Resolution 348-1991
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RESOLUTION NO.
348-1991
A RESOLUTION AMENDING A RESOLUTION OF THE BOARD OF
COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA,
ENTITLED:
"A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA, AUTHORIZING THE
ACQUISITION AND CONSTRUCTION OF ADDITIONAL CRIMINAL
JUSTICE FACILITIES IN MONROE COUNTY, FLORIDA;
PROVIDING FOR THE ISSUANCE OF NOT EXCEEDING
$40,000,000 SALES TAX REVENUE BONDS, SERIES 1991,
OF THE COUNTY TO FINANCE THE COST THEREOF;
PROVIDING FOR THE PAYMENT OF SUCH BONDS FROM THE
PORTION OF THE ONE CENT LOCAL GOVERNMENT
INFRASTRUCTURE SURTAX PROCEEDS DISTRIBUTABLE TO THE
COUNTY; MAKING CERTAIN COVENANTS AND AGREEMENTS IN
CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE
DATE."
DULY ADOPTED ON MARCH 27,
NECESSARY FOR ISSUANCE
INSURANCE POLICY FOR THE
EFFECTIVE DATE.
1990, BY MAKING CHANGES
OF A MUNICIPAL BOND
BONDS; AND PROVIDING AN
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA:
SECTION 1. AUTHORITY FOR THIS RESOLUTION. This
resolution is adopted pursuant to Section 212.055(2), Florida
Statutes, and other applicable provisions of law.
SECTION 2. FINDINGS.
determined and declared that:
It is hereby ascertained,
A. The Board of County Commissioners of Monroe County,
Florida (the "Governing Body"), on March 27, 1990, duly adopted a
resolution entitled:
"A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA,
AUTHORIZING THE ACQUISITION AND CONSTRUCTION
OF ADDITIONAL CRIMINAL JUSTICE FACILITIES IN
MONROE COUNTY, FLORIDA; PROVIDING FOR THE
ISSUANCE OF NOT EXCEEDING $40,000,000 SALES
TAX REVENUE BONDS, SERIES 1991, OF THE COUNTY
TO FINANCE THE COST THEREOF; PROVIDING FOR THE
PAYMENT OF SUCH BONDS FROM THE PORTION OF THE
.~,~
ONE CENT LOCAL GOVERNMENT
SURTAX PROCEEDS DISTRIBUTABLE
MAKING CERTAIN COVENANTS AND
CONNECTION THEREWITH; AND
EFFECTIVE DATE."
INFRASTRUCTURE
TO THE COUNTY;
AGREEMENTS IN
PROVIDING AN
and subsequently
"Resolution) .
amended
the
same
(collectively,
the
B. It is necessary and desirable to amend the
Resolution by making changes necessary for issuance of a
municipal bond insurance policy for the Bonds.
SECTION 3. AMENDMENTS TO RESOLUTION. The Resolution is
amended in the following manner.
A. Section 1.02E of the Resolution is hereby amended to
read as follows:
"'Authorized Investments' shall mean any of the
following if and to the extent the same are at the time legal for
investment of county funds:
(1) Government Obligations which are held in a custody
or trust account by a bank or savings and loan association which
is either (a) a 'qualified public depository' under the laws of
the State of Florida or (b) has capital, surplus and undivided
profits of not less than $50,000,000, and which is a member of
the Federal Deposit Insurance Corporation ('FDIC');
(2) bonds, debentures, notes or other evidences of
indebtedness issued or guaranteed by any of the following
agencies or such other like governmental or government-sponsored
agencies subsequently created, so long as such agencies are owned
or sponsored by the United States of America and such obligations
are backed by the full faith and credit of the United States of
America: Government National Mortgage Association;
(3) bonds, debentures, and notes or other evidence of
indebtedness issued or guaranteed by any of the following non-
full faith and credit United States government agencies (stripped
securities are only permitted if they have been stripped by the
agency itself): Federal Home Loan Bank System (senior debt
obligations); Federal Home Loan Mortgage Corporation
(participation certificates or senior debt obligations); and
Student Loan Marketing Association (senior debt obligations);
(4) interest
in any commercial bank
member of FDIC and is
laws of the State of
insured by FDIC;
bearing time deposits or savings accounts
or savings and loan association which is a
a 'qualified public depository' under the
Florida, provided such deposits are fully
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(5) repurchase agreements or investment contracts with
any bank, trust company (including any trustee acting on behalf
of the Issuer) or savings and loan association which is a member
of FDIC, is a 'qualified public depository' under the laws of the
state of Florida and is rated 'A' or better by standard & Poor's
Corporation ('S&P') and Moody's Investors Service ('Moody's'); or
with any broker or dealer registered with the Securities Exchange
Commission and subject to Securities Investors' Protection
Corporation liquidation in the event of insolvency; in any case
rated 'A' or better by both S&P and Moody's, and which are
primary dealers on the Federal Reserve reporting dealer list;
provided, that (a) the repurchase or investment agreements are
secured by those securities described in paragraphs (1) or (2)
above having at all times a fair market value of at least (i)
104%, of the value (principal plus accrued interest) of such
agreement or contract for collateral securities described in (1)
above and (ii) 105% of the value (principal plus accrued
interest) of such agreement or contract for collateral securities
described in (2) above; (b) the Issuer (or any trustee acting on
its behalf) has a perfected first security interest in such
securities described in paragraphs (1) or (2) above; and (C) such
securities described in paragraphs (1) or (2) above are owned by
the pledgor free and clear of any kind of liens or security
interests other than that of the Issuer (or any trustee acting on
its behalf); the security for any repurchase agreements and
investment contracts being (A) in the case of Government
Obligations which can be pledged by book entry notation under
regulations of the United States Treasury, appropriately entered
on the records of a Federal Reserve Bank, or (B) in the case of
other investments, deposited with the Issuer (or any trustee
acting on its behalf), a Federal Reserve Bank or a bank or trust
company which is acting solely as agent for the Issuer (or any
trustee acting on its behalf), and which has a combined net
capital and surplus of at least $25,000,000; or
(6) the Local Government Surplus Funds Trust Fund as
described in Section 218.405, Florida Statutes."
B. Section 1.02K of the Resolution is hereby amended to
read as follows:
"'Bond Year' shall mean the one year period beginning on
April 1 of each year and ending on the succeeding April 2."
C. Section 1.02R of the Resolution is hereby amended to
read as follows:
"'Government Obligations' shall mean direct obligations
of (including obligations issued or held in book-entry form on
the books of the Department of the Treasury), or obligations the
principal of and interest on which are unconditionally guaranteed
by, the United States of America."
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D. A new Section 1.02V is hereby added to read as
follows. The remaining subsections are renumbered accordingly.
"'Non-Ad valorem Revenues' shall mean, for purposes of
the test for the issuance of additional debt obligations, all of
the revenues of the Issuer derived from sources other than ad
valorem taxation, other than enterprise fund revenues, subject to
any prior liens or encumbrances on all or any specified portion
thereof, whether now existing or hereafter created. The term
'Non-Ad Valorem Revenues' for purposes of the covenant to budget
and appropriate for deficiencies in the Reserve Account, shall
mean all of the revenues of the Issuer derived from sources other
than ad valorem taxation, other than enterprise fund revenues,
legally available to fund deficiencies in the Reserve Account,
subject to any prior liens or encumbrances on any portions
thereof, whether now existing or hereafter created."
E. Section 2.02 of the Resolution is hereby amended to
read as follows. The title of the Resolution is hereby amended
to reflect the increased authorized amount of bonds.
"SECTION 2.02 AUTHORIZATION OF BONDS. Subject and
pursuant to the provisions of this Resolution, obligations of the
Issuer to be known as 'Sales Tax Revenue Bonds, Series 1991,' are
hereby authorized to be issued in the aggregate principal amount
of not exceeding $43,500,000."
F. Section 2.03 of the Resolution is hereby amended to
read as follows:
"SECTION 2.03 DESCRIPTION OF BONDS. The Bonds shall be
dated, shall be issued in such denominations, shall bear interest
at not exceeding the maximum rate authorized by applicable law,
payable at such times, shall contain such other series
designations if the Bonds are issued in installments and shall
mature on such dates and in such years (not exceeding 15 years
from the date of levy of the Sales Tax, the final maturity at
least 6 months prior to termination of the Sales Tax) and in such
amounts; all as shall be fixed by subsequent resolution or
resolutions of the Board adopted at or prior to the sale of the
applicable series of the Bonds.
The Bonds shall be issued in fully registered form
without coupons; shall be issued as CUrrent Interest paying Bonds
or as Capital Appreciation Bonds, and as Serial Bonds or Term
Bonds, or a combination thereof; shall be payable with respect to
both principal and interest at such bank or banks to be
determined by the Issuer prior to the delivery of the Bonds;
shall be payable in lawful money of the United States of America;
and shall bear interest from their date or dates, payable by mail
to the Registered Owners at their addresses as they appear on the
registration books. If Term Bonds are issued, Amortization
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,Installments therefor may be fixed in the subsequent resolution
described above. If Capital Appreciation Bonds are issued,
Compounded Amounts therefor shall also be fixed in the subsequent
resolution described above.
Notwithstanding any other provisions of this section,
the Issuer may, at its option, prior to the date of issuance of
any Bonds, elect to use an immobilization system or pure book-
entry system with respect to issuance of the Bonds, provided
adequate records will be kept with respect to the ownership of
Bonds issued in book-entry form or the beneficial ownership of
Bonds issued in the name of a nominee. Under such circumstances
the Issuer is authorized to execute and deliver any letters of
representation or completed eligibility questionnaires necessary
to qualify for the book-entry program with The Depository Trust
Company, New York, New York, or any other recognized securities
depositories. As long as any Bonds are outstanding in book-entry
form, the provisions of Sections 2.04, 2.07 and 2.08 of this
Resolution may not be applicable to such book-entry Bonds; and
the provisions of this Section 2.03 may be modified as set forth
in the resolution described in the succeeding sentence. The
details of any alternative system of Bonds issuance, as described
in this paragraph, shall be set forth in a resolution of the
Board duly adopted at or prior to the sale of any of the Bonds."
G. Section 4.02D of the Resolution is hereby amended to
read as follows:
"D. RESERVE ACCOUNT. Pledged Funds shall then be
applied by the Issuer to maintain in the Reserve Account a sum
equal to the Reserve Account Requirement. Except as provided
below, such sum shall initially be deposited therein from the
proceeds of the sale of the Bonds. Any withdrawals from the
Reserve Account shall be restored from the first available
Pledged Funds after making the payments required above. No
further payments shall be required to be made into the Reserve
Account when there has been deposited therein and as long as
there shall remain on deposit therein a sum equal to the Reserve
Account Requirement. The Authorized Investments on deposit in
the Reserve Account shall be valued annually on the last day of
the Fiscal Year in accordance with generally accepted accounting
practice.
Notwithstanding the foregoing and with the written
consent of the Bond Insurer (if the outstanding Bonds are then
covered by a Bond Insurance Policy), the Issuer shall not be
required to fully capitalize the Reserve Account on the date of
issuance of the Bonds from proceeds of the sale of the Bonds, if
it provides on the date of issuance of the Bonds (1) bond reserve
insurance issued by a reputable and recognized municipal bond
insurer whose insurance policies generally result in insured
issues being rated in the highest rating category by both S&P and
Moody's, or (2) a letter of credit issued by any bank or national
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'banking association insured by FDIC whose own debt securities are
rated 'AA,' 'Aa' or the equivalent or better by both of the
rating agencies set forth above, in an amount equal to the
difference between the Reserve Account Requirement and the sum to
be deposited therein pursuant to the preceding paragraph.
At any time after the issuance of the Bonds, the Issuer
may, in its discretion, withdraw the amount of money on deposit
in the Reserve Account and substitute in its place, a bond
reserve insurance policy or unconditional letter of credit as
described in (1) or (2) of the preceding paragraph, in the face
amount of such withdrawal, and use the surplus money so withdrawn
for any lawful purpose specified by the Act.
Money in the Reserve Account shall be used only for the
purpose of the payment of maturing Amortization Installments or
principal of or interest on the Bonds when the other money
allocated to the Sinking Fund and Bond Amortization Account is
insufficient therefor, and for no other purpose. If and whenever
the money applied and allocated to the Reserve Account exceeds
the Reserve Account Requirement on all then outstanding Bonds,
such excess shall be withdrawn and deposited into the Sinking
Fund.
In the event the Issuer determines to draw upon any bond
reserve insurance policy, it shall cause the paying agent for the
Bonds to provide immediate notice of the same to the insurer.
The paying agent for the Bonds shall be required to
maintain adequate records to ascertain the necessity for a claim
or draw upon any bond reserve insurance policy, and the amounts
paid and owing the insurer under the terms of any reimbursement
agreement."
H. A new Section 4.021 is hereby added to read as
follows:
"I. COVENANT TO BUDGET AND APPROPRIATE. Until the
Bonds are paid or deemed paid pursuant to the provisions of this
Resolution, the Issuer hereby covenants (1) to budget and
appropriate in each Fiscal Year from Non-Ad Valorem Revenues,
sufficient money to fund any deficiency in the Reserve Account
existing on the first day of each Fiscal Year in the event
Pledged Funds are insufficient for such purpose, and (2) from
such appropriated funds to deposit into the Reserve Account, the
amount of any actual deficiency.
Such covenant on the part of the Issuer to budget and
appropriate such amounts of Non-Ad Valorem Revenues shall be
cumulative to the extent not paid, and shall continue until such
Non-Ad Valorem Revenues in amounts sufficient to make such
required deposit shall have been budgeted, appropriated and
actually deposited. Notwithstanding the foregoing covenant of
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3247/MON59008/AC7
, the Issuer, the Issuer does not covenant to maintain any services
or programs, now provided or maintained by the Issuer, which
generate Non-Ad Valorem Revenues.
Such covenant to budget and appropriate does not create
any lien upon or pledge of such Non-Ad Valorem Revenues, nor does
it preclude the Issuer from hereafter pledging its Non-Ad Valorem
Revenues, except as otherwise provided herein with respect to
subsequent covenants or pledges, nor does it require the Issuer
to levy and collect any particular Non-Ad Valorem Revenues.
Furthermore, such covenant is subject to the payment of
obligations previously issued by the Issuer, secured by a pledge
of and lien upon any Non-Ad Valorem Funds. However, such
covenant to budget and appropriate shall be subject in all
respects to the restrictions of Section 129.07, Florida statutes
(which provides that the governing body of each county make
appropriations for each fiscal year which, in anyone year, shall
not exceed the amount to be received from taxation or other
revenue sources); and to the payment of services and programs
which are for essential public purposes affecting the health,
welfare and safety of the inhabitants of the Issuer, or which are
legally mandated by applicable law."
I. Section 5.06 of the Resolution is hereby amended to
read as follows:
"ISSUANCE OF ADDITIONAL OBLIGATIONS. The Issuer hereby
covenants and agrees not to incur any other obligations or
indebtedness payable from the same source as the Bonds, unless
such obligations contain an express statement that such
obligations are junior and subordinate in all respects to the
Bonds as to lien on and source and security for payment from the
Pledged Funds. Consequently, no Additional parity Bonds, or
Bonds payable from the Pledged Funds prior to the Bonds, shall be
issued.
Furthermore, no additional obligations of the Issuer to
be secured by all or any portion of the Non-Ad Valorem Revenues
'Specific Lien Debt') or a covenant to budget and appropriate
from Non Ad-Valorem Revenues ('Budget Covenant Debt' and
collectively with Specific Lien Debt, 'Non-Ad Valorem Debt')
shall be issued unless the following conditions are met:
(1) The average of the total Non-Ad Valorem Revenues in
the preceding 2 Fiscal Years must equal or exceed 2 times the
maximum annual debt service on all outstanding and proposed Non-
Ad Valorem Debt.
(2) The total Non-Ad Valorem Revenues for the preceding
Fiscal Year, less (a) the debt service on outstanding and
proposed Specific Lien Debt for the next Fiscal Year, and (b) the
Non-Ad Valorem Revenue Share of Essential Services Expenditures,
must be at least 1.1 times the maximum annual debt service on all
outstanding and proposed Budget Covenant Debt.
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The term 'Non-Ad Valorem Revenue Share of Essential
Services Expenditures' shall be determined by multiplying the
total cost of Essential Services for the preceding Fiscal Year by
a fraction, the numerator of which is the total Non-Ad valorem
Revenues for the preceding Fiscal Year and the denominator of
which is total revenues for the preceding Fiscal Year.
The term 'Essential Services' shall include the total
expenditures by the Issuer for public safety and general
governmental purposes as reported in the annual audited financial
statements of the Issuer, or, if such audited financial
statements are unavailable, in other financial records of the
Issuer."
J. Section 6.01 of the Resolution is hereby amended to
read as follows:
"SECTION 6.01 MODIFICATION OR AMENDMENT. No adverse
material modification or amendment of this'Resolution or of any
ordinance or resolution amendatory hereof or supplemental hereto
may be made without the consent in writing of the Holders of 51%
or more in aggregate principal amount of all the Bonds so
affected by such modification or amendment; provided, however,
that no modification or amendment shall permit a change in the
maturity of the Bonds or a reduction in the rate of interest
thereon, or in the amount of principal obligation thereof, or
affect the promise of the Issuer to pay the principal of and
interest on the Bonds as the same shall become due from the
Pledged Funds, or reduce the percentage of the Holders of the
Bonds required to consent to any adverse material modification or
amendment hereof without the consent of the Holders of all Bonds;
provided further, however, that the Issuer may at any time amend
this Resolution to provide for the issuance or exchange of Bonds
in coupon form, if and to the extent that doing so will not
affect the tax exempt status of the interest on the Bonds. If
the Bonds then outstanding are insured by a Bond Insurance
Policy, the consent of the Bond Insurer shall be required in lieu
of the consent of the Holders of the Bonds so insured, and under
such circumstances a copy of such amendments shall be sent to
S&P. For the purpose of computing the amount of Bonds held by
the Holder of Capital Appreciation Bonds, the principal amount of
a Capital Appreciation Bond shall be deemed to be its Compounded
Amount."
SECTION 4. SEVERABILITY OF INVALID PROVISIONS. If any
one or more of the provisions contained in this resolution 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 provisions shall be null and void and shall be
deemed separable from the remaining provisions, and shall in no
way affect the validity of any of the other provisions hereof.
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3Z47/MON59006/AC7
SECTION 5. REPEALING CLAUSE. All resolutions or parts
thereof of the Governing Body in conflict with the provisions
contained in this resolution are, to the extent of such conflict,
hereby superseded and repealed.
SECTION 6. EFFECTIVE DATE. This resolution shall take
effect immediately upon its adoption.
Passed and adopted by
of Monroe County, Florida, at
October 8, 1991.
the Board of County Commissioners
a special meeting of the Board on
(SEAL)
ATTEST :DANNY La. ICOUIAGE, Clerk
MONROE COUNTY, FLORIDA
By .\.t.:)..t\~"'~ '"-~~
Mayor, Board of County
Commissioners
,..,
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3247/MON59006/AC7