62-GRESOLUTION NO. 62-G,
A RESOLUTION SUPPLEMENTING A RESOLUTION
E~Y~ITLED: "A RESOLUTION AUTHORIZING THE
CONSTRUCTION AND ACQUISITION OF ADDITIONS,
EXTENSIONS AND IMPROVEMENTS TO THE WATER
SYSTEM OF THE CITY OF BOYNTON BEACH,
FLORIDA; AUTHORIZING THE ISSUANCE OF
$1,370,000 WATER REVENUE BONDS, SERIES
1960, TO FINANCE THE COST OF SUCH ADDITIONS,
EXTENSIONS, AND IMPROVEMENTS; PLEDGING THE
REVENUES OF SAID WATER SYSTEM TO THE PAY-
MENT OF SUCH WATER REVENUE BONDS, SERIES
1960, AND PROVIDING FOR THE RIGHTS AND
REMEDIES OF THE HOLDERS THEREOF", AS AMEND-
ED; PROVIDING FOR THE COMBINING OF THE WATER
SYSTEM AND SEWER SYSTEM INT0 ONE COMBINED
WATER AND SEWER SYSTEM; AUTHORIZING THE CON-
STRUCTION OR ACQUISITION OF ADDITIONS, EX-
TENSIONS AND IMPROVEMENTS TO THE SEWER SYSTEM
OF SAID COMBINED WATER AND SEWER SYSTEM AND
THE REFUNDING OR REFINANCING OF CERTAIN OUT-
STANDING SEWER SYSTF24 OBLIGATIONS, AND
AUTHORIZING THE ISSUANCE OF $1,750,000 WATER
AND SEWER REVENUE BONDS, ISSUE OF 1961,
SERIES A.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BOYNTON
BEACH, FLORIDA:
ARTICLE I
STATUTORY AUTHORITY, FINDINGS AND DEFINITIONS
Section 1.01. AUTHORITY OF THIS RESOLUTION. This resolu-
tion is adopted pursuant to the Charter of the City of Boynton Beach,
constituting Chapter 24398, Laws of Florida, Acts of 1947, as amended
and supplemented, and other applicable provisions of law, and a
resolution entitled: "A RESOLUTION AUTHORIZING THE CONSTRUCTION AND
ACQUISITION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE WATER
SYSTEM OF THE CITY OF BOYNTON BEACH, FLORIDA; AUTHORIZING THE ISSUANCE
OF $1,370,000 WATER REVENUE BONDS, SERIES 1960, TO FINANCE THE COST
OF SUCH ADDITIONS, EXTENSIONS, AND IMPROVEMENTS; PLEDGING THE REVENUES
OF SAID WATER SYSTEM TO THE PAYMENT OF SUCH WATER REVENUE BONDS, SERIES
1960, AND PROVIDING FOR THE RIGHTS AND REMEDIES OF TH~ HOLDERS
THEREOF", heretofore adopted by the City Council of the City of
Boynton Beach on the llth day of January, 1961, as amended by resolu-
tions adopted by said City Council on February 6, 1961, May 15, 1961
and F~F6~H ~1962 (hereinafter collectively referred to as "Origi-
nal Resolution") and is supplemental to said Original Resolution.
Section 1.02. FINDINGS. It is hereby ascertained, deter-
mined and declared:
(A) That the City of Boynton Beach, Florida (hereinafter
called "City"), now owns, operates and maintains a system for the
supply and distribution of water to the inhabitants of said City,
and others, including the inhabitants of the Town of Ocean Ridge pur-
suant to and under the terms and conditions provided in Chapter 15088,
Laws of Florida, Acts of 1931.
(B) That the Town of Ocean Ridge has heretofore granted
to the City of Boynton Beach a franchise for the construction of
certain water mains, fire hydrants and distribution facilities in
said Town, and for the supply of water to the inhabitants of said
Town for a period of thirty years; that under the terms of said
franchise said water mains, fire hydrants and distribution facilities
constructed by the City in the Town of Ocean Ridge are owned by and
are the property of the City, and a part of its Water System; that
under the terms of said franchise the water mains and distribution
facilities existing in the Town of Ocean Ridge which were then served
by the Water System of the City, pursuant to said Chapter 15088, Laws
of Florida, Acts of 1931, continued to remain the property of said
Town, but were continued to be and are now supplied with water by
the Water System of Boynton Beach under the conditions provided by
said statute and said franchise.
(C) That the City derives revenues from rates, fees and
other charges made and collected for the services and facilities of
said Water System; that said revenues are not pledged or encumbered
in any manner except for the payment of the principal of and interest
on the outstanding bonds of an original issue of $228,000 Water Revenue
Bonds heretofore issued by the City of Boynton Beach under date of
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December 1, 1950 (hereinafter called "Outstanding 1950 Bonds"), for
the payment of certain non-interest bearing refunding agreements
heretofore entered into by the City with various contractors (herein-
after called "Outstanding Contractors' Refunding Agreements") which
Outstanding Contractors' Refunding Agreements are payable from the
revenues of a minor portion of said Water System, and for the payment
of the outstanding bonds of an issue of $1,370,000 Water Revenue Bonds,
Series 1960, issued pursuant to said Original Resolution (hereinafter
called "Outstanding 1960 Bonds").
(D) That the City of Boynton Beach, Florida, now owns,
operates and maintains a municipal sewer system for the collection,
treatment and~disposal of sewage in said City.
(E) That the City derives revenues from rates, fees,
rentals and other charges made and collected for the services and
facilities of said Sewer System; that said revenues are not pledged
or encumbered in any manner except for the payment of the principal
of and interest on the bonds of an authorized issue of $400,000 Sewer
Revenue Bonds, dated September 1, 1958, presently outstanding in the
principal amount of $393,000, bearing interest at the rate of four
per centum (~) per annum and maturing in the years 1962 to 1995,
inclusive, and the payment of the principal of and interest on a
Certificate of Indebtedness in the principal amount of $~01660.00,
dated August 31, 1961, bearing interest at the rate of four per centum
(~) per annum, and maturing in five (5) equal proportionate amounts
on September 1 of each of the years 1962 to 1966, inclusive (all here-
inafter collectively referred to as "Outstanding Sewer System Obliga-
tions" ).
(F) That it is deemed necessary and advisable and in the
best interest of said City to combine said Water System and said Sewer
System for the purposes of financing and other purposes, and said
Water System and said Sewer System be and they are hereby combined
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into one consolidated Water and Sewer System.
(G) That it is deemed advisable and in the best financial
and economic interest of the City to refund or refinance said Out-
standing Sewer System Obligations.
(H) That it is necessary and essential to construct and
acquire additions, extensions and improvements to the Sewer System
of the combined Water and Sewer System, as provided herein, in order
to preserve and p~otect the public health, safety and welfare of the
inhabitants of the City.
(I) That the revenues estimated to be derived in each
year hereafter from the operation of the City.s combined Water and
Sewer System will be sufficient to pay all costs of operation and
maintenance of said Water and Sewer System during such year, the
principal of and interest on the Outstanding 1960 Bonds maturing and
becoming due during such year and all sinking fund, reserve or other
payments required to be made during such year by the Original Resolu-
tion, the principal of and interest on-'the Outstanding 1950 Bonds
maturing and becoming due during such year and all sinking fund, re-
serve or other payments required to be made during such year by the
resolution which authorized the Outstanding 1950 Bonds, the principal
payments required to be made on said Outstanding Contractors~ Refund-
ing Agreements during such year~ and the principal of and interest
on the Water and Sewer Revenue Bonds, Issue of 1961, Series A, to be
issued pursuant to this resolution maturing and becoming due in s~h
year and all sinking fund, reserve or other payments required to be
made during such year by this supplemental resolution.
(J) That the principal of and interest on the Water and
Sewer Revenue Bo~ds, Issue of 1961, Series A, to be issued pursuant
to this ~esolution and all sinking fund, reserve and other payments
provided for in this resolution shall be paid solely from the revenues
derived by the City from the operatio~ of its Water and Sewer System,
subject only to the pro¥isions of the resolution which authorized
the Outstanding 1950 Bonds, and the provisions of the Outstanding
Contractors, Refunding Agreements; that it will never be necessary
or authorized to levy taxes on any real property in the City to pay
the principal of and interest on the Water and Sewer Revenue Bonds,
Issue of 1961, Series A, to be issued pursuant to this resolution or
to make any of the sinking fund, reserve or other payments provided
for in this resolution and that the Water and Sewer Revenue Bonds,
Issue of 1961, Series A, to be issued pursuant to this resolution
shall not constitute a lien upon any of the properties of said Water
and Sewer System or upon any other property whatsoever of the City.
(K) That said Original Resolution provided for the issuance
of pari passu additional obligations under the terms, limitations and
conditions contained in Section 3.04 (L) of said Original Resolution;
that the Water and Sewer Revenue Bonds, Issue of 1961, Series A,
authorized by this resolution will comply fully with all such terms,
limitations and conditions and will be on a parity and rank equally
with said Outstanding 1960 Bonds. ~
(L) That ~ne~ne~ reYenues~ adjusted as provided in Section
3.04 (L) of said Original Resolution, derived from the combined Water
and Sewer System ·
e~~-.-ber 31, !961, being less than the avcrago annuad net
revenues, adjusted as provided in said Section 3.04 (L) of said
Original Resolution, derived from the combined Water and Sewer System
during ~ ~ .... ~
.... ~ ....... ~' ~ .... ~') scm--~-~' calendar months ending December
31, 1961, amounted to $ Z genii°° sai_~ x~~ ~
'~ ; that o~ne~ revenues, as
adjusted, are at least equal to one hundred forty per centum (140%)
of the largest amount of principal and interest which will mature and
become due in any succeeding year on said Outstanding 1960 Bonds, the
Bonds to be issued pursuant to this resolution, the Outstanding 1950
Bonds, and the Outstanding Contractors, Refunding Agreements .
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(M) That the lien of the holders of the Water and Sewer
Revenue Bonds, Issue of 1961, Series A, to be issued pursuant to
this resolution and of the holders of any pari passu additional ob-
ligations~ereafter issued under the terms, limitations and condi-
tions contained in Section 3.04 (L) of said Original Resolution and
in this resolution, on the revenues of the Water System of the Water
and Sewer System are and shall be junior, subordinate and inferior
in all respects as to lien on and source and security for payment
from said water revenues to the lien thereon of the holders of the
Outstanding 1950 Bonds and the Outstanding Contractors~ Refunding
Agreements.
Section 1.03. AUTHORIZATION OF CONSTRUCTION AND ACQU/SITION
OF ADDITIONS, EXTENSIONS AND IMPROVEt~ENTS TO SEWER SYSTEM OF COMBINED
WATER AND SE~.~R SYSTEM AND REFUNDING OR REFINANCING OF OUTSTANDING
SErveR SYSTEM OBLIGATIONS. (A) That there is hereby authorized the
construction and acquisition of additions, extensions and improvements
to the Sewer System of the City's combined Water and Sewer System,
consisting of, but not limited to, the construction of additions to
and the expansion of the sewage treatment plant, and the construction and
instatlatio~ of lift stations, force mains, interceptors and large
mains, together with other facilities, extensions, improvements and
additions, necessary, incidental or appurtenant thereto, including
the acquisition of lands and interests therein necessary or convenient
therefor, and all substantially in accordance with the plans and
specifications therefor prepared or to be prepared by Russell & Axon,
Consulting Engineers, of St. Louis, Missouri, and approved or to be
approved by this Council, at an estimated cost,~inciuding the refund-
ing or refinancing of Outstanding Sewer System Obligations, herein-
after authorized, of not exceeding $1,750,000. Such cost shall be
deemed to include the cost of the construction and acquisition of
said improvements, including the acquisition of any lands or interest
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therein or any other properties deemed necessary or convenient there-
for; engineering, legal, and financing expenses; expenses for estimates
of costs and of revenues; expenses for plans, specifications and sur-
veys; the fees of fiscal agents, financial advisors or consultants,
if any, administrative expenses relating solely to such construction
and acquisition; interest upon the Water and Sewer Revenue Bonds,
Issue of 1961, Series A, issued PUrsuant to this resolution prior to,
during and for six months after the completion of the construction
of said additions, extensions and improvements to the Sewer System
of said Water and Sewer System to the extent that the revenues from
the Water and Sewer System are insufficient therefor, such other
expenses as may be necessary or incidental to the financing authorized
by this resolution, and the construction and acquisition of the im-
provements, extensions and additions authorized by this resolution
and the placing of same in operation.
(B) That there is hereby authorized the refunding or
refinancing of Outstanding Sewer Revenue Bonds in the .principal amount
of $393,000, matmring in the years 1963 to 1999, inclusive, and the
Outstanding Certificate of Indebtedness in the principal amount of
$40,660, maturing in annual installments in the years 1962 to 1966,
inclusive, either through the Purchase or retirement thereof or the
exchange thereof for Bonds authorized by this resolution, in a manner
to be hereinafter determined by the governing body of the City.
Section 1.04. RESOLUTION TO CONSTITUTE CONTRACT. In con-
sideration of the acceptance of the Bonds authorized to be issued
hereunder by those who shall hold the same from time to time, this
resolmtion and the Original Resolution shall be deemed to be and shall
constitute a contract between the City of Boynton Beach, Florida, and
such.Bondholders, and the covenants and agreements herein set forth
to be Performed by said City shall be for the equal benefit, protection
and security of the legal holders of any and all o~ such Bonds and
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the coupons attached thereto, all of which shall be of equal rank and
without Preference, priority r distinction of any of the Bonds or
coupons over any other thereof except as expressly provided therein
or herein.
Section 1.05. DEFINITIONS. The following terms shall have
the following meanings in this resolution unless the text otherwise
expressly requires:
(A)
(B)
"City" shall mean the City of Boynton Beach, Florida.
"Town" shall mean the Town of Ocean Ridge, Florida.
(C) "Act" shall mean Chapter 24398, Laws of Florida, Acts
of 1947, as amended and supplemented, and other applicable provisions
of law.
(D) "Bonds" shall mean the $1,750,000 Water and Sewer
Revenue Bonds, Issue of 1961, Series A, authorized to be issued pur-
suant to this resolution, together with any pari passu additional
obligations hereafter issued pursuant to subsection (L) of Section
3.04 of said Original Resolution and this resolution, in the manner
therein provided, and the interest coupons attached to said Bonds.
(E) "Holder of Bonds" or "Bondholder", or any similar term,
shall mean any person who shall be the bearer or owner of any Bond or
Bonds registered to bearer or not registered, or the registered owner
of any outstanding Bond or Bonds which shall be at the time registered
other than to bearer, or of any coupons representing interest accrued
or to accrue on said Bonds.
(F) "Water and Sewer System" shall mean the complete Water
and Sewer System presently owned, operated and maintained by the City,
together with any and all improvements, extensions and additions
thereto hereafter constructed or acquired, either from the proceeds
of the Bonds or from any other source, together with all lands or
interests therein, plants, buildingS, machinery, franchises, pipes,
fixtures, equipment, and all property, real or personal, tangible or
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intangible, now or hereafter owned or used by said City in connection
therewith; provided however that the water distribution facilities
existing in the Town of Ocean Ridge prior to the granting of the
franchise to said City by the Town, shall, pursuant to Chapter 15088,
Laws of Florida, Acts of 1931, and pursuant to said franchise granted
by the Town to the City, remain the property of the Town~ and, pro-
vided further, that all revenues derived by the City from the supply-
ing of water to inhabitants or users through said~xisting water
distribution facilities of the Town shall be deemed revenues of said
Water and Sewer System as fully and to the same extent as all other
revenues of said Water and Sewer System.
(G) "Facilities" shall mean all the facilities of said
Water and Sewer System, and all parts thereof, existing at the time
of the adoption of this resolution, and also any facilities which may
hereafter be added to said Water and Sewer System, or any part thereof,
by any additions, betterments, extensions, improvements thereto, or
property of any kind or nature, real or personal, tangible or intangible,
hereafter constructed or acquired in connection with said Water and
Sewer System.
(H) "Gross Revenues" or "Revenues" shall mean all fees,
rentals or other charges or other income received by the City, or
accrued to the City or to any Board or Agency of the City in control
of the management and operation of said Water and Sewer System, and
all parts thereof, from the operation of said ~ater and Sewer System,
all as calculated in accordance with sound accounting practice, and
shall be deemed to include all fees, rentals or other charges or other
income received by the City from the supplying of water to inhabitants
or users located in the Town through existing water distribution
facilities in said Town which remain the property of the Town.
(I) "Operating Expenses" shall mean the current expenses,
paid or accrued, of operation, maintenance and repair of the Water
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and Sewer System and its facilities and shall include, without limit-
ing the generality of the foregoing, administrative expenses relating
solely to said Water and Sewer System, insurance premiums, an operating
reserve in the amount certified to by the Consulting Engineers as the
reasonable amount necessary for one month.s cost of operation, main-
tenance and ordinary current repairs of said Water and Sewer System,
and suoh other reasonable current expenses as shall be in accordance
with sound accounting practice. "Operating Expenses" shall not be
deemed to include the cost of the maintenance and repair of the water
distribution facilities existing in the Town prior to the granting
of the franchise to the City by the Town, which said Town is obligated
to pay under said Chapter 15088, Laws of Florida, Acts of 1931, and
said franchise.
(J) "Net Revenues" shall mean the gross revenues, as defined
in subsection (H) above, remaining after deduction only of the costs
of Operating Expenses, as defined in subsection (I) above.
(K) "Consulting Engineers" shall mean Russell & Axon,
Engineers of St. Louis, Missouri, or such other firm of qualified
na~onallv
and/recOgnized engineers as may hereafter be employed by the City.
(L) "Franchise" shall mean the franchise granted to said
City by said Town referred to in Section 1.01 (B) hereof.
(M) Words importing singular number shall include the
plural number in each case and vice versa, and words importing persons
shall include firms and corporations.
ARTICLE II
AUTHORIZATION, TERMS, EXECUTION
AND REGISTRATION OF BONDS
Section 2.01~ AUTHORIZATION OF BONDS. Subject and pursuant
to the provisions of this resolution, obligations of the City to be
known as "Water and Sewer Revenue Bonds, Issue of 1961, Series A"
are hereby authorized to be issued in the aggregate principal amount
of not exceeding One Million Seven Hundred Fifty Thousand Dollars
($1,750,000), for the purpose of financing the cost of the construction
and acquisition of the extensions, additions and improvements to the
Sewer System of the combined Water and Sewer System of the City and
for refunding or refinancing the presently (~tstanding Sewer System
~ligations, as provided in Sections 1.03 (A) and (B) hereof.
Section 2.02. DESCRIPTION 0F BONDS. The Bonds shall be
dated December 1, 1961; shall be in the denomination of $1,000 each;
shall be numbered from 1 to 1,750, both inclusive; shall bear interest
at a rate or rates not exceeding the legal rate, payabl~ semi-annually
on June 1 and December 1 of each year, and shall mature on June 1
of each year as follows:
Year Amount
Year Amount
1964 $ 5,ooo 1973
1965 5,ooo 1974
1966 15,000 1975
1967 15,ooo 1976
1968 15,ooo 1977
1969 15,ooo 1978
197o 15,ooo
1971 15,o0o
1972 20,000 2000
15,o00
lO,OOO
lO,0O0
15,ooo
15,o00
15,ooo
1,550,o00
The Bonds maturing in the years 1964 to 1972, both inclusive,
shall not be redeemable prior to maturity.
The Bonds maturing in the years 1973 to 1978, both inclusive,
and in the year 2000, shall be redeemable prior to maturity, at the
option of the City, as a whole from any legally available funds, on
any interest payment date on or after June 1, 1972, at the price of par
plus accrued interest plus the following premiums, expressed in percent-
ages of the par value thereof, if redeemed in the following years:
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~ear Premium Year
Premium
1972 or 1973 4 1/27g 1982 2
1974 or 1975 4 ~ 1983 1 1/~
1976 or 1977 3 1/~ 1984 1
1978 or 19Z9 3
lo 1985 or
1980 or 19U1 2 1/2y~ thereafter
The Bonds maturing in the year 2000 shall also be redeemable
in part by lot, at the option of the City, but only from the pledged
revenues, on any interest payment date on or after June 1, 1968, at
the price of par plus accrued interest plus the following premiums,
expressed in percentages of the par value thereof, if redeemed in
the following years:
Yea__~r Premium Year Premium
1968 4 ~ 1973 1 1/~/~
1969 3 1/2~ 1974 1 ~
1970 3 % 1975 or
1971 2 1/2~ thereafter 1/2~/~
1972 2 ~
Notice of any such redemption shall be published at least
once at least thirty (30) days prior to the date fixed for redemption,
in a financial paper Published in the City of New York, New York.
Interest shall cease on any of said Bonds duly called for prior re-
demption if payment of the redemption price has been duly made or
provided for.
Said Bonds shall be issued in coupon form, shall be payable
with respect to both principal and interest at such place or places
either within or without the State of Florida, as shall hereafter be
designated by resolution of the City Council prior to the sale of said
Bonds~ in lawful money of the United States of America, and shall
bear interest from their date, payable in accordance with and upon
surrender of the appurtenant interest coupons as they severally mature.
Section 2.03. (A) EXECUTION OF BONDS AND COUPONS. Said
Bonds shall be executed in the name of the City by the Mayor, and
its corporate seal, or a facsimile thereof, shall be affixed thereto
or impressed, imprinted, lithographed or reproduced thereon and
attested by the City Clerk. The facsimile signatures of said Mayor
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and City Clerk may be imprinted, lithographed or reproduced on said
Bonds and on the validation legend appearing thereon, provided
that at least one of said officers shall manually apply his signa-
ture on said Bonds. In case one or more of the officers who shall
have signed or sealed any of the Bonds shall cease to4~e such
officer of the City before the Bonds so signed and sealed shall
have been actually sold and delivered, such Bonds may nevertheless
be sold and delivered as herein provided and may be issued as if
the person who signed or sealed such Bonds had not ceased to hold
such office~ Any Bond may be signed and sealed on behalf of the
City by such person as at the actual time of the execution of
such Bond shall hold the proper office in the City, although at
the date of such Bonds such person may not have held such office
or may not have been so authorized.
The coupons to be attached to the Bonds shall be authenticated
with the facsimile signatures of the present or any future Mayor and
City Clerk of said City, and the City may adopt and use for that
purpose the facsimile signature of any person who shall have been
such Mayor or City Clerk at any time on or after the date of the
Bonds, notwithstanding that he may have ceased to be such Mayor or
City Clerk at the time when such Bonds shall be actually sold and
delivered.
(B) NEGOTIABILITY AND REGISTRATION. The Bonds shall be,
and have all the qualities and incidents of negotiable instruments
under the law merchant and the Negotiable Instruments Law of the
State of Florida, and each successive holder, in accepting any of said
Bonds or the coupons appertaining thereto, shall be conclusively deemed
to have agreed that such Bonds shall be, and have all of the qualities
and incidents of negotiable instruments under the law merchant and
the Negotiable Instruments Law of the State of Florida, and each
successive holder shall be conclusively deemed to have agreed that
said Bonds shall be incontestable in the hands of a bona fide holder
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for value in the manner provided hereinafter in the form of said
Bonds.
The Bonds may be registered at the option of the holder
as to principal only, or as to both principal and interest, at the
office of the City Clerk of the City, such registration to be noted
on the back of said Bonds in the space provided therefor. After such
registration as to principal only, or both principal and interest,
no transfer of the Bonds shall be valid unless made at said office
by the registered owner, or by his duly authorized agent or representa-
tive and similarly noted on the Bonds, but the Bonds may be discharged
from registration by being in like manner transferred to bearer and
thereupon transferability by delivery shall be restored. At the
option of the holder the~Bonds may thereafter again from time to time
be registered or transferred to bearer as before. Such registration
as to principal only shall not affect the negotiability of the coupons
which shall continue to pass by delivery.
Section 2.0~ BONDS MUTILATED, DESTROYED, STOLEN OR LOST.
In case any Bond shall become mutilated or be destroyed, stolen or
lost, the City may in its discretion issue and deliver a new Bond
with all unmatured coupons, if any, so mutilated, destroyed, stolen
or lost in exchange and substitution for such mutilated Bond, upon
surrender and cancellation of such mutilated Bond and attached coupons,
if any, or in lieu of and substitution for the Bond and attached
coupons, if any, destroyed, stolen or lost, and upon the holder
furnishing the City proof of his ownership thereof and satisfactory
indemnity and complying with such other reasonable regulations and
conditions as the City may prescribe and paying such expenses as the
City may incur. All Bonds and coupons so surrendered shall be cancelled
by the City Clerk and held for the account of the City. If any such
Bond or coupon shall have matured or be about to mature, instead of
issuing a substituted Bond or coupon, the City may pay the same, upon
being indemnified as aforesaid, and if such Bond or coupon be lost,
stolen or destroyed, without surrender thereof.
Any such duplicate Bonds and coupons issued PUrsuant to
this section shall constitute original, additional contractual
obligations on the part of the City, whether or not the lost, stolen
or destroyed Bonds or coupons be at any time found by anyone, and
such duplicate Bonds and coupons shall be entitled to equal and
Proportionate benefits and rights as to lien on and source and
security for payment from the revenues of the Water and Sewer System
pledged herein with all other Bonds and coupons issued hereunder.
Section 2.05. FORM ~F BONDS AND COUPONS. The text of the
Bonds and coupons shall be of substantially the following tenor,
with such omissions, insertions and variations as may be necessary
and desirable and authorized or permitted by this resolution or any
subsequent ordinance or resolution adopted prior to the issuance
thereof:
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NO o
UNITED STATES OF D2~ERICA
STATE OF FLORIDA
COUNTY OF PALM BEACH
CITY OF BOYNTON BEACH
WATER AND SEWER REVENUE BOND, ISSUE OF 1961, SERIES A
$1,000
KNOW ALL MEN BY THESE PRESENTS that the City of Boynton Beach,
Florida, for value r$ceived, hereby promises to pay to the bearer,
or if this Bond be registered, to the registered holder as herein
provided, on the first day of June, 19 , from the revenues hereinafter
mentioned, the principal sum of
ONE THOUSAND DOLLARS ($1,000)
with interest thereon at the rate of
per
centum ( %) per annum, payable semi-annually on the 1st day of
June and the 1st day of December in each year upon the presentation
and surrender of the annexed coupons as they severally fall due. Both
principal of and interest on this Bond are payable in lawful money
of the United States of America at
or at the option of the holder, at
This Bond is one of an authorized issue of Bonds in the
aggregate principal amount of $1,750,000 of like date, tenor and effect,
except as to number, interest rate and date of maturity, issued to
finance the cost of the construction and acquisition of additions,
extensions and improvements to the Sewer System of the Combined Water
and Sewer System of the City of Boynton Beach, under the authority of
and in full compliance with the Constitution and Statutes of the State
of Florida, including particularly Chapter 24398, Laws of Florida, Acts
of 1947, as amended and supplemented, and other applicable provisions
of law, and a resolution duly adopted by the City Council of the City
on the day of , 1962, and is subject to all the
terms and conditions of said resolution.
The Bonds, and the coupons appertaining thereto, are
payable solely from and secured by a lien upon and pledge of the net
revenues derived from the operation of the Combined Water and Sewer
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System of the City of Boynton Beach in the manner provided in the
resolution authorizing this issue of Bonds.
The Bonds maturing in the years 1973 to 1978, both inclusive,
and in the year 2000, shall be redeemable prior to maturity, at the
optionS'of the City, as a whole from any legally available funds,
on any interest payment date on or after June l, 1972, at the price
of par plus accrued interest plus the following premiums, expressed
in percentages of the par value thereof, if redeemed in the following
years:
Year
1972 or 1973
1974 or 1975
1976 or 1977
1978 or 1979
1980 or 1981
Premium Year Premium
1985 or
2 1/2% thereafter 1/2%
The Bonds maturing in the year 2000 shall also be redeemable
in part by lot, at the option of the City, but only from the pledged
revenues, on any interest payment date on or after June l, 1968,
at the price of par plus accrued interest plus the following premiums,
expressed in percentages of the par value thereof, if redeemed in the
following years:
Year Premium Year Premium
1969 3 1/ 1974 1
1970 3 1975 or
1971 2 1/0 thereafter 1/2%
1972 2
A notice of any such redemption shall be published at least once,
at least thirty (30) days prior to the redemption date, in a
financial paper published in the City of New York, New York, and
interest will cease on any of said Bonds duly called for prior
redemption if payment of the redemption price has been duly made
or provided for.
The lien of the holders of the Bonds of the issue of which
this Bond is one on the net revenues derived from the operation of
the City's combined Water and Sewer System is on a parity and ranks
-17-
fix, establish, maintain and collect rates, fees, rentals or other
charges for the services and facilities of the City's Water and Sewer
System, and to revise the same from time to time whenever necessary,
as will always provide funds in each year sufficient to pay all costs
in such year
of operation and maintenance of said Water and Sewer System~ one
hundred twenty-five per centum of the maximum debt service requirement
as defined in said resolution,
/for the Bonds of the issue of which this Bond is one, the Outstanding
Water Revenue Bonds, Series 1960, dated December 1, 1960, the outstand-
ing Water Revenue Bonds, dated December 1, 1950 and the Outstanding
in any succeeding year,
Contractors' Refunding Agreement~, and that such rates, fees, rentals
or other charges shall not be reduced so as to be insufficient to
provide adequate revenues for such purposes; and said City has entered
into certain further covenants~with the holders of the Bonds of this
issue for the terms of which reference is made to said resolution.
It is hereby certified and recited that all acts, condi-
tions and things required to exist, to happen and to be performed
precedent to and in the issuance of this Bond, exist, have happened
and have been performed in regular and due form and time as required
by the Laws and Constitution of the State of Florida applicable
thereto, and that the issuance of this Bond, and of the issue of
Bonds of which this Bond is one, does not violate any constitutional,
statutory o~rter limitations or provisions.
T~is'Bond,-~9~ and the coupons appertaining thereto, is, and
has all the qualities and incidents of, a negotiable instrument
under the law merchant and the Negotiable Instruments Law of the
State of Florida, and the original holder and each successive holder
of this Bond, or of the coupons appertaining thereto, shall be con-
clusively deemed by his acceptance thereof to have agreed that this
Bond and the coupons appertaining thereto shall be and have all the
qualities and incidents of negotiable instruments under the law
merchant and the Negotiable Instruments Law of the State of Florida.
The original holder and each successive holder of this Bond, and of
-19-
the coupons appertaining hereto, shall be conclusively deemed to
have agreed and consented to the following terms and conditions:
(a) Title to this Bond, unless registered as herein
provided, and to the annexed interest coupons may be transferred by
delivery in the manner provided for negotiable instruments payable
to bearer in the law merchant and the Negotiable Instruments Law of
the State of Florida;
(b) Any person in possession of this Bond, unless registered
as herein provided, or of the interest coupons hereunto appertaining,
regardless of the manner in which he shall have acquired possession
hereof, is hereby authorized to represent himself as the absolute
owner hereof, and is hereby granted power to transfer absolute title
hereto by delivery hereof to a bona fide purchaser, that is, to
anyone who shall purchase the same for value (present or antecedent)
without notice of prior defenses or equities or claims of ownership
enforceable against his transferror; every prior taker or owner of
this Bond, unless registered as herein provided, and of the annexed
interest coupons, waives and renounces all of his equities and rights
herein in favor of every such bona fide purchaserZ and every such
bona fide purchaser'shall acquire absolute title hereto and to all
rights represented hereby; and
(c) The City of Boynton Beach, Florida, may treat the
bearer of this Bond, unless registered as herein provided, or of the
interest coupons hereunto appertaining, as the absolute owner hereof
for all purposes without being affected by any notice to the contrary.
This Bond may be registered as to principal only, or as
to both principal and interest, in accordance with the provisions
endorsed hereon.
IN WITNESS WHEREOF, the City of Boynton Beach, Florida,
has issued this Bond and has caused the same to be signed by the
manual or facsimile signature of its Mayor, and the corporate seal
-20-
of said City or a facsimile thereof to be affixed, impressed, imprint-
ed, lithographed or reproduced hereon and attested by the manual
or facsimile signature of its City Clerk, and has caused the interest
coupons hereto attached to be executed with the facsimile signatures
of the said Mayor and City Clerk, all as of the 1st day of December,
1961.
CITY OF BOY~Y~ON BEACH, FLORIDA
(Seal)
Attest:
Mayor
'"dity Clerk
-21-
No. FORM OF COUPON
On the 1st day of
Beach, Florida, will pay to the bearer at
, 19 ,
the City of Boynton
, or at the option of the holder, at
from the
revenues described in the Bond to which this coupon is attached, the
sum of dollars ($
in lawful money of the United States of America, upa~n presentation and
surrender of this coupon, being six months interest then due on its
Water and Sewer Revenue Bond, Issue of 1961, Series A, dated December
1, 1961, No. ·
CITY OF BOYNTON BEACH, FLORIDA
Mayor
C'i'ty Clerk
(To be inserted in coupons maturing after callable date)
"Unless the Bond to which this coupon is attached shall
have been previously duly called for prior redemption and payment
thereof duly made or provided for."
VALIDATION CERTIFICATE
This Bond is one of a series of Bonds which were validated
and confirmed by decree of the Circuit Court of the Fifteenth Judicial
Circuit of the State of Florida, in and for Palm Beach County, render-
ed on the day of , 1962.
Mayor
City Clerk
PROVISION FOR REGISTRATION
This Bond may be registered in the name of the holder on
the books to be kept by the City Clerk as Registrar, or such other
Registrar as may hereafter be duly appointed, as to principal only,
such registration being noted hereon by such Registrar in the registra-
tion blank below, after which no transfer shall be valid unless made
on said books by the registered holder or attorney duly authorized and
similarly noted in the registration blank below, but it may be discharg-
ed from registration by being transferred to bearer, after which it
shall be transferable by delivery, but it may be again registered as
before. The registration of this Bond as to principal shall not
restrain the negotiability of the coupons by delivery merely, but the
coupons may be surrendered and the interest made payable only to
the registered holder, in which event the Registrar shall note in
the registration blank below that this Bond is registered as to interest
as well as principal, and thereafter the interest will be remitted by
mail to the registered holder. With the consent of the holder and
of the City of Boynton Beach, this Bond, when converted into a Bond
registered as to both principal and interest, may be reconverted into
a coupon Bond and again converted into a Bond registered as to both
principal and interest as hereinabove provided. Upon reconversion of
this Bond, when registered as to principal and interest into a coupon
Bond, coupons representing the interest to accrue upon the Bond to
date of maturity shall be attached hereto by the Registrar and the
Registrar shall note in the registration blank below whether the Bond
is registsred as to principal only or payable to bearer.
DATE OF
REGISTRATION
IN WHOSE N~E
REGISTERED
EXTENT OF
REGISTRATION
SIGNATURE
OF REGISTRAR
-23-
ARTICLE III
UOVENANTS, REVENUES, FUNDS AND APPLICATION THEREOF
Section 3.01. BONDS NOT TO BE INDEBTEDNESS OF THE CITY.
Neither the Bonds or ~oupons appertaining thereto, shall be or
constitute an indebtedness of the City within the meaning of any
Constitutional, statutory or charter limitation of indebtedness, but
shall be payable solely from the net revenues derived from the opera-
tion of said Water and Sewer System as herein provided. No holder or
holders of any Bonds issued hereunder, or of any coupon appertaining
thereto, shall ever have the right to compel the exercise of the ad
valorem taxing power of the City, or taxation in any form of any real
property therein to pay said Bonds or the interest thereon.
Section 3.02. BONDS SECURED BY PT~DGE OF NET REVENUES. The
payment of the debt service of all of the Bonds issued hereunder shall
be secured forthwith equally and ratably by a lien on and pledge of the
net revenues derived from the operation of the Water and Sewer System
and the lien of the holders of the Bonds on the net revenues derived
from the combined Water and Sewer System shall be on a parity and rank
equally, as to lien on and source and security for payment from said
net revenues of the combined Water and Sewer System and in all other
respects with the Outstanding 1960 Bonds issued pursuant to said Orig-
inal Resolution, and any pari passu additional Bonds hereafter issued
pursuant to and within the terms, limitations and conditions contained
in Section 3.04 (L) of said Original Resolution and th~s resolution.
The net revenues derived from the Water and Sewer System, in an amount
sufficient to pay the principal of and interest on the Bonds herein
authorized, and to make the payments provided for in said Original
Resolution and in this resolution, are hereby irrevocably pledged to
the payment of the principal of and interest on the Outstanding 1960
Bonds and the Bonds herein authorized, as the same become due; provid-.
ed, however, that before the revenues derived from the operation of
-24-
the Water System of the combined Water and Sewer are used and applied
as in said Original Resolution and in this resolution provided, such
revenues shall first be used for the payment of the principal of and
interest on the Outstanding 1950 Bonds as the same mature and become
due and for the making of all sinking fund, reserve and other~-payments
provided for in the resolution which authorized the issuance of the
Outstanding 1950 Bonds, and for the making of the principal payments
required to be made pursuant to, and on account of, said Outstanding
Contractors' Refunding Agreements.
The lien of the holders of the Bonds issued pursuant to
this resolution on the revenues derived from the operation of the
Water System of the combined Water and Sewer System is junior, sub-
ordinate and inferior in all respects as to lien on and source and
security for payment from such water revenues to the lien thereon of
the holders of the Outstanding 1950 Bonds, and of the Outstanding
Contractors' Refunding Agreements.
Section 3.03. APPLICATION OF BOND PROCEEDS. Ail moneys
received from the sale of any or all of the Bonds issued pursuant
to this resolution shall be disbursed as follows:
(A) An amount sufficient to refund or refinance said
Outstanding Sewer System Obligations shall first be immediately
used by the City for the retirement of said Outstanding Sewer System
Obligations.
(B) The balance of such proceeds of sale of the Bonds
shall be deposited by the City with a bank or trust company to be
hereafter designated by resolution of the City Council, as Trustee,
in a trust fund to be known as the "Sewer Construction Trust Fund"
which is hereby created. The City and said bank or trust company
shall enter into a Construction Trust Fund Agreement concerning the
application of said fund, said agreement to be in a form to be here-
after determined by resolution. Said agreement shall provide, among
other things, that no withdrawals shall be made from said Sewer
-25-
Construction Trust Fund, except for legal and engineering expenses,
interest maturing on the Bonds prior to, during, and for six months
after the completion of said improvements, fees of fiscal or financial
agents, and expenses in connection with the issuance and sale of the
Bonds authorized by this resolution, without the written approval of
the Consulting Engineers and only upon receipt by said Trustee of a
written requisition executed by the general manager or other duly
authorized official in charge of the Water and Sewer System specifying
the purpose for which such withdrawal is to be made. If for any reason
the moneys in said fund, or any part thereof, are not necessary for,
or are not applied to the purposes provided in this resolution, then
such.unapplied proceeds shall be deposited by the Trustee, upon
certification of the Consulting Engineers that such surplus proceeds
are not needed for the purposes of the Sewer Construction Trust Fund,
in the Reserve Account in the Sinking Fund established pursuant to
said Original Resolution, and shall be used only for the purposes
therein and herein provided.
Ail of the proceeds of the sale of the Bonds shall be and
constitute trust funds for the purposes hereinabove provided and
there is hereby created a lien upon such moneys, until so applied,
in favor of the holders of the Bonds. The moneys deposited in the
Sewer Construction Trust Fund may, pending their use for the purposes
provided in this resolution, be temporarily invested in direct obliga-
tions of the United States of America, maturing not later than twelve
months after the date of purchase thereof.
Section 3.04. COVENANTS OF THE CITY. So long as any of
the principal of or interest on any of the Bonds shall be outstanding
and unpaid, or until there shall have been set apart in the Sink-
ing Fund established pursuant to said Original Resolution a sum
sufficient to pay, when due, the entire principal of the Out-
standing 1960 Bonds and the Bonds issued hereunder remaining unpaid,
-26-
il together with interest accrued and to accrue thereon, the City covenants
with the holders of any and all of the Bonds issued pursuant to this resolution
as follows:
(A) Rates. That the City will fix, establish, maintain and collect rates,
fees, rentals or other charges for the services and facilities of the combined
Water and Sewer System, and revise the same from time to time whenever
necessary, as will always provide funds in each year sufficient to pay, and out
of said funds shall pay, all costs of operation and maintenance of said Water
and Sewer System, one hundred twenty-five per centum of the maximum debt
service requirement for the Bonds, the Outstanding 1960 Bonds, the Outstandi~
1950 Bonds and the Oustanding Contractor's refunding Agreements, and that
such rates, fees,rentals or other charges shall not be reduced so as to be in-
sufficient to provide adequate revenues for such purposes.
For the purposes of this resolution the term "maximum debt service re-
quirement in any year" for any bonds shall mean the maximum amounts requir~
to be paid in such year into any sinking fund, principal and interest account and
bond redemption account or mandatory sinking fund for such bonds.
(B) WATER AND SEWER SYSTEM REVENUE FUND. That the entire
Gross Revenues derived from the operation of the combined Water and Sewer
System shall upon receil~thereof be deposited in the Water System Revenue
Fund created and established pursuant to said Original Resolution which Fund
shall be continued and maintained as long as any of the Bonds issued pursuant
to this resolution or interest thereon, are outstanding and unpaid and shall
hereafter be designated as the "Water and Sewer System Revenue Fund" Said
Fund shall constitute a trust fund for the purposes provided in said Original
Resolution and in this resolution, and shall be kept separate and distinct from
all other funds of the City and used only for the purposes and in the manner
provided for in said Original Resolution and in this resolution; provided,
however, that the City shall comply fully with all the covenants, agreements
and provisions of the resolution which authorized the issuance of the Ouistand-
ing 1950 Bonds, with the provisions of the Outstanding Contractors' Refunding
Agreements as long as any of the said outstanding obligations are outstanding
and unpaid or until adequate provision is irrevocably made for the payment
Lhereof. In order
-27-
g
to accomplish said purpose the City shall, as long as any of said
outstanding obligations are outstanding and unpaid, or until adequate
provision is irrevocably made for the payment thereof, keep separate
records of the revenues derived from the water system and the sewer
system of said combined Water and Sewer System, and apply such revenues
derived from the water system in accordance with the provisions of
the proceedings which authorized said Outstanding 1950 Bonds, the
provisions of said Outstanding Constractors' Refunding Agreements,
the provisions of said Original Resolution and the provisions of this
resolution. In applying and distributing the net revenues derived
from said water system of said combined Water and Sewer System, all
payments for principal and interest, and reserves therefor, shall be
on a parity and rank equally as between said Outstanding 1960 Bonds
and the Bonds authorized by this resolution, but payments for principal
and interest, and reserves therefor, on the Outstanding 1960 Bonds
and the Bonds issued pursuant to this resolution shall be junior,
subordinate and inferior to said Outstanding 1950 Bonds and said
Outstanding Contractors' Refunding Agreements. In applying and
distributing the net revenues from the sewer~system of said combined
Water and Sewer System, all payments for principal and interest, and
reserves therefor shall be on a parity and rank equally as between
said 0utstand±ng 1960 Bonds and the Bonds authorized by this resolution.
After the final payment, or the making of irrevocable pro-
vision for payment, of all said Outstanding 1950 Bonds and said Out-
standing Contractors' Refunding Agreements then all revenues derived
from both the water system and the sewer system of said combined Water
and Sewer System shall be deposited in the Water and Sewer System
Revenue Fund created by said Original Resolution and applied and
distributed in the manner provided in said Original Resolution, and
this resolution.
(C) OPERATING AND MAINTENANCE. That it will maintain in
good condition said Water and Sewer System and all parts thereof, and
-28-
will operate the same in an efficient and economical manner, making
such expenditures for equipment and for renewal, repair and replacement
as may be proper for the economical operation and maintenance thereof.
(D) DISPOSITION OF REVENUES. That all revenues at any
time remaining on deposit in the Water and Sewer System Revenue Fund
shall be disposed of only in the following manner and in the follow-
ing order:
(!) Revenues shall first be used for the payment of all
current Operating Expenses of said combined Water and Sewer System,
as defined herein.
(2) Revenues of the water system of the combined Water and
Sewer System shall next be used to make the payments to the Sinking
Fund, including the Reserve Account therein, required by the resolu-
tion which authorized the issuance of the Outstanding 1950 Bonds, and
to make the principal payments required to be made pursuant to, and
on account of, said Outstanding Contractors' Refunding Agreements.
(3) Thereafter all revenues remaining on deposit in the
Revenue Fund shall be deposited in the 1960 Water Revenue Bond Fund
created and established pursuant to said Original Resolution. Said
Bond Fund shall be continued and maintained with the Atlantic National
Bank of West Palm Beach, as Trustee, as provided ±n said Original
Resolution as long as any of the Bonds issued pursuant to this resolu-
tion, or interest thereon, are outstanding and unpaid and said Fund
shall hereafter be~designated "Water and Sewer Revenue Bond Fund" (here-
inafter called "Bond Fund"~. Said Bond Fund shall continue to constitute
a trust fund for th~ purposes of this resolution and shall be held by
said Trustee under the Trust Agreement executed pursuant to said Origin-
al Resolution and a Supplemental Trust Agreement to be entered into by
the Trustee and the City pursuant to this resolution, in such form as
shall hereafter be designated by resolution of the City Council.
(4) The Sinking Fund and the Principal and Interest Account,
the Reserve Account, and the Bond Redemption Account therein created
and established pursuant to said Original Resolution, shall be
-29-
continued and maintained under the administration and control of the
Trustee as provided in said Original Resolution as long as any of
the Bonds issued pursuant to this resolution, or interest thereon,
are outstanding and unpaid. On the fifteenth day of each month the
Trustee shall deposit into said Principal and Interest Account in
said Sinking Fund, in addition to the ~nounts required to be deposited
therein pursuant to said Original Resolution, from the moneys in said
Bond Fund, such sums as will be sufficient to pay one-sixth of all
the interest maturing on the Bonds on the next interest payment date,
and beginning with June 15, 1963, one-twelfth of all principal matur-
ing on the Bonds maturing in the years 1964 to 1978, both inclusive,
on the next principal maturity date; provided, however, that until
six months after the completion of the improvements authorized herein,
the proceeds of said Bonds may be used to pay maturing interest to
the extent that revenues are insufficient therefor.
The Trustee shall also deposit in the Reserve Account in
said Sinking Fund, in addition to the deposits required to be made
therein pursuant to said Original Resolution, on the fifteenth day
of each month, beginning with the fifteenth day of the first full
calendar month following the date of the delivery of all or any of
the Bonds authorized herein a sum equal to one-twelfth (1/12) of
twenty per centum (20~) of the maximum debt service requirement (as
defined in Section 3.0~(D)(3)(b) of said Original Resolution) for the
Bonds in any succeeding year, provided, however that no further
deposits shall be required to be made by the Trustee into said
Reserve Account when there shall have been deposited~therein, and
as long as there shall remain on deposit therein pursuant to this
resolution and said Original Resolution an aggregate amount equal
to the maximum debt service requirement for said Bonds and said
Outstanding 1960 Bonds in any succeeding year.
Any withdrawals from the Reserve Account shall be subsequent-
ly restored from the first revenues of the Water and Sewer System
-30-
available after all required current payments for the Principal and
Interest Account and Reserve Account including any deficiencies for
prior payments, have been made in full.
Moneys in the Reserve Account pursuant to this resolution
shall be used only for the purpose of the payment of maturing
principal of or interest on the Outstanding 19® Bonds and the Bonds
issued pursuant to this resolution,and for making the payments into
the Bond Redemption Account, in each year to the extent that funds
otherwise deposited in the Sinking Fund are insufficient therefor and
for no other purpose, except that such moneys may be invested and
reinvested as pro¥ided in said Original Resolution.
The Trustee shall thereafter deposit in the Bond Redemption
Account, in said Sinking Fund, in addition to the deposits required
to be made therein pursuant to said Original Resolution, on the
fifteenth day of each month in each year, beginning with June 15, 1977,
an amount equal to one-twelfth (1/12) of the amount stated below to
be accumulated for such year:
Year Ending Annual Year Ending Annual
May 31st Amount May 31st Amount
1978 $ 4,020 1990 $ 31,155
1979 al,105 1991 32,160
1980 22,110 1992 32,160
1981 23,115 1993 34,170
1982 24,120 1994 131,655
1983 26,130 1995 136,6~0
1984 26,130 1996 142,710
1985 25,125 1997 148,740
1986 26,130 1998 154,770
1987 27,135 1999 161,805
1988 28,140 2000 167,835
1989 30,150
The moneys in said Bond Redemption Account shall be used
solely for the purchase or redemption of said Outstanding 1960 Bonds
and the Bonds issued pursuant to this resolution. The Trustee may
at any time purchase any of said Bonds at prices not greater than the
then redemption~price of said Bonds or, if the Bonds be not then
redeemable prior to maturity, at prices not greater than the redemption
-31-
price of such Bonds on the next ensuing redemption date, and the
Trustee shall, to the extent of any moneys in said Bond Redemption
Account on the twentieth (20th) day of March in each year, be obli-
gated to use such moneys for the redemption prior to maturity of Bonds
on the next June lst; provided, that the Trustee shall not be so
obliged to redeem Bonds prior to maturity unless and until there are
sufficient moneys on deposit in the Bond Redemption Account to pro-
vide for the redemption of at least Ten Thousand Dollars ($10,000)
principal amount of Bonds, at any one time.
The Trustee shall not be required to make any further pay-
ments into the Sinking Fund when the aggregate amount of funds on
deposit in the various accounts in said Sinking Fund are at least
equal to the aggregate principal amount of Bonds issued pursuant to
said Original Resolution and this resolution then outstanding, plus
all interest accrued or to accrue on said Bonds then outstanding, or
when all Bonds then outstanding shall have been previously duly
called for prior redemption and sufficient funds have been irrevocab-
ly placed in trust for the payment of such Bonds then outstanding,
including interest accrued thereon and redemption premium, if any.
Upon the issuance by the City of any pari passu additional
Bonds under the terms, limitat±ons and conditions provided in said
Original Resolution and this resolution, the payments into the various
accounts in the Sinking Fund shall be increased in such amounts as
are necessary to make the payments required above for principal of
and interest on, and reserves therefor, said pari passu additional
Bonds.
(5) The Renewal and Replacement Fund, created and establish-
ed pursuant to said Original Resolution, shall be continued and
maintained as long as any of the Bonds issued pursuant to this resolu-
tion, or interest thereon, are outstanding and unpaid, and the Trustee
shall continue to pay to the City for deposit into such fund from the
-32-
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goj XIUO posh oq II-Ms pu~ pung ~uI~uyW oM~ u¥ po2¥sodop oq
-mi II-Ms mo~sXW go~o~ pu~ go~ pyas jo uo¥~¥sodsyp ~oq~o go
apuo~ Jo aaaploq ao ~oplog Au~ og ~a~g 9lq~uo~@~ ll~ g~
~9~0~ pu~ a~ oq~ jo @ou~ua~u~ pu~ uoT~do ~oj sg~ng~pu~dx9
9~ II~qs pu~ ~q~ ~o ~¥g p@gsTu~nj ~q suoT~nios9~ pu~ ~9~pnq
syq @IYJ II.Ms oq~ uoy~nloso~ syq~ pu~ uo¥%nios~H i~u¥~y~O pyas
o~ ~u~nsgnd psnss7 spuoE jo sgoPiOq go aepIoq Xu~ o~ sou~uoguy~m pu~
uoy~g~do goj ssgn$¥pusd×e pes~egou¥ ~uyzygoq~n~ suoy~niossg yy~ pu~
sq$ uodn ~dsox@ sp~m @q II~qS $~pnq qons jo ~unoure sq$ jo (~OI)
uoygnloseg ~ Jq uoyg~puommoo@g pu~ ~uypuyj qons poAogdd~ oA~q II~qs
ssodgnd ~q~ IY~$sp uy s%~%s II~qS uoy~pusmmoosg pu~ ~uypuyj qoyq~
oq~ Jo oou~uo~uT~ pu~ uo¥~godo oq~ goj sogngTpued×s o~ 'X~TO
@g~dagd JII~nuu~ II~qS X~TO sq% ~q~ '~ZO(Ifl~ OXI~VHZgO (I)
~'mYq psqsyugnj
anyone acting for and in behalf of such Bondholder or Bondholders.
(J) M INTENANCE OF WATER AND SEWER SYSTEM. That the City
A ·
will maintain said Water and Sewer System in good condition and con-
tinuously operate the s~e in an efficient manner and at a reasonable
cost.
(K) SERVICES RENDERED TO THE CITY OR TOWN. That the City
will not render or cause to be rendered any free services of any nature
by its Water and Sewer System, nor will any preferential rates be estab-
lished for users of the same class; and in the event the City or the
Town of~Ocean Ridge, or any department, agency, instrumentality,
officer or employee of said City or Town, or any other municipality
or political subdivision of the State of Florida shall avail itself
or themselves of the facilities or services provided by said Water
and Sewer System, or any part thereof, the same rates, fees or charges
applicable to other customers receiving like services under similar
circumstances shall be charged said City or Town and any such
department, agency, instrumentality, officer or employee. Such
charges shall be paid as they accrue, and the City or Town shall
transfer from their general funds sufficient sums to pay such charges.
The revenues so received shall be deemed to be revenues derived from
the operation of the combined Water and Sewer System, and shall be
deposited and accounted for in the same manner as other revenues
from such operation of the Water and Sewer System.
(L) ISSUANCE OF PARI PASSU ADDITIONAL BONDS. That no pari passu
additional Bonds, as in this subsection defined, payable pari passu
with Bonds issued pursuant to said Original Resolution and this resolu-
tion out of the revenues of the Water and Sewer System shall be issued
after the issuance of any Bonds pursuant to this resolution, except
upon the following terms and conditions, provided,however, that as long
as said Outstanding 1960 Bonds are outstanding and unpaid, the City
shall comply fully with all the provisions of said Original Resolution
relating to the issuance of pari passu additional Bonds in addition
to the PrOVisions contained in this subsection (L).
Pari passu additional Bonds payable f~om the net revenues
of the Water and Sewer System may be issued by the City for the pur-
pose of financing the construction and acquisition of additions,
extensions and improvements to the City's Water System, or for the
construction or acquisition of a sewage disposal system, or additions,
extensions and improvements thereto, only if the average annual net
revenues of the Water and Sewer System during the immediately preceding
twenty-four (24) complete calendar months, or the net revenues of
the Water and Sewer System during the immediately preceding twelve
(12) complete calendar months, whichever is the lesser, as certified
by the Consulting Engineers, shall be equal to not less than one
hundred forty per centum (140/.~) of the largest amount of principal
and interest which will mature and become due~in any succeeding year
thereafter on: (1) the Bonds theretofore issued pursuant to this
resolution, including any pari passu additional Bonds theretofore
issued, then outstanding; (2) the pari passu additional Bonds proposed
to be issued; and (3) any obligations then outstanding payable from
and having a prior and senior lien on the net revenues of the Water
System of the combined Water and Sewer System including the Outstand-
ing 1950 Bonds and Outstanding Contractors, Refunding Agreements.
In determining the amount of net revenues for the purposes
of the above paragraph, the Consulting Engineers may adjust net
revenues by adding thereto the following:
(1) The net revenues (computed for such acmlity on the f ·
same basis as net revenues are computed for the Water and Sewer System)
of any water or sewer utility which the City might have constructed
or acquired previous to the issuance of such pari passu additional
Bonds or ~ich the City shall be acquiring from proceeds of such
p~i passu additional Bonds, and which, in the case of the acquisition
-41-
thereof, has been operating for a part of the same base period or
periods.
(2) In the event a change has been made in the rate
schedules for services from the Water and Sewer System prior to the
issuance of the proposed pari passu additional Bonds for a part of
the same base period or periods and such change has resulted in an
increase in net revenues, seventy-five per cent (75~) of an estimate
made by such Consulting Engineers of such additional net revenues for
the same base period or periods.
(3) In the event the City shall have combined or authorized
the combination of a sewer utility with the Water System and shall
have established sewer rates or charges to be charged and collected
from users of such sewer utility when service is rendered, seventy-
five per cent (75~) of the net revenues estimated by the Consulting
Engineers to be derived during the first twelve months of operation
after completion of the construction or acquisition of said sewer
utility, or additions, extensions and improvements thereto, from
the proposed users of the sewer utility or part thereof to be financed
by pari passu additional bonds together with oth~er funds on hand or
lawfully obtained for such~purpose and deposited in a Construction
Trust Fund to be established for such purpose, which are then actual
customers of the Water System of the Cityts combined Water and Sewer
System.
For the purpose of computing "the largest amount of principal
and interest maturing and becoming due in any succeeding year", the
amounts provided to be deposited in the Bond Redemption Account, in
each year, pursuant to the provisions of this resolution or any
resolution amendatory hereof or supplemental hereto for the purpose
of paying the principal of term Bonds prior to maturity and for which
no serial maturities have been provided shall be deemed to be serial
maturities~ and the amount of principal maturing in the years 1993 or
2000 or in any other year for such term Bonds shall not be computed.
For the purpose of this subsection (L), the phrase "bonds
theretofore issued pursuant to this resolution,~, shall be deemed
to include the $1,750,000 Bonds originally authorized to be issued
pursuant to this resolution, and also any additional pari passu
bonds theretofore issued under the conditions and in the manner pro-
vided in this subsection
The term, '~pari passu additional Bonds", as used in this
subsection (L), shall be deemed to mean additional obligations evi-
denced by Bonds issued under the provisions and within the limitations
of said Original Resolution and this subsection payable from net
revenues of the Water and Sewer System, as hereinbefore authorized,
pari passu with Bonds originally authorized and issued pursuant to
said Original Resolution and this resolution. Such Bonds shall be
deemed to have been issued pursuant to said Original Resolution and
this resolution the same as the Bonds originally authorized and
issued pursuant to said Original Resolution and this resolution, and
all of the covenants and other provisions of said Original Resolution
and this resolution (except as to details of such Bonds evidencing
such pari passu additional obligations inconsistent therewith), shall
be for the equal benefit, protection and security of the holders of
any Bonds originally authorized and issued pursuant to said Original
Resolution and this resolution and holders of any Bonds evidencing
additional obligations subsequently issued within the limitations of
and in compliance with said Original Resolution and this subsection.
Ail of such Bonds regardless of the'time or times of their issuance
shall rank equally with respect to their lien on and source and
security for payment from the net revenues of such Water and Sewer
System without preference of any Bonds or coupons over any other.
The term, "pari passu additional Bonds", as used in this
subsection (L), shall not be deemed to include bonds, notes, certifi-
cates or other obligations subsequently issued, the lien of which
on the revenues of the Water and Sewer System is subject to the prior
and superior lien on such revenues of Bonds issued pursuant to said
Original Resolution and this resolution, and the City shall not issue
any obligations whatsoever payable from the revenues of the Water and
Sewer System which rank equally as to lien on and source and security
for payment from such revenues with Bonds issued pursuant to said
Original Resolution and this resolution, except in the manner and under
the conditions provided in said Original Resolution and in this
subsection (L).
No pari passu additional Bonds, as in this subsection (L)
defined, shall be issued at any time, however, unless all of the pay-
ments into the respective funds provided for in said Original Resolution
and this resolution on Bonds then outstanding, and all other sinking
fund, reserve or other payments provided for in said Original Resolu-
tion and this resolution shall have been made in full to the date
of issuance of said pari passu additional Bonds, and the City shall
have fully complied with all the covenants, agreements and terms of
:~'~l Original Resolution and this resolution.
(M) REMEDIES Any holder of Bonds or any coupons apper-
taining thereto, issued under the provisions of said Original Resolu-
tion or this resolution, or any trustee acting for such Bondholders
in the manner hereinafter provided, may either at law or in equity,
by suit, action, mandamus or other proceeding in any court of competent
jurisdiction, protect and enforce any and all rights under the laws
of the State of Florida, or granted and contained in this resolution
and may enforce and compel the performance of all duties required by
this resolution or by any applicable statutes to be performed by the
City or by any officer thereof, including the fixing, charging and
collecting of rates, fees, rentals or other charges for the services
and facilities of the Water and.~Sewer System.
In the event that default shall be made in payment of the
interest on or the principal of any of the Bonds issued pursuant to
said Original Resolution or this resolution, as the same shall become
due, or in the making of the reserve, sinking fund or other payments
required to be made by said Original Resolution or this resolution,
or in the event that the City or any officer, agent or employee there-
of shall fail or refuse to comply with the provisions of said Original
Resolution or this resolution, or shall default in any covenant made
herein, and in the further event that any such default shall continue
for a period of thirty (30) days, any holder of such Bonds, or any
trustee appointed to represent Bondholders as hereinafter provided,
shall be entitled as of right to the appointment of a receiver of the
Water and Sewer System in an appropriate judicial proceeding in a court
of competent jurisdiction, whether or not such holder or trustee is
also seeking or shall have sought to enforce any other right or exer-
cise any other remedy in connection with Bonds issued pursuant to said
Original Resolution or this resolution.
The receiver so appointed shall forthwith, directly or by
his agents and attorneys, enter into and upon and take possession of
the Water and Sewer System, and each and every part thereof, and shall
hold, operate, maintain, manage and control such Water and Sewer
System, and each and every part t ~
hereoz, and in the name of the City
shall exercise all the rights and powers of the City with respect
to the Water and Sewer System as the City itself might do. Such
receiver shall collect and receive all revenues and maintain and operate
such Water and Sewer System in the manner provided in this resolution,
and comply under the jurisdiction of the court appointing such receiver,
with all of the provisions of said Original Resolution and this resolu-
tion.
P~enever all that is due upon Bonds issued pursuant to said
Original Resolution and this resolution, and interest thereon, and
under any covenants of said Original Resolution and this resolution
for reserve, sin]~ing fund or other funds, and upon any other obliga-
tions and interest thereon having a charge, lien or encumbrance upon
the revenues of the Water and Sewer System, shall have been paid and
made good, and all defaults under the provisions of said Original
Resolution and this resolution shall have been cured and made good,
possession of the Water and Sewer System shall be surrendered to the
City upon the entry of an order of the court to that effect. Upon
any subsequent default, any holder of Bonds issued pursuant to said
Original Resolution and this resolution, or any trustee appointed
for Bondholders as hereinafter provided, shall have the right to
secure the further appointment of a receiver upon any such subsequent
default.
Such receiver shall, in the performance of the powers herein-
above conferred upon him, be under the direction and supervision of
the court making such appointment, shall at all times be subject to
the orders and decrees of such court, and may be removed thereby
and~'a successor receiver appointed in the discretion of such court.
Nothing herein contained shall limit or restrict the jurisdiction of
such court to enter such other and further orders and decrees as such
court may deem necessary or appropriate for the exercise by the
receiver of any function not specifically set forth herein.
Any receiver appointed as provided herein shall hold and
operate such Water and Sewer System in the name of the City and for
the joint protection and benefit of the City and holders of Bonds
issued pursuant to said Original Resolution and this resolution. Such
receiver shall have no power to sell, assign, mortgage or otherwise
dispose of any assets of any kind or character belonging or pertaining
to such Water and Sewer System, except as provided in Section 3.0~(E)
hereof, but the authority of such receiver shall be limited to the
possession, operation and maintenance of the Water and Sewer System
for the sole purpose of the protection of both the City and said
Bondholders.
The holder or holders of Bonds in an aggregate principal
amount of not less than twenty-five per centum (25~) of Bonds issued
under said Original Resolution or this resolution then outstanding
may by a duly executed certificate in writing appoint a trustee for
holders of Bonds issued pursuant to said Original Resolution and this
resolution, with authority to represent such Bondholders in any legal
proceedings for the enforcement and protection of the rights of such
Bondholders. Such certificate shall be executed by such Bondholders
or their duly authorized attorneys or representatives and shall be
filed in the office of the City Clerk.
(N) ENFORCEMENT OF COLLECTIONS. That the City will dili-
gently enforce and collect, or cause to be enforced and collected, all
rates, fees, rentals or other charges for the services and facilities
of the Water and Sewer System, and take all steps, actions and pro-
ceedings for the enforcement and collection of such fees, rentals
or other charges, which shall become delinquent to the full extent
permitted or authorized by the Act and by the laws of the State of
Florida.
Charges for the use of the services and facilities of the
Sewer System shall be made and rendered on the same bill as the charges
for the use of water services and the City further covenants and agrees
that, to the extent permitted by law, it will discontinue, or cause
the discontinuance of, the furnishing of both water services and sewer
services to all delinquent users of said Water and Sewer System until
all delinquent rates, fees, rentals or other charges, together with
reasonable interest and other penalties, have been fully paid and
discharged, and shall adopt, or cause to be adopted, reasonable rules
and regulations governing the discontinuance of water services and
sewer services to delinquent users of said Water and Sewer System, in-
cluding interest and penalties, and charges for the restoration of
water services and sewer services when all delinquent rates, fees,
rentals or other charges, together with interest and penalties, have
been fully paid and discharged, in the manner provided by the Act and
by the laws of the State of Florida.
(0) CONNECTIONS WITH SEWER SYSTEM. That the City wilt, to
the full extent permitted by law, require all lands, buildings and
structures within the City which can use the facilities and services
of the portion of the Water and Sewer System constituting the sewer
system, to connect with and use the facilities and services of such
sewer system, and to cease all other means and methods for the collec-
tion, purification, treatment and disposal of sewage and waste matter.
Section 3.05. CONSULTING ENGINEERS. That the City will
retain Russell & Axon, Engineers, of St. Louis, Missouri, or other
qualified and recognized engineers, to supervise the construction, ac-
quisition and installation of the additions, extensions and improvements
to the Sewer System of the combined Water and Sewer System authorized
by this resolution; and after the completion thereof the City will
retain on an annual basis said Russell & Axon, Engineers, of St. Louis,
Missouri, or other qualified and recognized engineers, to inspect and
make an annual report of said Water and Sewer System and the operation
and management thereof, and to generally Supervise the operation and
maintenance of said Water and Sewer System and to perform the duties
relating thereto provided for in said Original Resolution and this
resolution.
Section 3.06. NO COMPETING SYSTEM. To the full extent
permitted by law, the City will not grant, or cause, consent to or
allow the granting of, any franchise or permit to any person, firm,
corporation or body, or agency or instrumentality whatsoever, for
the furnishing of water or sewer services to or within the City of
Boynton Beach.
Section 3.07. MAINTENANCE OF F}'~ANCHISE WITH TOWN OF OCEAN
RIDGE. That the City will continue to maintain and perform the terms
of the franchise with the Town of Ocean Ridge, and will not rescind,
or consent to, or permit the rescission of, said franchise, or alter
or modify, or consent to or permit the alteration or modification
of, said franchise in any way which will materially and adversely
affect the rights and security of the holders of Bonds issued pursuant
to said Original Resolution and this resolution.
-49-
ARTICLE IV
MISCELLANEOUS PROVISIONS
Section ~.01~ MODIFICATION OR AMENDMENT. No material
modification or amendment of this resolution or of any ordinance
or resolution amendatory thereof or supplemental thereto, may be
made without the consent in writing of the holders of two-thirds or
more in principal amount of the Bonds then outstanding~ provided, how-
ever, that no modification or amendment shall permit a change in the
maturity of such Bonds or a reduction in the rate of interest thereon,
or in the amount of the principal obligation or affecting the uncon-
ditional promise of the City to fix, maintain and collect rates, fees,
rentals and other charges for said Water and Sewer System, or to pay
the principal of and interest on the Bonds, as the same mature and
become due, from the revenues of the Water and Sewer System, or reduce
such percentage of holders of such Bonds required above for such
modifications or amendments, without the consent of the holders of
such Bonds.
Section 4.02 SEVERABILITY OF INVALID PROVISIONS. If
any one or more of the covenants, agreements or provisions of this
resolution should be held contrary to any express provision of law
or contrary to the policy of express law, though not expressly pro-
hibited, or against public policy, or shall for any reason whatsoever
be held invalid, then such covenants, agreements or provisions shall
be null and void and shall be deemed separate from the remaining
covenants, agreements or provisions, and shall in no way affect the
validity of all the other provisions of this resolution or of the
Bonds or coupons issued hereunder.
Section 4.03. VALIDATION AUTHORIZED. That Gene Moore,
Esquire, City Attorney, be and he is hereby authorized and directed
to prepare and institute proceedings in the Circuit Court of the
Fifteenth Judicial Circuit of Florida, in and for Palm Beach County,
to validate and confirm the issuance of the Bonds authorized by this
-50-
resolution and all proceedings and actions taken relating thereto.
Section ~.0~. ISSUANCE AND SALE OF BONDS. That said
Bonds shall be issued and sold in such manner and at such price or
prices consistent with the terms of this resolution and the Act as
the City Council shallihereafter determine.
Section 4.05. EFFECTI~E DATE. This resolution shall take
effect upon its passage in the manner provided by law, and further,
upon receipt by the City of the consent in writing of the holders of
two-thirds or more in principal amount of the Outstanding 1960 Bonds,
issued pursuant to said Original Resolution, to the resolution,
adopted on F~g~ ~ , 1962, amending the provisions of Section
3.04 (L) of said Original Resolution.
PASSED AND ADOPTED lhis
1962.
day of
(CORPORATE SEAL)
A TTEST:~<~
~ City Clert~
CITY OF. BOYNTON ~EAC~
f Miyor
FLORIDA
Councilman
~! .... ' .....
Councilman
Councilman
-51-
AGREEMENT 4ND CONSENT OF BONDHOLDER
Re:
City of Boynton Beach, Florida
$1,370,000 Water Revenue Bonds, Series 1960,
dated December l, 1960
~, (The)~£~ ~£Ty'~'~J~ry~ ~Q., being the holder of out-
standing bond(s) of an issue of $1,370,000 Water Revenue Bonds, Series
1960, dated December l, 1960, issued pursuant to a resolution entitled:
"A RESOLUTION AUTHORIZING THE CONSTRUCTION AND ACQUISITION OF ADDITIONS,
EXTENSIONS AND IMPROVEMENTS TO THE WATER SYSTEM OF THE CITY OF BOYNTON
BEACH, ~LORIDA; AUTHORIZING THE ISSUANCE OF $1,370,000 WATER REVENUE
BONDS, SERIES 1960, TO FINANCE THE COST OF SUCH ADDITIONS, EXTENSIONS
AND IMPROVEMENTS; PLEDGING THE REVENUES OF SAID WATER SYSTEM TO THE
PAYMENT OF SUCH WATER REVENUE BONDS, SERIES 1960, AND PROVIDING FOR iTRE
RIGHTS AND REMEDIES OF THE HOLDERS THEREOF" adopted by the City ~Council
of the City of Boynton Beach, Florida on January ll, 1961, as amended
resolutions adopted by said City Council on February 6, 1961 and May 15,
1961, said outstanding bond(s) being described as follows:
AmoUnts and Years
Total Amount of Maturities
zZ£
Numbers
do (does) hereby irrevocably consent and agree to the amendment of said
resolution as set forth in the resolution adopted by the City council
of the City of Boynton Beach, Florida, on F. ebr~aryl2, 1962, a copy of
which is annexed hereto as Exhibit "A" and incorporated herein as if
set forth at length.
Date: ~-Z$ /~ /,~Z Signature of Ow~.,a~v,c~~~//~~--~L~
Owner II~U
Address /S/
A RESOLUTION FURTHER AMENDING A RESOLUTION
ENTITLED: "A RESOLUTION AUTHORIZING THE
CONSTRUCTION AND ACQUISITION OF ADDITIONS,
EXTENSIONS AND IMPROVEMENTS TO THE WATER
SYST~4 OF THE CITY OF BO~TON BEACH, FLORIDA~
AUTHORIZING THE ISSUANCE OF $1,370,000 WATER
REVENUE BONDS, SERIES 1960, TO FINANOE THE
COST OF SUOH ADDITIONS, EXTENSIONS AND IM-
PROVEMENTS ~ PLEDGING THE REVENUES OF SAID
WATER SYSTEM TO THE PAYMENT OF SUCH WATER
REVENUE BONDS, SERIES 1960, AND PROVIDING
FOR THE RIGHTS AND R~EDIES OF THE HOLDERS
THEREOF", AS AMENDED.
WHEREAS, by resolution heretofore duly adopted on the llth
day of January, 1961 and entitled: "A RESOLUTION AUTHORI ING THE
CO..S~RU~TION AND ~.CQUISITION OF ADDITIONS, EXTENSIONS AND IMPROVE-
MENTS TO THE WATER SYSTEM OF THE CITY OF BOYNTON BEACH, FLORIDA;
AUTHORIZING THE ISSUANCE OF $1,370~000 WATER REVENUE BONDS, SERIES
1960, TO FINANCE THE COST OF SUCH ADDITIONS, EXTENSIONS AND IMPROVE~-
MENTS-; PLEDGING THE REVENUES OF SAID ~.;ATER S¥STEM TO THE PAYME~ OF
SUCH WATER REVENUE BONDS, SERIES 1960, AND PROVIDING FOR THE RIGHTS
AND REMEDIES OF THE HOLDERS THEREOF" as amended by resolutions adopted
on February 6, 1961 and May 15, 1961 (hereinafter collectively re-
ferred to as "Resolution") the City Council has authorized the
issuance of $1,370,000 Water Revenue Bonds, Series 1960, dated
December l, 1960 (hereinafter sometimes called the "Bonds")~ and
WHEREAS, the Bonds have been heretofore validated and
sold and are now outstanding; and
WHEREAS, it is deemed advisable and in the best interests
of the City of Boynton Beach, and the inhabitants thereof, to amend
the Resolution with respect to the issuance of additional parity
Bonds~ and
WHEREAS, it will be necessary to obtain the consent in
writin§ of the holders of two-thirds or more in principal amount of
said Bonds in order to amend said Reso]utEen; now, therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY O~ BOYNTON
BEACH, FLORIDA:
Section 1. That Subsection (L) of Section 3.04 of the
resolution, as amended, entitled: "A RESOLUTION AUTHORIZING THE
CONSTRUCTION AND ACQUISITION OF ADDITIONS, EXTENSION'S AND IMPROVE-
MENTS TO THE WATER SYSTEM OF THE CITY OF BOYNTON BEACH, FLORIDA
AUTHORIZING THE ISSUANCE OF $1,370,000 WATER REVENUE. BONDS, SERIES
1960, TO FINANCE THE COST OF SUCH ADDITIONS, EXTENSIONS AND IM-
PROVEMENTS ; PLEDGING THE REVENUES OF SAID WATER SYSTEM TO THE
PAYMENT OF SUCH WATER REVENUE BONDS, SERIES 1960, AND PROVIDING
FOR THE RIGHTS AND REMEDIES OF THE HOLDERS THEREOF" be, and the
same is, hereby amended to read as follows:
"(L) ISSUANCE OF PARI PASSU ADDITIONAL BONDS. That
no pari passu additional Bonds, as in this subsection defined,
payable pari passu with Bonds issued pursuant to this resolution
out of the revenues of the Water System shall be issued after the
issuance of any Bonds pursuant to this resolution, except upon
the conditions and in the manner herein provided.
Pari passu additional Bonds payable from the net revenues
of the Water System may be issued by the City for the purpose of
financing the construction and acquisition of additions, extensions
and improvements to the City's Water System, or for the construc-
tion or acquisition of a sewage disposal system, or additions,
extensions and improvements thereto, only if the average annual
net revenues of the Water System during the immediately preceding
twenty-four (24) complete calendar months, or the net revenues of
the Water System during the immediately preceding twelve (12) com-
plete calendar months, whichever is the lesser, as certified by
the Consulting Engineers, shall be equal to not less than one
hundred for~ per centum (140%) of the largest amount of principal
and interest which will mature and become due in any succeeding year
thereafter on: (1) the Bonds theretofore issued pursuant to this
resolution, including any pari passu additional Bonds theretofore
issued, then outstanding; (2) the pari passu additional Bonds
proposed to be issued; and (3) any obligations then outstanding
payable from and having a prior and senior lien on the net reven-
ues of the Water System, including the Outstanding Bonds and Out-
standing Contractors Refunding Agreements.
In determining the amount of net revenues for the pur-
poses of the above paragraph, the ConsultingEngineers may adjust
net revenues by adding thereto the following:
-2-
(1) The net revenues (computed for such facility on
the same basis as net revenues are computed for the Water System)
of any water or sewer utility which the City might have constructed
or acquired previous to the i~suance of such part passu additional
Bonds or which the City shall be acquiring from proceeds of such
pari passu additional Bonds, and which, in the case of the acqui-
sition thereof, ha~ been operatim$ for a part cf the s~m~ ba~e
period or periods;
(2) In the event a change has been made in the rate
schedules for services from the Water System prior to the issuance
of the proposed pari passu add!tioga! ~onds for a part of the
same base period or periods an~ such change has resulted in an
increase in net revenues, seventy-five per cent (75%) of an e~ti-
mate made by such Consulting Zn§ineers of such additional net
revenues for the same base period or periods;
(3) In the event the City shall have combined or
authorized the combination of a s~er utility with the Water
System and shall have established sewer rates or charges to be
charged and collected from users of such sewer utility when ser-
vice is rendered, seventy-five p~r ce~ ~7~%) of the net revenues
estimated by the Consulting Engineers to be derived during the
first twelve months of operation after completion of the construc-
tion or acquisition of s~id sewer utility, or mddittons, exten-
sions and improvements thereto, from the proposed users of the
sewer utility or part thereof to be financed by pari passu addi-
tional bonds together with other funds on hand or lawfully obtained
for such purpose and deposited in a Construction Trust ~und to be
established for such purpose, which are then actual customers of
the Water System of the City.
If the City shall h~ve constructed or acquired a sewage
disposal system or part thereof mhd shall have co~foined, or shall
authorize the combination of the same with its Water System, and
shall pledge the net r~enues from such sewage disposal system
or part thereof to the payment of said pari passu additional Bonds
proposed to be issued, then the term "Water System" shall be deemed
-3-
to include such sewage disposal system or part thereof so con-
structed or acquired and the revenues derived by the City from
the operation of the same shall be deemed to be included in the
revenues of said Water System.
For the purpose of computing "the largest amount of
principal and interest maturing and becoming due in any succeeding
year", the amounts provided to be deposited in the Bond Redemption
Account, in each year, pursuant to the provisions of this resolu-
tion or any resolution amendatory .hereof or supplemental hereto for
the purpose of paying the principal of term Bonds prior to maturity
and for which no serial maturities have been provided shall be
deemed to be serial maturities, and the amount of principal mater-
lng in the year 1993 or in any other year for such term Bonds shall
not be computed.
For the purpose of this subsection (L), the phrase
"bonds theretofore issued pursuant to this resolution", shall be
deemed to include the $1,370,000 Bonds originally authorized to
be issued pursuant to this resolution, and also any additional
pari passu bonds theretofore ~ sued under the conditions and in
the manner provided in this subsection (L).
The term, "pari passu additional Bonds",~s used in
this subsection (L), shall be deemed to mean additional obli-
gations evidenced by Bonds issued under the provisions and within
the limitations of this subsection payable from net revenues of
the Water SyStem, as hereinbefore authorized, pari passu with
Bonds originally authorized and issued pursuant to this resolu-
tion. Such Bonds shall be deemed to have been issued pursuant
to this resolution the same as the Bonds originally authorized
and issued pursuant to this resolution, and all of the covenants
and other provisions of this resolution (except as to details of
such Bonds evidencing such pari passu additional obligations
consistent therewith), shall be for the equal benefit, protection
and security of the holders of any Bonds originally authorized and
issued pursuant to this resolution and holders of any Bonds evi-
dencing additional obligations subsequently issued within the
-4-
limitations of and in compliance with this subsection. Ail of
such Bonds regardless of the time or times of their issuance
shall rank equally with respect to their lien on and source and
security for payment from the net revenues of ~=~ch Water System
without preference of any Bonds or coupons over any other.
The term, "pari passu additional Bonds", as used in
this subsection (L), shall not be deemed to include bonds, notes,
certificates or other obligations subsequently issued, the lien
of which on the revenues of the Water System is subject to the
prior and superior lien on such revenues of Bonds issued pur-
suant to this resolution, and the City shall not issue any
obligations whatsoever payable from the revenues of the Water
System which rank equally as to lien on and source and security
for payment from such revenues with Bonds issued pursuant to this
resolution, except in the manner and under the conditions pro-
vid~d in this subsection (L).
Mo pari passu additional Bonds, as in this subsection
(L) defined, shall be issued at any time, however, unless all
of the payments into the respective funds provided for in this
resolution on Bonds then outstanding, and all other sinking
fund, reserve or other payments provided for in this resolution
shall have been made in full to the date of issuance of said
pari passu additional Bonds, and the City shall have fully
complied with all the covenants, agreements and terms of this
resolution".
Section 2. This resolution shall become effective
i~mediately upon its being consented to by the holders of two-
thirds or more in principal amount of the outstanding Water
Revenue Bonds, Series 1960, authorized by the Resolution to
which this resolution is amendatory.
AGREEMENT AND CONSENT OF BONDHOLDER
Re: City of Boynton Beach, Florida
$1,370,000 Water Revenue Bonds, Series 1960,
Dated December 1, 1960
The Pilot Life Insurance Company, being the holder of outstanding
bond (s) of an issue of $1,370,000 Water Revenue Bonds, Series 1960,
dated December 1, 1960, issued pursuant to a resolution entitled: "A
RESOLUTION AUTHORIZING THE CONSTRUCTION AND ACQUISITION OF ADDITIONS,
EXTENSIONS AND IMPROVEMENTS TO THE WATER SYSTEM OF THE CITY OF BOYNTON
BEACH~ FLORIDA: AUTHORIZING THE ISSUANCE OF $1,$70,000 WATER REVENUE
BONDS~ SERIES 1960, TO FINANCE THE COST OF SUCH ADDITIONS, EXTENSIONS
AND IMPROVEMENTS: PLEDGING THE REVENUES OF SAID WATER SYSTEM TO THE
PAYMENT OF SUCH WATER REVENUE BONDS, SERIES 1960, AND PROVIDING FOR THE
RIGHTS AND REMEDIES OF THE HOLDERS THEREOF" adopted by the City Council
of the City of Boynton Beach, Florida, on January il, 1961, as amended
by resolutions adopted by said City Council on February 6, 1961 and
May 15, 1961, said outstanding bond (s) being described as follows:
Total Amount Amounts ~ Years of Maturities Numbers
$175,000 $175,000 1993 721/870
1171/1195
do (does) hereby irrevocably consent and agree to the amendment of said
resolution as set forth in the resolution adopted by the City Council
of the City of Boynton Beach, Florida, on February 12, 1962, a copy of
which is annexed hereto as Exhibit "A" and incorporated herein as if
set forth at length.
Date:
February 19, 1962
Vice Pr esi~[ent
Address:
P. O. Box P, Greensboro,
North Carolina
A RESOL'JTION FURTHER ~2.1E.I,JDiN?, A RESOLUTION
ENTITLED: "A RESOLUTION ~UTHDR!ZiUG THE
CONSTRUCTION AND ACQUi~STiC. N OF ADDIT!ON3,
EXTENSIOn,S AND i!{PRO~f~I!4E~/TS TO Tiie
SYST~'I OF THv CETY OV ~ '~ .......
~0..,.~:~ pz',~ CT.' FLORIDA
AUTHORIZ~TG Tiie iSglMCiCE OF $1,370,000
REVENUE BCI~'DS, SEilT;'~ 19(.0, TO i.'EJf&NCE THE
COST OF SUSH ADDiT!Oi~S, EKTENSiOI~S Ai~D !~I-
PIOV~:4EKTS; PLEDGi~OiG TIlE RETE!~UES OF SAiD
WATER SYST~4 TO THE FAINEi~T OF SUGI{ NATER
REVENUE DO~!PS, SERIES 1960, AND
FOR THE RIGHTS AND R~:IEDiES OF THE IIOLDERS
THEREOF" ~ AS
WHERE~S~ by resolution he;:atofore duly adopted on the llth
....... t ~ .... d: ~'~" ~
day of January, 1961 ¢~-,~ ~ -'-I~ "A P.E~O!:UTION AU~:~O,xI lNG THE
C07CTZUf]TIOM A.UD ~.CQUiSiTION O'ff ADDITIONS, E~,T=~.~.o.~ONS AND
M~TS TO THE ,'.AT=R SYSTat OF THE CITY OF ~OFNTOY BEACH,
A~HORIZ!NG THE iSSU~2~CE O? 21,370,C00 WATER EE.,,,~{U~ BOi~DS, SERIES
1960, TO FINANCE THE COST OF MUCII ADDITIONS, EXTENSIONS AND ~FROVE--
M~TS-; PLEDGING T~ pp'~Tpt~U~,,~.,.~,_~ OF SAID WATE2o.o~_~,., ~ .... ~' TO THE PA~.~.{E~.,T ..... CF
SUCH WATER REVE~UJE BONDS= SERIES 1960, AND PROVIDII!G FCR TI~ RIG~S
A~%D REMEDIES OF THE HOL..,~Ro TtiEREOi."' as amended by resolutions adopted
on February 6, 1961 and May 15, 1961 (hereinafter collectively re-
ferred to as "Resolution") the City Council has authorized the
issuance of $1,370,000 Water Revenue Bonds, Series 1960, dated
December 1, 1960 (hereinafter sometimes called tn_ "Bonds"); and
W~REAS, the Bonds have been heretofore validated and
sold and are now outstanding; and
WHER~S, it is deemed advisable and in the best interests
of the City of Boynton Beach, and the i~abitants thereof, to amend
the Resolution with respect to the issuance of additional parity
Bonds; and
WHER~S, it will be necessary to obtain the consent in
writing of the holders of two-thirds or more in principal amount of
said Bonds in order to a~end s~.id Resz. iTti~"?.:.; pow= therefore
BE %T RESOLVED BY THE GIT! CO~qC!L OF THE CITY ~
B~.CH, ~ORIDA:
Section 1. That Subsection (L) of Section 3.04 of the
resolution, as amended, entitled: "A RESOLUTION A~HOR!ZING TIIE
CONSTRUCTION AND ACQUISITION OF ADDITIONS, EXTENSIONS AND
MENTS TO THE WATER SYSTEM OF THE CiTY OF BOYi~OI] g~CH, FLORIDA ;
AUTHORIZING T~ ISSUANCE OF $1,370,000 WATER R~TENUE BONDS, SERIES
1960, TO FINANCE THE COST OF SUCH ADDITIONS, EXTENSIONS AND IM-
PROVEMENTS ; PLEDGING THE REVENUES OF SAID WATER SYSTEM TO THE
PAYMENT OF SUCH WATER REVENUE BONDS, SERIES 1960, AND PROVIDING
FOR THE RIGHTS AND REMEDIES OF THE HgLDERS THEREOF" be, and the
same is, hereby amended to read as follows:
"(L) ISSUA[~flE OF PARI PASSU ADDITIONAL BONDS. That
no pari passu additional Bonds, as in this subsection defined,
payable pari passu with Bonds issued pursuant to this resolution
out of the revenues of the Nater System shall be issued after the
issuance of any Bonds pursuant to this resolution, except upon
the conditions and in the manner herein provided.
Pari passu additional Bonds payable from the net revenues
of the Water System may be issued by the City for the purpose of
financing the construction and acquisition of additions, extensions
and improvements to the City's Water System, or for the construc-
tion or acquisition of a sewage disposal system, or additions,
extensions and improvements thereto, only if the average annual
net revenues of the Water System during the immediately preceding
twenty-four (24) complete calendar months, or the net revenues of
the Water System during the immediately preceding twelve (12) com-
plete calendar months, whichever is the lesser, as certified by
the Consulting Engineers, shall be equal to not less than one
hundred for~ per centum (140%) of the largest amount of principal
and interest which will mature and become due in any succeeding year
thereafter on: (1) the Bonds theretofore issued pursuant to this
resolution, including any pari passu additional Bonds theretofore
issued, then outstanding; (2) the pari passu additional Bonds
proposed to be issued; and (3) any obligations then outstanding
payable from and having a prior and senior lien on the net reven-
ues of the Water System, including the Outstanding Bonds and Out-
standing Contractors Refunding Agreements.
In determining the amount of net revenues for the pur-
poses of the above paragraph, the ConsultingEngineers may adjust
net revenues by adding thereto the following:
-2-
(1) The net revenues (computed for such facility on
the same basis as net revenues are computed for the Water System)
of any water or sewer utility which the City might have constructed
or acquired previous to the issuance of such pari passu additional
Bonds or which the City shall be acquiring from proceeds of such
pari passu additional Bonds, and which, in the case of the acqui-
sition thereof, has been operating for a part of the same base
period or periods;
(2) In the event a change has been made in the rate
schedules for services from the Water System prior to the issuance
of the proposed pari passu additional Bonds for a part of the
same base period or periods a~d such change has resulted in an
increase in net revenues, seventy-five per cent (75%) of an esti-
mate made by such Consulting Engineers of such additional net
revenues for the same base period or periods;
(3) In the event the City shall have combined or
authorized the combination of a sewer utility with the Water
System and shall have established sewer rates or charges to be
charged and collected from users of such sewer utility when ser-
vice is rendered, seventy-five per ce~.~ (75%) of the net revenues
estimated by the Consulting Engineers to be derived during the
first twelve months of operation after completion of the construc-
tion or acquisition of s~id sewer utility, or additions, exten-
sions and improvements thereto, from the proposed users of the
sewer utility or part thereof to be financed by pari passu addi-
tional bonds together with other funds on hand or lawfully obtained
for such purpose and deposited in a Construction Trust ~und to be
established for such purpose, which are then actual customers of
the Water System of the City.
If the City shall h~ve constructed or acquired a sewage
disposal system or part thereof and shall have combined, or shall
authorize the combination of the same with its Water System, and
shall pledge the net revenues from such sewage disposal system
or part thereof to the payment of said pari passu additional Bonds
proposed to be issued, then the term "Water System" shall be deemed
-3-
to include such sewage disposal system or part thereof so con-
structed or acquired and the revenues derived by the City from
the operation of the same shall be deemed to be included in the
revenues of said Water System.
For the purpose of computing "the largest amount of
principal and interest maturing and becoming due in any succeeding
year", the amounts provided to be deposited in the Bond Redemption
Account, in each year, pursuant to the provisions of this resolu-
tion or any resolution amendatory hereof or supplemental hereto for
the purpose of paying the principal of term Bonds prior to maturity
and for which no serial maturities have been provided shall be
deemed to be serial maturities, and the amount of principal mat~r-
lng in the year 1993 or in any other year for such term Bonds shall
not be computed.
For the purpose of this subsection (L), the phrase
"bonds theretofore issued pursuant to this resolution", shall be
deemed to include the $1,370,000 Bonds originally authorized to
be issued pursuant to this resolution, and also any additional
part passu bonds theretofore ~ sued under the conditions and in
the manner provided in this subsection (L).
The term, "pari passu additional Bonds", ~ used in
this subsection (L), shall be deemed to mean additional obli-
gations evidenced by Bonds issued under the provisions and within
the limitations of this subsection payable from net revenues of
the Water System, as hereinbefore authorized, pari passu with
Bonds originally authorized and issued pursuant to this resolu-
tion. Such Bonds shall be deemed to have been issued pursuant
to this resolution the same as the Bonds originally authorized
and issued pursuant to this resolution, and all of the covenants
and other provisions of this resolution (except as to details of
such Bonds evidencing such pari passu additional obligations
consistent therewith), shall be for the equal benefit, protection
and security of the holders of any Bonds originally authorized and
issued pursuant to this resolution and holders of any Bonds evi-
dencing additional obligations subsequently issued within the
-4-
limitations of and in compliance with this subsection. Ail of
such Bonds regardless of the time or times of their issuance
shall rank equally with respect to their lien on and source and
security for payment from the net revenues of zuch Water System
without preference of any Bonds or coupons over any other.
The term, "pari passu additional Bonds", as used in
this subsection (L), shall not be deemed to include bonds, notes,
certificates or other obligations subsequently issued, the lien
of which on the revenues of the Water System is subject to the
prior and superior lien on such revenues of Bonds issued pur-
suant to this resolution, and the City shall not issue any
obligations whatsoever payable from the revenues of the Water
System which rank equally as to lien on and source and security
for payment from such revenues with Bonds issued pursuant to this
resolution, except in the manner and under the conditions pro-
vided in this subsection (L).
No pari passu additional Bonds, as in this subsection
(L) defined, shall be issued at any time, however, unless all
of the payments into the respective funds provided for in this
resolution on Bonds then outstanding, and all other sinking
fund, reserve or other payments provided for in this resolution
shall have been made in full to the date of issuance of said
pari passu additional Bonds, and the City shall have fully
complied with all the covenants, agreements and terms of this
resolution".
Section 2. This resolution shall become effective
~mediately upon its being consented to by the holders of two-
tn!rCs or more in principal amount of the outstanding Water
Revenue Bonds, Series 1960, authorized by the Resolution to
which this resolution is amendatory.
-5-
Re I .~lty of
$1,370,000
·ated Decem
AMD CONSENT OF BONDHOLX~R
· Florida
Revenue Bonds, Series 1960,
i960
l, (~he) ~ilot Life Insurance Compa, n~Ing the holder of ~ut-
standing bond(s) of~ issue of $1,370,000 Water Revenue Bon~s, &eries
1960, dated December .1, 1960, issued pursuant to a r~solution entitled l
"A RESOLgTION A~ING THE CONSTRUCTION AND AC~XSITION OF A~DIT~O~S,
· XT~XONS AND IMPRO~ TO THE WATER SYSTEX OF THE CITY OF BOYNTON
~ACH, FLORIDA; AU~IZXNG THE ISSUANCE OF $1,370,000 WA~ RB~
BO~, SERIES 1960, ~) FI/~CE ~ COST OF SUCH ADDITXON&~ ~~IO~
AND Id~PROVE~P~S; PI~ING THE RE"gEN~ OF SAID WA~R SYST~ TO ~
PAY~ OF SUCH WA~ p~~ BONDS, SERIES 1960, AND PROFXD~O ~OR T~
RIOH~ AND PL~DIE~ OF ~ HOLDERS T~O~" adopted by the City CourAoil
of the City of ~ynton ~ach, Florida on Januaz~ 11, 1961, as asserted by
resolutions adopted bT said City Council on February 6, 1961 ar~ ~y 1~
1961, said outstand~ bond(s) bein~ described as follows~
Amounts and Years
T__otal A~o.u~._t_ __ of Mat,,urit,le,s ~- ,Numbers
$175,0oo. 6/1/93
72i/87o//ii7i-ii95
do (does) hereby lrr~Voeably consent and agree to the amendment of eald
as set fo~ in the resolution adopted by the Clt~ Council
.~of ~he City of Boynto~Beach, Florida, on January 1962, a eop~ of
~hlch is annexed here~ as Exhibit
!i~;'aet forth at length
Date:
"A" and incorporated her~ln aa if
tddress,,p. ,,,O.,Drawer P
Greensboro~ N. C.
AGREEMENT 4ND CONSENT OF BONDHOLDER
Re: City of Boynton Beach, Florida
$1,370,000 Water Revenue Bonds, Series 1960,
dated December l, 1960
Jefferson Standard Life being the holder of out-
I, (The) Insurance Company ' ·
standing bond(s) of an issue of $1,370,000 Water Revenue Bonds, Series
1960, dated December l, 1960, issued pursuant to a resolution entitled:
"A RESOLUTION AUTHORIZING THE CONSTRUCTION AND ACQUISITION OF ADDITIONS,
EXTENSIONS AND IMPROVEMENTS TO THE WATER SYSTEM OF THE CITY OF BOYNTON
BEACH, FLORIDA; AUTHORIZING THE ISSUANCE OF $1,370,000 WATER REIrENUE
BONDS, SERIES 1960, TO FINANCE THE COST OF SUCH ADDITIONS, EXTENSIONS
AND IMPROVEMENTS; PLEDGING THE REVENUES OF SAID WATER SYSTEM TO THE
PAYMENT OF SUCH WATER REVENUE BONDS, SERIES 1960, AND PROVIDING FOR THE.
RIGHTS AND REMEDIES OF THE HOLDERS THEREOF" adopted by the City~Council
of the City of Boynton Beach, Florida on January ll, 1961, as amended by
resolutions adopted by said City Council on February 6, 1961 and May 15,
1961, said outstanding bond(s) being described as follows:
Total Amount
Amounts and Years
of MatUrities
$350,000 $350,000 6-1-93
Numbers
671 thru 720
871 th~u 1170
do (does) hereby irrevocably consent and agree to the amendment of said
resolution as set forth in the resolution adopted by the City Council
of the City of Boynton Beach, Florida, on Eebr~aryl2, 1962, a copy of
which is annexed hereto as Exhibit "A" and incorporated herein as if
set forth at length.
Date:February 16, 1962
Signature of
Address
Vice President
Owner Jefferson Standard Life
Insurance Company
Greensboro
North Carolina
A RESOLUTION FURTHER ~RMENDING A RESOLUTION
ENTITLED: "A RESOLUTION AUTHORIZING THE
CONSTRUCTION AND ACQUICiTIO},~ OF ADDITIONS,
EXTENSIONS A[~D IMPP. OV?2'~ENTS TO THE WATER
SYSTE~ OF T}:E CITY OF BOY'alTON BEACH, FLORIDA;
AUTHORIZING TEE !SSUA}ICE OF $1,370,000 WATER
REVENUE BONDS, SERIES 1960, TO FINANCE THE
COST OF SUCII ADDITIO~7S, EXTENSIONS AND
PROVEME~ITS; PLEDGING THE REVENUES OF SAID
WATER SYST~24 TO THE PA~E>~T OF SUCH WATER
REVENUE BONDS, SERIES 1960, AND PROVIDING
FOR THE RIGHTS AND R~,{EDIES OF THE HOLDERS
THEREOF"~ AS AMENDED.
WHEREAS, by resolution heretofore duly adopted on the llth
day of January, 1961 and entitled: "A RESOLUTION AUTHORI'. ING THE
CO:fSTRUCTION AND ACQUISITION OF ADDITIONS, EXTENSIONS AND ]/~PROVE-
MENTS TO THE WATER SYST~{ O~ THE CITY OF BOYNTON BEACH, FLORIDA;
AUTHORIZING THE ISSUAI~CE OF $1,370,000 WATER REVENUE BONDS, SERIES
1960, TO FINANCE THE COST OF SUCH ADDITIONS, EXTENSIONS AND IMPROVE~
MENTS'; PLEDGING THE REVENUES OF SAID WATER SYSTEM TO THE PAI~E~ OF
SUCH WATER REVENUE BONDS, SERIES 1960, AND PROVIDING FOR THE RIG. S
AND REMEDIES OF THE HOLDERS THEREOF" as amended by resolutions adopted
on February 6, 1961 and May 15, 1961 (hereinafter collectively re-
ferred to as "Resolution") the City Council has authorized the
issuance of $1,370,000 Water Revenue Bonds, Series 1960, dated
December 1, 1960 (hereinafter sometimes called the "Bonds"); and
WHEREAS, the Bonds have been heretofore validated and
sold and are now outstanding; and
WHEREAS, it is deemed advisable and in the best interests
of the City of Boynton Beach, and the inhabitants thereof, to amend
the Resolution with respect to the issuance of additional parity
Bonds; and
WHEREAS, it will be necessary to obtain the consent in
writing of the holders of two-thirds or more in principal amount of
said Bonds in order to amend said Reso!~ticm; now, therefore
BE IT RESOLVED 3Y THE CITY COUNCIL OF THE CITY OF BOYNTON
BEACH, FLORIDA:
Section 1. That Subsection (L) of Section 3.04 of the
resolution, as amended, entitled: "A RESOLUTION AUTHORIZING THE
CONSTRUCTION AND ACQUISITION OF ADDITIONS, EXTENSIONS AND IMPROVE-
MENTS TO THE WATER SYSTEM OF THE CITY OF BOYNTON BEACH, FLORIDA ;
AUTHORIZING THE ISSUA~CE OF $1,370,000 WATER REVENUE BONDS, SERIES
1960, TO FINANCE THE COST OF SUCH ADDITIONS, EXTENSIONS AND IM-
PROVEMENTS ; PLEDGING THE REVENUES OF SAID WATER SYSTEM TO THE
PAYMENT OF SUCH WATER REVENUE BONDS, SERIES 1960, AND PROVIDING
FOR THE RIGHTS AND REMEDIES OF THE HOLDERS THEREOF" be, and the
same is, hereby amended to read as follows:
"(L) ISSUANCE OF PARI PASSU ADDITIONAL BONDS. That
no pari passu additional Bonds, as in this subsection defined,
payable pari passu with Bonds issued pursuant to this resolution
out of the revenues of the Water System shall be issued after the
issuance of any Bonds pursuant to this resolution, except upon
the conditions and in the manner herein provided.
Pari passu additional Bonds payable from the net revenues
of the Water System may be issued by the City for the purpose of
financing the construction and acquisition of additions, extensions
and improvements to the City's Water System, or for the construc-
tion or acquisition of a sewage disposal system, or additions,
extensions and improvements thereto, only if the average annual
net revenues of the Water System during the immediately preceding
twenty-four (24) complete calendar months, or the net revenues of
the Water System during the i~ediately preceding twelve (12) com-
plete calendar months, whichever is the lesser, as certified by
the Consulting Engineers, shall be equal to not less than one
hundred for~ per centum (140%) of the largest amount of principal
and interest which will mature and become due in any succeeding year
thereafter on: (1) the Bonds theretofore issued pursuant to this
resolution, including any pari passu additional Bonds theretofore
issued, then outstanding; (2) the pari passu additional Bonds
proposed to be issued; and (3) any obligations then outstanding
payable from and having a pricv and senior lien on the net reven-
ues of the Water System, including the Outstanding Bonds and Out-
standing Contractors Refunding Agreements.
In determining the amount of net revenues for the pur-
poses of the above paragraph, the ConsultingEngineers may adjust
net revenues by adding thereto the following:
-2-
(1) The net revenues (computed for such facility on
the same basis as net revenues are computed for the W~ter System)
of any water or sewer utility which the City might have constructed
or acquired previous to the issuance of such peri passu additional
Bonds or which the City shall be acquiring from proceeds of such
peri passu additional Bonds, and %~hich, in the case of the acqui-
sition thereof, has been operating for a part of the same ba3e
period or periods;
(2) In the event a change has been made in the rate
schedules for services from the Water System prior to the issuance
of the proposed peri passu additional Bonds for a part of the
same base period or periods and such change has resulted in an
increase in net revenues, seventy-five per cent (75%) of an esti-
mate made by such Consulting Engineers of such additional net
revenues for the same base period or periods;
(3) In the event the City shall have combined or
authorized the combination of a sewer utility with the Water
System and shall have established se~er rates or charges to be
charged and collected from users of such sewer utility when ser-
f"~z5 of the net revenues
vice is rendered, seventy-five -~o'~'~. ~. cart .... . .
estimated by the Consulting Engineers to be derived during the
first twelve months of operation after completion of the construc-
tion or acquisition of s~id sewer utility, or additions, exten-
sions and improvements thereto, from the proposed users of the
sewer utility or part thereof to be financed by peri passu addi-
tional bonds together with other funds on hand or !a%Tfully obtained
for such purpose and deposited in a Construction Trust ~und to be
established for such purpome, ~ich are then actual customers of
the Water System of the City.
If the City shall h~ve constructed or acquired a sewage
disposal system or part thereof and shall have co~oined, or shall
authorize the combination of the same with its l~ater System, and
shall pledge the net revenues from such sewage disposal system
or part thereof to the payment of said peri passu additional Bonds
proposed to be issued, then the term "Water System" shall be deemed
-3-
to include such sewage disposal system or part thereof so con-
structed or acquired and the revenues derived by the City from
the operation of the same shall be deemed to be included in the
revenues of said Water System.
For the purpose of computing "the largest amount of
principal and interest maturing and becoming due in any succeeding
year", the amounts provided to be deposited in the Bond Redemption
Account, in each year, pursuant to the provisions of this resolu-
tion or any resolution amendatory .hereof or supplemental hereto for
the purpose of paying the principal of term Bonds prior to maturity
and for which no serial maturities have been provided shall be
deemed to be serial maturities, and the amount of principal matar-
ing in the year 1993 or in any other year for such term Bonds shall
not be computed.
For the purpose of this subsection (L), the phrase
"bonds theretofore issued pursuant to this resolution", shall be
deemed to include the $1,370,000 Bonds originally authorized to
be issued pursuant to this resolution, and also any additional
pari passu bonds theretofore ~ sued under the conditions and in
the manner provided in this subsection (L).
The term, "pari passu additional Bonds'', ~ used in
this subsection (L), shall be deemed to mean additional obli-
gations evidenced by Bonds issued under the provisions and within
the limitations of this subsection payable from net revenues of
the Water System, as hereinbefore authorized, pari passu with
Bonds originally authorized and issued pursuant to this resolu-
tion. Such Bonds shall be deemed to have been issued pursuant
to this resolution the same as the Bonds originally authorized
and issued pursuant to this resolution, and all of the covenants
and other provisions of this resolution (except as to details of
such Bonds evidencing such pari passu additional obligations in-
consistent therewith), shall be for the equal benefit, protection
and security of the holders of any Bonds originally authorized and
issued pursuant to this resolution and holders of any Bonds evi-
dencing additional obligations subsequently issued within the
-4-
limitations of and in compliance with this subsection. Ail of
such Bonds regardless of the time or times of their issuance
shall rank equally with respect to their lien on and source and
security for payment from the net revenues of "':ch Water System
without preference of any Bonds or coupons over any other.
The term, "pari passu additional Bonds", as used in
this subsection (L), shall not be deemed to include bonds, notes,
certificates or other obligatioms subsequently issued, the lien
of which on the revenues of the Water System is subject to the
prior and superior lien on such revenues of Bonds ~.ssued pur-
suant to this resolution, and the City shall not issue any
obligations whatsoever payable from the revenues of the Water
System which rank equally as to lien on and source and security
for payment from such revenues with Bonds issued pursuant to this
resolution, except in the manner and under the conditions pro-
vide4 in this subsection (L).
No pari passu additional Bonds, as in this subsection
(L) defined, shall be issued at any time, however, unless all
of the payments into the respective funds provided for in this
resolution on Bonds then outstanding, and all other sinking
fund, reserve or other payments provided for in this resolution
shall have been made in full to the date of issuance of said
pari passu additional Bonds, and the City shall have fully
complied with all the covenants, agreements and terms of this
resolution".
Section 2. This resolution shall become effective
immediately upon its being consented to by the holders of two-
thirds or more in principal amount of the outstanding Water
Revenue Bonds, Series 1950, authorized by the Resolution to
which this resolution is amendatory.