Ordinance No. 15-99-9v0
ORDINANCE NO. 15-99-9
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA,
PROVIDING FOR THE REFUNDING OF THE CITY'S OUTSTANDING
OBLIGATION IN THE FORM OF A PROMISSORY NOTE BY THE CITY OF
GULF BREEZE, FLORIDA LOCAL GOVERNMENT LOAN PROGRAM;
PROVIDING FOR THE ISSUANCE OF NOT EXCEEDING $1,820,000
CAPITAL IMPROVEMENT REVENUE REFUNDING BONDS, SERIES 1999,
TO FINANCE THE COST OF SUCH REFUNDING; PROVIDING FOR THE
PAYMENT OF THE BONDS FROM CERTAIN PLEDGED REVENUES;
MAKING CERTAIN COVENANTS AND AGREEMENTS IN CONNECTION
THEREWITH; AUTHORIZING THE CITY MANAGER OF THE CITY TO
PROCEED TO DEVELOP NECESSARY DOCUMENTS TO ACCOMPLISH
THE FINANCING; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF
THE CITY OF ATLANTIC BEACH, FLORIDA:
SECTION 1. AUTHORITY FOR THIS ORDINANCE. This Ordinance is enacted
pursuant to the provisions of Section 17 of the City's Charter, Chapter 166, Florida Statutes, and
other applicable provisions of law (the "Act"I.
SECTION 2. FINDINGS. It is hereby ascertained, determined and declared that:
(A) It is necessary and desirable and in the best interest of the inhabitants of the City
to refund the City's outstanding obligations under that certain Loan Agreement dated as of
January 1, 1989, between the City, SunBank, National Association and Jackson C. Tuttle, acting
on behalf of the City of Gulf Breeze, Florida, in the form of a Promissory Note dated January 4,
1989 (the "Refunded Obligation").
(B) The City is without currently available funds to pay the cost of the refunding and,
therefore, proposes to pay such costs through the issuance of not exceeding $1,820,000 Capital
Improvement Revenue Refunding Bonds, Series 1999 (the "1999 Bonds"). The City is
authorized pursuant to the provisions of the Act to undertake the refunding and issue the 1999
Bonds.
(C) The principal of, premium, if any, and interest on the Series 1999 Bonds and all
required sinking fund and other payments therefor shall be payable solely from the Public Service
Tax (formerly the Utilities Service Taxes) levied and collected by the City pursuant to Section
166.231, Florida Statutes, on every purchase of electricity, metered or bottled gas, natural, liquefied
petroleum gas or manufactured, No. 1 kerosene, No. 2 and No. 3 fuel oils (but not fuel oils of lower
grade) and local telephone service, within the corporate limits of the City. The City shall never be
required to levy ad valorem taxes on any property therein to pay the principal of and interest on the
1999 Bonds or to make any other payments with respect thereto. The 1999 Bonds shall not
constitute a lien upon any properties owned by or located within the boundaries of the City, but
shall be payable solely from the Pledged Revenues and, if necessary, the Non -Ad Valorem
Revenues (herein defined), pursuant to the provisions of this ordinance and any ordinance
amendatory hereof or any resolution supplemental hereto.
(D) It is in the best interest of the health, safety, and welfare of the City and the
inhabitants thereof that the City covenant to budget and appropriate all legally available revenues
and taxes (other than ad valorem taxes) of the City derived from any source and legally available to
pay principal of and interest on the 1999 Bonds (the "Non -Ad Valorem Revenues"), subject to any
prior liens or encumbrances on all or any specified portion thereof, whether now existing or
hereafter created, amounts sufficient to pay, if necessary, the principal of and interest on the 1999
Bonds when due.
(E) The City currently receives the Non -Ad Valorem Revenues, and is legally entitled
to covenant to budget and appropriate from such Non -Ad Valorem Revenues sufficient amounts, if
necessary, in each Fiscal Year to pay, together with the Pledged Revenues, the principal of and
interest on the 1999 Bonds, when due.
SECTION 3. AUTHORIZATION OF REFUNDING. The refunding of the Refunded
Obligation is hereby authorized.
SECTION 4. AUTHORIZATION OF 1999 BONDS. The issuance by the City of not
exceeding $1,820,000 Capital Improvement Refunding Revenue Bonds, Series 1999, for the
purpose of paying costs of the refunding is hereby authorized. The 1999 Bonds shall be dated, shall
be in a single denomination of the full principal amount thereof, as to be provided in a subsequent
resolution of the Commission, shall be in fully -registered form, payable to the purchaser thereof,
shall mature at such time and shall bear interest from their date until maturity, payable
semiannually at a rate not to exceed the maximum rate allowed by law, shall be redeemable prior to
maturity, all as to be provided in a subsequent resolution of the Commission. The 1999 Bonds shall
be secured solely by a (i) lien upon and pledge of the Pledged Revenues and (ii) the covenant of the
City to budget and appropriate Non -Ad Valorem Revenues sufficient to pay debt service on the
1999 Bonds to the extent Pledged Revenues are insufficient to pay the same. The Commission
shall, prior to the award of the 1999 Bonds, adopt a specific bond resolution (including any
resolutions supplemental to the bond resolution), supplemental to this Ordinance, setting forth the
details of the 1999 Bonds and other matters relative thereto.
SECTION 5. REPEAL OF INCONSISTENT INSTRUMENTS. All ordinance or
resolutions of the Commission or parts thereof in conflict herewith are hereby repealed to the extent
of such conflict.
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SECTION 6. EFFECTIVE DATE. This Ordinance shall become effective immediately
upon its enactment.
PASSED on First Reading f zior )�-, 1999.
PASSED on Second Reading µkuc i► g '1999.
Approved as to form, sufficiency and
correctness:
1&4
y Attorn
SEAL
ATTEST:
City Clerk
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Mayor/Presiding Officer