HomeMy WebLinkAbout1991-151INDIAN RIVER COUNTY, FLORIDA
RESOLUTION NO. 91 - 151
A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF
A BOND PURCHASE AGREEMENT FOR THE SALE AND AWARD OF
$9,205,000 AGGREGATE PRINCIPAL AMOUNT OF WATER AND SEWER
REVENUE BONDS, SERIES 1991, OF INDIAN RIVER COUNTY,
FLORIDA, AT PRIVATE SALE BY NEGOTIATION, TO THE
PURCHASERS THEREOF; AUTHORIZING AND APPROVING CERTAIN
TERMS OF SAID BONDS; RATIFYING THE DISTRIBUTION OF A
PRELIMINARY OFFICIAL STATEMENT; AUTHORIZING THE
EXECUTION AND DISTRIBUTION OF AN OFFICIAL STATEMENT IN
CONNECTION WITH THE MARKETING OF SAID BONDS; AUTHORIZING
OTHER APPROPRIATE AND NECESSARY ACTIONS IN CONNECTION
WITH THE ISSUANCE AND DELIVERY OF SAID BONDS; APPOINTING
A PAYING AGENT AND BOND REGISTRAR FOR SAID BONDS; AND
SPECIFYING AN EFFECTIVE DATE HEREOF.
WHEREAS, the Board of County Commissioners of Indian River County,
Florida (the "Board" and the "County", respectively), by Resolution No. 91-81,
duly adopted on July 23, 1991, heretofore authorized the issuance of Water and
Sewer Revenue Bonds, Series 1991, of the County in an aggregate principal amount
not to exceed $11,175,000 (the "Bonds"); and
WHEREAS, the County deems it to be in its long term best interest
that the Bonds be sold at this time at private sale by negotiation; and
WHEREAS, it is necessary and appropriate to authorize and approve
certain terms and provisions with respect to the Bonds and the sale thereof; and
WHEREAS, the County desires to appoint a Paying Agent and Bond
Registrar for the Bonds, to ratify the distribution of a Preliminary Official
Statement, to authorize the execution and distribution of an Official Statement,
and to authorize and direct the making of certain deposits from the proceeds of
sale of the Bonds; and
WHEREAS, Raymond James & Associates, Inc. (the "Purchasers"), have
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
$9,205,000 shall be dated as of October 1, 1991, shall in fully registered form,
shall be in denominations of $5,000 or any integral multiple thereof, shall
mature in the principal amounts and on the dates set forth in the Bond Purchase
Agreement hereinafter approved, shall bear interest, at the applicable rate for
each maturity as set forth in such Bond Purchase Agreement, payable semiannually
on May 1 and November 1 of each year, commencing May 1, 1992, until the principal
amount thereof is paid, by check mailed by the Paying Agent to the Registered
Owners whose names and addresses 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 next preceding
each applicable interest payment date (the "Record Date"), and shall be subject
to optional redemption and mandatory sinking fund redemption as set forth in such
Bond Purchase Agreement. Upon written request of the Registered Owner of Bonds
in an aggregate principal amount of $1,000,000' or more as of a Record Date,
payment of interest on the interest payment date will be made to such Registered
Owner by wire transfer of funds pursuant to the written directions of the
Registered Owner, provided that such written instructions are on file with the
Paying Agent not later than the twentieth (20th) day of the month preceding the
interest payment date.
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SECTION 2. First Union National Bank of Florida, Jacksonville,
Florida, is hereby appointed Paying Agent and Bond Registrar for the Bonds.
SECTION 3. The Bonds are hereby awarded and sold to the Purchasers
at a total price of $8,970,578.40 plus accrued interest from October 1, 1991, to
the date of delivery thereof. The Bond Purchase Agreement, dated September 24,
1991, by and between the Purchasers 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. The Preliminary Official Statement with respect to the
Bonds, in the form attached hereto as Exhibit "B" (the "Preliminary Official
Statement"), is hereby approved and ratified by the County, and the County hereby
approves and ratifies the use by the Purchasers 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 Purchasers for use by them
in connection with 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 5. The proper officers of the County are hereby authorized
and directed to execute the Bonds, when prepared, by manual or facsimile
signatures, and to deliver the same to the Purchasers upon payment of the
purchase price without further authority from the Board. The Chairman or Vice -
Chairman and the Clerk of the Board and the proper officers of the County are
hereby authorized to act for the County in connection 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 6. 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 7. 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 "C".
SECTION 8. The proper officers of the County are hereby authorized
and directed to execute and deliver on behalf of the County appropriate
certifications and returns 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 certifications and returns and
are authorized and empowered, collectively or individually, to take all such
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other and further action and steps as may be necessary or appropriate to execute
and deliver the same.
SECTION 9. The retirement of the Series 1988 Notes, as defined in
Resolution No. 91-81, is hereby authorized, and at the time of issuance and
delivery of the Bonds a sufficient amount of the proceeds of the Bonds, together
with other legally available funds of the County in the amount of $800,000, shall
be deposited into the Notes Payment Account established under Resolution No. 88-
120 of the County to effect retirement of such Series 1988 Notes, giving effect
to other funds therein available for the purpose and investment earnings thereon.
Such deposit into the Series of 1988 Notes Payment Account shall be irrevocable
to the extent that funds in the Series of 1988 Notes Payment Account and•the
interest earnings thereon are required to pay the principal of and interest on
the outstanding Series of 1988 Notes at maturity thereof on December 1, 1991.
The Chairman, the Vice Chairman and the Clerk of the Board and other 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 the retirement of such Series 1988 Notes, including without limitation to
execute and deliver any and all documents and instruments on behalf of the
County.
SECTION 10. There shall be deposited into the Reserve Account within
the Sinking Fund established under Resolution No. 89-19 of the County, as amended
and supplemented, from proceeds of the Bonds, at the time of issuance and
delivery thereof, the sum of $776,925, to be held, invested and applied for the
purposes of such Reserve Account.
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SECTION 11. There shall be deposited into the 1991 Sinking Fund
established under Resolution No. 91-81 of the County, as amended and
supplemented, from the proceeds of the Bonds, all accrued interest on the Bonds
plus the sum of $461,348.91 which together with the interest to be earned
thereon, shall be applied to payment of a portion of interest on the Bonds first
becoming due and payable, as more fully described in the Bond Purchase Agreement
herein approved.
SECTION 12. This Resolution shall take effect immediately upon its
adoption.
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
Aye
Aye
Ay
Ay
Aye
The Chairman thereupon declared the Resolution duly passed and
adopted this 24 day of September , 1991.
• `a 1(06.
a`Attest
e. ^ ,rey K. Barton
_ 9 v
.APp ytt 44,TO FORM
LEGAL SUFFI4ENCY
At
Clerk
toOr4(11‘e-bi--
Charles P. Vitunac
Attorney for the County
BOARD OF COUNTY COMMISSIONERS
OF INDIAN RIVER COUNTY, FLORIDA
By: er
Chairman
q
E,fl+,Bsr
BOND PURCHASE AGREEMENT
$ 2oS'�Od
Indian River County, Florida
Water and Sewer Revenue Bonds,
Series 1991
September 2y , 1991
Indian River County, Florida
1840 25th Street
Vero Beach, Florida 32960
Ladies and Gentleman:
The undersigned (the "Underwriter") offers to enter into the
following agreement (the "Agreement") with Indian River County,
Florida (the "Issuer"), which, upon the written acceptance of
this offer by the Issuer, will be binding upon the Issuer and the
Underwriter. This offer is made subject to the Issuer's written
acceptance by execution of this Agreement and its delivery of
same on or before 5:00 p.m., Eastern Standard Time, today. This
Bond Purchase Agreement is hereinafter referred to as the
"Agreement."
Section 1. Upon the terms and conditions and upon the
basis of the representations, warranties and covenants set forth
herein, the Underwriter agrees to purchase from the Issuer for
offering to the public, and the Issuer agrees to sell to the
Underwriter for such purpose, all (but not less than all) of the
$ 9.7yr oOo aggregate principal amount of the Issuer's Water and
Sewer Revenue Bonds, Series 1991 (the "Series 1991 Bonds"). The
Series 1991 Bonds shall be dated, mature and bear interest at the
rate and be subject to redemption as set forth in the Official
Statement referred to below. The purchase price of the Series
1991 Bonds shall ba $39?a, S1 a, `t0 (representing an original
issue discount of $ llti -5,40 and an aggregate discount
from the initial publid6offering prices of $ tVi G 4r.o" ) plus
accrued interest (calculated on the basis of a 60- ay year
comprised of twelve 30 -day months) on the Series 1991 Bonds from
October 1, 1991 to the date of delivery of the Series 1991 Bonds
pursuant to this Agreement (with such payment and delivery
collectively referred to as the "Closing"). The Official
Statement of the Issuer dated the date of this Agreement and
relating to the series 1991 Bonds, together with the cover page,
and all appendices as attached thereto, and with only such
changes, amendments and supplements as shall be approved by the
Issuer and the Underwriter prior to the Closing, is hereinafter
called the "Official Statemont." Such document in the form
distributed on September 17, 1991 is hereinafter called the
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"Preliminary Official Statement." The Series 1991 Bonds are
being issued pursuant to the authority of the Constitution and
laws of the State of Florida, including Chapters 125 and 159,
Florida Statutes, and other applicable provisions of law (the
"Act")
The terms and provisions of the Series 1991 Bonds shall be
as described in, and the Series 1991 Bonds shall be issued and
secured under and pursuant to, Indian River County Resolution No.
89.19, as amended and supplemented including amendments and
supplements made by Resolution No. 91-81, adopted by the County
on July 23, 1991, as the same may be amended and supplemented
(the "Resolution"), substantially in the form heretofore
delivered to us, with only such changes therein as shall be
mutually agreed upon between us. The Underwriter agrees to make
a bona fide public offering of the series 1991 Bonds not in
excess of the initial public offering prices (which may be
expressed in terms of yield) set forth on the cover page of the
Official Statement. The Series 1991 Bonds may be offered and
sold to certain dealers (including the Underwriter and other
dealers depositing such Series 1991 Bonds into investment trusts)
at a price or prices lower than such public offering prices.
Section 2. The Underwriter represents and warrants that
it is and has been authorized to execute this Agreement as
Underwriter. The payment for, acceptance of,and delivery and
execution on behalf of the Underwriter of any receipt for the
Series 1991 Bonds and any other instruments upon or in connection
with the Closing by the Underwriter shall be valid and sufficient
for all purposes and binding upon the Underwriter.
aectj.on 3. There is herewith delivered to you a
certified or official bank check, to the order of the Issuer in
the amount of $100,000 (the "Good Faith Deposit"), as a good
faith deposit for the performance of the Underwriter of its
obligations to accept and pay for the Series 1991 Bonds at the
Closing in accordance with the terms and provisions of this
Agreement. In the event that the Issuer does not accept this
offer, the Good Faith Deposit shall be immediately returned to
the Underwriter. If this offer is accepted, the Issuer shall
hold the Good Faith Deposit uninvested until the Closing and
dispose of such Good Faith Deposit as follows:
(a) At the Closing and upon the delivery of the Series
1991 Bonds and payment of they purchase price therefor, the
Good Faith Deposit shall be forthwith returned to the
Underwriter;
(b) In the event the Issuer shall fail to deliver the
Series 1991 Bonds to the Underwriter on the Cloning Date
(hereinafter defined) or if the Issuer Mie].l be unable at or
prior to the Closing Date to satisfy the Conditions to the
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obligations of the Underwriter contained herein, or if the
obligations of the Underwriter shall be terminated for any
reason permitted hereby, the Good Faith Deposit shall
forthwith be returned to the Underwriter by the Issuer; and
(c) If the Underwriter shall fail (other than for a
reason permitted hereby) to accept and pay for the Series
1991 Bonds upon tender thereof by the Issuer as provided
herein, the Good Faith Deposit shall be retained by the
Issuer as and for full liquidated damages for such failure
and for and all such defaults.
Section 4. You shall deliver or cause to be delivered to
the Underwriter promptly after your acceptance hereof (a) two
copies of the Resolution, certified by the Chairman or Vice
Chairman of the Board of County Commissioners of the Issuer, and
(b) two executed copies of the Official Statement signed by the
Chairman of the Board of. Commissioners of the Issuer and the
County Administrator of the Issuer. You authorize the use of
copies of the Official Statement and the Resolution in connection
with the public offering and sale of the Series 1991 Bonds. You
ratify the use by the Underwriter, prior to the date hereof, of
the Preliminary Official Statement in connection with the public
offering of the Series 1991 Bonds. Definitions of terms in the
Official Statement and the Resolution shall apply to this
Agreement unless the terms are otherwise defined herein.'
After the Closing and during the shorter of (1) the period
during which the Underwriter is offering the Series 1991 Bonds
that constitute the whole or part of its unsold participation or
(2) the period ending 90 days after the Closing, the Issuer will
prepare forthwith and furnish to the Underwriter a reasonable
number of copies of any amendment of or supplement to the
Official Statement (in form and substance satisfactory to the
Underwriter) which is necessary, because of the occurrence of an
event relating to or affecting the Issuer or the issuance of the
Series 1991 Bonds orthe application of the proceeds thereof, in
order that the Official Statement will not contain an untrue
statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light
of the circumstances existing at the time the Official Statement
is delivered to a purchaser, not misleading. The Issuer promptly
will notify the Underwriter of the occurrence of any event that,
in its opinion, requires an amendment or supplement to the
Official Statement.
Section 5. The Issuer represents, warrants and agrees
with the Underwriter as follows:
(a) Both at the time of acceptance of this offer by
the Issuer and at the date, of Closing, the statements and
information contained in the Preliminary Official Statement
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(except as changed by the Official Statement) and in the
Official Statement (except for information furnished to the
Issuer by the Underwriter or by others as specifically
indicated in the Official Statement) are and will be true,
correct and complete in all material respects and the
Official Statement does not and will not omit any statement
or information therein, in the light of the circumstances
under which they were made, not misleading in any material
respect;
(b) The Issuer is and will be at the date of Closing,
a duly organized and existing County under the laws of the
State of Florida (the "State");
(c) In accordance with the Act, (i) the Issuer has
full legal right, power and authority (1) to approve and
deliver the Preliminary Official Statement and to enter
into, execute 'and deliver this Agreement, the Resolution and
the Official Statement, (2) to sell, issue and deliver the
Series 1991 Bonds to the Underwriter as provided herein, and
(3) to carry out and consummate the transactions
contemplated by this Agreement, the Resolution, and the
Official Statement; and (ii) the Issuer has complied with,
and will at the Closing be in compliance in all respects
with, the terms of the Act and the Resolution and with the
obligations on its part contained in the Resolution,' the
Series 1991 Bonds and this Agreement;
(d) When delivered to and paid for by the Underwriter
at the Closing in accordance with the provisions of this
Agreement, the Series 1991 Bonds will have been duly
authorized, executed, issued and delivered and will
constitute valid obligations of the Issuer, in conformity
with, and entitled to the benefit and security of, the Act
and the Resolution;
(e) The adoption of the Resolution and the
authorization, execution and delivery of this Agreement, as
described in the Official statement, and compliance with the
rovisions thereof under the circumstances contemplated
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ereby, will not in any material respect conflict with or
constitute on the part of the Issuer a breach of or default
under any agreement or other .instrument to which the Issuer
is a party (including, without limitation, other resolutions
adopted by the Issuer and after the consent and approval of
Farmers Home Administration, United States Department of
Agrzculture ("FmHA") has been obtained, any loan agreement
or similar documents between the Issuer and FmlUA) or any
existing law, ordinance, administrative regulation, court
order or consent decree to which the Issuer is subject;
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(f) The Issuer will furnish such information, execute
such instruments and take t;uch other action in cooperation
with the Underwriter as the Underwriter may reasonably
request in order (i) to qualify the Series 1991 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 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 any jurisdiction
where it is not now so subject or qualified; and (ii) to
determine the eligibility of the Series 1991 Bonds for
investment under the laws of such states and other
jurisdictions and will use its best efforts to continue such
qualifications in effect so long as required for the
distribution of the Series 1991 Bonds;
(q) Between the date of this Agreement and the time of
Closing, the Issuer will not, without the prior written
consent of the Underwriter which consent shall not be
unreasonably withheld, offer or issue any bonds, notes or
other obligations for borrowed money or incur any material
liabilities as may be described in the Official Statement,
nor will there by any adverse change of a material nature in
ethe financial position, results of operations or conditions,
"financial or otherwise, of the Issuer other than (i) as
contemplated by and described in the Official Statement or
(ii) in the ordinary course of business;
(h) There is no action, suit, proceeding, inquiry or
investigation of any nature at law or in equity, before or
by any court, governmental agency, public board or body
pending or, to the knowledge of the Issuer, threatened,
seeking to restrain or enjoin the issuance, sale, execution
or delivery of the Series 1991 Bonds car the performance of
any of the covenants contained in this Agreement or the
Resolution or in any way questioning or affecting (i) the
transactions contemplated by this Agreement, the Resolution,
or the Official Statement, (ii) the right or authority of
the Issuer to pay the Series 1991 Bonds or to carry out the
terms and provisions of this Agreement and the Resolution,
or (iii) the validity of the Series 1991 Bonds or any
provision made for the payment of principal of, premium, if
any, or interest on the Series 1991 Bonds or the power of
the Issuer to perform its obligations under this Agreement
and the Resolution; and neither the existence of the Issuer
nor the titles of the Chairman or any of the other members
of the Board of County Cot►uniesionors (the "Board") , to their
respective offices nor the titles of the officers of the
Issuer to their respective offices are being contested, and
no authority or proceeding for the issuance of the Series
1991 Bonds has been repealed, revoked or rescinded;
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(i) As of the date of this Agreement, all approvals
required pursuant to the Act with regard to the issuance of
the Series 1991 Bonds have been obtained and have not been
repealed, revoked or rescinded;
(j) The Issuer shall use the proceeds it receives from
,,the issuance of the Series 1591 Bonds for the purposes set
,,,forth in the Official Statement; and
(k) Any certificate signed by any officer of the
Issuer and delivered to the Underwriter will be deemed to be
a representation by the Issuer to the Underwriter as to the
truth of the statements contained in such certificate.
,Section 6. At 10:00 a.m. Eastern Standard time, on
October 3, 1991, or at such other time or on such earlier or
later date as we mutually agree upon (herein called the ',Closing
Date"), the Issuer will delivered or cause to be delivered to the
Underwriter at New York, New York, or at such other place as we
may mutually agree upon, the Series 1991 Bonds in definitive form
(all the Series 1991 Bonds to be printed with steel engraved
borders) , together with the other documents hereinafter
mentioned; and the Underwriter will accept such delivery and pay
the purchase price thereof as set forth in Section 1 hereof by
certified or official bank check or checks or wire transfer
payable in either case in Federal or other immediately available
funds to the order of the Issuer. It is anticipated that CUSiP
identification numbers will be printed on the Series 1991 Bonds,
but neither the failure to print such number on any Series 1991
Bond nor any error with respect thereto shall constitute cause
for a failure or refusal by the Underwriter to accept delivery of
and pay for the Series 1991.Bonds in accordance with the terms
hereof. The Series 1991 Bonds will be made available for
checking and packaging in New York, New York, two business days
prior to the Closing. The Series 1991 bonds will be delivered as
fully registered bonds in such authorized denominations and
registered in such names and in such amounts as the Underwriter
may request not less than five business days prior to the
Closing.
The Underwriter shal.1furnish the issuer. and Bond Counsel
(as herein defined), not later than 2 days prior to Closing Date,
(1) a certificate satisfactory in form and substance to Bond
Counsel to the effect that each maturity of the Series 1991 Bonds
was the subject of a bona fide public offering and stating the
initial or revised initial reefferinI pri.eee at which at least a
substantial amount of each maturity of the Series 291 Bonds was
sped Ve the p4Pliw (Onwluding bind Immo-, brokers anci similar
persona or cntitimq acting in the implicit/ / sf tiiido wr ters o:. -
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
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regulations thereunder pertaining to tax-exempt obligations such
as the Series 1991 Bonds.
Section 7. The Underwriter has entered into this
Agreement in reliance upon the representations, warranties and
agreements of the Issuer herein and the performance by the Issuer
of its obligations hereunder, both as of the date hereof and as
of the Closing Date. The Underwriter's obligations under this
Agreement are and shall be subject to the following further
conditions:
(a) At the time of the Closing, (i) the Official
Statement and the Resolution shall be in full force and
effect and shall 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 Series
1991 Bonds shall be applied as described in the Official
Statement, (iii) the Issuer shall have duly adopted and
there shall be in full force and effect such resolutions of
the Issuer as, in the opinion of either Rhoads & Sinon, Bond
Counsel or Carlton, Fields, Ward, Emmanuel, Smith & Cutler,
P.A., Counsel for the Underwriter, shall be necessary in
connection with the transactions contemplated hereby and by
the Resolution, and the Official Statement, (iv) the Issuer
shall perform or have performed all of the obligations
required under or specified in this Agreement, the '
Resolution and the Official Statemont to be performed at or
prior to the Closing; (v) the consent and approval of FmHA
to the issuance and sale of the Series 1991 Bond shall have
been obtained; and (vi) the representations, warranties and
agreements of. the Issuer contained in this Agreement shall
be true, complete and correct on this date and on the
Closing Date, as if then made;
(b) The Underwriter shall have the right, pursuant to
written notice given to the Issuer, to cancel its
obligations to purchase the Series 1991 Bonds, if between
the date hereof and the Closing any of the following occurs:
(i) legislation shall have been introduced or enacted by the
Congress of the United States or by the State or adopted by
either House of the Congress or favorably reported for
passage to either House of the Congress or any Committee of
such House to which such legislation has been referred for
consideration or recommended to congress or otherwise
endorsed for passage or proposed for consideration by press
release, other form of notice or otherwise by the President
of the United States, the United States Treasury Department,
the Internal Revenue Service, the Joint Committee on
Taxation of thr. United States Congress or the Chairman or
Ranking Member of either the Committee on Finance of the
United States Senate or the committee on Ways and Means of
the United States House of Representatives, or by any member
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or by the staff of any of the foregoing Committees, or
legislation pending in the United States Congress shall be
amended, or a decision shall have been rendered by a court
of the United States or the State, including the United
States Tax Court, or a ruling shall have been made or a
regulation shall have been proposed or promulgated or a
Xpress release or other form of notice shall be issued by the
United States Treasury Department or the Internal Revenue
Service or other federal or state authority, with respect to
:federal or state taxation upon revenues or other income of
the general Character to be derived by the Issuer, or by any
similar body, or upon interest on obligations of the general
character, of the Series 1991 Bonds, that may have the
purpose or effect, directly or indirectly, of changing the
federal income tax consequences of any of the transactions
contemplated in connection herewith or that, in the
reasonable opinion of the Underwriter, affects materially
and adversely the market price for the Series 1991 Bonds, or
the market price generally of obligations of the general
character of the Series 1991 Bonds; or (ii) a stop order,
ruling or regulations by the Securities and Exchange
Commission or any other governmental agency having
jurisdiction of the subject matter shall be issued or made
to the effect that the issuance, offering or sale of
obligations of the general character of the Series 1991
Bonds, or the issuance, offering or sale of the Series 1991
Bonds, including all the underlying obligations, as
contemplated hereby or by the Official Statement, is in
violation or would be in violation of any provision of the
federal securities law, the Securities Act of 1933, as
amended and as then in effect (the "Securities Act"), the
:registration provisions of the Securities Exchange Act of
1934, as amended and as then in effect (the "Securities
Exchange Act") or the quelitications provisions of the Trust
Indenture Act of 1939, as amended and as then in effect
("Trust Indenture Act"); or (iii) legislation shall be
enacted by the United States of America shall be rendered,
to the effect that obligations of the general character of
the Series 1991 Bonds, including all the underlying
obligations, are not exempt from registration under the
Securities Act or the Securities Exchange Act; or (iv) there
shall exist any event that requires an amendment or
,supplement to the Official Statement which would materially
.and adversely effect the marketability of the Series 1991
Bonds; or (v) there shall have occurred any 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 reasonable opinion of the Underwriter, would
affect materially and adversely the ability of the
Underwriter to market the Series 1991 Bonds; or (vi) there
Mall be in force a general suspension of trading on the New
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York Stock Exchange, whether by virtue of a determination by
that exchange or by order of the Securities and Exchange
Commission or any other governmental authority having
jurisdiction; or (vii) a general banking moratorium shall
have been declared by federal, New York or Florida
authorities having jurisdiction and be in force; or (viii)
any rating of the Series 1991 Bonds or any other obligations
of the County shall have been downgraded or withdrawn by
Standard & Poor's Corporation or Moody's Investors Service,
and such action, in the opinion of the Underwriter, will
materially adversely affect the marketability of the Series
1991 Bonds or the market price thereof; or (ix) any appeal
is taken, or the appeal period has not expired, with respect
to the validation and confirmation of the Series 1991 Bonds
by judgment of the 19th Judicial Circuit in and for Indian
River County, Florida on August 27, 1991; and
(c) At or prior to the Closing, we shall receive the
following documents in such numbers as shall be reasonably
requested and in form and substance satisfactory to the
Underwriter and tot he Counsel to the Underwriter:
(i) The unqualified approving opinion of Rhoads &
Sinon, Bond Counsel, dated the Closing Date,
substantially in the form included as Appendix B to the
Official Statement, and a letter of such counsel, dated
the Closing Date and addressed to the Underwriter, to
the effect that such opinion may be relied upon by the
Underwriter to the same extent as if such opinion were
addressed to them;
(ii) An opinion of Rhoads & Sinon dated the
Closing Date and addressed to the Underwriter, to the
effect that the Statements in the Official Statement
under the sections entitled "Deee iption of the Series
of 1991 Bonds", "Security and Sources of Payment",
"Summary of Certain Provisions of the Resolution", "Tax
Exemption" and in Appendix C, insofar as such
statements summarize or describe the terms of the
Series 1991 Bonds, the Resolution, and the tax-exempt
status of. the Seri ee 1991. Bonds, arc accurate and
correct in all material. respects;
(iii) An opinion of Carlton), Fields, ward,
Emmanuel., Smith & Cutler, P.A., Counsel to the
Underwriter, dated the Closing Date and addressed to
the Underwriter, to the effect that the Series 1991
Bonds ere exempted securities within the meaning of
Section 3(a)(2) of the Securities Act and the
Resolution is exempt from qualification under the Trust
Indenture Act, and it is not necessary, in connection
with the public offering and sain Of the Series 1991
9
Bonds, to register any security under the Securities
Act or to qualify any indenture under the Trust
Indenture Act. In addition, such counsel shall state
in its letter containing the foregoing opinion or in a
separate letter dated the Closing Date and addressed to
the Underwriter to the effect that, without having
undertaken to determine independently the accuracy,
completeness or fairness of the statements contained in
the Official Statement based upon their participation
as counsel to the Underwriter in their preparation of
the Official Statement, and as of the Closing Date,
such counsel has no reason to believe that the Official
Statement as of its date contained any untrue statement
of a material fact or omitted to state a material fact
necessary to make the statements therein, in the light
of the circumstances under which they were made, not
misleading (except for the economic, financial,
technical and statistical data included therein and
information contained in or summarized from summary
reports of engineers included therein, as to which no
view need be expressed), or that the Official Statement
(together with any amendments or supplements thereto)
as of the Closing Date contains any untrue statement of
the circumstances under which they were made, not
misleading (except as aforesaid);
(iv) A certificate, c1.tted the Closing Date, of the
Chairman of the Board of the Issuer to the effect that
(1) the representations and warranties of the Issuer
contained herein are true and correct on and as of the
Closing Date as if made on suoh date, (2) no litigation
is pending or, to the best of his knowledge, threatened
in any court challenging the creation, organization or
existence of the Issuer, or seeking to restrain or
enjoin the issuance or delivery of any of the Series
1991 Bonds, or in any way contesting or affecting the
validity of the Series 1991 bonds, the Resolution or
the pledge thereof of any funds, moneys or securities
under the Resolution, or in any way contesting or
affecting the validity of the Series 1991 Bonds, the
Resolution or the pledge thereof of any funds, moneys
or securities under the Resolution, or in any way
contesting or affecting the validity of this Agreement
or any other transaction contemplated by this Agreement
or the Official Statement, and that, except as
described in the Official Statement, there is no
litigation pending or, to the hest of his knowledge,
threatened against the Issuer or involving any of the
property or assets under the control of the Issuer
which involves the possibility of any judgment or
liability, not fully covered by insurance, which may
result in any material adverse change in the business,
10
properties or assets or in the condition, financial or
otherwise, of the Issuer, which certificate shall be in
the form and substance acceptable to the underwriter
(but in lieu of a portion of such paragraph (2), the
Underwriter may in its sole discretion accept opinions
by counsel to the Issuer and by Bond Counsel,
acceptable to the Underwriter in form and substance,
that in the opinions of each such Counsel, the issues
raised in any such pending or threatened litigation are
without substance or that the contentions of any
plaintiffs therein are without merit), (3) to the best
of his knowledge, neither the Official Statement nor
any amendment or supplement thereto, as of their
respective dates, contains any untrue statement of a
material fact or omits to state any material fact
necessary in order to make the statements contained
therein, in the light of the circumstances under which
they were made, not misleading, (4) no event has
occurred since the date of the Official Statement for
the purposes for which it is to be used or which is
necessary to be disclosed therein in order to make the
statements and information therein not misleading in
any material respect and (5) the Issuer has complied
with all of the agreements and satisfied all the
condition on its part to be performed or satisfied at
or prior to the Closing;
(v) An
ty
Attorney, dated rthe ndate of `ofrthe Closingles P. ,�aand n
formCin
and substance acceptable to Counsel for the
Underwriter, to the following effect:
(1) This Agreement has been duly authorized,
executed and delivered by the Issuer and constitutes a
valid, legal and binding agreement of the Issuer
enforceable in accordance with its terms;
(2) The Issuer is a county duly organize
and existing under the Constitution and laws of the
State and is a Subdivision thereof and has good right
and lawful authority to operate, maintain and improve
the System, and to fix and establish fees and other
charges in respect of such System and collect revenues
therefrom, an required by the Resolution and to perform
all of its obligations under the Resolution in those
respects;
(3) No consent, waiver or any other action
by any person, board or body, public or private, other
than the approvals of the Board and the approval of
FmtIAwhich have been duly and validly obtained, is
required as of the date of the Closing for the County
11
to adopt the Resolution or issue the Series 1991 Bonds
or this Agreement, or to perform its obligations Under
any of the foregoing;
(4) The execution and delivery of this
Agreement and the Series 1991 Bonds and the adoption of
the Resolution and compliance with the provisions of
each do not and will not conflict with or constitute a
breach of or default under any applicable law or
administrative regulation of the State 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 Issuer is a party or is otherwise subject;
and
(5) There is no litigation or proceeding,
pending or threatened, challenging the creation,
organization or existence of the Issue, or the validity
of the Series 199.1 Bonds, this Agreement 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
Issuer would have a material adverse effect upon the
financial condition or revenues of the System, or which
in any manner questions the right of the Issuer to
issue the Series 1991 Bonds.
(6) The information in the Official
Statement under the Caption "Litigation" fairly and
accurately summarizes the information presented
therein.
In addition, such counsel shall state in
its letter containing the foregoing opinion or in a
separate letter dated the Closing Date and addressed to
the Underwriter to the effect that, without having
undertaken to determine independently the accuracy,
completeness or fairness of the statements contained in
the Official. Statement except as set forth in (6)
above, based upon his participation as County Attorney
in the preparation of the Official Statement, and as of
the Closing Date, such counsel has no reason to believe
that the Official. Statement as of its date contained
any untrue statement of a material fact or omitted to
state a material fact necessary to make the statement
therein, in the light of the circumstances under which
they were made, not misleading (except for any
economic, financial, technical and statistical data
included therein and information contained in or
summarized from summary reports of engineers included
therein, as to which no view need be expressed), or
12
that the Official Statement (together with any
amendments or supplements thereto) as of the Closing
Date contains any untrue statement of a material fact
or omits to state a material fact necessary to make the
statement therein, in the light of the circumstances
under which they were made, not misleading (except as
aforesaid);
(vi) A "comfort letter" from Coopers & Lybrand
dated the Closing Date covering such financial
information reasonably requested by the Underwriter and
their counsel; and
(vii) Evidence, satisfactory to the Underwriter,
dated the date of Closing, to the effect that payment
for the insurance policy of Financial Guaranty
Insurance Company ("FGIC") described in the Official
Statement has been made by the: County and received by
FGIC, that FGIC has received all documents that it has
deemed necessary to review and that: such insurance
policy is in .full force and effect;
(viii) A certificate of FGIC or opinion of
Counsel to FGIC, dated the date of Closing, addressed
to the Underwriter, to the effect that (A) FGIC is duly
qualified to do business in the State of Florida, (8)
FGIC has full corporate power and authority to execute
and deliver the insurance policy for the Series 1991
Bonds (the "Policy") and the Policy has been duly
authorized, executed and delivered by FGIC and
constitutes a legal, valid and binding obligation of
FGIC enforceable in accordance with its terms, and (C)
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 purport to describe FGIC,
fairly and accurately describe FGIC;
(ix) A letter from each of Fitch Investors
Service, Inc., Moody's Inventors Service and Standard &
Poor's Corporation to the effect that the Series 1991
Bonds have been assigned a rating no less favorable
than "AAA," "Aaa" and "AAA," respectively, which
ratings shall be in effect as of the date of Closing;
(x) Such additional legal opini.on°, certificates
proceedings, instruments and other documents as the
Underwriter or Bond Counsel may deem necessary to
evidence compliance by the :Cr fuer with applicable legal
requirements, the truth and accuracy in all material
13
.1
44
respects as of the time of the Closing of your
representations and warranties contained herein and in
the Official Statement and the due performance or
satisfaction by you at or prior to such time of all
agreements then to be performed and all conditions then
to be satisfied by you.
If the Issuer shall be unable to satisfy the conditions to
the Underwriter's obligations contained in this Agreement or if
the Underwriter's obligations shall be terminated for any reason
permitted by this Agreement, this Agreement shall terminate and
neither the Underwriter nor the Issuer shall have any further
obligation hereunder, except that the check referred to in
Section 3 hereof shall immediately be returned to the Underwriter
by the Issuer and the respective obligations of the Issuer and
the Underwriter for payment of the expenses, as provided in
Section 8 hereof, shall continue in full force and effect.
section 8.
(a) The Issuer shall pay all expenses incident to the
performance of its obligations hereunder including, but not
limited to (i) the fees and disbursements of Bond Counsel;
(ii) the cost of the wire transfer of federal funds; (iii)
the cost of engraving and signing the Series 1991 Bonds;
(iv) the cost of the preparation, printing and distribution
of the Preliminary Official. Statement and the Official
Statement; (v) fees and disbursements of the Paying Agent;
(vi) the fees and other disbursements of the accounting
firms furnishing comfort letters pursuant to Section
7 (c) (vi) ; (vii) any and all premiums charged for the Policy;
and (viii) the fees and disbursements of any other counsel,
experts or consultants retained by the Issuer.
(b) The Underwriter shall pay (i) the cost of
preparation of Blue Sky Memoranda, if any; (ii) all
advertising expenses in connection with the public offering
of the Series 1991 Bonds; (iii) expenses in connection with
the assignment of CUSIP numbers; (iv) computer-related
charges; (v) the fees and disbursements of counsel retained
by the Underwriter and (vi) all other expenses incurred by
them or any of them in connection with their public offering
and distribution of the Serien 1991 Bonds.
section p. Any notice or other communication to be
to the Issuer under this Agreement may be given
Ygiven by delivering the
same in writing to the Indian River County, 1040 25th Street,
Vero Beach, Florida 32960, to the attention of Mr. James E.
Chandler, County Administrator, and such notice or other
communication to be given to the Underwriter may be given b
delivering the same in writing to Raymond ,Tames & Associates,
14
Inc., 2255 Glades Road, Suite 120-A, Boca Raton, Florida 33431,
Attention: Mr. Arthur H. Ziev.
Section 10.
(a) To the extent permitted by law, the Issuer agrees
to indemnify and hold harmless the Underwriter and each
person if any, who controls the Underwriter against any and
all losses, claims, damages and liabilities (i) arising out
of any untrue statement of a material fact contained in the
Official Statement, as the same may have been duly
supplemented or amended, or the omission therefrom of a
material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not
misleading, except any such statements as were based on
information furnished to the Issuer by the Underwriter in
writing for inclusion in the Official Statement or by others
as specifically indicated in the Official Statement, and
(ii) to the extent of the aggregate amount paid in
settlement of any litigation commenced or threatened arising
from a claim based upon any such untrue statement or
omission if such settlement is effected with the written
consent of the Issuer. In case any such claim shall be made
or action brought against the Underwriter or person
controlling the Underwriter based upon the Official
Statement, in respect of which indemnity may be sought
against the Issuer, the Underwriter shall promptly notify
the Issuer in writing setting forth the particulars of such
claim or action and the Issuer shall assume the defense
thereof including the employment of counsel satisfactory to
the Underwriter (who shall not, except with the consent of
the Underwriter, be counsel of the Issuer), and the payment
of all expenses. The Underwriter or any ouch controlling
personal shall have the right to employ separate counsel in
any such action and to participate in the defense thereof,
but the fees and expenses of such counsel shall be at the
expense of the Underwriter or such controlling person unless
the employment, and payment by the Issuer., of such counsel
has been specifically authorized by the Issuer or unless in
the opinion of counsel to the Underwriter, the Underwriter
has a defense or defenses not available to the Issuer.
(b) To the extent permitted by law, the Underwriter
agrees to indemnify and hold harmless the issuer to the same
extent and in the same manner as the foregoing indemnity
from the Issuer, but only with respect to any untrue
statement of a material fact contained in the Official
Statement, as the same may have been duly supplemented or
amended, or the omission therefrom of a material fact
necessary to make the statements therein, in light of the
circumstances under which they were mads:, not. misleading,
made in reliance upon and in cnnformit:y with information
15
furnished to the Issuer in writing by the Underwriter
expressly for use in the Official Statement (or any
amendment or supplement thereto).
Section 11. This Agreement is made solely for the benefit
of the Issuer and the Underwriter. (including the successors or
assigns of the Underwriter) and no other person, partnership,
association or corporation shall acquire or have any rights
hereunder or by virtue hereof. All representations and
agreements of the Issuer in this Agreement shall remain operative
and in full force and effect regardless of any investigation made
by or on behalf of any of the Underwriter and shall survive the
delivery of and payment for the Series 1991 Bonds.
rection 12. Any approval of the Underwriter, when
required, shall be in writing signed by Raymond James &
Associates, Inc. and delivered to you.
section 13. The validity, interpretation and performance
of this Agreement shall be governed by the laws of the State of
Florida.
of
11,
Accepted by the 'ostler
, 1991
INDIAN RIVER COUNTY, FLORIDA
By:
Name:
Title: �
RAYMOND JAMES & ASSOCIATES, INC.
By:
Name. _.tette2,Aesi _
Title: v,y i
1•
E PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER 17, 1991 Ex
IS,
IT B
Pa 1. g i fLLT
NEW ISSUE R.
WIsthew Oplmiam of dead Caen, swming as.diaeg aampiheoe by the Cagily with mewls ooausu to comfy with povltlss of the lama Ilwas, Cods of 1996. NO demadid. tam
2 25 s the Serfs. 1991 Sods le included GWoes gram oes fm pad al potss Weion® b
Wisdom sed is as Ito d Wi monism... for paps. of for im
de.iImi iha minima leps tan a•d iedividu
sed aorporstas weer minting mums, mauYiss sad judicial drcYm: ialthough b id should to said Iia th
in e mss d corporations (as droned far bind is® tis papaws), such iuwast is tad I
O. d v saoarm is domain* edju mnd einem sande. for impair d welt mhwesive seldimtm Wi. Flmthssmw, ion tis Opinion d Seed Owed. do Serio 1991 done odd tie Imo doodad a° sus
• from iambus. tinder Ws laws d tis tilts d Flare, maps se mum tum sed ass Imposed by Copt! 220, Florida Suns, on imemst, imam oe profile as debt obligator oust by opwuie
2 = bob sal savings incisions ism 'TAX F7(F7dt rlON' Wain for benne ifoemsfem).
ad en to $9,085,000*
ea
c INDIAN RIVER COUNTY, FLORIDA
,�w
�' = Water and Sewer Revenue Bonds, Series 1991
O m tE Dated: October 1, 1991 Due: May 1, as shows belt
a.. IC
Eo = The Water and Sewer Revenue Bonds, Series 1991 (the "Series 1991 Bonds') are being iuued by Indian River County, Florida (the "Count]
c 0 y in fully registered form in denominations of 85,000 and any integral multiple thereof. Interest on the Series 1991 Bonds is payable semiannually on M
raw 0y 1 and November 1, commencing May 1, 1992, by check or daft of , u Paying Agent ("Paying Agent"), made out and nailed to the Register
Eo r Owner, as shown on the registration books of the County maintained by ,u Bond Registrar ("Bond Registrar"), on the fifteenth d
o ion y of the month next preceding the applicable interest payment date and as otherwise described herein. The principal of the Series 1991 Bonds, when di
� and any premium thereon will be payable upon presentation and surrender thereof at theprincipal corporate trust office of the Paying Agent.
O 0
w w
m o The Series 1991 Bonds are subject to redemption, at the option of the County, prior to maturity as set forth herein. The Series 1991 Bonds d
2▪ 0 ¢ are subject to mandatory redemption prior to maturity as described herein.
ro
re ▪ p to The Series 1991 Bonds are being issued pursuant to the authority of the Constitution and laws of the State of Florida, including chapters 1
E 4 c' and 159, Florida Statutes, and other applicable provisions of law (the "Act') and Indian River County Resolution No. 89-19, as amended and supplement
y c a including amendments and supplements made by Resolution No. 91-81, adopted by the County on July 23, 1991, as the same may be amended a
uc F supplemented (collectively, the "Resolution').
ar CU to
U1 a ° The proceeds of Series 1991 Bonds, together with certain other legally available funds, shall be deposited and applied by the County to
is , 'en establish the Construction Fund for the purpose of constructing the regional sludge treatment facility authorized under the Resolution (the "1991 Project'
ecci d (ii) retire the Indian River County, Florida, Water Revenue Bonds, Series 1988, Anticipation Notes, dated December 1, 1988 (the 'Series 1988 Notes
y 0 (iii) make a deposit to the Reserve Account established under the Resolution, (iv) fund the Sinking Fund in an amount to pay a portion of the interest fi
E mei corning due on the 1991 Bonds, and (v) pay certain costs incurred in connection with the issuance of the Series 1991 Bonds, all as more particula
E E o
13 •- described herein.
N d.. d
ea Ca=The payment of the principal of, and interest on the Series 1991 Bonds when due will be insured by a municipal bond insurance policy to
a73 . issued simultaneously with the delivery of the Series 1991 Bonds by
Iii 0 e 0 !-Financial Guaranty Insurance
ae Fuc
Company
arm
Ere a.....or. tawto, r.raw.al/.aurin.brew, .pd. .' ON aell.Wd.x1, u..L�.,a.r..,"a, raw,..
el 5
cThe Series 1991 Bonds are limited obligations of Indian River County, Florida. The Series 1991 Bonds are payable by the County fir(
8'y • and secured by a lien upon and pledge of the Net Revenues of the System and amounts on deposit in the Sinking Fund, the Bond Aurortizati
cz n alt Account and the Reserve Account established under the Resolution, all as described herein. The Series 1991 Bonds together with the outstandi
• H N Indian River County, Horida, Water and Sewer Revenue Refunding Bonds, Series 1989 (the "Series 1989 Bonds") and any other Additional II%
s
w = .- Bonds that may be secured under the Resolution (collectively the "Bonds") are equally and ratably secured by a lien upon and pledge of the I'
at . Revenues. Such lien and pledge of the Nei Revenues of the System are subordinate to a lien granted for certain bonds issued to Farmers Iloi
es e H o Administration, United States Department of Agriculture ("Fm1IA") pursuant to Resolution No. 82-61 of the County, as further described here
.• soul to The aggregate amount of indebtedness relating to such bonds is 89,650,000. Other than such bonds, the County shall not issue any bonds
ID
03 •p obligations senior to or having priority over the Bonds. See "ADDITIONAL FINANCING ARRANGEMENTS - Senior Lien Bonds."
w
Ear a`: NEITILER THE COUNTY, THE STATE OF FLORIDA NOR ANY POLITICAL SUBDIVISION THEREOF HAS PLEDGED ITS FAI
E
.v n OR CREDIT OR TAXING POWER TO TIIE PAYMENT OF THE SERIFS 1991 BONDS. NO IIOLDER OF TIIE SERIES 1991 BONDS SIIA
c> 0 EVER HAVE THE RIGIIT TO COMPEL THE EXERCISE OF ANY AD VALOREM TAXING POWER OF TIIE COUNTY OR TAXATII
c F a IN ANY FORM OF ANY REAL PROPERTY THEREIN TO PAY TIIE SERIES 1991 BONDS OR TIIE INTEREST DUE THEREON NOR
Wco so
ENTITLED TO PAYMENT OF THE SERIFS 1991 BONDS FROM ANY FUNDS OF THE COUNTY EXCEPT AS DESCRIBED IIEREIN.
o•3 MATURITIES, AMOUNTS, RATES AND YIELDS
C p Principal Interest Vlei! m Principal Interest Yield a
0 u– C
.S — a Die Amount win him Din Amount Rats Mlle
c 0c Ls i 7�4cH//� SeN-Eove :z:
w
00 c
E d ^ $ % Term Bonds due - Price _%
an > S % Tenn Bonds due - Price %
Nv m (Accrued interest to be added)
Vw C_
.E .
w wflee Series 1991 Bonds are offered when, as and jf issued and received by the Under.s *er, subject to the approval of kgalry by Rhoads & Sin
EBoca Raton, Florida, Bond Counsel so she County. Certain legal mattes will be paced upon for the County by (Barks P. Mow, &quire, Cor
..... r = Attorney and for the Underwriter by Carlton, Fields, Ward, Emmanuel, Smith & Clukr, P.A., West Palm Beach, Florida. It Je expected that the Se
gh a 1991 Bonds will be available for delivery in New York, New York, in definitive forn on or about
C:st16Q, September _, 1991
Raymond James & Associates, Inc.
se •
PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER 17, 1991 Ex al) -
re ►r
NEW ISSUE r
W la es Opinion d Mad Gmnat. rwm• aseistbq as�Wa by the Casey with spin amass so eat* with povbtees d the hemi bacon bWoos,Ca1916, se •mends4 Woos,
2 = s Ib Swiss 1991 needs is •aelutid hues vase hoar to purpose d ideal tax® taxation sad b eat as ism d tax presser for poems d the ideal aiwrtl.e _hasten tea Import s bdnidnb
�pp end arpatads ds exist*at
t* atas
s. t.Odoies and Ids : d :fakir although i •hb th
ada to mond del e are d oe,paees si(es defend
for Woad ha® ph sten tea tpaa), such isms en boo
C ,t same in d s..... ea blood ares_ essiaae to pyres at such obi n ties Nielsen tex. Fwth.. w. is As Opinion diced Caul, the Stair 1991 aceta std the boas detdrm sae snoop
0' 2tram wades saw the hos d 1b d Aside, side, except aa b ben
awls omen and s imposed by Chinas 220, Florida Sissies. sbawbawd.bootee
s se pais s dab' ably%mm
ia. aad by pomiaa.
2j = boob is savings Woeistiees (se "TAX 61CF]IPnON ' bassi ens Astir lafamltat).
8 as $9,085,000*
PS c o INDIAN RIVER COUNTY, FLORIDA
2 t A Water and Sewer Revenue Bonds, Series 1991
S2'2m Dated: October 1, 1991 Due: May 1, as shown hallow
g
e o o - The Water and Sewer Revenue Bonds, Series 1991 (the "Series 1991 Bonds') are being issued by Indian River County, Florida (the 'County')
IIM as as
deo in fully registered form in denominations of $5,000 and any integral multiple thereof. Interest on the Series 1991 Bonds is payable semiannually on May
mc d 1 and November 1, commencing May 1, 1992, by check or draft of , as Paying Agent ('Paying Agent"), made out and mailed to the Registered
E o $ Owner, as shown on the registration books of the County maintained by ,as Bond Registrar ("Bond Registrar"), on the fifteenth day
o e22 d of the month next preceding the applicable interest payment date and as otherwise described herein. The principal of the Series 1991 Bonds, when due,
:51 c and any premium thereon will be payable upon presentation and surrender thereof at the principal corporate trust office of the Paying Agent.
Tr a
w
c
o eni
a. y eo The Series 1991 Bonds are
being issued pursuant to the authority of the Constitution and laws of the State of Florida, including chapter 125
E .. m on c and 159, Florida Statutes, and other applicable provisions of law (the 'Act') and Indian River County Resolution No. 89-19, as amended and supplemented,
W m c o including amendments and supplements made by Resolution No. 91-81, adopted by the County on July 23, 1991, as the same ray be amended and
gc c supplemented (collectively, the 'Resolution").
d
to S .c The proceeds of Series 1991 Bonds, together with certain other legally available funds, shall be deposited and applied by the County to (i)
to li'e establish the Construction Fund for the purpose of constructing the regional sludge treatment facility authorized under the Resolution (the '1991 Project'),
c E (ii) retire the Indian River County, Florida, Water Revenue Bonds, Series 1988, Anticipation Notes, dated December 1, 1988 (the 'Series 1988 Notes'),
y««
(iii) make a deposit to the Reserve Account established under the Resolution, (iv) fund the Sinking Fund in an amount to pay a portion of the interest first
Eye•. coining due on the 1991 Bonds, and (v) pay certain costs incurred in connection with the issuance of the Series 1991 Bonds, all as more particularly
d d 'c described herein.
0.
E.—
The 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
E Ti1
OD issued simultaneously with the delivery of the Series 1991 Bonds by
o a Financial Guaranty Insurance
a0.) I' lYIC. Company
E co
cot IE
o
SIS
5Z
N
is N O
0
.p
m NEITHER TIIE COUNTY, TIIE STATE OF FLORIDA NOR ANY POLITICAL SUBDIVISION THEREOF IIAS PLEDGED ITS FAITH
oOR CREDIT OR TAXING POWER TO THE PAYMENT OF TIIE SERIES 1991 BONDS. NO HOLDER OF TIIE SERIES 1991 BONDS SIIALI.
EVER HAVE THE RIGIIT TO COMPEL THE EXERCISE OF ANY AD VALOREM TAXING POWER OF THE COUNTY OR TAXATION
:0(.6 INN ANY FORM OF ANY REAL PROPERTY THEREIN TO PAY TIIE SERIES 1991 BONDS OR THE INTEREST DUE THEREON NOR BE
ENTITLED TO PAYMENT OF THE SERIFS 1991 BONDS FROM ANY FUNDS OF TIIE COUNTY EXCEPT AS DESCRIBED HEREIN.
.c
0
3
C nue
.47
E vlZ I
5 $ % Tenn Bonds due - Price %
$ % Tenn Bonds due - Price _%
c (Accrued Wendto be added)
co
The Series 1991 Bonds are subject to redemption, at the option of the County, prior to maturity as set forth herein. The Series 1991 Bonds due
are subject to mandatory redemption prior to maturity as described herein.
0
3
as
N
0
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o
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mg
Vow* ..ar.used b. 16.1.11.11.•./. rb......... r...p.., • lave. ...s.e.owl .arare.,b... t .......M"..e....
The Series 1991 Bonds are limited obligations of Indian River County, Florida. The Series 1991 Bonds are payable by the County from
and secured by a Gen upon and pledge of the Net Revenues of the System and amounts on deposit in the Sinking Fund, the Bond Amortization
Account and the Reserve Account established under the Resolution, all as described herein. The Series 1991 Bonds together with the outstanding
Indian River County, Florida, Water and Sewer Revenue Refunding Bonds, Series 1989 (the "Series 1989 Bonds") and any other Additional Party
Bonds that may be secured under the Resolution (collectively the "Bonds") are equally and ratably secured by a lien upon and pledge of the Net
Revenues. Such lien and pledge of the Net Revenues of the System are subordinate to a lien granted for certain bonds issued to Farulers Howe
Administration, United States Department of Agriculture ("Fm11A") pursuant to Resolution No. 82-61 of the County, as further described herein.
The aggregate aluount of indebtedness relating to such bonds is $9,650,000. Other than such bonds, the County shall not issue any bonds or
obligations senior to or having priority over the Bonds. See "ADDITIONAL FINANCING ARRANGEMENTS - Senior Lien Bonds."
MATURITIES, AMOUNTS, RATES AND YIELDS
Principal Interest Yield at Principal Interest Yldd or
Amount Kele Prism Dur Amount Raw Price
C
in The Series 1991 Bonds are offered when, as and ((issued and received by the Underwriter, subject to the approval of kgaUty by Rhoads & Sian,
rat Boca Raton, Florida, Bond Counsel to the Gummy. Certain kraal matters will be passed upon for the County by G7earks P. Vitwtac, Esquire, County
V Atwn1ey and for she Underwdar by came*, Fields, Wand, Emmanuel, Snaith & Ostler, P.A., West Pabn Beach, Florida. 11 is expected that the Series
1991 Bonds will be availabk for delivery in New York, New York, in definitive fonts on or about
S
September, lel Raymond James & Associates, Inc,
SCHEDULE 1
Indian River County, Florida
Water and Sewer Revenue Bonds
Series 1991 - 2S Tears
PRICING SUMMARY
DATE
PRINCIPAL
COUPON
YIELD
MATURITY VALUE
PRICE DOLLAR PRICE
5/01/1993
70,000.00
4.85000%
4.8474S%
70,000.00
100.000% 70,000.00
5/01/1994
195,000.00
5.10000%
5.09823%
195,000.00
100.000% 195,000.00
5/01/1995
205,000.00
5.25000*
5.24861%
205,000.00
100.000% 205,000.00
5/01/1996
215,000 00
5.40000%
5.39882%
215,000.00
100.000% 215,000.00
5/01/1997
::.:325,000.00'
:`>5 60000X
::5 519892% <
225,000.00
:100.000X'>`.:: 225,000:00
5/01/1998
240,000.00
5.70000%
5.69903%
240,000.00
100.000% 240,000.00
5/01/1999
250,000.00
5.80000%
5.79910%
250,000.00
100.000% 250,000.00
5/01/2000
265,000.00
5.90000*
5.89915%
265,000.00
100.000% 265,000.00
5/01/2001
285,000 00
6.00000%
5.99919%
285,000.00
100.000% 285,000.00
5/01/2002
300,000.00
6.10000
:6:15000 _
300.000.00
99.609%' ..'298,827.00
5/01/2003
320,000.00
6.30000%
6.29921%
320,000.00
100.000% 320,000.00
5/01/2004
340,000.00
6.40000%
6.39922%
340,000.00
100.000% 340,000.00
5/01/2005
360,000.00
6.50000%
6.49923%
360,000.00
100.000% 360,000.00
5/01/2006
385,000 00
6.50000%
6.55000%
385,000.00
99.528% 383,182.80
5/01/2009
1;310;000.00
6:70000%
6.69929%
<1,310,000.00
100.000% -- 1,310,000.00
5/01/2016
4,240,000.00
6.50000%
6.72000*
4,240,000.00
97.364% 4,128,233.60
TOTAL
9,205,000.00
-
-
9,205,000.00
- 9,090,243.40
777-7
SCHEDULE II
%landatory Redemption
The Series 1991 Bonds due May 1, 2009 are subject to mandatory redemption by lot prior to maturity in the years and amounts
set forth below at a price equal to 100% of principal amount. Accrued interest is also payable on the redemption date.
hioripel YAKMteatLL_
$410,000 2007
435,000 2008
465,000' 2009*
The Series 1991 Bonds due May 1, 2016 are subject to mandatory redemption by lot prior to maturity in the years and
amounts set forth below at a price equal to 100% of principal amount. Accrued interest is also payable on the redemption date.
"Amapa
$500,000
530,000
565,000
605.000
635,000
680,000
725.000*
* Maturity
2010
2011
2012
2013
2014
2015
2016*
Optional Redemption
The Series 1991 Bonds stated to mature on or after May 1, 2002, are subject to redemption at the option of the County in
whole or, from time to time, in part. on May 1. 2001. Of On any date thereafter at the respective redemption prices set forth below
expressed as percentages of the principal amount to be redeemed, plus accrued interest to the date of redemption.
Redemption Redempeloa
tom__
NUL.—
May 1 2001 through April 30, 2002 102%
May 1 2002 through April 30, 2003 101 %
May 1 2003 and thereafter 100%
1f fewer than all of the Series 1991 Bonds ate to be so redeemed. the County may select the maturity or maturities to he
redeemed. If fewer than all of the Series 1991 Bonds of any particular maturity are to be redeemed. the Bond Registrar %ill select
by lot the particular Series 1991 Bonds or portions of Series 1991 Bonds of such maturity to be redeemed. The portion of any Serle.
1991 Bond of a denomination of more than $5,000 to be redeemed will be in the principal amount of $5.000 or an integral multiple
of that sum.
II
INDIAN RIVER COUNTY, FLORIDA
Board of County Commissioners
Richard N. Bird, Chairman
Gary C. Wheeler, Vice Chairman
Margaret C. Bowman
Carolyn K. Eggert
Don C. Scurlock, Jr.
Clerk of the Circuit Court and Ex -Officio Clerk
to the Board of County Commissioners
Jeffrey K. Barton
County Administrator
James E. Chandler
County Attorney
Charles P. Vitunac
Director of Utilities
Terrance G. Pinto
Director of Office of Management and Budget
Joseph A. Baird
Bond Counsel
Rhoads & Sinon
Boca Raton, Florida
Financial Advisor
Fishkind & Associates, Inc.
Orlando, Florida
Certified Public Accountant
Coopers & Lybrand
Orlando, Florida
No dealer, broker, sales representative or any other person hu been authorized by the County or the Underwriter
to give any information or to make any representation, other than those contained in this Official Statement, and, if given
or made, such other information or representations must not be relied upon u having been authorized by the foregoing. This
Official Statement does not constitute an offer to sell or the solicitation of an offer to buy and there shall be no 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 set forth herein has been obtained from the County and other sources which are believed to be
reliable, but is not guaranteed as to accuracy or completeness nor is such information to be construed as a representation
by the Underwriter or, as to information from other sources, the County. The information and the expressions of opinion
contained herein are subject to change without notice and neither the delivery of' this Official Statement nor any sale made
hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the County,
the System, or the 1991 Project, since the date hereof or the earliest date as of which such information is given.
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
THE SERIES 1991 BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN
MARKET. SUCH STABILIZATION, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.
TABLE OF CONTENTS
INTRODUCTION 1
PURPOSE OF THE SERIES 1991 BONDS 2
ESTIMATED SOURCES AND USES OF FUNDS 2
DESCRIPTION OF THE SERIES 1991 BONDS 2
Mandatory Redemption 3
Optional Redemption 3
Notice of Redemption 3
Registration, Transfer, and Exchange 3
SECURITY AND SOURCES OF PAYMENT 4
Pledge of Net Revenues 4
Insurance 5
Rate Covenant 5
Flow of Funds for the Bonds 6
Flow of Funds Under Senior Lien Bond Resolution 8
ADDITIONAL FINANCING ARRANGEMENTS 8
Senior Lien Bonds 8
Parity Bonds 8
FUTURE FINANCING ARRANGEMENTS 10
MUNICIPAL BOND INSURANCE 10
DEBT SERVICE SCHEDULES 11
THE SYSTEM 13
General 13
System Staff 13
Water and Sewer Customers 13
Rate Structure 14
Outstanding Debt 14
Selected Financial Data 14
THE 1991 PROJECT 16
THE GRANT 16
TAX EXEMPTION 16
Opinion of Bond Counsel 16
Non -Arbitrage Bonds 16
Corporate Alternative Minimum Taxes; Environmental Tax; Branch Profits Tax 17
Financial Institutions' Cost of Carrying Tax -Exempt Bonds 17
Original Issue Discount 17
Other Federal income Tax Consequences 17
LITIGATION 17
RATINGS 1 g
UNDERWRITING 1 g
APPROVAL OF LEGALITY 18
MISCELLANEOUS 18
ADDITIONAL INFORMATION 19
AUTHORIZATION OF OFFICIAL STATEMENT 19
APPENDIX A - INDIAN RIVER COUNTY, FLORIDA -- GENERAL INFORMATION a-1
APPENDIX B - FINANCIAL STATEMENTS OF THE COUNTY B-1
APPENDIX C - SUMMARY OF CERTAIN PROVISIONS OF THE RESOLUTION C-1
APPENDIX D - ENGINEERS' REPORT D-1
APPENDIX E - SPECIMEN MUNICIPAL BOND INSURANCE POLICY E -I
APPENDIX F - FORM OF OPINION OF BOND COUNSEL F -I
APPENDIX G - CERTAIN DEFINED TERMS USED HEREIN G -I
11
$9,085,000'
INDIAN RIVER COUNTY, FLORIDA
WATER AND SEWER REVENUE BONDS, SERIES 1991
INTRODUCTION
This Official Statement, which includes the coves page and the appendices hereto, furnishes certain information relating
to the sale by Indian River County, Florida (the 'County) of $9,085,000' aggregate principal amount of its Water and
Sewer Revenue Bonds, Series 1991 (the 'Series 1991 Bonds'). The Series 1991 Bonds are additional parity bonds of the
County under the Resolution (hereinafter defined). As of the date of this Official Statement there are outstanding under the
Resolution bonds designated u the County's Water and Sewer Revenue Refunding Bonds, Series 1989 (the 'Series 1989
Bonds') in the aggregate principal amount of $6,375,000. (The Series 1989 Bonds, the Series 1991 Bonds and any additional
obligations of the County issued as Additional Parity Bonds pursuant to the Resolution are herein referred to u the 'Bonds.')
The Series 1991 Bonds are being issued pursuant to the authority of the Constitution and laws of the State of Florida,
including Chapters 125 and 159, Florida Statutes, and other applicable provisions of law (the 'Act') and Indian River County
Resolution No. 89-19 as amended and supplemented, including the amendments and supplements made by Resolution No.
91-81, adopted by the County on July 23, 1991, as the same may be amended and supplemented (collectively, the
"Resolution').
The validity of the Series 1991 Bonds has been determined by a Final Judgment of the Nineteenth Judicial Circuit, in
and for Indian River County, Florida, rendered on August 27, 1991. The time for appeal will expire on September 26,
1991. The Series 1991 Bonds may not be issued if an appeal is pending on the proposed closing date.
The Bonds are limited obligations of Indian River County, Florida, payable by the County from and secured by a lien
upon and pledge of the Net Revenues of the System, including amounts on deposit in the Sinking Fund, the Bond
Amortization Account and the Reserve Account established under the Resolution, all as described herein. Such lien and
pledge of the Net Revenues of the System is subordinate to a lien on the revenues and receipts of the System granted to
secure payment of certain bonds sold to Farmers Home Administration, United States Department of Agriculture ('FmHA")
pursuant to Resolution No. 82-61 of the County (the 'Senior Lien Bond Resolution'). The aggregate amount of indebtedness
relating to such bonds is $9,650,000. Other than such bonds, the County shall not issue any bonds or obligations senior to
or having priority over the Bonds. See 'ADDITIONAL FINANCING ARRANGEMENTS — Senior Lien Bonds."
Neither the County, the State of Florida nor any political subdivision thereof has pledged its faith or credit or taxing
power to the payment of the Series 1991 Bonds. No holder of the Series 1991 Bonds shall ever have the right to compel
the exercise of any ad valorem taxing power of the County or taxation in any form of any real property therein to pay the
Series 1991 Bonds or the interest due thereon nor be entitled to payment of the Series 1991 Bonds from any funds of the
County except as described herein.
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, which
reference is directed for full and complete statements of all matters relating to the Resolution, 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. See 'Appendix G - Certain Defined Terms Used Herein' for definitions.
..I:^t+1', VI J J 1L
PURPOSE OF THE SERIES 1991 BONDS
The County finds it necessary and desirable (i) to establish the Construction Fund to construct, acquire, furnish, and
equip a regional sludge treatment facility (the '1991 Project') in the County in order to preserve and protect the public
health, safety, and welfare of its inhabitants, (ii) to retire the Water Revenue Bonds, Series 1988, Anticipation Notes, dated
December 1, 1988 (the 'Series 1988 Notes'), (iii) to make a deposit to the Reserve Account established under the Resolution,
(iv) to fund the Sinking Fund in an amount to pay a portion of the invest first coming due on the 1991 Bonds, and (v) to
pay certain costs incurred in connection with the issuance of the Series 1991 Bonds.
The Series 1991 Bonds are being issued in en amount which, together with other legally available funds, the County
believes will be sufficient for such purposes.
ESTIMATED SOURCES AND USES OF FUNDS
Sources:
Principal Amount of Series 1991 Bonds
Accrued Interest
The Grant
County Funds
Uses:
Total Sources
Deposit to Construction Fund(1)
Deposit to Series 1988 Note Payment Account
Deposit to Reserve Account (2)
Deposit to Sinking Fund
Original Issue Discount
Underwriter's Discount
Issuance Expenses and Municipal Bond
Insurance Premium
Total Uses
(1) Includes design, administrative, and certain other costs relating to construction of the 1991 Project.
(2) Amount required to increase Reserve Account to maximum annual debt served on all Bonds to be outstanding.
DESCRIPTION OF THE SERIES 1991 BONDS
The Series 1991 Bonds will be dated October 1, 1991, and will bear interest from such date at the rates per annum as
set forth on the cover page hereof, payable on May 1, 1992 and semiannually thereafter on each November 1 and May 1
and will mature on May 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 denominations of 55,000 and any integral multiple
thereof. Interest on the Series 1991 Bonds is payable by check or draft or, at the option of the registered owners of
S1,000,000 or more in principal amount of the Series 1991 Bonds, by wire transfer, of , as Paying Agent ("Paying
Agent"), made out and mailed to, or in the case of a wire transfer of funds pursuant to the written instructions of, the
registered owner ("Registered Owner"), as shown on the registration books of the County, maintained by
Bond Registrar ('Bond Registrar"), on the fifteenth day of the month next proceeding the applicable interest ' as
and as otherwise described herein. The unci of the Series 1991 Bonds, when due, and anypayment date
principal Pv premium thereon will be
payable upon presentation and surrender thereof at the principal corporate trust office of the Paying Agent.
The Series 1991 Bonds aro subordinate to certain indebtedness of the County to FmHA. The aggregate amount of such
indebtedness is $9,650,000. Other than the bonds relating to such indebtedness, the County shall not issue any hoods or
obligations senior to or having priority over the Series 1991 Bonds. See "ADDITIONAL FINANCING ARRANGEMENTS
-• Senior Lien Bonds.'
Mandatory Redemption
The Series 1991 Bonds due May 1,
and amounts set forth below ata price
redemption date.
Primipol
Maim_
Sib
The Series 1991 Bonds due May 1,
and amounts set forth below at a price
redemption date.
are subject to mandatory redemption by lot prior to maturity in the years
equal to 100% of principsl amount. Accrued interest is also payable on the
Xw
4774 c ti,ED Sc tf(OtL E j
Optional Redemption
are subject to mandatory redemption by lot prior to maturity in the years
equal to 100% of principal amount. Accrued interest is also payable on the
tMatipd
M Yt�c
S 66 4-7-7�t4c 1164 ScHeO u .11—
The Series 1991 Bonds stated to mature on or after May 1, , are subject to redemption at the option of the County
in whole or, from time to time, in part, on May 1. , or on any date thereafter at the respective redemption prices set
forth below expressed u percentages of the principal amount to be redeemed. plus accrued interest to the date of redemption.
Redemption Rede aptise
Ped_ 1_
5th 6 4-7-Tr4-e#k4 5cHave-e
If fewer than all of the Series 1991 Bonds are to be so redeemed. the County may select the maturity or maturities to
be redeemed. If fewer than all of the Series 1991 Bonds of any particular maturity aro to be redeemed, the Bond Registrar
will select by lot the particular Series 1991 Bonds or portions of Series 1991 Bonds of such maturity to be redeemed. The
portion of any Series 1991 Bond of a denomination of more than $5,000 to be redeemed will be in the principal amount of
$5,000 or an integral multiple of that sum.
Notice of Redemption
Notice of the intention to redeem the Series 1991 Bonds in whole or in part will be mailed by the Paying Agent, by first
class mail, to the Registered Owners of the Series 1991 Bonds to be redeemed in whole or in part not more than 45 days
and not leas than 30 days prior to the date fixed for redemption, at their respective addresses u shown on the registration
books, in accordance with the terms of the Resolution. Such notice is to specify the series, maturities and numbers of Series
1991 Bonds to be redeemed (including the CUSIP number); the date fixed for redemption; the redemption price or prices
applicable to the Series 1991 Bonds to be redeemed; and that on the date fixed for redemption such Series 1991 Bonds will
be payable at the principal corporate trust office of the Paying Agent and that after such date interest shall cease to accrue
on such Series 1991 Bonds. If holders or Registered Owners of all such Series 1991 Bonds to be redeemed file written
waivers of notice with the Paying Agent, such Series 1991 Bonds may be redeemed on the redemption date without necessity
of notice by mailing. Failure to mail any notice of redemption or any defect therein or in the mailing thereof will not affect
the validity of any proceeding for redemption of other Series 1991 Bonds so called for redemption.
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 gusraaty of signature satisfactory to the County or the Bond Registrar. duly executed by the Registered Owner
or by his duly authorized attorney.
s
The County and the Bond Registrar may charge the Registered Owner a sum sufficient to reimburse them for any
expenses incurred in malting any exchange or transfer. The Bond Registrar or the County also may 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.
l
SECURITY AND SOURCES OF PAYMENT
Pledge of Net Revenues
The Bonds are limited obligations of the County. The Bonds will be payable solely by the County from and secured
by a lien upon and pledge of the Net Revenues of the System, together with such other revenues and funds which the County
may choose to pledge by subsequent resolution u described below. Such lien and associated pledge of the Net Revenues
of the System is subordinate to a lien on the revenues and receipts of the System granted to secure payment of the Senior
Lien Bonds. See 'ADDITIONAL FINANCING ARRANGEMENTS — Senior Lien Bonds.'
Subject to the release of security as discussed below, 'Net Revenues' for purposes of the Bonds means Revenues less
Operating Expenses. 'Revenues' as used herein means: (i) all receipts and revenues of the County derived from the
imposition, collection, and enforcement of uniform water and sewer service rates, fees and charges for the use of and the
services furnished or to be furnished by the facilities constituting the System, including the earnings and interest income
derived from the investment of the moneys on deposit in various funds and accounts established in connection with the
System, but excluding Surcharges, Impact Fees, Special Assessments, Franchise Fees, and Fees in lieu of Franchise Fees
(the 'Uniform Charges'); (ii) all receipts and revenues of the County received from the operation of the 1991 Project for
the treatment of septage and grease; (iii) all North Beach Water Surcharges (u hereinafter defined) for services furnished
by the North Beach Water System (u defined hereinafter); (iv) with the consent of the Bond Insurer, so long as any Series
1989 Bonds or Series 1991 Bonds are outstanding, such Surcharges, Impact Fees, Special Assessments, Franchise Fees, and
Fees in lieu of Franchise Fees as the County, by resolution, may pledge specifically in connection with the Bonds; and (v)
with the consent of the Bond Insurer, so long as any Series 1989 Bonds or Series 1991 Bonds are outstanding, such other
revenues of the County as the County, by resolution, may pledge specifically in connection with the Bonds.
THE REVENUES PLEDGED IN CONNECTION WITH THE BONDS INCLUDE ONLY THE UNIFORM CHARGES
OF THE SYSTEM AND DO NOT INCLUDE ANY SURCHARGES, IMPACT FEES, SPECIAL ASSESSMENTS,
FRANCHISE FEES, FEES IN LIEU OF FRANCHISE FEES, OR OTHER REVENUES OF THE SYSTEM, EXCEPT
CERTAIN RECEIPTS, REVENUES, AND SURCHARGES DESCRIBED IN (ii) AND (iii) ABOVE.
The County may, by resolution of the Board filed with the Clerk of the Board of County Commissioners, except and
release from the foregoing pledge and lien, and the phrase 'Revenues' as used in connection with the Bonds shall no longer
include, the receipts and revenues of the County derived from the Uniform Charges for the use of and services furnished
or to be furnished by any water and/or sewer facilities constituting a physically independent system of the County, or any
impact Fees, Special Assessments, Surcharges, Franchise Fees, Fees w Lieu of Franchise Fees, or other receipts and
revenues (other than Uniform Charges) theretofore pledged in connection with the Bonds, if there shall be filed with the
Clerk of the Board of County Commissioners the following:
(1) A certificate of an independent firm of certified public accountants of suitable experience and responsibility:
(i) stating that the books and records of the County relating to the collection and receipt of the Revenues and the
Operating Expenses have been audited by them for the Fiscal Year immediately preceding the date of the proposed
release of such receipts and revenues from the pledge hereunder or for any twelve (12) consecutive month period out
of the eighteen (18) consecutive months immediately preceding such date; (ii) setting forth the Revenues, the Uniform
Charges, the Operating Expenses and the Net Revenues for the audited period referred to in (i) above, with respect to
which such certificate is made; and (iii) stating that the Net Revenues, adjusted to give effect to the proposed release
of such receipts and revenues as if the same had occurred at the beginning of such audited period, were equal to at least
1.20 times the largest amount of principal and interest which will mature and become due in any Fiscal Year thereafter
on all Bonds then outstanding. For purposes of (iii) above (A) Revenues, Uniform Charges, and Operating Expenses
may be further adjusted so as to fairly represent the operation of the System, provided that the amount and a detailed
reason for such adjustment is set forth in such certificate; (B) Net Revenues may also be adjusted for (I) the pro forma
effect of rates implemented prior to the proposed release of such receipts and revenues and (II) new customers added
to the System during the test period; and (C) any amounts owed to the issuer of a Reserve Account Credit Instrument
(u defined hereinafter) as a remrlt of a draw thereon, u appropriate, shall be added to the principal and interest payable
on Bonds to determine compliance with the foregoing test;
(2) A certificate of the chief financial officer of the County stating that the County has established and will maintain
a separate accounting of all revenues and expenses in connection with any such independent system or with respect to
such Impact Fees, Surcharges, Special Assessments, Franchise Fees, Fees in Lieu of Franchise Fees, or other receipts
and revenues to be released, apart from the Pledged Funds; and
(3) Written consent of the Bond Insurer, if the 1989 Bond Insurance Policy or the 1991 Bond Insurance Policy is
then in effect.
For purposes of the foregoing, payments during the Fiscal Year for. (i) principal and interest on the Senior Lien Bonds,
(ii) any renewal and replacement fund created in connection with the Senior Lien Bonds Resolution (the 'Required Renewal
Fund Payments') and (iii) any reserve account created in connection with the Senior Lien Bonds (the 'Senior Lien Reserve
Account Payments'), shall be treated u Operating Expenses. All or any part of the certificate required under subparagraph
(1) above may be rendered by consulting engineers, consultants, or other persons with requisite knowledge and experience
who are not reasonably objected to by Bond Insurer.
Neither the County, the State of Florida, nor any political subdivision thereof has pledged its faith or credit or taxing
power to the payment of the Series 1991 Bonds. No holder of the Series 1991 Bonds shall ever have the right to compel
the exercise of any ad valorem taxing power of the County or taxation in any form of any real property therein to pay the
Series 1991 Bonds or the interest due thereon nor be entitled to payment of the Series 1991 Bonds from any funds of the
County except u described herein.
Insurance
The scheduled payment of principal and interest on the Series 1991 Bonds will be insured by Financial Guaranty
Insurance Company ('Financial Guaranty'). The County has made no investigation and makes no representation with respect
to Financial Guaranty and the policy, and reference should be made to the information under the caption "MUNICIPAL
BOND INSURANCE' herein and Appendix E attached hereto for a description of Financial Guaranty and its specimen
insurance policy. The material under said caption and in Appendix E hu been furnished by Financial Guaranty.
Rate Covenant
The County covenants in the Resolution to establish and maintain such Uniform Charges and, as applicable, such
Surcharges, Impact Fees, Special Assessments, Franchise Fees, Fees in lieu of Franchise Fees, and such other receipts and
revenues in connection with the System, so as to always provide either of the following:
(1) Uniform Charges less Operating Expenses sufficient to pay (a) one hundred percent (100%) of all required
deposits into the Reserve Account, and (b) one hundred twenty percent (120%) of the amount of principal and interest
becoming due in such Fiscal Year on the Bonds outstanding, or
(2) When the Revenues include receipts and revenues in addition to Uniform Charges, Net Revenues in each Fiscal
Year sufficient to pay (a) one hundred percent (100%) of all required deposits into the Reserve Account, and (b) one
hundred twenty percent (120%) of the amount of principal and interest becoming due in such Fiscal Year on the Bonds
outstanding; provided, however, that Uniform Charges leas Operating Expenses are sufficient to pay (a) one hundred
percent (100%) of all required deposits into the Reserve Account, and (b) one hundred percent (100%) of the amount
of principal and interest becoming due in such Fiscal Year on the Bonds outstanding.
For purposes of the foregoing rate covenant, Senior Lien Bonds Debt Service, Required Renewal Fund Payments, and
Senior Lien Bonds Reserve Account Payments shall be treated as Operating Expenses, In addition, any amounts owed by
the County to the issuer of a Reserve Account Credit Instrument (u defined hereinafter) u a result of a draw thereon. as
11
appropriate, shill be added to the principal and interest payable on the Bonds to determine compliance with this rate
covenant.
Flow of Funds for the Bonds
Under the Resolution, the County has covenanted that all Revenues shall upon receipt thereof be deposited in the 'Water
and Sewer Revenue Fund' (the 'Revenue Fund'). The Revenues are subject to the prior pledge and lien granted with respect
to the Senior Lien Bonds under the Senior Lien Bond Resolution. The Senior Lien Bonds consist of aggregate indebtedness
of $9,650,000. The County has covenanted not to issue any bonds or obligations senior to or having priority over the Bonds
other than the Senior Lien Bonds.
Subject to the prior pledge and lien granted with respect to the Senior Lien Bonds and the flow of funds with respect
thereto (Sae 'SECURITY AND SOURCES OF PAYMENT - Flow of Funds under Senior Lien Bond Resolution'), all
Revenues on deposit in the Revenue Fund for the Bonds shall be disposed of by the County subject to the following order
of priority:
(1) First, the County shall transfer in each month to the Operatiaa and Maintenance Fund the amount required to
be deposited therein to pay the Operating Expenses due or to become due for such month, provided, however, that credit
shall be given for funding of such month's Operating Expenses under the Senior Lien Bond Resolution.
(2) Second, the County shall deposit in each month to a fund to be known as the "Water and Sewer Revenue Bonds
Sinking Fund" (the 'Sinking Fund"), one-sixth (1/6th) of such sum as will be sufficient to pay interest on the Bonds u
the same shall become due on the next interest payment date, together with the amount of any deficiency in prior
deposits for interest on Bonds, and one -twelfth (1/121b) of the principal of Bonds maturing or subject to mandatory call
for redemption on the next principal payment date with respect to the Bonds. Such deposits shall take into account the
sums, if any, in the Rood Amottiration Account (hereinafter defined) attributable to such payments and the sums, if any,
deposited in the Sinking Fund out of proceeds from the sale of Bonds to pay interest thereon. In addition, there shall
be deposited in the Sinking Fund amounts sufficient to pay the fees and charges of the Paying Agent.
(3) Third, the County shall deposit into an account in the Sinking Fund to be known as the 'Bond Amortization
Account,' such sums u are required by resolution of the County to be deposited therein at such times u are required
thereby for each series of Term Bonds for purposes of the minatory redemption thereof.
(4) Fourth, the County shall deposit into an account in the Sinking Fund to be known as the 'Reserve Account,"
a sum at least equal to and sufficient to pay the maximum amount of principal and interest on all outstanding Bonds
becoming due in any ensuing Fiscal Year. A sum to be specified by subsequent resolution of the County will be
deposited in the Reserve Account out of the proceeds of the sale of Series 1991 Bonds. To the extent the amount
deposited in the Reserve Account is less than the maximum amount of principal and interest on all outstanding Bonds
becoming due in any ensuing Fiscal Year, the County will make such additional required payments or substitutions
therefor u described herein.
However, in no Fiscal Year shall Net Revenues in excess of twenty percent (20%) of the maximum amount of
principal and interest on all outstanding Bonds becoming due in any ensuing Fiscal Year be required to be deposited in the
Reserve Account, except as may be required by Subsection P or Subsection Z of Section 16 of Resolution No. 89-19. No
further deposits shall be required to be made into the Reserve Account as long as there shall remain on deposit therein
(including any Reserve Account Credit Instrument as described below) a sum equal to the maximum amount of principal and
interest on all outstanding Bonds becoming due in any ensuing Fiscal Year. The value of the Reserve Account, including
investments on deposit in the Reserve Account, shall be determined annually on the first day of the Fiscal Year by an
independent firm of certified public accountants, who may be the accountants for the County, in accordance with generally
accepted accounting principles.
Notwithstanding the foregoing, in lieu of, in whole or in part, the required deposits into the Reserve Account, the
County may cause to be deposited into the Reserve Account any of the following (each a "Reserve Account Credit
Instrument"):
6
11
(a) A surety bond or insurance policy issued to the Paying Agent, as agent of the Bondholders, by a company
licensed to nate an insurance policy guaranteeing the timely payment of debt service on the Bonds (a 'municipal
bond insurer"). if the calms paying ability of the issuer thereof shall be rated 'AAA' or 'Ana' by Standard &
Pones Corporation ('S&P') or Moody's Investors Service ('Moody'.'), respectively;
(b) A suety bond or insurance policy issued to the Paying Agent. as agent of the Bondholders, by an entity
other than s municipal bond insurer. if the form and 'substance of such instrument and the issuer hereof shall be
approved by the Bond Insurer; or
(c) An unconditional irrevocable letter of credit issued to the Paying Agent, u agent of the Bondholders, by
a bank, if such bank is rated at least "AA' by S&P.
Any such Reserve Account Credit Instrument shall meet the further terms and conditions described in Subsection Z of
Section 16 of Resolution No. 89-19 and shall be payable or available to be drawn upon, u the can may be (upon the
giving of notice as required theraunder), by the Paying Agent on any interest payment date on which a deficiency exists
which cannot be cured by money in any other fund or account held pursuant thereto and available for such purpose.
It shall be the duty of the Paying Agent to, and the Paying Agent .hall, without further authorization or direction from
the County, ascertain the necessity for a clam or draw upon any Reserve Account Credit Instrument and provide notice
to the issuer of the Reserve Account Credit Instrument in accordance with its terms not Inter than three days (or such
appropriate time period as will, when combined with the timing of required payment under the Reserve Account Credit
Instrument, ensue payment under the Reserve Account Credit Instrument on or before the interest payment date) prior
to each interest payment date. Ifa disbursement is made under any such Reserve Account Credit Instrument, the County
may reinstate the maximum limits of such Reserve Account Credit Instrument immediately following such disbursement,
otherwise the amount of credit toward the Reserve Account requirement for such Reserve Account Credit Instrument
shall be appropriately reduced.
Furthermore, the County may at any time and from time to time cause to be deposited in the Reserve Account such
Reserve Account Credit Instrument and cause an appropriate amount to be withdrawn from the Reserve Account and
released to the County.
Moneys in the Reserve Account shall be used only for the purpose of the payment of maturing principal of or interest
on Bonds when the other moneys in the Sinking Fund are insufficient therefor, and for no other purpose. However,
upon the valuation of the Reserve Account in each year, if the moneys applied and allocated to the Reserve Account
(except the investment income thereon) exceed the amount required, such excess may be withdrawn and released to the
County. If the Reserve Account requirement shall at any time be satisfied in whole or in part with a qualifying letter
of credit and such letter of credit is about to expire or terminate, the County authorizes and directs the Paying Agent
to draw upon such letter of credit prior to its expiration or termination to the extent required to fully fund the Reserve
Account requirement unless a replacement Reserve Account Credit Instrument is in place or the Reserve Account is
otherwise fully funded in its required amount.
(5) Fifth. moneys in the Revenue Fund shall be applied to the payment of current debt service and reserve
requirements of any obligations of the County issued to finance the cost of additions, acquisition, extensions and
improvements to the System which are junior and subordinate to the hen of the Bonds on the Pledged Funds.
(6) Sixth, the balance of any moneys remaining in the Revenue Fund after the above required payments have been
made may be (a) deposited into a special fund to be known as the "Sewer and Water Renewal and Replacement Fund,"
which shall be used only for the purpose of paying the costs of extensions, enlargements. or additions to or the
replacement of capital assets of the System, and for emergency repairs thereto or (b) used by the County for any lawful
purpose.
No further deposits to the Sinking Fund, the Bond Amortization Account or the Reserve Account shall be required when
the aggregate sums deposited therein are and remain at least equal to the num of all of the principal and interest then due
and thereafter becoming due in all ensuing years for the Bonds then outstanding.
Flow of Funds under Senior Lien Bond Resolution
1I
While my Senior Lies Bonds aro outstanding, the gloss revenues and receipts of the System pledged for payment of
the Senior Lien Bonds. which include the Revenues pledged in connection with the Bonds, will be utilized by the County
in the following order of priority before the Revalues are available under the Resolution for payment of the Bonds:
(1) First, the County shall transfer each month to the Sinking Fund for the Senior Lien Bonds created under the
Senior Lien Bond Resolution, if any Senior Lien Bonds are then outstanding. the amount required by the Senior Lien
Bold Resolution to be deposited therein monthly to provide for timely payment of the principal and interest on the Senior
Lien Bonds cunestly becoming due and payable.
(2) Second, while any Senior Lien Bonds are outstanding, the County shill transfer and deposit to the credit of the
reserve account in the sinking fund for the Sasior Lien Bonds under the Senior Lies Bond Resolution, the sum of 1/12
of 10% of the 'Mtutimum Bood Service Requirement,' u that phrase is defined in the Senior Lies Bond Resolution,
on the Senior Lien Bonds until such aims as the funds and investments therein shall equal such Maximum Bond Service
Requirement, and monthly thesesier such amount as may be necessary to maintain in such reserve ac amt the Maximum
Bond Service Requirement, but not exceeding 1/12 of the Maximum Bond Service Requirement monthly.
(3) Third, the County shall transfer in each month to the Operation and Maintenance Fund the amount required to
be deposited therein to pay the Operating Expenses due or to become due for such month.
(4) Fourth, while any Senior Lien Bonds are outstanding, the County shall transfer and deposit into a special fund
to be known as the 'Indian River County Water and Sewer System Renewal and Replacement Fuad,' an amount equal
to 1/12 of 5% of the groes revenues of the System (excluding Impsct Fees) for the preceding Fiscal Year. Such fund
shall be used only for the purpose of paying the cost of extensions, enlargements, improvements or additioos to or the
replacement of capita assets of the System, and for emergency repairs thereto. Impact Fees on deposit in the Renewal
and Replacement Fund shall only be used to pay the cost of extensions, enlargements, improvements, or additions to
the System made necessary by the inclusion of new customers of the System.
(5) Fifth, the balance of any moneys remaining after the above required payments have been made may be used
by the County for any lawful purpose.
ADDITIONAL FINANCING ARRANGEMENTS
Senior Lien Bonds
The County hu issued and sold to FmHA: (a) $9,200,000 in principal amount of its Water and Sewer Revenue Bonds,
Series 1986; and (b) $450,000 in principal amount of its Water and Sewer Revenue Bonds, Series 1986A (collectively the
"Senior Lien Bonds"). The County pledged and granted a lien on the revenues and receipts of the System for payment of
these bonds, which pledge and lien is senior to the pledge of, and lien on, the Net Revenues of the System for payment of
the Bonds.
Other than the Senior Lien Bonds, the County shall not issue any other bonds or obligations senior to or having priority
to the Net Revenues of the System pledged for payment of the Bonds.
Parity Bonds
In May 1989, the County issued $6,510,000 Water and Sewer Revenue Refunding Bonds, Series 1989, (the "Series 1989
Bonds"). The Series 1989 Bonds continue to be outstanding and are on a parity with the Series 1991 Bonds.
Additional Parity Bonds, payable on a parity with the Series 1991 Bonds and the Series 1989 Bonds ("Additional Parity
Bonds"), may be issued from time to time to finance any portion of the costs of the construction and/or acquisition of
additions, extensions and improvements to the System, or of any physically separate water or sewer system declared by
resolution of the Board to be part of the System, or for refunding purposes.
Before issuing any Additional Parity Bonds, them shall have been obtained and filed with the County a certificate of an
independent firm of certified public accountants of suitable experience and responsibility:
11
(i) stating that the books and records of the County relating to the collection and receipt of the Revenues and the
Operating Expenses have been audited by them for the Fiscal Year immediately preceding the date of sale of the
proposed obligations or for any twelve (12) consecutive month period out of the eighteen (18) consecutive months
immediately preceding the date of ale of the proposed obligations;
(ii) setting forth the Revenues, the Uniform Chugs, the Operating Expenses and the Net Revenues for the audited
period referred to in (i) above, with respect to which such certificate is made; and
(iii) stating that: (a) during such audited period, the County was in compliance with the rate covenant previously
discussed; and (b) the Net Revenues, as adjusted u hereinafter provided, were equal to at least 1.20 times the largest
amount of principal and interest which will mature and become due in any Fiscal Year thereafter on all Bonds then
outstanding, including the proposed Additional Parity Bonds; and when the Revenues include receipts and revenues in
addition to Uniform Charges, the Uniform Changs las Operating Expenses, adjusted u hereinafter provided, were
equal to at lead 1.00 times the largest amount of principal and interest that will mature and become due in any Fiscal
Year thereafter on all Bonds outstanding, including the proposed Additional Parity Bonds.
For purposes of (w) above: (A) Revenues, Uniform Charges, and Operating Expenses may be adjusted so as to fairly
represent the operation of the System, provided that the amount and a detailed reason for each such adjustment is set
forth in such certificate; (B) Net Revenues also may be adjusted for (i) the pro form effect of rates implemented prior
to issuance of the Additional Parity Bonds, (ii) new customers added to the System during the ted period, (w) already
existing occupied residences or operating business establishments which will be connected to the System upon completion
of projects under construction or to be funded with bond proceeds, and (iv) Net Revenues attributable to customers for
whom Impact Fees have been paid, and which will be connected to the System upon completion of projects under
construction or to be funded with bond proceeds (provided that while the Series 1989 Bonds or the Series 1991 Bonds
are outstanding and the 1989 Bond Insurance Policy or the 1991 Bond Insurance Policy is in effect, not more than 40%
of the Net Revenues described in this subclause (iv) shall be used as an adjustment under this clause (B) without the
consent of the Bond Insurer); and (C) any amounts owed by the County to the issuer of a Reserve Account Credit
Instrument as a result of a draw thereon, as appropriate, shall be added to the principal and interest payable thereon on
the Bonds to determine compliance with the foregoing teat.
For purposes of the foregoing, Senior Lien Debt service, Required Renewal Fund Payments and Senior Lien Bonds
Reserve Account Payments shall be treated u Operating Expenses. All or any part of the certificate required under the
second paragraph of this subsection may be rendered by consulting engineers, consultants or other persons with requisite
knowledge and experience who are not reasonably objected to by the Bond Insurer.
Additional Parity Bonds may not be issued at any time at which the County is in default in performing any of the
covenants and obligations under the Resolution, or all payments herein required to have been made into the accounts and
funds, as provided under the Resolution, have not been made to the full extent required.
The foregoing conditions shall not apply with respect to Additional Parity Bonds the proceeds of which will be used to
complete a project a substantial portion of the cost of which has been or will be paid out of the proceeds of Bonds issued
under the Resolution.
The County covenants for the benefit of the Registered Owners of the Series 1991 Bonds and any other Bonds issued
and outstanding under the Resolution that the County shall, at the time of issuance of any Additional Parity Bonds, make
a deposit to the Reserve Account in the Sinking Fund created under the Resolution so that the Reserve Account shall have
a cash and investments at such time equal to the maximum amount of principal and interest on all outstanding Bonds
(including the Additional Parity Bonds and giving effect to the retirement of any Bonds being refunded with proceeds of the
Additional Parity Bonds) becoming due in any ensuing fiscal year, unless the Bond Insurer shall agree otherwise.
The County presently has outstanding an aggregate of $3,900,000, 6 7/8 % Water Revenue Bonds, Series 1988,
Anticipation Notes due December 1, 1991 (the "Series 1988 Notes"). The Series 1988 Notes were issued in anticipation
of the receipt by the County of the proceeds from the future sale of its Water Revenue Bonds, Series 1988 which were
authorized in an amount up to $4,000,000, but were not issued. Rather, the County intends to fund the retirement of the
Series 1988 Notes from a portion of the proceeds of the sale of the Series 1991 Bonds. See "PURPOSE OF THE SERIES
1991 BONDS" and "ESTIMATED SOURCES AND USES OF FUNDS."
FurURE FINANCING ARRANGEMENTS
During Fiscal Years 1992 and 1993 the County anticipates that it will expend the Sea Oaks Wastewater Plant at an
estimated cast of $2.5 Million and conatntet rouse transmission lines at an estimated cod of $3 Million. A potion of the
cost of these two projects will be financed with the proceeds derived from the issuance and sale of Additional Parity Bonds.
MUNICIPAL BOND INSURANCE
Bond Insurance
Coocunandy with the isatsoce of the Series 1991 Bonds, FinaocW Guaranty Insurance Company ("Financial Guaranty')
will issue its Municipal Bond New Issue Immo Policy for the Bonds (the 'Policy'). The Policy unoonditiooally
guarantees the payment of that potion of the principal of and interest on tie Bonds which hu become due for payment, but
shall be unpaid by reason of nonpayment by the County. Financial Guaranty will make such payments to Citibank N.A.,
or its successor u its agent (the 'Fiscal Agent'), on the later of the date on which such principal and interest is due or on
the business day next following the day on which Financial Guaranty shall have received telephonic or telegraphic notice,
subsequently confirmed in writing, or written notice by registered or certified mail, from an owner of the Series 1991 Bonds
or the Paying Agent of the nonpayment of such amount by the County. The Fiscal Agent will disburse such amount due
on any Series 1991 Hood to its owner upon receipt by the Fiscal Agent of evidence satisfactory to the Fiscal Agent of the
owner's right to receive payment of the principal and interest due for payment and evidence, including any appropriate
• instruments of assignment, that all of such owner's rights to payment of such principal and interest shall be vested in
Financial Guaranty. The term 'nonpayment" in respect of a Series 1991 Bond includes any payment of principal or interest
made to an owner of a Series 1991 Bond which hu been recovered from such owner pursuant to the United States
Bankruptcy Code by a trustee in bankruptcy in accordance with a final, nonappealable order of a court having competent
jurisdiction.
The Policy is non -cancelable and the premium will be fully paid at the time of delivery of the Bonds. The Policy covers
failure to pay principal of the Series 1991 Bonds on their respective stated maturity dates or dates on which the same shall
have been duly called for mandatory sinking fund redemption, and not on any other date on which the Series 1991 Bonds
may have been otherwise called for redemption, accelerated or advanced in maturity, and covers the failure to pay an
installment of interest on the stated date for its payment.
Generally, in connection with its insurance of an issue of municipal securities, Financial Guaranty requires, among other
things, (i) that it be granted the power to exercise any rights granted to the holders of such securities upon the occurrence
of an event of default, without the consent of such holders, and that such holders may not exercise such rights without
Financial Guaranty's consent, in each case so long as Financial Guaranty has not failed to comply with its payment
obligations under its insurance policy; and (ii) that any amendment or supplement to or other modification of the principal
legal documents be subject to Financial Guaranty's consent. The specific rights, if any, granted to Financial Guaranty in
connection with its insurance of the Series 1991 Bonds are set forth in the description of the principal legal documents
appearing elsewhere in this Official Statement. Reference should be made as well to such description for a discussion of
the circumstances. if any, under which the County is required to provide additional or substitute credit enhancement, and
related matters.
This Official Statement contains a section regarding the ratings assigned to the Series 1991 Bonds and references should
be made to such section for a discussion of such ratings and the basis for their assignment to the Bonds. Reference should
be made to the description of the County for a discussion of the ratings, if any, assigned to such entity's outstanding parity
debt that is not soured by credit enhancement.
Financial Guaranty is a wholly-owned subsidiary of FGIC Corporation (the "Corporation"), a Delaware holding
company. The Corporation is a wholly-owned subsidiary of General Electric Capital Corporation ("GE Capital"). Neither
the Corporation nor GE Capital is obligated to pay the debts of or the claims against Financial Guaranty. Financial Guaranty
is a monoline financial guaranty insurer domiciled in the State of New York and subject to regulation by the State of New
York Insurance Department. As of March 31, 1991, the total capital and surplus of Financial Guaranty was approximately
S502.600,000. Financial Guaranty prepares financial statements on the basis of both statutory accounting principles and
10
11
generally accepted accounting principles. Copies of such frmocial statements may be obtained by writing to Financial
Guaranty at 175 Water Street, New York, New Yak 10038, Attention: Communications Department (telephone number:
(212) 607-3000) or to the New Yak Stats Insurance Department at 160 West Broadway, 18th Floor, New York, New York
10013, Attention: Property Companies Burma (telephone number: (212) 602-0389).
DEBT SERVICE SCHEDULES
The following table presents the annual debt service requirements of the County for the Series 1991 Boody:
Total
Year &aft
illinklEdifi MINIMl Its
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
i
The following table preempts the annual debt service requiremm1a of the County for the Series 1991 Bonds, the Series
1989 Bonds, and the Senior Lim Bonds, princip l and interest aggregated m eec h column:
Yen' Fading Series Series Senior
Seelsher 3S- Mks& 1212 Limbo& Did
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
Total
:543,996 $579.100
543,820 579,868
543,260 579,372
547,310 579,662
545,613 579,688
543,513 579,550
546,058 579,041
547,835 579,368
543,835 579,374
544,410 579,059
544,050 579,423
542,950 579.516
546,110 579,231
543,160 579,231
544,470 579,477
544,670 580,058
543,760 579,154
546,740 579,815
543,240 580,041
543,630 579,725
547,540 579,967
544,600 579,610
545,910 579.754
543,910 579,242
545,790 579,074
545,450 579,400
547,890 579.856
547,740 579,699
579,715
580,054
579,452
579,909
579,525
579,186
579,835
579,465
579,862
580.026 580.026
515.260.528 522.023.72(
12
THE SYSTEM
General
The County's water and sewer system consists of all water and sewer systems now owned and operated by the County,
together with any and all improvements, extensions and additions thereto hereafter constructed or acquired, and any
physically independent water or sewer system hereafter mode a part of the System by resolution of the Board together with
any and all improvements, calamine, and additions thereto thereafter constructed or acquired (the "System"). The System
includes all property, real, personal and mixed, rights, powers, licenses, easements, rights of way, privileges, franchises
and all other property or interests in property of whatsoever nature, including but not limited to vehicles, rolling stock,
buildings, pipes, pumps, machinery, tants, main, conduits, meters and other equipment, used or useful in connection with
ownership, operation and maintemence of such water or sewer systems by the Calmly. The System provides water and sewer
services to a portion of the County's population, with a majority of the other County raids is being serviced by private wells
and septic tanks and the City of Vero Bach, Florida, which operates its own water and sewer systems.
The County presently operates three water planta, the south County pleat (South County Plant'), the North Beach plant
("North Beach Plant') and the Rivers Edge Plant. The water plants have a present nominal capacity of 6.75 minion gallon
per day (MGD'). The County hu expanded its storage capacity for the South County system to 5.3 million gallons. On
November 1, 1988, the County consummated the purchase of the business and assets of the North Bach Water Company
consisting of the North Bach Plant (with a treatment capacity of 500,000 gallons per day) and a distribution system in the
northern portion of the County ("North Beach Water System'). The North Bach Plant is currently being expanded by 1
million gallons per day for a total capacity of 1.5 million gallons per day when construction is completed. The County
anticipates construction of a 2 million gallon per day North County Reverse Osmosis Water Treatment Plant within the next
two years.
Presently, wastewater treatment and disposal service in the unincorporated portions of the County is provided by
approximately 20 wastewater treatment planta. Nine of these plenty with 3.985 minion gallons per day of treatment capacity
are owned and operated by the County. Of the facilities owned and operated by the County, the throe largest account for
nominal capacity of 3 million gallons per day ('MGD"). The remaining nix treatment plants, in the aggregate, account for
additional capacity of approximately 1.03 minion pikes per day. The County also has the right to have treated up to 1.39
MGD at the municipally -owned Vero Beach wastewater plant. The County is expanding each of the three largest plants from
a treatment capacity of 1 MGD to a capacity of 2 MGD, with the completion of such expansion expected in 2 years. The
County currently has a 2 million gallon per day South County Wastewater Treatment Plant under design. The plant is
scheduled for construction within 2 years.
System Staff
The System presently employs 102 persons. The System is managed by Terrance G. Pinto, Director of Utilities. It is
the opinion of management that the System enjoys excellent labor relations.
Water and Sewer Customers
The number of County water and sewer customers, expressed u the number of equivalent resident units ("ERUs"), for
the years 1986-91 is set forth below:
$j Houma
1986 9,827 8,824
1987 11,193 9,339
1988 12,005 9,552
1989 15,187 13,618
1990 17,615 16,874
1991 21,886 22,574
13
-4R
Rite Structure
Pursuant to the County Resolutions Nos.91-31 and 91-145, the County has established water and sewer charges for Fiscal
Years 1991, 1992 and 1993. The uniform water and sewer rates for Fiscal Years 1991, 1992, and 1993 are set forth below:
EtssalYsst
Water: 1991 1992 1993
Billing Charge 2.00 2.00 2.00
Base Facilities Charge - per ERU 6.20 8.70 9.20
Volume Charge per 1,000 gallons, per ERU
0-3,000 1.75 1.75 1.75
3,001-7,000 2.15 2.15 2.15
7,001 2.55 2.SS 2.55
Excess Volume Surcharge - Greater than
13,000 galloos per month per ERU 1.95 2.10 2.30
Sewer:
Billing Charge 2.00 2.00 2.00
Base Facilities Charge 7.60 12.25 13.50
Volume Charge - 85% of water use 3.35 3.35 3.35
Excess Volume Surcharge - Grater than
11,000 gallons per month per ERU 3.70 4.05 4.45
In addition to the charges shown above, users of the North Beach Water System aro subject to a $13 per ERU per month
surcharge ('North Beach Water Surcharge"). This surcharge generated approximately $291,867 in revenues in the County's
Fiscal Year ended September 30, 1990.
When the 1991 Project is placed into service, additional revalues will be received from generators of septage wastes
and owners of grease trap. For Fiscal Years 1992 and 1993 the County will charge tipping fees of $100 per 1000 gallons
and $105 per 1000 gallons, respectively, for all septage loads received at the 1991 Project (assuming septage haulers carry
full truck loads). The County estimates that tipping fees will generate a total of $144,000 during the first full year of the
operation of the 1991 Project. Certain portions of such revenues may be recovered from the City of Vero Beach with respect
to septage customers within the corporate limits of such city who subsequently become sewered. Revenues also will be
generated from an estimated $325 annual charge for each active grace trap within the County. The County estimates that
such charges will generate a total of $86,000 during the first full year of the operation of the 1991 Project.
Outstanding Debt
After the issuance of the Series 1991 Bonds and the retirement of the Series 1988 Notes, there will be an aggregate of
S25,245,000* principal amount of indebtedness of the County outstanding in connection with the System, consisting of (I)
$9,650,000 outstanding principal amount of the Senior Lien Bonds, (u) $6,375,000 outstanding principal amount of the Series
1989 Bonds, and (iii) $9,085,000* outstanding principal amount of the Series 1991 Bonds.
Selected Financial Data
The following table sets forth selected financial data for the System for the Fiscal Years ended September 30, 1987
through September 30, 1990. The data have been derived from the Water and Sewer System Fund and are summaries of
the audited financial statements for Fiscal Years ended September 30, 1987, September 30, 1988, September 30, 1989, and
September 30, 1990 examined by Coopers & Lybrand, Orlando, Florida. The table also includes estimated and budgeted
figures from 1991 and 1992.
*Preliminary subject to change.
1
SUMMARY OF BEM= = Ol THE SYSTEM
Meet Yens Ended Ssp-Mr 31,
(0mraAr ordain)
Audited Fidsated Budgeted
LIE its nit IPA Lin im
Revenues:
Uniform Charges (1) $3,118 $3,531 $4,314 $5,271 $5,850 $8,937
Interest Income 22,2 131 ¢M OM lit HQ
Total Revenues 3,491 4,067 4,989 5,935 6,708 9,777
Operating and Maintenance
Expenses:
Personal Services 684 800 1,374 1,855 2,466 3,297
Materials, Supplies,
and Other 1,083 1,557 1,770 2,608 2,800 3,489
Senior Lien Debt
Service - 492 492
Senior Lien Bonds
Renewal Funds _ 222 221
Total Expenses 1,767 2,357 3,144 4,463 6,055 7,613
Net Revenues Available
for Debt Service 81.724 81.714 , Ls sa Ly472 1122 Shia
Annual Debt Service:
Bonds Refunded in 1989 546 547 546 -
Series 1989 Bond - - 544 544 544
Series 1991 Bonds (2) 300
Total Debt Service S46 547 546 544 544 844
Coverage 3.16x 3.13x 3.38x 2.71x 1.20x 2.56x
(1) Does not include surcharges, septage fees, or grease trap fees.
(2) Includes the portion of uncapitalized interest. Preliminary, subject to change.
The County attributes the increase in revenues for the Fiscal Years ended September 30, 1987 through September 30,
1991 primarily to growth of the System and increases in Uniform Charges.
The County also receives Impact Fees in connection with the System. Impact Fees are not pledged as a security for the
Bonds. While the County may pledge the Impact Fees in the future, the County presently has no intention to pledge Impact
Fees as security for the Bonds. Impact Fees for the last five Fiscal Years ending September 30 and through August 30,
1991, are as follows:
Fiscal Impact Fees
Ism- Manmade of dollars)
1986 81,092
1987 1,739
1988 2,852
1989 932
1990 3,329
1991 (through August 30, 1991) .... 5,287
11
TBE 1991 PROJECT
The sale of the Series 1991 Bonds will provide funds for the construction of a Regional Sludge Facility (the '1991
Project') for the County. The 1991 Project is needed to meet the County's immediate and future needs for the treatment
and disposal of sludge (the solid or semi-solid residual by-product of the wastewater treatment plant proms). Abe (the
liquids and solids removed from domestic septic tanks and portable toilet facilities). and prase (the material taken from
commercial grease traps typically found at food processing facilities and restaurants). The County has determined that the
most cost-effective and implementable treatment approach is one regioeal facility treating all three of these waste types. For
a more complete description of the 1991 Project, see Appendix D attached hereto. The information under this caption and
in Appendix D hes been furnished by Camp, Dresser & McKee Inc., the preparer of the Engineers' Report. The County
makes no representation with respect to Camp, Dresser & McKee Inc. or the Engineers' Report attached se Appendix D.
THE GRANT
A grant (the 'Grant') from the Florida Department of Environmental Regulation ('FDER') and the Environmental
Protection Agency CEPA') will be used to pay a portion of the costs relating to the 1991 Project. The final amount of the
Grant is subject to review and approval by FDER and EPA. The County believes that the final amount of the grant will be
approximately 81,200,000.
TAX EXEMPTION
Opinion of Bond Courted
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 Hoods from groes 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 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 interest 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.
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 covecanted in the Resolution to comply with the requirements of Sections 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. Officials of the
County have executed a certificate concerning the use of the proceeds of the Series 1991 Bonds from gross income for
Federal income tax purposes.
1!
Corporate Alternative Minimum Taxes; Environmental Tax; Brands 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 abject 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 corporate purchasers of the
Series 1991 Bonds should consult their profesaiooal tax advisors concerning the potential impact of receipt of interest income
on such bonds upon their Federal tax liability.
Financial Institutions' Cab of Carrying Tau -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 nor been designated by the County as 'qualified tax-exempt obligations" for purposes of
Section 265 of the Code.
Original Isaue Discount
In the opinion of Bond Counsel, under existing law, the original isms discount in the selling price of each Series 1991
Bond maturing in the years May 1, and May 1, , 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 (u) 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),
Tess (iii) any interest payable on such Series 1991 Bond during such accrual period. The amount of original issue discount
so accrued 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
corporations 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.
LITIGATION
In the opinion of the County Attorney, no legal proceedings are pending or threatened that materially affect the County's
ability to perform its obligations to the holders of the Series 1991 Bonds or that materially affect the financial condition of
the System.
OA
11
In the opinion of the County Attorney, there is no litigation or controversy of any nature now pending or, to the
County's knowledge, threatened to retrain or enjoin the issuance, sale, execution or delivery of the Series 1991 Bonds or
in any way contesting the validity of the Series 1991 Bonds or any proceedinp of the County taken with respect to the
authorization, sale or insane of the Series 1991 Bonds or the pledge or application of any moneys provided for the payment
of the Series 1991 Bonds.
RATINGS
Fitch Investors Service, Inc., Moody's Investors Service and Standard & Poor's Corporation have assigned ratinp of
"AAA', "Ana" and "AAA", respectively, to the Series 1991 Bonds, with the trade shmdiog that, upon delivery of the Series
1991 Bonds, the Financial Guaranty Policy will be issued by Financial Guaranty. Such ratings reflect only the views of such
organizations and any desired ettplanstioo of the significance of such Wisp should be obtained from the rating agency
furnishing the same, at the following addresses: Fitch Investors Service, Inc., One State Street Plans, New York, New York
10004; Moody's Investors Service, Inc., 99 Church Street, New York, New York 10007; Standard & Poor's Corporation,
25 Broadway, New York, New York 10004. Generally a rating agency bases its rating on the information and materials
furnished to it and on investigations, studies and assumptions of its own. There is no assurance such ratings will continue
for any given period of time or that such ratings will not be revised downward or withdrawn entirely by the rating agencies,
if in the judgment of such rating agencies, circumstances so warrant. Any such downward revision or withdrawal of such
ratings may have an adverse effect on the market price of the Series 1991 Bonds.
UNDERWRITING
The Series 1991 Bonds are being purchased by Raymond James & Associates, Inc. (the 'Underwriter"), subject to
certain terms and conditions set forth in a bond purchase agreement between the County and the Underwriter, including the
approval of certain legal matters by Bond Counsel and the existence of no material change in the affairs of the County from
those set forth in this Official Statement.
The aggregate purchase price payable by the Underwriter is $ plus accrued interest on the Series 1991
Bonds from October 1, 1991 to the date of delivery of the Series 1991 Bonds. The Series 1991 Bonds are offered for sale
to the public at the price set forth on the cover page of this Official Statement. The Series 1991 Bonds may be offered and
sold to certain dealers at prices lower than such offering prices, and such public offering prices may be changed, from time
to time, by the Underwriter.
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 & Sinop, Boca Raton,
Florida, Bond Counsel, whose approving opinion in substantially the form attached hereto u 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 AND SOURCES OF PAYMENT," "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 insofar as such portions and such language
summarize or describe the terms of 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, Carlton, Fields, Ward, Emmanuel, Smith & Cutler, P.A., West Palm Beach, Florida.
MISCELLANEOUS
The references to, and excerpts of, all documents referred to herein do not purport to be complete statements of the
provisions of such documents and reference is directed to all such documents for full and complete statements of all matters
of fact relating to the Series 1991 Bonds, the security for the payment of the Series 1991 Bonds, and the rights and
obligations of Registered Owners thereof.
11
11
The informstioo contained in this Official Statement has been compiled from official and other sources deemed to be
reliable and, while not guaranteed as to completeness or accuracy, is believed to be correct as of this date.
Any statements made in this Official Statement involving matters of opinion or estimates, whether or not so expressly
stated, ars set forth u such and not as representation of fact, and no representation is mode that any such estimates will be
realized. Neither this Official Statement nor any statement which may have been mode verbally or in writing is to be
construed as a contract with the holders of the Series 1991 Bonds.
ADDMONAL INFORMATION
The brief descriptions of the Resolution, the Series 1991 Bonds, the Senior Lien Bood Resolution and other documents
pertaining to the Series 1991 Bands contained in this Official Statement are qualified in their entirety by reference to the
originals of such documents, copies of which aro available from Iodise River County, Florida, 1840 2Sth Street, Vero Beach,
Florida 32960, Attention: Joseph A. Baird, during the period of the initial offering of the Series 1991 Bonds.
AUTHORIZATION OF OFFICIAL STATEMENT
The delivery of this Official Statement bas been duly authorized by the Board of County Commissioners of the County.
At the time of delivery of the Series 1991 Bonds, the Chairmen of the Board of County Commissioners and the County
Administrator, acting on behalf of the County, will furnish a certificate to the effect that nothing his come to their attention
which would lead them to believe that the Official Statement, u of its date and u of the delivery of the Series 1991 Bonds,
contains an untrue statement of a material fact or omits to state a material fact which should be included therein for the
purposes for which the Official Statement is intended to be used, or which is necessary to make the statements contained
therein, in the light of the circumitaoces under which they were mode, not misleading.
INDIAN RIVER COUNTY, FLORIDA
Richard N. Bird, Chairman
Board of County Commissioners
James E. Chandler
County Administrator
06180.2
Appendix A
Indian River County, Florida General Information
Appendix A
Indian River County, Florida General Information
The following information hu 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 AND SOURCES
OF PAYMENT."
1149
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 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.
N_ Office Tenn 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
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.
06180.2
A-1
The 1990 Census population of the County was 90,208, an increase of 50.6% over the 1980 Census
population of S9,896. Vero Beach, the largest city in the County and the county seat, hada 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.
Int Population
1930 6,724
1940 8,957
1950 11,872
1960 25,309
1970 35,992
1980 59,896
1985 76,442
1986 80,023
1987 83,515
1988 87,512
1989 89,000
1990 90,208
Source: U.S. Census and University of Florida, Bureau of
Economic and Business Research.
/6190.2
A-2
96 Annual Increase
3.32
3.25
11.32
4.22
6.64
2.76
4.68
4.36
4.79
1.70
1.35
4
While the population of the County hu been steadily increasing, so has the median age of the resident
population. The number 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.
An Group Population _26
0-14 13,944 15.9
1S-44 32,874 37.6
45-64 19,992 22.9
6S+ 20,702 23.6
Components of Population Change
1980 Census 59,896
1990 Census 90,208
Percent Change 50.0%
Components of Change due to Natural Increase 573
Components of Change due to Net Migration 29,739
Percentage of Change due to Natural Increase 1.89%
Percentage of Change due to Net Migration 98.11 %
Source: University of Florida, Bureau of Economic and Business
Research.
Industry
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
/6180.2
A-3
11
11
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, cabinets and millwork plants, machine shops,
welding shops, sheet metal fabricators, mattress ticking, construction, architectural and 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,
precut 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 u 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:
Catesory 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
/6100.2
A-4
A
A
Services 30.2
Government 6.7
100.0%
Source: State of Florida, Department of Labor and Employment
Security.
Major employers in Indian River County and their approximate current level of employment as of July,
1990 were as follows:
Establishment product or Service
Indian River County School Dist. School system
Indian River Memorial Hospital Medical Services
Indian River County County government
Publix Corporation Retail grocery
Sun Ag., Inc. Citrus & agriculture
City of Vero Beach City government
Grave Brothers, Inc. Citrus
Humana Hospital Sebastian Acute care facility
Gracewood Fruit Co. Citrus
Hale Groves Citrus
Dodgertown Complex Convention Center,
Baseball
Johns Island Residential Resort
WalMart Retail Merchandise
Source: Indian River County.
/6180.2
A-5
Emnlovment
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 Annual
School Unemploy- Unemploy- Average
En- meat ment Unemploy
Fiscal Per Capita roll- Rate- Rate- Rate -
Year Population Income ment County State National
E --11)___ ...12) (3) (41 (4) _ (4)
1981 63,100 12,807 9,206 8.9 6.8 7.6
1982 66,915 12,582 9,426 12.4 8.2 9.7
1983 69,414 13,230 9,434 14.0 8.6 9.5
1984 74,162 14,174 9,466 9.0 6.3 7.2
1985 76,442 15,690 9,752 9.0 6.2 7.3
1986 80,023 16,250 10,214 9.2 5.8 7.1
1987 83,515 17,440 10,442 8.7 5.4 6.4
1988 87,512 17,997 10,802 7.2 5.0 5.7
1989 89,000 a/a 10,930 6.5 5.5 5.3
1990 90,208 n/a 11,516 10.0 5.8 5.4
Sources: (1) U.S. Census and Bureau of Economic and Business Research. University of Florida.
(2) U.S. Department of Commerce, Bureau of Economic Analysis, Unpublished Data.
(3) Indian River County School Board, Peak Enrollment.
(4) Florida Department of Labor and Employment Security Bureau of Research and Information.
A-6
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).
Hath 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
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 196 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 for 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.
MI10.2
A-8
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
11111 ad valorem tax levy of 10.0 mills per 51,000 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:
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INDIAN RIVER COUNTY, FLORIDA
ASSESSED VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Real ProEty qty ToW
Fiscal
Year
Value Assessed Value Assessed Value Assessed Ended
1981 2,028,590,110 174,022,902 2,202,613,030
1982 2,442,835,490 200,607,110 2,643,442,600
1983 2,984,489,960 170,388,980 3,155,078,940
1984 3,311,355,000 181,269,850 3,492,624,850
1985 3,534,024,949 187,757,610 3,721,782,559
1986 3,781,716,839 229,364,177 4,011,081,016
1987 3,974,458,157 259,733,289 4,234,191,446
1988 4,387,121,880 280,414,239 4,667,536,119
1989 4,570,700,250 303,141,158 4,873,841,408
1990 4,954,816,716 321,397,153 5,276,213,869
Source: Indian River County Property Appraiser
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INDIAN RIVER COUNTY, FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 1990
Percent
1988 of Total
Assessed Assessed
Taxpayer Type of Business Value (1) Value
Sun Ag., Inc. Agriculture S 68,730,354 1.30%
Southern Bell Telephone utility 65,887,570 1.25
John's Island, Inc. Lind development 44,305,320 .84
General Development Land development 34,256,920 .65
Corporation
Adult Communities Health care 32,028,010 .61
Total Services
Florida Power Electric utility 31,090,940 .S9
and Light
Graves Brothers Agriculture 20,656,000 .39
Pat Corrigan Agriculture 16,607,770 .31
Ro-Ed Agriculture 14.946.120 42
(1) Total assessed value $5,276,213,869
Source: Indian River County Property Appraiser
116180.2 A-14
S328.609.004 6�
Appendix B
General Purpose Financial Statements and
Independent Auditors' Report for the
Fiscal Year Ended September 30, 1990
III
Coopers
&Lybrand
candied public accountants
Report of Independent Accountants
The Honorable County Commissioners and
Constitutional Officers
Indian River County, Florida
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 ace 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 finanq;p; state-
ments are tree 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.
e, 94 ee,/,y_...„..ze
Orlando, Florida
January 31, 1991
1
I
INDIAN SIM COUNTS, pLORIDA
ALL FUND SIMS AND ACCOUNT GROUPS
September 30. 1990
GOVU'RIRRRRAL IIIMD TIPP
SPECIAL OPT CAPITAL
ASSETS GENERAL —MEM— SMVICE —MEM-
Equity
RODEquity in pooled Cash and Investeents 113,1511,449 $15,369,641 $ 4455.616 11).567.9)6
Accounts receivable - net 153,676 356,176 60.000
Special assessments receivable - deterred 212.076 1,743.015
Due from other funds ),19).495 141.571 21.966 -
Due trop other governments 1,244.976 4.496 - 297,963
Interest receivable 302,900 121.662 )4,14) 41.467
Inventories 41.121 - -
Prepald insurance -
Reetricted assets:
Cash and investments:
Sinking Funds
Renewal and replacement and capital projects
Customer deposits
Capital construction
Impact tees receivable
Special assessments receivable
Advance to other funds
Property, plant and equipment
ACCuaulated depreciation
Unamortlted bond costs
Intangible assets
Amount available in debt service funds
Amount to be provided for retirement
of general long-term debt
Total Asset*
LIASILITIIS. rump MITT
AND MOM CREDITS
OP
;11,101.621 614.213 4299 ;12.955.041 61].9764
Liabilities:
Accounts payable f 969,003 $ 417,192 f 2,240 $ 1.752.549
Retainage payable - 52.969 - 1,162.540
Claims payable
Notes payable - current portion
Capital leases - current portion - -
Due to other governments 1,250.579 20.191
Deterred compensation -
Other deposits neld In escrow 105,669 -
Deterred revenues 35.000 212.076 6.615,015
Due to other funds 64,046 1,501,7)) - 1,500.000
Payable from restricted assets:
Accounts payable
Retainage payable
Accrued interest payable
Sonde payable - current portion
Closure costs payable
Customer deposits
Prepaid impact tees
Advance from caner funds 607,500
Accrued compensated absences
Capital leases
Bond anticipation notes payable
Bonds payable - net of discounts
Total liabilities 2,464,297 2.211,168 9,424,755 1,435.089
•
Fund Equity and Other Credits:
Investment in general fired assets
Contributions
Retained earnings:
Reserved
Uncesarvad
Fund balances:
Reserved 40,000 - 7,530,285 9,539.279
Unreserved 15,597,111 14.002,261
Total fund equity and other
credits 15.637,111 14.002,261 ),5)0.28S 9,579,279
Total Liabilities, Fund Equity and
Other Credits ;16.101.621 ;16.212.442 ;12.915.040 611.9 61
2
II
PIDUCIARY
PROPRIETARY FUND TYPES FUND ?YPSS ACCOUNT GROUPS
GOIMAL TOTALS
INTERNAL TRUST AND GENERAL LONG -?ERM (MEMORANDUM
OIT11PRIU SEMVICE AGENCY FIXED ASSETS DES? ONLY)
$ 6,000.609 $ 1.804,457 S 3.775,411 $ S - $ 57.832.630
967,742 171 3,290 1,441,057
- - 0,955.091
54.399 - 3.418.450
28,716 20,102 - 1,596.655
139,237 - 7,997 654,596
291,592 164,914 11,020 515,644
- 36,744 - 36,744
3,732,283 3.732.293
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
75,113,599 277,224 62,901,845 138.292,667
(9,857.0221 (172,7801 - 110,030.610)
476,093 - 476,093
240,894 - 240.894
3,530.265 3.530.285
23,962.037 23,962.037
589.229 ; 2.130.924, ; 3.797.738 562.901.845 ;27.492.124 ;246.796.379
$ 459,690 $ 47,370 $ 50,201 S $ S 3.726,333
1,235,509
- 1,113,947 1,113,947
237,515 - 237,515
30,820 - 30.020
- 1,294,860 2.565,637
- 532,151 532,151
280,445 1,643,742 2,029,856
7,938 9,070,029
- 103,833 221,846 3,418.458
702,162
75,233
516,027
647,000
480,178
396,565
260,000
117,801
3,900,000
29,172,330
19,066
37,283,704 1,284.224 3,750,880
38,547,769
1,324.118
12,073,594
636,643
209,957
62,901,845
702,162
75,233
516,027
647,000
480,178
396,565
260,000
607,500
1,066,328 1,203,195
468,293 468,293
3,900,000
25,957,701 55,130,031
27,492,322 88,346,439
62,901,845
39,184,412
1,324,118
12,283,551
13,109,564
16.858 29,646,450
51.945.401 046.600 46.650 62,901 845 158,449,940
;09.229.18% 5 2.130.82A ) 3.797.7341 ;62.401.84% 527.492.324 $246.796.379
The accompanying notes are an integral pelt ut the Itnanctal statements.
3
wN
11
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 15,779,029
Excess of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Lease purchase proceeds
Bond proceeds
Total other financing 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
4
7,163,406 (720,104)
206,715 5,613,140
(5,198,573) (7,931,320)
16,604 -
(4,975,254) (2,318,180)
2,188,152 (3,038,284)
13,440,610 17,049,114
8,569 (8,569)
S 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 $ - 5 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
3,530.285 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
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
6
GENERAL
BUDGET
VARIANCE
FAVORABLE
ACTUAL jUNFAVORABLE)
$ 26,915,073 $ 28,043,199 $ 1,128,126
173,700 209,899 36,199
4,721,819 4,831,624 109,805
3,441,512 3,085,754 (355,758)
319,000 422,209 103,209
2,340,130 3,200,015 859,885
37,911,234 39,792,700 1,881,466
10,953,212 10,258,989 694,223
17,299,743 17,183,086 116,657
372,762 292,845 79,917
191,780 97,482 94,298
137,254 123,112 14,142
1,707,376 1,545,422 161,954
3,647,764 2,959,179 688,585
139,410 130,399 9,011
44,743 38,780 5,963
34,494,044 32,629,294 1,864,750
3,417,190 7,163,406 3,746,216
70,639
(5,700,367)
16,604
206,715
(5,198,573)
16,604
(5,613,124) (4,,975,254)
136,076
501,794
637,870
S (2,195,934) 2,188,152 S 4,384,086
13,440,610
8,569
15,637,331
SPECIAL REVENUE
BUDGET
$ 7,360,912
2,516,401
1,738,374
117,310
1,073,412
12,806,409
793,727
6,083,262
12,946,859
1,144,984
566,485
146,000
36,954
21,718,271
(8,911,862)
5,608,360
(8,010,177)
(2,401,817)
S(11,313,679)
VARIANCE
FAVORABLE
ACTUAL UNFAVORABLE
$ 7,686,647
13,775
2,977,570
2,280,810
204,423
1,895,700
15,058,925
524,121
5,590,449
7,919,765
1,157,384
503,820
59,163
24,327
15,779,029
(720,104)
5,613,140
(7,931,320)
(2,318,180)
$ 325,735
13,775
461,169
542,436
87,113
822,288
2,252,516
269,606
492,813
5,027,094
(12,400)
62,665
86,837
12,627
5,939,242
8,191,758
4,780
78,857
83,637
(3,038,284) 8,275.395
17,049,114
(8,569)
S 14002.261
DEBT SERVICE
BUDGET
VARIANCE
FAVORABLE
ACTUAL (UNFAVORABLE)
$ 1,564,826 $ 1,557,403 $ (7,423)
1,323,944
915,711 1,370,257 454,546
1,276,833 (47,111)
3,804,481 4,204,493 400,012
1,954,063 1,847,487
1,866,749 1,781,498
3,820,812 3,628,985
(16,331) 575,508
430,270 430,270
(28,000) (11,306)
402,270
$ 385.939
Continued
106,576
85,251
191,827
591,839
16,694
418,964 16,694
994,472 S 608,533
2,535,813
S 3.530.285
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 Revenued 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
1,476,160
6,738,456
16,774,974
16,774,974
212,700
769,610
1,185,711
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 S 7.290,611
7,301,143
S 9,539.279
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
60,074,869 65,794,574 5,719,705
11,746,939 10,783,110 963,829
23,383,005 22,773,535 609,470
372,762 292,845 79,917
13,138,639 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
22,879,874 16,774,974 6,104,900
82,913,001 68,812,282 14,100,719
(22,838,132) (3,017,708) 19,820,424
12,936,703 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
;(18,176.149)
5,400,184 738,201
2,382,476 S 20.558.625
40,326,680
S 42.709.156
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 S 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 15555,057
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 8,263 704,234
Nonoperating Revenues (Expenses):
Interest income 1,580,007 51,291 1,631,298
Operating grants 16,281 - 16,281
Gain on disposal of equipment 12,678 - 12,678
Interest expense (1,556,861) - (1,556,861)
Amortization expense (107,437) - (107,437)
Loss on disposal of equipment (3,553) (3,553)
Total nonoperating revenues (expenses) (58,885) 51,291 (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 513.397,712 S2957 S13,607,669
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
Sources of Working Capital:
From operations:
Net income
Items not affecting working capital:
Amortization
Depreciation
Total from operations
Decrease in restricted assets
Disposal of fixed assets- net
Decrease in other assets
Increase in current liabilities payable
from restricted assets
Increase in other liabilities
Increase in revenue bonds payable
Increase in contributions
Total sources of working capital
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
Net Increase in Working Capital
Continued
ENTERPRISE
INTERNAL
SERVICE
TOTALS
(MEMORANDUM
ONLY)
$ 707,788 $ 482,762 $ 1,190,550
122,438
3,494,765
4,324,991
1,812,581
60,974
48,381
98,326
31,402
9,650,000
7,438,551
23,465,206
3,353,615
8,421,907
33,108
1,003,546
30,819
9,200,000
700,000
22,742,995
122,438
32,007 3,526,772
514,769 4,839,760
1,812,581
526 61,500
48,381
98,326
5,974 37,376
9,650,000
23,623 7,462,174
544,892 24,010,098
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
S 722.211 S 482.478 S 1,204,_689
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 ONLYI
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
Claims payable (698,697) (698,697)
Notes payable 69,039 69,039
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
Net Increase in Working Capital ; 722.211 ; 482.478 p 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
Rn
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 le 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,
excluded from this report:
have been
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 Projects 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-
nomc 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
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 -Ter■ 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, ma.intains 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
11
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 511,884 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 i* aviceuntab1e for and thus maintains ganata1 fixed asses
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
1e
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 Years
Building and improvements 25 - 40
Machinery and equipment 3 - 10
Utility distribution systems 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.
111
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
i'
11
mi
rq,''.
INDIAN RIVER COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30, 1990
1. Summary of Significant Accounting Policies - Continued:
0. Budgets and Budgetary Accounting - Continued
(6) Revisions made to the original budget by the Board for
revenues were as follows:
General Fund
Special Revenue Funds:
Road Improvement Fees
Police Academy
Court Facilities
Section 8 - Rental
Assistance
Road and Bridge
Special Law
Enforcement
Parks Development
South County Fire
District
West County Fire
District
Environmental
Control Board
Tourist Development
Street Lighting
Districts
Capital Projects Funds:
Indian River Boulevard
North
Treasure Shores Park
Golden Sands Park
unanticipated
Original Total Revised
Budget Revisions Budget
533,220,030 51,274,014 534,494,044
3,426,889 598,000 4,024,889
37,000 61,500 98,500
79,132 8,162 87,294
974,237 23,910 998,147
6,397,482 11,000 6,408,482
6,310 10,310 16,620
4,750 138,035 142,785
5,324,410 9,600 5,334,010
62,292 (2,117) 60,175
14,618 3,200 17,818
208,775 189,925 398,700
131,883 4,164 136,047
5,068,800
1,351,009
121,425
135,122
6,419,809
121,425
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 519,436,017 made up of demand deposits,
certificates of deposit, money market accounts, savings accounts and petty cash.
All deposits with financial institutions were 100• 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 5-11%.
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 11,785,541 -
U.S. Government Agency
Securities 36,055,247 -
Category
1 2
S - $ 3,850,000
Total Investments
$47,840.78t $ 3,850,000
Carrying
Amount
$ 3,850,000
11,785,541
36,055,247
551.690,788
Market
Value
$ 3,850,000
10,941,232
36,713,945
X551,505,177
In addition to the cash and temporary cash investments listed above, employee
deferred compensation plan (see Note 8) cash and temporary cash investments were
5532,151, 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.
Key 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
Balance at
October 1,
1989
Additions
Deletions
Balance at
Septem-
ber 30,
1990
Land
$15,879,630
538,104
2,169,584
Buildings
and
Improvements
Construction
Equipment In Progress
$17,193,206 $15,411,028
542,370 1,525,449
463,417
Total
Property,
Plant and
Equipment
$ 1,264,653 $49,748,517
14,377,494 16,983,417
1,197,088 3,830,089
S14.2464150 517,735.576 S16473,060 X514.445.059 S62,901,845
23
eau
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 565.255.776 p 104,436,
5. Interfund Accounts:
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 $607,500)
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 X54,025.958
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
MI
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
5.251-7.4%
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
NM)
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
6.401-7.50%
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
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 6.7011-7.25%
Bonds, Series 1989 5/1 and 11/1 2019 $6,510,000 $ 6,445,000
Less: Current portion
Unamortized bond
discount
70,000
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.
28
A
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 5 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
11
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
l% per annum on
the unpaid
balance, payable
September 1 each
year
Less: Current portion
$1,908,000 $ 1,802,000
1.908,000
S3.816.000
1,855,000
3,657,000
107,000
Long -Term Portion S 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 0% and 5s, 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
■I
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 $3,167 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
it
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 mature
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 Waste
Mater end Sewer Disposal 0 lona)
Fiscal year Sewer Revenue Syster. (6011 Course)
ending Revenue Refunding 0 Revenue Rousing
protember 30, Sonde Sonde bnda Sonde Authprtt9 Total
1991 S 691.500 $ 563,755 5 135,605 $ 261.360 $ 143.570 $ 2.335,590
1992 579.100 563.995 93.3.89S 263.800 163.500 2.666.29r
1993 579.868 563.820 136,050 243.830 143,420 2.666,986
1994 579.372 563.260 936,770 242,430 166.330 2,666.162
1995 S79.662 567,310 937,660 263.980 166.220 2.652.912
1996-2000 2.597,021 2.726,833 6.689.685 1,210,980 719.100 12.241.61?
2001-2005 2.896.797 2,720.680 1.171,995 1.223.110 719.750 9.639.112
2006-2010 2.898.365 2.722.880 - 1.216,125 718.900 7.556,650
2011-2015 2.591,295 2,726,860 1.211.000 715,560 7,552,699
2016-2020 2,597.766 2.186,870 - 663.560 5.730.154
2021-2025 5,217.314 - - - 5.217.1:6
Totals 22,515,221 15,806.243 11.266.240 6,076,615 6,260,870 59.893.220
Utast Amounts representing
1 13,865,221 9.359.293 3.506.260 3.356,615 583.970 29.971.22?
Total Sonde Payable 9.650.000 6.663.000 7,660.000 2,720.000 3.657.000 29.912.3^:
Less: Current portion - 70.000 630,000 40.000 107,000 667,010
Unamorttred bond
discount 31.211 61.637 92.670
S 9.650.000 1.14111+111 5 7.010.000
52.6155511 13.350.o0Q 529`x:
B. Enterprise Fund Bond Anticipation Notes - On November 29, 1988, the County
issued 6 7/81 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
5707,717 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 Outstanding at
and Original September 30,
Dates Maturity Issue 1990
6.875• 12/1/91 S 3.900.000 S 3.900.000
C. Changes in General Long -Term Debt
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
A summary of changes in general long-term
Balance
October 1,
1989 Additions Deletions
$ 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
Bonds Payable:
Refunding and
Improvement Revenue
Bonds - 1985 Series 8,865,000
Capital Improvement
Revenue Bonds -
1987 Series 3,415,000
General Obligation
Bonds - 1989 Series 5,900,000
Special Assessment
Bonds 2,830,188
Totals
3,006 $
17,671
317,954
227
1,775
340,633
16,604
16,604
9,790
1,896
11,686
68,265
33,703
14,455
34,638
28,512
179,573
13,278
Balance
September 30,
1990
$ 539,370
40,984
426,648
29,406
28,145
1,775
1,066,328
237,535
31,368
199,390
468,293
285,000 8,580,000
- 130,000 3,285,000
- 1,035,000 4,865,000
6,795,000 3971_487 9,227,701
21,010,188 6,795,000 1,847,487 25,957,701.
X522.392.109 S7.152.237 S2.052_.024 S27.492.322
33
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 $3,655,000 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 4 3/1 1997 $ 4,000,000 5 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 4 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
513.510.000 511,865,000
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
(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 55,900,000
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 i 1/1 1994 p5.9Q0.000 54.865,000
35
71
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 ware 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
Original
Dates Maturity Issue
8.47%
5/1 1997
8.47%
1/1 1996
6.75%-8.00%
6/1 i 2/1 2000
7.75%
4/1 6 10/1 2000
36
Outstanding
at
September 30,
1990
S 430,000 $ 334,444
2,797,675 2,098,257
720,000 720,000
6,075,000 6,075,000
$10,022.675 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 -Tera 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:
Revenue Bonds
Refunding
fiscal Year and Capital
ending improvement Improvement
leteeber 30, :?65 Series I2r' Series
C 1
OEltoacion Bonds
Series
1999
1991 S 1.060.!'E $ 368.523 S 1.400.152
1992 1.062.506 371.097 1,403.952
1993 1.062.344 367.760 1.406.352
1994 1.064.388 368.760 1,417,102
1119 1.063,106 368,840 -
1996-2000 5.307,038 1.842.960
2001-2005 5.312.636 1.833.862
2006-2009 - -
Totals 15.932.096 5,541.602 5,629.456
Less: Amount representing
interest 7.352.096 2.256.802 764.456
Total S 8.5�22 1.1._e AJALLJAA
Fiscal Year Special t Bends
ending Route 61 Route 60 Rockrtdge North County
feeteeber 30. waterline Sewerl:ne Mater Sewer
1991 S 76.105 S 527,432 S 96,960 S 1.080,812 S 1,781.309
1992 72,0Se 497.811 119,195 1.033,538 1,722,6.2
1993 68,012 468.191 119,295 986,262 ..641,'60
1994 63,965 438.571 106.695 938,988 :.550,419
1995 59.918 408,951• 108,715 891,713 1.469,296
1996-2000 107.696 379.330 445.770 3,728.312 4.66;.108
2001-2005 - - -
2006-2009
•
Totals
Less: Amount rep ing
1nte
447,754 2,720,265
113.310
998,830 0,659.625 .2.826,494
622,028 278 830
2.584,625 3.598,'93
Total
3 334.444 S 2.098.257 S 720.000 ; 6.075,0014
(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. Lona -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.
Capital Improvement Revenue Bonds:
Series 1980
Series 1981
Retired
During
Fiscal Year
1990
65.000
S 20.000
Outstanding
at
September 30,
1990
3.900.000
p 630.000
Solid Waste Disposal System
Revenue Bonds, Series 1977 S 140.000 ; 650.000
F. Capital Leases and Notes Pavable
(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:
Board of
Year Ending County Property
September 30, Commissioners 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 X4237.535, S31.368, S199.390 5468.293
38
el
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
S
475,775
84,837
X5560.612
$ - $251,120 $251,120
49,825 49,825
475,775
84,837
S49.825 S251.120 S861.557
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
\I
INDIAN RIVER COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30, 1990
7. 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
-�r
Ij
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 53,876,242 on covered payroll of
824,736,032, for a 15.67% contribution rate. Total payroll for the County was
827,854,074. The County's contribution represented less than 11 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 91 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 ace 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 512
billion.
Total
July 1, 1989
lin 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 511.244
The amount of the total pension benefit obligation is based on a standardized
measurement established by the GASB 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
{
MI
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:
October 1,
1990
Pension Benefit Obligation:
Retirees and beneficiaries currently
receiving benefits and terminated
employees not yet receiving benefits $1,255,433
Current employees -
Accumulated employee contributions
including allocated investment earnings 252,647
Employer -financed vested 1,489,879
Employer -financed nonvested 28,239
Total Pension Benefit Obligation 3,026,198
Net Assets Available for Benefits, at cost 3,0 72,965
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 costs (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 -
Premiu■ 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 $111,198
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 22.71
Employer .01
44
401
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:
Unfunded
Mt *softs Net Penson Itenet t c
Available Pension Over )Under) Covered oe.tgatt^r
Valuation for senitlts aenetlt Percentile, Pension Oeneftt Annual e• a t -.
ate Jit Natter) Otrltoatton Punded Obittatton Payroll Covered Peyrot:
1/1/00 52.495.126 $2.S47.670 97.f% $(52.5521 S126.564 14.01
1/1/99 2.652.777 2.6)).444 100.211 13.333 )6).991 -
10/1/S 2.915.000 2.907.196 104.611 126.644 )96.597 -
10/1/110 2.952.221 1.026.190 97.61 (7),967) 36'.'S2 .:.:1
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 compensation plans created in accordance
with the Internal Revenue Code, Section 457. The plan permits them to defer a
portion of their compensation until future years. The monies placed in the deferred
compensation plan are not available to employees until termination, retirement,
death, or an unforseeable emergency.
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. Segment 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
Operating Grant
Revenue
Solid Waste Water Rousing
Disposal Golf County and Sewer Author -
District Course Building, System Pty Total
$ 5,221,782 51.499,366 $ 696,949 $ 5,271,145 $ 360,424 513.049.666
- 16.28: 16,28:
Operating Depreciation
and Amortisation
Expanse 961.283 135,179 30,440 2,230,708 152,155 3,509,765
Operating Income
(Loss) 2,023,669 265.643 (118,306) (1,421,869) 154,966) 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
Flied 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 23,450 60.974
Net Working Capital
(Deficit) 4.770,256 38,721 1,066,093 648,735 1157.929) 6,365,876
Total Assets 15,241,583 2,800,669 1,229,320 64,853,636 5,103,977 89,229,185
Bonds Payable Prom
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 Year 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 545,000 and lease expendi-
tures totaled 5109,159 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 Hoard on noncancellable operating leases for office space as of
September 30:
Year Ending September 30,
1991 5 45,000
1992 45,000
1993 45,000
1994 45,000
1995 45,000
Remaining 663,750
Total future minimum lease receipts X5888.750
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
5734,000.
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 5109,159
1992 40,920
1993 7,920
Total future minimum lease payments 5157.999
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 Mater and
Disposal Golf County Sewer Housing
District Course Duildinq System Authority Tota:
Reserved for debt
service 5259,934 $204.693 $ 5146.279 $ 8.917 S 619,823
Reserved for renewal
and replacement 499.468, 204,827 704.295
Total EMLA2 IMAM L— swam iiilida sl"]
B. The following is • summary of changes in Proprietary Fund contributions by Fund:
Enterprise Funds Internal Service Funds
Solid
Masts
Disposal Golf County and Suer Mousing Fleet Selr
District COut se au.ldlne SV6tfm Authority M6naeemant insurance Tote.
Contributions at
October 1, 1969 5273,465 $421,013 S 12,161 570,712.664 5 994.975 5613,020 51:.5:9.`.39
!nettles, in
contributions 174,607 7.163,046 76,496 15,700 8.423 7.462,174
Depreciation on
contributed
assets .(24.7451 - (750,3401 (31.5951 (906.3001
Contributions at
September 30.
1990 112.161 536.667.590 51.042.279 5120.220 s 9.423 ;39.194.41;
48
PI
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.
Capital Projects Funds:
Reserved for capital projects
Treasure Shores Park
Indian River Boulevard North
Optional Sales Tax
Library Construction
North County Sewer
These reserves are the fund balances that
are restricted to specified capital projects.
49
Amount
S 40.000
$ 245,515
1,782,098
890,659
314,429
43,806
253,778
S3.530.285
$ 111,633
5,131,061
1,362,947
2,569,183
364,455
S9.539.279
11
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 Deficit
Special Revenue Fund:
Petition Paving
Enterprise Fund:
Golf Course
Internal Service Fund:
Fleet Management
$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 5500,000 for each general or auto liability
claim. Risk retention was decreased to 510.000 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.
50
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
1988-1989 $ -0-
1989-1990 415,250
Current Year
Claims
and Charges
in Estimates
$504,167
866,250
Balance
Claim at Fiscal
Payments Year End
$ 88,917 $ 415,250
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:
Capital
Projects Enterprise Total
Total contract price 512,945,180 $12,975,998 S25,921,178
Total paid as of
September 30, 1990 9,418,166 7,641,243 17,059,409
Remaining commitment at
September 30, 1990 S 3.527.014, S 5.334.755 S 8.86L769
51
L
l
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
$3,816,000 loan and 51,200,000 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 52.5 million.
C. On January 28, 1991, the Board approved a plan for the issuance of approximately
58,250,000 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 52,720,000.
52
.77777777
Appendix C
Summary of Certain Provisions of the Resolution
SUMMARY OF CERTAIN
PROVISIONS OF THE RESOLUTION
General
The following constitutes a summary of certain provisions of the Resolution. This summary, together
with the information contained in the Official Statement under the captions "DESCRIPTION OF THE SERIES
1991 BONDS," 'SECURITY AND SOURCES OF PAYMENT,' and "ADDITIONAL FINANCING
ARRANGEMENTS' is intended to provide information as to the general nature of the provisions of the
Resolution, and is not intended and does not purport to be a complete description of the terms of the Resolution.
Accordingly, this summary is qualified in its entirety by reference to the Resolution, a copy of which may be
inspected at the office of the County Attorney or the Clerk of the Board of County Commissioners. The
covenants of the County set forth in the Resolution are subject to any stricter covenants which may have been
imposed upon the County in the Senior Lien Bond Resolution, which covenants shall be observed while any
Senior Lien Bonds are outstanding. See, for example, 'SECURITIES AND SOURCES OF PAYMENT --
Flow of Funds Under Senior Lien Bond Resolution."
The 1991 Project
The Resolution authorizes the 1991 Project in accordance with the plans and specifications on file or to
be placed on file with the County. Also, the Resolution declares the 1991 Project to be part of the System.
Retirement of Series 1988 Notes
The Resolution authorizes the County to retire the Series 1988 Notes, in whole, at or prior to maturity
with a portion of the proceeds of the sale of the Series 1991 Bonds and other legally available funds.
Non-Arhitrage and Tax Covenants
The County covenants in the Resolution that it will make no use of the proceeds of the Series 1991
Bonds which would cause the Series 1991 Bonds to be "arbitrage bonds' within the meaning of Section
103(b)(2) and Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), and that it will
comply with all other requirements of applicable provisions of the Code.
Application of the Series 1991 Bond Proceeds
All moneys received from the sale of the Series 1991 Bonds shall be deposited and applied by the
County as follows:
(1) All accrued interest on the Series 1991 Bonds, plus such other amount as may be designated
by the County to be made available to pay interest on the Series 1991 Bonds for a specified period after
issuance, shall be deposited into the Sinking Fund and applied exclusively for the payment of interest
first becoming due on the Series 1991 Bonds.
(2) A sum, if any, specified by subsequent resolution of the County shall be deposited into the
Reserve Account in the Sinking Fund.
(3) The amount specified by subsequent resolution as necessary to retire all of the outstanding
Series 1988 Notes shall be so applied.
(4) The amount necessary to pay all engineering fees, costs and expenses of financial reports,
studies and projections, legal fees, fees of financial advisors, printing expenses, insurance premiums,
rating fees, and all other similar costs incurred in connection with the issuance of the Series 1991
Bonds shall be paid or provided for.
4
(5) The balance of the moneys remaining after malting all deposits and payments provided for in
(1) through (4) above shall be deposited into the 1991 Construction Fund. Moneys on deposit in the
1991 Construction Fund shall be withdrawn, used, and applied by the County, as necessary, for
payment of costs of the 1991 Project and purposes incidental thereto.
If for any reason any proceeds of the Series 1991 Bonds 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.
A Rebate Account is established wherein amounts sufficient to pay the United States of America all
amounts due with respect to the Series 1991 Bonds under the provisions of Section 148(0 of the Code. or under
similar provisions of subsequent Federal revenue laws, will be transferred from the funds and accounts created
under the Resolution.
Investments
All moneys in all funds and accounts created by the Resolution, including without limitation, the
Revenue Fund, the Sinking Fund, the Bond Amortization Account. and the Reserve Account. must be secured
in the manner by which deposits of public funds are authorized to be secured by State law and may be invested
only in Authorized Investments. Moneys on deposit in the Revenue Fund and the Sinking Fund (except the
Reserve Account therein) may be invested and reinvested only in Authorized Investments maturing not later than
the date on which the proceeds thereof will be needed. Moneys in the Reserve Account may be invested and
reinvested in Authorized Investments maturing not later than five (5) years from the date of purchase. Except
as may be provided in a resolution adopted in connection with the issuance of Additional Parity Bonds. any and
all income from such investments shall be deposited into the Rebate Account to the extent required and the
excess, if any, into the Revenue Account.
Defeasance
If at any time the County shall have paid, or shall have made provision for the payment of, the
principal, interest and premiums. if any, with respect to any of the Bonds or any series thereof, then, and in
that event, the pledge of and lien on the Pledged Funds in favor of the Registered Owners of such Bonds or of
such series, as the case may be, shall no longer be in effect. For purposes of the preceding sentence, the
deposit of sufficient cash and/or Federal Securities, or bank certificates of deposit fully secured as to principal
and interest by Federal Securities (or deposit of any of the securities or investments which may be authorized by
law from time to time and sufficient under such law to effect sucb a defeasance) in irrevocable trust with a
banking institution or trust company, for the sole benefit of the Registered Owners of such Bonds or such
series, as the case may be, the principal of and interest on which will be sufficient to pay, when due, such
Bonds or such series, as applicable, shall be considered "provision for payment."
Events of Default; Remedies
No event of default is expressly stated in the Resolution. In addition, no trustee has been appointed
under the Resolution to enforce any failure by the County to pay principal of or interest on the Series 1991
Bonds, when due, or to enforce any remedies provided by the Resolution to the holders of the Series 1991
Bonds. In determining whether an event of default has occurred no effect shall be given to payments made by
the Bond Insurer. No remedial action shall be taken without the consent of the Bond Insurer, and the Bond
Insurer acting alone. shall have the right to direct remedies upon default. Subject to the foregoing, any Holder
of any Series 1991 Bond may either at law or in equity by suit, action, mandamus, or other proceeding in anv
court of competent jurisdiction, protect or enforce any and all rights existing under Florida law or granted and
contained in the Resolution, and may enforce and compel the performance of all duties required by the
Resolution or by any applicable state or Federal statutes to be performed by the County or any officer thereof.
C-2
11
Modification
• No adverse 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 Holders of 51% or more in
aggregate principal amount of the Bonds then outstanding affected by such adverse material modification or
amendment; provided, however, that no modification or amendment shall permit a change in the maturity of any
Bonds or a reduction in the rate of interest thereon or in the amount of the principal obligation thereof, or affect
the unconditional promise of the County to levy, impose and/or collect the Revenues, or other receipts and
revenues pledged under the Resolution, if any, or to pay the principal of and interest on the Bonds as the same
shall become due or reduce the percentage required above for an adverse material modification or amendment,
without the consent of the Holden of all of the Bonds affected thereby. The foregoing shall not apply with
respect to supplemental resolutions adopted for the sole purpose of issuing Additional Parity Bonds or junior and
subordinate obligations issued in accordance with the Resolution.
Operation and Maintenance
The County will maintain the System 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.
No Mortgage or Sale of the System
The County will not sell, mortgage, pledge, or otherwise encumber the System or any part thereof, or
any Revenues to be derived therefrom, except as provided in the Resolution (which contemplates, without
limitation, the issuance of Additional Parity Bonds), and will not sell, lease, or otherwise dispose of any
substantial portion of the System, except as set forth below.
The County may sell, lease or otherwise dispose of the property comprising a substantial portion of the
System in the event that (a) such property is determined by resolution of the Board, upon the recommendation
of the County Administrator and the Consulting Engineers, to be no longer necessary or useful or profitable for
the System; and (b) the sale, lease, or other disposition of such property is determined by resolution of the
Board, upon recommendation of the County Administrator and the Consulting Engineers, not to impair the
ability of the County to comply during the current or any future Fiscal Year with the rate covenant set forth in
the Resolution.
The proceeds derived from any sale, lease or other disposition of a substantial portion of the System
shall be used for the retirement of outstanding Bonds, subject to the prior application thereof for any then
outstanding Senior Lien Bonds. Any other proceeds derived from the sale, lease or other disposition of a
portion of the System shall be placed in an appropriate fund of the County relating to the renewal or
replacement of the System, provided, however, all or a portion of any such proceeds may be used for the
retirement of outstanding Bonds if authorized by resolution of the Board upon the recommendation of the
County Administrator and the Consulting Engineers.
Insurance
For so long as any of the Bonds are outstanding, and to the extent practicable, the County will carry
a;lequate fire and windstorm insurance on all buildings, structures, and other appropriate properties of the
System, which are subject to loss through fire or windstorm, will carry adequate public liability insurance, and
will otherwise carry insurance of all kinds and in the amounts normally carried in the operation of similar
facilities and properties in Florida. Any such insurance shall be carried for the benefit of the Registered
Owners of the Bonds, subject to the prior application thereof for any then outstanding Senior Lien Bonds. All
moneys received from losses under any of such insurance, except public liability, are hereby pledged by the
C-3
N
County u security for the Bonds, until and unless such proceeds are used to remedy the loss or damage for
which such proceeds are received, in which event the repairing of the property damaged or the replacement of
the property destroyed shall be commenced within a reasonable time after the receipt of such proceeds and shall
proceed on a reasonable and continuous basis.
No Free Service
The County will not render or cause to be rendered any free use of any nature of the System, nor will
any preferential rates be established for users of the same class.
Operating Budget
On or before the last day of each Fiscal Year, the County shall adopt an annual budget for the System
for the ensuing Fiscal Year, which shall include a budget for Operating Expenses. The Operating Expenses
incurred in any Fiscal Year will not exceed the reasonable and necessary amounts required therefor and the
County will not expend any amount or incur any obligation for the operation, maintenance, and repair of the
System in excess of the amount provided for the purpose in the annual budget for the then current Fiscal Year
except upon resolution of the Board declaring that such expense are necessary for the operation and maintenance
of the System.
If the budget discloses that the estimated Revenues and other revenues, funds, and receipts pledged
under the Resolution will be insufficient during which Fiscal Year, after payment of the Operating Expenses, to
meet the rate covenant set forth herein, the County shall forthwith revise the rates, fees, and charges imposed
with respect to the System in order to cure such estimated deficiency and to comply with the rate covenant.
There shall be included in the budget amounts necessary to provide for the orderly replacement of the
depreciable capital assets of the System.
Consulting Engineers
The County will annually retain the Consulting Engineers for the purpose of providing the County with
competent engineering counsel with respect to the economical and efficient operation of the entire water and
sewer system of the County and in connection with the making of capital improvements thereto and renewals
and replacements thereof. The County may, however, employ additional engineers at any time with relation to
specific engineering and operation problems arising in connection therewith.
No Competing Systems
To the MI extent permitted by law, the County will not grant, renew, extend, or allow to expand any
franchise or permit for any system similar to the System within the service area of the System.
54616.1
C-4
II
IN
Appendix D
Engineer's Report
11
1
INDIAN RIVER COUNTY
Division of Utility Services
Engineers' Report for
Water and Sewer
Revenue Bonds, Series 1991
September 16, 1991
Honorable Chairman and
Board of County Commissioners
Indian River County
1840 - 25th Street
Vero Beach, Florida 32960
RE: Indian River County, Florida
Engineers' Report for Water and Sewer
Revenue Bonds, Series 1991
Dear Board of Commissioners:
We have prepared this letter report to present pertinent engineering
information for the Official Statement regarding the issuance by Indian River
County, Florida of the Water and Sewer Revenue Bonds, Series 1991 (the 1991
Bonds). The purpose of the 1991 Bonds is to provide funds for the North
Beach Reverse Osmosis Treatment Plant loan refunding as well as to provide
funds for the construction of a Regional Sludge Facility for Indian River
County. The North Beach Reverse Osmosis refunding is not considered in this
report. The estimated program costs of $5,858,000 are necessary to meet
Indian River County's immediate and future needs for treatment and disposal
of sludge, septage. and grease. The program includes the following
components:
o Sludge, septage, and grease pre-screening and receiving
o Sludge and septage dewatering
o Odor control
o Sidestream equalization and pumping
o Grease concentration
o Dewatered sludge hauling
M.VRB2/5
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 2
This report has been prepared using a number of sources. Camp Dresser &
McKee Inc. (CDM) has been working closely with the County since 1985. During
this time, CDM has obtained significant knowledge of the operation and
management aspects of the County's utility system. We have provided several
services to the County, including preparation of the Septage and Grease
Management Feasibility Study, published in October 1986. the Sludge
Management Feasibility Study, published in October 1986 and the Wastewater
Master Plan. published in February 1988.
This report addresses the following:
o Background of the Project
o Administration and Staffing
o Existing Treatment Facilities and Operations
o Projected Waste Quantities
o Proposed Treatment Facility
o Project Funding and Financial Requirements
1 NTRODUCTION
Indian River County is located on the east coast of Florida. approximately
157 miles north of Miami and 193 miles south of Jacksonville. The County
occupies approximately 540 square miles, extending approximately 22 miles on
a north/south axis and approximately 38 miles on an east/west axis. as shown
in Figure I. The County is governed by a five -member Board of County
Commissioners (BCC).
M.VRB2/5
STATE OF FLORIDA
ATLANTIC
OCEAN
GULF
OF
MEXICO
FELLSMERE
BLUE
CYPRESS
LAKE 51?
1r
co
INDIAN RIVER.
COUNTY
ATLANTIC
OCEAN
THIS PROJECT
INDIAN RIVER COUNTY, FLORIDA
LOCATION MAP
FIGURE 1
CDM
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 4
In March of 1988. the United States Environmental Protection Agency (U.S.
EPA) proposed new regulations establishing requirements for land application,
distribution and marketing. monofilling. surface disposal and incineration of
sludge. Because of the changes included in Volume 40 of the Code of Federal
Regulations. numbers 503 and 257. the current practice of land application of
sludge in Indian River County is no longer a viable option.
Recognizing that the cunent method of sludge disposal is no longer viable,
Indian River County contracted with COM to prepare a report and Master Plan
to determine the most cost effective, acceptable method of sludge disposal
for Indian River County. CDM evaluated a number of options. including
additional sludge treatment followed by land application of sludge. lime
stabilization of sludge followed by landfilling. landfilling of anaerobically
digested sludge. as well as others. The most coat effective. implementable.
and permutable method of sludge disposal for Indian River County was
determined to be dewatering of waste activated sludge. (the proposed Regional
Sludge Facility). with final disposal in the County's landfill. Upon
completion of this project. a future project may combine the dewatered sludge
with yard wastes (tree trimmings. branches. clippings. etc.) in a compost
facility located at the County's landfill she. This composted product may
then be used as landfill cover or as a subbase for landscape projects.
Therefore. through evaluations. feasibility studies and master planning
efforts mentioned earlier. CDM has identified the need for a change in the
method of treatment and disposal of sludge in Indian River County. The need
for a Regional Sludge Facility in Indian River County is based on proposed
changes in regulatory requirements for the treatment and disposal of sludge
M. VRB2/5
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 5
in the United States and the state of Florida. In addition to being
necessary. the February 1988 "Indian River County Wastewater Master Plan"
demonstrated the proposed project to be cost effective in addressing the
management of sludge. septage. and grease in Indian River County.
On March 14, 1988. Indian River County submitted an application to the
Florida Department of Environmental Regulation (FDER) to construct the
proposed Regional Sludge Facility (Facility). In recognition of the need
for. and cost-effectiveness of. the Regional Sludge Facility. FDER and the
Environmental Protection Agency (EPA) have offered a construction grant for
the project and issued construction permit number DC31-146713. Under the
terms of the grant offer. the amount of the grant will continue to erode
until bids are opened. Advertisements for bids appeared in area newspapers
on July 5. 1991 and again on July 12. 1991. Bids were opened on August 28.
1991. Review of the bids by the County and FDER and contract award are
expected to require three to four months. with the notice to proceed issued
one to two weeks thereafter. Construction of the Facility is anticipated to
last 15 months, with completion of the project scheduled for the Spring of
1993.
For the purposes of this report. we define sludge. septage. and grease as
follows:
o Sludge - the solid or semi-solid residual by-product of the
wastewater treatment plant process.
o Septage - the liquids and solids removed from domestic septic
tanks and portable toilet facilities.
M.VRB2/5
Al
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 6
o Grease - the material taken from commercial grease traps
typically found at food processing facilities and/or
restaurants.
BACKGROUND OF THE PROJECT
The Wastewater Master Plan. published in February 1988. investigated the
needs for treatment and disposal of septage. grease. and wastewater sludge
wastes in the County. Based on anticipated changes in state and federal
regulations and CDM"s investigations for disposal of wastewater sludge in
Indian River County. the current method of liquid land application has been
shown to be less cost-effective than other methods of disposal. Hence. a
clear need exists for developing an approvable. long-term method for
treatment and disposal of sludge and other similar liquid wastes.
Various disposal alternatives were investigated and it was determined that a
more cost-effective and implementable treatment approach would be to
construct one regional facility to treat all three of these waste types. Not
only would a single. centrally located facility provide economies of scale in
treating and disposing of waste activated sludge. but the design of the
facility could be tailored to accept grease and septage loads without
periodic adjustments to the treatment process that might be required at other
facilities designed primarily for municipal wastewater treatment.
ADMINISTRATION AND STAFFING
The Wastewater Treatment Division (WTD) is a division within the County's
Department of Utility Services that is responsible for the operation and
maintenance of nine existing County -owned wastewater treatment facilities.
M.VRB2/5
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 7
The Director of Utility Services, assisted by the Wastewater Supervisor. has
overall management responsibilities for these facilities. Figure 2 provides
an organizational chart of the existing and proposed Wastewater Treatment
Division.
Presently. the WTD operates seven days a week and supports 30 permanent.
full-time. authorized positions. The WTD serves several purposes that
include monitoring the operations of nine County -owned wastewater treatment
facilities, maintaining all equipment at each facility. recording quantities
at each facility. tracking operational costs per 1,000 gallons. and
performing overall wastewater treatment plant operations.
Combined with the above-mentioned duties. the Wastewater Supervisor will have
overall management responsibilities for the proposed Facility. Normal hours
of operation are expected to be eight hours per day, five days per week.
However, during peak conditions. operators may be required to work up to 12
hours per day. The addition of two full-time permanent and four part-time
permanent employees will provide suppon for the day-to-day operation and
maintenance of the proposed Facility.
EXISTING TREATMENT FACILITIES AND OPERATIONS
Presently, wastewater treatment and disposal services within the
unincorporated County are provided by approximately 20 wastewater treatment
plants ranging in size from 0.01 million gallons per day to 1.0 million
gallons per day (mgd). Of these facilities. nine are owned and operated by
the County and are listed in Table 1.
M.VRB2/5
6706-031
EXISTING TREATMENT PLANTS OWNED
AND OPERATED BY INDIAN RIVER COUNTY (1)
Facility Name
Design
Capacity
Type of Treatment
Central Sub -Regional
Treatment Plant
Lindsey Rd. & 35th Avenue
Gifford, FL
Secondary treatment
activated sludge
WWTP (2) with contract
hauler for sludge
removal and disposal
Indian River County
North Regional Sewage
Treatment Plant
Hobart Road
Wabasso, FL
Secondary treatment
activated sludge
WWTP with contract
hauler for sludge
removal and disposal
Indian River County West
Regional Sewage Treatment Plant
8th Street & 90th Avenue
Vero Beach, PL
Secondary treatment
activated sludge
WWTP with contract
hauler for sludge
removal and disposal
Laurelwood Subdivision
Sewage Treatment Plant
Citrus Road/27th Avenue
Vero Beach, FL
Secondary treatment
activated sludge
WWTP with contract
hauler for sludge
removal and disposal
River's Edge Subdivision
Sewage Treatment Plant
Roseland Road
Roseland, FL
0.015 mgd
Secondary treatment
activated sludge
WWTP with contract
hauler for sludge
removal and disposal
Roseland Plaza
Sewage Treatment Plant
US 1 and Roseland Rd.
Sebastian, FL
0.01 mgd
Secondary treatment
activated sludge
WWTP with contract
hauler for sludge
removal and disposal
M. VRB2/4
9/16/91
6706-031
TABLE 1 (continued)
EXISTING TREATMENT PLANTS OWNED
AND OPERATED BY INDIAN RIVER COUNTY (1)
Facility Name
Design
Capacity
Type of Treatment
Sea Oaks Condominiums
Sewage Treatment Plant
State Road A -1-A
Vero Beach, FL
Vista Royale Condominiums
Sewage Treatment Plant
100 Vista Royale Blvd
Vero Beach. FL
Vista Royale Gardens
Condominiums Apartments
Sewage Treatment Plant
South US 1
Vero Beach, FL
0.21 mgd
0.5 mgd
0.15 mgd
Secondary treatment
activated sludge
WWTP with contract
hauler for sludge
removal and disposal
Secondary treatment
activated sludge
WWTP with contract
hauler for sludge
removal and disposal
Secondary treatment
activated sludge
WWTP with contract
hauler for sludge
removal and disposal
(1) Source: Indian River County Wastewater Master Plan.
Camp Dresser & McKee Inc., February 1988
(2) WWTP - Wastewater Treatment Plant
M.VBR2/4
9/16/91
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Honorable Chairman and
Board of County Commissioners
9/16/91
Page 11
The waste activated sludge generated at the wastewater treatment plants is
removed by a contract hauler for disposal. The contract haulers transport
the sludge in trucks to currently approved sites for liquid land disposal.
Liquid land disposal is the disposal of waste activated sludge having a
concentration of less than 12 percent solids onto pasture lands and fields.
For treatment and disposal of septage in the County, residential and
commercial customers contract with private haulers for the removal of
septage. The haulers transport the septage to the old Gifford Wastewater
Treatment Plant where it is received in "slug" loads and then aerated. The
aerated septage is then pumped to the headworks of the Central Sub -Regional
Treatment Plant where it becomes part of the wastewater stream. The
resulting waste activated sludge is removed by a contract hauler for liquid
land disposal as previously described.
Within Indian River County. one septage hauler presently owns and operates a
small lime stabilization facility. permitted by FDER. A spokesperson for
this company estimates that they transport 2,000 gallons per day of septage
collected from residential and commercial customers to the facility for
processing. The septage is removed from the pumper -truck and discharged into
a holding tank where the septage undergoes lime stabilization. The treated
septage is removed for liquid land disposal through the same processes as
mentioned above.
The existing process for treatment and disposal of grease begins with a
private hauler removing the material from residential and commercial grease
traps. The hauler collects the material into a vehicle holding tank and
transports the material to the Indian River County Landfill. The material is
disposed of as Grade I11 food sludge by direct discharge onto the active
M. VRB2/5
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 12
working face of the Class I cell. This is a disposal method accepted by
FDER.
PROJECTED WASTE QUANTITIES
SLUDGE
The Wastewater Master Plan developed projections of average day and maximum
month sludge quantities for County -owned facilities. Those quantities were
based on a solids concentration of 0.75 percent. Since that time, actual
experience has indicated that the solids concentration is approximately 1.0
percent. which will enable the hydraulic capacity to be slightly reduced.
Table 2 presents projected average daily sludge quantities based on the
five-year increments and a 1.0 percent solids concentration. These projected
quantities include only sludge from County -owned facilities.
SEPTAGE
The Wastewater Master Plan projected septage quantities in five-year
increments from 1985 through the year 2005. Table 2 also provides
projections of the annual volume of septage based on that source using
straight line interpolation.
The annual number of active septic tanks throughout the County is also
projected in Table 2 using assumptions developed during the master planning
process. An average septic tank volume of 1,000 gallons in conjunction with
an average pumpout frequency of four years is applied to the projected
septage quantities to project the annual number of septic tanks.
M.VRB2/5
TABLE 2
PROJECTION OF WASTE QUANTITIES
Sludge Septage Grease
Number Number
Gallons Per Gallons Per of Septic of Grease Gallons Per
Year Day (1) Day (2) Tanks (3) Traps (4) Day (5)
1990 69,767 7,644 11,160 448 2,466
1991 79,259 7,605 11,104 469 2,575
1992 88,752 7,567 11,048 490 2,685
1993 98,244 7,529 10,992 510 2,795
1994 107,737 7,490 10,936 531 2,904
1995 117,230 7,452 10,880 552 3,014
1996 130,333 7,408 10,816 572 3,123
1997 143.436 7,364 10,752 591 3,233
1998 156,539 7,321 10.688 611 3,342
1999 169,642 7.277 10,624 630 3,452
2000 182,745 7,233 10,560 650 3,562
(1) Based on Average Daily values for year 1990, 1995, and 2000 taken from
Table 4-3 of the February 1988 "Indian River County Wastewater Master
Plan", prepared by CDM, ajdusted for 1% solids concentration instead of
0.75% solids concentration. Straight line interpolation was used for
intervening years.
(2) Based on Table 4-5 of the February 1988 "Indian River County Wastewater
Master Plan", prepared by CDM. Straight line interpolation used for
intervening years.
(3) Based on the Generation Rate assuming a pumpout frequency of once every
four years and an average septic tank volume of 1,000 gallons. Straight
line interpolation used for intervening years.
(4) Taken from Table 4-6 of the February 1988 "Indian River County
Wastewater Master Plan", prepared by CDM. Straight line interpolation
used for intervening years.
(5) Based on the number of grease traps and a generation factor of 2,000
gallons per grease trap per year.
M.VRB2/6
13
Honorable Chairman and
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9/16/91
Page 14
GREASE
The Wastewater Master Plan also projected the number of grease traps and
grease quantities in five-year increments from 1985 through the year 2005.
Table 2 presents these projections, which employ straight line interpolation
for intervening years.
Average daily grease quantities are also projected in Table 2 using a
generation rate of 2.000 gallons per grease trap per year.
PROPOSED TREATMENT FACILITY
The following is a detailed description of the proposed Regional Sludge
Facility. Figure 3 provides a schematic diagram of the processes to be used
at the facility.
DESIGN CRITERIA
The design of the Facility is based on flow projections for the year 2010.
However, due to cost effective considerations, the first stage of
construction is to the year 2000. Afterwhich, an expansion to this Facility
may be necessary. The expansion includes the addition of one new 2.0 meter
belt filter press. an extension of the conveyor system, and a minor expansion
of the process bay area located in the solids processing building. This
phase of the design includes consideration for an expansion as required by
EPA. The year 2000, parameters are used, and they incorporate maximum
monthly quantities to reflect peak loads anticipated at the Facility. Table
3 presents the design criteria used in sizing the Facility.
M.VRB2/5
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6706-031
TABLE 3
SLUDGE, SEPTAGE AND GREASE
DESIGN CRITERIA(1)
Raw Waste
Parameter Activated Sludge Septage Grease
Total Suspended Solids SS (mg/L) 10.000 20.000 110.000
Volatile Suspended Solids
(VSS) (% of SS) 60% 65% 90%
Year 2000
Maximum Month Flows (gpd) 228.700 (2) 10,850 (3) 7,120 (4)
Year 2000
Maximum Month Solids Loading
Rates (Ib/day)
19.120
1,820 6,400
(1) Taken from Table I of CDM's September 1990 report entitled Indian River
County Regional Sludge Facility
(2) Equals average daily quantity from Table 2 multiplied by a peaking factor
of 1.25.
(3) Equals average daily quantity from Table 2 multiplied by a peaking factor
of I.S.
(4) Equals average daily quantity from Table 2 multiplied by a peaking factor
of 1.8.
16
M.VRB2/4
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 17
RECEIVING FACILITY
Sludge, septage, and grease wastes are introduced to treatment at a
controlled rate rather than being received in "slug" Toads. The function of
the receiving facility is to accept these wastes at highly variable dumping
rates and to discharge them to the treatment process at a steady rate. No
biological treatment of the wastes is provided in this receiving facility.
The receiving facility is designed to minimize the potential for odors
normally generated during dumping.
County -contracted haulers transport septage from County owned and operated
facilities to the Facility in their vehicles and discharge the sludge via a
quick -connect coupling directly to a receiving manhole. Private haulers
transporting septage and grease discharge their wastes via the same method.
The dumping area is sloped toward the receiving manhole to provide collection
and control of any spillage. The wastes flow through a bar screen into a
holding tank with mechanical mixers to keep the contents in suspension.
A bar screen is a necessary unit process for a receiving facility. A manual
bar screen has been selected for Indian River County based on the design of
the receiving facility to operate in a batch mode. An operator will be
present when sludge, septage, or grease loads are discharged to the receiving
facility. Therefore, the operator will be available to clean the bar screen
during this operation.
The septage holding tank is divided into two sections and provides 24-hour
storage capacity in each section for the incoming septage. Having two
sections in the tank enables a combination of isolation and flow control into
M.VRB2/5
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 18
the treatment facility. The holding tank is equipped with two torque flow
pumps which transfer the septage from the holding tank to the degritting
units. Due to the wide variations in solids concentrations of the septage,
the holding tank provides for dilution water additions to allow adequate
mixing and pumping of the incoming wastestreams. Following the holding tank,
there is a degritting system to remove sand and other fine particles not
removed by screening. After degritting, the septage is discharged into the
sludge holding tank.
The grease holding tank provides over 40 hours of storage capacity for the
incoming grease. The tank has a rotary lobe pump to transfer the grease from
the holding tank to the grease concentrator unit. One rotary lobe pump is
provided for backup. but is not installed.
The sludge holding tanks provide 25 hours of storage capacity for the
incoming waste activated sludge. The sludge holding tanks are divided into
two separate holding tanks with a storage capacity of 12-1/2 hours each. The
design of sludge holding tanks provides two rotary lobe pumps plus one backup
rotary Tobe pump to transfer the sludge to the solids processing building.
Table 4 summarizes the design criteria for the receiving facilities.
TREATMENT FACILITIES
Septage Degritting
Cyclone degritters are effective in the pretreatment of septage to remove
grit. Cyclone degritters are designed to be operated in the batch operation
M. VRB2/5
11
41)
6706-031
TABLE 4 •
SLUDGE, SEPTAGE AND GREASE RECEIVING
UNIT DESIGN
Bar Screens
Number 5
Type Course Manual Screen
Dimensions 3 feet wide x 3 feet high
30° slope from horizontal
Cyclone Degritting Unit
Number of Units 2
Underflow 15 gpm
Pump Type Torque Flow
Pump Flow 100 gpm
Pump TDH 45 feet
Classifier Size 12 -inch straight tank
Classifier Mesh Size 150
Equalization/Storage
Sludge
Detention Time 25 hours
Volume per tank 14.400 cubic feet
Number of tanks 2
Septage
Detention Time 48 hours
Volume per tank 1.728 cubic feet
Number of tanks 2
Grease
Detention Time 40 hours
Volume per tank 1,728 cubic feet
Number of tanks 1
Grease Concentration
Detention Time 120 minutes
Volume 1,925 cubic feet
M. VRB2/4
9/12/91
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Honorable Chairman and
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mode. This type of operation is suited to applications where septage is
dumped from hauler trucks for treatment or storage. An important advantage
of the cyclone degritter is that it generates fewer odors since no forced
aeration takes place. The primary design control factor is the flow velocity
which is controlled by the pumps that feed the degritting units. For the
cyclone degritter to operate efficiently, the solids feed concentration
should average' Tess than two percent. The solids concentration of the
septage is expected to be in the one to three percent range. Solids
concentrations of less than two percent can be maintained by the addition of
dilution water. Therefore. due primarily to lower costs and batch operation
of the system, the cyclone degritter is used as the basis of design.
Grease Concentration
A grease concentrator is a process unit that is appropriate for use with only
grease loads or mixed loads of septage and grease wastes. The principle of
the process is that the unit relies on the difference in specific gravities
between grease wastes and other materials. The grease wastes float to the
surface and are removed by a skimming device. The concentrated grease is
then hauled to the County, landfill and disposed of as a food service sludge
or recycled if that option becomes available. The underflow from the grease
concentrator is pumped to the sidestream treatment facility for treatment.
Belt Filter Press Dewatering
Dewatering is the removal of water from wastewater solids to achieve a volume
reduction greater than that achieved by thickening. Dewatering sludge from
M. VRB2/5
Honorable Chairman and
Board of County Commissioners
9/16/91
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one percent solids concentration up to a 12 percent solids concentration
reduces volume by over 90 percent and results in a non-fluid material. This
substantial reduction in volume is done primarily to decrease the capital and
operating costs of the subsequent sludge disposal process.
Two waste activated sludge feed pumps will feed the sludge from the sludge
holding tanks to the belt filter presses located in the solids processing
building. The pumps are heavy-duty, self -priming, positive displacement.
rotary lobe type, each rated at 185 gallons per minute (gpm).
The recommended dewatering process units are belt filter presses. This type
of mechanical dewatering unit employs an endless moving belt to dewater
sludge continuously. The process consists of three basic operational stages:
chemical conditioning of the feed sludge by polymer addition, gravity
drainage to a non-fluid consistency. and compaction of the partially
dewatered sludge.
The design loading of the belt filter presses is based upon the maximum
monthly solids loading of 21,025 lbs/day. This consists of 19,120 lbs/day of
raw waste activated sludge, 1,820 lbs/day of septage and 85 lbs/day of
polymer. Assuming a six-day per week and 12 hours per day operation of the
belt filter presses, a solids loading rate capacity of 2.044 lbs/hr is
required. A typical solids handling capacity of 600 lb/hr/meter is used for
design. Therefore. two 2.0 meter belt filter presses will handle the maximum
month solids loading. Additional presses may be added, if needed.
M. VRB2/5
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 22
The expected performance of belt filter presses is dependent upon many
factors: type of sludge. quality of conditioning, pressure of rollers.
number of rollers, etc. However, with a feed concentration of 0.75 to 1.5
percent of waste activated sludge, a cake with a solids concentration of 12
to 18 percent can be expected. The specifications will require the belt
filter presses to achieve a minimum of 12 percent solids concentration and a
monthly average of 15 percent solids concentration. Polymer addition is
required at a rate of a minimum five to ten pounds of dry polymer per ton of
dry feed solids. Therefore. an overall solids capture of 95 percent is
expected.
Table 5 is a summary of the design criteria of the belt filter presses. The
dewatering building includes such items as the belt filter presses. polymer
system. cake conveyer system, and other necessary appurtenances. Also
included with the dewatering building design are two ram -eject type trailers
to haul the dewatered sludge to the landfill.
Class 1 reliability criteria require that a sufficient number of presses be
installed to enable the design sludge flow to be dewatered with the largest
capacity unit out of service. However, if the equipment is sized on Tess
than 24-hour per day operation, extension of normal working hours can be used
to make up lost capacity. Therefore, a full standby belt press will not be
installed. Also, no dewatered sludge storage will be needed. If sludge
cannot be hauled away, sludge inventories will temporarily be increased at
the wastewater treatment plants and the septage will be stored in the septage
holding tank.
M.VRB2/5
6706-031
TABLE 5
DESIGN OF BELT FILTER PRESSES
Number of Units
Size. each
Sludge Type
2
2.0 meters
Waste activated blend with
septage (10:1 ratio)
Design Solids Loading. each (2 units) 600 Ib/hr-meter
Operating Period 6 days/week. 12 hours/day
Concentration of Feed Sludge 0.75 to 1.5 percent
(1.0 percent average)
Concentration of Dewatered Cake 12 percent minimum
15 percent 30 -day average
Polymer Dose 5 to 10 Ib/ton
Solids Capture 95 percent
Sludge Feed Pumps 2 (plus one standby)
Rating of Thickened Sludge Feed Pumps 185 gpm
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9/12/91
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Honorable Chairman and
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Odor Control
Odor control equipment is provided for the following processes:
o Solids Processing Building
o Sludge, Septage, and Grease Receiving/Pretreatment
o Belt Filter Presses
o Equalization Basin
o Grease Concentrator
The basis of design is a counter -current, packed -tower wet scrubber system.
This system is capable of reducing the hydrogen sulfide concentrations to
Tess than one part per million. The system utilizes two towers followed by
discharge to the atmosphere. A sodium hydroxide solution is fed through the
tower packing and interacts with the odorous air flowing in the opposite
direction. The air then travels through a second scrubber which utilizes a
chlorine solution as a scrubbant. The air travels through a mist eliminator
at the top of the tower before discharge to the atmosphere.
Sidestream Treatment and Equalization
Sidestream treatment is necessary to handle the underflows and supernatants
of the various sludge, septage. and grease treatment processes. Treatment of
the Regional Sludge Facility sidestream will be provided by existing capacity
at the Central Subregional WWTP. As additional capacity is required, an
expansion may be warranted.
M. VRB2,'5
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 25
The sidestream flow is estimated to be 339,490 gpd for the design year 2000
maximum month conditions shown in Table 6. The total suspended solids
concentration (TSS) is estimated to be 250 milligrams per liter (mg/L) and
the biochemical oxygen demand measured after five days (BODS) of the
sidestream is estimated to be 250 mg/L.
Because the Regional Sludge Facility operates 12 hours per day during design
conditions, an equalization basin is needed so that the sidestream flow can
be discharged to the Central Subregional WWTP at a constant rate. A 55 -foot
diameter equalization basin with a 21 -foot sidewater depth is thus included
in the design. This basin is able to store one day's sidestream flow for
discharge during off-peak hours. Included in the equalization basin is a
diffused aeration system capable of maintaining the dissolved oxygen content
of the sidestream at 2.0 mg/L which will maintain aerobic conditions. The
airflow will also keep the solids in suspension. This will prevent the
sidestream waste from settling or putrefying, thereby reducing odor
potential. Additionally, the basin is covered with a geodesic dome to ensure
positive odor control. The air stream is treated at the common odor control
system.
The onsite sidestream pump station is designed to pump a flow of 1.110 gpm.
This rate allows draining of the equalization basin in Tess than 6 hours.
The pump station is valved so that sidestream flow can be pumped to the
equalization basin or the Central Subregional WWTP.
PROJECT COST ESTIMATE
An estimate of the capital costs for the project has been developed and is
included in Table 7. The total construction bid amount is $4,600,000. An
M. VRB2/5
6706-031
TABLE 6
SIDESTREAM FLOWS OF THE
REGIONAL SLUDGE FACILITY
Process
Maximum Month
Sidestream Flow
(gpd)
Grease Concentrator 5,740
Belt Filter Press:
Filtrate 228,840
Washwater 104,910
TOTAL 339,490
1
26
M. VRB/4
9/12/91
TABLE 7
PROGRAM COST ESTIMATE
FOR REGIONAL SLUDGE FACILITY (1)
Item Estimated Cost
Total Construction Bid Amount (2): $4,600,000
I
Construction Contingency (3) $ 460.000
r
Estimated Engineering Costs (4):
( Design $ 286.000
Special Services 39,000
Bidding Services 25,000
General Services 112,000
Resident Services 255,000
' Start-up Services 81,000
r
Total Estimated Engineering Costs
Total Estimated Program Costs
$ 798,000
$5,858,000
(1) Does not include an estimated $ 120.000 of County administrative costs to
be defrayed from funds on hand.
(2) Taken from apparent low bid for the project.
(3) Equals 10 percent of Total Construction Bid Amount.
(4) Taken from page 6 of the July 3, 1989 Cost Recovery Report.
M.VRB2/8
27
•
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 28
amount of 10 percent of the total construction cost is added as an allowance
for contingency. Engineering costs for the various categories listed in
Table 7 are estimated to total $798,000. Total program costs are thus
estimated as $5.858,000.
PROJECT FUNDING AND FINANCIAL REQUIREMENTS
FUNDING OF CAPITAL COSTS
Two sources have been identified for initial financing of the project. One
source is the 1991 Bonds, for which this report has been prepared. The other
financing source for the capital costs of the project is a grant offer from
the FDER. Table 8 indicates the relative amounts of each estimated for this
project.
The current estimated grant amount is $1.2 million, although this amount
remains uncertain at this time. The remaining local share of cost requiring
financing will be verified after the State has determined the actual amount
of the grant.
As shown in Table 8, the preliminary estimated local share of capital cost is
$4.66 million. Should this entire amount be debt financed by the 1991 Bonds,
it is estimated to require approximately $5.6 million face amount of bonds,
including allowances for debt issuance costs, capitalized interest, and debt
service reserve requirements. Assuming a 25 -year level term debt issue at an
average coupon rate of 6.75 percent, annual principal and interest costs are
estimated to be approximately $480,000. This annual amount does not include
any reduction for interest earnings on the debt service reserve fund. Again,
this analysis assumes the entire local share of capital costs to be debt
M. VRB2/5
Mt
TABLE 8
SUMMARY OF PROGRAM COSTS AND FINANCING
Item Estimated Amount
Total Estimated Program Costs (1) $5.858,000
Less: Estimated Grant (2) 1.200,000
Yields: Estimated Local Share $4.658.000
Plus: Debt Service Reserve. Capitalized Interest.
and Issuance Costs (3) 942,000
Yields: Estimated Face Amount of Bond Issue to
Finance Local Share $5.600.000
Annual Debt Service Requirements:
Estimated Principal and Interest (3) (4) $ 480.000
(1) Taken from Table 7.
(2) Estimated amount subject to finalization by regulatory agencies.
(3) Estimate provided by the underwriter.
(4) Does not include a reduction for interest income on the debt service
reserve fund.
M.VRB2/9
29
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 30
financed and does not allow for the possibility of contributions from other
sources such as impact fees. As indicated above, after the actual amount of
the grant is determined. the local share of costs to be financed and
resulting annual debt service costs can be refined.
OPERATION AND MAINTENANCE EXPENSES
Operation and maintenance (O&M) expenses are projected in Table 9. Total O&M
costs have been estimated in 1991 cost levels for the first full year of
operations at approximately $204,000. This amount consists of $ 182,500 for
sludge related costs plus the balance of $21,500 related to septage and
grease waste treatment. For projection purposes, the costs are further
disaggregated into fixed and variable components. Fixed costs are those
which will not vary with changes in waste quantities delivered to the
Regional Sludge Facility, and consist of labor and billing costs. Variable
O&M costs are all other costs, including electricity, chemicals, solids
residual hauling, landfill disposal, and sidestream treatment. Fixed costs
are projected by escalating them at an annual rate of 4 percent to reflect
the anticipated effects of inflation. Variable costs are inflated by a
somewhat higher rate of 5 percent annually, compounded by the projected
annual percentage change in waste quantities delivered.
Because the Regional Sludge Facility will not be completed and placed into
operation until the middle of Fiscal Year 1993, no O&M costs are projected
for Fiscal Year 1992, and only half the total annual cost is projected for
Fiscal Year 1993. Fiscal Year 1994 is anticipated to be the first full year
of operation, and this is the reason for the large increase in that year over
Fiscal Year 1993, with much smaller annual increases thereafter.
M . VRB2 /5
TABLE 9
PROJECTION OF ANNUAL OPERATION AND MAINTENANCE EXPENSES
Fiscal Year
Expense Item 1992 1993 1994 1995 1996 1997
Sludge Expenses:
Fixed Costs (1) $0 $ 57,000 $ 119.000 $ 124,000 $129,000 $134,000
Variable Costs (2) 0 45,000 103,000 118,000 138,000 160,000
TOTAL SLUDGE
EXPENSES $0 $102,000 $222,000 $242,000 $267,000 $294,000
Septage & Grease Expenses:
Fixed Costs (1) 0 6,000 14,000 15,000 16,000 17,000
Variable Costs (3) 0 5,000 11,000 12.000 13,000 14.000
TOTAL SEPTAGE AND
GREASE EXPENSES $0 $ 11,000 $ 25,000 $ 27.000 $ 29,000 $ 31,000
TOTAL EXPENSES $0 $113,000 $247,000 $269,000 $296,000 $325,000
(1) Projected to grow at an annual rate of 4.00%.
(2) Projected to inflate at an annual rate of 5.00%.
compounded by the growth in sludge quantities
delivered as projected in Table 2.
(3) Projected to inflate at an annual rate of 5.00%.
compounded by the growth in septage and grease
quantities delivered as projected in Table 2.
M.VRB2/10
31
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 32
NET REVENUE REQUIREMENTS RELATED TO SLUDGE WASTES
Table 10 develops the annual revenue requirements related to the treatment
and disposal of sludge at the Regional Sludge Facility. O&M costs are taken
from Table 9. Annual debt service requirements are based upon Table 8. It
is assumed that debt service requirements will not commence until the middle
of Fiscal Year 1993. and only half of an annual debt service payment will be
needed during that year.
Revenues will be received from generators of septage wastes and from owners
of grease traps. A volume charge of $ 105 per 1.000 gallons is forecasted for
all septage Toads received at the Facility in Fiscal Year 1993. The revenue
projections in Table 10 for septage are based on $ 105 per 1000 gallons in
conjunction with half of the projected waste quantities from Table 2, to
provide for conservatism due to price sensitivity. (The assumption of full
tank truck loads will be made in charging septage haulers). Initially, all
septage generated within the County, including within the corporate limits of
the City of Vero Beach, will be brought to the Regional Sludge Facility.
If septage customers within the City become sewered, the City would be
required to compensate the County, to a certain extent, for resulting lost
revenues. Such a fee would recover that portion of the capital cost
attributable to the septage capacity requirements of the City for the amount
of their discontinued septage deliveries. Paragraph 2.2 of the Septage
Treatment and Disposal Agreement between Indian River County and the City of
Vero Beach, executed May 1, 1990, provides that the City agrees to collect
M.VRB2/5
11
Item
TABLE 10
PROJECTION OF ANNUAL REVENUE REQUIREMENTS
FROM UNIFORM CHARGES RELATED TO SLUDGE
Fiscal Year
1992 1993 1994 1995 1996 1997
Revenue Requirements:
Operation & Maint.
Expenses (1) $0 $113,000 $247,000 $269,000 $296,000 $325.000
Debt Service (2) 0 240,000 480,000 480,000 480,000 480.000
TOTAL REVENUE
REQUIREMENTS $0 $353.000 $727.000 $749,000 $776,000 $805.000
Revenues from Other
Sources:
Charges for Septage(3) $0 $ 72.000 $144.000 $143.000 $142.000 $141.000
Charges for Grease (4) 0 41,000 86,000 90,000 93,000 96,000
TOTAL OFFSETTING
REVENUES $0 $113.000 $230,000 $233,000 $235,000 $237,000
CHARGES RELATED
TO SLUDGE (5) $0 $240,000 $497,000 $516.000 $541.000 $568.000
( I ) Taken from Table 9.
(2) Based on Table 8. Assumes no debt service payments required during
construction; hence, no debt service due during Fiscal Year 1992, and
only half an annual debt service requirement due during Fiscal Year
1993.
(3) Equals half of the projected volume of septage from Table 2 multiplied
by a charge of $105 per 1,000 gallons. Charges are assumed to commence
during the second half of Fiscal Year 1993.
(4) Equals half the projected number of grease traps from Table 2
multiplied by an annual charge of $325 per grease trap. Charges are
assumed to commence during the second half of Fiscal Year 1993.
(5) Equals Total Revenue Requirements less Total Offsetting Revenues.
33
M.VRB. 2/11
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 34
and pay to the County a one-time fee for the lost revenue that will occur
should the City provide, or allow others to provide, sewer service to any
septage customers of the County, including those residing within the City.
This one-time fee is set initially at $300 per equivalent residential unit
(ERU) and will be reduced by $15 per year over a 20 -year period. Revenues
will also be generated from an annual estimated charge of $325 for each
active grease trap in the County. The County anticipates the adoption of an
ordinance in the near future which will set forth rates and charges for
grease. Therefore, for conservatism, grease revenue equals half of the
projected number of grease traps as shown previously in Table 2 multiplied by
the $325 annual charge. Table 10 assumes that implementation of the charges
does not commence until the middle of Fiscal Year 1993 when the Regional
Sludge Facility is placed into service.
By deducting the revenues anticipated from septage and grease. the net
revenue requirements remaining, which are attributable to sludge. are
determined. The mechanism for recovery of the costs associated with sludge
will be through a portion of the uniform fees and wastewater user charges
levied on County wastewater service customers. The April 1, 1991 "Indian
River County Water and Wastewater Fee and Rate study Report", prepared by
another consultant, estimated total costs associated with the Regional Sludge
Facility as approximately $1,037,000 in Fiscal Year 1993. The increase in
the wastewater user charges adopted by the Commission incorporates recovery
of these costs.
Table 11 presents the summary of projected revenues, expenses, net revenues
and debt service. Commencement of operations, and the resultant operating
and debt service costs, are anticipated in the middle of Fiscal Year 1993.
M.VRB2/5
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 35
The adopted increase in uniform charges effective October 1. 1991, with any
subsequent increases thereafter, are projected to generate the indicated
revenues required for sludge treatment. These projections assume $1,037,000
is generated in Fiscal Year 1993 based on the adopted rates and with
increases of 5% annually thereafter due to system growth. Revenues for
septage and grease are taken from Table 10. No other revenue sources related
to the Regional Sludge Facility are anticipated at this time.
Debt service costs are based on net funding the construction fund,
capitalized interest fund. and providing for issuance costs and a debt
service reserve fund from the proceeds of the issue. The annual principal
and interest requirements are estimates provided by the underwriter.
Operating expenses are also taken from the projections developed in Table 10.
SUMMARY AND CONCLUSIONS
The need exists for a Regional Sludge Facility in Indian River County.
In addition to being necessary. the February 1988 "Indian River County
Wastewater Master Plan" demonstrates that the proposed project will provide a
cost-effective method for addressing the management of sludge, septage. and
grease in Indian River County.
We have projected the costs of the Regional Sludge Facility, both capital and
operating costs. These costs are anticipated to commence in the middle of
Fiscal Year 1993 when construction of the facility has been completed.
Recovery of the cost of grease treatment is anticipated to be through an
annual bill forcasted to be $325 for each active grease trap in service. The
cost of septage treatment will be entirely through a volume charge at an
estimated level of $105 per 1,000 gallons of septage delivered to the
M. VRB2/5
Item
TABLE 11
PROJECTION OF REVENUES, EXPENSES, DEBT SERVICE, AND NET REVENUES
Fiscal Year
1992 1993 1994 1995 1996 1997
Revenues:
Uniform Charges
Related to Sludge (1)
Charges for Septage (2)
Charges for Grease (2)
Other
so
0
0
0
TOTAL REVENUES $0
OPERATING EXPENSES (2) 0
NET OPERATING
REVENUES $0
ANNUAL DEBT
SERVICE (4)
$0
NET REVENUES $0
$1,037,000
72,000
41,000
0
$1,150,000
113,000
$1,037.000
$ 240,000
$ 797,000
$1,089,000
144,000
86,000
0
$1,319,000
247,000
$1,072,000
$ 480,000
$ 592,000
$1,143,000
143,000
90,000
0
$1,376,000
269,000
$1,200,000
142,000
93,000
0
$1,435,000
296,000
$1,260,000
141,000
96,000
0
$1,497,000
325,000
$1.107,000 $1.139.000 $1.172,000
$ 480,000 $ 480,000 $ 480,000
$ 627,000 $ 659,000 $ 692,000
(1) To be generated from increase in uniform wastewater user charges
October 1, 1991, and subsequent increases thereafter as necessary.
(2) Taken from Table 10.
(3) No other miscellaneous revenues assumed to be generated from Regional
Sludge Facility operations.
(4) Estimated principal and interest requirements provided by the
underwriter. Does not include coverage.
36
M.VRB.2/12
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 37
facility. In charging for septage delivered, the presumption of full tanks
will be made. Recovery of the cost of sludge will be through the monthly
billings to wastewater service customers of the County.
In summary, we conclude that:
o Construction of the Regional Sludge Facility is both necessary and
cost-effective, is technically sound, and conforms to good engineering
practices.
o The use of an annual charge of $325 per grease trap, and a volume
charge of $ 105 per 1,000 gallons of septage, are estimated charges
that recover the proportionate share of cost of these waste types.
o The Wastewater Treatment Division of the Utility Services Department
is well qualified to manage and operate the Regional Sludge Facility.
o The projection of revenues and costs is reasonable for the Regional
Sludge Facility, and will be sufficient to meet all relevant covenants
of the resolution authorizing the 1991 Bonds.
o The life expectancy of the Facility is reasonable and is expected to
exceed the 25 year term of the 1991 Bonds.
o The project to be financed out of the bond proceeds is intended to
ensure that the Indian River County Department of Utility Services
continues to comply with all local, state, and federal regulatory
requirements.
M. VRB2/5
Honorable Chairman and
Board of County Commissioners
9/16/91
Page 38
We thank you for this opportunity to be of service to the County. Should you
have any questions. please do not hesitate to contact me.
Very truly yours,
CAMP DRESSER & McKEE INC.
Daniel T. Anderson. P.E.
DTA/ELA/LMA/pg
Attachments
File: 6706 -31 -RT
M.VRB2/5
/'I ✓
E. Lawren Adams, Jr. P.E.
Vice President
11
Il
Specimen Municipal Bond Insurance Policy
Fimnw•iul hoar sus• In,uruswe
(irnpuuc
175 Winer Street
New lilrk. NV 10038.4072
(2121(107-31100
(800) 352.0001
AGECapital Company
FGICW
Municipal Bond
New Issue Insurance Policy
Policy Number:
Control Number:
Bonds: Premium:
Financial Guaranty Insuratrne Company ("Financial Guaranty). a New
cmailleration of the payment of the premium and subject to the t of d
and inevoeably agrees to pay to Citibank. N.A., or its
benefit of Bondholden, that portion of the principal
"Bonds") which shall become Due for Pay
Financial Guaranty will make such
becomes Due kr Payment or on
have received Notice of
the face amount
Nonlay
(i)
J
hal Of interest
1 Financial Guaranty shall
ill disburse to the Bondholder
west but is unpaid by reissue of
gent, us form reasonably satisfactory to it. of
of dse principal or intrust Dow for Payment and
of assignment. that all of the Bondholder's rights to
it Payment shall tsvn ilp oti vest in Financial Guaranty. UIMMI
Iv shall bemire the owner of tlw Bond. appurtenant 1/1111111111 *w nght to
MI Such Bond and shall lw fully subrngi.i d (1i all of the liondI. Mer s rights
MMlholdef s right to paynwnt thereof.
non -cancellable for au*' reason. "I'lw Kee lival "n lois Paltry n u"1 rrfondubll• for au% 9•44,1111.
the'paytnent 14 the Bands prior to their maturity. This Policy 414ws not Insure against 14455 of any
vrnent premium which may at any time lw payable with respect to any Iklnd.
As used herein, the term -Bondholder- imams. a5 to a particular Iknnl. the 'wous other than the Issuer
who, at the time of Nonpayment. is entitled under tlw terms of such 11111.41 to payment thereof. -Due for
Payment" unions, when referring to dse principal 44 a Bond. doe stated in uurity date thereof or the dale on
which die same shall have hewn duty balled for IIIaulatory sinking fund redemption and Mars lou refer to
any earlier date /11 which payment is due by reason of call for redemption (otllrr than by mandatory sinking
fund redo 11ptMlrl). atu4raoin, a4' od1rr 1111Va1Mr1111•111 14 maturity 111111 1114'11115. when refenuig to 11111.9%1 119 11
SM: SerVi1Y• 11411,k II,IVI by I•ilallll•Iill Guaranty In,anum. Gangway hinder 114,4.1• (rant Ib patrol Ivinpllul. I Al: Corporation
l' a,,, 9000 18/90)
Page 1 of 2
Pinutw•ial Guaranty lttauralw•r
I ANIIirisit '
1 5 'uierStmrt
New liwk. NV IIKEI8.4972
(212) (i07.3000
(800) :152-1001
A GE Capita Company
Municipal Bond
New Issue Insurance Policy
FG1C_
Bond, the stated date for payment of interest. "Nonpayment" in aspect of a Bond mans the failure of the
low to have provided sufficient funds to the paying agent for payment in full of all principal and interest
Due kr Payment on such Bond. "Notice" mans telephonic or telegraphic notice, subsequently confirmed•
writing, or written notice by registered or certified mail, from a Bondholder or a paying agent for
to financial Guaranty. "Business Day" means any day oder than a Saturday. Sunday or a
the Fiscal Agent is authorized by law to remain dosed.
In Witness Whereof, Financial Guaranty has awed this Policy to be affix
signed by its duly authorized officers in facsimik to become effective and Is
by virtue of the countersignature of its duly authorized re ftesen
dent
Authorized Representative
gen that it has ngnrd 11 perform the duties of Pis tt) . trot under the. I'olu
Authorized Meer
SM: Servim mark used by Financial (uunmty Insurance company ler limns• from u. panes InuyumI (:i : Cur)rvuuuu
Mircm 9(KK) (8N90 •
Page 2 of 2
Financial (;t.araltty Insurance
Company
175 1I ter Street
New York. NV 100:18-4972
(212) 607-3004)
(800) 352.0001
AGECapital Company
Endorsement
To Financial Guaranty Insurance Company
Insurance Policy
Policy Member:
Con nol Nwnber.
h is further understood that the term "Nonpayment" in respect of a Bond includes
or interest made to a Bondholder by or on behalf of the issuer of such pond w
such Bondholder pursuant to the United States Bankruptcy (:me Iw a trust
with a final, nonappealable order of • noun having competent ju ' inn.
In Witness Whereof, Financial Guaranty has caused di'
and to be signed by iut duly authorized officers i
Guaranty by virtue of the countersignature
FO W
°pot ncial
ledged as of the Effective I)nle written above:
Authorized Officer
Citibank, N.A., as Misdul Agent
Senior Vice President
Authorized Representative
SM: Spryly'. Durk Med by Fauna -sal Guaranty IIF,Ilmaee Caminay lir fiiraw• Proal n., parent eoaqum. F'(;I(: Cor]Ninaam
Form E-0IO2 (8/'H) •
Page 1 of I
11
Appendix F
Form of Opinion of Bond Counsel
#6426.1
RHOADS & SINON
ATTORNEYS AT LAW
SUITE 301
299 WEST CAMINO GARDENS BOULEVARD
BOCA RATON, FLORIDA 33432
Telephone (407) 395-5595
Re: Indian River County, Florida
Aggregate Principal Amount of
Water and Sewer Revenue Bonds,
Series 1991
Dated as of , 1991
OPINION
We have acted as Bond Counsel in connection with the authorization,
issuance and sale of the Water and Sewer Revenue Bonds, Series 1991, dated as of
October 1, 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 Bonds under the Resolution
hereinafter defined. Water and Sewer Revenue Refunding Bonds, Series 1989, dated
as of April 15, 1989, in the original aggregate principal amount of $6,510,000
(the "Series 1989 Bonds"), of the County have been issued and are currently
outstanding. The Series 1989 Bonds, the Series 1991 Bonds and any Additional
Parity Bonds 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 Chapters 125 and 159, Florida Statutes
(1990), as amended, and Resolution No. 89-19, duly adopted by the Board of County
Commissioners of the County (the "Board") on February 14, 1991, as amended and
supplemented, including without limitation the amendments and supplements made
by Resolution No. 91-81, duly adopted by the Board on July 23, 1989, as amended
and supplemented (collectively, the "Resolution"), and other applicable
provisions of law.
Under the Resolution,
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, has
heretofore acquired and/or constructed water and sewer systems located in the
County which, together with any and all improvements, extensions and additions
thereto hereafter constructed or acquired and any physically independent water
or sewer system hereafter made a part of the System by resolution of the Board,
together with any and all improvements, extensions and additions thereto
thereafter constructed or acquired, are herein referred to as the "System".
The County, pursuant to power and authority vested in it by law, has
determined to acquire and construct a regional sludge treatment facility (the
"1991 Project"), and has declared in the Resolution that the 1991 Project shall
constitute part of the System. The County also has determined to retire the
Water Revenue Bonds, Series 1988, Anticipation Notes, dated as of December 1,
1988 (the "Series 1.988 Notes"), hereCofore issued by the County.
-z-
The Resolution provides that the proceeds of the Series 1991 Bonds,
together with other available funds of the County, are to be used for the
following purposes, inter ilia: (i) to acquire and construct the 1991 Project,
(ii) to retire the Series 1988 Notes, (iii) to make a deposit to the Reserve
Account established under the Resolution, and (iv) to pay costs and expenses of
issuance of the Series of 1991 Bonds and retirement of such Series 1988 Notes,
all as more fully provided in the Resolution.
The Resolution 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 alia, to preserve the
Federal income tax exemption of the interest on the Series 1991 Bonds.
The principal of and interest on the Bonds are payable solely from
and secured by a lien on and pledge of the Pledged Funds, as defined in the
Resolution, which include the Net Revenues, as that phrase is defined in the
Resolution, of the System. Reference is made to the Resolution for terms and
conditions upon which certain receipts and revenues pledged under the Resolution
may be released from such pledge, and for terms and conditions upon which
additional bonds having a lien upon and right to payment from such Net Revenues
on a parity with the Series 1989 Bonds and the Series 1991 Bonds may be issued
from time to time.
The Series 1991 Bonds shall not constitute a general obligation or
indebtedness of the County, and the holders 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 and interest on the Series 1991 Bonds.
- 3 -
11
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 that are relevant to the issuance and sale of
the Series 1991 Bonds; a certified copy of the Resolution; certain documents
required by the Resolution to be furnished as conditions precedent to issuance
and delivery of the Series 1991 Bonds; an affidavit 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
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, to acquire, construct, own,
- 4 -
operate and maintain the 1991 Project, and to own, operate and maintain the
System.
2. The Resolution has been duly adopted by the County and is a
valid and enforceable instrument.
3. 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, as that term is defined in the Resolution.
4. Interest on the Series 1991 Bonds is 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.
5. 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.
6. 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.
5
II
IY�
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. Steck
1
11
Appendix G
Certain Defined Terms Used Herein
of law.
CERTAIN DEFINED TERMS USED HEREIN
"Act" shall mean Chapters 125 and 159, Florida Statutes, u amended, and other applicable provisions
"Additional Parity Bonds" shall mean additional bonds issued in compliance with the terms, conditions,
and limitations contained in the Resolution which have an equal lien on the Pledged Funds and rank equally in
all respects with all of the Bonds as to lien and security for payment.
"Authorized Investment,' shall mean any of the following if and to the extent the same are, at the time.
legal for investment of County funds:
a.
direct obligations of the United States of America and securities fully and unconditionally
guaranteed as to the timely payment of principal and interest by the United States of America
("Direct Obligations");
b. direct obligations and fully guaranteed certificates of beneficial interest of the Export -Import
Bank of the United States; senior debt obligations of the Federal Home Loan Banks;
debentures of the Federal Housing Administration; guaranteed mortgage-backed bonds and
guaranteed pass-through obligations of the Government National Mortgage Corporations;
guaranteed Title XI financing of the U.S. Maritime Administration; mortgage-backed securities
and senior debt obligations of the Fake) National Mortgage Association; and participation
certificates and senior debt obligations of the Federal Home Loan Mortgage Corporation
(collectively, "Agency Obligations.);
c. direct obligations of any state of the United States of America or any subdivision or agency
thereof whose unsecured general obligation debt is rated "A3' or better by Moody's Investors
Service MJ "A-" or better by Standard & Poor's Corporation, or any obligation fully and
unconditionally guaranteed by any state, subdivision or agency whose unsecured general
obligation debt is rated "A3" or better by Moody's Investors Service aro "A-" or better by
Standard & Poor's Corporation;
d, commercial paper rated "Prime.'" by Moody's Investors Service and "A-1" or better by
Standard 4 Poor's Corporation:
a. ia11 6i t‘y Ntt oe.t{34
or better by Standard
& Poor's Corporacion;
f. deposits, Federal funds or bankers acceptances of any domestic bank, including a branch office
of a foreign bank which branch office is located in the United States, provided legal opinions
are received to the effect that full and timely payment of such deposit or similar obligation is
enforceable against the principal office or any branch of such bank, which:
(1) has an unsecured, uninsured and unguaranteed obligation rated "Prime -I" or "A3" or
better by Moody's Investors Service atc "A-1" or "A-" or better by Standard &
Poor's Corporation, or
(2) is the lead bank of a parent bank holding company with an uninsured, unsecured and
unguaranteed obligation meeting the rating requirements in (1) above;
g. deposits of any bank or savings and loan association which has combined capital, surplus and
undivided profits of not leas than $3 million, provided such deposits are fully insured by the
Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation;
b. investments in a money-market fund rated 'Am" or 'Am -G' or better by Standard & Poor's
Corporation;
repurchase agreements with a term of one year or lea wills any institution with debt rated
'AA' or commercial paper rated 'A-1' (in each case by Standard & Poor's Corporation);
repurchase agreements collateralized by Direct Obligations or Agency Obligations with any
registered broker/dealer subject to the Securities investors' Protection Corporation jurisdiction
2L any commercial bank, if such broker/dealer or bank has an uninsured, unsecured and
unguaranteed obligation rated 'Prime -1' or 'A3' or better by Moody's Investors Service, and
"A-1" or 'A-' or better by Standard & Poor's Corporation, provided:
(1) a master repurchase agreement or specific written, repurchase agreement governs the
transaction; and
(2) the securities are held free and clear of any lien by the Trustee or an independent
third party acting solely u agent for the Trustee, and such third party is (a) a Federal
Reserve Bank, (b) a bank which is a member of the Federal Deposit Insurance
Corporation and which has combined capital, surplus and undivided profits of not less
than $25 million, or (c) a bank approved in writing for such purpose by Financial
Guaranty Insurance Company, and the Trustee shall have received written
confirmation from such third party that it holds such securities. free and clear of any
lien, u agent for the Trustee; and
a perfected first security interest under the Uniform Commercial Code, or book entry
procedures prescribed at 31 C.F.R. 306.1 et seq. or 31 C.F.R. 350.0 et seq. in such
securities is created for the benefit of the Trustee; and
(3)
(4) the repurchase agreement has a term of thirty days or less, or the Trustee will value
the collateral securities no Tess frequently than monthly and will liquidate the collateral
securities if any deficiency in the required collateral percentage is not restored within
two business days or such valuation; and
the repurchase agreement matures at least ten days (or other appropriate liquidation
period) prior to a debt service payment date, and
(6) the fair market value of the securities in relation to the amount of the repurchase
obligation, including principal and interest, is equal to at least 100%; and
k. investment agreements with a bank or insurance company which has an unsecured, uninsured
and unguaranteed obligation (or claims -paying ability) rated "A3" or better by Moody's
Investors Service and "A-" or better by Standard & Poor's Corporation, or is the lead bank of
a parent bank holding company with an uninsured, unsecured and unguaranteed obligation
meeting such rating requirements, provided:
(S)
(1)
interest is paid at least semi-annually at a fixed rate during the entire term of the
agreement, consistent with bond payment dates, and
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(2) moneys invested thereunder may be withdrawn without any penalty, premium, or
charge upon not more than one day's notice (provided such notice may be amended or
cancelled at any time prior to the withdrawal date), and
(3) the agreement is not subordinated to any other obligations of such insurance company
or bank, and
(4) the same guaranteed interest rate will be paid on any future deposits made to restore
the reserve to its required amount, and
(5) the Trustee receives an opinion of counsel that such agreement is an enforceable
obligation of such insurance company or bank.
"Board" shall mean the Board of County Commissioners of Indian River County, Florida.
"Bond Amortization Account" shall mean the account crested pursuant to the Resolution for the purpose
of receiving and maintaining funds for the early retirement of Term Bonds.
"Bonds" shall mean the Series 1991 Bonds together with the Series 1989 Bonds and any Additional
Parity Bonds hereafter issued.
"1989 Bond Insurance Policy" shall mean the municipal bond new issue insurance policy issued by the
Bond Insurer guaranteeing the payment of principal of an interest on the Series 1989 Bonds.
"1991 Bond Insurance Policy" shall mean the municipal bond new issue insurance policy issued by the
Bond Insurer guaranteeing the payment of principal of and interest on the Series 1991 Bonds.
"Bond insurer" shall mean Financial Guaranty Insurance Company, a New York stock insurance
company, or any successor thereto.
"Bond Registrar" shall mean the Bond Registrar to be determined by subsequent resolution of the
Board.
"Consulting Engineers" shall mean such qualified and recognized consulting engineers, havinga
nationwide and favorable reputation for skill and experience in the construction and operation of systems such as
the System at the time retained by the County to perform the acts and carry out the duties as provided by the
Resolution for the Consulting Engineers.
"Costs" shall mean all expenses necessary, appurtenant, or incidental to the acquisition or construction
of any property, real, personal, or mixed, deemed necessary or desirable for carrying out the purposes of the
System, including, without intending to limit the generality of the foregoing, the cost of any land or interest
therein or of any fixtures, equipment, or personal property necessary or convenient therefor; costs of acquiring
any water or sewer system or other property in place, or any undivided interest therein, which can be operated
as part of the System or which may be declared by resolution of the Board to be part of the System;
engineering, legal, and financing expenses; expenses for estimates of costs and of revenues, expenses for
surveys; the fees of fiscal agents, financial advisors, and consultants; administrative expenses relating solely to
such acquisition or construction; the capitalization of interest for a reasonable period after the issuance of Bonds
to tinance any portion of the Costs of such acquisition or construction; the creation and establishment of
reasonable reserves for debt service and operation and maintenance; the discount on the sale of Bonds to finance
any portion of the Costs of such acquisition or construction; and such other costs and expenses as may be
necessary or incidental to such acquisition or construction.
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"County" shall mean Indisn River County, Florida.
'Federal Securities" shall mean direct obligations of, or obligations the principal of and interest on
which are unconditionally guaranteed by, the United States of America, which are not redeemable prior to
maturity at the option of the obligor.
"Fees in lieu of Franchise Fees" shall mean the fees paid by the Utility Services Department of the
County to the County in consideration for the use of public streets and rights -of --way in the County and to
defray costs incident to the regulation by the County of the services and facilities of the Utility Services
Department of the County.
'Fiscal Year" shall mean the period beginning with and including October 1 of each year and ending
with and including the next September 30.
"Franchise Fees" shall mean the fees paid by water and/or sewer utilities, other than the Utility
Services Department of the County, to the County in consideration for the use of public streets and rights-of-
way in the County and to defray costs incident to the regulation by the County of the services and facilities of
such utilities.
"Government" shall mean the United States of America, acting by and through the Farmers Home
Administration, United States Department of Agriculture.
'Impact Feet" shall mean the fees or charges imposed upon new customers of the System to provide
funds for the payment of all or a portion of the costs and expenses of additions. extensions and improvements to
the System made necessary by the inclusion of such new customers.
"Net Revenues" shall mean the Revenues less Operating Expenses.
"1991 Construction Fund" shall mean the Water and Sewer Revenue Bonds, Series 1991, Construction
Fund established by the Resolution.
"1991 Project" shall mean the regional sludge treatment facility authorized to be constructed, acquired,
furnished, and equipped under the Resolution.
"Operating Expenses" shall mean the current expenses paid or accrued for the operation, maintenance,
and repair of all facilities constituting a part of the System, as determined in accordance with generally accepted
accounting methods, and shall include, without limiting the generality of the foregoing, insurance premiums,
administrative expenses of the County related solely to the System, costs of labor, materials, and supplies used
for such operation, and charges for the accumulation of appropriate reserves for current expenses not annually
recurrent but which are such as may reasonably be expected to be incurred in accordance with such accepted
accounting methods, but shall exclude payments into the Sinking Fund or the Reserve Account therein and any
allowances for depreciation or for renewals or replacements of capital assets of the System.
"Operation and Maintenance Fund" shall mean the account created pursuant to the Resolution for the
purpose of receiving and maintaining funds transferred from the Revenue Fund for the payment of Operating
Expenses.
"Paying Agent" shall mean the Paying Agent to be determined by subsequent resolution of the Board.
"Pledged Funds" shall mean the Net Revenues, together with any other receipts, revenues and funds
pledged in connection with the Bonds.
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"Record Date shall mean the fifteenth (15th) day of the month immediately preceding an interest or
other applicable payment date for the Bonds.
"Registered tanner,' 'Bondholder' or any similar term shall mean any person who shall be the owner
of any outstanding Bond or Bonds u shown on the books of the County maintained by the Bond Registrar.
"Renewal and Replacement Feud" shall mean the account created pursuant to the Resolution into which
funds shall be deposited u therein provided for the purpose of providing funds for payment of the costs and
expenses of renewals and replacements to the System.
"Required Renewal Fred Payments" shall mean the amounts required to be deposited in each month to
the credit of the renewal and replacement fund under Section 3.04(E) of the Senior Lien Bood Resolution so
long as the Senior Lien Bonds are outstanding.
"Reserve Account' shall mean the account in the Sinking Fund created pursuant to the Resolution
whereby a sum at least equal to and sufficient to pay the maximum amount of principal and interest on all
outstanding Bonds becoming due in any ensuing Fiscal year, subject to certain conditions, shall be held.
"Resolution' shall mean Resolution No. 89-19 of the County, as amended and restated by Resolution
No. 89-46 of County, and as otherwise amended, and supplemented, from time to time. including, without
limitation, amendments and supplements made by Resolution No. 91-81 of the County, u amended.
"Revenues" shall mean (i) all receipts and revenues of the County derived from the imposition,
collection, and enforcement of uniform water and sewer service rates, fees and charges for the use of and the
services furnished or to be furnished by the facilities constituting the System, including the earnings and interest
income derived from the investment of the moneys on deposit in various funds and accounts established in
connection with the System, but excluding Surcharges. Impact Fees, Special Assessments. Franchise Fees, and
Fees in lieu of Franchise Fees (the "Uniform Charges"); (ii) all receipts and revenues of the County received
from the operation of the 1991 Project other than receipts and revenues received by the County from the
treatment of septage and grease; (iii) all North Beach Water Surcharges (as hereinafter defined) for services
furnished by the North Beach Water System (as defined hereinafter); (iv) with the consent of the Bond Insurer,
so long as any Series 1989 Bonds or Series 1991 Bonds are outstanding, such Surcharges, Impact Fees, Special
Assessments, Franchise Fees, and Fees in lieu of Franchise Fees as the County. by resolution. may pledge
specifically in connection with the Bonds; and (v) with the consent of the Bond Insurer, so long as any Series
1989 Bonds or Series 1991 Bonds are outstanding, such other revenues of the County as the County, by
resolution, may pledge specifically in connection with the Bonds. "Revenues" shall not include, however, such
receipts and revenues as, from time to time, may be released from the pledge created under the Resolution in
accordance with the terms of the Resolution.
"Revenue Fund" shall mean the account created pursuant to the Resolution into which all Revenues of
the System shall be deposited by the County.
"Senior Lien Bond Resolution" shall mean Resolution No. 82-61 of the County, together with all
amendments and supplements thereto, providing for the issuance and security of the Senior Lien Bonds.
"Senior Lien Bonds" shall mean sewer and water revenue bonds issued to the Government in the
original aggregate principal amount of $9,650,000, which bonds have a right to payment from and a lien on the
Pledged Funds senior to the lien granted for the benefit of holders of Bonds.
Bonds.
"Senior Lien Bonds Debt Service" shall mean the principal and interest payable on the Senior Lien
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"Senior Lias Bonds Reserve Account Payments" shall mean the amounts required to be deposited in
each month to the credit of the reserve account in the sinking fund for the Senior Lien Bonds wider Section
3.04(C)(4) of the Senior Lien Bond Resolution so long as any Senior Lien Bonds are outstanding.
"Series 19188 Notes' shall mean the Indian River County, Florida Water Revenues Bonds, Series 1988,
Anticipation Notes, dated December 1, 1988, issued and outstanding under Resolution No. 88-120 of the
County.
"Series 1989 Bonds' shall mean the Water and Sewer Revenue Refunding Bonds, Series 1989, issued
in the original aggregate principal amount of $6,510,000.
"Series 1991 Bonds" shall mean the Indian River County, Florida Water Revenue Bonds, Series 1991,
authorized to be issued under the Resolution.
"Special A:fessmeru' shall mean the fees. charges and costa lawfully assessed by the County against
properties benefitted by construction or reconstruction of sewer or water facilities and representing an
apportionment of the costs of such improvements to such properties.
"Surcharges' shall mean special rates, fees, and charges for water or sewer service imposed for a
limited time and purpose by ordinance adopted by the Board and in addition to the usual uniform water and
sewer service rates. fees, and charges of the County.
"System" shall mean the water and sewer systems now owned and operated by the County. wherever
located in the County, together with any and all improvements, extensions, and additions thereto hereafter
constructed or acquired, and any physically independent water or sewer system hereafter made a part of the
System by resolution of the Board together with any and all improvements. extensions, and additions thereto
thereafter constructed or acquired. Without intending to limit the generality of the foregoing sentence, "System'
shall include all property, real, personal, and mixed, rights, powers, licenses. easements, rights of way,
privileges, franchises, and all other property or interests in property of whatsoever nature, including but not
limited to vehicles, rolling stock, buildings, pipes, pumps, machinery, tanks, mains, conduits. meters, and other
equipment, used or useful in connection with ownership, operation, and maintenance of such water or sewer
systems by the County.
"Tenn Bonds' shall mean the Bonds of a series all of which are stated to mature on one date but which
shall be subject to earlier retirement by operation of the Bond Amortization Account.
"Unifornr Charges' shall mean all receipts and revenues of the County derived from the imposition,
collection, and enforcement of uniform water and sewer service rates, fees and charges for the use of and the
services furnished or to be furnished by the facilities constituting the System, including the earnings and interest
income derived from the investment of money on deposit in the various funds and accounts created in
connection with the System, but excluding Surcharges, Impact Fees, Special Assessments, Franchise Fees, and
Fees in lieu of Franchise Fees.
Words importing singular number shall include the plural number and vice versa and words importing
persons shall include firms and corporations or other entities and vice versa.
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E'xAiQ11 C
NEGOTIATED SALE DISCLOSURE STATEMENT
Raymond James & Associated, Inc., 880 Carillon Parkway, St.
Petersburg, Florida, 33716 (the "Underwriter"), the purchaser of
not more than $9,205,000 principal amount of Water and Sewer
Revenue Bond, Series 1991 (the "Bonds") of Indian River County,
Florida (the "Issuer"), pursuant to Section 218.385, Plorilis
Statutes, as amended, hereby states as follows:
1. Th.4 661.1.64Led cAldw .b Cb atld elle amounts tnereot to De
incurred by the Underwriter in connection with the purchase of
the Bonds are as follows:
Nature of Sxsenaeu $atimated Amount
See Attached Schedule 1
Total
2. To the knowledge of the Underwriter, no person has
entered into an understanding with either the Issuer or the
Underwriter, or both, for any paid or promised compensation or
valuable Consideration, directly or indirectly, expressly or
implied, to act solely as an intermediary between the Tuuuer and
the Underwriter or to exercise or attempt to exercise any
influence to effect any transaction in the purchase of the bonds
described above.
3. The underwriting spread is expected to be as set forth
on Schedule 1.
4. The management fee is expected to be as set forth on
Schedule 1.
5. No fee, bonus or other compensation will be paid by the
Underwriter in connection with the issuance of the Bonds to any
person not regularly employed or retained by the Underwriter,
except as listed in paragraph 1 above.
IN WITNESS WHEREOF, the undersigned have executed thin
statement on behalf of the Underwriter on this 24th day of
September, 1991.
#8159.1
RAYMOND JAMES & ASSOCIATE,S, INC.
BY:
(Tit U�c. t.4.4..*
SCHEDULE 1
INDIAN RIVER COUNTY, FLORIDA
Raymond James Underwriting Fee
$9,205,000 Water and Sewer Revenue Bonds, Series 1991
Per $1.000 TOTAL
N6anagement Fee $ 2.66 $ 24,485.30
71akedown (Sales Credit) 7.27 66,920.35
Underwriting Risk -0- -0-
Expenses (See detail below) _3..,.Q/ 28.259.35
$ 13,.OQ $119,665.00
Original Issue Discount 114, 888.40
TOTAL, g2.3. .1 , 5 53.4 0
SUMMARY Qin UNDERWRITER'S EXPENSES
Clearing the Bonds (.30 per 1,000)
Closing, Travel, Miscellaneous
t ISRB/PSA Fees
Underwriters Counsel
Computer Analysis
$ 2,761.50
1,841.00
1,104.60
13,347.25
9.205.00
28, 259.3
$3.07 per $1,000