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HomeMy WebLinkAboutCHAPTER #122Chapter No. AN ORDINANCE AUTHORIZING THE ISSUANCE OF $188,000 REFUNDING BONDS OF TIlE CITY OF SEBASTIAN, FLORIDA, FOR THE PURPOSE OF REFUNDING A LIKE AMOUNT OF VALID OUT- STANDING BONDS OF SAID CITY AND PROVIDING FOR THE ?,,tANNER OF ISSUANCE AND PAYMENT THEME OF. FLORIDA: termined: BE IT ORDAINED BY THE CiTY COUNCIL OF THE CITY OF SEBASTIAN, Section 1. That the City Council has ascertained and de- A. That there have heretofore been duly authorized and is- sued bonds of said City, dated July l, 1939 and known as "City of Sebastian, Florida, Refunding Bonds, Issue of 1939," which bonds were validated by a decree of the Circuit Court of Indian River County, rendered June 22, 1940, and that 988,000.00 of said bonds are now outstanding. B. That all of said outstanding bonds mature july l, 1969, but are redeemable at the City,s option on any interest payment date prior to maturity at par plus accrued interest, and that the rate of interest, payable semi-annually, on said bonds is now three per cent. (3%) per annum, and will increase to four per cent. (4%) on July l, 1954 and to five per cent. (~%) on July l, 1959. C. That all of the outstanding bonds above described con- stitute valid subsisting obligations of the City of Sebastian and re- present an extension and renewal of bonded indebtedness incurred prior to November 6, 1934, for the payment of which the faith and credit of the City and an ad valorem tax without limitation of rate or amount are pledged. D. That it will be to the advantage of tho City and its taxpayers to refund $188,000 of said outstanding bonds by the issu- ance of refunding bonds bearing a lower average rate of interest than the outstanding bonds, and extending the time of payment thereof. Section 2. That for the purpose of refunding as of Jan- uary l, 1950, the bonded indebtedness described in Section i hereof, there be issued, pursuant to the General i.{efunding Act of 1931, being Chapter 132, Florida Statutes, 1941, bonds of the City of Sebastian in thee amount of $188,000, to be designated "City of Sebastian, Flo~- ida, Refunding Bonds, Issue of 19~0." Said refunding bonds shall be dated January l, 19~0, num- bered i to 188, inclusive, shall be in the denomtn~.tion of $.1,000. each, and subject to the right of prior redemption wtthrespect to the bonds numbered ~9 to 188, i~clusive, maturing on January l, 1980, as hereinafter provided, shall mature in numerical order on January I in the years and amounts as follows: $1,000 in 1955 to 1960, inclusive; ~2,000 in 19~l to 1967, inclusive; $3,000 in 1968 to 1977, inclusive; $4,000 "in 1978 and 1979, and $130,000 in 1980. ~ The bonds maturing in the year 1980, being bonds numbered 59 to 188, inclusive, shall be redeemable at the option of the City on any interest payment date prior to maturity at par plus accrued interest. In the event that the City determines to exercise the right to redeem said bonds, such right shall, be exercised in the following manner: The bonds shall be drawn by lot by the governing body of the City, from all of the redeemable bonds then outstanding, unless all are to be redeemed. Notice of redemption specifying the bonds to be redeemed shall be filed at the place ~here the principal and in- terest of the refunding bonds are payable at least thirty days prior to the date fixed for redemption, and shall be published once not less than thirty days prior to said date in a newspaper having ge/n- eral circulation in indian River County, Florida, and in a financial journal published in the City of New York. Section 3. That bonds numbered I to ~8, inclusive, shall bear interest, payable semi-annually on January I and July l, at three per cent (3%) per annum to July l, 1954 and thereafter at two and one-half per cent (2 1/2%) per annu~. The interest payable on e~..ch of said bonds on July l, 1950 shall be evidenced by one coupon, and thereafter to July l, 19~4 such interest shall be evidenced by two sets of coupons, one set at the r~te of two and one-hslf per cent (2 1/2%) per s. nnu~, the other set at the rs..te of one-half of one per cent (1/2%) per annum. All coupons on said bonds for interest payable subsequent to July l, 19~4 shall, be at the rate of two and one-half per cent (2 1/2%) per annum. That bonds numbered 59 to 179, inclusive, shall bear in- terest at three per cent (3%) ti July l, 19~0, such interest to be evidenced by one coupon, and thereafter to July l, 19~4 s~id bonds shall be~r interest at three and one-fourth per cent (3 1/4%) which rate of interest shall be evidenced by two sets of coupons, one set St the rate of two and three-fourths per cent (2 3/4%) per annum~ and the other set at one-half of one per cent (1/2%). ~ll coupons on said bonds for interest payable subsequent to July l, 19 4 shall be at the rate of two and three-fourths per cent (2 3/4%) per 8nnum, That bonds numbered 180 to 188, inclusive, shall bear interest at three per cent (~%) per annum to July l, 19~0, such interest to be evidenced by one coupon, and thereafter said bonds Shall be~r interest at two and three-fourths per cent (2 ~/4%) evidenced by semi-~unual coupons of the same amount. That all of the interest coupons at the rate of one-half per cent (1/2%) per annum maturing during the period of time from July l, 19~0 to July l, 19~4 on the bonds to which they s~re attached as above provided, may be deta.ched from said bonds and from other coupons to which they may be appended, and z'~egotiated as separate and independent negotiable instruments with like force and effect as any of the other coupons. Said refunding bonds shall be signed by the ~.ayor, counter- signed by the President of the City Council, and attested by the. City Clerk, and shall h~,ve the seal of the City affixed thereto. All -3- interest coupons attached to said bonds shall bear the fac simile signatures of said officers. Section 4. Said refunding bonds sh~ll be in substan- tia. lly the following form: -4- Bond No. UNITED STATES OF AMERICA STATE OF FLORIDA COUNTY OF INDIAN RIVER $1,000 CITY OF SEBASTIAN REFUNDING BOND ISSUE OF 1950 The City of Sebastian, in the County of Indian River, State of Florida, hereby acknowledges itself to be indebted, and, for value received, hereby promises to pay to the bearer the principal sum of ONE THOUSAND DOLLARS on the first day of January, 19 , and to pay interest on said sum, as hereinafter specified, from the date hereof, payable semi-annually on the first day of January and the first day of July of each year, such interest to the maturity date of this bond to be paid upon presentation and surrender of the attached coupons as they severally become due. Both principal and interest of this bond are payable in lawful money of the United States of America at the Guaranty Trust Company, in the City and State of New York; and for the prompt pay- ment of this bond, and interest thereon, as the same become due, the full faith, credit and taxing power of said City of Sebastian, Florida, are hereby irrevocably pledged to the same extent and with like force and effect as the same were pledged for payment of the indebtedness refunded hereby. In the event of a default in the payment of interest on the bonds of the issue of which this bond is one, the governing authority of the City shall be accorded a period of six (6) months after its happening in which to correct the said default, and upon failure, in- ability or refusal of said governing authority to do so within that period, and upon the declaration in writing filed with said City through its City Clerk by the holders of at least forty per cent. (40%) in principal amount of the Refunding Bonds of the issue of which this bond is one outstanding upon the happening of such default said Refunding Bonds shall, at the option of the respective holders, revert to and thereafter bear the inter,st rate borne by the original bonded indebtedness represented by the outstanding bond in exchange for which said Refunding Bond was issued, but such reversion shall be effective only from the date to w~ich interest had been paid on said Refunding Bonds prior to the date of the filing of the declaration of intention to exercise such option, and said City agrees that if the right to such higher interest rate accrues, as herein provided, at the option of the holders of said bonds the higher rate of inter- est will be evidenced either by a substitution of new bonds and cou- pons bearing such higher interest, or by a substitution, in place of -5- the existing coupons, of new coupons bearing such higher rate, such new coupons to be attached to the then existing bonds; provided that as to any of said Refunding Bonds the holders of which did not file declarations as a part of the initial and required percentage, such reversion shall only be effective as of the last semi-annual interest payment date prior to the filing of such declaration. The bonds of this issue which mature in the year 1980, being bonds numbered 59 to 188, inclusive, are redeemable at the option of the City, as a whole or in part, on any interest payment date prior to maturity at par plus accrued interest. In the event of t~e ex- ercise of such right to call said redeemable bonds, not less than thirty days notice of much redemption will be given by filing and publication as provided by the ordinance of the City Council author- izing the issuance of the issue of bonds of which this bond is one, and said bonds, when so called, shall cease to bear interest on such redemption date, provided that adequate funds for their redemption shall have been provided and set aside by said City for such purpose. This bond is one of an issue of Refunding Bonds of like date, limited in aggregate amount to $188,000. IT IS HEREBY CERTIFIED AND RECITED that this bond is issued under the authority of and in full compliance with the General Re- funding Act of 1931, being Chapter 132, Florida Statutes, 1941, and pursuant to an ordinance duly adopted by the City Council of the City of Sebastian, Florida, and is issued in exchange for and as a con- tinuation, extension, merger and renewal of a like amount of valid subsisting bonded indebtedness of said City originally incurred prior to November 6, 1934, and outstanding at the date of the passage of said ordinance, and for the purpose of refunding said indebtedness; and that all acts, conditions and things required to happen, exist and be performed, precedent to and in the issuance of this bond, have happened, exist and have been performed in due time, form and manner as required by law, and that neither the indebtedness which is re- funded, nor the issue of bonds of which this bond is one, together with all other indebtedness of the said City, exceeds any limitation prescribed by the Constitution or statutes of the State of Florida, and that, before the issuance of the issue of bonds of which this bond is one, provision has been made for the levy and collection of a direct annual tax upon all property in the City of Sebastian, ex- cept only such property as would be exempt from taxation under the provisions of the Constitution and laws of Florida which were in force and effect at the time of the creation of the indebtedness re- funded hereby, which tax shall be in ~mounts sufficient to pay the interest upon the issue of Refunding Bonds of which this bond is one as the same shall become due and to create a sinking fund for pay- ment of the principal thereof at maturity. The right is reserved to levy such taxes as may lawfully be imposed for the payment of this bond upon all property within the boundaries of the City am they existed at the time of incurring the indebtedness hereby refunded, which is not now within the existing territorial limits of the City'. All rights and remedies which were available for the support and enforcement of the bonded indebtedness refunded by this bond shall be available for the support and enforcement of this bond. IN WITNESS WHEREOF the City of Sebastian, in the County of Indian River, Florida, has caused this bond to be signed by its Mayor, countersigned by the President of the City Council and attested by the City Clerk, and has caused the corporate seal of said City to be affixed hereto, and the interest coupons hereto attached to be ex- -6- ecuted with the fac simile signatures of the said officers, all as of the first day of January, 1950. Seal Attest: ~ ~ City Clerk Mayor Countersigned: President of the City Council (FORM OF COUPON FOR SEMI-ANNUAL INTEREST PAYMENTS) NO. $ On the first day of , 19 , the City of Sebastian, in the County of Indian River, State of Florida, will pay to the bearer at the Guaranty Trust Company in the City of New York, the sum of dollars being the interest then due on its Refunding Bond, Issue of 1950, dated January l, 1950, No. Mayor Countersigned: President of City Council (FORM FOR VALIDATION CERTIFICATE) Validated and confirmed by decree of the Circuit Court of the Ninth Judicial Circuit of Florida, in and for indian River County, rendered on the day of , 1950. Clerk of the Circuit Court of Indian River County, Florida In the coupons on all bonds maturing in 1980 the follow- ing words shall be inserted after the number of the bond: "unless said bond shall have theretofore been called for redemption." -7- in the blank space following the first paragraph of the foregoing bond form there shall be inserted a paragraph which shall re~d as follows in bonds numbered 1 to 58, inclusive: "Interest on said bond is payable at the rate of three per centum (3%) per annum from the date hereof to July l, 1954, and thereafter at the rste of two and one-half per centum (2 1/2%) until paid, such interest to be evidenced by interest coupons as follows: one coupon for the interest payable July l, 1950, and thereafter by one set of coupons for interest at the rate of two and one- half per centum (2 1/2%) per annum, payable semi-annually until maturity of this bond, and one set of coupons for in- terest at the rate of one-half of one per centum (1/2%) per annum, payable semi-annum ly to July l, 1954. The latter set of coupons may be detached from said bond and from other coupons to which they may be appended, and negotiated as separate and independent negotiable instruments." In bonds numbered 59 to 179, inclusive, said paragraph shall read as follows: "Interest on said bond is payable at the r ate of three per centum (3%) per annum to July l, 1950, there- after at the rate of three and one-quarter per centum (3 1/4%) per annum to July l, 1954, and thereafter at the rate of two and three-quarters per centum (2 3/4%) until paid, such interest to be evidenced by interest coupons as follows: one coupon for the interest payable July l, 1950, and thereafter by one set of coupons for interest aS the rate of two and three-quarters per centum (2 3/4%) per annum, payable semi-annually until maturity of this bond, and one set of coupons for interest at the rate of one-half of one per centum (1/2%) per ~nnum, payable semi-annually to July l, 1954. The latter set of coupons may be detached from said bond and from other coupons to which they may be appended, and negotiated as separate and independent negotiable in- str~nnents." In bonds numbered 180 to 188, inclusive, said paragraph shall res_d as follows: "Interest on this bond is payable at the rate of three per centum (3%) to July l, 1950, and thereafter at the rate of two and three-quarters per centum (2 3/4%) per annum, payable semi-annually." -8- Section ~. That for the payment of the principal and interest of all of the refunding bonds which may be issued pur- suant to this ordinance, the faith~ credit and taxing power of the City of Sebastian, Florida, are hereby irrevocably pledged to the same extent and with like force and effect as the same were pledged for the payment of the indebtedness refunded by said bonds, and the City Council of said City hereby covenants and agrees with the hol- d~rs of said refunding bonds that the City will make prompt payment of the same when due. Section 6~ That for the purpose of adequately provid- ing for the payment of the interest on the refunding bonds herein authorized to be issued and for the creation of a sinking fund for the retirement of said refunding bonds, the City of Sebastian here- by agrees with the holders of said refunding bonds that for its fiscal year 19~0 and for each and every subsequent fisc~.l year until all principal and interest of the refunding bonds have been paid or retired, it will levy ad valorem taxes designed to be sufficient to raise a su~ at least equal to the interest due and to become due in such fiscal year on the assumption that fifty per centum of the amount of taxes levied will be collected in such fiscal year. If at the tim. e for making the tax levy for any fiscal year the collections for the preceding year under the levy made for such preceding year (not including any estimate of future collec- tions) shall be less than the amount'of interest accruing during such preceding year, the levy then to be made shall be at Such rate as will be designed to yield twice the amount of interest ac- cruing during the fiscal year for which it is made in the e vent the percentage thereof collected shall not exceed the percentage actually collected for such preceding fiscal year. That is to say, the tax levy for each year for the purpose of providing for the pay- ment of the principal and interest of said bonds shall be at such rate upon the assessed valu~.tion of tax~.ble property in said City as shall produce not less than twice the amount of interest accru- -9- lng during such year; and if for any year the actual collection was not equal to the amount of interest so accruing, the rate of levy for the next year shall be in the ratio that twice the total interest bears to the amount of taxes actually collected for the preceding year. Such taxes shall be levied and computed upon the extended and fully equalized valuation of all property subject to taxation within the City except only such property as Would be ex- empt from taxation for the payment of the principal aud interest of the bonded indebtedness refunded by the bonds authorized by thiB ordinance under the provisions of the Constitution and statutes in force at the time of the incurring of said indebtedness. All taxes levied for the purpose of paying the principal and interest of the refunding bonds herein authorized shall be payable only in lawful money of the United States of America. That any ~nd all special assessments applicable to the pay- ment of any of the outst~.nding bonded indebtedness hereby authorized to be refunded which may be collected and become available for the payment of refunding bonds issued under this ordinance shall, sub- Ject to prior liens thereon, be placed in the interest End sinking fund account for such refunding bonds and shall be applied only to the payment of the interest and principal thereof. Section 7. That all of the refunding bonds herein authorized to be issued which shall at any time be outstanding are hereby declared to have the s~e security and sources of pay- ment as the indebtedness refunded thereby, and s~fd refunding bonds shall constitute a continuation, extension, mergor and renewal of the indebtedness refunded, and only such property ~s was exempt f~om taxation under the laws in force at the time the original in- debtedness was incurred shall be exempt from t~xation to pay the interest upon and principal of said refunding bonds. The City reserves the right to levy such t~xes as may lawfully be imposed -10- for the payment of such refunding bonds upon all property within the boundaries of the City as they existed at the time of the issuance ef the bonds refunded, which is not within the existing territorial limits of the City. All rights and remedies which were available for the support and enforcement of the bonded indebtedness refunded by the bonds authorized by this ordinance shall be available for the support and enforcement of said refunding bonds. Section 8. That in the event of a default in the payment of the interest on the bonds authorized by this ordinance, the City Council shall be allowed a period of six months after the happening of such default in which to correct the same, and upon failure, in- ability or refusal to do so within that period and upon the declara- tion in writing filed with the City through its City Clerk by the holders of at least forty per centum in principal amount of the re- funding bonds outstanding upon the happening of such default, the said refunding bonds shall at the option of the respective holders revert to and thereafter bear the interest rate borne by the orig- inal bonded indebtedness represented by the outstanding bonds in exchange for which s~id refunding bonds were issued, but such rever- sion shall be effective only from the date to which interest had been paid on said refunding bonds prior to the date of the filing of the declaration of intention to exercise such option, and the City hereby agrees that if the right to such higher rate of inter- est accrues, as herein provided, at the option of the holders of such bonds the higher rate of interest will be evidenced either by a substitution of new bonds and coupons bearing such higher inter- est or by a substitution in the place of the existing coupons of new coupons evidencing such higher rate, such new coupons to be at- tached to the then existing bonds; provided that as to any and all said refunding bonds the holders of which did not file declarations as a part of the initial and required procedure such reversion shall only be effective as of the last semi-annual interest payment date -ll- prior to the filing of such declarations. Section 9. That the City Attorney be and he hereby is authorized and directed to institute a?propriate proceedings in the Circuit Court of the Ninth Judicial Circuit of Florida in and for Indian River County for the validation of said refunding bonds, and the Nayor is hereby authorized to verify any pleadings in such proceedings. Section 10. That after said bonds have been validated they shall be executed as hereinbefore provided and shall be de- posited with a bank or trust company to be hereafter designated by the City Council with instructions to exchange them for the bonds described in Section i hereof, and authorized to be refunded, on the basis of par for par and to cancel all outstanding bonds and coupons received in exchange for the refunding bonds and return them to the City Clerk with a report indicating the p~.rticular refunding bonds delivered in exchange therefor. Section ll. That if any clause, section or provision of this ordinance or of the refunding bonds hereby authorized be declared unenforcible by any court of final jurisdiction, such declaration shall not affect or invalidate the remainder thereof, and, if any of the refunding bonds hereby authorized be adjudged illegal or unenforcible, the holders thereof shall be entitled to be subrogated to the rights of the holders of the bonds provided by this ordinance to be refunded, and as such enforce their claims for payment. Section 12. This ordinance shall take effect immediately upon its passage. -12- I hereby certify that the foregoing Ordinance was duly passed by the City Council of the City of Sebastian on the 2nd day of May, 1950. To the Mayor of the City of Sebastian, Florida: I hereby certify that the foregoing Ordinance was duly passed by the City Council on the 2nd day of May, 195o. City Clerk The foregoing ordinance ap proved by me this 2nd day of Nay, 1950. Mayor.