HomeMy WebLinkAbout1995-075RESOLUTION NO. 1995-075
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
INDIAN RIVER COUNTY, FLORIDA, SUPPLEMENTING RESOLUTION
NO. 95-63; PROVIDING FOR THE SALE OF NOT TO EXCEED
$15,000,000 GENERAL OBLIGATION BONDS OF INDIAN RIVER
COUNTY, FLORIDA; FIXING REDEMPTION PROVISIONS AND SERIES
DESIGNATION FOR THE BONDS; SETTING FORTH THE FORM OF THE
NOTICE OF BOND SALE AND SUMMARY NOTICE OF BOND SALE
RELATING TO THE SALE OF SUCH BONDS; DIRECTING PUBLICATION
OF THE SUMMARY NOTICE OF SALE RELATING TO SUCH BONDS;
PROVIDING FOR THE OPENING OF BIDS RELATING TO THE SALE OF
THE BONDS; SETTING FORTH THE OFFICIAL NOTICE OF SALE AND
BID FORMS; PROVIDING THAT SUCH BONDS SHALL BE ISSUED IN
FULL BOOK ENTRY FORM AND AUTHORIZING THE EXECUTION AND
DELIVERY OF A LETTER OF REPRESENTATION WITH THE
DEPOSITORY TRUST COMPANY; APPROVING THE FORM OF A
PRELIMINARY OFFICIAL STATEMENT; COVENANTING TO PROVIDE
CONTINUING DISCLOSURE; AUTHORIZING THE SELECTION OF A
REGISTRAR AND PAYING AGENT; AUTHORIZING THE SELECTION OF
A PROVIDER OF MUNICIPAL BOND INSURANCE; PROVIDING CERTAIN
OTHER MATTERS IN CONNECTION THEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, on May 16, 1995, the Board of County Commissioners of
Indian River County, Florida (the "County" or the "Issuer") enacted
Resolution No. 95-63 (the "Resolution") to provide for the issuance
of not to exceed $26,000,000 Indian River County General Obligation
Bonds (the "Bonds") payable from the County's ad valorem taxes
without limit on all taxable property in the County as provided in
the Resolution; provided, however, that the Bonds shall be
structured in such a manner that at the time of issuance of any
series thereof, the millage rate required to make the maximum
annual payment of the principal of and interest on the Bonds shall
not exceed 1/2 mil of the then assessed value of all lands situated
in the County subject to ad valorem taxation; and
WHEREAS, it is in the best interest of the County to provide
for the current public sale of not to exceed $15,000,000 of such
Bonds as the initial series thereof, and to reserve the remaining
$11,000,000 authorized amount for subsequent issuance by the
County;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, as follows:
SECTION 1. SERIES DESIGNATION. The series designation for
the initial series of Bonds is hereby determined to be Series 1995
(and hereinafter the Bonds are referred to as the "Series 1995
Bonds").
SECTION 2. PUBLIC SALE. There are hereby authorized to be
sold pursuant to a public sale not to exceed $15,000,000 Indian
River County, Florida, General Obligation Bonds.
SECTION 3. PROVISIONS FOR REDEMPTION. Series 1995 Bonds or
portions thereof maturing in the years 1996 to 2003, both
inclusive, are not redeemable prior to their stated dates of
maturity. Series 1995 Bonds or portions thereof maturing on July
1, 2004 and thereafter are redeemable prior to their stated dates
of maturity, at the option of the County as a whole or in part on
July 1, 2003, or on any date thereafter, in such manner approved by
the County, at a redemption price (expressed as a percentage of the
principal amount thereof as set forth in the table below), together
with accrued interest on the par amount so redeemed to the
redemption date, if redeemed in the following periods:
Redemption Period
(both dates inclusive)
Redemption Price
(Percentage of Par)
July
1,
2003
to June 30, 2004
102%
July
1,
2004
to June 30, 2005
101
July
1,
2005
and thereafter
100
Notice of such redemption shall, not less than thirty (30) and
not more than sixty (60) days prior to the redemption date, be
filed with the Registrar, and mailed, postage prepaid, to all
Owners of Bonds to be redeemed at their addresses as they appear on
the registration books hereinbefore provided for, but failure to
mail such notice to one or more Owners of Bonds shall not affect
the validity of the proceedings for such redemption with respect to
Owners of Bonds to which notice was duly mailed hereunder. Each
such notice shall set forth (a) the numbers of the Bonds to be
redeemed, by giving the individual certificate number of each Bond
to be redeemed (or stating that all Bonds between two stated certi-
ficate numbers, both inclusive, are to be redeemed, or that all of
the Bonds of one or more maturities have been called for redemp-
tion); (b) the CUSIP numbers of all Bonds being redeemed; (c) in
the case of a partial redemption of Bonds, the principal amount of
each Bond being redeemed; (d) the date of issue of the Bond as
originally issued and the complete official name of the Bonds,
including the series designation; (e) the rate or rates of interest
borne by each Bond being redeemed; (f) the maturity date of each
Bond being redeemed; (g) the place or places where amounts due upon
such redemption will be payable; (h) the publication date, redemp-
tion date and redemption price; and (i) the name, address, tele-
phone number and contact person at the office of the Registrar with
respect to such redemption.
Notice of such redemption also shall be sent by the Registrar
by overnight delivery service or other secure overnight means,
postage prepaid, to any registered owner of $1,000,000 or more in
aggregate principal amount of Bonds to be redeemed, to certain
2
municipal registered Securities Depositories (described below)
which are known to the Registrar, on the second business day prior
to the date the notice of redemption is mailed to the Bondholder,
to be holding Bonds, and at the same time notice is mailed to the
registered owners, to at least two (2) of the national Information
Services (described below) that disseminate securities redemption
notices, when possible, not later than the mailing of notices
required by the preceding paragraph.
Securities Depositories include: The Depository Trust Company,
711 Stewart Avenue, Garden City, New York 11530, Fax -(516) 227-4039
or 4190; Midwest Securities Trust Company, Capital Structures -Call
Notification, 440 South LaSalle Street, Chicago, Illinois 60605,
Fax -(312) 663-2343; Philadelphia Depository Trust Company, Reor-
ganization Division, 1900 Market Street, Philadelphia, Pennsylvania
19103, Attention: Bond Department, Fax -(215) 496-5058; or, in
accordance with the then current guidelines of the Securities and
Exchange Commission, such other addresses and/or such other securi-
ties depositories or any such other depositories as the Issuer may
designate in writing to the Registrar.
Information Services include: ;inancial information, Inc.
"Daily Called Bond Service," 30 Montgomery Street, 10th Floor,
Jersey City, New Jersey 07302, Attention: Editor; Kenny Information
Services, "Called Bond Service," 65 Broadway, 16th Floor, New York,
New York 10004; Moody Is Investors Service "Municipal and Govern-
ment," 99 Church Street, 8th Floor, New York, New York 10007,
Attention: Municipal News Reports; and Standard and Poor's Ratings
Group "Called Bond Record," 25 Broadway, Nein York, New York 10004;
or, in accordance with then current guidelines of the Securities
and Exchange Commission, such other addresses and/or such other
services providing information with respect to called bonds, or any
other such services as the Issuer may designate in writing to the
Registrar.
Upon surrender of any Bond for redemption in part only, the
Registrar shall authenticate and deliver to the Owner thereof, the
cost of which shall be paid by the County, a new Bond of an autho-
rized denomination equal to the unredeemed portion of the Bond
surrendered.
SECTION 4. SALE OF SERIES 1995 BONDS. The Director of
Management and Budget is hereby directed to publish the Summary
Notice of Sale of the Series 1995 Bonds in The Bond Buyer; such
publication to be on such date as shall be deemed by the Director
of Management and Budget to be in the best interest of the Issuer
and such publications to be not less than ten (10) days prior to
the date of sale; and to publish such Notice in such other
newspapers on such dates as may be deemed appropriate by the
Director of Management and Budget.
3
Proposals for purchase of the Series 1995 Bonds will be
received at the County office of the Director of Management and
Budget, 1840 25th Street, Vero Beach, Florida, 32960, from the time
that the Notice of Bond Sale is published until such date and time
selected by the Director of Management and Budget prior to the
pub-'Ucation of the Summary Notice of Sale.
SECTION 7. APPROVAL OF FORMS. The Notice of Bond Sale and
Summary Notice of male v€ AA Series 1995 Bonds and the official
Bid Form to be submitted for purchase of the Series 1995 Bonds
shall be in substantially the forms annexed hereto, as Exhibits A,
B and C, respectively, together with such changes as shall be
deemed necessary or desirable by the Director of Management and
Budget, incorporated herein by reference.
The Series 1995 Bonds shall be dated, shall mature and be
subject to such further conditions as set forth in the Notice of
Bond Sale.
SECTION 8. BOOK ENTRY ONLY BONDS. It is in the best interest
of the County and the residents and inhabitants thereof that the
Bonds be issued utilizing a pure book -entry system of registration.
In furtherance thereof, the County authorizes the execution and
delivery of a Letter of Representation with the Depository Trust
Company in substantially the form attached hereto as Exhibit D and
the Chairman is hereby authorized to execute and deliver the Letter
of Representation with such changes, insertions and omissions as
shall be approved by the officer of the County executing the same_
in addition, in order to set forth the terms of such system of
registration, the County hereby ratifies and approves the terms and
conditions set forth on Exhibit E attached hereto. Such terms and
provisions shall be deemed to be incorporated herein and in the
Resolution as if set forth at length. For so long as the Bonds
remain in such book entry only system of registration, in the event
of a conflict between the provisions of the Resolution and the
provisions of Exhibit E attached hereto the terms and provisions of
Exhibit E shall prevail.
SECTION 9. PAYMENT OF INTEREST. Payment of the interest on
the Series 1995 Bonds shall be made by the Paying Agent on each
interest payment date to the person appearing on the registration
books of the Registrar as of the date fifteen (15) days prior to
each interest payment date, as the registered Owner thereof, by
check or draft mailed to such registered Owner at his address as it
appears on such registration books; provided, however, that for any
Owner of $1,000,000 or more in principal amount of Series 1995
Bonds, interest payments will, at the written request and at the
expense of such Owner, be made by wire transfer or other medium
acceptable to the Issuer and to the Owner.
SECTION 10. PRELIMINARY OFFICIAL STATEMENT. The Chairman of
the Board of County Commissioners and the Director of Management
2
and Budget are authorized and directed to cause a Preliminary
Official Statement to be prepared in substantially the form
attached hereto as Exhibit F, with such changes, insertions and
omissions as shall be approved by the Chairman and Director of
Management and Budget containing a copy of the attached Notice of
Bond Sale and Official Bid Form and to furnish a copy of such
Preliminary Official Statement to interested bidders. The County
Administrator and the County Attorney are authorized to deem final
the Preliminary Official Statement prepared pursuant to this
Section for purposes of Rule 15c2-12 (the "Rule") of the Securities
and Exchange Commission. Upon the award of the Series 1995 Bonds
to the successful bidder, the County shall also make available a
reasonable number of copies of the official Statement to such
bidder, who may mail such Official Statements to prospective
purchasers at the bidder's expense.
SECTION 11. CONTINUING DISCLOSURE UNDERTAKING. A. The
County hereby agrees, in accordance with the provisions of Rule
15c2-12 (the "Rule"), promulgated by the Securities and Exchange
Commission (the "Commission") pursuant to the Securities Exchange
Act of 1934, to provide or cause to be provided, to each nationally
recognized municipal securities information repository ("NRMSIR")
designated by the Commission in accordance with the Rule, and to
the appropriate state information depository ("SID"), if any,
designated by the State of Florida, the following annual financial
information and operating data (the "Annual Information"),
commencing with the fiscal year ending September 30, 1996:
1. The assessed value of taxable property within the County,
County tax levies and collections, including property tax rates for
the County and all overlapping taxing entities, and computation of
direct and overlapping debt; all generally consistent with such
information as it is included in the final Official Statement for
the Bonds.
2. The audited general purpose financial statements of the
County utilizing generally accepted accounting principles
applicable to governmental units, as described in the Official
Statement, except as may be modified from time to time and
described in such financial statements.
The information in paragraph 1 above will be available on or
before June 1 of each year for the preceding fiscal year and will
be made available, in addition to the NRMSIR's and the SID, to each
holder of Bonds who requests such information. Audited financial
statements of the County are expected to be available separately
from the information in paragraph 1 above, and will be provided as
soon as practical after acceptance of such statements from the
auditors by the County. The audited financial statements are
generally available within 6 months of the end of the fiscal year.
B. The County agrees to provide or cause to be provided, in
a timely manner, to each NRMSIR or to the Municipal Securities
Rulemaking Board ("MSRB"), and the SID, notice of the occurrence of
any of the following events with respect to the Bonds, if material:
(1) principal and interest payment delinquencies;
(2) non-payment related defaults;
(3) unscheduled draws on debt service reserves
reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting
financial difficulties;
(5) substitution of credit or liquidity providers, or
their failure to perform;
(6) adverse tax opinions or events affecting the tax-
exempt status of the security;
(7) modifications to rights of security holders;
(8) bond calls;
(9) defeasance;
(10) release, substitution, or sale of property securing
repayment of the securities; and
(11) rating changes
C. The County agrees to provide or cause to be provided, in
a timely manner, to ( i ) each NRMSIR or to the MSRB and (ii) the
SID, notice of its failure to provide the Annual Information with
respect to itself on or prior to the date set forth in paragraph A
above.
D. The obligations of the County hereunder shall remain in
effect only so long as the Bonds are outstanding. The County
reserves the right to terminate its obligation to provide the
Annual Information and notices of material events, as set forth
above, if and when the County no longer remains an obligated person
with respect to the Bonds, within the meaning of the Rule.
E. The County agrees that its undertaking pursuant to the
Rule set forth in this Section is intended to be for the benefit of
the owners of the Bonds, and shall be enforceable by such owners;
provided, that solely in the event the County fails to timely file
the Annual Information in accordance with paragraph A above, any
owner of the Bonds shall have the right to enforce, on behalf of
all owners of the Bonds, the County's undertaking to make such
C:
filing on a timely basis; provided, the right of any such owner to
enforce the provisions of this undertaking shall be limited to a
right to obtain specific enforcement of the County's obligations
hereunder, and any failure by the County to comply with the
provisions of this undertaking shall not be default or an event of
default with respect to the Bonds.
F. Notwithstanding the foregoing, the NRMSIR's to which
information shall be provided shall include those NRMSIR's which
have been approved by the SEC prior to the date of issuance of the
Bonds. In the event the SEC approves any additional NRMSIR's after
the date of issuance of the Bonds, the County shall, if the County
is notified of such additional NRMSIR's, provide such information
to the additional NRMSIR's. Failure to provide information to any
new NRMSIR whose status as a NRMSIR is unknown to the County shall
not constitute a breach of the foregoing covenant.
G. Additionally, the requirements of paragraph A above do
not necessitate the preparation of any separate annual report
addressing only the Bonds. These requirements may be met by the
filing of a combined bond report or the County's Comprehensive
Annual Financial Report; provided, such report includes all of the
required information and is available by June 1. Additionally, the
County may incorporate any information provided in any prior filing
with each NRMSIR or included in any final official statement of the
County; provide, such final official statement is filed with the
MSRB.
H. The County reserves the right to modify from time to time
the specific types of information provided or the format of the
presentation of such information, to the extent necessary to
appropriate in the judgment of the County; provided, the County
agrees that any such modification will be done in a manner
consistent with the Rule.
SECTION 12. REGISTRAR AND PAYING AGENT. First Union National
Bank of Florida, Jacksonville, Florida, is hereby appointed as
Registrar and Paying Agent for the Series 1995 Bonds.
SECTION 13. MUNICIPAL BOND INSURANCE. The Director of
Management and Budget is hereby authorized to select a bond insurer
to provide insurance to insure the scheduled payment of principal
and interest on the Series 1995 Bonds on behalf of the Issuer or,
in the alternative, allow each bidder to select whether the Series
1995 Bonds are to be insured by such bond insurer.
SECTION 14. AWARD OF
Budget is hereby authorized
Bonds, and the Issuer will
determination of the best
terms of the Notice of Bond
all bids. Such award shall
BID. The Director of Management and
to accept the bids for the Series 1995
award said Series 1995 Bonds on its
bid submitted in accordance with the
Sale provided for herein or may reject
be final.
7
SECTION 15. INCONSISTENT PROVISIONS. All prior resolutions
and motions of the Issuer inconsistent with the provisions of this
resolution are hereby modified, supplemented and amended to conform
with the provisions herein contained and except as otherwise
modified, supplemented and amended hereby shall remain in full
force and effect.
SECTION 16. EFFECTIVE DATE. This resolution shall take
effect immediately upon its adoption.
Passed and adopted by the Board of County Commissioners of
Indian River County, Florida, this 20 day of. June
1995.
PASSED AND ADOPTED the 20 day of June , 1995.
(SEAL)
(SEAL)
ATTEST:
Zlerk
ju
8
BOARD OF COUNTY COMMISSIONERS
INDIAN RIVER COUNTY, FLORIDA
airma-
Indian River Ca
Approved
Date
Admin.
6/ rh
Legal~
L _
Budget
Dept.
Risk Mgr.
EXHIBIT A
FORM OF OFFICIAL NOTICE OF BOND SALE
$15,M,M*
INDIAN RIVER COUNTY, FLORIDA
GENERAL OBLIGATION BONDS, SERIES 1995
Sealed proposals will be received by Indian River County, Florida (the "County") at the Office of the
Director of Management and Budget, 1840 25th Street, Vero Beach, Florida 32960, by 11:00 a.m. (Eastern
Daylight Time) on July 11, 1995 for the purchase of the Indian River County, Florida, General Obligation Bonds,
Series 1995 (the "Series 1995 Bonds"). Each proposal, together with the good faith deposit described below,
should be enclosed in a sealed envelope marked "Proposal for $16,000,000• Indian River County, Florida,
General Obligation Bonds, Series 1995; Do Not Open Until 11:00 a.m. (Eastern Daylight Time), July 11,1995",
or such similar legend which appropriately identifies the contents thereof.
Form of Series 1995 Bonds - Full Book Entry
w
The Series 1995 Bonds shall be issued in book -entry form, as fully registered Bonds without coupons,
shall be dated July 1, 1995 and shall bear interest as set forth herein, payable semiannually on January 1 and July
1 of each year, commencing on January 1, 1996.
The Series 1995 Bonds will be issued by means of a book -entry system with no physical distribution of
bond certificates made to the public. One bond certificate for each maturity will be registered in the name of
Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC") and immobilized
in its custody. The Successful Bidder (as defined below), as a condition to delivery of the Series 1995 Bonds,
shall be required to (i) deposit the certificates with DTC, registered in the name of Cede & Co., its nominee
and (ii) take all actions required by DTC of a managing underwriter in this regard. The book -entry system will
evidence ownership interests in the Series 1995 Bonds in the principal amount of $5,000 and any integral multiple
thereof, with transfers of ownership interests of€ie ted on the records of DTC and its participants pursuant to
rules and procedures established by DTC. Transfer of principal and interest payments to participants of DTC
will be the responsibility of DTC, and transfer of principal and interest payments to beneficial owners of the
Series 1995 Bonds by participants of DTC will be the responsibility of such participants and other nominees of
beneficial owners. The County will not be responsible or liable for such transfers of payments or for maintaining,
supervising, or reviewing the records maintained by DTC, its participants or persons acting through such
participants.
DTC may discontinue providing its services with respect to the Series 1995 Bonds at any time by giving
notice to the County and discharging its responsibilities with respect thereto under applicable law, or the County
may terminate its participation in the system of book -entry transfers through DTC at any time. Upon either such
event, if the County fails to identify another qualified securities depository to replace DTC, the County will
deliver replacement bonds in the form of fully registered certificates in denominations of $5,000 and any integral
multiple thereof pursuant to the resolution under which the Bonds are issued. However, definitive replacement
bonds shall be issued only upon surrender to the Bond Registrar of the bond of each maturity by DTC,
accompanied by registration instructions for definitive replacement bonds for such maturity from DTC. Neither
the County nor the Bond Registrar shall be liable for any delay in delivery of such instructions and conclusively
may rely on and shall be protected in relying on such instructions of DTC.
*Preliminary, subject to change.
The Series 1995 Bonds will mature on July i of the following years in the following principal amounts:
Principal
Amwae
Principal
Amount *
1996
$720,000
2004
11015,000
1997
745,000
2005
1,070,000
1998
780,000
2006
1,120,000
1999
810,000
2007
11180,000
2000
845,000
2008
1,245,000
2001
885,000
2009
1,310,000
2002
925,000
2010
1.380;00(!
2003
970,000
Series 1995 Bonds or portions thereof maturing in the years 1996 to 2003, both inclusive, are not
redeemable prior to their stated dates of maturity. Series 1995 Bonds or portions thereof maturing on July 1,
2004 and thereafter are redeemable prior to their states dates of maturity, at the option of the County as a whole
or in part on July 1, 2003, or on any date thereafter, in such manner approved by the County, at a redemption
price (expressed as a percentage of the principal amount thereof as set forth in the table below), together with
accrued interest on the par amount so redeemed to the redemption date, if redeemed in the following periods:
Redemption Period
(both dates inclusive)
July 1, 2003 to June 30, 2004
July 1, 2004 to June 30, 2005
July 1, 2005 and thereafter
Redemption Price
(Per_ cent= of Pari
102%
101
100
After final computation of the bids, to achieve desired debt service levels as described in "Security"
below, the County reserves the right either to increase or decrease any Principal Amount of the Series 1995
Bonds (or any Amortization Installment in the case of a Term Bond) shown on the schedule of Principal
Amounts set forth above (the "Maturity Schedule"), by an amount not to exceed five percent (5%) of the stated
amount of each such Principal Amount on the Maturity Schedule and correspondingly adjust the issue size, all
calculations to be rounded to the nearest $5,000.
In the event of any such adjustment, no rebidding or recalculation of the bid submitted will be required
or permitted If necessary, the total purchase price of the Series 1995 Bonds will be increased or decreased in
direct proportion to the ratio that the adjustment bears to the aggregate principal amount of the Series 1995
Bonds speed herein; and the Series 1995 Bonds of each maturity, as adjusted, will bear interest at the same
rate and must have the same initial reoffering yields as speed in the bid of the Successful Bidder. However,
the award will be made to the bidder whose bid produces the lowest true interest cost, calculated as speed
below, solely on the basis of the Series 1995 Bonds offered pursuant to the Bid Maturity Schedule, without taking
into account any adjustment in the amount of Series 1995 Bonds set forth in the Bid Maturity Schedule.
Ded®adon of Term Bon •
Bidders may specify that the annual Principal Amounts of the Series 1995 Bonds coming due in any two
or more consecutive years may be combined to form one or more maturities of Term Bonds scheduled to mature
in the last of such years with the preceding annual Principal Amounts for such years constituting mandatory
Amortization Installments to be selected by lot and redeemed at a price of par plus accrued interest, without
Premium, in accordance with the Resolution.
Basis of Award
Proposals must be unconditional and only for all the Series 1995 Bonds. The purchase price bid for the
Series 1995 Bonds may include a discount (including underwriters' discount and original issue discount net of
original issue premium, but excluding any municipal bond insurance premium) not to exceed two percent (2S)
of the principal amount of the Series 1995 Bonds and shall specify how much of the discount is original issue
discount. No more than one (1) Proposal from any bidder will be considered. The County reserves the right
to determine the Successful Bidder, to reject any or all bids and to waive any irregularity or informality in any
bid.
The Series 1995 Bonds will be awarded to the bidder (herein referred to as the "Successful Bidder")
offering such interest rate or rates and purchase price which will produce the lowest true interest cost to the
County over the life of the Series 1995 Bonds. True interest cost for the Series 1995 Bonds (expressed as an
annual interest rate) will be that annual interest rate being twice that factor of discount rate, compounded
semiannually, which when applied against each semiannual debt service payment (interest, or principal and
interest, as due) for the Series 1995 Bonds will equate the sum of such discounted semiannual payments to the
bid price (inclusive of accrued interest). Such semiannual debt service payments begin on January 1, 1996. The
true interest cost shall be calculated from the closing date of the Series 1995 Bonds (July 25, 1995) and shall be
based upon the principal amounts of each serial maturity set forth in this Notice of Bond Sale and the bid price
set forth in each Proposal for the Series 1995 Bonds submitted in accordance with the Notice of Bond Sale. If
the bidder elects to have the Series 1995 Bonds insured, the bid price will be reduced by the cost of the bond
insurance premium solely for the purpose of calculating the true interest cost. The County will pay the bond
insurance premium, if the successful bidder has elected to have the Series 1995 Bonds insured. In case of a tie,
the County may select the Successful Bidder by lot. It is requested that each Proposal for the Series 1995 Bonds
be accompanied by a computation of such true interest cost to the County under the term of the Proposal for
Bonds, but such computation is not to be considered as part of the Proposal for Bonds.
Interest Rates Permitted
The Series 1995 Bonds shall bear interest expressed in multiples of one-eighth (1/8) or one -twentieth
(1/20) of one percent. No interest rate speed for any maturity may be lower than any interest rate specified
for an earlier maturity. There shall not be a difference greater than two hundred fifty basis points (250 b.p.)
between the lowest interest rate and highest interest rate. Should an interest rate be specified which results in
annual interest payments not being equally divisible between the semiannual payments in cents, the first
semiannual payment will be reduced to the next lower cent and the second semiannual payment will be raised
to the next higher cent.
It shall not be necessary that all Series 1995 Bonds bear the same rate of interest, provided that all
Series 1995 Bonds maturing on the same date shall bear the same rate of interest. A rate of interest based upon
the use of split or supplemental interest payments or a zero rate of interest will not be considered.
3
PiMno A,_„nnt d RWstmr
The Paying Agent and Registrar for the Series 1995 Bonds is First Union National Bank of Florida,
Jacksonville, Florida.
Boole Entry System
Brokers and dealers with respect to the Series 1995 Bonds will be expected to send to their purchasers
a transaction statement regarding their purchase of beneficial interests in the Series 1995 Bonds and setting forth
certain terms of those Series 1995 Bonds. The ownership of the Series 1995 Bonds and beneficial interest in the
Series 1995 Bonds is expected to be shown on, and the transfer of that ownership is expected to be effected
through, records maintained by DTC, its participants and certain persons acting through the participants. The
County is not responsible or liable for sending transaction statements or for maintaining, supervising or reviewing
such records. Principal and interest payments and premiums, if any, on the Series 1995 Bonds are to be made
to DTC or its nominee as registered owner of the Series 1995 Bonds in any coin or currency of the United States
which at the time of the payments is legal tender for this payment of public and private debt. Such Payments
are to be made on the applicable interest or principal date. Transfer of principal and interest payments to the
participants is the responsibility of DTC. Transfer of principal and interest payments to the beneficial owners
is the responsibility of the participants and other nominees of beneficial owners. With regard to redemption,
DTC is responsible for selecting the principal amount of the Series 1995 Bonds credited to each beneficial owner
to be redeemed and for notifying each such beneficial owner. By purchase and acceptance of a bond, the owner
agrees that the County shall have no responsibility or liability for the action or inaction by DTC or any to its
participants or nominees in connection with the Series 1995 Bonds. Furthermore, the County shall not be
responsible or liable for payment by DTC to its participants or by DTC participants to beneficial owners or for
maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through
such participants.
The County cannot and does not give any assurances that DTC, DTC participants or others will
distribute payments of principal of or interest on, or any premium on the Series 1995 Bonds paid to DTC or its
nominee, as the registered owner, or any redemption or other notices, to the beneficial owners or that they will
do so on a timely basis. The County is not responsible or liable for the failure of DTC, DTC participants or
others to make any payment or give any notice to a beneficial owner in respect of the Series 1995 Bonds or any
error or delay relating thereto.
In the event that (a) DTC determines not to continue to act as securities depository of the Series 1995
Bonds, or (b) the County determines (although the County undertakes no obligation to make such a determina-
tion) that continuation of the book-entry system of evidence and transfer of ownership of the Series 1995 Bonds
would adversely affect the interest of the beneficial owners of the Series 1995 Bonds, the County will discontinue
the book-entry system with DTC. If the County fails to identify another qualified securities depository to replace
DTC, the County will deliver replacement bonds in the form of fully registered certificates in denominations of
$5,000 and any integral multiple thereof pursuant to the Resolution. However, definitive replacement bonds shall
be issued only upon surrender to the Bond Registrar of the Bond of each maturity by DTC, accompanied by
registration instructions for definitive replacement bonds for such maturity from DTC. Neither the County nor
the Bond Registrar shall be liable for any delay in delivery of such instructions and conclusively may rely on and
shall be protected in relying on such instructions of DTC.
Securl
Principal of and interest on the Series 1995 Bonds to be issued pursuant to Resolution No. 95-63, as
supplemented, and all required sinking fund, and other payments shall be payable solely from the County's ad
valorem taxes without limit on all taxable property in the County as provided herein; provided, however, that the
Bonds shall be structured by the County in such a manner that at the time of issuance the millage rate required
to make the maximum annual payment of the principal of and interest on the Bonds shall not exceed 1/2 mil
of the then assessed value of Of land.; situated in the County subject to ad valorem taxation. The Series 1995
4
Bonds are general obligations of the County secured by the full faith and credit and taxing power of the County.
In each year while any of the Series 1995 Bonds are outstanding and unpaid, there shall be levied and collected
an ad valorem tax on all the taxable property within the County sufficient to pay the interest on the Bonds as
it becomes due, and to provide for the payment of the principal on the Bonds at their maturity. The County is
irrevocably and unconditionally obligated to levy and collect ad valorem taxes, without limitation as to rate or
amount, on all the taxable property within the County, sufficient in amount to pay all principal of, redemption
Premium, if any, and interest on the Bonds as the same shall become due and payable.
Pursuant to the Resolution, the Series 1995 Bonds are being issued to finance the acquisition of
environmentally aigoificant land to protect water quality, open spaces, and wildlife habitat in Indian River County
(the "Projects% under the authority of and in full compliance with the Constitution and Statutes of the State of
Florida, including particularly Chapter 125, Florida Statutes, Resolution No. 92-146 of Indian River County,
Florida, a vote of the electors of Indian River County, Florida, in accordance with Chapter 100, Florida Statutes,
and a Resolution duly adopted by the County Commissioners of Indian River County, Florida (hereinafter
referred to as the "Commission"), on the 16th day of May, 1995, and to pay the cost of issuance of the Series
1995 Bonds.
Issuance of Series 1995 Bonds
The Series 1995 Bonds will be issued and sold by Indian River County, Florida, a political subdivision
Of the State of Florida. The Series 1995 Bonds are being issued pursuant to Resolution No. 95-63, as
supplemented, adopted May 16,1995 (the "Resolution") by the Board of County Commissioners of Indian River
County, Florida, and pursuant to the provisions of Chapter 125, Florida Statutes, and other applicable provisions
Of law.
Municloal Bond Insuranee Polkv
A commitment to issue a municipal bond insurance policy guaranteeing payment of principal and interest
on the Series 1995 Bonds has been obtained from
Bidders, at their option, may elect to utilize this bond insurance commitment in their bid. Alternatively, bidders
may rely upon published ratings on the Series 1995 Bonds received from Moodys Investors Service and Standard
& Pooes Ratings Group of_ and , respectively. if bond insurance is used, the price bid for purchase of the
Series 1995 Bonds, asset forth on the Official Bid Form, will be reduced by the amount of the bond insurance
Policy premium, solely for the purpose of calculating the true interest cost rate of the bid. The County will pay
the insurance premium if the Successful Bidder has elected to have the Series 1995 Bonds insured. Information
regarding the bond insurance commitment, including the amount of the premium, may be obtained from Arthur
H. Diamond of Fishkind & Associates, Inc., Financial Advisor to the County, Telephone: (407) 382-3256.
Emmal
Proposals are desired on forms which will be furnished by the County, and envelopes, containing
Proposals should have endorsed thereon "Proposal for $15,OOopo• Indian River County, Florida, General
Obligation Bonds, Series 1995; Do Not Open Until 11:00 a.m. (Eastern Daylight Time), July 11,1995", or words
of equivalent import, and should be addressed to the County at the above address.
Each proposal must be accompanied by the sum of $300,000 in the form of either (i) a Cashier's or
Certified Check drawn upon an incorporated bank or trust company, payable to Indian River County, Florida,
as evidence of good faith, or (ii), a Financial Surety Bond from any insurance company licensed to issue such
a surety bond in the State of Florida and approved by the County (as of the date hereof only Capital Guaranty
•Preliminary, subject to change.
5
Insurance Company has been so approved) and submitted to the County prior to the opening of the bids,
identifying each bidder whose deposit is guaranteed by the Financial Surety Bond, which shall evidence good faith
on the part of the bidder. If a check is delivered, the check of the successful bidder may be cashed by the
County and the proceeds will be held as security for performance of the bid. If a Financial Surety Bond is
provided by the successful bidder the good faith deposit shall be delivered by wire transfer to the County by 11:00
a.m., Eastern Daylight Time. the next business day. If the Successful Bidder shall fail to comply promptly
with the terms of its Proposal, ' e amount of such check will be forfeited to said payee as liquidated damages.
The checks of unsuccessful bidders will be returned to such bidders by registered mail at the addresses stated
in their Proposals, or delivered to a representative of such bidder immediately after the award of the Series 1995
Bonds to the Successful Bidder. The proceeds of the good faith check of the Successful Bidder will be applied
to the payment of the purchase price of the Series 1995 Bonds. Prior to the delivery of the Series 1995 Bonds,
the County may cash and invest the proceeds from the good faith check. No interest will be paid to any bidder
upon any good faith check.
Pursuant to Section 218.385(2) and (3) of the Florida Statutes, as amended, a completed truth -in -bonding
statement will be required from the Successful Bidder as part of the Proposal, and the form thereof is made a
part of such Proposal.
Continuing Discloso—
The County will agree in the Resolution, as supplemented, to provide or cause to be provided, in
accordance with the requirements of Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange
Commission, (a) on or prior to June 1 of each year, certain annual financial information and operating data,
including audited financial statements for the preceding fiscal year as soon as such report is accepted by the
Commission, generally consistent with the information contained or cross-referenced in the Official Statement;
(b) timely notice of the occurrence of certain material events with respect to the Series 1995 Bonds; and (c)
timely notice of a failure by the County to provide the required annual financial information on or before the
date specified in (a) above.
The Successful Bidder's obligation to purchase the Series 1995 Bonds shall be conditioned upon its
receiving, at or prior to the delivery of the Series 1995 Bonds, in form and substance reasonably satisfactory to
the Successful Bidder, evidence that the County has made the continuing disclosure undertaking set forth above
in a written agreement or contract for the benefit of the holders of the Series 1W5 Bonds.
Delivery and Paymen
It is anticipated that the Series lW5 Bonds in fully registered, book -entry form will be available for
delivery on July 25, 1995 in New York, New York at The Depository Trust Company, against the payment of
the purchase price therefor including accrued interest calculated on a 300 -day year basis, less the amount of the
good faith check, in immediately available Federal Reserve Funds without cost to the County.
Closing Documents
The County will furnish to the Successful Bidder upon delivery of the Series 1995 Bonds the following
closing documents in a form satisfactory to Bond Counsel: (1) signature and no -litigation certificate; (2) federal
tax certificate; (3) certificate regarding information in the Official Statement; (4) certificate regarding the
County's obligation to provide continuing disclosure pursuant to the Rule; and (5) sellers receipt as to payment.
A copy of the transcript of the proceedings authorizing the Series 1995 Bonds will be delivered to the Successful
Bidder of the Series 1995 Bonds upon request. Copies of the form of such closing papers and certificates may
be obtained from the County.
6
InforinaUgg Statement
Section 218.38(1)(b)1, Florida Statutes, as amended, requires that the County file, within 120 days after
delivery of the Series 1995 Bonds, an information statement with the Division of Bond Finance of the State of
Florida (the "Division") containing the following information: (a) the name and address of the managing
underwriter, if any, connected with the Series 1995 Bonds; (b) the name and address of any attorney or financial
consultant who advised the County with respect to the Series loXIS Bonds; and (c) any fee, bonus, or gratuity
paid, in connection with the bond issue, by an underwriter or financial consultant to any person not regularly
employed or engaged by such underwriter or consultant and (d) any other fee paid by the County with respect
to the Series 1995 Bonds, including any fee paid to attorneys or financial consultants. The Successful Bidder will
be required to deliver to the County at or prior to the time of delivery of the Series 1995 Bonds, a statement
signed by an authorized officer containing the; same information mentioned in (a) and (c) above. The Successful
Bidder shall also be required, at or prior to the delivery of the Series 1995 Bonds, to furnish the County with
such information concerning the initial prices at which a substantial amount of the Series 1995 Bonds of each
maturity were sold to the public as the County shall reasonably request.
LMI 0010lon
The Successful Bidder will be furnished, without cost, the approving opinion of Bryant, Miller and Olive,
PA., Tallahassee, Florida, to the effect that based on existing law, and assuming compliance by the County with
certain covenants and requirements of the Internal Revenue Code of 1986, as amended (the "Code"), regarding
use, expenditures, investment of proceeds and the timely payment of certain investment earnings to the United
States Treasury, the interest on the Series 1995 Bonds is not includable in the gross income of individuals,
however, interest on the Series 1995 Bonds will be included in the calculation of the alternative minimum tax
of corporations. The Code contains other provisions that could result in tax consequences, upon which Bond
Counsel renders no opinion, as a result of ownership of the Series 1995 Bonds or the inclusion in certain
computations (including, without limitation, those related to the corporate alternative minimum tax and
environmental tax) of interest that is excluded from gross income.
Official Statement
The Preliminary Official Statement, copies of which may be obtained as described below, is in a form
"deemed final" by the County for purposes of SEC Rule 15c2 -12(b)(1) (except for certain permitted omissions
as described in such rule) but is subject to revision, amendment and completion in a linal Official Statement.
After the sale of the Series 1995 Bonds, the County will prepare a final Official Statement in substantially the
same form as the Preliminary Official Statement. Copies of the final Official Statement will be provided, at the
County's expense, on a timely basis in such quantities as may be necessary for the Successful Bidder's regulatory
compliance.
mbers and DTC Eliei
It is anticipated that CUSIP identification numbers will be printed on the Series 1995 Bonds, but neither
the failure to print such number on any Series 1995 Bonds nor any error with respect thereto shall constitute
cause for failure or refusal by the Successful Bidder to accept delivery of and pay for the Series 1995 Bonds in
accordance with its agreement to purchase the Series 1995 Bonds. All expenses in relation to the printing of
CUSIP numbers on the Series 1995 Bonds shall be paid for by the County; provided, however, that the CUSIP
Service Bureau charge for the assignment of said number shall be the responsibility of and shall be paid for by
the Successful Bidder.
The successful bidder shall be required to deposit the Series 1995 Bonds with DTC. It is anticipated
that the Series 1995 Bonds will be eligible for custodial deposit with DTC; however, it will be the responsibility
of the successful bidder to obtain such eligibility.
7
Copies of the Preliminary Official Statement, this Official Notice of Bond Sale and the Official Bid Form
and further information which may be desired, may be obtained from the County's Financial Advisor, Fishkind
& Associates, Inc., 12424 Research Parkway, Suite 275, Orlando, Florida 32826, telephone (407) 382-3256.
Amendments hereto and notices, if any, pertaining to this offering shall be made by the Munifacts News
Service.
INDIAN RIVER COUNTY, FLORIDA
Chairman
8
EXHIBIT B
FORM OF SUMMARY NOTICE OF SALE
SUMMARY NOTICE OF SALE
$150000,000•
INDIAN RIVER COUNTY, FLORIDA
General Obligation Bonds
Series 1995
Sealed bids will be received by the Director of Management and Budget of the Board
of County Commissioners of Indian River County, Florida, at the office of the Finance
Director, 1840 25th Street, Vero Beach, Florida 32960, subject to the provisions of the
Official Notice of Bond Sale.
Sale Date:
July 11, 1995
Time:
11:00 a.m., E.D.T.
Bonds Dated:
July 1, 1995
Maturities:
Payable July 1 in the years and amounts as follows:
Due
Principal
Due
Principal
(,Jules
Amount* (JalX
11
Amount*—
1996
720,000
2004
1,015,000
1997
7459,000
2005
1,070,000
1998
780,000
2006
11,120,000
1999
810,000
2007
19180,000
2000
845,000
2008
1,245,000
2001
885,000
2009
1,310,000
2002
925,000
2010
1,380,000
2003
970,000
Interest
Payment Dates:
Payable January 1 and
July 1, commencing January 1, 1996.
Legal Opinion:
Bryant, Miller and Olive, P.A.,
Tallahassee, Florida
For copies of the Official Notice of Bond Sale, the Preliminary Official Statement of
Indian River County, Florida, and official Proposal Form, please contact the County's
Financial Advisor, Arthur H. Diamond, Fishkind & Associates, Inc., 12424 Research
Parkway, Suite 275, Orlando, Florida 32826, Telephone: (407) 382-3256.
'Preliminary, subject to change.
EXHIBIT C
FORM OF BID PROPOSAL
PROPOSAL FOR
$I5,00aAW INDIAN RIVER COUNTY, FLORIDA
GENERAL OBLIGATION BONDS, SE "F " 1995
Director of Management and Budget
1840 25th Street
Vero Beach, Florida 32960
Ladies and Gentlemen:
For the Indian River County, Florida, General Obligation Bonds, Series 1995 (the "Series 1995 Bonds'),
dated July 1, 1995 and maturing on July 1, 1996 through July 1, 2010, in the principal amount of $15,000,000•,
described in the Official Notice of Bond Sale, which is hereby made a part of this Proposal, we will pay you in
immediately available federal reserve funds
Dollars (Z ). plus accrued
interest to the date of delivery of the Series 1995 Bonds. This bid price may include an underwriter's discount
and an original issue discount, the total of which do not exceed [2°b] of the principal amount of the Series 1995
Bonds.
We do or do not wish to have the Series 1995 Bonds insured. We understand that the Series
1995 Bonds will be insured by if the election to purchase
insurance is made, and the bond insurance premium will be paid by the County.
Said Series 1995 Bonds shall bear interest at the rates and shall be reoffered at prices or yields speed
below.
Principal Interest Price Principal Interest Price
DdA[!1[b Amount Rate or Yield MS1gtILY Amount* Rate or Yield
1996
720,000
2004
1,015,000
1997
745,000
2005
1,070,000
1998
780,000
2006
1,120,000
1999
810,000
2007
1,180,000 _
2000
845,000
2008
1,245,000
2001
885,000
2009
1,310,000
2002
925,000
2010
1,380,000
2003
970,000
Term Bonds Oration. The interest rate or reoffering price or yield for any Term Bonds shall be
indicated in the table above only in the year of final maturity. The annual Principal Amounts so indicated shall
be applied for the mandatory retirement of one or more Term Bonds maturing in the years and amounts and
bearing interest as follows:
$ Term Bonds maturing on 1, at % per annum to yield % per annum.
$ Tense Bonds maturing on 1, at % per annum to yield % per annum.
[If additional space is needed to specify additional Term Bond maturities, please attach a separate sheet to this
proposal, setting forth such additional Term Bond maturities in the form set forth above.]
We will accept delivery of said Series 1995 Bonds through The Depository Trust Company, with the
closing occurring at the office of the County Attorney of Indian River County, 1840 25th Street, Vero Beach,
Florida 3296% an or about July 25, 1995, unless another date or place shall be mutually agreed upon, it being
understood that the County shall furnish to us, free of charge at the time of delivery of said Series 1995 Bonds,
the opinion of Bryant, Miller and Olive, PA., Bond Counsel, Tallahassee, Florida, approving the validity thereof.
In accordance with the Oficial Notice of Bond Sale, we enclose herewith either (i) a Cashier's or
Certified Check for $300,000 payable to the order of Indian River County, Florida, to be returned to the
undersigned upon the award of said Series 1995 Bonds provided this Proposal is not accepted, or (u) provided
for a Financial Surety Bond in accordance with the Oficial Notice of Sale. The check is to be cashed and the
amount of the check retained by the County until the delivery of said Series 1995 Bonds and payment therefor,
and is to be applied to the payment of the Series 1995 Bonds or retained as and for liquidated damages in case
of the failure of the undersigned to make payment as agreed
This proposal is not subject to any conditions not expressly stated herein or in the annexed Official
Notice of Bond Sale. Receipt of the Preliminary Oficial Statement relating to these Series 1995 Bonds is hereby
acknowledged. The names of the underwriters or members of the account or joint bidding accounts, if any, who
are associated for the purpose of this Proposal are listed either below or on a separate sheet attached hereto.
Name of Firm
By:
Name -
Title. .
Address
City State Zip
Telephone Number
The following is our computation made in accordance with the Oficial Notice of Bond Sale of the true
interest cost to Indian River Couety, Florida, under terms of our Proposal for Series 1995 Bonds, which is for
informational purposes only and is subject to verification prior to award:
Par Amount
Less Original Issue Discount
Less Underwriters' Discount
Plus Original Issue Premium
(the Original Issue Discount and Underwriters' Discount net of
Original Issue rremium should not exceed [20/6] of the principal
amount of the Series 1995 Bonds)
Amount Bid Before Accrued Interest
(This amount should match the pricebid on page 1)
Less Bond Insurance Premium (if applicable)
Bid For Purposes of Calculating True Interest Cost
Accrued Interest
True Interest Cat Rate (To July 25, 1995 and Inclusive of
Insurance Premium costs and accrued interest, if any)
S
Pursuant to Section 218.385(2) and (3) of the Florida Statutes, as amended, the following truth -in -
bonding statement is submitted as part of this proposal:
2
Indian River County, Florida is proposing to issue $15,000,000* original aggregate principal amount
of General Obligation Bonds, Series 1995 for the purpose of (i) financing the acquisition of environmentally
significant land to protect water quality, open spaces, and wildlife habitat in Indian River County and (ii) paying
the costs of issuing the Series 1995 Bonds, all as further described in Resolution No. 95-63 (the "Resolution").
The final maturity date of the Series 1995 Bonds is August 1, 2010, and the Series 1995 Bonds are expected to
be repaid over a period of fifteen (15) years. At a forecasted average interest rate of % per annum, total
interest paid over the life of the Series 1995 Bonds will be $ . The source of
repayment or security for this proposal is the County's ad valorem taxes without limit on all taxable property in
the County as provided in the Resolution. Because the Series 1995 Bonds are being paid from a separate tax
levy, the purpose of which is limited to the repayment of the Series 1995 Bonds (and other parity obligations)
and the payment of the Project, authorizing the Series 1995 Bonds will not affect the amount of County funds
available to finance other capital projects of the County. This truth -in -bonding statement prepared pursuant to
Section 218.385(2) and (3) of the Florida Statutes, as amended, is for informational purposes only and shall not
affect or control the actual terms and conditions of the Series 1995 Bonds."
(No addition or alteration is to be made to this Official Bid Form, and it must be submitted with the
Official Notice of Bond Sale.)
*Prelimina . subject to change.
By:
3
EXHIBIT D
LETTER OF REPRESENTATION
Blanket Issuer Letter of Representations
ITo be Completed by Issuer)
I Name of 1wierI
)Mv
Allcntiun: Underwriting Dcl)arimciii --- I?ligibility
The Depositor'- 'frust Company
55 Nater Strecrt; 50th Floor.
New York, NY 100.11-0095)
I ,.I(li(.s .u►d Gentlemen:
This letter sats Iiwth om. 1111derst.ulding with r('sl)ect to all issues (the "Seenrities") that Issuer
shall r(.(Iucst be Illadc eligible Ior deposit I►v'I'he Deposito l -N. Trust Connally ("DTC").
To induce IYI'C to accept the Securities as eligible Ii►r deposit at D IX" alld to act in accol-d;ulce
with DTC's I1111cs with respect to the Secln•itics, Issuer. represents to DTC that Issuer will comply
with the re(Illll-villellts stated ill I)'I'C'ti Oper.ltl(Illal An-mig('l emits, as they may I1('.1111('ll led Ciotti
time t(1 tulle.
Note: Very trllly v(nn•s,
Schedule A ccnitains staff -mems that DTC bclic\cs
accnratcly describe DTC. ill(• method of 4.11'V ting bUuk-
cntry traiisl*Vrs ofsccaritics (listribiitccl (lu•oligh I )T(:, and
cclii(in related matters. tlszucr
Received and Aceepted:
'1'111? I�I�:POSI'I'OIiY'I'Iil1S'I'COMI'AM'
Bv:
23
By:
(Autlwrized Officer% Sigmitnrcl
EXHIBIT E
BOOK ENTRY SYSTEM
The Bonds shall be initially issued in the form of a separate
single certificated fully registered Bond for each of the
maturities of such Bonds. Upon initial issuance, the ownership of
each such Bond shall be registered in the registration books kept
by the Registrar in the name of Cede & Co. ("Cede"), as nominee of
The Depository Trust Company (11DTC11).
With respect to Bonds registered in the registration books
kept by the Registrar in the name of Cede, as nominee of DTC, the
Issuer, the Registrar and the Paying Agent shall have no
responsibility or obligation to any such Participant or to any
indirect participant. Without limiting the immediately preceding
sentence, the Issuer, the Registrar and the Paying Agent shall have
no responsibility or obligation with respect to (i) the accuracy of
the records of DTC. Cede or any Participant with respect to any
ownership interest in the Bonds, (ii) the delivery to any
Participant or any other person other than a Bondholder, as shown
in the registration books kept by the Registrar, of any notice with
respect to the Bonds, including any notice of redemption, or (iii)
the payment to any Participant or any other person, other than a
Bondholder, as shown in the registration books kept by the
Registrar, of any amount with respect to principal of, premium, if
any, or interest on the Bonds. The Issuer, the Registrar and the
Paying Agent may treat and consider the person in whose name each
Bond is registered in the registration books kept by the Registrar
as the holder and absolute owner of such Bond for the purpose of
payment of principal, premium and interest with respect to such
Bond, for the purpose of giving notices of redemption and other
matters with respect to such Bond, for the purpose of registering
transfers with respect to such Bond, and for all other purposes
whatsoever. The Paying Agent shall pay all principal of, premium,
if any, and interest on the Bonds only to or upon the order of the
respective Holders, as shown in the registration books kept by the
Registrar, or their respective attorneys duly authorized in
writing, as provided herein and all such payments shall be valid
and effective to fully satisfy and discharge the Issueres
obligations with respect to payment of principal of, premium, if
any, and interest on the Bonds to the extent of the sum or sums so
paid. No person other than a Holder, as shown in the registration
books kept by the Registrar, shall receive a certificated Bond
evidencing the obligation of the Issuer to make payments of prin-
cipal, premium, if any, and interest pursuant to the provisions
hereof. Upon delivery by DTC to the Issuer of written notice to
the effect that DTC has determined to substitute a new nominee in
place of Cede, and subject to the provisions herein with respect to
Record Dates, the word "Cede" in this Resolution shall refer to
such new nominee of DTC; and upon receipt of such a notice the
Issuer shall promptly deliver a copy of the same to the Registrar
and the Paying Agent.
Upon receipt by the Issuer of written notice from DTC (i) to
the effect that DTC has received written notice from the Issuer or
from Participants having interests, as shown in the records of DTC,
in an aggregate principal amount of not less than fifty percent
(50%) of the aggregate principal amount of the then outstanding
Bonds to the effect that a continuation of the requirement that all
of the outstanding Bonds be registered in the registration books
kept by the Registrar in the name of Cede, as nominee of DTC, is
not in the best interest of the beneficial owners of the Bonds of
such Series or (ii) to the effect that DTC is unable or unwilling
to discharge its responsibilities and no substitute depository
willing to undertake the functions of DTC hereunder can be found
which is willing and able to undertake such functions upon
reasonable and customary terms, such Bonds shall no longer be
restricted to being registered in the registration books kept by
the Registrar in the name of Cede, as nominee of DTC, but may be
registered in whatever name or names Holders transferring or
exchanging such Bonds shall designate, in accordance with the
provision of hereof.
EXHIBIT F
PRELIMINARY OFFICIAL STATEMENT
PRELIMINARY OFFICIAL STATEMENT DATED JUNE 29, 1995
NEW ISSUE - BOOK -ENTRY ONLY
Draft #2
June 9, 1995
(See "Bond Ratings" herein)
In the opinion of Bond Counsel, under existing laws, regulations and judicial decisions, interest
on the Bonds is excluded from gross income for purposes of federal income taxation and the Bonds are
exempt frora all present intangible personal property taxes imposed pursuant to Chapter 199, Florida
Statutes, but are subject to Florida estate taxes and taxes imposed by Chapter 220, Florida Statutes, as
applicable. See, however "Tax Exemption " herein for a description of certain federal minimum and other
special taxes that may affect the tax treatment of interest on the Bonds.
Dated: July 19 1995
$15,0009,000 *
INDIAN RIVER COUNTY, FLORIDA
GENERAL OBLIGATION BONDS, SERIES 1995
Due: August 1, as shown below
Indian River County, Florida (the "County"), is issuing its General Obligation Bonds, Series 1995
(the "Bonds"), as fully registered bonds in the denomination of $5,000 or any integral multiple thereof.
Interest on the Bonds will be payable February 1, 1996, and semiannually thereafter (February 1 and
August 1 of each year) to their respective dates of maturity. The Bonds will be initially registered only
in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York
("DTC"), which will act as securities depository for the Bonds. The Bonds will be available to
purchasers only under the book -entry system maintained by DTC through brokers and dealers who are,
or act through, DTC Participants. Purchasers will not receive delivery of the Bonds. So long as any
purchaser is the Beneficial Owner (as defined herein) of a Bond, he must maintain an account with a
broker or dealer who is, or acts through, a DTC Participant to receive payment of principal of and
interest on such Bond. See "DESCRIPTION OF THE BONDS - BOOK -ENTRY ONLY SYSTEM"
herein.
Certain of the Bonds are subject to optional redemption as described herein.
The Bonds are being issued under the authority of, and in full compliance with, the Constitution
and Statutes of the State of Florida, including particularly Chapter 125, Florida Statutes, and other
applicable provisions of law, and pursuant to the terms and conditions of Resolution No. 95-63 (the
"Resolution"), adopted by the Board of County Commissioners of the County (the "Board"), on May 16,
1995, as supplemented, to (1) finance the cost of acquiring environmentally significant land to protect
water quality, open spaces and wildlife habitat, as more specifically set forth in the Resolution (the
"Project"); and (2) pay certain expenses related to the issuance and sale of the Bonds. See the discussion
under the heading "PURPOSE OF ISSUANCE" herein.
The Bonds and the interest thereon will be payable from and will be secured forthwith equally
and ratably by a lien upon ad valorem taxes levied without limit as to rate or amount upon all taxable
property in the County (the "Ad Valorem Taxes"). The County has pledged its full faith, credit and ad
valorem taxing power to the payment of the principal, premium, if any, and interest on the Bonds. For
a discussion of the security for the Bonds, see the information under the heading "SECURITY AND
SOURCES OF PAYMENT FOR THE BONDS" herein.
3247/IND38002-9/POS-COVER- 1
S� �r
1
1,
The County expects to receive commitments from municipal bond insurers to issue a municipal
bond insurance policy insuring the payment ofrinci al and interest, when due, on the Bonds. The
P P
provision of municipal bond insurance is optional as further described in the Official Notice of Sale.
Identification of the municipal bond insurer selected by the County will be provided [by Munifacts] prior
to the date bids are required to be submitted. See the material under the heading "MUNICIPAL BOND
!� INSURANCE" herein.
1
MATURITIES, AMOUNTS, INTEREST RATES AND PRICES OR YIELDS*
Price
Year Amount Rte or Yield Year
1996
2004
1997
2005
1998
2006
1999
2007
2000
2008
2001
2009
2002
2010
2003
Price
Amount Rate or Yield
(Accrued interest, from July 1, 1995 to be added)
The Bonds are offered when, as and if issued, subject to receipt of the legal opinion of Bryant,
Miller and Olive, P.A., Tallahassee, Florida, Bond Counsel. Squire, Sanders & Dempsey, Jacksonville,
Florida, is serving as Disclosure Counsel to the County in connection with the issuance of the Bonds.
Certain legal matters will be passed on for the County by Charles P. Vitunac, County Attorney. Fishkind
& Associates, Inc. is serving as Financial Advisor to the County in connection with the issuance of the
Bonds. It is expected that the Bonds in book -entry form will be available for delivery to the Underwriter
at The Depository Trust Company ("DTC") in New York, New York, on or about July 25, 1995.
This cover page contains certain information for quick reference only. It is not a summary of this
issue. Investors must read this entire official statement to obtain information essential to making an
informed investment decision.
SEALED BIDS FOR THE BONDS WILL BE RECEIVED BY INDIAN RIVER COUNTY,
FLORIDA, UNTIL A.M., EASTERN DAYLIGHT TIME, ON JULY 10,1995, AT THE
OFFICE OF THE DIRECTOR OF MANAGEMENT AND BUDGET, 1840 25TH STREET, VERO
BEACH, FLORIDA 32960, AS PROVIDED IN THE OFFICIAL NOTICE OF SALE . THIS
PRELIMINARY OFFICIAL STATEMENT IS "DEEMED FINAL" BY THE COUNTY AS OF ITS
DATE FOR PURPOSES OF, AND EXCEPT FOR CERTAIN OMISSIONS PERMITTED BY, SEC
RULE 15C2 -12(b)(1).
Dated , 1995
* Preliminary, Subject to Change
3247/1ND38002-9/POS-COVER-1
COUNTY ATTORNEY
Charles P. Vitunac
3247/IND38002-9/POS-BODY-1
INDIAN RIVER COUNTY, FLORIDA
1840 25th Street
Vero Beach, Florida 32960
BOARD OF COUNTY COMMISSIONERS
Kenneth R. Macht, Chairman
Fran B. Adams, Vice -Chairman
Carolyn K. Eggert
John W. Tippin
Richard N. Bird
COUNTY ADMINISTRATOR
James E. Chandler
CLERK OF THE CIRCUIT COURT
Jeffrey K. Barton
FINANCE DIRECTOR
Edwin M. Fry, Jr.
DIRECTOR OF MANAGEMENT AND BUDGET
Joseph A. Baird
FINANCIAL ADVISOR
Fishkind & Associates, Inc.
Orlando, Florida
BOND COUNSEL
Bryant, Miller and Olive, P.A.
Tallahassee, Florida
DISCLOSURE COUNSEL
Squire, Sanders & Dempsey
Jacksonville, Florida
No dealer, broker, salesperson, or any other person has been authorized by the County or the
Underwriter to give any information or to make any representations, other than those contained in this
Official Statement, and, if given or made, such other information or representations must not be relied
upon as having been WWized by the County or the Underwriter. This Official Statement does not
constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds
by any persons 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 furnished by the County and includes
information obtained from other sources which are believed to be reliable, but is not guaranteed as to
accuracy or completeness by, and is not to be construed as a representation of, the Underwriter. The
information and expressions of opinion 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
the implication that there has been no change in the affairs of the County since the date hereof.
Upon issuance, the Bonds will not be registered under the Securities Act of 1933, and will not
be listed on any stock or other securities exchange; and neither the Securities and Exchange Commission
nor any other federal, state, municipal or other governmental entity, other than the County, will have
passed upon the accuracy or adequacy of this Official Statement or approved the Bonds for sale.
IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITER MAY
OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET
PRICE OF SUCH BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL
IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED
AT ANY TIME.
References herein to laws, rules, regulations, resolutions, agreements, reports and other
documents do not purport to be comprehensive or definitive. All references to such documents are
qualified in their entirety by reference to the particular document, the full text of which may contain
qualifications of and exceptions to statements made herein. Where full texts have not been included as
appendices to this Official Statement, they will be furnished on request.
3247/1 N D38002-9/POS-BODY-1
TABLE OF CONTENTS
Pane
SUMMARY STATEMENT ............................................ i
TheCounty .................................................. i
Purpose of the Bonds ............................................ i
Sources and Security of Payment for the Bonds ........................... i
Description of the Bonds ......................................... i
Municipal Bond Insurance ........................................ ii
TaxExemption ............................................... ii
Authority for Issuance ........................................... ii
Offering and Delivery of the Bonds ................................... iii
INTRODUCTION.................................................. 1
AUTHORITY FOR BONDS ............................................ 1
PURPOSE OF ISSUANCE ............................................. 2
THE ACQUISITION PROGRAM ........................................ 2
DESCRIPTION OF THE BONDS ........................................ 2
General.................................................... 2
Book -Entry Only System ......................................... 3
Discontinuance of Securities Depository ................................ 5
Optional Redemption ............................................ 5
Notice and Effect of Redemption .................................... 6
SOURCES AND USES OF FUNDS ....................................... 7
SECURITY AND SOURCES OF PAYMENT FOR THE BONDS .................... 9
FUTURE FINANCINGS .............................................. 9
AD VALOREM TAX MATTERS ....................................... 10
Property Assessment Procedure .................................... 10
Ad Valorem Tax Rates ......................................... 10
Levy and Collection of Ad Valorem Taxes ............................. 11
Historical Table of Assessed Value .................................. 12
Historical Ad Valorem Millage Rates ................................ 13
Collections ................................................. 14
Comparative Ratios of Bonded Debt ................................. 15
Ten Largest Taxpayers .......................................... 16
MUNICIPAL BOND INSURANCE ...................................... 17
THECOUNTY ................................................... 17
Background ................................................. 17
County Government ........................................... 17
3247/IND38W2-9/P0S-B0DY-1
TheBoard ................................................. 17
Administration/County Staff ...................................... 18
COUNTY FINANCIAL MATTERS ...................................... 18
Budgetary Process ............................................ 18
Description of Financial Practices ................................... 19
Investment Policy ............................................. 21
Financial Statements and Annual Audit ............................... 22
VALIDATION ................................................... 22
LITIGATION.................................................... 22
LEGAL MATTERS ................................................ 23
TAX EXEMPTION ................................................ 23
ADVISORS AND CONSULTANTS ...................................... 24
UNDERWRITING ................................................. 25
BOND RATINGS .................................................. 25
DISCLOSURE MATTERS ............................................ 25
Certificate as to Official Statement .................................. 25
Continuing Disclosure .......................................... 25
Miscellaneous ............................................... 27
APPENDIX A -- FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994
[AND THE PERIOD ENDING , 1995]
APPENDIX B -- GENERAL INFORMATION PERTAINING TO INDIAN RIVER COUNTY,
FLORIDA
APPENDIX C -- FORM OF BOND RESOLUTION
APPENDIX D -- FORM OF BOND COUNSEL OPINION
APPENDIX E -- FORM OF MUNICIPAL BOND INSURANCE POLICY
3247AND38M-9/POS-BODY-1
SUMMARY STATEMENT
This Summary Statement is subject in all respects to more complete information and to the
definitions contained or incorporated in this Official Statement. The offering of the Bonds to potential
investors is made only by means of this entire Official Statement. No person is authorized to detach this
Summary Statement from this Oficial Statement or otherwise to use this Summary Statement without this
entire Oficial Statement. For a complete description of the terms and conditions of the contract between
the County and the owners of the Bonds, reference is made to the form of Resolution, the form of which
is included herein as Appendix C.
The County
Indian River County (the "County") was established in 1925 by an act of the Florida 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 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 about 23 miles of Atlantic beaches.
Purpose of the Bonds
The proceeds to be received by the County from the sale of the Bonds will be used by the County
pursuant to the Resolution to provide funds (1) to finance the cost of acquiring environmentally significant
land to protect water quality, open spaces and wildlife habitat; and (2) to pay certain expenses related to
the issuance and sale of the Bonds. See the discussion under the heading "PURPOSE OF ISSUANCE"
herein.
Sources and Security of Payment for the Bonds
The Bonds are general obligations of the County secured by a pledge of the full faith, credit and
taxing power of the County. In the Resolution the County has covenanted to levy ad valorem property
taxes on all non-exempt property located within the boundaries of the County, without limit as to amount
or rate ("Ad Valorem Taxes"). See "SECURITY AND SOURCES OF PAYMENT FOR THE BONDS"
herein.
Description of the Bonds
Redemption. The Bonds or portions thereof maturing in the year 2006 and thereafter are subject
to optional redemption prior to their stated maturities, and may be redeemed in the principal amount of
$5,000 each and integral multiples thereof. For more complete information, see "DESCRIPTION OF
THE BONDS" and the subheading "Optional Redemption" thereunder.
Denominations. The Bonds will be issued in denominations of $5,000 each or any integral
multiple thereof.
Book -Entry Only System. The Bonds will be initially registered only in the name of Cede & Co.,
as nominee of The Depository Trust Company, New York, New York ("DTC"), which will act as
securities depository for the Bonds. The Bonds will be available to purchasers only under the book -entry
3247/1 N D38M-9/POS-BODY-1
system maintained by DTC through brokers and dealers who are, or act through, DTC Participants.
Purchasers will not receive delivery of the Bonds. So long as any purchaser is the Beneficial Owner (as
defined herein) of a Bond, he must maintain an account with a broker or dealer who is, or acts through,
a DTC Participant to receive payment of principal of and interest on such Bond. See "DESCRIPTION
OF THE BONDS - Book -Entry Only System" herein.
Paying Agent and Registrar. , Florida (the "Registrar"), will
serve as Paying Agent and Registrar for the Bonds.
Registration and Transfers. The Bonds will be issued in fully registered, book -entry -only form,
registered in the name of Cede & Co., as nominee for DTC. Transfers of book -entry interests will be
accomplished by DTC participants or others who act for the Beneficial Owners, in accordance with DTC
procedures and applicable state laws.
Payments. Payments of principal of and interest on the Bonds will be made by the Registrar
to Cede & Co., as nominee for DTC, which, in turn, will immediately credit the accounts of DTC
participants. The DTC participants will credit the payments to the Beneficial Owners in accordance with
standing instructions and customary practices between DTC and the DTC participants.
For a more complete description of the Bonds and the basic documentation pursuant to which
Bonds are issued, see the "DESCRIPTION OF THE BONDS" herein.
Municipal Bond Insurance
At the option of the bidder, as further described in the Official Notice of Sale, payment of
principal of and interest on the Bonds will be insured by a municipal bond insurance policy to be
delivered simultaneously with the delivery of the Bonds. See "MUNICIPAL BOND INSURANCE"
herein.
Tax Exemption
The legal opinion of Bryant, Miller and Olive, P.A., Bond Counsel, will include an opinion to
the effect that assuming compliance with certain covenants, under existing laws, regulations, judicial
decisions and rulings, (i) interest on the Bonds is excluded from gross income for purposes of federal
income taxation and (ii) the Bonds are exempt from all present intangible personal property taxes imposed
pursuant to Chapter 199, Florida Statutes, but are subject to Florida estate taxes and taxes imposed by
Chapter 220, Florida Statutes, as applicable. Interest on the Bonds is not an item of tax preference for
purposes of the federal alternative minimum tax imposed on individuals or corporations; however, interest
on the Bonds may be subject to the alternative minimum tax when any Bond is held by a corporation.
For a more complete discussion of tax aspects, see "TAX EXEMPTION," herein.
Authority for Issuance
The Bonds are being issued, executed and delivered pursuant to Chapter 125, Florida Statutes,
and other applicable provisions of law (collectively, the "Act"), and pursuant to Resolution No. 95-63,
of the Board, adopted May 16, 1995, as supplemented (herein, collectively, the "Resolution").
3247/MD38MM/POS-BODY-1 ii
Offering and Delivery of the Bonds
The Bonds are offered when, as and if issued, subject to the opinion on certain legal matters
relating to their issuance by Bryant, Miller and Olive, P.A., Tallahassee, Florida, Bond Counsel, and the
satisfaction of certain other conditions. It is anticipated that the Bonds in definitive form will be available
for delivery to the Underwriter at DTC in New York, New York, on or about July 25, 1995.
End of Summary Statement
3247/IND38=-9/P0S-B0DY-1 iii
OFFICIAL STATEMENT
relating to
$15,000,000*
INDIAN RIVER COUNTY, FLORIDA
GENERAL OBLIGATION BONDS, SERIES 1995
INTRODUCTION
The purpose of this Official Statement, which includes the cover page, the Summary Statement,
and the Appendices hereto, is to furnish information with respect to the issuance by Indian River County,
Florida (the "County"), of its General Obligation Bonds, Series 1995 (the "Bonds"). The Bonds in the
aggregate principal amount of $15,000,000*, are authorized to be issued by Resolution No. 95-63,
adopted by the Board of County Commissioners (the "Board") May 16, 1995, as supplemented (herein,
collectively, the "Resolution"). The Resolution authorizes the issuance of not to exceed $26,000,000
aggregate principal amount of general obligation bonds, to be issued in one or more series, of which the
Bonds are the first. See "FUTURE FINANCINGS" herein.
Capitalized terms used herein shall have the same meanings as given to them in the Resolution,
unless otherwise defined herein or where the context would clearly indicate otherwise. The references,
excerpts and summaries of all documents referenced herein do not purport to be complete statements of
the provisions of such documents, and reference is made to the originals of all such documents for full
and complete statements of all matters of fact relating to the Bonds, the security for the payment of the
Bonds, and the rights and obligations of owners thereof. Copies of such documents may be obtained
from Jeffrey K. Barton, Clerk of the Circuit Court, 1840 25th Street Vero Beach, Florida 32960, upon
payment of reproduction costs and postage and handling expenses.
The assumptions, estimates, projections and matters of opinion contained in this Official
Statement, whether or not so expressly stated, are set forth as such and not as matters of fact, and no
representation is made that any of the assumptions or matters of opinion herein are valid or that any
projections or estimates contained herein will be realized. Neither this Official Statement nor any other
statement which may have been made verbally or in writing in connection with the Bonds, other than the
Resolution, is to be construed as a contract with the owners of the Bonds.
AUTHORITY FOR BONDS
The Bonds are being issued by the County under the authority of and in full compliance with the
Constitution and Statutes of the State of Florida, including particularly Chapter 125, Florida Statutes;
Resolution No. 92-146 of the Board, adopted August 18, 1992; the vote of the electors of the County on
November 3, 1992, in accordance with Chapter 100, Florida Statutes; and the Resolution.
*Preliminary, Subject to Change
3247/IND38M-9/P0S-B0DY-1
PURPOSE OF ISSUANCE
The Bonds are being issued to provide funds (1) to acquire by purchase, interests in land,
including but not limited to, fee simple interest, less than fee simple interest, conservation easements,
development rights and other similar interests in environmentally significant lands, together with the
necessary restoration, remediation and reclamation activities to preserve and enhance such property,
including customary and necessary costs and expenses incurred in the acquisition of such lands and
expenses incident to the sale, issuance and delivery of the Bonds (collectively, the "Project"); and (ii) to
pay certain expenses associated with the issuance and delivery of the Bonds.
For a complete description of the terms and conditions of the Bonds, reference is made to the
Resolution, the form of which is included as Appendix C to this Official Statement, "Form of Bond
Resolution." The description of the Rtsolution, the Bonds and information from reports contained herein
do not purport to be comprehensive or definitive, and reference is made to the complete Resolution, on
file with the County, for the terms thereof.
THE ACQUISITION PROGRAM
The Board has appointed a 17 member Land Acquisition Advisory Committee (the "Advisory
Committee") to make recommendations to the Board regarding the purchase of environmentally significant
lands for conservation purposes, including lands which constitute the Project. The Committee has broad
representation from throughout the County and its membership reflects a diversity of interests.
Among its duties, the Advisory Committee conducts an annual review and ranking of properties
nominated for County acquisition. This ranking is based on established criteria set forth in a Land
Acquisition Guide, which is a procedural document adopted by the Board. All purchase contracts relating
to the program are subject to final approval by the Board at a duly advertised public hearing.
DESCRIPTION OF THE BONDS
General
The Bonds will be dated July 1, 1995, will be issued in fully registered form, without coupons,
in the denominations of $5,000 each or integral multiples thereof, and will bear interest at the rates and
mature on the dates set forth on the cover page of this Official Statement. Interest on the Bonds will
be payable February 1, 1996, and semiannually thereafter (February 1 and August 1 of each year).
Principal of and interest on the Bonds will be payable in the manner described under "Book -Entry Only
System" herein. The Bonds will bear a Certificate of Authentication to be manually executed by the
Registrar, and no Bond will be valid or obligatory for any purpose unless the Certificate of Authentication
thereon has been duly executed by the Registrar. Certain of the Bonds will be subject to redemption as
described below under "Optional Redemption."
3247AND38M-9/1'OS-BODY-1 2
Book -Entry Only System
The Depository Trust Company ("DTC"), New York, New York, or its successor, will act as
securities depository for the Bonds. The Bonds will be issued as fully registered securities in the name
of Cede & Co. (DTC's partnership nominee). One fully -registered Bond certificate for each maturity will
be issued, in the aggregate principal amount of such maturity and will be deposited with DTC.
So long as Cede & Co. is the registered owner of the Bonds, payments of the principal of and
interest due on the Bonds will be payable directly to DTC. References herein to the registered owners
of the Bonds shall mean DTC or Cede & Co., and shall not mean the Beneficial Owners referred to
below.
DTC is a limited purpose trust company organized under the New York Banking Law, a "banking
organization" within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code and
a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act
of 1934. DTC holds securities that its participants (the "Participants") deposit with DTC. DTC also
facilitates the settlement among Participants of securities transactions, such as transfers and pledges in
deposited securities through electronic computerized book -entry changes in accounts of the Participants,
thereby eliminating the need for physical movement of securities certificates. Direct Participants include
securities brokers and dealers, banks, trust companies, clearing corporations, and certain organizations.
DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the
American Stock Exchange, Inc. and the National Association of Securities Dealers, Inc. Access to the
DTC system is also available to others such as securities brokers and dealers, banks and trust companies
that clear through or maintain a custodial relationship with a Direct Participant, either directly or
indirectly (the "Indirect Participants"). The rules applicable to DTC and its Participants are on file with
the Securities and Exchange Commission.
Purchases of the Bonds under the DTC system may be made by or through Direct
Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of
each actual purchaser of the Bonds (the "Beneficial Owner") is in turn to be recorded in the records of
the applicable DTC Direct or Indirect Participant. Beneficial Owners will not receive written
confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written
confirmations providing details of the transaction, as well as periodic statements of their holdings, from
the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction.
Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of
Participants acting on behalf of the Beneficial Owners. Beneficial Owners will not receive certificates
representing their ownership interest in Bonds, except in the event that use of the book -entry system for
the Bonds is discontinued. No Bonds will be registered in the names of the Beneficial Owners, except
in the event participation in the book -entry system is discontinued as described below.
To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered
in the name of DTC's partnership nominee, Cede & Co. The deposit of Bonds and their registration in
the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to
whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The
Participants will remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants and by Direct Participants and Indirect Participants to Beneficial
3247/IND38002-9/POS-BODY-1 3
Owners will be governed by arrangements among them, subject to any statutory or regulatory
requirements as may be in effect from time to time.
Redemption notices will be sent to Cede & Co. If less than all of the Bonds within a maturity
of a series are being redeemed, DTC's practice is to determine by lot the amount of the interest of each
Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. will consent or vote with respect to the Bonds. Under its usual
procedures, DTC mails an Omnibus Proxy to the County as soon as possible after the record date. The
Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose
accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Principal and interest payments on the Bonds will be made to DTC. DTC's practice is to credit
Direct Participants' accounts on the payable date in accordance with their respective holdings shown on
DTC's records unless DTC has reason to believe that it will not receive payment on the payable date.
Payments by Participants to Beneficial Owners will be governed by standing instructions and customary
practices, as is the case with securities held for the accounts of customers in bearer form or registered
in "street name", and will be the responsibility of such Participant and not of DTC, the Paying Agent or
the County, subject to any statutory or regulatory requirements as may be in effect from time to time.
Payment of principal and interest to DTC is the responsibility of the County or the Paying Agent,
disbursement of such payments to Direct Participants shall be the responsibility of DTC, and
disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect
Participants.
DTC may discontinue providing its services as securities depository with respect to the Bonds at
any time by giving reasonable notice to the County or the Paying Agent. Under such circumstances, in
the event that a successor securities depository is not obtained, Bond certificates will be printed and
delivered.
The County may decide to discontinue use of the book -entry only system for transfers through
DTC (or a successor securities depository). In such event, Bond certificates will be printed and
delivered.
The information in this section concerning DTC and DTC's book -entry only system has been
obtained from DTC. Neither the County, the Registrar nor the Underwriter make any representation or
warranty regarding the accuracy or completeness thereof.
SO LONG AS CEDE & CO., AS NOMINEE FOR DTC, IS THE SOLE BONDHOLDER,
THE COUNTY AND THE REGISTRAR SHALL TREAT CEDE & CO. AS THE ONLY OWNER
OF THE BONDS FOR ALL PURPOSES UNDER THE RESOLUTION INCLUDING (1) RECEIPT
OF ALL PRINCIPAL OF AND INTEREST ON THE BONDS, (2) RECEIPT OF NOTICES, (3)
VOTING AND (4) REQUESTING OR DIRECTING THE COUNTY AND THE REGISTRAR TO
TAKE OR NOT TO TAKE, OR CONSENTING TO, CERTAIN ACTIONS UNDER SUCH
RESOLUTION. THE COUNTY AND THE PAYING AGENT HAVE NO RESPONSIBILITY OR
OBLIGATION TO THE PARTICIPANTS OR THE BENEFICIAL OWNERS WITH RESPECT
TO (A) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY PARTICIPANT;
(B) THE PAYMENT BY ANY PARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL
OWNER IN RESPECT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS; (C) THE
DELIVERY OR TIMELINESS OF DELIVERY BY ANY PARTICIPANT OI' ANY NOTICE TO
ANY BENEFICIAL OWNER WHICH IS REQUIRED OR PERMITTED UNDER THE TERMS
3247/IND3M-9/P0S-B0DY-1 4
OF THE RESOLUTION TO BE GIVEN TO BONDHOLDERS; (D) THE SELECTION BY DTC
OR ANY DTC PARTICIPANT OR INDIRECT PARTICIPANT OF ANY BENEFICIAL OWNER
TO RECEIVE PAYMENT IN THE EVENT OF A PARTIAL REDEMPTION OF THE BONDS;
OR (E) OTHER ACTION TAKEN BY DTC OR CEDE & CO., AS BONDHOLDER.
Discontinuance of Securities Depository
DTC may discontinue providing its services with respect to the Bonds at any time by giving
notice to the County and discharging its responsibilities with respect thereto under applicable law, or the
County may terminate its participation in the system of book -entry transfers through DTC at any time.
In the event that the DTC book -entry only system is discontinued and it is not replaced with another
book -entry system, the following provisions will apply: principal of the Bonds will be payable in lawful
money of the United States of America at the principal office of the Registrar. Interest on the Bonds will
be payable on each February 1 and August 1 by check or draft mailed to the respective addresses of the
Registered Owners thereof as shown on the registration books of the County maintained by the Registrar
as of the record date therefor as set forth in the Resolution[; provided, however, that the registered owner
of any Bond in the principal amount of $1,000,000 or more may, upon written request made to the
Registrar and at the expense of such registered owner, direct that payment of interest thereon be made
by wire transfer or any other medium acceptable to the County and to such registered owner, all as more
specifically provided in the Resolution). The transfer of the Bonds will be registrable and they may be
exchanged at the principal office of the Registrar, upon the payment of any taxes, fees or other
governmental charges required to be paid with respect to such transfer or exchange.
The person in whose name any Bond is registered will be deemed and regarded as the absolute
owner thereof for all purposes and payment of or on account of the principal or redemption price of any
Bond, and the interest on any such Bonds, will be made only to or upon the order of the registered owner
thereof or his or her legal representative.
Optional Redemption
Bonds or portions thereof maturing in the years to 2005, both inclusive, are not redeemable
prior to their stated dates of maturity. Bonds or portions thereof maturing on August 1, 2006, and
thereafter are redeemable prior to their stated dates of maturity, at the option of the County, as a whole
or in part on August 1, 2005, or on any date thereafter, in such manner approved by the County, at a
redemption price (expressed as a percentage of the principal amount thereof as set forth in the table
below), together with accrued interest on the par amount so redeemed to the redemption date, if redeemed
in the following periods:
Redemption Period
(Both Dates Inclusive) Redemption Price
August 1, 2005, to July 31, 2006
102%
August 1, 2006, to July 31, 2007
101%
August 1, 2007, and thereafter
100%
32477AND38M-9/POS-BODY-1 5
Notice and Effect of Redemption
Notice of such redemption must, not more than 6G .lays or less than 30 calendar days prior to
the redemption date, be filed with the Registrar and be mailed, postage prepaid, by the Registrar to all
owners of Bonds to be redeemed at their addresses as they appear on the registration books of the
Registrar; provided, however, that failure to mail such notice of redemption to one or more owners will
not affect the validity of the proceedings for such redemption with respect to the owners to which notice
was duly mailed in accordance with the Resolution. Each such notice will set forth the date fixed for
redemption, the redemption price to be paid and, if less than all of the Bonds of one maturity are to be
called, the distinctive numbers of such Bonds to be redeemed, and in the case of Bonds to be redeemed
in part only, the portion of the principal amount thereof to be redeemed.
Upon surrender of any Bond for redemption in part only, the Registrar shall authenticate and
deliver to the owner thereof, a new Bond of an authorized denomination equal to the unredeemed portion
of the Bond surrendered.
In addition to the foregoing notice, notice of redemption shall be sent, at least thirty-two (32) days
before the redemption date. by registered or certified mail or overnight delivery service (at the expense
of the addressee) to all registered securities depositories then in the business of holding substantial
amounts of obligations of types such as the Bonds (such depositories now being DTC; Midwest Securities
Trust Company and Philadelphia Depository Trust Company) and to one or more national information
services that disseminate notices of redemption of obligations such as the Bonds.
For so long as a book -entry only system of registration is in effect with respect to the Bonds, the
Registrar will mail notices of redemption to DTC or its successor. Any failure of DTC to convey such
notice to any DTC Participants or any failure of DTC Participants to convey such notice of any Beneficial
Owner will not affect the sufficiency or the validity of the redemption of the Bonds. See "Book -Entry
Only System" herein.
3247/1ND3@W-9/P0S-90DY•1 6
SOURCES AND USES OF FUNDS
The table that follows summarizes the estimated sources and uses of funds to be derived from the
sale of the Bonds.
SOURCES:
USES:
Principal Amount of Bonds $
Accrued Interest
TOTAL SOURCES
Underwriter's Discount
Accrued Interest
Reimbursement to County(1)
Deposit to Acquisition Fund
Costs of Issuance(2)
TOTAL USES
H
(1) Includes reimbursement to the County of certain project costs incurred
by the County prior to issuance of the Bonds.
(2) Includes fees and disbursements of counsel and financial advisor and other
costs of issuance relating to the Bonds, including municipal bond insurance
premium, if applicable.
3247/IND3M-9/P0S-B0DY-1 7
DEBT SERVICE SCHEDULE
The following table presents the annual debt service requirements of the County for the Bonds:
Year Ending
September 30 Principil Interest Total
3247/IND3M-9/PQS•8ODY•1 8
SECURITY AND SOURCES OF PAYMENT FOR THE BONDS
The Bonds constitute general obligations of the County, and the full faith, credit and taxing power
of the County are pledged for the prompt payment when due of principal, premium, if any, and interest
on the Bonds. The Bonds will be payable from ad valorem taxes levied by the County upon the taxable
real and personal property within the County, without limitation as to rate or amount, for such purpose
(herein the "Ad Valorem Taxes").
On May 16, 1995, the Board adopted the Resolution providing for the issuance of the Bonds to
finance the costs of the Project. The Resolution creates and establishes a Debt Service Fund, which will
be held and administered by the County solely for the purpose of paying the principal, premium, if any,
and interest on the Bonds, as they become due.
All Ad Valorem Taxes levied to pay the Bonds, as collected by the County Tax Collector, must
be deposited into the Debt Service Fund. Money deposited in the Debt Service Fund must be held by
the County for the payment of the principal, premium, if any, and interest on the Bonds as they severally
become due, and may be expended for no other purpose. The Debt Service Fund may be invested in
"Authorized Investments" as defined in the Resolution, the form of which is included herein as Appendix
C.
The Resolution requires that the dates and amounts of payment of the principal of and interest
on the Bonds be structured by the County in such a manner that the millage rate required to make the
maximum annual payment of principal and interest on the Bonds will not exceed 1/2 mill, based on the
assessed value of all real property in the County subject to Ad Valorem Taxes, on the date of issuance
of the Bonds. This requirement does not limit the security for the Bonds or the rate of tax which may
be imposed to provide for the payment of the Bonds.
FUTURE FINANCINGS
The Resolution authorizes the issuance of not to exceed $26,000,000 aggregate principal amount
of general obligation bonds, to be issued in one or more series, of which the Bonds are the first. The
County anticipates issuing the remaining authorized amount of general obligation bonds over the next 3
to 5 years as qualified properties with willing sellers are identified. Any such additional general
obligation bonds issued will constitute "Bonds" under the Resolution for which the full faith and credit
and unlimited taxing power of the County are pledged on the same basis as the Bonds. There is no test
for issuance of any additional general obligation bonds under the Resolution, other than the limitation
discussed above requiring bonds to be structured so that at the time of issuance the millage rate required
to make the maximum annual debt service payment must not exceed 1/2 mill of the then assessed value
of all taxable lands in the County.
3247/IND3M-9/P0S-B0DY-1 9
AD VALOREM TAX MATTERS
Property Assessment Procedure
Under Florida (the "State") law the assessment of all properties and the collection of all county,
school district and other taxing authorities property taxes are consolidated in the offices of the County
Property Appraiser and County Tax Collector. The laws of the State regulating tax assessment are
designed to assure a consistent property valuation method statewide.
All taxable real property and tangible personal property must be assessed at just value, with
certain exceptions. Real and personal property valuations are determined each year as of January 1 by
the Property Appraiser's office. The assessment roll is prepared between January 1 and July 1, with each
taxpayer given notice of any increase in assessment.
The property owner has the right to file an appeal with the Value Adjustment Board, which
considers petitions relating to assessments and exemptions. The Value Adjustment Board certifies the
assessment roll upon completion of the hearing of all appeals; however, provision is made by law for
certification of the assessment roll prior to completion of the hearings. Millage rates are computed by
the various taxing authorities and certified to the Property Appraiser, who applies the millage rates to the
assessment roll. This procedure creates the tax roll, which is then turned over to the Tax Collector on
or about the first Monday in October.
Certain exemptions are available to permanent residents of the State, including, among others,
a homestead exemption not exceeding $25,000.
By voter referendum held on November 3, 1992, Article VII, Section 4 of the Florida
Constitution was amended by adding thereto a subsection which, in effect, limits the increases in assessed
just value of homestead property to the lesser of (1) 3% of the assessment for the prior year or (2) the
percentage change in the Consumer Price Index for all urban consumers, U.S. City Average, all items
1967-100, or successor reports for the preceding calendar year as initially reported by the United States
Department of Labor, Bureau of Labor Statistics. Further, the amendment provides that (1) no
assessment shall exceed just value; (2) after any change of ownership of homestead property or upon
termination of homestead status, such property shall be reassessed at just value as of January 1 of the year
following the year of sale or change of status; (3) new homestead property shall be assessed at just value
as of January 1 of the year following the establishment of the homestead; and (4) changes, additions,
reductions or improvements to homestead shall initially be assessed as provided by general law, and
thereafter as provided in the amendment. The effective date of the amendment was January 15, 1993 and
the base year for determining compliance with the restrictions is 1994. The 1995 tax roll year will be
the first year such limitations are effective and, as such, the County is not able to determine at this time
the impact, if any, this limitation will have on property assessments.
Ad Valorem Tax Rates
There is no limitation as to the rate or amount of ad valorem taxes levied by the County for the
purposes of paying debt service on general obligation bonds whose issuance has been approved at a
referendum election duly called and held. Ad valorem taxes levied for operating purposes by the County
are limited to 10 mills, except for voted levies.
3247/IND38002-9/POS-BODY-1 10
In 1973 the State of Florida enacted legislation in order to encourage public awareness of
spending and taxing decisions of local elected officials. This legislation was amended in 1980 by the
"TRIM BILL" (Truth in Millage). Under the TRIM BILL, a "roll -back tax rate" is defined as the millage
rate that would produce the same ad valorem taxes in each current year as were levied in the previous
year, exclusive of any increase in assessments resulting from new construction.
Concurrent with the enactment of a locally shared half -cent sales tax, a millage rollback was
mandated by State law and increases were limited for a period of 3 years ending with fiscal year 1985.
These limits excluded voted millages and, in any event, are no longer in effect.
Regardless of the tax rates established by the various taxing authorities, each taxpayer is notified
by first class mail of his proposed property tax prior to the public hearings required to be held for the
adoption of the final budget and millage rate.
Levy and Collection of Ad Valorem Taxes
All real and tangible personal property taxes are due and payable annually. A notice is mailed
to each property owner on the tax roll on November 1 of each year, or as soon thereafter as the tax roll
is certified and delivered to the Tax Collector, for taxes levied by the county, school district and other
taxing authorities. Taxes may be paid upon receipt of such notice, with discounts at the rate of 4% if
paid in the month of November; 3% if paid in the month of December; 2% if paid in the month of
January; and 1 % if paid in the month of February. Taxes paid during the month of March are without
discount. All unpaid real and tangible personal property taxes become delinquent on April 1 of the year
following the year in which the taxes are levied.
Delinquent real property taxes bear interest at the rate of 18% per year from April 1 until a
certificate is sold at auction, from which time the interest rate is in accordance with the bid by the buyer
of the certificate. Delinquent tangible personal property taxes also bear interest at a rate of 18% per year
from April 1 until paid. Tax certificates for delinquent personal property taxes must be advertised for
sale within 45 days after delinquency, and after May 1 the property is subject to levy, seizure and sale.
Florida law provides that all taxes are first liens, superior to all other liens, except United States
Internal Revenue Service liens, on any property against which the taxes have been assessed, and continue
in full force and effect from January 1 of the year the taxes are levied until discharged by payment or
until barred pursuant to Florida law. The Tax Collector advertises tax certificates for sale once each
week for 4 consecutive weeks, and sells tax certificates on or before June 1 for unpaid tax bills. Tax
certificates not sold at auction become the property of the County.
If the owner of real property subject to a tax certificate does not redeem the certificate within 2
years, the holder of the certificate is entitled to apply for a tax deed of sale, the highest bidder at such
sale receiving a tax deed for the property. To redeem a tax certificate, the owner of the property must
pay all delinquent taxes, the interest that accrued prior to the date of the sale of the tax certificate,
charges incurred in connection with the sale of the tax certificate, omitted taxes, if any, and interest at
the rate shown on the tax certificate (subject to certain statutory limitations) from the date of the sale of
the tax certificate to the date of redemption.
3247AND38W2-9/POS-BODY-1 I I
Historical Table of Assessed Value
The following table sets forth the assessed and estimated actual value of taxable property in the
County for the last 10 fiscal years.
INDIAN RIVER COUNTY, FLORIDA
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY
Last 10 Fiscal Years
Source:
Comprehensive Annual Financial Report for Fiscal Year 1994, Indian River County;
State of Florida, Department of Revenue.
3247/IND38M-9/P0S-B0DY-I 12
Percent of
Total
Total Assessed
personal
Total
Estimated
to Total
Fiscal
Real Property
Property
Assessed
Actual
Estimated Actual
Year
Assessed Value
Assessed Value
Value
Value
Value
19%
$6,703,739,975
$372,223,746
$7,075,963,721
$7,061,811,794
100.2%
1993
6,385,346,500
364,537,718
6,749,884,218
6,749,884,218
100.0
1992
6,200,439,440
362,973,529
6,563,412,969
6,656,605,445
98.6
1991
5,353,680,640
347,990,177
5,701,670,817
5,782,627,603
98.6
1990
4,954,816,716
321,397,153
5,276,213,869
5,276,213,869
100.0
1989
4,570,700,250
303,141,158
4,873,841,408
4,873,841,408
100.0
1988
4,387,121,880
280,414,239
4,667,536,119
4,667,536,119
100.0
1987
3,974,458,157
259,733,289
4,234,191,446
4,276,961,057
99.0
1986
3,781,716,839
229,364,177
4,011,081,016
4,011,081,016
100.0
1985
3,534,024,949
187,757,610
3,721,782,559
3,721,782,559
100.0
Source:
Comprehensive Annual Financial Report for Fiscal Year 1994, Indian River County;
State of Florida, Department of Revenue.
3247/IND38M-9/P0S-B0DY-I 12
Historical Ad Valorem Millage Rates
The following table sets forth the tax rates in dollars per $1,000 of assessed valuation for the -County
and all overlapping governmental units for the last ten fiscal years.
INDIAN RIVER COUNTY, FLORIDA
PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS
PER $19000 OF ASSESSED VALUES
Last Ten Fiscal Years
Focal
_
CountwWMe
Total
lndeoen&nt
Districts
Year FAded
County
School Board
othee"
County -Wide
Cities")
otber")
19%
5.77090
9.84460
2.58730
18.20280
4.61054
2.01939
1993
5.65490
9.56260
2.72080
17.93830
4.58254
1.63707
1992
6.15160
9.36170
1.91520
17.42850
4.82256
4.00770
1991
6.77230
8.32080
2.16825
17.26135
6.04394
3.01990
1990
7.14860
8.07040
2.00877
17.22777
6.08563
3.00720
1989
7.03750
7.59160
1.68019
16.30929
5.68680
3.08220
1988
7.21730
7.35880
2.17036
16.74646
5.55240
3.11748
1987
6.15344
6.92340
1.88558
14.96242
5.36896
2.56025
1986
4.72025
6.92780
1.77208
13.42013
3.95872
2.56083
1985
4.46514
6.71380
1.94202
13.12096
3.49458
3.34028
(1) composite tax rate, Indian River Memorial Hospital Voted Debt
(2) Average rate for all municipalities in Indian River County
(3) St. Johns River Water Management District, Florida Inland Navigation District, Indian River County Mosquito Control,
Sebastian Inlet District, Indian River Memorial Hospital Maintenance Levy
source: Comprehensive Annual Financial Report for Fiscal Year 1994, Indian River County
3247/IND38M-9/P0S-B0DY-1 13
Collections
The following table shows the amounts billed and the percent collected for ad valorem property
taxes levied by the County for the last 10 fiscal years.
INDIAN RIVER COUNTY, FLORIDA
TAXES LEVIED AND COLLECTED
Last 10 Fiscal Years
Percent or
Source: Comprehensive Annual Financial Report for Fiscal Year 1994, Indian River County
3247/IND39W-9/P0S-B0DY-1 14
Percent
Delinquent
Total
Total
Fkeal Year
Total
Current Tax
of Levy
Tax
Tax
Collection
Ended
Tax Levy
Collect bta
Collected
Collecttioos
conectioAa
to Levy
1994
$39,304,957
$37,518,799
95.46%
$169,530
$37,688,329
95.89%
1993
37,683,977
36,337,153
96.43
87,830
36,424,983
96.66
1992
36,316,457
34,977,492
96.31
102,452
35,079,944
96.60
1991
34,559,500
33,265,772
96.26
245,389
33,511,161
96.97
1990
32,890,687
31,471,607
95.69
77,376
31,548,983
95.92
1989
28,110,296
26,916,117
95.75
93,088
27,009,205
96.08
1988
27,551,218
27,041,829
98.15
277,384
27,319,213
99.16
1987
22,292,164
21,146,969
94.86
27,719
21,174,688
94.99
1986
17,789,388
16,970,965
95.83
42,828
17,013,793
96.07
1985
15,186,814
14,423,407
94.97
26,216
14,449,623
95.15
Source: Comprehensive Annual Financial Report for Fiscal Year 1994, Indian River County
3247/IND39W-9/P0S-B0DY-1 14
Comparative Ratios of Bonded Debt
The following table shows the comparative ratios of bonded debt to taxable assessed valuations and
per capita indebtedness for the last 10 fiscal years.
INDIAN RIVER COUNTY, FLORIDA
COMPARATIVE RATIOS OF BONDED DEBT
TO TAXABLE ASSESSED VALUATION AND
PER CAPITA INDEBTEDNESS
Last 10 Fiscal Years
(1) Source: Comprehensive Amin Financial Report for Fiscal Year 1994, Indian River County, U.S. Census and Bureau of Business and Economic Research,
University of Florida
(2) Source: Indian River Cw my Property Appraiser
3247/IND38002-9/P0S-B0DY-i 15
Net
cawd
IVet
nem Hsy"
nem PayAk
Roaded
Gem"
Flied
Dem SW*t
from
rrom
Dem a
Boom
Year
iopolalba
Merits V"
Crow
Moak"
Eolerprise
specid
Nd (UNIT l
Assessed
Dem
Faded
(1)
(2)
Road Dem
Aval"
Revenues
Reveaue
Raoded Dem
Valle
Per Copka
1994
97,415
7,075,%3,721
74,390,000
7,713,714
57,990,090
8,686,1%
-0-
0000
-0-
1993
95,641
6,749,884,218
83,583,400
9,709,366
63,699,667
9,428,823
745,544
.0001
7.79
1992
94,091
6,563,412,969
65,300,800
11,376,510
39,656,739
12,163,860
2,103,691
.0003
22.36
1991
92,429
5,701,670,817
60,944,948
10,733,943
32,209,156
14,668,643
3,333,206
.0006
36.06
1990
90,208
5,276,213,869
55,869,701
6,893,665
26,548,620
17,807,931
4,619,485
.0009
51.21
1989
86,800
4,873,841,408
41,853,188
4,040,760
19,338,053
12,574,375
51900,000
.0012
67.97
1988
83,700
4,667,536,119
37,648,875
3,845,510
19,780,100
14,023,265
•0•
.0000
-0-
1987
80,200
4,234,191,446
33,009,775
3,119,121
13,767,782
15,060,901
1,061,971
.0003
13.24
1986
77,700
4,011,081,016
24,764,200
1,313,934
11,924,951
9,383,547
2,141,768
.0005
27.56
1985
75,000
3,721,782,559
18,474,200
1,224,410
9,843,758
4,293,731
3,112,301
.0008
41.50
(1) Source: Comprehensive Amin Financial Report for Fiscal Year 1994, Indian River County, U.S. Census and Bureau of Business and Economic Research,
University of Florida
(2) Source: Indian River Cw my Property Appraiser
3247/IND38002-9/P0S-B0DY-i 15
Tea Largest Taxpayers
The following table sets forth the 10 largest taxpayers in the County, based upon assessed valuation
as of January 1, 1993 (fiscal year ending September 30, 1994).
INDIAN RIVER COUNTY, FLORIDA
TEN LARGEST TAXPAYERS
Percent of
Total
1993 Assessed
Taxpayer Type of Business Assessed Value) Value
Fellsmere Joint Venture
Agriculture
$ 74,239,744
1.05%
Southern Bell
Telephone Utility
54,160,453
.77
John's Island, Inc.
Land Development
49,053,987
.69
Adult Communities Total Services
Health Care
39,377,484
.56
Florida Power & Light
Electric Utility
37,083,835
.52
Windsor Properties & Club
Land Development
36,109,651
.51
Piper Aircraft Company
Aircraft manufacturing
21,558,081
.30
J.M. Berry Groves, Inc.
Agriculture
20,003,610
.28
Belair Groves Joint Venture
Agriculture
19,993,565
.28
Graves Brothers
Agriculture
19.797.794
.28
TOTAL
$371.378.204
5.24°0
(1) 1993 Tax Year (Fiscal Year 1994) Total assessed value of $7,075,963,721
Source: Indian River County Property Appraiser
3247AND38M-9/POS-BODY-1 16
MUNICIPAL BOND INSURANCE
The County has applied to three municipal bond insurers for a commitment for the issuance of a
municipal bond insurance policy insuring the principal and interest on the Bonds when due. Provision
of municipal bond insurance is at the option of the bidder. The identification of the municipal bond
insurer will be provided to prospective bidders by way of (Munifacts] prior to the time bids are required
to be submitted to the County.
THE COUNTY
Background
Indian River County (the "County") was established in 1925 by an act of the Florida 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 100 miles southeast of Orlando and
approximately 160 miles north of Miami. 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 about 23
miles of Atlantic beaches. For additional information see Appendix B "General Information Pertaining
to Indian River County, Florida".
County Government
Indian River County utilizes a County Commission/County Administrator form of government.
Indian River County is governed by a five -member Board of County Commissioners (the "Board") elected
for 4 year overlapping terms. The Board elects its Chairman and Vice -Chairman, and appoints a County
Administrator, County Attorney and executive aide to the Board. The County Administrator is
responsible for the administration and operation of the County government.
Other elected County officials are the Tax Collector, Property Appraiser, Supervisor of Elections,
Clerk of the Circuit Court, Sheriff, Circuit Court Judges, and County Judges. Each serves a 4 year term
and employs personnel to carry out his or her respective functions.
The Board
The members of the Board and the expiration of their terms are as follows:
Name
Office
Term Expires
Kenneth R. Macht
Chairman
November 1996
Fran B. Adams
Vice Chairman
November 1996
Carolyn K. Eggert
Member
November 1998
John W. Tippin
Member
November 1998
Richard N. Bird
Member
November 1996
3247/IND38NM-9/P0S-B0DY-1 17
Administration/County Staff
The County Administrator is employed by the Board and serves as Chief Administrative Officer
for the Board of County Commissioners. The Administrator oversees the day-to-day operations of those
departments and activities under the Board, makes policy recommendations to the Board and performs
other duties assigned to him by the Board.
The County Administrator prepares the annual budget for approval by the Board, recommends
the tax levy based upon the needs of the County as identified in the budget, and recommends debt
issuance or other borrowing plans when necessary. He prepares the 5 -year capital improvement program
as outlined in the County's adopted Comprehensive Plan, and recommends funding resources necessary
to implement such program.
Biographies of the key members of the County Administration are as follows:
Jeffrey K. Barton, Clerk of the Circuit Court, ex officio Clerk of the Board of County
Commissioners, was elected to that position for a 4 -year term beginning on . Prior
to that time, Mr. Barton served in various County administrative management positions, including
Assistant Director of Utility Services and Director, Office of Management and Budget. He was a Vero
Beach City Councilman in the years 1980-1984. He also served as Vice President, Controller and/or
Office Manager for 3 federal savings and loan associations, and was on the faculty of Indian River
Community College. Mr. Barton received his B.S. from Florida State University and his M.B.A. from
the University of Florida. His local community service activities include Chairman of the United Way
Budget and Allocation Committee, and President of the Vero Beach Kiwanis Club and Men's Republican
Club.
James E. Chandler, County Administrator, was appointed to that position by the Board in January
1989. Prior to that time, Mr. Chandler worked in management positions for several full service Florida
municipalities, and was responsible for all operational aspects of those communities. Specifically, he has
served as Assistant City Manager - Operations for the City of Fort Lauderdale and as City Manager for
the City of Hollywood. He has also served as an Administrative Assistant to the City Manager of the
City of St. Petersburg. Mr. Chandler received his Bachelor of Arts degree from the University of
Florida, and has completed numerous management programs relative to his current responsibilities. He
is a member of several professional organizations, including the Florida City and County Management
Association and the Municipal Finance Officers Association.
Charles P. Vitunac, County Attorney, was appointed to that position by the Board in 1985. Prior
to that time, Mr. Vitunac was Vero Beach City Attorney during 1981-1985, Palm Beach County Assistant
County Attorney during 1975-1981, and in private practice for one year shortly after graduating from law
school. He received his B.A. in economics from Stanford University in 1969, and his J.D. from the
University of San Diego School of Law in 1973. He is currently a member of the California and Florida
Bars.
COUNTY FINANCIAL MATTERS
Budgetary Process
Florida law requires all counties to have a balanced budget.
3247/IND3M-9/P0S-B0DY-1 18
The County's Constitutional Officers (including the Clerk of the Circuit Court, Sheriff,
Supervisor of Elections, Property Appraiser and Tax Collector) 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 as set forth in Chapter 129, Florida Statutes.
The Florida Department of Revenue has final authority over the operating budgets of the Tax
Collector and Property Appraiser (which are included in the County's General Fund). Constitutional
Officers and all departments controlled by the Board of County Commissioners submit their proposed
budgets to the Office of Management and Budget for assistance, review and compilation. The County
Administrator then reviews all county department budgets and makes his budget recommendation to the
Board of County Commissioners.
On or about July 15 of each year, the County Administrator and the Director of the Office of
Management and Budget, as the Board's designated budget officer, submit to the Board a tentative budget
for the ensuing fiscal year. The tentative budget includes proposed expenditures and the means of
financing them. Workshops are held by the Board for the purpose of reviewing the tentative budget by
fund on a department level.
Budget office staff revises the budget for any changes arising from the workshops. Once this
work is complete, staff begins work on the budget advertisement, required by law to be published in a
newspaper of general circulation in the County (the advertisement is run between the dates of the 2 public
hearings held in September).
During September public hearings are held pursuant to Section 200.065, 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 adopt at the fund level, the budgets for all governmental fund types. The
budgets legally adopted by the Board set forth the anticipated revenues by sources and the appropriations
by function. Budgets for enterprise and internal service funds are adopted on a basis consistent with
generally accepted accounting principles.
Computerized integrated budget reports are used for management control purposes throughout
the year. Management is authorized to transfer budgeted amounts between line items and departments
in any fund as long as the total appropriations of a fund are not exceeded. Board approval to amend the
budget is required when unanticipated revenues are received that management wishes to have
appropriated, thereby increasing the total appropriations of a fund. Appropriations for the County lapse
at the close of the fiscal year.
Description of Financial Practices
The County's accounting records for general governmental operations are maintained on a
modified accrual basis, with revenues being recorded when available and measurable, and expenditures
being recorded when the services or goods are received and the liabilities are incurred. Accounting
records for the County's proprietary funds are maintained on the accrual basis. The County operates on
a fiscal year ("FY") of October 1 to September 30.
Internal accounting controls for the County are designed to provide reasonable, but not absolute,
assurance regarding the safeguarding of assets against loss from unauthorized use or disposition and the
reliability of financial records for preparing financial statements and maintaining accountability for assets.
The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits
3247/IND38M-9/P0S-B0DY-1 19
likely to be derived and the evaluation of costs and benefits requires estimates and judgments by
management.
Total revenues for the General, Special Revenue, Debt Service and Capital Projects Funds were
$74,597,257, an increase of $2,536,932 from FY 1993. Revenues for FY 1994 and the change from the
previous FY are as follows:
Increase
A slight increase in the millage rates for the 1994 FY and an increase in taxable value of
$326,000,000 accounted for an increase in ad valorem taxes. The continuing recovery of the economy
has led to an increase in local option taxes. Intergovernmental revenues have also been influenced by
the economic recovery., contributing to increases in State shared revenues. In addition, the County
received State grants for improvements to Round Island Park, a county owned park located on a barrier
island. Increases in charges for services are also attributable to increases in economic activity. The
decrease in special assessments is due to a change in the nature of the assessments being levied. More
of the assessments are being used in the County's enterprise funds while fewer are being used for general
governmental funds. The decline in interest earnings has been caused by 2 factors: (1) a general decline
in interest rates and, (2) less funds available for investment as the County has continued to live off its
savings from the 1980's. Contributions for road improvements and a more successful effort in sales of
the County's surplus furniture and equipment resulted in an increase in miscellaneous revenues.
3247/IND38=-9/POS-BODY-1 20
FY 1994
Percent
(Decrease)
Revenues
Amounts
of Total
from FY 1993
Taxes
$50,045,611
67.1%
$1,930,408
Licenses and permits
295,945
0.4
8,435
Intergovernmental
10,632,401
14.3
679,369
Charges for services
6,151,859
8.2
739,330
Fines and forfeitures
962,250
1.3
111,828
Special Assessments
2,799,569
3.8
(341,439)
Interest
2,195,080
2.9
(1,293,512)
Miscellaneous
1,514,542
2.0
702,513
Total Revenues
$74,597,257
100.0%
$2,536,932
A slight increase in the millage rates for the 1994 FY and an increase in taxable value of
$326,000,000 accounted for an increase in ad valorem taxes. The continuing recovery of the economy
has led to an increase in local option taxes. Intergovernmental revenues have also been influenced by
the economic recovery., contributing to increases in State shared revenues. In addition, the County
received State grants for improvements to Round Island Park, a county owned park located on a barrier
island. Increases in charges for services are also attributable to increases in economic activity. The
decrease in special assessments is due to a change in the nature of the assessments being levied. More
of the assessments are being used in the County's enterprise funds while fewer are being used for general
governmental funds. The decline in interest earnings has been caused by 2 factors: (1) a general decline
in interest rates and, (2) less funds available for investment as the County has continued to live off its
savings from the 1980's. Contributions for road improvements and a more successful effort in sales of
the County's surplus furniture and equipment resulted in an increase in miscellaneous revenues.
3247/IND38=-9/POS-BODY-1 20
Total expenditures for the General, Special Revenue, Debt Service and Capital Projects Funds
were $77,587,773, an increase of $1,539,716 from FY 1993. Expenditures for FY 1994 and the change
from FY 1993 are as follows:
The increase in General Government is due to the construction of a new Judicial Complex. The
increase in Public Safety is for Fire Control and Emergency Services. The increase in Transportation
represents the completion of Indian River Boulevard Phase 1V, improvements to the intersection of
CR512 and CR510, and replacement of the Ord Avenue Bridge. The increase in Human Services is a
result of the County implementing the State Housing Initiatives Partnership program, which is designed
to provide loans and grants for the creation and preservation of affordable housing. The increase in
Culture/Recreation represents the expenditure of State and County funds for Round Island Park. The
Debt Service decrease was caused by the refunding of bonds in FY 1993 to achieve a long term savings
in interest rates.
The Solid Waste Disposal District produced a net income of $367,488, compared to a net loss
of $877,065 in FY 1993. Income available for debt service was $2,302,808, providing 2.49 times
coverage for debt service. The net loss for the Golf Course was $34,484, compared to a net loss of
$1,019,608 in FY 1993. Income available for debt service was $683,671, providing 0.91 times coverage
for debt service. The net income for the Water and Sewer System was $1,011,676, compared to a net
loss of $297,207 in FY 1993. Income available for debt service was $7,189,104, providing 1.95 times
coverage for debt service.
As noted above, the net income available for debt service on the County's Recreational (Golf
Course) Revenue Refunding Bonds, Series 1993 was less than the required 1.00 to 1. These bonds are
secured by the net revenues of the golf course, in addition to racetrack and jai alai fronton funds of the
County. Although there was a net loss from operations, prior year's reserves were sufficient to pay debt
service on the bonds without necessitating a draw on the reserve account for the bonds. As a result of
the net loss, the County increased rates at the golf course and is currently in compliance with the rate
covenant included in the resolution authorizing the issuance of the these bonds.
3247AND3800 MPOS-BODY-1 21
Increase
FY 1994
Percent
(Decrease)
Amount
of Total
from FY 1993
General Government
$22,592,742
29.1%
$2,303,687
Public Safety
28,383,551
36.6
403,864
Physical Environment
282,866
0.4
4,829
Transportation
13,201,190
17.0
1,805,303
Economic Environment
183,369
0.2
13,010
Human Services
3,888,198
5.0
338,505
Culture/Recreation
5,227,780
6.7
184,186
Debt Service
3,828,077
5.0
(3,513,668)
Total Expenditures
$77,587,773
100.0%
$1,539,716
The increase in General Government is due to the construction of a new Judicial Complex. The
increase in Public Safety is for Fire Control and Emergency Services. The increase in Transportation
represents the completion of Indian River Boulevard Phase 1V, improvements to the intersection of
CR512 and CR510, and replacement of the Ord Avenue Bridge. The increase in Human Services is a
result of the County implementing the State Housing Initiatives Partnership program, which is designed
to provide loans and grants for the creation and preservation of affordable housing. The increase in
Culture/Recreation represents the expenditure of State and County funds for Round Island Park. The
Debt Service decrease was caused by the refunding of bonds in FY 1993 to achieve a long term savings
in interest rates.
The Solid Waste Disposal District produced a net income of $367,488, compared to a net loss
of $877,065 in FY 1993. Income available for debt service was $2,302,808, providing 2.49 times
coverage for debt service. The net loss for the Golf Course was $34,484, compared to a net loss of
$1,019,608 in FY 1993. Income available for debt service was $683,671, providing 0.91 times coverage
for debt service. The net income for the Water and Sewer System was $1,011,676, compared to a net
loss of $297,207 in FY 1993. Income available for debt service was $7,189,104, providing 1.95 times
coverage for debt service.
As noted above, the net income available for debt service on the County's Recreational (Golf
Course) Revenue Refunding Bonds, Series 1993 was less than the required 1.00 to 1. These bonds are
secured by the net revenues of the golf course, in addition to racetrack and jai alai fronton funds of the
County. Although there was a net loss from operations, prior year's reserves were sufficient to pay debt
service on the bonds without necessitating a draw on the reserve account for the bonds. As a result of
the net loss, the County increased rates at the golf course and is currently in compliance with the rate
covenant included in the resolution authorizing the issuance of the these bonds.
3247AND3800 MPOS-BODY-1 21
Investment Policy
Generally. The County approved Resolution No. 89-76 on August 1, 1989, authorizing the
investment of excess funds not immediately needed by the County in those investments allowed by Section
125.31, Florida Statutes, which are U.S. direct obligations, U.S. agency obligations, certificates of
deposit, the Local Government Surplus Funds Trust Fund, and repurchase agreements backed by any of
the above instruments. The County approved Resolution 93-136 on August 10, 1993, adding the Florida
Counties Investment Trust as an authorized investment. During FY 1994 these investments had yields
ranging from 2.73 % to 8.75 %.
Investment in Mortgage -Backed Securities. The County has invested a significant amount of its
investment portfolio in mortgaged -back securities, as noted in the notes to the County's financial
statements included herein as Appendix A. At September 30, 1994, almost $54 million of the County's
approximate $70 million portfolio were invested in U.S. Government agency securities consisting of
collateralized mortgage obligations ("CMO's"), adjustable rate mortgage pools ("ARM's") and interest -
only strips ("IO's"), the market value of all of which, while categorized for accounting purposes as
Category 1 investments, is sensitive to market interest rate fluctuations. At September 30, 1994 the
market value of these securities was approximately $3 million below book value. Since September 30,
1994, the County has liquidated all of the IO's and a portion of the CMO's such that, presently,
mortgage-backed securities represent approximately $45 million of the County's approximate $88 million
portfolio. The County is liquidating the mortgage-backed securities on a continuing basis as the market
permits, without suffering material loss. The decline in market value of these securities has not affected,
and is not expected to affect, the County's cash flow. None of the County's investments are leveraged.
The County's current investment practice is to invest in the Local Government Surplus Funds
Trust Fund administered by the Florida State Board of Administration and short term U.S. Treasury
Securities.
Financial Statements and Annual Audit
Florida law requires that the financial statements of the County be audited on an annual basis.
Following the end of each fiscal year, a Comprehensive Annual Financial Report (the "CAFR") is
prepared by the Finance Department of the County, under the supervision of the Clerk of the Circuit
Court.
The general purpose financial statements, as well as the combining, individual fund, account
group and supporting financial statements of the County, (collectively the "Financial Statements")
included in the CAFR, are audited by an independent certified public accounting firm on an annual basis.
The County has selected Coopers & Lybrand, LLP, for such services. The County's Financial Statements
for the fiscal year ended September 30, 1994, have been included herein as Appendix A, in reliance upon
the audit thereof by Coopers & Lybrand, LLP, certified public accountants.
VALIDATION
Validation of the Bonds is not required under Florida law and has not been sought under Chapter
75, Florida Statutes. Under Section 100.321, Florida Statutes, the time period within which a suit must
be filed by a taxpayer challenging the results of the bond referendum has passed. The County Attorney
is of the opinion that the bond referendum held November 3, 1992, was duly called and held, and the
authority for the issuance of the Bonds and the levying of ad valorem taxes unlimited as to rate and
3247ANDMU-9/POS-BODY-1 22
amount for the payment of debt service on the Bonds is not subject to judicial challenge by taxpayers in
the County.
LITIGATION
General. The County is a defendant from time to time in various lawsuits, including, in
particular, litigation related to zoning and other land use regulation matters. It is the opinion of the
County Attorney that the County has meritorious defenses against current pending litigation; provided,
however, that there is no assurance that the County will not incur some liability.
The Bonds. There is no pending or, to the knowledge of the County, threatened litigation against
the County which in any way questions or affects (1) the validity of the Bonds, or any proceedings or
transactions relating to their issuance, sale, delivery or payment; (2) the pledge of the Ad Valorem Taxes
to secure payment of the Bonds; or (3) the collection and application of the Ad Valorem Taxes in
accordance with the provisions of the Resolution.
LEGAL MATTERS
Legal matters incident to the issuance of Bonds and with regard to the tax-exempt status of the
interest on Bonds (see "TAX EXEMPTION") are subject to the legal opinion of Bryant, Miller and Olive,
P.A., whose fees and expenses for legal services as Bond Counsel will be paid by the County from a
portion of the proceeds of Bonds. The signed legal opinion, dated and premised on law in effect as of
the date of original delivery of Bonds, will be delivered to the Underwriter at the time of original
delivery, and the text of the opinion will be printed on Bonds.
The proposed text of the legal opinion is set forth as Appendix D hereto. The actual legal
opinion to be delivered may vary from that text if necessary to reflect facts and law on the date of
delivery. The opinion will speak only as of its date, and subsequent distribution of the opinion by
recirculation of the Official Statement or otherwise shall create no implication that Bond Counsel has
reviewed or expresses any opinion concerning any of the matters referenced in the opinion subsequent
to its date.
Certain legal matters incident to the issuance of Bonds will be passed upon for the County by
Charles P. Vitunac, County Attorney, and Squire, Sanders & Dempsey, Disclosure Counsel.
TAX EXEMPTION
The Internal Revenue Code of 1986, as amended (the "Code") establishes certain requirements
which must be met subsequent to the issuance and delivery of the Bonds in order that interest on the
Bonds be and remain excluded from gross income for purposes of Federal income taxation. Non-
compliance may cause interest on the Bonds to be included in Federal gross income retroactive to the date
of issuance of the Bonds, regardless of the date on which such non-compliance occurs or is ascertained.
These requirements include, but are not limited to, provisions which prescribe yield and other limits
within which the proceeds of the Bonds and the other amounts are to be invested and require that certain
investment earnings on the foregoing must be rebated on a periodic basis to the Treasury Department of
the United States. The County has covenanted in the Resolution to comply with such requirements in
order to maintain the exclusion from Federal gross income of the interest on the Bonds.
3247/IND38M-9/P0S-60DY-1 23
In the opinion of Bond Counsel, assuming compliance with the aforementioned covenants, under
existing laws, regulations, judicial decisions and rulings, interest on the Bonds is excluded from gross
income for purposes of Federal income taxation. Interest on the Bonds is not an item of tax preference
for purposes of the Federal alternative minimum tax imposed on individuals or corporations; however,
interest on the Bonds is held by a corporation. The alternative minimum taxable income of a corporation
must be increased by 75% of the excess of such corporation's adjusted current earnings over its
alternative minimum taxable income (before this adjustment and the alternative tax net operating loss
deduction). "Adjusted Current Earning," will include interest on the Bonds. The Bonds are exempt from
all present intangible personal property taxes imposed pursuant to Chapter 199, Florida Statutes, but are
subject to Florida estate taxes and taxes imposed by Chapter 220, Florida Statutes, as applicable.
Except as described above, Bond Counsel will express no opinion regarding the Federal income
tax consequences resulting from the ownership of, receipt or accrual of interest on, or disposition of
Bonds. Prospective purchasers of Bonds should be aware that the ownership of Bonds may result in
collateral Federal income tax consequences, including (i) the denial of a deduction for interest on
indebtedness incurred or continued to purchase or carry Bonds, (ii) the reduction of the loss reserve
deduction for property and casualty insurance companies by 15% of certain items, including interest on
the Bonds, (iii) for taxable years beginning before January 1, 1996, the inclusion of interest on Bonds
in "modified alternative minimum taxable income" for purposes of the environmental tax imposed on
corporations, (iv) the inclusion of interest on the Bonds in earnings of certain foreign corporations doing
business in the United States for purposes of a branch profits tax, (v) the inclusion of interest on Bonds
in passive income subject to Federal income taxation of certain Subchapter S corporations with Subchapter
C earnings and profits at the close of the taxable year, and (vi) the inclusion of interest on the Bonds in
"modified adjusted gross income" by recipients of certain Social Security and Railroad Retirement benefits
for purposes of determining whether such benefits are included in gross income for Federal income tax
purposes.
PURCHASE, OWNERSHIP, SALE OR DISPOSITION OF THE BONDS AND THE RECEIPT
OR ACCRUAL OF THE INTEREST THEREON MAY HAVE ADVERSE FEDERAL TAX
CONSEQUENCES FOR CERTAIN INDIVIDUAL AND CORPORATE BONDHOLDERS.
PROSPECTIVE BONDHOLDERS SHOULD CONSULT WITH THEIR TAX SPECIALISTS FOR
INFORMATION IN THAT REGARD.
During recent years legislative proposals have been introduced in Congress, and in some cases
enacted, that altered certain Federal tax consequences resulting from the ownership of obligations that
are similar to the Bonds. In some cases these proposals have contained provisions that altered these
consequences on a retroactive basis. Such alteration of Federal tax consequences may have affected the
market value of obligations similar to the Bonds. From time to time, legislative proposals are pending
which could have an effect on both the Federal tax consequences resulting from ownership of Bonds and
their market value. No assurance can be given that legislative proposals will not be introduced or enacted
that would or might apply to, or have an adverse effect upon, the Bonds.
ADVISORS AND CONSULTANTS
The County has retained certain advisors and consultants in connection with the issuance of the
Bonds. These advisors and consultants are compensated from a portion of the proceeds of the Bonds,
identified as "Costs of Issuance" under the heading "SOURCES AND USES OF FUNDS" herein; and
their compensation is, in some instances, contingent upon the issuance of the Bonds and the receipt of
the proceeds thereof.
3247/IND38M-9/P0S-B0DY-1 24
Financial Advisor. The County has retained Fishkind & Associates, Inc., Orlando, Florida, as
financial advisor (the "Financial Advisor") in connection with the preparation of the County's plan of
financing and with respect to the authorization and issuance of Bonds. The Financial Advisor is not
obligated to undertake and has not undertaken to make, an independent verification or to assume
responsibility for the accuracy, completeness, or fairness of the information contained in the Official
Statement. The fees of the Financial Advisor will be paid from proceeds of the Bonds and such payment
is contingent upon the issuance of the Bonds.
Bond Counsel and Disclosure Counsel. Bryant, Miller and Olive, P.A., Tallahassee, Florida
represents the County as Bond Counsel. Squire, Sanders & Dempsey, Jacksonville, Florida ("SS&D"),
represents the County as Disclosure Counsel with respect to the issuance of the Bonds. As Disclosure
Counsel, SS&D is not obligated to undertake and has not undertaken to make, an independent verification
of or an assumption of responsibility for the accuracy, completeness, or fairness of the information
contained in the Official Statement. The fees of Bond Counsel and Disclosure Counsel will be paid from
proceeds of the Bonds, and such payment is contingent upon the issuance of the Bonds.
UNDERWRITING
The Underwriter shown on the cover page hereof has agreed, subject to the proceeding
authorizing the issuance of the Bonds, to purchase the Bonds from the County at a price of $
($ _ par amount, less original issue discount of $ and Underwriter's discount of
$ ), plus accrued interest from their date, for the purpose of resale. The Underwriter has
furnished the information on the cover page of this Official Statement pertaining to the public offering
price of Bonds. The public offering price of Bonds may be changed from time to time by the
Underwriter, and the Underwriter may allow a concession from the public offering price to certain
dealers. None of Bonds will be delivered by the County to the Underwriter unless all of Bonds are so
delivered.
BOND RATINGS
Moody's Investors Service and Standard & Poor's Ratings Group anticipate assigning the Bonds
the ratings of _ and _, respectively, or the understanding that the standard policy of municipal bond
insurance insuring the timely payment of the principal of and interest on such Bonds will be issued by
upon delivery of the Bonds; however, the provision of municipal bond
insurance is optional as further described in the Official Notice of Sale. There is no assurance that any
such ratings will continue for any given period of time or that they will not be lowered or withdrawn
entirely by the rating agencies, or any of them, if in their judgment circumstances so warrant. A
downward change in or withdrawal of such ratings, or any of them, may have an adverse effect on the
market price of the Bonds. An explanation of the significance of the ratings can be received from the
rating agencies.
DISCLOSURE MATTERS
Certificate as to Official Statement
The execution and delivery of this Official Statement has been duly authorized by the County.
At the time of delivery of Bonds to the Underwriter, the County will provide to the Underwriter a
certificate (which may be included in a consolidated closing certificate of the County), signed by those
3247/IND38MM/POS-BODY-1 25
County officials who signed this Official Statement
Official Statement and to its being a "final official
purposes of SEC Rule 15c2 -12(b)(3).
Continuing Disclosure
, relating to the accuracy and completeness of this
statement" in the judgement of the County for the
In accordance with the requirements of Rule 15c2-12 (the "Rule") promulgated by the Securities
and Exchange Commission, the County has agreed or will agree to provide,
(i) to each nationally recognized municipal securities information repository ("NRMSIR") and,
if designated by the State, the state information depository ("SID"), certain annual financial
information and operating data, including audited financial statements, generally consistent
with the information contained under the subheadings "Historical Table of Assessed
Value," "Historical Ad Valorem Millage Rates," "Collections" and "Comparative Ratios
of Bonded Debt" under the heading "AD VALOREM TAX MATTERS"; such information
is expected to be available on or before June 1 of each year for the fiscal year ending on
September 30 of the preceding calendar year, and will be made available, in addition to
the NRMSIR's and the SID, to each holder of Bonds who makes request for such
information; provided, that audited financial statements not available by June 1 will be
furnished as soon as practical upon completion of the audit and acceptance by the report
by the Board;
(ii) in a timely manner, to each NRMSIR or to the Municipal Securities Rulemaking Board
("MSRB") and to the SID, notice of the occurrence of any of the following events with
respect to the Bonds, if, in the judgment of the County, such event is material:
(a) principal and interest payment delinquencies,
(b) non-payment related defaults,
(c) unscheduled draws on debt service reserves reflecting financial difficulties,
(d) unscheduled draws on credit enhancements reflecting financial difficulties,
(e) substitution of credit or liquidity providers, or their failure to perform,
(f) adverse tax opinions or events affecting the tax-exempt status of the
security,
(g) modifications to rights of security holders,
(h) bond calls,
(i) defeasances,
(j) release, substitution, or sale of property securing repayment of the
securities, and
(k) rating changes;
3247/IND3WW-9/P0S-B0DY-1 26
(iii) in a timely manner, to each NRMSIR or to the MSRB and to the SID, notice of a failure by
the County to provide the required annual financial information on or before the date
specified in its written continuing disclosure undertaking.
The County reserves the right to modify from time to time the specific types of information
provided or the format of the presentation of such information, to the extent necessary or appropriate in
the judgment of the County; provided, that the County agrees that any such modification will be done
in a manner consistent with the Rule. The County reserves the right to terminate its obligation to provide
annual financial information and notices of material events, as set forth above, if and when the County
no longer remains an "obligated person" with respect to the Bonds within the meaning of the Rule. The
County acknowledges that its undertaking pursuant to the Rule described under this subheading is
intended to be for the benefit of the owners of the Bonds and shall be enforceable by the owners;
provided, that the right to enforce the provisions of this undertaking shall be limited to a right to obtain
specific enforcement of the County's obligations hereunder, and any failure by the County to comply with
the provisions of this undertaking shall not be an event of default with respect to the Bonds under the
Resolution.
The requirements of (i) above, do not necessitate the preparation of any separate annual report
addressing only the Bonds. The requirements of (i) may be met by the filing of a combined bond report
or the County's Comprehensive Annual Financial Report; provided, such report includes all of the
required information and is available by June 1. Additionally, the County may incorporate any
information provided in any prior filing with each NRMSIR or included in any final official statement
of the County, provided such final official statement is filed with the MSRB.
Miscellaneous
The references, excerpts and summaries of all documents, resolutions and ordinances referenced
herein do not purport to be complete statements of the provisions of such documents, resolutions and
ordinances, and reference is directed to all such documents, resolutions and ordinances for full and
complete statements of all matters of fact relating to Bonds, the security for and the repayment of Bonds
and the rights and obligations of the holders thereof.
INDIAN RIVER COUNTY, FLORIDA
By:
Chairman, Board of County
Commissioners
3247AND3SM-9/1'OS-BODY-1 27
APPENDIX A
FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED
SEPTEMBER 30, 1994
3247AND38M-9/POS-BODY-1 A-1
APPENDIX B
GENERAL INFORMATION PERTAINING TO
INDIAN RIVER COUNTY, FLORIDA
3247AND38M-9/POS-BODY-1 B-1
APPENDIX B
GENERAL INFORMATION CONCERNING
INDIAN RIVER COUNTY
The following information is included only for the purposes of providing general background
information. The information has been compiled on behalf of the County, and such compilation involved
oral and written communication with the various sources indicated. The information is subject to change,
although efforts have been made to update information where practicable.
Indian River County was established in 1925 by an act of the Florida Legislature separating it
from St. Lucie County, and it encompasses approximately 497 square miles. It is located on the central
east coast of Florida, 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.
The other incorporated cities in the County are Fellsmere, Indian River Shores, Orchid and Sebastian.
There are approximately 100 miles of waterfront land in the County, including about 23 miles of Atlantic
beaches.
Temperatures range from an average of approximately 58°F in January to approximately 81 °F
in August, with an average year-round temperature of 73.4°F. Yearly rainfall is from 50 to 55 inches,
with September usually the rainiest month.
Population
The 1980 Census population of the County was 59,896, while the 1990 Census population was
96,208, and the current 1994 estimated population is 97,415. Vero Beach, the largest city in the County,
and the County seat, had a 1980 Census population of 16,176 and an estimated 1990 Census population
of 18,226.
The most current rankings show that in 1994, Indian River County ranked 31 st out of 67 counties
in Florida in terms of total population. As illustrated from the following table, the population of the
County has grown significantly since 1960. It is anticipated that growth will continue in the foreseeable
future.
Year
Population
% Increase
1960 U.S. Census
25,309
--
1970 U.S. Census
35,992
42%
1980 U.S. Census
59,896
66
1990 U.S. Census
90,208
51
1994 (Estimated)
97,415
8
While the population of the County has been steadily increasing, so has the median age of the
resident population. The following table illustrates the percentage of population in the various age groups
since 1960.
Ate Group1960
1970
1980
1990
1993
0-14
30.4%
27.3
18.1%
16.4%
16.1%
15-44
33.5
33.4
37.2
34.9
34.6
45-64
22.1
21.9
24.4
21.6
21.8
65 +
13.9
17.4
20.3
27.1
27.4
Source: U.S. Census Bureau
University of Florida Bureau of Economic and Business Research;
Florida Estimates of Population 1994
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 crop years 1992-1993, the
County had 65,446 acres of citrus which produced 22,552,000 boxes of oranges, grapefruit and specialty
fruit. The County was third among all Florida counties in total citrus production, but second in grapefruit
production. Part of the citrus fruit grown in the County is sold to the fresh fruit market. There are 21
major packing houses and one citrus juice processing plant located in the County. Approximately 50,000
acres of improved pasture and rangeland are utilized for dairy farming and beef cattle production, while
approximately 35,000 acres remain as forest and woodlands.
Other industries include cabinet shops, machine shops, welding shops, sheet metal fabricators,
mattress ticking, construction, architectural and ornamental iron works, stone and marble products,
asphalt, pilot training school, welding school, television antennas, wholesale seafood, metal windows and
awnings, printing, air handling systems, ready mix concrete, concrete blocks, precast concrete products,
electronic components, plating and machine shop equipment, screw machine parts, aircraft parts and
supplies, factory built homes, dairy products, newspaper, radio stations and temperature controls. Nine
banks and 11 savings and loan associations are located within the County.
Tourism and Recreation
The Atlantic beaches and the excellent climate in the County provide the basis for a year-round
tourist industry. There are numerous hotels and motels in the County as well as retail and service
establishments geared to serving the tourist trade.
Forty-six miles of riverfront on the Indian River, many miles of canals and lakefront and about
23 miles of Atlantic Ocean beaches as well as 2 state parks, 8 county parks, and 9 public and 7 private
golf courses provide ample opportunity for outdoor recreation.
B-2
The Los Angeles Dodgers baseball club spring trains in Vero Beach. The 340 acre complex is
also home to the largest and most advanced baseball school in the world, conducted by the Dodger
organization.
Employment
County employment fluctuates seasonally, with most unemployment occurring from July through
October, the slowest months in both the tourist and citrus picking seasons.
Employment by sector for the calendar year 1993 was as follows:
B-3
Percent of
Distribution
Agriculture
12.14%
Construction
7.07
Manufacturing
5.14
Transportation, Communications & Utilities
2.59
Wholesale Trade
1.91
Retail Trade
22.36
Finance, Insurance & Real Estate
5.82
Services
35.03
Public Administration
7.84
Source: 1994 Florida Statistical Abstract, University
of Florida, Bureau of Economic and Business Research
B-3
Major employers in Indian River County include the following:
Establishment
Product or Service
Employment
Indian River County School District
School system
2,127
Indian River Memorial Hospital
Medical services
1,350
Indian River County
County government
1,361
Publix Corporation
Retail grocery
750
Sun Ag., Inc.
Citrus and agriculture
550-800*
City of Vero Beach
City government
597
Grave Brothers, Inc.
Citrus
450
Sebastian Hospital
Acute Care Facility
340
Gracewood Fruit Co.
Citrus
465*
Hal/Kennedy Groves
Citrus
450*
Dodgertown Complex
Convention Center, Baseball
450*
Johns Island
Residential Resort
350*
WalMart
Retail Merchandise
330
Piper Aircraft Corporation
Aircraft Manufacturer
380
*Peak seasonal employment
The following tables set forth a comparison of the unemployment rate in the County compared
to that in the State of Florida:
Annual Averaees
Indian River County
State of Florida
1994
10.5%
6.67%
1993
10.5
7.0
1992
11.9
7.5
1991
9.9
7.0
1990
9.2
6.2
1989
6.4
5.6
1988
6.8
5.0
1987
8.9
5.3
Source: State of Florida, Department of Labor and Unemployment Security for years 1987 - 1994
I B-4
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 and State Road AIA for north/south and State Road 60 for travel to the west, while the Florida
Turnpike runs 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 chartered airline service and is capable of handling most
commercial aircraft, while one other airport in the County serves both charter and private aircraft.
Scheduled airline service is available to County residents at the Melbourne Regional Airport (about a 50
minute drive), Orlando International Airport and Palm Beach International Airport (each about an hour
and a half drive).
Hospitals
The Indian River Hospital District, encompassing all but 6 square miles of the County, operates
a 347 -bed facility in Vero Beach. The Sebastian Hospital, a private for-profit acute care facility, is
located in the northern part of the County on U.S. 1. There are presently over 260 physicians serving
the hospital and area residents. The Healthcare South facility offers physical and speech therapy to
handicapped children and adults.
Communications and Utilities
One daily newspaper is published in the County. There are 5 local radio stations. Television
reception is good for the major commercial stations, and cable is available to County residents.
Telephone service is supplied by Southern Bell. Vero Beach Electric System and Florida Power and
Light Company supply electricity.
Government
The County has a 5 -member Board of County Commissioners (the "Board"), one from each of
5 districts elected at large (County -wide) for staggered terms of 4 years. The Chairman and Vice
Chairman are elected by the Board. A County Administrator is appointed by the Board and is responsible
for administrative and fiscal control of the resources of the County.
The Board apportions and levies County taxes and controls the expenditure of all County funds,
except school funds, which are controlled by The School Board of Indian River County, and certain
special taxing districts which are managed by independent entities. The fiscal year of the County runs
from October I to the following September 30. Operating revenue is raised from real and personal
property taxes, and a variety of excise taxes and user fees, with supplements from state and federal
sources for County roads, welfare and health.
3247/IND38002-9/EXHIBIT-B-GEN-INFO-1
B-5
APPENDIX C
FORM OF BOND RESOLUTION
3247/IND3§M-9/POS-BODY-1 C-1
APPENDIX D
FORM OF BOND COUNSEL OPINION
3247/IND38M-9/P0S-B0DY• I D-1
APPENDIX E
FORM OF MUNICIPAL BOND
INSURANCE POLICY
3247/IND3SM-9/POS-BODY-1 E-1