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HomeMy WebLinkAbout01-24-1929 Regular Meeting /- ~ I Minutes Regular Adjourned ~eeting Clermont City Council held at the City Hall January 24, 1929 1ieeting calledtto order at ~ight u'Clock by P~esident Maves Councilmen present, Simms, Mills, Tabor & French, Ma~or Davenport and Attorney Westbrook. After somedliscussion regarding the Bonds which fell due January First it was moved, seconded and carried that the following letter be sent to each of the bondholders; To the holders of City pf Clermont, Florida, Improvement Bonds. "'--- ~-, . "It is with regret that the City of Clermont reports that it was unalhle to meet the obligations whoch matured on January 1, 1929. We feel that we should franltly state the matter to the bondholders. During the period of the real estate "boom" in Florida,the City of Clermont, in common with many other municipalities, caused a great 'l' many improve~ents to be constructed. he cost of the improvements was as assessed against the property, and bonds issued to pay for the con- struction. We have outstanding $813,000.00 in street improvement bonds, issued in 1925 and 1926, and all maturing in annual installments of one- tenth of the principal each year, and all bearin~ six per cent interestJ thus there is an annual charge Q~ approx~~ately $120,000.00 each year. With the deflation in real estate values, we have seen. our 1926 assessment roll of over $4,000,000.00 decrease to a present estimated value of all propertY in the City of $1.000,000.00. The property own9rs are unable to pay the assessments, and in consequence the City is unable to pay thA bonds. Pressue8 on the property owners results simply in transferring oVlmership of the lots improved to the City, and does"not relieve the situation. We recognise the obligations, and pledge our earnest endeavors to pay all obligations of the Cit~. We cannot pay them as they mature but if given sufficient time, we will pay them all. with interest, and no one will lose a dollar. Collections have been pushed as far as is practical, and we have been abl~ to pay all interest , and will continue to do so. The Leg- islature of the State of Florida meets in April 1929, and we will ask authority from the Legislature to issue bonds over a longer period of time, which we will offer the present 110lders of Improvement BondS, in ezchabge for the bonds maturing. We cannot sell the new bonds, and all we can do 1s to exchange them. The new bonds proposed will bear intwrenf at the same rate, payable semi-annually, and will commence maturing five years after date, and will all mature within twenty-five years from date. All will be callablo at ,a price to be fixed, so that should conditions improve. we will retire them sooner. We fully realize the fact that the bondholders may sue the City and obtain judgments; but we are likewise conversant with local con- ditions, and we know such a course would not realize for the bondholders anything like the par value of their bonds, and over a much longer period ,of time. We have had the advice and oonsultation of many financial experts, and are convinced that the only practic~l method is as outlined herein. It is not a question of avoiding the payment of any of the obligations-- we would gladly pay them if we could--but simply o~ inability to pay them at the present time, If given the intelligent co-operation of the bondholders, every bond ';rill be eventually Paid at par. Write to the City Clerk, Clermont, Florida, stateing the number of bonds you hold, their nu~bers, dates of issuance and dates of maturity. When the new bonds are ready, you will be advised without further correspondence, as to the method of exchanging, to~ will also be advise of any L"'!1provement in conditions, or any other matters which woulcl be "cto your intereot. \ -""---_/ J~nuary 25, 10Gv. CITY COTJNCIL City of Cl€l~ont,Florida. Address all correspondence to City Clerk, Clermont, Fla. In order that resid.ents might nave the use ot water to keep up their lawns w1thoutgotng to theexpanS8 ofpa~ the minimum each month, when l:IaII,tea are:not 4C~W, '1:Iae clerk was authorized to deduct the I.at _i... reae_ '~.,. .~ from the next meter reading atter -'retum1rraemi __'-r"'V ~.. a the end of any mOBth :ii~~j r.linutes January 24 J She~t g002 fuoved, seconded and carried that the Uity Attorney be instructed to all delinquent paving assessments by foreclosure if necessary in ~rojects No. 1 & 2, and where OTIners of lots are delinquent in projects one and two own lots in any other project that aDe delinquent to include all delinquencies in the same euito ~ .., Moved, seconded and carried that lhr. C,\1o Roe be eiven the applications for the bonds of the bond trusteeso ~here being no further business the meeting adjourned to meet at theccall of the presidento A-8dI({'v~ President 41d~k. /1 AAA // /' ~~ r.t .v//'I_ ~ ~ ~/-b~ f~~ 177;9 ~ ,.,