400ORDI)TANCE1 NO. 400
AN ORDINANCE PROVIDING FOR THE CONSTRUCTION
OF A NEW SANITARY SEWERAGE SYSTEM, INCLUDING
COLLECTION LINES, PUMPING STATIONS, FORCE MAINS,
TREATMENT PLANT, SOFTENING UNIT FOR WATER TREAT-
MENT PLANT AND APPURTENANT FACILITIES, IN THE
CITY OF EDGEWATER, FLORIDA, TO BE COMBINED WITH
THE gIST11Ti SATERWORKS SYSTEM OF SAID CITY AND
OPERATED THEREWITH AS A SINGLE UTILITY; AUTHOR-
IZING THE ISSUANCE OF $1,692,000.00 WATERWORKS
AND SEWER SYSTEM REFUNDING AND IMPROVEMENT
REVENUE BONDS TO FINANCE THE COST THEREOF AND
TO REFUND OUTSTANDING WATER REVENUE CERTIFICATES
OF THE CITY, DATED FEBRUARY 1, 1958; PLEDGING
THE NET REVENUES OF THE COMBINED SYSTEM AND THE
PROCEEDS OF THE CITY'S UTILITY TAX TO SECURE
THE PAYMENT THEREOF; AND PROVIDING FOR THE
RIGHTS OF THE HOLDERS OF SAID BONDS.
BE IT ENACTED by the people of the City of Edgewater,
Florida:
SECTION 1. This Ordinance is enacted pursuant to the
provisions of Chapter 27532, Laws of Florida, Special Acts of
1951, as amended, and other applicable provisions of 1".
SECTION 2. It is hereby found, ascertained and deter-
mined as follows:
A. The City of Edgewater, Florida (hereinafter called
the "City") owns, operates and maintains a waterworks system
for the benefit of its inhabitants.
B. The City Council of the City of Edgewater does
hereby determine that it is necessary for the preservation of
the health, welfare, convenience and safety of the City and
its inhabitants to construct, establish, operate and maintain
facilities consisting of a new sanitary sewerage system, including
collection lines,pumping stations, force mains, treatment plant,
softening unit for water treatment plant and appurtenant facili-
ties in accordance with certain plans and specifications now
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on file with the City Clerk and operate the same with said water-
works system as a combined utility, hereinafter called the "system".
C. Pursuant to Section 167.431, Florida Statutes,
the City, by ordinance No. 13, enacted January 23, 1952, imposed
a continuing excise tax upon the purchase of electricity, metered
or bottled gas (natural, liquified petroleum gas or manufactured),
and local telephone and telegraph service within the corporate
limits of the City (hereinafter referred to as the "utility
tax"). It is deemed necessary and desirable to pledge to the
payment of the principal and interest on the bonds herein au-
thorized, in addition to the net revenues to be derived from
the operation ofthe system, the proceeds of the utility tax
until such time as said net revenues of the system shall have
equaled for twelve (12) out of thelast preceeding eighteen (1$)
months at least one and one-half (1�) times the average annual
debt service on all bonds then outstanding.
D. The City has heretofore issued and sold and has
outstanding Water Revenue Certificates, dated February 1, 1958,
in the principal amount of $369-y000.
E. The revenues being derived from the operation of
the existing waterworks system and the proceeds from the utility
tax have been heretofore pledged to the payment of said outstanding
revenue certificates; and it is deemed necessary and desirable
to refund the same (by exchange for, or by redemption with the
proceeds from the sale of, the Series A bonds herein authorized)
in order to pledge the utility tax and said revenues, which shall
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become a part of the revenues of the system, to —the payment of
the principal of and interest on the bonds herein authorized.
F. The estimated annual net revenues to be derived
from the operation of the system, together with the proceeds
to be derived annually from the utility tax, will be sufficient
in the aggregate to pay the principal of and interest on the
bonds herein authorized as the same become due, aed all sinking
fund, reserve and other payments provided for in this Ordinance.
G. The City has been advised by its engineers that
the cost of the construction and establishment of the project
in accordance with their plans and specifications, is estimated
at not exceeding One Million Five Hundred Seventy-three Thousand
Dollars ($1,573,000), such cost to be paid in part from the
proceeds from the sale of the Series B bonds hereinafter author-
ized. Such cost of construction and establishment of the pro-
ject shall be deemed to include the acquisition of any land or
interest therein or of any fixtures or equipment, or property
necessary or convenient therefor, the cost of labor and materials
to complete said construction, engineering and legal expenses,
expenses for estimates of costs and revenues, expenses for plans,
specifications and surveys, administrative expenses, interest
during construction and other necessary miscellaneous expenses.
Interest to accrue during construction is estimated at $79,360,
which amount is included in the cost and shall be paid
therefrom into the Sinking Fund hereinafter provided and
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used to pay interest accruing during the period of construction
of the project.
H. This Ordinance is declared to be and shall con-
stitute a contract between the City of Edgewater, Florida, and
the holders of all such bonds; the covenants and agreements
herein set forth to be performed by the City are and shall be
for the equal benefit, protection and security of the legal
holders of any and all such bonds issued under this Ordinance
and the coupons attached thereto, all of which shall be of
equal rank, without preference, priority or distinction of any
of the bondsor coupons over any other, except as hereinafter
provided.
I. The City is not, under this Ordinance, obligated
to levy any taxes on any real property to pay the principal of
or interest on the bonds hereinafter authorized, or to pro-
vide the amounts herein required to be deposited in any repair,
reserve or sinking fund or any other fund hereinafter created.
Such bonds issued pursuant to this Ordinance shall not con-
stitute alien upon the system or on any other property of or
in the City of Edgewater.
SECTION 3. The City is hereby authorized to construct,
establish, operate and maintain facilities consisting of a
new sanitary sewerage system, including collection lines, pumping
stations, force mains, treatment plant, softening unit for water
treatment plant and appurtenant facilities, all in accordance
with said plans and specifications on file with the City Clerk.
SECTION 4. The following terms in this Ordinance shall
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have the following meaning unless the text otherwise expressly
requires:
A. "Gross Revenues" from the operation of the system
shall mean all moneys received from rates, fees, rentals or
other charges or income received by the City or accruing to it
or any other board or agency of the City in control of the
management and operation of the system all calculated in accordance
with sound accounting practices.
H. "operating Expenses" of the system shall mean all
current expenses, paid or accrued, for the operation, maintenance
and repair of the system and its facilities, as calculated in
accordance with sound accounting practices and shall include,
without limiting the generality of the foregoing, insurance pre-
miums, administrative expenses of the City relating solely to
the system, labor, cost of materials and supplies used for current
operations and charges for the accumulation of appropriate reserves
for current expenses not annually recurrent but which are such
as may reasonably be expected to be incurred. Operatingexpenses
shall not include any allowance for depreciation or renewals or
replacements of capital assets of the system.
C. "Net Revenues" of the system shall mean the gross
revenues as defined in subsection A after deducting only operating
expenses of the same as defined in subsection E.
D. "Fiscal Year" shall mean the period commencing on
November 1st of each year and continuing to and including the
succeeding October 31st.
E. "System" shall mean the existing waterworks system
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of the City and the additional facilities of the project to be
constructed from the proceeds of the bonds herein authorized.
SECTION 4. Subject and pursuant to the privisions
of this Ordinance, revenue and refunding bonds of the City to
be known as "Waterworks and Sewer System Refunding and Improve-
ment Revenue Bonds", herein sometimes referred to as "bonds",
are hereby authorized to be issued in the aggregate principal
amount of One Million Six Hundred Ninety-two Thousand Dollars
($1,692,000), consisting of $369,000 Series A bonds to refund
outstanding water Revenue Certificates of the City, dated
February 1, 1958, and $1,323,000 Series B bonds to finance
a part of the cost of the project.
SECTION 5. The bonds issued hereunder shall be dated
February 1, 1964; shall be numbered from one upwards within
the respective Series; shall be in the denomination of $1,000
each; and shall mature serially in numerical order, lowest
numbers first, on February 1 in the years and amounts as follows:
Year
Amount
Year
Amount
SERIES A
1965
$ 9,000
1977
$15,000
1966
9,000
1978
16,000
1967
10,000
1979
16,000
1968
10,000
1980
17,000
1969
10,000
1981
18,000
1970
11,000
1982
19,000
1971
11,000
1983
20,000
1972
12,000
1984
21,000
1973
12,000
1985
22,000
1974
13,000
1986
23,000
1975
14,000
1987
23,000
1976
14,000
1988
24,000
SERIES B
1969
15,000
1973
20,000
1970
17,000
1974
21,000
1971
19,000
1975
22,000
1972
20,000 -
1976
23,000
1977
$24,000
1989
$60,000
1978
24,000
1990
62,000
1979
26,000
1991
65,000
1980
27,000
1992
67,000
1981
28,000
1993
70,000
1982
29,000
1994
73,000
1983
30,000
1995
76,000
1984
31,000
1996
79,000
1985
32,000
1997
82,000
1986
33,000
1998
86,000
1987
36,000
1999
89,000
1988
37,000
Bonds of Series A shall bear interest at a rate or
rates of not exceeding four and three -fourths per centum (4-3/4/)
per annum, and bonds of Series B shall bear interest at a rate
or rates of not exceeding four per centum (4/) per annum. Such
interest shall be payable with respect to both Series semi-annually
on February 1 and August 1 of each year. Such bonds shall be
issued in coupon form; shall be payable with respect to both
principal and interest at Bank of New Smyrna, New Smyrna Beach ,
Edgswa=a,Florida, or at the option of the holder, at the main
office of tdKKkK1= Manufacturers Hanover Trust , in the Borough of
Manhattan, City and State of New York; shall be payable in law-
ful money of the United States of America; and shall bear in-
terest from their date, payable in accordance with and upon
surrender of the appurtenant interest coupons as they severally
mature.
SECTION 6. The bonds shall be executed in the name of
the City by the Mayor and countersigned and attested by the
City Clerk, and its corporate seal shall be affixed thereto.
The facsimile signatures of the Mayor and the City Clerk may
be imprinted or reproduced on the bonds; provided that at
least one signature required to be placed thereon sha11 be manually
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subscribed. In case any one or more of the officers who shall
have signed or sealed any of the bonds shall cease to be such
officer of the City before the bonds so signed and sealed shall
have been actually sold and delivered, such bonds may neverthe-
less be sold and delivered as herein provided and may be issued
as if the person who signed or sealed such bonds had not ceased
to hold such office. Any bond may be signed and sealed on be-
half of the City by such person who at the actual time of the
execution of such bond shall hold the proper office in the City,
although at the date of such bonds such person may not have
held such office or may not have been so authorized.
The coupons attached to the bonds shall be authenti-
cated with the facsimile signature of any present or future
Mayor of the City, and the validation certificate on the bonds
shall be executed with the facsimile signature of the Mayor.
The City may adopt and use for such purposes the facsimile sig-
nature of any person who shall have been such Mayor at any
time on or after the date of the bonds, notwithstanding that
he may have ceased to be such officer at the time such bonds
shall be actually sold and delivered.
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SECTION 7. The bonds issued hereunder shall be, and
shall have all of the qualities and incidents of negotiable
instruments under the law merchant and the Negotiable Instru-
ments Law of the State of Florida, and each successive holder,
in accepting any of said bonds or the coupons appertaining
thereto, shall be conclusively deemed to have agreed that such
bonds shall be and have all of the qualities and incidents of
negotiable instruments under the law merchant and the Negotiable
Instruments Law of the State of Florida, and each successive
holder shall further be conclusively deemed to have agreed that
such bonds shall be incontestable in the hands of a bona fide
holder for value in the manner provided hereinafter in the form
of such bonds.
SECTION 8. In case any bond shall become mutilated,
or be destroyed, stolen or lost, the City may in its discretion
issue and deliver a new bond with all unmatured coupons attached
of like tenor as the bond and attached coupons, if any, so
mutilated, destroyed, stolen or lost, in exchange and substitution
for such mutilated bond, upon surrender and cancellation of
such mutilated bond and attached coupons, if any, or in lieu
of and substitution for the bond and attached coupons, if any,
destroyed, stolen or lost, and upon the holder furnishing the
City proof of his ownership thereof and satisfactory indemnity
and complying with such other reasonable regulation and conditions
as the City may prescribe and paying such expenses as the City
may incur. All bonds and coupons so surrendered shall be can-
celled by the Clerk of the City. If any such bonds or coupons
shall have matured or be about to mature, instead of issuing a
substitute bond or coupon,the City may pay the same, upon being
indemnified as aforesaid, and if such bond or coupon be lost,
stolen or destroyed, without surrender thereof.
Any such duplicate bonds and coupons issued pursuant
to this section shall constitute original, additional contractual
obligations on the part of the City whether or not the lost,
stolen or destroyed bonds or coupons be at any time found by
anyone, and such duplicate bonds and coupons shall be entitled
to equal and proportionate benefits and rights as to lien on
and source and security for payment from thefunds, as herein-
after pledged, to the same extent as all other bonds anzcoupons
issued hereunder.
SECTION 9. Bonds maturing on or after February 1,
1970, shall, at the option of the City, be redeemable in whole
or in part, in inverse numerical and maturity order on February
1, 1969, or upon any interest payment date thereafter, upon
not less than thirty days prior notice, at par and accrued
interest, plus the following premiums:
Three per centum (3%) of the par value thereof
if redeemed on February 1, 1969 or thereafter,
to and including February 1, 1974;
Two and one-half per centum (2'%) of the par
value thereof if redeemed on August 1, 1974
or thereafter, to and including February 1, 1979;
Two per centum (2%) of the par value thereof if
redeemed on August 1, 1979 or thereafter, to and
including February 1, 1984;
One and one-half per centum (1'z/) of the par
value thereof if redeemed on August 1, 1984
or thereafter, to and including February 1, 1989;
One per centum (1%) of the par value thereof if
redeemed on August 1, 1989 or thereafter, to and
including February 1, 1994;
Without premium if redeemed on August 1, 1994,
or thereafter, but prior to maturity;
provided, however, that a notice of such redemption shall have
been published at least once at least thirty (30) days prior
to the redemption date in a newspaper of general circulation in
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Edgewater, Florida, and in a financial newspaper published in
New York City, New York; and further provided that written
notice of such redemption shall also be given to the paying
agents named in the bonds at least thirty (30) days before such
redemption date.
SECTION 16. The bonds may be registered at the option
of the holder as to principal only at the office of the City
Clerk, such registration to be noted on the back of said cer-
tificates in the space provided therefor. After such regis-
tration as tolrincipal only, no transfer of the bonds shall
be valid unless made at said office by the registered owner,
or by his duly authorized agent or representative and similarly
noted on the bonds, but the bonds may be discharged from regis-
tration by beingin like manner transferred to bearer and there-
upon transferability by delivery shall be restored. At the
option of the holder, the bonds may thereafter again from time
to time be registered or transferred to bearer as before. Such
registration as to principal only shall not affect the negoti-
ability of the coupons which shall continue to pass by delivery.
SECTION kl. The text of the bonds, the interest cou-
pons to be attached thereto and the certificate of validation
shall be of substantially the following tenor with such varia-
tions, omissions and insertions as may be necessary and desirable
and authorized or permitted by this Ordinance or any subsequent
ordinance adopted prior to the issuance thereof:
No. $1,000
UNITED STATES OF AMERICA
STATE OF FLORIDA
CITY OF EDGEWATER
WATERWORKS AND SEWER SYSTEM
REFUNDING AND IMPROVEMENT REVENUE BOND
SERIES_
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KNOW ALL MEN BY THESE PRESENTS, that the City of
Edgewater (hereinafter referred to as the "City"), a municipal
corporation of the State of Florida,for value received, hereby
promises to pay to the bearer hereof or, if this bond be regis-
tered, to the registered holder as herein provided, on the first
day of February, 19_, solely fromthe special funds hereinafter
mentioned, the principal sum of
ONE THOUSAND DOLLARS
and to pay solely from said special funds, interest thereon at
the rate of per centum (%) per annum,
semi-annually on the first day of February and the first day
of August of each year upon the presentation and surrender of
the annexed coupons as they severally mature. Both principal
of and interest on this bond are payable in lawful money of the
United States of America at Bank of New Smyrna,
New Smyrna Beach , Florida, or, at the option of the
holder, at the main office of 39MUtUDM Manufacturers Hanover Trusj
in the Borough of Manhattan, City and State of New York.
This bond is one of an authorized issue of bonds in
the aggregate principal amount of $1,692,000.00, of like date,
tenor and effect, except as to series, number, interest rate
and date of maturity, issued to refund outstanding Water Revenue
Certificates cf the City, dated February 1, 1958, and to finance
the cost of constructing a new sanitary sewerage system, in-
cluding collection lines, pumping stations, force mains, treat-
ment plant, softening unit for water treatment plant and appurtenant
facilities, in the City, to be combined with the existing waterworks
system of the City and operated therewith as a single utility(herein
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referred to as the "system") under the authority of and in full
compliance with the Constitution and Statutes of the State of
Florida, particularly the Charter of the City and Ordinance
No. 400 , duly adopted by the City Council of the City on March 2 ,
1964 (herein referred to as "Ordinance"), and is subject to
all the terms and conditions of said Ordinance.
This bond and the coupons appertaining thereto are
secured by and payable solely as to principal and interest from
the net revenues to be derived from the operationof the system
and the proceeds to be derived from a continuing excise tax upon
the purchase of electricity, metered or bottled gas (natural,
liquified petroleum gas or manufactured), and local telephone
and telegraph service within the corporate limits of the City,
imposed by Ordinance No. 13, enacted January 23, 1952, pursuant
to Section 167.431, Florida statutes (herein referred to as the
"utility tax"). It is expressly agreed by the holder of this
bond that such holder shall never have the right to require or
compel the exercise of the taxing power of the City to the pay-
ment of the principal of and interest on this bond orthe making
of any sinking fund, reserve or other payments provided for in
the Ordinance authorizing this issue of bonds. This bond and
the obligation evidenced thereby shall not constitute a lien
upon the system or any part thereof, or on any other property
of the City.
The City in such Ordinance has covenanted and agreed
with the holders of the bonds of this issue to fix, establish
and maintain sufficient rates and collect such fees or other
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charges for the services and facilities of its system and to
revise the same from time to time whenever necessary which, to-
gether with the utility tax, will always provide revenues
sufficient to pay, and out of such revenues pay, as the same
shall become due, the necessary expenses of operating and
maintaining the system, the principal of and interest on
the bonds of this issue, and all reserve, sinking fund or
other payments provided for in the Ordinance and that such
rates, fees or other charges shall not be reduced so as to be
insufficient to provide revenues for such purpose.
It is hereby certified and recited that all acts,
conditions and things required to exist, to happen and to be
performed precedent to and in the issuance of this bond, exist,
have happened and have been performed in regular and due form
and time as required by the Statutes and Constitution of the
State of Florida applicable thereto, and that the issuance of
this bond and of the issue of bonds of which this bond is one,
does not violate any constitutional, statutory or charter limi-
tation.
This bond and the coupons appertaining thereto are,
and have all the qualities acd incidents of, a negotiable
instrument under the law merchant and the Negotiable Instru-
ments Law of the State of Florida, and the original holder
and each successive holder of this bond or of the coupons ap-
pertaining thereto, shall be conclusively deemed, by his ac-
ceptance thereof,to have agreed that this bond and the coupons ap-
pertaining thereto shall be and have all the qualities and incidaltsof
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negotiable instruments under the law merchant and the Negotiable
Instruments Law of the State of Florida.
The bonds maturing on or after February 1, 1970,shall,
at the option of the City, be redeemable in whole or in part,
in inverse numerical and maturity order on February 1, 1969,
or upon any interest payment date thereafter, upon not less
than thirty days prior notice, at par and accrued interest, plus
the following premiums:
Three percentum (3%) of the par value thereof
if redeemed on February 1, 1969 or thereafter,
to and including February 1, 1974;
Two and one-half per centum (Vj%) of the par
value thereof if redeemed on August 1, 1974
or thereafter, to and including February 1, 1979;
Two per centum (2%) of the par value thereof if
redeemed on August 1, 1979 or thereafter,to and
including February 1, 1984;
One and one-half per centum (lz°,G) of the par
value thereof if redeemed on August 1, 1984
or thereafter, to and including February 1,-1989;
One per centum (1%) of the par value thereof if
redeemed on August 1, 1989 or thereafter, to and
including February 1, 1994;
Without premium if redeemed on August 1, 1994,
or thereafter, but prior to maturity;
provided that notice of such redemption shall be given in the
manner required by the aforesaid Ordinance.
This bond may be registered as to principal only, in
accordance with the provisions endorsed hereon.
IN WITNESS WHEREOF, the City of Edgewater, Florida,
has issued this bond am caused the same to be signed by its
Mayor and countersigned and attested with the facsimile signature
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of its City Clerk and has caused its corporate seal to be im-
pressed hereon and the interest coupons hereto attached to be
executed with the facsimile signature of its said Mayor, all
as of the first day of February, 1964.
CITY OF EDGEWATER, FLORIDA
(SEAL) By
COUNTERSIGNED AND ATTESTED:
City Clerk
NO.
FORM OF COUPON
Mayor
on the first day of 19_, the City of
Edgewater, Florida, will pay to the bearer at
Bank of New Smyrna , New Smyrna Beach, Florida, or, at the
option of the holder, at the main office of bUmkvV= Manufacturers
Hanover Trust in the Borough of Manhattan, City and
State of New York, from the special funds described in the
bond to which this coupon is attached, the sum of
Dollars ($ ), in lawful money of
the United States of America, upon presentation and surrender
of this coupon, being six months interest then due on its
Waterworks and Sewer System Refunding and Improvement Revenue
Bond, Series _, dated February 1, 1964, No.
CITY OF EDGEWATER, FLORIDA
Mayor
(Insert in coupons maturing after first callable date the following:
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"Unless the bond to which this coupon is attached has been
duly called for prior rrdemption and provision duly made for
the payment thereof").
VALIDATION CERTIFICATE
This bond is one of a series of bond which were vali-
dated and confirmed by decree of the Circuit Court of the Seventh
Judicial Circuit of the State of Florida, in and for Volusia
County, rendered on 1964.
Mayor
PROVISION FOR REGISTRATION
This bond may be registered in the name of the holder
on the books to be kept by the City Clerk, as Registrar, or such
other Registrar as may hereafter be duly appointed, as to prin-
cipal only, such registration being noted hereon by such Regis-
trar in the registration blank below, after which no transfer
shall be valid unless made on said books by the registered
holder or attorney duly authorized and similarly noted in the
registration blank below, but it may be discharged from regis-
tration by being transferred to bearer, after which it shall
be transferable by delivery, but it may be again registered as
before. The registration of this bond as to principal shall
not restrain the negotiability of the coupons by delivery merely.
Date of In Whose Name Manner of Signature of
Registration Registered Registration Registrar
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SECTION 1-2. Neither the bonds nor coupons shall be
or constitute general obligations or indebtedness of the City
of Edgewater, Florida, as "bonds" within the meaning of Section
6, Article IX, of the Constitution of Florida, but shall be pay-
able solely from and secured by a lien upon and a pledge of
the special funds as herein provided. No holderor holders of
any bond issued hereunder, or of any coupon appertaining there-
to, shall ever have the right to compel the exercise of the
ad valorem taxing power of the City or taxation in any form of
real property therein, to pay the bonds or the interest there-
on, or be entitled to payment of such principal and interest
from any other funds of the City except from the net revenues
derived from the operation of the system and the proceeds of
the utility tax in the manner provided herein.
t;
SECTION 13. The payment of the debt service on all
of the bonds issued hereunder shall be secured forthwith equally
and ratably by a pledge of the revenues of the system,as now
or hereafter constituted, remaining after payment of the rea-
sonable and necessary expenses of operating and maintaining
the system, and the proceeds of the utility tax. The City does
hereby irrevocably pledge such funds to the payment of the prin-
cipal of and interest on the bonds issued pursuant to this Ordi-
nance and to the payment into the Sinking Fund, at the times
provided, of the sums required to secure to the holders of the
bonds issued hereunder the payment of the principal of and
interest thereon at the respective maturity of the bonds so
held by them.
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SECTION 14. The City hereby covenants that it will
establish with the Bank of New Smyrna ,New Smyrna Beach
Florida, a separate account or accounts (herein collectively
called the "Construction Account") into which shall be deposited
any temporary loans, Government advances and proceeds from the
sale of the Series B bonds hereby authorized (except as herein
provided to pay accrued interest payments and the additional
sum of $79,380.00 as estimated interest during construction and
development of the project) and the additional funds required by
the provisions of the Loan Agreement to be furnished by the City
in order to assure the payment of all costs of the development
of the project. Moneys in the Construction Account shall be
expended only for such purposes as shall have been previously
specified in the project cost estimates approved by the Housing
and Home Finance Agency, or its duly authorized representative,
so long as the Government shall be the holder of any of the
bonds.
Moneys in the Construction Account shall be secured
by the Depository Bank in the manner prescribed by statutes
relating to the securing of public funds. Where the moneys
on deposit in the Construction Account exceed the estimated
disbursements on account of the project for the next ninety
(90) days, the City may direct the Depository Bank to invest
such excess funds in direct obligations of, or obligations the
principal of and interest on which are guaranteed by,the United
States Government, which shall mature not later than eighteen
(18) months after the date of such investment and which shall
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be subject to redemption at any time by the holder thereof. The
earnings from any such investments shall be deposited by the
City in the Construction Account.
Any moneys remaining in the Construction Account after
all costs of the project have been paid shall be promptly used
to the extent possible for the redemption of bonds, and any
balance shall be deposited in the account established for the
payment of the principal and interest of the bonds.
All moneys deposited in said Construction Account
shall be and constitute a trust fund created for the purposes
stated and there is hereby created a lien upon such fund in
favor of the holders of the bonds until the proceeds of the
fund shall have been applied in accordance with this ordinance.
SECTION 15. So long as any of the principal of or
interest on any of the bonds shall be outstanding and unpaid,
or until there shall have been set apart in the Sinking Fund
herein established, including the Reserve Account therein, a sum suf-
£ icient tnpay,when due, the entire principal of the bonds re-
maining unpaid, together with interest accrued or to accrue
thereon, the City covenants with the holders of any and all
of the bonds issued pursuant to this Ordinance as follows:
A. The City covenants and agrees that prior to the
issuance and sale of the bonds to the purchaser or purchasers
thereof it will adopt a budget of Current Expenses for the
system for the remainder of the 1963-1964 fiscal year; and there-
after, on or before the first day of each fiscal year during
which any of the bonds are outstanding, it will adopt an Annual
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Budget of Current Expenses for the ensuing fiscal year, and will
file a copy of such budget or amendments thereto, upon request,
with any bond holder. Current Expenses shall include all rea-
sonable and necessary costs of operating, repairing, maintaining
and insuring the system, but shall exclude depreciation and
payments into the Sinking Fund and into the Renewal and Replace-
ment Fund. The City covenants that the Current Expenses in-
curred in any year will not exceed the reasonable and necessary
amounts therefor, and that it will not expend any amount or in-
cur any obligations for operation,maintenance and repairs in
excess of the amounts provided for Current Expenses in the
Annual Budget except upon resolution by the City that such ex-
penses are necessary to operate and maintain the system., At
the same time and inlike manner, the City shall prepare an esti-
mate of gross revenues to be derived from the operation of the
system during such fiscal year and, through the maintenance of
rates and charges, provide for sufficient gross revenues to
fulfill the requirements of this Section.
B. The City covenants and agrees that as soon as
any of the bonds are issued and sold, it will establish with
a Depository in the State of Florida, which is a member of the
Federal Deposit Insurance Corporation and which is eligible
under the State laws to receive State and Municipal funds, and
to maintain so long as any of the bonds are outstanding, a
special fund to be known as the "City of Edgewater Waterworks
and Sewer System Revenue Fund", hereinafter referred to as the
"Revenue Fund'. The City irrevocably pledges to deposit into
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the Revenue Fund promptly as received all cash income derived
from the ownership and operation of the system and all proceeds
of the utility tax. Said Revenue Fund shall be held in the
custody of the Treasurer of the City, separate and apart from
all other funds, and shall be expended and used only in the
manner and order specified in subsections C, D, E and F.
C. The City covenants and agrees to establish with
a Depository in the State of Florida, which is a member of the
Federal Deposit Insurance Corporation, and which is eligible under
the State laws to receive State and Municipal funds, a special
fund to be known as the "Waterworks and Sewer System Operation
and Maintenance Fund", which shall be used exclusively for the
purpose of receiving funds to be transferred monthly by the City
from the Revenue Fund, and for paying, as they accrue, the
Current Expenses of the system pursuant to the Annual Budget.
Current Expenses of the system, as herein defined, shall be
payable from month to month, as a first charge upon the Revenue
Fund and the City shall make appropriate transfers to the operation
and Maintenance Fund for said purpose. Any balance remaining
in the operation and Maintenance Fund at the end of the fiscal
year not required to pay costs incurred during said fiscal
year, shall be deposited promptly into the Revenue Fund.
D. The City covenants and agrees to establish with
a Depository in the State of Florida, which is a member of the
Federal Deposit Insurance Corporation, and which is eligible
under the State laws to receive State and Municipal funds,a
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special fund or funds, collectively called the "Waterworks and
Sewer system Bond and Interest sinking Fund", hereinafter re-
ferred to as the "Sinking Fund", to be used exclusively for the
purpose of paying principal and interest on said bonds. Into
said Fund there shall be deposited all accrued interest and any
premium received from the sale of the bonds; and, in addition
there shall be paid into the sinking Fund the sum of $79,380.00
from the proceeds of the sale of the bonds, such latter sum being
the amount required for the payment of interest on the bonds
(or on temporary loans made in anticipation of the sale of the
bonds) during the period of construction and development of the
project. Thereafter, as soon as any of the bonds are sold and
delivered, and after paying, or providing for the payment of,
Current Expenses for the current month, the City shall transfer
on or before the 15th day of each month from the Revenue Fund
and deposit to the credit of the Sinking Fund, the following
amounts:
1. Beginning with and including the month in which
interest sha111ast be payable from the proceeds of the sale
of the bonds, a sum equal to 1/6 of the next succeeding interest
installment to become due on all bonds then outstanding, and
2. Beginning on February 15, 1964, a sum equal to
1/12 of the principal of the bonds maturing on the next suc-
ceeding anniversary date.
3. After fulfillment of paragraphs 1 and 2 of this
subsection, beginning on February 15, 1964, the city shall
transfer monthly from the Revenue Fund and deposit to the credit
Ir4cfl
of said Sinking Fund, as a "Debt Service Reserve", a sum equal
to eighty per centum (80%) of the moneys remaining in the Reve-
nue Fund, such monthly transfers to continue until the total
amount in the Debt Service Reserve is at least equal to $100,000;
and thereafter, the City shall in like manner and amount make
such transfers as are necessary to build up and maintain a
Debt Service Reserve equal to $100,000.
E. The City covenants and agrees to establish with
a Depository in the State of Florida, which is a member of the
Federal Deposit Insurance Corporation and which is eligible
under State laws to receive State and Municipal funds, a special
fund to be known as the "Waterworks and Sewer system Renewal
and Replacement Fund", into which shall be deposited monthly
by the City, beginning February 15, 1964, by transfer out of
the Revenue Fund, afterfulfillment of the requirements of sub-
sections C and D above, any moneys remaining therein and avail-
able. Such monthly transfers shall continue until the total
amount in the Renewal and Replacement Fund equals $50,000; and
thereafter, the City shall in like manner and amount make such
transfers as are necessary to build up and maintain therein
the sum of $50,000. The funds in said Renewal and Replacement
Fund shall be used by the City, upon appropriate justification
and resolution, only for the purpose of paying the cost of
unusual and extraordinary maintenance, repairs, renewals and
replacements not included in the Annual Budget of Current Ex-
penses, and for paying the costs of constructing additions, extensions
and improvements to the system which will either enhance its
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revenue -producing capacity, reduce Operating Expenses and/or
provide improved service; provided, however, that in the event
the available balance in the Sinking Fund on any January 20th
and/or July 20th shall be insufficient to pay the next maturing
installment of interest and/or principal, the City shall trans-
fer from said Renewal and Replacement Fund such amounts as
may be required to eliminate the deficiency in said Sinking
Fund and to avoid default.
F. Subject to the provisions for the disposition of
revenues of the system and the proceeds of the utility tax as
provided above in subsections C, D and E of this section, which
are cumulative, and after paying or providing for the payment
of debt service on any subordinate obligations, the City may
at the end of each fiscal year transfer the balance of excess
funds in the Revenue Fund to the Sinking Fund for their prompt
use in redeeming bonds, in inverse maturity order, or acquiring
outstanding bonds for retirement, at not to exceed the then
applicable call price; or the City may use such excess funds
for payment of the cost of improving existing facilities or
constructing additional facilities of the system or for any
other lawful purpose.
G. The City covenants and agrees to establish, to
revise from time to time, and to maintain always such water
ana sewer rates and charges which, together withthe proceeds
of the utility tax, will produce cash revenues sufficient to
pay the cost of annual debt service and the cost of opration
and maintenance of the system and to build up and maintain the
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required reserves as more fully described in subsectionsC, D
and E of this section.
H. The City covenants and agrees that so long as any
of the bonds authorized herein are outstanding and unpaid, it
will mt repeal, amend or modify Ordinance No. 13 pursuant to
which the utility tax is received and collected, in any manner
that shall reduce or materially impair or adversely affect the
obligation of the City to use and apply the proceeds of the
utility tax in the mannerprovided herein. Provided, however,
that said proceeds from the utility tax shall be and are hereby
permanently released from the lien hereby impressed thereon,
for and as additional security fortne payment of the princi-
pal of anu interest on the bonds herein authorized, at such
time as the net revenues of the system shall have equaled for
twelve (12) out of the last preceding eighteen (18) months at
lease one ana one-half (1%) times the average annual debt ser-
vice on all bonds then outstanding and a certificate as to
such fact shall have been made by an independent public accountant
and filed in the minutes of the City Council of the City.
I. The City covenants and agrees that simultaneously
with the delivery of the bonds herein authorized the corpus of
each of the Water System Revenue Fund, Certificate and Interest
sinking Fund and Reserve, and Depreciation Fund, established in
and by the ordinance authorizing the issuance andsale of the
City's Water Revenue Certificates,dated February 1, 1958, will
be transferred to the similarly designated Funds established
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herein.
J. ISSUANCE OF OTHER OBLIGATIONS:
(1) The City covenants and agrees that it will not
issue any other obligations payable from or secured by the reve-
nues of the project or any other security pledged to secure pay-
ment of the bonds herein authorized except after meeting the
conditions hereinafter set forth, unless the lien of such obli-
gations is junior and subordinate in all respects to the lien
of the bonds herein authorized.
(2) The City covenants and agrees that in the event
the cost of construction or completion of the project, as here-
inbefore described, shall exceed the estimated cost thereof as
stated herein, it shall deposit into the Construction Account,
in addition to any other funds deposited therein, the amount
of such excess out of funds available to it for such purpose.
The City may provide such excess through the issuance of
parity bonds, to purchasers other than the Government, pro-
vided that it has obtained (a) the consent of the holders of
at least 65% in principal amount of the bonds outstanding if
the bonds have been sold and delivered, or (b) the consent of
the Government if the bonds have not been sold and delivered.
(3) The City shall have the right to add new sewer and water
facilities and related auxiliary facilities by the issuance of
one or more additional series of bonds to be secured by a
parity lien on and ratably payable from the revenues and any
other security pledged to these bonds, provided in each instance
that:
(a) The facility or facilities to be built from the
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proceeds of the additional parity bonds is or are made a part of
the system and its or their revenues are pledged as additional
security for the additional parity bonds and the outstanding bonds.
(b) The City is in compliance with all covenants and
undertakings in connection with all of its bonds then outstanding
and payable from the revenues of the system or any part thereof.
(c) The annual net revenues, defined as gross revenues
less current expenses of the system, together with the proceeds
from the utility tax (if the same shall not be released from the
lien hereof, or if a first lien shall be re -imposed thereon as
security for the payment of the bonds herein authorized and the
additional parity bonds), for the fiscal year next preceding the
issuance of additional parity bonds, are certified by an independ-
ent public accountant employed by the City, to have been equal to
at least one and fifty hundredths (1.50) times the average annual
requirements for principal and interest on all bonds then out-
standing and payable from the revenues of the system.
(d) The estimated net revenues of the facility or
facilities to be constructed or acquired with the proceeds of such
additional bonds (and any other fund pledged as security), when
added to the estimated future net revenues of the then existing
system shall have at least one and fifty hundredths (1.50) times
the average annual debt service requirements for principal and
interest on all outstanding bonds payable from the revenues of
the system and on the additional bonds to be issued. The
calculation of average annual debt service requirements for
principal and interest on the additional bonds to be issued
shall be determined on the basis of the principal of, and
W-M
interest on, such bonds being payable in approximately equal
installments. In addition, said estimated annual net revenues
shall be at least one and twenty -hundredths (1.20) times the
highest future annual debt service requirement for principal
and interest on all outstanding bonds payable fray the pledged
revenues and on the additional bonds proposed to be issued.
Future net revenue estimates shall be furnished by a recognized
independent consulting engineer and approved by both the chief
officer and the governing body of the City and shall be fore-
cast over a period not exceeding ten (10) years from the date
of the additional bonds proposed to be issued.
(4) The City hereby covenants and agreesthat in the
event additional series of parity bonds are issued, it shall:
(a) Adjust the deposits into the Sinking Fund, on
the same basis as that prescribed in the subsection hereof estab-
lishing such account,to reflect the average annual debt service
on the additional bonds;
(b) Adjust the amount of the debt service reserve
to a sum equal to not less than twice the maximum annual debt
service on the bonds then outstanding and such additional parity
bonds, the additional debt service to be accumulated in the
manner hereinbefore provided;
(c) Adjust the maximum amount to be deposited annually
into the Renewal and Replacement Fund on the same basis as that
prescribed in the subsection establishing such fund, taking
into account the future replacement cost of the facilities and
equipment to be constructed or acquired with the proceeds of
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of such additional bonds; and
(d) Make such additional bonds payable as to prin-
cipal on February 1 of each year in which principal falls due
and payable as to interest on February 1 andAugust 1 of each
year.
(5) The City covenants and agrees that, so long as
any of the bonds are outstanding, it will not sell orotherwise
dispose of any of the system facilities or any part thereof, and,
except as provided for above, it will not create or permit to
be created, any charge or lien on the reveuues thereof ranking
equal or prior to the charge or lien on the bonds. Notwith-
standing the foregoing, the City may at any time permanently
abandon the use of, or sell at fair market value, any of its
system facilities, provided that:
(a) It is in compliance with all covenants and under-
takings in connection with all of its bonds then outstanding
and payable from the revenues of the system and the Debt Service
Reserve for such bonds has been fully established;
(b) It will, in the event of sale, apply the pro-
ceeds to either (1) redemption of outstanding bonds in accord-
ance with the provisions governing prepayment of bonds in ad-
vance of maturity, or (2) replacement of the facility so dis-
posed of by another facility the revenues of which shall be in-
corporated into the system as hereinbefore provided;
(c) It certifies, prior to any abandonment of use,
that the facility to be abandoned is no longer economically
feasible of producing net revenues; and
M11D
(d) It certifies that the estimated net revenues
of the remaining system facilities for the then next succeeding
fiscal year, plus the estimated net revenues of the facility,
if any, to be added to the system,satisfy the earnings test
hereinbefore provided inthis subsection J governing issuance
of additional bonds.
(6) If in any subsequently issued series of bonds
secured by aparity lien on the revenues of the system it is pro-
vided that excess revenues in the Revenue Fund Account shall
be used to redeem bonds in advance of scheduled maturity, or
if the City, at its option, undertakes to redeem outstanding
bonds in advance of scheduled maturity, it is agreed and under-
stood (a) that calls of bondswill be applied to each series
of bonds on an equal prorata basis (reflecting the proportion
of the original amount of each series of bonds outstanding
at the time of such call)and (b) that calls of bonds for each
series of bonds will be in accordance with the call provisions
of the respective bond series. However, the City shall have
the right to call, subject to the call provisions of the re-
spective bonds series, any or all outstanding bonds which may
be called at par prior to calling any bonds that are callable
at a premium.
K. 1. The City shall procure fire am extended
coverage insurance on the insurable portions of the project.
Such insurance shall be maintained so long as any of the bonds
are outstanding and shall be in amounts sufficient to provide
for not less than full recovery whenever a loss from perils
insured against does not exceed eighty per centum (80%) of
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the full insurable value of the damaged facility.
In the event of any damagetn or destruction of any
of the facility or facilities of the system, the City shall
promptly arrange for the application of the insurance proceeds
for the repair or reconstruction of the damaged or destroyed
portion thereof.
2. The City shall, procure and maintain, so long as
any of the bonds are outstanding, public liability insurance
with limits of not less than $50,000(£or one person) and $100,000
(for more than one person involved in one accident), to protect
the City from claims for bodily injury and/or death, and of not
less than $10,000, to protect the City from claims for damage
to property, which may arise from the city's operations of the
system.
3. If the City owns or operates a vehicle in the
operation of the system, the City shall procure and maintain,
so long as any of the bonds are outstanding, vehicular public
liability insurance with limits of not less than $50,000 (for
one person) and $100,000 (for more than one person involved
in one accident), protect the City from claims for bodily
injury and/or death, and of not less than $10,000, to protect
the City against claims for damage to property, which may arise
from the city's operations of vehicles.
4. All such insurance shall be carried for the bene-
fit of the holders of the bonds. All moneys received for
losses under any of such insurance, except public liability,
are hereby pledged by the City as security for the bonds herein
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authorized, until and unless such proceeds are used to remedy
the loss or damage for which such proceeds are received, either
by repairing the property damages or replacing the property de-
stroyed, beginning within ninety (901 days from the receipt
of such proceeds.
L. The City covenants to complete the construction
of the project as provided for in this Ordinance in an economi-
cal and efficient manner with all practicable dispatch, and
thereafter will maintain the system in good condition and con-
tinuously operate the same in an efficient manner and at a
reasonable cost.
M. The City will not render or cause to be rendered
any free services of any nature by its system, nor will any
preferential rates be established for users of the same class;
and if the City, including its departments, agencies and in-
strumentalities, shall avail itself of the facilities or ser-
vices provided by the system, or any part thereof, the same
rates, fees or charges applicable to other customers receiving
like services under similar circumstances shall be charged to
the City and any such department, agency or instrumentality.
Such charges shall be paid as they accrue, and the City shall
transfer from its general funds sufficient sums to pay such
charges. The revenues so received shall be deemed to be
revenues derived from the operation of the system, and shall
be deposited and accounted for in the same manner as other
revenues derived from such operation of the system.
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N. upon failure of any user to pay for services
rendered within sixty (60) days, the City shall shut off the
connection of such user and shall not furnish lim or permit him
to receive from the system further service until all obligations
owed by him to the City on account of services shall have been
paid in full. This covenant shall not, however, prevent the
City from causing any system connection to be shut off sooner.
O. The City will diligently enforce and collect the
rates, fees and other charges for the services and facilities
of the system; will take all steps, actions and proceedings
for the enforcement and collection of such rates, charges and
fees as shall become delinquent to the full extent permitted
or authorized by Law; and will maintain accurate records with
respect thereto. All such fees, rates, charges and revenues
herein pledged shall, as collected, be held in trust to be ap-
plied as provided in this Ordinance and not otherwise.
P. Any holder of the bonds or coupons appertaining
thereto, issued under the provisions of this Ordinance, or any
trustee acting for the holders of such bonds, may either at
law or in equity, by suit, action, mandamus or other proceedings
in any Court of competent jurisdiction, protect and enforce any
and all rights, including the right to the appointment of a re-
ceiver, existing under the laws of the State of Florida, or
granted and contained in this ordinance, and may enforce and
compel the performance of all duties required by this ordinance
or by any applicable statutes to be performed by the City or
by any officer thereof.
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Nothing herein, however, shall be construed to grant
to any holder of such bonds any lien on any real property of
the City.
Q. The bonds shall be issued and sold in such
manner and at such price or prices, consistent with tie terms
of this Ordinance, as the City Council shall hereafter deter-
mine by resolution.
R. The City shall also keep books and records of
the net revenues of the system and of theproceeds derived from
the utility tax, which such books and records shall be kept
separate ana apart from all other books, records and accounts
of the City, and any holder of a bond or bonds issued pursuant
to this Ordinance shall have the right at all reasonable times
to inspect all records, accounts and data of the City relating
thereto.
s. T1.1e City shall also, at least once a year, with-
in 60 days after the close of the fiscal year, cause the books,
records and accounts relating to the system and to the pro-
ceeds from the utility tax to be properly audited by a recog-
nixed firm of accountants and shall mail upon request and
make generally available the report of such audits to any
holder or holders of bonds issued pursuant to this Ordinance.
Such audits shall contain a complete reprt of operations of
the system, including, but not limited to, a comparison with
the current municipal budget and with the operations of the
previous years, the balance sheet, a schedule of insurance in
existence, a schedule of the application of all revenues of
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. the system, a schedule of reserves and investments and a certi-
ficate b: the auditors stating no default on the part of the
City of any covenant herein has been disclosed by reason of
such audit. The auditors selected shall be changed at any time
by a written request signed by a majority cf the bondholders or
their duly authorized representatives.
17
SECTION A. No material modification or amendment
of this Ordinance, or of any ordinance amendatory hereof or
supplemental hereto, may be made without the consent in writing
of the holders of two-thirds or more in principal amount of
the bonds then outstanding, provided, however, that no modifi-
cation or amendment shall permit a change in the maturity of
such bonds or a reduction in the rate of interest thereon, or
in the amount of the principal obligation or affecting the
unconditional promise of the City to levy and collect such rates,
fees and charges as herein provided, or to pay the principal
of and interest on the bonds as the same shall become due from
the revenues of the system and the proceeds from the utility
tax, or reduce such percentage of holders of such bonds, re-
quired above, for such modifications or amendments, without
the consent of the holders of all such bonds.
SECTION 7/7. If any one or more of the covenants,
i
agreements or provisions of this Ordinance should be held con-
trary to any express provision of law or contrary to the policy
of express law, though not expressly prohibited, or against
public policy, or shall for any reason whatsoever be held
invalid, then such covenants, agreements or provisions shall
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- be null and void and shall be deemed separate from the remaining covenants,
agreements or provisions of this Ordinance or of the bonds or coupons
issued thereunder.
19
SECTIONJK. Jefferson W. Clark, Esquire, City Attorney of
the City of Edgewater, is hereby authorized and directed to institute
appropriate proceedings in the Circuit Court of the Seventh Judicial Circuit
of Florida, in and for Volusia County, Florida, for the validation of said
bonds; and the proper officers of the City are hereby authorized to verify
on behalf of the City any pleadings in such proceedings.
�G
SECTION,W. This Ordinance shall take effect immediately
upon its passage and approval by the Mayor.
2I
SECTION X. All Ordinances or parts of Ordinances in conflict
herewith be, and the same are hereby repealed.
The above Ordinance was read in full and passed by vote of
the City Council of the City of Edgewater, Florida, at the regular meeting
of said Council held on March 2, 1964.
Upon motion duly made, seconded and carried, the requirement
of reading said Ordinance upon second reading was waived and the Ordinance
was ordered put upon final passage:
Passed by vote of the City Council of the City of Edgewater,
Florida, at the regular meeting of said Council held on the 2nd day of
March, 1964, and approved as provided by law, the vote of said Council
being as follows:
Councilman
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Coun m Z-
tF
Councilman
i�—
� Councilman
Attest:
Approved this 2nd day of March, 1964:
Mayor
— 38
__ s