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HomeMy WebLinkAboutResolution 2019-19 Central Winds Internal Note Forgiveness (2) RESOLUTION NUMBER 2019-1.9 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, FORGIVING THE REMAINING PRINCIPAL BALANCE OF THE CENTRAL WINDS PARK INTERNAL NOTE APPROVED PURSUANT TO RESOLUTION NUMBER 2016-21 IN THE AM013NT OF APPROXIMATELY $860,000.00; COMMENCING IN CITY FISCAL YEAR 2019/2020, DISCONTINUING THE LEVY OF THE VOTER APPROVED LIMITED AD VALOREM TAX DEBT MILLAGE OBLIGATION APPROVED BY THE REGISTERED VOTERS OF THE CITY OF WINTER SPRINGS IN A BOND REFERENDUM ON SEPTEMBER 4, 2001; PROVIDING FOR REPEAL OF PRIOR INCONSISTENT RESOLUTIONS; SEVERABILITY; AND AN EFFECTIVE DATE, WHEREAS, on September 4, 2001, registered voters of the City of Winter Springs authorized the issuance of limited ad valorem bonds in a principal amount not to exceed $3,400,000.00, to bear interest at a rate not to exceed the maximum rate permitted by law, and by levying an ad valorem tax not to exceed one-quarter of one mill (0.25) on all taxable property within the City of Winter Springs to be used for purposes of repaying such bonds required to acquire land and expand Central Wind Park and to construct soccer, football, baseball and other recreational facilities on said land ("Pledged Funds"); and WHEREAS, on February 27, 2002, following the approval of the issuance of its 2002 Bonds (as hereinafter defined) at a bond referendum election, the City of Winter Springs, Florida (the "City") issued its Limited General Obligation Bonds, Series 2002 in the amount of $3,400,000.00 (the "2002 Bonds"), and WHEREAS, pursuant to City Resolution No. 2012-14, the City accepted the proposal of Branch Banking and Trust Company to refund the 2002 Bonds and issued a note, dated May 18, 2012 (the "2012 Note") secured by the Pledged Funds; and WHEREAS, pursuant to City Resolution No. 2016-21, the City utilized unrestricted capital project reserves available to refund the 2012. Note on January 1, 2017 or soon thereafter, provided the City's Capital Project Fund Reserve Account #305 is secured and repaid by the Pledged Funds in accordance with the terms and conditions of said Resolution and the Limited General Obligation Refunding Central Winds Park Internal Note, Series 2017 in an arnount not to exceed $1,300,000.00 (the "Central Winds Park. Internal Note" or "Internal Note"); and WHEREAS, the money utilized from the Capital Project Fund Reserve Account#305 to refund the 2012 Note originated from excess general fund reserves transferred into the Capital Project Fund Reserve Account#305 in Fiscal Year 2016; and WHEREAS,the City currently has excess unrestricted general fund reserves in a sufficient amount of approxirrrately$860,000.00 that would fiscally:justify and warrant the City Commission City of Wintcr Springs,Florida Resolution 2019-19 Pale 1 42 forgiving the remaining principal balance of the Central Winds Park Internal Note without levying any additional voter approved ad valorem millage authorized by referendum on September 4, 2001; and WHEREAS, by f"orgiving the remaining principal balance of the Central Winds Park Internal Note,the City call discontinue sooner than expected the voter approved limited ad valorem tax millage obligation approved by the registered voters of the City of Winter Springs in a bond referendum oil September 4, 2001; and WHEREAS, the City Commission of the City of Winter Springs deems that. this Resolution is in the best interest of the public health, safety, and welfare and of the citizens of Winter Springs. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS FOLLOWS: Section 1. Incorporation of Recitals. The foregoing recitals are deemed true and correct and are hereby fully incorporated by this reference. Section 2. Forgiveness of Internal General Obligation Loan. Effective at the commencement of the next City fiscal year on October 1, 2019, the remaining principal balance ofthe Central Winds Park Internal Note authorized by City Commission Resolution Number 2016- 21 is hereby deemed forgiven and cancelled. The City Manager and Finance Director shall complete a final accounting of the Pledged Revenues received by the City and the Central Winds Park Internal Note in accordance with applicable accounting requirements. Section 3. Discontinuance of Voted Debt Millage Obligation. The City Commission hereby expresses its intent to discontinue the levy of the voter approved limited ad valorem tax debt millage obligation approved by the registered voters of the City of Winter Springs in a bond referendum on September 4, 2001. The aforementioned limited ad valorem tax debt millage rate shall not be levied in future fiscal years commencing with the upcoming 2019/2020 City fiscal year. The City Manager and Finance Director are hereby directed to work with the Florida Department of Revenue and Seminole County Tax Collector to effectuate the discontinuance in accordance with this Section. In addition, the proposed City budget and millage rate resolutions for the upcoming new fiscal year 2019/2020 shall not include and incorporate the aforementioned discontinued limited ad valorem tax debt millage rate. Section 4. Repeal of Prior Inconsistent Resolutions. All prior resolutions or pails of resolutions in conflict herewith are hereby repealed to the extent of the conflict. Section 5. Severability. If any section,subsection,sentence,clause,phrase,word,or portion of this Resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. Section 6. Effective Date. This Resolution shall become effective immediately upon ('my of Winter Springs,Florida Resolution?019-1 c) Page I oi'2 adoption by the City Commission of the City of Winter Springs, Florida. RESOLVED by the City Commission of the City of Winter Springs, Florida ill a regular Commission meeting assembled on the 8th day of"July, 2019. y y � Chanes acey, 7 M`r 4yo r ATTEST. mm. Andrea ctrettzu Laaces, City Clerk Approved as to legal form and sufficiency for the City of Winter Springs only: „r+ � „mss, Ant 'an'y A. Garganese, City Att ney City of Winter Springs,Florida Resolution 2014-14 Page 2 of 2