of during the "boom" period as a result of propaganda circulated by real estate developer
These developers who were instrumental in fostering the "boom" have since left, leaving the
burden on the shoulders of the original property owners.
The present alleged bonded debt of the City is $8 ,242 000.009 with an annual interest re-
quirement of close to 475,000.00. It is the desire of the 5ity and its administration to pay
to the fullest extent of its ability. The question is, how much can the City pay. The following
tabulated statement gives a review of the amounts levied and collected through taxation during
the past ten years :
TABLE OF TAX ASSESSMENTS & COLLECTIONS
ear Asa Valuation Millage Taxes Ass d T as Col- Popula t
1919 $40049s .00 15 $51.073.338 $45ted 1 89.2
1920 ,299.912.47 17 73.0 9•r+3 $69,575.87 95.2 5558
1921 4,92j,5 7.00 17 83,72.10 76,980.42 92
1922 6,154,249.00 is 1109780.20 106,521.29 96.1
1923 6,758 922.00 15 1212662.67 117,934.38 97
1924 8,189,294.00 18 147,407.68 146,899.42 95.6 11,612
192 11,226,948.10 1B 202,05 .06 1939589.53 95
1922 19,450,748.00 15 291,7 6.02 2329586.11 50 13,461
1927 21,727,599.00 25 543,049.60 320,137.47 59
1928 15,880,113.19 20 319,215.40 158,129.65 59 99626
on
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CITY COMMISSION, SANFORD, FLORIDA, Ad jcurned Session Feb. 211930
An analysis of this statement will show that leers than #2,000,000.00 was collected in
taxes during the beat ten years in the history, of :Sanford, including the "boom ", or an average
of #►200,000.00 per year, which is less than 1/2 the amount necessary to meet our interest re-
quirements alone. It will also be noted from the percentage column that the people ddpay their
taxes as long as they are able.
The results from the collapse of the "boom ", storms and Mediterranean fruit fly embargoes
are best illustrated by the following figures :
Total deposits of Banks operating in the City in
1927 amounted to $4087,000.00
In 1930 1,4509000.00
The three banks operating in the City in 1927 have all failed.
Telephones in operation in 1925 were 1828
Telephones in operation at present 1426
A further examination of the tabulated statement giving tax collections over the past ten
years will reveal that the population has shrunk from 13,461 in 1926, to 9,626 in 1928 and
judging from the decrease in utility services, has shrunk considerably more since that date.
In addition to the above tax burden, the City of Sanford bears approximately 53% of the
State and County taxes. The County of Seminole has outstanding general bonds in the amount of
$2,429,()00.00 and there are school bonds outstanding on District No. 1 ( which is the City of
Sanford ) in the sum of $582,000.00. The alleged bonded debt of the City of Sanford is,-,as fol-
lows :
City bonds proper $8,242,00
0.00
Approximately 539 County bonds 1,287,319.00
School bonds 1 582,000.00
Grand total $10,1110,70.00
The City in its negotiations with the bond brokers made an effort to have the representa-
tives of the bond owners join with the City in having a survey of the City made with a view of
determining,. as near as may be, the ability of the City to pay. The bond holders committee re-
fused to entertain this suggestion.
Demands for payments were made that were impossible.
Suits have been instituted in the Federal Court.
The City Commission feels that the real interest of the bond holderris to realize as much
as lie can on his investment, rather than by expensive and prolonged litigation endeavor to es-
tablish a municipal bond market. The Commission feels further that Sanford's financial situation
as well as the financial situation of each Florida City, must be worked out on its own merits.
The overhead charges of the City are so great and so burdensome - values of property are
so deflated and are continuing toward lower levels daily - all this together with the litigation
involving the City in its financial affairs is bringing the morale of the people to a very low
ebb and the population is being depleted daily.
The City through its Commission stands ready to do what it can but the impossible cannot
be done. If all bond holders could see fit to adjust themselves to the desperate situation and
meet the City half way in an effort to refund all bonds in such a manner as that the ability of
the City and its people could bear the burden, then and only then can some definite progress be
made.
The meeting then adjourned
Attest:-
City Olerko
Most respectfully submitted
CITY COMMISSION OF THE CITY OF
SANFORD, FLORIDA.
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