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HomeMy WebLinkAboutCity of Tamarac Resolution R-81-075Introduced by: I/ TEMP. #1891 1 2 3 4 5 8 9 10 11 12 13 14 15 16 17 i 20 21 22 23 24 25 26 27 28 29 32 33 34 35 36 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R- A RESOLUTION AMENDING RESOLUTION NO. 79-251, ADOPTED BY THE CITY COUNCIL OF THE CITY OF TAMARAC, FLORIDA, ON OCTOBER 13, 1979, AS AMENDED, TO PROVIDE THAT THE RATE COVENANT CON- TAINED IN SECTION 502 THEREOF REQUIRE COVERAGE OF THE CURRENT FISCAL YEAR'S PRINCIPAL AND INTEREST REQUIREMENTS BY 110% RATHER THAN 125%. WHEREAS, Section 1001 of Resolution No. 79-251, as amended (the "Resolution") provides that the City Council may at any time adopt resolutions supplemental to the resolution for the purpose of curing any formal defect or omission or to correct any inconsistent provision i-n the Resolution; and WHEREAS, prior to the sale of $12,935,000 City of Tamarac, Florida Water and Sewer Utility Revenue Bonds, Series 1980, dated September 1, 1980 (the "Bonds") the City Council had determined to reduce the rate covenant coverage of debt service on said bonds from 125% to 110%; and WHEREAS, the preliminary official Statement, dated August 11, 1980 and the final Official Statement, dated August 21, 1980 relating to the Bonds as well as the bond counsel opinion printed on the Bonds all stated that such coverage was 110% and represented that the Resol tion provided coverage of 110% and such representation was also made to rating agencies, underwriters and prospective Bond purchasers; and WHEREAS., the City Council has determined that the failure to amend the Resolution prior to the sale of the Bonds to reduce the coverage as aforesaid was a formal defect or omission within the meaning of Section 1001 of the Resolution and in no way were prospec- tive Bond purchasers given any representations that such coverage would be-125% but rather were informed that such coverage would be 110%. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TAMARAC, FLORIDA: SECTION 1: The first paragraph of Section 502 of the Resolution is hereby amended to read as follows: -1- TEMP. #1891 1 "Section 502. Rate Covenant. The City further covenants that it will fix, charge and 2 collect rates and charges for the use of the services and facilities furnished by the Water 3 and Sewer Utility and that from time to time, and as often as it shall be necessary, it will 4 adjust such rates and charges by increasing or decreasing the same or any selected categories 5 of rates and charges so that the Revenues will at all times be sufficient in each Fiscal Year to provide an amount at least equal to the sum of (a) one hundred per centum (100%) of the Current Expenses of the Water and Sewer Utility for the current Fiscal Year, (b) one hundred 8 ten per centum (110%) of the Principal and In- terest Requirements for the current Fiscal Year, 9 and ( c ) one hundred per centum (10 0 % ) of the Reserve Account Deposit Requirement for the 10 current Fiscal Year." 11 SECTION 2: In accordance with Section 1001 of the Resolution, 12 the City Council caused to be published once a week for two consecu- 13 tive weeks in The Daily Bond Buyer, a financial journal published in 14 the Borough of Manhattan, City and State of New York at least 30 days 15 prior to the date of adoption of this resolution a notice of the pro- 16 posed adoption of this resolution in the following form: 17 "City of Tamarac, Florida Notice of Proposed Adoption of a Supplemental Resolution The City Council of the City of Tamarac, Florida proposes to correct a formal de- 20 fect or omission in Resolution No.79-251, as amended, authorizing $12,935,000 Water 21 and Sewer Utility Revenue Bonds, Series 1980 by changing the rate covenant debt 22 service coverage percentage from 125% to 110% so as to make such coverage percentage 23 consistent with the coverage percentage represented in the preliminary Official 24 Statement and final Official Statement promulgated in connection with the offering 25 and sale of said bonds. 26 Copies of such -proposed supplemental resolution are on file at the Office of 27 the City Clerk of the City of Tamarac and may be inspected by all bondholders." 28 SECTION 3: The City Clerk did prior to the first publication of 29 the notice set forth in Section 2 above cause a similar notice to be ' mailed, postage prepaid, to all registered owners of bonds and all other bondholders who shall have filed their names and addresses with j2 33 the City Clerk for such purpose. SECTION 4: This resolution becomes effective immediately upon 34 35 its passage. -2- 36 y TEMP.#1891 1 2 3 4 5 II 8 9 10 11 12 13 14 15 16 17 20 21 22 23 24 25 26 27 28 29 .s2 33 34 35 36 PASSED, APPROVED and ADOPTED this ,2 ay of ,1981 ATTEST: AS-SISTANT—CITY CLERK I HEREBY CERTIFY that I have approved the form and correctness of this RESOLUTION. RECORD OF COUNCIL VOTE MAYOR; � 6N DISTRICT CITY ATTORNEY DISTRICT DISTRICT DISTRICT Mic