62-IRESOLUTION NO. 62-~
A RESOLUTION AUTHORIZING THE CONSTRUCTION
AND ACQUISITION OF ADDITIONS, EXTENSIONS
AND IMPROVEMENTS TO THE SEWER SYSTEM OF
THE COMBINED WATER AND SEWER SYSTEM OF THE
CITY OF BOYNTON BEACH, FLORIDA, AND AU-
THORIZING THE ISSUANCE OF $1,650,000 WATER
AND SEWER REVENIYE BONDS, ISSUE OF 1961,
SERIES B.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
BOYNTON BEACH, FLORIDA:
ARTICLE 1
STATUTORY AUTHORITY, FINDINGS AND DEFINITIONS
Section 1.01. AUTHORITY OF THIS RESOLUTION. This resolu-
tion is adopted pursuant to the provisions of Chapter 184, Florida
Statutes, and other applicable provisions of law.
Section 1.02. FINDINGS. It is hereby ascertained,
determined and declared:
(A) That the City of Boynton Beach, Florida (hereinafter
called "City"), now owns, operates and maintains a system for the
supply and distribution of water to the inhabitants of said City,
and others, including the inhabitants of the Town of Ocean Ridge
pursuant to and under the terms and conditions provided in Chapter
15088, Laws of Florida, Acts of 1931.
(B) That the Town of Ocean Ridge has heretofore granted
to the City of Boynton Beach a franchise for the construction of
certain water mains, fire hydrants and distribution facilities in
said Town, and for the supply of water to the inhabitants of said
Town for a period of thirty years; that under the terms of said
franchise said water mains, fire hydrants and distribution facilities
constructed by the City in the Town of Ocean Ridge are owned by and
are the property of the City, and a part of its Water System; that
under the terms of said franchise the water mains and distribution
facilities existing in the Town of Ocean Ridge which were then served
by the Water System of the City, pursuant to said Chapter 15088,
Laws of Florida, Acts of 1931, continued to remain the property
of said Town, but were continued to be and are now supplied with water
by the Water System of Boynton Beach under the conditions provided
by said statute and said franchise.
(C) That the City derives revenues from rates, fees
and other charges made and collected for the services and facilities
of said Water System; that said revenues are not pledged or encumbered
in any manner except for the payment of the principal of and interest
on the outstanding bonds of an original issue of $228,000 Water Re-
venue Bonds heretofore issued by the City of Boynton Beach under date
of December 1, 1950 (hereinafter called "Outstanding 1950 Bonds"), for
the payment of certain non-interest bearing refunding agreements hereto-
fore entered into by the City with various contractors (hereinafter
called "Outstanding Contractors' Refunding Agreements") which Out-
standing Contractors' Refunding Agreements are payable from the
revenues of a portion of said Water System, and for the payment of the
outstanding bonds of an issue of $1,370,000 Water Revenue Bonds, Series
1960, dated December 1, 1960, (hereinafter called "Outstanding 1960
Bonds" ).
(D) That the City of Boynton Beach, Florida, now owns,
operates and maintains a municipal sewer system for the collection,
treatment and disposal of sewage in said City.
(E) That the City derives revenues from rates, fees,
rentals and other charges made and collected for the services and
facilities of said Sewer System; that said revenues are not pledged
or encumbered in any manner except for the payment of the principal
of and interest on the outstanding bonds of an authorized issue of
$400,000 Sewer Revenue Bonds, dated September 1, 1958, and maturing in
the years 1962 to 1995, inclusive, and the payment of the principal of
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and interest on a Certificate of Indebtedness in the principal
amount of $40,660.00, dated August 31, 1961, and maturing in five
(5) equal proportionate amounts on September 1 of each of the years
1962 to 1966, inclusive (all hereinafter collectively referred to as
"Outstanding Sewer System Obligations"), all of which Outstanding
Sewer System Obligations will be refunded or refinanced at or prior
to the issuance of the Bonds authorized by this resolution.
(F) That the City has heretofore, by resolution duly
adopted combined said Water System and said Sewer System into one
consolidated Water and Sewer System.
(G) That the revenues derived and to be derived from
the operation of said combined Water and Sewer System are not pledged
or encumbered in any manner except as stated in Subsection 1.02 (C)
above, and except for the payment of the bonds of an issue of
$1,750,000 Water and Sewer Revenue Bonds, Issue of 1961, Series A,
dated December 1, 1961 (hereinafter referred to as "Outstanding 1961
Series A Bonds").
(H) 'That the lien of the holders of the Water and Sewer
Revenue Bonds, Issue of 1961, Series B, to be issued pursuant to this
resolution (hereinafter referred to as "Bonds") on the revenues of
the Water System of the combined Water and Sewer System will be
junior and subordinate to the lien thereon of the holders of the
Outstanding 1950 Bonds and the Outstanding Contractors' Refunding
Agreements, and the lien of the holders of the Bonds to be issued
pursuant to this resolution, on the revenues of the combined Water
and Sewer System will be junior and subordinate to the lien thereon
of the holders of the Outstanding 1960 Bonds and the Outstanding
1961 Series A Bonds.
(I) That pursuant to Section 167.431, Florida Statutes
and other applicable provisions of law, the City of Boynton Beach,
Florida, did under date of the l~th day of July, 1946, enact an
ordinance, thereafter amended by an ordinance adopted on the
30th day of October, 1961, levying a tax (hereinafter called
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called ~"Uti~ities Services Taxes") on each and every purchase of elec-
tricity, bottled gas and metered gas (natural or manufactured), and
local telephone service within the corporate limits of the City, in the
amount of the percentages provided therein of the payments received by
the seller of such utilities services from the purchaser for the pur-
chase of such utilities services; that such Utilities Services Taxes
are not pledged or encumbered in any manner except for the payment of
the principal of and interest on the outstanding certificates of an
authorized issue of $100,000 Certificates of Indebtedness, dated
September 1, 1955, and maturing in the years 1962 to 1965, inclusive,
and the payment of the principal of and interest on a Promissory Note
in the principal amount of $13,135,00, dated October 2, 1961, and pay-
able on or prior to five years from said date; that it is deemed
necessary and advisable to pledge said Utilities Services Taxes to the
payment of the principal of and interest on the Bonds to be issued
pursuant to this resolution.
(J) That it is the intention of the City to levy Special
Assessments against the lands and real estate to be especially bene-
fited by the improvements to be constructed with the proceeds of the
Bonds to be issued pursuant to this resolution and it is deemed neces-
sary and advisable to pledge the proceeds of such Special Assessments,
to the extent that the same may be lawfully levied and collected, to
the payment of the principal of and interest on the Bonds to be issued
pursuant to this resolution.
(K) That it is necessary and essential to construct and
acquire additions, extensions and improvements to the Sewer System of
the combined Water and Sewer System, as provided herein, in order to
preserve and protect the public health, safety and welfare of the in-
habitants of the City.
(L) That the revenues estimated to be derived in each year
hereafter from the operation of the Cityts combined Water and Sewer
System will be sufficient to pay all costs of operation and mainten-
ance of said Water and Sewer System during such year, the principal of
and interest on the Outstanding 1961 Series A Bonds maturing and be-
coming due during such year, the principal of and interest on the Out-
standing 1960 Bonds maturing and becoming due during such year, the
principal of and interest on the Outstanding 1950 Bonds maturing and
becoming due during such year, the principal payments required to be
made on said Outstanding Contractors' Refunding Agreements during such
year, and together with said Utilities Services Taxes after payment of
the Outstanding Certificates of Indebtedness and Outstanding Promissory
Note, and said proceeds of Special Assessments, the principal of and
interest on the Water and Sewer Revenue Bonds, Issue of 1961, Series B,
to be issued pursuant to this resolution maturing and becoming due in
such year and all sinking fund, reserve or other payments provided for
in this resolution.
(M) That the principal of and interest on the Water and
Sewer Revenue Bonds, Issue of 1961, Series B, to be issued pursuant to
this resolution and all sinking fund, reserve and other payments pro-
vided for in this resolution shall be paid solely from the revenues
derived by the City from the operation of its Water and Sewer System,
and said Utilities Services Taxes and said proceeds of Special Assess-
ments pledged therefor by this resolution, and it will never be neces-
sary or authorized to levy taxes on any real property in the City to
pay the principal of and interest on the Water and Sewer Revenue Bonds,
Issue of 1961, Series B, to be issued pursuant to this resolution or to
make any of the sinking fund, reserve or other payments provided for in
this resolution and that the Water and Sewer Revenue Bonds, Issue of
1961, Series B, to be issued pursuant to this resolution shall not con-
stitute a lien upon any of the properties of said Water and Sewer System
or upon any other property whatsoever of the City, except said revenues,
said Utilities Services Taxes and said proceeds of Special Assessments.
Section 1.03 AUTHORIZATION OF CONSTRUCTION AND ACQUISI-
TION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO SEWER SYSTEM OF
COMBINED WATER AND SEWER SYSTEM. That there is hereby authorized
the construction and acquisition of additions, extensions and improve-
ments to the Sewer System of the City's combined Water and Sewer
System, consisting of, but not limited to, the construction and
installation of lateral sewers and small mains, together with other
facilities, extensions, improvements and additions, necessary, in-
cidental or appurtenant thereto, including the acquisition of lands
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and interest therein necessary or convenient therefor, and all
substantially in accordance with the plans and specifications there-
for prepared or to be prepared by Russell & Axon, Consulting Engineers,
of St. Louis, Missouri, and approved or to be approved by this Council,
at an estimated cost of not exceeding $1,650,000. Such cost shall
be deemed to include the cost of the construction and acquisition of
said improvements, including the acquisition of any lands or interest
therein or any other properties deemed necessary or convenient there-
for; engineering, legal, and financing expenses; ekpenses for estimates
of costs and of revenues; expenses for plans, specifications and sur-
veys; the fees of fiscal agents, financial advisors or consultants,
if any~ administrative expenses relating solely to such construction
and acquisition; interest upon the Water and Sewer Revenue Bonds,
Issue of 1961, Series B, issued pursuant to this resolution prior to,
during and for six months after the completion of the construction
of said additions, extensions and improvements to the Sewer System
of said Water and Sewer System; such other expenses as may be
necessary or incidental to the financing authorized by this resolution,
and the construction and acquisition of the improvements, extensions
and additions authorized by this resolution and the placing of same
in operation.
Section 1.04. FINANCING ESTIMATES. It is hereby found
and determined that the estimated cost, as above defined, of the
construction and acquisition of said additions, extensions and improve-
ments to the Sewer System of said Water and Sewer System is $1,650,000;
that the Gross Revenues, as hereinafter defined, of such Water and
Sewer System, are estimated to average $5oo, ooo.~ annually in the
years 1963 to 2000, inclusive; that the annual Operating Expenses,
as hereinafter defined, of such Water and Sewer System, are estimated
to average $ ~a,o~o.~ annually in the years 1963 to 2000, inclusive,
and that the average annual Net Revenues, as hereinafter defined,
of such Water and Sewer System are estimated to average $
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annually in the years 1963 to 2000, inclusive; that the average
annual amount of Utilities Services Taxes to be collected by the
City are estimated to average $~Oo. ooo.~__~ annually in the years
1963 to 2000, inclusive; that the average annual amount of proceeds
of Special Assessments to be collected by the City are estimated to
average $~.oo~.~ annually in the years 1963 to 2000, inclusive,
and that the total annual average amount of said Net Revenues, Utili-
ties Services Taxes and proceeds of Special Assessments are estimated
to average $~,ooo,~ annually in the years 1963 to 2000.
Section 1.05. RESOLUTION TO CONSTITUTE CONTRACT. In con-
sideration of the acceptance of the Bonds authorized to be issued
hereunder by those who shall hold the same from time to time, this
resolution shall be deemed to be and shall constitute a contract be-
tween the City of Boynton Beach, Florida, and such Bondholders, 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 Bonds and the coupons attached
thereto, all of which shall be of equal rank and without preference,
priority or distinction of any of the Bonds or coupons over any other
thereof except as expressly provided therein or herein.
Section 1.05. DEFINITIONS. The following terms shall have
the following meanings in this resolution unless the text otherwise
expressly requires:
(A) "City" shall mean the City of Boynton Beach, Florida.
(B) "Town" shall mean the Town of Ocean Ridge, Florida.
(C) "Act" shall mean Chapter 18~, Florida Statutes, and
other applicable provisions of law.
(D) "Bonds" shall mean the $1,650,000 Water and Sewer
Revenue Bonds, Issue of 1961, Series B, authorized to be issued pur-
suant to this resolution,and the interest coupons attached to said
Bonds.
(E) "Holder of Bonds" or "Bondholder", or any similar
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term, shall mean any person who shall be the bearer or owner of any
Bond or Bonds registered to bearer or not registered, or the regis-
tered owner of any outstanding Bond or Bonds which shall be at the
time registered other than to bearer, or of any coupons representing
interest accrued or to accrue on said Bonds.
(F) "Water and Sewer System" shall mean the complete
Water and Sewer System presently owned, operated and maintained by
the City, together with any and ail improvements, extensions and
additions thereto hereafter constructed or acquired, either from the
proceeds of the Bonds or from any other source, together with all
lands or interests therein, plants, buildings, machinery, franchises,
pipes, fixtures, equipment, and all property, real or personal,
tangible or intangible, now or hereafter owned or used by said City
in connection therewith; provided however that the water distribution
facilities existing in the Town of Ocean Ridge prior to the granting
of the franchise to said City by the Town, shall, pursuant to Chapter
15088, Laws of Florida, Acts of 1931, and pursuant to said franchise
granted by the Town to the City, remain the property of the Town;
and, provided further, that all revenues derived by the City from the
supplying of water to inhabitants or users through said existing water
distribution facilities of the Town shall be deemed revenues of said
Water and Sewer System as fully and to the same extent as all other
revenues of said Water and Sewer System.
(G) "Facilities" shall mean all the facilities of said
Water and Sewer System, and all parts thereof, existing at the time
of the adoption of this resolution, and also any facilities which may
hereafter be added to said Water and Sewer System, or any part thereof,
by any additions, betterments, extensions, improvements thereto, or
property of any kind or nature, real or personal, tangible or intangible,
hereafter constructed or acquired in connection with said Water and
Sewer System.
(H) "Gross Revenues" or "Revenues shall mean all fees,
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rentals or other charges or other income received by the City, or
accrued to the City or to any Board or Agency of the City in control
of the management and operation of said Water and Sewer System,
and all parts thereof, from the operation of said Water and Sewer
System, all as calculated in accordance with sound accounting prac-
tice, and shall be deemed to include all fees, rentals or other
charges or other income received by the City from the supplying of
water to inhabitants or users located in the Town through existing
water distribution facilities in said Town which remain the property
of the Town.
(I) P ration Expenses" shall mean the current expenses,
"0 e
paid or accrued, of operation, maintenance and repair of the Water
and Sewer System and its facilities and shall include, without
limiting the generality of the foregoing, administrative expenses
relating solely to said Water and Sewer System, insurance premiums,
an operating reserve in the amount certified to by the Consulting
Engineers as the reasonable amount necessary for one month's
cost of operation, maintenance and ordinary current repairs of
said Water and Sewer System, and such other reasonable current
expenses as shall be in accordance with sound accounting practice.
"Operating Expenses" shall not be deemed to include the cost of
the maintenance and repair of the water distribution facilities
existing in the Town prior to the granting of the franchise to
the City by the Town, which said Town is obligated to pay under
said Chapter 15088, Laws of Florida, Acts of 1931, and said
franchise.
(J) "Net Revenues" shall mean the gross revenues,
as defined in subsection (H) above, remaining after deduction
only of the costs of Operating Expenses, as defined in subsection
(I) above.
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(K) "Consulting Engineers" shall mean Russell & Axon,
Engineers of St. Louis, Missouri, or such other firm of qualified
nationally
and/recognized engineers as may hereafter be employed by the City.
(L) "Franchise" shall mean the franchise granted to said
City by said Town referred to in Section 1.01 (B) hereof.
(M) "Utilities Services Taxes" shall mean the Utilities
Services Taxes levied and collected by said City pursuant to Section
167.~31, Florida Statutes, and said ordinance enacted on July 12,
1946, as amended by said ordinance enacted on October 30, 1961.
(N) "Special Assessments" shall mean the assessments
levied and collected against the lands and real estate especially
benefited or to be especially benefited by the construction or
acquisition of the additions, extensions and improvements to the
Sewer System of the Water and Sewer System, together with all penal-
ties, interest and other moneys derived from or in connection with
the levying and collection of said Special Assessments.
(0) Words importing singular number shall include the
plural number in each case and vice versa, and words importing
persons shall include firms and corporations.
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ARTICLE II
AUTHORIZATION, TERMS, EX~CUTION
AND REG/STRATiON OF BONDS
Section 2.01. AUTHORIZATION OF BONDS. Subject and pursuant
to the provisions of this resolution, obligations of the City to be
kno~ as "Water and Sewer Revenue Bonds ISSUe of 9ol, Series
are hereby authorized to be issued in the aggregate Principal amount
of not exceeding One Million Six HUndred Fifty Thousand Dollars
($1,650,000), for the purpose of financing the cost of the constr~ction
and acquisition of the extensions, additions and improvements to the
Sewer System of the combined Water and Sewer System of the City-as
Provided in Section 1.03 hereof.
Section 2.02. DESCRIPTION OF BONDS. The Bonds shall be
dated December 1, 1961~ shall be in the denomination of $1,000 each~
shall be numbered from 1 to 1,650, both inclusive$ shall bear interest
at a rate or rates not exceed.lng the legal rate, payable semi-annually
on June 1 and December 1 of each year, and shall mature on June t
of each year as follows:
420,000 in each of the years 1964 to 19Z3, both inclusive$ and
$1,450,000 in the year 2000.
The Bonds maturing in the years 196~ to 1972, both inclusive,
shall not be redeemable prior to maturity.
The Bonds maturing in the years 19Z3 and 2000 shall be re-
deemable Prior to maturity, at the option of the City, as a whole from
any legally available funds, on any interest payment date on or after
June 1, 1972, at the price of par plus accrued interest plus the
following premiums, expressed in percentages of the Par value thereof,
if redeemed in the following years:
Year
19Z2 or 19Z3
1976 or 1977
19Z8 or 1979
1980 or 1981
Premium Year
------ Premium
~ 1/2¢~'~'~ 1982 2
4 1983 l
3 . ¢ 1985 or
2
thereafter
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The Bonds maturing in the year 2000 shall also be redeemable
in part by lot, at the option of the City, but only from the pledged
revenues, on any interest payment date on or after June 1, 1966, at
the price of par plus accrued interest plus the following premiums,
expressed in percentages of the par value thereof, if redeemed in
the following years:
--Years (inclusive)
1966 to 1970
1971 to 1975
1976 and thereafter
Premium
None
Notice of any such redemption shall be published at least
once at least thirty (30) days prior to the date fixed for redemption,
in a financial paper published in the City of New York, New York.
Interest shall cease on any of said Bonds duly called for prior re-
demption if payment of the redemption price has been duly made or
provided for.
Said Bonds shall be issued in coupon form, shall be payable
with respect to both principal and interest at such place or places
either within or without the State of Florida, as shall hereafter be
designated by resolution of the City Council prior to the sale of said
Bonds, in lawful money of the United States of America, and shall
bear interest from their date, payable in accordance with and upon
surrender of the appurtenant interest coupons as they severally mature.
Section 2.03. (A) EXECUTION 0F BONDS AND COUPONS. Said
Bonds shall be executed in the name of the City by the Mayor, and
its corporate seal, or a facsimile thereof, shall be affixed thereto
or impressed, imprinted, lithographed or reproduced thereon and
attested by the City Clerk. The facsimile signatures of said Mayor
and City Clerk may be imprinted, lithographed or reproduced on said
Bonds, provided that at least one of said officers shall manually
apply his signature on said Bonds. In case one or more of the officers
who shall have signed or sealed any of the Bonds shall cease to be such
officer of the City befor$ the Bonds so signed and sealed shall have
been actually sold and delivered, such Bonds may nevertheless be
sold and delivered as herein provided and may be issued as if the
person who signed or sealed such Bonds had not ceased to hold such
office. Any Bond may be signed and sealed on behalf of the City by
such person as at the actual time of the execution of such Bond shall
hold the proper office in the City, although at the date of such Bonds
such person may not have held such office or may not have been so
authorized.
The coupons to be attached to the Bonds and the Validation
Legend shall be authenticated with the facsimile signatures of the
present or any future Mayor and City Clerk of said City, and the City
may adopt and use for that purpose the facsimile signature of any
person who shall have been such Mayor or City Clerk at any time on
or after the date of the Bonds, notwithstanding that he may have
ceased to be such Mayor or City Clerk at the time when such Bonds shall
be actually sold and delivered.
(B) NEGOTIABILITY AND REGISTRATION. The Bonds shall be,
and have all the qualities and incidents o~ negotiable instruments
under the law merchant and the Negotiable Instruments Law of the
State of Florida, and each successive holder, in accepting any of said
Bonds or the coupons appertaining thereto, shall be conclusively deemed
to have agreed that such Bonds shall be, and have all of the qualities
and incidents of negotiable instruments under the law merchant and
the Negotiable Instruments Law of the State of Florida, and each
successive holder shall be conclusively deemed to have agreed that
said Bonds shall be incontestable in the hands of a bona fide holder
for value in the manner provided hereinafter in the form of said
Bonds.
The Bonds may be registered at the option of the holder
as to principal only, or as to both principal and interest, at the
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office of the City Clerk of the City, such registration to be noted
on the back of said Bonds in the space provided therefor. After such
registration as to principal only, or both principal and interest,
no transfer of the Bonds shall be valid unless made at said office
by the registered owner, or by his duly authorized agent or representa-
tive and similarly noted on the Bonds, but the Bonds may be discharged
from registration by being in like manner transferred to bearer and
thereupon transferability by delivery shall be restored. At the
option of the holder the Bonds may thereafter again from time to time
be registered or transferred to bearer as before. Such registration
as to principal only shall not affect the negotiability of the coupons
which shall continue to pass by delivery.
Section 2.04. BONDS MUTILATED, DESTROYED, STOLEN OR LOST.
In case any Bond shall become mutilated or be destroyed, stolen or
lost, the City may in its discretion issue and deliver a new Bond
with all unmatured coupons, if any, so mutilated, destroyed, stolen
or lost in exchange and substitution for such mutilated Bond, upon
surrender and cancellation of such mutilated Bond and attached coupons,
if any, or in lieu of and substitution for the Bond and attached
coupons, if any, destroyed, stolen or lost, and upon the holder
furnishing the City proof of his ownership thereof and satisfactory
indemnity and complying with such other reasonable regulations and
conditions as the City may prescribe and paying such expenses as the
City may incur. Ail Bonds and coupons so surrendered shall be cancelled
by the City Clerk and held for the account of the City. If any such
Bond or coupon shall have matured or be about to mature, instead of
issuing a substituted Bond or coupon, the City may pay the same, upon
being indemnified as aforesaid, and if such Bond or coupon be lost,
stolen or destroyed, without surrender thereof.
Any such duplicate Bonds and coupons issued pursuant to
this section shall constitute original, additional contractual obliga-
tions on the part of the City, whether or not the lost, stolen or
destroyed Bonds or coupons be at any time found by anyone, and such
duplicate Bonds and coupons shall be entitled to equal and proportion-
ate benefits and rights as to lien on and source and security for
pa~ent from the revenues of the Water and Sewer System, said Utilities
Services Taxes and said proceeds of Special Assessments pledged herein
with all other Bonds and coupons issued hereunder.
Section 2.05. F0~ OF BONDS AND COUPONS. The text of the
Bonds and coupons shall be of substantially the following tenor,
with such omissions, insertions and variations as may be necessary
and desirable and authorized or permitted by this resolution or any
subsequent ordinance or resolution adopted prior to the issuance
thereof:
Moo
$1,000
UNITED STATES 0F ~v~RICA
STATE OF FLORIDA
COUNTY OF PA~ BEACH
CITY OF BOYNTON BEACH
WATER AND SE~R REVENUE BOND, ISSUE OF 1961, SERIES B
KNOW ALL MEN BY THESE PRESENTS that the City of Boynton Beach,
Florida, for value received, hereby promises to pay to the bearer,
or if this Bond be registered, to the registered holder as herein
provided, on the first day of June, 19 , from the revenues and other
funds hereinafter mentioned, the principal sum of
OHE TH0~S^ND DOLLARS ($1,000)
with interest thereon at the rate of per
centum ( ~) per annum, payable semi-annually on the 1st day of
June and the 1st day of December in each year upon the presentation
and surrender of the annexed coupons as they severally fall due. Both
principal of and interest on this Bond are payable in lawful money
of the United States of America at
or at the option of the holder, at
This Bond is one of an authorized issue of Bonds in the
aggregate principal amount of $1,650,000 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 additions,
extensions and improvements to the Sewer System of the combined Water
and Se?~er System of the City of Boynton Beach, under the authority of
and in full compliance with the Constitution and Statutes of the State
of Florida, including particularly Chapter 184, Florida Statutes, and
other applicable provisions of law, and a resolution duly adopted by
the City Council of the City on the day of , 1962,
and is subject to all the terms and conditions of said resolution.
The Bonds, and the coupons appertaining thereto, are
payable solely from and secured by a lien upon and pledge of the net
revenues derived from the operation of the combined ~ater and Sewer
System of the City of Boynton Beach and are additionally secured by
a lien on and pledge of utilities services taxes collected by the
City pursuant to Section 167.431, Florida Statutes, which lien on and
pledge of such utilities services taxes is subject to being released
and extinguished upon the happening of certain events, and from the
proceeds of special assessments, to the extent that the same may be
lawfully levied, against the lands and real estate to be especially
benefited by the construction of the additions, extensions and improve-
ments, all in the manner provided in the resolution authorizing the
issue of Bonds of which this Bond is one.
The Bonds maturing in the years 1973 and 2000 shall be re-
deemable prior to maturity, at the option of the City, as a whole from
any legally available funds, on any interest payment date on or after
June l, 1972, at the price of par plus accrued interest plus the
following premiums, expressed in percentages of the par value thereof,
if redeemed in the following years:
Year Premium
1972 or 1973 4 1/2%
1974 or 1975 4 %
1976 or 1977 3 1/2%
1978 or 1979 3
1980 or 1981 2 1/2%
Year Premium
1982 2 %
1983 1 1/2~
198~ 1
1985 or
thereafter 1/2%
The Bonds maturing in the year 2000 shall also be redeemable
in part by lot, at the option of the City, but only from the pledged
revenues, on any interest payment date on or after June l, 1966, at
the price of par plus accrued interest plus the following premiums,
expressed in percentages of the par value thereof, if redeemed in the
following years:
Years (inclusive)
1966 to 1970
1971 to 1975
1976 and thereafter
Premium
None
A notice of any such redemption shall be published at least once, at
least thirty (30) days prior to the redemption date, in a financial
paper published in the City of New York, New York, and interest will
cease on any of said Bonds duly called for prior redemption if payment
of the redemption price has been duly made or provided for.
The lien of the holders of the Bonds of the issue of which
this Bond is one on the revenues derived from the operation of the
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Water System of the City's combined Water and Sewer System is junior,
subordinate and inferior in all respects as to lien on and source and
security for payment from such revenues to the lien thereon of the
holders of the outstanding bonds of an issue of $228,000 Water Revenue
Bonds, dated December 1, 1950, heretofore issued by the City, and to
the lien on a portion of such water revenues of certain non-interest
bearing refunding agreements entered into by the City with various
contractors (hereinafter called "Outstanding Contractorst Refunding
Agreements"), and the lien of the holders of the Bonds of the issue
of which this Bond is one on the revenues derived from the operation
of the City's combined Water and Sewer System is junior, subordinate
and inferior in all respects as to lien on and source and security for
payment from such revenues to the lien thereon of the holders of the
outstanding bonds of an issue of $1,370,000 Water Revenue Bonds, Series
1960, dated December 1, 1960 and the outstanding bonds of an issue of
$1,750,000 Water and Sewer Revenue Bonds, Issue of 1961, Series A,
dated December 1, 1961, and any obligations hereafter issued on a parity
with said Water Revenue Bonds, Series 1960 and said Water and Sewer
Revenue Bonds, Issue of 1961, Series A.
The lien of the holders of the Bonds of the issue of which
this Bond is one on the utilities services taxes collected by the City
is Junior, subordinate and inferior as to lien on and source and security
for payment from such utilities services taxes to the lien thereon of
the holders of the outstanding certificates of an issue of $100,000
Certificates of Indebtedness, dated September 1, 1955 and an outstanding
Promissory Note, in the principal amount of $13,135.00, dated October
2, 1961.
This Bond does not constitute an indebtedness of the City
of Boynton Beach within the meaning of any constitutional, statutory
or charter provision or limitation, and it is expressly agreed by
the holder of this Bond 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 said City for the payment
of the principal of and interest on this Bond or the making of any
-18-
sinking fund, reserve or other payments provided for in the resolution
authorizing the issue of Bonds of which this Bond is one.
It is further agreed between the City of Boynton Beach
and the holder of this Bond that this Bond and the obligation evidenced
thereby shall not constitute a lien upon the City's Water and Sewer
System, or any part thereof, or on any other property of or in the
City of Boynton Beach, but shall constitute a lien only on the net
revenues derived from the operation of said Water and Sewer System,
said utilities services taxes and said proceeds of special assessments
in the manner provided in said resolution.
The City in said resolution has covenanted and agreed with
the holders of the Bonds of the issue of which this Bond is one to
fix, e!stablish, maintain and collect rates, fees, rentals or other
charges for the services and facilities of the City's Water and Sewer
System, and to revise the s~e from time to time whenever necessary,
as will a!~ays provide revenues in each year sufficient to pay all
costs of operation and maintenance of said Water and Sewer System in
such year, one hundred twenty-five per centum of the maximum debt
service requirement, as defined in said resolution, for the Outstanding
Water and Sewer Revenue Bonds, Issue of 1961, Series A, dated December
!, 1961, the Outstanding ~ater Revenue Bonds, Series 1960, dated
December 1, 1960, the Outstanding Water Revenue Bonds, dated December 1,
1950, and the Outstanding Contractors' Refunding Agreements in any suc-
ceeding year, and, together with said utilities services t~es and
proceeds of special assessments, one hundred twenty-five per centum
of the maximum debt service requirement for the Bonds of the issue of
which this Bond is one, the Outstanding Certificates of Indebtedness
and the Outstanding Promissory Note in any succeeding year, and that
such rates, fees, rentals or other charges shall not be reduced so as
to be insufficient to provide adequate revenues for such purposes; and
said City has entered into certain further covenants with the holders
of the Bonds of the issue of which this Bond is one for the terms of
which reference is made to said resolution.
It is hereby certified and recited that all acts, conditions
and things required to exist, to happen and to be performed precedent
-19-
to and in the issuance of this Bond, 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 applicable thereto, and
that the issuance of this Bond, and of the issue of Bonds of which
this Bond is one, does not violate any constitutional, statutory or
charter limitations or provisions.
This Bond, 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
Bond, or of the coupons appertaining thereto, shall be conclusively
deemed by his acceptance thereof to have agreed that this Bond 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 Bond, 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 Bond, unless registered as herein provided,
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 Bond, unless registered
as herein provided, or of the interest coupons hereunto appertaining,
regardless of the manner in which he shall have acquired possession
hereof, 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 o~'mership
-20-
enforceable against his transferror; every prior taker or o~,a~er of
this Bond, unless registered as herein provided, and of the annexed
interest coupons, r.~aives 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 Boynton Beach, Florida, may treat the
bearer of this Bond, unless registered as herein provided, or of the
interest coupons hereunto appertaining, as the absolute ovmer hereof
for all purposes without being affected by any notice to the contrary.
This Bond may be registered as to principal only, or as
to both principal and interest, in accordance with the provisions
endorsed hereon.
IN WITNESS '~qEREOF, the City of Boynton Beach, Florida,
has issued this Bond and has caused the same to be signed by the
manual or facsimile signature of its Mayor, and the corporate seal
of said City or a facsimile thereof to be affixed, impressed, imprint-
ed, lithographed or reproduced hereon and attested by the manual
or facsimile signature of its City Clerk, and has caused the interest
coupons hereto attached to be executed with the facsimile signatures
of the said Mayor and City Clerk, all as of the 1st day of December,
1961.
CITY OF BOYNTON BEACH, FLORIDA
(Seal)
Attest:
C±ty"'~lerk
Mayor
No. FORM OF COUPON
On the 1st day of
Beach, Florida, will pay to the bearer at
19 ,
the City of Boynton
, or at the option of the holder, at
from the
revenues described in the Bond to which this coupon is attached, the
sum of follars ($
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 Bond, Issue of 1961, Series B, dated December
1, 1961, No. .
CITY OF BOYNTON BEACH, FLORIDA
City C15~
Mayor
(To be inserted in coupons maturing after callable date)
"Unless the Bond to which this coupon is attached shall
have been previously duly called for prior redemption and payment
thereof duly made or provided for."
VALIDATION CERTIFICATE
This Bond is one of a series of Bonds which ~.~ere validated
and confirmed by decree of the Circuit Court of the Fifteenth Judicial
Circuit of the State of Florida, in and for Palm Beach County, render-
ed on the day of , 1962.
City Cler~
Mayor
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PROVISION FOR REGISTRATION
This Bond may be registered in the name of the holder on
the books to be kept by the City Clerk as Registrar, or such other
Registrar as may hereafter be duly appointed, as to principal only,
such registration being noted hereon by such Registrar in the registra-
tion blank below, after which no transfer shall be valid unless made
on said books by the registered holder or attorney duly authorized and
similarly noted in the registration blank below, but it may be discharg-
ed from registration by being transferred to bearer, after which it
shall be transferable by delivery, but it may be again registered as
before. The registration of this Bond as to principal shall not
restrain the negotiability of the coupons by delivery merely, but the
coupons may be surrendered and the interest made payable only to
the registered holder, in which event the Registrar shall note in
the registration blank below that this Bond is registered as to interest
as well as principal, and thereafter the interest will be remitted by
mail to the registered holder. With the consent of the holder and
of the City of Boynton Beach, this Bond, when converted into a Bond
registered as to both principal and interest, may be reconverted into
a coupon Bond and again converted into a Bond registered as to both
principal and interest as hereinabove provided. Upon reconversion of
this Bond, when registered as to principal and interest into a coupon
Bond, coupons representing the interest to accrue upon the Bond to
date of maturity shall be attached hereto by the Registrar and the
Registrar shall note in the registration blank below whether the Bond
is registered as to principal only or payable to bearer.
DATE OF
REGISTRATION
IN WHOSE NAM~
REGISTERED
EXTENT OF
REGISTRATION
SIGNATURE
OF REGISTRAR
ARTICLE III
COVENANTS, SPECIAL FUNDS AND APPLICATION THEREOF
Section 3.01. BONDS NOT TO BE INDEBTEDNESS OF THE CITY.
Neither the Bonds nor coupons shall be or constitute an indebtedness
of t!~e City ~m~mn ti!~e meaning of ~:.ny constitutional, s~t~tor~, or
charter limitations of indebtedness, 'i~.t si-~ I1 be payable solely from
the net revenues derived from the operation of said Water and Sewer
Services
Syste~n and from said Utilities ~ Taxes and Special Assessments as herein
provided. No holder or holders of any Bonds issued hereunder, or of
any coupons appertaining thereto, shall ever have the right to compel
the exercise of the ad valorem taxing power of the City, or taxation
in any form of anN' real property therein to pay said Bonds or the
interest thereon.
Section 3.02. BONDS SECURED BY PLEDGE OF REVENUES AND
SPECIAL FUNDS.
(A) The payment of the debt service on all of the Bonds
issued hereunder shall be secured forthwith equally and ratably by'
a lien on and pledge of the net revenues derived from the operation
of the Water and Sewer System. The net revenues derived from said
Water and Sewer System, in an amount which, together with the Utilities
Services Taxes and proceeds of Special Assessments available therefor,
will be sufficient to pay the principal of and interest on the Bonds
herein authorized, and to make the payments into the reserve and
sinking funds and all other payments provided for in this resolution,
are hereby irrevocably pledged to the payment of the principal of
and interest on the Bonds authorized herein, and other payments pro-
vided for herein, as the same become due.
The lien of the holders of the Bonds issued pursuant to
this resolution on the revenues derived from the Water System of the
combined Water and Sewer System shall be junior and subordinate to
the lien on such water revenues of the holders of the Outstanding 1950
Bonds and the Outstanding Contractors' Refunding Agreements and the
lien of the holders of the Bonds issued pursuant to this resolution
on the revenues derived from the combined Water and Sewer System
shall be junior and subordinate to the lien on such Water and Sewer
Revenues of the holders of said Outstanding 1960 Bonds and said
Outstanding 1961 Series A ~ n_,.~ and any obligations hereafter issued
by the City on a parity with said Outstanding 1960 Bonds - ~
anm said
~ si-,~ rles A 3onds
Out°tan .... ne 1961 Se .
(B) The payment of the debt service on all of the Bonds
issued hereunder shall be further secured forthwith equally and
ratably by a valid lien on the proceeds of Utilities Services Taxes
collected pursuant to Section 167.~31, Florida Statutes, and said
ordinance adopted July 12, 19~6, as amended.
The lien of the holders of the Bonds issued pursuant to
this resolution on the proceeds of Utilities Services collected by
the City shall be junior, inferior and subordinate as to the lien
on such Utilities Services Taxes of the holders of outstanding
Certificates of Indebtedness, dated September 1, 1955, issued in the
principal amount of $100,000 pursuant to a resolution adopted by
the City Council on August 1, 1955 (hereinafter referred to as "1955
Resolution") and an outstanding Promissory Note, dated October 2,
1961, issued in the principal amount of $.13,135.00 pursuant to a
resolution adopted by the City Council on September 18 , 1961 (herein-
after referred to as "1961 Resolution").
The proceeds of Utilities Services Taxes received by the
City shall first be used, to the extent necessary, for the payment
of the principal of and interest on said outstanding Certificates of
Indebtedness, dated September 1, 1955, and said outstanding Promissory
Note, dated October 2, 1961, in the manner provided in said 1955
Resolution, and in the manner provided in said 1961 Resolution. There-
after, the balance of the proceeds of such Utilities Services Taxes
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received by the City in each month, after the delivery ~ any of the
Bonds authorized by this resolution, shall be deposited in a special
fund to be known as the "Utilities Tax Fund", which is hereby created.
Said fund shall constitute a trust fund for the purposes provided
therefor in this resolution, and shall be maintained with the Atlantic
National Bank of West Palm Beach, West Palm Beach, Florida, as Trustee,
and shall be administered pursuant to the Trust Agreement to be en-
tered into between the City and said Trustee pursuant to Section 3.04
(D) (3) hereof.
The City does further hereby covenant and agree that as long
as any of the principal of or interest on any of the Bonds issued pur-
suant to this resolution are outstanding and unpaid, or payment there-
of not duly provided for, it will not repeal said ordinance enacted on
July 12, 1946, as amended, levying such Utilities Services Taxes, and
will not amend or modify said ordinance, as amended, in any manner so
as to impair or adversely affect the power and obligation of the City
to le~y and collect said Utilities Services Taxes, or impair or adver-
sely affect in any manner the pledge of such Utilities Services Taxes
made herein, or the rights of holders of Bonds issued pursuant to this
resolution, and the City shall be unconditionally and irrevocably
obligated, as long as any of said Bonds, or interest thereon, are out-
standing and unpaid, to levy and collect said Utilities Services Taxes
at the rates now provided in said ordinance adopted July 12, 1946, as
amended, to the full extent necessary, together with the net revenues
of the Water and Sewer System and other pledged funds available there-
for, to pay the principal of and interest on said Bonds and to make
the other payments provided for herein as provided in this resolution.
This provisions shall not be construed to prevent reasonable revisions
of rates of such Utilities Services Taxes as long as the proceeds of
such Utilities Services Taxes collected by the City in each year
thereafter, together with the net revenues of the Water and Sewer
System and other pledged funds available therefor, will be sufficient
to pay one hundred twenty five per centum of the maximum debt service
-26-
requirement (as hereinafter defined) on the Bonds, the Outstanding
Certificates of Indebtedness and the Outstanding Promissory Note, and
one hundred per centum of the operating expenses of said Water and
Sewer System and all other payments provided for in this resolution
in such year; provided, however, that the City shall always be irrevoc-
ably and unconditionally obligated at all times to levy and collect
said Utilities Services Taxes at the maximum rates now provided in
Section 167.431, Florida Statutes, to the full extent necessary, to-
gether with said net revenues and other pledged funds available therefor,
to pay one hundred twenty five per centum of the maximum debt service
requirement on said Bonds, the Outstanding Certificates of Indebtedness
and the Outstanding Promissory Note, and one hundred per centum of the
operating expenses of said Water and Sewer System and all other payments
provided for in this resolution.
The City does further covenant that it has power under said
Section 167.431, Florida Statutes, to irrevocably pledge said Utilities
Services Taxes to the payment of the debt service on Bonds issued pur-
suant to this resolution, and that the pledge of said Utilities Services
Taxes~shall not be subject to repeal, modification or impairment by
any subsequent resolution, ordinance or other proceedings of the
governing body of the City of Boynton Beach or by any subsequent Act
of the Legislature of Florida.
The foregoing provisions notwithstanding, however, the lien
of the holders of the Bonds issued pursuant to this resolution on the
Utilities Services Taxes, and the pledge thereof to said Bonds, may
be released and extinguished in the manner provided in the following
paragraph.
At such time as the net revenues derived from the operation
of the combined Water and Sewer System shall have been equal, in each
of the five immediately preceding calendar years, to one hundred forty
per centum of the maximum debt service requirement for the Bonds, the
Outstanding 1950 Bonds, the Outstanding Contractors' Refunding Agree-
ments, the Outstanding 1960 Bonds and the Outstanding 1961 Series A
-27-
Bonds in any succeeding year, as certified by the sworn certificate
of an independent Certified Public Accountant, then and in that event
the lien of the holders of the Bonds issued pursuant to this resolu-
tion on the Utilities Services Taxes, and the pledge thereof to said
Bonds, shall thereafter be released and extinguished ninety days after
the publication by the City of a notice in a financial newspaper or
journal published in the City of New York, New York and in a newspaper
published in the City of Boynton Beach, to the effect that the above
described condition has been met and that the lien of the holders of
the Bonds issued pursuant to this resolution then outstanding, on the
Utilities Services Taxes, and the pledge thereof to said Bonds, will be
released and extinguished ninety days afterthe date of publication of
such notice.
The sworn certificate of such independent Certified Public
Accountant above referred to shall be subject to inspection at all
reasonable times by any Bondholder and the City shall mail copies
of such sworn Certificate to any Bondholder requesting the same.
(C) The payment of the debt service on all of the Bonds
issued hereunder shall be further secured forthwith equally and
ratably by a first lien on the proceeds of Special Assessments, to
the extent the same may be lawfully levied, against the lands and
real estate especially benefited or to be especially benefited by
the construction or acquisition of the improvements authorized by
this resolution, and all of the proceeds of such Special Assessments,
to the extent that the same are lawfully levied and collected, shall
be deposited in a special fund to be known as the "Special Assessment
Fund", which is hereby created. Said fund shall constitute a trust
fund for the purposes provided therefor in this resolution, and shall
be maintained with the Atlantic National Bank of West Palm Beach,
West Palm Beach, Florida, as Trustee, and shall be administered pur-
suant to the Trust Agreement to be entered into between the City and
said Trustee pursuant to Section 3.04 (D) (3) hereof.
-28-
Section 3.03. APPLICATION OF BOND PROCEEDS. Ail moneys
received from the sale of any or all of the Bonds issued pursuant
to this resolution shall be deposited by the City with a bank or trust
company to be hereafter designated by resolution of the City Council,
as Trustee, in a trust fund to be 1~o~ as the "Series B Sewer Construc-
tion Trust Fund" which is hereby created. The City and said bank or
trust company shall enter into a Construction Trust Fund Agreement
concerning the application of said fund, said agreement to be in a
form to be hereafter determined by resolution of the City Council.
Said agreement shall provide, among other things, that no withdrawals
shall be made from said Series BiSewer Construction Trust Fund, except
for legal and engineering expenses, interest maturing on the Bonds
prior to, during, and for six months after the completion of said
improvements~ fees of fiscal or financial agents, and expenses in
connection with the issuance and sale of the Bonds authorized by this
resolution, without the written approval of the Consulting Engineers
and only upon receipt by said Trustee of a written requisition
executed by the general manager or other duly authorized official
in charge of the Water and Sewer System specifying the purpose for
which such withdrawal is to be made. If for any reason the moneys
in said fund, or any part thereof, are not necessary for, or are not
applied to the purposes provided in this resolution, then such un-
applied proceeds shall be deposited by the Trustee, upon certification
of the Consulting Engineers that such surplus proceeds are not needed
for the purposes of the Sewer Construction Trust Fund, in the Reserve
Account in the Sinking Fund hereinafter established, and shall be
used only for the purposes therein provided.
Ail of the proceeds of the sale of the Bonds shall be and
constitute trust funds for the purposes hereinabove provided and
there is hereby created a lien upon such moneys, until so applied,
in favor of the holders of the Bonds. The moneys deposited in the
-29-
Se.ries B Sewer Construction Trust Fund may, pending their use for the
purposes provided in this resolution, be temporarily invested in
direct obligations of the United States of America, maturing not later
than twelve months after the date of purchase thereof.
Section 3.04. COVENANTS OF THE CITY. So long as any of the
principal of or interest on any of the Bonds shall be outstanding and un-
paid, or until there shall have been set apart in the Sinking Fund here-
in established, a sum sufficient to pay, when due, the entire principal
of the Bonds issued hereunder remaining unpaid, together with interest
accrued and to accrue thereon, the City covenants with the holders of any
and all of the Bonds issue pursuant to this resolution as follows:
(A) RATES. That the City will fix, establish, maintain and
collect rates, fees, rentals or other charges for the services and
facilities of the combined Water and Sewer System, and revise the same
from time to time whenever necessary, as will always provide funds in
each year sufficient to pay, and out of said funds shall pay, all costs
of operation and maintenance of said Water and Sewer System in such year,
one hundred twenty-five per centum of the maximum debt service require-
ment as hereinafter defined, for the Outstanding 1961 Series A Bonds, the
Outstanding 1960 Bonds, the Outstanding 1950 Bonds and the Outstanding
Contractors' Refunding Agreements in any succeeding year, and, together
with the Utilities Services Taxes and proceeds of Special Assessments
available therefor, one hundred twenty five per centum of the maximum
debt service requirement for the Bonds issued pursuant to this resotutio~
the Outstanding Certificates of Indebtedness and the Outstanding Pro-
missory Note in any succeeding year, and that such rates, fees, rentals
or other charges shall not be reduced so as to be insufficient to
provide adequate revenues for such purposes.
For the purposes of this resolution the term "maximum debt
service requirement in any year" for any bonds shall mean the maximum
amounts required to be paid in such year into any sinking fund, principsl
and interest account and bond redemption account or mandatory sinking
fund for such bonds.
(B) WATER AND SEWER SYSTEM REVENIYE FUND. That the entire
Gross Revenues derived from the operation of the combined Water and
Sewer System shall upon receipt thereof be deposited in a special fund
in a bank or trust company in the State of Florida which is eligible
-30-
under the State laws to receive deposits of State and Municipal Funds,
which fund is hereby designated as the "~ater and Sewer System Revenue
Fund". Said fund shall constitute a trust fund for the purposes pro-
vided in this resolution, and shall be kept separate and distinct
from all other funds of the City and used only for the purposes and
in the manner provided for in this Section 3.04; provided, however,
that the City shall comply fully with all the covenants, agreements
and provisions of the resolution which authorized the issuance of
the Outstanding 1950 Bonds, with the provisions of the Outstanding
Contractorst Refunding Agreements, with the provisions of the resolu-
tion which authorized the issuance of said Outstanding 1960 Bonds
and with the provisions of the resolution which authorized the issuance
of said Outstanding 1961 Series A Bonds, as long as any of said out-
standing obligations are outstanding and unpaid or until adequate
provision is irrevocably made for the payment thereof. In order to
accomplish said purpose the City shall, as long as any of said outstand-
ing obligations are outstanding and unpaid, or until adequate provision
is irrevocably made for the payment thereof, keep separate records of
the revenues derived from the water system and the sewer system of
said combined Water and Sewer System, and apply such revenues derived
from the water system in accordance with the provisions of the pro-
ceedings which authorized said Outstanding 1950 Bonds, the provisions
of said Outstanding Contractors' Refunding Agreements, the provisions
of the proceedings authorizing said Outstanding 1960 Bonds and said
Outstanding 1961 Series A Bonds and the provisions of this resolution.
In applying and distributing the net revenues derived from said water
system of said combined Water and Sewer System, all payments for
principal and interest, and reserves therefor, shall be on a parity
and rank equally as between said Outstanding 1960 Bonds and said Out-
standing 1961 Series A Bonds, but payments for principal and interest,
and reserves therefor, on the Outstanding 1960 Bonds and the Outstand-
ing 1961 Series A Bonds shall be junior, subordinate and inferior to
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said Outstanding 1950 Bonds and said Outstanding Contractors, Refund-
ing Agreements, and payments for principal and interest, and reserves
therefor, on the Bonds issued pursuant to this resolution shall be
juniors subordinate and inferior to said Outstanding 1950 Bonds,
said Outstanding Contractors, Refunding Agreements, said Outstanding
1960 Bonds and said Outstanding 1961 Series A Bonds. In applying
and distributing the net revenues from the sewer system of said
combined Water and Sewer System, all payments for principal and
interest, and reserves therefor shall be on a parity and rank equally
as between said Outstanding 1960 Bonds and the Outstanding 1961 Series
A Bonds~ but payments fo~ principal and interest, and reserves there-
for, on the Bonds issued pursuant to this resolution shall be junior,
subordinate and inferior to said Outstanding 1960 Bonds and said
Outstanding 1961 Series A Bonds.
After the final payment, or the making of irrevocable pro-
vision for payment, of all said Outstanding 1950 Bonds, said Outstand-
ing Contractors, Refunding Agreements, said Outstanding 1960 Bonds
and said Outstanding 1961 Series A Bonds then all revenues derived
from said combined Water and Sewer System shall be deposited in the
Water and Sewer System Revenue Fund created by this resolution and
applied and distributed in the manner provided in this resolution.
(C) OPERATING AND MAINTENANCE. That it will maintain in
good condition said l~ater and Sewer System and all parts thereof, and
will operate the s~me in an efficient and economical manner, making
such expenditures for equipment and for renewal, repair and replace-
ment as may be proper for the economical operation and maintenance
thereof.
(D) DISPOSZTION OF REVENUES. That all revenues at any
time remaining on deposit in the ~ater and Sewer System Revenue Fund
shall be disposed of only in the following manner and in the follow-
ing order:
(1) Revenues shall first be used for the payment of all
-32-
current Operating Expenses of said combined Water and Sewer System,
as defined herein.
(2) Revenues of the water system of the combined Water and
Sewer System shall next be used to make the payments required by the
resolution which authorized the issuance of the Outstanding 1950
Bonds and the principal payments required to be made pursuant to, and
on account of, said Outstanding Contractors' Refunding Agreements, and
Revenues of the combined Water and Sewer System shall next be used to
make the payments required by the resolutions which authorized the is-
suance of the Outstanding 1960 Bonds and the Outstanding 1961 Series
A Bonds.
(3) Thereafter all revenues remaining on deposit in the
Revenue Fund shall be deposited in a fund to be known as the "1961
Series B Water and Sewer Revenue Bond Fund" (hereinafter called "1961
Series B Bond Fund") which fund is hereby created. Said 1961 Series
B Bond Fund shall be maintained with the Atlantic National Bank of
West Palm Beach, West Palm Beach, Florida, as Trustee, and shall be
held and administered by said Trustee under a Trust Agreement to be
entered into by the City and said Trustee, which Trust Agreement
shall be in such form as shall hereafter be determined by resolution
of the City Council. Ail moneys at any time remaining on deposit in
the 1961 Series B Bond Fund shall be disposed of by the Trustee only
in the following manner and order of priority:
(a) Moneys on deposit in the 1961 Series B Bond Fund shall
first be used for deposit in a fund to be under the administration
and control of the Trustee, to be kno~ as the "1961 Series B Sinking
Fund", which is hereby created and established, and the Trustee shall
apportion, set apart and deposit in an account in said 1961 Series B
Sinking Fund to be known as the "Principal and Interest Account", which
is hereby created and established, on the fifteenth (!5th) day of each
month in each year, beginning with the fifteenth (!5th) day of the first
full calendar month following the date on'which any or all of the Bonds
are delivered to the purchaser thereof, an amount equal to one-sixth
-33-
(1/6) of the interest which will mature and become due on said Bonds
on the next semi-annual interest payment date; provided, however,
that interest on the Bonds accruing prior to, during and for six (6)
months after the completion of construction and acquisition of the
improvements herein authorized may be paid from the Series B Sewer
Construction Trust Fund; and on the fifteenth (15th) day of each
month in each year, beginning with December 15, 1963, an amount equal
to one-twelfth (1/12) of the principal which will mature and become
due on the Bonds maturing in the years 1964 to 1973, both inclusive,
on the next principal maturity date.
(b) Thereafter, the Trustee shall apportion and set apart
out of the 1961 Series B Bond Fund and deposit in an account in said
1961 Series B Sinking Fund to be l~own as the "Reserve Account",
which is hereby created and established, on the fifteenth (15th) day
of each month in each year, beginning with the first full calendar
month following the date on which any or all of the Bonds are delivered
to the purchaser thereof, an amount equal to one-twelfth (1/12) of
twenty per centum (20~) of the maximum debt service requirement for
the Bonds in any succeeding year.
Any withdrawals from the Reserve Account shall be subsequent-
ly restored from the first revenues available therefor after all
current payments pursuant to clauses (a) and (b) above, including
any deficiencies for prior payments have been made in full. The
Trustee shall not be required to make any further payments into said
Reserve Account when there has been deposited therein and so long as
there shall remain therein a sum equal to the maximum debt service
requirement for the Bonds in any succeeding year.
For the purposes of this clause (b), maximum debt service
requirement for the Bonds in any succeeding year shall mean the
ma×imum -amounts required to be deposited in any succeeding year into
th.~ lO..<l~,~ Series 3 SinlcinS ~'u~d ~ur;s~ant~ to clause (a) of this subsection
and into the Bond Redemption Account pursuant to clause (c) of this
Moneys in the Reserve Account shall be used only for the
purpose of paying maturing principal and interest on the Bonds and
for making the deposits into the Bond Redemption Account, in each
year, to the extent that funds otherwise deposited in the 1961 Series
B Sinking Fund are insufficient therefor and for no other purpose,
except that said moneys may be invested and reinvested as provided
for hereim.
The Trustee shall not be required to make any further pay-
ments into the 1961 Series B Sinking Fund when the aggregate amount
of funds on deposit in the various accounts in said 1961 Series B
Sinking Fund are at least equal to the aggregate principal amount of
Bonds issued pursuant to this resolution then outstanding, plus all
interest accrued or to accrue on said Bonds then outstanding, or
when said Bonds then outstanding shall have been previously duly
called for prior redemption and sufficient funds have been irrevocably
placed in trust for the payment of such Bonds then outstanding, in-
cluding interest accrued thereon and redemption premium, if any.
(c) Thereafter, the Trustee shall apportion and set apart
out of the 1961 Series B Bond Fund and deposit in an account in said
1961 Series B Sinking Fund to be known as the "1961 Series B Bond
Redemption Account~, which is hereby created and established, on the
fifteenth (15th) day of each month in each year, beginning with
June 15, 1965, an amount equal to one-twelfth (1/12) of the annual
amount stated below to be accumulated for such year:
Year Ending Annual Year Ending Annual
May 31st Amount May 31st Amount
1966 $ 1,010 1984 $45,000
1967 2,020 1985 46,000
1968 3,030 1986 48,000
1969 4,0%0 1987 50,000
197o 5,o5o 1988 53,ooo
1971 6,030 1989 55,000
1972 7,035 1990 57,000
1973 8,040 1991 60,000
1974 29,145 1992 62,000
1975 30,150 1993 65,000
-35-
Year Ending
May 31st
Annual Year Ending Annual
AmQunt May 31st Amount
1976 $32,000 1994 $68,000
1977 33,000 1995 70,000
1978 35,000 1996 73,000
1979 36,000 1997 76,000
1980 38,000 1998 80,000
1981 39,000 1999 83,000
1982 41,ooo 2oo0 67,000
1983 43,000
The moneys in said 1961 Series B Bond Redemption Account
shall be used solely for the purchase or redemption of Bonds. The
Trustee may at any time purchase any of said Bonds at prices not
greater than the then redemption price of said Bonds or, if the Bonds
be not then redeemable prior to maturity, at prices not greater than
the redemption price of such Bonds on the next ensuing redemption
date, and the Trustee shall, to the extent of any moneys in said 1961
Series B Bond Redemption Account on the twentieth (20th) day of March
in each year, be obligated to use such moneys for the redemption prior
to maturity of Bonds on the next June lst; provided, that the Trustee
shall not be so obliged to redeem Bonds prior to maturity unless and
until there are suf£1cient moneys on deposit in the 1961 Series B
Bond Redemption Account to provide for the redemption of at least Ten
Thousand Dollars ($10,000) principal amount of Bonds, at any one time.
(d) Thereafter, the Trustee shall apportion and set apart
out of the 1961 Series B Bond Fund and deposit in a fund to be under the
direct administration and control of the City and to be known as the
"Renewal and Replacement Fund", which is hereby created and established,
on the fifteenth (15th) day of each month in each year, an amount equal
to one twelfth (1/12) of five per centum (5~) of the gross revenues
actually received from the operation of said Water and Sewer System
during the preceding twelve months, or such larger amount determined
to be necessary by the City Council; provided, however, that as long
as any of the Outstanding 1950 Bonds, the Outstanding 1960 Bonds or
the Outstanding 1961 Series A ~nds are outstanding and unpaid, or
until adequate provision is irrevocably made for the payment thereof,
any amounts~deposited in the Renewal and Replacement Fund under the
-36-
n~n~o--,'~?,~,· ....... o~,e~ ..... i .... ~ the issuance of said ..... c
0u~s~andlns 1750
Bonds, the Outstanding~900' ~ ~ ' ~, ~i '- o 196i. SePio;3 A
monc~s ~n~. ~he 0tltsSanctin~.-
3onds may be deducted from the ~nounts required to be deposited in
the Renewal and Replacement Fund created by this resolution. The funds
on deposit in such Renewal and Replacement Fund shall be used only
for the purpose of paying the cost of additions, extensions or improve-
ments to, or the replacement of capital assets of the City's combined
Water and Sewer System, or any part thereof; provided, however, that
upon the certification of the City Council that funds in said Renewal
and Replacement Fund are not needed for such purposes, such excess
funds shall be deposited in the 1961 Series B Bond Redemption Account
and used and applied in the same manner as other moneys on deposit
therein; provided, further, however, that if at any time moneys in
the 1961 Series B Bond Fund are insufficient to ma~e the deposits
provided to be made into the various accounts in the 1961 Series B
Sinking Fund, moneys on deposit in the Renewal and Replacement Fund
may be withdra~m, therefrom and deposited in the various accounts in
the 1961 Series B Sinking Fund, in the order of priority above set
forth, to the extent of any deficiencies in said various accounts.
(e) If on any monthly payment date, the revenues are in-
sufficient to place the required amount in any of the accounts or
funds above provided, the deficiency shall be made up on the sub-
sequent payment dates in addition to the payments which would other-
wise be required to be made into such accounts or funds on the sub-
sequent payment dates.
(f) Thereafter, any moneys remaining on deposit in the
1961 Series B Bond Fund on the twentieth (20th) day of each month in
each year, after all current payments pursuant to clauses (a), (b),
(c) and (d) of this subsection have been made in full on the preceding
fifteenth (15th) day of such month, shall be deemed surplus funds. On
-37-
the twentieth (20th) day of each month in which there is a surplus,
said surplus shall be returned by the Trustee to the City to be used
for any lawful Water and Sewer System purpose or upon direction by the
City shall be retained by the Trustee to be used for the purchase or
redemption of Bonds authorized by this resolution.
Notwithstanding the foregoing provisions the City shall first
comply with all of the provisions of the resolutions authorizing the
issuance of the Outstanding 1960 Bonds and the Outstanding 1961 Series
A Bonds prior to the use of any surplus funds pursuant to this resolu-
tion.
(4) All special funds set up and created by this resolution
shall constitute trust funds for the purposes provided herein for such
funds. All of such funds shall be continuously secured in the same
manner as State and municipal funds are required to be secured by the
laws of the State of Florida.
Moneys on deposit in the Revenue Fund and in the 1961 Series
B Bond Fund shall not be invested at any time. Moneys on deposit in
the accounts in the Sinking Fund (except the Reserve Account therein)
may be invested and reinvested by the Trustee only in direct obliga-
tions of the United States of America maturing not later than the
dates on which the moneys in such accounts will be needed for the pur-
poses of said accounts. The moneys in the Reserve Account in the
1961 Series B Sinking Fund and in the Renewal and Replacement Fund
may be invested and reinvested only in direct obligations of the United
States of America.
(E) (1) DISPOSITION OF MONEYS IN UTILITIES SERVICES TAX
FUND. All moneys in said Utilities Services Tax Fund shall be used
by the Trustee on the fifteenth day of each month, for the deposit
in the Principal and Interest Account, the Reserve Account and the
1961 Series B Bond Redemption Account in the 1961 Series B Sinking
Fund, of all amounts necessary, which together with the moneys available
on such dates from moneys in the Special Assessment Fund and revenues
of the Water and Sewer System, will be sufficient to make all payments
required on such dates into said Principal and Interest Account,
Reserve Account and 1961 Series B Bond Redemption Account in the 1961
Series B Sinking Fund, including any deficiencies for prior payments.
-38-
It is the express intention of this subsection that the Trustee
shall be required to use all available moneys in the Special Assess-
ment Fund and in the Revenue Fund to make all required payments into
the Principal and Interest Account, the Reserve Account and the 19bl
Series B Bond Redemption Account in said 1961 Series B Sinking Fund,
including any deficiencies for prior payments, to the full extent that
the moneys in said Special Assessment Fund and in said Revenue Fund
are sufficient therefor, and that moneys in the Utilities Services Tax
Fund shall only be used for such purposes to the full extent that the
moneys in said Special Assessment Fund and in said Revenue Fund are
insufficient therefor.
After the twentieth day of each month any moneys remaining in
said Utilities Services Tax Fund after all required current payments
into the Principal and Interest Account, Reserve Account and 1961 Series
B Bond Redemption Account in said 19bl Series B Sinking Fund, including
any deficiencies for .prior payments, have been made in full, shall be
returned by the Trustee to the City, to be used by said City for any
other lawful purpose, but no moneys in said Utilities Services Tax
Fund shall ever be returned to the City to be used for any such other
purposes until all such required current payments into said Principal
and Interest Account, Reserve Account and 1961 Series B Bond Redemption
Account in the 1961 Series B Sinking Fund, including any deficiencies
for prior payments, have been made in full.
(2) DISPOSITION OF MONEYS IN SPECIAL ASSESSMENT FUND. All
moneys in said Special Assessment Fund shall be used by the Trustee on
the fifteenth day of each month, prior to the use of any moneys in
either the Revenue Fund or the Utilities Services Tax Fund, for the
deposit into the accounts in the 1961 Series B Sinking Fund, of all
amounts necessary to make all payments required on such dates into said
accounts in the 1961 Series B Sinking Fund, including any deficiencies
for prior payments.
It is the express intention of this subsection that the Trustee
shall be required to use all available moneys in the Special Assessment
Pund to make all required payments into the accounts in the 1961 Series
B Sinking ~nd, including any deficiencies for prior payments, to
the extent that moneys in said Special Assessment Fund are sufficient
therefor, prior to the use of any moneys in the Revenue Fund and in
the Utilities Services Tax Fund for such purposes, and that moneys
in said Revenue Fund and said Utilities Services Ta× Fund shall only
be used for such purposes to the full e×tent that the moneys in the
Special Assessment Fund are insufficient therefor.
After the twentieth day of each month any moneys in said
Special Assessment Fund after all required current payments into
said accounts in the 1961 Series B Sinking Fund, including any de-
ficiencies for prior payments, have been made in full, shall be
retained in said Special Assessment Fund, to be used to ma~c the pay-
ments into the accounts in said 1961 Series B Sinking Fund, required
on future succeeding monthly payment dates. Beginning with the
twentieth day of April, 1966, and thereafter on the twentieth day
of October and the twentieth day of April in each year, any excess
moneys or further balance in said Special Assessment Fund, after all
required payments into the various accounts in the 1961 Series B
Sinking Fund have been made as hereinabove provided, shall be used
in amounts as nearly as practicable for the redemption prior to
maturity of Bonds issued hereunder, in the manner provided in this
resolution or for the purchase of Bonds of the last ten maturities
then outstanding at not more than the redemption price of said Bonds
on the ne~t ensuing redemption date.
Moneys on deposit in the Special Assessment Fund may,
pending their use, be invested and reinvested only in direct obliga-
tions of the United States of America maturing not later than one
year after the date of purchase thereof.
The foregoing provision notwithstanding, the City shall,
during the time that moneys in the Special Assessment Fund shall be
used for the payment of debt service on the Bonds as hereinabove
provided, continue to make the required payments for Operating Ex-
penses and into the Renewal and Replacement Fund from moneys on deposit
in the Revenue Fund, as provided in Subsection (D) of this Section 3.04.
(?) SALE OF TH~ WATER AND SE~R SYSTEM. That the Water
and Sewer System may be sold, mortgaged, leased or otherwise disposed
of only as a whole or substantially as a whole, and only if the net
proceeds to be realized shall be sufficient fully to retire all of
the Bonds issued pursuant to this resolution, and all interest thereon
to their respective dates of maturity or earlier redemption date. The
proceeds from such sale, mortgage, lease or other disposition of said
Water and Sewer System shall immediately be deposited in the 1961
Series B Sinking Fund and shall be used only for the purpose of paying
the principal of and interest on the Bonds issued pursuant to this
resolution, as the same shall become due, or the redemption of callable
Bonds or the purchase of Bonds at a price not greater than the then
redemption price thereof or if such Bonds be not then callable at a
price not greater than the redemption price on the next ensuing re-
demption date.
The foregoing provision notwithstanding, the City shall
have and hereby reserves the right to sell, lease or otherwise dispose
of any of the property comprising a part of the Water and Sewer System
hereafter determined in the manner provided herein to be no longer
necessary, useful or profitable in the operation thereof. Prior to
any such sale, lease or other disposition of said property, if the
amount to be received therefor is not in excess of $1,00G-.~00, the duly
authorized officer in charge of such Water and Sewer System shall
make a finding in writing determining that such property comprising
a part of such Water and Sewer System is no longer necessary, useful
or profitable in the operation thereof, and such proceeds shall be
deposited in the Renewal and Replacement Fund, and used only as provided
herein for such Fund. If the amount to be received from such sale,
lease or other disposition of said property shall be in excess of
$1,000.00, but not in excess of $100,000.00, the duly authorized officer
in charge of such Water and Sewer System shall first make a finding
in writing determining that such property comprising a part of such
Water and Sewer System is no longer necessary, useful or profitable
in the operation thereof, and the governing body of the City shall,
by resolution duly adopted, approve and concur in the finding of such
duly authorized officer, and authorize such sale, lease or other
disposition of said property. The proceeds derived from any such
sale, lease or other disposition of said property, in excess of
$1,000.00 and not in excess of $100,000.00 shall be placed in the
1961 Series B Bond Redemption Account in the 1961 Series B Sinking
Fund or into the Renewal and Replacement Fund provided for in this re-
solution, and shall be used and applied in the same manner as other
moneys on deposit therein. Such payment of such proceeds into the
1961 Series B Bond Redemption Account or the Renewal and Replacement
Fund shall not reduce the amounts required to be paid into said funds
by other provisions of this resolution.
No sale, lease or other disposition of the properties of
the Water and Sewer System shall be made by the City if the proceeds
to be derived therefrom shall be in excess of $100,000.00 and insuf-
ficient to pay all of the principal of Bonds then outstanding and all
interest thereon to their respective dates of maturity, without the
prior approval and consent in writing of the holders or their duly
authorized representatives of sixty-six and two-thirds per centum
(bb 2/3%) in amount of Bonds then outstanding. The City shall prepare
the form of such approval and consent for execution by Bondholders,
or their duly authorized representatives, which form shall provide
for the disposition of the proceeds of the sale, lease or other dis-
position of such properties of such Water and Sewer System.
-42-
Nothing hereinabove set forth in this subsection (F) shall
he deem..~d to prejudice ~ - ' ........ u~,. ......... of u~ '~-~ ..... ~'
1}.p0~'~ 3ond~- ~ t~',~- ..... 0u. tstanding 19~i0 Bonds and the~s ........ ~.na~na~' 1961
oc ..... Oi an}r iDs. Pt oi~ % ~e coiilbin2d ~'~'~'~ eP
Sewer System shall be subject So the terms and oonditions of the
resolutions which authorized the issuance of said Outstanding 1950
Bonds, said Outstanding 1960 Bonds and said Outstanding 1961 Series
A Bonds.
{G) ISSUANCE 0P 0T~R OBLIGATIONS. Tha~ the City will
not issue any other obligations, except pari passu additional bonds
hereafter issued under the terms, limitations and conditions contained
in the proceedings authorizing the issuance of the ~standing 1960
Bonds and the Outstanding 1961 Series A Bonds, and being on a parity
therewith~ payable from the revenues derived from the operation of
said Water and Sewer System, or said Utilities Services T~es or
Special Assessments, nor voluntarily create or cause to be created
any debt~ lien, pledge~ assignment, encumbrance or any other oharge
having priority to or being on a parity with the lien of the Bonds
issued pursuant to this resolution and the interest thereon, upon
any of the income and revenues of said Water and Sewer System or said
Utilities Services Taxes or Special Assessments. Any other obligations
issued by the City except such additional pari passu bonds hereof tot
issued pursuant to the proceedings authorizing the issuance of said
Outstanding 1960 Bonds and said Outstanding 1961 Series A Bonds shall
contain an express statement that such obligations ape junior ~d
subordinate in all respects to the Bonds issued pursuant to this resolu-
tion as to lien on and source and security for payment from the reve-
nues of said Water and Sewer System, or said Utilities Services Taxes,
or Special Assessments.
(H) ZNS~RANCE. That the City will carry such insurance
as is ordinaril~ carried by private corporations o~ing and operating
similar utilities as the Water and Sewer System with a reputable
insurance carrier or carriers, including liability insurance, and
insurance against loss or damage by fire, explosion, hurricane,
earthquake, cyclone, occupancy or other hazards and risks, and said
property loss or damage insurance shall at all times be in an amount
or amounts equal to the fair appraisal value of the buildings,
properties, furniture, fixtures and equipment of said Water and Sewer
System. In the time of war, the City shall also carry, in said
amount, such insurance as may be available against loss or damage by
the risks and hazards of war.
(I) BOOKS AND P~CORDS. That the City will keep books and
records of the Water and Sewer System and of the collection of Utilities
Services Taxes and Special Assessments which shall be separate and
apart from all other books, records and accounts of the City, in which
complete and correct entries shall be made in accordance with standard
principles of accounting of all transactions relating to the Water
and Sewer System, and any holder of a Bond or Bonds issued pursuant
to this resolution shall have the right at all reasonable times to
inspect all records, accounts and data of the City relating thereto.
The City shall, at least once a year, cause the books,
records and accounts relating to the Water and Sewer System, Utilities
Services Ta~es and Special Assessments to be properly audited by a
competent auditor or accountant of recognized standing, which audit
shall include the number of users of the Water and Sewer System or
any part thereof, and shall mail upon request, and make available,
the report of said auditor or accountant at all reasonable times to
any holder or holders of Bonds issued pursuant to this resolution,
any taxpayer or citizen of said City, or anyone acting for and in
behalf of such taxpayer, citizen or Bondholder or Bondholders.
The City shall also, at least once every three years, cause
said Water and Sewer System to be inspected by the Consulting En-
gineers, ~ho shall make a written report of their inspection, and the
City shall carry out all reasonable recommendations of such Consulting
Engineers with respect to the o~eration and maintenance of said Water
and Sewer System and the construction or acquisition of additions, ex-
tensions and improvements thereto°
The Trustee shall, at least once a year, issue a written
report to the City which report shall contain a record of all moneys
received and disbursed by said Trustee, the numbers and principal
sm~ount of any Bonds and coupons paid during the preceding twelve
months, the status of any investments made by said Trustee from the
Funds maintained by it, and the balance remaining in each Fund main-
tained and administered by said Trustee.
Promptly after the receipt of each such audit report, En-
gineer's report, or Trustee's report a copy thereof shall be mailed
by the City to any Bondholder who shall have filed his address with
the City and requested in writing that a copy of such reports be
furnished him.
(J) OPERATING BUDGET. That the City shall annually prepare
and adopt by resolution of its governing body a detailed budget of
the estimated expenditures for operation and maintenance of the Water
and Sewer System during the succeeding fiscal year as established by
the City. No expenditures for the operation and maintenance of the
Water and Sewer System shall be made in any such fiscal year in excess
of the amounts provided therefor in such budget without a written
finding and recommendation by the general manager of such Water and
Sewer System or other duly authorized officer in charge thereof,
which finding and recommendation shall state in detail the purpose
of and necessity for such increased e×penditures for the operation
and maintenance of the ~ater and Sewer System, and no such increased
expenditures shall be made until the governing body of said City
shall have approved such finding and recommendation by a resolution
duly adopted. No increased expenditures in excess of ten per centum
(10~) of the amount of such budget shall be made except upon the
further certificate of the Consulting Engineers that such increased
expenditures are necessary for the continued operation of said Water
and Sewer System. The City shall mail copies of such annual budget
and all resolutions authorizing increased expenditures for operation
and maintenance to any holder or holders of Bonds issued pursuant to
this resolution who shall file his address with the City and request
in writing that copies of all such budgets and resolutions be furnish-
ed him or them, and shall make available such budgets and all resolu-
tions authorizing increased expenditures for operation and maintenance
of the Water and Sewer System at all reasonable times to any holder
or holders of Bonds issued pursuant to this resolution, or anyone
acting for and in behalf of such Bondholder or Bondholders.
(K) MAINTENANCE OF WATER AND SE~R SYSTEM. That the City
will maintain said Water and Sewer System in good condition and con-
tinuously operate the ss~e in an efficient manner and at a reasonable
cost.
(L) SERVICES RENDERED TO TH~ CITY OR T0~. That the City
will not render or cause to be rendered any free services of any nature
by its Water and Sewer System, nor will any preferential rates be
established for users of the same class; and in the event the City
or the To~ of Ocean Ridge, or any department, agency, instrumentality,
officer or employee of said City or To~, or any other municipality
or political subdivision of the State of Florida shall avail itself
or themselves of the facilities or services provided by said Water
and Sewer System, or any part thereof, the same rates, fees or charges
applicable to other customers receiving like services under similar
circumstances shall be charged said City or To~ and any such
department, agency, instrumentality, officer or employee. Such
charges shall be paid as they accrue, and the City or To~~ shall
transfer from their general funds sufficient sums to pay such charges.
The revenues so received shall be deemed to be revenues derived from
the operation of the combined Water and Sewer Syste, and shall be
deposited and accounted for in the same manner as other revenues
from such operation of the Water and Sewer System.
(M) REMEDIES. Any holder of Bonds or any coupons apper-
taining thereto, issued under the provisions of this resolution, or
any trustee acting for such Bondholders in the manner hereinafter
provided, may either at law or in equity, by suit, action, mandamus
or other proceeding in any court of competent jurisdiction, protect
and enforce any and all rights under the laws of the State of Florida,
or granted and contained in this resolution and may enforce and compel
the performance of all duties required by this resolution or by any
applicable statutes to be performed by the City or by any officer
thereof, including the fixing, charging and collecting of rates,
fees, rentals or other charges for the services and facilities of
the Water and Sewer System and for the collection of said Utilities
Services Taxes and Special Assessments.
In the event that default shall be made in payment of the
interest on or the principal of any of the Bonds issued pursuant to
this resolution, as the same shall become due, or in the making of
the reserve, sinking fund or other payments required to be made by
this resolution, or in the event that the City or any officer, agent
or employee thereof shall fail or refuse to comply with the provisions
of this resolution, or shall default in any covenant made herein, and
in the further event that any such default shall continue for a
period of thirty (30) days, any holder of such Bonds, or any trustee
appointed to represent Bondholders as h~reinafter provided, shall be
entitled as of right to the appointment of a receiver of the Water
and Sewer System in an appropriate judicial proceeding in a court of
competent jurisdiction, whether or not such holder or trustee is also
seeking or shall have sought to enforce any other right or exercise
any other remedy in connection with Bonds issued pursuant to this
resolution.
The receiver so appointed shall forthwith, directly or by
his agents and attorneys, enter into and upon and take possession of
the Water and Sewer System, and each and every part thereof, and shall
hold, operate, maintain, manage and control such Water and Sewer
System, and each and every part thereof, and in the name of the City
shall exercise all the rights and powers of the City with respect
to the Water and Sewer System and the Utilities Services Taxes and
proceeds of Special Assessments as the City itself might do. Such
receiver shall collect and receive all revenues and maintain and
operate such ~/ater and Sewer System and collect and receive such
Utilities Services Taxes and proceeds of Special Assessments lawfully
levied, in the manner provided in this resolution, and comply under
the jurisdiction of the court appointing such receiver, with all of
the provisions of this resolution.
i~enever all that is due upon Bonds issued pursuant to this
resolution, and interest thereon, and under any covenants of this
resolution for reserve, sinking fund or other funds, and upon any
other obligations and interest thereon having a charge, lien or en-
cumbrance upon the revenues of the Water and Sewer System, or said
Uti!itie~ jiarvices Taxes or proceeds of Special Assessments shall
have ba~'~ a-id and ~ ~ " ~
~n p _ maao buoa, and a!_k d,}faults unde? the provisions
of th-is resolution shall ' '~-- been
._ n=v:s cured and made sood~ possession
of the Water and Sewer System and of the Utilities Services Taxes
and proceeds of Special Assessments shall be surrendered to the
City upon the entry of an order of the court to that effect. Upon
any subsequent default, any holder of Bonds issued pursuant to this
resolution, or any trustee appointed for Bondhoiders as hereinafter
provided, shall have the right to secure the further appointment of
a receiver upon any such subsequent default.
Such receiver shall, in the performance of the powers herein-
above conferred upon him, be under the direction and supervision of
the court making such appointment, shall at all times be subject to
the orders and decrees of such court, and may be removed thereby
and a successor receiver appointed in the discretion of such court.
Nothing herein contained shall limit or restrict the jurisdiction of
such court to enter such other and further orders and decrees as such
court may deem necessary or appropriate for the exercise by the
receiver of any function not specifically set forth herein.
Any receiver appointed as provided herein shall hold and
operate such i~ater and Sewer System and collect said Utilities Services
Taxes and proceeds of Special Assessments in the name of the City and
for the joint protection and benefit of the City and holders of Bonds
issued pursuant to this resolution. Such receiver shall have no
power to sell, assign, mortgage or otherwise dispose of any assets
of any kind or character belonging or pertaining to such Water and
Sewer System, except as provided in Section 3.04 (F) hereof, but the
authority of such receiver shall be limited to the possession,
operation and maintenance of the Water and Sewer System and the col-
lection of said Utilities Services Taxes and proceeds o2 Special
Asscsm~ents for the sole purpose of thepro~on~" of '~oth ~-'-one~ CitN
amount of not less.__ than t~'~enu~-.:.~v~: ~.~'~.r .... ~.~ (27,]) o~_.~ 3onds issued
under this resolution then outstanding may by a duly executed certifi-
cate in writing appoint a trustee for holders of Bonds issued pursuant
to this resolution, with authority to represent such Bondholders in
any legal proceedings for the enforcement and protection of the rights
of such Bondholders. Such certificate shall be executed by such
Bondholders or their duly authorized attorneys or representatives
and shall be filed in the office of the City Clerk.
(N) ENFORCEMENT OF COL~CTIONS. That the City will dili-
gently enforce and collect, or cause to be enforced ~d collected, all
rates, fees, rentals or other charges for the services and facilities
of the Water and Sewer System, and said Utilities Services Taxes
and proceeds of Special Assessments lawfully levied, and take all
s~epo, actions and proceedings for the enforcement and collection
of such fees, rentals or other charges, and said Utilities Services
Taxes and proceeds of Special Assessments lawfully levied which shall
become delinquent to the full extent permitted or authorized by the
Act and by the laws of the State of Florida.
Charges for the use of the services and facilities of the
Water and Sewer System shall be made and rendered on the same bill
and the City further covenants and agrees that, to the e~tent permitted
by law, it will discontinue, or cause the discontinuance of, the
furnishing of both water services and sewer services to all delinquent
users of said Water and Sewer System until all delinquent rates, fees,
rentals or other charges, together with reasonable interest and other
penalties, have been fully paid and discharged, and shall adopt, or
cause to be adopted, reasonable rules and regulations governing the
discontinuance of water services and sewer services to delinquent
users of said Water and Sewer System, including interest and penalties,
and charges for the restoration of water services and sewer services
when all delinquent rates, fees, rentals or other charges, together
with interest and penalties, have been fully paid and discharged,
in the manner provided by the Act and by the laws of the State of
Florida.
(0) AVAILABILITY OF UTILITIES SERVICES TA~S. That the
City has lawful power to pledge said Utilities Services Ta×es, as
a valid lien thereon, in the manner provided in this resolution~
and that any pledge or encumbrance hereafter made of said Utilities
Services Ta~es, or any part thereof, will be made expressly sub-
ordinate and inferior in all respects to the pledge of said Utilities
Services Taxes to the Bonds.
The provisions of this Section 3.O~ shall not be deemed,
however, to impair in any manner the rights of the holders of the
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outstanding Certificates of Indebtedness, dated September 1, 1955,
issued pursuant to said 1955 Resolution, or the rights of the holders
of the outstanding Promissory Note, dated October 2, 1961, issued
pursuant to said 1961 Resolution, and the City shall comply fully
with all the covenants and agreements contained in said 1955 Resolu-
tion and said 1961 Resolution.
(P) CONNECTIONS WITH SEWER SYSTEM. That the City will,
to the full extent permitted by law, require all lands, buildings and
structures within the City which can use the facilities and services
of the portion of the Water and Sewer System constituting the sewer
system, to connect with and use the facilities and services of such
sewer system, and to cease all other means and methods for the col-
lection, purification, treatment and disposal of sewage and waste
matter.
Section 3.05. CONSULTING ENGINEERS. That the City will
retain Russell & Axon, Engineers, of St. Louis, Missouri, or other
qualified and recognized engineers, to supervise the construction,
acquisition and installation of the additions, extensions and improve-
ments to the Sewer System of the combined Water and Sewer System
authorized by this resolution; and after the completion thereof the
City will retain on an annual basis said Russel & Axon, Engineers,
of St. Louis, Missouri, or other qualified and recognized engineers,
to inspect and make a report every three years on said Water and
Sewer System and the operation and management thereof, and to generally
supervise the operation and maintenance of said Water and Sewer System
and to perform the duties r~lating thereto provided for in this resolu-
tion.
Section 3.06. NO COMPETING SYSTEM. To the full extent
permitted by law, the City will not grant, or cause, consent to or
allow the granting of, any franchise or permit to any person, firm,
corporation or body, or agency or instrumentality whatsoever, for
the furnishing of water or sewer services to or within the City of
Boynton Beach.
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Section 3.07. MAINT~NANCE 0F FRANCHISE WITH T0¥~ OF OCEAN
RIDGE. That the City will continue to maintain and perform the terms
of the franchise with the Town of Ocean Ridge, and will not rescind,
or consent to, or permit the rescission of, said franchise, or alter
or modify, or consent to or permit the alteration or modification
of, said franchise in any way which will materially and adversely
affect the rights and security of the holders of Bonds issued pur-
suant to this resolution.
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ARTICLE IV
MISCELLANEOUS PROVISIONS
Section 4.01. MODIFICATION OR ~ND~NT. No material
modification or amendment of this resolution or of any ordinance
or resolution amendatory thereof or supplemental thereto, may be
made without the consent in writing of the holders of two-thirds or
more in principal amount of the Bonds then outstanding~ provided, how-
ever, that no modification or amendment shall permit a change in the
maturity of such Bonds or a reduction in the rate of interest thereon,
or in the amount of the principal obligation or affecting the uncon-
and
ditional promise of the City~ lev~ collect rates, fees, rentals and
other charges for said Water and Sewer System, said Utilities Services
Taxes and said Special Assessments, or to pay the principal of and
interest on the Bonds, as the same mature and become due, from the
revenues of the Water and Sewer System, said Utilities Services
Taxes and said Special Assessments, or reduce such percentage of
holders of such Bonds required above for such modifications or
amendments, without the consent of the holders of such Bonds.
Section 4.02 SEVERABILITY OF INVALID PROVISIONS. If
any one or more of the covenants, agreements or provisions of this
resolution should be held contrary to any express provision of law
or contrary to the policy of express law, though not expressly pro-
hibited, or against public policy, or shall for any reason whatsoever
be held invalid, then such covenants, agreements or provisions shall
be null and void and shall be deemed separate from the remaining
covenants, agreements or provisions, sad shall in no way affect the
validity of all the other provisions of this resolution or of the
Bonds or coupons issued hereunder.
Section 4.03. VALIDATION AUTHORIZED. That Gene Moore,
Esquire, City Attorney, be and he is hereby authorized and directed
to prepare and institute proceedings in the Circuit Court of the
Fifteenth Judicial Circuit of Florida, in and for Palm Beach County,
to validate and confirm the issuance of the Bonds authorized by this
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resolution and all proceedings and action taken relating thereto.
Section ~.0~. ISSUANCE AND SALE OF BONDS. That said
Bonds shall be issued and sold in such manner and at such price or
prices consistent with the terms of this resolution and the Act as
the City Council shall hereafter determine.
Section 4.05. EFFECTIVE DATE. This resolution shall take
effect upon its passage in the manner provided by law, and further,
upon the taking effect of a resolution authorizing the issuance
of $1,750,000 Water and Sewer Revenue Bonds, Issue of 1961, Series A.
(CORPORATE SEAL)
City Clerk
CITY OF BOYNTON BEACH, FLORIDA
B~ ~a~yor~')
........ C~uhcii~an