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Home My WebLink About1999 10 11 Regular Item G COMMISSION AGENDA ADD-ON ITEM G Consent Informational Public Hearings Regular X October 11, 1999 Meeting ~uJrIL Mgr. 1 Dept. Authorization REQUEST: City Manager recommending adoption of Resolution Number 899 authorizing a Covenant to Budget and appropriate Non-Ad Valorem revenues for security for the City of Winter Springs Special Assessment Revenue Bond Anticipation Notes, Series 1999. PURPOSE: The purpose of this agenda item is to acquire authority from the Commission to take actions needed to secure the Assessment Notes previously authorized by the Commission for the financing of improvements for the Tuscawilla Lighting and Beautification District. CONSIDERATIONS: On October 4, 1999, Eugene C. Lein and Thomas C. Lenzini filed a suit against the City, among other things, asking for the courts to enjoin the implementation of the Tuscawilla Lighting and Beautification District Advisory Committee. Although the complaints of the suit appear to be fully defensible by the City, the suit could cause a substantial delay in implementation of the District and cause an estimated $500,000.00 in cost increases for the Property Owners of the District. The City's Legal Counsel, after discussion with Counsel for NationsBank, the purchaser of the Notes, is recommending the following: CITY OF WrNTER SPRINGS REGULAR AGENDA - OCTOBER II, 1999 ADD-ON REGULAR AGENDA ITEM "G" PAGE20F2 1. Securing the Notes with a Covenant to Budget and appropriate Non- Ad Valorem revenues to pay the Notes, should assessment payments be interrupted by the litigation. This action would allow the construction of improvements to proceed immediately. FUNDING: It is estimated that these two (2) strategies will cost approximately $5,000.00 payable from the assessment fund. STAFF RECOMMENDATION: It is recommended that the Commission adopt Resolution Number 899 authorizing the Covenant to Budget and appropriate Non-Ad Valorem revenues for security for said Notes. ATTACHMENTS: A. Resolution Number 899 COMMISSION ACTION: RESOLUTION NUMBER 899 A RESOLUTION OF THE CITY OF WINTER SPRINGS. FLORIDA SUPPLEMENTING CITY RESOLUTION NO. 896 BY COVENANTING TO BUDGET AND APPROPRJA TE CERTAIN LEGALLY AVAILABLE NON~AD VALOREM FUNDS TO PAY PEBT SERVICE ON THE CITY'S SPECIAL ASSBSSMENT REVENUE BOND ANTICIPATION NOTES, SERIES 1999 (TUSCAWILLA LIGHTING AND BEAUTIFICATION DISTRICT) TO THE EXTENT SPECIAL ASSESSMENTS ARE INSUFFICIENT TO DO SO; AUTHORIZING THE EXECUfION AND DELIVERY OF ALL DOCUMENTS AND CB){'llFICATES AS ARE REQUIRED IN CONNECTION WITH THE ISSUANCE AND DEL~Y OF THE NOTES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Winter Springs. Florida (the c'!ssuer" or the UCitylf), has by Resolution No. 896 and Resolution No. 897 adopted on September 27. 1999. authorized the issuance of lU,ld awarded the sale to Bank of America. N.A.. d/b/a NationsBank, N.A. (the "Purchaser") the City's Special Assessment Revenue Bond Antioipation Notes, Series 1999 (Tuscawilla Lighting and Beautification District) (the ''Notes'') for the purpose of payfug Costs of the Proj ect (&S defined in said Resolution No. 896)~ and WHEREAS, subsequent to the adoption of Resolutions No. 896 and 897 litigation has been filed against the City challenging among other. matters certain actions of the City in connection with the City's imposition of the Assessments (as defined in Resolution No. 896); and WHEREAS, as a result of such litigation the Purchaser has requested that Resolution No. 896 be supplemented as hereafter provided and the City has determined that to so supplement Resolution No. 896 is in the best interest of the City and its citizens. BE IT RESOL YED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA: Section I. COVENANT TO BUDGET AND APPROPRIATE. Resolution No. 896 is hereby supplemented by adding thereto a section 19(N) to read as follows: The City covenants and agrees to appropriate in its annual budget, by amendment, if necessary, from Non-Ad Valorem Funds (as defmed in said Resolution No. 896) amounts sufficient to (1) pay principal of. Redemption Price (as defined in said Resolution No. 896), if any, and interest on the Notes when due, (2) pay all fees and expenses of the Paying Agent and the Registrar and (3) pay all other required deposits as provided herein but only to the extent that Pledged Revenues are insufficient to make such payments. Such covenant and agree~ent on the part of the City to bucj.get and appropriate such amounts of Non-Ad Valorem Funds shall be cumulative to the extent not paid and shall continue until such Non-Ad Valorem Funds or other legally available fuads in amounts sufficient to make all such required payments shall have been budgeted, appropriated and actually paid. . Notwithstanding the foregoing covenant of the City, the City ORL#5130S2.01 does not covenant to maintain any services or programs, now provided Of maintained. by fuo City, which generate 'Non-Ad Valorem Funds. Such covenant to budget and appropriate does not create any lien upon or pledge of such Non-Ad Valorem Funds, nor does it preclude the City from pledging in the futuro its Non-Ad Valorem Funds. nor does it require the City to levy and collect any particular Non-Ad Valorem Funds, nor does it give the Noteholders a prior claim on the Non-Ad Valorom Funds as opposed to claims of general creditors of the City. Such covenant to appropriate Non~Ad Valorem Funds is subject in aU respects to the payment of obligations secured by a pledge of such Non-Ad Valorem l'unds heretofore or hereafter entered into (including the payment of debt service on bonds and other debt instruments). However, the covenant to budget lUld itFprupriato for the purposes and in the manner stated herein sl1all have the effect of making available for the payment of the Notes in the manner described herein Non-Ad Valorem Funds and placing on the City a positive duty to appropriate and budget. by amendment, if necessary, amounts sufficient to meet its obligations hereunder; subject. however. in all respect to the restrictions of Section 166.241(3}, Florida Statutes. which provides that the governing body of each municipality may only tll3ke appropriations for each Fiscal Year whioh, in any on~ year, shall not exceed the amount to be received from taxation or other revenues sources; and subject, further, to tho 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. The City agrees to deposit in the appropriate fund, solely from ftmds budgeted and appropriated as described above, at least one business day prior to the date such payment is due, the amount required to cute any insufficiency in ~uch fund. Section 2. AUTHORlZATION OF EXECUTION OF OTHER CERTIFICATES AND OTHER INSTRUMENTS. The Mayor. the City Manager. the City Clerk and the City's Finance Director are hereby authorized and directed. either alone or jointly, under the official seal of the City to execute and deliver certificates and documents of the City as the City Attorney, counsel to the Purchaser or Bond Counsel shall require in connection with the issuance, sale and delivery of the Notes, and to execute and deliver such other instruments as shall be necessary or desirable to perform the City's obligations under this Resolution and Resolution No. 896 and to consummate the transactions contemplated hereby and thereby. Section 3. RESOLUTION NO. 896 IN FULL FORCE AND EFFECT. Except as hereby sUPIllemented, Resolution No. 896 sball remain in full force and effect. ORL#51305:!.Ql Seot1an 4. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED this 11 th day of October, 1999. ' "/ II (S~) C Attest: L Approved as to form and legal sufficiency: ORL#513052.01 Mayor