HomeMy WebLinkAboutO-25-M
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MISCELLANEOUS ORDINANCES
ORDINANCE NO. 25-M
ØRDIKl'....NCE PR8VIDING FOR f}.'HE ACQUISITION
p.ND CONSTRUCTIO", OF A NS!'! SEHER SYSTEH
FOR THE CIT-, OF CLEffi.l0NT, FLORIDA; PRO-
VIDING FOR THE ISSUÞ_~'JÇE OF No'r EXCEEDING
$1,400,000 \'I.".TER A~iD' SE\'lER REVE",UE BONDS
~OI··~W"súë·Êc;i'r1'Y TO P;',:l THE COST OF SUCH
PROJECT; PROVIDING F'JR 'TEE RIGHTS OF. TIE:
HOLDERS OF SUCE BONDS; PROVIDING FOR TEE
PAYMENT THEREOF; AND MA~ING CERTAIN
OTHER COVENANTS AND AGREE~æNTS IN CONNEC-
TION ¡'lITH THE ISSUANCE OF SUCH BONDS.
THE CITY OF CLER40NT HEREBY ORDAINS:
SECTION 1. AUTHORITY OF THIS ORDINANCE. Thi s
ordinance is enacted pursuant tö Chapter 67-1217, Laws of
Florida, Acts of 1967, âs amended and supplemented, and
other applicable provisions of law.
SECTION 2. DEFINITIONS. The following terms
shall have the following weanings herein, unless the text
othe~~ise expressly requires:
A. "Issuer" shall mean' the City of Clermont,
Florida.
B. "Act" shall wean Chapter 67-1217, Laws of
Florida, Acts of 1967, as amended and supplementeà.
C. "Obligations" shall mean the Water and Sewer
Revenue Bonds herein authorized to be issued, together with
any additonal parity obligations hereafter issued under the
terms, conditions and limitations contained herein.
D. "Holder of obligations" or "obligation holders"
or az?-y'similar term. shall wean any pe=son \.¡ho shall be 'the
bearer or owner of any outstanding obligation or obligations
registered to bearer, or the registered owner of any such obliga-
tion or obligations which shall at the time be registered o~her
than to bearer.
E~ "Additional parity obligations" shall mean addi-
tional obligations issued ~!1 compliance with the terms, con-
ditions and limitations (;ontained in subsection I'lof Section 16 herecf,
which have an equal lien on the revenues and excise taxes, as
her,':Ìn defined. and rank equally in all :::-espects with such
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obligations initially issued hereunder.
F. "System" shall mean the comple~e water distri-
bution facilities now owned, operated and maintained by the
issuer and the new sewerage collection facilities to be
financed in part by the proceeds of the obligations herein
authorized, together with any and all improvements, extensions
and additions thereto hereafter constructed or acquired, all
to be operated by the issuer as a single combine utility.
G. "Gross revenues" or "revenues" shall mean all
income or earnings, includ~ngany income,from the investment
of funds as herein provided, derived by the ~ssuer from the
oper~tion of the system.
H. "Cost of operation and maintenance", of the
system shall mean the current expenses, paid or accrued, of
operation, maintenance and repair of the system, as calculated
in accordance with sound accounting practice, but shall not
include, any reserves or renewals and replacements, extra-
ordinary repairs or any allowance, for depreciation.
I. ",Net revenues" of the system shall mean the
revenues or gross revenues" ,as defined' in, subsection ',G above,
after deduction of the cost of operation and maintenance, as
defined in subsection H. above.,
J. "Utilities services taxes" shall mean such
tax as levied and collected by the issuer, pursuant to a non-
emergency ordinance, enacteà on "_~Qþ~~:z;.,,,-4-,~~_9_;:¡2, on
every purchase of electricity, gas (natural, liquefied pet-
roleum gas or manufactured), water service and local telegraph
and telephone service within the co:::porate limits of the issuer
under the authority of Section 167.431, Florida Statutes.
~ ...K.
"Cigarette tax" shall mean the pledgeable
porticn of the proceeds de¡rived by, the issuer" pursuant to
an ordinance enacted on _..O,<::toper 18, 1949. as amended
,and revised, imposing a tax upon each and every sale, receipt,
put'chase, possession, consumption, handling, distribution and
use of cigarettes wi thin the. corporate limits of' the issuer
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under the authority of Chapter 210, Florida Statutes.
L. "Franchise taxes" shall mean any and all moneys
recei ved by the issuer from the_!1.9..;:se:..J\P.E,!?k~ t~~al Ga~
District, its legal representatives, successors or assigns
under the franchise granteà pursuant to ordinance duly enacted
on November 16, ~95~, and any and all moneys received by the
issuer from the Lake Apopka Natural Gas District, its legal
representatives, successors or assigns, under any extension or
renewal of said franchise or from any new franchise granting
the right to supply natural gas to the issuer or its inhabi-
tants, and received by,the issuer from the Florida POIver Corpora-
tion, its legal representatives, successors and assigns under
'ì~""""""-_a ~ ~-~ .u__ _. ._ _a
the franchise granted pursuant to ordinance duly enacted on
~R~y-l, 1952, apd any ~nd a+'~~~~~ceived by the issuer
.from the Florida Power Corporation, its legal representatives¿
successors or assigns, under any extension or renewal of said
":.~. . .__. _ _ ~__M_'~~'
!E2~~hise or from an~.~~v ~r.anchise 9ranti~g the right to supply
electric power to the issuer or its inhabitants.
M. "Excise taxes" shall mean collectively: the
utilities services taxes, the cigarette tax, and 'the franchis.e
taxes.
N. "Consulting engineers"shall mean such qualifie~
and recogni:zed consulting engineers, having a nationwide and
favorable repute for skill and experience in the construction
_~nd operation of such facilities as the svstem, at the time
retained by the issuer to perform the acts and carry out the
duties as herein provided for such consulting engineers.
,0. "Fiscal year" shall mean the period commencing
on November 1 of each year ,and ending on the succeeding October
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3l.
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P. ¡vords importing singular number shall include the
plural number in each case and vice versa, and \~ords importing
persons shall include firms and corporations.
SECj~ION 3. FINDINGS.
It is hereby ascertained~
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determined and declared that:
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A. ,The issuer now ow~s, ope~ates and,maintains
a municipal water distribution system and derives revenues
from rates, fees, rentals and other charges made and collected
for the services and facilities thereof.
B. Pursuant to Section 167.431, Florida Statutes,
the issuer did, on October 10, 1957, enact non-emergency,
Ordinance No. 156 levying and imposing the utilities services
taxes.
C. Pursuant to Chapter 210, Florida Statutes, the
issuer did under date of 0 v T /9f , 19!iJ, enact Ordinance ,
No. OJ ~ levying the cigarette tax ¡J5 t9 w{"",{;/t"d J,r è;-1/¡XlY1;Vc.r
\ () tV 19 C C¡. J ,
D. Pursuant to law, the issuer on Julv 1, 1952,
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under authority of an ordinance dulyenacteà, entered ,into
an agreement with the Florida Power Corporation for a perioà
of thirty (30) years whereby the issuer would receive a
franchise,tax by reason of having granted to Florida Power
.Corporation the right to supply electric power services to '
the issuer and its inhabitants; and the issuer on November 16,
1954, under authority of an ordinance duly enacted~' entered into
an agreement with the Lake Apopka Natural Gas District for a
period of thirt3 (30) years whereby the issuer would receive
a franchise tax by reason of havin,:, granted to _Lake Apopka
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Natural Gas District the right to sup~ly natural gas service
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to t:he issuer and its inhabitants.
E. It is necessary anà desirable to acquire and
construct new sewerage c~llection facilities within the cor-
porate territory of the issuer, including force mains, pumping
stations, interceptor lines, treatment facilities and appur-
tenant facilities, as provided herein (hereinafter called,
"project"), to be operated by the issuer in combination with
its existing water distri~ution ~acilttiesas a single utility,
in order to preserve and protect the public health, safety
and welfare of the inhabitants of the issuer.
F. (1) The net revenues derived from the operation
of the system are, not now pledged,or encumbered in any manner.
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(2) The proceeds from the excise taxes are not
now pledged or encumbered in any manner.
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G. The gross revenues, as herein defined, to be
derived from the operation of the system are estimated to
average $201,832 annually in the years t~70 to~2000, in-
clusive; the cost of operation and maintenance, as herein
defined, of the system is estimated to average $80,479 annually
in the years ~ to ÆD~~, inclusive; and the net revenues,
as herein defined, to be derived from the operation of the
System are estimated to average $121,353 annually in the
from the excise taxes
The proceeds to be derived
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are estimated to average $4 !O!,600 ~
years 1970 to 2000, inclusive.
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annually in the years 1970 to 2000, inclusive. The estimated
net revenues to be derived from, the operation of the system
and the proceeds of the excise
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taxes will be sufficient to pay all of the principal of and
interest on the obligations to be issued hereunder, as the same
become due, and to make, all required sinking fund, reserve or
other payments.
H. The principal of and interest on the obligations
and all required sinking fund, reserve and other payments shall
be payable solely from the net revenues derived ,from the oper-
ation of the system and from ~heproceeds of, the excise taxes,
as herein provided. The issuer shall never be required to levy
ad valorem taxes on any property therein to pay the principal of
and interest on the obligations or to make any of the required
sinking fund, reserve or other pavmcnts and such obligations
shall n0t constitute a lien upon any property of orin the
issuer.
SECTION 4. AUTHORIZATION OF CONSTRUCTION AND,
ACQUISITION OF PROJECT. There is hereby authorized the construc-
tion and ,acquisition of the project pursuant to ~he plans and
specifications of the consulting engineers, presently on file
with the issuer. The cost of such project, ,in addition to the
items set forth in the plans and specifications, may include, but
need not be limited to" the acquisition of any lands or interest
therein or any other properties deemed necessary or convenient
therefor; engineering, legal, and financing expenses; expenses
for estimates of costs and of revenues; expenses ,for plans,
specifications and surveys; the fees of fiscal agents, finan-
cial advi~ors or consultants; a&~inistrative expenses relating
sOlely to t!:<e construction and acquisition of the project; interest
upon the obligations herein authorized during the period of
construction of the project; the creation and establishment of
reasonable reserves for debt services; and such other costs and
e~:p.2nses as may be necessary orincidentëll to. the financing here-
'in authorized ,3.nd. the construction and acquisition of the project
and the placing of same in operation.
SECTIO~ 5. ORDINANCE TO CONSTITUTE CONTRACT. In
consideration of 'the acceptance of the obligations authorized
to be issued hereunder by those who shall hôld the same from time
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to time, this ordinance shall be deemed to be and shall
constitute a contract between the issuer and such holders. The
covenants and agreements herein set forth to be performed by the
issuer shall be for the equal benefit, protection and security
of the legal holders of any and all of such obligations ,and
the coupons attached thereto, all of which shall be of equal
rank and without preference, priority or àistinction of any
of the obligations or coupons over any other thereof, except
as expressly provided therein and herein.
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¡SECTION 6. AUTHORIZATION OF OBLIGATIONS. Subject
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and pursuant to the provisions hereof, obligations of the
issuer to bJ known as "Water and Se\oler Revenue Bònds," herein
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sometimes rkferred to as the "obligations" are authorized
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to be issued in ,the aggregate principal amount of not exceeding
One Nillion Four Hundreà ,Thousand Dolla:r:s ($1,400,000) .
SECTION 7. DESCRIPTION OF OHLIGATIuNS. The obliga-
tions shall be dated
November
1,1969 ¡' ,", snaIl· be numbered
consecutively fron one upward¡ ,shall' be in the denomination of,
$5,000
each; shall bear interest at such rate or
rates not exceeding the maximum rate fixed by the Act or by
other applicable law, such interest to, be payable semi-annually
May
, 1 and
November
1 of each year¡ and
shall mature serially in numerical,. order, lowest numbers first,
on
November
1 in the 'years and amounts as follows:
í YEAR, AMOUNT YEAR AMOUNT
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1975 $ 5,000 1988 $ 50,000
1976 10,000 1989 55,000
1977 15,000 1990 60,000
1978 20,000 1991 65,000
1979 20,000 1992 " 70,000
1980 25,000 1993 75,000
1981 30,000 1994 80,000
1982 30,000 1995 ,85,000
1983 35,000 1996' 90,000
1984 35,000 1997 95,000
198'5 40,000 1998 100,000
1989, ' 45,000 1999 105",000
1987 45,000 2000 115,000
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Such obligations shall be is.sued in coupon form;
shall be payable with respect to both principal and interest
in lawful money of the United States of America at a bank or
banks to be subsequently determined by the issuer prior to the
delivery of the obligations; and shall bear interest from the~r
date, payable in accordance with and upon s~rrender of the
appurtenant interest coupons as they severally mature.
SECTION 8. EXECUTION OF OBLIGATIONS AND COUPONS.
The obligations shall be executed in the name of the issuer by
its Nayor and countersigned and attested by its City Clerk, and
its corporate seal or a facsimile thereof shall be affixed there-
to or reproduced thereon. The facsimile signatures of the
Mayor or the City Clerk may be imprinted or reproduced on the
obligations, provided that at least one signature required to be
placed thereon shall be manually subscribed. In case any officer
whose signature shall appear on any obligations shall cease to
be such officer before the delivery of such obligations. such
signature or facsimile shall nevertheless be valid and sufficient
for all purposes the same as if he had remained in office until
such delivery. Any obligation maybe signed and sealed on
behalf of the issuer ,by such person 1'1ho at the, actual time of
the execution of such obligations shall hold the proper office
\'lith the issuer, although at the date of such obligations such
person may not have held such office or may not'have been so
authorized.
The coupo~s attached to the obligations shall be
authenticated with the facsimile signatures of any present
or future Mayor and City Clerk of the issuer, and the valida-
tion certificate on the obligations shall be executed with
the facsimile sig~'1ature of the Mayor . The issuer may adopt
and use for such pµrpOSE!S the f,acsimile signatures of any
persons who shall have been such Mayor and city Clerk at any
tirr,e on or afi:er the date of the obligations notwithstanàing
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that they may have ccased to be such officers at the time
such obligations shall be actually delivered.
SEC'l'ION 9. NEGO'rrABILITY AND REGISTRATION. The
obligations issued hereunder shall be, and shall have all of
the qualities and incidents of,negotiable instruments under
the law merchant and the Laws of thc State of Florida, and each
successive holder, in accepting any of such obligations or the
coupons appertaining thereto, shall be conclusively deemed to
have agreed that such obligations shall be and have all of the
qualities and incidents of negotiable instrlli~ents under the
law merchant and the Laws of the State of Florida.
The obligations may be registered at the option of
the holder as to principal only at the office of the City Clerk,
as Registrar, or such other Registrar as may be hereafter duly
appointed, such registration to be noted on the back of ,the obli-
gations in the space provided therefor. ,After such registration
as to principal only, no transfer of the obligations shall be
valid unless made at such office by written assignment of the
registered owner,or by his duly authorized attorney in a form
satisfactory to the Registrar, and similarly noted ,on the obli-
gations, but the obligations may be discharged from registration
by being in like manner transferred to bearer and thereupon
transferability by delivery shall be restored. At the option of
the holder, the obligations may thereafter again from ,time to
time be registered or transferred to bearer as before. Such
registration as to principal only shall not affect the nego~
tiabili ty of the coupons which shall continue to 'pa,ss by deli very.
SECTION 10. OBLIGATIONS, NUTILATED, DESTROYED,
STOLEN OR LOST. In case any obligation shall become mutilated,
or be destroyed, stolen or lost, the issuer may in its discretion
issue and deliver a nevi obI:Lgation with all unmatured coupons
attached, if àny, of like tenor as the obligation and attached
coupons, if any, so mutilated, destroyed, ,stolen or lost, in
exchange and. substitution for such mutilated obligation, upon
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surrender and cancellation of such ,mutilated obliaation and
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attached coupons, if any, or in lieu of anà substitution for
the obligation and attached coupons, if any, destroyed, stolen
or lost, and upon the holder furnishing the issuer proof of his
ownership thereof and satisfactory indemnity and complying with
such other reasonable regulations and conditions as the issuer
may prescribe and paying such expenses as the issuer may incur.
All obligations and coupons so surrendered shall be cancelled by
the
City Clerk
of the issuer. If any such obligations or
coupons shall have matured or be about to mature, instead of
issuing a substitute obligation or coupon, the issuer may pay
the same, upon being indemnifieà as aforesaid, and if such obli-
gat ion or coupon be lost, stolen or destroyed, without surrender
thereof.
Any such duplicate obligations and coupons issued
pursuant to this section shall constitute original, additional
contractual obligations on the part of the issuer whether or
not the lost, stolen or destroyed obligations or coupons be
at any time found by anyone, and such duplicate ,obligations and
coupons shall be entitled to equal arid proportionate benefits
and rights as to lien on and source and security for payment
from the funds, as hereinafter pledged, to the same extent as
all other cbligations and coupons issued hereunder.
SECTION 11. PROVISIONS FOR REDEMPTION. All or a
portion of the obligations of this issue may be redeemable prior
to their respective stated dates of maturity, 'under such con-
ditions and in such manner as the City Council of the issuer
may by resolution provide prior to delivcryof the obligations
to the purchasers thereof.
SECTION 12. FORM OF OBLIGATIONS AND COUPONS. The
obligations, the interest,eoupons to be attached thereto, and
the certificate of validation shall be in sUbstantially the
following forrr., with such omissions, insertions and variations
as may be necessary and desirable and authorized or permitted
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by this ordinance or i~ any sùbsequent ordinance adopted
prior to the issuance thcreof:
No.
$ 5,000
UNI1'ED STATES OF AMERICA
STATE OF FLORIDA
COUNT-¡ OF LAKE
CITY OF CLER)'!ONT
WATER AND SEvŒR REVENUE BOND
KNO\'l ALL MEN BY THESE PRESEè'lTS that the Ci ty of
Clermont, Florida (hereinaftcr called the "City"), for value
received, hereby promises to pay to the bearer, or if this
bond 'be registered to the registereòholder as herein provided,
on the first day of
Novernbèr
19_,
from thc special
funàs hereinafter mentioned, the principal sum of
FIVE THOUSAND DOLLARS
and to pay solely from such special funds, interest ~hereon
from the date hereof at the rate of
per centum (
%), per annum until payment of the principal sum,
such interest to the maturity hereof being payable semi-annually
on the first day of
May
and the first day of
November
in each year upon the presentation and surrender
of the annexeà coupons as they severally fall due. Both principal
of and interest on this bond are payable in lawful money of the
United States of America at
,
or, at the option of the holder at
This bond is one of an authorized issue of bonds
in the aggregate principal amount of $ ;L400"OOO
of
like date, tenor and e~fect, except as to nQ~ber, interest rate
(1f all bonds do not bear the same rate of interest) and date, of
I
maturity, issued to finance the cost of the construction and
acquisition of new sewer facilities in the City to be operated
in combination with its existing water facilities as a single
,
utility (hereinafter called the "system"), under the authority
of and in full compliance with the Constitution and Statutes of
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the Statg of Floriàa, including particularly Chapter 67-1217,
,
Laws of Florida, Acts of 1967, as amended and ~upplemented,
and other applicable provisions of law, and an ordinance duly
enacted ,by the City on
, 19
(hereinafter called
'the "ordinance'''), and is subject to all the terms and condi-
tions of such ordinance.
This bond, and the coupons appertaining thereto,
are payable solely from and secured by a prior lien upon and
pledge of the net revenues to be derived by the City from
the operation of the system; the proceeds of the utilities
services taxes imposed by the City on the purchase of certain
utilities services within the corporate limits of the City,
under the authority of Section 167.431, Florida Statutes, and
pursuant to Ordinance No. 156, enacted by the City .~~~obe~
10, 1957; the proceeds of the cigarette tax collected by the
City pursuant to Ordinance No. enacteà by the City on
ifl ¡j11'¡~
, 19_, levied upon each and every 'sale, receipt"
purchase, possession, consumption, handling, distribution and
use of cigarettes ,within the'corporate limits of the City
under the- authority of Section 210.03, Florida Statutes, as
,
defined in the ordinance; and the ,proceeds of'a franchise tax
to be paid for a period of thirty (30) years from July 1,
~
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J952_L by Florida Power-f9IPoratio~ pursuant to Ordinance No.____
enacted by the City on ,July 1, 1952 a~d a franchise tax to be
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enacted by the City on November 16" 1954 (all of which
,..... ............ .. ----......".--...
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raid ~or a period of thirty (~ears from November 16, ~954,
bX:,_L~~e Apopka Natural Gas District pursuant to Ordinance
No.
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taxes, above described, are herein collectively referred to
as the "excise taxes"); in the manner provided in the ordinance.
The bonds of this issue maturing in the years 19
to 19_, both inclusive, ,are not redeemable prior to their
re~;pective stated dates of maturity. The bonds maturing in 19
,
and thereafter are redeemable prior to their respective stated
dat,es of maturity, at the option of the ' City, in whole or in
,
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pa:t·t, in inverse numerical order i if less than all, on
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1, 19 ,or on any interest payment date
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thereafter at par and accrued interest to the date of rede~ption
plus the following prcmiums, expressed in percentages of the
par value thereof, if rcdeeœed in the following years:
Notice of such redemption shall be given in'the
manner required by the ordinance.
This bond does not cons'ti tute an indebtedness of
the City \vithin the meaning of any, constitutional, státutory
or charter provision or limitation, and it is expressly agreed
by the holder of this bond and the coupons appertaining thereto
that such holder shall never have the right to require or compel
the exercise of the ad valorem taxing power of the City for the
payment of the principal of and interest on this bond or the
'making of any sinking fund, reserve or other payments provided
for in the ordinance.
It is further agreed between the city and the holder
of this bond that this bond and the obligations evidenced thereby,
shall not constitute a lien upon the system, or any part thereof,
or on any other property of or in the City, but shall constitute
a lien only on the net reVenues derived from the operation of
the system and on the e~:cise taxes, in the, manner provided in the
12
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ordinance..
In and by the ordinance, the City has covenanted and
agreéd with the holders of the bonds of this issue that it will
fix, establish, revise from time to time whenever necessary, maintain and
collect always such fees, rates, rentals and other charges for the
use of the product, services and facilities of the system which,
together with the proceeds of the excise taxes, will always pro-
duce cash revenues sufficient to pay, and out of such funds pay,
as the same shall become due, all cost of operation and maintenance
of the system, the principal of and interest on 'the bonds and on
all other obligations payable on a parity therewith, and all re-
serve and other payments provided for in such ordinance, and that
such rates, fees, rentals or other charges shall not be reduced so
'as to be insufficient to proviàe adequate revenues for such purposes;
and the City has entered into certain further covenants with the
holders of the bonds of this issue for the terms of which reference
is made to the ordinance.
The City in such ordinance has, further covenanted and
agreed with the holders of the bonds of this issue to levy and
collect the excise taxes at such rates ,. not exceeding the maxi-
mum rates permitted by law, to the extent necessary to pay, as
the s,:;¡me shall become due, the principal of and interest on bonds
of this issue, all other bonds payable on a parity therewith and
to make all reserve, sinking ,fund and other payments provided
for in the ordinance and that the ràtes of such excise taxes
shall not be reduced so as to be insufficient to provide funòs
for such purposes.
It is hereby ce::tified and recited that all acts, con-
di tions and things requir'=d to exi st, to happen and to be per..,
formed precedent to and in the issuance of this bond exist,
have 'happened and have been performed in regular and due form
and time as required by the Laws and Constitution of the State
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of Florid~ applicable thereto, and that the issuance of the
bonds of this issue does not violate any constitutional or
statutory limitations or provisions.
This bond, and the coupons appertaining thereto,
are and have all the qualities and incidents of a negotiable
instrlli~ent under the law merchant and the Laws of the State of
Florida.
This bond may be registered as to principal only
in accordance with the provisions enàorsed hereon.
IN WITNESS ýffiEREOF, the City of Clermont, Florida,
has issued this bond and has caused the' same to be signed by
its ¡. ayor and attested and countersigned by its City Clerk,
either manually or with their facsimile signatures, and the
corporate seal of said City or a facsimile thereof to be affixed,
impressed, imprinted,lithographed or reproduced hereon and the
interest coupons hereto attached to be executed with the fac-
simile signatures of such officers all as of the 1st day of
November ¡, 1969.
,
CITY OF CLEfu'10NT, FLORIDA
Mayor
(SEÞ.L)
ATTESTED AND COUNTERSIGNED:."
City Clerk
FOfu'1 OF COUPON
No.
$
On the 1st day of , 19_, the City
of Clermont, Florida, will pay to the bearer at
, or at, the option of the holder at
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, from the special
funds described in the bond to which this coupon is attached,
the amount sho\Yn hereon in lal'lful money of the United States
of America, upon presentation and surrender of this coupon,
being six months' interest then due on its Water and Sewer
Revenue Bond, dated November 1 ,1969, No.
~-~",_.......-..-...-~--
CITY OF CLE&~ONT, FLORIDA
(SEAL)
Mayor
ATTESTED AND COUNTERSIGNED:
city Clerk
(TO be inserted in coupons maturing after callable
date)
"Unless the bond to which this coupon'is attached
shall have been previously duly called for prior redemption
and payment thereof duly made. or provideù for."
VALIDATION CERTIFICATE
This bond is one of the series of bonds which were
validated and confirmed by judgment of ,the Circuit Court for
Lake County, Florida rendered,on the
day of
, '
19
Mayor
PROVISION FOR REGISTRATION
This bond may be registered 'as to principal only
in the name of the holder on the' books to be kept by the
City Clerk as Registrar, or SUCh other Registrar as may be
her,~after duly appointed, such registration being noted he.reon
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by such Registrar in the rcgistration bl.ank bel.o',¡, after which
no transfer shall be vaild unl.ess made by written assignment on
said books by the registered holder or attorney duly authorized
and similarly noted in the registration blank below, but it may
be discharged from registration by being transferred to bearer,
after which it shall be transferable by delivery, but it may be
again registered as before. Such registration shall not restrain
the negotiability of the coupons by delivery.
DATE,OF
REGISTRJI.TION
IN ¡'/HOSE NAHE
'REGISTERED
SIGNATURE OF
REGISTRAR
:
:
:
SECTION 13. OBLIGATIONS NOT DEBT OR ISSUER. Neither
the obligations nor coupons shall be or constitute general
obligations or, indebtedness of the issuer as "bonds" wi thin
the meaning of the Constitution of Florida, but shall be payable
solely from and secured by a lien upon and a pledge of the special
funds as herein provided. No holder or holders of any obligations
issued hereunder or of any coupons appertaining thereto shall
eveI~ have the, right to compel the exercise of the ad valorem tax-
ing power of the issuer or taxation in any form of any real pro-
perty therein to pay such obligations or the interest thereon or
be entitled to payment of such principal and interest from any
other funds of the issuer except from the special funds in the
manner provided herein.
SECTION 14. PLEDGE OF NET REVENUES.
The payment of, t:he princ:ipal of and interest on the obligations
,
sh¡tll be secured :Eorthwith equally anà ratably by an irrevocable
lien on the net revenues, as defined herein, derived from the
operation of the system prior and superior to all other liens or
.
.
encumbrances on such net revenues, and the issuer does hereby
irrevocably pledge such, net revenues from the system to the
payment of the principal of and ,interest on the obligations, for
the rcserves therefor and for all other required payments.
SECTION 15. 'PLEDGE OF EXCISE TAXES.
The payment of the principal of and interest on the obligations
shall be additionally secured forthwith equally and ratably by
a pledge of and a prior lien upon the proceeds received by the
issuer from the excise taxes, as hereinafter provided, and the
issuer does hereby irrevocably pledge such funds to the payment
of the principal of and interest on the obligations, for re~erves
therefor and for all other required payments.
SECTION 16. COVENANTS OF THE ISSUER. For as long
as any of the principal. of and interest on any of the obligations
shall be outstanding and unpaid or until there shall have been
set apart in the Sinking Fund, herein established, including the
Reserve Account therein, a sum sufficient to p~y when due the
entire principal of the obligations remaining unpaid, together
with interest accrued or to accrue thereon, the,issuer covenants,
with the holders of any and all' obligations as follm~s:
A. REVENUE FUND. The entire gross revenues derived
from the operation of the system shall u90nreceipt thereof be
depc'sited in the "C1ermont Water and Sewer System Revenue Fund"
(hereinafter called the' "Revenue Fund"), hereby created and
established.. Such Revenue Fund shall constitute a trust fund
for the purposes herein provided and shall be kept separate and
distinct from all other funds of the issuer and used only for
the purposes and in the manner herein provided.
B. EXCISE TAXES FUND. All of the proceeds of the
excise taxes, as defined herein" as soon as the same are collec-
ted by the issuer shall be' forthwith deposited in, the "Cle~ont
Excise Taxes Fund" (hereinafter called the "Excise Taxes Fund"),
hereby created and established. Such Excise Taxes Fund shall
constitute a trust fund fort.'1e purposes herein provided and
.
.
shall be kept separate and distinct from all other funds of
the issuer and used only for the purposes and in the manner herein
provided.
C. DISPOSITION OF REVENUES. All revenues at any
time remaining on deposit in the Revenue Fund shall be disposed
of on or before the fifteenth day of each month, commencing 'in,
the month in~ediately following the delivery of the obligations
only in the following manner and in the following order of
priority:
(I) Revenues shall first be used for deposit into a
fund to be kno,~n as the "Clermont \'later and Sewer System Operation
and Haintenance Fund" (hereinafter called the "Operation and
11aintenance Fund"), which is hereby created and established,
such sums as shall be necessary in order that the moneys on de-
posit therein shall be sufficient to pay the cost of operation
and maintenance, as hereinabove defined, through the next ensuing
month, in accordance with the annual budget, and maintain,
additionally therein an operation and maintenance reserve in
the amount of .J,,2, 000.
(2) From the ~oneys remaining in the ,Revenue Fund,
the issuer shall next deposit into a separate' fund, .¡hich is
hereby created and designated "Clerr:\ont \'later 'and Sewer Revenùe
Bonds Sinking Fund" (hereinafter called the "Sinking Fund") ,
such sums as will be sufficient to pay one-sixth (1/6),of all
interest becoming due on the obligations on the next semi-
annual interest payment date and one-twelfth (1/12) of all
principal maturing on,the obligations on the next maturity date.
All such payments, as provided above, shall include an ~"ount
sufficient to pay the fees and charges of the paying agents.
Such montþly payments shall be increased proportionately to the
extent required to pay principal and interest becoming due
during the first fiscal year, after making allm~ance for the
amounts of money, if any, which will be deposited in the Sinking
Fund out of proceeds from the sale of the ohligations.
18
.
.
(3) Moneys kemaining in the Revenue Funà shall
next be applied by the issuer to maintain a Reserve Account in
the Sinking Fund, \~hich' Reserve Account is hereby created and
'established. The issuer shall deposit in such Reserve Acco~~t
the monthly sum of not less than twenty per centu.-:¡ (20q of the
amount required by the next preceding paragraph (2) to be
deposited in thc Sinking Fund, until there shall be on deposit
in such Reserve Account a sum equal to the maximum amount of
principal and interest on all outstanding obligations be-
coming due in anyone ensuing fiscal year. No ,further pay-
ments shall be, required to be made into, such Reserve Account
as long as there shall remain on deposit therein a sum equal
to the maximum amount of principal and interest on all out-
standing obligations becoming due in any ensuing fiscal year.
Any withdrawals from the Reserve Account shall be
I
, /
subsequently restored from the first moneys available in the
Revenue Fund after all required current payments for the Opera-
tion and Maintenance Fund, Sinking Fund and Reserve Account,
including all deficiencies for prior payments, have been made
in full.
Moneys in the Reserve Account shall be used only
for the purpose of the payment of maturing principal of or
interest on the obligations when the other moneys.in the Sinking
Fund are insufficient therefor, and for no other purpose.
(4) Upon the issuance of ~~y additional parity
obligations under the terms, limitations and conditions as herein
provided, the payments into the several accounts in the Sinking
Fund shall be increased in such amounts as are necessary to
make the payments requireà above for the principal of and interest
on, and reserves for such additional parity obligations, on the
same basis as hereinabove ]J:~ovided with respect to the outstand-
ing obligations.
The issuer shall not be rcquired to make any further
payments into the Sinking Fund or into the Reserve Account in the
SÌIJking Fund when the aggregate amount of moneys in both the
01:
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ehoqpuTe~eq s~uew¿;Ed ¿;1t¡~UOtlI ~u8~~n:J eq~ X1~dtlIo~d 8){PtlI 0:+
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eq 11pt¡s pun..'! 1uewe:JB1decr PUP ~~pdeCI '~ueweho~dtlII PTES u~
s¿;euow et¡~ ~-OOÕ'OS1$]0 tlIns et¡1 pund ~UetlIe~1?1àecr pup ~~EdaC!
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-'iad-a^tf'o:¡U1pnDa 1unO\UE 'üï? 'pat¡snqp:+sa PU\? pe~\?a.I~ iqa~et¡
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et¡~ P811P~ ;Ia=+;pu~a;Iet¡) "pun.:! ~uÐwa~E1decr PUE ~~EdeC! '~uetlI
-eho~dtlII tlIe~s"s ~e^"3S pup ~e~p¡'1 ~ uouue1:)" et¡=+ SE UMOU){ eq o~
~uno~~\? 1\?T:Jeds E 01U~ 'pund enuehecr e4~ uT s"euotlI et¡~ tlIO~]
¿;1t¡~UO\lI ~Tsodep pup ¿;1ddE ~xeu 11Et¡s ~enss~ et¡~ (S}
"J)u~puE~s1no uetp suo~~EJ)~1qo t¡:Jns uo enp
e\lIo:Jeq o~ ~e1]!?e~et¡1 ~o enp U8t¡1 ~se~8~u~ ;0 ~UnO¡¡¡E et¡~ sn1d
'5U~pUE~s:tno uet¡~ suO~:t!?6~lqo ]0 1UnO\lI\? 1Ed~~uT~d e:¡!?J)e~56E et¡:t
01 TEnbe :ts12eT 112 e~12 1uno:J:J\I "'h~eseèI et¡~ pUE pun..'! 5u~){u~s
~<
~
~"
.
.
and the ma:umum J:'ec¡uire~~;£~~_.§.;~U, be held on_.£ecosit
to the credit of the Reserve Accolln t a!1d the ImEroverr,en t,
....".,...."......."_...-,._~...--._"""r.,. , . .........,--....,..',...~...,.,......_..~__. ._......,...,.,....... -..
~ey.air and. Re.r:lac:er:-.e,nj: 'F\l~?1 may be used for the purchase and
redemption of the obligations or for any lawful purpose.
(8) The Operation and Haintenance Fund,' the
Sinking Fund, the Reserve Account, the Improverrent, Repair
and Replacement Fund, the Revenue Fund, the Excise Taxes Fund
and any other special funds herein established and created
shall constitute trust funds for the purposes provided herein
for such funds. All such funds shall be continuously secured
in the same manner as state and municipal deposits are re-
quired to be secured by the Laws of , the State of Florida.
Moneys on deposit in the Sinking Fund (except the Reserve
Account therein) may be invested and re~nvested only in direct
obligations of the United States of America maturing not
later than ten (10) days prior to the date in which the
moneys therein will be needed. ,. Moneys in the Reserve Account
in the Sinking Fund and the Improvement, Repair and Re-'
placement Fund may be invested and reinvested in direct
obligations of the United States of America or in time deposits
in banks or trust companies represented by certificates of
deposits and continuously secured as above provided, maturing
not later than fiv~ (st years from the date of purchase or
must otherwise be maintained in cash. Any and all income
received by the issuer ,from such investments shall be de-
,posited into the Sinking Fund. Moneys in the Revenue Fund,
the Excise Taxes Fund, and the Operation and Maintenance
Fund shall not be' invested at any time.
D; LEVY OF EXCISE TAXES. The issuer will not repeal
the ordinances now in effect levying the excise taxes and will
r.,Q't; amend or modj~fy said ()J~din.ances in any manner so as to
impair or adversely affec't the power and obligation of the
issuer to levy and collect such excise taxes or impair or
adversely affect in any manner the pledge of such excise taxes
maje herein or the rights of the holders of the oblications.
.
.
The issuer shall be unconditionally and irrevocably obligated,
so long as any of the obligations or the interest thereon are
outstanding and unpaid, ~nd the lien upon the e~cise taxes
shall not have been released in the manner provided in subsection
G hereof, to levy and collect such excise taxes, at the maximum
rates permitted by law, to the extent necessary to pay the
principal of and interest on the obligations and to make the
other payments provided for herein. This provision shall not
be construed to prevent reasonable revisions of the rates of
such excise taxes as long as the proceeds of such excise taxes
to be collected by the issuer in each year thereafter, together
with the net revenues, will be sufficient to pay the principal
of and interet on the obligations as the same become due and
to make all Sinking Fund, Reserve Account and other payments
herein required in such year.
E. EXCISE TAXES NOT SUBJECT TO REPEAL. The,issuer
has full power to irrevocably pledge such excise taxes to the
payment of the principal of and interest on the obligations,
and the pledging of such excise tax'es in the manner' provided
herein shall not be subject to repeal, modification, or im-
pairment by any subsequent ordinance, resolution or other proceedings
. . .'
of the governing body of the issuer or by any subsequent act
of the Legislature of Florida.
The pledge of the excise taxes herein made shall be
for the benefit of any additional obligations payable on a
parity with the obligations herein authorized from the proceeds of
the excise taxes to the same extent as if such additional parity
obligations had been originally issued hereunder.
F. SUBSTITUTION OF FRA~CHISE TAX. The issuer hereby
covenants with the holders of the obligations that in the event
it shall acquire the, properties' and facilities of the Florida_
Power Corporation and/or the properties and facilities of the
~m:,""""-,,..m"'T 0._____.._ .__........_ ____.
Lake ADopka Natural Gas Dis'trict within the issuer, or
~,._r ..I~_ "0 __..__........__.__._._. _ _"', ,._..'__
, ~
...
the event
it shall acquire anà operate an electric power plant and/or natural
~ßist:;ibutic~!cilities within the issuer, and j!ll or Dart
of the franchise taxes are not available to the issuer to make the
-
22
e:;-,ents therefrom required ¡:Jursua::c co tn" pro-
.
visions hereof, the issuer will make paycent from
the net revenues first available to it frow the
operation of any such system or service so owned, acçuired,
constructed or operated by it of the ~~ounts herein required
to be paid from the franchise taxes.
G. RELEASE OF EXCISE TkXES. At such time as the
issuer may be able to obtain and ,file in the minutes of its
City Council a certificate of an independent certified public
accountant stating that for the next preceding two (2) fiscal
years the net revenues derived from the operation of the system
exceeded One Hundred Thirty-Five per cent~~, (135%) of the maxi-
mum amount of principal and interest on all outstanding obliga-
tions, to become 'due in anyone ensuing fiscal year,' then the lien
hereby' impressed upon the excise taxes shall be permanently re-
leased, and thereafter the payment of the obligations shall be
solely secured by a lien upon and pledge of the~et revenues
to be derived from the operation of the system., Anyone
, ,
, ,
of the excise taxes may be similarly released, 'so', long as thè
proceeds of the excise taxes. which shall' not be ',released and the
net revenues of the system shall have, been certified as "having
exceeded such 135 % requiremc:¡t:' Provided,' ho",:,ver, no excise
taxes may be released unless all paymenj:s required by this ord-
inance to have been made ,to the Sinking Fund, Reserve Account, and
Improvement, Repair and Replacement Fund shall have ,been made in
full, and the Reserve Account shall'have on deposit thercin the
,,'
maxim~~ amount required to be maintained therein.
.,:....
,H. OPERATION AND MAINTENANCE. The issuer will main- "
tain the system and all parts thereofin good condition anè ,..¡ill
operate the same in an efficient and economical manner making
, , ,
such expenditures for equipment and for renewals; repairs a:¡d
replacements as may be proper, for the, economical oper¡¡tiün ¿l!l(_~
','
I
i
maintenailce'thereof.
I. RA~ΠORDINANCE. The issucr ,d 11 enact a rate
t
¡
i
r
I,
I
i
ordinance and thereby ,;¡ill fix, establish, rcvise from tiIT,e to
tiwe whenver, necessary, maintain and collect alHays such fees,
rates, rentals and other charges for the use òf thc product,
23
'.
.
services
and facilities of
t.Ì1e sys tern
, ' ,
~..Tn.l.C!1 ,
together '.-li th
the proceeds of the excise taxes, will always produce cash
'revenues sufficient to pay, and out of such funds pay, as the
same shall become due, all costs of operation and maintenance
of the system, the principal of and interest on the bonds and 9n
all other obligations payable on a parity therewith, and all re-
reserve and other payments provided for in this ordinance.
Such rates, fees rentals or other charges shall not be reduced
so as to be insufficient to provide revenues for such purposes.
J. BOOKS AND RECORDS. 'The issuer shall keep, se-
parate and apart from all other books, records and accounts of
the issuer, books and records of the net revenues of the systew
and books and records of the collection of the excise taxes, arid
the holders of not less than ten per centum (10%) of the obli-
""
gations shall have the right at all r~asonable times to inspect
all records, accounts and data of the issuer relating to the
operation of the system and the collection of the excise taxes.
K. ANNUAL AUDIT. The issuer shall also,at least
once a year, within 60 days after the close of its fiscal year;
.- -.
cause the books, records and accounts relating to the system
and to the excise taxes to be properly audited by a recognized
independent firm of certified public, accountants and shall make
genE~rally available the report of such audits to any holder or
holders of obligations. Such audits shall contain a complete
report 6f'operations of the system including, but not limited to,
a comparison 'tli th the, 'Öperations in previous, years, the balance
sheet, a schedule of insurance in existence, a schedule of, the
application of all proceeds of the excise taxes, a schedule of
reserves and investments, a schedule showing the number of cus-
tomers connec'i:ed with the sys tom at the end of the fiscal year,
and a certificate by the auditors stating that no default on the
part of the issuer of any covenant herein has been disclosed by
reason of such audit. The auditors selected shall be changed at
an~{ time by a '.~ritten request signed by a majority of the holders
.
.
of the obligations or their duly authorized
L L'
reprcsen La L~ vc s.
A copy of such annual audit shall regularly be'furnished to
any holder of an obligàtion who shall have requested in writing
that a copy of such reports be furnished him.
L. NO MORTGAGE OR SALE OF THE SYSTEI,!. The issuer
will not sell, mortgage, pledge or otheDvise encumber the
system, or any part thereof, or any revenues to be derived
therefrom, and will not sell, lease or otherwise dispose of any
substantial portion of the system, except ~s hereinafter provided.
The issuer shall have and hereby reserves the right to sell,
lease or othe~vise dispose of, in the manner provided herein,
any of the property comprising a part of the system hereafter
determined to be no longer necessary, useful or profitable
in the operation thereof.
Prior to any such sale, lease or other disposition
of said property, if the amount to be, received therefor is not
in..excess of $50,000 the general manager of the system shall
make a finding in writing determining that such property com-
prising a part of the system is no longer necessary, useful or
profi table in the operation thereof.
If the amount to be received from such sale, lease
or other disposition of said property shall be in excess of
$50,000, but not in excess of"$100,000, the general manager
shall first make a finding in writing determining that such
property comprising a part of the system is no longer necessary,
useful or profitable in the operation thereof, and the governing
body of the issuer shall by resolution approve and concur in the
finding of s~ch general manager, and authorize such sale, lease
or ether disposition of said property.
If th," amouiLt to be received from such sale, lease
or other disposition of said property shall be in excess of
$100,000, but not in excess of 10% of the value of f1xed assets
of the syste~ according to the most recent a~nual audit report,
the general manager shall first make a finding in writing deter-
~
.
.
mining that such property compris:Lng a part of the system is no
longer necessary, usefu;L or profitable in the operation thereof,
and the consulting engineers shall make a finding that it is in
the best interest of the system that such property be disposed
of, and the governing body of the issuer shall by resolution
approve and concur in the findings of such general manager and
the consulting enginecrs and shall authorize such sale, lease
or other disposition of said property.
The proceeds derived from any such sale, lease or
other disposition of said property shall be placed in the
Improvement, Repair and Replacement Fund or in the Sinking Fuñd,
in such proportions to be determined by the governing body of
the issuer upon the recommendations of the general manager. Such
payment of such proceed's into the' Sinking Fund or ,the Improvement,
Repair and Replacement Fund shall not reduce the amounts re-
qui red to be paid into said Funds by other provisions herein.
No sale, lease or other disposition of the properties
, , '
of the system shall be maàe by the issuer if the proceeds to
be derived therefrom shall be in excess of 10% of the value of
the fixed assets of the syste~ according to the most recent annual
audit report and insufficient to pay all of the principal of
the obligations then outstanding and all , interest thereon to
thei.r respective dates of maturity, without the prior approval
and consent in writing of the holders or their duly authorized
representatives of sixty-six and two-thirds per centum (66 2/3%)
in amount of obligations then outstanding. The issuer sball pre- ,
pare the form of such approval and consent for execution by the
holders of obligations or by their duly authorized representative,
which form shall provide for the disposition of the proceeds of
tll~ sale, lease or other disposition of such properties of the
system.
M. INSURANCE. For so long as any of the obligations
'are outstanding, the issuer vlill carry adequate fire and wind-
,storm insuran¿'c on all buildings and structures of the works
.,~
.
.
and properties of the system which ~re subject to loss through
fire or windstorm, will carry adequate public liability in-
surance, and will otherwise carry insurance of all kinds and
in the amounts normally carried in the operation of similar
facilities and properties in Florida. Any such insùrance shall
be carried for the benefit of the holders of the obligations.
All moneys received for losses under any of silch insurance,
except public liability, are hereby pledged by the issuer as
security for the obligations, until and unless such proceeds are
used to remedy the loss or damage for which such proceeds are
received, either by repairing the property demaged or replacing
the property destroyed within ninety (90) days from the receipt
of such proceeds.
N. NO FREE SERVICE. The issuer \'Jill not render or
cause to be rendered any free services of any nature by its
system, nor will any preferential rates be established for
users of 'the same class. ,The issuer, including its departments,
agencies and instrumentalities, shall avail itself of the f~cili-
ties or services provided by the syste~, or any part thereof,
and the same rates, fees or charges applicable to' other customers
.~ .~.- "-.-.------ -
receiving like services under similar circumstances shall be
charged to the issuer and any such department, agency or in-
strumentalit~'. Such charges shall be paid as they accrue, and
the issuer shall transfer from its general funds sufficient sums
to pay such charges. The revenues so received shall be deemed
to be reve'nues derived from the operation of the system,and
shall be deposited and accounted for in the same manner as other
revenues derived from such operation of the system.
O. MANDATORY CUT OFF. Upon failure of any user
to pay for services rendered by the system within sixty (60)
days, the issuer shall shu1: off the connection of such user and
shall not furnish him or pc rmi t him to receive from the system
further service until all obligations o\"ed by him to the issuer
on account of services shall have been paid in full. This covenant
27
.
.
shall not, hOl'lever, prevent the issuer from causing the systCr.1
connection to be shut o~f sooner.
P. ENFORCEBENT OF COLLECTIONS. The issuer will
diligently enforce and collect the rates, fees and other charges
for the services and facilities of the syster.1 and the excise
-,
taxes herein pledged; will take all steps, actions and proceed-
ings for the enforcement and collection of such rates, charges,
fees and excise taxes as shall become delinquent to the full
extent permitted or authorized by law; and will maintain accurate
records with respect thereof. 'All such fees, rates, charges,
revenues and excise taxes herein pledged shall, as collected"
be'held in trust to be applied as herein provided and not other-
wise.
Q. REMEDIES. Any holder of obligations or any
coupons appertaining thereto, issued under the provisions hereof
or any trustee acting for the holders of such obligations may
either at law orin equity, by suit, action, mandamus or other
proceedings in any court of competent jurisdiction, protect and
enforce any and all rights, inclduing the right to the. appoint-
ment of a receiver, existing under the Laws of the State of
Florida, or granted and contained herein, and may enforce and
compel the performance of all duties required herein or by any
applicable statutes to be performed by the issuer or by any
officer thereof, including the collection of excise taxes.
Nothing herein,howevcr, shall be constructed to
grant to any holder of such obligations any lien on any real
property of the issuer.
¡,
I
R. OPERATING BUDGET. The issuer shall annually at
least forty-five (45) days preceding each of its fiscal years,
prepare and adopt. a detailed budget of the estimated expend i-
tures for operation and maintenance of the system during such
next succeeding fiscal year. No expenditures for the operation
and maintenance of the system shall be made in any fiscal year
in ,=xcess of ten per centum (10%) of the amounts provided there-
'.
.
for in such budget \~i thout a \-l1:i 1:ten finding and recommendation
by the general manager of such system or other àuly authorized
officer in charge thereof, which finding anà recomwendation shall
state in detail the purpose of and necessity for such increased
expenditures, or until the governing body of the issuer shall
have approved such finding and recommendation by a resolution
duly adopted, and there shall have been obtained and filed in
the minutes of the governing body of the issuer a certification
of the consulting engineers that such increased expcnditures
are necessary and essential to the continuance in operation of
the system. The issuer shall mail copies of such annual budgets
and all resolutions authorizing increased expenditures for opera-
tion and maintenance to any holder or holders of obligations who
shall file his address ~ith the issuer and request in writing
that copies of all such budgets and resolutions be furnished
him and shall make available such budgets ,and all resolutions
authorizing increased expenditures for operation and maintenance
of the system at all reasonable times to any holder or holders
of obligations or to anyone acting for and on behalf of. such
holder or holders.
,.,..., __.. n______"_'
S. CONNECTION \lITH SE\'iER SYSTEn. The issuer 'Ñill,
to the full extent permitted by law, require all lands, build-
ings and structures within the boundaries of the issuer which
can use the sewage collection facilities of the system, to
connect with and use such sewage collection facilities, and
to cease all other means and methods for the collection, puri-
fication, treatment and disposal of sewage and waste matter.
T. CONSULTING ENGINEER. The issuer will annually
retain an independent consulting engineer or engineering firm
having'a favorable reputation for skill and experience for the
design, construction and operation of systemsof comparable size
, '
and character as the syster:¡, for the purpose of providing the
issuer competent engineering counsel affecting the economical
and efficient operation of the system and in connection witn
the making of capital improvements and renewals and replacements
29
.
.
to the system. The issuer may, hOl'lever, employ"additional
engineers at any time with relation to speciflc engineering and
operation problems arising in connection with the system.
The issuer shall annually cause to be prepared by the
consulting engineers a report or survey of the system, with
respect to the management of the properties thereof, the
sufficiency of the rates, and charges for services, the proper
maintenance of the properties of the system and the necessity
for capital improvements and recorrunendations therefor. Such a
report or survey shall also shOl~ any failure of the issuer to
perform or comply with the covenants herein contained.
If any such report or survey of, the consulting
engineers shall set forth that the provisions hereof or any
reasonable recorrunenda tions of SUC:1' consul ting engineers have
not been complied with, the issuer shall i~~ediately take such
reasonable steps as are necessary to comply with such requirements
and recomrnenda tions. In making sUCh report or survey the con-
sulting engineers shall accept certified statements of the in-
dependent certified public accountants. Copies of each report
or survey shall be placed on file with the Clerk and shall be
open to the inspection of any holder of obligations or other
interested parties.
U. NO COXPETING SYSTEM. To the full extent per-
mitted by law, the issuer wlIl not grant, or cause, consent to,
or allow the granting of, any franchis~ or permit to any person
firm, corporation or body, or agency or instr~~entality whatso-
ever, for the furnishing of water or sewer services to or within
the boundaries of the issuer.
v. ISSUk~CE OF OTHER OBLIGATION~. The issuer will
not issue any ot:hßr obligations, except under the conditions
and in the manner provided herein, payablefxom the revenues
of the system or from the excise taxes, nor voluntarily create
or cause to be created any debt, lien, pledge, assignment, en-
cumbrance or "theJ: charge having priority to ,or being on a
30
'.
.
parity with the lien upon said revenues or excise taxes in
favor of the obligations issued pursuant to this ordinance
and the interest thereon. Any obligations issu~d by the issuer,
other than the obligations herein authorized or additional parity
obligations provided for in subsection W below, payable from
such revenues and excise taxes, shall contain an express state-
ment that such obligations are junior and subordinate in all
respects to the obligations herein authorized, as to lien on
and source and security for payment from such revenues and
such excise taxes.
W. ISSUANCE OF ADDITIONAL PARITY OBLIGATIONS. The
-
issuer covenants and agrees that in the event the cost of
construction or completion of the ~roject shall exceed the
dollar amount of obligations herein authorized, it will deposit
into the Construction Fund
from any funds of the issuer
legally available to it for such purpose the amount of such
excess. The issuer may provide such excess, and only such excess,
through the issuance of additional obligations payable on a
-
parity with the obligations herein authorized from the net
revenues of the system and the proceeds of the excise taxes.
Except for the issuance of parity obligations to provide funds
for any sucþ excess, no additional parity obligations payable on
a parity from the net revenues ,of the system and from the pro-
ceeds of the excise taxes with the obligations herein authorized
shall be issued after the issuance of any obligations herein
authorized, except upon the conditions and in the manner herein-
after provided:
(1) There shall have been obtained and filed in the
minutes of the governing body of the issuer a certificate of
an independent certified public accountant of suitable experience
and responsibility stating: (a) that the books and records of the
issuer relating to the collection 'and receipt of the revenues
derived from the operation of the system and of the proceeds of
the excise taxes have been audited by him; (b) the amount of
the ::'let revenues and the proceeds of the excise taxes, as defined
.
.
herein, received by the issuer for the two fiscal years immed-
iately preceding the date of àelivery of such a?ditional parity
obligations with respect to which such certificate is made; and
(c) that the average annual net revenues and proceeds of the
excise taxes for such preceding years will together equal at
least 1.40 times the maximum annual principal and interest re-
quirements on (i) all obligatio'ns and all additional parity
obligations, if any, then outstanding and (ii) the additional
parity obligations with respect to which such certificate is
made.
(2) If desirable, the net revenues for such two
preceqing fiscal years maybe adjusted as follows: (a) to'
reflect for the tvlO preceding fiscal years changes made in
the rates, fees, rentals or other charges from the operation of
the system during such two preceding fiscal years; (b) to
reflect any change in such net revenues caused by any new pro-
jects of the system having been placed into use and operation
subsequent to the date of ,commencement of such two preceding
fiscal years and not less than six months prior to the date
of such certificate provided for in paragraph (1) above; and
(c) to include for each such fiscal year the averaqe annual
estimated net revenues to be derived from the first two full
fiscal years' operation of the project to be acquired or
constructed out of the proceeds of ' such additional parity
obligations. ~' ~ 0..) keAe.,
(3) Each ordinance authorizing the issuance of
additional parity obligations will recite that all of the
covenants herein contained will be applicable to such additional
parity obligations.
(4) The issuer shall not be in default in per-
forming' any of the covenamt;s and obligations assumed hereunder,
and all payments herein required to have been made into the
accouIlts and funds, as provided hereunder" shall have been
made to the full exten't required.
(5) The additional parity obligations shall be
I.
.
dated ¡~)'_l or Y?:"'~!)':F. 1 of the year of issuance thereof,
shall bear interest payable semi-annually on May 1 and
November 1 of each year, and shall mature on JLoY.?.!I\beL 1 of
the year of maturity thereof.
X. COMPLETION OF PROJECT. The issuer will complete
the project in an economical and efficient manner and with all
practicable dispatch. Thereafter, the issuer will maintain the
- ~
. .
system in good condition and continuously ope~ate the same in
.an efficient manner anà at a reasonable cost.
SECTIO~¡ 17. APPLICATION OF PROCEEDS, OF OBLIGATIONS.
All moneys received from thc sale of the obligations shall be
,
depositeà by the issuer. in a special account in a bank or trust
company and applied by the issucr as follows:
A. All accrued interest plus a sum equal to the
interest which will accrue on the obligations 'for a perioà of
two years while the project shall be 'under construction shall
be deposited in the Sinking Fund.
B. The issuer shall next use the moneys in said
special account to pay all engineering ,'fees, legal fees, fees of
financial advisors, cost of the issuance of the obligations, and
¿II other siwilar costs incurred in: connection with the acquisition
and construction of the project and the issuance of the obliga-
tions to finance the cost thereof.
c. A special fund is hereby created, established and
. '
, .
. ,
designated as the "Clermont \'later and Sewer System Construction
Fund" (herein called the "Construction Fund").' There shall be
, '
paid into the Construction Fund'the, balance of the, moneys re-
maining after making all the deposits and paymen~ provided for
---
in paragraphs A and B, 'above.
-'.-..
,,',. ,."
Such fund shall be kept separate and apart from all
other accounts of the issuer, 'and the moneys on deposit therein
shall be withdrawn, used and applied by the issuer sole,lyto
, ,
. "
, ,
the payment of the cost :of the project and purposes incidental
thereto, as hereinabove described and set£orth. If for, any
reason such proceeds or any part thereof'arei1ot necessary for
or are not applied to the payment of such cost, then the un-
applied proceeds shall be deposited by the issuer in the Heserve
Account in the Sinking ,Fund, ',All such proceeds shall be and
constitute trùst funds for, such purposes, 'and there is hereby
created a lien upon such moneys until so applied in favor of
,the holders of the obligations.
An:{ funds on ctepositin the Construction Fund \"hicll,
"
33
:.
.
-in the opinion of the issuer, acting upon the recommendation
of the consulting engineers, are not immediate~y neccssary tor
'expenditure, as hereinabove proviaed, may be invested 'in'dire~t
~obligations of the United States of Amcrica maturing in a period
of
360
days or les~. All such securities shall be hel~ by
f the depository bank, and all income derived thercfrom shall be
-deposited in the Sinking Fund.
---- .. ----.-_...
-. -- - - - - ..
~ Immediately prior to the delivery Of the obligations'
" to the purchasers thereof, the~ssuèr' shall cnter into a written
. . - - .~ .
agreement with the depository bank for the Construction Fund,
which agreement shall prOvide,'that' all expenditures or disbursc-,
ments from the Construction Fund shall be made after such expen-
ditures,or disbursements shall have been approved in writing by
'the consulting engineers. The date of 'completion of the project
shall be determined by the: consulting engineers, \~ho will certify','
such facts i; wri ting: to:' the '~ovérning'bodÿ"'c;f'thefssUer > '.
_u__.__ë~ ~ ~ ;~. ~: ~ ~ "~)EëTioi~' is ~- ~ MODÌFÏàTÌori _bRA.\IENri~!Êi.."i'. "Ño materiiil
q,- mö¡ÜÜcation' or' ~endment: 01:- ti:lis::or~Úiàncéor i;f-ãi1yre~~lütion
.u__
, ,
õr' orèfinance' ~endåtorŸ her~of"or-suppiémêritã.íheretó- rhaý be'
ñ\âdë:"'w i thbut- ,the :coñse nt±n'wTiting~'o f·:thenöTãérS:-ÖCt:\.iõ~thi ids'
or iÍlbre~in' the- principai' ämountof theobligati~ns· thenoutstand-
, '
(" _. _._ :..., " _..' - . ,_ '_. _ ._ _ . ... .. _ . _ ". _ ,.' _ ..., 'U =. '.. ,. . ..'
ing; provided,·' however; "that no 'modification or 'amendment 'shall
pë'rmit: ã.~ change in the: maturity' 6f' sùch·6bligations ~òr-á:redùction
. .~. -. ..-.-- - " '. . .
-"~Ül~the: rate: of interest" thereòñ,- o¡;,in- the': amouriFórthè : principal
Ðbliçatlon thereof ôr'affecting;thepromise~òf~theissuer~to 'pay
1:hè:'principal' òf, and interest on:' the' obligátions as:' the -same shall
~oiì\è'duèfrom therevenues,of'the'systernand from the proceeds
of the excise táxes or' reduc,e 'the percentage, of the holders of
the: obligations' required to consent to any material modification
I,
or ù-'11endment hereof without the ,consent 0;' the holder ,or holders
of all such obligations.
~=~~~~: , :~SECTION 19~' SEVERABILITY OF I~WALID PROVISIONS~ If
anyone or more öf the covenants, agreements or provisions herein
contained shall be held contrary to any
express:provisioli
, I
of la,.,
-
.
.
or contrary to the policy of express la\~. though not expressly
prohibited, or against public policy, or shall for any reason
whatsoever be held invalid, then such covenants, agreements or
provisions shall be null and VQid and shall be deemed separable
from the remaining covenants, ,agreements or provisions and shall
in no way affect the validity of any of the other provisions hereof
or of the obligations or coupons issued hereunder.
SECTION 20. SALE OF OßLIGATŒONS. The obligations
shall be issued and sold in such manner and at such price or
prices consistent with the Act, all at one time or in installments
from tiwe to time, as shall be hereafter determined by the governing
body of the issuer.
SECTION 21. VALIDATION AUTHORIZED. The attorney for
the issuer is authorized and directed to prepare and file proceed-
ings to validate the obligations in the manner provided by la\~.
SECTION 22. REPEALING CLAUSE. All ordinances or
p'arts thereof of the issuer in conflict wi th the provisions here-
in contained are, to the extent of such conflict, hereby superseded
and replealed.
SECTION 23. EFFECTIVE DATE. This ordinance shall
take effect in the manner provided by law.
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PASSED AND ADOPTED by the Council of the Ci~y of C1~rmont on:
"
1st Reading on December_ 9. 1969
2nd:.ndfinal reading on' December 23.
~" ,
)¿--~£ IJ~
Mayor
ATTEST:
O;~~4/ 1/, ~;,1
City Clerk, "
---------------------------------------------------------------.------
I HEREBY CERTIFY that a certified copy of this ordinance was posted
on the Public Municipal Bulletin Board in the City Administration
Bui 1 di ng for a peri od of not less than one week and that a summary
thereof was published on November 19. .1970. H,
, O~AJ 1)- /
Dolores W. Carro 1. Ci Y Clerk
City of Clermont. Florida