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