Res 18-65 RESOLUTION NO. 18-65.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF DELRAY BEACH, FLORIDA, AUTHORIZING AND IN-
STRUCTING THE FISCAL AGENTS TO PROCEED WITH
FINANCING FOR CAPITAL IMPROVEMENT PROJECTS IN
AN AMOUNT WHICH CAN BE FINANCED BY THIRTY-
SEVEN AND ONE-HALF PER 'C~NT (37~fl~) OF THE
ANNUAL CIGARETTE TAX COLLECTION.
~EREAS, the City Council of the City of Delray Beach,
Florida, deems it in the best interests of the citizens of this City
to enter into an agreement with B. J. Van Ingen & Co. and Goodbody &
Co. employing said companies to act as fiscal agents for the City
relative to financing for certain capital improvement projects.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
SECTION 1. B. J. Van Ingen & Co. and Goodbody & Co.,
as fiscal agents for this City, are hereby authorized and instructed
to proceed with the financing of certain contemplated capital im-
provement projects in an amount which can be financed by Thirty-
Seven and One-Half Peri-dent (37%) of the annual cigarette tax col-
lection.
SECTION 2. The fiscal agents will pay all necessary
expenses involved in bringing the bonds to market, including ap-
proving attorneyst fee, printing of blank bonds, cost of signing
and delivery of same, preparation of the official offering pro-
spectus, submission to bond rating agencies, and all bond vali-
dation costs, excluding the fee of the City Attorney and Engineers.
SECTION 3. The City will pay the fiscal agents, upon
the sale and delivery of the bonds, a fee equal to Four Dollars
and Ninety ($4.90) Cents per one thousand dollar bond issued and
sold, it being understood that the aforesaid fee is payable only
if said bonds are sold and delivered. Provided, however, if the
sale and closing of this issue is not handled concurrently with
the Two Million Dollar Water and Sewer Revenue Bond Issue hereto-
fore authorized, the City shall reimburse the fiscal agents for
the additional expenses incurred in connection with the second
closing.
SECTION 4. The Mayor is hereby authorized to execute
an agreement with said fiscal agents in accordance with this Reso-
lution.
PASSED AND ADOPTED by the City Council of the City of
Delray Beach, Florida, on this the 14th day of June, 1965.
MAYOR
ATTEST:
RESOLUTION NO. 18-65.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF DELRAY BEACH, FLORIDA, AUTHORIZING AND IN-
STRUCTING THE FISCAL AGENTS TO PROCEED WITH
FINANCING FOR ~PITAL IMPROVEMENT PROJECTS IN
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WHEREAS, the City council of the City of Delray Beach,
Florida, deems it in the best interests of the citilens of this City
to enter into an agreement with B. J. Van Ingen & Co. and Goodbody
Co. employing said compa~~act as fiscal agents for the City
relative to financing for~l~~l improvement projects, ~
NOW, THEREFORE, BE IT RESOLV~.D BY THE CITY COUNCIL OF
THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
SECTION 1. B. J. Van Ingen & Co. and Goodbody & Co.,
as fiscal agents for this City, are hereby authorized and instructed
to proceed with the.f~ of certain contemplated capi~_lnim- /
pr~vement p~ojects ln~~ount of .~$I,000,
SEC~ION2. 'The~fiscal agents will pay all necessary
expenses involved in bringing the bonds to market, including ap-
proving attorneys' fee, printing of blank bonds, cost of signing
and delivery of same, preparation of the official offering pro-
spectus, submission to bond rating agencies, and all bond vali-
dation costs, excluding the fee of the City Attorney and Engineers.
SECTION 3. The City will pay the fiscal agents, upon
the sale and delivery of the bonds, a fee equal to Four Dollars
and Ninety ($4.90) Cents per one thousand dollar bond issued and
sold, it being understood that the aforesaid fee is payable only
if said bonds are sold and delivered. Provided,however, if the
sale and closing of this issue is not handled concurrently with
the Two Million Dollar Water and Sewer Revenue Bond Issue hereto-
fore authorized, the City shall reimburse the fiscal agents for
the additional expenses incurred in connection with the second
closing.
SECTION 4. The Mayor is hereby authorized to execute
an agreement with said fiscal agents in accordance with this Reso-
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PASSED AND ADOPTED by the City Council of the City of
Delray Beach, Florida, on this the 14th day of June, 1965.
MAYOR
ATTEST:
6 t9 d'zer "
B. ,..J. VAN I NG EN <~x Co. iNC.
MUNICIPAL BONDS
FIRST NATIONAL BANK BUILDING
ELEVENTH FLOOR NEW YORK, N.Y.
MIAMI, FLORIDA 33131
April 26, 196~
I4onorable Mayor and Members
of the City Council
City of Delray Beach
city Hall
Delray Beach, Florida
Gentlemen:
Pursuant to the request of City Council in executive session
on April 21, 1965, we have reviewed the financial condition of
the City of Delray Beach and submit the following comments
with respect to financing of capital improvements.
It is our understanding that the City has in effect an ordinance
which provides that cigarette tax receipts from the additional
three cents per package levy shall be set aside and used only
for capital improvement purposes. Approximately $68,000 annually
is derived from this source and is currently used for improvements
on a "pay-as-you-so" basis.
In our opinion, the $68,000 annual cigarette tax revenues
available for capital improvement purposes would be adequate to
pay principal and interest on a bond issue of approximately
$1,000,000. The attached schedules illustrate estimated debt
service requirements on a $1,000,000 issue. Schedule i shows
estimated payments over a 22 year period at an assumed interest
rate of 3 1/2% and Schedule 2 shows estimated payments over a
27 year period at an assumed interest rate of 3 3/4%. The
estimated interest rates are based upon a "Baa" rating by Moodys
and the estimated differential in rates is brought about by the
length of maturities.
In the fiscal year ended September 30, 1964 receipts of Cigarette
Taxes were $182,469 and Franchise Taxes from Florida Power and
Light Company were $63,420; both sources of revenues are
unencumbered. While Franchise Taxes are §enerally higher regarded
as security than Cigarette Taxes, historical revenues are sufficient
only to support about $700,000 in bonds. The Cigarette Taxes
would provide excellent historical coverage for a bond issue of
Honorable Ms~vor and Members
of the City Council
City of Delray Beach Page 2 April 26, 1965
$1,000,000 and with proper protectiYe covenants we would expect
to obtain a Moodyls "Baa" and ~ood market acceptance.
~'e will be 91ad to assist the City in developin§ a financin9
plan in accordance with your wishes.
Very truly yours,
B. J. VAN INGEN & CO. Inc.
CITY OF D~KKY BEACH, FLORIDA
Estimated Debt Service Requirements
on Proposed Public Improvement Revenue Bonds
Interest
Years Principal @ 3 1/2%e Total
1966 $ - $ 35,000 $ 35,000~
1967 - 35,000 35,000~
1968 35,000 35,000 70,OO0
1969 35,000 33,775 68,775
1970 40,000 32,550 72,550
1971 40,000 31,150 71,150
1972 40,000 29,750 69,750
1973 40,000 28,350 68,350
1974 45,000 26,950 71,950
1975 45,000 25,375 70,375
1976 45,000 23,800 68,800
1977 50,000 22,225 72,225
1978 50,000 20,h75 70,&75
1979 50,000 18,725 68,725
1980 55,000 16,975 71,975
1981 55,OOO 15,050 ?0,050
1982 55,000 13,125 68,125
1983 60,000 11,200 71,200
1984 60,000 9,100 69,100
1985 65,000 7,000 72,ooo
1986 65,000 4,725 69,725
1987 70,000 2,450 72,450
$1,00o,o00 $477,750 $1,477,750
* Interest rate assumed for feasibility purposes.
** Does not include approximately $35,000 in each of the first
two years to be deposited into the Debt Service Reserve.
Schedule 1
CITY OF DELRAY BEACH~ FLORIDA
Estimated D:zbt Service Requirements
on Proposed Public I~Drovement Revenue Bonds
Interest
Years Principal @ 3 3/~* Total
1966 $ - $ 37,500 $ 37,500~×-
1967 - 37,500 37,500~*
1968 25,000 37,500 62,500
1969 25,000 36~562 61,562
1970 25,000 35,625 60,625
1971 30,000 34,687 64,68?
1972 30,000 33,562 63,562
1973 30,000 32,437 62,437
1974 30,000 31,312 61,312
1975 30,000 3o,187 6o,187
1976 35,000 29,062 64,062
1977 35,000 27,750 62,750
1978 35,000 26~437 61,437
1979 35,000 25,125 60,125
1980 40,000 23,812 63,812
1981 40,000 22,312 62,312
1982 40,000 20,812 60,812
1983 45,000 19,312 64,312
1984 45,000 17,625 62,625
1985 45,000 15,937 60,937
1986 50,000 14,250 64,250
1987 50,000 12,375 62,375
1988 50,0oo lO,5OO 6o,5oo
1989 55,000 8,625 63,625
1990 55,000 6~562 61,562
1991 60,000 4.,500 64,500
1992 60,000 2,250 62,250
$1,000,000 $634,118 $1,634,118
* Interest rate assumed for feasibilitypurposes.
** Does not include approximately $32~000 in each of the first
two years to he deposited into the Reserve Fund.
Schedule 2