86-ZZZRESOLUTION NO. 86-ZZZ
A SUPPLEMENTAL RESOLUTION PROVIDING FOR THE
ISSUANCE OF $11,650,000 AGGREGATE PRINCIPAL
AMOUNT OF PUBLIC SERVICE TAX REVENUE BONDS,
SERIES 1986, OF THE CITY OF BOYNTON BEACH,
FLORIDA AUTHORIZED IN RESOLUTION NO. 86-XXX
TO BE ISSUED IN AN AGGREGATE PRINCIPAL AMOUNT
OF NOT EXCEEDING $11,650,000; FIXING AND
DETERMINING THE PRINCIPAL AMOUNT, INTEREST
RATES, MATURITY DATES, REDEMPTION PROVISIONS
AND OTHER DETAILS OF SAID BONDS; FINDING THE
NECESSITY FOR A NEGOTIATED SALE OF SUCH BONDS;
APPROUING AND AUTHORIZING THE DISTRIBUTION OF
AN OFFICIAL STATEMENT IN CONNECTION WITH SUCH
BONDS; AUTHORIZING THE EXECUTION AND DELIVERY
OF A BOND PURCHASE CONTRACT TO BE EXECUTED BY
AND BETWEEN THE CITY AND THE UNDERWRITERS OF
SUCH BONDS AND AWARDING THE SERIES 1986 BONDS;
PROVIDING FOR THE APPLICATION OF THE PROCEEDS
RECEIVED FROM THE SALE OF SAID BONDS;
AUTHORIZING THE PURCHASE OF A BOND INSURANCE
POLICY; DESIGNATING THE BOND REGISTRAR FOR
SAID BONDS; PROVIDING A COVENANT AS TO
COMPLIANCE TAX LAWS; RATIFYING
CERTAIN TAKEN BY THE CITY
COUNCIL AND THE : DIRECTOR; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Boynton Beach, Florida (the "City") is
authorized by its Charter (Chapter 24398, Laws of Florida, Acts
of 1947, as amended and supplemented and by Chapter 166, Florida
Statutes (collectively the "Act") to issue revenue bonds of the
City payable from Designated Revenues (as described in the Bond
Resolution hereinafter mentioned), for the purpose of paying the
cost of acquiring and constructing capital projects; and
WHEREAS, pursuant to Resolution No. 84-TTT, adopted by the
City Council. of the City (the "City Council") on September 5,
1984 (the "1984 Resolution"), the City has heretofore issued
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$4,000,000 aggregate principal amount of its Recreational
Facilities Revenue Bonds, Series 1984 (the "1984 Bonds") for the
purpose of refunding $4,000,000 aggregate .principal amount of
Recreational Facilities Revenue Bonds, Series 1982; and
WHEREAS, on October 21, 1986, the City Council adopted
Resolution No. 86-XXX (the "Bond Resolution"), authorizing the
issuance of not exceeding $11,650,000 aggregate principal amount
of Public Service Tax Revenue Bonds, Series 1986, of the City for
the purpose of providing funds, together with other available
funds, for paying the cost of the 1986 Projects described in the
Bond Resolution °(the "1986 Projects"); and
WHEREAS, as provided in the Bond Resolution, the principal
of, premium, if any, and interest on said Bonds are to be payable
solely from the proceeds received from Designated Revenues after
all payments and deposits, if any, required by the 1984
Resolution to be made from said proceeds have been made;
WHEREAS, the City Council has determined that because of the
unsettled nature of the municipal bond market and the subordinate
lien of said bonds, the sale of said Bonds through negotiation is
in the best interest of the City and that the sale of said Bonds
through negotiation with the Underwriters named in the Bond
Purchase Contract (hereinafter mentioned) is in the best interest
of the City; and
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WHEREAS, the City Council has received from William R. Hough
& Co. and Smith Barney, Harris, Upham & Co. Incorporated (the
"Underwriters") a proposal in the form of a Bond Purchase
Contract, to be dated October 30, 1986, by and between the City
and the Underwriters, relating to the sale of $11,650,000
of said bonds (the "Series 1986 Bonds") and the City Council has
determined that the acceptance of such proposal and the award to
the Underwriters of the Series 1986 Bonds is in the best
interests of the City and will effect the purposes set forth in
the Bond Resolution; and
WHEREAS, there have been presented to the City Council at
this meeting the following documents relating to the issuance of
the Series 1986 Bonds: (a) the Bond Purchase Contract and (b)
the form of an Official Statement, to be dated October 30, 1986
(the "Official Statement");
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BOYNTON BEACH, FLORIDA:
Section 1. The determinations referred to in the preambles
to this Resolution are hereby specifically redetermined and
affirmed. All terms used herein but not defined herein have the
meanings set forth in the Bond Resolution.
Section 2. The form and content of the Official Statement
presented to the City Council, together with such changes,
modifications, deletions and additions as may be deemed necessary
and appropriate, are hereby approved and authorized in all
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respects, and the Mayor and the City Manager are hereby
authorized and directed to execute and deliver such Official
Statement in the form presented to the City Council together with
such changes, modifications, deletions and additions as they,
with the advice of counsel, may deem necessary or appropriate,
such execution and delivery to be conclusive evidence of the
approval and authorization thereof by the City.
Section 3. The use and distribution of the Official
Statement and the Bond Resolution by the Underwriters in
connection with the marketing of the Series 1986 Bonds are hereby
ratified, approved and authorized.
Section 4. For the purpose of providing funds for paying
the Cost of the 1986 Projects, including the costs of issuing the
Series 1986 Bonds, the cost of a bond insurance policy and for
making a deposit to the Reserve Subaccount created by the Bond
Resolution, the City Council, pursuant to the authority granted
to it by the Act and as provided in Section 208 of the Bond
Resolution, hereby authorizes the issuance of $11,650,000
aggregate principal amount of revenue bonds of the City,
designated "City of Boynton Beach Public Service Tax Revenue
Bonds, Series 1986." The Series 1986 Bonds shall be Current
Interest Bonds, shall be dated as of November 1, 1986 and shall
consist of Serial Bonds maturing in the amounts on November 1 in
each of the years, and bearing interest at the rates shown below:
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Maturity
Principal
Amount
Interest
Rate
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
$325,000
340,000
355 000
375 000
390 000
415 000
435 000
460 000
490,000
520,000
550,000
585,000
625,000
670,000
715,000
4.0%
4.5
5.0
5.2
5.4
5.6
5.75
5.90
6.10
6.30
6.50
6.60
6.70
6.80
6.90
and Term Bonds maturing on November 1, 2006, bearing interest at
the rate of 7.125% per annum and having the Amortization
Requirements (as defined in the Bond Resolution) shown below:
Year
Amortization Requirement
2002 765,000
2003 815,000
2004 875,000
2005 940,000
2006 1,005,000
The Series 1986 Bonds shall be issued as fully registered
Bonds in the denomination of $5,000 or any integral multiple
thereof; interest on the Series 1986 Bonds shall be paid on May 1,
1987, and semiannually thereafter on each November 1 and May 1;
principal of the Series 1986 Bond shall be payable at the principal
corporate trust office of Florida National Bank, (the "Bond
Registrar"), in the City of St. Petersburg, Florida. Interest on
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the Series 1986 Bonds shall be paid by draft or check mailed to the
registered owner at the address shown on the registration books
kept by the Bond Registrar as of the 15th calendar day prior to the
interest payment date (the "Regular Record Date").
The Series 1986 Bonds may be exchanged and the transfer of the
Series 1986 bonds may be registered in the manner and at the times
as forth in the Bond Resolution.
Section 5. The Series 1986 Bonds maturing in the years 1987
through 1996, both inclusive, are not redeemable prior to their
respective stated dates of maturity. The Series 1986 Bonds
maturing on or after November 1, 1997 are subject to redemption, a~
the option of the City, on or after November 1, 1996, as a whole on
any date, or in part on any interest payment date, in inverse order
of their maturities and by lot within a maturity if less than all
of the Series 1986 Bonds of any one maturity shall be called for
redemption, at the following redemption prices (expressed as a
percentage of principal amount), plus accrued interest to the date
of redemption:
Redemption Period
(Dates Inclusive)
11/1/96 through 10/31/97
11/1/97 through 10/31/98
11/1/98 and thereafter
Redemption Price
(percent of Principal Amount)
102
101
100
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The Series 1986 Bond maturing on November 1, 2006 are subject
to mandatory redemption in part, by lot, on November 1, 2002 and on
each November 1 thereafter in the year and amounts (Amortization
Requirements) set forth below at a price equal to 100% of the
principal amount of the Series 1986 Bonds being redeemed plus
accrued interest to the redemption and without premium:
Year Amount
2002 765,000
2003 815,000
2004 875,000
2005 940,000
2006 1,005,000
As provided in the Bond Resolution, notice of such redemption
shall be made at least thirty (30) days prior to the redemption
date, shall be signed by the Fiscal Agent, shall be filed with the
Bond Registrar and the Fiscal Agent, and shall be mailed by the
Bond Registrar, postage prepaid, to all registered owners of Series
1986 Bonds to be redeemed at their addresses as they appear on the
registration books, but any defect in such notice or the failure to
so mail any such notice to the owner of any Series 1986 Bond shall
not affect the validity of the proceedings for redemption of any
other Series 1986 Bonds.
Section 6. Simultaneously with the delivery of the Series
1986 Bonds, the proceeds of the Series 1986 Bonds (including
accrued interest) and certain other moneys received by the Fiscal
Agent shall be applied by the Fiscal Agent as follows:
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(1) The amount received as accrued interest on the Series
1986 Bonds shall be deposited to the credit of the Principal and
Interest Subaccount in the Sinking Fund Account;
(2) A sum equal to the amount set forth in a certificate of
the Finance Director delivered on the date of delivery of the
Series 1986 Bonds (such amount not to exceed $1,078,581.25) shall
be deposited to the credit of the Reserve Subaccount;
(3) A sum equal to all or a portion of the financing expenses
attributable to the issuance of the Series 1986 Bonds shall be
deposited in a special bank account and applied to the payment of
such expenses;
(4) A sum equal to the insurance premium and any associated
costs incurred in connection with the purchase of the bond
insurance policy hereinafter authorized shall be paid in the manner
required by the Insurer; and
(5) The balance of said proceeds shall be deposited to the
credit of the Construction Account and shall be applied to the
payment of the Cost of Projects in accordance with Article IV of
the Bond Resolution.
Section 7. The following bank[s] or trust compan[ies] in the
indicated cit[ies]are] each hereby appointed for the functions
indicated for the Series 1986 Bonds:
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Name of Bank or
Trust Company
Florida National Bank
Function
Bond Registrar
Location
St. Petersburg, Florida
Section 8. The City Council hereby authorizes the obtaining
of, and payment of the premium for, a bond insurance policy (the
"Bond Insurance Policy") to be issued by MBIA, White Plains, N.Y.
with respect to the Series 1986 Bonds, which Bond Insurance Policy
shall unconditionally and irrevocably guarantee to any owner of the
Series 1986 Bonds, other than the City, the full and complete
payment of the principal of and interest on the Series 1986 Bonds,
as such payments shall become due.
Section 9. Any notice, demand, direction, request or other
instrument authorized or required by the Bond Resolution to be
given or filed shall be deemed to have been sufficiently given or
filed if and when sent by certified mail, return receipt requested
(a) to the City, if addressed as set forth in Section 1202 of the
Bond Resolution and (b) to the Bond Registrar [and Fiscal Agent],
if addressed to
Florida National Bank
424 Central Avenue
St. Petersburg, Florida 33701
Attention:
Telephone:
Section 10. The City Council hereby awards the Series
1986 Bonds to the Underwriters in the amounts, maturing and bearing
interest at the interest rates set forth in Section 4 of this
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Resolution and at the prices set forth in the Official Statement
and the Bond Purchase Contract. The form, terms and provisions of
the Bond Purchase Contract presented to the City Council are hereby
approved and authorized in all respects, and the Mayor and the City
Clerk are hereby authorized and directed to execute and deliver, on
behalf of the City, the Bond Purchase Contract effecting the award
of the Series 1986 Bonds, such execution and delivery to be
conclusive evidence of the approval and authorization hereof by the
City Council. The receipt by the City of information required by
the provisions of Section 218.385, Florida Statutes, as amended, is
hereby acknowledged.
Section 11. The Series 1986 Bonds, upon their execution in
the form and manner set forth in the Bond Resolution, shall be
deposited with the Bond Registrar for authentication, and the Bond
Registrar is hereby authorized and directed to authenticate and,
upon due and valid execution of the Bond Purchase Contract by the
proper parties thereto, to deliver said Series 1986 Bonds to the
Underwriters against payment therefor in accordance with the
subject to the provisions of Section 208 of the Bond Resolution and
in accordance with the Bond Purchase Contract.
Section 12. The City covenants to comply with certain
restrictions, contained in the Internal Revenue Code of 1986, as
amended, as to the use, expenditure, and investment of proceeds of
the Series 1986 Bonds and the rebate of a portion of investment
earnings on certain amounts, including proceeds of the Series 1986
Bonds, to the federal government.
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Section 13. The officers, agents and employees of the City
and the officers and agents of the Bond Registrar are hereby
authorized and directed to do all acts and things, including the
execution and delivery of any certificates and the execution,
delivery and recordation of any required financing statements,
termination statements or continuation statements, required of them
by the provision of the Series 1986 Bonds and the Bond Purchase
Contract for the full, punctual and complete performance of the
terms, covenants, provisions and agreements of the same and also to
do all acts and things required of them by the provisions of this
Resolution and the Bond Resolution.
Section 14. The Mayor, the City Clerk or the City Manager, or
any of them, are further authorized and directed (without
limitation except as may be expressly set forth herein) to take
such action and to execute and deliver any such documents, deeds,
certificates, undertakings, agreements or other instruments as
they, with the advice of counsel, may deem necessary and
appropriate in order to effect the transactions contemplated by the
Series 1986 Bonds, the Bond Resolution, this Resolution and the
Bond Purchase Contract.
Section 15. This Resolution shall become effective
immediately upon its passage.
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PASSED AND ADOPTED this 30th day of October, 1986.
Mayor
(Seal)
ATTEST:
- C~Clerk
I Hereby Certify That I
Have Approved The Form And
Correctness Of This Resolution
City 'Attorney