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HomeMy WebLinkAbout1991-080INDIAN RIVER COUNTY, FLORIDA RESOLUTION NO. 91 - 80 A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE AGREEMENT FOR THE AWARD AND SALE OF $6,015,000 AGGREGATE PRINCIPAL AMOUNT OF RECREATIONAL REVENUE BONDS, SERIES 1991, OF INDIAN RIVER COUNTY, FLORIDA, AT PRIVATE SALE BY NEGOTIATION, TO THE PURCHASER THEREOF; AUTHORIZING AND APPROVING CERTAIN TERMS OF SAID BONDS; PROVIDING FOR CERTAIN MATTERS RELATING TO THE BONDS; APPOINTING A PAYING AGENT AND BOND REGISTRAR FOR THE BONDS; RATIFYING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT; AUTHORIZING THE EXECUTION AND DISTRIBUTION OF AN OFFICIAL STATEMENT IN CONNECTION WITH THE MARKETING OF THE BONDS; AUTHORIZING ALL OTHER NECESSARY, DESIRABLE AND/OR APPROPRIATE ACTIONS IN CONNECTION WITH THE SALE, ISSUANCE AND DELIVERY OF THE BONDS; AND SPECIFYING THE EFFECTIVE DATE HEREOF. WHEREAS, the Board of County Commissioners of Indian County, Florida (the "Board" and the "Count ti;i respectively), :solution No. 91-70, duly adopted on June 18, 1991, as amended "Resolution"), authorized the issuance of Recreational me Bonds, Series 1991, of the County in an aggregate principal it not to exceed $6,500,000 (the "Bonds"), as Additional y Obligations under and pursuant to Resolution No. 85-78 of !flaunty, as amended and supplemented; WHEREAS, the County deems it in its long term best est that the Bonds be sold at this time at private sale by Ration; WHEREAS, it is necessary and desirable to authorize and approve certain terms and provisions with respect to the Bonds and the sale thereof; WHEREAS, the County desires to appoint a Paying Agent and Bond Registrar for the Bonds, to ratify the distribution of a Preliminary Official Statement and to authorize the execution and distribution of an Official Statement therefor; and WHEREAS, William R. Hough & Co., (the "Purchaser"), has offered to purchase the Bonds on the terms and conditions hereinafter described. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA: SECTION 1. The Bonds shall be in the aggregate principal amount of $6,015,000, shall be dated as of August 1, 1991, shall be in fully registered form, shall be in denominations of $5,000 or any integral multiple thereof, shall bear interest payable semiannually on March 1 and September 1 of each year, commencing March 1, 1992, until the principal amount thereof is paid, by check mailed by the Paying Agent to the Registered Owner thereof at his address as the same appear on the registration books kept by the Bond Registrar on behalf of the County at 5:00 p.m. local time at the location of the Bond Registrar on the fifteenth (15th) day of the month immediately preceding the applicable interest payment date, at the interest rates per annum set forth in the Bond Purchase Agreement hereinafter referred to, shall mature on September 1 of the years and in the principal amounts set forth in the Bond Purchase Agreement and shall be 2 INDIAN RIVER COUNTY, FLORIDA RESOLUTION NO. 91 - 80 A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE AGREEMENT FOR THE AWARD AND SALE OF $6,015,000 AGGREGATE PRINCIPAL AMOUNT OF RECREATIONAL REVENUE BONDS, SERIES 1991, OF INDIAN RIVER COUNTY, FLORIDA, AT PRIVATE SALE BY NEGOTIATION, TO THE PURCHASER THEREOF; AUTHORIZING AND APPROVING CERTAIN TERMS OF SAID BONDS; PROVIDING FOR CERTAIN MATTERS RELATING TO THE BONDS; APPOINTING A PAYING AGENT AND BOND REGISTRAR FOR THE BONDS; RATIFYING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT; AUTHORIZING THE EXECUTION AND DISTRIBUTION OF AN OFFICIAL STATEMENT IN CONNECTION WITH THE MARKETING OF THE BONDS; AUTHORIZING ALL OTHER NECESSARY, DESIRABLE AND/OR APPROPRIATE ACTIONS IN CONNECTION WITH THE SALE, ISSUANCE AND DELIVERY OF THE BONDS; AND SPECIFYING THE EFFECTIVE DATE HEREOF. WHEREAS, the Board of County Commissioners of Indian River County, Florida (the "Board" and the "Count" respectively), by Resolution No. 91-70, duly adopted on June 18, 1991, as amended (the "Resolution"), authorized the issuance of Recreational Revenue Bonds, Series 1991, of the County in an aggregate principal amount not to exceed $6,500,000 (the "Bonds"), as Additional Parity Obligations under and pursuant to Resolution No. 85-78 of the County, as amended and supplemented; WHEREAS, the County deems it in its long term best interest that the Bonds be sold at this time at private sale by negotiation; WHEREAS, it is necessary and desirable to authorize and subject to optional and mandatory redemption as set forth in the Bond Purchase Agreement. SECTION 2. C&S/Sovran Trust Company (Florida), Nationa Association, Fort Lauderdale, Florida, is hereby appointed Paying Agent and Bond Registrar for the Bonds. SECTION 3. The Bonds are hereby awarded and sold to th, Purchaser at a total price of $5,877,154.05 (the aggregate principal amount less underwriter's discount of $72,180.00 and original issue discount of $65,665.95) plus accrued interest from August 1, 1991 to the date of delivery thereof. The Bond Purchase Agreement dated July 23, 1991 by and between the Purchaser and the County, in the form attached hereto as Exhibit A (the "Bond Purchase Agreement"), is hereby approved and accepted and the proper officers of the County are authorized and directed to execute the acceptance thereof in the space provided therefor on the Bond Purchase Agreement. SECTION 4. Pursuant to Section 12A of the Resolution, the deposit of $743,207.75 of the proceeds from the sale of the Bonds, together with the accrued interest on the Bonds, into the 1991 Sinking Fund created and established under the Resolution is hereby authorized and directed. SECTION 5. Pursuant to Section 12B of the Resolution, the deposit of $522,475.00 of the proceeds from the sale of the Bonds into the 1991 Reserve Account created and established under the Resolution is hereby authorized and directed. SECTION 6. Pursuant to Section 9 of the Resolution, the 3 subject to optional and mandatory redemption as set forth in the Bond Purchase Agreement. SECTION 2. C&S/Sovran Trust Company (Florida), National Association, Fort Lauderdale, Florida, is hereby appointed Paying Agent and Purchaser principal Bond Registrar for the Bonds. SECTION 3. The Bonds are hereby awarded and sold at a total price of $5,877,154.05 (the aggregate amount less underwriter's discount of $72,180.00 and to the original issue discount of $65,665.95) plus accrued interest from August 1, 1991 to the date of delivery thereof. The Bond Purchase Agreement dated July 23, 1991 by and between the Purchaser and the County, in the form attached hereto as Exhibit A (the "Bond Purchase Agreement"), is hereby approved and accepted and the proper officers of the County are authorized and directed to execute the acceptance thereof in the space provided therefor on the Bond Purchase Agreement. SECTION 4. Pursuant to Section 12A of the Resolution, the deposit of $743,207.75 of the proceeds from the sale of the Bonds, together with the accrued interest on the Bonds, into the 1991 Sinking Fund created and established under the Resolution is hereby authorized and directed. SECTION 5. Pursuant to Section 12B of the Resolution, the deposit of $522,475.00 of the proceeds from the sale of the Bonds into the 1991 Reserve Account created and established under the Resolution is hereby authorized and directed. SECTION 6. Pursuant to Section 9 of the Resolution, the 3 income from investment of the 1991 Sinking Fund accrued through August 31, 1993 shall be deposited into the 1991 Rebate Account to the extent required and the excess, if any, into the 1991 Sinking Fund. SECTION 7. The purchase of municipal bond insurance with respect to the Bonds from AMBAC Indemnity Corporation is hereby authorized and directed. The Chairman, the Vice Chairman and the Clerk of the Board and the proper officers of the County are each hereby authorized to take all actions on behalf of the County as may be necessary, desirable and/or appropriate in connection with such insurance, including without limitation the payment of the premium therefor. SECTION 8. The Preliminary Official Statement with respect to the Bonds, a copy of which is attached to the Bond Purchase Agreement (the "Preliminary Official Statement"), is hereby approved and ratified by the County, and the County hereby approves and ratifies the use by the Purchaser of the Preliminary Official Statement in connection with the sale and public re- offering of the Bonds. The Official Statement with respect to the Bonds, in substantially the form of the Preliminary Official Statement, with such omissions, insertions and variations as may be necessary and/or desirable and approved by the Chairman of the Board prior to the execution thereof (the "Official Statement"), is hereby approved by the County and the proper officers of the County are hereby authorized to execute the Official Statement and to deliver the same to the Purchaser for use by it in connection with 4 the sale and distribution of the Bonds, the necessity and/or desirability and approval of any such omissions, insertions and variations as may be reflected in the Official Statement shall be conclusively presumed by such execution and delivery. SECTION 9. The proper officers of this County are hereby authorized and directed to execute the Bonds, when prepared, by manual or facsimile signatures, and to deliver the same to the Purchaser upon payment of the purchase price without further authority from the Board. SECTION 10. It is hereby found, ascertained, determined and declared by the Board that a negotiated sale of the Bonds is in the long term best interest of the County. SECTION 11. In compliance with Subsection 218.385(4), Florida Statutes, as amended, there has been provided to the County, prior to the adoption of this Resolution, a disclosure statement containing the information required by paragraphs (a) through (g) of said Subsection 218.385(4). A copy of said disclosure statement is attached hereto as Exhibit B. SECTION 12. The proper officers of the County are hereby authorized and directed to execute and deliver on behalf of the County a Rebate Compliance Certificate, in order to comply with certain provisions of the Internal Revenue Code of 1986, as amended, with respect to the Bonds. The Chairman of the Board and the County Attorney are each designated agents of the County in connection with the execution and delivery of said Rebate Compliance Certificate, and are authorized and empowered, 5 collectively or individually, to take all other actions as may be necessary or appropriate to execute and deliver the same. SECTION 13. The Chairman, the Vice -Chairman and the Clerk of the Board and the proper officers of the County are each hereby authorized to take all other actions on behalf of the County as may be necessary, desirable and/or appropriate in connection. herewith and with the sale, issuance and delivery of the Bonds, including without limitation to execute and deliver any and all documents and instruments on behalf of the County. SECTION 14. This Resolution shall take effect immediately upon its adoption. 6 The foregoing resolution was offered by Commissioner Scurlock who moved for its adoption. The motion was seconded by Commissioner Eggert and, upon being put to a vote, the vote was as follows: Chairman Richard N. Bird Vice Chairman Gary C. Wheeler Commissioner Margaret C. Bowman Commissioner Carolyn K. Eggert Commissioner Don C. Scurlock,Jr• Aye Aye Aye Aye Aye The Vice Chairman thereupon declared the Resolution duly passed and adopted this 23 day of Jta y , 1991. (SEAL) Jeffrey K. `Bart, 91eerkk APPROVED Alf' TO FORM AND LEGAL SUFFICIEN Charles P. Vitunac County Attorney BOARD OF COUNTY COMMISSIONERS OF INDIAN RIV R COUNTY, FLORIDA By: 7 Chairman Richard 1.4 A l v r 0.0 ere s r,., No $6,015,000 INDIAN RIVER COUNTY, FLORIDA, RECREATIONAL REVENUE BONDS, SERIES 1991 BOND PURCHASE AGREEMENT Board of County Commissioners of Indian River County 1840 25th Street Vero Beach, Florida 32960 Ladies and Gentlemen: The undersigned, WILLIAM R. HOUGH & CO. (the "Underwriter") offers to enter into this Bond Purchase Agreement with you, the Board of County Commissioners of Indian River County, Florid, (the "Issuer"), which upon the Issuer's acceptance hereof will b, binding upon the Issuer and the Underwriter. This offer is mads subject to the written acceptance of this Bond Purchase Agreemen' by the Issuer and the delivery of such acceptance to the Underwrite; on or prior to midnight on July 23, 1991, the date of this Bon Purchase Agreement. 1. Upon the terms and conditions and upon the basis of the representations and warranties hereinafter set forth, thi Underwriter hereby agrees to purchase from the Issuer, and the Issuer hereby agrees to sell to the Underwriter, for reofferin to the public all (but not less than all) of $6,015,000 aggregat principal amount of the Issuer's Recreational Revenue Bonds Series 1991 (the "Bonds"). The Bonds will bear interest at the rates and mature and be subject to redemption at the times and k the principal amounts set forth in the Term Sheet attached a Exhibit "A" hereto. The purchase price of the Bonds shall bi $5,877,154.05 (the aggregate principal amount less underwriter'; discount of $72,180 and original issue discount of $62,665.95) plus accrued interest in the amount of $22,060.49 from August 1 1991, to the Closing Date (as defined herein). 2. The Bonds shall be as described in and shall be issu pursuant to the general bond resolution adopted by the Issuer o; July 17, 1985, as amended, and the resolutions amending an supplementing the above -referenced general bond resolutio adopted by the Issuer on June 18, 1991 and July 23, 199 (collectively, the "Resolution"). The Bonds will be issue under, pursuant to and in full compliance with Chapter 125 Florida Statutes (1989) and other applicable provisions o Florida law, Indian River County Ordinance No. 77-19 (collectively the "Act"), and this Bond Purchase Agreement. The Bonds will be issued for the following purposes: (i constructing an eighteen hole addition to the Issuer's Sandridg '/fAdit A le IUO, 7, -50 $6,015,000 INDIAN RIVER COUNTY, FLORIDA, RECREATIONAL REVENUE BONDS, SERIES 1991 BOND PURCHASE AGREEMENT Board of County Commissioners of Indian River County 1840 25th Street Vero Beach, Florida 32960 Ladies and Gentlemen: The undersigned, WILLIAM R. HOUGH & CO. (the "Underwriter"), offers to enter into this Bond Purchase Agreement with you, the Board of County Commissioners of Indian River County, Florida (the "Issuer"), which upon the Issuer's acceptance hereof will be binding upon the Issuer and the Underwriter. This offer is made subject to the written acceptance of this Bond Purchase Agreement by the Issuer and the delivery of such acceptance to the Underwriter on or prior to midnight on July 23, 1991, the date of this Bond Purchase Agreement. 1. Upon the terms and conditions and upon the basis of the representations and warranties hereinafter set forth, the Underwriter hereby agrees to purchase from the Issuer, and the Issuer hereby agrees to sell to the Underwriter, for reoffering to the public all (but not less than all) of $6,015,000 aggregate principal amount of the Issuer's Recreational Revenue Bonds, Series 1991 (the "Bonds"). The Bonds will bear interest at the rates and mature and be subject to redemption at the times and in the principal amounts set forth in the Term Sheet attached as Exhibit "A" hereto. The purchase price of the Bonds shall be $5,877,154.05 (the aggregate principal amount less underwriter's discount of $72,180 and original issue discount of $6.,665.95), plus accrued interest in the amount of $22,060.49 from August 1, 1991, to the Closing Date (as defined herein). 2. The Bonds shall be as described in and shall be ise11 d pursuant to the general bond resolution adopted by the Issuer on July 17, 1985, as amended, and the resolutions amending and supplementing the above -referenced general bond resolution adopted by the Issuer on June 18, 1991 and July 23, 1991 (collectively, the "Resolution"). The Bonds will be issued under, pursuant to and in full compliance with Chapter 125, Florida Statutes (1989) and other applicable provisions of Florida law, Indian River County Ordinance No. 77-19 (collectively, the "Act"), and this Bond Purchase Agreement. The Bonds will be issued for the following purposes: (i) constructing an eighteen hole addition to the Issuer's Sandridge Golf Course, (ii) establishing a reserve fund for the Bonds, and (iii) paying the costs of issuance of the Bonds. The Bonds will be insured by a municipal bond insurance policy (the "Insurance Policy") to be issued by AMBAC Indemnity Corporation (the "Insurer") at closing. 3. The Underwriter represents that it is registered under the Securities Exchange Act of 1934 as a municipal securities dealer. 4. The Underwriter agrees to make a bona fide public offering of all the Bonds to the general public at the initial public offering prices set forth in Exhibit "A" hereto; provided, however, that the Underwriter reserves the right to sell the Bonds to municipal securities dealers, brokers, or similar persons acting in the capacity of underwriters or wholesalers at prices lower than the initial public offering prices. Subsequent to such initial offering, the Underwriter reserves the right to change such initial public offering price as it deem necessary in conjunction with the marketing of the Bonds. The Underwriter shall furnish the Issuer and Bond Counsel (as herein defined), at closing, (1) a certificate satisfactory in form and substance to Bond Counsel to the effect that each maturity of the Bonds was the subject of a bona fide public offering and stating the initial or revised initial reoffering prices at which at least a substantial amount of each maturity of the Bonds was sold to the public (excluding bond houses, brokers and similar persons or entities acting in the capacity of underwriters or wholesalers), and (2) such other information as the Issuer or Bond Counsel may request to establish or assure compliance with the Internal Revenue Code of 1986, as amended, and the regulations thereunder pertaining to tax-exempt obligations such as the Bonds. 5. Within seven (7) business days after the Issuer's acceptance hereof, the Issuer will deliver to the Underwriter: (A) One certified copy of the Resolution; (B) One executed copy of the Official Statement of the Issuer with only such changes, alterations and corrections as may be approved pursuant to the Resolution (which, together with all appendices thereto, is herein called the "Official Statement"); (C) One certified copy of the ordinance or resolution of the Issuer establishing the Issuer's schedule of rates, charges and fees for use of the golf course (the "Rate Ordinance"); 2 that: (D) One copy of financial statements of the Issuer for its fiscal years ended September 30, 1990 and September 30, 1989, respectively, certified by a firm of certified public accountants to have been prepared in accordance with generally accepted accounting principles consistently applied; (E) One certified copy of a final judgment of the 18th Judicial Circuit, in and for Indian River County, Florida, validating the Series 1991 Bonds; and (F) One copy, executed by the Issuer, of this Bond Purchase Agreement. The Issuer will also make the Preliminary Official Statement of the Issuer dated July 17, 1991 (which, together with all appendices thereto, is called the "Preliminary Official Statement") and the final Official Statement available to the Underwriter in sufficient quantities and in sufficient time to enable the Underwriter to comply with Reg. 240.15c2 - 12(b) of the Code of Federal Regulations. The Issuer hereby ratifies and consents to the use by the Underwriter prior to the date hereof of the Preliminary Official Statement, in connection with the initial public offering of the Bonds; 6. The Issuer represents and warrants to the Underwriter (A) The Preliminary Official Statement was, as of its date and is, as of the date hereof (other than as modified in the Official Statement), and the Official Statement will be as of its date, and at all times subsequent thereto up to and including the Closing Date, true and complete in all material respects, contains and will at all such times contain no untrue statement of any material fact, and did not and will not at any such time omit to state a material fact necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading; provided, however, that the Issuer makes no representation or warranty as to the information contained in the Preliminary Official Statement or the Official Statement under the captions "MUNICIPAL BOND INSURANCE" and "TAX EXEMPTION". The Issuer deems the Preliminary Official Statement to have been "final" as of its date, except for the omission of the information permitted to be omitted by Reg. 240.15c2 - 12(b)(1), Code of Federal Regulations, and except for revisions due to changes in circumstances arising subsequent to the date of the Preliminary Official Statement. (B) The Issuer is, and will be on the Closing Date, validly existing as a county and a political subdivision under the laws of the State of Florida, having the powers and authority set forth in the Act and the Resolution; 3 (C) (i) The Issuer has, and on the Closing Date will have, full legal right, power and authority to enter into this Bond Purchase Agreement, and this Bond Purchase Agreement has been duly executed and delivered to the Underwriter and constitutes a valid, binding and enforceable obligation of the Issuer; (ii) the Issuer has, and on the Closing Date will have, full legal right, power and authority to issue and sell the Bonds to the Underwriter, to perform its obligations thereunder, and to carry out and effectuate the transactions contemplated by this Bond Purchase Agreement, the Official Statement, the Paying Agent and Registrar Agreement for the Bonds, dated as of August 1, 1991 (the "Registrar Agreement") between the Issuer and C&S/Sovran Trust Company (Florida), N.A., Fort Lauderdale, Florida, as Registrar and Paying Agent (the "Registrar"), the Resolution and the Rate Ordinance, (the aforementioned instruments being collectively referred to herein as the "Instruments")and all other documents necessary in connection with the issuance and sale of the Bonds; and (iii) on or prior to the Closing Date, the Issuer will have taken all actions required to be taken by it to authorize the issuance, delivery and performance of the Bonds, the execution and delivery of the Official Statement, the execution, delivery and performance of the Instruments and the consummation by it of all transactions required to be taken by it in connection with the issuance of the Bonds; (D) The Issuer has complied, and on the Closing Date will be in compliance, in all material respects, with the terms of the Act and the Constitution and laws of the State of Florida and with the obligations on its part contained in this Bond Purchase Agreement; (E) Both on the date hereof and on the Closing Date, there will not have been any material adverse occurrence in the results of operations or financial condition, affairs or prospects of the Issuer, except as disclosed in the Official Statement, as amended, if necessary; (F) On the Closing Date, no consent, approval, authorization or order of, or filing, registration or declaration with, any court or governmental agency or body will be required for the sale, issuance or delivery of the Bonds to the Underwriter or the consummation of the transactions contemplated by this Bond Purchase Agreement except for such filings or notices to the Division of Bond Finance of the Department of General Services required pursuant to Florida Statutes, Sections 218.38 and 218.385, as amended, and except for such actions as may be necessary to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and jurisdictions 4 of the United States of America as the Underwriter may designate; (G) On the date of acceptance hereof and on the Closing Date, except as disclosed in the Official Statement, no action, suit, proceedings, or investigation is or will be pending or, to the knowledge of the Issuer, threatened against the Issuer (i) in any way affecting the existence of the Issuer or in any way challenging the respective powers of the several offices of the officials of the Issuer or the titles of the officials holding their respective offices; or (ii) seeking to restrain or enjoin the issuance or delivery of any of the Bonds, or the collection of the Gross Revenues, the Racetrack Funds and Jai Alai Fronton Funds, and the Sales Tax (all as defined in the Resolution) or in any way contesting or affecting the validity or enforceability of the Instruments or the Bonds, or contesting in any way the completeness or accuracy of the Official Statement, or contesting the powers of the Issuer or its authority with respect to the Instruments or the Bonds; (iii) questioning or affecting the validity of any of the proceedings relating to the authorization, sale, execution, issuance or delivery to the Underwriter of the Bonds; or (iv) in which a final adverse decision would (a) materially adversely affect the ability of the Issuer to issue the Bonds or (b) declare any of the Instruments or the Bonds to be invalid and unenforceable in whole or in material part; (H) The Bonds, when delivered and sold to the Underwriter as provided herein, will have been duly authorized and executed and will constitute validly issued and binding obligations of the Issuer in conformity with, and entitled to the benefit and security of, the Act and the Resolution; (I) The Instruments are in full force and effect; (J) The Issuer has good and lawful authority to manage and operate the Sandridge Golf Course facility (the "Project") and to establish and collect the Gross Revenues and to perform all of its obligations under the Resolution; (K) From the time of the Issuer's acceptance hereof through the Closing Date, except as described in the Official Statement, the Issuer will not have incurred any material liabilities, direct or contingent, or entered into any material transaction with respect to its operations and there shall not have been any material adverse change in the condition, financial or physical, of the Issuer other than changes in the ordinary course of business or in the normal operation of the facilities operated by the Issuer; and 5 (L) (i) The Issuer, to the best of its knowledge and belief, is not in material breach or default under any applicable constitutional provision, law or administrative regulation of the State or the United States, or any applicable judgment or decree, or any loan agreement, indenture, bond, note, or ordinance or resolution, agreement or other instrument to which the Issuer is a party or to which the Issuer or any of its property or assets is otherwise subject, and no event has occurred and is continuing which, with the passage of time or the giving of notice or both, would constitute a material default or event of default under any of the foregoing; and (ii) the execution and delivery of the Bonds, the adoption of the Resolution, the execution and delivery of the other Instruments, and compliance with the obligations on the Issuer's part contained in all of the foregoing, did not as of their respective dates, and will not as of the Closing Date conflict with or constitute a material breach of or default under any constitutional provision, law, administrative regulation, judgment, decree, agreement, indenture, bond, note, resolution, ordinance, agreement, or any other instrument to which the Issuer is a party or to which the Issuer or any of its property or assets is otherwise subject. Such execution, delivery, adoption or compliance will not result in the creation or imposition of any lien, charge, or other security interest or encumbrance of any nature whatsoever upon any of the property or assets of the Issuer or under the terms of any such law, regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, ordinance, agreement or other instrument, except as provided by the Bonds and the Resolution. (M) The Issuer will furnish such information, execute such instruments, and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request in order to (i) qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States of America as the Underwriter may designate, and (ii) determine the eligibility of the Bonds for investment under the laws of such states or other jurisdictions, and will use its best efforts to continue such qualifications in effect as long as required for the distribution of the Bonds; provided, however, that the Issuer shall not be required to execute a general or special consent to service of process or qualify to do business in connection with any such qualification or determination in any jurisdiction where it is not now so subject or qualified. (N) If the Official Statement is supplemented or amended pursuant to Subsection (0) of this Section 6, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to such 6 subsection) at all times subsequent thereto up to and including the Closing Date (defined below), the Official Statement as so supplemented or amended will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, that this representation and warranty shall not apply to that information contained in any supplement or amendment to the Official Statement- under the captions "MUNICIPAL BOND INSURANCE" and "TAX EXEMPTION". (0) If between the date of this Bond Purchase Agreement and the Closing Date (defined below), the Issuer becomes aware (or, with the exercise of reasonable diligence, should have become aware) of any event which might reasonably be expected to cause the Official Statement, as then supplemented or amended, to contain any untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the Issuer shall notify the Underwriter thereof, and if, in the opinion of the Underwriter, such event requires the preparation and publication of a supplement or supplements, the Issuer will, at its expense, amend the Official Statement in a form and in a manner approved by the Underwriter. 7. At 10:00 A.M., E.S.T., on August 21, 1991, or such other time or date as shall be mutually agreed upon by the Issuer and the Underwriter, subject to the terms and conditions hereof, the Issuer will deliver to the Underwriter at such address as shall be mutually agreed on by the Issuer and the Underwriter, the Bonds in fully registered, definitive form (all the Bonds to be lithographed on steel engraved borders and each issue of the Bonds to bear proper CUSIP numbers), in authorized denominations, duly executed and authenticated, as provided in the Resolution, together with the other documents herein mentioned; and the Underwriter will accept such delivery and pay the purchase price thereof by wire transfer of Federal Funds to the Issuer. Such delivery and payment is called herein the "Closing", and the date of such delivery and payment is herein called the "Closing Date". The Bonds shall be in such authorized denominations and registered in such manner as shall be provided by the Underwriter to the printer of the Bonds or the Bond Registrar no less than five (5) business days before the Closing Date. The Underwriter will make the necessary arrangements so that CUSIP identification numbers will be printed on the Bonds, and the failure to print such number on any Bond or any error with respect thereto shall not constitute cause for a failure and refusal by the Underwriter to accept delivery of and pay for the Bonds in accordance with the terms of this Bond Purchase Agreement. 7 Notwithstanding the foregoing, the Underwriter may at its option agree to accept delivery of the Bonds in typewritten temporary form rather than in definitive form in the event that the Bonds in definitive form are not available on the Closing Date. The Issuer agrees to use its best efforts to have the Bonds available in definitive form on the Closing Date or, if not available in definitive form on the Closing Date, to have Bonds in definitive form available for exchange as soon as possible thereafter. 8. The Underwriter has entered into this Bond Purchase Agreement in reliance upon the representations and warranties of the Issuer contained herein, and the performance by the Issuer of its obligations hereunder, both on the date hereof and on the Closing Date. Accordingly, the Underwriter's obligations under this Bond Purchase Agreement are subject to satisfaction of the following further conditions on or prior to the Closing: (A) The representations and warranties of the Issuer contained herein will be true, complete and correct on the date hereof and on the Closing Date, as if made on the Closing Date, and the statements made in all certificates and other documents delivered to the Underwriter on the Closing Date will be true, complete and correct on the Closing Date (subject, however, to the provisions of Section 6(A) hereof); (B) At Closing, the Issuer shall have duly executed and delivered the Registrar Agreement to the Registrar. (C) At the time of Closing, the Resolution shall be in full force and effect in accordance with its terms and shall not have been amended, modified or supplemented, and the Official Statement shall not have been supplemented or amended, except as may have been agreed to in writing by the Underwriter. (D) At the time of Closing, (i) the Instruments will be in full force and effect and will not have been amended, modified or supplemented except as may have been agreed to in writing by the Underwriter; (ii) the proceeds of the sale of the Bonds will be applied as described in the Official Statement; (iii) all official actions which, in the opinion of Bond Counsel and Counsel to the Underwriter, are necessary in connection with the transactions contemplated hereby, will have been duly taken and be in full force and effect; and (iv) the Issuer will have performed all of its obligations required under the Instruments to be performed on or prior to the Closing Date. (E) No decision, ruling or finding will have been entered by any court or governmental authority since the 8 date of this Bond Purchase Agreement (and not appeal or otherwise set aside) which has any of described in Section 6(G) hereof. (F) On or prior to the Closing Date, the will have received the following documents each substance satisfactory to the Underwriter: (1) An approving opinion dated the Closing Date of Rhoads & Sinon, Boca Raton, Florida ("Bond Counsel"), in the form attached as Appendix "E" to the Official Statement; reversed on the effects Underwriter in form and (2) An opinion of Bond Counsel addressed to the Underwriter, substantially in the form attached hereto as Exhibit "C"; (3) The opinion of Charles P. Vitunac, Esquire, the County Attorney, Vero Beach, Florida, addressed to the Issuer, the Underwriter and Bond Counsel, dated the Closing Date, substantially in the form attached hereto as Exhibit "D"; (4) An opinion of Boose Casey Ciklin Lubitz Martens McBane & O'Connell, West Palm Beach, Florida, counsel to the Underwriter, dated the Closing Date, and addressed to the Underwriter in substantially the form attached hereto as Exhibit "E"; (5) A certificate of the Kimley-Horn and Associates, Inc. (the "Engineers") dated as of the Closing Date, substantially in the form attached hereto as Exhibit "F". (6) A certificate of Fishkind and Associates, Financial Advisor to the Issuer, substantially in the form attached hereto as Exhibit "G". (7) The consent of Coopers & Lybrand, Certified Public Accountants, to include their financial statements of the Issuer in the Official Statement. (8) A certified copy of a certificate to the effect that no appeal has been taken on the final judgment described in paragraph 5(E) hereof. (9) The Insurance Policy issued by the Insurer, dated as of the Closing Date, in the form attached as Appendix "D" to the Official Statement. (10) An opinion of Counsel of the Insurer, substantially in the form attached hereto as Exhibit "H". 9 (11) A certificate signed by the Chairman or Vice Chairman and Clerk of the Issuer, dated the Closing Date, to the effect that (i) the representations and warranties of the Issuer herein are true and correct in all material respects as if made on the Closing Date; (ii) the Resolution and the Rate Ordinance have not been amended or supplemented, except as consented to in writing by the Underwriter, and are in full force and effect; (iii) the Instruments have been entered into and are in full force and effect; (12) An arbitrage certificate in compliance with the Internal Revenue Code of 1986, as amended, dated the Closing Date, signed by the Chairman or Vice Chairman of the Issuer; (13) A copy of the Resolution and the Rate Ordinance, as adopted by the Issuer, duly certified by the Clerk of the Issuer as of the Closing Date; (14) Executed copies of the other Instruments in form approved by the Issuer with only such changes as are satisfactory to the Underwriter; (15) Written evidence that Standard & Poor's Corporation has issued a rating of "AAA" on the Bonds, and that Moody's Investor Service has issued a rating of "Aaa" on the Bonds, and such rating shall still be in effect with respect to the Bonds, shall not have been downgraded or withdrawn and the documents delivered on the Closing Date shall satisfy the conditions to the continuance of such ratings; and (16) Suchadditional legal opinions, certificates, instruments nstruments and other documents as the Underwriter or Bond Counsel may reasonably request to evidence (i) compliance with legal requirements, (ii) the truth and accuracy, on the Closing Date, of the representations and warranties contained herein and in the Official Statement, and (iii) the due performance or satisfaction by the Issuer on or prior to the Closing Date of all agreements then to be performed and all conditions then to be satisfied by the Issuer. 0 opinions, letters, certificates, instruments and other its mentioned above or elsewhere in this Bond Purchase 01t shall be deemed to be in compliance with the provisions kf, but only if, they are in form and substance satisfactory Underwriter and its counsel. Md 10 9. The Underwriter has the right to cancel its obligations to purchase the Bonds, by written notice to the Issuer, if between the date hereof and the Closing: (i) any event shall occur which makes untrue any statement of a material fact set forth in the Official Statement or results in an omission to state a material fact necessary to make any statement therein, in light of the circumstances under which such statement is made, not misleading; (ii) there shall be commenced or threatened any proceeding by the Securities and Exchange Commission relating to the Bonds; or (iii) the market for the Bonds or the market price of the Bonds or the ability of the Underwriter to enforce contracts for the sale of the Bonds shall have been materially and adversely affected, in the professional judgment of the Underwriter, by (a) legislation introduced in or passed by the United States House of Representatives or United States Senate of the Congress of the United States or adopted by either House thereof, or an amendment to legislation pending in the Congress of the United States, or the recommending, or otherwise endorsing (by press release, other form of notice or otherwise) for passage of legislation to the Congress of the United States, by the President of the United States, the Treasury Department of the United States, the Internal Revenue Service or the Chairman of the U.S. Senate Committee on Finance or the U.S. House of Representatives Committee on Ways and Means or the proposal for consideration of legislation by either such committee by any member thereof or the fact that legislation shall have been favorably reported for passage to either or both Houses of the Congress of the United States by a Committee of such House or a joint congressional committee of both houses to which such legislation has been referred for consideration, or the rendering of a decision by a court of the United States or the making of a ruling, regulation or official statement by or on behalf of the Treasury Department of the United States, the Internal Revenue Service or other governmental agency, with respect to Federal taxation of revenues of the Issuer or upon interest received on securities of the general character of the Bonds or which would have the effect of changing, directly or indirectly, the Federal income tax consequences of receipt of interest on securities of the general character of the Bonds in the hands of the owners thereof, which in the opinion of the Underwriter would materially adversely affect the market price of the Bonds, or (b) any new outbreak of hostilities or other national or international calamity or crisis, the effect of such outbreak, calamity or crisis on the financial markets of the United States of America being such as, in the professional judgment of the Underwriter, would affect materially and adversely the ability of the Underwriter to market the Bonds, or (c) a general suspension of trading on the New York Stock Exchange, or filing of minimum or maximum prices for trading or maximum ranges for prices for securities on the New York Stock Exchange, or (d) a general banking moratorium declared by either federal, New York or Florida, or any state authorities having jurisdiction. 11 (11) A certificate signed by the Chairman or Vice Chairman and Clerk of the Issuer, dated the Closing Date, to the effect that (i) the representations and warranties of the Issuer herein are true and correct in all material respects as if made on the Closing Date; (ii) the Resolution and the Rate Ordinance have not been amended or supplemented, except as consented to in writing by the Underwriter, and are in full force and effect; (iii) the Instruments have been entered into and are in full force and effect; (12) An arbitrage certificate in compliance with the Internal Revenue Code of 1986, as amended, dated the Closing Date, signed by the Chairman or Vice Chairman of the Issuer; (13) A copy of the Resolution and the Rate Ordinance, as adopted by the Issuer, duly certified by the Clerk of the Issuer as of the Closing Date; (14) Executed copies of the other Instruments in form approved by the Issuer with only such changes as are satisfactory to the Underwriter; (15) Written evidence that Standard & Poor's Corporation has issued a rating of "AAA" on the Bonds, and that Moody's Investor Service has issued a rating of "Aaa" on the Bonds, and such rating shall still be in effect with respect to the Bonds, shall not have been downgraded or withdrawn and the documents delivered on the Closing Date shall satisfy the conditions to the continuance of such ratings; and (16) Such additional legal opinions, certificates, proceedings, instruments and other documents as the Underwriter or Bond Counsel may reasonably request to evidence (i) compliance with legal requirements, (ii) the truth and accuracy, on the Closing Date, of the representations and warranties contained herein and in the Official Statement, and (iii) the due performance or satisfaction by the Issuer on or prior to the Closing Date of all agreements then to be performed and all conditions then to be satisfied by the Issuer. :he opinions, letters, certificates, instruments and other eknts mentioned above or elsewhere in this Bond Purchase Ment shall be deemed to be in compliance with the provisions f if, but only if, they are in form and substance satisfactory et Underwriter and its counsel. 111 10 (11) A certificate signed by the Chairman or Vice Chairman and Clerk of the Issuer, dated the Closing Date, to the effect that (i) the representations and warranties of the Issuer herein are true and correct in all material respects as if made on the Closing Date; (ii) the Resolution and the Rate Ordinance have not been amended or supplemented, except as consented to in writing by the Underwriter, and are in full force and effect; (iii) the Instruments have been entered into and are in full force and effect; (12) An arbitrage certificate in compliance with the Internal Revenue Code of 1986, as amended, dated the Closing Date, signed by the Chairman or Vice Chairman of the Issuer; (13) A copy of the Resolution and the Rate Ordinance, as adopted by the Issuer, duly certified by the Clerk of the Issuer as of the Closing Date; (14) Executed copies of the other Instruments inform approved by the Issuer with only such changes as are satisfactory to the Underwriter; (15) Written evidence that Standard & Poor's Corporation has issued a rating of "AAA" on the Bonds, and that Moody's Investor Service has issued a rating of "Aaa" on the Bonds, and such rating shall still be in effect with respect to the Bonds, shall not have been downgraded or withdrawn and the documents delivered on the Closing Date shall satisfy the conditions to the continuance of such ratings; and (16) Such additional legal opinions, certificates, proceedings, instruments and other documents as the Underwriter or Bond Counsel may reasonably request to evidence (i) compliance with legal requirements, (ii) the truth and accuracy, on the Closing Date, of the representations and warranties contained herein and in the Official Statement, and (iii) the due performance or satisfaction by the Issuer on or prior to the Closing Date of all agreements then to be performed and all conditions then to be satisfied by the Issuer. All the opinions, letters, certificates, instruments and other documents mentioned above or elsewhere in this Bond Purchase Agreement shall be deemed to be in compliance with the provisions hereof if, but only if, they are in form and substance satisfactory to the Underwriter and its counsel. 10 9. The Underwriter has the right to cancel its obligations to purchase the Bonds, by written notice to the Issuer, if between the date hereof and the Closing: (i) any event shall occur which makes untrue any statement of a material fact set forth in the Official Statement or results in an omission to state a material fact necessary to make any statement therein, in light of the circumstances under which such statement is made, not misleading; (ii) there shall be commenced or threatened any proceeding by the Securities and Exchange Commission relating to the Bonds; or (iii) the market for the Bonds or the market price of the Bonds or the ability of the Underwriter to enforce contracts for the sale of the Bonds shall have been materially and adversely affected, in the professional judgment of the Underwriter, by (a) legislation introduced in or passed by the United States House of Representatives or United States Senate of the Congress of the United States or adopted by either House thereof, or an amendment to legislation pending in the Congress of the United States, or the recommending, or otherwise endorsing (by press release, other form of notice or otherwise) for passage of legislation to the Congress of the United States, by the President of the United States, the Treasury Department of the United States, the Internal Revenue Service or the Chairman of the U.S. Senate Committee on Finance or the U.S. House of Representatives Committee on Ways and Means or the proposal for consideration of legislation by either such committee by any member thereof or the fact that legislation shall have been favorably reported for passage to either or both Houses of the Congress of the United States by a Committee of such House or a joint congressional committee of both houses to which such legislation has been referred for consideration, or the rendering of a decision by a court of the United States or the making of a ruling, regulation or official statement by or on behalf of the Treasury Department of the United States, the Internal Revenue Service or other governmental agency, with respect to Federal taxation of revenues of the Issuer or upon interest received on securities of the general character of the Bonds or which would have the effect of changing, directly or indirectly, the Federal income tax consequences of receipt of interest on securities of the general character of the Bonds in the hands of the owners thereof, which in the opinion of the Underwriter would materially adversely affect the market price of the Bonds, or (b) any new outbreak of hostilities or other national or international calamity or crisis, the effect of such outbreak, calamity or crisis on the financial markets of the United States of America being such as, in the professional judgment of the Underwriter, would affect materially and adversely the ability of the Underwriter to market the Bonds, or (c) a general suspension of trading on the New York Stock Exchange, or filing of minimum or maximum prices for trading or maximum ranges for prices for securities on the New York Stock Exchange, or (d) a general banking moratorium declared by either federal, New York or Florida, or any state authorities having jurisdiction. 11 If the Issuer shall be unable to satisfy the conditions to the Underwriter's obligations contained in this Bond Purchase Agreement or if the Underwriter's obligations shall be terminated for any reason permitted by this Bond Purchase Agreement, the Bond Purchase Agreement shall, at the option of the Underwriter, terminate and neither the Issuer nor the Underwriter shall have any further obligation hereunder. If the Underwriter fails (other than for a reason permitted under this Bond Purchase Agreement) to accept and pay for the Bonds at the Closing, the Underwriter shall pay to the Issuer as and for full liquidated damages an amount equal to one percent (1%) of the proposed face amount of the Bonds for such failure and for any and all defaults hereunder on the part of the Underwriter, and upon such payment all the Issuer's claims and rights hereunder against the Underwriter shall be fully released and discharged. 10. Except as set forth in the following paragraph, the Issuer will pay any and all expenses incident to the issuance of the Bonds, including but not limited to (i) the cost of preparation and reproduction of the Instruments, (ii) the cost of the preparation and the printing of the Bonds, including the printing of the CUSIP numbers thereon, (iii) the fees and disbursements of Bond Counsel and Counsel to the Issuer, (iv) the fees and disbursements of Fishkind & Associates (v) the fees and disbursements of any feasibility consultant engaged by the Issuer, (vi) the fees and disbursements of accountants and auditors used by the Issuer, (vii) the cost of printing and preparing for printing, and distributing the Preliminary Official Statement and the Official Statement, including word processing charges with respect thereto other than to Counsel to the Underwriter, (viii) the fees and disbursements of the Insurer, (ix) the fees and disbursements of Standard & Poor's Corporation and Moody's Investor Service for issuing a rating on the Bonds, and (x) all other expenses related to the issuance and delivery of the Bonds not covered by the provisions of paragraph 11 immediately below. 11. The Underwriter will pay: (i) expenses of advertising in connection with the public offering of the Bonds, (ii) the CUSIP Service Bureau charge for the assignment of CUSIP numbers with respect to the Bonds, (iii) the costs of printing the Blue Sky and Legal Investment Surveys, if any, with respect to the Bonds, and (iv) all other expenses incurred by the Underwriter in connection with its public offering and distribution of the Bonds, including fees and disbursements of Counsel to the Underwriter. 12. Any notice or other communication to be given to the Issuer under this Bond Purchase Agreement (other than the acceptance hereof as specified in the first paragraph hereof) may be given by delivering the same in writing to the Issuer at the address 12 set forth above, and any notice or other communication to be given to the Underwriter under this Bond Purchase Agreement may be given by delivering the same in writing to William R. Hough & Co., at 100 Second Avenue South, Suite 800, St. Petersburg, Florida 33701, Attention: Edwin Bulleit 13. This Bond Purchase Agreement when accepted by the Issuer will constitute the entire agreement between the Issuer and the Underwriter and is made solely for the benefit of the Issuer and the Underwriter (including its successors or assigns). No other person shall acquire or have any right hereunder or by virtue hereof. All representatives, warranties and agreements in this Bond Purchase Agreement shall survive regardless of (a) any investigation or any statement in respect thereof made by or on behalf of the Underwriter and (b) delivery of and payment by the Underwriter for the Bonds hereunder. Accepted: Very truly yours, WILLIAM R. HOUGH & CO. By: ,e --i '7 First Vice -President BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA By: ,. Chai Attest Cleru- � C . [SE Date: July 23, 1991 13 EXHIBITS Exhibit "A" - Term Sheet Exhibit "B" - Preliminary Official Statement Exhibit "C" - Supplemental Opinion of Bond Counsel Exhibit "D" - Opinion of Counsel to the Issuer Exhibit "E" - Opinion of Counsel to the Underwriter Exhibit "F" - Certificate of Engineers Exhibit "G" - Certificate of Financial Advisor Exhibit "H" - Opinion of Counsel to Insurer EXHIBIT "A" MATURITIES, AMOUNTS, INTEREST RATES AND PRICES MATURITIES AMOUNT INTEREST RATE PRICE September 1, 1994 $ 125,000 5.35% September 1, 1995 130,000 5.55 September 1, 1996 135,000 5.70 September 1, 1997 145,000 5.75 September 1, 1998 155,000 5.90 September 1, 1999 165,000 6.00 September 1, 2000 170,000 6.10 September 1, 2001 185,000 6.20 September 1, 2006 1,110,000 6.75 September 1, 2011 1,545,000 6.85 September 1, 2016 2,150,000 6.75 REDEMPTION 100.000 100.000 100.000 99.495 99.713 99.370 99.314 99.262 99.250 99.727 97.750 Optional Redemption The Series 1991 Bonds maturing on or before September 1, 1999 will not be subject to optional redemption by the County. Bonds maturing on or after September 1, 2000 are subject to redemption prior to maturity at the option of the County, in whole or in part on any date, on or after September 1, 1999. The County may select the maturities of the Series 1991 Bonds to be redeemed and if less than all bonds of a maturity are to be called for redemption, the selection of the particular Series 1991 Bonds to be called for redemption shall be by lot in any customary manner of selection as designated by the County, and any such redemption, either in whole or in part, shall be made at the following prices (expressed below as a percentage of the principal amount being redeemed), plus accrued interest to the redemption date: Redemption Period (Both dates inclusive) Redemption Price September 1, 1999 through August 31, 2000 102% September 1, 2000 through August 31, 2001 101 September 1, 2001 through August 31, 2002 100 Mandatory Redemption The term bonds maturing on September 1, 2006 shall be subject to mandatory redemption and shall be callable by lot at par plus accrued interest on September 1 in the following amounts in the following years: September 1 of Year Principal Amount 2002 $ 195,000 2003 210,000 2004 220,000 2005 235,000 2006 (maturity) 250,000 The term bonds maturing on September 1, 2011 shall be subject to mandatory redemption and shall be callable by lot at par plus accrued interest on September 1 in the following amounts in the following years: September 1 of Year Principal Amount 2007 $ 270,000 2008 290,000 2009 305,000 2010 330,000 2011 (maturity) 350,000 The term bonds maturing on September 1, 2016 shall be subject to mandatory redemption and shall be callable by lot at par plus accrued interest on September 1 in the following amounts in the following years: September 1 of Year Principal Amount 2012 $ 375,000 2013 400,000 2014 430,000 2015 455,000 2016 (maturity) 490,000 EXHIBIT "8" PRELIMINARY OFFICIAL STATEMENT (To be provided by Issuer) EXHIBIT "C" (Supplemental Opinion of Bond Counsel) 1991 William R, Hough & Co. St. Petersburg, Florida Re: $ Indian River County, Florida, Recreational Revenue Bonds, Series 1991 We have acted as Bond Counsel in connection with the issuance and sale by the Board of County Commissioners of Indian River County, Florida (the "Issuer") of the above -referenced bonds (the "Bonds"). All terms used herein in capitalized form and not otherwise defined herein shall have the meaning ascribed hereto pursuant to the resolution adopted by the Issuer on July 17, 1985, pertaining to the Bonds, as amended and supplemented (the "Bond Resolution"). The opinions expressed herein are supplemental to our bond counsel opinion pertaining to the Bonds rendered to the Issuer as of the date hereof, the form of which is printed on the reverse side thereof. Although such Opinion was addressed to the Issuer, you are hereby authorized to rely on the it to the same extent as if it were addressed to you. In our capacity as Bond Counsel we have reviewed the Preliminary Official Statement of the Issuer dated July 17, 1991 and the Official Statement of the Issuer dated July , 1991 (collectively, the "Official Statement"). We have participated in the preparation of the statements contained in the Official Statement on the cover thereof, under the captions "THE DESCRIPTION OF THE SERIES 1991 BONDS," "SECURITY FOR THE SERIES 1991 BONDS," "APPROVAL OF LEGALITY," and "TAX EXEMPTION," and in the "SUMMARY OF CERTAIN PROVISIONS OF THE RESOLUTION" contained as APPENDIX "C" to the Official Statement and the "FORM OF OPINION OF BOND COUNSEL" contained as APPENDIX "E" to the Official Statement. Based upon our participation, we believe that insofar as such statements constitute summaries of the Bonds, the Bond Resolution and the federal and State of Florida tax status of the Bonds, such statements are accurate and correct in all material respects. Except as stated herein we are not passing upon and do not assume any responsibility for the accuracy, completeness, or fairness of any of the statements contained in the Official Statement. This letter is furnished by us solely for your benefit in connection with the provisions of the Bond Purchase Agreement and may not be relied upon by any other person. Very truly yours, RHOADS & SINON EXHIBIT "D" Re: Indian River County, Florida Recreational Revenue Bonds, Series 1991 Tndian River County, Florida 1840 25th Street Vero Beach, Florida 32960 William R. Rough 6 Co. Suite 800 100 Second Avenue South St. Petersburg, Florida 33701 Ladies and Gentlemen; .1991 Rhoads & Sinon Suite 299 299 W. Camino Gardens Blvd. Boca Raton, Florida 33432 I have acted as counsel to Indian River County, Florida (the "County") in connection with the authorization. sale, issuance and delivery of the Recreational Revenue Bonds. Series 1991, dated as of August 1. 1991, in the aggregate principal amount of $ (the "Bonds"), of the County. The Bonds are being issued pursuant to ReS9lutLon No. Ai"7A df tho County, e, noel Hied and supplemented, including without limitation the amendments and supplements made by Resolution Nos. 91.70, 91•.. and 91- (collectively the "Resolution"). Capitalized terms used, but not otherwise defined, herein shall have the respective meanings ascribed to them in the Official Statement referred to herein. As counsel to the County, I have examined, among other things, certified copies of certain proceedings of the County with respect to the Bonds and other proofs submitted to me which are relevant to the authorization, sale. issuance and delivery of the Bonds; a certified copy of the Resolution; usual and required closing affidavits, certificates and documents. I have also participated in the preparation of the Preliminary Official Statement pertaining to the Bonds, dated July 17, 1991 and the final Official Statement dated �. 1991 (collectively the "Official Statement"). Based upon the foregoing, I em of the opinion that; 1. The County is a county duly organized and existing under the Constitution and laws of the State of Florida and is a subdivision thereof and has good right and lawful authority to own. manage end operate the Project, to establish and collect the Gross Revenues and to perforce all of its obligations under the Resolution. 2. Ordinance No. 77.19 of the County, as amended. and the Resolution have been duly enacted and adopted. respectively, by the County and are valid and enforceable instruments. 3. The Grose Revenues have been legally established. 4. No consent, waiver or any other action by any person, board or body. public or private, Is required es of the date hereof for the County to adopt the Resolution or issue the Bonds or perform its obligations under either of the foregoing. S. The adoption of the Resolution and the execution end delivery of the Bonds and the compliance with the provisions of each do not and will not conflict with or constitute a breach of or default under eny applicable law or administrative regulation of the State of Florida or the United States or any applicable judgment or decree or any trust agreement. loan agreement, bond. note, resolution, ordinance, agreement or other instrument to which the County is a party or is otherwise subject. 6. There is no litigation or proceeding, pending or threatened, challenging the creation, organization or existence of the County or the validity of the Bonds or the Resolution, or seeking to restrain or enjoin any of the transactions referred to therein or contemplated thereby. or under which a determination adverse to the County would have a material adverse effect upon the establishment or collection of the Cross Revenues, or which in any manner questions the right of the County to establish or collect the Cross Revenues or issue the Bonds. 7. The information in the Official Statement under the Caption "Litigation" fairly and accurately summarizes the information presented therein. Without having undertaken to determine independently the accuracy, completeness or fairness of the statements contained in the Official Statement, except as set forth in a paragraph numbered 7 above. I have no reason to believe that the Official Statement, as of its date, contained. or on the date hereof contains. any untrue statement of a material fact, or omitted or omits to stat• a material fact necessary to make the statements therein. in the light of the circumstances under which they were made, not misleading (except for any economic. financial, or statistical information included therein as to which no view is hereby expressed. Very truly yours, Charles P. Vitunac, County Attorney 2 9 EXHIBIT "E" (Opinion of Counsel to the Underwriter) , 1991 William R. Hough & Co. St. Petersburg, Florida Re: $ Indian River County, Florida, Recreational Revenue Bonds, Series 1991 Gentlemen: This letter is being delivered to you pursuant to Paragraph 8(F) (4) of the Bond Purchase Agreement dated July 23, 1991 (the "Bond Purchase Agreement") between William R. Hough & Co. (the "Underwriter") and the Board of County Commissioners of Indian River County,Florida (the "Issuer"), relating to the issuance and sale by the Issuer of the above -referenced bond issue (the "Bonds"). Terms defined in the Bond Purchase Agreement are used in this letter with the meanings assigned to them in the Bond Purchase Agreement. We have acted as your counsel in connection with the sale of the Bonds to you, and in that capacity, have examined the executed counterparts of the Bond Purchase Agreement and the Resolution. We have also examined the originals or copies, certified or otherwise identified to our satisfaction, of such other documents, records and other instruments as we have deemed necessary or advisable for purposes of this letter. It is our opinion that: 1. Under existing laws, the Bonds may be offered and sold without registration under the Securities Act of 1933, as amended, based upon the provisions of Section 3(a)(2) of such Act. 2. The Resolution is not required to be qualified under the Trust Indenture Act of 1939, as amended, based upon the provisions of Section 304(a)(4) of such Act. 3. The requirements contained in the Bond Purchase Agreement which are conditions precedent to the obligation of the Underwriters to accept and pay for the Bonds have been met, except as such requirements have been modified or waived by the Underwriter, such modification or waiver evidenced by the Underwriter's payment for the Bonds. 4. Without having undertaken to determine independently the accuracy or completeness of the statements contained in the Official Statement, but on the basis of our conferences with the County Administrator and other representatives of the Issuer, counsel to the Issuer, Bond Counsel, the Issuer's Financial Advisor and the Underwriter and our examination of certain documents referred to in the Official Statement, nothing has come to our attention which would lead us to believe that the Official Statement (other than information received from the Insurer and other than financial statements and other financial or statistical data contained therein and the information contained in the appendices, as to which we express no opinion) as of its date and as of the date hereof, contained or contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. Very truly yours, BOOSE CASEY CIKLIN LUBITZ MARTENS MCBANE & O'CONNELL +.A EXHIBIT "F" CERTIFICATE Kimley-Horn and Associates, Inc. (the "Engineers") hereby certifies as follows: 1. This certificate is furnished pursuant to clause (5) of subparagraph 8(F) of the Bond Purchase Agreement dated July 23, 1991, between the Board of County Commissioners of Indian River County, Florida (the "Issuer") and the Underwriter named therein relating to the sale of the $ aggregate principal amount of Recreational Revenue Bonds, Series 1991 (the "Bonds") for the purposes described in the Preliminary Official Statement dated July 17, 1991, and the Official Statement dated July , 1991 (hereinafter collectively referred to as the "Official Statement"), relating to such Bonds. 2. The Engineers have been retained by the Issuer to act as engineers for the 18 hole addition to Sandridge Golf Course. 3. We are not aware of any permits or other approvals which would be required for the construction of the proposed 18 hole addition to Sandridge Golf Course that cannot be obtained in the normal design and construction process. 4. The Engineers hereby consent to the reference to the Engineers in the Official Statement. KIMLEY-HORN AND ASSOCIATES, INC. By: Title: Dated: August , 1991 EXHIBIT „ars FINANCIAL ADVISOR'S CERTIFICAT$ The undersigned, FISHKIND & ASSOCIATES, have acted as financial advisor in connection with the sale and issuance of the Board of County Commissioners of the Indian River County, Florida, $ Recreational Revenue Bonds, Series 1991 (the "Bonds") and have participated in the preparation of the Preliminary Official Statement dated July 17, 1991, and the Official Statement dated July , 1991 (collectively, the "Official Statement"). Based upon our participation in the preparation of the Official Statement, we have no reason to believe that the Official Statement, as of the date thereof and as of this date, contained or contains any untrue statement of a material fact or omitted or omits to state a material fact necessary to be stated therein in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. Provided, however, that we express no opinion with regard to the information contained in the Official Statement under the caption "TAX EXEMPTION" and the financial information contained under the caption "MUNICIPAL BOND INSURANCE". Dated this day of August, 1991. FISHKIND & ASSOCIATES By: Title: Dated: EXHIBIT "H"" (Form of the AMBAC Legal Opinion) , 1991 Board of County Commissioners of Indian River County Vero Beach, Florida William R. Hough & Co. St. Petersburg, Florida Gentlemen: This opinion has been requested of the undersigned, a Vice President and an Assistant General Counsel of AMBAC Indemnity Corporation, a Wisconsin stock insurance company ("AMBAC Indemnity"), in connection with the issuance by AMBAC Indemnity of a certain Municipal Bond Insurance Policy, effective as of the date hereof (the "Policy"), insuring $ in aggregate principal amount of the Indian River County, Florida (the "Issuer"), Recreational Revenue Bonds, Series 1991, dated August 1, 1991 (the "Bonds"). In connection with my opinion herein, I have examined the Policy, such statutes, documents and proceedings as I have considered necessary or appropriate in the circumstances to render the following opinion, including, without limiting the generality of the foregoing, certain statements contained in the Official Statement of the Issuer dated July , 1991, relating to the Bonds (the "Official Statement") under the heading "MUNICIPAL BOND INSURANCE" and "RATINGS". Based upon the foregoing and having regard to legal considerations I deem relevant, I am of the opinion that: 1. AMBAC Indemnity is a stock insurance company duly organized and validly existing under the laws of the State of Wisconsin and duly qualified to conduct an insurance business in the State of Florida. 2. AMBAC Indemnity has full corporate power and authority to execute and deliver the Policy and the Policy has been duly authorized, executed and delivered by AMBAC Indemnity and constitutes a legal, valid and binding obligation of AMBAC Indemnity enforceable in accordance with its terms except to the extent that the enforceability (but not the validity) of such obligation may be limited by any applicable bankruptcy, insolvency, liquidation, rehabilitation or other similar law or enactment now or hereafter enacted affecting the enforcement of creditors' rights. 3. The execution and delivery by AMBAC Indemnity of the Policy will not, and the consummation of the transactions contemplated thereby and the satisfaction of the terms thereof will not, conflict with or result in a breach of any of the terms, conditions or provisions of the Certificate of Incorporation or By -Laws of AMBAC Indemnity, or any restriction contained in any contract, agreement or instrument to which AMBAC Indemnity is a party or by which it is bound or constitute a default under any of the foregoing. 4. Proceedings legally required for the issuance of the Policy have been taken by AMBAC Indemnity and licenses, orders, consents or other authorizations or approvals of any governmental boards or bodies legally required for the enforceability of the Policy have been obtained; any proceedings not taken and any licenses, authorizations or approvals not obtained are not material to the enforceability of the Policy. 5. The statements contained in the Official Statement under the heading "MUNICIPAL BOND INSURANCE" insofar as such statements constitute summaries of the matters referred to therein, accurately reflect and fairly present the information purported to be shown and, insofar as such statements describe AMBAC Indemnity, fairly and accurately describe AMBAC Indemnity. 6. The form of Policy contained in the Official Statement as Appendix F thereto is a true and complete copy of the form of Policy. Very truly yours, By: Vice President and Assistant General Counsel N 40a. 6 -1b - / 4a2' M . 9i - o art -t AIFEO.4 .x 991 NEW ISSUE RATINGS: Moody's /) a Standard & Poor's: Ai, i) (AMBAC Insured) See "RATINGS" herein In the Opinion of Bond Counsel, assuming continuing compliance by the County with certain covenants to comply with provisions of the Internal Revenue Code of 1986. as amended, interest on the Series 1991 Bonds is excluded from gross income for purposes of federal income laxation and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations under existing statutes, regulations and judicial decisions; although it should be noted that in the case of corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current earnings for purposes of such alternative minimum tax. Furthermore. in the Opinion of Bond Counsel, the Series 1991 Bonds and the income therefrom are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes imposed by Chapter 220. Florida Statutes, on interest, income or profits on debt obligations owned by corporations, banks and savings associations. See "TAX EXEMPTION" herein for further information. $6,0;5,000( INDIAN RIVER COUNTY, FLORIDA Recreational Revenue Bonds, Series 1991 Dated: August 1, 1991 Due: September 1, as shown below Indian River County, Florida (the "Issuer" or the "County") is issuing its Recreational Revenue Bonds, Series 1991 (the "Series 1991 Bonds"), in the form of fully registered bonds in the denominations of $5,000 principal amount or any integral multiple thereof. Interest on the Series 1991 Bonds is payable from August 1, 1991, on March 1, 1992 and semiannually thereafter on each September 1 and March 1 by check or draft of C&S/Sovran Trust Company (Florida), N.A., Fort Lauderdale, Florida, the Bond Registrar and Paying Agent, mailed to each registered owner thereof at the address as it appears on the registration books kept by the Bond Registrar on the 15th day of the month preceding the applicable interest payment date. Principal of the Series 1991 Bonds and any redemption premium will be payable upon presentation and surrender of the Series 1991 Bonds at the principal corporate trust office of the Paying Agent. The Series 1991 Bonds are subject to optional and mandatory sinking fund redemption prior to maturity as set forth herein. The Series 1991 Bonds are being issued by the County to provide, together with other available funds, the monies to finance the cost of expanding the Sandridge Golf Course in the County, funding a debt service reserve account and paying the costs of issuance of the Series 1991 Bonds. Pursuant to Indian River County, Florida, Resolution No. 85-78, adopted July 17, 1985, as amended and supplemented (the "Resolution"), the principal of, redemption premium, if any, and interest on the Series 1991 Bonds will be paid from and secured by a lien upon and pledge of the Net Revenues derived from the operation of the Sandridge Golf Course and related clubhouse facilities, the Racetrack and Jai Alai Fronton Funds and the Half -Cent Sales Tax, as provided in the Resolution. The lien of the holders of the Series 1991 Bonds on the Net Revenues, Racetrack and Jai Alai Fronton Funds and Half -Cent Sales Tax is on a parity with the lien of the holders of the County's Recreational Revenue Bonds, Series 1985, currently outstanding in the aggregate principal amount of $2,720,000 (the "Parity Bonds"). The lien of the holders of the Series 1991 Bonds and the Parity Bonds on the Half -Cent Sales Tax is subordinate to the lien of the holders of the County's $9,855,000 Refunding and Improvement Revenue Bonds, 1985 Series, and $3,655,000 Capital Improvement Bonds, 1987 Series (the "Senior Half -Cent Sales Tax Bonds") and any additional bonds issued on a parity therewith under the resolution pursuant to which the Senior Half -Cent Sales Tax Bonds were issued. The Series 1991 Bonds are special obligations of the County, and the principal of, redemption premium, if any, and interest thereon are payable solely from the revenues and funds pledged for the payment thereof as more fully described herein. The Series 1991 Bonds shall not constitute a general indebtedness of the County, the State of Florida, or any political subdivision thereof, within the meaning of any constitutional or statutory provision or limitation; and neither Indian River County, the State of Florida nor any political subdivision thereof shall be obligated to levy or collect any ad valorem taxes for payment thereof. Payment of the principal of and interest on the Series 1991 Bonds when due will be insured by a municipal bond insurance policy to be issued by AMBAC INDEMNITY CORPORATION simultaneously with the delivery of the Series 1991 Bonds. Doe 1994 1995 1996 1997 1998 1999 Principal Amount /25; 000 /30..000 /35,D00 /cf 5e 000 55> 000 /�SiOLri MATURITIES, Interest Rate 535_/ 5,'55 .70 5,75. 5,90 6'00 s h5,6)00 The Series 1991 Bonds are offered wh, Rhoads & Sinon, Boca Raton, Florida, B� Vitunac, County Attorney and for the U Palm Beach, Florida. Itis expected that on or about August 21, 1991. Dated: ) i, lir , 1991 ProlimiAser, subject to ci. AMC AMOUNTS, INTEREST RATES AND PRICES $ Serial Bonds Price Doe )0o-000 )00,000 )00.• ooc) '% y95 99,,/ 3 2004 51.3"aD 5 % Term Bonds Doe September 1,2 o i )YieId:99.7?%ko % Term Bonds Doe September 1, 2016 Webb 92, , 516 4 camel [Merest from August 1,1991) 2000 2001 2002 2003 Principal Ammo /2x000 1$x/000 (Pili ,asand i d Counsel. Ce �derwriter by its e Series 1991 Bon Interest Rate 6, o .2Ci Price 9'P 3/'t 99. ?CZ., ued and accepted by the Underwriter, subject to t c approval of kgality by in legal matters will be passed upon the County its counsel, Charks P. nsel, Boose Casey Ciklin Lubitz Martens Mc : ne & O'Connell, West in definitive form will be available for delivery i New York, New York. LIAM R.\HOUGH & CO, sgs 6.105 3 ►, I f o, uoa 6.757 'Term &)gots 1 INDIAN RIVER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS Richard N. Bird, Chairman Gary C. Wheeler, Vice -Chairman Margaret C. Bowman Carolyn R. Eggert Don C. Scurlock, Jr. Jeffrey K. Barton, Clerk Clerk of the Circuit Court and Ex -Officio Clerk to Board of County Commissioners James E. Chandler County Administrator Joseph A. Baird Director Office of Management and Budget Charles P. Vitunac County Attorney Rhoads & Sinon Bond Counsel Boca Raton, Florida Fishkind i Associates Financial Advisor Winter Park, Florida i No dealer, broker, salesman or other person has been authorized by the County or the Underwriter to give any information or to make any representations with respect to the Series 1991 Bonds other than as contained in this Official Statement, and if given or made such other information or representations must not be relied upon as having been authorized by either of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Series 1991 Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information contained in this Official Statement has been obtained from public documents, records and other sources considered to be reliable but is not guaranteed as to completeness or accuracy by, and is not construed as a representation by the Underwriter or, as to information from sources other than the County, by the County. Any statements in this Official Statement involving estimates, assumptions and matters of opinion, whether or not so expressly stated, are intended as such and not as representations of fact, and the County and the Underwriter expressly make no representations that such estimates, assumptions and opinions will be realized or fulfilled. This Official Statement speaks only as of its date, and no information, estimates, assumptions and matters of opinion contained in this Official Statement, or any sale made hereunder, shall under any circumstances create any implication that there has been no change in the affairs of the County since the date hereof. IN CONNECTION WITH THE OFFERING OF THE SERIES 1991 BONDS, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS THAT MAY STABILIZE OR MAINTAIN THE MARKET PRICE OF SUCH BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZATION, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE SERIES 1991 BONDS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. ii TABLE OF CONTENTS INTRODUCTION 1 PURPOSE OF THE SERIES 1991 BONDS 2 DESCRIPTION OF THE SERIES 1991 BONDS 2 Optional Redemption 2 Mandatory Redemption 3 Notice of Redemption 4 Registration, Transfer and Exchange 4 APPLICATION OF PROCEEDS 5 SECURITY FOR THE SERIES 1991 BONDS 5 General 5 Additional Security for Series 1991 Bonds and Parity Bonds 6 Rate Covenant 7 Reserve Account 7 Municipal Bond Insurance 7 Additional Parity Obligations 8 MUNICIPAL BOND INSURANCE 8 Payment Pursuant to Municipal Bond Insurance Policy . 8 AMBAC Indemnity Corporation 10 THE PARITY BONDS 12 THE SENIOR HALF -CENT SALES TAX BONDS 12 ESTIMATED SOURCES AND USES OF FUNDS 14 DEBT SERVICE REQUIREMENTS 15 THE PROJECT 16 The Existing Facility 16 The 1991 Project 17 RACETRACK AND JAI ALAI FRONTON FUNDS 20 Taxes on Pari-Mutuel Wagering 20 Right of Cancellation by Voters 21 History of Total Revenues and Distributions 21 HALF -CENT SALES TAX 23 HISTORICAL AND ESTIMATED REVENUES AND DEBT SERVICE COVERAGE VALIDATION iii 25 26 LITIGATION 26 RATINGS 26 FINANCIAL STATEMENTS 26 APPROVAL OF LEGALITY 27 TAX EXEMPTION 27 UNDERWRITING 30 AUTHORIZATION AND CERTIFICATION CONCERNING THE OFFICIAL STATEMENT 31 Appendix A: Appendix B: Appendix C: Appendix D: Appendix E: Indian River County, Florida General Information General Purpose Financial Statements and Independent Auditors' Report for the Fiscal Year Ended September 30, 1990 Summary of Certain Provisions of the Resolution Specimen Municipal Bond Insurance Policy Form of Opinion of Bond Counsel iv $6,0$$,000X1 INDIAN RIVER COUNTY FLORIDA RECREATIONAL REVENUE BONDS, Series 1991 INTRODUCTION This Official Statement, which includes the cover page and appendices hereto, provides certain information relating to the sale by Indian River County, Florida (the "Issuer" or the "County") , of its $6,025,000 Recreational Revenue Bonds, Series 1991 (the "Series 1991 Bonds"). The Series 1991 Bonds are being issued pursuant to Chapter 125, Florida Statutes, County Home Rule Ordinance No. 77-19, enacted August 3, 1977, as amended, and other applicable provisions of law (collectively the "Act"); and Indian River County Resolution No. 85-78, adopted July 17, 1985, as amended and supplemented (the "Resolution"). All summaries herein of documents and agreements and all summaries herein of the Series 1991 Bonds are qualified in their entirety by reference to the aforesaid documents, copies of which are available for inspection at the office of the County Attorney. The validity of the Series 1991 Bonds has been determined by a Final Judgment of the Circuit Court of the Nineteenth Judicial Circuit, in and for Indian River County, Florida, rendered on July 17, 1991. The time for an appeal will expire on August 16, 1991. The Series 1991 Bonds will not be issued if an appeal is pending on the proposed closing date. The references, excerpts and summaries of all documents referred to herein do not purport to be complete statements of the provisions of such documents, and are made subject to all of the detailed provisions of such documents, to which reference is directed for full and complete statements of all matters relating to the Resolution, the Series 1991 Bonds, the security for the payment of the Series 1991 Bonds and rights and obligations of the holders of the Series 1991 Bonds. Capitalized terms used but not defined herein have the same meaning as in the Resolution unless the context would clearly indicate otherwise. *--pr+ei axy :_subject ~ to- change . 1 PURPOSE OF THE SERIES 1991 BONDS The County finds it necessary and desirable to construct and equip an expansion (the "1991 Project") to the Sandridge Golf Course, a public golf course and related clubhouse facilities now owned and operated by the County (the "Project"), in accordance with the plans and specifications on file or to be on file with the Clerk of the Board of County Commissioners. The golf course is to be expanded from its current eighteen holes to thirty-six holes with an enlarged clubhouse and will continue to be owned and operated by the County. The will be Project, costs of Series 1991 Bonds are being issued in an amount which sufficient to acquire, construct and equip the 1991 fund a debt service reserve account and to finance the issuance of the Series 1991 Bonds. DESCRIPTION OF THE SERIES 1991 BONDS The Series 1991 Bonds will be dated August 1, 1991, and will bear interest from such date at the rates per annum as set forth on the cover page hereof, payable on March 1, 1992 and semiannually thereafter on each September 1 and March 1 and will mature on September 1 in the years and principal amounts as set forth on the cover page hereof. The Series 1991 Bonds will be issued in fully registered form in the denominations of $5,000 or any integral multiple thereof. Principal and any redemption premium is payable upon surrender of the Series 1991 Bonds at the principal corporate trust office of C&S/Sovran Trust Company (Florida), N.A., Fort Lauderdale, Florida, the Paying Agent and Bond Registrar. Interest will be payable by check or draft mailed to each registered owner at his address as it appears on the registration books kept by the Bond Registrar on the fifteenth day of the month preceding the applicable interest payment date. The Series 1991 Bonds are being issued on a parity with the County's $2,720,000 Recreational Revenue Bonds, Series 1985, issued in April of 1986 (the "Parity Bonds"). The Series 1991 Bonds, the Parity Bonds and any Additional Parity Obligations issued under the Resolution are collectively referred to herein as the "Bonds." Optional Redemption 04 or The Series 1991 Bonds maturing before September 1, )?n}'1 will not be subject to optional redemption by the County. Bonds maturing on or after September 1, 7O are subject to redemption prior to maturity at the option of the County, in whole or in 2 part on any date, on or after September 1, )(7'? . The County may select the maturities of the Series 1991 Bonds to be redeemed and if less than all bonds of a maturity are to be called for redemption, the selection of the particular Series 1991 Bonds to be called for redemption shall be by lot in any customary manner of selection as designated by the County, and any such redemption, either in whole or in part, shall be made at the following prices (expressed below as a percentage of the principal amount being redeemed), plus accrued interest to the redemption date: Redemption Period d . es 57,0 .-/e, 1‘399 ), W°0 'tri - J; o00 a3),7o ) 1) Z.o►oi 7Ati,o " 3/)2oc�Z Redemption Price JO? '/ )0) )Oo Mandatory Redemption The term bonds maturing on September 1, 2000 shall be subject to mandatory redemption and shall be callable by lot at par plus accrued interest on September 1 in the following amounts in the following years: September 1 of YAM 2po3 WoLt- 2405 apo 3 Principal Amount $!90000 )(,,,000 220)C)O0 2.,5)cO o U 2'SOOo 00 The term bonds maturing on September 1, 2.0) shall be subject to mandatory redemption and shall be callable by lot at par plus accrued interest on September 1 in the following amounts in the following years: September 1 of Year 207 2.90 wok ?P10 2p)$ (MSUn Principal Amount 5tZ7c o OO 3a5)ooc> 3o} o oo 3 50,600 Notice of Redemption Notice of redemption of the Series 1991 Bonds shall, at least thirty (30) days prior to the redemption date: (i) be filed with the Bond Registrar and Paying Agent; and (ii) be mailed, postage prepaid, to all Registered Owners of the Series 1991 Bonds to be redeemed at their addresses as they appear of record on the books of the Bond Registrar as of fifteen (15) days prior to the date of selection of the Series 1991 Bonds to be redeemed and ending on the redemption date. Interest shall cease to accrue on any Series 1991 Bond duly called for prior redemption on the redemption date, if payment thereof has been duly provided. The privilege of transfer or exchange of any of the Series 1991 Bonds so called for redemption is suspended for a period commencing fifteen (15) days preceding the date of selection of the Series 1991 Bonds to be redeemed and ending on the redemption date. Neither the failure to mail notice of redemption to the holders of the Series 1991 Bonds to be redeemed nor any defect therein shall affect the proceedings for redemption of Series 1991 Bonds as to which notice was mailed in accordance with subsection (ii) of this paragraph and no defect has occurred. Registration, Transfer and Exchange All Series 1991 Bonds presented for transfer, exchange, redemption or payment (if so required by the County or the Bond Registrar) shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in form and with guaranty of signature satisfactory to the County or the Bond Registrar, duly executed by the Registered Owner or by his duly authorized attorney. The County and the Bond Registrar may charge the Registered Owner a sum sufficient to reimburse them for any expenses incurred Se" Aw/�r lO-f� I`Ar /V`i'fr a?a " J A (0%- ' _ _ r,,(1,4,1.. (47.-`'-e -iAA 29 wQ. z . C41 c rye 75.a.a`,- -40- ) ) Z o 6 S,y tV 6 J/ _ ;i./ •' in making any exchange or transfer. The Bond Registrar or the County may also require payment from the Registered Owner or his transferee, as the case may be, of a sum sufficient to cover any tax, fee or other governmental charge that may be imposed in relation thereto. Such charges and expenses shall be paid before any such new Series 1991 Bond shall be delivered. The County and the Bond Registrar may treat the Registered Owner of any Series 1991 Bond as the absolute owner thereof for all purposes, and shall not be bound by any notice to the contrary. APPLICATION OF PROCEEDS All moneys received from the sale of the Series 1991 Bonds shall be deposited and applied by the County as follows: A. All accrued interest plus an amount which together with expected interest earnings from investment of bo proceeds, will equal the interest on the Series 1991 Bonds for months from the date of issuance thereof, shall be deposited into the 1991 Sinking Fund created under the Resolution and applied exclusively for the payment of interest first becoming due on the Series 1991 Bonds. B. The sum of $ 5 Z2,cf-)--s-- shall be deposited into the Reserve Account in the Sinking Fund. C. The amount necessary to pay all costs incurred in connection with the issuance of the Series 1991 Bonds shall be paid or provided for. D. The balance of the moneys remaining after making all the deposits and payments provided for above shall be deposited into the 1991 Construction Fund created under the Resolution and withdrawn, used and applied by the County, as and when necessary, solely for the payment of the costs of the 1991 Project and purposes incidental thereto. If for any reason any moneys in the 1991 Construction Fund are not necessary for or are not applied to the payment of such costs, then such moneys shall be deposited by the County into the Sinking Fund and used only to pay the principal of and interest on the Series 1991 Bonds. SECURITY FOR THE SERIES 1991 BONDS General The principal of, redemption premium, if any, and interest on the Bonds will be payable from and secured by a lien upon and pledge of: (i) Net Revenues (which shall include all income or earnings derived from the operation of the Project; all proceeds of the 5 sale, condemnation and/or insurance on the Project; and any income from the investment of money in funds and accounts established in the Resolution for payment of the principal and interest on the Bonds); minus the Cost of Operation and Maintenance (which shall include the current expenses, paid or accrued, of operation, maintenance and repair of the Project without including payments in lieu of taxes, any reserve for renewals and replacements, extraordinary repairs or any allowance for depreciation); and (ii) The racetrack funds and jai alai fronton funds accruing annually to the County (collectively, the "Racetrack and Jai Alai Fronton Funds") pursuant to Chapters 550 and 551, Florida Statutes, and allocated to the County pursuant to law. The above are collectively referred to as the "Pledged Funds". The lien upon and pledge of the Pledged Funds is on a parity with the lien of the holders of the herein -described Parity Bonds and any Additional Parity Obligations which may be issued pursuant to the Resolution. Additional Security for Series 1991 Bonds and Parity Bonds The principal of, redemption premium, if any, and interest on the Series 1991 Bonds and the Parity Bonds will additionally be payable from and secured by a lien upon and pledge of the local government half -cent sales tax on deposit from time to time in the Local Government Half -Cent Sales Tax Clearing Trust Fund in the State Treasury of the State of Florida (the "Half -Cent Sales Tax"), allocated for and distributed monthly to the County pursuant to Chapter 218, Part VI, Florida Statutes. The lien upon and pledge of the Half -Cent Sales Tax is subordinate to the lien and pledge in favor of the herein -described Senior Half -Cent Sales Tax Bonds and any additional bonds issued on a parity with the Senior Half -Cent Sales Tax Bonds pursuant to the resolution which authorized the issuance of the Senior Half -Cent Sales Tax Bonds (the "Half -Cent Sales Tax Resolution"). See "THE PARITY BONDS" and "THE SENIOR HALF -CENT SALES TAX BONDS" herein. Also, in the event that at any time after the issuance of the Series 1991 Bonds there are no bonds outstanding under the Half -Cent Sales Tax Resolution and the County covenants not to thereafter issue any bonds under the Half -Cent Sales Tax Resolution, the Series 1991 Bonds and the Parity Bonds shall thereafter be secured by a lien upon and pledge of .ei hteenV •t 'percent -(1-8-%) of the Half -Cent Sales Tax and in such event the County irrevocably pledges said a ghte percent ( ) of the Half -Cent Sales Tax to the payment of t e principa of, interest and premium, if any, on the Series 199 Bonds and he Parity Bonds. The Series 1991 Bonds shall of be or onstitute general obligations or indebtedness of the County wit in the meaning of 6 -f u/ -l0_20► any constitutional or statutory limitation of indebtedness, but shall be payable from and secured by a lien upon and a pledge of the Pledged Funds and the Half -Cent Sales Tax. No holder of the Series 1991 Bonds shall ever have the right to compel the levy of ad valorem taxes to pay principal of, redemption premium, if any, and interest on the Series 1991 Bonds. The Series 1991 Bonds shall not constitute a lien upon any other property of the County, but shall constitute a lien only upon the Pledged Funds and the Half -Cent Sales Tax. Rate Covenant The County will, to the extent practicable, fix, establish, revise from time to time whenever necessary, maintain and collect always such fees, rates, rentals and other charges for the use of the services of the Project which will always provide Gross Revenues in each year sufficient to pay, and out of such funds pay, 100% of all Costs of Operation and Maintenance in such year, all Bond Service Requirements becoming due in such year on the outstanding Bonds and all reserve or other payments required by the Resolution. Reserve Account Under the Resolution, the County is required to establish a Reserve Account. The Reserve Account is required to be funded in an amount equal to the Reserve Account Requirement. The County may provide for this deposit to the Reserve Account either from the proceeds of the sale of Bonds, from other available moneys of the County and/or by providing an insurance policy or a letter of credit meeting the quality of credit criteria required by the Resolution. The Reserve Account Requirement for each series of Bonds is the amount determined by resolution of the County on or prior to the sale of the applicable series of Bonds. The County has established a Reserve Account Requirement of $ 2/ Y' ' for the Series 1991 Bonds, which amount the County will deposit into the Reserve Account upon delivery of the Series 1991 Bonds. Money in the Reserve Account shall be used only for the purpose of the payment of maturing principal of or interest on the Series 1991 Bonds and maturing Amortization Installments on Term Bonds, if any, when the other money in the Sinking Fund is insufficient therefor, and for no other purpose. Kunicipal Bond Insurance Payments of principal of and interest on the Series 1991 Bonds are to be insured through a policy to be issued by AMBAC Indemnity Corporation ("AMBAC Indemnity") which policy will take effect upon the delivery of the Series 1991 Bonds. See "MUNICIPAL 7 No BO D INSURANCE" herein and"SPECIMEN MUNICIPAL BOND INSURANCE POLICY" at ached hereto as Appendix D. dd tional Parity Obligations Additional Obligations on a parity with the Series 1991 Bonds and the Parity Bonds ("Additional Parity Obligations") be issued under the o :-- Qe so /ti 4 0" ) 5"`i (1) There shall have been obtained and filed with the Count. not later than the date of delivery of Additional Par Oblige ns, a certificate of a Qualified Independent Consu (a) state - that he has audited the books and records County relat • to the collection and receipt of the and Jai Alai Fr. ton Funds and Half -Cent Sales Tax; forth the amount • Racetrack and Jai Alai Fron Half -Cent Sales Tax r---ived by the County for tw out of the eighteen (18 months immediately of delivery of such Additio -1 Parity Obligat' which such certificate is made, and (c) sta and Jai Alai Fronton Funds and - f-Cen the payment of the principal of, in the Series 1991 Bonds and the Par Senior Half -Cent Sales Tax Bond month period is equal to at Service Requirement to beco Bonds then outstanding -nd proposed to be issued (2) The Co ty shall not be in default in comply ng with any of the cov- ants, terms or provisions in the Resoluti•• and all payment required by the Resolution to be made into the ds and acco s established thereunder shall have been made to ,e full - ent required. In addition, the County may issue additional bonds on a parity with the Senior Half -Cent Sales Tax Bonds as described under the caption "THE SENIOR HALF -CENT SALES TAX BONDS" herein. nt: of the acetrack setting n Funds and e (12) months ceding the date ns with respect to ng that the Racetrack ales Tax available for st and premium, if any, on nds after payment of the for su preceding twelve (12) east 1.25 t es the maximum Bond due in any ensui • Bond year on the the Additional Pa 'ty Obligations MUNICIPAL BOND INSURANCE Payment Pursuant to Municipal Bond Insurance Policy AMBAC Indemnity Corporation (the "Insurer") has made a commitment to issue a municipal bond insurance policy (the "Municipal Bond Insurance Policy") relating to the Series 1991 Bonds effective as of the date of issuance of the Series 1991 Bonds. Under the terms of the Municipal Bond Insurance Policy, AMBAC Indemnity will pay to the United States Trust Company of New York, in New York, New York or any successor thereto (the "Insurance Trustee") that portion of the principal of and 8 •fit f474tri,(- "' j2 n e y -11/i1 {;orn777x'"49" i---PA"-ft i "o�u -5A4W- �"8�-i s "taLa .` rs 51,00), �f�� Q X (- F �l' P l tk p . rp c AO o ip 111 be under �,,,®t, pu via IS; r Ao rods , bid i u^dJ _ J �% interest on the Series 1991 Bonds which shall become Due for Payment but shall be unpaid by reason of Nonpayment by the Issuer (as such terms are defined in the Municipal Bond Insurance Policy). AMBAC Indemnity will make such payments to the Insurance Trustee on the later of the date on which such principal and interest becomes Due for Payment or within one business day following the date on which AMBAC Indemnity shall have received notice of Nonpayment from the Paying Agent. The insurance will extend for the term of the Series 1991 Bonds and, once issued, cannot be cancelled by AMBAC Indemnity. The Municipal Bond Insurance Policy will insure payment only on stated maturity dates and on mandatory sinking fund installment dates, in the case of principal, and on stated dates for payment, in the case of interest. If the Series 1991 Bonds become subject to mandatory redemption and insufficient funds are available for redemption of all outstanding Series 1991 Bonds, AMBAC Indemnity will remain obligated to pay principal of and interest on outstanding Series 1991 Bonds on the originally scheduled interest and principal payment dates including mandatory sinking fund redemption dates. In the event of any acceleration of the principal of the Series 1991 Bonds, the insured payments will be made at such times and in such amounts as would have been made had there not been an acceleration. In the event the Paying Agent has notice that any payment of principal of or interest on a Series 1991 Bond which has become Due for Payment and which is made to a Bondholder by or on behalf of the Issuer has been deemed a preferential transfer and theretofore recovered from its registered owner pursuant to the United States Bankruptcy Code in accordance with a final, nonappealable order of a court of competent jurisdiction, such registered owner will be entitled to payment from AMBAC Indemnity to the extent of such recovery if sufficient funds are not otherwise available. The Municipal Bond Insurance Policy does not insure any risk other than Nonpayment, as defined in the Policy. Specifically, the Municipal Bond Insurance Policy does not cover: 1. payment on acceleration, as a result of a call for redemption (other than mandatory sinking fund redemption) or as a result of any other advancement of maturity. 2. payment of any redemption, prepayment or acceleration premium. 3. nonpayment of principal or interest caused by the insolvency or negligence of any Trustee or Paying Agent, if any. If it becomes necessary to call upon the Municipal Bond Insurance Policy, payment of principal requires surrender of the Series 1991 Bonds to the Insurance Trustee together with an appropriate 9 instrument of assignment so as to permit ownership of such Series 1991 Bonds to be registered in the name of AMBAC Indemnity to the extent of the payment under the Municipal Bond Insurance Policy. Payment of interest pursuant to the Municipal Bond Insurance Policy requires proof of Bondholder entitlement to interest payments and an appropriate assignment of the Bondholder's right to payment to AMBAC Indemnity. Upon payment of the insurance benefits, AMBAC Indemnity will become the owner of the Series 1991 Bond, appurtenant coupon, if any, or right to payment of principal or interest on such Series 1991 Bond and will be fully subrogated to the surrendering Bondholder's rights to payment. AMBAC Indemnity Corporation AMBAC Indemnity Corporation ("AMBAC Indemnity") is a Wisconsin - domiciled stock insurance company, regulated by the Insurance Department of the State of Wisconsin and licensed to do business in 50 states and the District of Columbia, with admitted assets of approximately $1,259,700,000 (unaudited) and statutory capital of approximately $752,200,000 (unaudited) as of March 31, 1991. Statutory capital consists of AMBAC Indemnity's policyholders' surplus and statutory contingency reserve. AMBAC Indemnity is a wholly-owned subsidiary of Citicorp Financial Guaranty Holdings, Inc. (Holdings") (formerly known as AMBAC, Inc.), a financial holding company and itself a wholly-owned subsidiary of Citibank, N.A. ("Citibank"). On May 1, 1991, AMBAC, Inc. ("AMBAC, Inc."), a financial holding company recently formed by Holdings, registered for sale with the Security and Exchange Commission 17,600,000 shares of its common stock. If the sale is completed, Citibank, through its affiliate Holdings, is expected to own approximately 49% of the total equity of AMBAC, Inc., with a right to cast 20% of the total number of votes of all shares of outstanding common stock of AMBAC, Inc. until such time as Citibank, including its affiliates, reduces its equity ownership to less than 25% of AMBAC, Inc. (at which time the shares owned by it become non- voting). Prior to the consummation of the proposed sale of common stock, AMBAC Indemnity will become a direct wholly owned subsidiary of AMBAC, Inc. The Wisconsin Insurance Department has stated that the sale of common stock described herein does not require its prior approval. Both Moody's Investors Service, Inc. and Standard & Poor's Corporation have reaffirmed that the proposed sale of the common stock of AMBAC, Inc. will not affect AMBAC Indemnity's triple-A claims -paying ability ratings. Copies of AMBAC Indemnity's financial statements prepared in accordance with statutory accounting standards are available from AMBAC Indemnity. The address of AMBAC Indemnity's administrative 10 offices and its telephone number are One State Street Plaza, 17th Floor, New York, New York, 10004 and (212) 668-0340. AMBAC Indemnity has entered into pro rata reinsurance agreements under which a percentage of the insurance underwritten pursuant to certain municipal bond insurance programs of AMBAC Indemnity has been and will be assumed by a number of foreign and domestic unaffiliated reinsurers. AMBAC Indemnity has obtained a ruling from the Internal Revenue Service to the effect that the insuring of an obligation by AMBAC Indemnity will not affect the treatment for federal income tax purposes of interest on such obligation and that insurance proceeds representing maturing interest paid by AMBAC Indemnity under policy provisions substantially identical to those contained in its municipal bond insurance policy shall be treated for federal income tax purposes in the same manner as if such payments were made by the issuer of the Bonds. AMBAC Indemnity makes no representation regarding the Series 1991 Bonds or the advisability of investing in the Series 1991 Bonds and makes no representation regarding, nor has it participated in the preparation of, the Official Statement other than the information supplied by AMBAC Indemnity and presented under the heading "MUNICIPAL BOND INSURANCE". Moody's Investors Service rates all bond issues insured by AMBAC Indemnity "Aaa" and short term loans "MIG -1", both designated to be of the highest quality. Standard & Poor's Corporation rates all new issues insured by AMBAC Indemnity "AAA" Prime Grade. The Moody's Investors Service rating of AMBAC Indemnity should be evaluated independently of the Standard & Poor's Corporation rating of AMBAC Indemnity. No application has been made to any other rating agency in order to obtain additional ratings on the Series 1991 Bonds. The ratings reflect the respective rating agency's current assessment of the creditworthiness of AMBAC Indemnity and its ability to pay claims on its policies of insurance. Any further explanation as to the significance of the above ratings may be obtained only from the applicable rating agency. The above ratings are not recommendations to buy, sell or hold the Series 1991 Bonds, such ratings may be subject to revision or withdrawal at any time by the rating agencies. Any downward revision or withdrawal of either or both ratings may have an adverse effect on the market price of the Series 1991 Bonds. The insurance provided by the Municipal Bond Insurance 11 Policy is not covered by the Florida Insurance Guaranty Association created under Chapter 631, Florida Statutes. The information relating to AMBAC Indemnity contained above has been furnished by AMBAC Indemnity and neither the County nor the Underwriter have undertaken any independent investigation of the operations of AMBAC Indemnity. No representation is made herein as to the accuracy or adequacy of such information or as to the absence of material adverse changes in such information subsequent to the date hereof. The County and the Underwriter make no representation as the ability of AMBAC Indemnity to make payments under the Municipal Bond Insurance Policy. See "APPENDIX D - SPECIMEN MUNICIPAL BOND INSURANCE POLICY". A Statement of Insurance relating to the Municipal Bond Insurance Policy will be printed on the Series 1991 Bonds. THE PARITY BONDS The County issued its $2,720,000 Recreational Revenue Bonds, Series 1985 (the "Parity Bonds"), in April of 1986, pursuant to the Resolution, to construct and equip an eighteen hole public golf course and related clubhouse facilities to be owned and operated by the County. The Parity Bonds are presently outstanding in the aggregate principal amount of $2,720,000, with a final maturity date of September 1, 2015. The Parity Bonds are secured by a lien on and pledge of the Pledged Funds on a parity with the lien and pledge of such revenues in favor of the holders of the Series 1991 Bonds. THE SENIOR HALF -CENT SALES TAX BONDS The County issued its $9,855,000 Refunding and Improvement Revenue Bonds, 1985 Series in November of 1985 and its $3,655,000 Capital Improvement Revenue Bonds, 1987 Series in July of 1987 (collectively, the "Senior Half -Cent Sales Tax Bonds"), to finance or refinance certain capital improvements in the County. The Senior Half -Cent Sales Tax Bonds are presently outstanding in the aggregate principal amount of $11,865,000, with a final maturity date in 2005. The Senior Half -Cent Sales Tax Bonds are secured by a lien on and pledge of the Half -Cent Sales Tax which is prior and superior to the lien and pledge of the holders of the Series 1991 Bonds and the Parity Bonds. In the Resolution, the County has covenanted not to issue additional bonds on a parity with the Senior Half -Cent Sales Tax Bonds (except for refunding bonds) unless the Half -Cent Sales Tax receipts and Racetrack and Jai Alai Fronton Funds for either the immediately preceding Fiscal Year or any twelve consecutive months of the eighteen months immediately preceding the date of sale of such additional bonds are equal to at least 1.35 times the maximum debt service requirement on the Senior Half -Cent Sales Tax Bonds, the Series 1991 Bonds, the Parity Bonds, and 12 Additional Parity Obligations at the time outstanding, and the additional bonds proposed to be issued. See the caption "HALF - CENT SALES TAX". The following table shows the future debt service on the Senior Half -Cent Sales Tax Bonds: Refunding and Capital Year Improvement Improvement Ending Revenue Bonds, Revenue Bonds, Sept. 30 1985 Series (1) 198 Series (2) Total 1991 $1,060,076.25 $368,522.50 $1,428,598.75 1992 1,062,506.25 371,097.50 1,433,603.75 1993 1,062,343.75 367,760.00 1,430.103.75 1994 1,064,387.50 368,760.00 1,433,147.50 1995 1,063,106.25 368,840.00 1,431,946.25 1996 1,063,350.00 367,960.00 1,431,310.00 1997 1,059,537.50 371,080.00 1,430,617.50 1998 1,062,100.00 367,820.00 1,429,920.00 1999 1,059,400.00 368,470.00 1,427,870.00 2000 1,062,650.00 367,630.00 1,430.280.00 2001 1,065,950.00 370,475.00 1,436,425.00 2002 1,062,987.50 370,712.50 1,433,700.00 2003 1,059,550.00 369,400.00 1,428,950.00 2004 1,060,181.25 371,537.50 1,431,718.75 2005 1,063,968.75 371,737.50 1,435,706.25 2006 -0- -0- -0- (1) The County's $9,855,000 Refunding and Improvement Revenue Bonds, 1985 Series, were originally issued in November of 1985 and as of August 1, 1991 are outstanding in the principal amount of $8,580,000. (2) The County's $3,655,000 Capital Improvement Revenue Bonds, 1987 Series, were originally issued in July of 1987 and as of August 1, 1991, are outstanding in the principal amount of $3,285,000. 13 ESTIMATED SOURCES AND USES OF FUNDS The following table sets forth the estimated sources and uses of funds: Sources: Uses: Par Amount of the Series 1991 Bonds Accrued Interest Interest earned during Construction TOTAL SOURCES: Deposit to Project Fund Estimated Costs of Issuance Deposit to Reserve Account Underwriter's Discount Original Issue Discount Capitalized Interest Accrued Interest TOTAL USES: $6, 05, 000-e 22, Oa 9 iso, Goo .00 S c2/7,060.cfQ $`4510,OGO g!,000 522,,-17'5 724180 65,665:`?5 goys, 20'7->5 l,:3w. r6 22,060.47 S t 21-7,060. `ti gcvd .Tnsvrrn cQ 59,x77.14 14 07/22/91 18:32 1, INDIAN RIVER COUNTY, FLORIDA RECREATIONAL REVENUE BONDS, SERIFS 1991 Debt Service Frani 08/01/91 Date Pr ;Pal Rate Irit st Annual 0/S 09/01/92 430,179.48 430,179.48 09/01/93 397,088.75 397,088.75 09/01/94 125,000 5.350 397,088.75 522,088.75 09/01/95 130,000 5.550 390,401.25 520,401.25 09/01/96 135,000 5.700 383,186.25 518,186.25 09/01/97 145,000 5.750 375,491.25 520,491.25 09/01/98 155,000 5.900 367,153.75 522,153.75 09/01/99 165,000 6.000 358,008.75 523,008.75 09/01/00 170,000 6.100 348,108.75 518,108.75 09/01/01 185,000 6.200 337,738.75 522,738.75 09/01/02 -195,000 6.750 326,268.75 521,268.75 09/01/03 210,000 6.750 313,106.25 523,106.25 09/01/04 220,000 6.750 298,931.25 518,931.25 09/01/05 235,000 6.750 284,081.25 519,081.25 09/01/06 ,250,000 6.750 268,218.75 518,218.75 09/01/0? 270,000 6.875 251,343.75 521,343.75 09/01/08 290,000 6.875 232,781.25 522,781.25 09/01/09 305,000 6.875 212,843.75 517,843.75 09/01/10 330,000 6.875 191,875.00 521,875.00 09/01/11 50,000 6.875 169,187.50 519,187.50 09/01/12 75,000 6.750 145,125.00 520,125.00 09/01/13 400,000 6.750 119,812.50 519,812.50 09/01/14 430,000 6.750 92,812.50 522,812.50 09/01/15 455,000 6.750 63,787.50 518,787.50 09/01/16 490,000 6.750 33,075.00 523,075.00 Tata& 6,015,000 6,787,695.73 12,802,695.73 Accrued thru 08/21/91 22,060.49 22,060.49 Net Cost 6,765,635.24 12,780,635.24 Average Coupon 6.718 Bond Years 100,702.083 Average Lite 16.742 VILtise R. Hough & Co. Fite:IR1 07/22/91 15:57 I003f004 DEBT SERVICE REQUIREMENTS The following table shows the annual principal (including mandatory sinking fund redemption) and interest requirements on the Series 1991 Bonds and the annual debt service requirements on the Parity Bonds. Year Series 1991 Series 1991 ending Bonds Bonds Parity Bonds Sept.30 Principal Interest Debt Service Total 1992 $ $ $243,800 $ 1993 245,830 1994//�� 242,430 1995 �n ivy`^�'CiV M1 243,980 / 1996 / 'I, 245,130 %ai 71 1997_rr 240,870 1998 f/a-''^ Fr*,, 241, 550 1999L�1/ 11�� 241, 805 2000 c /7� M /-)< 241,625 2001 246,075 2002 244,785 2003 243,125 2004 246,000 2005 243,125 2006 244,875 2007 240,875 2008 241,500 2009 241,375 2010 245,500 2011 243,500 2012 240,750 2013 242,250 2014 242,625 2015 241,875 2016 0 15 TEE PROJECT The Existing Facility The Sandridge Golf Course is currently an 18 hole public golf course and has related facilities located at 5300 73rd Street in the unincorporated north central part of Indian River County. Because the golf course is adjacent to a sand ridge that runs through central Indian River County, the golf course has more changes in elevation than the typical Florida course. Sandridge was one of only fifty golf facilities to receive the National Golf Foundation's Inaugural Public Golf Achievement Award for 1990. The golf course currently has 28 full time and 10 part time employees, all under the supervision of golf course professional and director Robert J. Komarinetz. Mr. Komarinetz has managed the golf course since September of 1986 and has been a professional golfer and golf course manager since 1966. The golf course opened for play in April of 1987. The following table shows the number of rounds played since that time: Year Number of (October 1 - September 301 Rounds Played 1986-1987 (6 months) 1987-1988 1988-1989 1989-1990 1990-1991 (6 months) 17,060 63,474 75,946 80,534 45,070 Green fees and cart are currently $25.00 from October through April and from $16.00 from May through September for County residents and $29.00 and $18.50 for such dates for non -County residents. The County has identified nine golf courses available for public play as competing with Sandridge. A list of those courses, their distance from Sandridge and their rates is as follows: ;�•,ourse Dodger Pines Sebastian C.C. Indian Pines Vista Royale Harbor City Indian Hills ;Melbourne Turtle Creek ';ator Trace Average (1) Rates for 1M Type Semi -Private Semi -Private Semi -Private Semi -Private Municipal Semi -Private Municipal Semi -Private Semi -Private 1990 Distance from Rates(1) Sandridge Winter Summer 4 miles $30.00 $18.50 5 miles 27.00 16.00 10 miles 28.00 20.00 10 miles 30.00 n/a 30 miles 26.55 26.55 30 miles 26.00 20.00 30 miles 26.55 26.55 40 miles 39.00 31.00 40 miles 40.00 22.00 $30.34 $22.58 16 In addition there are 10 private golf courses in Indian River County that are not available for play by the general public. The 1991 Project The 1991 Project will consist of the construction of an additional 18 holes to the Sandridge Golf Course, and construction of a permanent 7,000 square foot clubhouse, a golf cart building and a maintenance building. The golf course portion of the 1991 Project is being designed by Links Design, Inc., which designed the original 18 holes. The President of Links Design, Inc. is Ronald M. Garl, and he and his company have designed over 125 golf courses, 76 of which are in the State of Florida. According to the most recent annual report in "Florida Golfer", seven of Florida's top 60 golf courses were designed by Ron Garl. Kimley- Horn and Associates, Inc. is the project engineer for the golf course portion of the 1991 Project. The clubhouse, golf course building and maintenance building are being designed by C. E. Block, a Vero Beach based architect. The golf course construction at the new 18 holes at Sandridge will generally involve the following: (1) clearing, (2) lake excavation, (3) shaping of golf course features, (4) installation of irrigation system, and (5) grassing of the golf course. The new 18 holes at Sandridge will present a par 72 golf course 6,250 yards in length, with a challenging, diverse golf course design. With the strategic location of hazards and bunkers, multiple tee placement, and the incorporation of wetlands and native vegetation, this new course will challenge all levels of ability. The course will promote shot value and a playable balance (appropriate mix of hole distances) which should test every club in a player's bag. Today, a more sophisticated public golfer is looking for new courses having the quality and distinction of Sandridge, and the new 18 holes will certainly add to the unique golfing experience already found at Sandridge. 17 The above -referenced professionals have the 1991 Project to be as follows: Golf Course Design and Engineering Construction (1) Future Modifications Maintenance Equipment Grow -in Costs (2) Other Structures and Improvements Impact Fees estimated the cost of Sub -Total Club House. Golf Cart Building and Maintenance Design and Engineering Clubhouse Clubhouse Furnishings Golf Cart Building Maintenance Building Land Contingency Sub -Total $ 264,466 2,121,308 42,426 190,000 150,000 172,500 53.800 Building $2,994,500 $ 43,200 530,000 50,000 150,000 110.000 $ 883,200(3) $ 482,000 227.131 Total $4,586,831 (1) Excludes costs of stripping and plating and certain drainage facilities. (2) Excludes costs of certain survey work, electrical work, landscaping and water supply wells and pumps, if needed. (3) Excludes cost of constructing parking lot expansion. Construction is scheduled to begin in March of 1992 and the new golf course and clubhouse facilities are expected to be fully operational and ready for play in January of 1993. 18 Historical Revenues and Expenses The following table shows the historical operating and expenses for the Sandridge golf course. Year Ended September 30 1987 1988 1989 (6 months) :)venues Pro Shop Sales $ Green Fees Cart Rentals Food and Beverage Sales Other Income )tal Revenues gpenses 14,521 170,206 63,499 16,619 32.854 Salaries and Benefits $ Materials and Supplies Depreciation and Amortization 0:al Expenses 0: Revenues Available for Debt Service (1) Inual Debt Service (2) $297,699 260,140 204,761 181.517 $ 646,418 $ 50,520 687,667 259,247 89,587 38.368 $1,125,389 $ 451,276 390,639 361.550 $1,203,465 $ 55,654 783,363 292,848 122,421 59.077, $1,313,363 $ 539,902 430,128 367.822 1990 $ 70,460 939,343 318,019 131,002 67,797, $1,526,621 $ 618,532 480,693 342,959 revenues 1991 (October 1, 1990 -March 1, 1991) $ 32,974 444,562 168,856 48,260 34.960 $729,612 $278,948 178,947 125.958 $1,337,852 $1,442,184 $ 583,853 (167,202) 283,474 343,333 427,396 271,717 201,360 201,360 100,567(3) L] Total revenues less total expenses exclusive of depreciation and nortization. O Annual debt service on the Parity Bonds. Interest on the Parity )nds was capitalized out of bond proceeds until September 1, 1988. O Prorated for the five month period. 111 19 Historical Revenues and Expenses The following table shows the historical operating and expenses for the Sandridge golf course. Year Ended September 30 1987 1988 1989 (6 months) Revenues Pro Shop Sales $ Green Fees Cart Rentals Food and Beverage Sales Other Income Total Revenues Expenses 14,521 170,206 63,499 16,619 32.854 Salaries and Benefits $ Materials and Supplies Depreciation and Amortization Total Expenses Net Revenues Available for Debt Service(1) Annual Debt Service (2) $297,699 260,140 204,761 181, 517 $ 646,418 (167,202) $ 50,520 687,667 259,247 89,587 38.368 $1,125,389 $1,313,363 $ 55,654 783,363 292,848 122,421 59.077 $ 451,276 390,639 361.550 $1,203,465 283,474 $ 539,902 430,128 367.822 $1,337,852 343,333 201,360 1990 $ 70,460 939,343 318,019 131,002 67.797 $1,526,621 $ 618,532 480,693 342.959 $1,442,184 revenues 1991 (October 1, 1990 -March 1, 1991) $ 32,974 444,562 168,856 48,260 34.960 $729,612 $278,948 178,947 125.958 $ 583,853 427,396 271,717 201,360 100,567(3) (1) Total revenues less total expenses exclusive of depreciation and amortization. (2) Annual debt service on the Parity Bonds. Interest on the Parity Bonds was capitalized out of bond proceeds until September 1, 1988. (3) Prorated for the five month period. 19 RACETRACK AND JAI ALAI FRONTON FONDS Tames on Pari -Mutual Wagering Chapters 550 and 551, Florida Statutes, provide for the levy, collection and distribution of taxes based upon a percentage of the total wagering through the pari-mutuel operated pools on every horse and dog track and jai alai fronton in the State and on every race or game at such tracks or frontons and, also, a 15% tax (or ten cents, if greater) on entrance gate admissions charged for such races or games. The Division of Pari-mutuel Wagering of the Florida Department of Business Regulation (the "Division") supervises all pari-mutuel wagering throughout the State. The State receives as a tax on all horse racing performances an amount equal to 3.3% of the "handle" in excess of $300,000 for each performance per day with certain exceptions. "Handle" is defined as the aggregate of contributions to all pari-mutuel pools on races conducted by the permit holder. The State also receives (i) as a tax on dog racing, an amount equal to 7.6% of the handle in excess of $25,000 for each performance per day with certain exceptions, and (ii) as a tax on all jai alai fronton performances, an amount equal to 7.1% of the handle in excess of $25,000 for each performance per day with certain exceptions. In addition to the foregoing taxes, the State receives, as a tax, an amount equal to the "breaks" from each permit holder conducting dog racing and jai alai performances. "Breaks" represent that portion of each pari-mutuel pool which is not redistributed to the wagering public or withheld by the track. All amounts received by the State as admission tax, tax on the handle, and tax on the breaks are deposited with the State Treasurer; one-half (1/2) of that amount is credited to the Pari-mutuel Wagering Trust Fund, and the remaining half is credited to the General Revenue Fund. All amounts received from occupational licenses from those persons connected with a racetrack, administrative fines and penalties, and other miscellaneous receipts associated with pari-mutuel activity are also credited to the Pari-mutuel Wagering Trust Fund. All moneys deposited to the credit of the Pari-mutuel Wagering Trust Fund shall be distributed in the following manner: (1) In each fiscal year, the sum of $29,915,500 is divided into as many equal parts as there are counties in the State of Florida (67) and one part is distributed to each county; any excess of such moneys is transferred to the General Revenue Fund. (2) If the sum available for distribution in the Pari- mutuel WageringTrust Fund is less than $29,915,500, the deficiency shall be paid into the Pari-mutuel Wagering Trust Fund from the 20 General Revenue Fund up to the amount of the deficiency if the deficiency does not exceed the deposits of pari-mutuel tax collections to the General Revenue Fund for that particular fiscal year. (3) Distributions to the counties commence each fiscal year on or before January 5th and continue monthly for a total of four months. If on April Sth the sums distributed to the counties do not equal the maximum sum to be distributed, then the Division shall immediately transfer to the Pari-mutuel wagering Trust Fund from the General Revenue Fund in the manner stated above, the sums required to pay each county the sum to which it is entitled. (4) After payments to the counties have been completed as described above, all unappropriated funds in the Pari-mutuel Wagering Trust Fund shall be deposited to the credit of the General Revenue Fund. Right of Cancellation by Voters A permit to operate a horse track, dog track or jai alai fronton in any county is subject to cancellation by the voters of that county. Section 550.18, Florida Statutes, provides that: Upon petition of twenty percent of the qualified electors of any county wherein any racing has been licensed and conducted . . . the county commissioners of such county shall provide for the submission to the electors of such county at the then next succeeding general election the question of whether any permit or permits theretofore granted shall be continued or revoked, and if a majority of the electors voting on such question in such election shall vote to cancel or recall the permit theretofore given, then the division of pari-mutuel wagering shall not thereafter grant any license on the permit so recalled. Chapter 551, Florida Statutes, subjects a permit to operate a jai alai fronton to the same conditions as a permit to operate a dog or horse track. History of Total Revenues and Distributions The following table shows a ten year history (1981-1990) of pari- mutuel revenues and the manner in which they have been distributed. 21 htl0 No `0 1N0 110 110 1NO 1ND 1N0 110 00 O1O00O0v0117 4 03 CO 6WNN A 0 A W W W W W W W .•. . . . 10N1D00J0101ao1J Ch Fa N OWFaNt�J11O0WOFa 1N711N11CN►ON1CN10N10N'JCN1v . . . . . . . . . AaJl71N4U) O NOON++�P CD Fa UD co tn 4u W NN10A 1711ONJ W 0000N1000 N011OWON0►10JJ 01NNC1NC1NaJA NNNNNN Fa .- + - - J 00O 1D CO CO 00 a J C1 tn0lit464uN{JIN00 OO C1AJ00AAN W . . . . . . . . . . �NF+NJ01F+ c) 0.4Wi�N NW0O0W1N71ON1W05(A . . . . . . . . . . O AAOOOCD CDMOhi O N N JO 1010 10 14D 10 A A 00 00 00 W N N N W N N N NF+ N N N 1763 N N N A00O10 W WN OlfINO 1O71 46. Chhi4 46 WvWAN0O1 1D C1N100000OCD W Na . . . . . . . . . . NJtn00OC►NJ W AN • N N N N N N N N N 10 10 10 10 10 1D 10 10 1D 10 10 1O 11) 1O 1O i0 10 1O 10 c0 ti;GGGb tbL 8888888888 • A A A A A AA A A A A A A A 44 A A Q1 01 0► 01 Q1 0 0 0 01 01 8888888888 PEP RALF-CENT BALES TAX Pursuant to Chapter 212, Florida Statutes, the State of Florida is authorized to levy and collect a 6% sales tax on, among other things, the sales price of each item or article of tangible personal property sold at retail in the State of Florida, subject to certain exceptions and dealer allowances. Part VI, Chapter 218, Florida Statutes, as amended (the "Sales Tax Act"), currently provides that 9.888% of the proceeds remitted to the State of Florida by a sales tax dealer located within a particular county (the "Half -Cent Sales Tax") is required to be deposited in the Local Government Half -Cent Sales Tax Clearing Trust Fund in the State Treasury (the "Half -Cent Sales Tax Trust Fund") and is ear -marked for distribution to the governing body of such county and of each participating municipality within that county pursuant to a distribution formula. The Half -Cent Sales Tax is distributed from the Trust Fund on a monthly basis to participating units of local government in accordance with the Half -Cent Sales Tax Act. The Half -Cent Sales Tax collected within a county is distributed to the governing body of each county and to participating municipalities within each such county in accordance with the following formula: County's Share (percentage of total Half -Cent Sales Tax receipts) Each Municipality's Share (percentage of = total Half -Cent Sales Tax receipts) unincorporated area population total County population 2/3 incorporated + area population 2/3 incorporated + area population municipality total County population + population 2/3 incorporated area population The formula is revised each year based upon the population estimates prepared by the University of Florida, Bureau of Economic and Business Research. Because distribution of the Half -Cent Sales Tax is based on the population of unincorporated areas within the County relative to the population of incorporated municipalities within the County, the County's share of the Half -Cent Sales Tax would be reduced if unincorporated areas of the County were to be annexed by an existing municipality within the County or if unincorporated areas of the County were to become incorporated municipalities. 23 The County has complied with all of the requirements set forth in the Half -Cent Sales Tax Act for the current fiscal year, including the filing of a certificate of compliance with the State Department of Revenue, which is necessary in order for the County to receive its portion of funds from the Half -Cent Sales Tax Trust Fund during the 1990-1991 fiscal year. The following table shows a five year history (1986-1990) of the half -cent sales tax revenues in Indian River County: Year Ended Sept. 30 1986 1987 1988 1989 1990 1991(1) Half -Cent Sales Tax Collected $2,770,565 3,152,453 4,087,973 4,368,637 4,265,372 Amount Distributed to Municipalities $ 774,579 875,506 1,351,806 1,218,750 1,139,277 Amount Distributed to Indian River Co. $1,995,986 2,276,947 2,736,167 3,149,887 3,126,095 3,579,246 (1) Budgeted For the 7 month period ended April 30, 1991, the County received $2,434,449 in Half -Cent Sales Tax revenues. 24 HISTORICAL AND ESTIMATED REVENUES AND DEBT SERVICE COVERAGE (1) The following table sets forth the historical and estimated Pledged Funds of the County for the Fiscal Years indicated. Gross Revenues Cost of Operation and Maintenance Net Revenues Racetrack and Jai Alai Fronton Funds Excess Half -Cent Sales Tax (4) Total Pledged Funds Maximum Annual Debt Service (5) EIBTORICAL (2) 1988 1989 1,125,389 1,313,313 841.915 283,474 963.418 349,895 446,500 446,500 1990 EDDGETED ESTIMATED (3) (3) 1991 1992 1,526,621 1,507,480 1,555,180 1.098.544 1.291.283 1.174.486 428,077 216,197 380,694 446,500 446,500 1.309.011 1.714.130 1.689.862 2.150.647 2. 2,038,985 2 7C.) S/ (-1 1 -68 -7§59 -- Ratio of Total Pledged Funds to Maximum Annual ?,6j Debt Service (5) ,510,525 2, Wgi8/N 564,439 2, xg) /lelyzrim LI Z68 ; a5tr 3.?) 446,500 165.454 813,344 2, -2624/11 o 701-55-0 992,148 -74 50 3,6{, 3 8/ •3-r6�� .3�8�4-� Fiscal Years ended or ending September 30. Based on County's Audited Financial Statements. Based upon the County's budget for the fiscal year ending September 30, 1991, and the County's preliminary budget for the fiscal year ending September 30, 1992. Half -Cent Sales Tax revenues remaining after payment of debt service on the Senior Half -Cent Sales Tax Bonds. This does not include debt service from additional bonds which may be issued under the Half -Cent Sales Tax Resolution. See the caption "THE SENIOR HALF -CENT SALES TAX BONDS" herein. Maximum Annual Debt Service on the Series 1991 Bondse- age-interest-rate"ar7.15% and the Parity Bonds. 25 HISTORICAL AND ESTIMATED REVENUES AND DEBT SERVICE COVERAGE (1) The following table sets forth the historical and estimated Pledged Funds of the County for the Fiscal Years indicated. Gross Revenues Cost of Operation and Maintenance Net Revenues Racetrack and Jai Alai Fronton Funds Excess Half -Cent Sales Tax (4) Total Pledged Funds Maximum Annual Debt Service (5) HISTORICAL (2) 1988 1989 1,125,389 1,313,313 841.915 283,474 446,500 963.418 349,895 1990, BUDGETED ESTIMATED (3) (3) 1221 1992 1,526,621 1,507,480 1,555,180 1.098.544 1.291.283 1.174.486 428,077 216,197 380,694 446,500 446,500 446,500 446,500 1.309,011 1.714.130 1.689.862 2.150.647 2.165.454 2,038,985 2 76-.8)3•/c1 -7-0155440- Ratio of Total Pledged Funds to Maximum Annual 2,G�` Debt Service (5) ,510,525 2 76ki 8/(-1 ,564,439 2,813,344 -7(g)8114 "762)g/ tf '7, j o 7_68-x550 7-68-55-0 3, 2) 3,31- 3-644- 2,992,148 nmay 50 Fiscal Years ended or ending September 30. Based on County's Audited Financial Statements. Based upon the County's budget for the fiscal year ending September 30, 1991, and the County's preliminary budget for the fiscal year ending September 30, 1992. Half -Cent Sales Tax revenues remaining after payment of debt service on the Senior Half -Cent Sales Tax Bonds. This does not include debt service from additional bonds which may be issued under the Half -Cent Sales Tax Resolution. See the caption "THE SENIOR HALF -CENT SALES TAX BONDS" herein. Maximum Annual Debt Service on the Series 1991 Bonds.-. assuating-azraverage-interest-rate-or7-;15% and the Parity Bonds. 25 VALIDATION The Series 1991 Bonds were validated in a total amount not to exceed $6,500,000 by a Final Judgment of the Circuit Court of the Nineteenth Judicial Circuit of Florida, in and for Indian River County, rendered on July 17, 1991. The time for an appeal will expire on August 16, 1991. The Series 1991 Bonds will not be issued if an appeal is pending on the proposed closing date. LITIGATION In the opinion of the County Attorney there is no controversy or litigation now pending or, to the best of the County's knowledge, threatened, which seeks to restrain or enjoin the execution, issuance, sale or delivery of the Series 1991 Bonds or that in any way contests the validity of the Series 1991 Bonds; or any proceedings of the County taken with respect to the authorization, sale, or issuance of the Series 1991 Bonds, or the imposition of the rates, fees and charges for the use of the Project, or the pledge or application of any monies provided for the payment of or security for the Series 1991 Bonds. RATINGS Moody's Investors Service, Inc. and Standard & Poor's Corporation have assigned their municipal bond ratings of "Aaa" and "AAA", respectively, to the Series 1991 Bonds with the understanding that upon delivery of the Series 1991 Bonds, a policy of municipal bond insurance insuring the payment when due of principal of and interest on the Series 1991 Bonds will be issued by AMBAC Indemnity. Such ratings reflect only the views of the rating agencies, and an explanation of the significance of such ratings may be obtained from the applicable rating agency. There is no assurance that such ratings will continue for any given period of time or that they will not be revised or withdrawn entirely by such rating agencies, if in their judgment, circumstances so warrant. Any downward revision or withdrawal of such ratings may have an adverse effect upon the market price of the Series 1991 Bonds. FINANCIAL STATEMENTS The County's general purpose financial statements at September 30, 1990 and for the year then ended, included as Appendix B hereto, have been audited by Coopers & Lybrand, 26 independent accountants, as set forth in their report dated January 31, 1991, which is a part of Appendix B attached hereto. APPROVAL OF LEGALITY Certain legal matters incident to the authorization, issuance, sale and delivery of the Series 1991 Bonds, and the treatment of the interest thereon for federal income tax purposes, are subject to the approval of Rhoads & Sinon, Boca Raton, Florida, Bond Counsel, whose approving opinion in substantially the form attached hereto as APPENDIX E will be printed on all of the Series 1991 Bonds. In its capacity as Bond Counsel, Rhoads & Sinon has participated in the preparation of, and has reviewed those portions of this Official Statement contained under the captions "DESCRIPTION OF THE SERIES 1991 BONDS," "SECURITY FOR THE SERIES 1991 BONDS," "APPROVAL OF LEGALITY," "TAX EXEMPTION," and the "SUMMARY OF CERTAIN PROVISIONS OF THE RESOLUTION" contained in APPENDIX C to this Official Statement and the language on the cover and in the summary of this Official Statement relating to the Series 1991 Bonds, the Resolution and the tax-exempt status of the Series 1991 Bonds. The firm has not been retained to pass upon, and will not express any opinion upon, any other information contained in this Official Statement or that may be made available to prospective purchasers of the Series 1991 Bonds. Certain legal matters will be passed upon for the County by the County Attorney, Charles P. Vitunac, Vero Beach, Florida, and for the Underwriter by its counsel, Boose Casey Ciklin Lubitz Martens McBane & O'Connell, West Palm Beach, Florida. TAX EXEMPTION Opinion of Bond Counsel In the opinion of Rhoads & Sinon, Boca Raton, Florida, Bond Counsel, assuming continuing compliance by the County with certain covenants to comply with provisions of the Internal Revenue Code of 1986, as amended (the "Code"), to preserve the exclusion of interest on the Series 1991 Bonds from gross income for federal income tax purposes, interest on the Series 1991 Bonds is excluded from gross income for purposes of federal income taxation and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, under existing statutes, regulations and judicial decisions; although it should be noted that in the case of corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current 27 earnings for purposes of such alternative minimum tax. Bond Counsel expresses no other opinion with regard to federal income tax consequences arising with respect to the Series 1991 Bonds. The Series 1991 Bonds and the income therefrom are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations, banks, and saving associations. Non -Arbitrage Bonds The County will issue its certificate to the effect that on the basis of the facts, estimates and circumstances in existence on the date of delivery of the Series 1991 Bonds, it is not expected that proceeds of the Series 1991 Bonds will be used in a manner that would cause the Series 1991 Bonds to be "arbitrage bonds". Such certificate will be accompanied by an opinion of Bond Counsel, based upon the facts, estimates and circumstances set forth in said certificate, that the Series 1991 Bonds are not currently "arbitrage bonds," under existing statutes, regulations and decisions. The County has also covenanted in the Resolution with the purchasers of the Series 1991 Bonds that it will make no use of the proceeds of the Series 1991 Bonds which will cause the Series 1991 Bonds to become "arbitrage bonds," and has further covenanted in the Resolution to comply with the requirements of Section 103 and 148 of the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder from time to time, during the term of the Series 1991 Bonds, if and to the extent applicable to maintain continuously the exclusion of interest on the Series 1991 Bonds from gross income for Federal income tax purposes. Corporate Alternative Minimum Taxes; Environmental Tax; Branch Profits Tax Interest on the Series 1991 Bonds may be includable in a corporation's "adjusted net book income" upon which alternative minimum taxable income is calculated and such interest may also be included in corporate alternative minimum taxable income that is subject to the environmental tax imposed under Section 59A of the Internal Revenue Code of 1986, as amended (the "Code"). In addition, such interest may be includable in the amount upon which certain foreign corporations are required to pay the branch profits tax imposed under Section 884 of the Code. Prospective 28 corporate purchasers of the Series 1991 Bonds should consult their professional tax advisors concerning the potential impact of receipt of interest income on such bonds upon their Federal tax liability. Financial Institutions' Costa of Carrying Tax-Exempt Bonds Under the Code, financial institutions are denied 100 percent of the interest expense deduction that is allocable, by formula, to the carrying of tax-exempt obligations acquired after August 7, 1986; the former provision of the Internal Revenue Code of 1954, which provided for a 20 percent disallowance of the interest expense deduction, continues to apply with respect to tax-exempt obligations acquired on or before August 7, 1986, as well as to new issues specifically designated as "qualified tax- exempt obligations" under Section 265 of the Code. The Series 1991 Bonds have not been designated by the County as "qualified tax-exempt obligations" for the purposes of Section 265 of the Code. (� /Ae yers Original Issue Discount "5"173v4e'- /,71Y1 S7.'9.1e 4w- / 62/'‘ In the opinion • Bond Counsel, under existing law, the original issue discount in the selling price of each Series 1991 Bonds maturing en- , to the extent properly allocable to each holder of such Series 1991 Bond, will be excluded from gross income for federal income tax purposes with respect to such holder. The original issue discount is the excess of the stated redemption price at maturity of such Series 1991 Bonds over the initial offering price to the public, excluding underwriters and other intermediaries, at which price a substantial amount of such Bonds were sold. Under section 1288 of the Code, original issue discount on tax-exempt bonds accrues on a compound basis. The amount of original issue discount that accrues to a holder of a Series 1991 Bond who acquires the Series 1991 Bond in this offering during any accrual period generally equals (i) the issue price of such Series 1991 Bond plus the amount of original issue discount accrued in all prior accrual periods, multiplied by (ii) the yield to maturity of such Series 1991 Bond (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period), less (iii) any interest payable on such Series 1991 Bond during such accrual period. The amount of original issue discount so accrued 29 in a particular accrual period will be considered to be received ratably on each day of the accrual period, will be excluded from gross income for federal income tax purposes, and will increase the holder's tax basis in such Series 1991 Bond. Any gain realized by a holder from a sale, exchange, payment or redemption of a Series 1991 Bond would be treated as gain from the sale or exchange of such Series 1991 Bond. Other Federal Income Tax Consequences Ownership of the Series 1991 Bonds may also result in other Federal income tax consequences to certain taxpayers, including, but not limited to, financial institutions, property and casualty insurance companies, certain subchapter S corporation with substantial passive income and subchapter C earnings and profits, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry the bonds. No opinion or representation concerning these matters is being given or made by the County, Bond Counsel or any other party associated with issuance, offering or sale of the Series 1991 Bonds. Prospective purchasers of the Series 1991 Bonds should consult their own tax advisors concerning these matters. UNDERWRITING William R. Hough & Co. (the "Underwriter") has agreed, subject to certain conditions, to purchase the Series 1991 Bonds from the County at an aggregate discount of $/7,fs4f 5-9,5from the initial public offering prices set forth on the cover page of this Official Statement. This discount includes an original issue discount of $ C5#5. ,'S . The Underwriter's obligation is subject to certain conditions precedent, and it will be obligated to purchase all the Series 1991 Bonds if any Series 1991 Bonds are purchased. The Series 1991 Bonds may be offered and sold to certain dealers (including dealers depositing such Series 1991 Bonds into investment trusts) at prices lower than such public offering prices, and such public offering prices may be changed, from time to time, by the Underwriter. 30 AUTHORISATION AND CERTIFICATION CONCERNING THE OFFICIAL STATEMENT Concurrently with the delivery of the Series 1991 Bonds, the County will furnish its certificate, executed by the Chairman of the Board of County Commissioners and the County Administrator, to the effect that, to the best of their knowledge, this Official Statement as of its date and as of the date of the delivery of the Series 1991 Bonds, does not and will not contain an untrue statement of a material fact and does not and will not omit to state any material fact which should be included therein for the purpose for which the Official Statement is to be used, or which is necessary to make the statements contained herein, in light of the circumstances under which they were made, not misleading. The County has approved this Official Statement and duly authorized its execution. 31 INDIAN RIVER BOARD OF COUNTY COMMISSIONERS By: Chairman BY: G2440r-- ounty Admihiprator l Appendix A Indian River County, Florida General Information 111 I APPENDIX A INDIAN RIVER COUNTY, FLORIDA GENERAL INFORMATION The following information has been provided by the County and is included only for the purpose of general background information. The Series 1991 Bonds are not general obligations of the County and are payable only from the specific sources described in this Official Statement. See "SECURITY FOR THE 1991 BONDS." Description Indian River County (the "County") was established in 1925 by an Act of the Legislature separating it from St. Lucie County. The County encompasses approximately 497 square miles and is located in the middle of Florida on the eastern coast, approximately 135 miles north of Miami, 190 miles south of Jacksonville, and 135 miles east of St. Petersburg. The County is bounded on the north by Brevard County, on the south by St. Lucie County, on the west by Osceola and Okeechobee Counties and on the east by the Atlantic Ocean. The City of Vero Beach is the seat of County government and the largest city in the County. Other incorporated cities located within the County are Fellsmere, Indian River Shores, Orchid and Sebastian. There are approximately 100 miles of waterfront land in the County, including approximately 23 miles of Atlantic beaches. Government Indian River County has a five -member Board of County Commissioners (the "Commission"). Each member represents one of five districts, elected at large (County -wide) for staggered terms of four years. The Chairman and Vice -Chairman are elected by the Commission. A County Administrator is appointed by the Board and is responsible for administrative and fiscal control of the resources of the County. The following is a list of the Commissioners and the expiration of their respective terms. Name Office, Term Expires Richard N. Bird Chairman November, 1992 Gary C. Wheeler Vice -Chairman November, 1994 Margaret C. Bowman Member November, 1992 Carolyn K. Eggert Member November, 1994 Don C. Scurlock, Jr. Member November, 1992 A-1 The Commission apportions and levies County taxes and controls the expenditure of all County funds, except schools which are controlled by the School Board of Indian River County. The budget year of the County runs from October 1 to the following September 30. Operating revenue is raised from ad valorem taxes, real and personal property taxes, and user fees with supplements from state and federal sources. The Commission operates a County Road System, water and sewer system, solid waste disposal system, and public golf course and other recreational facilities, and has power to establish, build, maintain, repair, protect and preserve these public facilities. Other elected officials serving County -wide are a Property Appraiser, Tax Collector, Supervisor of Elections, Sheriff and Clerk of the Circuit Court who is also the Clerk of the Board of County Commissioners. Population The 1990 Census population of the County was 90,208, an increase of 50.6% over the 1980 Census population of 59,896. Vero Beach, the largest city in the County and the county seat, had a 1990 Census population of 17,350 an increase of 7.3% over its 1980 Census population of 16,176. In 1990, Indian River County ranked 31st out of 67 counties in Florida in terms of total population, representing 0.7% of the total state population at that time. As illustrated in the following table, the population of the County has more than tripled since 1960. It is anticipated that the growth of the County will continue for the foreseeable future. L.e" Population % Annual Increase 1930 6,724 1940 8,957 3.32 1950 11,872 3.25 1960 25,309 11.32 1970 35,992 4.22 1980 59,896 6.64 1985 76,442 2.76 1986 80,023 4.68 1987 83,515 4.36 1988 87,512 4.79 1989 89,000 1.70 1990 90,208 1.35 Source: U.S. Census and University of Florida, Bureau of Economic and Business Research. A-2 11 While the population of the County has been steadily increasing, so has the median age of the resident population. The number of persons age 15-44 is the largest age category. The following table illustrates the percentage of population in the various age groups as of April 1, 1988. Age Group Population _ 0-14 15-44 45-64 65+ 13,944 32,874 19,992 20,702 15.9 37.6 22.9 23.6 Components of Population Change 1980 Census 1990 Census Percent Change Components of Change Components of Change Percentage of Change Percentage of Change Source: Industry 59,896 90,208 50.0% due to Natural Increase 573 due to Net Migration 29,739 due to Natural Increase 1.89% due to Net Migration 98.11% University of Florida, Bureau of Economic and Business Research. The economy of the County is based upon agriculture (citrus and cattle), tourism, light manufacturing, wholesale and retail trade and commercial fishing. In the 1989-1990 crop year Indian River County had 66,116 acres of citrus which produced 17,000,808 boxes of oranges, grapefruit and specialty fruit. The County was 4th among all Florida counties in total citrus production, but 2nd in grapefruit production. Part of the citrus fruit is sold to the fresh fruit market, and there are also 21 major packing houses and one citrus juice processing plant located in the County. Approximately 50,000 acres of improved pasture and rangelands are utilized for dairy farming and beef cattle production, while approximately 35,000 acres remain as forest and woodlands. Sun Ag., Inc. has extensive citrus and agriculture interests in the County, employing approximately 750 persons at the peak of the citrus season. Their agricultural properties, including a citrus packing plant, are located west of Fellsmere in the central part of the County. Other industries include lumber and millwork plants, cabinet and millwork plants, machine shops, welding shops, sheet metal fabricators, mattress ticking, construction, architectural and A-3 tntal iron works, stone and marble products, asphalt plant, training school, welding school, television antennas, Male seafood, metal windows and awnings, printing, air tng systems, ready mix concrete, concrete blocks, precast i9:te products, electronic components, plating and machine io:quipment, screw machine parts, aircraft parts and supplies, ivy built homes, dairy products, newspaper, radio stations Mmperature controls. G► banks, 11 savings and loan associations and 20 securities rage offices provide financial services within the County. rhe Atlantic beaches and the excellent climate in the County :ale the basis for a year-round tourist industry. There are ous hotels and motels in the County, as well as retail and ce establishments geared to serving the tourist trade. :rorty -six miles of riverfront on the Indian River, many of canals and lakefront and approximately 23 miles of itic Ocean beaches as well as two state parks, five county and eight public and six private golf courses provide opportunity for outdoor recreation. The Los Angeles Dodgers baseball club trains at Dodgertown !ro Beach. The 340 -acre complex is also home to the largest tust advanced baseball school in the world. wment Indian River County employment fluctuates seasonally with unemployment occurring from July through October, the slower IS in both the tourist and citrus picking seasons. Employment by sector for the calendar year 1986 was as follows: ;;ategory Percent of Distribution Agriculture 12.1% Manufacturing 6.9 Construction 9.8 Transportation, Communications & Utilities 2.7 Wholesale Trade 1.7 Retail Trade 24.2 finance, Insurance & Real Estate 5.7 Services 30.2 G;overnment 6.7 100.0% co: State of Florida, Department of Labor and Employment Security. A-4 ornamental iron works, stone and marble products, asphalt plant, pilot training school, welding school, television antennas, wholesale seafood, metal windows and awnings, printing, air handling systems, ready mix concrete, concrete blocks, precast concrete products, electronic components, plating and machine shop equipment, screw machine parts, aircraft parts and supplies, factory built homes, dairy products, newspaper, radio stations and temperature controls. 9 banks, 11 savings and loan associations and 20 securities brokerage offices provide financial services within the County. The Atlantic beaches and the excellent climate in the County provide the basis for a year-round tourist industry. There are numerous hotels and motels in the County, as well as retail and service establishments geared to serving the tourist trade. Forty-six miles of riverfront on the Indian River, many miles of canals and lakefront and approximately 23 miles of Atlantic Ocean beaches as well as two state parks, five county parks, and eight public and six private golf courses provide ample opportunity for outdoor recreation. The Los Angeles Dodgers baseball club trains at Dodgertown in Vero Beach. The 340 -acre complex is also home to the largest and most advanced baseball school in the world. Employment Indian River County employment fluctuates seasonally with most unemployment occurring from July through October, the slower months in both the tourist and citrus picking seasons Employment by sector for the calendar year 1986 was as follows: Category Percent of Distribution Agriculture 12.1% Manufacturing 6.9 Construction 9.8 Transportation, Communications & Utilities 2.7 Wholesale Trade 1.7 Retail Trade 24.2 Finance, Insurance & Real Estate 5.7 Services 30.2 Government 6.7 100.0% Source: State of Florida, Department of Labor and Employment Security. A-4 1 Major employers in Indian 'current level of employment as ;Establishment River county and their approximate of July, 1990 were as follows: Indian River County School Dist Indian River Memorial Hospital Indian River County Publix Corporation 'Sun Ag., Inc. City of Vero Beach Grave Brothers, Inc. Humana Hospital Sebastian Gracewood Fruit Co. Hale Groves Dodgertown Complex Johns Island WalMart Source: Indian River County. Product or Service Employment . School system Medical services County government Retail grocery Citrus & agriculture City government Citrus Acute care facility Citrus Citrus Convention Center, Baseball Residential Resort Retail Merchandise A-5 1,893 1,200 1,156 750 550 541 450 389 370 360 350 325 310 The following table sets forth County per capita income and compares the annual average unemployment rate in the County to the State of Florida and national annual averages. Annual Annual Average Average School Unemploy- Unemploy- En- ment ment Fiscal Per Capita roll- Rate- Rate - Year Population Income ment County State Using (1) (2) (3) (4) (4) 1981 63,100 12,807 9,206 8.9 6.8 1982 66,915 12,582 9,426 12.4 8.2 1983 69,414 13,230 9,434 14.0 8.6 1984 74,162 14,174 9,466 9.0 6.3 1985 76,442 15,690 9,752 9.0 6.2 1986 80,023 16,250 10,214 9.2 5.8 1987 83,515 17,440 10,442 8.7 5.4 1988 87,512 17,997 10,802 7.2 5.0 1989 89,000 n/a 10,930 6.5 5.5 1990 90,208 n/a 11,516 10.0 5.8 Sources: (1) U.S. Census and Bureau of Economic and Research. University of Florida. (2) U.S. Department of Commerce, Bureau of Analysis, Unpublished Data. Indian River County School Board, Peak Enrollment. Florida Department of Labor and Employment Security Bureau of Research and Information. (3) (4) Annual Average Unemploy Rate - National (4) 7.6 9.7 9.5 7.2 7.3 7.1 6.4 5.7 5.3 5.4 Business Economic activity and bank O •1.4 b1 0 41 N 0 0 0 0 4i ccl0 W •,.4 forth historical •p N ✓ 41 i4 ••1 .. a4) 44C 011 0 O CO VC .r I e' 40 •r! g N�0A •.l 4)) Is 11:1•F-1 4) I 14 0 •0 4)ORv CO au ro O •,4 41 0 4141 0 U1O 0 u Year Ended eh et v v 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 gra 01. I N r4 C1 0 C1 eP eP 1 CO IO 0% 41 40 41 It el el Ch 41 eP Ch 01 41 V. CO eP 01rIC110el041-C1eO C4 40 CO 41 C4 U1 el 03 CO C4C401v 41 43r.V.00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 . . . . . . . . . U1rsCOr•l1010e-101a r k0 es 111 01 N e•1 el CI O IL1 el el V,IP0le0V.U1MN 030ee1C1NVC0'DC1v 1 -le -4_ 1.4 eel 1 -l1 --1N 1-1 e'1 01 O 0 0 0 0 0 0 0 0 0 Ja 0 0 0 0 0 0 0 0 0 0 0) 0000000000 —(1 . . . . . . O mOU1CO V Nelehn e+1 ch C3 er1rlOU1NOC1e.NC0 C1 CII CT NO C1 el 41010 PN 40 el 44 Q f . . . . . ► . . 1 0 •r4 -r4 r. 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Nb N b N k0 C1 N 1-4 N O O eh 00 v • •1-1 •1-1 C4C1C1rl41C1v00NO3 1-1 0 C4 1-4 01 C4 C1 01 O 41 40 V. el (15 0 N 0 CO 01U11000r4 C4 V. eP 41 10 S rlrlrle•iri CD04 •.l 1--1 fa ! 4 0 •A � 14 b -•.4 0 L4 01 14 0000000000 4) 14 0 .1< 0 0000000000 b 011-.1 r~ r-1 0000000000 44 y gta•la 43ow C) r4 VC010Rt. e4Ulve, 0W eh el 144 k.0010001.vr1ON00 4)C) 0 Al 0 4, 01 d'C1000NN0OP 'CI )4 'CI 1•1 . . . . .1-4 Y.l Q) 0 •.l 0) 0 ✓ I.N4OVD4OvC►v1. 14 012A 4A t+ 1-4 1-4 C1 00 N O C1 1-4 01 1-4 0 41 E0 0 q 10 .4 .4 r4 C4 ri N 1-4 C4 1-.1 010yb1 4) 1-4 0) i ► w�w a RI 0) y 0) •1 •--1 •. e/1 •. 4J1 .. 0.0 0w 0 11-4 0 CD 1-4 N 1-1 v 41 1D V. 00 C1 N 1.1 0 1.1 0 1.1 O CO 00 CO CO CO 00 00 00 0) 0 4) O O y1 0 ON ON ON ON4 r44 el 1-4 rel e44 ell 1-4 rel rel tO Ems+ N 4 VOi AC U1 rr ••••. .. — r•/ N eh ref Transportation Rail transportation in the County is handled by Florida East Coast Railway, while numerous freight truck lines are available to serve. the County. Highways providing surface travel are Interstate 95, U.S. 1 and State Road A1A for north -south travel and State Road 60 for travel to the west, while the Florida Turnpike crosses south and northwest through the southwest corner of the County. The area is served by Greyhound Bus Lines for passenger and package service. Vero Beach Municipal Airport provides scheduled commuter airline service and is capable of handling most commercial aircraft, while one other airport in the County serves charter and private aircraft. Scheduled airline service is available to County residents through the Melbourne Regional Airport (about a fifty minute drive), Orlando International Airport and Palm Beach International Airport (each about an hour and a half drive). Health Care The Indian River Hospital District, encompassing all but six square miles of the County, has a 347 -bed facility in Vero Beach. The Humana Hospital Sebastian, a private for-profit acute care facility, is located in the northern part of the County on U.S. 1. There are presently over 200 physicians serving the hospitals and area residents. The Sunshine Rehabilitation Center offers physical and speech therapy to handicapped children and adults. Education The education system is administered on a County -wide basis by the School Board of Indian River County. The five -member Board, elected for staggered four-year terms each, appoints a Superintendent of Schools. The County has twelve elementary schools, one middle -junior high, two middle schools, one junior high and one senior high. There is one Special Education School for all grades. Enrollment for the 1989-90 school year was 11,516 students. There are 945 administrative and teaching personnel and 419 non -instructional personnel. In addition to the public school system, there are several parochial and private schools. Indian River Community College, with its main campus located in Ft. Pierce, about 15 miles from Vero Beach, has branch campuses in Vero Beach and in Okeechobee and Martin Counties. The state -supported community college offers a general college program for the first two years and a wide variety of technical and vocational instruction. The Mueller Center in Vero Beach has a 40 -acre campus, ten classrooms and office facilities. Communications and Electric Utilities A-8 One daily newspaper is published in the County. There are five local radio stations. Telephone service is supplied by Southern Bell. Vero Beach Electric System and Florida Power & Light Company supply electricity. LOCAL AND STATE TAXES Florida has no individual state income tax. Inheritance tax is confined to the amount allowed as a credit to the State from the tax levied by the United States government. The 6% regular sales tax. plus the 1% local option sales tax applies to all items except groceries and medicines. Under the Florida Homestead Exemption law, no municipal or county taxes are levied against the first $25,000 of valuation of A home occupied by its owners except for special assessments. It is a state law that all tax appraisals must be at 100% of value. The Florida corporate tax is 5.5% with an exemption and no surcharge. The Board of County Commissioners of Indian River County is limited by the Constitution of Florida to an ad valorem tax levy of 10.0 mills per $1,000 of assessed value for operating expenditures, with an additional 10.0 mills within special created municipal service taxing units. The following tables provide statistical information on the County's tax collection history, assessed property values, debt structure and principal taxpayers: A-9 INDIAN RIVER COUNTY, FLORIDA PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS PER $1000 OF ASSESSED VALUES Last Ten Fiscal Years Mal County -Wide Total Independent :,• School County- Taxing Districts ad County Board Other(1) Wide Cities(2) Other(1 1 4.50032 7.04328 .32820 11.87180 3.86317 2.74737 2 4.29358 6.61600 .88398 11.79356 3.87881 2.34996 3 3.46325 6.24700 .90480 10.61505 3.10727 2.11452 4 4.07264 6.67120 1.95895 12.70279 3.42355 2.34516 9 4.46514 6.71380 1.94202 13.12096 3.49458 3.34028 6 4.72025 6.92780 1.77208 13.42013 3.95872 2.56083 1 6.15344 6.92340 1.88558 14.96242 5.36896 2.56025 0 7.21730 7.35880 2.17036 16.74646 5.5524 3.11748 9 7.03750 7.59160 1.68019 16.30929 5.68680 3.08220 0 7.14860 8.07040 2.00877 17.22777 6.08563 3.00720 (1) Composite tax rates. (2) Average tax rate. Source: Indian River County Tax Collection A-10 IIS'^`_- '1 INDIAN RIVER COUNTY, FLORIDA PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS PER $1000 OF ASSESSED VALUES Last Ten Fiscal Years Fiscal Year Ended County County -Wide Total Independent School County- Taxing Districts Board Other(1) Wide Cities(2) Other(1 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 4.50032 4.29358 3.46325 4.07264 4.46514 4.72025 6.15344 7.21730 7.03750 7.14860 7.04328 .32820 11.87180 3.86317 2.74737 6.61600 .88398 11.79356 3.87881 2.34996 6.24700 .90480 10.61505 3.10727 2.11452 6.67120 1.95895 12.70279 3.42355 2.34516 6.71380 1.94202 13.12096 3.49458 3.34028 6.92780 1.77208 13.42013 3.95872 2.56083 6.92340 1.88558 14.96242 5.36896 2.56025 7.35880 2.17036 16.74646 5.5524 3.11748 7.59160 1.68019 16.30929 5.68680 3.08220 8.07040 2.00877 17.22777 6.08563 3.00720 (1) Composite tax rates. (2) Average tax rate. Source: Indian River County Tax Collection A-10 INDIAN RIVER COUNTY, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Fiscal Total Current Percent Delinquent Total Percent Year Tax Tax Coll- of Levy Tax Tax of Total Ended Levy ections Collected Coll- Coll- Collection ections ections To Levy 1981 8,351,587 8,190,343 98.07 8,242 8,198,585 98.17 1982 9,129,460 8,704,138 95.34 184,000 8,888,138 97.36 1983 9,276,416 8,956,111 96.55 10,511 8,966,622 96.66 1984 12,926,975 12,412,543 96.02 9,258 12,421,801 96,09 1985 15,186,814 14,423,407 94.97 26,216 14,449,623 95,15 1986 17,709,388 16,970,965 95.83 42,828 17,013,793 96.07 1987 22,292,164 21,146,969 94.86 27,719 21,174,688 94.99 1988 27,551,218 27,041,829 98.15 277,384 27,319,213 99.16 1989 28,110,296 26,916,117 95.75 93,088 27,009,205 96.08 1990 32,890,687 31,471,607 95.69 77,376 31,548,983 95.92 All taxes are due and payable on November 1 of each year or as soon thereafter as the assessment roll is certified and delivered to the Tax Collector. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January and 1% in the month of February. The taxes paid in March are without discount. Delinquent taxes on real property bear interest of 18% per year. On or prior to June 1 following the tax year, certificates are sold for all delinquent taxes on real property. After sale, tax certificates bear interest of 18% per year or at any lower rate bid by the buyer. Application for a tax deed on any unredeemed tax certificates may be made by the certificate holder after a period of two years. Unsold certificates are held by the County. Delinquent taxes on personal property bear interest of 18% per year until the tax is satisfied either by seizure and sale of the property or by the five-year statute of limitations. The County does not accrue its portion of the county -held certificates due to the immaterial amount. A-11 lop INDIAN RIVER COUNTY, FLORIDA ASSESSED VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Fiscal Year Ended Real Property Personal Property Total Assessed Value Assessed Value Assessed Value 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 2,028,590,110 2,442,835,490 2,984,489,960 3,311,355,000 3,534,024,949 3,781,716,839 3,974,458,157 4,387,121,880 4,570,700,250 4,954,816,716 174,022,920 200,607,110 170,588,980 181,269,850 187,757,610 229,364,177 259,733,289 280,414,239 303,141,158 321,397,153 2,202,613,030 2,643,442,600 3,155,078,940 3,492,624,850 3,721,782,559 4,011,081,016 4,234,191,446 4,667,536,119 4,873,841,408 5,276,213,869 Source: Indian River County Property Appraiser A-12 N N V V mm o o co A A O 0 F1 G a• m r•• a � A 1-•• N < 0 (D N F1 a o a C =CO 00 '<K va O • C M M 'G G K N am ma K a A 0 O 0 0 (D 01 m a K QPiaoI3 Jo Ji4tsaaATun F+ F+ F+ F+ F+ F+ F+ F+ F+ F+ Ch K M mo1010101D10101D1D10 1:54 01 a• CO 10ODCOCOCOODCO03OD 01DWJC1toi►WNF+ (D Fi A M to F+ 10 10 CO CD OD J J C1 C1 01 hi 4h 0+ JWOO14u1DC1 W ).0° . 0 0 . . . . . 1.4 wb OD W co cn O A F+ 4u 10 FA ..°40C N W F+ F+ N .6 C1 FA F+ O O F+ NF+NuI 4.)Nhi4s00 in 1 4u4Uolu4U4u4.4 W WhiN . . . . . . . . . . 1000C►NC.444.F+C1N ,b toJC1 4.4F+N10co4.CD 0) DPW J44hFAF+Nu1 WN CM. . - . . .10 0, .0. . ....OM CO OD coNO.4C104SC1 NNN 1A4U4.4 ua03 CDN.4AF+ '"'"OM C1 F+ C1 F+ F+ N ^ OD N W (D (D . . . . . . . . . . a .441%,F+411.Oco0D10C10 F+ O F+ 4* F+ co co O W 0100 MD ChC1100000 to 4U W W N F+ F+ F+ F+ toF+JWA0CIJW COCO C1 0 .4 4u MD UD F+ N C1c114POC1.410CD.4.4 104.4 O10AAAONCO ▪ 01 01 01 01 . F+ CO J N N is is ,p co O 00.4 .4000000 1-'00 0 C 00000 CDOODrwNoltn.4.4 10 JPAFAF+N01001N W Oco10W 4UNC11001 C►.4u1F+104PODAto W 01 0+ F+ N w W W F+ 10 10 co00o.4wl0co N F+WF+F+ 0110 10 w F+ 10 .4.4.4 F+ ▪ . . . . . . . . co 44 JJ1003 W AJcD AW CD01NA1•+A•O)F+ OD ODOJAW ulAOW 0101-+.4 10.4 co .4CD0 N coOOcotoW ou10 O woNrCDNwoO N N N N J N A co 10 4u A W 441. CD co O O W N O 10 C► 01 O .4NC►0010 W JNU1 .44hwC4.414.4woul . . . . . . . . . . VD 44 MD co .4 N OD 0 0 4.4.4C CD 4u W NM00 ▪ 0uiF+.4FAC1coo0 .Pu1 NN W W A 0110 0FAFA1010 F+ O 01 A F+ N 0% co 10 0 F+ 1•+ N CO pJ W . . . . . . . . . � O 1 10JW COsth.40% ODOO.4COOOC1u10 to 0 1 F+ CO F+ co 1D F+ u1 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0+F+000O1+F•00 O NO W coopN011+N co v1 F+ N I► to J r 1 NAONF+ N • • O• • • • • . • t4A 1 JJJ100O44 11.4 N D► F+ co w 4444 a • o fnF( m r•0 < CC 001-+wwrt � N (AD a WZ < • m'iav (011 M '< (0 0,0000* C'1OOrP NN• (D (D CO p m0m O(0 CL x(0'00 < 00 am M C 1101E A n q0 1 1 0 m t�f Pg CHH Hz < 00 H ZOO yyrr t!1 zg C3 DO GI 0 m t4 to H01 0 A rtcr Kdg- 03 goM8 i 1.4 H OW ✓ W Mq PO W INDIAN RIVER COUNTY, FLORIDA PRINCIPAL TAXPAYERS SEPTEMBER 30, 1990 Taxpayer 1988 Assessed Type of Business Value (1) Percent of Total Assessed Value Sun Ag., Inc. Southern Bell John's Island, Inc. General Development Corporation Adult Communities Total Services Florida Power and Light Graves Brothers Pat Corrigan RO-Ed Agriculture $ 68,730,354 Telephone utility 65,987,570 Land development Land development Health care Electric utility Agriculture Agriculture Agriculture 44,305,320 34,256,920 32,028,010 31,090,940 20,656,000 16,607,770 14.946.120 5328. 6Q,9, 004 (1) Total assessed value $5,276,213,869 Source: Indian River County Property Appraiser A-14 I 1.30% 1.25 . 84 . 65 .61 .59 . 39 .31 .29 6.23j Appendix S General Purpose Financial Statements and Independent Auditors' Report for the Fiscal Year Ended September 30, 1990 &LybrCoopeand cenitea public accountants Report of Independent Accountants The Honorable County Commissioners and Constitutional Officers Indian River County, Florida APPENDIX B We have audited the accompanying general purpose financial statements of Indian River County, Florida as of September 30, 1990, and for the year then ended, on pages 2 through 52. These general purpose financial statements are the respon- sibility of the County's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial state- ments are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting princi- ples used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of Indian River County, Florida at September 30, 1990, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles. 1..; r (",h2( 1/4 0-41, L� Orlando, Florida January 31, 1991 1 ASU?p INDIAN RIVER COUNTY, FLORIDA gaalaILISNELinn ALL MUND TYPES AMD ACCOUNT GROUPS September 30. 1990 GOVERNMENTAL FUND TYPES SPECIAL 088? CAPITAL GENERAL REVENUE SERVICE PROJECTS Equity in pooled Bash and i nes 513,158.449 515,369,841 $ 4.155.896 513.567,936 Accounts receivable - net 153.678 356,176 - 60.000 Special assessments receivable - deferred - 212.076 8.743,015 - Due from other funds 3.193,495 148.578 21,986 - Due from other governments 1,244,978 4.896 - 297,963 Intsrsst receivable 302,900 121,862 34,143 48.467 Inventories 48.128 - - Prepaid insurance - Restricted assets: Cash and investments: Sinking Funds - Renewal and replacement and capital projects - - Customer deposits Capital construction Impact fees receivable Special assessments receivable Advance to other funds Property, plant and equlpsent Accumulated depreciation Unamortized bond costs - Intangible assets Amount available in debt service funds - - Amount to be provided for retirement of general long-term debt Total Assets ;18.101.628 ;16.213.429 ;12.955.040 ;13.974.368 LIABILITIES. FUND EQUITY AND OTHER CREDITS Liabilities: Accounts payable $ 989,003 $ 417,192 5 2,240 $ 1,752,549 Retsina.), payable - 52,969 1,182,540 Claims payable - Notes payable - current portion - Capital leases - current portion - Due to other governments 1,250,579 20.198 - Deferred compensation - Other deposits held in escrow 105,669 - D eferred revenues 35.000 212,076 8,815,015 - Due to other funds 84.046 1,508.733 1,500,000 Payable from restricted assets: Accounts payable Retainage payable Accrued interest payable Bonds payable - current portion Closure costs payable Customer deposits Prepaid impact fees Advance from other funds 607.500 Accrued compensated absences Capital 1 S end anticipation notes payable B onds payable - net of discounts Total liabilities 2,764,297 2,211,168 9,424,755 4,435,089 Fund Equity and Other Credits: Investment in general fixed assets Contributions Retained earnings: R ed Unto served Fund balances: Reserved 40,000 3.530,285 9,539,279 Unreserved 15,597,331 14,002,261 - Total fund equity and other credits 15,637,331 14,002,261 3,530,205 9,539,279 Total Liabilities, Fund Equity and Other Cridlts ;18.101.6211 ;16.213.421 ;12.953.04Q ;13.974.16` 2 R PROPRIETARY FUND TYFRS FIDUCIARY FUND TYPU ACCOUNT GROUPS GORRAL TOTALS INTERNAL TRUST AND GENERAL LANG -TRAM (NENONANDUN EIT PRIER SERVICE AGENCY FIXED ASSET4 DEBT ONLY) $ 6.000.605 $ 1,804.457 $ 3,775,441 $ $ - $ 57.832,630 867.742 171 3.290 1,441.057 - - - 8,955,091 54.399 - - 3,418.458 28.716 20,102 - 1,596,655 139,237 - 7,987 654,596 291.582 164.914 11,020 515.644 - 36,744 - 36,744 3.732,283 3,732,283 6,427,175 6,427,175 397.305 397,305 3,269,563 - 3,269,563 696,160 - 696.160 744.152 744,152 607,500 - - 607,500 75.113.598 277,224 62.901,845 138,292,667 (9.657,622) (172,788) - (10,030,610) 476.093 - 476.093 240,894 - - 240,894 - 3,530,265 3,530.285 23.962.037 23,962.037 669.229.185 S 2.170.824 3 3.797.738 362.901.845 327.492.322 3246.796.379 3 459,690 S 47,378 $ 58,281 S 1,113,947 237.515 - 30.820 - 1,294,860 532,151 280,445 1,643,742 7,938 - 103,833 221,846 5 $ 3.726.333 1,235,509 1,113,947 237,515 30.820 2,565,637 532,151 2,029,856 9,070.029 3,418,458 702,162 702,162 75,233 75,233 516,027 S16,027 647,000 647.000 480.178 480,178 346.565 396.565 260,000 260,000 607,500 117,801 19,066 1,066,328 1,203,195 468,293 668,293 3,900,000 - 30900.000 29.172,330 25,957,701 55,130.031 37,283,704 1,284,224 3,750,880 27,492,322 88.346,439 38,5470769 636,643 1,324.118 - 12,073,594 209,957 46.658 62,901,845 62,901,845 39.184.412 1,324.118 12,283,551 13,109,564 29.646.450 51.945.481 846,600 46.858 62,901,845 158.449,940 Lf.228..183 ; 2.130.82j 3 3.797.734 $62.941.84% )27.492.322, 3246.796.379 The accompanying notal •2,a an Integral yart u( the (snancial statements. 3 INDIAN RIVER COUNTY, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND Year Ended September 30, 1990 GOVERNMENTAL GENERAL SPECIAL REVENUE cnues: Cies $ 28,043,199 $ 7,686,647 iicenses and permits 209,899 13,775 ntergovernmental 4,831,624 2,977,.570 barges for services 3,085,754 2,280,810 Liles and forfeitures 422,209 204,423 iscellaneous 3,200,015 1,895,700 Total revenues 39,792,700 15,058,925 cnditures: urrent: General Government 10,258,989 524,121 Public Safety 17,183,086 5,590,449 Physical Environment 292,845 Transportation 97,482 7,919,765 Economic Environment 123,112 - Human Services 1,545,422 1,157,384 Culture/Recreation 2,959,179 503,820 cbt Service: ;Principal 130,399 59,163 Interest 38,780 24,327 aiIpital Projects - - Total expenditures 32,629,294 15,779,029 ass of Revenues Over (Under) Expenditures 7,163,406 (720,104) oar Financing Sources (Uses): pirating transfers in 206,715 5,613,140 pirating transfers out (5,198,573) (7,931,320) nese purchase proceeds 16,604 - cund proceeds Total other financing sources (uses) (4,975,254) (2,318,180) cies of Revenues and Other Sources Over Lilinder) Expenditures and Other Uses M Balances at Beginning of Year iIdual Fund Equity Transfer In (Out) M Balances at End of Year 11 2,188,152 13,440,610 8,569 (3,038,284) 17,049,114 (8,569) S 15.637.331 rS 14.002.261 4 INDIAN RIVER COUNTY, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND Year Ended September 30, 1990 GOVERNMENTAL GENERAL SPECIAL REVENUE Revenues: Taxes $ 28,043,199 $ 7,686,647 Licenses and permits 209,899 13,775 Intergovernmental 4,831,624 2,977,.570 Charges for services 3,085,754 2,280,810 Fines and forfeitures 422,209 204,423 Miscellaneous 3,200,015 1,895,700 Total revenues 39,792,700 15,058,925 Expenditures: Current: General Government 10,258,989 524,121 Public Safety 17,183,086 5,590,449 Physical Environment 292,845 - Transportation 97,482 7,919,765 Economic Environment 123,112 - Human Services 1,545,422 1,157,384 Culture/Recreation 2,959,179 503,820 Debt Service: Principal 130,399 59,163 Interest 38,780 24,327 Capital Projects - - Total expenditures 32,629,294 15,77.9,029 Excess of Revenues Over (Under) Expenditures 7,163,406 (720,104) Other Financing Sources (Uses): Operating transfers in 206,715 5,613,140 Operating transfers out (5,198,573) (7,931,320) Lease purchase proceeds 16,604 - Bond proceeds - - Total other financing sources (uses) (4,975,254) (2,318,180) Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balances at Beginning of Year Residual Fund Equity Transfer In (Out) Fund Balances at End of Year 4 2,188,152 (3,038,284) 13,440,610 17,049,114 8,569 (8,569) $ 15.637,331 S 14.002.261 FUND TYPES FIDUCIARY FUND TYPE EXPENDABLE TRUST TOTALS DEBT CAPITAL (INMATE (MEMORANDUM SERVICE PROJECTS WELFARE) ONLY $ 1,557,403 $ 5,049,596 $ $ 42,336,845 - - - 223,674 1,276,833 212,700 - 9,298,727 - - 5,366,564 626,632 1,370,257 1,476,160 103,300 8,045,432 4,204,493 6,738,456 103,300 65,897,874 10,783,110 91,516 22,865,051 292,845 8,017,247 123,112 2,702,806 3,462,999 1,847,487 - 2,037,049 1,781,498 - 1,844,605 - 16,774,974 16,774,974 3,628,985 16,774,974 91,516 68,903,798 575,508 (10,036,518) 11,784 (3,005,924) 430,270 6,827,434 - 13,077,559 (11,306) (430,270) (13,571,469) 16,604 5,877,490 - 5,877,490 418,964 12,274,654 - 5,400,184 994,472 2,238,136 11,784 2,394,260 2,535,813 7,301,143 35,074 40,361,754 S 31530,5 S 9.539.279 S 46.858 S 42,756,014 The accompanying notes are an integral part of the financial statements. 5 INDIAN RIVER COUNTY, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES Year Ended September 30, 1990 Revenues: Taxes $ 26,915,073 $ 28,043,199 $ 1,128,126 Licenses and permits 173,700 209,899 36,199 Intergovernmental 4,721,81.9 4,831,624 109,805 Charges for services 3,441,512 3,085,754 (355,758) Fines and forfeitures 319,000 422,209 103,209 Miscellaneous 2,340,130 3,200,015 859,885 Total revenues 37l911t234 39,792,700 1,881,466 GENERAL VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) Expenditures: Current: General Government 10,953,212 10,258,989 694,223 Public Safety 17,299,743 17,183,086 116,657 Physical Environment 372,762 292,845 79,917 Transportation 191,780 97,482 94,298 Economic Environment 137,254 123,112 14,142 Human Services 1,707,376 1,545,422 161,954 Culture/Recreation 3,647,764 2,959,179 688,585 Debt Service: Principal 139,410 130,399 9,011 Interest 44,743 38,780 5,963 Capital Projects - - Total expenditures 34,494,044 32,629,294 _ 1,864,750 Excess of Revenues Over (Under) Expenditures 3,417,190 7,163,406 3,746,216 Other Financing Sources (Uses): Operating transfers in 70,639 206,715 136,076 Operating transfers out (5,700,367) (5,198,573) 501,794 Lease purchase proceeds 16,604 16,604 Bond proceeds - - _ Total other financial sources (uses) (5,613,124) (4,975,254) 637,870 Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses S (2.195.934) 2,188,152 S 4.384.086 I Fund Balances at Beginning of Year 13,440,610 Residual Fund Equity Transfer In (Out) 8,569 ' Fund Balances at End of Year ; 15,637.331 6 SPECIAL REVENUE DEBT SERVICE BUDGET $ 7,360,912 2,516,401 1,738,374 117,310 1,073,412 12,806,409 VARIANCE FAVORABLE ACTUAL (UNFAVORABLE $ 7,686,647 $ 325,735 13,775 13,775 2,977,570 461,169 2,280,810 542,436 204,423 87,113 1,895,700 822,288 15,058,925 2,252,516 793,727 524,121 6,083,262 5,590,449 12,946,859 7,919,765 1,144,984 1,157,384 566,485 503,820 146,000 36,954 21,718,271 (8,911,862) 5,608,360 (8,010,177) (2,401,817) ;(11.313.679) 59,163 24,327 15,779,029 (720,104) 5,613,140 (7,931,320) 269,606 492,813 5,027,094 (12,400) 62,665 86,837 12,627 BUDGET ACTUAL VARIANCE FAVORABLE UNFAVORABLE $ 1,564,826 $ 1,557,403 $ (7,423) 1,323,944 1,276,833 (47,111) 915,711 1,370,257 454,546 3,804,481 4,204,493 400,012 1,954,063 1,866,749 1,847,487 1,781,498 5,939,242 3,820,812 3,628,985 8,191,758 (16,331) 575,508 4,780 78,857 (2,318,180) 83,637 (3,038,284) 17,049,114 (8,569) 14.002.261 430,270 430,270 (28,000) (11,306) 402,270 S 8.275.395 S 385.939 Continued 418,964 994,472 2,535,813 S 3.530.285 106,576 85,251 191,827 591,839 16,694 16,694 608.533 The accompanying notes are an integral part of the financial statements. 7 INDIAN RIVER COUNTY, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED ALL GOVERNMENTAL FUND TYPES Year Ended September 30, 1990 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Miscellaneous Total revenues Expenditures: Current: General Government Public Safety Physical Environment Transportation Economic Environment Human Services Culture/Recreation Debt Service: Principal Interest Capital Projects Total expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Lease purchase proceeds Bond proceeds Total other financial sources (uses) Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balances at Beginning of Year Residual Fund Equity Transfer In (Out) Fund Balances at End of Year 8 CAPITAL PROJECTS BUDGET $ 4,846,195 706,550 5,552,745 22,879,874 22,879,874 (17,327,129) 6,827,434 (430,270) 5,877,490 12,274,654 S (5.052,475) VARIANCE FAVORABLE ACTUAL (UNFAVORABLE) $ 5,049,596 $ 203,401 212,700 212,700 1,476,160 769,610 6 738,456 1,185,711 16,774,974 16,774,974 6,104,900 6,104,900 (10,036,518) 7,290,611 6,827,434 (430,270) 5,877,490 12,274,654 2,238,136 7,301,143 S 9.539.279 S 7.290.611 14 TOTALS (MEMORANDUM ONLY) BUDGET ACTUAL VARIANCE FAVORABLE (UNFAVORABLE) 4.0,687,006 $ 42,336,845 $ 1,649,839 173,700 223,674 49,974 8,562,164 9,298,727 736,563 5,179,886 5,366,564 186,678 436,310 626,632 190,322 .,;5,035,803 7,942,132 2,906,329 1,0,074,869 65,794,574 5,719,705 141,746,939 10,783,110 963,829 23,383,005 22,773,535 609,470 372,762 292,845 79,917 143,138,639 8,017,247 5,121,392 137,254 123,112 14,142 2,852,360 2,702,806 149,554 4,214,249 3,462,999 751,250 2,239,473 2,037,049 202,424 1,948,446 1,844,605 103,841 ;12,879,874 16,774,974 6,104,900 82,913,001 68,812,282 14,100,719 _12,838,132,) (3,017,708) 19,820,424 3,2,936,703 13,077,559 140,856 14,168,814) (13,571,469) 597,345 16,604 16,604 5,877,490 5,877,490 ,4,661,983 5,400,184 738,201 130.176,149 ) 11 2,382,476 S 20.558,625 40,326,680 42.709.156 he accompanying notes are an integral part of the financial statements. 9 TOTALS (MEMORANDUM ONLY) VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) $ 40,687,006 $ 42,336,845 $ 1,649,839 173,700 223,674 49,974 8,562,164 9,298,727 736,563 5,179,886 5,366,564 186,678 436,310 626,632 190,322 5,035,803 7,942,132 2,906,329 60L074,869 65,794,574 5,719,705 11,746,939 10,783,110 23,383,005 22,773,535 372,762 292,845 13,138,639 8,017,247 137,254 123,112 2,852,360 2,702,806 4,214,249 3,462,999 2,239,473 2,037,049 1,948,446 1,844,605 22,879,874 16,774,974 82,913,001 68,812,282 (22,838,132) (3,017,708) 12,936,703 13,077,559 (14,168,814) (13,571,469) 16,604 16,604 5,877,490 5,877,490 4,661,983 5,400,184 S(18.176.149) 2,382,476 40,326,680 42,709.156 963,829 609,470 79,917 5,121,392 14,142 149,554 751,250 202,424 103,841 6,104,900 14,100,719 19,820.424 140,856 597,345 738,201 S 20.558.625 The accompanying notes are an integral part of the financial statements. 9 INDIAN RIVER COUNTY, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES Year Ended September 30, 1990 TOTALS INTERNAL (MEMORANDUM ENTERPRISE SERVICE ONLY) Operating Revenues: Charges for services: Landfill $ 5,221,782 $ - $ 5,221,782 Golf course 1,499,366 - 1,499,366 County building 696,949 - 696,949 Water and sewer 5,271,145 - 5,271,145 Housing Authority 360,424 - 360,424 Vehicle maintenance - 988,717 988,717 Self insurance - 1,516,674 1,516,674 Total operating revenues 13,049,666 2,505,391 _15,555,057 Operating Expenses: Personal services 4,465,342 431,717 4,897,059 Materials, supplies, services and other operating 4,378,588 2,033,404 6,411,992 Depreciation and amortization 3,509,765 32,007 3,541,772 Total operating expenses 12,353,695 2,497,128 14,850,823 Operating Income 695,971 Nonoperating Revenues (Expenses): Interest income Operating grants Gain on disposal of equipment Interest expense Amortization expense Loss on disposal of equipment Total nonoperating revenues (expenses) 1,580,007 16,281 12,678 (1,556,861) (107,437) (3,553) (58,885) 8,263 704,234 51,291 51.291 1,631,298 16,281 12,678 (1,556,861) (107,437) (3,553) (7,594) Income Before Operating Transfers 637,086 59,554 696,640 Operating Transfers In 70,702 423,208 493,910 Net Income 707,788 482,762 1,190,550 Add: Depreciation on Fixed Assets Acquired with Contributed Capital 806,300 - 806,300 Increase in Retained Earnings 1,514,088 482,762 1,996,850 Retained Earnings (Deficit) at Beginning of Year 11,883,624 (272,805) 11,610,819 Retained Earnings at End of Year S13.397.712 1 209.957 X513.607.669 The accompanying notes are an integral part of the financial statements. 10 INDIAN RIVER COUNTY, FLORIDA COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY FUND TYPES Year Ended September 30, 1990 TOTALS INTERNAL (MEMORANDUM ENTERPRISE SERVICE ONLY) Sources of Working Capital: From operations: Net income $ 707,788 $ 482,762 $ 1,190,550 Items not affecting working capital: Amortization 122,438 - 122,438 Depreciation 3,494,765 32,007 3,526.772 Total from operations 4,324,991 514,769 4,839,760 Decrease in restricted assets 1,812,581 - 1,812,581 Disposal of fixed assets- net 60,974 526 61,500 Decrease in other assets 48,381 - 48,381 Increase in current liabilities payable from restricted assets 98,326 - 98,326 Increase in other liabilities 31,402 5,974 37,376 Increase in revenue bonds payable 9,650,000 - 9,650,000 Increase in contributions 7,438,551 23,623 7.462.174 Total sources of working capital 23,465,206 544,892 24,010,098 Uses of Working Capital: Increase in restricted assets Acquisition of fixed assets Increase in other assets Decrease in current liabilities payable from restricted assets Decrease in capital leases Decrease in bond anticipation notes Decrease in revenue bonds payable Total uses of working capital 3,353,615 8,421,907 33,108 1,003,546 30,819 9,200,000 700,000 22,742,995 3,353,615 62,414 8,484,321 33,108 1,003,546 30,819 9,200,000 700,000 62,414 22,805,409 Net Increase in Working Capital ; 722.211 ; 482.478 S 1.204.689 Continued The accompanying notes are an integral part of the financial statements. 11 INDIAN RIVER COUNTY, FLORIDA COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - CONTINUED ALL PROPRIETARY FUND TYPES Year Ended September 30, 1990 TOTALS INTERNAL (MEMORANDUM ENTERPRISE SERVICE ONLY) Elements of Net Increase in Working Capital: Equity in pooled cash and investments $ 803,428 $ 656,331 $ 1,459,759 Accounts receivable - net (41,165) (14,512) (55,677) Due from other funds (72,401) (10,932) (83,333) Due from other governments (323,403) 20,027 (303,376) Interest receivable (14,897) - (14,897) Inventories 81,939 (545) 81,394 Prepaid insurance - (16,437) (16,437) Accounts payable (86,631) 4,286 (82,345) Retainage payable 25,500 - 25,500 1 Claims payable - (698,697) (698,697) Notes payable 69,039 - 69,039 1 Capital leases - current portion 17,863 17,863 Due to other governments 87,355 - 87,355 Other deposits held in escrow 24,107 - 24,107 Contracts payable 156,114 - 156,114 Deferred revenues (4,637) (4,637) Due to other funds 542,957 542,957 l Net Increase in Working Capital S 722.211 S 482.478 S 1.204.689 The accompanying notes are an integral part of the financial statements. 12 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS Year Ended September 30, 1990 1. Summary of Significant Accounting Policies: Indian River County, Florida (the "County") is a political subdivision of the State of Florida. It is governed by an elected Board of County Commissioners (the "Board") which is governed by state statutes and regulations. In addition to the members of the Board, there are five elected Constitutional Officers: Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser, and Supervisor of Elections. The Constitutional Officers maintain separate accounting records and budgets. The accompanying financial statements present the combined financial position and combined results of operations of the various fund types and account groups and the changes in financial position of the proprietary fund types for the funds controlled by the Board and the County's Constitutional Officers. The Board funds a portion or, in certain instances, all of the operating budgets of the County's Constitutional Officers. The payments by the Board to fund the opera- tions of the Constitutional Officers are recorded as operating transfers out on the financial statements of the Board and as operating transfers in or charges for services on the financial statements of the Constitutional Officers. Accordingly, such amounts and the budget relating to those amounts have been eliminated in the accompanying combined financial statements. The accounting policies of the County conform to generally accepted accounting principles, as applicable to governments. The following is a summary of the more significant policies. A. Reporting Entity - Generally accepted accounting principles require that finan- cial operations of governmental departments, agencies, commissions or authori- ties over which the governmental unit's elected officials have oversight respon- sibility be included in the reporting entity's financial statements. Criteria used to determine if an agency should be included in the County's report were the oversight responsibility and the scope of public service. Oversight responsibility implies that an agency is dependent on another. The manifestations of oversight responsibility are financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations, and accountability for fiscal matters. The manifestations of scope of public service are whether the activity is for the benefit of the reporting entity and/or its residents and whether the activity is conducted within the geographic boundaries of the reporting entity and is generally available to the citizens of that entity. 13 L INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 1. Summary of Significant Accounting Policies - Continued: A. Reporting Entity - Continued - Applying the criteria above has caused the inclusion of the following entities: Indian River County Housing Authority (IRCHA) - The IRCHA was included in the report because the Board provides the primary funding for the operations of the IRCHA. The Board maintains budgetary control over the operating costs of the IRCHA. In addition, they provide use of certain furniture and equipment to the IRCHA at no charge. Due to the proprietary nature of the IRCHA's operations, the IRCHA is reported as an enterprise fund. For budgetary control, the Board maintains a Special Revenue Fund to account for the operating costs of the IRCHA. Funding is provided from operating transfers from the Board's General Fund and operating grants received from the State of Florida. Since the oper- ating costs of IRCHA have been properly reported in the enterprise fund, the Special Revenue Fund has been eliminated for the purposes of this report. Appropriations from the Board totaled $74,235 and the related actual operating costs totaled $70,702 for the fiscal year. The IRCHA cannot overspend appropri- ations in total. Indian River County Law Library (IRCLL) - The IRCLL was included in the report because a member of the Board serves on the IRCLL Board, the facilities for the IRCLL are provided by the Board, and funds are provided to the IRCLL under a special act passed by the Florida State Legislature at the request of the Board. In prior years, the IRCLL was reported as a special revenue fund. As of October 1, 1989, the IRCLL became a department of the Board of County Commissioners' General Fund. On October 1, 1989, a residual fund equity transfer out of the IRCLL Special Revenue Fund to the Indian River County General Fund in the amount of $8,569 was made. North Indian River County Fire District, West Indian River County Fire District, and South Indian River County Fire District - The fire districts were included in the report because the Board sits as the Board for each fire district, approves the budget and sets the millage rate for each fire district, and desig- nates the management of each fire district. The fire districts are reported as special revenue funds. The following entities, which meet the scope of public service criteria, have been excluded from this report: Indian River County School Board District (IRCSBD) - The IRCSBD has a separately elected board, maintains its own financial records and reports to the Florida Department of Education. Indian River County Hospital (IRCH) - The IRCH has a separately elected board, maintains its own financial records, can issue debt with the approval of its board or the voters, and issues its own report. Indian River County Mosquito Control District (IRCMCD) - The IRCMCD has a sepa- rately elected board, maintains its own financial records, and issues its own report. 14 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 1. Summary of Significant Accounting Policies - Continued: Indian River County Health Department (IRCHD) - The Board does provide some funds for the operations of the IRCHD, sets part of the fee schedule, and must provide the facilities for the IRCHD. However, the Florida Department of Health and Rehabilitation appoints the management of the IRCHD, maintains the financial records, and includes the IRCHD in its own report. The funds and facilities provided by the Board are mandated by the Florida State Statutes. B. Fund Accounting - The accounts of the County are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses, as appropriate. Government resources are allo- cated to and accounted for in individual funds based upon the purposes for which they,are to be spent and the means by which spending activities are con- trolled. The purpose of the County's various funds and account groups is as follows: Governmental Funds General Fund - The General Fund is the general operating fund of the County. It is used to account for all financial resources, except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Funds - Debt Service Funds are used to account for the accu- mulation of resources for, and the payment of, general long-term debt principal, interest and related costs. Capital Proiects Funds - Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by the proprietary funds). Proprietary Funds Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. 15 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 1. Summary of Significant Accounting Policies - Continued: Proprietary Funds - Continued Internal Service Funds - The Fleet Management and Self Insurance Internal Service Funds are used to account for the financing of goods and services provided to other departments or agencies of the County, on a cost - reimbursement basis. Fiduciary Funds Trust and Agency Funds - Trust and Agency Funds are used to account for assets held by the County in a trustee capacity or as an agent for indi- viduals, private organizations, other governments, and/or other funds. These include Agency Funds and an Expendable Trust Fund. Account Groups General Fixed Assets - To account for all fixed assets of the County, except fixed assets of proprietary funds. General Long -Term Debt - To account for all the outstanding principal balances of general and special obligation bonds, notes, capital leases and compensated absences of the County, except long-term obligations of proprietary funds. C. Measurement Focus Governmental Fund Types - General, Special Revenue, Debt Service and Capital Projects Funds are accounted for on a "spending" or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on the balance sheets. Accordingly, the reported unreserved fund balance (net current assets) is considered a measure of available, spend- able or appropriable resources. Governmental Fund Type operating statements present increases (revenues and other financing sources) and decreases (expendi- tures and other financing uses) in net current assets. Proprietary Fund Types - The Enterprise and Internal Service Funds are accounted for on an "income determination" measurement focus. Accordingly, all assets and liabilities are included on the balance sheet, and the reported fund equity (total reported assets less total reported liabilities) provides an indication of the economic net worth of the fund. Operating statements for the Proprietary Fund Types report increases (revenues) and decreases (expenses) in total eco- nomic net worth. Fiduciary Fund Types - The Expendable Trust Fund is accounted for in the same manner as Governmental Funds. The Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. 16 1! INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 1. Summary of Significant Accounting Policies - Continued: C. Measurement Focus - Continued Account Groups - The General Fixed Assets Account Group and the General Long - Term Debt Account Group are concerned only with the measurement of financial position. They are not involved with the measurement of results of opera- tions. Fixed assets, which are not used in Proprietary Fund operations, are accounted for in the General Fixed Assets Account Group. Depreciation is not charged on the general fixed assets. Long-term debts, which are not intended to be financed through the Proprietary Funds, are accounted for in the General Long -Tera Debt Account Group. D. Basis of Accounting - Basis of accounting refers to when revenues and expendi- tures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All Governmental Funds are accounted for using the modified accrual basis of accounting. Under the modified accrual basis, revenues are recognized when they become measurable and available as net current assets. Primary revenues, including taxes, intergovernmental revenues, charges for services, rents and interest are treated as susceptible to accrual under the modified accrual basis. Other revenue sources are not considered measurable and available, and are not treated as susceptible to accrual. Expenditures are generally recog- nized under the modified accrual basis of accounting when the related fund liability is incurred. An exception to this general rule is that principal and interest on general long-term debt is recognized when due. Proprietary Funds - The Enterprise and the Internal Service Funds are accounted for using the accrual basis of accounting. Under this method, revenues are recognized when they are earned and expenses are recognized when they are incurred. Unbilled utility receivables are recorded at year end. Fiduciary Funds - The Expendable Trust Fund and the Agency Funds are accounted for on the modified accrual basis. E. Equity in Pooled Cash and Investments - The County, for accounting and invest- ment purposes, maintains a pooled cash and investment account for all Board funds. This gives the County the ability to invest large amounts of idle cash for short periods of time and to maximize earning potential. The "equity in pooled cash and investments" represents the amount owned by each fund of the Board. Cash and investments of Constitutional Officers are generally maintained in separate accounts, but have been combined with the Board's equity in pooled cash and investments for financial statement purposes. 17 INDIAN RIVER COUNTY, FLORIDA. NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 1. Summary of Significant Accounting Policies - Continued: F. Investments - Investments consist of Repurchase Agreements, U.S. Treasury Securities, U.S. Government Agency Securities, and the Local Government Surplus Funds Trust Fund that are recorded at cost, which approximates market value. Investments held in the deferred compensation plan are recorded at market value. G. Allowance for Doubtful Accounts - The County provides an allowance for water and sewer accounts receivable that may become uncollectible. At September 30, 1990, this allowance was $4,000. The Housing Authority provides an allowance for rents receivable which may become uncollectible which amounted to $11,884 at September 30, 1990. No other allowances for uncollectible accounts are main- tained since other fund accounts receivable are considered collectible as reported at September 30, 1990. H. Inventories - Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of accounting. The costs of General Fund and Expendable Trust Fund inventories are recorded as expenditures when consumed rather than when purchased. Inventory of the Clerk of the Circuit Court, included in the Combined Agency Funds, represents documentary stamps on consign- ment from the State of Florida. Stamps are carried at cost, which is their face value. I. Property, Plant and Equipment (1) Property, plant and equipment purchased in the Governmental Fund Types are recorded as capital outlay expenditures at the time of purchase. Such assets are capitalized at cost in the General Fixed Assets Account Group, except for certain improvements other than buildings ("infrastructure") such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. Donated and confiscated assets are recorded in the general fixed assets at their fair market value at the time received. No depreciation has been provided on general fixed assets. The Board holds legal title for the general fixed assets used in the operations of the Board, Property Appraiser, Tax Collector, Supervisor of Elections, and Clerk of the Circuit Court and is accountable for them under Florida law. The Sheriff is accountable for and thus maintains general fixed asset records pertaining only to equipment used in his operations. These assets have been combined with the Board's general fixed assets in the General Fixed Assets Account Group. 18 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 1. Summary of Significant Accounting Policies - Continued: I. Property, Plant and Equipment - Continued (2) Property, plant and equipment of the Proprietary Fund types are recorded at cost. Donated property, plant and equipment are capitalized at their fair market value at the time received. Depreciation is provided using the straight-line method over the estimated useful lives of the various classes of depreciable assets. The estimated useful lives of the various classes of depreciable assets are as follows: Assets Building and improvements Machinery and equipment Utility distribution systems Years 25 - 40 3 - 10 25 - 50 J. Capitalization of Interest - Interest costs related to bond issues are capital- ized during the construction period. These costs are netted against applicable interest earnings on construction fund investments. During the current period, the Water and Sewer System Enterprise Fund incurred interest expense during the construction period totaling $498,333. Related interest earnings on construc- tion fund investments totaled $138,630 for net capitalized interest of $359,703. K. Unamortized Bond Costs - Bond issue costs and legal fees associated with the issuance of Proprietary Fund revenue bonds are amortized over the life of the bonds using the straight-line method of accounting. L. Unamortized Bond Discount - Bond discount associated with the issuance of Proprietary Fund revenue bonds are amortized according to the interest method, which results in a constant rate of interest being applied to the amount out- standing at any given time. For financial reporting, unamortized bond discount is netted against applicable long-term debt. M. Intangible Assets - Land use rights purchased by the Water and Sewer System Fund from the Golf Course Fund for irrigating the golf course with treated effluent are being amortized using the straight-line method over the estimated useful life of 20 years. N. Deferred Revenues - Deferred revenues reported in applicable Governmental Fund Types represent unearned revenues or revenues which are measurable but not available and, in accordance with the modified accrual basis of accounting, are reported as deferred revenues. The deferred revenues will be recognized as revenue in the fiscal year they are earned or become available. 19 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 1. Summary of Significant Accounting Policies - Continued: 0. Accrued Compensated Absences - The County records compensated absences in the Governmental Fund Types as an expenditure for the amount accrued during the year that would normally be liquidated with expendable available financial resources. The remainder of the liability is reported in the General Long -Term Debt Account Group. Proprietary Fund Types accrue compensated absences in the period they are earned. P. Contributions - The contributions accounted for in the Proprietary Fund Types represent contributions from other funds, State and Federal Aid programs,. and impact fees charged to new customers for their anticipated burden on the existing system. Depreciation expense on contributed fixed assets is reflected in the statement of revenues, expenses and changes in retained earnings. Depreciation on contributed fixed assets is transferrred to the related contribution accounts (reducing contributions) instead of retained earnings. 0. Budgets and Budgetary Accounting - The County uses the following procedures in establishing the budgetary data reflected in the financial statements: (1) The Constitutional Officers submit, at various times, to the Board and to certain divisions within the Department of Revenue, State of Florida, a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. (2) The Department of Revenue, State of Florida, has the final authority on the operating budgets for the Tax Collector and Property Appraiser included in the General Fund. (3) On or before July 15 of each year, the Director of the Office of Management and Budget, as the Board's designated budget officer, submits to the Board a tentative budget for the ensuing fiscal year. The tenta- tive budget includes proposed expenditures and the means of financing them. The Board then holds workshops to review the tentative budget by Fund on an object level. (4) During September, public hearings are held pursuant to Section 200.065 of the Florida Statutes in order for the Board to receive public input on the tentative budget. At the end of the last public hearing, the Board enacts ordinances to legally adopt the budgets for all governmental fund types. The budgets legally adopted by the Board set forth the anticipated revenues by source and the appropriations by function. (5) Formal budgetary integration of an object level is used as a management control device for the governmental funds of the County. Management is authorized to transfer budgeted amounts between objects and departments in any fund as long as management does not exceed the total appropriations of a fund. Board approval to amend the budget is only required when unanticipated revenues are received that management wishes to have appropriated thereby increasing the total appropriations of a fund. 20 L INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 1. Summary of Significant Accounting Policies - Continued: Q. Budgets and Budgetary Accounting - Continued (6) Revisions made to the original budget by the Board for unanticipated revenues were as follows: Original Total Revised Budget Revisions Budget General Fund $33,220,030 $1,2.74,014 $34,494,044 Special Revenue Funds: Road Improvement Fees 3,426,889 598,000 4,024,889 Police Academy 37,000 61,500 98,500 Court Facilities 79,132 8,162 87,294 Section 8 - Rental Assistance 974,237 23,910 998,147 Road and Bridge 6,397,482 11,000 6,408,482 Special Law Enforcement 6,310 10,310 16,620 Parks Development 4,750 138,035 142,785 South County Fire District 5,324,410 9,600 5,334,010 West County Fire District 62,292 (2,117) 60,175 Environmental Control Board 14,618 3,200 17,818 Tourist Development 208,775 189,925 398,700 Street Lighting Districts 131,883 4,164 136,047 Capital Projects Funds: Indian River Boulevard North 5,068,800 1,351,009 6,419,809 Treasure Shores Park 121,425 121,425 Golden Sands Park 135,122 135,122 (7) Budgets for the governmental fund types are adopted on a basis consistent with generally accepted accounting principles. (8) Appropriations for the County lapse at the close of the fiscal year. R. Total Columns on Combined Statements - Overview - Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable in a consolidation. Interfund eliminations have not been made in the aggregation of these data. 21 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 2. Cash and Investments: The County maintains a cash and investment pool that is available for use by all funds except those whose cash and investments must be segregated due to bond cove- nants or other legal restrictions. Cash and Cash Equivalents - At September 30, 1990, the carrying amount of the County's cash and cash equivalents was $19,436,017 made up of demand deposits, certificates of deposit, money market accounts, savings accounts and petty cash. All deposits with financial institutions were 1001 insured by federal depository insurance or by collateral pursuant to the Public Depository Security Act of the State of Florida. Various deposits were earning interest from 5-111. Investments - Florida Statutes, the Board of County Commissioners' Investment Policy, and various bond covenants authorize investments in certificates of deposit, money market accounts, savings accounts, repurchase agreements, the Local Government Surplus Funds Trust Fund administered by the Florida State Board of Administration, obligations of the U.S. Government, and government agencies unconditionally guaran- teed by the U.S. Government. Certificates of deposit, money market accounts and savings accounts and bank balances are reported as cash and cash equivalents above. The County invested in only these types of instruments during the fiscal year. The County's investments are categorized below to give an indication of the level of risk assumed at year end. Category 1, defined as insured or registered or for which the securities are held by the County or its agent in the County's name. Category 2, defined as uninsured and unregistered, with securities held by the counterparty's trust department in the County's name. Schedule of Investments at September 30, 1990 Repurchase Agreements U.S. Treasury Securities U.S. Government Agency Securities Category Carrying 1 2 Amount $ 11,785,541 36,055,247 $ 3,850,000 $ 3,850,000 11,785,541 36,055,247 Total Investments S47.840.788 S 3,850.000 X551.690.788 Market Value $ 3,850,000 10,941,232 36,713,945 ;51.505.177 In addition to the cash and temporary cash investments listed above, employee deferred compensation plan (see Note 8) cash and temporary cash investments were $532,151, which are carried at market value. These investments are held separately from those of other County funds. As prescribed by the plan documents, the investment portfolios include investment obligations of the U.S. Government, mutual funds and money market accounts, and are held by the plan administrators but not in the County's name. 22 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 3. Property Tax Revenues; Property tax revenues recognized for the 1989-90 fiscal year were levied in October, 1989. Virtually all unpaid taxes are collected via the sale of tax certificates prior to fiscal year end, therefore, there were no material taxes receivable at fiscal year end. Rey dates in the property tax cycle (latest date where appropriate) are as follows: Revenues for Fiscal Year Ending September 30, 1990 January 1, 1989 June 29, 1989 October 31, 1989 Date of lien Assessment roll certified Property taxes levied Beginning of fiscal year for which taxes have been levied Tax bills rendered Property taxes payable: Maximum discount Delinquent Tax certificates sold on unpaid property taxes 4. Property, Plant and Equipment: A. General Fixed Assets - A summary of changes in the General Fixed Assets Account Group follows: October 1, 1989 October 31, 1989 November 30, 1989 April 1, 1990 June 6, 1990 Land Buildings and Improvements Balance at October 1, 1989 $15,879,630 $17,193,206 Additions 538,104 542,370 Deletions 2,169,584 Balance at Septem- ber 30, 1990 Construction Equipment In Progress $15,411,028 $ 1,264,653 1,525,449 14,377,494 463,417 1,197,088 Total Property, Plant and Equipment $49,748,517 16,983,417 3,830,089 X514.248.150 S17.735.576 X516.473.060 X514.445.059 562.901.845 23 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 4. Property, Plant and Equipment - Continued: B. Proprietary Fund Type Fixed Assets - A summary of proprietary fund type property, plant and equipment follows: Internal Enterprise Service Land $ 5,518,638 $ Buildings, distribution systems and improvements 59,909,733 108,521 Equipment 5,334,206 168,703 Construction in progress 4,351,021 - Total Property, Plant and Equipment 75,113,598 277,224 Less: Accumulated depreciation 9,857,822 172,788 Total 5. Interfund Accounts: S65,255,776 $ 104.436 The following is a summary of interfund receivables and payables as of September 30, 1990 which includes Due To/Due From and Advance To/Advance From Other Funds. Fund Receievable Payable General Fund $ 3,193,495 $ 84,046 Special Revenue Funds: Policy Academy 5,871 Court Facilities 4,436 Road and Bridge 39,547 Special Law Enforcement 17,908 South Co. Fire District 60,721 North Co. Fire District 7,799 West Co. Fire District 954 Petition Paving - 1,500,000 Drug Abuse 150 Vero Lakes Estates 775 Street Lighting Districts 1,684 Criminal Justice 8,733 8,733 Debt Service Funds: Library Bonds North County Sewer Assessment Bonds (recorded as an Advance From Other Funds) Capital Projects Funds: Optional Sales Tax 24 21,986 607,500 1,500,000 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 5. Interfund Accounts - Continued: Fund Enterprise Funds: Solid Waste Disposal District Golf Course County Building Water and Sewer System (includes Advance To Other Funds of 8607,500) Receivable Payable 1,977 3,955 7,909 648,058 Internal Service Funds: Self Insurance - 103,833 Agency Funds: Clerk - 72,168 Sheriff - 22,299 Property Appraiser - 127,379 Totals S 4,025.958 S4,025.958 6. Long -Term Debt: A. Enterprise Fund Revenue Bonds - The County has adopted resolutions for bonds payable that provide for various covenants. These covenants are listed below for each bond payable. Solid Waste Disposal System Revenue Bonds, Series 1988 (1) Pledge of Revenue - The Series 1988 bonds are payable from and collateral- ized by a lien on net revenues of the system, including the proceeds derived from the collection of disposal charges which are annual assess- ment charges against assessable property for the disposal of solid waste. (2) Establishment of Various Accounts a. Operating account to pay all operating and maintenance costs of the system. b. Sinking Fund account to pay principal and interest payments coming due during the current fiscal year. c. Reserve account to accumulate an amount equal to the maximum amount of principal and interest coming due in any ensuing fiscal year. d. Renewal and Replacement Fund and capital projects account to pay for the costs of enlargements, replacements or emergency repairs to the system. The amounts to be maintained in these accounts are determined by consulting engineers. The amounts in these accounts are restricted by the bond resolution. 25 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 6. Long -Term Debt - Continued: Solid Waste Disposal System Revenue Bonds, Series 1988 - Continued (3) Other Covenants - The resolution provides for several additional covenants such as required revenue rates, minimum insurance levels, adoption of annual budget, certain required engineering reports. (4) Bonds Issued - At September 30, 1990, the revenue bonds consisted of the following: Description 1988 Solid Waste Disposal System Revenue Bonds Outstanding at Rates and Original September 30, Date Maturity Issue 1990 5.25%-7.4% 6/1 and 12/1 6/1/02 $8,240,000 $ 7,440,000 Less: Current portion Long -Term Portion Recreational (Golf Course) Revenue Bonds, Series 1985 430,000 S 7.010.000 (1) Pledge of Revenue - The revenue bonds are collateralized by a lien on the net revenues derived from the operations of the project and racetrack and jai alai fronton funds accruing annually to the County. (2) Establishment of Various Accounts a. Operating accounts to reflect all transactions which relate to the project. b. Sinking Fund account to pay principal and interest coming due during the current fiscal year. The amounts in this account are restricted by the bond resolution. c. Reserve Fund account to accumulate an amount equal to the maximum amount of principal and interest coming due in any ensuing fiscal year. This account may be established at the option of the Board of County Commissioners. The amounts in this account are restricted by the bond resolution. d. Renewal and Replacement Fund account to pay for the costs of exten- sions, enlargements, additions, replacements or emergency repairs to the system. The amounts deposited into this account are determined by the County Administrator. The amounts in this account will be restricted by the bond resolution. 26 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 6. Long -Term Debt - Continued: Recreational (Golf Course) Revenue Bonds, Series 1985 - Continued (3) Other Covenants a. The proceeds of this bond issue are to finance the construction of a public golf course and related clubhouse facility, and interest on the bonds for the first three years. b. The bond resolution provides for additional covenants such as annual audit requirement and minimum insurance levels. (4) At September 30, 1990, these revenue bonds consisted of the following: 1985 Recreational Revenue Bonds Outstanding at Rates and Original September 30. Dates Maturity Issue 1990 6.40%-7.50% 9/1 9/1/15 $2,720,000 $ 2,720,000 Less: Current portion 40,000 Unamortized discount 61.457 Long -Term Portion S 2.618.543 Water and Sewer Revenue Refunding Bonds, Series 1989 (1) Pledge of Revenues - The revenue bonds are collateralized by a pledge of all gross revenues of the system and impact fees. (2) Establishment of Various Accounts a. Revenue Fund account to pay all operating and maintenance costs of the system. b. Sinking Fund account to pay principal and interest coming due during the current fiscal year. The amounts in this account are restricted by the bond resolution. Since the amounts are derived from operating revenues and are restricted, a corresponding reserve has been estab- lished in the retained earnings. 27 11 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 6. Long -Term Debt - Continued: Water and Sewer Revenue Refunding Bonds, Series 1989 - Continued (2) Establishment of Various Accounts - Continued c. Reserve Fund account to accumulate an amount equal to the maximum amount of principal and interest coming due in any ensuing fiscal year. An initial deposit was made from bond proceeds with the remainder to be derived from operating revenues. When the maximum amount is obtained, no further deposits are necessary. The amounts in this account are restricted by the bond resolution. A corresponding reserve has been established in the retained earnings for the amounts derived from operating revenues. (3) Bonds Issued - At September 30, 1990, revenue bonds consisted of the following: Description Outstanding at Rates and Original September 30, Dates Maturity Issue 1990 Water and Sewer Revenue Refunding 6.701-7.25% Bonds, Series 1989 5/1 and 11/1 2019 $6,510,000 $ 6,445,000 it Less: Current portion 70,000 Unamortized bond discount 31,213 Long -Term Portion $ 6.343.787 Water and Sewer Revenue Refunding Bonds, Series 1986 and 1986A (1) Pledge of Revenues - The revenue bonds are collateralized by.a pledge of all gross revenues of the system and impact fees. (2) Establishment of Various Accounts a. Revenue Fund account to pay all operating and maintenance costs of the system. b. Sinking Fund account to pay principal and interest coming due during the current fiscal year. The amounts in this account are restricted by the bond resolution. Since the amounts are derived from operating revenues and are restricted, a corresponding reserve has been estab- lished in the retained earnings. INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 6. Long -Term Debt - Continued: Water and Sewer Revenue Refunding Bonds, Series 1986 and 1986A - Continued (2) Establishment of Various Accounts - Continued c. Reserve Fund account to accumulate an amount equal to the maximum amount of principal and interest coming due in any ensuing fiscal year. An initial deposit was made from bond proceeds with the remainder to be derived from operating revenues. When the maximum amount is obtained, no further deposits are necessary. The amounts in this account are restricted by the bond resolution. A corresponding reserve has been established in the retained earnings for the amounts derived from operating revenues. (3) Bonds Issued - At September 30, 1990, revenue bonds consisted of the following: Description Outstanding at Rates and Original September 30, Dates Maturity Issue 1990 Water and Sewer Revenue Bonds: Series 1986 5% and 9/1 2029 $9,200,000 $ 9,200,000 Series 1986A 7% and 9/1 2029 450,000 450,000 Less: Current portion Long -Term Portion S 9.650.000 Housing Authority Revenue Bonds On April 1, 1986 and August 23, 1988, the Housing Authority adopted resolutions authorizing the issuance of a revenue bond payable to the U.S. Department of Agriculture, Farmers Home Administration, for the purpose of financing a part of the cost of acquiring, erecting and constructing low -rent, multi -family housing facilities (Victory Park Apartments - Phase I and Phase II), including the repayment of certain notes payable to the State of Florida for the acquisition of land. The bond and interest thereon are payable solely from and collateral- ized by a prior lien upon and a pledge of the gross revenues to be derived from the project. 29 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 6. Long -Term Debt - Continued: Housing Authority Revenue Bonds - Continued The revenue bond resolution provides for the following: (1) The revenue bond obligation consists of: Description Indian River County Housing Authority Revenue Bonds: Victory Park Phase I Victory Park Phase II Original Balance Interest Revenue Outstanding Rate Bond September 30, and Dates Commitment 1990 1% per annum on the unpaid balance, payable September 1 each year Less: Current portion $1,908,000 $ 1,802,000 1,908,000 $3.816.000 1,855,000 3,657,000 107,000 Long -Term Portion ; 3.550.000 (2) Early Redemption - Each revenue bond is redeemable at the option of the Housing Authority at par plus accrued interest and plus a premium ranging between 0S and 5%, depending on the year of redemption and the holder of the bond at the time of redemption. The Housing Authority may redeem, in whole or in part, at any time, the principal portion of each revenue bond on any interest payment date, at the price of par plus accrued interest, without premium if the bond is held by the U.S. Department of Agriculture, Farmers Home Administration. 30 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 6. Long -Term Debt - Continued: Housing Authority Revenue Bonds - Continued (3) The revenue bond resolutions provide for the following: The revenue bonds do not constitute a lien upon the project of any part thereof or upon any other property of the Housing Authority or a pledge of the full faith and credit of the Housing Authority. The Housing Authority collects fees, rentals and other charges for the use of the facilities of the project, and out of such funds pays the principal of and interest on the land, the necessary expenses of operating and maintenance and all reserve and sinking fund require- ments. Fees, rentals and other charges will not be reduced so as to be insufficient to provide funds for such purposes. Establishment of Various Accounts - The Loan and Grant Resolution provides for the creation and establishment of the following accounts, which are to be deposited with a depository in the State of Florida, which is a member of the Federal Deposit Insurance Corporation and which is eligible under the laws of the State of Florida to receive public funds: a. Revenue Account to deposit all gross revenues and provide for payment of costs of operation and maintenance of the project. b. Bond Service Accounts: • Interest Account to deposit monthly from Revenue Account 1/12 of all interest coming due on the next interest payment date. • Principal Account to deposit monthly from Revenue Account 1/12 of the principal amount which will become due on such annual maturity date. Renewal, Replacement and Improvement Account to deposit from the Revenue Account 93,167 per month. In addition, at the end of each fiscal year, all excess funds remaining in the Revenue Account are deposited in the Renewal Replacement and Improvement Account until the amount on deposit equals $380,000. 31 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 6. Long -Term Debt - Continued: Housing Authority Revenue Bonds - Continued c. Investment Restrictions - Monies in any account created in the resolution may be invested in authorized investments which nature not later than 15 days prior to the dates on which the monies will be needed for the purpose of such fund. Authorized investments as specified by the resolution are as follows: • Direct obligations of the U.S. Government • Bonds, debentures or notes backed by the full faith and credit of the U.S. Government Annual Debt Service Payments - Enterprise Fund Bonds Payable - The annual debt service payments to amortize the bonds payable outstanding at September 30, 1990 are as follows: Mater and Solid Mast• Mater and Sower Disposal Recreational Fiscal Tear Sewr Revenue System (Colt Course) Ending Revenue Refunding Revenue Rousing festember 30, Bonds Bonds Bonds Bonds Authority Total 1991 1 491.500 S 563,755 S 933.403 $ 261,360 S 143.570 $ 2,355,590 1992 579,100 543,995 935,695 263,600 163,500 2,666.290 1993 579.668 563.620 934,050 265.630 143.420 2.666.966 1994 579.372 563.260 936,770 242.430 144,330 2.444.162 1995 579.662 567,310 937,660 263,980 144.220 2.652.812 1996-2000 2.897.021 2.726.853 6.689,685 1.210.980 719.100 12.243,439 2001-2005 2.896.797 2,720.680 1.878,995 1,223,110 719,750 9,639.332 2006-2010 2.898.565 2.722.880 1.216,125 718.900 7,556.650 2011-2015 2.898.298 2.726,860 1,211,000 718.560 7,552,698 2016-2020 2.897.766 2.116,870 - 665.560 5.730.154 2021-2025 5.217.314 - - - - 5.217.314 Totals 22.515.221 15.806.283 11,266.260 6.076,615 6.260.870 59,883.229 Less: Amounts representing in 12,865,221 9,359,283 3.806.260 3.356,615 583.870 29,971,229 Total Bonds Payable 9.650.000 6.665.000 7,660.000 2,720,000 3,657,000 29,912.000 Less: Current portion - 70,000 430,000 60.000 107,000 647.000 Unsmortised bond discount 31.213 11.657 92.670 S 9.650.000 6 6.363.787 S 7.010.000 62.615.543 S3.530.00Q j29.172.33q B. Enterprise Fund Bond Anticipation Notes - On November 29, 1988, the County issued 6 7/8% Water Revenue Bonds, Series 1988, Anticipation Notes in the principal amount of $3,900,000. These notes were issued in anticipation of their receipt by the County of the proceeds from the sale of Water Revenue Bonds. From the proceeds of the Bond Anticipation Notes, the County deposited $707,717 into the Notes Payment Account within the Sinking Fund for interest payments to be made to maturity. 32 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 6. Long -Term Debt - Continued: B. Enterprise Fund Bond Anticipation Notes - Continued - At September 30, 1990, revenue bond anticipation notes consisted of the following: Water Revenue Bonds, Series 1988, Anticipation Notes Rates and Dates Maturity Original Issue Outstanding at September 30, 1990 6.8751 12/1/91 S 3.900.000 S 3.900.000 C. Changes in General Long -Term debt follows: Accrued Compensated Absences: Board Clerk of Court Sheriff Tax Collector Property Appraiser Supervisor of Elections Capital Leases: Board Clerk of Court Sheriff Tax Collector Property Appraiser Notes Payable: Board Bonds Payable: Refunding and Improvement Revenue Bonds - 1985 Series Capital Improvement Revenue Bonds - 1987 Series General Obligation Bonds - 1989 Series Special Assessment Bonds Debt - A summary of Balance October 1, 1989 Additions $ 536,364 $ 33,103 108,694 29,179 30,041 737,381 305,800 33,703 29,219 34,638 227,902 631,262 13.278 8,865,000 3,415,000 5,900,000 2,830,188 21,010,188 Totals $22.392.109 33 3,006 17,671 317,954 227 1,775 340,633 16,604 16,604 6,795,000 6,795,000 $7.152.237 changes in general long-term Deletions Balance September 30, 1990 $ - $ 539,370 9,790 40,984 .426,648 29,406 1,896 28,145 1,775 11,686 1,066,328 68,265 237,535 33,703 - 14,455 31,368 34,638 - 28,512 199.390 179,573 468,293 13,278 - 285,000 8,580,000 130,000 3,285,000 1,035,000 4,865,000 397,487 _ 9,227,701 1,847,487 25,957,701 527.492.322 Xi2.052.024 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 6. Long -Term Debt - Continued: D. General Long -Term Debt (1) Revenue Bonds - On July 10, 1985, the Board adopted a resolution autho- rizing the issuance of $25,000,000 of Refunding and Capital Improvement Revenue Bonds. On November 1, 1985, the Board issued $9,855,000 of Refunding and Improvement Bonds, 1985 Series. The proceeds of this issue legally defeased the County's Capital Improvement Revenue Bonds, Series 1980 and 1981, and provided funds to finance the cost of construction and to reimburse the County for certain capital projects. On July 1, 1987, the Board issued 53,655,000 of Capital Improvement Revenue Bonds, 1987 Series. The proceeds of this issue provide funds for construction of certain capital projects. The bonds and interest thereon, from both these issues, are payable solely from and collateralized by a first lien upon and pledge of the County's half -cent sales tax and related investment income. The revenue bond resolution, as dated July 10, 1985, and as amended and supplemented, provides for the following: a. The Revenue Bonds consist of: Balance Interest Outstanding Rates and Original September 30, Dates Maturity Issue 1990 Refunding and Improve- ment Revenue Bonds, 1985 Series - 5.5%-8.75% Serial Bonds 9/1 & 3/1 1997 $ 4,000,000 $ 2,725,000 Term Bond 9% 2000 1,735,000 1,735,000 Term Bond 9.125% 2002 1,440,000 1,440,000 Term Bond 9.125% 2005 2,680,000 2,680,000 9,855,000 8,580,000 Capital Improvement Revenue Bonds, 1987 Series - Serial Bonds Term Bond 4.75%-7.30% 9/1 i 3/1 7.75% 34 2000 2,165,000 1,795,000 2005 1,490,000 1,490,000 3,655,000 , 3,285,000 S13,510.000 S11.865.000 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 6. Long -Term Debt - Continued: D. General Long -Ter■ Debt - Continued (1) Revenue Bonds - Continued b. Disbursements or expenditures of bond proceeds which have been desig- nated as construction funds shall be made only after written approval of the County Administrator or his designee. c. Establishment and maintenance of various funds - • Revenue Fund to record County sales tax monies received by the County from the State. Sinking Fund to pay principal and interest payments coming due during the current fiscal year. The amounts in this account are restricted by the bond resolution and thus, a reserve of fund balance has been established for them. d. Other covenants - The resolution provides for several additional covenants such as required books and records and annual audit. (2) General Obligation Bonds - On July 27, 1989, the Board issued $5,900,000 of General Obligation Bonds, 1989 Series. The issuance of the 1989 Series Bonds was approved by a majority of votes cast in a bond referendum held on September 2, 1986 by the qualified electors of the County. The princi- pal and interest on the Bonds are payable from ad valorem taxes levied and collected upon all taxable property within the County. The proceeds from this issue provide funds for certain improvements to and expansion of the County -wide library system, including land acquisition, construction of branch buildings and purchase of library materials. At September 30, 1990, General Obligation Bonds consisted of the following: Description Outstanding at Rates and Original September 30, Dates Maturity Issue 1990 General Oblige- 5.75%-6.15% tion Bonds, 1989 Series 7/1 4 1/1 1994 ;5.900.000 X54.865.000 35 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 6. Long -Term Debt - Continued: D. General Long -Term Debt - Continued (3) Special Assessment Bonds - The proceeds of the initial special assessment bonds were used to extend the water and sewer distribution systems along Florida State Road 60. The proceeds of the Rockridge Special Assessment bonds were used for acquisition and construction of sewer line extensions in the Rockridge Sanitary Sewer area. The proceeds of the North County Special Assessment bonds were used for acquisition and construction of -a physically independent North County Wastewater System. The payments of principal and interest on special assessment bonds and all other required payments are being paid solely from the proceeds of the assessments levied against benefiting property owners. There is no secon- dary lien on the assets or the revenues of the County's Water and Sewer System, however, if through foreclosure proceedings the property cannot be sold at auction, then the County must acquire it for its market value. At September 30, 1990, special assessment bonds consisted of the following: Description Route 60 Waterline construction Route 60 Sewerline construction Rockridge Sewer construction North County Sewer construction Rates and Dates 8.47% 5/1 8.47% 1/1 6.75%-8.00% 6/1 i 2/1 7.75% 4/1 i 10/1 36 Outstanding at Original September 30, Maturity Issue 1990 1997 $ 430,000 $ 334,444 1996 2,797,675 2,098,257 2000 720,000 720,000 2000 6,075,000 6,075,000 S10.022.675 S 9.227.701 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 6. Long -Term Debt - Continued: D. General Long -Term Debt - Continued: (4) The annual debt service requirements to amortize all revenue bonds and general obligation bonds and special assessment bonds outstanding at September 30, 1990 are as follows: General Revenue Sonde Obligation Bonds Refunding !local Tear and Capital Ending Improvement Improvement Series jeoteaber 30. 1985 Series 1987 Series 1959 1991 f 1.060,076 S 368.523 5 1.100.152 1992 1.062.506 371,097 1,403.852 1993 1.062.341 367,760 1.408.352 1994 1,064,388 368,760 1.417.102 1995 1,063,106 368,840 - 1996-2000 5,307,038 1,862.960 - 2001-2005 5,312.638 1.853,862 2006-2009 - - Totals 15,932,096 5,541,602 5.629,458 Less: Amount representing interest 7.352.096 2,256,802 764.458 Total 5 8.580.0011 5 3.265.00Q ; 4.865.000 fiscal Tear Special A nt Bonds Ending Route 60 Route 60 Rockridge North County September 30, Waterline Sewerline Water Sewer Total 1991 S 76,105 5 527,432 $ 96.960 S 1.080,812 $ 1,781,309 1992 72,058 497,811 119.195 1,033,538 1,722,602 1993 68,012 468.191 119,295 986.262 1.641,760 1994 63,965 438,571 108,895 938.988 1,550.419 1995 59,918 408,950 108,715 891,713 1.469,296 1996-2000 107.696 379,330 445,770 3,728,312 4,661,108 2001-2005 - - - - 2006-2009 Totals 447,754 2.720.285 998,830 8,659,625 12,826.494 Less: Amount representing interest 113.310 622,026 278.830 2.584,625 3,598.793 Total 55 33�.6t6 S 2.091.257 5 720.00Q ; 6.075.00q ; 9.227.704 (5) The revenue, general obligation, and special assessment bonds are reported in the General Long -Term Debt Account Group since they do not represent obligations of any governmental or proprietary fund types. 37 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 6. Long -Term Debt - Continued: E. Summary of Defeased Debt Outstanding The following outstanding revenue bonds are legally defeased. Since governmental obligations are held in escrow for the payment of principal and interest, the bonds are not liabilities of the County. Retired During Fiscal Year 1990 Outstanding at September 30, 1990 Capital Improvement Revenue Bonds: Series 1980 S 65.000 S 3.900.000 Series 1981 S 20.000 S 630.000 Solid Waste Disposal System Revenue Bonds, Series 1977 S 140.000 S 650.000 F. Capital Leases and Notes Payable (1) General Long -Term Debt Capital Leases - The County has entered into several lease -purchase agreements to purchase various types of equipment with lease terms varying from 24 to 60 months. The following is a schedule of future minimum lease payments under capital leases, together with the present value of the net minimum lease payments, as of September 30, 1990: Year Ending September 30, Board of County Commissioners Property Sheriff Appraiser Total 1991 $ 82,924 $13,531 $ 77,032 $173,487 1992 81,704 9,665 77,032 168,401 1993 59,873 9,665 73,254 142,792 1994 59,873 9,272 3,041 72,186 1995 1,232 - 1,232 Total Minimum Lease Payments 284,374 43,365 230,359 558,098 Less: Amount repre- senting interest 46,839 11,997 30,969 89,805 Present Value of Net Minimum Lease Payments 5237.535 Sal` S199.390 5468293 38 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 6. Long -Term Debt - Continued: F. Capital Leases and Notes Payable - Continued The following is an analysis of the leased property under capital leases: Type of Property Computer equipment Copier equipment Automotive equipment Communication equipment Board of County Property Commissioners Sheriff Appraiser Total $ - $ - $251,120 8254120 - 49,825 - 49,825 475,775 - - 475,775 84,837 - - 84,837 5560.612 X549.825 S251.120 '861.557 The equipment listed above is recorded in the General Fixed Assets Account Group. (2) Enterprise Funds Capital Leases - The County has entered into two lease - purchase agreements to purchase golf course equipment with a lease term of 48 months. This equipment is recorded in the County's Golf Course Enterprise Fund as depreciable assets. The following is a schedule of future minimum lease payments under these capital leases, together with the present value of the net minimum lease payments, as of September 30, 1990: Year Ending September 30, 1991 1992 Total Minimum Lease Payments Less: Amount representing interest Present Value of Net Minimum Lease Payments Less: Current portion $ 31,637 31,637 817 30,820 30,820 (3) Housing Authority Note Payable - At September 30, 1990, the Authority had a note payable, collateralized by land, of $237,515 to Housing Assistance Council, Inc. with interest at 7.75%. The note matures on the earlier of the closing of funding for a new project or March 20, 1991. The note may be renewed at the option of the Housing Assistance Council. The land purchased will be used to construct another 100 -unit, low -rent, multi- family housing facility (Note 15). 39 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 ►. Defined Benefit Pension Plans: A. Florida Retirement System The County's employees, except certain firemen, participate in the Florida Retirement System (FRS), a cost-sharing, multiple -employer public employee retirement system, administered by the Florida Department of Administration. The FRS is noncontributory for all members, all contributions are made by the employer. The FRS has five classes of membership with descriptions and contribution rates in effect during the period ended September 30, 1990 as follows (contribution rates are in agreement with the actuarially determined rates): Regular Class - Members not qualifying for other classes Senior Management Service Class - Members of senior management who do not elect the optional annuity retirement program Special Risk Class - Members employed as law enforcement officers, firefighters, or correctional officers and meet the criteria set to qualify for this class Special Risk Administrative Support Class - Special risk members who are trans- ferred or reassigned to non -special risk and meet the criteria Elected State Officer's Class - Certain elected county officials Period 10/1/89 1/1/90 to 12/31/89 to 9/30/90 13.90% 14.66% 14.95% 16.04% 17.50% 19.90% 14.76% 14.09% 18.44% 19.71% The FRS provides vesting after ten years of creditable service. Members are eligible for normal retirement after vesting (10 years or more creditable service for regular members). Early retirement may be taken anytime after vesting, but there is a five percent benefit reduction for each year prior to normal retirement age (less than 30 years service or 62 years of age for regular members). Members are also eligible for in -line -of -duty or regular disability benefits if permanently disabled and unable to work. Benefits are computed on the basis of age, average final compensation and service credit. 40 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 7. Defined Benefit Pension Plans - Continued: A. Florida Retirement System - Continued The County's contributions to the FRS, which are based on Section 121, Florida Statutes, through September 30, 1990 were $3,876,242 on covered payroll of $24,736,032, for a 15.67% contribution rate. Total payroll for the County was $27,854,074. The County's contribution represented less than 1% of total contributions required of all participating employees. The most recent actuarial study was prepared as of July 1, 1989 which recommends an increase in contribution rates over the next five years in order to meet normal cost and fund the unfunded actuarial accrued liability. The report indi- cated two major changes in procedures and assumptions. The investment return was changed to 8% from 9% and the asset valuation method was changed. Section 121.031(3) of the Florida Statutes requires that an actuarial review of the FRS be performed biennially. The conclusions of the review are included in the annual report of the FRS. As of the most recent annual statewide report dated July 1, 1989, the FRS had 101,791 retirees and beneficiaries, 15,055 vested but terminated potential annuitants and 502,773 active members. Of the active members, 198,113 are vested. The total annual payroll of the vested members was approximately $12 billion. Total July 1, 1989 (in millions) Pension benefit obligation: Active member contributions $ 492 Employer -financed vested benefits 16,122 Employer -financed non -vested benefits 2,796 Total 19,410 Annuitants and other 7,637 Other inactive members 323 Total pension benefit obligation 27,370 Net assets available for benefits (at cost) 16,126 Unfunded pension benefit obligations Siler The amount of the total pension benefit obligation is based on a standardized measurement established by the GASS Statement No. 5. The standardized measure- ment is the actuarial present value of credited projected benefits. This pension valuation method reflects present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date and is adjusted for the effects of projected salary increases and any changes in benefits. 41 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 7. Defined Benefit Pension Plans - Continued: A. Florida Retirement System - Continued Because the standardized measure is used only for disclosure purposes only, the measurement is independent of the actuarial computation made to determine contributions to the pension plan which is the entry age actuarial cost method. For further information, including 10 -year historical trend information, refer to the State of Florida's Comprehensive Annual Financial Report or the various publications available from the Florida Department of Administration. B. Firefighters Pension Plan In October, 1981, the South Indian River County Fire District took over opera- tions of the City of Vero Beach's Fire Department. Full-time firemen were given the option of joining the Florida Retirement System or remaining in the City's plan. Twenty full-time firemen and all of the volunteers elected to remain in the City's plan. Those who joined the Florida Retirement System received refunds of their contributions from the City's plan. The City has by Statute retained fiduciary responsibility for this plan which is a single employer public employee retirement system. Employer contributions to the PERS are made by the County. Benefits vest after 10 years of service. Firefighters who retire at the earlier of age fifty-five and ten years of contributing service or age fifty-two and twenty-five years of contributing service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 2.50 percent of their base compensation over the highest five years of employment, multipled by credited service. The PERS also provides death and disability benefits. These benefits and other requirements are established by State Statute and City of Vero Beach ordinance. The firefighters are required to contribute 7 percent of their compensation. The PERS also receives contributions from the State for insurance premium refunds. The County is required to contribute the remaining amount necessary to pay the annual normal cost plus an amount sufficient to fund any unfunded accrued liability over 40 years. Funding Status and Progress - The amount shown as the "pension benefit obliga- tion" is a standardized disclosure measure of the present value of pension bene- fits, adjusted for the effects of projected salary increases and step -rate bene- fits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of the PERS on a going -concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the PERS. 42 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 7. Defined Benefit Pension Plans - Continued: B. Firefighters Pension Plan - Continued The pension benefit obligations were computed as a part of actuarial valuations performed as of October 1, 1990. Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets compounded annually of 6 1/2%, and (b) projected salary increases of 7% a year compounded annually attributable to inflation. Total unfunded pension benefit obligations are as follows: Pension Benefit Obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits Current employees - Accumulated employee contributions including allocated investment earnings Employer -financed vested Employer -financed nonvested October 1, 1990 $1,255,433 252,647 1,489,879 28,239 Total Pension Benefit Obligation 3,026,198 Net Assets Available for Benefits, at cost 3,072,965 Net Assets Over (Under) Pension Benefit Obligation S 46.767 There were no current year changes in actuarial assumptions or benefit pro- visions that would affect the pension benefit obligation. Actuarially Determined Contribution Requirements and Contributions Made - The County's funding policy provides for actuarially determined periodic contribu- tions to the plans. The required contributions are actuarially determined and include normal coats (after deducting expected employee contributions) and the amount of the additional unfunded obligations created due to increases in plan benefits over a period of 40 years. Employer contribution rates are determined using the frozen entry age actuarial funding method. The Firemen's PERS uses the aggregate actuarial cost method which does not produce a past service liability that is amortized over a fixed number of years. Instead, the value of all projected benefit in excess of current asset is paid off over the future working years of the covered employee. Therefore, this method automatically funds the remaining value of benefits while there are still active members. 43 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 7. Defined Benefit Pension Plans - Continued: B. Firefighters Pension Plan - Continued The significant actuarial assumptions used to determine the actuarially deter- mined employer contribution requirement are the same as those used to compute the actuarial present value of credited projected benefits. There were no changes in the current year in actuarial assumptions, actuarial funding method, or benefit provisions. The contributions made to the plan during the fiscal year ended September 30, 1990 were based on the actuarial report dated January 1, 1989. Contributions made by employees and employer are in agreement with the actuarially determined contributions. An analysis of contributions made during the current fiscal year is as follows: Contributions made: Employee - 7% of compensation State - Premium Tax Refunds Employer - Additional amount necessary to pay the annual normal cost and amortize any unfunded actuarial accrued liability $ 27,813 83,385 Total Contributions 5111.198 Current Year Covered Payroll (same as total current year payroll) $367,752 Contributions as a Percentage of Current Year Covered Payroll: Employee 7.6% State 22.7% Employer .0% 44 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 7. Defined Benefit Pension Plans - Continued: B. Firefighters Pension Plan - Continued Trend Information - The required three-year historical trend information is as follows: Net Assets Available Pension Valuation for Benefits Benefit Percentage arts 1.t gYrketl 9bliaation Punded 1/1/11 42.493.126 12.347.676 97.9% 1/1/19 2.632.777 2.612.444 100.7% 10/1/09 2.933.100 2.607.136 104.6% 10/1/90 2.952.221 3.026.196 97.6% Net Assets Over (Under) Pension Benefit Obliestion 1(32.3321 19.333 120.644 (73.967) Covered Annual 2,11211 1373.364 363.94f 394.597 367.732 Unfunded Pension Benefit Obligation of a 4 of covered Payroll 14.04 20.11 For further information, including the required ten-year historical trend information, refer to the City of Vero Beach's Comprehensive Annual Financial Report. 8. Deferred Compensation Plan: The County offers its employees deferred with the Internal Revenue Code, Section portion of their compensation until future compensation plan are not available to death, or an unforseeable emergency. compensation plans created in accordance 457. The plan permits them to defer a years. The monies placed in the deferred employees until termination, retirement, All amounts of compensation deferred under the plan, all property and rights pur- chased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or beneficiary) solely the property and rights of the County, subject only to the claims of the County's general creditors. Participants' rights under the plan are equal to those of general creditors in an amount equal to the fair market value of the deferred account for each participant. The County has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The County believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. 45 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS -.CONTINUED Year Ended September 30, 1990 9. Seament Information: The County maintains Enterprise Funds for its Water and Sewer System, Solid Waste System, County Building, and Golf Course and Housing Authority Funds. Segment information for the year ended September 30, 1990 follows: Operating Revenues Solid Waste Water Rousing Disposal Golf County and Sever Author - District Course Building, System itv Total . $ 5.221,782 $1,499,366 $ 696.949 $ 5.271,145 $ 360.424 513,049.666 Operating Grant Revenue - - 16,281 16.281 Operating Depreciation and Amortisation Expense 961.283 135.179 30,440 2.230.708 152.155 3.509,765 Operating Income (Loss) 2,025,669 265,643 (118,506) (1,421,869) (54.966) 695,971 Operating Transfers In - - 70,702 70.702 Net Income (Loss) 2,274,566 84.437 (26,503) (1,630,460) 5,748 707,788 Fixed Assets: Additions 2.299.083 65.798 72,274 5,716,994 267.758 8.421.907 Deletions - net of accumulated depreciation 36,843 681 - 230450 60,974 Net blocking Capital (Deficit) 4,770,256 38,721 1,066,093 648,735 (157.929) 6,365,876 Total Assets 15,241,583 2,800,669 1,229.320 64.853,636 5,103,977 89,229,185 Sonde Payable From Operating Revenues - Net 7,010,000 2.618,543 15.993,787 3.550,000 29.172,330 Total Equity 6,598.399 43,893 1,137,567 42,978,223 1,187,399 51,945,481 Current Tear Net Increase in Contributions 150,242 - - 6,434,706 47.303 6.632.251 46 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 10. Operating Leases: The County has entered into operating leases, both as lessor and lessee. Lease terms vary from 5 to 30 years. Lease revenues totaled $45,000 and lease expendi- tures totaled $109,159 for the year ended September 30, 1990. Future Minimum Lease Receipts The following is a schedule by years of minimum future rentals to be received from the School Board on noncancellable operating leases for office space as of September 30: Year Ending September 30, 1991 $ 45,000 1992 45,000 1993 45,000 1994 45,000 1995 45,000 Remaining 663,750 Total future minimum lease receipts S888.750 The property being leased to the School Board is included in the County's General Fixed Asset Account Group and has a carrying value, which approximates cost, of $734,000. Future Minimum Lease Payments The following is a schedule by years of minimum future rentals to be paid by the County for noncancellable operating leases for office space as of September 30: Year Ending September 30, 1991 $109,159 1992 40,920 1993 7,920 Total future minimum lease payments S157.999 47 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 11. Fund Equity: A. The County has established certain reserves for restricted assets of the Enterprise Funds. These assets are restricted by various covenants within the revenue bond issues, as described in Note 6. Reserved retained earnings at September 30, 1990 consist of the following: Solid Waste Nater and t Disposal Golf County Sewer Rousing District Course Building System Authority Total 5 Reserved for debt service 9259,936 9206,693 S 8166.279 $ 8,917 $ 619,823 i Reserved for renewal and replacement 699,668 - 206.827 704 295, Total 6739.402 620 8.� 8116.279 8213.7!! AWASAIIA B. The following is a summary of changes in Proprietary Fund contributions by Fund: Iiterorise finds Internal Service Funds Solid Waste Mater Disposal Colt County Ind Sever Mousing Fleet Self 0 tri t rae euildina Svstea Authority Manaaewant I Total Contributions at October 1, 1959 5273.469 6422.013 S 12,151 $30.212,651 S 996.973 ' 6613,020 $ $32.325.535 lncreaae in contributions 176.607 7,155.066 75.595 15.200 9.623 7.462.174 Depreciation on contributed assets Contributions at Septeaber 30, 1990 (26,363) (750.360) (31.595) 1606.30Q) 1�ilJ9Z 1422.011 s 12.161 136.647.590 11.042.276 UAL= t 6.4:3 119.164./12 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 11. Fund Equity - Continued: C. The County has established certain reserves within the fund equity section of the governmental funds. Reserved fund balances at September 30, 1990 consist of the following: Board of County Commissioners: General Fund: Reserved for emergency management Funds for the emergency management reserve are segregated in compliance with an agreement between the County and a mobile home park to be used solely for emergency management purposes, a general fund type expenditure. Debt Service Funds: Reserved for debt service Library Bonds Refunding and Improvement Bonds Route 60 Sewer Assessment Bonds Route 60 Water Assessment Bonds Rockridge Sewer Assessment Bonds North County Sewer Assessment Bonds These reserves represent fund balances restricted to debt service requirements of the revenue and general obligation bonds. Amount $ 245,515 1,782,098 890,659 314,429 43,806 253,778 ;3.530.285 Capital Projects Funds: Reserved for capital projects Treasure Shores Park $ 111,633 Indian River Boulevard North 5,131,061 Optional Sales Tax 1,362,947 Library Construction 2,569,183 North County Sewer 364,455 S9.539.279 These reserves are the fund balances that are restricted to specified capital projects. 49 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 12. Fund Equity Deficit: The following funds had deficits in fund balance or retained earnings at September 30, 1990: Fund Special Revenue Fund: Petition Paving Enterprise Fund: Golf Course Internal Service Fund: Fleet Management Deficit $453,755 378,120 329,885 The deficit fund balances in the Petition Paving Special Revenue Fund will be eliminated by interfund transfers and special assessments in future periods. The retained earnings deficit in the Fleet Management Internal Service Fund will be eliminated by anticipated operating Income in future periods. The Golf Course began operations during the fiscal year ended September 30, 1987. The retained earnings deficit in the Golf Course Enterprise Fund will be eliminated by anticipated operating income in future periods. 13. Risk Management: The County is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. During the previous fiscal year, the County established a fund to account for risk management called the Self Insurance Fund (an internal service fund). The risk management program began on November 1, 1988. Under this program, the Self Insurance Fund provides coverage for up to a maximum of $100,000 for each worker's compensation claim, $100,000 for each general or auto liability claim, $100,000 for each property damage claim, and $25,000 for each errors or omissions claim. In addition, an aggregate loss fund was established of $600,000. As of October 1, 1989, the County's risk retention amounts were increased to $175,000 for each worker's compensation claim and $500,000 for each general or auto liability claim. Risk retention was decreased to $10,000 for each property damage claim and stayed the same for errors or omissions. The aggregate loss fund was increased to $1,000,000. The County purchases commercial insurance for claims in excess of coverage provided by the Fund and for all other risks of loss. SO INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 13. Risk Management - Continued: All departments of the County participate in the program. Payments are made by various funds to the Self Insurance Fund based on past experience and actuarial estimates of the amounts needed to pay current year claims. The claims liability of $1,113,947 reported in the Fund at September 30, 1990 is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the finan- cial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Estimates for claims incurred but not reported are actuarially deter- mined and recorded. Changes in the Fund's claims liability amount during the current and prior fiscal years are as follows: Beginning -of - Fiscal -Year -Liability Current Year Claims Balance and Charges Claim at Fiscal in Estimates Payments Year End 1988-1989 $ -0- $504,167 $ 88,917 $ 415,250 1989-1990 415,250 866,250 167,553 1,113,947 14. Commitments and Contingencies: A. Litigation - The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its operations. In the opinion of management, based on the advice of legal counsel, the ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the County. B. Construction Commitments - The County has various construction contracts out- standing at September 30, 1990. In the Capital Projects Funds projects are for Indian River Boulevard North, Treasure Shores Park, New North County and Main Libraries, Phase III of the Jail, and New Health Department Building. In the Enterprise Funds, the landfill expansion, Golf Course expansion, North County Sewer Line, and various water and sewer projects are under construction. A summary of these projects at September 30, 1990 is as follows: Total contract price Total paid as of September 30, 1990 Remaining commitment at September 30, 1990 Capital Projects $12,945,180 9,418,166 S 3.27.014 Sl Enterprise Total $12,975,998 $25,921,178 7,641,243 17,059,409 S 5.334.755 S 8.861A769 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1990 14. Commitments and Contingencies - Continued: .C. Grants - Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to the grantor agency would become a liability of the County. In the opinion of management, any such adjustments would not be significant. 15. Subsequent Events: A. Housing Authority - During fiscal year 1990, the Housing Authority acquired land in connection with construction of another low -rent, multi -family housing facility. The Authority has received preliminary approval for construction of 100 units from Farmers Home Administration. FHA funding consists of a 53,816,000 loan and $1,200,000 FmHA grant. Construction of these units is expected to begin during fiscal year 1991. B. On December 11, 1990, the Board approved a plan for the acquisition of property as a site for the new County Courthouse in an amount approximating $2.5 million. C. On January 28, 1991, the Board approved a plan for the issuance of approximately $8,250,000 in revenue bonds for the acquisition of land and construction of an additional eighteen -hole golf course. From the proceeds of these bonds, the County would advance refund the outstanding balance of Recreational (Golf Course) Revenue Bonds, Series 1985 in the amount of $2,720,000. 52 Appendix C Summary of Certain Provisions of the Resolution APPENDIX C SUMMARY OF CERTAIN PROVISIONS OF THE RESOLUTION The Recreational Revenue Bonds, Series 1991, constitute revenue bonds as described in Indian River County, Florida, Resolution No. 85-78, adopted July 17, 1985, as amended and supplemented (the "Resolution"), and together with the County's Recreational Revenue Bonds, Series 1985 and any Additional Parity Obligations are considered "the Bonds" for all purposes of the Resolution. The following summary, together with the information contained in the Official Statement under the captions "DESCRIPTION OF THE SERIES 1991 BONDS" and "SECURITY FOR THE SERIES 1991 BONDS", is intended to provide information as to the general nature of the provisions of the Resolution and is not intended to be a complete summary of all provisions. This summary is qualified in its entirety by reference to the entire Resolution, copies of which may be inspected at the office of the County Attorney or the Clerk of the Board of County Commissioners of Indian River County. SUMMARY DEFINITIONS "Amortization Installment" with respect to any Term Bonds of a series, shall mean an amount or amounts so designated which is or are established for the Term Bonds of such series, provided that the aggregate of such Amortization Installments for each maturity of Term Bonds of such series shall equal the aggregate principal amount of each maturity of Term Bonds of such series delivered on original issuance. "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) direct obligations of or obligations unconditionally guaranteed by the United States of America; (2) time deposits represented by certificates of deposit fully secured in the manner provided by the laws of the State of Florida; (3) repurchase agreements between the Issuer and "qualified public depositories," as defined in Chapter 280, Florida Statutes, or between the Issuer and any government bond dealer recognized as a primary dealer by the Federal Reserve Bank of New York, in each case having a capital and surplus or net capital of $100,000,000, which agreements are fully secured by obligations described in (1) above that have been physically delivered to a third party agent and are held in the name of the Issuer; or (4) any other investments specified by Section 125.31, Florida Statutes. "Board" shall mean the Board of County Commissioners of Indian River County, Florida. "Bond Service Requirement" for any Bond Year, as applied to the Bonds of any series, shall mean the sum of (1) the amount required to pay the interest becoming due on the Bonds of such series during such Bond Year, (2) the amount required to pay the principal of Serial Bonds of such series maturing in such Bond Year, and (3) the Amortization Installment for the Term Bonds for such series for such Bond Year. The amount of the Bond Service Requirement for any Bond Year shall be reduced by the amount deposited into the Sinking Fund and/or the Bond Amortization Account, from legally available funds, for payment of the principal of, interest on and/or Amortization Installment for the Bonds. "Bond Year" shall mean the annual period ending on a principal maturity date or on an Amortization Installment due date for the Bonds. "Cost of Operation and Maintenance" of the Project shall mean the current expenses, paid or accrued, of operation, maintenance and repair of the Project, as calculated in accordance with sound accounting practice, but shall not include payments in lieu of taxes, any reserve for renewals and replacements, extraordinary repairs or any allowance for depreciation. "Federal Securities" shall mean, collectively, any of the following to the extent the same are sufficient for defeasance under state law (1) direct obligations of (including obligations issued or held in book entry form on the books of the Department of the Treasury of the United States of America), or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America; (2) bonds, debentures or notes or other evidence of indebtedness payable in cash issued by any one or a combination of any of the following federal agencies whose obligations represent the full faith and credit of the United States of America: Export Import Bank of the United States, Federal Financing Bank, Farmer's Home Administration, Federal Housing Administration, Maritime Administration, Public Housing Authority and Government National Mortgage Association; (3) certificates of deposit with commercial banks, savings and loan associations and mutual savings banks properly secured at all times by collateral security described in (1) and (2) above; and (4) the following investments fully insured by the Federal Deposit Insurance Corporation or the Federal Saving and Loan Insurance Corporation: (a) certificates of deposit, (b) savings accounts, (c) deposit accounts or (d) depository receipts of banks, savings and loan associations and mutual savings banks. C-2 "Fiscal Year of shall mean the period commencing on October 1 of each year and ending on the succeeding September 30. "Gross Revenues" shall mean all income or earnings derived from the operation of the Project; all proceeds of the sale, condemnation and/or insurance on the Project; and any income from the investment of the funds and accounts established in the Resolution to pay the principal of and interest on the Bonds. "Half -Cent Sales Tax" shall mean the portion of the local government half -cent sales tax on deposit from time to time in the Local Government Half -Cent Sales Tax Clearing Trust Fund in the State Treasury of Florida allocated for and distributed monthly to the Issuer pursuant to Chapter 218, Florida Statutes. "Issuer" shall mean Indian River County, Florida. "Net Revenues" shall mean the Gross Revenues, after deduction of the Cost of Operation and Maintenance. "1991 Project" shall mean the expansion of the Sandridge Golf Course including without limitation the acquisition, construction, furnishing and equipping of an additional eighteen hole public golf course and an expansion of the clubhouse facilities. "1991 Rebate Account" shall mean the account created under the Resolution into which income on investments attributable to the Series 1991 Bonds shall be deposited in an amount sufficient to pay to the United States all amounts due with respect to arbitrage rebate under Section 148(f) of the Internal Revenue Code of 1986, as amended, and applicable regulations, when due. "Pledged Funds" shall mean, collectively, the Net Revenues and the Racetrack and Jai Alai Fronton Funds. "Project" shall mean the existing properties and assets, real and personal, tangible and intangible, owned and/or operated by the Issuer, used or useful for a public golf course and related clubhouse facilities, and all properties and assets constructed or acquired as additions, improvements and extensions to said Project. "Racetrack and Jai Alai Fronton Funds" shall mean that portion of the racetrack funds and jai alai fronton funds accruing annually to the Issuer under Chapter 550 and 551, Florida Statutes, and allocated to the Board pursuant to law. "Record Date" shall mean the 15th day of the month immediately preceding an interest payment date for the Bonds. "Registered Owner" shall mean any person who shall be the C-3 owner of any outstanding Bond or Bonds as shown on the books of the Issuer maintained by the Bond Registrar. "Reserve Account Requirement" shall mean the amount required to be deposited in the Reserve Account for the Bonds as determined by resolution of the Board on or prior to the sale of the applicable series of Bonds. "Serial Bonds" shall mean any Bonds for the payment of the principal of which, at the maturity thereof, no fixed Amortization Installment or bond redemption deposits are required to be made prior to the 12 month period immediately preceding the stated date of maturity thereof. "Series 1991 Bonds" shall mean the Indian River County, Florida, Recreational Revenue Bonds, Series 1991, authorized to be issued under the Resolution. "Term Bonds" shall mean the Bonds of a series, all of which shall be stated to mature on one date and which shall be subject to retirement by operation of the Bond Amortization Account, created and established under the Resolution. SECURITY FOR BONDS The principal of and interest on the Bonds shall be secured forthwith equally and ratably by a first lien upon and a pledge of the Pledged Funds. The Issuer hereby irrevocably pledges such Pledged Funds to the payment of the principal, redemption premiums, if any, and interest on the Bonds. The Issuer also has created in the Resolution for the benefit of the Series 1991 Bonds and the Parity Bonds a lien upon and pledge of the Half -Cent Sales Tax junior and subordinate, however, to the pledge of and lien upon the Half -Cent Sales Tax for the benefit of bonds of the Issuer now outstanding and hereafter issued under Resolution No. 85-75 of the Issuer, as amended (the "Half -Cent Sales Tax Resolution"). If at any future time no bonds are outstanding under the Half -Cent Sales Tax Resolution and the Issuer covenants not to thereafter issue any bonds under the Half -Cent Sales Tax Resolution, the Bonds shall be secured thereafter by a pledge of and lien upon ).S'% of the Half -Cent Sales Tax. /c/? SERIES 1991 BONDS NOT GENERAL OBLIGATION OF ISSUER The Series 1991 Bonds shall not be or constitute general obligations or 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 first lien upon and a pledge of the Pledged Funds and a lien upon and pledge of the Half -Cent Sales Tax as described above. C-4 No Registered Owner shall ever have the right to compel the levy of ad valorem taxes to pay the Bonds or the interest thereon, or for the making of any other payments specified in the Resolution. COVENANTS OF ISSUER For as long as any of the principal of and interest on any of the Bonds shall be outstanding and unpaid or until there shall have been set apart in the Sinking Fund, established under the Resolution, including the Bond Amortization Account and the Reserve Account therein, a sum sufficient to pay when due the entire principal of the Bonds remaining unpaid, together with interest accrued or to accrue thereon, the Issuer covenants with the Registered Owners of any and all Bonds, among other things, as follows: 1. Racetrack Fund. The Racetrack and Jai Alai Fronton Funds shall, upon receipt thereof, be deposited in the "Racetrack Revenue Fund" (the "Racetrack Fund"), created and established under the Resolution. In each year when the amount on deposit in the Racetrack Fund, together with the amount then on deposit in the Sinking Fund (excluding the Reserve Account therein), equals the current Bond Service Requirement, no further deposits of Racetrack and Jai Alai Fronton Funds shall be required, and any funds on deposit in the Racetrack Fund in excess of the amount of the Racetrack and Jai Alai Fronton Funds which, together with the funds currently on deposit in the Sinking Fund (excluding the Reserve Account therein), equal the current Bond Service Requirement, shall be paid to the Issuer. Money on deposit in the Racetrack Fund shall, to the extent necessary, be used for the purpose of supplementing the Sinking Fund (excluding the Reserve Account therein) in order to prevent a default in the payment of the principal of and interest on the Bonds. 2. Revenue Fund. The Gross Revenues shall, upon receipt thereof, be deposited in the "Recreational Facilities Revenue Fund" (the "Revenue Fund"), created and established under the Resolution. 3. Disposition of Revenues. All revenues at any time remaining on deposit in the Revenue Fund shall be disposed of only in the following manner and in the following order of priority: (a) First, for deposit on or prior to the 15th day of each month, in the "Recreational Facilities Operation and Maintenance Fund" (the "Operation and Maintenance Fund"), which is created and established under the Resolution, such sums as are necessary for the Cost of Operation and Maintenance for the next ensuing month. C-5 (b) Second, for deposit into a separate fund which is created under the Resolution and designated "Recreational Revenue Bonds Sinking Fund" (the "Sinking Fund"), such sums as will be sufficient to pay all interest becoming due on the Bonds during the current Bond Year and all principal maturing on the Serial Bonds during the current Bond Year. All such payments, as provided above, shall include an amount sufficient to pay the fees and charges of the paying agents if not otherwise provided. (c) Third, on a parity with the payments into the Sinking Fund, from the money on deposit in the Revenue Fund, the Issuer shall next deposit into the "Bond Amortization Account" in the Sinking Fund, created and established under the Resolution, if and to the extent required, a sum equal to the amount of any annual Amortization Installment for Term Bonds which shall become due and payable during the current Bond Year. (d) Fourth, to maintain in the Reserve Account in the Sinking Fund, which Reserve Account is created and established under the Resolution, a sum equal to the Reserve Account Requirement on the Bonds. The Issuer shall deposit into the Reserve Account, on or prior to the 15th day of each month, 1/12 of 20% of the difference between the amount deposited into the Reserve Account from the proceeds of the sale of the Bonds and the Reserve Account Requirement, and no further deposits shall be required to be made into the Reserve Account as long as the amount on deposit therein (including any Reserve Account insurance policy or letter of credit as described below) shall be equal to the Reserve Account Requirement. The value of the Reserve Account, including investments on deposit therein, shall be determined annually on the first day of the Fiscal Year and any amount on deposit therein in excess of the Reserve Account Requirement shall, to the extent practicable, be paid to the Issuer. Any withdrawals from the Reserve Account shall be subsequently restored from the first money available in the Revenue Fund after all required current payments for the Sinking Fund, Bond Amortization Account, Operation and Maintenance Fund (including all deficiencies in prior payments to those funds and accounts) and Reserve Account have been made in full. Any excess funds in the Reserve Account shall be transferred to the Revenue Fund. Notwithstanding the foregoing provisions, in lieu of the required deposits into the Reserve Account, the Issuer may cause to be deposited into the Reserve Account a municipal bond insurance policy issued by a reputable and recognized municipal bond insurer with the highest rating from A. M. Best & Company, or a letter of credit from a bank or trust company whose letter of credit results in the rating of municipal obligations in one of the 3 highest categories of either Moody's Investors Service, Inc., or Standard & Poor's Corporation, for the benefit of the C-6 Registered Owners in an amount equal to the difference between the Reserve Account Requirement and the sums then on deposit in the Reserve Account, if any, which Reserve Account insurance policy or letter of credit shall be payable or available to be drawn upon, as the case may be (upon the giving of notice as required thereunder), on any Bond interest payment date on which a deficiency exists which cannot be cured by money in any other fund or account held pursuant to the Resolution and available for such purpose. If a disbursement is made under the Reserve Account insurance policy or letter of credit, the Issuer shall be obligated to either reinstate the maximum limits of such Reserve Account insurance policy or letter of credit immediately following such disbursement, to the Reserve Account Requirement, or to deposit into the Reserve Account from the Pledged Funds, funds in the amount of the disbursement made under such Reserve Account insurance policy or letter of credit, or a combination of such alternatives as shall equal the Reserve Account Requirement. Money in the Reserve Account shall be used only for the purpose of the payment of maturing principal of or interest on the Bonds and maturing Amortization Installments on Term Bonds, if any, when the other money in the Sinking Fund is insufficient therefor, and for no other purpose. The Issuer shall not be required to make any further payments into the Sinking Fund (including the Bond Amortization Account and the Reserve Account therein) when the aggregate amount of money in the Sinking Fund (including the Bond Amortization Account and the Reserve Account therein) are at least equal to the total Bond Service Requirement for all Bond Years of the Bonds then outstanding, plus the amount of redemption premium, if any, then due and thereafter to become due on such Bonds then outstanding by operation of the Bond Amortization Account. (e) Fifth, for deposit into a special fund to be known as the "Recreational Facilities Improvement Fund" (the "Improvement Fund"), which fund is created and established under the Resolution. The Issuer shall deposit into the Improvement Fund, on or prior to the 15th day of each month, an amount determined in the discretion of the County Administrator. The money in the Improvement Fund shall be used only for the purpose of paying the cost of extensions, enlargements or additions to, or the replacement of capital assets of, the Project, and emergency repairs thereto, or for the purchase or redemption of Bonds. Such money on deposit in the Improvement Fund shall also be used to supplement the Reserve Account, if necessary, in order to prevent a default in the payment of the principal of and interest on the Bonds. The money on deposit in the Improvement Fund shall be withdrawn only upon the authorization of the County Administrator of the Issuer. (f) Sixth, after the above required payments have been made, for any lawful purpose. C-7 The Revenue Fund, the Sinking Fund (including the Bond Amortization Account and the Reserve Account therein), the Operation and Maintenance Fund, the Improvement Fund and any other special funds and accounts established and created under the Resolution shall constitute trust funds for the purpose provided in the Resolution for such funds and accounts. The money in all such funds and accounts shall be continuously secured in the same manner as county deposits are authorized to be secured by the laws of the State of Florida. Money on deposit in the Revenue Fund, the Sinking Fund (excluding the Bond Amortization Account and the Reserve Account therein), the Bond Amortization Account and the Improvement Fund may be invested and reinvested in Authorized Investments which mature not later than the dates on which the money on deposit therein will be needed for the purposes of such funds and accounts. Money on deposit in the Reserve Account may be invested and reinvested only in investments described in Subsection 1 of the definition of "Authorized Investments" maturing not later than the last maturity of the Bonds. 4. Operation of Bond Amortization Account. Money held for the credit of the Bond Amortization Account shall be applied to the retirement of Term Bonds as follows: (a) Subject to the provisions of paragraph (c) below, the Issuer shall endeavor to purchase Term Bonds then outstanding, at the most advantageous price obtainable with reasonable diligence, such price not to exceed the principal of such Term Bonds and the redemption premium which would be applicable if the money applied to such purchase were otherwise applied to the redemption of Term Bonds under paragraphs (b) or (c) below. The Issuer shall pay the interest accrued on such Term Bonds to the date of delivery thereof from the Sinking Fund and the purchase price from the Bond Amortization Account, but no such purchase shall be made by the Issuer within the period of 45 days immediately preceding any interest payment date on which such Term Bonds are subject to call for redemption, except from money in excess of the amounts set aside or deposited for the redemption of Term Bonds. (b) Subject to the provisions of paragraph (c) below, the Issuer shall call for redemption on each interest payment date on which Term Bonds are subject to redemption from money in the Bond Amortization Account, such amount of Term Bonds then subject to redemption as will exhaust the money then held in the Bond Amortization Account as nearly as may be practicable. Prior to calling Term Bonds for redemption, the Issuer shall withdraw from the Sinking Fund and from the Bond Amortization Account and set aside in separate accounts for deposit with the paying agents the respective amounts required for paying the interest on the Term Bonds so called for redemption. C-8 (c) Money in the Bond Amortization Account shall be applied by the Issuer in each Bond Year to the retirement of Term Bonds then outstanding in the following order: (i) the Term Bonds of each series to the extent of the Amortization Installment, if any, for such Bond Year for the Term Bonds of each such series then outstanding and, if the amount available in such Bond Year shall not be sufficient therefor, then in proportion to the Amortization Installment, if any, for such Bond Year for the Term Bonds of each such series then outstanding; provided, however, that if the Term Bonds of any series shall not then be subject to redemption from money in the Bond Amortization Account and if the Issuer shall at any time be unable to exhaust the money applicable to the Term Bonds of such series under the provisions of this clause in the purchase of such Term Bonds under the provisions of paragraph (a) above, such money or the balance of such money, as the case may be, shall be retained in the Bond Amortization Account and, as soon as it is feasible, applied to the retirement of Term Bonds of such series; and (ii) any balance then remaining, other than money retained under the first clause of this paragraph, shall be applied to the retirement of such Bonds as the Issuer in its sole discretion shall determine, but only, in the case of the redemption of Bonds of any series, in such amounts and on such terms as may be provided in the resolution authorizing the issuance of the Bonds of such series. (d) The Issuer shall deposit into the Bond Amortization Account, Amortization Installments for the amortization of the principal of the Term Bonds, together with any deficiencies for prior required deposits, such Amortization Installments to be in such amounts and to be due in such years as shall be determined by resolution of the Board prior to the sale of the Bonds. The Issuer shall pay from the Sinking Fund all expenses in connection with any such purchase or redemption. 5. Operation and Maintenance. The Issuer will maintain the Project and all parts thereof in good condition and will operate the same in an efficient and economical manner, making such expenditures for equipment and for renewals, repairs and replacements as may be proper for the economical operation and maintenance thereof. 6. Rate Covenant. The Issuer will, to the extent practicable, fix, establish, revise from time to time whenever necessary, maintain and collect always such fees, rates, rentals and other charges for the use of the services of the Project which will always provide Gross Revenues in each year sufficient to pay, and C-9 out of such funds pay, 100% of all Costs of Operation and Maintenance in such year, all Bond Service Requirements becoming due in such year on the Outstanding Bonds and all reserve or other payments required in the Resolution. 7. Books and Accounts; Audit. The Issuer shall keep proper books, records and accounts, separate and apart from all other records and accounts, showing correct and complete entries of all transactions of the Project. The Registered Owners of any of the Bonds or any duly authorized agent or agents of such Registered Owners shall have the right at any and all reasonable times to inspect such books, records and accounts. The Issuer shall within 180 days following the close of each Fiscal Year, cause an audit of such books, records and accounts to be made by an independent firm of certified public accountants; however, such audit may be included in the annual audit of the operations of the Issuer. Copies of each such audit report shall be placed on file with the Issuer and be made available at reasonable times for inspection by Registered Owners. 8. No Mortgage or Sale of Project. The Issuer shall not sell, mortgage, lease or otherwise dispose of or encumber the properties of the Project; provided, however, that the Issuer from time to time (a) may sell, lease or otherwise dispose of all the properties comprising the Project if simultaneously with such sale or other disposition thereof, provision is made for the payment of cash and/or Federal Securities into the Sinking Fund, the principal of and interest on which is sufficient to pay the principal of, applicable redemption premium and interest on all Bonds then outstanding in full in accordance with the requirements of the Resolution; and (b) may sell, lease or otherwise dispose of any portion of the properties of the Project which shall have become unserviceable, inadequate, obsolete, worn out or unfit to be used in the operation of the Project or no longer necessary, material to, or useful in such operation. 9. Insurance. The Issuer shall carry insurance on the properties comprising the Project of the kinds, against such risks, accidents or casualties, and in at least the amounts, which are usually and customarily carried upon similar properties, including, without limiting the generality of the foregoing, fire, extended coverage and general liability, and also all additional insurance covering such risks as shall be deemed necessary or desirable by the Issuer; provided, however, that in lieu of carrying such insurance, the Issuer may self -insure to the extent customary with like properties. In the event of any loss or damage to the properties of the Project covered by insurance, the Issuer shall with respect to each such loss, promptly repair and reconstruct to the extent necessary for the proper conduct of the operations of the Project, the lost or damaged portion thereof, and shall apply the proceeds of any insurance policy or policies covering such loss or damage for C-10 11 that purpose to the extent required therefor, unless such repair and reconstruction is not necessary for the efficient operation of the Project. 10. No Impairment of Contract. The Issuer has full power and authority to irrevocably pledge the Pledged Funds to the payment of the principal of and interest on the Bonds. The pledge of such Pledged Funds, in the manner provided in the Resolution, shall not be subject to repeal, modification or impairment by any subsequent resolution or other proceedings of the Issuer or by any subsequent act of the Legislature of the State of Florida (the "Legislature") unless the Issuer shall have provided, or the Legislature shall have made immediately available to the Issuer, such additional or supplemental funds which shall be sufficient to retire such Bonds and the interest thereon in accordance with their terms. The Issuer shall take all actions and pursue such legal remedies which may be available to it either in law or in equity to prevent or cure any default or impairment as within the meaning of this paragraph. 11. No Free Use. So long as any Bonds are outstanding, the Issuer shall not furnish or supply the facilities and services of the Project free of charge to any person, firm or corporation, public or private. 12. Preserve Tax -Exemption of Bonds. The Issuer will make no use of proceeds of the Series 1991 Bonds that will cause them to be or to become "arbitrage bonds" within the meaning of the Code, as amended, and applicable regulations, and to comply with all other requirements of such Code if and to the extent applicable to maintain continuously the Federal income tax exemption of interest on the Series 1991 Bonds. 1991 CONSTRUCTION FUND All of the proceeds derived from the sale of the Bonds (except (a) an amount equal to accrued and capitalized interest, if any, on the Bonds to be deposited in the Sinking Fund, (b) an amount equal to all or a portion of the Reserve Account Requirement to be deposited in the Reserve Account and (c) an amount necessary to pay costs of issuance of the Series 1991 Bonds and related costs), shall be deposited in a trust fund which is created and established under the Resolution and designated as the "Recreational Revenue Bonds, Series 1991 Facilities Construction Fund" (the "Construction Fund"). The money therein shall be used only for the payment of the cost of the Project, but, pending such application, may be invested in Authorized Investments maturing at such time or times as necessary to meet the requirements of the Construction Fund, the income from such investments (other than amounts representing rebatable arbitrage to be deposited into the 1991 Rebate Account) to remain in the Construction Fund pending completion of the Project. Any balance of unexpended C-11 11 money in the Construction Fund after completion of the Project shall be deposited in the Revenue Fund. DEFEASANCE If, at any time, the Issuer shall have paid, or shall have made provision for payment of, the principal, interest and redemption premiums, if any, with respect to any of the Bonds, then, and in that event, the pledge of and lien on the Pledged Funds in favor of the Registered Owners of such Bonds shall be no longer in effect. For purposes of the preceding sentence, the deposit of Federal Securities in irrevocable trust with a banking institution or trust company, for the sole benefit of the Registered Owners of such Bonds, in an amount such that the principal of and interest on such Federal Securities will be sufficient to pay when due the principal, interest and redemption premiums, if any, on such outstanding Bonds, shall be considered "provision for payment." For the purposes of this Section, amounts paid under a municipal bond insurance policy shall not be deemed paid pursuant to this Section, and shall continue to be due and owing until paid by the Issuer in accordance with this resolution. Nothing in the Resolution shall be deemed to require the Issuer to call any of such outstanding Bonds for redemption prior to maturity pursuant to any applicable optional redemption provisions, or to impair the discretion of the Issuer in determining whether to exercise any such option for early redemption. MODIFICATION OR AMENDMENT No material modification or amendment of the Resolution or of any resolution amendatory thereof or supplemental thereto, may be made without the consent in writing of the Registered Owners of 51% or more in aggregate principal amount of the Bonds then outstanding, or the Registered Owners of all the Bonds to be affected by such modification or amendment; provided, however, that no modification or amendment shall permit a change in the maturity of such Bonds or a reduction in the rate of interest thereon or in the amount of the principal obligation, or affect the unconditional promise of the Issuer to pay the principal of and interest on the Bonds as the same shall come due from the Pledged Funds, or reduce the percentage of the Registered Owners of the Bonds required to consent to any material modification or amendment hereof, without the consent in writing of the Registered Owners of all such Bonds. For the purpose of this Section, to the extent any Bonds are insured by a municipal bond insurance policy, and the insurer is not then in default under such policy or is not then bankrupt, insolvent or in receivership, such insurer shall be deemed to be the Registered Owner of any Bonds so insured (a) at all times for the purpose of giving any approval or consent to the execution and delivery of any supplemental or amendatory resolution which C-12 under the Resolution requires the written approval or consent of the Registered Owners of not less than 60% in aggregate principal amount of the Bonds outstanding, and (b) following a default in the payment, when due, of principal, redemption premium, if any, and/or interest on the Bonds. 11 Appendix D Specimen Municipal Bond Insurance Policy MOM .roawTY COMPOOIATIOM IMO: Bonds: APPENDIX D Municipal Bond Insurance Policy c212°2C; C13(wl 53705 Mdnwi native Omoe: One State Street Plaza, New lbtk, NY 10004 Policy Number: Premium: AMBAC Indemnity Corporation (Al B ) AWisconsin Stock Insurance Company in consideration of the payment of the premium and subu.ct to the terms of this Policy.• hereby agrees to pay to the United States Trust Company of New York. as trustee, or its successor (the "Insurance Trustee), for the benefit of Bondholders, that portion of the principal of and interest on the above•described debt obligauons (the "B ") which shall become Due for Payment but shall be unpaid by reason of Nonpayment by the Issuer AMBAC will make such payments to the Insurance Trustee within 5 days Collo AMBAC of Nonpayment. Upon a Bondholder's presentation and surrender to the Insurance Truste sit u •aid r appurtenant coupons, uncanceled and in bearer form and free of any adverse claim,the Inst n Tr t w d' urse the Bondholder the face amount of principal and interest which is then Due for Payment b a • a . U • u • • d tae nt, AMBAC shall become the owner of the surrendered Bonds and coupons and shall sub • t • of e • er's rights to payment. In cases where the Bonds are tssuahle only in a form w•• •v pro al is ra a t• a Bondholders or their assigns. the Insurance Trustee shall disburse principal to a : dh d as afo s o v • •on pr nuuon and surrender to the Insurance Trustee of the unpaid Bond. uncance v •ers lai , t• er with an instrument of assignment. in form satisfactory to the Insurance Trust • my e. c •d • t ho.r such Bondholder's duly authorized representauve. so as to permit owners p • sit t• he i re ame of AMBAC or its nominee. In cases where the Bonds are issuable only k egtstered Bondholders or their assigns, the Insurance Trustee shall disburse i er . to a n • is or . i th• upon presentation to the Insurance Trustee of proof that the claimant is t • o en t • he me rest on the Bond and delivery to the Insurance Trustee of an instrument of ass m t, i o sa ct. t e 1 urance Truster. duly executed by the claimant Bondholder or such Bondholder's • lv th ed se stye, ansf• ing to A.%1B.S all rights under such Bond to receive the interest in respect of th i d' u m as de. AMBAC shall be Subrogated to all of the Bondholders rights to payment on is y • • s c th x[e of tt• surance disbursements so made As used herei the • ho • er" me any person other than the Issuer who. at the time of Nonpayment, is the owner of a Bond oro • • n a • • win to a Bond. "Due for Payment'; when referring to the principal of Bonds, is when the stated maturity date • an t • . dempuon date for the applicauon of a required sinking fund installment has been reached and does • t r to ny earlier date on which payment is due by reason of call for redemption (other than by application of requir . • si g fund installments), accelerauon or other advancement of maturity; and, when referring to interest on the Bonds, hen the stated date for payment of interest has been reached. "Nonpayment' means the failure of the Issuer to have provided sufficient funds to the paving agent for payment in full of all principal of and interest on the Bonds which are Due for Payment. This Policy is noncancelable. The premium on this Policy is not refundable for any reason. including payment of the Bonds prior to maturity. This Policy does not insure against loss of any redempuon. prepayment or accelerauon premium which at any ume may become due in respect of any Bond, nor against risk other than Nonpayment. In witness whereof, AMBAC has caused this Policy to be affixed with a facsimile of its corporate seal and to be signed by its duly authorized officers in facsimile to become effective as its original seal and signatures and binding upon AMBAC by virtue of the countersignature of its duly authorized representative. • t 0 UNITED SIMS TRUST COMPANY OF NEW YORK acknowledges that it has agreed to perform the duties of Insurance Trustee under this fblicv tu•i a w..,. u1 ., •.\, .4*y/a 64 Secretary Authorized Plepresentauve II Appendix E Form of Opinion of Bond Counsel APPENDIX E IR 0ADM & SINON ATTORNEYS AT LAW BOCA RATON. FLORIDA 33432 Sulrc 301 299 WCsT CAMINO GAROCNS eOUICVARO TCLtRHONC (407) 395.5595 TcutCORIce (4b7) 395.9497 rii.c No. Re: Indian River County, Florida $ Aggregate Principal Amount of Recreational Revenue Bonds, Series 1991 Dated as of , 1991 OPINION We have acted as Bond Counsel in connection with the authorization, sale, issuance and delivery of the Recreational Revenue Bonds, Series 1991, dated as of , 1991, in the aggregate principal amount of $ (the "Series 1991 Bonds"), of Indian River County, Florida (the "County"). The Series 1991 Bonds are issued as Additional Parity Obligations under the Resolution hereinafter defined. Recreational Revenue Bonds, Series 1985, dated as of April 1, 1986, in the aggregate principal amount of $2,720,000. (the "Series 1985 Bonds"), of the County have been issued and are currently outstanding. The Series 1985 Bonds, the Series 1991 Bonds and any Additional Parity Obligations hereafter issued under the Resolution are herein referred to as the "Bonds". The Series 1991 Bonds are issued pursuant to the Constitution and laws of the State of Florida, particularly Chapter 125, Florida Statutes (1990), as amended, Ordinance No. 77-19, duly enacted by the Board of County Commissioners of the County (the "Board") on August 3, 1977, as amended (the "Ordinance"), and Resolution No. 85-78, duly adopted by the Board on July 17, 1985, as amended and supplemented, including without limitation the amendments and supplements made by Resolution No. 91-70, duly adopted by the Board on June 18, 1991, as amended and supplemented (collectively the "Resolution"), and other applicable provisions of law. Under the Resolution, C&S/Sovran Trust Company (Florida), N.A., Fort Lauderdale, Florida (the "Paying Agent"), has been appointed as paying agent and registrar for the Series 1991 Bonds. The County, pursuant to power and authority vested in it by law, will acquire, construct, furnish and equip an expansion of the Sandridge Golf Course owned by the County, including without limitation an additional eighteen hole public golf course and an expansion of the clubhouse facilities (the "1991 Project"). The Resolution provides, inter alio, that the proceeds of the Series 1991 Bonds are to be used for and towards: (i) the payment of costs and expenses of the 1991 Project; (ii) a deposit into the reserve account created and established under the Resolution for the Bonds; and (iii) the payment of all costs and expenses of issuance of the Series 1991 Bonds, all as more fully provided in the Resolution. The Resolution also contains covenants of the County to comply with provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and applicable regulations promulgated thereunder inter alis, to preserve the Federal income tax exemption of the interest on the Series 1991 Bonds. The principal of, interest and premium, if any, on the Bonds are payable from and secured by a first lien on and pledge of the Pledged Funds, as 2 defined in the Resolution, which include the Net Revenues, as defined in the Resolution, from the operation of the Sandridge Golf Course and the Racetrack Funds and Jai Alai Fronton Funds, as defined in the Resolution, received by the County, all as more fully provided in the Resolution. The principal of, interest and premium, if any, on the Series 1985 Bonds and the Series 1991 Bonds are further payable from and secured by a lien on and pledge of the Sales Tax, as defined in Resolution No. 85-75 of the County, as amended (the "Half-Cent Sales Tax"), all as more fully and to the extent provided in the Resolution. The Series 1991 Bonds shall not constitute a general obligation or indebtedness of the County and the Registered Owners thereof shall never have the right to require or compel the exercise of the power of the County to levy ad valorem taxes for the payment of the principal of, interest or premium, if any, on the Series 1991 Bonds. As Bond Counsel, we have examined, among other things: certified copies of certain proceedings of the Board with respect to the Series 1991 Bonds and other proofs submitted to us which are relevant to the authorization, sale, issuance and delivery of the Series 1991 Bonds; certified copies of the Ordinance and the Resolution; a certificate of no litigation; a non-arbitrage certificate of the County; a rebate compliance certificate of the County; and usual and required closing affidavits, certificates and documents. We also have examined a specimen of the Series 1991 Bonds executed in the manner required by the Resolution, and assume that, as required by the Resolution, all of the Series 1991 Bonds have been similarly executed, will be issued in registered form and will be authenticated by the Paying Agent, acting as bond registrar. As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials furnished 3 to us without undertaking to verify such facts by independent investigation. Based on our examination and assuming investment and application of the proceeds of the Series 1991 Bonds as set forth in the aforementioned non - arbitrage certificate and rebate compliance certificate, assuming that the Series 1991 Bonds will remain in registered form as required by the Resolution, and assuming continuing compliance by the County with the aforementioned covenants pertaining to the Code, we are of the opinion that: 1. The County is a political subdivision of the State of Florida and has the power to issue the Series 1991 Bonds and to acquire, construct, furnish, equip, own, operate and maintain the 1991 Project. 2. The Ordinance and the Resolution have been duly enacted and adopted, respectively, by the County and are valid and enforceable instruments. 3. The County is legally obligated to collect, receive, hold and apply the Pledged Funds and the Half -Cent Sales Tax in accordance with the provisions of the Resolution. 4. The Series 1991 Bonds are valid and legally binding special obligations of the County and are payable from and secured by a lien upon and pledge of the Pledged Funds and the Sales Tax, as and to the extent provided in the Resolution. 5. The Series 1991 Bonds and the income therefrom are exempt from taxation under the laws of the State of Florida, except estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations, banks and savings associations. 6. The Series 1991 Bonds are not presently "arbitrage bonds" as described in Section 103(b)(2) and Section 148 of the Code and applicable regulations promulgated thereunder. 4 7. Interest on the Series 1991 Bonds (including any original issue discount properly allocable to the holder thereof) is excluded from gross income for purposes of federal income taxation and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations under present statutes, regulations and judicial decisions; although it should be noted that in the case of corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current earnings for purposes of such alternative minimum tax. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. It is to be understood that the rights of the holders of the Series 1991 Bonds and the enforceability of the Series 1991 Bonds and of the Resolution may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted and that their enforcement may be subject to the exercise of judicial discretion in accordance with general principles of equity. Very truly yours, RHOADS & SINON By: Charles L. Sieck 5 FILtut Q to gia;1.. 00. $-13 NEGOTIATED SALE DISCLOSURE STATEMENT July 23, 1991 Indian River County Board of County Commissioners Vero Beach, Florida In connection with the proposed issue by the Board of County Commissioners of Indian River County, Florida (the "Issuer") of $6,015,000 aggregate principal amount of its Recreational Revenue Bonds, Series 1991 (the "Bonds"), William R. Hough & Co. (the "Underwriter") has offered to underwrite a public offering of the Bonds. Arrangements for underwriting the Bonds will include a Bond Purchase Agreement between the Issuer and the Underwriter, which will embody the negotiations in respect thereof. The purpose of this letter is to furnish, pursuant to the provisions of Section 218.385(4), Florida Statutes, as amended, certain information with respect to the arrangements contemplated for the underwriting of the Bonds as follows: 1. The nature and estimated amounts of expenses to be incurred by the Underwriter in connection with the purchase and reoffering of the Bonds are set forth under "Expenses" in Schedule "A" attached hereto. 2. No person has entered into an underwriting with the Underwriter, or, to the knowledge of the Underwriter, with the Issuer, for any paid or promised compensation or valuable consideration, directly or indirectly, expressly or implied, to act solely as an intermediary between the Issuer and the Underwriter or to exercise or attempt to exercise any influence to effect any transaction in the purchase of the Bonds. 3. The underwriting spread (i.e., the difference between the price at which the Bonds will be initially offered to the public by the Underwriter and the price to be paid to the Issuer for the Bonds, exclusive of accrued interest in both cases), less original issue discount of $65,665.95 will be $72,180.00. 4. The estimated underwriting fee spread set forth in paragraph "3" above includes a management fee of $12,030. 5. No other fee, bonus or other compensation is estimated to be paid by the Underwriter in connection with the issuance of the Bonds to any person not regularly employed or retained by the Underwriter (including any "finder" as defined in Section 218.386(1), Florida Statutes, as amended), except as specifically enumerated as expenses to be incurred by the Underwriter as set forth in paragraph "1" above. 6. There are no other firms serving as underwriters in connection with the issuance of the Bonds. 7. The Underwriter is William R. Hough & Co., 100 Second Avenue South, Suite 800, St. Petersburg, Florida 33701. There are no other managing underwriters. We understand that you do not require any further disclosure from the Underwriter pursuant to Section 218.385(4), Florida Statutes. Very truly yours, WILLIAM R. HOUGH & CO. By: 2 -t - Title: F'/WI £ SCHEDULE "A" Per $1,000 $ Amount Takedown $7.14 $ 42,947.10 Risk 0 0 Management Fee 2.00 12,030.00 Expenses 2.86 17.202.90 Total: $12.00 BREAKDOWN OF EXPENSES Underwriter's Counsel $2.00 MSRB, CUSIP 0.08 Clearance 0.25 Fed Funds 0.19 Travel & Out -of -Pocket 0.34 Total Expenses: $ 72,180.00 $ 12,030.00 481.20 1,503.75 1,142.85 2,045.10 $2.86 $ 17,202.90