R-75-252RESOLUTION N0. 252
RL, ~OLIJTIOi] PROVIDIi~'G F'OR THE ACQUISITIOt•],
CONSTRUCTION A?~•ID EI2ECTI0~] OF E`<{`I'EI]SIO`15 11r1D
Ii•1PROVE'~1E'JTS TO THE P~UI]ICIPAL WATER AND
SE4~aE'P, SYSTE~~1; AUTHORI7,ING THE ISSUA^JCE OF
I.1OT EXCEEDI~]G ; 3~3, 100 Wt1TEP, AND SEWER
REVENUE BUC?DS, SERI]S 1975, TO FIrd1\PdCE
T;iE COST 'I'i-iEREOF; PLF.DGIi3G TiiE ;SET P.E'v'E-
NUrS OF SAID SYSTEi°i, CERTAIII r-IilT`]ICIPAL
E':CISE TAXES AND 71LL P-SOr]EYS OF 'I'i]E CITY
Dr^IVID FI'Oi~l SOIJRCES UTiIGR THAI] PD V1ILORE_-t
'I'mo :{1'.'I'IO'd I1I~?P. LEGALLY :~VE~II,ABLE FOR SUCII
PCJ:ZI'OS?= TO S?~CURE TiIL PAX:Ir;i~]T THEREOF ; Ai]D
PROVIliII]G FUR TIIE RIGiiTS OF THt, HOLDF..RS OF
SUCH :3OVD~.
~3?: I'~ P.FS'~LVJ;D PY TIIE CITY CUU[~ICIL OF `I'fi•. CITY OF
C.LERi•IOI?T, P'.LO?2I.~i~, as fol.lo~•.s:
ARTICLE I
GE t~I. RAL
1.01 Authority for this Resolution. This Resolution,
iierei.nafter called the "instrument," is adopted Pursuant to the
provisions of Chapter 159, Part I, Florida Statutes, and other
applicable provisions of law.
1.02 Findings. It is hereby found and determined that:
(A) For the benefit of its inhabitants, t'r-e City of
Clermont (hereinafter sometimes called the "Issuer") presently
o~,ans a water and sewer system (hereinafter sometimes referred to
as the "sy:~tem"); and it is necessary for the continued preserva-
tion of the health, welfare, convenience and safety of the Issuer
and its inhabitants to construct extensions and improvements to
the system (hereinafter referred to as the "project") in accord-
ance with certain plans and specifications now on .file with the
City Clerk of the Issuer {hereinafter sometimes called the "Clerk") .
(3) Tlie Issuer has }peen advised by its consulting
engineers that the cost of constructing the project in accordance
with said plans and specifications is estimated at 5323,10,
which shall be paid with the proceeds of the .sale of the bonds
::c-~rei.n authorized and shall be deemed to include a.ll expenses neces-
sari-, aL~purtenant nr incidental thereto, including the cost of any
lancJ or interest therein or of any fixtures or equiprnont, or pro-
I~(~rl-.y necessary or convenient tizerefor, the cast of lak~or and
A
materials to complete such construction, engineering and legal
expenses, fiscal ex~Jenses, expenses for estimates of costs and
revenues, Expenses for plans, specifications and surveys, interest
during construction, if any, administrative expenses and all other
T1C'CeSSary miscellaneous expenses.
(C) (i) ~~ursuant to Section 167.431, Florida Statutes,
t'z~v Issuer dicl, on October 10, 1957, enact non-emergency Ordinance
;.~o. 176 1evl~iilc, anti imposing a utilities services tax on every
r.; l-1 L~": :1_t3 r_` Of ~-~~E;:'C: tr lC lt'd'. CraS (na-tura~- 11C(L1 C'.f lEd U~'_trOlE~11 CJaS Or
~n-!r!uf~..tur_~,~u) , ~J~~tf'7' S:~rV1CE, tel-e~~~~lOne Sf?Y"V1.CC' i1nC3- tC'1r.-'.Cj?`<1p:1 iE?r~.•'1CP_
`.dlj~,l:L!1 tile'-. COJ°'~Ui'at~ 1_Ll'llt5 Of tllc Is~uer_.
Pu-rsuant to lava, the Issuer did on November 17, 1959,
under authority of an ordinance duly enacted, enter into an agree-
meat with Lake Rpopka ?datural Gas District for a period of thirty
(30) years whereby the Issuer caould receive a franchise tax by
reason of having granted to Lake Apopka Natural Gas District ~he
right to supply natural gas to the Issuer ar its inhabitants.
Pursuant to law, the Issuer did, on September 20, 1970,
under the authority of an ordinance duly enacted, enter into an
agreement ~•~ith Florida Power and Lig'rzt Company for a period of
thirty (30) years whereby the Issuer would receive a franchise tax
by reason of having granted to Florida Power and Light Company the
right to supply electric light and power facilities and services to
the Issuer or its inhabitants.
The proceeds to be derived by the Issuer from the
utilities services tax and from the franchise taxes are hereinafter
referred to as the °e:YC1.5e taxes."
{ii) The revenues to be derived annually from the.
rates, rentals, fees and other charges made and collected for the
services and facilities of the system are estimated to be
$ ~~~I. ~?~' ~ ` and, together with the proceeds of the excise
taxes will lie sufficient to pay the principal and interest on the
pr_i-or lien obligations, hereinafter defined, and the bonds herein
authorized as the same become due and the annual cost of operating,
red%airing and maintaining the system, the aggregate annual amount of
ta};ich is estimated to be $ ' ~% l:. ~~~ ~, It is estimated tha-t
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tic period of usefulness of the system ~~~ill exceed forty-one years.
(D} It is deemed necessary and desirable to pledge
the net revenues of the system and the proceeds of the excise taxes
to the payment of. the principal of and interest on the bonds herein
authorized. 1`1o part of such revenues and excise taxes will be
l~lcded or :rypothecated except with. respect to the bonds herein
authorized, and. except that sack revenues and excise taxes have
l~~ccn nl.e~~gcd first to the i/ayment of the l;rinr_iL:al of and interest
urn t=i~~~~ Issu~~r_'s outst~~nclinc~ tdater and Sew^r Revenue :3onds, Gated
'~'o~reTr,i~~r 1, 1`37(), and, idater_ and Sewer Revenue Refundincr F3onds,
Series 1972, dated. ?Jovem:.~er 1, 1972, hereinafter sometirr~es referred
to as the "nr.ior lien obligations". It is deemed necessary and
desirable to pledge as additional security for the payment of the
principal of and interest on the bonds all moneys of the Issuer
derived from sources other than ad valorem taxation evhich shall
be legally available for such purpose.
(E) This instrument is declared to be and shall con-
stitute a contract between the Issuer and the Holders of all such
bOI1dS; and the covenants and agreements herein set forth to be
performed by the Issuer are and shall be for the equal benefit,
protection and security of the legal holders of any and all such
bonds issued under this instrument, all of which shall be of equal
rank and without preference, priority or distinction of any of
the bonds over any other, except as ~Iereinafter provided.
(F) The Issuer is not, under this instrument, obligated
to levy any ad valorem tares on any real or personal property
situated within its corporate territorial limits to pay the prin-
cipal of or interest on the bonds hereinafter authorized or to pay
the cost of maintaining, repairing and operating the system. Such
bonds issued pursuant to this instrument shall not constitute a
lien upon tzc system or any other property of the Issuer or situ-
ated taitl~rin i+-s corporate territorial limits
1.03 Definitions. The f_ollow~ng terms in this instru-
ir~cnt shall 'Have the following meanings unless the text otherwise
exi~ressly requires:
(~) "Gross Revenues" derived from the operation of the
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system shill 1'?r'c-ln all moneys received from rates , fees, rentals
or other charges or incorle received by the Issuer or accruincl
to it in the manage,nent and operation of the system, all calcu-
lated in accordance ?•aith sound accounting nractic-e.
( ~3) "Onoratinc! Expenses" of the sy~tein shall mean
al? c,.IrrE:nt c~;c,~~~ns~~s, naici o.r accrued, for the operation, main-
tc>>anc~ and r~Uair of the s~,~stem and ii-.s facilities, as calcu-
].atec? in accor_;i,-?ncn ~•~it-z SOt1I1d accounting ~~ractice, anc? shell
i.!C~.~" .~=_, .d:L~:'~OL1L .~1;_t~t7.71c't tilC` r?iiCrallf':~~ of til^ `OrE:%Ol;?'_;, )_n-
,~~.7: ar:cr, :r.:~,n,iu°^s, ~:.rlrli~li.~tr<zt.i~r.-~ ~:~x;~~~nscs o` thy. Iss~_a~~~. related
solr_?1_°~ to t~lo sy.~t^m, la'~or, cost of materials ana su,)~~lles
us'?d. fo.r curren~.: operation, and charges fo.r the accumulation
of a~~l~ropriate reserves for current expenses not annually recur-
rent but ~ahic-li are such as may reasonably be expected to bo
incurred in accordance taitiz sound accounting practice. "Opera-
ting Expenses" shall not include any allowance for depreciation
or for renewals or replacements of capital assets of the system.
(C) "riet REVenues" of the system shall mean the gross
revenues thereof, as defined in subsection (A), after deducting
therefrom only the operating expenses of the same, as defined in
subsection (B).
(D} "Fiscal Year" shall mean the period commencing
on October 1 of each year and continuing to and including the
SUCCeedlIlg September 3U.
1.04 Project Authorized. The Issuer is hereby author-
ized to construct the project as defined in Section 1.02 (A) above.
ARTICLE II
AUTHORI2?1TION, TEF2i~IS . EXECUTIOtd Ai1D
I2EGISTRATI0~1 OF REVENUE I3Oi~IDS
2.01 Autizorization of Revenue Bonds. Subject and pur-
scant to the provisions of this instrument, obligations of the
Issuer_ to he ]mown as "City of Clermont Water and Sower Revenue
~~onds, Series 175" (Hereinafter sometimes referred to as the
";!<J'.?C~:i") 3r(-_' i1CL"~?i)~T ~311ti1Qr17E?C1 tO 1)C'_ LSSU°:'Cj. In an ac~i~JrC-`!~cZtC-'_ prlnCl-
pal amount not exceeding Three Hundred Twenty -three Thousand One
hundred Dollars ($323,100) for the purpose of providing funds to pay
the cost of such project provided for in Section i.02 hereof.
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1
2.~~~ l~t_'SCr].l±t]_On Of i;OnC1S. 7~h~' }->On:~S 1^SUr?Ci }1r?rC'llil(aCr
::i •„c).~ 1. }i':' CI1rC'C~ %?.^• OE t}1.~ Cl cz to Of thclr dC11~i C?r`7/; shall 1)': _` 121 t}1C
denomination of $1,000.00, or any multiple thereof (except bond
number one which shall be in the denomination of $3,100, not
exceeding $10,000 or the amount maturing in each year; shall be
numbered consecutively from 1 upward; shall bear interest at not
exceeding the legal rate per annum, payable on September 1, 1975,
and annually thereafter on Septem}~er 1 of each year; and shall
mature serially iii numerical order on September 1 of each year
in the years and amounts as follow:
Y);AR Ai~IOU~JT YEAR AP~IOUPJT
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
YEAR
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Ah1OUi~T
$11,000
11,000
12,000
12,000
13,000
13,000
14,000
15,000
16,000
17,000
18,000
18,000
2.03 Places of Payment. Sucli bonds shall b~ issued
in coupon form; shall be payable as to berth principal and interest-
at SL1C}1 place o.r places as the Iss»er shall hereafter by resolution
designate, in la~.~ful money of the United States of r~Rerica; and
shall bear interest froth the date of iss>», in accordance with
ar.~3 ~~~~on surrender of tiie appurtenant interest- coupons as they
severally mature, unless registered; provided, ho~•rwer, that bonds
held by the United States of America, acting through the Farmers
`t2'o;71" AdP.llnlStratlOrl, U. S. Department of Agriculture, hereinafter
called -tae "Government," shall bc: payable at "Finance Office, U. 5.
D~l:artrnent of Agriculture, Farmers home Administration, 1520
ilar'.~et Street, St. Louis, P~tissouri 63103," or at such other places
~-ts the Government shall from time to time in t~rritinq designate to
t~;C' ?sSthl .
2.01 Provisions for Reoeml_~tion. Bonds maturinn on or
-~:~L-ore S~pt-em)Jer 1, 193 are not subiect to redemption prior to
tl~nir r~~si-~octive stated d~atos of maturity. Bonds maturing Septem:~er
1, 1935 and th~~reaf_ter. shall, at the option of the Issuer, b^
$ 3,100
3,000
3,000
3,000
4,000
4,000
4,000
4,000
4,000
5,000
5,000
5,000
5,000
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
$ 6,000
6,000
6,000
7,000
7,000
7,000
8,000
8,000
8,000
9,000
9,000
10,000
10,000
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rr•,lec.:~ah1n in e~~hole or in part, in inverse numerical and maturity
order, on Sept~rnber 1, 1935 or on any interest payr~lent date there-
af.tcr at par and accrued interest, plus the following nremituns,
e;:;~ressed as percentages of the par value of the bonds so re-
deemed, it redeemed in the following years;
5;;, ii recleerned. or. Se~?tember ]_, 1935 or thereafter,
to anal including September 1, 1`_)83;
4 ?; , i L- z ~ciec,ned. on S ep ter..I',,er 1 , 19 39 c~r_ ti-rereaf tc~r,
to and includinc~ Septelnb~r 1, 1992;
3"', i." rc~c:ee.;,c~l on S~~t?tern}~er 1 , 19~t' o:r t~r.~rc'aftC'r,
to artd including 5el~te^Z'~~>.r_ 1, ].~ 3 f; ;
~`:, if I"''.CAE'^i'itr'd OI.I a~:~i%LF't??+~~?" ]. r 1`)~ ~ o!_' t_l~creaf ter.
to and including, Soy?ten?i;or. 1, 2000;
1°, ii redeemed on September 1, 2001 or thereafter,
to and including September 1, 2004;
i~7ith out premium, if redeemed Sep tember 1, 2005 or
ther eafter, but prior to maturit y;
provided, however, that at least thirty (30) days prior to the
redemption date c~~ritten notice of such redemption shall be given
to the paying agents for the bonds and to each of the registered
ocaners at their res;~ective addres~~es as they appear upon the re-
gistration books of the Clerk of the Issuer and shall be published
at least once in a financial newspaper published in the City of
i~Ieca York, New York. Bonds held by the Government may ba redeemed
by the Issuer on any interest payment date prior to maturity at
the price of par and accrued interest, without prel~ium.
2.05 execution of Bonds. The bonds shall be executed
in the name of the Issuer by its A4ayor and the corporate seal of
the Issuer shall be impressed thereon, attested and countersigned
ley its Clerk. In case any one or more of the officers w}~o shall
have sinned or sealed any of t}le bonds shall cease to be such
officer of the Issuer before the bonds so signed and sealed have
been actually sold and delivered, such bonds may nevertheless be
sold and delivered as herein provided and may be issued as if the
horson .:ho signed or sealed such bonds had not ceased to hold such
orficc. The validation certificate endorsed on the bonds shall
bo ~x~cutod Uy the ~~iayor. Any bond may br: signed and sealed on
be!i~~_]_f of the Issuer by such person who at the actual time of the
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~,.T~~cution of such bond shall hold the pror)er office of the Issi+er,
although at thc~ date of sttch bonds such person may not have held
such office or relay not have beelz so authorised. The coupons
attached to the brtncls shall be authenticated t~~~th tine facsimile
sictn.ltures o"` an_l~ present or future _'lay^r and Clerk of the Is ,i,tr.
~~:t~^ I<~C~l~r ie1~1y aC3OCti: ancJ. LtS<' for Si1CiZ t7ttrp^St~S t'.1C' fac~ti"111E'
s~-~n~t.turc~~-> of aI2_t i7Ci1 1:E'_rSC~nS w'10 Shall !"!%~vF' h~~lc'. S17C!1 Offlre=i
-. -. `). ~_. "t ~ t.,,.- C;i;,, r1 =1.F_n Cf t~lr' ~iC~IO)F i.,21 Of I=~ILF; .tor ~-.lllJaf?i.lt,
.. ,: ~~'.',:5~")..*'i~li:C t~.lJi '?1_Ll':;l" Or ~)Ota snap. :1~ti.-` Ct',-:~ .1 ~..,~ 'loll
,~ ~ ~ O:._flr'=^ _.i ti+C. tit,t.? t'1.. })On!l s s1,a11 })~~' _tCt:.ttal_1`, F;OIC'. ~=tt"t~_%
2. ~G 't^r~oti-~hili+-y alld RocTistrati~n. The `)OIlds shall
be and shall (lave all the q»alities and incidents of negotiable
instruments under the law merchant anc7 the LawG of the State of
Florida, and each successive holder, in accepting any of the bonds
or_ the coupons appertaining thereto, shall b~ conclusively deemed
to have agreed that the bonds shall be and have all of said quali-
ties and incic'.ents of negotiable instrtull~nts.
The binds may be registered, at the option of the holderr.,
as to both :~.rincinal and interest- upon the books kept-. for the
reois+-ration and transfer of bonds by the Cler}:, as Bond Registrar,
and indorsed upon the bonds by the Bond Registrar in the sp?ce
provi~?ed thereon, 1lfter such rectistratic~n, no transfer of the
bonds shall 'c)o valirJ unloss made at the office of the Bond Regisi-.rar
by the ~'egisterecl owner or by his duly authorised agent or repre-
sentative and similarly noted on the binds, h»t at the expense
of tale holder t'~e bonds may be disc}urged from regis+-ration by
being in like manner transferred to bearer, and thereupon trans-
ferability by delivery shall be restored. At the option and expense
of the holder, the bonds may thereafter again from time to time b~
registered or transferred to bearer as before. The Bond Registrar
s11aJ 1 not b^ required to make any such transfer of bonds during
fifteen (15) says next Preceding an interest pay;;tent date on the
}~oncJs or, in the case of any proposed red~ml~tion of bonds, aster
such 1)onds have }_):~en selected for redemption. The person in wi)os~
n._tm~ any bond shall be registered shall be deemed and regarded as
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t ~ absolute o:aner thereof for all purposes, and payment of or
on account of the principal of any bond and the interest on any
bOI1d shall be made only to or upon the order of the registered
owner thereof or his legal representative. All such payments
shall be valid and effectual to satisfy and discharge the liability
upon such bond including the interest thereon to the extent of
the surn or sums so paid.
2.07 Bonds `•Zutilated, Destroyed, Stolen or Lost. In
c,, =;~~ antra bolt c? sha]_1 become mutilated, ar be destroyed, stolen or
lost, t}ic Issuer may in its discretion issue and deliver a ne~•i
bond of like tenor. as the bond so mutilated, destroyed, stolen or
lost, in exci~ange and substitution for such mutilated bond, upon
surrender and cancellation of such mutilated bond, or in lieu of
and substitution for the bond destroyed, stolen or lost, and upon
the owner furnishing the Issuer satisfactory indemnity and comply-
ing caith such other reasonable regulations and conditions as the
Issuer may prescribe and paying such expenses as the Issuer may
incur. All bonds so surrendered shall be cancelled by the Clerk.
If any such bonds shall have matured or be about to mature, instead
of issuing a substitute bond the Issuer may pay the same, upon
being indemnified as aforesaid, and if such bond be lost, stolen
or destroyed without surrender thereof.
Any such duplicate bonds issued pursuant to this section
shall constitute original,
part of the Issuer whether
bonds be at any time found
shall be entitled to equal
as to lien on and source a
as hereinafter pledged, to
hereunder.
additional contractual obligations on the
or not the lost, stolen or destroyed
by anyone, and such duplicate bonds
and proportionate benefits and rights
zd security for payment from the funds,
the same extent as all other bonds issued
2.08 Form of Bonds. The text of the bonds shall be in
substantially the following form, with only such omissions, inser-
bons and variations as may be necessary and desirable and approved
by the t-tayor prior to the issuance thereof (which approval may
be presumed by his execution of the bonds and the Issuer's delivery
cif ti-Ie bonds to the purchaser thereof)
_g_
r.10 .
Ui1ITED STATES OF A,IERICA
STATE OF FLORIDA
COt1NTY OF LAKE
CITY OF CLBRi~IONT
~dATER AND ~LPt1;R REV%~TUE UOND
SERIES 1975
S
•
:~CdO:~T ALL PiFi•1 13Y `i'IILSE PP.ESr~ITS, that the City of Clermont,
a public body created and existing under and by virtue of the Laws
of the State of Florida (hereinafter sometimes referred to as t}ie
"r ;~;:ac~~ ") , fcr --~l.u~ received, hereby promises to I~ay to the bearer,
o.r_ if ±:his bared 1~e registered to the registered Bolder as h~~rcin
~::rovidc~cz, on the first da.y of September, 19 , from the special
funds hereinafter mentioned, the principal sum of
TIiOUSA?~ID DOLLARS
and to pay interest thereon, from the date of the delivery of this
bond to the purchaser thereof, solely from said special funds, at
the rate of
per centum
$) per annum,
payable on September 1, 1975 and annually thereafter on the first
day of September of each year upon the presentation and surrender
of the annexed coupons as they severally fall due. Both principal
of and interest on this bond are payable at
in lawful money of the United States
of America.
This bond is one of an authorized issue of bonds in the
aggregate principal amount of $323,100 of like date, tenor and
effect, except as to number, denomination, interest rate (if all
bonds do not bear the same rate of interest) and date of maturity,
issued to finance the cost of acquiring, erecting and constructing
extensions and improvements to the combined municipal water and
sewer system of the Issuer, hereinafter referred to as the "system",
under the authority of and in full compliance with the Constitution
and Statutes of the State of Florida, particularly Chapter 159,
Part I, Florida Statutes, and a resolution duly enacted by the
Issuer on 1974 {herein referred to as the
"Resolution"), and is subject to all the terms and conditions
of such Resolution.
This bond and the interest thereon are payable solely
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fro:;: and secured by a lien upon and a pledge of the r~et revenues
to be derived from the operation of the system, the proceeds of
certain municipal excise taxes and a pledge of all moneys of the
Issuer derived from sources other than ad valorem taxation and
legally available for such purpose, in the manner described in the
??esolution. It is expressly agreed by the holder of this bond that
the full faith and credit of the Issuer are not pledged to the
;~.-~vrient af_ th^ r-~rincipa]_ of and interest on this bond and that such
'~:~1~.'c r r,li~].?_ ;never have the ri~~ht to re:Yuire o.r cor,;pel the e:~:ercise
cf un•Y taxing po~,~er of the Issuer to the payment of such principal.
and interest or the cost of maintaining, repairing and operating the
system. This bond and the obligation evidenced hereby shall not
constitute a lien upon the system or any part thereof or upon any
other property of the Issuer or situated within its corporate limits,
but shall constitute a lien only on the revenues derived from the
operation of the system and said excise taxes.
The lien of the holders of the bonds of the issue of
which this bond is one on the revenues of the system and thz excise
taxes is junior, subordinate and inferior in every respect to the
lien on such revenues and excise taxes in favor of the Issuer's
outstanding Water and Sewer Revenue Bonds, dated November 1, 1970,
and Water and Sewer Revenue Refunding Bonds, Series 1972, dated
t~lovember 1, 1972, hereinafter referred to as the "prior lien obli-
gations". The Issuer in the Resolution has covenanted and agreed
with the holders of the bonds of the issue of which this bond is one
that it will not hereafter issue any additional obligations payable
from the revenues of the system or the excise taxes on a parity with
,the prior lien obligations.
In and by the Resolution, the Issuer has covenanted and
agreed with the solders 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 said excise taxes,
will always produce cash revenues sufficient to pay, and out of such
funds pay, as the same shall become due, the principal of and in-
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tcrest on the prior Lien ob]_igations and the bonds, the necessary
e~;penses of operating and maintaining the system and all reserve,
Sinking Fund or other payments required by the Resolution, and that
such rates, rentals, fees and other charges will not be reduced so
as to be insufficient to provide funds for such purposes, and that
it ~~~ill levy and collect said excise taxes at such rates, not
exceeding the ma.{imum rates permitted by law, as shall be necessary
to provide funds which, tonether e~ith the revenues of the system
~r~.1.1 `;~~ s~~ Ef lci.~rit to pay, and out of such f.ur.ds pay, as the same
~~hall ?~~co~ne due, the principal of and interest on the ho;zds, the
n^cf~ssary exl:enses of operating a?id maintaining the system and all
reserve, Sinking Fund or other payments required by the Resolution,
and that the rates of such excise taxes will not be reduced so as
to be insufficient to provide funds for such purposes.
The bonds of this issue maturing on or before September 1,
1985 are not subject to redemption prior to their respective stated
dates of maturity. Bonds maturing September 1, 1986 and thereafter
shall, at the option of the Issuer, be redeemable in whole or in
part, in inverse numerical and maturity order, on September 1,
1985 or on any interest payment date thereafter at par and accrued
interest, plus the following premiums, expressed as percentages of
the par value of the bonds so redeemed, if redeemed in the follow-
ing years:
5°;, if redeemed on September 1, 1985 or thereafter,
to and including September 1, 1988;
4~, if redeemed on September 1, 1989 or thereafter,
to and including September 1, 1992;
3~, if redeemed on September 1, 1993 or thereafter,
to and including September 1, 1996;
2°;, if redeemed on September 1, 1997 or thereafter,
to and including, September 1, 2000;
1~, if redeemed on September 1, 2001 or thereafter,
to and including September 1, 2004;
[~~ith out premium, if redeemed September 1, 2005 or
ther eafter, but prior to maturity;
provided, izo~aever, that notice of such redemption shall he given
in the manner required by the Resolution.
It is hereby certified and recited that all acts, con-
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ditions and things required to e::ist, to happen and to be performed
precedent to and in the issuance of this bond, exist, have happened
and have been performed, in regular and due form and time as re-
quired by the Lacas and Constitution of the State of Florida appli-
cable thereto, and that the issuance of this bond, and of the
iss'ao of bonds of ;which this bond is one, does not violate any con-
stitlztiorlal, statutory or charter limitations or provisions.
This bond and the coupons appertaining thereto are and
il~~~.•;~ X11 ]_ !_i1C? <~Ua]_if~leS and incidents Of n(_'<i0tl~~b~E? 1nSt?"l]n!'?ntS
un l~r the lava merchant and the Lars of the State of F1 orida.
'his bond may be registered as to both principal and
interest in accordance with the provisions endorsed hereon.
Iid jti'ITNESS FJHEREOF, the City of Clermont, Florida,
has issued this bond and has caused the same to be executed in its
name and on its behalf by its I•sayor and its corporate seal to be
impressed hereon, attested and countersigned by its Clerk, all as
of
(SEAL)
ATTESTED AND COLINTERSIGrdED:
Clerk
CITY OF CLERI.IONT, FLORIDA
By
I.layor
FORM OF COUPOiJ
No.
On the 1st day of September, 19 , unless the bond to
which this coupon is attached is callable and shall have been
previously duly called for prior redemption and payment thereof
duly made or provided for, the City of Clermont, Florida, will
pay to the bearer at
Florida, from
the special funds described in the bond to which this coupon is
attached, the amount shoran hereon in lawful money of the United
States of America, upon presentation and surrender of this coupon,
boing one year's interest then clue on its [dater and Sewer Revenue
19
-12-
Bond, dated 19 ~Io.
CITY OF CLERMONT, FLORIDA
By
(S E?lL ) t-iay o r
11`I'TESTED Ar.D COLJNTERSIGNED:
Clerk
F'OR'T GF VaLIDATI0P1 CER`I'IFICT~TE'
`T'his bond is one of. a series of bonds ~:r}zicii ~~7ere va)_i-
dalcd by judgment of the Circuit Court far Lai.e County, Florida
rendered on , 19
Mayor
PROVISIONS FOR REGISTRATION
This bond may be registered as to both principal and
interest on the books kept by said Clerk, as Bond Registrar, such
registration being noted hereon by the Bond Registrar in the
registration blank below, the coupons being surrendered and the
interest being payable only to the registered holder, remitted by
mail, after which registration no transfer shall be valid unless
made on said books by the registered holder or his legal representa-
tive and similarly noted in the registration blank below, but it
racy be discharged from registration by being transferred to bearer,
after which it shall be transferable by delivery, or it may again
be registered as before. Upon reconversion of this bond into a
coupon bond, coupons representing the interest to accrue upon
the bond to date of maturity shall be attached hereto.
Date of Name and Address of Signature of
Registration Registered Owner Bond Registrar
-13-
ARTICLE III
COVENANTS, SPECIAL FUt1D5
AND APPLICATIOt1 THEREOF
3.01 Bonds Not Z'o Be Indebtedness of Issuer. Neither
thr~ bonds nor the coupons attached thereto shall be or constitute
cr.~neral obligations or indebtedness of the Issuer as "bonds" within
the meaning of Article VII, Section 12 of the Constitution of
Florida, but shall be payable solely from and secured by a lien
,,,:c:~:l ~~.tic.i a I~Ied?o o.E said n~,t revenues and excise ta:.os and a
l~l.cd~7e of all moneys of the Issuer derived from sources other than
ad ~~alorem taxation and legally available for such purpose, as
herein provided. t1o owner or holder of any bond or coupon issued
hereunder shall ever have the right to compel the exercise of any
ad valorem taxing power to pay such bond or coupon or the cost of
operating and maintaining the system, or be entitled to payment of
such bond or coupon from any funds of the Issuer except from the
net revenues derived from the operation of the system, the e::cise
taxes, and all moneys of the Issuer derived from sources other
than ad valorem taxation and legally available for such purpose,
in the manner provided herein.
3.02 Security for Bonds The payment of the debt ser-
vice of all of the bonds issued hereunder shall be secured forthwith
equally and ratably by a pledge of and a lien upon the net revenues
derived from the operation of the system, as now or hereafter
constituted and the excise taxes, and a pledge of all moneys of
the Issuer derived from sources other than ad valorem taxation and
legally available for such purpose. The Issuer does hereby irrevoc-
ably pledge such funds to the payment of the principal of and
interest on the bonds issued pursuant to this instrument and to the
payment into the Sinking Fund at the times provided of the sums
required to secure the holders of the bonds issued hereunder
the payment of the principal of and interest thereon at the res-
r~ective maturities of the bonds and coupons so held by them.
The lien on and pledc7e of the revenues of the system and
tile' excise ta:;es in favor of the holders of the bonds is junior,
su~~ordinate and inferior in every respect to the pledge of and
lien on such revenues and excise taxes in favor of the holders of
-14-
the Issuer's said outstanding prior lien. obligations.
3.03 Application of IIond Proceeds. The Issuer hereby
covenants that it will establish with the
IIank, Florida, a separate account or accounts
(herein collectively called the "Construction Account") into
,.a'r~ich shall be deposited the proceeds from the sale of the bonds
herein authorized (except such portion thereof as si1a11 be necessary
to i?a~~ interest on the bonds during the construction of tine project,
~::i~icli shall i;c clel,osited in the S:i_n}:ing Fund) and tho additional
funds, if any, required to assure payment in full of the cost of
tli~~ project, ttiiti~drawals from the Construction Account shall be
made only for such purposes as shall have been previously speci-
fied in the project cost estimates and as shall be approved by
the Issuer's consulting engineers for the project.
The Issuer's share of any liquidated damages or other
moneys paid by defaulting contractors or their sureties, and all
proceeds of insurance compensating for damages to the project
during the period of construction, shall be deposited in the Con-
struction Account to assure completion of the project.
Moneys in the Construction Account shall be secured by
the depository bank in accordance with U. S. Treasury Department
Circular 176 and in the manner prescribed by the Laws of the State
of Florida relating to the securing of public funds. When the moneys
on deposit in the Construction Account exceed the estimated dis-
bursements on account of the project for the ne::t 90 days, the
`Issuer may direct the depository bank to invest such excess funds
in direct obligations of or obligations the principal of and inter-
est on which are guaranteed by the United States of America, which
shall be subject to redemption at any time at face value by the
holder thereof, The earnings from any such investment shall be
ciehosited in the Construction Account.
~dhen the construction of the project has been completed
and all construction costs have been paid in full, all funds
remaining in the Construction Account shall he deposited in the
Sin}:ing Fund hereinafter established, and the Construction Account
shall be closed.
-15-
All moneys deposited in said Construction Account shall
be and constitute a trust fund created for the purposes stated,
and there is hereby created a lien upon such fund in favor of the
holders of the bonds until the moneys thereof shall have been
applied in accordance with this instrument.
3,0~ Covenants of the I~;suer, So long as any of the
principal of or interest on any of the bonds shall be outstandinc,
ant urpai.d, or ~lntil there shall have been set apart in the Sin}:inq
f.'~;?1~? ,~~,~x~t~in c, _;f.~_~hl.i_shc1, includincJ the 1;r',erce Account therein,
a ,,urr~ su.Eficient to pay, :when due, t}~o enti_ro orincip<~l of the
~~enc.'.s re:-~aining unpaid, together ~~~ith interest accrued and to
accrue thereon, the Issuer covenants with the holders of any and
all of the bonds issued pursuant to this instrument as follows:
(A) Annual Budget of Current Expenses. The Issuer
covenants and agrees that on or before the date of delivery of
the bonds to the purchaser thereof, it will adopt a budget of
Current Expenses far the system for the remainder of the then
current fiscal year and thereafter, on or before the first day of
each fiscal year during which any of the bonds are outstanding, it
will adopt an Annual Budget of Current Expenses for the ensuing
fiscal year, and will mail a copy of such budget or amendments
thereto to any requesting bondholder. Current Expenses shall in-
clude all reasonable and necessary costs of operating, repairing,
maintaining and insuring the system, but shall exclude depreciation,
payments into the Sinking Fund and payments into the Reserve Account..
The Issuer covenants that the Current Expenses incurred in any year
will not exceed the reasonable and necessary amounts required
therefor, and that it will not expend any amount or incur any
obli7.ations for the operation, maintenance and repair in excess
of the amount provided for Current Expenses in the Annual Budget,
e}:cept upon resolution of the City Council that such expenses
are necessary to operate and maintain the system,
(F3) Revenue Fund. The Issuer covenants and agrees
that on or before the date of delivery of the bonds to the pur-
chaser thereof, it will establish ~•:ith a depository in the State
of_ Florida, which is a member of the Federal Deposit Insurance
-16-
Corporation and which is eligible under the Laws of the State of
E'lorida to receive municipal funds, and maintain so long as any
of the bonds are outstanding, a special fund to be known as the
"1575 Clermont Water and Sewer System Revenue Fund", hereinafter
called the "Revenue Fund". The P,evenue Fund shall be held by the
Issuer separate and apart from all other funds and shall be
ex}~ended and used only in the manner and order specified in
l~a.ragraplls (C) , (D) and (~) of this Section.
i~h~~ Issuer further covenants and a.grces that ~:~henever,
`ro!-~ time to time, at any time det~osits from the revenues of the
s-r~ster~l shall have been made sufficiently for minimum compliance
;~:ith the covenants, requirements and provisions of the ordinances
enacted by tl~e Issuer authorizing issuance of the prior lien obli-
gations, and such required deposits shall be made monthly, the
balance of any and all revenues of the system and/or any balance
of moneys on deposit in the "Revenue Fund" heretofore created
and established for the benefit of the prior lien obligations which
s~~all be in excess of the requirements for minimum compliance with
such covenants, requirements and provisions of said ordinances shall
forthwith, and not less frequently than monthly, be deposited into
said Revenue Fund hereby created. ~dhenever the said covenants,
requirements and provisions of such ordinances shall no longer re-
quire deposits of revenues of the system for the debt service of
the prior lien obligations, the Issuer shall deposit into the
P.evenue Fund, promptly as received, all cash income received from
the ownership and operation of the system.
(C) Bond and Interest Sinking Fund. The Issuer cove-
nants and agrees to establish with a depository in the State of
Florida, which is a member of the Federal Deposit Insurance Corp-
oration, and cahich is eligible under the Laws of the State of
Florida to receive municipal funds a special fund or funds, collec-
tive].y called "1975 Clermont i°7a ter and Sewer System Bond and Interest
Sizlking Fund", hereinafter called the "Sinking Fund", to be used
exclusively for the purposes hereinafter mentioned. after delivery
of the bonds to the purchaser thereof, the Issuer shall transfer
on or before the 15th day of each month from the Revenue Fund and
-17-
' •
•
deposit to the credit of the Sinking Fund the following amounts:
(1) A sum equal. to 1/12 of the amount of one year's
interest on all the bonds then outstanding, together with the
amount of any deficiency in prior deposits for interest; and
(2) Beginning on September l~, 1977, a sum equal to
1/12 of the principal of the bonds maturing on the next succeed-
ing anniversary date, together with the amount of any deficiency
in prior deposits for principal.
(3) After fulfillment of the rc~cluir'ments of para-
crra~~hs (C) (1) and (2) , the Issuer shall transfer on or bcforo the
15th day of each month from the Revenue Fund and deposit to the
cr_cdit of a sper.ial account in the Sin'ring Fund, herein called
the "Reserve Account", the sum of One Hundred Sixty Dollars ($160.00}
until such time as the funds and investments therein shall equal
tJineteen Thousand Two Hundred Dollars ($19,200), and monthly there-
after such amount as may be necessary to maintain in the Reserve
Account the sum of Nineteen Thousand Two Hundred Dollars ($19,200)
but not exceeding One Hundred Sixty Dollars ($160.00) monthly. rioneys
i~~ the Reserve Account shall be used only for (1) paying the cost
of repairing or replacing any damage to the system which shall be
caused by an unforeseen catastrophe, (2) constructing improve-
ments or extensions to the system which shall increase its net
revenues and which shall be approved by said consulting engineers,
if the Issuer shall not then be in default under any of the pro-
visions of this instrument, and (3) paying the principal of and
interest on the bonds in the event that the moneys in the Sinking
Fund shall ever be insufficient to meet such payments.
(D) Operation of Maintenance Fund. whenever provision
for the payment of the reasonable current expenses of the operating,
m.-air.taining and repairing of the system pursuant to the provisions
of said ordinances authorizing issuance of the prior lien obliga-
tions shall expire or cease by reason of the terms of such ordinances,
or far any other reason, the Issuer covenants and agrees to
establish with a depository in the State of Florida, which is a
member of the Federal Deposit Insurance Corporation, and which is
-18-
•
eligible under the Laws of the State of Florida to receive munici-
pal. funds, a special fund to be known as the "Clermont 4v'ater
and Sewer System Operation and Maintenance Fund", herein called
the "Operation and Maintenance Fund," which shall be used exclu-
sively for the purpose of receiving funds to be transferred monthly
by the Issuer from the Uevenue Fund, and for paying, as they
accrue, the Current Expenses of the system pursuant to the Annual
Pu;7czet_ ?~.fter clolivery of the bonds to thy, purcha~;~~~r thereof,
:i ~.?ti Ali t. t'.r ll %.S Tl 1. 11 C{ m~a ~I F; the depOSLtS t0 t}1 <.-'. Clnklr]C'• r'unC~ c~.S ~)r0-
Vld;^cl ].n pu.rclUr~2r~}"1 ~C) abOVO, thE=' Issller Shall tr?P.SfEr On Or
l.~c~fore the 15th clav of each month from. the Revenue Fund and
dec~osit to the crec.lit of the Operating and P~4aintenance Fund a sum
sufficient to pay the. Current Expenses of the system for the
current month, all in accordance with the Annual Budget. Any
balance remaining in the Operation and Maintenance Fund at the
end of the fiscal year and not required to pay costs incurred
during said fiscal year shall be deposited promptly into the
Revenue Fund.
(E) E:~cise Taxes Fund. The Issuer covenants and agrees
to establish with a depository in the State of Florida, which is
a member of the Federal Deposit Insurance Corporation, and which
is eligible, under the Laws of the State of Florida to receive
municipal funds, a special fund to be known as the "1975 Clermont
Excise Taxes Fund", hereinafter called the "Excise Taxes Fund".
The Issuer further covenants and agrees that whenever,
from time to time, at any time deposits from the excise taxes
shall have been made sufficiently for minimum compliance with the
covenants, requirements and provisions of the ordinances enacted
by the Issuer authorizing issuance of the prior lien obligations,
and such required deposits shall be made monthly, the balance of
moneys on deposit in the "1972 Excise Taxes Fund" heretofore
created and esta}~li.shed f.or the benefit of the prior lien obliga-
tions dated rlovember 1, 1972, which shall be in excess of the
requirements fo.r minimum compliance with such covenants, reduire-
rnents and provisions of said ordinances shall forthwith, and not
less frequently than monthly, be deposited into said 1975 Excise
-19-
`faxes Fund hereby created. ~~henever the said covenants, require-
ments and provisions of such ordinances shall no longer require
deposits of the excise taxes for the debt service of the prior
lien obligations, the Issuer shall deposit into the 1975 Excise
Taxes Fund, promptly as received, all of the excise taxes as soon
as the same are collected by the Issuer.
;>lhenever by reason of the insufficiency of moneys on
dE~p~sit in the F.evenue Fund the Issuer is not able to make oromptl.y
':~i~ current r;c?nthly payments requ.i.r.ed to b~ made 1>ur.suant to the
provisions of Taragraphs (C) and (D} above, there shall be paid
into the Revenue Fund from the moneys on deposit in the 1975
Excise Taxes Fund whatever sums are necessary to cure such ex-
isting deficit. After the 15th day of each month, if all of the
above-required current payments have been made from the Revenue
Fund, and from the 1975 Excise Taxes Fund to the extent neces-
sary, the balance of any moneys on deposit in the 1975 Excise
Taxes Fund may be withdrawn and used by the Issuer for any lawful
municipal purpose.
(F) Deficiency or Excess Funds. P~henever by reason of
the insufficiency of moneys on deposit in the Revenue Fund the
Issuer is not able to make promptly the current monthly payments
required to be made pursuant to the provisions of paragraph (C)
above, the Issuer covenants and agrees that it will pay into the
Revenue Fund from any moneys of the Issuer derived from sources
other than ad valorem taxation and legally available for such
purpose whatever sums are necessary to cure such existing defi-
cit. Subject to the provisions for the disposition of revenues
in paragraphs fC) and (D), which are cumulative, the Issuer shall,
on or before the 15th day of September of each year, transfer to
the Reserve Account in tl~e Sinking Fund the balance of moneys re-
maining in the Revenue Fund for the prompt use by the Issuer to
redeem bonds in inverse numerical and maturity order or to acquire
outstanding bonds for retirement at not exceeding the price of par
and accrued interest, to the extent that funds and investments in the
Reserve Account exceed the amount of Nineteen Thousand Two Hundred
Dollars ($1.9,200), or the Issuer may use such balance of moneys re-
--20-
• •
maining in the Revenue Fund for the payment of debt service on
subordinate obligations.
(G) Trust Funds. The funds and accounts created and
established by this instrument shall constitute trust funds for
the purposes provided herein for such funds. All of such funds,
except as hereinafter provided, shall be continuously secured in
the same manner as municipal deposits of funds are required to be
Sf?Cli2'C'.d h~~ the Laws of the State of. Florida, T~oneys on deposit to
tl,e cre-J.it of: `he Reserve Account shall be invested by the deposi-
tort' bank, llpOil request by the Issuer, in direct obligations of,
or obligations the principal of and interest on which are guaran-
teed by the United States of America and which shall be subject to
redemption at face value at any time by the holder thereof at the
option of such holder; and the moneys on deposit to the credit of
the Sinking Fund may be so invested in such obligations which
shall mature not later than fifteen (15) days prior to the date
on which such moneys shall be needed to pay the principal of and
interest on the bonds in the manner herein provided, but money s
on deposit to the credit of the Revenue Fund, the 1975 Excise
Taxes Fund and the Operation and Maintenance Fund shall not be
invested at any time. The securities so purchased as an invest-
ment of funds shall be deemed at all times to be a part of the"
account from which the said investment was withdrawn, and the
interest accruing thereon and any profit realized therefrom
shall be credited to such account and any loss resulting from
such investment shall likewise be charged to said account.
(H) Rates and Charges. The Issuer covenants and
agrees to maintain and collect, so long as any of the bonds are
outstanding, s~leh schedule of rates and charges for the services
and facilities of the system which, together with the excise taxes,
~,~ill produce revenues which shall be sufficient to provide for
current debt service and reserve requirements for said outstand-
ing prior lien obligations and for the bonds herein authorized
and pay the reasonable expenses of operation and maintenance of
the system; and the Issuer covenants and agrees that so long as
any of the bonds are outstanding and unpaid, at the same time and
-21-
in like manner that the Issuer prepares its Annual Budget of the
Current Expenses, the Issuer shall annually prepare an estimate
of gross revenues to be derived from the operation, of the system
for the ensuing fiscal year, and to the extent that said gross
revenues, together with the excise taxes, are insufficient to pay
debt service requirements during such ensuing year on all out-
standing bonds payable from the revenues of the system, build up
and maintain the required reserves for all such outstanding bonds
;?;ir1 ~_a~;~ C~irront F;.-~t=senses, the Issuer shall rovise the fees and
rates charcred for the use of the services and facilities of the
system sufficiently to provide the funds required,
(I) Levy of Excise Taxes, The Issuer covenants and
agrees that it will not repeal the ordinances now in effect levying
the excise taxes and will not amend or modify said ordinances in
any manner so as to impair or adversely affect the power and obli-
gation of the Issuer to levy and collect such excise taxes or im-
pair or adversely affect in any manner the pledge of such excise
taxes ma~:e herein or the rights of the holders of the bonds. The
Issuer shall be unconditionally and irrevocably obligated, so long
as any of the bonds or the interest thereon are outstanding and
unpaid, to levy and collect such excise taxes at such rates, not
exceeding the maximum rates permitted by law, as shall be necessary
to provide funds which, together with the gross revenues of the
system, shall be sufficient to pay, as the same shall become due,
the principal of and interest on the bonds, the principal of and
interest on the prior lien obligations, the Current Expenses of
operating and maintaining the system and the other payments pro-
vided for herein. This provision shall not be construed to
prevent reasonable revisions of the rates of such excise taxes as
long as t11e proceeds of such excise taxes to be collected by the
Issuer in each year thereafter, together with the gross revenues
of the system, will be sufficient to pay the principal of and
interest on the bonds and the prior lien obligations as the same
shall become due and pay the current expenses of operating and main-
twining the system and to make the other payments herein required
in such year.
(J) Issuance of Other Obligations.
-22-
(1) `1'he Issuer covenants and agrees that in the event
the cost of construction or completion of the project shall exceed
the dollar amount of bonds heroin authorized, it shall deposit
into the Construction Account the amount of such excess out of
funds available to it for such purpose, and the Issuer may provide
such excess, and only such excess, throat;h the issuanco of parity
bonds conf_orrling to the requirements of_ pa.ragraph (3) of this sub-
section; !~~ut e::cept to compl.~te thc~ project, it mill not issue any
n ~~:1,~:;" O;?1_lrr~i t.l~~n:, payal~l_e fro';1 Or SG'('UreC~ l?1~ th~^. re`:'C'nLl~'S Of ttl°
s~.~stc'i:l ant? t}lc~ proceeds of the e:;cis^ tz;~~~'s or any other security
rl_~~uroc, to secure payment of the bonds herein authorized, unless
the conditions hereinafter set forth shall be met, or unless the
lien of such obligations is junior and subordinate in all respects
to the lien of these bonds. The Issuer covenants and agrees that
i.t will not issue any additional obligations payable from the
revenues of the system or the proceeds of the excise taxes on a
parity with the outstanding prior lien obligations.
(2) The Issuer shall have the right to add new ;eater
or sewer facilities and related auxiliary facilities, by the
issuance of one or more additional series of bonds to be secured
by a parity lien on and ratably payable from the net revenues
of the system and any other security pledged to these bonds,
provided in each instance that:
(a) The facility or facilities to be built from the
proceeds of the additional parity bonds is or are made a part of
the system and its or their revenues are pledged as additional
security for the additional parity bonds and the outstanding 'ponds.
(b) The Issuer is in compliance with all covenants and
undertakings in connection with all of its bonds then outstanding
and payable from the revenues of the system or any part thereof
and has not been in default as to any payments required to be
rlade under this instrument for a period of at least the next pre-
ceding 24 months, ar if at such time the bonds shall not have been
outstanding for 24 months then for the period that the bonds shall
have been outstanding.
(c) The annual net revenues (plus the proceeds of the
-23-
• •
c>:ccise taxes, if such excise taxes si~al_1 be pledged as security
for the outstanding bonds and the additional parity bonds) for
the fiscal year next preceding the issuance of additional parity
bonds are certified by an independent certified public accountant
not regularly employed by the Issuer, to have been equal to at
].east one and twenty-hundredths (1.20) times the average annual
requiretttents for principal and interest on all the bonds then
outstanding and u~tyable from such l~ledgec~ reven~~es.
{_~) :~'~t<y, estitr,ated averac7o annu~~l n"t r_+-~~,^nu~~~s of tf~ir,
tacilit}~ or f.aciliti.es to be constructed and ac-:Tarred ~tiith the
pro~~eeds of such additional bonds (and. any other funds pledged
and set aside for such purpose), when added to the estimated fu-
ture average annual net revenues of the then existing system (plus
the proceeds of the excise taxes, if such excise taxes shall be
pledged as security for the outstanding bonds and the additional
parity bonds) shall be at least one and twenty-hundredths (1.20)
times the average annual debt service requirements for principal and
interest on all outstanding bonds payable from the revenues of the
system and on the additional bonds proposed to be issued. Esti-
mates of future revenues and operating expenses shall be fur-
Wished by recognized independent consulting engineers and approved
by the City Council of the Issuer and by the 1+~Iayor thereof, and
shall be forecast over a period of not exceeding ten years from
the date of the additional bonds proposed to be issued. Pro-
vided, however, the conditions provided by this paragraph and by
the next preceding paragraph (c) may be waived or modified by the
written consent of the holders of seventy-five per centum (75~)
of the bonds their outstanding.
(3) The Issuerr_ hereby covenants and agrees that in the
event additional series of parity bonds are issued, it will provide
that said parity bonds shall mature according to a schedule which
most closely approximates equal annual installments of combined
}:principal and interest payments for such parity bonds and all other
bonds payable from the revenues of the system; it will adjust the
required deposits into the maximum amount to be maintained in the
Sinking Fund, including the Reserve Account therein, on the same
_2~-
•
~~
basis as hereinabove prescribed, to reflect the average annual debt
service on the additional bonds; and it will make such additional
bonds payable as to principal on September 1 of each year ir, which
principal falls due and the coupons attached thereto payable on
September 1 of each year. If in any subsequently issued series of
bonds secured by a parity lien on the revenues of the system it
is provided that excess revenues shall be used to redeem bonds in
~~d~.%rnce of schedu]_ed maturity, or if the Issuer at its option und~~.r-
~_::t~:~__'S t0 xC?C1~',E';:l OU"tSt<`intllTlcl bonds lIl adV~]I1CC Of SC11E'dUl~'d matUr].tyr
t}ic Issuer cavellants that calls of bonds r:il.l_ ne applied to each
scr_i~s of bonds on an equal pro rata basis, proportionate to the
or.incipal amount of bonds of each series outstanding at the time
of such call, to the extent that this may be accomplished in
accordance with the call provisions of the respective bond series,
but the Issuer shall have the right to call any or all outstand-
ing bonds which may be called at par prior to calling any bonds
that are callable at a premium.
(I:) Disposal of Facilities. The Issuer covenants and
agrees that, so long as any of the bonds are outstanding, it will
maintain its corporate identity and existance and will not sell
or otherwise dispose of any of the system facilities or any part
thereof, and, except as provided for above, it will not create
or Hermit to. be created any charge or lien on the revenues thereof
ranking equal or prior to the charge or lien of these bonds. Not-
withstanding the foregoing, the Issuer may at any time permanently
abandon the use of, or sell at fair market value, any of its system
facilities, provided that:
(a) It is in compliance with all covenants and under-
takings in connection with all of its bonds then outstanding and
payable from the revenues of the system, and the debt service
reserve for_ such bonds has been fully established;
(h) It c~iill, in the event of sale, apply the proceeds
to either (.i.} redemption of outstanding bonds in accordance with
the provisions governing repayment of bonds in advance of maturity,
or (2) replacement of the facility so disposed of by another facili-
-25-
. •
ty the revenues of ~•~hich shall be incorporated into the system as
herei.nbefore provided;
{c) Zt certifies, prior. to any abandonment of_ use,
that the facility to be abandoned is no longer economically feasi-
b1_e of producing net revenues; and
(cl) It certifies that the estimated net revenues of
the remainincr system facilities for the next
year, j~lus the estimated net .revenues of t}2e
::~ =~c!;:<~c~ +~n ti, _ s;,ste::~l, sat7.sfy th~~ earl2iT~T~~s
':'rOV1C}~`;~ 1.1 thls SE'Ctlnn r;OVCr12_l_12rf 1SSlI:_lnGE~
f, rit~:~ bond.:> .
succeeding fiscal
facility, if any, to
t~ t h~~~reir~}~.~for~`
cf ad:li`~i.on~-11
(L) Insurance on Systerl. ~~dhile any of the bonds shall
remain outstanding, the Issuer shall carry at least the follocaing
insurance coverage:
(1) Fire and extended coverage insurance on the insur-
able portions of the system, in amounts sufficient to provide for
not less than full recovery whenever a loss from perils insured
against does not exceed eighty per centum (80%) of the full insura-
ble value of the damaged facility.
In the event of any damage to or destruction of any
facility or facilities of the system, the Issuer shall deposit
the insurance proceeds in the Reserve Account and promptly arrange
for the application thereof to the repair or reconstruction of the
damaged or destroyed portion thereof.
(2) Public liability insurance relating to the operation
of the system, with limits of not less than $100,000 for one person
and $300,000 for more than one person involved in one accident, to
protect .the Issuer from claims for bodily injury and/or death and
not less than $10,000 for claims for damage to property of others
w}2ict1 may arise from the Issuer's operation of the system,
(3) If the Issuer owns or operates a vehicle in the
operation of the system, vehicular public liability insurance with
limits of not less than $100,000 for one person and $300,000 for
ir~ore than one person involved in one accident to protect the
Is:-suer from cl~~i~ns for bodily injury and death, and not less than
$10,000 against claims for damage to property of others which may
-2G-
arise from t}ze Issuer's operation of vehicles.
(4) 111 such insurance shall be carried for the benefit
of the holders of the bonds. All moneys received for losses
under any of such insurance, except public liability, are hereby
pledged by the Issuer as security for the bonds herein authorized,
until and unless such proceeds are used to remedy the loss or damage
for ~~rhic~i such proceeds are received, either by repairing the pro-
r~~rt~,~ darl~~:~ec'. or repl~~cing the r~~roperty ciE~st?-oyec] within ninsty
("~'~) ~'.a~-:~ fror,l the receipt o.f suoh proceeds.
(:) t~~aintenance of System. The Issuer wil]. complete the
construction of t}ie project in an economical ana efficient manner
~•~ith all practicable dispatch, and thereafter will maintain the
system in good condition and continuously operate the same in an
efficient manner and at a reasonable cost.
(N) No Free Services. The Issuer will not render or
cause to be rendered any free services of any nature by its system,
nor ~vil1 any preferential rates be established for users of the
same class; and if the Issuer shall avail itself of the facilities
or services provided by the system, or any part thereof, then file
same rates, fees or charges applicable to other customers receiv-
ing like service under similar circumstances shall be charged
to t}1e Issuer. 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
revenues 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) Failure of User to Pay for Services. Upon failure
of any user to pay for. services rendered within sixty (60) days,
the Issuer shall shut off the connection of such user and shall not
furnish him or permit him to receive from the system further ser-
vice until al]_ obligations owed by h.im to the Issuer on account
of services shall have been paid in full. This covenant shall not,
ho;•~ever, prevent the Issuer from causing any system connection to
be shut off sooner.
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(I>) nforcement of_ Collections. The Issuer will dili-
gently enforce and collect the rates, fees and other charges for
the services and facilities of the system; and will take all steps,
actions and proceedings for the enforcement and collection of
such rates, charges and fees as shall become delinquent to the
full extent permitted or authorized bar la~v; and will maintain accu-
rate reco.r.ds s~Jith respect thereof. ?111 such fees, rates, charges
~ln~~ rE?jTf?n:l:'_~~ il!~rnln pledcrecl shall, as eoll~=~etcd, }fir.' lzc~lcl to tr!ist
F. +, , ,
,.~ .. -_;l_:;~l.ic~.1 as ~~?rov~_cled to this instrument ~~nd not oti~.er~>>ise.
(':?) ~uffir.i_ency of Rates. The' Issuer covenants and
ac;r~es that it .•.;ill fi:~, establish, revise from time to time whenever
necessary and maintain always such fees, rates, rentals and other
charges for the use of the product, services and facilities of the
system which, together with the excise taxes, will always produce
cash revenues sufficient to pay, and out of such funds pay, as the
same shall become due, the principal of and interest on the prior
lien obligations and the bonds, the necessary expenses of opera-
ting and maintaining the system and all reserve, Sinking Fund or
other payments required by this instrument, and that such rates,
fees, rentals or other charges will not be reduced so as to be
insufficient to provide funds for such purposes.
(R) Compliance with Laws and Regulations. The Issuer
covenants and agrees to perform and comply with, in every respect,
the Loan Agreements which it might have with the Government or
cvitli any other governmental agency and all applicable Federal and
State Laws and regulations.
(S) Remedies. Any holder of the bonds or any coupons
appertaining thereto issued under the provisions of this instrument,
or any trustee acting for the holders of such bonds and coupons,
may either at law or in equity, by suit, action, mandamus or
other proceedings in any court of competent jurisdiction, protect
and enforce any and alI rights, including? the right to the appoint-
ment of a receiver, e:~isting under the Laws of the State of Florida,
or granted and contained in this instrument, and may enforce and
compel the performance of all duties required by this instrument
or by any applicable State or Federal statutes to be performed by
the Issuer or by any officer thereof, including the levy and collec--
-23-
t.ion of the c:ccise taxes.
nothing herein, however, shall be construed to grant to
any holder of such bonds or coupons any lien on any real property
of the Issuer.
(T} Records and l~udits. The Issuer shall keep books
an-' records of the revenues of the system and the proceeds of the
excise ta.:e_ , ~-:hich such books and records shall be };eat separate
a n,] ::?part frorl ,:~11 Other beaks, rc:cor_ds ar.d accounts of the Issuer-
~.:? il~~) :~.: ~x- c~ F ~~ bond or ?ponds or th~~ coul_`ons ~~r~~~?_i.ca~l_e th~,~e_
~_(i i_~;^_.u,~~, r~l1Y'~;Li~l?lt tO tills l_nStrLlT.rCnt ~:}lc?1]_ ~lcl~,'F' {:}1~~ ri~~ht j;Or at
.-111 reasona.rle ti~.es, inspect a]_1 records, accounts and data of
the Issuer relating thereto. /
So long as any of the bonds shall be outstanding, the
Issuer will furnish on or before ninety (90) days after the close
of eacrl fisca]_ year, to any bondholder who shall request the same
in cariting, copies of an annual audit report prepared by an indepen-
dent certified public accountant or an auditing official of the
State of Florida, covering for the preceding fiscal year, in rea-
sonable detail, the financial condition and record of operation
of the system and any other facilities the revenues of which are
plc~dc;ed to the payment of the bond:- and the collection of the
e};cise ta~:es.
(U) Connection with System. The Issuer will, to the
full extant permitted by law, require all lands, buildings, resi-
dences and structures within its corporate limits cahich can use the
facilities and services of the system to connect therewith and use
the facilities and services thereof, and to cease the use of all
other facilities. The Issuer caill not grant a franchise f_or the
operation of any competing water or sewer system until all bonds
issued hereunder, together with interest thereon, shall have been
pa.lil In full.
(V) hidelity Bond. The Issuer will require each employee
v:ho May ha~~e possession of the revenues of the system or -the proceeds
of the e:.ci.;c~ taxes to be covered by a fidelity bond written by a
responsible indemnity company in an amount fully adequate to pro-
t~_:ct the Issu:>r from loss.
-29-
~-
. ,
(ti,'} Government Approval of Extensions and financing.
Anything herein to the contrary notwithstanding, ~~~hile the Govern-
anent. is the holder of any of the bonds, the Issuer will not borro;•~
any money from arty source or enter into any contract or agreement
or incur any other liability in connection with making extensions
or ir,proveraents other than normal maintenance of the system, or
riia:ce any extensions or enlargements of the system, or permit others
to do so, witholtt or~taining the prior ~•~ritten consent of the
~:~,;.-,~rn yen+_.
(~:) Peimburse;:~ent of Zdvances and Interest Thereon.
;While the Government sha].1. be the Bolder of any of the bonds, the
Government sna_11 have the right to make advances for the payment
of insurance premiums and/or other advances which, in the opinion
of the Government, may be required to protect the Government's
security interest. In the event of any such advances, the Issuer
covenants and agrees to repay the same, together with interest
thereon at the same rate per annum as specified in the bonds, upon
demand made at any time after any :such e~;penditure by the Govern-
ment. Any such amount due the Government shall take priority over
any other payments from the Reserve hccount.
{Y) Release of Excise Taxes. At such time as the Issuer
may be able to obtain and file in the minutes of its City Council
a certificate of a certified public accountant not regularly
employed by the Issuer stating that for the immediately preceding
fiscal year the net revenues derived from the operation of the
system equaled at least one hundred forty percentum (1400) of the
combined maximum, principal and interest maturing in any one ensu-
i.r.g fiscal year on all outstanding obligations payable from the
revenues oL- the system, then upon a declaration by resolution of
the City Council the lien hereby impressed upon the excise
taxes as security for payment of the bonds and the interest thereon
shall be permanently released, and thereafter the payment of the
bonus and the interest t}rereon shall be solely secured by a lien
upon and pledge of the revenues to be derived from the operation
of the system; provided, however, the excise taxes shall not be
-30-
- ~,
r_cleased unless all payments required by this instrument to have
been made to the several accounts and Funds herein specified shall
have been made in full, and the Reserve Account shall have on
deposit therein at: least the sum of nineteen Thousand Two Hundred
Dollars 019,200) .
(7) Expiration of Existing Franchises. Tire IsG»er
covenants and agrees that if at the expiration of the said :Franchise
~zcrroement:s ~.vith T'1_oricla Power F: T..ight Company and Lake ~nnr_}:a
~~.~-`_uT•~l Gas District it shall enter intro ne-a franchise aareem~~nts
~eit;1 said cor~lpanies or any other electric power or_ n~ltur~zl qas
su-~plier, then the franchise taxes resulting from such agreements
shall be de~~osited into the Excise Taxes Fund in the same manner
as it is herein provided for the payment therein of the existing
franchise taxes; and the Issuer does further covenant and
agree that if at any time the Issuer should undertake to own and
operate a municipal electric or natural gas system, it shall
deposit into the Excise Taxes Fund six percentum (60) of the gross
revenues uerived by the Issuer from the operation of such munici-
pal electric or natural gas system.
ARTICLE IV
MISCELLANEOUS PP.OVISIONS
4.01 P~7odification or Amendment. No Material modifica-
tion or amendment of this instrument or of any instrument amendatory
hereof o.f supplemental hereto, may be mac7.e without the consent
in writing of the holders of two-thirds or more in principal amount
of•tlle bonds then outstanding; provided, however, that no modifi-
cation or amendment shall permit a change in the maturity of such
bonds or a reduction in the rate of interest thereon, or in the
amount of the principal obligation, or affect the unconditional
promise of the Issuer to charge and collect such rates, fees and
charges for the use of the product, services and facilities of the
system and to levy and co7_lect the excise taxes and apply the
same as herein provided, or reduce the number of such bonds the
t•~ritt^n consent of the holders of which are required by this
Section for such modifications or amendments, without the consent
of the holders of all such bonds.
-31-
~.
l~J
4.02 Creation of Superior Liens. The Issuer covenants
that except as herein provided it will not issue any other bonds,
certificates or obligations of any kind or nature or create or
cause or_ %ermit to be created any debt, ]_i en, pledge, assignment
or encumbrance or charge payable from or enjoying a lien upon
the revenues of the system or the excise taxes ran};ing prior and
su~~erior to the lien created by this instrument for the benefit of
tho l~on~?s heroin authorized.
4.x)3 Severability of Invalid Provisions. If am~~ one
or rror.e of tlic covenants, agr.eomerits or Irovisions of this instru-
ment shou7_d }~e held contrary to any express provision of law
o.r. contrary to the policy of e:tpress la~•r, 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 void and shall be deemed separate
from the remaining covenants, agreements or provisions of this
instrument and of the bonds issued hereunder.
4.04 Validation Authorized The Issuer's Attorney is
hereby authorized and directed to institute appropriate proceedings
in the Circuit Court for Lake County, Florida, for the validation
of said bonds and the proper officers of the Issuer are Hereby
authorized to verify on behalf of the Issuer any pleadings in such
proceedings.
4.05 Sale of Bonds. The bonds are hereby sold and
awarded to the Government.
4.06 Conflicts Repealed. All resolutions or part of
resolutions in conflict herewith are hereby repealed.
4.07 Effective Date. This instrument shall take effect
ir;~mediately upon its passage.
PASSED AND ADOPTED THIS 11th day of February, 1975
CLAUDE SP~10AK, Jr.
Mayor
ATTEST:
(^ •
Dolores W. Carroll, City Cle k -32-