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Res 761-50 Delray Beach, Florida June 30th , 1950 The City Council of the City of Delray Beach, Palm Beach County, Florida, met in d~tly called Special session at the regular meeting place of the Council in the City Hall in the City of Delray Beach, at 1:30 o,clock P .M. on June 30th , 1950, with John N. Kabler __, Mayor, present and presiding. There were also present: R. J. Holland , Councilman Walter A. Roth , Councilman · Councilman · Councilman · Councilman Ruth R. Smith , City Clerk . . , City Manager ~1~ Moo~s ......... , City Attorney After the minutes of the preceding meeting had been read and approved, the following resolution was introduced in written form by City Attorney John Moore , was read in full and duly discussed, after which, pursuant to motion made by Councilman Roth and seconded by Counoi~an Holland the resolution was adopted by the following vote: Aye: Mayor Kabler C ouncilma$ Holland Councilman Roth ay. None The resolution was thereupon signed by the Mayor in open session in token of his approval, and was ordered recorded by the Clerk in the Resolution Book, and is as follows: RESOLUTION NO. 761 A RESOLUTION PROVIDING FOR THE ISSUANCE OF $42,000 SPECIAL TAX REVEN~E CERTIFICATES OF S~ ~ THE CITY OF DELRAY BEACH, FLORIDA, FOR THE PURPOSE OF CONSTRUCTING IMPROVE~NTS TO THE ~ MUNICIPALLY 0~NED GOLF COURSE AND GOLF COURSE FACILITIES OF SAID CITY, PROVIDING FOR THE SALE, SECUL,~ITY AND PAYMENT THEREOF, AND MAKING CERTAIN COVENANTS AND AGREEMENTS IN THAT CONNECTION. WHEREAS, the City of Delray Beach now owns and operates a golf course and golf course facilities, which golf course and ts facilities have become inadequate for the needs of the city and i inhabitants and it is, thsrefore, necessary to make improvements thereto at an estimated cost of $42,000; and WHEREAS, the city does not have funds available for the payment of the cost of such improvements and desires to finance such cost through the issuance of the certificates for which pro- vision is hereinafter made; and WHEREAS, 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, the city has been since August 15, 1945, imposing and collecting a tax on every purchase of electricity, bottled gas (natural or manufactured), and local telephone service in the city; and WHEREA.~, in order to secure the payment of the certifi- cates hereinafter authorized, the city desires to pledge thereto the proceeds of the above described tax on utilities services; and -2- WHEREAS, the aforesaid revenues to be derived from said tax will be amply sufficient to pay principal of and interest on such certificates, there being outstanding no obligations payable from such revenues and such revenues for the past three fiscal years having been as follows: Utilities Tax Proceeds Fiscal Year ending Sept.emb.er 30 Amount 1947 $20,363.81 1948 25,284.22 1949 29~833.33 and WHE. REAS., under the decisions of the Supreme Court of Florida and the general powers imposed in the city under the pro- 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: NON, 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 some times referred to as "the city") improve its golf course and golf course facilities. Section 2. That for the purpose of paying the cost of such improvements, including all expenses properly incident thereto and to the issuance of the certificates, there are hereby authorizec to be issued the Special Tax Revenue Certificates of the city in the aggregate principal amount of $42,000. Said certificates shall -3- be dated August l, 1950, shall be in the denomination of $1,000 each, shall be numbered I to 42, inclusive, and shall bear interest at the rate of 3% per annum from date until paid, payable semi- annually 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 America at the office of the City Clerk in the City Hall in the City of Delray Beach, Florida, and shall mature serially in numerical order on August 1 of each of the years as follows: Certificate Numbers Amount Year I to 4 $4,000 1951 5 to 8 4,000 1952 9 to 12 4,000 1953 13 to 16 4,000 1954 17 to 20 4,000 1955 21 to 24 4,000 1956 25 to 30 6,000 1959 31 to 36 6,000 1958 37 to 42 6,000 1959 Certificates numbered 13 to 42, inclusive, shall be call- able for redemption prior to maturity at the option of the city on August 1, 1953, 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 the City Clerk, shall be endors ed by the City Attorney, and shall have impressed thereon the corporate seal of the city. Interest falling due on the certifi- cates on and prior to maturity thereof shall be represented by appropriate interest coupons to be attached to the certificates, which coupons shall be executed with the facsimile signatures of the ~ayor and the City Clerk. Section 4. That the certificates and the coupons to be thereto attached and the endorsement to appear on the back thereof shall be in substantially the following form: (Form of Certificate) UNITED STATES OF A~ERICA STATE OF FLORIDA COUNTY OF PAL~,'I BEACH CITY 0~' DELRAY BEACH SPEC IAL TAX REVEhUJE CERTIFICATE 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 the sum of One Thousand Dollars ($1,000) on the first day of August 19 .... , and to pay from said special fund interest thereon at the rate of t_hree per cent (3%) per annum from date hereof until paid, payable semi-annually 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 the office of the City Clerk in the City Hall in the City of Delray Beach, Florida. -5- This certificate is one of an issue numbered 1 to 42, inclusive, issued pursuant to the Constitution and Laws of Florida and a resolution adopted by the City Council of said city on June 30th , 1950, for the purpose of paying the cost of improving the municipally owned golf course and golf course facilities 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 f~om the proceeds of the tax imposed by the city on 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 in- debtedness 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 exer- cise of the ad valorem taxing power of said city or the taxation or assessment of real estate in said city for the payment of the principal of or 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 evi- denced thereby shall not constitute a lien upon any property of or in the city, but shall constitute a lien only on the revenues -6- in the above paragraph described. For a more complete statement of the sources of payment of such certificates, 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 afore- said resolution, to all the provisions of which resolution the holder hereof by the acceptance of this certificate assents. Certificates numbered 13 to 42, inclusive of the issue of which this is one are callable for redemption prior to matumity at the option of the city on August l, 1953, 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. 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 taken 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. -7- 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 required. IN WITNESS WHEREOF, 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 af- fixed, 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, 1950. Mayor Countersigned: Approved: Cfty Cl~rk City Attorney (Form of Coupon) Number $ 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 (~ ) in lawful money of the United States of America at the office of the City Clerk in the City Hall of the City of Delray Beach, Florida, being interest then due on its Special Tax Revenue Certificate dated August l, 1950, and numbered . :cunt e rs igned: · Mayor City Clerk (Ferm 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 , 1950. Clerk of the Circuit Court, Palm Beach County, Florida ~/g/~, Section 5. That there is hereby created for the purpose of paying principal of and interest on the certificates herein au- thorized and establishing and maintaining a reserve for such pur- pose a fund to be known as the "Special Tax Revenue Certificates Sinking Fund", which is hereinafter in this resolution sometimes referred to as the "certificate fund". Such fund shall be kept on deposit in The First National Bank in the City of Delra¥ Beach , Florida, or in such other bane of equal standing and 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 deoosit collateral security having a market value at all times of not less than the amount on deposit in such fund and shall be otherwise secured to the fullest extent required by the laws of Florida for the securing of public deposits. All of the money received by the city from the excise tax levied and imposed by the city under the provisions of 0rdi- nance Number 535, as adopted by the City Council on July 9, 1945, a amended on January 28, 1946, as amended at any time prior to the issuance of the certificates hereunder, upon every purchase of -9- electricity, bottled gas (natural or manufactured), and local tele- phone service (herein called the "utilities service tax"), while any of the certificates herein authorized remain outstanding and unpaid, shall be placed by the city in the certificate fund as such money is received, and all money so received is hereby irrevocably pledged to the payment of principal of and interest on the certificates. It shall be the duty of the depositary of the certificate fund to transmit to the City Clerk not later than July 15 of each year an amount taken from the certificate fund which will be sufficient to pay principal of and interest on the certificates due on the succeeding August i and interest on the certificates falling due on the succeeding February 1. There shall be reserved in the certificate fund at all times the sum of $4,000 as a reserve. Money in the reserve shall be used whenever the remaining money in the certificate fund is not sufficient to pay the principal and interest falling due and there would be a default in the payment of such principal andinter- est if the money were not so used. Any payment made from the reserve to prevent such a default shall be promptly restored there- to so that as nearly as possible there may at all times be preserved as a reserve against principal and interest defaults the sum of $4,000. On June 15, 1953, and on the fifteenth day of June of each year thereafter, all money in the certificate fund in excess of such reserve and in excess of the amount required to pay principal and interest falling due in the next succeeding calendar year shall be applied to the nearest $1,000 to the retirement of such of these certificates as are subject to redemption. Such retirement may be made from such surplus -10- through the purchase of certificates on the open market at the best price or prices obtainable not in excess of the principal amount thereof and accrued interest to the date fixed for redemption. The depositary shall transmit to the City Clerk on January 18, and July 10, 1953, and on the fifteenth day of January and July of each year thereafter until the certificates have been redeemed, in addition to funds for the payment of principal and interest as above pro- vided, funds for the payment of principal of the certificates which are to be so redeemed. Section 6. That the City of Delray Beach hereby covenan s 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 authori~ed 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 certificate fund such part of the proceeds thereof as may be required hereunder. The city expressly covenants and represents that it has legal and valid power to impos~ 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, col~ction and proper application of 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, impair~nent or modification by the city or by the legislature of the State of Florida. (b) That while any of the Special Tax Revenue Certifi- -ll- cates 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 year. Section 7. That the certificates herein authorized may be sold at public or private sale for such price or prices as the City Council shall deter~nine, provided the interest cost to maturit~ of the money received for said certificates shall not exceed five per cent per annum. Section 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 Palm 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. Section 9. That if any section, paragraph, clause or provision of this resolution shall be held to be invalid or unen- forceable 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. -12- Section 10. That this resolution shall be in full force and effect immediately upon its adoption. Adopted and approved June 30th , 1950. .× Mayor Attest: Ci~ty Cler~ The above resolution and the forms of Special Tax Revenue Certificate and coupon therein contained are hereby approved as to form and correctness this ,~0th day of June , 19S0. ~f jj City Att y (Other business) There being no further business to come before the City Council, upon motion duly made and carried, the Council adjourned. Attest: City Clerk JAC:mlm STATE OF FLORIDA ) COUNTY OF PALM BEACH ) I, .... ?Uth R. Smith .., do hereby certify that I am the duly qualified and acting City Clerk of the City of Delray Beach, Palm Beach County, Florida. I further certify that the above and foregoing con- stitutes a true and correct copy of the minutes of a meeting of the City Council of said city, held on the 30th day of June , 1950, and of a resolution adopted at said meeting, as said min- utes and resolution are officially of record in my Possession. IN WITNESS ~HEREOF, I have hereunto subscribed my official signature and affixed the seal of said city this 30th day of ., Jun.,e , 1950. ~ · Clerk ' ' ( SEAL ) J C:ffj 6/2?/5O -14-