R66-SSRESOLUTION NO. 66 ~- SS
A RESOLUTION OF THE CITY OF BOYNTON BEACH,
FLORIDA, PROVIDING FOR THE CONSTRUCTION AND
INSTALLATION OF CERTAIN STORM DRAINAGE
FACILITIES ON NORTH SECOND AVENUE, WITHIN
SAID MUNICIPALITY, IN CONJUNCTION WITH A
JOINT PROJECT BETWEEN THE CITY AND THE
FLORIDA STATE ROAD DEPARTMENT; AND
PROVIDING FURTHER FOR THE ISSUANCE OF
REVENUE C~RTIFICATES OF SAID CITY IN AN
AMOUNT NOT EXCEEDING $160,000.00FOR THE
ABOVE PURPOSE, AND FOR THE PAYMENT
THEREOF FROM REVENUES DERIVED SOLELY FROM
THE EXISTING CIGARETTE EXCISE TAX IMPOSED
BY SAID CITY; AND FOR OTHER PURPOSES.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BOYNTON
BEACH, FLORIDA:
Section 1. AUTHORITY
This Resolution is adopted pursuant to the provisions of the Charter
of the City of Boynton Beach, Florida, as amended and supplemented,
the existing ordinances of said municipality, and the Statutes of the
State of Florida in such cases made and provided.
Section 2. FINDINGS
It is hereby ascertained, determined and declared:
(a) That a public need presently exists for the immediate
construction and installation of certain storm drainage facilities on
North Second Avenue, within said municipality, in conjunction with
a joint project between the City and the Florida State Road Depart-
rnent, for the general health, safety, welfare and benefit of the
inhabitants of the City of Boynton Beach, Florida.
(b) That the City of Boynton Beach, Florida, presently
derives revenue and income from its existing cigarette excise tax
imposed pursuant to the provisions of the ordinances of the City of
Boynton Beach, Florida, under the authority of Chapter 210 of the
Florida Statutes, which revenue is in the total approximate amount
of $150,000.00 per annum.
(c) Thai the First Bank of Boynton Beach, Florida, has
committed to purchase from the City of Boynton Beach, revenue
certificates to be issued by said City in a sum not exceeding $160,000.00
at an interest rate of 4.75% per annum, payable in seven (7)equal
annual installments of principal together with inlerest on the unpaid
principal balance for the purpose of allowing the municipality to
proceed with the above-described project and to secure the payment
of said revenue certificates solely from the income to be derived from
the above-described cigarette excise tax.
NOW, THEREFORE, be it further resolved by the City Council
of the City of Boynton Beach, Florida, as follows:
(1) Thai there is hereby authorized the issuance of a revenue
certificate or certificates in a total aggregate amount not to exceed
$160,000. ~0 at an interest rate not to exceed 4.75% per annum, payable in
Seven ~ y~- equal annual installmenls of principal together with accrued
interest on the unpaid principal balance of said debt, as of the date of
said annual principal payment, for the purpose of constructing and
installing certain storm drainage facilities on North Second Avenue,
within the municipality, in conjunction with a joint project between the
City and the Florida State Road Department, as well as for all
attendant costs incurred by lhe City in connection with said project
and issuance of such revenue certificate or certificates, including
engineering, architectural, fiscal and legal expenses, and that said
revenue certificate or certificates, upon issuance, shall be sold at par
to the Firsl Bank of Boynton Beach, Florida, in accordance with their
existing commitment to purchase said certificatte or certificates; a
copy of said commitment is attached hereto marked Schedule A and
hereby made a part hereof.
(2) Thai such revenue certificate or certificates shall specifically
provide that same shall be payable solely from the income or revenue
derived from the existing municipal cigarette excise tax and that said
debt or debts shall not be or constitute general obligations of the City
of Boynton Beach and no ad valorem taxes shall ever be levied or
ATTEST:
utilized for the payment of the principal or of interest thereon nor
shall said debt ever constitute a lien or claim against any property
or asset of the City of Boynton Beach other than the revenue or
income from subject cigarette excise tax; that such certificate or
certificates shall further specifically provide for the right of the
City to prepay all or any part of the subject indebtedness at any time
prior to maturity without penalty.
(3) That upon issuance of subject revenue certificate or
certificates hereinabove described, the Mayor and City Clerk of the
City of Boynton Beach are hereby authorized to proceed with the
execution and sale of same, as provided for herein, and to further
proceed with the necessary steps to effectively implement the
accomplishment of this project, all subject to further authorization
and approval of the City Council.
(4) That the City of Boynton Beach hereby pledges to and for the
payment of the above obligation or obligations, upon issuance, annually
from the gross revenues derived from the above-described existing
cigarette excise tax, an amount sufficient to pay the annual obligations
set forth therein for principal and interest coming due thereunder, and
in addition, agrees that no obligations payable from said source will
hereafter be issued unless the lien of such future obligations against
subject cigarette excise tax shall be inferior, junior and subordinate
to the lien of the revenue certificates issued pursuant to this Resolution.
CITY OF BOYNTON BEACH~ FLORIDA
Mayor
City Clerk
(CORP. SEAL)
Councilm a~----
Councilman
FIRST BANK
OFF'ICE BOX ! BB
P,~NK
BOYNTON BEACH, FLORIDA 334.35
BOYNTON 732-9781
W. PALM BEACH
832-5601
G~'ORG£ I. WILD£
September Zg, 1966
Mr. F. T. Kain, City Manager
City of Boynton Beach
Boynton Beach, Florida
Dear Mr. Kain:
In reply to our recent conversation, I am pleased to advise that
our Bank has approved a loan to the City of Boymton Beach in
the amount of $160, 000, for a period of seven years, subject to
the following provisions, to wit:
1. A Promissory Note executed on behalf of the City
by authorized parties, in the amount of $160,000,
to mature seven years from date, providing for equal
annual principal payments, and including interest at
the rate of 4-3/4% per annum, payable annually.
2. In accordance with our previous conversation, the
Note evidencing this debt is to be validated through
Circuit Court of Palm Beach County, Florida.
3. A Pledge Agreement whereby all cigarette tax revenues
payable to the City of Boynton Beach by the State of
Florida are to be assigned to the Bank as principal
collateral for this loan.
An agreement whereby any future bonded indebtedness
of a general obligation nature sold by the City will
provide that the unpaid balance of this note at the time
of issuance, will be retired from the proceeds of said bond
issue.
5. It is agreed that this Bank will accept documentation
prepared by the City Attorney, and will be subject to the
approval of the Bank's Attorney, Mr. William A. Lord.
6. Ail expenses regarding the establishment of this loan,
relative to the preparation of legal documentation, are
to be borne by the City.
Mr. F. T. Kain, City !k4anager -2-
September 22, 1966
7. Presentation to the Bank of evidence that there are
no existing claims against the revenue tax pledged.
I trust that you find the foregoing to be satisfactory, and my associates
join me in thanking you for this opportunity to be of service to the City.
Yours very truly,
,uieol~ge I. Wl'fde
President
GIW/nd