2012-06ORDINANCE NO. 2012-06
AN ORDINANCE OF THE CITY OF AVENTURA,
FLORIDA, AUTHORIZING THE ISSUANCE OF NOT
TO EXCEED $10,000,000 IN AGGREGATE
PRINCIPAL AMOUNT OF OBLIGATIONS OF THE
CITY TO REFINANCE THE ACQUISITION AND
CONSTRUCTION OF VARIOUS CAPITAL
IMPROVEMENTS AND TO PAY COSTS AND
EXPENSES OF ISSUING SUCH OBLIGATIONS;
PROVIDING FOR A COVENANT TO BUDGET AND
APPROPRIATE LEGALLY AVAILABLE NON -AD
VALOREM FUNDS EACH YEAR TO PAY THE
PRINCIPAL OF, REDEMPTION PREMIUM, IF ANY,
AND INTEREST ON THE OBLIGATIONS;
PROVIDING FOR THE RIGHTS OF THE HOLDERS
OF SUCH OBLIGATIONS; PROVIDING
SEVERABILITY AND AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
AVENTURA, FLORIDA:
SECTION 1. DEFINITIONS. When used in this Ordinance, the following
terms shall have the following meanings, unless some other meaning is plainly intended:
"City" shall mean the City of Aventura, Florida, a municipal corporation
established by the State of Florida.
"Commission" shall mean the City Commission of the City of Aventura, Florida.
"Non -Ad Valorem Funds" shall mean all revenues of the City derived from any
source other than ad valorem taxation on real or personal property, which are legally
available to make the payments required in this Ordinance.
"Obligations" shall mean the bonds, notes, certificates or other evidence of
indebtedness issued by the City pursuant to this Ordinance.
"Ordinance" shall mean this Ordinance enacted by the Commission, as amended
and supplemented from time to time.
"Refunded Debt" shall mean the obligations of the City pursuant to a Loan
Agreement, dated as of September 1, 2002, between the Florida Intergovernmental
Finance Commission and the City.
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"Resolution" shall mean the resolution authorizing the issuance of all or a portion
of the Obligations and setting forth the terms and details of such Obligations as described
in Section 4.
Words importing the singular number include the plural number, and vice versa.
SECTION 2. FINDINGS. The Commission finds and determines that:
(A) It is in the interests of the City to refinance the Refunded Debt in order to
achieve debt service savings.
(B) The most efficient and cost - effective method of refinancing the Refunded
Debt is by the issuance of the Obligations secured by Non -Ad Valorem Funds in the
manner set forth in Section 5 of this Ordinance and in the Resolution.
(C) The principal of, redemption premium, if any, and interest on the
Obligations shall be paid from Non -Ad Valorem Funds. The City shall never use or be
required to use any ad valorem taxes for the payment of the Obligations. The Obligations
shall not constitute a general obligation of the City or a pledge of its faith and credit, nor
shall the holders of the Obligations have any lien or encumbrance on any property owned
by the City, including the Project.
SECTION 3. AUTHORIZING THE REFINANCING OF THE
REFUNDED DEBT. The Commission authorizes and approves the refinancing of the
Refunded Debt.
SECTION 4. ISSUANCE OF THE OBLIGATIONS. The Obligations
are authorized to be issued at one or more times in an aggregate principal amount of not
exceeding $10,000,000. The particular designation of each Obligation shall be made in
the Resolution. The Obligations shall be issued for the principal purposes of (A)
refinancing the Refunded Debt, (B) establishing debt service reserves, if deemed
necessary by the Commission, and (C) paying costs and expenses of issuing the
Obligations. The principal of, redemption premium, if any, and interest on the
Obligations shall be payable solely from Non -Ad Valorem Funds, in the manner set forth
in Section 5 of this Ordinance and in the Resolution.
The Obligations shall be dated such date or dates, shall bear interest at such rate or
rates, shall mature at such time or times and in such amount or amounts as may be
determined in the Resolution, and may be redeemable before maturity, at the option of
the City, at such price or prices and under such terms and conditions as may be fixed in
the Resolution. The Commission shall determine in the Resolution the form of the
Obligations, the manner of executing such Obligations, and such other terms and
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provisions of the Obligations as it deems appropriate. The Obligations shall bear interest
at a fixed rate, as shall be determined in the Resolution. In case any officer whose
signature or a facsimile of whose signature shall appear on any Obligation shall cease to
be such officer before the delivery of such Obligation, such signature or such facsimile
shall nevertheless be valid and sufficient for all purposes the same as if he or she had
remained in office until such delivery. The Commission shall sell the Obligations in such
manner and for such price as it determines in the Resolution to be in the best interests of
the City.
The Obligations may be issued without any other proceedings or the happening of
any other conditions or things other than the adoption of the Resolution.
The proceeds of the Obligations shall be disbursed in such manner and under such
restrictions, if any, as may be provided in the Resolution.
The Resolution shall include, but without limitation, provisions as to the rights and
remedies of the holders of the Obligations, the application of funds, the flow of funds and
such other matters as are customarily in such an instrument. The Resolution may provide
for the City entering into one or more loan or other financing agreements with the
purchaser of the Obligations.
SECTION 5. COVENANT TO BUDGET AND APPROPRIATE. The
City may covenant and agree pursuant to a Resolution to appropriate in its annual budget,
by amendment, if necessary, from Non -Ad Valorem Funds lawfully available in each
fiscal year, amounts sufficient to pay the principal of, redemption premium, if any, and
interest on any Obligation when due each fiscal year. Such covenant and agreement on
the part of the City to budget and appropriate such amounts of Non -Ad Valorem Funds
shall be cumulative to the extent not paid, and shall continue until such Non -Ad Valorem
Funds or other legally available funds in amounts sufficient to make all such required
payments shall have been budgeted, appropriated and actually paid. Notwithstanding the
foregoing, the City has not covenanted to maintain any services or programs, now
provided or maintained by the City, which generate Non -Ad Valorem Funds.
Such covenant to budget and appropriate shall not create any lien upon or pledge
of such Non -Ad Valorem Funds, nor shall it preclude the City from pledging in the future
its Non -Ad Valorem Funds, nor shall it require the City to levy and collect any particular
Non -Ad Valorem Funds, nor shall it give the holders of any Obligations a prior claim on
the Non -Ad Valorem Funds as opposed to claims of general creditors of the City. Such
covenant to appropriate Non -Ad Valorem Funds shall be subject in all respects to the
payment of obligations secured by a prior or future pledge of such Non -Ad Valorem
Funds (including the payment of debt service on bonds and other debt instruments).
However, the covenant to budget and appropriate in its annual budget for the purposes
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and in the manner stated in this Ordinance and in the Resolution shall have the effect of
making Non -Ad Valorem Funds available for the payment of the Obligations, and
placing on the City a positive duty to appropriate and budget, by amendment, if
necessary, Non -Ad Valorem Funds sufficient to meet its obligations under this Ordinance
and the Resolution; subject, however, in all respects to the restrictions of Section
166.241, Florida Statutes; and, to the extent and only to the extent necessary to avoid a
violation of Article VII, Section 12 of the Florida Constitution, subject, further, to the
payment of services and programs which are for essential public purposes of the City or
which are legally mandated by applicable law.
SECTION 6. TAXING POWER NOT PLEDGED. The Obligations
issued under the provisions of this Ordinance shall not be deemed to constitute a pledge
of the faith and credit of the City, but the Obligations and repayment shall be payable
from the Non -Ad Valorem Funds in the manner provided in this Ordinance and the
Resolution. The issuance of the Obligations under the provisions of this Ordinance shall
not directly, indirectly or contingently obligate the City to levy or to pledge any form of
ad valorem taxation. The holder of the Obligations shall never have the right to compel
any exercise of the ad valorem taxing power on the part of the City to pay the Obligations
or the interest on the Obligations against any property of the City, nor shall the
Obligations constitute a charge, lien or encumbrance, legal or equitable, upon any
property of the City.
SECTION 7. REMEDIES OF HOLDERS OF OBLIGATIONS. The
holders of the Obligations, except to the extent the rights given to them pursuant to this
Ordinance may be restricted by the Resolution, may, whether at law or in equity, by suit,
action, mandamus or other proceeding, protect and enforce any and all rights under the
laws of the State of Florida or granted under this Ordinance or under the Resolution, and
may enforce and compel the performance of all duties required by this Ordinance or by
such Resolution, to be performed by the City.
SECTION 8. ALTERNATIVE METHOD. This Ordinance shall be
deemed to provide an additional and alternative method for the doing of things authorized
hereby and shall be regarded as supplemental and additional to powers conferred by other
laws, and shall not be regarded as in derogation of any powers now existing or which
may hereafter come into existence. This Ordinance, being necessary for the welfare of
the inhabitants and/or property owners of the City, shall be liberally construed to effect
its purposes.
SECTION 9. GENERAL AUTHORITY. The members of the
Commission of the City and the officers, attorneys and other agents or employees of the
City are authorized to do all acts and things required of them by this Ordinance, or
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desirable or consistent with its requirements for the full punctual and complete
performance of all the terms, covenants and agreements contained in this Ordinance.
SECTION 10. SEVERABILITY. If any section, paragraph, clause or
provision of this Ordinance shall be held to be invalid for any reason, such invalidity
shall not effect the validity or enforcement of any of the remaining provisions. This
Ordinance shall take precedence over any other ordinance or resolution of the City to the
extent of any conflict or inconsistency with each.
SECTION 11. EFFECTIVE DATE. This Ordinance shall take effect
immediately upon its enactment on the second reading.
The foregoing Ordinance was offered by Commissioner Joel, who moved its
adoption on first reading. The motion was seconded by Commissioner Auerbach, and
upon being put to a vote, the vote was as follows:
Commissioner Zev Auerbach
yes
Commissioner Bob Diamond
yes
Commissioner Billy Joel
yes
Commissioner Michael Stern
yes
Commissioner Luz Urbaez Weinberg
yes
Vice Mayor Teri Holzberg
yes
Mayor Susan Gottlieb
yes
The foregoing Ordinance was offered by Commissioner Diamond who moved its
adoption on second reading. The motion was seconded by Commissioner Auerbach and
upon being put to a vote, the vote was as follows:
Commissioner Zev Auerbach
yes
Commissioner Bob Diamond
yes
Commissioner Billy Joel
yes
Commissioner Michael Stern
yes
Commissioner Luz Urbaez Weinberg
absent
Vice Mayor Teri Holzberg
yes
Mayor Susan Gottlieb
yes
PASSED AND ADOPTED on first reading this 5th day of June, 2012.
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PASSED AND ADOPTED on second reading this 14" day of June, 2012.
SUSAN GOTTLIEB, MAYOR
ATTEST:
JA
, 'r ' • %' • MMC, CITY • D '
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
CITY ATTORNEY
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