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HomeMy WebLinkAboutCity of Tamarac Resolution R-86-2621 2 3 4 �6 7 6 9 10 11 12 13 14 15 16 17 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Introduced bye Temp. Reso. #4242 Revised 7/22/86 CITY OF TAMARAC RESOLUTION NO. R-86-oe�� RESOLUTION AMENDING AND RESTATING RESOLUTION NO. R-84-121 AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE CITY OF TAMARAC IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $8,000,000 FOR THE PURPOSE OF. PROVIDING FUNDS, TOGETHER WITH OTHER AVAILABLE FUNDS, TO PAY THE COST OF PLANNING, CONSTRUCTING, FINANCING AND EQUIPPING A NEW CITY HALL AND POLICE STATION; PROVIDING THAT SUCH GENERAL OBLIGATION BONDS SHALL BE PAYABLE FROM AD VALOREM TAXES AND ANY OTHER LEGALLY AVAILABLE FUNDS OF THE CITY; AUTHORIZING AND DIRECTING VALIDATION; AUTHORIZING RELATED ACTION; PROVIDING SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Tamarac (the "City") under the authority granted by the Constitution and laws of the State of Florida, including its Home Rule Charter ("Charter"), its Code, and Chapter 166, Florida Statutes, is authorized to issue general obligation bonds to provide funds to pay for the cost of capital improvements; WHEREAS, the City has determined and does hereby determine that the planning, constructing, furnishing and equipping of a City Hall and Police Station (the "Project") are capital improvements which are necessary to provide the citizens of Tamarac with more efficient municipal and police services; WHEREAS, the City Council authorized the City Clerk in Resolution No. R-84-24 enacted on January 25, 1984 to place the issue on the ballot for a vote on the issue by the electorate of the City of Tamarac as required by the Charter; WHEREAS, a majority of the qualified electors of the City voting on the question at a special election held on March 13, 1984 approved the issuance of not exceeding $8,000,000 general obligation bonds for the purpose of providing funds, together with any other available funds, to pay the cost of planning, financing, constructing and equipping a new City Hall and Police Station on a site already owned by the City; WHEREAS, the City Council adopted Resolution No. R-84-84 on March 20, 1984 certifying the results of election and directing the City's staff to proceed with the bond issue; WHEREAS, the City Council adopted Resolution No. R-84-121 on July 25, 1984 authorizing the issuance of its general obligation bonds in aggregate principal amount not to exceed $8,000,000 for the purpose of providing funds, together with other available funds, to pay the cost of planning, constructing, financing, and equipping a new City Hall and Police Station; WHEREAS, the City Council desires to amend and restate Resolution No. R-84-121 in order to provide additional provisions pertaining to certain funds, to provide for the issuance of one series of bonds at this time for the purpose of providing funds to pay the cost of constructing and equipping a 1 new City Hall, and to incorporate certain provisions required as a result of a change in'the law; 2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF 3 THE CITY OF TAMARAC, FLORIDA: ARTICLE 1 5 DEFINITIONS Section 1.01. Meaning of Words and Terms. In 7 addition to words and terms elsewhere defined in this Resolution, the following words and terms as used in this B Resolution shall have the following meanings, unless some other meaning is plainly intended: 9 The term, "Amortization Requirements" shall mean, for 10 any Bond Year with respect to Term Bonds, the respective amounts, which are required to be deposited to the credit of the 11 Redemption Account in each Bond Year for redeeming and paying at maturity such Term Bonds determined by the Council in a 12 resolution adopted prior to the issuance of such Term Bonds. 13 The Amortization Requirements for the Term Bonds shall begin in the Bond Year determined by the Council for such 14 Series and shall end not later than the Bond Year immediately preceding the Bond Year in which such Term Bonds are stated to 15 mature. If during any Bond Year the total principal amount of Term Bonds retired by purchase or redemption or called for 16 redemption under the provisions of Article III of this Resolution shall be in excess of the Amortization Requirements 17 for the Term Bonds for such Bond Year, then at the close of such Bond Year the amount of the Amortization Requirements for 18 the Term Bonds shall be reduced for any subsequent Bond Year in amounts aggregating the amount of such excess, as shall be 19 determined by the Finance Director. 20 The term "Bond Counsel" shall mean counsel recognized on the subject of, and qualified to render approving legal 21 opinions on the issuance of, municipal bonds. 22 The word "Bondholder" or "holder" shall mean any registered owner of any Bond. Z3 The term "Bond Registrar" shall mean either the 24 Finance Director or any bank or trust company, either within or without the State of Florida, designated as such by resolution Z5 of the Council prior to the issuance of the Bonds, which shall perform such functions required of the Bond Registrar by 26 Article II of this Resolution. 27 The word "Bonds" shall mean the Bonds issued under the provisions of Article II of this Resolution. ZB The term "Bond Year" means the 12—month period 29 designated in a subsequent resolution of the Council. 30 The word "Charter" shall mean the Home Rule Charter for the City of Tamarac. 31 The word "City" shall mean the City of Tamarac, 32 Florida, a political subdivision of the State of Florida. 33 The term "City Attorney" shall mean the chief legal counsel to the City under the Charter. 34 -2- 1 2 3 5 6 7 6 9 10 11 12 13 14 15 16 17 16 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 The term "Code" shall mean the Internal Revenue Code of 1954, as amended, including the rules and regulations promulgated thereunder. The term "Clerk" shall mean the Clerk of the City Council or any Deputy Clerk of the City Council or his or her designee or the officer or officers succeeding to his or her principal functions. The term "Construction Fund" shall mean the special fund required to be established and maintained by the City pursuant to Article IV of this Resolution. The word "Council" shall mean the City Council of the City of Tamarac, Florida or the Council or body in which the general legislative powers of the Town shall, from time to time, be vested. The word "Cost" as applied to the Project shall include the cost of planning, constructing, developing, including the cost of all labor, materials, machinery and equipment, the cost of engineering, architectural, financial, advisory, planning, design and legal services, bond insurance premiums, fees of rating agencies and all expenses necessary or incident to determining the feasibility or practicability of such construction, and such other expenses or costs as may be necessary or incident to the financing herein authorized in connection with the Project. Any obligation or expense heretofore or hereafter incurred by the Council and any amounts heretofore or hereafter advanced by or to the Council in connection with any of the foregoing items of cost may be regarded as a part of such cost and reimbursed out of the proceeds of Bonds issued under the provisions of this Resolution. The term "Daily Newspaper" shall mean an English language newspaper of general circulation regularly published in the City on at least five (5) business days in each calendar week. The term "Defeasance Obligations" shall mean to the extent permitted by law: (i) Direct general obligations of, or obligations the payment of principal and interest on which is unconditionally guaranteed by, the United States of America; (ii) Any bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any such state (a) which are (x) not callable prior to maturity or (y) as to which irrevocable instructions have been given to the trustee of such bonds or other obligations by the obligor to give due notice of redemption and to call such bonds for redemption on the date or dates specified or are otherwise rated by a nationally recognized bond rating agency within its highest rating category and which are secured as to principal, redemption premium, if any, and interest by a fund consisting only of cash or bonds or other obligations of the character described in clause (i) heireof which fund may be applied only to the payment of such principal of and interest and redemption premium, if any, on such bonds or other obligations on the maturity date or dates thereof or the specified redemption date or dates pursuant to such irrevocable instructions, as appropriate, and (b) to the extent not insured, as to which the principal of and interest -3- 1 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 F�l 30 31 32 33 34 on the bonds and obligations of the character described in clause (i) hereof which have been deposited in such fund are sufficient to pay principal of and interest and redemption premium, if any, on the bonds or other obligations described in this clause (ii) on the maturity date or dates thereof or on the redemption date or dates specified in the irrevocable instructions referred to in subclause (a) of this clause (ii), as appropriate, and any certificates or any other evidences of any ownership interest in obligations or specified portions thereof (which may consist of specified portions of the interest thereon) of the character described in this clause (ii). (iii) Evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in (i) held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in (i), and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. The term "Finance Director" or "Director" shall mean the Director of the City Finance Department or the officer or officers succeeding to his principal functions. The term "General Fund" shall mean the General Fund of the City designated as such by state law and in the annual budget and the annual audit of the City, required by law, from which the general operations of the City are funded. The term "General Revenues" shall mean ad valorem tax revenues levied and imposed in the City and all other funds legally available which are eligible to be credited to the General Fund of the City. The term "Government Obligations" shall mean direct obligations of, or obligations the principal of and the interest on which are guaranteed by, the United States of America. The term "H.R. 3838" shall mean pending legislation approved by the House of Representatives of the United States on December 17, 1985. The term "Investment Obligations" shall mean obligations in which the City invests revenues held in its General Fund in accordance with the Laws of the State of Florida affecting municipal investments and the policy of the City as amended from time to time; The word "Mayor" shall mean the Mayor of the City of Tamarac. The word "Outstanding" shall mean, when used with respect to the Bonds, all Bonds theretofore delivered except: (a) Bonds paid or redeemed or delivered to or acquired by the City or Paying Agent for cancellation; (b) Bonds deemed to have been paid in accordance with Article III hereof; and (c) Bonds in exchange for other Bonds have been issued, delivered under this Resolution. or in lieu of which authenticated and -4- The term "Paying Agent" or "Paying Agents" shall mean 1 the Bond Registrar, the bank or banks or trust company or trust companies, either within or without the State of Florida, at 2 which the principal of the Bonds shall be payable. 3 4 5 b 7 B 9 10 11 12 13 14 15 16 17 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 The term "Principal and Interest Requirements" shall mean the principal and interest due in each Bond Year as determined in a subsequent resolution of the Council. The term "Principal Office" of the Bond Registrar or any Paying Agent shall mean the office at which, at the time in question, its corporate trust business is principally conducted. The term "Project" shall mean the design, plans, construction, and installation of a new City Hall and a new Police Station including all equipment, furniture, and other related items thereto. The term "Serial Bonds" shall mean the Bonds which shall be stated to mature in annual installments so designated in a resolution of the Council adopted prior to the issuance of such Bonds. The term "Series" shall mean each and every series of bonds issued pursuant to a subsequent resolution or resolutions of the Council. The term "Term Bonds" shall mean Bonds so designated in a resolution of the Council adopted prior to the issuance of such Bonds. Section 1.02. Construction of Words. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. The words "Bond," "owner" and "holder" shall include the plural as well as the singular number unless the context shall otherwise indicate. Section 1.03. Findings. It is hereby ascertained, determined and declared that: (a) The recitals contained in the clauses preceding Article I hereof are incorporated herein by reference as part of this Resolution. (b) The City has determined and hereby determines that it is in the best interest of the City to obtain funds by the issuance of the Bonds, in a manner provided in this Resolution in order to finance the Cost of the Project. (c) The City hereby pledges its full faith, credit and taxing power for the prompt payment of both principal of, redemption premium, if any, and interest on the Bonds as such payments become due. ARTICLE II FORM, EXECUTION, DELIVERY AND REGISTRATION OF BONDS Section 2.01. Issuance of Bonds. For the purpose of providing funds to pay all or part of the Cost of the Project, bonds of the City may be issued under and secured by this Resolution subject to the conditions hereinafter provided in Section 2.06 of this Article. The principal of, redemption premium, if any, and the interest on all such Bonds shall be payable from the General Fund or any other legally available funds of the City. The City shall levy and collect annually an 1•12 I.-] ad valorem tax upon all taxable property in the City, over and above all other taxes authorized to be levied by the City, sufficient to pay such principal, redemption premium, if any, 1 and interest as the same become due and payable. 2 3 5 6 7 6 9 10 11 12 13 14 15 16 17 18 19 21 Fkq 23 24 25 26 27 28 29 30 31 32 33 34 Section 2.02. Terms, Medium and Place of Payment. The Bonds issued under the provisions of this Resol ution shall be in the denomination of Five Thousand Dollars ($5,000) or integral multiples thereof, shall bear interest from their date until their payment in full at a rate or rates not exceeding the maximum rate then permitted by law, such interest to the respective maturities of the Bonds being payable semi-anmually on such dates as shall be determined by resolution of the Council, shall be dated, shall be stated to mature annually, and shall be subject to redemption prior to their respective maturities, all as hereinafter provided or authorized, or as shall be determined by subsequent resolution of the Council. The principal of, redemption premium, if any, and the interest on the Bonds shall be payable in any coin or currency of the United States of America which, at the respective dates of payment thereof, is legal tender for the payment of public and private debts. Payment of the interest on the Bonds to the maturity thereof shall be made to the person appearing on the bond registration books of the City hereinafter provided for as the registered owner thereof fifteen days before the next interest payment date, such interest to be paid by check or draft drawn on a Paying Agent mailed to such registered owner at his address as it appears on such registration books, or such other methods, place or places as may be designated by such subsequent resolution of the Council. The principal of the Bonds shall be payable at the Principal Offices of the Paying Agents designated for the Bonds. Section 2.03. Execution and Form of Bonds. All the Bonds shall be executed on facsimile signature of the by the manual or facsimile Clerk of the Council, and imprinted thereon. behalf of the City by the manual or Mayor or Vice Mayor of the City and signature of the Clerk or any Deputy a facsimile of its seal shall be If any of the officers who shall have signed any of the Bonds or whose facsimile signature shall be upon the Bonds shall cease to be such officer of the City before the Bonds so signed and sealed shall have been actually authenticated by the Bond Registrar or delivered by the City, such Bonds nevertheless may be authenticated, issued and delivered with the same force and effect as though the person or persons who signed such Bonds or whose facsimile signature shall be upon the Bonds had not ceased to be such officer or officers of the City; and also any such Bond may be signed on behalf of the City by those persons who, at the actual date of the execution of such Bond, shall be the proper officers of the City, although at the nominal date of such Bond any such person shall not have been such officer of the City. The Bonds shall be issued in fully registered form only. The Bonds, issued under the provisions of Section 2.06 of this Article, and the statement of validation, the certificate of authentication and the certificate of transfer to be endorsed on the Bonds shall be, respectively, substantially in the form attached hereto as Exhibit I, with such appropriate variations, omissions and insertions as are required or permitted by this Resolution or by subsequent resolution adopted by the Council pursuant to Section 2.06. Section 2.04. Bond Registrar and Registration; Exchange. The City shall cause its books for the registration and for the transfer of Bonds to be kept by the Bond CZ:c 1 2 3 5 6 7 6 9 10 11 12 13 14 15 16 17 16 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Registrar. Any Bond may be transferred only upon an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Bond Registrar, such transfer to be made on such books by the Bond Registrar. The principal of any Bond shall be payable only to or upon the order of the registered owner or his legal representative. Bonds shall not be registered to bearer. Bonds may be exchanged for a like aggregate principal amount of Bonds of other authorized denominations of the same series, interest rate and maturity. The City shall execute and deliver, and the Bond Registrar shall authenticate, such Bonds which the registered owner making the exchange is entitled to receive. No charge shall be made to any Bondholder for the privilege of registration, transfer or exchange hereinabove granted, but any Bondholder requesting any such registration, transfer or exchange shall pay any tax or other governmental charge required to be paid with respect thereto. The Bond Registrar shall not be required to transfer or exchange any Bond after the mailing of notice calling such Bond or portion thereof for redemption has been given as provided in this Resolution during the period of 15 days next preceding the mailing of such notice of redemption. Each Bond delivered pursuant to any provision of this Resolution in exchange or substitution for, or upon the transfer of the whole or any part of one or more other Bonds, shall carry all of the rights to interest accrued and unpaid that were carried by the whole or such part, as the case may be, of such one or more other Bonds, and, notwithstanding anything contained in this Resolution, such Bonds shall be so dated or bear such notation, that neither gain nor loss in interest shall result from any such exchange, substitution or transfer. Section 2.05. Ownership of Bonds; Transfer of Title. The City, the Paying Agents and the Bond Registrar shall deem and treat the person in whose name any Bond shall be registered on the books maintained pursuant to Section 2.04 as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment thereof and for all other purposes whatsoever, and neither the City, the Paying Agents nor the Bond Registrar shall be affected by any notice to the contrary. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. Section 2.06. Issuance of the Bonds; Award Resolution; Application of Bond Proceeds. There shall be issued under and secured by this Resolution at one time or from time to time, in one or more Series, subject to the conditions hereinafter provided in this Section, General Obligation Bonds in an amount not to exceed Eight Million Dollars ($8,000,000), the initial Series of which will be Series 1986 of the City in an aggregate principal amount not to exceed Six Million Five Hundred Thousand Dollars ($6,500,000) (City Hall Project) for the purpose of providing funds (from the issuance and sale of the Series 1986 Bonds) to pay the Cost of the Project as it relates to the City Hall. The Council hereby authorizes and directs that such funds (from the issuance and sale of the Series 1986 Bonds) be used for the acquiring, developing, planning, designing, purchasing, constructing, improving, financing and equipping of the City Hall portion of the Project. The Bonds shall be dated as of such date, shall be numbered and lettered as to each such Series and shall be stated to mature in the year or years not more than forty (40) years from the date of the Bonds and in the amounts established by the Council by resolution prior to the issuance of the -7- Bonds. The Bonds shall bear interest, shall have such redemption provisions and Amortization Requirements, if any, and shall have such Paying Agents all as shall be determined by 1 the Council in a resolution or resolutions adopted prior to the issuance of the Bonds. 2 3 4 S 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Each of the Bonds shall be executed substantially in the form and manner hereinabove set forth, shall have printed thereon a statement of validation in the form hereinabove set forth, and shall be deposited with the Finance Director or the Bond Registrar for delivery, but prior to or simultaneously with the delivery of said Bonds or any Series thereof by the Finance Director, there shall be filed with the Clerk the following: (a) a copy, certified by the Clerk, of the resolution of the Council, awarding said Bonds, specifying the interest rate or rates of each such Bond, directing the delivery of said Bonds to or upon the order of the purchasers therein named upon payment of the purchase price therein set forth; designating the Bond Registrar and the Paying Agents, fixing the Series designation and date, fixing the year and amounts in which said Bonds will mature, fixing the Amortization Requirements of any Term Bonds and fixing the times and prices at which said Bonds are to be subject to redemption; (b) a certificate, signed by the Finance Director, setting forth the Principal and Interest Requirements for each Bond Year thereafter on account of the Bonds then requested to be delivered. (c) an opinion of the City Attorney to the effect that the issuance of said Bonds has been duly authorized and that all legal conditions precedent to the delivery of said Bonds have been fulfilled. (d) an opinion of Bond Counsel to the effect that the issuance of said Bonds has been duly authorized, that all legal conditions precedent to the delivery of such Bonds have been fulfilled and that the Bonds are valid and binding obligations of the City in accordance with their terms. When the documents mentioned in clauses (a) to (d), inclusive, of this Section shall have been filed with the Clerk and when said Bonds or the Series thereof shall have been executed as required by this Resolution, the Finance Director shall deliver said Bonds or the Series thereof then to be issued, at one time, to or upon the order of the purchasers named in the resolution mentioned in clause (a) of this Section, but only upon payment to the Finance Director of the purchase price of said Bonds. The Finance Director shall be entitled to rely upon such resolution as to the names of the purchasers, the interest rate of each of said Bonds and the amount of such purchase price. Simultaneously with the delivery of the Bonds, the Finance Director shall apply the net proceeds of the Bonds to the credit of the Construction Fund to pay the Cost of the Project. Any accrued interest shall be deposited to the Debt Service Fund as such fund is defined herein. Section 2.07. Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond secured hereby shall become mutilated or be destroyed, stolen or lost, the City may cause to be executed and delivered a new Bond of like date, number and tenor in exchange and substitution for and upon the cancel- 1 21 3 S 6 7 6 9 10 11 12 13 14 15 16 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 lation of such mutilated Bond or in lieu of and in substitution of such Bond destroyed, stolen or lost, upon the owner paying the reasonable expenses and charges of the City in connection therewith and, in the case of a Bond destroyed, stolen or lost, his filing with the Bond Registrar evidence satisfactory to it that such Bond was destroyed, stolen or lost, and of his ownership thereof, and furnishing the City and the Bond Registrar with indemnity satisfactory to the City and the Bond Registrar. Section 2.08. Temporary Bonds. All Bonds issued and to be issued under this Resolution may be initially issued in temporary form exchangeable for definitive bonds when ready for delivery. The temporary bonds shall be of such denomination as may be determined by the City, and may contain such references to any of the provisions of this Resolution as may be appropriate. Every temporary bond shall be executed by the City upon the same conditions and in substantially the same manner as the definitive bonds. If the City issues temporary bonds it will execute and furnish definitive bonds without delay and thereupon the temporary bonds shall be surrendered for cancellation in exchange therefor at an office designated by the City and the City shall deliver in exchange for such temporary bonds an equal aggregate principal amount of definitive bonds of authorized denominations. Until so exchanged, the temporary bonds shall be entitled to the same benefits under this Resolution as definitive bonds issued and delivered hereunder. Section 2.09. Cancellation and Destruction of Bonds. All Bonds paid, redeemed or purchased, either at or before maturity, shall be cancelled upon the payment, purchase or redemption of such Bonds. All such bonds so cancelled shall be destroyed by the Paying Agent, which shall execute a certificate of destruction in triplicate describing the Bonds so destroyed and one executed certificate shall be filed with each of the City and the Bond Registrar, and one executed certificate shall be retained by the Paying Agent, which shall deliver a duplicate thereof to any other Paying Agent then acting. ARTICLE III REDEMPTION OF BONDS Section 3.01. The Bonds Redeemable. The Bonds shall be subject to mandatory redemption, and to redemption at the option of the City, prior to their respective maturities at the redemption prices and in the manner and on a date or dates to be.specified in the resolution referred to in Section 2.06(a). Section 3.02 Notice of Redemption. Any such redemption shall be made upon not less than thirty (30) days' or more than sixty (60) days' prior written notice to the registered owners of the Bonds to be redeemed, in the manner and under the terms and conditions provided in the resolution referred to in section 2.06(a). Section 3.03. Effect of Redemption Call. On' the date so designated for redemption, notice having been given in the manner and under the conditions hereinabove provided and moneys for payment of the redemption price being held by the Paying Agents in trust for the holders of the Bonds to be redeemed, all as provided in this Resolution, the Bonds so called for redemption shall become and be due and payable at the redemption price provided for redemption of such Bonds on such date, interest on the Bonds so called for redemption shall cease to accrue, such Bonds shall cease to be entitled to any lien, benefit or security under this Resolution, and the M610 holders of such Bonds shall have no rights in respect thereof 1 I except to receive payment of the redemption price thereof. Bonds which have been duly called for redemption under the provisions of this Article III and for the payment of the 2 redemption price of which and accrued interest to the date fixed for redemption moneys shall be held by the Paying Agents 3 in trust for the holders of the Bonds to be redeemed, all as provided in this Resolution, shall not be deemed to be 4 outstanding under the provisions of this Resolution. 5 Section 3.04. Selection of Bonds to be Redeemed. If less than all of the Bonds of like maturity of any Series shall 6 be called for redemption, the particular Bonds or portions of Bonds to be redeemed shall be selected as provided for in the 7 resolution referred to in Section 2.06(a). B ARTICLE IV 9 CONSTRUCTION FUND 10 Section 4.01. Construction Fund. A special fund is hereby - created and designated the "Tamarac City Hall 11 Construction Fund" (herein sometimes called the "Construction Fund"), to the credit of which such deposits shall be made as 12 provided in Section 2.06 of this Resolution. 13 Section 4.02. Payments From Construction Fund. Payment of the Cost shall be made from the Construction Fund as herein 14 provided. All such payments shall be subject to the provisions and restrictions set forth in this Article and the City 15 covenants that it will not cause or permit to be paid from the Construction Fund any sums except in accordance with such 16 provisions and restrictions. Moneys in the Construction Fund shall be disbursed subject to such controls and procedures as 17 the City may from time to time institute in connection with the disbursement of City funds for paying the cost of capital 18 projects. 19 Section 4.03. Cost of Project. For the purposes of this Article, any Cost to be incurred for any part of or all of 20 the Project, shall include, without intending thereby to limit or to restrict or to extend any proper definition of such Cost 21 under the provisions of this Resolution, the following; 22 (a) obligations incurred for labor and materials and to contractors, buildings and materialmen in 23 connection with the construction of enlargements, improvements and extensions, for machinery and 24 equipment, and for the restoration or relocation of property damaged or destroyed in connection with such 25 construction. 26 (b) interest accruing upon any Bonds prior to the commencement of and during construction or for any 27 additional period and any amounts required to fund in whole or part the Reserve Requirement for any Bonds as 28 may be authorized by law and if so provided subject to any limitation, in the resolution providing for, or 29 authorizing, the issuance of such Bonds. 30 (c) the fees and expenses of the Paying Agents j for their services under this Article and Article II 31 of this Resolution, including legal expenses and fees, 22 fees and expenses of consultants, financing charges, cost of preparing and issuing the Bonds, the cost and 33 charges of any letter of credit providers, taxes or other municipal or governmental charges lawfully 34 levied or assessed during construction upon the City -10- Hall or any property acquired therefor, and premiums on insurance (if any) in connection with any Additional Improvements during construction; 1 (d) any amounts hereafter advanced by any agency 2 of the State or Federal Government for any of the foregoing purposes and any obligation or expense 3 heretofore or hereafter incurred by the City for any of the foregoing purposes, and paid for by the City 4 out of funds other than moneys in the Construction Fund. S Section 4.04. Disposition of Construction Fund fi Balance. When the construction of any part of or all of the Project shall have been completed, which fact shall be 7 evidenced to the Finance Director by a certificate stating the date of such completion, the balance in the Construction Fund 6 not reserved by the City for the payment of any Cost remaining shall be transferred by the Finance Director to the credit of 9 the Redemption Account. 10 ARTICLE V 11 REVENUES AND FUNDS 12 Section 5.01. Levy of Ad Valorem Tax; Payment and Pledge. In each year while any Bonds are outstanding, the City 13 covenants to levy and collect a tax, without limitation as to rate or amount, on all taxable property within the City, 14 sufficient in amount to pay the principal of, premium, if any, and any interest on the Bonds as the same shall become due. 1S The tax assessed, levied and collected for the security and payment of the Bonds shall be assessed, levied and collected in 16 the same manner and at the same time as other City taxes are assessed, levied and collected and the proceeds of said tax, 17 except as herein provided, shall be applied solely to the payment of the principal of, premium, if any, and interest on 19 the Bonds. 19 1 To the extent the Bonds are payable from tax revenues of the City as herein provided, the full faith, credit and 20 taxing power of the City are hereby irrevocably pledged to the payment of the principal of, premium, if any, and interest on. 21 the Bonds. 22 Section 5.02. Creation of Debt Service Account and Certain Subaccounts. A special account is hereby created and 23 designated "City of Tamarac General Obligation Bonds, Series 19$6 Debt Service Account" (herein called the "Debt Service 24 Fund"). There are hereby created in the Debt Service Fund three separate subaccounts designated "Bond Interest 25 Subaccount", "Bond Principal Subaccount", and "Bond Redemption Subaccount" respectively. 26 The moneys in each of said accounts shall be held in 27 trust and applied as hereinafter provided with regard to each 28 such account. Section 5.03. Withdrawals From General Fund, Excess 29 one s. The Finance Director shall, on or before the 30th day f the month next succeeding the month in which Bonds are 30 issued under- the provisions of this Resolution and not later han the 30th day of each month thereafter, withdraw from the 31 eneral Fund an amount sufficient to meet the deposits 32 escribed in clauses (a) to (c), inclusive, below and deposit uch sum so withdrawn to the credit of the following accounts: 33 (a) to the credit of the Bond Interest 34 Subaccount, such amount as shall be required to pay the interest on all Bonds then Outstanding which will -11- Hall or any property acquired therefor, and premiums on insurance (if any) in connection with any Additional Improvements during construction; 1 (d) any amounts hereafter advanced by any agency 2 of the State or Federal Government for any of the foregoing purposes and any obligation or expense 1 heretofore or hereafter incurred by the City for any of the foregoing purposes, and paid for by the City I out of funds other than moneys in the Construction Fund. 5 Section 4.04. Disposition of Construction Fund 6 Balance. When the construction of any part of or all of the Project shall have been completed, which fact shall be 7 evidenced to the Finance Director by a certificate stating the date of such completion, the balance in the Construction Fund g not reserved by the City for the payment of any Cost remaining shall be transferred by the Finance Director to the credit of 9 the Redemption Account. l0 ARTICLE V 11 REVENUES AND FUNDS 12 Section 5.01. Lev of Ad Valorem Tax; Payment and Pledge. In each year while any Bonds are outstanding, the City 11 covenants to levy and collect a tax, without limitation as to rate or amount, on all taxable property within the City, 14 sufficient in amount to pay the principal of, premium, if any, and any interest on the Bonds as the same shall become due. 15 The tax assessed, levied and collected for the security and payment of the Bonds shall be assessed, levied and collected in 16 the same manner and at the same time as other City taxes are assessed, levied and collected and the proceeds of said tax, 17 except as herein provided, shall be applied solely to the payment of the principal of, premium, if any, and interest on 19 the Bonds. 19 To the extent the Bonds are payable from tax revenues of the City as herein provided, the full faith, credit and 20 taxing power of the City are hereby irrevocably pledged to the payment of the principal of, premium, if any, and interest on 21 1 the Bonds. 22 Section 5.02. Creation of Debt Service Account and Certain Subaccounts. A special account is hereby created and 23 designated "City of Tamarac General Obligation Bonds, Series 1198fi Debt Service Account" (herein called the "Debt Service 24 Fund"). There are hereby created in the Debt Service Fund three separate subaccounts designated "Bond Interest 25 Subaccount", "Bond Principal Subaccount", and "Bond Redemption Subaccount" respectively. 26 The moneys in each of said accounts shall be held in 27 trust and applied as hereinafter provided with regard to each such account. 28 Section 5.03. withdrawals From General Fund, Excess 29 one s. The Finance Director shall, on or before the 30th day f the month next succeeding the month in which Bonds are 30 issued under- the provisions of this Resolution and not later han the 30th day of each month thereafter, withdraw from the 31 eneral Fund an amount sufficient to meet the deposits 32 escribed in clauses (a) to (c), inclusive, below and deposit uch sum so withdrawn to the credit of the following accounts: 33 (a) to the credit of the Bond Interest 24 Subaccount, such amount as shall be required to pay the interest on all Bonds then Outstanding which will -11- Q_ I 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 be or become payable on the next ensuing interest payment date, taking into account available Capitalized Interest, if any; (b) to the credit of the Bond Principal Subaccount, such amounts as shall be required to pay the total of the principal on all Serial Bonds then Outstanding which will be or become payable on the next ensuing Serial Bond principal payment date; (c) to the credit of the Bond Redemption Subaccount such amounts, if any, as shall be equal to the total of the sinking fund installments on all Term Bonds then Outstanding which will be or become callable or payable on the next ensuing sinking fund payment date pursuant to a resolution or resolutions mentioned in Section 2.06(a) hereof. Section 5.04. Withdrawals From Debt Service Account. There shall be withdrawn by the Finance Director from the Bond Interest Subaccount and the Bond Principal Subaccount from time to time, sufficient money for paying the interest on the Bonds and the principal of the Serial Bonds as the same shall fall due. Moneys held for the credit of the Bond Redemption Account shall be held and applied in accordance with a resolution or resolutions mentioned in Section 2.06(a) hereof. Section 5.05. Moneys Set Aside Held In Trust; Unclaimed Moneys. All moneys which shall have been withdrawn from the Debt Service Account and set aside for the purpose of paying any of the Bonds hereby secured, either at the maturity thereof or upon call for redemption, shall be held in trust for the respective owners of such Bonds. But any moneys which shall be so set aside or deposited and which shall remain unclaimed by the owners of such Bonds for a period of four (4) years after the date on which such Bonds shall have become due and payable (or such longer period as shall be required by Florida law) shall be paid to the City or to such officer, board or body as may then be entitled by law to receive the same and thereafter the owners of such Bonds shall look only to the City or to such officer, board or body, as the case may be, for payment and then only to the extent of the amounts so received without any interest thereon. Section for the credit hereunder shall, and reinvested by ARTICLE VI INVESTMENT OF ACCOUNTS: DEPOSITARIES AND SECURITY 6.01. Investment of Accounts. Moneys held of any as nearly the City, account or Subaccount established as may be practicable, be invested in Investment Obligations. Moneys held for the credit of the Construction Fund, shall be invested in Investment Obligations which shall mature or which shall be subject to redemption by the holder thereof at the option of such holder not later than the date when the moneys held for the credit of said Fund shall be required for the purposes intended. Section 6.02. Accounts and Subaccounts. For the purposes of this Resolution, each Account and Subaccount created hereunder shall be a series of self -balancing accounts within the book or accounts of the City and shall connote a segregation of accounts, which will support special purpose disclosure reports, not to be construed as a separate set of books of accounts. -12- Section 6.03. Arbitrage and Tax Covenants. The City covenants that it shall not use or permit the use of any proceeds of Bonds or any other funds of the City from whatever 1 source derived, directly, or indirectly, to acquire any I securities or obligations, and shall not take or permit to be 2 taken any other action or actions, which would cause any Bond to be an "arbitrage bond" within the meaning of Section 103(c) 3 of the Code, or which would otherwise cause interest on the Bonds to become subject to federal income tax. The City covenants that it shall at all times do and perform all acts and things permitted by law and which are necessary or g desirable in order to assure that interest paid by the City on the Bonds shall, for the purposes of federal income tax, be 6 exempt from all income taxation under the Internal Revenue Code of 1954, as amended or any other valid provision of law. 7 In particular, but without limitation, the City 9 further represents, warrants and covenants to comply with the following restrictions of H.R. 3838 as adopted by the United 9 States House of Representatives on December 17, 1985 unless such compliance is not necessary in the opinion of Bond 10 Counsel, as follows: 11 (a) Gross proceeds of the Bonds will not be used in a manner which will cause the Bonds to be 12 considered "nonessential function bonds." The term "nonessential function bonds" means any obligation 13 issued as part of an issue if (i) 5% or more of the gross proceeds of such issue are to be used (directly 14 or indirectly) to make or finance loans to persons other than governmental units, or (ii) 10% or more of 15 the gross proceeds of such issue are to be used (directly or indirectly) in any trade or business 16 carried on by any person other than a governmental unit (other than use as a member of the general 17 public). 19 (b) Except as provided in paragraph (c) below, no gross proceeds of the Bonds are reasonably expected 19 to be used (or will be used other than inadvertently) directly or indirectly to acquire higher yielding 20 investments or to replace funds which were used directly or indirectly to acquire higher yield. 21 investments. ("Higher yielding investments" means any investment property which can reasonably be expected 22 to produce a yield in excess of the yield on the Bonds). Records of all investments shall be 23 maintained by the City until six years after the retirement of the last Bonds. 24 (c) The investment earnings on any bona fide 25 debt service fund for the Bonds will be invested without regard to the yield limitations described in 26 paragraph (b) above. No annual rebate of the investment earnings on said funds will be made unless 27 the earnings on said funds for the period of time beginning on October 1 of a given year and ending on 29 September 30 of the immediately subsequent year equals or exceeds $100,000. If earnings equal such amount, 29 the entire annual earnings on said fund shall be rebated. 30 (d) The Bonds shall not become directly or 31 indirectly federally guaranteed. Bonds will be considered to be "federally guaranteed" if the payment 32 of principal or interest with respect to such Bonds is guaranteed (in whole or in part) by the United States 33 (or any agency or instrumentality thereof) or 5% or more of the proceeds of these Bonds are used in making 24 -13- loans the payment of principal or interest with respect to which are guaranteed or invested (directly or indirectly) in federally insured deposits or 1 accounts. 2 (e) All proceeds of the Bonds (other than amounts invested in the Rebate Fund (defined below) 3 and any debt service fund for the Bonds) shall be expended within three years after the date of issue of 4 the Bonds. 5 (f) The City shall use its best efforts to submit to the Secretary of the Treasury, not later 6 than November 15, 1986, a statement concerning the Bonds which contains the name and address of the City, 7 the date of the issue, the amount of net proceeds of the issue, the stated interest rate, terms, face B amount of each Bond which is part of the issue, the costs of issuance, the amount of reserves of the issue 9 and such information as the Secretary of the Treasury may by regulations require. 10 (g) The City shall establish a trust fund (the 11 "Rebate Fund") pursuant to this Resolution for the purpose of accepting deposits of rebate amounts which 12 may occur by operation of the limitations described in paragraphs (b) and (c) above. The City shall provide 13 not later than thirty (30) days after the fifth Bond Year and every five years thereafter for payment to 14 the United States of 90% of the amounts deposited to said fund and 100% of the investment earnings on said 15 deposits. Not later than thirty (30) days after the final retirement of the Bonds, the City shall pay 100% 16 of the remaining balance of said fund to the United States. Each payment shall be filed with the Internal 17 Revenue Service Center, Philadelphia, Pennsylvania 19255. Each payment shall he accompanied by a 19 statement summarizing the determination of the amounts 19 paid and to be paid to the United States. 20 ARTICLE VII 21 SUPPLEMENTAL RESOLUTIONS 22 Section 7.01. Supplemental Resolution Without Bondholders' Consent. The Council may, from time to time and 23 at any time, adopt such Resolutions supplemental hereto as shall not be inconsistent with the terms and provisions hereof 24 (which supplemental resolutions shall thereafter form a part hereof) 25 (a) to cure any ambiguity, formal defect, or 26 omission or to correct any inconsistent provisions in this Resolution or in any supplemental resolution, or 27 29 (b) to grant to or confer upon the Bondholders any additional rights, remedies, powers, authority or 29 security that may lawfully be granted to or conferred upon the Bondholders, or 30 (c) to add to the conditions, limitations and 31 restrictions on the issuance of Bonds under the provisions of this Resolution other conditions, 32 limitations and restrictions thereafter to be observed, or 33 34 -14- (d) to add to the covenants and agreements of the City in this Resolution other covenants and agreements thereafter to be observed by the City or to 1 surrender any right or power herein reserved to or conferred upon the City. 2 (e) to provide for the issuance of Bonds in 3 coupon form, including such modifications as are necessary or desirable to provide herein the customary 4 terms and conditions relating to bonds issued in coupon form. 5 (f) to comply with the requirements of the 6 Internal Revenue Code as are necessary in the opinion of Bond Counsel to make the interest on the Bonds 7 exempt from federal income taxes. 8 At least thirty (30) days prior to the adoption of any supplemental resolution for any of the purposes of this 9 Section, the Clerk shall cause a notice of the proposed adoption of such supplemental resolution to be mailed, postage 10 prepaid, to all registered owners of Bonds at their addresses as they appear on the registration books. Such notice shall 11 briefly set forth the nature of the proposed supplemental resolution and shall state that copies thereof are on file at 12 the office of the Clerk for inspection by all Bondholders. A failure on the part of the Clerk to mail the notice required by 13 this Section shall not affect the validity of such supplemental resolution. 14 Section 7.02. _Supplemental Resolution With 15 Bondholders' Consent. Subject to the terms and provisions contained in this Section, and not otherwise, the Bondholders 16 of not less than two-thirds (2/3) in aggregate principal amount of the Bonds then Outstanding shall have the right, from time 17 to time, to consent to and approve the adoption of such resolution or resolutions supplemental hereto as shall be 16 deemed necessary or desirable by the City for the purpose of modifying, altering, amending, adding to or rescinding, in any 19 particular, any of the terms or provisions contained in this Resolution or in any supplemental resolution; provided, 20 however, that nothing herein contained shall permit, or be construed as permitting, (a) an extension of the maturity of 21 the principal of or the interest on any Bond issued hereunder, or (b) a reduction in the principal amount of any Bond or the 22 redemption premium or the rate of interest thereon, or (c) a preference or priority of any Bond or Bonds over any other Bond 23 or Bonds, or (d) a reduction in the aggregate principal amount of, the Bonds required for consent to such supplemental 24 resolution. If at the time of any such amendment any of the Bonds shall be insured as to payment of principal and interest 25 by an insurance company in the business of insuring such risks, pursuant to an agreement entered into between the City and such 26 insurer, no such amendment shall be made except with the consent of such insurer. Nothing herein contained, however, 27 shall be construed as making necessary the approval by Bondholders of the adoption of any supplemental resolution as 26 authorized in Section 7.01 of this Article. 29 If at any time the City shall determine that it is necessary or desirable to adopt any supplemental resolution for 30 any of the- purposes of this Section, the Clerk shall cause notice of the proposed adoption of such supplemental resolution 11 to be mailed by first-class mail, postage prepaid, to all 32 registered owners of Bonds at their addresses as they appear on the registration books. The City shall not, however, be subject to any liability to any Bondholder by reason of its 33 failure to cause the notice required by this Section to be 34 mailed and any such failure shall not affect the validity of MUM 1 2 3 4 5 6 7 B 9 10 11 12 13 14 15 20 21 22 23 24 25 26 27 28 29 30 - 31 32 33 34 such supplemental resolution when consented to and approved as provided in this Section. A subsequent resolution of the Council may provide that the form and manner of providing notice to Bondholders be in some different form if so determined by the Council; in particular, if the Council shall determine, based upon advice of Bond Counsel, that interest on any series of Bonds will not be subject to federal income taxation if such Bonds are issued in coupon form, then such subsequent resolution may provide for the publication of notice in the form and manner as is customarily applicable with respect to bonds issued in coupon form. Whenever, at any time within one year after the date of the first publication of such notice, the Clerk shall have received an instrument or instruments in writing purporting to be. executed the Bondholders of not less than two-thirds (2/3) in aggregate principal amount of the Bonds then Outstanding, which instrument or instruments shall refer to the proposed supplemental resolution described in such notice and shall specifically consent to and approve the adoption thereof in substantially the form of the copy thereof referred to in such notice, thereupon, but not otherwise, the Council may adopt such supplemental resolution in substantially such form, without liability or responsibility to any Bondholder, whether or not such Bondholder consented thereto. Upon the adoption of any supplemental resolution pursuant to the provisions of this Section, this Resolution shall be and be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations under this Resolution of the City and all Bondholders of Bonds then Outstanding shall; thereafter be determined, exercised and enforced in all respects under the provisions of this Resolution as so modified and amended. Section 7.03. Supplemental Resolution Part _of Resolution. Any supplemental resolution adopted inaccordance with the provisions of this Article shall thereafter form a part of this Resolution, and all of the terms and conditions contained in any such supplemental resolution as to any provision authorized to be contained therein and shall be deemed to be part of the terms and conditions of this Resolution for any and all purposes. In case of the adoption and approval of any supplemental resolution, express reference may be made thereto in the text of any Bonds issued thereafter, if deemed necessary or desirable by the City. ARTICLE VIII DEFEASANCE If, when any Series of Bonds secured hereby shall have become due and payable in accordance with their terms or shall have been duly called for redemption, the whole amount of the principal and the interest and premium, if any, so due and payable upon all of the Bonds of such Series then Outstanding shall be paid, and provision shall also be made for paying all other sums payable hereunder by the City, then and in'that case the right, title and interest of the Bondholders of the Bonds of such Series secured hereby in the revenues, funds and accounts relating to such Series of Bonds mentioned in this Resolution shall thereupon cease, determine and become void on (that date without further action of the Council, and the Finance Director may apply any surplus in any account in the Debt Service Account and all balances remaining in any other funds or accounts relating to such Series of Bonds, other than moneys held for the redemption or payment of Bonds, to the General Fund; otherwise this Resolution shall be, continue and remain in full force and effect; provided, however, that in the -16- event Defeasance Obligations shall be held by the City as hereinabove provided, the Clerk shall within thirty (30) days after such Defeasance Obligations shall have been acquired 1 cause a notice signed by the Finance Director to be published in the City, and in a Daily Newspaper of general circulation or 2 1 a financial journal published in the Borough of Manhattan, County and State of New York, setting forth (a) the date 3 designated for the redemption of the Bonds or a statement to the effect that such Bonds are to be paid at their respective 4. maturities or mandatory redemption dates, (b) a description of the Defeasance Obligations so held by the City, and (c) that S this Resolution has become void in accordance with the provisions of this Section. 6 All moneys and obligations held by the City pursuant 7 to. this Section shall be held in trust and the principal and interest of said obligations when received, and said moneys, g applied to the payment, when due, of the principal and the interest and the premium, if any, of the Bonds so called for 9 redemption. 10 ARTICLE IX 11 MISCELLANEOUS PROVISIONS 12 Section 9.01. Execution of Instruments __by_ Bondholders 13 and Proof of Ownership of Bonds. Any request, direction, consent or other instrument in writing required by this 14 Resolution to be signed or executed by Bondholders may be in any number of concurrent instruments of similar tenor and may 15 be signed or executed by such Bondholders in person or by agent appointed by an instrument in writing. Proof of the execution 16 of any such instrument and of the ownership of Bonds shall be sufficient for any purpose of this Resolution and shall be 17 conclusive in favor of the persons relying thereon with regard to any action taken by them under such instrument, if made in 18 the following manner: 19 (a) The fact and date of the execution by any person of any such instrument may be proved by the 20 verification of any officer in any jurisdiction who, by the laws thereof, has power to take affidavits 21 within such jurisdiction, to the effect that such instrument was subscribed and sworn to before him, or 22 by an affidavit of a witness to such execution. 23 (b) The ownership of the Bonds shall be proved by the registration books kept under the provisions of 24 Section 2.04 of this Resolution. 25 Any request or consent of the Bondholder of any Bond shall bind every future Bondholder of the same Bond in respect 26 of anything done by the City in pursuance of such request or consent. 27 Section 9.02. Effect of Covenants. All covenants, 26 stipulations, obligations and agreements of the City bontained in this Resolution shall be deemed to be covenants, 29 stipulations, obligations and agreements of the City and of the Council and of each department and agency of the City to the 30 full extent- authorized or permitted by law, and all such covenants, stipulations, obligations and agreements shall bind 31 or inure to the benefit of the successor or successors thereof from time to time and any officer, board, body or commission to 32 hom or to which any power or duty affecting such covenants, stipulations, obligations and agreements shall be transferred 33 y or in accordance with law. 34 -17- Except as otherwise provided in this Resolution, all rights, powers and privileges conferred and duties and liabilities imposed upon the City or upon the Council by the 1 provisions of this Resolution shall be exercised or performed by the Council, or by such other officers, board, body or 2 commission as may be required by law to exercise such powers or to perform such duties. 3 No covenant, stipulation, obligation or agreement 4 1 herein contained shall be deemed to be a covenant, stipulation, obligation or agreement of any member, agent or employee of the S Council in his individual capacity, and neither the members of the Council nor any official executing the Bonds shall be 6 liable personally on he Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. 7 Section 9.03. Manner of Giving Notice. Any notice, 6 demand, direction, request or other instrument authorized or required by this Resolution to be given to or filed with the 9 City or the Council shall be deemed to have been sufficiently given or filed for all purposes of this Resolution if and when 10 sent by registered mail return receipt requested; 11 to the City and Council, and if addressed to the Finance Director: City of Tamarac, 5811 Northwest 88th 12 Ave., Tamarac, Florida 33321. 13 Section 9.04. Successorship of PaXin2 A ents. Any bank or trust company with or into which the Paying Agents, or 14 any of them, may be merged or consolidated, or to which the assets and business of the Paying Agents, or any of them, may 1S be sold, shall be deemed the successor of such Paying Agents for the purposes of this Resolution. If the position of the 16 Paying Agents, or any of them, shall become vacant for any 1 reason, the Council shall, within thirty (30) days thereafter, 17 appoint a bank or trust company located in the State of Florida, if the vacancy is in the position of a Florida Paying 16 Agent or located in the Borough of Manhattan, City and State of New York if the vacancy is in the position of a New York Paying 19 Agent. 20 1 Section 9.05. Successorship of City Officers. In the event that the office of the Clerk, Finance Director or City 21 Attorney shall be abolished or any two or more of such offices shall be merged or consolidated, or in the event of a vacancy 22 in any such office by reason of death, resignation, removal from office or otherwise, or in the event any such officer 23 shall become incapable of performing the duties of his office by.reason of sickness, absence from the City or otherwise, all 24 powers conferred and all obligations and duties imposed upon such officer shall be performed by the officer succeeding to 25 the principal functions thereof or by the officer upon whom 26 such powers, obligations and duties shall be imposed by law. 27 Section 9.06. Substitute Publication. If, because of the temporary or permanent suspension of publication of any 2B Newspaper or financial journal or for any other reason, the City shall be unable to publish in a Newspaper or financial 29 journal any notice required to be published by a provision of this Resolution, the City shall give such notice in such other 30 manner as in its judgment shall most effectively approximate such publication, and the giving of such notice in such manner 31 shall for all purposes of this Resolution be deemed to be in compliance with the requirement for the publication thereof. 32 Section 9.07. Effect of Partial Invalidity. In case any one or more of the provisions of this Resolution tian or of any Bonds issued hereunder shall for any reason be held to be 34 illegal or invalid, such illegality or invalidity shall not -18- 1 affect any other provisions of this Resolution or of the Bonds, but this Resolution and the Bonds shall be construed and enforced as if such illegal or invalid provision had not been 1 contained therein. The Bonds are issued and this Resolution is adopted with the intent that the laws of the State of Florida 2 shall govern their construction. 3 S 6 7 8 9 10 11 12 13 14 Section 9.08. Validation of Bonds. The City Attorney is hereby authorized and directed to take proper proceedings for the validation of the Bonds authorized by Section 2.06 of this Resolution. Section 9.09. Inconsistent Resolutions. All resolutions and parts thereof which are inconsistent with any of the provisions of this Resolution are hereby declared to be inapplicable to the provisions of this Resolution. Section 9.10. Further Acts. The officers and agents of the City are hereby authorized and directed to do all the acts and things required of them by the Bonds and this Resolution, for the full, punctual and complete performance of all of the terms, covenants, provisions and agreements contained in the Bonds and this Resolution. Section 9.11. Headin headings preceding the texts Sections hereof and any table footnotes appended to copies convenience or reference, and this Resolution, nor shall construction or effect. 3 Not Part of Resolution. Any of the several Articles and of contents, marginal notes or hereof shall be solely for shall not constitute a part of they affect its meaning, 15 Section 9.12. City and Bondholders Alone Have Rights 16 Under Resolution. Except as herein otherwise expressly provided, nothing in this Resolution, expressed or implied, is 17 i.ntended or shall be construed to confer upon any person, firm or corporation, other than the City and the owners of the Bonds is issued under and secured by this Resolution, any right, remedy or claim, legal or equitable, under or by reason of the 19 Resolution or any provision hereof, this Resolution and all its provisions being intended to be and being for the sole and 20 exclusive benefit of the City and the owners from time to time of the Bonds issued hereunder. 31 Section 9.13. Resolution Effective. This Resolution 22 shall take effect upon its adoption. /��J 23 PASSED, ADOPTED AND APPROVED this � �14 day of 1986 24 ATTEST: li 25 CITY CLER MAY 26 I HEREBY CERTIFY that I have 27 approved the form and corrections of this Resq-lUtion 29 29 [CITY ATTORNEY 30 14591D 072186/3/IDT 31 68687.0003 32 33 34 RECORD OF COUNCii. VOTE MAYOR: HART DIET, i.: (,,,/W MASSARO Di" t. 2: t%M S.T E LZER ...._.� .�. DIST. 3 C/M GOTTESMAN DIST. 4: G'/M STUN -19- INDEX 1 2 3 4, S 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 fAcLe PREAMBLE ............................................ 1 ARTICLE I DEFINITIONS Section 1.01 Meaning of Words and. Terms......... 1 Section 1.02 Construction of Words .............. 5 Section 1.03 Findings. .......................... 5 ARTICLE II FORM, EXECUTION, DELIVERY AND REGISTRATION OF BONDS Section 2.01 Issuance of Bonds. ..... ......... 5 Section 2.02 Terms, Medium and Place of Payment. 6 Section 2.03 Execution and Form of Bond......... 6 Section 2.04 Bond Registrar and Registration Exchange ........................ 6 Section 2.05 Ownership of Bonds; Transfer of Title ........................ 7 Section 2.06 Issuance of Bonds; Award Resolution; Application of Bond Proceeds.... 7 Section 2.07 Mutilated, Lost, Stolen, or Destroyed Bonds ................. 8 Section 2.08 Temporary Bonds .................... Section 2.09 Cancellation and Destruction of Bonds ........................... 9 ARTICLE III REDEMPTION OF BONDS Section 3.01 The Bonds Redeemable ............... 9 Section 3.02 Notice of Redemption ............... 9 Section 3.03 Effect of Redemption Call.......... 9 Section 3.04 Selection of Bonds to be Redeemed.. 10 ARTICLE IV CONSTRUCTION FUND Section 4.01 Construction Fund .................. 10 Section 4.02 Payments from Construction Fund.... 10 Section 4.03 Cost of Project .................... 10 Section 4.04 Disposition of Construction Fund Balance .......................... 11 ARTICLE V REVENUE AND FUNDS Section 5.01 Levy of Ad Valorem Tax; Payment and Pledge....... ...... ...... 11 Section 5.02 Creation of Debt Service Fund and Certain Accounts........ ...... 11 Section 5.03 Withdrawls from General Fund, Excess Moneys.. .. ... ........ 11 Section 5.04 Withdrawals from Debt Service Account ... ........ ........... 12 Section 5.05 Moneys Set Aside Held in Trust; Unclaimed Moneys ................ 12 -20- ARTICLE VI INVESTMENT OF ACCOUNTS DEPOSITARIES AND SECURITY 1 2 Section 6.01 Investment of Accounts ............. Section 6.02 Accounts and Subaccounts........... 3 Section 6.04 Arbitrage and Tax Covenants........ 4 ARTICLE VII 5 SUPPLEMENTAL RESOLUTIONS 6 Section 7.01 Supplemental Resolution without Bondholders' Consent............ 7 Section 7.02 Supplemental Resolution With Bondholders' Consent............ 6 Section 7.03 Supplemental Resolution Part of Resolution .............. 9 ARTICLE VIII 10 DEFEASANCE 11 12 ARTICLE IX MISCELLANEOUS PROVISIONS 13 Section 9.01 Execution of Instruments by 14 Bondholders and Proof of Ownership of Bonds .............. 15 Section 9.02 Effect of Covenants ................ Section 9.03 Manner of Giving Notice............ 16 Section 9.04 Successorship of Paying Agents..... Section 9.05 Successorship of City Officers..... 17 Section 9.06 Substitute Publication ............. Section 9.07 Effect of Partial Invalidity....... 18 Section 9.08 Validation of Bonds ................ Section 9.09 Inconsistent Resolutions........... 19 Section 9.10 Further Acts....... ............... Section 9.11 Headings Not Part ofResolution.... 20 Section 9.12 City and Bondholders Alone Have Rights Under Resolution.... 21 Section 9.13 Resolution Effective ............... 22 23 24 25 26 27 28 29 30 31 32 33 34 -21- 12 12 13 14 15 16 17 17 18 18 18 18 18 19 19 19 19 19 19 I i No. 1 2 3 5 6 7 6 9 10 11 12 13 14 15 16 17 1B 19 20 21 22 23 24 25 26 27 26 29 30 31 32 33 34 INTEREST RATE: REGISTERED OWNER: PRINCIPAL AMOUNT: EXHIBIT I United States of America State of Florida County of Broward CITY OF TAMARAC General Obligation Bond (City Hall Project) Series 1986 MATURITY DATE: ORIGINAL ISSUE CUSIP NO. DOLLARS - The City of Tamarac (the "City"), a municipal corporation organized and existing under the laws of the State of Florida, for value received, hereby promises to pay the registered owner named above, on the maturity date set forth above, upon presentation and surrender of this Bond at the principal corporate trust office of , as paying agent (said and/or any bank or trust company to become successor paying agent being herein called "Paying Agent"), the principal sum set forth above and to pay, interest thereon at the interest rate per annum set forth above until payment of such principal sum, such interest to the maturity hereof being payable initially on October 1, 1986, and semiannually thereafter on the lst day of April and October of each year; provided however, that if on the maturity date of this Bond, moneys are being held by the Paying Agent for the payment hereof, this Bond shall cease to bear interest. The principal of, premium, if any, and the interest on this bond are payable in any coin or currency of the United States of America, which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. This Bond shall bear interest from the interest payment date next preceding the date of registration hereof unless this Bond is registered as of an interest payment date, in which event this Bond shall bear interest from such date, or unless it is registered prior to the first interest payment date, in which event this Bond shall bear interest from its date. Interest on this Bond shall be paid by check or draft of the Paying Agent mailed to the registered owner at his address as it appears on the registration books maintained by , as Bond Registrar, at the close of business on the Record Date (as defined herein) with respect to each interest payment date. The City and the Bond Registrar are not required to issue and transfer this Bond during the period beginning on the fifteenth (15th) day (whether or not a business day) of the month next preceding any interest payment date (the "Record Date") and ending on the iinterest payment date. For• the prompt payment of both principal hereof and interest hereon as the same shall fall due, the full faith, credit and taxing power of the City are hereby irrevocably pledged. All acts, conditions and things required by the Constitution and laws of the State of Florida, and the ordinances and resolutions of the City, to happen, exist and be performed precedent to and in the "issuance of this bond have happened, exist and have been performed as so required. I-1 11 This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution (as defined, herein) until the Bond Registrar's 1 Certificate hereon shall have been duly executed by the Bond Registrar. 2 3 5 [j 7 8 9 10 11 12 13 14 15 16 17 is 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 IN WITNESS WHEREOF, the City of Tamarac has caused this bond to be signed by or bear the facsimile signature of its Mayor. and City Manager and the City Clerk and a facsimile of its official seal, to be imprinted hereon, all as of the day of , 198 . [SEAL] [facsimile] City Clerk [facsimile] Mayor [facsimile] City Manager BOND REGISTRAR'S CERTIFICATE Date of Registration: , as Bond Registrar By: Authorized Officer [FORM ON REVERSE SIDE OF BOND] STATEMENT OF VALIDATION This bond is one of a series of bonds which were validated by judgment of the Seventeenth Judicial Circuit of Florida in and for the County of Broward, rendered on , 19 . This Bond is one of a duly authorized series of bonds of the City designated as GENERAL OBLIGATION BONDS (City Hall Project), Series 1986 (the "Bonds"), issued for the purpose of providing funds to pay the cost of planning, constructing, installing, equipping and developing a new City Hall, all of like date and issued or to be issued under and pursuant to Resolution No. R-84-121, duly adopted on April 25, 1984 by the City Council of the City as amended and restated by Resolution No. , duly adopted on , 1986 by the City Council of the City (collectively the "Resolution"), reference to which and to a certain resolution adopted pursuant thereto is hereby made for the provisions, among others, with respect to the custody and application of the proceeds of the Bonds, the rights, duties and obligations of the City under the Resolution and the rights of the owners of the Bonds, and, by the acceptance of this bond, the owner hereof assents to all the provisions of the Resolution and such subsequent resolution. This Bond is issued and the Resolution was adopted under the authority of the Constitution and laws of the State of Florida, the City of Tamarac Home Rule Charter, as amended I-2 (the "Charter") and the Code of the City. The issuance of the Bonds was duly approved by a majority of the qualified voters of the City of Tamarac voting thereon at an election duly 1 called and held for that purpose. 2 REDEMPTION PROVISIONS 3 4. [To be established by resolution duly adopted by the Council] 5 If less than all of the Bonds of like maturity of any 6 series shall be called for redemption, the particular Bonds or portions of Bonds to be redeemed shall be selected by lot as 7 provided in the Resolution. 8 If any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by 9 the Bond Registrar by mailing a copy of such notice by first-class mail, postage prepaid, not less than thirty (30) 10 days or more than sixty (60) days before such redemption date, to the -registered owner of any Bond which is to be redeemed at 11 his last address appearing on the registration books. On the date designated for redemption, notice having been mailed, all 12 as provided in the Resolution, the Bonds so called for redemption shall become and be due and payable at the 13 redemption price provided for redemption of such Bonds on such date, interest on such Bonds shall cease to be entitled to any 14 lien, benefit or security under the Resolution, and the registered owners of such Bonds shall have no rights in respect 15 thereof except to receive payment of the redemption price thereof. 16 The registered owner of this Bond shall have no right 17 to enforce the provisions of the Resolution, or to institute action to enforce the covenants therein, or to take any action 18 with respect to any event of default under the Resolution, or to institute, appear in or defend any suit or other proceeding 19 with respect thereto, except as provided in the Resolution. 20 Modifications or alterations of the Resolution or of any resolution supplemental thereto may be made only to the 21 extent and in the circumstances permitted by the Resolution. 22 In certain events, on the conditions, in the manner and with the effect set forth in the Resolution, the principal 23 of all the Bonds then outstanding under the Resolution may become or may be declared due and payable before the stated 24 maturities thereof, together with interest accrued thereon. 25 This Bond shall be registered as to both principal and interest and shall not be registered as to "bearer." 26 The person in whose name any Bond shall be registered 27 shall be deemed and regarded as the absolute owner thereof for all purposes and payment of or on account of the principal of 28 or interest on any such Bond shall be made only to or; upon the order of the registered owner thereof or his legal 29 representative, but such registration may be changed as herein provided. All such payments shall be valid and effectual to 30 satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. 31 32 Any registered owner of any Bond is hereby granted power to transfer absolute title thereto by assignment thereof to a bona fide purchaser for value (present or antecedent) 33 without notice of prior defenses or equities or claims of 34 ownership enforceable against his assignor or any person in the I-3 . 1 2 3 4 5 s 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 chain of title and before the maturity of such Band. Every prior owner of any Bond shall be deemed to have waived and renounced all of his equities or rights therein in favor of every such bona fide purchaser, and every such bona fide purchaser shall acquire absolute title thereof and to all rights represented thereby. (Form for Transfer) FOR VALUE RECEIVED, , the undersigned, hereby sells, assigns and transfers unto (Tax Identification or Social Security No. the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: I-4 �, � 5 0 'R111UMINARY OFFICIAL STAT11 MINT DATIO JULY 46, 49" In the opinion of Bond Counsel, the interest on the Bonds is. under existing statutes and judicial decisions, exempt from all present federal income taxes subject, however, to pending federai tax legislation as more fully described herein under the heading .,Pending Federal Tax Legislation" and the Bonds and the Income thereon are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, on Interest, income or profits on debt obligations owned by corporations, as defined in said Chapter 220. Florida Statutes. $69000,000*`� CITY OF TAMARAC, FLORIDA General Obligation Bonds (city Hall Project) Series �i98b oa*&- J� 4. 4966 Due: october 1. as shown below The Bonds are being issued for the purpose of financing the construction of a new City Hall as descnbec herein. The Bonds are being issued pursuant to Resolution No. R-84-121, adopted by the City Council of "he City on April 25, 1984, as supplemented, amended and restated. and the Constitution and laws of the State of Florida. the City's Home Rule Charter. the City Code. and Chapter 166. Florida Statutes, The Bonds were duly approved by a majority of the votes cast in an eiectlon held on March 13. 1984, The Bonds were validated by a Judgment rendered by the Circuit Court in and for Broward County dated July 20. 1984 and tho time for taking an appeal has expired without any such appeal being taken. The City pledges Its full faith, credit and taxing power for the prompt payment of both principal of. redemption premium, if any, and Interest on the Bonds as such payments become due. The principal of, redemption premium. If any, and the interest on all such Bonds shall be payable from the General Fund or any other legally available funds of the The City shall levy and collet, annually an ad valorem tax upon all taxable property In the C , ver and above all other taxes authorized to be levied by the City, sufficient to pay such print! 1fir ptlon premium, if any, anc Interest as the some become due and payable. The Bonds shall be Issued only In registered form in the denom on of S5,000 each or any integro multiple thereof. Interest on the Bonds is payable semiannually on April 1 and October 1, commencinC October 1,1966, by checks or drafts mailed to the registered owners thereof, drawn on Barnett Banks Trus- Company. N.A., Jacksonville, Florida (the "Paying AWf1.The principal of the Bonds and the premium, i any, payable upon redemption, are payable at the principal corporate trust office of the Paying AgenT The Bonds shall be subject to redemption as set forth herein. The Bonds shall bear interest at the rates anc shall mature in the amounts and on the dates as sot forth below. S Price tMMclpd Inter" or DUO AmarM Rafo� YW" 1987 1988� 1989� 1990 1991 Serial Bonds I"" Mnclpvt ln%KW or DUO Amount Rafe YIMd 1992 1993 1994 1995 1996 S % Term Bonds due October 1, 2006: Price (Plus accrued interest from July 1, 1986) /�J The Bonds are offered hen. as and If issued and received by the Underwrite, subject to the receipt of the unqual ed aopraval of legality by Fine Jacobson Schwartz Nash Block & England, Miami. Florida, Bon Counsel. Certain other legal matters will be passed upon for the C'n by legal matters will be passed upon by If 91 ksSc orr and Soli Cohen. West Perim a Beach, Florida, Counsel to the Unde It�r I is a acted that t Bond defini- T-c tive form will be available for dells ew ork, on or about u 4. 1986. r L.F. ROTHSCHILD, UNTERBERG, OWBIN, INC Dated: July . 4986 CITY OF TAMARAC, FLORIDA MAYOR Bernard Hart CITY COUNCIL Bernard Hart, Mayor Jack Stelzer, Vice -Mayor Helen Massaro Arthur Gottesman Sydney M. Stein FINANCE DIRECTOR Frank M. Etheredge CITY MANAGER John Kelly . CITY CLERK Marilyn P. Bertholf CITY ATTORNEY A. Bryant Applegate BOND COUNSEL Fine Jacobson Schwartz Nash Block S England, P.A. Miami, Florida CJ No dealer, broker, salesman or other person has been authorized to give any information or make any representation, other than in this Official Statement, and if given or made, such other information or representations must not be relied upon. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information contained in this Official Statement has been obtained from public documents, records and other sources considered to be reliable and, while not guaranteed as to completeness or accuracy, is believed to be correct. Any statements in this Official Statement involving estimates, assumptions and matters of opinion, whether or not so expressly stated, are intended as such and not as representations of fact, and the City expressly makes no representation that such estimates, assumptions and opinions will be realized or fulfilled. Any information, estimates, assumptions and matters of opinion contained in this Official Statement are subject to change without notice, and neither the delivery of this Official Statement, nor any sale made hereunder, shall under any circumstances, create any implication that there has been no change in the affairs of the City since the date thereof. IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITERS MAY OVER -ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF SUCH BONDS AT A LEVEL ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. TABLE OF CONTENTS Page Introduction . . . . . . . 1 The Bonds . . . . 1 2 Redemption Provisions* a Security for the Bonds . . . . . . . . • • • 3 . 1 4 Pu rpose . . . . . . . . . . Application of Bond Proceeds . . . . . . . . 4 Estimated Sources and Uses of Funds. . . 9 4 Annual Debt Service Requirements. . . . . . . . . . 5 The City . . . . . . . . . . . . . . . . . . . . . . 6 8 Fiscal Year . . . . . . . . . . . . . . . . . 8 Ad Valorem Taxation 9 Assessed Value of Taxable Property. Property Tax Rates 10 11 Property Tax Levies and Collections Direct and Overlapping Debt . . 12 Budgeting, Accounting and Auditing . . . . . . . . . 14 Investment Management . . 14 15 Operating Budget for Fiscal Year Ended 1 5 . . . . . . . . . . Operating Budget for Fiscal Year Ende 986 . 15 Pension Fund . . . . . Underwriting . . . . . . . 15 16 . 16 Legality . . . . . . 16 Tax Exemption . . . . . . . . . . . S,41AAwz9 Pending Federal Tax Legislation . . . . . . - . . . . . 16 Litigation . . . . . . . . . . 17 Validation . . . 18 Accounting . . . . . . . 1 Q Bonds Ratings . . . . . . 19 Authorization Concerning Official Statement . . 19 Appendices A. General Information with Respect to the City B. Audited Financial Statements of the City C. Summary of Certain Provisions of the Resolution D. Form of Bond -Counsel Opinion 0 0 J/ CITY OF AMAliAC,7 FLORIDA General Obligation Bonds (City Hall Project) Series 1986 INTRODUCTION This Official Statement of the City of Tam lac, F rida (the "City") is provided to furnish certain in f mation with r pect the original issuance and sale of its General Obl i ga ' n ds, ries 6, to be issued in the aggregate principal amount of $ the onds). The Bonds will be issued pursuant to the authority of the Cons ' 'tion and laws of the State of Florida, including specifically Chapter 1 Florida Statutes, the Home Rule Charter of the City (the "City Charter") esolution No. R-84-121, passed and adopted by the City Council of the on April 2S, 1984, as amended and restated by Resolution No. , passed and adopted by the City Council on July 23, 1986, (said resolutions being collectively referred to as the "Bond Resolution") and a resolution adopted in furtherance thereof. The Bonds are being issued for the purpose of providing funds, together with other available funds of the City, (i) to construct and furnish a City Hall and (ii) to pay related costs and expenses in connection with the issuance of the Bonds. The Circuit Court for Broward County, Florida validated the Bonds on July 20, 1984. The permitted period of thirty (30) days during which an appeal could have been taken from the validation judgment expired without any such appeal being taken. The City has appointed Barnett Banks Trust Company, N.A., Jacksonville, Florida, as Bond Registrar and Paying Agent (the "Bond Registrar" and "Paying Agent") under the Bond Resolution. THE BONDS The Bonds will be issued in the aggregate principal amount of will be dated July 1, 1986, will bear interest at the rates set orth on the cover page hereof, payable semiannually on April 1 and October 1 of each year commencing October 1, 1986, and will mature on October 1 in the years and in the principal amounts set forth on the cover page hereof. Interest on the Bonds shall be paid by check or draft of the Paying Agent mailed to the registered owner at the owner's address as it appears on the registration books maintained by the Bond Registrar. The principal on the Bonds shall be payable upon the presentation and surrender thereof as the same becomes due at the principal corporate trust office of the Paying Agent. The Bonds will be issuable in fully registered form in the denomination of $S,000 or any integral multiple thereof and will be fully registered on the books of the ond Registrar. * Est' ate, subject to change. �..� - 1 - The Bonds may be exchanged for a like aggregate principal amount of bonds of other authorised denominations of the same series, interest rate and maturity. The Bonds may be transferred only upon an assignment duly executed by the registered owner or the owner's attorney or legal representative in such form as shall be satisfactory to the Bond Registrar, such transfer to be made on such books by the Bond Registrar. No charge shall be made to any Bondholder requesting such registration, transfer or exchange granted in the Bond Resolution, but any Bondholder requesting such registration, transfer or exchange shall pay taxes or other governmental charges required to be paid with respect thereto. The City and the Bond Registrar are not required to issue and transfer any Bond during the period beginning on the fifteenth (15th) day of the month next preceding any interest payment date. The Bond Registrar shall not be required to transfer or exchange any Bond after notice calling for such Bond or portion thereof for redemption has been given as provided In the Bond Resolution or during the period of fifteen (15) days next preceding such notice of redemption. REDEMPTION PROVISIONS Optional Redemption The Bonds maturing on or after October 1, 1997 are subject to redemption prior to their stated maturity dates, at the option of the City, on October 1, 1996 or any date thereafter if redeemed in whole, or on any i terest payment date thereafter If redeemed in part, in inverse order of maturity, such redemption to be by lot within a maturity if less than all, redemption prices (expressed as percentages of the principal amount of being redeemed) plus accrued interest to the redemption date: Redemption Date Redemption (Both Dates Inclusive) Price October 1, 1996 to September 30, 1997 y� 102% October 1, 1997 to September 30, 1998 '� - 101% October 1, 1998 and thereafter r 11,V ��'7 100$ Mandatory Redemption The Bonds maturing on October 1, 20 (the "Term Bonds") are subject to mandatory redemption prior to maturity by lot in such manner as the City may deem appropriate, at a redemption rice of par }plus accrued interest to the redemption date, on October 1, 19 and on each October 1 thereafter, in the following principal amounts from Amortization Installments in the years specified: E lam Year 1997 1998 1999 2000 2001 * Final Maturity Notice of Redemption Principal Amount Year 2002 2003 2004 2005 2006* Principal Amount R u At least thirty (30) days, but not more than sixty (60) days, before the redemption date, whether in whole or in part, notice of redemption shall be mailed by the City Clerk, by first class mail, postage prepaid, to all registered owners of the Bonds at their addresses as they appear on the registration books of the City maintained by the Bond Registrar, but failure to mail any such notice shall not affect the validity of the proceedings for such redemption. SECURITY FOR THE BONDS The City pledges its full faith, credit and taxing power for the prompt payment of both principal of, redemption premium, if any, and interest on the Bonds as such payments become due. The principal of, redemption premium, if any, and the interest on all such Bonds shall be payable from the General Fund or any other legally available funds of the City. The City shall levy and collect annually an ad valorem tax upon taxable property in the City, over and above all other taxes authorized to be levied by the City, sufficient to pay principal, redemption premium, if any, and interest as the same become due and payable. MMI PURPOSE The Bonds are being issued for the municipal purpose of financing the cost of design, plans, construction and installation of a new City Hall including all equipment, furniture and other related items thereto (the "Project" ) . New City Hall_(2 Story) 46,310 Square Foot Building Architect and Engineer Fees Carpet, Furnishings S Equipment CITY HALL TOTAL Sitework 13acres SITEWORK TOTAL PROJECT TOTAL $3,742,000 325,000 68. 9000 $ 600,000 APPLICATION OF BOND PROCEEDS $4,755,000 $ 600,000 $S,35S,000 • After payment of cost of issuance, underwriter's discount and the deposit to the debt service fund of accrued interest, the remaining Bond proceeds shall be deposited in the Construction Fund and shall be held by the Finance Director and applied to the payment of the Cost of the Project in such manner as shall be consistent with the City's policies respecting the disbursement of moneys in connection with the Project. Any moneys remaining in the Construction Fund when construction is completed shall be deposited in the General Fund of the City. ESTIMATED SOURCES AND USES OF FUNDS Sources of Funds Principal Amount of Bonds Accrued Interest TOTAL SOURCES:' Uses of Funds Deposit to Construction Fund Deposit to Bond Service Account(1) Costs of Issuance Underwriter's Discount TOTAL USES: (1) Accrued Interest - 4 - • 0 ANNUAL DEBT SERVICE REQUIREMENTS Set forth below are the annual debt service requirements for the Bonds on a fiscal year basis. The City's fiscal year runs from October 1 to September 30. Fiscal Year Ending ,September 30 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Principal Payment - S - Interest Payment Total Debt Service a Lis. I*W, THE CITY General Created in 1963 by the Legislature o f The City is located on the semi -tropical coastal ridge between the Everglades and the Atlantic Ocean. The terrain is generally flat, with developed land elevations varying from approximately 4 to 22 feet above mean sea level. The sub -tropical climate provides comfortable living year round. The City is warmed by the trade winds of the Gulf Stream, thus making the winters sunny and pleasant with temperature readings averaging 66 degrees, and also cooled by the same trade winds in later months so that the summers are cool and comfortable with an average temperature reading of about 83 degrees. The average temperature for the year is approximately 74 degrees. Government The City is governed largely by the provisions of its Charter as adopted by the electors of the City on March 9, 1976, as amended from time to time. Under the Charter, the five -member City Council is the policy -making body of the City government. The City is divided into four districts, and each Council member is required to reside in a different one of these districts. The Mayor, who runs "at large", may live in any district. Electors vote for each Council seat and not just for the representative of the district in which they live. City Council members serve for two years. The Mayor and the two Council members from Districts 2 and 4 run for election in even -numbered years and two Council members from Districts 1 and 3 run In odd -numbered years. The City has a City Manager form of government. The City Manager is appointed by the City Council as the Chief Administrative Officer of the City government. The City Manager directs the functions of the City government through 11 departments. Legal services of the City government are provided by. the City Attorney, who is appointed by the City Council. 9 - 6 - 0 CITY OF TAMARAC CITY OFFICIALS Mayor and other Council Members Bernard Hart Mayor Jack Stelzer Vice -Mayor Sydney Stein Councilman Arthur Gottesman Councilman Helen Massaro Councilwoman City Manager and Department Heads John Kelly City Manager A. Bryant Applegate City Attorney Marilyn Bertholf City Clerk Frank M. Etheredge Finance Director Michael Couzzo, Jr. Public Works Director Judy Deutsch Personnel Director Joseph McIntosh Police Chief Bernard Simon Fire Chief William Greenwood Utilities Director Robert Jahn Building Official . Utility System The City owns and maintains a Water and Sewer System ("the System"), which supplies retail and commercial water and sewer service to the western portion of the City. The System's retail service area includes approximately 99% of the current population of the City. The water treatment plant has a present 12 million gallon per day capacity. The sewerage treatment capacity is presently 4.9 million gallons per day. The City Council on January 22, 1986, voted to pursue rejoining the Broward County 201 Regional Wastewater Treatment System ("Broward County Utilities"). The City has existing capacity of 2.41 mgd with Broward County Utilities as stated in an Agreement dated March 13, 1985. In addition, the City has leased capacity from other municipal large users for an additional capacity of 4.5 mgd. A listing of the City's total treatment and transmission capacity and agreement dates is as follows: Treatment Capacity Agreement WUJ Agency _ (mgd) Date Broward County Utilities 2.41 3/13/85 Pompano Beach 2.00 5/ 14/ 86 a Deerfield Beach 1.00 5/14/86 Broward County Utilities 1.50 4109/86 W 6.9104 - 7 The City's utilities are presently treating approximately 4.2 mgd and conveying 1.0 mgd to Broward County Utilities for treatment and disposal. Broward County Utilities proposed to construct and complete a new treatment plant expansion of approximately 20 mgd by December, 1990, at which time all the new treatment and transmission capacity will be reallocated among the larger users, depending on existing and projected needs. Operation of the System is supported solely by revenues from customers served. No funds will be derived from general taxation or any other City tax or revenue source apart from anticipated system revenues. Sewer rates are calculated annually to meet anticipated cash needs, net of other sewer related revenues, for the ensuing fiscal year. CITY OF TAMARAC REVENUE BOND COVERAGE LAST SIX FISCAL YEARS Net Revenue Available Fiscal Gross Operating For Debt Year Revenue (1) Expenses (2) Debt Service Service Coverage 1985 $5,626,486 $3,991,257 $1,635,229 $1,275,768 1.28 1984 5,609,226 3,594,640 2,014,586 1,276,000 1.58 1983 5,298,S42 3,553,122 1,745,420 1,274,000 1.37 1982 4,907,357 3,055,857 1,851,500 1,276,000 1.45 1981 4,716,779 2,104,553 2,612,226 1,242,000 2.10 1980 3,738,729 1,845,943 1,893,686 756,000 2.50 (1) Includes Water and Sewer Revenue, Meter Installation, Interest Income, and Grant Income. (2) Does not include Depreciation, Amortization or Interest Expense. FISCAL YEAR The City operates on a fiscal year which commences on October 1 and ends on September 30. AD VALOREM TAXATION Under State law, the assessment of all properties and the collection of all county, municipal and school board property taxes are consolidated in the office of the County Property Appraiser and County Tax Collector. Municipalities are not permitted to levy property taxes at a rate of more than 10 mills for all municipal purposes; however, there is no limitation as to the rate or amount of ad valorem taxes levied for the purpose of paying debt service on general obligation bonds. The laws of the State regulating tax assessment are designed to assure a consistent property valuation method statewide. - 8 - 11 0 Property Assessment Procedure Under Florida law, all taxable real property and tangible personal property must be assessed at fair market value, with some exceptions. Real and personal property valuations are determined each year as of January 1 by the Property Appraiser's office. The assessment roll is prepared between January 1 and July 1, with each taxpayer given notice of any increase in assessment. The property owner has the right to file an appeal with the Property Appraisal Adjustment Board, which considers petitions relating to assessments and exemptions. The Property Appraisal Adjustment Board certifies the assessment roll upon completion of the hearing of all appeals. Millage rates are then computed by the various taxing authorities and certified to the Property Appraiser, who applies the millage rates to the assessment roll. This procedure creates the tax roll, which is then turned over to the Tax Collector on or about the first Monday in October. The Florida Constitution entities the taxable permanent residents of the State to a $25,000 homestead exemption. CITY OF TAMARAC, FLORIDA ASSESSED VALUE OF TAXABLE PROPERTY Fiscal Tax Roll Real Personal Year Year Property.Property 1976 1975 $362,609,589 $31,267,101 1977 1976 388,502,239 37,945,987 1978 1977 400,476,540 47,315,738 1979 1978 406,095,065 47,315,738 1980 1979 419, 149, 660 43, 366, 948 1981 1980 451,656,511 44,850,931 1982 1981 675,855,144 50,689,450 1983 1982 783,782,924 61,819,480 1984 1983 773, 507, 476 61, 170, 673 �985 1984 820,073,350 69,507,244 / ,1986 1985 73, 118, 090 ' L ,s QeZ _-7 ,173,yoS State law requires full valuation. Assessed values as of January of each year. Figures submitted by County Tax Assessor. (1) No longer applicable. Levv of Ad Valorem Taxes Adjusted Taxable Exempt _(1) Value $14,460,670 $407,337,360 16,439,610 442#887,836 20,897,287 468,689,565 20,806,006 474,216,809 23,456,090 485,972,698 27,837,436 524,344,878 2,588,622 729,133,216 n/a 845,602,404 n/a 834,678,149 n/a 889,580,594 n/a , i/$ 9A y 3 iT 0, gyS y0`7 All real and tangible personal property taxes are due and payable on November 1 of each year, or as soon thereafter as the tax roll is certified and delivered to the Tax Collector. A notice is mailed to each property owner on the tax roll for taxes levied by the county, school board and other taxing authorities. Taxes may be paid upon receipt of such notice, with discounts at the rate of 4% If paid in the month of November; 3% if paid in the month of - 9 - December; 2% if paid in the month of January; and 1% if paid In the month of February. Taxes paid during the month of March are without discount. All unpaid real and tangible personal property taxes become delinquent on April 1 of the year following the year in which the taxes are levied. The delinquent real property taxes bear interest at the rate of 18% per year from April 1 until a certificate is sold at auction, from which time the interest rate shall be as bid by the buyer of the certificate. Delinquent tangible personal prope taxes also bear interest at a rate of 18% per year from April 1 Lint pai - Delinquent personal property taxes must be advertised with[ forty-five days after delinquency, and after May 1 the property is sub' ct to levy, seizure and sale. State w provides that tax liens are superior to all other liens, except prior Uni d States Internal Revenue Service liens. The Tax Collector advertise week for four (4) consecutive weeks and sells tax certifica es on or before Ju Tax certificates not sold at au on �ecome the property of the cou CITY OF TAMARAC, FLORIDA PROPERTY TAX RATES ALL OVERLAPPING GOVERNMENTS South North Fiscal City County B. oward Florida Browrard Year Tax Operating Operating County Water Man. Hospital Total Ended Roll Mlllage* Mlllage Schools District District Millam 1976 1975 3.5352 4.0317 8.6710 0.3750 1.0650 17.6779 1977 1976 3.5596 3.9802 8.8370 0.3650 1.3560 18.0978 .1978 1977 4.6177 4.4010 8.7370 0.3970 1.3560 19.5087 1979 1978 6.0155 4.5495 8.7370 0.3970 1.3462 20.6879 1980 1979 5.6903 4.7999 7.4500 0.4220 1.7346 20.0968 1981 1980 6.4803 6.2687 8.0540 0.4020 1.7601 22.9651 1982 1981 4.7808 5.8988 7.8530 0.3580 1.5567 20.4473 1983 1982 3.7600 5.1024 6.6526 0.3840 1.8995 17.1145 1984 1983 2.2500 5.0514 7.4126 0.3990 1.8911 17.0041 1985 1984 2.4800 4.9000 7.6621 0.4270 1.8312 17.3003 1986 1985 2.7300 5.1340 7.5910 0.4390 1.9490 17.8430 * State law requires all counties to assess at 100% valuation, and limits millage for operating purposes to ten mills. V� - 10- CITY OF TAMARAC, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Percentage Delin- Percentage Accumu- Ratio Current of Current quent Total Ratio of lated Deiln- Fiscal Total(l) Taxes Taxes Taxes Collected Collected Delinquent quent Year Tax Levy Collected Collected Collected This Year To Levy Taxes To Lever 1976 $1,397,733 $1,307,733 100.0% $13,164 $1,320,897 101.0% $6,714 0.5 1977 1,418,656 1,418,656 100.0 4,861 1,423,517 100.3 1,853 0.1 1978 1,985,581 1,850,380 93.2 50,949 1,901,329 95.8 86,105 4.3 1979 2,620,034 2,620,034 100.0 31,326 2,651,360 101.2 54,779 2.1 1980 2,548,747 2,501,095 98.1 30,981 2,532,076 99.3 71,450 2.8 1981 (2) 3,295,975 3,051,366 92.6 -- 3,051,366 92.6 316,059 9.6 1982 3,169,034 3,078,685 97.1 80,649 3,159,334 99.7 325,759 10.3 1983 2,483,955 2,483,955 100.0 85,512 2,566,467 103.3 243,247 9.8 1984 1,838,325 1,770,970 96.3' 35,603 1,806,573 98.3 274,999 14.9 1985 2,151,705 2,025,092 94.1 22,565 2,047,657 95.2 329,152 15.3 1986 (3) 2,403,230 2,282,176 95.0 28,108 2,310,284 ( ---- In, process --- ) (1) Total levy of discount. (2), The Br and County Property Appraiser was in a dispute with the State of Florida, J a directive that all counties reassess properties to fair market values. Such dispute has been settled and appropriate adjustments have been made. *Collections are in process for the current fiscal year; amounts shown are collections for the period ended June 30, 1986. tL J CITY OF TAMARAC, FLORIDA DIRECT AND OVERLAPPING DEBT As of September 30, 1985 DIRECT DEBT (1) General Obligation Bonds Self -Supporting Indebtedness Water and Sewer Utility Revenue Bonds Less: Reserve Fund Total Direct Debt I VERLAPPING DEBT (2) (05,'000 $12,375,000 2,179,797 10,195,203 Broward County School District $ 26, 815, 000 Applicable to City 2.8% Broward County Public Improvement Bonds 235,795,000 Applicable to City 2.8% Special Obligation Capital Improvement Refunding Bonds Series B 44,440,000 Applicable to City 2.8% Gas Tax Revenue Bonds, Series A 18,015,000 Applicable to City 2.8% Local Option Gas Tax i Revenue Bonds Series A 31, 110, 000 Applicable to City 2.8 otal Overlapping Debt Total Direct and Overlapping Debt $10,500,203 $ 750,820 6,602,260 1,244,320 504,420 /1 8711080 9,972,900 $ 20,473,103 (1) Does no refle 12, 700, 000 Water and Sewer Utility Revenue Bonds Series 1986 or 6,000,009General Obligation Bonds Series 1986.. (2) All debt listed\as Overlapping Debt is secured by a tax source. i Jr < N->o/ 'Y-r' - 12 Y - Ll LI E 0 E CITY OF TAMARAC SUMMARY OF DIRECT AND OVERLAPPING DEBT As of September 30, 1985 DIRECT DEBT(1) General Obligation Bonds $ 305,000 Self -Supporting Indebtedness 10,195,203 �„ TOTAL DIRECT DEBT $10,500,203 TOTAL OVERLAPPING DEBT 9,972,900 TOTAL DIRECT AND OVERLAPPING DEBT $20,473, 103 (I)Does not roflect S12, 700, 000 Water and Sewer Utility Revenue Bonds Series 1986 o $6,000 000 .Ceneral Obligation Bonds Series 1986. FINANCIAL PARAMETERS Population (1985 estimated) 33,343 Total Assessed Valuation - Tamarac $1, 202, 857, 479 Total Taxable Valuation - Tamarac Total Assessed Valuation - Broward County $38, 230, 216, 122 Total Taxable Valuation - Broward County $31,466,709,375 Source: Broward County Property Appraiser's Office; as of September, 1985 FINANCIAL RATIOS (1) Percent Percent of Total of Taxable Per Assessed Assessed Valuation Valuation Capita Tamarac Tamarac Tamarac DIRECT DEBT General Obligation Debt 0.025$ 0.035% $ 9 Self -Supporting Debt 0.848 1.155 306 TOTAL DIRECT DEBT 0.873 1.190 315 TOTAL OVERLAPPING DEBT 0.829 1.130 299 TOTAL DIRECT AND OVERLAPPING 614 DEBT 1.702 2.320 VALUATION -- 36,075 Total Assessed Valuation -- Total Taxable Assesse,! -- -- 26, 464 Valuation (1) As of September 30, 1985. - 13 - BUDGETING, ACCOUNTING AND AUDITING The City Manager prepares and submits the annual budget and capital Improvement program to the Council and executes the budget and capital improvement program in accordance with appropriations and ordinances adopted by the Council. The City Manager generally begins the budgetary process in March by preparing a letter of transmittal with specific instructions on general budgetary policy for departments. Each department then prepares and submits its proposed budget and in April internal meetings are held to review the aggregate budget. After approval by the City Manager, the tentative budget Is submitted to the Council on or before July 1 of each year together with a message, which outlines proposed financial policies; describes important features of the budget; explains any major changes from the current year in financial policies, expenditures and revenues; summarizes the City's current and overall financial and debt position; and includes such other material as the City Manager deems desirable, and as the Council or Charter may require. The City Council then holds workshops on the budget in which the public is Invited to participate. Following these workshops, public hearings are held where again public comment is solicited and considered. The Council then adopts the budget prior to the end of September. The Council then determines the millage rate necessary to fund the budget. The General Fund receives all of the General Revenues of the City not specifically levied or collected on behalf of its various special funds. The General Fund budget is presented on a modified accrual basis for expenditures and revenues, and provides a complete financial plan of all funds and activities for the ensuing fiscal year, and contains such details and is in such form as may be required by law, and by the Council. Also, it shows comparative figures of expenditures and revenues for the current and past fiscal year detailed to show the increase and decrease in dollars. The total of estimated expenditures is not to exceed the total of estimated revenue and appropriated fund balance. The City may maintain an unappropriated surplus of no more than ten (10) percent of its total proposed expenditures of the General Fund budget. No more than five (5) percent of expenditures of the General Fund budget may be included in the budget for contingencies that may not have been included or which may have been underestimated in the proposed expenditures. This figure does not include unappropriated surplus. The City adopts formal budgets for all other funds when it deems such budgeting to be consistent with generally accepted accounting principles or when required by law. INVESTMENT MANAGEMENT Prior to investing City Fukcr, the City Finance diirector m t notify and obtain the approval of (i) thr, (ii) the investment adufi y committee created by the City, (ill) theouncil, and (iv) the Citager. The City funds may be Invested direct obligations of thted States, certificates of deposit in an amount less than $100,000 a financial Institution insured by the Federal Deposit Insurance Corporation or 14 - JFeder 1 Savings and Loan Insuran a Corporation a d C rtiflcates of Deposit an mount greater than $10 ,00Q which a ully collateralized by unencumbered direct obligations o the United S tes. OPERATING BUDGET FOR FI CAL YEAR NDE SEPT ER 30, 1985 The General Fund bud a fist year nd' ptember 30, 1985 provided total revenues of $80246, 78 an total a of $10,095,495. The budget was balanc pro ion of 475,95 revious year-end fund balance 1601 and by n transfers o 72, 760. - otal revenu sjor the General Fund wer �fir8,697,299 'which was $77, 754 more favorable than the budgeted amount; ac expenditures ww,j.o410,420,790, whi was $ 25, 295 less favorable than the budgeted amount. � NliOPERATING BUDGETFOR FIS AL R NDED SEPTEMBER 30, 1986 Total budgeted operating revenues for the General Fund - for the fiscal year ending September 30, 1986 are $10, 489, 669. Budgeted expenditures for the same period are $10,489,669. Each month of the current fiscal year, actual revenues and expenditures of the General Fund are compared with budgeted amounts by line item. Variations of actual compared to budget which are unfavorable are referred to the respective department heads for explanations and possible amendment. A summary report of the status of the budget is submitted to the City Manager for review and action. At the close of the first nine months of the current fiscal year, total revenues are 83% of the annual budget amount and total expenditures are 70% of the annual budget amount, which In each case is favorable. t�I `5 �,. m6 " f W 7 e City has a single -employer ¢� kt itsutory d-ben 1 covering all full-time employees. �1s of Octobe 1, 198 ost recent actuarial report), there 1 Ir unfund past sery City's annual contribution$ to service normal costs $185,45 p n u a e pan was U I is, $1, 504, 82 was vested, assuming a 8% interest rate. I the plan' n t assets available for benefits were 5. b f • �t z :fit I retirpfient ate kes=woe :e os 1985 itht o which _ 19 T�.k �0-k 16 1 ... 1J 0 UNDERWRITING The Underwriter has agreed, subject to certain cU.Tfhe to purchase the Bonds from the City at an aggregate discount ofom the initial public offering prices set forth on the cover page ofcial Statement plus accrued interest to the date of delivery of the Bo Underwriter is obligated to purchase all the Bonds if any are purchased. The Bonds may be offered and sold by the Underwriter to certain dealers, dealer banks and banks acting in the capacity of agents at prices lower than the initial offering prices, and the public offering prices may be changed from time to time. LEGALITY Certain legal matters incident to the authorization and issuance of the Bonds are subject to the approval of Fine Jacobson Schwartz Nash Block 6 England, Miami, Florida, Bond Counsel, whose approving opinion will be furnished to the Underwriter of the Bonds at the time of their delivery and will be printed on the Bonds. Certain legal matters will be passed on for the City by A. Bryant Applegate, Counsel to the City. Certain legal ratters will be passed on for the Underwriter by its counsel, Wolf, Block, Schorr and Solis -Cohen, West Palm Beach, Florida. TAX EXEMPTION In the opinion of Bond Counsel, the interest on the Bonds is, under existing statutes and judicial decisions, exempt from all present federal income taxes subject, however, to pending federal tax legislation as more fully described herein under the heading "Pending Federal Tax Legislation" and the Bonds and the income thereon are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations, as defined in said Chapter 220, Florida Statutes. PENDING FEDERAL TAX LEGISLATION On December 17, 1985, the United States House of Representatives adopted H.R. 3838 (in the form so adopted, the "Tax Bill"), which includes an extensive revision of the federal income tax laws affecting tax-exempt financing. The Tax Bill provides that it is effective with respect to state and local government obligations, such as the Bonds, issued after December 31, 1985. On March 14, 1986, the Chairman of the House Ways and Means Committee, the Chairman of the Senate Finance Committee, the Secretary of the Treasu y and the ranking minority members of said committees issued a joint state nt endorsing the postponement, until the earlier of September 1, 1986 or a date of enactment of tax reform legislation, of the application of certain provisions of the T x Bill to certain types of bonds, including the Bonds. TtZ ect�ve a the Tax Bill, making compliance with those provisions of the Tax Bill to be postponed pursuant to the joint statement unnecessary if the postponement ed in the joint statement is enacted. The City does not intend to ompl with the provisions of the Tax Bill proposed to be postponed, but does i tend to comply with the provisions of the Tax Bill which are unaffected e joint statement. Accordingly, if the Tax Bill were to be enacted in its J present form with effective date provisions conforming to the description of such provisions In the joint statement, interest on the Bonds will continue to be exempt from federal income taxation. H.R. 3838 as amended by the United States Senate Finance Committee was adopted by the SerAte on June 24, 1986 (the "Senate 1311119. The Senate Bill modifies certain provisions in the Code er ainin to a tax-exempt status of interest on state and local government obliga ions rli�i�si. Generally, these modifications would apply only to obligation issued after the date of enactment of a bill incorporating the terms of th Senate Bill and, since the City anticipates issuing the Bonds prior to the date of enactment of the proposed tax reform legislation, the modifications contained in the Senate Bill would not apply to the Bonds. In addition, the Senate Bill also includes provisions for a corporate alternative minimum tax (effective for taxable years beginning after December 31, 1986) which would treat as a preference item 50% of the excess of a corporation's pre-tax "book income" (i.e., net income as reported for financial statement purposes with certain adjustments) over its alternative minimum axabl income (determined without regard to this preference item and prior to reduction by net operating loss deduction). Tax-exempt interest, including interest on .the Bonds, would be includable in "book income" for this purpose. wj �►vt {, The differences between HR 3838 and the Senate Bill are now the subject of consideration by a joint conference committee to be composed of representatives of the Senate Committee on Finance and the Committee on Ways and MeansVof the House of Representatives. The outcome of the legislative process w There can be no assurance as to whether the Tax Bill, the Senate Bill or any similar legislation will be enacted into law or, if some variation thereof is enacted, what its provisions, including its effective date, will be. Accordingly, if the Tax Bill is enacted into law and the effective date of the provisions contained in the joint statement is not postponed as provided therein or to some other date subsequent to the issuance of the Bonds, or if different tax reform egislation is enacted in a form which does -not rovide for tax exemption wit respect to obligations such as the Bon interest on Bonds may be Object to federal income taxation retroacti to the date of Issuance. of th Bonds The Bonds do not provide for any mandatory redemption f, or increase in the interest rates on, the Bonds as a result of taxability In addition, for taxable years beginning in 1988, the Tax Bill, if it becomes law, would subject property and casualty insurance companies 'to a minimum tax determined by including (among other items) interest such as Interest on the Bonds in the relevant income computation. 0 LITIGATION There is not now pending any litigation Issuance or delivery of the Bonds or questionin the A-nds din s and thority u J restraining- or enjoining the g or aWcting the validity of nd which they are to be 14 on Y t.. t. Ow+ issued. Neither the creation, organization or existence, nor the title of the present members, of the City Council or other officers of the City to their respective offices, is being contested. ✓/ A complaint filed by the Trustee in Bankruptcy n March 4 1986 for Comark, a California Invited Partnership, alleges that on or about une 8, 1982, four Ginnie Mae Certificates with a total face value of approximately $1,760,000 were transferred to the City. The securities' maturity dates range from the years 2004 to 2010. The claim alleges that the transfers were preferential and fraudulent under the United States Bankruptcy Code. The attorney for the Trustee in Bankruptcy has represented that a demand to the City to settle for the sum of 12% of the value of the securities at the date of transfer will be forthcoming. The collective market value the securities at the date of the transfer approximates. $650 000. t -t,,, w�`11 �, Y{ I in the opinion of Counsel to, the City, TL4 Wwrait Imm The City is a party to various other lawsuits. The City is covered by Insurance for these suits and in the opinion of Counsel to the Ci none of these claims or suits have a material impact on the City The City had $7, 000, 000 of its $17, 000, 000 investm rtfolio invested with E.S.M. Government Securities Inc., ("E.S.M") ceased paying its creditors in March, 1985 and the Securities and Exch nge Commission placed E.S.M. In receivership. The City intervened in that action and filed additional suits against Alexander Grant S Co., Brandford Trust Company and Bradford Securities Processing Services, Inc. Pursuant to a settlement agreement effective on July 7, 1986, the City received approximately . $3,300,000 ih satisfaction of its claims against Alexander Grant S Co. E M. was also placed in involuntary bankruptcy by several editors. The lty had filed a claim in that bankruptcy. The City has en (ford cus mer status In a stockbroker liquidation. The City received $ ,558,104.71 in an interim distribution pursuant to a Bankruptcy Court Order of April 8, 1986. VALIDATION The Bonds were validated by a judgment rendered by the Circuit Court In and for Broward County dated July 20, 1984 and the time for taking an appeal has expired without any such appeal being taken. ACCOUNTING The historic financial statements of the City included in Appendix A to this Official Statement :7avr been examined by Touche Ross and Co., Miami, Florida, Certified Public Accountants, to the extent and for the period indicated in their report which appears in Appendix A. Such financial statements have been included therein in reliance upon the authority of such firm as experts in accounting and auditing. Ir f t� h r4.r. 8 0 lJ! OFFICIAL STATEMENT BOND RATINGS StaVrariand Poor's Corporation as 8o i s munic' al bondra gMoody's Investors Service a assign he Bonds a nd rating a ratings reflect the views the r pective rating a ncies and a ex a of the significance of such rating may be obtained a ly from tr aav furnishing thesame. There is no assurance that such rollbenued for any given period of time or that either ill not �r r d.vised downward or withdrawn entirely by the respective ratin agency In its judgment, circumstances so warrant. Any such downward revisi ns or withdrawal of either rating may have an adverse effect on the market price of the Bonds. AUTHORIZATION CONCERNING 1 This Official Statement has been authorized and adopted by the City of the Tamarac, Florida. Concurrently with the delivery of the Bonds, undersigned will furnish his certificate to the effect that, to the best of his knowledge, as of the date of delivery of the Bonds, the Official Statement does not contain any untrue statement of a material fact or omit to state a material fact which should be included herein for the purpose for which this Official Statement is to be used, or which is necessary in order to make the statements contained herein, in the light of the circumstances in which they were made, not misleading. • CITY OF TAMARAC, FLORIDA /~ h A or C�