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20-2174 Authorizing Issuance Of Not To Exceed $1,400,000 in Aggregate Principal Amount of ObligationORDINANCE NO. 20-2174 AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,400,000 IN AGGREGATE PRINCIPAL AMOUNT OF OBLIGATION OF THE CITY OF LONGWOOD, FLORIDA SECURED BY AND PAYABLE FROM THE PLEDGED FUNDS DESCRIBED HEREIN FOR THE PRINCIPAL PURPOSE OF PAYING CERTAIN COSTS RELATED TO THE CITY'S CAPITAL IMPROVEMENT PLAN AND FINANCING CERTAIN COSTS RELATED TO THE ACQUISITION AND INSTALLATION OF EQUIPMENT TO BE LOCATED WITHIN THE CITY AS DESCRIBED HEREIN; PROVIDING FOR THE RIGHTS OF THE HOLDERS OF SUCH OBLIGATION; AND PROVIDING SEVERABILITY AND AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LONGWOOD, FLORIDA, AS FOLLOWS: SECTION 1. DEFINITIONS. When used in this Ordinance, the following terms shall have the following meanings, unless some other meaning is plainly intended: "City" shall mean the City of Longwood, Florida, a municipal corporation established by the State of Florida. "City Charter" shall mean the charter of the City, as the same may be amended from time to time. "City Commission" shall mean the City Commission of the City of Longwood, Florida. "Cost" or "Costs," as the same relates to the Series 2020 Project, shall mean: (1) the cost of physical construction, reconstruction or completion; (2) the cost of acquisition or purchase, installation or equipping; (3) the cost of all labor, materials, machinery and equipment; (4) the cost of land and interests therein; property rights; easements and franchises of any nature whatsoever; (5) the cost of indemnity and surety bonds and premiums for insurance during acquisition, construction, equipping or installation; (6) all interest due to be paid on the Obligation and any other obligation relating to the Series 2020 Project during the period of acquisition, construction, equipping or installation and for such period of time subsequent to completion of acquisition, construction, equipping or installation, as the City Commission deems appropriate; (7) engineering, financial, legal and other consultant fees and expenses; (8) the cost of plans and specifications, construction plans, surveys and estimates of costs; (9) costs and expenses of audits, fees and expenses of any paying agent, registrar, trustee, issuer of a credit facility or a liquidity facility, insurance company or depository; (10) payments, when due (whether at the maturity of principal or the due date of interest or upon redemption) on any interim or temporary indebtedness incurred for any portion of the Series 2020 Project; (11) costs Ordinance No. 20-2174 Page 1 of 7 and expenses related to the issuance of the Obligation or other indebtedness related to the Series 2020 Project; (12) costs related to collection of special assessments, if any; and (13) any other costs and expenses properly attributable to acquisition, construction, equipping or installation of the Series 2020 Project, and such other expenses as may be necessary or incidental to the issuance of the Obligation; and shall include reimbursement to the City or any other person, firm or corporation for any moneys advanced for any costs incurred by the City or such person, firm or corporation in connection with any such items or costs. The Resolution may provide for additional items to be included in the aforesaid Costs. "Non -Ad Valorem Revenues" means all legally available revenues of the City derived from any source whatsoever other than special assessments and ad -valorem taxation on real and personal property, which are legally available to make the payments required herein, but only after provision has been made by the City for the payment of services and programs which are for essential public purposes affecting the health, welfare and safety of the inhabitants of the City or which are legally mandated by applicable law. "Obligation" shall mean the bond, note or other evidence of indebtedness issued by the City pursuant to the authority of this Ordinance and more particularly described and determined by the Resolution. "Ordinance" shall mean this Ordinance enacted by the City Commission on the date hereof, as it may be amended and supplemented from time to time. "Pledged Funds" shall mean (1) the Non -Ad Valorem Revenues which have been budgeted and appropriated by the City in its annual budget for payment of the Obligation as described in Section 5 hereof and in the Resolution, and (2) until applied in accordance with the provisions of the Resolution, all moneys, including investments thereof, in the funds and accounts established under the Resolution for the benefit of the Obligation except for any rebate account or fund. "Resolution" shall mean the resolution or resolutions of the City Commission detailing the term, forms and other provisions of the Obligation, including the repayment source and security for the Obligation and various covenants and restrictions relating to the security of the Obligation. "Series 2020 Project" shall mean, collectively, the acquisition and installation of equipment within the City including, but not limited to, fencing, information technology hardware and software, patrol vehicles, patrol motorcycles, police equipment and weapons, vehicle and personnel camera systems, utility vehicles, lawn maintenance equipment, fire protection vehicles and equipment, medical equipment for first responders and other related equipment needs for the City, all as more particularly described in the plans and specifications on file or to be on file with the City, as the same may be modified or amended from time to time. The words "herein," "hereunder," "hereby," "hereto," "hereof," and any similar terms shall refer to this Ordinance. Ordinance No. 20-2174 Page 2 of 7 Words importing the singular number include the plural number, and vice versa. SECTION 2. FINDINGS. The City Commission hereby finds and determines that: (A) The City has various capital needs and requirements in the form of the Series 2020 Project which must be acquired, constructed, equipped and installed in order to provide for the general governmental purposes of the City including, but not limited to, the recreation, heath, safety and welfare of the citizens of the City. (B) The most efficient and cost-effective method of financing the acquisition, construction, equipping and installation of the Series 2020 Project is by the issuance of the Obligation secured by the Pledged Funds as provided herein and in the Resolution. (C) The Series 2020 Project consists of a capital improvement project for which the City has solicited and awarded a construction contract and various equipment to be acquired by the City and as such will constitute both a capital improvement project and assets, respectively, for purposes of the limitations set forth in Section 6.10(b) of the City Charter relating to the issuance of indebtedness. (D) Since the principal amount of the Obligation is not expected to exceed the $3,000,000 threshold set forth in the City Charter, the approval of at least three (3) city commissioners must be obtained. (E) The principal of, redemption premium, if any, and interest on the Obligation shall be paid from the Pledged Funds. The City shall never use or be required to use its ad valorem taxing power for the payment of the Obligation. The Obligation shall not constitute a general obligation of the City or a pledge of its faith and credit, nor shall the holder of the Obligation have any lien or encumbrance on any property in the City except the Pledged Funds. (F) The adoption of this Ordinance shall constitute the City Commission's approval of the issuance of debt and the borrowing of money in accordance with Sections 3.10 and 6.10(b) of the City Charter. SECTION 3. AUTHORIZING THE FINANCING OF THE SERIES 2020 PROJECT. The City Commission hereby authorizes the acquisition, construction, equipping and installation of the Series 2020 Project. SECTION 4. ISSUANCE OF THE OBLIGATION. The Obligation is hereby authorized to be issued in an aggregate principal amount of not exceeding $1,400,000. The Obligation may be issued in one or more series. The particular title and designation of the Obligation may be made by a Resolution. The Obligation shall be issued for the principal purposes of (A) paying all or a portion of the Costs of the Series 2020 Project, and (B) paying costs and expenses of issuing the Obligation. The principal of, redemption premium, if any, and interest on the Obligation shall be payable from the Pledged Funds, as provided herein and in the Resolution. Ordinance No. 20-2174 Page 3 of 7 The Obligation shall be dated such date or dates, shall bear interest at such rate or rates, shall mature at such time or times and in such amount or amounts as may be determined by the Resolution, and may be 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 Resolution. The City Commission shall determine by the Resolution the form of the Obligation, the manner of executing the Obligation, and shall fix the denomination or denominations of such Obligation, the place or places and dates of payment of the principal and interest, and such other terms and provisions of the Obligation as it deems appropriate. The Obligation may be issued as capital appreciation debt, current interest paying debt, variable rate debt, serial debt, term debt, taxable debt, tax-exempt debt or any combination thereof, as shall be determined by the Resolution. In case any officer whose signature or a facsimile of whose signature shall appear on any Obligation shall cease to be such officer before delivery of such Obligation, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he or she had remained in office until such delivery. The City Commission may sell the Obligation in such manner and for such price as it may determine by the Resolution to be in the best interests of the City. The Obligation may be further secured by any credit enhancement as the City Commission by the Resolution deems appropriate. The Obligation may be issued without any other proceedings or the happening of any other conditions or other things other than those proceedings, conditions or things which are specifically required by this Ordinance. The proceeds of the Obligation shall be disbursed in such manner and under such restrictions, if any, as may be provided by the Resolution. The Obligation shall be further secured by the Resolution which may include, but without limitation, provisions as to the rights and remedies of the holders of the Obligation, the application of funds and such other matters as are customarily in such an instrument. The Resolution may provide for the City entering into one or more loan agreements with the purchaser(s) of the Obligation. SECTION 5. COVENANT TO BUDGET AND APPROPRIATE. Subject to the next paragraph below, the City shall covenant and agree pursuant to the Resolution to appropriate in its annual budget, by amendment, if necessary, from Non -Ad Valorem Revenues legally available in each fiscal year, amounts sufficient to pay the principal of, redemption premium, if any, and interest on the Obligation when due each fiscal year. Such covenant and agreement on the part of the City to budget and appropriate such amounts of Non -Ad Valorem Revenues, if any, shall be cumulative to the extent not paid, and shall continue until such Non -Ad Valorem Revenues or other legally available funds in amounts sufficient to make all such required payments shall have been budgeted, appropriated and actually paid. Notwithstanding the foregoing, the City shall not covenant to maintain any services or programs, now provided or maintained by the City, which generate Non -Ad Valorem Revenues. Such covenant to budget and appropriate shall not create any lien upon or pledge of such Non -Ad Valorem Revenues, nor shall it preclude the City from pledging in the future its Non -Ad Ordinance No. 20-2174 Page 4 of 7 Valorem Revenues, nor shall it require the City to levy and collect any particular Non -Ad Valorem Revenues, nor shall it give the holders of the Obligation a prior claim on the Non -Ad Valorem Revenues as opposed to claims of general creditors of the City. Such covenant to appropriate Non -Ad Valorem Revenues shall be subject in all respects to the payment of obligations secured by a pledge of such Non -Ad Valorem Revenues heretofore or hereafter entered into (including the payment of debt service on bonds and other debt instruments). However, the covenant to budget and appropriate in its general annual budget for the purposes and in the manner stated herein and in such Resolution shall have the effect of making available for the payment of the Obligation, in the manner described herein and in such Resolution, Non -Ad Valorem Revenues and placing on the City a positive duty to appropriate and budget, by amendment, if necessary amounts sufficient to meet its obligations hereunder and thereunder; subject, however, in all respects to the restrictions of Section 166.241, Florida Statutes, which provides, in part, that the governing body of each municipality make appropriations for each fiscal year which, in any one year, shall not exceed the amount to be received from taxation or other revenue sources; and subject, further, to the payment of services and programs which are for essential public purposes affecting the health, safety and welfare of the inhabitants of the City or which are legally mandated by applicable law. SECTION 6. TAXING POWER NOT PLEDGED. The Obligation issued under the provisions of this Ordinance shall not be deemed to constitute a pledge of the faith and credit or taxing power of the City, but the Obligation shall be payable from the Pledged Funds in the manner provided herein and in the Resolution, unless otherwise paid by such entity as shall provide credit enhancement on the Obligation, if any. The issuance of the Obligation under the provisions of this Ordinance shall not directly, indirectly or contingently obligate the City to levy or to pledge any form of ad valorem taxation whatsoever. The holders of the Obligation shall never have the right to compel any exercise of the ad valorem taxing power on the part of the City to pay any of the Obligation or the interest thereon against any property of the City, nor shall the Obligation constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the Pledged Funds. SECTION 7. TRUST FUNDS. All moneys received pursuant to the authority of this Ordinance, whether as proceeds from the sale of the Obligation or the Pledged Funds, shall be deemed to be trust funds, to be held and applied solely as provided in this Ordinance and in the Resolution. The Pledged Funds upon receipt thereof by the City, shall be subject to the lien and pledge of the holders of the Obligation or any entity providing credit enhancement for the Obligation. SECTION 8. REMEDIES OF HOLDERS OF THE OBLIGATION. The holders of the Obligation, except to the extent the rights herein given may be restricted by the Resolution, may, whether at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce and compel the performance of all duties required hereby, or by such Resolution, to be performed by the City. Ordinance No. 20-2174 Page 5 of 7 SECTION 9. ALTERNATIVE METHOD. This Ordinance shall be deemed to provide an additional and alternative method for the doing of 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, safety and welfare of the inhabitants and/or property owners of the City, shall be liberally construed to effect the purposes hereof. SECTION 10. VALIDATION. To the extent deemed necessary by Bond Counsel, Nabors, Giblin & Nickerson, P.A., or desirable by the City Attorney, the City Attorney is authorized to institute appropriate proceedings for validation of the Obligation pursuant to Chapter 75, Florida Statutes. SECTION 11. GENERAL AUTHORITY. The members of the City Commission of the City and the officers, attorneys and other agents or employees of the City are hereby authorized to do all acts and things required of them by this Ordinance, or desirable or consistent with the requirements hereof for the full punctual and complete performance of all the terms, covenants and agreements contained herein. SECTION 12. SEVERABILITY. In the event that any portion or section of this Ordinance is determined to be invalid, illegal or unconstitutional by a court of competent jurisdiction, such decision shall in no manner affect the remaining portions or sections of this Ordinance which shall remain in full force and effect. SECTION 13. EFFECTIVE DATE. This Ordinance shall take effect immediately upon its enactment by the City Commission of the City of Longwood, Florida by a vote of at least 3 of the S City Commissioners voting in favor of adoption. READ BY TITLE ONLY IN PUBLIC SESSION the 16th day of March, 2020. DULY ENACTED ON THE SECOND AND FINAL READING IN PUBLIC SESSION this 6th day of April, 2020. ATTEST: Michelle on , C RM,City Clerk CITY OF LONGWOOD, FLORIDA Matt Morgan, Mayor Ordinance No. 20-2174 Page 6 of 7 APPROVED AS TO FORM AND LEGALITY FOR THE USE AND RELIANCE OF THE CITY OF LONGWOOD, FLORIDA ONLY: J Daniel W. La I it torney Ordinance No. 20-2174 Page 7 of 7