06-30-50SpMtg JUNE 30, th, 1950
Upofi call of the Mayor a Special?meeting of the
City Council of the City of Delray Beach was held in the City
Manager's office at 1:30 p. m. with Mayor John N. Kabler in the
Chair, and City Manager Charles E. Black, City Attorney John
Moore, and thefollowing Councilmen present: R. J. Holland,
and Walter Roth, a quorum being present.
The following Resolution, providing for the issuance
of $ 42,000.00 Golf Course Revenue Certificates, was presented
by the City Attorney, who explained that the Resolution had been
approved by Chapman and Cutler of Chicago, Bond Attorneys, He
also stated that under the City Charter the Certificates must
be retired within ten years from the date the Charter became
a law, therefor redemption would start in 1951 and end in
1959, and would be callable after 1953 in inverse numerical
order, on any interest paying date, at par and accrued interest.
RESOLUTION NO. V61
A RESOLUTION PROVIDING FOR THE ISSUANCE
OF 4 42,000.00 SPECIAL TAX REVENUE CERTIFICATES OF THE
CITY OF DELRA¥ BEACH, FLORIDA, FOR THE PURPOSE
OF CONSTRUCTING IMPROVEMENTS TO THE MUNICIPALLY OWNED
GOLF COURSE AND GOLF COURSE FACILITIES OD SAID CITY,
PROVIDING FOR THE SALE, SECURITY AND PAYMENT
THEREF0, AND MAKING CERTAIN COVENANTS AND AGREEMENTS
IN THAT CONNECTION.
WHEREAS, the City of Delray Beach now owns and operates
a Goli~ Course an~ golf coures facilities, which golf
course and facilities have become inadequate for the
needs of the City and it~nhabitants and it is, therefore,
necessar~j 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 provision is hereinafter made; and
WHEREAS, pursuant to the provisions of Ordinance Number §38
and ad~Pted by the City Council on July 9, 1945, as
amended by Ordinance No. §6V, adopted on January 28, 1946,
the City has been since August 15, 1945, imposing and
collecting a tax on ever~ purchase of electricity,
bottled gas, (natural or manufactured), and local telephone
service in the City: and
WHEREAS, in order to secure the payment of the certificates
h~i-n'~ter authorized, the City desires to pledge thereto
the proceeds of the above described tax on utilities
services; and
WHEREAS, thebaforesaid revenues to be derived
from said tax will be amply sufficient to pay principal
of and interest on such certificates, there being outstand
lng no obligations payable from such revenues for the
past three fiscal years having been as follows:
Utilities Tax Proceeds
Fiscal year ending
September 30 Amount
194V $ 20,363.81
1948 25,284.22
1949 29,833.33
and
WHEREAS,under the decisions of the Supreme
Court' of Florida and the general powers ira-
posed in the City under the provisions of
its Charter and the general laws of Florida,
the Cityts authorized to issue special tax rev-
enue certificates in the manner and payable from a
special fund for which provision is hereinafter
more specifically made:
N0Wt THEREFORE~ BE IT RESOLVED by the City
"gob~cil of 'the "City o£ DelraY Beach, Florida,
as follows:
SECTION 1 That the City of Delray Beachg~ hereinaftersome 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 theretoand 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 $ 42,000
Said certificates shqll be dated August l, 1980, shall
be in the denomination of $ 1,O00 each, shall be
numbered 1 to 42, inclusive, and shall bear
interest at the rate of 3% per annum from the date
until paid, ~ayable 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~_~df
the City Clerk in the City Hall in the City
of Delray Beach, Florida , and shall mature
6/30/50
serially in numerical order on August 1 of each year
as follows:
Certificate Numbers Amount Year
I to 4 $ 4000 1951
5 to 8 4000 1952
9 to 12 4000 1953
13 to 16 4000 1954
17 to 20 4000 1955
21 to 24 4000 1956
25 to 30 6000 1957
31 to 36 6000 1958
37 to 42 6000 1959
Certificates numbered 13 to 42, inclusive, shall
be callable for redemption prior to maturity at the
option of the City on August l, 1953, and on any inter-
est payment date thereafterin 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 appro-
priate 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
0'r the City, countersigned by the City Clerk, s~ll be
endorsed by the City Attorney, and shall have L~?ressed
thereon the corporate seal of the City. Interest falling
due on the certificates on and prior to 'maturity thereof
shall be represented by appropriate interest coupons to be a
attached to the certificates, which coupons shall be
executed with th facsimile signatures of the Mayor and the
City Clerk.
SECTION 4: That the certificates and the coupons to be thereto
attached and the endorsement to appear on the back there-
ofshall be in substantially the following form:
( Form of Certificate)
UNITED STATES OF AMERICA
STATE OF FLORIDA
COUNTY OF PALM BEACH
CITY OF DELP~¥ BEACH
SPECIAL TAX REVENUE CERTIFICATE
Number 4 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 Tnousand($1,000) Dollars
on the first day of August 19 .... , and to pay from
said special f~md interest the'~eon at the rate of
three percent (3%) per annum from date hereof un-
til paid, payablesemi-annually on the first days
of February and August of each year, with interest due
on and prior to maturity hereof payable only upon
presentation and surrender of the annexed interest
coupons as they severally become due. Both principal
hereof and interest hereon are payable in lawful money
of the United States of America at the office of the City
Clerk in the City Hall in the City of Delray Beach,
Florida.
This certificate is one of an issue numbered
i to 42, inclusive, issued pursuant to the Constitution
and Laws of Florida and a resolution adopted by the City
CoUncil of said City on June 30th, 1950, for the pur-
pose of paying the cost of improving the municipally
owned golf course and golf Course facilities of said
City. This certificate and the issue of whichit is a part
are payable solely from and secured by the First
pledge of the revenues to be received from the proceeds
of the tax imposed by the City on the purchase of
electricity, bottled gas, (natural or manufactdm-~) and
local telephone ee~ce pursuant to Ordinance number
535 adopted b$ July 9th, 1945 as amended.
This certificate, including interest thereon,
is payable solely from the aforesaid revenues and does not
constitute an indebtedness of the City o~ 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 valorum taxing power of said
City or the taxation or assessment of real estate in
said City for the payment of the principal of or inter-
est 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 par-
agraph 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 Ci~.t~, and the rights of the holders of the certificates,
reference is made to the aforesaid 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 th~s~is one are callable for redemption
prior to ~turity at the option of the City on August l, 1983,
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
redemtion 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 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
deliver~ by any person having possession thereof, howsoever
such possession may ha~s been acquired, and that any holder who
shall have taken this certificate or any of the coupons from any
person for valu~ and without notice thereby has acquired absO-
lute title thereto, free from any defenses enforceable against
any prior holder and free from all equities and claims of owners ~i
ship 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, conditions and things required by the Constitution and
Laws of Florida and byi~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 W~..EREOF, tbe City of Delray Beach
has caused thi's 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, alt as of the first day of
August, 1950.
Ma~or
Countersigned: Approved:
City Clerk
city Etto~ey
(Fo~n 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 dulymade, the City of
Delray Beach, Palm Beach,County, Florida, will
pay to bearer, solely from the special fund re-
ferred to in such certificate, the sum of
$ in lawful money of the Unlte~ S~ves
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 .
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 , 1950.
Clerk 'of' 'th'e C'¥rch'lt cburt
Palm Beach County, Florida.
SECTION §. ~hat there is hereby created for the pur-
pose o'f paying principal and interest herein authorized
and establishing and maintaining a reserve for such pur-
posesa fund to be known as the"Special Tax Revenue Cer-
tificates Sinking Fund", which is hereinafter in this
Resolution sometimes referred to,as the "Certificate
fund". Such fund shall be kept on deposit at the First
National Bank in ~.he City of Delray Beach, Florida, or in
such other bank of equal standing and rating as may be
hereafter specified by the City Council. The money held
in said fund shall be held by saiddepository 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 is
such fund shall be continuously secured bybhe deposit of
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
e/ o/so
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 pro-
visions of Ordinance No. 535, as adopted by the City
Council on July 9, 1945, as amended on January 28th,1946,
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 uspaid,
shall be placed by the City in the certificate fund as
such money is received, and all money so received is here-
by irrevocably pledged to the payment of principal and
interest on the certificates.
It shall be the duty of the depository of the
certificate, fund to teansmit to the City Clerk not later
than July 15 of each year an amount taken from the cer-
tificate fund which will be suffucient to pay principal and
interest on the certifi6ates due on the succeeding August
i and interest on the certificates falling due on the
succeding February~ 1.
There shall be reserved in the certificate fund
at all times the sum of $ 4000. as a reserve . Money in the
reserve shall be used whenever the remaining money in the
certificate fund is notJ~'suuufcient to pay the principal
and interest falling due andthere would be a default in the
payment of such principal and interest if the money were not so
used. Any payment made from the reserve to prevent such a
default shall be promptly restored thereto 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 13, 1953, and on the fifteenth day of June of each year
hereaf.~er, 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 sucSeding
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
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 15, an~ July 15, 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
provided, funds for the payment of principal of the cer-
tificates which are to be so redeemed.
SECTION 6: That the City of Delray Beach hereby covenants
and agrees with eachbsuccessive 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 remainoutstanding and that it will continue the
imposition and collection of the proceeds of such tax until
all 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 expresslycovenants and represents
that it has a legal and valid power to impose and collect
such tax and that there is by the adoption of this reso-
lution and delivery of the certificates to the purchasers
thereof and the payment for such certificates by such
purchasers, vested in such purchasere and in the subsequent
holders of such certificates a contract right to the im-
position, collection and proper application of the utilities
service tax which will continueunimpaired until all of
the certificates have been paid i~ full, which contract right
between the City and such holders is not subject to repeal, im-
paiEnent or modification b~ the City or by the legislature
of the State of Florida.
(b) That whie any of the Sprcial Tax Revenue
Certificatesissued 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 re,peet
to the amounts received by the City in each year from the
utilities service tax and the disposition madeof~a~l 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 with in sixty days following the close of
each fiscal year supply to any holder of the certificates who
may have so requeste~ a written statement covering receipt and
disposition of such revenues during the fiscal year.
SECTION V: That the certificates herein authorized
may be sold at public or private sale for such price or
prices as the City Council shall determine, provided the
interest cost to maturity 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 certlficate~
and the Mayor and City Clerk are authorized to sign any
pleadings on 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 th~s resolution shall be held to be invalid or
unenforceable for any reason, the validity or unenforceability
of such sectio, paragraph, clause or provision shall not
affect nay of the remaining provisions of this reso-
lut ion.
SECTION 10: That this resolution shall be in full force
and effect '~mme~'iately upon its adoption.
Adopted and approved JUNE 30th, 1950
(Signed)
John N. Ka~ler
Mayor
ATTEST;
Ruth R. Smith
Ci'ty Clerk
A motion was made by Councilman Roth, seconded by Councilman
Holland, that the foregoing Resolution no. 761 be passed and
adopted and upon call of roll the motion carried.unanimously.
The meeting then adjourned.
(signed)
Ruth R. Smith
City Clerk
APPROVED[:
Mayor