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Home My WebLink AboutResolution_03-75/76_12/23/1975 RESOLUTION NO. 3-7� ?6 A RESOLUTION PROVIDING FOR THE ACQUISITION AND CONSTRUCTION OF ADDITIONS, EXTENSIONS, AND IMPROVEMENTS TO THE WATER SYSTEM OF THE VILLAGE OF TEQUESTA, FLORIDA; PROVIDING FOR THE ISSUANCE OF NOT EXCEEDING $365,000 WATER REVENUE CERTI- FICATES, SERIES 1975, TO PAY THE COST OF SUCH PROJECT; PROVIDING FOR THE RIGHTS OF THE HOLDERS OF SUCH CERTIFICATES; PROVIDING FOR THE PAYMENT THEREOF; AND MAKING CERTAIN OTHER- COVENANTS AND AGREEMENTS IN CONNECTION WITH THE ISSUANCE OF SUCH CERTIFICATES. BE IT RESOLVED BY THE VILLAGE COUNCIL OF TEQUESTA, FLORIDA: SECTION 1. AUTHORITY FOR THIS RESOLUTION. This Resolution is adopted pursuant to the provisions of Chapter 166, Florida Statutes, as amended and supplemented, and other applicable provisions of law. SECTION 2. DEFINITIONS. The following terms shall have the following meanings herein, unless the text otherwise expressly requires: A. "Issuer" shall mean the Village of Tequesta, Florida. B. "`Act" shall mean Chapter 166, Florida Statutes, as amended and supplemented. C. "Obligations" shall mean the $365,000 dater Revenue Certificates, Series 1975, herein authorized to be issued, together with any additional parity obligations heretofore or hereafter issued under the terms, conditions and limitations contained herein. D. "Holder of obligations" or "obligation holders " or any similar term shall mean any person who shall be the bearer or owner of any outstanding obligation or obligations registered to bearer, or not registered or the registered owner of any such obligation or obligations which shall at the time be registered other than to bearer. E. "Additional parity obligations" shall mean additional obligations issued in compliance with the terms, conditions and limitations contained herein which have an equal lien on the net revenues, as herein defined, and rank equally in all respects with such obligations initially issued hereunder. F. "Facilities" shall mean the complete Water System now owned, operated and maintained by the Issuer, together with any and all improvements, extensions and additions thereto hereafter con- structed or acquired. G. "Gross revenues" or "revenues" shall mean all income or earnings, including any income from the investment of funds unless otherwise provided herein, derived by the Issuer from the operation of the facilities. H. "Cost of operation and :aintenance" of the facilities shall mean'the current expenses, paid or accrued, of operation, maintenance and repair of the facilities, as calculated in accordance with sound accounting practice, but shall not include any reserves for renewals and replacements, extraordinary repairs or any allowance for renewal, replacements and depreciation. I. "Net revenues" of the facilities shall mean the revenues • or gross revenues, as defined in Subsection G above, after deduction of the cost of operation and maintenance, as defined in Subsection H above. J. "Investment Income" shall mean the income derived from investment of moneys on hand in the Sinking Fund and the Reserve Account therein. .K. "Pledged Funds" shall clean the net revenues and the invest- ment income, as herein defined. L. "Consulting engineers" shall mean such qualified and recognized consulting engineers, raving a favorable repute for skill and experience in the construction and operation of such facilities, at the time retained by the Issuer to perform the acts and carry • out the duties as herein provided =or such consulting engineers. M. "Outstanding 1967 Certificates" shall mean the outstanding Water Revenue Certificates of the Issuer dated July 1, 1967, issued originally in the amount of $1,700,000 as authorized'by Ordinance No. 138 enacted by the governing body of the Issuer on November - 21, 1967, as amended and supplemented (the. "1967 Ordinance "). N. "Annual Debt Service Requirement" in any fiscal year shall mean the sum of: -2- • (1) The amount required to pay the interest becoming due on obligations to which the debt service requirement relates during the fiscal year; and (2) The amount required to pay the principal of serial obligations maturing during the fiscal year, and (3) with respect to the Outstanding 1967 Certificates, the' amount of amortization installments for term obligations required to be deposited into the Certificate Redemption Fund during the fiscal year pursuant to Section 3.03D(6) of the 1967 Ordinance. O. "Fiscal year" shall mean the period commencing on October I of ead h year and ending on the succeeding September 30. - - -- P. "Authorized Investments" shall mean direct obligations of the United States of America, obligations of its several agencies • which are unconditionally guaranteed by the United States of America, or time deposits in banks or trust companies represented by certifi- cates of deposit fully secured in the same manner as city deposits are required to be secured under the laws of Florida. Q. Words importing singular numbers shall include plural number in each case and vice versa, and words importing persons shall include firms and corporations. SECTION 3. FINDINGS. It is hereby ascertained, determined and declared that: A. The Issuer now owns, operates and maintains the facilities and derives revenues from rates, fees, rentals and other charges made and collected for the services of the facilities. • B. It is necessary and desirable to acquire and construct additions, extensions and improvements to the facilities, as provided herein, consisting of the relocation of existing waterlines to accommodate the widening of U.S. Highway 1 (hereinafter called "Project" in order to preserve and protect the public health, safety and welfare of the inhabitants of the Issuer. C. The net revenues derived from the operation of the facilities are not now pledged or encumbered in any manner except for the payment of the principal of and interest on the Outstanding 1967 Certificates. -3- • D. The estimated net revenues to be derived from the operation of the facilities will be sufficient to pay all the principal and interest on the Outstanding 1967 Certificates and, together with the investment income, on the obligations to be issued hereunder, as the same become due, and to make all required sinking fund, reserve or other payments. E. The principal of and interest on the obligations and all required sinking fund, reserve and other payments shall be payable solely from the pledged funds as herein provided, subject only to the requirements for payment of the Outstanding 1967 Certificates. The Issuer shall never be required to levy ad valorem taxes on any _. property therein to pay the principal of and interest on the obligatio or to make any of the required sinking fund, reserve or other payments and such obligations shall not constitute a lien upon any property of or in the Issuer. SECTION 4. AUTHORIZATION OF CONSTRUCTION AND ACQUISITION OF PROJECT. There is hereby authorized the construction and acquisition of the project pursuant to the recommendations of the consulting engineers, presently on file with the Issuer. The cost of such project, in addition to the items set forth in the plans and specifi- cations, may include, but need not be limited to, the acquisition of any lands or interest therein or any other properties deemed necessary or convenient therefor; engineering, legal and financing expenses; expenses for estimates of costs and of revenues; expenses for plans, specifications an surveys; the fees of fiscal agents, financial advisor • or consultants; administrative expenses relating solely to the con- struction and acquisition of the project; the capitalization of interest for a reasonable period after the issuance of the obligations; the creation and establishment of reasonable reserves for debt service; the discount on the sale of the obligations, if applicable; repayment of advances made by the Issuer for any such costs, and such other costs and expenses as may be necessary or incidental to the financing herein authorized and the construction and acquisition of the project and the placing of same in operation. -4- • SECTION 5. RESOLUTION TO CONSTITUTE CONTRACT. In consideration of the acceptance of the obligations authorized to be issued hereunder by those who shall hold the same from time to time this Resolution shall be deemed to be and shall constitute a contract between the Issuer and such holders. 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 holders of any and all of such obligations and the coupons attached thereto, all of which shall be of equal rank and without preference, priority or distinction of any of the obligations or coupons over any other thereof, except as expressly provided herein. SECTION 6. AUTHORIZATION OF OBLIGATIONS. Subject and pursuant to the provisions hereof, obligations of the Issuer to be known as "Water Revenue Certificates, Series 1975" herein sometimes referred to as "obligations" are authorized to be issued in the aggregate principal amount of not exceeding Three Hundred Sixty -Five Thousand Dollars ($365,000). SECTION 7. DESCRIPTION OF OBLIGATIONS. The obligations shall be dated January 1, 1976; shall be numbered consecutively.from.one upward within each lot; shall be in the denomination of $5,000 each; shall bear interest at such rate or rates not exceeding the maximum rate fixed by the Act or by other applicable law; such interest to be payable semi- annually January 1 and July 1 of each year; and shall mature in numerical order, on January 1 in such years, but not later than 2005, and amounts as are fixed by subsequent resolution or resolu- tions of the Issuer prior to sale of the obligations or each lot thereof Such obligations shall be issued in coupon form; shall be payable to bearer unless registered as hereinafter provided; shall be payable with respect to both principal and interest at a bank'.or banks to -5- r be subsequently determined by the Issuer prior to the delivery of the obligations; shall be payable in lawful money of the United States of America; and shall bear interest from their date, payable in accordance with and upon surrender of the appurtenant interest coupons as they severally mature. SECTION 8. EXECUTION OF OBLIGATIONS AND COUPONS. The obligations shall be executed in the name of the Issuer by the Mayor and counter- signed and attested by the Village Clerk, and its corporate seal or a facsimile thereof shall be affixed thereto or reproduced thereon. The facsimile signatures of the Mayor or the Village Clerk may be imprinted or reproduced on the obligations, provided that at least one signature required to be placed thereon shall be manually sub- scribed. In case any officer whose signature shall appear on any of the obligations shall cease to be such officer before the delivery of such obligations, such signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. The obligations may be signed and sealed on behalf of the Issuer by such person who at the actual time of the execution of such obligations shall hold the proper office with the Issuer, although at the date of such obligations such person may not have held such office or may not have been so authorized. The coupons attached to the obligations shall be authenticated with the facsimile signatures of any present or future Mayor and Vi.11a. Clerk of the Issuer, and the validation certificate on the obligations shall be executed with the facsimile signature of the Mayor. The Issuer may adopt and use for such purposes the facsimile signatures. of any persons who shall have held such offices at-any .time on or after the date of the obligations notwithstanding that they may have ceased to be such officers at the time such obligations shall be actually delivered. SECTION 9. NEGOTIABILITY AND REGISTRATION. The obligations and the coupons appertaining thereto shall be and shall have all of the qualities and incidents of negotiable instruments.under the law -6- 1 • merchant and the laws of the State of Florida, and each successive holder, in accepting any of such obligations or the coupons apper- taining thereto, shall be conclusively deemed to have agreed that such obligations shall be and have all of the qualities and incidents of negotiable instruments under the law merchant and the laws of the State of Florida. The obligations may be registered at the option of the holder as to principal only at the office of the Village Clerk, as Registrar, or such other Registrar as may be hereafter duly appointed, such registration to be noted on the back of the obligations in the space provided therefor. After such registration as to principal only, no transfer of the obligations shall be valid unless made at such office • by written assignment of the registered owner, or by his duly author- ized attorney in a form satisfactory to the Registrar, and similarly noted on the obligations, but the obligations may be discharged from registration by being in like manner transferred to bearer and thereupon transferability by delivery shall be restored. At the option of the holder, the obligations 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 negotiability of the coupons which shall continue to pass by delivery. SECTION 10. OBLIGATIONS MUTILATED, DESTROYED, STOLEN OR LOST. In case any obligation shall become mutilated or be destroyed, stolen or lost, the Issuer may in its discretion issue and deliver a new obligation with all unmatured coupons attached, if any, of like tenor as the obligation and attached coupons, if any, so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated obliga- tion, upon surrender and cancellation of such mutilated obligation and attached coupons, if any, or in lieu of and substitution for the obligation and attached coupons, if any, destroyed, stolen or lost, and upon the holder furnishing.the Issuer proof of his ownership thereof and satisfactory indemnity and complying with such other reasonable regulations and conditions as the.Issuer may prescribe -7- and paying such expenses as the Issuer may incur. All obligations and coupons so surrendered shall be cancelled. If any such obligation or coupon shall have matured or be about to mature, instead of issuing a substitute obligation or coupon, the Issuer may pay the same, upon being indemnified as aforesaid, and if such obligation or coupon be lost, stolen or destroyed, without surrender thereof. All such duplicate obligations and coupons issued pursuant to this section shall constitute original, additional contractual obliga- tions on the part of the Issuer whether or not the lost, stolen or destroyed obligations or coupons be at any time found by anyone, and sA _ any such duplicate,obligations and coupons shall be entitled to equal and proportionate benefits and rights as to lien on and source and security for payment from the funds, as hereinafter pledged, to the same extent as all other obligations and coupons issued hereunder. SECTION 11. PROVISIONS FOR REDEMPTION. The obligations shall be redeemable prior to maturity as may be provided by subsequent resolution of the Issuer adopted prior to sale of the obligations. Notice of such redemption (i) shall be published at least thirty (30) days prior to the redemption date in a financial journal publishes in the Borough of Manhattan, City and State of New York, (ii) shall be filed with the paying agents, and (iii) shall be mailed, postage prepaid, to all registered owners of obligations to be redeemed at their addresses as they appear on the registration books hereinbefore provided for. Interest shall cease to accrue on any obligation duly called for prior redemption on the redemption date, if payment thereof - • has been duly provided. SECTION 12. FORM OF OBLIATIONS AND COUPONS. The the interest coupons to be attached thereto, and the certificate of validation shall be in substantially the following form, with such omissions, insertions and variations as may be necessary and desirable and which are herein authorized or permitted or which are subsequently authorized or permitted - prior to the issuance of the obligations: -8- No. $5,000 UNITED STATES OF AiMERICA STATE OF FLORIDA COUNTY OF PALM BEACH VILLAGE OF TEQUESTA WATER REVENUE CERTIFICATE, SERIES 1975 KNOW ALL MEN BY THESE PRESENTS, that the Village of Tequesta, Florida (hereinafter called "Village "), for value received, hereby promises to pay to-the bearer, or if this certificate be registered, to the registered holder as herein provided on the first day of January, 19 from the special funds hereinafter mentioned, the principal sum of _ FIVE THOUSAND DOLLARS and to pay solely from such special funds, interest thereon from the date hereof at the rate of per centum ( %) per annum until payment of the principal sum, such interest to the maturity hereof being payable semi - annually, on the first day of January and the first day of July in each year upon the presentation and surrender of the annexed coupons as they severally fall due. Both principal of and interest on this certifi- cate are payable in lawful money of the United States of America at or at the option of the holder at This certificate is one of an authorized issue of certificates in the aggregate principal amount of $365,000 of like date, tenor and effect, except as to number, lot (if issued in installments), interest rate and date of maturity, issued to finance the cost of • relocating of existing water lines to accommodate the widening of U.S. Highway 1, such lines being a part of the water system of the Village (hereinafter called "facilities "), under the authority of and in full compliance with the Constitution and Statutes of the State of Florida, including particularly Chapter 166, Florida Statutes, as amended and supplemented, and other applicable provisions of law, and a resolu- tion duly enacted by the Village on the day of , 19 as supplemented (hereinafter called "Resolution "), and is subject to all the terms and conditions of such Resolution. -9- This certificate and the coupons appertaining thereto are payable solely from and secured by a prior lien upon and pledge of the net revenues derived by the Village from the operation of the facilities and of the investment income derived from the investment of moneys on hand in the Sinking Fund and the Reserve Account therein, in the manner provided in the Resolution. The lien of the holders of the certificates of the issue of which this certificate is one on the above - described net revenues is junior and subordinate in all respects as to the lien on and source and security for payment from such revenues to the lien thereon of the holders of the outstanding Water Revenue Certificates of the Village, dated July 1, 1967 (the Outstanding 1967 Certificates "). (Insert Redemption Provisions) • Notice of such redemption shall be given in the manner required by the Resolution. This certificate does not constitute an indebtedness of the Vill`-- within the meaning of any constitutional or statutory provision or limitation, and it is expressly agreed by the holder of this certifi- cate and the coupons appertaining thereto that such holder shall never have the right to require or compel the exercise of the ad valorem taxing power of the Village for the payment of the principal of and interest on this certificate or the making of any sinking fund, reser. or other payments provided for in the Resolution. It is further agreed between the Village and the holder of this certificate that this certificate and the obligation evidenced thereb_ shall not constitute a lien upon the facilities, or any part thereof, or on any other property of or in the Village, but shall constitute a lien only on the net revenues derived from the operation of the facilities and on the investment income in the manner provided in the Resolution. The Village in the Resolution has covenanted and agreed with the holders of the certificates of this issue to fix, establish and maintain such rates and collect such fees, rentals or other charges -10- for the services of the facilities and to revise the same from time to time whenever necessary, as will always provide revenues in each year sufficient to pay (i) all costs of operation and maintenance of the facilities in such year, (ii) effective on October 1, 1976, for the 1976 -77 fiscal year, 115% of the maximum Annual Debt Service Requirement (as defined in the Resolution) coming due in any ensuing fiscal year on the Outstanding 1967 Certificates, the certificates of this issue, and any additional parity obligations then outstanding; (iii) effective on October 1, 1977, for the 1977 -78 fiscal year, 120% of such maximum Annual Debt Service Requirement; (iv) effective on -- October 1, 1978, for the 1978 -79 fiscal year and thereafter, 125% of such maximum Annual Debt Service Requirement, and (v) in all years, 100% • of all reserve and other payments provided for in such Resolution and in the ordinance authorizing the Outstanding 1967 Certificates and that such rates, fees, rentals or other charges shall not be reduced so as to be insufficient to provide adequate revenues for such purposes; and the Village has entered into certain further covenants with the holders of the certificates of this issue for the terms of which reference is made to.the Resolution. 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 certificate, exist, have happened and have been performed in regular and due form and time as required by the laws and Constitution of the State of Florida applicable thereto, and that the issuance of the certificates of this issue does not, violate any constitutional or statutory limitation or provision. This certificate and the coupons appertaining thereto are and have all the qualities and incidents of a negotiable instrument under the law merchant and laws of the State of Florida. This certificate may be registered as to principal only in accordance with the provisions endorsed hereon. IN WITNESS WHEREOF, the Village of Tequesta, Florida, has issued this certificate and has caused the same to be signed by its Mayor -11- 1 and attested and countersigned by its Village Clerk, either manually or with their facsimile signatures, and the corporate seal of said Village or a facsimile thereof to be affixed, impressed, imprinted, lithographed or reproduced hereon and the interest coupons hereto attached to be executed with the facsimile signatures of such officers all as of the first day of January, 1976. VILLAGE OF TEQUESTA, FLORIDA (SEAL) By Mayor ATTESTED AND COUNTERSIGNED: Village Clerk FORM OF COUPON No. $ On the first day of 19 , unless the certificate to which this coupon is attached is callable and has been duly called for prior redemption and provision duly made for the payment thereof, the Village of Tequesta, Florida, will pay to the bearer at or at the option of the holder, at from special funds described in the certifi- cate to which this coupon is attached, the amount shown hereon in lawful money of the United States of America, upon presentation and surrender of this coupon, being six months' interest then due on its Water Revenue Certificates, Series 1975, dated.January' 1, 1976, No. VILLAGE OF TEQUESTA, FLORIDA ( SEAL) By Mayor ATTESTED AND COUNTERSIGNED: Village Clerk VALIDATION CERTIFICATE This certificate is one of the series of certificates which were -12- w validated and confirmed by judgment of the Circuit Court for Palm Beach County, Florida rendered on the day of , 19 + Mayor PROVISION FOR REGISTRATION This certificate may be registered as to principal only in the name of the holder on the books to be kept by the Village Clerk as Registrar, or such other Registrar as may be hereafter duly appointed, such registration being noted hereon*by such Registrar in the regis- tration blank below, after which no transfer shall be valid unless made by written assignment 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 registration by being trans- ferred to bearer, after which it shall be transferable by- delivery, but it may be again registered as before. Such registration shall not restrain the negotiability of the coupons by delivery. DATE OF IN WHOSE NAME SIGNATURE OF REGISTRATION REGISTERED REGISTRAR -13- SECTION 13. PLEDGE OF NET REVENUES. The payment of the principal of and the interest on the obligations shall be secured forthwith equally and ratably by an irrevocable lien on the net revenues, as defined herein, derived from the operation of the facilities and on the investment income, as defined herein, and the Issuer does hereby irrevocably pledge such pledged funds to the payment of the principal of and interest on the obligations, for reserves therefor and for all other payments provided for in this Resolution. The lien of the holders of the obligations on the net revenues is junior and subordinate in all respects as to lien on and source and .security for payment from such net revenues to the lien thereon "- of the holders of the Outstanding 1967 Certificates. • SECTION 14. OBLIGATIONS NOT GENERAL INDEBTEDNESS. The obliga- tions and the coupons representing interest thereon shall not be or constitute an indebtedness of the Issuer within the meaning of any constitutional or statutory limitation of indebtedness, but shall be payable solely from and secured by a lien upon the pledged funds as herein provided for. No holder of any of the obligations or of the coupons shall ever have the right to compel the exercise of the ad valorem taxing power of the Issuer or taxation in any form on real property therein for payment thereof, or for the making of any sinking fund, reserve or other payments provided for in this Resolution. The obligations shall not constitute a lien upon the facilities, or any part thereof, or on any other property of or in the Issuer, but shall constitute a lien only on the pledged funds as herein provided. • SECTION 15. COVENANTS OF THE VILLAGE. For as long as any of the principal of and interest on any of the obligations shall be out- standing and unpaid, or until there shall have been set apart in the Sinking Fund or the accounts therein, hereby established, a sum sufficient to pay, when due, the entire.principal of the obligations remaining unpaid, together with interest accrued or to accrue thereon, the Issuer covenants with the holders of apy and all of the obliga- tions issued pursuant to this Resolution as follows, that: A. The Issuer shall first apply the gross revenues derived -14- • from the operation of the facilities in accordance with the require - remna mdty- ments of the 1967 Ordinance. The Issuer shall next deposit the entire- - gross revenues derived from the operation of the facilities, upon receipt thereof, into a special fund which is hereby created and designated the "1975 Water Revenue Fund" (hereinafter sometimes called the "1975 Revenue Fund "). Such fund shall constitute a trust fund for the purposes provided in this Resolution and shall be kept separate and distinct from all other funds of the Village and used only for the purposes and in the manner provided for in this Resolution. B. All moneys at any time remaining on deposit in the 1975 Revenue Fund shall be disposed of only in the following manner and order of priority: (1) Moneys in the 1975 Revenue Fund shall first be used • for the deposit monthly into a fund to be known as the "1975 Opera- tion and Maintenance Fund ", which is hereby created, of such amounts as are necessary for current monthly operating expenses after applica- tion for such purpose of the moneys in the Operation and Maintenance Fund created by the 1967 Ordinance. (2) There is hereby created and established a separate fund to be designated the "Water Revenue Certificates Sinking Fund" (hereinafter called "1975 Interest and Sinking Fund "). There is also hereby created and established in the 1975 Interest and Sinking Fund an account to be known as the "1975 Reserve Account ". The moneys remaining in the 1975 Revenue Fund shall next be applied by the Issuer on a monthly basis as follows: (i) Commencing with the month immediately following delivery of the obligations, to the 1975 Interest and Sinking Fund, an amount equal to one -sixth of the amount of interest which will matu =: and become due on all outstanding obligations on the.next succeeding interest payment date and an amount equal to one - twelfth (1/12) of the principal which will mature and become due on all the then outstar- ing obligations on the next succeeding principal maturity date; provided, however, that if any period is more or less than a full six or twelve months, then such payments shall be increased or reduced 5 rAEA )ub -+ - Pc%g.5&TLeJ A+ �� &une,l AIsr a� Dc'�Embr�?3, Iq�s -15- proportionately to provide the required amount to pay the next • maturing interest on and principal of the obligations. (ii) To the 1975 Reserve Account, an amount necessary to restore the balance therein, together with the balance in the Reserve Account created by the 1967 Ordinance, to the maximum Annual Debt Service Requirement becoming due on the obligations and the Outstanding 1967 Obligations in any ensuing fiscal year, which sum was initially deposited in the 1975 Reserve Account from the proceeds of the sale of the obligations pursuant to this Resolution. Moneys in the 1975 Reserve Account shall be used only for the purpose of the payment of maturing principal of or interest on the obligations when the moneys in the 1975 Interest and Sinking Fund are insufficient therefor, and for no other purpose. Any withdrawals from the 1975 Reserve Account shall subsequently be restored from the first moneys in the 1975 Revenue Fund available after all required prior payments, including all deficiencies for prior payments, have been made in full. (iii) Upon the issuance by the village of any additional parity obligations under the terms, limitations and conditions provided in this Resolution, the payments into the 1975 Interest and Sinking Fund shall be increased in such amounts-in direct ratio as are necessary to pay the Annual Debt Service Requirements for such additional parity bonds. A separate reserve account shall be created and established for each such issue of additional parity obligations. (iv) The Issuer shall not be required to make any . further payments into the 1975 Interest and Sinking Fund or the 1975 Reserve Account when the aggregate amount of moneys in such fund and account are at least equal to the aggregate principal amount of obliga- tions then outstanding, plus the amount of interest due or thereafter to become due on such obligations then outstanding. (3) The Issuer shall next deposit into a fund to be known as the "1975 Renewal and Replacement Fund"" fund is hereby created, on the fifteenth (15th) day of each month, beginning with -16- the fifteenth day of the month following the sale of the obligations, one - twelfth (1/12) of five per centum (5 %) of the gross revenues of the facilities collected during the preceding year; provided, however, that no further payments shall be required to be made into the 1975 Renewal and Replacement Fund when there shall have been deposited therein, and as long as there shall remain on deposit therein, an amount not less than $75,000.00. The moneys in such fund shall be used only for the purposes for which the moneys in the Renewal and. Replacement Fund created by the 1967.Ordinance may be used. (4) Thereafter, the balance of any moneys remaining in the Revenue Fund, after all of the above required current monthly payments have been made, may immediately be used by the Issuer for • any lawful purpose; provided, however, that none of said moneys shall ever be used for any purposes other than those hereinabove specified, unless all current payments, including any deficiencies for prior . payments, have been made in full and unless the Issuer shall have complied fully with all the covenants and provisions of this Resolu- tion. (5) The 1975 Operation and Maintenance Fund, the 1975 Interest and Sinking Fund, the 1975 Reserve Account therein, the 1975 Renewal and Replacement Fund and the 1975 Revenue Fund and any other special funds established and created by this Resolution shall constitute trust funds for the purposes provided herein for such funds. All such funds shall be continuously secured in the same manner by which the deposit of Village funds are authorized to be secured by the laws of the State of Florida. Moneys on deposit in the 1975 Interest and Sinking Fund (except the 1975 Reserve Account therein) may be invested and reinvested only in authorized investments, maturing not later than five (5) days prior to the date on which the moneys therein will be needed. Moneys in the 1975 Reserve Account may be invested and reinvested in authorized investments, maturing not later than fifteen (15) years from the date of investment. All -17- Investment Income, as herein defined, shall be deposited in the 1975 Revenue Fund promptly upon receipt thereof. C. MAINTENANCE OF FACILITIES. The Issuer will maintain the facilities and all parts thereof in good condition and will operate the same in an efficient and economical manner making such expenditure- for equipment and for renewals, repairs and replacements as may be proper for the economical operation and maintenance thereof. D. BOOKS AND RECORDS. The Issuer shall also keep books and records of the net revenues of the facilities hereinabove described, which such books and records shall be kept separate and apart from all other books, records and accounts of the Issuer and any holder of an obligation or obligations issued pursuant to this Resolution shall have the right at all reasonable times to inspect all records, accounts and data of the Issuer relating thereto. E. ANNUAL AUDIT. The Issuer shall also, at least once a year, 120 within -640 -days after the close of the fiscal year, cause the books, records and accounts relating to the facilities to be properly audited by a recognized firm of accountants and shall mail, upon request, and make generally available, the report of such audits to any holder or holders of obligations issued pursuant to this Resolution. Such audits shall contain a complete report of operations of the facilities, 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 applica- tion of all revenues of the facilities, a schedule of reserves and • investments and a certificate by the auditors stating that no default on the part of the Issuer 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 of the obligation holders or their duly authorized representatives. A copy of such annual audit, together with monthly operating statements of the r facilities shall regularly be furnished to original purchaser or purchasers of the obligations and to any other obligation holder or holders who shall request the same. f}s AMV)DCD &Uy)elL IWCFJ1h6 c D68rrMh'94 x.3 -18- • F. NO SALE OR MORTGAGE. The Issuer will not sell, mortgage, lease or otherwise dispose of property essential to the proper opera- tion of the facilities until after all the obligations authorized by this Resolution, and the interest due thereon, shall have been paid in full; except that any of the property comprising a part of the facilities which has become obsolete or has deteriorated so that the same is useless may be sold or disposed of by the Issuer upon the written approval of the Consulting Engineers. G. INSURANCE. For so long as any of the obligations herein authorized are outstanding, the Issuer will carry adequate fire and windstorm insurance on all buildings and structures of the works and properties of the facilities which are subject to loss through fire • or windstorm, will carry adequate public liability insurance, and will otherwise carry insurance of all kinds and in the amounts normally carried in the operation of similar facilities and properties in Florida. Any such insurance shall be carried for the benefit of the holders of the obligations. All moneys received for losses.under any of such insurance, except public liability, are hereby pledged Y by the Issuer as security for the obligations herein 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 damage or replacing the property destroyed within ninety (90) days from the receipt of such proceeds. H. COMPLETION OF PROJECT. The Issuer will complete the con- struction of the project as provided for in this Resolution in an • economical and efficient manner with all practicable dispatch, and thereafter will maintain said facilities in good condition and con- tinuously operate the same in an efficient manner and at a reasonable cost. I. NO FREE SERVICE. The Issuer will not render or cause to be rendered any free services of any nature by its facilities, nor will any preferential rates be established'for users of the same class; the Issuer including its departments, agencies and instru- mentalities, shall not avail itself of the facilities or services -19- provided by said facilities, or any part thereof, and the same rates, fees or charges applicable.to other customers receiving like services_ under similar circumstances shall be charged to the Issuer and any such department, agency or instrumentality. Such charges will be paid as they accrue, and the Issuer 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 facilities, and shall be deposited and accounted for in the same manner as other revenues derived from such operation of the facilities. J. FAILURE TO PAY FOR SERVICES. Upon failure of any user to pay for services rendered within sixty (60) days, the Issuer shall shut off the connection of. such user and shall not furnish him or • permit him to receive from the facilities further service until all obligations owed by him to the Issuer on account of services shall have been paid in full. This covenant shall not, however, prevent the Issuer.from causing any facilities connection to be shut off sooner. K. ENFORCEMENT OF COLLECTIONS. The Issuer will diligently enforce and collect the rates, fees and other charges for the services and facilities of the facilities herein pledged; 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 thereof. All such rates, fees, charges and revenues herein pledged shall, as collected, be held in trust to be applied as provided in this Resolution and not otherwise. L. REMEDIES. Any holder of the obligations or any coupons appertaining thereto, issued under the provisions of this Resolution or any trustee acting for the holders of such obligations 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 appdintment of a receiver, existing under the laws of the State of Florida, or granted and -20- 0 • contained in this Resolution, and may enforce and compel the performance of all duties required by this Resolution or by any applicable statutes to be performed by the Issuer or by any officer thereof. Nothing herein, however, shall be construed to grant to any holder of such obligations any lien on any real property of the Issuer. M. ANNUAL BUDGET. The Issuer shall annually, at least forty - - - ao five- (45) days preceding each of its fiscal years, prepare and adopt by resolution of its governing body, a detailed budget of the estimated expenditures for operation and maintenance of the facilities during such next succeeding fiscal year. No expenditures for the operation and maintenance of the facilities shall be made in any fiscal year in excess of the amounts provided therefor in such budget without a written • finding and a recommendation by the general manager of such facilities or other duly authorized officer in charge thereof, which finding and recommendation shall state in detail the purpose of and necessity for such increased expenditures for the operation and maintenance of said facilities and no such increased expenditures shall be made until the governing body of the Issuer shall have approved such finding and recommendation by a resolution duly adopted. No such increased expenditures in excess of ten per centum (100) of the amount provided therefor in such budget shall in any event be made except upon the further certification of the consulting engineers that such increased expenditures are necessary and essential to the continuance in operation of said facilities. The Issuer shall mail copies of such annual budgets and all resolutions authorizing • increased expenditures for operation and maintenance to any holder or holders of obligations who shall file his or their address with the Issuer and request in writing that copies of all such budgets and resolutions be furnished him or them and shall make available such budgets and all resolutions authorizing increased expenditures for operation and maintenance of the facilities at all reasonable times to any holder or holders of obligations issued pursuant to this Resolution, or anyone acting for and in behalf of such holder or holders AS AMSA M W AG &061 &611 #6 4� 1)a & 23 AP -21- N. ISSUANCE OF OTHER OBLIGATIONS. The Issuer will not issue any other obligations, except under the conditions and in the manner provided herein, payable from the pledged funds, nor voluntarily create or cause to be created any debt, lien, pledge, assignment, encumbrance or other charge having priority to or being on a parity with the lien of the.obligations issued pursuant to this Resolution and the interest thereon, upon said pledged funds. Any other obliga- tions issued by the Issuer in addition to the obligations authorized by this Resolution or pari passu additional obligations provided for in the next subsection, payable from said pledged funds, shall contain an express statement that such obligations are junior and subordinate in all respects to the obligations issued pursuant to this Resolution as to lien on and source of and security for payment from said pledged funds. The Issuer will not issue any additional parity obligations under or pursuant to Section 4.03 of the 1967 Ordinance payable from the net revenues as defined herein on a parity with the Outstanding 196 Certificates. 0. PARITY OBLIGATIONS. The Issuer reserves the right to issue additional obligations payable on a parity with the obligations herein authorized from the pledged funds. Any such obligations shall be issued solely for the purpose of extending, enlarging, improving or adding to the facilities and shall be subject to the following conditions and provisions: (1) There shall have been obtained and filed with the Village Clerk a certificate of an independent certified public accountant of ' suitable experience and responsibility stating: (a) that the books and records of the Issuer relative to the facilities have been audited by him; (b) the amount of the net revenues of the facilities for the fiscal year preceding the date of issuance of the proposed pari passu obligations with respect to which such certificate is made, adjusted as hereinbelow provided; (c) that the aggregate amount of such net revenue from the facilities for such preceding fiscal year, as adjusted, equal not less than 125% of the largest amount of Annual -22- Debt Service Requirement which will become due in any fiscal year thereafter on (i) the Outstanding 1967 Certificates, (ii) all out- standing obligations issued under this Resolution and all parity obliga— tions, if any, then outstanding, and (iii) on the parity obligations with respect to which such certificate is made. (2) Upon recommendation of the consulting engineers, historical net revenues from the facilities may be adjusted for purposes of this section by including: (i) 100% of the additional net revenue which in the opinion of.the consulting engineer would have been derived by the Issuer from rate increases adopted before the additional parity obligations are issued, if such rate increase had been implemented before the commencement of such fiscal year; and (ii) 1000 of the future annual net revenues estimated by the consulting engineer to be derived during the first full twelve -month period after comple- tion from facilities to be constructed or acquired from the proceeds of the parity obligations.with respect to which such certificate is made. (3) The Issuer shall not.default in the carrying out of any of the obligations assumed under this Resolution, and all payments required by this Resolution to be made into the funds and accounts established hereunder shall have been made to the full extent required. P. MANDATORY CONNECTIONS. The Issuer will, to the full.extent permitted by law, require all lands, buildings and structures within the Issuer's territory, fronting or abutting on the facilities, or any part thereof, or which can use the facilities and services of • such facilities to connect with and use such facilities within ninety (90) days after notification that service is available. The Issuer will not grant a franchise for the operation of any competing water system until all obligations issued hereunder together with the interest thereon have been paid in full. Q. CONSULTING ENGINEERS. The Issuer shall employ qualified consulting engineers in an advisory capacity, to inspect the facilities annually and to make reports and recommendations with respect thereto -23- • and concerning the operation, maintenance replacements, P p nts, property additions and improvements thereto. Upon request of any obligation holder, a copy of each such annual report shall be mailed, postpaid, to said obligation holder and a copy thereof shall remain on file with the Village Clerk for public inspection. R. SUPERVISORY PERSONNEL. The Issuer, in operating the facilities, will employ or designate one of its qualified employees as a manager who has demonstrated ability and experience in operating similar, facilities, and will require all employees who may have possession of money derived from the operation of the facilities to' be covered by a fidelity bond, written by a responsible indemnity company in amounts fully adequate to protect the Issuer from loss. S. RATES AND CHARGES. The Issuer will enact a rate ordinance and thereby will fix, establish and maintain such rates and will collect such fees, rentals or other charges for the services and facilities of the facilities and revise the same from time to time whenever necessary, or upon the recommendations of the consulting engineers, as will always provide revenues sufficient to pay (i) the operation and maintenance expenses of the facilities, (ii) effective on October 1, 1976, for the 1976 -77 fiscal year, 1150 of the maximum Annual Debt Service Requirement coming due in any ensuing fiscal year on the Outstanding 1967 Certificates, the obligations authorized herein, and any additional parity obligations then outstanding; (iii) effective on October 1, 1977, for the 1977 -78 fiscal year, 120% of such maximum Annual Debt Service Requirement (iv) effective on October • 1, 1978, for the 1978 -79 fiscal year and thereafter, 125% of such maximum Annual Debt Service Requirement, and (v) in all years, 100% of allzreserve and other payments provided for in this Resolution and in the 1967 Ordinance. Such rates, fees, rentals or other charges shall not be reduced so as to be insufficient to provide revenues for such purposes. SECTION 16. APPLICATION OF PROCEEDS OF OBLIGATIONS. All moneys received from the sale of the obligations shall be deposited by the -24- Issuer in special account in a bank or trust company and applied -by the Issuer as follows: A. All accrued interest on the obligations plus an amount sufficient to pay interest coming due on the obligations during the next ensuing twelve months after delivery of obligations shall be deposited in the 1975 Interest and Sinking Fund. B. The Issuer shall next deposit into the 1975 Reserve Account in the 1975 Interest and Sinking Fund an amount which, when added to the balance then on deposit in the Reserve Account created by the 1967 Ordinance, shall be equal to the maximum Annual Debt Service Requirement, as herein defined, in any ensuing fiscal year, of the obligations of this issue and the Outstanding 1967 Obligations. • C. The Issuer shall next use the moneys in said special fund to pay all engineering fees, legal fees, fees of financial advisors, cost of the issuance of the obligations, and all other similar costs incurred in connection with the acquisition and construction of the project and the issuance of the obligations to finance the cost thereof. D. A special fund is hereby created, established and designated as the "Series 1975 Water Construction Fund" (herein called the "Construction Fund "). There shall be paid into the Construction Fund the balance of the moneys remaining after making all the deposits and payments provided for in paragraphs A, B, and C above. Such fund shall be kept separate and apart from all other accounts of the Issuer, and the moneys on deposit therein shall be withdrawn, used and applied by the Issuer solely to the payment of the cost of the project and purposes incidental thereto, as hereinabove and here- inafter described and set forth. All such proceeds shall be and constitute trust funds for such purposes and there is hereby created a lien upon such money until so applied in favor of the holders of the obligations. Any funds on deposit in the Construction Fund which, in the opinion of. the Issuer, acting upon the recommendation of the consulting engineers, are not immediately necessary for expenditure, as herein - above provided, may be invested in Authorized Investments. All such -25- • " securities shall be held by the depository bank, and all income derived therefrom shall be retained in the Construction Fund. All expenditures or disbursements from the Construction Fund shall be made only after such expenditures or disbursements shall have been approved in writing by the consulting engineers. The date . of completion of the project shall be determined by the consulting engineers, who will certify such facts in writing to the governing body of the Issuer. SECTION 1.7. 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 holders of two- thirds or more in the principal amount of the • obligations then outstanding; provided, however, that no modification or amendment shall permit a change in the maturity of such obligations or reduction in the rate of interest .thereon or in the amount of the principal obligation thereof or affecting the promise of the Issuer to pay the principal of and interest on the obligations as the same shall become due from the pledged funds or reduce the percentage of the holders of the obligations required to consent to any material modification or amendment hereof without the consent of the holder or holders of all such obligations; provided, further that no such modification or amendment shall allow or permit any,acceleration of the payment of princpal of or interest on the obligations upon any default in the payment thereof whether or not the holders of the obliga- tions consent thereto. • SECTION,18. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the covenants, agreements or provisions herein contained shall 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 separable. from the remaining covenants, agreements or provisions and shall in no way affect the validity of any of the -26- • other provisions hereof or of the obligations or coupons issued hereunder. SECTION 19. SALE OF OBLIGATIONS. The obligations shall be issued and sold in such manner and at such price or prices consistent with the Act, all at one time or in installments from time to time, as shall be hereafter determined by the governing body of the Issuer, and, if issued in installments, shall be given an appropriate numerical identification. SECTION 20. ARBITRAGE. No use will be made of the proceeds of the obligations which will cause the same to be "arbitrage bonds" within the meaning of the Internal Revenue Code. The Issuer at all times while the obligations and the interest thereon are outstanding • will comply with the requirements of Section 103(d) of the Internal Revenue Code and any valid and applicable rules and regulations of the Internal Revenue Service. SECTION 21. VALIDATION AUTHORIZED. The Attorney for the Issuer is authorized and directed to prepare and file proceedings to validate the obligations in the manner provided by law. SECTION 22. REPEALING CLAUSE. All resolutions, regulations or parts thereof of the Issuer in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. SECTION 23. EFFECTIVE DATE. This Resolution shall take effect in the manner provided by law. PASSED AND ADOPTED ON READING THIS _?3 DAY OF A.D., 197.5 VY 7= Playor Ovb Attes 111A /4 IR Villag Clerk -27- CERTIFICATE OF RECORDING OFFICER undersigned si ned The r g HEREBY CERT IFIES that: 1. She is the duly appointed, qualified, and acting Clerk of the Village of Tee, u s .a (herein called the Village Clerk ), and keeper of the records thereof, including the minutes of its proceedings; 2. The annexed copy of extracts from the minutes.of the regular meeting of the Village Council , -held on the 23 day of December 19 75 is a true, correct, and compared copy of the whole of the original minutes of said meeting on file and of record insofar as the same relate to the resolution referred to in said extracts and to the other matters referred to therein; 3. Said meeting was duly convened in conformity with all applicable requirements; a proper quorum was present through- out said meeting and the resolution hereinafter mentioned was duly proposed, considered, and adopted in conformity with appli- cable requirements; and all other requirements and proceedings incident to the proper adoption of said resolution have been duly • fulfilled, carried out, and otherwise observed; 4. He is duly authorized to execute this Certificate; and 5. The copy of the resolution annexed hereto entitled: A RESOLUTION PROVIDING FOR THE ACQUISITION AND CONSTRUCTION OF ADDITIONS, EXTENSIONS, AND IMPROVEMENTS TO THE WATER SYSTEM OF THE VILLAGE OF TEQUESTA, FLORIDA; PROVIDING FOR THE ISSUANCE OF NOT EXCEEDING $365,000 WATER REVENUE CERTI- FICATES, SERIES 1975, TO PAY THE COST OF SUCH PROJECT; PROVIDING FOR THE RIGHTS OF THE HOLDERS OF SUCH CERTIFICATES; PROVIDING FOR THE PAYMENT THEREOF; AND MAKING CERTAIN OTHER- COVENANTS AND AGREEMENTS IN CONNECTION WITH THE ISSUANCE OF SUCH CERTIFICATES. is a true, correct, and compared copy of the original resolution referred to in said extracts and as finally adopted at said meet- ing and, to the extent required by law, as thereafter duly signed or approved by the proper officer or officers of the Village of Tequesta , which resolution is on file and of record. • WITNESS my hand and the seal of the Village of Te uesta this day of 19 Village Clerk (SEAL) • IN THE CIRCUIT COURT FOR PALM BEACH COUNTY, FLORIDA FIFTEENTH JUDICIAL CIRCUIT • ' VILLAGE OF TEQUESTA,.FLORIDA, ) a political subdivision of the) CASE NO. 76 -290 CA (L) Ol H State of Florida, ) Plaintiff, ) VS. ) FINAL JUDGMENT STATE OF FLORIDA, and the Tax -) payers, Property Owners and ) Citizens of the Village of ) Tequesta including non- ) residents owning property or ) subject to taxation therein, ) et al., ) Defendants. ) ------------------------------ The above and foregoing cause came on for final hearing on the date and at the time and place set forth in the Order to Show Cause heretofore issued by this Court and in the notice addressed to the State of Florida and the several property owners, taxpayers and citizens of the Village of Tequesta, Florida, (here- inafter called "plaintiff "), including non - residents owning property or subject to taxation therein and all others having or claiming anv right, title or interest in property to be affected by the issuance by the plaintiff, of not exceeding $365,000 Water Revenue Certificates, Series 1975 (hereinafter called "obligations") here- inafter more particularly described, or to be affected in any way thereby, as heretofore issued against the State of Florida on complaint of the plaintiff, David H. Bludworth, State Attorney, having filed an answer herein, this cause having duly come on for final hearing, and the Court having considered the same, heard the evidence and • being fully advised in the premises, finds as follows, that: 1. Plaintiff, is and at all times hereinafter mentioned was, a duly and legally organized and existing political subdivi- sion of the State of Florida, created and incorporated under the provisions of the Constitution and the Laws of the State of Florida. 2. Plaintiff, in and by Chapter 166, Florida Statutes, is authorized to relocate existing water lines to accoiminodate the part of the water v,ic?ening of U. S. Highway 1, such lines being a system of the plaintiff (hereinafter called "facilities "), pursuant to the recommendations of the consulting engineers on file with the • plaintiff (hereinafter called "project "). 3. Authority is conferred upon said plaintiff by the Constitution and Laws of the State of Florida, particularly such Chapter 166, to issue the obligations to finance the cost of the project and to pledge the net revenues derived from the operation of the facilities and of the investment income derived from the investment of money on hand in the Sinking Fund and Reserve Account to the payment of such obligations and the interest thereon. 4. It is necessary for the continued preservation of the health, welfare, convenience and safety of the plaintiff and its inhabitants to construct and acquire the project, and it is essential ,that same be accomplished in accordance with the provisions of that certain resolution adopted on December 23, 1975 (hereinafter called "Resolution ") which said Resolution authorizes the issuance of the obligations, hereinafter more particularly described. 5. Pursuant to and in accordance with the provisions of the Constitution and Laws of Florida, plaintiff, by such Resolution authorized and provided for the issuance of the obligations dated January 1, 1976, in the denomination of $5,000 each, numbered consecutively from one upward, maturing and bearing interest at such rate or rates as hereinafter set forth, for the purpose of financing the cost of the project, all of which appears and is more fully set forth in the certified copy of the Resolution heretofore filed herein. 6. The estimated net revenues to be derived from the operation of the facilities will be sufficient to pay the amount to become due in each fiscal year for the payment of the principal of and interest on the obligations herein referred to. 7. The obligations shall be payable as to both principal and interest solely from the net revenues derived from the operation of the -facilities and of the investment income derived from the i Ves mP 2nt of moneys on hand In Sin Fund and Reserve Account therein. The obli- gations will not constitute an indebtedness of the plaintiff within the meaning ofE a::.- statutory lim.iLation and no -2- or holders of any of the obligations or any coupons appertaining thereto shall ever have the right to compel the exercise of the ad valorem taxing power of the plaintiff to pay the obligations or the interest thereon or to make any of the reserve, sinking fund or other payments provided for in the Resolution. The obligations shall not constitute a lien upon the facilities except upon the revenues derived from the operation of the facilities. 8. The obligations are not "bonds" within the meaning of the Constitution of Florida, and are not required by the Constitutioi and Statutes to be approved at an election. 9. The plaintiff, pursuant to the Constitution and Laws of the State of Florida, has the power and is authorized, and in the Resolution has covenanted, at all times, to fix, establish and maintain sufficient rates and collect such fees, rentals or other charges for the services of the facilities and to revise the same from time to time whenever necessary, as will always provide revenues in each year sufficient to pay (i) all costs of operation and maintenance of the facilities in such year, (ii) effective on October 1, 1976, for the 1976 -77 fiscal year, 115% of the.maximum Annual Debt Service Rec1 i? ement -(as defined in the Resolution) coming due in any ensuing fiscal year on the Outstanding 1967 Certificates, the certificates of this issue, and any additional parity obligations then outstanding; (iii) effective on October 1, 1977, for the 1977 -78 fiscal year, 120° of such maximum Annual Debt Service Requirement; (iv) effective on October 1, 1978, for the 1978 -79 fiscal year and thereafter, 125% of such maximum Annual Debt Service Requirement, and (v) in all years, 1006 of all reserve and other payments provided for in such Resolution and in the ordinance authorizing the Outstanding 1967 Certificates and that such rates, rentals, fees or other charges shall not be reduced so as to be insufficient to provide revenues for such pur- pose. Such covenant is legal and valid in all respects. 10. The lien of the obligations on the net revenues of the facilities will be junior and subordinate in all respects to the lien thereon of certain outstanding Water_ Revenue Certificates of plaintiff, da - d July 1, 1967. -3- • 11. The obligations are of the character and the proceedings P ei in.ary t0 the i ssuance the--eof are ±,}•he _ ature as entitle th e pia i �' f f to proceed w3 t -hin , ��rOv i o?? Ji er �Js "loi %c � .a s , for the purposes of i` a -,ring - Lhe r gn t of he plaintiff U col_ -1 -sue u.a ? -a t? ons de �4r ::pined. 2. aae a_nd proper notice addressed to the State of Florida, and the several property owners, - 1 1 axpayers and citizens of the plaintiff n•21uding non-residents mining property or sub ject to taxation tile=ein and all others havi or Claiming any right, title or interest in property to be affected by the issuance b the plaintiff of the obligations, hereinbefore described_, icas duly published by the Clerk of tie=s Court in a ne�e7spaper public "--d IML Pals, Beach County and of general circulation it said Village of i equesta, Florida, once each S we ek foi at least =three conse_ sieelr.` . the c+a r= t publj ca Lon being at least twenty days prior to the cute of said hearing, as required by 1 = °, all as ��ill more fad,? y appear rom tie aff ida��it of uhe liaJ3 i of the Palm Beach ch `_ os !, `1'Lmes here t of ore herein i iic' d L + - resi users, 'CIo intervened in procaPd %?1a, ha raised certain objections i,o he issu Upon thy' evidence the Tn" er ; eno s objections a [4i th au '14. { fife L Ld of t o Sta e :�tto'!'ney for and on behalf of 'mot' of Fri a has j3eet. ce-- 1 I -QY conside °d y i3 %s Court. f, r r c t r, n h o � the prayer ')f tilt T} sr?�Ju.ld no c : ;. _ _ _ � e _c.. r. = e t _ ^ " 1 l a- c.., l L 4_ ' he no be _,� :.T? i. u �d C'� SC�.OS�S :20 2i"?" °vLir�= i.'�;y Ci?" � '�"� ' �; n se in said Co -pla_i g't, and the ob jections contained in sai be ard the sa="�? are hereby overruled and dismissed. • 15. This Court has Band - that all requiroer.ients of the Con and Lai a o% Vile S _ t e of -Florida pert..-? -nJ n j to the a r r ac a l i Y cee n i the above entitled t:_c � �� ur have been rice .y "ollow ed. N TH E '0R T IS k D -EArM t1 iS s LE,.:,.nc a ,o ,fat _,r Rnva nu e Certif icat s, S 19 ds.ted i,nuary ? , 1970 +✓T� d "_lla ma o° silt'' =t" not nxcnt =i!!. s in the Cl_ '2 O "1i T >^� n± � " •I7, *`d co ._ `i1Vid 9 $ i 4 from one upward, and to mature in numerical order on January 1 in such years, but not later than 2005, and in amounts to be fixed by i subsequent resolution, bearing interest not exceeding the maximum rate permitted by law, principal and semi - annual interest (January 1 and July 1) callable as provided in said Resolution, is for a proper public, legal and corporate purpose and is fully authorized by law, and that the obligations and each of them to be issued as aforesaid and all proceedings incident hereto are hereby validated and con- firmed. The obligations are to be issued to finance the cost of the project. The obligations as and when so issued, will be payable from and secured by a lien upon and a pledge of the net revenues derived from the operation of the facilities of the plaintiff and of' the investment income derived from the investment of moneys on hand in the Sinking Fund and Reserve Account therein. However, the lien on the obligations on such revenues is junior and subordinate in all respects to the lien thereon of said Water Revenue Certificates of plaintiff dated July'l, 1967, in the manner and under the terms and conditions contained in the Resolution. There shall be stamped or written on the back of each of said obligations, a statement in substantially the following form: This Certificate is one of a series of Certificates which were validated and confirmed by judgment of the Circuit Court for Palm Beach County, Florida rendered on March , 197.6. Mayor provided, however, that should an appeal be taken from this judgment within the period of thirty days, then and in that event the obliga- tions shall not be delivered to' the purchaser or purchasers unless and until a mandate of the Supreme Court of Florida affirming this judgment shall have been recorded in the office of the Clerk of this Court. DONE AND ORDERED, at the Courthouse in West Palm Beach, Palm Beach County, Florida, this _-:��'day of March, 1976_ Judge o he Circu Cart r Palm Beach County, Florida -5-