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06-28-54SpMtg JUNE 28, 1954 A Special Meeting of the' City Council of the City of Delray Beach was held in the Council Chambers at 7:30 P.M. with Mayor Catherine E. Strong in the Chair, City Manager W. E. Lawson, City Attorney Neil MacMillan, and the following Council members present: Glenn G. Sundy, R. J. Holland, Mrs. Alma K. Woehle, and N. Cottingham Allen, a quormm being present. The City Attorney read the following resolution, prepared by Chapman and Cutler pursuant to request of the City Council: 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 OUTSTANDING SPECIAL TAX REVENUE CERTIFICATES OF SAID CITY AND FOR THE PURPOSE OF PAYING THE C(S T OF MAKING IMPROVhMENTS TO THE MUNICIPALLY OWNED GOLF COURSE OF SAID CITY, CONFIRMING THE SALE, AND PROVID- ING FOR THE SECURITY AND PAYMENT THE.~EOF, AND MAKING CERTAIN COVENANTS AND AGREEMENTS IN THAT CONNECTION. ~HEREAS, the City of Delray Beach has heretofore issued and delivered $42,000 ~pecial Tax Revenue Certificates dated August l, 1955, payable from the proceeds of t~he 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 l, 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 availabl~ for payment and can- cellation at the time of delivery of the certificates herein- after authorized; and WHEREAS the city desires to m~ke improvements to the municipally owned golf course of said city and thc 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 provision 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 25, 1946, and as amended by Ordinance Number G-105 adopted on September 8, 1950, the city has been sinceAugust 15, 1945, imposing and collecting a tax on every ~urchase of electricity, bottled gas (natural or manufactured), and local telephone service in the city; and ~E~REAS in order to secure the payment of the certificates hereinafter authorized, the city desires to pledge thereto the proceeds of the above described tax~en utilities services; and ~tEREAS 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 except the ~30,000 outstanding certificates hereinabove described, and such revenues for the past three fiscal years having been as follows: Utilities Tax Proceeds Fiscal Year Ending ~SSeptember S0 Arno un_____~.t 1951 ~36,725.20 1952 42,897.96 1953 49,158.58 111 j~s 28, 1954 and WHEREAS under the decisions of the Supreme Court ~ Florida and the general powers imposed in the city under the provisions of its charter and the general laws of Florida, the city is authorized to issue special tax revenue certiricates in the manner and payable from the special fund for which provisions 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 some6imes ~eferred to as the "city") make improvements to the 'municipally owned golf course of said city. S..e.ction 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 said city now outstanding, dated August .1, 1950, being certificates numbered 17 to 42, inclusiwe, including all expenses properly incident thereto and to the issuance of the certificates, there are hereby authorized to be issued the Special Tax Revende Certificates of the cit~ in the aggregateAPrincipal amount of $100,000. Said certificates shall be dated ugust 1, 1954, shall be in the denomination of ~l,000 each, shall be numbered 1 to 100, inclusive, and shall bear interest at the rate of 3% per annum from date until paid, payable February 1, 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 America at First National Bank of Delray Beach, in the City of Delray Beach, Florida, and shall mature Serially in numerical order on August 1 of each year of the years as follows: Certi~i cate Numbers Amount Year i to l0 ~10,000 1955 11 to 20 10,000 1956 21 to 30 10,000 1957 31 to 40 10,000 1958 41 to50 10,000 1959 to 60 10,000 1960 61 to 70 10,000 1961 71 to 80 10,000 1962 81 to 90 10,000 1963 91 to 100 10,000 1964 Certificates numbered 51 to 100, inclusive, shall be callable 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 $ournal of general circulation published in the City of Miami, Florida, not less than thirty days prior to the date fixed for redemption. Sed$ion 3~ That the certificates shall be signed by the Mayor' 6~ the Cit~, countersigned by the City Clerk, shall be endorsed by the City ~ttorney, 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 co~pons shall be executed with the facsimile signatures of the Mayor and the City Clerk. 28, 1954 Section 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 Certificates) UNITED STATE, OF ~MERICA STATE 0 F FLORIDA COUNTY OF PALM BEACH CITY OF DELRAY BEACH SPECIAL TAX REVENUE CERTIFICATES Numb er ~l, 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 p~ovided 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 three per cent (3%) per annum from date hereof until paid, 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 Unit ed States of America et ...... , in the City of , F'lorida" This certificate is'one of an issue numbered 1 to 100, inclusive, of like date and tenor except as to option of redemption, issued pursuant to t he Constitution and L~ws of Florida and a resolution adopted by the City Council of said city on June ___, 1954, for the purpese of paying the cost of refunding ~ecial Tax Revenue Certificates of said city dated August 1, 1950 and for the purpose of ~king improvements to the municipally owned golf course of said city. This cer- tificate and the issue of which it is a part are payable solely from and secured by the' first pledge of the revenues to be re- ceived fr~m the proceeds pf the tax i.mposed by the city on the purchase of electricity, bottled gas (natural of manufactured) and local telephone service pursuant to Ordinance Number 535 adopted on July 9, 1945, as amended. This certificate, including interest thereon, 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 limita- tion, 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 payment of the principal of or interest on this certificate, or the making of any sinking fund, ~eserve bm 6ther payment re- quired in the aforesaid resolution. It is further agreed between said city and the holder of this certificate that this certificateand the obligation evidenced thereby shall not con- stitute a lien only on the revenues in the above paragraph described. For a more concrete statement of the sources of paymenb~ of such certificates, and a statement~of· the rights, duties and obligations ef the city and the rights of the holders of the certificates, reference is made to the aforesaid reso- lution, to all the provisions 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 113 28, 1954 maturity at the option of the city on August 1, 1959, ar~ 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 tc be given by publication of an appropriate notice one time in a newspaper or financial Journal of general 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 cou- pons attached hereto is conclusively presumed to forego and renounce his equities in favor of subsequent holders for value without notice and to agree that this certi£1cate 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 ~his c.ertificate 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 affe~cted 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 ~ave been performed as so required. IN ~ITNESS ~HEREOF, the City of Delray Beach has caused this certificate to be executed ~y its Mayor and countersigned by its City Clerk, with the corporate seal of said city here- unto 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. Mayor Countersigned: Approved: City Clerk City Attorney ~Form of Coupon) Numb er ------- ~15 · 00 On the first day ~ ....... ,19_.., unless the herein- after mentioned certificate i~ 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 sem~-annual interest then due on its Special Tax Revenue Certificate dated August l, 1954, and numbered . Mayo Count&r signed: City Clerk J NE 28, 1954 (Form of Validation Certificate) Validated and confirmed by decree of the Circuit Court of the Fifteenth Judicial Circuit in and for Palm ~each County, Florida, ra~ dered on the ----_-. day of , 1954. Clerk of the Uircuit-C~urt Palm Beach County, Florida Section ~. 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 Cer- tificates Sinking Fund', which is hereinafter in this resolu- tion sometimes referred to as the "Certificate Fund". Such fund shall be kept on deposit in First National Bank in the City of Delray Beach, Florida, or in such other bank of equal standing and r'ating as may hereafter be specified by the ~tty 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 not less than the amount on deposit in such fund rand shall be otherwise secured to the fullest extent required by the laws of Florida for the securing cf public deposits. Beginning in August, 1954, there shall be paid into the Certificate Fund from day to day as collected so much of the proceeds 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 ~anuary 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 authorized remain outstanding and unpaid, as may be necessary to pay promptly as they fall due principal af~ ~and interest on the certificates herein authorized and to accumulate and maintain as a reserve for such payment in addition to current principal and interest requirements the sum of ~5,000.00 which reserve shall be fully accumulated by August 1st, 1955. Money in the reserve shall be used whenwver the remaining money in the Certificate Fund is not sufficient to pay principal or interest falling due and as to which there would be a default if the momey 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 de- faults the minimum sum above specified. The money in the reserve may also be used for the payment of principal and interest at any time when the money in the reserve, together with the other money in the Certificate Fund is sufficient to pay principal of and interest bo maturity on all certificates then remaining out standing. 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 principal of and interest on the certificates due on the succeedirg August i and interest on the certificates falling due on the succeeding February 1. 115 JUNE 28, 1954 All 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 security for the deposit of trust funds under regulations of the Board of Governors of the Federal Reserve Syste~. Any obligations ao purchased as an investment shall be obligations maturing or subject to redemption by the holder thereof, at the option of such holder, not later t~an twelve months after the date of such investment. It shall not be n~$cessary 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 deposieary shall sell at prevailing market prices or shall present for redempti~ 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- lng from any such investment. Section 6. That the City of Delray Beach hereby covenants and agrees with each successive holder of the certificates is sue d 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'~ontinue 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 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 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, impairment or modification by the city or by the legislature of the State of Florida. (b) That while any of the Special Tax Revenue Certificates issued hereunder shall be outstanding, the city will not issue any additional obligations payable fro~ 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 ser1~Ice 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 followirg the close of each fi sca~ 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 ye ar. Section ~. That the sale of certificates herein authorized to the Grimes Foundat~.on of Urbana, Ohio, at the price of par and accrued interest to the date of delivery is hereby ratified and confirmed. The pz, oceeds received from the sale of the 28, 1954 certificates herein authorized to the extent of $26,000 shall s~ the time of delivery be applied to the payment of the certifi- cates herein authorized to be refunded and said certificates shall be in~nediately cancelled. The remainder of the proceeds of the sale of the certificates h~ein 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. ~ection 8. Thatthe City Attorney is hereby authorized and directed "~"o ~ake~"~appropriate proc eedings 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, clauser or provision of this resolution shall be held to be invalid or unenforceable for any reason, the validity or unenforceability of such secti on, paragraph, clause or provision shall not affect any of the remaining provisions of this resolution. ~Sect~ion 10. That this resolution shall be in full force and effect immediately upon its adoption. Adopted and approved June 28th, 1954. /s/ Catherine E. Strong Ma yo r Attest: /s/ R. D. Worthing City C ler~k SEAL The above resolution and the form of Special Tax Revenue Certificate and coupon therein contained are hereby approved as to form and correctness this 28th day of June, 1954. /s/ Nell E. MacMillan City Attorney Mrs. Woehle asked if the resolution would make any changes in the utility tax rate and Mr. MacMillan replied that it would not. Following discussion and upon motion of Councilman Holland, seconded byCouncilman Allen, the resolution was adopted. Upon call of roll Mayor Strong and Council members Sundy, Holland, and Allen voted in favor of the rosolution and Mrs. ~oehle voted opposed. The City Attorney then read the following ~ amendment to OrelLinance No. 535: 117 JUNE 28, 1954 AN AMENDMENT TO ORDINANCE NO. 535 OF THE CITY OF DELRAY BEACH, FLORIDA, AS HERETOFORE AMENDED BY ORDINANCE NO. 567 AND ORDINANCE NO. G-105, LEVYING A TAX ON PURCHASES OF ELECTRICITY, BOTTLED GAS AND LOCAL TELEPHONE SERVICE. After discussion a motion was made by Councilman Sundy that the ordinance be placed on first reading. The motion was seconded by Councilman allen and upon call of roll Mayor Strong and Councilmen Sundy, Holland, and Allen voted in favor of the ordinance and Mrs. Woeb_le voted opposed. Upon motion of Councilman Allen, seconded by Councilman Sundy, it was resolved that the following notice be published in the Delray Beach Journal: NOTIC E Notice is hereby given that the City Council of the City of Delray Beach, Florida, on at the City Hall in said city at the hour of o'clock _.M., will consider for final passage an ordinance passed on first reading on June 28, 1954, .and entitled: "An OrdinaD~e amending Ordinance No. 535 of the City of Delray Beach, Florida, as heretofore amended by Ordinance No. 567, and Ordinance No. G-105, leving a tax on purchases of electricity, bottled gas and local telephone service". At t~e aforesaid time and place, or at any time and place to which such hearing may he adjourned, said ordinance shall be read in full and after such reading all persons interested shall be given an opportunity to be heard. Given by order of the City Council of the City of Delray Beach, this day of June, 1954. /s/ Catherine E. Strong Mayor Attest: /s/ R.D. Worthing City Clerk Upon call of roll the motion carried, Mayor Strong and Council- men Sundy, Holland, and Allen voting in favor of the motion and Mrs. Woehle voting opposed. There being no further business the meeting adjourned. APP ROVED: ATTEST: -- Mayor ....