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07/01/49-1October 3, 1949 RESOLUTION PROVIDING POR THE ISSUANCE OP REFUNDING BONDS OP THE CITY OF BOYNTON BEACH, FLORIDA, FOR THE PURPOSE OF REFUNDING OUTSTAND- ING BONDED INDEBTEDNESS OF SAID CITY, AND PRO- VIDING POR THE LEVY OF TAXES TO PAY THE PRINCI- PAL AND INTEREST OF SAID REFUNDING BONDS. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BOYNTON BEACH, FLORIDA: Section 1. That this Council has ascertained and de- termined that; (A) Under date of May l, 1928 the Town of Boynton (now the City of Boynton Beach) issued obligations designated Improvement Certificates of Indebtedness in the principal amount of $58,565.37, maturing on May l, 1938 and bearing interest at 8 per centum, said interest being represented by coupons, payable annually, attached to said obligations. The certificates of indebtedness were issued in various principal amounts, each of which represented the amoun~ of an assessment levied against a lot or parcel of land described in the certificate of indebted- ness. Both principal and interest of said certificates of indebt- edness were made payable to bearer, and by the terms thereof the payment of such principal and interest was guaranteed by the Town of Boynton. By the provisions of Chapter 15088, Special Acts of 1931, creating the Town of Boynton Beach out of territor7 former- ly included within the Town of Boynton, each of said towns was required to assume and discharge 50% of all indebtedness for which the Town of Boynton was liable on April l, 1930, whether represent- ed by bonds or otherwise. The Town of Boynton continued to be liable for 60% of the amount of said improvement certificates of indebtedness which were outstanding on April 1, 1930, and of said amount for which the Town of Boynton remained liable there are now outstanding and unpaid certificates in the principal amount of $21,692.46 and interest accrued thereon to July 1, 1949 in the sum of $37,258.40, making the total amount of indebtedness past due and unpaid the sum of $~8,9~0.8~ for the payment of which sum the City of Boynton Beach is now liable as successor to the Town of Boynton. (B) The City of Boynton Beach is financially unable to pay the indebtedness above referred to without imposing undue hardship on its citizens and taxpayers, and it will be to the advantage of the City and its taxpayers, citizens and creditors to provide for the issuance of refunding bonds, bearing interest at a lower rate thant the rate which continues to accrue on said indebtedness, and postponing the time of payment of such indebt- edness, Section 2. That for the purpose of refunding the out- standing indebtedness of the City of Boynton Beach described in Section 1 hereof, including the past due interest thereon as of July 1, 1949, there shall be issued bohds of said City in the amount of $§8,9~0.85 pursuant to the provisions of Chapter 132, Florida Statutes, 1941, and the City Charter, being Chapter 24398, Special Acts of 1947. Said bonds shall be designated "Refunding Bonds, Issue of 1949", shall be dated July 1, 1949, and shall mature on July 1, 1971, but shall be redeemable at the option of the City on any interest payment date at par plus accrued interest. -2 - The Refunding Bonds shall bear interest, represented by coupons payable semi-annually on January I and July l, at the rate of one and one-half per centum (1~%) per annum from the date of the bonds to July l, 19§l; thereafter at the rate of two per centum (2%) per annum to July l, 1954; thereafter at the rate of two and one-half per centum (2~%) per annum to July l, 1956; thereafter at the rate of three per centum (3%) per annum to July l, 1961, and at the rate of four per centum (4%) per annum thereafter. The Refunding Bonds shall be numbered i to 59, inclusive, and shall be in the denomination of $1,000 except one bond which may be in the denomination of $950.85. Both principal and interest of the refunding bonds shall be payable in lawful money of the United States of America at the Chase National Bank of the City of New York, in New York City, New York. Section 3. Said Refunding Bonds shall be signed by the Nayor ar~ City Treasurer and shall have the corporate seal of the City affixed, and the interest coupons attached to the bonds shall be executed with the fac simile signature of the City Treasurer. The foEn of said bonds and the coupons and of the validation certi- ficate to be endorsed thereon shall be substantially ~s follows: - 3 - UNITED STATES OF AMERICA STATE OF FLORIDA COUNTY OF PALM BEACH CITY OF BOYNTON BEACH REFUNDING BOND, ISSUE OF 1949 NO. , $, The City of Boynton Beach, a municipal corporation in the County of Palm Beach, State of Florida, hereby acknowledges itself to be indebted and, for value received, hereby promises to pay to the bea~er the principal sum of DOLLARS on the first day of July, 1971, with the option of prior redemp- tion as hereinafter provided, and to pay interest on said sum semi-annually, on the first day of January and the first day of July in each year, at the rate of one and one-half per cent (1~%) per annum from the date hereof to July l, 1951; thereafter at the rate of two per cent (2%) per annum to July 1, 1954; thereafter at the rate of two and one-half per cent (2~%) per annum to · July 1, 1956; thereafter at the rate of three per cent (5%) per annum to July l, 1961, and at the rate of four per cent (4%) per annum thereafter. Both principal and interest hereof are payable in lawful money of th~ United States of America at the Chase National Bank of the City of New York, in New York City, New York upon pre- sentation of this bond and the interest coupons hereto attached as they severally mature. This bond is one of an issue of Refunding Bonds of like date and maturity, limited in aggregate amount to $88,9§0.$5. -4 - The City of Boynton Beach, Florida, hereby reserves the right to call and redeem all or any part of the Refunding Bonds of the issue of which this bond is one on any interest payment date at par plus accrued interest at the rate then prevailing as enforceable and collectible, and agrees that it will apply surplus moneys in the Special Reserve Fund established for said Refunding Bond issue, over and above requirements for interest payments, to the redemption of Refunding Bonds of said issue at par and accrued interest by lot when such surplus is not used for the purchase of bonds of said issue at or below the callable price of par and accrued interest and not reserved so to acquire such bonds under then published notice in the manner more particularly prescribed by the resolution authorizing the issuance of said Refunding Bonds. In the event this bond is so called for redemption, notice thereof shall be filed at the place of payment of principal and interest of said bonds at least thirty days prior to the date or redemption and shall be published once not less than thirty (30) nor more than sixty (60) days before such redemption date in a newspaper having a general circulation in the City of Boynton Beach, Florida, and once in a financial Journal published in the City of New York, New York, as provided by the resolution of the City Council of said City of Boynton Beach authorizing the issuance of the Refund- ing Bonds of the issue of which this bond is one. If this bond shall not be presented for payment on the date so fixed for redemp- tion, it shall cease to bear interest from and after said date, provided that adequate funds for its redemption shall have been deposited and set aside at the designated paying agency by said - 5 - City for such purpose. The sinking fund provided for said Refund- ing Bonds may also be used in the purchase thereof in accordance with the provisions of the resolution authorizing their issuance. The City of Boyhton Beach covenants with the holder of this bond that it will levy a direct annual tax upon all property subject to taxation for the payment of the indebtedness refunded by the Refunding Bonds of the series of which this bond is one, except only that property which was exempted from municipal tax- ation by the Constitution and laws of Florida as they existed immediately prior to November 6, 1934, wh~ h tax shall be in amounts sufficient to provide for payment of the interest upon the bonds of the Series of which this bond is one as the same shall become due, and to create a sinking fund for payment of the prin- cipal thereof at maturity; that in the annual budget and ad valorem tax levy to be made in the fiscal year 1949-1950, and in each year thereafter until all of said Refunding Bonds and the interest thereon have been paid, there shall be included a levy of a current ad valorem tax on all property subject to taxation for the payment of the indebtedness refunded by s aid Refunding Bonds in such amount as shall be sufficient for the principal and interest retirement of bonded indebtedness, based upon not more than 50% collectibility of such tax, but in no event shall such levy be less than $1,000.00 in each of said fiscal years, and that the City will create and main- tain a Special Reserve Fund in the sum of $1,500.00 and from the first moneys collected from the tax levy for said Refunding Bonds, or from other sources of revenue lawfully available for that purpose, the City will apply or set aside a sufficient sum for the payment of the in- terest on the Refunding Bonds, and deposit the balance in the Special - 6 - Reserve Fund until such fund amounts to the sum of $1,500.00. Moneys in said Special Reserve Fund shall from time to time be applied to the payment of interest due on the Refunding Bonds in anticipation of the collection of taxes levied therefor, whenever such taxes have not been collected at the time such interest becomes due. The right is hereby reserved to levy such taxes as might lawfully be imposed for the pay- ment of this bond upon any property heretofore embraced within the territorial limits of the City at the time of the incurring of the in- debtedness hereby refunded which is not now included within the existing territorial limits of the City. The City further covenants that all taxes levied for the payment of the principal and interest of this bond, including taxes upon homesteads, will be collected in cash at the same time and in the same manner as operating and governmental ad valorem taxes levied by said City, and the rights and remedies for the enforce- ment of the indebtedness refunded hereby shall appertain to this bond and the tax~s securing the same independently of any restrictions or limitations thereon enacted by the State Legislature of Florida or otherwise taking effect since the creation of the indebtedness hereby refunded. IT IS HEREBY CERTIFIED AND RECITED that this negotiable bond is one of a Series issued under the authority of and in full compliance with the General Refunding Act of 1951, same being Chap- ter 13~, Florida Statutes, 1941, and the Charter of said City, and pursuant to resolutions and proceedings duly and legally adopted and taken by the City Council of the City of Boynton Beach, Florida, and said Series of bonds, of which this bond is a part, is issued in exchange for and as a continuation, extension, merger and re- newal of a like amount of valid subsisting funded indebtedness of the said City created prior to November 6, 1934, and outstanding on the dates of the passage of said resolutions, and for the pur- pose of refunding said outstanding indebtedness; that all acts, conditions and things required to happen, exist and be performed precedent to and in the issuance of this bond have happened, exist and been performed in due time, form and manner according to law; that the total bonded indebtedness of said City, including this bond, does not exceed, and that the total indebtedness of said City at the time of the incurring of the indebtedness refunded hereby, including said indebtedness, did not then exceed any constitutional or statutory limitation thereon; and for the prompt payment of this bond, and the interest thereon, as the same become due, the full faith, credit and taxing power of said City are hereby irrevocably pledged to the same extent and with like force and effect as the same were pledged for payment of the indebtedness refunded hereby. IN WITNESS WHEREOF the City of Boynton Beach, in Palm Beach County, Florida, by its City Council has caused this bond to be signed by its Mayor and City Treasurer, and has caused the interest coupons hereto attached to be executed with the fac simile signature of its Treasurer, all as of the first day of July, 1949. Cit'y Treasurer approved as to form, language and execution Mayor gitY 'A~6rney - $ - (FORM OF COUPON FOR SEMI-ANNUAL INTEREST PAYMENTS) $ On the first day of , 19 , the City of Boynton Beach, Florida, will pay to the bearer at The Chase National Bank of the City of New York, in New York City, New York, the sum of dollars, being the then enforceable and collectible interest on its Refund- ing Bond, Issue of 1949, dated July 1, 1949, NOe , unless said bond shall have been theretofore called for redemption. ~'~ty Treasurer (FORM OF VALIDATION CERTIFICATE) Validated and confirmed by decree of the Circuit Court of the Fifteenth Judicial Circuit of Florida, in and for Palm Beach County, rendered on the day of , 1949. C~erk of 'the ~ircUit ~ourt, Palm Beach County, Florida. -9 - Section 4. That for the prompt payment of the principal of and interest on said refunding bonds issued pursuant to this resolution, the faith, credit and taxing power of the City of Boynton Beach, Florida, a~e hereby irrevocably pledged to t he same extent and with like force and effect as the same were pledged for the payment of the outstanding indebtedness refunded thereby, and the City Council hereby covenants and agrees with the holders of any and all of said refunding bonds and interest coupons issued under the provisions of this resolution that the City will make prompt payment of the same when due. Section 5. That for the purpose of adequately providing for the payment of the interest on, and for the creation of a sink- ing fund for the retirement of the principal of, all of said re- funding bonds hereby authorized to be issued, the City Council, for and on behalf of said City, hereby covenants and agrees with the holders of said refunding bonds that: (1) In the annual budget and ad valorem tax levy to be made in the fiscal year 1949-1950, and in each year thereafter until all of said refunding bonds and the interest thereon have been paid, there shall be included a levy of a current ad valorem tax on all property which is subject to taxation for the payment of the indebtedness refunded by said refunding bonds in such amount as shall be sufficient for the principal and interest retirement of bonded indebtedness based upon not more than 50% collectibil- ity of such tax, but in no event shall such levy be less than $1,000.00 in each of said fiscal years. - l0 - (2) The City shall create and maintain a Special Reserve Fttnd in the amount of $1,500.00, and from the first moneys col- lected from the tax levy for said refunding bonds, or from other sGurces of revenue lawfully available for that purpose, the City will apply or set aside a sufficient sum for the payment of the interest on the refunding bonds, and the balance shall be placed in the Special Reserve Fund until such Fund amounts to the sum of $1,500.00. Moneys in said Special Reserve Fund shall from time to time be applied to the payment of interest due on the refunding bonds in ar~icipation of the collection of taxes levied therefor whenever such taxes have not been collected at the time such in- terest becomes due. The amount used for such purpose shall be re- stored to such Special Reserve Fund from the proceeds of said taxes as collected. Section 8. That the annual taxes herein provided for the payment of the principal of and interest on the refunding bonds shall be levied and computed in the proper proportionate amounts against the extended and finally equalized valuation of all property subject to taxation for payment of the refunding bonds, excepting 0nly that property which was exempted from municipal taxation by the constitution and the laws of Florida as they existed immediately prior to November 8, 19~4, and such taxes shall be levied accordingly each ye~r fron year to year until all of the indebtedness evidenced by said refunding bonds has been liqui- dated, provided that in no event will levies be made below the prescribed amount. The taxes so levied shall be in addition to all other taxes levied by or on behalf of the City of Boynton - ll - Beach, ~nd the proceeds thereof and of all tax certificates and tax deeds issued therefor are hereby appropriated and shall be used exclusively for the purpose for which the same are levied, and so long as any of said refunding bonds and interest thereon remain outstanding or unpaid, the respective annual tax levies shall be increased when necessary to provide sufficient funds for the actual interest and sinking fund requirements of said refund- ing bonds for the year next succeeding that in which the budget is being made and prepared. Section 7. That all tax levies required to be made hereunder for the payment of the interest upon and for the pur- chase, redemption or payment of the principal of the said re- funding bonds hereby authorized to be issued, shall constitute special levies for the particular purpose for which they are imposed. Such tax levies, while constituting special levies, will be collected in cash at the same time and in the same manner as other taxes which may be levied by the City and upon collection will be immediately segregated and credited to the proper funds as hereinbefore provided. The City covenants that it will promptly set aside out of the proceeds of its tax collections, including the moneys derived from the sale or transfer of tax certificates and tax deeds, the proper proportionate amount thereof applicable to the purchase, redemption or payment of the principal and in- terest on the said refunding bonds, and all moneys so credited to such special funds will be forthwith deposited with a City De- pository and held by it in trust for the purchase, redemption or payment of the principal of and interest on the said refunding bonds, in the manner prescribed by this resolution. - 12 - (A) The City hereby covenants that, notwithstanding the provisions of any laws inconsistent with the terms of this resolution, it will not accept anything but lawful money of the United States of America in payment or satisfaction of the taxes required to be levied or pledged hereunder for the payment of the interest upon and principal of the refunding bonds authorized hereby. (B) The City hereby further covenants that, notwith- standing Section 7, Article X, of the Constitution of the State of Florida, and any legislation enacted pursuant thereto, it will levy taxes for the payment of the refunding bonds authorized here- by upon all homesteads which were subject to taxation for payment of the indebtedness refunded by said refunding bonds, to the same extent as other property may be liable to taxation therefor. (C) The City further covenants that so long as any of the refunding bonds authorized hereby may be outstanding, it will not avail itself of any legislation impairing or modifying the obligations of the City on the indebtedness refunded by said re- funding bonds or the covenants contained in said bonds and in this resolution; that said ref~nding bonds shall constitute a continuation, extension, merger and renewal of the indebtedness thereby refunded; that said refunding bonds shall have and are hereby declared to have the same security and source of payment as the indebtedness thereby refunded; that all rights and re- medies which were available for the support and enforcement of the indebtedness to be refunded hereunder shall be available for the support and enforcement of the refunding bonds hereby author- ized to be issued, and that said refunding bonds shall be of the -13- same class and have the same security and source of payment from taxes or other revenues applicable thereto, as the refunding bonds issued by the City of Boynton Beach, dated October 1, 1946, and designated Refunding Bonds, Issue of 1946. (D) That all covenants, representations, agreements and undertakings herein set out, as well as those appearing on the face of each of said refunding bonds, shall constitute a contract with the holders of the refunding bonds, which contract shall be en- forceable by suit, action or mandamus on behalf of any bondholder in any court of competent Jurisdiction, whether or not a monetary default shall then have occurred in the payment of the interest on or principal of said refLunding bonds. Section 8. (A) That all of said refunding bonds shall be callable upon any interest payment date prior to maturity at par plus accrued interest at the rate then prevailing as enforce- able and collectible. (B) That the option to call any or all of said refund- ing bonds prior to maturity sahll be exercised in the following man- ner: the refunding bonds which are to be redeemed shall be drawn by lot by the governing body of said City from all the bonds then outstanding, and notice of such redemption, specifying the bonds to be redeemed, shall be filed at the place of payment of the principal and interest thereof, at least thirty (30) days prior to such redemption date, and said notice of intention to redeem such bonds shall be published once, not more than sixty (60) nor less than thirty (30) days prior to such redemption date, in at least two publications, one of which shall be a newspaper having a general circulation in the City of Boynton Beach, Florida, and the other shall be a financial Journal published in the City of - 14 - New York, New York, and said bonds when so called for redemption shall cease to bear interest on such redemption date, provided that adequate funds for their redemption and payment shall have been deposited and set aside at the designated paying agency by said City for such purpose. Section 9. (A) If at any time there is $5,000 or more in the Refunding Bond Interest and Sinking Fund Account over and above the amount of the next annual interest requirement, the said fund shall be used by the City, after giving reasonable pub- lic notice of its intention, for the purpose of purchasing refund- ing bonds of the issue contemplated herein, which purchase shall be made in the following manner: The City shall designate a date at which time it will receive sealed tenders of bonds of the re- funding issue herein authorized, and act upon such tenders in open session. The entire available surplus for the retirement of bonds shall be used to purchase bonds offered by such tenders at the lowest prices; provided, however, that if the said City be dissatisfied with any or all tneders thus received, it shall have the option to reject any or all of same, and within sixty (60) days after such rejection it shall readvertise for additional sealed tenders in the same manner as hereinbefore provided, and shall pur- chase the bonds offered at the lowest prices upon such readvertise- ment absorbing all surplus funds available in the Refunding Bond Interest and Sinking Fund Account; provided, further, that follow- ing each respective tender date said City may privately purchase additional bonds with subsequent surplus accumulations or any other funds as long as private purchases may be made upon such basis as will show an equal or higher income yield than the high- - 15 - est yield calculated on bonds purchased responsive to tenders re- ceived at the last preceding tender date. In the event that no offerings can be obtained at or below the callable price, the said City may proceed to call bonds by lot. (B) That all of said refunding bonds purchased or re- deemed by the City sahll be cancelled immediately upon their sur- render to the City. Section 10. That it is hereby declared and intended that the said refunding bonds hereby authorized are to be issued as of July 1, 1949, for the purpose of refinancing as of that date the amount of outstanding indebtedness of said City of Boyn- ton Beach, Florida, then existing as hereinbefore described. Section 11. That Bert Winters, Esq., Attorney at Law, be and he is hereby authorized and directed to institute appro- priate proceedings in the Circuit Court of the Fifteenth Judi- cial Circuit of Florida, in and for Palm Beach County, Florida, for the validation of said refunding bond issue, and the Mayor is authorized to verify on behalf of the City of Boynton Beach any pleadings in such proceedings. Section 12. That if any clause, section, paragraph or provision of this resolution or of the refunding bonds hereby authorized be declared unenforceable by any court of final Juris- diction, it shall not affect nor invalidate any remainder thereof, and if any of the refunding bonds hereby authorized be adjudged illegal or unenforceable, the holders thereof shall be entitled to be subrogated to the rights of the holders of the indebtedness hereby provided to be refunded thereby and as such enforce their - 16 - claim for payment. Section 13. That all resolutions and parts of resolu- tions in conflict herewith are hereby rescinded. Section lA. That this resolution shall be in full force and effect immediately upon its passage. - 17 -