R-64-031
RESOLUTIONS
N0. 31
t
N° 48
A RESOLUTIGN AUTHORIZING AN'U PROVIDTNG FOF~ THE ISSUANCE OF A WATER REVENUE
BOND FOR $50,000.00 OF THE CITY OF CL'.~RMONT, LAKE COUNTY, FLORIDA, FOR THE
PURPOSE CF DEFRAYING THr COST O~ IMPROVING T~ PRESENT WATERWORKS SYSTEM
OF SAID CITY, PRESCRIBING ALL OF THE DETAILS OF SAID BOND AND PROVDI NG
FOR TT?E CCLLECTICN, SEGREGATICN ~`NI` DISPOSTICN OF THE REVENUES OF THE
WATERWORK" ~Y`m~'r" OF SAID CITY FOR THE PURPOSE OF PAYING THE COST OF CPER-
ATIGN AND PAZN7ENANCE TN~REOF, PROVIDING AN ADEr~UATE DEPRECIATION FUND
THEREFOR, FAYTNG THL F'~~INCIPAL AND INTEREST OF SAIT` WATER REVENUE BCND,
AND T'ROVIDING FOR PAYMENT OF ENGINEERS' FEES AND COSTS IN CONNECTION WITH
SAID PROJECT.
WHEREAS, The City of Clermont, Lake County, Florida, is now and has
for many years last past been operating and maintaining, as owner, a
municipal waterworks system in and for said city; and
WHEREAS, It is deemed advisable, necessary and for the best interest
of said city and its inhabitants that improvements be made to said exist-
ing municipal waterworks system, consisting of the drilling of a well,
purchase and installation of two deep well turbine pumps, together with
the electrical work required for such installations and with all valves,
piping and connections necessary to integrate said improvements with the
existing water distribution system, and engineering costs related to
the project; and all in accordance with plans and specifications therefor
approved by the City Council of the City of Clermont and now on file in
the office oi' the Clerk for public inspection; and
WHEREAS, the total estimated costs for such improvements as prescribed
by the engineers employed for that purpose is the sum of $50,000.00; and
WHEREAS, in order to raise the funds required for the construction
of said improvements to said municipal waterworks system, it will be
necessary that the City borrow the sum of $50,000.00 and in evidence thereof
issue its Water Revenue Bond in the principal amount of $50,000.00, said
Water Revenue Bond to be payable solely and only out of the earnings to
be derived out of the operation of the waterworks system; and
~dHEREAS, under the provisions of the City of Clermont Revenue Bond
Act (Chapter 30660, Act of the Legislature of the State of Florida, 1955),
and set forth in Article 8, beginning at Section 85 of the Clermont Code,
said City is authorized to issue such Water Revenue Bond for the purpose
of paying the cost of such improvements; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COLTNCIL OF THE CITY CF
CLERMOlVT, LAKE COUNTY, FLORIDA, AS FOLLOWS:
Section 1. That the City Council has heretofore caused to be made
an estimate of the cost of constructing necessary improvements to the
existing municipal ~aaterworks system as described in the preambles of this
Resolution and all in accordance with the plans and specifications there-
for heretofore prepared and approved by this City Council and now on file
in the office of the Clerk for public inspection, and has heretofore
estimated and does hereby estimate that the total cost of said improvements
is the sum of $50,000.00.
Section 2. That to pay the cost of constructing such improvements
to the existing waterworks system, it will require the issuance of a
$50,000.00 Water Revenue Bond bearing interest at tY~e rate of Five (5%)
Percent per annum.
Section 3. That for the purpose of defraying the cost of improving
the present municipally owned waterworks system as hereinabove described
in the preambles of this Resolution, there be issued and sold a Water
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RESOLUTIONS N °_ 4 9
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Revenue Bond of said City, to be designated "Water Revenue Bond" in the
principal amount of $50,000.00, which bond shall bear date of September
15, 1964, to bear interest at the rate of Five C5%) Percent per annum,
provided; however, that principal and interest on said bond shall be
payable in equal and consecutive monthly installments of `1,500.00 each,
beginning with the 15th day of November, 1964, and continuing on the
15th day of each month thereafter until said obligation, including both
principal and interest is fully paid, and further providing that said
bond shall be redeemable as a whole or in part prior to maturity at
the option of the City of Clermont, without penalty.
Section 4.
shall be payable
Citizens Bank of
Said bond shall
and attested by
Both principal and interest of said Water Revenue
in lawful money
Clermont, in tree
be signed by the
the City Clerk.
of the United States of America
City of Clermont, Lake County,
Mayor, sealed with the corporate
Bond
at the
.Florida.
seal,
Said bond, together with interest thereon, shall be payable solely
from the revenues derived from the waterworks system of said City and
such bond shall not in any event constitute an indebtedness of the City
of Clermont, Lake County, Florida, within the meaning of any constitutional
or statutory limitation.
Section 5. That said bond shall be in substantially the following
form:
$ 50,000.00 September 15, 1964
UNITED STATE CF AMERICA
STATE OF FLORIDA COUNTY OF LAKE
CITY GF CLERMONT
~dATER REVENUE BOND
KNO`uJ ALL MEN BY THESE PRESENTS that the CITY OF CLERMONT, Lake County,
Florida, for value received, hereby promises to pay to CITIZENS BANK OF
CLERMONT, a Florida banking corporation, of Clermont, Lake County, Florida,
solely from the water fund of the City of Cle wont, as hereinafter mentioned
and not otherwise, the sum of FIFTY THOUSAND $50,000.00) rOLLARS lawful
money of the United States of America, with interest thereon from the date
hereof until paid at the rate of Five (5/) Percent per annum. Principal
and interest shall be payable in equal and consecutive monthly installments
of $1,500.00 each, with the first monthly installment to become due and
payable on November 15, 1964, and one monthly installment to become due
and payable on the 15th day of each succeeding month thereafter until
all principal and accrued interest has been paid in full. teach monthly
installment of $1,500.00 shall be first applied to accrued interest,
amortised monthly, and the balance to principal. Both principal of and
interest upon this bond. are hereby made payable at Citizens Bank of Clermont,
in the City of Clermont, Lake County, Florida.
This bond is the only one authorized for issuance by a certain Resolu-
tion adopted by the City of Clermont, on the day of 1864,
adopted pursuant to the powers granted said City of Clermont in accordance
with Act of the Legislature of the State of Florida known as "City of
Clermont Revenue Bond Act" (Chapter 30660, Acts of the Legislature of
the State of Florida, 1955) and i:~ set fort::: in Article 8 beginning at
'erection 85, of the Clermont Code, and at the option of the City, prior
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RESOLUTIONS
N0. 31
N°_ 50
to maturity, in whole or in part, may be redeemed by the City without
penalty. Advance payment shall not serve to waive the necessity of making
successive monthly payments of principal and interest as scheduled above.
This bond is payable solely from revenues derived from the waterworks
system of said City and not otherwise, and is issued under the authority
of the statutes for the purpose of paying the cost of constructing im~rove-
ments and betterments to the existing municipal waterworks system, and
t7~is bond does not constitute an indebtedness of said City within any
constitutional or statutory limitation. Said City covenants that rates
will be charged for the use and services of said waterworks system
sufficient at all times to pay the cost of operation and maintenance of
said system, to provide an adequate depreciation fund, and paying the
principal of and interest upon this bond, which are payable solely from
the revenues of said system, and to comply with all the covenants of the
Resolution under which this bond is issued
According to said Act and the Resolution adopted pursuant thereto,
authorizing the issuance of this bond, the revenues from the operation
of the municipal waterworks system shall be deposited in a separate fund
designated as the :dater Fund, which shall be used and is hereby pledged
for paying the cost of operation and maintenance of such system, providing
an adequate depreciation fund and paying the principal of and interest on
this bond that is payable by its terms only from the revenues of such
waterworks system and to maintain the account provided for in and by the
Resolution adopted authorizing the issuance of this bond.
It is hE:reb.y certified and recited that all acts, conditions and
things required to be done precedent to and in the issuance of this bond
have been done and have happened and have been performed in regular and
due form of law, and that provision has been made for depositing in said
Water Fund the revenues received. from the operation of said waterworks
system to be applied in the manner hereinabove set forth. In the event
of default by the City of its obligations hereunder, the holder of this
bond in any action to enforce it, shall be entitled to the appointment
of a Receiver of the Revenues of said waterworks system. Said revenues
are hereb~~, in the event of any default or defaults in paying said principal
or interest, assigned to the holder of this bond as security for the
payment of said indebtedness.
IN `,~iI'fNE~S WHEREOF, said City of `'lermont, Lake County, Florida, by
its Mayor and Council has caused this bond to be signed by its Mayor,
its corporate seal to be hereto affixed, and attested by the Clerk, and
this bond is executed as of the 15th day of September, A. D. 1864.
y
Mayor
Se tion 6. That upon issuance of the Water Revenue Bond herein
p ovi ed for, the entire municipal waterworks system :;f said City of
C1 ont shall be operated on a fiscal year basis commencing on the 1st
day of iVovember and ending on the last day of October of each year,
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RESOLUTIONS N °_ 51
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beginning November 1, 1964, and all of the revenues from any source what-
soever derived from the operation of the said T,aaterworks system shall be
set aside as collected and shall be deposited in a separate fund which
is hereby created and to be designated as the Water Fund of the ''ity of
"lermont which shall be used only in paying the reasonable cost of operat-
ing and maintaining said system, providing an adequate deprecation fund
and paying the principal and interest upon the Revenue Bond of said City
here authorized and outstanding which by its terms is payable from the
revenues from the waterwork system, and for the creation and establishment
of such accounts as shall fairly represent these items in the books and
records of the City of Clermont.
Section '7. That the City of Clermont, Lake County, Florida, hereby
agrees to carry insurance on the waterworks system of the kinds and in the
amounts as are usually carried on similar property, including; without
limiting the generality of the foregoing, fire, windstorm insurance,
public liability and any additional insurance covering such risks as shall
be recommended by a competent independent authority, and all moneys
received for losses under such insurance policies shall be deposited in
the ',pater Fund.
Section 8. The City of "lermont, Lake County, ~~lorida, covenants
and agrees that so long as the bond herein authorized remains unpaid.,
proper books and records and accounts will be kept by the City of Clermont,
separate and apart from all other records and accounts showing correct
and complete entries of all transactions of the waterworks system, and
that the holder of such bond or any duly authorized agent or agents of
such holder shall have the right at any and all reasonable times to inspect
the records, accounts and audit relating thereto and to inspect the
system and all property comprising the system.
Section 9. While the bond aut'orized hereunder remains outstanding
and unpaid, rates charged ~c~r serv~oes shall be sufficient at all times
to pay all costs of operation and maintnance of the waterworks system of
said city to make the payments of principal and interest on the bond
authorized hereunder and to maintain such reserve as shall~be deemed
necessary to provide for depreciation and contingencies. here shall be
charged against all users of the waterworks system such rates and amounts
for water service as shall be adequate to meet the requirements of this
Section.
Section 10. The holder of the bond herein authorized and issued
hereunder may, either in law or equity, by ~~uit, action, mandamus or other
proceedings, enforce or compell performance of all duties required by
this Resolution, including the making and collection of sufficient rates
for services, and it hereby covenants and agrees not to sell, lease,
loan, mortgage or in any manner dispose of said waterworks system in-
cluding any and all extensions and improvements that may be made thereto
(providing the covenF~nt in this Section shall not prevent the said City
from disposing of any property which in the judgment of the City "ouncil
is no longer useful or profitable in the operation of said system and
the proceeds of the sales of such property is paid into the Water Fund
herein established) until the bond herein authorized to be issued has
been paid in full, both principal and interest; and the City further
covenants and agrees with the holder of said bond to maintain in good
condition and continue to operate said waterworks system.
Section 11. That as soon as may be after this resolution becomes
effective said bond shall be executed as herein provided and be deposited.
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RESOLUTIONS N ° 5 2
No. 31
with the City Treasurer, and said 'treasurer shall deliver said bond to
Citizens Bank of Clermont, the purchaser thereof, upon receipt of the
purchase price therefor, the same being not less than par, plus accrued
interest to date of delivery thereof.
Section 12. Provisions of this Resolution shall constitute a
contract between the City and the holder of the bond herein authorized
to be issued until such time as the principal and interest upon said
bond shall be paid in full.
Section 13. If any section, paragraph clause or provision of this
Resolution: shall be held invalid, the invalidity of such section, p:~ra-
graph, caluse or provision shall not affect any of the other provisions
of this Resolution.
Section 14. `j'he proceeds of the bond herein authorized shall be
deposited or credited to a construction fund to be applied in carrying
out the construction of improvements, betterments and additions herein
provided for in accordance with the plans and specifications therefor
heretofore approved by this City council and now on file with the office
of the Clerk for public inspection.
Section 15. All Ordinances, resolutions or orders, or parts thereof,
in conflict with the provisions of this Resolution are hereby delcared
inapplicable.
Section 16. This Resolution shall take effect on the September
15th following its adoption.
THIS RESOLUTION ADOPTED ON TAE '7th day of July, 1964.
yo of the i of lermont,
ake County, Florida