Fort Walton Beach Ordinance — 402--Water Revenue Certificates 1964 — reading text

Replacement Fund an amount equal to 6% of the par value of all outstanding obligations payable from the revenues of the system. Money in the Renewal and Replacement Fund shall be used to pay principal of or interest on certificates falling due at any time at which there are not sufficient funds in the Certificate Fund and as to which there would be a default if money in the Renewal and Replacement Fund were not so used. Money in the Renewal and Replacement Fund shall also be used upon order of the City Council to pay the cost of making major repairs and replace- ments to the system, the cost of which is not properly payable as a maintenance and operation expense. To the extent that the amount of money in said Renewal and Replacement Fund is in excess of an amount equal to 6% of the par value of all outstanding obligations payable from the revenues of the system, such excess amount shall be used exclusively for paying the cost of making improvements and extensions to the system. If at any time it shall become necessary to use money in the Renewal and Replacement Fund for any of such purposes, the amount so used shall be restored to said fund from the first revenues of the system thereafter becoming available and not required to be used for maintenance and operation or to be paid into the Certificate Fund as above provided. Money in the Renewal and Replacement Fund and in the reserve portion of the Certificate Fund may at the request of the city be invested in direct obligations of, or unconditionally guaranteed by, the United States of America, having a maturity not more than ten years from the date of the making of the investment, which obligations shall be held by the bank in which the fund is on deposit, as a trust funda for the benefit of the certificate holders. Whenever money in the fund which has been so invested is required for the purposes for -1h- which the fund is created, the city shall require the bank to sell at prevailing market prices a sufficient amount of such obligations to produce the sum necessary to be paid from the fund. Such requirement Shall be evidenced by written order to be signed by the Mayor and directed to the bank. The Waterworks Fund shall be kept on deposit in Southern Natinnal Bank, Fort Walton Beach, Florida, the City Depository, separate and apart from all other city funds and shall be secured in the manner required by the laws of Florida for the security of city funds. The Certificate Fund and the Renewal and Replacement Fund shall be paid to and kept on deposit in the paying agent bank as above provided and shall be held by such bank as a trust fund for the benefit of the holders of the certificates, the beneficial interest in which shall be regarded as existing in such holders. The money in the Certificate Fund, except to the extent that money in the reserve portion thereof is invested as above provided, shall be continuously secured by @ pledge of direct obligations of the United States of America having an aggregate market value, exclusive of accrued interest, at all times at least equal to the balance on deposit in such fund. All revenues of the system remaining in each fiscal year after all payments hereinabove required to be made from such revenues in such fiscal year (including such proportionately increased payments into the Certificate Fund and into the Renewal and Replacement Fund as may be necessary by reason of the issuance of parity certificates in the future under the provisions of Section 7 hereof) have been made and after all deficiencies existing in such payments in prior fiscal years have been remedied, may be used either for retiring in advance of maturity certificates issued hereunder or certificates hereafter issued on a parity therewith under the provisions of Section 7 hereof, or may be used by the city for the extension, improvement, operation, maintenance, repair and betterment of the system, or for any other lawful purpose. Whenever a surplus to the amount of $10,000 -15- is available and is to be so used for the retirement of certificates the city shall request tenders of certificates for purchase, giving such request whatever reasonable publicity it shall consider desireble and shall accept the best bids or tenders submitted in amount suf- ficient to exhaust the funds available, but no bid or tender shall be accepted if the price required to be paid for the certificates tendered is greater than the price at which certificates can currently be called for redemption, and if no certificates are tendered within such price limitation the available funds shall be used to call certificates for redemption, or if certificates are not then redeem- able, shall be reserved for such purpose. Where certificates are so called for redemption the city shall give the required notice and shall require the depository to transfer to the paying agent bank a sum sufficient to pay principal of and interest and redemption premiums on the certificates so called for redemption. All certificates so pur- chased or redeemed shall be cancelled and shall not be subject to reissuence. If certificates are hereafter issued payable from the revenues of the system, upon an equality with the certificates herein authorized, such additional certificates shall be subject to purchase or redemption as provided in this paragraph, but in such event such certificates shall share in the funds available only in the proportion borne by the amount of such additional certificates then outstanding to the amount of the certificates herein authorized then outstanding. No certificates may be retired as in this paragraph provided at any time at which any of the certificates may be in default. Section 6. That all of the covenants and agreements contained in Sections 5, 6, 7 and 8 of the aforesaid ordinances of June 19, 1956, June 2, 1959, July 12, 1960 and March 28, 1962 are incorporated herein by reference and are pledged to and continued in full force and effect for the benefit of the holders from time to time of the certificates herein authorized in like manner as they are now effective for the benefit of the outstanding certificates and said covenants and agree- ments shall be continued in full force and effect until all of the -16- outstanding certificates and the certificates herein authorized shall have been retired. Section 7. That the certificates shall enjoy complete parity of lien on the revenues of the system despite the fact that any of the certificates may be delivered at an earlier date than any other of the certificates. The city covenants and agrees that it will issue no other certificates or obligations of any kind or nature payable from or enjoying a lien on the revenues of the system either on a parity with or having priority over the lien on such revenues enjoyed by the certificates herein authorized. The provisions of this section are subject to the following exceptions: 1. If prior to the payment of the certificates herein authorized it shall be found desirable to refund said certificates under the provisions of any law then available, said certificates or any part thereof may be refunded, with the consent of the holders thereof (unless said certificates have matured or have been properly called for redemption), and the refunding certificates so issued shall enjoy complete equality of lien with the portion of said certificates which is not refunded, if any there be, and the refunding certificates shall continue to enjoy whatever priority of lien over subsequent issues may have been enjoyed by the certificates refunded, provided, however, that if only a portion of the certificates outstanding is so refunded and if such certificates are refunded in such manner that the interest rate of the refunding certificates is increased or that any of the refunding certificates mature at a date earlier than the maturity date of any of the certificates not refunded, then such certificates may not be refunded without the consent of the holders of the unrefunded portion of the certificates issued hereunder. 2. Additional certificates. may also be issued at one time or from time to time on a@ parity with the certificates authorized herein, but only if all of the following conditions are met: (a) The net revenues of the system for each of the two fiscal -17- years immediately preceding the issuance of the additional certificates must have been equal to one and one-half (1 1/2) times the highest combined interest and principal requirements for any succeeding twelve months’ period on all certificates then outstanding and the certificates so proposed to be issued. "Net revenues” for the pur- pose of this paragraph shall be understood to refer to the gross revenues of the system remaining after there have been deducted there- from the expenses of operating, repairing and maintaining the system as such expenses are defined in Section 5 above. (db) All payments hereinabove required to be made into the Certificate Fund must be current, there must be in the reserve portion thereof the full amount hereinabove required to be accumulated therein and there must be in the Renewal and Replacement Fund not less than an amount equal to 6% of the par value of all outstanding obli- gations payable from the revenues of the system. (c) The additional certificates must be payable as to principal on September 1 of each year in which principal falls due, and payable as to interest on March 1 and September 1 of each year. Section 8. That so far as it legally may, the city covenants and agrees for the protection and security of the certificates herein authorized and the holders thereof from time to time that it will not grant a franchise for the operation of any competing water system in the city until all certificates issued pursuant hereto shall have been retired. Section 9. That the certificates herein authorized shall be At Advertised Public Sale Sold se—the-6it7-& i shoebietetepetes and the proceeds of the certificates shall be escrowed in a "Construction Fund Account" in the Bank of Fort Walton, to be paid out solely for the purpose of paying the cost of making the improvements and extensiorm in accordance with the plans and specifications heretofore approved and adopted by the city and for the making of which such certificates have been authorized. The Mayor and City Clerk are authorized to make such arrangements for the escrowing of such funds as they may consider ~18- proper, which arrangements shall be subject to the written approval of the original purchasers of the certificates. Section 10. That Wa/ter J. Sm il , a8 attorney for Fort Walton Beach, is hereby authorized and directed to take appropriate proceedings in the Circuit Court of the First Judicial Circuit of Florida, and in and for Okaloosa County, for the valid- ation of said certificates, and the Mayor and City Clerk are authorized to sign any pleadings in such proceedings for and in behalf of the City Council of Fort Walton Beach. Section 11. That if any section, paragraph, clause or provision of this ordinance shall be held to be invalid or unenforce- able for any reason, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this ordinance. Section 12. That by reason of the urgent necessity for the construction of the improvements and extensions to the water system which are to be paid for with the proceeds of the certificates herein authorized, there is an urgent public need for the preser- vation of the public peace, health, safety and property requiring this ordinance to take immediate effect and it is, therefore, pro- vided that this ordinance shall be in full force and effect immediately upon its adoption. Adopted and approved January 2/ » 1964. ws Attest: VA City Clerk (Other business not pertinent to the above appears in the minutes of the meeting.) Pursuant to motion duly made and