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91-O-1auax9Y CITY OF EDGEWATER, FLORIDA ASSESSMENT ORDINANCE ADOPTED March 11, , 1991 02-02-05A08+51 FILE TABLE OF CONTENTS Page ARTICLE I INTRODUCTION SECTION 1.01. DEFINITIONS . . . . . . . . . . . . . . . 1 SECTION 1.02. FINDINGS . . . . . . . . . . . . . . . . 6 ARTICLE II IMPROVEMENT A SECTION 2.01. FLORIDA SHORES IMPROVEMENT AREA . . . . . 8 SECTION 2.02. ADDITIONAL IMPROVEMENT AREAS . . . . 8 SECTION 2.03. CHANGES IN IMPROVEMENT AREA BOUNDARIES 8 ARTICLE III POWERS AND DUTIES SECTION 3.01. PROJECTS . . . . . . . . . . 9 SECTION 3.02. ASSESSMENTS AND BONDS . . . . . . . . . . 10 ARTICLE IV ASSESSMENTS SECTION 4.01. GENERAL AUTHORITY . . . . . . . . . . . . 11 SECTION 4.02. INITIAL PROCEEDINGS . . . . . . . . . 11 SECTION 4.03. PLANS AND SPECIFICATIONS . . . . . . . . 12 SECTION 4.04. ASSESSMENT ROLL . . . . . . . . . . . 13 SECTION 4.05. NOTICE BY PUBLICATION . . . . . . . . . . 14 SECTION 4.06. NOTICE BY MAIL . . . . . . . 15 SECTION 4.07. ADOPTION OF FINAL ASSESSMENT RESOLUTION 16 SECTION 4.08. EFFECT OF FINAL ASSESSMENT RESOLUTION . 17 SECTION 4.09. PAYMENT OF ASSESSMENTS . . . . . . . . . 18 SECTION 4.10. LIEN OF ASSESSMENTS . . . . . . . . . . . 19 SECTION 4.11. ADDITIONAL PAYMENTS . . . . . . . . . 20 SECTION 4.12. REVISIONS TO ASSESSMENTS . . . . . . . . 20 -i- SECTION 4.13. PROCEDURAL IRREGULARITIES . . . . . . . . 22 SECTION 4.14. APPORTIONMENT OF ASSESSMENTS . . . . . . 23 SECTION 4.15. CORRECTION OF ERRORS AND OMISSIONS . . . 23 SECTION 4.16. LIMITATION ON ASSESSMENTS . . . . . . . . 24 ARTICLE V COLLECTION OF ASSESSMENTS SECTION 5.01. RESPONSIBILITY FOR ENFORCEMENT . . . . . 26 SECTION 5.02. COLLECTION BY FORECLOSURE . . . . . . . . 26 SECTION 5.03. JOINDER OF ACTIONS . . . . . . . . . . . 27 SECTION 5.04. USE OF ALTERNATIVE COLLECTION METHOD . . 28 SECTION 5.05. COLLECTION BY TAX COLLECTOR . . . . . . . 28 ARTICLE VI ISSUANCE OF BONDS SECTION 6.01. GENERAL AUTHORITY . . . . . . . . . . . . 30 SECTION 6.02. TERMS OF THE BONDS . . . . . . . . . . . 30 SECTION 6.03. VARIABLE RATE BONDS . . . . . . . . . . . 31 SECTION 6.04. TEMPORARY BONDS . . . . . . . . . 32 SECTION 6.05. BOND ANTICIPATION NOTES . . . . . . . . . 33 SECTION 6.06. NEGOTIABLE INSTRUMENTS . . . . . . . . 33 SECTION 6.07. TAXING POWER NOT PLEDGED . . . . . . . . 33 SECTION 6.08. SECURITY FOR BONDS . . . . . . . . . . . 34 SECTION 6.09. REMEDIES OF BONDHOLDERS . . . . . . . . . 34 SECTION 6.10. NO REFERENDUM REQUIRED . . . . . . . . . 35 SECTION 6.11. REFUNDING BONDS . . . . . . . . . . . . . 35 ARTICLE VII GENERAL PROVISIONS SECTION 7.01. SEVERABILITY . . . . . . . . . . . 36 SECTION 7.02. ALTERNATIVE METHOD . . . . . . . . . . . 36 SECTION 7.03. CODIFICATION . . . . . . . . . . . . . 36 SECTION 7.04. EFFECTIVE DATE . . . . . . . . . . . . . 37 ORDINANCE NO. 91-Q/ AN ORDINANCE RELATING TO THE FLORIDA SHORES AREA OF THE CITY OF EDGEWATER, FLORIDA; RATI- FYING AND AFFIRMING THE CREATION OF AN IM- PROVEMENT AREA WITHIN THE CITY; AUTHORIZING THE ACQUISITION AND CONSTRUCTION OF CERTAIN CAPITAL IMPROVEMENTS WITHIN SUCH IMPROVEMENT AREA; AUTHORIZING THE LEVY AND COLLECTION OF ASSESSMENTS FOR THE PURPOSE OF ASSESSING PROPERTIES WITHIN THE IMPROVEMENT AREA FOR THE ACQUISITION AND CONSTRUCTION OF CAPITAL IM- PROVEMENTS WITHIN THE IMPROVEMENT AREA; AUTHORIZING THE ISSUANCE OF BONDS OR OTHER EVIDENCE OF INDEBTEDNESS AT AN INTEREST RATE NOT TO EXCEED THE MAXIMUM INTEREST RATE ALLOWED BY LAW, SECURED BY THE ASSESSMENTS TO PROVIDE FUNDS FOR CAPITAL IMPROVEMENTS WITHIN THE IMPROVEMENT AREA; ESTABLISHING THE INTER- EST RATE FOR ASSESSMENTS; SETTING FORTH THE PROCEDURES FOR LEVYING ASSESSMENTS; PROVIDING FOR COLLECTION OF ASSESSMENTS; PROVIDING THAT ASSESSMENTS MAY BE PREPAID UNDER CERTAIN CONDITIONS; SUPERSEDING CERTAIN ORDINANCES AND RESOLUTIONS RELATING TO SUCH IMPROVEMENT AREAS; AND PROVIDING AN EFFECTIVE DATE. BE IT ENACTED BY THE PEOPLE OF THE CITY OF EDGEWATER, FLORIDA: ARTICLE I INTRODUCTION SECTION 1.01. DEFINITIONS. As used in this Ordinance, the following words and terms shall have the following meanings, unless the context clearly otherwise requires: "Assessment" means a non -ad valorem assessment lawfully imposed by the City for the payment of Costs in accordance with the terms of this Ordinance against properties specially benefitted by the Project. "Assessment Coordinator" means the person designated by the Council to be responsible for coordinating Assessments within the Benefit Unit or such person's designee. "Assessment Roll" means a non -ad valorem assessment roll relating to an Assessment, approved by a Final Assessment Resolu- tion as required by Section 4.07 hereof. "Bonds" means the bonds, loan agreements, notes, DER revolving fund loan, or other evidence of indebtedness issued by the City pursuant to Article VI hereof, payable from the Pledged Revenues and such other funds, if any, that the Council may pledge to budget and appropriate in any fiscal year pursuant to Section 6.01 hereof. "City" means the City of Edgewater, Florida. "Clerk" means the City Clerk of the City, or any Deputy Clerk. "Cost" means, as applied to the Project, (A) the cost of physical construction, reconstruction or completion, (B) the costs of acquisition or purchase, (C) the cost of all labor, materials, machinery and equipment, (D) the cost of all lands and interest therein, property rights, easements and franchises of any nature whatsoever, (E) the cost of any indemnity or surety bonds and premiums for insurance during construction, (F) interest prior to and during construction, and for such period of time after comple- tion of the construction or acquisition of the Project as the Council deems appropriate, and for such period of time after the :2!C a issuance of the Bonds and Notes as may be necessary to collect the initial annual installment of Assessments, (G) amounts necessary to pay redemption premiums or other costs associated with the early retirement of Bonds and Notes related to the Project, (H) the creation of reserve or debt service funds, (I) costs and expenses related to the issuance of Bonds and Notes related to the Project, all financing charges and any expenses related to any liquidity facility or credit facility, including interest on Bonds and Notes held by the issuer of such liquidity facility or credit facility, (J) the cost of construction plans and specifications, surveys and estimates of costs and of revenues, (K) the cost of engineering, financial, legal and other consultant services associated with the Project, (L) the cost of engineering, financial, legal and other consultant services and any other cost associated with the struc- ture, implementation and collection of Assessments, including any service charges of the Clerk, Tax Collector or Property Appraiser and amounts necessary to off -set discounts received for early payment of Assessments pursuant to applicable law, and (M) all other costs and expenses properly attributable to such acquisition or construction, and such other expenses as may be necessary or incidental to any financing authorized by this Ordinance, including a reasonable contingency amount; and including reimbursement of the City or any other person, firm or corporation for any moneys -3- advanced for any costs incurred by the City or such person, firm or corporation in connection with any of the foregoing items of cost. "Council" means the City Council of the City of Edgewater, Florida. "County" means Volusia County, Florida. "Final Assessment Resolution" means the resolution described in Section 4.07 hereof which shall confirm or deny the Initial Assessment Resolution and which shall be the final proceeding for the imposition of an Assessment. "Improvement Area" means the area known as Florida Shores as shown on the assessment plat attached hereto as Exhibit "A" and ratified and affirmed by Article II hereof, and any improvement area subsequently created by ordinance of the City and brought within the scope of this ordinance pursuant to Section 2.02 hereof. "Initial Assessment Resolution" means the resolution described in Section 4.02 hereof which shall be the initial proceeding for the imposition of Assessments. "Notes" means notes or other evidence of indebtedness issued in anticipation of Bonds as permitted by Sections 3.02 and 6.05 hereof. "Pledged Revenues" means (A) the proceeds of the Bonds, including investment earnings, (B) proceeds of the Assessments, as -4- specified by the resolution authorizing the Bonds, and (C) any other non -ad valorem revenues or other legally available moneys specifically pledged by the City under the resolution authorizing the Bonds. "Project" means the construction of a wastewater collection system including any necessary road restoration and resurfacing, a portion of an advanced wastewater treatment plant and wastewater reuse distribution facilities located within the Improvement Area or directly serving the Improvement Area. "Property Appraiser" means the Property Appraiser of the County. "Tax Collector" means the Tax Collector of the County. "Tax Roll" means the real property ad valorem tax assessment roll maintained by the Property Appraiser for the purpose of the levy and collection of ad valorem taxes. "True Interest Coat (TIC)" means the Rate necessary to discount the amounts payable on the Respective principal and interest maturity dates to the purchase price received for bonds. The terms "herein," "hereunder," "hereby," "hereto," "hereof," and any similar terms, shall refer to this Ordinance; the term "heretofore" shall mean before the date of adoption of this Ordinance; and the term "hereafter" shall mean after the date of adoption of this Ordinance. -5- Words importing the masculine gender include every other gender. Words importing the singular number include the plural number, and vice versa. SECTION 1.02. FINDINGS. It is hereby ascertained, determined and declared that: (A) Pursuant to Article VIII, Section 2(B) of the Florida Constitution, and Sections 166.021, 166.041, and 166.042, Florida Statutes, and Sections 197.3631 and 197.3632 Florida Statutes (1990), the Council has all powers of local self-government to conduct municipal government, perform municipal functions and render municipal services and may exercise any power for municipal purposes, except when expressly prohibited by law. Such power may be exercised by the enactment of City ordinances and resolutions. (B) Sections 7 and 43 of the Charter of City provides specific authorization to construct public improvements and assess all or any portion of the costs thereof against the property abutting such improvements. Improvements may include sewers, drains, sewage disposal plants, streets and other essential facilities and improvements. (C) The purpose of this Ordinance is to provide procedures and standards for the imposition of Assessments and to authorize -6- the issuance of Bonds secured by the Assessments to finance the Cost of the Project. -7- ARTICLE II IMPROVEMENT AREA SECTION 2.01. FLORIDA SHORES IMPROVEMENT AREA. The creation of the Florida Shores Improvement Area as a special assessment district of the City is hereby ratified and affirmed to include the boundaries set forth and described in Exhibit "A," attached hereto and incorporated herein by reference. SECTION 2.02. ADDITIONAL IMPROVEMENT AREAS. Additional special assessment districts may be brought within the scope of this Ordinance by specifically referencing and incorporating the terms of this Ordinance in the ordinance creating such additional special assessment districts. SECTION 2.03. CHANGES IN IMPROVEMENT AREA BOUNDARIES. Nothing in this Ordinance shall be construed to prohibit the adoption of a future ordinance changing the boundaries of any Improvement Area. The expansion or contraction of any Improvement Area shall not invalidate any Assessment properly imposed here- under; provided however, that the Council shall comply with the procedures set forth herein prior to imposing any Assessment against property not previously subject thereto. -8- ARTICLE III POWERS AND DUTIES SECTION 3.01. PROJECTS. The Council shall have the following authority and powers within the Florida Shores Improvement Area with respect to the acquisition and construction of the Project and within any additional Improvement Area with respect to this or any future projects: (A) to acquire, improve and construct Projects; (B) to acquire in the name of the City, either by purchase or the exercise of the right of eminent domain by the City, such lands and rights and interests and to acquire such personal property as may be deemed necessary in connection with the acquisi- tion and construction of the Projects; (C) to make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this ordinance, and to employ such consulting engineers, attorneys, accountants, construction and financial experts, superintendents, managers and other employees, contractors and agents as may, in the judgment of the Council, be deemed necessary or convenient and to fix their compensation; (D) to pay out of any funds that may be available for that purpose such portion of the Costs associated with any Project as it may deem proper; and (E) to exercise any and all of the powers of the City not enumerated above necessary or incidental for the purpose of providing the services, improvements and benefits described herein. SECTION 3.02. ASSESSMENTS AND BONDS. The Council shall have the following authority and powers within the Improvement Areas with respect to financing the Costs of the Projects: (A) to impose and collect Assessments in the manner provided herein; (B) to authorize and issue Bonds payable from Pledged Revenues and such other funds, if any, that the Council may covenant to budget and appropriate pursuant to Section 6.01 hereof to finance the Cost of the Projects in the manner provided in this Ordinance; (C) to authorize and issue Notes to finance the Cost of the Project payable from the moneys described in Section 6.05 hereof; and (D) to exercise any and all of the powers of the City not enumerated above necessary or incidental for the purpose of providing the services, improvements and benefits described herein. =11M ARTICLE IV ASSESSMENTS SECTION 4.01. GENERAL AUTHORITY. The Council may provide for the Cost of the Project or any subsequent Projects through imposition, in the Improvement Area in which such Projects are located, of Assessments upon specially benefitted property within the Improvement Area at a rate of assessment based on the special benefit accruing to such property from such Project or Projects. Assessments shall be assessed in conformity with the procedures set forth in this Article IV. The computation of Assessments may be made on the basis of a general methodology designed to provide the maximum achievable equity among properties within each Improvement Area, which methodology shall be applied uniformly against all similar properties except where equalization is required to achieve equity. Nothing contained in this Ordinance shall be construed to require the imposition of Assessments against property in public ownership. SECTION 4.02. INITIAL PROCEEDINGS. The initial proceeding for imposition of an Assessment shall be the passage by the Council of an Initial Assessment Resolution ordering the acquisition, construction or reconstruction of assessable improvements con- stituting an individual Project or several Projects, indicating in general, the location (the location may be established by reference 001= to boundaries or a map or by reference to the Improvement Area) and description of such improvements, which shall be sufficient to enable the Assessment Coordinator to prepare the preliminary plans and specifications of such improvements as described in Section 4.03 hereof. The Initial Assessment Resolution may also state the portion, if any, of the Project to be paid by the City and shall state the estimated Costs of the Project, if available, and the method of assessment which may be by frontage, acreage, square footage, parcel, equivalent residential units (ERUs)or any other combination thereof or any other method deemed equitable by the Council. The improvements constituting the Project or Projects need not be contiguous and may be in more than one locality or street. The Initial Assessment Resolution ordering any such improvement may give any short and convenient designation to each improvement ordered thereby. Notice of the council's intent to impose the Assessments shall be recorded in the Official Records Book in the office of the Clerk. Such notice shall provide in general the locations of the property which are assessed and direct interested parties to the Initial Assessment Resolution. SECTION 4.03. PLANS AND SPECIFICATIONS. For any Project that has not yet been constructed, the Assessment Coordinator shall, as soon as possible after the passage of the Initial Assessment Resolution, prepare or cause preparation of, preliminary plans, -12- specifications and Cost estimates for the improvements constituting the Project. The plans and specifications need only be in suffi- cient form to enable the Assessment Coordinator to estimate or cause estimation of the Costs of the Project and prepare the Assessment Roll. The Assessment Coordinator shall not be required to prepare preliminary plans and specifications for improvements previously constructed, but shall in lieu thereof provide a general description of the nature and location of such improvements. SECTION 4.04. ASSESSNENT ROLL. The Assessment Coordinator shall also prepare, or cause preparation of, the Assessment Roll, which shall contain the following: (A) A summary description of lots and parcels of land or land within the Improvement Area (conforming to the description con- tained on the Tax Roll) which will be specially benefitted by such assessable improvements constituting the Project or Projects and the amount of such benefits to each such lot or parcel of land. (B) The name of the owner of record of each lot or parcel as shown on the Tax Roll. (C) The total estimated Cost of the improvements to be assessed against each specially benefited lot or parcel. Such plans, specifications, Cost estimates and the Assessment Roll shall be provided to the Clerk and retained by the Assessment Coordinator and shall be open to public inspection. The foregoing -13- shall not be construed to require that the Assessment Roll be in printed form if the amount of the Assessment for each parcel of property can be determined by use of a computer terminal available at each location. SECTION 4.05. NOTICE BY PUBLICATION. The Assessment Coor- dinator, upon the filing of such plans, specifications, Cost estimates and Assessment Roll, shall publish twice at least five days apart in a newspaper of general circulation, published and circulating in the City, a notice stating that at a meeting of the Council on a certain day and hour, not less than 10 calendar days prior to the last publication, which meeting shall be a regular, adjourned or special meeting, the Council will hear objections of all interested persons to the Final Assessment Resolution or any part thereof including the aforementioned plans, specifications, Cost estimates and the Assessment Roll. If the Assessments are to be collected on the same bill as ad valorem taxes, the published notice shall conform to the requirements set forth in Sections 197.3632 and 197.3635, Florida Statutes, or any successor statutes authorizing the collection of non -ad valorem assessments on the same bill as ad valorem taxes. Such notice shall include (A) a geographic depiction of the property subject to the Assessment, (B) a brief and general description of the applicable Project with the location thereof (location may be established by reference to -14- boundaries or a map or by reference to the Improvement Area), (C) the procedure for objecting provided in Section 4.06 hereof, and (D) a statement that plans, specifications, Cost estimates and the Assessment Roll, which shall include the method or methods of assessment, are available for inspection at the offices of the Clerk and the Assessment Coordinator and all interested persons may ascertain the amount to be assessed against a lot or parcel of property at the offices of the Clerk and the Assessment Coor- dinator. SECTION 4.06. NOTICE BY MAIL. In addition to the published notice required by Section 4.05, the Assessment Coordinator shall provide notice by first class mail to each property owner proposed to be assessed. If the Assessments are to be collected on the same bill as ad valorem taxes, the mailed notice shall conform to the requirements set forth in Sections 197.3632 and 197.3635, Florida Statutes, or any successor statutes authorizing the collection of non -ad valorem assessments on the same bill as ad valorem taxes. Notice shall be mailed not less than 10 calendar days prior to the hearing to each property owner at such address as is shown on the Tax Roll as of the thirtieth calendar day prior to mailing such notice. Notice shall be deemed mailed upon delivery thereof to the possession of the U.S. Postal Service duly posted. The Assessment Coordinator may provide proof of such notice by affidavit. -15- SECTION 4.07. ADOPTION OF FINAL ASSESSMENT RESOLUTION. At the time named in such notice, or to which an adjournment or continuance may be taken by the Council, the Council shall receive any written or oral objections of interested persons and may then, or at any subsequent meeting of the Council to which an adjournment or continuance may be taken by this Council, act upon the Final Assessment Resolution which shall (A) approve the aforementioned plans, specifications and Cost estimates, with such amendments as it deems just and right; (B) repeal or confirm the Initial Assess- ment Resolution with such amendments, if any, as may be deemed appropriate by the Council; (C) approve the Assessment Roll, including the method of assessment, with such amendments as it deems just and right; and (D) establish the interest rate or the method of determining the rate of interest which the Assessments shall bear, including the date from which such interest shall accrue, and the terms of prepayment, if any. Assessments shall be levied against all property in the applicable Improvement Area specially benefited by the Project or Projects. The Council shall not approve any Assessment in excess of the special benefits to the property assessed, and the Assessments so approved shall be in proportion to the special benefits. All objections to the Final Assessment Resolution made in writing, shall be filed with the Clerk at or before the time or adjourned time of such hearing. -16- SECTION 4.08. EFFECT OF FINAL ASSESSMENT RESOLUTION. Assessments shall be established upon adoption of the Final Assessment Resolution. The adoption of the Final Assessment Resolution shall be the final adjudication of the issues presented (including, but not limited to, the method of assessment, the Assessment Roll, the plans and specifications, the estimated Cost of the Project, the levy and lien of the Assessments and the interest rate the Assessments shall bear, including the date from which such interest shall accrue, and the terms of prepayments of the Assessments) unless proper steps shall be initiated in a court of competent jurisdiction to secure relief within 20 days following the date of Council action on the Final Assessment Resolution. Notice of the lien of the Assessments shall be recorded in the Official Records Book in the office of the Clerk. Such notice shall provide in general the locations of the property which are assessed and direct interested parties to the Assessment Roll, upon approval thereof. The Final Assessment Resolution shall provide for the rate of interest or the method of determining the rate of interest which the Assessments shall bear, including the date from which such interest shall accrue. During the establishment of the final Assessments, if the amount of the Assessment against any lot or parcel is reduced or abated, the amount of such Reduction or abatement may be made chargeable against the applicable Improvement -17- Area unless the non -ad valorem assessment upon the entire Improve- ment Area be reduced or abated. The official Assessment Roll shall be maintained in the office of the Clerk. BECTION 4.09. PAYMENT OF ASSESSMENTS. Except as otherwise provided by resolution of the Council, no prepayments of Assess- ments shall be accepted prior to the adoption of the Final Assess- ment Resolution. Thereafter, any prepayments shall be made as specified in the Final Assessment Resolution. The Clerk (or such other official as the Council shall determine by resolution) shall note (mechanically or electronically) on the Assessment Roll any prepayments and shall maintain a record of the name and address of persons making prepayments prior to completion of the Project. The Council, by resolution, may determine the time during which prepayments may be made and the amount of interest and prepayment premium payable at the time of payment. If not prepaid, all Assessments shall be payable in equal principal installments (unless otherwise provided by resolution of the Council), with interest on the outstanding balance at the rate and from the date set by the Final Assessment Resolution. Assessments shall be collected in the manner set forth in Article V hereof. Subject to the provisions of Sections 4.10 and 4.11 hereof, if Bonds or Notes are issued pursuant to this ordinance, the Assessments shall bear interest at a rate not to exceed two percent above the true -is- interest cost of such Bonds or Notes plus any ongoing expenses related to the Bonds and Notes and collection of the Assessments, from the date the Final Assessment Resolution is adopted or such other date as the Council may provide by resolution, payable in each of the succeeding years, not to exceed 30 years, which the Council shall determine by resolution; provided however, that during any period in which Assessments are outstanding and Bonds or Notes have not been issued, the Council may establish an interest rate for the Assessments, not to exceed the maximum rate permitted by law. The Council may provide by resolution that any Assessment may be paid at any time before due, together with any applicable prepayment premium and interest accrued thereon to the date of payment or such later date as shall be determined by the Council by resolution, if such prior payment shall be permitted by the proceedings authorizing any Bonds or Notes for the payment of which such Assessments have been pledged. SECTION 4.10. LIEN OF ASSESSMENTS. All Assessments shall constitute a lien against such property equal in rank and dignity with the liens of all state, county, district or municipal taxes and other non -ad valorem assessments. Except as otherwise provided by law, such lien shall be superior in dignity to all other liens, titles and claims, until paid. D VIM SECTION 4.11. ADDITIONAL PAYMENTS. If Assessments made under the provisions of this Ordinance to defray the Costs of the Project shall be deemed by the Council to be inadequate to meet the obligation owed to Bondholders and to pay fees required for credit enhancement on the Bonds, if any, the Council may adjust the payment period of and the rate of interest on installment payments of the Assessment so that payments of Assessments shall be suffi- cient to satisfy the contractual obligation owed to Bondholders and the credit enhancement provider. However, such adjustment shall not have the effect of increasing the Assessment of any property, including the effect of increasing the amount of Assessment of any property in proportion to the amount of benefits conferred on that property. Further, the Council, in adjusting the interest rates and the period of payment of Assessments, shall follow the provi- sions of this Article IV providing for notice and hearing to interested persons and providing for passage of resolutions establishing Assessments. SECTION 4.12. REVISIONS TO ASSESSMENTS. (A) If any Assessment made under the provisions of this Ordinance to defray the Costs of any Project shall be either in whole or in part annulled, vacated or set aside by the judgment of any court, or if the Council shall be satisfied that any such Assessment is so irregular or defective that the same cannot be 648D enforced or collected, or if the Council shall have omitted to include any property on the Assessment Roll which properly should have been so included, the Council shall take all necessary steps to cause a new Assessment to be made against any property benefited by any Project, following as nearly as may be practicable the provisions of this Ordinance and in case such second Assessment shall be annulled, the Council may obtain and make other Assess- ments until a valid Assessment shall be made. (B) If the actual Cost of the Project exceeds the estimated Cost on which the Assessments were based, the Council may, at its option, increase the amount of the Assessment against all benefited properties within the Improvement Area, following as nearly as may be practicable the provisions of this Ordinance and in case such increased Assessment shall be annulled, the Council may obtain and make other Assessments until a valid Assessment shall be made. (C) If the actual Cost of the Project is less than the estimated Cost on which the Assessments were based, the Council shall reduce the Assessments to an amount consistent with the actual Cost of the Project. Interest paid in respect of the Assessments prior to any such reduction shall not be affected; however, interest payments following any such reduction shall reflect the reduced principal amount of the Assessments. If any Assessment has been prepaid in full prior to the date of any such -21- reduction, the amount of the reduction applicable to such Assess- ment shall be refunded to the owner of the assessed property as of the date of prepayment; provided however, that the City shall not be required to refund an amount less than $5.00 to any single owner. Refunds shall be sent by certified mail, return receipt requested, to the persons who prepaid the Assessments, at the address recorded by the Clerk (or such other official as the Council shall designate by resolution to collect Assessments) pursuant to Section 4.09 hereof. The right of any person to receive a refund pursuant to this Section 4.12 shall expire 24 months from the date upon which refunds are initially mailed. SECTION 4.13. PROCEDURAL IRREGULARITIES. Any informality or irregularity in the proceedings in connection with the levy of any Assessment under the provisions of this Ordinance shall not affect the validity of the same after the approval thereof, and any Assessment as finally approved shall be competent and sufficient evidence that such Assessment was duly levied, that the Assessment was duly made and adopted, and that all other proceedings adequate to such Assessment were duly had, taken and performed as required by this Ordinance; and no variance from the directions hereunder shall be held material unless it be clearly shown that the party objecting was materially injured thereby. Notwithstanding the provisions of this Section 4.13, any party objecting to an Assess- -22- ment imposed pursuant to this Ordinance must file an objection with a court of competent jurisdiction within the time periods pre- scribed herein. SECTION 4.14. APPORTIONMENT OF ASSESSMENTS. The City may, by resolution, provide a procedure by which the lien of an Assess- ment on property may be apportioned between subdivided parcels of such property. Such apportionment shall be reflected on the Assessment Roll. The City may establish a different procedure of apportioning an Assessment lien for each Improvement Area. The City shall not establish a procedure which has a material adverse effect on the security for Bonds issued to finance the Project related to such Assessments. If the City elects not to provide a procedure for apportionment of an Assessment, the full amount thereof shall become immediately due and payable upon subdivision of the property. SECTION 4.13. CORRECTION OF ERRORS AND OMISSIONS. (A) No act of error or omission on the part of the Property Appraiser, Tax Collector, Clerk, Assessment Coordinator, Council or their deputies or employees, shall operate to release or discharge any obligation for payment of an Assessment imposed by the Council under the provision of this Ordinance. Any errors or omissions may be corrected at any time by the Council, or its designee, and when so corrected shall be considered valid ab initio -23- and shall in no way affect the enforcement of the Assessment imposed under the provisions of this Ordinance. (B) when it shall appear that any Assessment should have been imposed under this Ordinance against a lot or parcel of property specially benefited by the Project, but that such property was omitted from the Assessment Roll, the Council may, upon provision of appropriate notice as set forth in this Article IV, impose the applicable Assessment against such benefited property. The Assessment so imposed shall constitute a lien against such property equal in rank and dignity with the liens of all state, county, district or municipal taxes and non -ad valorem assessments, and superior in rank and dignity to all other liens, encumbrances, titles and claims in and to or against the real property involved and may be recorded as provided in Section 4.07 and collected as provided in Article V hereof. (C) The Council shall have the authority at any time, upon its own initiative or in response to a timely filed petition from the owner of any property subject to an Assessment, to correct any error or omission in the adoption of any Assessment Roll, or in the implementation of this Ordinance, including, but not limited to, an error in inclusion or exclusion of any property. SECTION 4.16. LIMITATION ON ASSESSMENTS. The City shall not collect Assessments in excess of the amount necessary to (1) Retire -24- the Bonds or other evidence of indebtedness, if any, secured by the Special Assessments and (ii) repay all Costs incurred by the City with interest thereon at a Rate equal to the true interest cost of the Bonds or other evidence of indebtedness, if any, secured by the Special Assessments, unless such amounts are applied to other improvements within the District which will enhance the value of Benefited Parcels in the same manner as the Project. -25- ARTICLE V COLLECTION OF ASSESSMENTS SECTION 5.01. RESPONSIBILITY FOR ENFORCEMENT. It shall be the duty of the City and its agent, if any, to enforce the prompt collection of Assessments by the means herein provided. The duties related to collection of Assessments may be enforced at the suit of 66% of the holders of Bonds secured by such Assessments in a court of competent jurisdiction by mandamus or other appropriate proceedings or action. SECTION 5.02. COLLECTION BY FORECLOSURE. The City shall have the right to appoint an agent to foreclose and collect all delin- quent Assessments in the manner provided by law. An Assessment shall become delinquent if it is not paid within 30 days from the date any installment is due. The City or its agent shall cause notice to be sent to any property owner who is delinquent in payment of his Assessment installment within 60 days from the date such installment was due. Such notice shall state in effect that the City or its agent shall initiate a foreclosure action within 90 days of the date of the installment due date if it is not paid. Between the 75th and 90th day after the due date of the delinquent installment, the City or its agent may declare the entire unpaid balance of the delinquent Assessment to be in default and cause such delinquent property to be foreclosed in the method now or -26- hereafter provided by law for foreclosure of mortgages on real estate, or otherwise as provided by law. Commencing on the 90th day after the due date of the delinquent installment, the City or its agent shall declare the entire unpaid balance of the Assessment to be in default and cause the delinquent property to be foreclosed as described above. Any Council action required in the collection of Assessments may be by resolution. All costs, fees and expenses, including reasonable attorney fees, related to any foreclosure action as described in Section 5.02 hereof shall be included in any judgment or decree rendered therein. At the sale pursuant to decree in any such action, the City may be the purchaser to the same extent as an individual person or corporation. SECTION 5.03. JOINDER OF ACTIONS. The City may join in one action the collection of Assessments against any or all property assessed in accordance with the provisions hereof. All delinquent property owners whose property is foreclosed shall be liable for an apportioned amount of reasonable costs and expenses incurred by the City and its agents, including reasonable attorney fees, in collection of such delinquent Assessments and any other costs incurred by the City as a result of such delinquent Assessments (including costs paid for draws on a credit facility), and the same shall be collectible as a part of or in addition to, the costs of the action. _27_ SECTION 5.04. USE OF ALTERNATIVE COLLECTION METHOD. In the event the Council utilizes the alternative method of collection of Assessments as described in Section 5.05 hereof, the provisions of Sections 5.01 through 5.03 hereof shall be superseded to the extent of any conflict with applicable law or any agreement between the City and the Property Appraiser or Tax Collector relating to such alternative method. The Clerk shall provide such information to the Property Appraiser and the Tax Collector as shall be necessary to collect the Assessments pursuant to such alternative method. SECTION 5.05. COLLECTION BY TAX COLLECTOR. As an alternative method to collection by the City as provided in Sections 5.01 through 5.03 hereof, the Council may, either at the public hearing held pursuant to Section 4.07 hereof or at such other time as it deems appropriate, authorize the collection of Assessments in the manner provided for the collection of ad -valorem taxes. Such alternative method shall be authorized by resolution of the Council and the City shall comply with all applicable provisions of law relating to such alternative method, including Sections 197.363, 197.3631 and 197.3632, Florida Statutes, and any successor provi- sion thereto. In the event such alternative method is used by the City, the provisions hereof shall be superseded to the degree of any conflict with applicable law or with any agreement between the City and the Property Appraiser or the Tax Collector relating to -28- such alternative method. Any hearing or notice required by this Ordinance may be combined with any other hearing or notice required to collect the Assessments on the same bill as ad valorem taxes. Assessments relating to an individual Project shall be collected either by the method described in Section 5.01 through 5.03 hereof or in this Section 5.05, not by both methods. -29- ARTICLE VI ISSUANCE OF BONDS SECTION 6.01. GENERAL AUTHORITY. Upon adoption of the Final Assessment Resolution or at any time thereafter, the Council shall have the power and it is hereby authorized to provide by resolu- tion, at one time or from time to time in series, for the issuance of Bonds of the City for the purpose of paying all or part of the Cost of the Projects. The principal of and interest on each series of Bonds shall be payable from Pledged Revenues. At the option of the Council, the City may covenant to budget and appropriate from non -ad valorem revenue sources identified by the City by resolution or from general non -ad valorem revenues of the City an amount necessary to make up any deficiency in the payment of the Bonds. The City may issue a single series of Bonds to finance Projects in different Improvement Areas, provided such resolution identifies each Project to be financed and the Improvement Area in which it is located. SECTION 6.02. TERMS OF THE BONDS. The Bonds shall be dated, shall bear interest at such rate or rates, shall mature at such times, as may be determined by resolution of the Council, and may be made redeemable before maturity, at the option of the City, at such price or prices and under such terms and conditions as may be fixed by the Council. Said Bonds shall mature not later than two -30- years after the last installment in which said Assessments may be paid, as provided in Section 4.09 hereof, and shall bear interest at a rate not exceeding the maximum rate provided by law. The Bonds may, at the option of the Council, bear interest at a variable rate. The Council shall determine by resolution the form of the Bonds, the manner of executing such Bonds, and shall fix the denomination or denominations of such Bonds, the place or places of payment of the principal and interest, which may be at any bank or trust company within or without the State of Florida, and such other terms and provisions of the Bonds as it deems appropriate. The Bonds may be sold at public or private sale for such price or prices as the Council shall determine by resolution. The Bonds may be delivered to any contractor for payment for his work in con- structing a Project or may be sold in such manner and for such price as the Council may determine by resolution to be for the best interests of the City. SECTION 6.03. VARIABLE RATE BONDS. The City may, at its option, issue Bonds bearing a variable rate of interest, whereupon the interest rate and installment payments applicable to Assess- ments shall be subject to adjustment as provided by resolution of the Council. In such event, the City may impose on such annual installment payments such rate of interest as shall not exceed the maximum amount permitted by Section 4.09 hereof as shall be -31- determined on the 15th day prior to the date the Assessment Roll is certified for collection to the Clerk or the Tax Collector, as appropriate. If amounts of interest collected by the City exceed, in the aggregate, the amount of interest that would have been collected if interest was imposed at the maximum rate permitted to be charged on Assessments as provided in Section 4.09 hereof, the excess amounts shall be credited to the next installment of the Assessment or be returned to the property owners who paid such amounts, as provided by resolution of the Council. If the amounts of interest collected by the City are less, in the aggregate, than the amount of interest that would have been collected if interest was imposed at the maximum rate permitted to be charged on Assess- ments as provided in Section 4.09 hereof, such deficiency may be imposed as a surcharge on the next installment. SECTION 6.04. TEMPORARY BONDS. Prior to the preparation of definitive Bonds of any series, the Council may, under like restrictions, issue interim receipts, interim certificates, or temporary Bonds, exchangeable for definitive Bonds when such Bonds have been executed and are available for delivery. The Council may also provide for the replacement of any Bonds which shall become mutilated, or be destroyed or lost. Bonds may be issued without any other proceedings or the happening of any other conditions or -32- things than those proceedings, conditions or things which are specifically required by this Ordinance. SECTION 6.05. BOND ANTICIPATION NOTES. In anticipation of the sale of Bonds, the City may, by resolution, issue Notes and may renew the same from time to time. Such Notes may be paid from the proceeds of the Bonds, the proceeds of the Assessments, the proceeds of the Notes and such other legally available moneys as the Council deems appropriate. Said Notes shall mature within five years of their issuance and shall bear interest at a rate not exceeding the maximum rate provided by law. The Council may issue Bonds or renewal Notes to repay the Notes. The proceeds of the Bonds and Notes, unless otherwise used to refund Bonds or Notes, shall be used to pay the Costs of the Projects. The Notes shall be issued in the same manner as the Bonds. SECTION 6.06. NEGOTIABLE INSTRUMENTS. Bonds and Notes shall be, and shall be deemed to be, for all purposes, negotiable instruments, subject only to the provisions of the Bonds and Notes for registration. SECTION 6.07. TAXING POWER NOT PLEDGED. Bonds issued under the provisions of this Ordinance shall not be deemed to constitute a pledge of the faith and credit of the City or any Improvement Area, but such Bonds shall be payable only in the manner provided herein and by the resolution authorizing the Bonds, from Pledged -33- Revenues and such other funds, if any, that the Council may covenant to budget and appropriate pursuant to Section 6.01 hereof. The issuance of Bonds under the provisions of this ordinance shall not directly or indirectly obligate the City or any Improvement Area to levy or to pledge any form of ad valorem taxation whatever therefor. No holder of any such Bonds shall ever have the right to compel any exercise of the ad valorem taxing power on the part of the City or any Improvement Area to pay any such Bonds or the interest thereon or to enforce payment of such Bonds or the interest thereon against any property of the City or any Improvement Area, nor shall such Bonds constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City or any Improvement Area, except the Pledged Revenues. SECTION 6.08. SECURITY FOR BONDS. During any period in which Bonds are outstanding, the Pledged Revenues shall be deemed to be funds held for the benefit of Bondholders, to be held and applied solely as provided in this Ordinance and in the resolution author- izing the Bonds. SECTION 6.09. REMEDIES OF BONDHOLDERS. Any holder of Bonds, except to the extent the rights herein given may be restricted by the resolution authorizing issuance of the Bonds, may, whether at law or in equity, by suit, action, mandamus or other proceedings, protect and enforce any and all rights under the laws of the state -34- or granted hereunder or under such resolution, and may enforce and compel the performance of all duties required by this part, or by such resolution, to be performed by the City. SECTION 6.10. NO REFERENDUM REQUIRED. No referendum or election in the City or any Improvement Area shall be required for the exercise of any of the provisions of this Ordinance, unless such referendum or election is required by the Constitution of the State of Florida. SECTION 6.11. REFUNDING BONDS. The City may, by resolution of the Council, issue Bonds to refund any Bonds issued pursuant to this Ordinance and provide for the rights of the holders hereof. Such refunding Bonds may be issued in an amount sufficient to provide for the payment of the principal of, redemption premium, if any, and interest on the outstanding Bonds to be refunded. In the event the principal amount of the refunding Bonds shall be greater than the outstanding principal amount of the Bonds to be refunded, the Council may increase the non -ad valorem assessments which secure such refunding Bonds up to an amount not to exceed the difference between the respective principal amounts of the refund- ing Bonds and the outstanding refunded Bonds, provided notice to the affected property owners is given in accordance with the notice provisions of Article IV hereof and a public hearing is held by the Council. -35- GENERAL PROVISIONS SECTION 7.01. SEVERABILITY. The provisions of this Ordinance are severable; and if any section, subsection, sentence, clause or provision is held invalid by any court of competent jurisdiction, the remaining provisions of this Ordinance shall not be affected thereby. SECTION 7.02. ALTERNATIVE METHOD. This Ordinance shall be deemed to provide an additional and alternative method for the doing of the things authorized hereby and shall be regarded as supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing or which may hereafter come into existence. This Ordinance, being necessary for the health and welfare of the inhabitants of the City, shall be liberally construed to effect the purposes hereof. SECTION 7.03. CODIFICATION. It is the intention of the Council and it is hereby provided that the provisions of this Ordinance shall become and be made a part of the Code of the City of Edgewater, Florida; that the sections of this Ordinance may be renumbered or relettered to accomplish such intention; and that the word "ordinance" may be changed to "section," "article," or other appropriate designation. -36- SECTION 1.6VElFECTIVE DATE. This Resa&utien shall take effect immediately upon its adoption. This was introduced and sponsored by Councilperson Martin and was read and passed by a vote of the City Council of the City of Edgewater, Florida at a Special meeting held on the 25 day of February 1991, and authenticated as provided by law. ORofi"c Roll Call Vote on liesolution No. _9� -G -( as follows: TANYA W�90 NORA WE GILLESPIE, Councilwoman �g < MIKE HAYS, Co cilman �A&�'6-A,, LOUISE MARTIN, Councilwoman 36 The second reading of this Ordinance to be at anerial meeting of the City Council of the City of Edgewater, Florida, to be held on the a day of Murrh , 1991. SECOND READING: COUNCILMAN N/- - ZONE FOUR ={`Thi:; Ordinance read and adopted on second reading at a Snarial :meeting of the City Council of the City of Edgewater, Florida, and authenticated this 11 day of March , 1991. 4YOV���� Approved as to form and legal sufficiency. For use and reliance of the City of Edgewater only. �ttorney 37 Ord. 91-0-1