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HomeMy Public PortalAboutRES 77/01RESOLUTION NO, 77_1 A RESOLUTION PROVIDING FOR THE ISSUANCE BY THE TOWN OF GULFSTREAM, FLORIDA, OF A TAX ANTICIPATION NOTE IN THE AMOUNT OF $180,000.00 DUE AND PAYABLE TO ADVANCE FUNDS FOR THE COST OF LAYING WATER LINES AND TO MAKE CERTAIN OTHER IMPROVEMENTS NECESSARY TO EXTEND AND IMPROVE THE WATER WORKS SYSTEM OF THE TOWN; CONTAINING OTHER PROVISIONS RELATING TO SUCH NOTE; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF GULFSTREAM, FLORIDA: Section 1. AUTHORITY FOR THIS RESOLUTION. This Resolution is adopted pursuant to the provisions of the Charter of the Town of Gulfstream and other applicable provisions of law. Section 2. FINDINGS. It is hereby found,determined and declared as follows, that: a. The Town of Gulfstream, (the "Issuer") is obligated to extend and improve its water system and to lay water lines and make certain other improvements incidental thereto. b. Although it is contemplated that the cost of the project will be financed on a long-term basis by other methods, i.e., by the issuance of water revenue bonds, which may be pursuant to the existing Charter of the Issuer or pursuant to other lawful authority, it is immediately necessary, in order to accommodate the present plans and schedules of the Issuer, that the $180,000.00 be made immediately available for such purpose. C. It is, therefore, necessary to issue a short term note in the amount of $180,000.00 in order to immediately receive funds in anticipation of the receipt of the proceeds of such long- term financing, and it is necessary to pledge the taxing power of the Issuer for the fiscal year 1977-78 and other revenue sources described herein as security for said Note. Section 3. RESOLUTION TO CONSTITUTE CONTRACT. In consideration of the acceptance of the Note authorized to be issued hereunder by the Barnett Bank of Delray Beach, the holder, this Resolution shall be deemed to be and shall constitute a cont between the Issuer and the holder. The covenants and agreements herein set forth to be performed by the Issuer shall be for the equal benefit, protection and security of the legal holder of such Note. Section 4. AUTHORITY OF ISSUANCE OF SHORT TERM NOTES. For the purpose of financing the cost of the Project there is hereby authorized to be issued a Tax Anticipation Note of the Issuer in the aggregate principal amount of not exceeding One Hundred Eighty Thousand Dollars ($180,000.00). The Note shall be dated as of its date of delivery, but not earlier than May 1977, shall be payable to bearer, shall be payable in lawful money of the United States of America, shall mature on May and shall bear interest from date payable at maturity. The Note shall be issued in the amount of $180,000.00, shall bear interest at such rate or rates, not exceeding the maximum rate permitted by law, as is hereinafter specified and shall be payable with respect to both principal and interest at the Barnett Bank of Delray Beach. Section 5. SALE OF NOTE. The Note is hereby sold and awarded to Barnett Bank of Delray Beach, at the price of $180,000. and shall bear interest at the rate of 4.51% per annum. Section 6. EXECUTION OF NOTES. The Notes shall be executed in the name of the Issuer by the Mayor and countersigned and attested by the Town Clerk and the corporate seal of the Issuer shall be affixed thereto. The Notes may be signed and sealed on behalf of the Issuer by such person who at the actual time of the execution of such Notes shall hold the proper office in the Issuer. Section 7. FORM OF NOTE. The text of the Note shall be in substantially the following form and tenor, with such variations omissions and insertions as may be necessary, desirable and authorized or permitted by this Resolution or any subsequent resolution adopted prior to the issuance thereof: Section 8. PLEDGE OF FUNDS For the prompt payment of the principal of and interest on the Note, the ad valorem taxing power of the Issuer for the fiscal year 1977-78, to be levied and assessed, at an annual rate not to exceed ten (10) mills on the dollar of assessed value, is irrevocably pledged. The principal of and interest on the Note are additionally secured by and payable from a lien on and pledge of the proceeds of the franchise taxes and the utilities services taxes levied and collected in the Town. Section 9. LEVY OF AD VALOREM TAX; COVENANT TO BUDGET EXCISE TAXES. (a) There shall be levied and collected a tax during the fiscal year 1977-78, to be levied and assessed at an annual rate not to exceed ten (10) mills on the dollar of assessed value, on all property subject to taxation by the Town, to the extent necessary to pay the principal of and interest on such Notes as the same shall become due, after deducting therefrom any other funds which may be available for such principal and interest payments and which may be so applied. (b) The Town, in preparing, approving and adopting its budget controlling or providing for the expenditure of its funds for the fiscal year 1977-78, will appropriate, allot and approve, from the proceeds of the Excise Taxes, amounts sufficient, as necessary, to pay the principal of and interest on the Notes as the same shall become due, after deducting therefrom any other funds which may be available for such payments and which may be so applied. PROCEEDS. Section 10. NOTEHOLDERS NOT AFFECTED BY USE OF NOTE The holders of the Note issued hereunder shall have no responsibility for the use of the proceeds of said Note, and the use of such Note proceeds by the Town shall in no way affect the rights of such Noteholder. Section 11. MODIFICATION OR AMENDMENT. No material modification or amendment of this Resolution or of any resolution amendatory hereof or supplemental hereto, may be made without the consent in writing of the noteholder. Section 12. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the covenants, agreements or provisions of this Resolution should be held contrary 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 be null and void and shall be deemed separate from the remaining covenants, agreements or provisions, and in no way affect the validity of all the other provisions of this Resolution or of the Note issued thereunder. Section 13. PRIOR RESOLUTIONS REPEALED. All prior resolutions inconsistent with this Resolution, are repealed. Section 14. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED ON 1st READING THIS 13th DAY OF MAY , A.D., 1977. ATTEST: