Res 923-54 RESOLUTION NO. 923_
A RESOLUTION PROVIDING FOR THE ISSUANCE OF
$100~000 SPECIAL TAX REVENUE CERTIFICATES
OF THE CITY OF DELRAY BEACH, FLORIDA, FOR
THE PURPOSE OF REFUNDING CERTAIN OUTSTAND-
ING SPECIAL TAX REVENUE CERTIFICATES OF
SAID CITY AND FOR TBE PURPOSE OF PAYING
THE COST OF MAKING IMPROVEMENTS TO THE
MUNICIPALLY O~NED GOLF COURSE OF SAID CITY,
CONFIRMING THE SALE, AND PROVIDING FOR THE
SECURITY AND PAYMENT THEREOF, AND MAKING
CERTAIN COVENANTS AND AGREEMENTS IN THAT
CONNECTION.
WHEREAS, the City of Delray Beach has heretofore issued
and delivered $42,000 Special Tax Revenue Certificates dated
August 1, 1950, payable from the proceeds of the hereinafter
described tax on utilities services, of which certificates to
the amount of $30,000 are outstanding, being certificates
numbered 13 to 42 inclusive; and
WHEREAS, certificates numbered 13 to 16, inclusive, will
have matured on August 1, 1954; and
WHEREAS the city desires to refund the remainder of said
certificates, being certificates numbered 17 to 42, inclusive,
and said certificates will be available for payment and can-
cellation at the time of delivery of the certificates ~e rein-
after authorized; and
W"EEREAS the city desires to make improvements to the
municipally owned golf course of said city and the city does not
have fUnds available for the payment of the cost of such improve-
ments and desires to finance such cost through the issuance of
the certificates for which provision is hereinafter made; and
'~EREAS, pursuant to the provisions of Ordinance Number 535
adopted by the City Council on July 9, 1945, as amended by
Ordinance Number 567, adopted on January 28, 1946, and as amended
by Ordinance Number G-105 adopted on September 8, 1950, the city
has been since August 15, 1945, imposing and collecting a tax
on every purchase of electricity, bottled gas (natural or manu-
factured), and local telephone service in the city; and
~AS in order to secure the payment of the certificates
hereinafter authorized, the city desires to pledge thereto the
proceeds of the above described tax on utilities services; and
~EREAS the aforesaid revenues to be derived from said
tax will be a~ply sufficient to pay principal of and ~nterest on
such certificates, there beins outstanding no obligations payable
from such revenues except the $30,000 outstanding certificates
hereinabove described, end such revenues for the pest three fis-
ca_l years having been as follows:
Utilities Tax Proceeds
Fiscal Year Ending
Sept ember 30 ,,, Amount
1951 B6,725.20
1952 897.96
and
~t~EREAS under the decisions of the Supreme Court of Florida
and the general powers imposed in the city under the p~visions
of its charter and the general laws of Florida, the city is
authorized to issue special tax revenue certificates in the
manner and payable from the special fund for which provision
is hereinafter more specifically made:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Delray Beach, Florida, as follows:
Section 1. That the City of Delray Beach (hereinafter
sometimes referred to as the "city") make improvements to the
municipally owned golf course of said city.
Section 2. That for the purpose of paying the cost of
such improvements, and for the purpose of refunding $26,000
Special Tax Revenue Certificates of sa~ d city now outstanding,
dated August l, 1950, being certificates numbered l? to 42,
inclusive, including all expenses properly incident thereto and
to the issuance of the certificates, there are hereby authorized
to be issued the Special Tax Revenue Certificates of the city
in the aggregate principal amount of ~100,000. Said certificates
shall be dated August l, 1954, shall be in the denomination of
$1,000 each, shall be numbered i to 100, inclusive, and shall
bear interest at the rate of 3% per annum from date until paid
payable February l, 1955 and semi-annually thereafter on the
first days of August and February of each year. The certificates
shall be payable as to both principal and interest in lawful
money of the United States of ~merica at '~~~'~ ~ ~
Florida, and shall mature serially in numerical order on August
1 of each year of the yea~s as follows:
Certificate Numbers Amount ~ear
i to l0 $10,000 1955
ll to 20 10, O00 1956
21 to 30 10,000 1957
31 to 40 lO, O00 1958
5~lto 10,000 1959
50
to 60 10,000 1960
61 to 70 10,000 1961
8O
10, 000
~11 to 1962
to 90 10,000 1963
91 to 100 10,000 1964
Certificates numbered 51 to 100, inclusive, shall be call-
able for redemption prior to maturity at the option of the city
on August 1, 1959, and on any interest payment date thereafter
in inverse numerical order, at the principal amount thereof plus
accrued interest to the date fixed for redemption. Notice of
such call for redemption is to be given by publication of an
appropriate notice one time in a newspaper or financial journal
of general circulation published in the City of Miami, Florida,
not less than thirty days prior to the date fixed for redemption.
Section 3. That the certificates shall be signed by the
Mayor of the City, countersigned by t~e City Clerk, shall be
endorsed by the City Attorney, and shall have impressed thereon
the corporate seal of the city. Interest falling due on the
certificates on and prior to maturity thereof shall be represent-
ed by appropriate interest coupons to be attached to the cer-
tificates, which coupons shall be executed with the facsimile
signatures of the Mayor and the City Clerk.
Sect..ion 4. That the certificates and the coupons to be
attached thereto and the endorsement to appear on the back
thereof shall be in substantially the following form:
(Form of Certificate)
UNITED STATES OF AMERICA
STATE OF FLORIDA
COUNTY OF PALM BEACH
CITY OF DEW~AY BEACH
SPECIAL TAX REVENUE CERTIFICATES
Number $1,000
The City of Delray Beach, in Palm Beach County, Florida,
for value received hereby promises to pay to bearer, solely
from the special fund provided therefor as hereinafter set
forth, tb~ sum of One Thousand Dollars ($1,000) on the first day
of August, 19__, and to pay f~om said special fund interest
thereon at the rate of three per cent (3%) per annum from date
hereof until paidt payable February 1, 1955 and semi-annually
thereafter on the first days of February and August of each year,
with interest due on and prior to maturity hereof payable only
upon presentation and surrender of the annexed interest coupons
as they severally become due. Both principal hereof and interest
hereon are payable in lawful money of the United States of
America at , in the City of
, Florida.
This certificate is one of an issue numbered 1 to 100, in-
clusive, of like date and tenor except as to option of redemp-
tion, issued pursuant to the Constitution and Laws of Florida
and a resolution adopted by the City Council of said city on
June ...... , 1954, for the purpose of paying the cost of re-
funding Special Tax Revenue Certificates of said city dated
August 1, 1950 and for the purpose of making improvements to the
municipally owned golf course of said city. This certificate
and the issue of which it is a part are payable solely from and
secured by the first pledge of the revenues to be received from
the proceeds of the tax imposed by the city cn the purchase of
electricity, bottled gas (natural or manufactured), and local
telephone service pursuant to Ordinance Number 535 adopted on
July 9, 1945, as amended.
This certificate, including interest hereon, is payable
solely from the aforesaid revenues and does not constitute an
indebtedness of the City of Delray Beach 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 ad valorem taxing power of said city or the
taxation or assessment of real estate in said city for the pay-
ment of the principal of o~ interest on this certificate, or the
making of any sinking fund, reserve or other payment required in
the aforesaid resolution. It is further agreed between said
city and the holder of this certificate that this certificate
and the obligation evidenced thereby shall not constitute a lien
upon any property of or in the city, but shall constitute a lien
only on the revenues in the above paragraph described. For a
more complete statement of the sources of payment of such cer-
tificates, and a statement of the rights, duties and obligations
of the city and the rights of the holders of the certificates,
reference is made to the aforesaid resolution, to all the pro-
visions of which resolution the holder hereof by the acceptance
of this certificate assents.
Certificates numbered 51 to 100~ inclusive, of the issue
of which this is one are callable for redemption prior to
maturity at the option of the city on August l, 1959, and on any
interest payment date thereafter, in inverse numerical order,
at the principal amoulit thereof plus accrued interest to the
date fixed for redemption. Notice of such call for redemption
is to be given by publication of an appropriate notice one time
in a newspaper or financial Journal of gmmeral circulation pub-
lished in the City of Miami, Florida, not less than thirty days
prior to the date fixed for redemption.
Each successive holder of this certificate and of the
coupons hereto attached is conclusively presumed to forego and
renounce his equities in favor of subsequent holders for value
without notice and to agree that this certificate and each of
the coupons hereto attached may be negotiated by delivery by
any person having possession thereof, howsoever such possession
may have been acquired, and that any holder who shall have take~
this certificate or any of the coupons from any person for value
and without notice thereby had acquired absolute title thereto,
free from any defenses enforceable against any prior holder and
free from all equities and claims of ownership of any such prior
holder. The City of Delray Beach shall not be affected by any
notice to the contrary.
It is hereby certified and recited that all acts, condi-
tions and things required by the Constitution and Laws of
Florida and by the charter of the city to happen, exist and be
performed precedent to and in the issuance of this certificate
have happened, exist and have been performed as so re~aired.
I_N _WITNESS. NMEREOF, the City of Delray Beach has caused
this certificate to be executed by its Mayor and countersigned
by its City Clerk, with the corporate seal of said city hereunto
affixed, and has caused the interest coupons hereto attached to
be executed by said officials by their facsimile signatures, all
as of this first day of August, 1954.
'' ~ayor
Countersigned: Approved:
'" C'i't~' Clerk ..... City Attorney
(Foxpro of Coupon)
Numb e tlS. O0
On the first day of . , 19 , unless the
hereinafter mentioned certificate is then redeemable and has been
called for redemption and provision for the redemption thereof
duly made, the City of Delray Beach, Palm Beach County, Florida,
will pay to bearer, solely from the special fund referred to in
such certificate, the sum of Fifteen and No One HUndredths Dollars
($15.00) in lawful money of the United States of America at
............ , in the City of _ ., ,
Florida, being the semi-annual interest then d~e on its Special
Tax Revenue Certificate dated August 1, 1954, and numbered . .
Countersigned:
city Clerk
(Form of Validation Certificate)
Validated and confirmed by decree of the Circuit Court
of the Fifteenth Judicial Circuit in and for Palm Beach County,
Florida, rendered on the _ .... day of _ . , 1954.
C'ler~ Of 't~e Circuit OouYt' '
Palm Beach County, Florida
Sect_ion ~. That there is hereby created for the purpose
of paying principal of and interest on the certificates herein
authorized and establishing and maintaining a reserve for such
purpose a fund to be known as the "Special Tax Revenue Certifi-
cates Sinking Fund", which is hereinafter in this resolution
sometimes referred to as the "Certificate Fund". Such fund
other bank of equal standing ~d rating as may hereafter be
specified by the City Council, The money held in said fund shall
be held by said depositary as a special and not a general deposit
and as a special trust fund the beneficial interest in which
shall be in the holders from time to time of the obligations
payable therefrom. All money in such fund shall be continually
secured by the deposit of collateral security having a market
value at all times of rmt less than the amount on deposit in such
fund and shall be otherwise secured to the fullest extent re-
quired by the laws of Florida for the secuming of public deposits~
'~- Beginning in August, 1954, there shall be paid into the
Certificate Fund from day to day as collected so much of th~ pro-
ceeds of the excise tax levied and imposed by the city under the
provisions of Ordinance Number 535, as adopted by the City
Council on July 9, 1945, as amended on January 28, 1946, and on
September 8, 1950, and as amended at any time prior to the
issuance of the certificates hereunder, upon every purchase of
electricity, bottled gas (natural or manufactured), and local
telephone service (herein called the "utilities service tax"),
while any of the certificates herein authori~.ed remain outstand-
lng and unpaid, as may be necessary to pay promptly as they fall
due principal of and interest on the certificates herein auth-
orized and to accumulate and maintain as a reserve for s~ch
payment in addition to current principal and interest require-
merits the sum of $ 0 ~a)~O~,.~o _ which reserve shall be fully
accumulated by _ /-~ _ ~ ~ ~, 19.$___5. Money in the
reserve shall be used whenever the remaining money in the Cer-
tificates Fund is not sufficient to pay principal or interest
falling due and as to which there would be a default if the
money were not so used. Any payment made from the reserve to
prevent default shall be promptly restored thereto so that as
nearly as possible there may at all times be preserved as a
reserve against defaults the minimum sum above specified. The
money in the reserve may also be used for the payment of prin-
cipal and interest at any time when the money in the reserve,
together with the ether money in the Certificate Fund is suffi-
cient to pay principal of and interest to maturity on all cer-
tificates then remaining outstanding.
It shall be the duty of the depositary of the Certificate
Fund to transmit to the paying agent bank not later than July 15
of each year an amount taken from the Certificate Fund which
will be sufficient to pay p~incipal of and interest on the
certificates due on the succeeding August 1 and interest on the
certificates falling due on the succeeding February 1.
Ail or any part of the money in such reserve shall at the
request of the city be invested in direct obligations of the
United States of America or other marketable securities eligible
as secu.~ity for the deposit of trust funds under ~egulations
of the Board of Governors of the Federal Reserve System. Any
obligations so purchased as an investment shall be obligations
maturing or subject to redemption by the holder thereof, at the
option of such holder, not later than twelve months after the
date of such investment. It shall not be necessary for the
depositary to give security for the deposit of any money with it,
which is represented by obligations so purchased as an investment.
Obligations so purchased shall be deemed at all times to be a
part of the reserve and the interest accruing thereon and any
profit realized from such investment shall be credited to the
reserve. The depositary shall sell at prevailing market prices
or shall present for redemption any obligations so purchased
whenever it shall be necessary so to do in order to provide
money to meet any payment of transfer from the fund in which such
obligations are held. Neither the depositary, the paying agent
nor the city shall be liable or responsible for any loss~'result-
ing from any such inves__tme__nt.
Section 6. That the City of Delray Beach hereby covenants
and agrees with each successive holder of the certificates
issued hereunder:
(a) That it will not repeal or decrease the utilities
service tax while any of the certificates herein authorized
remain outstanding and that it will continue the imposition
and collection of the proceeds of such tax until all of the
'
certificates have been retired, and will pay into the Cer-
tificate Fund such part of the proceeds thereof as may be
required hereunder. The city expressly covenants and repre-
sents that it has legal and valid power to impose and collect
such tax and that there is by the adoption of this resolution
and delivery of the certificates to the purchasers thereof
and the payment for such certificates by such purchasers,
vested in such purchasers and in the subsequent holders of
such certificates a contract right to the imposition, collec-
tion and proper application or, the utilities service tax
which will continue unimpaired until all of the certificates
have been paid in full, which contract right between the city
and such holders is not subject to repeal, impairment or
modification by the city o~ by the legislature of the State
of Flori da.
(b) That while any of the Special Tax Revenue Certificates
issued hereunder shall be outstanding, the city will not
issue any additional obligations payable from the revenues
pledged to the payment of the certificates herein authorized,
(c) That all records of the city with respect to the
amounts received by the city in each year from the utilities
service tax and the disposition made of all such revenues
shall be available for inspection at all reasonable times
by the holders of any of the certificates issued hereunder,
and that the city will within sixty days following the close
of each fiscal year supply to any holder of the certificates
who may have so requested a written statement covering the
receipt and disposition of such revenues during such fiscal
yeare
Section 7. That the sale of certificates herein authorized
to the Grimes Foundation of Urbana, Ohio, at the ~rice of par
and accrued interest to the date of delivery is hereby ratified
and confirmed. The proceeds received f~m the sale of the cer-
tificates herein authorized to the extent of $26,000 shall at
the time cf delivery be applied to the payment of the certifi-
cates herein authorized to be refunded and said certificates
shall be immediately cancelled. The remainder of the proceeds
of the sale of the certificates herein authorized (with the
exception of accrued interest together with any money which may
be on deposit in the Special Tax Revenue Certificates Sinking
Fund established for the benefit of the outstanding certificates
being refunded which shall be deposited at the time of delivery
into the Certificate Fund) shall be applied to the remaining
purposes for which the certificates are herein authorized. The
payment of interest accrued on said outstanding Special Tax
Revenue Certificates and on the new certificates shall be handled
in such manner that no overlapping interest is paid by reason of
the refunding transaction.
Sec~tion 8. That the City Attorney is hereby authorized and
directed to take appropriate proceedings in the Circuit Court
of the Fifteenth Judicial Circuit of Florida, in and for ?aim
Beach County, for the validation of said certificates, and the
Mayor and City Clerk are authorized to sign any pleadings in such
proceedings for and in behalf of the City Council of the City of
Delray Beach.
Sec.tion 9. That if any section, paragraph, clause or pro-
vision of this resolution shall be held to be invalid or un-
enforceable for any reason, the validity or unenforceability of
such section, paragraph, clause or provision shall not affect any
of the remaining provisions of this resolution.
Section 10. That this resolution shall be in full force
and effect immediately upon its adoption.
Adopted and approved ~.~.~.~,,a~ ~..~, . . , 1954.
Mayor
Atte
The above resolution and the form of Special Tax Revenue
Certificate and coupon therein contain~are hereby approved
as to form and correctness this ~C~day of ~~, , 1954.
WAIVER OF PUBLICATION NOTICE
WHEREAS, the City of Delray Beach has as outstanding
$50,000.00 Special Tax Revenue Certificates, commonly referred
to as the 1954 Golf Fund Issue,
AND WHEREAS, the City of Delray Beach is empowered to
call for redemption prior to maturity certificates numbered
51 to 100 on August 1, 1959 or any other interest payment date
thereafter in inverse numerical order, at the principal amount
thereof plus accrued interest to the date fixed for redemption
in accordance with Section 2 of Resolution No. 923,
AND WHEREAS notice of such call for redemption is to be
given by publication of an appropriate notice one time in a
newspaper or financial journal of general circulation published
in the City of Miami, Florida, not less than thirty days prior
to ~e date fixed for redemption,
AND WHEREAS the Grimes Foundation is ~e sole holder of
the above herein referred to certificates,
NOW THEREFORE do I, Warren G. Grimes, acting for and in
behalf of the Grimes Foundation do hereby wiave said published
notice to permit the City of Delray Beach to redeem certificates
numbered 51 through 100 plus accrued interest on February 1, 1960.
Warren G. Grimes