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HomeMy WebLinkAboutCity of Tamarac Resolution R-92-074351 Temp. Reso. #6266 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-92- 7y RESOLUTION AUTHORIZING THE ISSUANCE OF WATER AND SEWER UTILITY REVENUE BONDS, SERIES 1992 IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $13,000,000 PURSUANT TO SECTION 207 OF RESOLUTION NO. R-85-436, AS AMENDED, FOR THE PURPOSE OF PROVIDING FUNDS TO REFUND THE CITY'S WATER AND SEWER UTILITY REVENUE BONDS, SERIES 1986; PROVIDING THAT SUCH REFUNDING BONDS SHALL NOT CONSTITUTE A GENERAL OBLIGATION OF THE CITY WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION OR LIMITATION OR A PLEDGE OF THE FULL FAITH AND CREDIT BUT SHALL BE PAYABLE AS TO PRINCIPAL PREMIUM, IF ANY, AND INTEREST SOLELY FROM CERTAIN NET REVENUES NOT DERIVED FROM AD VALOREM TAXES OF THE CITY; PROVIDING FOR THE FORM OF SUCH BONDS; AUTHORIZING THE SALE OF THE BONDS BY NEGOTIATION; PROVIDING FOR THE DETAILS OF THE BONDS; PROVIDING SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE._ WHEREAS, the City Council (the "Council") of the City of Tamara (the "City") has previously issued $12,700,000 Water and Sewe Utility Revenue Bonds, Series 1986, pursuant to Resolution No. R-85-436 adopted by the Council on September 10, 1985, as amended and supplemented from time to time (the "Original Resolution"), of which $11,655,000 principal amount is currently outstanding and unpaid (the "Series 1986 Bonds"); and WHEREAS, the Council has further determined and does hereby determine that it is in the best interest of the City and its citizens to defease the lien created under the Original Resolution by refunding the Series 1986 Bonds in order to realize a substantial interest cost savings to the City; and WHEREAS, the City under authority granted by the Constitution'of the State of Florida, Chapter 166, Florida Statutes,. its Home Rule Charter, and other applicable provisions of law, the City is authorized to issue water and sewer utility revenue bonds to refund previously issued bonds, to fund a reserve fund, if necessary, and to pay the cost of issuing such bonds, and to pledge certain revenues of the water and sewer utility not derived from ad valorem taxes for the payment of such bonds; and 1 3 2 4 f i 28 29 30 al 2: 3 3S Temp. Reso. #6266 WHEREAS, the Council for the reasons stated above has determi to provide for the issuance at one time or in series, from time t time, of not exceeding $13,000,000 in bonds of the City whic shall be designated as Water and Sewer Utility Revenue Refundin Bonds, Series 1992, pursuant to Section 207 of the Original Resolution, and to pledge the Net Revenues (as defined in the Original Resolution) of the Water and Sewer Utility (as defined it the Resolution) to the payment of principal of, premium, if any, and interest on said Bonds; and WHEREAS, the estimated sum required for the refunding of th Series 1986 Bonds will be derived from the proceeds of the sale of the Series 1992 Bonds, and that such amount, plus accrued interest, shall be sufficient to make timely payments of all presently outstanding principal, interest, redemption premiums, if any, and costs, if any, in respect to the Series 1986 Bonds as the same become due or redeemed prior to their maturity; and WHEREAS, the Series 1992 Bonds shall be issued on a parity with the City's Water and Sewer Utility Revenue Refunding Bonds, Series 1985 (the "Series 1985 Bonds") and, therefore, shall have an equal lien on the Net Revenues with the Series 1985 Bonds; and WHEREAS, the City has met or will meet before the Series 1992 Bonds are issued all of the requirements of Section 207 of the Original Resolution in order to qualify the Series 1992 Bonds as additional bonds pursuant to the Original Resolution; and WHEREAS, the defined terms as used in this Supplemental Resolution shall have the same meaning as set forth in the Original. Resolution, as amended and supplemented, unless otherwise specifically defined in this Supplemental Resolution. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF TAMARAC, FLORIDA: SECTION 1: Definitions. All defined terms used in this Supplemental Resolution shall have the same meaning as set forth in the Original Resolution, as amended and supplemented, unless otherwise specifically defined in this Supplemental Resolution. - 2 - 351 Temp. Reso. #6266 The following words and terms as used in this Supplementa Resolution shall have the following meanings, unless some othe meaning is plainly intended: A. "Code" shall mean the Internal Revenue Code of 1986, a amended. B. "Escrow Agent" shall mean a bank with trust powers or trust company approved by the City in a resolution adopte prior to the issuance of the Series 1992 Bonds which shal hold sufficient proceeds from the sale of the 1992 Bonds i an irrevocable escrow fund pursuant to the Escrow Deposit Agreement in order to effectuate the defeasance of the Series 1986 Bonds. C. "Escrow Deposit Agreement" shall mean the Escrow Deposit Agreement to be approved in substantially the final form by the Council in a resolution adopted prior to the issuance of the Series 1992 Bonds. D. "Investment Instructions" shall be the instructions pursuant to Section 148 of the Code prepared by a national recognized bond counsel addressed to the City with regard to the investment of monies on deposit in funds and accounts created and designated in Section 15 of this Supplemental Resolution. E. "Series 1992 Sinking Fund Subaccounts" shall mean the three debt service subaccounts created pursuant to Section 15 of this Supplemental Resolution. F. "Rebate Fund" shall mean the special rebate fund established by Section 15 of the Supplemental Resolution. SECTION, 2: Purpose. The City Council hereby authorizes the refunding of the Series 1986 Bonds through the issuance of the Series 1992 Bonds pursuant to Section 207 of the Original Resolution for the purpose of realizing a substantial interest cost savings to the City. - 3 - 3 9 3 4 s 3S1 Temp. Reso. #6266 SECTION 3: Designation of the Series 1992 Bonds. Subject pursuant to the provisions of this Supplemental Resolution and t Original Resolution, obligations of the City to be known as "Wat and Sewer Utility Revenue Refunding Bonds, Series 1992", a authorized to be issued in the aggregate principal amount of n exceeding $13,000,000. SECTION 4: Description of the Series 1986 Bonds. The Series 199 Bonds shall be issued in fully registered farm, shall be dated an numbered, shall be in denominations of $5,000 each, or integral multiples thereof, shall bear interest payable at such time and at such rate or rates not exceeding the maximum rate allowed byl Florida law, may be issued with fixed, variable, adjustable, convertible or other rates of interest with or without original issue discounts, shall mature on such dates and such years and amounts and may be issued as serial and/or term bonds, all as may be determined by subsequent resolution adopted by the Council prior to or upon the sale of the 1992 Bonds. The principal of and interest and redemption premium, if any, on the Series 1992 Bonds shall be payable in accordance with the terms of Article II of the Original Resolution. SECTION • Execution of the Series 1992 Bonds. The Series 1992 Bonds shall be executed in accordance with the terms of Article II of the Original Resolution. SECTION 6: Provisions for Redemption. The Series 1992 Bands shall be subject to redemption prior to their maturity, at the option of the City and in accordance with any Amortization Requirements, at such times and in such manner as shall be fixed by the Council in a resolution adopted prior to or at the time of the sale of the 1992 Bonds. Notice of such redemption shall be provided in accordance with the provisions of Article III of the Original Resolution. - 4 W 3: 3 3 3S Temp. Reso. #6266 • Form of Series 1992 Bonds. The text of the Ser 1992 Bonds, together with a Certificate of Authentication shall in substantially the form described in Section 203 of the Origin Resolution, with such omissions, assertions and variations as ma be necessary, desirable, authorized or permitted by thi Supplemental Resolution or by any subsequent resolution adopted b the City prior to the issuance of the Series 1992 Bonds, or as ma be necessary if the Series 1992 Bonds or a portion thereof ar issued as capital appreciation bonds, available rate bands and/o option bonds, or as may be necessary to comply with applicabl laws, rules and regulations of the United States and of the Stat and affect upon the issuance of the Series 1992 Bonds. SECTION 8: Application of the Series 1992 Bonds Proceeds. Th proceeds, including accrued interest, received from the sale o any Series 1992 Bonds, shall be applied by the City simultaneous) with the delivery of such series of the Series 1992 Bonds to th purchaser thereof, as follows, and as further provided in suppleffiental resolution of the City. (a) The accrued interest shall be deposited in the subaccol of the Bond Service Accounts created pursuant to Section 15 of this Supplemental Resolution in order to be used solely for the payment of interest becoming due on the Series 1992 Bonds. (b) Simultaneously with the delivery of the Series 1992 Bonds to their original purchasers, the City shall enter into an Escrow Agreement with the Escrow Agent which shall provide for the irrevocable deposit of funds and Defeasance Obligations which will be sufficient to legally defense the Series 1986 Bonds. At the time of execution of the Escrow Agreement, the City shall furnish to the Escrow Agent appropriate documentation to demonstrate that the sums being deposited and the investments to be made and investment income thereon shall be sufficient to pay, as ofj any date of that calculation, the principal, interest and 5 t j Temp. Reso. #6266 redemption premium, if any, on the Series 1986 Bonds, the same shall become due. Such escrow fund shall be separate and apart from all other funds of the City and t monies on deposit therein shall be withdrawn, used applied by the City solely for the purposes set forth i the Escrow Agreement. SECTION 9: Special and Parity Obligations of the City. Series 1992 Bonds shall not be or constitute a general obligatio or indebtedness of the City as bonds within the meaning of th Constitution of the State of Florida, but shall be payable solel from and secured by a lien on the Net Revenues in accordance wit the Original Resolution. No holder or holders of any Series 199 Bonds issued herein shall ever have the right to compile th exercise of the ad valorem taxing powers of the City or taxatio in any form of any real or personal property therein, or to compel the City to pay such principal and interest from any other funds of the City. The lien created by this Supplemental Resolution and the Original Resolution on the Net Revenues in favor of the holders of the Series 1992 Bonds shall be on a parity with the lien in favor of the holders of the Series 1986 Bonds. SEOT_LON 10: Original Resolution. The provisions and covenants of the Original Resolution, as amended and supplemented, shall apply to the Series 1992 Bonds, and for so long as any of the principal of and interest on any of the Series 1992 Bonds shall be outstanding and unpaid or until the City has made provisions for payment of principal, interest and redemption premium, if airy, with respect to the Series 1985 Bonds, 'as provided herein, the City covenants with the holders of any and all Series 1992 Bonds to do all things and make all the deposits to the funds and accounts required by Article V of the Original Resolution. SECTION11: Publication of Notice of Refunding. within thirty (30) days after delivery of the Series 1992 Bonds, the City shall cause to be published a notice of the refunding of the Series 1986 Bonds in accordance with the terms of the Original Resolution. 3. 3 35 Temp. Reso. #6266 S OTION 12: Arbitrage Covenant. No use will be made of th proceeds of the Series 1992 Bonds which, if such use wer reasonably expected on the date of issuance of the Series 199 Bonds, will cause same to be arbitrage bonds within the meaning o the Internal Revenue Code of 1986, as amended. The City at al times while the Series 1992 Bonds and interest thereon ar outstanding will comply with the requirements of the Interna Revenue Code and any applicable rules and regulations promulgate thereunder. SECTIOrj13: Notification to the Municipal Bond Insurer. An notice, authorization or request required or permitted to be give to the Bond Insurer in accordance with the terms of the Origina Resolution shall be in writing and sent by registered or certifie mail addressed to an authorized representative designated i writing to the City by the Bond Insurer. SECTION • Negotiated Sale. The City hereby authorizes the sal of the Series 1992 Bonds through a negotiated sale. SECTION 15: Funds and Accounts. The following supplements t Article V of the Original Resolution are hereby approved an authorized with respect to the Series 1992 Bonds: (a) Within three separate accounts, the Bond Service Account, Redemption Account and Reserve Account, of the Sinking Fund created pursuant to the Original Resolution, there are hereby created three separate corresponding subaccounts designated "the Series 1992 Bond Service Subaccount", "the Series 1992 Redemption Subaccount" and "the Series 1992 'Reserve Subaccount". The Finance Director shall make monthly deposits to the credit of said subaccounts in accordance with Section 505 of the Original Resolution. (b) Application Eunds Held in the Sinking Fund Suhacgounts. Monies held in each of the said Sinking Fund Subaccounts shall be applied in accordance with Sections 507, 508 and 509, respectively, of the Original Resolution. 7 - Temp. Reso. #6266 (c) Rebate Fund. A fund is hereby created and designated Ci of Tamarac Water and Sewer Utility Revenue Refunding Bo Series 1992, Rebate Fund. Monies deposited and held in t Rebate Fund shall not be subject to the lien of t Original Resolution or this Supplemental Resolution or an subsequent resolution adopted by the Council prior to th issuance of the 1992 Bonds, nor to any claim by an owner shall not be applied to the payment of the principal of o interest on the Series 1992 Bonds. Investment earnings fro the debt service subaccount shall be deposited in th Rebate Fund by the City in accordance with the Investmen Instructions. No later than thirty (30) days after the fift anniversary of the date of the Series 1992 Bonds and withi thirty (30) days of each fifth anniversary date thereafter, the City shall withdraw ninety percent (90%) o the monies on deposit in the Rebate Fund and one -hundred percent (100%) of the investment earnings in said deposits, to pay such monies and earnings directly to the United States Treasury. No later than sixty (60) days after the final maturity of the Series 1992 Bonds, the City shall pay one hundred percent (100%) of the remaining balance of said Rebate Fund to the United States. All payments to the United States shall be in accordance with investment instructions. SECTTON • Investments. Monies held in the Sinking Fund Service Subaccounts created pursuant to Section'15 of this Supplemental Resolution shall be invested in investments permitted by the Original Resolution and the Investment Instructions. 351 Temp. Reso. #6266 SECTION 17: Severability. If any one or more of the covenants, agreements and provisions of this Supplemental Resolution shall be held contrary to any express provision of law or contrary to the policy of express law, or not expressly prohibited or against public policy shall be for any reasons whatsoever be held invalid, and such covenants, agreements or provisions shall be null and void and shall be deemed separate from the remaining covenants, agreements or provisions of this Supplemental Resolution or the Series 1992 Bonds issued pursuant to this Supplemental Resolution and the Original Resolution. SECTION 18: This Resolution shall become effective immediately upon adoption. n PASSED, ADOPTED AND APPROVED this 0-9 day of , 1992. Of ATTEST: G. L. BENDER MAYOR 4�z, 1471-11�1 CAROL A. EVANS CITY CLERK I HEREBY CERTIFY that I ha e a ved is R SOLUTION as o f rm. r. MITCHELL S. KRAFT CITY ATTORNEY RECORD OF COUNCIL VOTE MAYOR BENDER DISTRICT 1 : (;/M KATZ DISTRICT 2: V/ A SCN1JMAFJN1 _---� DISTRICT 3: 0/MSC LR r—iErT DISTRICT 4: C/M ABRAMOWITZ