R-87-575
~
.
.
,
"
~
RESOLUTION NO. 575
RESOLUTION AMENDING AND SUPPLEMENTING RESOLU-
TION NO. 475 ADOPTED BY THE CITY COUNCIL OF
THE CITY OF CLERMONT ON AUGUST 14, 1984 ENTI-
TLED: "RESOLUTION PROVIDING FOR THE ACQUISI-
TION, CONSTRUCTION AND ERECTION OF EXTENSIONS
AND IMPROVEMENTS TO THE MUNICIPAL WATER AND
SEWER SYSTEM OF THE CITY OF CLERMONT, FLORIDA;
AUTHORIZING THE ISSUANCE BY THE CITY OF NOT
EXCEEDING $885,900 PRINCIPAL AMOUNT OF WATER
AND SEWER REVENUE BONDS, SERIES 1984, TO FI-
NANCE A PART OF THE COST THEREOF; PLEDGING THE
NET REVENUES OF SAID SYSTEM, CERTAIN MUNICIPAL
EXCISE TAXES TO SECURE PAYMENT OF THE PRINCIPAL
OF AND INTEREST ON THE BONDS; PROVIDING FOR
THE RIGHTS OF THE HOLDERS OF THE BONDS; AUTHOR-
IZING ISSUANCE BY THE CITY OF NOT EXCEEDING
$885,900 PRINCIPAL AMOUNT OF 1984 WATER AND
SEWER REVENUE BOND ANTICIPATION NOTES IN ANTI-
CIPATION OF THE ISSUANCE OF SAID BONDS; PROVID-
ING FOR THE PAYMENT OF SAID NOTES; AND ENTERING
INTO CERTAIN COVENANTS AND AGREEMENTS WITH THE
HOLDERS OF SAID BONDS AND NOTES;" FOR THE PUR-
POSE OF SUPPLEMENTING THE DEFINITIONS SET OUT
IN SECTION 1.01 THEREOF; AMENDING THE MATURITY
SCHEDULE SET OUT IN SECTION 2.02 THEREOF; AMEND-
ING THE AMOUNTS SET OUT IN SECTION 3.04(B) TO
BE DEPOSITED TO THE RESERVE ACCOUNT; MAKING
CERTAIN OTHER COVENANTS AND AGREEMENTS IN CON-
NECTION WITH THE ISSUANCE OF THE BONDS; AUTHOR-
IZING A NEGOTIATED SALE OF SAID BONDS TO THE
UNITED STATES GOVERNMENT; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, on August 14, 1984, the City Council of the
City of Clermont, Florida (the "IssuerW), by Resolution No. 475
(the "Original InstrumentW), authorized the issuance of not exceed-
ing $885,900 Water and Sewer Revenue Bonds, Series 1984 (the
"Bonds"), to finance a part of the cost of acquiring, erecting
and constructing extensions and improvements to the sewer facil-
ities of the combined municipal water and sewer system of the
Issuer; and
WHEREAS, the Issuer has entered into a loan agreement
with the United States of America, acting through the Farmers
Home Administration, U.S. Department of Agriculture (the "Govern-
ment"), whereby the Government has agreed to purchase the Bonds
at the price of par and bearing interest at the rate of 7.875% per
annum, if the Issuer shall be unable to market the Bonds in the
-1-
.
.
~
private sector, and current Government policy recognizes that the
Issuer would be unable to market the Bonds in the private sector;
and the City Council of the Issuer does hereby determine that a
negotiated sale of the Bonds to the Government is in the best
interest of the citizens and inhabitants of the Issuer, it being
entirely unlikely that the Issuer would receive any bid for the
Bonds as favorable to the Issuer as the Government's terms of par
and interest at 7.875% per annum, in view of prevailing interest
rates and other market conditions at this time, and it is in the
best interest of the Issuer that it avoid the expense and delay
of advertising the same for public sale; and
WHEREAS, the maturity schedule set out in section 2.02
of the Original Instrument and the amounts set out in Section
3.04(B) to be deposited to the Reserve Account were computed on
the basis that the Bonds would bear interest at the rate of 10.5%
per annum; and it is necessary and desirable and in the best
interest of the Issuer that said maturity schedule and said
amounts to be deposited to the credit of the Reserve Account be
amended and the definitions contained in section 1.01 of the
original Instrument be supplemented to define terms used in such
amendments, all as hereinafter provided;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, THE
CITY OF CLERMONT, FLORIDA, as follows:
section 1. Amendments. The Original Instrument is
hereby amended in the following respects:
A. section 1.01 thereof is hereby amended to include
the following definitions:
-Bond Service Requirement- for any Bond Year shall mean
the amount required to pay the principal of and interest on the
Bonds during such Bond Year.
-Bond Year- shall mean the period commencing on Septem-
ber 2 of each year and ending on the succeeding September 1, and
each Bond Year shall be designated with the number of the calendar
year in which such Bond Year ends.
-Maximum Bond Service Requirement- shall mean, as of any
particular date of calculation, an amount equal to the largest
Bond Service Requirement for the then current or any future Bond
Year.
-2-
.
.
.'
B. The maturity schedule set out in Section 2.02
thereof is hereby amended to read as follows:
"Years Amounts Years Amounts
1990 $ 9,000 2004 $27,000
1991 11,000 2005 30,000
1992 11,000 2006 32,000
1993 12,000 2007 34,000
1994 13,000 2008 37,000
1995 13,000 2009 40,000
1996 15,000 2010 44,000
1997 16,000 2011 46,000
1998 18,000 2012 50,000
1999 19,000 2013 55,000
2000 20,000 2014 58,000
2001 22,000 2015 63,000
2002 23,000 2016 68,000
2003 26,000 2017 73,900"
C. Section 3.04(B) thereof is hereby amended to read
as follows:
"(B) Increased Deposits to Reserve Account. The monthly
deposits to the Reserve Account pursuant to the provisions of
section 3.04(C) (3) of the Original Instrument shall be in the
amount of Two Thousand Three Hundred Forty-Three Dollars ($2,343)
(the "Monthly Reserve Deposit Amount"), until such time as the
funds and investments in the Reserve Account shall equal the Maxi-
mum Bond Service Requirement, and monthly thereafter such amount
as shall be necessary to maintain in the Reserve Account the Maxi-
mum Bond Service Requirement but not exceeding monthly the amount
of the Monthly Reserve Deposit Amount."
Section 2. Sale of Bonds. The Bonds are hereby sold
and awarded to the Government at the price of par and bearing
interest at the rate of 7.875% per annum.
section 3. oriqinal Instrument to continue In Force.
Except as herein expressly provided, the original Instrument, as
amended by Resolution No. 553 adopted by the City Council on May
12, 1987 and all the terms and provisions thereof are and shall
remain in full force and effect.
section 4. Effective Date. This resolution shall take
effect immediately upon its passage.
-3-
'.
.'
.
.
PASSED BY
FLORIDA IN REGULAR
ATTEST:
THE CITY COUNCIL OF THE CITY OF CLERMONT,
SESSION this 8t:;¡;e;/;;¿
5r;ý
-4-
~,
.
.
..
I, Joseph Van Zile, City Clerk of the City of Clermont, Florida
do hereby certify that the above and foregoing Resolution is a
true and correct copy of Resolution No. 575 ,passed by the City
Council of the city of Clermont, Florida in Regular Session on
December~, 1987.
DS8CLWC2lA
Q-£t' ¿,tj)7
~"Clerk
-5-