0228 Water System)g a 4J
AN ORDINANCE PROVIDING FOR THE ACQUISITION
AND CONSTRUCTION OF EXTENSIONS AND ADDITIONS
TO TTTE WATER SYSTEM OF THE CITY OF OKEECHOBEE,
AND AUTHORIZING THE ISSUANCE OF WATER REVENUE
CERTIFICATES TO FAY THE COST OF SAID IMPROVITENTS.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
OKEECHOBEE, FLORIDA, IN SESSION DULY ASSEMBLED:
ARTICLE I
STATUTORY AUTHORITY, FINDINGS AND DEFINITIONS
1. AUTHORITY OF THIS ORDINANCE. This Ordinance
is adopted pursuant to the provisions of Chapter 8318,
Special Acts of the Legislature of the State of Florida,
1919, and amendments thereof and supplements thereto, being
the Charter of the City of Okeechobee, and other applicable
provisions of law.
2. FINDIrGS. It is hereby found and determined
as follows:
A. That the City of Okeechobee now owns, operates
and maintains a Water System as a public utility and has so
owned, operated and maintainer; such Tater System since about
June, 1964 ; that such Water System includes
all tanks, standpipes, pumps, pipes, mains, treatment plants,
meters and all other property and equipment used in or con-
nected with the operation or maintenance of such system or t
furnishing of water for individual, commercial, municipal or
other use to the residents and inhabitants of the City of
Okeechobee.
B. That the City derives Revenues from rates, fees
and charges made and collected for the services and facil-
ities of said Water System, and the Revenues derived by the
City from said Water System are not pledged or encumbered in
any manner and that no obligations of any kind or nature are
chargeable against the Revenues of any part of said Water
System.
C. That it is necessary for the protection of the
peace, health, prosperity, safety and welfare of the inhab-
itants of the City that the Water System be improved by ex-
tensions and additions thereto, including
Reconditioning water tank, and repairs to plant
equipment, new filter, and new line to lake, new
pumps, and extensions of water mains.
D. That the net Revenues derived by the City from
the Water System, over and above the cost of operation and
maintenance, will be sufficient, together with the increased
Revenues to be derived from the extensions and improvements
of said Water System, to pay the principal of and interest
on all of the Water Revenue Certificates issued pursuant to
this Ordinance, as hereinafter provided, to pay operating
expenses of the Water System, and to make all reserve, sink-
ing fund and other payments provided for in this Ordinance.
E. That the principal of and interest on the Cert-
ificates to be issued pursuant to this Ordinance, the cost of
operating and maintaining the Water System, and all of the
reserve, sinking fund and other payments provided for in
this Ordinance will be paid solely from the Revenues derived
by the City from the operation of said Water System, and it
will never be necessary or required to use the taxing power
of said City to pay the principal of and interest on the Water
Revenue Certificates to be issued pursuant to this Ordinance,
to pay the cost of operating and maintaining the Water Sys-
tem, or to make any of the reserve, sinking fund or other
payments provided for in this Ordinance, and the Water Rev-
enue Certificates issued pursuant to this Ordinance shall not
constitute a lien upon any of the properties of said Water
System or upon any other property whatsoever of the City.
F. That the City's Water System shall be improved
and extended substantially in accordance with the plans and
specifications prepared by A. P. Black and N. U. ibough, engineers
2
and heretofore filed in the office of the City Clerk, at an
estimated cost of X50,000, consisting of the proceeds of the
obligations authorized by this Ordinance. Such cost shall
be deemed to include the cost of the construction or acqui-
sition of the improvements, extensions and additions to said
Water System, including the acquisition of any lands or in-
terest therein and of any fixtures or equipment or properties
deemed necessary or convenient therefor; interest upon Cer-
tificates issued pursuant to this Ordinance prior to, and
during, and for six months after the completion of such im
provements, extensions and additions; engineering and legal
expenses; expenses for estimates of costs and of Revenues;
expenses for plans, specifications and surveys; administra-
tive expenses and such other expenses as may be necessary or
incidental to the financing authorized by this Ordinance,
and the construction or acquisition of the improvements, ex-
tensions and additions authorized by this Ordinance and the
placing of same in operation.
3. ORDINAKCE TO CONSTITUTE CONTRACT. In consider-
ation of the acceptance of the Certificates authorized to be
issued hereunder by those who shall hold the same from time
to time, this Ordinance shall be deemed to be and shall con-
stitute a contract between the City and such Certificate -
holders, and the covenants and agreements herein set forth
to be performed by said City shall be for the equal benefit,
protection and security of the legal holders of any and all
of such Certificates and the coupons attachedthereto, all of
which shall be of equal rank and without preference, priority
or distinction of any of the Certificates or coupons over any
+ther thereof except as expressly provided therein and herein.
4. DEFINITIONS. The following terms shall have the
ollowing meanings in this Ordinance unless the text otherwise
:xpressly requires:
(A) "City" shall mean the City of Okeechobee, Florida.
(B) "Act" shall mean the Charter of the City, being
Chapter 8318, Special Acts of the Legislature of the State
of Florida for the year 1919, and amendments thereof and
supplements thereto.
(C) "Certificates" shall mean the X50,000 `;'dater Rev-
enue Certificates originally authorized to be issued pur-
suant to this Ordinance and the interest coupons attached to
said Certificates, and shall also be deemed to include any
Certificates, and the interest coupons attached thereto,
subsequently issued pursuant to and within the limitations
of this Ordinance.
(D) "Holder of Certificates" or "Certificateholder ", or
any similar term, shall mean any person who shall be the
bearer or owner of any outstanding Certificate or Certif-
icates registered to bearer or not registered, or the regis-
tered owner of any outstanding Certificate or Certificates
which shall at the time be registered other than to bearer,
or of any coupons representing interest accrued or to accrue
on said Certificates.
(E) "water System" shall mean the complete Water Sys-
tem now owned and operated by the City, together with any and
all improvements, extensions and additions thereto hereafter
constructed or acquired, and any and all property now or here
after owned by the City which shall be used in connection
with said Water System and shall include (withCut being lim-
ited to) all lands or interest therein, plants, buildings,
machinery, franchises, pipes, fixtures, equipment and all
property, real or personal, tangible or intangible, now or
hereafter owned or used in connection with said Water System.
(F) "Facilities" shall mean all the facilities of said
Water System, and all parts thereof now owned by the City, or
constructed or acquired pursuant to this Ordinance, and also
any facilities which may hereafter be added to said Water
System, or any parts thereof, by any additions, betterments,
4
extensions, improvements thereto, or property of any kind
or nature, real or personal, tangible or intangible, here-
after constructed or acquired.
(G) "Revenues" shall mean all rates, fees, charges
or other income received by the City, or accrued to the City,
or any board or agency thereof in control of the management
and operation of said Water System, and all parts thereof,
from the operation of said Water System, all as calculated
in accordance with sound accounting practice.
(H) "Operating Expenses" shall mean the current ex-
penses, paid or accrued, of operation, maintenance and repair
of said Water System and its facilities and shall include,
without limiting the generality of the foregoing, insurance
premiums and administrative expenses of the City properly
chargeable to the Water System, and charges for the accum-
ulation of appropriate reserves not annually recurrent but
which are such as may reasonably be expected to be incurred
in accordance with sound accounting practice. "Operating
Expenses" shall not include any allowance for depreciation
except to the extent expressly herein provided.
(I) Words importing singular number shall include the
plural number in each case and vice versa, and words import-
ing persons shall include firms and corporations.
ARTICLE II
AUTHORIZATION, TEF,JVIS , EXECUTION, REGIST-
RATION AND ISSUE OF CERTIFICATES.
5. AUTHORIZATION OF CERTIFICATES. Subject and
pursuant to the provisions of this Ordinance, Certificates of
the City of Okeechobee to be known as "Water Revenue Certif-
icates" are hereby authorized to be issued in the aggregate
principal amount of not exceeding Fifty Thousand Dollars
(450,000) .
6. DESCRIPTION OF CERTIFICATES. The Certificates
shall be dated December 1, 1947; shall be in the denomination
of 41,000 each; shall be numbered from 1 to 50, inclusive;
5
shall bear interest at the rate of four and one -half per
centum per annum payable semi - annually on June 1 and Dec-
ember 1 of each year, and shall mature, in numerical order,
lowest numbers first, on. December 1 of each year, in the
years and amounts as follows:
v2,000 in each of the years 1948 and 1949,
43,000 in each of the years 1950 to 1952, both inclusive;
4,000 in each of the years 1953 to 1960, both inclusive; an
x5,000 in the year 1961.
Said Certificates shall be issued in coupon form;
shall be payable with respect to both principal and interest
in lawful money of the United States of America at the prin-
cipal office of the Chase National Bank of the City of New York,
New York
and shall bear interest from their date, payable in accord-
ance with and upon surrender of the appurtenant interest cou-
pons as they severally mature.
7. EXECUTION OF CERTIFICATES AND COUPONS. Said
Certificates shall be executed in the name of the City by its
Mayor and countersigned by the President of the City Council
and its corporate seal shall be affixed thereto and attested
by the City Clerk. In case any one or more of the officers
who shall have signed or sealed any of the Certificate: shall
cease to be such officer of the City before the Certificates
so signed and sealed shall have been actually sold and del-
ivered, such Certificates may nevertheless be sold and del-
ivered as herein provided and may be issued as if the persons
who signed or sealed such Certificates had not ceased to hold
such offices. Any Certificates may be signed and sealed on
behalf of the City by such person or persons as at the actual
time of the execution of such Certificates shall hold the
roper office in the City, although at the date of such Cer-
tificates such person may not have held such office or may not
lave been so authorized.
The coupons to be attached to the Certificates shall
6
be authenticated with the fac simile signatures of the pre-
sent or any future Mayor, President of the City Counsel and
City Clerk of said City, and the City may adopt and use for
that purpose the fac simile signatures of any of said per-
sons who shall have held such offices at any time on or
after the date of the Certificates, notwithstanding that
they may have ceased to hold such office, at the time when
said Certificates shall be actually sold and delivered.
8. NEGOTIABILITY AND REGISTRATION. The Certif-
icates shall be, and have all of the qualities and incidents
of, negotiable instruments under the law merchant and the
Negotiable Instruments Law of the State of Florida, and each
successive holder, in accepting any of said Certificates or
the coupons appertaining thereto, shall be conclusively deem-
ed to have agreed that such Certificates shall be and have
all of the qualities and incidents of negotiable instruments
under the law merchant and the Negotiable Instruments Law
of the State of Florida, and each successive holder shall
further be conclusively deemed to have agreed that said Cer-
tificates shall be incontestable in the hands of a bona fide
holder for value in the manner provided hereinafter in the
form of said Certificates.
The Certificates may be registered at the option
of the holder as to principal only, or as to both principal
and interest at the office of the City Clerk, such registra-
tion to be noted on the back of said Certificates in the
space provided therefor. After such registration as to prin-
cipal only, or both principal and interest, no transfer of the
Certificates shall be valid unless made at said office by the
registered owner, or by his duly authorized agent or repre-
sentative and similarly noted on the Certificates, but the
Certificates may be discharged from registration by being
in like manner transferred to bearer and thereupon transfer-
7
ability by delivery shall be restored. At the option of the
holder the Certificates 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 ne-
gotiability of the coupons which shall continue to pass by
delivery.
9. CERTIFICATES ltiTJTILATED, DESTROYED, STOLEN OR
LOST. In case any Certificate shall become mutilated or
be destroyed, stolen or lost, the City may in its discretion
issue and deliver a new Certificate with all unmatured coupons
attached of like tenor as the Certificate and attached coupons,
if any, so mutilated, destroyed, stolen or lost, in exchange
and substitution for such mutilated Certificate, upon sur-
render and cancellation of such mutilated Certificate and
attached coupons, if any, or in lieu of and substitution for
the Certificate and attached coupons, if any, destroyed,
stolen or lost and upon the holder furnishing the City proof
of his ownership thereof and satisfactory indemnity and com-
plying with such other reasonable regulations and conditions
as the City may prescribe and paying such expenses as the
City may incur. All Certificates and coupons so surrendered
shall be cancelled by the City Clerk and held for the account
of the City. If any such Certificate or coupon shall have
matured or be about to mature, instead of issuing a substi-
tuted Certificate or coupon, the City may pay the same, upon
being indemnified as aforesaid, and if such Certificate or
coupon be lost, stolen or destroyed, without surrender thereof.
Any such duplicate Certificates
pursuant to this section shall constitute
al
contractual obligations on the part of
and coupons issued
original, addition -
the City, whether
or not the lost, stolen or destroyed Certificates or coupons
be at any time found by any one, and such duplicate Certif-
icates and coupons shall be entitled to equal and proportion-
ate benefits and rights as to lien and source and security
for payment from the Revenues of the ?rater System with all
8
other Certificates and coupons issued hereunder.
10. FORM OF CERTIFICATES A D COUPOFS . •The text
of the Certificates and coupons shall be of substantially
the following tenor, with such omissions, insertions and
variations as may be necessary and desirable and authorized
or permitted by this Ordinance, or any subsequent ordinance
or resolution adopted prior to the issuance thereof;
No. UNITED STATES OF AMERICA
STATE OF FLORIDA
CITY OF OKEECHOBEE
WATER REVENUE CERTIFICATE
$1,000
KNOW ALL MEN BY THESE PRESENTS That the City of
Okeechobee, in Okeechobee County, Florida, for value receiv-
ed, hereby promises to pay to the bearer, or, if this Cer-
tificate be registered, to the registered holder as herein
provided, on the lst day of December, 19 , from the reven-
ues hereinafter mentioned, the principal sum of
ONE THOUSAND DOLLARS
with interest thereon at the rate of four and one -half per
centum per annum payable semi- annually on the 1st day of
June and the lst day of December of each year upon the pre-
sentation and surrender of the annexed coupons as they sever-
ally fall due. Both principal of and interest on this Cer-
tificate are payable in lawful money of the United States
of America at the principal office of the
Chase National Bank of the City of New YorK, New York
This Certificate is one of an authorized issue of
Certificates in the aggregate principal amount of $50,000 of
like date, tenor and effect, except as to number and date
of maturity, issued to finance the cost of the construction
or acquisition of improvements, extensions and additions to
the eater system owned and operated by the City of Okeechobee
under the authority of and in full compliance with the Con-
stitution and Statutes of the State of Florida, the Charter
of the City of Okeechobee, being Chapter 8318, Acts of the
Legislature of Florida for the year 1919, as amended and
supplemented, and other applicable statutes, and an Ordinance
duly adopted by the City Council of said City, and is subject
to all the terms and conditions of said Ordinance.
This Certificate and the coupons appertaining there
to are payable solely from and secured by a lien upon and
10
pledge of the net revenues derived from the operation of the
water system of the City of Okeechobee, in the manner pro-
vided in the Ordinance authorizing this issue of. Certificates
and does not constitute an indebtedness of the City of
Okeechobee within the meaning of any constitutional, statutory
or charter provision or limitation, and it is expressly agreed
by the holder of this Certificate that such holder shall
never have the right to require or compel the exercise of
the taxing power of said City for the payment of the prin-
cipal of and interest on this Certificate or the snaking of
any sinking fund, reserve or other payments provided for in
the Ordinance authorizing this issue of Certificates.
It is further agreed between the City of
Okeechobee and the holder of this Certificate that this Cer-
tificate and the obligation evidenced thereby shall not con-
stitute a lien upon the City's water system, or any part there
of, or any other property of or in the City of Okeechobee,
but shall constitute a lien only on the net revenues derived
from the operation of said water system in the manner pro-
vided in said Ordinance.
The City in said Ordinance has covenanted and agreed
with the holders of the Certificates of this issue to fix
and establish and maintain such rates and collect such fees
or other charges for the services and facilities of its water
system, and to revise the same from time to time whenever
necessary, as will always provide revenues sufficient to pay,
and out of said revenues shall pay, as the same shall become
due, the principal of and interest on the Certificates of
this issue, in addition to paying, as the same shall become
due, the necessary expenses of operating and maintaining said
water system, all reserves or sinking funds or other payments
provided for in said Ordinance, and all other obligations
payable out of the revenues of said water system, and that
such rates, fees or other charges shall not be reduced so as
11
to be insufficient to provide revenues for such purposes,
and said City has entered into certain further covenants
with the holders of the Certificates of this issue for the
terms of which reference is made to said Ordinance.
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 Certi-
ficate, exist, have happened and have been performed in
regular and due form and time as required by the statutes
and Constitution of the State of Florida applicable thereto,
and that the issuance of this Certificate, and of the issue
of Certificates of which this Certificate is one, does not
violate any constitutional, statutory or charter limitation.
This Certificate, and the coupons appertaining
thereto, is, and has all the qualities and incidents of, a
negotiable instrument under the law merchant and the Negoti-
able Instruments Law of the State of Florida, and the orig-
inal holder and each successive holder of this Certificate,
or of the coupons appertaining thereto, shall be conclusive-
ly deemed by his acceptance thereof to have agreed that this
Certificate and the coupons appertaining thereto shall be
and have all the qualities and incidents of negotiable in-
struments under the law merchant and the Negotiable Instru-
ments Law of the State of Florida. The original holder and
each successive holder Jf this Certificate, and of the coupon,
appertaining thereto, shall be conclusively deemed to have
agreed and consented to the following terms and conditions;
(a) Title to this Certificate, unless registered
as herein provided, and to the annexed interest coupons, may
be transferred by delivery in the manner provided for negoti-
able Instruments payable to bearer under the law merchant
and in the Negotiable Instruments Law of the State of Florida ■
(b) Any person in possession of this Certificate,
12
unless registered as herein provided, or of the interest
coupons hereunto appertaining, regardless of the manner in
which he shall have acquired possession, is hereby authorized
to represent himself as the absolute owner thereof, and is
hereby granted power to transfer absolute title thereto by
delivery thereof to a bona fide purchaser, that is to any one
who shall purchase the same for value (present or antecedent)
without notice of prior defenses or equities or claims of
ownership enforceable against his transferrer; every prior
taker or owner of this Certificate, unless registered as
herein provided, and of the annexed interest coupons, waives
and renounces all of his equities and rights therein in favor
of every such bona fide purchaser, and every such bona fide
purchaser shall acquire absolute title thereto and to all
rights represented thereby; and
(c) The City of Okeechobee, Florida, may treat the
bearer of this Certificate, unless registered as herein pro-
vided, or of the interest coupons hereunto appertaining as
the absolute owner thereof for all purposes without being
affected by any notice to the contrary.
This Certificate may be registered as to principal
only, or as to both principal and interest in accordance
with the provisions endorsed thereon.
IN WITNESS a'1IEREOF said City of Okeechobee, Florida,
by its City Council, has issued this Certificate and has causes
the same to be signed by its Mayor, countersigned by the
President of the City Council and its corporate seal to be
affixed hereto and attested by its City Clerk, and has caused
the interest coupons hereto attached to be executed with the
fac simile signatures of all of said officers, all as of the
1st day of December, 1947.
(Seal) CITY OF OKEECHOBEE, FLORIDA,
Attest: By
City Clerk
13
Countersigned:
Mayor
President, City Council
No.
FORM OF COUPON
On the 1st day of
$22.50
, 19 , the City of
Okeechobee, Florida, will pay to the bearer at the principal
office of the Chase 1Vational Bank of the City of New York, hew York
from the revenues described in the Certificate to which this
coupon is attached, the sum of Twenty Two and 50/100 Dollars
($22.50) in lawful tniney of the United States of America,
upon presentation and surrender of this coupon, being six
months interest then due on its Water Revenue Certificate,
dated December 1, 1947, No.
Attest: CITY OF OKEECHOBEE, FLORIDA,
By
City Clerk Mayor
Countersigned:
President, City Council
(FORM OF VALIDATION CERTIFICATE)
Validated and confirmed by decree of the Circuit
Court of the Ninth Judicial Circuit of Florida, in and for
Okeechobee County, rendered on the day of
19 .
Clerk of the Circuit Court of
Okeechobee County, Florida.
(PROVISION FOR REGISTRATION)
This Certificate may be registered in the name of
the holder on the books to be kept by the City Clerk as
Registrar, or such other Registrar as may hereafter be duly
appointed, as to principal only, such registration being
noted hereon by said Registrar in the registration blank be-
low after which no transfer shall be valid unless made on
said books by the registered holder or attorney duly author-
ized and similarly noted in the registration blank below,
but it may be discharged from registration by being trans-
ferred to bearer, after which it shall be transferable by
delivery but it may be again registered as before. The
registration of this Certificate as to principal shall not
restrain the negotiability of the coupons by delivery merely
but the coupons may be surrendered and the interest made
payable only to the registered holder, in which event the
Registrar shall note in the registration blank below that thi
Certificate is registered as to interest as well as principal
14
and thereafter the interest will be remitted by mail in New
York exchange to the registered holder. Vitt the consent
of the holder and of the City of Okeechobee this Certificate,
when converted into a Certificate registered as to both prin-
cipal and interest, may be reconverted into a coupon Certi-
ficate and again converted into a Certificate registered as
to both principal and interest as hereinabove provided. Upon
reconversion of this Certificate when registered as to prin-
cipal and interest into a coupon Certificate, coupons re-
presenting the interest to accrue upon the Certificate to
date of maturity shall be attached hereto by the Registrar
and the Registrar shall note in the registration blank below
whether the Certificate is registered as to principal only
or payable to bearer.
Date of In Whose Name Registered Manner of Signatu; e
Registration Registration cf Registrar
11. CERTIFICATES NOT TO 13E INDEBTEDP ESS OF THE CITY.
Neither the Certificates nor coupons shall be or constitute
an indebtedness of the City, but shall be payable solely from
the Revenues of the Water System as herein provided. No holc.-
er or holders of any Certifiicate issued hereunder, or of any
coupon appertaining thereto, shall ever have the right to
compel the exercise of the taxing power of the City to pay
said Certificates or the interest thereon, or be entitled to
payment of such principal and interest from any other funds
of the City except the net Revenues of the Water System as
provided herein.
12. CERTIFICATES SECURED LY PLEDGE OF REVENUES.
The payment of the debt service of all of the Certificates
issued hereunder shall be secured forthwith equally and rat-
ably by an exclusive lien on the net Revenues derived from
the City's Water System, subject only to the payment of oper-
ating expenses as in Section 14 herein provided. The net
Revenues derived from said Water System in an amount sufficient
to pay the principal of and interest on the Certificates here
in authorized, and to make the payments into the reserve and
sinking funds and all other payments provided for in this
Ordinance, are hereby irrevocably pledged to the payment of
the principal of and interest on the Certificates herein au-
thorized as the same become due.
13. APPLICATIO1 OF CERTIFICATE PROCEEDS All
moneys received from the sale of any or all of the w50,000
Certificates originally authorized and issued pursuant to this
Ordinance shall be deposited by the City in a special account
and shall be used for and applied by the City solely to the
payment of the cost of the construction or acquisition of
the improvements, extensions and additions to said Water Sys-
tem, and purposes incidental thereto, authorized by this Or-
dinance, and for no other purpose whatsoever. If for any
reason such proceeds, or any part thereof, are not necessary
for, or are not applied to, such purposes, then such unap-
16
plied proceeds shall be deposited by the City in the Sink-
ing Fund to be estalbished pursuant to subsection D of Sec-
tion 14 of this Ordinance and shall be used to pay interest
on and principal of the Certificates. All such proceeds
shall be and constitute a trust fund for such purposes and
there is hereby created a lien upon such money, until so ap-
plied, in favor of the holders of the Certificates.
14. COVEMATTS OF THE CITY. So long as any of
the Certificates shall be outstanding unpaid, or until there
shall have been set apart in tine Sinking Fund herein establ-
ished a sum sufficient to pay, when due, the entire principal
of the Certificates remaining unpaid, together with interest
accrued and to accrue thereon, the City covenants with the
holders of any and all of the Certificates issued pursuant
to this Ordinance as follows:
A. RATES :(1) That the City will fix, establish
and maintain such rates and collect such fees or other charges•
for the services and facilities of its Water System, and re-
vise same from time to time whenever necessary, as will al-
ways provide Revenues sufficient to pay, in the manner spec-
ified in Section 14 of this Ordinance, and out of said Rev-
enues shall pay, as the same shall become due, the principal
of and interest on the Certificates, in addition to paying,
as the same shall become due, the necessary expenses ofoper-
ating and maintaining such Water System, all reserve or
sinking funds or other payment provided for in this Ordinance,
and all other obligations or indebtedness payable out of the
Revenues of such Water System, and that such rates, fees,
rentals and other charges shall not be reduced so as to be
insufficient to provide Revenues for such purposes.
(2) That the City will tontine in force and effect
its current minimum charge of 4;2.50 per month for each user
of the services and facilities of the Water System and will
not reduce or terminate such minimum charge so long; as the
17
Revenue derived therefrom, together with other Revenues of
the Water System, are required to pay, ir the manner pro-
vided in Section 14 of this Ordinance, as the same shall be-
come due, the principal of and interest on the Certificates,
in addition to paying, as the same shall become due, the nec
esssry expenses of operating and maintaining said ; Tater Sys-
tem, all reserve or sinking funds or other payments provided
for in this Ordinance, and all other obligations or indebt-
edness payable out of the Revenues of said Water System.
R. REVENUE FUND. That the entire gross Revenues
derived from the operation of said Water System shall be de-
posited in a special fund in a bank or trust company satis-
factory to the original purchaser of the Certificates from
the City; or in the event of the sale of all of said Cer-
tificates by the original purchaser, then in a bank or trust
company in the State of Florida which is eligible under the
state laws
which fund
Said Water
to receive deposits of State and municipal funds,
is hereby designated as the "'grater Revenue Fund ".
Revenue Fund shall constitute a trust fundfor
the purposes provided in this Ordinance and shall be kept
separate and distinct from all other funds of the City and
used only for the purposes and in the manner provided in
subsection D of this Section 14.
C. OPERATION AND MAII TTNANCE. That it will main-
tain in good condition said Water System and will operate
the same in an efficient and economical manner, making such
expenditures for equipment and for renewal, repair and replac
ment as may be proper for theeconomical operation and main-
tenance thereof from the Water Revenue Fund.
D. DISPOSITION OF REVENUES. That all Revenues at
any time remaining on deposit in the Water Revenue Fund shall
be disposed of in the following order and manner:
(1) Revenues shall first be used for the payment
of all current operating expenses of the Tater System includ-
ing, without limitation, administrative expenses properly
18
chargeable to the "Dater System, cost of materials and sup-
plies, insurance, necessary cost of repairs and all other
costs and expenses of maintenance, operation and upkeep.
(2) From the moneys remaining in the Water Revenue
Fund the City shall not later than the first day of May and
the first day of November in each year, beginning with May 1,
1948, apportion and set apart out of the Water Revenue Fund
and deposit in a fund to be known as the "Water Revenue Cer-
tificate Sinking Fund ", which is hereby established, such
sums as will be sufficient to pay one -half of all the prin-
cipal and interest on the Certificates issued hereunder which
shall mature and become due within such year.
The City shall also from moneys remaining in said
Water Revenue Fund deposit in a Reserve Account in said Water
Revenue Certificate Sinking Fund on the first day of May and
the first day of November of each year an amount equal to
fifty per centum of all other amounts required to be paid
for maturing principal and interest into said Water Revenue
Certificate Sir_king Fund, as provided in the above paragraph,
on said dates; provided, however, that no further payments
shall be required to be made into said Reserve Account as
long as there shall be on deposit therein an amount equal to
the maximum aggregate amount of the principal of and interest
on the Certificates which mature in any two succeeding con-
secutive calendar years.
Moneys in the Reserve Account may be invested in
direct obligations of the United States or must otherwise
be maintained in cash.
Moneys in said Reserve Account shall be used only
for the purpose of the payment of maturing principal of or
interest on the Certificates when the other moneys in the
Water Revenue Certificate Sinking Fund are insufficient
therefor, and for no other purpose.
The City shall not be required to make any further
19
payments into said Water Revenue Certificate Sinking Fund
or into the Reserve Account in said Water Revenue Certificate
Sinking Fund when the aggregate amount of funds in both said
Water Revenue Certificate Sinking Fund and said Reserve Ac-
count are at least equal to the aggregate principal amount
of Certificates issued pursuant to this Ordinance then out-
standing, plus the amount of interest then due or thereafter
to become due on said Certificates then outstanding.
(3) Thereafter Revenues shall be used to establish
and set up a Renewal and Replacement Fund and the City shall
pay into said fund from the Water Revenue Fund on the first
day of May of each year beginning with May 1, 1948, an amount
which shall be equal to five per centum of the gross Reven-
ues actually received and collected for the services and
facilities of said Water System during the preceding year,
less the aggregate amount actually expended during such pre-
ceding year for maintenance of said Water System pursuant to
subsection D (1) of Section 14 of this Ordinance. The funds
in such Renewal and Replacement Fund shall oe used only for
the purpose of paying the cost of extensions, improvements
or additions to, or the replacement of capital assets of said
Water System or any part thereof.
(4) If on any semi - annual payment date the Rev-
enues are insufficient to place the required amount in any
of the Funds as hereinbefore provided, the deficiency shall
be made up in the subsequent payments in addition to the
payment which would otherwise be required to be made into
the Funds on the subsequent payment dates.
(5) Thereafter, the balance of any Revenues re-
maining after all other required payments into the Funds pro-
vided above have been made, may in the discretion of the City
be used for additional reserves for future operating expenses
capital additions, including the purchase of equipment, depos
ited in the Water Revenue Certificate Sinking Fund, or in any
other manner provided by law.
20
(6) The Water Revenue Certificate Sinking Fund
and the Reserve Account therein, the Renewal and Replacement
Fund, and all other special funds set up and created by this
Ordinance shall constitute trust funds for the purposes pro-
vided herein for such Funds, and shall oe deposited and main-
tained in the same bank or trust company in which the Water
Revenue Fund is maintained. All of such funds, including the,
Water Revenue Fund, shall be continuously secured in the same
manner as State and municipal deposits of funds are required
to be secured by the laws of the State of Florida.
E. SALE OF r�'RE WATER SYSTEiv . That said Water
System may be sold, mortgaged, leased or otherwise disposed
of only as a whole or substantially as a whole, and only if
the net proceeds to oe realized shall oe sufficient fully to
retire all of the Certificates issued pursuant to this Or-
dinance and all interest thereon to their respective dates
of maturity. The proceeds from such sale, mortgage, lease
or other disposition of said Water System shall immediately
be deposited in the Water Revenue Certificate Sinking Fund
and shall oe used only for the purpose of paying the prin-
cipal of and interest on the Certificates issued pursuant to
this Ordinance as the same shall become due. After all of
such principal and interest shall have been duly paid and re-
tired any oalance remaining in said fund shall be remitted to
the City.
The foregoing provision notwithstanding, the City
shall have and hereby reserves the right to sell, lease or
otherwise dispose of any of the property comprising a part
of said Water System hereafter determined in therranner pro-
vided herein to be no longer necessary, useful or profitable
in the operation thereof. Prior to any such sale, lease, or
other disposition of said property, if the amount to be re-
ceived therefor is not in excess of five thousand dollars
(5,0O0), the general manager or other duly authorized of-
21
ficer in charge of such Water System shall make a finding,
in writing, determining that such property comprising a part
of such Water System is no longer necessary, useful or prof-
itable in the operation thereof, and such proceeds shall be
deposited in the Renewal and Replacement Fund and used only
as provided herein for such fund. If the amount to be re-
ceived from such sale, lease or other disposition of said
property shall be in excess of five thousand dollars (5,000
but not in excess of twenty -five thousand dollars (25,000),
the general manager or other duly authorized officer in
charge of such Water System shall first make a finding, in
writing, determining that such property comprising a part of
such Water System is no longer necessary, useful or profitab
in the operation thereof, and the governing body of said Cit
shall, by resolution duly adopted, approve and concur in the
finding of the general manager or other duly authorized of-
ficer, and authorize such sale, lease or other disposition
of said property. The proceeds derived from any such sale,
lease or other disposition of said property, in excess of fi
thousand dollars (5,000) and not in excess of twenty -five
thousand dollars (25,000) shall be placed in the Water Rev -
enue Certificate Sinking Fund provided for in this Ordinance,
and shall be used only for the purchase of Certificates at
price not greater than par and accrued interest. Such pay-
ment of such proceeds into the Water Revenue Certificate
Sinking Fund or the Renewal and Replacement Fund shall not
reduce the amounts required to be paid into said Funds by
other provisions of this Ordinance.
—
Igo sale, lease or other disposition of the prop-
erties of said Water System shall be made by the City if the
proceeds to oe derived therefrom shall be in excess of twent
five thousand dollars ( 2b,000), and insufficient to pay all
of the principal of Certificates then outstanding and all
interest thereon to their respective dates of maturity, with
out the prior approval and consent, in writing, of the iold-
ers or their duly authorized representatives, of sixty -six
and two - thirds per centum (66 2/30 in amount of Certificates
then outstanding. The City shall prepare the form of such
approval and consent for execution by Certificateholders, or
their duly authorized representatives, which form shall pro-
vide for the disposition of the proceeds of the sale, lease
or other disposition of such properties of such Water System.
F. ISSUANCE OF OTHER O3LIGATIO1N'S RAYA:3LE OUT OF
REVETUES. That the City will not issue any other obligations
except upon the conditions and in the manner provided herein,
payable from the Revenues derived from the operation of said
Water System, nor voluntarily create or cause to be created
any debt, lien, pledge, assignment, encumbrance or any other
charge, having priority to or being on a parity with the lien
of the Certificates issued pursuant to this Ordinance, and
the interest thereon, upon any of the income and Revenues of
said Water System pledged as security therefor in this Or-
dinance. Any other obligations issued by the City in additicn
to the Certificates authorized by this Ordinance shall con-
tain an express statement that such obligations are junior
and subordinant in all respects to the Certificates issued
pursuant to this Ordinance as to lien and source and security
for payment from the Revenues of the Water System.
G. INSURANCE. That the City will carry such in-
surance as is ordinarily carried by private corporations own-
ing and operating similar utilities as the City's Water Sys-
tem, with a reputable insurance carrier or carriers against
loss or damage by fire, explosion, hurricane, earthquake, cy-,
clone,occupancy or other hazards and risks, which insurance
shall at all times be in an amount or amounts equal to the
fair appraisal value of the buildings, properties, furniture,
fixtures and equipment of said Water System. In time of war,
the City shall also carry in said amount such insurance as
23
may be available against loss or damage by the risks and
hazards of war.
H. BOOKS AND RECORDS. That the City will keep
books and records of said Water System which shall be separ-
ate and apart from all other books, reoordsa^ accounts of
the City, in which complete and correct entries shall be
made of all transactions relating to said Water System, and
any holder of a Certificate or Certificates issued pursuant
to this Ordinance shall have the right at all reasonable
times to inspect said Water System and all parts thereof, an
all records, accounts and data of the City relating thereto.
The City shall, at least once a year, cause the
books, records and accounts of said Water System to be prop-
erly audited oy a competent auditor, and shall mail, upon
request, and make available, the report of said auditor at
all reasonable times to any holder or holders of Certificates
issued pursuant to this Ordinance, any taxpayer or citizen
of said City, or any person, receiving services from said
Water System, or anyone acting for and in behalf of such tax-
payer, citizen, or Certificateholder or Certificateholders.
I. MAINTE NANCE OF WATER SYSTEM. That the City
will complete the construction or acquisition of the improve-
ments, extensions and additions to said Water System author-
ized by this Ordinance with all practicable dispatch, and
thereafter will maintain said Water System in good condition
and continuously operate the same in an efficient manner and
at a reasonable cost.
J. SERVICES RENDERED TO THE CITY. That the City
will not render or cause to be rendered any free services
of any nature by its :'Dater System, nor will any preferential
rates be established for users of the same class; and in the
event that the City, or any department, agency, instrumental-
ity, officer or employee thereof, shall avail itself of the
facilities or services provided by said Water System, or any
24
part thereof, the same rates, fees or charges applicable to
other customers receiving like services in similar circum-
stances shall be chargea the City and any such department,
agency, instrumentality, officer or employee. Such charges
shall be paid as they accrued, and the City shall transfer
from its general funds sufficient sums to pay such charges.
The Revenues so received shall be deemed to be Revenues de-
rived from the operation of the Water System, and shall be
deposited and accounted for in the same manner as other Rev-
enues derived from the operation of the Water System.
K. OPERATING BUDGET. That the City shall annuall
at least forty -five days preceding each of its fiscal years,
prepare and adopt by resolution of its governing body a de-
tailed budget of the estimated expenditures for operation
and maintenance of its Water System during such succeeding
fiscal year. No expenditures for the operation and mainten-
ance of said Water System shall be made in any fiscal year
in excess of the amounts provided therefor in such budget
without a written finding and recommendation by the general
manager of such Water System or other duly authorized of-
ficer in charge thereof, which finding and recommendation
shall state in detail the purpose of and necessity for such
increased expenditures for the operation and maintenance of
said later System, and no such increased expenditures shall
be made until the 4overning body of said City shall have ap-
proved such finding and recommendation by a resolution duly
adopted. The City shall mail copies of such annual budget
and all resolutions authorizing increased expenditures for
operation and maintenance to any holder o• holders of Cer-
tificates who shall file his address with the City and re-
quest in writing that copies of all such budgets and resolu-
tions be furnished him or them, and shall make available such
budgets and all resolutions authorizing increased expenditure
for operation and maintenance of said ';later System at all
reasonable times to any holder or holders of Certificates
2
issued pursuant to this Ordinance, any taxpayer or citizen
of said City, or any person receiving services from said
Water System, or anyone acting for or in behalf of such tax-
payer, citizen, or Certificateholder or Certificateholders.
L. RETJMEDIES. Any holder of Certificates or of any
coupons pertaining thereto, issued under the provisions of
this Ordinance, or any Trustee acting for such Certificate -
holders in the manner hereinafter provided, may, either at
law or in equity, by suit, action, mandamus or other pro-
ceeding in any court of competent jurisdiction, protect and
enforce any and all rights under the laws of the State of
Florida, or granted and contained in this Ordinance, and
may enforce and compel the performance of all duties requirei
by this Ordinance or by any applicable statutes to be per-
formed by the City or by any officer thereof, including the
fixing, charging and collecting of rates, fees and charges
for the services and facilities of said Water System.
In the event that default shall be made in the pay-
ment of the interest on or the principal of any of the Cer-
tificates issued pursuant to this Ordinance as the same shall
become due, or in the making of the payments into any reserve
or sinking fund or any other payments required to be made by
this Ordinance, or in the event that the City or any officer,
agent or employee thereof shall fail or refuse to comply with
the provisions of this Ordinance, or shall default in any
covenant made herein, and in the further event that any such
default shall continue for a period of thirty days, any hold-
er of such Certificate, or any Trustee appointed to represent
Certificateholders as hereinafter provided, shall be entitled
as of right to the appointment of a receiver of said Water
System in an appropriate judicial proceeRing in a court of
competent jurisdiction, whether or not such holders or Trust-
ee is also seeking or shall have sought to enforce any other
right or exercise any other remedy in connection with Ger-
26
tificates issued pursuant to this Ordinance.
The receiver so appointed shall forthwith, directly
or by his agents and attorneys, enter into and upon and take
possession of said Water System, and each and every part
thereof, and shall hold, operate and maintain, manage and
control such Water 6/stem, and each and every part thereof,
and in the name of the City shall exercise all the rights
and power of the City with respect to said Water System as
the City itself might do. Such receiver shall collect and
receive all Revenues, maintain and operate such Water Sys-
tem in the manner provided in this Ordinance, and comply
under the jurisdiction of the court appointing such receiver
with all of the provisions of this Ordinance.
Whenever all that is due upon Certificates issued
pursuant to this Ordinance, and interest thereon, and under
any covenants of this Ordinance for reserve, sinking or
other funds, and upon any other obligations and interest
thereon, having a charge, lien or encumbrance upon the Rev-
enues of said Water System, shall have been paid and made
good, and all defaults under the provisions of said Ordinance
shall have been cured and made good, possession of said Water
System shall be surrendered to the City upon the entry of an
order of the court to that effect. Upon any subsequent de-
fault, any holder of Certificates issued pursuant to this Or-
dinance, or any Trustee appointed for Certificateholders as
hereinafter provided, shall have the same right to secure the
further appointment of a receiver upon any such subsequent
default.
Such reciver shall in the performance of the powers
hereinabove conferred upon him be under the direction and sup
ervision of the court making such appointment, shall at all
times be subject to the orders and decrees of such court and
may be removed thereby and a successor receiver appointed in
the discretion of such court. Nothing herein contained shall
27
limit or restrict the jurisdiction of such court to enter
such other and further orders and decreesas such court may
deem necessary or appropriate for the exercise by the receiver
of any function not specifically set forth herein.
Any receiver appointed as provided herein shall hold
and operate such Water System in the name of the City and for
the joint protection and benefit of the City and holders of
Certificates issued pursuant to this Ordinance. Such receiv-
er shall have no power to sell, assign, mortgage or otherwise
dispose of any assets of any kind or character belonging or
pertaining to such ','later System, out the authority of such
receiver shall be limited to the possession, operation and
maintenance of such Water System for the sole purpose of the
protection of both the City and Certificateholders, and the
curing and making ppod of any default under the provisions
of this Ordinance, and the title to and ownership of said
Water System shall remain in the City, and no court shall
have any jurisdiction to enter any order or decree permit-
ting or requiring such receiver to sell, mortgage or other-
wise dispose of any assets of said Water System, except as
provided in subsection 14 (E) hereof.
The holder or holders of Certificates in an aggre-
gate principal amount of not less than twenty -five per century
of Certificates issued under this Ordinance then outstanding
may by a duly executed Certificate in writing appoint a trust-
ee for holders of Certificates issued pursuant to this Ordi-
nance with authority to represent such Certificateholders in
any legal proceedings for the enforcement and protection of
the rights of such Certificateholders. Such Certificate
shall be executed by such Certificateholders or their duly
authorized attorneys or representatives, and shall be filed
in the office of the City Clerk.
Y. ENFORCEMENT OF COLLECTIONS. That the City
will diligently enforce and collect such fees, rates or other
charges for the services and facilities of said "later System,
28
and take all steps, actions and proceedings for the enforce-
ment and collection of such fees, rates or other charges which
shall become delinquent to the full extent permitted or auth-
orized oy the Charter of said City, and by the laws of the
State of Florida.
15. MODIFICATION OR Aiw'Ia DMENTT . No material mod-
ification or amendment of this Ordinance or of any ordinance
or resolution amendatory hereof supplemental hereto, may
be made without the consent in writing of the holders of
two - thirds or more in principal amount of the Certificates
then outstanding, provided, however, that no modification or
amendment shall permit a change in the maturity of such Cer-
tificates or a reduction in the rate of interest thereon, or
in the amount of the principal obligations or affecting the
unconditional promise of the City to pay the principal of and
interest on the Certificates as the same shall come due from
the Revenues of said Water System, without the consent of
the holder of such Certificates.
16. SEVERABILITY OF INVALID PROVISION. If any
one or more of the covenants, agreements or provisions of
this Ordinance should be held contrary to any express pro-
vision 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 in no way affect the validity of all the
other provisions of this Ordinance or of the Certificates or
coupons issued thereunder.
17. ISSUANCE A1'TD SALE OF CE tTIFICATEi . That said
;50,000 Water Revenue Certificates, dated December 1, 1947,
authorized to oe issued by this Ordinance area hereby sold
and awarded to Thomas N. Cook & Company at a price of ninety -
five and accrued interest, and the City Clerk, after the val-
29
f
idation of said Certificates, is hereby authorized and dir-
ected to deliver said Certificates to Thomas I. Cook 8- Com-
pany, upon payment of the aforesaid purchase price, either
all at one time, or in blocks from time to time as the pro-
ceeds thereof are required for the payment of the cost of
acquisition or construction of the improvements, additions
and extensions to the Water System.
18. That G. C. uurrance
Attorney at Law, be and he is hereby authorized and directed
to institute appropriate proceedings in the Circuit Court
of the Ninth Judicial Circuit of Florida, in and for
Okeechobee County, Florida, for the validation of said Cer-
tificates, and the proper officers of the City are hereby au-1
thorized to verify on behalf of the City any pleadings in
such proceedings.
19. That it is necessary for the immediate pres-
ervation of the public peace, health, prosperity and safety
of the City of Okeechobee and its inhabitants that the im-
provements, extensions and additions to the City's Water
System authorized herein be made with the least possible de-
lay, and this Ordinance is hereby declared to be an emergency
measure and shall take effect upon its passage.
Attest:
City Clerk esident of the City Council
60
Approved by me this s day
of a-� Lw�-' , 1948 .
Mayor
THEREUPON said ordinance was read in full and carefully
considered by said City Council.
Councilman ..radag(�seaonded the motion for
the passage and adoption of said Ordinance.
THEREUPON Z. H. Williams, Presidend of said City Council,
presiding, called for a vote upon the motion for passage and
adoption of said Ordinance, and the following vote was had
thereon:
Z. H. WILLIAMS
PRESIDUT CITY COUNCIL
ALTO WATFORD
DALTON BRETT
ROD CHANDLER L ( . 6
B. W. THOMAS
MEMBERS CZTi CODICIL
THEREUPON the presidend of said city council declared
said ordinance regularly passed and adopted as an ORDINANCE
of the city of Okeechobee, Florida, and the same was duly
signed by H. H. Baulerson, Mayor of Okeechobee, Florida;
Z. H. Williams, President of said city council and attested
by Lorena Pearce, Clerk of the city of Okeechobee, Florida.
There being no further business coming before the said
city council, the city oouneil was adjourned.
8101 or mune.,
COUNTY OF OKEECHOBEE:
I., Lorena Pearce, duly elected, qualified and acting Clerk
of the city of Okeechobee, Florida, do hereby certify that
the above and foregoing is a full, true and correct copy of
excerpts of the minutes of a regular meeting held by the
city council of the city of Okeechobee, Florida, as the same
appears in the minute book of said city of Okeechobee, Florida.
IN WITTNESS WHEREOF, I have ereunto set my hand nthas
' and
official seal of said city, of
the day of January, I 9 ve lS.
CITY aLERK