Ordinance 86-773ORDINANCE N0. ~~a
ANCE OF THE CITY COMMISSION OF T E CITY
OF LONGWOOD, FLORIDA, AUTHORIZING THE CITY OF
LONGWOOD T ISSUE ITS W E
BONDS I THE AGGREGATE PRIIRiC IPALSAMOUNTEOFNO
$3,000,000.00 WBICH BONDS ARE TO BC PURCHASED BY
TIONAL ASSOClnaxoN, 52, s00,0oo a e
PROCEEDS OFAWHICH B E USED FOR T
E OF F ANCINGNT E CONSTRUCTION O
PURPOS IN H F A NEW
6oo,ooB cnccoN P c wnmcA encI LITY A
E CITY'S SKYLARK S
PLANT AND UPTTO $500,000 O£' T PROCEEDS OFMWNZCH
BONDS ARE T EE USED £OR THE P YMENT OF T
CZTY'S E%IST ING INDEBTEDNESS TOEFR£EOOM SAVINGS
NESS WAS
INCURRED IN CONNECTION WITH IMPROVEMENTS TO THE
A STORAGE
FAC ILITIEBEA ANCES N0. 683
ANO 684 OF THEAC ITYRCOMMISSIONDIWHICH P MENT
NAT IONALSASEOCIATIONRATFIASTVAND PRIORALIEN ON
'~ E CITY'S WATER A D SEWER R AB SECURITY
FOR THE BONDS; PROVIDING FORECONFLICTS,
SEPARABILITY AND EFFECTIVE OATS.
WHEREAS, the City of Longwood, Florida, has an immediate
need to construct a new 600,000 gallon pet day waste watec
facility at the site of the City's Skylark Waste Water Treatment
Plant; and
WBER£AS, these improvements have previously been
authorized by the City; and
WHEREAS, Sun Bank, National Association has negotiated
with the City and agreed to purchase up to $3,000,000.00 in
~ aggregate principal amount of the City's water and sewer revenue
bonds, repayable over a twelve (12) year period, together with
interest thereon a[ a fixed rate equal t0 6.65$ per annum for the
f i[st seven ~~~ years and [hereafter at a variable rate per annum
equal to 65k of [he prime rate announced by Sun 9a nks, Inc.,
provided that while the bonds bear interest a[ the variable ra ee
said [ate shall not be less than 5.25k nor greater than 9.0k per
annum, and
WHEREAS, up to $2,500,000 of the proceeds of said bonds
ate to be used for the aEOtesaid improvements and up to $500,000
of the proceeds ace to be used to prepay the existing
indebtedness of the City to Freedom Savings and Loan Assocration
which indebtedness was rncurred to finance repairs and
improvements [o the City's sewage treatment plants and for the
const ructaon of a $J50, OO0 gallon ground water storage tank as
such improvements and cons tructron were authorized by the City
puesuant to Ordinances No. 683 and fi84; and
prior lien on [he water and sewer revenues of the City as
security for the bonds; and
WHEREAS, Sect run 3.10 of the City's Cha rtex requires an
ordinance authorizing the borrow.i ng of money;
NOW, THEREFORE, BE IT ENACT'cD BY THE CITY COMMISSION OF
THE CITY OF LONGWOOD, FLORIDA, AS FOLS,OWS:
N l: The City Commrssron of the City of Longwood
hereby declares that the improvements hereinbeEO[e mentroned
are an rmmediate need to protect the public health safety and
welfare of the residents of the City by preventing any public
health hazard from occurring and will serve a valid public
purpose. The City Commrss run further declares that i< would not
be in the best in[ecests of [he City to delay the required
improvements.
SECTION 2: The Ci[y Commission hereby makes a
determination that it rs xn [he best interest of the City to
prepay that certarn sewage treatme t plant improvement note [n
the original principal amounc of $100,000.00 dated May 20, 1985
and issued in favor of Freedom Savings and Loan Assocration and
[hat cer[arn water system imp rovemen[ note rn the original
principal amount of 5400,000.00 dated May 20, 1985 issued in
favor of Freedom Savings and Loan Assocratron which prepayments
are necessary in order Co provide Sun Bank, National Assocration
a prior and first lien on [he CitY's water and sewer revenues to
secuce the water and sewer revenue bonds to be issued.
SECTION 3: The City Commission hereby makes a
/~ dete[mination that it is vn the best interests of the City, and
to avoid further delay, chat the aforesaid bonds be issued and
sold on a negotiated basis to Sun Bank, Nat tonal A~soccatton a[
and that the aforesaid improvement notes be prepaid ai [he time
the aforesaid bonds are vssued and sold.
SECTION 4: The City Commission hereby authorizes the
Mayo[ to execute any and all documents on behalf of trte City
deemed necessary and propec in order co ass ue artd sell the
aforesaid bonds, including, but not limited to, the prepayme n[ of
the aforesaid improvement notes and a pledge of all or a portion
of the revenues from the City's water and sewe[ facilities as
security for the repayment of the said bonds. The terms and
conditions of such documents and pledge to be as provided in a
[esol ut ion of the Cvty Commission to be approved prior to
tssuance of the bonds.
SECTION 5: All ordinances or pa[cs of ordinances in
conflict herewath are hereby cancelled, annulled, and of no
further force and effect.
SECTION 6: If any section of portion of a sect ton of this
0[di nonce proves to be invalid, unlawful, or uncons[atutional, [t
shall not be held co invalidate o[ impair the validity, force or
_ effect of any other section of this Ordinance.
SECTION ]: This Ordinance shall become effective
vmmediately upon is passage and adoption.
elasT aenDlNC: CJum ,.L `'!, /9~(0
SECOND aEADixc:~~,ns..G/d, ~9PG
PASSED AND ADOPTED THIS /~S DAY OF ~, A.D. 1986
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ATTEST:
r ~ APPEOVF.DA 'TO,i"JFM nNOtEC.\lnY
Cvty Cle[k O.y of LO ooA .an:
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