Ordinance No. 15-95-7v0 ORDINANCE NO. 15-95-7
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
FLORIDA, PROVIDING INITIAL AUTHORIZATION FOR THE
ISSUANCE OF NOT EXCEEDING $24,500,000 UTILITIES
SYSTEM REVENUE BONDS, SERIES 1996, OF THE CITY
TO FINANCE THE COST OF CERTAIN IMPROVEMENTS TO
THE CITY'S WATER, SEWER AND STORMWATER
UTILITIES; PROVIDING FOR THE PAYMENT OF SUCH
BONDS FROM THE NET REVENUES DERIVED FROM THE
CITY'S WATER AND SEWER UTILITIES SYSTEM AND
OTHER MONEYS; PROVIDING FOR THE MAKING OF
COVENANTS WITH RESPECT TO THE FIXING OF RATES,
FEES AND CHARGES AND OTHER MATTERS IN
CONNECTION WITH SUCH BONDS; AND PROVIDING AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION AND ON BEHALF OF THE
PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA:
SECTION 1. AUTHORITY FOR THIS RESOLUTION. This resolution is adopted
pursuant .to the provisions of Chapter 166, Part II, Florida Statutes, and other applicable
provisions of law (the "Act").
SECTION 2. FINDINGS. It is hereby ascertained, determined and declared by the City
Commission (the "Commission") of the City of Atlantic Beach, Florida (the "City") as follows,
that:
A. The City has previously authorized a plan for certain improvements to its water
and sewer utility system and its stormwater management utility system (collectively, the
"Project") and it is necessary and in the best interest of the City, and the health, safety and
welfare of its inhabitants to initiate the process of securing financing for the Project (such
improvement to be known as the "Project").
B. The City is without adequate, currently available funds to finance the cost of the
Project, and it is necessary and desirable that the City initiate the process to borrow the money
necessary to fund the Project. The City currently has outstanding a $10,000,000 loan from
Barnett Bank of Jacksonville, N.A., secured by the revenues (the "Net Revenues") of the City's
water and wastewater utility (the "System"), the proceeds of which were used and are being used
to pay the cost of other improvements to the System (the "Barnett Loan").
C. It may be advantageous to the City and its ratepayers and result in debt service
savings to the City to repay the Barnett Loan in conjunction with the financing of the Project.
D. The cost of the Project is estimated to be approximately $12,100,000 and it is
necessary and desirable that the City authorize a sufficient principal amount of revenue bonds
to ensure the availability of adequate moneys to (i) pay the cost of the Project, (ii) refinance the
Barnett Loan, (iii) fund the necessary debt service reserves, (iv) pay the premium for policies
of bond insurance and debt service reserve fund policy insurance, if applicable, (v) allow for
underwriter's and original issue discount upon sale of the Bonds, and (v) pay the costs of
issuance of the Bonds. The City has determined, on the basis of the advice of its Financial
Advisor, that the total of such amounts plus a reasonable contingency is not expected to exceed
$24,500,000.
E. The principal of premium, if any, and interest on such revenue bonds and all
required sinking fund, reserve and other payments shall be payable from and secured solely by
(i) the net revenues derived by the City from the water and sewer system, (ii) the moneys on
deposit from time to time in the funds and accounts to be created by ordinance supplemental
hereto specifying the details of such revenue bonds, and (iii) investment earnings on the moneys
on deposit in such funds and accounts (collectively the "Pledged Revenues"). The City shall
never be required to levy ad valorem taxes on any real property therein to pay the principal of
and interest on the revenue bonds or to make any other payments provided for herein and in the
ordinance providing the details of such revenue bonds. The revenue bonds shall not constitute
a lien upon the System or upon any properties owned by or located within the boundaries of the
City, other than the Pledged Revenues.
F. The Pledged Revenues are estimated to be sufficient to pay all principal of and
interest on the revenue bonds as the same become due and to make all required sinking fund,
reserve, or other payments required by the supplemental ordinance.
SECTION 3. INITIAL AUTHORIZATION OF BONDS. The City is hereby
authorized, subject to further approvals by the Commission as provided below, to issue not
exceeding $24,500,000 Utilities System Revenue Bonds, Series 1996 (the "Bonds"), for the
purposes stated above; the Bonds are to be dated, to bear interest at a rate or rates not exceeding
the maximum legal rate per annum, to be payable, to mature, to be subject to redemption and
to have such other characteristics as shall be provided by resolution of the Commission prior to
their delivery; and the Bonds are to be secured solely by a lien upon and pledge of the Pledged
Revenues.
SECTION 4. SUPPLEMENTAL ORDINANCE REQUIRED. The City shall enact an
ordinance (including any ordinances or resolutions supplemental thereto), supplemental to this
ordinance, setting forth the fiscal details and the specific covenants and provisions necessary for
the marketing, sale and issuance of the Bonds prior to any public offering of the Bonds for sale.
Such ordinance may establish special accounts and include provisions for the sole benefit of the
holders of the Bonds in order to fully protect the rights of the holders of the Bonds, including,
but not limited to: (1) the provision of a separate debt service reserve account for the Bonds
which may, at the option of the City, be funded by a municipal bond reserve account insurance
policy and (2) a covenant by the City to levy and collect rates fees and charges for the services
of the System sufficient to pay the operating expenses thereof, the costs of renewals thereto, and
debt service on the Bonds (including such coverage thereof as is necessary for marketing the
40 Bonds including reasonable reserves for such debt service). In the case of any inconsistency
3248/ATL 16. 003/0 -RUTH 2
•
between the provisions of such supplemental ordinance and this ordinance, the provisions of the
supplemental ordinance shall control.
SECTION 5. REPEAL OF INCONSISTENT PROVISIONS. All ordinances and/or
resolutions, or parts thereof in conflict with this ordinance are hereby repealed to the extent of
such conflict.
SECTION 6. EFFECTIVE DATE. This ordinance shall become effective immediately
upon its enactment.
PASSED on First Reading October 23 , 1995.
PASSED on Second Reading November 13 , 1995.
Approved as to form, sufficiency and
correctness:
ity Attorn
10 ATTEST:
t
Cit Clerk
3248/ATL 16.003/0-AUTH
3
Mayor/Presiding Officer