O#202202 NO.
AN ORDINANCE PROVIDING FOB THE ACQUISITION AND
CONSTRUCTION OF EXTENSIONS AND ADDITIONS TO THE
WATER SYSTEM OF THE CiTY OF BOYNTON BEACH AND AUTH-
ORIZING THE ISSUANCE OF WATER REVENUE CERTIFICATF2~
TO PAY THE COST OF SAID IMPROVEMENTS.
BE IT ENACTED BY THE CITY COMMISSION OF THE CITY OF
BEACH, FLORIDA:
ARTICLE I
BOYNTON
STATUTORY AUTHORITY, FINDINGS AND DEFINITIONS
1. AUTHORITY OF THIS ORDINANCE. This Ordinance is adopted pursuant
to the provisions of Chapter 8918, Special Acts of the Legislature of
the State of Florida~ 1921, and amendments thereof andsupplements
thereto, being the Charter of the City of Boynton Beach, and other
applicable provisions of'law.
2. FINDIN$S. It is herekv found and determined as follows:
A. That the City of Boynton Beach now owns, operates and
maintains a Water System as a public utility and has so owned, operated
~nd maintained such Water System since about June 1, 1923; that such Water
System includes all tanks, standpipes, pumps, pipes, mains, treatment
plants, meters and all other property and equipment used in or connected
with the operation or maintenance of such system or the furnishing of
water for individual~ commercial, municipal or other use te the res-
idents and inhabitants of the City of Boynton Beach.
B. That the City derives Revenues from rates, fees and charges
made and collected for the services and facilities ef said Water System,
'and the Revenues derived by the City from said Water System are not
pledged or encumbered in any manner and that no obligations of any
kind or nature are chargeable against the Revenues of any part of said
Water ~ystem.
C. That it is necessary for the protection of the peace~ health,
prosperity, safety and welfare of the inhabitants of the City that the
Water Sys%em be improved by extensions and additions thereto, including
the installation of water mains, the erection of a reservoir and general
improvements to the water plant.
D. That the net Revenues derived by the City from the Water
System, over and above the cost of operation and maintenance, will be
sufficient, together with the increased Revenues te be derived from
the extensions' and i~rprovements of said Water System, to pay the
principal of and interest on all of the Water Revenue Certificates
issued pursuant to this Ordinance, as hereinafter provided, and to make
all reserves, sinking f~nd and other payments provided for in this
Ordinance.
E. That the principa% of and interest en the Certificates to be
issued pursuant to this 0~dinance and all of the reserve, sinking fund
and other payments provided for in th~s Grdinance will be paid solely
from the Revenues derived by the City 'from the operation of said
Water system, and itwill never be necessary or required to use the taxing
peweref said ~ity to pay the principal ef and interest on the Water
Revenue Certificates to be issued pursuant to this Ordinance or to make
any of the reserve, ~inking fund or ether payments provided for in this
Ordinance, and the Water Revenue Certificates.issued pursuant to this
Ordinance shall ~ot constitute a lien upon any ef the properties ef said
Water System or upon any ether property whatsoever of the City.
F. That the City's Water System shall be improved and extended
substantially in accordance with the plans and specifications prepared
by Chester F. Wrigh~and heretofore filed in the office of the City Clerk
at anestimated cost of $6o,090, consisting of'the proceedsef the
obligations authorized by ~hls Ordinance. Su~n cost shall be deemed to
include the cost of the construction or acquisition of the improvements,
extensions and additions te said Water System, including the acquisition of
any lands or interest therein and of any fixtures er equipment or properties
deemed necessary or ~onvenient therefor; interest upon Cer~ificates issued
pursuant to this Ordinance prior to, and during, and for six months after
the completion of such'improvements, extensions and additions; engineering
and legal expenses; expenses for estimates of costs and o~ Revenues;
expenses for plans, specifications and surveys; administrative expenses
and such other expenses as may be necessary or incidental to the financing
authorized by this Ordinance, and the construction or acquisition of the
improvements~ extensions and additions authorized by this Ordinance and
the placing of same in operation.
3. ORDINANCE TO CONSTITUTE CONTRACT. In consideration of the
acceptance of the Certificates authorized to be issued hereunder by those
who shall hold the same from time to time, this Ordinance shall b~ deemed to
be and shall constitute a contract between the City and such Certificate hold,
ers, and the 'covenants and agreements herein set forth to be performed
by said City shsll be for the equal benefit, protection and security of
the legal holders of any and all of such Certificates and the coupons
att. ached thereto, all of ~hich shall be of equal rank and without preference~
priority or distinction of any of the Certificates or coupons ever any
other thereof except as expressly provided therein and herein.
$. DEFINITIONS. The following terms shall have the following
_anmnEs in this Ordinance unless the text otherwise expressly requ~es:
(A) "City" shall mean the City of Boynton Beach, Florida.
(B) "Act" shall mean the Chsrter of the City, being Chapter 8918,
Special Acts of the Legislature of the State of Florida for the year
1921, .and amendments thereof and supplements thereto.
(C) "Certicifcates~ shall mean the $60,000 Water Revenue Certificates
rigin~lly authorized to be issued pursuant to this Ordinance and the
interest coupons attached to said Certificates~ and shall also be deemed
to include any Certificates, and the interest coupons attached thereto,
subsequently issued pursuant to and within {he limitations of this
Ordinance providing for the creation of additional obligations payable
from the Revenues of said ~Jater System and ranking pari passu as to lien
and sou6e and security for the pa.vment from said Revenues with the $60,OOO
Certificates originally authorized by this Ordinance.
(D) "Holder of Certificates or "Certificatehold~r,, or any
similar term, shall mean any personwho shall be the bearer or owner of
any outstanding Certificate or Certificates registered to bearer or
not registered, or the registered owner of any Outstanding Certificate
or Certificates which shall at the time be registered other than to
bearer, or of any coupons representin~ interest accrued or to accrue
on said certificates. -
(E) "Water System" shall mean the complete Water System now owned
and operated by the City, together with any and all improvements,
extensions and additions thereto hereafter constructed or acquired,
and any and all property now er hereafter owned by the City which shall
be used in connectlc~ with said Water System and sh~ll include
(without being limited to) all lands or interest therein, plants,
buildings, machinery, franchi~s~ pipes, fixtures, equipment and all
property, rea! or personal, tangible or intangible, now or hereafter
owned or used in connection with said Water System.
(F) "Facilities- shall mean all the facilities of said Water
System, and all parts thereof now owned by the City, or constructed
or acquired pursuant to this Ordinance, and also any facilities which
may hereafter be added to said Water S~stem, or any parts 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.
(G) "Revenues, shall mean all rates, fees, charges or other
income received by the City, or accrued te the City, er any board or
agency thereof in control of the management and operation of said
Water System~ and all parts thereof, from the operation of said Water
Syste~,~. all as calculated in accordance, with sound accounting practice.
(H) "Operating Expenses~ shall mean the current expenses, paid
or accrued, of operation, maintenance and repair of said Water System
and its facilities and shall include, without limiting the generality
of the foregoing, insurance premiums and administrative expenses of the
City, and charges for the accumulation of appropriate reserves not
annually recurrent but which are such as may reasonably be expected to
be incurred in accordance with~sound accounting practice. "Operating-
Expenses, shall no~ include any allowance for depreciation excep~ to the
extent expressly herein provided.
(I) Words imOorting singular number shall include the plural
number in each cas~ and vice versa, and words importing persons shall
include firms sm~d corporations.
~RTICLE I1
AL~HORIZATION, TERMS, EXECUTION, REGISTRATION
AND ISSUE OF CERTIFICATES
%. AUTHORIZATION OF CERTIFICATES. Subject and pursuant to the
provisions of this Ordinance. Certificates of the City of Boynton Beach
to be known as "Water Revenue Certificates". are hereby authorized to be
issued in the aggregate principal amount of not exceeding Sixty Thousand
Dollars ($60,000).
6. DESCRIPTION OF CERTIFICATES. The Certificates shall be dated
June 1, 19~?; shall be in the denomination of $1,O00 each; shall be
numbered from 1 to 60, inclusive; shall bear interest at the rate of four
per centum per a~numpayable semi-a~ually on June 1 and December 1 of
each year, and shall mature, in numerical order, lowest numbers first, en
June 1 of each year, ~u the years and amounts as follows:
$2,000 in each of the years ~959 to 1952, both inclusive; $3~000 in each
of the years 1953 to 1955, both inclusive; ~$,000 in each 9~t~h? y~a~r~
19%6 t? 19%9, both inclusive; $~,000 in each of the years 1~oo mo ±¥~j, both
inclusmve; $7,000 in 1964.
Said certificates shall be issued in coupon form; shall be payable with
respect to both principal a~d~interest in lawful money of the United
States ef ~merica at the principal office of the Chase National Bank,
New York, N~Y. and shall bear interest from their ~ate, payable in
a¢cordanc~1 with and upon surrender of the Lappurtenant interest coupons as
they severally mature.
7. EXECUTION OF CERTIFICATES AND COUPONS. Said Certificates shall be
executed in the name of the City by its Commissioners and countersigned
by its City Treasurer and its corporate seal shall be affixed thereto. In
case anyone or more of the officers who shall have signed or sealed any
of the Certificates shall cease to be such officer of the City before the
Certificates so Signed and sealed shall have been actually sold and
delivered, such Certificates may nevertheless be sold and delivered as
herein provided and may be issued as if the person who signed or sealed
such Certificates had not ceased to hold such office. Any Certificates
may be signed and sealed on behalf of the City by such person as at
the actual time of the execution of such Certificates Shall hold the
pr,per office in the City,. although at the date of such Certificates such
person may not have held such office or may not have been so authorized.
The coupons to be attached to the Certificates shall be authen-
ticated with the fac simile signature of the present or any future
Treasurer of said City, a~d. the ~itymay adopt and use for that purpose
the fac simile s~gnat~e of any ~?rson who shall have been such Treasurer
at any time on or after the date of the Certificates, notwithstanding that
he may have ceased to be such Treasurer, at the time when said Certificates
shall be actually sold and delivered.
8~ _NEGOTIABILITY A~ REGISTRATION. The Certificates 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, in accepting any of said Certificates
or the coupons appertaining thereto, shall be conclusively deemed to have
agreed-that such 'Certificates shall be and have all of the qualities and
incidents eT negotiableinstruments under the law merchant and the
Negotiable Instruments Law ef the State of Florida, and each successive
holder shall further be conclusively deemed to have agreed that said
Certificates shall be incontestable in the hands of a bona fide holder
for value in the ms~nar orovided hereinafter in the form of .said
Certificates.
The Certificates 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 Treasurer of the City, such registration to be noted on the back
of said CertificStes in the space provide~ therefor. After such regis- .
tration as to principal only, or both principal and interest, no ~rans
fer of th8 Certificates shall be valid unless made at said office by
the registered owner, or by his duly authorized agent er representative
and similarly noted on the Certificates, but the Certificates 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 Certificates 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.
9. CERTIFICATES MUTILATED, DESTROYED, STOLEN OR LOST. In case
any certificate shall become mutilated or be destroyed, Stolen or lost,
the City may in its discretion issue and deliver a new Certificate with
all unmatured coupons attached of like tenor 'as the Certificate and attached
coupons, iS any, so mutilated, destroyed, stolen or lest, in exchange a~
substitution for such mutilated. Ce~tificate,'upon surrender and cancell
ation of such mutilated Certificate and attached coupons, if any, or in
lieu of~an substitution for the Certificate 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 re~alatlons and conditions as the City may prescribe
and paying such expense as the City ma? incur, ill Certificates and coupons
so surrendered shall be cancelled by the Treasurer and held for the
account of the City. If any such Certificate or coupon shall havematured
or be about te mature, instead of issuing a substituted Certificate or
coupon, the City may pay the same, upon being indemnified as aforesaid,
a~d if such Certificate or coupon be lost, stol~n or destroyed, without
surrender thereof.
Any such duplicate Certificates 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
Certificates or coupons be at any time found by any one, and such
duplicate Certificates amd coupons shall be entitled to equal and
proportionate benefits and rights as to lien and source and security
for payment f~om the Revenues of the Water System with all other
Certificates and coupons issued hereunder.
lC. FORM OF CERTIFICATES AND COUPONS. The text of the Certificates
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 Ordinance, or any subsequent ordinance
or resolution adopted prior to the issuance thereof:
No. UNITED STATES GFAMERICA $!,000
STATE OF FLORIDA
CITY OF BOYNTON BEACH
WATER REVENUE CERTIFICATE
KNOW ALL MEN BY THESE PRESENTS That the City of Boynton Beach, in
Palm Beach County, Florida, for value received, hereby promises to pay
te the bearer, or, if this Certificate be registered, to the registered
holder as herein provided, on the 1st day of June, 19 , from the revenues
hereinafter mentioned, the principal sum of
ONE THOUSAND DOLLARS
with interest thereon at the rate of four per centum per annum payable
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annually on the 1st day of June and the 1st day of December of each year
upo~ the presentation and surrender of the annexed coupons as they
severally fall due. Both principal of and interest on .this Certificate
are payable in lawful money of the United States of America at the
principal office of the Chase National Bank, New York, N.Y.
This Certificate is one of an authorized issue of Certificates in
the aggregate principal amount of $60~00G of like date, tenor and effect,
exeept as-to nmmber ~ud date of maturity, issued to finance the cost of
the construction er acquisition ef improvements, extensions and additions
to the Water Sxstem Owned and operated by the City of Boynton Beach. under
the authority/~ in full compliance wit~ the Co'nstitut~n and ~ta~utes
of the State of ~lerida, the ~harter ef the City of Boynton Beach, being
Chapter 8918, Actsof the Legislature of Florida for the year 1921, as
amended and supplemented, and other applicable statutes, and an
duly adopted by the City Commission of sa~d City, and is subject to
the terms and conditions of said Ordinance.
This Certificate and the coupons appertaining thereto are payable
solely~ from and secure~ by a lien upon and pledge of the net revenues
derived from the 0potation of the water system of the City of Boynten-
Beach, in the manner provided in the Ordinance authorizing this issue
o2 Certificates! a~.d d~es net constitute an indebtedness of the City of
Boynton Beach wmt~in t~e meaning of any constitutional, statutory or
charter pre~isien er lmmitation, and it is expressly agreed by the helderl
of this Certificate that such holder shall never have the right to
require or compel the exercise of the taxing power of said City for the
payment of the principal of and interest on this 0ertificate er ~he
making of any sinking fund, reserve or other payments provided, for in
the Ordinance authorizing this issue of Certificates.
It is further agreed between the City of Beynten Beach and the holder
of this Certificate that this Certificate and the o~ligation evidenced
thereby shall not constitute a lien upon the City's water system, or any
part thereof~ or any. other property of or in the City of Boynton Beach,
but shall constitute a lien only on the net revenues derived from the
operation ef said water system in the manner provided in said Ordinance.
The City in said Ordinance has covenanted and agreed with the holders
of the Certificates of this issue to fix and establish and maintain such
rates and collect such fees or other charges for the services and
facilities of its water system, and to revise the same from time to time
whenever necessary, as will always provide revenues sufficient to pay,
and out of said revenues shall pay, as the same shall become due, the
principal ef and interest on the Certificates ef this ~ue, in addition
to paying, as the same shall become due, the necessary expenses ef
operatin$ and maintaining said water system, all reserves or sinking funds
or other payments provided for in said Ordinance, and all other obligations
payable out of the revenues of said water system, and that such rates,
fees or other charges shall not be red~ced so as to be insufficient
to provide revenues for such purposes, and said City has entered into
certain further covenants with the holders of the Certificates ef this
issue for the terms of which reference is made to said 0rdtn~ce:
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I~ is hereby certified and recited that all act.s~,~ conditions
and things required to exist, to happen and t° be performed precedent
to and in the issuance of this Certificate, exist, have happened and have
been performed in regular and due form and t~e as required by the
statutes and Constitution of the State of Florida applicable thereto,
and that the issuance of this Certificate, ~nd of the issue of
Certificates of which this Certificate is one, does not viol~t~ any
constitutional, statutory or charter limitation.
The Certificate~ and the eouoons appertaining thereto, is, and
has all ~he qualities and inclden~s of~a negetiaBt~ instrument ~nder
the law merchant and the Negotiable Instruments Law of the State of
Florida, and the original holder and each successive holder of this
Certificate~ ~r of the e0uponsappertaining theret~ shall be
conclusively deeme~ by his acceptance thereof to.have agreed that this
C~rtificate and the coupons appertaining thereto shall be and have
ail the qualities and incidents of negotiable instruments ~nder the
law merchant and the Negotiable Instruments Law of the State of Florida.
The original holder an~ each successive h~lder of th~s Certificate, and
of the coupons apoertaining thereto~ shall be conclusively dee~ed to
have agreed and c~nsented to the following ter~s and conditions:
(a) Title to this Certificate, u~less 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 under the law merchant and in the Negotiable Instruments Law
of the State of Florida.
(b) Any person in possession of this Certificate~ unless
registered as herein provided, or of the interest coupons hereunto
appertaining, regardless of the manner in which he shall have
acquired possession, is hereby authorized to represent himself as the
absolute owner thereof, and is hereby granted power to transfer a~solute
title t~ereto by delivery thereof te.a bona 'fide purchaser, that ~s to
anyone who shall purchase the same for value (present or antecedent)
without notice of prior defenses or equities or claims efownership
enforceable against his transferror; every prier taker or ~wner of
this Certificate, unless registered as herein provided, and of the
annexed interest coupons, waives and renounces all of his equities
and rights therein in favor of every such bona fide purchaser, and
every such bona fide purchaser shall acquire absolute title thereto
and te all rights reoresented thereby; ar~
(c) Xhe City of Boynton Beach, Florida, may tre~t the bearer of
this Certificate, unless registered as herein' provided, or of the inter~
est coupons hereunto appertaining as the absolute owner thereof for all
p~rposes without being affected by any notice to the contrary..
This Certificate may be registered as te principal only, or as to
both principal and interest in accordance with the provisions endorsed
thereon.
IN W!TNESS WHEREOF said City of Boynton Beach, Florida, by its
Commission, has issued this Certificate and has caused the same to be
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signed by each of its Commissioners and it~ corporate seal'to be
affixed hereto, countersig~ed by the Treasurer of said City, and has
caused the interest coupons hereto attached to be executed with the
fac simile signature of its Treasurer, all as of the 1st day of
June, 19~7.
CITY OF BOYNTON BEACH, FLORIDA,
.Countersigned:
City Treasurer
Member of City Commission
Member of City Commission
Member of City Commission'
FORE OF COUPON
No. -- $
On the 1st day of , 19 , the City ef Boynton Beach,
.Florida, will pay to the bearer at the principal office of the
Chase National Bank, New York, N.Y. from the revenues described in the
Certificate to ~hich this cou~on is attached, the sum of
Dollars ($ ) in lawful money of the United
S~ates-of America, upon presentation snd surrender of this coupon~ being
six months interest then due on its Water Revenue Certificate, dated
June l, 1957~ No. .
~TY OF BOYNTON BEACH~ FLORIDA,
By .....
City Treasurer
(FORM OF VALIDATION CERTIFICATE)
Validated and confirmed by decree of the Circuit Court of the
Fifteenth Judicial Circuit of Florida, %n and for Palm Beach County,
randered on the day of , 19~7.
Clerk ef the Circuit Court of Palm Beach
County, Florida.
(PROVISION FOE REGISTRATION)
This Certificate may be registered in the name of the holder
on the books to be kept by the City Treasurer as Registrar, or such
other Registrar as may hereafter be duly appointed, as to principal
only, such registration being noted hereon by said Registrar in
the registration blank below after which no transfer shall be valid
unless made on said bQ~oks by the registered holder or attorney duly
authorized and similarly noted in the registration blank below, but
it may be discharged 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 Certificate 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~ the registered holder, in which event the Registrar
shall note in the registration blank below that this Certificate is
registered as to interest as well as principal and thereafter the
interest willbe remitted by mail in New York exchange to the
registered holder. ~ith the consent of the holder and of the City of
Boynton Beach and this Certificate, when converted into a Certificate
registered as teboth principal and interest, may be reconverted into
a ~coupon Certificate and again converted into a~C~rtificate regis-
tered as to both principal amd interes~ as hereina~ve provided.
Upon reconversion of this Certificate ~hen registered as to principal
and interest into a coupon Certificate, coupons representing the interest
to accrue ~oen the Certificate to date of maturity shall be attached
hereto by the Registrar and the Registrar shall note in the regis-
tration blank below whether the Certificate is registered as to
principal only or payable to bearer.
Date of In Whose Name Registered Manner of
Registration Registration
Signature
of Registrar
I1. CERTIFICATES NOT BE INDEBTEDNESS OF THE CITY. Neither the
Certificates nor coupons shall be or constitute a~indebtedness of the
City, but shall be payable solely from the Revenues of the Water
System asherein provide. No holder or holders of any Certificate
issued hereunder~ or of any coupon appertaining thereto, shall ever
have'the right to compel~the exercise of the taxing power of the City
to pay said Certificates or the interest thereon, or be entitled to
payment of such prlncmpal and interest from any ot~er funds of the
City except the net Revenues of the Water Sys tom as provided herein.
12. CERTIFICATES SECURED BY PLEDGE OF REVENUES~ The payment
ef the debt service of all of the Certificates issued hereunder shall
be secured forthwith equally and ratably by an exclusive lien on the
net Revenues derived from the City's Water System, ~ubject.only to the
payment of operating expenses as in Section 15 heremn provmded. The net
Revenues derived for Said Water System in an amount sufficient to pay
the principal of an interest on the Certificates herein au thorized,
and to make the payments into the reserve and sinking fUnds and all
other payments provided for in this Ordinance, are hereby irrevocably
pledged to the payment of the principal of and interest on the Certi-
ficates herein authorized as the same become due.
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13. APPLICATION OF CERTIFICATE PROCEEDS. All moneys received
from the sale of any or all of the $60,000 Certificates originally
authorized and issued pursuant to this Ordinance shall be deposited
by the City in a special accoun~ and shall be used for and applied
by the City solely to the payment of the cost of the construction
or acquisition of the improvements, extensions~and additions to said
Water System, and purposes incidental thereto, authorized by this
Ordinance, and for no other purpose whatsoever. If for any reason
such proceeds, or any'part thereof, are not necessary for, or are
not applied to, such ourposes, then such unapplied proceeds shall
be deposited by the City in the Sink lng Fund to be established
pursuant to subsection D of Section 15 of this Ordinance and shall
be used to pay interest on and principal of the Certificates. All
such proceeds shall be and constitute a trust fund for s~ch purposes
and there is hereby created a lien upon such money, until so
applied, in favor of the holders of the Certificates.
15. COVENANTS OF THE CITY. So long as any of the Certificates
shall be outstanding unpaid, or until there shall have been set
apart in the Sinking Fund herein established a sum sufficient to
pay, when due, the entire principal of the Certificates remaining
unpaid, together with interest accrued and to accrue thereon~ the
~ity covenants with the holders of any and all of the .Certificates
ssued 'pursuant to this Ordinance as follows:
A. RATES. That the City will fix~ establish and maintain
such rates and collect such fees or other charges for the services
and facilities of its Water System~ and revise same from time to
time whenever necessary, as will always provide Revenues sufficient
to pay, in the manner specified in Section 15 of this Ordinance,
and~ ou% of said Revenues shall pay, as the same shall become due,
the principal of and interest on the Certificates, in addition
te paying, as the same shall become due, the necessary expenses of
operating and maintaining such Water System, all reserve er sinking
funds or other payments provided for in this Ordinance, and all
other obligations or indebtedness payable out of the Revenues of
such Water System, and that such rates, fees, rentals and other
charges shall not be reduced so as to be insufficient to provide
Revenues for such purposes.
B. REVENUE FUND. That the entire gross Revenues derived
from the operation of said Water System shall be deposited in a
special fund in a bank or trust company satisfactory to the orig-
inal purchaser of the Certificates from the City; or in the event
of the sale ef all of said Certificates by the original p~3rchaser,
then in a bank or trust company in the State of Florida ~hich is
eligible under the state laws to receive deposits of State and
municipal funds, which fund is hereby designated as the "Water Revenue
Fund". Said Water Revenue Fund shall constitute a trust fund for the
purposes provided in this Ordinance and shall be kept separate
and distinct from all other lands of the City and used only for the
purposes and in the mam_uer provided in subsection D of this
Section lb.
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C. OPERATION AND MAINTENANCE. That it will maintain in good
condition said Water System and will operate the same in an efficient
andeconomlcal manner,.making such expenditure for equipment and
for renewal, repair and replacement as may be prooer for the eton- -
omical operation and maintenance thereof from the- Water Revenue Fund.
D. DISPOSITION OF REVENUES. That all Revenues at any time
remaining on deposit in the Water Revenue Fund shall be disposed of
in the following order and man,er:
1. Revenues shail first be used for the payment of all
current operation expenses including, without limitation, adminis-
trative~expenses, cost of materials and supplies, insurance,
necessary cost of.repairs and all other costs and expenses of
maintenance, operation and upkeep.
2. From the money_s, remainin.g in the Water Revenue Fund
the City shall not later than the fmrst day of May and the first
day of November in each year, beginning with May l~ 1948, apportion
and set apart out of the Water Revenue Fund and deposit in a fund
to be known as the "Water Revenue Certificate Sinking Fund,, which
is hereby established, such sums as will be sufficient to Day one-
half of all the princioal and interest on the ertmfmcates issued
hereunder which shall ~ature and become due within such year.
The City shall also from moneys remaining in said Water
Revenue Fund deposit in a Reserve Account in said Water Revenue~
Certificate Sinking Fund on the first day of May and the first day
of November of each year an amount equal to fifty per centum of all
other amounts required to be paid for maturing principal and interest
into said Water Revenue Certificate Sinking F~ud, as provided in the
above paragraph, on said dates; provided, however, that no further
payments shall be re~uired to be made iDto said Reserve _~ccount
as long as there sha~l be on deposit therein the s~ of $?~500.
Moneys in the Reserve Account may be invested in d' *
lrec ~
obligations of the United States or must otherwise be ma~ntained
in cash.
Moneys in said Reserve Account shall be used only for the
purpose of the payment of maturing princioa~ of or interest on the
Certificates when t~e other moneys in the Water Revenue Certificate
Sit.king Fund ave insufficient therefor~ and for no other purpose.
The City shall not be reeuired to make any further oayments
into said Water Revenue ~ ' ' - ~
~ertmfmeate Sinking Fund or into the Reserve
Account in said Water Revenue Certificate Sinking Fund when the
aggregate amount of funds in both said Water Revenue Certificate
mrak~ng Fund and said Reserve Account are at least eeual to the
aggregate principal amount of Certificates issued pursuant to this
Ordinance then outstanding, plus the e~ouut of interest then due
o? thereafter to become due on said Certificates then or, standing.
-12-
(3) Thereafter Revenues shall be used to establish and set UP a
Renewal and Replacement Fund and the City shall pay into said fund from
the Water Revenue Fund on the first day of May of each year beginning with
May l, 1998, an amount which shall be equal to five per cent~m of the
gross Revenues actually received and collected for the services and
facilities of said Water System during the preceding ye8~, less the
aggregate amount actually expended during such preceding year far main-
tenance of said Water System pursuant to subsection D (1) of Section lg
of this Ordinance. The funds in such Renewal and Replacement Fund shall
be used only for the purpose of paying the cost of extensions, improve-
ments or additions to, or the replacement of capital, assets of said
Water System or any part thereof.
($) If on any semi-annual payment date the Revenues are insmfficient
to place the required amount in any of the Funds ashereinbefore provided,
the deficiency shall be made up in the subsequent payments in addition
to the payments which would otherwise be required to be made into the
Funds on the subsequent payment dates.
(5) Thereafter~ the balance of any Revenues remaining after all
other required payments into the Funds provided above have been mad%
may in t&e discretion of the City~ be used for additional reserves for
future operating expenses, capital additions, including the purchase
of equipment, deposited in the Water Revenue Certificate Sinking Fund,
or in any other manner provided by law.
(6) The Water Revenue Certificate Sinking Fund and the Reserve
Account therein, the Renewal and Replacement Fund, and all other special
Trust funds set up and created by this Ordinance shall constitute funds
for the purposes provided herein for such Funds, and shall be deposited
and maintained in the same bank or trust company in which the Water
Revenue Fund is maintained. All of such funds~ including the Water
Revenue Fund~ shall be continuously secured in the same manner as State
and municipal deposits of funds are required to be secured by the laws
of the State of Florida.
E. SALE OF THE WATER SYSTEM. That said Water System may be sold,
mortgaged, leased or otherwise disposed of only as a whole or substan-
tially as a whole, and oP_ly if the Set proceeds to be realized shall be
sufficient fully to retire all of ~e Certificates issued pursuant to this
Ordinance and all interest thereon to their respective dates of maturity.
The proceeds from such sale, mortgage, lease or other disposition of
said Water System shall immediately be deposited in the Water Revenue
Certificate Sinking Fun8 and shall be used~only for the purpose of paying
the principal of and interest on the Certificates issued pursuant to this
Ordinance as the same shall become due. After all of such principal
and interest shall have been duly paid and retired any balance remaining
in said fund shall be remitted to the City.
The foregoing provision notwithstanding~ the City sh~lt h'a~e
and hereby reservesthe right to sell, lease or otherwise dispose of any
of the property comprising a part. of said Water System hereafter deter-
mined in the m~nner provided herein to be no longer necessary, useful
or profitable in the operation thereof. Prior to ar~y such sale, lease,
or other disposition of said property, if the amount to be received
therefor is not in excess of five thousand dollars ~$5~O00), the general
manager or other duly authorized officer in charge of such Water System
shall make a finding, iH writing, determining that such property
comprising a part of such Water System is no longer necessary, useful
or profitable in the operation thereof, and such proceeds shall be
deposited in the Ren~al and Replacement Fuud and used only as
provided ~erein for-s~ch fund. If the amount to be received from
s~ch sale, lease or other disposition of said property shall be in
excess of five thousand dollars ($~,000) but not in excess of
twenty-five thousand dollars ($25~000)~ the general manager or other
duly authorized officer in charge of such Water System ah~ll first
make a.finding, iR writing, determining that such property comprising
a part of such Water System is no longer necessary, useful or profit-
able in the operation thereof, and the governing body of said City
shall, by resolution duly adopted, approve and concur in the finding
of the general manager or other duly authorized officer, and authorize
such sale~ lease or o~her disposition of said property. The proceeds
derived from a~J such sale~ lease or other disposition of said
property, in excess of five thousand dollars ($~,O00) and not in
excess of twenty-five thousand dollars ($2~,000) shall be placed in
the Water Revenue Certificate Sinking Fund provided for in this
Ordinance, and shall be used only for the purchase of Certificates
at ~ orice not greater than par aud accrued .interest. Such payment
of such proceeds into the Water Revenue Certificate Sinking Fnnd or
the Renewal and Replacement Fund shall not reduce the amounts required
~o be paid into said Funds by other provisions of this Ordinance.
No sale~ lease or other disposition of the properties of said
~ater System shall be made by the City if the proceeds to be derived
therefrom shall be in excess of twenty-five thousand dollars ($25,000)
and insufficient to pay all of the principal of Certificates then out-
standing and ~ll interest thereon to their respective dates of
maturity~ without the prior approval and consent~ in writing~ of the
holders or their duly authorized representatives, of sixty-six and
two-thirds per centum (66 2/~%) in amount of Certificates then out-
standing. The City shall prepare the form of such ap~moval and consent
for-execution by Certificate holders~ or their duly authorized repres-
entatives~ which form shall provide for the disposition of the proceeds
of the sale, lease or other disposition of such properties of such
Water System.
F. ISSUA~E OF OTHER OBLIGATIONS PAYABLE OUT O? REVENUES.
That the City will not issue any other obligations, except upon
the conditions and in the manner provided herein payable from,the
Revenues derived from the operation of said Water System~ nor volun-'
tarily create or cause to be created any debt, lien, pledge, assign-
ment, encumbrance or any other charge, haviE priority to or being on a
parity-with the lien of the Certificates issued pursuant to this
Ordinance~ and the interest thereon~ upon any'of the income and
Revenues of said Water System pledged as security therefor in this
Ordinance. Any other oblmgations issued by the City in addition to
the Certificates authorized by this Ordinance shall contain an express
statement that such obligations are junior and subordinant in all
respects to the Certificates~issued pursuant to this Ordinance as to
lien and source and security for payment from the Revenues of the
Water System.
G. I~SURANCE. That the ~ity will carry such insurance as is
ordinarily carried by private corporations owning and operating similar
utilities as the City's Water System, with a reputable insurance carrier
or c~riers against lo~s or damage by fire, explosion, hurricane, earth-
~uake~ cyclone, occupancy or other hazards and risks, which insurance
shall at all times be in an amount or amounts equal to the fair appraisal
value of the buildings, properties, furniture, fixtures, and equipment
of said Water System. In time of war, the City shall also carry in said
amount such insurance as may be available against loss or ~amage by
the risks and hazards of war.
H. BOOKS AND RECORDS. That the City will keep books and records
of said Water System which shall be separate and apart from all other
books, records, and accounts of the City~ in which complete and correct
entries shall be made Of all transactions relating to ~aid Water
System, and any holder of a certificate or certificates issued pursuant
to this Ordinance shall have the right at all reasonable times to
inspect said Water System and all parts thereof~ amd all records,
accottuts and data of the City relating thereto.
The City shall, at least once a year, cause the books, records
and accounts of said ~at~r System to be properly audited by a competent
au~itOr,.and shall mail, upon request~ and make available~ the report of
sa~d auditor at all reasonable times to any holder ~r holders of
Certificates issued pursuant to this Ordinance any taxpayer or citizen
of said City, or any person, receiving services from said Water System
or anyone acting for and in behalf of such taxpayer, citizen, or
Certificateholder or Certificateholders.
I. M~I~ENANCE OF WATER SYSTEM° That the City will complete the
construction or acquisition of the im.orovements~ extensions and additions
to said Water ~ystem authorized by this Ordinance with all practicable
dispatch, and thereafter will maintain such Water System in good
condition and continuously operate the same in an efficient manner and
at a reasonable cost.
J. SERVICES RENDERED TO THE CITY. That the City will not render
or cause to be rendered any free services of any nature by its Water
System, nor ~ill any preferential rates be established for users of the
same class~ and in the event that the City~ or any department~ agency,
instrumentality, officer or employee thereof, shall avail itself of the
facilities or services~ provided b~ said Water System, or any part thereof~
the same rates~ fees or charges applicable to other customers receiving~
like services in similar circumstances shall be charged the City and
any such department, agency, instrumentality, officer or employee. Such
charges shall be paid as they accrued~ and the City shall transfer from
its general funds sufficient sums to pay such charges. The Revenues
so received shall be deemed to be Revenues derived from the operation of
the Water System~ and shall be deposited and accounted for in the sam?
manner as other ~evenues derived from the operation of the Water System.
K. OPERATING BUDGET. That the City shall annually at least forty-
five days preceding each of its fiscal years~ ~repare and,adopt by
resolution of its governing body a detailed 9~ge~ of the estimated ex-
penditures for operation and maintenance 'of its Water System during such
succeeding fiscal year. No expenditures for the operation and mainten-
ance of said Water System shall be made in any fiscal year in excess
of the amounts provided therefor in such budget ~ithout a written
finding ~nd recommendation by the general manager of such Water System
or other duly authorized officer in ~na~ge thereof, which finding
and recommendation shall state in detail the purpose of and
necessity for such increased expenditures for the operation and main-
enance of said Water System, and no such increased expenditures
shall be made until the governing body of said City shall have
approved such finding and recommendation by a resolution duly adopted.
The City shall mail copies of such annual budget and all resolutions
authorizing increased expenditures for operation and maintenance to
any holder or holders of Certificates who shall file his address
with the City and request in writing that copies of all such budgets
and resolutions be furnished him or them,-and shall mske available
such budgets and all resolutions authorizing increaEed expenditures
for operation and maintenance of said Water System at all reasonable
times to any holder or holders of Certificates issued pursuant'to
this Ordinance, any taxpayer or citizen of said City~ or any person
receiving services from said Water System, or anyone acting for or in
behalf of such taxpayer, citizen, or Certificateholder or Certificate-
holders.
~ E
L. ISSUANC OF ~DDtTiONAL OBLIGATIONS. That no additional~'
obligations, as %n this subsection defined, payable out of the
Water Revenue Fund, shall be created after the issuance of any
Certificates pursuant to.this Ordinance, except under the conditions
and in the manner herein nrovided.
No such additional obligations shall be created unless the
average net earnings of said Water System during each of the preced~.ng
three years, together with the estimated average annual additional net
earnings to be received in succeeding years by reason of the
construction or acquisition_ of the imDrovements,_ extensions or
additions to the Water System to be financed by the issuance of such
additional obligations, shall equal at least two hundred per cent of
the average aunual debt service requirements on any and all ~ertifi-
cotes theretofore issued pursuant to this Ordinance and then out-
standing, regardless of the time or times of their issuance, and
the obligations proposed to be issued.
For the purpose of this subsection the estimated average
annual additional net earnings to be received in succeeding yesrs
by reason of the construction or acquisition of the improvements,
extensions or additions of the Water System to be financed by the
issuance, of such additional obligations, shall be determined in
accordance with, and shall not be in excess of, the written estimate
furnished by a quslified and recognized engineer, who shall not be
an employee of the City.
Net earnings as used in this subsection are defined, as gross
Revenues !ess operatingand maintenance expenses, which shall include
administrative exoenses~ costs of materials and supplies, insurance
and. maintenance expenditures.
The term additional obligations as used in this sub, etlon
shall be deemed to mean additional obligations evidenced by Certlfi-
cates issue~l under the provisions and within the limitations of this
subsection payable from the Water Revenue Fund pari passu with
Certificates originally authorized and issued pursuantto this Ordin-
ance. Su~n Certificates shall be deemed to have been issued pursuant
to this Ordinance the same as the $60~000 Certificates originally
authorized and issued pursuant to this Ordinance, and all of the
covenants and other provisions ef this Ordinance (except as to
details of such Certificates evidencing such additional obligations
inconsistent therewith), shall be for the equal benefit, protection
and security of the holders of the Certificates originally authorized
and issued pursuant tothis Ordinance and the holder's of any
Certificates evidencing additional obl%gations subsequently created
within the limitations of and in compliance with this subsection. All
of such Certificates, regardless of the time or times of their
issuance, shall rank equally with respect to their lien on the Revenues
of such Water System, and their source and security for payment from
said Revenues, without preference of any Certificate~ or coupon,
over any other.
The term additional obligations as used in this subsection
shall not be deemed.to include bonds, notes, certificates or other
obligations subsequently issued~ the lien of which on the Revenues
of said Water System is subject to the ~rior and superior lien on such
Revenuss of Certificates issued pursuan~ to this Ordinance, and the
City shall not issue any obligations whatsoever payable from the
Revenues of said Water System which rank equally as to lien and
source and security for payment from such Revenues with Certificates
issued pursuant to this Ordinance except in the manner and under the
conditions provided in this subsection.
No additional obligations, as in this subsection defined,
shall be created at any time, however~ unless all of the payments
into the respective funds provided for in this Ordinance on
Certificates then outstanding, and all other reserve or sinking funds,
or other payments provided for in this Ordirance shall have been made
in full, and the City shall have fuI~ complied with all the covenants,
agreements and terms of this 0rdinance~
M. REMEDIES. Any holder of Certificates or of any coupons per-
taining thereto, issued under the provisions of this Ordinance, or any
Trustee acting for such Certificateholders in the manner herinafter
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 Ordinance, and may enforce and compel
the performance of all duties required by this Ordinance, or by any
applicable statutes to be performed by the City or by any officer
thereof, including the fixing, charging and c~lle~ing of rates, fees
and charges for the services and facilities of sai~ Water System.
In the ~vent that default shall be made in the payment of the
interest on or the. principal of any of the Certificates issued pursuant
to this Ordinance as the same shall become due~ or in the making of
the payments into any reserve or sinking fund or s~y other payments
required to be made by this Ordinance, or in the event that the
City or any officer, agent or employee thereof shall fail or refuse
to comply with the provisions of this Ordinance, or shall default
in ~n¥ covenant made herein, and in the further event that any such
def&ult Shall continue fo~ a period of thirty days, any holder of
such Certificate, or any Trustee appointed to represent Certificate-
holders as hereinafter provided., shall be entitled as of right to the
appointment-of a receiver of said Water System in an appropriate
judicial proceeding in a court of competent jurisdiction, whether
or not such holders or Trustee is als~ seeking or shall have sought
to enforce ar~ other right or exercise any other remedy in connection
with Certificates issued pursuant to this Ordinance.
The receiver so appointed shall forthwith, directly or by
his agents and attorneys, enter into and upen and take possession
of said Water System, and each and every part thereof, and shall hold~
operate and maintain~ manage and control such Water System, and each
and every part thereof, and in the nsme of the City shall exercise all
the rio~hts and power of the City with respect to said Water System
as the City itself might do. Such receiver shall collect and receiv~
all Revenues, maintain and operate such Water System in the maoner
provided in this Ordinance, and comply under the jurisdiction of the
court appointing such receiver, with all of the provisions of this
Ordinance.
Whenever all that is due upon Certificates issued pursuant
to this Ordinance, and interest thereon, and under any covenants of this
Ordinance for meserve, sinking or other funds, and upon any other
obligstions and interest thereon, having acharge, lien or encumbrs~ce
upon the Revenues of said Water System~ shall have been paid and made
good, and all defaults under the provisions of said Ordinance shall
have been cured and made good, possession of said Water System shall be
surrendered to the City upon the entry of an order of the court to
that. effect. Upon any subsequent default, say holder of Certificates
issued pursuant to thisOrdinance, or any Trustee appointed for
Certificateholders as hereinafter provided, shall have the same 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 thedirection 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 t~ exerciEe by the receiver of any
function not specifically set forth herein.
Any receiver appointed as provided herein shall hold and
operate such Water System in the name of the City and for the joint
protection and benefit of the City and holders of Certificates issued
pursuant to this. Ordinance. 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 System, but the
authority of such receiver shall be l~mioed to ~he possession, oper-
ation and maintenance of such Water ~ystem for the sole purpose of the
protection of both the City and Certific~teholders, and the curing and
making good of any default under the provisions of this Ordinance, and
the title to and ownership of said Water System shall remain in the
City, and no court shall have any jurisdiction to enter any order or
decree permitting or requiring such receiver to sell, mortgage or other-
wise dispose of any assets of said Water System, except as provided
in subsection 15 (E) hereof.
The holder or holders of Certificates in an aggregate princi-
pal amount of not less thantw~nty-five per centum of $ertificates issued
under this Ordinancethen outstanding may be a duly executed certificate
in,writing appoint a trustee for holders of Certificates issued
p~rsuant to this Ordinance with authority to represent such Certificate-
holders in an~ legal proceedings for the enforcemen~ and protection
of the rights of such Certificateholders. Such certificate shall
be executed by such Certi~icateho!dersor their duly authorized
attorneys or representatives, and shall be filed inthe office of the
City Clerk.
N. ENFORCEMENT OF COLLECTIONS. That the City will diligently
enforce and collect'such fees, rates or other charges for the services
and facilities of said Water System, and take all steps, actions
and proceedings for the enforcement and collection of such fees, rates
or other charges which shall become delinquent to the full extent
permitted or authorized bY the Charter of said City, and by the laws
of the State of Florida.
l~. MODIFICATION OR ~ME~NT. No material modification or amend-
ment of this Ordinance or of any ordinance or restriction amenda~ory
hereof or supplemental hereto, may be made without the consent in writinl
of the holders of two-thirds or more in principa~ ~mount of the
Certificates then outstanding, provided, however, that no modification
or amendment shall permit 'a change in the maturity of such Certificates
or a reduction in t~e rate of interest thereon, or in the amount of
the principal ebligation or affecting the unconditional promise of the
City to pay the principal of ~nd interest on the Certificates as the
same shall come due from the Revenues of said Water System, without
the consent of the holder of such certificates.
16. SEVER~BILITY OF INVALID ~RO~ISION. If any one or more of the
covenants, agreements or provisions of this Ordinance shauld be held
contrary to any express provision of law or contrary to the policy'of
express law, t~ough not expressly prohibited, or against public policy,
or shall for any reason whatsoever be held invalid, then such covenants,
~Ereements or provisions shall be null and void and shall be deemed
separable from the remaining covenants, agreements or~ovisions, and
in no way affect the validity of all the other provisi0ms of this
Ordinance or of the Certificates or coupons issued thereunder.
17. ISSUANCE AND S~LE OF CERTIFICATES. That said $60,000
Water Revenue Certificates, dated JSne l, 1957~ originally authorized
to be issued by this Ordinance are hereby sold and~awarded to
Thomas M. Cook & ComoaDJ~ a price of ninety-five and accrued interest,
and the City Treasurer, afterthe validation of said Certificates~ is
_hereby authorized and directed to deliver said Certificates to
Thomas M. Cook and Company~ upon payment of the aforesaid purchase
price~ either all at one timer or in blocks from time to tLme as
the proceeds thereof are required for the payment of the cost of
acquisition or construction of the improvemen~ts~ additions, and
extensions to. the Water System.
18. That C. L. McCoy~ Attorney at Law~ be and he is hereby
authorized and directed to institute appropriate proceedings in the
Circuit Court of the Fifteenth Judicial Circuit of Florida~ in and
for P'alm Beach Couuty~ Florida~ for the validation of said Ce~ttf!cates~
and the proper officers of the City are hereby authorized to verify
on behalf of the City any pleadings in such proceedings.
19. That it is necessary for the immediate preservation
of the public peace~ he~l~h~ prosperity and safety of the City of
Boyn~on Beach and its ~nhabitants that the improvements, extensions
and additions to the City's Water System authorized herein be made
with the ~east possible delay~ and this Ordinance is hereby declared to
be an emergency measure and shall ts~ke effect upon its passage.
(signed)
(signed)
(signed)
F. L. Purinton
Co~issioner
B. V. ~at~ersall
Con,missioner
Clarenqe Benson
Cd,missioner