194Edgewater, Florida
March 3rd. , 1958
The City Council of the City of Edgewater, Florida, met
in
regular
session
on the date aforesaid, at
7:30
o'clock
P.N.,
at
City Hall
in said city.
The
meeting
was calls(
to order by the Mayor, and the roll being called there were present
George 0. Sedg ick , Mayor, presiding, and the following
named councilmen: N. W� groga>. Ci,__�shagf(gL, Robert J. Henry
Bernard Farrell ) also
Frank F. DinDery -, City Clerk, and John E. Chisholm
City attorney. n"r
Absent: None.' u u
♦ r r
Councilman Farrell introduced in typewritten
form and caused to be read in full a proposed ordinance entitledt
"AN ORDINANCE providing for the acquisition, construction
and establishment of a municipal waterworks system by the
City of Edgewater, Florida, and authorizing and providing
for the issuance, sale and delivery of $400,000 Water
Revenue Certificates of said city in connection therewith
and providing for the payment of such certificates solely
from the net revenues of such waterworks and from the
proceeds of the utilities tax being imposed by Ordinance
No. 13 adopted January 23, 1952."
There was then presented to the City Council and duly
considered the certificate of the City Clerk with respect to the
adequacy of money required for the contracts, agreements, obliga-
tions and expenditures as contemplated by said proposed ordinaneep
which certificate was ordered filed and immediately recorded.
It was moved by Councilman Farrell and seconded
by Councilman Shaeffer that all rules and requirements for
several readings or deferred consideration of said proposed ordi-
nance be suspended and that said proposed ordinance be considered
for adoption at this time. The Mayor having put the question on
the motion the roll was called and the following voted:
WJAsO
Aye Councilman Broga, Councilman Shaeffer Councilman Henry.
Councilman Farrell, Mawr Sedawick ;
Nays None.
Whereupon the Mayor declared said motion duly carried
and such rules and requirements suspended by unanimous approval.
It was thereupon moved by Councilman Farrell and
seconded by Councilman Broga that said ordinance be adopted.
Upon due consideration the Mayor having put the question on the
motion the roll was called and the following voted:
Aye: Councilman Broga Councilman Shaeffer. Councilman Henry
Councilman Farrell, Mayor Sedgwick i
Nay: None.
Whereupon the Mayor declared the motion duly carried
and said ordinance duly adopted.
r • w
On motion and vote the meeting adjourned.
v
-g-
or
es
To the City Council
Edgewater, Florida
Gentlemen:
Edgewater, Florida
March 3rd. , 1958
Referring to the proposed ordinance entitled:
"AN ORDINANCE providing for the acquisition, construction
and establishment of a municipal waterworks system by the
City of Edgewater, Florida, and authorizing and providing
for the issuance, sale and delivery of t400,000 Water
Revenue Certificates of said city in connection therewith
and providing for the payment of such certificates solely
from the net revenues of such waterworks and from the
proceeds of the utilities tax being imposed by Ordinance
No. 13 adopted January 23, 1952,"
the undersigned, as City Clerk of the City of Edgewater, Florida,
hereby certifies, prior to the adoption of said proposed ordinance,.
that within the purview of Section 46 of the Charter of said city
the money required for the contracts, agreements, obligations and
expenditures, as contemplated by said proposed ordinance, is in the
depository to the credit of the fund from which it Is to be drawn,
and not appropriated for any other purpose. In making the fore-
going certification all moneys applicable to the payment of said
contracts, agreements, obligations and expenditures anticipated to
come into the depository before the amounts called for thereby
become due from the net revenues of the municipal waterworks system
and the utilities tax, as therein referred to, and from the issuance
and sale of the Water Revenue Certificates to be authorized by ssl
proposed ordinance, are deemed in the depository to the credit of
the appropriate funds and subject to this certification.
IN WITNESS WHEREOF the undersigned has hereunto affixed
his official signature and the corporate seal of said city this
3rd day of March_, 1958.
i 1ft a.�c-GL t
Ra'0pded: e
March 3rd. , 1958
v
ORDINANCE NO. 194
AN ORDINANCE providing for the acquisition, con-
atruction and establishment of a municipal
waterworks system by the City of Edgewater,
Florida, and authorizing and providing for the
issuance, sale and delivery of POO,000 Water
Revenue Certificates of said city in connection
therewith and providing for the payment of such
certificates solely from the net revenues of such
waterworks and from the proceeds of the utilities
tax being imposed by Ordinance No. 13 adopted
January 23, 1952.
a ♦ r
WHEREAS pursuant to authority conferred upon it by
Chapter 27532 of the Laws of Florida, 1951, as amended, the City
of Edgewater, Florida, acting by and through its City Council as
the governing authority thereof, is now and at all times herein-
after stated has been empowered to acquire, establish, own and
operate a municipal waterworks system as a public utility consist-
ing generally of wells, pumps, water supply, elevated tank,
treatment and distribution facilities, in order to provide said
city and its inhabitants with an adequate supply of water for
public, domestic and industrial purposes; and
WHEREAS said city, acting by and through said City Council
has heretofore under date of December 12, 1957, negotiated a Loan
Agreement with the United States of America acting by and through
the Community Facilities Commissioner whereunder the acquisition,
construction and establishment of said municipal waterworks system
has been designated Project No. PFL-III-8-54, and has caused to
be prepared by Briley, wild h Associates, Consulting Engineers,
and filed with the City Clerk, a Report and Plan for such water-
works system, which Report and Plan has been duly approved by said
City Council, and the acquisition, establishment, ownership and
operation thereof have been duly approved and ordered by said
City Council; and
WHEREAS pursuant to the provisions of Section 167.431
of Florida Statutes and Ordinance No. 13 of said city, adopted by
its City Council on January 23, 1952, there has been and will
continue to be imposed and collected a tax on each and every pur-
chase of electricity, metered or bottled gas (natural, liquefied
petroleum gas or manufactured), and local telephone and telegraph
service in said city, which tax is herein sometimes referred to
as the 'utilities tax,' and the proceeds therefrom have not been
pledged but are available for use and application as hereinafter
provided; and
WHEREAS the estimated revenues to be derived from the
operation of said municipal waterworks and from the utilities tax
are more than ample to pay all operation and maintenance costs of
said waterworks system and to pay the interest on and principal of
the water revenue certificates as hereinafter provided; the average
annual revenues from the operation of said waterworks system
remaining after payment of all such coats of operation and mainten-
ance having been estimated at more than $36,750, and the average
annual revenues from the utilities tax having been estimated at
more than $16,700; and
WHEREAS it is the desire and intent of said city acting
by and through its City Council to adopt this ordinance so as to
thereby express its determination to acquire, construct and estab-
lish said municipal waterworks system and to provide for the
issuance of its Water Revenue Certificates to the amount of four
hundred thousand dollars ( WO,000) to pay the cost thereof and
to set forth herein the terms and conditions upon which said muni-
cipal waterworks shall be operated and maintained on a revenue
producing basis;
NOW, THEREFORE, Be It Enacted by the people of the
City of Edgewater, Florida:
Section 1. That the municipal waterworks system of the
City of Edgewater, Florida, as hereinbefore referred to, shall be
acquired, constructed and established, and that for the purpose of
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paying the cost thereof, including all expenses properly incident
thereto, there are hereby authorized to be presently issued the
Water Revenue Certificates of said city in the aggregate principal
amount of four hundred thousand dollars ($400,000). Said revenue
certificates shall be numbered consecutively 1 to 400 inclusive,
shall be of the denomination of $1000, dated as of February 1, 1958
shall bear interest at the rate of four and three-quarters per cent
per annum or such lesser rate or rates as may be fixed by supple-
mental resolution or ordinance adopted at the time of the sale and
award of the certificates, which interest shall be evidenced by
coupons attached to said certificates and shall be payable August 1
1958 and semiannually thereafter on February 1 and August 1 of each
year, and said revenue certificates shall be scheduled to become
due and payable in numerical order on February 1 of the respective
years, as follows:
Maturity Amount Maturity Amount
1961
$ 7,000
1975
$14,Ooo
1962
8,000
1976
14,000
1963
8,000
1977
15,000
1964
8,000
1978
16,000
1965
9,000
1979
16,000
1966
9,000
1980
17,000
1967
10,000
1981
18,000
1968
10,000
1982
19,000
1969
10,000
1983
20,000
1970
11,000
1984
21,000
1971
11,000
1985
22,000
1972
12,000
1986
23,000
1973
12,000
1987
233,000
1974
13,000
1988
24,000
provided, however, that said revenue certificates numbered 41 to
400, inclusive, from time to time outstanding, shall be subject to
redemption by said city prior to maturity in whole, or in part in
inverse numerical order on any interest payment date on or after
February 1, 1965, upon terms of par and accrued interest plus a
redemption premium in an amount equal to one -quarter of one per
cent of the principal amount thereof for each year or fraction
thereof to elapse between the date fixed for such redemption and
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the final maturity date of the respective certificates, but with
a maximum redemption premium of an amount equal to four per cent
of such principal amount, and in the event any of said revenue
certificates are called for redemption as aforesaid notice thereof
identifying the certificates to be redeemed will be given by mail
to the registered owner of any such certificates that may be then
registered as hereinafter provided, and by publication at least
once in a newspaper or financial journal of general circulation
published in the City of New York, New York, such mailing and
publication to be not less than thirty days prior to the redemptiei
date. Both principal and interest shall be payable in any coin or
currency which on the respective dates of payment thereof is legal
tender for the payment of debts due the United States of America
at the main office of the Bank of New Smyrna, in the City of
New Smyrna Beach, Florida, or at the option of the holders of the
respective certificates at the main office of The Chase Manhattan
Bank, in the City of New York, New York. Said revenue certificates
shall be signed by the Mayor of said city, sealed with its corpo-
rate seal and attested by the City Clerk, and the interest coupons
attached to said certificates shall be executed with the facsimile
signatures of said Mayor and said City Clerk, and said officials
by the execution of said revenue certificates shall adopt as and
for their own proper signatures their respective facsimile signa-
tures on said coupons. All of said revenue certificates together
with the interest thereon are to be issued in anticipation of the
net revenues to be derived from the operation of said municipal
waterworks system, and the proceeds of said utility tax, all as
hereinafter more specifically provided, and shall be payable soles,
and only out of the "'Water Revenue Certificates Principal and
Interest Sinking Fund," and shall be a valid claim of the holders
thereof only against said fund and the net revenues of the
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municipal waterworks system of said city and from said utilities
tax, as hereinafter pledged and provided to be pledged to said fm
Said revenue certificates shall not constitute an indebtedness or
said city within the meaning of any constitutional, statutory or
charter provision or limitation, nor shall they constitute a lien
upon any property of or in said city, and the holder or holders
of said revenue certificates shall never have the right to require
or compel the exercise of the ad valorem taxing power of said city
for the payment thereof.
Section 2. That said revenue certificates hereby
authorized and the endorsement to appear on the back thereof shall
be in substantially the following form:
(Form of Certificate)
UNITED STATES OF AMERICA
STATE OF FLORIDA
COUNTY OF VOLUSIA
CITY OF ED0E4AM
WATER REVENUE CERTIFICATE
No. $1,000
The City of Edgewater, in the County of Volusia, and
State of Florida, for value received, hereby promises to pay solely
from the special fund provided therefor, as hereinafter set forth,
to the bearer or, if this certificate be registered as to principal,
to the registered owner hereof, on the first day of February, 19
the principal sum of One Thousand Dollars ($1,000), and to pay
from said special fund interest thereon from the date hereof at
the coupon rate of per cent O per annum
an August 1, 195", and semiannually thereafter on the first days
of February and August of each year until paid, except as the
provisions hereinafter set forth with respect to redemption prior
to maturity may be and become applicable hereto, such interest
_5_
aforesaid as may accrue on and prior to the maturity date hereof
to be paid only upon the presentation and surrender of the annexed '
interest coupons as they severally become due. Both principal of
and interest on this certificate are payable in any coin or currency
which on the respective dates of payment thereof is legal tender
for the payment of debts due the United States of America at the
main office of the Bank of New Smyrna, in the City of New Smyrna
Beach, Florida, or at the option of the holder hereof at the main
office of The Chase Manhattan Bank, in the City of New York,
New York.
This certificate is one of an issue of $400,000, numbered
consecutively from 1 to 400, inclusive, which were validated and
Confirmed by decree of the Circuit Court of the Seventh Judicial
Circuit in and for Volusia County, Florida, rendered on ,
1959, and issued by said city pursuant to and in full compliance
with the provisions of the Constitution and laws of the State of
Florida, including the charter law of said city, and pursuant to
Rn ordinance duly adopted by the City Council of said city on
1958• for the purpose of paying the cost of acquir-
, eonstruoting and establishing a municipal waterworks system
and adjacent to said city.
The revenue certificates numbered 41 to 400, inclusive,
llof the issue Of which this revenue Certificate is one and which
peay be outstanding from time to time, are subject to redemption
''by said city prior to maturity in whole, or in part in inverse
numerical order on any interest payment date on or after February
195, upon terms of par and accrued interest plus a redemption
remium in an amount equal to one -quarter of one per cent of the
principal amount thereof for each year or fraction thereof to
elapse between the date fixed for such redemption and the final
ty date of the respective certificates but with a maximum
redemption premium of an amount equal to four per cent of such
principal amount, and in the event any of said revenue eertificatN
are called for redemption as aforesaid notice thereof identifying
the certificates to be redeemed will be given by mail to the
registered owner of any such certificates that may be then regis-
tered and by publication at least once in a newspaper or financial
journal of general circulation published in the City of New York,
New York, such mailing and publication to be not less than thirty
days prior to the redemption date. All such revenue certificates
thus called for redemption and for the retirement of which funds
are duly provided will cease to bear interest on such redemption
date.
This issue of revenue certificates are and will continue
to be secured by and payable solely as to both principal and
interest from a special fund created for that purpose and designated
"Water Revenue Certificates Principal and Interest Sinking Fund",
Into which there has been pledged and ordered paid a sufficient
portion of the revenues derived from the operation of said munici-
pal waterworks and the proceeds from the utilities tax being imposed
and collected by said city pursuant to the provisions of Section
1"7.431 of the Florida Statutes and Ordinance No. 13 of said city
adopted January 23, 1952, on the purchase of electricity, metered
or bottled gas (natural, liquefied petroleum gas or manufactured),
and local telephone and telegraph service in said city. It is pro-
vided in and by the ordinance authorizing the issuance of said cer-
tificates that the City Council will fix and maintain rates and
collect charges for the facilities and services afforded by
said municipal waterworks system which with the proceeds of
said utilities tax will be adequate at all times to pay the
cost of operating, maintaining and repairing said waterworks
system and leave a balance which will be paid into said special
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fund fully sufficient to pay when due the principal of and interest
on all said revenue certificates and accumulate and maintain a
reserve for that purpose. This revenue certificate, including
interest thereon, is payable solely from said special fund and
does not constitute an indebtedness of said City of Edgewater within
the meaning of any constitutional, statutory or charter provision
or limitation, and it is expressly agreed that this revenue certi-
ficate and the obligation evidenced thereby shall not constitute
a lien upon any property of or in said city, and that the holder
of this revenue certificate shall never have the right to require
or compel the exercise of the ad valorem taxing power of said city
for the payment of the principal or interest, and that said City
of Edgewater is under no obligation to pay this revenue certificate
or interest thereon except from said special fund.
This certificate with interest coupons hereunto appertain-
ing is issued upon the following terms and conditions to all of
which each taker and owner hereof and of the interest coupons
consents and agrees:
(a) Title to this certificate unless registered
as herein provided and to the annexed interest coupons
may be transferred by delivery in the same manner as a
negotiable instrument payable to bearer;
(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 possession shall have been acquired, is hereby
authorized to represent himself as the absolute owner
thereof, and is hereby granted power to transfer absolute
title thereto by delivery thereof to a bona fide pur-
chaser, that is, to anyone who shall purchase the same
for value (present or antecedent) without notice of prior
defenses or equities or claims of ownership enforceable
against his transferrer; every prior taker or owner of
this certificate, unless registered as herein provided,
and of the annexed interest coupons, waives and renounces
all of his equities or rights therein in favor of every
such subsequent bona fide purchaser, and every such
bona fide purchaser shall acquire absolute title thereto
and to all rights represented thereby;
(c) The City of Edgewater may treat the bearer of
this certificate, unless registered as herein provided,
or of the interest coupons hereunto appertaining, as
the absolute owner thereof for all purposes without
being affected by any notice to the contrary; and
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(d) For a more complete statement of the basis
upon which this revenue certificate has been issued and
a description of the sources of payment of all such
revenue certificates, and the circumstances under which
the provisions of the aforesaid ordinance may be modified
and a statement of the rights, duties and obligations of
said City of Edgewater and the rights of the holders of
the revenue certificates, reference Is made to said ordinance.
All acts, conditions and things required by the Consti-
tution and laws of Florida and the charter of said city to happen,
exist and be performed precedent to and in the issuance of this
revenue certificate, have happened, exist and have been performed
as so required.
This certificate is registrable as to principal alone
in accordance with the provisions endorsed hereon.
IN WITNESS WHEREOF said City of Edgewater has caused
this certificate to be signed by its Mayor and attested by its
City Clerk under its corporate seal, and the interest coupons
hereto attached to be executed with the facsimile signatures of
said officers, all as of the first day of February, 1959.
Attest: aT�i yor of the City of EUg-ewater
C ty erk
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(Form of Coupon)
No. i $
On the first day of , 19_, the City of
Edgewater, Florida, will pay to bearer upon surrender of this
Interest coupon at the main office of the Sank of New Smyrna in
the City of New Smyrna Beach, Florida, or at the option of the
holder hereof at the main office of The Chase Manhattan Bank in
the City of New York, New York, the sum of
Dollars ($ ), solely from the special fund referred to in
and for the semiannual interest then due on its Water Revenue
Certificate dated February 1, 1958, Numbered
Attest: i� Mayor
City Clerk
(Provisions for Registration)
This certificate may be registered as to principal
on the books of the City Clerk of the City of Edgewater,
and notation of such registration made hereon, and this
certificate may thereafter be transferred on said books
by a written assignment by the registered owner or his
attorney, duly acknowledged, or proved, and notation of
such transfer endorsed hereon. Such transfer may be to
bearer and thereby transferability by delivery shall be
restored, subject, however, to successive registrations
and transfers as before. The principal of this certi-
ficate, if registered, unless registered to bearer,
shall be payable only to the registered owner, or his
legal representative, but the coupons appertaining hereto
will remain payable to bearer, notwithstanding registra-
tion of this certificate.
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c
Section 3. That said Water Revenue Certificates shall
be registrable as to principal in accordance with the provisions
for registration hereinabove provided for endorsement upon said
certificates, and the City Clerk is hereby appointed and designated
Registrar for such purpose. No charge shall be made to any holder
of said certificates for the privilege of registration.
Section 4. That whenever the words 'waterworks system"
appear in this ordinance they shall be construed and understood
to mean the municipal waterworks system herein provided to be
acquired, constructed, established, owned and operated by said
City of Edgewater for supplying water and water service in and
adjacent to said city for public, domestic, commercial and indus-
trial purposes, together with all future improvements, extensions
and enlargements thereof. By Section 67 of the charter law of
said city its fiscal year commences on November 1 of each year.
Section 5. That the City of Edgewater hereby covenants
and agrees with each successive holder of the .revenue certificates
herein authorized and the coupons thereto attached that so long as
any of the said certificates are outstanding it will expeditiously
acquire, construct and establish said waterworks system and them
after continuously own, control, operate and maintain said water-
works system in an efficient manner and on a revenue producing
basis, and will at all times fix and maintain rates and collect
charges for the facilities and services afforded thereby and will
continue to levy and collect the utilities tax provided by Ordinance
No. 13 hereinbefore referred to so that the revenues therefrom and
the proceeds of said utilities tax will be fully sufficient at all
times:
(a) To pay the reasonable and necessary cost of
operating, maintaining and repairing saidmunicipal waterworks
system and properties appurtenant thereto;
(b) To establish and maintain a special fund which is
hereby created and designated "Water Revenue Certificates Principal
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and Interest Sinking Fund," which fund will be sufficient to
provide for the payment of the interest on the certificates hereby
authorized as such interest falls due, pay the principal thereof
at or before maturity, and to provide and maintain a reserve for
contingencies as hereinafter provided; and
(c) To provide for and permit an adequate amount to
be set aside into a special fund hereby created and designated
'Depreciation Fund", to be used and disbursed in the manner and
for the purposes hereinafter provided.
Section 6. That so long as any of the revenue certifi-
cater hereby authorized are outstanding and unpaid the &rose
revenues of said municipal waterworks system and the proceeds of
said utilities tax shall be deposited as received in a bank or
trust company which is a member of the Federal Deposit Insurance
Corporation as a fund separate and apart from all other funds or
accounts of said city, to be known and designated "Water System
Revenue Fund," and on the first secular day of each month shall
be withdrawn and set aside into separate and special funds as
follows:
(a) Operation, Maintenance and Repair Fund: There shall
be a fund known as the "Operation, Maintenance and Repair Fund,"
into which there shall be paid monthly an amount which with any
unexpended balance therein will be sufficient for the reasonable
current expenses of operating, maintaining and repairing the said
municipal waterworks system for the then current month under its
Annual Budget as hereinafter provided;
(b) Water Revenue Certificates Principal and Interest
Sinking Fund: The "Water Revenue Certificates Principal and
Interest Sinking Fund,' (hereinafter in this ordinance sometimes
referred to as the "sinking fund") shall be used solely and only
for the purpose of payint; the principal of and interest on the
Water Revenue Certificates herein authorized.
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After making the required monthly payments into the
Operation, Maintenance and Repair Fund, as provided in subparagraph
(a) of this Section 6, there shall then be withdrawn from said
Water System Revenue Fund and paid into said sinking fund in equal
monthly installments a sufficient amount so as to pay promptly
when due the interest on and the principal of all such certificat
from time to time outstanding and to also create and to thereafter
maintain a reserve in said fund for that purpose. Computations
for the amount to be withdrawn from said Water System Revenue Fund
and paid into said sinking fund shall be made as of February 1 of
each year and the amount to be so withdrawn and paid into said
fund each month shall be not less than one -sixth of the amount of
interest becoming due on the next succeeding interest payment date
plus one -twelfth of the amount of principal (if any) becoming due
on the next succeeding February 1; provided, that for the purpose of
creating and maintaining a reserve of at least $27,000 for paying
the principal of and interest on the certificates herein authorized
there shall be in like manner withdrawn and paid into said sinking
fund each month commencing not later than February 1, 1960 an
additional sum of not less than $350.00 per month and said addi-
tional sum shall be so withdrawn and paid only so long as and
whenever the amount of money herein provided for as a reserve is
leas than $27,000.
Said City of Edgewater hereby covenants and agrees that
so long as any of said revenue certificates are outstanding and
unpaid the proceeds of the continuing utilities tax imposed pur-
suant to the provisions of Ordinance No. 13 of said city adopted
January 23, 1952 on the purchase of electricity, metered or bottled
gas (natural, liquefied or petroleum gas or manufactured), and local
telephone and telegraph service in said city, shall be paid into
said Water System Revenue Fund as received and the procec.aU of said
utilities tax are hereby pledged for that purpose.
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_ L
No further payments need be made into said sinking fund
whenever and so long thereafter as the amount then held therein,
including the reserve, is equal to the entire amount that will be
payable at and before the time of retirement of all of such certi-
ficates then outstanding. No part of said sinking fund shall be
used or applied to the purchase or redemption of revenue certifi-
cates prior to maturity except such amount as may be in excess
of Interest requirements and principal payments becoming due within
twenty-four months thereafter unless all of the revenue certificates
payable from said sinking fund and at the time outstanding are to
be purchased or redeemed.
All money which is or should be by the foregoing orovi-
aions paid into the sinking fund is hereby pledged to the payment
of the interest on and principal of the certificates hereinbefore
authorized and said money shall be deposited in a solvent bank or
trust company which is a member of the Federal Deposit Insurance
Corporation as a fund separate and apart from all other municipal
funds, and each and every such deposit, to the extent it causes the
aggregate of deposits by said city in any such bank or trust company
to be in excess of $10,000, shall be continuously secured by surety
bond or bonds written by a surety company or companies of recognized
standing or by the valid pledge of direct obligations of the
United States of America, having an aggregate market value, exclu-
sive of accrued interest, at all times equal to the amount of such
excess; provided, that all or any part of the amount in the sinki
fund from time to time which is in excess of the amount of interest
and principal becoming due within the next succeeding six months
may, upon order of the City Council, be invested in direct obliga-
tions of the United States of America, and all such investments
shall be carried to the credit of the sinking fund at the current
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market value exclusive of accrued interest. All income from such
investments shall be deposited in the Water System Revenue Fund,
(c) Depreciation Fund: Within 30 days after the end of
each fiscal year, and after making V. deposits into the Operation,
Asintenance, and Repair Fund and the Sinking Fund as required by
subsection (a) and (b), above, any funds then remaining In the
Water System Revenue Fund shall be set apart and paid into a
special fund hereby created and designated the 'Depreciation Fund,
so as to thereby accumulate and maintain therein at least the sum
of $18,000, which may be used for paying the cost of necessary
unusual or extraordinary maintenance, repairs, renewals and re-
placements to said municipal waterworks system which are not in-
cluded in the Annual Budget of current expenses as hereinafter
provided for and which may also be used for the purpose of paying
the cost of constructing additions and improvements to said system
which will enhance its revenue producing capacity or provide a
higher degree of service; provided, that if at any time there is •
deficiency in the sinking fund to pay the current interest and
principal requirements which are payable therefrom as provided in
subparagraph (b) of this Section 6, then withdrawals to the amount
of such deficiency shall be made from the Depreciation Fund and
transferred to the sinking fund, All or any part of the amounts
from time to time remaining in the Depreciation Fund may upon order
of the City Council be invested in direct obligations of the
United States of America and all such investments shall be carried
to the credit of the Depreciation Fund at the current market value
thereof exclusive of accrued interest. All income from such in-
vestments shall be paid into the Water System Revenue Fund.
(d) Elccess Revenues: Subject to the provisions for the
withdrawal and application of funds in said Water System Revenue
Fund in subparagraphs (a), (b), and (0) of this Section 6, which
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withdrawals and payments are hereby declared to be cumulative
and whenever all specified and required withdrawals and payments
into said several special funds are current the city shall within
sixty days after the end of each fiscal year withdraw from said
Water System Revenue Fund the amount remaining therein, and all
such excess thus withdrawn shall be: (1) deposited in a Water
System Surplus Fund to provide for unusual expenditures for the
tensions and additions to the municipal waterworks system; or (2)
deposited in the Sinking Fund and used to redeem certificates in
advance of maturity in accordance with the redemption provisions
hereinbefore contained; or (3) deposited in the City's general fund
to be used for any lawful purpose.
If at any time hereafter the city shall impose and
collect any excise or tax payable either directly or indirectly
by the consumers of the water and service supplied by the water-
works system, which Is measured by the amounts of such service se
consumed or which is based on the amounts paid by such consumers
for water and service, the proceeds of such excise or tax shall
be regarded as one of the revenues of the system for all purposes
of this ordinance,
/•
P
Section Y. That while any of the revenue certificates
yt
issued hereunder shall be outstanding the city covenants and
agrees not to incur any other from
4qd'
obligations payable all or any
r°
part of the revenues of the municipal waterworks system nor from
the utilities tax unless the pledge of such revenues and the
security and obligation for payment thereof are subject to the
priorities and vested rights in favor of the sinking fund as a
source of payment for the revenue certificates issued hereunder.
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Section B. That said City of Edgewater hereby covenants
and agrees with each and every successive holder of the revenue
certificates issued hereunder:
(a) That the city will maintain said municipal
waterworks system in good condition, and operate the same
in an efficient and economical manner and at reasonable
cost;
(b) That so long as any of said revenue certificates
issued under the provisions of this ordinance remain out-
standing the city will maintain insurance to the extent
available, for the benefit of the holder or holders of
said revenue certificates, to the full insurable value of
all buildings and machinery and equipment therein, against
loss or damage by fire, lightning, tornado or winds, and
all other combustible property against loss or damage by
fire or lightning, and other coverages and amounts of
insurance normally carried by private companies in similar
businesses. The cost of such insurance may be paid from
said Operation and Maintenance Fund, and the proceeds of
any such insurance received by the city except covering
liability to others shall be used to repair or replace
parts of the municipal waterworks system or, if not so
used, shall be placed in the sinking fund;
(a) That so long as any of the revenue certificates
issued hereunder are outstanding the city will not mort-
gage, pledge, or otherwise encumber the municipal water-
works system, or any part thereof, or any revenues to be
derived therefrom, or from the utilities tax, except as
herein authorized; provided, the city may sell or dispose
of equipment or materials of a minor nature constituting
a part of said system and which may be found and determined
by the City Council to be no longer needed or useful and
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the proceeds thereof shall be paid into the Depreciation
Fund;
(d) That the city will keep proper books, records
and accounts separate and apart from all other records and
accounts, in which complete and correct entries shall be
made of all transactions relating to the municipal water-
works system in the manner and in such detail as is
commonly followed by privately owned utilities, and the
city will cause said books and accounts to be audited
annually by a recognized independent firm of certified
public accountants. Such annual audit shall contain,
among other things, (1) a statement showing in detail the
income and expenditures for the period covered by the
audit; (2) a balance sheet as of the end of the last pre-
ceding fiscal year; (3) an analysis by the accountant
regarding the adequacy of the acts of the city, its
officers and agents, in carrying out the requirements of
this ordinance and stating the recommendations of the
accountants for any suggested changes or improvements;
(4) a list of all the insurance policies in force showing
the amount of each policy, the risks covered, the name of
the insurer, and the expiration date of each policy; and
(5) the number of consumers of each class of service,
the number of meters in operation, and the number (if any)
of unmetered consumers. Such annual audit will be gener-
ally available to the holders of any of said revenue
certificates;
(e) That the holder or holders of ten per cent (10%)
in aggregate principal amount of the revenue certificates
issued hereunderst any time outstanding shall have the
right at all reasonable times to inspect the municipal
waterworks system and all records, accounts and data of
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the city relating thereto, and upon request the city will
furnish to such holder or holders such financial state-
ments and other information relating to the city and the
municipal waterworks system as such holder or holders
may from time to time reasonably require;
(f) That :chile the revenue certificates authorized
herein, or any of them, remain outstanding and unpaid the
rates for all services rendered by the municipal water-
works system to said city and to its citizens and to all
consumers within or without the boundaries of said city
shall be reasonable and ,gust, taking into account and
consideration the cost and value of the properties and the
cost of maintaining and operating,the same and the proper
and necessary allowances for the depreciation thereof, and
the amounts necessary for the retirement of all revenue
certificates from time to time outstanding which are pay-
able from said revenues, and the payment of interest thereon,
and there shall be charged against all users of said service,
including the city, such rates and amounts for services,
as shall be adequate to meet the requirements of this and
the preceding sections hereof, and that all revenues
received from such rates and charges and from said utili-
ties tax will be placed in the inter System Revenue Fund
and used as provided by Sections 5 and 6 hereof. The
minimum initial schedule of monthly rates and charges for
water and water service will be $2.50 for the first 2000
gallons or less, and 35 cents per 1000 gallons for all in
excess of 2000 gallons, and the initial charges for public
fire hydrants will be $50.00 per hydrant per year payable
each three months.
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That whenever necessary to comply with the orovisions
of this ordinance and to the full extent necessary there-
for the city will increase the rates and charges in said
initial schedule or in any subsequent revision thereof;
provided, that neither said initial schedule of rates
and charges nor any subsequent revision thereof shall be
reduced unless (1) the city is not then in default under
any of the covenants and provisions contained in this
ordinance and all of the prescribed payments into the
several funds as hereinbefore provided are current; and
(2) the city shall have procured the written statement by
an independent engineer of recognized ability with respect
to rates and charges for municipal waterworks systems
expressing the conclusion that the proposed reduced schedule
of rates and charges will provide revenues in each year
thereafter which with the proceeds of the utilities tax
will be at least sufficient to pay all expenses of opera-
tion, maintenance and repair of said system (exclusive of
depreciation and principal, interest and reserve require-
ments) and leave a balance equal to at least 150% of the
subsequent maximum annual interest end principal payments
for account of said revenue certificates.
No free service or service otherwise than in accord-
ance with the established rate schedule shall be furnished
and all service shall be on a meter basis except fire
hydrants, sprinklers and temporary connections.
(g) That while the revenue certificates authorized
herein, or any of them, remain outstanding and unpaid said
city will not enter into any contract or contracts nor
take any action, results of which night impair or diminish
the rights of the holders of said revenue certificates,
will not permit the operation of any competing
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service facilities in said city and will require each
municipal official or other person receiving or having
custody of funds of the waterworks system (other than
banks or trust companies) to be bonded at all times in
an amount at least equal to the total funds in his
custody at any one time.
Section 9. To the extent not now prohibited by law
the operation and maintenance of said waterworks system shall be
carried out on an annual budget basis. The city covenants and
agrees that on or before the inception of initial operation of
said waterworks system It will adopt a budget of expenses of opera-
tion, maintenance and repair of said system for the remainder of
the then current fiscal year and thereafter on or before the first
day of each fiscal year during which any of the revenue certifi-
cates are outstanding it will adopt an Annual Budget of Current
Expenses for the ensuing fiscal year, and will furnish, on request
of any holder or holders of said revenue certificates a copy of
each such budget and any amendments thereto. Current Expenses
shall include all reasonable and necessary costs of operating,
maintaining, repairing and insuring the system but shall exclude
depreciation and payments into the sinking fund. The city coven-
ants that the current expenses incurred in any year will not excedd
the reasonable and necessary amounts therefor and that it will note
expend an amount or incur any obligations for such operation,
maintenance and repair in excess of the amounts provided for cur-
rent expenses in such Annual Budget, except upon a finding by the
City Council expressed by ordinance that such expenses are neces-
sary to the continued operation and maintenance of the system.
Section 10. That the city shall not be obligated to
levy any ad valorem taxes or to take or divert moneys from any
general corporate funds of the city for the payment of the principal
_p0_
of or interest on the revenue certificates issued hereunder, nor
shall the credit or ad valorem taxing power of said city be deemed
pledged to such payment; provided, that if and to whatever extent
said city voluntarily avails of and receives the services and
facilities of said municipal waterworks system it shall pay for
same and the amounts so paid shall be included in the amount of
revenues.
Section 11. That the revenue certificates herein author.
ized shall be sold at public sale and delivered at such time or
from time to time and upon such terms as may be determined by the
City Council to be for the best interests of the city. If at such
public sale any or all of said revenue certificates are awarded to
the government as contemplated by the Loan Agreement dated December
12, 1957, then it is agreed that the City of Edgewater will be
bound by the terms and provisions of said Loan Agreement whether or
not said terms and provisions are herein set out. The Mayor and
City Clerk are hereby authorized to receive and receipt for the
proceeds, which proceeds, exclusive of accrued interest and the
amount hereinafter provided to represent interest during the period
of acquisition and construction, shall be set apart in a special
fund, to be known as the 'City of Edgewater Water System Construed
Fund,' to be used and disbursed solely and only for payment of the
cost of the waterworks system together with any expenses incident
thereto and including costa, expenses and charges incurred in
connection with the authorization, issuance, validation and sale of
the revenue certificates hereby authorized or for the repayment of
outstanding loans or advances of funds made for the purpose of pro-
viding interim construction financing pending and in anticipation
of the issuance and delivery of the Water System Revenue Certificates.
Moneys in the Construction Fund shall be expended only for such
purposes as shall have been previously agreed upon by the City and
the original purchasers of the Bonds. Pending expenditure for such
purposes, the money in said construction fund shall be deposited in,
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1
a bank or trust company which is a member of the Federal Deposit
Insurance Corporation as trust funds and shall be subject to a 1140
and charge in Favor of the holder or holders of the revenue oertifl.
sates issued pursuant to the ordinance. The sum of $19,000, repre«
renting interest during acquisition and construction, and a sum
equal to the interest accrued on the certificates to the date of
purchase and received as part of the purchase price, shall be prompt-
ly deposited into the Sinking Fund. Any funds remaining in the
Construction Fund after the payment of all costs of acquisition and
construction shall be transferred to the Sinking Fund and used to
redeem bonds in advance of maturity on the next interest payment
date as hereinbefore provided. Moneys in the construction fund in
excess of $10,000 shall be secured and may be invested in the same
manner as provided in section 6 (b) for sinking fund moneys.
Section 12. Each of the following events is hereby de-
clared to be an "event of default," that is, if:
(a) Payment of the principal of any of the revenue certifi-
cates is not made on the date therein specified for payment
thereof, or payment of any installment of interest is not
made on the date specified in the appurtenant coupons for
such payment; or
(b) Default shall be made in the due and punctual observance
or performance of any of the covenants, conditions and agree-
ments on the part of the city, in the revenue certificates
or in this ordinance, or in any pertinent law contained, and
such default shall continue for a period of thirty days.
Section 13. That upon the happening of any event of
default, as defined in Section 12 hereof, the holder or holders
of at least ten per cent in principal amount of the revenue certi-
ficates then outstanding, including a trustee or trustees for such
holders, shall, in addition to all other remedies and rights of
holders of any of the revenue certificates, have the right and
power for the equal benefit and protection of all holders of said
revenue certificates similarly situated, by suit, action or
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procea go, at law or in equity, enforce and ec 1 performance by
the City of Edgewater and its City Council and any of its officers,
agents and employees, to perform and carry out its and their duties
and obligations under this ordinance or the law pursuant to which
said revenue certificates have been issued, or the covenants and
agreements on behalf of said city with said holders. Nothing in
this section shall be construed to authorize any action by or on
behalf of such holders which is contrary to any presently existing
law, nor to require said city to perform any act or do anything
which shall require the expenditure in any manner or for any purpoa
of any funds by said city other than revenues received or receiv-
able from said municipal waterworks system or said utilities tax.
Section 14. That the provisions of this ordinance shall
constitute a contract between said City of Edgewater and the holder.
or holders of the revenue certificates herein authorized to be is-
sued, and after the issuance of any of said revenue certificates no
change or alteration of any kind in the provisions of this ordinance
may be made until all of the certificates have been paid in full as
to both principal and interest; provided that modifications, altera-
tions and amendments of this ordinance and of the rights and obliga-
tions of the city and of the holders of revenue certificates issued
and outstanding hereunder may be made as in this section provided.
In the event it shall appear desirable and to the advantage
of both the city and the holders of the revenue certificates the city
may propose modifications, alterations and amendments of this ordi
nance in the following manner: The City Council shall adopt an o
nance modifying, altering or amending this ordinance, but providing
therein that said ordinance shall not become effective unless and
til it has had the approval of the holders of the revenue certifica es
as hereinafter set out. Immediately upon adoption of said ordinance
the City Council shall set a time and place for and call a meeting of
the holders of the revenue certificates in the City of Edgewater,
Florida. Notice of the time and place of the meeting and 1n general
terms the matters to be submitted thereat shall be given to the
holders of the revenue certificates in the following manner:
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(a) Not less than fifteen days prior to the .,te set for the
meeting a copy of the notice shall be mailed to each of the
holders of revenue certificates registered as to principal at
the address appearing on the registration books and also to
the original purchaser or purchasers of the revenue certificate /
(b) Notice of such meeting shall also be published in at least
two issues of (1) a financial journal published in the City of
New York, New York; (2) a newspaper of general circulation pub`
lished in the City of Jacksonville, Florida; and (3) a news-
paper of general circulation in the City of Edgewater; the fire
of each such two publications to be made not less than fifteen
days prior to the date set for the meeting and the second of
such publications to be made not less than seven days nor more
than ten days prior to the date set for such meeting.
At such meeting there shall be submitted to the holders o
the revenue certificates for their approval the ordinance theretofore
adopted proposing the modification, alteration or amendment.
All holders of the revenue certificates for account of the
municipal waterworks system outstanding at the time of such meeting
and secured by the sinking fund hereinbefore created shall be en-
titled to vote thereat and attendance at such meeting 'may be in per-
son or by proxy. Each person seeking to attend or vote at any such
meeting must, if required, produce such proof of ownership of revenue
certificates or of personal identity as shall be satisfactory to the
Inspectors of votes. Every proxy shall be signed by the holder of
revenue certificates or by his duly authorized attorney and shall be
witnessed, and its genuineness, if questioned, shall be established
to the satisfaction of the inspectors of votes. The holders of reve-
nue certificates and the holders of proxies present shall, by a ma-
jority vote, irrespective of the amount of revenue certificates
represented by them, select two persons from those present to act as
inspectors of votes, who shall count all votes cast at such meeting
and who shall make and file with the secretary of the meeting their
verified written report in duplicate of all such votes so cast at
said meeting.
The holders (or persons entitled to vote the same) of not
less than seventy-five per cent (75%) in principal amount of the
revenue certificates entitled to be voted at any such meeting must be
present at such meeting in person or by proxy in order to constitu
a quorum for the transaction of business, less than a quorum, how-
ever, having power to adjourn.
_24
Any such modifications, alterations or amendments of
this ordinance, or of any rights and obligations of the city, or
of the holders of the revenue certificates in any particular, may
be approved at such meeting or at a due adjournment thereof and
held in accordance with the provisions of this section, but only
by a resolution duly adopted by the affirmative vote, in person or
by proxy, of the holders (or persons entitled to vote the same)
of sixty per cent or more in aggregate principal amount of the
revenue certificates entitled to be represented at such meeting;
provided, however, that no such modifications, alterations or amen(
meets shall be made which will (a) permit an extension of the tiny
of payment at maturity of the principal of or payment of the
Interest on any revenue certificate, or a reduction in the amount
of principal or the rate of interest thereon without written con-
sent of the holder thereof, or (b) reduce the percentage of holder)
of revenue certificates required by the provisions of this section
for the taking of any action under this section.
A record of the proceedings of each such meeting preparm
and certified by the secretary of the meeting and having attached
thereto an original counterpart of the report of the inspectors of
votes and affidavits of mailing and publication of the notice of
the meeting shall be filed with the City Clerk, and thereupon the
proposed modifications, alterations and amendments, as aforesaid,
shall become effective, but otherwise shall be null and void.
Section 15. That John E. Chisholm , as attorney for
the city, is hereby authorized and directed to take appropriate
proceedings in the Circuit Court of the Seventh Judicial Circuit
of Florida in and for Volusia County, for the validation of said
revenue certificates, and the Mayor and City Clerk are authorized
to sign any pleadings and offer testimony in such proceedings for
and in behalf of the city.
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Section 16. That if any section, paragraph, clause or
provision of this ordinance shall be held to be invalid or unen-
forceable for any reason the invalidity or unenforeeability of such
section, paragraph, clause or provision, shall not affect any of
the remaining provisions of this ordinance. All other proceedings
heretofore taken with respect to the issuance of said revenue
certificates, to the extent same are in conflict with this ordinance,
are hereby repealed, and all authorizations or proceedings here-
tofore taken for the issuance of revenue certificates or other
obligations payable from the revenuesof the municipal waterworks
system or said utilities tax which have not heretofore been issued
and delivered, are hereby to the extent of such authorization or
Issuance thereof revoked and rescinded.
Section 17. That for the reasons herein set forth it
is hereby declared that this ordinance shall be in full force and
effect immediately upon its adoption, and it is so ordered.
Adopted the 3rd- day of March 1958, by the
City Council of the City of Edgewater, Florida.
ree cer o ouno
Approved: March 3rd, , 1958
SQL CO f scan
t � Or
Approved as to form and correctness,
_Ma • , 1959
y orney
ReoOrdedt March ,�rd. 1958
MJA:O (,2L �� _ k-
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p�
f
STATE OF FLORIDA
COUNTY OF VOLUSIA 3S
1, Frank F. Dippery , City Clerk of the
i
City of Edgewater, Florida, do hereby certify that the foregoing
constitutes a true, correct and complete transcript of the official
record of proceedings of the City Council of said city and of an
ordinance duly adopted on March 3rd, , 1958, relating to and
providing for the issuance of $400,o00 dater Revenue Certificates
to be dated February 1, 1958.
WITNESS my official signature and the official seal of
said city this 3rd day of March , 1958,
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