64-MMRESOLUTION NO. 64-MM
WHEREAS, in connection with the recent refinancing and
refunding of the City's Water and Sewer revenue debt, the City agreed to
cooperate and assist with the preparation and issuance of an official state-
ment prepared by Bache & Company for the purpose of generating interest
in connection with the sale and purchase thereof by individual investors; and
WHEREAS, said Bache & Company has submitted a proposed
form of official statement to be utilized for the above purpose, an amended
copy of which is attached hereto and hereby made a part hereof; and
WHEREAS, the City Council of the CITY OF BOYNTON BEAC]
FLORIDA, has examined said amended statement and approved the contents
thereof,
NOW, THEREFORE, be it resolved by the City Council of
the CITY OF BOYNTON BEACH, FLORIDA, that the attached proposed
form of official statement, as amended, to be issued in connection with the
refunding and improvement revenue bond issue recently completed by the
CITY OF BOYNTON BEACH, FLORIDA, is hereby approved and J. ALLISON
BANKS, as Mayor of said City, or in his absence, JAMES J.~ MAHONEY, as
Vice Mayor, are hereby authorized to execute same on behalf of the CITY O1~
BOYNTON BEACH~ FLORIDA.
PASSED AND ADOPTED this ~t~day of September, A.'D.'
1964.
(Corporate seal)
City Clerk .;/ '
B~~z~~z------CITI~)F~BOYNTON BE~A CH, FLORIDA
~i~ Mayo~ /.
'ouncilman
NEW ISSUE
Interest Exempt from All Present Federal Income Taxes
$6,000,000
CITY OF BOYNTON BEACH
(PALM BEACH COUNTY, FLORIDA)
Refunding and Improvement Revenue Bonds
Dated: June 1, 1964
Due: June 1 in years shown below
Principal and semi-annual interest (June 1 and December 1) payable at The Chase Manhattan Bank, New York, New York, or
at The Atlantic National Bank of West Palm Beach, West Palm Beach, Florida, at the option of the Bondholder. Coupon
Bonds, registrable as to principal or as to both principal and interest, issued in denomination of $5,000 each.
SECURITY
The bonds are payable, as to principal and interest, solely from the net revenues derived from
operation of the combined Water and Sewer System of the City of Boynton in the manner
and to the extent provided in the Bond Resolution providing for the issuance of the Bonds.
AMOUNTS~ MATURITIES, COUPONS AND YIELDS
Amount Coupon Maturity Yield Amount Coupon Maturity Yield Amount Coupon Maturity
$ 65,000 4 % 1965 $105,000 3z~% 1978 $175,000 4 % 1991
70,000 4 1966 110,000 3a~ 1979 180,000 4 1992
70,000 4 1967 115,000 3a~ 1980 190,000 4 1993
75,000 4 1968 120,000 3a~ 1981 195,1)00 4 1994
75,000 4 1959 125,000 3,~ 1982 205,000 4 1995
80,000 4 1970 130,000 3~ 1983 210,000 4 1995
80,000 4 1971 135,000 3~ 1984 220,000 4 1997
85,000 4 1972 140,000 3~ 1985 225,000 4 1998
90,000 4 1973 145,000 3~ 1985 235,000 4 1999
90,000 4 1974 150,000 3~ 1987 245,000 4 2000
95,000 3~ 1975 155,000 3~ 1988 255,000 4 2001
100,000 3*x~ 1975 160,000 3~ 1989 255,000 4 2002
105,000 3t//z 1977 170,000 3~ 1990 275,000 4 2003
285,000 4 2OO4
(Accrued Interest to Be Added)
Yield
Prior Redemption: Bonds maturing in 1975 and thereafter shall be redeemable prior to their respective stated dates of maturity,
at the option of the City, in whole on any date on or after June 1, 1974 or in part, in inverse numerical order, on any interest
payment date on or after June 1, 1974, at the price of par and accrued interest to the date of redemption, plus the following
premiums, expressed in percentages of the par value thereof, if redeemed at the following times:
Year Premium Year Premium
1974 or 1975 ..................... 4% 1982 or 1983 ..................... 2%
1976 or 1977 ..................... 3~ 1984 or 1985 ..................... 1%
1978 or 1979 ..................... 3 1986 or 1987 ..................... 1
1980 or 1981 ..................... 2¼ 1988 or thereafter ................ %
These Bonds are offered when, as and i~ issued and received by us, subject to approval of legality
by Messrs. Freeman, Richardson & Watson, Jacksonville, Florida.
PROPOSED OFFICIAL STATEMENT
This Proposed Offlcial Statement of the City, prepared as of September 3, 1964, will be
executed as of the date of Bond delivery, in substantially the same form and substance but
subject to any changes herein made by the City prior to such execution. It is estimated that
the Bonds will be delivered on a day between September 21, 1964 and October 2, 1964.
STATEMENTS CONTAINED HEREIN, WHILE TAKEN FROM SOURCES CONSIDERED RELIABLE, ARE NOT GUARANTEED.
This Official Statement shall not be deemed to constitute an offer to sell Bonds in any state wherein it is unlawful to make such offer.
No dealer, salesman or other person has been authorized to give any information or to make any representation, other than those contained
herein, in connection with the offering of these Bonds, and if given or made, such other information or representation must not be relied upon.
September --, 1964
OFFICIAL STATEMENT
$6,000,000
City of Boynton Beach, Florida
Refunding and Improvement Revenue Bonds
BACHE & Co.
36 Wall Street
New York, New York 10005
Gentlemen:
The City of Boynton Beach, Florida (herein sometimes called the "City") proposes to issue
$6,000,000 principal amount of Refunding and Improvement Revenue Bonds (herein sometimes called
the "Bonds") dated June 1, 1964, 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 July 30, 1964 (herein sometimes called the "Bond Resolution"), and subject
to all terms and conditions of the Bond Resolution.
The City now owns, operates and maintains a municipal water system and a municipal sewer system
as a combined water and sewer system (as combined, herein sometimes called the "Water and Sewer
System") and derives revenues from rates, fees and other charges made for the services and facilities of
its Water and Sewer System.
PURPOSE OF ISSUE
The Bonds are being issued to finance the cost of refunding certain hereinafter identified revenue
obligations of the City and the cost of the construction and acquisition of additions, extensions and
improvements to be made to and for the sewer system of the Water and Sewer System. Said construction
and acquisition shall be effected in accordance with plans and specifications of Russell & Axon Consult-
ing Engineers, Inc., of Daytona Beach, Florida, currently employed by the Citer as the "Consulting
Engineers" defined in the Bond Resolution. In connection with the Water and Sewer System, includ-
ing particularly said construction and acquisition, Russell & Axon have prepared a summary report
dated August, 1964 (herein Sometimes called the "Engineering Report"). The refunding of said obliga-
tions will benefit the City in the saving of interest to be paid on the obligations.
THE REFUNDING
The Outstanding Obligations: The currently outstanding and unpaid revenue obligations of the City,
payable from pledges of revenues derived from the Water and Sewer System, consist of the following:
1. Water Revenue Bonds dated December 1, 1950 (herein called the "1950 Bonds"), originally issued
in the amount of $228,000 and outstanding on June 1, 1964 in the amount of $148,000, payable under
a first lien pledge of the Net Revenues derived from the water system part of the Water and Sewer
System but not callable prior to maturity.
2. Contractor Refunding Agreement Notes (herein called the "Contractor Notes") issued as non-
interest bearing obligations in various amounts at various times and outstanding on June 1, 1964
in the amount of $90,272.30, payable under a first lien pledge of certain Net Revenues, to the extent
derived from certain contractor-developed areas of the water system part of the Water and Sewer
System, and payable as a whole at any time.
3
3. Water Revenue Bonds, Series 1960 dated December 1, 1960 (herein called
originally issued in the amount of $1,370,000 and outstanding on June 1, 1964,:
$1,345,000, payable under a pledge of the Net Revenues of the Water and Sewe
to the prior liens of the 1950 Bonds and the Contractor Notes, and callable prio
June 1, 1971.
4. Water and Sewer Revenue Bonds, Issue of 1961, Series A (herein called the "S
dated December 1, 1961, originally issued in the amount of $1,750,000 and outsta
1964 in the amount of $1,745,000, payable under a pledge of the Net Revenues c
Sewer System, pari passu with the 1960 Bonds, subject to the prior liens of the 19
Contractor Notes, and callable prior to maturity on June 1, 1972.
5. Water and Sewer Revenue Bonds, Issue of 1961 Series B (herein called the "~
dated December 1, 1961, originally issued in the amount of $1,650,000 and outsta
1964 in the amount of $1,630,000, payable under a pledge of the Net Revenues c
Sewer System, subject to the prior liens of the 1950 Bonds, Contractor Notes,
Series A Bonds, additionally secured by a pledge of utilities services taxes colle
and the proceeds of certain special assessment payments collected by the City, an(
maturity on June 1, 1972.
As used herein, the term "Net Revenues" means the gross revenues derived by the
tion of its Water and Sewer System and remaining after deduction only of the costs of
expenses of operation, maintenance and repair of the Water and Sewer System, subjec
definition set forth in the Bond Resolution and, with relation to the presently outs
obligations identified above, to the definitions set forth in the respective instrume~
authorizing said outstanding revenue obligations.
Series A and B Advance Refunding: Upon sale of the Bonds, a part of the Bon,
amount sufficient to pay (i) the principal of, (ii) the redemption premium as of June
(iii) the interest accruing from Bond delivery to June 1, 1972 on all outstanding Ser/
Series B Bonds shall be transmitted to The Atlantic National Bank of West Palm B{
Beach, Florida (herein sometimes called the "Escrowee"), as Trustee and Escrowee und
to be made between said Bank and the City prior to or simultaneously with delivery of
sometimes called the "Escrow Deposit Agreement") and deposited into the "Outstand
Series B Bonds Retirement Fund" created and established by the Bond Resolution.
The Escrowee shall be irrevocably directed to call for redemption, on June 1, 197~
Series A Bonds and Series B Bonds. Upon the deposit with the Escrowee of sufficient ]
effect the complete retirement on June 1, 1972 of all outstanding Series A Bonds and S.
stated above, the pledge of and lien on the Net Revenues of the Water and Sewer Sy:
Series A Bonds and Series B Bonds and the pledge of and lien on the City's utilities
special assessment proceeds held by the Series B Bonds shall be discharged and rele
discharge and release, the utilities services taxes and special assessment proceeds shal
City and shall not be pledged for the payment of any of the Bonds.
Provision for 1960 Bonds: Upon sale of the Bonds, Bond proceeds in the amount of
transmitted to the Escrowee for deposit into the "Outstanding 1960 Bonds Retiremen
merly called under the instruments securing the presently outstanding revenue obligatio
"Reserve Account"). Said $400,000 and not less than $65,000 presently on deposit in
1960 Bonds Retirement Account, together with the net income or earnings which will be
investment and reinvestment of moneys in the Outstanding Series .4 and Series B Bonds
and in the Outstanding 1960 Bonds Rdtirement .4ccount, shall be sufficient to pay (i) the
the redemption premium as of June 1, 1971 for, and (iii) the interest accruing from
June 1, 1971 on all outstanding 1960 Bonds.
The Escrowee shall be irrevocably directed to call for redemption, on June 1, 1971
1960 Bonds. Upon the redemption of all outstanding 1960 Bonds, the pledge of and
Revenues of the Water and Sewer System held by the 1960 Bonds shall be discharge
1960 Bonds"),
Lhe amount of
ystem subject
o maturity on
es A Bonds")
lng on June 1,
he Water and
Bonds and the
es B Bonds")
'.ng on June 1,
he Water and
60 Bonds and
d by the City
[llable prior to
:y from opera-
rent operating
~ the complete
~ding revenue
securing and
,roceeds in an
1972 for, and
A Bonds and
h, West Palm
an Agreement
Bonds (herein
· Series A and
11 outstanding
id proceeds to
.~s B Bonds as
n held by the
ices taxes and
d. Upon such
e used by the
)0,000 shall be
tccount" (for-
>f the City, the
Outstanding
eived from the
'tirement Fund
ncipal of, (ii)
~d delivery to
II outstanding
n on the Net
md released.
4
Provision for 1950 Bonds: Upon sale of the Bonds, Bond proceeds in the amount of $148,000 shall
be transmitted to the trustee of the 1950 Bonds, for deposit into the Reserve Account created for the
1950 Bonds. Said $148,000 and moneys presently on deposit in said Reserve Account of the 1950 Bonds
shall be applied by the trustee of the 1950 Bonds for the payment, purchase or retirement of any or
all of such 1950 Bonds, including payment of interest thereon. As calculated under present investment
income estimates, the amount to be held in the Reserve Account of the 1950 Bonds after deposit of
said $148,000, together with the amount to be derived from investment and reinvestment of the moneys
held in said Reserve Account, shall be sufficient to completely retire the 1950 Bonds by the final
maturity of June 1, 1977, and pay all interest accrued thereto.
SECURITY O1~ 1964 BONDS
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
System; subject only to the lien thereon of the outstanding 1950 Bonds, the outstanding 1960 Bonds
and the outstanding Contractor Notes.
As presently calculated (based on investment of moneys in direct obligations of the United States,
Certificates of Deposit secured by direct obligations of the United States, or both), it is estimated
that moneys to be held in the outstanding 1960 Bonds Retirement Account, together with investment
income to be derived from investment of the Outstanding Series A and Series B Bonds Retirement
Fund, will be sufficient to retire all 1960 Bonds on June 1, 1971, and pay all interest on 1960 Bonds
to June 1, 1971, and, similarly, that moneys to be held in the Reserve Account of the 1950 Bonds,
together with investment income to be derived from investment of said Reserve Account will be
sufficient to retire all 1950 Bonds by final maturity in 1977 and to pay all interest on the 1950 Bonds
to such final maturity. Although adequate provision is made for retirement of the 1950 Bonds and
1960 Bonds from moneys other than the Net Revenues of the Water and Sewer System, the 1950
Bonds and the 1960 Bonds retain their lien on the Net Revenues of the Water and Sewer System
to the extent presently existing, until the complete payment and retirement of the 1960 Bonds and
1950 Bonds. Until payment thereof, the Contractor Notes retain their lien on the particular Net
Revenues of the water system part of the Water and Sewer System pledged thereto.
Validation: Prior to issuance thereof, the Bonds will be validated by decree of the Circuit Court
in and for Palm Beach County, Florida.
THE ESCROWEE AND TRUSTEE
The Atlantic National Bank of West Palm Beach, West Palm Beach, Florida, is trustee under
instruments relating to the security of the 1950 Bonds, 1960 Bonds, Series A Bonds and Series B Bonds.
Under the Bond Resolution, said Bank shall be the Trustee for the Sinking Fund and Construction Fund
held under the Bond Resolution and is herein sometimes called the "1964 Trustee" or the "Trustee."
DISPOSITION OF BOND PROCEEDS
Based on certain provisions relating to disposition of Bond proceeds, construction bids taken for
approximately one-fifth of estimated construction costs, remaining estimated construction costs and
related financing cost estimates, the estimated disposition of Bond proceeds under the Bond Resolution
is as follows:
Cash to deposit with trustee of 1950 Bonds ..................... $ 148,000
Cash to deposit with trustee of 1960 Bonds ....................... 400,000
Cash to deposit with trustee of Series A and B Bonds .............. 4,541,700
Construction costs of project .................................. 614,000'
Construction contingencies .................................... 56,300*
Engineering and inspection ................................... 50,000'
Fiscal agent fee and legal, printing, and financial costs ............. 90,000*
Interest reserved during construction ........................... 100,000'
Total .................................................. $6,000,000
* To be deposited in Construction Fund, as shall be provided in a resolution of the City providing
for disposition of moneys held in Construction Fund during Project construction.
ESTIMATED RETIREMENT OF OUTSTANDING BONDS
The retirement of the Series A Bonds, Series B Bonds, 1960 Bonds and 1950 Bo~
mentioned, is to be effected essentially in keeping with the following calculations based
date of October 1, 1964:
TABLE A: RETIREMENT m SERIES A & B BONDS
December 1, 1964 to June 1, 1972
Series A Bonds Series B Bonds
Total principal payments ............ $1,745,000 $1,630,000
Total interest payments to 6/1/72 ..... 525,800 501,400
Call premium 6/1/72 ................ 73,350 66,150
$2,344,156 $2,197,550
Cash needed for complete retirement, Series A and B Bonds ......... $4,54!
Investment of available $4,541,700 cash from 19'64 Bond Proceeds
Purchase: $3,352,000 principal amount U. S. Treasury 4's -- 2/1/72 ~ 99 $3,
Accrued interest from 8/1/64 to 10/1/64 .............................
Total Purchase Cost Treasurys ................................
4~ Time deposit (C.D.'s) maturing variously to 6/1/72 ................
, as heretofore
Bond delivery
Totl
$3,372 )0
1,02; )0
13! )0
$4,54: )0
Total Net Income on Invested Funds to 6/1/71, as per
Fiscal Agent's scheduled list of investment .......... $1,210,224
NOTE: zt#er the retirement of the 1960 Bonds on June 1, 1971, the invested income to 6 '2
will re~'ult in a ~rplus of $128,397.
TABLE B: RETIREMENTm1950 BONDS
December 1, 1964 to June 1, 1971
Total Total Total Require uts
Principal Interest to 5/1/71 Call Premium 6/1/71 for Complete Re ment
$1,345,000 $377,500 $56,475 $1,778,9
Available to Invest
Cash from bond proceeds 1964 Bonds ........................... $ 40( ,0
Cash on hand 1960 Bonds trustee ............................... 6~ 9
Cash in transfer from contingency fund of A & B Bond trustee ....... 2 0
Total cash to invest ....................................... $ 474 9
Purchase: $475,000 principal amount U. S. Treasury 4's
due 8/1/71@99 ........................................... $ 47C 0
Accrued interest from 8/1/64 to 10/1/64 ........................ 3 7
Total Purchase Cost Treasurys ........................... $ 473 7
Cash balance ................................................ $ 1 2
Total Income
Investment income $475,000 Treasuries for period held ............ $ 235 5
Investment income from Series A and B Bond Retirement Fund
(See Table A) ............................................. 1,210
Sale $475,000 Treasurys due 8/1/71 on 6/1/71 ~ par ............. 475
Total Proceeds ........................................... $1,920
Total Retirement Requirements ............................ 1,778 5
Surplus 6/1/71 .............................................. $ 141
TABLE C: RETIREMENT ~ 5% 1950 BONDS
(Non-Callable) Maturing 6/1/65-76
Cash on Hand Cash from 1964 Total Cash Total Requirer .ts
with 1950 Trustee Bonds Proceeds with Trustee for Complete Ret nent
$17,600 $148,000 $165,600 $199,350
Invest $165~000 in 4% time deposits (C.D.'s)
Net loss of income 4% C.D.'s versus 5% Bonds ................... $ 11 )
Principal Payments ............................................ 148: )
Total needed to retire 1950 Bonds ........................... $159, )
Total cash available to retire Bonds .......................... 165, )
Surplus ...................................................... $ 6,
NOTE: The above-identified investments, being subject to market conditions prevailing at ;
time of Bond delivery and availability of Bond proceeds, may be made in amounts
securOies other than shown above.
$3, ~ ,827
1, ,873
$4-;,700'
',,347
1,480
)0
Contractor Notes: As noted herein, the $90,272.30 Contractor Notes are non-interest bearing and
are payable at any time to the extent that revenues become available in the certain sections of the water
system financed under contractor agreements. No financial difficulty is foreseen in the retirement of
such amount of Contractor Notes.
THE PROJECT AND THE WATER AND SEWER SYSTEM
(A Summary of Certain Parts of the Engineering Report)
Location of City: The City is located in Palm Beach County about 12 miles south of West Palm
Beach, the County Seat. The City has an area of approximately 14 square miles and the 1960 U. S. Census
reports a population of 10,145. The population as of August 1, 1964 is estimated as 13,155. The City is
bounded on the east by the Intracoastal Waterway and Lake Worth and on the south by the City of
Delray Beach. The areas to the immediate north and west are unincorporated. The City owns a public
beach on the Atlantic Ocean, one-half mile east of the center of the City.
General Characteristics: The general terrain of the City is somewhat higher than that of other areas
of the lower Florida East Coast. Rolling hills and Lake Worth and Intracoastal Waterway sites have
added to the desirability of home sites throughout the City. The City is essentially residential; however,
there are many small commercial and business concerns within the City, as evidenced by the fact that
234 such enterprises are included as water customers of the City at present.
Palm Beach County is the leading agricultural county in Florida. In addition to this source of
economic income, the County is becoming more industrialized with the inclusion of such nationally-
known firms as Pratt & Whitney, manufacturer of airplane engines and component parts; Minneapolis-
Honeywell Co., manufacturing electronic components in the County; and, RCA, manufacturing the
301 computer and other products in the County. All of this new industry is within easy commuting
distance of Boynton Beach, and is a substantial contribution to the economy of the area.
Municipal and Utility Services: The City operates under a council-city manager form of govern-
ment. Five Councilmen are elected for staggered terms of the Council. A Mayor and Vice-Mayor are
~ within the Council. A city manager, selected by the City Council, administers the affairs of
the City.
The City operates it own Water and Sewer System. Electric service is provided by the Florida
Power & Light Company and natural gas is available through the Florida Public Utility Company. Trans-
portation facilities are excellent. U.S. #1 passes through the City and the Sunshine State Parkway lies
just west of the City. Railroad service is provided by the Seaboard Air Line and Florida East Coast
railroads. Air transportation to all points of the world is provided at the Palm Beach Airport which is
located just ten miles north of the City.
Existing Water System: Significant development of the City's municipal water system began in the
Post WWII era. An extensive water works improvements program was completed in March 1962, includ-
ing development of a new well field which can support additional wells of sufficient capacity to meet the
water supply needs of the City for many years in the future. A new water treatment plant was constructed
with an average capacity of 3.0 mgd. and a peak capacity of 8.0 mgd. The plant is designed to provide
complete treatment facilities.
The water system now has a total storage capacity of 2,600,000 gallons, which is 50% in excess of the
present daily average water demand. The distribution system was strengthened by the addition of a
number of trunk lines and feeder mains. Only minor additions will be required over the next ten years.
All new lines were constructed of cast iron and have a'service llfe in excess of 100 years.
The City water system also provides service to the Town of Ocean Ridge. A new supply main has
been recently constructed to improve service to Ocean Ridge. Charges for water service to Ocean
Ridge are billed on the basis of individual users.
As of June 1, 1964, the water system had approximately 4,350 customers.
(Note: The following relerence to the Town of Ocean Ridge water system is not a part ~
Report).
The Town of Ocean Ridge (located near the City) has granted to the City a
construction of certain water mains, fire hydrants and distribution facilities in said ~.
supply of water to the inhabitants of said Town for a period of thirty years from [
Under the terms of said franchise, said water mains, fire hydrants and distributi
structed by the City in the Town of Ocean Ridge are owned by and are the property
part of its Water System; the water mains and distribution facilities existing in th
Ridge which were then served by the Water System of the City, pursuant to Chapt
Florida, Acts of 1931, continue to remain the property of said Town, but continue ~
supplied with water by the Water System of the City under the conditions provi&
and said franchise. At the expiration of the franchise the Town has the option o:
part of the City-owned Water System which is located in the Town. In the altern
tion, the City may negotiate for a franchise extension.
Revenue Experience: Water revenues are derived on the basis of th
Water
structure:
he Engineering
,nchise for the
vn, and for the
ruary 23, 1951.
facilities con-
the City, and a
'own of Ocean
15088, Laws of
,e and are now
)y said statute
archasing that
'., upon expira-
[ollowing rate
Minimum 3,000 gallons @ $1.50 per thousand
Next 2,000 gallons @ 0.40 per thousand
Next 20,000 gallons ~ 0.30 per thousand
Next 10,000 gallons @ 0.25 per thousand
Next 50,000 gallons ~ 0.20 per thousand
All over 85,000 gallons by special agreement
Fire hydrant rental -- $75.00 per each year
Historical water revenues and expenses for the past eight years are as follows:
Year through Operation and
October31 Gross Revenues M~ntenance Net Revenues
1963 ............ $282,548.44 $153,120.82 $129,427.62
1962 ............ 271,066.78 131,791.18 139,275.60
1961 ............ 266,008.86 94,326.19 171,683.00
1960 ............ 225,411.09 78,503.96 146,907.13
1959 ............ 200,930.55 71,106.89 129,823.66
1958 ............ 176,586.31 56,864.85 119,721.46
1957 ............ 143,664.14 50,245.21 93,418.93
1956 ............ 121,621.62 37,482.56 84,139.06
Both gross revenues and net revenues show a steady increase through the year 196
have continued to increase through 1963 and 1964. On the other hand, net revenues .
and further decreased in 1963. Russell & Axon have carefully examined this historical
determine the reasons for the apparent large increase in operation and maintenance cc
quent reduction in net revenues. Prior to 1962 general administrative costs were not sp,
budgets as operating costs. The City water department did contribute to general adrr
City through surplus water revenues available after direct costs and debt service had t
the City allocated to the water department a number of pro-rated general administral
classified them as direct operating costs. Russell & Axon have discussed this matt
officials, and it is generally agreed that the Bond Resolution will provide that on
revenues can be used for any lawful City purpose which will include general administ
is done, net revenues available for debt service from the water system will reflect the ~
after direct operation costs only have been deducted from the gross income of the wat~
& Axon have carefully examined the historical record and have adjusted the years
reflect net revenues based on direct operation costs only. For the years 1962 and 15
as follows:
1962--Gross Revenues ....................................... $271,01
Operation and Maintenance ............................ 116,01
Net Revenues available for bond debt service and reserves ......... $155,0~
1963--Gross Revenues ....................................... $282,5,
Operation and Maintenance ............................. 126,0t
Net Revenues available for bond debt service and reserves ........ $156,5,
_~ross revenues
reased in 1962
ord in order to
~ with a subse-
]ed in the City
stration of the
n paid. In 1962
; expenses and
with the City
surplus water
ion. When this
rant remaining
ystem. Russell
i2 and 1963 to
this would be
78
)0
)0
)0
)0
The direct operation and maintenance costs did increase considerably in 1962. This is due to the fact that
prior to 1962 Boynton Beach did not have a complete water treatment plant. The addition of complete
water treatment facilities has therefore increased the cost of operation.
No adjustment has been made in water rates since the addition of the extensive improvements
including water treatment. Russell & Axon are recommending to the City that water rates be adjusted
upward to reflect the increased cost of operation due to the additional improvements. It is anticipated
that these recommendations will be given consideration by the City officials and action taken at an
early date.
A forecast of water revenues made herein is given in conjunction with consideration of the sewage
works, since the System will be operated as a combined system. In the forecast, the prexent water ratex
and experience have been used. Said present rates produce an average return of $68 per customer per
annum. Any increase in water rates by action of the City will reflect a corresponding increase in net
revenues. (The water revenue and system operating expense estimates are shown in Plate I on Page 18
of the Official Statement.)
Existing Sewer System: The municipal sewer system of the City became a significant factor in
the future development of the City when, in 1957, the City cooperated with a developer in initiating
construction of sewage works to provide collection and treatment facilities to homes being built by the
developer in the northwest portion of the City. Approximately one-third of the cost, or $200,000 was
borne by the developer, and the remainder, $400,000, was financed by the sale of sewer revenue bonds.
In 1961 a program was selected to include expansion of the existing sewage treatment plant, connec-
tion of the old sewered section to the plant and the construction of additional collection system facilities to
serve approximately 70% of the population. The programmed sewage works project was financed by the
issuance of water and sewer revenue bonds in the amount of $3,400,000, divided into Series A, $1,750,000
and Series B, $1,650,000. In addition, the City received a U. S. Public Health Service grant of $250,000.
Construction work is virtually completed on this project, and it is anticipated that all elements of the system
will be in operation by September 1, 1964.
A recent house count shows that potential existing connections within the sewered area are 3,211
private dwellings, 234 commercial establishments, 193 apartment units, 18 motel units, 50 trailer units,
seven schools, one 250-bed hospital and one nursing home. These connections total 4,054 in terms of
equivalent residential units each producing $45.00 per year at present sewer service rates. (Russell &
Axon report that sewer connections are being made during the month of September, 1964, and that
by October 1, 1964 approximately 4,100 unit equivalents will be connected.)
Experience: Monthly rates have been established for sewer service as follows:
Sewer l~evenue
Residential: 5 fixtures or less $3.25
Next 7 fixtures $0.35 each
All over 12 fixtures $0.20 each
Commercial: 2 fixtures or less $3.25
Next 8 fixtures $0.50 each
All over 10 fixtures $0.25 each
Industrial:
0 3,000 gallons $5.00
Next 2,000 gallons $0.40 per thousand
Next 20,000 gallons $0.30 per thousand
Next 10,000 gallons $0.25 per thousand
All over 35,000 gallons $0.20 per thousand
As construction of the sewer system progresses, connections have been made and charges for sewer
service implemented. Gross revenues derived for fiscal year 1964 for the first five months are as follows:
Number
Month Connections
November ......................... 1,044
December ......................... 1,057
January ........................... 1,064
February .......................... 1,049
March ............................ 1,059
Sewer
Service Charge
$3,747.20
3,837.70
3,770.85
3,825.05
3,889.65
9
According to the above tabulations, the average revenue per connection per month !
ins this for one year indicates an average yearly return per connection of $43.40. Russe
nally projected their revenue forecast on the basis of equivalent residential units prod
annum per unit. The area in service to date is primarily one bathroom, single family ~
quently, the average return for this area can be expected to be less than the over-all
City. Therefore, revenue estimates are in relatively close agreement with the original p:
Prior to construction of the 1961 financed project, the sewer system had about
said small number of users were serviced at rates less than those mentioned abow
earnings is insignificant in relation to the present revenue potential.
Sewer RevenUe Projections: Since the existing sewer service rates are based on adz
from sewer assessments, a source which is not used to finance the present Project, tl~
will have to be changed for residential and commercial use to:
Residential: 5 fixtures or less $4.00 Commercial: 2 fixtures or les~'
Next 7 fixtures $0.35 each Next 8 fixtures
All over 12 fixtures $0.20 each All over 10 fixtures
It is forecast that the increased rates will result in increasing the yearly per custom~
from I~45.00 to $53.00. The sewer system revenue projections are shown in Plate I hereof.
The Project: Essentially, the Proiect to be financed from Bond proceeds consi
sewers for Systems IA, 2B, 5, SA, 5B, 10 and 10A illustrated in Sheets 1 to 4, inclusive, c
Project maps issued concurrently with the Engineering Report. (The estimated conm
the sewer system and its revenues is reflected in Plate I on page 18 of this Official S
Water system extensions required in the next few years will be relatively minor an
on a year to year basis from surplus water and sewer revenues remaining after Bond
reserve requirements. It is anticipated that requirements wilt average less than $25,000 ~
cases this will be offset in new subdivisions where land owners may be required to p
installation.
Engineers Operating Estimates: Russell & Axon state that the Water and i
net revenues derived from operating revenue and expenses projections made in the En
(which projections are reproduced as part of Plate I hereof) may be realized, as proj~
2004, from operation of the presently existing Water and Sewer System, the present ~
improvements paid from surplus System revenues in the Renewal and Replacement
hereinafter.
CITY ADMINISTRATION
;3.62. Project-
k Axon origi-
ns $45.00 per
dents. Conse-
erase for the
:ction.
' users. Since
:he record of
onal revenues
nonthly rates
..00
.50 each
,.25 each
'ross revenues
of providing
ewage Works
on growth in
sment.)
an be handled
)t service and
year. In many
for their own
ver estimated
eering Report
:d to the year
iect and small
nd mentioned
The elected and appointed City executives are:
J. ALLISON BANKS, Mayor JAMES J. ~V~AHONEY, Vice
JO~N L. ARCHIE, Councilman WALTEa A. Mm)SEN, Councilman T~o~as A. Su~M
F. T. I~IN, City Manager GENE MoosE, City Atto
TEm*.SA PADGETT, City Clerk
~yor
;, Councilman
.y
Outstanding Bonded Debt: Assuming that the debt service of the $4,958,272 tot
1950 Bonds, Contractor Notes, 1960 Bonds, Series A Bonds and Series B Bonds is scl
bonded debt of the City and related aspects prior to issuance of the 1964 Bonds may be
Taxable (Non-Exempt) Assessed Property Valuation (100% of Full)
outstanding
upporting, the
~n as follows:
1961 -- $52,304,320 1962 -- $55,113,690 1963 -- $58,180,209 1964 ~ $~ 12,644
Direct Net Debt (excluding above-mentioned obligations) .......... $1,59£ 8
Overlapping Debt (Est.) ............. .............. ........... 1,25( 0
Overall Net Debt ....................................... ' ..... $2,84( ~
Overall Net Debt Per Capita, 1960 (Pop. 10,145) = $280
Overall Net Debt Per Capita, 1964 (Pop. 13,300) -- $214
Overall Net Debt to Assessed and Full Value . ~- 4.7%
10
Summary of Certain Provisions of the Bond Resolution
DISPOSITION O1~ BOND PROCI~I~DS
The Bond proceeds shall, when received by the City, be forthwith applied as follows:
(1) Transmit to the 1964 Trustee all accrued interest paid upon delivery of the Bonds for
deposit into the Principal and Interest Account of the Sinking Fund held under the Bond Resolu-
tion, and such money shall be applied to the payment of interest on the Bonds.
(2) Transmit a portion of the Bond proceeds to the Escrowee, under the Escrow Deposit
Agreement as hereinbelow mentioned, for deposit into a trust fund held under the Bond Resolution
and known as the "Outstanding Series A and Series B Bonds Retirement Fund" and the amount of
the Bond proceeds so deposited with the Escrowee shall equal in the aggregate (i) the principal
amount of the outstanding Series A Bonds and Series B Bonds; (ii) the amount of the redemption
premium applicable to the outstanding Series A Bonds and Series B Bonds to be redeemed on June 1,
1972; and (iii) the amount of interest payable on the outstanding Series A Bonds and Series B
Bonds to June 1, 1972. Such moneys on deposit in the Outstanding Series A and Series B Bonds
Retirement Fund shall be irrevocably held in trust by the Escrowee for the purpose of providing
for the retirement of the outstanding Series A Bonds and Series B Bonds, pursuant to the Escrow
Deposit Agreement to be entered into between the City and the Escrowee.
(3) Transmit to the 1960 trustee for deposit into the Reserve Account created for the benefit
of the outstanding 1960 Bonds, the sum of ~00,000. Such Reserve Account shall be maintained with
the 1960 trustee until the retirement of the outstanding 1960 Bonds and such Reserve Account shall
be designated "Outstanding 1960 Bonds Retirement Account" and such sum of I~X),000 and the sum
of not less than 1~55,000 presently on deposit therein shall, together with the net income or earnings
which will be received from the investment and reinvestment of the moneys in the outstanding
Series A and Series B Bonds Retirement Fund and the Outstanding 1960 Bonds Retirement
Account, at least equal in the aggregate (i) the principal amount of the outstanding 1960 Bonds;
(ii) the amount of the redemption premium applicable to the outstanding 1960 Bonds to be redeemed
on June 1, 1971; and (iii) the amount of interest payable on the outstanding 1960 Bonds to June 1,
1971. The moneys or market value of the securities on deposit in the outstanding 1960 Bonds Retire-
ment Account shall always be at least equal to the maximum amount required to be then on
deposit in such outstanding 1960 Bonds Retirement Account pursuant to the provisions of the
resolution authorizing the issuance of the outstanding 1960 Bonds. Such moneys on deposit in the
Outstanding 1960 Bonds Retirement Account shall be irrevocably held in trust by the 1960 trustee
for the purpose of providing for the retirement of the outstanding 1960 Bonds, pursuant to the
Escrow Deposit Agreement.
(4) Transmit to the 1950 trustee for deposit into the Reserve Account created for the out-
standing 1950 Bonds, the sum of $148,000 to be applied by such 1950 trustee for the payment, pur-
chase or retirement of any or all of such outstanding 1950 Bonds.
(5) The remaining balance of Bond proceeds shall be deposited in the Construction Fund held
under the Bond Resolution.
The Escrowee shall withdraw at such times from the Outstanding Series A and Series B Bonds
Retirement Fund and transmit to the paying agents of the outstanding Series A Bonds and Series B
Bonds the amounts necessary to provide for the retirement of such outstanding Series A Bonds and
11
Series B Bonds on or prior to June 1, 1972. Such moneys on deposit in the Series A and
Retirement Fund shall be invested and reinvested by the Escrowee in direct obligation
States of America or in time deposits evidenced by certificates of deposits, at the direct
All moneys on deposit in the Outstanding Series A and Series B Bonds Retirement Fund
deposits, shall be continuously and fully secured with direct obligations of the United St:
having a market value (excluding accrued interest) of not less than the amount of su
time deposits. All net income or earnings on such investments shall, when received on (
1, 1971, be forthwith transmitted by the Escrowee to the 1960 trustee to be deposited into t
1960 Bonds Retirement Account. Thereafter such net income or earnings shall be
deposit to the credit of the Reserve Account in the Sinking Fund maintained for the Bo
The 1960 trustee shall withdraw at such times from the outstanding 1960 Bonds Retil
and transmit to the paying agents of the outstanding 1960 Bonds the amounts necessar,
the retirement of such outstanding 1960 Bonds on or prior to June 1, 1971. Such mone3
the Outstanding 1960 Bonds Retirement Account shall be invested and reinvested by t
in direct obligations of' the United States of America, at the direction of the City. All
earnings received on such investments shall be retained by the 1960 trustee in the O~
Bonds Retirement Account.
Prior to the delivery of the Bonds, the City shall transmit to the 1960 trustee and
certified copy of a resolution of the City Council, providing for the redemption on Jun
outstanding 1960 Bonds maturing subsequent to such date from moneys held in the o~
Bonds Retirement Account and for the redemption on June 1, 1972 of the outstanding
and Series B Bonds maturing subsequent to such date from moneys held in the Outstandi
Series B Bonds Retirement Fund, and irrevocably instructing the Escrowee and the
call for redemption the respective subject outstanding bonds entrusted to them.
Transfers of Other Available Moneys: Upon delivery of the Bonds, the trustee appc
resolutions authorizing the outstanding Series A Bonds and Series B Bonds shall with
in the Reserve Accounts for the Series A Bonds and Series B Bonds, respectively, and tr~
for deposit in the Construction Fund and the 1960 trustee shall withdraw any funds in th~
tion Account created and established under the resolution authorizing the issuance of
1960 Bonds and shall deposit such moneys in the Renewal and Replacement Fund.
After providing for the retirement of the respective subject outstanding bonds, t
and the Escrowee shall withdraw from such respective Retirement Funds any excess m(
therein and transmit the same for deposit to the credit of the Reserve Account in th,
held under the Bond Resolution, if necessary, otherwise to the Principal and Interest .
Sinking Fund.
The City shall pay to the 1960 trustee, the paying agents, and the Escrowee, from fl
available for such purpose, the agreed amount of fees and expenses incurred or to be
1960 trustee, the paying agents and the Escrowee in connection with the retirement
outstanding bonds.
CONSTRUCTION FUND
Moneys held in the Construction Fund shall be applied to the construction ant
additions, extensions and improvements to the Sewer System of the City's combined V~
System, consisting of, but not limited to, the construction and installation of lateral sc
mains, together with other facilities, extensions, improvements and additions, neces
or appurtenant thereto, including the acquisition of lands and interest therein necessar
therefor, and all substantially in accordance with the plans and specifications there:
to be prepared by Russell & Axon, Consulting Engineers, of Daytona Beach, Florid~
or to be approved by the City Council, at an estimated cost of not exceeding $1,100,0(~
times called the "Project"), Moneys held in the Construction Fund shall also be appl
dental costs related to Bond issuance, including but not limited to fiscal and legal fee'.
during construction and for six months thereafter, and closing costs.
les B Bonds
[ the United
of the City.
cluding time
~ of America
moneys and
~rior to June
Outstanding
~smitted for
ent Account
~ provide for
~n deposit in
1960 trustee
· .t income or
anding 1960
Escrowee a
, 1971 of the
:anding 1960
ies A Bonds
Series A and
i0 trustee to
ed under the
w any funds
mit the same
)nd Redemp-
outstanding
1960 trustee
is remaining
inking Fund
:ount of said
s of the City
urred by the
!the subject
cquisition of
:,.r and Sewer
rs and small
y, incidental
,r convenient
prepared or
nd approved
iherein some-
to pay inci-
Iond interest
12
WATER AND SEWER SYSTEM RATE COVENANT
The City will fix, maintain and collect rates, fees, rentals or other charges for the services and
facilities of the Water and Sewer System, as will always provide funds in each year sufficient to pay
all costs of operation and maintenance of said Water and Sewer System, plus 125% of the maximum
annual debt service requirement in any succeeding year for the Bonds, the outstanding 1950 Bonds
and the outstanding Contractor Notes.
WATER AND SEWER SYSTEM REVENUE FUND
Gross Revenue Deposits: The entire Gross Revenues derived from the operation of the Water
and Sewer System shall be deposited in the "Water and Sewer System Revenue Fund", heretofore
created and established pursuant to the resolution authorizing the issuance of the outstanding 1960
Bonds (herein sometimes call the "Revenue Fund"). Said Fund, held by the City, shall constitute a
trust fund for the purposes provided in the Bond Resolution, and shall be used only for the purposes
and in the manner provided for in the Bond Resolution; provided, however, that the City shall comply
fully with all the Covenants, agreements and provisions of the resolution which authorized the issu-
ance of the outstanding 1950 Bonds, and with the provisions of the outstanding Contractors Notes
as long as any of the said outstanding obligations are outstanding and unpaid or until adequate pro-
vision is irrevocably made for the payment thereof.
After the final payment, or the making of irrevocable provision for payment, of all said outstand-
ing 1950 Bonds and said outstanding Contractor Notes then all revenues derived from the Water
and Sewer System shall be deposited in the Revenue Fund and applied and distributed in the manner
provided in the Bond Resolution.
Flow of Funds: All revenues at any time remaining on deposit in the Water and Sewer System
Revenue Fund shall be disposed of on or before the fifteenth day of each month only in the following
manner and in the following order:
(1) The revenues shall first be used for the payment of all current monthly Operating
Expenses of the Water and Sewer System.
(2) The revenues shall next be used to make the payments to the sinking fund, including
the reserve account therein, if any, required by the resolution which authorized the issuance of
the outstanding 1950 Bonds, and to make the principal payments required to be made on account
of the outstanding Contractor Notes, if any.
(3) Thereafter, all revenues remaining on deposit in the Revenue Fund shall be deposited
in the "Refunding and Improvement Revenue Bond Sinking Fund", a trust fund created by the
Bond Resolution (herein sometimes called the "Sinking Fund"). The Sinking Fund shall be
continued and maintained with a Trustee to be designated by Resolution of the City Council, as
Trustee or 1964 Trustee, as long as any of the Bonds or interest thereon are outstanding and unpaid.
(4) The Sinking Fund, and the Principal and Interest Account, and the Reserve Account,
hereinbelow mentioned, shall be maintained under the Trustee as long as any of the Bonds, or
interest thereon, are outstanding and unpaid. On the fifteenth day of each month the Trustee
shall deposit into an account in the Sinking Fund, to be known as the Principal and Interest Account,
from the moneys in said Sinking 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 the fifteenth
day of the month immediately following the delivery of the Bonds, one-twelfth of all principal
maturing on the Bonds on the next principal maturity date; provided, however, that such monthly
payments required for the interest becoming due on December 1, 1964, and for principal becoming
due on June 1, 1965, shall be increased proportionately to the extent required to pay such Decem-
ber 1, 1964 interest and such June 1, 1965 principal.
The Trustee, from moneys on deposit in the Sinking Fund, shall next deposit into an account
13
in the Sinking Fund, to be known as the Reserve Account, on the fifteenth day c
beginning with the fifteenth day of the first full calendar month following the date c
of all or any of the Bonds, a sum equal to one-twelfth (1/12) of the annual sum of 8)29,97'
vided, however, that no further deposits shall be required to be made by the Trustee~
Reserve Account when there shall have been deposited therein, and as long as there shi
on deposit therein the sum of :$299,380.00. Any withdrawals from the Reserve Accoun~
subsequently restored from the first revenues of the Water and Sewer System availabli
required current payments for the Principal and Interest Account and Reserve Account, i
any deficiencies for prior payments, have been made in full. Moneys in the Reserve
suant to the Bond Resolution shall be used only for the purpose of the payment of matui
cipal of or interest on the Bonds.
Upon the issuance by the City of any additional parity bonds under the terms, limit;
conditions provided in the Bond Resolution, the payments into the various accounts in
lng Fund shall be increased in such amounts in direct ratio as are necessary to make the
mentioned above for principal of and interest on, and reserves for such a ' ' '
dd~tmnal panty
(5) The Renewal and Replacement Fund, created and established pursuant to the r
authorizing the issuance of the Outstanding 1960 Bonds shall be maintained and held by'
as long as any of the Bonds or interest thereon, are outstanding and unpaid, and the Trus
continue to pay to the City for deposit into such fund from the Sinking Fund, on the fifte
of each month in each year, an amount equal to one-twelfth of $10,000 until there sha
deposit in such Renewal and Replacement Fund and as long as there shall remain on
therein the sum of $100,000; provided, however, that as long as the outstanding 1950 B
ach month,
he delivery
DO; pro-
~to said
remain
shall be
~fter all
Lcluding
tnt pur-
~g prin-
~ns and
e Sink-
.yments
onds.
;olution
he City
.~e shall
~th day
be on
deposit
Ids are
outstanding and unpaid, or until adequate provision is irrevocably made for the paymentl :hereof,
any amounts deposited in the Renewal and Replacement Fund under the proceedings whicli ~uthor-
ized the issuance of said outstanding 1950 Bonds may be deducted from the amounts rec~~ ired to
be deposited in such Renewal and Replacement Fund. The Funds on deposit in such i enewal
and Replacement Fund shall be used only for the purpose of paying the cost of extensi~ as, im-
provements or additions to, or the replacement of capital assets of the Water and Sewerl ~ystem
or any part thereof; provided, however, that upon the certification of the City Council th~: funds
in said Renewal and Replacement Fund are not needed for such purposes, such excess funI s shall
be deposited by the City in the Outstanding 1960 Bonds Retirement Account and used and. tpplied
in the same manner as other moneys on deposit therein; provided, further, however, tht t if at
any time moneys in the Sinking Fund are insufficient to make the deposits provided to 1~ made
into the various accounts in the Sinking Fund, moneys on deposit in th~ ~> ..... ~ --~ .... ~ ·
., r ~ ~-~,,~wa~ anu x~epl~ :ement
Fund shall be withdrawn therefrom and deposited by the City in the various accountsl in the
Sinking Fund, in the order of priority set forth in the Bond Resolution to the extent of ai y defi-
ciencies in said various accounts.
(6) If on any monthly payment date, the revenues are insufficient to place the required ~ mount
in any of the accounts or funds above mentioned, the deficiency shall be made up on the sub~ equent
payment dates in addition to the payments which would otherwise be required to be ma![e into
such accounts or funds on the subsequent payment dates.
(7) Thereafter, any moneys remaining on deposit in the Sinking Fund on the twentiethi (20th)
day of June and December in each year, after all required payments in the funds mentioned, above
have been made in full on the preceding fifteenth (15th) day of such months shall be deemed ~ urplus
funds. On the twentieth (20th) day of each June and December in which there is a surpl0 ~, said
surplus shall be returned by the Trustee to the City to be used for any lawful municipal ~ ~rpose
or upon direction by the City shall be retained by the Trustee to be used for the purci~ ~se or
redemption of Bonds.
(8) All such special funds hereinabove mentioned shall constitute trust funds for the p~ :poses
provided in the Bond Resolution for such funds. All of such funds shall be continuously anl [ fully
secured by direct obligations of the United States of America.
14
ADDITIONAL BONDS
The City will not issue any other obligations, except upon the conditions and in the manner pro-
vided in the Bond Resolution, payable from the revenues derived from the operation of the Water
and Sewer System, nor voluntarily create or cause to be created any debt, lien, pledge, assignment,
encumbrance or any other charge having priority to or being on a parity with the lien of the Bonds
and the interest thereon upon any of the income and revenues of said Water and Sewer System.
The City may issue additional bonds, payable from and secured by a pledge of the Net Revenues
of the Water and Sewer System on a parity with the Bonds and issued to finance the construction
and acquisition of additions, extensions and improvements to the Water and Sewer System, essentially
subject to the following:
The filing with the City Clerk of a certificate of an independent certified public accountant,
stating that the records relating to the collection of such Net Revenues have been audited by him
and stating that, as regards the Net Revenues received by the City immediately preceding issu-
ance of such additional parity bonds, the average annual Net Revenues during the immediately
preceding 24 complete calendar months, or the Net Revenues during the immediately preceding
12 complete calendar months, whichever is the lesser, equal not less than 140% of the largest
amount of principal and interest which will become due in each year thereafter on (i) all Bonds
and all additional parity bonds, if any, then outstanding, and (ii) on the additional parity bonds
with respect to which certificate is made.
In determining the amount of Net Revenues for the purposes of additional parity bond issuance
mentioned above, the Consulting Engineers may adjust Net Revenues by adding thereto the following:
(1) The Net Revenues (computed for such facility on the 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 additional parity bonds or which
the City shall be acquiring from proceeds of such additional parity bonds, and which, in the case
of the acquisition 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 additional parity bonds for a part of the
same base period or periods and such change has resulted in an increase in Net Revenues, 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 col-
lected from users of such sewer utility when service is rendered, 75% of the Net Revenues esti-
mated 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 additional parity bonds, together with other funds on hand or lawfully obtained for such pur-
pose and deposited in a Construction Trust Fund to be established for such purpose, who are then
actual customers of the Water System of the City's combined Water and Sewer System.
All Bonds and additional parity bonds issued under the Bond Resolution may be refunded as a whole.
Bonds and additional parity bonds issued under the Bond Resolution may be refunded in part (and
lien of the refunded obligations on the Net Revenues fully preserved for the refunding obligations)
the
if:
(a) The refunding bonds bear the same or a lower rate of net interest cost and the final
maturity date of the refunding bonds is not later than the final maturity date of the obligations
refunded; and
(b) The aggregate amount of principal and interest maturing in each year thereafter on the
refunding bonds and on the part of the Bonds and of any additional parity bonds, then outstand-
15
lng, which are not refunded is not greater than the aggregate amount of principal and interest
which would have matured in each year thereafter on such Bonds and additional parity bonds,
then outstanding, if none of such obligations were refunded.
BOND RESOLUTION TO CONSTITUTE CONTRACT
The Bond Resolution sets forth that, in consideration of the acceptance of the Bonds by those that
shall hold the same from time to time, the Bond Resolution shall be deemed to be and shall constitute a
contract between the City and holders of Bonds.
Modification or Amendment of Bond Resolution: No material modification or amendment of the
Bond Resolution or of any resolution amendatory hereof 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
unconditional promise of the City to fix and collect rates, fees, rentals and other charges for the Water
and Sewer System, or to pay the principal of and interest on the Bonds as the same shall become due
from such revenues of the Water and Sewer System, or reduce such percentage of holders of such
Bonds, noted above, for such modifications or amendments, without the consent of the holders of all
of such Bonds.
CERTAIN COVENANTS OF THE CITY
The Bond Resolution contains covenants of the City made for the holders of Bonds, including
but not limited to the following:
Requiring Connections to Sewer System: The City will, 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 sewer system portion of the Water and Sewer System to connect with and use such sewer system,
and to cease all other collection, purification, treatment and disposal of sewage and waste matter.
Enforcement of Collections: The City will cause to be enforced and collected all charges for the
services and facilities of the Water and Sewer System and will take all steps for the enforcement and
collection of such charges which shall become delinquent, to the full extent permitted by law. Charges
for the use of the sewer system shall be made and rendered on the same bills, insofar as practicable,
as the charges for the use of the water system.
The City, to the extent permitted by law, will cause the discontinuance of both water services
and sewer services to all delinquent users of said Water and Sewer System until all delinquent charges,
together with reasonable interest and other penalties, have been fully paid and discharged.
No Competing Systems: 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 party whatsoever, for the fur-
nishing of water or sewer services to or within the City.
No Free Services: The City will not render or cause to be rendered any free services of its Water
and Sewer System, nor will any preferential rates be established for users of the same class, regardless
whether such users are governmental, private or other.
Insurance: The City will carry such insurance as is ordinarily carried by private corporations
owning and operating similar utilities as the Water and Sewer System.
Books, Records and Reports: The City will keep books and records of the Water and Sewer
System, which shall be separate and apart from all other books, records and accounts of the City.
The City shall, at least once a year, (i) cause the books, records and accounts of the Water and Sewer
System to be properly audited by a competent auditor or accountant of recognized standing; (ii) cause
said Water and Sewer System to be inspected by the Consulting Engineers, who shall make a written
16
report of their inspection; and (iii) cause the 1964 Trustee to issue a written report which shall con-
tain a record of all moneys received and disbursed by said Trustee, any Bonds and coupons paid during
the preceding twelve months, the status of any investments made by said Trustee from the Funds
maintained by it, and the balance remaining in each such Fund.
.,~ copy of each such audit report, engineer's report, or Trustee' s report shall be mailed to any Bondholder
who shall have filed his address with the City and requested such copy in writing.
Consulting Engineers: The City will retain Russell & Axon, Engineers, of Daytona Beach, Florida,
or other qualified and recognized engineers, to supervise the construction and acquisition of the present
project and after the completion thereof will retain on an annual basis said Russell & Axon, Engineers,
of Daytona Beach, Florida, or other qualified and recognized engineers, to perform the duties relating
thereto provided for in the Bond Resolution.
Remedies: Any holder of Bonds or any coupons appertaining thereto, or any trustee acting for
such Bondholders, 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, including the right to
the appointment of a receiver, existing under the laws of the State of Florida, or granted and con-
tained in the Bond Resolution.
The obligation evidenced by the Bonds shall not constitute a lien upon the Water and Sewer Sys-
tem, or any part thereof, or on any other property of or in the City, but shall constitute a lien only on
the Net Revenues derived from the operation of said Water and Sewer System.
Other Covenants and Provisions: The Bond Resolution and the Escrow Deposit Agreement con-
tain covenants and provisions other than those mentioned herein and, in all instances, reference should
be made to the Bond Resolution and Escrow Deposit Agreement.
CONCLUDING STATEMENT
The front cover page (Page 1), insofar as it relates to provisions of the Bond Resolution or the
Bonds, is a part of this Official Statement. An underwriter may add the interest rates and offering yields.
All information contained herein has been obtained from sources which are believed to be reliable;
however, such information does not purport to be complete in all respects and such information is sub-
ject to and qualified by the information in complete form and substance available in the original sources.
All persons participating in the preparation or distribution of this Official Statement make no guaranty
or warranty related to such information. In all instances, complete reference should be made to the
Bond Resolution, the Escrow Deposit Agreement, the instruments relating to the presently outstand-
ing revenue obligations of the City, the Engineering Report prepared by the Consulting Engineers
and all other sources of information identified in this Official Statement.
The Official Statement has been duly executed and delivered as of the day of September, 1964.
By:
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18