0487 Water and Sewer BondsORDINANCE NO. 487
AN ORDINANCE AUTHORIZING THE ACQUISITION AND
CONSTRUCTION OF EXTENSIONS AND-IMPROVEMENTS TO THE
WATER do SEWER SYSTEM AND THE REFUNDING OF CERTAIN
OUTSTANDING OBLIGATIONS OF THE CITY OF OKEECHOBEE,
FLORIDA; PROVIDING FOR THE ISSUANCE OF NOT EXCEED-
ING--$
-3,2jZ,,jK WATER AND SEWER REVENUE BONDS, SERIES
1983, TO FINANCE PART OF THE COST OF SUCH PROJECT
AND THE REFUNDING; PROVIDING FOR THE PAYMENT
THEREOF; PROVIDING FOR THE RIGHTS OF THE HOLDERS OF
THE BONDS; MAKING CERTAIN OTHER COVENANTS AND
AGREEMENTS IN CONNECTION THEREWITH; AMENDING
nRnTNANCE NO. 356 OF THE CITY, RELATING TO THE CITYS
OUTSTANDING WATER AND SEWER REVENUE BONDS, SERIES
1972, IN CERTAIN RESPECTS SO AS TO ENHANCE THE
MARKETABILITY OF THE BONDS; REPEALING ORDINANCE NO.
485, ENACTED ON APRIL 18, 1983, RELATING TO THE SAME
SUBJECT; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF OKEECHOBEE,
FLORIDA (the 'Issuer"):
SECTION I. AUTHORITY FOR THIS ORDINANCE. This ordinance is
adopted pursuant to the provisions of Chapter 8318, Laws of Florida, Special Acts of 1919,
as amended and supplemented, Chapter 166, Part III, Florida Statutes, and other
applicable provisions of law, and pursuant to Section 3.04(x) of Ordinance No. 356, duly
enacted by the City Council of the Issuer on February 22, 1972 (hereinafter referred to as
the "Original Ordinance"), as amended herein. These applicable provisions of law and the
Original Ordinance are hereinafter collectively referred to as the "Act".
SECTION 2. DEFINITIONS. All terms defined in the Original Ordinance
shall have the same meaning herein, unless the text otherwise expressly requires. All
terms defined herein shall have the same meaning in the Original Ordinance, which is
hereby amended by adding this Section 2 thereto in full. Words importing singular number
shall include the plural number in each case and vice versa, and words importing persons
shall include firms and corporations. The following terms shall have the following
meanings herein:
"1983 Bonds" shall mean the Water and Sewer Revenue Bonds, Series 1983,
herein authorized to be issued.
"Additional Parity Bonds" shall mean additional bonds issued by the Issuer in
compliance with the terms, conditions and limitations contained in Section 3.04(K) of the
Original Ordinance, as herein amended, which have an equal lien on the Pledged Revenues
with the 1983 Bonds and the Parity Bonds.
"Amortization Installment", with respect to any Term Bonds of a series, shall
mean an amount or amounts so designated which is or are established for the Term Bonds
of such series, provided that the aggregate principal amount of such installments or the
• aggregate principal amount of the Federal Securities, hereinafter defined, purchased with
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Rev. 5/11/83 /'t
Rev. 5/19/83
Rev. 6/2/83 _1_
such installments, as the case may be, for each maturity of Term Bonds of such series
shall equal the aggregate principal amount of each maturity of Term Bonds of such series
• delivered on original issuance.
"Annual Debt Service Requirement" as of any date of calculation and with
respect to any period, as applied to the Bonds of any series, shall mean the sum of:
(1) The amount required to pay the interest becoming due on the Bonds
of such series during such period except to the extent that such interest shall have been
provided by payments into the Sinking Fund out of bond proceeds.
(2) The amount required to pay the principal of Serial Bonds of such
series maturing in such period.
(3) The Amortization Installment for the Term Bonds of such series for
such period. In computing the Annual Debt Service Requirement for any period for Bonds
of any series, the Issuer shall assume that an amount of the Term Bonds of such series
equal to the Amortization Installment for the Term Bonds of such series for such period
will be retired by purchase or redemption in such period or that payment of such amount
of Term Bonds at maturity will be fully provided for in such period. When determining the
amount of principal of and interest on the Bonds which mature in any year, for purposes of
this Ordinance or the issuance of any Additional Parity Bonds, the stated maturity date of
Term Bonds shall be disregarded, and the Amortization Installment, if any, applicable to
Term Bonds in such year shall be deemed to mature in such year. In the event the Issuer
has purchased or entered into an agreement to purchase Federal Securities from moneys
i7 the Bond Amortization Account, then the income received or to be received on such
Federal Securities from the date of acquisition thereof to the date of maturity or earlier
redemption thereof shall be taken into consideration in calculating the payments which
will be required to be made into the Sinking Fund.
"Authorized Investments" shall mean any of the following if and to the extent
the same are at the time legal for investment of municipal funds:
(1) Direct obligations of, or obligations the principal of and interest on
which are unconditionally guaranteed by, the United States of America, including
obligations issued or held in book entry form on the books of the Department of the
Treasury of the United States;
(2) Bonds, debentures, notes, participation certificates or other evi-
dences of indebtedness issued, or the principal of and interest on which are uncondition-
&Uy guaranteed, by the Bank for Cooperatives, the Federal Intermediate Credit Bank, the
Federal Home Loan Bank System, the Export-Import Bank of the United States, the
LKL 3/25/83 #138
-2-
Federal Financing Bank, the Federal Land Banks, the Government National Mortgage
Association, the Federal National Mortgage Association, the United States Postal Service
• or any other agency or instrumentality of or corporation wholly owned by the United
States of America;
(3) New Housing Authority Bonds or Project Notes issued by public
agencies or municipalities and fully secured as to the payment of both principal and
interest by a pledge of annual contributions to be paid by the United States of America or
any agency thereof;
(4) Direct and general obligations, to the payment of which the full
faith and credit of the issuer is pledged, of any state which at the time of investment is
rated by any nationally recognized bond rating agency and assigned by such agency a
rating which denotes a security with investment characteristics at least equal to the
investment characteristics of a security presently rated by Moody's Investors Service,
Inc., as "A" or better;
(5) Bank time deposits evidenced by certificates of deposit, and
bankers' acceptances, issued by any bank, savings and loan association, trust company or
national banking association insured by the Federal Deposit Insurance Corporation, or the
Federal Savings and Loan Insurance Corporation; provided, that such deposits are secured
by obligations described in paragraphs 1, 2 or 3 of this definition;
(6) Repurchase agreements with any bank, trust company or national
banking association insured by the Federal Deposit Insurance Corporation or with any
government bond dealer recognized as a primary dealer by the Federal Reserve Bank of
New York, which agreement is fully and continuously secured by obligations described in
paragraph (1), (2) or (3) of this definition;
(7) Shares of investment companies which invest principally in United
States government securities, Government agency securities, bank money instruments,
corporate debt instruments, including commercial paper and variable amount master
demand notes, and repurchase and reverse repurchase agreements, having a maturity of no
more than two years; and
(8) Commercial paper which has received the highest investment grade
rating from two nationally recognized rating agencies.
'Bond Year" shall mean the annual period ending on a principal maturity date.
"Bonds" shall mean the Parity Bonds, the 1983 Bonds, and all Additional Parity
• Bonds hereafter issued by the Issuer.
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"Consulting Engineers" shall mean such qualified and recognized consulting
engineers, having a favorable repute for skill and experience as consulting engineers to
• facilites similar to the System, at the time retained by the Issuer to perform the acts and
carry out the duties as herein provided for such Consulting Engineers. The functions of
the Consulting Engineers hereunder may be divided between or among consulting
engineers.
'Escrow Deposit Agreement" means that certain Escrow Deposit Agreement to
be entered into by and between the Issuer and a bank or trust company to be selected and
named by the Issuer prior to the delivery of the 1983 Bonds, in substantially the form
attached hereto as Exhibit A.
"Excise Revenues" shall mean the Franchise Revenues, the Public Service Tax,
and the Guaranteed Entitlement Funds, as herein defined.
"Federal Securities" shall mean direct obligations of the United States of
America and obligations the principal of and interest on which are fully guaranteed by the
United States of America, none of which permit redemption prior to maturity at the
option of the obligor.
"Franchise Revenues" shall mean the amounts due and payable to the Issuer
under franchises granted by the Issuer, more particularly described below, as such
franchises may be renewed or extended from time to time:
1. Franchise granted to Okeairco, Inc. cable television of Okeechobee for a
community antenna television system, pursuant to an ordinance enacted on May 23, 1972;
2. Franchise granted to Florida Power do Light Company for electric light
and power facilities, pursuant to Ordinance No. 376 of the Issuer, enacted on August 5,
1975, as amended; and
3. Franchise granted to United Telephone Company of Florida for a
communications systems, pursuant to franchise agreement dated August 1, 1982.
"Government" shall mean the Farmers Home Administration of the United
States Department of Agriculture.
"Guaranteed Entitlement Funds" shall mean the revenue sharing trust funds to
be received by the Issuer pursuant to Chapter 218, Part II, Florida Statutes, as amended.
"Maximum Annual Debt Service Requirement" for any series of Bonds shall
mean, as of any particular date of calculation, the Annual Debt Service Requirement as
contemplated for the then current or any future Bond Year in which such sum is the
• greatest.
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"Parity Bonds" shall mean the Issuer's Water and Sewer Revenue Bonds, Series
1972.
• "Pledged Funds" shall mean the Net Revenues of the System, as defined in the
Original Ordinance and the Excise Revenues, as defined herein.
"Project" shall mean the acquisition and construction of extensions and
improvements to the System more particularly described in reports to the Issuer by
Broome, Van Ostran do Associates, Inc., entitled "Sanitary Sewer Master Plan", September
1972 as revised November 1982, and "Sewage Treatment Facilities and Spray Irrigation",
March 1983, as such reports may be revised or supplemented from time to time, on file
with the Issuer.
"Public Service Tax" shall mean the proceeds of a tax levied and collected by
the Issuer on the purchase of electricity, bottled gas (natural or manufactured), and local
telephone service in the territorial limits of the Issuer, pursuant to law and Ordinance No.
216, duly enacted by the Issuer on October 8, 1945, as the same may be amended or
supplemented from time to time.
"Refunded Bonds" shall mean the Issuer's outstanding Water and Sewer
Revenue Bonds, dated July 1, 1958, authorized by Resolution No. 320 of the Issuer,
adopted July 3, 1958.
"Reserve Account Requirement" shall mean the Maximum Annual Debt Service
Requirement.
"Serial Bonds" shall mean the Bonds of a series which shall be stated to mature
in annual installments.
"System" shall mean the Issuer's presently existing water and sewer system,
referred to in the Original Ordinance, together with all additions, extensions and
improvements thereto heretofore or hereafter constructed or acquired.
'Term Bonds" shall mean the Bonds of a series all of which shall be stated to
mature on one date and which shall be subject to retirement by operation of the Bond
Amortization Account.
SECTION 3. FINDINGS. It is hereby ascertained, determined and declared
that:
A. The Issuer now owns, operates and maintains the System and derives
revenues from fees, rates, rentals and other charges made and collected for the products,
services and facilities of the System.
is B. Pursuant to law and the official actions of the Issuer referred to in the
definitions herein, the Issuer derives revenues from the following sources: Franchise
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Revenues, Guaranteed Entitlement Funds and Public Service Taxes, which revenues are
not now pledged or encumbered in any manner except for payment of the Parity Bonds
• now outstanding, and, as to the cigarette tax portion of the Guaranteed Entitlement
Funds, for payment of the Refunded Bonds.
C. The Net Revenues are not now pledged or encumbered in any manner,
except for the payment of the Refunded Bonds and the Parity Bonds now outstanding.
D. It is necessary and desirable to acquire and construct the Project in
order to preserve and protect the public health, safety, and welfare of the inhabitants of
the Issuer.
E. Section 3.04(K) of the Original Ordinance provides for the issuance of
Additional Parity Bonds under the terms, limitations and conditions provided therein.
Notwithstanding the provisions of that Section, the holder of all of the Parity Bonds has
agreed that the 1983 Bonds may rank on a parity in all respects with the Parity Bonds
without compliance with the requirements of Section 3.04(K) and upon issuance of the
1983 Bonds will evidence such agreement by execution of the "Consent to the Issuance of
Additional Parity Bonds", in substantially the form attached hereto as Exhibit B.
F. The 1983 Bonds herein authorized shall rank on a parity, as to lien on and
source and security for payment from the Pledged Funds and in all other respects, with
the Parity Bonds.
G. The Issuer has previously issued the Refunded Bonds, of which the sum of
$119,000 principal amount is outstanding and unpaid.
H. The Issuer deems it advisable and in its best interest to provide for the
refunding of the Refunded Bonds. The refunding program herein described will be
advantageous to the Issuer by (1) effecting a favorable restructuring of the debt service
requirements applicable to bonded indebtedness issued to finance the projects financed by
the Refunded Bonds, (2) improving the security of the obligations issued to finance the
Project by defeasing certain prior liens on the funds to be pledged for repayment of such
obligations, (3) reducing the pledged revenue coverage requirement for the issuance of
Additional Parity Bonds, and (4) modernizing the covenants made for protection and
security of the Bondholders.
1. The estimated cost of such refunding as herein described and of the
Project is a sum in excess of $3,212,900, the actual cost to be determined prior to the
delivery of the 1983 Bonds. Such cost shall be paid from the proceeds derived from the
• sale of the 1983 Bonds, together with the proceeds of anticipated grants from the U.S.
Environmental Protection Agency and the Farmers Home Administration and, if
LKL 4/23/83 #138 • -6-
necessary, certain other funds available to the Issuer. An amount which, when invested,
together with the interest earned thereon, will be sufficient to effect the refunding will
• be deposited in an irrevocable escrow account established for the holders of the Refunded
Bonds, and invested in Federal Securities. The principal amounts of such Federal
Securities, together with the interest earnings therefrom, will be sufficient to make
timely payments of all presently outstanding principal and interest in respect to the
Refunded Bonds and
all costs associated
with the
acquisition and
management
of such
Federal Securities.
Such costs shall be
deemed
to include such
expenses as
may be
necessary, incidental and proper for the financing herein authorized.
J. The estimated Pledged Funds will be sufficient to pay all the principal of
and interest on the 1983 Bonds and the Parity Bonds, as the same become due, and to
make all required sinking fund, reserve and other payments required by this Ordinance and
the Original Ordinance.
K. The principal of and interest on the 1983 Bonds and all required sinking
fund, reserve and other payments shall be payable solely from the Pledged Funds as
provided herein on a parity with the Parity Bonds. The Issuer shall never be required to
levy ad valorem taxes on any property therein to pay the principal of and interest on the
1983 Bonds or to make any of the required sinking fund, reserve or other payments and
such Bonds shall not constitute a lien upon any property of, or in, the Issuer. The 1983
Bonds shall not constitute a general indebtedness of the Issuer within the meaning of any
constitutional or statutory provision.
L. It is deemed necessary and desirable to pledge the Pledged Funds to the
payment of the principal of and interest on the 1983 Bonds, and to modify the Original
Ordinance so as to pledge all of the Pledged Funds to secure payment of the Parity Bonds.
SECTION 4. AUTHORIZATION OF PROJECT AND REFUNDING OF RE-
FUNDED BONDS. There is hereby authorized the refunding of the Refunded Bonds in the
manner provided herein and the acquisition, installation, construction and outfitting of the
Project pursuant to the report of the Consulting Engineers, presently on file or to be filed
with the Issuer. The cost of the Refunding and of the Project in addition to the items set
forth in Section 3(I) of this Resolution and in addition to the items set forth in the plans
and specifications, may include, but need not be limited to, the acquisition of any lands,
rights-of-ways or interest therein or any other properties deemed necessary or convenient
therefor; engineering, legal and financing expenses, expenses for estimates of costs and of
It revenues; expenses for plans, specifications and surveys; the fees of fiscal agents,
LKL 3/25/83 #138 • -7-
financial advisors or consultants; initial working capital and reserves therefor; operating
costs incurred during construction; administrative expenses relating solely to the con-
struction and acquisition of the Project; the capitalization of interest on those Bonds
attributable to the cost of the Project for a reasonable period after the issuance of the
1983 Bonds; the creation and establishment of reasonable reserves for debt service; the
discount on the sale of the 1983 Bonds, if applicable; repayment of interim advances and
indebtedness; premiums for bond insurance; and such other costs and expenses as may be
necessary or incidental to the financing herein authorized and the construction and
acquisition of the Project and the placing of same in operation.
SECTION 5. ORIGINAL ORDINANCE AND ORDINANCE TO CONSTITUTE
CONTRACT. In consideration of the acceptance of the 1983 Bonds authorized to be
issued hereunder by those who shall hold the same from time to time, this Ordinance and
the Original Ordinance shall be deemed to be and shall constitute a contract between the
Issuer and such holders. The covenants and agreements herein and therein set forth to be
performed by the Issuer shall be for the equal benefit, protection and security of the legal
holders of any and all of the 1983 Bonds and the coupons, if any, attached thereto, all of
which shall be of equal rank and without preference, priority or distinction of any of the
1983 Bonds or coupons over any other thereof, except as expressly provided therein and
herein.
SECTION 6. AUTHORIZATION OF 1983 BONDS. Subject and pursuant to
the provisions hereof, bonds of the Issuer to be known as "Water and Sewer Revenue
Bonds, Series 198311, herein sometimes referred to as 111983 Bonds", are authorized to be
issued in the aggregate principal amount of not exceeding Three Million Two Hundred
Twelve Thousand Nine Hundred Dollars ($3,212,900).
SECTION 7. DESCRIPTION OF 1983 BONDS. The 1983 Bonds shall be
numbered consecutively from one upward within each installment in the order of their
maturities; shall be in such denominations; and shall, be dated, shall bear interest, payable
annually or semiannually, on January 1 and, if semiannually, on July 1 of each year, at
such rate or rates not exceeding the maximum rate fixed by the Act or other applicable
law, and shall mature on January 1 in such years and amounts as shall be determined by
resolution of the Issuer adopted prior to the delivery of each installment thereof.
The 1983 Bonds shall be issued in coupon or fully registered form or both, as
provided at the time of sale; shall be payable to bearer unless registered as hereinafter
• provided; shall be payable with respect to both principal and interest at such place or
places as shall hereafter be determined by resolution of the Issuer; shall be payable in
LKL 3/25/83 #138 • -8-
1,
lawful money of the United States of America; and shall bear interest from their date, or
such other date provided for by the Issuer, payable in accordance with and upon surrender
of the appurtenant interest coupons as they severally mature; provided that interest on
• fully registered Bonds shall be paid by check or draft mailed to the registered owner at his
address as shown on the books of the Registrar.
SECTION 8. EXECUTION OF 1983 BONDS AND COUPONS. The 1983 Bonds
shall be executed in the name of the Issuer by its Mayor, countersigned by its City
Administrator, and attested by its City Clerk, and its corporate seal or a facsimile
thereof shall be affixed thereto or reproduced thereon. The facsimile signatures of said
officers may be imprinted or reproduced on the 1983 Bonds, provided that at least one
signature required to be placed thereon shall be manually subscribed, if required by law.
In case any officer whose signature shall appear on any of the 1983 Bonds shall,cease to be
such officer before the delivery of such 1983 Bonds, such signature or facsimile shall
nevertheless be valid and sufficient for all purposes the same as if he had remained in
office until such delivery. The 1983 Bonds may be signed and sealed on behalf of the
Issuer by such person who at the actual time of the execution of such 1983 Bonds shall
hold the proper office with the Issuer, although at the date of such 1983 Bonds such person
may not have held such office or may not have been so authorized.
The coupons attached to the coupon 1983 Bonds shall be executed with the
facsimile signature of any present or future Mayor, countersigned with the facsimile
signature of any present or future City Administrator, and attested by the facsimile
signature of any present or future City Clerk, and may be sealed by having imprinted
thereon the word "Seal". The validation certificate on the 1983 Bonds shall be executed
with the facsimile signature of any present or future Mayor. The Issuer may adopt and
use for such purposes the facsimile signature of any person who shall have held such office
at any time on or after the date of the 1983 Bonds notwithstanding that he may have
ceased to be such officer at the time such 1983 Bonds shall be actually delivered.
SECTION 9. NEGOTIABILITY AND REGISTRATION.
A. The 1983 Bonds shall have such attributes of negotiability as are
provided for under the Uniform Commercial Code - Investment Securities of the State of
Florida.
B. The coupon 1983 Bonds may be registered at the option of the holder as
to principal only on the books of the Issuer at the office of the City Clerk, as Registrar,
or such other Registrar as may hereafter be duly appointed, such registration to be noted
• on the back of the coupon 1983 Bonds in the space provided therefor. After such
registration as to principal only no transfer of the coupon 1983 Bonds shall be valid unless
made at such office by written assignment of the registered owner, or by his duly
LKL 5/11/83 #138 -9-
authorized agent or representative and similarly noted on the coupon 1983 Bonds, but the
coupon 1983 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 coupon 1983 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.
C. The Issuer shall cause books for the registration and the transfer of the
fully registered 1983 Bonds to be kept by the Registrar. Upon surrender for transfer of
any fully registered 1983 Bond at such office, the Registrar shall deliver in the name of
the transferee or transferees a new fully registered 1983 Bond or Bonds of authorized
denominations of the same maturity for the aggregate principal amount which the
registered owner is entitled to receive.
D. Any fully registered 1983 Bond or Bonds shall be exchangeable for a fully
registered 1983 Bond or Bonds of the same maturity and interest rate, in any authorized
denomination, but in a principal amount equal to the unpaid principal amount of the 1983
Bond or Bonds presented for exchange. Bonds to be exchanged shall be surrendered at the
principal office of the Registrar, and the Registrar shall deliver in exchange therefor the
1983 Bond or Bonds which the Bondholder making the exchange shall be entitled to
receive. All fully registered 1983 Bonds delivered upon transfer or exchange shall bear
interest from such date that neither gain nor loss in interest shall result from the transfer
or exchange.
E. All 1983 Bonds presented for transfer, exchange, redemption or payment
(if so required by the Issuer), shall be accompanied by a written instrument or instruments
of transfer or authorization for exchange, in form and with guaranty of signature satis-
factory to the Issuer, duly executed by the registered holder or by his duly authorized
attorney.
F. The Issuer may charge the Bondholders a sum sufficient to reimburse the
Issuer for any expenses incurred in making any exchange or transfer of 1983 Bonds, and
the Issuer may require payment from the Bondholder of a sum sufficient to cover any tax,
fee or other governmental charge that may be imposed in relation thereto. Such charges
and expenses shall be paid before any such new 1983 Bond shall be delivered.
G. The Registrar shall not be required (i) to transfer or exchange any 1983
Bonds during a period beginning at the opening of business on the 15th business day next
• preceding either any interest payment date or any -late of selection of 1983 Bonds to be
redeemed and ending at the close of business on the interest payment date or day on
LKL 4/23/83 #138 • -10-
which the applicable notice of redemption is given or (ii) to transfer or exchange any 1983
Bonds selected, called or being called for redemption in whole or in part.
• H. New 1983 Bonds delivered upon any transfer or exchange shall be valid
limited obligations, evidencing the same debt as the 1983 Bonds surrendered, shall be
secured by this Ordinance and shall be entitled to all of the security and benefits hereof
to the same extent as the 1983 Bonds surrendered.
1. The person in whose name is registered any coupon 1983 Bond registered
as to principal or any fully registered 1983 Bond may be deemed the owner thereof by the
Issuer, and any notice to the contrary shall not be binding upon the Issuer.
SECTION 10. BONDS MUTILATED, DESTROYED, STOLEN OR LOST. In
case any 1983 Bond shall become mutilated, or be destroyed, stolen or lost, the Issuer may
in its discretion issue and deliver a new 1983 Bond with all unmatured coupons attached, if
any, of like tenor as the 1983 Bond and attached coupons, if any, so mutilated, destroyed,
stolen or lost, in exchange and substitution for such mutilated 1983 Bond, upon surrender
and cancellation or such mutilated 1983 Bond and attached coupons, if any, destroyed,
stolen or lost, and upon the holder furnishing the Issuer proof of his ownership thereof and
satisfactory indemnity and complying with such other reasonable regulations and condi-
tions as the Issuer may prescribe and paying such expenses as the Issuer may incur. All
1983 Bonds and coupons so surrendered shall be cancelled. If any such 1983 Bond or
coupon shall have matured or be about to mature, instead of issuing a substitute 1983
Bond or coupon, the Issuer may pay the same, upon being indemnified as aforesaid, and if
such 1983 Bond or coupon be lost, stolen or destroyed, without surrender thereof.
All such duplicate 1983 Bonds and coupons issued pursuant to this section shall
constitute original, additional contractual obligations on the part of the Issuer whether or
not the lost, stolen or destroyed 1983 Bonds or coupons be at any time found by anyone,
and such duplicate 1983 Bonds and coupons shall be entitled to equal and proportionate
benefits and rights as to lien on and source and security for payment from the funds, as
hereinafter pledged, to the same extent as all other 1983 Bonds and coupons issued
hereunder.
SECTION 11. PROVISIONS FOR REDEMPTION. The 1983 Bonds of each
installment shall be subject to mandatory redemption by operation of the Bond Amortiza-
tion Account or at the option of the Issuer, as provided by subsequent resolution of the
Issuer adopted at or prior to the sale of such installment of the 1983 Bonds.
• Notice of redemption of 1983 Bonds to be redeemed shall be given not less
than thirty days prior to the redemption date by first ciasb .►.ail prepaid) to banks
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I
or trust companies serving as paying agents and to owners of fully registered bonds and
coupon bonds registered as to principal (other than to bearer), and, if any coupon 1983
Bonds not registered as to principal (or registered to bearer) are outstanding, by
publication at least once not less than thirty days prior to such redemption date in a
financial newspaper or journal of general circulation published in the City of New York,
New York. Upon giving of such notice and the deposit with the paying agent of sufficient
funds to pay the principal of the 1983 Bonds to be redeemed, plus interest accrued to the
redemption date, plus any applicable redemption premium, interest on the 1983 Bonds so
redeemed shall cease to accrue after the date fixed for redemption.
SECTION 12. FORM OF 1983 BONDS AND COUPONS. The 1983 Bonds, the
interest coupons to be attached thereto, and the certificate of validation shall be in
substantially the following form, with such omissions, insertions and variations as may be
necessary and desirable and which are herein authorized or permitted or which are
subsequently authorized or permitted prior to the issuance of the 1983 Bonds:
LKL 3/25/83 #138 -12-
(FORM OF COUPON BONDS)
No.
UNITED STATES OF AMERICA
STATE OF FLORIDA
CITY OF OKEECHOBEE
WATER AND SEWER REVENUE BOND, SERIES 1983
$5,000
KNOW ALL MEN BY THESE PRESENTS, that the City of Okeechobee,
Florida, a municipal corporation created and existing under and by virtue of the laws of
the State of Florida (hereinafter called "City"), for value received, hereby promises to pay
to the order of the bearer or, if this Bond be registered, the registered holder as herein
provided, upon presentation and surrender hereof, on the first day of January, ,
from the special funds hereinafter mentioned, the principal sum of
DOLLARS
and to pay solely from such special funds, interest thereon from the date hereof, at the
rate of per centum ( per annum until payment of the principal sum, such
interest to the maturity hereof being payable on 198_, and semiannually
thereafter on January 1 and July 1 of 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 $3,212,900 of like tenor and effect, except as to date, number, installment,
interest rate, redemption and date of maturity, issued to finance a part of the cost of the
acquisition and construction of extensions and improvements to the water and sewer
facilities of the combined municipal water and sewer system (the "System") of the City
(hereinafter called "Project") and to refund the City's outstanding Water and Sewer
Revenue Bonds, dated July 1, 1958, under the authority of and in full compliance with the
Constitution and Statutes of the State of Florida, including particularly Chapter 8318,
Laws of Florida, Special Acts of 1919, as amended. and supplemented, Chapter 166, Part
Tn. Florida Statutes, and other applicable provisions of law, and Ordinance No. 356, of the
City, duly enacted on February 22, 1972, as amended and supplemented and particularly as
supplemented by Ordinance No. duly enacted by the City on , 1983,
as supplemented (hereinafter collectively called "Ordinance"), and is subject to all the
• terms and conditions of such Ordinance.
LKL 3/25/83 #138 -13-
This Bond and the coupons appertaining thereto are payable solely from and
secured by a lien upon and pledge of (1) the net revenues derived from the operation of
. the System, (2) the proceeds derived by the City from its public service tax levied and
collected pursuant to Ordinance No. 216, duly enacted by the City on October 8, 1945, as
amended or supplemented from time to time, on every purchase of electricity, bottled
gas (natural or manufactured), and local telephone service within the corporate limits of
the City (the "Public Service Tax"), (3) the amounts due and payable to the Issuer under
franchises granted by the Issuer, more particularly described below, as such franchises
may be renewed or extended from time to time (the "Franchise Revenues"), and (4) the
revenue sharing trust funds received by the City pursuant to Chapter 218, Part II, Florida
Statutes, as amended (the "Guaranteed Entitlement Funds"), all in the manner provided in
the Ordinance (such Net Revenues, Public Service Tax, Franchise Revenues and
Guaranteed Entitlement Funds hereinafter collectively called the "Pledged Funds"). The
pledge of and lien on the Pledged Funds will rank on a parity with the pledge of and lien
on the Pledged Funds to secure payment of the City's outstanding Water and Sewer
Revenue Bonds, Series 1972 (hereinafter called the "Parity Bonds").
(Insert Redemption Provisions)
Notice of such redemption shall be given in the manner required by the
Ordinance.
This Bond does not constitute a general indebtedness of the City within the
meaning of any constitutional or statutory provision or limitation, and it is expressly
agreed by the holder of this Bond and the coupons appertaining hereto that such holder
shall never have the right to require or compel the exercise of the ad valorem taxing
power of the City for the payment of the principal of and interest on this Bond or the
making of any sinking fund, reserve or other payments provided for in the Ordinance.
It is further agreed between the City and the holder of this Bond that this
Bond and the obligation evidenced thereby shall not constitute a lien upon the System, or
any part thereof, or on any other property of or in the City, but shall constitute a lien
only on the Pledged Funds, in the manner provided in the Ordinance.
In and by the Ordinance, the City has covenanted and agreed with the holders
of the Bonds that it will maintain and collect such schedule of water and sewer rates and
charges for the use of the product, services and facilities of the System which, together
with the proceeds of the Public Service Tax, Franchise Revenues and Guaranteed
. Entitlement Funds, will produce Net Revenues each fiscal year sufficient to provide for
125% of the Annual Debt Service Requirement for such years on the outstanding rarity
LKL 4/23/83 #138 • -14-
Bonds and the Bonds, and any outstanding additional Parity Bonds, and 100% of all other
payments provided for in the Ordinance, and that such water and sewer rates, and charges
• shall always be revised so as to be sufficient to provide funds for such purposes.
The City, in and by the Ordinance, has covenanted that it will not repeal the
Ordinance now in effect levying the Public Service Tax and will not amend or modify said
Oridnance in any manner so as to impair or adversely affect the power and obligation of
the City to levy and collect the Public Service Tax as presently in effect or to impair or
adversely affect in any manner the pledge of the proceeds of the Public Service Tax made
in the Ordinance or the rights of the holders of the Bonds.
The City, in and by the Ordinance, further covenants that it will not repeal,
emend or modify the Ordinances or agreements pursuant to which the franchise revenues
are to be collected and received in any manner so as to reduce or impair, or adversely
affect, the undertaking of the City to apply the franchise revenues as provided in the
Ordinance.
The City, in and by the Ordinance, further covenants that it will not take any
action which will jeopardize the receipt of the Guaranteed Entitlement Trust Funds in any
way e.s to reduce or impair, or adversely affect, the undertaking of the City to apply the
Guranteed Entitlement Trust Funds as provided in the Ordinance.
It is hereby certified and recited that all acts, conditions and things required
to exist, to happen and to be performed precedent to and in the issuance of this 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 the Bonds of this issue does not violate any constitutional or statutory
limitations or provisions.
This Bond and the coupons appertaining hereto are and have such attributes of
negotiability as are provided for investment securities under the Uniform Commercial
Code - Investment Securities of the State of Florida.
This Bond may be registered as to principal only in accordance with the
provisions endorsed hereon.
IN WITNESS WHEREOF, the City of Okeechobee, Florida, has issued this Bond
and has caused the same to be signed by its Mayor, countersigned by its City
Administrator, and attested by its City Clerk, either manually or with their facsimile
signatures, at least one such signature being manual, and the corporate seal of the City or
• a facsimile thereof to be affixed, impressed, imprinted, lithographed or reproduced hereon
and the interest coupons hereto attached to be executed by the facsimile signatures of
such officers, all as of the first day of , 1983.
LKL 5/11/83 #138 .-15-
CITY OF OKEECHOBEE, FLORIDA
(SEAL)
•
ATTEST: Mayor
Countersigned:
City Clerk
City Administrator
(Form of Coupon)
No.
S
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, on the
1st day of , 19 , the City of Okeechobee, Florida, will pay to the bearer
at , solely from the special funds described in the Bond to
which this coupon is attached, the amount shown hereon in lawful money of the United
States of America, upon presentation and surrender of this coupon, being interest then due
on its Water and Sewer Revenue Bond, Series 1983, dated , 1983, No.
CITY OF OKEECHOBEE, FLORIDA
(SEAL)
Mayor
ATTEST:
Countersigned:
City Clerk
City Administrator
VALIDATION STATEMENT
This Bond is one of a series of Bonds which were validated by judgment of the
Circuit Court for Okeechobee County, Florida, rendered on , 1983.
Mayor, City o Okeechobee, Florida
PROVISION FOR REGISTRATION
This Bond may be registered in the name of the holder on the books to be kept
• by the City Clerk of the City, as Registrar, or such other Registrar as may hereafter be
duly appointed, as to principal only, such registration being noted hereon by such
LKL 5/11/83 #138 -16-
Registrar in the registration blank below, after which no transfer shall be valid unless
made on the books by the registered holder or attorney duly authorized and similarly
• noted in the registration blank below, but it may be discharged from registration by being
registered 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.
Date of In Whose Name Signature of
Registration Registered Registrar
LKL 3/25/83 #138 -17-
I 1' ,
(FORM OF REGISTERED BONDS)
No.
UNITED STATES OF AMERICA
STATE OF FLORIDA
CITY OF OKEECHOBEE
WATER AND SEWER REVENUE BOND, SERIES 1983
KNOW ALL MEN BY THESE PRESENTS, that the City of Okeechobee,
Florida, a municipal corporation created and existing under and by virtue of the laws of
the State of Florida (hereinafter called "City"), for value received, hereby promises to pay
to the order of
, on the first day of January , from the special funds
hereinafter mentioned, the principal sum of
DOLLARS
and to pay solely from such special funds, interest to the maturity hereof from
at the rate of per centum ( per annum until
payment of the principal sum, such interest being payable on _198_, and
(annually or semiannually) thereafter on January 1 (and July 1, if semiannual) of each year
by check or draft mailed to the registered owner. Both principal of and interest on this
Bond are payable in lawful money of the United States of America. The principal of this
Bond shall be payable upon presentation and surrender 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 $3,212,900 of like tenor and effect, except as to date, number, installment,
interest rate, redemption and date of maturity, issued to finance a part of the cost of the
acquisition and construction of extensions and improvements to the water and sewer
facilities of the combined municipal water and sewer system (the "System") of the City
(hereinafter called "Project") and to refund the City's outstanding Water and Sewer
Revenue Bonds, dated July 1, 1958, under the authority of and in full compliance with the
Constitution and Statutes of the State of Florida, including particularly Chapter 8318,
T.oF•c of Florida, Special Acts of 1919, as amended and supplemented, Chapter 166, Part
III, Florida Statutes, and other applicable provisions of law, and Ordinance No. 356, of the
City, duly enacted on February 22, 1972, as amended and supplemented and particularly as
supplemented by Ordinance No. duly enacted by the City on , 1983,
• as supplemented (hereinafter collectively called "Ordinance"), and is subject to all the
t--ns ano' -orrf:tions of such Ordinance.
LKL 3/25/83 #138 -18-
I
This Bond is payable solely from and secured by a lien upon and pledge of (1)
the net revenues derived from the operation of the System (the "Net Revenues"), (2) the
• proceeds derived by the City from its public service tax levied and collected pursuant to
Ordinance No. 216, duly enacted by the City on October 8, 1945, as amended or
supplemented from time to time, on every purchase of electricity, bottled gas (natural or
manufactured), and local telephone service within the corporate limits of the City (the
"Public Service Tax"), (3) the amounts due and payable to the Issuer under franchises
granted by the Issuer, more particularly described below, as such franchises may be
renewed or extended from time to time (the "Franchise Revenues"), and (4) the revenue
sharing trust funds derived by the City pursuant to Chapter 218, Florida Statutes (the
"Guaranteed Entitlement Funds"), all in the manner provided in the Ordinance (such Net
Revenues, Public Service Tax, Franchise Fees and Guaranteed Entitlement Funds herein-
after collectively called the "Pledged Funds"). The pledge of and lien on the Pledged
Funds will rank on a parity with the pledge of and lien on the Pledged Funds to secure
payment of the City's outstanding Water and Sewer Revenue Bonds, Series 1972
(hereinafter called the "Parity Bonds").
(Insert Redemption Provisions)
Notice of such redemption shall be given in the manner required by the
Ordinance.
This Bond does not constitute a general indebtedness of the City within the
meaning of any constitutional or statutory 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 the City for the payment of the principal of and interest on this Bond or the
making of any sinking fund, reserve or other payments provided for in the Ordinance.
It is further agreed between the City and the holder of this Bond that this
Bond and the obligation evidenced thereby shall not constitute a lien upon the System, or
any part thereof, or on any other property of or in the City, but shall constitute a lien
only on the Pledged Funds, in the manner provided in the Ordinance.
In and by the Ordinance, the City has covenanted and agreed with the holders
of the Bonds that it will maintain and collect such schedule of water and sewer rates and
charges for the use of the product, services and facilities of the System which together
with the proceeds of the Public Service Tax, Franchise Revenues and Guaranteed
• Entitlement Funds, will produce Net Revenues in each fiscal year sufficient to provide
125% of the Annual Debt Service Requirement for such year on the outstanding Parity
LKL 3/25/83 #138 -19-
Bonds and the Bonds and any outstanding Additional Parity Bonds, and 100% of all other
payments provided for in the Ordinance, and that such water and sewer rates and charges
• shall always be revised so as to be sufficient to provide funds for such purposes
The City, in and by the Ordinance, has covenanted that it will not repeal the
Ordinance now in effect levying the Public Service Tax and will not amend or modify said
Oridnance in any manner so as to impair or adversely affect the power and obligation of
the City to levy and collect the Public Service Tax as presently in effect or to impair or
adversely affect in any manner the pledge of the proceeds of the Public Service Tax made
in the Ordinance or the rights of the holders of the Bonds.
The City, in and by the Ordinance, further covenants that it will not repeal,
amend or modify the Ordinances or agreements pursuant to which the franchise revenues
are to be collected and received in any manner so as to reduce or impair, or adversely
affect, the undertaking of the City to apply the franchise revenues as provided in the
Ordinance.
The City, in and by the Ordinance, further covenants that it will not take any
action which will jeopardize the receipt of the Guaranteed Entitlement Trust Funds in any
way as to reduce or impair, or adversely affect, the undertaking of the City to apply the
Guranteed Entitlement Trust Funds as provided in the Ordinance.
It is hereby certified and recited that all acts, conditions and things required
to exist, to happen and to be performed precedent to and in the issuance of this 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 the Bonds of this issue does not violate any constitutional or statutory
limitations or provisions.
This Bond is and has such attributes of negotiability as are provided for
investment securities under the Uniform Commercial Code - Investment Securities of the
State of Florida.
This Bond is transferable by the registered holder hereof in person or by his
attorney duly authorized in writing, at the principal office of the City Clerk as Registrar,
but only in the manner, subject to the limitations and upon payment of the charges
provided in the Ordinance, and upon surrender and cancellation of this Bond. Upon such
transfer a new registered Bond or Bonds of the same maturity or maturities and of
authorized denomination or denominations, for the same aggregate principal amount, will
• be issued to the transferee in exchange therefor.
LKL 4/23/83 #138 • -20-
The Issuer may deem and treat the registered holder hereof as the absolute
owner hereof (whether or not this Bond shall be overdue) for the purpose of receiving
• payment of or on account of principal hereof and interest due hereon and for all other
purposes, and the Issuer shall not be affected by any notice to the contrary.
Upon payment of the transfer charge and any required tax, fee or other
governmental charge, as specified in the Ordinance, and upon the surrender thereof at the
principal office of the Registrar with a written instrument of transfer, in form and with
guarantee of signature satisfactory to the Registrar, duly executed by the registered
owner or his duly authorized attorney, registered Bonds may, at the option of the
registered owner thereof, be exchanged for an equal aggregate principal amount of
registered Bonds without coupons of the same maturity and interest rate and of any other
authorized denomination.
The Issuer shall not be required (a) to transfer or exchange any Bonds during a
period beginning at the opening of business on the 15th business day next preceding either
any interest payment date or any date of selection of Bonds to be redeemed and ending at
the close of business on the interest payment date or day on which the applicable notice
of redemption is given or (b) to transfer or exchange any Bonds selected, called or being
called for redemption in whole or in part.
IN WITNESS WHEREOF, the City of Okeechobee, Florida, has issued this Bond
and has caused the same to be signed by its Mayor, countersigned by its City
Administrator, and attested by its City Clerk, either manually or with their facsimile
signatures, and the corporate seal of the City or a facsimile thereof to be affixed,
impressed, imprinted, lithographed or reproduced hereon, all as of the first day of
1983.
CITY OF OKEECHOBEE, FLORIDA
(SEAL)
ATTEST:
Mayor
Countersigned:
City Clerk
City Administrator
LKL 5/11/83 #138 - -21-
.1 11.
PROVISIONS FOR ASSIGNMENT
• For value received, the undersigned sells, assigns and transfers unto
the within Bond and
all rights thereunder, and hereby irrevocably constitutes and appoints
attorney to transfer the within Bond on the books kept for registration thereof, with full
power of substitution in the premises.
Dated:
LKL 3/25/83 #138 . -22-
SECTION 13. APPLICATION OF , .PROVISIONS OF THE ORIGINAL
ORDINANCE.
A. The 1983 Bonds shall for all purposes be considered to be Additional Parity
• Bonds issued under the authority of the Original Ordinance, and shall be entitled to all the
protection and security provided therein for the Parity Bonds, and shall be in all respects
entitled to the same security, rights and privileges enjoyed by the Parity Bonds.
The 1983 Bonds, and the coupons representing interest on the 1983 Bonds
issued in coupon form, shall not be or constitute an indebtedness of the Issuer within the
meaning of any constitutional or statutory limitation of indebtedness, but shall be payable
solely from and secured by a lien upon and pledge of the Pledged Funds. No holder of any
of the 1983 Bonds or of the coupons, if any, appurtenant thereto shall ever have the right
to require or compel the exercise of the ad valorem taxing power of the Issuer for
payment of the principal of and interest on the 1983 Bonds or the making of any sinking
fund, reserve, or other payments provided for in this Ordinance. The 1983 Bonds and the
obligation evidenced thereby shall not constitute a lien upon the System, or any part
thereof, or on any property of or in the Issuer, but shall constitute a lien only on the
Pledged Funds, in the manner provided herein.
B. The covenants and pledges contained in the . Original Ordinance' as
amended by this Ordinance, shall be applicable to the 1983 Bonds herein authorized in like
manner as applicable to the Parity Bonds, and the Revenue Fund, the Operation and
Maintenance Fund, the Sinking Fund and the Reserve Account therein, shall be continued
and maintained as long as any of the 1983 Bonds issued hereunder and interest thereon are
outstanding and unpaid. The principal of (including Amortization Installments, if any),
interest on and redemption premiums, if any, on the 1983 Bonds herein authorized shall be
payable from the Sinking Fund heretofore established on a parity with the Parity Bonds,
and payments shall be made into such Sinking Fund by the Issuer from the Revenue Fund
in amounts fully sufficient to pay the principal of (including Amortization Installments, if
any), and interest on the Parity Bonds and on the 1983 Bonds herein authorized as such
principal, Amortization Installments, if any, and interest become due. In accordance with
the provisions of the Original Ordinance whenever by reason of the insufficiency of
moneys on deposit in the Revenue Fund the Issuer is not able to make promptly the
current monthly payments required to be made pursuant to the provisions of Section 6 of
the Original Resolution and pursuant to this Section 13, there shall be paid into the
Revenue Fund whatever sums are necessary to cure such existing deficit, first from the
• proceeds of the Public Service Tax, second from the proceeds of the Franchise Revenues
and third from the Guaranteed Entitlement Funds.
LKL 3/25/83 #138
-23-
'1
C. The amount of the reserve provided for in Section 5(b), Water and Sewer
Revenue Bonds Sinking Fund, of the Original Resolution shall be applicable pro rata to the
• 1983 Bonds in the same manner as applicable to the Parity Bonds, and the amounts set
aside for such reserve shall be increased proportionately to provide a reserve equal to the
maximum amount of principal and interest becoming due in any succeeding calendar year
for account of all Bonds Outstanding, as provided in the Original Resolution.
D. The Issuer hereby covenants and represents that the Franchise Revenues
are and will continue to be available to the payment of the Annual Debt Service
Requirements on the Bonds. From and after the issuance of any of the 1983 Bonds, and so
long as any Bonds remain outstanding, there shall be paid into the Sinking Fund each
month from the Franchise Revenues received during the current Bond Year all or such
portion thereof as will be equal to the amount, if any, of the deficiency in the Net
Revenues and the proceeds of the Public Service Tax, to make the prescribed monthly
payments into the Sinking Fund and according to the provisions of this paragraph D, and
all of the Franchise Revenues are pledged for that purpose. The Issuer hereby covenants
ind agrees that so long as any of the Bonds are outstanding it will not repeal, amend or
modify the ordinances or agreements pursuant to which the Franchise Revenues are to be
collected and received in any manner as to reduce or impair, or adversely affect, the
undertaking of the Issuer to apply the Franchise Revenues as hereinabove provided.
E. The Issuer hereby covenants and represents that the Guaranteed Entitle-
ment Funds are and will continue to be available to the payment of the principal and
interest on the Bonds. From and after the issuance of any of the 1983 Bonds, and so long
as any Bonds remain outstanding, there shall be paid into the Sinking Fund each month
from the Guaranteed Entitlement Funds received during the current Bond Year all or such
portion thereof as will be equal to the amount, if any, of the deficienty in the Net
Revenues and the proceeds of the Public Service Tax and the Franchise Revenues, to
make the prescribed monthly payments into the Sinking Fund and according to the
provisions of this paragraph E, and all of the Guaranteed Entitlement Funds are pledged
for that purpose. The Issuer hereby covenants and agrees that so long as any of the Bonds
are outstanding it will not take any action which will jeopardize the receipt of the
Guaranteed Entitlement Funds in any way as to reduce or impair, or adversely affect, the
undertaking of the Issuer to apply the Guaranteed Entitlement Funds as hereinabove
provided.
F. Upon the sale of any Term Bonds of any series of 1983 Bonds, the Issuer
shall, by resolution, establish the amounts and maturities of the Amortization installments
for such Term Bonds. Notwithstanding anything in paragraph B of this Section to the
LKL 4/23/83 #138 -24
contrary, there is hereby established a special account within the Sinking Fund designated
the 1983 Bond Amortization Account (the "Bond Amortization Account"). On a parity
• with other required deposits for payment of maturing principal on the Parity Bonds and on
the 1983 Bonds, Pledged Funds shall be deposited into the Bond Amortization Account if
and to the extent required, in such sum as will be equal to one-sixth (1/6) or one-twelth
(1/12) of the amount of the Amortization Installment which shall next become due and
payable semiannually or annually, respectively. Credit shall be allowed against the total
interest, Amortization Installment and principal due on the next interest and principal
payment dates, respectively, for any other funds on hand and available for such purpose in
the Sinking Fund for such period. Monies held for the credit of the Bond Amortization
Account shall be applied to the retirement of Term Bonds as follows:
(1) Subject to the provisions of paragraphs (2) and (3) below, the Issuer
shall endeavor to purchase Term Bonds then outstanding, at the most advantageous price
obtainable with reasonable diligence, such price not to exceed the principal of such Term
Bonds and the redemption premium which would be applicable if the moneys applied to
such purchase were otherwise applied to the redemption of Term Bonds under paragraph
(2) below. The Issuer shall pay the interest accrued on s►ich Term Bonds to the date of
delivery thereof from the Sinking Fund and the purchase price from the Bond Amortiza-
.ion Account, but no such purchase shall be made by the Issuer within the period of
forty-five (45) days immediately preceding any interest payment date on which such Term
Bonds are subject to call for redemption except from moneys in excess of the amounts set
aside or deposited for the redemption of Term Bonds.
(2) Subject to the election provided for in paragraph (3) below, moneys
in the Bond Amortization Account shall be applied by the Issuer in each Bond Year to the
retirement by mandatory redemption of Term Bonds then outstanding to the extent of the
mandatory redemption requirement, if any, for such Bond Year for the Term Bonds of
each such series then outstanding; provided, however, that if the Term Bonds of any series
shall not then be subject to mandatory redemption from moneys in the Bond Amortization
Account and if the Issuer shall at any time be unable to exhaust the moneys applicable to
the Term Bonds of such series under the provisions of this clause in the purchase of such
Term Bonds under the provisions of paragraph (1) above, such moneys or the balance of
such moneys, as the case may be, shall be retained in the Bond Amortization Account and,
as soon as it is feasible, applied to the retirement of Term Bonds of such series.
• (3) In lieu of purchasing or redeeming Term Bonds immediately upon
deposit of Amortization Installments into the Bond Amortization Account' wider Tara-
LKL 3/25/83 #138 . -25-
i
graphs (1) or (2) hereof, the Issuer may elect to retain the funds deposited into the Bond
Amortization Account, or any portion thereof, until a stated maturity or mandatory
redemption date of such Term Bonds of a series and invest such funds in the manner
• provided by this Resolution
provided such investments mature not later than such stated
maturity or mandatory redemption date of such Term Bonds. Such election shall be made,
as to all or a part of the Term Bonds of a series, at the time of sale of such Term Bonds,
in which case such election shall be binding on the Issuer; provided, however, that if an
election is made to retain the funds in the Bond Amortization Account until stated
maturity or mandatory redemption dates of such Term Bonds of any series, such Term
Bonds may nevertheless be subject to redemption prior to maturity at the option of the
Issuer on such terms and conditions as are fixed by resolution of the Issuer at the time of
the sale of the Bonds of such series.
(4) The Issuer shall deposit into the Bond Amortization Account
Amortization Installments for the amortization of the principal of the Term Bonds of a
series, together with any deficiencies for prior required deposits into the Bond Amorti-
zation Account, such Amortization Installments to be in such amounts (or calculable
amounts) and to be due on such date or dates and in such years as shall be determined by
resolution of the governing body of the Issuer at or prior to the sale of the Bonds of such
series. After all other required payments have been made, the Issuer shall pay from
the Sinking Fund all expenses in connection with any such purchase or redemption.
The funds and principal of investments constituting each Amortization Install-
ment in the Bond Amortization Account shall be applied exclusively for payment of Ter
m
Bonds of each respective series for which such Amortization Installment was deposited
into the Bond Amortization Account b by purchase, redemption or payment at maturity, as
applicable, and shall not be available for payment, purchase or redemption of Term B
onn
of any other series or for transfer to the Sinking Fund to make up any deficiencies in
required payments therein.
SECTION 14. APPLICATION OF PROCEEDS OF 1983 BONDS,
received from the sale of the 1983 Bonds shall be applied by the Issuer as All moneys
follows:
A. All accrued interest to the date of delivery plus, at the option of the
Issuer, an additional amount sufficient to pay all or a portion of the interest to accrue
the 1983 Bonds attributable to the Project through the estimated date of completion on
the Project (as determined by the Consulting Engineer) and for not more than one on of
. thereafter, shall be deposited in the Sinking Fund and year
shall be used only for the purk,"Se
paying interest becoming due on the 1983 Bonds.
LKL 3/25/83 #138 -26-
B. A sum of not exceeding Three Hundred Thirty Five Thousand Two
Hundred Sixty Dollars ($335,260.00) may, at the option of the Issuer, be deposited in the
• Reserve Account.
C. To the extent not paid or reimbursed therefor by the original purchaser
of the 1983 Bonds,
the
Issuer
shall next pay all engineering fees,
legal
fees, fees of
financial advisors,
cost
of the
issuance of the 1983 Bonds, and all
other
similar costs
incurred in connection with the preparation, issuance, and sale of the 1983 Bonds.
D. A sum specified in the Escrow Deposit Agreement which, when invested
in Federal Securities, the income earned thereon and the other funds described in the
Escrow Deposit Agreement to be deposited in escrow, will be sufficient to pay, as of any
date of calculation, the principal of and premium, if any, and interest on the Refunded
Bonds as the same shall become due or are redeemed as provided by subsequent resolution
of the Issuer, whichever is earlier, shall be deposited into the Escrow Account established
in the Escrow Deposit Agreement.
Simultaneously with the delivery of the 1983 Bonds or the first installment
thereof to the original purchaser thereof, the Issuer shall enter ,into the Escrow Deposit
Agreement in substantially the form attached hereto as Exhibit A with a bank or trust
company approved by the Issuer, which shall provide for the deposit of sums into the
Escrow Account and for the investment of such monies in appropriate Federal Securities ,
so as to produce sufficient funds to make all of the payments described in this section. At
the time of execution of the Escrow Deposit Agreement, the Issuer shall furnish to the
Escrow Holder named therein appropriate documentation to demonstrate that the sums
being deposited and the investments to be made will be sufficient for such purposes.
Such funds shall be kept accounted for separately from all other accounts of
the Issuer, and the monies on deposit therein shall be withdrawn, used and applied by the
Escrow Holder solely for the purposes set forth herein and in the Escrow Deposit
Agreement. All such funds shall be and constitute trust funds for such purposes and there
is hereby created a lien in favor of the holders of the Refunded Bonds upon such money
until so applied.
E. The balance of the monies remaining after making all the deposits and
payments provided for in paragraphs A through D, inclusive, above shall be paid into a
separate fund to be designated Water and Sewer Revenue Bonds, Series 1983 Construction
Fun ' (herein called "Construction Fund"), hereby created and established, shall be
. withdrawn, used and applied by the Issuer solely to the payment of the cost of the Project
LKL 4/23/83 #138 • -27-
1
and purposes incidental thereto, as hereinabove described and set forth. All proceeds of
any federal grants received from the U.S. Environmental Protection Agency and the
• Farmers Home Administration for partial financing of the Project, and all other funds, if
any, from other sources intended to be used for costs of the Project shall be deposited
upon receipt into the Construction Fund.
Any funds on deposit in the Construction Fund may be invested and reinvested
in Authorized Investments maturing at such times as the moneys in this Fund will be
needed for their intended purposes. All such securities shall be held by the depository
bank, and all income derived therefrom shall be deposited in the Construction Fund until
the Project has been completed, at which time said income together with any balance
remaining in the Construction Fund shall be deposited in the Sinking Fund, and the
Construction Fund shall be closed.
All expenditures or disbursements from the Construction Fund (except dis-
bursements to provide for retirement of any notes issued in anticipation of the 1983 Bonds
for temporary financing of the Project) shall be made only after such expenditures or
disbursements shall have been approved in writing by the Consulting Engineer. The date
of completion of the applicable portion of the Project shall be determined by the
Consulting Engineer, who shall certify such fact in writing to the Issuer. All such
proceeds shall be and constitute trust funds for such purposes, and there is hereby created
a lien upon such moneys until so applied in favor of the holders of 1983 Bonds.
The cash required to be accounted for in each of the foregoing funds
established herein may be deposited in a single bank account, provided that adequate
accounting records are maintained to reflect and control the restricted allocation of the
cash on deposit therein for the various purposes of such funds as herein provided.
The designation and establishment of the various funds in and by this
Resolution shall not be construed to require the establishment of any completely
independent, self-balancing funds as such term is commonly defined and used in
governmental accounting, but rather is intended solely to constitute an earmarking of
certain revenues and assets of the System for certain purposes and to establish certain
priorities for application of such revenues and assets as herein provided.
SECTION 15. ARBITRAGE. The Issuer at all times while the 1983 Bonds and
the interest thereon are outstanding will comply with the requirements of Section 103(c)
of the Internal Revenue Code of 1954 and any valid and applicable rules and regulations
• promulgated thereunder.
SECTION 16. AMENDMENT OF ORIGINAL ORDINANCE. Sections 3.01,
3.02 and 3.04 of the-Original Ordinance are hereby amended to read as follows:
LKL 4/23/83 #138 -28-
,
3.01 Bonds Not To Be Indebtedness Of Issuer. Neither the bonds nor the
coupons attached thereto shall be or constitute general obligations or indebtedness of the
• Issuer as °;oonds" within the meaning of the Constitution of Florida, but shall be payable
solely from and secured by a lien upon and a pledge of the Pledged Funds as herein
provided. No owner or holder of any bond or coupon issued hereunder shall ever have the
right to compel the exercise of any ad valorem taxing power, or taxation in any form, to
Day such bond or coupons or the cost of operating and maintaining the system, or be
entitled to payment of such bond or coupon from any funds of the Issuer except from the
Pledged Funds in the manner provided herein.
3.02 Bonds Secured by Pledge of Pledged Funds and Special Funds Created
Therefrom. The payment of the debt service of all of the bonds issued hereunder shall be
secured forthwith equally and ratably by a pledge of and a first lien upon the Pledged
Funds. The Issuer does hereby irrevocably pledge the Pledged Funds to the payment of
the principal of and interest on the bonds issued pursuant to this ordinance and to the
payment into the Sinking Fund at the times provided of the sums required to secure to the
holders of the bonds issued hereunder the payment of the principal of and interest thereon
at the respective maturities of the bonds and coupons so held by them.
3.04 Covenants of the Issuer. So long as any of the principal of or interest on
any of the bonds shall be outstanding and unpaid, or until there shall have been set apart
in the Sinking Fund herein established, including the Reserve Account therein, a sum
sufficient to pay, when due, the entire principal of the bonds remaining unpaid, together
with interest accrued and to accrue thereon, the Issuer covenants with the holders of any
and all of the bonds issued pursuant to this ordinance as follows:
(A) Annual Budget of Revenue and Current Expenses. The Issuer covenants
and agrees that on or before the date of completion of construction of the project, or the
date of delivery of the bonds to the purchasers thereof if the system shall then be revenue
producing, it will adopt a budget of Revenue and Current Expenses for the system for the
remainder of the then current fiscal year and thereafter, on or before the first day of
each fiscal year during which any of the bonds are outstanding, it will adopt an Annual
Budget of Revenue and Current Expenses for the ensuing fiscal year, and will mail a copy
of such budget or amendments thereto to any requesting bondholder. Current Expenses
shall include all reasonable and necessary costs of operating, repairing, maintaining and
insuring the system, but shall exclude depreciation, payments into the Sinking Fund and
. payments into the Reserve Account Land Renewal and Replacement Fund. The Issuer
covenants that the Current Expenses incurred in any year will not exceed the reasonable
LKL 4/23/83 #138 . -29-
and necessary amounts required therefor, and that it will not expend any amount or incur
• any obligations for operations, maintenance and repair in excess of the amount provided
• for Current Expenses in the Annual Budget, except upon resolution by its Council that
such expenses are necessary to operate and maintain the system.
(B) Revenue Fund. The Issuer covenants and agrees that as soon as the
bonds shall be delivered to the purchasers thereof, it will establish with a depository in
the State of Florida, which is a member of the Federal Deposit Insurance Corporation and
which is eligible under the Laws of the State of Florida to receive municipal funds, and
maintain so long as any of the bonds are outstanding, a special fund to be known as the
"Okeechobee Water and Sewer System Revenue Fund", hereinafter called the "Revenue
Fund". The Revenue Fund shall be held by the Issuer separate and apart from all other
funds and shall be expended and used only in the manner and order specified in paragraphs
(C), (D) and (E) of this Section.
The Issuer further covenants and agrees that all revenues of the system shall
forthwith, and not less frequently than monthly, be deposited into said Revenue Fund
hereby created. The Issuer shall deposit into the Revenue Fund, -promptly as received, all
cash income received from the ownership and operation of the system.
(C) Operation and Maintenance Fund. The Issuer covenants and agrees to
establish with a depository in the State of Florida, which is a member of the Federal
Deposit Insurance Corpoation, and which is eligible under the Laws of the State of Florida
to receive municipal funds, a special fund to be known as the "Okeechobee Water and
Sewer System Operation and Maintenance Fund", which shall be used exclusively for the
purpose of receiving funds to be transferred monthly by the Issuer from the Revenue
Fund, and for paying, as they accrued, the Current Expenses of the system pursuant to the
Annual Budget. The Issuer shall transfer on or before the fifteenth day of each month
from the Revenue Fund and deposit to the credit of the Operation and Maintenance Fund
a sum sufficient to pay the Current Expenses of the system for the current month, all in
accordance with the Annual Budget. Any balance remaining in the Operation and
Maintenance Fund at the end of the fiscal year and not required to pay costs incurred
during said fiscal year shall be deposited promptly into the Revenue Fund.
(D) Bond and Interest Sinking Fund. The Issuer covenants and agrees to
establish with a depository in the State of Florida, which is a member of the Federal
Deposit
Insurance Corporation,
and which is eligible under
the Laws of the State of
• Florida
to receive municipal
funds a special fund or
funds, collectively called
"Okeechobee Water and Sewer System Bond and Interest Sinking Fund", hereinafter called
LKL 5/11/83 #138 ' -30-
the "Sinking Fund", to be used exclusively for''the,purposes hereinafter mentioned. After
having made the deposits to the Operation and Maintenance Fund as provided in paragraph
(C) above, the Issuer shall transfer on or before the 15th day of each month from the
• Revenue Fund and deposit to the credit of the Sinking Fund the following amounts:
(1) A sum equal to 1/6 or 1/12 of the amount of one year's semiannual
or annual interest coming due on all the bonds then outstanding, together with the amount
of any deficiency in prior deposits for interest; and
(2) Beginning on January 15, 1984, a sum equal to 1/12 of the principal
(including Amortization Installments for retirement of Term Bonds, if any) of the bonds
maturing on the next succeeding anniversary date, together with the amount of any
deficiency in prior deposits for principal (including such Amortization Installments).
(3) After fulfillment of the requirements of paragraphs (C) (1) and (2),
the Issuer shall transfer on or before the 15th day of each month from the Revenue Fund
and deposit to the credit of a special account in the Sinking Fund, herein called the
"Reserve Account", the sum of One Thousand Seven Hundred Ninety Four Dollars
($1,794.00) until such time as the funds and investments therein shall equal Three Hundred
Thirty Five Thousand Two Hundred Sixty Dollars ($335,260.00); and monthly thereafter
such amount as may be necessary to maintain in the Reserve Account the sum of Three
Hundred Thirty Five Thousand Two Hundred Sixty Dollars ($335,260.00) but not exceeding
One Thousand Seven Hundred Ninety Four Dollars ($1,794.00) monthly. Moneys in the
Reserve Account shall be used only for paying the principal of (including Amortization
Installments, if any) and interest on the bonds in the event that the moneys in the Sinking
Fund shall ever be insufficient to meet such payments. Surplus moneys in the Reserve
Account shall be transferred to the Sinking Fund.
(E) Renewal and Replacement Fund. After disposing of revenues as
required in paragraphs (C) and (D) above, the Issuer shall deposit into the City of
Okeechobee Water and Sewer Renewal and Replacement Fund, hereby created (the
"Renewal and Replacement Fund") the sum of 1/12 of $20,000 monthly; provided,
however, that no further deposits shall be required to be made whenever and so long as
the amount on deposit therein shall be at least $100,000. The moneys in the Renewal and
Replacement Fund shall be used only for the purpose of paying the cost of extensions,
enlargements or additions to, or the replacement of capital assets of the System and
emergency repairs thereto. Such moneys on deposit in such Fund shall also be used to
supplement the Reserve Account if necessary, in order to prevent a default in the
• payment of the principal of and interest on the Bonds. The moneys on deposit in such fund
shall be withdrawn only upon the authorization of the governing body of the issuer and the
consulting engineer. 31-
LKL 4/23/83 # 138 -
I . ,
(F) Transfer of Excess Funds. Subject to the provisions for the disposition
of revenues in paragraphs (C), (D) and (E), which are cumulative, the Issuer may use the
• balance of excess funds in the Revenue Fund for any lawful purpose.
(G) Excise Revenues. The issuer covenants and agrees to establish with a
depository in the State of Florida, which is a member of the Federal Deposit Insurance
Corporation, and which is eligible under the Laws of the State of Florida to receive
municipal funds, a special fund to be known as the "City of Okeechobee Excise Revenues
Fund", hereinafter called the "Excise Revenues Fund", which shall be used exclusively for
the purpose of receiving all of the proceeds of the Excise Revenues as soon as the same
are collected by the Issuer. Whenever by reason of the insufficiency of moneys on deposit
in the Revenue Fund, the Issuer is not able to make promptly the current monthly
payments required to be made pursuant to the provisions of paragraph (D) above, there
shall be paid into the Revenue Fund from the moneys on deposit in the Excise Revenues
Fund whatever sums are necessary to cure such existing deficit. After the 15th days of
each month, if all of the above-required current payments have been made from the
Revenue Fund, and from the Excise Revenues Fund to the extent necessary, the balance
of any moneys on deposit in the Excise Revenues Fund shall--be held -there in_until_all-sue h {
payments have-been-made for. -the- Current- Bond --Year,- and. then--any-exc-ess: may be
j withdrawn and used by the Issuer for any lawful municipal purpose,
(H) Trust Funds. The funds and accounts created and established by this
ordinance shall constitute trust funds for the purpose provided herein for such funds. All
of such funds, except as hereinafter provided, shall be continuously secured in the same
manner as municipal deposits of funds are required to be secured by the Laws of the State
of Florida. Moneys on deposit to the credit of each of such funds and accounts may be
invested in Authorized Investments, maturing in the case of the Reserve Account, not
more than 15 years from date of purchase, and in the case of the other funds and
accounts, not later than the date such moneys will be needed for the purposes of such
respective funds and accounts. The securities so purchased as an investment of funds
shall be deemed at all times to be a part of the account from which the said investment
was withdrawn, and the interest accruing thereon and any profit realized therefrom shall
be credited to such account and any loss resulting from such investment shall likewise be
charged to said account.
(I) Rates and Charges. The Issuer covenants and agrees to maintain and
• collect, so long as any of the bonds are outstanding, such schedule of water and sewer
rates and charges which, together with the proceeds of the Excise Revenues, will produce
LKL 5/11/83 #138 ' -32-
Net Revenues in each fiscal year which shall be-sufficient to provide for 125% of the
Annual Debt Service Requirement for such year on the outstanding Bonds and 100% of all
other payments provided for in this Ordinance; and the Issuer covenants and agrees that so
• long as any of the bonds are outstanding and unpaid, at the same time and in like manner
that the Issuer prepares its Annual Budget of Revenues and Current Expenses, the Issuer
shall annually prepare an estimate of gross revenues to be derived from the operation of
the system for the ensuing fiscal year, and to the extent that said gross revenues are
insufficient to pay debt service requirements during such ensuing year on all outstanding
bonds payable from the revenues of the system, build up and maintain the required
reserves for all such outstanding bonds and pay Current Expenses, the Issuer shall revise
the fees and rates charged for the use of the services and facilities of the system
sufficiently to provide the funds required.
(J) Levy of Public Service Taxes. The City has covenanted that it will not
repeal the Ordinance now in effect levying the Public Service Tax and will not amend or
modify said Ordinance in any manner so as to impair or adversely affect the power and
obligation of the City to levy and collect the Public Service Tax as presently in effect or
to impair or adversely affect in any manner the pledge of the proceeds of the Public
Service Tax made in the Ordinance or the rights of the holders of the Bonds.
The City further covenants that it will not repeal, amend or modify the
Ordinances or agreements pursuant to which the franchise revenues are to be collected
and received in any manner so as to reduce or impair, or adversely affect, the undertaking
of the City to apply the franchise revenues as provided herein.
The City further covenants that it will not take any action which will
jeopardize the receipt of the Guaranteed Entitlement Trust Funds in any way as to reduce
or impair, or adversely affect, the undertaking of the City to apply the Guaranteed
Entitlement Trust Funds as provided herein.
(K) Issuance of other Obligations.
(1) The Issuer covenants and agrees that in the event the cost of
construction or completion of the project shall exceed the dollar amount of bonds herein
authorized, it shall deposit into the Construction Account the amount of such excess out
of funds available to it for such purpose, and the Issuer may provide such excess, and only
such excess, through the issuance of additional parity bonds conforming to the
requirements of paragraph (3) of this subsection; but except to complete the project, it
will not issue any other obligations payable from or secured by the Pledged Funds unless
• the conditions hereinafter set forth shall be met, or unless the lien of such obligations is
junior and subordinate in all respects to the lien of these bonds.
LKL 4/23/83 #138 -33-
n
(2) The Issuer shall have the rJgl)t to add new water or sewer facilities
and related auxiliary facilities, by the issuance of one or more additional series of bonds
to be secured by a parity lien on and ratably payable from the Pledged Funds, provided in
• each instance that:
(a) The facility or facilities to be built from the proceeds of the
additional parity bonds is or are made a part of the system and its or their revenues are
pledged as additional security for the additional parity bonds and the outstanding bonds.
(b) The Issuer is in compliance with all covenants and undertak-
ings in connection with all of its bonds then outstanding and payable from the Pledged
Funds and has not been in default as to any payments required to be made under this
ordinance for a period of at least the next preceding 24 months, or if at such time the
bonds shall not have been outstanding for 24 months then for the period that the bonds
shall have been outstanding.
(c) The annual Net Revenues (plus the proceeds of the Excise
Revenues, if they shall be pledged as security for the outstanding bonds and the additional
parity bonds) for the fiscal year next preceding the issuance of additional parity bonds are
certified by an independent public accountant employed by the Isisuer, to have been equal
to at least one and twenty-five hundreths (1.25) times the Maximum Annual Debt Service
Requirements for all the bonds then outstanding and payable from such Pledged Funds.
(d) The estimated average annual net revenues of the facility or
facilities to be constructed and acquired with the proceeds of such additional parity bonds
(and any other funds pledged as security), when added to the estimated future average
annual net revenues of the then existing system (plus the proceeds of the Excise
Revenues, if it shall be pledged as security for the outstanding bonds and the additional
parity bonds) shall be at least one and twenty-five hundreths (1.25) times the Maximum
Annual Debt Service Requirements for all outstanding bonds payable from the revenues of
the system and on the additional parity bonds proposed to be issued. Estimates of future
revenues and operating expenses shall be furnished by recognized independent consulting
engineers and approved by the Council of the Issuer and by the Mayor thereof, and shall be
forecast over a period of not exceeding five years from the date of completion of the
project financed by the additional parity bonds proposed to be issued. Provided, however,
the conditions provided by this paragraph and by the next preceding paragraph (c) may be
waived or modified by the written consent of the holders of seventy-five per centum
(75%) of the bonds then outstanding.
is (e) The annual Net Revenues (plus the proceeds of the Excise
Revenues, if they shall be pledged as security for the outstanding bonos and the additional
parity bonds) for any 12 consecutive months within the 18 month period next preceding
LKL 5/19/83 #138 -34-
the issuance of additional parity bonds are certified by an independent public accountant
employed by the Issuer to have been equal to at least the Maximum Annual Debt Service
Requirements for all the outstanding bonds payable from such Pledged Funds and the
• additional parity bonds proposed to be issued.
(f) If desirable, the Net Revenues for the applicable periods
described in (c) and (e) above may be adjusted by recognized independent consulting
engineers to reflect for each of the full applicable periods changes in the rates, fees,
rentals or other charges from the operation of the system which have been adopted and
are in effect prior to the date of issuance of the additional parity bonds proposed to be
issued.
(3) The Issuer hereby covenants and agrees that in the event additional
series of additional parity bonds are issued, it will provide that said additional parity
bonds shall mature in such years that they and all other bonds payable from the revenues
of the system shall mature according to a schedule which most closely approximates equal
annual installments of combined principal and interest payments; it will adjust the
required deposits into and the maximum amount to be maintained in the Sinking Fund,
including the Reserve Account therein, on the same basis as hereinabove prescribed, to
reflect the Annual Debt Service Requirement on the additional parity bonds; and it will
make such additional parity bonds payable as to principal on January 1 of each year in
which principal falls due and the interest thereon payable on January 1 (and, if
semiannual, July 1) of each year. If in any subsequently issued series of bonds secured by
a parity lien on the revenues of the system it is provided that excess revenues shall be
used to redeem bonds in advance of scheduled maturity, or if the Issuer at its option
undertakes to redeem outstanding bonds in advance of scheduled maturity, the Issuer
covenants that calls of bonds will be applied to each series of bonds on an equal pro rata
basis (reflecting the proportion of the original amount of each series of bonds outstanding
at the time of such call) to the extent that this may be accomplished in accordance with
the call provisions of the respective bond series, but the Issuer shall have the right to call
any or all outstanding bonds which may be called at par prior to calling any bonds that are
callable at a premium.
(L) Disposal of Facilities. The Issuer covenants and agrees that, so long as
any of the bonds are outstanding, it will maintain its corporate identity and existence and
will not sell or otherwise dispose of any of the system facilities or any part thereof, and,
except as provided for above, it will not create or permit to be created any charge or lien
• on the revenues thereof ranking equal or prior to the charge or lien of these bonds.
Notwithstanding the foregoing, the Issuer may at. any time permanency abandon the use
of, or sell at fair market value, any of its system facilities, provided that:
LKL 5/19/83 #138 -35-
(a) It is in compliance with'al.1-covenants and undertakings in connec-
tion with all of its bonds then outstanding and payable from the revenues of the system,
and the debt service reserve for such bonds has been fully established;
• (b) It will, in the event of sale, apply the proceeds to either (1)
redemption of outstanding bonds in accordance with the provisions governing repayment
of bonds in advance of maturity, or (2) replacement of the facility so disposed of by
another facility the revenues of which shall be incorporated into the system as
hereinbefore provided;
(c) It certified, prior to any abandonment of use, that the facility to
be abandoned is no longer economically feasible of producing net revenues; and
(d) It certified that the estimated net revenues of the remaining
system facilities for the next succeeding fiscal year, plus the estimated net revenues of
the facility, if any, to be added to the system, satisfy the earnings test hereinbefore
provided in this subsection governing issuance of additional parity bonds.
(M) Insurance on System. While any of the bonds shall remain outstanding,
the Issuer shall carry at least the following insurance coverage:
(1) Fire and extended coverage insurance on the insurable portions of
the system, in amounts sufficient to provide for not less than full recovery whenever a
loss from perils insured against does not exceed eighty per centum (80%) of the full
insurable value of the damaged facility.
In the event of any damage to or destruction of any facility or facilities
of the system, the Issuer shall deposit the insurance proceeds in the Reserve Account and
promptly arrange for the application thereof to the repair or reconstruction of the
damaged or destroyed portion thereof.
(2) Public liability insurance relating to the operation of the system,
with limits of not less than $100,000 for one person and $300,000 for more than one person
involved in one accident, to protect the Issuer from claims for bodily injury and/or death;
and not less than $10,000 from claims for damage to property of others which may arise
from the Issuer's operation of the system.
(3) If the Issuer owns or operates a vehicle in the operation of the
system, vehicular public liability insurance with limits of not less than $100,000 for one
person and $300,000 for more than one person involved in one accident to protect the
Issuer from claims for bodily injury and death, and not less than $10,000 against claims for
damage to property of others which may arise from the Issuer's operation of vehicles.
• (4) All such insurance shall be carried for the benefit of the holders of
the bonds. All moneys received for losses under any of such insurmice, txctp; ruu:i.:
liability, are hereby pledged by the Issuer as security for the bonds herein authorized,
LKL 5/19/83 #138 -36-
until and unless such proceeds are used to remedy the loss or damage for which such
proceeds are received, either by repairing the property damaged or replacing the property
destroyed within ninety (90) days from the receipt of such proceeds.
• (N) Maintenance of System. The Issuer will complete the construction of
the project as provided for in this ordinance in an economical and efficient manner with
all practicable dispatch, and thereafter will maintain the system in good condition and
continuously operate the same in an efficient manner and at a reasonable cost.
(O) No
Free Services.
The Issuer will not
render or
cause to be rendered
any free services
of any nature
by its system, nor
will any
preferential rates be
established for users of the same class; and if the Issuer shall avail itself of the facilities
or services provided by the system, or any part thereof, then the same rates, fees or
charges applicable to other customers receiving like service under similar circumstances
shall be charged to the Issuer. Such charges shall be paid as they accrue, and the Issuer
shall transfer from its general funds sufficient sums to pay such charges. The revenues so
received shall be deemed to be revenues derived from the operation of the system, and
shall be deposited and accounted for in the same manner as other revenues derived from
such operation of the system.
(P) Failure of User to Pay for Services. Upon failure of any user to pay for
services rendered within sixty (60) days, the Issuer shall shut off the connection of such
user and shall not furnish him or permit him to receive from the system further service
until all obligations owed by him to the Issuer on account of services shall have been paid
in full. This covenant shall not, however, prevent the Issuer from causing any system
connection to be shut off sooner.
(Q) Enforcement of Collections. The Issuer will diligently enforce and
collect the rates, fees and other charges for the services and facilities of the system; and
will take all steps, actions and proceedings for the enforcement and collection of such
rates, charges and fees as shall become delinquent to the full extent permitted or
authorized by law; and will maintain accurate records with respect thereof. All such fees,
rates, charges and revenues herein pledged shall, as collected, be held in trust to be
applied as provided in this ordinance and not otherwise.
(R) Sufficiency of Rates. The Issuer covenants and agrees that it will fix,
establish, revise from time to time whenever necessary and maintain always such fees,
rates, rentals, and other charges for the use of the product, services and facilities of the
system which, together with the proceeds of the cigarette tax, will always produce cash
. revenues sufficient to pay, and out of such funds pay, as the same shall become due, the
principal of and interest on the said outstanding prior lien obligations and the bonds, the
necessary expenses of operating and maintaining the system and all reserve, Sinking Fund
LKL 5/19/83 #138 -37-
or other payments required by this ordinance, and to meet the requirements of Subsection
(I) above and that such rates, fees, rentals or other charges will not be reduced so as to be
insufficient to provide funds for such purposes.
• (S) Compliance with Laws and Regulations. The Issuer covenants and
agrees to perform and comply with, in every respect, the Loan and Grant Agreements
which it might have with the United States of America, acting by and through the
Farmers Home Administration, U.S. Department of Agriculture (hereinafter called the
"Government"), or with any other governmental agency and all applicable State Laws and
regulations and to continually operate and maintain the system in good condition.
(T) Remedies. Any holder of the bonds or any coupons appertaining thereto
issued under the provisions of this ordinance, or any trustee acting for the holders of such
bonds and coupons, may either at law or in equity, by suit, action, mandamus or other
proceedings in any court of competent jurisdiction, protect and enforce any and all rights,
including the right to the appointment of a receiver, existing under the Laws of the State
of Florida, or granted and contained in this ordinance, and may enforce and compel the
performance of all duties required by this ordinance or by any applicable State or Federal
statutes to be performed by the Issuer or by any officer thereof.
Nothing herein, however, shall be construed to grant to any holder of such
bonds or coupons any lien on any real property of the Issuer.
(U) Records and Audits. The Issuer shall keep books and records of the
revenues of the system and of the proceeds 'of the cigarette tax, which such books and
records shall be kept separate and apart from all other books, records and accounts of the
Issuer, and any holder of a bond or bonds or the coupons applicable thereto issued pursuant
to this ordinance shall have the right to, at all reasonable times, inspect all records,
accounts and data of the Issuer relating thereto.
So long as any of the bonds shall be outstanding, the Issuer will furnish on or
before ninety (90) days after the close of each fiscal year, to any bondholder who shall
request the same in writing, copies of an annual audit report prepared by an independent
public accountant or an auditing official of the State of Florida, covering for the
preceding fiscal year, in reasonable detail, the financial condition and record of operation
of the system and any other facilities the revenues of which are pledged to the payment
of the bonds.
(V) Connection with System. The Issuer will, to the full extent permitted
by law, require all lands, buildings, residences and structures within its corporate limits
. which can use the facilities and services of the system to connect therewith and use the
facilities and services thereof, and to cease the use of all other facilities.
LKL 5/19/83 #138
-38-
n
The Issuer will not grant a franchise for the operation of any competing water or sewer
system until all bonds issued hereunder, togetheri4with interest thereon, shall have been
paid in full.
• (W) Fidelity Bonds. The Issuer will require each employee who may have
possession of money derived from the operation of the system to be covered by a fidelity
bond written by a responsible indemnity company in an amount fully adequate to protect
the Issuer from loss.
(X) Government Approval of Extensions and Financing. Anything herein to
the contrary notwithstanding, if the Government is the purchaser of any of the bonds, the
Issuer will not borrow any money from any source or enter into any contract or agreement
or incur any other liability in connection with making extensions or improvements other
than normal maintenance of the system, or permit others to do so, without obtaining the
prior written consent of the Government, while the Government continues to hold any, of
the bonds.
(Y) Reimbursement of Advances and Interest Thereon. While the Govern-
ment shall be the holder of any of the bonds, the Government shall have the right to make
advances for the payment of insurance premiums and/or other advances which, in the
opinion of the Government, may be required to protect the Government's security
interest. In the event of any such advances, the Issuer covenants and agrees to repay the
same, together with interest thereon at the same rate per annum as specified in the
bonds, upon demand made at any time after any such expenditure by the Government.
Any such amounts due the Government shall take priority over any other payments from
the Reserve Account.
(Z) Release of Excise Revenues. At such time as the Issuer may be able to
obtain and file in the minutes of its City Council a certificate of an independent certified
public accountant stating that for the immediately preceding fiscal year the Net
':evenues derived from the operation of the System equaled at least one hundred forty per
centum (140%) of the combined Maximum Annual Debt Service Requirement maturing in
any one ensuing fiscal year on all outstanding obligations payable from the revenues of the
system then, upon
a declaration by
resolution
of
the City Council, the lien hereby
impressed upon the
Excise Revenues
as security
for
the payment of the bonds shall be
permanently released, and thereafter the payment of the bonds shall be solely secured by
a lien upon and pledge of the Net Revenues to be derived from the operation of the
System; provided, however, the Excise Revenues shall not be released unless all payments
• required by this ordinance to have been made to the several funds herein specified shall
have been made in full, and the Reserve Account shall have on deposit therein at least the
sum of Three Hundred Thirty Five Thousand Two Hundred Sixty Dollars ($335,260.00) as
such sum may be adjusted upon the issuance of any additional parity bonds.
LKL 5/19/83 #138 -39-
Section 4.02 of the Original Ordinance is hereby amended to read as follows:
4.02 Creation of Superior Liens. The Issuer covenants that it will not issue
• any other bonds, certificates or obligations of any kind or nature or create or cause or
permit to be created any debt, lien, pledge, assignment or encumbrance or charge payable
from or enjoying a lien upon the revenues of the system or the Excise Revenues ranking
prior and superior to the lien created by this Ordinance for• the benefit of the bonds herein
authorized.
The Original Ordinance is further amended by adding thereto the provisions of
Section 18 of this Ordinance.
SECTION 17. USE OF FUNDS SET ASIDE FOR REFUNDED BONDS. The
moneys and investments in the funds and accounts established in the Resolution
authorizing the issuance of the Refunded Bonds shall be transferred to one or more or the
corresponding funds and accounts established in the Original Ordinance or this Ordinance
or shall be deposited in escrow for payment of the Refunded Bonds pursuant to the Escrow
Deposit Agreement described in Section 13 hereof. The distribution of such moneys and
investments among the accounts, funds and Escrow Deposit Agreement shall be made as
determined by the Issuer prior to the delivery of any of the 1983 Bonds.
SECTION 18. DEFEASANCE. If, at any time, the Issuer shall have paid, or
shall have made provision for payment of, the principal, interest, Amortization Install-
ments and redemption premiums, if any, with respect to the Bonds, then, and in that
event, the pledge of and lien on the Pledged Funds, and all other covenants and pledges
made in this Ordinance in favor of the holders of the Bonds shall no longer be in effect.
For purposes of the preceding sentence, deposit of cash and/or Federal Securities or bank
certificates of deposit fully secured as to principal and interest by Federal Securities (or
deposit of any other securities or investments which may be authorized by law from time
to time and sufficient under such law to effect such a defeasance) in irrevocable trust
with a banking institution or trust company, for the sole benefit of the bondholders, in
respect to which such Federal Securities or certificates of deposit, the principal and
interest received will be sufficient to make timely payment of the principal, interest,
Amortization Installments and redemption premiums, if any, on the outstanding Bonds,
shall be considered "provision for payment". Nothing herein shall be deemed to require
the Issuer to call any of the outstanding Bonds for redemption prior to maturity pursuant
to any applicable optional redemption provisions, or to impair the discretion of the Issuer
in determining whether to exercise any such option for early redemption. Notwithstand-
• ing any other provisions of this section, no provision for payment, within the meaning
hereof, shall be effective with respect to any Bonds registered in the name of the
Government unless the Government shall consent thereto.
LKL 5/19/83 #138 -40-
n
SECTION 19. MODIFICATION OR-AMENDMENT. No material modification
or amendment of this Ordinance or of any ordinance or resolution amendatory hereof or
supplemental hereto may be made without the consent in writing of the holders of two-
40 thirds or more in the principal amount of the Bonds then outstanding; provided, however,
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
thereof or affecting the promise of the Issuer to pay the principal of and interest on the
Bonds as the same shall become due from the Pledged Funds or reduce the percentage of
the holders of the Bonds required to consent to any material modification or amendment
hereof without the consent of the holder or holders of all such Bonds; provided, however,
that no such modification or amendment shall allow or permit any acceleration of the
payment of principal of or interest on the Bonds upon any default in the payment thereof
whether or not the holders of the Bonds consent thereto.
SECTION 20. SEVERABILITY OF INVALID PROVISIONS. If any one or more
of the covenants, agreements, or provisions herein contained shall be held contrary to any
express provision of law or contrary to the policy of express law, though not expressly
prohibited, or against public policy, or shall for any reason whatsoever be held invalid,
then such covenants, agreements or provisions shall be null and void and shall be deemed
separable from the remaining covenants, agreements or provisions and shall in no way
affect the validity of any of the other provisions hereof or of the Bonds or coupons issued
hereunder.
SECTION 21. SALE OF 1983 BONDS. The 1983 Bonds shall be issued and
sold in such manner and at such price or prices consistent with the Act, all at one time or
in installments from time to time, as shall be hereafter determined by resolution of the
governing body of the Issuer, provided that the 1983 Bonds or any installment thereof shall
be sold only if, (i) at the time of sale of the first installment of the 1983 Bonds, the
consent attached hereto as Exhibit B shall be executed by the holders of all the Parity
Bonds and shall be in full force and effect, and (ii) the first installment of 1983 Bonds is
sold and delivered in an aggregate amount sufficient to effect the complete refunding
program described in Section 14(D) of this Ordinance.
SECTION 22. VALIDATION AUTHORIZED. The attorney for the Issuer is
authorized and directed to prepare and file proceedings to validate the 1983 Bonds in the
manner provided by law.
SECTION 23. ESTABLISHMENT OF RATES SUFFICIENT TO MEET PARITY
• TEST. The Issuer shall establish, maintain and collect always rates and charges for the
services of the System which will produce sufficient Net Revenues, together with the
Public Service Tax, Franchise Revenues and Guaranteed Entitlement Funds, to enable the
LKL 5/19/83 #138 -41-
Issuer to comply with the provisions of Section-3E of this Ordinance by securing the
consent described therein, or, in the alternative to enable the Issuer to comply with the
• provisions of Section 3.04(K) of the Original Ordinance, as herein amended, with respect
to the issuance of the 1983 Bonds.
SECTION 24. EVENTS OF DEFAULT AND REMEDIES. If one or more of the
following events shall happen:
A. The Issuer shall fail to pay the principal of or interest on any of the
Bonds as the same shall become due; or
B. The Issuer shall fail in the observance or performance of any of the
covenants contained in this Ordinance or the Original Ordinance then, in each and every
case, any holder or holders of 1983 Bonds then outstanding and affected thereby shall have
all the rights and remedies afforded to the holders of Bonds under the Original Ordinance,
the provisions of which are hereby incorporated by reference.
SECTION 25. SUPPLEMENTAL ORDINANCES AND RESOLUTIONS. The
Issuer may, from time to time and at any time, adopt such ordinances or resolutions as
shall be inconsistent with the terms and conditions of this Ordinance:
A. To cure any ambiguity, defect, or omission in this Ordinance; or
B. To secure, extend or renew to the holders of the 1983 Bonds the pledges
made herein for the payment of the 1983 Bonds and the interest to accrue thereon.
SECTION 26. REPEALING CLAUSE. Ordinance No. 485 enacted by the City
Council of the Issuer on April 18, 1983, relating to the same subject as this Ordinance, is
hereby repealed. All other ordinances or resolutions or parts thereof of the Issuer in
conflict with the provisions herein contained are, to the extent of such conflict, hereby
superseded and repealed.
LKL 6/2/83 #138 -42-
SECTION 27. EFFECTIVE DATE, This Ordinance shall take effect as
provided by law.
Introduced on 1st reading and set for-public hearing this 6th day of June ,
1983.
Mayor
ATTEST:
City Clerk
1983. Introduced and passed on second and final reading this 20th day, of June I
.
ATTEST:
Mayor
c
*1tVC
Approved as to form:
;KJ O~A~ Q
"LLVIliey
CF.Nl'll7(:.4Tls'
`'r I Tli OF I•'1.ORll)4
r:rll \'TV OI' UA'I:Er:HOltl'h' t
'k;' '1'NO.11:1~. )11ik1:ll?' CERTIFY THAT 1 am thp dw
t Wiif (3rrk of th' rah of Okrrrhrrhrr. I'7rrrida: that the nhnreagd furrKuiuit
is a true anti rnrrrW rnity of a Onrumrnt the u►iginal of whir•1r to nn fill- in the
Wfirr of" thr City (.%r•rk of the City of Okrl-rhnbr... Flurlda.
1% It77NV~ -N 1b11liHh*0 ~hn rrvnrttn . •t trt,y hand unit of trl- thr
nllirial oral of paid rite. this ~ dnI o ~j
f 4.11. loa....
I ~
BONNIE S. THONI
THOMAS
CITY CLERK
LKL 6/2/83 #138 -43-
01